N-CSR 1 primary-document.htm
 
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: 811-02857
 
Name of Fund: BlackRock Bond Fund, Inc.
BlackRock Sustainable Total Return Fund
         
Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809
 
Name and address of agent for service:  John M. Perlowski, Chief Executive Officer, BlackRock Bond Fund, Inc., 55 East 52nd Street, New York, NY 10055
 
Registrant’s telephone number, including area code: (800) 441-7762
 
Date of fiscal year end: 09/30/2022
 
Date of reporting period: 09/30/2022
 
Item 1 – Report to Stockholders
(a)  The Report to Shareholders is attached herewith.
             (b)  Not Applicable

 
September
30,
2022
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2022
Annual
Report
BlackRock
Funds
V
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
BlackRock
Bond
Fund,
Inc.
BlackRock
Sustainable
Total
Return
Fund
Dear
Shareholder,
The
12-month
reporting
period
as
of
September
30,
2022
saw
the
emergence
of
significant
challenges
that
disrupted
the
economic
recovery
and
strong
financial
markets
of
2021.
The
U.S.
economy
shrank
in
the
first
half
of
2022,
ending
the
run
of
robust
growth
that
followed
the
reopening
of
global
economies
and
the
development
of
COVID-19
vaccines.
Changes
in
consumer
spending
patterns
and
a
tight
labor
market
led
to
elevated
inflation,
which
reached
a
40-year
high.
Moreover,
while
the
foremost
effect
of
Russia’s
invasion
of
Ukraine
has
been
a
severe
humanitarian
crisis,
the
ongoing
war
continued
to
present
challenges
for
both
investors
and
policymakers.
Equity
prices
fell
as
interest
rates
rose,
particularly
weighing
on
relatively
high-valuation
growth
stocks
and
economically
sensitive
small-capitalization
stocks.
While
both
large-
and
small-capitalization
U.S.
stocks
fell,
declines
for
small-capitalization
U.S.
stocks
were
steeper.
Both
emerging
market
stocks
and
international
equities
from
developed
markets
fell
significantly,
pressured
by
rising
interest
rates
and
a
strengthening
U.S.
dollar.
The
10-year
U.S.
Treasury
yield
(which
is
inversely
related
to
bond
prices)
rose
notably
during
the
reporting
period
as
investors
reacted
to
higher
inflation
and
attempted
to
anticipate
its
impact
on
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
and
increasing
uncertainty
led
to
higher
corporate
bond
spreads
(the
difference
in
yield
between
U.S.
Treasuries
and
similarly-dated
corporate
bonds).
The
U.S.
Federal
Reserve
(the
“Fed”),
acknowledging
that
inflation
is
proving
more
persistent
than
expected,
raised
interest
rates
five
times
while
indicating
that
additional
rate
hikes
were
likely.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
is
accelerating
the
reduction
of
its
balance
sheet.
As
investors
attempted
to
assess
the
Fed’s
future
trajectory,
the
Fed’s
statements
late
in
the
reporting
period
led
markets
to
believe
that
additional
tightening
is
likely
in
the
near
term.
The
pandemic’s
restructuring
of
the
economy
brought
an
ongoing
mismatch
between
supply
and
demand,
contributing
to
the
current
inflationary
regime.
While
growth
has
slowed
in
2022,
we
believe
that
taming
inflation
requires
a
more
dramatic
economic
decline
to
bring
demand
back
to
a
lower
level
that
is
more
in
line
with
the
economy’s
capacity.
The
Fed
has
been
raising
interest
rates
at
the
fastest
pace
in
decades,
and
seems
set
to
overtighten
in
its
effort
to
get
inflation
back
to
target.
With
this
in
mind,
we
believe
the
possibility
of
a
U.S.
recession
in
the
near-term
is
high,
and
the
outlook
for
Europe
and
the
U.K.
is
also
troubling.
Investors
should
expect
a
period
of
higher
volatility
as
markets
adjust
to
the
new
economic
reality
and
policymakers
attempt
to
adapt
to
rapidly
changing
conditions.
In
this
environment,
while
we
favor
an
overweight
to
equities
in
the
long-term,
the
market’s
concerns
over
excessive
rate
hikes
from
central
banks
moderate
our
outlook.
Rising
input
costs
and
a
deteriorating
economic
backdrop
in
China
and
Europe
are
likely
to
challenge
corporate
earnings,
so
we
are
underweight
equities
overall
in
the
near
term.
However,
we
see
better
opportunities
in
credit,
where
higher
spreads
provide
income
opportunities
and
partially
compensate
for
inflation
risk.
We
believe
that
investment-grade
corporates,
local-
currency
emerging
market
debt,
and
inflation-protected
bonds
(particularly
in
Europe)
offer
strong
opportunities
for
a
six-
to
twelve-month
horizon.
Overall,
our
view
is
that
investors
need
to
think
globally,
position
themselves
to
be
prepared
for
a
decarbonizing
economy,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
blackroc
k.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
Rob
Kapito
President,
BlackRock
Advisors,
LLC
The
Markets
in
Review
Rob
Kapito
President,
BlackRock
Advisors,
LLC
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
September
30,
2022
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
(20.20
)%
(15.47
)%
U.S.
small
cap
equities
(Russell
2000
®
Index)
(19.01
)
(23.50
)
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
(22.51
)
(25.13
)
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(21.70
)
(28.11
)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
0.58
0.63
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(10.81
)
(16.20
)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
(9.22
)
(14.60
)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
(6.30
)
(11.50
)
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
(10.42
)
(14.15
)
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Fund
Summaries
.......................................................................................................
4
About
Fund
Performance
.................................................................................................
13
Disclosure
of
Expenses
...................................................................................................
14
Derivative
Financial
Instruments
.............................................................................................
14
Financial
Statements:
Schedules
of
Investments
...............................................................................................
15
Statements
of
Assets
and
Liabilities
.........................................................................................
52
Statements
of
Operations
................................................................................................
55
Statements
of
Changes
in
Net
Assets
........................................................................................
56
Financial
Highlights
.....................................................................................................
58
Notes
to
Financial
Statements
...............................................................................................
67
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
82
Important
Tax
Information
.................................................................................................
83
Director
and
Officer
Information
..............................................................................................
84
Additional
Information
....................................................................................................
87
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
89
Fund
Summary
as
of
September
30,
2022
2022
BlackRock
Annual
Report
to
Shareholders
4
BlackRock
Sustainable
High
Yield
Bond
Fund
Investment
Objective
BlackRock
Sustainable
High
Yield
Bond
Fund's
(the
“Fund”)
investment
objective
is
to
seek
to
maximize
total
return,
consistent
with
income
generation
and
prudent
investment
management,
while
seeking
to
maintain
certain
environmental,
governance
and
social
(“ESG”)
characteristics,
climate
risk
exposure
and
climate
opportunities
relative
to
the
Fund’s
benchmark.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
12-month
period
ended
September
30,
2022,
the
Fund’s
Class
K
and
Institutional
Shares
outperformed
the
benchmark,
the
Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index.
For
the
same
period,
the
Investor
A
shares
performed
in
line.
What
factors
influenced
performance?
The
Fund’s
underweight
in
the
midstream
energy
sector
was
a
strong
contributor
to
relative
performance,
as
were
underweights
in
the
retail
and
pharmaceuticals
sectors.
An
underweight
in
BB
rated
bonds
also
contributed.
Asset
allocation
was
an
additional
contributor,
highlighted
by
a
tactical,
out-of-benchmark
allocation
to
senior
loans.
Securities
in
the
category
typically
offer
floating
rates,
which
led
to
heightened
investor
demand
in
the
rising-rate
environment.
On
the
other
hand,
overweights
in
the
technology
and
wireline
telecommunications
sectors
hurt
performance.
Liquid
products
used
to
manage
the
Fund’s
positioning,
including
derivatives,
credit
default
swaps
and
exchange-traded
funds,
detracted
from
results.
An
overweight
in
CCC
issues,
which
lagged
the
broader
market,
also
detracted.
Describe
recent
portfolio
activity.
The
investment
adviser
strived
to
maintain
below-average
portfolio
risk
at
a
time
of
elevated
concerns
about
rising
interest
rates
and
slowing
economic
growth.
The
investment
adviser
sought
to
accomplish
this
by
reducing
the
Fund’s
credit
exposure
and
lowering
portfolio
duration
(interest
rate
sensitivity)
over
the
course
of
the
period.
The
investment
adviser
also
reduced
the
Fund’s
tactical
allocation
to
equities,
while
maintaining
its
position
in
senior
loans.
At
the
sector
level,
the
investment
adviser
reduced
the
portfolio’s
weighting
in
healthcare
issues.
Describe
portfolio
positioning
at
period
end.
B
rated
bonds
were
the
Fund’s
largest
position
by
credit
rating,
followed
by
BBs
and
CCCs,
respectively.
The
Fund
remained
underweight
in
the
distressed
category.
Loans
were
less
than
10%
of
the
portfolio.
The
investment
adviser
stayed
focused
on
bottom-up
security
selection,
assessing
each
issuer
in
the
portfolio
to
assess
the
potential
impact
of
the
headwinds
facing
the
economy.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Fund
Summary
as
of
September
30,
2022
(continued)
5
Fund
Summary
BlackRock
Sustainable
High
Yield
Bond
Fund
GROWTH
OF
$10,000
INVESTMENT
The
Fund
commenced
operations
on
July
22,
2021.
Performance
N/A
-
Not
applicable
as
share
class
and
index
do
not
have
a
sales
charge.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
(a)
Assuming
maximum
sales
charges,
if
any,
tr
ansaction
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
net
assets,
plus
the
amount
of
any
borrowings
for
investment
purposes,
in
high
yield
bonds.
(c)
Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index,
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%
of
the
index.
Average
Annual
Total
Returns
(a)
1
Year
Since
Inception
(b)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
..................................................
7.25‌%
5.84‌%
(13.97‌)%
N/A‌
(11.85‌)%
N/A‌%
Investor
A
...................................................
6.71‌
5.36‌
(14.18‌)
(17.61‌)%
(12.07‌)
(15.03‌)
Class
K
....................................................
7.29‌
6.05‌
(13.93‌)
N/A‌
(11.81‌)
N/A‌
Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index
............
—‌
—‌
(
14.15‌
)
N/A‌
(11.57‌)
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”
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees.
(b)
The
Fund
commenced
operations
on
July
22,
2021.
Fund
Summary
as
of
September
30,
2022
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
6
BlackRock
Sustainable
High
Yield
Bond
Fund
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Portfolio
Information
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
896.00‌
$
2.71‌
$
1,000.00‌
$
1,022.21‌
$
2.89‌
0.57‌%
Investor
A
................................
1,000.00‌
896.20‌
3.90‌
1,000.00‌
1,020.96‌
4.15‌
0.82‌
Class
K
..................................
1,000.00‌
896.20‌
2.52‌
1,000.00‌
1,022.41‌
2.69‌
0.53‌
(a)
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).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
88.8‌
%
Floating
Rate
Loan
Interests
...........................
10.4‌
Common
Stocks
...................................
0.7‌
Preferred
Securities
.................................
0.1‌
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
BBB/Baa
.......................................
4.3‌
%
BB/Ba
.........................................
45.5‌
B
............................................
36.8‌
CCC/
Caa
.......................................
12.0‌
NR
...........................................
1.4‌
(a)
Excludes
short-term
securities.
(b)
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.
Fund
Summary
as
of
September
30,
2022
7
Fund
Summary
BlackRock
Sustainable
Low
Duration
Bond
Fund
Investment
Objective
BlackRock
Sustainable
Low
Duration
Bond
Fund's
(the
“Fund”)
investment
objective
is
to
seek
total
return
in
excess
of
the
reference
benchmark
in
a
manner
that
is
consistent
with
preservation
of
capital
while
seeking
to
maintain
certain
environmental,
social
and
governance
(“ESG”)
characteristics,
climate
risk
exposure
and
climate
opportunities
relative
to
the
Fund’s
benchmark.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
period
beginning
with
the
Fund’s
inception
on
October
18,
2021
and
ending
on
September
30,
2022,
the
Fund
underperformed
its
benchmark,
the
ICE
BofA
1-3
Year
U.S.
Corporate
&
Government
Index.
What
factors
influenced
performance?
Allocations
to
mortgage-backed
securities
(“MBS”),
investment-grade
corporate
bonds,
high
yield
bonds
and
asset-backed
securities
(“ABS”)
detracted
from
performance.
Duration
and
yield
curve
positioning
were
the
primary
contributors
to
performance,
followed
by
underweights
in
the
emerging
markets
and
U.S.
Treasuries.
(Duration
is
a
measure
of
interest
rate
sensitivity.)
The
Fund
held
derivatives
during
the
reporting
period.
Specifically,
it
used
futures
and
interest
rate
swaps
to
manage
its
duration
and
yield
curve
positioning.
It
also
used
currency
forward
contracts
to
manage
currency
risk
or
take
active
currency
positions,
and
it
used
options
on
swaps
to
express
views
on
volatility.
In
the
aggregate,
the
Fund’s
use
of
derivatives
had
a
positive
impact
on
performance.
The
Fund’s
cash
position
had
no
material
impact
on
performance.
Describe
recent
portfolio
activity.
The
Fund
held
a
short
duration
bias
early
in
the
reporting
period,
based
on
the
view
that
persistent
inflation
would
prompt
the
Fed
to
keep
raising
interest
rates.
Toward
the
end
of
the
summer
of
2022,
the
market
started
to
price
in
a
terminal
fed
funds
rate
(in
other
words,
the
point
at
which
the
Fed
could
stop
hiking)
in
the
range
of
4.25-4.5%.
As
a
result,
the
investment
adviser
shifted
the
Fund
to
neutral
duration
stance.
In
September
2022,
the
Fund
adopted
a
slightly
long
duration
bias.
This
shift
reflected
the
investment
adviser’s
view
that
the
market
was
close
to
pricing
in
the
full
extent
of
Fed
rate
hikes.
The
Fund
tactically
adjusted
its
positioning
in
investment-grade
corporate
bonds
during
the
course
of
the
year,
with
a
preference
for
new-issue
deals
that
offered
attractive
concessions.
While
credit
fundamentals
largely
remained
stable,
reinforced
by
solid
earnings
and
a
healthy
U.S.
labor
market,
the
investment
adviser
slightly
trimmed
to
the
allocation
to
corporate
issues
in
the
second
and
third
quarters
of
2022
and
rotated
into
Treasuries
on
the
expectation
that
yield
spreads
would
widen.
The
investment
adviser
maintained
a
steady
positioning
within
high
yield,
where
it
held
an
allocation
to
help
enhance
portfolio
income.
Similarly,
the
investment
adviser
maintained
the
Fund’s
position
in
ABS,
with
a
focus
on
deals
backed
by
high-quality
consumer
collateral.
It
also
added
to
AAA
rated
collateralized
loan
obligations
in
both
the
primary
and
secondary
markets
throughout
the
period,
as
the
category’s
attractive
yields
versus
corporates
created
a
compelling
relative
value
opportunity.
Within
commercial
mortgage-backed
securities
(“CMBS”),
the
investment
adviser
maintained
an
allocation
to
multi-family
deals
on
the
belief
that
they
could
prove
resilient
in
a
recession.
Since
the
Fund
is
managed
with
sustainability
goals
in
mind,
the
investment
adviser
invested
in
impact
MBS.
Impact
MBS
are
custom
pools
created
by
Fannie
Mae
for
BlackRock
that
support
the
former’s
“Duty
to
Serve”
goals.
These
pools
include
specific
mortgage
borrowers,
such
as
low-income
and
very
low-income
family
homes,
as
well
as
homes
in
low-income
and
high-minority
areas.
In
general,
such
mortgages
provide
credit
to
a
targeted
group
of
borrowers,
for
whom
the
benefits
of
homeownership
could
have
a
significant
social
impact.
The
investment
adviser
also
increased
the
Fund’s
allocation
to
green
bonds
in
the
first
half
of
the
period.
Unlike
a
debt
offering
from
a
company
that
presents
its
overall
operations
as
environmentally
friendly,
green
bond
proceeds
are
ring-fenced
on
the
issuer’s
balance
sheet,
set
aside
for
the
exclusive
purpose
of
financing
one
or
more
projects
deemed
environmentally
beneficial.
The
investment
adviser
primarily
added
green
bonds
from
AAA
rated
sovereign
issuers.
Describe
portfolio
positioning
at
period
end.
The
Fund
had
a
long
duration
bias
predicated
on
the
view
that
the
market
was
close
to
pricing
in
the
Fed’s
terminal
rate
accurately.
The
Fund
maintained
an
allocation
to
U.S.
Treasuries
on
the
belief
the
economy
would
eventually
slow,
but
it
was
underweight
in
the
asset
class.
The
Fund
was
overweight
in
investment-grade
corporate
bonds.
Relative
to
the
government/credit
index,
the
Fund
held
structural
out-of-benchmark
allocations
to
high
yield
bonds,
ABS,
CMBS
and
agency
and
non-agency
MBS.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Fund
Summary
as
of
September
30,
2022
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
8
BlackRock
Sustainable
Low
Duration
Bond
Fund
GROWTH
OF
$10,000
INVESTMENT
The
Fund
commenced
operations
on
October
18,
2021.
Performance
N/A
-
Not
applicable
as
share
class
and
index
do
not
have
a
sales
charge.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
(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.
The
Fund
may
invest
up
to
20%
of
its
assets
in
non-investment
grade
bonds
(commonly
called
“high
yield”
or
“junk
bonds”).
(c)
ICE
BofA
1-3
Year
U.S.
Corporate
&
Government
Index,
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.
Total
Returns
(a)
Since
Inception
(b)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
Without
Sales
Charge
With
Sales
Charge
Institutional
..........................................................................
3.50‌%
2.58‌%
(6.24‌)%
N/A‌
Investor
A
...........................................................................
3.17‌
2.31‌
(6.46‌)
(8.57‌)
%
Class
K
............................................................................
3.53‌
2.76‌
(6.20‌)
N/A‌
ICE
BofA
1-3
Year
U.S.
Corporate
&
Government
Index
..........................................
—‌
—‌
(4.91‌)
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees
.
(b)
The
Fund
commenced
operations
on
October
18,
2021.
Fund
Summary
as
of
September
30,
2022
(continued)
9
Fund
Summary
BlackRock
Sustainable
Low
Duration
Bond
Fund
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Portfolio
Information
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
967.40‌
$
1.87‌
$
1,000.00‌
$
1,023.16‌
$
1.93‌
0.38‌%
Investor
A
................................
1,000.00‌
966.20‌
3.15‌
1,000.00‌
1,021.86‌
3.24‌
0.64‌
Class
K
..................................
1,000.00‌
967.60‌
1.73‌
1,000.00‌
1,023.31‌
1.78‌
0.35‌
(a)
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).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
34.0‌
%
U.S.
Treasury
Obligations
.............................
28.1‌
Asset-Backed
Securities
..............................
14.7‌
U.S.
Government
Sponsored
Agency
Securities
..............
10.6‌
Non-Agency
Mortgage-Backed
Securities
..................
7.3‌
Foreign
Agency
Obligations
............................
5.3‌
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
AAA/Aaa
(c)
......................................
62.4‌
%
AA/Aa
.........................................
1.0‌
A
............................................
12.1‌
BBB/Baa
.......................................
15.8‌
BB/Ba
.........................................
3.8‌
B
............................................
1.9‌
CCC/Caa
.......................................
0.0‌
(d)
NR
...........................................
3.0‌
(a)
Excludes
short-term
securities
and
TBA
sale
commitments.
(b)
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.
(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
0.1%
of
the
Fund's
total
investments.
Fund
Summary
as
of
September
30,
2022
2022
BlackRock
Annual
Report
to
Shareholders
10
BlackRock
Sustainable
Total
Return
Fund
Investment
Objective
BlackRock
Sustainable
Total
Return
Fund’s
(the
“Fund”)
investment
objective
is
to
realize
a
total
return
that
exceeds
that
of
the
Bloomberg
U.S.
Aggregate
Bond
Index
(the
"Benchmark")
while
seeking
to
maintain
certain
environmental,
social
and
governance
(“ESG”)
characteristics,
climate
risk
exposure
and
climate
opportunities
relative
to
the
Benchmark.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
period
beginning
with
the
Fund’s
inception
on
October
18,
2021
and
ending
on
September
30,
2022,
the
Fund
underperformed
its
benchmark,
the
Bloomberg
U.S.
Aggregate
Bond
Index.
What
factors
influenced
performance?
The
Fund’s
allocation
to
securitized
assets,
U.S.
high
yield
bonds,
and
European
corporate
issues
detracted
from
relative
performance.
Its
duration
and
yield
curve
positioning
contributed,
as
did
its
positioning
with
respect
to
foreign
currencies.
(Duration
is
a
measure
of
interest
rate
sensitivity.)
Describe
recent
portfolio
activity.
The
investment
environment
was
highly
challenging,
with
most
areas
of
the
fixed-income
market
losing
ground
on
concerns
about
high
inflation,
global
monetary
policy
tightening,
Russia’s
invasion
of
Ukraine,
and
the
prospect
of
slowing
economic
growth.
Given
these
crosscurrents,
the
investment
adviser
maintained
a
defensive
positioning
in
the
early
part
of
the
period.
It
favored-higher-quality
securities
during
this
time,
and
it
increased
the
portfolio’s
allocations
to
U.S.
investment-grade
corporate
bonds,
agency
mortgage-backed
securities
(“MBS”)
and
short-term
debt
within
the
securitized
category.
The
investment
adviser
also
tactically
added
to
duration
(interest-rate
sensitivity)
on
the
short
end
of
the
yield
curve
following
the
increase
in
yields
in
early
2022.
The
investment
adviser
maintained
low
allocations
to
high
yield
bonds
and
emerging
market
debt
due
to
the
ongoing
volatility
across
the
credit
sectors.
In
the
second
calendar
quarter
of
2022,
the
investment
advisor
tactically
moved
to
an
underweight
in
U.S.
duration
in
response
to
market
volatility
and
the
steepening
of
the
yield
curve.
It
also
added
a
position
in
Treasury
Inflation
Protected
Securities
due
to
their
attractive
valuations
and
ability
to
offset
rising
inflation.
The
investment
adviser
selectively
deployed
some
of
the
Fund’s
cash
position
as
both
yields
and
yield
spreads
reached
what
the
investment
adviser
saw
as
more
attractive
levels,
but
it
reduced
the
portfolio’s
allocation
to
agency
MBS.
The
investment
adviser
tactically
added
duration
on
the
front
end
of
the
yield
curve
in
the
third
quarter
2022.
It
moved
from
an
underweight
to
neutral
on
the
longer
end
on
the
belief
that
this
market
segment
had
begun
to
offer
a
more
favorable
risk/reward
profile
following
the
rise
in
yields.
It
also
actively
rotated
across
select
spread
sectors
to
capitalize
on
an
increasingly
compelling
opportunity
set.
The
investment
adviser
favored
U.S.
investment-grade
corporates
for
their
attractive
valuations,
and
tactically
added
to
agency
MBS.
The
investment
adviser
also
rotated
opportunistically
into
high-quality
securitized
assets
given
their
attractive
yields.
Describe
portfolio
positioning
at
period
end.
The
Fund
held
a
neutral
duration
positioning
relative
to
the
index.
It
was
overweight
in
investment-grade
corporate
bonds,
with
a
focus
on
short-term
issues,
and
it
favored
higher-quality
securities
in
collateralized
mortgage
obligations
and
commercial
mortgage-backed
securities.
The
investment
adviser
remained
cautious
on
the
emerging
markets,
and
maintained
a
limited
allocation
to
high
yield.
Within
high
yield,
the
investment
adviser
continued
to
emphasize
the
higher-quality
segments
of
the
asset
class.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Fund
Summary
as
of
September
30,
2022
(continued)
11
Fund
Summary
BlackRock
Sustainable
Total
Return
Fund
GROWTH
OF
$10,000
INVESTMENT
The
Fund
commenced
operations
on
October
18,
2021.
Performance
N/A
-
Not
applicable
as
share
class
and
index
do
not
have
a
sales
charge.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
(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
typically
invests
more
than
90%
of
its
assets
in
a
diversified
portfolio
of
fixed-income
securities.
(c)
Bloomberg
U.S.
Aggregate
Bond
Index,
a
broad-based
flagship
benchmark
that
measures
the
investment
grade,
U.S.
dollar-denominated,
fixed-rate
taxable
bond
market.
Total
Returns
(a)
Since
Inception
(b)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
Without
Sales
Charge
With
Sales
Charge
Institutional
..........................................................................
3.72‌%
2.22‌%
(16.16‌)%
N/A‌
Investor
A
...........................................................................
3.30‌
1.90‌
(16.38‌)
(19.73‌)%
Class
K
............................................................................
3.76‌
2.42‌
(16.12‌)
N/A‌
Bloomberg
U.S.
Aggregate
Bond
Index
.....................................................
—‌
—‌
(14.44‌)
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees
.
(b)
The
Fund
commenced
operations
on
October
18,
2021.
Fund
Summary
as
of
September
30,
2022
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
12
BlackRock
Sustainable
Total
Return
Fund
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Portfolio
Information
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(04/01/22)
Ending
Account
Value
(09/30/22)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
897.40‌
$
2.05‌
$
1,000.00‌
$
1,022.91‌
$
2.18‌
0.43‌%
Investor
A
................................
1,000.00‌
896.10‌
3.37‌
1,000.00‌
1,021.51‌
3.60‌
0.71‌
Class
K
..................................
1,000.00‌
897.60‌
1.86‌
1,000.00‌
1,023.11‌
1.98‌
0.39‌
(a)
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).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
U.S.
Government
Sponsored
Agency
Securities
............
36.2‌
%
Corporate
Bonds
.................................
31.9‌
Asset-Backed
Securities
............................
12.6‌
U.S.
Treasury
Obligations
...........................
7.8‌
Non-Agency
Mortgage-Backed
Securities
................
5.7‌
Foreign
Government
Obligations
......................
3.5‌
Foreign
Agency
Obligations
..........................
1.6‌
Municipal
Bonds
.................................
0.5‌
Preferred
Securities
...............................
0.2‌
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b
)
Percent
of
Total
Investments
(a)
AAA/Aaa
(c
)
......................................
51.7‌
%
AA/Aa
.........................................
4.8‌
A
............................................
11.4‌
BBB/Baa
.......................................
21.6‌ 
BB/Ba
.........................................
0.9‌
B
............................................
0.4‌
CC/Ca
........................................
0.4‌
NR
...........................................
8.8‌
(a)
Excludes
short-term
securities,
options
purchased,
options
written
and
TBA
sale
commitments.
(b)
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.
(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.
About
Fund
Performance
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.
Investor
A
Shares
are
subject
to
a
maximum
initial
sales
charge
(front-end
load)
of
4.00%
for
BlackRock
Sustainable
High
Yield
Bond
Fund
and
BlackRock
Sustainable
Total
Return
Fund
and
2.25%
for
BlackRock
Sustainable
Low
Duration
Bond
Fund
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.
Past
performance
is
not
an
indication
of
future
results.
Financial
markets
have
experienced
extreme
volatility
and
trading
in
many
instruments
has
been
disrupted.
These
circumstances
may
continue
for
an
extended
period
of
time
and
may
continue
to
affect
adversely
the
value
and
liquidity
of each
Fund's
investments.
As
a
result,
current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Refer
to
blackrock.com 
to
obtain
performance
data
current
to
the
most
recent
month-end.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Figures
shown
in
the
performance
table(s) assume
reinvestment
of
all
distributions,
if
any,
at
net
asset
value
("NAV")
on
the
ex-dividend
date
or
payable
date,
as
applicable.
Investment
return
and
principal
value
of
shares
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Distributions
paid
to
each
class
of
shares
will
vary
because
of
the
different
levels
of
service,
distribution
and
transfer
agency
fees
applicable
to
each
class,
which
are
deducted
from
the
income
available
to
be
paid
to
shareholders. 
BlackRock
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(s)
and/or
reimbursement(s),
each
Fund's
performance
would
have
been
lower.
With
respect
to
each
Fund's
voluntary
waiver(s),
if
any,
the
Manager
is
under
no
obligation
to
waive
and/or
reimburse
or
to
continue
waiving
and/or
reimbursing
its
fees
and
such
voluntary
waiver(s)
may
be
reduced
or
discontinued
at
any
time. With
respect
to
each
Fund's
contractual
waiver(s),
if
any,
the
Manager
is
under
no
obligation
to
continue
waiving
and/or
reimbursing
its
fees
after
the
applicable
termination
date
of
such agreement.
See
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. 
Disclosure
of
Expenses
2022
BlackRock
Annual
Report
to
Shareholdetrs
14
Shareholders
of
each
Fund
may
incur
the
following
charges:
(a)
transactional
expenses;
and
(b)
operating
expenses,
including
investment
advisory
fees, service
and
distribution
fees,
including
12b-1
fees,
acquired
fund
fees
and
expenses, and
other
fund
expenses.
The
expense
examples shown
(which are
based
on
a
hypothetical
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
through
the
end
of
the
period) are
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in each
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
mutual
funds.
The
expense
examples
provide
information
about
actual
account
values
and
actual
expenses.
Annualized
expense
ratios
reflect
contractual
and
voluntary
fee
waivers,
if
any.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their
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.
Derivative
Financial
Instruments
The
Funds
may
invest
in
various
derivative
financial
instruments.
These
instruments
are
used
to
obtain
exposure
to
a
security,
commodity,
index,
market,
and/or
other
assets
without
owning
or
taking
physical
custody
of
securities,
commodities
and/or
other
referenced
assets
or
to
manage
market,
equity,
credit,
interest
rate,
foreign
currency
exchange
rate,
commodity
and/or
other
risks.
Derivative
financial
instruments
may
give
rise
to
a
form
of
economic
leverage
and
involve
risks,
including
the
imperfect
correlation
between
the
value
of
a
derivative
financial
instrument
and
the
underlying
asset,
possible
default
of
the
counterparty
to
the
transaction
or
illiquidity
of
the
instrument.
Pursuant
to
Rule
18f-4
under
the
1940
Act,
among
other
things,
the
Funds
must
either
use
derivative
financial
instruments
with
embedded
leverage
in
a
limited
manner
or
comply
with
an
outer
limit
on
fund
leverage
risk
based
on
value-at-risk. The
Funds’
successful
use
of
a
derivative
financial
instrument
depends
on
the
investment
adviser’s
ability
to
predict
pertinent
market
movements
accurately,
which
cannot
be
assured.
The
use
of
these
instruments
may
result
in
losses
greater
than
if
they
had
not
been
used,
may
limit
the
amount
of
appreciation a
Fund
can
realize
on
an
investment
and/or
may
result
in
lower
distributions
paid
to
shareholders.
The
Funds’
investments
in
these
instruments,
if
any,
are
discussed
in
detail
in
the
Notes
to
Financial
Statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
15
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
September
30,
2022
Security
Shares
Shares
Value
Common
Stocks
Chemicals
—
0.2%
Diversey
Holdings
Ltd.
(a)
..............
4,106
$
19,955
Element
Solutions,
Inc.
...............
2,979
48,468
68,423
IT
Services
—
0.0%
(a)
Block,
Inc.,
Class
A
.................
259
14,243
Twilio,
Inc.,
Class
A
.................
87
6,015
20,258
Life
Sciences
Tools
&
Services
—
0.2%
Syneos
Health,
Inc.
(a)
................
1,318
62,144
Media
—
0.0%
Clear
Channel
Outdoor
Holdings,
Inc.
(a)
....
14,837
20,327
Oil,
Gas
&
Consumable
Fuels
—
0.1%
Occidental
Petroleum
Corp.
(b)
...........
910
55,919
Road
&
Rail
—
0.1%
Uber
Technologies,
Inc.
(a)
.............
939
24,883
Total
Common
Stocks
—
0.6%
(Cost:
$388,325)
................................
251,954
Par
(000)
Par
(000)
Corporate
Bonds
Aerospace
&
Defense
—
2.8%
Bombardier,
Inc.
(c)
7.13%,
06/15/26
.................
USD
239
219,204
7.88%,
04/15/27
.................
124
114,080
6.00%,
02/15/28
.................
59
49,364
Maxar
Technologies,
Inc.,
7.75%,
06/15/27
(c)
20
18,797
TransDigm,
Inc.
6.25%,
03/15/26
(c)
................
522
506,340
4.63%,
01/15/29
.................
49
39,446
4.88%,
05/01/29
.................
68
54,965
Triumph
Group,
Inc.,
8.88%,
06/01/24
(c)
...
129
127,438
1,129,634
Airlines
—
2.1%
(c)
American
Airlines,
Inc.
11.75%,
07/15/25
................
200
208,868
5.50%,
04/20/26
.................
9
8,453
5.75%,
04/20/29
.................
303
264,678
United
Airlines,
Inc.
4.38%,
04/15/26
.................
228
203,490
4.63%,
04/15/29
.................
185
153,076
838,565
Auto
Components
—
2.1%
Clarios
Global
LP
(c)
6.75%,
05/15/25
.................
93
91,069
6.25%,
05/15/26
.................
149
142,295
8.50%,
05/15/27
.................
531
506,834
Goodyear
Tire
&
Rubber
Co.
(The)
9.50%,
05/31/25
.................
123
127,613
5.63%,
04/30/33
.................
2
1,602
869,413
Automobiles
—
0.8%
Ford
Motor
Co.
3.25%,
02/12/32
.................
315
226,904
6.10%,
08/19/32
.................
53
46,725
4.75%,
01/15/43
.................
42
27,829
Security
Par
(000)
Par
(000)
Value
Automobiles
(continued)
Thor
Industries,
Inc.,
4.00%,
10/15/29
(c)
...
USD
26
$
19,540
320,998
Building
Products
—
0.7%
(c)
Advanced
Drainage
Systems,
Inc.
5.00%,
09/30/27
.................
2
1,839
6.38%,
06/15/30
.................
180
174,393
Camelot
Return
Merger
Sub,
Inc.,
8.75%,
08/01/28
.....................
48
39,562
Masonite
International
Corp.,
5.38%,
02/01/28
3
2,654
Standard
Industries,
Inc.
4.75%,
01/15/28
.................
5
4,224
4.38%,
07/15/30
.................
51
39,015
3.38%,
01/15/31
.................
37
26,022
287,709
Capital
Markets
—
0.4%
(c)
AG
TTMT
Escrow
Issuer
LLC,
8.63%,
09/30/27
33
31,020
Compass
Group
Diversified
Holdings
LLC,
5.25%,
04/15/29
................
47
36,882
MSCI,
Inc.
3.63%,
09/01/30
.................
52
42,785
3.63%,
11/01/31
.................
39
31,291
3.25%,
08/15/33
.................
15
11,584
153,562
Chemicals
—
3.2%
Ashland
LLC,
3.38%,
09/01/31
(c)
........
157
121,348
Avient
Corp.,
7.13%,
08/01/30
(c)
........
38
35,071
Axalta
Coating
Systems
LLC
(c)
4.75%,
06/15/27
.................
150
133,625
3.38%,
02/15/29
.................
350
274,383
Diamond
BC
BV,
4.63%,
10/01/29
(c)
......
80
55,666
Element
Solutions,
Inc.,
3.88%,
09/01/28
(c)
.
182
146,546
HB
Fuller
Co.,
4.00%,
02/15/27
........
47
42,486
Herens
Holdco
SARL,
4.75%,
05/15/28
(c)
..
200
160,000
Ingevity
Corp.,
3.88%,
11/01/28
(c)
.......
25
20,670
Kobe
U.S.
Midco
2,
Inc.,
9.25%,
11/01/26
(c)(d)
57
45,030
Minerals
Technologies,
Inc.,
5.00%,
07/01/28
(c)
77
67,015
WR
Grace
Holdings
LLC,
5.63%,
08/15/29
(c)
272
204,000
1,305,840
Commercial
Services
&
Supplies
—
2.8%
ADT
Security
Corp.
(The)
(c)
4.13%,
08/01/29
.................
3
2,490
4.88%,
07/15/32
.................
28
22,581
Allied
Universal
Holdco
LLC
(c)
6.63%,
07/15/26
.................
180
160,425
9.75%,
07/15/27
.................
160
131,517
4.63%,
06/01/28
.................
200
154,064
APi
Group
DE,
Inc.
(c)
4.13%,
07/15/29
.................
19
15,057
4.75%,
10/15/29
.................
24
19,888
APX
Group,
Inc.
(c)
6.75%,
02/15/27
.................
26
24,288
5.75%,
07/15/29
.................
80
63,246
Aramark
Services,
Inc.,
5.00%,
02/01/28
(c)
..
95
84,617
Covanta
Holding
Corp.,
5.00%,
09/01/30
..
60
47,025
Garda
World
Security
Corp.,
4.63%,
02/15/27
(c)
22
18,865
GFL
Environmental,
Inc.
(c)
4.00%,
08/01/28
.................
4
3,334
4.75%,
06/15/29
.................
16
13,480
4.38%,
08/15/29
.................
90
75,040
Legends
Hospitality
Holding
Co.
LLC,
5.00%,
02/01/26
(c)
....................
41
35,110
Madison
IAQ
LLC,
5.88%,
06/30/29
(c)
.....
90
62,690
Nielsen
Finance
LLC,
5.88%,
10/01/30
(c)
...
78
77,678
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
16
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Commercial
Services
&
Supplies
(continued)
Prime
Security
Services
Borrower
LLC
(c)
5.75%,
04/15/26
.................
USD
79
$
74,334
6.25%,
01/15/28
.................
50
42,669
1,128,398
Communications
Equipment
—
1.2%
Avaya,
Inc.,
6.13%,
09/15/28
(c)
.........
108
53,730
Ciena
Corp.,
4.00%,
01/31/30
(c)
........
25
20,875
CommScope
Technologies
LLC,
6.00%,
06/15/25
(c)
....................
113
100,395
CommScope,
Inc.
(c)
6.00%,
03/01/26
.................
41
37,750
8.25%,
03/01/27
.................
4
3,305
7.13%,
07/01/28
.................
13
10,035
4.75%,
09/01/29
.................
41
33,442
Nokia
OYJ
4.38%,
06/12/27
.................
45
40,556
6.63%,
05/15/39
.................
96
89,000
Viasat,
Inc.
(c)
5.63%,
09/15/25
.................
29
22,513
5.63%,
04/15/27
.................
25
20,799
6.50%,
07/15/28
.................
7
4,655
Viavi
Solutions,
Inc.,
3.75%,
10/01/29
(c)
...
91
72,807
509,862
Construction
&
Engineering
—
0.1%
(c)
Dycom
Industries,
Inc.,
4.50%,
04/15/29
...
24
20,224
MasTec,
Inc.,
4.50%,
08/15/28
.........
40
34,914
55,138
Consumer
Finance
—
1.6%
Ford
Motor
Credit
Co.
LLC
4.13%,
08/04/25
.................
200
181,510
4.39%,
01/08/26
.................
200
181,021
5.11%,
05/03/29
.................
200
173,540
OneMain
Finance
Corp.
7.13%,
03/15/26
.................
44
39,662
6.63%,
01/15/28
.................
20
17,160
4.00%,
09/15/30
.................
14
9,824
SLM
Corp.,
3.13%,
11/02/26
..........
41
33,939
636,656
Containers
&
Packaging
—
3.4%
ARD
Finance
SA,
6.50%,
06/30/27
(c)
.....
200
136,940
Ardagh
Metal
Packaging
Finance
USA
LLC
(c)
6.00%,
06/15/27
.................
200
188,341
4.00%,
09/01/29
.................
200
146,470
Ball
Corp.
2.88%,
08/15/30
.................
180
138,140
3.13%,
09/15/31
.................
221
166,579
Clydesdale
Acquisition
Holdings,
Inc.
(c)
6.63%,
04/15/29
.................
116
105,553
8.75%,
04/15/30
.................
76
62,854
Crown
Americas
LLC,
4.25%,
09/30/26
...
124
112,329
Graphic
Packaging
International
LLC,
3.50%,
03/15/28
(c)
....................
98
83,332
Sealed
Air
Corp.,
4.00%,
12/01/27
(c)
.....
70
60,575
Trivium
Packaging
Finance
BV,
8.50%,
08/15/27
(c)(e)
...................
228
201,281
1,402,394
Distributors
—
0.1%
(c)
American
Builders
&
Contractors
Supply
Co.,
Inc.,
3.88%,
11/15/29
.............
20
15,666
Resideo
Funding,
Inc.,
4.00%,
09/01/29
...
8
6,448
22,114
Security
Par
(000)
Par
(000)
Value
Diversified
Consumer
Services
—
0.4%
Sotheby's,
5.88%,
06/01/29
(c)
..........
USD
200
$
165,224
Diversified
Financial
Services
—
0.5%
(c)
MPH
Acquisition
Holdings
LLC,
5.50%,
09/01/28
.....................
53
43,748
Sabre
GLBL,
Inc.
9.25%,
04/15/25
.................
32
30,637
7.38%,
09/01/25
.................
72
64,486
Shift4
Payments
LLC,
4.63%,
11/01/26
....
63
57,448
196,319
Diversified
Telecommunication
Services
—
7.1%
Altice
France
SA,
5.50%,
10/15/29
(c)
.....
200
150,477
CCO
Holdings
LLC
6.38%,
09/01/29
(c)
................
168
154,241
4.75%,
03/01/30
(c)
................
33
26,771
4.25%,
02/01/31
(c)
................
25
19,176
4.75%,
02/01/32
(c)
................
86
66,975
4.50%,
05/01/32
.................
11
8,390
4.50%,
06/01/33
(c)
................
25
18,469
4.25%,
01/15/34
(c)
................
103
73,725
Consolidated
Communications,
Inc.,
6.50%,
10/01/28
(c)
....................
58
43,355
Frontier
Communications
Holdings
LLC
(c)
5.88%,
10/15/27
.................
65
58,255
5.00%,
05/01/28
.................
30
25,746
6.75%,
05/01/29
.................
108
89,100
6.00%,
01/15/30
.................
28
21,998
8.75%,
05/15/30
.................
60
60,038
Iliad
Holding
SASU
(c)
6.50%,
10/15/26
.................
200
174,880
7.00%,
10/15/28
.................
294
251,876
Level
3
Financing,
Inc.
(c)
3.40%,
03/01/27
.................
12
10,050
4.63%,
09/15/27
.................
32
26,482
4.25%,
07/01/28
.................
158
123,242
3.63%,
01/15/29
.................
21
15,548
3.75%,
07/15/29
.................
130
95,225
Lumen
Technologies,
Inc.
(c)
5.13%,
12/15/26
.................
101
86,902
4.00%,
02/15/27
.................
39
32,751
4.50%,
01/15/29
.................
16
11,240
5.38%,
06/15/29
.................
232
172,414
Sprint
Capital
Corp.
6.88%,
11/15/28
.................
223
229,132
8.75%,
03/15/32
.................
193
223,639
Switch
Ltd.
(c)
3.75%,
09/15/28
.................
49
48,694
4.13%,
06/15/29
.................
118
116,871
Telecom
Italia
Capital
SA
6.38%,
11/15/33
.................
60
46,646
6.00%,
09/30/34
.................
71
52,910
Zayo
Group
Holdings,
Inc.
(c)
4.00%,
03/01/27
.................
133
106,726
6.13%,
03/01/28
.................
402
282,034
2,923,978
Electric
Utilities
—
2.2%
NextEra
Energy
Operating
Partners
LP,
4.25%,
09/15/24
(c)
....................
233
222,515
NRG
Energy,
Inc.
5.75%,
01/15/28
.................
8
7,383
5.25%,
06/15/29
(c)
................
6
5,250
3.63%,
02/15/31
(c)
................
75
58,500
3.88%,
02/15/32
(c)
................
27
21,061
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
17
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Electric
Utilities
(continued)
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
(c)
....................
USD
674
$
584,325
899,034
Electrical
Equipment
—
0.2%
Vertiv
Group
Corp.,
4.13%,
11/15/28
(c)
....
100
80,500
Electronic
Equipment,
Instruments
&
Components
—
0.3%
Sensata
Technologies,
Inc.,
4.38%,
02/15/30
(c)
122
101,932
Entertainment
—
1.1%
(c)
AMC
Entertainment
Holdings,
Inc.,
7.50%,
02/15/29
.....................
10
7,725
Lions
Gate
Capital
Holdings
LLC,
5.50%,
04/15/29
.....................
124
92,380
Live
Nation
Entertainment,
Inc.
6.50%,
05/15/27
.................
140
134,715
4.75%,
10/15/27
.................
44
38,200
3.75%,
01/15/28
.................
37
31,358
Playtika
Holding
Corp.,
4.25%,
03/15/29
...
64
51,183
WMG
Acquisition
Corp.,
3.88%,
07/15/30
..
99
81,107
436,668
Equity
Real
Estate
Investment
Trusts
(REITs)
—
1.2%
Brookfield
Property
REIT,
Inc.,
4.50%,
04/01/27
(c)
....................
43
35,257
CTR
Partnership
LP,
3.88%,
06/30/28
(c)
...
6
4,935
HAT
Holdings
I
LLC,
3.38%,
06/15/26
(c)
...
106
85,065
Iron
Mountain
Information
Management
Services,
Inc.,
5.00%,
07/15/32
(c)
......
55
42,575
Iron
Mountain,
Inc.
(c)
5.25%,
07/15/30
.................
6
4,965
5.63%,
07/15/32
.................
37
29,600
SBA
Communications
Corp.
3.88%,
02/15/27
.................
175
155,209
3.13%,
02/01/29
.................
70
56,299
Uniti
Group
LP
(c)
4.75%,
04/15/28
.................
49
38,709
6.50%,
02/15/29
.................
63
42,223
494,837
Food
&
Staples
Retailing
—
0.7%
(c)
Albertsons
Cos.,
Inc.
3.25%,
03/15/26
.................
40
35,133
4.88%,
02/15/30
.................
93
78,679
United
Natural
Foods,
Inc.,
6.75%,
10/15/28
46
42,072
US
Foods,
Inc.
6.25%,
04/15/25
.................
78
76,619
4.75%,
02/15/29
.................
47
40,232
4.63%,
06/01/30
.................
5
4,138
276,873
Food
Products
—
2.0%
Chobani
LLC
(c)
7.50%,
04/15/25
.................
79
72,271
4.63%,
11/15/28
.................
109
92,709
Darling
Ingredients,
Inc.,
6.00%,
06/15/30
(c)
.
162
154,174
Kraft
Heinz
Foods
Co.,
5.50%,
06/01/50
...
177
159,225
Lamb
Weston
Holdings,
Inc.
(c)
4.88%,
05/15/28
.................
180
163,283
4.13%,
01/31/30
.................
131
110,857
4.38%,
01/31/32
.................
94
77,668
830,187
Gas
Utilities
—
0.0%
Suburban
Propane
Partners
LP,
5.00%,
06/01/31
(c)
....................
16
13,133
Security
Par
(000)
Par
(000)
Value
Health
Care
Equipment
&
Supplies
—
1.9%
Avantor
Funding,
Inc.
(c)
4.63%,
07/15/28
.................
USD
124
$
110,353
3.88%,
11/01/29
.................
43
34,925
Embecta
Corp.,
6.75%,
02/15/30
(c)
......
36
33,236
Garden
Spinco
Corp.,
8.63%,
07/20/30
(c)
...
46
47,524
Hologic,
Inc.,
3.25%,
02/15/29
(c)
........
221
180,731
Medline
Borrower
LP
(c)
3.88%,
04/01/29
.................
13
10,422
5.25%,
10/01/29
.................
263
198,565
Teleflex,
Inc.
4.63%,
11/15/27
.................
3
2,702
4.25%,
06/01/28
(c)
................
183
159,168
777,626
Health
Care
Providers
&
Services
—
4.1%
Acadia
Healthcare
Co.,
Inc.,
5.50%,
07/01/28
(c)
26
23,726
AdaptHealth
LLC,
6.13%,
08/01/28
(c)
.....
45
40,307
AHP
Health
Partners,
Inc.,
5.75%,
07/15/29
(c)
115
89,125
Cano
Health
LLC,
6.25%,
10/01/28
(c)
.....
27
25,504
Centene
Corp.
2.45%,
07/15/28
.................
73
59,438
3.00%,
10/15/30
.................
263
208,280
2.50%,
03/01/31
.................
88
66,333
2.63%,
08/01/31
.................
89
67,077
Community
Health
Systems,
Inc.
(c)
6.00%,
01/15/29
.................
147
108,043
5.25%,
05/15/30
.................
15
10,444
Encompass
Health
Corp.
4.50%,
02/01/28
.................
109
93,358
4.75%,
02/01/30
.................
9
7,404
4.63%,
04/01/31
.................
138
109,055
HCA,
Inc.,
4.63%,
03/15/52
(c)
..........
50
37,555
HealthEquity,
Inc.,
4.50%,
10/01/29
(c)
.....
128
108,127
LifePoint
Health,
Inc.,
5.38%,
01/15/29
(c)
...
66
46,016
Molina
Healthcare,
Inc.
(c)
4.38%,
06/15/28
.................
24
21,660
3.88%,
11/15/30
.................
10
8,393
3.88%,
05/15/32
.................
18
14,744
Option
Care
Health,
Inc.,
4.38%,
10/31/29
(c)
.
56
47,320
Owens
&
Minor,
Inc.,
6.63%,
04/01/30
(c)
...
8
7,040
Pediatrix
Medical
Group,
Inc.,
5.38%,
02/15/30
(c)
....................
118
97,793
Surgery
Center
Holdings,
Inc.
(c)
6.75%,
07/01/25
.................
111
102,580
10.00%,
04/15/27
................
130
126,424
Tenet
Healthcare
Corp.
(c)
4.88%,
01/01/26
.................
51
47,393
6.25%,
02/01/27
.................
25
23,329
5.13%,
11/01/27
.................
25
22,432
6.13%,
10/01/28
.................
35
30,663
4.25%,
06/01/29
.................
20
16,565
6.13%,
06/15/30
.................
5
4,580
1,670,708
Hotels,
Restaurants
&
Leisure
—
4.9%
1011778
BC
ULC
(c)
3.88%,
01/15/28
.................
20
17,404
4.38%,
01/15/28
.................
82
71,053
4.00%,
10/15/30
.................
20
15,752
Boyne
USA,
Inc.,
4.75%,
05/15/29
(c)
.....
110
92,151
Caesars
Entertainment,
Inc.
(c)
6.25%,
07/01/25
.................
163
157,091
8.13%,
07/01/27
.................
241
230,176
4.63%,
10/15/29
.................
159
121,489
Caesars
Resort
Collection
LLC,
5.75%,
07/01/25
(c)
....................
92
88,771
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
18
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
CDI
Escrow
Issuer,
Inc.,
5.75%,
04/01/30
(c)
.
USD
144
$
125,757
Cedar
Fair
LP,
5.50%,
05/01/25
(c)
.......
95
91,383
Churchill
Downs,
Inc.,
4.75%,
01/15/28
(c)
...
10
8,651
Fertitta
Entertainment
LLC
(c)
4.63%,
01/15/29
.................
23
19,033
6.75%,
01/15/30
.................
7
5,316
Hilton
Domestic
Operating
Co.,
Inc.
5.75%,
05/01/28
(c)
................
52
48,620
3.75%,
05/01/29
(c)
................
66
54,502
4.88%,
01/15/30
.................
111
96,570
4.00%,
05/01/31
(c)
................
55
44,458
3.63%,
02/15/32
(c)
................
18
13,786
MajorDrive
Holdings
IV
LLC,
6.38%,
06/01/29
(c)
67
46,193
Merlin
Entertainments
Ltd.,
5.75%,
06/15/26
(c)
200
186,169
MGM
Resorts
International,
5.75%,
06/15/25
90
86,010
Midwest
Gaming
Borrower
LLC,
4.88%,
05/01/29
(c)
....................
53
43,660
Scientific
Games
International,
Inc.,
7.25%,
11/15/29
(c)
....................
44
40,951
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
(c)
33
32,986
Vail
Resorts,
Inc.,
6.25%,
05/15/25
(c)
.....
93
91,737
Wyndham
Hotels
&
Resorts,
Inc.,
4.38%,
08/15/28
(c)
....................
71
62,411
Wynn
Resorts
Finance
LLC,
5.13%,
10/01/29
(c)
65
52,533
Yum!
Brands,
Inc.
4.75%,
01/15/30
(c)
................
85
74,282
5.38%,
04/01/32
.................
6
5,320
2,024,215
Household
Durables
—
0.8%
Ashton
Woods
USA
LLC,
4.63%,
08/01/29
(c)
25
18,151
Brookfield
Residential
Properties,
Inc.,
5.00%,
06/15/29
(c)
....................
97
71,806
CD&R
Smokey
Buyer,
Inc.,
6.75%,
07/15/25
(c)
68
61,637
KB
Home,
7.25%,
07/15/30
...........
15
13,613
SWF
Escrow
Issuer
Corp.,
6.50%,
10/01/29
(c)
71
42,068
Taylor
Morrison
Communities,
Inc.,
5.88%,
06/15/27
(c)
....................
66
61,462
Tempur
Sealy
International,
Inc.
(c)
4.00%,
04/15/29
.................
19
14,972
3.88%,
10/15/31
.................
47
34,428
TRI
Pointe
Homes,
Inc.,
5.25%,
06/01/27
..
22
19,023
337,160
Household
Products
—
0.2%
(c)
Energizer
Holdings,
Inc.
6.50%,
12/31/27
.................
28
24,855
4.75%,
06/15/28
.................
12
9,508
Spectrum
Brands,
Inc.,
5.00%,
10/01/29
...
42
33,410
67,773
Independent
Power
and
Renewable
Electricity
Producers
—
1.8%
Clearway
Energy
Operating
LLC
(c)
4.75%,
03/15/28
.................
730
649,992
3.75%,
01/15/32
.................
86
66,670
716,662
Insurance
—
2.8%
(c)
Alliant
Holdings
Intermediate
LLC
4.25%,
10/15/27
.................
157
134,106
6.75%,
10/15/27
.................
317
273,187
5.88%,
11/01/29
.................
282
229,047
AmWINS
Group,
Inc.,
4.88%,
06/30/29
....
21
17,431
GTCR
AP
Finance,
Inc.,
8.00%,
05/15/27
..
24
22,079
HUB
International
Ltd.,
7.00%,
05/01/26
...
113
107,171
NFP
Corp.
4.88%,
08/15/28
.................
120
102,398
6.88%,
08/15/28
.................
294
229,320
Security
Par
(000)
Par
(000)
Value
Insurance
(continued)
7.50%,
10/01/30
.................
USD
24
$
22,773
Ryan
Specialty
Group
LLC,
4.38%,
02/01/30
32
27,140
1,164,652
Interactive
Media
&
Services
—
0.2%
Twitter,
Inc.
(c)
3.88%,
12/15/27
.................
55
51,575
5.00%,
03/01/30
.................
39
37,374
88,949
Internet
&
Direct
Marketing
Retail
—
0.3%
(c)
ANGI
Group
LLC,
3.88%,
08/15/28
......
49
34,560
Go
Daddy
Operating
Co.
LLC,
3.50%,
03/01/29
77
62,977
Match
Group
Holdings
II
LLC,
3.63%,
10/01/31
22
16,610
114,147
IT
Services
—
2.0%
Ahead
DB
Holdings
LLC,
6.63%,
05/01/28
(c)
.
57
48,586
Black
Knight
InfoServ
LLC,
3.63%,
09/01/28
(c)
96
81,840
Block,
Inc.,
3.50%,
06/01/31
..........
322
249,652
Booz
Allen
Hamilton,
Inc.,
4.00%,
07/01/29
(c)
93
79,567
Gartner,
Inc.
(c)
4.50%,
07/01/28
.................
57
50,969
3.63%,
06/15/29
.................
38
31,635
3.75%,
10/01/30
.................
45
36,839
Northwest
Fiber
LLC
(c)
4.75%,
04/30/27
.................
60
52,200
6.00%,
02/15/28
.................
75
58,137
Twilio,
Inc.,
3.88%,
03/15/31
..........
170
133,445
822,870
Leisure
Products
—
0.3%
Mattel,
Inc.
6.20%,
10/01/40
.................
53
49,888
5.45%,
11/01/41
.................
62
51,943
101,831
Life
Sciences
Tools
&
Services
—
0.3%
(c)
Charles
River
Laboratories
International,
Inc.
4.25%,
05/01/28
.................
32
27,868
4.00%,
03/15/31
.................
19
15,322
Syneos
Health,
Inc.,
3.63%,
01/15/29
....
111
88,387
131,577
Machinery
—
0.7%
Mueller
Water
Products,
Inc.,
4.00%,
06/15/29
(c)
63
53,614
Terex
Corp.,
5.00%,
05/15/29
(c)
........
63
54,069
Titan
International,
Inc.,
7.00%,
04/30/28
..
23
20,868
TK
Elevator
US
Newco,
Inc.,
5.25%,
07/15/27
(c)
200
170,042
298,593
Media
—
5.6%
Altice
Financing
SA,
5.75%,
08/15/29
(c)
....
200
153,044
AMC
Networks,
Inc.,
4.25%,
02/15/29
....
39
28,835
Cable
One,
Inc.
1.13%,
03/15/28
(f)
................
147
105,840
4.00%,
11/15/30
(c)
................
218
169,693
Charter
Communications
Operating
LLC
5.25%,
04/01/53
.................
55
42,117
5.50%,
04/01/63
.................
55
41,553
Clear
Channel
Outdoor
Holdings,
Inc.
(c)
5.13%,
08/15/27
.................
160
135,158
7.75%,
04/15/28
.................
156
117,780
7.50%,
06/01/29
.................
165
119,625
CSC
Holdings
LLC,
4.13%,
12/01/30
(c)
....
200
149,440
Directv
Financing
LLC,
5.88%,
08/15/27
(c)
..
42
36,209
GCI
LLC,
4.75%,
10/15/28
(c)
..........
21
17,435
LCPR
Senior
Secured
Financing
DAC,
5.13%,
07/15/29
(c)
....................
200
150,613
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
19
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Media
(continued)
Liberty
Broadband
Corp.,
2.75%,
09/30/50
(c)(f)
USD
184
$
176,405
Outfront
Media
Capital
LLC,
5.00%,
08/15/27
(c)
15
13,103
Radiate
Holdco
LLC
(c)
4.50%,
09/15/26
.................
99
81,203
6.50%,
09/15/28
.................
196
136,710
Sinclair
Television
Group,
Inc.,
4.13%,
12/01/30
(c)
....................
65
48,913
Sirius
XM
Radio,
Inc.
(c)
3.13%,
09/01/26
.................
92
80,797
5.00%,
08/01/27
.................
11
10,092
5.50%,
07/01/29
.................
28
25,186
3.88%,
09/01/31
.................
37
28,691
Telenet
Finance
Luxembourg
Notes
SARL,
5.50%,
03/01/28
(c)
...............
200
173,454
Univision
Communications,
Inc.
(c)
6.63%,
06/01/27
.................
36
33,974
7.38%,
06/30/30
.................
48
45,806
Videotron
Ltd.,
3.63%,
06/15/29
(c)
.......
32
25,920
Ziggo
Bond
Co.
BV,
5.13%,
02/28/30
(c)
....
200
143,000
2,290,596
Metals
&
Mining
—
4.2%
(c)
Big
River
Steel
LLC,
6.63%,
01/31/29
....
707
650,708
Constellium
SE
5.63%,
06/15/28
.................
250
205,039
3.75%,
04/15/29
.................
250
182,520
FMG
Resources
August
2006
Pty.
Ltd.,
6.13%,
04/15/32
.....................
121
103,969
Novelis
Corp.
3.25%,
11/15/26
.................
380
317,198
4.75%,
01/30/30
.................
14
11,480
3.88%,
08/15/31
.................
346
258,088
1,729,002
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.0%
Starwood
Property
Trust,
Inc.,
4.38%,
01/15/27
(c)
....................
18
15,345
Multiline
Retail
—
0.2%
NMG
Holding
Co.,
Inc.,
7.13%,
04/01/26
(c)
..
75
68,914
Oil,
Gas
&
Consumable
Fuels
—
3.0%
Antero
Midstream
Partners
LP,
5.75%,
03/01/27
(c)
....................
140
129,481
EnLink
Midstream
Partners
LP
4.85%,
07/15/26
.................
23
21,123
5.60%,
04/01/44
.................
52
39,556
ITT
Holdings
LLC,
6.50%,
08/01/29
(c)
.....
98
76,026
New
Fortress
Energy,
Inc.
(c)
6.75%,
09/15/25
.................
113
107,034
6.50%,
09/30/26
.................
185
170,921
Occidental
Petroleum
Corp.
8.00%,
07/15/25
.................
2
2,120
5.88%,
09/01/25
.................
2
2,006
5.55%,
03/15/26
.................
228
228,260
8.88%,
07/15/30
.................
7
7,793
6.63%,
09/01/30
.................
85
86,275
7.50%,
05/01/31
.................
1
1,045
6.45%,
09/15/36
.................
4
4,000
6.20%,
03/15/40
.................
378
365,715
6.60%,
03/15/46
.................
2
2,060
1,243,415
Personal
Products
—
0.0%
Prestige
Brands,
Inc.,
3.75%,
04/01/31
(c)
...
25
19,423
Security
Par
(000)
Par
(000)
Value
Pharmaceuticals
—
0.6%
(c)
Catalent
Pharma
Solutions,
Inc.
3.13%,
02/15/29
.................
USD
80
$
61,700
3.50%,
04/01/30
.................
39
30,682
Organon
&
Co.,
5.13%,
04/30/31
.......
200
163,832
256,214
Professional
Services
—
0.7%
(c)
AMN
Healthcare,
Inc.
4.63%,
10/01/27
.................
25
22,427
4.00%,
04/15/29
.................
73
61,510
CoreLogic,
Inc.,
4.50%,
05/01/28
.......
48
32,640
Dun
&
Bradstreet
Corp.
(The),
5.00%,
12/15/29
89
73,425
Korn
Ferry,
4.63%,
12/15/27
..........
87
76,830
266,832
Real
Estate
Management
&
Development
—
0.7%
(c)
Cushman
&
Wakefield
US
Borrower
LLC,
6.75%,
05/15/28
................
154
142,843
Howard
Hughes
Corp.
(The)
5.38%,
08/01/28
.................
65
53,950
4.38%,
02/01/31
.................
44
31,605
Realogy
Group
LLC,
5.75%,
01/15/29
....
93
67,076
295,474
Road
&
Rail
—
1.1%
(c)
Hertz
Corp.
(The)
4.63%,
12/01/26
.................
30
24,371
5.00%,
12/01/29
.................
24
17,850
NESCO
Holdings
II,
Inc.,
5.50%,
04/15/29
..
48
40,007
Uber
Technologies,
Inc.
7.50%,
09/15/27
.................
146
143,080
6.25%,
01/15/28
.................
11
10,230
4.50%,
08/15/29
.................
186
156,356
Williams
Scotsman
International,
Inc.,
4.63%,
08/15/28
.....................
76
66,496
458,390
Semiconductors
&
Semiconductor
Equipment
—
0.9%
(c)
Entegris
Escrow
Corp.,
4.75%,
04/15/29
...
265
233,419
Entegris,
Inc.
4.38%,
04/15/28
.................
44
37,304
3.63%,
05/01/29
.................
20
15,827
Synaptics,
Inc.,
4.00%,
06/15/29
........
75
60,379
346,929
Software
—
6.3%
(c)
AthenaHealth
Group,
Inc.,
6.50%,
02/15/30
.
160
126,491
Boxer
Parent
Co.,
Inc.,
7.13%,
10/02/25
...
53
51,944
Camelot
Finance
SA,
4.50%,
11/01/26
....
24
21,715
Central
Parent,
Inc.,
7.25%,
06/15/29
.....
112
106,478
Change
Healthcare
Holdings
LLC,
5.75%,
03/01/25
.....................
42
41,746
Clarivate
Science
Holdings
Corp.
3.88%,
07/01/28
.................
352
290,330
4.88%,
07/01/29
.................
193
151,119
Condor
Merger
Sub,
Inc.,
7.38%,
02/15/30
.
239
195,398
Consensus
Cloud
Solutions,
Inc.
6.00%,
10/15/26
.................
17
14,980
6.50%,
10/15/28
.................
15
12,733
Elastic
NV,
4.13%,
07/15/29
..........
151
119,266
Fair
Isaac
Corp.,
4.00%,
06/15/28
.......
119
101,398
MicroStrategy,
Inc.,
6.13%,
06/15/28
.....
65
53,557
NCR
Corp.,
6.13%,
09/01/29
..........
45
38,746
NortonLifeLock,
Inc.
6.75%,
09/30/27
.................
68
65,248
7.13%,
09/30/30
.................
68
65,770
Open
Text
Corp.
3.88%,
02/15/28
.................
88
72,778
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
20
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Software
(continued)
3.88%,
12/01/29
.................
USD
106
$
81,644
Open
Text
Holdings,
Inc.,
4.13%,
02/15/30
.
28
22,361
Picard
Midco,
Inc.,
6.50%,
03/31/29
......
589
497,528
PTC,
Inc.
3.63%,
02/15/25
.................
49
45,645
4.00%,
02/15/28
.................
75
65,594
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
.
98
89,395
Veritas
US,
Inc.,
7.50%,
09/01/25
.......
82
62,799
ZoomInfo
Technologies
LLC,
3.88%,
02/01/29
244
199,089
2,593,752
Specialty
Retail
—
1.8%
(c)
Arko
Corp.,
5.13%,
11/15/29
..........
49
38,220
Asbury
Automotive
Group,
Inc.,
5.00%,
02/15/32
.....................
40
30,802
Carvana
Co.
5.50%,
04/15/27
.................
18
9,810
4.88%,
09/01/29
.................
29
14,138
Group
1
Automotive,
Inc.,
4.00%,
08/15/28
.
48
38,650
GYP
Holdings
III
Corp.,
4.63%,
05/01/29
...
98
74,544
LBM
Acquisition
LLC,
6.25%,
01/15/29
....
23
15,582
Lithia
Motors,
Inc.,
3.88%,
06/01/29
......
43
34,508
PetSmart,
Inc.,
7.75%,
02/15/29
........
250
223,485
Sonic
Automotive,
Inc.,
4.63%,
11/15/29
...
18
14,130
Specialty
Building
Products
Holdings
LLC,
6.38%,
09/30/26
................
14
11,584
SRS
Distribution,
Inc.
4.63%,
07/01/28
.................
100
85,899
6.13%,
07/01/29
.................
90
72,279
6.00%,
12/01/29
.................
103
82,145
745,776
Technology
Hardware,
Storage
&
Peripherals
—
0.0%
Xerox
Corp.,
4.80%,
03/01/35
.........
2
1,303
Textiles,
Apparel
&
Luxury
Goods
—
0.6%
(c)
Crocs,
Inc.,
4.13%,
08/15/31
..........
61
46,432
Kontoor
Brands,
Inc.,
4.13%,
11/15/29
....
30
23,902
Levi
Strauss
&
Co.,
3.50%,
03/01/31
.....
132
102,960
William
Carter
Co.
(The),
5.63%,
03/15/27
..
94
87,884
261,178
Thrifts
&
Mortgage
Finance
—
0.5%
Enact
Holdings,
Inc.,
6.50%,
08/15/25
(c)
...
65
62,120
MGIC
Investment
Corp.,
5.25%,
08/15/28
..
92
82,191
Nationstar
Mortgage
Holdings,
Inc.
(c)
6.00%,
01/15/27
.................
27
23,051
5.75%,
11/15/31
.................
23
16,868
184,230
Trading
Companies
&
Distributors
—
1.3%
Beacon
Roofing
Supply,
Inc.,
4.13%,
05/15/29
(c)
25
20,248
Boise
Cascade
Co.,
4.88%,
07/01/30
(c)
....
61
50,672
Foundation
Building
Materials,
Inc.,
6.00%,
03/01/29
(c)
....................
30
21,895
Herc
Holdings,
Inc.,
5.50%,
07/15/27
(c)
....
62
55,800
Imola
Merger
Corp.,
4.75%,
05/15/29
(c)
....
107
90,270
United
Rentals
North
America,
Inc.,
5.25%,
01/15/30
.....................
66
59,732
WESCO
Distribution,
Inc.,
7.25%,
06/15/28
(c)
226
221,356
519,973
Security
Par
(000)
Par
(000)
Value
Wireless
Telecommunication
Services
—
1.3%
(c)
Connect
Finco
SARL,
6.75%,
10/01/26
....
USD
333
$
291,226
Vmed
O2
UK
Financing
I
plc,
4.75%,
07/15/31
296
228,363
519,589
Total
Corporate
Bonds
—
86.1%
(Cost:
$41,879,501)
..............................
35,212,066
Floating
Rate
Loan
Interests
Airlines
—
0.0%
(d)
AAdvantage
Loyalty
IP
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.75%),
7.46%
,
 04/20/28
5
5,222
Mileage
Plus
Holdings
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
5.25%),
8.78%
,
 06/21/27
8
7,754
12,976
Auto
Components
—
0.4%
Clarios
Global
LP,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
6.37%
,
 04/30/26
(d)
188
177,326
Chemicals
—
0.1%
WR
Grace
Holdings
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
7.44%
,
 09/22/28
(d)
32
29,451
Commercial
Services
&
Supplies
—
0.4%
PECF
USS
Intermediate
Holding
III
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
7.37%
,
 12/15/28
(d)
................
173
147,318
Communications
Equipment
—
0.0%
Viasat,
Inc.,
Term
Loan,
(SOFR
1
Month
+
4.50%),
7.65%
,
 03/02/29
(d)
..........
24
21,043
Containers
&
Packaging
—
0.1%
Clydesdale
Acquisition
Holdings,
Inc.,
1st
Lien
Term
Loan
B,
(SOFR
1
Month
+
4.18%),
7.31%
,
 04/13/29
(d)
................
27
25,365
Diversified
Consumer
Services
—
0.1%
Ascend
Learning
LLC,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
5.75%),
8.87%
,
 12/10/29
(d)
................
29
25,103
Diversified
Telecommunication
Services
—
2.0%
(d)
Altice
France
SA,
Term
Loan
B13,
(LIBOR
USD
3
Month
+
4.00%),
6.91%
,
 08/14/26
(g)
...
188
170,131
Cablevision
Lightpath
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
6.07%
,
 11/30/27
.
99
94,600
Frontier
Communications
Holdings
LLC,
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.75%),
7.44%
,
 05/01/28
.................
197
183,175
Radiate
Holdco
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
6.37%
,
 09/25/26
....
202
186,856
Zayo
Group
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
6.12%
,
 03/09/27
217
180,681
815,443
Food
Products
—
0.0%
Chobani
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
6.62%
,
 10/25/27
(d)
....
7
5,980
Health
Care
Technology
—
0.8%
Verscend
Holding
Corp.,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
4.00%),
7.12%
,
 08/27/25
(d)
338
327,036
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
21
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
—
0.6%
(d)
Caesars
Resort
Collection
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
3.50%),
6.62%
,
 07/21/25
.................
USD
85
$
83,350
Fertitta
Entertainment
LLC,
Term
Loan
B,
(SOFR
1
Month
+
4.00%),
7.03%
,
 01/27/29
173
160,058
243,408
Household
Durables
—
0.1%
SWF
Holdings
I
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
7.60%
,
 10/06/28
(d)
................
73
56,510
Insurance
—
0.9%
(d)
Alliant
Holdings
Intermediate
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
6.37%
,
 05/09/25
.................
100
95,384
Alliant
Holdings
Intermediate
LLC,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
3.50%),
6.49%
,
 11/05/27
.................
23
21,676
AssuredPartners,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
6.62%
,
 02/12/27
....
99
93,319
Hub
International
Ltd.,
Term
Loan
B3,
(LIBOR
USD
3
Month
+
3.25%),
5.98%
,
 04/25/25
148
142,469
352,848
Media
—
1.2%
(d)
Clear
Channel
Outdoor
Holdings,
Inc.,
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.50%),
6.31%
,
 08/21/26
.................
343
305,306
DirectTV
Financing
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
5.00%),
8.12%
,
 08/02/27
182
168,956
474,262
Professional
Services
—
0.3%
(d)
Dun
&
Bradstreet
Corp.
(The),
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
6.33%
,
 02/06/26
.................
89
85,983
Dun
&
Bradstreet
Corp.
(The),
Term
Loan
B2,
(SOFR
1
Month
+
3.25%),
6.28%
,
 01/18/29
43
41,192
127,175
Road
&
Rail
—
0.2%
Uber
Technologies,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.50%),
6.57%
,
 02/25/27
(d)
99
96,009
Software
—
2.3%
(d)
Athenahealth
Group,
Inc.,
Delayed
Draw
Term
Loan,
02/15/29
(h)
.................
50
44,464
Athenahealth
Group,
Inc.,
Term
Loan,
(SOFR
1
Month
+
3.50%),
6.58%
,
 02/15/29
.....
293
261,683
Banff
Guarantor,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
5.50%),
8.62%
,
 02/27/26
.................
96
88,800
Boxer
Parent
Co.,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
6.87%
,
 10/02/25
158
149,614
Central
Parent,
Inc.,
1st
Lien
Term
Loan,
(SOFR
3
Month
+
4.50%),
8.11%
,
 07/06/29
36
34,613
Security
Par
(000)
Par
(000)
Value
Software
(continued)
McAfee
Corp.,
Term
Loan
B1,
(SOFR
1
Month
+
3.75%),
6.87%
,
 03/01/29
..........
USD
91
$
83,107
Sabre
GLBL,
Inc.,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
3.50%),
6.62%
,
 12/17/27
....
9
7,846
Sabre
GLBL,
Inc.,
Term
Loan
B2,
(LIBOR
USD
1
Month
+
3.50%),
6.62%
,
 12/17/27
....
14
12,509
SS&C
Technologies
Holdings,
Inc.,
Term
Loan
B5,
(LIBOR
USD
1
Month
+
1.75%),
4.87%
,
 04/16/25
.................
98
95,378
TIBCO
Software,
Inc.,
Term
Loan
B,
(SOFR
1
Month
+
4.50%),
8.15%
,
 03/30/29
.....
182
163,085
941,099
Textiles,
Apparel
&
Luxury
Goods
—
0.3%
Crocs,
Inc.,
Term
Loan,
(SOFR
6
Month
+
3.50%),
7.20%
-
7.73%
,
 02/20/29
(d)
.....
129
120,946
Trading
Companies
&
Distributors
—
0.3%
SRS
Distribution,
Inc.,
Term
Loan
(d)
(SOFR
3
Month
+
3.50%),
6.18%, 06/02/28
37
33,625
(LIBOR
USD
3
Month
+
3.50%),
6.31%, 06/02/28
...............
100
92,074
125,699
Total
Floating
Rate
Loan
Interests
—
10.1%
(Cost:
$4,444,960)
..............................
4,124,997
Preferred
Securities
Capital
Trusts
—
0.1%
Independent
Power
and
Renewable
Electricity
Producers
—
0.1%
Vistra
Corp.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.74%),
7.00%
(c)(d)(i)
.....................
57
49,762
Total
Preferred
Securities
—
0.1%
(Cost:
$57,000)
................................
49,762
Total
Long-Term
Investments
—
96.9%
(Cost:
$46,769,786)
..............................
39,638,779
Shares
Shares
Short-Term
Securities
Money
Market
Funds
—
2.4%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
2.79%
(j)(k)
..................
1,002,589
1,002,589
Total
Short-Term
Securities
—
2.4%
(Cost:
$1,002,589)
..............................
1,002,589
Total
Investments
—
99.3%
(Cost:
$47,772,375
)
..............................
40,641,368
Other
Assets
Less
Liabilities
—
0.7%
...................
281,139
Net
Assets
—
100.0%
..............................
$
40,922,507
(a)
Non-income
producing
security.
(b)
All
or
a
portion
of
the
security
has
been
pledged
and/or
segregated
as
collateral
in
connection
with
outstanding
exchange-traded
options
written.
(c)
Security
exempt
from
registration
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933,
as
amended.
These
securities
may
be
resold
in
transactions
exempt
from
registration
to
qualified
institutional
investors.
(d)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(e)
Step
coupon
security.
Coupon
rate
will
either
increase
(step-up
bond)
or
decrease
(step-down
bond)
at
regular
intervals
until
maturity.
Interest
rate
shown
reflects
the
rate
currently
in
effect.
(f)
Convertible
security.
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
22
Schedule
of
Investments
(continued)
September
30,
2022
(g)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(h)
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.
(i)
Perpetual
security
with
no
stated
maturity
date.
(j)
Annualized
7-day
yield
as
of
period
end.
(k)
Affiliate
of
the
Fund.
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
year
ended
September
30,
2022
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
09/30/21
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/22
Shares
Held
at
09/30/22
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
...
$
3,166,439
$
—
$
(2,163,850)
(a)
$
—
$
—
$
1,002,589
1,002,589
$
6,113
$
—
—
—
(a)
Represents
net
amount
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.
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
23
Schedule
of
Investments
(continued)
September
30,
2022
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
For
more
information
about
the
Fund’s
investment
risks
regarding
derivative
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Short
Contracts
U.S.
Treasury
10
Year
Note
...................................................
2
12/20/22
$
224
$
10,904
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)
.....
$
—
$
—
$
—
$
—
$
10,904
$
—
$
10,904
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
of
Assets
and
Liabilities,
only
current
day’s
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
For
the
period
ended
September
30,
2022,
the
effect
of
derivative
financial
instruments
in
the
Statements
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from
Futures
contracts
.......................
$
—
$
—
$
22,977
$
—
$
16,535
$
—
$
39,512
Options
purchased
(a)
....................
—
—
3,952
—
—
—
3,952
Options
written
........................
—
—
784
—
—
—
784
$
—
$
—
$
27,713
$
—
$
16,535
$
—
$
44,248
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
10,904
$
—
$
10,904
(a)
Options
purchased
are
included
in
net
realized
gain
(loss)
from
investments
—
unaffiliated.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
short
.................................................................................
$
176,578
Options
Average
value
of
option
contracts
purchased
................................................................................
$
1,110
Average
value
of
option
contracts
written
...................................................................................
$
337
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
24
Schedule
of
Investments
(continued)
September
30,
2022
See
notes
to
financial
statements.
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund’s
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Common
Stocks
.........................................
$
251,954
$
—
$
—
$
251,954
Corporate
Bonds
........................................
—
35,212,066
—
35,212,066
Floating
Rate
Loan
Interests
Airlines
..............................................
—
12,976
—
12,976
Auto
Components
......................................
—
177,326
—
177,326
Chemicals
............................................
—
29,451
—
29,451
Commercial
Services
&
Supplies
.............................
—
147,318
—
147,318
Communications
Equipment
................................
—
21,043
—
21,043
Containers
&
Packaging
..................................
—
25,365
—
25,365
Diversified
Consumer
Services
..............................
—
25,103
—
25,103
Diversified
Telecommunication
Services
........................
—
645,312
170,131
815,443
Food
Products
.........................................
—
5,980
—
5,980
Health
Care
Technology
..................................
—
327,036
—
327,036
Hotels,
Restaurants
&
Leisure
..............................
—
243,408
—
243,408
Household
Durables
.....................................
—
56,510
—
56,510
Insurance
............................................
—
352,848
—
352,848
Media
...............................................
—
474,262
—
474,262
Professional
Services
....................................
—
127,175
—
127,175
Road
&
Rail
...........................................
—
96,009
—
96,009
Software
.............................................
—
941,099
—
941,099
Textiles,
Apparel
&
Luxury
Goods
............................
—
120,946
—
120,946
Trading
Companies
&
Distributors
............................
—
125,699
—
125,699
Preferred
Securities
.......................................
—
49,762
—
49,762
Short-Term
Securities
Money
Market
Funds
......................................
1,002,589
—
—
1,002,589
$
1,254,543
$
39,216,694
$
170,131
$
40,641,368
Derivative
Financial
Instruments
(a)
Assets
Interest
rate
contracts
.......................................
$
10,904
$
—
$
—
$
10,904
(a)
Derivative
financial
instruments
are
futures
contracts.
Futures
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
25
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
AGL
Core
CLO
4
Ltd.,
Series
2020-4A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.07%),
3.78%,
04/20/33
(a)(b)
...............
USD
250
$
242,425
AIG
CLO
LLC,
Series
2018-1A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.12%),
3.83%,
04/20/32
(a)(b)
....................
250
243,600
Anchorage
Capital
CLO
3-R
Ltd.,
Series
2014-3RA,
Class
A,
(LIBOR
USD
3
Month
+
1.05%),
3.84%,
01/28/31
(a)(b)
.........
249
244,456
Arbor
Realty
Commercial
Real
Estate
Notes
Ltd.,
Series
2022-FL2,
Class
A,
(1
Month
CME
Term
SOFR
+
1.85%),
4.70%,
05/15/37
(a)(b)
....................
100
97,846
Ares
LVI
CLO
Ltd.,
Series
2020-56A,
Class
AR,
(LIBOR
USD
3
Month
+
1.16%),
3.94%,
10/25/34
(a)(b)
....................
250
240,568
BA
Credit
Card
Trust,
Series
2022-A1,
Class
A1,
3.53%,
11/15/27
...............
59
57,231
Barings
CLO
Ltd.,
Series
2019-3A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.07%),
3.78%,
04/20/31
(a)(b)
....................
250
243,655
BDS
Ltd.,
Series
2021-FL10,
Class
A,
(LIBOR
USD
1
Month
+
1.35%),
4.34%,
12/16/36
(a)(b)
80
77,800
Beechwood
Park
CLO
Ltd.,
Series
2019-1A,
Class
A1R,
(3
Month
CME
Term
SOFR
+
1.30%),
3.78%,
01/17/35
(a)(b)
.........
250
238,615
BlueMountain
CLO
XXII
Ltd.,
Series
2018-22A,
Class
A1,
(LIBOR
USD
3
Month
+
1.08%),
3.59%,
07/15/31
(a)(b)
...............
250
242,724
BMW
Vehicle
Owner
Trust,
Series
2022-A,
Class
A3,
3.21%,
08/25/26
..........
207
201,435
Capital
One
Multi-Asset
Execution
Trust,
Series
2022-A2,
Class
A,
3.49%,
05/15/27
.....
39
37,812
CIFC
Funding
Ltd.,
Series
2021-5A,
Class
A,
(LIBOR
USD
3
Month
+
1.14%),
3.65%,
07/15/34
(a)(b)
....................
250
239,346
College
Avenue
Student
Loans
LLC,
Series
2021-C,
Class
A1,
(LIBOR
USD
1
Month
+
0.90%),
3.98%,
07/26/55
(a)(b)
.........
89
85,813
Ford
Credit
Auto
Owner
Trust,
Series
2022-B,
Class
A4,
3.93%,
08/15/27
..........
44
42,995
FS
Rialto
Issuer
LLC
(a)(b)
Series
2022-FL4,
Class
A,
(SOFR
30
Day
Average
+
1.90%),
4.18%,
01/19/39
..
100
97,670
Series
2022-FL5,
Class
A,
(1
Month
CME
Term
SOFR
+
2.30%),
5.32%,
06/19/37
100
98,257
Series
2022-FL6,
Class
A,
(1
Month
CME
Term
SOFR
+
2.58%),
4.58%,
08/17/37
100
98,964
GM
Financial
Consumer
Automobile
Receivables
Trust,
Series
2022-3,
Class
A3,
3.64%,
04/16/27
.................
154
150,609
GoodLeap
Sustainable
Home
Solutions
Trust
(b)
Series
2021-3CS,
Class
A,
2.10%,
05/20/48
168
137,599
Series
2021-5CS,
Class
A,
2.31%,
10/20/48
86
71,184
Series
2022-1GS,
Class
A,
2.70%,
01/20/49
47
39,215
Series
2022-2CS,
Class
A,
4.00%,
04/20/49
24
22,037
Series
2022-3CS,
Class
A,
4.95%,
07/20/49
57
54,810
Hyundai
Auto
Receivables
Trust,
Series
2022-
B,
Class
A3,
3.72%,
11/16/26
.........
55
53,942
Loanpal
Solar
Loan
Ltd.,
Series
2021-1GS,
Class
A,
2.29%,
01/20/48
(b)
..........
141
115,601
Madison
Park
Funding
XXXVII
Ltd.,
Series
2019-37A,
Class
AR,
(LIBOR
USD
3
Month
+
1.07%),
3.58%,
07/15/33
(a)(b)
........
250
242,144
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
MF1
Ltd.,
Series
2022-FL8,
Class
A,
(SOFR
30
Day
Average
+
1.35%),
3.63%,
02/19/37
(a)(b)
USD
100
$
96,879
Mosaic
Solar
Loan
Trust
(b)
Series
2021-1A,
Class
A,
1.51%,
12/20/46
101
79,057
Series
2022-1A,
Class
A,
2.64%,
01/20/53
93
80,872
Mosaic
Solar
Loans
LLC,
Series
2017-2A,
Class
C,
2.00%,
06/22/43
(b)
..........
25
24,598
Navient
Private
Education
Refi
Loan
Trust
(b)
Series
2021-CA,
Class
A,
1.06%,
10/15/69
135
115,803
Series
2021-GA,
Class
A,
1.58%,
04/15/70
106
91,485
Series
2022-A,
Class
A,
2.23%,
07/15/70
.
138
121,963
Series
2022-BA,
Class
A,
4.16%,
10/15/70
121
116,589
Nelnet
Student
Loan
Trust,
Series
2021-DA,
Class
AFX,
1.63%,
04/20/62
(b)
........
118
106,481
Neuberger
Berman
Loan
Advisers
CLO
26
Ltd.,
Series
2017-26A,
Class
AR,
(LIBOR
USD
3
Month
+
0.92%),
3.66%,
10/18/30
(a)(b)
...
250
244,821
OneMain
Financial
Issuance
Trust,
Series
2022-S1,
Class
A,
4.13%,
05/14/35
(b)
...
120
113,980
Oportun
Issuance
Trust,
Series
2021-C,
Class
A,
2.18%,
10/08/31
(b)
..............
100
88,264
Palmer
Square
CLO
Ltd.,
Series
2013-2A,
Class
A1A3,
(LIBOR
USD
3
Month
+
1.00%),
3.74%,
10/17/31
(a)(b)
.........
250
243,118
PFS
Financing
Corp.,
Series
2022-D,
Class
A,
4.27%,
08/15/27
(b)
................
140
135,583
Prodigy
Finance
DAC,
Series
2021-1A,
Class
A,
(LIBOR
USD
1
Month
+
1.25%),
4.33%,
07/25/51
(a)(b)
....................
132
128,914
Romark
CLO
II
Ltd.,
Series
2018-2A,
Class
A1,
(LIBOR
USD
3
Month
+
1.18%),
3.96%,
07/25/31
(a)(b)
....................
250
243,386
SMB
Private
Education
Loan
Trust
(b)
Series
2022-B,
Class
A1B,
(SOFR
30
Day
Average
+
1.45%),
3.74%,
02/16/55
(a)
.
190
187,227
Series
2022-C,
Class
A1A,
4.48%,
05/16/50
100
95,838
Series
2022-C,
Class
A1B,
(SOFR
30
Day
Average
+
1.85%),
0.88%,
05/16/50
(a)
.
100
99,703
SoFi
Professional
Loan
Program
LLC
(b)
Series
2019-A,
Class
A2FX,
3.69%,
06/15/48
....................
178
172,727
Series
2019-B,
Class
A2FX,
3.09%,
08/17/48
....................
43
40,485
SoFi
Professional
Loan
Program
Trust
(b)
Series
2020-A,
Class
A2FX,
2.54%,
05/15/46
....................
73
68,300
Series
2021-B,
Class
AFX,
1.14%,
02/15/47
127
106,987
Sunnova
Sol
IV
Issuer
LLC,
Series
2022-A,
Class
A,
2.79%,
02/22/49
(b)
..........
95
84,047
Total
Asset-Backed
Securities
—
14.3%
(Cost:
$6,957,407)
..............................
6,605,460
Corporate
Bonds
Aerospace
&
Defense
—
0.2%
(b)
Bombardier,
Inc.,
7.13%,
06/15/26
......
18
16,509
Maxar
Technologies,
Inc.,
7.75%,
06/15/27
.
2
1,880
TransDigm,
Inc.
8.00%,
12/15/25
.................
9
9,128
6.25%,
03/15/26
.................
65
63,050
Triumph
Group,
Inc.,
8.88%,
06/01/24
....
13
12,842
103,409
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
26
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Airlines
—
0.2%
(b)
American
Airlines,
Inc.
11.75%,
07/15/25
................
USD
13
$
13,576
5.50%,
04/20/26
.................
40
37,567
United
Airlines,
Inc.,
4.38%,
04/15/26
.....
40
35,700
86,843
Auto
Components
—
0.1%
Clarios
Global
LP,
6.25%,
05/15/26
(b)
.....
65
62,075
Goodyear
Tire
&
Rubber
Co.
(The),
9.50%,
05/31/25
.....................
8
8,300
70,375
Banks
—
9.2%
Banco
Bilbao
Vizcaya
Argentaria
SA,
0.38%,
10/02/24
(c)
....................
EUR
100
92,231
Banco
Santander
SA,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.90%),
1.72%,
09/14/27
(a)
..........
USD
200
165,455
Bank
of
America
Corp.
(a)
(SOFR
6
Month
+
1.46%),
1.49%,
05/19/24
100
97,538
(SOFR
6
Month
+
0.91%),
0.98%,
09/25/25
200
181,967
(LIBOR
USD
3
Month
+
0.87%),
2.46%,
10/22/25
....................
200
187,257
(SOFR
6
Month
+
0.65%),
1.53%,
12/06/25
240
219,529
Bank
of
Montreal,
Series
H,
4.25%,
09/14/24
85
83,620
Bank
of
Nova
Scotia
(The),
0.65%,
07/31/24
250
230,876
Barclays
plc,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.65%),
5.50%,
08/09/28
(a)
...............
200
187,487
BNP
Paribas
SA,
(EURIBOR
3
Month
+
0.80%),
0.38%,
10/14/27
(a)(c)
.........
EUR
100
83,702
CaixaBank
SA,
(EURIBOR
3
Month
+
0.85%),
0.38%,
11/18/26
(a)(c)
..............
100
85,603
Citigroup,
Inc.
(a)
(SOFR
6
Month
+
0.53%),
1.28%,
11/03/25
USD
35
31,972
(SOFR
6
Month
+
1.53%),
3.29%,
03/17/26
150
141,617
(SOFR
6
Month
+
1.55%),
5.61%,
09/29/26
110
109,393
(SOFR
6
Month
+
0.77%),
1.46%,
06/09/27
60
51,084
Danske
Bank
A/S,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.35%),
1.62%,
09/11/26
(a)(b)
.........
200
173,085
Fifth
Third
Bancorp,
(SOFR
6
Month
+
0.69%),
1.71%,
11/01/27
(a)
...............
100
86,514
HSBC
Holdings
plc
(a)
(SOFR
6
Month
+
0.58%),
1.16%,
11/22/24
200
188,993
(SOFR
6
Month
+
1.40%),
2.63%,
11/07/25
200
185,691
Huntington
Bancshares,
Inc.,
(SOFR
6
Month
+
1.97%),
4.44%,
08/04/28
(a)
..........
50
47,211
Intesa
Sanpaolo
SpA,
1.50%,
04/10/24
(c)
...
EUR
100
95,337
JPMorgan
Chase
&
Co.
(a)
(LIBOR
USD
3
Month
+
0.89%),
3.80%,
07/23/24
....................
USD
49
48,330
(SOFR
6
Month
+
0.49%),
0.77%,
08/09/25
200
183,348
(SOFR
6
Month
+
1.85%),
2.08%,
04/22/26
102
92,931
Lloyds
Banking
Group
plc,
(EUR
Swap
Annual
1
Year
+
0.85%),
0.50%,
11/12/25
(a)(c)
...
EUR
100
90,853
Mitsubishi
UFJ
Financial
Group,
Inc.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.70%),
4.79%,
07/18/25
(a)
USD
285
281,257
NatWest
Group
plc,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.15%),
2.36%,
05/22/24
(a)
..........
200
195,302
Societe
Generale
SA,
(EURIBOR
3
Month
+
1.28%),
0.88%,
09/22/28
(a)(c)
.........
EUR
100
81,921
Swedbank
AB,
1.54%,
11/16/26
(b)
.......
USD
200
173,690
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
Toronto-Dominion
Bank
(The)
(SOFR
3
Month
+
0.24%),
3.24%,
01/06/23
(a)
...................
USD
100
$
99,897
1.25%,
12/13/24
.................
150
138,394
Truist
Financial
Corp.,
(SOFR
6
Month
+
0.61%),
1.27%,
03/02/27
(a)
..........
150
130,392
4,242,477
Biotechnology
—
0.2%
AbbVie,
Inc.,
1.25%,
06/01/24
.........
EUR
100
94,879
Building
Products
—
0.1%
Advanced
Drainage
Systems,
Inc.,
5.00%,
09/30/27
(b)
....................
USD
8
7,357
Carrier
Global
Corp.,
2.24%,
02/15/25
....
36
33,639
Standard
Industries,
Inc.,
4.75%,
01/15/28
(b)
20
16,898
57,894
Capital
Markets
—
3.9%
Bank
of
New
York
Mellon
Corp.
(The),
Series
J,
0.85%,
10/25/24
................
310
286,273
Blackstone
Private
Credit
Fund
3.25%,
03/15/27
.................
100
82,785
4.00%,
01/15/29
.................
40
32,042
Credit
Suisse
Group
AG,
(EUR
Swap
Annual
1
Year
+
0.77%),
0.65%,
01/14/28
(a)(c)
....
EUR
100
78,080
Deutsche
Bank
AG
(a)
(SOFR
6
Month
+
1.13%),
1.45%,
04/01/25
USD
150
138,002
(EURIBOR
3
Month
+
1.38%),
1.88%,
02/23/28
(c)
...................
EUR
200
166,683
Goldman
Sachs
Group,
Inc.
(The)
(a)
(SOFR
6
Month
+
1.51%),
4.39%,
06/15/27
USD
155
147,657
(SOFR
6
Month
+
1.11%),
2.64%,
02/24/28
95
82,426
Intercontinental
Exchange,
Inc.,
4.00%,
09/15/27
.....................
70
66,446
Morgan
Stanley
(a)
(SOFR
6
Month
+
0.47%),
0.56%,
11/10/23
200
198,903
(SOFR
6
Month
+
0.56%),
1.16%,
10/21/25
275
250,630
(EURIBOR
3
Month
+
0.83%),
1.34%,
10/23/26
....................
EUR
100
90,352
MSCI,
Inc.,
3.63%,
09/01/30
(b)
.........
USD
7
5,760
UBS
Group
AG,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.85%),
1.49%,
08/10/27
(a)(b)
..............
200
168,016
1,794,055
Chemicals
—
1.0%
Element
Solutions,
Inc.,
3.88%,
09/01/28
(b)
.
45
36,234
HB
Fuller
Co.,
4.00%,
02/15/27
........
13
11,752
International
Flavors
&
Fragrances,
Inc.
1.23%,
10/01/25
(b)
................
318
278,673
1.80%,
09/25/26
.................
EUR
100
89,937
Minerals
Technologies,
Inc.,
5.00%,
07/01/28
(b)
USD
9
7,833
Sherwin-Williams
Co.
(The),
4.25%,
08/08/25
30
29,282
WR
Grace
Holdings
LLC,
5.63%,
08/15/29
(b)
13
9,750
463,461
Commercial
Services
&
Supplies
—
0.5%
ADT
Security
Corp.
(The),
4.13%,
08/01/29
(b)
8
6,640
Allied
Universal
Holdco
LLC,
6.63%,
07/15/26
(b)
21
18,716
APX
Group,
Inc.,
6.75%,
02/15/27
(b)
......
8
7,473
Aramark
Services,
Inc.,
5.00%,
02/01/28
(b)
..
15
13,361
Garda
World
Security
Corp.,
4.63%,
02/15/27
(b)
5
4,287
GFL
Environmental,
Inc.
(b)
5.13%,
12/15/26
.................
14
13,038
4.00%,
08/01/28
.................
7
5,834
Legends
Hospitality
Holding
Co.
LLC,
5.00%,
02/01/26
(b)
....................
6
5,138
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
27
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Commercial
Services
&
Supplies
(continued)
Nielsen
Finance
LLC,
5.63%,
10/01/28
(b)
...
USD
20
$
19,851
Prime
Security
Services
Borrower
LLC,
6.25%,
01/15/28
(b)
....................
12
10,240
Republic
Services,
Inc.,
3.38%,
11/15/27
...
150
137,172
241,750
Communications
Equipment
—
0.1%
Avaya,
Inc.,
6.13%,
09/15/28
(b)
.........
5
2,487
CommScope
Technologies
LLC,
6.00%,
06/15/25
(b)
....................
8
7,108
CommScope,
Inc.,
6.00%,
03/01/26
(b)
.....
19
17,494
Nokia
OYJ,
4.38%,
06/12/27
..........
8
7,210
Viasat,
Inc.,
5.63%,
04/15/27
(b)
.........
15
12,479
46,778
Consumer
Finance
—
1.0%
American
Express
Co.,
2.55%,
03/04/27
...
190
169,235
General
Motors
Financial
Co.,
Inc.,
3.50%,
11/07/24
.....................
100
95,794
OneMain
Finance
Corp.
6.88%,
03/15/25
.................
2
1,880
7.13%,
03/15/26
.................
12
10,817
SLM
Corp.,
3.13%,
11/02/26
..........
7
5,794
Synchrony
Financial
4.88%,
06/13/25
.................
125
120,588
4.50%,
07/23/25
.................
75
71,531
475,639
Containers
&
Packaging
—
0.3%
Ball
Corp.,
4.88%,
03/15/26
..........
72
68,307
Clydesdale
Acquisition
Holdings,
Inc.,
6.63%,
04/15/29
(b)
....................
7
6,370
Crown
Americas
LLC,
4.25%,
09/30/26
...
30
27,176
Graphic
Packaging
International
LLC,
3.50%,
03/15/28
(b)
....................
13
11,054
Sealed
Air
Corp.,
4.00%,
12/01/27
(b)
.....
20
17,307
130,214
Diversified
Financial
Services
—
0.1%
(b)
MPH
Acquisition
Holdings
LLC,
5.50%,
09/01/28
.....................
14
11,556
Sabre
GLBL,
Inc.
9.25%,
04/15/25
.................
2
1,915
7.38%,
09/01/25
.................
5
4,478
Shift4
Payments
LLC,
4.63%,
11/01/26
....
15
13,678
31,627
Diversified
Telecommunication
Services
—
1.4%
AT&T,
Inc.,
1.80%,
09/05/26
..........
EUR
100
91,331
CCO
Holdings
LLC
(b)
5.13%,
05/01/27
.................
USD
15
13,538
5.00%,
02/01/28
.................
19
16,383
6.38%,
09/01/29
.................
12
11,017
Consolidated
Communications,
Inc.,
6.50%,
10/01/28
(b)
....................
13
9,717
Frontier
Communications
Holdings
LLC
(b)
5.88%,
10/15/27
.................
17
15,236
5.00%,
05/01/28
.................
5
4,291
Level
3
Financing,
Inc.
(b)
3.40%,
03/01/27
.................
1
838
4.63%,
09/15/27
.................
4
3,310
4.25%,
07/01/28
.................
22
17,160
Lumen
Technologies,
Inc.
(b)
5.13%,
12/15/26
.................
54
46,462
4.00%,
02/15/27
.................
11
9,238
4.50%,
01/15/29
.................
4
2,810
Switch
Ltd.,
3.75%,
09/15/28
(b)
.........
21
20,869
Security
Par
(000)
Par
(000)
Value
Diversified
Telecommunication
Services
(continued)
Verizon
Communications,
Inc.
0.85%,
11/20/25
.................
USD
200
$
175,304
2.10%,
03/22/28
.................
195
164,621
Zayo
Group
Holdings,
Inc.,
4.00%,
03/01/27
(b)
57
45,740
647,865
Electric
Utilities
—
1.4%
EDP
-
Energias
de
Portugal
SA,
1.63%,
04/15/27
(c)
....................
EUR
100
89,399
Enel
Finance
International
NV,
1.38%,
07/12/26
(b)
....................
USD
200
168,965
NextEra
Energy
Capital
Holdings,
Inc.
4.20%,
06/20/24
.................
50
49,373
1.88%,
01/15/27
.................
180
156,202
NextEra
Energy
Operating
Partners
LP,
4.25%,
07/15/24
(b)
....................
13
12,449
NRG
Energy,
Inc.
5.75%,
01/15/28
.................
29
26,763
5.25%,
06/15/29
(b)
................
2
1,750
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
(b)
....................
66
57,219
Texas
Electric
Market
Stabilization
Funding
N
LLC,
Series
A-1,
4.27%,
08/01/34
(b)
....
100
95,995
658,115
Electrical
Equipment
—
0.1%
(b)
Sensata
Technologies
BV,
5.00%,
10/01/25
.
15
14,311
Vertiv
Group
Corp.,
4.13%,
11/15/28
.....
18
14,490
28,801
Energy
Equipment
&
Services
—
0.0%
Halliburton
Co.,
3.80%,
11/15/25
.......
20
19,262
Entertainment
—
0.1%
(b)
Lions
Gate
Capital
Holdings
LLC,
5.50%,
04/15/29
.....................
7
5,215
Live
Nation
Entertainment,
Inc.
6.50%,
05/15/27
.................
2
1,924
4.75%,
10/15/27
.................
13
11,286
3.75%,
01/15/28
.................
23
19,493
WMG
Acquisition
Corp.,
3.88%,
07/15/30
..
7
5,735
43,653
Equity
Real
Estate
Investment
Trusts
(REITs)
—
2.5%
American
Tower
Corp.
1.60%,
04/15/26
.................
330
287,645
0.45%,
01/15/27
.................
EUR
100
83,011
Brookfield
Property
REIT,
Inc.,
4.50%,
04/01/27
(b)
....................
USD
6
4,920
Crown
Castle,
Inc.
3.15%,
07/15/23
.................
350
345,268
3.20%,
09/01/24
.................
50
48,374
1.35%,
07/15/25
.................
70
62,818
1.05%,
07/15/26
.................
115
97,140
Equinix,
Inc.,
0.25%,
03/15/27
.........
EUR
100
82,537
HAT
Holdings
I
LLC,
3.38%,
06/15/26
(b)
...
USD
13
10,432
Healthpeak
Properties,
Inc.,
1.35%,
02/01/27
100
84,683
Iron
Mountain,
Inc.,
5.00%,
07/15/28
(b)
....
20
17,200
SBA
Communications
Corp.,
3.88%,
02/15/27
17
15,077
1,139,105
Food
&
Staples
Retailing
—
0.1%
(b)
Albertsons
Cos.,
Inc.
3.25%,
03/15/26
.................
6
5,270
5.88%,
02/15/28
.................
34
31,365
United
Natural
Foods,
Inc.,
6.75%,
10/15/28
6
5,488
US
Foods,
Inc.
6.25%,
04/15/25
.................
13
12,770
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
28
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Food
&
Staples
Retailing
(continued)
4.75%,
02/15/29
.................
USD
2
$
1,712
56,605
Food
Products
—
0.1%
(b)
Chobani
LLC,
4.63%,
11/15/28
.........
14
11,908
Darling
Ingredients,
Inc.,
5.25%,
04/15/27
..
15
14,147
Lamb
Weston
Holdings,
Inc.,
4.88%,
05/15/28
37
33,564
59,619
Health
Care
Equipment
&
Supplies
—
0.1%
Avantor
Funding,
Inc.,
4.63%,
07/15/28
(b)
..
26
23,138
Hologic,
Inc.
(b)
4.63%,
02/01/28
.................
15
13,837
3.25%,
02/15/29
.................
7
5,725
Medline
Borrower
LP,
3.88%,
04/01/29
(b)
...
7
5,612
Teleflex,
Inc.
4.63%,
11/15/27
.................
2
1,802
4.25%,
06/01/28
(b)
................
12
10,437
60,551
Health
Care
Providers
&
Services
—
0.7%
Centene
Corp.,
2.45%,
07/15/28
........
69
56,181
Community
Health
Systems,
Inc.,
8.00%,
03/15/26
(b)
....................
3
2,597
CVS
Health
Corp.,
2.63%,
08/15/24
......
50
47,964
Encompass
Health
Corp.,
4.50%,
02/01/28
.
34
29,121
Fresenius
SE
&
Co.
KGaA,
0.75%,
01/15/28
(c)
EUR
100
83,121
HCA,
Inc.,
5.25%,
04/15/25
...........
USD
50
48,976
Molina
Healthcare,
Inc.,
4.38%,
06/15/28
(b)
.
22
19,855
Tenet
Healthcare
Corp.
(b)
6.25%,
02/01/27
.................
2
1,866
5.13%,
11/01/27
.................
54
48,454
338,135
Hotels,
Restaurants
&
Leisure
—
0.3%
(b)
1011778
BC
ULC
3.88%,
01/15/28
.................
8
6,962
4.38%,
01/15/28
.................
35
30,327
Cedar
Fair
LP,
5.50%,
05/01/25
........
9
8,657
Hilton
Domestic
Operating
Co.,
Inc.
5.75%,
05/01/28
.................
58
54,230
3.75%,
05/01/29
.................
2
1,652
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
6
5,997
Vail
Resorts,
Inc.,
6.25%,
05/15/25
......
9
8,878
116,703
Household
Durables
—
0.0%
Tempur
Sealy
International,
Inc.,
4.00%,
04/15/29
(b)
....................
12
9,456
Independent
Power
and
Renewable
Electricity
Producers
—
0.2%
Clearway
Energy
Operating
LLC,
4.75%,
03/15/28
(b)
....................
90
80,136
Insurance
—
0.6%
(b)
Alliant
Holdings
Intermediate
LLC,
4.25%,
10/15/27
.....................
79
67,480
AmWINS
Group,
Inc.,
4.88%,
06/30/29
....
3
2,490
Metropolitan
Life
Global
Funding
I,
2.80%,
03/21/25
.....................
170
161,013
NFP
Corp.,
4.88%,
08/15/28
..........
58
49,492
280,475
Interactive
Media
&
Services
—
0.0%
Twitter,
Inc.,
3.88%,
12/15/27
(b)
.........
15
14,066
Security
Par
(000)
Par
(000)
Value
Internet
&
Direct
Marketing
Retail
—
0.5%
eBay,
Inc.,
2.75%,
01/30/23
..........
USD
225
$
223,634
Go
Daddy
Operating
Co.
LLC,
3.50%,
03/01/29
(b)
....................
8
6,543
Match
Group
Holdings
II
LLC,
4.63%,
06/01/28
(b)
....................
19
16,601
246,778
IT
Services
—
0.8%
Black
Knight
InfoServ
LLC,
3.63%,
09/01/28
(b)
15
12,788
Block,
Inc.,
2.75%,
06/01/26
..........
21
18,049
Booz
Allen
Hamilton,
Inc.,
3.88%,
09/01/28
(b)
9
7,742
Gartner,
Inc.,
4.50%,
07/01/28
(b)
........
26
23,249
International
Business
Machines
Corp.,
0.95%,
05/23/25
.....................
EUR
100
92,670
Northwest
Fiber
LLC,
4.75%,
04/30/27
(b)
...
USD
32
27,840
PayPal
Holdings,
Inc.
2.65%,
10/01/26
.................
110
100,952
3.90%,
06/01/27
.................
70
67,067
Twilio,
Inc.,
3.63%,
03/15/29
..........
23
18,573
368,930
Life
Sciences
Tools
&
Services
—
0.3%
Charles
River
Laboratories
International,
Inc.,
4.25%,
05/01/28
(b)
...............
32
27,868
Danaher
Corp.,
2.10%,
09/30/26
.......
EUR
100
93,246
Syneos
Health,
Inc.,
3.63%,
01/15/29
(b)
...
USD
19
15,129
136,243
Machinery
—
0.0%
(b)
Mueller
Water
Products,
Inc.,
4.00%,
06/15/29
8
6,808
Wabash
National
Corp.,
4.50%,
10/15/28
..
10
7,752
14,560
Media
—
0.3%
(b)
Clear
Channel
Outdoor
Holdings,
Inc.,
5.13%,
08/15/27
.....................
55
46,461
Directv
Financing
LLC,
5.88%,
08/15/27
...
12
10,345
GCI
LLC,
4.75%,
10/15/28
...........
2
1,661
Outfront
Media
Capital
LLC,
5.00%,
08/15/27
2
1,747
Radiate
Holdco
LLC,
4.50%,
09/15/26
....
18
14,764
Sirius
XM
Radio,
Inc.
5.00%,
08/01/27
.................
2
1,835
4.00%,
07/15/28
.................
49
41,678
118,491
Metals
&
Mining
—
0.6%
Big
River
Steel
LLC,
6.63%,
01/31/29
(b)
...
61
56,143
Novelis
Corp.
(b)
3.25%,
11/15/26
.................
32
26,712
3.88%,
08/15/31
.................
21
15,664
Nucor
Corp.,
4.30%,
05/23/27
.........
120
114,877
Steel
Dynamics,
Inc.,
2.40%,
06/15/25
....
50
46,226
259,622
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.0%
Starwood
Property
Trust,
Inc.
(b)
5.50%,
11/01/23
.................
2
1,965
4.38%,
01/15/27
.................
6
5,115
7,080
Multi-Utilities
—
0.5%
E.ON
SE,
0.88%,
01/08/25
(c)
..........
EUR
30
27,862
Engie
SA,
1.75%,
03/27/28
(c)
..........
100
88,617
Sempra
Energy,
3.30%,
04/01/25
.......
USD
50
47,586
Veolia
Environnement
SA,
0.00%,
01/14/27
(c)
EUR
100
84,673
248,738
Oil,
Gas
&
Consumable
Fuels
—
0.2%
Eni
SpA,
1.00%,
03/14/25
(c)
...........
100
93,186
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
29
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Pharmaceuticals
—
0.1%
Catalent
Pharma
Solutions,
Inc.,
5.00%,
07/15/27
(b)
....................
USD
33
$
29,435
Professional
Services
—
0.0%
(b)
AMN
Healthcare,
Inc.,
4.63%,
10/01/27
...
11
9,868
CoreLogic,
Inc.,
4.50%,
05/01/28
.......
9
6,120
15,988
Real
Estate
Management
&
Development
—
0.1%
(b)
Cushman
&
Wakefield
US
Borrower
LLC,
6.75%,
05/15/28
................
16
14,841
Howard
Hughes
Corp.
(The),
5.38%,
08/01/28
19
15,770
Realogy
Group
LLC,
5.75%,
01/15/29
....
11
7,934
38,545
Road
&
Rail
—
0.3%
Ryder
System,
Inc.,
3.75%,
06/09/23
.....
110
109,271
Uber
Technologies,
Inc.
(b)
8.00%,
11/01/26
.................
6
5,991
6.25%,
01/15/28
.................
25
23,250
Williams
Scotsman
International,
Inc.,
4.63%,
08/15/28
(b)
....................
14
12,249
150,761
Semiconductors
&
Semiconductor
Equipment
—
1.2%
Broadcom
Corp.,
3.13%,
01/15/25
......
5
4,797
Entegris
Escrow
Corp.,
4.75%,
04/15/29
(b)
..
15
13,212
Entegris,
Inc.,
4.38%,
04/15/28
(b)
.......
5
4,239
NXP
BV
4.88%,
03/01/24
.................
150
148,572
2.70%,
05/01/25
.................
330
305,312
3.88%,
06/18/26
.................
70
65,450
Synaptics,
Inc.,
4.00%,
06/15/29
(b)
.......
7
5,636
547,218
Software
—
1.8%
Central
Parent,
Inc.,
7.25%,
06/15/29
(b)
....
6
5,704
Clarivate
Science
Holdings
Corp.,
3.88%,
07/01/28
(b)
....................
41
33,817
Consensus
Cloud
Solutions,
Inc.,
6.00%,
10/15/26
(b)
....................
13
11,456
Fair
Isaac
Corp.,
4.00%,
06/15/28
(b)
......
12
10,225
MicroStrategy,
Inc.,
6.13%,
06/15/28
(b)
....
7
5,768
NortonLifeLock,
Inc.,
6.75%,
09/30/27
(b)
...
10
9,595
Open
Text
Corp.,
3.88%,
02/15/28
(b)
.....
24
19,848
Oracle
Corp.
2.50%,
10/15/22
.................
147
146,918
1.65%,
03/25/26
.................
185
162,097
Picard
Midco,
Inc.,
6.50%,
03/31/29
(b)
.....
40
33,788
PTC,
Inc.,
4.00%,
02/15/28
(b)
..........
19
16,617
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
(b)
25
22,805
Veritas
US,
Inc.,
7.50%,
09/01/25
(b)
......
2
1,532
VMware,
Inc.
0.60%,
08/15/23
.................
120
115,532
1.40%,
08/15/26
.................
155
132,559
Workday,
Inc.,
3.50%,
04/01/27
........
80
73,999
ZoomInfo
Technologies
LLC,
3.88%,
02/01/29
(b)
18
14,687
816,947
Specialty
Retail
—
0.7%
Group
1
Automotive,
Inc.,
4.00%,
08/15/28
(b)
6
4,831
Home
Depot,
Inc.
(The),
2.88%,
04/15/27
..
55
50,847
Lowe's
Cos.,
Inc.
3.35%,
04/01/27
.................
60
55,568
3.10%,
05/03/27
.................
180
165,064
SRS
Distribution,
Inc.,
4.63%,
07/01/28
(b)
..
42
36,078
312,388
Security
Par
(000)
Par
(000)
Value
Textiles,
Apparel
&
Luxury
Goods
—
0.1%
(b)
Crocs,
Inc.,
4.25%,
03/15/29
..........
USD
17
$
13,515
William
Carter
Co.
(The),
5.63%,
03/15/27
..
14
13,089
26,604
Thrifts
&
Mortgage
Finance
—
0.0%
Enact
Holdings,
Inc.,
6.50%,
08/15/25
(b)
...
13
12,424
MGIC
Investment
Corp.,
5.25%,
08/15/28
..
10
8,934
Nationstar
Mortgage
Holdings,
Inc.,
6.00%,
01/15/27
(b)
....................
3
2,561
23,919
Trading
Companies
&
Distributors
—
0.5%
Air
Lease
Corp.,
1.88%,
08/15/26
.......
35
29,662
Aviation
Capital
Group
LLC,
1.95%,
09/20/26
(b)
150
121,479
Herc
Holdings,
Inc.,
5.50%,
07/15/27
(b)
....
14
12,600
Imola
Merger
Corp.,
4.75%,
05/15/29
(b)
....
8
6,749
United
Rentals
North
America,
Inc.,
4.88%,
01/15/28
.....................
21
19,254
WESCO
Distribution,
Inc.,
7.25%,
06/15/28
(b)
24
23,507
213,251
Wireless
Telecommunication
Services
—
0.6%
Rogers
Communications,
Inc.,
3.20%,
03/15/27
(b)
....................
145
132,438
Sprint
Corp.,
7.63%,
03/01/26
.........
38
39,305
T-Mobile
USA,
Inc.
1.50%,
02/15/26
.................
88
77,238
2.25%,
02/15/26
.................
23
20,580
269,561
Total
Corporate
Bonds
—
33.1%
(Cost:
$17,243,018)
..............................
15,330,193
Foreign
Agency
Obligations
France
—
0.2%
Electricite
de
France
SA,
1.00%
,
10/13/26
(c)
.
EUR
100
89,404
Germany
—
0.7%
(c)
Kreditanstalt
fuer
Wiederaufbau,
0.00%
,
09/15/28
......................
200
168,139
Landwirtschaftliche
Rentenbank,
0.00%
,
09/22/27
......................
200
171,258
339,397
Supranational
—
4.2%
Asian
Development
Bank,
0.35%
,
07/16/25
.
400
367,087
European
Bank
for
Reconstruction
&
Development,
0.00%
,
01/10/24
.......
500
474,653
European
Investment
Bank
(c)
0.50%,
11/15/23
.................
400
385,143
1.25%,
11/13/26
.................
270
250,476
Nordic
Investment
Bank,
0.13%
,
06/10/24
(c)
.
500
470,081
1,947,440
Total
Foreign
Agency
Obligations
—
5.1%
(Cost:
$2,852,702)
..............................
2,376,241
Non-Agency
Mortgage-Backed
Securities
Collateralized
Mortgage
Obligations
—
1.5%
(a)(b)
Angel
Oak
Mortgage
Trust,
Series
2022-2,
Class
A1,
3.35%,
01/25/67
..........
USD
46
41,044
COLT
Mortgage
Loan
Trust,
Series
2022-3,
Class
A1,
3.90%,
02/25/67
..........
94
86,043
CSMC
Trust,
Series
2021-NQM8,
Class
A1,
1.84%,
10/25/66
.................
87
73,069
Deephaven
Residential
Mortgage
Trust,
Series
2021-4,
Class
A1,
1.93%,
11/25/66
.....
85
73,718
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
30
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Collateralized
Mortgage
Obligations
(continued)
GCAT
Trust,
Series
2021-NQM7,
Class
A1,
1.91%,
08/25/66
.................
USD
73
$
65,168
MFA
Trust,
Series
2021-INV2,
Class
A1,
1.91%,
11/25/56
.......................
184
158,664
PRKCM
Trust,
Series
2021-AFC2,
Class
A1,
2.07%,
11/25/56
.................
105
86,646
RCKT
Mortgage
Trust,
Series
2022-4,
Class
A2,
3.50%,
06/25/52
..............
98
84,147
668,499
Commercial
Mortgage-Backed
Securities
—
5.7%
1211
Avenue
of
the
Americas
Trust,
Series
2015-1211,
Class
A1A2,
3.90%,
08/10/35
(b)
150
141,355
245
Park
Avenue
Trust,
Series
2017-245P,
Class
A,
3.51%,
06/05/37
(b)
..........
140
124,661
AREIT
LLC,
Series
2022-CRE7,
Class
A,
(1
Month
CME
Term
SOFR
+
2.24%),
5.26%,
06/17/39
(a)(b)
....................
100
98,752
BAMLL
Commercial
Mortgage
Securities
Trust,
Series
2015-200P,
Class
A,
3.22%,
04/14/33
(b)
.....................
200
186,625
Citigroup
Commercial
Mortgage
Trust
Series
2016-P5,
Class
A3,
2.68%,
10/10/49
97
87,553
Series
2018-C5,
Class
A4,
4.23%,
06/10/51
(a)
...................
150
141,611
Commercial
Mortgage
Trust
Series
2013-CR10,
Class
A4,
4.21%,
08/10/46
(a)
...................
175
173,780
Series
2015-CR22,
Class
A5,
3.31%,
03/10/48
....................
200
190,765
CSAIL
Commercial
Mortgage
Trust,
Series
2016-C5,
Class
A5,
3.76%,
11/15/48
....
200
189,947
Grace
Trust,
Series
2020-GRCE,
Class
A,
2.35%,
12/10/40
(b)
................
150
115,226
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
(b)
Series
2021-NYAH,
Class
A,
(LIBOR
USD
1
Month
+
0.76%),
3.58%,
06/15/38
(a)
..
200
192,961
Series
2022-OPO,
Class
A,
3.02%,
01/05/39
100
86,441
MAD
Mortgage
Trust,
Series
2017-330M,
Class
A,
3.29%,
08/15/34
(a)(b)
.............
250
235,276
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series
2014-C15,
Class
A4,
4.05%,
04/15/47
....................
135
132,645
Series
2015-C20,
Class
A4,
3.25%,
02/15/48
....................
180
171,893
Ready
Capital
Mortgage
Financing
LLC,
Series
2022-FL8,
Class
A,
(SOFR
30
Day
Average
+
1.65%),
3.95%,
01/25/37
(a)(b)
........
60
58,200
SLG
Office
Trust,
Series
2021-OVA,
Class
A,
2.59%,
07/15/41
(b)
................
100
80,130
Taubman
Centers
Commercial
Mortgage
Trust,
Series
2022-DPM,
Class
A,
(1
Month
CME
Term
SOFR
+
2.19%),
5.03%,
05/15/37
(a)(b)
100
97,648
Wells
Fargo
Commercial
Mortgage
Trust
Series
2016-LC25,
Class
A4,
3.64%,
12/15/59
....................
50
46,618
Series
2021-C60,
Class
ASB,
2.13%,
08/15/54
....................
100
83,487
2,635,574
Total
Non-Agency
Mortgage-Backed
Securities
—
7.2%
(Cost:
$3,676,160)
..............................
3,304,073
Security
Par
(000)
Par
(000)
Value
U.S.
Government
Sponsored
Agency
Securities
Mortgage-Backed
Securities
—
10.3%
Government
National
Mortgage
Association
2.50%, 10/20/51
.................
USD
209
$
179,233
3.00%, 10/20/51
.................
1,005
891,693
Uniform
Mortgage-Backed
Securities
2.50%, 11/01/51
.................
186
158,864
3.00%, 11/01/51
.................
254
226,452
3.50%, 11/01/51
.................
952
881,472
4.50%, 10/25/52
-
11/25/52
(d)
.........
2,570
2,446,734
Total
U.S.
Government
Sponsored
Agency
Securities
—
10.3%
(Cost:
$5,225,481)
..............................
4,784,448
U.S.
Treasury
Obligations
U.S.
Treasury
Bonds
,
1.75%, 08/15/41
....
610
417,064
U.S.
Treasury
Inflation
Linked
Notes
,
0.13%, 04/15/27
.................
530
488,586
U.S.
Treasury
Notes
0.13%, 12/31/22
-
05/15/23
..........
260
255,335
0.75%, 11/15/24
.................
670
622,576
1.75%, 03/15/25
.................
2,020
1,902,114
2.75%, 05/15/25
.................
890
856,451
2.88%, 06/15/25
.................
2,680
2,584,630
3.13%, 08/15/25
.................
2,600
2,520,172
3.50%, 09/15/25
.................
3,075
3,012,299
Total
U.S.
Treasury
Obligations
—
27.4%
(Cost:
$13,140,249)
..............................
12,659,227
Total
Long-Term
Investments
—
97.4%
(Cost:
$49,095,017)
..............................
45,059,642
Short-Term
Securities
Commercial
Paper
—
1.1%
Commonwealth
Bank
of
Australia,
(SOFR
1
Day
+
0.45%),
3.41%
,
02/21/23
(a)
......
250
250,201
Enel
Finance
America
LLC,
5.27%
,
09/06/23
(e)
250
238,593
Total
Commercial
Paper
—
1.1%
(Cost:
$488,195)
................................
488,794
Shares
Shares
Money
Market
Funds
—
2.9%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
2.79%
(f)(g)
.................
1,345,914
1,345,914
Total
Money
Market
Funds
—
2.9%
(Cost:
$1,345,914)
..............................
1,345,914
Par
(000)
Pa
r
(
000)
U.S.
Treasury
Obligations
—
3.8%
U.S.
Treasury
Bills
(e)
3.84%, 03/23/23
.................
900
884,343
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
31
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
2.08%, 05/18/23
.................
USD
900
$
880,159
Total
U.S.
Treasury
Obligations
—
3.8%
(Cost:
$1,771,958)
..............................
1,764,502
Total
Short-Term
Securities
—
7.8%
(Cost:
$3,606,067)
..............................
3,599,210
Total
Investments
Before
TBA
Sale
Commitments
—
105.2%
(Cost:
$52,701,084
)
..............................
48,658,852
TBA
Sale
Commitments
Mortgage-Backed
Securities
—
(1.6)%
Uniform
Mortgage-Backed
Securities,
4.50%, 10/25/52
(d)
................
(750)
(714,434)
Total
TBA
Sale
Commitments
—
(1.6)%
(Proceeds:
$(717,148))
...........................
(714,434)
Total
Investments
Net
of
TBA
Sale
Commitments
—
103.6%
(Cost:
$51,983,936
)
..............................
47,944,418
Liabilities
in
Excess
of
Other
Assets
—
(3.6)%
............
(1,667,497)
Net
Assets
—
100.0%
..............................
$
46,276,921
(a)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(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)
This
security
may
be
resold
to
qualified
foreign
investors
and
foreign
institutional
buyers
under
Regulation
S
of
the
Securities
Act
of
1933.
(d)
Represents
or
includes
a
TBA
transaction.
(e)
Rates
are
discount
rates
or
a
range
of
discount
rates
as
of
period
end.
(f)
Annualized
7-day
yield
as
of
period
end.
(g)
Affiliate
of
the
Fund.
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
period
ended
September
30,
2022
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
10/18/21
(a)
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/22
Shares
Held
at
09/30/22
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
...
$
—
$
1,345,914
(b)
$
—
$
—
$
—
$
1,345,914
1,345,914
$
8,239
$
—
—
—
(a)
Commencement
of
operations.
(b)
Represents
net
amount
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.
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
32
Schedule
of
Investments
(continued)
September
30,
2022
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
....................................................
93
12/30/22
$
19,095
$
(314,594)
Short
Contracts
Euro-Bobl
...............................................................
16
12/08/22
1,878
45,514
Euro-Bund
..............................................................
1
12/08/22
136
6,435
Euro-Schatz
.............................................................
10
12/08/22
1,050
9,460
U.S.
Treasury
10
Year
Note
...................................................
17
12/20/22
1,905
56,846
U.S.
Treasury
10
Year
Ultra
Note
...............................................
10
12/20/22
1,185
69,074
U.S.
Treasury
Long
Bond
....................................................
3
12/20/22
380
28,180
U.S.
Treasury
Ultra
Bond
....................................................
3
12/20/22
410
40,379
U.S.
Treasury
5
Year
Note
....................................................
40
12/30/22
4,298
123,617
379,505
$
64,911
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
USD
4,448,177
EUR
4,427,000
Morgan
Stanley
&
Co.
International
plc
12/21/22
$
82,000
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.HY.39.V1
...................
5.00
%
Quarterly
12/20/27
USD
520
$
20,546
$
24,570
$
(4,024)
CDX.NA.IG.39.V1
...................
1.00
Quarterly
12/20/27
USD
340
1,062
(548)
1,610
$
21,608
$
24,022
$
(2,414)
Centrally
Cleared
Interest
Rate
Swap
s
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)
1
day
SOFR
Annual
3.66%
Annual
01/05/23
(a)
09/30/24
USD
1,025
$
(10,482)
$
219
$
(10,701)
3.22%
Annual
1
day
SOFR
Annual
01/05/23
(a)
02/28/27
USD
1,025
25,632
412
25,220
$
15,150
$
631
$
14,519
(a)
Forward
swap.
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
1
day
SOFR
.........................................
Secured
Overnight
Financing
Rate
2.59
%
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
33
Schedule
of
Investments
(continued)
September
30,
2022
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
Balances
Reported
in
the
Statements
of
Assets
and
Liabilities
for
Centrally
Cleared
Swaps
Description
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
Value
Centrally
Cleared
Swaps
(a)
...........................................
$
25,201
$
(548)
$
26,830
$
(14,725)
$
—
(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.
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)
.....
$
—
$
—
$
—
$
—
$
379,505
$
—
$
379,505
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
82,000
—
—
82,000
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
1,610
—
—
25,220
—
26,830
$
—
$
1,610
$
—
$
82,000
$
404,725
$
—
$
488,335
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
$
—
$
—
$
—
$
—
$
314,594
$
—
$
314,594
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
4,024
—
—
10,701
—
14,725
$
—
$
4,024
$
—
$
—
$
325,295
$
—
$
329,319
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
of
Assets
and
Liabilities,
only
current
day’s
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
For
the
period
ended
September
30,
2022,
the
effect
of
derivative
financial
instruments
in
the
Statements
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
260,065
$
—
$
260,065
Forward
foreign
currency
exchange
contracts
....
—
—
—
684,085
—
—
684,085
Swaps
..............................
—
36,920
—
—
7,461
—
44,381
$
—
$
36,920
$
—
$
684,085
$
267,526
$
—
$
988,531
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
64,911
$
—
$
64,911
Forward
foreign
currency
exchange
contracts
....
—
—
—
82,000
—
—
82,000
Swaps
..............................
—
(2,414)
—
—
14,519
—
12,105
$
—
$
(2,414)
$
—
$
82,000
$
79,430
$
—
$
159,016
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
34
Schedule
of
Investments
(continued)
September
30,
2022
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
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
20,458,443
Average
notional
value
of
contracts
—
short
.................................................................................
$
12,393,290
Forward
foreign
currency
exchange
contracts
Average
amounts
purchased
—
in
USD
....................................................................................
$
4,643,400
Average
amounts
sold
—
in
USD
........................................................................................
$
32,793
Credit
default
swaps
Average
notional
value
—
buy
protection
...................................................................................
$
525,000
Interest
rate
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
512,500
Average
notional
value
—
receives
fixed
rate
................................................................................
$
512,500
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments
$
—
Futures
contracts
....................................................................................
$
31,949
$
30,236
Forward
foreign
currency
exchange
contracts
.................................................................
82,000
—
Swaps
—
centrally
cleared
..............................................................................
5,986
—
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
119,935
$
30,236
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(37,935)
(30,236)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
82,000
$
—
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
Non-cash
Collateral
Received
Cash
Collateral
Received
Net
Amount
of
Derivative
Assets
(a)(b)
Morgan
Stanley
&
Co.
International
plc
..................
$
82,000
$
—
$
—
$
—
$
82,000
(a)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(b)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
35
Schedule
of
Investments
(continued)
September
30,
2022
See
notes
to
financial
statements.
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund’s
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
......................................
$
—
$
45,059,642
$
—
$
45,059,642
Short-Term
Securities
Commercial
Paper
.......................................
—
488,794
—
488,794
Money
Market
Funds
......................................
1,345,914
—
—
1,345,914
U.S.
Treasury
Obligations
...................................
—
1,764,502
—
1,764,502
Liabilities
Investments
TBA
Sale
Commitments
....................................
—
(714,434)
—
(714,434)
$
1,345,914
$
46,598,504
$
—
$
47,944,418
Derivative
Financial
Instruments
(a)
Assets
Credit
contracts
...........................................
$
—
$
1,61
0
$
—
$
1,61
0
Foreign
currency
exchange
contracts
............................
—
82,000
—
82,000
Interest
rate
contracts
.......................................
379,505
25,220
—
404,725
Liabilities
Credit
contracts
...........................................
—
(4,024)
—
(4,024)
Interest
rate
contracts
.......................................
(314,594)
(10,701)
—
(325,295)
$
64,911
$
94,10
5
$
—
$
159,01
6
(a)
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.
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
36
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
September
30,
2022
Security
Par
(000)
Pa
r
(
000)
Value
Asset-Backed
Securities
Cayman
Islands
—
8.6%
(a)(b)
AGL
Core
CLO
4
Ltd.,
Series
2020-4A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.07%),
3.78%,
04/20/33
.......
USD
250
$
242,425
Anchorage
Capital
CLO
8
Ltd.,
Series
2016-8A,
Class
BR2,
(LIBOR
USD
3
Month
+
1.80%),
4.57%,
10/27/34
250
235,616
Bridge
Street
CLO
II
Ltd.,
Series
2021-1A,
Class
A1A,
(LIBOR
USD
3
Month
+
1.23%),
3.94%,
07/20/34
250
239,554
CIFC
Funding
Ltd.,
Series
2020-3A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.13%),
3.84%,
10/20/34
.......
250
238,809
Gilbert
Park
CLO
Ltd.,
Series
2017-1A,
Class
A,
(LIBOR
USD
3
Month
+
1.19%),
3.70%,
10/15/30
.......
250
245,746
GoldentTree
Loan
Management
US
CLO
1
Ltd.
Series
2021-11A,
Class
A,
(LIBOR
USD
3
Month
+
1.13%),
3.84%,
10/20/34
...............
250
238,804
Series
2021-11A,
Class
E,
(LIBOR
USD
3
Month
+
5.35%),
8.06%,
10/20/34
...............
250
202,395
Madison
Park
Funding
XVIII
Ltd.,
Series
2015-18A,
Class
ARR,
(LIBOR
USD
3
Month
+
0.94%),
3.67%,
10/21/30
............
250
244,874
Neuberger
Berman
Loan
Advisers
CLO
35
Ltd.,
Series
2019-35A,
Class
C,
(LIBOR
USD
3
Month
+
2.60%),
5.34%,
01/19/33
............
250
233,208
OHA
Loan
Funding
Ltd.,
Series
2015-
1A,
Class
AR3,
(LIBOR
USD
3
Month
+
1.15%),
3.89%,
01/19/37
250
238,643
Palmer
Square
CLO
Ltd.,
Series
2021-
3A,
Class
A1,
(LIBOR
USD
3
Month
+
1.15%),
3.66%,
01/15/35
.....
250
238,797
Pikes
Peak
CLO
8,
Series
2021-8A,
Class
B,
(LIBOR
USD
3
Month
+
1.75%),
4.46%,
07/20/34
.......
250
235,799
TCW
CLO
AMR
Ltd.,
Series
2019-1A,
Class
ASNR,
(LIBOR
USD
3
Month
+
1.22%),
4.14%,
08/16/34
.....
250
240,385
Trestles
CLO
V
Ltd.,
Series
2021-5A,
Class
A1,
(LIBOR
USD
3
Month
+
1.17%),
3.88%,
10/20/34
.......
250
238,495
Trimaran
Cavu
Ltd.,
Series
2021-2A,
Class
D1,
(LIBOR
USD
3
Month
+
3.25%),
6.03%,
10/25/34
.......
250
231,109
3,544,659
Ireland
—
0.7%
Prodigy
Finance
DAC,
Series
2021-1A,
Class
A,
(LIBOR
USD
1
Month
+
1.25%),
4.33%,
07/25/51
(a)(b)
....
277
270,203
United
States
—
5.1%
(a)
Diameter
Capital
CLO
1
Ltd.,
Series
2021-1A,
Class
A1A,
(LIBOR
USD
3
Month
+
1.24%),
3.75%,
07/15/36
(b)
250
240,232
Home
Partners
of
America
Trust,
Series
2021-2,
Class
F,
3.80%,
12/17/26
.
488
419,425
Legacy
Mortgage
Asset
Trust,
Series
2019-SL2,
Class
M,
4.25%,
02/25/59
(b)
................
202
159,690
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Mosaic
Solar
Loans
LLC,
Series
2017-
2A,
Class
C,
2.00%,
06/22/43
...
USD
85
$
81,993
PRET
LLC,
Series
2021-NPL6,
Class
A1,
2.49%,
07/25/51
(c)
........
376
349,651
Progress
Residential
Trust,
Series
2021-SFR10,
Class
F,
4.61%,
12/17/40
.................
500
411,617
Regional
Management
Issuance
Trust,
Series
2022-1,
Class
A,
3.07%,
03/15/32
.................
100
90,377
Tricon
Residential
Trust,
Series
2021-
SFR1,
Class
F,
3.69%,
07/17/38
..
400
342,474
2,095,459
Total
Asset-Backed
Securities
—
14.4%
(Cost:
$6,378,526)
..............................
5,910,321
Corporate
Bonds
Australia
—
0.0%
FMG
Resources
August
2006
Pty.
Ltd.,
6.13%
,
04/15/32
(a)
...........
22
18,904
Belgium
—
0.8%
Anheuser-Busch
Cos.
LLC
4.70%,
02/01/36
............
4
3,605
4.90%,
02/01/46
............
24
20,858
Anheuser-Busch
InBev
Worldwide,
Inc.
4.75%,
01/23/29
............
87
84,751
5.88%,
06/15/35
............
31
30,992
KBC
Group
NV,
(EURIBOR
3
Month
+
0.72%),
0.38%
,
06/16/27
(b)(d)
....
EUR
200
171,219
311,425
Canada
—
0.1%
1011778
BC
ULC,
3.88%
,
01/15/28
(a)
USD
6
5,221
Rogers
Communications,
Inc.,
3.70%
,
11/15/49
..................
35
23,937
29,158
China
—
0.6%
NXP
BV
5.55%,
12/01/28
............
68
66,555
3.40%,
05/01/30
............
115
96,287
2.50%,
05/11/31
............
61
45,628
5.00%,
01/15/33
............
34
30,250
238,720
France
—
0.8%
(d)
Banque
Federative
du
Credit
Mutuel
SA,
0.10%
,
10/08/27
.........
EUR
100
81,742
BNP
Paribas
SA,
(EURIBOR
3
Month
+
0.80%),
0.38%
,
10/14/27
(b)
.....
100
83,702
Engie
SA,
1.75%
,
03/27/28
.......
100
88,617
Societe
Generale
SA,
(EURIBOR
3
Month
+
1.28%),
0.88%
,
09/22/28
(b)
100
81,921
335,982
Germany
—
0.8%
(d)
Commerzbank
AG,
(EURIBOR
3
Month
+
1.30%),
0.75%
,
03/24/26
(b)
....
100
89,028
Deutsche
Bank
AG,
(EURIBOR
3
Month
+
1.38%),
1.88%
,
02/23/28
(b)
200
166,683
E.ON
SE,
1.00%
,
10/07/25
.......
100
92,029
347,740
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
37
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
Italy
—
0.7%
(d)
Intesa
Sanpaolo
SpA,
1.50%
,
04/10/24
EUR
100
$
95,337
Iren
SpA
1.95%,
09/19/25
............
100
92,699
1.50%,
10/24/27
............
100
84,844
272,880
Japan
—
1.3%
Mitsubishi
UFJ
Financial
Group,
Inc.,
2.53%
,
09/13/23
............
USD
347
338,405
Takeda
Pharmaceutical
Co.
Ltd.,
5.00%
,
11/26/28
............
200
193,606
532,011
Spain
—
0.8%
(d)
Banco
de
Sabadell
SA,
(EUR
Swap
Annual
1
Year
+
1.55%),
1.13%
,
03/11/27
(b)
................
EUR
100
86,824
Banco
Santander
SA,
0.30%
,
10/04/26
200
170,702
CaixaBank
SA,
(EURIBOR
3
Month
+
0.85%),
0.38%
,
11/18/26
(b)
.....
100
85,602
343,128
United
Kingdom
—
1.3%
CNH
Industrial
NV,
4.50%
,
08/15/23
.
USD
188
186,874
National
Grid
plc,
0.25%
,
09/01/28
(d)
.
EUR
100
78,077
RELX
Capital,
Inc.
4.00%,
03/18/29
............
USD
44
40,408
3.00%,
05/22/30
............
59
49,776
SSE
plc
(d)
0.88%,
09/06/25
............
EUR
100
90,853
1.38%,
09/04/27
............
100
87,335
533,323
United
States
—
29.2%
AbbVie,
Inc.
4.55%,
03/15/35
............
USD
88
78,944
4.50%,
05/14/35
............
48
42,703
4.70%,
05/14/45
............
36
30,449
AEP
Texas,
Inc.,
5.25%
,
05/15/52
...
52
47,450
Aetna,
Inc.,
6.63%
,
06/15/36
......
7
7,138
Agilent
Technologies,
Inc.
3.05%,
09/22/26
............
34
31,285
2.75%,
09/15/29
............
8
6,721
2.10%,
06/04/30
............
5
3,920
Albertsons
Cos.,
Inc.
(a)
5.88%,
02/15/28
............
12
11,070
4.88%,
02/15/30
............
6
5,076
Alexandria
Real
Estate
Equities,
Inc.,
4.90%
,
12/15/30
............
29
27,432
Amazon.com,
Inc.,
4.05%
,
08/22/47
.
24
20,267
American
International
Group,
Inc.,
4.38%
,
06/30/50
............
27
21,606
American
Tower
Corp.
5.00%,
02/15/24
............
12
11,993
0.45%,
01/15/27
............
EUR
100
83,011
3.60%,
01/15/28
............
USD
111
98,492
3.80%,
08/15/29
............
33
28,948
2.10%,
06/15/30
............
39
29,874
Amgen,
Inc.
4.40%,
05/01/45
............
35
28,575
4.66%,
06/15/51
............
4
3,361
4.20%,
02/22/52
............
23
18,030
Aon
Corp.
3.75%,
05/02/29
............
14
12,592
2.80%,
05/15/30
............
47
38,968
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Apple,
Inc.,
2.80%
,
02/08/61
......
USD
37
$
23,034
Applied
Materials,
Inc.,
4.35%
,
04/01/47
.................
7
6,052
Aramark
Services,
Inc.,
5.00%
,
02/01/28
(a)
................
14
12,470
AT&T,
Inc.
4.30%,
02/15/30
............
53
48,425
2.75%,
06/01/31
............
33
26,416
4.50%,
05/15/35
............
141
122,116
4.75%,
05/15/46
............
70
58,670
4.50%,
03/09/48
............
11
8,681
3.80%,
12/01/57
............
37
24,995
Atlantic
City
Electric
Co.,
4.00%
,
10/15/28
.................
8
7,480
Atmos
Energy
Corp.,
2.85%
,
02/15/52
10
6,321
Autodesk,
Inc.,
2.40%
,
12/15/31
....
53
41,224
Baltimore
Gas
&
Electric
Co.,
3.50%
,
08/15/46
.................
74
54,500
Bank
of
America
Corp.
(b)
(LIBOR
USD
3
Month
+
0.79%),
3.00%,
12/20/23
..........
20
19,894
(SOFR
6
Month
+
1.46%),
1.49%,
05/19/24
...............
397
387,228
(LIBOR
USD
3
Month
+
0.87%),
2.46%,
10/22/25
..........
6
5,618
(SOFR
6
Month
+
1.32%),
2.69%,
04/22/32
...............
131
102,276
(SOFR
6
Month
+
1.33%),
2.97%,
02/04/33
...............
351
274,395
(SOFR
6
Month
+
1.83%),
4.57%,
04/27/33
...............
75
67,176
Baxter
International,
Inc.
2.60%,
08/15/26
............
33
29,852
2.54%,
02/01/32
............
7
5,449
Biogen,
Inc.
2.25%,
05/01/30
............
23
18,112
5.20%,
09/15/45
............
9
8,035
3.15%,
05/01/50
............
17
10,952
Blackstone
Private
Credit
Fund,
4.00%
,
01/15/29
.................
42
33,644
Broadcom,
Inc.
4.15%,
11/15/30
............
17
14,714
4.30%,
11/15/32
............
78
65,492
Broadridge
Financial
Solutions,
Inc.,
2.60%
,
05/01/31
............
5
3,960
Burlington
Northern
Santa
Fe
LLC,
3.30%
,
09/15/51
............
33
23,499
Cameron
LNG
LLC,
3.30%
,
01/15/35
(a)
220
173,028
Carrier
Global
Corp.,
2.24%
,
02/15/25
5
4,672
CCO
Holdings
LLC
(a)
5.38%,
06/01/29
............
14
12,254
4.75%,
03/01/30
............
16
12,980
Cedar
Fair
LP
5.50%,
05/01/25
(a)
...........
8
7,695
5.38%,
04/15/27
............
12
11,147
5.25%,
07/15/29
............
12
10,297
CenterPoint
Energy
Houston
Electric
LLC
Series
AE,
2.35%,
04/01/31
....
10
8,158
Series
AF,
3.35%,
04/01/51
....
15
10,754
Charter
Communications
Operating
LLC
5.13%,
07/01/49
............
8
5,864
4.80%,
03/01/50
............
113
81,517
3.90%,
06/01/52
............
15
9,287
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
38
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
5.25%,
04/01/53
............
USD
28
$
21,441
4.40%,
12/01/61
............
15
9,556
3.95%,
06/30/62
............
26
15,418
5.50%,
04/01/63
............
21
15,866
Citigroup,
Inc.
(b)
(SOFR
6
Month
+
0.69%),
2.01%,
01/25/26
...............
48
44,109
(SOFR
6
Month
+
2.09%),
4.91%,
05/24/33
...............
106
97,519
Citizens
Financial
Group,
Inc.,
3.25%
,
04/30/30
.................
6
4,908
Clear
Channel
Outdoor
Holdings,
Inc.,
5.13%
,
08/15/27
(a)
...........
16
13,516
Comcast
Corp.,
3.40%
,
07/15/46
...
58
40,925
Commercial
Metals
Co.,
4.38%
,
03/15/32
.................
14
11,060
Commonwealth
Edison
Co.
4.00%,
03/01/48
............
18
14,419
Series
133,
3.85%,
03/15/52
....
24
18,682
Cox
Communications,
Inc.,
3.15%
,
08/15/24
(a)
................
14
13,402
Crown
Castle,
Inc.,
2.50%
,
07/15/31
.
36
27,741
CSX
Corp.
2.50%,
05/15/51
............
26
15,562
4.25%,
11/01/66
............
10
7,600
CVS
Health
Corp.
4.30%,
03/25/28
............
158
149,019
3.25%,
08/15/29
............
43
37,629
5.13%,
07/20/45
............
40
35,026
Dell
International
LLC,
6.02%
,
06/15/26
67
67,270
Duke
Realty
LP,
1.75%
,
02/01/31
...
52
39,745
DXC
Technology
Co.,
2.38%
,
09/15/28
9
7,352
Eaton
Corp.,
4.70%
,
08/23/52
.....
10
8,783
eBay,
Inc.,
1.40%
,
05/10/26
.......
5
4,374
Ecolab,
Inc.,
3.95%
,
12/01/47
.....
16
13,111
Electronic
Arts,
Inc.,
1.85%
,
02/15/31
20
15,416
Entergy
Louisiana
LLC
4.95%,
01/15/45
............
97
86,981
4.20%,
09/01/48
............
41
32,962
Enterprise
Products
Operating
LLC,
3.30%
,
02/15/53
............
45
29,276
Equifax,
Inc.,
2.35%
,
09/15/31
.....
5
3,756
Equinix,
Inc.
0.25%,
03/15/27
............
EUR
100
82,537
3.20%,
11/18/29
............
USD
63
53,259
2.15%,
07/15/30
............
99
75,900
2.50%,
05/15/31
............
21
16,178
3.90%,
04/15/32
............
115
97,689
Exelon
Corp.,
4.45%
,
04/15/46
.....
32
26,120
Expedia
Group,
Inc.,
2.95%
,
03/15/31
2
1,552
FactSet
Research
Systems,
Inc.,
3.45%
,
03/01/32
............
12
9,779
Fiserv,
Inc.,
3.50%
,
07/01/29
......
7
6,090
Florida
Power
&
Light
Co.,
4.05%
,
10/01/44
.................
86
70,518
Ford
Motor
Co.,
3.25%
,
02/12/32
...
6
4,322
General
Motors
Co.,
5.40%
,
10/15/29
20
18,441
General
Motors
Financial
Co.,
Inc.
3.25%,
01/05/23
............
470
467,380
3.95%,
04/13/24
............
5
4,877
4.00%,
01/15/25
............
632
607,153
Gilead
Sciences,
Inc.
4.60%,
09/01/35
............
38
34,346
4.75%,
03/01/46
............
26
22,628
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Global
Payments,
Inc.
2.65%,
02/15/25
............
USD
199
$
185,987
1.20%,
03/01/26
............
293
252,169
4.45%,
06/01/28
............
160
146,271
3.20%,
08/15/29
............
57
47,494
GLP
Capital
LP
4.00%,
01/15/30
............
34
28,395
4.00%,
01/15/31
............
27
22,070
3.25%,
01/15/32
............
40
30,069
Goldman
Sachs
Group,
Inc.
(The)
(b)
(SOFR
6
Month
+
0.54%),
0.63%,
11/17/23
...............
72
71,564
(SOFR
6
Month
+
0.51%),
0.66%,
09/10/24
...............
33
31,413
(LIBOR
USD
3
Month
+
1.17%),
4.08%,
05/15/26
..........
7
6,945
(SOFR
6
Month
+
1.11%),
2.64%,
02/24/28
...............
6
5,206
(SOFR
6
Month
+
1.85%),
3.62%,
03/15/28
...............
335
304,867
(LIBOR
USD
3
Month
+
1.51%),
3.69%,
06/05/28
..........
179
161,856
(SOFR
6
Month
+
1.28%),
2.62%,
04/22/32
...............
398
308,501
Hasbro,
Inc.,
3.90%
,
11/19/29
.....
22
19,242
HCA,
Inc.
3.50%,
09/01/30
............
9
7,432
2.38%,
07/15/31
............
82
60,657
5.50%,
06/15/47
............
28
23,654
Herc
Holdings,
Inc.,
5.50%
,
07/15/27
(a)
14
12,600
Hewlett
Packard
Enterprise
Co.
1.45%,
04/01/24
............
12
11,391
4.90%,
10/15/25
(c)
...........
38
37,665
1.75%,
04/01/26
............
34
30,249
Humana,
Inc.,
4.50%
,
04/01/25
....
10
9,857
Hyundai
Capital
America,
2.85%
,
11/01/22
(a)
................
472
471,325
iHeartCommunications,
Inc.,
5.25%
,
08/15/27
(a)
................
8
6,834
Intel
Corp.,
4.10%
,
05/19/46
......
44
35,160
Intercontinental
Exchange,
Inc.,
1.85%
,
09/15/32
.................
21
15,472
International
Business
Machines
Corp.,
7.00%
,
10/30/25
............
8
8,485
Interpublic
Group
of
Cos.,
Inc.
(The)
4.65%,
10/01/28
............
8
7,398
4.75%,
03/30/30
............
8
7,312
JPMorgan
Chase
&
Co.
(b)
(SOFR
6
Month
+
1.56%),
4.32%,
04/26/28
...............
75
70,283
(SOFR
6
Month
+
1.25%),
2.58%,
04/22/32
...............
10
7,752
(SOFR
6
Month
+
1.26%),
2.96%,
01/25/33
...............
16
12,577
(SOFR
6
Month
+
1.80%),
4.59%,
04/26/33
...............
116
104,378
Juniper
Networks,
Inc.,
2.00%
,
12/10/30
.................
5
3,689
KAR
Auction
Services,
Inc.,
5.13%
,
06/01/25
(a)
................
3
2,896
KLA
Corp.
4.10%,
03/15/29
............
29
27,555
3.30%,
03/01/50
............
36
25,287
5.25%,
07/15/62
............
25
22,977
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
39
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
L3Harris
Technologies,
Inc.
2.90%,
12/15/29
............
USD
72
$
60,811
1.80%,
01/15/31
............
141
105,477
Lam
Research
Corp.,
4.88%
,
03/15/49
25
23,054
Lamar
Media
Corp.,
3.75%
,
02/15/28
6
5,241
Level
3
Financing,
Inc.,
4.63%
,
09/15/27
(a)
................
1
828
Lowe's
Cos.,
Inc.
1.30%,
04/15/28
............
61
49,241
5.50%,
10/15/35
............
8
7,662
2.80%,
09/15/41
............
11
7,006
LYB
International
Finance
III
LLC,
4.20%
,
05/01/50
............
16
11,488
Marsh
&
McLennan
Cos.,
Inc.,
2.25%
,
11/15/30
..................
27
21,424
Masonite
International
Corp.,
5.38%
,
02/01/28
(a)
................
6
5,307
Medline
Borrower
LP,
3.88%
,
04/01/29
(a)
................
65
52,110
Micron
Technology,
Inc.,
4.66%
,
02/15/30
.................
4
3,549
Microsoft
Corp.,
3.70%
,
08/08/46
...
53
43,918
MidAmerican
Energy
Co.
3.65%,
04/15/29
............
63
58,089
4.25%,
07/15/49
............
35
29,124
Moody's
Corp.
4.25%,
08/08/32
............
57
51,656
3.75%,
02/25/52
............
8
5,919
Morgan
Stanley
3.13%,
01/23/23
............
124
123,593
(SOFR
6
Month
+
0.47%),
0.56%,
11/10/23
(b)
..............
15
14,918
(SOFR
6
Month
+
0.46%),
0.53%,
01/25/24
(b)
..............
17
16,723
(SOFR
6
Month
+
1.61%),
4.21%,
04/20/28
(b)
..............
151
141,293
(LIBOR
USD
3
Month
+
1.34%),
3.59%,
07/22/28
(b)
.........
66
59,373
(LIBOR
USD
3
Month
+
1.63%),
4.43%,
01/23/30
(b)
.........
69
63,429
(SOFR
6
Month
+
1.14%),
2.70%,
01/22/31
(b)
..............
347
281,337
(SOFR
6
Month
+
3.12%),
3.62%,
04/01/31
(b)
..............
172
148,648
Motorola
Solutions,
Inc.
2.30%,
11/15/30
............
41
30,807
5.60%,
06/01/32
............
98
93,687
5.50%,
09/01/44
............
36
30,600
National
Retail
Properties,
Inc.,
3.00%
,
04/15/52
.................
34
20,506
Navient
Corp.
5.88%,
10/25/24
............
6
5,686
6.75%,
06/25/25
............
6
5,617
6.75%,
06/15/26
............
6
5,446
Newmont
Corp.
2.80%,
10/01/29
............
13
10,762
2.25%,
10/01/30
............
41
31,715
Nexstar
Media,
Inc.,
5.63%
,
07/15/27
(a)
14
12,870
Norfolk
Southern
Corp.
3.65%,
08/01/25
............
4
3,849
3.00%,
03/15/32
............
39
32,610
3.94%,
11/01/47
............
27
20,944
3.05%,
05/15/50
............
16
10,427
4.55%,
06/01/53
............
20
16,954
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Northern
States
Power
Co.,
2.60%
,
06/01/51
.................
USD
37
$
23,007
NRG
Energy,
Inc.
2.45%,
12/02/27
(a)
...........
74
60,580
5.75%,
01/15/28
............
8
7,383
5.25%,
06/15/29
(a)
...........
8
7,000
NSTAR
Electric
Co.,
3.95%
,
04/01/30
13
12,090
Nucor
Corp.,
3.95%
,
05/01/28
.....
35
32,189
Ohio
Power
Co.
Series
P,
2.60%,
04/01/30
.....
5
4,130
Series
R,
2.90%,
10/01/51
.....
22
13,750
Omnicom
Group,
Inc.,
2.60%
,
08/01/31
5
3,925
Oncor
Electric
Delivery
Co.
LLC
3.70%,
11/15/28
............
52
48,217
3.10%,
09/15/49
............
36
24,895
Oracle
Corp.
3.60%,
04/01/40
............
132
89,589
4.00%,
07/15/46
............
14
9,462
4.00%,
11/15/47
............
4
2,680
3.60%,
04/01/50
............
99
61,945
3.95%,
03/25/51
............
11
7,295
Outfront
Media
Capital
LLC,
5.00%
,
08/15/27
(a)
................
14
12,230
Owens
Corning,
3.95%
,
08/15/29
...
26
23,269
Paramount
Global,
4.38%
,
03/15/43
.
20
13,327
PECO
Energy
Co.
2.85%,
09/15/51
............
41
26,392
4.38%,
08/15/52
............
10
8,484
Pfizer,
Inc.,
1.75%
,
08/18/31
......
38
29,656
Piedmont
Natural
Gas
Co.,
Inc.,
2.50%
,
03/15/31
.................
11
8,672
Post
Holdings,
Inc.
(a)
5.63%,
01/15/28
............
12
10,953
5.50%,
12/15/29
............
8
6,916
Prologis
LP
3.25%,
10/01/26
............
22
20,499
3.88%,
09/15/28
............
7
6,511
Public
Service
Electric
&
Gas
Co.
3.70%,
05/01/28
............
28
26,138
3.60%,
12/01/47
............
6
4,480
QUALCOMM,
Inc.,
4.30%
,
05/20/47
.
25
21,198
Realty
Income
Corp.,
3.25%
,
01/15/31
6
5,120
Republic
Services,
Inc.,
3.95%
,
05/15/28
.................
24
22,458
RHP
Hotel
Properties
LP,
4.75%
,
10/15/27
.................
8
6,960
Ryder
System,
Inc.,
4.63%
,
06/01/25
157
153,996
Salesforce,
Inc.,
3.05%
,
07/15/61
...
27
16,848
Select
Medical
Corp.,
6.25%
,
08/15/26
(a)
................
6
5,646
ServiceNow,
Inc.,
1.40%
,
09/01/30
..
68
50,066
Sherwin-Williams
Co.
(The),
2.30%
,
05/15/30
.................
23
18,371
Sirius
XM
Radio,
Inc.,
5.50%
,
07/01/29
(a)
................
14
12,593
Southern
California
Edison
Co.,
2.25%
,
06/01/30
.................
43
34,064
Southwestern
Public
Service
Co.,
Series
8,
3.15%
,
05/01/50
......
26
17,738
Standard
Industries,
Inc.
(a)
5.00%,
02/15/27
............
6
5,310
4.75%,
01/15/28
............
6
5,069
Synchrony
Financial,
4.50%
,
07/23/25
18
17,167
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
40
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
TEGNA,
Inc.
4.63%,
03/15/28
............
USD
6
$
5,540
5.00%,
09/15/29
............
6
5,523
Tenet
Healthcare
Corp.
(a)
4.88%,
01/01/26
............
22
20,444
5.13%,
11/01/27
............
6
5,384
4.38%,
01/15/30
............
10
8,347
T-Mobile
USA,
Inc.
1.50%,
02/15/26
............
69
60,562
4.75%,
02/01/28
............
367
346,452
2.05%,
02/15/28
............
232
192,514
3.88%,
04/15/30
............
117
103,781
Transcontinental
Gas
Pipe
Line
Co.
LLC
4.60%,
03/15/48
............
42
34,604
3.95%,
05/15/50
............
38
28,062
Union
Pacific
Corp.
3.55%,
05/20/61
............
40
27,847
2.97%,
09/16/62
............
9
5,448
UnitedHealth
Group,
Inc.
4.25%,
06/15/48
............
7
5,798
2.90%,
05/15/50
............
28
18,390
Verizon
Communications,
Inc.
2.10%,
03/22/28
............
133
112,280
3.15%,
03/22/30
............
146
124,186
2.55%,
03/21/31
............
180
143,717
4.27%,
01/15/36
............
67
57,167
4.86%,
08/21/46
............
34
29,324
3.70%,
03/22/61
............
12
8,147
VICI
Properties
LP,
4.95%
,
02/15/30
.
38
34,341
VMware,
Inc.,
4.70%
,
05/15/30
....
69
62,072
Walt
Disney
Co.
(The),
4.75%
,
09/15/44
.................
35
31,249
Waste
Pro
USA,
Inc.,
5.50%
,
02/15/26
(a)
................
6
5,271
Wells
Fargo
&
Co.,
(SOFR
6
Month
+
1.50%),
3.35%
,
03/02/33
(b)
.....
30
24,329
Western
Digital
Corp.,
2.85%
,
02/01/29
67
52,068
WP
Carey,
Inc.
4.00%,
02/01/25
............
12
11,607
4.25%,
10/01/26
............
8
7,538
3.85%,
07/15/29
............
8
7,057
2.40%,
02/01/31
............
13
9,978
2.45%,
02/01/32
............
18
13,432
12,016,790
Total
Corporate
Bonds
—
36.4%
(Cost:
$17,607,798)
..............................
14,980,061
Foreign
Agency
Obligations
Germany
—
0.8%
Kreditanstalt
fuer
Wiederaufbau
(d)
2.00%,
11/15/29
............
EUR
223
209,051
1.38%,
06/07/32
............
127
109,444
318,495
Security
Par
(000)
Par
(000)
Value
Supranational
—
1.1%
European
Investment
Bank
(d)
2.25%,
03/15/30
............
EUR
220
$
207,314
1.50%,
06/15/32
............
281
242,361
449,675
Total
Foreign
Agency
Obligations
—
1.9%
(Cost:
$878,612)
................................
768,170
Foreign
Government
Obligations
Belgium
—
1.1%
Kingdom
of
Belgium,
1.25%
,
04/22/33
(a)
(d)
......................
530
449,564
France
—
0.3%
French
Republic,
0.50%
,
06/25/44
(a)(d)
220
131,216
Ireland
—
1.0%
Republic
of
Ireland,
1.35%
,
03/18/31
(d)
450
404,360
Mexico
—
0.4%
United
Mexican
States,
2.66%
,
05/24/31
.................
USD
200
153,400
Netherlands
—
0.3%
Kingdom
of
Netherlands,
0.50%
,
01/15/40
(a)(d)
...............
EUR
170
117,887
Panama
—
0.4%
Republic
of
Panama,
3.88%
,
03/17/28
USD
200
181,225
Peru
—
0.1%
Republic
of
Peru,
3.55%
,
03/10/51
..
35
23,271
United
Kingdom
—
0.4%
U.K.
Treasury
Bonds,
0.88%
,
07/31/33
(d)
................
GBP
226
179,363
Uruguay
—
0.0%
Oriental
Republic
of
Uruguay,
5.10%
,
06/18/50
.................
USD
25
22,770
Total
Foreign
Government
Obligations
—
4.0%
(Cost:
$2,257,104)
..............................
1,663,056
Municipal
Bonds
California
-
0.4%
Bay
Area
Toll
Authority
,
Series
2010S-1,
RB,
7.04%, 04/01/50
.........
20
24,601
Los
Angeles
Community
College
District
,
Series
2010E,
GO,
6.60%, 08/01/42
............
5
5,627
Los
Angeles
Unified
School
District
,
Series
2010RY,
GO,
6.76%, 07/01/34
............
20
22,026
State
of
California
,
Series
2018,
GO,
4.60%, 04/01/38
............
70
65,136
University
of
California
,
Series
2012AD,
RB,
4.86%, 05/15/12
.........
5
4,155
121,545
Illinois
-
0.1%
State
of
Illinois
,
Series
2003,
GO,
5.10%, 06/01/33
............
40
38,023
New
Jersey
-
0.0%
New
Jersey
Turnpike
Authority
,
Series
2009F,
RB,
7.41%, 01/01/40
....
8
9,738
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
41
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
Security
Par
(000)
Par
(000)
Value
New
York
-
0.0%
Metropolitan
Transportation
Authority
,
Series
2009A-1,
RB,
5.87%, 11/15/39
............
USD
10
$
9,998
New
York
City
Municipal
Water
Finance
Authority
,
Series
2010EE,
RB,
6.01%, 06/15/42
............
5
5,443
Port
Authority
of
New
York
&
New
Jersey
,
Series
2011-168,
RB,
4.93%, 10/01/51
............
15
14,237
29,678
Ohio
-
0.0%
American
Municipal
Power,
Inc.
,
Series
2010A,
RB,
8.08%, 02/15/50
....
10
13,179
Texas
-
0.1%
City
of
San
Antonio
Electric
&
Gas
Systems
,
Series
2010A,
RB,
5.81%, 02/01/41
............
10
10,394
State
of
Texas
,
Series
2009A,
GO,
5.52%, 04/01/39
............
15
15,671
26,065
Total
Municipal
Bonds
—
0.6%
(Cost:
$311,124)
................................
238,228
Non-Agency
Mortgage-Backed
Securities
Collateralized
Mortgage
Obligations
—
1.0%
United
States
—
1.0%
(b)
Alternative
Loan
Trust,
Series
2006-
OC10,
Class
2A3,
(LIBOR
USD
1
Month
+
0.46%),
3.54%,
11/25/36
.
190
167,170
Federal
National
Mortgage
Association
Variable
Rate
Notes,
Series
2021-R02,
Class
2B1,
(SOFR
30
Day
Average
+
3.30%),
5.58%,
11/25/41
(a)
................
296
267,171
434,341
Commercial
Mortgage-Backed
Securities
—
5.5%
(a)
Cayman
Islands
—
1.2%
(b)
MF1,
Series
2021-W10,
Class
G,
(1
Month
CME
Term
SOFR
+
4.22%),
7.07%,
12/15/34
............
250
239,458
STWD
Mortgage
Trust,
Series
2021-
LIH,
Class
F,
(LIBOR
USD
1
Month
+
3.55%),
6.37%,
11/15/36
.....
250
229,859
469,317
United
States
—
4.3%
1211
Avenue
of
the
Americas
Trust,
Series
2015-1211,
Class
A1A2,
3.90%,
08/10/35
............
250
235,591
Commercial
Mortgage
Trust,
Series
2013-300P,
Class
D,
4.54%,
08/10/30
(b)
................
150
140,857
Grace
Trust,
Series
2020-GRCE,
Class
D,
2.77%,
12/10/40
(b)
.........
250
174,170
GS
Mortgage
Securities
Corp.
Trust,
Series
2021-DM,
Class
F,
(LIBOR
USD
1
Month
+
3.44%),
6.25%,
11/15/36
(b)
................
250
228,171
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
(b)
Series
2021-MHC,
Class
D,
(LIBOR
USD
1
Month
+
1.70%),
4.52%,
04/15/38
...............
250
236,213
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Series
2022-OPO,
Class
D,
3.56%,
01/05/39
...............
USD
160
$
125,538
MHC
Commercial
Mortgage
Trust,
Series
2021-MHC,
Class
F,
(LIBOR
USD
1
Month
+
2.60%),
5.42%,
04/15/38
(b)
................
250
232,081
SUMIT
Mortgage
Trust,
Series
2022-
BVUE,
Class
D,
2.99%,
02/12/41
(b)
40
28,974
Velocity
Commercial
Capital
Loan
Trust,
Series
2021-4,
Class
M4,
4.48%,
12/26/51
(b)
...........
479
384,382
1,785,977
2,255,294
Total
Non-Agency
Mortgage-Backed
Securities
—
6.5%
(Cost:
$3,020,900)
..............................
2,689,635
Preferred
Securities
Capital
Trusts
—
0.2%
United
States
—
0.2%
(b)(e)
Charles
Schwab
Corp.
(The),
Series
H
,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
10
Year
+
3.08%),
4.00%
.............
8
5,877
Citigroup,
Inc.
,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.42%),
3.88%
.
21
17,317
State
Street
Corp.,
Series
H
,
(LIBOR
USD
3
Month
+
2.54%),
5.63%
..
53
48,892
72,086
Total
Preferred
Securities
—
0.2%
(Cost:
$84,190)
................................
72,086
U.S.
Government
Sponsored
Agency
Securities
(f)
Mortgage-Backed
Securities
—
41.3%
Federal
National
Mortgage
Association,
3.00%, 12/01/50
............
724
638,395
Government
National
Mortgage
Association
2.00%
,
 08/20/50
-
11/20/50
...
176
147,647
2.50%
,
 10/20/51
-
12/20/51
...
310
267,255
3.00%
,
 03/20/52
..........
286
253,316
3.50%
,
 03/20/52
..........
69
62,861
4.00%
,
 03/20/52
..........
16
15,338
2.00%
,
 10/15/52
(f)
.........
514
427,945
2.50%
,
 10/15/52
(f)
.........
403
346,226
3.00%
,
 10/15/52
-
11/15/52
(f)
..
731
645,834
3.50%
,
 10/15/52
-
11/15/52
(f)
..
688
625,177
4.00%
,
 10/15/52
-
11/15/52
(f)
..
509
474,815
4.50%
,
 10/15/52
-
11/15/52
(f)
..
131
125,348
5.00%
,
 10/15/52
-
11/15/52
(f)
..
59
57,698
Uniform
Mortgage-Backed
Securities
1.50%
,
 10/25/37
-
10/25/52
(f)
..
783
635,439
2.00%
,
 10/25/37
-
11/25/52
(f)
..
671
590,881
2.50%
,
 10/25/37
-
11/25/52
(f)
..
958
826,118
3.00%
,
 10/25/37
-
11/25/52
(f)
..
900
792,435
3.50%
,
 10/25/37
-
11/25/52
(f)
..
80
75,279
4.00%
,
 09/01/47
-
04/01/52
...
1,206
1,127,837
4.50%
,
 06/01/50
..........
253
243,978
2.00%
,
 10/01/51
-
11/01/51
...
2,857
2,320,136
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
42
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2022
x
Security
Par
(000)
Par
(000)
Value
Mortgage-Backed
Securities
(continued)
2.50%
,
 11/01/51
-
12/01/51
...
USD
2,777
$
2,342,200
3.00%
,
 11/01/51
..........
254
226,452
3.50%
,
 11/01/51
..........
952
881,472
4.00%
,
 10/25/52
-
11/25/52
(f)
..
1,654
1,534,646
4.50%
,
 10/25/52
-
11/25/52
(f)
..
780
742,963
5.00%
,
 10/25/52
-
11/25/52
(f)
..
605
589,244
17,016,935
Total
U.S.
Government
Sponsored
Agency
Securities
—
41.3%  
(Cost:
$18,479,679)
..............................
17,016,935
U.S.
Treasury
Obligations
U.S.
Treasury
Bonds
1.13%, 05/15/40
-
08/15/40
.....
412
256,333
1.38%, 11/15/40
............
206
133,168
1.75%, 08/15/41
............
206
140,844
2.75%, 11/15/47
............
298
238,377
3.00%, 02/15/48
-
08/15/52
.....
339
286,261
2.38%, 05/15/51
............
212
158,602
2.00%, 08/15/51
............
63
42,690
1.88%, 11/15/51
............
3
1,852
2.88%, 05/15/52
............
226
189,522
U.S.
Treasury
Notes
2.50%, 04/30/24
............
1,066
1,036,269
0.75%, 11/15/24
............
42
39,027
0.88%, 09/30/26
............
92
80,935
1.13%, 10/31/26
............
58
51,423
1.50%, 01/31/27
............
7
6,275
1.88%, 02/28/27
-
02/28/29
.....
28
25,378
0.63%, 03/31/27
............
189
162,134
0.50%, 04/30/27
-
05/31/27
.....
412
349,909
2.75%, 04/30/27
-
08/15/32
.....
320
300,262
4.13%, 09/30/27
............
29
29,095
1.25%, 03/31/28
............
27
23,280
1.75%, 01/31/29
............
10
8,732
2.88%, 04/30/29
............
65
60,678
2.63%, 07/31/29
............
19
17,459
3.13%, 08/31/29
............
11
10,440
Total
U.S.
Treasury
Obligations
—
8.9%
(Cost:
$4,348,791)
..............................
3,648,945
Total
Long-Term
Investments
—
114.2%
(Cost:
$53,366,724)
..............................
46,987,437
Security
Shares
Shares
Value
Short-Term
Securities
Money
Market
Funds
—
4.9%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
2.79%
(g)(h)
....
2,006,214
$
2,006,214
Total
Short-Term
Securities
—
4.9%
(Cost:
$2,006,214)
..............................
2,006,214
Total
Options
Purchased
—
0.3%
(Cost:
$67,945
)
................................
132,251
Total
Investments
Before
Options
Written
and
TBA
Sale
Commitments
—
119.4%
(Cost:
$55,440,883)
..............................
49,125,902
Total
Options
Written
—
(0.9)%
(Premiums
Received
—
$(201,746))
..................
(351,013)
Par
(000)
Pa
r
(
000)
TBA
Sale
Commitments
(f)
Government
National
Mortgage
Association
2.50%
,
 10/15/52
............
USD
(5)
(4,296)
3.00%
,
 10/15/52
............
(18)
(16,170)
3.50%
,
 10/15/52
-
11/15/52
.....
(129)
(117,304)
Uniform
Mortgage-Backed
Securities
2.00%
,
 10/25/37
-
10/25/52
.....
(60)
(52,366)
2.50%
,
 10/25/37
-
11/25/52
.....
(2,008)
(1,686,060)
1.50%
,
 11/25/37
-
11/25/52
.....
(7)
(5,731)
3.00%
,
 11/25/37
-
11/25/52
.....
(945)
(822,368)
3.50%
,
 10/25/52
............
(343)
(308,673)
4.00%
,
 10/25/52
-
11/25/52
.....
(1,697)
(1,574,356)
4.50%
,
 10/25/52
............
(678)
(645,848)
5.00%
,
 10/25/52
............
(380)
(370,146)
Total
TBA
Sale
Commitments
—
(13.6)%
(Proceeds:
$(5,786,850))
..........................
(5,603,318)
Total
Investments
Net
of
Options
Written
and
TBA
Sale
Commitments
—
104.9%
(Cost:
$49,452,287)
..............................
43,171,571
Liabilities
in
Excess
of
Other
Assets
—
(4.9)%
............
(2,014,833)
Net
Assets
—
100.0%
..............................
$
41,156,738
(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.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(c)
Step
coupon
security.
Coupon
rate
will
either
increase
(step-up
bond)
or
decrease
(step-down
bond)
at
regular
intervals
until
maturity.
Interest
rate
shown
reflects
the
rate
currently
in
effect.
(d)
This
security
may
be
resold
to
qualified
foreign
investors
and
foreign
institutional
buyers
under
Regulation
S
of
the
Securities
Act
of
1933.
(e)
Perpetual
security
with
no
stated
maturity
date.
(f)
Represents
or
includes
a
TBA
transaction.
(g)
Annualized
7-day
yield
as
of
period
end.
(h)
Affiliate
of
the
Fund.
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
43
Schedule
of
Investments
(continued)
September
30,
2022
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
period
ended
September
30,
2022
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
10/18/21
(a)
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/22
Shares
Held
at
09/30/22
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
...
$
—
$
2,006,214
(b)
$
—
$
—
$
—
$
2,006,214
2,006,214
$
14,187
$
—
—
—
(a)
Commencement
of
operations.
(b)
Represents
net
amount
purchased
(sold).
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
44
Schedule
of
Investments
(continued)
September
30,
2022
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
10
Year
Note
...................................................
14
12/20/22
$
1,569
$
(71,677)
U.S.
Treasury
Long
Bond
....................................................
12
12/20/22
1,518
(84,949)
U.S.
Treasury
Ultra
Bond
....................................................
7
12/20/22
957
(51,792)
U.S.
Treasury
2
Year
Note
....................................................
7
12/30/22
1,437
(12,474)
U.S.
Treasury
5
Year
Note
....................................................
37
12/30/22
3,975
(81,561)
(302,453)
Short
Contracts
Euro-
Bobl
...............................................................
12
12/08/22
1,408
34,873
Euro-BTP
...............................................................
4
12/08/22
439
8,977
Euro-Bund
..............................................................
1
12/08/22
136
(1,689)
Euro-
Buxl
...............................................................
1
12/08/22
144
11,655
Euro-OAT
...............................................................
9
12/08/22
1,165
54,512
Euro-Schatz
.............................................................
1
12/08/22
105
1,077
U.S.
Treasury
10
Year
Ultra
Note
...............................................
1
12/20/22
119
343
Long
Gilt
...............................................................
2
12/28/22
215
29,533
3
Month
SOFR
...........................................................
9
06/20/23
2,150
2,006
141,287
$
(161,166)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
EUR
209,000
GBP
182,283
Deutsche
Bank
AG
12/21/22
$
2,352
GBP
192,513
EUR
212,000
JPMorgan
Chase
Bank
NA
12/21/22
6,126
USD
354,854
EUR
357,855
Deutsche
Bank
AG
12/21/22
1,915
USD
4,181,797
EUR
4,160,000
HSBC
Bank
plc
12/21/22
78,951
USD
310,480
EUR
308,379
UBS
AG
12/21/22
6,339
USD
191,992
GBP
167,000
Bank
of
America
NA
12/21/22
5,300
100,983
EUR
212,000
GBP
190,728
Morgan
Stanley
&
Co.
International
plc
12/21/22
(4,131)
EUR
206,000
USD
203,946
Morgan
Stanley
&
Co.
International
plc
12/21/22
(776)
JPY
148,312
USD
1,038
Morgan
Stanley
&
Co.
International
plc
12/21/22
(4)
(4,911)
$
96,072
OTC
Currency
Options
Purchased
Description
Counterparty
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
EUR
Currency
...........................
Deutsche
Bank
AG
10/24/22
USD
0.98
EUR
884
$
11,608
$
—
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
45
Schedule
of
Investments
(continued)
September
30,
2022
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
(a)
1
day
SOFR
Annual
2.96%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
09/03/24
2.96
%
USD
104
$
3,668
10-Year
Interest
Rate
Swap
(a)
1
day
SOFR
Annual
3.25%
Semi-Annual
Goldman
Sachs
International
09/23/24
3.25
USD
21
980
10-Year
Interest
Rate
Swap
(a)
1
day
SOFR
Annual
3.28%
Semi-Annual
Goldman
Sachs
International
09/23/24
3.28
USD
82
3,879
10-Year
Interest
Rate
Swap
(a)
1
day
SOFR
Annual
3.14%
Semi-Annual
BNP
Paribas
SA
09/23/25
3.14
USD
38
1,860
10,387
Put
10-Year
Interest
Rate
Swap
(a)
2.51%
Semi-Annual
1
day
SOFR
Annual
Goldman
Sachs
International
08/10/23
2.51
USD
522
46,909
10-Year
Interest
Rate
Swap
(a)
2.48%
Semi-Annual
1
day
SOFR
Annual
Goldman
Sachs
International
08/10/23
2.48
USD
522
47,934
10-Year
Interest
Rate
Swap
(a)
2.96%
Semi-Annual
1
day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
09/03/24
2.96
USD
104
7,158
10-Year
Interest
Rate
Swap
(a)
3.28%
Semi-Annual
1
day
SOFR
Annual
Goldman
Sachs
International
09/23/24
3.28
USD
82
4,579
10-Year
Interest
Rate
Swap
(a)
3.25%
Semi-Annual
1
day
SOFR
Annual
Goldman
Sachs
International
09/23/24
3.25
USD
21
1,221
10-Year
Interest
Rate
Swap
(a)
3.14%
Semi-Annual
1
day
SOFR
Annual
BNP
Paribas
SA
09/23/25
3.14
USD
38
2,455
110,256
$
120,643
(a)
Forward
settling
swaption.
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
3
Month
SOFR
Interest
Futures
...................
18
03/10/23
USD
96.25
USD
4,500
$
(5,963)
Put
3
Month
SOFR
Interest
Futures
...................
18
03/10/23
USD
96.25
USD
4,500
(35,662)
$
(41,625)
OTC
Currency
Options
Written
Description
Counterparty
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
EUR
Currency
.............................
Deutsche
Bank
AG
10/24/22
USD
0.96
EUR
884
$
(5,601)
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
(a)
2.41%
Semi-Annual
1
day
SOFR
Annual
Bank
of
America
NA
08/10/23
2.41
%
USD
657
$
(5,859)
2-Year
Interest
Rate
Swap
(a)
.
1.77%
Semi-Annual
1
day
SOFR
Annual
Goldman
Sachs
International
08/11/23
1.77
USD
2,293
(2,447)
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
46
Schedule
of
Investments
(continued)
September
30,
2022
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
2-Year
Interest
Rate
Swap
(a)
.
3.10%
Semi-Annual
1
day
SOFR
Annual
Bank
of
America
NA
09/08/23
3.10
%
USD
2,583
$
(13,566)
(21,872)
Put
10-Year
Interest
Rate
Swap
(a)
1
day
SOFR
Annual
2.41%
Semi-Annual
Bank
of
America
NA
08/10/23
2.41
USD
657
(63,335)
10-Year
Interest
Rate
Swap
(a)
1
day
SOFR
Annual
3.10%
Semi-Annual
Goldman
Sachs
International
08/10/23
3.10
USD
348
(19,337)
10-Year
Interest
Rate
Swap
(a)
1
day
SOFR
Annual
3.20%
Semi-Annual
Goldman
Sachs
International
08/10/23
3.20
USD
348
(17,655)
1-Year
Interest
Rate
Swap
(a)
.
1
day
SOFR
At
Termination
3.48%
At
Termination
Goldman
Sachs
International
08/10/23
3.48
USD
9,415
(96,542)
2-Year
Interest
Rate
Swap
(a)
.
1
day
SOFR
Annual
3.77%
Semi-Annual
Goldman
Sachs
International
08/11/23
3.77
USD
2,293
(30,688)
2-Year
Interest
Rate
Swap
(a)
.
1
day
SOFR
Annual
3.10%
Semi-Annual
Bank
of
America
NA
09/08/23
3.10
USD
2,583
(54,358)
(281,915)
$
(303,787)
(a)
Forward
settling
swaption.
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.39.V1
...................
1.00
%
Quarterly
12/20/27
USD
831
$
2,598
$
3,811
$
(1,213)
Centrally
Cleared
Interest
Rate
Swap
s
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)
6
month
EURIBOR
Semi-Annual
1.52%
Annual
N/A
02/15/31
EUR
27
$
(2,796)
$
—
$
(2,796)
6
month
EURIBOR
Semi-Annual
1.52%
Annual
N/A
02/15/31
EUR
36
(3,738)
—
(3,738)
6
month
EURIBOR
Semi-Annual
1.54%
Annual
N/A
02/15/31
EUR
73
(7,429)
—
(7,429)
6
month
EURIBOR
Semi-Annual
1.55%
Annual
N/A
02/15/31
EUR
27
(2,727)
—
(2,727)
6
month
EURIBOR
Semi-Annual
1.55%
Annual
N/A
02/15/31
EUR
37
(3,697)
—
(3,697)
6
month
EURIBOR
Semi-Annual
1.56%
Annual
N/A
02/15/31
EUR
73
(7,310)
—
(7,310)
6
month
EURIBOR
Semi-Annual
1.57%
Annual
N/A
02/15/31
EUR
73
(7,263)
—
(7,263)
6
month
EURIBOR
Semi-Annual
1.59%
Annual
N/A
02/15/31
EUR
37
(3,563)
—
(3,563)
6
month
EURIBOR
Semi-Annual
1.64%
Annual
N/A
02/15/31
EUR
18
(1,685)
—
(1,685)
6
month
EURIBOR
Semi-Annual
1.65%
Annual
N/A
02/15/31
EUR
37
(3,398)
—
(3,398)
6
month
EURIBOR
Semi-Annual
1.65%
Annual
N/A
02/15/31
EUR
18
(1,683)
—
(1,683)
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
47
Schedule
of
Investments
(continued)
September
30,
2022
i
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)
6
month
EURIBOR
Semi-Annual
1.69%
Annual
N/A
02/15/31
EUR
19
$
(1,675)
$
—
$
(1,675)
6
month
EURIBOR
Semi-Annual
1.82%
Annual
N/A
02/15/31
EUR
59
(4,757)
—
(4,757)
0.31%
Annual
1
day
TONAR
Annual
N/A
04/07/32
JPY
10,385
1,266
—
1,266
0.31%
Annual
1
day
TONAR
Annual
N/A
04/07/32
JPY
11,710
1,426
—
1,426
0.30%
Annual
1
day
TONAR
Annual
N/A
04/07/32
JPY
11,845
1,507
—
1,507
0.39%
Annual
1
day
TONAR
Annual
N/A
05/02/32
JPY
7,208
485
—
485
0.42%
Annual
1
day
TONAR
Annual
N/A
06/14/32
JPY
16,108
872
—
872
0.42%
Annual
1
day
TONAR
Annual
N/A
06/14/32
JPY
14,284
812
—
812
0.42%
Annual
1
day
TONAR
Annual
N/A
06/14/32
JPY
29,968
1,606
—
1,606
0.42%
Annual
1
day
TONAR
Annual
N/A
07/11/32
JPY
15,068
897
—
897
0.45%
Annual
1
day
TONAR
Annual
N/A
07/12/32
JPY
15,083
681
—
681
0.33%
Annual
1
day
TONAR
Annual
N/A
08/01/32
JPY
12,427
1,549
—
1,549
0.34%
Annual
1
day
TONAR
Annual
N/A
08/02/32
JPY
12,427
1,496
—
1,496
0.37%
Annual
1
day
TONAR
Annual
N/A
08/24/32
JPY
42,522
4,466
—
4,466
2.57%
Annual
6
month
EURIBOR
Semi-Annual
N/A
09/19/32
EUR
500
20,213
—
20,213
0.86%
Annual
1
day
TONAR
Annual
N/A
05/09/52
JPY
4,707
2,142
—
2,142
0.86%
Annual
1
day
TONAR
Annual
N/A
05/09/52
JPY
2,594
1,204
—
1,204
0.89%
Annual
1
day
TONAR
Annual
N/A
05/10/52
JPY
2,389
983
—
983
0.82%
Annual
1
day
TONAR
Annual
N/A
05/30/52
JPY
2,624
1,408
—
1,408
0.81%
Annual
1
day
TONAR
Annual
N/A
05/30/52
JPY
2,624
1,442
—
1,442
0.87%
Annual
1
day
TONAR
Annual
N/A
05/30/52
JPY
2,624
1,179
—
1,179
0.83%
Annual
1
day
TONAR
Annual
N/A
05/30/52
JPY
2,624
1,356
—
1,356
$
(4,731)
$
—
$
(4,731)
OTC
Credit
Default
Swap
s
—
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)
Abbott
Laboratories
........
1.00
%
Quarterly
JPMorgan
Chase
Bank
NA
06/20/27
USD
17
$
(467)
$
(369)
$
(98)
$
–
$
–
$
–
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
1
day
SOFR
.........................................
Secured
Overnight
Financing
Rate
2.59
%
1
day
TONAR
........................................
Tokyo
Overnight
Average
Rate
0.73
6
month
EURIBOR
.....................................
Euro
Interbank
Offered
Rate
1.90
Balances
Reported
in
the
Statements
of
Assets
and
Liabilities
for
Centrally
Cleared
Swaps,
OTC
Swaps
and
Options
Written
Description
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
Value
Centrally
Cleared
Swaps
(a)
...........................................
$
3,811
$
—
$
46,990
$
(52,934)
$
—
OTC
Swaps
.....................................................
—
(369)
—
(98)
—
Options
Written
...................................................
N/A
N/A
45,552
(194,819)
(351,013)
(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.
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
48
Schedule
of
Investments
(continued)
September
30,
2022
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)
.....
$
—
$
—
$
—
$
—
$
142,976
$
—
$
142,976
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
100,983
—
—
100,983
Options
purchased
(b)
Investments
at
value
—
unaffiliated
(c)
...........
—
—
—
11,608
120,643
—
132,251
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
46,990
—
46,990
$
—
$
—
$
—
$
112,591
$
310,609
$
—
$
423,200
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
$
—
$
—
$
—
$
—
$
304,142
$
—
$
304,142
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
4,911
—
—
4,911
Options
written
(b)
Options
written
at
value
.....................
—
—
—
5,601
345,412
—
351,013
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
1,213
—
—
51,721
—
52,934
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
467
—
—
—
—
467
$
—
$
1,680
$
—
$
10,512
$
701,275
$
—
$
713,467
(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
forward
settling
swaptions.
(c)
Includes
options
purchased
at
value
as
reported
in
the
Schedule
of
Investments.
For
the
period
ended
September
30,
2022,
the
effect
of
derivative
financial
instruments
in
the
Statements
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
(488,428)
$
—
$
(488,428)
Forward
foreign
currency
exchange
contracts
....
—
—
—
707,337
—
—
707,337
Options
purchased
(a)
....................
—
—
—
(50,220)
12,522
—
(37,698)
Options
written
........................
—
—
—
32,029
(43,234)
—
(11,205)
Swaps
..............................
—
(3,813)
—
—
52,396
(79,734)
(31,151)
$
—
$
(3,813)
$
—
$
689,146
$
(466,744)
$
(79,734)
$
138,855
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
(161,166)
$
—
$
(161,166)
Forward
foreign
currency
exchange
contracts
....
—
—
—
96,072
—
—
96,072
Options
purchased
(b)
....................
—
—
—
4,044
60,262
—
64,306
Options
written
........................
—
—
—
(2,632)
(146,635)
—
(149,267)
Swaps
..............................
—
(1,311
)
—
—
(
4,731
)
—
(6,042)
$
—
$
(1,311)
$
—
$
97,484
$
(252,270)
$
—
$
(156,097)
(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.
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
49
Schedule
of
Investments
(continued)
September
30,
2022
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
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
10,490,895
Average
notional
value
of
contracts
—
short
.................................................................................
$
7,045,431
Forward
foreign
currency
exchange
contracts
Average
amounts
purchased
—
in
USD
....................................................................................
$
5,027,875
Average
amounts
sold
—
in
USD
........................................................................................
$
331,761
Options
Average
value
of
option
contracts
purchased
................................................................................
$
6,579
Average
value
of
option
contracts
written
...................................................................................
$
12,162
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
$
2,734,026
Average
notional
value
of
swaption
contracts
written
...........................................................................
$
8,951,294
Credit
default
swaps
Average
notional
value
—
buy
protection
...................................................................................
$
220,306
Interest
rate
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
1,553,000
Average
notional
value
—
receives
fixed
rate
................................................................................
$
9,551,895
Inflation
swaps
Average
notional
value
—
receives
fixed
rate
................................................................................
$
753,250
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments
$
—
Futures
contracts
....................................................................................
$
1,958
$
57,708
Forward
foreign
currency
exchange
contracts
.................................................................
100,983
4,911
Options
(a)(b)
........................................................................................
132,251
351,013
Swaps
—
centrally
cleared
..............................................................................
—
15,453
Swaps
—
OTC
(c)
....................................................................................
—
467
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
235,192
$
429,552
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(1,958)
(114,786)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
233,234
$
314,766
(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
forward
settling
swaptions.
(c)
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
..............................
$
5,300
$
(5,300)
$
—
$
—
$
—
BNP
Paribas
SA
.................................
4,315
—
—
—
4,315
Deutsche
Bank
AG
...............................
15,87
5
(5,601)
—
—
10,27
4
Goldman
Sachs
International
........................
105,502
(105,502)
—
—
—
HSBC
Bank
plc
..................................
78,951
—
—
—
78,951
JPMorgan
Chase
Bank
NA
..........................
6,126
(46
7
)
—
—
5,6
59
Morgan
Stanley
&
Co.
International
plc
..................
10,826
(4,911)
—
—
5,915
UBS
AG
......................................
6,33
9
—
—
—
6,33
9
$
233,234
$
(121,78
1
)
$
—
$
—
$
111,45
3
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
50
Schedule
of
Investments
(continued)
September
30,
2022
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
..............................
$
137,118
$
(5,300)
$
—
$
—
$
131,818
Deutsche
Bank
AG
...............................
5,601
(5,601)
—
—
—
Goldman
Sachs
International
........................
166,669
(105,502)
—
—
61,167
JPMorgan
Chase
Bank
NA
..........................
46
7
(46
7
)
—
—
—
Morgan
Stanley
&
Co.
International
plc
..................
4,91
1
(4,91
1
)
—
—
—
$
314,766
$
(121,781)
$
—
$
—
$
192,985
(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.
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
51
Schedule
of
Investments
(continued)
September
30,
2022
See
notes
to
financial
statements.
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund’s
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Asset-Backed
Securities
...................................
$
—
$
5,910,321
$
—
$
5,910,321
Corporate
Bonds
........................................
—
14,980,061
—
14,980,061
Foreign
Agency
Obligations
.................................
—
768,170
—
768,170
Foreign
Government
Obligations
..............................
—
1,663,056
—
1,663,056
Municipal
Bonds
.........................................
—
238,228
—
238,228
Non-Agency
Mortgage-Backed
Securities
........................
—
2,689,635
—
2,689,635
Preferred
Securities
.......................................
—
72,086
—
72,086
U.S.
Government
Sponsored
Agency
Securities
....................
—
17,016,935
—
17,016,935
U.S.
Treasury
Obligations
...................................
—
3,648,945
—
3,648,945
Short-Term
Securities
Money
Market
Funds
......................................
2,006,214
—
—
2,006,214
Options
Purchased
Foreign
currency
exchange
contracts
...........................
—
11,608
—
11,608
Interest
rate
contracts
......................................
—
120,643
—
120,643
Liabilities
Investments
TBA
Sale
Commitments
....................................
—
(5,603,318)
—
(5,603,318)
$
2,006,214
$
41,516,370
$
—
$
43,522,584
Derivative
Financial
Instruments
(a)
Assets
Foreign
currency
exchange
contracts
............................
$
—
$
100,983
$
—
$
100,983
Interest
rate
contracts
.......................................
142,976
46,990
—
189,966
Liabilities
Credit
contracts
...........................................
—
(1,311)
—
(1,311)
Foreign
currency
exchange
contracts
............................
—
(10,512)
—
(10,512)
Interest
rate
contracts
.......................................
(345,767)
(355,508)
—
(701,275)
$
(202,791)
$
(219,358)
$
—
$
(422,149)
(a)
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.
Statements
of
Assets
and
Liabilities

September
30,
2022
2022
BlackRock
Annual
Report
to
Shareholders
52
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
BlackRock
Sustainable
Total
Return
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
..........................................................
$
39,638,779‌
$
47,312,938‌
$
47,119,688‌
Investments,
at
value
—
affiliated
(b)
............................................................
1,002,589‌
1,345,914‌
2,006,214‌
Cash  
...............................................................................
28,707‌
—‌
—‌
Cash
pledged:
Futures
contracts
......................................................................
4,000‌
232,000‌
360,000‌
Centrally
cleared
swaps
..................................................................
—‌
60,000‌
64,000‌
Foreign
currency,
at
value
(c)
.................................................................
—‌
54,583‌
348,925‌
Receivables:
–‌
–‌
–‌
Investments
sold
......................................................................
145,836‌
1,379,563‌
—‌
Swaps  
............................................................................
—‌
—‌
3,863‌
TBA
sale
commitments
..................................................................
—‌
717,148‌
5,786,850‌
Dividends
—
unaffiliated
.................................................................
118‌
—‌
—‌
Dividends
—
affiliated
...................................................................
2,217‌
1,718‌
3,000‌
Interest
—
unaffiliated
...................................................................
577,522‌
216,338‌
261,247‌
From
the
Manager
.....................................................................
82,555‌
14,922‌
35,765‌
Variation
margin
on
futures
contracts
.........................................................
768‌
31,949‌
1,958‌
Variation
margin
on
centrally
cleared
swaps
....................................................
—‌
5,986‌
—‌
Unrealized
appreciation
on:
–‌
–‌
–‌
Forward
foreign
currency
exchange
contracts
...................................................
—‌
82,000‌
100,983‌
Deferred
offering
costs
....................................................................
—‌
6,673‌
8,992‌
Prepaid
expenses
.......................................................................
42,931‌
45,792‌
53,434‌
Total
assets
...........................................................................
41,526,022‌
51,507,524‌
56,154,919‌
LIABILITIES
Bank
overdraft
..........................................................................
—‌
4,019‌
7,235‌
Due
to
broker
..........................................................................
—‌
90,826‌
—‌
Options
written,
at
value
(d)
..................................................................
—‌
—‌
351,013‌
TBA
sale
commitments,
at
value
(e)
............................................................
—‌
714,434‌
5,603,318‌
Payables:
–‌
–‌
–‌
Investments
purchased
..................................................................
273,015‌
4,215,602‌
8,735,506‌
Accounting
services
fees
.................................................................
20,634‌
12,710‌
12,663‌
Administration
fees
.....................................................................
3‌
4‌
5‌
Custodian
fees
........................................................................
1,616‌
9,073‌
2,850‌
Income
dividend
distributions
..............................................................
179,029‌
88,739‌
103,356‌
Investment
advisory
fees
.................................................................
—‌
7‌
16‌
Professional
fees
......................................................................
128,244‌
59,834‌
102,954‌
Registration
fees
......................................................................
198‌
—‌
—‌
Service
fees
.........................................................................
17‌
22‌
19‌
Transfer
agent
fees
....................................................................
717‌
575‌
587‌
Other
accrued
expenses
.................................................................
42‌
4,522‌
120‌
Variation
margin
on
futures
contracts
.........................................................
—‌
30,236‌
57,708‌
Variation
margin
on
centrally
cleared
swaps
....................................................
—‌
—‌
15,453‌
Swap
premiums
received
..................................................................
—‌
—‌
369‌
Unrealized
depreciation
on:
–‌
–‌
–‌
Forward
foreign
currency
exchange
contracts
...................................................
—‌
—‌
4,911‌
OTC
swaps
..........................................................................
—‌
—‌
98‌
Total
liabilities
..........................................................................
603,515‌
5,230,603‌
14,998,181‌
NET
ASSETS
..........................................................................
$
40,922,507‌
$
46,276,921‌
$
41,156,738‌
Statements
of
Assets
and
Liabilities
(continued)
September
30,
2022
53
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
BlackRock
Sustainable
Total
Return
Fund
NET
ASSETS
CONSIST
OF:
Paid-in
capital
..........................................................................
$
49,918,146‌
$
49,946,020‌
$
49,945,106‌
Accumulated
loss
.......................................................................
(8,995,639‌)
(3,669,099‌)
(8,788,368‌)
NET
ASSETS
..........................................................................
$
40,922,507‌
$
46,276,921‌
$
41,156,738‌
(a)
  Investments,
at
cost
—
unaffiliated
..........................................................
$
46,769,786‌
$
51,355,170‌
$
53,434,669‌
(b)
  Investments,
at
cost
—
affiliated
............................................................
$
1,002,589‌
$
1,345,914‌
$
2,006,214‌
(c)
  Foreign
currency,
at
cost
.................................................................
$
—‌
$
54,615‌
$
349,387‌
(d)
  Premiums
received
....................................................................
$
—‌
$
—‌
$
201,746‌
(e)
  Proceeds
from
TBA
sale
commitments
.......................................................
$
—‌
$
717,148‌
$
5,786,850‌
Statements
of
Assets
and
Liabilities
(continued)
September
30,
2022
2022
BlackRock
Annual
Report
to
Shareholders
54
See
notes
to
financial
statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
BlackRock
Sustainable
Total
Return
Fund
NET
ASSET
VALUE
Institutional
Net
assets
............................................................................
$
83,365‌
$
92,518‌
$
82,293‌
Shares
outstanding
.....................................................................
10,187‌
10,000‌
10,000‌
Net
asset
value
........................................................................
$
8.18‌
$
9.25‌
$
8.23‌
Shares
authorized
......................................................................
Unlimited
Unlimited
500
million
Par
value
............................................................................
$
0.001‌
$
0.001‌
$
0.10‌
Investor
A
Net
assets
............................................................................
$
84,201‌
$
110,133‌
$
92,097‌
Shares
outstanding
.....................................................................
10,289‌
11,904‌
11,192‌
Net
asset
value
........................................................................
$
8.18‌
$
9.25‌
$
8.23‌
Shares
authorized
......................................................................
Unlimited
Unlimited
300
million
Par
value
............................................................................
$
0.001‌
$
0.001‌
$
0.10‌
Class
K
Net
assets
............................................................................
$
40,754,941‌
$
46,074,270‌
$
40,982,348‌
Shares
outstanding
.....................................................................
4,980,000‌
4,980,000‌
4,980,000‌
Net
asset
value
........................................................................
$
8.18‌
$
9.25‌
$
8.23‌
Shares
authorized
......................................................................
Unlimited
Unlimited
500
million
Par
value
............................................................................
$
0.001‌
$
0.001‌
$
0.10‌
Statements
of
Operations

Period
Ended
September
30,
2022
55
Financial
Statements
(a)
Period
from
10/18/21
(commencement
of
operations)
to
09/30/22.
See
notes
to
financial
statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
(a)
BlackRock
Sustainable
Total
Return
Fund
(a)
INVESTMENT
INCOME
–
–
–
Dividends
—
unaffiliated
.................................................................
$
5,929‌
$
—‌
$
—‌
Dividends
—
affiliated
...................................................................
6,113‌
8,239‌
14,187‌
Interest
—
unaffiliated
...................................................................
2,076,831‌
742,264‌
969,054‌
Foreign
taxes
withheld
..................................................................
—‌
(315‌)
(619‌)
Total
investment
income
...................................................................
2,088,873‌
750,188‌
982,622‌
EXPENSES
Investment
advisory
....................................................................
230,618‌
142,771‌
171,630‌
Organization
and
Offering
................................................................
—‌
159,344‌
160,985‌
Offering
............................................................................
129,726‌
—‌
—‌
Professional
.........................................................................
123,853‌
71,602‌
108,190‌
Accounting
services
....................................................................
91,541‌
47,489‌
60,006‌
Printing
and
postage
...................................................................
35,332‌
3
,
67
8‌
7
,
282‌
Administration
.......................................................................
19,603‌
19,574‌
18,703‌
Registration
.........................................................................
17,508‌
6,029‌
14,163‌
Custodian
...........................................................................
9,823‌
16,709‌
15,014‌
Administration
—
class
specific
............................................................
9,224‌
9,209‌
8,800‌
Directors
and
Officer
...................................................................
1,551‌
1,327‌
1,344‌
Transfer
agent
—
class
specific
............................................................
804‌
750‌
750‌
Service
—
class
specific
.................................................................
234‌
353‌
237‌
Miscellaneous
........................................................................
4,984‌
14,000‌
17,228‌
Total
expenses
.........................................................................
674,801‌
492,835‌
584,332‌
Less:
–‌
–‌
–‌
Fees
waived
and/or
reimbursed
by
the
Manager
.................................................
(401,446‌)
(301,757‌)
(384,215‌)
Administration
fees
waived
...............................................................
(18,643‌)
(19,574‌)
(18,703‌)
Administration
fees
waived
by
the
Manager
—
class
specific
.........................................
(9,214‌)
(9,195‌)
(8,790‌)
Transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific
............................
(734‌)
(669‌)
(642‌)
Total
expenses
after
fees
waived
and/or
reimbursed
................................................
244,764‌
161,640‌
171,982‌
Net
investment
income
....................................................................
1,844,109‌
588,548‌
810,640‌
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
(8,585,299‌)
$
(3,664,836‌)
$
(8,804,609‌)
Net
realized
gain
(loss)
from:
Investments
—
unaffiliated
.............................................................
$
(1,727,274‌)
$
(766,858‌)
$
(2,656,814‌)
Forward
foreign
currency
exchange
contracts
.................................................
—‌
684,085‌
707,337‌
Foreign
currency
transactions
...........................................................
—‌
(4,403‌)
26,472‌
Futures
contracts
....................................................................
39,512‌
260,065‌
(488,428‌)
Options
written
.....................................................................
784‌
—‌
(11,205‌)
Payment
by
affiliate
..................................................................
—‌
—‌
3,180‌
Swaps  
..........................................................................
—‌
44,381‌
(31,151‌)
(1,686,978‌)
217,270‌
(2,450,609‌)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
unaffiliated
.............................................................
(6,909,225‌)
(4,039,518‌)
(6,131,449‌)
Forward
foreign
currency
exchange
contracts
.................................................
—‌
82,000‌
96,072‌
Foreign
currency
translations
............................................................
—‌
(1,604‌)
(2,148‌)
Futures
contracts
....................................................................
10,904‌
64,911‌
(161,166‌)
Options
written
.....................................................................
—‌
—‌
(149,267‌)
Swaps  
..........................................................................
—‌
12,105‌
(6,042‌)
(6,898,321‌)
(3,882,106‌)
(6,354,000‌)
Net
realized
and
unrealized
loss
..............................................................
(8,585,299‌)
(3,664,836‌)
(8,804,609‌)
NET
DECREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
...................................
$
(6,741,190‌)
$
(3,076,288‌)
$
(7,993,969‌)
Statements
of
Changes
in
Net
Assets

2022
BlackRock
Annual
Report
to
Shareholders
56
See
notes
to
financial
statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
Year
Ended
09/30/22
Period
from
07/22/21
(a)
to
09/30/21
Period
from
10/18/21
(a)
to
09/30/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
...................................................................
$
1,844,109‌
$
272,573‌
$
588,548‌
Net
realized
gain
(loss)
...................................................................
(1,686,978‌)
(30,972‌)
217,270‌
Net
change
in
unrealized
appreciation
(depreciation)
...............................................
(6,898,321‌)
(221,782‌)
(3,882,106‌)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
(6,741,190‌)
19,819‌
(3,076,288‌)
DISTRIBUTIONS
TO
SHAREHOLDERS
(b)
  Institutional
..........................................................................
(4,082‌)
(615‌)
(1,298‌)
  Investor
A
...........................................................................
(3,877‌)
(571‌)
(1,738‌)
  Class
K
.............................................................................
(2,040,030‌)
(311,210‌)
(664,697‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
........................................
(2,047,989‌)
(312,396‌)
(667,733‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
........................................
4,263‌
50,000,000‌
50,020,942‌
NET
ASSETS
Total
increase
(decrease)
in
net
assets
..........................................................
(8,784,916‌)
49,707,423‌
46,276,921‌
Beginning
of
period
.......................................................................
49,707,423‌
—‌
—
End
of
period
...........................................................................
$
40,922,507‌
$
49,707,423‌
$
46,276,921‌
(a)
Commencement
of
operations.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Statements
of
Changes
in
Net
Assets
(continued)
57
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Sustainable
Total
Return
Fund
Period
from
10/18/21
(a)
to
09/30/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
.................................................................................................
$
810,640‌
Net
realized
loss
.....................................................................................................
(2,450,609‌)
Net
change
in
unrealized
appreciation
(depreciation)
.............................................................................
(6,354,000‌)
Net
decrease
in
net
assets
resulting
from
operations
...............................................................................
(7,993,969‌)
DISTRIBUTIONS
TO
SHAREHOLDERS
(b)
  Institutional
........................................................................................................
(1,685‌)
  Investor
A
.........................................................................................................
(1,566‌)
  Class
K
...........................................................................................................
(857,656‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
......................................................................
(860,907‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
......................................................................
50,011,614‌
NET
ASSETS
Total
increase
in
net
assets
................................................................................................
41,156,738‌
Beginning
of
period
.....................................................................................................
—
End
of
period
.........................................................................................................
$
41,156,738‌
(a)
Commencement
of
operations.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
2022
BlackRock
Annual
Report
to
Shareholders
58
BlackRock
Sustainable
High
Yield
Bond
Fund
Institutional
Year
Ended
09/30/22
Period
from
07/22/21
(a)
to
09/30/21
Net
asset
value,
beginning
of
period
...................................................................
$
9.94
‌
$
10.00
‌
Net
investment
income
(b)
...........................................................................
0.37
‌
0.05
‌
Net
realized
and
unrealized
loss
......................................................................
(1.72
)
(0.05
)
Net
increase
(decrease)
from
investment
operations
..........................................................
(1.35
)
0.00
‌
Distributions
from
net
investment
income
(c)
..............................................................
(0.41
)
(0.06
)
Net
asset
value,
end
of
period
........................................................................
$
8.18
‌
$
9.94
‌
Total
Return
(d)
—
—
Based
on
net
asset
value
............................................................................
(13.97
)%
0.01
%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
...................................................................................
1.75
%
1.32
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..........................................................
0.57
%
0.58
%
(g)
Net
investment
income
.............................................................................
3.96
%
2.80
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
........................................................................
$
83
‌
$
99
‌
Portfolio
turnover
rate
...............................................................................
47
%
10
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
(h)
Audit,
offering
and
organization
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
2.40%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
59
Financial
Highlights
BlackRock
Sustainable
High
Yield
Bond
Fund
Investor
A
Year
Ended
09/30/22
Period
from
07/22/21
(a)
to
09/30/21
Net
asset
value,
beginning
of
period
...................................................................
$
9.94
‌
$
10.00
‌
Net
investment
income
(b)
...........................................................................
0.34
‌
0.05
‌
Net
realized
and
unrealized
loss
......................................................................
(1.72
)
(0.05
)
Net
increase
(decrease)
from
investment
operations
..........................................................
(1.38
)
0.00
‌
Distributions
from
net
investment
income
(c)
..............................................................
(0.38
)
(0.06
)
Net
asset
value,
end
of
period
........................................................................
$
8.18
‌
$
9.94
‌
Total
Return
(d)
—
—
Based
on
net
asset
value
............................................................................
(14.18
)%
(0.03
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
...................................................................................
2.00
%
1.58
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..........................................................
0.82
%
0.83
%
(g)
Net
investment
income
.............................................................................
3.71
%
2.55
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
........................................................................
$
84
‌
$
99
‌
Portfolio
turnover
rate
...............................................................................
47
%
10
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
(h)
Audit,
offering
and
organization
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
2.65%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2022
BlackRock
Annual
Report
to
Shareholders
60
BlackRock
Sustainable
High
Yield
Bond
Fund
Class
K
Year
Ended
09/30/22
Period
from
07/22/21
(a)
to
09/30/21
Net
asset
value,
beginning
of
period
...................................................................
$
9.94
‌
$
10.00
‌
Net
investment
income
(b)
...........................................................................
0.37
‌
0.05
‌
Net
realized
and
unrealized
loss
......................................................................
(1.72
)
(0.05
)
Net
increase
(decrease)
from
investment
operations
..........................................................
(1.35
)
0.00
‌
Distributions
from
net
investment
income
(c)
..............................................................
(0.41
)
(0.06
)
Net
asset
value,
end
of
period
........................................................................
$
8.18
‌
$
9.94
‌
Total
Return
(d)
—
—
Based
on
net
asset
value
............................................................................
(13.93
)%
0.02
%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
...................................................................................
1.46
%
0.96
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..........................................................
0.53
%
0.53
%
(g)
Net
investment
income
.............................................................................
4.00
%
2.85
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
........................................................................
$
40,755
‌
$
49,509
‌
Portfolio
turnover
rate
...............................................................................
47
%
10
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
(h)
Audit,
offering
and
organization
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
2.04%.
See
notes
to
financial
statements.
Financial
Highlights
(For
a
share
outstanding
throughout
the
period)
61
Financial
Highlights
BlackRock
Sustainable
Low
Duration
Bond
Fund
Institutional
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
....................................................................................
$
10.00
‌
Net
investment
income
(b)
............................................................................................
0.11
‌
Net
realized
and
unrealized
loss
.......................................................................................
(0.73
)
Net
decrease
from
investment
operations
..................................................................................
(0.62
)
Distributions
from
net
investment
income
(c)
...............................................................................
(0.13
)
Net
asset
value,
end
of
period
.........................................................................................
$
9.25
‌
Total
Return
(d)
—
Based
on
net
asset
value
.............................................................................................
(6.24
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
....................................................................................................
1.31
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
...........................................................................
0.37
%
(g)(h)
Net
investment
income
..............................................................................................
1.24
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
.........................................................................................
$
93
‌
Portfolio
turnover
rate
(i)
...............................................................................................
178
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
(h)
Audit,
offering,
organization
and
printing
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
and
total
expenses
after
fees
waived
and/or
reimbursed
would
have
been
1.34%
and
0.39%,
respectively.
(i)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Excluding
MDRs,
the
portfolio
turnover
rate
would
have
been
167%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
the
period)
2022
BlackRock
Annual
Report
to
Shareholders
62
BlackRock
Sustainable
Low
Duration
Bond
Fund
Investor
A
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
....................................................................................
$
10.00
‌
Net
investment
income
(b)
............................................................................................
0.10
‌
Net
realized
and
unrealized
loss
.......................................................................................
(0.74
)
Net
decrease
from
investment
operations
..................................................................................
(0.64
)
Distributions
from
net
investment
income
(c)
...............................................................................
(0.11
)
Net
asset
value,
end
of
period
.........................................................................................
$
9.25
‌
Total
Return
(d)
—
Based
on
net
asset
value
.............................................................................................
(6.46
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
....................................................................................................
1.48
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
...........................................................................
0.62
%
(g)(h)
Net
investment
income
..............................................................................................
1.08
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
.........................................................................................
$
110
‌
Portfolio
turnover
rate
(i)
...............................................................................................
178
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
(h)
Audit,
offering,
organization
and
printing
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
and
total
expenses
after
fees
waived
and/or
reimbursed
would
have
been
1.50%
and
0.64%,
respectively.
(i)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Excluding
MDRs,
the
portfolio
turnover
rate
would
have
been
167%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
the
period)
63
Financial
Highlights
BlackRock
Sustainable
Low
Duration
Bond
Fund
Class
K
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
....................................................................................
$
10.00
‌
Net
investment
income
(b)
............................................................................................
0.12
‌
Net
realized
and
unrealized
loss
.......................................................................................
(0.74
)
Net
decrease
from
investment
operations
..................................................................................
(0.62
)
Distributions
from
net
investment
income
(c)
...............................................................................
(0.13
)
Net
asset
value,
end
of
period
.........................................................................................
$
9.25
‌
Total
Return
(d)
—
Based
on
net
asset
value
.............................................................................................
(6.20
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
....................................................................................................
1.04
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
...........................................................................
0.33
%
(g)
(h)
Net
investment
income
..............................................................................................
1.28
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
.........................................................................................
$
46,074
‌
Portfolio
turnover
rate
(i)
...............................................................................................
178
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
(h)
Audit,
offering,
organization
and
printing
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
and
total
expenses
after
fees
waived
and/or
reimbursed
would
have
been
1.07%
and
0.35%,
respectively.
(i)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Excluding
MDRs,
the
portfolio
turnover
rate
would
have
been
167%.
See
notes
to
financial
statements.
Financial
Highlights
(For
a
share
outstanding
throughout
the
period)
2022
BlackRock
Annual
Report
to
Shareholders
64
BlackRock
Sustainable
Total
Return
Fund
Institutional
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
....................................................................................
$
10.00
‌
Net
investment
income
(b)
............................................................................................
0.16
‌
Net
realized
and
unrealized
loss
.......................................................................................
(1.76
)
Net
decrease
from
investment
operations
..................................................................................
(1.60
)
Distributions
from
net
investment
income
(c)
...............................................................................
(0.17
)
Net
asset
value,
end
of
period
.........................................................................................
$
8.23
‌
Total
Return
(d)
—
Based
on
net
asset
value
.............................................................................................
(16.16
)%
(e)(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
....................................................................................................
1.58
%
(h)(i)
Total
expenses
after
fees
waived
and/or
reimbursed
...........................................................................
0.40
%
(h)(i)
Net
investment
income
..............................................................................................
1.80
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
.........................................................................................
$
82
‌
Portfolio
turnover
rate
(j)
...............................................................................................
604
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Includes
payment
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(g)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(h)
Annualized.
(i)
Audit,
offering,
organization
and
printing
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
and
total
expenses
after
fees
waived
and/or
reimbursed
would
have
been
1.61%
and
0.43%,
respectively.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Excluding
MDRs,
the
portfolio
turnover
rate
would
have
been
360%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
the
period)
65
Financial
Highlights
BlackRock
Sustainable
Total
Return
Fund
Investor
A
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
....................................................................................
$
10.00
‌
Net
investment
income
(b)
............................................................................................
0.13
‌
Net
realized
and
unrealized
loss
.......................................................................................
(1.76
)
Net
decrease
from
investment
operations
..................................................................................
(1.63
)
Distributions
from
net
investment
income
(c)
...............................................................................
(0.14
)
Net
asset
value,
end
of
period
.........................................................................................
$
8.23
‌
Total
Return
(d)
—
Based
on
net
asset
value
.............................................................................................
(16.38
)%
(e)(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
....................................................................................................
1.81
%
(h)(i)
Total
expenses
after
fees
waived
and/or
reimbursed
...........................................................................
0.70
%
(h)(i)
Net
investment
income
..............................................................................................
1.53
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
.........................................................................................
$
92
‌
Portfolio
turnover
rate
(j)
...............................................................................................
604
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Includes
payment
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(g)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(h)
Annualized.
(i)
Audit,
offering,
organization
and
printing
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
and
total
expenses
after
fees
waived
and/or
reimbursed
would
have
been
1.84%
and
0.73%,
respectively.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Excluding
MDRs,
the
portfolio
turnover
rate
would
have
been
360%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
the
period)
2022
BlackRock
Annual
Report
to
Shareholders
66
BlackRock
Sustainable
Total
Return
Fund
Class
K
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
....................................................................................
$
10.00
‌
Net
investment
income
(b)
............................................................................................
0.16
‌
Net
realized
and
unrealized
loss
.......................................................................................
(1.76
)
Net
decrease
from
investment
operations
..................................................................................
(1.60
)
Distributions
from
net
investment
income
(c)
...............................................................................
(0.17
)
Net
asset
value,
end
of
period
.........................................................................................
$
8.23
‌
Total
Return
(d)
—
Based
on
net
asset
value
.............................................................................................
(16.12
)%
(e)(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
....................................................................................................
1.30
%
(h)(i)
Total
expenses
after
fees
waived
and/or
reimbursed
...........................................................................
0.36
%
(h)(i)
Net
investment
income
..............................................................................................
1.84
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
.........................................................................................
$
40,982
‌
Portfolio
turnover
rate
(j)
...............................................................................................
604
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Includes
payment
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(g)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(h)
Annualized.
(i)
Audit,
offering,
organization
and
printing
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
and
total
expenses
after
fees
waived
and/or
reimbursed
would
have
been
1.33%
and
0.39%,
respectively.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Excluding
MDRs,
the
portfolio
turnover
rate
would
have
been
360%.
See
notes
to
financial
statements.
Notes
to
Financial
Statements
67
Notes
to
Financial
Statements
1.
ORGANIZATION 
BlackRock
Funds
V
(the
“Trust”) and
BlackRock
Bond
Fund,
Inc.
(the
“Corporation”)
are
each
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
open-end
management
investment
companies.
The
Trust
is
organized
as
a
Massachusetts
business
trust.
The
Corporation
is
organized
as
a
Maryland
corporation.
The
following
are
referred
to
herein
collectively
as
the
“Funds”
or
individually
as
a
“Fund”:
Each Fund
offers
multiple
classes
of
shares.
All
classes
of
shares
have
identical
voting,
dividend,
liquidation
and
other
rights
and
are
subject
to
the
same
terms
and
conditions,
except
that
certain
classes
bear
expenses
related
to
the
shareholder
servicing
and
distribution
of
such
shares. Institutional
and
Class
K
Shares
are
sold
without
a
sales
charge
and
only
to
certain
eligible
investors.
Investor
A
Shares
bear
certain
expenses
related
to
shareholder
servicing
of
such
shares.
Investor
A
Shares
are
generally available
through
financial
intermediaries.
Each
class
has
exclusive
voting
rights
with
respect
to
matters
relating
to
its
shareholder
servicing
and
distribution
expenditures.
(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.
The
Board
of
Trustees
of
BlackRock
Funds
V
and
Board
of
Directors
of
BlackRock
Bond
Fund,
Inc.
are
collectively
referred
to
throughout
this
report
as
the
“Board”,
and
the
directors/trustees
thereof
are
collectively
referred
to
throughout
this
report
as
“Directors”.
The
Funds,
together
with
certain
other
registered
investment
companies
advised
by
BlackRock
Advisors,
LLC
(the
“Manager”) or
its
affiliates,
are
included
in
a
complex
of
open-end
non-index
fixed-income
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
(the
“trade
dates”).
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Dividend
income
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
dates.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
dates
at
fair
value.
Dividends
from
foreign
securities
where
the
ex-dividend
dates
may
have
passed
are
subsequently
recorded
when
the
Funds
are
informed
of
the
ex-dividend
dates.
Under
the
applicable
foreign
tax
laws,
a
withholding
tax
at
various
rates
may
be
imposed
on
capital
gains,
dividends
and
interest.
Upon
notification
from
issuers,
a
portion
of
the
dividend
income
received
from
a
real
estate
investment
trust
may
be
redesignated
as
a
reduction
of
cost
of
the
related
investment
and/or
realized
gain.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities,
are
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets. For
convertible
securities,
premiums
attributable
to
the
debt
instrument
are
amortized,
but
premiums
attributable
to
the
conversion
feature
are
not
amortized.
Foreign
Currency
Translation:
Each
Fund’s
books
and
records
are
maintained
in
U.S.
dollars.
Securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
using
exchange
rates
determined
as
of
the
close
of
trading
on
the
New
York
Stock
Exchange
(“NYSE”).
Purchases
and
sales
of
investments
are
recorded
at
the
rates
of
exchange
prevailing
on
the
respective
dates
of
such
transactions.
Generally,
when
the
U.S.
dollar
rises
in
value
against
a
foreign
currency,
the
investments
denominated
in
that
currency
will
lose
value;
the
opposite
effect
occurs
if
the
U.S.
dollar
falls
in
relative
value. 
Each
Fund
does
not
isolate
the
effect
of
fluctuations
in
foreign
exchange
rates
from
the
effect
of
fluctuations
in
the
market
prices
of
investments
for
financial
reporting
purposes.
Accordingly,
the
effects
of
changes
in
exchange
rates
on
investments
are
not
segregated
in
the
Statements
of
Operations
from
the
effects
of
changes
in
market
prices
of
those
investments,
but
are
included
as
a
component
of
net
realized
and
unrealized
gain
(loss)
from
investments.
Each
Fund
reports
realized
currency
gains
(losses)
on
foreign
currency
related
transactions
as
components
of
net
realized
gain
(loss)
for
financial
reporting
purposes,
whereas
such
components
are
generally
treated
as
ordinary
income
for
U.S.
federal
income
tax
purposes.
Foreign
Taxes:
The
Funds
may
be
subject
to
foreign
taxes
(a
portion
of
which
may
be
reclaimable)
on
income,
stock
dividends,
capital
gains
on
investments,
or
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
foreign
tax
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
each
Fund
invests.
These
foreign
taxes,
if
any,
are
paid
by
each
Fund
and
are
reflected
in
its
Statements
of
Operations
as
follows:
foreign
taxes
withheld
at
source
are
presented
as
a
reduction
of
income,
foreign
taxes
on
securities
lending
income
are
presented
as
a
reduction
of
securities
lending
income,
foreign
taxes
on
stock
dividends
are
presented
as
“Foreign
taxes
withheld”,
and
foreign
taxes
on
capital
gains
from
sales
of
investments
and
foreign
taxes
on
foreign
currency
transactions
are
included
in
their
respective
net
realized
gain
(loss)
categories.
Foreign
taxes
payable
or
deferred
as
of
September
30,
2022
,
if
any,
are
disclosed
in
the Statements
of
Assets
and
Liabilities.
Registrant
Name
Fund
Name
Herein
Referred
To
As
Diversification
Classification
BlackRock
Funds
V
.....................
BlackRock
Sustainable
High
Yield
Bond
Fund
Sustainable
High
Yield
Bond
Diversified
BlackRock
Funds
V
.....................
BlackRock
Sustainable
Low
Duration
Bond
Fund
Sustainable
Low
Duration
Bond
Diversified
BlackRock
Bond
Fund,
Inc.
................
BlackRock
Sustainable
Total
Return
Fund
Sustainable
Total
Return
Diversified
Share
Class
Initial
Sales
Charge
Contingent
Deferred
Sales
Charge
(“CDSC”)
Conversion
Privilege
Institutional
and
Class
K
Shares
.....................................
No
No
None
Investor
A
Shares
..............................................
Yes
No
(a)
None
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
68
The
Funds
file
withholding
tax
reclaims
in
certain
jurisdictions
to
recover
a
portion
of
amounts
previously
withheld.
The
Funds
may
record
a
reclaim
receivable
based
on
collectability,
which
includes
factors
such
as
the
jurisdiction’s
applicable
laws,
payment
history
and
market
convention.
The
Statements
of
Operations
include
tax
reclaims
recorded
as
well
as
professional
and
other
fees,
if
any,
associated
with
recovery
of
foreign
withholding
taxes. 
Collateralization:
If
required
by
an
exchange
or
counterparty
agreement,
the
Funds
may
be
required
to
deliver/deposit
cash
and/or
securities
to/with
an
exchange,
or
broker-
dealer
or
custodian
as
collateral
for
certain
investments.  
Distributions:
Distributions
from
net
investment
income
are
declared
daily
and
paid
monthly. Distributions
of
capital
gains
are
recorded
on
the
ex-dividend
dates
and
made
at
least
annually.
The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP
.  
Deferred
Compensation
Plan:
Under
the
Deferred
Compensation
Plan
(the
“Plan”)
approved
by
the
Board,
the
directors
who
are
not
“interested
persons”
of
the
Funds,
as
defined
in
the
1940
Act
(“Independent
Directors
”),
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
Directors
.
This
has
the
same
economic
effect
for
the
Independent 
Directors
as
if
the
Independent 
Directors
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,
if
any, are
included
in
the
Directors’
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. Net
appreciation
(depreciation)
in
the
value
of
participants’
deferral
accounts
is
allocated
among
the
participating
funds
in
the
BlackRock
Fixed-Income
Complex
and
reflected
as Directors
and
Officer
expense
on
the
Statements
of
Operations.
The Directors
and
Officer
expense
may
be
negative
as
a
result
of
a
decrease
in
value
of
the
deferred
accounts.
Organization
and
Offering
Costs:
Upon
commencement
of
operations,
organization
costs
associated
with
the
establishment
of
the
Funds
were
expensed
by
the
Funds
and
reimbursed
by the
Manager. The
Manager
reimbursed
the
Funds
the following
amounts,
which are
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations.
Offering
costs
are
amortized
over
a
12-month
period
beginning
with
the
commencement
of
operations
of
a
class
of
shares.  
Indemnifications:
In
the
normal
course
of
business,
a
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
A
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
a
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to
a
Fund
or
its
classes
are
charged
to
that
Fund
or
the
applicable
class.
Expenses
directly
related
to
the
Funds
and
other
shared
expenses
prorated
to
the
Funds
are
allocated
daily
to
each
class
based
on
their
relative
net
assets
or
other
appropriate
methods.
Other
operating
expenses
shared
by
several
funds,
including
other
funds
managed
by
the
Manager,
are
prorated
among
those
funds
on
the
basis
of
relative
net
assets
or
other
appropriate
methods. 
3.
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS 
Investment
Valuation
Policies:
 Each
Fund’s
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
each
day
that
the
Fund
is
open
for
business
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Board
of
each
Fund
has
approved
the
designation
of
each
Fund’s
Manager
as
the
valuation
designee
for
each
Fund.
Each
Fund
determines
the
fair
values
of
its
financial
instruments
using
various
independent
dealers
or
pricing
services
under
the
Manager’s
policies.
If
a
security’s
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
the
Manager’s
policies
and
procedures
as
reflecting
fair
value.
The
Manager
has
formed
a
committee
(the
“Valuation
Committee”)
to
develop
pricing
policies
and
procedures
and
to
oversee
the
pricing
function
for
all
financial
instruments,
with
assistance
from
other
BlackRock
pricing
committees.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
each
Fund’s
assets
and
liabilities: 
Equity
investments
traded
on
a
recognized
securities
exchange
are
valued
at
that
day’s official
closing
price,
as
applicable,
on
the
exchange
where
the
stock
is
primarily
traded.
Equity
investments
traded
on
a
recognized
exchange
for
which
there
were
no
sales
on
that
day
may
be
valued
at
the
last
available
bid
(long
positions)
or
ask
(short
positions)
price.  
Fixed-income investments
for
which
market
quotations
are
readily
available
are
generally
valued
using
the
last
available
bid
price
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),
market
data, credit
quality
information,
perceived
market
movements,
news,
and
other
relevant
information.
Certain
fixed-income
securities,
including
asset-
backed
and
mortgage
related
securities
may
be
valued
based
on
valuation
models
that
consider
the
estimated
cash
flows
of
each
tranche
of
the
entity,
establish
a
benchmark
yield
and
develop
an
estimated
tranche
specific
spread
to
the
benchmark
yield
based
on
the
unique
attributes
of
the
tranche.
The
amortized
cost
method
of
valuation
may
be
used
with
respect
to
debt
obligations
with
sixty
days
or
less
remaining
to
maturity
unless
the
Manager
determines
such
method
does
not
represent
fair
value.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds) are
valued
at
that
day’s
published net
asset
value
(“NAV”).
Futures
contracts
are valued
based
on
that
day’s
last
reported
settlement
or
trade price
on
the
exchange
where
the
contract
is
traded.
Fund
Name
Amounts
Reimbursed
Sustainable
Low
Duration
Bond
.........................................................................................
$
20,000‌
Sustainable
Total
Return
..............................................................................................
20,000‌
Notes
to
Financial
Statements
(continued)
69
Notes
to
Financial
Statements
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.
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.
Over-the-counter
(“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
independent pricing
services
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. 
Generally,
trading
in
foreign
instruments
is
substantially
completed
each
day
at
various
times
prior
to
the
close
of
trading
on
the
NYSE.
Each
business
day,
the
Funds
use
current
market
factors
supplied
by
independent
pricing
services
to
value
certain
foreign
instruments
(“Systematic
Fair
Value
Price”).
The
Systematic
Fair
Value
Price
is
designed
to
value
such
foreign
securities
at
fair
value
as
of
the
close
of
trading
on
the
NYSE,
which
follows
the
close
of
the
local
markets.
If
events
(e.g.,
market
volatility,
company
announcement or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the
Valuation
Committee
in
accordance
with
the
Manager’s
policies
and
procedures
as
reflecting
fair
value
(“Fair
Valued
Investments”).
The
fair
valuation
approaches
that
may
be
used
by
the
Valuation
Committee include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the
Valuation
Committee
seeks
to
determine
the
price
that
each
Fund
might
reasonably
expect
to
receive
or
pay
from
the
current
sale
or
purchase
of
that
asset
or
liability
in
an
arm’s-length
transaction.
Fair
value
determinations
shall
be
based
upon
all
available
factors
that
the
Valuation
Committee,
deems
relevant
and
consistent
with
the
principles
of
fair
value
measurement.
For
investments
in
equity
or
debt
issued
by
privately
held
companies
or
funds
(“Private
Company”
or
collectively,
the
“Private
Companies”)
and
other
Fair
Valued
Investments,
the
fair
valuation
approaches
that
are
used
by
the
Valuation
Committee
and
third-party
pricing
services
utilized
by
the
Valuation
Committee
include one
or
a
combination
of,
but
not
limited
to,
the
following
inputs.  
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.
Enterprise
valuation
techniques
such
as
an
option
pricing
model
(“OPM”),
a
probability
weighted
expected
return
model
(“PWERM”),
current
value
method or
a
hybrid
of
those
techniques
are
used
as
deemed
appropriate
under
the
circumstances.
The
use
of these
valuation techniques
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
applicable
to 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
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows: 
Level
1
—
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
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);
and 
Level
3 —
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available
(including
the
Valuation
Committee’s
assumptions
used
in
determining
the
fair
value
of
financial
instruments).
Standard
Inputs
Generally
Considered
By
The
Valuation
Committee
And  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.
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
70
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety. Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the
Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
Private
Companies
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
4.
SECURITIES
AND
OTHER
INVESTMENTS 
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. 
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. 
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
Notes
to
Financial
Statements
(continued)
71
Notes
to
Financial
Statements
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. 
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.
TBA
Commitments:
TBA
commitments
are
forward
agreements
for
the
purchase
or
sale
of
securities,
including
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,
if
there
are
expenses
or
delays
in
connection
with
the
TBA
transactions,
or
if
the
counterparty
fails
to
complete
the
transaction.
In
order
to
better
define
contractual
rights
and
to
secure
rights
that
will
help
a
fund
mitigate its
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
:
The
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
a
fund realizes
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. 
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
exchange-traded agreements
between
the
Funds
and
a
counterparty
to
buy
or
sell
a
specific
quantity
of
an
underlying
instrument
at
a
specified
price
and
on
a
specified
date.
Depending
on
the
terms
of
a
contract,
it
is
settled
either
through
physical
delivery
of
the
underlying
instrument
on
the
settlement
date
or
by
payment
of
a
cash
amount
on
the
settlement
date.
Upon
entering
into
a
futures
contract,
the
Funds
are
required
to
deposit
initial
margin
with
the
broker
in
the
form
of
cash
or
securities
in
an
amount
that
varies
depending
on
a
contract’s
size
and
risk
profile.
The
initial
margin
deposit
must
then
be
maintained
at
an
established
level
over
the
life
of
the
contract.
Amounts
pledged,
which
are
considered
restricted,
are
included
in
cash
pledged
for
futures
contracts
in
the
Statements
of
Assets
and
Liabilities.
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
72
Securities
deposited
as
initial
margin
are
designated
in
the
Schedules
of
Investments
and
cash
deposited,
if
any, are
shown
as
cash
pledged
for
futures
contracts
in
the
Statements
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Funds
agree
to
receive
from
or
pay
to
the
broker
an
amount
of
cash
equal
to
the
daily
fluctuation
in
market
value
of
the
contract
(“variation
margin”).
Variation
margin
is
recorded
as
unrealized
appreciation
(depreciation)
and,
if
any,
shown
as
variation
margin
receivable
(or
payable)
on
futures
contracts
in
the
Statements
of
Assets
and
Liabilities.
When
the
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statements
of
Operations
equal
to
the
difference
between
the
notional
amount
of
the
contract
at
the
time
it
was
opened
and
the
notional
amount
at
the
time
it
was
closed.
The
use
of
futures
contracts
involves
the
risk
of
an
imperfect
correlation
in
the
movements
in
the
price
of
futures
contracts
and
interest
rates,
foreign
currency
exchange
rates
or
underlying
assets.
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
contracts
are
traded
OTC
and
not
on
an
organized
exchange.
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.
A
Fund’s
risk
of
loss
from
counterparty
credit
risk
on
OTC
derivatives
is
generally
limited
to
the
aggregate
unrealized
gain
netted
against
any
collateral
held
by
the
Fund.
Options:
The
Funds
may 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
subject
to
being
called
by
the
option
counterparty.
When
the
Funds
write
a
put
option,
cash
is
segregated
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
–
The
Funds
may 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
– The
Funds
may 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
CCP
becomes
the Funds’
counterparty
on
the
swap. Each
Fund is
required
to
interface
with
the
CCP
through
the
broker.
Upon
entering
into
a
centrally
cleared
swap, each
Fund is
required
to
deposit
initial
margin
with
the
broker
in
the
form
of
cash
or
securities
in
an
amount
that
varies
depending
on
the
size
and
risk
profile
of
the
particular
swap.
Securities
deposited
as
initial
margin
are
designated
in
the
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, each
Fund
agrees
to
receive
from
or
pay
to
the
broker
variation
margin.
Variation
margin
is
recorded
as
unrealized
appreciation
Notes
to
Financial
Statements
(continued)
73
Notes
to
Financial
Statements
(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
are
amortized
over
the
term
of
the
contract
and recorded
as
realized
gains
(losses)
in
the
Statements
of
Operations,
including
those
at
termination.
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.
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
risks
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
its
contractual
rights
and
to
secure
rights
that
will
help
it mitigate its
counterparty
risk, a
Fund
may
enter
into
an
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreement
(“ISDA
Master
Agreement”)
or
similar
agreement
with
its
counterparties.
An
ISDA
Master
Agreement
is
a
bilateral
agreement
between a
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, a
Fund
may,
under
certain
circumstances,
offset
with
the
counterparty
certain
derivative
financial
instruments’
payables
and/or
receivables
with
collateral
held
and/or
posted
and
create
one
single
net
payment.
The
provisions
of
the
ISDA
Master
Agreement
typically
permit
a
single
net
payment
in
the
event
of
default
including
the
bankruptcy
or
insolvency
of
the
counterparty.
However,
bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
the
right
of
offset
in
bankruptcy,
insolvency
or
other
events.
Collateral
Requirements:
For
derivatives
traded
under
an
ISDA
Master
Agreement,
the
collateral
requirements
are
typically
calculated
by
netting
the
mark-to-market
amount
for
each
transaction
under
such
agreement
and
comparing
that
amount
to
the
value
of
any
collateral
currently
pledged
by
the
Funds
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 the
counterparties
are
not
fully
collateralized, each
Fund bears
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, each
Fund bears
the
risk
of
loss
from
a
counterparty
in
the
amount
of
the
value
of
the
collateral
in
the
event
the
counterparty
fails
to
return
such
collateral.
Based
on
the
terms
of
agreements,
collateral
may
not
be
required
for
all
derivative
contracts.
For
financial
reporting
purposes,
the
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
Corporation
and
the
Trust,
on
behalf
of
the
applicable
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
and
administrative
services.
The
Manager
is
responsible
for
the
management
of each
Fund’s
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of each
Fund.
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
74
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:
With
respect
to
each
Fund,
the
Manager
entered
into
separate
sub-advisory
agreements
with
each
of
BlackRock
International
Limited
(“BIL”),
and
with
respect
to
Sustainable
Low
Duration
Bond
and
Sustainable
Total
Return,
BlackRock
(Singapore)
Limited
(“BSL”)
(collectively,
the
“Sub-Advisers”),
each
an
affiliate
of
the
Manager.
The
Manager
pays
BIL
and
BSL
for
services
they
provide
for
that
portion
of
each
Fund
for
which
BIL
and
BSL,
as
applicable,
acts
as
sub-adviser,
a
monthly
fee
that
is
equal
to
a
percentage
of
the
investment
advisory
fees
paid
by
each
Fund
to
the
Manager.
Service
Fees:
The
Corporation
and
the Trust,
on behalf
of
the
applicable 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 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:
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
servicing to
the
Funds.
The
ongoing
service
fee compensates
BRIL
and
each
broker-
dealer
for
providing
shareholder
servicing related
services
to
shareholders.
For
the period
ended
September
30,
2022,
the
following
table
shows
the
class
specific
service
borne
directly
by
each
share
class
of
each
Fund:
Administration:
The
Corporation
and
the
Trust,
on
behalf
of
the
applicable
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.
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
period
ended
September
30,
2022, the
following
table
shows
the
class
specific
administration
fees
borne
directly
by
each
share
class
of
each
Fund:
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 
period
 ended September
30,
2022,
the
Funds 
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
The
Manager
maintains
a
call
center
that
is
responsible
for
providing
certain
shareholder
services
to
the
Funds.
Shareholder
services
include
responding
to
inquiries
and
processing
purchases
and
sales
based
upon
instructions
from
shareholders.
For
the period
ended
September
30,
2022,
the
Funds
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
Investment
Advisory
Fees
Average
Daily
Net
Assets
Sustainable
High
Yield
Bond
Sustainable
Low
Duration
Bond
Sustainable
Total
Return
First
$1
billion
...............................................................................
0.500‌%
0.310‌%
0.390‌%
$1
billion
-
$3
billion
...........................................................................
0.470‌
0.290‌
0.370‌
$3
billion
-
$5
billion
...........................................................................
0.450‌
0.280‌
0.350‌
$5
b
illion
-
$10
b
illion
..........................................................................
0.440‌
0.270‌
0.340‌
Greater
than
$10
billion
.........................................................................
0.430‌
0.260‌
0.330‌
Share
Class
Service
Fees
Investor
A
..............................................................................................................
0.25‌%
Fund
Name
Investor
A
Sustainable
High
Yield
Bond
..................................................................................................
$
234
Sustainable
Low
Duration
Bond
................................................................................................
353
Sustainable
Total
Return
.....................................................................................................
237
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
Fund
Name
Institutional
Investor
A
Class
K
Total
Sustainable
High
Yield
Bond
...................................................................
$
18‌
$
18‌
$
9,188‌
$
9,224‌
Sustainable
Low
Duration
Bond
.................................................................
17‌
28‌
9,164‌
9,209‌
Sustainable
Total
Return
......................................................................
17‌
18‌
8,765‌
8,800‌
Notes
to
Financial
Statements
(continued)
75
Notes
to
Financial
Statements
For
the
period ended
September
30,
2022,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
each
Fund:
Other
Fees:
For
the
period
 ended 
September
30,
2022
,
affiliates
earned
underwriting
discounts,
direct
commissions
and
dealer
concessions
on
sales
of
the 
Sustainable
Low
Duration
Bond
's
Investor
A
Shares for
a
total
of
$11
.
Expense
Limitations,
Waivers,
Reimbursements
and
Recoupments:
The
Manager
contractually
agreed
to
waive
its
investment
advisory
fees
by
the
amount
of
investment
advisory
fees each
Fund
pays
to
the
Manager
indirectly
through
its
investment
in
affiliated
money
market
funds
(the
“affiliated
money
market
fund
waiver”)
through
June
30,
2023.
The
contractual
agreement
may
be
terminated upon
90
days’
notice
by
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of a
Fund.
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
period
ended
September
30,
2022,
the
amounts
waived
were
as
follows: 
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of each
Fund’s
assets
invested
in
affiliated
equity
and
fixed-
income mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
June
30,
2023.
The
contractual
agreement
may
be
terminated
upon
90
days’
notice
by
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
a
Fund.
These
amounts
are
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations. For
the
period
ended
September
30,
2022,
there
were
no
fees
waived
by
the
Manager
pursuant
to
this
arrangement.
With
respect
to
each
Fund,
the
Manager
contractually
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
expenses,
excluding
interest
expense,
dividend
expense,
tax
expense,
acquired
fund
fees
and
expenses,
and
certain
other
fund
expenses,
which
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of each
Fund’s
business
(“expense
limitation”).
The
expense
limitations
as
a
percentage
of
average
daily
net
assets
are
as
follows:
The
Manager
has
agreed
not
to
reduce
or
discontinue
the
contractual
expense
limitations
through
June
30,
2023,
unless
approved
by
the
Board,
including
a
majority
of
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
a
Fund.
For
the
period
ended
September
30,
2022,
the
amounts
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations
were
as
follows:
The
Funds
also
had
a
waiver
of
administration
fees,
which
are
included
in
Administration
fees
waived
by
the
Manager
in
the
Statements
of
Operations.
For
the
period
ended
September
30,
2022,
the
amounts
waived
were
as
follows:
Fund
Name
Institutional
Investor
A
Class
K
Total
Sustainable
High
Yield
Bond
...................................................................
$
268‌
$
268‌
$
268‌
$
804‌
Sustainable
Low
Duration
Bond
.................................................................
250‌
250‌
250‌
750‌
Sustainable
Total
Return
......................................................................
250‌
250‌
250‌
750‌
Fund
Name
Amounts
Waived
Sustainable
High
Yield
Bond
.............................................................................................
$
424
Sustainable
Low
Duration
Bond
...........................................................................................
777
Sustainable
Total
Return
................................................................................................
1,670
Fund
Name
Institutional
Investor
A
Class
K
Sustainable
High
Yield
Bond
..........................................................................
0.58‌%
0.83‌%
0.53‌%
Sustainable
Low
Duration
Bond
........................................................................
0.40‌
0.65‌
0.35‌
Sustainable
Total
Return
.............................................................................
0.44‌
0.75‌
0.39‌
Fund
Name
Fees
Waived
and/or
Reimbursed
by
the
Manager
Sustainable
High
Yield
Bond
...................................................................................................
$
401,022
Sustainable
Low
Duration
Bond
.................................................................................................
280,980
Sustainable
Total
Return
......................................................................................................
362,545
Sustainable
High
Yield
Bond
.............................................................................................
$
18,643‌
Sustainable
Low
Duration
Bond
...........................................................................................
19,574‌
Sustainable
Total
Return
...............................................................................................
18,703‌
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
76
In
addition,
these
amounts
waived
and/or
reimbursed
by
the
Manager are
included
in administration
fees
waived
by
the
Manager
—
class
specific,
respectively,
and
transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific,
respectively,
in
the
Statements
of
Operations.
For
the period
ended
September
30,
2022,
class
specific
expense
waivers
and/or
reimbursements were
as
follows: 
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.
Effective
July
22,
2028,
the
repayment
arrangement
between
Sustainable
High
Yield
Bond
and
the
Manager
pursuant
to
which
such
Fund
may
be
required
to
repay
amounts
waived
and/or
reimbursed
under the
Fund’s
contractual
caps
on
net
expenses
will
be
terminated.
Effective
October
19,
2028,
the
repayment
arrangement
between
Sustainable
Low
Duration
Bond
and
Sustainable
Total
Return
and
the
Manager
pursuant
to
which
such
Fund
may
be
required
to
repay
amounts
waived
and/or
reimbursed
under
each
Fund's
contractual
caps
on
net
expenses
will
be
terminated.
As
of September
30,
2022,
the
fund
level
and
class
specific
waivers
and/or
reimbursements
subject
to
possible
future
recoupment
under
the
expense
limitation
agreement
are
as
follows:  
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
and
lend
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
Fund
Name/Share
Class
Administration
Fees
Waived
by
the
Manager
-
Class
Specific
Transfer
Agent
Fees
Waived
and/or
Reimbursed
by
the
Manager
-
Class
Specific
Sustainable
High
Yield
Bond
Institutional
....................................................................................
$
13‌
$
233‌
Investor
A
.....................................................................................
13‌
233‌
Class
K
......................................................................................
9,188‌
268‌
$
9,214‌
$
734‌
Sustainable
Low
Duration
Bond
Institutional
....................................................................................
13‌
216‌
Investor
A
.....................................................................................
18‌
203‌
Class
K
......................................................................................
9,164‌
250‌
$
9,195‌
$
669‌
Sustainable
Total
Return
Institutional
....................................................................................
13‌
218‌
Investor
A
.....................................................................................
13‌
174‌
Class
K
......................................................................................
8,764‌
250‌
$
8,790‌
$
642‌
Expiring
September
30,
2023
2024
Sustainable
High
Yield
Bond
Fund
Level
......................................................................................
$
132,18
3‌
$
419,665‌
Institutional
......................................................................................
64‌
246‌
Investor
A
.......................................................................................
64‌
246‌
Class
K
.........................................................................................
1,977‌
9,456‌
Sustainable
Low
Duration
Bond
Fund
Level
......................................................................................
—‌
300,554‌
Institutional
......................................................................................
—‌
229‌
Investor
A
.......................................................................................
—‌
221‌
Class
K
.........................................................................................
—‌
9,414‌
Sustainable
Total
Return
Fund
Level
......................................................................................
—‌
381,248‌
Institutional
......................................................................................
—‌
231‌
Investor
A
.......................................................................................
—‌
187‌
Class
K
.........................................................................................
—‌
9,014‌
Notes
to
Financial
Statements
(continued)
77
Notes
to
Financial
Statements
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 period
ended
September
30,
2022,
the
Funds
did
not
participate
in
the
Interfund
Lending
Program.
Directors
and
Officers:
Certain
directors
and/or
officers
of
the Corporation
and
the
Trust are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Funds
reimburse
the
Manager
for
a
portion
of
the
compensation
paid
to
the 
Funds’
Chief
Compliance
Officer,
which
is
included
in 
Directors
 and
Officer
in
the
Statements
of
Operations. 
Other
Transactions:
During
the 
period
ended
September
30,
2022
, 
Sustainable
Total
Return
received
a
reimbursement
of $3,180
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 period ended
September
30,
2022,
purchases
and
sales
of
investments,
including
paydowns,
mortgage
dollar
rolls and
excluding
short-term
securities,
were
as
follows:
For
the period ended
September
30,
2022,
purchases
and
sales
related
to
mortgage
dollar
rolls
were
as
follows:
8.
INCOME
TAX
INFORMATION 
It
is
each
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required. 
Each Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
each
Fund’s
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
years
after
they
are
filed.
The
statutes
of
limitations
on
each
Fund’s
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction. 
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Funds
as
of
September
30,
2022,
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 NAVs
per
share.
As
of
period
end,
permanent
differences
attributable
to
non-deductible
expenses
were reclassified
to
the
following
accounts:
The
tax
character
of
distributions
paid
was
as
follows: 
U.S.
Government
Securities
Other
Securities
Fund
Name
Purchases
Sales
Purchases
Sales
Sustainable
High
Yield
Bond
..............................................
$
—‌
$
—‌
$
21,274,988‌
$
21,489,552‌
Sustainable
Low
Duration
Bond
............................................
71,201,947‌
57,749,793‌
57,199,250‌
21,586,273‌
Sustainable
Total
Return
.................................................
17,009,088‌
12,397,215‌
323,797,019‌
278,079,542‌
Fund
Name
Purchases
Sales
Sustainable
Low
Duration
Bond
............................................................................
$
4,670,912‌
$
4,679,395‌
Sustainable
Total
Return
.................................................................................
117,500,401‌
117,610,666‌
Fund
Name
Paid-In
Capital
Accumulated
Earnings
(Loss)
Sustainable
High
Yield
Bond
...................................................................
$
(76,247‌)
$
76,247‌
Sustainable
Low
Duration
Bond
.................................................................
(74,922‌)
74,922‌
Sustainable
Total
Return
......................................................................
(66,508‌)
66,508‌
—‌
Fund
Name
Period
Ended
09/30/22
Period
Ended
09/30/21
Sustainable
High
Yield
Bond
Ordinary
income
...........................................................................................
$
2,047,989‌
$
312,396‌
Sustainable
Low
Duration
Bond
Ordinary
income
...........................................................................................
$
667,733‌
$
—‌
Sustainable
Total
Return
Ordinary
income
...........................................................................................
$
860,907‌
$
—‌
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
78
As
of
September
30,
2022,
the
tax
components
of
accumulated earnings
(loss) were
as
follows:  
(a)
Amounts
available
to
offset
future
realized
capital
gains.
(b)
The
difference
between
book-basis
and
tax-basis
net
unrealized
gains
(losses)
was
attributable
primarily
to
the
tax
deferral
of
losses
on
wash
sales
and
amortization
methods
of
premiums
and
discounts
on
fixed
income,
the
realization
for
tax
purposes
of
unrealized
gains
(losses)
on
certain
futures,
option
and
foreign
currency
contracts
and
the
accounting
for
swap
agreements.
As
of
September
30,
2022, gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows: 
9.
BANK
BORROWINGS 
The
Corporation
and
the
Trust,
on
behalf
of
the
Funds,
along
with
certain
other
funds
managed
by
the
Manager
and
its
affiliates
(“Participating
Funds”),
is
a
party
to
a
364-day,
$2.50
billion
credit
agreement
with
a
group
of
lenders.
Under
this
agreement,
the
Funds
may
borrow
to
fund
shareholder
redemptions.
Excluding
commitments
designated
for
certain
individual
funds,
the
Participating
Funds,
including
the
Funds,
can
borrow
up
to
an
aggregate
commitment
amount
of
$1.75
billion
at
any
time
outstanding,
subject
to
asset
coverage
and
other
limitations
as
specified
in
the
agreement.
The
credit
agreement
has
the
following
terms:
a
fee
of
0.10%
per
annum
on
unused
commitment
amounts
and
interest
at
a
rate
equal
to
the
higher
of
(a)
Overnight
Bank
Funding
Rate
(“OBFR”)
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.80%
per
annum
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
or
(c)
the
sum
of
(x) Daily
Simple
Secured
Overnight
Financing
Rate
(“SOFR”)
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.10%
and
(y) 0.80%
per
annum.
The
agreement
expires
in
April
2023
unless
extended
or
renewed.
These
fees
were
allocated
among
such
funds
based
upon
portions
of
the
aggregate
commitment
available
to
them
and
relative
net
assets
of
Participating
Funds.
During
the period ended
September
30,
2022,
the
Funds
did
not
borrow
under
the
credit
agreement.
10.
 PRINCIPAL
RISKS 
In
the
normal
course
of
business, the
Funds
invest
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
each
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Funds
and their
investments.
Each
Fund’s
prospectus
provides
details
of
the
risks
to
which
each
Fund
is
subject. 
Market
Risk
:
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.
Municipal
securities
are
subject
to
the
risk
that
litigation,
legislation
or
other
political
events,
local
business
or
economic
conditions,
credit
rating
downgrades,
or
the
bankruptcy
of
the
issuer
could
have
a
significant
effect
on
an
issuer’s
ability
to
make
payments
of
principal
and/or
interest
or
otherwise
affect
the
value
of
such
securities.
Municipal
securities
can
be
significantly
affected
by
political
or
economic
changes,
including
changes
made
in
the
law
after
issuance
of
the
securities,
as
well
as
uncertainties
in
the
municipal
market
related
to,
taxation,
legislative
changes
or
the
rights
of
municipal
security
holders,
including
in
connection
with
an
issuer
insolvency.
Municipal
securities
backed
by
current
or
anticipated
revenues
from
a
specific
project
or
specific
assets
can
be
negatively
affected
by
the
discontinuance
of
the
tax
benefits
supporting
the
project
or
assets
or
the
inability
to
collect
revenues
for
the
project
or
from
the
assets.
Municipal
securities
may
be
less
liquid
than
taxable
bonds,
and
there
may
be
less
publicly
available
information
on
the
financial
condition
of
municipal
security
issuers
than
for
issuers
of
other
securities.
An
outbreak
of
respiratory
disease
caused
by
a
novel
coronavirus
has
developed
into
a
global
pandemic
and
has
resulted
in
closing
borders,
quarantines,
disruptions
to
supply
chains
and
customer
activity,
as
well
as
general
concern
and
uncertainty.
The
impact
of
this
pandemic,
and
other
global
health
crises
that
may
arise
in
the
future,
could
affect
the
economies
of
many
nations,
individual
companies
and
the
market
in
general
in
ways
that
cannot
necessarily
be
foreseen
at
the
present
time.
This
pandemic
may
result
in
substantial
market
volatility
and
may
adversely
impact
the
prices
and
liquidity
of
a
fund’s
investments.
Although
vaccines
have
been
developed
and
approved
for
use
by
various
governments,
the duration
of
this
pandemic
and
its
effects
cannot
be
determined
with
certainty.
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
Name
Undistributed
Ordinary
Income
Non-Expiring
Capital
Loss
Carryforwards
(a)
Net
Unrealized
Gains
(Losses)
(b)
Total
Sustainable
High
Yield
Bond
....................................................
$
36,154‌
$
(1,711,104‌)
$
(7,320,689‌)
$
(8,995,639‌)
Sustainable
Low
Duration
Bond
..................................................
791,577‌
(375,65
1‌
)
(4,085,025‌)
(3,669,099‌)
Sustainable
Total
Return
.......................................................
712,192‌
(3,162,757‌)
(6,337,803‌)
(8,788,368‌)
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Sustainable
High
Yield
Bond
..........................................
$
47,962,057‌
$
1,405‌
$
(7,322,094‌)
$
(7,320,689‌)
Sustainable
Low
Duration
Bond
........................................
52,757,990‌
451,685‌
(4,535,106‌)
(4,083,421‌)
Sustainable
Total
Return
............................................
55,498,278‌
562,861‌
(6,898,516‌)
(6,335,655‌)
Notes
to
Financial
Statements
(continued)
79
Notes
to
Financial
Statements
Fund
may
invest
in
illiquid
investments.
An
illiquid
investment
is
any
investment
that a
Fund
reasonably
expects
cannot
be
sold
or
disposed
of
in
current
market
conditions
in
seven
calendar
days
or
less
without
the
sale
or
disposition
significantly
changing
the
market
value
of
the
investment. A
Fund
may
experience
difficulty
in
selling
illiquid
investments
in
a
timely
manner
at
the
price
that it
believes
the
investments
are
worth.
Prices
may
fluctuate
widely
over
short
or
extended
periods
in
response
to
company,
market
or
economic
news.
Markets
also
tend
to
move
in
cycles,
with
periods
of
rising
and
falling
prices.
This
volatility
may
cause
each
Fund’s
NAV
to
experience
significant
increases
or
decreases
over
short
periods
of
time.
If
there
is
a
general
decline
in
the
securities
and
other
markets,
the
NAV
of a
Fund
may
lose
value,
regardless
of
the
individual
results
of
the
securities
and
other
instruments
in
which a
Fund
invests. 
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,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Funds
manage
counterparty
credit
risk
by
entering
into
transactions
only
with
counterparties
that
the
Manager
believes
have
the
financial
resources
to
honor
their
obligations
and
by
monitoring
the
financial
stability
of
those
counterparties.
Financial
assets,
which
potentially
expose
the
Funds
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
receivables
due
from
counterparties.
The
extent
of
the
Funds’
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statements
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Funds. 
A
derivative
contract
may
suffer
a
mark-to-market
loss
if
the
value
of
the
contract
decreases
due
to
an
unfavorable
change
in
the
market
rates
or
values
of
the
underlying
instrument.
Losses
can
also
occur
if
the
counterparty
does
not
perform
under
the
contract.
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,
exchange-traded
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:
 A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund’s
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
each Fund’s
portfolio
are
disclosed
in
its Schedule
of
Investments.
Certain
Funds
invest
a
significant
portion
of their
assets
in
high
yield
securities.
High
yield
securities
that
are
rated
below
investment-grade
(commonly
referred
to
as
“junk
bonds”)
or
are
unrated
may
be
deemed
speculative,
involve
greater
levels
of
risk
than
higher-rated
securities
of
similar
maturity
and
are
more
likely
to
default.
High
yield
securities
may
be
issued
by
less
creditworthy
issuers,
and
issuers
of
high
yield
securities
may
be
unable
to
meet
their
interest
or
principal
payment
obligations.
High
yield
securities
are
subject
to
extreme
price
fluctuations,
may
be
less
liquid
than
higher
rated
fixed-income
securities,
even
under
normal
economic
conditions,
and
frequently
have
redemption
features.
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
decrease
as
interest
rates
rise
and
increase
as
interest
rates
fall.
The
Funds
may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the
recent
period
of
historically
low
interest rates. The
Federal
Reserve
has
recently
begun
to
raise
the
federal
funds
rate
as
part
of
its
efforts
to
address
inflation.
There
is
a
risk
that
interest
rates
will
continue
to
rise,
which
will
likely
drive
down
the
prices
of
bonds
and
other
fixed-income
securities,
and
could
negatively
impact certain
Funds’
performance.
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.
When
a
Fund
concentrates
its
investments
in
this
manner,
it
assumes
a
greater
risk
of
prepayment
or
payment
extension
by
securities
issuers.
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.
Investment
percentages
in
these
securities
are
presented
in
the
Schedules
of
Investments.
Significant
Shareholder
Redemption
Risk:
Certain
shareholders
may
own
or
manage
a
substantial
amount
of
fund
shares
and/or
hold
their
fund
investments
for
a
limited
period
of
time.
Large
redemptions
of
fund
shares
by
these
shareholders
may
force
a
fund
to
sell
portfolio
securities,
which
may
negatively
impact
the
fund’s
NAV,
increase
the
fund’s
brokerage
costs,
and/or
accelerate
the
realization
of
taxable
income/gains
and
cause
the
fund
to
make
additional
taxable
distributions
to
shareholders.
LIBOR
Transition
Risk:
The
United
Kingdom’s
Financial
Conduct
Authority
announced
a phase
out of
the
LIBOR.
Although
many
LIBOR
rates
ceased to
be
published
or
no
longer
are representative
of
the
underlying
market
they
seek
to
measure
after
December
31,
2021,
a
selection
of
widely
used
USD
LIBOR
rates
will
continue
to
be
published
through
June
2023
in
order
to
assist
with
the
transition.
The
Funds
may
be
exposed
to
financial
instruments
tied
to
LIBOR
to
determine
payment
obligations,
financing
terms,
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
80
hedging
strategies
or
investment
value.
The
transition
process
away
from
LIBOR
might
lead
to
increased
volatility
and
illiquidity
in
markets
for,
and
reduce
the
effectiveness
of
new
hedges
placed
against
instruments
whose
terms
currently
include
LIBOR.
The
ultimate
effect
of
the
LIBOR
transition
process
on
the
Funds
is
uncertain. 
11.
CAPITAL
SHARE
TRANSACTIONS 
Transactions
in
capital
shares
for
each
class
were
as
follows:
(a)
Commencement
of
operations.
d
Year
Ended
09/30/22
Period
from
07/22/21
(a)
to
09/30/21
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
Sustainable
High
Yield
Bond
Institutional
Shares
sold
.............................................
184‌
$
1,599‌
10,000‌
$
100,000‌
Shares
issued
in
reinvestment
of
distributions
........................
3‌
26‌
—‌
—‌
187‌
$
1,625‌
10,000‌
$
100,000‌
Investor
A
Shares
sold
.............................................
283‌
$
2,587‌
10,000‌
$
100,000‌
Shares
issued
in
reinvestment
of
distributions
........................
6‌
51‌
—‌
—‌
289‌
$
2,638‌
10,000‌
$
100,000‌
Class
K
Shares
sold
.............................................
—‌
$
—‌
4,980,000‌
$
49,800,000‌
—‌
$
—‌
4,980,000‌
$
49,800,000‌
476‌
$
4,263‌
5,000,000‌
$
50,000,000‌
d
Period
from
10/18/21
(a)
to
09/30/22
Fund
Name/Share
Class
Shares
Amount
Sustainable
Low
Duration
Bond
Institutional
Shares
sold
.............................................................................
10,001‌
$
100,010‌
Shares
redeemed
.........................................................................
(1‌)
(10‌)
10,000‌
$
100,000‌
Investor
A
Shares
sold
.............................................................................
21,953‌
$
216,401‌
Shares
issued
in
reinvestment
of
distributions
........................................................
62‌
594‌
Shares
redeemed
.........................................................................
(10,111‌)
(96,014‌)
11,904‌
$
120,981‌
Class
K
Shares
sold
.............................................................................
4,980,008‌
$
49,800,077‌
Shares
issued
in
reinvestment
of
distributions
........................................................
—‌
—‌
Shares
redeemed
.........................................................................
(8‌)
(116‌)
4,980,000‌
$
49,799,961‌
5,001,904‌
$
50,020,942‌
Sustainable
Total
Return
Institutional
Shares
sold
.............................................................................
10,001‌
$
100,010‌
Shares
redeemed
.........................................................................
(1‌)
(10‌)
10,000‌
$
100,000‌
Investor
A
Shares
sold
.............................................................................
11,178‌
$
111,490‌
Shares
issued
in
reinvestment
of
distributions
........................................................
15‌
133‌
Shares
redeemed
.........................................................................
(1‌)
(10‌)
11,192‌
$
111,613‌
Class
K
Shares
sold
.............................................................................
4,980,001‌
$
49,800,011‌
Shares
redeemed
.........................................................................
(1‌)
(10‌)
4,980,000‌
$
49,800,001‌
5,001,192‌
$
50,011,614‌
Notes
to
Financial
Statements
(continued)
81
Notes
to
Financial
Statements
As
of
September
30,
2022,
shares
owned
by
BlackRock
Financial
Management,
Inc.,
an
affiliate
of
the
Funds,
were
as
follows:
12.
SUBSEQUENT
EVENTS 
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Funds
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Institutional
Investor
A
Class
K
Sustainable
High
Yield
Bond
..........................................................................
$
10,000‌
$
10,000‌
$
4,980,000‌
Sustainable
Low
Duration
Bond
........................................................................
10,000‌
10,000‌
4,980,000‌
Sustainable
Total
Return
.............................................................................
10,000‌
10,000‌
4,980,000‌
Report
of
Independent
Registered
Public
Accounting
Firm
2022
BlackRock
Annual
Report
to
Shareholders
82
To
the
Shareholders
of
BlackRock
Sustainable
High
Yield
Bond
Fund,
BlackRock
Sustainable
Low
Duration
Bond
Fund
and
BlackRock
Sustainable
Total
Return
Fund and
the
Board
of
Trustees/Directors of
BlackRock
Funds
V
and
BlackRock
Bond
Fund,
Inc.:
Opinion
on
the
Financial
Statements
and
Financial
Highlights
We
have
audited
the
accompanying
statement
of
assets
and
liabilities
of
BlackRock
Sustainable
High
Yield
Bond
Fund
of
BlackRock
Funds
V,
including
the
schedule
of
investments,
as
of
September
30,
2022,
the
related
statement
of
operations
for
the
year
then
ended,
the
statements
of
changes
in
net
assets
and
the
financial
highlights
for
the
year
then
ended
and
for
the
period
from
July
22,
2021
(commencement
of
operations)
through
September
30,
2021,
and
the
related
notes.
We
have
also
audited
the
accompanying
statements
of
assets
and
liabilities
of
BlackRock
Sustainable
Low
Duration
Bond
Fund
of
BlackRock
Funds
V
and
Blackrock
Sustainable
Total
Return
Fund
of
BlackRock
Bond
Fund,
Inc.
(collectively
with
BlackRock
Sustainable
High
Yield
Bond
Fund,
the
“Funds”),
including
the
schedules
of
investments,
as
of
September
30,
2022,
the
related
statements
of
operations,
changes
in
net
assets,
and
the
financial
highlights
for
the
period
from
October
18,
2021
(commencement
of
operations)
through
September
30,
2022,
and
the
related
notes.
In
our
opinion,
the
financial
statements
and
financial
highlights
present
fairly,
in
all
material
respects,
the
financial
position
of
the
BlackRock
Sustainable
High
Yield
Bond
Fund
as
of
September
30,
2022,
and
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets,
and
the
financial
highlights
for
the
year
then
ended
and
for
the
period
from
July
22,
2021
(commencement
of
operations)
through
September
30,
2021,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Also,
in
our
opinion,
the
financial
statements
and
financial
highlights
present
fairly,
in
all
material
respects,
the
financial
position
of
the
BlackRock
Sustainable
Low
Duration
Bond
Fund
and
Blackrock
Sustainable
Total
Return
Fund
as
of
September
30,
2022,
and
the
results
of
their
operations,
the
changes
in
their
net
assets,
and
the
financial
highlights
for
the
period
from
October
18,
2021
(commencement
of
operations)
through
September
30,
2022,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
and
financial
highlights
are
the
responsibility
of
the
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
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB. 
We
conducted
our
audits
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
and
financial
highlights
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
The
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,
2022,
by
correspondence
with custodians
or
counterparties; when
replies
were
not
received,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
Deloitte
&
Touche
LLP
Boston,
Massachusetts
November
22,
2022
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
1992.
Important
Tax
Information
(unaudited)
83
Important
Tax
Information
The
Funds
hereby
designate
the
following
amounts,
or
maximum
amounts
allowable
by
law,
of
distributions
from
direct
federal
obligation
interest
for
the
fiscal
period
ended
September
30,
2022:
The
law
varies
in
each
state
as
to
whether
and
what
percent
of
ordinary
income
dividends
attributable
to
federal
obligations
is
exempt
from
state
income
tax.
Shareholders
are
advised
to
check
with
their
tax
advisers
to
determine
if
any
portion
of
the
dividends
received
is
exempt
from
state
income
tax.
The
Funds
hereby
designate
the
following
amounts,
or
maximum
amounts
allowable by
law,
as
interest
income
eligible
to
be
treated
as
a
Section
163(j)
interest
dividend
for
the
fiscal
period
ended
September
30,
2022:
The
Funds
hereby
designate
the
following
amounts,
or
maximum
amounts
allowable
by
law,
as
interest-related
dividends
eligible
for
exemption
from
U.S.
withholding
tax
for
nonresident
aliens
and
foreign
corporations
for
the
fiscal
period
ended
September
30,
2022:
Fund
Name
Federal
Obligation
Interest
Sustainable
Low
Duration
Bond
.........................................................................................
$
137,340
Sustainable
Total
Return
..............................................................................................
78,228
Fund
Name
Interest
Dividends
Sustainable
High
Yield
Bond
...........................................................................................
$
2,060,127
Sustainable
Low
Duration
Bond
.........................................................................................
744,724
Sustainable
Total
Return
..............................................................................................
891,036
Fund
Name
Interest-Related
Dividends
Sustainable
High
Yield
Bond
...........................................................................................
$
1,686,053
Sustainable
Low
Duration
Bond
.........................................................................................
611,262
Sustainable
Total
Return
..............................................................................................
744,035
Director
and
Officer
Information
2022
BlackRock
Annual
Report
to
Shareholders
84
Independent
Directors
(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
R.
Glenn
Hubbard
1958
Chair
of
the
Board
(Since
2022)
Director
(Since
2019)
Dean,
Columbia
Business
School
from
2004
to
2019;
Faculty
member,
Columbia
Business
School
since
1988.
69
RICs
consisting
of
100
Portfolios
ADP
(data
and
information
services)
2004-2020;
Metropolitan
Life
Insurance
Company
(insurance);
KKR
Financial
Corporation
(finance)
from
2004
until
2014
W.
Carl
Kester
(d)
1951
Vice
Chair
of
the
Board
(Since
2022)
Director
(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.
71
RICs
consisting
of
102
Portfolios
None
Cynthia
L.
Egan
1955
Director
(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.
69
RICs
consisting
of
100
Portfolios
Unum
(insurance);
The
Hanover
Insurance
Group
(Board
Chair)
(insurance);
Huntsman
Corporation
(Lead
Independent
Director
and
non
Executive
Vice
Chair
of
the
Board)
(chemical
products);
Envestnet
(investment
platform)
from
2013
until
2016
Frank
J.
Fabozzi
(d)
1948
Director
(Since
2019)
Editor
of
The
Journal
of
Portfolio
Management
since
1986;
Professor
of
Finance,
EDHEC
Business
School
(France)
from
2011
to
2022;
Professor
of
Practice,
Johns
Hopkins
University
since
2021;
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;
Visiting
Professor,
Rutgers
University
for
the
Spring
2019
semester;
Visiting
Professor,
New
York
University
for
the
2019
academic
year;
Adjunct
Professor
of
Finance,
Carnegie
Mellon
University
in
fall
2020
semester.
71
RICs
consisting
of
102
Portfolios
None
Lorenzo
A.
Flores
1964
Director
(Since
2021)
Vice
Chairman,
Kioxia,
Inc.
since
2019;
Chief
Financial
Officer,
Xilinx,
Inc.
from
2016
to
2019;
Corporate
Controller,
Xilinx,
Inc.
from
2008
to
2016.
69
RICs
consisting
of
100
Portfolios
None
Stayce
D.
Harris
1959
Director
(Since
2021)
Lieutenant
General,
Inspector
General,
Office
of
the
Secretary
of
the
United
States
Air
Force
from
2017
to
2019;
Lieutenant
General,
Assistant
Vice
Chief
of
Staff
and
Director,
Air
Staff,
United
States
Air
Force
from
2016
to
2017;
Major
General,
Commander,
22nd
Air
Force,
AFRC,
Dobbins
Air
Reserve
Base,
Georgia
from
2014
to
2016;
Pilot,
United
Airlines
from
1990
to
2020.
69
RICs
consisting
of
100
Portfolios
The
Boeing
Company
J.
Phillip
Holloman
1955
Director
(Since
2021)
President
and
Chief
Operating
Officer,
Cintas
Corporation
from
2008
to
2018.
69
RICs
consisting
of
100
Portfolios
PulteGroup,
Inc.
(home
construction);
Rockwell
Automation
Inc.
(industrial
automation)
Catherine
A.
Lynch
(d)
1961
Director
(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.
71
RICs
consisting
of
102
Portfolios
PennyMac
Mortgage
Investment
Trust
Director
and
Officer
Information
(continued)
85
Director
and
Officer
Information
Interested
Directors
(a)(e)
(a)
The
address
of
each
Director
is
c/o
BlackRock,
Inc.,
55
East
52nd
Street,
New
York,
New
York
10055.
(b)
Each
Independent
Director
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
Corporation’s/
Trust’s
by-laws
or
charter
or
statute,
or
until
December
31
of
the
year
in
which
he
or
she
turns
75.
Directors
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
Corporation’s/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
Directors
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
Directors
first
became
members
of
the
boards
of
other
legacy
MLIM
or
legacy
BlackRock
funds
as
follows:
Frank
J.
Fabozzi,
1988;
R.
Glenn
Hubbard,
2004;
and
W.
Carl
Kester,
1995.
Certain
other
Independent
Directors
became
members
of
the
boards
of
the
closed-end
funds
in
the
Fixed-Income
Complex
as
follows:
Cynthia
L.
Egan,
2016;
and
Catherine
A.
Lynch,
2016.
(d)
Dr.
Fabozzi,
Dr.
Kester,
Ms.
Lynch
and
Mr.
Perlowski
are
also
Directors
of
the
BlackRock
Credit
Strategies
Fund
and
BlackRock
Private
Investments
Fund.
(e)
Mr.
Fairbairn
and
Mr.
Perlowski
are
both
“interested
persons,”
as
defined
in
the
1940
Act,
of
the
Corporation/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.
Robert
Fairbairn
1965
Director
(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.
97
RICs
consisting
of
264
Portfolios
None
John
M.
Perlowski
(d)
1964
Director
(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.
99
RICs
consisting
of
266
Portfolios
None
Director
and
Officer
Information
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
86
Officers
Who
Are
Not
Directors
(a)
(a)
The
address
of
each
Officer
is
c/o
BlackRock,
Inc.,
55
East
52nd
Street,
New
York,
New
York
10055.
(b)
Officers
of
the
Corporation/Trust
serve
at
the
pleasure
of
the
Board.
Further
information
about
the
Corporation’s/Trust’s
Directors
and
Officers
is
available
in
the
Funds’
Statement
of
Additional
Information,
which
can
be
obtained
without
charge
by
calling
(800)
441-7762.
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
Americas
Product
Development
and
Governance
for
BlackRock’s
Global
Product
Group
since
2019;
Head
of
Product
Structure
and
Oversight
for
BlackRock's
U.S.
Wealth
Advisory
Group
from
2013
to
2019.
Trent
Walker
1974
Chief
Financial
Officer
(Since
2021)
Managing
Director
of
BlackRock,
Inc.
since
September
2019;
Executive
Vice
President
of
PIMCO
from
2016
to
2019;
Senior
Vice
President
of
PIMCO
from
2008
to
2015;
Treasurer
from
2013
to
2019
and
Assistant
Treasurer
from
2007
to
2017
of
PIMCO
Funds,
PIMCO
Variable
Insurance
Trust,
PIMCO
ETF
Trust,
PIMCO
Equity
Series,
PIMCO
Equity
Series
VIT,
PIMCO
Managed
Accounts
Trust,
2
PIMCO-sponsored
interval
funds
and
21
PIMCO-sponsored
closed-end
funds.
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.
Effective
May
31,
2022,
Karen
P.
Robards
retired
as
a
Director
of
the
Corporation/Trust.
Effective
December
31,
2021,
Richard
E.
Cavanagh
and
Michael
J.
Castellano
retired
as
Directors
of
the
Corporation/Trust.
Additional
Information
87
Additional
Information
General
Information 
Quarterly
performance,
semi-annual
and
annual
reports,
current
net
asset
value
and
other
information
regarding
the
Funds
may
be
found
on
BlackRock’s
website,
which
can
be
accessed
at
blackrock.com
.
Any
reference
to
BlackRock’s
website
in
this
report
is
intended
to
allow
investors
public
access
to
information
regarding
the
Funds
and
does
not,
and
is
not
intended
to,
incorporate
BlackRock’s
website
in
this
report.
Householding
The
Funds
will
mail
only
one
copy
of
shareholder
documents,
including
prospectuses,
annual
and
semi-annual
reports,
Rule
30e-3
notices
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
schedules
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to their
reports
on
Form
N-PORT.
The
Funds’
Forms
N-PORT are
available
on
the
SEC’s
website
at
sec.gov
.
Additionally,
each
Fund
makes
its
portfolio
holdings
for
the
first
and
third
quarters
of
each
fiscal
year
available
at
blackrock.com/fundreports
.
Availability
of
Proxy
Voting
Policies,
Procedures
and
Voting
Records
A
description
of
the
policies
and
procedures
that
the
Funds
use
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
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
without
charge,
upon
request (1)
by
calling
(800)
441-
7762
;
(2)
on
the
BlackRock
website
at
blackrock.com
;
and
(3)
on
the
SEC’s
website
at
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
blackrock.com
for
more
information.
Shareholder
Privileges
Account
Information
Call
us
at
(800)
441-7762
from
8:00
AM
to
6:00
PM
ET
on
any
business
day
to
get
information
about
your
account
balances,
recent
transactions
and
share
prices.
You
can
also
visit
blackrock.com
for
more
information.
Automatic
Investment
Plans
Investor
class
shareholders
who
want
to
invest
regularly
can
arrange
to
have
$50
or
more
automatically
deducted
from
their
checking
or
savings
account
and
invested
in
any
of
the
BlackRock
funds.
Systematic
Withdrawal
Plans
Investor
class
shareholders
can
establish
a
systematic
withdrawal
plan
and
receive
periodic
payments
of
$50
or
more
from
their
BlackRock
funds,
as
long
as
their
account
balance
is
at
least
$10,000.
Retirement
Plans
Shareholders
may
make
investments
in
conjunction
with
Traditional,
Rollover,
Roth,
Coverdell,
Simple
IRAs,
SEP
IRAs
and
403(b)
Plans.
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.
Additional
Information
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
88
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.
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Advisers
BlackRock
International
Limited
Edinburgh,
EH3
8BL
United
Kingdom
BlackRock
(Singapore)
Limited
(a)
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
BlackRock
Sustainable
Low
Duration
Bond
Fund
and
BlackRock
Sustainable
Total
Return
Fund.
Glossary
of
Terms
Used
in
this
Report
89
Glossary
of
Terms
Used
in
this
Report
Currency
Abbreviation
EUR
Euro
GBP
British
Pound
JPY
Japanese
Yen
USD
United
States
Dollar
Portfolio
Abbreviation
CLO
Collateralized
Loan
Obligation
CSMC
Credit
Suisse
Mortgage
Capital
DAC
Designated
Activity
Company
EURIBOR
Euro
Interbank
Offered
Rate
GO
General
Obligation
Bonds
LIBOR
London
Interbank
Offered
Rate
MSCI
Morgan
Stanley
Capital
International
OTC
Over-the-counter
RB
Revenue
Bonds
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
TBA
To-be-announced
TONAR
Tokyo
Overnight
Average
Rate
Want
to
know
more?
blackrock.com
|
800-441-7762
This
report
is
intended
for
current
holders.
It
is
not
authorized
for
use
as
an
offer
of
sale
or
a
solicitation
of
an
offer
to
buy
shares
of
the
Funds
unless
preceded
or
accompanied
by
the
Funds’
current
prospectus.
Past
performance
results
shown
in
this
report
should
not
be
considered
a
representation
of
future
performance.
Investment
returns
and
principal
value
of
shares
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Statements
and
other
information
herein
are
as
dated
and
are
subject
to
change.
SHYB-09/22-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:
 
               Frank J. Fabozzi
Lorenzo A. Flores
Catherine A. Lynch
 

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.
 
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 Sustainable Total Return Fund
$74,970
N/A
$44
N/A
$28,900
N/A
$0
N/A
 
The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with 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
$2,098,000
$2,032,000
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 $2,098,000 and $2,032,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription.  These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:
 
The Committee has adopted policies and procedures with regard to the pre-approval of services.  Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee.  The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant.  Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”).  The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period.  Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project.  For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.
 
              Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services).  The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting.  At this meeting, an analysis of such services is presented to the Committee for ratification.  The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.


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

(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 Sustainable Total Return Fund
$28,944
N/A
 
              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
$2,098,000
$2,032,000
 
              These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
 
              (h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and
the Affiliated Service Providers
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
               (i) – Not Applicable
               (j) – Not Applicable
 
Item 5 –  Audit Committee of Listed Registrant – Not Applicable
Item 6 – Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) 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
Item 13 – Exhibits attached hereto
              (a)(1) Code of Ethics – See Item 2
              (a)(2) Section 302 Certifications are attached
             
section302
(a)(3)
Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable
(a)(4)
Change in Registrant’s independent public accountant – Not Applicable
               (b) Section 906 Certifications are attached
 
 

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 Bond Fund, Inc.
 
By:     /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Bond Fund, Inc.
 
Date: November 22, 2022
 
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 Bond Fund, Inc.
 
 
Date: November 22, 2022
 
By:     /s/ Trent Walker
          Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Bond Fund, Inc.
 
Date: November 22, 2022