Blackrock Large Cap Series Funds N-CSRS Certified semi-annual shareholder report (management investment company)

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: 811-09637

Name of Fund: BlackRock Large Cap Series Funds, Inc.

BlackRock Event Driven Equity Fund

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 05/31/2021

Date of reporting period: 11/30/2020

Item 1 – Report to Stockholders

(a) The Report to Shareholders is attached herewith.

NOVEMBER 30, 2020

2020 Semi-Annual Report

(Unaudited)

BlackRock Event Driven Equity Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of November 30, 2020 has been a time of sudden change in global financial markets, as the emergence and spread of the coronavirus (or “COVID-19”) led to a vast disruption in the global economy and financial markets. Prior to the outbreak of the virus, U.S. equities and bonds both delivered solid returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus became more apparent throughout February and March 2020, countries around the world took economically disruptive countermeasures. Stay-at-home orders and closures of non-essential businesses became widespread, many workers were laid off, and unemployment claims spiked, causing a global recession and a sharp fall in equity prices.

After markets hit their lowest point of the reporting period in late March 2020, a steady recovery ensued, as businesses began to re-open and governments learned to adapt to life with the virus. Equity prices continued to rise throughout the summer, fed by strong fiscal and monetary support and improving economic indicators. Many equity indices neared or surpassed all-time highs in November 2020 following a series of successful vaccine trials. In the United States, both large- and small-capitalization stocks posted a significant advance. International equities from developed economies grew at a more modest pace, significantly lagging emerging market stocks, which rebounded sharply.

During the market downturn, the performance of different types of fixed-income securities initially diverged due to a reduced investor appetite for risk. U.S. Treasuries benefited from the risk-off environment, and posted solid returns, as the 10-year U.S. Treasury yield (which is inversely related to bond prices) touched an all-time low. In the corporate bond market, support from the U.S. Federal Reserve (the “Fed”) assuaged credit concerns and both investment-grade and high-yield bonds recovered to post positive returns.

The Fed took an accommodative monetary stance in late 2019 to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency interest rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also implemented a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruptions have clearly hindered worldwide economic growth, we believe that the global expansion is likely to accelerate as vaccination efforts get under way. Inflation should increase as the growth accelerates, but a shift in central bank policy means that moderate inflation is less likely to be followed by interest rate hikes that could threaten the equity expansion.

Overall, we favor a positive stance toward risk, with an overweight in both equities and credit. We see U.S. and Asian equities benefiting from structural growth trends in tech, while emerging markets should be particularly helped by a vaccine-led economic expansion. In credit, rising inflation should provide tailwinds for inflation-protected bonds, and global high-yield and Asian bonds also provide attractive opportunities. We believe that international diversification and a focus on sustainability can help provide portfolio resilience, and the disruption created by the coronavirus appears to be accelerating the shift toward sustainable investments.

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

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of November 30, 2020
	6-Month	12-Month
U.S. large cap equities (S&P 500® Index)	19.98%	17.46%
U.S. small cap equities (Russell 2000® Index)	31.36	13.59
International equities (MSCI Europe, Australasia, Far East Index)	20.16	6.37
Emerging market equities (MSCI Emerging Markets Index)	31.14	18.43
3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)	0.07	0.80
U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)	(1.31)	10.09
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	1.79	7.28
Tax-exempt municipal bonds (S&P Municipal Bond Index)	3.12	4.68
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	10.30	7.17
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

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

Table of Contents

	Page
The Markets in Review		2
Semi-Annual Report:
Fund Summary		4
About Fund Performance		7
Disclosure of Expenses		7
Derivative Financial Instruments		7
Financial Statements:
Schedule of Investments		8
Statement of Assets and Liabilities		23
Statement of Operations		25
Statements of Changes in Net Assets		26
Financial Highlights		27
Notes to Financial Statements		30
Statement Regarding Liquidity Risk Management Program		41
Additional Information		42
Glossary of Terms Used in this Report		44

3

Fund Summary as of November 30, 2020  BlackRock Event Driven Equity Fund

Investment Objective

BlackRock Event Driven Equity Fund’s (the “Fund”) investment objective is to seek long-term capital growth.

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended November 30, 2020, the Fund outperformed the ICE BofA 3-Month U.S. Treasury Bill Index. For the same period, the Fund underperformed the Russell 1000^® Index.

What factors influenced performance?

The Fund is an absolute return strategy managed to a cash benchmark, the ICE BofA 3-Month U.S. Treasury Bill Index. The Fund diversifies across hard catalysts (primarily publicly announced mergers), soft catalysts (companies undergoing meaningful corporate events), and credit opportunities.

The Fund delivered strong performance over the period, generating positive, idiosyncratic alpha amid a market environment characterized by both a pickup in global economic activity and the presence of several risk factors such as COVD-19 and the U.S. election. The Fund capitalized on a robust opportunity set across the entire catalyst spectrum, through both equity and credit investments. Cross-collaboration within the investment adviser, leaning into areas of perceived mispricing and broadening the scope of the Fund’s soft catalysts and credit investments all proved beneficial to performance.

Hard catalysts, soft catalysts, and credit investments all contributed to returns during the period. Soft catalyst positioning in select new equity issuance proved additive over the period. Soft catalyst positioning in the Fund’s Arconic Corp. strategy also benefited performance, as a positive idiosyncratic earnings outlook and increase in underlying aerospace demand supported sentiment with respect to the position through the third quarter of 2020. In addition, positive idiosyncratic catalysts at both Howmet Aerospace Inc. and Arconic Corp. drove outperformance versus hedges early in the fourth quarter of 2020. Howmet continues to execute on key pricing and margin initiatives, supporting further advances in the share price late in the period. An investment in Peugeot/Fiat Chrysler bolstered results as well, as the companies announced value-neutral amendments to the terms of the transaction that further improved the likelihood of successful completion.

After shareholders of molecular diagnostics firm Qiagen NV rejected Thermo Fisher Scientific’s acquisition offer as insufficient given the continued strength of Qiagen’s standalone business prospects, we reduced the position on strength, added a tailored basket of hedges, and migrated the position to the soft catalyst portfolio. This soft catalyst positioning in Qiagen modestly underperformed hedges over the subsequent period. Positioning in Simon Property Group/Taubman Centers also dragged on results, as Simon sought to terminate the transaction and the parties entered into litigation. Ultimately, the companies agreed to settle all litigation and move forward with the merger at a reduced acquisition price, which was a positive outcome for Taubman shareholders. An investment in Waste Management/Advanced Disposal Services detracted modestly from performance, as Waste Management renegotiated a lower offer price after required divestitures were announced. The transaction successfully completed in October 2020.

Describe recent portfolio activity.

The investment adviser remained constructive on the opportunity set across the event-driven landscape throughout the period. Accordingly, the Fund shifted capital across the three sub-strategies, increasing exposure to soft catalysts and credit investments, which offered attractive risk-adjusted return opportunities. As has been the case throughout the period, the investment adviser continues to recognize opportunities across all three sub-strategies and position the portfolio accordingly.

The Fund held derivatives during the period as part of its investment strategy. Contracts for difference are used by the investment adviser as the primary instrument to gain exposure to merger arbitrage situations. As a result, cash and cash equivalents are not representative of unencumbered cash, and the portfolio remains fully invested as of November 30, 2020. The Fund’s use of derivatives had a positive impact on Fund performance.

Describe portfolio positioning at period end.

The Fund remained diversified across the spectrum of corporate events, while maintaining a skew to hard catalysts, merger arbitrage opportunities. The Fund was comprised of 90 investments at the end of the period, with 66% of the portfolio invested in hard catalyst opportunities, 26% in soft catalyst opportunities and 9% in credit. From a geographical perspective, the Fund’s exposure was concentrated in the United States, with nearly 82% of the Fund’s gross exposure in North America, 17% in Europe and less than 1% in Asia Pacific. The Fund remained diversified across sectors and market capitalizations.

These views are not intended to be a forecast of future events and are no guarantee of future results.

4 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Fund Summary as of November 30, 2020 (continued) BlackRock Event Driven Equity Fund

Performance Summary for the Period Ended November 30, 2020

				Average Annual Total Returns(a)(b)
				1 Year						5 Years						10 Years
	6-Month Total Returns			Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge
Institutional		5.45	%		6.09	%		N/A			6.14	%		N/A			9.21	%		N/A
Investor A		5.26			5.84			0.28	%		5.86			4.73	%		8.92			8.34	%
Investor C		4.86			5.09			4.11			5.10			5.10			8.30			8.30
Russell 1000® Index(c)		22.05			19.41			N/A			14.23			N/A			14.27			N/A
ICE BofA 3-Month U.S. Treasury Bill Index(d)		0.07			0.80			N/A			1.20			N/A			0.64			N/A

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

^(b)  Under normal market conditions, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in equity securities and related derivative instruments with similar economic characteristics. The Fund’s total returns prior to May 8, 2015 are the returns of the Fund when it utilized different investment strategies under the name BlackRock Large Cap Core Plus Fund.

^(c)  An index that measures the performance of the large cap segment of the U.S. equity universe. It is a subset of the Russell 3000^® Index and includes approximately 1,000 of the largest securities based on a combination of their market capitalization and current index membership. The index represents approximately 92% of the total market capitalization of the Russell 3000^® Index.

^(d)  An unmanaged index that tracks 3-month U.S. Treasury securities.

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

	Actual									Hypothetical(a)
				Including Interest Expense			Excluding Interest Expense					Including Interest Expense				Excluding Interest Expense
		Beginning Account Value (06/01/20)	Ending Account Value (11/30/20)		Expenses  Paid During the Period	(b)		Expenses  Paid During the Period	(c)		Beginning Account Value (06/01/20)		Ending Account Value (11/30/20)	Expenses Paid During the Period	(b)		Ending Account Value (11/30/20)	Expenses Paid During the Period	(c)
Institutional		$    1,000.00	$    1,054.50		$   6.08			$     6.08			$  1,000.00		$  1,019.15	$     5.98			$  1,019.15	$     5.97
Investor A		1,000.00	1,052.60		7.35			7.35			1,000.00		1,017.90	7.23			1,017.91	7.22
Investor C		1,000.00	1,048.60		11.17			11.16			1,000.00		1,014.17	10.98			1,014.17	10.97

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

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.18% for Institutional, 1.43% for Investor A, and 2.17% for Investor C), multiplied by average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.18% for Institutional, 1.43% for Investor A, and 2.17% for Investor C), multiplied by average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

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

FUND  SUMMARY 5

Fund Summary as of November 30, 2020 (continued) BlackRock Event Driven Equity Fund

Portfolio Information

SECTOR ALLOCATION

	Percent of Total Investments(a)
Sector(b)	Long			Short			Total
Information Technology		15	%		13	%		28	%
Consumer Discretionary		16			8			24
Financials		7			6			13
Health Care		12			1			13
Investment Companies		1			6			7
Industrials		6			—	(c)		6
Materials		3			1			4
Communication Services		2			—			2
Consumer Staples		1			—			1
Real Estate		1			—	(c)		1
Energy		1			—	(c)		1
		65	%		35	%		100	%

^(a)  Total investments include the gross notional values of long and short equity securities of the underlying derivative contracts utilized by the Fund and exclude short-term securities and borrowed bonds.

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

^(c)  Amount is less than 1%.

6 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

About Fund Performance

Institutional 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 5.25% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. These shares automatically convert to Investor A Shares after approximately eight years.

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the 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 on the previous page 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”), the Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of the Fund’s expenses. Without such waiver and/or reimbursement, the Fund’s performance would have been lower. With respect to the Fund’s voluntary waiver, 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 may be reduced or discontinued at any time. With respect to the Fund’s contractual waiver, 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.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example shown on the previous page (which is based on a hypothetical investment of $1,000 invested on June 1, 2020 and held through November 30, 2020) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

The expense example also provides information about hypothetical account values and hypothetical expenses based on the 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 the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

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

ABOUT   FUND   PERFORMANCE 7

Schedule of Investments (unaudited)  November 30, 2020 BlackRock Event Driven Equity Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks
Aerospace & Defense — 1.1%
Howmet Aerospace, Inc.		2,900,076	$	68,035,783
Automobiles — 0.2%
Li Auto, Inc., ADR(a)(b)		93,305		3,358,047
XPeng, Inc., ADR(a)(b)		114,424		6,723,554
				10,081,601
Banks — 0.0%
Valley National Bancorp		125,854		1,150,306
Building Products — 0.1%
AZEK Co., Inc.(a)		122,985		4,393,024
Chemicals — 1.0%
Akzo Nobel NV		22,536		2,386,349
Axalta Coating Systems Ltd.(a)		460,963		13,188,151
Corteva, Inc.		4,349		166,654
Dow, Inc.		4,349		230,540
DuPont de Nemours, Inc.		142,672		9,051,112
Olin Corp.		881,729		19,301,048
Sherwin-Williams Co.		20,374		15,232,213
				59,556,067
Commercial Services & Supplies — 0.6%
GFL Environmental, Inc.(b)		1,320,579		35,827,308
Consumer Finance — 0.1%
Lufax Holding Ltd., ADR(a)(b)		373,970		6,159,286
Diversified Consumer Services — 0.1%
Service Corp. International		82,032		3,990,036
Diversified Telecommunication Services — 0.4%
Altice Europe NV(a)		3,418,073		17,981,370
AT&T Inc.		234,545		6,743,169
				24,724,539
Electric Utilities — 0.0%
Energy Harbor Corp.(a)		54,354		1,226,389
Electrical Equipment — 0.2%
OSRAM Licht AG(a)		205,900		12,706,157
Electronic Equipment, Instruments & Components — 0.2%
Keysight Technologies, Inc.(a)(b)		101,290		12,158,852
Vontier Corp.(a)		1,020		33,833
				12,192,685
Entertainment — 0.0%
Warner Music Group Corp., Class A		100,558		2,989,589
Equity Real Estate Investment Trusts (REITs) — 0.2%
VEREIT, Inc.		158,504		1,123,793
VICI Properties, Inc.		121,465		3,071,850
Welltower, Inc.		129,230		8,138,906
				12,334,549
Food & Staples Retailing — 0.0%
Walgreens Boots Alliance, Inc.		40,199		1,527,964
Food Products — 0.4%
Conagra Brands, Inc.		628,301		22,970,684
Health Care Equipment & Supplies — 1.1%
Cooper Cos., Inc.		7,336		2,459,174
Danaher Corp.		147,833		33,207,727
Envista Holdings Corp.(a)		1,047,567		31,144,167
Outset Medical, Inc.(a)(b)		6,936		443,904
				67,254,972

Security		Shares		Value
Health Care Providers & Services — 0.9%
Anthem, Inc.			2,711	$	844,531
Brookdale Senior Living, Inc.(a)			4,875,510		20,672,162
Cigna Corp.			144,648		30,251,683
Oak Street Health, Inc.(a)			32,376		1,527,176
					53,295,552
Health Care Technology — 0.0%
Accolade, Inc.(a)			9,235		479,389
American Well Corp., Class A(a)(b)			66,269		1,758,779
GoodRx Holdings, Inc., Class A(a)			18,868		711,324
					2,949,492
Hotels, Restaurants & Leisure — 0.5%
Caesars Entertainment, Inc.(a)			411,281		28,016,462
Insurance — 0.0%
GoHealth, Inc., Class A(a)			53,404		562,878
Lemonade, Inc.(a)			19,435		1,346,262
Root, Inc., Class A(a)(b)			11,998		212,365
					2,121,505
Interactive Media & Services — 0.1%
ZoomInfo Technologies, Inc., Class A(a)(b)			165,401		8,476,801
IT Services — 0.2%
BigCommerce Holdings, Inc., Series 1(a)(b)			23,358		1,884,056
Chindata Group Holdings Ltd., ADR(a)(b)			61,949		1,144,198
Nuvei Corp.(a)(c)			84,444		3,968,868
Rackspace Technology, Inc.(a)(b)			133,469		2,397,103
Shift4 Payments, Inc., Class A(a)(b)			67,987		4,190,039
Snowflake, Inc., Class A(a)			2,540		827,634
					14,411,898
Life Sciences Tools & Services — 1.5%
Maravai LifeSciences Holdings, Inc., Class A(a)			290,455		8,176,308
PPD, Inc.(a)			354,245		12,398,575
QIAGEN NV(a)			1,215,735		58,602,158
Sotera Health Co.(a)			425,721		11,520,010
					90,697,051
Machinery — 0.0%
Altra Industrial Motion Corp.			628		35,645
Fortive Corp.(b)			2,552		178,972
					214,617
Media — 0.2%
Charter Communications, Inc., Class A(a)			17,792		11,600,206
Metals & Mining — 0.4%	��
Arconic Corp.(a)			884,623		24,335,979
Oil, Gas & Consumable Fuels — 0.4%
Williams Cos., Inc.			1,019,367		21,386,320
Personal Products — 0.5%
Coty, Inc., Class A			3,864,936		27,788,890
Yatsen Holding Ltd., ADR(a)(b)			10,216		170,709
					27,959,599
Pharmaceuticals — 0.7%
Atea Pharmaceuticals, Inc.(a)(b)			21,010		700,053
Elanco Animal Health, Inc.(a)(b)			1,237,720		37,861,855
Pfizer, Inc.			69,071		2,646,110
Royalty Pharma PLC, Class A			33,590		1,430,934
Viatris, Inc.(a)			8,570		144,152
					42,783,104
Real Estate Management & Development — 0.1%
KE Holdings, Inc., ADR(a)			57,187		3,736,027

8 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund (Percentages shown are based on Net Assets)

Security		Shares		Value
Software — 0.3%
Asana, Inc., Class A(a)			28,324	$	791,656
Datto Holding Corp.(a)			72,325		2,017,144
Duck Creek Technologies, Inc.(a)			8,033		319,392
Jamf Holding Corp.(a)(b)			30,522		967,547
JFrog Ltd.(a)			13,910		978,708
nCino, Inc.(a)			2,250		183,352
Palantir Technologies, Inc., Class A(a)(b)			70,812		1,919,713
Sumo Logic, Inc.(a)(b)			17,298		453,208
Unity Software, Inc.(a)			42,864		6,514,471
Vertex, Inc., Class A(a)(b)			21,432		540,944
VMware, Inc., Class A(a)			18,090		2,530,610
					17,216,745
Specialty Retail — 0.1%
Leslie’s, Inc.(a)(b)			266,301		5,509,768
Vroom, Inc.(a)			21,497		770,882
					6,280,650
Wireless Telecommunication Services — 0.2%
T-Mobile U.S., Inc.(a)(b)			80,939		10,760,031
Total Common Stocks — 11.8% (Cost: $509,451,413)					713,362,978
		Par (000)
Corporate Bonds
Aerospace & Defense — 0.3%
Bombardier, Inc., 8.75%, 12/01/21(c)	USD		12,400		12,709,380
Parsons Corp., 0.25%, 08/15/25(c)(d)			1,192		1,194,259
TransDigm, Inc., 8.00%, 12/15/25(c)			2,714		2,965,045
					16,868,684
Airlines — 0.2%
Delta Air Lines, Inc., 2.60%, 12/04/20			10,000		10,000,000
Automobiles — 0.3%
Volkswagen Group of America Finance LLC, 4.00%, 11/12/21(c)			17,500		18,087,934
Chemicals — 0.1%
Olin Corp., 9.50%, 06/01/25(c)			7,129		8,715,203
Commercial Services & Supplies — 0.1%
Watts Guerra LLP, 9.00%, 10/07/23(e)			5,000		5,000,000
Diversified Consumer Services — 0.1%
Chegg, Inc., 0.00%, 09/01/26(c)(d)(f)			2,785		2,883,978
Sotheby’s, 7.38%, 10/15/27(c)			1,857		1,949,850
					4,833,828
Electric Utilities — 0.0%
Energy Harbor Corp. Escrow, 0.01%, 01/06/34(a)(e)(g)			5,000		25,000
Entertainment — 0.0%
AMC Entertainment Holdings, Inc., 10.50%, 04/15/25(c)			2,000		1,600,000
Health Care Equipment & Supplies — 0.3%
Envista Holdings Corp., 2.38%, 06/01/25(c)(d)			12,333		19,496,094
Novocure Ltd., 0.00%, 11/01/25(c)(d)(f)			1,549		1,663,670
					21,159,764
Health Care Providers & Services — 0.0%
Guardant Health, Inc., 0.00%, 11/15/27(c)(d)(f)			3,059		3,384,019

Security		Par (000)		Value
Hotels, Restaurants & Leisure — 0.5%
Caesars Entertainment, Inc.
6.25%, 07/01/25(c)	USD		9,793	$	10,425,089
8.13%, 07/01/27(c)			11,135		12,247,888
MGM Resorts International, 7.75%, 03/15/22			5,000		5,338,500
					28,011,477
Internet & Direct Marketing Retail — 0.2%
Etsy, Inc., 0.13%, 09/01/27(c)(d)			3,184		3,736,485
Fiverr International Ltd., 0.00%, 11/01/25(c)(d)(f)			1,202		1,454,420
Wayfair, Inc., 0.63%, 10/01/25(c)(d)			8,595		8,367,967
					13,558,872
IT Services — 0.2%
Shopify, Inc., 0.13%, 11/01/25(d)			2,009		2,292,771
Square, Inc., 0.25%, 11/01/27(c)(d)			6,053		6,547,615
Wix.com Ltd., 0.00%, 08/15/25(c)(d)(f)			1,204		1,202,664
					10,043,050
Machinery — 0.0%
Middleby Corp., 1.00%, 09/01/25(c)(d)			1,989		2,502,411
Media — 0.1%
Cengage Learning, Inc., 9.50%, 06/15/24(c)			4,500		4,154,464
Metals & Mining — 0.1%
Allegheny Technologies, Inc., 3.50%, 06/15/25(c)(d)			4,240		5,081,081
Oil, Gas & Consumable Fuels — 0.1%
Occidental Petroleum Corp., 2.70%, 08/15/22			5,000		4,926,500
Real Estate Management & Development — 0.1%
Redfin Corp., 0.00%, 10/15/25(c)(d)(f)			4,010		3,976,515
Semiconductors & Semiconductor Equipment — 0.1%
Canadian Solar, Inc., 2.50%, 10/01/25(c)(d)			2,804		3,821,536
SolarEdge Technologies, Inc., 0.00%, 09/15/25(c)(d)(f)			3,037		3,860,540
					7,682,076
Software — 0.3%
Bill.com Holdings, Inc., 0.00%, 12/01/25(c)(d)(f)			6,091		6,467,345
Nice Ltd., 0.00%, 09/15/25(c)(d)(f)			1,194		1,248,689
RingCentral, Inc., 0.00%, 03/15/26(c)(d)(f)			10,016		10,305,755
					18,021,789
Specialty Retail — 0.3%
PetSmart, Inc., 7.13%, 03/15/23(c)			6,000		5,924,700
Staples, Inc.
7.50%, 04/15/26(c)			4,694		4,723,337
10.75%, 04/15/27(c)			9,811		9,222,340
					19,870,377
Wireless Telecommunication Services — 0.1%
Sprint Corp., 7.25%, 09/15/21			5,000		5,206,250
Total Corporate Bonds — 3.5% (Cost: $192,843,000)					212,709,294
Floating Rate Loan Interests
Entertainment — 0.6%
AMC Entertainment Holdings, Inc. (FKA AMC Entertainment, Inc.), Term B-1 Loan, 04/22/26(h)			43,919		33,080,220
Health Care Technology — 0.2%
athenahealth, Inc., Term B Loan (First Lien), (3 mo. LIBOR US + 4.50%, 0.00% Floor), 4.75%, 02/11/26(i)			13,643		13,540,911

SCHEDULE   OF   INVESTMENTS 9

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Leisure Products — 0.1%
NorthPole Newco S.à r.l., Tranche B-1 Term Loan, (3 mo. LIBOR US + 7.00%, 0.00% Floor), 7.22%, 03/18/25(i)	USD		4,230	$	3,803,984
Software — 0.2%
Blackboard, Inc., Term B-5 Loan (First Lien), (3 mo. LIBOR US + 6.00%, 1.00% Floor), 7.00%, 06/30/24(i)			14,850		14,668,979
Total Floating Rate Loan Interests — 1.1% (Cost: $60,110,618)					65,094,094
		Shares
Investment Companies
Equity Funds — 0.1%
Altaba, Inc. Escrow			445,570		6,483,043
Fixed-Income Funds — 0.6%
iShares iBoxx High Yield Corporate Bond ETF(j)			440,927		38,060,819
Total Investment Companies — 0.7% (Cost: $38,303,600)					44,543,862
Preferred Securities
Preferred Stocks — 1.4%
Health Care Equipment & Supplies — 0.4%
Danaher Corp., Series B, 5.00%(d)			16,721		21,803,348
Pharmaceuticals — 0.1%
Elanco Animal Health, Inc., 5.00%(d)			155,400		7,375,284
Software — 0.1%
DataRobot, Inc., Series F (Acquired 10/27/20, cost $2,186,006)(a)(e)(k)			166,337		2,186,001
DoubleVerify Holdings, Inc., Series A (Acquired 11/18/20, cost $2,291,817)(a)(e)(k)			399,473		2,292,975
					4,478,976
Trading Companies & Distributors — 0.6%
WESCO International, Inc., Series A, 10.63%(i)(l)			1,152,049		35,344,863
Wireless Telecommunication Services — 0.2%
2020 Cash Mandatory Exchangeable Trust, 5.25%(c)(d)			12,256		14,856,723
Total Preferred Securities — 1.4% (Cost: $71,466,109)					83,859,194
Rights
Pharmaceuticals — 0.0%
Bristol-Myers Squibb Co., CVR(a)			361,183		426,196
Total Rights — 0.0% (Cost: $1,255,877)					426,196
Total Long-Term Investments — 18.5% (Cost: $873,430,617)					1,119,995,618

Security		Par (000)		Value
Short-Term Securities
Borrowed Bond Agreements — 0.0%
Citigroup Global Markets, Inc., (0.15)% (Purchased on 03/23/20 to be repurchased at $1,408,520, collateralized by T-Mobile U.S.A., Inc., 5.13% due at 04/15/25, par and fair value of USD 1,500,000 and $1,538,925, respectively), Open(m)(n)	USD		1,410	$	1,410,000
		Shares
Money Market Funds — 85.2%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.00%(j)(o)			5,109,330,208		5,109,330,208
SL Liquidity Series, LLC, Money Market Series, 0.18%(j)(o)(p)			49,720,526		49,735,442
					5,159,065,650
		Par (000)
Time Deposits — 0.0%
France — 0.0%
Brown Brothers Harriman & Co., (0.69)%, 12/01/20	EUR		3		3,998
United Kingdom — 0.0%
Brown Brothers Harriman & Co., 0.01%, 12/01/20	GBP		1		1,144
					5,142
Total Short-Term Securities — 85.2% (Cost: $5,160,481,111)					5,160,480,792
Total Investments Before Borrowed Bonds — 103.7% (Cost:  $6,033,911,728)					6,280,476,410
Borrowed Bonds
Corporate Bonds — (0.0)%
Wireless Telecommunication Services — (0.0)%
T-Mobile U.S.A., Inc., 5.13%, 04/15/25	USD		1,500		(1,538,925	)
Total Borrowed Bonds — (0.0)% (Proceeds: $(1,511,250))					(1,538,925	)
Total Investments — 103.7% (Cost: $6,032,400,478)					6,278,937,485
Liabilities in Excess of Other Assets — (3.7)%					(226,828,184	)
Net Assets — 100.0%				$	6,052,109,301

^(a)  Non-income producing security.

^(b)  All or a portion of this security is on loan.

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

^(d)  Convertible security.

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

^(f)  Zero-coupon bond.

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

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

⁽ⁱ⁾  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.

^(j)  Affiliate of the Fund.

10 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

^(k)  Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $4,478,976, representing 0.1% of its net assets as of period end, and an original cost of $4,477,823.

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

^(m)  Certain agreements have no stated maturity and can be terminated by either party at any time.

⁽ⁿ⁾  The amount to be repurchased assumes the maturity will be the day after the period end.

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

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

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the six months ended November 30, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Value at 05/31/20		Purchases at Cost			Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 11/30/20		Shares Held at 11/30/20		Income			Capital Gain Distributions from Underlying Funds
BlackRock Liquidity Funds, T-Fund, Institutional Class	$	4,284,012,733	$	825,317,475	(a)		$	—	$	—		$	—		$	5,109,330,208		5,109,330,208	$	1,429,387			$	—
iShares iBoxx High Yield Corporate Bond ETF		36,341,203		—				—		—			1,719,616			38,060,819		440,927		909,031				—
SL Liquidity Series, LLC, Money Market Series		6,658,975		43,090,531	(a)			—		(10,105	)		(3,959	)		49,735,442		49,720,526		431,152	(b)			—
									$	(10,105	)	$	1,715,657		$	5,197,126,469			$	2,769,570			$	—

^(a)  Represents net amount purchased (sold).

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

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.

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		197		12/18/20	$	35,688	$	(1,828,745	)

Centrally Cleared Credit Default Swaps — Sell Protection

Reference Obligation/Index

Financing Rate Received by the Fund

Payment Frequency

Termination Date

Credit Rating(a)

Notional Amount (000)(b)

Value

Upfront Premium Paid (Received)

Unrealized Appreciation (Depreciation)

CDX.NA.HY.35.V1

5.00

%

Quarterly

12/20/25

B+

USD  72,500

$

7,237,248

$

2,846,309

$

4,390,939

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

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

SCHEDULE   OF   INVESTMENTS 11

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

OTC Total Return Swaps    

Reference Entity	Payment Frequency	Counterparty(z)	Termination Date		Net Notional			Accrued Unrealized Appreciation (Depreciation)			Net Value of Reference Entity			Gross Notional Amount Net Asset Percentage
Equity Securities Long/Short	Monthly	Barclays Bank PLC(a)		11/02/21	$	90,029,919			$   1,896,672	(b)		$  92,240,658			7.2	%
	Monthly	Citibank N.A.(c)		02/24/23		(185,932,312	)		(50,395,601	) (d)		(234,313,481	)		3.6
	Monthly	Citibank N.A.(e)		02/24/23–11/16/23		7,136,504			89,447	(f)		7,448,593			0.4
	Monthly	Credit Suisse International(g)		02/08/23–02/15/23		107,298,318			2,753,009	(h)		110,155,432			7.3
	Monthly	Credit Suisse International(i)		02/08/23		(21,872,031	)		(2,606,845	) (j)		(24,479,461	)		0.4
	Monthly	Goldman Sachs Bank USA(k)		08/31/21		(3,131	)		174	(l)		(2,816	)		0.0
	Monthly	Goldman Sachs Bank USA(m)		02/27/23		606,156,449			5,805,462	(n)		610,093,274			26.6
	Monthly	JPMorgan Chase Bank N.A.(o)		02/08/23		41,821,201			(11,747,149	) (p)		29,789,311			11.8
	Monthly	JPMorgan Chase Bank N.A.(q)		02/08/23		36,333,740			24,242,495	(r)		59,870,086			0.6
	Monthly	Morgan Stanley & Co. International PLC(s)		07/06/21–07/06/23		(99,865,803	)		6,290,295	(t)		(92,979,674	)		5.4
	Monthly	Morgan Stanley & Co. International PLC(u)		12/04/22–03/27/23		63,651,793			(117,471	) (v)		62,661,396			1.1
	Monthly	Morgan Stanley & Co. International PLC(w)		05/18/23–05/19/23		(2,476,519	)		(2,146,496	)		(4,623,015	)		0.0
	Monthly	UBS AG(x)		03/21/24–12/10/24		62,369,928			2,276,027	(y)		64,782,132			7.9
									$(23,659,981	)		$680,642,435

^(b)  Amount includes $(314,067) of net dividends and financing fees.

^(d)  Amount includes $(2,014,432) of net dividends and financing fees.

^(f)  Amount includes $(222,642) of net dividends and financing fees.

^(h)  Amount includes $(104,105) of net dividends and financing fees.

^(j)  Amount includes $585 of net dividends and financing fees.

^(l)  Amount includes $(141) of net dividends and financing fees.

⁽ⁿ⁾  Amount includes $1,868,637 of net dividends and financing fees.

^(p)  Amount includes $284,741 of net dividends and financing fees.

^(r)  Amount includes $706,149 of net dividends and financing fees.

^(t)  Amount includes $(595,834) of net dividends and financing fees.

^(v)  Amount includes $872,926 of net dividends and financing fees.

^(y)  Amount includes $(136,177) of net dividends and financing fees.

^(z)  The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions.

12 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

The following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest:

	(a)	(c)	(e)
Range:	17-20 basis points	18-313 basis points	18-30 basis points
Benchmarks:	USD Overnight Bank Funding Rate	Intercontinental Exchange Libor: USD 1 Month	Australian Bank Bill Swap Rate: AUD 1 Month
			Euro Interbank Offered Rate: EUR 1 Week
			Intercontinental Exchange LIBOR:
			USD 1 Month
			USD 1 Week
	(g)	(i)	(k)
Range:	20-30 basis points	20 basis points	20 basis points
Benchmarks:	Intercontinental Exchange LIBOR:	USD Overnight Bank Funding Rate	U.S. Overnight Federal Funds Effective Rate
	EUR 1 Month
	USD 1 Month
	Sterling LIBOR:
	GBP 1 Month
	USD Overnight Bank Funding Rate
	(m)	(o)	(q)
Range:	20-25 basis points	18-28 basis points	18 basis points
Benchmarks:	Sterling Overnight Index Average: GBP 1 Day	Sterling Overnight Index Average: GBP 1 Day	USD Overnight Bank Funding Rate
	U.S. Overnight Federal Funds Effective Rate	USD Overnight Bank Funding Rate
	(s)	(u)	(w)
Range:	15-93 basis points	20 basis points	15 basis points
Benchmarks:	U.S. Overnight Federal Funds Effective Rate	U.S. Overnight Federal Funds Effective Rate	U.S. Overnight Federal Funds Effective Rate
	(x)
Range:	25-40 basis points
Benchmarks:	Euro OverNight Index Average
	RBA Interbank Overnight Cash Rate

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Barclays Bank PLC as of period end, termination date November 2, 2021:

	Shares		Value		% of Basket Value
Reference Entity — Long
Common Stocks
Electronic Equipment, Instruments & Components
Fitbit, Inc., Class A		1,617,662	$	11,614,813		12.6	%
Health Care Equipment & Supplies
Varian Medical Systems, Inc.		286,636		49,868,931		54.1
Insurance
National General Holdings Corp.		697,555		23,772,674		25.7
Willis Towers Watson PLC		641,061		133,462,490		144.7
				157,235,164
Semiconductors & Semiconductor Equipment
Inphi Corp.		323,052		50,115,057		54.3
Total Reference Entity — Long				268,833,965

	Shares		Value			% of Basket Value
Reference Entity — Short
Common Stocks
Insurance
Aon PLC, Class A		692,347	$	(141,854,977	)		(153.8	)%
Semiconductors & Semiconductor Equipment
Marvell Technology Group Ltd.		750,450		(34,738,330	)		(37.6	)
Total Reference Entity — Short				(176,593,307	)
Net Value of Reference Entity — Barclays Bank PLC			$	92,240,658

SCHEDULE   OF   INVESTMENTS 13

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund     

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Citibank N.A. as of period end, termination date February 24, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Aerospace & Defense
Howmet Aerospace, Inc.		51,939	$	1,218,489			(0.5	)%
Health Care Providers & Services
Anthem, Inc.		49,296		15,356,690			(6.5	)
Cigna Corp.		2,102		439,612			(0.2	)
				15,796,302
Media
ViacomCBS, Inc., Class B		22,974		810,523			(0.4	)
Metals & Mining
Arconic Corp.		12,984		357,190			(0.2	)
Oil, Gas & Consumable Fuels
Williams Cos., Inc.		127,180		2,668,236			(1.1	)
Total Reference Entity — Long				20,850,740
Reference Entity — Short
Common Stocks
Banks
Bank of America Corp.		2,041		(57,475	)		0.0
JPMorgan Chase & Co.		524		(61,769	)		0.1
				(119,244	)
Chemicals
Air Products and Chemicals, Inc.		22		(6,163	)		0.0
Albemarle Corp.		37		(5,031	)		0.0
Eastman Chemical Co.		33		(3,214	)		0.0
Ecolab, Inc.		25		(5,554	)		0.0
FMC Corp.		45		(5,221	)		0.0
Livent Corp.		42		(637	)		0.0
LyondellBasell Industries NV, Class A		33		(2,808	)		0.0
Mosaic Co.		141		(3,096	)		0.0
PPG Industries, Inc.		31		(4,550	)		0.0
				(36,274	)
Construction Materials
Martin Marietta Materials, Inc.		17		(4,516	)		0.0
Vulcan Materials Co.		30		(4,189	)		0.0
				(8,705	)
Containers & Packaging
Avery Dennison Corp.		33		(4,928	)		0.0
Ball Corp.		87		(8,353	)		0.0
International Paper Co.		65		(3,216	)		0.0
Sealed Air Corp.		81		(3,650	)		0.0
Westrock Co.		54		(2,279	)		0.0
				(22,426	)

	Shares		Value			% of Basket Value
Health Care Equipment & Supplies
Becton Dickinson and Co.		6,522	$	(1,531,627	)		0.7	%
Hologic, Inc.		24,939		(1,724,033	)		0.7
				(3,255,660	)
Health Care Providers & Services
UnitedHealth Group, Inc.		6,679		(2,246,415	)		1.0
Life Sciences Tools & Services
Agilent Technologies, Inc.		17,481		(2,043,529	)		0.9
Bio-Rad Laboratories, Inc., Class A		3,385		(1,822,822	)		0.8
Bruker Corp.		38,367		(1,941,754	)		0.8
Illumina, Inc.		4,854		(1,563,425	)		0.7
Mettler-Toledo International, Inc.		4,976		(5,722,599	)		2.4
PerkinElmer, Inc.		14,252		(1,895,516	)		0.8
Thermo Fisher Scientific, Inc.		4,104		(1,908,278	)		0.8
				(16,897,923	)
Metals & Mining
Freeport-McMoRan, Inc.		198		(4,631	)		0.0
Newmont Corp.		87		(5,117	)		0.0
Nucor Corp.		57		(3,061	)		0.0
				(12,809	)
Oil, Gas & Consumable Fuels
Enbridge, Inc.		38,144		(1,190,474	)		0.5
Kinder Morgan, Inc.		111,406		(1,602,019	)		0.7
				(2,792,493	)
Pharmaceuticals
Johnson & Johnson		3,597		(520,414	)		0.2
Merck & Co., Inc.		6,642		(533,950	)		0.2
				(1,054,364	)
Semiconductors & Semiconductor Equipment
Advanced Micro Devices, Inc.		48,250		(4,470,845	)		1.9
Analog Devices, Inc.		17,815		(2,477,710	)		1.1
Applied Materials, Inc.		38,227		(3,152,963	)		1.3
ASML Holding NV, NY Shares		6,281		(2,749,382	)		1.2
KLA Corp.		13,547		(3,413,438	)		1.5
Lam Research Corp.		10,679		(4,833,956	)		2.1
Maxim Integrated Products, Inc.		31,562		(2,620,908	)		1.1
Microchip Technology, Inc.		19,974		(2,684,306	)		1.1
Micron Technology, Inc.		38,521		(2,468,811	)		1.0
MKS Instruments, Inc.		6,136		(846,645	)		0.4
Monolithic Power Systems, Inc.		3,237		(1,035,710	)		0.4
NXP Semiconductors NV		104,331		(16,528,117	)		7.0
ON Semiconductor Corp.		31,045		(892,544	)		0.4
Qorvo, Inc.		11,276		(1,766,724	)		0.8
Skyworks Solutions, Inc.		16,174		(2,283,284	)		1.0
Taiwan Semiconductor Manufacturing Co. Ltd., ADR		39,299		(3,812,789	)		1.6
Teradyne, Inc.		16,090		(1,775,371	)		0.8
Texas Instruments, Inc.		16,419		(2,647,564	)		1.1
Xilinx, Inc.		15,577		(2,267,232	)		1.0
				(62,728,299	)
Investment Companies
Equity Funds
Alerian MLP ETF		440,314		(11,003,447	)		4.7
Energy Select Sector SPDR Fund		2,200		(80,872	)		0.0
Industrial Select Sector SPDR Fund		1,030,567		(90,720,813	)		38.7
iShares U.S. Real Estate ETF		353		(29,708	)		0.0

14 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

	Shares		Value			% of Basket Value
Equity Funds
SPDR S&P 500 ETF Trust		177,082	$	(64,114,309	)		27.4	%
SPDR S&P Regional Banking ETF		850		(40,460	)		0.0
				(165,989,609	)
Total Reference Entity — Short				(255,164,221	)
Net Value of Reference Entity — Citibank N.A.			$	(234,313,481	)

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Citibank N.A. as of period end, termination dates February 24, 2023 to November 16, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Internet & Direct Marketing Retail
Grubhub, Inc.		55,846	$	3,928,208			52.7	%
Life Sciences Tools & Services
QIAGEN NV		84,000		4,049,058			54.4
Metals & Mining
Saracen Mineral Holdings Ltd.		11,585		40,241			0.5
Multi-Utilities
Suez SA		392,521		7,508,471			100.8
Total Reference Entity — Long				15,525,978
Reference Entity — Short
Common Stocks
Internet & Direct Marketing Retail
Just Eat Takeaway.com NV		37,472		(3,987,843	)		(53.5	)
Life Sciences Tools & Services
QIAGEN NV		84,000		(4,049,058	)		(54.4	)
Metals & Mining
Northern Star Resources Ltd.		4,359		(40,484	)		(0.5	)
Total Reference Entity — Short				(8,077,385	)
Net Value of Reference Entity — Citibank N.A.			$	7,448,593

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Credit Suisse International as of period end, termination dates February 8, 2023 to February 15, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Hotels, Restaurants & Leisure
William Hill PLC		11,418,531	$	40,689,561			36.9	%
Insurance
RSA Insurance Group PLC		5,100,348		45,335,016			41.2
Internet & Direct Marketing Retail
Grubhub, Inc.		1,738,011		122,251,694			111.0
Multi-Utilities
Suez SA		392,522		7,508,490			6.8
Semiconductors & Semiconductor Equipment
Inphi Corp.		388,260		60,230,774			54.7
Total Reference Entity — Long				276,015,535
Reference Entity — Short
Common Stocks
Internet & Direct Marketing Retail
Just Eat Takeaway.com NV		1,166,205		(124,109,810	)		(112.7	)
Semiconductors & Semiconductor Equipment
Marvell Technology Group Ltd.		901,929		(41,750,293	)		(37.9	)
Total Reference Entity — Short				(165,860,103	)
Net Value of Reference Entity — Credit Suisse International			$	110,155,432

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Credit Suisse International as of period end, termination date February 8, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Short
Common Stocks
Aerospace & Defense
Parsons Corp.		15,305	$	(500,473	)		2.1	%
Diversified Consumer Services
Chegg, Inc.		15,514		(1,209,006	)		4.9
Health Care Equipment & Supplies
Novocure Ltd.		5,920		(743,848	)		3.0

SCHEDULE   OF   INVESTMENTS 15

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

	Shares		Value			% of Basket Value
Health Care Providers & Services
Guardant Health, Inc.		15,272	$	(1,849,745	)		7.6	%
Internet & Direct Marketing Retail
Etsy, Inc.		11,054		(1,776,378	)		7.3
Fiverr International Ltd.		4,078		(816,946	)		3.3
Wayfair, Inc., Class A		11,807		(3,003,228	)		12.3
				(5,596,552	)
IT Services
Square, Inc., Class A		12,183		(2,570,125	)		10.5
Wix.com Ltd.		1,425		(363,988	)		1.5
				(2,934,113	)
Real Estate Management & Development
Redfin Corp.		32,409		(1,552,067	)		6.3
Semiconductors & Semiconductor Equipment
Canadian Solar, Inc.		63,772		(2,726,891	)		11.1
Software
Bill.com Holdings, Inc.		22,301		(2,736,556	)		11.2
Nice Ltd.		2,243		(546,664	)		2.2
RingCentral, Inc., Class A		13,747		(4,083,546	)		16.7
				(7,366,766	)
Total Reference Entity — Short				(24,479,461	)
Net Value of Reference Entity — Credit Suisse International			$	(24,479,461	)

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date August 31, 2021:

	Shares		Value			% of Basket Value
Reference Entity — Short
Common Stocks
Banks
Bank of America Corp		100	$	(2,816	)		100.0	%
Net Value of Reference Entity — Goldman Sachs Bank USA			$	(2,816	)

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination date February 27, 2023:

	Shares		Value		% of Basket Value
Reference Entity — Long
Common Stocks
Capital Markets
Eaton Vance Corp		1,433,702	$	96,029,360		15.7	%

	Shares		Value			% of Basket Value
Commercial Services & Supplies
G4S PLC		11,614,646	$	34,180,300			5.6	%
Electronic Equipment, Instruments & Components
Fitbit, Inc., Class A		3,228,565		23,181,096			3.8
Equity Real Estate Investment Trusts (REITs)
Taubman Centers, Inc.		606,185		25,896,223			4.3
Health Care Equipment & Supplies
Varian Medical Systems, Inc.		1,494,292		259,976,922			42.6
Hotels, Restaurants & Leisure
Dunkin’ Brands Group, Inc.		486,941		51,781,306			8.5
Internet & Direct Marketing Retail
Grubhub, Inc.		1,876,835		132,016,574			21.6
Semiconductors & Semiconductor Equipment
Maxim Integrated Products, Inc.		1,615,352		134,138,830			22.0
Xilinx, Inc.		1,347,823		196,175,638			32.1
				330,314,468
Software
Slack Technologies, Inc., Class A		429,254		18,406,411			3.0
Specialty Retail
Tiffany & Co.		963,564		126,689,395			20.8
Trading Companies & Distributors
HD Supply Holdings, Inc.		1,158,700		64,632,286			10.6
Total Reference Entity — Long				1,163,104,341
Reference Entity — Short
Common Stocks
Capital Markets
Morgan Stanley		836,278		(51,707,069	)		(8.5	)
Internet & Direct Marketing Retail
Just Eat Takeaway.com NV		1,259,356		(134,023,121	)		(21.9	)
Semiconductors & Semiconductor Equipment
Advanced Micro Devices, Inc.		2,322,839		(215,234,262	)		(35.3	)
Analog Devices, Inc.		1,017,671		(141,537,682	)		(23.2	)
				(356,771,944	)
Software
salesforce.com, Inc.		42,754		(10,508,933	)		(1.7	)
Total Reference Entity — Short				(553,011,067	)
Net Value of Reference Entity — Goldman Sachs Bank USA			$	610,093,274

16 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with JPMorgan Chase Bank N.A. as of period end, termination date February 8, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Capital Markets
Eaton Vance Corp.		235,573	$	15,778,680			53.0	%
Hotels, Restaurants & Leisure
William Hill PLC		1,929,726		6,876,515			23.1
Insurance
Willis Towers Watson PLC		536,126		111,616,072			374.7
Interactive Media & Services
Sogou, Inc., ADR		348,142		3,070,612			10.3
Professional Services
CoreLogic, Inc.		454,891		35,254,053			118.3
Semiconductors & Semiconductor Equipment
Maxim Integrated Products, Inc.		2,375,359		197,249,811			662.1
Xilinx, Inc.		339,958		49,480,887			166.1
				246,730,698
Total Reference Entity — Long				419,326,630
Reference Entity — Short
Common Stocks
Capital Markets
Morgan Stanley		137,410		(8,496,060	)		(28.5	)
Insurance
Aon PLC, Class A		578,961		(118,623,319	)		(398.2	)
Semiconductors & Semiconductor Equipment
Advanced Micro Devices, Inc.		585,883		(54,287,919	)		(182.2	)
Analog Devices, Inc.		1,496,477		(208,130,021	)		(698.7	)
				(262,417,940	)
Total Reference Entity — Short				(389,537,319	)
Net Value of Reference Entity — JPMorgan Chase Bank N.A.			$	29,789,311

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with JPMorgan Chase Bank N.A. as of period end, termination date February 8, 2023:

	Shares		Value		% of Basket Value
Reference Entity — Long
Common Stocks
Semiconductors & Semiconductor Equipment
NXP Semiconductors NV		377,920	$	59,870,086		100.0	%
Net Value of Reference Entity — JPMorgan Chase Bank N.A.			$	59,870,086

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co. International PLC as of period end, termination dates July 6, 2021 to July 6, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Aerospace & Defense
Raytheon Technologies Corp.		121,506	$	8,714,410			(9.4	)%
TransDigm Group, Inc.		58,944		34,139,776			(36.7	)
				42,854,186
Building Products
Carrier Global Corp.		287,139		10,931,382			(11.8	)
Chemicals
Corteva, Inc.		879,157		33,689,296			(36.2	)
Dow, Inc.		100,845		5,345,794			(5.8	)
DuPont de Nemours, Inc.		490,868		31,140,666			(33.5	)
				70,175,756
Health Care Providers & Services
Anthem, Inc.		54,225		16,892,172			(18.2	)
Cigna Corp.		29,836		6,239,901			(6.7	)
Humana, Inc.		48,839		19,560,996			(21.0	)
				42,693,069
Machinery
Otis Worldwide Corp.		93,746		6,275,357			(6.7	)
Total Reference Entity — Long				172,929,750
Reference Entity — Short
Common Stocks
Banks
Bank of America Corp.		4,300		(121,088	)		0.1
Citigroup, Inc.		2,521		(138,832	)		0.2
JPMorgan Chase & Co.		1,148		(135,326	)		0.1
				(395,246	)
Chemicals
Air Products and Chemicals, Inc.		11,686		(3,273,716	)		3.5

SCHEDULE   OF   INVESTMENTS 17

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

	Shares		Value			% of Basket Value
Chemicals
Albemarle Corp.		32,843	$	(4,465,663	)		4.8	%
Eastman Chemical Co.		35,714		(3,478,543	)		3.8
Ecolab, Inc.		14,295		(3,175,634	)		3.4
FMC Corp.		24,308		(2,819,971	)		3.0
Livent Corp.		1,851		(28,080	)		0.0
LyondellBasell Industries NV, Class A		43,628		(3,712,743	)		4.0
Mosaic Co.		170,327		(3,740,381	)		4.0
PPG Industries, Inc.		27,066		(3,972,477	)		4.3
				(28,667,208	)
Commercial Services & Supplies
Republic Services, Inc.		102,077		(9,872,888	)		10.6
Waste Management, Inc.		81,141		(9,666,327	)		10.4
				(19,539,215	)
Construction Materials
Martin Marietta Materials, Inc.		11,187		(2,971,603	)		3.2
Vulcan Materials Co.		19,299		(2,695,105	)		2.9
				(5,666,708	)
Containers & Packaging
Avery Dennison Corp.		19,864		(2,966,490	)		3.2
Ball Corp.		33,280		(3,195,213	)		3.4
International Paper Co.		61,205		(3,028,423	)		3.3
Sealed Air Corp.		70,747		(3,187,860	)		3.4
Westrock Co.		70,992		(2,996,572	)		3.2
				(15,374,558	)
Health Care Providers & Services
UnitedHealth Group, Inc.		15,366		(5,168,200	)		5.6
IT Services
Shopify, Inc., Class A		817		(890,841	)		1.0
Machinery
Middleby Corp.		11,845		(1,610,802	)		1.7
Metals & Mining
Freeport-McMoRan, Inc.		245,299		(5,737,543	)		6.2
Newmont Corp.		40,001		(2,352,859	)		2.5
Nucor Corp.		61,650		(3,310,605	)		3.6
				(11,401,007	)
Semiconductors & Semiconductor Equipment
SolarEdge Technologies, Inc.		7,902		(2,196,598	)		2.4
Investment Companies
Equity Funds
Industrial Select Sector SPDR Fund		525,025		(46,217,951	)		49.7
iShares Russell 2000 ETF		73,136		(13,239,079	)		14.2
iShares U.S. Real Estate ETF		49,467		(4,163,143	)		4.5
Materials Select Sector SPDR Fund		214,440		(15,223,095	)		16.4
SPDR S&P 500 ETF Trust		255,029		(92,335,800	)		99.3
SPDR S&P Regional Banking ETF		1,922		(91,487	)		0.1
VanEck Vectors Semiconductor ETF		17,873		(3,728,486	)		4.0
				(174,999,041	)
Total Reference Entity — Short				(265,909,424	)
Net Value of Reference Entity — Morgan Stanley & Co. International PLC			$	(92,979,674	)

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co. International PLC as of period end, termination dates December 4, 2022 to March 27, 2023:

	Shares		Value		% of Basket Value
Reference Entity — Long
Common Stocks
Specialty Retail
Tiffany & Co.		476,585	$	62,661,396		100.0	%
Net Value of Reference Entity — Morgan Stanley & Co. International PLC			$	62,661,396

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co. International PLC as of period end, termination dates May 18, 2023 to May 19, 2023:

	Shares		Value			% of Basket Value
Reference Entity — Short
Health Care Equipment & Supplies
Envista Holdings Corp.		155,500	$	(4,623,015	)		100.0	%
Net Value of Reference Entity — Morgan Stanley & Co. International PLC			$	(4,623,015	)

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with UBS AG as of period end, termination dates March 21, 2024 to December 10, 2024:

	Shares		Value			% of Basket Value
Reference Entity — Long
Common Stocks
Automobiles
Fiat Chrysler Automobiles NV		15,919,775	$	248,981,279			384.3	%
Beverages
Coca-Cola Amatil Ltd.		3,262,546		30,212,089			46.7
Metals & Mining
Saracen Mineral Holdings Ltd.		54,654		189,845			0.3
Total Reference Entity — Long				279,383,213
Reference Entity — Short
Common Stocks
Automobiles
Peugeot SA		9,138,881		(214,410,056	)		(331.0	)

18 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

	Shares		Value			% of Basket Value
Metals & Mining
Northern Star Resources Ltd.		20,568	$	(191,025	)		(0.3	)%
Total Reference Entity — Short				(214,601,081	)
Net Value of Reference Entity — UBS AG			$	64,782,132

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

	Swaps Premiums Paid		Swap Premiums Received	Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps(a)	$	2,846,309	$  —	$	4,390,939	$	—
OTC Swaps		—	—		43,353,581		(67,013,562	)

^(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 Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts			Credit         Contracts		Equity     Contracts		Foreign Currency     Exchange Contracts			Interest Rate     Contracts			Other     Contracts			Total
Assets — Derivative Financial Instruments
Swaps — centrally cleared
Unrealized appreciation(a)		$	—	$	4,390,939	$	—		$	—		$	—		$	—	$	4,390,939
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid			—		—		43,353,581			—			—			—		43,353,581
		$	—	$	4,390,939	$	43,353,581		$	—		$	—		$	—	$	47,744,520
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation(a)		$	—	$	—	$	1,828,745		$	—		$	—		$	—	$	1,828,745
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received			—		—		67,013,562			—			—			—		67,013,562
		$	—	$	—	$	68,842,307		$	—		$	—		$	—	$	68,842,307

^(a)  Net cumulative unrealized appreciation (depreciation) on futures and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statement 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).

SCHEDULE   OF   INVESTMENTS 19

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

For the six months ended November 30, 2020, the effect of derivative financial instruments in the Statement of Operations was as follows:

	Commodity Contracts			Credit Contracts			Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from
Futures contracts		$	—	$	—		$	23,155,907			$	—		$	—		$	—	$	23,155,907
Swaps			—		18,830,675			93,467,844				—			—			—		112,298,519
		$	—	$	18,830,675		$	116,623,751			$	—		$	—		$	—	$	135,454,426
Net Change in Unrealized Appreciation (Depreciation) on
Futures contracts		$	—	$	—		$	(18,864,352	)		$	—		$	—		$	—	$	(18,864,352	)
Swaps			—		(5,551,817	)		(32,214,033	)			—			—			—		(37,765,850	)
		$	—	$	(5,551,817	)	$	(51,078,385	)		$	—		$	—		$	—	$	(56,630,202	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts
Average notional value of contracts — short	$	17,844,260
Credit default swaps
Average notional value — sell protection	$	132,737,500
Total return swaps
Average notional amount	$	749,310,316

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

Derivative Financial Instruments – Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments
Futures contracts	$	131,005		$	—
Swaps — centrally cleared		157,430			—
Swaps — OTC(a)		43,353,581			67,013,562
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	43,642,016		$	67,013,562
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(288,435	)		—
Total derivative assets and liabilities subject to an MNA	$	43,353,581		$	67,013,562

^(a)  Includes unrealized appreciation (depreciation) on OTC swaps in the Statement of Assets and Liabilities.

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset(a)			Non- Cash Collateral Received			Cash Collateral Received(b)			Net Amount of Derivative Assets(c)
Barclays Bank PLC	$	1,896,672	$	—			$	—	$	(1,840,000	)	$	56,672
Citibank N.A.		89,447		(89,447	)			—		—			—
Credit Suisse International		2,753,009		(2,606,845	)			—		(146,164	)		—
Goldman Sachs Bank USA		5,805,636		—				—		(5,805,636	)		—
JPMorgan Chase Bank N.A		24,242,495		(11,747,149	)			—		(12,495,346	)		—
Morgan Stanley & Co. International PLC		6,290,295		(2,263,967	)			—		(3,840,000	)		186,328
UBS AG		2,276,027		—				—		—			2,276,027
	$	43,353,581	$	(16,707,408	)		$	—	$	(24,127,146	)	$	2,519,027

20 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

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(d)
Citibank N.A.	$	50,395,601	$	(89,447	)		$	—		$	—	$	50,306,154
Credit Suisse International		2,606,845		(2,606,845	)			—			—		—
JPMorgan Chase Bank N.A.		11,747,149		(11,747,149	)			—			—		—
Morgan Stanley & Co. International PLC		2,263,967		(2,263,967	)			—			—		—
	$	67,013,562	$	(16,707,408	)		$	—		$	—	$	50,306,154

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

^(b)  Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

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

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. 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 tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy. The breakdown of the Fund’s investments into major categories is disclosed in the Schedule of Investments above.

	Level 1		Level 2		Level 3		Total
Assets
Investments
Long-Term Investments
Common Stocks
Aerospace & Defense	$	68,035,783	$	—	$	—	$	68,035,783
Automobiles		10,081,601		—		—		10,081,601
Banks		1,150,306		—		—		1,150,306
Building Products		4,393,024		—		—		4,393,024
Chemicals		57,169,718		2,386,349		—		59,556,067
Commercial Services & Supplies		35,827,308		—		—		35,827,308
Consumer Finance		6,159,286		—		—		6,159,286
Diversified Consumer Services		3,990,036		—		—		3,990,036
Diversified Telecommunication Services		6,743,169		17,981,370		—		24,724,539
Electric Utilities		—		1,226,389		—		1,226,389
Electrical Equipment		—		12,706,157		—		12,706,157
Electronic Equipment, Instruments & Components		12,192,685		—		—		12,192,685
Entertainment		2,989,589		—		—		2,989,589
Equity Real Estate Investment Trusts (REITs)		12,334,549		—		—		12,334,549
Food & Staples Retailing		1,527,964		—		—		1,527,964
Food Products		22,970,684		—		—		22,970,684
Health Care Equipment & Supplies		67,254,972		—		—		67,254,972
Health Care Providers & Services		53,295,552		—		—		53,295,552
Health Care Technology		2,949,492		—		—		2,949,492
Hotels, Restaurants & Leisure		28,016,462		—		—		28,016,462
Insurance		2,121,505		—		—		2,121,505
Interactive Media & Services		8,476,801		—		—		8,476,801
IT Services		14,411,898		—		—		14,411,898
Life Sciences Tools & Services		90,697,051		—		—		90,697,051
Machinery		214,617		—		—		214,617
Media		11,600,206		—		—		11,600,206
Metals & Mining		24,335,979		—		—		24,335,979
Oil, Gas & Consumable Fuels		21,386,320		—		—		21,386,320
Personal Products		27,959,599		—		—		27,959,599
Pharmaceuticals		42,783,104		—		—		42,783,104
Real Estate Management & Development		3,736,027		—		—		3,736,027
Software		17,216,745		—		—		17,216,745
Specialty Retail		6,280,650		—		—		6,280,650
Wireless Telecommunication Services		10,760,031		—		—		10,760,031

SCHEDULE   OF   INVESTMENTS 21

Schedule of Investments (unaudited) (continued) November 30, 2020 BlackRock Event Driven Equity Fund

	Level 1			Level 2			Level 3		Total
Corporate Bonds	$	—		$	207,684,294		$	5,025,000	$	212,709,294
Floating Rate Loan Interests		—			65,094,094			—		65,094,094
Investment Companies		44,543,862			—			—		44,543,862
Preferred Securities		79,380,218			—			4,478,976		83,859,194
Rights		426,196			—			—		426,196
Short-Term Securities
Borrowed Bond Agreements		—			1,410,000			—		1,410,000
Money Market Funds		5,109,330,208			—			—		5,109,330,208
Time Deposits		—			5,142			—		5,142
Liabilities
Borrowed Bonds		—			(1,538,925	)		—		(1,538,925	)
	$	5,912,743,197		$	306,954,870		$	9,503,976		6,229,202,043
Investments Valued at NAV(a)										49,735,442
									$	6,278,937,485
Derivative Financial Instruments(b)
Assets
Credit Contracts	$	—		$	4,390,939		$	—	$	4,390,939
Equity Contracts		—			43,353,581			—		43,353,581
Liabilities
Equity Contracts		(1,828,745	)		(67,013,562	)		—		(68,842,307	)
	$	(1,828,745	)	$	(19,269,042	)	$	—	$	(21,097,787	)

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

^(b)  Derivative financial instruments are swaps and futures contracts. Swaps and Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

22 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Statement of Assets and Liabilities (unaudited)

November 30, 2020

	BlackRock Event   Driven Equity   Fund
ASSETS
Investments at value — unaffiliated(a)(b)	$	1,083,349,941
Investments at value — affiliated(c)		5,197,126,469
Cash		558,598
Cash pledged:
Collateral — borrowed bond agreements		158,065
Collateral — OTC derivatives		3,120,000
Futures contracts		2,627,000
Centrally cleared swaps		7,821,000
Foreign currency at value(d)		2,451
Receivables:
Investments sold		927,368
Securities lending income — affiliated		57,334
Swaps		41,662,248
Capital shares sold		17,196,633
Dividends — affiliated		130,456
Dividends — unaffiliated		498,605
Interest — unaffiliated		3,079,625
Variation margin on futures contracts		131,005
Variation margin on centrally cleared swaps		157,430
Unrealized appreciation on OTC swaps		43,353,581
Prepaid expenses		133,693
Total assets		6,402,091,502
LIABILITIES
Cash received as collateral for OTC derivatives		179,750,000
Borrowed bonds at value(e)		1,538,925
Cash collateral on securities loaned at value		49,745,343
Payables:
Investments purchased		28,575,766
Swaps		10,471,244
Capital shares redeemed		6,033,249
Interest expense		9,926
Investment advisory fees		5,126,358
Directors’ and Officer’s fees		12,598
Other accrued expenses		1,574,550
Other affiliate fees		41,150
Service and distribution fees		89,530
Unrealized depreciation on OTC swaps		67,013,562
Total liabilities		349,982,201
NET ASSETS	$	6,052,109,301
NET ASSETS CONSIST OF
Paid-in capital	$	5,881,779,351
Accumulated earnings		170,329,950
NET ASSETS	$	6,052,109,301
(a) Investments at cost — unaffiliated	$	839,676,090
(b) Securities loaned at value	$	48,664,479
(c)  Investments at cost — affiliated	$	5,194,235,638
(d) Foreign currency at cost	$	4,683
(e) Proceeds received from borrowed bonds	$	1,511,250

FINANCIAL   STATEMENTS 23

Statement of Assets and Liabilities (unaudited) (continued)

November 30, 2020

	BlackRock Event   Driven Equity   Fund
NET ASSET VALUE
Institutional
Net assets	$	5,797,650,760
Shares outstanding		584,390,373
Net asset value	$	9.92
Shares authorized		1,100,000,000
Par value	$	0.10
Investor A
Net assets	$	183,939,564
Shares outstanding		19,365,394
Net asset value	$	9.50
Shares authorized		100,000,000
Par value	$	0.10
Investor C
Net assets	$	70,518,977
Shares outstanding		8,337,013
Net asset value	$	8.46
Shares authorized		100,000,000
Par value	$	0.10

See notes to financial statements.

24 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Statement of Operations (unaudited)

Six Months Ended November 30, 2020

	BlackRock Event Driven Equity Fund
INVESTMENT INCOME
Dividends — unaffiliated	$	3,868,609
Dividends — affiliated		2,338,418
Interest — unaffiliated		7,380,687
Securities lending income — affiliated — net		431,152
Foreign taxes withheld		(5,589	)
Total investment income		14,013,277
EXPENSES
Investment advisory		30,951,960
Transfer agent — class specific		2,619,445
Service and distribution — class specific		556,099
Registration		433,826
Accounting services		203,707
Directors and Officer		65,691
Professional		61,951
Printing and postage		36,203
Custodian		25,596
Miscellaneous		29,303
Total expenses excluding interest expense		34,983,781
Interest expense		38,492
Total expenses		35,022,273
Less:
Fees waived and/or reimbursed by the Manager		(1,699,755	)
Total expenses after fees waived and/or reimbursed		33,322,518
Net investment loss		(19,309,241	)
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		14,285,365
Investments — affiliated		(10,105	)
Futures contracts		23,155,907
Foreign currency transactions		(17,624	)
Swaps		112,298,519
		149,712,062
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		217,614,287
Investments — affiliated		1,715,657
Borrowed bonds		(8,925	)
Futures contracts		(18,864,352	)
Foreign currency translations		1,525,168
Swaps		(37,765,850	)
		164,215,985
Net realized and unrealized gain		313,928,047
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	294,618,806

See notes to financial statements.

FINANCIAL   STATEMENTS 25

Statements of Changes in Net Assets

	BlackRock Event Driven Equity Fund
	Six Months Ended 11/30/20 (unaudited)			Period from 10/01/19 to 05/31/20			Year Ended 09/30/19
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income (loss)	$	(19,309,241	)	$	1,163,923		$	21,406,890
Net realized gain (loss)		149,712,062			(15,231,468	)		116,924,677
Net change in unrealized appreciation (depreciation)		164,215,985			53,931,778			(7,135,567	)
Net increase in net assets resulting from operations		294,618,806			39,864,233			131,196,000
DISTRIBUTIONS TO SHAREHOLDERS(a)
Institutional		(151,862,427	)		(128,011,849	)		(20,637,746	)
Investor A		(5,228,833	)		(4,687,762	)		(766,494	)
Investor C		(2,104,275	)		(1,788,885	)		(176,256	)
Decrease in net assets resulting from distributions to shareholders		(159,195,535	)		(134,488,496	)		(21,580,496	)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		911,484,667			1,797,158,781			2,367,258,732
NET ASSETS
Total increase in net assets		1,046,907,938			1,702,534,518			2,476,874,236
Beginning of period		5,005,201,363			3,302,666,845			825,792,609
End of period	$	6,052,109,301		$	5,005,201,363		$	3,302,666,845

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

See notes to financial statements.

26 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Financial Highlights  

(For a share outstanding throughout each period)

		BlackRock Event Driven Equity Fund
		Institutional
	Six Months Ended 11/30/20 (unaudited)				Period from 10/01/19     to 05/31/20				Year Ended September 30,
										2019			2018			2017			2016			2015
Net asset value, beginning of period		$	9.70			$	9.88		$	9.39		$	9.58		$	8.80		$	8.94		$	14.55
Net investment income (loss)(a)			(0.03	)			0.00	(b)		0.11			0.07			(0.04	)		(0.06	)		(0.04	)
Net realized and unrealized gain			0.55				0.14			0.56			0.20			0.92			0.46			0.60
Net increase from investment operations			0.52				0.14			0.67			0.27			0.88			0.40			0.56
Distributions(c)
From net investment income			—				(0.05	)		(0.06	)		—			—			—			—
From net realized gain			(0.30	)			(0.27	)		(0.12	)		(0.46	)		(0.10	)		(0.58	)		(6.17	)
Total distributions			(0.30	)			(0.32	)		(0.18	)		(0.46	)		(0.10	)		(0.58	)		(6.17	)
Capital contributions — affiliated(d)			—				—			—			—			—			0.04			—
Net asset value, end of period		$	9.92			$	9.70		$	9.88		$	9.39		$	9.58		$	8.80		$	8.94
Total Return(e)
Based on net asset value			5.45	%(f)			1.53	%(f)		7.30	%		3.04	%		10.08	%		5.11	%(g)		2.28	%
Ratios to Average Net Assets(h)
Total expenses			1.24	%(i)			1.27	%(i)		1.34	%		1.43	%		1.55	%		1.58	%		2.54	%
Total expenses after fees waived and/or reimbursed			1.18	%(i)			1.20	%(i)		1.28	%		1.36	%		1.41	%		1.42	%		1.89	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense			1.18	%(i)			1.20	%(i)		1.28	%		1.36	%		1.41	%		1.42	%		1.65	%
Total expenses after fees waived and/or reimbursed and excluding dividend expenses, stock loan fees and interest expense			1.18	%(i)			1.19	%(i)		1.25	%		1.30	%		1.38	%		1.38	%		1.38	%
Net investment income (loss)			(0.68	)%(i)			0.06	%(i)		1.11	%		0.75	%		(0.39	)%		(0.67	)%		(0.26	)%
Supplemental Data
Net assets, end of period (000)		$	5,797,651			$	4,779,208		$	3,128,313		$	786,155		$	145,557		$	76,046		$	8,077
Portfolio turnover rate(j)			37	%			63	%		177	%		135	%		199	%		233	%		81	%

^(a)  Based on average shares outstanding.

^(b)  Amount is less than $0.005 per share.

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

^(d) Payment received from affiliates related to certain shareholder transactions.

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

^(f)  Aggregate total return.

^(g)  Includes payment received from affiliates, which impacted the Fund’s total return. Excluding the payment from affiliates, the Fund’s total return is 4.64%.

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

	Six Months Ended 11/30/20 (unaudited)			Period from 10/01/19       to 05/31/20			Year Ended September 30,
								2019		2018		2017		2016		2015
Investments in underlying funds		0.15	%		0.16	%		0.22	%	0.20	%	0.15	%	0.16	%	0.04	%

⁽ⁱ⁾ Annualized.

^(j) Excludes underlying investments in total return swaps.

See notes to financial statements.

FINANCIAL   HIGHLIGHTS 27

Financial Highlights  (continued)

(For a share outstanding throughout each period)

		BlackRock Event Driven Equity Fund (continued)
		Investor A
	Six Months Ended 11/30/20 (unaudited)				Period from 10/01/19 to 05/31/20				Year Ended September 30,
										2019			2018			2017			2016			2015
Net asset value, beginning of period		$	9.31			$	9.49		$	9.03		$	9.22		$	8.48		$	8.65		$	14.31
Net investment income (loss)(a)			(0.04	)			(0.01	)		0.08			0.03			(0.06	)		(0.07	)		(0.07	)
Net realized and unrealized gain			0.52				0.13			0.54			0.22			0.88			0.44			0.58
Net increase from investment operations			0.48				0.12			0.62			0.25			0.82			0.37			0.51
Distributions(b)
From net investment income			—				(0.03	)		(0.04	)		—			—			—			—
From net realized gain			(0.29	)			(0.27	)		(0.12	)		(0.44	)		(0.08	)		(0.58	)		(6.17	)
Total distributions			(0.29	)			(0.30	)		(0.16	)		(0.44	)		(0.08	)		(0.58	)		(6.17	)
Capital contributions — affiliated(c)			—				—			—			—			—			0.04			—
Net asset value, end of period		$	9.50			$	9.31		$	9.49		$	9.03		$	9.22		$	8.48		$	8.65
Total Return(d)
Based on net asset value			5.26	%(e)			1.40	%(e)		7.04	%		2.86	%		9.71	%		4.92	%(f)		1.91	%
Ratios to Average Net Assets(g)
Total expenses			1.49	%(h)			1.52	%(h)		1.59	%		1.69	%		1.86	%		1.92	%		2.85	%
Total expenses after fees waived and/or reimbursed			1.43	%(h)			1.45	%(h)		1.53	%		1.63	%		1.68	%		1.70	%		2.12	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense			1.43	%(h)			1.45	%(h)		1.53	%		1.63	%		1.68	%		1.70	%		1.90	%
Total expenses after fees waived and/or reimbursed and excluding dividend expenses, stock loan fees and interest expense			1.43	%(h)			1.44	%(h)		1.51	%		1.59	%		1.65	%		1.65	%		1.65	%
Net investment income (loss)			(0.92	)%(h)			(0.17	)%(h)		0.86	%		0.31	%		(0.69	)%		(0.88	)%		(0.55	)%
Supplemental Data
Net assets, end of period (000)		$	183,940			$	161,797		$	130,066		$	31,321		$	31,506		$	26,523		$	10,143
Portfolio turnover rate(i)			37	%			63	%		177	%		135	%		199	%		233	%		81	%

^(a)  Based on average shares outstanding.

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

^(c)  Payment received from affiliates related to certain shareholder transactions.

^(d)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Includes payment received from affiliates, which impacted the Fund’s total return. Excluding the payment from affiliates, the Fund’s total return is 4.43%.

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

	Six Months Ended 11/30/20 (unaudited)			Period from 10/01/19 to 05/31/20			Year Ended September 30,
								2019		2018		2017		2016		2015
Investments in underlying funds		0.15	%		0.16	%		0.22	%	0.20	%	0.15	%	0.16	%	0.04	%

^(h) Annualized.

⁽ⁱ⁾ Excludes underlying investments in total return swaps.

See notes to financial statements.

28 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

		BlackRock Event Driven Equity Fund (continued)
		Investor C
	Six Months Ended 11/30/20 (unaudited)				Period from 10/01/19 to 05/31/20				Year Ended September 30,
										2019			2018			2017			2016			2015
Net asset value, beginning of period		$	8.33			$	8.53		$	8.15		$	8.37		$	7.69		$	7.94		$	13.70
Net investment income (loss)(a)			(0.07	)			(0.05	)		0.01			(0.03	)		(0.11	)		(0.12	)		(0.16	)
Net realized and unrealized gain			0.46				0.12			0.49			0.19			0.79			0.41			0.57
Net increase from investment operations			0.39				0.07			0.50			0.16			0.68			0.29			0.41
Distributions(b)
From net investment income			—				—			(0.00	)(c)		—			—			—			—
From net realized gain			(0.26	)			(0.27	)		(0.12	)		(0.38	)		—			(0.58	)		(6.17	)
Total distributions			(0.26	)			(0.27	)		(0.12	)		(0.38	)		—			(0.58	)		(6.17	)
Capital contributions — affiliated(d)			—				—			—			—			—			0.04			—
Net asset value, end of period		$	8.46			$	8.33		$	8.53		$	8.15		$	8.37		$	7.69		$	7.94
Total Return(e)
Based on net asset value			4.86	%(f)			0.93	%(f)		6.30	%		2.06	%		8.84	%		4.32	%(g)		1.16	%
Ratios to Average Net Assets(h)
Total expenses			2.24	%(i)			2.25	%(i)		2.30	%		2.44	%		2.64	%		2.74	%		3.61	%
Total expenses after fees waived and/or reimbursed			2.17	%(i)			2.18	%(i)		2.24	%		2.37	%		2.42	%		2.43	%		2.86	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense			2.17	%(i)			2.18	%(i)		2.24	%		2.37	%		2.42	%		2.43	%		2.64	%
Total expenses after fees waived and/or reimbursed and excluding dividend expenses, stock loan fees and interest expense			2.17	%(i)			2.17	%(i)		2.21	%		2.33	%		2.39	%		2.39	%		2.39	%
Net investment income (loss)			(1.67	)%(i)			(0.91	)%(i)		0.15	%		(0.42	)%		(1.38	)%		(1.57	)%		(1.28	)%
Supplemental Data
Net assets, end of period (000)		$	70,519			$	64,196		$	44,288		$	8,316		$	6,686		$	6,112		$	6,165
Portfolio turnover rate(j)			37	%			63	%		177	%		135	%		199	%		233	%		81	%

^(a) Based on average shares outstanding.

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

^(c) Amount is greater than $(0.005) per share.

^(d) Payment received from affiliates related to certain shareholder transactions.

^(e) Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(f) Aggregate total return.

^(g) Includes payment received from affiliates, which impacted the Fund’s total return. Excluding the payment from affiliates, the Fund’s total return is 3.78%.

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

	Six Months Ended 11/30/20 (unaudited)			Period from 10/01/19 to 05/31/20			Year Ended September 30,
								2019		2018		2017		2016		2015
Investments in underlying funds		0.15	%		0.16	%		0.22	%	0.20	%	0.15	%	0.16	%	0.04	%

⁽ⁱ⁾ Annualized.

^(j) Excludes underlying investments in total return swaps.

See notes to financial statements.

FINANCIAL   HIGHLIGHTS 29

Notes to Financial Statements (unaudited)

1. ORGANIZATION

BlackRock Large Cap Series Funds, Inc. (the “Corporation”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Corporation is organized as a Maryland corporation. BlackRock Event Driven Equity Fund (the “Fund”) is a series of the Corporation, although the Fund may invest in companies with any capitalization. The Fund is classified as diversified.

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

Share Class	Initial Sales Charge		CDSC			Conversion Privilege
Institutional Shares		No		No		None
Investor A Shares		Yes		No	(a)	None
Investor C Shares		No		Yes	(b)	To Investor A Shares after approximately 8 years

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

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

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend date. Non-cash dividends, if any, are recorded on the ex-dividend date at fair value. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Fund is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities 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: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

Foreign Taxes: The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Foreign taxes withheld”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of November 30, 2020, if any, are disclosed in the Statement of Assets and Liabilities.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts and swaps) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

30 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

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

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

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

The Fund has an arrangement with its custodian whereby credits are earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. The Fund may incur charges on overdrafts, subject to certain conditions.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price the 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 Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. 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 a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

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

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

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

• Fixed-income investments for which market quotations are readily available are generally valued using the last available bid prices or current market quotations provided by independent dealers or third party pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more independent brokers or dealers as obtained from a third party pricing service. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), 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.

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

• The Fund values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets.

• Futures contracts are valued based on that day’s last reported settlement price on the exchange where the contract is traded.

• 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.

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

NOTES   TO   FINANCIAL   STATEMENTS 31

Notes to Financial Statements (unaudited) (continued)

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

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

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

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

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. 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 the Fund has the ability to access

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

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

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

As of November 30, 2020, certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

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.

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

32 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

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

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

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

Borrowed Bond Agreements: Repurchase agreements may be referred to as borrowed bond agreements when entered into in connection with short sales of bonds. In a borrowed bond agreement, a fund borrows a bond from a counterparty in exchange for cash collateral. The agreement contains a commitment that the security and the cash will be returned to the counterparty and a fund at a mutually agreed upon date. Certain agreements have no stated maturity and can be terminated by either party at any time. Earnings on cash collateral and compensation to the lender of the bond are based on agreed upon rates between a fund and the counterparty. The value of the underlying cash collateral approximates the market value and accrued interest of the borrowed bond. To the extent that a borrowed bond transaction exceeds one business day, the value of the cash collateral in the possession of the counterparty is monitored on a daily basis to ensure the adequacy of the collateral. As the market value of the borrowed bond changes, the cash collateral is periodically increased or decreased with a frequency and in amounts prescribed in the borrowed bond agreement. A fund may also experience delays in gaining access to the collateral.

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

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

Counterparty	Borrowed Bond Agreements(a)			Borrowed Bonds at Value Including Accrued Interest(b)			Exposure Due (to)/ from Counterparty     Before Collateral				Cash Collateral Pledged			Net Exposure Due (to)/ from     Counterparty(c)
Citigroup Global Markets, Inc.		$	1,410,000		$  (1,548,851	)		$	(138,851	)		$	138,851		$	—(d)

^(a)  Included in Investments at value — unaffiliated in the Statement of Assets and Liabilities.

^(b)  Includes accrued interest on borrowed bonds in the amount of $9,926 which is included in interest expense payable in the Statement of Assets and Liabilities.

^(c)  Net exposure represents the net receivable (payable) that would be due from/to the counterparty in the event of default.

^(d)  Net receivable/payable is subject to set-off provision with net receivable/payable under the ISDA Agreement.

When a fund enters into an MRA and International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) and/or Master Securities Lending Agreements (“MSLA”) with the same counterparty, the agreements may contain a set-off provision allowing a fund to offset a net amount payable with a net amount receivable upon default of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events. For example, regardless of the contractual rights included in an MRA, such laws may prohibit a fund from setting off amounts owed to a defaulting counterparty under an MRA against amounts owed to a fund by affiliates of the defaulting counterparty. However, the insolvency regimes of many jurisdictions generally permit set-off of simultaneous payables and receivables with the same legal entity under certain types of financial contracts. These rules would apply upon a default of the legal entity, regardless of the existence of a contractual set-off right in those contracts.

NOTES   TO   FINANCIAL   STATEMENTS 33

Notes to Financial Statements (unaudited) (continued)

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

Short Sale Transactions: In short sale transactions, a fund sells a security it does not hold in anticipation of a decline in the market price of that security. When a fund makes a short sale, it will borrow the security sold short (borrowed bond) and deliver the fixed-income security to the counterparty to which it sold the security short. An amount equal to the proceeds received by a fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. A fund is required to repay the counterparty interest on the security sold short, which, if applicable, is included in interest expense in the Statement of Operations. A fund is exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of an unlimited loss since there is an unlimited potential for the market price of the security sold short to increase. A gain is limited to the price at which a fund sold the security short. A realized gain or loss is recognized upon the termination of a short sale if the market price is either less than or greater than the proceeds originally received. There is no assurance that a fund will be able to close out a short position at a particular time or at an acceptable price.

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

The market value of any securities on loan, all of which were classified as common stocks in the Fund’s Schedule of Investments, and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments.

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

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

	Securities				Cash				Net
Counterparty		Loaned at Value			Collateral Received(a)					Amount
BMO Capital Markets				$   370,188			$  (370,188	)				$  —
Citigroup Global Markets, Inc.				20,341,305			(20,341,305	)				—
Credit Suisse Securities (USA) LLC				12,953,745			(12,953,745	)				—
Goldman Sachs & Co.				2,441,192			(2,441,192	)				—
Morgan Stanley & Co. LLC				12,387,095			(12,387,095	)				—
TD Prime Services LLC				170,954			(170,954	)				—
			$	48,664,479		$	(48,664,479	)			$	—

^(a)  Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Fund’s Statement of Assets and Liabilities.

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

34 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

5. DERIVATIVE FINANCIAL INSTRUMENTS

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

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

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

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

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

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

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

• 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 Fund 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 Fund 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 Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

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

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

Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to

NOTES   TO   FINANCIAL   STATEMENTS 35

Notes to Financial Statements (unaudited) (continued)

certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.

Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.

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

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, a Fund may enter into an 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 and the counterparty.

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

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

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

Average Daily Net Assets	Investment Advisory Fees
First $1 billion	1.20%
$1 billion - $3 billion	1.13
$3 billion - $5 billion	1.08
$5 billion - $10 billion	1.04
Greater than $10 billion	1.02

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

Share Class	Service Fees			Distribution Fees
Investor A		0.25	%	N/A
Investor C		0.25		0.75%

36 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

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

For the six months ended November 30, 2020, the following table shows the class specific service and distribution fees borne directly by each share class of the Fund:

	Investor A		Investor C		Total
Service and distribution fees — class specific		$  218,654		$  337,445	$  556,099

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the six months ended November 30, 2020, the Fund paid amounts $110,022 for the Fund’s institutional Shares to affiliates in return for these services.

The Manager maintains a call center that is responsible for providing certain shareholder services to the Fund. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the six months ended November 30, 2020, the Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:

	Institutional		Investor A		Investor C		Total
Reimbursed amounts		$  5,374		$  1,220		$  464	$  7,058

For the six months ended November 30, 2020, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

	Institutional		Investor A		Investor C		Total
Transfer agent fees — class specific		$  2,507,440		$  81,458		$  30,547	$  2,619,445

Other Fees: For the six months ended November 30, 2020, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares of $4,616.

For the six months ended November 30, 2020, affiliates received CDSCs as follows:

Share Class	Amounts
Investor A	$	8,337
Investor C		5,883
	$	14,220

Expense Limitations, Waivers and Reimbursements: With respect to the Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through September 30, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Corporation, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of the Fund. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended November 30, 2020, the amounts waived and/or reimbursed was $1,699,755.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through September 30, 2021. 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 the Fund. For the six months ended November 30, 2020, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

With respect to the 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 the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

Institutional	Investor A			Investor C
1.38%		1.65	%		2.39%

The Manager has agreed not to reduce or discontinue these contractual expense limitations through September 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended November 30, 2020, there were no investment advisory fees waived and/or reimbursed by the Manager pursuant to this agreement.

For the six months ended November 30, 2020, the Fund reimbursed the Manager $30,910 for certain accounting services, which is included in accounting services in the Statement of Operations.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The

NOTES   TO   FINANCIAL   STATEMENTS 37

Notes to Financial Statements (unaudited) (continued)

Fund is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company, SL Liquidity Series, LLC (“Money Market Series”), managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the Money Market Series to an annual rate of 0.04%. The investment adviser to the Money Market Series will not charge any advisory fees with respect to shares purchased by the Fund. The Money Market Series may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act.

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

Pursuant to the current securities lending agreement, the Fund retains 75% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended November 30, 2020, the Fund paid BIM $114,012 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the 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 the Fund’s investment policies and restrictions. The 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 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 November 30, 2020, the Fund did not participate in the Interfund Lending Program.

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

7. PURCHASES AND SALES

For the six months ended November 30, 2020, purchases and sales of investments, excluding short-term investments, were $585,456,705 and $315,820,683, respectively.

8. INCOME TAX INFORMATION

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

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

Management has analyzed tax laws and regulations and their application to the Fund as of November 30, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of November 30, 2020, 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:

	Amounts
Tax cost	$	6,036,835,777
Gross unrealized appreciation	$	301,139,150
Gross unrealized depreciation		(128,793,814	)
Net unrealized appreciation (depreciation)	$	172,345,336

38 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

9. BANK BORROWINGS

The Corporation, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2021 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 November 30, 2020, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

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

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

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

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. The duration of this pandemic and its effects cannot be determined with certainty.

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

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

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

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

With futures and centrally cleared swaps, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default

NOTES   TO   FINANCIAL   STATEMENTS 39

Notes to Financial Statements (unaudited) (continued)

(including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

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 the Fund’s portfolio are disclosed in its Schedule of Investments.

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

LIBOR Transition Risk: The United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”) by the end of 2021, and it is expected that LIBOR will cease to be published after that time. The Fund may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against, instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Fund is uncertain.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 11/30/20						Period from 10/01/19 to 05/31/20						Year Ended 09/30/19
Share Class	Shares			Amounts			Shares			Amounts			Shares			Amounts
Institutional
Shares sold		160,379,075		$	1,553,463,932			304,112,457		$	2,947,159,774			290,800,810		$	2,795,254,199
Shares issued in reinvestment of distributions		12,460,517			118,748,722			10,386,347			100,539,839			1,492,940			13,869,414
Shares redeemed		(80,969,316	)		(784,253,998	)		(138,586,900	)		(1,307,266,555	)		(59,365,590	)		(571,048,852	)
		91,870,276		$	887,958,656			175,911,904		$	1,740,433,058			232,928,160		$	2,238,074,761
Investor A
Shares sold and automatic conversion of shares		5,759,595		$	53,530,591			8,846,594		$	82,575,134			12,692,072		$	117,047,639
Shares issued in reinvestment of distributions		552,150			5,041,130			492,339			4,573,826			82,359			735,463
Shares redeemed		(4,334,060	)		(40,229,762	)		(5,663,652	)		(51,791,829	)		(2,530,791	)		(23,367,829	)
		1,977,685		$	18,341,959			3,675,281		$	35,357,131			10,243,640		$	94,415,273
Investor C
Shares sold		1,261,922		$	10,467,536			3,173,078		$	26,709,754			4,496,605		$	37,472,780
Shares issued in reinvestment of distributions		255,036			2,081,097			213,421			1,779,931			21,698			175,103
Shares redeemed and automatic conversion of shares		(890,724	)		(7,364,581	)		(869,500	)		(7,121,093	)		(344,513	)		(2,879,185	)
		626,234		$	5,184,052			2,516,999		$	21,368,592			4,173,790		$	34,768,698
		94,474,195		$	911,484,667			182,104,184		$	1,797,158,781			247,345,590		$	2,367,258,732

12. SUBSEQUENT EVENTS

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

40 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

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 Large Cap Series Funds, Inc. (the “Corporation”) has adopted and implemented a liquidity risk management program (the “Program”) for BlackRock Event Driven Equity Fund (the “Fund”), a series of the Corporation, which is reasonably designed to assess and manage the Fund’s liquidity risk.

The Board of Directors (the “Board”) of the Corporation, on behalf of the Fund, met on November 10-11, 2020 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Advisors, LLC or BlackRock Fund Advisors (“BlackRock”), each an investment adviser to certain Funds, as the program administrator for each Fund’s Program, as applicable. 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 operation 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, 2019 through September 30, 2020 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish a 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 impact of the coronavirus outbreak on the Funds and the overall market.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a 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 and reverse repurchase agreements), such borrowings were factored into the Program’s calculation of a Fund’s liquidity bucketing. 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 net redemption activity and used this information as a component to establish each Fund’s reasonably anticipated trading size (“RATS”). 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 the Funds, 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). 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. 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.

STATEMENT   REGARDING   LIQUIDITY    RISK    MANAGEMENT    PROGRAM 41

Additional Information  

General Information

Householding

The Fund 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 Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT is available on the SEC’s website at sec.gov. Additionally, the 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 and Procedures

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

Availability of Proxy Voting Record

Information about how the Fund voted proxies relating to securities held in the Fund’s portfolio during the most recent 12-month period ended June��30 is available upon request and without charge (1) at blackrock.com; or by calling (800) 441-7762 and (2) 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.

42 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Additional Information  (continued)

BlackRock Privacy Principles

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

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

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

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

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

Fund and Service Providers

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent and Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

Brown Brothers Harriman & Co.

Boston, MA 02109

Distributor

BlackRock Investments, LLC

New York, NY 10022

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Corporation

100 Bellevue Parkway

Wilmington, DE 19809

ADDITIONAL   INFORMATION 43

Glossary of Terms Used in this Report

Currency Abbreviation
EUR	Euro
GBP	British Pound
USD	United States Dollar
Portfolio Abbreviation
ADR	American Depositary Receipt
CVR	Contingent Value Rights
ETF	Exchange-Traded Fund
FKA	Formally Known As
LIBOR	London Interbank Offered Rate
S&P	Standard & Poor’s
SPDR	Standard & Poor’s Depository Receipt

44 2 0 2 0   BLACK ROCK   SEMI - ANNUAL   REPORT   TO   SHAREHOLDERS

Want to know more?

blackrock.com | 800-441-7762

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

EDE-11/20-SAR

   

(b) Not Applicable

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 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

(a)(3) Not Applicable

(a)(4) Not Applicable

(b) Section 906 Certifications are attached

2

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 Large Cap Series Funds, Inc.

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Large Cap Series Funds, Inc.

Date: February 3, 2021

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 Large Cap Series Funds, Inc.

Date: February 3, 2021

By:	/s/ Trent Walker
	Trent Walker
	Chief Financial Officer (principal financial officer) of
	BlackRock Large Cap Series Funds, Inc.

Date: February 3, 2021

3