BlackRock Funds II N-CSR Certified 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: 811-22061

Name of Fund:  BlackRock Funds II

BlackRock Managed Income Fund

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 12/31/2023

Date of reporting period: 12/31/2023

Item 1 – Report to Stockholders

(a)

The Report to Shareholders is attached herewith.

(b)

Not Applicable

DECEMBER

31,

2023

Not

FDIC

Insured

-

May

Lose

Value

-

No

Bank

Guarantee

2023

Annual

Report

BlackRock

Funds

II

BlackRock

Managed

Income

Fund

Dear

Shareholder,

The

combination

of

continued

economic

growth

and

cooling

inflation

provided

a

supportive

backdrop

for

investors

during

the

12-month

reporting

period

ended

December

31,

2023.

Significantly

tighter

monetary

policy

helped

to

rein

in

inflation,

and

the

Consumer

Price

Index

decelerated

substantially

in

the

first

half

of

the

year

before

stalling

between

3%

and

4%

in

the

second

half.

A

moderating

labor

market

helped

ease

inflationary

pressure,

although

wages

continued

to

grow.

Wage

and

job

growth

powered

robust

consumer

spending,

backstopping

the

economy.

On

October

7,

2023,

Hamas

launched

a

horrific

attack

on

Israel.

The

ensuing

war

will

have

a

significant

humanitarian

impact

and

could

lead

to

heightened

economic

and

market

volatility.

We

see

geopolitics

as

a

structural

market

risk

going

forward.

See

our

geopolitical

risk

dashboard

at

blackrock.com

for

more

details.

Equity

returns

were

robust

during

the

period,

as

interest

rates

stabilized

and

the

economy

proved

to

be

more

resilient

than

many

investors

expected.

The

U.S.

economy

continued

to

show

strength,

and

growth

further

accelerated

in

the

third

quarter

of

2023.

Large-capitalization

U.S.

stocks

posted

particularly

substantial

gains,

supported

by

the

performance

of

a

few

notable

technology

companies

and

small-capitalization

U.S.

stocks

also

advanced.

Meanwhile,

international

developed

market

equities

and

emerging

market

stocks

posted

solid

gains.

The

10-year

U.S.

Treasury

yield

ended

2023

where

it

began

despite

an

eventful

year

that

saw

significant

moves

in

bond

markets.

Overall,

U.S.

Treasuries

gained

as

investors

began

to

anticipate

looser

financial

conditions.

The

corporate

bond

market

benefited

from

improving

economic

sentiment,

although

high-yield

corporate

bond

prices

fared

significantly

better

than

investment-grade

bonds

as

demand

from

yield-seeking

investors

remained

strong.

The

U.S.

Federal

Reserve

(the

“Fed”),

attempting

to

manage

persistent

inflation,

raised

interest

rates

four

times

during

the

12-month

period,

but

paused

its

tightening

in

the

second

half

of

the

period.

The

Fed

also

wound

down

its

bond-buying

programs

and

incrementally

reduced

its

balance

sheet

by

not

replacing

securities

that

reach

maturity.

Supply

constraints

appear

to

have

become

an

embedded

feature

of

the

new

macroeconomic

environment,

making

it

difficult

for

developed

economies

to

increase

production

without

sparking

higher

inflation.

Geopolitical

fragmentation

and

an

aging

population

risk

further

exacerbating

these

constraints,

keeping

the

labor

market

tight

and

wage

growth

high.

Although

the

Fed

has

stopped

tightening

for

now,

we

believe

that

the

new

economic

regime

means

that

the

Fed

will

need

to

maintain

high

rates

for

an

extended

period

despite

the

market’s

hopes

for

interest

rate

cuts,

as

reflected

in

the

recent

rally.

In

this

new

regime,

we

anticipate

greater

volatility

and

dispersion

of

returns,

creating

more

opportunities

for

selective

portfolio

management.

We

believe

developed

market

equities

have

priced

in

an

optimistic

scenario

for

rate

cuts,

which

we

view

as

premature,

so

we

prefer

an

underweight

stance

in

the

near

term.

Nevertheless,

we

are

overweight

on

Japanese

stocks

as

shareholder-friendly

policies

generate

increased

investor

interest.

We

also

believe

that

stocks

with

an

AI

tilt

should

benefit

from

an

investment

cycle

that

is

set

to

support

revenues

and

margins.

In

credit,

there

are

selective

opportunities

in

the

near

term

despite

tighter

credit

and

financial

conditions.

For

fixed

income

investing

with

a

six-

to

twelve-month

horizon,

we

see

the

most

attractive

investments

in

short-term

U.S.

Treasuries,

U.S.

mortgage-backed

securities,

and

hard-currency

emerging

market

bonds.

Overall,

our

view

is

that

investors

need

to

think

globally,

position

themselves

to

be

prepared

for

a

decarbonizing

economy,

and

be

nimble

as

market

conditions

change.

We

encourage

you

to

talk

with

your

financial

advisor

and

visit

blackrock.com

for

further

insight

about

investing

in

today’s

markets.

Sincerely,

Rob

Kapito

President,

BlackRock

Advisors,

LLC

The

Markets

in

Review

Rob

Kapito

President,

BlackRock

Advisors,

LLC

Past

performance

is

not

an

indication

of

future

results.

Index

performance

is

shown

for

illustrative

purposes

only.

You

cannot

invest

directly

in

an

index.

Total

Returns

as

of

December

31,

2023

6-Month

12-Month

U.S.

large

cap

equities

(S&P

500

®

Index)

8.04%

26.29%

U.S.

small

cap

equities

(Russell

2000

®

Index)

8.18

16.93

International

equities

(MSCI

Europe,

Australasia,

Far

East

Index)

5.88

18.24

Emerging

market

equities

(MSCI

Emerging

Markets

Index)

4.71

9.83

3-month

Treasury

bills

(ICE

BofA

3-Month

U.S.

Treasury

Bill

Index)

2.70

5.02

U.S.

Treasury

securities

(ICE

BofA

10-Year

U.S.

Treasury

Index)

1.11

2.83

U.S.

investment

grade

bonds

(Bloomberg

U.S.

Aggregate

Bond

Index)

3.37

5.53

Tax-exempt

municipal

bonds

(Bloomberg

Municipal

Bond

Index)

3.63

6.40

U.S.

high

yield

bonds

(Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index)

7.65

13.44

This

Page

is

not

Part

of

Your

Fund

Report

2

Table

of

Contents

Page

3

The

Markets

in

Review

...................................................................................................

2

Annual

Report:

Fund

Summary

........................................................................................................

4

About

Fund

Performance

..................................................................................................

7

Disclosure

of

Expenses

...................................................................................................

7

Derivative

Financial

Instruments

.............................................................................................

8

Financial

Statements:

Schedule

of

Investments

................................................................................................

9

Statement

of

Assets

and

Liabilities

..........................................................................................

53

Statement

of

Operations

................................................................................................

55

Statements

of

Changes

in

Net

Assets

........................................................................................

56

Financial

Highlights

.....................................................................................................

57

Notes

to

Financial

Statements

...............................................................................................

61

Report

of

Independent

Registered

Public

Accounting

Firm

..............................................................................

74

Important

Tax

Information

.................................................................................................

75

Statement

Regarding

Liquidity

Risk

Management

Program

.............................................................................

76

Trustee

and

Officer

Information

..............................................................................................

77

Additional

Information

....................................................................................................

81

Glossary

of

Terms

Used

in

this

Report

..........................................................................................

83

Fund

Summary

as

of

December

31,

2023

2023

BlackRock

Annual

Report

to

Shareholders

4

BlackRock

Managed

Income

Fund

Investment

Objective

BlackRock

Managed

Income

Fund’s

(the

“Fund”)

investment

objective

is

to

seek

to

maximize

current

income

with

consideration

for

risk-managed

total

return.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

December

31,

2023,

the

Fund

underperformed

its

Customized

Reference

Benchmark,

a

blend

of

30%

S&P

500

®

Index/70%

Bloomberg

U.S.

Aggregate

Bond

Index.

For

the

same

period,

the

Fund

outperformed

the

Bloomberg

U.S.

Aggregate

Bond

Index.

Performance

is

reviewed

on

an

absolute

basis

due

to

the

nature

of

the

Fund’s

strategy.

The

Fund

is

managed

within

a

risk-controlled

framework,

and

it

strives

to

maintain

a

consistent

yield

with

a

risk

profile

below

that

of

the

benchmark.

What

factors

influenced

performance?

Most

of

the

Fund’s

allocations

delivered

positive

absolute

returns

given

the

“risk-on”

environment

in

the

financial

markets

during

2023.

The

Fund’s

allocation

to

global

equities

was

the

largest

contributor

given

the

favorable

backdrop

for

stocks

during

much

of

the

period.

Positions

in

lower-quality

fixed-income

categories,

including

high

yield

bonds

and

floating

rate

bank

loans,

also

aided

returns

as

investors

sought

the

higher

yields

and

attractive

total

return

potential

in

below

investment-grade

bonds.

High-quality

collateralized

loan

obligations

(“CLOs”)

were

also

key

contributors

in

the

rising-rate

environment.

Holdings

in

areas

such

as

emerging

market

bonds,

infrastructure

stocks,

and

real

estate

investment

trusts

(“REITs”),

while

positive,

were

more

modest

contributors

to

the

Fund’s

absolute

return

given

their

smaller

weightings

in

the

portfolio.

The

Fund

held

derivatives

during

the

reporting

period.

It

used

U.S.

Treasury

futures

to

manage

the

Fund’s

interest-rate

positions.

This

aspect

of

its

strategy

initially

detracted

given

the

extent

to

which

interest

rates

rose

for

most

of

the

period

but

it

ultimately

proved

to

be

a

contributor

for

the

full

12-months

given

the

bond

market

rally

in

November

and

December

2023.

The

Fund

also

held

covered

calls,

which

aided

returns.

(Covered

calls

involve

the

use

of

derivatives

and

are

intended

as

an

alternative

source

of

income.)

Currency

management

strategies

also

added

value,

as

did

the

use

of

derivatives

to

manage

overall

risk

levels

in

the

portfolio.

The

Fund’s

cash

position

was

modestly

elevated

at

year

end,

as

the

investment

adviser

was

judicious

about

managing

risk

after

an

extended

period

of

strong

returns

across

the

financial

markets.

The

cash

position

did

not

have

a

meaningful

impact

on

performance.

Describe

recent

portfolio

activity.

The

investment

adviser

increased

the

Fund’s

allocation

to

stocks

over

the

period

in

response

to

the

favorable

market

backdrop.

However,

the

investment

adviser

balanced

some

of

the

risk

by

adding

to

high-quality

mortgage-backed

securities

that

offered

attractive

yields

and

favorable

total

return

potential

due

to

elevated

interest

rates.

The

investment

adviser

made

these

changes

by

reducing

the

Fund’s

allocations

to

areas

where

it

saw

less

favorable

risk/return

profiles,

including

preferred

stocks,

high

yield

bonds,

bank

loans,

and

investment-grade

corporate

bonds.

The

investment

adviser

adjusted

the

Fund’s

duration

throughout

the

period

in

an

effort

to

capitalize

on

bond

market

volatility.

(Duration

is

a

measure

of

interest-rate

sensitivity.)

The

Fund

ultimately

ended

the

period

with

modestly

higher

duration

than

the

fixed-income

benchmark,

as

yields

had

risen

to

a

level

where

duration

had

become

a

source

of

attractive

diversification

with

the

potential

to

mitigate

risk.

Describe

portfolio

positioning

at

period

end.

The

Fund

was

diversified

across

several

income-producing

asset

classes—including

investment-grade

debt,

bank

loans,

high

yield

bonds,

global

equities,

covered

calls,

preferred

stocks,

mortgage-backed

securities

and

cash—and

it

continued

to

use

risk-management

strategies.

At

the

close

of

the

period,

the

Fund’s

duration

stood

at

approximately

3.9

years.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

December

31,

2023

(continued)

5

Fund

Summary

BlackRock

Managed

Income

Fund

GROWTH

OF

$10,000

INVESTMENT

Performance

N/A

—

Not

applicable

as

share

class

and

Index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

(a)

Assuming

maximum

sales

charges,

if

any,

transaction

costs

and

other

operating

expenses,

including

investment

advisory

fees

and

administration

fees,

if

any.

Institutional

shares

do

not

have

a

sales

charge.

(b)

The

Fund

may

invest

up

to

100%

of

its

assets

in

fixed-income

securities

and

up

to

30%

of

its

assets

in

equity

securities.

The

Fund’s

returns

between

July

29,

2013

and

October

1,

2016

are

the

returns

of

the

Fund

when

it

followed

a

different

investment

objective

and

different

investment

strategies

under

the

name

“BlackRock

Investment

Grade

Bond

Portfolio”.

(c)

A

customized

performance

benchmark

comprised

of

the

returns

of

the

Bloomberg

U.S.

Aggregate

Bond

Index

(70%)

and

the

S&P

500

®

Index

(30%).

(d)

A

broad-based

flagship

benchmark

that

measures

the

investment

grade,

U.S.

dollar-denominated,

fixed-rate

taxable

bond

market.

Average

Annual

Total

Returns

(a)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

..........................

5.42‌%

5.16‌%

10.31‌%

N/A‌

4.18‌%

N/A‌

4.07‌%

N/A‌

Investor

A

...........................

4.96‌

4.76‌

10.03‌

5.63‌%

3.89‌

3.05‌%

3.78‌

3.35‌%

Investor

C

...........................

4.43‌

4.20‌

9.18‌

8.18‌

3.13‌

3.13‌

3.01‌

3.01‌

Class

K

............................

5.47‌

5.25‌

10.35‌

N/A‌

4.23‌

N/A‌

4.13‌

N/A‌

Bloomberg

U.S.

Aggregate

Bond

Index

.....

—‌

—‌

5.53‌

N/A‌

1.10‌

N/A‌

1.81‌

N/A‌

Customized

Reference

Benchmark

........

—‌

—‌

11.48‌

N/A‌

5.58‌

N/A‌

5.00‌

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees,

and

how

performance

was

calculated

for

certain

share

classes.

The

Fund’s

returns

between

July

29,

2013

and

October

1,

2016

are

the

returns

of

the

Fund

when

it

followed

a

different

investment

objective

and

different

investment

strategies

under

the

name

“BlackRock

Investment

Grade

Bond

Portfolio”.

Fund

Summary

as

of

December

31,

2023

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

6

BlackRock

Managed

Income

Fund

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(07/01/23)

Ending

Account

Value

(12/31/23)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(07/01/23)

Ending

Account

Value

(12/31/23)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

...............................

$

1,000.00‌

$

1,054.10‌

$

2.02‌

$

1,000.00‌

$

1,023.24‌

$

1.99‌

0.39‌%

Investor

A

................................

1,000.00‌

1,052.80‌

3.31‌

1,000.00‌

1,021.98‌

3.26‌

0.64‌

Investor

C

................................

1,000.00‌

1,048.70‌

7.18‌

1,000.00‌

1,018.20‌

7.07‌

1.39‌

Class

K

..................................

1,000.00‌

1,055.40‌

1.76‌

1,000.00‌

1,023.49‌

1.73‌

0.34‌

(a)

For

each

class

of

the

Fund,

expenses

are

equal

to

the

annualized

expense

ratio

for

the

class,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

184/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

Corporate

Bonds

...................................

32.0‌

%

Investment

Companies

...............................

24.6‌

Asset-Backed

Securities

..............................

17.2‌

Common

Stocks

...................................

12.4‌

Floating

Rate

Loan

Interests

...........................

5.9‌

Equity-Linked

Notes

.................................

5.2‌

Non-Agency

Mortgage-Backed

Securities

..................

1.6‌

Preferred

Securities

.................................

0.9‌

Foreign

Agency

Obligations

............................

0.2‌

Warrants

........................................

0.0‌

(b)

Other

Interests

....................................

—‌

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(c)

Percent

of

Total

Investments

(a)

AAA/Aaa

(d)

......................................

17.1‌

%

AA/Aa

.........................................

7.2‌

A

.............................................

29.2‌

BBB/Baa

.......................................

20.2‌

BB/Ba

.........................................

4.9‌

B

............................................

6.2‌

CCC/Caa

.......................................

0.8‌

CC/Ca

.........................................

0.1‌

C

............................................

0.0‌

(b)

NR

...........................................

14.3‌

(a)

Excludes

short-term

securities.

(b)

Represents

less

than

0.1%

of

the

Fund's

total

investments.

(c)

For

financial

reporting

purposes,

credit

quality

ratings

shown

above

reflect

the

highest

rating

assigned

by

either

S&P

Global

Ratings

or

Moody’s

Investors

Service

if

ratings

differ.

These

rating

agencies

are

independent,

nationally

recognized

statistical

rating

organizations

and

are

widely

used.

Investment

grade

ratings

are

credit

ratings

of

BBB/Baa

or

higher.

Below

investment

grade

ratings

are

credit

ratings

of

BB/Ba

or

lower.

Investments

designated

NR

are

not

rated

by

either

rating

agency.

Unrated

investments

do

not

necessarily

indicate

low

credit

quality.

Credit

quality

ratings

are

subject

to

change.

(d)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

About

Fund

Performance

7

About

Fund

Performance

/

Disclosure

of

Expenses

Institutional and

Class

K

Shares

 are

not

subject

to

any

sales

charge.

These

shares

bear

no

ongoing

distribution

or

service

fees

and

are

available

only

to

certain

eligible

investors.

Investor

A

Shares

are

subject

to

a

maximum

initial

sales

charge

(front-end

load)

of 

4.00

%

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.

Investor

C

Shares

performance

shown

prior

to

the

Investor

C

Shares

inception

date

of

October

3,

2016

is

that

of

Class

K

Shares

(which

have

no

distribution

or

service

fees)

and

was

restated

to

reflect

Investor

C

Shares

fees.

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(s) assume

reinvestment

of

all

distributions,

if

any,

at

net

asset

value

(“NAV”)

on

the

ex-dividend

date

or

payable

date,

as

applicable.

Investment

return

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Distributions

paid

to

each

class

of

shares

will

vary

because

of

the

different

levels

of

service,

distribution

and

transfer

agency

fees

applicable

to

each

class,

which

are

deducted

from

the

income

available

to

be

paid

to

shareholders. 

BlackRock

Advisors,

LLC

(the

“Manager”),

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(s)

and/or

reimbursement(s),

the

Fund’s

performance

would

have

been

lower.

With

respect

to

the

Fund’s

voluntary

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

waive

and/or

reimburse

or

to

continue

waiving

and/or

reimbursing

its

fees

and

such

voluntary

waiver(s)

may

be

reduced

or

discontinued

at

any

time.

With

respect

to

the

Fund’s

contractual

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

continue

waiving

and/or

reimbursing

its

fees

after

the

applicable

termination

date

of

such

agreement.

See

the

Notes

to

Financial

Statements

for

additional

information

on

waivers

and/or

reimbursements. 

The

standardized

30-day

yield

includes

the

effects

of

any

waivers

and/or

reimbursements.

The

unsubsidized

30-day

yield

excludes

the

effects

of

any

waivers

and/or

reimbursements. 

Disclosure

of

Expenses

Shareholders

of

the

Fund

may

incur

the

following

charges:

(a)

transactional

expenses,

such

as

sales

charges;

and

(b)

operating

expenses,

including

investment

advisory

fees, administration

fees,

service

and

distribution

fees,

including

12b-1

fees,

acquired

fund

fees

and

expenses, and

other

fund

expenses.

The

expense

example

shown

(which

is

based

on

a

hypothetical

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

through

the

end

of

the

period)

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.

Annualized

expense

ratios

reflect

contractual

and

voluntary

fee

waivers,

if

any.

In

order

to

estimate

the

expenses

a

shareholder

paid

during

the

period

covered

by

this

report,

shareholders

can

divide

their

account

value

by

$1,000

and

then

multiply

the

result

by

the

number

corresponding

to

their 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

2023

BlackRock

Annual

Report

to

Shareholders

8

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. Pursuant

to Rule

18f-4

under

the

1940

Act,

among

other

things,

the

Fund

must

either

use

derivative

financial

instruments

with

embedded

leverage

in

a

limited

manner

or

comply

with

an

outer

limit

on

fund

leverage

risk

based

on

value-at-risk.

The

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.

Schedule

of

Investments

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

9

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

AGL

CLO

17

Ltd.,

Series

2022-17A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.10%

Floor

+

2.10%),

7.51%,

01/21/35

(a)(b)

.........

USD

750

$

741,222

AGL

CLO

5

Ltd.,

Series

2020-5A,

Class

A1R,

(3-mo.

CME

Term

SOFR

at

1.16%

Floor

+

1.42%),

6.84%,

07/20/34

(a)(b)

.........

2,400

2,394,044

AIMCO

CLO

(a)(b)

Series

2015-AA,

Class

CR2,

(3-mo.

CME

Term

SOFR

at

2.00%

Floor

+

2.26%),

7.66%,

10/17/34

...............

1,000

995,501

Series

2017-AA,

Class

AR,

(3-mo.

CME

Term

SOFR

at

1.05%

Floor

+

1.31%),

6.73%,

04/20/34

...............

500

498,027

AIMCO

CLO

15

Ltd.,

Series

2021-15A,

Class

C,

(3-mo.

CME

Term

SOFR

at

1.95%

Floor

+

2.21%),

7.61%,

10/17/34

(a)(b)

........

1,000

993,885

AMSR

Trust

(b)

Series

2020-SFR1,

Class

E,

3.22%,

04/17/37

....................

1,000

952,195

Series

2020-SFR1,

Class

F,

3.57%,

04/17/37

....................

1,000

951,663

Anchorage

Capital

CLO

18

Ltd.,

Series

2021-

18A,

Class

A1,

(3-mo.

CME

Term

SOFR

+

1.41%),

6.81%,

04/15/34

(a)(b)

.........

750

748,130

Anchorage

Capital

CLO

20

Ltd.,

Series

2021-

20A,

Class

A1,

(3-mo.

CME

Term

SOFR

at

1.20%

Floor

+

1.46%),

6.88%,

01/20/35

(a)(b)

1,000

999,584

Anchorage

Capital

CLO

9

Ltd.,

Series

2016-9A,

Class

BR2,

(3-mo.

CME

Term

SOFR

at

1.75%

Floor

+

2.01%),

7.41%,

07/15/32

(a)(b)

750

747,021

Anchorage

Capital

CLO

Ltd.,

Series

2018-10A,

Class

A1A,

(3-mo.

CME

Term

SOFR

at

1.20%

Floor

+

1.46%),

6.86%,

10/15/31

(a)(b)

500

500,343

Apidos

CLO

XXXIV,

Series

2020-34A,

Class

A1R,

(3-mo.

CME

Term

SOFR

at

1.15%

Floor

+

1.41%),

6.83%,

01/20/35

(a)(b)

....

1,000

1,000,873

Ares

LXI

CLO

Ltd.,

Series

2021-61A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.15%

Floor

+

1.41%),

6.83%,

10/20/34

(a)(b)

.........

1,500

1,498,028

Ares

XXXIR

CLO

Ltd.,

Series

2014-31RA,

Class

A2,

(3-mo.

CME

Term

SOFR

at

1.30%

Floor

+

1.56%),

6.94%,

05/24/30

(a)(b)

....

500

496,463

Ares

XXXVII

CLO

Ltd.,

Series

2015-4A,

Class

A1R,

(3-mo.

CME

Term

SOFR

+

1.43%),

6.83%,

10/15/30

(a)(b)

...............

222

222,340

Ares

XXXVR

CLO

Ltd.,

Series

2015-35RA,

Class

A2,

(3-mo.

CME

Term

SOFR

at

1.40%

Floor

+

1.66%),

7.06%,

07/15/30

(a)(b)

....

1,000

985,823

Bain

Capital

Credit

CLO

Ltd.

(a)(b)

Series

2019-2A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

2.10%

Floor

+

2.36%),

7.76%,

10/17/32

...............

1,000

990,019

Series

2021-3A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.42%

Floor

+

1.42%),

6.82%,

07/24/34

....................

1,500

1,499,113

Bardot

CLO

Ltd.,

Series

2019-2A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

1.90%

Floor

+

2.16%),

7.57%,

10/22/32

(a)(b)

.........

1,000

991,427

Battalion

CLO

XX

Ltd.,

Series

2021-20A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.18%

Floor

+

1.44%),

6.84%,

07/15/34

(a)(b)

.........

500

497,307

Battalion

CLO

XXII

Ltd.,

Series

2021-22A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.18%

Floor

+

1.44%),

6.86%,

01/20/35

(a)(b)

....

1,000

991,244

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Bayview

Financial

Revolving

Asset

Trust,

Series

2005-A,

Class

A1,

(1-mo.

CME

Term

SOFR

at

1.00%

Floor

+

1.11%),

6.47%,

02/28/40

(a)(b)

....................

USD

533

$

473,324

Benefit

Street

Partners

CLO

VIII

Ltd.,

Series

2015-8A,

Class

A1AR,

(3-mo.

CME

Term

SOFR

at

1.10%

Floor

+

1.36%),

6.78%,

01/20/31

(a)(b)

....................

422

422,155

Benefit

Street

Partners

CLO

XIX

Ltd.,

Series

2019-19A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.35%

Floor

+

1.61%),

7.01%,

01/15/33

(a)

(b)

...........................

1,000

999,852

Benefit

Street

Partners

CLO

XXV

Ltd.,

Series

2021-25A,

Class

B,

(3-mo.

CME

Term

SOFR

at

1.70%

Floor

+

1.96%),

7.36%,

01/15/35

(a)

(b)

...........................

1,000

997,419

Boyce

Park

CLO

Ltd.,

Series

2022-1A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.10%

Floor

+

2.10%),

7.51%,

04/21/35

(a)(b)

.........

1,000

985,709

Buckhorn

Park

CLO

Ltd.

(a)(b)

Series

2019-1A,

Class

B1R,

(3-mo.

CME

Term

SOFR

at

1.65%

Floor

+

1.91%),

7.31%,

07/18/34

...............

1,000

994,524

Series

2019-1A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

2.00%

Floor

+

2.26%),

7.66%,

07/18/34

...............

500

497,138

Canyon

CLO

Ltd.

(a)(b)

Series

2018-1A,

Class

C,

(3-mo.

CME

Term

SOFR

at

1.90%

Floor

+

2.16%),

7.56%,

07/15/31

....................

1,000

989,344

Series

2020-2A,

Class

AR,

(3-mo.

CME

Term

SOFR

at

1.19%

Floor

+

1.45%),

6.85%,

10/15/34

...............

1,000

999,983

Series

2021-4A,

Class

B,

(3-mo.

CME

Term

SOFR

at

1.70%

Floor

+

1.96%),

7.36%,

10/15/34

....................

450

446,638

Carlyle

US

CLO

Ltd.,

Series

2017-1A,

Class

A2R,

(3-mo.

CME

Term

SOFR

at

1.60%

Floor

+

1.86%),

7.28%,

04/20/31

(a)(b)

....

675

673,663

CBAM

Ltd.,

Series

2020-13A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.43%

Floor

+

1.69%),

7.11%,

01/20/34

(a)(b)

...............

1,000

997,355

CIFC

Funding

2022-IV

Ltd.,

Series

2022-4A,

Class

B,

(3-mo.

CME

Term

SOFR

at

2.00%

Floor

+

2.00%),

7.39%,

07/16/35

(a)(b)

....

1,000

1,000,414

CIFC

Funding

Ltd.

(a)(b)

Series

2013-4A,

Class

A2RR,

(3-mo.

CME

Term

SOFR

at

1.30%

Floor

+

1.56%),

6.95%,

04/27/31

...............

650

648,698

Series

2018-4A,

Class

B,

(3-mo.

CME

Term

SOFR

at

2.10%

Floor

+

2.36%),

7.76%,

10/17/31

....................

500

501,702

Series

2019-4A,

Class

A2R,

(3-mo.

CME

Term

SOFR

at

1.91%

Floor

+

1.91%),

7.31%,

10/15/34

...............

1,000

996,719

Series

2019-5A,

Class

A2RS,

(3-mo.

CME

Term

SOFR

at

1.75%

Floor

+

2.01%),

7.41%,

01/15/35

...............

1,500

1,496,255

Series

2021-1A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.06%

Floor

+

2.06%),

7.44%,

04/25/33

....................

1,000

988,506

Clover

CLO

LLC

(a)(b)

Series

2021-1A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.36%

Floor

+

1.36%),

6.77%,

04/22/34

....................

2,215

2,216,680

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

10

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Series

2021-2A,

Class

B,

(3-mo.

CME

Term

SOFR

at

1.75%

Floor

+

2.01%),

7.43%,

07/20/34

....................

USD

1,000

$

1,001,499

Series

2021-2A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.00%

Floor

+

2.26%),

7.68%,

07/20/34

....................

1,000

995,955

Dryden

49

Senior

Loan

Fund,

Series

2017-49A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

2.05%

Floor

+

2.31%),

7.71%,

07/18/30

(a)(b)

500

496,182

Dryden

83

CLO

Ltd.,

Series

2020-83A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.22%

Floor

+

1.48%),

6.88%,

01/18/32

(a)(b)

.........

1,000

1,000,325

Dryden

Senior

Loan

Fund,

Series

2017-47A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

2.05%

Floor

+

2.31%),

7.71%,

04/15/28

(a)(b)

500

499,760

Dryden

XXVI

Senior

Loan

Fund,

Series

2013-

26A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

1.85%

Floor

+

2.11%),

7.51%,

04/15/29

(a)(b)

500

497,205

Eaton

Vance

CLO

Ltd.

(a)(b)

Series

2013-1A,

Class

B3R,

(3-mo.

CME

Term

SOFR

at

2.15%

Floor

+

2.41%),

7.81%,

01/15/34

...............

1,000

995,561

Series

2018-1A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.20%

Floor

+

2.46%),

7.86%,

10/15/30

....................

500

498,737

Elmwood

CLO

II

Ltd.,

Series

2019-2A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

2.26%

Floor

+

2.26%),

7.68%,

04/20/34

(a)(b)

........

700

696,241

Elmwood

CLO

IV

Ltd.,

Series

2020-1A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.24%

Floor

+

1.50%),

6.90%,

04/15/33

(a)(b)

.........

1,500

1,501,145

First

Franklin

Mortgage

Loan

Trust,

Series

2005-FF10,

Class

A6M,

(1-mo.

CME

Term

SOFR

at

0.70%

Floor

+

0.81%),

6.17%,

11/25/35

(a)

.....................

593

548,295

Flatiron

CLO

17

Ltd.,

Series

2017-1A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

1.90%

Floor

+

2.16%),

7.54%,

05/15/30

(a)(b)

........

400

399,799

Galaxy

XXII

CLO

Ltd.

(a)(b)

Series

2016-22A,

Class

ARR,

(3-mo.

CME

Term

SOFR

at

1.20%

Floor

+

1.46%),

6.86%,

04/16/34

...............

750

750,232

Series

2016-22A,

Class

BRR,

(3-mo.

CME

Term

SOFR

at

1.70%

Floor

+

1.96%),

7.36%,

04/16/34

...............

500

496,266

Generate

CLO

9

Ltd.

(a)(b)

Series

9A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.20%

Floor

+

1.46%),

6.88%,

10/20/34

....................

1,000

995,850

Series

9A,

Class

B,

(3-mo.

LIBOR

USD

at

1.70%

Floor

+

1.70%),

7.43%,

10/20/34

1,500

1,489,237

Series

9A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.25%

Floor

+

2.51%),

7.93%,

10/20/34

....................

1,000

998,349

Gilbert

Park

CLO

Ltd.,

Series

2017-1A,

Class

A,

(3-mo.

CME

Term

SOFR

+

1.45%),

6.85%,

10/15/30

(a)(b)

...............

637

637,897

GoldenTree

Loan

Management

US

CLO

1

Ltd.,

Series

2017-1A,

Class

CR2,

(3-mo.

CME

Term

SOFR

at

1.80%

Floor

+

2.06%),

7.48%,

04/20/34

(a)(b)

...............

2,500

2,464,898

GoldenTree

Loan

Management

US

CLO

10

Ltd.,

Series

2021-10A,

Class

B,

(3-mo.

CME

Term

SOFR

at

1.60%

Floor

+

1.86%),

7.28%,

07/20/34

(a)(b)

...............

2,000

1,989,643

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Golub

Capital

Partners

CLO

37B

Ltd.,

Series

2018-37A,

Class

B1,

(3-mo.

CME

Term

SOFR

at

1.80%

Floor

+

2.06%),

7.48%,

07/20/30

(a)(b)

....................

USD

2,000

$

1,998,629

Golub

Capital

Partners

CLO

53B

Ltd.,

Series

2021-53A,

Class

B,

(3-mo.

CME

Term

SOFR

at

1.80%

Floor

+

2.06%),

7.48%,

07/20/34

(a)

(b)

...........................

2,000

1,991,441

Golub

Capital

Partners

CLO

58B

Ltd.,

Series

2021-58A,

Class

A1,

(3-mo.

CME

Term

SOFR

at

1.18%

Floor

+

1.44%),

6.82%,

01/25/35

(a)(b)

....................

1,000

997,379

Greywolf

CLO

II

Ltd.,

Series

2013-1A,

Class

A2AR,

(3-mo.

CME

Term

SOFR

at

1.60%

Floor

+

1.86%),

7.25%,

04/15/34

(a)(b)

....

300

293,510

Greywolf

CLO

VII

Ltd.,

Series

2018-2A,

Class

A1,

(3-mo.

CME

Term

SOFR

at

1.44%

Floor

+

1.44%),

6.86%,

10/20/31

(a)(b)

........

500

499,976

HalseyPoint

CLO

3

Ltd.,

Series

2020-3A,

Class

A1A,

(3-mo.

CME

Term

SOFR

at

1.45%

Floor

+

1.71%),

7.10%,

11/30/32

(a)(b)

....

1,500

1,500,001

HalseyPoint

CLO

4

Ltd.,

Series

2021-4A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.22%

Floor

+

1.48%),

6.90%,

04/20/34

(a)(b)

.........

500

499,364

Highbridge

Loan

Management

Ltd.,

Series

12A-18,

Class

A2,

(3-mo.

CME

Term

SOFR

+

1.76%),

7.16%,

07/18/31

(a)(b)

........

500

499,707

Invesco

CLO

Ltd.,

Series

2021-2A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.12%

Floor

+

1.38%),

6.78%,

07/15/34

(a)(b)

.........

1,000

993,812

Madison

Park

Funding

XX

Ltd.,

Series

2016-

20A,

Class

CR,

(3-mo.

CME

Term

SOFR

+

2.16%),

7.55%,

07/27/30

(a)(b)

.........

1,000

990,034

Madison

Park

Funding

XXXIII

Ltd.

(a)(b)

Series

2019-33A,

Class

BR,

(3-mo.

CME

Term

SOFR

at

1.80%

Floor

+

1.80%),

7.19%,

10/15/32

...............

1,000

991,341

Series

2019-33A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

2.20%

Floor

+

2.20%),

7.59%,

10/15/32

...............

1,000

992,982

Milos

CLO

Ltd.,

Series

2017-1A,

Class

BR,

(3-mo.

CME

Term

SOFR

at

1.55%

Floor

+

1.81%),

7.23%,

10/20/30

(a)(b)

.........

1,000

997,821

Neuberger

Berman

CLO

XVII

Ltd.,

Series

2014-

17A,

Class

AR2,

(3-mo.

CME

Term

SOFR

at

1.03%

Floor

+

1.29%),

6.70%,

04/22/29

(a)(b)

1,302

1,301,354

Neuberger

Berman

Loan

Advisers

CLO

26

Ltd.,

Series

2017-26A,

Class

C,

(3-mo.

CME

Term

SOFR

at

1.75%

Floor

+

2.01%),

7.41%,

10/18/30

(a)(b)

...............

1,000

988,840

OCP

CLO

Ltd.

(a)(b)

Series

2020-19A,

Class

AR,

(3-mo.

CME

Term

SOFR

at

1.15%

Floor

+

1.41%),

6.83%,

10/20/34

...............

2,500

2,495,610

Series

2021-22A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.05%

Floor

+

2.31%),

7.73%,

12/02/34

...............

500

493,817

Octagon

Investment

Partners

26

Ltd.,

Series

2016-1A,

Class

BR,

(3-mo.

CME

Term

SOFR

at

0.26%

Floor

+

1.86%),

7.26%,

07/15/30

(a)(b)

....................

500

498,015

Octagon

Investment

Partners

41

Ltd.

(a)(b)

Series

2019-2A,

Class

B1R,

(3-mo.

CME

Term

SOFR

at

1.70%

Floor

+

1.96%),

7.36%,

10/15/33

...............

1,500

1,490,067

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

11

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Series

2019-2A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

2.15%

Floor

+

2.41%),

7.81%,

10/15/33

...............

USD

1,000

$

999,368

OHA

Credit

Funding

6

Ltd.,

Series

2020-6A,

Class

AR,

(3-mo.

CME

Term

SOFR

at

1.14%

Floor

+

1.40%),

6.82%,

07/20/34

(a)(b)

....

1,500

1,500,595

OHA

Credit

Partners

XIII

Ltd.,

Series

2016-13A,

Class

BR,

(3-mo.

CME

Term

SOFR

at

1.70%

Floor

+

1.96%),

7.37%,

10/25/34

(a)(b)

1,500

1,502,261

OHA

Credit

Partners

XVI,

Series

2021-16A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.15%

Floor

+

1.41%),

6.81%,

10/18/34

(a)(b)

....

1,500

1,499,580

OHA

Loan

Funding

Ltd.,

Series

2013-1A,

Class

BR2,

(3-mo.

CME

Term

SOFR

at

1.60%

Floor

+

1.86%),

7.27%,

07/23/31

(a)(b)

....

1,000

1,001,404

Palmer

Square

CLO

Ltd.

(a)(b)

Series

2014-1A,

Class

A2R2,

(3-mo.

CME

Term

SOFR

at

1.45%

Floor

+

1.71%),

7.11%,

01/17/31

...............

1,500

1,491,968

Series

2019-1A,

Class

A1R,

(3-mo.

CME

Term

SOFR

at

1.41%

Floor

+

1.41%),

6.79%,

11/14/34

...............

1,000

998,169

Series

2019-1A,

Class

A2R,

(3-mo.

CME

Term

SOFR

at

1.96%

Floor

+

1.96%),

7.34%,

11/14/34

...............

1,000

995,904

Series

2021-2A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.06%

Floor

+

2.06%),

7.46%,

07/15/34

....................

1,000

986,990

Series

2021-4A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.43%

Floor

+

1.43%),

6.83%,

10/15/34

....................

2,000

1,998,626

Series

2022-1A,

Class

B,

(3-mo.

CME

Term

SOFR

at

1.80%

Floor

+

1.80%),

7.22%,

04/20/35

....................

500

496,860

Series

2022-1A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.05%

Floor

+

2.05%),

7.47%,

04/20/35

....................

500

489,531

Park

Avenue

Institutional

Advisers

CLO

Ltd.,

Series

2021-2A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.25%

Floor

+

2.51%),

7.91%,

07/15/34

(a)(b)

....................

1,000

995,806

Pikes

Peak

CLO

6,

Series

2020-6A,

Class

BR2,

(3-mo.

CME

Term

SOFR

at

1.70%

Floor

+

1.96%),

7.33%,

05/18/34

(a)(b)

.........

500

499,597

Pikes

Peak

CLO

8,

Series

2021-8A,

Class

B,

(3-mo.

CME

Term

SOFR

at

1.75%

Floor

+

2.01%),

7.43%,

07/20/34

(a)(b)

.........

500

499,306

PPM

CLO

4

Ltd.,

Series

2020-4A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

2.10%

Floor

+

2.36%),

7.76%,

10/18/34

(a)(b)

.........

750

735,040

PPM

CLO

5

Ltd.,

Series

2021-5A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.20%

Floor

+

1.46%),

6.86%,

10/18/34

(a)(b)

.........

1,500

1,493,488

Progress

Residential

Trust

(b)

Series

2020-SFR1,

Class

F,

3.43%,

04/17/37

....................

1,000

952,393

Series

2020-SFR2,

Class

A,

2.08%,

06/17/37

....................

998

950,204

Series

2020-SFR2,

Class

B,

2.58%,

06/17/37

....................

1,000

952,896

Rad

CLO

3

Ltd.,

Series

2019-3A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.48%

Floor

+

1.74%),

7.14%,

04/15/32

(a)(b)

.........

1,000

1,003,000

Rad

CLO

12

Ltd.,

Series

2021-12A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.05%

Floor

+

2.31%),

7.70%,

10/30/34

(a)(b)

.........

1,000

993,480

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Regatta

VIII

Funding

Ltd.,

Series

2017-1A,

Class

A,

(3-mo.

CME

Term

SOFR

+

1.51%),

6.91%,

10/17/30

(a)(b)

...............

USD

379

$

379,374

Regatta

XI

Funding

Ltd.,

Series

2018-1A,

Class

B,

(3-mo.

CME

Term

SOFR

+

1.91%),

7.31%,

07/17/31

(a)(b)

...............

650

650,138

Regatta

XIV

Funding

Ltd.,

Series

2018-3A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.19%

Floor

+

1.45%),

6.83%,

10/25/31

(a)(b)

....

1,000

1,001,238

Regatta

XV

Funding

Ltd.,

Series

2018-4A,

Class

A2,

(3-mo.

CME

Term

SOFR

at

1.85%

Floor

+

2.11%),

7.49%,

10/25/31

(a)(b)

....

1,500

1,497,623

Rockford

Tower

CLO

Ltd.

(a)(b)

Series

2019-2A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

2.00%

Floor

+

2.26%),

7.63%,

08/20/32

...............

500

496,372

Series

2021-3A,

Class

A1,

(3-mo.

CME

Term

SOFR

at

1.18%

Floor

+

1.44%),

6.86%,

10/20/34

....................

1,250

1,242,176

Series

2021-3A,

Class

C,

(3-mo.

CME

Term

SOFR

at

2.15%

Floor

+

2.41%),

7.83%,

10/20/34

....................

1,000

991,385

RR

17

Ltd.,

Series

2021-17A,

Class

A2,

(3-mo.

CME

Term

SOFR

at

1.65%

Floor

+

1.91%),

7.31%,

07/15/34

(a)(b)

...............

500

500,506

RRX

4

Ltd.,

Series

2021-4A,

Class

A1,

(3-mo.

CME

Term

SOFR

at

1.20%

Floor

+

1.46%),

6.86%,

07/15/34

(a)(b)

...............

2,500

2,504,424

Signal

Peak

CLO

10

Ltd.,

Series

2021-9A,

Class

B,

(3-mo.

CME

Term

SOFR

at

1.70%

Floor

+

1.96%),

7.37%,

07/21/34

(a)(b)

....

2,000

1,985,675

Sixth

Street

CLO

XIX

Ltd.,

Series

2021-19A,

Class

B,

(3-mo.

CME

Term

SOFR

at

1.70%

Floor

+

1.96%),

7.38%,

07/20/34

(a)(b)

....

1,000

998,022

Sound

Point

CLO

XXIII,

Series

2019-2A,

Class

AR,

(3-mo.

CME

Term

SOFR

at

1.17%

Floor

+

1.43%),

6.83%,

07/15/34

(a)(b)

........

1,000

994,821

Symphony

CLO

XXVIII

Ltd.,

Series

2021-28A,

Class

A,

(3-mo.

CME

Term

SOFR

at

1.14%

Floor

+

1.40%),

6.81%,

10/23/34

(a)(b)

....

1,000

998,078

TCI-Flatiron

CLO

Ltd.

(a)(b)

Series

2018-1A,

Class

CR,

(3-mo.

CME

Term

SOFR

at

1.75%

Floor

+

2.01%),

7.40%,

01/29/32

...............

1,000

987,763

Series

2018-1A,

Class

DR,

(3-mo.

CME

Term

SOFR

at

2.75%

Floor

+

3.01%),

8.40%,

01/29/32

...............

1,000

994,707

TCW

CLO

Ltd.,

Series

2021-1A,

Class

C,

(3-mo.

CME

Term

SOFR

at

1.90%

Floor

+

2.16%),

7.58%,

03/18/34

(a)(b)

.........

500

486,457

TICP

CLO

VI

Ltd.,

Series

2016-6A,

Class

BR2,

(3-mo.

CME

Term

SOFR

at

1.50%

Floor

+

1.76%),

7.16%,

01/15/34

(a)(b)

.........

1,000

991,435

TICP

CLO

VII

Ltd.,

Series

2017-7A,

Class

ASR,

(3-mo.

CME

Term

SOFR

at

1.27%

Floor

+

1.53%),

6.93%,

04/15/33

(a)(b)

.........

1,300

1,302,859

Webster

Park

CLO

Ltd.,

Series

2015-1A,

Class

A1BR,

(3-mo.

CME

Term

SOFR

at

1.35%

Floor

+

1.61%),

7.03%,

07/20/30

(a)(b)

....

1,000

995,031

Whitebox

CLO

III

Ltd.,

Series

2021-3A,

Class

A1,

(3-mo.

CME

Term

SOFR

at

1.22%

Floor

+

1.48%),

6.88%,

10/15/34

(a)(b)

........

2,000

1,996,050

Total

Asset-Backed

Securities

—

16.4%

(Cost:

$121,082,469)

.............................

121,517,706

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

12

(Percentages

shown

are

based

on

Net

Assets)

Security

Shares

Shares

Value

Common

Stocks

Aerospace

&

Defense

—

0.2%

BAE

Systems

plc

...................

113,825

$

1,611,192

Air

Freight

&

Logistics

—

0.2%

United

Parcel

Service,

Inc.,

Class

B

......

10,493

1,649,814

Banks

—

0.6%

Bank

Rakyat

Indonesia

Persero

Tbk.

PT

...

2,139,900

795,332

Citizens

Financial

Group,

Inc.

..........

48,044

1,592,178

DBS

Group

Holdings

Ltd.

.............

40,600

1,026,727

M&T

Bank

Corp.

...................

8,575

1,175,461

4,589,698

Biotechnology

—

0.3%

AbbVie,

Inc.

......................

13,975

2,165,706

Building

Products

—

0.4%

Allegion

plc

.......................

13,554

1,717,156

Carrier

Global

Corp.

.................

25,927

1,489,506

3,206,662

Capital

Markets

—

0.3%

Intercontinental

Exchange,

Inc.

.........

16,279

2,090,712

Chemicals

—

0.2%

Air

Liquide

SA

.....................

9,205

1,792,171

Commercial

Services

&

Supplies

—

0.2%

Republic

Services,

Inc.

...............

9,565

1,577,364

Consumer

Finance

—

0.3%

American

Express

Co.

...............

6,508

1,219,209

Synchrony

Financial

.................

23,195

885,817

2,105,026

Consumer

Staples

Distribution

&

Retail

—

0.2%

Wal-Mart

de

Mexico

SAB

de

CV

.........

371,536

1,561,978

Diversified

REITs

—

0.0%

(c)

Cromwell

European

REIT

.............

61,800

96,829

LXI

REIT

plc

......................

116,646

155,820

252,649

Diversified

Telecommunication

Services

—

0.5%

Cellnex

Telecom

SA

(b)(c)

...............

5,409

212,968

Koninklijke

KPN

NV

.................

460,084

1,585,049

TELUS

Corp.

.....................

87,337

1,554,210

3,352,227

Electronic

Equipment,

Instruments

&

Components

—

0.2%

TE

Connectivity

Ltd.

.................

8,516

1,196,498

Energy

Equipment

&

Services

—

0.2%

Baker

Hughes

Co.,

Class

A

............

48,953

1,673,214

Financial

Services

—

0.0%

(a)

Travelport

Finance

..................

30

71,766

Food

Products

—

0.6%

Mondelez

International,

Inc.,

Class

A

......

31,284

2,265,900

Nestle

SA

(Registered)

...............

20,470

2,372,880

4,638,780

Ground

Transportation

—

0.3%

Union

Pacific

Corp.

.................

8,817

2,165,632

Health

Care

Equipment

&

Supplies

—

0.5%

EssilorLuxottica

SA

.................

10,168

2,041,722

Medtronic

plc

.....................

18,334

1,510,355

3,552,077

Security

Shares

Shares

Value

Health

Care

Providers

&

Services

—

0.3%

Envision

Healthcare

Corp.

(d)(e)

..........

2,678

$

20,085

UnitedHealth

Group,

Inc.

..............

3,800

2,000,586

2,020,671

Health

Care

REITs

—

0.2%

Assura

plc

.......................

533,202

327,046

CareTrust

REIT,

Inc.

.................

11,974

267,978

Community

Healthcare

Trust,

Inc.

........

1,215

32,368

Healthpeak

Properties,

Inc.

............

11,880

235,224

Physicians

Realty

Trust

...............

19,789

263,392

Target

Healthcare

REIT

plc

............

155,392

170,891

Ventas,

Inc.

......................

1,680

83,731

Welltower,

Inc.

.....................

1,189

107,212

1,487,842

Household

Durables

—

0.2%

Taylor

Wimpey

plc

..................

904,308

1,692,789

Industrial

REITs

—

0.2%

ESR

Kendall

Square

REIT

Co.

Ltd.

.......

52,189

147,770

Goodman

Group

...................

10,185

175,354

LondonMetric

Property

plc

.............

53,744

130,902

Prologis,

Inc.

......................

2,692

358,843

Rexford

Industrial

Realty,

Inc.

..........

5,728

321,341

Warehouses

De

Pauw

CVA

............

8,577

269,988

1,404,198

Insurance

—

0.6%

Assurant,

Inc.

.....................

6,997

1,178,925

Prudential

plc

.....................

114,000

1,286,227

Zurich

Insurance

Group

AG

............

3,071

1,605,602

4,070,754

IT

Services

—

0.3%

Accenture

plc,

Class

A

...............

6,052

2,123,707

NEXTDC

Ltd.

(d)

....................

21,871

204,250

SUNeVision

Holdings

Ltd.

.............

302,000

119,583

2,447,540

Machinery

—

0.3%

Otis

Worldwide

Corp.

................

23,898

2,138,154

Media

—

0.0%

Learfield

Communications

LLC,

(Acquired

09/06/23,

cost

$9,686)

(d)(e)(f)

..........

771

32,768

Office

REITs

—

0.1%

Alexandria

Real

Estate

Equities,

Inc.

......

1,308

165,815

Boston

Properties,

Inc.

...............

2,996

210,229

SL

Green

Realty

Corp.

...............

3,167

143,054

519,098

Oil,

Gas

&

Consumable

Fuels

—

0.4%

Shell

plc

.........................

50,080

1,647,797

Williams

Cos.,

Inc.

(The)

..............

31,623

1,101,429

2,749,226

Pharmaceuticals

—

0.8%

AstraZeneca

plc

...................

16,180

2,182,519

Novo

Nordisk

A/S,

Class

B

............

16,338

1,693,126

Sanofi

SA

........................

19,941

1,981,592

5,857,237

Professional

Services

—

0.5%

NMG,

Inc.

(d)

.......................

265

26,500

Paychex,

Inc.

.....................

15,866

1,889,799

RELX

plc

........................

48,861

1,935,943

3,852,242

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

13

(Percentages

shown

are

based

on

Net

Assets)

Security

Shares

Shares

Value

Real

Estate

Management

&

Development

—

0.1%

CK

Asset

Holdings

Ltd.

...............

71,000

$

356,356

Corp.

Inmobiliaria

Vesta

SAB

de

CV,

ADR

..

3,106

123,060

VGP

NV

.........................

723

83,775

Vonovia

SE

.......................

4,782

150,259

Wharf

Real

Estate

Investment

Co.

Ltd.

....

27,000

91,273

804,723

Residential

REITs

—

0.1%

Sun

Communities,

Inc.

...............

2,571

343,614

UDR,

Inc.

........................

10,593

405,606

749,220

Retail

REITs

—

0.0%

Link

REIT

........................

62,400

350,379

Semiconductors

&

Semiconductor

Equipment

—

0.5%

MediaTek,

Inc.

.....................

53,000

1,750,055

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

115,000

2,204,728

3,954,783

Software

—

0.8%

Microsoft

Corp.

....................

10,639

4,000,689

Oracle

Corp.

......................

16,240

1,712,183

5,712,872

Specialized

REITs

—

0.3%

American

Tower

Corp.

...............

1,213

261,862

Crown

Castle,

Inc.

..................

1,781

205,153

Digital

Realty

Trust,

Inc.

..............

1,124

151,268

EPR

Properties

....................

4,872

236,048

Equinix,

Inc.

......................

191

153,830

Extra

Space

Storage,

Inc.

.............

1,375

220,454

SBA

Communications

Corp.

...........

988

250,646

VICI

Properties,

Inc.

.................

11,677

372,263

1,851,524

Technology

Hardware,

Storage

&

Peripherals

—

0.4%

Apple,

Inc.

.......................

14,414

2,775,127

Textiles,

Apparel

&

Luxury

Goods

—

0.2%

LVMH

Moet

Hennessy

Louis

Vuitton

SE

....

1,999

1,624,262

Tobacco

—

0.3%

Philip

Morris

International,

Inc.

..........

21,472

2,020,086

Total

Common

Stocks

—

11.8%

(Cost:

$80,092,953)

..............................

87,368,661

Par

(000)

Par

(000)

Corporate

Bonds

Aerospace

&

Defense

—

1.1%

Boeing

Co.

(The)

2.85%,

10/30/24

.................

USD

375

366,655

2.20%,

02/04/26

.................

1,333

1,259,534

2.70%,

02/01/27

.................

450

424,299

5.15%,

05/01/30

.................

1,175

1,196,163

3.63%,

02/01/31

.................

151

140,247

Bombardier,

Inc.

(b)

7.13%,

06/15/26

.................

72

71,664

7.88%,

04/15/27

.................

16

16,003

6.00%,

02/15/28

.................

83

80,865

7.50%,

02/01/29

.................

37

37,613

8.75%,

11/15/30

.................

62

66,011

7.45%,

05/01/34

.................

100

114,000

BWX

Technologies,

Inc.,

4.13%,

06/30/28

(b)

.

82

76,038

Castlelake

Aviation

Finance

DAC,

5.00%,

04/15/27

(b)

....................

5

4,681

Security

Par

(000)

Par

(000)

Value

Aerospace

&

Defense

(continued)

General

Dynamics

Corp.

3.50%,

05/15/25

.................

USD

9

$

8,833

3.50%,

04/01/27

.................

39

37,994

3.75%,

05/15/28

.................

37

36,324

2.25%,

06/01/31

.................

45

39,121

L3Harris

Technologies,

Inc.

3.85%,

12/15/26

.................

100

98,013

4.40%,

06/15/28

.................

649

641,481

2.90%,

12/15/29

.................

12

10,844

5.40%,

07/31/33

.................

242

251,618

Lockheed

Martin

Corp.,

4.50%,

05/15/36

..

135

133,563

Northrop

Grumman

Corp.,

3.25%,

01/15/28

.

161

153,848

Rolls-Royce

plc,

5.75%,

10/15/27

(b)

......

200

200,344

RTX

Corp.

4.13%,

11/16/28

.................

332

324,356

5.75%,

01/15/29

.................

619

647,010

2.25%,

07/01/30

.................

8

6,911

5.15%,

02/27/33

.................

700

713,401

Spirit

AeroSystems,

Inc.

(b)

9.38%,

11/30/29

.................

78

85,354

9.75%,

11/15/30

.................

67

72,023

TransDigm,

Inc.

(b)

6.75%,

08/15/28

.................

452

462,433

7.13%,

12/01/31

.................

144

150,900

Triumph

Group,

Inc.,

9.00%,

03/15/28

(b)

...

139

147,805

Wesco

Aircraft

Holdings,

Inc.,

9.00%,

11/15/26

(b)(d)(g)

..................

92

8,763

8,084,712

Air

Freight

&

Logistics

—

0.0%

FedEx

Corp.,

2.40%,

05/15/31

.........

95

81,768

GN

Bondco

LLC,

9.50%,

10/15/31

(b)

.....

50

48,815

130,583

Automobile

Components

—

0.1%

Aptiv

plc,

3.25%,

03/01/32

...........

225

198,764

Clarios

Global

LP

(b)

6.75%,

05/15/25

.................

118

119,039

6.25%,

05/15/26

.................

23

23,030

8.50%,

05/15/27

.................

348

349,213

6.75%,

05/15/28

.................

118

120,385

Dealer

Tire

LLC,

8.00%,

02/01/28

(b)

......

16

15,840

Goodyear

Tire

&

Rubber

Co.

(The)

5.00%,

07/15/29

.................

5

4,724

5.63%,

04/30/33

.................

47

42,130

Icahn

Enterprises

LP

6.25%,

05/15/26

.................

54

51,522

5.25%,

05/15/27

.................

76

68,265

9.75%,

01/15/29

(b)

................

41

41,828

4.38%,

02/01/29

.................

34

28,392

Tenneco,

Inc.,

8.00%,

11/17/28

(b)

.......

25

21,344

1,084,476

Automobiles

—

0.6%

Daimler

Truck

Finance

North

America

LLC

(b)

5.15%,

01/16/26

.................

300

300,822

3.65%,

04/07/27

.................

150

144,560

Ford

Motor

Co.,

6.10%,

08/19/32

.......

481

484,863

General

Motors

Co.

6.13%,

10/01/25

.................

45

45,605

5.00%,

10/01/28

.................

16

16,124

6.60%,

04/01/36

.................

9

9,632

Hyundai

Capital

America

(b)

0.80%,

01/08/24

.................

315

314,785

1.00%,

09/17/24

.................

455

440,413

1.80%,

10/15/25

.................

221

207,659

6.25%,

11/03/25

.................

480

487,046

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

14

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Automobiles

(continued)

6.50%,

01/16/29

.................

USD

109

$

115,070

Nissan

Motor

Acceptance

Co.

LLC

(b)

2.00%,

03/09/26

.................

400

367,568

1.85%,

09/16/26

.................

161

144,757

2.75%,

03/09/28

.................

60

52,932

7.05%,

09/15/28

.................

334

352,380

Nissan

Motor

Co.

Ltd.,

4.35%,

09/17/27

(b)

..

435

416,113

Volkswagen

Group

of

America

Finance

LLC,

5.80%,

09/12/25

(b)

...............

344

346,758

4,247,087

Banks

—

5.7%

Banco

Bilbao

Vizcaya

Argentaria

SA,

(5-Year

USD

Swap

Semi

+

3.87%),

6.13%

(a)(h)

...

800

728,088

Bank

of

America

Corp.

(a)

(3-mo.

CME

Term

SOFR

+

1.07%),

3.37%,

01/23/26

....................

390

380,887

(1-day

SOFR

+

1.15%),

1.32%,

06/19/26

190

178,815

(1-day

SOFR

+

1.01%),

1.20%,

10/24/26

66

61,285

(1-day

SOFR

+

1.29%),

5.08%,

01/20/27

550

548,789

(3-mo.

CME

Term

SOFR

+

1.32%),

3.56%,

04/23/27

....................

1,003

965,335

(1-day

SOFR

+

0.96%),

1.73%,

07/22/27

116

106,273

(1-day

SOFR

+

1.05%),

2.55%,

02/04/28

618

572,475

(3-mo.

CME

Term

SOFR

+

1.77%),

3.71%,

04/24/28

....................

23

21,963

(3-mo.

CME

Term

SOFR

+

1.63%),

3.59%,

07/21/28

....................

1,216

1,153,373

(1-day

SOFR

+

2.04%),

4.95%,

07/22/28

605

604,918

(3-mo.

CME

Term

SOFR

+

1.30%),

3.42%,

12/20/28

....................

395

372,062

(1-day

SOFR

+

1.06%),

2.09%,

06/14/29

604

532,316

(3-mo.

CME

Term

SOFR

+

1.57%),

4.27%,

07/23/29

....................

326

314,749

(3-mo.

CME

Term

SOFR

+

1.47%),

3.97%,

02/07/30

....................

201

190,246

(3-mo.

CME

Term

SOFR

+

1.44%),

3.19%,

07/23/30

....................

300

272,012

(1-day

SOFR

+

2.15%),

2.59%,

04/29/31

86

74,114

(1-day

SOFR

+

1.21%),

2.57%,

10/20/32

125

103,634

(1-day

SOFR

+

1.33%),

2.97%,

02/04/33

107

91,038

Bank

of

Ireland

Group

plc,

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

2.65%),

6.25%,

09/16/26

(a)(b)

.........

330

333,482

Barclays

plc

3.65%,

03/16/25

.................

661

646,226

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

5.87%),

6.13%

(a)(h)

....................

775

741,256

4.38%,

01/12/26

.................

200

197,270

5.20%,

05/12/26

.................

209

207,645

(1-day

SOFR

+

2.21%),

5.83%,

05/09/27

(a)

200

201,789

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

1.05%),

2.28%,

11/24/27

(a)

...................

366

336,284

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.41%),

4.38%

(a)(h)

....................

200

155,481

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.30%),

7.39%,

11/02/28

(a)

...................

200

213,733

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

5.43%),

8.00%

(a)(h)

....................

730

716,431

(1-day

SOFR

+

2.22%),

6.49%,

09/13/29

(a)

960

999,523

(USISSO05

+

5.78%),

9.63%

(a)(h)

......

420

436,275

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

(3-mo.

LIBOR

USD

+

3.05%),

5.09%,

06/20/30

(a)

...................

USD

400

$

387,269

BNP

Paribas

SA

(a)(b)

(1-day

SOFR

+

1.00%),

1.32%,

01/13/27

226

208,399

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

4.35%),

8.50%

(h)

.....................

235

246,098

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.34%),

4.63%

(h)

.....................

1,750

1,409,584

Citigroup,

Inc.

(a)

(1-day

SOFR

+

2.84%),

3.11%,

04/08/26

199

193,410

(1-day

SOFR

+

0.77%),

1.12%,

01/28/27

132

121,282

(3-mo.

CME

Term

SOFR

+

1.82%),

3.89%,

01/10/28

....................

1,275

1,232,909

(1-day

SOFR

+

1.28%),

3.07%,

02/24/28

51

48,056

(3-mo.

CME

Term

SOFR

+

1.65%),

3.67%,

07/24/28

....................

125

119,129

(3-mo.

CME

Term

SOFR

+

1.41%),

3.52%,

10/27/28

....................

335

316,831

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.21%),

7.63%

(h)

.....................

42

42,886

(1-day

SOFR

+

1.42%),

2.98%,

11/05/30

217

193,216

(1-day

SOFR

+

2.11%),

2.57%,

06/03/31

5

4,271

(1-day

SOFR

+

1.17%),

2.56%,

05/01/32

190

158,522

(1-day

SOFR

+

1.94%),

3.79%,

03/17/33

226

203,253

(1-day

SOFR

+

2.66%),

6.17%,

05/25/34

168

173,842

Danske

Bank

A/S,

(7-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

4.13%),

7.00%

(a)(c)(h)

..............

725

713,219

Fifth

Third

Bancorp

(a)

(SOFR

Index

+

2.19%),

6.36%,

10/27/28

170

176,390

(1-day

SOFR

+

2.34%),

6.34%,

07/27/29

704

732,990

HSBC

Holdings

plc

(a)

(1-day

SOFR

+

0.71%),

0.98%,

05/24/25

235

230,222

(1-day

SOFR

+

1.43%),

3.00%,

03/10/26

200

193,912

(1-day

SOFR

+

1.54%),

1.65%,

04/18/26

254

241,337

(1-day

SOFR

+

1.57%),

5.89%,

08/14/27

655

664,067

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.86%),

8.00%

(h)

.....................

200

205,858

(1-day

SOFR

+

1.97%),

6.16%,

03/09/29

935

965,469

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.65%),

4.60%

(h)

.....................

260

216,844

HSBC

USA,

Inc.,

5.63%,

03/17/25

......

200

200,946

JPMorgan

Chase

&

Co.

2.95%,

10/01/26

.................

130

123,834

(3-mo.

CME

Term

SOFR

+

0.70%),

1.04%,

02/04/27

(a)

...................

187

171,865

(1-day

SOFR

+

0.89%),

1.58%,

04/22/27

(a)

691

637,671

(1-day

SOFR

+

0.77%),

1.47%,

09/22/27

(a)

404

366,028

(3-mo.

CME

Term

SOFR

+

1.64%),

3.54%,

05/01/28

(a)

...................

195

186,099

(1-day

SOFR

+

1.99%),

4.85%,

07/25/28

(a)

71

71,020

(3-mo.

CME

Term

SOFR

+

1.38%),

4.01%,

04/23/29

(a)

...................

346

332,902

(1-day

SOFR

+

1.02%),

2.07%,

06/01/29

(a)

460

407,859

(1-day

SOFR

+

1.45%),

5.30%,

07/24/29

(a)

1,848

1,875,186

(1-day

SOFR

+

1.57%),

6.09%,

10/23/29

(a)

186

195,563

Lloyds

Banking

Group

plc

(a)

(3-mo.

LIBOR

USD

+

1.21%),

3.57%,

11/07/28

....................

204

191,669

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

15

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.91%),

8.00%

(h)

.....................

USD

200

$

200,399

Mitsubishi

UFJ

Financial

Group,

Inc.

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

0.55%),

0.95%,

07/19/25

(a)

...................

432

420,933

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

0.67%),

1.64%,

10/13/27

(a)

...................

200

182,089

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

0.83%),

2.34%,

01/19/28

(a)

...................

200

185,060

3.96%,

03/02/28

.................

6

5,843

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.29%),

8.20%

(a)(h)

....................

200

216,999

3.74%,

03/07/29

.................

71

67,926

2.05%,

07/17/30

.................

200

168,248

National

Australia

Bank

Ltd.,

3.91%,

06/09/27

250

244,991

NatWest

Group

plc

(3-mo.

LIBOR

USD

+

1.76%),

4.27%,

03/22/25

(a)

...................

440

438,439

4.80%,

04/05/26

.................

200

198,155

PNC

Financial

Services

Group,

Inc.

(The)

(a)

(SOFR

Index

+

1.73%),

6.62%,

10/20/27

103

106,844

(1-day

SOFR

+

1.84%),

5.58%,

06/12/29

670

684,293

(1-day

SOFR

+

2.28%),

6.88%,

10/20/34

264

293,076

Royal

Bank

of

Canada,

6.00%,

11/01/27

...

27

28,287

Santander

Holdings

USA,

Inc.,

(1-day

SOFR

+

2.36%),

6.50%,

03/09/29

(a)

..........

952

983,487

Societe

Generale

SA

(a)(b)(h)

(5-Year

USD

Swap

Rate

+

5.87%),

8.00%

400

399,703

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

4.51%),

5.38%

400

327,253

Sumitomo

Mitsui

Financial

Group,

Inc.

5.46%,

01/13/26

.................

865

873,477

5.72%,

09/14/28

.................

587

607,878

Toronto-Dominion

Bank

(The)

0.75%,

01/06/26

.................

309

285,423

5.10%,

01/09/26

.................

168

169,158

5.16%,

01/10/28

.................

171

173,579

5.52%,

07/17/28

.................

50

51,477

Truist

Financial

Corp.

(1-day

SOFR

+

2.05%),

6.05%,

06/08/27

(a)

467

475,225

1.13%,

08/03/27

.................

15

13,131

(1-day

SOFR

+

0.86%),

1.89%,

06/07/29

(a)

34

29,381

(1-day

SOFR

+

2.45%),

7.16%,

10/30/29

(a)

1,119

1,208,557

UniCredit

SpA,

(5-Year

USD

Swap

Semi

+

5.18%),

8.00%

(a)(c)(h)

..............

400

397,600

US

Bancorp

(a)

(1-day

SOFR

+

1.66%),

4.55%,

07/22/28

270

266,018

(1-day

SOFR

+

1.23%),

4.65%,

02/01/29

6

5,906

(1-day

SOFR

+

2.02%),

5.78%,

06/12/29

795

816,746

(1-day

SOFR

+

1.60%),

4.84%,

02/01/34

7

6,705

(1-day

SOFR

+

2.26%),

5.84%,

06/12/34

219

225,904

Wells

Fargo

&

Co.

(a)

(1-day

SOFR

+

1.32%),

3.91%,

04/25/26

1,100

1,078,172

(1-day

SOFR

+

2.00%),

2.19%,

04/30/26

275

263,551

(3-mo.

CME

Term

SOFR

+

1.57%),

3.58%,

05/22/28

....................

109

103,830

(1-day

SOFR

+

1.98%),

4.81%,

07/25/28

487

483,431

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.61%),

7.63%

(h)

.....................

61

64,008

(1-day

SOFR

+

1.74%),

5.57%,

07/25/29

741

756,612

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

(1-day

SOFR

+

1.79%),

6.30%,

10/23/29

USD

160

$

168,627

(1-day

SOFR

+

2.06%),

6.49%,

10/23/34

1,248

1,357,684

Wells

Fargo

Bank

NA,

5.45%,

08/07/26

...

253

257,122

Westpac

Banking

Corp.

(a)

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

2.00%),

4.11%,

07/24/34

....................

14

12,799

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

1.75%),

2.67%,

11/15/35

....................

61

49,617

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

1.53%),

3.02%,

11/18/36

....................

23

18,697

41,990,014

Beverages

—

0.1%

Anheuser-Busch

Cos.

LLC,

4.70%,

02/01/36

22

21,928

Anheuser-Busch

InBev

Worldwide,

Inc.

4.00%,

04/13/28

(i)

................

285

281,497

4.75%,

01/23/29

.................

517

525,035

4.90%,

01/23/31

.................

137

142,521

970,981

Biotechnology

—

0.9%

AbbVie,

Inc.

2.95%,

11/21/26

.................

1,257

1,205,334

3.20%,

11/21/29

.................

461

430,938

Amgen,

Inc.

2.60%,

08/19/26

.................

175

166,293

5.15%,

03/02/28

.................

960

982,801

5.25%,

03/02/33

.................

357

366,008

Gilead

Sciences,

Inc.

3.65%,

03/01/26

.................

3,409

3,339,841

4.60%,

09/01/35

.................

238

235,411

6,726,626

Broadline

Retail

—

0.0%

(b)

ANGI

Group

LLC,

3.88%,

08/15/28

......

25

21,113

Go

Daddy

Operating

Co.

LLC,

5.25%,

12/01/27

42

41,156

LCM

Investments

Holdings

II

LLC

4.88%,

05/01/29

.................

61

56,664

8.25%,

08/01/31

.................

35

36,529

Match

Group

Holdings

II

LLC

4.63%,

06/01/28

.................

54

51,705

5.63%,

02/15/29

.................

27

26,224

NMG

Holding

Co.,

Inc.,

7.13%,

04/01/26

...

23

22,102

255,493

Building

Products

—

0.1%

(b)

Advanced

Drainage

Systems,

Inc.

5.00%,

09/30/27

.................

90

86,850

6.38%,

06/15/30

.................

11

11,082

Camelot

Return

Merger

Sub,

Inc.,

8.75%,

08/01/28

.....................

40

40,601

Carrier

Global

Corp.

5.80%,

11/30/25

.................

215

217,860

5.90%,

03/15/34

.................

63

68,141

Masonite

International

Corp.

5.38%,

02/01/28

.................

23

22,080

3.50%,

02/15/30

.................

29

25,138

New

Enterprise

Stone

&

Lime

Co.,

Inc.

5.25%,

07/15/28

.................

34

32,433

9.75%,

07/15/28

.................

15

15,000

Standard

Industries,

Inc.

5.00%,

02/15/27

.................

49

47,772

4.75%,

01/15/28

.................

4

3,851

4.38%,

07/15/30

.................

48

44,083

3.38%,

01/15/31

.................

34

29,249

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

16

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Building

Products

(continued)

Summit

Materials

LLC

5.25%,

01/15/29

.................

USD

16

$

15,480

7.25%,

01/15/31

.................

63

66,383

726,003

Capital

Markets

—

2.6%

AerCap

Ireland

Capital

DAC

3.50%,

01/15/25

.................

200

195,466

1.75%,

01/30/26

.................

150

139,294

2.45%,

10/29/26

.................

250

231,480

6.10%,

01/15/27

.................

216

220,609

6.45%,

04/15/27

(b)

................

205

212,260

5.75%,

06/06/28

.................

735

752,229

AG

TTMT

Escrow

Issuer

LLC,

8.63%,

09/30/27

(b)

....................

23

24,182

Ares

Capital

Corp.,

7.00%,

01/15/27

.....

20

20,572

Aretec

Group,

Inc.,

10.00%,

08/15/30

(b)

...

15

15,940

Blackstone

Private

Credit

Fund

7.05%,

09/29/25

.................

21

21,371

3.25%,

03/15/27

.................

67

61,462

Blue

Owl

Capital

Corp.

3.75%,

07/22/25

.................

59

56,512

3.40%,

07/15/26

.................

12

11,156

Blue

Owl

Capital

Corp.

II,

8.45%,

11/15/26

(b)

20

20,605

Blue

Owl

Credit

Income

Corp.

5.50%,

03/21/25

.................

25

24,646

7.75%,

09/16/27

.................

45

46,397

Charles

Schwab

Corp.

(The)

3.63%,

04/01/25

.................

200

196,332

5.88%,

08/24/26

.................

590

605,131

3.20%,

03/02/27

.................

155

147,497

3.30%,

04/01/27

.................

120

114,169

(1-day

SOFR

+

2.01%),

6.14%,

08/24/34

(a)

229

241,383

Compass

Group

Diversified

Holdings

LLC,

5.25%,

04/15/29

(b)

...............

53

50,065

Credit

Suisse

AG

4.75%,

08/09/24

.................

288

286,216

3.70%,

02/21/25

.................

500

489,714

2.95%,

04/09/25

.................

400

387,647

7.50%,

02/15/28

.................

515

564,031

Deutsche

Bank

AG

(a)

(1-day

SOFR

+

1.13%),

1.45%,

04/01/25

555

548,306

Series

2020,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

4.52%),

6.00%

(h)

...............

800

723,990

(1-day

SOFR

+

1.32%),

2.55%,

01/07/28

240

220,303

(1-day

SOFR

+

3.18%),

6.72%,

01/18/29

175

183,261

(1-day

SOFR

+

2.51%),

6.82%,

11/20/29

914

962,300

(1-day

SOFR

+

3.65%),

7.08%,

02/10/34

215

221,094

Goldman

Sachs

Group,

Inc.

(The)

(3-mo.

CME

Term

SOFR

+

1.46%),

3.27%,

09/29/25

(a)

...................

345

339,165

(1-day

SOFR

+

0.61%),

0.86%,

02/12/26

(a)

100

94,820

(1-day

SOFR

+

1.08%),

5.80%,

08/10/26

(a)

402

405,884

(1-day

SOFR

+

0.79%),

1.09%,

12/09/26

(a)

100

92,097

(1-day

SOFR

+

0.80%),

1.43%,

03/09/27

(a)

560

516,369

(1-day

SOFR

+

1.73%),

4.48%,

08/23/28

(a)

64

62,870

(3-mo.

CME

Term

SOFR

+

1.42%),

3.81%,

04/23/29

(a)

...................

75

71,203

(3-mo.

CME

Term

SOFR

+

1.56%),

4.22%,

05/01/29

(a)

...................

100

96,733

(1-day

SOFR

+

1.28%),

2.62%,

04/22/32

(a)

106

88,977

(1-day

SOFR

+

1.25%),

2.38%,

07/21/32

(a)

100

82,163

(1-day

SOFR

+

1.26%),

2.65%,

10/21/32

(a)

85

70,831

6.45%,

05/01/36

.................

8

8,635

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

Intercontinental

Exchange,

Inc.

3.10%,

09/15/27

.................

USD

80

$

76,056

4.00%,

09/15/27

.................

184

180,913

1.85%,

09/15/32

.................

216

172,745

Lehman

Brothers

Holdings,

Inc.,

6.88%,

07/17/37

(d)(e)(g)

..................

203

—

Morgan

Stanley

(a)

(1-day

SOFR

+

1.99%),

2.19%,

04/28/26

5

4,803

(1-day

SOFR

+

0.88%),

1.59%,

05/04/27

967

890,982

(1-day

SOFR

+

0.86%),

1.51%,

07/20/27

705

643,951

(1-day

SOFR

+

1.00%),

2.48%,

01/21/28

45

41,768

(3-mo.

CME

Term

SOFR

+

1.40%),

3.77%,

01/24/29

....................

904

862,129

(1-day

SOFR

+

1.59%),

5.16%,

04/20/29

651

654,721

(1-day

SOFR

+

1.63%),

5.45%,

07/20/29

375

382,107

(1-day

SOFR

+

1.83%),

6.41%,

11/01/29

543

575,463

(3-mo.

CME

Term

SOFR

+

1.89%),

4.43%,

01/23/30

....................

205

199,665

(1-day

SOFR

+

1.02%),

1.93%,

04/28/32

60

48,248

(1-day

SOFR

+

1.18%),

2.24%,

07/21/32

133

108,560

(1-day

SOFR

+

1.29%),

2.94%,

01/21/33

105

89,319

(1-day

SOFR

+

2.05%),

6.63%,

11/01/34

57

63,102

(1-day

SOFR

+

1.36%),

2.48%,

09/16/36

81

64,200

Nasdaq,

Inc.

5.35%,

06/28/28

.................

169

174,061

5.55%,

02/15/34

.................

36

37,399

Northern

Trust

Corp.,

6.13%,

11/02/32

....

22

23,624

Oaktree

Strategic

Credit

Fund,

8.40%,

11/14/28

(b)

....................

22

23,173

S&P

Global,

Inc.,

5.25%,

09/15/33

(b)

.....

128

133,916

State

Street

Corp.

(1-day

SOFR

+

0.41%),

1.75%,

02/06/26

(a)

13

12,492

(1-day

SOFR

+

2.60%),

2.90%,

03/30/26

(a)

7

6,801

(1-day

SOFR

+

1.48%),

5.68%,

11/21/29

(a)

16

16,544

2.40%,

01/24/30

.................

7

6,248

(1-day

SOFR

+

1.00%),

2.62%,

02/07/33

(a)

26

21,893

(3-mo.

CME

Term

SOFR

+

1.26%),

6.65%,

06/15/47

(a)

...................

1,788

1,466,227

UBS

AG,

1.38%,

01/13/25

(b)

..........

231

221,952

UBS

Group

AG

(a)(b)

(SOFR

Index

+

0.98%),

1.31%,

02/02/27

374

342,295

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.40%),

4.88%

(h)

.....................

200

180,144

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

2.05%),

4.70%,

08/05/27

....................

700

690,039

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

4.76%),

9.25%

(h)

.....................

200

221,653

(1-day

SOFR

+

5.02%),

9.02%,

11/15/33

400

491,694

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

2.00%),

6.30%,

09/22/34

....................

200

211,725

19,265,979

Chemicals

—

0.3%

Ashland,

Inc.,

3.38%,

09/01/31

(b)

........

20

17,238

Avient

Corp.,

7.13%,

08/01/30

(b)

........

36

37,449

Axalta

Coating

Systems

LLC,

3.38%,

02/15/29

(b)

....................

150

134,614

Celanese

US

Holdings

LLC,

6.70%,

11/15/33

12

13,015

Chemours

Co.

(The)

(b)

5.75%,

11/15/28

.................

40

38,100

4.63%,

11/15/29

.................

12

10,536

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

17

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Chemicals

(continued)

DuPont

de

Nemours,

Inc.

4.49%,

11/15/25

.................

USD

62

$

61,544

4.73%,

11/15/28

.................

64

64,942

Eastman

Chemical

Co.,

5.75%,

03/08/33

..

403

416,387

Element

Solutions,

Inc.,

3.88%,

09/01/28

(b)

.

200

184,127

Gates

Global

LLC,

6.25%,

01/15/26

(b)

.....

32

31,840

Herens

Holdco

SARL,

4.75%,

05/15/28

(b)

..

200

164,077

Illuminate

Buyer

LLC,

9.00%,

07/01/28

(b)

...

75

71,715

Ingevity

Corp.,

3.88%,

11/01/28

(b)

.......

26

23,284

Kobe

U.S.

Midco

2,

Inc.,

9.25%,

11/01/26

(b)

.

74

53,517

LSF11

A5

HoldCo

LLC,

6.63%,

10/15/29

(b)

..

24

20,295

Minerals

Technologies,

Inc.,

5.00%,

07/01/28

(b)

25

24,042

Nutrien

Ltd.

5.95%,

11/07/25

.................

54

54,938

4.90%,

03/27/28

.................

62

62,558

PPG

Industries,

Inc.,

1.20%,

03/15/26

....

45

41,594

Scotts

Miracle-Gro

Co.

(The)

4.50%,

10/15/29

.................

3

2,666

4.00%,

04/01/31

.................

10

8,484

4.38%,

02/01/32

.................

26

21,970

Sherwin-Williams

Co.

(The)

4.25%,

08/08/25

.................

116

114,808

3.95%,

01/15/26

.................

29

28,433

3.45%,

06/01/27

.................

99

95,560

2.30%,

05/15/30

.................

22

19,079

SK

Invictus

Intermediate

II

SARL,

5.00%,

10/30/29

(b)

....................

73

63,328

WR

Grace

Holdings

LLC

(b)

4.88%,

06/15/27

.................

10

9,621

5.63%,

08/15/29

.................

210

184,791

7.38%,

03/01/31

.................

27

27,008

2,101,560

Commercial

Services

&

Supplies

—

0.3%

ADT

Security

Corp.

(The),

4.88%,

07/15/32

(b)

40

37,000

Allied

Universal

Holdco

LLC

(b)

9.75%,

07/15/27

.................

12

11,758

4.63%,

06/01/28

.................

407

370,955

6.00%,

06/01/29

.................

200

163,059

APi

Group

DE,

Inc.

(b)

4.13%,

07/15/29

.................

22

20,019

4.75%,

10/15/29

.................

17

15,968

APX

Group,

Inc.

(b)

6.75%,

02/15/27

.................

33

32,918

5.75%,

07/15/29

.................

53

49,409

Aramark

Services,

Inc.,

5.00%,

02/01/28

(b)

..

70

67,903

Clean

Harbors,

Inc.

(b)

4.88%,

07/15/27

.................

28

27,437

6.38%,

02/01/31

.................

20

20,321

Covanta

Holding

Corp.,

4.88%,

12/01/29

(b)

.

67

58,537

Garda

World

Security

Corp.

(b)

4.63%,

02/15/27

.................

65

62,672

9.50%,

11/01/27

.................

17

17,139

7.75%,

02/15/28

.................

72

74,492

6.00%,

06/01/29

.................

3

2,689

GFL

Environmental,

Inc.

(b)

4.25%,

06/01/25

.................

21

20,690

3.75%,

08/01/25

.................

26

25,392

5.13%,

12/15/26

.................

24

23,746

3.50%,

09/01/28

.................

37

34,190

4.75%,

06/15/29

.................

94

88,544

4.38%,

08/15/29

.................

65

59,987

6.75%,

01/15/31

.................

91

93,756

Legends

Hospitality

Holding

Co.

LLC,

5.00%,

02/01/26

(b)

....................

27

26,959

Neptune

Bidco

US,

Inc.,

9.29%,

04/15/29

(b)

.

56

52,220

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

Prime

Security

Services

Borrower

LLC

(b)

5.25%,

04/15/24

.................

USD

4

$

3,966

5.75%,

04/15/26

.................

22

22,119

6.25%,

01/15/28

.................

66

65,615

Republic

Services,

Inc.

4.88%,

04/01/29

.................

280

285,222

5.00%,

12/15/33

.................

285

290,991

Waste

Management,

Inc.,

2.00%,

06/01/29

.

191

169,993

Waste

Pro

USA,

Inc.,

5.50%,

02/15/26

(b)

...

174

167,475

Williams

Scotsman,

Inc.

(b)

6.13%,

06/15/25

.................

26

26,051

7.38%,

10/01/31

.................

42

44,048

2,533,240

Communications

Equipment

—

0.0%

CommScope

Technologies

LLC,

6.00%,

06/15/25

(b)

....................

3

2,445

CommScope,

Inc.

(b)

6.00%,

03/01/26

.................

26

23,178

4.75%,

09/01/29

.................

34

22,828

Motorola

Solutions,

Inc.

4.60%,

05/23/29

.................

63

62,509

2.75%,

05/24/31

.................

39

33,333

Viasat,

Inc.

(b)

5.63%,

09/15/25

.................

77

75,078

5.63%,

04/15/27

.................

64

61,920

7.50%,

05/30/31

.................

8

6,280

Viavi

Solutions,

Inc.,

3.75%,

10/01/29

(b)

...

32

28,014

315,585

Construction

&

Engineering

—

0.0%

(b)

Arcosa,

Inc.,

4.38%,

04/15/29

.........

67

62,403

Brand

Industrial

Services,

Inc.,

10.38%,

08/01/30

.....................

210

222,081

Dycom

Industries,

Inc.,

4.50%,

04/15/29

...

35

32,477

Pike

Corp.,

8.63%,

01/31/31

..........

12

12,610

329,571

Construction

Materials

—

0.0%

Smyrna

Ready

Mix

Concrete

LLC

(b)

6.00%,

11/01/28

.................

103

101,412

8.88%,

11/15/31

.................

94

98,810

200,222

Consumer

Finance

—

1.1%

Ally

Financial,

Inc.

5.80%,

05/01/25

.................

228

228,197

5.75%,

11/20/25

.................

343

340,863

(1-day

SOFR

+

2.82%),

6.85%,

01/03/30

(a)

255

261,986

American

Express

Co.,

2.55%,

03/04/27

...

193

180,806

Bread

Financial

Holdings,

Inc.,

9.75%,

03/15/29

(b)

....................

19

19,697

Capital

One

Financial

Corp.

3.75%,

04/24/24

.................

230

228,415

4.25%,

04/30/25

.................

185

182,195

(1-day

SOFR

+

1.37%),

4.17%,

05/09/25

(a)

215

213,377

(1-day

SOFR

+

1.29%),

2.64%,

03/03/26

(a)

62

59,408

(1-day

SOFR

+

0.86%),

1.88%,

11/02/27

(a)

35

31,481

3.80%,

01/31/28

.................

160

151,928

(1-day

SOFR

+

2.08%),

5.47%,

02/01/29

(a)

225

224,335

(1-day

SOFR

+

2.64%),

6.31%,

06/08/29

(a)

1,194

1,224,936

(1-day

SOFR

+

3.07%),

7.62%,

10/30/31

(a)

261

286,809

(1-day

SOFR

+

1.34%),

2.36%,

07/29/32

(a)

37

28,032

(1-day

SOFR

+

1.27%),

2.62%,

11/02/32

(a)

25

19,999

(1-day

SOFR

+

2.60%),

5.82%,

02/01/34

(a)

36

35,825

(1-day

SOFR

+

2.86%),

6.38%,

06/08/34

(a)

65

66,898

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

18

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Consumer

Finance

(continued)

Ford

Motor

Credit

Co.

LLC

3.38%,

11/13/25

.................

USD

455

$

435,395

4.13%,

08/17/27

.................

200

189,337

7.35%,

11/04/27

.................

200

210,910

6.80%,

05/12/28

.................

551

575,492

5.11%,

05/03/29

.................

200

194,485

7.35%,

03/06/30

.................

200

214,860

7.12%,

11/07/33

.................

200

215,487

General

Motors

Financial

Co.,

Inc.

1.25%,

01/08/26

.................

40

37,009

5.40%,

04/06/26

.................

607

610,848

4.35%,

01/17/27

.................

196

192,073

Global

Aircraft

Leasing

Co.

Ltd.,

6.50%,

(6.50%

Cash

or

7.25%

PIK),

09/15/24

(b)(j)

......

38

35,524

Macquarie

Airfinance

Holdings

Ltd.

(b)

8.38%,

05/01/28

.................

14

14,663

8.13%,

03/30/29

.................

24

25,085

Navient

Corp.

5.50%,

03/15/29

.................

5

4,611

9.38%,

07/25/30

.................

35

36,668

OneMain

Finance

Corp.

6.88%,

03/15/25

.................

10

10,123

7.13%,

03/15/26

.................

38

38,714

6.63%,

01/15/28

.................

27

27,257

9.00%,

01/15/29

.................

62

65,548

5.38%,

11/15/29

.................

35

32,774

7.88%,

03/15/30

.................

52

53,527

4.00%,

09/15/30

.................

46

39,365

SLM

Corp.,

3.13%,

11/02/26

..........

44

41,027

Synchrony

Financial

4.25%,

08/15/24

.................

200

197,800

4.88%,

06/13/25

.................

3

2,949

4.50%,

07/23/25

.................

72

70,333

Toyota

Motor

Credit

Corp.

5.00%,

08/14/26

.................

279

282,339

5.40%,

11/20/26

.................

366

374,613

5.25%,

09/11/28

.................

146

151,177

1.65%,

01/10/31

.................

31

25,751

8,190,931

Consumer

Staples

Distribution

&

Retail

—

0.1%

7-Eleven,

Inc.,

0.95%,

02/10/26

(b)

.......

382

353,055

Albertsons

Cos.,

Inc.

(b)

3.25%,

03/15/26

.................

53

50,006

4.63%,

01/15/27

.................

4

3,889

5.88%,

02/15/28

.................

16

16,010

6.50%,

02/15/28

.................

20

20,239

3.50%,

03/15/29

.................

47

42,675

4.88%,

02/15/30

.................

36

34,464

Performance

Food

Group,

Inc.,

4.25%,

08/01/29

(b)

....................

53

48,611

United

Natural

Foods,

Inc.,

6.75%,

10/15/28

(b)

28

22,667

US

Foods,

Inc.

(b)

4.75%,

02/15/29

.................

25

23,744

4.63%,

06/01/30

.................

37

34,482

7.25%,

01/15/32

.................

32

33,367

Walgreens

Boots

Alliance,

Inc.

3.20%,

04/15/30

.................

4

3,521

4.80%,

11/18/44

.................

12

9,998

4.10%,

04/15/50

.................

20

14,524

711,252

Containers

&

Packaging

—

0.3%

Ardagh

Metal

Packaging

Finance

USA

LLC

(b)

6.00%,

06/15/27

.................

200

199,284

4.00%,

09/01/29

.................

200

169,295

Security

Par

(000)

Par

(000)

Value

Containers

&

Packaging

(continued)

Ball

Corp.,

6.00%,

06/15/29

..........

USD

25

$

25,529

Berry

Global,

Inc.,

1.57%,

01/15/26

......

736

683,741

Clydesdale

Acquisition

Holdings,

Inc.

(b)

6.63%,

04/15/29

.................

45

44,260

8.75%,

04/15/30

.................

122

113,749

Graham

Packaging

Co.,

Inc.,

7.13%,

08/15/28

(b)

10

9,000

Graphic

Packaging

International

LLC

(b)

4.75%,

07/15/27

.................

15

14,550

3.50%,

03/15/28

.................

23

21,342

LABL,

Inc.

(b)

5.88%,

11/01/28

.................

40

36,241

9.50%,

11/01/28

.................

61

61,610

Mauser

Packaging

Solutions

Holding

Co.

(b)

7.88%,

08/15/26

.................

441

448,797

9.25%,

04/15/27

.................

8

7,853

Owens-Brockway

Glass

Container,

Inc.

(b)

6.63%,

05/13/27

.................

6

6,001

7.25%,

05/15/31

.................

21

21,291

Sealed

Air

Corp.

(b)

6.13%,

02/01/28

.................

30

30,259

5.00%,

04/15/29

.................

7

6,769

Sonoco

Products

Co.,

2.25%,

02/01/27

...

135

124,325

Trident

TPI

Holdings,

Inc.,

12.75%,

12/31/28

(b)

15

16,050

WRKCo,

Inc.

3.75%,

03/15/25

.................

54

52,977

4.65%,

03/15/26

.................

375

372,414

4.90%,

03/15/29

.................

96

96,525

2,561,862

Distributors

—

0.0%

(b)

American

Builders

&

Contractors

Supply

Co.,

Inc.,

3.88%,

11/15/29

.............

24

21,395

BCPE

Empire

Holdings,

Inc.,

7.63%,

05/01/27

55

53,035

Resideo

Funding,

Inc.,

4.00%,

09/01/29

...

23

20,068

Ritchie

Bros

Holdings,

Inc.,

6.75%,

03/15/28

11

11,325

105,823

Diversified

Consumer

Services

—

0.1%

Johns

Hopkins

University,

Series

A,

4.71%,

07/01/32

.....................

9

9,192

Metis

Merger

Sub

LLC,

6.50%,

05/15/29

(b)

..

29

26,225

Service

Corp.

International,

4.00%,

05/15/31

122

109,251

Sotheby's,

7.38%,

10/15/27

(b)

..........

355

342,361

487,029

Diversified

REITs

—

0.5%

ERP

Operating

LP

4.15%,

12/01/28

.................

159

156,070

1.85%,

08/01/31

.................

162

132,865

Global

Net

Lease,

Inc.,

3.75%,

12/15/27

(b)

..

28

23,397

HAT

Holdings

I

LLC

(b)

3.38%,

06/15/26

.................

46

43,234

8.00%,

06/15/27

.................

15

15,620

Highwoods

Realty

LP,

7.65%,

02/01/34

...

115

124,062

Invitation

Homes

Operating

Partnership

LP

5.50%,

08/15/33

.................

21

21,026

2.70%,

01/15/34

.................

297

238,733

Iron

Mountain

Information

Management

Services,

Inc.,

5.00%,

07/15/32

(b)

......

42

38,471

Mid-America

Apartments

LP,

3.60%,

06/01/27

89

86,017

MPT

Operating

Partnership

LP

4.63%,

08/01/29

.................

3

2,157

3.50%,

03/15/31

.................

172

107,539

Prologis

LP

4.88%,

06/15/28

.................

360

364,583

2.88%,

11/15/29

.................

45

40,850

5.13%,

01/15/34

.................

469

484,037

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

19

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Diversified

REITs

(continued)

Simon

Property

Group

LP

3.30%,

01/15/26

.................

USD

123

$

119,158

5.50%,

03/08/33

.................

128

132,259

VICI

Properties

LP

5.63%,

05/01/24

(b)

................

300

299,024

4.38%,

05/15/25

.................

30

29,482

4.63%,

06/15/25

(b)

................

12

11,787

4.75%,

02/15/28

.................

200

195,792

4.95%,

02/15/30

.................

78

75,685

4.13%,

08/15/30

(b)

................

210

191,294

5.13%,

05/15/32

.................

510

497,150

5.63%,

05/15/52

.................

42

40,270

3,470,562

Diversified

Telecommunication

Services

—

0.6%

Altice

France

SA,

5.13%,

07/15/29

(b)

.....

200

155,604

CCO

Holdings

LLC

(b)

5.00%,

02/01/28

.................

34

32,531

6.38%,

09/01/29

.................

113

111,436

4.75%,

03/01/30

.................

28

25,585

7.38%,

03/01/31

.................

299

306,883

4.75%,

02/01/32

.................

80

70,557

4.25%,

01/15/34

.................

88

71,511

Frontier

Communications

Holdings

LLC

(b)

5.88%,

10/15/27

.................

81

78,254

5.00%,

05/01/28

.................

86

79,479

8.75%,

05/15/30

.................

173

177,967

8.63%,

03/15/31

.................

15

15,294

Iliad

Holding

SASU,

7.00%,

10/15/28

(b)

....

200

199,018

Level

3

Financing,

Inc.

(b)

3.40%,

03/01/27

.................

113

108,480

4.63%,

09/15/27

.................

124

74,400

3.63%,

01/15/29

.................

10

5,100

11.00%,

11/15/29

(k)

...............

98

97,903

10.50%,

05/15/30

................

106

102,787

Lumen

Technologies,

Inc.,

4.00%,

02/15/27

(b)

49

31,623

Sprint

Capital

Corp.,

6.88%,

11/15/28

.....

562

608,944

Telecom

Italia

Capital

SA

6.38%,

11/15/33

.................

5

4,891

6.00%,

09/30/34

.................

41

38,937

7.20%,

07/18/36

.................

50

50,191

7.72%,

06/04/38

.................

18

18,330

Uniti

Group

LP,

10.50%,

02/15/28

(b)

......

119

120,643

Verizon

Communications,

Inc.

3.00%,

03/22/27

.................

15

14,261

2.10%,

03/22/28

.................

614

555,427

4.02%,

12/03/29

.................

512

495,047

1.75%,

01/20/31

.................

116

95,408

4.40%,

11/01/34

.................

14

13,469

Zayo

Group

Holdings,

Inc.

(b)

4.00%,

03/01/27

.................

319

255,766

6.13%,

03/01/28

.................

89

65,367

4,081,093

Electric

Utilities

—

1.8%

Alexander

Funding

Trust

II,

7.47%,

07/31/28

(b)

100

105,004

American

Electric

Power

Co.,

Inc.,

5.70%,

08/15/25

.....................

412

414,705

CenterPoint

Energy

Houston

Electric

LLC

Series

AG,

3.00%,

03/01/32

.........

100

88,502

4.95%,

04/01/33

.................

68

69,220

Duke

Energy

Carolinas

LLC

2.85%,

03/15/32

.................

115

100,241

4.95%,

01/15/33

.................

77

78,426

Duke

Energy

Corp.

2.65%,

09/01/26

.................

860

816,048

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

2.55%,

06/15/31

.................

USD

123

$

104,949

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

2.32%),

3.25%,

01/15/82

(a)

...................

335

259,037

Duke

Energy

Florida

LLC

3.20%,

01/15/27

.................

6

5,795

2.50%,

12/01/29

.................

88

78,459

1.75%,

06/15/30

.................

154

128,454

Duke

Energy

Ohio,

Inc.

2.13%,

06/01/30

.................

16

13,609

5.25%,

04/01/33

.................

13

13,393

Edison

International

4.70%,

08/15/25

.................

390

385,168

5.75%,

06/15/27

.................

100

102,110

5.25%,

11/15/28

.................

260

261,598

6.95%,

11/15/29

.................

68

73,795

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.86%),

8.13%,

06/15/53

(a)

...................

75

76,563

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.66%),

7.88%,

06/15/54

(a)

...................

139

140,042

Eversource

Energy

4.75%,

05/15/26

.................

9

8,952

5.45%,

03/01/28

.................

220

226,119

Exelon

Corp.

2.75%,

03/15/27

.................

40

37,671

5.15%,

03/15/28

.................

200

203,287

FirstEnergy

Corp.

Series

B,

4.15%,

07/15/27

(l)

.........

185

177,934

2.65%,

03/01/30

.................

217

187,473

Florida

Power

&

Light

Co.,

4.80%,

05/15/33

.

129

130,446

Georgia

Power

Co.,

4.70%,

05/15/32

.....

174

173,282

MidAmerican

Energy

Co.,

5.75%,

11/01/35

.

21

22,402

NextEra

Energy

Capital

Holdings,

Inc.

5.75%,

09/01/25

.................

280

282,649

1.88%,

01/15/27

.................

20

18,393

3.55%,

05/01/27

.................

300

288,904

4.63%,

07/15/27

.................

25

24,955

5.05%,

02/28/33

.................

110

110,205

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

2.55%),

3.80%,

03/15/82

(a)

...................

1,032

874,127

NextEra

Energy

Operating

Partners

LP

(b)

4.25%,

09/15/24

.................

4

3,870

3.88%,

10/15/26

.................

8

7,617

7.25%,

01/15/29

.................

23

24,079

Northern

States

Power

Co.,

2.25%,

04/01/31

10

8,577

NRG

Energy,

Inc.

(b)

2.45%,

12/02/27

.................

173

155,974

7.00%,

03/15/33

.................

30

31,709

Ohio

Power

Co.

5.00%,

06/01/33

.................

177

178,004

Series

F,

5.85%,

10/01/35

..........

9

9,349

Oncor

Electric

Delivery

Co.

LLC

4.30%,

05/15/28

(b)

................

109

107,649

3.70%,

11/15/28

.................

457

440,529

5.75%,

03/15/29

.................

6

6,333

2.75%,

05/15/30

.................

12

10,734

5.65%,

11/15/33

(b)

................

79

84,160

Pacific

Gas

&

Electric

Co.

3.40%,

08/15/24

.................

190

186,827

3.45%,

07/01/25

.................

14

13,549

3.15%,

01/01/26

.................

350

335,711

3.30%,

12/01/27

.................

140

130,665

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

20

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

3.30%,

12/01/27

.................

USD

10

$

9,333

3.00%,

06/15/28

.................

150

136,703

6.10%,

01/15/29

.................

512

529,816

4.55%,

07/01/30

.................

707

673,331

6.95%,

03/15/34

.................

65

71,396

PacifiCorp,

2.70%,

09/15/30

..........

31

26,862

Pattern

Energy

Operations

LP,

4.50%,

08/15/28

(b)

....................

71

67,156

PECO

Energy

Co.,

4.90%,

06/15/33

.....

99

100,646

PG&E

Corp.,

4.25%,

12/01/27

(b)(m)

.......

118

123,664

Public

Service

Electric

&

Gas

Co.

4.90%,

12/15/32

.................

395

400,726

4.65%,

03/15/33

.................

57

57,006

5.20%,

08/01/33

.................

56

58,118

Southern

California

Edison

Co.

Series

20C,

1.20%,

02/01/26

........

154

143,382

Series

G,

2.50%,

06/01/31

..........

337

288,551

6.00%,

01/15/34

.................

277

303,727

Southern

Co.

(The)

Series

21-B,

1.75%,

03/15/28

........

150

133,374

4.85%,

06/15/28

.................

114

114,839

5.20%,

06/15/33

.................

258

263,175

Tampa

Electric

Co.,

2.40%,

03/15/31

.....

9

7,590

Virginia

Electric

&

Power

Co.

Series

B,

3.75%,

05/15/27

..........

111

108,374

Series

A,

3.80%,

04/01/28

..........

90

87,279

2.30%,

11/15/31

.................

67

56,273

Vistra

Operations

Co.

LLC

(b)

3.55%,

07/15/24

.................

663

653,673

5.13%,

05/13/25

.................

723

715,969

5.50%,

09/01/26

.................

15

14,810

5.00%,

07/31/27

.................

7

6,815

7.75%,

10/15/31

.................

66

68,547

6.95%,

10/15/33

.................

35

36,835

13,075,223

Electrical

Equipment

—

0.0%

(b)

Regal

Rexnord

Corp.

6.05%,

04/15/28

.................

41

41,503

6.30%,

02/15/30

.................

45

46,166

6.40%,

04/15/33

.................

29

30,226

Vertiv

Group

Corp.,

4.13%,

11/15/28

.....

102

95,699

213,594

Electronic

Equipment,

Instruments

&

Components

—

0.0%

(b)

Coherent

Corp.,

5.00%,

12/15/29

.......

61

57,935

Sensata

Technologies,

Inc.

4.38%,

02/15/30

.................

102

94,601

3.75%,

02/15/31

.................

29

25,541

178,077

Energy

Equipment

&

Services

—

0.3%

Archrock

Partners

LP

(b)

6.88%,

04/01/27

.................

105

105,262

6.25%,

04/01/28

.................

64

63,040

Borr

IHC

Ltd.,

10.00%,

11/15/28

(b)

.......

200

209,006

Enerflex

Ltd.,

9.00%,

10/15/27

(b)

........

46

44,374

Halliburton

Co.,

2.92%,

03/01/30

.......

28

25,180

Nabors

Industries

Ltd.

(b)

7.25%,

01/15/26

.................

27

25,953

7.50%,

01/15/28

.................

55

47,561

Nabors

Industries,

Inc.

5.75%,

02/01/25

.................

127

126,958

9.13%,

01/31/30

(b)

................

37

37,150

Noble

Finance

II

LLC,

8.00%,

04/15/30

(b)

..

41

42,663

Oceaneering

International,

Inc.,

6.00%,

02/01/28

(b)

....................

10

9,693

Security

Par

(000)

Par

(000)

Value

Energy

Equipment

&

Services

(continued)

Patterson-UTI

Energy,

Inc.,

7.15%,

10/01/33

USD

15

$

15,891

Precision

Drilling

Corp.,

6.88%,

01/15/29

(b)

.

11

10,608

Tervita

Corp.,

11.00%,

12/01/25

(b)

.......

14

14,700

Transocean

Aquila

Ltd.,

8.00%,

09/30/28

(b)

.

18

18,269

Transocean

Titan

Financing

Ltd.,

8.38%,

02/01/28

(b)

....................

17

17,637

Transocean,

Inc.

(b)

7.50%,

01/15/26

.................

68

66,807

11.50%,

01/30/27

................

73

76,285

8.00%,

02/01/27

.................

44

42,900

8.75%,

02/15/30

.................

151

157,811

USA

Compression

Partners

LP

6.88%,

04/01/26

.................

63

62,734

6.88%,

09/01/27

.................

60

59,289

Valaris

Ltd.,

8.38%,

04/30/30

(b)

.........

104

106,552

Venture

Global

LNG,

Inc.

(b)

8.13%,

06/01/28

.................

109

110,079

9.50%,

02/01/29

.................

308

325,916

8.38%,

06/01/31

.................

195

194,899

9.88%,

02/01/32

.................

146

152,079

Weatherford

International

Ltd.

(b)

6.50%,

09/15/28

.................

24

24,835

8.63%,

04/30/30

.................

130

135,728

2,329,859

Entertainment

—

0.1%

(b)

Lions

Gate

Capital

Holdings

LLC,

5.50%,

04/15/29

.....................

39

29,176

Live

Nation

Entertainment,

Inc.

4.88%,

11/01/24

.................

9

8,919

5.63%,

03/15/26

.................

9

8,917

6.50%,

05/15/27

.................

159

161,786

4.75%,

10/15/27

.................

74

70,954

Netflix,

Inc.,

4.88%,

06/15/30

..........

118

119,481

Playtika

Holding

Corp.,

4.25%,

03/15/29

...

30

26,177

425,410

Financial

Services

—

0.5%

Block,

Inc.

2.75%,

06/01/26

.................

94

88,645

3.50%,

06/01/31

.................

197

174,926

Enact

Holdings,

Inc.,

6.50%,

08/15/25

(b)

...

27

26,916

Fidelity

National

Information

Services,

Inc.

1.15%,

03/01/26

.................

286

264,252

4.70%,

07/15/27

.................

167

166,988

Fiserv,

Inc.

2.75%,

07/01/24

.................

523

515,174

3.85%,

06/01/25

.................

60

58,863

3.20%,

07/01/26

.................

40

38,504

2.25%,

06/01/27

.................

147

135,932

Freedom

Mortgage

Corp.

(b)

12.00%,

10/01/28

................

13

14,197

12.25%,

10/01/30

................

13

14,271

GGAM

Finance

Ltd.

(b)

7.75%,

05/15/26

.................

6

6,090

8.00%,

02/15/27

.................

60

61,503

8.00%,

06/15/28

.................

14

14,484

Global

Payments,

Inc.

1.20%,

03/01/26

.................

230

211,302

4.80%,

04/01/26

.................

67

66,416

2.15%,

01/15/27

.................

37

34,062

2.90%,

11/15/31

.................

65

55,600

JPMorgan

Chase

Bank

NA,

5.11%,

12/08/26

658

663,904

Mastercard,

Inc.,

2.00%,

11/18/31

.......

56

47,232

MGIC

Investment

Corp.,

5.25%,

08/15/28

..

31

30,176

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

21

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Financial

Services

(continued)

Nationstar

Mortgage

Holdings,

Inc.

(b)

5.00%,

02/01/26

.................

USD

192

$

187,768

6.00%,

01/15/27

.................

18

17,865

5.13%,

12/15/30

.................

39

35,261

5.75%,

11/15/31

.................

26

24,243

NCR

Atleos

Escrow

Corp.,

9.50%,

04/01/29

(b)

34

36,125

PennyMac

Financial

Services,

Inc.,

7.88%,

12/15/29

(b)

....................

38

39,116

Permian

Resources

Operating

LLC

(b)

5.38%,

01/15/26

.................

10

9,867

7.75%,

02/15/26

.................

65

66,126

6.88%,

04/01/27

.................

17

16,988

8.00%,

04/15/27

.................

37

38,353

5.88%,

07/01/29

.................

111

108,221

9.88%,

07/15/31

.................

42

46,673

7.00%,

01/15/32

.................

45

46,425

Rocket

Mortgage

LLC

(b)

2.88%,

10/15/26

.................

140

129,150

3.88%,

03/01/31

.................

33

29,024

4.00%,

10/15/33

.................

8

6,796

Shift4

Payments

LLC,

4.63%,

11/01/26

(b)

...

93

90,434

Shift4

Payments,

Inc.,

0.00%,

12/15/25

(m)(n)

.

7

7,766

Verscend

Escrow

Corp.,

9.75%,

08/15/26

(b)

.

315

317,214

3,942,852

Food

Products

—

0.3%

B&G

Foods,

Inc.,

8.00%,

09/15/28

(b)

.....

15

15,751

Chobani

LLC

(b)

7.50%,

04/15/25

.................

169

168,155

4.63%,

11/15/28

.................

147

137,417

Darling

Ingredients,

Inc.,

6.00%,

06/15/30

(b)

.

84

84,062

J

M

Smucker

Co.

(The)

5.90%,

11/15/28

.................

393

413,204

6.20%,

11/15/33

.................

140

152,696

4.25%,

03/15/35

.................

15

13,941

Kraft

Heinz

Foods

Co.,

3.88%,

05/15/27

...

857

840,564

Lamb

Weston

Holdings,

Inc.

(b)

4.88%,

05/15/28

.................

88

86,064

4.13%,

01/31/30

.................

12

11,063

4.38%,

01/31/32

.................

46

41,964

Post

Holdings,

Inc.

(b)

5.50%,

12/15/29

.................

9

8,672

4.50%,

09/15/31

.................

9

8,065

Simmons

Foods,

Inc.,

4.63%,

03/01/29

(b)

..

32

27,686

2,009,304

Gas

Utilities

—

0.2%

AmeriGas

Partners

LP,

9.38%,

06/01/28

(b)

..

39

40,274

Atmos

Energy

Corp.

1.50%,

01/15/31

.................

35

28,458

5.90%,

11/15/33

.................

22

23,868

CenterPoint

Energy

Resources

Corp.,

5.25%,

03/01/28

.....................

18

18,458

DCP

Midstream

Operating

LP

5.63%,

07/15/27

.................

250

256,148

3.25%,

02/15/32

.................

641

555,819

Howard

Midstream

Energy

Partners

LLC,

8.88%,

07/15/28

(b)

...............

35

36,735

ONE

Gas,

Inc.

1.10%,

03/11/24

.................

129

127,856

2.00%,

05/15/30

.................

9

7,633

4.25%,

09/01/32

.................

9

8,631

Southern

California

Gas

Co.,

2.95%,

04/15/27

96

91,051

Suburban

Propane

Partners

LP,

5.00%,

06/01/31

(b)

....................

6

5,440

1,200,371

Security

Par

(000)

Par

(000)

Value

Ground

Transportation

—

0.5%

Avis

Budget

Car

Rental

LLC,

8.00%,

02/15/31

(b)

USD

32

$

31,956

Burlington

Northern

Santa

Fe

LLC

7.00%,

12/15/25

.................

24

25,063

3.25%,

06/15/27

.................

15

14,457

Canadian

National

Railway

Co.,

3.85%,

08/05/32

.....................

137

130,342

CSX

Corp.

3.25%,

06/01/27

.................

133

128,157

4.25%,

03/15/29

.................

64

63,934

NESCO

Holdings

II,

Inc.,

5.50%,

04/15/29

(b)

.

38

35,134

Norfolk

Southern

Corp.

2.90%,

06/15/26

.................

240

230,345

3.15%,

06/01/27

.................

658

628,565

3.80%,

08/01/28

.................

83

80,811

2.30%,

05/15/31

.................

196

169,109

Penske

Truck

Leasing

Co.

LP

(b)

1.20%,

11/15/25

.................

853

790,850

4.45%,

01/29/26

.................

100

97,710

5.75%,

05/24/26

.................

275

277,178

5.88%,

11/15/27

.................

91

93,010

5.55%,

05/01/28

.................

21

21,322

RXO,

Inc.,

7.50%,

11/15/27

(b)

..........

31

31,988

Ryder

System,

Inc.

2.85%,

03/01/27

.................

135

126,908

6.60%,

12/01/33

.................

114

126,392

SMBC

Aviation

Capital

Finance

DAC,

1.90%,

10/15/26

(b)

....................

200

181,495

Uber

Technologies,

Inc.

0.00%,

12/15/25

(m)(n)

..............

48

48,809

8.00%,

11/01/26

(b)

................

85

86,577

7.50%,

09/15/27

(b)

................

101

104,599

6.25%,

01/15/28

(b)

................

54

54,135

4.50%,

08/15/29

(b)

................

126

120,200

Union

Pacific

Corp.,

2.89%,

04/06/36

.....

66

55,709

3,754,755

Health

Care

Equipment

&

Supplies

—

0.2%

Avantor

Funding,

Inc.

(b)

4.63%,

07/15/28

.................

127

122,743

3.88%,

11/01/29

.................

33

29,968

Bausch

&

Lomb

Escrow

Corp.,

8.38%,

10/01/28

(b)

....................

203

214,153

Baxter

International,

Inc.

1.92%,

02/01/27

.................

37

33,900

2.54%,

02/01/32

.................

132

110,670

Becton

Dickinson

&

Co.

3.73%,

12/15/24

.................

198

194,883

3.70%,

06/06/27

.................

164

158,924

Garden

Spinco

Corp.,

8.63%,

07/20/30

(b)

..

40

42,725

Medline

Borrower

LP

(b)

3.88%,

04/01/29

.................

81

73,236

5.25%,

10/01/29

.................

289

272,404

Medtronic

Global

Holdings

SCA

4.25%,

03/30/28

.................

31

30,865

4.50%,

03/30/33

.................

163

163,053

Teleflex,

Inc.,

4.63%,

11/15/27

.........

28

27,218

1,474,742

Health

Care

Providers

&

Services

—

0.6%

Acadia

Healthcare

Co.,

Inc.,

5.50%,

07/01/28

(b)

13

12,803

AHP

Health

Partners,

Inc.,

5.75%,

07/15/29

(b)

65

56,571

Ascension

Health,

Series

B,

2.53%,

11/15/29

16

14,282

Banner

Health,

1.90%,

01/01/31

........

128

106,107

Centene

Corp.

3.00%,

10/15/30

.................

252

218,243

2.63%,

08/01/31

.................

346

287,084

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

22

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Health

Care

Providers

&

Services

(continued)

CommonSpirit

Health

6.07%,

11/01/27

.................

USD

137

$

141,002

3.35%,

10/01/29

.................

22

20,087

2.78%,

10/01/30

.................

161

139,598

Community

Health

Systems,

Inc.

(b)

5.63%,

03/15/27

.................

37

34,378

6.00%,

01/15/29

.................

138

124,218

5.25%,

05/15/30

.................

82

68,580

4.75%,

02/15/31

.................

65

51,099

Elevance

Health,

Inc.

5.35%,

10/15/25

.................

136

136,950

1.50%,

03/15/26

.................

29

27,048

4.10%,

03/01/28

.................

200

197,068

2.25%,

05/15/30

.................

15

12,987

5.50%,

10/15/32

.................

75

78,426

5.85%,

01/15/36

.................

45

48,062

Encompass

Health

Corp.

4.50%,

02/01/28

.................

7

6,697

4.75%,

02/01/30

.................

27

25,427

4.63%,

04/01/31

.................

48

44,169

HCA,

Inc.

5.38%,

02/01/25

.................

62

61,909

3.13%,

03/15/27

.................

465

440,789

3.50%,

09/01/30

.................

356

322,723

3.63%,

03/15/32

.................

175

156,481

5.50%,

06/01/33

.................

142

144,230

HealthEquity,

Inc.,

4.50%,

10/01/29

(b)

.....

124

115,135

Legacy

LifePoint

Health

LLC,

4.38%,

02/15/27

(b)

....................

16

14,772

LifePoint

Health,

Inc.

(b)

9.88%,

08/15/30

.................

46

46,487

11.00%,

10/15/30

................

70

73,721

ModivCare,

Inc.,

5.88%,

11/15/25

(b)

......

68

67,150

Molina

Healthcare,

Inc.

(b)

4.38%,

06/15/28

.................

21

19,861

3.88%,

11/15/30

.................

56

50,339

Option

Care

Health,

Inc.,

4.38%,

10/31/29

(b)

.

79

71,397

Prime

Healthcare

Services,

Inc.,

7.25%,

11/01/25

(b)

....................

6

5,850

RegionalCare

Hospital

Partners

Holdings,

Inc.,

9.75%,

12/01/26

(b)

...............

12

11,905

Surgery

Center

Holdings,

Inc.

(b)

6.75%,

07/01/25

.................

8

7,970

10.00%,

04/15/27

................

36

36,360

Sutter

Health

Series

2018,

3.70%,

08/15/28

........

30

28,739

Series

20A,

2.29%,

08/15/30

........

77

65,997

5.16%,

08/15/33

.................

40

40,529

Tenet

Healthcare

Corp.

4.88%,

01/01/26

.................

26

25,707

6.25%,

02/01/27

.................

13

13,064

5.13%,

11/01/27

.................

61

59,630

4.63%,

06/15/28

.................

12

11,452

6.13%,

10/01/28

.................

72

71,796

6.13%,

06/15/30

.................

20

20,222

6.75%,

05/15/31

(b)

................

155

158,418

UnitedHealth

Group,

Inc.

4.00%,

05/15/29

.................

89

87,691

2.30%,

05/15/31

.................

90

77,987

4.63%,

07/15/35

.................

129

129,637

5.80%,

03/15/36

.................

96

104,884

4,393,718

Health

Care

REITs

—

0.1%

Healthpeak

OP

LLC

1.35%,

02/01/27

.................

284

254,802

Security

Par

(000)

Par

(000)

Value

Health

Care

REITs

(continued)

2.88%,

01/15/31

.................

USD

14

$

12,151

5.25%,

12/15/32

.................

146

147,590

Ventas

Realty

LP

3.00%,

01/15/30

.................

55

48,551

4.75%,

11/15/30

.................

54

52,321

Welltower

OP

LLC

4.00%,

06/01/25

.................

112

109,980

3.85%,

06/15/32

.................

279

257,975

883,370

Health

Care

Technology

—

0.1%

(b)

AthenaHealth

Group,

Inc.,

6.50%,

02/15/30

.

337

305,719

IQVIA,

Inc.,

6.25%,

02/01/29

..........

63

65,769

371,488

Hotel

&

Resort

REITs

—

0.1%

RHP

Hotel

Properties

LP

4.75%,

10/15/27

.................

124

119,770

7.25%,

07/15/28

(b)

................

46

47,825

4.50%,

02/15/29

(b)

................

20

18,601

RLJ

Lodging

Trust

LP,

3.75%,

07/01/26

(b)

..

30

28,425

Service

Properties

Trust

7.50%,

09/15/25

.................

22

22,244

8.63%,

11/15/31

(b)

................

145

151,878

388,743

Hotels,

Restaurants

&

Leisure

—

0.5%

1011778

BC

ULC

(b)

3.88%,

01/15/28

.................

36

34,010

4.38%,

01/15/28

.................

21

20,057

4.00%,

10/15/30

.................

73

65,473

Booking

Holdings,

Inc.,

4.63%,

04/13/30

...

109

109,816

Boyd

Gaming

Corp.,

4.75%,

06/15/31

(b)

...

64

58,741

Boyne

USA,

Inc.,

4.75%,

05/15/29

(b)

.....

74

69,589

Caesars

Entertainment,

Inc.

(b)

6.25%,

07/01/25

.................

45

45,122

8.13%,

07/01/27

.................

76

77,908

4.63%,

10/15/29

.................

137

123,575

7.00%,

02/15/30

.................

202

207,138

Carnival

Corp.

(b)

7.63%,

03/01/26

.................

49

49,886

5.75%,

03/01/27

.................

114

111,199

4.00%,

08/01/28

.................

34

31,611

6.00%,

05/01/29

.................

108

103,918

7.00%,

08/15/29

.................

23

24,015

Carnival

Holdings

Bermuda

Ltd.,

10.38%,

05/01/28

(b)

....................

398

433,191

CCM

Merger,

Inc.,

6.38%,

05/01/26

(b)

.....

13

12,675

Cedar

Fair

LP

5.50%,

05/01/25

(b)

................

27

26,864

5.38%,

04/15/27

.................

6

5,870

6.50%,

10/01/28

.................

18

17,864

Churchill

Downs,

Inc.

(b)

5.50%,

04/01/27

.................

76

75,203

4.75%,

01/15/28

.................

82

78,588

5.75%,

04/01/30

.................

102

99,449

6.75%,

05/01/31

.................

52

52,777

Expedia

Group,

Inc.,

3.80%,

02/15/28

....

35

33,741

Fertitta

Entertainment

LLC

(b)

4.63%,

01/15/29

.................

64

58,072

6.75%,

01/15/30

.................

26

22,828

GLP

Capital

LP

5.30%,

01/15/29

.................

72

71,584

4.00%,

01/15/30

.................

49

44,711

3.25%,

01/15/32

.................

32

27,016

6.75%,

12/01/33

.................

25

26,971

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

23

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

Hilton

Domestic

Operating

Co.,

Inc.

5.75%,

05/01/28

(b)

................

USD

41

$

41,016

3.75%,

05/01/29

(b)

................

14

12,980

4.88%,

01/15/30

.................

28

27,136

4.00%,

05/01/31

(b)

................

43

39,385

Hilton

Worldwide

Finance

LLC,

4.88%,

04/01/27

.....................

16

15,761

Life

Time,

Inc.,

8.00%,

04/15/26

(b)

.......

49

49,446

Light

&

Wonder

International,

Inc.

(b)

7.25%,

11/15/29

.................

6

6,144

7.50%,

09/01/31

.................

43

44,851

Lindblad

Expeditions

Holdings,

Inc.,

9.00%,

05/15/28

(b)

....................

33

34,121

Lindblad

Expeditions

LLC,

6.75%,

02/15/27

(b)

72

71,640

MajorDrive

Holdings

IV

LLC,

6.38%,

06/01/29

(b)

49

42,195

Midwest

Gaming

Borrower

LLC,

4.88%,

05/01/29

(b)

....................

22

20,460

NCL

Corp.

Ltd.

(b)

5.88%,

03/15/26

.................

25

24,429

8.38%,

02/01/28

.................

3

3,177

8.13%,

01/15/29

.................

17

17,758

7.75%,

02/15/29

.................

37

37,224

NCL

Finance

Ltd.,

6.13%,

03/15/28

(b)

.....

50

47,862

Ontario

Gaming

GTA

LP,

8.00%,

08/01/30

(b)

.

22

22,688

Premier

Entertainment

Sub

LLC

(b)

5.63%,

09/01/29

.................

23

18,400

5.88%,

09/01/31

.................

24

18,720

Raising

Cane's

Restaurants

LLC,

9.38%,

05/01/29

(b)

....................

19

20,277

Raptor

Acquisition

Corp.,

4.88%,

11/01/26

(b)

.

25

23,829

Royal

Caribbean

Cruises

Ltd.

(b)

4.25%,

07/01/26

.................

20

19,317

5.50%,

08/31/26

.................

39

38,616

5.38%,

07/15/27

.................

4

3,960

11.63%,

08/15/27

................

6

6,529

5.50%,

04/01/28

.................

7

6,911

8.25%,

01/15/29

.................

47

49,794

9.25%,

01/15/29

.................

21

22,588

7.25%,

01/15/30

.................

38

39,686

Scientific

Games

Holdings

LP,

6.63%,

03/01/30

(b)

....................

26

24,581

Six

Flags

Entertainment

Corp.,

7.25%,

05/15/31

(b)

....................

137

137,422

Station

Casinos

LLC

(b)

4.50%,

02/15/28

.................

5

4,714

4.63%,

12/01/31

.................

73

65,822

Vail

Resorts,

Inc.,

6.25%,

05/15/25

(b)

.....

10

9,950

Viking

Cruises

Ltd.

(b)

5.88%,

09/15/27

.................

29

27,985

7.00%,

02/15/29

.................

7

6,940

9.13%,

07/15/31

.................

113

120,412

Viking

Ocean

Cruises

Ship

VII

Ltd.,

5.63%,

02/15/29

(b)

....................

35

34,125

Wyndham

Hotels

&

Resorts,

Inc.,

4.38%,

08/15/28

(b)

....................

28

26,184

Wynn

Las

Vegas

LLC,

5.25%,

05/15/27

(b)

..

56

54,494

Wynn

Macau

Ltd.,

5.63%,

08/26/28

(b)

.....

200

184,812

Wynn

Resorts

Finance

LLC

(b)

5.13%,

10/01/29

.................

98

92,491

7.13%,

02/15/31

.................

55

57,278

Yum!

Brands,

Inc.,

4.75%,

01/15/30

(b)

.....

22

21,325

3,914,897

Household

Durables

—

0.1%

Ashton

Woods

USA

LLC

(b)

6.63%,

01/15/28

.................

11

10,675

Security

Par

(000)

Par

(000)

Value

Household

Durables

(continued)

4.63%,

08/01/29

.................

USD

13

$

11,560

4.63%,

04/01/30

.................

35

31,353

Brookfield

Residential

Properties,

Inc.

(b)

5.00%,

06/15/29

.................

28

24,854

4.88%,

02/15/30

.................

26

22,865

CD&R

Smokey

Buyer,

Inc.,

6.75%,

07/15/25

(b)

35

34,627

Dream

Finders

Homes,

Inc.,

8.25%,

08/15/28

(b)

16

16,909

Installed

Building

Products,

Inc.,

5.75%,

02/01/28

(b)

....................

21

20,370

KB

Home,

7.25%,

07/15/30

...........

27

27,948

LGI

Homes,

Inc.,

8.75%,

12/15/28

(b)

......

17

18,084

Mattamy

Group

Corp.

(b)

5.25%,

12/15/27

.................

6

5,833

4.63%,

03/01/30

.................

20

18,535

SWF

Escrow

Issuer

Corp.,

6.50%,

10/01/29

(b)

23

16,531

Taylor

Morrison

Communities,

Inc.

(b)

5.88%,

06/15/27

.................

42

42,210

5.13%,

08/01/30

.................

11

10,641

Tempur

Sealy

International,

Inc.,

4.00%,

04/15/29

(b)

....................

44

39,741

TRI

Pointe

Homes,

Inc.

5.25%,

06/01/27

.................

19

18,668

5.70%,

06/15/28

.................

14

13,807

385,211

Household

Products

—

0.0%

Central

Garden

&

Pet

Co.

5.13%,

02/01/28

.................

2

1,943

4.13%,

10/15/30

.................

23

20,920

Spectrum

Brands,

Inc.

(b)

5.00%,

10/01/29

.................

22

20,990

5.50%,

07/15/30

.................

21

20,378

64,231

Independent

Power

and

Renewable

Electricity

Producers

—

0.1%

AES

Corp.

(The)

1.38%,

01/15/26

.................

385

356,232

2.45%,

01/15/31

.................

146

122,646

Calpine

Corp.

(b)

5.13%,

03/15/28

.................

71

68,073

5.00%,

02/01/31

.................

6

5,501

Clearway

Energy

Operating

LLC,

4.75%,

03/15/28

(b)

....................

67

64,549

NextEra

Energy

Partners

LP

(b)(m)

0.00%,

11/15/25

(n)

................

27

23,584

2.50%,

06/15/26

.................

27

24,192

Talen

Energy

Supply

LLC,

8.63%,

06/01/30

(b)

18

19,126

TransAlta

Corp.,

7.75%,

11/15/29

.......

29

30,800

714,703

Industrial

Conglomerates

—

0.1%

Emerald

Debt

Merger

Sub

LLC,

6.63%,

12/15/30

(b)

....................

417

425,911

Insurance

—

0.3%

Acrisure

LLC,

6.00%,

08/01/29

(b)

........

25

22,716

Alliant

Holdings

Intermediate

LLC

(b)

4.25%,

10/15/27

.................

181

173,950

6.75%,

10/15/27

.................

159

158,438

6.75%,

04/15/28

.................

83

84,911

5.88%,

11/01/29

.................

312

295,618

7.00%,

01/15/31

.................

68

71,731

Allstate

Corp.

(The),

3.28%,

12/15/26

....

148

142,719

AmWINS

Group,

Inc.,

4.88%,

06/30/29

(b)

...

74

67,579

Aon

Corp.

2.85%,

05/28/27

.................

251

237,109

2.60%,

12/02/31

.................

77

65,292

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

24

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Insurance

(continued)

5.35%,

02/28/33

.................

USD

116

$

118,964

GTCR

AP

Finance,

Inc.,

8.00%,

05/15/27

(b)

.

24

24,241

HUB

International

Ltd.

(b)

7.00%,

05/01/26

.................

66

66,255

7.25%,

06/15/30

.................

240

253,495

Jones

Deslauriers

Insurance

Management,

Inc.

(b)

8.50%,

03/15/30

.................

73

76,660

10.50%,

12/15/30

................

41

43,210

Marsh

&

McLennan

Cos.,

Inc.

2.25%,

11/15/30

.................

101

86,937

2.38%,

12/15/31

.................

22

18,740

NFP

Corp.

(b)

4.88%,

08/15/28

.................

52

51,462

6.88%,

08/15/28

.................

252

256,183

7.50%,

10/01/30

.................

42

44,701

8.50%,

10/01/31

.................

26

28,181

Ryan

Specialty

LLC,

4.38%,

02/01/30

(b)

...

36

33,390

USI,

Inc.,

7.50%,

01/15/32

(b)

..........

63

64,499

2,486,981

Interactive

Media

&

Services

—

0.0%

Meta

Platforms,

Inc.

4.60%,

05/15/28

.................

172

174,509

4.95%,

05/15/33

.................

112

115,597

290,106

IT

Services

—

0.2%

Acuris

Finance

US,

Inc.,

5.00%,

05/01/28

(b)

.

200

163,000

Ahead

DB

Holdings

LLC,

6.63%,

05/01/28

(b)

36

31,365

Arches

Buyer,

Inc.,

4.25%,

06/01/28

(b)

....

14

12,679

Booz

Allen

Hamilton,

Inc.,

4.00%,

07/01/29

(b)

6

5,623

CA

Magnum

Holdings,

5.38%,

10/31/26

(b)

..

201

186,930

Cablevision

Lightpath

LLC,

5.63%,

09/15/28

(b)

200

157,622

Central

Parent

LLC,

8.00%,

06/15/29

(b)

....

61

63,669

Gartner,

Inc.

(b)

4.50%,

07/01/28

.................

32

30,347

3.75%,

10/01/30

.................

20

17,679

GTCR

W-2

Merger

Sub

LLC,

7.50%,

01/15/31

(b)

221

233,536

Newfold

Digital

Holdings

Group,

Inc.,

11.75%,

10/15/28

(b)

....................

16

17,212

Northwest

Fiber

LLC,

4.75%,

04/30/27

(b)

...

71

67,805

Presidio

Holdings,

Inc.,

4.88%,

02/01/27

(b)

..

8

7,842

Tempo

Acquisition

LLC,

5.75%,

06/01/25

(b)

.

7

7,013

Twilio,

Inc.

3.63%,

03/15/29

.................

23

20,983

3.88%,

03/15/31

.................

96

85,488

1,108,793

Leisure

Products

—

0.0%

Acushnet

Co.,

7.38%,

10/15/28

(b)

.......

12

12,519

Mattel,

Inc.

6.20%,

10/01/40

.................

61

59,004

5.45%,

11/01/41

.................

2

1,801

73,324

Life

Sciences

Tools

&

Services

—

0.0%

Fortrea

Holdings,

Inc.,

7.50%,

07/01/30

(b)

..

26

26,701

Star

Parent,

Inc.,

9.00%,

10/01/30

(b)

......

128

134,893

Thermo

Fisher

Scientific,

Inc.,

2.00%,

10/15/31

180

151,661

313,255

Machinery

—

0.2%

Amsted

Industries,

Inc.,

5.63%,

07/01/27

(b)

.

22

21,921

ATS

Corp.,

4.13%,

12/15/28

(b)

.........

34

31,271

Chart

Industries,

Inc.

(b)

7.50%,

01/01/30

.................

138

144,244

9.50%,

01/01/31

.................

22

23,896

Security

Par

(000)

Par

(000)

Value

Machinery

(continued)

Enpro,

Inc.,

5.75%,

10/15/26

..........

USD

57

$

56,420

GrafTech

Global

Enterprises,

Inc.,

9.88%,

12/15/28

(b)

....................

19

14,654

Husky

III

Holding

Ltd.,

13.00%,

(13.00%

Cash

or

13.75%

PIK),

02/15/25

(b)(j)

.........

157

156,312

Madison

IAQ

LLC,

5.88%,

06/30/29

(b)

.....

177

155,952

Mueller

Water

Products,

Inc.,

4.00%,

06/15/29

(b)

29

26,419

OT

Merger

Corp.,

7.88%,

10/15/29

(b)

.....

44

26,356

Otis

Worldwide

Corp.

2.29%,

04/05/27

.................

46

42,869

5.25%,

08/16/28

.................

55

56,528

2.57%,

02/15/30

.................

44

39,125

Terex

Corp.,

5.00%,

05/15/29

(b)

........

59

55,607

Titan

Acquisition

Ltd.,

7.75%,

04/15/26

(b)

...

9

9,057

Titan

International,

Inc.,

7.00%,

04/30/28

..

22

22,009

TK

Elevator

US

Newco,

Inc.,

5.25%,

07/15/27

(b)

200

196,471

Wabash

National

Corp.,

4.50%,

10/15/28

(b)

.

39

35,190

1,114,301

Media

—

0.8%

AMC

Networks,

Inc.,

4.75%,

08/01/25

....

17

16,555

Cable

One,

Inc.

0.00%,

03/15/26

(m)(n)

..............

21

17,819

1.13%,

03/15/28

(m)

...............

55

41,662

4.00%,

11/15/30

(b)

................

43

34,814

Charter

Communications

Operating

LLC

4.91%,

07/23/25

.................

885

876,587

6.15%,

11/10/26

.................

1,080

1,104,115

4.20%,

03/15/28

.................

27

25,934

2.25%,

01/15/29

.................

231

200,431

5.05%,

03/30/29

.................

157

155,336

2.80%,

04/01/31

.................

318

268,221

Clear

Channel

Outdoor

Holdings,

Inc.

(b)

5.13%,

08/15/27

.................

99

94,504

7.75%,

04/15/28

.................

123

106,051

9.00%,

09/15/28

.................

268

279,649

CMG

Media

Corp.,

8.88%,

12/15/27

(b)

....

42

33,311

Comcast

Corp.

2.35%,

01/15/27

.................

28

26,285

3.55%,

05/01/28

.................

50

48,219

4.15%,

10/15/28

.................

197

194,256

2.65%,

02/01/30

.................

86

77,419

3.40%,

04/01/30

.................

12

11,232

1.50%,

02/15/31

.................

232

190,131

5.50%,

11/15/32

.................

17

18,106

CSC

Holdings

LLC

(b)

11.25%,

05/15/28

................

200

206,072

4.50%,

11/15/31

.................

246

185,995

DirecTV

Financing

LLC,

5.88%,

08/15/27

(b)

.

77

72,347

DISH

DBS

Corp.

5.25%,

12/01/26

(b)

................

127

108,807

5.75%,

12/01/28

(b)

................

37

29,511

5.13%,

06/01/29

.................

56

28,862

DISH

Network

Corp.,

11.75%,

11/15/27

(b)

..

134

139,877

GCI

LLC,

4.75%,

10/15/28

(b)

..........

30

27,525

Gray

Television,

Inc.

(b)

5.88%,

07/15/26

.................

22

21,400

7.00%,

05/15/27

.................

40

38,020

Hughes

Satellite

Systems

Corp.,

5.25%,

08/01/26

.....................

15

13,200

Interpublic

Group

of

Cos.,

Inc.

(The),

2.40%,

03/01/31

.....................

170

143,632

Lamar

Media

Corp.,

4.00%,

02/15/30

.....

8

7,332

Midcontinent

Communications,

5.38%,

08/15/27

(b)

....................

18

17,545

Nexstar

Media,

Inc.,

5.63%,

07/15/27

(b)

....

11

10,636

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

25

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Media

(continued)

Outfront

Media

Capital

LLC

(b)

5.00%,

08/15/27

.................

USD

75

$

72,495

4.25%,

01/15/29

.................

38

34,290

4.63%,

03/15/30

.................

7

6,240

7.38%,

02/15/31

.................

40

42,006

Paramount

Global,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

4.00%),

6.38%,

03/30/62

(a)

..........

208

187,200

Radiate

Holdco

LLC

(b)

4.50%,

09/15/26

.................

89

67,881

6.50%,

09/15/28

.................

159

77,907

Sinclair

Television

Group,

Inc.,

4.13%,

12/01/30

(b)

....................

9

6,345

Sirius

XM

Radio,

Inc.

(b)

3.13%,

09/01/26

.................

108

101,484

5.00%,

08/01/27

.................

22

21,252

4.00%,

07/15/28

.................

13

12,023

Stagwell

Global

LLC,

5.63%,

08/15/29

(b)

...

17

15,636

TEGNA,

Inc.,

4.75%,

03/15/26

(b)

........

5

4,863

Univision

Communications,

Inc.

(b)

8.00%,

08/15/28

.................

135

139,269

7.38%,

06/30/30

.................

8

7,977

Videotron

Ltd.,

3.63%,

06/15/29

(b)

.......

11

9,983

Warnermedia

Holdings,

Inc.

5.14%,

03/15/52

.................

56

48,068

5.39%,

03/15/62

.................

36

30,830

5,757,147

Metals

&

Mining

—

0.4%

Arsenal

AIC

Parent

LLC,

8.00%,

10/01/30

(b)

.

25

26,084

ATI,

Inc.

5.88%,

12/01/27

.................

21

20,695

4.88%,

10/01/29

.................

17

15,843

7.25%,

08/15/30

.................

71

73,868

5.13%,

10/01/31

.................

71

65,853

BHP

Billiton

Finance

USA

Ltd.

4.88%,

02/27/26

.................

19

19,094

5.25%,

09/08/30

.................

14

14,504

5.25%,

09/08/33

.................

19

19,703

Big

River

Steel

LLC,

6.63%,

01/31/29

(b)

...

236

240,621

Carpenter

Technology

Corp.

6.38%,

07/15/28

.................

6

5,977

7.63%,

03/15/30

.................

49

50,528

Constellium

SE,

3.75%,

04/15/29

(b)

......

250

226,840

ERO

Copper

Corp.,

6.50%,

02/15/30

(b)

....

30

26,468

Freeport-McMoRan,

Inc.,

5.40%,

11/14/34

..

26

26,171

Glencore

Canada

Corp.,

6.20%,

06/15/35

..

14

14,638

Glencore

Funding

LLC

(b)

4.00%,

03/27/27

.................

250

242,768

5.70%,

05/08/33

.................

30

31,126

6.50%,

10/06/33

.................

401

437,177

Kaiser

Aluminum

Corp.

(b)

4.63%,

03/01/28

.................

39

36,069

4.50%,

06/01/31

.................

82

70,686

Mineral

Resources

Ltd.,

9.25%,

10/01/28

(b)

.

5

5,319

New

Gold,

Inc.,

7.50%,

07/15/27

(b)

......

95

95,843

Newmont

Corp.,

2.25%,

10/01/30

.......

72

62,143

Novelis

Corp.

(b)

3.25%,

11/15/26

.................

49

46,129

4.75%,

01/30/30

.................

232

218,184

3.88%,

08/15/31

.................

132

116,323

Rio

Tinto

Finance

USA

plc,

5.00%,

03/09/33

122

126,696

Steel

Dynamics,

Inc.

1.65%,

10/15/27

.................

180

160,179

3.25%,

01/15/31

.................

42

37,842

Security

Par

(000)

Par

(000)

Value

Metals

&

Mining

(continued)

Teck

Resources

Ltd.,

3.90%,

07/15/30

....

USD

200

$

185,595

2,718,966

Mortgage

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

(b)

Ladder

Capital

Finance

Holdings

LLLP

5.25%,

10/01/25

.................

6

5,919

4.25%,

02/01/27

.................

15

14,133

4.75%,

06/15/29

.................

26

23,444

Starwood

Property

Trust,

Inc.,

4.38%,

01/15/27

3

2,827

46,323

Multi-Utilities

—

0.4%

Berkshire

Hathaway

Energy

Co.,

1.65%,

05/15/31

.....................

177

141,946

Consumers

Energy

Co.,

4.90%,

02/15/29

..

457

464,979

Dominion

Energy,

Inc.,

Series

C,

3.38%,

04/01/30

.....................

66

60,761

NiSource,

Inc.

5.25%,

03/30/28

.................

333

339,532

5.40%,

06/30/33

.................

142

146,413

San

Diego

Gas

&

Electric

Co.,

4.95%,

08/15/28

678

691,896

Sempra

3.30%,

04/01/25

.................

75

73,171

5.40%,

08/01/26

.................

102

103,336

3.25%,

06/15/27

.................

325

308,026

3.40%,

02/01/28

.................

207

197,273

3.70%,

04/01/29

.................

66

62,879

WEC

Energy

Group,

Inc.

4.75%,

01/09/26

.................

190

189,254

5.60%,

09/12/26

.................

135

137,395

4.75%,

01/15/28

.................

9

8,998

2,925,859

Office

REITs

—

0.2%

Alexandria

Real

Estate

Equities,

Inc.

3.95%,

01/15/27

.................

350

338,489

4.90%,

12/15/30

.................

260

260,311

2.00%,

05/18/32

.................

145

116,319

1.88%,

02/01/33

.................

160

124,555

Boston

Properties

LP

3.80%,

02/01/24

.................

213

212,598

6.75%,

12/01/27

.................

49

51,305

Kilroy

Realty

LP

4.25%,

08/15/29

.................

69

63,240

3.05%,

02/15/30

.................

76

64,604

1,231,421

Oil,

Gas

&

Consumable

Fuels

—

2.8%

Aethon

United

BR

LP,

8.25%,

02/15/26

(b)

...

61

61,305

Antero

Midstream

Partners

LP

(b)

5.75%,

03/01/27

.................

43

42,666

5.75%,

01/15/28

.................

19

18,811

Apache

Corp.,

5.35%,

07/01/49

........

19

15,798

Ascent

Resources

Utica

Holdings

LLC

(b)

9.00%,

11/01/27

.................

76

95,760

8.25%,

12/31/28

.................

116

116,674

5.88%,

06/30/29

.................

54

50,239

Baytex

Energy

Corp.,

8.50%,

04/30/30

(b)

...

35

36,222

BP

Capital

Markets

America,

Inc.

3.54%,

04/06/27

.................

264

256,677

3.59%,

04/14/27

.................

117

113,431

4.23%,

11/06/28

.................

386

383,639

1.75%,

08/10/30

.................

210

177,828

Buckeye

Partners

LP

5.85%,

11/15/43

.................

13

10,531

5.60%,

10/15/44

.................

18

13,850

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

26

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

Callon

Petroleum

Co.

6.38%,

07/01/26

.................

USD

60

$

59,715

8.00%,

08/01/28

(b)

................

55

56,170

7.50%,

06/15/30

(b)

................

122

123,040

Cenovus

Energy,

Inc.,

2.65%,

01/15/32

...

27

22,374

Cheniere

Corpus

Christi

Holdings

LLC

5.88%,

03/31/25

.................

492

493,049

5.13%,

06/30/27

.................

394

395,913

3.70%,

11/15/29

.................

7

6,611

Cheniere

Energy

Partners

LP

3.25%,

01/31/32

.................

63

53,678

5.95%,

06/30/33

(b)

................

225

231,016

Chesapeake

Energy

Corp.,

6.75%,

04/15/29

(b)

19

19,177

CITGO

Petroleum

Corp.

(b)

7.00%,

06/15/25

.................

24

23,961

6.38%,

06/15/26

.................

86

85,716

8.38%,

01/15/29

.................

69

70,955

Civitas

Resources,

Inc.

(b)

8.38%,

07/01/28

.................

109

113,790

8.63%,

11/01/30

.................

56

59,400

8.75%,

07/01/31

.................

117

124,552

CNX

Midstream

Partners

LP,

4.75%,

04/15/30

(b)

22

19,756

CNX

Resources

Corp.,

7.38%,

01/15/31

(b)

..

14

14,097

Columbia

Pipelines

Holding

Co.

LLC,

6.06%,

08/15/26

(b)

....................

6

6,142

Comstock

Resources,

Inc.

(b)

6.75%,

03/01/29

.................

34

31,093

5.88%,

01/15/30

.................

135

117,086

ConocoPhillips

Co.

6.95%,

04/15/29

.................

188

209,430

4.15%,

11/15/34

.................

9

8,422

Coterra

Energy,

Inc.

3.90%,

05/15/27

.................

12

11,610

4.38%,

03/15/29

.................

8

7,763

CQP

Holdco

LP,

5.50%,

06/15/31

(b)

......

400

379,042

Crescent

Energy

Finance

LLC

(b)

7.25%,

05/01/26

.................

105

105,647

9.25%,

02/15/28

.................

89

92,344

CrownRock

LP,

5.00%,

05/01/29

(b)

......

19

18,525

Devon

Energy

Corp.

5.85%,

12/15/25

.................

31

31,334

4.50%,

01/15/30

.................

63

60,488

Diamond

Foreign

Asset

Co.,

8.50%,

10/01/30

(b)

30

30,678

Diamondback

Energy,

Inc.

3.13%,

03/24/31

.................

436

387,527

6.25%,

03/15/33

.................

216

230,801

DT

Midstream,

Inc.

(b)

4.13%,

06/15/29

.................

28

25,759

4.38%,

06/15/31

.................

26

23,453

Enbridge

Energy

Partners

LP

5.88%,

10/15/25

.................

94

94,980

Series

B,

7.50%,

04/15/38

..........

23

26,733

Enbridge,

Inc.

5.90%,

11/15/26

.................

327

335,734

5.70%,

03/08/33

.................

367

381,459

2.50%,

08/01/33

.................

40

32,756

Series

16-A,

(3-mo.

CME

Term

SOFR

+

4.15%),

6.00%,

01/15/77

(a)

........

775

735,696

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

4.43%),

8.50%,

01/15/84

(a)

...................

25

26,591

Energy

Transfer

LP

3.90%,

07/15/26

.................

245

238,105

4.40%,

03/15/27

.................

400

391,047

5.55%,

02/15/28

.................

100

102,010

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

4.95%,

05/15/28

.................

USD

200

$

198,993

6.10%,

12/01/28

.................

1,230

1,294,448

6.00%,

02/01/29

(b)

................

2

2,018

6.40%,

12/01/30

.................

405

433,026

7.38%,

02/01/31

(b)

................

16

16,815

EnLink

Midstream

LLC

(b)

5.63%,

01/15/28

.................

81

80,083

6.50%,

09/01/30

.................

10

10,210

EnLink

Midstream

Partners

LP

4.85%,

07/15/26

.................

3

2,939

5.60%,

04/01/44

.................

18

15,666

Enterprise

Products

Operating

LLC,

4.15%,

10/16/28

.....................

633

624,973

EOG

Resources,

Inc.,

4.38%,

04/15/30

...

15

14,939

EQM

Midstream

Partners

LP

4.13%,

12/01/26

.................

13

12,557

6.50%,

07/01/27

(b)

................

14

14,255

4.50%,

01/15/29

(b)

................

17

16,060

7.50%,

06/01/30

(b)

................

14

15,050

4.75%,

01/15/31

(b)

................

11

10,237

EQT

Corp.,

3.90%,

10/01/27

..........

330

315,693

FTAI

Infra

Escrow

Holdings

LLC,

10.50%,

06/01/27

(b)

....................

14

14,523

Genesis

Energy

LP

7.75%,

02/01/28

.................

9

9,031

8.25%,

01/15/29

.................

25

25,726

8.88%,

04/15/30

.................

17

17,578

Gulfport

Energy

Corp.,

8.00%,

05/17/26

(b)

..

17

16,679

Harvest

Midstream

I

LP,

7.50%,

09/01/28

(b)

.

9

8,947

Hess

Corp.,

4.30%,

04/01/27

..........

1,133

1,120,996

Hess

Midstream

Operations

LP,

4.25%,

02/15/30

(b)

....................

28

25,760

Hilcorp

Energy

I

LP

(b)

6.25%,

11/01/28

.................

33

32,873

5.75%,

02/01/29

.................

55

53,113

6.00%,

04/15/30

.................

1

970

8.38%,

11/01/33

.................

84

88,993

ITT

Holdings

LLC,

6.50%,

08/01/29

(b)

.....

66

58,386

Kinder

Morgan,

Inc.

4.30%,

06/01/25

.................

319

314,951

4.30%,

03/01/28

.................

707

697,087

Kinetik

Holdings

LP

(b)

6.63%,

12/15/28

.................

13

13,244

5.88%,

06/15/30

.................

30

29,432

Magnolia

Oil

&

Gas

Operating

LLC,

6.00%,

08/01/26

(b)

....................

13

12,675

Marathon

Oil

Corp.,

4.40%,

07/15/27

.....

41

39,987

Marathon

Petroleum

Corp.,

4.70%,

05/01/25

126

125,146

Matador

Resources

Co.

5.88%,

09/15/26

.................

17

16,859

6.88%,

04/15/28

(b)

................

55

55,787

MPLX

LP

4.88%,

06/01/25

.................

450

447,043

1.75%,

03/01/26

.................

389

363,884

4.25%,

12/01/27

.................

100

97,828

4.95%,

09/01/32

.................

66

64,580

5.00%,

03/01/33

.................

221

216,490

Murphy

Oil

Corp.,

5.88%,

12/01/42

(l)

.....

5

4,418

New

Fortress

Energy,

Inc.,

6.75%,

09/15/25

(b)

65

64,481

NGL

Energy

Operating

LLC,

7.50%,

02/01/26

(b)

71

71,711

Northern

Oil

&

Gas,

Inc.

(b)

8.13%,

03/01/28

.................

144

145,800

8.75%,

06/15/31

.................

42

43,747

NuStar

Logistics

LP

5.75%,

10/01/25

.................

13

12,918

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

27

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

6.38%,

10/01/30

.................

USD

6

$

6,010

Occidental

Petroleum

Corp.

8.50%,

07/15/27

.................

250

272,693

7.50%,

05/01/31

.................

323

362,195

7.88%,

09/15/31

.................

6

6,825

ONEOK,

Inc.,

6.05%,

09/01/33

.........

95

100,654

Ovintiv,

Inc.

5.38%,

01/01/26

.................

198

198,004

5.65%,

05/15/28

.................

447

456,092

PBF

Holding

Co.

LLC,

7.88%,

09/15/30

(b)

..

24

24,442

Pioneer

Natural

Resources

Co.

1.13%,

01/15/26

.................

325

301,674

5.10%,

03/29/26

.................

100

100,729

1.90%,

08/15/30

.................

34

28,866

2.15%,

01/15/31

.................

192

163,113

Rockcliff

Energy

II

LLC,

5.50%,

10/15/29

(b)

.

59

55,762

Rockies

Express

Pipeline

LLC,

4.95%,

07/15/29

(b)

....................

18

17,211

Sabine

Pass

Liquefaction

LLC

5.63%,

03/01/25

.................

360

360,689

5.88%,

06/30/26

.................

321

326,777

5.00%,

03/15/27

.................

100

100,431

4.50%,

05/15/30

.................

120

117,272

Sitio

Royalties

Operating

Partnership

LP,

7.88%,

11/01/28

(b)

...............

52

53,883

SM

Energy

Co.

6.75%,

09/15/26

.................

6

5,984

6.63%,

01/15/27

.................

6

5,966

6.50%,

07/15/28

.................

19

19,009

Southwestern

Energy

Co.

5.70%,

01/23/25

(l)

................

4

3,984

5.38%,

02/01/29

.................

34

33,180

Spectra

Energy

Partners

LP,

3.50%,

03/15/25

430

420,230

Sunoco

LP

5.88%,

03/15/28

.................

22

21,971

7.00%,

09/15/28

(b)

................

26

26,826

Tallgrass

Energy

Partners

LP

(b)

7.50%,

10/01/25

.................

2

2,010

6.00%,

03/01/27

.................

19

18,580

5.50%,

01/15/28

.................

13

12,285

6.00%,

12/31/30

.................

2

1,859

6.00%,

09/01/31

.................

11

10,174

Targa

Resources

Corp.

6.15%,

03/01/29

.................

25

26,142

6.50%,

03/30/34

.................

111

119,799

Venture

Global

Calcasieu

Pass

LLC

(b)

3.88%,

08/15/29

.................

132

119,764

3.88%,

11/01/33

.................

81

68,643

Vermilion

Energy,

Inc.,

6.88%,

05/01/30

(b)

..

15

14,401

Viper

Energy,

Inc.,

7.38%,

11/01/31

(b)

.....

275

284,625

Vital

Energy,

Inc.

10.13%,

01/15/28

................

36

36,992

9.75%,

10/15/30

.................

44

45,614

Western

Midstream

Operating

LP

3.95%,

06/01/25

.................

363

353,925

5.45%,

04/01/44

.................

82

74,235

5.30%,

03/01/48

.................

14

12,183

5.50%,

08/15/48

.................

13

11,594

Williams

Cos.,

Inc.

(The)

4.00%,

09/15/25

.................

280

274,811

5.40%,

03/02/26

.................

336

339,357

3.75%,

06/15/27

.................

100

96,384

5.30%,

08/15/28

.................

452

462,646

20,874,756

Security

Par

(000)

Par

(000)

Value

Paper

&

Forest

Products

—

0.0%

Suzano

Austria

GmbH,

2.50%,

09/15/28

...

USD

44

$

38,486

Passenger

Airlines

—

0.1%

Air

Canada,

3.88%,

08/15/26

(b)

.........

53

50,636

Air

Canada

Pass-Through

Trust,

Series

2017-1,

Class

AA,

3.30%,

01/15/30

(b)

........

13

12,018

American

Airlines

Pass-Through

Trust,

Series

2019-1,

Class

B,

3.85%,

02/15/28

.....

53

47,652

American

Airlines,

Inc.

(b)

5.75%,

04/20/29

.................

103

100,490

8.50%,

05/15/29

.................

65

68,640

British

Airways

Pass-Through

Trust,

Series

2019-1,

Class

A,

3.35%,

06/15/29

(b)

....

28

25,080

Spirit

Loyalty

Cayman

Ltd.

8.00%,

09/20/25

(b)

................

27

19,523

United

Airlines

Pass-Through

Trust

Series

2020-1,

Class

B,

4.88%,

01/15/26

12

11,778

Series

2019-2,

Class

AA,

2.70%,

05/01/32

38

31,715

United

Airlines,

Inc.,

4.63%,

04/15/29

(b)

....

113

105,682

VistaJet

Malta

Finance

plc

(b)

7.88%,

05/01/27

.................

18

15,481

6.38%,

02/01/30

.................

29

20,253

508,948

Personal

Care

Products

—

0.0%

Coty,

Inc.

(b)

4.75%,

01/15/29

.................

7

6,677

6.63%,

07/15/30

.................

35

35,956

Haleon

UK

Capital

plc,

3.13%,

03/24/25

...

250

244,106

286,739

Pharmaceuticals

—

0.8%

1375209

BC

Ltd.,

9.00%,

01/30/28

(b)

.....

31

30,228

Bayer

US

Finance

II

LLC

(b)

4.25%,

12/15/25

.................

200

194,893

4.38%,

12/15/28

.................

360

342,086

Bayer

US

Finance

LLC

(b)

6.13%,

11/21/26

.................

2,248

2,285,496

6.50%,

11/21/33

.................

510

527,042

Bristol-Myers

Squibb

Co.,

5.90%,

11/15/33

.

125

136,191

Catalent

Pharma

Solutions,

Inc.

(b)

5.00%,

07/15/27

.................

52

50,241

3.13%,

02/15/29

.................

50

43,756

3.50%,

04/01/30

.................

35

30,448

Merck

&

Co.,

Inc.,

2.15%,

12/10/31

......

367

313,326

Organon

&

Co.,

4.13%,

04/30/28

(b)

......

204

187,774

Pfizer

Investment

Enterprises

Pte.

Ltd.

4.45%,

05/19/28

.................

352

351,818

4.65%,

05/19/30

.................

403

405,837

4.75%,

05/19/33

.................

478

479,073

Takeda

Pharmaceutical

Co.

Ltd.,

5.00%,

11/26/28

.....................

200

202,972

Teva

Pharmaceutical

Finance

Netherlands

III

BV

6.00%,

04/15/24

.................

246

244,924

3.15%,

10/01/26

.................

140

129,412

5,955,517

Professional

Services

—

0.0%

(b)

AMN

Healthcare,

Inc.,

4.00%,

04/15/29

...

29

26,156

CoreLogic,

Inc.,

4.50%,

05/01/28

.......

95

83,221

Dun

&

Bradstreet

Corp.

(The),

5.00%,

12/15/29

143

133,393

KBR,

Inc.,

4.75%,

09/30/28

...........

13

12,048

Science

Applications

International

Corp.,

4.88%,

04/01/28

................

28

26,670

281,488

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

28

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Real

Estate

Management

&

Development

—

0.0%

Anywhere

Real

Estate

Group

LLC

Series

AI,

7.00%,

04/15/30

..........

USD

31

$

28,772

7.00%,

04/15/30

(b)

................

36

32,786

Cushman

&

Wakefield

US

Borrower

LLC

(b)

6.75%,

05/15/28

.................

25

24,875

8.88%,

09/01/31

.................

20

21,195

Howard

Hughes

Corp.

(The),

4.13%,

02/01/29

(b)

34

30,318

Realogy

Group

LLC,

5.75%,

01/15/29

(b)

...

5

3,886

141,832

Residential

REITs

—

0.1%

AvalonBay

Communities,

Inc.,

5.00%,

02/15/33

247

251,187

Camden

Property

Trust,

2.80%,

05/15/30

..

169

151,124

UDR,

Inc.,

2.10%,

08/01/32

...........

75

58,774

461,085

Retail

REITs

—

0.3%

Brookfield

Property

REIT,

Inc.,

4.50%,

04/01/27

(b)

....................

22

19,800

Kimco

Realty

OP

LLC

1.90%,

03/01/28

.................

165

145,468

4.60%,

02/01/33

.................

205

197,749

6.40%,

03/01/34

.................

182

199,553

Realty

Income

Corp.

3.95%,

08/15/27

.................

100

97,207

3.40%,

01/15/28

.................

86

81,719

3.65%,

01/15/28

.................

200

191,763

4.70%,

12/15/28

.................

83

83,612

4.85%,

03/15/30

.................

416

417,825

3.25%,

01/15/31

.................

96

87,222

2.85%,

12/15/32

.................

96

81,565

Regency

Centers

LP

4.13%,

03/15/28

.................

200

191,788

3.70%,

06/15/30

.................

506

470,469

2,265,740

Semiconductors

&

Semiconductor

Equipment

—

0.6%

Analog

Devices,

Inc.,

1.70%,

10/01/28

....

95

84,249

Broadcom

Corp.,

3.88%,

01/15/27

......

375

365,965

Broadcom,

Inc.

3.15%,

11/15/25

.................

193

186,939

4.00%,

04/15/29

(b)

................

404

389,964

4.15%,

11/15/30

.................

93

88,832

2.45%,

02/15/31

(b)

................

282

241,128

Entegris

Escrow

Corp.,

4.75%,

04/15/29

(b)

..

275

264,939

Entegris,

Inc.,

4.38%,

04/15/28

(b)

.......

6

5,710

Intel

Corp.,

4.88%,

02/10/28

..........

247

251,120

KLA

Corp.,

4.10%,

03/15/29

..........

675

671,351

Lam

Research

Corp.,

4.00%,

03/15/29

....

55

54,267

NVIDIA

Corp.

1.55%,

06/15/28

.................

76

68,050

2.00%,

06/15/31

.................

51

43,713

NXP

BV

5.35%,

03/01/26

.................

340

341,605

3.88%,

06/18/26

.................

250

243,760

3.15%,

05/01/27

.................

150

142,027

2.50%,

05/11/31

.................

636

538,851

2.65%,

02/15/32

.................

9

7,595

QUALCOMM,

Inc.,

3.25%,

05/20/27

.....

198

191,667

Synaptics,

Inc.,

4.00%,

06/15/29

(b)

.......

44

39,467

TSMC

Global

Ltd.,

1.25%,

04/23/26

(b)

.....

309

285,470

4,506,669

Software

—

0.8%

Alteryx,

Inc.,

8.75%,

03/15/28

(b)

........

53

56,412

Autodesk,

Inc.

3.50%,

06/15/27

.................

279

270,811

Security

Par

(000)

Par

(000)

Value

Software

(continued)

2.40%,

12/15/31

.................

USD

292

$

249,830

Boxer

Parent

Co.,

Inc.,

9.13%,

03/01/26

(b)

..

209

208,541

Camelot

Finance

SA,

4.50%,

11/01/26

(b)

...

87

84,949

Capstone

Borrower,

Inc.,

8.00%,

06/15/30

(b)

.

44

45,776

Central

Parent,

Inc.,

7.25%,

06/15/29

(b)

....

94

95,867

Clarivate

Science

Holdings

Corp.

(b)

3.88%,

07/01/28

.................

177

166,892

4.88%,

07/01/29

.................

159

149,195

Cloud

Software

Group,

Inc.

(b)

6.50%,

03/31/29

.................

523

498,127

9.00%,

09/30/29

.................

276

262,325

Consensus

Cloud

Solutions,

Inc.

(b)

6.00%,

10/15/26

.................

6

5,705

6.50%,

10/15/28

.................

24

21,769

Crowdstrike

Holdings,

Inc.,

3.00%,

02/15/29

7

6,326

Elastic

NV,

4.13%,

07/15/29

(b)

.........

43

39,485

Fair

Isaac

Corp.,

4.00%,

06/15/28

(b)

......

52

49,211

McAfee

Corp.,

7.38%,

02/15/30

(b)

.......

146

133,335

MicroStrategy,

Inc.,

6.13%,

06/15/28

(b)

....

66

64,029

Open

Text

Corp.,

6.90%,

12/01/27

(b)

.....

110

114,362

Oracle

Corp.

5.80%,

11/10/25

.................

40

40,624

1.65%,

03/25/26

.................

770

718,315

2.65%,

07/15/26

.................

254

240,836

6.15%,

11/09/29

.................

873

939,132

2.88%,

03/25/31

.................

7

6,201

3.90%,

05/15/35

.................

234

208,650

Roper

Technologies,

Inc.

3.80%,

12/15/26

.................

112

109,529

4.20%,

09/15/28

.................

211

207,308

Sabre

GLBL,

Inc.,

8.63%,

06/01/27

(b)

.....

65

59,151

SS&C

Technologies,

Inc.,

5.50%,

09/30/27

(b)

137

135,045

Veritas

US,

Inc.,

7.50%,

09/01/25

(b)

......

60

49,534

VMware

LLC

1.40%,

08/15/26

.................

296

270,746

4.65%,

05/15/27

.................

271

268,681

3.90%,

08/21/27

.................

44

42,683

2.20%,

08/15/31

.................

228

188,924

Workday,

Inc.,

3.50%,

04/01/27

........

20

19,351

ZoomInfo

Technologies

LLC,

3.88%,

02/01/29

(b)

141

127,886

6,155,543

Specialized

REITs

—

0.3%

American

Tower

Corp.

1.30%,

09/15/25

.................

51

47,717

4.40%,

02/15/26

.................

588

580,479

1.45%,

09/15/26

.................

12

10,933

3.65%,

03/15/27

.................

13

12,504

5.80%,

11/15/28

.................

197

204,647

2.30%,

09/15/31

.................

18

14,883

Crown

Castle,

Inc.

4.45%,

02/15/26

.................

9

8,865

4.80%,

09/01/28

.................

6

5,920

2.50%,

07/15/31

.................

19

15,841

5.10%,

05/01/33

.................

6

5,939

Equinix,

Inc.

1.00%,

09/15/25

.................

254

236,946

2.90%,

11/18/26

.................

254

241,214

2.50%,

05/15/31

.................

305

258,891

Iron

Mountain,

Inc.

(b)

7.00%,

02/15/29

.................

101

103,816

5.63%,

07/15/32

.................

14

13,253

SBA

Communications

Corp.

3.88%,

02/15/27

.................

92

88,349

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

29

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Specialized

REITs

(continued)

3.13%,

02/01/29

.................

USD

76

$

68,286

1,918,483

Specialty

Retail

—

0.3%

Arko

Corp.,

5.13%,

11/15/29

(b)

.........

17

14,709

Asbury

Automotive

Group,

Inc.

4.50%,

03/01/28

.................

4

3,799

4.75%,

03/01/30

.................

10

9,335

5.00%,

02/15/32

(b)

................

23

20,902

Group

1

Automotive,

Inc.,

4.00%,

08/15/28

(b)

14

12,983

GYP

Holdings

III

Corp.,

4.63%,

05/01/29

(b)

..

65

59,339

Home

Depot,

Inc.

(The),

1.88%,

09/15/31

..

167

139,712

Ken

Garff

Automotive

LLC,

4.88%,

09/15/28

(b)

18

17,035

Lowe's

Cos.,

Inc.

3.35%,

04/01/27

.................

248

238,871

3.10%,

05/03/27

.................

240

229,766

3.65%,

04/05/29

.................

602

580,235

5.00%,

04/15/33

.................

343

350,298

5.15%,

07/01/33

.................

6

6,165

Murphy

Oil

USA,

Inc.,

4.75%,

09/15/29

....

34

32,215

Penske

Automotive

Group,

Inc.,

3.50%,

09/01/25

.....................

14

13,582

Specialty

Building

Products

Holdings

LLC,

6.38%,

09/30/26

(b)

...............

27

26,481

White

Cap

Buyer

LLC,

6.88%,

10/15/28

(b)

..

197

190,698

White

Cap

Parent

LLC,

8.25%,

(8.25%

Cash

or

9.00%

PIK),

03/15/26

(b)(j)

...........

81

80,624

2,026,749

Technology

Hardware,

Storage

&

Peripherals

—

0.1%

Dell

International

LLC

6.02%,

06/15/26

.................

144

147,400

6.10%,

07/15/27

.................

239

248,413

3.45%,

12/15/51

.................

21

15,178

HP,

Inc.,

4.75%,

01/15/28

............

48

48,042

Seagate

HDD

Cayman

(b)

8.25%,

12/15/29

.................

65

70,104

8.50%,

07/15/31

.................

62

67,289

596,426

Textiles,

Apparel

&

Luxury

Goods

—

0.1%

Crocs,

Inc.,

4.13%,

08/15/31

(b)

.........

33

27,924

Hanesbrands,

Inc.,

4.88%,

05/15/26

(b)

....

17

16,399

Kontoor

Brands,

Inc.,

4.13%,

11/15/29

(b)

...

37

33,383

Levi

Strauss

&

Co.,

3.50%,

03/01/31

(b)

....

46

39,829

Tapestry,

Inc.

7.05%,

11/27/25

.................

325

332,151

7.00%,

11/27/26

.................

494

512,121

961,807

Tobacco

—

0.3%

Altria

Group,

Inc.

2.35%,

05/06/25

.................

101

97,405

4.40%,

02/14/26

.................

132

130,766

6.20%,

11/01/28

.................

150

157,312

5.80%,

02/14/39

.................

111

113,064

BAT

Capital

Corp.

2.79%,

09/06/24

.................

65

63,674

3.22%,

09/06/26

.................

525

502,108

4.70%,

04/02/27

.................

561

555,283

6.42%,

08/02/33

.................

71

74,287

BAT

International

Finance

plc,

5.93%,

02/02/29

329

341,836

Philip

Morris

International,

Inc.

5.13%,

02/15/30

.................

87

88,420

5.50%,

09/07/30

.................

281

291,224

Reynolds

American,

Inc.,

5.70%,

08/15/35

..

117

115,463

2,530,842

Security

Par

(000)

Par

(000)

Value

Trading

Companies

&

Distributors

—

0.5%

Air

Lease

Corp.

3.38%,

07/01/25

.................

USD

345

$

333,926

2.88%,

01/15/26

.................

356

339,148

1.88%,

08/15/26

.................

79

72,665

3.63%,

04/01/27

.................

84

79,434

Aircastle

Ltd.,

6.50%,

07/18/28

(b)

........

18

18,355

Aviation

Capital

Group

LLC

(b)

1.95%,

09/20/26

.................

683

619,728

3.50%,

11/01/27

.................

7

6,448

6.75%,

10/25/28

.................

632

659,764

Beacon

Roofing

Supply,

Inc.

(b)

4.13%,

05/15/29

.................

23

20,968

6.50%,

08/01/30

.................

42

42,944

Fortress

Transportation

&

Infrastructure

Investors

LLC

(b)

6.50%,

10/01/25

.................

92

91,705

9.75%,

08/01/27

.................

92

95,680

5.50%,

05/01/28

.................

56

53,852

7.88%,

12/01/30

.................

96

100,011

Foundation

Building

Materials,

Inc.,

6.00%,

03/01/29

(b)

....................

27

24,277

GATX

Corp.,

3.25%,

03/30/25

.........

454

441,898

H&E

Equipment

Services,

Inc.,

3.88%,

12/15/28

(b)

....................

16

14,549

Herc

Holdings,

Inc.,

5.50%,

07/15/27

(b)

....

92

90,833

Imola

Merger

Corp.,

4.75%,

05/15/29

(b)

....

51

48,455

SRS

Distribution,

Inc.

(b)

4.63%,

07/01/28

.................

88

83,485

6.13%,

07/01/29

.................

132

125,140

6.00%,

12/01/29

.................

84

78,322

United

Rentals

North

America,

Inc.,

6.00%,

12/15/29

(b)

....................

221

224,374

WESCO

Distribution,

Inc.

(b)

7.13%,

06/15/25

.................

40

40,292

7.25%,

06/15/28

.................

75

77,087

3,783,340

Wireless

Telecommunication

Services

—

0.8%

America

Movil

SAB

de

CV

3.63%,

04/22/29

.................

262

246,853

2.88%,

05/07/30

.................

200

177,700

Connect

Finco

SARL,

6.75%,

10/01/26

(b)

...

200

198,802

Rogers

Communications,

Inc.

3.20%,

03/15/27

.................

770

734,968

3.80%,

03/15/32

.................

1,140

1,049,055

Sprint

LLC,

7.13%,

06/15/24

..........

100

100,434

T-Mobile

USA,

Inc.

1.50%,

02/15/26

.................

341

317,516

2.25%,

02/15/26

.................

452

428,306

2.63%,

04/15/26

.................

48

45,655

4.75%,

02/01/28

.................

650

647,641

2.05%,

02/15/28

.................

186

167,825

4.80%,

07/15/28

.................

655

660,480

2.63%,

02/15/29

.................

228

205,262

2.40%,

03/15/29

.................

34

30,513

3.88%,

04/15/30

.................

46

43,622

2.55%,

02/15/31

.................

22

18,949

2.25%,

11/15/31

.................

221

184,005

2.70%,

03/15/32

.................

24

20,453

Vmed

O2

UK

Financing

I

plc,

4.75%,

07/15/31

(b)

200

178,521

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

30

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Wireless

Telecommunication

Services

(continued)

Vodafone

Group

plc,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

2.45%),

3.25%,

06/04/81

(a)

..........

USD

265

$

243,755

5,700,315

Total

Corporate

Bonds

—

30.5%

(Cost:

$226,304,115)

.............................

225,778,384

Equity-Linked

Notes

Automobiles

—

0.0%

BNP

Paribas

SA

(General

Motors

Co.),

17.24%, 01/31/24

(b)

...............

4

130,617

Banks

—

0.2%

BNP

Paribas

SA

(First

Horizon

Corp.),

28.42%, 01/18/24

(b)

...............

8

111,266

JPMorgan

Structured

Products

BV

(Citigroup,

Inc.),

12.78%, 01/12/24

.............

3

147,869

JPMorgan

Structured

Products

BV

(Wells

Fargo

&

Co.),

10.96%, 01/12/24

.......

6

259,209

Nomura

Holdings,

Inc.

(Bank

of

America

Corp.),

17.99%, 01/12/24

................

7

221,699

Royal

Bank

of

Canada

(Bawag

Group

AG),

13.36%, 01/08/24

(b)

...............

1

103,559

Royal

Bank

of

Canada

(Fifth

Third

Bancorp),

24.69%, 01/19/24

(b)

...............

4

133,743

UBS

AG

(JPMorgan

Chase

&

Co.),

9.35%, 01/12/24

.................

3

552,700

1,530,045

Beverages

—

0.2%

Barclays

Bank

plc

(Molson

Coors

Beverage

Co.),

11.56%, 02/21/24

.............

4

216,943

BNP

Paribas

SA

(Monster

Beverage

Corp.),

10.11%, 02/28/24

(b)

...............

2

141,625

Royal

Bank

of

Canada

(Anheuser-Busch

InBev

SA),

9.14%, 01/10/24

..............

EUR

6

371,646

Royal

Bank

of

Canada

(PepsiCo,

Inc.),

5.31%, 02/09/24

(b)

................

USD

1

237,190

SGA

Societe

Generale

Acceptance

NV

(Coca-

Cola

Co.

(The)),

5.54%, 02/14/24

......

8

467,720

1,435,124

Broadline

Retail

—

0.2%

BNP

Paribas

SA

(Etsy,

Inc.),

23.16%, 02/22/24

(b)

...............

1

94,793

BNP

Paribas

SA

(MercadoLibre,

Inc.),

22.13%, 02/22/24

(b)

...............

—

(o)

142,908

Citigroup,

Inc.

(Amazon.com,

Inc.),

18.18%, 02/02/24

................

7

924,959

Mizuho

Markets

Cayman

LP

(Macy's,

Inc.),

32.37%, 01/11/24

................

7

96,682

1,259,342

Building

Products

—

0.0%

Royal

Bank

of

Canada

(Cie

de

Saint-Gobain

SA),

14.10%, 01/10/24

(b)

............

EUR

2

114,757

Capital

Markets

—

0.2%

Barclays

Bank

plc

(Intercontinental

Exchange,

Inc.),

9.54%, 02/02/24

.............

USD

1

146,132

Barclays

Bank

plc

(LPL

Financial

Holdings,

Inc.),

18.38%, 02/02/24

.............

—

(o)

70,698

Barclays

Bank

plc

(Morgan

Stanley),

12.93%, 01/17/24

................

2

184,038

Mizuho

Markets

Cayman

LP

(Charles

Schwab

Corp.

(The)),

22.75%, 02/08/24

.......

3

188,161

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

Nomura

Holdings,

Inc.

(Cboe

Global

Markets,

Inc.),

7.19%, 01/08/24

.............

USD

1

$

179,385

Nomura

Holdings,

Inc.

(Goldman

Sachs

Group,

Inc.

(The)),

8.43%, 01/17/24

.........

—

(o)

147,960

UBS

AG

(CME

Group,

Inc.),

19.90%, 02/08/24

1

108,658

UBS

AG

(Moody's

Corp.),

8.20%, 01/31/24

.

—

(o)

129,535

1,154,567

Chemicals

—

0.1%

Citigroup,

Inc.

(LyondellBasell

Industries

NV),

17.16%, 02/02/24

................

1

71,659

JPMorgan

Structured

Products

BV

(Axalta

Coating

Systems

Ltd.),

10.46%, 01/25/24

3

109,992

JPMorgan

Structured

Products

BV

(Dow,

Inc.),

9.45%, 01/25/24

.................

2

112,051

JPMorgan

Structured

Products

BV

(PPG

Industries,

Inc.),

9.60%, 01/19/24

......

1

72,838

Royal

Bank

of

Canada

(Ecolab,

Inc.),

12.38%, 02/14/24

(b)

...............

1

147,973

Royal

Bank

of

Canada

(PPG

Industries,

Inc.),

7.90%, 01/19/24

(b)

................

2

258,258

772,771

Commercial

Services

&

Supplies

—

0.0%

Barclays

Bank

plc

(Republic

Services,

Inc.),

9.61%, 02/15/24

.................

1

126,333

Communications

Equipment

—

0.1%

Citigroup,

Inc.

(Arista

Networks,

Inc.),

19.45%, 02/13/24

................

1

185,848

Royal

Bank

of

Canada

(Ciena

Corp.),

16.50%, 02/09/24

(b)

...............

3

141,670

UBS

AG

(Juniper

Networks,

Inc.),

13.90%, 01/31/24

................

3

91,539

419,057

Construction

&

Engineering

—

0.0%

Citigroup,

Inc.

(Vinci

SA),

19.25%, 02/09/24

.

1

145,884

Construction

Materials

—

0.0%

JPMorgan

Structured

Products

BV

(Martin

Marietta

Materials,

Inc.),

14.12%, 02/15/24

—

(o)

164,323

Nomura

Holdings,

Inc.

(Vulcan

Materials

Co.),

9.92%, 02/16/24

.................

1

147,450

311,773

Consumer

Finance

—

0.1%

Citigroup,

Inc.

(Capital

One

Financial

Corp.),

20.08%, 01/24/24

................

1

74,601

Nomura

Holdings,

Inc.

(Ally

Financial,

Inc.),

21.85%, 01/19/24

................

8

224,718

Royal

Bank

of

Canada

(American

Express

Co.),

11.75%, 01/26/24

(b)

...............

1

221,967

521,286

Consumer

Staples

Distribution

&

Retail

—

0.1%

Citigroup,

Inc.

(Performance

Food

Group

Co.),

15.28%, 01/09/24

................

1

91,705

Citigroup,

Inc.

(Target

Corp.),

14.25%, 01/11/24

3

368,065

Citigroup,

Inc.

(US

Foods

Holding

Corp.),

12.50%, 01/09/24

................

2

91,642

JPMorgan

Structured

Products

BV

(Tesco

plc),

7.84%, 01/10/24

.................

GBP

30

111,569

Royal

Bank

of

Canada

(Kroger

Co.

(The)),

10.23%, 02/29/24

(b)

...............

USD

2

109,626

Royal

Bank

of

Canada

(Sysco

Corp.),

12.79%, 01/31/24

(b)

...............

2

145,844

918,451

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

31

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Containers

&

Packaging

—

0.0%

UBS

AG

(International

Paper

Co.),

16.80%, 01/31/24

................

USD

3

$

90,216

Distributors

—

0.0%

Nomura

Holdings,

Inc.

(Genuine

Parts

Co.),

12.92%, 01/05/24

................

1

126,209

Diversified

Telecommunication

Services

—

0.1%

Royal

Bank

of

Canada

(AT&T,

Inc.),

19.05%, 01/25/24

(b)

...............

22

360,336

Electric

Utilities

—

0.1%

JPMorgan

Structured

Products

BV

(NextEra

Energy,

Inc.),

18.25%, 01/25/24

.......

6

330,800

Mizuho

Markets

Cayman

LP

(American

Electric

Power

Co.,

Inc.),

15.12%, 02/23/24

.....

2

141,164

471,964

Electrical

Equipment

—

0.0%

Barclays

Bank

plc

(Eaton

Corp.

plc),

13.16%, 02/08/24

................

1

183,532

Electronic

Equipment,

Instruments

&

Components

—

0.1%

Citigroup,

Inc.

(Flex

Ltd.),

12.16%, 01/25/24

.

15

412,131

Royal

Bank

of

Canada

(Flex

Ltd.),

11.28%, 01/08/24

(b)

...............

3

92,505

504,636

Energy

Equipment

&

Services

—

0.0%

Citigroup,

Inc.

(Baker

Hughes

Co.),

18.01%, 01/23/24

................

3

118,926

Royal

Bank

of

Canada

(Schlumberger

NV),

19.88%, 01/19/24

(b)

...............

1

71,210

190,136

Entertainment

—

0.1%

Barclays

Bank

plc

(Walt

Disney

Co.

(The)),

9.70%, 01/08/24

.................

2

175,709

JPMorgan

Structured

Products

BV

(Netflix,

Inc.),

13.21%, 01/19/24

.............

1

448,362

Mizuho

Markets

Cayman

LP

(Live

Nation

Entertainment,

Inc.),

16.53%, 02/23/24

..

1

108,982

733,053

Financial

Services

—

0.1%

BNP

Paribas

SA

(Block,

Inc.),

22.98%, 02/23/24

(b)

...............

2

117,631

BNP

Paribas

SA

(Fidelity

National

Information

Services,

Inc.),

19.53%, 01/09/24

......

2

111,923

BNP

Paribas

SA

(Fiserv,

Inc.),

5.67%, 02/07/24

(b)

................

4

511,030

740,584

Food

Products

—

0.1%

BNP

Paribas

SA

(Conagra

Brands,

Inc.),

10.27%, 01/05/24

(b)

...............

4

126,593

BNP

Paribas

SA

(Mondelez

International,

Inc.),

9.03%, 01/31/24

.................

3

180,176

JPMorgan

Structured

Products

BV

(Kraft

Heinz

Co.

(The)),

12.17%, 02/15/24

.........

5

164,920

471,689

Ground

Transportation

—

0.1%

Mizuho

Markets

Cayman

LP

(Ryder

System,

Inc.),

13.13%, 02/14/24

.............

1

109,103

Royal

Bank

of

Canada

(CSX

Corp.),

8.39%, 01/25/24

(b)

................

4

147,713

Royal

Bank

of

Canada

(Uber

Technologies,

Inc.),

16.01%, 01/08/24

(b)

...........

2

95,768

352,584

Security

Par

(000)

Par

(000)

Value

Health

Care

Equipment

&

Supplies

—

0.1%

Barclays

Bank

plc

(Stryker

Corp.),

11.85%, 01/31/24

................

USD

1

$

146,388

Citigroup,

Inc.

(Boston

Scientific

Corp.),

12.41%, 02/01/24

................

4

235,387

Citigroup,

Inc.

(Dexcom,

Inc.),

25.45%, 02/09/24

................

2

151,222

Nomura

Holdings,

Inc.

(Boston

Scientific

Corp.),

8.30%, 02/02/24

............

6

339,874

872,871

Health

Care

Providers

&

Services

—

0.4%

Barclays

Bank

plc

(Cigna

Group

(The)),

11.38%, 02/02/24

................

1

199,583

Barclays

Bank

plc

(CVS

Health

Corp.),

16.33%, 02/08/24

................

3

239,295

BMO

Capital

Markets

Corp.

(Amplifon

SpA),

8.92%, 01/25/24

.................

—

(o)

73,326

BNP

Paribas

SA

(Elevance

Health,

Inc.),

11.80%, 01/25/24

(b)

...............

2

714,539

Citigroup,

Inc.

(Laboratory

Corp.

of

America

Holdings),

11.64%, 02/16/24

.........

1

126,465

JPMorgan

Structured

Products

BV

(UnitedHealth

Group,

Inc.),

7.41%, 01/12/24

2

1,204,431

Mizuho

Markets

Cayman

LP

(McKesson

Corp.),

10.00%, 02/01/24

................

—

(o)

176,641

Royal

Bank

of

Canada

(Humana,

Inc.),

12.49%, 02/02/24

(b)

...............

—

(o)

144,321

2,878,601

Hotels,

Restaurants

&

Leisure

—

0.3%

BNP

Paribas

SA

(Booking

Holdings,

Inc.),

13.22%, 02/22/24

(b)

...............

—

(o)

111,862

BNP

Paribas

SA

(Darden

Restaurants,

Inc.),

10.82%, 01/09/24

................

1

92,322

BNP

Paribas

SA

(Expedia

Group,

Inc.),

13.49%, 02/09/24

(b)

...............

1

151,864

Citigroup,

Inc.

(Chipotle

Mexican

Grill,

Inc.),

11.88%, 02/07/24

................

—

(o)

124,581

Citigroup,

Inc.

(McDonald's

Corp.),

5.84%, 01/31/24

.................

2

496,667

JPMorgan

Structured

Products

BV

(Flight

Centre

Travel

Group

Ltd.),

11.08%, 02/08/24

—

(o)

73,487

Mizuho

Markets

Cayman

LP

(Airbnb,

Inc.),

18.72%, 02/14/24

................

1

129,824

Mizuho

Markets

Cayman

LP

(Hilton

Worldwide

Holdings,

Inc.),

10.82%, 02/09/24

......

1

223,496

Mizuho

Markets

Cayman

LP

(Las

Vegas

Sands

Corp.),

19.17%, 01/25/24

...........

3

149,229

Mizuho

Markets

Cayman

LP

(Starbucks

Corp.),

9.57%, 02/02/24

.................

3

248,685

Royal

Bank

of

Canada

(MGM

Resorts

International),

17.61%, 01/08/24

(b)

.....

5

187,043

UBS

AG

(Wyndham

Hotels

&

Resorts,

Inc.),

11.60%, 02/15/24

................

1

89,871

UBS

AG

(Yum!

Brands,

Inc.),

9.30%, 02/08/24

1

162,628

2,241,559

Household

Durables

—

0.0%

BNP

Paribas

SA

(DR

Horton,

Inc.),

16.66%, 01/24/24

(b)

...............

1

92,653

Citigroup,

Inc.

(Mohawk

Industries,

Inc.),

20.51%, 02/09/24

................

1

56,121

JPMorgan

Structured

Products

BV

(PulteGroup,

Inc.),

18.39%, 01/31/24

.............

1

113,370

262,144

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

32

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Household

Products

—

0.1%

Nomura

Holdings,

Inc.

(Procter

&

Gamble

Co.

(The)),

8.42%, 01/24/24

............

USD

3

$

431,754

Royal

Bank

of

Canada

(Church

&

Dwight

Co.,

Inc.),

8.59%, 01/08/24

(b)

............

1

110,052

Royal

Bank

of

Canada

(Henkel

AG

&

Co.

KGaA),

6.17%, 01/10/24

(b)

...........

EUR

1

109,487

651,293

Industrial

Conglomerates

—

0.1%

JPMorgan

Structured

Products

BV

(General

Electric

Co.),

12.20%, 01/24/24

.......

USD

1

129,178

Royal

Bank

of

Canada

(Siemens

AG),

13.26%, 01/10/24

(b)

...............

EUR

1

228,781

UBS

AG

(Honeywell

International,

Inc.),

11.69%, 02/02/24

................

USD

1

256,107

614,066

Insurance

—

0.1%

BNP

Paribas

SA

(Admiral

Group

plc),

12.88%, 01/05/24

(b)

...............

2

141,536

BNP

Paribas

SA

(MetLife,

Inc.),

15.30%, 02/01/24

(b)

...............

2

146,577

BNP

Paribas

SA

(W

R

Berkley

Corp.),

7.45%, 01/05/24

(b)

................

2

126,732

Goldman

Sachs

International

(Marsh

&

McLennan

Cos.,

Inc.),

4.91%, 01/26/24

..

1

117,470

JPMorgan

Structured

Products

BV

(Chubb

Ltd.),

7.64%, 01/31/24

.............

1

177,594

Mizuho

Markets

Cayman

LP

(Progressive

Corp.

(The)),

11.91%, 01/25/24

...........

1

138,696

Nomura

Holdings,

Inc.

(Everest

Group

Ltd.),

16.15%, 02/08/24

................

—

(o)

107,779

956,384

Interactive

Media

&

Services

—

0.2%

Barclays

Bank

plc

(CAR

Group

Ltd.),

19.60%, 01/08/24

................

—

(o)

49,682

BMO

Capital

Markets

Corp.

(Meta

Platforms,

Inc.),

15.57%, 02/01/24

.............

1

270,187

Citigroup,

Inc.

(Meta

Platforms,

Inc.),

18.76%, 02/02/24

................

1

282,590

Mizuho

Markets

Cayman

LP

(Alphabet,

Inc.),

13.71%, 02/01/24

................

5

720,634

Mizuho

Markets

Cayman

LP

(CAR

Group

Ltd.),

20.20%, 02/14/24

................

—

(o)

81,576

1,404,669

IT

Services

—

0.1%

Citigroup,

Inc.

(Gartner,

Inc.),

10.00%, 02/07/24

—

(o)

146,527

Mizuho

Markets

Cayman

LP

(Akamai

Technologies,

Inc.),

8.47%, 02/15/24

....

1

71,612

Mizuho

Markets

Cayman

LP

(VeriSign,

Inc.),

7.37%, 02/09/24

.................

1

138,847

Nomura

Holdings,

Inc.

(Akamai

Technologies,

Inc.),

8.44%, 01/05/24

.............

1

147,156

Nomura

Holdings,

Inc.

(Snowflake,

Inc.),

19.25%, 03/01/24

................

1

149,785

653,927

Life

Sciences

Tools

&

Services

—

0.0%

JPMorgan

Structured

Products

BV

(Danaher

Corp.),

13.69%, 01/24/24

...........

1

186,624

Nomura

Holdings,

Inc.

(Bruker

Corp.),

18.91%, 02/09/24

................

2

127,789

314,413

Security

Par

(000)

Par

(000)

Value

Machinery

—

0.2%

Barclays

Bank

plc

(Stanley

Black

&

Decker,

Inc.),

20.26%, 02/02/24

.............

USD

1

$

92,968

BNP

Paribas

SA

(Ingersoll

Rand,

Inc.),

13.09%, 01/23/24

................

2

128,178

BNP

Paribas

SA

(Oshkosh

Corp.),

15.96%, 01/31/24

(b)

...............

1

147,383

Citigroup,

Inc.

(Pentair

plc),

12.66%, 01/08/24

2

129,170

JPMorgan

Structured

Products

BV

(PACCAR,

Inc.),

9.07%, 01/24/24

(b)(c)

...........

2

224,212

Mizuho

Markets

Cayman

LP

(Parker-Hannifin

Corp.),

14.12%, 02/01/24

...........

—

(o)

148,554

Nomura

Holdings,

Inc.

(Flowserve

Corp.),

17.96%, 02/22/24

................

4

149,649

Nomura

Holdings,

Inc.

(Otis

Worldwide

Corp.),

6.83%, 02/02/24

.................

2

166,526

1,186,640

Metals

&

Mining

—

0.0%

Barclays

Bank

plc

(Freeport-McMoRan,

Inc.),

24.07%, 01/25/24

................

4

151,199

Barclays

Bank

plc

(Nucor

Corp.),

15.77%, 01/26/24

................

1

111,357

262,556

Oil,

Gas

&

Consumable

Fuels

—

0.1%

BNP

Paribas

SA

(APA

Corp.),

20.15%, 02/22/24

(b)

...............

2

80,430

BNP

Paribas

SA

(Marathon

Oil

Corp.),

19.19%, 02/15/24

(b)

...............

4

107,724

Nomura

Holdings,

Inc.

(Devon

Energy

Corp.),

27.22%, 01/05/24

................

2

108,645

Nomura

Holdings,

Inc.

(Occidental

Petroleum

Corp.),

15.44%, 01/05/24

...........

2

119,672

Royal

Bank

of

Canada

(BP

plc),

13.27%, 01/10/24

(b)

...............

10

347,545

Royal

Bank

of

Canada

(Crescent

Point

Energy

Corp.),

8.00%, 01/10/24

............

GBP

4

111,145

875,161

Passenger

Airlines

—

0.0%

Royal

Bank

of

Canada

(Delta

Air

Lines,

Inc.),

15.35%, 01/12/24

(b)

...............

USD

2

94,616

Personal

Care

Products

—

0.1%

(b)

Royal

Bank

of

Canada

(Beiersdorf

AG),

6.82%, 01/10/24

.................

EUR

1

112,156

Royal

Bank

of

Canada

(Estee

Lauder

Cos.,

Inc.

(The)),

8.08%, 01/10/24

............

1

146,869

Royal

Bank

of

Canada

(L'Oreal

SA),

10.12%, 01/10/24

................

1

374,076

633,101

Pharmaceuticals

—

0.0%

Barclays

Bank

plc

(Elanco

Animal

Health,

Inc.),

28.10%, 01/09/24

................

USD

8

94,916

Citigroup,

Inc.

(Pfizer,

Inc.),

21.59%, 01/31/24

3

82,795

177,711

Professional

Services

—

0.0%

BNP

Paribas

SA

(Verisk

Analytics,

Inc.),

9.34%, 01/05/24

(b)

................

1

124,667

Mizuho

Markets

Cayman

LP

(Automatic

Data

Processing,

Inc.),

10.17%, 01/25/24

....

1

142,713

267,380

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

33

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Semiconductors

&

Semiconductor

Equipment

—

0.0%

Citigroup,

Inc.

(Intel

Corp.),

19.24%, 01/26/24

USD

4

$

150,243

Goldman

Sachs

International

(NXP

Semiconductors

NV),

15.30%, 01/31/24

.

1

130,248

280,491

Software

—

0.6%

BNP

Paribas

SA

(Crowdstrike

Holdings,

Inc.),

18.39%, 03/07/24

(b)

...............

1

147,965

BNP

Paribas

SA

(Intuit,

Inc.),

13.25%, 02/23/24

—

(o)

181,975

BNP

Paribas

SA

(Palo

Alto

Networks,

Inc.),

18.67%, 01/11/24

(b)

...............

—

(o)

73,566

Citigroup,

Inc.

(Fair

Isaac

Corp.),

12.76%, 01/08/24

................

—

(o)

93,105

Mizuho

Markets

Cayman

LP

(BILL

Holdings,

Inc.),

30.52%, 02/01/24

.............

2

135,075

Mizuho

Markets

Cayman

LP

(Microsoft

Corp.),

9.36%, 01/25/24

.................

2

707,954

Nomura

Holdings,

Inc.

(Salesforce,

Inc.),

9.97%, 03/01/24

.................

1

282,436

Nomura

Holdings,

Inc.

(Workday,

Inc.),

11.44%, 02/27/24

................

1

144,369

Royal

Bank

of

Canada

(C3.ai,

Inc.),

6.46%, 01/10/24

(b)

................

EUR

1

186,127

Royal

Bank

of

Canada

(SAP

SE),

9.28%, 01/10/24

(b)

................

2

367,595

Royal

Bank

of

Canada

(Synopsys,

Inc.),

9.97%, 02/15/24

(b)

................

USD

1

259,581

UBS

AG

(Microsoft

Corp.),

11.50%, 01/24/24

3

1,282,262

UBS

AG

(Roper

Technologies,

Inc.),

5.70%, 01/26/24

.................

—

(o)

183,651

UBS

AG

(ServiceNow,

Inc.),

16.90%, 01/25/24

1

590,632

4,636,293

Specialty

Retail

—

0.2%

Citigroup,

Inc.

(AutoNation,

Inc.),

20.32%, 02/16/24

................

1

146,467

JPMorgan

Structured

Products

BV

(O'Reilly

Automotive,

Inc.),

10.67%, 02/08/24

....

—

(o)

244,875

JPMorgan

Structured

Products

BV

(Ross

Stores,

Inc.),

9.33%, 02/28/24

........

1

144,847

JPMorgan

Structured

Products

BV

(TJX

Cos.,

Inc.

(The)),

7.82%, 01/11/24

.........

2

182,136

Mizuho

Markets

Cayman

LP

(Williams-Sonoma,

Inc.),

15.72%, 01/11/24

.............

1

130,504

Royal

Bank

of

Canada

(O'Reilly

Automotive,

Inc.),

8.32%, 01/08/24

(b)

............

—

(o)

84,686

Royal

Bank

of

Canada

(Ulta

Beauty,

Inc.),

8.01%, 01/18/24

(b)

................

—

(o)

148,750

1,082,265

Technology

Hardware,

Storage

&

Peripherals

—

0.2%

BNP

Paribas

SA

(Apple,

Inc.),

9.51%, 02/02/24

(b)

................

6

1,102,596

BNP

Paribas

SA

(Hewlett

Packard

Enterprise

Co.),

13.45%, 02/29/24

(b)

............

6

108,011

Mizuho

Markets

Cayman

LP

(Apple,

Inc.),

8.56%, 02/01/24

.................

2

356,182

1,566,789

Textiles,

Apparel

&

Luxury

Goods

—

0.1%

Goldman

Sachs

International

(Skechers

USA,

Inc.),

16.91%, 02/02/24

.............

1

73,050

JPMorgan

Structured

Products

BV

(Skechers

USA,

Inc.),

14.33%, 02/01/24

.........

1

73,933

Royal

Bank

of

Canada

(adidas

AG),

19.36%, 01/10/24

(b)

...............

EUR

1

112,656

Security

Par

(000)

Par

(000)

Value

Textiles,

Apparel

&

Luxury

Goods

(continued)

Royal

Bank

of

Canada

(Tapestry,

Inc.),

20.51%, 01/08/24

(b)

...............

USD

5

$

151,263

410,902

Tobacco

—

0.1%

Royal

Bank

of

Canada

(Philip

Morris

International,

Inc.),

12.35%, 02/09/24

(b)

..

4

365,510

Trading

Companies

&

Distributors

—

0.0%

Barclays

Bank

plc

(Ferguson

plc),

15.38%, 01/05/24

................

1

129,761

JPMorgan

Structured

Products

BV

(United

Rentals,

Inc.),

20.65%, 01/25/24

......

—

(o)

151,641

281,402

Wireless

Telecommunication

Services

—

0.0%

UBS

AG

(T-Mobile

US,

Inc.),

8.40%, 02/02/24

2

240,160

Total

Equity-Linked

Notes

—

4.9%

(Cost:

$35,297,805)

..............................

36,275,850

Floating

Rate

Loan

Interests

Aerospace

&

Defense

—

0.2%

(a)

Atlas

CC

Acquisition

Corp.,

1st

Lien

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.25%),

9.90%

,

 05/25/28

...........

230

213,128

Atlas

CC

Acquisition

Corp.,

1st

Lien

Term

Loan

C,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.25%),

9.90%

,

 05/25/28

...........

42

38,933

Bleriot

U.S.

Bidco,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

4.00%),

9.61%

,

 10/30/28

..

36

35,934

Cobham

Ultra

SeniorCo

SARL,

Facility

Term

Loan

B,

(6-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

9.36%

,

 08/03/29

.......

48

47,604

Dynasty

Acquisition

Co.,

Inc.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

4.00%),

9.36%

,

 08/24/28

.................

261

261,054

Dynasty

Acquisition

Co.,

Inc.,

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

+

4.00%),

9.36%

,

 08/24/28

.................

112

111,880

Peraton

Corp.,

1st

Lien

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.75%),

9.21%

,

 02/01/28

.................

162

162,022

Peraton

Corp.,

2nd

Lien

Term

Loan

B1,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

7.75%),

13.22%

,

 02/01/29

................

73

72,199

Setanta

Aircraft

Leasing

DAC,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

2.00%),

7.61%

,

 11/05/28

.................

144

144,360

TransDigm

Inc.,

Term

Loan

J,

(1-mo.

LIBOR

USD

+

3.25%),

8.60%

,

 02/14/31

......

38

38,142

TransDigm,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

3.25%),

8.60%

,

 08/24/28

.....

51

50,807

TransDigm,

Inc.,

Term

Loan

H,

(3-mo.

CME

Term

SOFR

+

3.25%),

8.60%

,

 02/22/27

..

247

247,949

1,424,012

Automobile

Components

—

0.0%

(a)

Adient

US

LLC,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

3.25%),

8.72%

,

 04/10/28

..

40

39,952

Clarios

Global

LP,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.75%),

9.11%

,

 05/06/30

.................

169

168,788

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

34

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Automobile

Components

(continued)

Tenneco,

Inc.,

1st

Lien

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

5.00%),

10.45%

-

10.47%

,

 11/17/28

..........

USD

93

$

81,788

290,528

Automobiles

—

0.0%

Dealer

Tire

Financial

LLC,

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.50%),

9.86%

,

 12/14/27

(a)

..........

118

117,980

Beverages

—

0.1%

(a)

Naked

Juice

LLC,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.70%

,

 01/24/29

.................

307

295,757

Naked

Juice

LLC,

2nd

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.01%

Cap

+

6.00%),

11.45%

,

 01/24/30

................

200

159,826

455,583

Broadline

Retail

—

0.1%

(a)

Fanatics

Commerce

Intermediate

Holdco

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.72%

,

 11/24/28

(e)

.

65

64,632

New

SK

Holdco

Sub

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

6.75%),

12.21%

,

 06/30/27

................

161

159,257

Pug

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

3.50%),

8.97%

,

 02/12/27

.....

236

231,618

Pug

LLC,

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.25%),

9.72%

,

 02/12/27

(e)

................

49

48,386

Sally

Holdings

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.61%

,

 02/28/30

..

39

38,816

Woof

Holdings,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.75%),

9.36%

,

 12/21/27

.................

31

25,044

567,753

Building

Products

—

0.1%

(a)

AZZ,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.75%),

9.11%

,

 05/13/29

47

46,918

Cornerstone

Building

Brands,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.71%

,

 04/12/28

...........

48

48,251

CP

Atlas

Buyer,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

3.75%),

4.25%

-

9.21%

,

 11/23/27

.................

95

93,542

CP

Iris

Holdco

I,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.75%),

9.21%

,

 10/02/28

...........

22

21,693

CPG

International

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

7.96%

,

 04/28/29

.................

73

73,112

Jeld-Wen,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.72%

,

 07/28/28

.....

69

68,807

Wilsonart

LLC,

Term

Loan

E,

(3-mo.

CME

Term

SOFR

at

1.00%

Cap

+

3.25%),

8.70%

,

 12/31/26

.................

196

196,703

549,026

Security

Par

(000)

Par

(000)

Value

Capital

Markets

—

0.1%

(a)

Aretec

Group,

Inc.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

4.50%),

9.96%

,

 08/09/30

..

USD

42

$

41,804

Ascensus

Group

Holdings,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.97%

,

 08/02/28

.......

121

120,097

Ascensus

Group

Holdings,

Inc.,

2nd

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

6.50%),

7.00%

,

 08/02/29

......

46

44,093

Axalta

Coating

Systems

Dutch

Holding

B

BV,

Facility

Term

Loan

B5,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

7.85%

,

 12/20/29

.................

106

106,368

Azalea

TopCo,

Inc.,

1st

Lien

Term

Loan

(1-mo.

CME

Term

SOFR

+

3.50%),

8.97%, 07/24/26

...............

85

84,069

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.75%),

9.22%, 07/24/26

.........

87

86,144

Castlelake

Aviation

One

DAC,

Term

Loan

 10/22/26

(p)

.....................

137

137,400

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

8.13%, 10/22/27

.........

45

44,578

Focus

Financial

Partners

LLC,

Term

Loan

B4,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

7.86%

,

 06/30/28

...........

99

99,274

Focus

Financial

Partners

LLC,

Term

Loan

B6,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.86%

,

 06/30/28

...........

55

54,931

Learning

Care

Group

US

No.

2,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.75%),

10.10%

-

10.14%

,

 08/11/28

16

16,032

Osaic

Holdings,

Inc.,

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

+

4.50%),

9.86%

,

 08/17/28

.................

102

102,428

937,218

Chemicals

—

0.2%

(a)

ARC

Falcon

I,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.96%

,

 09/30/28

.................

91

90,174

Aruba

Investments

Holdings

LLC,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.00%),

9.46%

,

 11/24/27

.......

32

31,304

Ascend

Performance

Materials

Operations

LLC,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.75%),

10.32%

,

 08/27/26

.

63

60,225

Chemours

Co.

(The),

Term

Loan

B3,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.86%

,

 08/18/28

.................

85

84,533

CPC

Acquisition

Corp.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.75%),

9.36%

,

 12/29/27

...........

49

39,020

Derby

Buyer

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

4.25%),

9.60%

,

 11/01/30

(e)

................

141

141,000

Discovery

Purchaser

Corp.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.38%),

9.77%

,

 10/04/29

.......

67

66,332

Ecovyst

Catalyst

Technologies

LLC,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

7.98%

,

 06/09/28

...........

98

98,048

Element

Solutions,

Inc.,

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

+

2.00%),

7.36%

,

 12/18/30

(e)

................

135

135,311

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

35

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Chemicals

(continued)

H.B.

Fuller

Co.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.61%

,

 02/15/30

.................

USD

21

$

20,874

Herens

Holdco

SARL,

Facility

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.93%),

9.37%

,

 07/03/28

...........

73

66,131

Ineos

US

Finance

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.50%),

8.96%

,

 02/18/30

.................

40

39,800

LSF11

A5

Holdco

LLC,

Term

Loan

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.97%, 10/15/28

.........

134

133,724

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.25%),

9.71%, 10/15/28

.........

19

18,937

Lummus

Technology

Holdings

V

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

3.50%),

8.97%

,

 06/30/27

.................

22

21,829

Momentive

Performance

Materials,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

4.50%),

9.86%

,

 03/29/28

.................

156

150,378

Nouryon

Finance

B.V.,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

4.00%),

9.47%

,

 04/03/28

..

65

65,020

Olympus

Water

US

Holding

Corp.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

5.00%),

10.35%

,

 11/09/28

...........

63

63,078

Oxea

Holding

Vier

GmbH,

Term

Loan

B2,

(3-mo.

CME

Term

SOFR

+

3.50%),

8.93%

,

 10/14/24

.................

110

105,912

SCIH

Salt

Holdings,

Inc.,

1st

Lien

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

at

0.75%

Floor

+

4.00%),

9.46%

-

9.47%

,

 03/16/27

....

29

29,019

Sparta

US

HoldCo

LLC,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Floor

+

3.25%),

8.72%

,

 08/02/28

...........

123

122,288

WR

Grace

Holdings

LLC,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.75%),

9.36%

,

 09/22/28

.................

107

107,368

1,690,305

Commercial

Services

&

Supplies

—

0.2%

(a)

Action

Environmental

Group,

Inc.,

(The),

Delayed

Draw

Term

Loan,

10/24/30

(e)(p)

..

7

7,017

Action

Environmental

Group,

Inc.,

(The),

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.50%),

9.88%

,

 10/24/30

(e)

......

44

44,108

Allied

Universal

Holdco

LLC,

Term

Loan

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.75%),

9.21%, 05/12/28

.........

218

217,240

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.75%),

10.11%, 05/12/28

.........

23

22,910

Aramark

Intermediate

HoldCo

Corp.,

Term

Loan

B5,

(1-mo.

CME

Term

SOFR

+

2.50%),

7.97%

,

 04/06/28

.................

81

80,620

Aramark

Intermediate

HoldCo

Corp.,

Term

Loan

B6,

(1-mo.

CME

Term

SOFR

+

2.50%),

7.97%

,

 06/22/30

.................

50

49,803

Asplundh

Tree

Expert

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.21%

,

 09/07/27

.................

142

142,110

Clean

Harbors,

Inc.,

Term

Loan,

0.00%

,

 10/08/28

.................

63

62,899

Covanta

Holding

Corp.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

7.86%

,

 11/30/28

.................

105

104,721

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

Covanta

Holding

Corp.,

Term

Loan

C,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

2.50%),

7.86%

,

 11/30/28

.................

USD

8

$

8,208

GFL

Environmental,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

7.91%

,

 05/31/27

.................

59

59,480

LABL,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

5.00%),

10.46%

,

 10/29/28

................

65

61,885

Minimax

Viking

GmbH,

Facility

Term

Loan

B1,

07/31/28

(p)

.....................

14

13,956

NEP

Group,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.25%),

8.71%

,

 10/20/25

.................

104

97,855

PECF

USS

Intermediate

Holding

III

Corp.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.25%),

9.89%

,

 12/15/28

.......

87

67,400

Prime

Security

Services

Borrower

LLC,

1st

Lien

Term

Loan

B1,

(3-mo.

CME

Term

SOFR

+

2.50%),

7.83%

,

 10/13/30

...........

60

60,140

Tempo

Acquisition

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.75%),

8.11%

,

 08/31/28

.................

318

319,388

TruGreen

LP,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.00%),

9.46%

,

 11/02/27

.................

134

129,266

Viad

Corp.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

5.00%),

10.47%

,

 07/30/28

................

94

93,873

1,642,879

Communications

Equipment

—

0.0%

(a)

Ciena

Corp.

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.00%),

7.36%

,

 10/24/30

.....

114

114,089

ViaSat,

Inc.,

Term

Loan

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.50%),

9.86%, 03/02/29

.........

83

81,319

9.96%, 05/30/30

.................

52

50,768

246,176

Construction

&

Engineering

—

0.1%

(a)

Brand

Industrial

Services,

Inc.,

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

5.50%),

10.88%

,

 08/01/30

...........

256

254,527

Legence

Holdings

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.50%),

8.96%

,

 12/16/27

.................

16

15,915

Pike

Corp.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.00%),

8.47%

,

 01/21/28

.....

80

80,143

USIC

Holdings,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.50%),

9.11%

,

 05/12/28

............

116

114,650

465,235

Construction

Materials

—

0.1%

(a)

New

AMI

I

LLC,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

6.00%),

11.36%

,

 03/08/29

................

91

78,211

Oscar

AcquisitionCo

LLC,

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.50%),

9.95%

,

 04/29/29

.................

97

95,552

Quikrete

Holdings,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.75%),

8.22%

,

 03/19/29

.................

40

39,897

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

36

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Construction

Materials

(continued)

Smyrna

Ready

Mix

Concrete

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.50%),

8.86%

,

 04/02/29

.................

USD

35

$

35,530

Standard

Building

Solutions,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.72%

,

 09/22/28

...........

108

108,303

Summit

Materials

LLC,

Term

Loan

B,

11/30/28

(p)

51

51,160

408,653

Consumer

Staples

Distribution

&

Retail

—

0.0%

US

Foods,

Inc.,

Term

Loan

B

(a)

(1-mo.

CME

Term

SOFR

+

2.00%),

7.47%, 09/13/26

...............

150

149,900

(1-mo.

CME

Term

SOFR

+

2.50%),

7.97%, 11/22/28

...............

45

45,319

195,219

Containers

&

Packaging

—

0.1%

(a)

Charter

Next

Generation,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.75%),

9.22%

,

 12/01/27

.......

263

263,640

Mauser

Packaging

Solutions

Holding

Co.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

4.00%),

9.35%

,

 08/14/26

.................

88

87,804

Pactiv

Evergreen,

Inc.,

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

+

3.25%),

8.72%

,

 02/05/26

.................

28

28,145

Reynolds

Consumer

Products

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.21%

,

 02/04/27

.................

14

13,679

Trident

TPI

Holdings,

Inc.,

Term

Loan

B3,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.00%),

9.61%

,

 09/15/28

...........

109

108,604

501,872

Distributors

—

0.0%

(a)

American

Builders

&

Contractors

Supply

Co.,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.00%),

7.46%

,

 01/15/27

...........

139

139,681

PAI

Holdco,

Inc.,

1st

Lien

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.75%),

9.39%

,

 10/28/27

.................

133

123,597

263,278

Diversified

Consumer

Services

—

0.1%

(a)

Ascend

Learning

LLC,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.96%

,

 12/11/28

............

42

41,185

Ascend

Learning

LLC,

2nd

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

5.75%),

11.21%

,

 12/10/29

...........

104

88,638

Bright

Horizons

Family

Solutions

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.72%

,

 11/24/28

.......

101

101,169

Kuehg

Corp.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

5.00%),

10.35%

,

 06/12/30

................

94

94,063

Sotheby's,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.50%),

10.16%

,

 01/15/27

194

191,240

Spring

Education

Group,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

1.00%

Cap

+

4.50%),

9.85%

,

 09/29/30

...........

111

110,880

Veritas

US,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

1.00%

Cap

+

5.00%),

10.47%

,

 09/01/25

................

156

129,346

Security

Par

(000)

Par

(000)

Value

Diversified

Consumer

Services

(continued)

Wand

Newco

3,

Inc.,

1st

Lien

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

2.75%),

8.22%

,

 02/05/26

.................

USD

125

$

124,990

WCG

Purchaser

Corp.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

1.00%

Cap

+

4.00%),

9.47%

,

 01/08/27

...........

85

85,345

966,856

Diversified

REITs

—

0.0%

RHP

Hotel

Properties,

LP,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

2.75%),

8.11%

,

 05/18/30

(a)

................

60

59,567

Diversified

Telecommunication

Services

—

0.2%

(a)

Altice

Financing

SA,

Term

Loan

(3-mo.

LIBOR

USD

+

2.75%),

8.41%, 07/15/25

...............

5

4,774

(3-mo.

LIBOR

USD

+

2.75%),

8.41%, 01/31/26

(e)

..............

83

81,433

Altice

France

SA,

Term

Loan

B14,

(3-mo.

CME

Term

SOFR

+

5.50%),

10.89%

,

 08/15/28

.

144

129,267

Connect

Finco

SARL,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

1.00%

Cap

+

3.50%),

8.86%

,

 12/11/26

.................

434

433,991

Consolidated

Communications,

Inc.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.50%),

8.97%

,

 10/02/27

..........

34

31,764

Iridium

Satellite

LLC,

Term

Loan

B3,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

2.50%),

7.86%

,

 09/20/30

.................

192

192,591

Level

3

Financing,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.22%

,

 03/01/27

.................

96

91,169

Lumen

Technologies,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.72%

,

 03/15/27

.................

138

94,046

Orbcomm,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Floor

+

4.25%),

9.72%

-

9.90%

,

 09/01/28

...........

87

82,533

Radiate

Holdco

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.25%),

8.72%

,

 09/25/26

.................

224

178,196

Virgin

Media

Bristol

LLC,

Facility

Term

Loan

Q,

(1-mo.

CME

Term

SOFR

+

3.25%),

8.73%

,

 01/31/29

.................

44

43,855

Zayo

Group

Holdings,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.00%),

8.47%

,

 03/09/27

.................

328

280,677

1,644,296

Electrical

Equipment

—

0.0%

Arcline

FM

Holdings

LLC,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.75%),

10.36%

,

 06/23/28

(a)

..........

135

134,717

Electronic

Equipment,

Instruments

&

Components

—

0.0%

Coherent

Corp.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.75%),

8.22%

,

 07/02/29

(a)

................

97

97,049

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

37

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Entertainment

—

0.2%

(a)

AMC

Entertainment

Holdings,

Inc.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

3.00%),

8.47%

,

 04/22/26

.................

USD

136

$

113,312

Aristocrat

Technologies,

Inc.,

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.70%

,

 05/24/29

...........

24

23,505

Cirque

du

Soleil

Canada,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.25%),

9.60%

,

 03/08/30

...........

66

66,165

City

Football

Group

Ltd.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.00%),

8.47%

,

 07/21/28

.................

132

130,754

Creative

Artists

Agency

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

3.50%),

8.86%

,

 11/27/28

.................

143

143,511

Formula

One

Management

Ltd.,

Facility

1st

Lien

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.60%

,

 01/15/30

136

136,256

Live

Nation

Entertainment,

Inc.,

Term

Loan

B4,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.21%

,

 10/19/26

.................

243

242,807

Playtika

Holding

Corp.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

2.75%),

8.22%

,

 03/13/28

.................

121

121,089

Renaissance

Holding

Corp.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

4.75%),

10.11%

,

 04/05/30

.....

5

4,523

SMG

US

Midco

2,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

+

2.50%),

8.14%

,

 01/23/25

.................

116

115,588

UFC

Holdings

LLC,

1st

Lien

Term

Loan

B3,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

2.75%),

8.40%

,

 04/29/26

...........

92

92,250

William

Morris

Endeavor

Entertainment

LLC,

1st

Lien

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

2.75%),

8.22%

,

 05/18/25

.....

197

197,367

WMG

Acquisition

Corp.,

Term

Loan

G,

(1-mo.

CME

Term

SOFR

+

2.13%),

7.60%

,

 01/20/28

.................

216

215,924

1,603,051

Financial

Services

—

0.2%

(a)

ABG

Intermediate

Holdings

2

LLC,

1st

Lien

Term

Loan

B1,

8.96%

,

 12/21/28

.......

82

82,734

Belron

Finance

LLC,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

2.25%),

7.90%

,

 10/30/26

..

57

57,128

Belron

Finance

US

LLC,

Term

Loan

 04/13/28

(e)(p)

....................

98

98,241

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

8.00%, 04/18/29

.........

31

30,884

Belron

Group

SA,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.43%),

8.07%

,

 04/13/28

.................

59

59,141

Cogeco

Communications

Finance

LP,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.50%),

7.97%

,

 09/01/28

.................

137

134,988

Deerfield

Dakota

Holding

LLC,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

1.00%

Cap

+

3.75%),

9.10%

,

 04/09/27

.......

384

380,048

Deerfield

Dakota

Holding

LLC,

2nd

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

6.75%),

12.36%

,

 04/07/28

......

133

126,516

Security

Par

(000)

Par

(000)

Value

Financial

Services

(continued)

GIP

Pilot

Acquisition

Partners

LP,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

3.00%),

8.33%

,

 10/04/30

.................

USD

20

$

19,983

GTCR

W

Merger

Sub

LLC,

Term

Loan

B,

09/20/30

(p)

.....................

111

111,416

LBM

Acquisition

LLC,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.01%

Cap

+

3.75%),

9.21%

,

 12/17/27

...........

79

78,236

Lions

Gate

Capital

Holdings

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.71%

,

 03/24/25

.................

130

129,840

Sotera

Health

Holdings

LLC,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

+

2.75%),

8.39%

,

 12/11/26

.................

166

165,723

UPC

Financing

Partnership,

Facility

Term

Loan

AX,

(1-mo.

CME

Term

SOFR

+

3.00%),

8.48%

,

 01/31/29

.................

74

73,253

WEX,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.72%

,

 03/31/28

.....

73

73,629

White

Cap

Supply

Holdings

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.75%),

9.11%

,

 10/19/27

............

80

79,751

1,701,511

Food

Products

—

0.2%

(a)

8th

Avenue

Food

&

Provisions,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.75%),

9.22%

,

 10/01/25

...........

141

134,961

B&G

Foods,

Inc.,

Term

Loan

B4,

(1-mo.

CME

Term

SOFR

+

2.50%),

7.86%

,

 10/10/26

..

19

18,970

Chobani

LLC,

Term

Loan

(1-mo.

CME

Term

SOFR

at

1.00%

Cap

+

3.50%),

8.97%, 10/25/27

.........

306

305,891

(1-mo.

CME

Term

SOFR

+

3.75%),

9.11%, 10/25/27

...............

51

51,042

Froneri

International

Ltd.,

Facility

1st

Lien

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.71%

,

 01/29/27

.................

242

241,925

H-Food

Holdings

LLC,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

3.69%),

9.34%

,

 05/23/25

..

40

31,516

Nomad

Foods

Ltd.,

Term

Loan

B4,

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.00%),

8.47%

,

 11/13/29

.................

105

105,364

Sovos

Brands

Intermediate,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.50%),

9.14%

,

 06/08/28

.......

173

173,317

Triton

Water

Holdings,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.86%

,

 03/31/28

...........

87

85,964

Utz

Quality

Foods

LLC,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

+

3.00%),

8.64%

,

 01/20/28

.................

214

214,486

1,363,436

Ground

Transportation

—

0.1%

(a)

AIT

Worldwide

Logistics

Holdings,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.75%),

10.21%

,

 04/06/28

.

44

43,794

Avis

Budget

Car

Rental

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.22%

,

 08/06/27

.................

96

96,039

Genesee

&

Wyoming,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

2.00%),

7.45%

,

 12/30/26

.................

105

105,227

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

38

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Ground

Transportation

(continued)

SIRVA

Worldwide,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

+

5.50%),

11.14%

-

11.15%

,

 08/04/25

................

USD

46

$

40,236

Uber

Technologies,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

2.75%),

8.13%

,

 03/03/30

.................

137

137,823

423,119

Health

Care

Equipment

&

Supplies

—

0.1%

(a)

Bausch

+

Lomb

Corp.,

Term

Loan

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.71%, 05/10/27

.........

175

172,380

(1-mo.

CME

Term

SOFR

+

4.00%),

9.36%, 09/29/28

...............

62

61,613

Chariot

Buyer

LLC,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.71%

,

 11/03/28

.................

164

163,560

Femur

Buyer,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

+

4.50%),

10.11%

,

 03/05/26

................

77

69,234

Insulet

Corp.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.72%

,

 05/04/28

.................

58

58,362

Medline

Borrower

LP,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.00%),

8.47%

,

 10/23/28

.................

330

331,170

856,319

Health

Care

Providers

&

Services

—

0.1%

(a)

CHG

Healthcare

Services,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.72%

,

 09/29/28

.......

136

136,174

CNT

Holding

I

Corp.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.50%),

8.93%

,

 11/08/27

............

131

131,389

Electron

Bidco,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.00%),

8.47%

,

 11/01/28

.................

145

144,824

EyeCare

Partners

LLC,

1st

Lien

Term

Loan

(3-mo.

CME

Term

SOFR

+

3.75%),

9.39%, 02/18/27

...............

33

15,756

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.75%),

9.39%, 11/15/28

..........

46

22,206

EyeCare

Partners

LLC,

2nd

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

6.75%),

12.39%

,

 11/15/29

...........

78

20,976

MED

ParentCo.

LP,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

+

4.25%),

9.72%

,

 08/31/26

.................

22

22,118

Medical

Solutions

Holdings,

Inc.,

2nd

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

7.00%),

12.46%

,

 11/01/29

......

110

92,263

Option

Care

Health,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.75%),

8.22%

,

 10/27/28

...........

81

81,616

Surgery

Center

Holdings,

Inc.,

Term

Loan,

8.86%

,

 12/19/30

.................

83

83,329

Vizient,

Inc.,

Term

Loan

B7,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.71%

,

 05/16/29

.................

45

45,325

795,976

Security

Par

(000)

Par

(000)

Value

Health

Care

Technology

—

0.1%

(a)

Athenahealth

Group,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.61%

,

 02/15/29

.................

USD

215

$

213,341

Gainwell

Acquisition

Corp.,

1st

Lien

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.75%

Floor

+

4.00%),

9.45%

,

 10/01/27

...........

199

193,090

Polaris

Newco

LLC,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.00%),

9.47%

,

 06/02/28

.................

347

341,459

Verscend

Holding

Corp.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

4.00%),

9.47%

,

 08/27/25

.................

161

161,236

909,126

Hotels,

Restaurants

&

Leisure

—

0.4%

(a)

1011778

BC

Unlimited

Liability

Co.,

Term

Loan

B5,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.61%

,

 09/23/30

.................

121

121,449

Aimbridge

Acquisition

Co.,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.75%),

9.22%

,

 02/02/26

.................

139

129,450

Alterra

Mountain

Co.,

Term

Loan

B3,

(1-mo.

CME

Term

SOFR

+

3.75%),

9.21%

,

 05/31/30

(e)

................

11

11,000

Bally's

Corp.,

Facility

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.93%

,

 10/02/28

.................

73

68,555

Caesars

Entertainment,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.71%

,

 02/06/30

...........

99

99,390

Carnival

Corp.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.00%),

8.36%

,

 08/09/27

.................

69

68,712

Churchill

Downs,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

2.00%),

7.46%

,

 03/17/28

.................

106

105,691

Equinox

Holdings,

Inc.,

1st

Lien

Term

Loan

B1,

(3-mo.

LIBOR

USD

at

1.00%

Floor

+

3.00%),

8.61%

,

 03/08/24

...........

244

237,816

Fertitta

Entertainment

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.00%),

9.36%

,

 01/27/29

...........

322

321,892

Flutter

Entertainment

plc,

Term

Loan

B

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.90%, 07/22/28

.........

47

46,642

(3-mo.

CME

Term

SOFR

+

2.25%),

7.70%, 11/10/30

...............

199

199,165

Four

Seasons

Holdings,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

7.96%

,

 11/30/29

.......

159

159,567

Hilton

Domestic

Operating

Co.,

Inc.,

Term

Loan

B4,

7.46%

,

 11/08/30

...............

174

174,193

IRB

Holding

Corp.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.00%),

8.46%

,

 12/15/27

.................

153

153,592

Light

&

Wonder

International,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.00%),

8.46%

,

 04/14/29

...........

84

83,733

Packers

Holdings

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.25%),

8.71%

,

 03/09/28

..

70

43,675

Penn

Entertainment,

Inc.,

Facility

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.75%),

8.20%

,

 05/03/29

...........

170

170,642

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

39

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

Playa

Resorts

Holding

BV,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.61%

,

 01/05/29

.................

USD

38

$

37,620

Seaworld

Parks

&

Entertainment,

Inc.,

Term

Loan,

(1-mo.

LIBOR

USD

at

0.50%

Cap

+

3.00%),

8.47%

,

 08/25/28

...........

49

49,531

Station

Casinos

LLC,

Facility

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

at

0.25%

Cap

+

2.25%),

7.71%

,

 02/08/27

...........

139

139,048

Whatabrands

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.00%),

8.47%

,

 08/03/28

.................

161

160,727

Wyndham

Hotels

&

Resorts,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.71%

,

 05/24/30

.................

36

36,443

2,618,533

Household

Durables

—

0.1%

(a)

ACProducts

Holdings,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.25%),

9.86%

,

 05/17/28

.................

129

113,068

Hunter

Douglas

Holding

BV,

Term

Loan

B1,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.88%

,

 02/26/29

...........

186

184,624

SWF

Holdings

I

Corp.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.00%),

9.47%

,

 10/06/28

...........

182

162,798

Weber-Stephen

Products

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.25%),

8.72%

,

 10/30/27

...........

236

205,572

666,062

Independent

Power

and

Renewable

Electricity

Producers

—

0.0%

(a)

Calpine

Construction

Finance

Co.

LP,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.61%

,

 07/31/30

.................

83

82,730

Calpine

Corp.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.00%),

7.47%

,

 08/12/26

.....

34

33,592

Constellation

Renewables

LLC,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

1.00%

Cap

+

2.50%),

8.15%

,

 12/15/27

...........

139

138,326

254,648

Industrial

Conglomerates

—

0.0%

(a)

EMRLD

Borrower

LP,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

3.00%),

8.36%

,

 05/31/30

.................

65

65,024

JFL-Tiger

Acquisition

Co.,

Inc.

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

5.00%),

10.40%

,

 10/17/30

...........

39

39,000

104,024

Insurance

—

0.2%

(a)

Alliant

Holdings

Intermediate

LLC,

Term

Loan

B6,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.87%

,

 11/06/30

..........

398

399,732

AmWINS

Group,

Inc.,

Term

Loan

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

2.75%),

8.22%, 02/19/28

.........

32

31,734

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

2.25%),

7.72%, 02/19/28

.........

147

147,351

AssuredPartners,

Inc.,

Term

Loan

(1-mo.

CME

Term

SOFR

+

3.50%),

8.97%, 02/12/27

...............

211

210,954

Security

Par

(000)

Par

(000)

Value

Insurance

(continued)

Baldwin

Risk

Partners

LLC,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.97%

,

 10/14/27

...........

USD

31

$

30,803

Hub

International

Ltd.,

Term

Loan

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.00%),

9.37%, 11/10/29

..........

62

62,568

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.25%),

9.66%, 06/20/30

.........

261

261,574

Jones

DesLauriers

Insurance

Management,

Inc.,

1st

Lien

Term

Loan,

(6-mo.

CME

Term

SOFR

+

4.25%),

9.62%

,

 03/15/30

.....

81

81,237

Ryan

Specialty

Group

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.00%),

8.46%

,

 09/01/27

.................

128

127,463

USI,

Inc.,

Term

Loan

(3-mo.

CME

Term

SOFR

+

3.00%),

8.35%, 11/22/29

...............

223

222,821

(3-mo.

CME

Term

SOFR

+

3.25%),

8.60%, 09/27/30

...............

73

72,835

1,649,072

Interactive

Media

&

Services

—

0.1%

(a)

Adevinta

ASA,

Facility

Term

Loan

B2,

(3-mo.

CME

Term

SOFR

at

0.75%

Floor

+

2.75%),

8.46%

,

 06/26/28

.................

37

37,476

Camelot

US

Acquisition

LLC,

Term

Loan

(1-mo.

CME

Term

SOFR

at

1.00%

Cap

+

3.00%),

8.47%, 10/30/26

.........

265

264,698

Grab

Holdings,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

1.00%

Cap

+

4.50%),

9.97%

,

 01/29/26

.................

62

62,003

364,177

IT

Services

—

0.2%

(a)

Asurion

LLC,

2nd

Lien

Term

Loan

B3,

(1-mo.

CME

Term

SOFR

+

5.25%),

10.72%

,

 01/31/28

................

69

65,607

Asurion

LLC,

2nd

Lien

Term

Loan

B4,

(1-mo.

CME

Term

SOFR

+

5.25%),

10.72%

,

 01/20/29

................

49

46,075

Asurion

LLC,

Term

Loan

B11,

(1-mo.

CME

Term

SOFR

+

4.25%),

9.71%

,

 08/19/28

.....

128

127,462

Asurion

LLC,

Term

Loan

B8,

(1-mo.

CME

Term

SOFR

+

3.25%),

8.72%

,

 12/23/26

.....

74

73,586

Central

Parent

LLC.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

+

4.00%),

9.35%

,

 07/06/29

.................

212

212,869

Go

Daddy

Operating

Co.

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.50%),

7.86%

,

 11/09/29

.................

126

126,095

Go

Daddy

Operating

Co.

LLC,

Term

Loan

B4,

(1-mo.

CME

Term

SOFR

+

2.00%),

7.47%

,

 08/10/27

.................

85

84,637

Sedgwick

Claims

Management

Services,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.75%),

9.11%

,

 02/24/28

............

291

291,306

Venga

Finance

SARL,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.75%),

10.40%

,

 06/28/29

................

86

84,960

1,112,597

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

40

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Leisure

Products

—

0.0%

(a)

Fender

Musical

Instruments

Corp.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.00%),

9.46%

,

 12/01/28

(e)

..........

USD

42

$

40,951

Peloton

Interactive,

Inc.,

Term

Loan,

(6-mo.

CME

Term

SOFR

at

0.50%

Cap

+

7.00%),

12.48%

,

 05/25/27

................

84

83,955

Topgolf

Callaway

Brands

Corp.,

Term

Loan,

8.96%

,

 03/15/30

.................

73

73,369

198,275

Life

Sciences

Tools

&

Services

—

0.1%

(a)

Avantor

Funding,

Inc.,

Term

Loan

B5,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.71%

,

 11/08/27

.................

73

73,336

Curia

Global,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

+

3.75%),

9.23%

,

 08/30/26

.................

15

13,242

eResearchTechnology,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

1.00%

Cap

+

4.50%),

9.96%

,

 02/04/27

.......

68

67,420

Fortrea

Holdings,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.75%),

9.11%

,

 07/01/30

.................

30

29,800

ICON

plc,

Term

Loan

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.86%, 07/03/28

.........

140

140,476

IQVIA,

Inc.,

Term

Loan

B4,

(3-mo.

CME

Term

SOFR

+

2.00%),

7.35%

,

 01/02/31

.....

88

88,252

Maravai

Intermediate

Holdings

LLC,

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.00%),

8.40%

,

 10/19/27

...........

147

142,973

Parexel

International,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.72%

,

 11/15/28

............

202

202,844

Star

Parent,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

4.00%),

9.35%

,

 09/27/30

.....

60

59,225

817,568

Machinery

—

0.3%

(a)

AI

Aqua

Merger

Sub,

Inc.,

Term

Loan,

07/31/28

(p)

.....................

101

101,348

Albion

Financing

3

SARL,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

5.25%),

10.92%

,

 08/17/26

................

127

127,526

Barnes

Group,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.00%),

8.46%

,

 09/03/30

..

51

50,974

Clark

Equipment

Co.,

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

7.95%

,

 04/20/29

.................

56

56,159

Columbus

McKinnon

Corp.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.75%),

8.39%

,

 05/14/28

.................

44

44,086

Filtration

Group

Corp.,

Term

Loan

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.97%, 10/21/28

.........

109

109,334

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.25%),

9.72%, 10/21/28

.........

61

61,344

Gardner

Denver,

Inc.,

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.21%

,

 03/01/27

.................

159

159,012

Gates

Global

LLC,

Term

Loan

B3,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

2.50%),

7.96%

,

 03/31/27

.................

145

145,316

Security

Par

(000)

Par

(000)

Value

Machinery

(continued)

Generac

Power

Systems,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.20%

,

 12/13/26

.................

USD

20

$

19,975

Husky

Injection

Molding

Systems

Ltd.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.00%),

8.47%

,

 03/28/25

.................

203

202,304

Ingersoll-Rand

Services

Co.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

at

0.00%

Cap

+

1.75%),

7.21%

,

 03/01/27

...........

37

36,802

Madison

IAQ

LLC,

Term

Loan,

(1-mo.

LIBOR

USD

at

0.50%

Cap

+

3.25%),

8.72%

,

 06/21/28

.................

157

156,651

Roper

Industrial

Products

Investment

Co.

LLC,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.00%),

9.35%

,

 11/22/29

.................

183

183,076

SPX

Flow,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.50%),

9.96%

,

 04/05/29

.................

140

140,096

TK

Elevator

Midco

GmbH,

Facility

Term

Loan

B1,

(6-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

9.38%

,

 07/30/27

..........

239

238,956

Vertiv

Group

Corp.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

2.50%),

7.97%

,

 03/02/27

..

193

193,444

Zurn

LLC,

1st

Lien

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.00%),

7.47%

,

 10/04/28

.................

25

25,426

2,051,829

Media

—

0.1%

(a)

AVSC

Holding

Corp.,

1st

Lien

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

+

3.25%),

8.71%

,

 03/03/25

.................

100

97,340

AVSC

Holding

Corp.,

1st

Lien

Term

Loan

B3,

(3-mo.

LIBOR

USD

+

15.00%),

15.00%

,

 10/15/26

................

50

50,986

Charter

Communications

Operating

LLC,

Term

Loan

B4,

(3-mo.

CME

Term

SOFR

+

2.00%),

7.33%

,

 12/07/30

.................

86

85,999

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

B,

(3-mo.

CME

Term

SOFR

+

3.50%),

9.14%

,

 08/21/26

.................

83

82,152

CSC

Holdings

LLC,

Term

Loan,

(1-mo.

LIBOR

USD

+

2.50%),

7.98%

,

 04/15/27

......

129

122,352

DirecTV

Financing

LLC,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

5.00%),

10.65%

,

 08/02/27

................

134

133,470

ECL

Entertainment

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.75%

Floor

+

4.75%),

10.11%

,

 09/03/30

................

35

34,939

Learfield

Communications

LLC,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

2.00%

Cap

+

5.50%),

10.86% 06/30/28

.......

54

52,423

Sinclair

Television

Group,

Inc.,

Term

Loan

B4,

(1-mo.

CME

Term

SOFR

+

3.75%),

9.21%

,

 04/21/29

.................

41

33,371

Voyage

Digital

Ltd.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.00%),

9.37%

,

 05/11/29

(e)

................

75

75,101

Ziggo

Financing

Partnership,

Facility

Term

Loan

I,

(1-mo.

CME

Term

SOFR

+

2.50%),

7.98%

,

 04/30/28

.................

78

77,694

845,827

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

41

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

—

0.1%

(a)

Freeport

LNG

investments

LLLP,

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

9.18%

,

 12/21/28

...........

USD

249

$

248,062

M6

ETX

Holdings

II

Midco

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.50%),

9.96%

,

 09/19/29

...........

43

43,491

Medallion

Midland

Acquisition,

LP,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

3.50%),

8.86%

,

 10/18/28

.................

183

183,509

New

Fortress

Energy

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

5.00%),

10.39%

,

 10/30/28

................

130

127,725

Oryx

Midstream

Services

Permian

Basin

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.71%

,

 10/05/28

..

228

228,126

830,913

Passenger

Airlines

—

0.2%

(a)

AAdvantage

Loyalty

IP

Ltd.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.75%),

10.43%

,

 04/20/28

................

122

124,939

Air

Canada,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.50%),

9.14%

,

 08/11/28

.................

137

137,397

American

Airlines,

Inc.,

Term

Loan

(6-mo.

CME

Term

SOFR

+

1.75%),

7.32%, 01/29/27

...............

130

129,010

(6-mo.

CME

Term

SOFR

+

2.75%),

8.60%, 02/15/28

...............

153

153,143

(3-mo.

CME

Term

SOFR

+

3.50%),

8.87%, 06/04/29

...............

126

126,157

Mileage

Plus

Holdings

LLC,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

1.00%

Cap

+

5.25%),

10.77%

,

 06/21/27

................

139

143,934

United

AirLines,

Inc.,

Term

Loan

B,

9.22%

,

 04/21/28

.................

157

157,347

WestJet

Airlines

Ltd.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

1.00%

Cap

+

3.00%),

8.46%

,

 12/11/26

.................

65

65,155

1,037,082

Personal

Care

Products

—

0.1%

Sunshine

Luxembourg

VII

SARL,

Facility

Term

Loan

B3,

(3-mo.

CME

Term

SOFR

+

3.50%),

8.95%

,

 10/01/26

(a)

................

476

478,267

Pharmaceuticals

—

0.1%

(a)

Amneal

Pharmaceuticals

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

5.50%),

10.86%

,

 05/04/28

................

107

104,974

Amynta

Agency

Borrower,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

4.25%),

9.61%

,

 02/28/28

.................

99

98,851

Bausch

Health

Cos.,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

5.25%),

10.71%

,

 02/01/27

................

105

85,228

Catalent

Pharma

Solutions,

Inc.,

Term

Loan

B3,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

2.00%),

7.47%

,

 02/22/28

...........

166

162,806

Elanco

Animal

Health,

Inc.,

Term

Loan,

7.20%

,

 08/01/27

.................

141

140,286

Jazz

Pharmaceuticals

plc,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.97%

,

 05/05/28

.................

139

139,216

Security

Par

(000)

Par

(000)

Value

Pharmaceuticals

(continued)

Organon

&

Co.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.00%),

8.47%

,

 06/02/28

.................

USD

130

$

130,014

Perrigo

Co.

plc,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

2.25%),

7.71%

,

 04/20/29

.................

79

79,099

Precision

Medicine

Group

LLC,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.00%),

8.45%

,

 11/18/27

............

88

86,476

1,026,950

Professional

Services

—

0.2%

(a)

AlixPartners

LLP,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.75%),

8.22%

,

 02/04/28

.................

122

122,340

ASGN,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.25%),

7.61%

,

 08/30/30

.....

28

28,028

CoreLogic,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.97%

,

 06/02/28

.................

302

293,551

Dun

&

Bradstreet

Corp.

(The),

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.75%),

8.21%

,

 02/06/26

.................

360

360,920

Dun

&

Bradstreet

Corp.

(The),

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

+

3.00%),

8.36%

,

 01/18/29

.................

130

130,169

Element

Materials

Technology

Group

US

Holdings,

Inc.,

Delayed

Draw

1st

Lien

Term

Loan

B,

9.70%

,

 07/06/29

...........

43

43,002

Element

Materials

Technology

Group

US

Holdings,

Inc.,

Term

Loan

B,

9.70%

,

 07/06/29

.................

98

96,434

FleetCor

Technologies

Operating

Co.

LLC,

Term

Loan

B4,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.21%

,

 04/28/28

...........

98

98,147

Galaxy

US

Opco,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.75%),

10.13%

,

 04/29/29

(e)

..........

120

98,336

Trans

Union

LLC,

Term

Loan

B5,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.21%

,

 11/16/26

..

79

79,551

Trans

Union

LLC,

Term

Loan

B6,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.72%

,

 12/01/28

.................

109

109,358

VS

Buyer

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

3.25%),

8.71%

,

 02/28/27

.....

146

146,333

1,606,169

Real

Estate

Management

&

Development

—

0.0%

Cushman

&

Wakefield

U.S.

Borrower

LLC,

Term

Loan

(a)

(1-mo.

CME

Term

SOFR

+

2.75%),

8.22%, 08/21/25

(e)

..............

8

8,160

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.71%, 01/31/30

.........

80

79,327

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.00%),

9.36%, 01/31/30

(e)

........

62

61,845

149,332

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

42

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Semiconductors

&

Semiconductor

Equipment

—

0.0%

(a)

MKS

Instruments,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

2.50%),

7.85%

,

 08/17/29

.................

USD

128

$

128,635

Synaptics,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.87%

,

 12/02/28

.................

42

41,942

170,577

Software

—

0.5%

(a)

Applied

Systems,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.50%),

9.85%

,

 09/18/26

...........

74

74,117

Applied

Systems,

Inc.,

2nd

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

6.75%),

12.10%

,

 09/17/27

...........

48

48,206

Barracuda

Parent

LLC,

1st

Lien

Term

Loan,

9.88%

,

 08/15/29

.................

65

62,976

CCC

Intelligent

Solutions,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.25%),

7.72%

,

 09/21/28

...........

182

182,110

Cloud

Software

Group,

Inc.,

1st

Lien

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

4.50%),

9.95%

-

9.99%

,

 03/30/29

......

478

465,784

Cloudera,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.75%),

9.21%

,

 10/08/28

.................

50

49,886

Cloudera,

Inc.,

2nd

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

6.00%),

11.46%

,

 10/08/29

................

83

79,126

Delta

Topco,

Inc.,

2nd

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Cap

+

7.25%),

12.62%

,

 12/01/28

................

30

29,992

Epicor

Software

Corp.,

Term

Loan

C,

(1-mo.

CME

Term

SOFR

at

0.75%

Floor

+

3.25%),

8.72%

,

 07/30/27

.................

39

38,743

Gen

Digital,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.00%),

7.46%

,

 09/12/29

.................

113

112,582

Genesys

Cloud

Services

Holdings

I

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.00%),

9.47%

,

 12/01/27

.......

181

181,923

Helios

Software

Holdings,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

+

4.25%),

9.70%

,

 07/18/30

.................

75

74,812

Informatica

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.75%),

8.22%

,

 10/27/28

.....

190

190,193

Magenta

Buyer

LLC,

2nd

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Floor

+

8.25%),

13.89%

,

 07/27/29

...........

441

167,501

McAfee

Corp.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.75%),

9.20%

,

 03/01/29

.................

167

166,320

MH

Sub

I

LLC,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

4.25%),

9.61%

,

 05/03/28

.................

354

347,219

MH

Sub

I

LLC,

2nd

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

+

6.25%),

11.61%

,

 02/23/29

................

152

141,544

Proofpoint,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.72%

,

 08/31/28

.................

282

281,921

RealPage,

Inc.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.00%),

8.47%

,

 04/24/28

.................

325

322,482

Security

Par

(000)

Par

(000)

Value

Software

(continued)

Severin

Acquisition

LLC,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

+

3.25%),

8.63%

,

 08/01/27

.................

USD

87

$

87,499

Sophia

LP,

1st

Lien

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.96%

,

 10/07/27

.................

165

165,548

SS&C

Technologies

Holdings,

Inc.,

Term

Loan

B3,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.22%

,

 04/16/25

.................

13

13,092

SS&C

Technologies

Holdings,

Inc.,

Term

Loan

B4,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.22%

,

 04/16/25

.................

12

12,362

UKG,

Inc.,

1st

Lien

Term

Loan

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.25%),

8.68%, 05/04/26

.........

59

58,682

(3-mo.

CME

Term

SOFR

+

3.75%),

9.23%, 05/04/26

...............

80

80,254

UKG,

Inc.,

2nd

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

5.25%),

10.68%

,

 05/03/27

................

104

104,109

Voyage

Australia

Pty

Ltd.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

9.18%

,

 07/20/28

...........

21

21,152

3,560,135

Specialty

Retail

—

0.1%

(a)

EG

Group

Ltd.,

Facility

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

4.25%),

9.83%

,

 03/31/26

(e)

................

48

48,279

Mavis

Tire

Express

Services

Topco

Corp.,

1st

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

4.00%),

9.47%

,

 05/04/28

..

144

144,199

PetSmart

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.75%),

9.21%

,

 02/11/28

.................

163

160,926

Pilot

Travel

Centers

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

2.00%),

7.46%

,

 08/04/28

.................

99

99,545

Restoration

Hardware,

Inc.,

Term

Loan

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.50%),

7.97%, 10/20/28

.........

72

69,983

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.25%),

8.71%, 10/20/28

.........

21

19,964

542,896

Textiles,

Apparel

&

Luxury

Goods

—

0.0%

(a)

Crocs,

Inc.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.00%),

8.50%

,

 02/20/29

.................

43

43,259

Hanesbrands,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.75%),

9.11%

,

 03/08/30

(e)

................

33

32,671

75,930

Trading

Companies

&

Distributors

—

0.1%

(a)

Beacon

Roofing

Supply,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

2.50%),

7.97%

,

 05/19/28

.................

53

52,815

Core

&

Main

LP,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

+

2.50%),

7.96%

-

8.06%

,

 07/27/28

.................

219

219,095

SRS

Distribution,

Inc.,

Term

Loan

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.25%),

8.96%, 06/02/28

.........

103

102,449

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

43

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Trading

Companies

&

Distributors

(continued)

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.97%, 06/02/28

.........

USD

176

$

176,241

TMK

Hawk

Parent

Corp.,

Term

Loan

A,

(3-mo.

CME

Term

SOFR

at

1.00%

Cap

+

7.50%),

13.14%

,

 05/30/24

(e)

...............

38

37,427

TMK

Hawk

Parent

Corp.,

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

1.00%

Cap

+

3.50%),

9.14%

-

9.17%

,

 08/28/24

(e)

..........

118

72,994

661,021

Transportation

Infrastructure

—

0.1%

(a)

Apple

Bidco

LLC,

1st

Lien

Term

Loan

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

2.75%),

8.22%, 09/22/28

.........

84

83,390

(1-mo.

CME

Term

SOFR

at

0.50%

Cap

+

3.50%),

8.86%, 09/22/28

.........

51

50,765

OLA

Netherlands

BV,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

6.25%),

11.71%

,

 12/15/26

(e)

...............

123

122,004

Rand

Parent

LLC,

1st

Lien

Term

Loan

B,

(3-mo.

CME

Term

SOFR

+

4.25%),

9.60%

,

 03/17/30

.................

47

46,465

302,624

Wireless

Telecommunication

Services

—

0.0%

(a)

Digicel

International

Finance

Ltd.,

1st

Lien

Term

Loan

B,

(3-mo.

LIBOR

USD

+

2.25%),

10.75%

,

 05/28/24

................

75

69,234

Digicel

International

Work

Fee,

Term

Loan,

01/01/38

(p)

.....................

3

3,001

Gogo

Intermediate

Holdings

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.75%

Cap

+

3.75%),

9.22%

,

 04/30/28

...........

53

52,961

SBA

Senior

Finance

II

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

1.75%),

7.21%

,

 04/11/25

.................

101

100,953

226,149

Total

Floating

Rate

Loan

Interests

—

5.6%

(Cost:

$42,305,943)

..............................

41,661,397

Foreign

Agency

Obligations

Mexico

—

0.2%

Petroleos

Mexicanos

6.88%,

08/04/26

.................

820

792,448

5.95%,

01/28/31

.................

121

96,014

6.70%,

02/16/32

.................

448

370,720

1,259,182

Total

Foreign

Agency

Obligations

—

0.2%

(Cost:

$1,214,156)

..............................

1,259,182

Shares

Shares

Investment

Companies

(q)

BlackRock

Allocation

Target

Shares

-

BATS

Series

A

.......................

5,547,546

51,703,127

BlackRock

GNMA

Portfolio,

Class

K

Shares

.

7,321,351

58,424,382

BlackRock

High

Equity

Income

Fund,

Class

K

Shares

........................

894,107

24,918,753

BlackRock

High

Yield

Bond

Portfolio,

Class

K

Shares

........................

212

1,492

iShares

Core

Dividend

Growth

ETF

......

440,132

23,687,904

Security

Shares

Shares

Value

Investment

Companies

(q)

(continued)

iShares

iBoxx

$

High

Yield

Corporate

Bond

ETF

..........................

191,756

$

14,839,997

Total

Investment

Companies

—

23.4%

(Cost:

$179,096,062)

.............................

173,575,655

Par

(000)

Par

(000)

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

1.5%

(b)

CHNGE

Mortgage

Trust,

Series

2022-2,

Class

A1,

3.76%,

03/25/67

(a)

.............

USD

802

754,144

CIM

Trust,

Series

2023-I2,

Class

A1,

6.64%,

12/25/67

(l)

......................

351

354,273

COLT

Mortgage

Loan

Trust

Series

2022-5,

Class

A1,

4.55%,

04/25/67

(a)

237

232,126

Series

2022-9,

Class

A1,

6.79%,

12/25/67

(l)

695

703,685

Ellington

Financial

Mortgage

Trust,

Series

2021-2,

Class

A1,

0.93%,

06/25/66

(a)

....

120

95,908

GCAT

Trust,

Series

2022-NQM3,

Class

A1,

4.35%,

04/25/67

(a)

................

808

779,503

JP

Morgan

Mortgage

Trust,

Series

2022-DSC1,

Class

A1,

4.75%,

01/25/63

(a)

.........

813

774,436

MFA

Trust,

Series

2023-NQM2,

Class

A1,

4.40%,

03/25/68

(l)

................

366

353,895

MFRA

Trust,

Series

2022-CHM1,

Class

A1,

3.88%,

09/25/56

(l)

................

693

656,717

Mill

City

Mortgage

Loan

Trust

(l)

Series

2023-NQM1,

Class

A1,

6.05%,

10/25/67

....................

138

138,617

Series

2023-NQM2,

Class

A1,

6.24%,

12/25/67

....................

209

209,074

OBX

Trust

(l)

Series

2022-NQM7,

Class

A1,

5.11%,

08/25/62

....................

326

320,556

Series

2022-NQM8,

Class

A1,

6.10%,

09/25/62

....................

173

173,895

Series

2022-NQM9,

Class

A1A,

6.45%,

09/25/62

....................

1,134

1,145,453

PRKCM

Trust,

Series

2022-AFC2,

Class

A1,

5.33%,

08/25/57

(a)

................

896

882,339

SG

Residential

Mortgage

Trust,

Series

2022-2,

Class

A1,

5.35%,

08/25/62

(l)

..........

971

970,965

Spruce

Hill

Mortgage

Loan

Trust,

Series

2022-

SH1,

Class

A1A,

4.10%,

07/25/57

(l)

.....

994

954,156

Verus

Securitization

Trust

(l)

Series

2022-3,

Class

A1,

4.13%,

02/25/67

609

566,809

Series

2022-INV2,

Class

A1,

6.79%,

10/25/67

....................

885

897,715

10,964,266

Total

Non-Agency

Mortgage-Backed

Securities

—

1.5%

(Cost:

$10,756,824)

..............................

10,964,266

Beneficial

Interest

(000)

Other

Interests

(r)

Capital

Markets

—

0.0%

Lehman

Brothers

Holdings,

Capital

Trust

VII

(d)(e)

(g)

...........................

15

—

Total

Other

Interests

—

0.0%

(Cost:

$—)

....................................

—

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

44

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Pa

r

(

000)

Value

Preferred

Securities

Capital

Trusts

—

0.9%

Banks

—

0.0%

(a)(h)

Citigroup,

Inc.,

Series

Y,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.00%),

4.15%

..................

USD

10

$

8,582

PNC

Financial

Services

Group,

Inc.

(The)

Series

V,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.24%),

6.20%

......................

88

85,557

Series

W,

(7-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

2.81%),

6.25%

......................

38

35,422

129,561

Capital

Markets

—

0.1%

(a)(h)

Charles

Schwab

Corp.

(The)

Series

I,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.17%),

4.00%

......................

417

367,577

Series

H,

(10-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.08%),

4.00%

......................

441

348,306

Goldman

Sachs

Group,

Inc.

(The),

Series

R,

(5-

Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.22%),

4.95%

.....

70

66,842

782,725

Consumer

Finance

—

0.3%

(a)(h)

Ally

Financial,

Inc.,

Series

B,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.87%),

4.70%

...........

1,325

993,832

Capital

One

Financial

Corp.,

Series

M,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.16%),

3.95%

.....

1,000

801,439

Discover

Financial

Services,

Series

C,

(3-mo.

CME

Term

SOFR

+

3.34%),

5.50%

.....

725

582,538

General

Motors

Financial

Co.,

Inc.,

Series

C,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

5.00%),

5.70%

.

29

26,781

2,404,590

Electric

Utilities

—

0.2%

(a)(h)

Edison

International

Series

A,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

4.70%),

5.38%

......................

1,201

1,135,904

Series

B,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.90%),

5.00%

......................

56

52,142

NRG

Energy,

Inc.,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

5.92%),

10.25%

(b)

................

63

65,588

1,253,634

Independent

Power

and

Renewable

Electricity

Producers

—

0.0%

Vistra

Corp.,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

5.74%),

7.00%

(a)(b)(h)

.....................

47

46,295

Multi-Utilities

—

0.1%

(a)(h)

Dominion

Energy,

Inc.,

Series

C,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.20%),

4.35%

...........

365

323,651

Sempra,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

4.55%),

4.88%

450

440,218

763,869

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

—

0.2%

Energy

Transfer

LP

(a)(h)

Series

H,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

5.69%),

6.50%

......................

USD

90

$

85,525

Series

G,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

5.31%),

7.13%

......................

1,125

1,036,664

1,122,189

Total

Capital

Trusts

—

0.9%

(Cost:

$7,392,886)

..............................

6,502,863

Shares

Shares

Trust

Preferreds

—

0.0%

Commercial

Services

&

Supplies

—

0.0%

ILFC

E-Capital

Trust

I

,

(3-mo.

CME

Term

SOFR

at

14.50%

Cap

+

1.81%),

7.19%, 12/21/65

(a)

(b)

...........................

100,000

74,188

Total

Trust

Preferreds

—

0.0%

(Cost:

$95,250)

................................

74,188

Total

Preferred

Securities

—

0.9%

(Cost:

$7,488,136)

..............................

6,577,051

Warrants

Diversified

Consumer

Services

—

0.0%

Service

King

Midas

International

(Issued/

Exercisable

07/14/22,

1

Share

for

1

Warrant,

Expires

06/30/27,

Strike

Price

USD

10.00)

(d)

(e)

...........................

394

—

Oil,

Gas

&

Consumable

Fuels

—

0.0%

California

Resources

Corp.

(Issued/Exercisable

10/23/20,

1

Share

for

1

Warrant,

Expires

10/27/24,

Strike

Price

USD

36.00)

(d)

....

52

1,008

Total

Warrants

—

0.0%

(Cost:

$—)

....................................

1,008

Total

Long-Term

Investments

—

95.2%

(Cost:

$703,638,463)

.............................

704,979,160

Short-Term

Securities

Money

Market

Funds

—

3.6%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

5.26%

(q)(s)

.................

26,641,869

26,641,869

Total

Short-Term

Securities

—

3.6%

(Cost:

$26,641,869)

..............................

26,641,869

Total

Investments

—

98.8%

(Cost:

$730,280,332

)

.............................

731,621,029

Other

Assets

Less

Liabilities

—

1.2%

...................

9,134,869

Net

Assets

—

100.0%

..............................

$

740,755,898

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

45

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the year

ended

December

31,

2023

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

(a)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(b)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(c)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(d)

Non-income

producing

security.

(e)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(f)

Restricted

security

as

to

resale,

excluding

144A

securities.

The

Fund

held

restricted

securities

with

a

current

value

of

$32,768,

representing

less

than

0.05%

of

its

net

assets

as

of

period

end,

and

an

original

cost

of

$9,686.

(g)

Issuer

filed

for

bankruptcy

and/or

is

in

default.

(h)

Perpetual

security

with

no

stated

maturity

date.

(i)

All

or

a

portion

of

the

security

has

been

pledged

in

connection

with

outstanding

centrally

cleared

swaps.

(j)

Payment-in-kind

security

which

may

pay

interest/dividends

in

additional

par/shares

and/or

in

cash.

Rates

shown

are

the

current

rate

and

possible

payment

rates.

(k)

When-issued

security.

(l)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(m)

Convertible

security.

(n)

Zero-coupon

bond.

(o)

Rounds

to

less

than

1,000.

(p)

Represents

an

unsettled

loan

commitment

at

period

end.

Certain

details

associated

with

this

purchase

are

not

known

prior

to

the

settlement

date,

including

coupon

rate.

(q)

Affiliate

of

the

Fund.

(r)

Other

interests

represent

beneficial

interests

in

liquidation

trusts

and

other

reorganization

or

private

entities.

(s)

Annualized

7-day

yield

as

of

period

end.

Affiliated

Issuer

Value

at

12/31/22

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

12/31/23

Shares

Held

at

12/31/23

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

.

$

23,716,077

$

2,925,792

(a)

$

—

$

—

$

—

$

26,641,869

26,641,869

$

1,115,106

$

—

SL

Liquidity

Series,

LLC,

Money

Market

Series

(b)

........

3,710,763

—

(3,708,061)

(a)

(2,702)

—

—

—

45,141

(c)

—

BlackRock

Allocation

Target

Shares

-

BATS

Series

A

..

62,729,250

—

(12,300,002)

(1,098,926)

2,372,805

51,703,127

5,547,546

3,655,787

—

BlackRock

Floating

Rate

Income

Portfolio,

Class

K

Shares

(b)

............

4,029,841

—

(4,102,724)

(125,513)

198,396

—

—

26,123

—

BlackRock

GNMA

Portfolio,

Class

K

Shares

........

24,802,800

33,558,111

—

—

63,471

58,424,382

7,321,351

1,858,136

—

BlackRock

High

Equity

Income

Fund,

Class

K

Shares

...

—

24,590,376

—

—

328,377

24,918,753

894,107

1,510,422

—

BlackRock

High

Yield

Bond

Portfolio,

Class

K

Shares

.

419,542

18,767

(445,627)

5,009

3,801

1,492

212

18,768

—

iShares

Core

Dividend

Growth

ETF

................

24,188,800

49,546,068

(51,694,435)

(1,069,383)

2,716,854

23,687,904

440,132

323,943

—

iShares

iBoxx

$

High

Yield

Corporate

Bond

ETF

....

7,764,431

14,776,641

(7,865,022)

(166,319)

330,266

14,839,997

191,756

274,105

—

iShares

iBoxx

$

Investment

Grade

Corporate

Bond

ETF

(b)

..............

7,715,684

—

(7,513,737)

(523,125)

321,178

—

—

262,322

—

iShares

MBS

ETF

(b)

.......

7,825,132

14,375,113

(22,411,255)

(10,422)

221,432

—

—

279,828

—

$

(2,991,381)

$

6,556,580

$

200,217,524

$

9,369,681

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

(b)

As

of

period

end,

the

entity

is

no

longer

held.

(c)

All

or

a

portion

represents

securities

lending

income

earned

from

the

reinvestment

of

cash

collateral

from

loaned

securities,

net

of

fees

and

collateral

investment

expenses,

and

other

payments

to

and

from

borrowers

of

securities.

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

46

Derivative

Financial

Instruments

Outstanding

as

of

Period

End

Futures

Contracts

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

(000)

Value/

Unrealized

Appreciation

(Depreciation)

Long

Contracts

S&P

500

E-Mini

Index

.......................................................

28

03/15/24

$

6,748

$

106,882

U.S.

Treasury

10-Year

Note

...................................................

1,990

03/19/24

224,652

5,477,803

U.S.

Treasury

5-Year

Note

....................................................

362

03/28/24

39,376

845,307

6,429,992

Short

Contracts

EUR

Currency

............................................................

48

03/18/24

6,645

(127,314)

GBP

Currency

............................................................

188

03/18/24

14,982

(205,318)

JPY

Currency

............................................................

9

03/18/24

807

(20,220)

U.S.

Treasury

Long

Bond

.....................................................

1

03/19/24

125

(9,072)

(361,924)

$

6,068,068

Centrally

Cleared

Credit

Default

Swaps

—

Buy

Protection

Reference

Obligation/Index

Financing

Rate

Paid

by

the

Fund

Payment

Frequency

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

Markit

CDX

North

American

High

Yield

Index

Series

41.V2

.....................

5.00

%

Quarterly

12/20/28

USD

832

$

(49,665)

$

(30,983)

$

(18,682)

Centrally

Cleared

Credit

Defa

ul

t

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)

Markit

CDX

North

American

Investment

Grade

Index

Series

41.V1

.......

1.00

%

Quarterly

12/20/28

BBB+

USD

391

$

(7,701)

$

(6,606)

$

(1,095)

Markit

CDX

North

American

Investment

Grade

Index

Series

41.V1

.......

1.00

Quarterly

12/20/28

BBB+

USD

2,531

49,794

47,315

2,479

$

42,093

$

40,709

$

1,384

(a)

Using

the

rating

of

the

issuer

or

the

underlying

securities

of

the

index,

as

applicable,

provided

by

S&P

Global

Ratings.

(b)

The

maximum

potential

amount

the

Fund

may

pay

should

a

negative

credit

event

take

place

as

defined

under

the

terms

of

the

agreement.

OTC

Credit

Default

Swap

s

—

Buy

Protection

Reference

Obligation/Index

Financing

Rate

Paid

by

the

Fund

Payment

Frequency

Counterparty

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

AutoZone,

Inc.

............

1.00

%

Quarterly

Deutsche

Bank

AG

12/20/28

USD

400

$

(11,452)

$

(11,335)

$

(117)

Conagra

Brands,

Inc.

.......

1.00

Quarterly

Bank

of

America

NA

12/20/28

USD

95

(1,579)

(1,480)

(99)

Conagra

Brands,

Inc.

.......

1.00

Quarterly

Bank

of

America

NA

12/20/28

USD

224

(3,715)

(3,479)

(236)

CVS

Health

Corp.

.........

1.00

Quarterly

Bank

of

America

NA

12/20/28

USD

400

(9,101)

(8,975)

(126)

CVS

Health

Corp.

.........

1.00

Quarterly

Goldman

Sachs

International

12/20/28

USD

170

(3,868)

(3,491)

(377)

Dow

Chemical

Co.

(The)

.....

1.00

Quarterly

Bank

of

America

NA

12/20/28

USD

170

(2,784)

(2,646)

(138)

Dow

Chemical

Co.

(The)

.....

1.00

Quarterly

Morgan

Stanley

&

Co.

International

plc

12/20/28

USD

188

(3,072)

(2,666)

(406)

Dow

Chemical

Co.

(The)

.....

1.00

Quarterly

Morgan

Stanley

&

Co.

International

plc

12/20/28

USD

212

(3,479)

(3,171)

(308)

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

47

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

OTC

Credit

Default

Swaps

—

Buy

Protection

(continued)

Reference

Obligation/Index

Financing

Rate

Paid

by

the

Fund

Payment

Frequency

Counterparty

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

DR

Horton,

Inc.

...........

1.00

%

Quarterly

Bank

of

America

NA

12/20/28

USD

170

$

(3,744)

$

(3,803)

$

59

DR

Horton,

Inc.

...........

1.00

Quarterly

Barclays

Bank

plc

12/20/28

USD

400

(8,810)

(7,856)

(954)

Lowe's

Cos.,

Inc.

..........

1.00

Quarterly

Deutsche

Bank

AG

12/20/28

USD

400

(10,836)

(10,066)

(770)

Tyson

Foods,

Inc.

.........

1.00

Quarterly

Bank

of

America

NA

12/20/28

USD

37

(505)

(449)

(56)

Tyson

Foods,

Inc.

.........

1.00

Quarterly

Bank

of

America

NA

12/20/28

USD

88

(1,189)

(1,056)

(133)

Tyson

Foods,

Inc.

.........

1.00

Quarterly

Bank

of

America

NA

12/20/28

USD

93

(1,263)

(1,200)

(63)

Tyson

Foods,

Inc.

.........

1.00

Quarterly

Bank

of

America

NA

12/20/28

USD

219

(2,972)

(2,823)

(149)

$

–

$

–

$

–

$

(68,369)

$

(64,496)

$

(3,873)

$

–

$

–

$

–

OTC

Credit

Default

Swap

s

—

Sell

Protection

Reference

Obligation/Index

Financing

Rate

Received

by

the

Fund

Payment

Frequency

Counterparty

Termination

Date

Credit

Rating

(a)

Notional

Amount

(000)

(b)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

Verizon

Communications,

Inc.

.............

1.00

%

Quarterly

Deutsche

Bank

AG

12/20/24

BBB+

USD

796

$

4,412

$

2,125

$

2,287

Bank

of

America

Corp.

..

1.00

Quarterly

JPMorgan

Chase

Bank

NA

12/20/28

A-

USD

840

11,869

4,759

7,110

Teck

Resources

Ltd.

....

5.00

Quarterly

Citibank

NA

12/20/28

BBB-

USD

269

45,901

40,629

5,272

$

62,182

$

47,513

$

14,669

(a)

Using

the

rating

of

the

issuer

or

the

underlying

securities

of

the

index,

as

applicable,

provided

by

S&P

Global

Ratings.

(b)

The

maximum

potential

amount

the

Fund

may

pay

should

a

negative

credit

event

take

place

as

defined

under

the

terms

of

the

agreement.

Balances

Reported

in

the

Statement

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps

and

OTC

Swaps

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Centrally

Cleared

Swaps

(a)

..........................................................

$

47,315

$

(37,589)

$

2,479

$

(19,777)

OTC

Swaps

...................................................................

47,513

(64,496)

14,728

(3,932)

(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.

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

Futures

contracts

Unrealized

appreciation

on

futures

contracts

(a)

......

$

—

$

—

$

106,882

$

—

$

6,323,110

$

—

$

6,429,992

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

2,479

—

—

—

—

2,479

Swaps

—

OTC

Unrealized

appreciation

on

OTC

swaps;

Swap

premiums

paid

................................

—

62,241

—

—

—

—

62,241

$

—

$

64,720

$

106,882

$

—

$

6,323,110

$

—

$

6,494,712

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

48

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

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

......

$

—

$

—

$

—

$

352,852

$

9,072

$

—

$

361,924

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

19,777

—

—

—

—

19,777

Swaps

—

OTC

Unrealized

depreciation

on

OTC

swaps;

Swap

premiums

received

.............................

—

68,428

—

—

—

—

68,428

$

—

$

88,205

$

—

$

352,852

$

9,072

$

—

$

450,129

(a)

Net

cumulative

unrealized

appreciation

(depreciation)

on

futures

contracts

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).

For

the

period

ended

December

31,

2023,

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

.......................

$

—

$

—

$

(22,971)

$

(158,353)

$

(7,380,642)

$

—

$

(7,561,966)

Options

purchased

(a)

.....................

—

—

1,123,550

—

—

—

1,123,550

Options

written

........................

—

—

(34,778)

—

—

—

(34,778)

Swaps

..............................

—

(226,385)

—

—

—

—

(226,385)

$

—

$

(226,385)

$

1,065,801

$

(158,353)

$

(7,380,642)

$

—

$

(6,699,579)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

412,220

$

(634,618)

$

7,812,444

$

—

$

7,590,046

Swaps

..............................

—

9,942

—

—

—

—

9,942

$

—

$

9,942

$

412,220

$

(634,618)

$

7,812,444

$

—

$

7,599,988

(a)

Options

purchased

are

included

in

net

realized

gain

(loss)

from

investments

—

unaffiliated.

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

long

..................................................................................

$

227,577,951

Average

notional

value

of

contracts

—

short

.................................................................................

$

28,106,284

Options

Average

value

of

option

contracts

purchased

................................................................................

$

252,455

Average

value

of

option

contracts

written

...................................................................................

$

32,838

Credit

default

swaps

Average

notional

value

—

buy

protection

...................................................................................

$

13,625,194

Average

notional

value

—

sell

protection

...................................................................................

$

2,254,289

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

46,298

$

41,935

Swaps

—

centrally

cleared

..............................................................................

277

—

Swaps

—

OTC

(a)

.....................................................................................

62,241

68,428

Total

derivative

assets

and

liabilities

in

the

Statement

of

Assets

and

Liabilities

.............................................

$

108,816

$

110,363

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(46,575)

(41,935)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

62,241

$

68,428

(a)

Includes

unrealized

appreciation

(depreciation)

on

OTC

swaps

and

swap

premiums

(paid/received)

in

the

Statement

of

Assets

and

Liabilities.

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

49

Fair

Value

Hierarchy

as

of Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund's

financial

instruments

into

major

categories

is

disclosed

in

the Schedule

of

Investments

above.

The

following

tables

present

the

Fund's

derivative

assets

and

liabilities

by

counterparty

net

of

amounts

available

for

offset

under

an

MNA

and

net

of

the

related

collateral

received

and

pledged

by

the

Fund:

Counterparty

Derivative

Assets

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Received

Cash

Collateral

Received

Net

Amount

of

Derivative

Assets

(b)

Bank

of

America

NA

..............................

$

59

$

(59)

$

—

$

—

$

—

Citibank

NA

....................................

45,901

—

—

—

45,901

Deutsche

Bank

AG

...............................

4,412

(4,412)

—

—

—

JPMorgan

Chase

Bank

NA

..........................

11,869

—

—

—

11,869

$

62,241

$

(4,471)

$

—

$

—

$

57,770

Counterparty

Derivative

Liabilities

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Pledged

Cash

Collateral

Pledged

Net

Amount

of

Derivative

Liabilities

(c)

Bank

of

America

NA

..............................

$

26,911

$

(59)

$

—

$

—

$

26,852

Barclays

Bank

plc

................................

8,810

—

—

—

8,810

Deutsche

Bank

AG

...............................

22,288

(4,412)

—

—

17,876

Goldman

Sachs

International

........................

3,868

—

—

—

3,868

Morgan

Stanley

&

Co.

International

plc

..................

6,551

—

—

—

6,551

$

68,428

$

(4,471)

$

—

$

—

$

63,957

(a)

The

amount

of

derivatives

available

for

offset

is

limited

to

the

amount

of

derivative

assets

and/or

liabilities

that

are

subject

to

an

MNA.

(b)

Net

amount

represents

the

net

amount

receivable

from

the

counterparty

in

the

event

of

default.

(c)

Net

amount

represents

the

net

amount

payable

due

to

the

counterparty

in

the

event

of

default.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

...................................

$

—

$

121,517,706

$

—

$

121,517,706

Common

Stocks

Aerospace

&

Defense

....................................

1,611,192

—

—

1,611,192

Air

Freight

&

Logistics

....................................

1,649,814

—

—

1,649,814

Banks

...............................................

2,767,639

1,822,059

—

4,589,698

Biotechnology

.........................................

2,165,706

—

—

2,165,706

Building

Products

.......................................

3,206,662

—

—

3,206,662

Capital

Markets

........................................

2,090,712

—

—

2,090,712

Chemicals

............................................

—

1,792,171

—

1,792,171

Commercial

Services

&

Supplies

.............................

1,577,364

—

—

1,577,364

Consumer

Finance

......................................

2,105,026

—

—

2,105,026

Consumer

Staples

Distribution

&

Retail

........................

1,561,978

—

—

1,561,978

Diversified

REITs

.......................................

155,820

96,829

—

252,649

Diversified

Telecommunication

Services

........................

1,554,210

1,798,017

—

3,352,227

Electronic

Equipment,

Instruments

&

Components

.................

1,196,498

—

—

1,196,498

Energy

Equipment

&

Services

..............................

1,673,214

—

—

1,673,214

Financial

Services

......................................

—

71,766

—

71,766

Food

Products

.........................................

2,265,900

2,372,880

—

4,638,780

Ground

Transportation

...................................

2,165,632

—

—

2,165,632

Health

Care

Equipment

&

Supplies

...........................

1,510,355

2,041,722

—

3,552,077

Health

Care

Providers

&

Services

............................

2,000,586

—

20,085

2,020,671

Health

Care

REITs

......................................

1,316,951

170,891

—

1,487,842

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

50

Level

1

Level

2

Level

3

Total

Household

Durables

.....................................

$

—

$

1,692,789

$

—

$

1,692,789

Industrial

REITs

........................................

680,184

724,014

—

1,404,198

Insurance

............................................

1,178,925

2,891,829

—

4,070,754

IT

Services

...........................................

2,123,707

323,833

—

2,447,540

Machinery

............................................

2,138,154

—

—

2,138,154

Media

...............................................

—

—

32,768

32,768

Office

REITs

..........................................

519,098

—

—

519,098

Oil,

Gas

&

Consumable

Fuels

...............................

1,101,429

1,647,797

—

2,749,226

Pharmaceuticals

.......................................

—

5,857,237

—

5,857,237

Professional

Services

....................................

1,889,799

1,962,443

—

3,852,242

Real

Estate

Management

&

Development

.......................

123,060

681,663

—

804,723

Residential

REITs

.......................................

749,220

—

—

749,220

Retail

REITs

..........................................

—

350,379

—

350,379

Semiconductors

&

Semiconductor

Equipment

....................

—

3,954,783

—

3,954,783

Software

.............................................

5,712,872

—

—

5,712,872

Specialized

REITs

......................................

1,851,524

—

—

1,851,524

Technology

Hardware,

Storage

&

Peripherals

....................

2,775,127

—

—

2,775,127

Textiles,

Apparel

&

Luxury

Goods

............................

—

1,624,262

—

1,624,262

Tobacco

.............................................

2,020,086

—

—

2,020,086

Corporate

Bonds

Aerospace

&

Defense

....................................

—

8,084,712

—

8,084,712

Air

Freight

&

Logistics

....................................

—

130,583

—

130,583

Automobile

Components

..................................

—

1,084,476

—

1,084,476

Automobiles

..........................................

—

4,247,087

—

4,247,087

Banks

...............................................

—

41,990,014

—

41,990,014

Beverages

...........................................

—

970,981

—

970,981

Biotechnology

.........................................

—

6,726,626

—

6,726,626

Broadline

Retail

........................................

—

255,493

—

255,493

Building

Products

.......................................

—

726,003

—

726,003

Capital

Markets

........................................

—

19,265,979

—

19,265,979

Chemicals

............................................

—

2,101,560

—

2,101,560

Commercial

Services

&

Supplies

.............................

—

2,533,240

—

2,533,240

Communications

Equipment

................................

—

315,585

—

315,585

Construction

&

Engineering

................................

—

329,571

—

329,571

Construction

Materials

....................................

—

200,222

—

200,222

Consumer

Finance

......................................

—

8,190,931

—

8,190,931

Consumer

Staples

Distribution

&

Retail

........................

—

711,252

—

711,252

Containers

&

Packaging

..................................

—

2,561,862

—

2,561,862

Distributors

...........................................

—

105,823

—

105,823

Diversified

Consumer

Services

..............................

—

487,029

—

487,029

Diversified

REITs

.......................................

—

3,470,562

—

3,470,562

Diversified

Telecommunication

Services

........................

—

4,081,093

—

4,081,093

Electric

Utilities

........................................

—

13,075,223

—

13,075,223

Electrical

Equipment

.....................................

—

213,594

—

213,594

Electronic

Equipment,

Instruments

&

Components

.................

—

178,077

—

178,077

Energy

Equipment

&

Services

..............................

—

2,329,859

—

2,329,859

Entertainment

.........................................

—

425,410

—

425,410

Financial

Services

......................................

—

3,942,852

—

3,942,852

Food

Products

.........................................

—

2,009,304

—

2,009,304

Gas

Utilities

...........................................

—

1,200,371

—

1,200,371

Ground

Transportation

...................................

—

3,754,755

—

3,754,755

Health

Care

Equipment

&

Supplies

...........................

—

1,474,742

—

1,474,742

Health

Care

Providers

&

Services

............................

—

4,393,718

—

4,393,718

Health

Care

REITs

......................................

—

883,370

—

883,370

Health

Care

Technology

..................................

—

371,488

—

371,488

Hotel

&

Resort

REITs

....................................

—

388,743

—

388,743

Hotels,

Restaurants

&

Leisure

..............................

—

3,914,897

—

3,914,897

Household

Durables

.....................................

—

385,211

—

385,211

Household

Products

.....................................

—

64,231

—

64,231

Independent

Power

and

Renewable

Electricity

Producers

............

—

714,703

—

714,703

Industrial

Conglomerates

..................................

—

425,911

—

425,911

Insurance

............................................

—

2,486,981

—

2,486,981

Interactive

Media

&

Services

...............................

—

290,106

—

290,106

IT

Services

...........................................

—

1,108,793

—

1,108,793

Fair

Value

Hierarchy

as

of Period

End

(continued)

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

Schedule

of

Investments

51

Level

1

Level

2

Level

3

Total

Leisure

Products

.......................................

$

—

$

73,324

$

—

$

73,324

Life

Sciences

Tools

&

Services

..............................

—

313,255

—

313,255

Machinery

............................................

—

1,114,301

—

1,114,301

Media

...............................................

—

5,757,147

—

5,757,147

Metals

&

Mining

........................................

—

2,718,966

—

2,718,966

Mortgage

Real

Estate

Investment

Trusts

(REITs)

..................

—

46,323

—

46,323

Multi-Utilities

..........................................

—

2,925,859

—

2,925,859

Office

REITs

..........................................

—

1,231,421

—

1,231,421

Oil,

Gas

&

Consumable

Fuels

...............................

—

20,874,756

—

20,874,756

Paper

&

Forest

Products

..................................

—

38,486

—

38,486

Passenger

Airlines

......................................

—

508,948

—

508,948

Personal

Care

Products

..................................

—

286,739

—

286,739

Pharmaceuticals

.......................................

—

5,955,517

—

5,955,517

Professional

Services

....................................

—

281,488

—

281,488

Real

Estate

Management

&

Development

.......................

—

141,832

—

141,832

Residential

REITs

.......................................

—

461,085

—

461,085

Retail

REITs

..........................................

—

2,265,740

—

2,265,740

Semiconductors

&

Semiconductor

Equipment

....................

—

4,506,669

—

4,506,669

Software

.............................................

—

6,155,543

—

6,155,543

Specialized

REITs

......................................

—

1,918,483

—

1,918,483

Specialty

Retail

........................................

—

2,026,749

—

2,026,749

Technology

Hardware,

Storage

&

Peripherals

....................

—

596,426

—

596,426

Textiles,

Apparel

&

Luxury

Goods

............................

—

961,807

—

961,807

Tobacco

.............................................

—

2,530,842

—

2,530,842

Trading

Companies

&

Distributors

............................

—

3,783,340

—

3,783,340

Wireless

Telecommunication

Services

.........................

—

5,700,315

—

5,700,315

Equity-Linked

Notes

......................................

—

36,275,850

—

36,275,850

Floating

Rate

Loan

Interests

Aerospace

&

Defense

....................................

—

1,424,012

—

1,424,012

Automobile

Components

..................................

—

290,528

—

290,528

Automobiles

..........................................

—

117,980

—

117,980

Beverages

...........................................

—

455,583

—

455,583

Broadline

Retail

........................................

—

454,735

113,018

567,753

Building

Products

.......................................

—

549,026

—

549,026

Capital

Markets

........................................

—

937,218

—

937,218

Chemicals

............................................

—

1,413,994

276,311

1,690,305

Commercial

Services

&

Supplies

.............................

—

1,591,754

51,125

1,642,879

Communications

Equipment

................................

—

246,176

—

246,176

Construction

&

Engineering

................................

—

465,235

—

465,235

Construction

Materials

....................................

—

408,653

—

408,653

Consumer

Staples

Distribution

&

Retail

........................

—

195,219

—

195,219

Containers

&

Packaging

..................................

—

501,872

—

501,872

Distributors

...........................................

—

263,278

—

263,278

Diversified

Consumer

Services

..............................

—

966,856

—

966,856

Diversified

REITs

.......................................

—

59,567

—

59,567

Diversified

Telecommunication

Services

........................

—

1,562,863

81,433

1,644,296

Electrical

Equipment

.....................................

—

134,717

—

134,717

Electronic

Equipment,

Instruments

&

Components

.................

—

97,049

—

97,049

Entertainment

.........................................

—

1,603,051

—

1,603,051

Financial

Services

......................................

—

1,603,270

98,241

1,701,511

Food

Products

.........................................

—

1,363,436

—

1,363,436

Ground

Transportation

...................................

—

423,119

—

423,119

Health

Care

Equipment

&

Supplies

...........................

—

856,319

—

856,319

Health

Care

Providers

&

Services

............................

—

795,976

—

795,976

Health

Care

Technology

..................................

—

909,126

—

909,126

Hotels,

Restaurants

&

Leisure

..............................

—

2,607,533

11,000

2,618,533

Household

Durables

.....................................

—

666,062

—

666,062

Independent

Power

and

Renewable

Electricity

Producers

............

—

254,648

—

254,648

Industrial

Conglomerates

..................................

—

104,024

—

104,024

Insurance

............................................

—

1,649,072

—

1,649,072

Interactive

Media

&

Services

...............................

—

364,177

—

364,177

IT

Services

...........................................

—

1,112,597

—

1,112,597

Leisure

Products

.......................................

—

157,324

40,951

198,275

Life

Sciences

Tools

&

Services

..............................

—

817,568

—

817,568

Fair

Value

Hierarchy

as

of Period

End

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

Schedule

of

Investments

(continued)

December

31,

2023

BlackRock

Managed

Income

Fund

52

See

notes

to

financial

statements.

Level

1

Level

2

Level

3

Total

Machinery

............................................

$

—

$

2,051,829

$

—

$

2,051,829

Media

...............................................

—

770,726

75,101

845,827

Oil,

Gas

&

Consumable

Fuels

...............................

—

830,913

—

830,913

Passenger

Airlines

......................................

—

1,037,082

—

1,037,082

Personal

Care

Products

..................................

—

478,267

—

478,267

Pharmaceuticals

.......................................

—

1,026,950

—

1,026,950

Professional

Services

....................................

—

1,507,833

98,336

1,606,169

Real

Estate

Management

&

Development

.......................

—

79,327

70,005

149,332

Semiconductors

&

Semiconductor

Equipment

....................

—

170,577

—

170,577

Software

.............................................

—

3,560,135

—

3,560,135

Specialty

Retail

........................................

—

494,617

48,279

542,896

Textiles,

Apparel

&

Luxury

Goods

............................

—

43,259

32,671

75,930

Trading

Companies

&

Distributors

............................

—

550,600

110,421

661,021

Transportation

Infrastructure

...............................

—

180,620

122,004

302,624

Wireless

Telecommunication

Services

.........................

—

226,149

—

226,149

Foreign

Agency

Obligations

.................................

—

1,259,182

—

1,259,182

Investment

Companies

....................................

173,575,655

—

—

173,575,655

Non-Agency

Mortgage-Backed

Securities

........................

—

10,964,266

—

10,964,266

Other

Interests

..........................................

—

—

—

—

Preferred

Securities

.......................................

—

6,577,051

—

6,577,051

Warrants

..............................................

1,008

—

—

1,008

Short-Term

Securities

Money

Market

Funds

......................................

26,641,869

—

—

26,641,869

$

255,656,976

$

474,682,304

$

1,281,749

$

731,621,029

Derivative

Financial

Instruments

(a)

Assets

Credit

contracts

...........................................

$

—

$

17,207

$

—

$

17,207

Equity

contracts

...........................................

106,882

—

—

106,882

Interest

rate

contracts

.......................................

6,323,110

—

—

6,323,110

Liabilities

Credit

contracts

...........................................

—

(23,709)

—

(23,709)

Foreign

currency

exchange

contracts

............................

(352,852)

—

—

(352,852)

Interest

rate

contracts

.......................................

(9,072)

—

—

(9,072)

$

6,068,068

$

(6,502)

$

—

$

6,061,566

(a)

Derivative

financial

instruments

are

swaps

and

futures

contracts.

Swaps

and

futures

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument.

Fair

Value

Hierarchy

as

of Period

End

(continued)

Statement

of

Assets

and

Liabilities

December

31,

2023

53

Financial

Statements

BlackRock

Managed

Income

Fund

ASSETS

Investments,

at

value

—

unaffiliated

(a)

........................................................................................

$

531,403,505‌

Investments,

at

value

—

affiliated

(b)

..........................................................................................

200,217,524‌

Cash

.............................................................................................................

586,782‌

Cash

pledged:

–‌

Futures

contracts

....................................................................................................

5,588,000‌

Centrally

cleared

swaps

................................................................................................

43,000‌

Foreign

currency,

at

value

(c)

...............................................................................................

48,681‌

Receivables:

–‌

Investments

sold

....................................................................................................

295,464‌

Securities

lending

income

—

affiliated

......................................................................................

723‌

Swaps  

..........................................................................................................

1,509‌

Capital

shares

sold

...................................................................................................

964,588‌

Dividends

—

unaffiliated

...............................................................................................

115,205‌

Dividends

—

affiliated

.................................................................................................

683,689‌

Interest

—

unaffiliated

.................................................................................................

5,068,738‌

From

the

Manager

...................................................................................................

64,623‌

Variation

margin

on

futures

contracts

.......................................................................................

46,298‌

Variation

margin

on

centrally

cleared

swaps

..................................................................................

277‌

Swap

premiums

paid

...................................................................................................

47,513‌

Unrealized

appreciation

on:

–‌

OTC

swaps

........................................................................................................

14,728‌

Prepaid

expenses

.....................................................................................................

71,955‌

Total

assets

.........................................................................................................

745,262,802‌

LIABILITIES

Payables:

–‌

Investments

purchased

................................................................................................

924,504‌

Administration

fees

...................................................................................................

86‌

Capital

shares

redeemed

...............................................................................................

2,720,174‌

Income

dividend

distributions

............................................................................................

59,879‌

Interest

expense

....................................................................................................

3,654‌

Investment

advisory

fees

..............................................................................................

180,954‌

Trustees'

and

Officer's

fees

.............................................................................................

2,901‌

Other

affiliate

fees

...................................................................................................

1,880‌

Professional

fees

....................................................................................................

111,632‌

Service

and

distribution

fees

.............................................................................................

84,620‌

Variation

margin

on

futures

contracts

.......................................................................................

41,935‌

Other

accrued

expenses

...............................................................................................

306,257‌

Swap

premiums

received

................................................................................................

64,496‌

Unrealized

depreciation

on:

–‌

OTC

swaps

........................................................................................................

3,932‌

Total

liabilities

........................................................................................................

4,506,904‌

Commitments

and

contingent

liabilities

$

–‌

NET

ASSETS

........................................................................................................

$

740,755,898‌

NET

ASSETS

CONSIST

OF:

Paid-in

capital

........................................................................................................

$

821,952,265‌

Accumulated

loss

.....................................................................................................

(

81,196,367‌)

NET

ASSETS

........................................................................................................

$

740,755,898‌

(a)

  Investments,

at

cost

—

unaffiliated

.......................................................................................

$

524,542,401

(b)

  Investments,

at

cost

—

affiliated

.........................................................................................

$

205,737,931

(c)

  Foreign

currency,

at

cost

..............................................................................................

$

47,969

See

notes

to

financial

statements.

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2023

2023

BlackRock

Annual

Report

to

Shareholders

54

BlackRock

Managed

Income

Fund

NET

ASSET

VALUE

Institutional

Net

assets

.........................................................................................................

$

342,753,550‌

Shares

outstanding

..................................................................................................

36,533,496‌

Net

asset

value

.....................................................................................................

$

9.38‌

Shares

authorized

...................................................................................................

Unlimited

Par

value

.........................................................................................................

$

0.001‌

Investor

A

Net

assets

.........................................................................................................

$

303,048,143‌

Shares

outstanding

..................................................................................................

32,291,157‌

Net

asset

value

.....................................................................................................

$

9.38‌

Shares

authorized

...................................................................................................

Unlimited

Par

value

.........................................................................................................

$

0.001‌

Investor

C

Net

assets

.........................................................................................................

$

21,541,181‌

Shares

outstanding

..................................................................................................

2,293,040‌

Net

asset

value

.....................................................................................................

$

9.39‌

Shares

authorized

...................................................................................................

Unlimited

Par

value

.........................................................................................................

$

0.001‌

Class

K

Net

assets

.........................................................................................................

$

73,413,024‌

Shares

outstanding

..................................................................................................

7,803,649‌

Net

asset

value

.....................................................................................................

$

9.41‌

Shares

authorized

...................................................................................................

Unlimited

Par

value

.........................................................................................................

$

0.001‌

See

notes

to

financial

statements.

Statement

of

Operations

Year

Ended

December

31,

2023

55

Financial

Statements

See

notes

to

financial

statements.

BlackRock

Managed

Income

Fund

INVESTMENT

INCOME

Dividends

—

unaffiliated

...............................................................................................

$

2,477,984‌

Dividends

—

affiliated

.................................................................................................

9,324,540‌

Interest

—

unaffiliated

.................................................................................................

29,541,160‌

Securities

lending

income

—

affiliated

—

net

.................................................................................

45,141‌

Foreign

taxes

withheld

................................................................................................

(131,985‌)

Foreign

withholding

tax

claims

...........................................................................................

22,136‌

Total

investment

income

.................................................................................................

41,278,976‌

EXPENSES

Investment

advisory

..................................................................................................

2,622,174‌

Service

and

distribution

—

class

specific

....................................................................................

1,003,484‌

Transfer

agent

—

class

specific

..........................................................................................

453,643‌

Accounting

services

..................................................................................................

375,377‌

Administration

.....................................................................................................

312,177‌

Professional

.......................................................................................................

212,664‌

Administration

—

class

specific

..........................................................................................

149,839‌

Registration

.......................................................................................................

128,566‌

Custodian

.........................................................................................................

91,566‌

Printing

and

postage

.................................................................................................

48,036‌

Trustees

and

Officer

..................................................................................................

12,196‌

Miscellaneous

......................................................................................................

76,644‌

Total

expenses

excluding

interest

expense

.....................................................................................

5,486,366‌

Interest

expense

....................................................................................................

2,327‌

Total

expenses

.......................................................................................................

5,488,693‌

Less:

–‌

Administration

fees

waived

.............................................................................................

(312,177‌)

Administration

fees

waived

by

the

Manager

—

class

specific

.......................................................................

(127,086‌)

Fees

waived

and/or

reimbursed

by

the

Manager

...............................................................................

(1,042,476‌)

Transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific

..........................................................

(139,539‌)

Total

expenses

after

fees

waived

and/or

reimbursed

..............................................................................

3,867,415‌

Net

investment

income

..................................................................................................

37,411,561‌

REALIZED

AND

UNREALIZED

GAIN

(LOSS)

$

34,148,873‌

Net

realized

gain

(loss)

from:

$

–‌

Investments

—

unaffiliated

...........................................................................................

(25,683,634‌)

Investments

—

affiliated

.............................................................................................

(2,991,381‌)

Foreign

currency

transactions

.........................................................................................

6,768‌

Futures

contracts

..................................................................................................

(7,561,966‌)

Options

written

...................................................................................................

(34,778‌)

Swaps

.........................................................................................................

(226,385‌)

A

(36,491,376‌)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments

—

unaffiliated

...........................................................................................

56,474,442‌

Investments

—

affiliated

.............................................................................................

6,556,580‌

Foreign

currency

translations

..........................................................................................

6,151‌

Futures

contracts

..................................................................................................

7,590,046‌

Swaps

.........................................................................................................

9,942‌

Unfunded

floating

rate

loan

interests

.....................................................................................

3,088‌

A

70,640,249‌

Net

realized

and

unrealized

gain

...........................................................................................

34,148,873‌

NET

INCREASE

IN

NET

ASSETS

RESULTING

FROM

OPERATIONS

..................................................................

$

71,560,434‌

Statements

of

Changes

in

Net

Assets

2023

BlackRock

Annual

Report

to

Shareholders

56

BlackRock

Managed

Income

Fund

Year

Ended

12/31/23

Year

Ended

12/31/22

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

..............................................................................

$

37,411,561

‌

$

36,253,780

‌

Net

realized

loss

..................................................................................

(

36,491,376

)

(

51,470,868

)

Net

change

in

unrealized

appreciation

(depreciation)

..........................................................

70,640,249

‌

(

85,200,198

)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.....................................................

71,560,434

‌

(100,417,286

)

DISTRIBUTIONS

TO

SHAREHOLDERS

(a)

Institutional

.....................................................................................

(

17,308,536

)

(

18,874,692

)

Investor

A

......................................................................................

(

15,115,111

)

(

14,291,989

)

Investor

C

......................................................................................

(

901,543

)

(

837,475

)

Class

K

.......................................................................................

(

3,877,758

)

(

4,048,256

)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

...................................................

(37,202,948

)

(38,052,412

)

CAPITAL

SHARE

TRANSACTIONS

Net

decrease

in

net

assets

derived

from

capital

share

transactions

...................................................

(60,513,230

)

(75,228,634

)

NET

ASSETS

Total

decrease

in

net

assets

............................................................................

(

26,155,744

)

(

213,698,332

)

Beginning

of

year

....................................................................................

766,911,642

‌

980,609,974

‌

End

of

year

........................................................................................

$

740,755,898

‌

$

766,911,642

‌

(a)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

See

notes

to

financial

statements.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

57

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Excludes

equity-linked

notes.

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Managed

Income

Fund

Institutional

Year

Ended

12/31/23

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Net

asset

value,

beginning

of

year

..............................

$

8.95

‌

$

10.31

‌

$

10.28

‌

$

10.08

‌

$

9.56

‌

Net

investment

income

(a)

....................................

0

.47

‌

0

.38

‌

0

.33

‌

0

.35

‌

0

.39

‌

Net

realized

and

unrealized

gain

(loss)

...........................

0

.43

‌

(

1

.34

)

0

.24

‌

0

.21

‌

0

.52

‌

Net

increase

(decrease)

from

investment

operations

...................

0.90

‌

(0.96

)

0.57

‌

0.56

‌

0.91

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.................................

(

0

.47

)

(

0

.39

)

(

0

.34

)

(

0

.34

)

(

0

.39

)

From

net

realized

gain

......................................

—

‌

(

0

.01

)

(

0

.20

)

(

0

.02

)

—

‌

Total

distributions

..........................................

(0.47

)

(0.40

)

(0.54

)

(0.36

)

(0.39

)

Net

asset

value,

end

of

year

..................................

$

9.38

‌

$

8.95

‌

$

10.31

‌

$

10.28

‌

$

10.08

‌

Total

Return

(c)

—

—

—

—

—

Based

on

net

asset

value

.....................................

10.31

%

(9.27

)%

5.61

%

5.78

%

9.63

%

Ratios

to

Average

Net

Assets

(d)

Total

expen

ses

............................................

0.63

%

0.60

%

0.61

%

0.62

%

0.59

%

Total

expenses

after

fees

waived

and/or

reimbursed

...................

0.39

%

0.41

%

0.40

%

0.38

%

0.34

%

Net

investment

income

......................................

5.12

%

4.06

%

3.17

%

3.51

%

3.90

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...................................

$

342,754

‌

$

340,824

‌

$

447,218

‌

$

317,679

‌

$

199,220

‌

Portfolio

turnover

rate

(e)

.......................................

65

%

60

%

45

%

76

%

71

%

Year

Ended

12/31/23

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Portfolio

turnover

rate

(including

equity-linked

notes)

...................................

95%

103%

88%

94%

91%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2023

BlackRock

Annual

Report

to

Shareholders

58

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Excludes

equity-linked

notes.

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Managed

Income

Fund

Investor

A

Year

Ended

12/31/23

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Net

asset

value,

beginning

of

year

..............................

$

8.95

‌

$

10.31

‌

$

10.28

‌

$

10.08

‌

$

9.56

‌

Net

investment

income

(a)

....................................

0

.44

‌

0

.36

‌

0

.30

‌

0

.32

‌

0

.36

‌

Net

realized

and

unrealized

gain

(loss)

...........................

0

.43

‌

(

1

.34

)

0

.24

‌

0

.22

‌

0

.52

‌

Net

increase

(decrease)

from

investment

operations

...................

0.87

‌

(0.98

)

0.54

‌

0.54

‌

0.88

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.................................

(

0

.44

)

(

0

.37

)

(

0

.31

)

(

0

.32

)

(

0

.36

)

From

net

realized

gain

......................................

—

‌

(

0

.01

)

(

0

.20

)

(

0

.02

)

—

‌

Total

distributions

..........................................

(0.44

)

(0.38

)

(0.51

)

(0.34

)

(0.36

)

Net

asset

value,

end

of

year

..................................

$

9.38

‌

$

8.95

‌

$

10.31

‌

$

10.28

‌

$

10.08

‌

Total

Return

(c)

—

—

—

—

—

Based

on

net

asset

value

.....................................

10.03

%

(9.51

)%

5.36

%

5.51

%

9.36

%

Ratios

to

Average

Net

Assets

(d)

Total

expen

ses

............................................

0.83

%

0.81

%

0.82

%

0.83

%

0.80

%

Total

expenses

after

fees

waived

and/or

reimbursed

...................

0.64

%

0.66

%

0.65

%

0.62

%

0.59

%

Net

investment

income

......................................

4.87

%

3.83

%

2.91

%

3.27

%

3.65

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...................................

$

303,048

‌

$

322,849

‌

$

401,138

‌

$

261,322

‌

$

190,848

‌

Portfolio

turnover

rate

(e)

.......................................

65

%

60

%

45

%

76

%

71

%

Year

Ended

12/31/23

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Portfolio

turnover

rate

(including

equity-linked

notes)

...................................

95%

103%

88%

94%

91%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

59

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Excludes

equity-linked

notes.

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Managed

Income

Fund

Investor

C

Year

Ended

12/31/23

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Net

asset

value,

beginning

of

year

..............................

$

8.96

‌

$

10.31

‌

$

10.29

‌

$

10.09

‌

$

9.56

‌

Net

investment

income

(a)

....................................

0

.38

‌

0

.29

‌

0

.23

‌

0

.25

‌

0

.29

‌

Net

realized

and

unrealized

gain

(loss)

...........................

0

.42

‌

(

1

.33

)

0

.23

‌

0

.21

‌

0

.53

‌

Net

increase

(decrease)

from

investment

operations

...................

0.80

‌

(1.04

)

0.46

‌

0.46

‌

0.82

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.................................

(

0

.37

)

(

0

.30

)

(

0

.24

)

(

0

.24

)

(

0

.29

)

From

net

realized

gain

......................................

—

‌

(

0

.01

)

(

0

.20

)

(

0

.02

)

—

‌

Total

distributions

..........................................

(0.37

)

(0.31

)

(0.44

)

(0.26

)

(0.29

)

Net

asset

value,

end

of

year

..................................

$

9.39

‌

$

8.96

‌

$

10.31

‌

$

10.29

‌

$

10.09

‌

Total

Return

(c)

—

—

—

—

—

Based

on

net

asset

value

.....................................

9.18

%

(10.12

)%

4.50

%

4.72

%

8.65

%

Ratios

to

Average

Net

Assets

(d)

Total

expen

ses

............................................

1.60

%

1.59

%

1.59

%

1.60

%

1.58

%

Total

expenses

after

fees

waived

and/or

reimbursed

...................

1.39

%

1.41

%

1.40

%

1.37

%

1.34

%

Net

investment

income

......................................

4.12

%

3.08

%

2.18

%

2.54

%

2.89

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...................................

$

21,541

‌

$

23,296

‌

$

29,565

‌

$

26,419

‌

$

23,347

‌

Portfolio

turnover

rate

(e)

.......................................

65

%

60

%

45

%

76

%

71

%

Year

Ended

12/31/23

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Portfolio

turnover

rate

(including

equity-linked

notes)

...................................

95%

103%

88%

94%

91%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2023

BlackRock

Annual

Report

to

Shareholders

60

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Excludes

equity-linked

notes.

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Managed

Income

Fund

Class

K

Year

Ended

12/31/23

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Net

asset

value,

beginning

of

year

..............................

$

8.98

‌

$

10.33

‌

$

10.30

‌

$

10.11

‌

$

9.58

‌

Net

investment

income

(a)

....................................

0

.47

‌

0

.39

‌

0

.34

‌

0

.36

‌

0

.39

‌

Net

realized

and

unrealized

gain

(loss)

...........................

0

.43

‌

(

1

.33

)

0

.23

‌

0

.20

‌

0

.53

‌

Net

increase

(decrease)

from

investment

operations

...................

0.90

‌

(0.94

)

0.57

‌

0.56

‌

0.92

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.................................

(

0

.47

)

(

0

.40

)

(

0

.34

)

(

0

.35

)

(

0

.39

)

From

net

realized

gain

......................................

—

‌

(

0

.01

)

(

0

.20

)

(

0

.02

)

—

‌

Total

distributions

..........................................

(0.47

)

(0.41

)

(0.54

)

(0.37

)

(0.39

)

Net

asset

value,

end

of

year

..................................

$

9.41

‌

$

8.98

‌

$

10.33

‌

$

10.30

‌

$

10.11

‌

Total

Return

(c)

—

—

—

—

—

Based

on

net

asset

value

.....................................

10.35

%

(9.10

)%

5.66

%

5.72

%

9.78

%

Ratios

to

Average

Net

Assets

(d)

Total

expen

ses

............................................

0.54

%

0.52

%

0.52

%

0.52

%

0.50

%

Total

expenses

after

fees

waived

and/or

reimbursed

...................

0.34

%

0.36

%

0.35

%

0.33

%

0.29

%

Net

investment

income

......................................

5.17

%

4.13

%

3.22

%

3.58

%

3.97

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...................................

$

73,413

‌

$

79,942

‌

$

102,690

‌

$

83,808

‌

$

59,493

‌

Portfolio

turnover

rate

(e)

.......................................

65

%

60

%

45

%

76

%

71

%

Year

Ended

12/31/23

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Portfolio

turnover

rate

(including

equity-linked

notes)

...................................

95%

103%

88%

94%

91%

See

notes

to

financial

statements.

Notes

to

Financial

Statements

61

Notes

to

Financial

Statements

1.

ORGANIZATION 

BlackRock

Funds

II (the

“Trust”)

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

as

an

open-end

management

investment

company.

The Trust

is

organized

as

a Massachusetts

business

trust.

BlackRock

Managed

Income

Fund

(the

“Fund”)

is

a

series

of

the

Trust.

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

and

Class K

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).

(a)

Investor

A

Shares

may

be

subject

to

a

CDSC

for

certain

redemptions

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

(b)

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

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

dates.

Non-cash

dividends,

if

any,

are

recorded

on

the

ex-dividend

dates

at

fair

value.

Dividends

from

foreign

securities

where

the

ex-dividend

dates

may

have

passed

are

subsequently

recorded

when

the

Fund

is

informed

of

the

ex-dividend

dates.

Under

the

applicable

foreign

tax

laws,

a

withholding

tax

at

various

rates

may

be

imposed

on

capital

gains,

dividends

and

interest.

Upon

notification

from

issuers,

a

portion

of

the

dividend

income

received

from

a

real

estate

investment

trust

may

be

redesignated

as

a

reduction

of

cost

of

the

related

investment

and/or

realized

gain.

Interest

income,

including

amortization

and

accretion

of

premiums

and

discounts

on

debt

securities,

is

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

December

31,

2023

,

if

any,

are

disclosed

in

the  Statement

of

Assets

and

Liabilities.

The

Fund

files

withholding

tax

reclaims

in

certain

jurisdictions

to

recover

a

portion

of

amounts

previously

withheld.

The

Fund

may

record

a

reclaim

receivable

based

on

collectability,

which

includes

factors

such

as

the

jurisdiction’s

applicable

laws,

payment

history

and

market

convention.

The Statement

of

Operations

includes

tax

reclaims

recorded

as

well

as

professional

and

other

fees,

if

any,

associated

with

recovery

of

foreign

withholding

taxes.  

Share

Class

Initial

Sales

Charge

Contingent

Deferred

Sales

Charge

(“CDSC”)

Conversion

Privilege

Institutional

and

Class

K

Shares

...................................

No

No

None

Investor

A

Shares

............................................

Yes

No

(a)

None

Investor

C

Shares

...........................................

No

Yes

(b)

To

Investor

A

Shares

after

approximately

8

years

Notes

to

Financial

Statements

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

62

Bank

Overdraft:

The

Fund

had

outstanding

cash

disbursements

exceeding

deposited

cash

amounts

at

the

custodian

during

the

reporting

period.

The

Fund

is

obligated

to

repay

the

custodian

for

any

overdraft,

including

any

related

costs

or

expenses,

where

applicable.

For

financial

reporting

purposes,

overdraft

fees,

if

any,

are

included

in

interest

expense

in

the

Statement

of

Operations.

Collateralization:

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.  

Distributions:

Distributions

from

net

investment

income

are

declared

daily

and

paid

monthly.

Distributions

of

capital

gains

are

distributed

at

least

annually

and

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.  

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

a

fund

would

receive

to

sell

an

asset

or

pay

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date.

The

Board

of

Trustees

of

the

Trust

(the

“Board”)

has

approved

the

designation

of

the

Fund’s

Manager

as

the

valuation

designee

for

the

Fund.

The

Fund

determines

the

fair

values

of

its

financial

instruments

using

various

independent

dealers

or

pricing

services

under

the

Manager’s

policies.

If

a

security’s

market

price

is

not

readily

available

or

does

not

otherwise

accurately

represent

the

fair

value

of

the

security,

the

security

will

be

valued

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value.

The

Manager

has

formed

a

committee

(the

“Valuation

Committee”)

to

develop

pricing

policies

and

procedures

and

to

oversee

the

pricing

function

for

all

financial

instruments,

with

assistance

from

other

BlackRock

pricing

committees.

Fair

Value

Inputs

and

Methodologies:

The

following

methods

and

inputs

are

used

to

establish

the

fair

value

of

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.  

Fixed-income investments

for

which

market

quotations

are

readily

available

are

generally

valued

using

the

last

available

bid

price

or

current

market

quotations

provided

by

independent

dealers

or

third-party

pricing

services. Floating

rate

loan

interests

are

valued

at

the

mean

of

the

bid

prices

from

one

or

more

independent

brokers

or

dealers

as

obtained

from

a

third-party

pricing

service. Pricing

services

generally

value

fixed-income

securities

assuming

orderly

transactions

of

an

institutional

round

lot

size,

but

a

fund

may

hold

or

transact

in

such

securities

in

smaller,

odd

lot

sizes.

Odd

lots

may

trade

at

lower

prices

than

institutional

round

lots.

The

pricing

services

may

use

matrix

pricing

or

valuation

models

that

utilize

certain

inputs

and

assumptions

to

derive

values,

including

transaction

data

(e.g.,

recent

representative

bids

and

offers),

market

data, credit

quality

information,

perceived

market

movements,

news,

and

other

relevant

information.

Certain

fixed-income

securities,

including

asset-

backed

and

mortgage

related

securities

may

be

valued

based

on

valuation

models

that

consider

the

estimated

cash

flows

of

each

tranche

of

the

entity,

establish

a

benchmark

yield

and

develop

an

estimated

tranche

specific

spread

to

the

benchmark

yield

based

on

the

unique

attributes

of

the

tranche.

The

amortized

cost

method

of

valuation

may

be

used

with

respect

to

debt

obligations

with

sixty

days

or

less

remaining

to

maturity

unless

the

Manager

determines

such

method

does

not

represent

fair

value.

Exchange-traded

funds

(“ETFs”)

and

closed-end

funds 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.

ETFs

and

closed-end

funds

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. 

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

or

trade price

on

the

exchange

where

the

contract

is

traded.

Exchange-traded

options

are

valued

at

the

mean

between

the

last bid

and

ask

prices

at

the

close

of

the

options

market in

which

the

options

trade.

An

exchange-

traded

option

for

which there

is

no

mean

price

is

valued

at

the

last

bid

(long

positions)

or

ask

(short

positions)

price.

If

no

bid

or

ask

price

is

available,

the

prior

day’s

price will

be

used,

unless

it

is

determined

that

the

prior

day’s

price

no

longer

reflects

the

fair

value

of

the

option.

Over-the-counter

(“OTC”)

options

and

options

on

swaps

(“swaptions”)

are

valued

by

an

independent

pricing

service

using

a

mathematical

model,

which

incorporates

a

number

of

market

data

factors,

such

as

the

trades

and

prices

of

the

underlying

instruments.

Swap

agreements

are

valued

utilizing

quotes

received

daily

by

independent pricing

services

or

through

brokers,

which

are

derived

using

daily

swap

curves

and

models

that

incorporate

a

number

of

market

data

factors,

such

as

discounted

cash

flows,

trades

and

values

of

the

underlying

reference

instruments. 

Generally,

trading

in

foreign

instruments

is

substantially

completed

each

day

at

various

times

prior

to

the

close

of

trading

on

the NYSE.

Each

business

day,

the

Fund

uses

current

market

factors

supplied

by

independent

pricing

services

to

value

certain

foreign

instruments

(“Systematic

Fair

Value

Price”).

The

Systematic

Fair

Value

Price

is

designed

to

value

such

foreign

securities

at

fair

value

as

of

the

close

of

trading

on

the

NYSE,

which

follows

the

close

of

the

local

markets.

Notes

to

Financial

Statements

(continued)

63

Notes

to

Financial

Statements

If

events

(e.g.,

market

volatility,

company

announcement or

a

natural

disaster)

occur

that

are

expected

to

materially

affect

the

value

of

such

investment,

or

in

the

event

that application

of

these

methods

of

valuation

results

in

a

price

for

an

investment

that

is

deemed

not

to

be

representative

of

the

market

value

of

such

investment,

or

if

a

price

is

not

available,

the

investment

will

be

valued

by

the

Valuation

Committee

in

accordance

with the

Manager's policies

and

procedures

as

reflecting

fair

value

(“Fair

Valued

Investments”).

The

fair

valuation

approaches

that

may

be

used

by

the

Valuation

Committee include

market

approach,

income

approach

and

cost

approach.

Valuation

techniques

such

as

discounted

cash

flow,

use

of

market

comparables

and

matrix

pricing

are

types

of

valuation

approaches

and

are

typically

used

in

determining

fair

value.

When

determining

the

price

for

Fair

Valued

Investments,

the

Valuation

Committee

seeks

to

determine

the

price

that

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

Valuation

Committee

deems

relevant

and

consistent

with

the

principles

of

fair

value

measurement.

For

investments

in

equity

or

debt

issued

by

privately

held

companies

or

funds

(“Private

Company”

or

collectively,

the

“Private

Companies”)

and

other

Fair

Valued

Investments,

the

fair

valuation

approaches

that

are

used

by

the

Valuation

Committee

and

third-party

pricing

services

utilized

by

the

Valuation

Committee

include one

or

a

combination

of,

but

not

limited

to,

the

following

inputs.  

Investments

in

series

of

preferred

stock

issued

by

Private

Companies

are

typically

valued

utilizing

market

approach

in

determining

the

enterprise

value

of

the

company.

Such

investments

often

contain

rights

and

preferences

that

differ

from

other

series

of

preferred

and

common

stock

of

the

same

issuer.

Enterprise

valuation

techniques

such

as

an

option

pricing

model

(“OPM”),

a

probability

weighted

expected

return

model

(“PWERM”),

current

value

method or

a

hybrid

of

those

techniques

are

used

as

deemed

appropriate

under

the

circumstances.

The

use

of these

valuation techniques

involves

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);

and 

Level

3 —

Unobservable

inputs

based

on

the

best

information

available

in

the

circumstances,

to

the

extent

observable

inputs

are

not

available

(including

the

Valuation

Committee’s

assumptions

used

in

determining

the

fair

value

of

financial

instruments).

The

hierarchy

gives

the

highest

priority

to

unadjusted

quoted

prices

in

active

markets

for

identical

assets

or

liabilities

(Level

1

measurements)

and

the

lowest

priority

to

unobservable

inputs

(Level

3

measurements).

Accordingly,

the

degree

of

judgment

exercised

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

The

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

fair

value

hierarchy

classification

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety. Investments

classified

within

Level

3

have

significant

unobservable

inputs

used

by

the

Valuation

Committee

in

determining

the

price

for

Fair

Valued

Investments.

Level

3

investments

include

equity

or

debt

issued

by

Private

Companies

that

may

not

have

a

secondary

market

and/or

may

have

a

limited

number

of

investors.

The

categorization

of

a

value

determined

for

financial

instruments

is

based

on

the

pricing

transparency

of

the financial

instruments

and

is

not

necessarily

an

indication

of

the

risks

associated

with

investing

in

those

securities.

4.

SECURITIES

AND

OTHER

INVESTMENTS 

Asset-Backed

and

Mortgage-Backed

Securities:

Asset-backed

securities

are

generally

issued

as

pass-through

certificates

or

as

debt

instruments.

Asset-backed

securities

issued

as

pass-through

certificates

represent

undivided

fractional

ownership

interests

in

an

underlying

pool

of

assets.

Asset-backed

securities

issued

as

debt

instruments,

which

are

also

known

as

collateralized

obligations,

are

typically

issued

as

the

debt

of

a

special

purpose

entity

organized

solely

for

the

purpose

of

owning

such

assets

and

issuing

such

debt.

Asset-backed

securities

are

often

backed

by

a

pool

of

assets

representing

the

obligations

of

a

number

of

different

parties.

The

yield

characteristics

of

certain

asset-backed

securities

may

differ

from

traditional

debt

securities.

One

such

major

difference

is

that

all

or

a

principal

part

of

the

obligations

may

be

prepaid

at

any

time

because

the

underlying

assets

(i.e.,

loans)

may

be

prepaid

at

any

time.

As

a

result,

a

decrease

in

interest

rates

in

the

market

may

result

in

increases

in

the

level

of

prepayments

as

borrowers,

particularly

mortgagors,

refinance

and

repay

their

loans.

An

increased

prepayment

rate

with

respect

to

an

asset-backed

security

will

have

the

Standard

Inputs

Generally

Considered

By

The

Valuation

Committee

And

Third-Party

Pricing

Services

Market

approach

........................

(i)        

recent

market

transactions,

including

subsequent

rounds

of

financing,

in

the

underlying

investment

or

comparable  

            issuers;

(ii)        recapitalizations

and

other

transactions

across

the

capital

structure;

and

(iii)      

market

multiples

of

comparable

issuers.

Income

approach

..........................

(i)        

future

cash

flows

discounted

to

present

and

adjusted

as

appropriate

for

liquidity,

credit,

and/or

market

risks;

(ii)        quoted

prices

for

similar

investments

or

assets

in

active

markets;

and

(iii)      

other

risk

factors,

such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks,

            recovery

rates,

liquidation

amounts

and/or

default

rates.

Cost

approach

............................

(i)        

audited

or

unaudited

financial

statements,

investor

communications

and

financial

or

operational

metrics

            issued

by

the

Private

Company;

(ii)        changes

in

the

valuation

of

relevant

indices

or

publicly

traded

companies

comparable

to

the

Private

Company;

(iii)      

relevant

news

and

other

public

sources;

and

(iv)      

known

secondary

market

transactions

in

the

Private

Company’s

interests

and

merger

or

acquisition

activity

            in

companies

comparable

to

the

Private

Company.

Notes

to

Financial

Statements

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

64

effect

of

shortening

the

maturity

of

the

security.

In

addition,

a

fund

may

subsequently

have

to

reinvest

the

proceeds

at

lower

interest

rates.

If

a

fund

has

purchased

such

an

asset-backed

security

at

a

premium,

a

faster

than

anticipated

prepayment

rate

could

result

in

a

loss

of

principal

to

the

extent

of

the

premium

paid. 

For

mortgage

pass-through

securities

(the

“Mortgage

Assets”)

there

are

a

number

of

important

differences

among

the

agencies

and

instrumentalities

of

the

U.S.

Government

that

issue

mortgage-related

securities

and

among

the

securities

that

they

issue.

For

example,

mortgage-related

securities

guaranteed

by

Ginnie

Mae

are

guaranteed

as

to

the

timely

payment

of

principal

and

interest

by

Ginnie

Mae

and

such

guarantee

is

backed

by

the

full

faith

and

credit

of

the

United

States.

However,

mortgage-related

securities

issued

by

Freddie

Mac

and

Fannie

Mae,

including

Freddie

Mac

and

Fannie

Mae

guaranteed

mortgage

pass-through

certificates,

which

are

solely

the

obligations

of

Freddie

Mac

and

Fannie

Mae,

are

not

backed

by

or

entitled

to

the

full

faith

and

credit

of

the

United

States,

but

are

supported

by

the

right

of

the

issuer

to

borrow

from

the

U.S.

Treasury. 

Non-agency

mortgage-backed

securities

are

securities

issued

by

non-governmental

issuers

and

have

no

direct

or

indirect

government

guarantees

of

payment

and

are

subject

to

various

risks.

Non-agency

mortgage

loans

are

obligations

of

the

borrowers

thereunder

only

and

are

not

typically

insured

or

guaranteed

by

any

other

person

or

entity.

The

ability

of

a

borrower

to

repay

a

loan

is

dependent

upon

the

income

or

assets

of

the

borrower.

A

number

of

factors,

including

a

general

economic

downturn,

acts

of

God,

terrorism,

social

unrest

and

civil

disturbances,

may

impair

a

borrower’s

ability

to

repay

its

loans.

Collateralized

Debt

Obligations:

Collateralized

debt

obligations

(“CDOs”),

including

collateralized

bond

obligations

(“CBOs”)

and

collateralized

loan

obligations

(“CLOs”),

are

types

of

asset-backed

securities.

A

CDO

is

an

entity

that

is

backed

by

a

diversified

pool

of

debt

securities

(CBOs)

or

syndicated

bank

loans

(CLOs).

The

cash

flows

of

the

CDO

can

be

split

into

multiple

segments,

called

“tranches,”

which

will

vary

in

risk

profile

and

yield.

The

riskiest

segment

is

the

subordinated

or

“equity”

tranche.

This

tranche

bears

the

greatest

risk

of

defaults

from

the

underlying

assets

in

the

CDO

and

serves

to

protect

the

other,

more

senior,

tranches

from

default

in

all

but

the

most

severe

circumstances.

Since

it

is

shielded

from

defaults

by

the

more

junior

tranches,

a

“senior”

tranche

will

typically

have

higher

credit

ratings

and

lower

yields

than

their

underlying

securities,

and

often

receive

investment

grade

ratings

from

one

or

more

of

the

nationally

recognized

rating

agencies.

Despite

the

protection

from

the

more

junior

tranches,

senior

tranches

can

experience

substantial

losses

due

to

actual

defaults,

increased

sensitivity

to

future

defaults

and

the

disappearance

of

one

or

more

protecting

tranches

as

a

result

of

changes

in

the

credit

profile

of

the

underlying

pool

of

assets. 

Multiple

Class

Pass-Through

Securities:

Multiple

class

pass-through

securities,

including

collateralized

mortgage

obligations

(“CMOs”)

and

commercial

mortgage-backed

securities,

may

be

issued

by

Ginnie

Mae,

U.S.

Government

agencies

or

instrumentalities

or

by

trusts

formed

by

private

originators

of,

or

investors

in,

mortgage

loans.

In

general,

CMOs

are

debt

obligations

of

a

legal

entity

that

are

collateralized

by

a

pool

of

residential

or

commercial

mortgage

loans

or

Mortgage

Assets.

The

payments

on

these

are

used

to

make

payments

on

the

CMOs

or

multiple

pass-through

securities.

Multiple

class

pass-through

securities

represent

direct

ownership

interests

in

the

Mortgage

Assets.

Classes

of

CMOs

include

interest

only

(“IOs”),

principal

only

(“POs”),

planned

amortization

classes

and

targeted

amortization

classes.

IOs

and

POs

are

stripped

mortgage-backed

securities

representing

interests

in

a

pool

of

mortgages,

the

cash

flow

from

which

has

been

separated

into

interest

and

principal

components.

IOs

receive

the

interest

portion

of

the

cash

flow

while

POs

receive

the

principal

portion.

IOs

and

POs

can

be

extremely

volatile

in

response

to

changes

in

interest

rates.

As

interest

rates

rise

and

fall,

the

value

of

IOs

tends

to

move

in

the

same

direction

as

interest

rates.

POs

perform

best

when

prepayments

on

the

underlying

mortgages

rise

since

this

increases

the

rate

at

which

the

principal

is

returned

and

the

yield

to

maturity

on

the

PO.

When

payments

on

mortgages

underlying

a

PO

are

slower

than

anticipated,

the

life

of

the

PO

is

lengthened

and

the

yield

to

maturity

is

reduced.

If

the

underlying

Mortgage

Assets

experience

greater

than

anticipated

prepayments

of

principal,

a

fund’s

initial

investment

in

the

IOs

may

not

fully

recoup. 

Zero-Coupon

Bonds:

Zero-coupon

bonds

are

normally

issued

at

a

significant

discount

from

face

value

and

do

not

provide

for

periodic

interest

payments.

These

bonds

may

experience

greater

volatility

in

market

value

than

other

debt

obligations

of

similar

maturity

which

provide

for

regular

interest

payments. 

Equity-Linked

Notes:

Equity-linked

notes

seek

to

generate

income

and

provide

exposure

to

the

performance

of

an

underlying

security,

group

of

securities

or

exchange-

traded

funds

(the

“underlying

reference

instrument”).

In

an

equity-linked

note,

a

fund

purchases

a

note

from

a

bank

or

broker-dealer

and

in

return,

the

issuer

provides

for

interest

payments

during

the

term

of

the

note.

At

maturity

or

when

the

security

is

sold,

a

fund

will

either

settle

by

taking

physical

delivery

of

the

underlying

reference

instrument

or

by

receipt

of

a

cash

settlement

amount

equal

to

the

value

of

the

note

at

termination

or

maturity.

The

use

of

equity-linked

notes

involves

the

risk

that

the

value

of

the

note

changes

unfavorably

due

to

movements

in

the

value

of

the

underlying

reference

instrument.

Equity-linked

notes

are

considered

general

unsecured

contractual

obligations

of

the

bank

or

broker-dealer.

A

fund

must

rely

on

the

creditworthiness

of

the

issuer

for

its

investment

returns.

Capital

Securities

and

Trust

Preferred

Securities:

Capital

securities,

including

trust

preferred

securities,

are

typically

issued

by

corporations,

generally

in

the

form

of

interest-bearing

notes

with

preferred

securities

characteristics.

In

the

case

of

trust

preferred

securities,

an

affiliated

business

trust

of

a

corporation

issues

these

securities,

generally

in

the

form

of

beneficial

interests

in

subordinated

debentures

or

similarly

structured

securities.

The

securities

can

be

structured

with

either

a

fixed

or

adjustable

coupon

that

can

have

either

a

perpetual

or

stated

maturity

date.

For

trust

preferred

securities,

the

issuing

bank

or

corporation

pays

interest

to

the

trust,

which

is

then

distributed

to

holders

of

these

securities

as

a

dividend.

Dividends

can

be

deferred

without

creating

an

event

of

default

or

acceleration,

although

maturity

cannot

take

place

unless

all

cumulative

payment

obligations

have

been

met.

The

deferral

of

payments

does

not

affect

the

purchase

or

sale

of

these

securities

in

the

open

market.

These

securities

generally

are

rated

below

that

of

the

issuing

company’s

senior

debt

securities

and

are

freely

callable

at

the

issuer’s

option. 

Preferred

Stocks:

Preferred

stock

has

a

preference

over

common

stock

in

liquidation

(and

generally

in

receiving

dividends

as

well),

but

is

subordinated

to

the

liabilities

of

the

issuer

in

all

respects.

As

a

general

rule,

the

market

value

of

preferred

stock

with

a

fixed

dividend

rate

and

no

conversion

element

varies

inversely

with

interest

rates

and

perceived

credit

risk,

while

the

market

price

of

convertible

preferred

stock

generally

also

reflects

some

element

of

conversion

value.

Because

preferred

stock

is

junior

to

debt

securities

and

other

obligations

of

the

issuer,

deterioration

in

the

credit

quality

of

the

issuer

will

cause

greater

changes

in

the

value

of

a

preferred

stock

than

in

a

more

senior

debt

security

with

similar

stated

yield

characteristics.

Unlike

interest

payments

on

debt

securities,

preferred

stock

dividends

are

payable

only

if

declared

by

the

issuer’s

board

of

directors.

Preferred

stock

also

may

be

subject

to

optional

or

mandatory

redemption

provisions. 

Warrants:

Warrants

entitle

a

fund

to

purchase

a

specified

number

of

shares

of

common

stock

and

are

non-income

producing.

The

purchase

price

and

number

of

shares

are

subject

to

adjustment

under

certain

conditions

until

the

expiration

date

of

the

warrants,

if

any.

If

the

price

of

the

underlying

stock

does

not

rise

above

the

strike

price

before

the

warrant

expires,

the

warrant

generally

expires

without

any

value

and

a

fund

will

lose

any

amount

it

paid

for

the

warrant.

Thus,

investments

in

warrants

may

involve

more

risk

than

investments

in

common

stock.

Warrants

may

trade

in

the

same

markets

as

their

underlying

stock;

however,

the

price

of

the

warrant

does

not

necessarily

move

with

the

price

of

the

underlying

stock. 

Notes

to

Financial

Statements

(continued)

65

Notes

to

Financial

Statements

Floating

Rate

Loan

Interests:

Floating

rate

loan

interests

are

typically

issued

to

companies

(the

“borrower”)

by

banks,

other

financial

institutions,

or

privately

and

publicly

offered

corporations

(the

“lender”).

Floating

rate

loan

interests

are

generally

non-investment

grade,

often

involve

borrowers

whose

financial

condition

is

troubled

or

uncertain

and

companies

that

are

highly

leveraged

or

in

bankruptcy

proceedings.

In

addition,

transactions

in

floating

rate

loan

interests

may

settle

on

a

delayed

basis,

which

may

result

in

proceeds

from

the

sale

not

being

readily

available

for

a

fund

to

make

additional

investments

or

meet

its

redemption

obligations.

Floating

rate

loan

interests

may

include

fully

funded

term

loans

or

revolving

lines

of

credit.

Floating

rate

loan

interests

are

typically

senior

in

the

corporate

capital

structure

of

the

borrower.

Floating

rate

loan

interests

generally

pay

interest

at

rates

that

are

periodically

determined

by

reference

to

a

base

lending

rate

plus

a

premium.

Since

the

rates

reset

only

periodically,

changes

in

prevailing

interest

rates

(and

particularly

sudden

and

significant

changes)

can

be

expected

to

cause

some

fluctuations

in

the

NAV

of

a

fund

to

the

extent

that

it

invests

in

floating

rate

loan

interests.

The

base

lending

rates

are

generally

the

lending

rate

offered

by

one

or

more

European

banks,

such

as

the

Secured

Overnight

Financing

Rate

(“SOFR”),

the

prime

rate

offered

by

one

or

more

U.S.

banks

or

the

certificate

of

deposit

rate.

Floating

rate

loan

interests

may

involve

foreign

borrowers,

and

investments

may

be

denominated

in

foreign

currencies.

These

investments

are

treated

as

investments

in

debt

securities

for

purposes

of

a

fund’s

investment

policies. 

When

a

fund

purchases

a

floating

rate

loan

interest,

it

may

receive

a

facility

fee

and

when

it

sells

a

floating

rate

loan

interest,

it

may

pay

a

facility

fee.

On

an

ongoing

basis,

a

fund

may

receive

a

commitment

fee

based

on

the

undrawn

portion

of

the

underlying

line

of

credit

amount

of

a

floating

rate

loan

interest.

Facility

and

commitment

fees

are

typically

amortized

to

income

over

the

term

of

the

loan

or

term

of

the

commitment,

respectively.

Consent

and

amendment

fees

are

recorded

to

income

as

earned.

Prepayment

penalty

fees,

which

may

be

received

by

a

fund

upon

the

prepayment

of

a

floating

rate

loan

interest

by

a

borrower,

are

recorded

as

realized

gains.

A

fund

may

invest

in

multiple

series

or

tranches

of

a

loan.

A

different

series

or

tranche

may

have

varying

terms

and

carry

different

associated

risks.

Floating

rate

loan

interests

are

usually

freely

callable

at

the

borrower’s

option.

A

fund

may

invest

in

such

loans

in

the

form

of

participations

in

loans

(“Participations”)

or

assignments

(“Assignments”)

of

all

or

a

portion

of

loans

from

third

parties.

Participations

typically

will

result

in

a

fund

having

a

contractual

relationship

only

with

the

lender,

not

with

the

borrower.

A

fund

has

the

right

to

receive

payments

of

principal,

interest

and

any

fees

to

which

it

is

entitled

only

from

the

lender

selling

the

Participation

and

only

upon

receipt

by

the

lender

of

the

payments

from

the

borrower.

In

connection

with

purchasing

Participations,

a

fund

generally

will

have

no

right

to

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement,

nor

any

rights

of

offset

against

the

borrower.

A

fund

may

not

benefit

directly

from

any

collateral

supporting

the

loan

in

which

it

has

purchased

the

Participation.

As

a

result,

a

fund

assumes

the

credit

risk

of

both

the

borrower

and

the

lender

that

is

selling

the

Participation.

A

fund’s

investment

in

loan

participation

interests

involves

the

risk

of

insolvency

of

the

financial

intermediaries

who

are

parties

to

the

transactions.

In

the

event

of

the

insolvency

of

the

lender

selling

the

Participation,

a

fund

may

be

treated

as

a

general

creditor

of

the

lender

and

may

not

benefit

from

any

offset

between

the

lender

and

the

borrower.

Assignments

typically

result

in

a

fund

having

a

direct

contractual

relationship

with

the

borrower,

and

a

fund

may

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement.

Forward

Commitments, When-Issued

and

Delayed

Delivery

Securities

:

The

Fund

may

purchase

securities

on

a

when-issued

basis

and

may

purchase

or

sell

securities

on

a

forward

commitment

basis.

Settlement

of

such

transactions

normally

occurs

within

a

month

or

more

after

the

purchase

or

sale

commitment

is

made.

The

Fund

may

purchase

securities

under

such

conditions

with

the

intention

of

actually

acquiring

them

but

may

enter

into

a

separate

agreement

to

sell

the

securities

before

the

settlement

date.

Since

the

value

of

securities

purchased

may

fluctuate

prior

to

settlement,

the

Fund

may

be

required

to

pay

more

at

settlement

than

the

security

is

worth.

In

addition,

the

fund

is

not

entitled

to

any

of

the

interest

earned

prior

to

settlement.

When

purchasing

a

security

on

a

delayed

delivery

basis,

the

Fund

assumes

the

rights

and

risks

of

ownership

of

the

security,

including

the

risk

of

price

and

yield

fluctuations.

In

the

event

of

default

by

the

counterparty,

the

Fund’s

maximum

amount

of

loss

is

the

unrealized

appreciation

of

unsettled

when-issued

transactions.

These

types

of

securities

may

be

considered

unfunded

and

may

obligate

the

Fund

to

make

future

cash

payments.

An

unfunded

commitment

is

marked-to-market

and

any

unrealized

appreciation

(depreciation)

is

separately

presented

in

the

Statement

of

Assets

and

Liabilities

and

Statement

of

Operations.

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.

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.

Any

non-cash

collateral

received

cannot

be

sold,

re-invested

or

pledged

by

the

Fund,

except

in

the

event

of

borrower

default.

The

securities

on

loan,

if

any,

are

disclosed

in

the

Fund’s

 Schedule

of

Investments.

The

market

value

of

any

securities

on

loan

and

the

value

of

related

collateral,

if

any,

are

shown

separately

in

the

 Statement

of

Assets

and

Liabilities

as

a

component

of

investments

at

value

–

unaffiliated

and

collateral

on

securities

loaned,

respectively.

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.

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.

Notes

to

Financial

Statements

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

66

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.

Options:

The

Fund

may purchase

and

write

call

and

put

options

to

increase

or

decrease

its

exposure

to

the

risks

of

underlying

instruments,

including

equity

risk,

interest

rate

risk

and/or

commodity

price

risk

and/or,

in

the

case

of

options

written,

to

generate

gains

from

options

premiums.

A

call

option

gives

the

purchaser

(holder)

of

the

option

the

right

(but

not

the

obligation)

to

buy,

and

obligates

the

seller

(writer)

to

sell

(when

the

option

is

exercised)

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

A

put

option

gives

the

holder

the

right

to

sell

and

obligates

the

writer

to

buy

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

Premiums

paid

on

options

purchased

and

premiums

received

on

options

written,

as

well

as

the

daily

fluctuation

in

market

value,

are

included

in

investments

at

value

–

unaffiliated

and

options

written

at

value,

respectively,

in

the

Statement

of

Assets

and

Liabilities.

When

an

instrument

is

purchased

or

sold

through

the

exercise

of

an

option,

the

premium

is

offset

against

the

cost

or

proceeds

of

the

underlying

instrument.

When

an

option

expires,

a

realized

gain

or

loss

is

recorded

in

the

Statement

of

Operations

to

the

extent

of

the

premiums

received

or

paid.

When

an

option

is

closed

or

sold,

a

gain

or

loss

is

recorded

in

the

Statement

of

Operations

to

the

extent

the

cost

of

the

closing

transaction

exceeds

the

premiums

received

or

paid.

When

the

Fund

writes

a

call

option,

such

option

is

typically

“covered,”

meaning

that

it

holds

the

underlying

instrument

subject

to

being

called

by

the

option

counterparty.

When

the

Fund

writes

a

put

option,

cash

is

segregated in

an

amount

sufficient

to

cover

the

obligation.

These

amounts,

which

are

considered

restricted,

are

included

in

cash

pledged

as

collateral

for

options

written

in

the

Statement

of

Assets

and

Liabilities.

In

purchasing

and

writing

options,

the

Fund

bears

the

risk

of

an

unfavorable

change

in

the

value

of

the

underlying

instrument

or

the

risk

that

it

may

not

be

able

to

enter

into

a

closing

transaction

due

to

an

illiquid

market.

Exercise

of

a

written

option

could

result

in

the

Fund

purchasing

or

selling

a

security

when

it

otherwise

would

not,

or

at

a

price

different

from

the

current

market

value.

Swaps:

Swap

contracts

are

entered

into

to

manage

exposure

to

issuers,

markets

and

securities.

Such

contracts

are

agreements

between

the

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

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.

Notes

to

Financial

Statements

(continued)

67

Notes

to

Financial

Statements

Swap

transactions

involve,

to

varying

degrees,

elements

of

interest

rate,

credit

and

market

risks

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, the

Fund

may

enter

into

an

International

Swaps

and

Derivatives

Association,

Inc.

Master

Agreement

(“ISDA

Master

Agreement”)

or

similar

agreement

with

its

derivative

contract

counterparties.

An

ISDA

Master

Agreement

is

a

bilateral

agreement

between the

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, the

Fund

may,

under

certain

circumstances,

offset

with

the

counterparty

certain

derivative

financial

instruments’

payables

and/or

receivables

with

collateral

held

and/or

posted

and

create

one

single

net

payment.

The

provisions

of

the

ISDA

Master

Agreement

typically

permit

a

single

net

payment

in

the

event

of

default

including

the

bankruptcy

or

insolvency

of

the

counterparty.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

the

right

of

offset

in

bankruptcy,

insolvency

or

other

events.

Collateral

Requirements:

For

derivatives

traded

under

an

ISDA

Master

Agreement,

the

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

any

collateral

currently

pledged

by

the

Fund(s)

and

the

counterparty.

Cash

collateral

that

has

been

pledged

to

cover

obligations

of

the

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

Trust,

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

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:

The

Manager

entered

into

separate

sub-advisory

agreements

with

each

of

BlackRock

International

Limited

(“BIL”),

and

BlackRock

(Singapore)

Limited

("BSL"),

(collectively,

the

“Sub-Advisers”),

each

an

affiliate

of

the

Manager.

The

Manager

pays

BIL

and

BSL

for

services

they

provide

for

that

portion

of

the

Fund

for

which

BIL

and

BSL

,

as

applicable,

acts

as

sub-adviser,

a

monthly

fee

that

is

equal

to

a

percentage

of

the

investment

advisory

fees

paid

by

the

Fund

to

the

Manager.

Service

and

Distribution

Fees:

 The

Trust

,

on behalf

of

the

Fund,

entered

into

a

Distribution

Agreement

and

a Distribution and

Service

Plan

with

BlackRock

Investments,

LLC

(“BRIL”),

an

affiliate

of

the

Manager.

Pursuant

to

the

Distribution

and

Service

Plan

and

in

accordance

with

Rule

12b-1

under

the

1940

Act,

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:

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.

Average

Daily

Net

Assets

Investment

Advisory

Fees

First

$1

billion

.........................................................................................................

0.35%

$1

billion

-

$2

billion

.....................................................................................................

0.34

$2

billion

-

$3

billion

.....................................................................................................

0.33

Greater

than

$3

billion

...................................................................................................

0.32

Share

Class

Service

Fees

Distribution

Fees

Investor

A

.................................................................................................

0.25‌

%

—‌

%

Investor

C

.................................................................................................

0.25‌

0.75‌ 

Notes

to

Financial

Statements

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

68

For

the year

ended

December

31,

2023,

the

following

table

shows

the

class

specific

service

and

distribution

fees

borne

directly

by

each

share

class

of

the

Fund:

Administration:

The

Trust,

on

behalf

of

the

Fund,

entered

into

an

Administration

Agreement

with

the

Manager,

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

to

provide

administrative

services.

For

these

services,

the

Manager

receives

an

administration

fee

computed

daily

and

payable

monthly,

based

on

a

percentage

of

the

average

daily

net

assets

of

the

Fund.

The

administration

fee,

which

is

shown

as

administration

in

the

Statement

of

Operations,

is

paid

at

the

annual

rates

below.

In

addition,

the

Manager

charges

each

of

the

share

classes

an

administration

fee,

which

is

shown

as

administration —

class

specific

in

the

Statement

of

Operations,

at

an

annual

rate

of

0.02% of

the

average

daily

net

assets

of

each

respective

class.

For

the

year

ended

December

31,

2023, the

following

table

shows

the

class

specific

administration

fees

borne

directly

by

each

share

class

of

the

Fund:

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

year ended December

31,

2023,

the

Fund

paid

the

following

amounts

to

affiliates

of

BlackRock

in

return

for

these

services,

which

are

included

in

transfer

agent

—

class

specific

in

the

Statement

of

Operations:

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 year

ended

December

31,

2023,

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:

For

the

year ended

December

31,

2023,

the

following

table

shows

the

class

specific

transfer

agent

fees

borne

directly

by

each

share

class

of

the

Fund:

Other

Fees:

For

the

year

 ended 

December

31,

2023

,

affiliates

earned

underwriting

discounts,

direct

commissions

and

dealer

concessions

on

sales

of

the Fund's

Investor

A

Shares for

a

total

of

$6,247

.

For

the year

ended

December

31,

2023,

affiliates

received

CDSCs

as

follows:

Expense

Limitations,

Waivers

and

Reimbursements:

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

June

30,

2024.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

trustees

who

are

not

“interested

persons”

of

the

Trust,

as

defined

in

the

1940

Act

(“Independent

Trustees”),

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

year

ended

December

31,

2023,

the

amount

waived

was

$16,72

6

.

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

June

30,

2024.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

the

Fund.

This

amount

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statement

of

Operations.

For

the

year

ended

December

31,

2023,

the

Manager

waived

$382,691

in

investment

advisory

fees

pursuant

to

this

arrangement.

Share

Class

Service

and

Distribution

Fees

Investor

A

........................................................................................................

$

781,456‌

Investor

C

........................................................................................................

222,028‌

$

1,003,484‌

Average

Daily

Net

Assets

Administration

Fees

First

$500

million

0.0425

%

$500

million

-

$1

billion

0.0400

$1

billion

-

$2

billion

0.0375

$2

billion

-

$4

billion

0.0350

$4

billion

-

$13

billion

0.0325

Greater

than

$13

billion

0.0300

Institutional

Investor

A

Investor

C

Class

K

Total

Administration

fees

-

class

specific

..........................................

$

67,750‌

$

62,516‌

$

4,441‌

$

15,132‌

$

149,839‌

Institutional

.......................................................................................................

$

1,311‌

Institutional

Investor

A

Investor

C

Class

K

Total

Reimbursed

Amount

....................................................

$

610‌

$

2,362‌

$

457‌

$

154‌

$

3,583‌

Institutional

Investor

A

Investor

C

Class

K

Total

Transfer

agent

fees

-

class

specific

..........................................

$

301,611‌

$

133,565‌

$

14,093‌

$

4,374‌

$

453,643‌

Investor

A

$

13,407‌

Investor

C

4,068‌

Notes

to

Financial

Statements

(continued)

69

Notes

to

Financial

Statements

The

Manager

contractually

agreed

to

waive

and/or

reimburse

fees

or

expenses

in

order

to

limit

Other

Expenses

(“expense

limitation”)

through

June

30,

2024.

Other

expenses

include

accounting,

transfer

agency,

custody,

professional

and

registration

fees

and

exclude

dividend

expense,

interest

expense,

and

certain

other

fund

expenses

that

constitute

extraordinary

expenses

not

incurred

in

the

ordinary

course

of

the

Fund’s

business.

The

expense

limitations

as

a

percentage

of

average

daily

net

assets

are

as

follows:

The

Manager

has

agreed

not

to

reduce

or

discontinue

the

contractual

expense

limitations

through

June

30,

2024,

unless

approved

by

the

Board,

including

a

majority

of

the Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of the

Fund.

For

the

year ended

December

31,

2023,

the

Manager

waived

and/or

reimbursed

investment

advisory

fees

of

$643,059

pursuant

to

this

arrangement,

which

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statement

of

Operations.

The

Fund

also

had

a

waiver

of

administration

fees,

which

are

included

in

Administration

fees

waived

in

the

Statement

of

Operations.

For

the

year

ended

December

31,

2023,

the

amount

were

$312,177.

In

addition,

these

amounts

waived

and/or

reimbursed

by

the

Manager

are

included

in

administration

fees

waived

by

the

Manager

—

class

specific

and

transfer

agent

fees

waived

and/or

reimbursed

by

Manager

—

class

specific,

respectively,

in

the

Statement

of

Operations.

For

the

year ended

December

31,

2023,

class

specific

expense

waivers

and/or

reimbursements

were

as

follows:

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

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,

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

impose

a

discretionary

liquidity

fee

of

up

to

2%

of

the

value

withdrawn,

if

such

fee

is

determined

to

be

in

the

best

interests

of

the

Money

Market

Series.

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

82%

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

85%

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 year

ended December

31,

2023,

the

Fund

paid

BIM $9,326

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 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. 

Institutional

.............................................................................................................

0.09‌%

Investor

A

..............................................................................................................

0.09‌

Investor

C

..............................................................................................................

0.09‌

Class

K

...............................................................................................................

0.04‌

Share

Class

Administration

Fees

Waived

by

the

Manager

-

Class

Specific

Transfer

Agent

Fees

Waived

and/or

Reimbursed

by

the

Manager

-

Class

Specific

Institutional

....................................................................................

$

67,750‌

$

132,175‌

Investor

A

.....................................................................................

39,763‌

—‌

Investor

C

.....................................................................................

4,441‌

2,990‌

Class

K

......................................................................................

15,132‌

4,374‌

$

127,086‌

$

139,539‌

Notes

to

Financial

Statements

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

70

During the

year

ended

December

31,

2023,

the

Fund

did

not

participate

in

the

Interfund

Lending

Program.

Trustees

and

Officers: 

Certain

trustees

and/or

officers

of

the Trust are directors and/or

officers

of BlackRock

or

its

affiliates.

The

Fund

reimburses

the

Manager

for

a

portion

of

the

compensation

paid

to

the 

Trust’s

Chief

Compliance

Officer,

which

is

included

in

Trustees and

Officer

in

the

Statement

of

Operations. 

Other

Transactions:

The

Fund

may

purchase

securities

from,

or

sell

securities

to,

an

affiliated

fund

provided

the

affiliation

is

due

solely

to

having

a

common

investment

adviser,

common

officers,

or

common

trustees.

For

the

year ended

December

31,

2023,

the

purchase

and

sale

transactions

and

any

net

realized

gains

(losses)

with

an

affiliated

fund

in

compliance

with

Rule

17a-7

under

the

1940

Act

were

as

follows:

7.

PURCHASES

AND

SALES 

For

the

year ended

December

31,

2023,

purchases

and

sales

of

investments, excluding

short-term

securities

and

equity-linked

notes,

were

as

follows:

For

the

year ended

December

31,

2023,

purchases

and

sales

related

to

equity-linked

notes

were

$241,072,888 and

$246,361,710.

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

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

December

31,

2023,

inclusive

of

the

open

tax

return

years,

and

does

not

believe

that

there

are

any

uncertain

tax

positions

that

require

recognition

of

a

tax

liability

in

the

Fund’s

financial

statements.

The

tax

character

of

distributions

paid

was

as

follows: 

As

of

December

31,

2023,

the

tax

components

of

accumulated earnings

(loss) were

as

follows:  

(a)

Amounts

available

to

offset

future

realized

capital

gains.

(b)

The

difference

between

book-basis

and

tax-basis

net

unrealized

gains

(losses)

was

attributable

primarily

to

the

tax

deferral

of

losses

on

wash

sales,

amortization

and

accretion

methods

of

premiums

and

discounts

on

fixed

income

securities,

the

realization

for

tax

purposes

of

unrealized

gains

(losses)

on

certain

futures

and

foreign

currency

exchange

contracts,

the

accrual

of

income

on

securities

in

default,

the

realization

for

tax

purposes

of

unrealized

gains

on

investments

in

passive

foreign

investment

companies,

the

timing

and

recognition

of

partnership

income,

the

accounting

for

swap

agreements

and

the

classification

of

investments.

As

of

December

31,

2023, gross

unrealized

appreciation

and

depreciation

based

on

cost

of

investments

(including

short

positions

and

derivatives,

if

any)

for

U.S.

federal

income

tax

purposes

were

as

follows: 

9.

BANK

BORROWINGS 

The

Trust,

on

behalf

of

the

Fund,

along

with

certain

other

funds

managed

by

the

Manager

and

its

affiliates

(“Participating

Funds”), is

party

to

a

364-day,

$2.50

billion

credit

agreement

with

a

group

of

lenders.

Under

this

agreement,

the

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

Purchases

...............................................................................................................

$

—‌

Sales

...................................................................................................................

207,556‌

Net

Realized

Loss

..........................................................................................................

(1,670‌)

U.S.

Government

Securities

Other

Securities

Fund

Name

Purchases

Sales

Purchases

Sales

BlackRock

Managed

Income

Fund

..........................................

$

133,408‌

$

132,922‌

$

444,421,345‌

$

497,033,542‌

Fund

Name

Year

Ended

12/31/23

Year

Ended

12/31/22

BlackRock

Managed

Income

Fund

Ordinary

income

...........................................................................................

$

37,202,948‌

$

36,681,404‌

Long-term

capital

gains

......................................................................................

—‌

1,371,008‌

$

37,202,948‌

$

38,052,412‌

Fund

Name

Undistributed

Ordinary

Income

Non-Expiring

Capital

Loss

Carryforwards

(a)

Net

Unrealized

Gains

(Losses)

(b)

Total

BlackRock

Managed

Income

Fund

...........................................

$

928,244‌

$

(82,034,480‌)

$

(90,131‌)

$

(81,196,367‌)

Fund

Name

Tax

Cost

Gross

Unrealized

Appreciation

Gross

Unrealized

Depreciation

Net

Unrealized

Appreciation

(Depreciation)

BlackRock

Managed

Income

Fund

......................................

$

731,723,539‌

$

23,832,105‌

$

(23,937,464‌)

$

(105,359‌)

Notes

to

Financial

Statements

(continued)

71

Notes

to

Financial

Statements

and

other

limitations

as

specified

in

the

agreement.

The

credit

agreement

has

the

following

terms:

a

fee

of

0.10%

per

annum

on

unused

commitment

amounts

and

interest

at

a

rate

equal

to

the

higher

of

(a)

Overnight

Bank

Funding

Rate

(“OBFR”)

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.80%

per

annum,

(b)

the

Fed

Funds

rate

(but,

in

any

event,

not

less

than

0.00%)

in

effect

from

time

to

time

plus

0.80%

per

annum

on

amounts

borrowed

or

(c)

the

sum

of

(x)

Daily

Simple

SOFR

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.10%

and

(y)

0.80%

per

annum. The

agreement

expires

in

April

2024

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

year ended

December

31,

2023,

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

discretionary

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.

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.

For

OTC

options

purchased,

the

Fund

bears

the

risk

of

loss

in

the

amount

of

the

premiums

paid

plus

the

positive

change

in

market

values

net

of

any

collateral

held

by

the

Fund

should

the

counterparty

fail

to

perform

under

the

contracts.

Options

written

by

the

Fund

do

not

typically

give

rise

to

counterparty

credit

risk,

as

options

written

generally

obligate

the

Fund,

and

not

the

counterparty,

to

perform.

The

Fund

may

be

exposed

to

counterparty

credit

risk

with

respect

to

options

written

to

the

extent

the

Fund

deposits

collateral

with

its

counterparty

to

a

written

option. 

With

exchange-traded

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

(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. 

Geographic/Asset

Class

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.

Notes

to

Financial

Statements

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

72

The

Fund

invests

a

significant

portion

of

its

assets

in

high

yield

securities.

High

yield

securities

that

are

rated

below

investment-grade

(commonly

referred

to

as

“junk

bonds”)

or

are

unrated

may

be

deemed

speculative,

involve

greater

levels

of

risk

than

higher-rated

securities

of

similar

maturity

and

are

more

likely

to

default.

High

yield

securities

may

be

issued

by

less

creditworthy

issuers,

and

issuers

of

high

yield

securities

may

be

unable

to

meet

their

interest

or

principal

payment

obligations.

High

yield

securities

are

subject

to

extreme

price

fluctuations,

may

be

less

liquid

than

higher

rated

fixed-income

securities,

even

under

normal

economic

conditions,

and

frequently

have

redemption

features. 

The

Fund

invests

a

significant

portion

of

its

assets

in fixed-income securities and/or uses

derivatives tied

to

the

fixed-income

markets.

Changes

in

market

interest

rates

or

economic

conditions

may affect

the

value

and/or

liquidity

of

such investments.

Interest

rate

risk

is

the

risk

that

prices

of

bonds

and

other

fixed-income

securities

will

decrease

as

interest

rates

rise

and

increase

as

interest

rates

fall.

The

Fund(s) may

be

subject

to

a

greater

risk

of

rising

interest

rates

due

to

the period

of

historically

low

interest

rates

that

ended

in

March

2022. The

Federal

Reserve

has

recently been

raising the

federal

funds

rate

as

part

of

its

efforts

to

address

inflation.

There

is

a

risk

that

interest

rates

will

continue

to

rise,

which

will

likely

drive

down

the

prices

of

bonds

and

other

fixed-income

securities,

and

could

negatively

impact

the

Fund’s

performance.

The

Fund

invests

a

significant

portion

of

its

assets

in

securities

of

issuers

located

in

the

United

States.

A

decrease

in

imports

or

exports,

changes

in

trade

regulations,

inflation

and/or

an

economic

recession

in

the

United

States

may

have

a

material

adverse

effect

on

the

U.S.

economy

and

the

securities

listed

on

U.S.

exchanges.

Proposed

and

adopted

policy

and

legislative

changes

in

the

United

States

may

also

have

a

significant

effect

on

U.S.

markets

generally,

as

well

as

on

the

value

of

certain

securities.

Governmental

agencies

project

that

the

United

States

will

continue

to

maintain

elevated

public

debt

levels

for

the

foreseeable

future

which

may

constrain

future

economic

growth.

Circumstances

could

arise

that

could

prevent

the

timely

payment

of

interest

or

principal

on

U.S.

government

debt,

such

as

reaching

the

legislative

“debt

ceiling.”

Such

non-payment

would

result

in

substantial

negative

consequences

for

the

U.S.

economy

and

the

global

financial

system.

If

U.S.

relations

with

certain

countries

deteriorate,

it

could

adversely

affect

issuers

that

rely

on

the

United

States

for

trade.

The

United

States

has

also

experienced

increased

internal

unrest

and

discord.

If

these

trends

were

to

continue,

they

may

have

an

adverse

impact

on

the

U.S.

economy

and

the

issuers

in

which

the

Fund

invests.

Significant

Shareholder

Redemption

Risk:

Certain

shareholders

may

own

or

manage

a

substantial

amount

of

fund

shares

and/or

hold

their

fund

investments

for

a

limited

period

of

time.

Large

redemptions

of

fund

shares

by

these

shareholders

may

force

a

fund

to

sell

portfolio

securities,

which

may

negatively

impact

the

fund’s

NAV,

increase

the

fund’s

brokerage

costs,

and/or

accelerate

the

realization

of

taxable

income/gains

and

cause

the

fund

to

make

additional

taxable

distributions

to

shareholders.

LIBOR

Transition

Risk:

The

Fund

may

be

exposed

to

financial

instruments

that

recently

transitioned

from,

or

continue

to

be

tied

to,

the

London

Interbank

Offered

Rate

(“LIBOR”)

to

determine

payment

obligations,

financing

terms,

hedging

strategies

or

investment

value.

The

United

Kingdom’s

Financial

Conduct

Authority,

which

regulates

LIBOR,

has

ceased

publishing

all

LIBOR

settings,

but

some

USD

LIBOR

settings

will

continue

to

be

published

under

a

synthetic

methodology

until

September

30,

2024

for

certain

legacy

contracts.

SOFR

has

been

used

increasingly

on

a

voluntary

basis

in

new

instruments

and

transactions.

Under

U.S.

regulations

that

implement

a

statutory

fallback

mechanism

to

replace

LIBOR,

benchmark

rates

based

on

SOFR

have

replaced

LIBOR

in

certain

financial

contracts.

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:

Year

Ended

12/31/23

Year

Ended

12/31/22

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

BlackRock

Managed

Income

Fund

Institutional

Shares

sold

.............................................

13,818,510‌

$

126,148,136‌

30,758,600‌

$

294,798,975‌

Shares

issued

in

reinvestment

of

distributions

........................

1,869,945‌

17,048,030‌

2,012,421‌

18,660,414‌

Shares

redeemed

.........................................

(17,228,745‌)

(156,725,602‌)

(38,093,781‌)

(350,679,791‌)

(1,540,290‌)

$

(13,529,436‌)

(5,322,760‌)

$

(37,220,402‌)

Investor

A

Shares

sold

and

automatic

conversion

of

shares

.......................

6,240,758‌

$

57,015,347‌

10,785,262‌

$

101,705,766‌

Shares

issued

in

reinvestment

of

distributions

........................

1,653,646‌

15,078,108‌

1,540,910‌

14,249,573‌

Shares

redeemed

.........................................

(11,660,675‌)

(106,207,705‌)

(15,192,961‌)

(142,413,853‌)

(3,766,271‌)

$

(34,114,250‌)

(2,866,789‌)

$

(26,458,514‌)

Investor

C

Shares

sold

.............................................

253,178‌

$

2,319,275‌

505,249‌

$

4,736,983‌

Shares

issued

in

reinvestment

of

distributions

........................

98,617‌

899,781‌

90,662‌

836,724‌

Shares

redeemed

and

automatic

conversion

of

shares

..................

(658,525‌)

(6,029,834‌)

(863,782‌)

(8,095,480‌)

(306,730‌)

$

(2,810,778‌)

(267,871‌)

$

(2,521,773‌)

Class

K

Shares

sold

.............................................

1,131,375‌

$

10,340,153‌

2,292,432‌

$

22,132,854‌

Shares

issued

in

reinvestment

of

distributions

........................

386,068‌

3,530,369‌

396,922‌

3,681,561‌

Shares

redeemed

.........................................

(2,620,340‌)

(23,929,288‌)

(3,721,675‌)

(34,842,360‌)

(1,102,897‌)

$

(10,058,766‌)

(1,032,321‌)

$

(9,027,945‌)

(6,716,188‌)

$

(60,513,230‌)

(9,489,741‌)

$

(75,228,634‌)

Notes

to

Financial

Statements

(continued)

73

Notes

to

Financial

Statements

12.

Foreign

Withholdings

Tax

Claims

The

Internal

Revenue

Service

(“IRS”)

has

issued

guidance

to

address

U.S.

income

tax

liabilities

attributable

to

fund

shareholders

resulting

from

the

recovery

of

foreign

taxes

withheld

in

prior

calendar

years.

These

withheld

foreign

taxes

were

passed

through

to

shareholders

in

the

form

of

foreign

tax

credits

in

the

year

the

taxes

were

withheld.

Assuming

there

are

sufficient

foreign

taxes

paid

which

the

Fund

is

able

to

pass

through

to

shareholders

as

a

foreign

tax

credit

in

the

current

year,

the

Fund

will

be

able

to

offset

the

prior

years'

withholding

taxes

recovered

against

the

foreign

taxes

paid

in

the

current

year.

Accordingly,

no

federal

income

tax

liability

is

recorded

by

the

Fund.

13.

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.

Report

of

Independent

Registered

Public

Accounting

Firm

2023

BlackRock

Annual

Report

to

Shareholders

74

To

the

Shareholders

of

BlackRock

Managed

Income

Fund

and

the

Board

of

Trustees

of

BlackRock

Funds

II:

Opinion

on

the

Financial

Statements

and

Financial

Highlights

We

have

audited

the

accompanying

statement

of

assets

and

liabilities

of

BlackRock

Managed

Income

Fund

of

BlackRock

Funds

II

(the

“Fund”),

including

the

schedule

of

investments,

as

of

December

31,

2023,

the

related

statement

of

operations

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

and

the

related

notes.

In

our

opinion,

the

financial

statements

and

financial

highlights

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2023,

and

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

and

financial

highlights

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

and

financial

highlights

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

and

financial

highlights

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Fund

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

its

internal

control

over

financial

reporting.

As

part

of

our

audits

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Fund’s

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements

and

financial

highlights,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements

and

financial

highlights.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements

and

financial

highlights.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2023,

by

correspondence

with

custodians

or

counterparties;

when

replies

were

not

received,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

Deloitte

&

Touche

LLP

Boston,

Massachusetts

February

26,

2024

We

have

served

as

the

auditor

of

one

or

more

BlackRock

investment

companies

since

1992.

Important

Tax

Information

(Unaudited)

75

Important

Tax

Information

The

following

amount,

or maximum

amount

allowable

by

law, is

hereby

designated

as

qualified

dividend

income

for

individuals

for

the

fiscal

year

ended

December

31,

2023:

The

following

amount,

or

maximum

amount

allowable

by

law, is

hereby

designated

as

qualified

business

income

for

individuals

for

the

fiscal

year

ended

December

31,

2023:

The

Fund

hereby

designates

the

following

amount,

or

maximum

amount

allowable

by

law,

of

distributions

from

direct

federal

obligation

interest

for

the

fiscal

year

ended

December

31,

2023:

The

law

varies

in

each

state

as

to

whether

and

what

percent

of

ordinary

income

dividends

attributable

to

federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

check

with

their

tax

advisers

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

tax.

The

following

percentage,

or

maximum

percentage

allowable

by

law,

of

ordinary

income

distributions

paid

during

the

fiscal

year

ended

December

31,

2023

qualified

for

the

dividends-received

deduction

for

corporate

shareholders:

The

Fund

hereby

designates

the

following

amount,

or

maximum

amount

allowable

by

law,

as

interest

income

eligible

to

be

treated

as

a

Section

163(j)

interest

dividend

for

the

fiscal

year

ended

December

31,

2023:

The

Fund

hereby

designates

the

following

amount,

or

maximum

amount

allowable

by

law,

as

interest-related

dividends

eligible

for

exemption

from

U.S.

withholding

tax

for

nonresident

aliens

and

foreign

corporations

for

the

fiscal

year

ended

December

31,

2023:

Fund

Name

Qualified

Dividend

Income

BlackRock

Managed

Income

Fund

.......................................................................................

$

3,885,012‌

Fund

Name

Qualified

Business

Income

BlackRock

Managed

Income

Fund

.......................................................................................

$

130,019‌

Fund

Name

Federal

Obligation

Interest

BlackRock

Managed

Income

Fund

.......................................................................................

$

686,269‌

Fund

Name

Dividends-Received

Deduction

BlackRock

Managed

Income

Fund

.........................................................................................

5.16‌

%

Fund

Name

Interest

Dividends

BlackRock

Managed

Income

Fund

.......................................................................................

$

29,032,283‌

Fund

Name

Interest-Related

Dividends

BlackRock

Managed

Income

Fund

.......................................................................................

$

21,414,701‌

Statement

Regarding

Liquidity

Risk

Management

Program

2023

BlackRock

Annual

Report

to

Shareholders

76

In

compliance

with

Rule

22e-4

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“Liquidity

Rule”),

BlackRock

Funds

II

(the

“Trust”)

has

adopted

and

implemented

a

liquidity

risk

management

program

(the

“Program”)

for

BlackRock

Managed

Income

Fund

(the

“Fund”),

a

series

of

the

Trust,

which

is

reasonably

designed

to

assess

and

manage

the

Fund’s

liquidity

risk.

The

Board

of

Trustees

(the

“Board”)

of

the

Trust,

on

behalf

of

the

Fund,

met

on

November

16-17,

2023

(the

“Meeting”)

to

review

the

Program.

The

Board

previously

appointed

BlackRock

Advisors,

LLC

or

BlackRock

Fund

Advisors

(“BlackRock”),

the

an

investment

adviser

to

certain

BlackRock

funds,

as

the

program

administrator

for

the

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

management

of

the

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,

2022

through

September

30,

2023

(the

“Program

Reporting

Period”).

The

Report

described

the

Program’s

liquidity

classification

methodology

for

categorizing

the

Fund’s

investments

(including

derivative

transactions)

into

one

of

four

liquidity

buckets.

It

also

referenced

the

methodology

used

by

BlackRock

to

establish

the

Fund’s

HLIM

and

noted

that

the

Committee

reviews

and

ratifies

the

HLIM

assigned

to

the

Fund

no

less

frequently

than

annually.

The

Report

also

discussed

notable

events

affecting

liquidity

over

the

Program

Reporting

Period,

including

the

imposition

of

capital

controls

in

certain

countries.

The

Report

noted

that

the

Program

complied

with

the

key

factors

for

consideration

under

the

Liquidity

Rule

for

assessing,

managing

and

periodically

reviewing

the

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

the

Fund’s

strategy

is

appropriate

for

an

open-end

fund

structure

with

a

focus

on

funds

with

more

significant

and

consistent

holdings

of

less

liquid

and

illiquid

assets.

The

Committee

also

factored

a

fund’s

concentration

in

an

issuer

into

the

liquidity

classification

methodology

by

taking

issuer

position

sizes

into

account.

Where

a

fund

participated

in

borrowings

for

investment

purposes

(such

as

tender

option

bonds

or

reverse

repurchase

agreements),

such

borrowings

were

factored

into

the

Program’s

calculation

of

a

fund’s

liquidity

bucketing.

A

fund’s

derivative

exposure

was

also

considered

in

such

calculation.

b)

Short-term

and

long-term

cash

flow

projections

during

both

normal

and

reasonably

foreseeable

stressed

conditions

.

During

the

Program

Reporting

Period,

the

Committee

reviewed

historical

redemption

activity

and

used

this

information

as

a

component

to

establish

the

Fund’s

reasonably

anticipated

trading

size

utilized

for

liquidity

classifications.

The

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

Fund,

the

financial

health

of

the

institution

providing

the

facility

and

the

fact

that

the

credit

facility

is

shared

among

multiple

funds

(including

that

a

portion

of

the

aggregate

commitment

amount

is

specifically

designated

for

BlackRock

Floating

Rate

Income

Portfolio,

a

series

of

BlackRock

Funds

V,

and

BlackRock

Floating

Rate

Loan

ETF,

a

series

of

BlackRock

ETF

Trust

II).

The

Committee

also

considered

other

types

of

borrowing

available

to

the

funds,

such

as

the

ability

to

use

reverse

repurchase

agreements

and

interfund

lending,

as

applicable.

There

were

no

material

changes

to

the

Program

during

the

Program

Reporting

Period

other

than

the

enhancement

of

certain

model

components

in

the

Program’s

classification

methodology.

The

Report

provided

to

the

Board

stated

that

the

Committee

concluded

that

based

on

the

operation

of

the

functions,

as

described

in

the

Report,

the

Program

is

operating

as

intended

and

is

effective

in

implementing

the

requirements

of

the

Liquidity

Rule.

Trustee

and

Officer

Information

77

Trustee

and

Officer

Information

Independent

Trustees

(a)

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

5

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

5

Years

Mark

Stalnecker

1951

Chair

of

the

Board

and

Trustee

(Since

2019)

Chief

Investment

Officer,

University

of

Delaware

from

1999

to

2013;

Trustee

and

Chair

of

the

Finance

and

Investment

Committees,

Winterthur

Museum

and

Country

Estate

from

2005

to

2016;

Member

of

the

Investment

Committee,

Delaware

Public

Employees’

Retirement

System

since

2002;

Member

of

the

Investment

Committee,

Christiana

Care

Health

System

from

2009

to

2017;

Member

of

the

Investment

Committee,

Delaware

Community

Foundation

from

2013

to

2014;

Director

and

Chair

of

the

Audit

Committee,

SEI

Private

Trust

Co.

from

2001

to

2014.

28

RICs

consisting

of

166

Portfolios

None

Susan

J.

Carter

1956

Trustee

(Since

2019)

Trustee,

Financial

Accounting

Foundation

from

2017

to

2021;

Advisory

Board

Member,

Center

for

Private

Equity

and

Entrepreneurship

at

Tuck

School

of

Business

from

1997

to

2021;

Director,

Pacific

Pension

Institute

from

2014

to

2018;

Senior

Advisor,

Commonfund

Capital,

Inc.

(“CCI”)

(investment

adviser)

in

2015;

Chief

Executive

Officer,

CCI

from

2013

to

2014;

President

&

Chief

Executive

Officer,

CCI

from

1997

to

2013;

Advisory

Board

Member,

Girls

Who

Invest

from

2015

to

2018

and

Board

Member

thereof

from

2018

to

2022;

Advisory

Board

Member,

Bridges

Fund

Management

from

2016

to

2018;

Practitioner

Advisory

Board

Member,

Private

Capital

Research

Institute

("PCRI")

since

2017;

Lecturer

in

the

Practice

of

Management,

Yale

School

of

Management

since

2019;

Advisor

to

Finance

Committee,

Altman

Foundation

since

2020;

Investment

Committee

Member,

Tostan

since

2021;

Member

of

the

President's

Counsel,

Commonfund

since

2023.

28

RICs

consisting

of

166

Portfolios

None

Collette

Chilton

1958

Trustee

(Since

2019)

Senior

advisor,

Insignia

since

2024;

Chief

Investment

Officer,

Williams

College

from

2006

to

2023;

Chief

Investment

Officer,

Lucent

Asset

Management

Corporation

from

1998

to

2006;

Director,

Boys

and

Girls

Club

of

Boston

since

2017;

Director,

B1

Capital

since

2018;

Director,

David

and

Lucile

Packard

Foundation

since

2020.

28

RICs

consisting

of

166

Portfolios

None

Neil

A.

Cotty

1954

Trustee

(Since

2019)

Bank

of

America

Corporation

from

1996

to

2015,

serving

in

various

senior

finance

leadership

roles,

including

Chief

Accounting

Officer

from

2009

to

2015,

Chief

Financial

Officer

of

Global

Banking,

Markets

and

Wealth

Management

from

2008

to

2009,

Chief

Accounting

Officer

from

2004

to

2008,

Chief

Financial

Officer

of

Consumer

Bank

from

2003

to

2004,

Chief

Financial

Officer

of

Global

Corporate

Investment

Bank

from

1999

to

2002.

28

RICs

consisting

of

166

Portfolios

None

Lena

G.

Goldberg

1949

Trustee

(Since

2016)

Director,

Pioneer

Public

Interest

Law

Center

since

2023;

Director,

Charles

Stark

Draper

Laboratory,

Inc.

from

2013

to

2021;

Senior

Lecturer,

Harvard

Business

School

from

2008

to

2021;

FMR

LLC/Fidelity

Investments

(financial

services)

from

1996

to

2008,

serving

in

various

senior

roles

including

Executive

Vice

President

-

Strategic

Corporate

Initiatives

and

Executive

Vice

President

and

General

Counsel;

Partner,

Sullivan

&

Worcester

LLP

from

1985

to

1996

and

Associate

thereof

from

1979

to

1985.

28

RICs

consisting

of

166

Portfolios

None

Henry

R.

Keizer

1956

Trustee

(Since

2016)

Director,

Park

Indemnity

Ltd.

(captive

insurer)

from

2010

to

2022.

28

RICs

consisting

of

166

Portfolios

GrafTech

International

Ltd.

(materials

manufacturing);

Sealed

Air

Corp.

(packaging);

WABCO

(commercial

vehicle

safety

systems)

from

2015

to

2020;

Hertz

Global

Holdings

(car

rental)

from

2015

to

2021.

Cynthia

A.

Montgomery

1952

Trustee

(Since

2019)

Professor,

Harvard

Business

School

since

1989.

28

RICs

consisting

of

166

Portfolios

None

Trustee

and

Officer

Information

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

78

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

5

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

5

Years

Donald

C.

Opatrny

1952

Trustee

(Since

2015)

Chair

of

the

Board

of

Phoenix

Art

Museum

since

2022

and

Trustee

thereof

since

2018;

Chair

of

the

Investment

Committee

of

The

Arizona

Community

Foundation

since

2022

and

Trustee

thereof

since

2020;

Director,

Athena

Capital

Advisors

LLC

(investment

management

firm)

from

2013

to

2020;

Trustee,

Vice

Chair,

Member

of

the

Executive

Committee

and

Chair

of

the

Investment

Committee,

Cornell

University

from

2004

to

2019;

Member

of

Affordable

Housing

Supply

Board

of

Jackson,

Wyoming

from

2017

to

2022;

Member,

Investment

Funds

Committee,

State

of

Wyoming

from

2017

to

2023;

Trustee,

Artstor

(a

Mellon

Foundation

affiliate)

from

2010

to

2015;

Member

of

the

Investment

Committee,

Mellon

Foundation

from

2009

to

2015;

President,

Trustee

and

Member

of

the

Investment

Committee,

The

Aldrich

Contemporary

Art

Museum

from

2007

to

2014;

Trustee

and

Chair

of

the

Investment

Committee,

Community

Foundation

of

Jackson

Hole

since

2014.

28

RICs

consisting

of

166

Portfolios

None

Kenneth

L.

Urish

1951

Trustee

(Since

2019)

Managing

Partner,

Urish

Popeck

&

Co.,

LLC

(certified

public

accountants

and

consultants)

since

1976;

Past-Chairman

of

the

Professional

Ethics

Committee

of

the

Pennsylvania

Institute

of

Certified

Public

Accountants

and

Committee

Member

thereof

since

2007;

Member

of

External

Advisory

Board,

The

Pennsylvania

State

University

Accounting

Department

since

2001,

Emeritus

since

2022;

Principal,

UP

Strategic

Wealth

Investment

Advisors,

LLC

since

2013;

Trustee,

The

Holy

Family

Institute

from

2001

to

2010;

President

and

Trustee,

Pittsburgh

Catholic

Publishing

Associates

from

2003

to

2008;

Director,

Inter-

Tel

from

2006

to

2007;

Member,

Advisory

Board,

ESG

Competent

Boards

since

2020.

28

RICs

consisting

of

166

Portfolios

None

Claire

A.

Walton

1957

Trustee

(Since

2019)

Advisory

Board

Member,

Grossman

School

of

Business

at

the

University

of

Vermont

since

2023;

Advisory

Board

Member,

Scientific

Financial

Systems

since

2022;

General

Partner

of

Neon

Liberty

Capital

Management,

LLC

from

2003

to

2023

Chief

Operating

Officer

and

Chief

Financial

Officer

of

Liberty

Square

Asset

Management,

LP

from

1998

to

2015;

Director,

Boston

Hedge

Fund

Group

from

2009

to

2018;

Director,

Massachusetts

Council

on

Economic

Education

from

2013

to

2015;

Director,

Woodstock

Ski

Runners

from

2013

to

2022.

28

RICs

consisting

of

166

Portfolios

None

Independent

Trustees

(a)

(continued)

Trustee

and

Officer

Information

(continued)

79

Trustee

and

Officer

Information

Interested

Trustees

(a)(d)

(a)

The

address

of

each

Trustee

is

c/o

BlackRock,

Inc.,

50

Hudson

Yards,

New

York,

New

York

10001.

(b)

Each

Independent

Trustee

holds

office

until

his

or

her

successor

is

duly

elected

and

qualifies

or

until

his

or

her

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

charter

or

statute,

or

until

December

31

of

the

year

in

which

he

or

she

turns

75.

Trustees

who

are

"interested

persons,"

as

defined

in

the

1940

Act,

serve

until

their

successor

is

duly

elected

and

qualifies

or

until

their

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

statute,

or

until

December

31

of

the

year

in

which

they

turn

72.

The

Board

may

determine

to

extend

the

terms

of

Independent

Trustees

on

a

case-by-case

basis,

as

appropriate.

(c)

Following

the

combination

of

Merrill

Lynch

Investment

Managers,

L.P.

(“MLIM”)

and

BlackRock,

Inc.

in

September

2006,

the

various

legacy

MLIM

and

legacy

BlackRock

fund

boards

were

realigned

and

consolidated

into

three

new

fund

boards

in

2007.

In

addition,

effective

January

1,

2019,

three

BlackRock

Fund

Complexes

were

realigned

and

consolidated

into

two

BlackRock

Fund

Complexes.

As

a

result,

although

the

chart

shows

the

year

that

each

Independent

Trustee

joined

the

Board,

certain

Independent

Trustees

first

became

members

of

the

boards

of

other

BlackRock-advised

Funds,

legacy

MLIM

funds

or

legacy

BlackRock

funds

as

follows:

Susan

J.

Carter,

2016;

Collette

Chilton,

2015;

Neil

A.

Cotty,

2016;

Cynthia

A.

Montgomery,

1994;

Mark

Stalnecker,

2015;

Kenneth

L.

Urish,

1999;

Claire

A.

Walton,

2016.

(d)

Mr.

Fairbairn

and

Mr.

Perlowski

are

both

“interested

persons,”

as

defined

in

the

1940

Act,

of

the

Trust

based

on

their

positions

with

BlackRock,

Inc.

and

its

affiliates.

Mr.

Fairbairn

and

Mr.

Perlowski

are

also

board

members

of

the

BlackRock

Fixed-Income

Complex.

(e)

Mr.

Perlowski

is

also

a

trustee

of

the

BlackRock

Credit

Strategies

Fund

and

BlackRock

Private

Investments

Fund.

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

5

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

5

Years

Robert

Fairbairn

1965

Trustee

(Since

2015)

Vice

Chairman

of

BlackRock,

Inc.

since

2019;

Member

of

BlackRock's

Global

Executive

and

Global

Operating

Committees;

Co-Chair

of

BlackRock's

Human

Capital

Committee;

Senior

Managing

Director

of

BlackRock,

Inc.

from

2010

to

2019;

oversaw

BlackRock's

Strategic

Partner

Program

and

Strategic

Product

Management

Group

from

2012

to

2019;

Member

of

the

Board

of

Managers

of

BlackRock

Investments,

LLC

from

2011

to

2018;

Global

Head

of

BlackRock's

Retail

and

iShares

®

businesses

from

2012

to

2016.

97

RICs

consisting

of

268

Portfolios

None

John

M.

Perlowski

(e)

1964

Trustee

(Since

2015);

President

and

Chief

Executive

Officer

(Since

2010)

Managing

Director

of

BlackRock,

Inc.

since

2009;

Head

of

BlackRock

Global

Accounting

and

Product

Services

since

2009;

Advisory

Director

of

Family

Resource

Network

(charitable

foundation)

since

2009.

99

RICs

consisting

of

270

Portfolios

None

Trustee

and

Officer

Information

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

80

Officers

Who

Are

Not

Trustees

(a)

(a)

The

address

of

each

Officer

is

c/o

BlackRock,

Inc.,

50

Hudson

Yards,

New

York,

New

York

10001.

(b)

Officers

of

the

Trust

serve

at

the

pleasure

of

the

Board.

Further

information

about

the

Trust's

Trustees

and

Officers

is

available

in

the

Trust's

Statement

of

Additional

Information,

which

can

be

obtained

without

charge

by

calling

(800)

441-7762.

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

Principal

Occupation(s)

During

Past

5

Years

Jennifer

McGovern

1977

Vice

President

(Since

2014)

Managing

Director

of

BlackRock,

Inc.

since

2016;

Director

of

BlackRock,

Inc.

from

2011

to

2015;

Head

of

Americas

Product

Development

and

Governance

for

BlackRock’s

Global

Product

Group

since

2019;

Head

of

Product

Structure

and

Oversight

for

BlackRock's

U.S.

Wealth

Advisory

Group

from

2013

to

2019.

Trent

Walker

1974

Chief

Financial

Officer

(Since

2021)

Managing

Director

of

BlackRock,

Inc.

since

September

2019;

Executive

Vice

President

of

PIMCO

from

2016

to

2019;

Senior

Vice

President

of

PIMCO

from

2008

to

2015;

Treasurer

from

2013

to

2019

and

Assistant

Treasurer

from

2007

to

2017

of

PIMCO

Funds,

PIMCO

Variable

Insurance

Trust,

PIMCO

ETF

Trust,

PIMCO

Equity

Series,

PIMCO

Equity

Series

VIT,

PIMCO

Managed

Accounts

Trust,

2

PIMCO-sponsored

interval

funds

and

21

PIMCO-sponsored

closed-end

funds.

Jay

M.

Fife

1970

Treasurer

(Since

2007)

Managing

Director

of

BlackRock,

Inc.

since

2007.

Aaron

Wasserman

1974

Chief

Compliance

Officer

(Since

2023)

Managing

Director

of

BlackRock,

Inc.

since

2018;

Chief

Compliance

Officer

of

the

BlackRock-advised

funds

in

the

BlackRock

Multi-Asset

Complex,

the

BlackRock

Fixed-Income

Complex

and

the

iShares

Complex

since

2023;

Deputy

Chief

Compliance

Officer

for

the

BlackRock-advised

funds

in

the

BlackRock

Multi-Asset

Complex,

the

BlackRock

Fixed-

Income

Complex

and

the

iShares

Complex

from

2014

to

2023.

Lisa

Belle

1968

Anti-Money

Laundering

Compliance

Officer

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2019;

Global

Financial

Crime

Head

for

Asset

and

Wealth

Management

of

JP

Morgan

from

2013

to

2019;

Managing

Director

of

RBS

Securities

from

2012

to

2013;

Head

of

Financial

Crimes

for

Barclays

Wealth

Americas

from

2010

to

2012.

Janey

Ahn

1975

Secretary

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2018;

Director

of

BlackRock,

Inc.

from

2009

to

2017.

Effective

July

1,

2023,

Aaron

Wasserman

replaced

Charles

Park

as

Chief

Compliance

Officer

of

the

Trust.

Additional

Information

81

Additional

Information

Tailored

Shareholder

Reports

for

Open-End Mutual

Funds

and

ETFs

Effective

January

24,

2023,

the

SEC

adopted

rule

and

form

amendments

to

require

open-end mutual

funds

and

ETFs

to

transmit

concise

and

visually

engaging

streamlined

annual

and

semiannual

reports

to

shareholders

that

highlight

key

information.

Other

information,

including

financial

statements,

will

no

longer

appear

in

a

streamlined

shareholder

report

but

must

be

available

online,

delivered

free

of

charge

upon

request,

and

filed

on

a

semiannual

basis

on

Form

N-CSR.

The

rule

and

form

amendments

have

a

compliance

date

of

July

24,

2024.

At

this

time,

management

is

evaluating

the

impact

of

these

amendments

on

the

shareholder

reports

for

the

Funds.

General

Information 

Quarterly

performance,

semi-annual

and

annual

reports,

current

net

asset

value

and

other

information

regarding

the

Fund

may

be

found

on

BlackRock’s

website,

which

can

be

accessed

at

blackrock.com

.

Any

reference

to

BlackRock’s

website

in

this

report

is

intended

to

allow

investors

public

access

to

information

regarding

the

Fund

and

does

not,

and

is

not

intended

to,

incorporate

BlackRock’s

website

in

this

report.

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,

Procedures and

Voting

Records

A

description

of

the

policies

and

procedures

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

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

without

charge,

upon

request (1)

by

calling

(800)

441-7762

;

(2)

on

the

BlackRock

website

at

blackrock.com

;

and

(3)

on

the

SEC’s

website

at

sec.gov

.

BlackRock’s

Mutual

Fund

Family

BlackRock

offers

a

diverse

lineup

of

open-end

mutual

funds

crossing

all

investment

styles

and

managed

by

experts

in

equity,

fixed-income

and

tax-exempt

investing.

Visit

blackrock.com

for

more

information.

Shareholder

Privileges

Account

Information

Call

us

at

(800) 

441-7762

from

8:00

AM

to

6:00

PM

ET

on

any

business

day

to

get

information

about

your

account

balances,

recent

transactions

and

share

prices.

You

can

also

visit

blackrock.com

for

more

information.

Automatic

Investment

Plans

Investor

class

shareholders

who

want

to

invest

regularly

can

arrange

to

have

$50

or

more

automatically

deducted

from

their

checking

or

savings

account

and

invested

in

any

of

the

BlackRock

funds.

Systematic

Withdrawal

Plans

Investor

class

shareholders

can

establish

a

systematic

withdrawal

plan

and

receive

periodic

payments

of

$50

or

more

from

their

BlackRock

funds,

as

long

as

their

account

balance

is

at

least

$10,000.

Retirement

Plans

Shareholders

may

make

investments

in

conjunction

with

Traditional,

Rollover,

Roth,

Coverdell,

Simple

IRAs,

SEP

IRAs

and

403(b)

Plans.

Additional

Information

(continued)

2023

BlackRock

Annual

Report

to

Shareholders

82

BlackRock

Privacy

Principles

BlackRock

is

committed

to

maintaining

the

privacy

of

its

current

and

former

fund

investors

and

individual

clients

(collectively,

“Clients”)

and

to

safeguarding

their

non-public

personal

information.

The

following

information

is

provided

to

help

you

understand

what

personal

information

BlackRock

collects,

how

we

protect

that

information

and

why

in

certain

cases

we

share

such

information

with

select

parties.

If

you

are

located

in

a

jurisdiction

where

specific

laws,

rules

or

regulations

require

BlackRock

to

provide

you

with

additional

or

different

privacy-related

rights

beyond

what

is

set

forth

below,

then

BlackRock

will

comply

with

those

specific

laws,

rules

or

regulations.

BlackRock

obtains

or

verifies

personal

non-public

information

from

and

about

you

from

different

sources,

including

the

following:

(i)

information

we

receive

from

you

or,

if

applicable,

your

financial

intermediary,

on

applications,

forms

or

other

documents;

(ii)

information

about

your

transactions

with

us,

our

affiliates,

or

others;

(iii)

information

we

receive

from

a

consumer

reporting

agency;

and

(iv)

from

visits

to

our

websites.

BlackRock

does

not

sell

or

disclose

to

non-affiliated

third

parties

any

non-public

personal

information

about

its

Clients,

except

as

permitted

by

law

or

as

is

necessary

to

respond

to

regulatory

requests

or

to

service

Client

accounts.

These

non-affiliated

third

parties

are

required

to

protect

the

confidentiality

and

security

of

this

information

and

to

use

it

only

for

its

intended

purpose.

We

may

share

information

with

our

affiliates

to

service

your

account

or

to

provide

you

with

information

about

other

BlackRock

products

or

services

that

may

be

of

interest

to

you.

In

addition,

BlackRock

restricts

access

to

non-public

personal

information

about

its

Clients

to

those

BlackRock

employees

with

a

legitimate

business

need

for

the

information.

BlackRock

maintains

physical,

electronic

and

procedural

safeguards

that

are

designed

to

protect

the

non-public

personal

information

of

its

Clients,

including

procedures

relating

to

the

proper

storage

and

disposal

of

such

information.

Fund

and

Service

Providers

Investment

Adviser

and

Administrator

BlackRock

Advisors,

LLC

Wilmington,

DE

19809

Sub-Advisers

BlackRock

International

Limited

Edinburgh,

EH3

8BL

United

Kingdom

BlackRock

(Singapore)

Limited

079912

Singapore

Accounting

Agent

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Transfer

Agent

BNY

Mellon

Investment

Servicing

(US)

Inc.

Wilmington,

DE

19809

Custodian

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Independent

Registered

Public

Accounting

Firm

Deloitte

&

Touche

LLP

Boston,

MA

02116

Distributor

BlackRock

Investments,

LLC

New

York,

NY

10001

Legal

Counsel

Sidley

Austin

LLP

New

York,

NY

10019

Address

of

the

Trust

100

Bellevue

Parkway

Wilmington,

DE

19809

Glossary

of

Terms

Used

in

this

Report

83

Glossary

of

Terms

Used

in

this

Report

Currency

Abbreviation

EUR

Euro

GBP

British

Pound

JPY

Japanese

Yen

USD

United

States

Dollar

Portfolio

Abbreviation

ADR

American

Depositary

Receipts

CLO

Collateralized

Loan

Obligation

DAC

Designated

Activity

Company

ETF

Exchange-Traded

Fund

LIBOR

London

Interbank

Offered

Rate

MBS

Mortgage-Backed

Securities

OTC

Over-the-counter

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

SCA

Svenska

Cellulosa

Aktiebolaget

SOFR

Secured

Overnight

Financing

Rate

Want

to

know

more?

blackrock.com

|

800-441-7762

This

report

is

intended

for

current

holders.

It

is

not

authorized

for

use

as

an

offer

of

sale

or

a

solicitation

of

an

offer

to

buy

shares

of

the

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.

MIIP-12/23-AR

Item 2 – Code of Ethics –

The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.  During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes.  During the period covered by this report, there have been no waivers granted under the code of ethics. The

registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Neil A. Cotty

Henry R. Keizer

Kenneth L. Urish

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 – Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

	(a) Audit Fees		(b) Audit-Related Fees1		(c) Tax Fees2		(d) All Other Fees
Entity Name	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Managed Income Fund	$62,424	$59,976	$0	$44	$17,600	$16,900	$407	$431

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees1	$0	$0
(c) Tax Fees2	$0	$0
(d) All Other Fees3	$2,154,000	$2,098,000

1

The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2

The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3

Non-audit fees of $2,154,000 and $2,098,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription.  These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

 (e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services.  Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee.  The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant.  Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”).  The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period.  Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project.  For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

                        Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services).  The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting.  At this meeting, an analysis of such services is presented to the Committee for ratification.  The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

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

(f) Not Applicable

(g)

The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Managed Income Fund	$18,007	$17,375

              Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

Current Fiscal Year End	Previous Fiscal Year End
$2,154,000	$2,098,000

              These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

              (h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and

the Affiliated Service Providers

that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

               (i) – Not Applicable

               (j) – Not Applicable

Item 5 –  Audit Committee of Listed Registrant – Not Applicable

Item 6 – Investments

 
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 –  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 –  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

Item 13 – Recovery of Erroneously Awarded Compensation – Not Applicable

Item 14 – Exhibits attached hereto

              (a)(1) Code of Ethics – See Item 2

              (a)(2) Section 302 Certifications are attached

<<section302>>

(a)(3)

Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(4)

Change in Registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached

<<section906>>

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Funds II  

By:     /s/ John M. Perlowski _

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Funds II  

Date: February 26, 2024

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:     /s/ John M. Perlowski _

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Funds II  

Date: February 26, 2024

By:     /s/ Trent Walker _

          Trent Walker

Chief Financial Officer (principal financial officer) of

BlackRock Funds II  

Date: February 26, 2024