0001727644-23-000047.txt : 20230601 0001727644-23-000047.hdr.sgml : 20230601 20230601131707 ACCESSION NUMBER: 0001727644-23-000047 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20230331 FILED AS OF DATE: 20230601 DATE AS OF CHANGE: 20230601 EFFECTIVENESS DATE: 20230601 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK BOND FUND, INC. CENTRAL INDEX KEY: 0000276463 IRS NUMBER: 132949519 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02857 FILM NUMBER: 23983932 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 800-441-7762 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY CITY: WILMINGTON STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH BOND FUND INC DATE OF NAME CHANGE: 20030804 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH CORPORATE BOND FUND INC/NY DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: MERRILL LYNCH HIGH INCOME FUND INC - CORRECTED NAME CHANGE DATE OF NAME CHANGE: 19600201 0000276463 S000073727 BlackRock Sustainable Total Return Fund C000230842 Class K C000230843 Institutional C000230844 Investor A N-CSRS 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., 50 Hudson Yards, New York, NY 10001
 
Registrant’s telephone number, including area code: (800) 441-7762
 
Date of fiscal year end: 09/30/2023
 
Date of reporting period: 03/31/2023
 
Item 1 – Report to Stockholders
(a)  The Report to Shareholders is attached herewith.
             (b)  Not Applicable  

 
MARCH
31,
2023
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2023
Semi-Annual
Report
(Unaudited)
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,
Significant
economic
headwinds
emerged
during
the
12-month
reporting
period
ended
March
31,
2023,
as
investors
navigated
changing
economic
conditions
and
volatile
markets.
The
U.S.
economy
shrank
in
the
first
half
of
2022
before
returning
to
modest
growth
in
the
second
half
of
the
year,
marking
a
shift
to
a
more
challenging
post-reopening
economic
environment.
Changes
in
consumer
spending
patterns
and
a
tight
labor
market
led
to
elevated
inflation,
which
reached
a
40-year
high
before
beginning
to
moderate.
Equity
prices
fell
as
interest
rates
rose,
particularly
during
the
first
half
of
the
reporting
period.
Both
large-
and
small-capitalization
U.S.
stocks
declined,
although
equities
began
to
recover
in
the
second
half
of
the
period
as
inflation
eased
and
economic
growth
resumed.
Emerging
market
stocks
and
international
equities
from
developed
markets
declined
overall,
pressured
by
rising
interest
rates
and
volatile
commodities
prices.
The
10-year
U.S.
Treasury
yield
rose
during
the
reporting
period,
driving
its
price
down,
as
investors
reacted
to
fluctuating
inflation
data
and
attempted
to
anticipate
its
impact
on
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
and
higher
interest
rates
led
to
rising
borrowing
costs
for
corporate
issuers.
The
U.S.
Federal
Reserve
(the
“Fed”),
acknowledging
that
inflation
has
been
more
persistent
than
expected,
raised
interest
rates
eight
times.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
accelerated
the
reduction
of
its
balance
sheet.
Restricted
labor
supply
kept
inflation
elevated
even
as
other
inflation
drivers,
such
as
goods
prices
and
energy
costs,
moderated.
While
economic
growth
slowed
in
the
last
year,
we
believe
that
taming
inflation
requires
a
more
substantial
decline
that
lowers
demand
to
a
level
more
in
line
with
the
economy’s
productive
capacity.
Although
the
Fed
has
decelerated
the
pace
of
interest
rate
hikes,
we
believe
that
it
still
seems
determined
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,
but
the
dimming
economic
outlook
has
not
yet
been
fully
reflected
in
current
market
prices.
We
believe
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.
Turmoil
in
the
banking
sector
late
in
the
period
highlighted
the
potential
for
the
knock-on
effects
of
substantially
higher
interest
rates
to
disrupt
markets
with
little
warning.
While
we
favor
an
overweight
to
equities
in
the
long
term,
we
prefer
an
underweight
stance
on
equities
overall
in
the
near
term.
Expectations
for
corporate
earnings
remain
elevated,
which
seems
inconsistent
with
the
possibility
of
a
recession.
Nevertheless,
we
are
overweight
on
emerging
market
stocks
as
we
believe
a
weakening
U.S.
dollar
provides
a
supportive
backdrop.
We
also
see
long-term
opportunities
in
credit,
where
we
believe
that
valuations
are
appealing
and
higher
yields
provide
attractive
income,
although
we
are
neutral
on
credit
in
the
near
term,
as
we’re
concerned
about
tightening
credit
and
financial
conditions.
However,
we
believe
there
are
still
some
strong
opportunities
for
a
six-
to
twelve-month
horizon,
particularly
short-term
U.S.
Treasuries,
global
inflation-linked
bonds,
and
emerging
market
bonds
denominated
in
local
currency.
Overall,
our
view
is
that
investors
need
to
think
globally,
position
themselves
to
be
prepared
for
a
decarbonizing
economy,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
blackrock.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
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
March
31,
2023
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
15.62
%
(7.73
)%
U.S.
small
cap
equities
(Russell
2000
®
Index)
9.14
(11.61
)
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
27.27
(1.38
)
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
14.04
(10.70
)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
1.93
2.52
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
4.38
(6.90
)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
4.89
(4.78
)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
7.00
0.26
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
7.88
(3.35
)
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Semi-Annual
Report:
Fund
Summary
........................................................................................................
4
About
Fund
Performance
.................................................................................................
10
Disclosure
of
Expenses
...................................................................................................
11
Derivative
Financial
Instruments
.............................................................................................
11
Financial
Statements:
Schedules
of
Investments
...............................................................................................
12
Statements
of
Assets
and
Liabilities
.........................................................................................
50
Statements
of
Operations
................................................................................................
53
Statements
of
Changes
in
Net
Assets
........................................................................................
54
Financial
Highlights
.....................................................................................................
56
Notes
to
Financial
Statements
...............................................................................................
65
Statement
Regarding
Liquidity
Risk
Management
Program
.............................................................................
79
Additional
Information
....................................................................................................
80
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
82
Fund
Summary
as
of
March
31,
2023
2023
BlackRock
Semi-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
six
month
period
ended
March
31,
2023,
all
of
the
Fund's
share
classes
outperformed
its
benchmark,
the
Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index.
What
factors
influenced
performance?
Security
selection
in
high
yield
bonds
was
the
top
contributor,
followed
by
an
overweight
in
CCC-rated
issues.
From
a
sector
perspective,
underweights
in
media
and
entertainment
and
retail
helped
results.
An
underweight
allocation
to
the
leisure
sector
detracted
from
performance,
as
did
an
elevated
cash
position.
An
underweight
in
gaming
and
an
overweight
in
wireline
telecommunications
detracted
from
performance,
as
well.
Describe
recent
portfolio
activity.
The
Fund’s
allocation
to
investment-grade
bonds
increased
as
the
investment
adviser
believed
that
it
uncovered
attractive
relative
value
opportunities.
In
addition,
some
of
the
Fund’s
holdings
in
high
yield
bonds
were
upgraded
to
investment-grade
status.
This
trend
also
contributed
to
a
reduction
in
the
Fund’s
allocation
to
BB-rated
issues.
The
investment
adviser
reduced
the
Fund’s
allocation
to
CCC-rated
debt.
The
investment
adviser
sought
to
maintain
below-average
portfolio
risk
due
to
the
combination
of
rising
interest
rates
and
slowing
economic
growth.
As
a
result,
portfolio
beta
(sensitivity
to
market
movements)
declined
over
the
course
of
the
period.
Describe
portfolio
positioning
at
period
end.
The
Fund
was
underweight
in
BBs
and
overweight
in
Bs
and
CCCs,
and
it
maintained
the
out-of-benchmark
allocations
to
loans
and
investment-grade
corporates.
The
Fund
was
overweight
in
the
technology,
property
and
casualty
and
electric
utilities
sectors,
and
it
was
underweight
in
midstream
energy,
independent
energy
and
leisure
sectors.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Fund
Summary
as
of
March
31,
2023
(continued)
5
Fund
Summary
BlackRock
Sustainable
High
Yield
Bond
Fund
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.
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Portfolio
Information
Average
Annual
Total
Returns
(a)(b)
1
Year
Since
Inception
(c)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
......................................
7.63‌%
6.63‌%
8.15‌%
(3.10‌)%
N/A‌
(4.17‌)%
N/A‌
Investor
A
.......................................
7.08‌
6.11‌
8.01‌
(3.34‌)
(7.21‌)%
(4.41‌)
(6.69‌)%
Class
K
........................................
7.68‌
6.68‌
8.17‌
(3.06‌)
N/A‌
(4.13‌)
N/A‌
Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index
(d)
—‌
—‌
7.88‌
(3.35‌)
N/A‌
(4.07‌)
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees,
and
how
performance
was
calculated
for
certain
share
classes.
(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)
The
Fund
commenced
operations
on
July
22,
2021.
(d)
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.
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(10/01/22)
Ending
Account
Value
(03/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(10/01/22)
Ending
Account
Value
(03/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
1,081.50‌
$
2.96‌
$
1,000.00‌
$
1,022.09‌
$
2.87‌
0.57‌%
Investor
A
................................
1,000.00‌
1,080.10‌
4.25‌
1,000.00‌
1,020.84‌
4.13‌
0.82‌
Class
K
..................................
1,000.00‌
1,081.70‌
2.75‌
1,000.00‌
1,022.29‌
2.67‌
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
182/365
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
90.9‌
%
Floating
Rate
Loan
Interests
...........................
8.8‌
Common
Stocks
...................................
0.2‌
Preferred
Securities
.................................
0.1‌
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
A
............................................
0.2‌
%
BBB/Baa
.......................................
7.1‌
BB/Ba
.........................................
42.9‌
B
............................................
41.2‌
CCC/Caa
.......................................
8.1‌
NR
...........................................
0.5‌
(a)
Excludes
short-term
securities,
options
purchased
and
options
written.
(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
March
31,
2023
2023
BlackRock
Semi-Annual
Report
to
Shareholders
6
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
six
month
period
that
ended
on
March
31,
2023,
all
of
the
Fund’s
share
classes
outperformed
the
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,
asset-backed
securities
(“ABS”),
U.S.
Treasuries,
European
corporate
issues,
cash,
high
yield
bonds,
non-U.S.
government
debt
and
commercial
mortgage-backed
securities
(“CMBS”)
all
contributed
to
performance.
Duration
positioning
was
the
primary
detractor
from
performance,
followed
by
holdings
in
emerging
markets
debt
and
municipal
bonds.
(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.
In
the
aggregate,
the
Fund’s
use
of
derivatives
was
a
modest
detractor
from
performance.
The
Fund’s
cash
position
had
no
material
impact
on
performance.
Describe
recent
portfolio
activity.
The
investment
adviser
increased
the
Fund’s
allocation
to
U.S.
Treasuries
on
the
view
that
they
could
augment
portfolio
diversification
at
a
time
of
slowing
economic
growth
and
tight
yield
spreads
in
other
areas
of
the
market.
It
also
increased
the
Fund’s
holdings
in
callable
agency
MBS
as
the
investment
adviser
believed
they
had
attractive
valuations.
The
adviser
reduced
the
Fund’s
positions
in
CMBS,
non-U.S.
corporate
bonds,
and
non-U.S.
government
debt.
Since
the
Fund
is
managed
with
sustainability
goals
in
mind,
it
holds
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
slightly
reduced
the
Fund’s
holdings
in
this
area
in
late
2022,
as
yield
spreads
had
tightened
following
a
period
of
strong
performance.
Describe
portfolio
positioning
at
period
end.
The
Fund
was
underweight
in
U.S.
Treasuries,
non-U.S.
government
debt
and
the
emerging
markets.
It
was
overweight
in
mortgages,
ABS,
CMBS,
investment-grade
corporate
bonds
and
high
yield
bonds.
The
Fund’s
duration
was
shorter
than
that
of
the
benchmark.
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
March
31,
2023
(continued)
7
Fund
Summary
BlackRock
Sustainable
Low
Duration
Bond
Fund
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.
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Average
Annual
Total
Returns
(a)(b)
1
Year
Since
Inception
(c)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
......................................
4.37‌%
3.80‌%
3.01‌%
(0.34‌)%
N/A‌
(2.37‌)%
N/A‌
Investor
A
.......................................
4.02‌
3.47‌
2.88‌
(0.60‌)
(2.83‌)%
(2.62‌)
(4.13‌)%
Class
K
........................................
4.42‌
3.85‌
3.03‌
(0.31‌)
N/A‌
(2.33‌)
N/A‌
ICE
BofA
1-3
Year
U.S.
Corporate
&
Government
Index
(d)
.....
—‌
—‌
2.40‌
0.30‌
N/A‌
(1.82‌)
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,
and
how
performance
was
calculated
for
certain
share
classes.
(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)
The
Fund
commenced
operations
on
October
18,
2021.
(d)
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.
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(10/01/22)
Ending
Account
Value
(03/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(10/01/22)
Ending
Account
Value
(03/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
1,030.10‌
$
1.92‌
$
1,000.00‌
$
1,023.04‌
$
1.92‌
0.38‌%
Investor
A
................................
1,000.00‌
1,028.80‌
3.24‌
1,000.00‌
1,021.74‌
3.23‌
0.64‌
Class
K
..................................
1,000.00‌
1,030.30‌
1.77‌
1,000.00‌
1,023.19‌
1.77‌
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
182/365
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
36.6‌
%
U.S.
Treasury
Obligations
.............................
29.7‌
Asset-Backed
Securities
..............................
16.4‌
U.S.
Government
Sponsored
Agency
Securities
..............
9.7‌
Non-Agency
Mortgage-Backed
Securities
..................
6.0‌
Foreign
Agency
Obligations
............................
1.6‌
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
AAA/
Aaa
(c)
......................................
60.7‌
%
AA/Aa
.........................................
0.6‌
A
............................................
16.1‌
BBB/Baa
.......................................
14.5‌
BB/Ba
.........................................
3.8‌
B
............................................
2.2‌
CCC/
Caa
.......................................
0.0‌
(d)
NR
...........................................
2.1‌
(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
March
31,
2023
2023
BlackRock
Semi-Annual
Report
to
Shareholders
8
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
six
month
period
ended
March
31,
2023,
all
of
the
Fund's
share
classes
outperformed
its
benchmark,
the
Bloomberg
U.S.
Aggregate
Bond
Index.
What
factors
influenced
performance?
The
Fund’s
duration
and
yield
curve
positioning
contributed
to
performance,
as
did
its
allocation
to
structured
securities
and
U.S.
investment-grade
corporate
bonds.
(Duration
is
a
measure
of
interest
rate
sensitivity.)
The
Fund’s
macro
strategies
were
the
largest
detractor
from
performance.
The
Fund’s
cash
position
did
not
have
a
material
impact
on
performance.
Describe
recent
portfolio
activity.
In
the
fourth
quarter
of
2022,
the
investment
adviser
identified
a
number
of
attractive
opportunities
across
the
fixed-income
market
following
the
Fed’s
fastest
rate-hiking
cycle
in
decades.
The
investment
adviser
sought
to
take
advantage
of
these
circumstances
by
adding
to
the
Fund’s
positions
in
higher-quality,
short-dated
assets
that
offered
attractive
yields.
It
maintained
an
active
positioning
within
investment-grade
corporate
bonds
in
an
effort
to
capitalize
on
the
increased
dispersion
in
the
sector,
and
it
increased
the
Fund’s
overweight
in
agency
mortgage-backed
securities
(“MBS”).
At
the
same
time,
it
kept
the
allocation
to
high
yield
bonds
near
historically
low
levels.
The
Fund’s
overall
duration
was
slightly
below
the
benchmark
at
the
end
of
2022,
with
an
overweight
in
U.S.
short-term
bonds
offset
by
a
short
position
in
seven-
to
10-year
bonds
in
Japan.
The
investment
adviser
continued
to
reduce
duration
during
the
second
half
of
the
reporting
period.
The
investment
adviser
rotated
the
Fund’s
holdings
in
securitized
assets
during
the
first
quarter
of
2023,
moving
up
in
quality
by
buying
higher-rated
commercial
mortgage-
backed
securities
and
asset-backed
securities.
In
both
areas,
it
sought
issues
with
structural
protections.
The
investment
adviser
maintained
a
defensive
posture
in
the
emerging
markets
given
concerns
about
tighter
global
central
bank
policies,
weaker
economic
growth
and
reduced
liquidity
in
the
market.
It
also
maintained
a
cautious
approach
to
lower-quality
bonds,
with
a
preference
for
high
yield
issues
over
bank
loans.
The
investment
adviser
slightly
trimmed
the
Fund’s
position
in
investment-grade
corporate
bonds
due
to
unattractive
yield
spreads,
and
it
further
added
to
agency
MBS.
Describe
portfolio
positioning
at
period
end.
The
Fund’s
duration
was
below
that
of
the
index.
It
was
overweight
in
investment-grade
corporate
bonds,
with
a
focus
on
short-dated
securities,
and
it
retained
a
sizable
allocation
to
high-quality
securitized
assets.
The
Fund
was
underweight
in
high
yield
bonds
and
the
emerging
markets.
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
March
31,
2023
(continued)
9
Fund
Summary
BlackRock
Sustainable
Total
Return
Fund
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.
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Portfolio
Information
Average
Annual
Total
Returns
(a)(b)
1
Year
Since
Inception
(c)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
......................................
4.06‌%
3.17‌%
5.65‌%
(5.19‌)%
N/A‌
(8.02‌)%
N/A‌
Investor
A
.......................................
3.64‌
2.82‌
5.52‌
(5.44‌)
(9.23‌)%
(8.28‌)
(10.83‌)%
Class
K
........................................
4.11‌
3.23‌
5.67‌
(5.15‌)
N/A‌
(7.99‌)
N/A‌
Bloomberg
U.S.
Aggregate
Bond
Index
(d)
................
—‌
—‌
4.89‌
(4.78‌)
N/A‌
(7.19‌)
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees,
and
how
performance
was
calculated
for
certain
share
classes.
(b)
The
Fund
typically
invests
more
than
90%
of
its
assets
in
a
diversified
portfolio
of
fixed-income
securities.
(c)
The
Fund
commenced
operations
on
October
18,
2021.
(d)
A
broad-based
flagship
benchmark
that
measures
the
investment
grade,
U.S.
dollar-denominated,
fixed-rate
taxable
bond
market.
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(10/01/22)
Ending
Account
Value
(03/31/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(10/01/22)
Ending
Account
Value
(03/31/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
1,056.50‌
$
2.15‌
$
1,000.00‌
$
1,022.84‌
$
2.12‌
0.42‌%
Investor
A
................................
1,000.00‌
1,055.20‌
3.48‌
1,000.00‌
1,021.54‌
3.43‌
0.68‌
Class
K
..................................
1,000.00‌
1,056.70‌
2.00‌
1,000.00‌
1,022.99‌
1.97‌
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
182/365
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
U.S.
Government
Sponsored
Agency
Securities
..............
40.6‌
%
Corporate
Bonds
...................................
23.0‌
U.S.
Treasury
Obligations
.............................
20.8‌
Asset-Backed
Securities
..............................
10.5‌
Non-Agency
Mortgage-Backed
Securities
..................
3.8‌
Foreign
Government
Obligations
........................
0.8‌
Municipal
Bonds
...................................
0.5‌
Preferred
Securities
.................................
0.0‌
(b)
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(c)
Percent
of
Total
Investments
(a)
AAA/Aaa
(d)
......................................
66.3‌
%
AA/Aa
.........................................
2.3‌
A
............................................
10.3‌
BBB/Baa
.......................................
14.7‌
BB/Ba
.........................................
0.1‌
B
............................................
0.1‌
CC/Ca
........................................
0.3‌
NR
...........................................
5.9‌
(a)
Excludes
short-term
securities,
options
purchased,
options
written
and
TBA
sale
commitments.
(b)
Represents
less
than
0.1%
of
the
Fund's
total
investments.
(c)
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.
(d)
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
2023
BlackRock
Semi-Annual
Report
to
Shareholders
10
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
11
Disclosure
of
Expenses
/
Derivative
Financial
Instruments
Shareholders
of
each
Fund
may
incur
the
following
charges:
(a)
transactional
expenses,
such
as
sales
charges;
and
(b)
operating
expenses,
including
investment
advisory
fees,
administration
fees, service
and
distribution
fees,
including
12b-1
fees,
acquired
fund
fees
and
expenses, and
other
fund
expenses.
The
expense
examples 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.
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
12
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
March
31,
2023
Security
Shares
Shares
Value
Common
Stocks
Chemicals
—
0.1%
Element
Solutions,
Inc.
(a)
..............
2,144
$
41,400
Financial
Services
—
0.0%
Block,
Inc.,
Class
A
(b)
................
259
17,780
Ground
Transportation
—
0.1%
Uber
Technologies,
Inc.
(b)
.............
939
29,766
IT
Services
—
0.0%
Twilio,
Inc.,
Class
A
(b)
................
87
5,797
Total
Common
Stocks
—
0.2%
(Cost:
$135,166)
................................
94,743
Par
(000)
Par
(000)
Corporate
Bonds
Aerospace
&
Defense
—
3.6%
(c)
Bombardier,
Inc.
7.13%,
06/15/26
.................
USD
175
175,630
7.88%,
04/15/27
.................
124
125,529
6.00%,
02/15/28
.................
59
57,452
7.50%,
02/01/29
.................
92
93,983
TransDigm,
Inc.
6.25%,
03/15/26
.................
454
454,413
6.75%,
08/15/28
.................
472
476,720
Triumph
Group,
Inc.,
9.00%,
03/15/28
....
173
173,182
1,556,909
Automobile
Components
—
2.1%
Clarios
Global
LP
(c)
6.75%,
05/15/25
.................
100
101,065
6.25%,
05/15/26
.................
149
148,627
8.50%,
05/15/27
.................
525
526,969
Goodyear
Tire
&
Rubber
Co.
(The)
9.50%,
05/31/25
.................
123
126,394
5.63%,
04/30/33
.................
2
1,730
904,785
Automobiles
—
0.7%
Ford
Motor
Co.
3.25%,
02/12/32
.................
309
242,861
6.10%,
08/19/32
.................
53
51,360
294,221
Broadline
Retail
—
0.5%
(c)
ANGI
Group
LLC,
3.88%,
08/15/28
......
49
37,227
Go
Daddy
Operating
Co.
LLC,
3.50%,
03/01/29
77
66,577
Match
Group
Holdings
II
LLC
4.63%,
06/01/28
.................
47
43,650
3.63%,
10/01/31
.................
17
13,834
NMG
Holding
Co.,
Inc.,
7.13%,
04/01/26
...
44
41,310
202,598
Building
Products
—
0.7%
(c)
Advanced
Drainage
Systems,
Inc.
5.00%,
09/30/27
.................
8
7,602
6.38%,
06/15/30
.................
174
170,492
Camelot
Return
Merger
Sub,
Inc.,
8.75%,
08/01/28
.....................
48
44,445
Masonite
International
Corp.,
5.38%,
02/01/28
3
2,865
Standard
Industries,
Inc.
5.00%,
02/15/27
.................
5
4,749
4.75%,
01/15/28
.................
5
4,671
4.38%,
07/15/30
.................
58
50,460
Security
Par
(000)
Par
(000)
Value
Building
Products
(continued)
3.38%,
01/15/31
.................
USD
43
$
34,558
319,842
Capital
Markets
—
0.4%
AG
TTMT
Escrow
Issuer
LLC,
8.63%,
09/30/27
(c)
....................
33
33,215
Compass
Group
Diversified
Holdings
LLC,
5.25%,
04/15/29
(c)
...............
47
41,379
MSCI,
Inc.
(c)
3.63%,
09/01/30
.................
32
27,818
3.25%,
08/15/33
.................
6
4,914
Northern
Trust
Corp.,
6.13%,
11/02/32
....
60
63,967
171,293
Chemicals
—
3.0%
Ashland
LLC,
3.38%,
09/01/31
(c)
........
117
95,639
Avient
Corp.,
7.13%,
08/01/30
(c)
........
36
37,125
Axalta
Coating
Systems
LLC
(c)
4.75%,
06/15/27
.................
150
142,530
3.38%,
02/15/29
.................
350
299,874
Element
Solutions,
Inc.,
3.88%,
09/01/28
(c)
.
258
226,431
HB
Fuller
Co.,
4.00%,
02/15/27
........
47
42,959
Herens
Holdco
SARL,
4.75%,
05/15/28
(c)
..
200
161,000
Kobe
U.S.
Midco
2,
Inc.,
9.25%,
11/01/26
(c)(d)
57
41,040
WR
Grace
Holdings
LLC
(c)
4.88%,
06/15/27
.................
24
23,134
5.63%,
08/15/29
.................
240
203,400
7.38%,
03/01/31
.................
29
29,110
1,302,242
Commercial
Services
&
Supplies
—
3.1%
ADT
Security
Corp.
(The)
(c)
4.13%,
08/01/29
.................
3
2,675
4.88%,
07/15/32
.................
17
14,999
Allied
Universal
Holdco
LLC
(c)
6.63%,
07/15/26
.................
180
172,981
9.75%,
07/15/27
.................
160
142,602
4.63%,
06/01/28
.................
200
169,250
APi
Group
DE,
Inc.
(c)
4.13%,
07/15/29
.................
19
16,303
4.75%,
10/15/29
.................
24
21,116
APX
Group,
Inc.
(c)
6.75%,
02/15/27
.................
26
25,870
5.75%,
07/15/29
.................
80
71,600
Aramark
Services,
Inc.
(c)
5.00%,
04/01/25
.................
9
8,857
5.00%,
02/01/28
.................
117
110,736
Covanta
Holding
Corp.
4.88%,
12/01/29
(c)
................
20
17,795
5.00%,
09/01/30
.................
15
12,903
Garda
World
Security
Corp.
(c)
4.63%,
02/15/27
.................
22
19,748
7.75%,
02/15/28
.................
63
62,093
GFL
Environmental,
Inc.
(c)
4.25%,
06/01/25
.................
3
2,927
3.75%,
08/01/25
.................
5
4,805
5.13%,
12/15/26
.................
43
42,044
4.00%,
08/01/28
.................
4
3,634
3.50%,
09/01/28
.................
6
5,430
4.75%,
06/15/29
.................
88
82,201
4.38%,
08/15/29
.................
16
14,323
Legends
Hospitality
Holding
Co.
LLC,
5.00%,
02/01/26
(c)
....................
41
36,689
Madison
IAQ
LLC,
5.88%,
06/30/29
(c)
.....
95
73,388
Neptune
Bidco
US,
Inc.,
9.29%,
04/15/29
(c)
.
18
16,688
Prime
Security
Services
Borrower
LLC
(c)
5.75%,
04/15/26
.................
92
91,310
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
13
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Commercial
Services
&
Supplies
(continued)
6.25%,
01/15/28
.................
USD
50
$
46,750
Stericycle,
Inc.,
3.88%,
01/15/29
(c)
.......
29
25,317
1,315,034
Communications
Equipment
—
1.1%
CommScope
Technologies
LLC,
6.00%,
06/15/25
(c)
....................
113
106,418
CommScope,
Inc.
(c)
6.00%,
03/01/26
.................
41
39,569
8.25%,
03/01/27
.................
13
10,649
7.13%,
07/01/28
.................
13
9,588
4.75%,
09/01/29
.................
81
67,515
Nokia
OYJ,
6.63%,
05/15/39
..........
96
95,820
Viasat,
Inc.
(c)
5.63%,
09/15/25
.................
59
55,936
5.63%,
04/15/27
.................
25
23,475
Viavi
Solutions,
Inc.,
3.75%,
10/01/29
(c)
...
60
51,310
460,280
Construction
&
Engineering
—
0.2%
(c)
Dycom
Industries,
Inc.,
4.50%,
04/15/29
...
31
27,977
MasTec,
Inc.,
4.50%,
08/15/28
.........
40
36,972
64,949
Consumer
Finance
—
1.8%
Ford
Motor
Credit
Co.
LLC
4.13%,
08/04/25
.................
200
190,253
4.39%,
01/08/26
.................
200
189,750
7.35%,
03/06/30
.................
200
205,500
OneMain
Finance
Corp.
6.88%,
03/15/25
.................
10
9,690
7.13%,
03/15/26
.................
53
50,949
6.63%,
01/15/28
.................
20
18,336
4.00%,
09/15/30
.................
95
71,250
SLM
Corp.,
3.13%,
11/02/26
..........
41
34,850
770,578
Consumer
Staples
Distribution
&
Retail
—
0.9%
(c)
Albertsons
Cos.,
Inc.
3.25%,
03/15/26
.................
49
46,109
4.63%,
01/15/27
.................
8
7,737
6.50%,
02/15/28
.................
44
44,110
3.50%,
03/15/29
.................
5
4,350
4.88%,
02/15/30
.................
103
96,138
United
Natural
Foods,
Inc.,
6.75%,
10/15/28
51
47,400
US
Foods,
Inc.
6.25%,
04/15/25
.................
78
78,703
4.75%,
02/15/29
.................
47
43,416
4.63%,
06/01/30
.................
5
4,511
372,474
Containers
&
Packaging
—
4.6%
ARD
Finance
SA,
6.50%,
06/30/27
(c)
.....
200
152,980
Ardagh
Metal
Packaging
Finance
USA
LLC
(c)
6.00%,
06/15/27
.................
200
198,205
4.00%,
09/01/29
.................
200
156,500
Ball
Corp.,
3.13%,
09/15/31
..........
189
156,397
Clydesdale
Acquisition
Holdings,
Inc.
(c)
6.63%,
04/15/29
.................
118
113,575
8.75%,
04/15/30
.................
76
69,064
Crown
Americas
LLC,
4.25%,
09/30/26
...
124
118,875
Graphic
Packaging
International
LLC,
3.50%,
03/15/28
(c)
....................
98
89,690
Mauser
Packaging
Solutions
Holding
Co.
(c)
7.88%,
08/15/26
.................
577
577,000
9.25%,
04/15/27
.................
6
5,544
Sealed
Air
Corp.
(c)
4.00%,
12/01/27
.................
70
65,324
Security
Par
(000)
Par
(000)
Value
Containers
&
Packaging
(continued)
6.13%,
02/01/28
.................
USD
44
$
44,491
Trivium
Packaging
Finance
BV,
8.50%,
08/15/27
(c)(e)
...................
228
207,480
1,955,125
Distributors
—
0.2%
(c)
American
Builders
&
Contractors
Supply
Co.,
Inc.,
3.88%,
11/15/29
.............
20
17,077
Resideo
Funding,
Inc.,
4.00%,
09/01/29
...
8
6,652
Ritchie
Bros
Holdings,
Inc.
6.75%,
03/15/28
.................
18
18,537
7.75%,
03/15/31
.................
59
61,833
104,099
Diversified
Consumer
Services
—
0.4%
Sotheby's,
5.88%,
06/01/29
(c)
..........
200
165,864
Diversified
REITs
—
0.5%
(c)
HAT
Holdings
I
LLC,
3.38%,
06/15/26
....
106
91,955
Iron
Mountain
Information
Management
Services,
Inc.,
5.00%,
07/15/32
.......
46
39,502
Uniti
Group
LP,
10.50%,
02/15/28
.......
104
100,880
232,337
Diversified
Telecommunication
Services
—
6.4%
Altice
France
SA,
5.13%,
07/15/29
(c)
.....
200
150,500
CCO
Holdings
LLC
(c)
5.00%,
02/01/28
.................
73
67,342
6.38%,
09/01/29
.................
168
160,440
4.75%,
03/01/30
.................
33
28,591
4.25%,
02/01/31
.................
125
102,208
7.38%,
03/01/31
.................
14
13,781
4.75%,
02/01/32
.................
78
65,509
4.50%,
06/01/33
.................
25
20,126
4.25%,
01/15/34
.................
92
71,955
Frontier
Communications
Holdings
LLC
(c)
5.88%,
10/15/27
.................
65
59,091
5.00%,
05/01/28
.................
38
32,975
8.75%,
05/15/30
.................
179
178,286
Iliad
Holding
SASU
(c)
6.50%,
10/15/26
.................
200
190,604
7.00%,
10/15/28
.................
294
278,944
Level
3
Financing,
Inc.
(c)
3.40%,
03/01/27
.................
59
46,666
4.63%,
09/15/27
.................
32
19,240
4.25%,
07/01/28
.................
159
89,708
3.63%,
01/15/29
.................
21
11,611
3.75%,
07/15/29
.................
59
31,456
3.88%,
11/15/29
.................
108
78,163
Lumen
Technologies,
Inc.
(c)
4.00%,
02/15/27
.................
100
66,000
4.50%,
01/15/29
.................
16
7,160
Sprint
Capital
Corp.
6.88%,
11/15/28
.................
234
251,440
8.75%,
03/15/32
.................
197
239,848
Telecom
Italia
Capital
SA
6.38%,
11/15/33
.................
60
54,325
6.00%,
09/30/34
.................
71
60,883
Zayo
Group
Holdings,
Inc.
(c)
4.00%,
03/01/27
.................
273
207,480
6.13%,
03/01/28
.................
265
161,173
2,745,505
Electric
Utilities
—
2.3%
NextEra
Energy
Operating
Partners
LP,
4.25%,
09/15/24
(c)
....................
233
223,389
NRG
Energy,
Inc.
5.75%,
01/15/28
.................
8
7,845
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
14
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Electric
Utilities
(continued)
(5-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
5.92%),
10.25%
(c)(d)(f)
..................
USD
101
$
96,517
5.25%,
06/15/29
(c)
................
3
2,785
3.88%,
02/15/32
(c)
................
17
13,600
7.00%,
03/15/33
(c)
................
45
46,616
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
(c)
....................
674
616,605
1,007,357
Electrical
Equipment
—
0.2%
Vertiv
Group
Corp.,
4.13%,
11/15/28
(c)
....
100
88,235
Electronic
Equipment,
Instruments
&
Components
—
0.3%
Sensata
Technologies,
Inc.,
4.38%,
02/15/30
(c)
160
145,785
Entertainment
—
0.5%
(c)
Lions
Gate
Capital
Holdings
LLC,
5.50%,
04/15/29
.....................
48
31,560
Live
Nation
Entertainment,
Inc.
5.63%,
03/15/26
.................
4
3,870
6.50%,
05/15/27
.................
107
108,150
4.75%,
10/15/27
.................
46
42,550
3.75%,
01/15/28
.................
37
33,115
219,245
Financial
Services
—
2.3%
Block,
Inc.
2.75%,
06/01/26
.................
52
47,412
3.50%,
06/01/31
.................
309
253,766
Enact
Holdings,
Inc.,
6.50%,
08/15/25
(c)
...
65
63,375
MGIC
Investment
Corp.,
5.25%,
08/15/28
..
92
87,446
Nationstar
Mortgage
Holdings,
Inc.
(c)
6.00%,
01/15/27
.................
27
24,503
5.75%,
11/15/31
.................
26
20,167
Rocket
Mortgage
LLC,
2.88%,
10/15/26
(c)
..
98
87,710
Sabre
GLBL,
Inc.
(c)
9.25%,
04/15/25
.................
32
30,144
7.38%,
09/01/25
.................
72
64,331
11.25%,
12/15/27
................
25
23,296
Shift4
Payments
LLC,
4.63%,
11/01/26
(c)
...
80
75,200
Verscend
Escrow
Corp.,
9.75%,
08/15/26
(c)
.
208
208,000
985,350
Food
Products
—
1.8%
(c)
Chobani
LLC
7.50%,
04/15/25
.................
81
78,977
4.63%,
11/15/28
.................
173
157,646
Darling
Ingredients,
Inc.,
6.00%,
06/15/30
..
162
161,449
Lamb
Weston
Holdings,
Inc.
4.88%,
05/15/28
.................
180
174,591
4.13%,
01/31/30
.................
131
119,865
4.38%,
01/31/32
.................
96
87,063
779,591
Gas
Utilities
—
0.0%
Suburban
Propane
Partners
LP,
5.00%,
06/01/31
(c)
....................
16
13,980
Ground
Transportation
—
1.4%
(c)
Hertz
Corp.
(The)
4.63%,
12/01/26
.................
30
27,165
5.00%,
12/01/29
.................
24
19,877
NESCO
Holdings
II,
Inc.,
5.50%,
04/15/29
..
48
43,425
Uber
Technologies,
Inc.
8.00%,
11/01/26
.................
14
14,353
7.50%,
09/15/27
.................
146
150,542
6.25%,
01/15/28
.................
98
97,755
4.50%,
08/15/29
.................
180
164,025
Security
Par
(000)
Par
(000)
Value
Ground
Transportation
(continued)
Williams
Scotsman
International,
Inc.,
4.63%,
08/15/28
.....................
USD
76
$
69,136
XPO
Escrow
Sub
LLC,
7.50%,
11/15/27
...
21
21,840
608,118
Health
Care
Equipment
&
Supplies
—
1.9%
Avantor
Funding,
Inc.
(c)
4.63%,
07/15/28
.................
131
124,122
3.88%,
11/01/29
.................
119
106,505
Embecta
Corp.,
6.75%,
02/15/30
(c)
......
19
17,290
Garden
Spinco
Corp.,
8.63%,
07/20/30
(c)
...
46
49,147
Hologic,
Inc.,
3.25%,
02/15/29
(c)
........
145
129,002
Medline
Borrower
LP
(c)
3.88%,
04/01/29
.................
20
17,350
5.25%,
10/01/29
.................
220
190,875
Teleflex,
Inc.
4.63%,
11/15/27
.................
3
2,930
4.25%,
06/01/28
(c)
................
183
174,018
811,239
Health
Care
Providers
&
Services
—
3.7%
Acadia
Healthcare
Co.,
Inc.
(c)
5.50%,
07/01/28
.................
26
25,188
5.00%,
04/15/29
.................
5
4,700
AdaptHealth
LLC,
6.13%,
08/01/28
(c)
.....
45
41,317
AHP
Health
Partners,
Inc.,
5.75%,
07/15/29
(c)
115
96,600
Cano
Health
LLC,
6.25%,
10/01/28
(c)
.....
17
9,307
Centene
Corp.
2.45%,
07/15/28
.................
19
16,530
3.00%,
10/15/30
.................
191
160,837
2.50%,
03/01/31
.................
47
38,061
2.63%,
08/01/31
.................
25
20,258
Community
Health
Systems,
Inc.
(c)
6.00%,
01/15/29
.................
142
120,115
5.25%,
05/15/30
.................
102
80,014
4.75%,
02/15/31
.................
49
36,175
Encompass
Health
Corp.
4.50%,
02/01/28
.................
109
101,598
4.75%,
02/01/30
.................
5
4,546
4.63%,
04/01/31
.................
62
54,160
HCA,
Inc.,
4.63%,
03/15/52
(c)
..........
41
34,042
HealthEquity,
Inc.,
4.50%,
10/01/29
(c)
.....
96
85,293
Legacy
LifePoint
Health
LLC
(c)
6.75%,
04/15/25
.................
13
12,337
4.38%,
02/15/27
.................
29
23,718
ModivCare,
Inc.,
5.88%,
11/15/25
(c)
......
19
18,216
Molina
Healthcare,
Inc.
(c)
4.38%,
06/15/28
.................
30
27,909
3.88%,
11/15/30
.................
10
8,725
3.88%,
05/15/32
.................
8
6,723
Option
Care
Health,
Inc.,
4.38%,
10/31/29
(c)
.
56
49,453
Pediatrix
Medical
Group,
Inc.,
5.38%,
02/15/30
(c)
....................
118
106,811
Surgery
Center
Holdings,
Inc.
(c)
6.75%,
07/01/25
.................
55
54,410
10.00%,
04/15/27
................
76
77,490
Tenet
Healthcare
Corp.
4.88%,
01/01/26
.................
67
65,684
6.25%,
02/01/27
.................
25
24,585
5.13%,
11/01/27
.................
29
27,841
6.13%,
10/01/28
.................
35
33,545
4.25%,
06/01/29
.................
20
18,094
6.13%,
06/15/30
(c)
................
114
112,461
1,596,743
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
15
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
—
5.8%
1011778
BC
ULC
(c)
3.88%,
01/15/28
.................
USD
26
$
24,180
4.38%,
01/15/28
.................
82
75,698
4.00%,
10/15/30
.................
14
12,005
Boyne
USA,
Inc.,
4.75%,
05/15/29
(c)
.....
110
98,205
Caesars
Entertainment,
Inc.
(c)
6.25%,
07/01/25
.................
183
183,009
8.13%,
07/01/27
.................
241
245,820
4.63%,
10/15/29
.................
159
139,045
7.00%,
02/15/30
.................
328
333,740
Caesars
Resort
Collection
LLC,
5.75%,
07/01/25
(c)
....................
92
92,020
CDI
Escrow
Issuer,
Inc.,
5.75%,
04/01/30
(c)
.
148
142,944
Cedar
Fair
LP,
5.50%,
05/01/25
(c)
.......
95
94,940
Churchill
Downs,
Inc.
(c)
5.50%,
04/01/27
.................
2
1,958
4.75%,
01/15/28
.................
22
20,602
Fertitta
Entertainment
LLC
(c)
4.63%,
01/15/29
.................
23
20,187
6.75%,
01/15/30
.................
7
5,759
Hilton
Domestic
Operating
Co.,
Inc.
5.75%,
05/01/28
(c)
................
57
57,000
3.75%,
05/01/29
(c)
................
66
59,070
4.88%,
01/15/30
.................
105
100,575
4.00%,
05/01/31
(c)
................
42
36,779
3.63%,
02/15/32
(c)
................
18
15,188
MajorDrive
Holdings
IV
LLC,
6.38%,
06/01/29
(c)
67
49,609
Merlin
Entertainments
Ltd.,
5.75%,
06/15/26
(c)
200
189,695
MGM
Resorts
International,
5.75%,
06/15/25
90
89,783
Midwest
Gaming
Borrower
LLC,
4.88%,
05/01/29
(c)
....................
53
46,075
Scientific
Games
International,
Inc.,
7.25%,
11/15/29
(c)
....................
44
44,085
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
(c)
33
33,341
Vail
Resorts,
Inc.,
6.25%,
05/15/25
(c)
.....
93
93,218
Wyndham
Hotels
&
Resorts,
Inc.,
4.38%,
08/15/28
(c)
....................
71
65,408
Wynn
Resorts
Finance
LLC,
5.13%,
10/01/29
(c)
65
59,043
Yum!
Brands,
Inc.,
4.75%,
01/15/30
(c)
.....
85
81,208
2,510,189
Household
Durables
—
0.8%
Ashton
Woods
USA
LLC,
4.63%,
08/01/29
(c)
25
20,250
Brookfield
Residential
Properties,
Inc.,
5.00%,
06/15/29
(c)
....................
97
74,205
CD&R
Smokey
Buyer,
Inc.,
6.75%,
07/15/25
(c)
68
58,310
KB
Home,
7.25%,
07/15/30
...........
15
15,214
SWF
Escrow
Issuer
Corp.,
6.50%,
10/01/29
(c)
71
43,665
Taylor
Morrison
Communities,
Inc.,
5.88%,
06/15/27
(c)
....................
68
66,710
Tempur
Sealy
International,
Inc.
(c)
4.00%,
04/15/29
.................
17
14,956
3.88%,
10/15/31
.................
31
25,885
TRI
Pointe
Homes,
Inc.,
5.25%,
06/01/27
..
22
20,900
340,095
Household
Products
—
0.0%
Spectrum
Brands,
Inc.,
5.00%,
10/01/29
(c)
..
18
15,622
Independent
Power
and
Renewable
Electricity
Producers
—
2.4%
Clearway
Energy
Operating
LLC
(c)
4.75%,
03/15/28
.................
730
697,150
3.75%,
01/15/32
.................
86
71,473
TransAlta
Corp.,
7.75%,
11/15/29
.......
238
250,111
1,018,734
Security
Par
(000)
Par
(000)
Value
Insurance
—
3.5%
(c)
Alliant
Holdings
Intermediate
LLC
4.25%,
10/15/27
.................
USD
148
$
132,562
6.75%,
10/15/27
.................
317
294,017
6.75%,
04/15/28
.................
136
134,470
5.88%,
11/01/29
.................
282
237,809
AmWINS
Group,
Inc.,
4.88%,
06/30/29
....
21
18,585
GTCR
AP
Finance,
Inc.,
8.00%,
05/15/27
..
24
22,903
HUB
International
Ltd.,
7.00%,
05/01/26
...
113
111,057
Jones
Deslauriers
Insurance
Management,
Inc.
8.50%,
03/15/30
.................
62
64,261
10.50%,
12/15/30
................
61
61,440
NFP
Corp.
4.88%,
08/15/28
.................
120
108,240
6.88%,
08/15/28
.................
294
252,293
7.50%,
10/01/30
.................
24
23,190
Ryan
Specialty
Group
LLC,
4.38%,
02/01/30
34
29,729
1,490,556
IT
Services
—
0.8%
Ahead
DB
Holdings
LLC,
6.63%,
05/01/28
(c)
.
57
47,204
Booz
Allen
Hamilton,
Inc.,
4.00%,
07/01/29
(c)
93
83,925
Gartner,
Inc.
(c)
4.50%,
07/01/28
.................
51
48,409
3.63%,
06/15/29
.................
23
20,523
Northwest
Fiber
LLC
(c)
4.75%,
04/30/27
.................
54
46,133
6.00%,
02/15/28
.................
12
8,879
Presidio
Holdings,
Inc.,
4.88%,
02/01/27
(c)
..
8
7,645
Twilio,
Inc.
3.63%,
03/15/29
.................
18
15,525
3.88%,
03/15/31
.................
95
80,610
358,853
Leisure
Products
—
0.2%
Mattel,
Inc.
6.20%,
10/01/40
.................
53
47,734
5.45%,
11/01/41
.................
62
52,204
99,938
Life
Sciences
Tools
&
Services
—
0.1%
Charles
River
Laboratories
International,
Inc.
(c)
4.25%,
05/01/28
.................
32
29,948
4.00%,
03/15/31
.................
14
12,250
42,198
Machinery
—
0.7%
Mueller
Water
Products,
Inc.,
4.00%,
06/15/29
(c)
43
38,411
Terex
Corp.,
5.00%,
05/15/29
(c)
........
63
58,622
Titan
International,
Inc.,
7.00%,
04/30/28
..
23
20,723
TK
Elevator
US
Newco,
Inc.,
5.25%,
07/15/27
(c)
200
188,820
306,576
Media
—
4.6%
Altice
Financing
SA,
5.75%,
08/15/29
(c)
....
400
318,000
AMC
Networks,
Inc.,
4.25%,
02/15/29
....
39
23,978
Cable
One,
Inc.
0.00%,
03/15/26
(g)(h)
...............
22
17,358
1.13%,
03/15/28
(g)
................
147
107,457
4.00%,
11/15/30
(c)
................
218
177,446
Charter
Communications
Operating
LLC,
5.50%,
04/01/63
................
9
7,303
Clear
Channel
Outdoor
Holdings,
Inc.
(c)
5.13%,
08/15/27
.................
163
146,292
7.75%,
04/15/28
.................
133
99,750
7.50%,
06/01/29
.................
121
85,995
CSC
Holdings
LLC
5.25%,
06/01/24
.................
5
4,825
4.13%,
12/01/30
(c)
................
200
143,638
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
16
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Media
(continued)
DirecTV
Financing
LLC,
5.88%,
08/15/27
(c)
.
USD
42
$
38,040
GCI
LLC,
4.75%,
10/15/28
(c)
..........
8
6,902
Outfront
Media
Capital
LLC
(c)
5.00%,
08/15/27
.................
111
99,992
4.25%,
01/15/29
.................
3
2,490
4.63%,
03/15/30
.................
23
19,181
Radiate
Holdco
LLC,
6.50%,
09/15/28
(c)
...
156
63,960
Sinclair
Television
Group,
Inc.,
4.13%,
12/01/30
(c)
....................
65
52,406
Sirius
XM
Radio,
Inc.
(c)
3.13%,
09/01/26
.................
92
82,984
5.00%,
08/01/27
.................
46
43,066
TEGNA,
Inc.,
4.75%,
03/15/26
(c)
........
5
4,743
Telenet
Finance
Luxembourg
Notes
SARL,
5.50%,
03/01/28
(c)
...............
200
184,000
Univision
Communications,
Inc.
(c)
6.63%,
06/01/27
.................
36
34,135
7.38%,
06/30/30
.................
48
45,381
Ziggo
Bond
Co.
BV,
5.13%,
02/28/30
(c)
....
200
160,811
1,970,133
Metals
&
Mining
—
4.3%
(c)
Big
River
Steel
LLC,
6.63%,
01/31/29
....
727
721,446
Constellium
SE
5.63%,
06/15/28
.................
250
236,006
3.75%,
04/15/29
.................
250
216,553
Novelis
Corp.
3.25%,
11/15/26
.................
390
356,407
4.75%,
01/30/30
.................
14
12,863
3.88%,
08/15/31
.................
346
291,415
1,834,690
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.0%
(c)
Ladder
Capital
Finance
Holdings
LLLP,
5.25%,
10/01/25
.....................
6
5,279
Starwood
Property
Trust,
Inc.,
4.38%,
01/15/27
18
14,876
20,155
Oil,
Gas
&
Consumable
Fuels
—
2.4%
EnLink
Midstream
Partners
LP
4.85%,
07/15/26
.................
23
22,137
5.60%,
04/01/44
.................
52
42,441
ITT
Holdings
LLC,
6.50%,
08/01/29
(c)
.....
98
82,743
New
Fortress
Energy,
Inc.
(c)
6.75%,
09/15/25
.................
113
108,763
6.50%,
09/30/26
.................
45
41,400
Occidental
Petroleum
Corp.
5.88%,
09/01/25
.................
2
2,016
5.55%,
03/15/26
.................
228
229,710
8.88%,
07/15/30
.................
25
29,079
6.63%,
09/01/30
.................
85
89,519
6.13%,
01/01/31
.................
4
4,150
7.50%,
05/01/31
.................
1
1,103
6.45%,
09/15/36
.................
8
8,411
6.20%,
03/15/40
.................
378
380,041
6.60%,
03/15/46
.................
2
2,103
1,043,616
Passenger
Airlines
—
2.3%
(c)
American
Airlines,
Inc.
11.75%,
07/15/25
................
229
250,535
5.50%,
04/20/26
.................
15
14,854
7.25%,
02/15/28
.................
17
16,533
5.75%,
04/20/29
.................
232
222,884
Mileage
Plus
Holdings
LLC,
6.50%,
06/20/27
137
136,410
United
Airlines,
Inc.
4.38%,
04/15/26
.................
187
178,905
Security
Par
(000)
Par
(000)
Value
Passenger
Airlines
(continued)
4.63%,
04/15/29
.................
USD
203
$
183,614
1,003,735
Personal
Care
Products
—
0.1%
Prestige
Brands,
Inc.,
3.75%,
04/01/31
(c)
...
25
21,190
Pharmaceuticals
—
0.7%
(c)
Catalent
Pharma
Solutions,
Inc.
3.13%,
02/15/29
.................
80
70,329
3.50%,
04/01/30
.................
39
34,274
Organon
&
Co.,
5.13%,
04/30/31
.......
200
177,528
282,131
Professional
Services
—
0.7%
(c)
AMN
Healthcare,
Inc.
4.63%,
10/01/27
.................
25
23,173
4.00%,
04/15/29
.................
73
64,605
CoreLogic,
Inc.,
4.50%,
05/01/28
.......
48
36,420
Dun
&
Bradstreet
Corp.
(The),
5.00%,
12/15/29
100
86,587
Korn
Ferry,
4.63%,
12/15/27
..........
87
82,215
293,000
Real
Estate
Management
&
Development
—
0.7%
(c)
Cushman
&
Wakefield
US
Borrower
LLC,
6.75%,
05/15/28
................
154
137,872
Howard
Hughes
Corp.
(The)
5.38%,
08/01/28
.................
65
59,190
4.38%,
02/01/31
.................
44
35,420
Realogy
Group
LLC,
5.75%,
01/15/29
....
93
69,607
302,089
Retail
REITs
—
0.1%
Brookfield
Property
REIT,
Inc.,
4.50%,
04/01/27
(c)
....................
43
34,507
Semiconductors
&
Semiconductor
Equipment
—
0.9%
(c)
Entegris
Escrow
Corp.,
4.75%,
04/15/29
...
278
262,822
Entegris,
Inc.
4.38%,
04/15/28
.................
44
39,751
3.63%,
05/01/29
.................
28
24,168
Synaptics,
Inc.,
4.00%,
06/15/29
........
68
58,557
385,298
Software
—
6.6%
Alteryx,
Inc.,
8.75%,
03/15/28
(c)
........
51
51,330
AthenaHealth
Group,
Inc.,
6.50%,
02/15/30
(c)
219
177,578
Black
Knight
InfoServ
LLC,
3.63%,
09/01/28
(c)
96
87,240
Boxer
Parent
Co.,
Inc.
(c)
7.13%,
10/02/25
.................
53
52,747
9.13%,
03/01/26
.................
66
64,002
Camelot
Finance
SA,
4.50%,
11/01/26
(c)
...
31
29,295
Central
Parent,
Inc.,
7.25%,
06/15/29
(c)
....
106
104,185
Clarivate
Science
Holdings
Corp.
(c)
3.88%,
07/01/28
.................
361
322,181
4.88%,
07/01/29
.................
196
177,257
Cloud
Software
Group
Holdings,
Inc.,
6.50%,
03/31/29
(c)
....................
617
545,801
Consensus
Cloud
Solutions,
Inc.
(c)
6.00%,
10/15/26
.................
17
14,769
6.50%,
10/15/28
.................
15
12,439
Crowdstrike
Holdings,
Inc.,
3.00%,
02/15/29
5
4,364
Elastic
NV,
4.13%,
07/15/29
(c)
.........
151
128,916
Fair
Isaac
Corp.,
4.00%,
06/15/28
(c)
......
119
110,372
Gen
Digital,
Inc.,
6.75%,
09/30/27
(c)
......
68
68,354
McAfee
Corp.,
7.38%,
02/15/30
(c)
.......
185
155,121
MicroStrategy,
Inc.,
6.13%,
06/15/28
(c)
....
65
57,688
NCR
Corp.,
6.13%,
09/01/29
(c)
.........
45
44,385
Open
Text
Corp.,
6.90%,
12/01/27
(c)
......
181
186,720
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
17
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Software
(continued)
PTC,
Inc.
(c)
3.63%,
02/15/25
.................
USD
49
$
47,257
4.00%,
02/15/28
.................
33
30,837
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
(c)
102
98,970
Veritas
US,
Inc.,
7.50%,
09/01/25
(c)
......
75
56,457
ZoomInfo
Technologies
LLC,
3.88%,
02/01/29
(c)
244
211,237
2,839,502
Specialized
REITs
—
0.7%
Iron
Mountain,
Inc.
(c)
5.00%,
07/15/28
.................
5
4,653
5.25%,
07/15/30
.................
6
5,410
5.63%,
07/15/32
.................
33
30,147
SBA
Communications
Corp.
3.88%,
02/15/27
.................
175
165,206
3.13%,
02/01/29
.................
95
82,644
288,060
Specialty
Retail
—
1.8%
(c)
Arko
Corp.,
5.13%,
11/15/29
..........
49
40,557
Asbury
Automotive
Group,
Inc.,
5.00%,
02/15/32
.....................
40
35,040
GYP
Holdings
III
Corp.,
4.63%,
05/01/29
...
117
100,035
Lithia
Motors,
Inc.,
3.88%,
06/01/29
......
43
37,195
PetSmart,
Inc.,
7.75%,
02/15/29
........
250
245,403
Specialty
Building
Products
Holdings
LLC,
6.38%,
09/30/26
................
14
12,866
SRS
Distribution,
Inc.
4.63%,
07/01/28
.................
96
85,257
6.13%,
07/01/29
.................
91
76,778
6.00%,
12/01/29
.................
81
66,879
Staples,
Inc.,
7.50%,
04/15/26
.........
72
63,081
763,091
Textiles,
Apparel
&
Luxury
Goods
—
0.9%
(c)
Crocs,
Inc.
4.25%,
03/15/29
.................
48
42,102
4.13%,
08/15/31
.................
55
45,315
Hanesbrands,
Inc.,
9.00%,
02/15/31
.....
74
75,757
Kontoor
Brands,
Inc.,
4.13%,
11/15/29
....
30
25,746
Levi
Strauss
&
Co.,
3.50%,
03/01/31
.....
132
112,530
William
Carter
Co.
(The),
5.63%,
03/15/27
..
94
91,364
392,814
Trading
Companies
&
Distributors
—
1.9%
(c)
Beacon
Roofing
Supply,
Inc.,
4.13%,
05/15/29
25
22,059
Boise
Cascade
Co.,
4.88%,
07/01/30
.....
61
53,918
Foundation
Building
Materials,
Inc.,
6.00%,
03/01/29
.....................
23
18,230
Herc
Holdings,
Inc.,
5.50%,
07/15/27
.....
78
75,270
Imola
Merger
Corp.,
4.75%,
05/15/29
.....
107
95,721
United
Rentals
North
America,
Inc.,
6.00%,
12/15/29
.....................
307
311,228
WESCO
Distribution,
Inc.,
7.25%,
06/15/28
.
226
232,057
808,483
Wireless
Telecommunication
Services
—
1.3%
(c)
Connect
Finco
SARL,
6.75%,
10/01/26
....
333
313,020
Vmed
O2
UK
Financing
I
plc,
4.75%,
07/15/31
296
253,737
566,757
Total
Corporate
Bonds
—
88.9%
(Cost:
$41,681,095)
..............................
38,225,790
Security
Par
(000)
Par
(000)
Value
Floating
Rate
Loan
Interests
Chemicals
—
0.1%
(d)
Aruba
Investments
Holdings
LLC,
2nd
Lien
Term
Loan,
(1-mo.
LIBOR
USD
at
0.75%
Floor
+
7.75%),
12.59%
,
 11/24/28
.....
USD
12
$
10,829
WR
Grace
Holdings
LLC,
Term
Loan,
(3-mo.
LIBOR
USD
at
0.50%
Floor
+
3.75%),
8.94%
,
 09/22/28
.................
25
25,143
35,972
Commercial
Services
&
Supplies
—
0.2%
PECF
USS
Intermediate
Holding
III
Corp.,
Term
Loan,
(1-mo.
LIBOR
USD
at
0.50%
Floor
+
4.25%),
9.09%
,
 12/15/28
(d)
..........
131
110,072
Containers
&
Packaging
—
0.1%
Mauser
Packaging
Solutions
Holding
Co.,
Term
Loan,
(1-mo.
CME
Term
SOFR
+
4.00%),
8.78%
,
 08/14/26
(d)
................
30
29,711
Diversified
Consumer
Services
—
0.1%
Ascend
Learning
LLC,
2nd
Lien
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
5.75%),
10.66%
,
 12/10/29
(d)
..........
29
24,891
Diversified
Telecommunication
Services
—
1.2%
(d)
Cablevision
Lightpath
LLC,
Term
Loan,
(1-mo.
LIBOR
USD
at
0.50%
Floor
+
3.25%),
7.93%
,
 11/30/27
.................
98
97,278
Frontier
Communications
Holdings
LLC,
Term
Loan
B,
(1-mo.
LIBOR
USD
at
0.75%
Floor
+
3.75%),
8.63%
,
 05/01/28
..........
104
98,239
Radiate
Holdco
LLC,
Term
Loan,
(1-mo.
LIBOR
USD
at
0.75%
Floor
+
3.25%),
8.09%
,
 09/25/26
.................
201
164,109
Zayo
Group
Holdings,
Inc.,
Term
Loan,
(1-mo.
LIBOR
USD
+
3.00%),
7.84%
,
 03/09/27
.
175
142,044
501,670
Financial
Services
—
0.4%
Altice
France
SA,
Term
Loan
B14,
(3-mo.
CME
Term
SOFR
+
5.50%),
10.17%
,
 08/15/28
(d)(i)
187
177,663
Food
Products
—
0.0%
Chobani
LLC,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
1.00%
Floor
+
3.50%),
8.42%
,
 10/25/27
(d)(i)
...............
7
6,486
Health
Care
Equipment
&
Supplies
—
0.0%
Bausch
+
Lomb
Corp.,
Term
Loan,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.25%),
8.46%
,
 05/10/27
(d)
................
3
2,795
Health
Care
Providers
&
Services
—
0.0%
Surgery
Center
Holdings,
Inc.,
Term
Loan,
(1-
mo.
LIBOR
USD
at
0.75%
Floor
+
3.75%),
8.46%
,
 08/31/26
(d)
................
18
17,848
Health
Care
Technology
—
1.6%
(d)
Athenahealth
Group,
Inc.,
Delayed
Draw
Term
Loan,
02/15/29
(j)
.................
40
37,424
Athenahealth
Group,
Inc.,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.50%),
8.26%
,
 02/15/29
.................
326
304,635
Verscend
Holding
Corp.,
Term
Loan
B1,
(1-mo.
LIBOR
USD
+
4.00%),
8.84%
,
 08/27/25
.
336
335,540
677,599
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
18
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
—
0.5%
(d)
Fertitta
Entertainment
LLC,
Term
Loan
B,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
4.00%),
8.81%
,
 01/27/29
...........
USD
172
$
169,021
IRB
Holding
Corp.,
Term
Loan
B,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
+
3.00%),
7.91%
,
 12/15/27
.................
35
34,359
203,380
Household
Durables
—
0.1%
SWF
Holdings
I
Corp.,
1st
Lien
Term
Loan,
(1-
mo.
LIBOR
USD
at
0.75%
Floor
+
4.00%),
8.75%
,
 10/06/28
(d)
................
72
60,586
Insurance
—
0.8%
(d)
Alliant
Holdings
Intermediate
LLC,
Term
Loan
B4,
(1-mo.
LIBOR
USD
at
0.50%
Floor
+
3.50%),
8.28%
,
 11/05/27
............
23
22,499
Alliant
Holdings
Intermediate
LLC,
Term
Loan
B5,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.50%),
8.35%
,
 11/05/27
..........
50
48,872
AssuredPartners,
Inc.,
Term
Loan,
(1-mo.
LIBOR
USD
at
0.50%
Floor
+
3.50%),
8.34%
,
 02/12/27
.................
98
96,930
Hub
International
Ltd.,
Term
Loan,
(3-mo.
CME
Term
SOFR
at
0.75%
Floor
+
4.00%),
8.73%
,
 11/10/29
.................
43
43,015
Hub
International
Ltd.,
Term
Loan
B3,
(3-mo.
LIBOR
USD
at
0.75%
Floor
+
3.25%),
8.06%
,
 04/25/25
.................
147
146,862
358,178
Media
—
1.2%
(d)
Clear
Channel
Outdoor
Holdings,
Inc.,
Term
Loan
B,
(3-mo.
CME
Term
SOFR
+
3.50%),
8.33%
,
 08/21/26
.................
357
331,477
DirecTV
Financing
LLC,
Term
Loan,
(1-mo.
LIBOR
USD
at
0.75%
Floor
+
5.00%),
9.84%
,
 08/02/27
.................
173
165,995
497,472
Passenger
Airlines
—
0.0%
(d)
AAdvantage
Loyalty
IP
Ltd.,
Term
Loan,
(3-mo.
LIBOR
USD
at
0.75%
Floor
+
4.75%),
9.56%
,
 04/20/28
.................
5
5,476
Mileage
Plus
Holdings
LLC,
Term
Loan,
(3-mo.
LIBOR
USD
at
1.00%
Floor
+
5.25%),
10.21%
,
 06/21/27
................
7
7,173
12,649
Professional
Services
—
0.3%
(d)
Dun
&
Bradstreet
Corp.
(The),
Term
Loan,
(1-
mo.
LIBOR
USD
+
3.25%),
8.10%
,
 02/06/26
89
88,354
Dun
&
Bradstreet
Corp.
(The),
Term
Loan
B2,
(1-mo.
CME
Term
SOFR
+
3.25%),
8.04%
,
 01/18/29
.................
43
42,229
130,583
Software
—
1.5%
(d)
Banff
Guarantor,
Inc.,
2nd
Lien
Term
Loan,
(1-
mo.
LIBOR
USD
at
0.50%
Floor
+
5.50%),
10.34%
,
 02/27/26
................
96
92,100
Boxer
Parent
Co.,
Inc.,
Term
Loan,
(1-mo.
LIBOR
USD
+
3.75%),
8.59%
,
 10/02/25
.
157
155,106
Central
Parent,
Inc.,
1st
Lien
Term
Loan,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
+
4.25%),
9.15%
,
 07/06/29
.................
36
35,751
Security
Par
(000)
Par
(000)
Value
Software
(continued)
Cloud
Software
Group,
Inc.,
1st
Lien
Term
Loan
B,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
+
4.50%),
9.50%
,
 03/30/29
...........
USD
182
$
165,014
McAfee
Corp.,
Term
Loan
B1,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.75%),
8.52%
,
 03/01/29
.................
82
76,824
Sabre
GLBL,
Inc.,
Term
Loan
B1,
(1-mo.
LIBOR
USD
at
0.50%
Floor
+
3.50%),
8.34%
,
 12/17/27
.................
6
5,293
Sabre
GLBL,
Inc.,
Term
Loan
B2,
(1-mo.
LIBOR
USD
at
0.50%
Floor
+
3.50%),
8.34%
,
 12/17/27
.................
10
8,476
SS&C
Technologies
Holdings,
Inc.,
Term
Loan
B5,
(1-mo.
LIBOR
USD
+
1.75%),
6.59%
,
 04/16/25
.................
95
94,667
633,231
Textiles,
Apparel
&
Luxury
Goods
—
0.2%
(d)
Crocs,
Inc.,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.50%),
8.41%
,
 02/20/29
.................
61
60,285
Hanesbrands,
Inc.,
Term
Loan
B,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.75%),
8.56%
,
 03/08/30
(i)
................
30
29,850
90,135
Trading
Companies
&
Distributors
—
0.3%
SRS
Distribution,
Inc.,
Term
Loan
(d)
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.25%),
8.16%, 06/02/28
.........
36
35,107
(1-mo.
LIBOR
USD
at
0.50%
Floor
+
3.50%),
8.34%, 06/02/28
.........
99
95,879
130,986
Total
Floating
Rate
Loan
Interests
—
8.6%
(Cost:
$3,879,938)
..............................
3,701,907
Preferred
Securities
Capital
Trusts
—
0.1%
Independent
Power
and
Renewable
Electricity
Producers
—
0.1%
Vistra
Corp.,
(5-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
5.74%),
7.00%
(b)(c)(d)(f)
....................
57
50,160
Total
Preferred
Securities
—
0.1%
(Cost:
$57,000)
................................
50,160
Total
Long-Term
Investments
—
97.8%
(Cost:
$45,753,199)
..............................
42,072,600
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
19
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the six
months
ended
March
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Security
Shares
Shares
Value
Short-Term
Securities
Money
Market
Funds
—
1.6%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
4.70%
(k)(l)
..................
674,502
$
674,502
Total
Short-Term
Securities
—
1.6%
(Cost:
$674,502)
................................
674,502
Total
Options
Purchased
—
0.0%
(Cost:
$21,476)
................................
7,986
Total
Investments
Before
Options
Written
—
99.4%
(Cost:
$46,449,177
)
..............................
42,755,088
Total
Options
Written
—
(0.0)%
(Premium
Received
—
$(9,699))
.....................
(1,672)
Total
Investments
Net
of
Options
Written
—
99.4%
(Cost:
$46,439,478
)
..............................
42,753,416
Other
Assets
Less
Liabilities
—
0.6%
...................
238,203
Net
Assets
—
100.0%
..............................
$
42,991,619
(a)
All
or
a
portion
of
the
security
has
been
pledged
and/or
segregated
as
collateral
in
connection
with
outstanding
exchange-traded
options
written.
(b)
Non-income
producing
security.
(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)
Perpetual
security
with
no
stated
maturity
date.
(g)
Convertible
security.
(h)
Zero-coupon
bond.
(i)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(j)
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.
(k)
Annualized
7-day
yield
as
of
period
end.
(l)
Affiliate
of
the
Fund.
Affiliated
Issuer
Value
at
09/30/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
03/31/23
Shares
Held
at
03/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
...
$
1,002,589
$
—
$
(328,087)
(a)
$
—
$
—
$
674,502
674,502
$
23,322
$
—
—
—
(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.
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
20
Schedule
of
Investments
(unaudited)
(continued)
March
31
,
2023
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
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
S&P
500
E-Mini
Index
.......................................................
2
06/16/23
$
414
$
(24,299)
U.S.
Treasury
10
Year
Note
...................................................
1
06/21/23
115
(3,242)
$
(27,541)
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
Invesco
QQQ
Trust
1
.........................
6
04/14/23
USD
292.00
USD
193
$
216
iShares
Russell
2000
ETF
......................
9
04/21/23
USD
185.00
USD
161
6,611
SPDR
S&P
500
ETF
Trust
......................
19
04/21/23
USD
376.00
USD
778
1,159
$
7,986
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
Invesco
QQQ
Trust
1
..........................
6
04/14/23
USD
270.00
USD
193
$
(51)
iShares
Russell
2000
ETF
.......................
9
04/21/23
USD
170.00
USD
161
(1,098)
SPDR
S&P
500
ETF
Trust
.......................
19
04/21/23
USD
360.00
USD
778
(523)
$
(1,672)
Balances
Reported
in
the
Statements
of
Assets
and
Liabilities
for
Options
Written
Description
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
Value
Options
Written
...................................................
N/A
N/A
8,027
—
(1,672)
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
Options
purchased
Investments
at
value
—
unaffiliated
(a)
............
$
—
$
—
$
7,986
$
—
$
—
$
—
$
7,986
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(b)
......
$
—
$
—
$
24,299
$
—
$
3,242
$
—
$
27,541
Options
written
Options
written
at
value
.....................
—
—
1,672
—
—
—
1,672
$
—
$
—
$
25,971
$
—
$
3,242
$
—
$
29,213
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
21
Schedule
of
Investments
(unaudited)
(continued)
March
31
,
2023
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.
(a)
Includes
options
purchased
at
value
as
reported
in
the
Schedule
of
Investments.
(b)
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
March
31,
2023,
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
.......................
$
—
$
—
$
8,738
$
—
$
13,559
$
—
$
22,297
Options
purchased
(a)
....................
—
—
(27,078)
—
—
—
(27,078)
Options
written
........................
—
—
12,837
—
—
—
12,837
$
—
$
—
$
(5,503)
$
—
$
13,559
$
—
$
8,056
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
(24,299)
$
—
$
(14,146)
$
—
$
(38,445)
Options
purchased
(b)
....................
—
—
(13,490)
—
—
—
(13,490)
Options
written
........................
—
—
8,027
—
—
—
8,027
$
—
$
—
$
(29,762)
$
—
$
(14,146)
$
—
$
(43,908)
(a)
Options
purchased
are
included
in
net
realized
gain
(loss)
from
investments
—
unaffiliated.
(b)
Options
purchased
are
included
in
net
change
in
unrealized
appreciation
(depreciation)
on
investments
—
unaffiliated.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
short
.................................................................................
$
376,560
Options
Average
value
of
option
contracts
purchased
................................................................................
$
14,502
Average
value
of
option
contracts
written
...................................................................................
$
3,164
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Common
Stocks
.........................................
$
94,743
$
—
$
—
$
94,743
Corporate
Bonds
........................................
—
38,225,790
—
38,225,790
Floating
Rate
Loan
Interests
Chemicals
............................................
—
35,972
—
35,972
Commercial
Services
&
Supplies
.............................
—
110,072
—
110,072
Containers
&
Packaging
..................................
—
29,711
—
29,711
Diversified
Consumer
Services
..............................
—
24,891
—
24,891
Diversified
Telecommunication
Services
........................
—
501,670
—
501,670
Financial
Services
......................................
—
—
177,663
177,663
Food
Products
.........................................
—
—
6,486
6,486
Health
Care
Equipment
&
Supplies
...........................
—
2,795
—
2,795
Health
Care
Providers
&
Services
............................
—
17,848
—
17,848
Health
Care
Technology
..................................
—
677,599
—
677,599
Hotels,
Restaurants
&
Leisure
..............................
—
203,380
—
203,380
Household
Durables
.....................................
—
60,586
—
60,586
Insurance
............................................
—
358,178
—
358,178
Media
...............................................
—
497,472
—
497,472
Passenger
Airlines
......................................
—
12,649
—
12,649
Professional
Services
....................................
—
130,583
—
130,583
Software
.............................................
—
633,231
—
633,231
Textiles,
Apparel
&
Luxury
Goods
............................
—
60,285
29,850
90,135
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
High
Yield
Bond
Fund
22
Schedule
of
Investments
(unaudited)
(continued)
March
31
,
2023
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Trading
Companies
&
Distributors
............................
$
—
$
130,986
$
—
$
130,986
Capital
Trusts
...........................................
—
50,160
—
50,160
Short-Term
Securities
Money
Market
Funds
......................................
674,502
—
—
674,502
Options
Purchased
Equity
contracts
..........................................
7,986
—
—
7,986
$
777,231
$
41,763,858
$
213,999
$
42,755,088
Derivative
Financial
Instruments
(a)
Liabilities
Equity
contracts
...........................................
$
(25,971)
$
—
$
—
$
(25,971)
Interest
rate
contracts
.......................................
(3,242)
—
—
(3,242)
$
(29,213)
$
—
$
—
$
(29,213)
(a)
Derivative
financial
instruments
are
futures
contracts
and
options
written.
Futures
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument
and
options
written
are
shown
at
value.
Fair
Value
Hierarchy
as
of Period
End
(continued)
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
23
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
AGL
Core
CLO
4
Ltd.,
Series
2020-4A,
Class
A1R,
(3-mo.
LIBOR
USD
at
1.07%
Floor
+
1.07%),
5.88%,
04/20/33
(a)(b)
.........
USD
250
$
245,996
AIG
CLO
LLC,
Series
2018-1A,
Class
A1R,
(3-
mo.
LIBOR
USD
at
1.12%
Floor
+
1.12%),
5.93%,
04/20/32
(a)(b)
...............
250
246,269
Anchorage
Capital
CLO
3-R
Ltd.,
Series
2014-
3RA,
Class
A,
(3-mo.
LIBOR
USD
at
1.05%
Floor
+
1.05%),
5.85%,
01/28/31
(a)(b)
....
245
241,506
Arbor
Realty
Commercial
Real
Estate
Notes
Ltd.,
Series
2022-FL2,
Class
A,
(1-mo.
CME
Term
SOFR
at
1.85%
Floor
+
1.85%),
6.68%,
05/15/37
(a)(b)
...............
100
98,250
Ares
LVI
CLO
Ltd.,
Series
2020-56A,
Class
AR,
(3-mo.
LIBOR
USD
at
1.16%
Floor
+
1.16%),
5.98%,
10/25/34
(a)(b)
.........
250
243,605
BA
Credit
Card
Trust
Series
2022-A1,
Class
A1,
3.53%,
11/15/27
59
57,647
Series
2022-A2,
Class
A2,
5.00%,
04/15/28
218
220,620
Barings
CLO
Ltd.,
Series
2019-3A,
Class
A1R,
(3-mo.
LIBOR
USD
at
1.07%
Floor
+
1.07%),
5.88%,
04/20/31
(a)(b)
.........
250
246,236
Beechwood
Park
CLO
Ltd.,
Series
2019-1A,
Class
A1R,
(3-mo.
CME
Term
SOFR
at
1.30%
Floor
+
1.30%),
5.96%,
01/17/35
(a)(b)
250
241,669
BlueMountain
CLO
XXII
Ltd.,
Series
2018-22A,
Class
A1,
(3-mo.
LIBOR
USD
at
1.08%
Floor
+
1.08%),
5.87%,
07/15/31
(a)(b)
....
250
246,319
BMW
Vehicle
Owner
Trust,
Series
2022-A,
Class
A3,
3.21%,
08/25/26
..........
237
231,583
Capital
One
Multi-Asset
Execution
Trust
Series
2022-A2,
Class
A,
3.49%,
05/15/27
34
33,201
Series
2022-A3,
Class
A,
4.95%,
10/15/27
64
64,661
CIFC
Funding
Ltd.,
Series
2021-5A,
Class
A,
(3-mo.
LIBOR
USD
at
1.14%
Floor
+
1.14%),
5.93%,
07/15/34
(a)(b)
.........
250
244,213
College
Avenue
Student
Loans
LLC,
Series
2021-C,
Class
A1,
(1-mo.
LIBOR
USD
+
0.90%),
5.75%,
07/26/55
(a)(b)
.........
83
79,418
Discover
Card
Execution
Note
Trust,
Series
2022-A3,
Class
A3,
3.56%,
07/15/27
....
30
29,312
Enterprise
Fleet
Financing
LLC
(b)
Series
2022-4,
Class
A2,
5.76%,
10/22/29
220
221,510
Series
2023-1,
Class
A2,
5.51%,
01/22/29
90
90,183
Ford
Credit
Auto
Owner
Trust
Series
2022-B,
Class
A4,
3.93%,
08/15/27
44
43,298
Series
2023-1,
Class
A,
4.85%,
08/15/35
(b)
145
145,341
Series
2023-A,
Class
A3,
4.65%,
02/15/28
50
49,995
FS
Rialto
Issuer
LLC,
Series
2022-FL5,
Class
A,
(1-mo.
CME
Term
SOFR
at
2.30%
Floor
+
2.30%),
6.99%,
06/19/37
(a)(b)
.........
100
100,190
GM
Financial
Consumer
Automobile
Receivables
Trust,
Series
2022-3,
Class
A3,
3.64%,
04/16/27
.................
54
52,920
GoodLeap
Sustainable
Home
Solutions
Trust
(b)
Series
2021-3CS,
Class
A,
2.10%,
05/20/48
160
126,252
Series
2021-5CS,
Class
A,
2.31%,
10/20/48
82
64,804
Series
2022-1GS,
Class
A,
2.70%,
01/20/49
45
36,588
Series
2022-2CS,
Class
A,
4.00%,
04/20/49
23
21,055
Series
2022-3CS,
Class
A,
4.95%,
07/20/49
56
53,359
Honda
Auto
Receivables
Owner
Trust,
Series
2023-1,
Class
A3,
5.04%,
04/21/27
.....
110
110,814
Hyundai
Auto
Receivables
Trust
Series
2022-B,
Class
A3,
3.72%,
11/16/26
55
54,047
Series
2022-C,
Class
A3,
5.39%,
06/15/27
53
53,637
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Loanpal
Solar
Loan
Ltd.,
Series
2021-1GS,
Class
A,
2.29%,
01/20/48
(b)
..........
USD
135
$
106,208
Madison
Park
Funding
XXXVII
Ltd.,
Series
2019-37A,
Class
AR,
(3-mo.
LIBOR
USD
at
1.07%
Floor
+
1.07%),
5.86%,
07/15/33
(a)(b)
250
245,927
MF1
Multifamily
Housing
Mortgage
Loan
Trust,
Series
2022-FL8,
Class
A,
(SOFR
30
Day
Average
at
1.35%
Floor
+
1.35%),
5.91%,
02/19/37
(a)(b)
....................
100
97,202
Mosaic
Solar
Loan
Trust
(b)
Series
2021-1A,
Class
A,
1.51%,
12/20/46
95
79,235
Series
2022-1A,
Class
A,
2.64%,
01/20/53
88
76,948
Mosaic
Solar
Loans
LLC,
Series
2017-2A,
Class
C,
2.00%,
06/22/43
(b)
..........
17
16,802
Navient
Private
Education
Refi
Loan
Trust
(b)
Series
2020-CA,
Class
A2B,
(1-mo.
LIBOR
USD
+
1.60%),
6.28%,
11/15/68
(a)
...
206
204,033
Series
2021-CA,
Class
A,
1.06%,
10/15/69
124
108,039
Series
2021-GA,
Class
A,
1.58%,
04/15/70
99
86,628
Series
2022-A,
Class
A,
2.23%,
07/15/70
.
129
115,727
Series
2022-BA,
Class
A,
4.16%,
10/15/70
112
107,934
Nelnet
Student
Loan
Trust,
Series
2021-DA,
Class
AFX,
1.63%,
04/20/62
(b)
........
105
95,469
Neuberger
Berman
Loan
Advisers
CLO
26
Ltd.,
Series
2017-26A,
Class
AR,
(3-mo.
LIBOR
USD
at
0.92%
Floor
+
0.92%),
5.71%,
10/18/30
(a)(b)
....................
250
247,526
Octagon
Investment
Partners
XV
Ltd.,
Series
2013-1A,
Class
A1RR,
(3-mo.
LIBOR
USD
at
0.97%
Floor
+
0.97%),
5.77%,
07/19/30
(a)
(b)
...........................
242
239,244
OneMain
Financial
Issuance
Trust,
Series
2022-S1,
Class
A,
4.13%,
05/14/35
(b)
...
120
115,909
Oportun
Issuance
Trust,
Series
2021-C,
Class
A,
2.18%,
10/08/31
(b)
..............
100
90,039
Palmer
Square
CLO
Ltd.,
Series
2013-2A,
Class
A1A3,
(3-mo.
LIBOR
USD
at
1.00%
Floor
+
1.00%),
5.80%,
10/17/31
(a)(b)
....
250
246,878
PFS
Financing
Corp.,
Series
2023-A,
Class
A,
5.80%,
03/15/28
(b)
................
125
127,058
Prodigy
Finance
DAC,
Series
2021-1A,
Class
A,
(1-mo.
LIBOR
USD
+
1.25%),
6.10%,
07/25/51
(a)(b)
....................
95
92,427
Romark
CLO
II
Ltd.,
Series
2018-2A,
Class
A1,
(3-mo.
LIBOR
USD
at
1.18%
Floor
+
1.18%),
5.99%,
07/25/31
(a)(b)
.........
250
246,580
SMB
Private
Education
Loan
Trust
(a)(b)
Series
2022-B,
Class
A1B,
(SOFR
30
Day
Average
+
1.45%),
6.01%,
02/16/55
..
171
168,461
Series
2022-C,
Class
A1B,
(SOFR
30
Day
Average
at
1.85%
Floor
+
1.85%),
6.41%,
05/16/50
....................
86
85,432
SoFi
Professional
Loan
Program
LLC
(b)
Series
2019-A,
Class
A2FX,
3.69%,
06/15/48
....................
152
146,192
Series
2019-B,
Class
A2FX,
3.09%,
08/17/48
....................
37
34,962
SoFi
Professional
Loan
Program
Trust
(b)
Series
2020-A,
Class
A2FX,
2.54%,
05/15/46
....................
64
60,055
Series
2021-B,
Class
AFX,
1.14%,
02/15/47
118
98,278
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
24
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Sunnova
Sol
IV
Issuer
LLC,
Series
2022-A,
Class
A,
2.79%,
02/22/49
(b)
..........
USD
93
$
80,413
Total
Asset-Backed
Securities
—
16.0%
(Cost:
$7,682,729)
..............................
7,414,104
Corporate
Bonds
Aerospace
&
Defense
—
0.3%
(b)
Bombardier,
Inc.
7.13%,
06/15/26
.................
18
18,065
7.88%,
04/15/27
.................
15
15,185
7.50%,
02/01/29
.................
6
6,129
TransDigm,
Inc.
8.00%,
12/15/25
.................
9
9,169
6.25%,
03/15/26
.................
65
65,059
6.75%,
08/15/28
.................
30
30,300
143,907
Automobile
Components
—
0.2%
Clarios
Global
LP,
6.25%,
05/15/26
(b)
.....
65
64,837
Goodyear
Tire
&
Rubber
Co.
(The),
9.50%,
05/31/25
.....................
8
8,221
73,058
Automobiles
—
0.3%
Nissan
Motor
Acceptance
Co.
LLC,
2.00%,
03/09/26
(b)
....................
165
146,229
Banks
—
6.9%
Banco
Bilbao
Vizcaya
Argentaria
SA,
0.38%,
10/02/24
(c)
....................
EUR
100
103,101
Bank
of
America
Corp.
(a)
(1-Day
SOFR
+
1.46%),
1.49%,
05/19/24
USD
100
99,445
(1-Day
SOFR
+
0.91%),
0.98%,
09/25/25
200
186,618
(3-mo.
LIBOR
USD
+
0.87%),
2.46%,
10/22/25
....................
200
190,390
(1-Day
SOFR
+
0.65%),
1.53%,
12/06/25
240
224,383
Bank
of
Montreal,
5.20%,
12/12/24
......
115
115,144
BNP
Paribas
SA,
(3-mo.
EURIBOR
+
0.80%),
0.38%,
10/14/27
(a)(c)
..............
EUR
100
94,854
CaixaBank
SA,
(3-mo.
EURIBOR
+
0.85%),
0.38%,
11/18/26
(a)(c)
..............
100
97,608
Citigroup,
Inc.
(a)
(1-Day
SOFR
+
0.53%),
1.28%,
11/03/25
USD
35
32,693
(1-Day
SOFR
+
1.53%),
3.29%,
03/17/26
60
57,491
(1-Day
SOFR
+
1.55%),
5.61%,
09/29/26
110
110,820
(1-Day
SOFR
+
0.77%),
1.46%,
06/09/27
60
53,272
HSBC
Holdings
plc
(a)
(1-Day
SOFR
+
1.40%),
2.63%,
11/07/25
200
189,232
(1-Day
SOFR
+
1.93%),
2.10%,
06/04/26
200
183,656
HSBC
USA,
Inc.,
5.63%,
03/17/25
......
200
200,376
Intesa
Sanpaolo
SpA,
1.50%,
04/10/24
(c)
...
EUR
100
105,902
JPMorgan
Chase
&
Co.
(a)
(3-mo.
LIBOR
USD
+
0.89%),
3.80%,
07/23/24
....................
USD
49
48,746
(1-Day
SOFR
+
0.49%),
0.77%,
08/09/25
200
187,780
(1-Day
SOFR
+
1.85%),
2.08%,
04/22/26
102
95,445
(3-mo.
LIBOR
USD
+
1.34%),
3.78%,
02/01/28
....................
215
205,573
Lloyds
Banking
Group
plc,
(1-Year
EUR
Swap
Annual
+
0.85%),
0.50%,
11/12/25
(a)(c)
...
EUR
100
102,652
NatWest
Group
plc,
(1-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
2.15%),
2.36%,
05/22/24
(a)
..........
USD
200
198,952
Royal
Bank
of
Canada,
6.00%,
11/01/27
...
56
58,415
Societe
Generale
SA,
(3-mo.
EURIBOR
+
1.28%),
0.88%,
09/22/28
(a)(c)
.........
EUR
100
92,974
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
Toronto-Dominion
Bank
(The),
1.25%,
12/13/24
USD
150
$
140,815
3,176,337
Beverages
—
0.3%
Anheuser-Busch
InBev
Worldwide,
Inc.,
4.00%,
04/13/28
.....................
150
148,293
Biotechnology
—
1.7%
AbbVie,
Inc.,
1.25%,
06/01/24
.........
EUR
100
105,616
Amgen,
Inc.,
5.15%,
03/02/28
.........
USD
230
234,835
Gilead
Sciences,
Inc.
3.70%,
04/01/24
.................
385
380,470
2.95%,
03/01/27
.................
50
47,574
768,495
Broadline
Retail
—
0.1%
(b)
Go
Daddy
Operating
Co.
LLC,
3.50%,
03/01/29
8
6,917
Match
Group
Holdings
II
LLC,
4.63%,
06/01/28
19
17,646
24,563
Building
Products
—
0.1%
Advanced
Drainage
Systems,
Inc.,
5.00%,
09/30/27
(b)
....................
8
7,603
Carrier
Global
Corp.,
2.24%,
02/15/25
....
36
34,349
Standard
Industries,
Inc.,
4.75%,
01/15/28
(b)
20
18,683
60,635
Capital
Markets
—
4.6%
Charles
Schwab
Corp.
(The)
0.90%,
03/11/26
.................
150
131,509
3.30%,
04/01/27
.................
100
92,388
Credit
Suisse
AG,
Series
FXD,
0.52%,
08/09/23
250
242,812
Deutsche
Bank
AG
Series
E,
0.96%,
11/08/23
..........
375
358,033
(1-Day
SOFR
+
2.58%),
3.96%,
11/26/25
(a)
150
141,914
Goldman
Sachs
Group,
Inc.
(The)
(a)
(1-Day
SOFR
+
1.51%),
4.39%,
06/15/27
155
151,413
(1-Day
SOFR
+
1.11%),
2.64%,
02/24/28
95
86,653
Morgan
Stanley
(a)
(1-Day
SOFR
+
0.47%),
5.37%,
11/10/23
200
199,525
(1-Day
SOFR
+
0.53%),
0.79%,
05/30/25
45
42,596
(1-Day
SOFR
+
0.56%),
1.16%,
10/21/25
275
256,810
(3-mo.
EURIBOR
+
0.83%),
1.34%,
10/23/26
....................
EUR
100
101,522
(1-Day
SOFR
+
1.73%),
5.12%,
02/01/29
USD
50
50,397
MSCI,
Inc.,
3.63%,
09/01/30
(b)
.........
5
4,347
State
Street
Corp.,
(1-Day
SOFR
+
1.35%),
5.75%,
11/04/26
(a)
...............
70
71,336
UBS
Group
AG,
(1-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
0.85%),
1.49%,
08/10/27
(a)(b)
.........
200
172,211
2,103,466
Chemicals
—
0.1%
Element
Solutions,
Inc.,
3.88%,
09/01/28
(b)
.
45
39,494
HB
Fuller
Co.,
4.00%,
02/15/27
........
13
11,882
WR
Grace
Holdings
LLC,
5.63%,
08/15/29
(b)
13
11,018
62,394
Commercial
Services
&
Supplies
—
0.5%
ADT
Security
Corp.
(The),
4.13%,
08/01/29
(b)
8
7,134
Allied
Universal
Holdco
LLC,
6.63%,
07/15/26
(b)
21
20,181
APX
Group,
Inc.,
6.75%,
02/15/27
(b)
......
8
7,960
Aramark
Services,
Inc.
(b)
6.38%,
05/01/25
.................
9
9,066
5.00%,
02/01/28
.................
17
16,090
Garda
World
Security
Corp.
(b)
4.63%,
02/15/27
.................
5
4,488
7.75%,
02/15/28
.................
4
3,943
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
25
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Commercial
Services
&
Supplies
(continued)
GFL
Environmental,
Inc.
(b)
5.13%,
12/15/26
.................
USD
14
$
13,689
4.00%,
08/01/28
.................
7
6,360
Legends
Hospitality
Holding
Co.
LLC,
5.00%,
02/01/26
(b)
....................
6
5,369
Neptune
Bidco
US,
Inc.,
9.29%,
04/15/29
(b)
.
2
1,854
Prime
Security
Services
Borrower
LLC,
6.25%,
01/15/28
(b)
....................
12
11,220
Republic
Services,
Inc.,
3.38%,
11/15/27
...
150
143,179
250,533
Communications
Equipment
—
0.1%
(b)
CommScope
Technologies
LLC,
6.00%,
06/15/25
.....................
8
7,534
CommScope,
Inc.,
6.00%,
03/01/26
......
21
20,267
Viasat,
Inc.,
5.63%,
04/15/27
..........
15
14,085
Viavi
Solutions,
Inc.,
3.75%,
10/01/29
....
17
14,538
56,424
Consumer
Finance
—
1.5%
American
Express
Co.,
2.55%,
03/04/27
...
190
175,389
General
Motors
Financial
Co.,
Inc.
3.50%,
11/07/24
.................
100
97,419
6.05%,
10/10/25
.................
100
101,633
John
Deere
Capital
Corp.,
0.70%,
01/15/26
.
100
90,753
OneMain
Finance
Corp.
6.88%,
03/15/25
.................
2
1,938
7.13%,
03/15/26
.................
12
11,535
SLM
Corp.,
3.13%,
11/02/26
..........
7
5,950
Synchrony
Financial,
4.88%,
06/13/25
....
125
115,711
Toyota
Motor
Credit
Corp.,
5.40%,
11/10/25
.
100
102,576
702,904
Consumer
Staples
Distribution
&
Retail
—
0.1%
(b)
Albertsons
Cos.,
Inc.
3.25%,
03/15/26
.................
6
5,646
5.88%,
02/15/28
.................
34
33,791
6.50%,
02/15/28
.................
3
3,008
United
Natural
Foods,
Inc.,
6.75%,
10/15/28
6
5,576
US
Foods,
Inc.
6.25%,
04/15/25
.................
13
13,117
4.75%,
02/15/29
.................
2
1,848
62,986
Containers
&
Packaging
—
0.4%
Ball
Corp.,
4.88%,
03/15/26
..........
72
71,460
Clydesdale
Acquisition
Holdings,
Inc.,
6.63%,
04/15/29
(b)
....................
13
12,513
Crown
Americas
LLC,
4.25%,
09/30/26
...
30
28,760
Graphic
Packaging
International
LLC,
3.50%,
03/15/28
(b)
....................
13
11,898
Mauser
Packaging
Solutions
Holding
Co.,
7.88%,
08/15/26
(b)
...............
41
41,000
Sealed
Air
Corp.
(b)
4.00%,
12/01/27
.................
20
18,664
6.13%,
02/01/28
.................
3
3,033
187,328
Distributors
—
0.0%
Ritchie
Bros
Holdings,
Inc.,
6.75%,
03/15/28
(b)
2
2,060
Diversified
REITs
—
0.0%
(b)
HAT
Holdings
I
LLC,
3.38%,
06/15/26
....
13
11,277
Uniti
Group
LP,
10.50%,
02/15/28
.......
7
6,790
18,067
Security
Par
(000)
Par
(000)
Value
Diversified
Telecommunication
Services
—
0.6%
AT&T,
Inc.,
1.80%,
09/05/26
..........
EUR
100
$
102,089
CCO
Holdings
LLC
(b)
5.13%,
05/01/27
.................
USD
15
14,175
5.00%,
02/01/28
.................
19
17,527
6.38%,
09/01/29
.................
12
11,460
Frontier
Communications
Holdings
LLC
(b)
5.88%,
10/15/27
.................
17
15,455
5.00%,
05/01/28
.................
5
4,339
Level
3
Financing,
Inc.
(b)
3.40%,
03/01/27
.................
8
6,328
4.63%,
09/15/27
.................
4
2,405
4.25%,
07/01/28
.................
21
11,848
3.88%,
11/15/29
.................
7
5,066
Lumen
Technologies,
Inc.,
4.00%,
02/15/27
(b)
8
5,280
Verizon
Communications,
Inc.,
2.10%,
03/22/28
45
40,087
Zayo
Group
Holdings,
Inc.,
4.00%,
03/01/27
(b)
57
43,320
279,379
Electric
Utilities
—
1.6%
EDP
-
Energias
de
Portugal
SA,
1.63%,
04/15/27
(c)
....................
EUR
100
100,175
Eversource
Energy,
5.45%,
03/01/28
.....
USD
55
56,992
Exelon
Corp.,
5.15%,
03/15/28
.........
50
50,871
NextEra
Energy
Capital
Holdings,
Inc.
4.20%,
06/20/24
.................
230
227,337
6.05%,
03/01/25
.................
75
76,297
4.90%,
02/28/28
.................
50
50,331
NextEra
Energy
Operating
Partners
LP,
4.25%,
07/15/24
(b)
....................
13
12,834
NRG
Energy,
Inc.,
5.75%,
01/15/28
......
29
28,440
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
(b)
....................
66
60,380
Texas
Electric
Market
Stabilization
Funding
N
LLC,
Series
A-1,
4.27%,
08/01/34
(b)
....
98
94,459
758,116
Electrical
Equipment
—
0.1%
(b)
Sensata
Technologies
BV
5.00%,
10/01/25
.................
15
14,890
4.00%,
04/15/29
.................
3
2,711
Vertiv
Group
Corp.,
4.13%,
11/15/28
.....
18
15,882
33,483
Entertainment
—
0.1%
(b)
Lions
Gate
Capital
Holdings
LLC,
5.50%,
04/15/29
.....................
3
1,973
Live
Nation
Entertainment,
Inc.
6.50%,
05/15/27
.................
2
2,021
4.75%,
10/15/27
.................
13
12,025
3.75%,
01/15/28
.................
23
20,585
36,604
Financial
Services
—
0.6%
Block,
Inc.,
2.75%,
06/01/26
..........
23
20,971
Enact
Holdings,
Inc.,
6.50%,
08/15/25
(b)
...
13
12,675
Fidelity
National
Information
Services,
Inc.,
1.15%,
03/01/26
................
100
88,973
MGIC
Investment
Corp.,
5.25%,
08/15/28
..
10
9,505
Nationstar
Mortgage
Holdings,
Inc.,
6.00%,
01/15/27
(b)
....................
3
2,723
PayPal
Holdings,
Inc.,
2.65%,
10/01/26
...
110
103,723
Sabre
GLBL,
Inc.
(b)
9.25%,
04/15/25
.................
2
1,884
7.38%,
09/01/25
.................
5
4,467
11.25%,
12/15/27
................
2
1,864
Shift4
Payments
LLC,
4.63%,
11/01/26
(b)
...
15
14,100
260,885
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
26
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Food
Products
—
0.6%
Chobani
LLC,
4.63%,
11/15/28
(b)
........
USD
14
$
12,758
Darling
Ingredients,
Inc.,
5.25%,
04/15/27
(b)
.
15
14,625
General
Mills,
Inc.,
5.24%,
11/18/25
......
95
95,285
Kraft
Heinz
Foods
Co.,
3.00%,
06/01/26
...
100
95,523
Lamb
Weston
Holdings,
Inc.,
4.88%,
05/15/28
(b)
37
35,888
254,079
Ground
Transportation
—
0.4%
Ryder
System,
Inc.,
3.75%,
06/09/23
.....
110
109,596
Uber
Technologies,
Inc.
(b)
8.00%,
11/01/26
.................
6
6,151
6.25%,
01/15/28
.................
28
27,930
4.50%,
08/15/29
.................
12
10,935
Williams
Scotsman
International,
Inc.,
4.63%,
08/15/28
(b)
....................
14
12,736
167,348
Health
Care
Equipment
&
Supplies
—
0.1%
Avantor
Funding,
Inc.,
4.63%,
07/15/28
(b)
..
26
24,635
Hologic,
Inc.,
4.63%,
02/01/28
(b)
........
9
8,736
Medline
Borrower
LP,
3.88%,
04/01/29
(b)
...
7
6,072
Teleflex,
Inc.
4.63%,
11/15/27
.................
2
1,954
4.25%,
06/01/28
(b)
................
12
11,411
52,808
Health
Care
Providers
&
Services
—
2.3%
Centene
Corp.,
2.45%,
07/15/28
........
31
26,970
Community
Health
Systems,
Inc.,
6.00%,
01/15/29
(b)
....................
17
14,380
CVS
Health
Corp.,
6.25%,
06/01/27
......
50
52,836
Elevance
Health,
Inc.,
5.35%,
10/15/25
...
225
226,973
Encompass
Health
Corp.,
4.50%,
02/01/28
.
34
31,691
Fresenius
SE
&
Co.
KGaA,
0.75%,
01/15/28
(c)
EUR
100
93,556
HCA,
Inc.
5.25%,
04/15/25
.................
USD
50
49,968
5.88%,
02/15/26
.................
155
157,295
HealthEquity,
Inc.,
4.50%,
10/01/29
(b)
.....
17
15,104
Legacy
LifePoint
Health
LLC
(b)
6.75%,
04/15/25
.................
2
1,898
4.38%,
02/15/27
.................
2
1,636
ModivCare,
Inc.,
5.88%,
11/15/25
(b)
......
2
1,917
Molina
Healthcare,
Inc.,
4.38%,
06/15/28
(b)
.
22
20,466
Tenet
Healthcare
Corp.
6.25%,
02/01/27
.................
2
1,967
5.13%,
11/01/27
.................
54
51,843
UnitedHealth
Group,
Inc.
5.15%,
10/15/25
.................
195
198,678
2.95%,
10/15/27
.................
100
94,428
1,041,606
Health
Care
REITs
—
0.5%
Healthpeak
OP
LLC,
1.35%,
02/01/27
....
100
87,870
Welltower
OP
LLC
4.00%,
06/01/25
.................
50
48,548
4.25%,
04/01/26
.................
100
97,810
234,228
Hotels,
Restaurants
&
Leisure
—
0.3%
(b)
1011778
BC
ULC
3.88%,
01/15/28
.................
8
7,440
4.38%,
01/15/28
.................
35
32,310
Cedar
Fair
LP,
5.50%,
05/01/25
........
9
8,995
Hilton
Domestic
Operating
Co.,
Inc.
5.75%,
05/01/28
.................
58
58,000
3.75%,
05/01/29
.................
2
1,790
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
6
6,062
Security
Par
(000)
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
Vail
Resorts,
Inc.,
6.25%,
05/15/25
......
USD
9
$
9,021
123,618
Household
Durables
—
0.0%
Tempur
Sealy
International,
Inc.,
4.00%,
04/15/29
(b)
....................
10
8,798
Independent
Power
and
Renewable
Electricity
Producers
—
0.2%
Clearway
Energy
Operating
LLC,
4.75%,
03/15/28
(b)
....................
90
85,950
TransAlta
Corp.,
7.75%,
11/15/29
.......
14
14,712
100,662
Insurance
—
0.3%
(b)
Alliant
Holdings
Intermediate
LLC
4.25%,
10/15/27
.................
77
68,968
6.75%,
04/15/28
.................
10
9,888
AmWINS
Group,
Inc.,
4.88%,
06/30/29
....
3
2,655
NFP
Corp.,
4.88%,
08/15/28
..........
58
52,316
133,827
IT
Services
—
0.6%
Booz
Allen
Hamilton,
Inc.,
3.88%,
09/01/28
(b)
9
8,213
Gartner,
Inc.,
4.50%,
07/01/28
(b)
........
26
24,679
International
Business
Machines
Corp.
0.95%,
05/23/25
.................
EUR
100
102,994
4.50%,
02/06/26
.................
USD
100
99,816
Northwest
Fiber
LLC,
4.75%,
04/30/27
(b)
...
20
17,087
Twilio,
Inc.,
3.63%,
03/15/29
..........
23
19,837
272,626
Life
Sciences
Tools
&
Services
—
0.3%
Charles
River
Laboratories
International,
Inc.,
4.25%,
05/01/28
(b)
...............
32
29,948
Danaher
Corp.,
2.10%,
09/30/26
.......
EUR
100
104,185
134,133
Machinery
—
0.0%
(b)
Mueller
Water
Products,
Inc.,
4.00%,
06/15/29
USD
6
5,359
Wabash
National
Corp.,
4.50%,
10/15/28
..
10
8,670
14,029
Media
—
0.4%
Clear
Channel
Outdoor
Holdings,
Inc.,
5.13%,
08/15/27
(b)
....................
55
49,363
Comcast
Corp.,
4.15%,
10/15/28
.......
45
44,515
DirecTV
Financing
LLC,
5.88%,
08/15/27
(b)
.
12
10,868
GCI
LLC,
4.75%,
10/15/28
(b)
..........
2
1,725
Outfront
Media
Capital
LLC,
5.00%,
08/15/27
(b)
6
5,405
Radiate
Holdco
LLC,
4.50%,
09/15/26
(b)
...
4
3,130
Sirius
XM
Radio,
Inc.
(b)
5.00%,
08/01/27
.................
2
1,873
4.00%,
07/15/28
.................
49
42,088
TEGNA,
Inc.,
4.75%,
03/15/26
(b)
........
2
1,897
160,864
Metals
&
Mining
—
0.4%
Big
River
Steel
LLC,
6.63%,
01/31/29
(b)
...
61
60,534
Novelis
Corp.
(b)
3.25%,
11/15/26
.................
37
33,813
3.88%,
08/15/31
.................
21
17,687
Steel
Dynamics,
Inc.,
2.40%,
06/15/25
....
50
47,162
159,196
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.0%
Starwood
Property
Trust,
Inc.
(b)
5.50%,
11/01/23
.................
2
2,004
4.38%,
01/15/27
.................
6
4,959
6,963
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
27
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Multi-Utilities
—
0.6%
E.ON
SE,
0.88%,
01/08/25
(c)
..........
EUR
30
$
31,083
Engie
SA,
1.75%,
03/27/28
(c)
..........
100
99,783
Sempra
Energy,
3.30%,
04/01/25
.......
USD
50
48,391
Veolia
Environnement
SA,
0.00%,
01/14/27
(c)
EUR
100
94,775
274,032
Oil,
Gas
&
Consumable
Fuels
—
0.2%
Eni
SpA,
1.00%,
03/14/25
(c)
...........
100
103,520
Passenger
Airlines
—
0.2%
(b)
American
Airlines,
Inc.
11.75%,
07/15/25
................
USD
16
17,505
5.50%,
04/20/26
.................
11
11,056
7.25%,
02/15/28
.................
2
1,945
5.75%,
04/20/29
.................
6
5,755
Mileage
Plus
Holdings
LLC,
6.50%,
06/20/27
9
8,473
United
Airlines,
Inc.
4.38%,
04/15/26
.................
42
40,182
4.63%,
04/15/29
.................
3
2,713
87,629
Pharmaceuticals
—
0.1%
Catalent
Pharma
Solutions,
Inc.,
5.00%,
07/15/27
(b)
....................
33
32,226
Professional
Services
—
0.0%
(b)
AMN
Healthcare,
Inc.,
4.63%,
10/01/27
...
11
10,196
CoreLogic,
Inc.,
4.50%,
05/01/28
.......
9
6,829
17,025
Real
Estate
Management
&
Development
—
0.1%
(b)
Cushman
&
Wakefield
US
Borrower
LLC,
6.75%,
05/15/28
................
16
14,324
Howard
Hughes
Corp.
(The),
5.38%,
08/01/28
19
17,302
Realogy
Group
LLC,
5.75%,
01/15/29
....
11
8,233
39,859
Retail
REITs
—
0.0%
Brookfield
Property
REIT,
Inc.,
4.50%,
04/01/27
(b)
....................
6
4,815
Semiconductors
&
Semiconductor
Equipment
—
2.2%
Broadcom
Corp.
3.13%,
01/15/25
.................
5
4,817
3.88%,
01/15/27
.................
120
116,004
Entegris
Escrow
Corp.,
4.75%,
04/15/29
(b)
..
17
16,072
Entegris,
Inc.,
4.38%,
04/15/28
(b)
.......
13
11,745
Intel
Corp.,
4.88%,
02/10/28
..........
70
71,125
Lam
Research
Corp.
3.80%,
03/15/25
.................
20
19,650
3.75%,
03/15/26
.................
143
140,604
NXP
BV
4.88%,
03/01/24
.................
225
223,003
2.70%,
05/01/25
.................
330
312,634
Synaptics,
Inc.,
4.00%,
06/15/29
(b)
.......
7
6,028
Texas
Instruments,
Inc.,
4.60%,
02/15/28
..
100
102,072
1,023,754
Software
—
1.9%
Alteryx,
Inc.,
8.75%,
03/15/28
(b)
........
4
4,026
Black
Knight
InfoServ
LLC,
3.63%,
09/01/28
(b)
15
13,631
Central
Parent,
Inc.,
7.25%,
06/15/29
(b)
....
6
5,897
Clarivate
Science
Holdings
Corp.,
3.88%,
07/01/28
(b)
....................
41
36,591
Cloud
Software
Group
Holdings,
Inc.,
6.50%,
03/31/29
(b)
....................
40
35,384
Consensus
Cloud
Solutions,
Inc.,
6.00%,
10/15/26
(b)
....................
13
11,294
Elastic
NV,
4.13%,
07/15/29
(b)
.........
18
15,368
Fair
Isaac
Corp.,
4.00%,
06/15/28
(b)
......
12
11,130
Security
Par
(000)
Par
(000)
Value
Software
(continued)
Gen
Digital,
Inc.,
6.75%,
09/30/27
(b)
......
USD
10
$
10,052
MicroStrategy,
Inc.,
6.13%,
06/15/28
(b)
....
7
6,212
Open
Text
Corp.,
6.90%,
12/01/27
(b)
.....
13
13,411
Oracle
Corp.
1.65%,
03/25/26
.................
110
101,055
3.25%,
11/15/27
.................
200
187,996
PTC,
Inc.,
4.00%,
02/15/28
(b)
..........
14
13,083
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
(b)
23
22,317
Veritas
US,
Inc.,
7.50%,
09/01/25
(b)
......
2
1,506
VMware,
Inc.
0.60%,
08/15/23
.................
120
117,741
1.40%,
08/15/26
.................
155
137,097
3.90%,
08/21/27
.................
55
52,651
Workday,
Inc.,
3.50%,
04/01/27
........
80
76,541
ZoomInfo
Technologies
LLC,
3.88%,
02/01/29
(b)
18
15,583
888,566
Specialized
REITs
—
2.8%
American
Tower
Corp.
1.60%,
04/15/26
.................
330
298,435
0.45%,
01/15/27
.................
EUR
100
94,627
3.65%,
03/15/27
.................
USD
60
56,990
Crown
Castle,
Inc.
3.15%,
07/15/23
.................
350
347,829
3.20%,
09/01/24
.................
50
48,569
1.05%,
07/15/26
.................
170
149,799
Equinix,
Inc.
1.00%,
09/15/25
.................
200
181,131
0.25%,
03/15/27
.................
EUR
100
93,459
Iron
Mountain,
Inc.,
5.00%,
07/15/28
(b)
....
USD
20
18,610
SBA
Communications
Corp.
3.88%,
02/15/27
.................
20
18,880
3.13%,
02/01/29
.................
2
1,740
1,310,069
Specialty
Retail
—
0.6%
GYP
Holdings
III
Corp.,
4.63%,
05/01/29
(b)
..
3
2,565
Home
Depot,
Inc.
(The),
2.88%,
04/15/27
..
55
52,431
Lowe's
Cos.,
Inc.,
3.10%,
05/03/27
......
180
171,047
SRS
Distribution,
Inc.,
4.63%,
07/01/28
(b)
..
42
37,300
Staples,
Inc.,
7.50%,
04/15/26
(b)
........
5
4,381
267,724
Textiles,
Apparel
&
Luxury
Goods
—
0.1%
(b)
Crocs,
Inc.,
4.25%,
03/15/29
..........
17
14,911
William
Carter
Co.
(The),
5.63%,
03/15/27
..
14
13,608
28,519
Trading
Companies
&
Distributors
—
0.2%
Aviation
Capital
Group
LLC,
1.95%,
09/20/26
(b)
50
43,276
Herc
Holdings,
Inc.,
5.50%,
07/15/27
(b)
....
14
13,510
Imola
Merger
Corp.,
4.75%,
05/15/29
(b)
....
8
7,157
United
Rentals
North
America,
Inc.,
4.88%,
01/15/28
.....................
21
20,081
WESCO
Distribution,
Inc.,
7.25%,
06/15/28
(b)
24
24,643
108,667
Wireless
Telecommunication
Services
—
0.4%
Rogers
Communications,
Inc.,
3.20%,
03/15/27
(b)
....................
145
136,427
Sprint
LLC,
7.63%,
03/01/26
..........
38
40,184
T-Mobile
USA,
Inc.,
2.25%,
02/15/26
.....
23
21,392
198,003
Total
Corporate
Bonds
—
36.0%
(Cost:
$17,403,885)
..............................
16,605,339
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
28
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Foreign
Agency
Obligations
France
—
0.2%
Electricite
de
France
SA,
1.00%
,
10/13/26
(c)
.
EUR
100
$
100,015
Germany
—
0.4%
Kreditanstalt
fuer
Wiederaufbau,
0.00%
,
09/15/28
(c)
.....................
200
186,020
Supranational
—
0.9%
European
Investment
Bank,
0.50%
,
11/15/23
(c)
400
427,097
Total
Foreign
Agency
Obligations
—
1.5%
(Cost:
$779,132)
................................
713,132
Non-Agency
Mortgage-Backed
Securities
Collateralized
Mortgage
Obligations
—
1.8%
(a)(b)
Angel
Oak
Mortgage
Trust,
Series
2022-2,
Class
A1,
3.35%,
01/25/67
..........
USD
44
39,822
COLT
Mortgage
Loan
Trust,
Series
2022-3,
Class
A1,
3.90%,
02/25/67
..........
90
83,426
CSMC
Trust,
Series
2021-NQM8,
Class
A1,
1.84%,
10/25/66
.................
84
72,202
Deephaven
Residential
Mortgage
Trust,
Series
2021-4,
Class
A1,
1.93%,
11/25/66
.....
82
69,250
Flagstar
Mortgage
Trust,
Series
2021-12,
Class
A19,
5.00%,
11/25/51
..............
115
112,169
GCAT
Trust,
Series
2021-NQM7,
Class
A1,
1.91%,
08/25/66
.................
67
58,886
JP
Morgan
Mortgage
Trust,
Series
2021-7,
Class
A3,
2.50%,
11/25/51
..........
110
88,414
MFA
Trust,
Series
2021-INV2,
Class
A1,
1.91%,
11/25/56
.......................
174
148,178
PRKCM
Trust,
Series
2021-AFC2,
Class
A1,
2.07%,
11/25/56
.................
100
83,028
RCKT
Mortgage
Trust,
Series
2022-4,
Class
A2,
3.50%,
06/25/52
..............
95
83,482
838,857
Commercial
Mortgage-Backed
Securities
—
4.1%
AREIT
LLC,
Series
2022-CRE7,
Class
A,
(1-mo.
CME
Term
SOFR
at
2.24%
Floor
+
2.24%),
6.99%,
06/17/39
(a)(b)
.........
100
99,250
BAMLL
Commercial
Mortgage
Securities
Trust,
Series
2015-200P,
Class
A,
3.22%,
04/14/33
(b)
.....................
200
186,543
Commercial
Mortgage
Trust
Series
2013-CR10,
Class
A4,
4.21%,
08/10/46
(a)
...................
168
167,652
Series
2015-CR22,
Class
A5,
3.31%,
03/10/48
....................
200
191,461
CSAIL
Commercial
Mortgage
Trust,
Series
2016-C5,
Class
A5,
3.76%,
11/15/48
....
200
190,971
Grace
Trust,
Series
2020-GRCE,
Class
A,
2.35%,
12/10/40
(b)
................
150
116,926
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
(b)
Series
2021-NYAH,
Class
A,
(1-mo.
LIBOR
USD
at
0.76%
Floor
+
0.76%),
5.44%,
06/15/38
(a)
...................
200
193,655
Series
2022-OPO,
Class
A,
3.02%,
01/05/39
100
86,789
MAD
Mortgage
Trust,
Series
2017-330M,
Class
A,
2.98%,
08/15/34
(a)(b)
.............
250
236,893
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series
2014-C15,
Class
A4,
4.05%,
04/15/47
....................
135
132,841
Series
2015-C20,
Class
A4,
3.25%,
02/15/48
....................
180
172,477
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Ready
Capital
Mortgage
Financing
LLC,
Series
2022-FL8,
Class
A,
(SOFR
30
Day
Average
at
1.65%
Floor
+
1.65%),
6.22%,
01/25/37
(a)
(b)
...........................
USD
60
$
58,972
Wells
Fargo
Commercial
Mortgage
Trust,
Series
2016-LC25,
Class
A4,
3.64%,
12/15/59
......................
50
46,889
1,881,319
Total
Non-Agency
Mortgage-Backed
Securities
—
5.9%
(Cost:
$2,965,991)
..............................
2,720,176
U.S.
Government
Sponsored
Agency
Securities
Agency
Obligations
—
2.2%
Federal
Farm
Credit
Bank
Bonds
1.68%, 09/17/35
.................
220
162,453
2.17%, 10/29/29
.................
80
70,619
2.25%, 08/15/29
.................
150
133,366
Federal
Home
Loan
Bank
Bonds
0.60%, 12/30/26
.................
120
105,717
2.06%, 09/27/29
.................
150
131,716
2.18%, 11/06/29
.................
100
88,337
Federal
Home
Loan
Mortgage
Corp.,
0.65%, 05/28/26
.................
120
108,014
Federal
National
Mortgage
Association
0.74%, 08/25/27
.................
120
104,256
0.81%, 09/25/28
.................
120
101,800
1,006,278
Mortgage-Backed
Securities
—
7.3%
Government
National
Mortgage
Association
2.50%, 10/20/51
.................
200
174,673
3.00%, 10/20/51
.................
994
907,193
Uniform
Mortgage-Backed
Securities
2.50%, 11/01/51
.................
184
160,705
3.00%, 11/01/51
.................
251
230,207
3.00%, 04/25/53
(d)
................
980
879,314
3.50%, 11/01/51
.................
943
899,970
5.50%, 04/25/53
(d)
................
123
124,242
3,376,304
Total
U.S.
Government
Sponsored
Agency
Securities
—
9.5%
(Cost:
$4,701,298)
..............................
4,382,582
U.S.
Treasury
Obligations
U.S.
Treasury
Notes
0.88%, 01/31/24
.................
1,155
1,118,500
1.50%, 02/29/24
.................
3,560
3,460,292
2.25%, 03/31/24
.................
1,400
1,367,680
1.75%, 03/15/25
.................
120
114,778
2.88%, 06/15/25
.................
1,780
1,738,003
3.50%, 09/15/25
-
01/31/28
..........
2,010
1,991,522
4.50%, 11/15/25
.................
25
25,369
3.88%, 01/15/26
.................
1,500
1,500,469
4.00%, 02/15/26
.................
1,080
1,084,472
4.63%, 03/15/26
.................
1,040
1,063,725
Total
U.S.
Treasury
Obligations
—
29.2%
(Cost:
$13,447,370)
..............................
13,464,810
Total
Long-Term
Investments
—
98.1%
(Cost:
$46,980,405)
..............................
45,300,143
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
29
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the six
months
ended
March
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Security
Par
(000)
Par
(000)
Value
Short-Term
Securities
Commercial
Paper
—
2.1%
(e)
AT&T,
Inc.,
5.93%
,
02/21/24
...........
USD
250
$
237,122
Enel
Finance
America
LLC,
5.27%
,
09/06/23
250
243,002
NatWest
Markets
plc,
5.74%
,
02/26/24
....
250
237,085
Societe
Generale
SA,
5.70%
,
03/06/24
....
250
238,497
Total
Commercial
Paper
—
2.1%
(Cost:
$956,629)
................................
955,706
Shares
Shares
Money
Market
Funds
—
1.2%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
4.70%
(f)(g)
.................
558,511
558,511
Total
Money
Market
Funds
—
1.2%
(Cost:
$558,511)
................................
558,511
Total
Short-Term
Securities
—
3.3%
(Cost:
$1,515,140)
..............................
1,514,217
Total
Investments
Before
TBA
Sale
Commitments
—
101.4%
(Cost:
$48,495,545
)
..............................
46,814,360
Security
Par
(000)
Pa
r
(
000)
Value
TBA
Sale
Commitments
Mortgage-Backed
Securities
—
(2.2)%
Uniform
Mortgage-Backed
Securities
(d)
3.00%
,
 04/25/53
.................
USD
(980)
$
(879,314)
5.50%
,
 04/25/53
.................
(123)
(124,242)
Total
TBA
Sale
Commitments
—
(2.2)%
(Proceeds:
$(997,789))
...........................
(1,003,556)
Total
Investments
Net
of
TBA
Sale
Commitments
—
99.2%
(Cost:
$47,497,756
)
..............................
45,810,804
Other
Assets
Less
Liabilities
—
0.8%
...................
359,008
Net
Assets
—
100.0%
..............................
$
46,169,812
(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.
Affiliated
Issuer
Value
at
09/30/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
03/31/23
Shares
Held
at
03/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
...
$
1,345,914
$
—
$
(787,403)
(a)
$
—
$
—
$
558,511
558,511
$
15,809
$
—
—
—
(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.
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
30
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
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
....................................................
88
06/30/23
$
18,181
$
155,034
Short
Contracts
Euro-Bobl
...............................................................
9
06/08/23
1,151
(25,518)
Euro-Bund
..............................................................
1
06/08/23
147
(5,225)
Euro-Schatz
.............................................................
1
06/08/23
115
(1,036)
Japan
10
Year
Bond
........................................................
1
06/13/23
1,116
(21,419)
U.S.
Treasury
10
Year
Note
...................................................
9
06/21/23
1,036
5,424
U.S.
Treasury
10
Year
Ultra
Note
...............................................
7
06/21/23
849
(25,887)
U.S.
Treasury
Long
Bond
.....................................................
5
06/21/23
657
(22,760)
U.S.
Treasury
Ultra
Bond
.....................................................
2
06/21/23
283
(14,209)
U.S.
Treasury
5
Year
Note
....................................................
35
06/30/23
3,838
(38,820)
(149,450)
$
5,584
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
USD
2,518,599
EUR
2,335,500
Bank
of
America
NA
06/21/23
$
(25,658)
USD
20,492
EUR
19,000
Deutsche
Bank
AG
06/21/23
(206)
$
(25,864)
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)
Markit
CDX
North
American
High
Yield
Index
Series
39.V1
.....................
5.00
%
Quarterly
12/20/27
USD
2,000
$
(26,937)
$
33,239
$
(60,176)
Markit
CDX
North
American
Investment
Grade
Index
Series
40.V1
................
1.00
Quarterly
06/20/28
USD
940
(11,064)
(6,988)
(4,076)
$
(38,001)
$
26,251
$
(64,252)
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
4.35%
Annual
04/05/23
(a)
12/31/24
USD
1,025
$
2,532
$
172
$
2,360
3.59%
Annual
1-day
SOFR
Annual
04/05/23
(a)
05/31/27
USD
1,025
(5,450)
37
(5,487)
$
(2,918)
$
209
$
(3,127)
(a)
Forward
swap.
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
31
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
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
4.87
%
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)
............................................
$
33,448
$
(6,988)
$
2,360
$
(69,739)
$
—
(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
ap
preciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
160,458
$
—
$
160,458
Swaps
—
centrally
cleared
Unrealized
apprecia
tion
on
centrally
cleared
swaps
(a)
.
—
—
—
—
2,360
—
2,360
$
—
$
—
$
—
$
—
$
162,818
$
—
$
162,818
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
de
preciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
154,874
$
—
$
154,874
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
25,864
—
—
25,864
Swaps
—
centrally
cleared
Unrealized
deprecia
tion
on
centrally
cleared
swaps
(a)
.
—
64,252
—
—
5,487
—
69,739
$
—
$
64,252
$
—
$
25,864
$
160,361
$
—
$
250,477
(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
March
31,
2023,
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
.......................
$
—
$
—
$
—
$
—
$
(38,431)
$
—
$
(38,431)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(235,998)
—
—
(235,998)
Swaps
..............................
—
(48,791)
—
—
3,127
—
(45,664)
$
—
$
(48,791)
$
—
$
(235,998)
$
(35,304)
$
—
$
(320,093)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
(59,327)
$
—
$
(59,327)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(107,864)
—
—
(107,864)
Swaps
..............................
—
(61,838)
—
—
(17,646)
—
(79,484)
$
—
$
(61,838)
$
—
$
(107,864)
$
(76,973)
$
—
$
(246,675)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Low
Duration
Bond
Fund
32
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
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
..................................................................................
$
18,315,469
Average
notional
value
of
contracts
—
short
.................................................................................
$
9,322,935
Forward
foreign
currency
exchange
contracts
Average
amounts
purchased
—
in
USD
....................................................................................
$
3,547,322
Average
amounts
sold
—
in
USD
........................................................................................
$
956,685
Credit
default
swaps
Average
notional
value
—
buy
protection
...................................................................................
$
2,730,000
Interest
rate
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
1,025,000
Average
notional
value
—
receives
fixed
rate
................................................................................
$
1,025,000
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Liabilities
Derivative
Financial
Instruments
Futures
contracts
...................................................................................................
$
7,037
Forward
foreign
currency
exchange
contracts
................................................................................
25,864
Swaps
—
centrally
cleared
.............................................................................................
25,118
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
...........................................................
$
58,019
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
.......................................................
(32,155)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
...........................................................................
$
25,864
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
Liabilities
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
Non-cash
Collateral
Pledged
Cash
Collateral
Pledged
Net
Amount
of
Derivative
Liabilities
(a)(b)
Bank
of
America
NA
..............................
$
25,658
$
—
$
—
$
—
$
25,658
Deutsche
Bank
AG
...............................
206
—
—
—
206
$
25,864
$
—
$
—
$
—
$
25,864
(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
payable
due
to
the
counterparty
in
the
event
of
default.
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
33
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
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.
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Asset-Backed
Securities
...................................
$
—
$
7,414,104
$
—
$
7,414,104
Corporate
Bonds
........................................
—
16,605,339
—
16,605,339
Foreign
Agency
Obligations
.................................
—
713,132
—
713,132
Non-Agency
Mortgage-Backed
Securities
........................
—
2,720,176
—
2,720,176
U.S.
Government
Sponsored
Agency
Securities
....................
—
4,382,582
—
4,382,582
U.S.
Treasury
Obligations
...................................
—
13,464,810
—
13,464,810
Short-Term
Securities
Commercial
Paper
.......................................
—
955,706
—
955,706
Money
Market
Funds
......................................
558,511
—
—
558,511
Liabilities
Investments
TBA
Sale
Commitments
....................................
—
(1,003,556)
—
(1,003,556)
$
558,511
$
45,252,293
$
—
$
45,810,804
Derivative
Financial
Instruments
(a)
Assets
Interest
rate
contracts
.......................................
$
160,458
$
2,360
$
—
$
162,818
Liabilities
Credit
contracts
...........................................
—
(64,252)
—
(64,252)
Foreign
currency
exchange
contracts
............................
—
(25,864)
—
(25,864)
Interest
rate
contracts
.......................................
(154,874)
(5,487)
—
(160,361)
$
5,584
$
(93,243)
$
—
$
(87,659)
(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.
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
34
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
March
31,
2023
Security
Par
(000)
Pa
r
(
000)
Value
Asset-Backed
Securities
Cayman
Islands
—
6.3%
(a)(b)
AGL
Core
CLO
4
Ltd.,
Series
2020-4A,
Class
A1R,
(3-mo.
LIBOR
USD
at
1.07%
Floor
+
1.07%),
5.88%,
04/20/33
.................
USD
250
$
245,995
Anchorage
Capital
CLO
8
Ltd.,
Series
2016-8A,
Class
BR2,
(3-mo.
LIBOR
USD
at
1.80%
Floor
+
1.80%),
6.61%,
10/27/34
............
250
239,537
Bridge
Street
CLO
II
Ltd.,
Series
2021-
1A,
Class
A1A,
(3-mo.
LIBOR
USD
at
1.23%
Floor
+
1.23%),
6.04%,
07/20/34
.................
250
244,825
CIFC
Funding
Ltd.,
Series
2020-3A,
Class
A1R,
(3-mo.
LIBOR
USD
at
1.13%
Floor
+
1.13%),
5.94%,
10/20/34
.................
250
243,927
Gilbert
Park
CLO
Ltd.,
Series
2017-1A,
Class
A,
(3-mo.
LIBOR
USD
at
1.19%
Floor
+
1.19%),
5.98%,
10/15/30
.................
250
247,617
Madison
Park
Funding
XVIII
Ltd.,
Series
2015-18A,
Class
ARR,
(3-
mo.
LIBOR
USD
at
0.94%
Floor
+
0.94%),
5.76%,
10/21/30
.......
249
245,917
Neuberger
Berman
Loan
Advisers
CLO
35
Ltd.,
Series
2019-35A,
Class
C,
(3-mo.
LIBOR
USD
at
2.60%
Floor
+
2.60%),
7.40%,
01/19/33
.......
250
244,274
Palmer
Square
CLO
Ltd.,
Series
2021-
3A,
Class
A1,
(3-mo.
LIBOR
USD
at
1.15%
Floor
+
1.15%),
5.94%,
01/15/35
.................
250
243,061
Pikes
Peak
CLO
8,
Series
2021-8A,
Class
B,
(3-mo.
LIBOR
USD
at
1.75%
Floor
+
1.75%),
6.56%,
07/20/34
.................
250
241,023
TCW
CLO
AMR
Ltd.,
Series
2019-1A,
Class
ASNR,
(3-mo.
LIBOR
USD
at
1.22%
Floor
+
1.22%),
6.09%,
08/16/34
.................
250
244,851
Trimaran
Cavu
Ltd.,
Series
2021-2A,
Class
D1,
(3-mo.
LIBOR
USD
at
3.25%
Floor
+
3.25%),
8.07%,
10/25/34
.................
250
226,113
2,667,140
Ireland
—
0.5%
Prodigy
Finance
DAC,
Series
2021-1A,
Class
A,
(1-mo.
LIBOR
USD
+
1.25%),
6.10%,
07/25/51
(a)(b)
....
199
193,727
United
States
—
6.2%
(a)
Diameter
Capital
CLO
1
Ltd.,
Series
2021-1A,
Class
A1A,
(3-mo.
LIBOR
USD
at
1.24%
Floor
+
1.24%),
6.03%,
07/15/36
(b)
...........
250
244,903
Home
Partners
of
America
Trust,
Series
2021-2,
Class
F,
3.80%,
12/17/26
.
484
419,862
Legacy
Mortgage
Asset
Trust,
Series
2019-SL2,
Class
M,
4.25%,
02/25/59
(b)
................
206
160,917
Lendmark
Funding
Trust,
Series
2022-
1A,
Class
A,
5.12%,
07/20/32
...
100
98,357
Mariner
Finance
Issuance
Trust,
Series
2019-AA,
Class
B,
3.51%,
07/20/32
100
97,035
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Mosaic
Solar
Loans
LLC,
Series
2017-
2A,
Class
C,
2.00%,
06/22/43
...
USD
58
$
56,006
Navient
Private
Education
Loan
Trust,
Series
2015-AA,
Class
A3,
(1-mo.
LIBOR
USD
at
1.70%
Floor
+
1.70%),
6.38%,
11/15/30
(b)
......
100
99,678
PRET
LLC,
Series
2021-NPL6,
Class
A1,
2.49%,
07/25/51
(c)
........
313
294,458
Progress
Residential
Trust,
Series
2021-SFR10,
Class
F,
4.61%,
12/17/40
.................
500
413,193
Regional
Management
Issuance
Trust
Series
2020-1,
Class
A,
2.34%,
10/15/30
...............
100
95,790
Series
2021-1,
Class
A,
1.68%,
03/17/31
...............
100
93,342
Series
2022-1,
Class
A,
3.07%,
03/15/32
...............
200
187,366
Tricon
Residential
Trust,
Series
2021-
SFR1,
Class
F,
3.69%,
07/17/38
..
400
352,504
2,613,411
Total
Asset-Backed
Securities
—
13.0%
(Cost:
$5,784,498)
..............................
5,474,278
Corporate
Bonds
Australia
—
0.0%
FMG
Resources
August
2006
Pty.
Ltd.,
6.13%
,
04/15/32
(a)
...........
6
5,775
Belgium
—
0.5%
Anheuser-Busch
InBev
Worldwide,
Inc.,
5.88%
,
06/15/35
............
31
33,755
KBC
Group
NV,
(3-mo.
EURIBOR
+
0.72%),
0.38%
,
06/16/27
(b)(d)
....
EUR
200
193,287
227,042
Canada
—
0.1%
1011778
BC
ULC,
3.88%
,
01/15/28
(a)
USD
2
1,860
Rogers
Communications,
Inc.,
3.70%
,
11/15/49
..................
43
31,532
33,392
China
—
0.3%
NXP
BV
5.55%,
12/01/28
............
68
69,360
3.40%,
05/01/30
............
64
57,352
126,712
France
—
0.9%
(d)
Banque
Federative
du
Credit
Mutuel
SA,
0.10%
,
10/08/27
.........
EUR
100
92,721
BNP
Paribas
SA,
(3-mo.
EURIBOR
+
0.80%),
0.38%
,
10/14/27
(b)
.....
100
94,854
Engie
SA,
1.75%
,
03/27/28
.......
100
99,783
Societe
Generale
SA,
(3-mo.
EURIBOR
+
1.28%),
0.88%
,
09/22/28
(b)
....
100
92,973
380,331
Germany
—
0.8%
Commerzbank
AG,
(3-mo.
EURIBOR
+
1.30%),
0.75%
,
03/24/26
(b)(d)
....
100
99,704
Deutsche
Bank
AG,
(1-Day
SOFR
+
1.87%),
2.13%
,
11/24/26
(b)
.....
USD
150
129,266
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
35
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
Germany
(continued)
E.ON
SE,
1.00%
,
10/07/25
(d)
......
EUR
100
$
102,523
331,493
Italy
—
0.7%
(d)
Intesa
Sanpaolo
SpA
,
1.50%
,
04/10/24
100
105,902
Iren
SpA
1.95%,
09/19/25
............
100
103,242
1.50%,
10/24/27
............
100
98,788
307,932
Japan
—
0.5%
Takeda
Pharmaceutical
Co.
Ltd.,
5.00%
,
11/26/28
............
USD
200
202,155
South
Africa
—
0.4%
Anglo
American
Capital
plc,
3.88%
,
03/16/29
(a)
................
200
183,475
Spain
—
0.9%
(d)
Banco
de
Sabadell
SA,
(1-Year
EUR
Swap
Annual
+
1.55%),
1.13%
,
03/11/27
(b)
................
EUR
100
97,853
Banco
Santander
SA,
0.30%
,
10/04/26
200
193,659
CaixaBank
SA,
(3-mo.
EURIBOR
+
0.85%),
0.38%
,
11/18/26
(b)
.....
100
97,608
389,120
Switzerland
—
0.6%
Credit
Suisse
AG,
4.75%
,
08/09/24
..
USD
250
241,950
United
Kingdom
—
1.2%
CNH
Industrial
NV,
4.50%
,
08/15/23
.
188
187,060
National
Grid
plc,
0.25%
,
09/01/28
(d)
.
EUR
100
89,638
RELX
Capital,
Inc.,
4.00%
,
03/18/29
.
USD
24
23,128
SSE
plc
(d)
0.88%,
09/06/25
............
EUR
100
101,872
1.38%,
09/04/27
............
100
99,915
501,613
United
States
—
21.5%
AbbVie,
Inc.
4.55%,
03/15/35
............
USD
57
55,733
4.70%,
05/14/45
............
43
40,292
AEP
Texas,
Inc.
3.95%,
06/01/28
............
95
91,426
5.25%,
05/15/52
............
43
41,972
Aetna,
Inc.,
6.63%
,
06/15/36
......
7
7,762
Agilent
Technologies,
Inc.,
3.05%
,
09/22/26
.................
20
18,863
Albertsons
Cos.,
Inc.,
4.88%
,
02/15/30
(a)
................
2
1,867
Amazon.com,
Inc.
4.70%,
12/01/32
............
34
34,849
4.05%,
08/22/47
............
57
51,686
American
Express
Co.,
(1-Day
SOFR
+
1.76%),
4.42%
,
08/03/33
(b)
.....
24
22,945
American
International
Group,
Inc.,
4.38%
,
06/30/50
............
27
23,058
American
Tower
Corp.
5.00%,
02/15/24
............
12
11,945
0.45%,
01/15/27
............
EUR
100
94,627
3.80%,
08/15/29
............
USD
105
97,581
American
Transmission
Systems,
Inc.,
2.65%
,
01/15/32
(a)
...........
34
28,626
Amgen,
Inc.
5.15%,
03/02/28
............
51
52,072
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
4.05%,
08/18/29
............
USD
24
$
23,156
4.66%,
06/15/51
............
4
3,635
5.65%,
03/02/53
............
15
15,611
5.75%,
03/02/63
............
15
15,564
Aon
Corp.
3.75%,
05/02/29
............
39
37,269
5.35%,
02/28/33
............
43
44,540
Apple,
Inc.
4.38%,
05/13/45
............
26
25,236
2.80%,
02/08/61
............
37
25,181
Applied
Materials,
Inc.,
4.35%
,
04/01/47
.................
7
6,580
AT&T,
Inc.
2.75%,
06/01/31
............
33
28,440
5.25%,
03/01/37
............
42
42,003
4.75%,
05/15/46
............
63
56,897
4.50%,
03/09/48
............
11
9,518
3.65%,
09/15/59
............
60
42,876
Atlantic
City
Electric
Co.,
4.00%
,
10/15/28
.................
8
7,764
Atmos
Energy
Corp.,
2.85%
,
02/15/52
10
6,790
Autodesk,
Inc.,
2.40%
,
12/15/31
....
53
44,082
Baltimore
Gas
&
Electric
Co.,
3.50%
,
08/15/46
.................
74
57,144
Bank
of
America
Corp.
(b)
(1-Day
SOFR
+
1.46%),
1.49%,
05/19/24
...............
397
394,795
(1-Day
SOFR
+
1.32%),
2.69%,
04/22/32
...............
131
109,323
(1-Day
SOFR
+
1.33%),
2.97%,
02/04/33
...............
310
261,033
(1-Day
SOFR
+
1.83%),
4.57%,
04/27/33
...............
59
56,162
Baxter
International,
Inc.,
2.60%
,
08/15/26
.................
28
26,120
Becton
Dickinson
&
Co.,
4.69%
,
02/13/28
.................
25
25,101
Berry
Global,
Inc.,
5.50%
,
04/15/28
(a)
20
19,935
Biogen,
Inc.,
5.20%
,
09/15/45
.....
9
9,133
Bristol-Myers
Squibb
Co.,
4.55%
,
02/20/48
.................
29
27,401
Broadcom,
Inc.
4.30%,
11/15/32
............
107
98,584
3.14%,
11/15/35
(a)
...........
39
29,993
4.93%,
05/15/37
(a)
...........
56
50,925
Burlington
Northern
Santa
Fe
LLC,
3.30%
,
09/15/51
............
33
25,178
Cameron
LNG
LLC
(a)
2.90%,
07/15/31
............
25
22,235
3.30%,
01/15/35
............
187
160,908
Capital
One
Financial
Corp.,
(1-Day
SOFR
+
2.60%),
5.82%
,
02/01/34
(b)
67
64,743
CCO
Holdings
LLC
(a)
5.38%,
06/01/29
............
4
3,673
4.75%,
03/01/30
............
4
3,466
Cedar
Fair
LP
5.50%,
05/01/25
(a)
...........
2
1,999
5.25%,
07/15/29
............
3
2,797
CenterPoint
Energy
Houston
Electric
LLC
Series
AE,
2.35%,
04/01/31
....
10
8,529
4.95%,
04/01/33
............
15
15,318
Series
AF,
3.35%,
04/01/51
....
15
11,423
Series
AJ,
4.85%,
10/01/52
....
25
24,368
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
36
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Charter
Communications
Operating
LLC
5.13%,
07/01/49
............
USD
8
$
6,333
4.80%,
03/01/50
............
108
82,317
3.90%,
06/01/52
............
15
9,915
4.40%,
12/01/61
............
15
10,249
3.95%,
06/30/62
............
18
11,405
Citigroup,
Inc.
(b)
(1-Day
SOFR
+
1.35%),
3.06%,
01/25/33
...............
62
52,469
(1-Day
SOFR
+
1.94%),
3.79%,
03/17/33
...............
27
24,200
Clear
Channel
Outdoor
Holdings,
Inc.,
5.13%
,
08/15/27
(a)
...........
4
3,590
Comcast
Corp.
1.50%,
02/15/31
............
49
39,346
5.50%,
11/15/32
............
55
58,651
3.75%,
04/01/40
............
44
37,769
3.40%,
07/15/46
............
31
24,042
Commercial
Metals
Co.,
4.38%
,
03/15/32
.................
4
3,441
Commonwealth
Edison
Co.
4.00%,
03/01/48
............
18
15,289
Series
133,
3.85%,
03/15/52
....
24
19,565
5.30%,
02/01/53
............
10
10,440
Consolidated
Edison
Co.
of
New
York,
Inc.,
6.15%
,
11/15/52
.........
26
29,303
Cox
Communications,
Inc.,
3.15%
,
08/15/24
(a)
................
14
13,645
Crown
Castle,
Inc.
2.25%,
01/15/31
............
161
133,433
2.50%,
07/15/31
............
52
43,704
CSX
Corp.
2.50%,
05/15/51
............
26
16,701
4.25%,
11/01/66
............
10
8,256
CVS
Health
Corp.,
3.25%
,
08/15/29
.
35
32,009
Dell
International
LLC,
6.02%
,
06/15/26
67
68,763
Ecolab,
Inc.,
3.95%
,
12/01/47
.....
11
9,475
Edison
International
5.75%,
06/15/27
............
34
34,713
6.95%,
11/15/29
............
45
48,682
Electronic
Arts,
Inc.,
1.85%
,
02/15/31
10
8,249
Elevance
Health,
Inc.,
6.10%
,
10/15/52
19
21,198
Eli
Lilly
&
Co.
4.88%,
02/27/53
............
5
5,170
4.95%,
02/27/63
............
5
5,145
Entergy
Louisiana
LLC,
4.20%
,
09/01/48
.................
41
35,540
Enterprise
Products
Operating
LLC,
3.30%
,
02/15/53
............
45
32,554
Equinix
,
Inc.
0.25%,
03/15/27
............
EUR
100
93,459
3.20%,
11/18/29
............
USD
63
56,237
2.15%,
07/15/30
............
35
28,618
2.50%,
05/15/31
............
15
12,351
Eversource
Energy,
5.45%
,
03/01/28
66
68,391
Exelon
Corp.
5.15%,
03/15/28
............
114
115,985
4.45%,
04/15/46
............
32
27,530
5.60%,
03/15/53
............
15
15,276
FactSet
Research
Systems,
Inc.,
3.45%
,
03/01/32
............
31
27,024
Florida
Power
&
Light
Co.,
4.05%
,
10/01/44
.................
72
63,042
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Ford
Motor
Co.,
3.25%
,
02/12/32
...
USD
2
$
1,572
General
Motors
Co.,
5.00%
,
10/01/28
39
38,427
General
Motors
Financial
Co.,
Inc.
5.10%,
01/17/24
............
199
198,387
4.35%,
04/09/25
............
152
148,829
4.30%,
04/06/29
............
13
12,082
2.35%,
01/08/31
............
61
48,165
Gilead
Sciences,
Inc.
4.60%,
09/01/35
............
38
37,634
4.75%,
03/01/46
............
26
24,998
Global
Payments,
Inc.
1.20%,
03/01/26
............
218
193,894
4.45%,
06/01/28
............
51
48,406
5.30%,
08/15/29
............
34
33,575
GLP
Capital
LP
4.00%,
01/15/30
............
34
30,149
4.00%,
01/15/31
............
27
23,161
3.25%,
01/15/32
............
40
32,454
Goldman
Sachs
Group,
Inc.
(The)
(b)
(3-mo.
LIBOR
USD
+
1.51%),
3.69%,
06/05/28
..........
30
28,417
(1-Day
SOFR
+
1.28%),
2.62%,
04/22/32
...............
246
204,916
Hasbro,
Inc.,
3.90%
,
11/19/29
.....
11
10,014
HCA,
Inc.
5.88%,
02/01/29
............
21
21,454
5.50%,
06/15/47
............
43
40,364
Herc
Holdings,
Inc.,
5.50%
,
07/15/27
(a)
4
3,860
Hewlett
Packard
Enterprise
Co.
5.90%,
10/01/24
............
40
40,504
4.90%,
10/15/25
(c)
...........
38
37,939
iHeartCommunications
,
Inc.,
5.25%
,
08/15/27
(a)
................
2
1,635
Intel
Corp.
4.88%,
02/10/28
............
60
60,964
4.10%,
05/19/46
............
9
7,632
5.70%,
02/10/53
............
18
18,371
International
Business
Machines
Corp.,
7.00%
,
10/30/25
............
8
8,479
Interpublic
Group
of
Cos.,
Inc.
(The)
4.65%,
10/01/28
............
8
7,849
4.75%,
03/30/30
............
8
7,856
JPMorgan
Chase
&
Co.
(b)
(1-Day
SOFR
+
1.02%),
2.07%,
06/01/29
...............
38
32,972
(1-Day
SOFR
+
1.75%),
4.57%,
06/14/30
...............
27
26,283
(1-Day
SOFR
+
1.25%),
2.58%,
04/22/32
...............
10
8,416
(1-Day
SOFR
+
1.26%),
2.96%,
01/25/33
...............
16
13,681
(1-Day
SOFR
+
1.80%),
4.59%,
04/26/33
...............
151
146,217
KLA
Corp.
3.30%,
03/01/50
............
52
39,748
5.25%,
07/15/62
............
25
25,308
L3Harris
Technologies,
Inc.
2.90%,
12/15/29
............
72
63,640
1.80%,
01/15/31
............
141
113,967
Lam
Research
Corp.,
4.88%
,
03/15/49
25
24,759
Lamar
Media
Corp.,
3.75%
,
02/15/28
2
1,845
Lowe's
Cos.,
Inc.
5.50%,
10/15/35
............
8
8,178
2.80%,
09/15/41
............
30
21,264
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
37
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Marsh
&
McLennan
Cos.,
Inc.,
5.45%
,
03/15/53
.................
USD
15
$
15,448
Masonite
International
Corp.,
5.38%
,
02/01/28
(a)
................
2
1,910
Medline
Borrower
LP,
3.88%
,
04/01/29
(a)
................
10
8,675
MidAmerican
Energy
Co.
3.65%,
04/15/29
............
63
60,090
4.25%,
07/15/49
............
35
31,278
Moody's
Corp.
4.25%,
08/08/32
............
57
54,882
3.75%,
02/25/52
............
8
6,394
Morgan
Stanley
(b)
(1-Day
SOFR
+
1.14%),
2.70%,
01/22/31
...............
442
380,652
(1-Day
SOFR
+
2.56%),
6.34%,
10/18/33
...............
20
21,844
Motorola
Solutions,
Inc.
5.60%,
06/01/32
............
105
105,612
5.50%,
09/01/44
............
49
46,510
National
Retail
Properties,
Inc.,
3.00%
,
04/15/52
.................
34
21,248
Navient
Corp.
5.88%,
10/25/24
............
2
1,943
6.75%,
06/25/25
............
2
1,944
6.75%,
06/15/26
............
2
1,950
Newmont
Corp.,
2.25%
,
10/01/30
...
41
34,443
Nexstar
Media,
Inc.,
5.63%
,
07/15/27
(a)
4
3,696
Norfolk
Southern
Corp.
3.65%,
08/01/25
............
4
3,888
3.00%,
03/15/32
............
27
23,730
3.94%,
11/01/47
............
27
22,117
3.05%,
05/15/50
............
16
11,074
4.55%,
06/01/53
............
9
8,090
Northern
States
Power
Co.,
2.60%
,
06/01/51
.................
37
24,572
NRG
Energy,
Inc.
2.45%,
12/02/27
(a)
...........
32
27,378
5.75%,
01/15/28
............
2
1,961
5.25%,
06/15/29
(a)
...........
2
1,857
NSTAR
Electric
Co.,
3.95%
,
04/01/30
13
12,587
Nucor
Corp.,
3.95%
,
05/01/28
.....
26
25,016
Ohio
Power
Co.
Series
P,
2.60%,
04/01/30
.....
5
4,335
Series
R,
2.90%,
10/01/51
.....
22
15,023
Omnicom
Group,
Inc.,
2.60%
,
08/01/31
5
4,246
Oncor
Electric
Delivery
Co.
LLC
3.70%,
11/15/28
............
69
66,794
3.10%,
09/15/49
............
36
26,484
Oracle
Corp.
4.30%,
07/08/34
............
20
18,339
3.60%,
04/01/40
............
129
100,122
4.00%,
07/15/46
............
14
10,682
4.00%,
11/15/47
............
4
3,051
3.60%,
04/01/50
............
123
87,243
3.95%,
03/25/51
............
32
24,079
5.55%,
02/06/53
............
15
14,281
4.10%,
03/25/61
............
7
5,149
Outfront
Media
Capital
LLC,
5.00%
,
08/15/27
(a)
................
4
3,603
Owens
Corning,
3.95%
,
08/15/29
...
26
24,493
Paramount
Global,
4.38%
,
03/15/43
.
20
14,212
PECO
Energy
Co.
2.85%,
09/15/51
............
29
19,809
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
4.38%,
08/15/52
............
USD
10
$
9,049
Penske
Truck
Leasing
Co.
LP,
5.88%
,
11/15/27
(a)
................
55
56,164
Pfizer,
Inc.,
1.75%
,
08/18/31
......
38
31,345
Piedmont
Natural
Gas
Co.,
Inc.,
2.50%
,
03/15/31
.................
11
9,177
Post
Holdings,
Inc.
(a)
5.63%,
01/15/28
............
3
2,940
5.50%,
12/15/29
............
2
1,885
Prologis
LP
3.25%,
10/01/26
............
22
21,257
3.88%,
09/15/28
............
7
6,768
Public
Service
Co.
of
New
Hampshire,
5.15%
,
01/15/53
............
18
18,239
Public
Service
Electric
&
Gas
Co.
3.70%,
05/01/28
............
28
26,976
4.90%,
12/15/32
............
36
36,829
3.60%,
12/01/47
............
6
4,818
QUALCOMM,
Inc.
4.25%,
05/20/32
............
23
23,009
6.00%,
05/20/53
............
57
64,760
Realty
Income
Corp.,
3.25%
,
01/15/31
6
5,285
Republic
Services,
Inc.,
3.95%
,
05/15/28
.................
24
23,334
RHP
Hotel
Properties
LP,
4.75%
,
10/15/27
.................
2
1,874
S&P
Global,
Inc.,
4.75%
,
08/01/28
..
34
34,497
Salesforce,
Inc.,
3.05%
,
07/15/61
...
12
8,235
San
Diego
Gas
&
Electric
Co.,
5.35%
,
04/01/53
.................
15
15,448
Select
Medical
Corp.,
6.25%
,
08/15/26
(a)
................
2
1,940
Sherwin-Williams
Co.
(The),
2.30%
,
05/15/30
.................
23
19,517
Sirius
XM
Radio,
Inc.,
5.50%
,
07/01/29
(a)
................
4
3,640
Southern
California
Edison
Co.
Series
A,
4.20%,
03/01/29
.....
64
61,882
2.25%,
06/01/30
............
43
36,525
5.95%,
11/01/32
............
40
43,330
Southwestern
Public
Service
Co.,
Series
8,
3.15%
,
05/01/50
......
26
18,719
Standard
Industries,
Inc.
(a)
5.00%,
02/15/27
............
2
1,900
4.75%,
01/15/28
............
2
1,868
TEGNA,
Inc.
4.63%,
03/15/28
............
2
1,745
5.00%,
09/15/29
............
2
1,729
Tenet
Healthcare
Corp.
4.88%,
01/01/26
............
6
5,882
5.13%,
11/01/27
............
2
1,920
4.38%,
01/15/30
............
3
2,693
Thermo
Fisher
Scientific,
Inc.,
4.95%
,
11/21/32
..................
33
34,244
T-Mobile
USA,
Inc.,
4.75%
,
02/01/28
.
217
214,224
Transcontinental
Gas
Pipe
Line
Co.
LLC
4.60%,
03/15/48
............
42
36,871
3.95%,
05/15/50
............
38
30,211
Union
Pacific
Corp.
3.55%,
05/20/61
............
40
30,275
2.97%,
09/16/62
............
9
5,952
UnitedHealth
Group,
Inc.
4.25%,
06/15/48
............
7
6,303
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
38
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
2.90%,
05/15/50
............
USD
28
$
19,833
6.05%,
02/15/63
............
26
29,602
5.20%,
04/15/63
............
7
7,088
Verisk
Analytics,
Inc.,
5.75%
,
04/01/33
5
5,249
Verizon
Communications,
Inc.
2.55%,
03/21/31
............
166
141,414
2.36%,
03/15/32
............
90
73,836
4.27%,
01/15/36
............
67
62,151
2.65%,
11/20/40
............
45
32,130
3.70%,
03/22/61
............
12
8,948
VICI
Properties
LP
4.25%,
12/01/26
(a)
...........
55
51,316
3.75%,
02/15/27
(a)
...........
40
36,926
4.75%,
02/15/28
............
56
53,083
4.63%,
12/01/29
(a)
...........
38
34,592
4.95%,
02/15/30
............
38
35,658
VMware,
Inc.,
4.70%
,
05/15/30
....
69
66,984
Walt
Disney
Co.
(The),
4.75%
,
09/15/44
.................
24
23,361
Waste
Pro
USA,
Inc.,
5.50%
,
02/15/26
(a)
................
2
1,839
WP
Carey,
Inc.
3.85%,
07/15/29
............
5
4,600
2.40%,
02/01/31
............
13
10,609
9,047,683
Total
Corporate
Bonds
—
28.4%
(Cost:
$13,045,496)
..............................
11,978,673
Foreign
Government
Obligations
Mexico
—
0.4%
United
Mexican
States,
2.66%
,
05/24/31
.................
200
167,400
Panama
—
0.4%
Republic
of
Panama,
3.88%
,
03/17/28
200
191,475
Peru
—
0.1%
Republic
of
Peru,
3.55%
,
03/10/51
..
35
25,567
Uruguay
—
0.1%
Oriental
Republic
of
Uruguay,
5.10%
,
06/18/50
.................
25
25,075
Total
Foreign
Government
Obligations
—
1.0%
(Cost:
$474,491)
................................
409,517
Municipal
Bonds
California
-
0.4%
Bay
Area
Toll
Authority
,
Series
2010S-1,
RB,
7.04%, 04/01/50
.........
20
26,317
Los
Angeles
Community
College
District
,
Series
2010E,
GO,
6.60%, 08/01/42
............
5
6,288
Los
Angeles
Unified
School
District
,
Series
2010RY,
GO,
6.76%, 07/01/34
............
20
23,157
State
of
California
,
Series
2018,
GO,
4.60%, 04/01/38
............
70
67,817
University
of
California
,
Series
2012AD,
RB,
4.86%, 05/15/12
.........
5
4,524
128,103
Security
Par
(000)
Par
(000)
Value
Illinois
-
0.1%
State
of
Illinois
,
Series
2003,
GO,
5.10%, 06/01/33
............
USD
40
$
39,854
New
Jersey
-
0.0%
New
Jersey
Turnpike
Authority
,
Series
2009F,
RB,
7.41%, 01/01/40
....
8
10,058
New
York
-
0.0%
Metropolitan
Transportation
Authority
,
Series
2009A-1,
RB,
5.87%, 11/15/39
............
10
10,031
New
York
City
Municipal
Water
Finance
Authority
,
Series
2010EE,
RB,
6.01%, 06/15/42
............
5
5,756
Port
Authority
of
New
York
&
New
Jersey
,
Series
2011-168,
RB,
4.93%, 10/01/51
............
15
15,295
31,082
Ohio
-
0.0%
American
Municipal
Power,
Inc.
,
Series
2010A,
RB,
8.08%, 02/15/50
....
10
13,717
Texas
-
0.1%
City
of
San
Antonio
Electric
&
Gas
Systems
,
Series
2010A,
RB,
5.81%, 02/01/41
............
10
10,974
State
of
Texas
,
Series
2009A,
GO,
5.52%, 04/01/39
............
15
16,499
27,473
Total
Municipal
Bonds
—
0.6%
(Cost:
$308,960)
................................
250,287
Non-Agency
Mortgage-Backed
Securities
Collateralized
Mortgage
Obligations
—
0.4%
United
States
—
0.4%
Alternative
Loan
Trust
(b)
Series
2006-OA6,
Class
1A1A,
(1-
mo.
LIBOR
USD
at
0.42%
Floor
+
0.42%),
5.27%,
07/25/46
...
18
15,085
Series
2006-OC10,
Class
2A3,
(1-
mo.
LIBOR
USD
at
0.46%
Floor
+
0.46%),
5.31%,
11/25/36
...
190
157,158
172,243
Commercial
Mortgage-Backed
Securities
—
4.3%
Cayman
Islands
—
0.3%
MF1
Multifamily
Housing
Mortgage
Loan
Trust,
Series
2021-W10,
Class
G,
(1-mo.
CME
Term
SOFR
at
4.22%
Floor
+
4.22%),
9.05%,
12/15/34
(a)(b)
...............
125
113,942
United
States
—
4.0%
1211
Avenue
of
the
Americas
Trust,
Series
2015-1211,
Class
A1A2,
3.90%,
08/10/35
(a)
...........
250
233,687
BANK,
Series
2022-BNK41,
Class
A4,
3.79%,
04/15/65
(b)
...........
80
72,397
Beast
Mortgage
Trust,
Series
2021-
SSCP,
Class
A,
(1-mo.
LIBOR
USD
at
0.75%
Floor
+
0.75%),
5.43%,
04/15/36
(a)(b)
...............
30
28,510
BX
Commercial
Mortgage
Trust
(a)(b)
Series
2020-VKNG,
Class
A,
(1-mo.
CME
Term
SOFR
at
1.04%
Floor
+
1.04%),
5.87%,
10/15/37
...
113
110,764
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
39
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Series
2021-SOAR,
Class
A,
(1-mo.
LIBOR
USD
at
0.67%
Floor
+
0.67%),
5.36%,
06/15/38
....
USD
59
$
56,752
Series
2022-LP2,
Class
A,
(1-mo.
CME
Term
SOFR
at
1.01%
Floor
+
1.01%),
5.84%,
02/15/39
...
56
53,626
BX
Trust,
Series
2022-IND,
Class
A,
(1-mo.
CME
Term
SOFR
at
1.49%
Floor
+
1.49%),
6.32%,
04/15/37
(a)(b)
56
54,734
Commercial
Mortgage
Trust,
Series
2013-300P,
Class
D,
4.39%,
08/10/30
(a)(b)
...............
25
21,250
Credit
Suisse
Mortgage
Capital
Certificates,
Series
2019-ICE4,
Class
A,
(1-mo.
LIBOR
USD
at
0.98%
Floor
+
0.98%),
5.66%,
05/15/36
(a)(b)
...............
60
59,245
DBGS
Mortgage
Trust,
Series
2018-
BIOD,
Class
A,
(1-mo.
LIBOR
USD
at
0.80%
Floor
+
0.80%),
5.49%,
05/15/35
(a)(b)
...............
55
53,859
Grace
Trust,
Series
2020-GRCE,
Class
D,
2.68%,
12/10/40
(a)(b)
........
250
171,918
GS
Mortgage
Securities
Corp.
Trust,
Series
2021-DM,
Class
F,
(1-mo.
LIBOR
USD
at
3.44%
Floor
+
3.44%),
8.12%,
11/15/36
(a)(b)
....
50
44,961
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
(a)(b)
Series
2021-MHC,
Class
D,
(1-mo.
LIBOR
USD
at
1.70%
Floor
+
1.70%),
6.38%,
04/15/38
....
250
234,941
Series
2022-OPO,
Class
D,
3.45%,
01/05/39
...............
80
58,633
SUMIT
Mortgage
Trust,
Series
2022-
BVUE,
Class
D,
2.89%,
02/12/41
(a)(b)
40
28,938
Velocity
Commercial
Capital
Loan
Trust,
Series
2021-4,
Class
M4,
4.48%,
12/26/51
(a)(b)
..........
465
341,204
Wells
Fargo
Commercial
Mortgage
Trust,
Series
2021-C60,
Class
A4,
2.34%,
08/15/54
............
80
64,921
1,690,340
1,804,282
Total
Non-Agency
Mortgage-Backed
Securities
—
4.7%
(Cost:
$2,258,274)
..............................
1,976,525
Preferred
Securities
Capital
Trusts
—
0.0%
United
States
—
0.0%
State
Street
Corp.,
Series
H
,
(3-mo.
LIBOR
USD
+
2.54%),
5.63%
(b)(e)(f)
27
25,184
Total
Capital
Trusts
—
0.0%  
(Cost:
$27,497)
................................
25,184
Security
Par
(000)
Pa
r
(
000)
Value
U.S.
Government
Sponsored
Agency
Securities
Commercial
Mortgage-Backed
Securities
—
0.1%
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes,
Series
2018-
W5FX,
Class
CFX,
(1-mo.
LIBOR
USD
+
0.00%),
3.42%, 04/25/28
(a)(b)
USD
50
$
41,790
Mortgage-Backed
Securities
—
50.1%
Federal
National
Mortgage
Association,
3.00%, 12/01/50
............
680
616,788
Government
National
Mortgage
Association
2.00%
,
 08/20/50
-
11/20/50
...
113
96,646
2.50%
,
 10/20/51
-
12/20/51
...
186
163,406
3.00%
,
 03/20/52
..........
283
257,916
3.50%
,
 03/20/52
..........
60
57,058
4.00%
,
 03/20/52
..........
16
15,646
2.00%
,
 04/15/53
(g)
.........
510
432,972
2.50%
,
 04/15/53
(g)
.........
495
435,600
3.00%
,
 04/15/53
(g)
.........
198
180,076
3.50%
,
 04/15/53
(g)
.........
300
280,957
4.00%
,
 04/15/53
(g)
.........
1,989
1,914,405
4.50%
,
 04/15/53
(g)
.........
161
158,577
5.00%
,
 04/15/53
(g)
.........
92
92,115
5.50%
,
 04/15/53
(g)
.........
38
38,430
6.00%
,
 04/15/53
(g)
.........
36
36,671
Uniform
Mortgage-Backed
Securities
1.50%
,
 04/25/38
-
04/25/53
(g)
..
735
611,131
2.00%
,
 04/25/38
-
04/25/53
(g)
..
1,221
1,053,479
2.50%
,
 04/25/38
-
04/25/53
(g)
..
1,169
1,024,210
3.00%
,
 04/25/38
-
05/25/53
(g)
..
1,819
1,640,579
3.50%
,
 04/25/38
-
04/25/53
(g)
..
1,127
1,049,283
4.00%
,
 09/01/47
-
04/01/52
...
1,161
1,116,724
4.50%
,
 06/01/50
..........
250
248,745
2.50%
,
 09/01/50
-
12/01/51
...
2,986
2,585,445
2.00%
,
 10/01/51
-
11/01/51
...
2,786
2,307,462
3.00%
,
 11/01/51
..........
251
230,207
3.50%
,
 11/01/51
..........
943
899,970
6.00%
,
 01/01/53
-
03/01/53
...
354
367,286
4.50%
,
 04/25/53
(g)
.........
305
299,230
5.00%
,
 04/25/53
(g)
.........
1,356
1,351,900
5.50%
,
 04/25/53
(g)
.........
791
798,987
6.00%
,
 04/25/53
(g)
.........
745
760,293
21,122,194
Total
U.S.
Government
Sponsored
Agency
Securities
—
50.2%  
(Cost:
$22,062,938)
..............................
21,163,984
U.S.
Treasury
Obligations
U.S.
Treasury
Bonds
4.50%, 08/15/39
............
208
231,422
1.13%, 05/15/40
-
08/15/40
.....
412
273,240
4.38%, 05/15/40
............
104
113,692
1.38%, 11/15/40
............
206
141,891
1.75%, 08/15/41
............
206
149,157
2.75%, 11/15/47
............
298
247,922
3.00%, 02/15/48
-
08/15/52
.....
403
351,907
3.38%, 11/15/48
............
378
353,297
2.38%, 05/15/51
............
316
242,807
2.00%, 08/15/51
............
63
43,962
1.88%, 11/15/51
............
3
1,907
2.88%, 05/15/52
............
172
147,141
4.00%, 11/15/52
............
23
24,409
3.63%, 02/15/53
............
12
11,914
U.S.
Treasury
Inflation
Linked
Notes
,
1.63%, 10/15/27
............
853
869,683
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
40
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Security
Par
(000)
Par
(000)
Value
U.S.
Treasury
Obligations
(continued)
U.S.
Treasury
Notes
2.50%, 04/30/24
............
USD
997
$
975,035
4.38%, 10/31/24
............
44
44,052
0.75%, 11/15/24
............
42
39,705
2.63%, 04/15/25
............
208
202,522
2.75%, 05/15/25
-
08/15/32
.....
1,840
1,741,891
4.50%, 11/15/25
............
33
33,487
4.00%, 12/15/25
-
02/28/30
.....
1,419
1,452,882
0.88%, 09/30/26
............
92
83,317
1.13%, 10/31/26
............
58
52,900
1.25%, 11/30/26
-
08/15/31
.....
709
613,668
1.50%, 01/31/27
............
7
6,444
1.88%, 02/28/27
-
02/28/29
.....
28
26,028
0.63%, 03/31/27
............
189
167,560
0.50%, 04/30/27
-
08/31/27
.....
520
456,534
0.38%, 09/30/27
............
103
89,067
4.13%, 09/30/27
-
11/15/32
.....
95
98,898
3.50%, 01/31/28
-
02/15/33
.....
131
130,613
1.75%, 01/31/29
............
10
9,027
2.88%, 04/30/29
............
44
42,245
3.88%, 09/30/29
-
12/31/29
.....
1,200
1,219,934
1.63%, 05/15/31
............
206
179,035
Total
U.S.
Treasury
Obligations
—
25.8%
(Cost:
$11,341,219)
..............................
10,869,195
Total
Long-Term
Investments
—
123.7%
(Cost:
$55,303,373)
..............................
52,147,643
Shares
Shares
Short-Term
Securities
Money
Market
Funds
—
4.7%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
4.70%
(h)(
i
)
....
1,962,807
1,962,807
Total
Short-Term
Securities
—
4.7%
(Cost:
$1,962,807)
..............................
1,962,807
Total
Options
Purchased
—
0.3%
(Cost:
$135,966
)
................................
127,679
Total
Investments
Before
Options
Written
and
TBA
Sale
Commitments
—
128.7%
(Cost:
$57,402,146)
..............................
54,238,129
Total
Options
Written
—
(0.4)%
(Premiums
Received
—
$(196,950))
..................
(165,762)
Par
(000)
Pa
r
(
000)
TBA
Sale
Commitments
(g)
Government
National
Mortgage
Association,
2.50%, 04/15/53
....
(43)
(37,840)
Uniform
Mortgage-Backed
Securities
2.00%
,
 04/25/53
-
05/25/53
.....
(1,315)
(1,087,475)
2.50%
,
 04/25/53
-
05/25/53
.....
(1,394)
(1,201,527)
3.00%
,
 04/25/53
............
(243)
(217,821)
3.50%
,
 04/25/53
-
05/25/53
.....
(705)
(655,153)
4.00%
,
 04/25/53
............
(493)
(471,510)
4.50%
,
 04/25/53
............
(1,450)
(1,420,704)
5.00%
,
 04/25/53
............
(972)
(969,219)
5.50%
,
 04/25/53
............
(633)
(639,392)
Security
Par
(000)
Par
(000)
Value
TBA
Sale
Commitments
(g)
(continued)
6.00%
,
 04/25/53
............
USD
(645)
$
(658,226)
Total
TBA
Sale
Commitments
—
(17.5)%
(Proceeds:
$(7,314,260))
..........................
(7,358,867)
Total
Investments
Net
of
Options
Written
and
TBA
Sale
Commitments
—
110.8%
(Cost:
$49,890,936)
..............................
46,713,500
Liabilities
in
Excess
of
Other
Assets
—
(10.8)%
...........
(4,563,910)
Net
Assets
—
100.0%
..............................
$
42,149,590
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
41
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the six
months
ended
March
31,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
(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)
Non-income
producing
security.
(g)
Represents
or
includes
a
TBA
transaction.
(h)
Annualized
7-day
yield
as
of
period
end.
(i)
Affiliate
of
the
Fund.
Affiliated
Issuer
Value
at
09/30/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
03/31/23
Shares
Held
at
03/31/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
...
$
2,006,214
$
—
$
(43,407)
(a)
$
—
$
—
$
1,962,807
1,962,807
$
84,931
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
42
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
Euro-Bund
..............................................................
1
06/08/23
$
147
$
4,935
U.S.
Treasury
Long
Bond
.....................................................
7
06/21/23
920
7,240
U.S.
Treasury
Ultra
Bond
.....................................................
2
06/21/23
283
10,996
U.S.
Treasury
2
Year
Note
....................................................
5
06/30/23
1,033
717
U.S.
Treasury
5
Year
Note
....................................................
31
06/30/23
3,399
55,034
78,922
Short
Contracts
Euro-
Bobl
...............................................................
10
06/08/23
1,278
(29,389)
Euro-BTP
...............................................................
2
06/08/23
250
(8,314)
Euro-Schatz
.............................................................
1
06/08/23
115
(1,100)
Japan
10
Year
Bond
........................................................
1
06/13/23
1,116
(20,294)
U.S.
Treasury
10
Year
Note
...................................................
21
06/21/23
2,416
(46,420)
U.S.
Treasury
10
Year
Ultra
Note
...............................................
12
06/21/23
1,455
(33,261)
3-mo.
SOFR
.............................................................
1
03/19/24
239
143
(138,635)
$
(59,713)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
USD
9,765
JPY
1,281,000
Deutsche
Bank
AG
06/21/23
$
4
USD
19,433
EUR
18,000
Morgan
Stanley
&
Co.
International
plc
06/21/23
(176)
USD
2,101,747
EUR
1,947,000
UBS
AG
06/21/23
(19,285)
(19,461)
$
(19,457)
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
3-mo.
SOFR
Interest
Futures
....................
29
04/14/23
USD
95.81
USD
7,250
$
725
OTC
Currency
Options
Purchased
Description
Counterparty
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
EUR
Currency
...........................
Goldman
Sachs
International
06/29/23
USD
1.08
EUR
483
$
5,392
$
—
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
43
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
OTC
Dual
Binary
Options
Purchased
Description
(a)
Counterparty
Units
Expiration
Date
Notional
Amount
(000)
Value
Put
Payout
at
expiry
if
USDJPY
<
128.51
and
JPY
TONAR
10-Year
>
0.89
................
Citibank
NA
12,000
06/30/23
USD
1,542
$
1,200
(a)
Option
only
pays
if
both
terms
are
met
on
the
expiration
date.
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
3.29%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
02/14/24
3.29
%
USD
565
$
25,242
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.31%
Semi-Annual
Bank
of
America
NA
02/15/24
3.31
USD
272
12,390
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.32%
Semi-Annual
Bank
of
America
NA
02/15/24
3.32
USD
281
13,019
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.00%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
03/28/24
3.00
USD
306
10,757
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.09%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
03/27/26
3.09
USD
27
1,481
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.08%
Semi-Annual
Bank
of
America
NA
03/30/26
3.08
USD
93
5,014
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.10%
Semi-Annual
Citibank
NA
03/30/26
3.10
USD
82
4,516
72,419
Put
10-Year
Interest
Rate
Swap
(a)
3.29%
Semi-Annual
1-day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
02/14/24
3.29
USD
565
13,938
10-Year
Interest
Rate
Swap
(a)
3.32%
Semi-Annual
1-day
SOFR
Annual
Bank
of
America
NA
02/15/24
3.32
USD
281
6,674
10-Year
Interest
Rate
Swap
(a)
3.31%
Semi-Annual
1-day
SOFR
Annual
Bank
of
America
NA
02/15/24
3.31
USD
272
6,583
10-Year
Interest
Rate
Swap
(a)
3.00%
Semi-Annual
1-day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
03/28/24
3.00
USD
306
10,756
10-Year
Interest
Rate
Swap
(a)
3.09%
Semi-Annual
1-day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
03/27/26
3.09
USD
27
1,341
10-Year
Interest
Rate
Swap
(a)
3.08%
Semi-Annual
1-day
SOFR
Annual
Bank
of
America
NA
03/30/26
3.08
USD
93
4,615
10-Year
Interest
Rate
Swap
(a)
3.10%
Semi-Annual
1-day
SOFR
Annual
Citibank
NA
03/30/26
3.10
USD
82
4,036
47,943
$
120,362
(a)
Forward
settling
swaption.
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
3-mo.
SOFR
Interest
Futures
.....................
39
04/14/23
USD
95.13
USD
9,750
$
(244)
OTC
Currency
Options
Written
Description
Counterparty
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
EUR
Currency
.............................
Goldman
Sachs
International
06/29/23
USD
1.02
EUR
483
$
(885)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
44
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
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)
3.11%
Semi-Annual
1-day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
12/19/23
3.11
%
USD
778
$
(25,211)
10-Year
Interest
Rate
Swap
(a)
3.16%
Semi-Annual
1-day
SOFR
Annual
Deutsche
Bank
AG
01/04/24
3.16
USD
243
(8,744)
10-Year
Interest
Rate
Swap
(a)
3.15%
Semi-Annual
1-day
SOFR
Annual
JPMorgan
Chase
Bank
NA
01/08/24
3.15
USD
243
(8,667)
10-Year
Interest
Rate
Swap
(a)
3.11%
Semi-Annual
1-day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
01/10/24
3.11
USD
668
(22,578)
10-Year
Interest
Rate
Swap
(a)
2.95%
Semi-Annual
1-day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
03/13/26
2.95
USD
45
(2,192)
10-Year
Interest
Rate
Swap
(a)
3.02%
Semi-Annual
1-day
SOFR
Annual
Goldman
Sachs
International
03/16/26
3.02
USD
107
(5,523)
10-Year
Interest
Rate
Swap
(a)
3.12%
Semi-Annual
1-day
SOFR
Annual
Goldman
Sachs
International
03/16/26
3.12
USD
94
(5,228)
10-Year
Interest
Rate
Swap
(a)
3.14%
Semi-Annual
1-day
SOFR
Annual
Goldman
Sachs
International
03/16/26
3.14
USD
124
(7,006)
10-Year
Interest
Rate
Swap
(a)
3.13%
Semi-Annual
1-day
SOFR
Annual
Bank
of
America
NA
03/23/26
3.13
USD
42
(2,358)
(87,507)
Put
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.11%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
12/19/23
3.11
USD
778
(22,946)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.16%
Semi-Annual
Deutsche
Bank
AG
01/04/24
3.16
USD
243
(6,734)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.15%
Semi-Annual
JPMorgan
Chase
Bank
NA
01/08/24
3.15
USD
243
(6,870)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.11%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
01/10/24
3.11
USD
668
(20,113)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
2.95%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
03/13/26
2.95
USD
45
(2,435)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.02%
Semi-Annual
Goldman
Sachs
International
03/16/26
3.02
USD
107
(5,530)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.12%
Semi-Annual
Goldman
Sachs
International
03/16/26
3.12
USD
94
(4,559)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.14%
Semi-Annual
Goldman
Sachs
International
03/16/26
3.14
USD
124
(5,932)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.13%
Semi-Annual
Bank
of
America
NA
03/23/26
3.13
USD
42
(2,007)
(77,126)
$
(164,633)
(a)
Forward
settling
swaption.
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)
0.21%
Annual
1-day
TONAR
Annual
N/A
02/03/25
JPY
6,998
$
(95)
$
—
$
(95)
0.20%
Annual
1-day
TONAR
Annual
N/A
02/03/25
JPY
6,998
(90)
—
(90)
0.39%
Annual
1-day
TONAR
Annual
N/A
05/02/32
JPY
7,208
770
—
770
0.42%
Annual
1-day
TONAR
Annual
N/A
06/14/32
JPY
16,108
1,515
—
1,515
0.33%
Annual
1-day
TONAR
Annual
N/A
08/01/32
JPY
12,427
2,146
—
2,146
0.57%
Annual
1-day
TONAR
Annual
N/A
10/17/32
JPY
15,443
311
—
311
3.15%
Annual
1-day
SOFR
Annual
02/14/28
(a)
02/14/33
USD
11
(67)
—
(67)
1-day
ESTR
Annual
2.69%
Annual
02/15/28
(a)
02/15/33
EUR
10
6
—
6
3.46%
Annual
1-day
SOFR
Annual
N/A
02/15/33
USD
49
(1,017)
—
(1,017)
0.89%
Annual
1-day
TONAR
Annual
N/A
02/15/33
JPY
4,090
(758)
—
(758)
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
45
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
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)
0.90%
Annual
1-day
TONAR
Annual
N/A
02/15/33
JPY
4,090
$
(796)
$
—
$
(796)
0.90%
Annual
1-day
TONAR
Annual
N/A
02/15/33
JPY
8,179
(1,606)
—
(1,606)
0.92%
Annual
1-day
TONAR
Annual
N/A
02/15/33
JPY
11,846
(2,479)
—
(2,479)
3.49%
Annual
1-day
SOFR
Annual
N/A
02/17/33
USD
147
(3,500)
—
(3,500)
3.62%
Annual
1-day
SOFR
Annual
N/A
02/23/33
USD
98
(3,383)
—
(3,383)
3.28%
Annual
1-day
SOFR
Annual
02/24/28
(a)
02/24/33
USD
11
(122)
—
(122)
1-day
ESTR
Annual
2.95%
Annual
03/02/28
(a)
03/02/33
EUR
5
58
—
58
3.45%
Annual
1-day
SOFR
Annual
03/02/28
(a)
03/02/33
USD
5
(98)
—
(98)
3.35%
Annual
1-day
SOFR
Annual
03/03/28
(a)
03/03/33
USD
5
(73)
—
(73)
3.28%
Annual
1-day
SOFR
Annual
03/03/28
(a)
03/03/33
USD
5
(57)
—
(57)
3.78%
Annual
1-day
SOFR
Annual
N/A
03/06/33
USD
147
(7,235)
—
(7,235)
1-day
SOFR
Annual
3.11%
Annual
N/A
03/14/33
USD
98
(765)
39
(804)
1-day
SOFR
Annual
3.31%
Annual
N/A
03/15/33
USD
81
717
—
717
1-day
SOFR
Annual
3.31%
Annual
N/A
03/15/33
USD
66
599
—
599
1-day
SOFR
Annual
3.21%
Annual
N/A
03/17/33
USD
74
80
—
80
1-day
SOFR
Annual
3.22%
Annual
N/A
03/17/33
USD
74
99
—
99
3.35%
Annual
1-day
SOFR
Annual
N/A
03/20/33
USD
22
(282)
—
(282)
1-day
ESTR
Annual
2.74%
Annual
03/22/28
(a)
03/22/33
EUR
5
13
—
13
3.13%
Annual
1-day
SOFR
Annual
03/22/28
(a)
03/22/33
USD
5
(27)
—
(27)
3-mo.
BA
Semi-Annual
3.30%
Semi-Annual
N/A
03/27/33
CAD
3
(4)
—
(4)
3-mo.
BA
Semi-Annual
3.35%
Semi-Annual
N/A
03/30/33
CAD
6
12
(14)
26
2.37%
Annual
1-day
SOFR
Annual
02/03/43
(a)
02/03/53
USD
4
(1)
—
(1)
2.37%
Annual
1-day
SOFR
Annual
02/09/43
(a)
02/09/53
USD
4
(1)
—
(1)
2.47%
Annual
1-day
SOFR
Annual
02/10/43
(a)
02/10/53
USD
5
(26)
—
(26)
2.41%
Annual
1-day
SOFR
Annual
02/17/43
(a)
02/17/53
USD
5
(12)
—
(12)
3.37%
Semi-Annual
3-mo.
BA
Semi-Annual
N/A
03/27/53
CAD
1
2
—
2
3.40%
Semi-Annual
3-mo.
BA
Semi-Annual
N/A
03/30/53
CAD
3
(8)
8
(16)
$
(16,174)
$
33
$
(16,207)
(a)
Forward
swap.
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
$
(437)
$
(330)
$
(107)
$
–
$
–
$
–
OTC
Total
Return
Swaps
Paid
by
the
Fund
Received
by
the
Fund
Rate/Reference
Frequency
Rate/Reference
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
1-day
SOFR
.......
Quarterly
iBoxx
USD
Liquid
Investment
Grade
Total
Return
Index
At
Termination
JPMorgan
Chase
Bank
NA
06/20/23
USD
317
$
3,466
$
(2,991)
$
6,457
1-day
SOFR
.......
Quarterly
iBoxx
USD
Liquid
Investment
Grade
Total
Return
Index
At
Termination
JPMorgan
Chase
Bank
NA
06/20/23
USD
316
4,768
(2,981)
7,749
$
8,234
$
(5,972)
$
14,206
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
46
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
1-day
ESTR
.........................................
Euro
Short-Term
Rate
993.30
%
1-day
SOFR
.........................................
Secured
Overnight
Financing
Rate
4.87
1-day
TONAR
........................................
Tokyo
Overnight
Average
Rate
(0.03)
3-mo.
BA
...........................................
Canadian
Bankers
Acceptances
5.06
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)
............................................
$
47
$
(14)
$
6,342
$
(22,549)
$
—
OTC
Swaps
.....................................................
—
(6,302)
14,206
(107)
—
Options
Written
...................................................
N/A
N/A
31,330
(142)
(165,762)
(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)
.....
$
—
$
—
$
—
$
—
$
79,065
$
—
$
79,065
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
4
—
—
4
Options
purchased
(b)
Investments
at
value
—
unaffiliated
(c)
...........
—
—
—
5,392
121,087
1,200
127,679
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
6,342
—
6,342
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
—
—
—
14,206
—
14,206
$
—
$
—
$
—
$
5,396
$
220,700
$
1,200
$
227,296
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
$
—
$
—
$
—
$
—
$
138,778
$
—
$
138,778
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
19,461
—
—
19,461
Options
written
(b)
Options
written
at
value
.....................
—
—
—
885
164,877
—
165,762
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
22,549
—
22,549
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
437
—
—
5,972
—
6,409
$
—
$
437
$
—
$
20,346
$
332,176
$
—
$
352,959
(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.
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
47
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
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
For
the
period
ended
March
31,
2023,
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
.......................
$
—
$
—
$
—
$
—
$
164,620
$
—
$
164,620
Forward
foreign
currency
exchange
contracts
....
—
—
—
(194,046)
—
—
(194,046)
Options
purchased
(a)
....................
—
—
—
(15,729)
36,729
—
21,000
Options
written
........................
—
—
—
15,459
(170,880)
—
(155,421)
Swaps
..............................
—
(11,353)
—
—
36,815
3,166
28,628
$
—
$
(11,353)
$
—
$
(194,316)
$
67,284
$
3,166
$
(135,219)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
101,453
$
—
$
101,453
Forward
foreign
currency
exchange
contracts
....
—
—
—
(115,529)
—
—
(115,529)
Options
purchased
(b)
....................
—
—
—
(4,015)
(68,578)
—
(72,593)
Options
written
........................
—
—
—
2,714
177,741
—
180,455
Swaps
..............................
—
1,204
—
—
2,730
—
3,934
$
—
$
1,204
$
—
$
(116,830)
$
213,346
$
—
$
97,720
(a)
Options
purchased
are
included
in
net
realized
gain
(loss)
from
investments
—
unaffiliated.
(b)
Options
purchased
are
included
in
net
change
in
unrealized
appreciation
(depreciation)
on
investments
—
unaffiliated.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
11,212,644
Average
notional
value
of
contracts
—
short
.................................................................................
$
4,305,805
Forward
foreign
currency
exchange
contracts
Average
amounts
purchased
—
in
USD
....................................................................................
$
2,107,827
Options
Average
value
of
option
contracts
purchased
................................................................................
$
3,659
Average
value
of
option
contracts
written
...................................................................................
$
565
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
$
7,487,252
Average
notional
value
of
swaption
contracts
written
...........................................................................
$
14,171,311
Credit
default
swaps
Average
notional
value
—
buy
protection
...................................................................................
$
16,741
Interest
rate
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
2,545,097
Average
notional
value
—
receives
fixed
rate
................................................................................
$
209,913
Inflation
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
—
(a)
Average
notional
value
—
receives
fixed
rate
................................................................................
$
—
(a)
Total
return
swaps
Average
notional
value
...............................................................................................
$
316,500
(a)
Derivative
financial
instrument
not
held
at
any
quarter-end.
The
risk
exposure
table
serves
as
an
indicator
of
activity
during
the
period.
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments
$
—
Futures
contracts
....................................................................................
$
21,737
$
19,085
Forward
foreign
currency
exchange
contracts
.................................................................
4
19,461
Options
(a)(b)
........................................................................................
127,679
165,762
Swaps
—
centrally
cleared
..............................................................................
232
—
Swaps
—
OTC
(c)
.....................................................................................
14,206
6,409
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
163,858
$
210,717
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(22,694)
(19,329)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
141,164
$
191,388
2023
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Sustainable
Total
Return
Fund
48
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
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.
(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
..............................
$
48,295
$
(4,365)
$
—
$
—
$
43,930
Citibank
NA
....................................
9,752
—
—
—
9,752
Deutsche
Bank
AG
...............................
4
(4)
—
—
—
Goldman
Sachs
International
........................
5,392
(5,392)
—
—
—
JPMorgan
Chase
Bank
NA
..........................
14,206
(14,206)
—
—
—
Morgan
Stanley
&
Co.
International
plc
..................
63,515
(63,515)
—
—
—
$
141,164
$
(87,482)
$
—
$
—
$
53,682
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
..............................
$
4,365
$
(4,365)
$
—
$
—
$
—
Deutsche
Bank
AG
...............................
15,478
(4)
—
—
15,474
Goldman
Sachs
International
........................
34,663
(5,392)
—
—
29,271
JPMorgan
Chase
Bank
NA
..........................
21,946
(14,206)
—
—
7,740
Morgan
Stanley
&
Co.
International
plc
..................
95,651
(63,515)
—
—
32,136
UBS
AG
......................................
19,285
—
—
—
19,285
$
191,388
$
(87,482)
$
—
$
—
$
103,906
(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.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Asset-Backed
Securities
...................................
$
—
$
5,474,278
$
—
$
5,474,278
Corporate
Bonds
........................................
—
11,978,673
—
11,978,673
Foreign
Government
Obligations
..............................
—
409,517
—
409,517
Municipal
Bonds
.........................................
—
250,287
—
250,287
Non-Agency
Mortgage-Backed
Securities
........................
—
1,976,525
—
1,976,525
Preferred
Securities
.......................................
—
25,184
—
25,184
U.S.
Government
Sponsored
Agency
Securities
....................
—
21,163,984
—
21,163,984
U.S.
Treasury
Obligations
...................................
—
10,869,195
—
10,869,195
Short-Term
Securities
Money
Market
Funds
......................................
1,962,807
—
—
1,962,807
Options
Purchased
Foreign
currency
exchange
contracts
...........................
—
5,392
—
5,392
Interest
rate
contracts
......................................
725
120,362
—
121,087
Other
contracts
..........................................
—
1,200
—
1,200
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
49
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2023
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Liabilities
Investments
TBA
Sale
Commitments
....................................
$
—
$
(7,358,867)
$
—
$
(7,358,867)
$
1,963,532
$
44,915,730
$
—
$
46,879,262
Derivative
Financial
Instruments
(a)
Assets
Foreign
currency
exchange
contracts
............................
$
—
$
4
$
—
$
4
Interest
rate
contracts
.......................................
79,065
20,548
—
99,613
Liabilities
Credit
contracts
...........................................
—
(107)
—
(107)
Foreign
currency
exchange
contracts
............................
—
(20,346)
—
(20,346)
Interest
rate
contracts
.......................................
(139,022)
(187,182)
—
(326,204)
$
(59,957)
$
(187,083)
$
—
$
(247,040)
(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.
Fair
Value
Hierarchy
as
of Period
End
(continued)
Statements
of
Assets
and
Liabilities
(unaudited)

March
31,
2023
2023
BlackRock
Semi-Annual
Report
to
Shareholders
50
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
BlackRock
Sustainable
Total
Return
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
..........................................................
$
42,080,586‌
$
46,255,849‌
$
52,275,322‌
Investments,
at
value
—
affiliated
(b)
............................................................
674,502‌
558,511‌
1,962,807‌
Cash  
...............................................................................
45,809‌
11,825‌
—‌
Cash
pledged:
Futures
contracts
......................................................................
28,000‌
220,000‌
105,000‌
Centrally
cleared
swaps
..................................................................
—‌
162,000‌
27,000‌
Foreign
currency,
at
value
(c)
.................................................................
—‌
30,068‌
44,058‌
Receivables:
–‌
–‌
–‌
Investments
sold
......................................................................
36,689‌
944,019‌
304,510‌
TBA
sale
commitments
..................................................................
—‌
997,789‌
7,314,260‌
Dividends
—
affiliated
...................................................................
3,467‌
1,737‌
11,119‌
Interest
—
unaffiliated
...................................................................
573,118‌
263,870‌
273,527‌
From
the
Manager
.....................................................................
28,989‌
14,336‌
29,034‌
Variation
margin
on
futures
contracts
.........................................................
—‌
—‌
21,737‌
Variation
margin
on
centrally
cleared
swaps
....................................................
—‌
—‌
232‌
Unrealized
appreciation
on:
–‌
–‌
–‌
Forward
foreign
currency
exchange
contracts
...................................................
—‌
—‌
4‌
OTC
swaps
..........................................................................
—‌
—‌
14,206‌
Prepaid
expenses
.......................................................................
29,241‌
33,875‌
47,098‌
Total
assets
...........................................................................
43,500,401‌
49,493,879‌
62,429,914‌
LIABILITIES
Bank
overdraft
..........................................................................
—‌
—‌
1,064‌
Options
written,
at
value
(d)
..................................................................
1,672‌
—‌
165,762‌
TBA
sale
commitments,
at
value
(e)
............................................................
—‌
1,003,556‌
7,358,867‌
Payables:
–‌
–‌
–‌
Investments
purchased
..................................................................
101,025‌
2,071,508‌
12,489,802‌
Accounting
services
fees
.................................................................
24,750‌
13,460‌
19,839‌
Administration
fees
.....................................................................
—‌
1‌
3‌
Custodian
fees
........................................................................
3,751‌
6,233‌
4,267‌
Income
dividend
distributions
..............................................................
213,858‌
134,001‌
129,623‌
Printing
and
postage
fees
................................................................
34,365‌
1,821‌
645‌
Professional
fees
......................................................................
121,775‌
31,096‌
57,806‌
Registration
fees
......................................................................
589‌
—‌
—‌
Service
fees
.........................................................................
18‌
22‌
19‌
Transfer
agent
fees
....................................................................
616‌
—‌
506‌
Other
accrued
expenses
.................................................................
—‌
4,350‌
7,166‌
Variation
margin
on
futures
contracts
.........................................................
6,363‌
7,037‌
19,085‌
Variation
margin
on
centrally
cleared
swaps
....................................................
—‌
25,118‌
—‌
Swap
premiums
received
..................................................................
—‌
—‌
6,302‌
Unrealized
depreciation
on:
–‌
–‌
–‌
Forward
foreign
currency
exchange
contracts
...................................................
—‌
25,864‌
19,461‌
OTC
swaps
..........................................................................
—‌
—‌
107‌
Total
liabilities
..........................................................................
508,782‌
3,324,067‌
20,280,324‌
NET
ASSETS
..........................................................................
$
42,991,619‌
$
46,169,812‌
$
42,149,590‌
Statements
of
Assets
and
Liabilities
(unaudited)
(continued)
March
31,
2023
51
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
..........................................................................
$
49,918,867‌
$
49,949,569‌
$
49,945,408‌
Accumulated
loss
.......................................................................
(6,927,248‌)
(3,779,757‌)
(7,795,818‌)
NET
ASSETS
..........................................................................
$
42,991,619‌
$
46,169,812‌
$
42,149,590‌
(a)
  Investments,
at
cost
—
unaffiliated
..........................................................
$
45,774,675‌
$
47,937,034‌
$
55,439,339‌
(b)
  Investments,
at
cost
—
affiliated
............................................................
$
674,502‌
$
558,511‌
$
1,962,807‌
(c)
  Foreign
currency,
at
cost
.................................................................
$
—‌
$
30,250‌
$
43,785‌
(d)
  Premiums
received
....................................................................
$
9,699‌
$
—‌
$
196,950‌
(e)
  Proceeds
received
from
TBA
sale
commitments
.................................................
$
—‌
$
997,789‌
$
7,314,260‌
Statements
of
Assets
and
Liabilities
(unaudited)
(continued)
March
31,
2023
2023
BlackRock
Semi-Annual
Report
to
Shareholders
52
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
............................................................................
$
88,241‌
$
92,297‌
$
84,278‌
Shares
outstanding
.....................................................................
10,264‌
10,000‌
10,000‌
Net
asset
value
........................................................................
$
8.60‌
$
9.23‌
$
8.43‌
Shares
authorized
......................................................................
Unlimited
Unlimited
500
million
Par
value
............................................................................
$
0.001‌
$
0.001‌
$
0.10‌
Investor
A
Net
assets
............................................................................
$
88,525‌
$
110,414‌
$
94,624‌
Shares
outstanding
.....................................................................
10,297‌
11,963‌
11,228‌
Net
asset
value
........................................................................
$
8.60‌
$
9.23‌
$
8.43‌
Shares
authorized
......................................................................
Unlimited
Unlimited
300
million
Par
value
............................................................................
$
0.001‌
$
0.001‌
$
0.10‌
Class
K
Net
assets
............................................................................
$
42,814,853‌
$
45,967,101‌
$
41,970,688‌
Shares
outstanding
.....................................................................
4,980,000‌
4,980,330‌
4,980,000‌
Net
asset
value
........................................................................
$
8.60‌
$
9.23‌
$
8.43‌
Shares
authorized
......................................................................
Unlimited
Unlimited
500
million
Par
value
............................................................................
$
0.001‌
$
0.001‌
$
0.10‌
Statements
of
Operations
(unaudited)

Six
Months
Ended
March
31,
2023
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
INVESTMENT
INCOME
–
–
–
Dividends
—
unaffiliated
.................................................................
$
528‌
$
—‌
$
—‌
Dividends
—
affiliated
...................................................................
23,322‌
15,809‌
84,931‌
Interest
—
unaffiliated
...................................................................
1,232,635‌
805,532‌
707,804‌
Total
investment
income
...................................................................
1,256,485‌
821,341‌
792,735‌
EXPENSES
Investment
advisory
....................................................................
105,689‌
71,228‌
80,860‌
Professional
.........................................................................
90,907‌
46,115‌
63,321‌
Accounting
services
....................................................................
46,236‌
26,229‌
50,512‌
Printing
and
postage
...................................................................
35,247‌
1,416‌
2,638‌
Registration
.........................................................................
31,982‌
29,638‌
35,808‌
Administration
.......................................................................
8,983‌
9,765‌
8,812‌
Custodian
...........................................................................
6,705‌
2,209‌
8,176‌
Administration
—
class
specific
............................................................
4,228‌
4,595‌
4,147‌
Directors
and
Officer
...................................................................
808‌
848‌
916‌
Service
—
class
specific
.................................................................
109‌
137‌
116‌
Transfer
agent
—
class
specific
............................................................
87‌
83‌
80‌
Offering
............................................................................
—‌
6,673‌
8,992‌
Miscellaneous
........................................................................
2,883‌
6,434‌
13,876‌
Total
expenses
.........................................................................
333,864‌
205,370‌
278,254‌
Less:
–‌
–‌
–‌
Administration
fees
waived
...............................................................
(8,983‌)
(9,765‌)
(8,812‌)
Administration
fees
waived
by
the
Manager
—
class
specific
.........................................
(4,218‌)
(4,583‌)
(4,133‌)
Fees
waived
and/or
reimbursed
by
the
Manager
.................................................
(207,889‌)
(110,371‌)
(184,239‌)
Transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific
............................
(68‌)
(59‌)
(60‌)
Total
expenses
after
fees
waived
and/or
reimbursed
................................................
112,706‌
80,592‌
81,010‌
Net
investment
income
....................................................................
1,143,779‌
740,749‌
711,725‌
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
2,135,918‌
$
626,013‌
$
1,582,984‌
Net
realized
gain
(loss)
from:
Investments
—
unaffiliated
.............................................................
$
(1,305,716‌)
$
(1,145,346‌)
$
(1,343,857‌)
Forward
foreign
currency
exchange
contracts
.................................................
—‌
(235,998‌)
(194,046‌)
Foreign
currency
transactions
...........................................................
—‌
(14,555‌)
(10,749‌)
Futures
contracts
....................................................................
22,297‌
(38,431‌)
164,620‌
Options
written
.....................................................................
12,837‌
—‌
(155,421‌)
Swaps  
..........................................................................
—‌
(45,664‌)
28,628‌
(1,270,582‌)
(1,479,994‌)
(1,510,825‌)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
unaffiliated
.............................................................
3,436,918‌
2,352,566‌
2,922,825‌
Forward
foreign
currency
exchange
contracts
.................................................
—‌
(107,864‌)
(115,529‌)
Foreign
currency
translations
............................................................
—‌
116‌
671‌
Futures
contracts
....................................................................
(38,445‌)
(59,327‌)
101,453‌
Options
written
.....................................................................
8,027‌
—‌
180,455‌
Swaps  
..........................................................................
—‌
(79,484‌)
3,934‌
3,406,500‌
2,106,007‌
3,093,809‌
Net
realized
and
unrealized
gain
.............................................................
2,135,918‌
626,013‌
1,582,984‌
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
....................................
$
3,279,697‌
$
1,366,762‌
$
2,294,709‌
Statements
of
Changes
in
Net
Assets

2023
BlackRock
Semi-Annual
Report
to
Shareholders
54
See
notes
to
financial
statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
Six
Months
Ended
03/31/23
(unaudited)
Year
Ended
09/30/22
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
....................................................
$
1,143,779‌
$
1,844,109‌
$
740,749‌
$
588,548‌
Net
realized
gain
(loss)
....................................................
(1,270,582‌)
(1,686,978‌)
(1,479,994‌)
217,270‌
Net
change
in
unrealized
appreciation
(depreciation)
................................
3,406,500‌
(6,898,321‌)
2,106,007‌
(3,882,106‌)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...........................
3,279,697‌
(6,741,190‌)
1,366,762‌
(3,076,288‌)
DISTRIBUTIONS
TO
SHAREHOLDERS
(b)
  Institutional
...........................................................
(2,461‌)
(4,082‌)
(2,939‌)
(1,298‌)
  Investor
A
............................................................
(2,370‌)
(3,877‌)
(3,363‌)
(1,738‌)
  Class
K
..............................................................
(1,206,475‌)
(2,040,030‌)
(1,471,118‌)
(664,697‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.........................
(1,211,306‌)
(2,047,989‌)
(1,477,420‌)
(667,733‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
.........................
721‌
4,263‌
3,549‌
50,020,942‌
NET
ASSETS
Total
increase
(decrease)
in
net
assets
...........................................
2,069,112‌
(8,784,916‌)
(107,109‌)
46,276,921‌
Beginning
of
period
........................................................
40,922,507‌
49,707,423‌
46,276,921‌
—
End
of
period
............................................................
$
42,991,619‌
$
40,922,507‌
$
46,169,812‌
$
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)
55
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Sustainable
Total
Return
Fund
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..................................................................................
$
711,725‌
$
810,640‌
Net
realized
loss
......................................................................................
(1,510,825‌)
(2,450,609‌)
Net
change
in
unrealized
appreciation
(depreciation)
..............................................................
3,093,809‌
(6,354,000‌)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.........................................................
2,294,709‌
(7,993,969‌)
DISTRIBUTIONS
TO
SHAREHOLDERS
(b)
  Institutional
.........................................................................................
(2,590‌)
(1,685‌)
  Investor
A
..........................................................................................
(2,782‌)
(1,566‌)
  Class
K
............................................................................................
(1,296,787‌)
(857,656‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.......................................................
(1,302,159‌)
(860,907‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
.......................................................
302‌
50,011,614‌
NET
ASSETS
Total
increase
in
net
assets
.................................................................................
992,852‌
41,156,738‌
Beginning
of
period
......................................................................................
41,156,738‌
—‌
End
of
period
..........................................................................................
$
42,149,590‌
$
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)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
56
BlackRock
Sustainable
High
Yield
Bond
Fund
Institutional
Six
Months
Ended
03/31/23
(unaudited)
Year
Ended
09/30/22
Period
from
07/22/21
(a)
to
09/30/21
Net
asset
value,
beginning
of
period
.........................................................
$
8.18
‌
$
9.94
‌
$
10.00
‌
Net
investment
income
(b)
.................................................................
0.23
‌
0.37
‌
0.05
‌
Net
realized
and
unrealized
gain
(loss)
........................................................
0.43
‌
(1.72
)
(0.05
)
Net
increase
(decrease)
from
investment
operations
................................................
0.66
‌
(1.35
)
0.00
‌
Distributions
from
net
investment
income
(c)
....................................................
(0.24
)
(0.41
)
(0.06
)
Net
asset
value,
end
of
period
..............................................................
$
8.60
‌
$
8.18
‌
$
9.94
‌
Total
Return
(d)
—
—
—
Based
on
net
asset
value
..................................................................
8.15
%
(e)
(13.97
)%
0.01
%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.........................................................................
1.60
%
(g)
1.75
%
1.32
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
................................................
0.57
%
(g)
0.57
%
0.58
%
(g)
Net
investment
income
...................................................................
5.38
%
(g)
3.96
%
2.80
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
..............................................................
$
88
‌
$
83
‌
$
99
‌
Portfolio
turnover
rate
.....................................................................
18
%
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)
57
Financial
Highlights
BlackRock
Sustainable
High
Yield
Bond
Fund
Investor
A
Six
Months
Ended
03/31/23
(unaudited)
Year
Ended
09/30/22
Period
from
07/22/21
(a)
to
09/30/21
Net
asset
value,
beginning
of
period
.........................................................
$
8.18
‌
$
9.94
‌
$
10.00
‌
Net
investment
income
(b)
.................................................................
0.22
‌
0.34
‌
0.05
‌
Net
realized
and
unrealized
gain
(loss)
........................................................
0.43
‌
(1.72
)
(0.05
)
Net
increase
(decrease)
from
investment
operations
................................................
0.65
‌
(1.38
)
0.00
‌
Distributions
from
net
investment
income
(c)
....................................................
(0.23
)
(0.38
)
(0.06
)
Net
asset
value,
end
of
period
..............................................................
$
8.60
‌
$
8.18
‌
$
9.94
‌
Total
Return
(d)
—
—
—
Based
on
net
asset
value
..................................................................
8.01
%
(e)
(14.18
)%
(0.03
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.........................................................................
1.86
%
(g)
2.00
%
1.58
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
................................................
0.82
%
(g)
0.82
%
0.83
%
(g)
Net
investment
income
...................................................................
5.13
%
(g)
3.71
%
2.55
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
..............................................................
$
89
‌
$
84
‌
$
99
‌
Portfolio
turnover
rate
.....................................................................
18
%
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)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
58
BlackRock
Sustainable
High
Yield
Bond
Fund
Class
K
Six
Months
Ended
03/31/23
(unaudited)
Year
Ended
09/30/22
Period
from
07/22/21
(a)
to
09/30/21
Net
asset
value,
beginning
of
period
.........................................................
$
8.18
‌
$
9.94
‌
$
10.00
‌
Net
investment
income
(b)
.................................................................
0.23
‌
0.37
‌
0.05
‌
Net
realized
and
unrealized
gain
(loss)
........................................................
0.43
‌
(1.72
)
(0.05
)
Net
increase
(decrease)
from
investment
operations
................................................
0.66
‌
(1.35
)
0.00
‌
Distributions
from
net
investment
income
(c)
....................................................
(0.24
)
(0.41
)
(0.06
)
Net
asset
value,
end
of
period
..............................................................
$
8.60
‌
$
8.18
‌
$
9.94
‌
Total
Return
(d)
—
—
—
Based
on
net
asset
value
..................................................................
8.17
%
(e)
(13.93
)%
0.02
%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.........................................................................
1.58
%
(g)
1.46
%
0.96
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
................................................
0.53
%
(g)
0.53
%
0.53
%
(g)
Net
investment
income
...................................................................
5.41
%
(g)
4.00
%
2.85
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
..............................................................
$
42,815
‌
$
40,755
‌
$
49,509
‌
Portfolio
turnover
rate
.....................................................................
18
%
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
each
period)
59
Financial
Highlights
(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)
Offering
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
0.91%
and
0.38%,
respectively.
(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
1.34%
and
0.39%,
respectively.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Low
Duration
Bond
Fund
Institutional
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
.......................................................................
$
9.25
‌
$
10.00
‌
Net
investment
income
(b)
...............................................................................
0.15
‌
0.11
‌
Net
realized
and
unrealized
gain
(loss)
......................................................................
0.12
‌
(0.73
)
Net
increase
(decrease)
from
investment
operations
..............................................................
0.27
‌
(0.62
)
Distributions
from
net
investment
income
(c)
..................................................................
(0.29
)
(0.13
)
Net
asset
value,
end
of
period
............................................................................
$
9.23
‌
$
9.25
‌
Total
Return
(d)
—
—
Based
on
net
asset
value
................................................................................
3.01
%
(e)
(6.24
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.......................................................................................
0.90
%
(g)(h)
1.31
%
(h)(i)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................
0.37
%
(g)
(h)
0.37
%
(h)
(i)
Net
investment
income
.................................................................................
3.19
%
(h)
1.24
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................................
$
92
‌
$
93
‌
Portfolio
turnover
rate
(j)
..................................................................................
108
%
178
%
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
96%
167%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
60
(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)
Offering
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
1.17%
and
0.64%,
respectively.
(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
1.50%
and
0.64%,
respectively.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Low
Duration
Bond
Fund
Investor
A
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
.......................................................................
$
9.25
‌
$
10.00
‌
Net
investment
income
(b)
...............................................................................
0.13
‌
0.10
‌
Net
realized
and
unrealized
gain
(loss)
......................................................................
0.13
‌
(0.74
)
Net
increase
(decrease)
from
investment
operations
..............................................................
0.26
‌
(0.64
)
Distributions
from
net
investment
income
(c)
..................................................................
(0.28
)
(0.11
)
Net
asset
value,
end
of
period
............................................................................
$
9.23
‌
$
9.25
‌
Total
Return
(d)
—
—
Based
on
net
asset
value
................................................................................
2.88
%
(e)
(6.46
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.......................................................................................
1.16
%
(g)(h)
1.48
%
(h)(i)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................
0.63
%
(g)
(h)
0.62
%
(h)
(i)
Net
investment
income
.................................................................................
2.94
%
(h)
1.08
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................................
$
110
‌
$
110
‌
Portfolio
turnover
rate
(j)
..................................................................................
108
%
178
%
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
96%
167%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
61
Financial
Highlights
(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)
Offering
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
0.89%
and
0.35%,
respectively.
(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
1.07%
and
0.35%,
respectively.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Low
Duration
Bond
Fund
Class
K
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
.......................................................................
$
9.25
‌
$
10.00
‌
Net
investment
income
(b)
...............................................................................
0.15
‌
0.12
‌
Net
realized
and
unrealized
gain
(loss)
......................................................................
0.13
‌
(0.74
)
Net
increase
(decrease)
from
investment
operations
..............................................................
0.28
‌
(0.62
)
Distributions
from
net
investment
income
(c)
..................................................................
(0.30
)
(0.13
)
Net
asset
value,
end
of
period
............................................................................
$
9.23
‌
$
9.25
‌
Total
Return
(d)
—
—
Based
on
net
asset
value
................................................................................
3.03
%
(e)
(6.20
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.......................................................................................
0.88
%
(g)(h)
1.04
%
(h)(i)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................
0.34
%
(g)
(h)
0.33
%
(h)
(i)
Net
investment
income
.................................................................................
3.22
%
(h)
1.28
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................................
$
45,967
‌
$
46,074
‌
Portfolio
turnover
rate
(j)
..................................................................................
108
%
178
%
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
96%
167%
See
notes
to
financial
statements.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
62
(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)
Offering
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
1.37%
and
0.42%,
respectively.
(i)
Annualized.
(j)
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.
(k)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Total
Return
Fund
Institutional
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
.......................................................................
$
8.23
‌
$
10.00
‌
Net
investment
income
(b)
...............................................................................
0.14
‌
0.16
‌
Net
realized
and
unrealized
gain
(loss)
......................................................................
0.32
‌
(1.76
)
Net
increase
(decrease)
from
investment
operations
..............................................................
0.46
‌
(1.60
)
Distributions
from
net
investment
income
(c)
..................................................................
(0.26
)
(0.17
)
Net
asset
value,
end
of
period
............................................................................
$
8.43
‌
$
8.23
‌
Total
Return
(d)
—
—
Based
on
net
asset
value
................................................................................
5.65
%
(e)
(16.16
)%
(e)(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
.......................................................................................
1.35
%
(h)(i)
1.58
%
(i)(j)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................
0.40
%
(h)
(i)
0.40
%
(i)
(j)
Net
investment
income
.................................................................................
3.40
%
(i)
1.80
%
(i)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................................
$
84
‌
$
82
‌
Portfolio
turnover
rate
(k)
..................................................................................
295
%
604
%
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
182%
360%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
63
Financial
Highlights
(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)
Offering
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
0.68%,
respectively.
(i)
Annualized.
(j)
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.
(k)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Total
Return
Fund
Investor
A
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
.......................................................................
$
8.23
‌
$
10.00
‌
Net
investment
income
(b)
...............................................................................
0.13
‌
0.13
‌
Net
realized
and
unrealized
gain
(loss)
......................................................................
0.32
‌
(1.76
)
Net
increase
(decrease)
from
investment
operations
..............................................................
0.45
‌
(1.63
)
Distributions
from
net
investment
income
(c)
..................................................................
(0.25
)
(0.14
)
Net
asset
value,
end
of
period
............................................................................
$
8.43
‌
$
8.23
‌
Total
Return
(d)
—
—
Based
on
net
asset
value
................................................................................
5.52
%
(e)
(16.38
)%
(e)(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
.......................................................................................
1.59
%
(h)(i)
1.81
%
(i)(j)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................
0.66
%
(h)
(i)
0.70
%
(i)
(j)
Net
investment
income
.................................................................................
3.14
%
(i)
1.53
%
(i)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................................
$
95
‌
$
92
‌
Portfolio
turnover
rate
(k)
..................................................................................
295
%
604
%
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
182%
360%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
64
(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)
Offering
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)
Annualized.
(j)
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.
(k)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Total
Return
Fund
Class
K
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
.......................................................................
$
8.23
‌
$
10.00
‌
Net
investment
income
(b)
...............................................................................
0.14
‌
0.16
‌
Net
realized
and
unrealized
gain
(loss)
......................................................................
0.32
‌
(1.76
)
Net
increase
(decrease)
from
investment
operations
..............................................................
0.46
‌
(1.60
)
Distributions
from
net
investment
income
(c)
..................................................................
(0.26
)
(0.17
)
Net
asset
value,
end
of
period
............................................................................
$
8.43
‌
$
8.23
‌
Total
Return
(d)
—
—
Based
on
net
asset
value
................................................................................
5.67
%
(e)
(16.12
)%
(e)(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
.......................................................................................
1.32
%
(h)(i)
1.30
%
(i)(j)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................
0.37
%
(h)
(i)
0.36
%
(i)
(j)
Net
investment
income
.................................................................................
3.43
%
(i)
1.84
%
(i)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................................
$
41,971
‌
$
40,982
‌
Portfolio
turnover
rate
(k)
..................................................................................
295
%
604
%
Six
Months
Ended
03/31/23
(unaudited)
Period
from
10/18/21
(a)
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
182%
360%
See
notes
to
financial
statements.
Notes
to
Financial
Statements
(unaudited)
65
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
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.
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.
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
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
(unaudited)
(continued)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
66
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.
Offering
Costs:
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.
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
Notes
to
Financial
Statements
(unaudited)
(continued)
67
Notes
to
Financial
Statements
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).
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
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
(unaudited)
(continued)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
68
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. 
Zero-Coupon
Bonds:
Zero-coupon
bonds
are
normally
issued
at
a
significant
discount
from
face
value
and
do
not
provide
for
periodic
interest
payments.
These
bonds
may
experience
greater
volatility
in
market
value
than
other
debt
obligations
of
similar
maturity
which
provide
for
regular
interest
payments. 
Capital
Securities
and
Trust
Preferred
Securities:
Capital
securities,
including
trust
preferred
securities,
are
typically
issued
by
corporations,
generally
in
the
form
of
interest-bearing
notes
with
preferred
securities
characteristics.
In
the
case
of
trust
preferred
securities,
an
affiliated
business
trust
of
a
corporation
issues
these
securities,
generally
in
the
form
of
beneficial
interests
in
subordinated
debentures
or
similarly
structured
securities.
The
securities
can
be
structured
with
either
a
fixed
or
adjustable
coupon
that
can
have
either
a
perpetual
or
stated
maturity
date.
For
trust
preferred
securities,
the
issuing
bank
or
corporation
pays
interest
to
the
trust,
which
is
then
distributed
to
holders
of
these
securities
as
a
dividend.
Dividends
can
be
deferred
without
creating
an
event
of
default
or
acceleration,
although
maturity
cannot
take
place
unless
all
cumulative
payment
obligations
have
been
met.
The
deferral
of
payments
does
not
affect
the
purchase
or
sale
of
these
securities
in
the
open
market.
These
securities
generally
are
rated
below
that
of
the
issuing
company’s
senior
debt
securities
and
are
freely
callable
at
the
issuer’s
option. 
Preferred
Stocks:
Preferred
stock
has
a
preference
over
common
stock
in
liquidation
(and
generally
in
receiving
dividends
as
well),
but
is
subordinated
to
the
liabilities
of
the
issuer
in
all
respects.
As
a
general
rule,
the
market
value
of
preferred
stock
with
a
fixed
dividend
rate
and
no
conversion
element
varies
inversely
with
interest
rates
and
perceived
credit
risk,
while
the
market
price
of
convertible
preferred
stock
generally
also
reflects
some
element
of
conversion
value.
Because
preferred
stock
is
junior
to
debt
securities
and
other
obligations
of
the
issuer,
deterioration
in
the
credit
quality
of
the
issuer
will
cause
greater
changes
in
the
value
of
a
preferred
stock
than
in
a
more
senior
debt
security
with
similar
stated
yield
characteristics.
Unlike
interest
payments
on
debt
securities,
preferred
stock
dividends
are
payable
only
if
declared
by
the
issuer’s
board
of
directors.
Preferred
stock
also
may
be
subject
to
optional
or
mandatory
redemption
provisions. 
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
Notes
to
Financial
Statements
(unaudited)
(continued)
69
Notes
to
Financial
Statements
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.
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.
Notes
to
Financial
Statements
(unaudited)
(continued)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
70
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
(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
Notes
to
Financial
Statements
(unaudited)
(continued)
71
Notes
to
Financial
Statements
comprising
the
index
or
pay
a
net
settlement
of
cash
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
security
or
underlying
securities
comprising
the
index.
Total
return
swaps
—
Total
return
swaps
are
entered
into
to
obtain
exposure
to
a
security
or
market
without
owning
such
security
or
investing
directly
in
such
market
or
to
exchange
the
risk/return
of
one
security
or
market
(e.g.,
fixed-income)
with
another
security
or
market
(e.g.,
equity
or
commodity
prices)
(equity
risk,
commodity
price
risk
and/or
interest
rate
risk).
Total
return
swaps
are
agreements
in
which
there
is
an
exchange
of
cash
flows
whereby
one
party
commits
to
make
payments
based
on
the
total
return
(distributions
plus
capital
gains/losses)
of
an
underlying
instrument,
or
basket
of
underlying
instruments,
in
exchange
for
fixed
or
floating
rate
interest
payments.
If
the
total
return
of
the
instrument(s)
or
index
underlying
the
transaction
exceeds
or
falls
short
of
the
offsetting
fixed
or
floating
interest
rate
obligation,
the
Funds
receive
payment
from
or
make
a
payment
to
the
counterparty.
Interest
rate
swaps
—
Interest
rate
swaps
are
entered
into
to
gain
or
reduce
exposure
to
interest
rates
or
to
manage
duration,
the
yield
curve
or
interest
rate
(interest
rate
risk).
Interest
rate
swaps
are
agreements
in
which
one
party
pays
a
stream
of
interest
payments,
either
fixed
or
floating,
in
exchange
for
another
party’s
stream
of
interest
payments,
either
fixed
or
floating,
on
the
same
notional
amount
for
a
specified
period
of
time.
In
more
complex
interest
rate
swaps,
the
notional
principal
amount
may
decline
(or
amortize)
over
time.
Forward
swaps
— The
Funds
may enter
into
forward
interest
rate
swaps
and
forward
total
return
swaps.
In
a
forward
swap,
each
Fund
and
the
counterparty
agree
to
make
periodic
net
payments
beginning
on
a
specified
date
or
a
net
payment
at
termination.
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
Fund(s)
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
(unaudited)
(continued)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
72
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 six
months
ended
March
31,
2023,
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
six
months
ended
March
31,
2023, 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 
six
months
 ended March
31,
2023,
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
billion
-
$10
billion
........................................................................
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
..................................................................................................
$
109‌
Sustainable
Low
Duration
Bond
................................................................................................
137‌
Sustainable
Total
Return
.....................................................................................................
116‌
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
...................................................................
$
9‌
$
9‌
$
4,210‌
$
4,228‌
Sustainable
Low
Duration
Bond
.................................................................
9‌
11‌
4,575‌
4,595‌
Sustainable
Total
Return
......................................................................
9‌
9‌
4,129‌
4,147‌
Notes
to
Financial
Statements
(unaudited)
(continued)
73
Notes
to
Financial
Statements
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 six
months
ended
March
31,
2023,
each
Fund
reimbursed
the
Manager
the
following
amounts
for
costs
incurred
in
running
the
call
center,
which
are
included
in
transfer
agent
—
class
specific
in
the
Statements
of
Operations:
For
the
six
months ended
March
31,
2023,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
each
Fund:
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,
2024.
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
six
months
ended
March
31,
2023,
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,
2024.
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
six
months
ended
March
31,
2023,
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,
2024,
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 six
months
ended
March
31,
2023,
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 six
months
ended
March
31,
2023,
the
amounts
waived
were
as
follows:
Fund
Name
Institutional
Investor
A
Class
K
Total
Sustainable
High
Yield
Bond
...................................................................
$
9‌
$
12‌
$
66‌
$
8
7‌
Sustainable
Low
Duration
Bond
.................................................................
10‌
10‌
59‌
79‌
Sustainable
Total
Return
......................................................................
10‌
10‌
60‌
80‌
Fund
Name
Institutional
Investor
A
Class
K
Total
Sustainable
High
Yield
Bond
...................................................................
$
9‌
$
12‌
$
66‌
$
87‌
Sustainable
Low
Duration
Bond
.................................................................
10‌
14‌
59‌
83‌
Sustainable
Total
Return
......................................................................
10‌
10‌
60‌
80‌
Fund
Name
Amounts
Waived
Sustainable
High
Yield
Bond
.............................................................................................
$
458
Sustainable
Low
Duration
Bond
...........................................................................................
312
Sustainable
Total
Return
................................................................................................
1,553
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
...................................................................................................
$
207,431
Sustainable
Low
Duration
Bond
.................................................................................................
110,059
Sustainable
Total
Return
......................................................................................................
182,686
Fund
Name
Amounts
Sustainable
High
Yield
Bond
...................................................................................................
$
8,983
Sustainable
Low
Duration
Bond
.................................................................................................
9,765
Sustainable
Total
Return
......................................................................................................
8,812
Notes
to
Financial
Statements
(unaudited)
(continued)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
74
In
addition,
these
amounts
waived
and/or
reimbursed
by
the
Manager are
included
in administration
fees
waived
by
the
Manager
—
class
specific
and
transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific,
respectively,
in
the
Statements
of
Operations.
For
the
six
months ended
March
31,
2023,
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 March
31,
2023,
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
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
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
....................................................................................
$
4‌
$
—‌
Investor
A
.....................................................................................
4‌
2‌
Class
K
......................................................................................
4,210‌
66‌
$
4,218‌
$
68‌
Sustainable
Low
Duration
Bond
Institutional
....................................................................................
3‌
—‌
Investor
A
.....................................................................................
5‌
—‌
Class
K
......................................................................................
4,575‌
59‌
$
4,583‌
$
59‌
Sustainable
Total
Return
Institutional
....................................................................................
4‌
—‌
Class
K
......................................................................................
4,129‌
60‌
$
4,133‌
$
60‌
Expiring
September
30,
2023
2024
2025
Sustainable
High
Yield
Bond
.........................................................
Fund
Level
...................................................................
$
132,183‌
$
419,665‌
$
216,414‌
Institutional
...................................................................
64‌
246‌
4‌
Investor
A
....................................................................
64‌
246‌
6‌
Class
K
......................................................................
1,977‌
9,456‌
4,276‌
Sustainable
Low
Duration
Bond
Fund
Level
...................................................................
—‌
300,554‌
119,824‌
Institutional
...................................................................
—‌
229‌
3‌
Investor
A
....................................................................
—‌
221‌
5‌
Class
K
......................................................................
—‌
9,414‌
4,634‌
Sustainable
Total
Return
Fund
Level
...................................................................
—‌
381,248‌
191,498‌
Institutional
...................................................................
—‌
231‌
4‌
Investor
A
....................................................................
—‌
187‌
—‌
Class
K
......................................................................
—‌
9,014‌
4,18
9‌
Notes
to
Financial
Statements
(unaudited)
(continued)
75
Notes
to
Financial
Statements
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 six
months
ended
March
31,
2023,
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. 
7.
PURCHASES
AND
SALES 
For
the six
months ended
March
31,
2023,
purchases
and
sales
of
investments,
including
paydowns,
mortgage
dollar
rolls and
excluding
short-term
securities,
were
as
follows:
For
the six
months ended
March
31,
2023,
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
March
31,
2023,
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.
As
of
September
30,
2022, the
Funds
had
non-expiring
capital
loss
carryforwards
available
to
offset
future
realized
capital
gains
as
follows: 
As
of
March
31,
2023, 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 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
U.S.
Government
Securities
Other
Securities
Fund
Name
Purchases
Sales
Purchases
Sales
Sustainable
High
Yield
Bond
..............................................
$
—‌
$
—‌
$
7,851,722‌
$
7,452,114‌
Sustainable
Low
Duration
Bond
............................................
22,789,039‌
22,194,617‌
23,784,352‌
25,997,469‌
Sustainable
Total
Return
.................................................
11,588,673‌
4,567,801‌
110,622,264‌
115,971,496‌
Fund
Name
Purchases
Sales
Sustainable
Low
Duration
Bond
............................................................................
$
5,136,983‌
$
5,139,912‌
Sustainable
Total
Return
.................................................................................
45,867,186‌
45,859,375‌
Fund
Name
Non-expiring
Capital
Loss
Carryforwards
Sustainable
High
Yield
Bond
................................................................................................
$
1,711,104‌
Sustainable
Low
Duration
Bond
..............................................................................................
375,651‌
Sustainable
Total
Return
...................................................................................................
3,162,757‌
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Sustainable
High
Yield
Bond
..........................................
$
46,664,130‌
$
102,536‌
$
(4,031,092‌)
$
(3,928,556‌)
Sustainable
Low
Duration
Bond
........................................
48,562,692‌
293,745‌
(2,135,503‌)
(1,841,758‌)
Sustainable
Total
Return
............................................
57,456,934‌
358,657‌
(3,672,159‌)
(3,313,502‌)
Notes
to
Financial
Statements
(unaudited)
(continued)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
76
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 six
months ended
March
31,
2023,
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.
Infectious
Illness
Risk:
An
outbreak
of
an
infectious
illness,
such
as
the
COVID-19
pandemic,
may
adversely
impact
the
economies
of
many
nations
and
the
global
economy,
and
may
impact
individual
issuers
and
capital
markets
in
ways
that
cannot
be
foreseen.
An
infectious
illness
outbreak
may
result
in,
among
other
things,
closed
international
borders,
prolonged
quarantines,
supply
chain
disruptions,
market
volatility
or
disruptions
and
other
significant
economic,
social
and
political
impacts.
Valuation
Risk:
The
market
values
of
equities,
such
as
common
stocks
and
preferred
securities
or
equity
related
investments,
such
as
futures
and
options,
may
decline
due
to
general
market
conditions
which
are
not
specifically
related
to
a
particular
company.
They
may
also
decline
due
to
factors
which
affect
a
particular
industry
or
industries. A
Fund
may
invest
in
illiquid
investments.
An
illiquid
investment
is
any
investment
that a
Fund
reasonably
expects
cannot
be
sold
or
disposed
of
in
current
market
conditions
in
seven
calendar
days
or
less
without
the
sale
or
disposition
significantly
changing
the
market
value
of
the
investment. A
Fund
may
experience
difficulty
in
selling
illiquid
investments
in
a
timely
manner
at
the
price
that it
believes
the
investments
are
worth.
Prices
may
fluctuate
widely
over
short
or
extended
periods
in
response
to
company,
market
or
economic
news.
Markets
also
tend
to
move
in
cycles,
with
periods
of
rising
and
falling
prices.
This
volatility
may
cause
each
Fund’s
NAV
to
experience
significant
increases
or
decreases
over
short
periods
of
time.
If
there
is
a
general
decline
in
the
securities
and
other
markets,
the
NAV
of a
Fund
may
lose
value,
regardless
of
the
individual
results
of
the
securities
and
other
instruments
in
which a
Fund
invests. 
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
Notes
to
Financial
Statements
(unaudited)
(continued)
77
Notes
to
Financial
Statements
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
Funds
may
be
exposed
to
financial
instruments
that
are
tied
to
LIBOR
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
United
Kingdom’s
Financial
Conduct
Authority,
which
regulates
LIBOR,
announced
that
a
majority
of
USD
LIBOR
settings
will
no
longer
be
published
after
June
30,
2023.
All
other
LIBOR
settings
and
certain
other
interbank
offered
rates
ceased
to
be
published
after
December
31,
2021.
SOFR
has
been
used
increasingly
on
a
voluntary
basis
in
new
instruments
and
transactions.
The
Federal
Reserve
Board
adopted
regulations
that
provide
a
fallback
mechanism
by
identifying
benchmark
rates
on
SOFR
that
will
replace
LIBOR
in
certain
financial
products
after
June
30,
2023.
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:
d
Six
Months
Ended
03/31/23
Year
Ended
09/30/22
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
Sustainable
High
Yield
Bond
Institutional
Shares
sold
..........................................
71‌
$
600‌
184‌
$
1,599‌
Shares
issued
in
reinvestment
of
distributions
.....................
6‌
54‌
3‌
26‌
77‌
$
654‌
187‌
$
1,625‌
Investor
A
Shares
sold
..........................................
—‌
$
—‌
283‌
$
2,587‌
Shares
issued
in
reinvestment
of
distributions
.....................
8‌
67‌
6‌
51‌
8‌
$
67‌
289‌
$
2,638‌
85‌
$
721‌
476‌
$
4,263‌
d
Six
Months
Ended
03/31/23
Period
from
10/18/21
(a)
to
09/30/22
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
Sustainable
Low
Duration
Bond
Institutional
Shares
sold
..........................................
—‌
$
—‌
10,001‌
$
100,010‌
Shares
redeemed
......................................
—‌
—‌
(1‌)
(10‌)
—‌
$
—‌
10,000‌
$
100,000‌
Notes
to
Financial
Statements
(unaudited)
(continued)
2023
BlackRock
Semi-Annual
Report
to
Shareholders
78
(a)
Commencement
of
operations.
As
of
March
31,
2023,
shares
owned
by
BlackRock
Financial
Management,
Inc.,
an
affiliate
of
the
Funds,
were
as
follows:
12.
SUBSEQUENT
EVENTS 
Management’s
evaluation
of
the
impact
of
all
subsequent
events
on
the
Funds’
financial
statements
was
completed
through
the
date
the
financial
statements
were
issued
and
the
following
items
were
noted:
Effective
April
13,
2023,
the
credit
agreement
was
extended
until
April
2024
under
the
same
terms.
d
Six
Months
Ended
03/31/23
Period
from
10/18/21
(a)
to
09/30/22
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
Investor
A
Shares
sold
..........................................
—‌
$
—‌
21,953‌
$
216,401‌
Shares
issued
in
reinvestment
of
distributions
.....................
59‌
542‌
62‌
594‌
Shares
redeemed
......................................
—‌
—‌
(10,111‌)
(96,014‌)
59‌
$
542‌
11,904‌
$
120,981‌
Class
K
Shares
sold
..........................................
329‌
$
3,000‌
4,980,008‌
$
49,800,077‌
Shares
issued
in
reinvestment
of
distributions
.....................
1‌
7‌
—‌
—‌
Shares
redeemed
......................................
—‌
—‌
(8‌)
(116‌)
330‌
$
3,007‌
4,980,000‌
$
49,799,961‌
389‌
$
3,549‌
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
..........................................
2‌
$
18‌
11,178‌
$
111,490‌
Shares
issued
in
reinvestment
of
distributions
.....................
36‌
299‌
15‌
133‌
Shares
redeemed
......................................
(2‌)
(15‌)
(1‌)
(10‌)
36‌
$
302‌
11,192‌
$
111,613‌
Class
K
Shares
sold
..........................................
—‌
$
—‌
4,980,001‌
$
49,800,011‌
Shares
redeemed
......................................
—‌
—‌
(1‌)
(10‌)
—‌
$
—‌
4,980,000‌
$
49,800,001‌
36‌
$
302‌
5,001,192‌
$
50,011,614‌
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
Statement
Regarding
Liquidity
Risk
Management
Program
79
Statement
Regarding
Liquidity
Risk
Management
Program
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Liquidity
Rule”),
BlackRock
Funds
V
(the
“Trust”)
and
BlackRock
Bond
Fund,
Inc.
(the
“Corporation”)
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
“Program”)
for
the
BlackRock
Sustainable
High
Yield
Bond
Fund,
BlackRock
Sustainable
Low
Duration
Bond
Fund
and
BlackRock
Sustainable
Total
Return
Fund
(the
“Funds”),
each
a
series
of
the
Trust
or
the
Corporation,
which
is
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk.
The
Board
of
Trustees
of
the
Trust
and
the
Board
of
Directors
of
Corporation
(together,
the
“Board”),
on
behalf
of
the
Funds,
met
on
November
10-11,
2022
(the
“Meeting”)
to
review
the
Program.
The
Board
previously
appointed
BlackRock
Advisors,
LLC,
the
investment
adviser
to
each
Fund,
as
the
program
administrator
for
each
Fund’s
Program.
BlackRock
also
previously
delegated
oversight
of
the
Program
to
the
40
Act
Liquidity
Risk
Management
Committee
(the
“Committee”).
At
the
Meeting,
the
Committee,
on
behalf
of
BlackRock,
provided
the
Board
with
a
report
that
addressed
the
operation
of
the
Program
and
assessed
its
adequacy
and
effectiveness
of
implementation,
including
the
management
of
each
Fund’s
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
and
any
material
changes
to
the
Program
(the
“Report”).
The
Report
covered
the
period
from
October
1,
2021
through
September
30,
2022
(the
“Program
Reporting
Period”).
The
Report
described
the
Program’s
liquidity
classification
methodology
for
categorizing
each
Fund’s
investments
(including
derivative
transactions)
into
one
of
four
liquidity
buckets.
It
also
referenced
the
methodology
used
by
BlackRock
to
establish
each
Fund’s
HLIM
and
noted
that
the
Committee
reviews
and
ratifies
the
HLIM
assigned
to
each
Fund
no
less
frequently
than
annually.
The
Report
also
discussed
notable
events
affecting
liquidity
over
the
Program
Reporting
Period,
including
the
imposition
of
capital
controls
in
certain
countries.
The
Report
noted
that
the
Program
complied
with
the
key
factors
for
consideration
under
the
Liquidity
Rule
for
assessing,
managing
and
periodically
reviewing
each
Fund’s
liquidity
risk,
as
follows:
a)
The
Fund’s
investment
strategy
and
liquidity
of
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions
.
During
the
Program
Reporting
Period,
the
Committee
reviewed
whether
each
Fund’s
strategy
is
appropriate
for
an
open-end
fund
structure
with
a
focus
on
funds
with
more
significant
and
consistent
holdings
of
less
liquid
and
illiquid
assets.
The
Committee
also
factored
a
fund’s
concentration
in
an
issuer
into
the
liquidity
classification
methodology
by
taking
issuer
position
sizes
into
account.
Where
a
fund
participated
in
borrowings
for
investment
purposes
(such
as
tender
option
bonds
or
reverse
repurchase
agreements),
such
borrowings
were
factored
into
the
Program’s
calculation
of
a
fund’s
liquidity
bucketing.
A
fund’s
derivative
exposure
was
also
considered
in
such
calculation.
b)
Short-term
and
long-term
cash
flow
projections
during
both
normal
and
reasonably
foreseeable
stressed
conditions
.
During
the
Program
Reporting
Period,
the
Committee
reviewed
historical
redemption
activity
and
used
this
information
as
a
component
to
establish
each
Fund’s
reasonably
anticipated
trading
size
utilized
for
liquidity
classifications.
Each
Fund
has
adopted
an
in-kind
redemption
policy
which
may
be
utilized
to
meet
larger
redemption
requests.
The
Committee
may
also
take
into
consideration
a
fund’s
shareholder
ownership
concentration
(which,
depending
on
product
type
and
distribution
channel,
may
or
may
not
be
available),
a
fund’s
distribution
channels,
and
the
degree
of
certainty
associated
with
a
fund’s
short-term
and
long-term
cash
flow
projections.
c)
Holdings
of
cash
and
cash
equivalents,
as
well
as
borrowing
arrangements
.
The
Committee
considered
the
terms
of
the
credit
facility
committed
to
each
Fund,
the
financial
health
of
the
institution
providing
the
facility
and
the
fact
that
the
credit
facility
is
shared
among
multiple
funds
(including
that
a
portion
of
the
aggregate
commitment
amount
is
specifically
designated
for
BlackRock
Floating
Rate
Income
Portfolio,
a
series
of
BlackRock
Funds
V,
and
BlackRock
Floating
Rate
Loan
ETF,
a
series
of
BlackRock
ETF
Trust
II).
The
Committee
also
considered
other
types
of
borrowing
available
to
the
funds,
such
as
the
ability
to
use
reverse
repurchase
agreements
and
interfund
lending,
as
applicable.
There
were
no
material
changes
to
the
Program
during
the
Program
Reporting
Period
other
than
the
enhancement
of
certain
model
components
in
the
Program’s
classification
methodology.
The
Report
provided
to
the
Board
stated
that
the
Committee
concluded
that
based
on
the
operation
of
the
functions,
as
described
in
the
Report,
the
Program
is
operating
as
intended
and
is
effective
in
implementing
the
requirements
of
the
Liquidity
Rule.
Additional
Information
2023
BlackRock
Semi-Annual
Report
to
Shareholders
80
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.
Additional
Information
(continued)
81
Additional
Information
BlackRock
Privacy
Principles
BlackRock
is
committed
to
maintaining
the
privacy
of
its
current
and
former
fund
investors
and
individual
clients
(collectively,
“Clients”)
and
to
safeguarding
their
non-public
personal
information.
The
following
information
is
provided
to
help
you
understand
what
personal
information
BlackRock
collects,
how
we
protect
that
information
and
why
in
certain
cases
we
share
such
information
with
select
parties.
If
you
are
located
in
a
jurisdiction
where
specific
laws,
rules
or
regulations
require
BlackRock
to
provide
you
with
additional
or
different
privacy-related
rights
beyond
what
is
set
forth
below,
then
BlackRock
will
comply
with
those
specific
laws,
rules
or
regulations.
BlackRock
obtains
or
verifies
personal
non-public
information
from
and
about
you
from
different
sources,
including
the
following:
(i)
information
we
receive
from
you
or,
if
applicable,
your
financial
intermediary,
on
applications,
forms
or
other
documents;
(ii)
information
about
your
transactions
with
us,
our
affiliates,
or
others;
(iii)
information
we
receive
from
a
consumer
reporting
agency;
and
(iv)
from
visits
to
our
websites.
BlackRock
does
not
sell
or
disclose
to
non-affiliated
third
parties
any
non-public
personal
information
about
its
Clients,
except
as
permitted
by
law
or
as
is
necessary
to
respond
to
regulatory
requests
or
to
service
Client
accounts.
These
non-affiliated
third
parties
are
required
to
protect
the
confidentiality
and
security
of
this
information
and
to
use
it
only
for
its
intended
purpose.
We
may
share
information
with
our
affiliates
to
service
your
account
or
to
provide
you
with
information
about
other
BlackRock
products
or
services
that
may
be
of
interest
to
you.
In
addition,
BlackRock
restricts
access
to
non-public
personal
information
about
its
Clients
to
those
BlackRock
employees
with
a
legitimate
business
need
for
the
information.
BlackRock
maintains
physical,
electronic
and
procedural
safeguards
that
are
designed
to
protect
the
non-public
personal
information
of
its
Clients,
including
procedures
relating
to
the
proper
storage
and
disposal
of
such
information.
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
10001
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
2023
BlackRock
Semi-Annual
Report
to
Shareholders
82
Currency
Abbreviation
CAD
Canadian
Dollar
EUR
Euro
JPY
Japanese
Yen
USD
United
States
Dollar
Portfolio
Abbreviation
BA
Canadian
Bankers
Acceptances
CDI
Crest
Depository
Interests
CLO
Collateralized
Loan
Obligation
CSMC
Credit
Suisse
Mortgage
Capital
DAC
Designated
Activity
Company
ESTR
Euro
Short-Term
Rate
ETF
Exchange-Traded
Fund
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
S&P
Standard
&
Poor's
SOFR
Secured
Overnight
Financing
Rate
SPDR
Standard
&
Poor’s
Depositary
Receipts
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-03/23-SAR
Item 2 –  Code of Ethics – Not Applicable to this semi-annual report
Item 3 –  Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 –  Principal Accountant Fees and Services – Not Applicable to this semi-annual report
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 – Not Applicable to this semi-annual report
              (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: May 24, 2023
 
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: May 24, 2023
 
By:     /s/ Trent Walker
          Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Bond Fund, Inc.
 
Date: May 24, 2023

 
 EX-99.CERT 2 brbondfund33123302.htm
EX-99. CERT
CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
 
I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock Bond Fund, Inc., certify that:
1.
                   
I have reviewed this report on Form N-CSR of BlackRock Bond Fund, Inc.;
2.
                   
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
                   
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.
                   
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a)
                   
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
                  
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
                   
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d)
                  
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
                   
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a)
                   
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
b)
                  
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: May 24, 2023
/s/ John M. Perlowski______
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Bond Fund, Inc.

EX-99. CERT
CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
 
I, Trent Walker, Chief Financial Officer (principal financial officer) of BlackRock Bond Fund, Inc., certify that:
1.
                   
I have reviewed this report on Form N-CSR of BlackRock Bond Fund, Inc.;
2.
                   
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.
                   
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4.
                   
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a)
                   
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)
                  
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)
                   
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d)
                  
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
                   
The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
a)
                   
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
b)
                  
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: May 24, 2023
/s/ Trent Walker________
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Bond Fund, Inc.

 
 EX-99.906 CERT 3 brbondfund33123906.htm
Exhibit 99.906CERT
 
Certification Pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002
 
Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Bond Fund, Inc. (the “Registrant”), hereby certifies, to the best of his knowledge, that the Registrant's Report on Form N-CSR for the period ended March 31, 2023 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: May 24, 2023
/s/ John M. Perlowski_______
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Bond Fund, Inc.
 
Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Bond Fund, Inc. (the “Registrant”), hereby certifies, to the best of his knowledge, that the Registrant's Report on Form N-CSR for the period ended March 31, 2023 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: May 24, 2023
/s/ Trent Walker_________
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Bond Fund, Inc.
 
 
This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.