BlackRock Variable Series Funds II N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORMN-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT

COMPANIES

Investment Company Act file number:811-23346

Name of Fund: BlackRock Variable Series Funds II, Inc.

BlackRock High Yield V.I. Fund

BlackRock Total Return V.I. Fund

BlackRock U.S. Government Bond V.I. Fund

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 12/31/2019

Date of reporting period: 06/30/2019

Item 1 – Report to Stockholders

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds II, Inc.

Not FDIC Insured • May Lose Value • No  Bank Guarantee

The Markets in Review

Dear Shareholder,

Investment performance in the 12 months ended June 30, 2019 was a tale of two markets. The first half of the reporting period was characterized by restrictive monetary policy, deteriorating economic growth, equity market volatility, and rising fear of an imminent recession. During the second half of the reporting period, stocks and bonds rebounded sharply, as restrained inflation and weak economic growth led the U.S. Federal Reserve (the “Fed”) to stop raising interest rates, which led to broad-based optimism that stimulative monetary policy could help forestall a recession.

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

Fixed-income securities delivered modest positive returns with relatively low volatility. Short-term U.S. Treasury yields rose, while longer-term yields declined. This led to positive returns for U.S. Treasuries and a substantial flattening of the yield curve. Investment grade and high yield corporate bonds also posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.

In the U.S. equity market, volatility spiked in late 2018, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil. These risks manifested in a broad-basedsell-off in December, leading to the worst December performance on record since 1931.

Volatility also rose in emerging markets, as the rising U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. U.S.-China trade relations and debt concerns adversely affected the Chinese stock market, particularly in mainland China, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe led to modest performance for European equities.

As equity performance faltered and global economic growth slowed, the Fed shifted to a more patient perspective on the economy in January 2019. In its last four meetings, the Fed left interest rates unchanged and signaled a slower pace of rate hikes in response to the global economic slowdown. Similarly, the European Central Bank signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending.

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

We expect a slowing expansion with additional room to run, as opposed to an economic recession. However, escalating trade tensions and the resulting disruptions in global supply chains have become the greatest risk to the global expansion.

We believe U.S. and emerging market equities remain relatively attractive. Within U.S. equities, companies with high-quality earnings and strong balance sheets offer the most attractive risk/rewardtrade-off. For bonds, U.S. Treasuries are likely to help buffer against volatility in risk assets, while income from other types of bonds can continue to offer steady returns.

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

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of June 30, 2019
	6-Month	12-Month
U.S. large cap equities (S&P 500®Index)	18.54%	10.42%
U.S. small cap equities (Russell 2000®Index)	16.98	(3.31)
International equities (MSCI Europe, Australasia, Far East Index)	14.03	1.08
Emerging market equities (MSCI Emerging Markets Index)	10.58	1.21
3-month Treasury bills (ICE BofAML3-Month U.S. Treasury Bill Index)	1.24	2.31
U.S. Treasury securities (ICE BofAML10-Year U.S. Treasury Index)	7.45	10.38
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	6.11	7.87
Tax-exempt municipal bonds (S&P Municipal Bond Index)	4.94	6.39
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	9.94	7.48
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGEISNOT PARTOF YOUR FUND REPORT

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds II, Inc.

▶ BlackRock High Yield V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019 BlackRock High Yield V.I. Fund

Investment Objective

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

Portfolio Management Commentary

How did the Fund perform?

During thesix-month period ended June 30, 2019, the Fund’s Class I Shares performed in line with the benchmark, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index, while the Fund’s Class III Shares underperformed the benchmark.

What factors influenced performance?

High-yield bonds delivered strong returns in the first half of 2019, reflecting the combination of falling interest rates and a narrowing of yield spreads brought about, in part, by investors’ robust appetite for risk.

Security selection, most importantly in the metals & mining and independent energy industries, was a key driver of the Fund’s relative performance. The Fund’s positioning in technology was also additive. Selection in B rated credits made the largest contribution by rating tier, followed by theCCC-rated segment.

The portfolio’s underweight positions in the retail, finance and home construction industries were key detractors. By credit rating, an underweight in BB rated securities was the largest detractor given the outperformance of this high-quality market segment. The portfolio’sout-of-benchmark position in floating rate loan interests (“bank loans”), which lagged high-yield bonds, was a further detractor.

At period end, the Fund had a slightly above average cash balance. The cash balance did not have a material impact on Fund performance.

Describe recent portfolio activity.

While the Fund’s key positioning themes stayed broadly consistent, the investment adviser sought to take advantage of market opportunities by tactically adjusting the portfolio’s sector- and issuer-level positioning.

The Fund remained underweight in BB rated credits and overweight in select CCCs, although the extent of the overweight in CCCs declined from its level at the beginning of the year. While the investment adviser maintained a tactical allocation to bank loans, it reduced the size of the position as more compelling relative values developed among high yield bonds. However, the investment adviser continued to see bank loans as a source of attractive risk-adjusted income.

The investment adviser’s decision to reduce the portfolio’s weighting in energy was the most notable change with respect to sector positioning. At the industry level, the largest underweight position was in independent energy.

Describe portfolio positioning at period end.

In addition to holding a core position in high yield bonds and a tactical allocation to bank loans, the Fund maintained a smaller weighting in common stocks. By credit rating, the Fund favored B rated bonds over those rated BB and CCC. The leading sector overweights were in technology, aerospace & defense, and pharmaceuticals, while consumer cyclicals (primarily retail and home construction) was the largest overweight.

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.

  2 2019BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock High Yield V.I. Fund

Performance Summary for the Period Ended June 30, 2019

											Average Annual Total Returns (a)
	Standardized 30-Day Yields (b)			Unsubsidized 30-Day Yields  (b)			6-Month Total Returns (a)
										1 Year			5 Years			10 Years
Class I(c)(d)		5.43	%		5.33	%		9.94	%		6.67	%		4.08	%		9.26	%
Class III(c)(d)		5.19			5.09			9.81			6.57			3.83			8.99(e	)
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index(f)		—			—			9.94			7.48			4.71			9.22

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  The standardized30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized30-day yield excludes the effects of any waivers and/or reimbursements.

^(c)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend/ payable date. Insurance-related fees and expenses are not reflected in these returns.

^(d)  The Fund invests primarily innon-investment grade bonds with maturities of ten years or less. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock High Yield V.I. Fund (the “Predecessor Fund”), a series of BlackRock Variable Series Funds, Inc., through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Fund’s total returns prior to October 1, 2011 are the returns of the Predecessor Fund when it followed different investment objectives and investment strategies under the name “BlackRock High Income V.I. Fund”.

^(e)  The returns for Class III Shares prior to February 15, 2012, the recommencement of operations of Class III Shares, are based upon the performance of the Fund’s Class I Shares, as adjusted to reflect the distribution (12b-1) fees applicable to Class III Shares.

^(f)  An unmanaged index comprised of issues that meet the following criteria: at least $150 million par value outstanding; maximum credit rating of Ba1; at least one year to maturity; and no issuer represents more than 2% of the index.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

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

Expense Example

	Actual						Hypothetical(a)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)			Annualized Expense Ratio
Class I	$	1,000.00	$	1,099.40	$	3.12	$	1,000.00	$	1,021.82	$	3.01			0.60	%
Class III		1,000.00		1,098.10		4.37		1,000.00		1,020.63		4.21	��		0.84

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

^(b) For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

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

Portfolio Information as of June 30, 2019

CREDIT QUALITY ALLOCATION

Credit Rating(a)	Percent of Total Investments(b)
BBB/Baa		6	%
BB/Ba		44
B		38
CCC/Caa		10
NR		2

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

^(b)  Total Investments exclude short-term securities.

FUND SUMMARY 3

Disclosure of Expenses

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

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

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

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

Derivative Financial Instruments

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

4 2019 BLACK ROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security			Shares		Value
Common Stocks — 1.0%
Chemicals — 0.3%
Element Solutions, Inc.(a)				153,824	$	1,590,540
Containers & Packaging — 0.2%
Crown Holdings, Inc.(a)				14,659		895,665
Equity Real Estate Investment Trusts (REITs) — 0.1%
Gaming and Leisure Properties, Inc.				12,660		493,487
Hotels, Restaurants & Leisure — 0.2%
Star Group, Inc. (The)(a)				54,131		923,850
Metals & Mining — 0.2%
Constellium NV, Class A(a)				80,736		810,589
Total Common Stocks — 1.0%     (Cost: $5,402,060)					4,714,131
	Par (000)
Corporate Bonds — 82.9%
Aerospace & Defense — 4.2%
Arconic, Inc.:
5.40%, 04/15/21		USD		16		16,586
5.87%, 02/23/22				335		356,845
5.13%, 10/01/24				1,567		1,654,862
BBA US Holdings, Inc., 5.38%, 05/01/26(b)				537		557,137
Bombardier, Inc.(b):
8.75%, 12/01/21				1,205		1,313,450
5.75%, 03/15/22				690		699,488
6.13%, 01/15/23				668		677,185
7.50%, 12/01/24				925		943,500
7.50%, 03/15/25				539		540,509
7.88%, 04/15/27				2,725		2,728,406
BWX Technologies, Inc., 5.38%, 07/15/26(b)				391		403,688
Kratos Defense & Security Solutions, Inc.,
6.50%, 11/30/25(b)				765		822,375
Pioneer Holdings LLC, 9.00%, 11/01/22(b)				253		259,958
TransDigm UK Holdings plc, 6.88%, 05/15/26				565		571,709
TransDigm, Inc.:
6.00%, 07/15/22				58		58,580
6.50%, 05/15/25				196		198,254
6.25%, 03/15/26(b)				8,841		9,305,154
						21,107,686
Air Freight & Logistics — 0.0%
XPO Logistics, Inc., 6.75%, 08/15/24(b)				29		30,921
Auto Components — 1.4%
Allison Transmission, Inc.(b):
5.00%, 10/01/24				16		16,320
5.88%, 06/01/29				523		550,458
Icahn Enterprises LP:
6.75%, 02/01/24				203		210,866
6.38%, 12/15/25				638		651,270
6.25%, 05/15/26(b)				477		483,559
Panther BF Aggregator 2 LP(b):
6.25%, 05/15/26				2,305		2,394,319
8.50%, 05/15/27				2,542		2,618,260
						6,925,052
Automobiles — 0.1%
Tesla, Inc., 5.30%, 08/15/25(b)				295		258,863

Security		Par (000)		Value
Banks — 0.6%
Banco Espirito Santo SA(a)(c):
2.63%, 05/08/17	EUR		100	$	25,016
4.75%, 01/15/18			100		25,016
4.00%, 01/21/19			100		25,017
Barclays plc:
4.38%, 09/11/24	USD		850		871,302
5.20%, 05/12/26			200		209,714
CIT Group, Inc.:
5.00%, 08/15/22			30		31,832
5.00%, 08/01/23			446		476,105
5.25%, 03/07/25			859		941,679
6.13%, 03/09/28			132		150,150
HSBC Holdings plc, (USD Swap Rate 5 Year + 3.75%), 6.00%(d)(e)			465		475,462
					3,231,293
Building Products — 0.6%(b)
Builders FirstSource, Inc., 6.75%, 06/01/27			164		173,020
CPG Merger Sub LLC, 8.00%, 10/01/21			604		612,305
JELD-WEN, Inc.:
4.63%, 12/15/25			200		196,250
4.88%, 12/15/27			4		3,870
Masonite International Corp., 5.75%, 09/15/26			231		237,930
PGT Escrow Issuer, Inc., 6.75%, 08/01/26			165		174,281
Standard Industries, Inc.:
5.50%, 02/15/23			109		111,998
5.38%, 11/15/24			528		546,480
6.00%, 10/15/25			746		791,692
					2,847,826
Capital Markets — 0.1%
Credit Suisse Group AG, (USD Swap Semi 5 Year + 4.60%), 7.50%(b)(d)(e)			200		213,614
FS Energy & Power Fund, 7.50%, 08/15/23(b)			119		120,785
MSCI, Inc., 4.75%, 08/01/26(b)			62		64,325
Owl Rock Capital Corp., 5.25%, 04/15/24			282		292,267
					690,991
Chemicals — 1.9%
Alpha 2 BV, 8.75%, (8.75% Cash or 9.50%
PIK), 06/01/23(b)(f)			410		402,825
Alpha 3 BV, 6.25%, 02/01/25(b)			1,900		1,871,500
Axalta Coating Systems LLC, 4.88%, 08/15/24(b)			1,003		1,033,090
Blue Cube Spinco LLC:
9.75%, 10/15/23			937		1,035,385
10.00%, 10/15/25			408		461,550
Chemours Co. (The):
6.63%, 05/15/23			61		63,097
4.00%, 05/15/26	EUR		290		329,759
5.38%, 05/15/27	USD		411		391,477
Element Solutions, Inc., 5.88%, 12/01/25(b)			2,285		2,379,256
Gates Global LLC, 6.00%, 07/15/22(b)			399		399,249
GCP Applied Technologies, Inc., 5.50%, 04/15/26(b)			42		42,630
Momentive Performance Materials USA Escrow LLC, 8.88%, 10/15/20(a)(c)(g)			334		—
NOVA Chemicals Corp., 4.88%, 06/01/24(b)			81		83,835
PQ Corp., 5.75%, 12/15/25(b)			906		916,193
W.R. Grace & Co., 5.63%, 10/01/24(b)			191		205,803
					9,615,649

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Services & Supplies — 2.2%
ACCO Brands Corp., 5.25%, 12/15/24(b)	USD		104	$	105,300
ADT Security Corp. (The):
3.50%, 07/15/22			28		27,930
4.13%, 06/15/23			402		401,719
4.88%, 07/15/32(b)			580		500,250
Advanced Disposal Services, Inc.,
5.63%, 11/15/24(b)			236		246,915
APX Group, Inc.:
8.75%, 12/01/20			361		342,048
7.88%, 12/01/22			183		175,451
Aramark Services, Inc.:
5.00%, 04/01/25(b)			53		53,795
4.75%, 06/01/26			507		515,873
5.00%, 02/01/28(b)			587		603,876
Clean Harbors, Inc.(b):
4.88%, 07/15/27			416		422,802
5.13%, 07/15/29			219		223,380
GFL Environmental, Inc.(b):
7.00%, 06/01/26			555		568,181
8.50%, 05/01/27			438		471,398
Harland Clarke Holdings Corp.,
8.38%, 08/15/22(b)			175		148,531
KAR Auction Services, Inc., 5.13%, 06/01/25(b)			295		300,162
Matthews International Corp.,
5.25%, 12/01/25(b)			117		115,099
Mobile Mini, Inc., 5.88%, 07/01/24			1,091		1,123,730
Nielsen Co. Luxembourg SARL (The),
5.00%, 02/01/25(b)			116		113,970
Nielsen Finance LLC, 5.00%, 04/15/22(b)			723		721,192
Prime Security Services Borrower LLC(b):
9.25%, 05/15/23			298		312,960
5.25%, 04/15/24			1,018		1,035,815
5.75%, 04/15/26			839		866,267
Ritchie Bros Auctioneers, Inc.,
5.38%, 01/15/25(b)			381		394,811
Stericycle, Inc., 5.38%, 07/15/24(b)			406		423,811
Tervita Escrow Corp., 7.63%, 12/01/21(b)			479		487,244
Waste Pro USA, Inc., 5.50%, 02/15/26(b)			249		254,602
					10,957,112
Communications Equipment — 0.8%
CommScope, Inc.(b):
5.50%, 03/01/24			1,248		1,280,760
6.00%, 03/01/26			1,032		1,057,800
Nokia OYJ:
4.38%, 06/12/27			187		191,909
6.63%, 05/15/39			607		665,994
ViaSat, Inc., 5.63%, 04/15/27(b)			954		992,160
					4,188,623
Construction & Engineering — 0.1%(b)
Brand Industrial Services, Inc., 8.50%, 07/15/25			294		266,437
New Enterprise Stone & Lime Co., Inc.:
10.13%, 04/01/22			158		161,555
6.25%, 03/15/26			99		100,485
					528,477
Consumer Finance — 1.8%
Ally Financial, Inc.:
4.13%, 03/30/20			100		100,967
3.88%, 05/21/24			310		317,363
5.13%, 09/30/24			559		603,720
8.00%, 11/01/31			3,027		4,000,816
Credit Acceptance Corp., 6.63%, 03/15/26(b)			250		262,812

Security		Par (000)		Value
Consumer Finance (continued)
Navient Corp.:
5.00%, 10/26/20	USD		47	$	47,940
6.63%, 07/26/21			621		657,484
6.50%, 06/15/22			65		69,046
5.50%, 01/25/23			147		151,042
7.25%, 09/25/23			313		334,127
5.88%, 10/25/24			116		117,305
6.75%, 06/25/25			120		124,200
6.75%, 06/15/26			330		342,375
Springleaf Finance Corp.:
6.13%, 05/15/22			45		48,263
5.63%, 03/15/23			14		14,875
6.13%, 03/15/24			673		723,475
6.88%, 03/15/25			288		315,354
7.13%, 03/15/26			504		552,195
6.63%, 01/15/28			348		365,400
					9,148,759
Containers & Packaging — 2.3%
Ardagh Packaging Finance plc(b):
4.63%, 05/15/23			2,062		2,095,507
7.25%, 05/15/24			2,866		3,020,048
4.75%, 07/15/27	GBP		100		123,820
Berry Global Escrow Corp., 4.88%, 07/15/26(b)	USD		666		680,152
BWAY Holding Co., 5.50%, 04/15/24(b)			1,951		1,951,975
Crown Americas LLC:
4.50%, 01/15/23			37		38,526
4.75%, 02/01/26			472		484,980
4.25%, 09/30/26			629		641,580
Graphic Packaging International LLC, 4.75%, 07/15/27(b)			203		208,329
Greif, Inc., 6.50%, 03/01/27(b)			132		136,290
Intertape Polymer Group, Inc., 7.00%, 10/15/26(b)			185		191,244
LABL Escrow Issuer LLC, 6.75%, 07/15/26(b)			246		248,153
Reynolds Group Issuer, Inc.(b):
5.13%, 07/15/23			874		890,388
7.00%, 07/15/24			723		747,596
Sealed Air Corp.(b):
5.13%, 12/01/24			20		21,000
6.88%, 07/15/33			31		34,536
					11,514,124
Distributors — 0.5%(b)
American Builders & Contractors Supply Co., Inc.:
5.75%, 12/15/23			358		370,977
5.88%, 05/15/26			478		498,315
Core & Main LP, 6.13%, 08/15/25			840		848,400
IAA, Inc., 5.50%, 06/15/27			559		581,360
					2,299,052
Diversified Consumer Services — 0.7%
Allied Universal Holdco LLC, 6.63%, 07/15/26(b)			1,193		1,210,895
frontdoor, Inc., 6.75%, 08/15/26(b)			459		488,835
Graham Holdings Co., 5.75%, 06/01/26(b)			174		184,005
Laureate Education, Inc., 8.25%, 05/01/25(b)			171		186,817
Service Corp. International, 5.13%, 06/01/29			438		460,995
ServiceMaster Co. LLC (The), 5.13%, 11/15/24(b)			885		910,444
					3,441,991

6 2019 BLACK ROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Financial Services — 1.0%(b)
Fairstone Financial, Inc., 7.88%, 07/15/24	USD		147	$	149,756
Refinitiv US Holdings, Inc.:
4.50%, 05/15/26	EUR		650		755,662
6.25%, 05/15/26	USD		884		909,194
8.25%, 11/15/26			1,529		1,572,577
Verscend Escrow Corp., 9.75%, 08/15/26			1,674		1,738,868
					5,126,057
Diversified Telecommunication Services — 5.2%
Altice France SA(b):
6.25%, 05/15/24			246		253,380
7.38%, 05/01/26			2,780		2,849,500
8.13%, 02/01/27			680		714,000
CCO Holdings LLC(b):
4.00%, 03/01/23			424		424,927
5.38%, 05/01/25			37		38,249
5.75%, 02/15/26			52		54,535
5.13%, 05/01/27			1,722		1,782,890
5.88%, 05/01/27			22		23,210
5.00%, 02/01/28			1,561		1,594,093
5.38%, 06/01/29			1,778		1,835,785
CenturyLink, Inc.:
Series S, 6.45%, 06/15/21			385		407,137
Series W, 6.75%, 12/01/23			437		471,414
Series Y, 7.50%, 04/01/24			619		684,769
5.63%, 04/01/25			498		507,960
Series U, 7.65%, 03/15/42			29		27,118
Cincinnati Bell, Inc., 7.00%, 07/15/24(b)			734		647,755
Embarq Corp., 8.00%, 06/01/36			790		764,578
Frontier Communications Corp.:
10.50%, 09/15/22			224		151,760
11.00%, 09/15/25			1,564		969,680
8.00%, 04/01/27(b)			1,981		2,060,240
Intelsat Jackson Holdings SA:
5.50%, 08/01/23			1,196		1,091,350
8.50%, 10/15/24(b)			1,094		1,083,060
9.75%, 07/15/25(b)			1,304		1,330,080
Level 3 Financing, Inc.:
5.38%, 08/15/22			160		160,200
5.13%, 05/01/23			226		227,887
5.38%, 05/01/25			110		113,575
5.25%, 03/15/26			471		487,485
Level 3 Parent LLC, 5.75%, 12/01/22			197		198,724
Qualitytech LP, 4.75%, 11/15/25(b)			278		275,220
Qwest Corp., 6.75%, 12/01/21			197		211,529
Sable International Finance Ltd.,
5.75%, 09/07/27(b)			200		201,375
Sprint Capital Corp., 8.75%, 03/15/32			423		489,623
Telecom Italia Capital SA:
6.38%, 11/15/33			141		146,287
6.00%, 09/30/34			380		387,600
7.20%, 07/18/36			29		31,972
7.72%, 06/04/38			95		107,113
Telecom Italia SpA, 5.30%, 05/30/24(b)			947		980,145
Telesat Canada, 8.88%, 11/15/24(b)			203		219,747
Virgin Media Finance plc, 5.75%, 01/15/25(b)			1,347		1,394,132
Virgin Media Secured Finance plc(b):
5.25%, 01/15/26			465		476,490
5.50%, 05/15/29			400		405,880
					26,282,454
Electric Utilities — 0.5%
DPL, Inc., 7.25%, 10/15/21			19		20,425
Edison International, 5.75%, 06/15/27			70		75,185

Security		Par (000)		Value
Electric Utilities (continued)
NextEra Energy Operating Partners LP(b):
4.25%, 07/15/24	USD		816	$	821,116
4.25%, 09/15/24			193		194,023
4.50%, 09/15/27			182		179,725
Vistra Operations Co. LLC(b):
3.55%, 07/15/24			335		336,971
5.50%, 09/01/26			3		3,169
5.63%, 02/15/27			204		215,985
5.00%, 07/31/27			324		335,745
4.30%, 07/15/29			458		464,302
					2,646,646
Electrical Equipment — 0.3%(b)
Sensata Technologies BV:
5.63%, 11/01/24			662		713,305
5.00%, 10/01/25			99		103,208
Vertiv Group Corp., 9.25%, 10/15/24			824		788,980
					1,605,493
Electronic Equipment, Instruments & Components — 0.1%
CDW LLC:
5.00%, 09/01/23			169		171,957
5.00%, 09/01/25			222		231,158
Itron, Inc., 5.00%, 01/15/26(b)			34		34,765
					437,880
Energy Equipment & Services — 1.9%
Apergy Corp., 6.38%, 05/01/26			224		225,680
Archrock Partners LP, 6.88%, 04/01/27(b)			211		220,516
Diamond Offshore Drilling, Inc.,
4.88%, 11/01/43			286		177,320
Ensco Rowan plc:
4.70%, 03/15/21			52		48,322
4.50%, 10/01/24			136		101,320
5.20%, 03/15/25			152		111,720
7.75%, 02/01/26			297		221,265
5.75%, 10/01/44			237		136,275
Nabors Industries, Inc.:
5.00%, 09/15/20			22		22,055
4.63%, 09/15/21			453		441,675
Noble Holding International Ltd.:
7.75%, 01/15/24			34		25,925
7.88%, 02/01/26(b)			1,393		1,198,426
5.25%, 03/15/42			182		96,915
Pacific Drilling SA, 8.38%, 10/01/23(b)			1,499		1,484,010
Precision Drilling Corp.:
5.25%, 11/15/24			24		22,200
7.13%, 01/15/26(b)			162		156,735
Rowan Cos., Inc., 4.88%, 06/01/22			740		681,725
Transocean Pontus Ltd., 6.13%, 08/01/25(b)			374		385,447
Transocean Poseidon Ltd., 6.88%, 02/01/27(b)			485		512,584
Transocean Sentry Ltd., 5.38%, 05/15/23(b)			442		442,553
Transocean, Inc.:
6.50%, 11/15/20			9		9,270
8.51%, 12/15/21			31		32,589
9.00%, 07/15/23(b)			720		766,800
7.25%, 11/01/25(b)			460		435,850
7.50%, 01/15/26(b)			393		374,332
USA Compression Partners LP:
6.88%, 04/01/26			831		878,699
6.88%, 09/01/27(b)			488		512,454
					9,722,662
Entertainment — 0.7%
Ascend Learning LLC:
6.88%, 08/01/25(b)			982		998,996

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Entertainment (continued)
Lions Gate Capital Holdings LLC(b):
6.38%, 02/01/24	USD		40	$	42,050
5.88%, 11/01/24			224		229,600
Netflix, Inc.:
5.38%, 02/01/21			60		62,025
4.88%, 04/15/28			37		38,156
5.88%, 11/15/28			1,160		1,284,259
5.38%, 11/15/29(b)			1,044		1,108,927
					3,764,013
Equity Real Estate Investment Trusts (REITs) — 2.1%
Brookfield Property REIT, Inc.,
5.75%, 05/15/26(b)			252		259,560
CyrusOne LP:
5.00%, 03/15/24			144		147,960
5.38%, 03/15/27			112		117,880
Equinix, Inc.:
5.38%, 04/01/23			159		162,180
5.88%, 01/15/26			1,091		1,155,096
5.38%, 05/15/27			254		272,281
GLP Capital LP:
5.38%, 11/01/23			66		70,764
5.25%, 06/01/25			320		342,848
5.38%, 04/15/26			172		186,009
Iron Mountain, Inc., 4.88%, 09/15/27(b)			596		590,785
iStar, Inc.:
4.63%, 09/15/20			40		40,350
5.25%, 09/15/22			75		76,781
MGM Growth Properties Operating Partnership LP:
5.63%, 05/01/24			711		766,103
4.50%, 09/01/26			1,029		1,056,011
5.75%, 02/01/27(b)			160		172,400
4.50%, 01/15/28			1,140		1,131,450
MPT Operating Partnership LP,
5.00%, 10/15/27			1,374		1,415,220
SBA Communications Corp.:
4.00%, 10/01/22			858		869,797
4.88%, 09/01/24			1,446		1,489,380
VICI Properties 1 LLC, 8.00%, 10/15/23			200		221,039
					10,543,894
Food & Staples Retailing — 0.0%
Albertsons Cos. LLC:
6.63%, 06/15/24			163		168,909
5.75%, 03/15/25			79		79,616
					248,525
Food Products — 1.2%
B&G Foods, Inc., 5.25%, 04/01/25			76		76,760
Chobani LLC, 7.50%, 04/15/25(b)			216		201,960
Darling Ingredients, Inc., 5.25%, 04/15/27(b)			192		200,640
JBS USA LUX SA(b):
5.88%, 07/15/24			947		974,207
5.75%, 06/15/25			1,346		1,403,205
6.75%, 02/15/28			249		269,854
6.50%, 04/15/29			930		1,010,213
Post Holdings, Inc.(b):
5.50%, 03/01/25			349		360,342
5.00%, 08/15/26			330		334,537
5.75%, 03/01/27			337		347,953
5.63%, 01/15/28			35		35,963
5.50%, 12/15/29			380		380,950
Simmons Foods, Inc., 7.75%, 01/15/24(b)			437		470,867
					6,067,451

Security		Par (000)		Value
Gas Utilities — 0.1%
Superior Plus LP, 7.00%, 07/15/26(b)	USD		655	$	677,106
Health Care Equipment & Supplies — 0.8%
Fresenius US Finance II, Inc.,
4.50%, 01/15/23(b)			121		125,818
Hologic, Inc.(b):
4.38%, 10/15/25			279		282,836
4.63%, 02/01/28			150		152,250
Immucor, Inc., 11.13%, 02/15/22(b)			284		289,680
Ortho-Clinical Diagnostics, Inc.,
6.63%, 05/15/22(b)			2,494		2,381,770
Sotera Health Holdings LLC, 6.50%, 05/15/23(b)			648		656,100
Teleflex, Inc.:
4.88%, 06/01/26			314		325,775
4.63%, 11/15/27			51		52,466
					4,266,695
Health Care Providers & Services — 4.8%
Acadia Healthcare Co., Inc.:
5.13%, 07/01/22			231		232,155
6.50%, 03/01/24			348		362,790
AHP Health Partners, Inc., 9.75%, 07/15/26(b)			213		229,507
Centene Corp., 5.38%, 06/01/26(b)			2,672		2,808,940
Community Health Systems, Inc.(b):
8.63%, 01/15/24			990		990,000
8.00%, 03/15/26			629		605,224
DaVita, Inc., 5.13%, 07/15/24			502		502,151
Eagle Holding Co. II LLC(b)(f):
7.63%, (7.63% Cash or 8.38% PIK), 05/15/22			108		108,540
7.75%, (7.75% Cash or 8.50% PIK), 05/15/22			541		545,058
Encompass Health Corp., 5.75%, 11/01/24			171		174,129
Envision Healthcare Corp., 8.75%, 10/15/26(b)			484		337,590
HCA, Inc.:
5.88%, 05/01/23			37		40,233
5.38%, 02/01/25			626		675,689
5.88%, 02/15/26			22		24,310
5.38%, 09/01/26			217		233,817
5.63%, 09/01/28			1,575		1,704,937
5.88%, 02/01/29			1,654		1,813,198
MEDNAX, Inc.(b):
5.25%, 12/01/23			343		338,712
6.25%, 01/15/27			1,394		1,371,348
Molina Healthcare, Inc.:
5.38%, 11/15/22			318		330,720
4.88%, 06/15/25(b)			523		530,845
MPH Acquisition Holdings LLC,
7.13%, 06/01/24(b)			503		471,663
NVA Holdings, Inc., 6.88%, 04/01/26(b)			314		328,130
Polaris Intermediate Corp., 8.50%, (8.50% Cash or 9.25% PIK), 12/01/22(b)(f)			994		877,205
RegionalCare Hospital Partners Holdings, Inc.,
8.25%, 05/01/23(b)			901		959,002
Surgery Center Holdings, Inc.(b):
6.75%, 07/01/25			736		636,640
10.00%, 04/15/27			298		297,255
Team Health Holdings, Inc., 6.38%, 02/01/25(b)			391		299,115
Tenet Healthcare Corp.:
6.00%, 10/01/20			118		121,474
8.13%, 04/01/22			1,695		1,777,631
4.63%, 07/15/24			302		305,775
6.25%, 02/01/27(b)			2,188		2,264,580
Vizient, Inc., 6.25%, 05/15/27(b)			579		611,598

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Health Care Providers & Services (continued)
WellCare Health Plans, Inc.:
5.25%, 04/01/25	USD		497	$	518,122
5.38%, 08/15/26(b)			727		770,620
					24,198,703
Health Care Technology — 0.3%
IQVIA, Inc.:
3.25%, 03/15/25	EUR		224		262,337
5.00%, 10/15/26(b)	USD		472		487,340
5.00%, 05/15/27(b)			681		703,133
					1,452,810
Hotels, Restaurants & Leisure — 4.6%
1011778 BC ULC(b):
4.25%, 05/15/24			795		803,944
5.00%, 10/15/25			3,195		3,219,921
Aramark International Finance SARL,
3.13%, 04/01/25	EUR		506		594,026
Boyd Gaming Corp., 6.00%, 08/15/26	USD		178		187,122
Boyne USA, Inc., 7.25%, 05/01/25(b)			276		298,770
Cedar Fair LP, 5.25%, 07/15/29(b)			416		424,449
Churchill Downs, Inc.(b):
5.50%, 04/01/27			809		846,922
4.75%, 01/15/28			557		559,646
Eldorado Resorts, Inc.:
6.00%, 04/01/25			131		137,714
6.00%, 09/15/26			173		189,002
ESH Hospitality, Inc., 5.25%, 05/01/25(b)			215		220,106
Golden Nugget, Inc., 6.75%, 10/15/24(b)			1,673		1,723,190
Hilton Domestic Operating Co., Inc.:
4.25%, 09/01/24			262		265,930
5.13%, 05/01/26			680		709,750
4.88%, 01/15/30(b)			1,529		1,574,870
Hilton Worldwide Finance LLC:
4.63%, 04/01/25			162		165,847
4.88%, 04/01/27			190		196,356
IRB Holding Corp., 6.75%, 02/15/26(b)			103		102,485
KFC Holding Co.(b):
5.00%, 06/01/24			35		36,181
5.25%, 06/01/26			395		414,252
4.75%, 06/01/27			96		98,400
Marriott Ownership Resorts, Inc.,
6.50%, 09/15/26			66		70,785
MGM Resorts International:
6.63%, 12/15/21			1,351		1,459,080
7.75%, 03/15/22			491		547,465
Sabre GLBL, Inc.(b):
5.38%, 04/15/23			229		234,152
5.25%, 11/15/23			333		342,990
Scientific Games International, Inc.:
5.00%, 10/15/25(b)			1,067		1,077,670
3.38%, 02/15/26	EUR		500		570,080
8.25%, 03/15/26(b)	USD		1,367		1,435,336
Six Flags Entertainment Corp.(b):
4.88%, 07/31/24			1,595		1,619,922
5.50%, 04/15/27			761		791,440
Station Casinos LLC, 5.00%, 10/01/25(b)			290		290,725
Viking Cruises Ltd., 5.88%, 09/15/27(b)			1,542		1,561,275
Wyndham Destinations, Inc.:
5.40%, 04/01/24			12		12,569
5.75%, 04/01/27			122		127,338
Wyndham Hotels & Resorts, Inc.,
5.38%, 04/15/26(b)			203		212,389

Security		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
Yum! Brands, Inc.:
3.88%, 11/01/23	USD		97	$	98,271
5.35%, 11/01/43			10		8,950
					23,229,320
Household Durables — 0.9%
Lennar Corp.:
6.63%, 05/01/20			255		262,013
4.88%, 12/15/23			50		52,687
5.25%, 06/01/26			355		378,075
4.75%, 11/29/27			396		416,790
Mattamy Group Corp.(b):
6.88%, 12/15/23			188		195,755
6.50%, 10/01/25			212		223,395
MDC Holdings, Inc., 6.00%, 01/15/43			187		174,845
Meritage Homes Corp.:
7.15%, 04/15/20			70		72,100
5.13%, 06/06/27			279		283,185
PulteGroup, Inc.:
6.38%, 05/15/33			414		441,427
6.00%, 02/15/35			244		250,100
Taylor Morrison Communities, Inc.,
5.88%, 06/15/27(b)			395		401,913
Tempur Sealy International, Inc.,
5.50%, 06/15/26			14		14,525
TRI Pointe Group, Inc.:
4.88%, 07/01/21			115		117,300
5.88%, 06/15/24			123		126,961
5.25%, 06/01/27			129		124,162
Williams Scotsman International, Inc.(b):
7.88%, 12/15/22			231		242,550
6.88%, 08/15/23			540		562,950
					4,340,733
Household Products — 0.1%
Energizer Holdings, Inc.(b):
6.38%, 07/15/26			82		84,255
7.75%, 01/15/27			386		417,779
Spectrum Brands, Inc., 5.75%, 07/15/25			66		68,558
					570,592
Independent Power and Renewable Electricity Producers — 2.1%
AES Corp.:
4.50%, 03/15/23			37		38,018
4.88%, 05/15/23			304		309,332
5.50%, 04/15/25			2		2,077
6.00%, 05/15/26			50		53,000
Calpine Corp.:
5.38%, 01/15/23			1,631		1,649,936
5.88%, 01/15/24(b)			490		501,025
5.50%, 02/01/24			100		99,000
5.75%, 01/15/25			537		532,972
5.25%, 06/01/26(b)			1,349		1,372,608
Clearway Energy Operating LLC:
5.38%, 08/15/24			364		370,370
5.75%, 10/15/25(b)			437		443,555
NRG Energy, Inc.:
3.75%, 06/15/24(b)			224		230,128
6.63%, 01/15/27			1,582		1,718,447
5.75%, 01/15/28			549		588,803
4.45%, 06/15/29(b)			502		522,323
5.25%, 06/15/29(b)			888		947,940
Pattern Energy Group, Inc., 5.88%, 02/01/24(b)			519		526,785

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Independent Power and Renewable Electricity Producers (continued)
Talen Energy Supply LLC:
6.50%, 06/01/25	USD		78	$	65,325
10.50%, 01/15/26(b)			72		71,820
7.25%, 05/15/27(b)			365		374,125
6.63%, 01/15/28(b)			280		278,250
					10,695,839
Insurance — 1.0%
Acrisure LLC, 8.13%, 02/15/24(b)			167		172,427
Alliant Holdings Intermediate LLC, 8.25%, 08/01/23(b)			1,946		1,994,066
AmWINS Group, Inc., 7.75%, 07/01/26(b)			206		213,210
Ardonagh Midco 3 plc, 8.63%, 07/15/23(b)			252		236,880
CNO Financial Group, Inc., 5.25%, 05/30/29 .			526		569,395
GTCR AP Finance, Inc., 8.00%, 05/15/27(b)			323		324,615
HUB International Ltd., 7.00%, 05/01/26(b)			1,366		1,384,783
					4,895,376
Interactive Media & Services — 0.0%(b)
Match Group, Inc., 5.63%, 02/15/29			34		35,870
Rackspace Hosting, Inc., 8.63%, 11/15/24			221		202,767
					238,637
Internet & Direct Marketing Retail — 0.1%(b)
Go Daddy Operating Co. LLC, 5.25%, 12/01/27			453		468,855
GrubHub Holdings, Inc., 5.50%, 07/01/27			207		212,459
					681,314
IT Services — 1.6%
Alliance Data Systems Corp., 5.88%, 11/01/21(b)			162		166,763
Banff Merger Sub, Inc., 9.75%, 09/01/26(b)			2,104		1,825,220
Booz Allen Hamilton, Inc., 5.13%, 05/01/25(b).			505		512,575
Fiserv, Inc.:
3.50%, 07/01/29			620		637,288
4.40%, 07/01/49			165		173,592
Gartner, Inc., 5.13%, 04/01/25(b)			594		610,632
Tempo Acquisition LLC, 6.75%, 06/01/25(b)			516		531,480
WEX, Inc., 4.75%, 02/01/23(b)			301		302,505
Zayo Group LLC:
6.00%, 04/01/23			690		705,525
6.38%, 05/15/25			115		117,294
5.75%, 01/15/27(b)			2,508		2,555,351
					8,138,225
Leisure Products — 0.2%
Mattel, Inc., 6.75%, 12/31/25(b)			1,026		1,055,497
Life Sciences Tools & Services — 1.1%(b)
Avantor, Inc.:
6.00%, 10/01/24			2,742		2,917,488
9.00%, 10/01/25			1,819		2,028,185
Charles River Laboratories International, Inc.,
5.50%, 04/01/26			466		490,372
					5,436,045
Machinery — 1.3%(b)
Amsted Industries, Inc., 5.63%, 07/01/27			234		243,945
Colfax Corp.:
6.00%, 02/15/24			669		707,467
6.38%, 02/15/26			659		706,778
Grinding Media, Inc., 7.38%, 12/15/23			403		385,873
Manitowoc Co., Inc. (The), 9.00%, 04/01/26			214		214,000
Mueller Water Products, Inc., 5.50%, 06/15/26			476		492,065
Navistar International Corp., 6.63%, 11/01/25			644		674,590
RBS Global, Inc., 4.88%, 12/15/25			815		825,187
SPX FLOW, Inc., 5.63%, 08/15/24			374		389,895
Stevens Holding Co., Inc., 6.13%, 10/01/26			211		222,341
Terex Corp., 5.63%, 02/01/25			661		670,915

Security		Par (000)		Value
Machinery (continued)
Titan Acquisition Ltd., 7.75%, 04/15/26	USD		1,045	$	940,500
Wabash National Corp., 5.50%, 10/01/25			386		365,735
					6,839,291
Media — 7.3%
Altice Financing SA(b):
6.63%, 02/15/23			1,073		1,099,825
7.50%, 05/15/26			843		847,299
Altice Luxembourg SA(b):
7.75%, 05/15/22			320		325,200
7.63%, 02/15/25			1,213		1,140,978
10.50%, 05/15/27			742		762,405
AMC Networks, Inc.:
4.75%, 12/15/22			222		224,789
5.00%, 04/01/24			19		19,546
4.75%, 08/01/25			903		912,030
Charter Communications Operating LLC, 4.91%, 07/23/25			10		10,856
Clear Channel International BV, 8.75%, 12/15/20(b)			947		968,308
Clear Channel Worldwide Holdings, Inc.:
Series A, 6.50%, 11/15/22			3,988		4,066,761
9.25%, 02/15/24(b)			3,361		3,646,685
CSC Holdings LLC:
5.13%, 12/15/21(b)			327		327,000
5.38%, 07/15/23(b)			1,248		1,282,320
5.25%, 06/01/24			904		939,030
7.75%, 07/15/25(b)			636		688,088
6.63%, 10/15/25(b)			390		417,300
10.88%, 10/15/25(b)			1,771		2,030,009
5.50%, 05/15/26(b)			966		1,013,044
5.38%, 02/01/28(b)			200		207,750
6.50%, 02/01/29(b)			1,676		1,828,935
Cumulus Media New Holdings, Inc., 6.75%, 07/01/26(b)			321		320,133
DISH DBS Corp.:
6.75%, 06/01/21			519		544,301
5.88%, 07/15/22			1,571		1,594,565
5.00%, 03/15/23			273		263,786
5.88%, 11/15/24			331		313,209
Entercom Media Corp.(b):
7.25%, 11/01/24			18		18,968
6.50%, 05/01/27			212		220,480
GCI LLC, 6.63%, 06/15/24(b)			228		238,898
Gray Television, Inc.(b):
5.13%, 10/15/24			37		37,694
7.00%, 05/15/27			515		558,775
iHeartCommunications, Inc., 6.38%, 05/01/26			256		271,194
MDC Partners, Inc., 6.50%, 05/01/24(b)			390		358,394
Meredith Corp., 6.88%, 02/01/26			265		281,199
Midcontinent Communications, 6.88%, 08/15/23(b)			392		406,700
Nexstar Escrow, Inc., 5.63%, 07/15/27(b)			318		325,553
Outfront Media Capital LLC:
5.88%, 03/15/25			195		201,581
5.00%, 08/15/27(b)			1,046		1,070,790
Radiate Holdco LLC(b):
6.88%, 02/15/23			90		90,000
6.63%, 02/15/25			185		178,988
Sirius XM Radio, Inc.(b):
4.63%, 07/15/24			391		400,103
5.38%, 04/15/25			37		38,156
5.38%, 07/15/26			19		19,689
5.00%, 08/01/27			1,225		1,246,315
5.50%, 07/01/29			576		590,515

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Media (continued)
TEGNA, Inc., 5.50%, 09/15/24(b)	USD		79	$	80,975
Telenet Finance Luxembourg Notes SARL, 5.50%, 03/01/28(b)			1,000		1,015,000
Univision Communications, Inc., 5.13%, 05/15/23(b)			456		445,740
UPCB Finance IV Ltd., 5.38%, 01/15/25(b)			202		207,618
Videotron Ltd., 5.13%, 04/15/27(b)			429		447,769
WMG Acquisition Corp., 5.50%, 04/15/26(b)			182		187,897
Ziggo Bond Co. BV(b):
5.88%, 01/15/25			956		965,962
6.00%, 01/15/27			415		416,037
Ziggo BV, 5.50%, 01/15/27(b)			825		839,198
					36,954,340
Metals & Mining — 3.0%
Alcoa Nederland Holding BV, 6.13%, 05/15/28(b)			200		209,000
Big River Steel LLC, 7.25%, 09/01/25(b)			412		432,827
Cleveland-Cliffs, Inc., 4.88%, 01/15/24(b)			261		264,915
Constellium NV(b):
5.75%, 05/15/24			1,958		2,006,950
6.63%, 03/01/25			1,343		1,396,720
5.88%, 02/15/26			728		748,020
Freeport-McMoRan, Inc.:
3.55%, 03/01/22			995		998,731
3.88%, 03/15/23			1,630		1,630,000
4.55%, 11/14/24			803		820,867
5.45%, 03/15/43			2,755		2,520,825
Kaiser Aluminum Corp., 5.88%, 05/15/24			173		179,920
Mineral Resources Ltd., 8.13%, 05/01/27(b)			428		445,655
Novelis Corp.(b):
6.25%, 08/15/24			1,613		1,691,166
5.88%, 09/30/26			855		865,687
Steel Dynamics, Inc.:
5.25%, 04/15/23			333		338,828
4.13%, 09/15/25			257		255,715
5.00%, 12/15/26			64		66,720
SunCoke Energy Partners LP,
7.50%, 06/15/25(b)			137		133,746
					15,006,292
Mortgage Real Estate Investment Trusts (REITs) — 0.1%
Starwood Property Trust, Inc., 5.00%, 12/15/21			255		262,013
Oil, Gas & Consumable Fuels — 9.0%
Aker BP ASA, 4.75%, 06/15/24(b)			338		348,377
Antero Midstream Partners LP, 5.38%, 09/15/24			200		198,750
Antero Resources Corp.:
5.13%, 12/01/22			62		59,520
5.63%, 06/01/23			191		184,353
Ascent Resources Utica Holdings LLC(b):
10.00%, 04/01/22			476		503,917
7.00%, 11/01/26			167		152,388
Berry Petroleum Co. LLC, 7.00%, 02/15/26(b)			161		156,170
Brazos Valley Longhorn LLC, 6.88%, 02/01/25			298		280,120
Bruin E&P Partners LLC, 8.88%, 08/01/23(b)			151		126,840
Callon Petroleum Co.:
6.13%, 10/01/24			403		407,030
6.38%, 07/01/26			384		387,840
Carrizo Oil & Gas, Inc.:
6.25%, 04/15/23			231		222,915
8.25%, 07/15/25			400		394,000
Centennial Resource Production LLC,
6.88%, 04/01/27(b)			228		230,280
Chaparral Energy, Inc., 8.75%, 07/15/23(b)			238		147,560

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Cheniere Corpus Christi Holdings LLC:
7.00%, 06/30/24	USD		1,034	$	1,189,203
5.88%, 03/31/25			936		1,042,470
5.13%, 06/30/27			1,186		1,288,293
Cheniere Energy Partners LP,
5.63%, 10/01/26(b)			782		825,010
Chesapeake Energy Corp.:
6.63%, 08/15/20			389		391,917
4.88%, 04/15/22			267		252,315
5.75%, 03/15/23			141		132,188
7.00%, 10/01/24			308		276,430
8.00%, 01/15/25			382		354,305
8.00%, 03/15/26(b)			272		246,840
8.00%, 06/15/27			541		476,756
CNX Resources Corp., 5.88%, 04/15/22			2,052		1,990,440
Comstock Resources, Inc., 9.75%, 08/15/26			283		217,202
CONSOL Energy, Inc., 11.00%, 11/15/25(b)			1,295		1,401,838
Covey Park Energy LLC, 7.50%, 05/15/25(b)			255		183,600
Crestwood Midstream Partners LP:
6.25%, 04/01/23			238		242,760
5.63%, 05/01/27(b)			385		384,038
CrownRock LP, 5.63%, 10/15/25(b)			1,653		1,657,133
DCP Midstream Operating LP:
5.38%, 07/15/25			246		259,223
5.13%, 05/15/29			422		433,605
6.45%, 11/03/36(b)			269		282,450
6.75%, 09/15/37(b)			706		758,950
Denbury Resources, Inc., 9.25%, 03/31/22(b)			720		675,000
Endeavor Energy Resources LP(b):
5.50%, 01/30/26			887		919,154
5.75%, 01/30/28			525		552,562
EnLink Midstream LLC, 5.38%, 06/01/29			121		124,025
EnLink Midstream Partners LP:
4.40%, 04/01/24			498		503,593
4.15%, 06/01/25			38		37,240
4.85%, 07/15/26			86		86,645
5.60%, 04/01/44			411		377,092
5.05%, 04/01/45			460		384,100
5.45%, 06/01/47			369		315,495
Extraction Oil & Gas, Inc.(b):
7.38%, 05/15/24			948		810,540
5.63%, 02/01/26			426		343,995
Genesis Energy LP:
6.00%, 05/15/23			130		129,025
5.63%, 06/15/24			129		124,162
6.50%, 10/01/25			127		124,143
6.25%, 05/15/26			202		194,930
Great Western Petroleum LLC,
9.00%, 09/30/21(b)			726		589,875
Gulfport Energy Corp.:
6.63%, 05/01/23			200		172,000
6.00%, 10/15/24			56		43,260
6.38%, 01/15/26			207		156,803
Hess Infrastructure Partners LP,
5.63%, 02/15/26(b)			332		341,545
Indigo Natural Resources LLC,
6.88%, 02/15/26(b)			423		379,642
Magnolia Oil & Gas Operating LLC,
6.00%, 08/01/26(b)			69		70,380
Matador Resources Co., 5.88%, 09/15/26			541		546,410
MEG Energy Corp.(b):
6.38%, 01/30/23			163		155,257
6.50%, 01/15/25			1,212		1,218,060

SCHEDULE OF INVESTMENTS 11

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Murphy Oil Corp.:
5.75%, 08/15/25	USD		281	$	291,228
7.05%, 05/01/29			24		26,100
5.63%, 12/01/42			260		232,700
NGPL PipeCo LLC(b):
4.88%, 08/15/27			921		975,109
7.77%, 12/15/37			661		839,470
Northern Oil and Gas, Inc., 8.50%, (8.50% Cash or 1.00% PIK), 05/15/23(f)			598		617,915
NuStar Logistics LP, 6.00%, 06/01/26			245		253,575
Oasis Petroleum, Inc.:
6.88%, 03/15/22			16		15,960
6.88%, 01/15/23			2		2,000
6.25%, 05/01/26(b)			100		96,750
Parkland Fuel Corp., 5.88%, 07/15/27(b)			338		343,391
Parsley Energy LLC(b):
6.25%, 06/01/24			120		124,800
5.38%, 01/15/25			926		949,150
5.25%, 08/15/25			395		400,925
PBF Holding Co. LLC, 7.25%, 06/15/25			301		315,297
PDC Energy, Inc.:
1.13%, 09/15/21(h)			32		29,970
6.13%, 09/15/24			31		31,000
5.75%, 05/15/26			241		236,782
QEP Resources, Inc.:
5.38%, 10/01/22			782		760,495
5.25%, 05/01/23			98		94,325
5.63%, 03/01/26			543		510,420
Range Resources Corp.:
5.88%, 07/01/22			40		39,600
5.00%, 08/15/22			167		158,441
Seven Generations Energy Ltd.(b):
6.88%, 06/30/23			31		31,426
5.38%, 09/30/25			137		131,863
SM Energy Co.:
6.13%, 11/15/22			460		456,550
5.00%, 01/15/24			180		165,150
5.63%, 06/01/25			88		80,080
6.75%, 09/15/26			114		106,875
Southwestern Energy Co.:
6.20%, 01/23/25			260		237,250
7.50%, 04/01/26			26		24,632
7.75%, 10/01/27			262		250,865
Sunoco LP:
4.88%, 01/15/23			411		419,734
5.50%, 02/15/26			168		174,930
6.00%, 04/15/27(b)			63		66,150
5.88%, 03/15/28			185		191,706
Tallgrass Energy Partners LP(b):
4.75%, 10/01/23			42		42,578
5.50%, 09/15/24			612		631,890
5.50%, 01/15/28			1,695		1,714,069
Targa Resources Partners LP:
5.13%, 02/01/25			213		219,922
5.88%, 04/15/26			513		543,780
5.38%, 02/01/27			251		259,785
6.50%, 07/15/27(b)			759		828,259
5.00%, 01/15/28			680		681,700
6.88%, 01/15/29(b)			1,249		1,384,754
TerraForm Power Operating LLC(b):
4.25%, 01/31/23			277		276,654
6.63%, 06/15/25(i)			75		78,750
5.00%, 01/31/28			639		641,396
Whiting Petroleum Corp., 6.63%, 01/15/26			122		117,654

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
WPX Energy, Inc.:
8.25%, 08/01/23	USD		420	$	478,800
5.25%, 09/15/24			220		225,775
5.75%, 06/01/26			213		221,254
					45,491,593
Paper & Forest Products — 0.1%
Mercer International, Inc.:
6.50%, 02/01/24			167		172,845
5.50%, 01/15/26			172		171,140
Norbord, Inc., 6.25%, 04/15/23(b)			226		238,712
					582,697
Personal Products — 0.1%(b)
Avon International Capital plc, 6.50%, 08/15/22			172		173,290
Coty, Inc., 6.50%, 04/15/26			156		151,905
					325,195
Pharmaceuticals — 2.5%
Bausch Health Americas, Inc.(b):
9.25%, 04/01/26			328		366,966
8.50%, 01/31/27			1,728		1,899,971
Bausch Health Cos., Inc.:
5.50%, 03/01/23(b)			471		474,768
4.50%, 05/15/23	EUR		643		740,587
5.88%, 05/15/23(b)	USD		291		294,381
7.00%, 03/15/24(b)			594		631,184
6.13%, 04/15/25(b)			89		90,889
5.50%, 11/01/25(b)			1,690		1,761,825
9.00%, 12/15/25(b)			1,030		1,150,819
5.75%, 08/15/27(b)			566		594,855
7.00%, 01/15/28(b)			791		819,674
7.25%, 05/30/29(b)			887		922,480
Catalent Pharma Solutions, Inc.(b):
4.88%, 01/15/26			662		671,102
5.00%, 07/15/27			406		413,105
Elanco Animal Health, Inc., 4.90%, 08/28/28(b)			438		489,165
Mallinckrodt International Finance SA, 5.75%, 08/01/22(b)			205		176,300
Par Pharmaceutical, Inc., 7.50%, 04/01/27(b)	.		1,383		1,358,798
					12,856,869
Professional Services — 0.7%(b)
Dun & Bradstreet Corp. (The), 6.88%, 08/15/26			1,368		1,444,950
Jaguar Holding Co. II, 6.38%, 08/01/23			2,256		2,334,960
					3,779,910
Real Estate Management & Development — 0.2%
Five Point Operating Co. LP, 7.88%, 11/15/25(b)			203		204,019
Greystar Real Estate Partners LLC, 5.75%, 12/01/25(b)			278		283,560
Howard Hughes Corp. (The), 5.38%, 03/15/25(b)			363		375,051
Newmark Group, Inc., 6.13%, 11/15/23			152		160,834
					1,023,464
Road & Rail — 0.5%
Algeco Global Finance plc:
6.50%, 02/15/23	EUR		200		237,301
8.00%, 02/15/23(b)	USD		566		572,368
Avis Budget Car Rental LLC, 5.75%, 07/15/27(b)			497		500,727
Herc Rentals, Inc., 7.50%, 06/01/22(b)			3		3,116
Hertz Corp. (The), 7.63%, 06/01/22(b)			762		791,527
Uber Technologies, Inc., 7.50%, 11/01/23(b)			442		468,520
					2,573,559
Semiconductors & Semiconductor Equipment — 0.3%
Advanced Micro Devices, Inc., 7.50%, 08/15/22			79		89,270
Entegris, Inc., 4.63%, 02/10/26(b)			251		252,883
Qorvo, Inc., 5.50%, 07/15/26			538		569,365

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Semiconductors & Semiconductor Equipment (continued)
Sensata Technologies UK Financing Co. plc, 6.25%, 02/15/26(b)	USD		400	$	425,000
Versum Materials, Inc., 5.50%, 09/30/24(b)			225		241,031
					1,577,549
Software — 4.4%
ACI Worldwide, Inc., 5.75%, 08/15/26(b)			1,071		1,116,839
CDK Global, Inc.:
4.88%, 06/01/27			1,141		1,180,068
5.25%, 05/15/29(b)			215		222,794
Change Healthcare Holdings LLC, 5.75%, 03/01/25(b)			875		888,125
Genesys Telecommunications Laboratories, Inc., 10.00%, 11/30/24(b)			1,929		2,095,376
Infor US, Inc., 6.50%, 05/15/22			3,946		4,015,450
Informatica LLC, 7.13%, 07/15/23(b)			1,233		1,254,787
Nuance Communications, Inc.:
6.00%, 07/01/24			73		75,555
5.63%, 12/15/26			588		613,166
PTC, Inc., 6.00%, 05/15/24			209		218,927
RP Crown Parent LLC, 7.38%, 10/15/24(b)			1,036		1,080,030
Solera LLC, 10.50%, 03/01/24(b)			3,619		3,913,044
Sophia LP, 9.00%, 09/30/23(b)			215		221,719
SS&C Technologies, Inc., 5.50%, 09/30/27(b)			2,882		2,990,075
Symantec Corp., 5.00%, 04/15/25(b)			666		682,752
TIBCO Software, Inc., 11.38%, 12/01/21(b)			1,528		1,623,500
Veritas US, Inc., 7.50%, 02/01/23(b)			200		187,000
					22,379,207
Specialty Retail — 1.2%
Asbury Automotive Group, Inc., 6.00%, 12/15/24			863		893,205
Carvana Co., 8.88%, 10/01/23(b)			68		68,697
eG Global Finance plc, 6.75%, 02/07/25(b)			620		615,164
Group 1 Automotive, Inc.:
5.00%, 06/01/22			124		125,550
5.25%, 12/15/23(b)			45		46,069
L Brands, Inc.:
6.88%, 11/01/35			654		581,641
6.75%, 07/01/36			119		102,340
Penske Automotive Group, Inc., 5.50%, 05/15/26			170		177,225
PetSmart, Inc., 5.88%, 06/01/25(b)			1,052		1,020,440
SRS Distribution, Inc., 8.25%, 07/01/26(b)			215		209,088
Staples, Inc.(b):
7.50%, 04/15/26			1,791		1,780,451
10.75%, 04/15/27			289		287,555
					5,907,425
Technology Hardware, Storage & Peripherals — 0.5%
Dell International LLC, 7.13%, 06/15/24(b)			1,129		1,191,917
Western Digital Corp., 4.75%, 02/15/26			929		911,395
Xerox Corp.:
4.80%, 03/01/35			549		475,571
6.75%, 12/15/39			31		30,881
					2,609,764
Textiles, Apparel & Luxury Goods — 0.0%
William Carter Co. (The), 5.63%, 03/15/27(b)			241		252,448
Thrifts & Mortgage Finance — 0.3%(b)
Ladder Capital Finance Holdings LLLP,
5.25%, 10/01/25			522		523,305
Nationstar Mortgage Holdings, Inc.:
8.13%, 07/15/23			510		520,200
9.13%, 07/15/26			477		484,155
					1,527,660

Security		Par (000)		Value
Trading Companies & Distributors — 1.4%
Beacon Roofing Supply, Inc., 4.88%, 11/01/25(b)	USD		27	$	26,730
Flexi-Van Leasing, Inc., 10.00%, 02/15/23(b)			247		229,093
Fortress Transportation & Infrastructure Investors LLC(b):
6.75%, 03/15/22			113		117,379
6.50%, 10/01/25			114		117,420
HD Supply, Inc., 5.38%, 10/15/26(b)			2,677		2,824,235
Herc Holdings, Inc., 5.50%, 07/15/27(b)			874		879,462
United Rentals North America, Inc.:
5.50%, 07/15/25			603		627,874
4.63%, 10/15/25			585		594,506
5.88%, 09/15/26			379		403,635
6.50%, 12/15/26			187		202,427
5.50%, 05/15/27			649		683,072
5.25%, 01/15/30			373		383,258
					7,089,091
Wireless Telecommunication Services — 2.0%
Digicel Group Two Ltd., 8.25%, 09/30/22(b)			397		84,983
Digicel International Finance Ltd., 8.75%, 05/25/24(b)			410		387,450
Digicel Ltd., 6.00%, 04/15/21(b)			338		252,655
Gogo Intermediate Holdings LLC, 9.88%, 05/01/24(b)			353		363,149
Hughes Satellite Systems Corp., 5.25%, 08/01/26			248		254,820
Sprint Corp.:
7.88%, 09/15/23			993		1,078,646
7.13%, 06/15/24			2,902		3,076,991
7.63%, 02/15/25			836		890,340
7.63%, 03/01/26			1,121		1,194,986
T-Mobile USA, Inc.:
4.00%, 04/15/22			239		244,378
6.38%, 03/01/25			41		42,579
6.50%, 01/15/26			441		476,747
4.50%, 02/01/26			543		555,896
4.75%, 02/01/28			818		841,599
Xplornet Communications, Inc., 9.63%, (9.63%
Cash or 10.63% PIK), 06/01/22(b)(f)			205		209,466
					9,954,685
Total Corporate Bonds — 82.9%     (Cost: $412,777,662)				420,101,438
Floating Rate Loan Interests — 8.3%(j)
Aerospace & Defense — 0.1%
Atlantic Aviation FBO, Inc., Term Loan
B, (LIBOR USD 1 Month + 3.75%), 6.16%, 11/30/25(g)			80		80,098
Sequa Mezzanine Holdings LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 7.56%, 11/28/21			209		203,870
					283,968
Auto Components — 0.2%
Panther BF Aggregator 2 LP, Term Loan B, 03/18/26(k)			974		966,237
Capital Markets — 0.2%
Jefferies Finance LLC, Term Loan, 06/03/26(k)			293		292,121
Travelport Finance (Luxembourg) SA, 1st Lien Term Loan, 7.54%, 03/18/26			797		748,005
					1,040,126

SCHEDULEOF INVESTMENTS 13

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Chemicals — 0.4%
Alpha 3 BV, Term Loan, 01/31/24(k)	USD		854	$	833,879
Ascend Performance Materials Operations LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 5.25%), 7.65%, 08/12/22			515		514,286
Invictus Co., Term Loan B26, (LIBOR USD 3 Month + 6.75%), 9.27%, 03/30/26			74		72,275
Momentive Performance Materials, Inc., 1st Lien Term Loan B, 05/15/24(k)			192		189,674
Starfruit Finco BV, Term Loan, 10/01/25(k)			257		252,754
					1,862,868
Commercial Services & Supplies — 0.5%
Brand Energy & Infrastructure Services, Inc., Term Loan, 6.58% - 6.84%, 06/21/24			1,882		1,816,641
GFL Environmental, Inc., Term Loan B, 05/30/25(k)			646		635,360
					2,452,001
Construction & Engineering — 0.1%
SRS Distribution, Inc., Term Loan B, 05/23/25(k)			476		455,770
Containers & Packaging — 0.1%
BWAY Holding Co., Term Loan, (LIBOR USD 3 Month + 3.25%), 5.85%, 04/03/24			255		246,304
Charter NEX US, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.50%), 5.90%, 05/16/24			130		129,415
					375,719
Diversified Consumer Services — 0.0%
TierPoint LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 6.15%, 05/06/24			196		180,437
Diversified Financial Services — 0.0%
LTI Holdings, Inc., Term Loan, 5.90%, 09/06/25			74		69,940
Diversified Telecommunication Services — 0.2%
Altice France SA, Term Loan, (LIBOR USD 1
Month + 4.00%), 6.39%, 08/14/26			292		285,167
CenturyLink, Inc., Term Loan, 5.15%, 01/31/25			816		795,948
					1,081,115
Energy Equipment & Services — 0.7%
McDermott International, Inc., Term Loan, (LIBOR USD 1 Month + 5.00%), 7.40%, 05/12/25			2,419		2,377,285
Pioneer Energy Services Corp., Term Loan, (LIBOR USD 1 Month + 7.75%), 10.15%, 11/08/22			1,007		946,580
Weatherford International Ltd., Term Loan, (LIBOR USD 1 Month + 2.30%), 3.86%, 07/13/20			272		271,764
					3,595,629
Entertainment — 0.0%
Renaissance Learning, Inc., Term Loan, (LIBOR USD 3 Month + 3.25%), 5.73%, 05/24/25			97		94,164
Food Products — 0.0%
Chobani LLC, Term Loan, (LIBOR USD 1 Month + 3.50%), 5.90%, 10/10/23			68		67,206
Gas Utilities — 0.0%
Midcoast Operating LP, Term Loan, 06/30/25(k)			227		227,391

Security		Par (000)		Value
Health Care Equipment & Supplies — 0.5%
Immucor, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 7.33%, 06/15/21	USD		1,241	$	1,236,082
Sterigenics-Nordion Holdings LLC, Term Loan, 5.40%, 05/15/22			1,112		1,095,662
					2,331,744
Health Care Providers & Services — 0.6%
AHP Health Partners, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 6.90%, 06/30/25			232		232,239
Concentra, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.50%), 8.96%, 07/25/23(g)			328		329,638
Envision Healthcare Corp., Term Loan, (LIBOR USD 1 Month + 3.75%), 6.19%, 10/10/25			1,342		1,182,641
Gentiva Health Services, Inc., Term Loan, (LIBOR USD 3 Month + 6.00%), 11.50%, 07/02/26			91		92,010
Gentiva Health Services, Inc., Term Loan U, (LIBOR USD 1 Month + 3.75%), 6.19%, 07/02/25			410		409,789
HC Group Holdings III, Inc., 1st Lien Term Loan B, 04/07/22(g)(k)			92		91,655
Quorum Health Corp., 1st Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 9.15%, 04/29/22			325		320,550
Team Health Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 5.15%, 02/06/24			176		155,586
					2,814,108
Health Care Technology — 0.3%
Athenahealth, Inc., Term Loan B, 02/05/26(k)			1,375		1,370,520
Hotels, Restaurants & Leisure — 0.2%
Stars Group Holdings BV, Term Loan, 07/10/25(k)			988		987,835
Industrial Conglomerates — 0.2%
PSAV Holdings LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.58% - 5.69%, 02/21/25			112		108,972
Vertiv Co., Term Loan B, (LIBOR USD 3 Month + 4.00%), 6.33%, 11/30/23			903		858,204
					967,176
Insurance — 0.3%
Alliant Holdings Intermediate LLC, Term Loan, (LIBOR USD 1 Month + 3.00%), 5.40%, 05/09/25			81		78,754
Asurion LLC, 2nd Lien Term Loan B2, (LIBOR USD 1 Month + 6.50%), 8.90%, 08/04/25			681		689,941
Sedgwick, 1st Lien Term Loan, 12/31/25(k)			826		813,578
					1,582,273
IT Services — 0.6%
CCC Information Services, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 9.15%, 04/28/25			40		40,150
CCC Information Services, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 5.16%, 04/29/24			130		127,889
Mitchell International, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.65%, 11/29/24			203		193,427
Mitchell International, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 9.65%, 12/01/25			123		118,281
Peak 10 Holding Corp., 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 9.83%, 08/01/25			83		68,579

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
IT Services (continued)
Peak 10 Holding Corp., Term Loan, (LIBOR USD 3 Month + 3.50%), 5.83%, 08/01/24	USD		192	$	175,663
SS&C Technologies Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.65%, 04/16/25			266		264,486
SS&C Technologies, Inc., 1st Lien Term Loan B5, 04/16/25(k)			46		46,244
Verscend Holding Corp., Term Loan B, 6.90%, 08/27/25			2,087		2,086,078
					3,120,797
Life Sciences Tools & Services — 0.0%
Albany Molecular Research, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.65%, 08/30/24			123		120,433
Machinery — 0.2%
Titan Acquisition Ltd., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.40%, 03/28/25			1,187		1,132,161
Media — 0.6%
Ascend Learning LLC, Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.40%, 07/12/24			76		74,447
Intelsat Jackson Holdings SA, Term Loan:
(LIBOR USD 1 Month + 3.75%), 6.15% , 11/27/23			117		115,585
(LIBOR USD 6 Month + 6.63%), 6.63% , 01/02/24			2,255		2,262,308
(LIBOR USD 1 Month + 4.50%), 6.90% , 01/02/24			388		389,061
Xplornet Communications, Inc., Term Loan,
(LIBOR USD 3 Month + 4.00%), 6.33%, 09/09/21(g)			257		256,574
					3,097,975
Multiline Retail — 0.0%
Neiman Marcus Group Ltd. LLC, Term Loan, (LIBOR USD 6 Month + 6.00%),     8.42%, 10/25/23			265		226,748
Oil, Gas & Consumable Fuels — 0.2% BCP
Raptor II LLC, Term Loan, (LIBOR USD 1 Month + 4.75%), 7.15%, 10/22/25			132		125,291
California Resources Corp., Term Loan, (LIBOR USD 1 Month + 10.38%), 12.78%, 12/31/21			532		539,154
CNX Resources Corp., Term Loan, (LIBOR USD 1 Month + 4.50%), 6.91%, 11/28/22			322		320,984
Gavilan Resources LLC, 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.00%),     8.40%, 03/01/24			193		98,629
					1,084,058
Pharmaceuticals — 0.2%
Bausch Health Cos., Inc., Term Loan, 5.41%, 06/02/25			452		451,925
Endo Pharmaceuticals, Inc., Term Loan B, (LIBOR USD 1 Month + 4.25%), 6.69%, 04/29/24			435		407,302
					859,227
Professional Services — 0.1%
Dun & Bradstreet Corp. (The), 1st Lien Term Loan B, 7.40%, 02/06/26			438		437,864
Road & Rail — 0.1%
Uber Technologies, Inc., Term Loan, (LIBOR USD 1 Month + 4.00%), 6.41%, 03/14/25			601		600,678

Security		Par (000)		Value
Software — 1.2%
Financial & Risk US Holdings, Inc., Term Loan, 6.15%, 10/01/25	USD		4,951	$	4,797,354
Infor US, Inc., Term Loan, 5.08%, 02/01/22			207		206,658
Kronos, Inc., 2nd Lien Term Loan B, (LIBOR USD 3 Month + 8.25%), 10.83%, 11/01/24			569		587,140
SS&C Technologies Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%),     4.65%, 04/16/25			170		168,781
TIBCO Software, Inc., Term Loan, 12/04/20(k)			301		301,283
Ultimate Software Group, Inc. (The), 1st Lien Term Loan, 05/04/26(k)			136		136,520
					6,197,736
Wireless Telecommunication Services — 0.5%
Ligado Networks LLC, Term Loan, (LIBOR USD 3 Month + 12.50%), 14.98%, 12/07/20			660		174,270
New Lightsquared LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 0.00%),     0.00%, 12/07/20(f)			2,554		1,883,317
Sprint Communications, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.44%, 02/02/24			354		350,366
					2,407,953
Total Floating Rate Loan Interests — 8.3%     (Cost: $43,775,598)				42,091,857
Preferred Securities — 1.8%
Capital Trusts — 1.6%(d)(j)
Banks — 1.6%
Bank of America Corp.:
Series X, 6.25%			558		607,924
Series Z, 6.50%			584		643,860
Series AA, 6.10%			1,605		1,733,400
Series DD, 6.30%			240		267,912
CIT Group, Inc., Series A, 5.80%			295		296,844
JPMorgan Chase & Co.:
Series I, 6.05%			290		289,843
Series V, 5.00%			640		637,952
Series Q, 5.15%			190		192,613
Series S, 6.75%			140		154,732
Series U, 6.13%			99		105,692
Series X, 6.10%			1,356		1,460,846
Wells Fargo & Co., Series U, 5.87%			1,376		1,495,767
					7,887,385
Capital Markets — 0.0%
Goldman Sachs Group, Inc. (The), Series P, 5.00%			207		198,720
Morgan Stanley, Series H, 5.45%			162		161,595
					360,315
Total Capital Trusts — 1.6%     (Cost: $8,044,386)				8,247,700

SCHEDULE OF INVESTMENTS 15

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Trust Preferreds — 0.2%
Banks — 0.2%
GMAC Capital Trust I, Series 2, 8.30%, 02/15/40(j)		32,966	$	861,402
Total Trust Preferreds — 0.2% (Cost: $862,505)				861,402
Total Preferred Securities — 1.8% (Cost: $8,906,891)				9,109,102
Total Long-Term Investments — 94.0% (Cost: $470,862,211)				476,016,528

Security	Shares		Value
Short-Term Securities — 5.0%(l)
BlackRock Liquidity Funds,T-Fund, Institutional Class,     2.26%*		25,187,853	$	25,187,853
JPMorgan US Treasury Plus Money Market Fund, Agency Class,     2.17%		346,089		346,089
Total Short-Term Securities — 5.0% (Cost: $25,533,942)				25,533,942
Total Investments — 99.0% (Cost: $496,396,153)				501,550,470
Other Assets Less Liabilities — 1.0%				5,037,226
Net Assets — 100.0%			$	506,587,696

^(a)  Non-income producing security.

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

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

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

^(f)  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.

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

^(h)  Convertible security.

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

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

^(k)  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.

^(l)  Annualized7-day yield as of period end.

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

Affiliate	Shares Held at 12/31/18		Net Activity		Shares Held at 06/30/19		Value at 06/30/19		Income		Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		21,772,561		3,415,292		25,187,853	$	25,187,853	$	171,538	$	—	$	—

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

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industrysub-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 industrysub-classifications for reporting ease.

16 2019BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
GBP	93,000	USD	117,954	State Street Bank and Trust Co.		07/03/19	$	158
USD	6,499,421	EUR	5,696,000	UBS AG		08/06/19		3,271
								3,429
EUR	5,696,000	USD	6,481,478	UBS AG		07/03/19		(4,008	)
USD	6,394,094	EUR	5,722,000	HSBC Bank plc		07/03/19		(112,943	)
USD	117,120	GBP	93,000	JPMorgan Chase Bank NA		07/03/19		(992	)
USD	118,149	GBP	93,000	State Street Bank and Trust Co.		08/06/19		(166	)
								(118,109	)
Net Unrealized Depreciation							$	(114,680	)

Centrally Cleared Credit Default Swaps - Sell Protection

Reference Obligation/Index

Financing Rate Received by the Fund

Payment Frequency

Termination Date

Credit Rating (a)

Notional Amount (000)(b)

Value

Upfront Premium Paid (Received)

Unrealized Appreciation (Depreciation)

CDX.NA.HY.32.V1

5.00%

Quarterly

06/20/24

NR

USD  14,140

$

1,095,253

$

1,073,015

$

22,238

^(a)  Using S&P Global Rating’s rating of the issuer or the underlying securities of the index, as applicable.

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

OTC Credit Default Swaps — 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)
CenturyLink, Inc.	1.00%	Quarterly		Barclays Bank plc		12/20/23		B+		USD  312	$	(20,047	)	$	(21,426	)	$	1,379
Chesapeake Energy Corp.	5.00%	Quarterly		Barclays Bank plc		12/20/23		B+		USD  116		(11,495	)		199			(11,694	)
Chesapeake Energy Corp.	5.00%	Quarterly		Barclays Bank plc		12/20/23		B+		USD  208		(20,611	)		1,746			(22,357	)
CenturyLink, Inc.	1.00%	Quarterly		Barclays Bank plc		06/20/25		B+		USD  567		(69,578	)		(89,920	)		20,342
											$	(121,731	)	$	(109,401	)	$	(12,330	)

^(a)  Using S&P Global Rating’s rating of the issuer or the underlying securities of the index, as applicable.

^(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

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps(a)	$	1,073,015	$	—		$	22,238	$	—
OTC Swaps		1,945		(111,346	)		21,721		(34,051	)

^(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.

SCHEDULE OF INVESTMENTS 17

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts	$	—	$	—	$	—	$	3,429	$	—	$	—	$	3,429
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		22,238		—		—		—		—		22,238
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		23,666		—		—		—		—		23,666
	$	—	$	45,904	$	—	$	3,429	$	—	$	—	$	49,333
Liabilities — Derivative Financial Instruments
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		118,109		—		—		118,109
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		145,397		—		—		—		—		145,397
	$	—	$	145,397	$	—	$	118,109	$	—	$	—	$	263,506

^(a)  Net cumulative unrealized appreciation (depreciation) on 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 six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	(392,985	)	$	—		$	58,897		$	—	$	(334,088	)
Forward foreign currency exchange contracts		—		—		—			229,884			—			—		229,884
Swaps		—		84,747		—			—			—			—		84,747
	$	—	$	84,747	$	(392,985	)	$	229,884		$	58,897		$	—	$	(19,457	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—			—			(137,851	)		—		(137,851	)
Forward foreign currency exchange contracts		—		—		—			(52,186	)		—			—		(52,186	)
Swaps		—		186,204		—			—			—			—		186,204
	$	—	$	186,204	$	—		$	(52,186	)	$	(137,851	)	$	—	$	(3,833	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	1,844,570
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		13,315,158
Average amounts sold — in USD		6,604,936
Credit default swaps:
Average notional value — sell protection		8,273,000

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

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Forward foreign currency exchange contracts	$	3,429		$	118,109
Swaps — Centrally cleared		25,434			—
Swaps — OTC(a)		23,666			145,397
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	52,529		$	263,506
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(25,434	)		—
Total derivative assets and liabilities subject to an MNA	$	27,095		$	263,506

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

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset(a)			Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets
Barclays Bank plc	$	23,666	$	(23,666	)	$	—	$	—	$	—
State Street Bank and Trust Co.		158		(158	)		—		—		—
UBS AG		3,271		(3,271	)		—		—		—
	$	27,095	$	(27,095	)	$	—	$	—	$	—

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(b)
Barclays Bank plc	$	145,397	$	(23,666	)	$	—	$	—	$	121,731
HSBC Bank plc		112,943		—			—		—		112,943
JPMorgan Chase Bank NA		992		—			—		—		992
State Street Bank and Trust Co.		166		(158	)		—		—		8
UBS AG		4,008		(3,271	)		—		—		737
	$	263,506	$	(27,095	)	$	—	$	—	$	236,411

^(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 payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks(a)	$	4,714,131	$	—	$	—	$	4,714,131
Corporate Bonds:
Aerospace & Defense		—		21,107,686		—		21,107,686
Air Freight & Logistics		—		30,921		—		30,921
Auto Components		—		6,925,052		—		6,925,052
Automobiles		—		258,863		—		258,863
Banks		—		3,231,293		—		3,231,293
Building Products		—		2,847,826		—		2,847,826
Capital Markets		—		690,991		—		690,991

SCHEDULE OF INVESTMENTS 19

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund

	Level 1		Level 2		Level 3			Total
Chemicals	$	—	$	9,615,649	$	—	��	$	9,615,649
Commercial Services & Supplies		—		10,957,112		—			10,957,112
Communications Equipment		—		4,188,623		—			4,188,623
Construction & Engineering		—		528,477		—			528,477
Consumer Finance		—		9,148,759		—			9,148,759
Containers & Packaging		—		11,514,124		—			11,514,124
Distributors		—		2,299,052		—			2,299,052
Diversified Consumer Services		—		3,441,991		—			3,441,991
Diversified Financial Services		—		5,126,057		—			5,126,057
Diversified Telecommunication Services		—		26,282,454		—			26,282,454
Electric Utilities		—		2,646,646		—			2,646,646
Electrical Equipment		—		1,605,493		—			1,605,493
Electronic Equipment, Instruments & Components		—		437,880		—			437,880
Energy Equipment & Services		—		9,722,662		—			9,722,662
Entertainment		—		3,764,013		—			3,764,013
Equity Real Estate Investment Trusts (REITs)		—		10,543,894		—			10,543,894
Food & Staples Retailing		—		248,525		—			248,525
Food Products		—		6,067,451		—			6,067,451
Gas Utilities		—		677,106		—			677,106
Health Care Equipment & Supplies		—		4,266,695		—			4,266,695
Health Care Providers & Services		—		24,198,703		—			24,198,703
Health Care Technology		—		1,452,810		—			1,452,810
Hotels, Restaurants & Leisure		—		23,229,320		—			23,229,320
Household Durables		—		4,340,733		—			4,340,733
Household Products		—		570,592		—			570,592
Independent Power and Renewable Electricity Producers		—		10,695,839		—			10,695,839
Insurance		—		4,895,376		—			4,895,376
Interactive Media & Services		—		238,637		—			238,637
Internet & Direct Marketing Retail		—		681,314		—			681,314
IT Services		—		8,138,225		—			8,138,225
Leisure Products		—		1,055,497		—			1,055,497
Life Sciences Tools & Services		—		5,436,045		—			5,436,045
Machinery		—		6,839,291		—			6,839,291
Media		—		36,954,340		—			36,954,340
Metals & Mining		—		15,006,292		—			15,006,292
Mortgage Real Estate Investment Trusts (REITs)		—		262,013		—			262,013
Oil, Gas & Consumable Fuels		—		45,491,593		—			45,491,593
Paper & Forest Products		—		582,697		—			582,697
Personal Products		—		325,195		—			325,195
Pharmaceuticals		—		12,856,869		—			12,856,869
Professional Services		—		3,779,910		—			3,779,910
Real Estate Management & Development		—		1,023,464		—			1,023,464
Road & Rail		—		2,573,559		—			2,573,559
Semiconductors & Semiconductor Equipment		—		1,577,549		—			1,577,549
Software		—		22,379,207		—			22,379,207
Specialty Retail		—		5,907,425		—			5,907,425
Technology Hardware, Storage & Peripherals		—		2,609,764		—			2,609,764
Textiles, Apparel & Luxury Goods		—		252,448		—			252,448
Thrifts & Mortgage Finance		—		1,527,660		—			1,527,660
Trading Companies & Distributors		—		7,089,091		—			7,089,091
Wireless Telecommunication Services		—		9,954,685		—			9,954,685
Floating Rate Loan Interests:
Aerospace & Defense		—		203,870		80,098			283,968
Auto Components		—		966,237		—			966,237
Capital Markets		—		1,040,126		—			1,040,126
Chemicals		—		1,862,868		—			1,862,868
Commercial Services & Supplies		—		2,452,001		—			2,452,001
Construction & Engineering		—		455,770		—			455,770
Containers & Packaging		—		375,719		—			375,719
Diversified Consumer Services		—		180,437		—			180,437
Diversified Financial Services		—		69,940		—			69,940
Diversified Telecommunication Services		—		1,081,115		—			1,081,115
Energy Equipment & Services		—		3,595,629		—			3,595,629
Entertainment		—		94,164		—			94,164
Food Products		—		67,206		—			67,206
Gas Utilities		—		227,391		—			227,391

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock High Yield V.I. Fund

	Level 1		Level 2			Level 3		Total
Health Care Equipment & Supplies	$	—	$	2,331,744		$	—	$	2,331,744
Health Care Providers & Services		—		2,392,815			421,293		2,814,108
Health Care Technology		—		1,370,520			—		1,370,520
Hotels, Restaurants & Leisure		—		987,835			—		987,835
Industrial Conglomerates		—		967,176			—		967,176
Insurance		—		1,582,273			—		1,582,273
IT Services		—		3,120,797			—		3,120,797
Life Sciences Tools & Services		—		120,433			—		120,433
Machinery		—		1,132,161			—		1,132,161
Media		—		2,841,401			256,574		3,097,975
Multiline Retail		—		226,748			—		226,748
Oil, Gas & Consumable Fuels		—		1,084,058			—		1,084,058
Pharmaceuticals		—		859,227			—		859,227
Professional Services		—		437,864			—		437,864
Road & Rail		—		600,678			—		600,678
Software		—		6,197,736			—		6,197,736
Wireless Telecommunication Services		—		2,407,953			—		2,407,953
Preferred Securities:
Banks		861,402		7,887,385			—		8,748,787
Capital Markets		—		360,315			—		360,315
Short-Term Securities		25,533,942		—			—		25,533,942
	$	31,109,475	$	469,683,030		$	757,965	$	501,550,470
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—	$	43,959		$	—	$	43,959
Foreign currency exchange contracts		—		3,429			—		3,429
Liabilities:
Credit contracts		—		(34,051	)		—		(34,051	)
Foreign currency exchange contracts		—		(118,109	)		—		(118,109	)
	$	—	$	(104,772	)	$	—	$	(104,772	)

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

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

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

	Floating Rate Loan Interests
Investments:
Assets:
Opening balance, as of December 31, 2018	$	6,063,675
Transfers into level 3		324,720
Transfers out of level 3		(4,244,643	)
Accrued discounts/premiums		406
Net realized loss		(30,765	)
Net change in unrealized appreciation(a)(b)		105,173
Purchases		83,513
Sales		(1,544,114	)
Closing balance, as of June 30, 2019	$	757,965
Net change in unrealized appreciation on investments still held at June 30, 2019(b)	$	24,587

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

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

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

See notes to financial statements.

SCHEDULE OF INVESTMENTS 21

Statement of Assets and Liabilities   (unaudited)

June 30, 2019

	BlackRock High Yield V.I. Fund
ASSETS
Investments at value — unaffiliated (cost — $471,208,300)	$	476,362,617
Investments at value — affiliated (cost — $25,187,853)		25,187,853
Cash		139,720
Cash pledge for centrally cleared swaps		787,000
Foreign currency at value (cost — $31,525)		31,526
Receivables:
Investments sold		8,116,432
Capital shares sold		519,009
Dividends — affiliated		32,295
Dividends — unaffiliated		65
Interest — unaffiliated		7,117,029
Variation margin on centrally cleared swaps		25,434
Swap premiums paid		1,945
Unrealized appreciation on:
Forward foreign currency exchange contracts		3,429
OTC swaps		21,721
Prepaid expenses		6,179
Total assets		518,352,254
LIABILITIES
Payables:
Investments purchased		8,886,488
Capital shares redeemed		25,876
Distribution fees		63,171
Income dividend distributions		1,971,757
Investment advisory fees		188,305
Directors’ and Officer’s fees		6,546
Other affiliates		945
Other accrued expenses		357,964
Swap premiums received		111,346
Unrealized depreciation on:
Forward foreign currency exchange contracts		118,109
OTC swaps		34,051
Total liabilities		11,764,558
NET ASSETS	$	506,587,696
NET ASSETS CONSIST OF
Paid-in capital	$	513,957,014
Accumulated loss		(7,369,318	)
NET ASSETS	$	506,587,696
NET ASSET VALUE
Class I— Based on net assets of $170,671,750 and 23,441,070 shares outstanding, 200 million shares authorized, $0.10 par value	$	7.28
Class III— Based on net assets of $335,915,946 and 46,163,514 shares outstanding, 100 million shares authorized, $0.10 par value	$	7.28

See notes to financial statements.

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Operations   (unaudited)

Six Months Ended June 30, 2019

	BlackRock High Yield V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	171,538
Dividends — unaffiliated		51,209
Interest — unaffiliated		14,343,918
Total investment income		14,566,665
EXPENSES
Investment advisory		1,149,593
Distribution — class specific		396,164
Transfer agent — class specific		393,951
Accounting services		75,516
Professional		42,201
Custodian		19,354
Printing		17,803
Directors and Officer		5,696
Transfer agent		2,587
Miscellaneous		14,723
Total expenses		2,117,588
Less:
Fees waived and/or reimbursed by the Manager		(5,320	)
Transfer agent fees waived and/or reimbursed — class specific		(262,898	)
Total expenses after fees waived and/or reimbursed		1,849,370
Net investment income		12,717,295
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(2,364,943	)
Forward foreign currency exchange contracts		229,884
Foreign currency transactions		(5,028	)
Futures contracts		(334,088	)
Swaps		84,747
		(2,389,428	)
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		34,226,609
Forward foreign currency exchange contracts		(52,186	)
Foreign currency translations		35,751
Futures contracts		(137,851	)
Swaps		186,204
Unfunded floating rate loan interests		1,185
		34,259,712
Net realized and unrealized gain		31,870,284
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	44,587,579

See notes to financial statements.

FINANCIAL STATEMENTS 23

Statements of Changes in Net Assets

	BlackRock High Yield V.I. Fund
	Six Months Ended
	06/30/19			Year Ended
	(unaudited)			12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	12,717,295		$	24,175,311
Net realized loss		(2,389,428	)		(3,228,636	)
Net change in unrealized appreciation (depreciation)		34,259,712			(34,525,623	)
Net increase (decrease) in net assets resulting from operations		44,587,579			(13,578,948	)
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I		(4,643,789	)		(10,593,725	)
Class III		(8,156,980	)		(14,484,449	)
Decrease in net assets resulting from distributions to shareholders		(12,800,769	)		(25,078,174	)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		45,194,190			22,839,455
NET ASSETS
Total increase (decrease) in net assets		76,981,000			(15,817,667	)
Beginning of period		429,606,696			445,424,363
End of period	$	506,587,696		$	429,606,696

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

See notes to financial statements.

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  

(For a share outstanding throughout each period)

	BlackRock High Yield V.I. Fund
	Class I
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	6.80		$	7.39		$	7.24		$	6.77		$	7.44		$	7.67
Net investment income(a)		0.19			0.38			0.38			0.37			0.36			0.40
Net realized and unrealized gain (loss)		0.48			(0.57	)		0.15			0.48			(0.61	)		(0.18	)
Net increase (decrease) from investment operations		0.67			(0.19	)		0.53			0.85			(0.25	)		0.22
Distributions from net investment income(b)		(0.19	)		(0.40	)		(0.38	)		(0.38	)		(0.42	)		(0.45	)
Net asset value, end of period	$	7.28		$	6.80		$	7.39		$	7.24		$	6.77		$	7.44
Total Return(c)
Based on net asset value		9.94	%(d)		(2.79	)%		7.48	%		12.92	%		(3.60	)%		2.89	%
Ratios to Average Net Assets(e)
Total expenses		0.71	%(f)		0.77	%		0.78	%		0.80	%		0.84	%		0.87	%
Total expenses after fees waived and/or reimbursed		0.60	%(f)		0.63	%		0.67	%		0.68	%		0.70	%		0.73	%
Net investment income		5.32	%(f)		5.30	%		5.13	%		5.29	%		4.86	%		5.23	%
Supplemental Data
Net assets, end of period (000)	$	170,672		$	185,736		$	201,945		$	152,835		$	127,742		$	139,729
Portfolio turnover rate		49	%		79	%		75	%		89	%		73	%		87	%

^(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 insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)  Aggregate total return.

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

	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015		2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		0.01	%		0.01%		—	%

^(f) Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 25

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield V.I. Fund
	Class III
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	6.80		$	7.38		$	7.24		$	6.76		$	7.43		$	7.67
Net investment income(a)		0.18			0.36			0.36			0.36			0.34			0.38
Net realized and unrealized gain (loss)		0.48			(0.56	)		0.14			0.48			(0.61	)		(0.18	)
Net increase (decrease) from investment operations		0.66			(0.20	)		0.50			0.84			(0.27	)		0.20
Distributions from net investment income(b)		(0.18	)		(0.38	)		(0.36	)		(0.36	)		(0.40	)		(0.44	)
Net asset value, end of period	$	7.28		$	6.80		$	7.38		$	7.24		$	6.76		$	7.43
Total Return(c)
Based on net asset value		9.81	%(d)		(2.89	)%		7.08	%		12.82	%		(3.85	)%		2.51	%
Ratios to Average Net Assets(e)
Total expenses		0.95	%(f)		1.02	%		1.03	%		1.00	%		1.06	%		1.07	%
Total expenses after fees waived and/or reimbursed		0.84	%(f)		0.87	%		0.92	%		0.92	%		0.94	%		0.98	%
Net investment income		5.13	%(f)		5.05	%		4.87	%		5.05	%		4.63	%		4.86	%
Supplemental Data
Net assets, end of period (000)	$	335,916		$	243,871		$	243,479		$	190,149		$	95,139		$	51,524
Portfolio turnover rate		49	%		79	%		75	%		89	%		73	%		87	%

^(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 insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)  Aggregate total return.

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

	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		—	%

^(f) Annualized.

See notes to financial statements.

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds II, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 3 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock High Yield V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have identical voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

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

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 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 on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Fund is informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: 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 portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the 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.

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

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on theex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

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

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

Recent Accounting Standards: The Fund has adopted Financial Accounting Standards Board Accounting Standards Update2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Fund has changed the amortization period for the premium on certain purchased callable debt securities withnon-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Fund applied the amendments on a modified retrospective basis beginning with the fiscal period ended June 30, 2019. The cost basis of securities at December 31, 2018 has been adjusted to $460,695,656. This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value (“NAV”) of the Fund.

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.

NOTESTO FINANCIAL STATEMENTS 27

Notes to Financial Statements  (unaudited) (continued)

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

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) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end).U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Directors of the Company (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

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

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

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

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

• Investments inopen-end U.S. mutual funds are valued at NAV each business day.

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

• Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

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

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

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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

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

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

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by 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 investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

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

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

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

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

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

NOTESTO FINANCIAL STATEMENTS 29

Notes to Financial Statements  (unaudited) (continued)

Non-agency mortgage-backed securities are securities issued bynon-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.

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

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

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

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

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

5. DERIVATIVE FINANCIAL INSTRUMENTS

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

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

Futures contracts are 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, is 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)

30 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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, foreign currency exchange rates or underlying assets.

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

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

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

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

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

The 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.

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

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between 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. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

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

NOTESTO FINANCIAL STATEMENTS 31

Notes to Financial Statements  (unaudited) (continued)

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 andnon-cash collateral it receives. The Fund generally agrees not to usenon-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 its counterparties are not fully collateralized, it bears the risk of loss from counterpartynon-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, it 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 Company, 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, to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee based on a percentage of the aggregate average daily net assets of the Fund and BlackRock Total Return V.I. Fund, a series of the Company, at the following annual rates:

Average Daily Net Assets	Investment Advisory Fee
First $250 Million		0.55	%
$250 Million — $500 Million		0.50
$500 Million — $750 Million		0.45
Greater than $750 Million		0.40

For the six months ended June 30, 2019, the aggregate average daily net assets of the Fund and BlackRock Total Return V.I. Fund were approximately $1,072,814,987.

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets attributable to Class III.

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

For the six months ended June 30, 2019, the class specific distribution fees borne directly by Class III were $396,164.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations, which is shown as transfer agent — class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

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

Class I	$	147,969
Class III		245,982
	$	393,951

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily 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”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitations described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $5,320.

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 April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

32 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

For the six months ended June 30, 2019, the Fund reimbursed the Manager $2,616 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.06	%
Class III	0.05

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are shown as transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements are as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$      96,197
Class III		$    166,701
		$    262,898

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

Class I	1.25	%
Class III	1.50

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/ or reimbursed by the Manager.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“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 331/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the six months ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

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

7. PURCHASES AND SALES

For the six months ended June 30, 2019, purchases and sales of investments, including paydowns and excluding short-term securities, were $267,321,479 and $231,525,123, respectively.

8. INCOME TAX INFORMATION

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

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. 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 June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of December 31, 2018, the Fund had a capital loss carryforward available to offset future realized capital gains of $7,387,971, with no expiration date.

NOTESTO FINANCIAL STATEMENTS 33

Notes to Financial Statements  (unaudited) (continued)

As of June 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
Tax cost	$	498,450,764
Gross unrealized appreciation	$	10,272,163
Gross unrealized depreciation		(7,277,229	)
Net unrealized appreciation	$	2,994,934

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, 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. The Fund’s prospectus provides details of the risks to which the Fund is subject.

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. 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 amark-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.

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

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

34 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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.

Concentration Risk: 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 increase as interest rates fall and decrease as interest rates rise. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

Certain Funds may invest in securities that are rated below investment grade quality (sometimes called “junk bonds”), which are predominantly speculative, have greater credit risk and generally are less liquid than, and have more volatile prices than, higher quality securities.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19						Year Ended 12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		2,620,908		$	18,764,893			5,042,504		$	36,340,639
Shares issued in reinvestment of distributions		669,892			4,756,573			1,458,219			10,550,832
Shares redeemed		(7,150,982	)		(51,068,490	)		(6,544,646	)		(47,246,857)
Net decrease		(3,860,182	)	$	(27,547,024	)		(43,923	)	$	(355,386)
Class III
Shares sold		22,922,280		$	163,313,373			33,609,633		$	243,303,797
Shares issued in reinvestment of distributions		1,118,461			7,957,636			1,977,382			14,290,069
Shares redeemed		(13,746,978	)		(98,529,795	)		(32,705,712	)		(234,399,025)
Net increase		10,293,763		$	72,741,214			2,881,303		$	23,194,841
Total Net Increase		6,433,581		$	45,194,190			2,837,380		$	22,839,455

12. SUBSEQUENT EVENTS

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

NOTESTO FINANCIAL STATEMENTS 35

Glossary of Terms Used in this Report

Currency

EUR	Euro
GBP	British Pound
USD	United States Dollar
Portfolio Abbreviations
CDX	Credit Default Swap Index
LIBOR	London Interbank Offered Rate
MSCI	Morgan Stanley Capital International
OTC	Over-the-counter
PIK	Payment-In-Kind
REIT	Real Estate Investment Trust
S&P	S&P Global Ratings

36 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds II, Inc.

▶ BlackRock Total Return V.I. Fund

    Not FDIC  Insured - May Lose Value - No Bank Guarantee    

Fund Summary  as of June 30, 2019 BlackRock Total Return V.I. Fund

Investment Objective

BlackRock Total Return V.I. Fund’s (the “Fund”) investment objective is to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended June 30, 2019, the Fund outperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.

What factors influenced performance?

The Fund’s overweighting of U.S. investment grade corporate credit was among the leading positive contributors to relative performance, as the asset class benefited from tightening credit spreads (the incremental yield provided by lower quality bonds relative to U.S. Treasuries). An above-benchmark stance with respect to portfolio duration (and corresponding sensitivity to changes in interest rates) also benefited performance as U.S. Treasury yields declined over the period. Allocations to non-agency mortgage-backed securities (“MBS”) and collateralized loan obligations (“CLOs”) also contributed to performance. Finally, a small position in emerging market debt aided relative performance as sentiment with respect to the asset class was supported by the outlook for accommodative Fed policy.

The Fund’s relative value strategies within agency MBS detracted from performance during the period.

Describe recent portfolio activity.

Entering the period, the Fund modestly increased its overweight in duration while rotating exposure into front end of the curve on the view that the shift by the Fed to a dovish monetary policy stance and a near-neutral policy rate were likely to keep U.S. interest rates range-bound in the near-term. After the sharp decline in risk assets in late 2018, the Fund added to its investment grade credit overweight. The investment adviser also added tactically in emerging markets on the view that the Fed had taken upward pressure off the U.S. dollar and allowed for easier local monetary policy in those countries. As interest rates declined in early 2019 and mortgage prepayments accelerated, the Fund shifted to an underweight position in agency MBS while maintaining diversified exposure in securitized assets generally.

Into the second quarter, the investment adviser further increased the Fund’s duration to overweight as a means to manage risk against credit-based exposures in the portfolio, given the Fed’s commitment to easing monetary policy and maintaining the economic expansion. The investment adviser tactically reduced some exposures in U.S. investment grade credit on tight valuations while maintaining a tilt toward owning higher-quality spread assets. Additionally, the Fund added a position in inflation-protected bonds given attractive valuations as the sector underperformed most other assets for the quarter.

Describe portfolio positioning at period end.

The Fund maintained an above-benchmark duration stance at the end of the period on the view that interest rates were likely to remain low or trend lower in the near term. The Fund maintained a constructive stance on high quality spread assets such as investment grade credit, municipal bonds and certain areas within high yield credit. The investment adviser continued to hold a small position in emerging market debt, while maintaining a cautious stance around security selection within the asset class.

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

2 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Total Return V.I. Fund

Performance Summary for the Period Ended June 30, 2019

										Average Annual Total Returns (a)
	Standardized 30-Day Yields (b)			Unsubsidized 30-Day Yields (b)			6-Month Total Returns(a)			1 Year			5 Years			10 Years
Class I (c)(d)		2.83	%		2.63	%		6.75	%		7.85	%		2.85	%		5.18	%
Class III (c)(d)		2.52			2.42			6.47			7.49			2.52			4.88	(e)
Bloomberg Barclays U.S. Aggregate Bond Index(f)		—			—			6.11			7.87			2.95			3.90

^(a)  For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b) 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.

^(c)  Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on the ex-dividend/payable date. Insurance-related fees and expenses are not reflected in these returns.

^(d) Under normal circumstances, the Fund invests at least 80%, and typically invests 90% or more, of its assets in fixed income securities, such as corporate bonds and notes, mortgage-backed securities, asset-backed securities, convertible securities, preferred securities, government obligations and money market securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Total Return V.I. Fund (the “Predecessor Fund”), a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(e) The returns for Class III Shares prior to August 14, 2012, the recommencement of operations of Class III Shares, are based upon the performance of the Fund’s Class I Shares, as adjusted to reflect the distribution (12b-1) fees applicable to Class III Shares.

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

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

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

Expense Example

	Actual								Hypothetical (a)
					Including interest   expense and Fees		Excluding interest   expense and Fees				Including interest expense				Excluding interest expense and Fees
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Ending Account Value (06/30/19)		Expenses Paid During the Period (c)
Class I	$	1,000.00	$	1,067.50	$	2.67	$	2.56	$	1,000.00	$	1,022.22	$	2.61	$	1,022.32	$	2.51
Class III		1,000.00		1,064.70		4.25		4.15		1,000.00		1,020.68		4.16		1,020.78		4.06

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

^(b) For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.52% for Class I and 0.83% for Class III), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).

^(c) For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.50% for Class I and 0.81% for Class III), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 5 for further information on how expenses were calculated.

FUND SUMMARY 3

Fund Summary  as of June 30, 2019 (continued) BlackRock Total Return V.I. Fund

Portfolio Information as of June 30, 2019

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
U.S. Government Sponsored Agency Obligations		34	%
Corporate Bonds		29
U.S. Treasury Obligations		16
Asset-Backed Securities		7
Municipal Bonds		5
Non-Agency Mortgage-Backed Securities		4
Foreign Government Obligations		3
Investment Companies		2
Foreign Agency Obligations		—	(b)
Floating Rate Loan Interests		—	(b)
Capital Trusts		—	(b)
Other Interests		—	(b)

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

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

CREDIT QUALITY ALLOCATION

Credit Rating(a)	Percent of Total Investments (b)
AAA/Aaa (c)		55	%
AA/Aa		6
A		17
BBB/Baa		16
BB/Ba		1
B		—	(d)
CCC/Caa		—	(d)
CC/Ca		1
C		—	(d)
NR		4

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

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

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

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

4 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Disclosure of Expenses

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

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

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

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

The Benefits and Risks of Leveraging

The Fund may utilize leverage to seek to enhance returns and net asset value (“NAV”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

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

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

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

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

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

Derivative Financial Instruments

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

DISCLOSURE OF EXPENSES / THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS 5

Schedule of Investments  (unaudited) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Asset-Backed Securities — 8.3%
Accredited Mortgage Loan Trust, Series 2006-1, Class M2, (LIBOR USD 1 Month + 0.34%), 2.74%, 04/25/36(a)	USD		190	$	102,791
ACE Securities Corp. Home Equity Loan Trust(a):
Series 2003-OP1, Class A2, (LIBOR USD 1 Month + 0.72%), 3.12%, 12/25/33			122		120,251
Series 2007-HE4, Class A2A, (LIBOR USD 1 Month + 0.13%), 2.53%, 05/25/37			98		27,206
Adams Mill CLO Ltd., Series 2014-1A, Class A2R, (LIBOR USD 3 Month + 1.10%), 3.70%, 07/15/26(a)(b)			197		197,137
Ajax Mortgage Loan Trust(b):
Series 2017-D, Class A, 3.75%, 12/25/57			363		372,635
Series 2018-A, Class A, 3.85%, 04/25/58(c)			345		339,471
Series 2018-A, Class B, 0.00%, 04/25/58(c)			82		47,824
Series 2018-B, Class A, 3.75%, 02/26/57(c)			316		315,690
Series 2018-B, Class B, 0.00%, 02/26/57(c)			115		32,169
Series 2018-D, Class A, 3.75%, 08/25/58(c)(d)			387		386,091
Series 2018-D, Class B, 0.00%, 08/25/58(c)(d)			110		61,709
Series 2018-E, Class A, 4.38%, 06/25/58(d)			216		218,748
Series 2018-E, Class B, 5.25%, 06/25/58(d)			100		102,993
Series 2018-E, Class C, 0.00%, 06/25/58(c)(d)			98		29,411
Series 2018-F, Class A, 4.38%, 11/25/58(c)(d)			725		730,890
Series 2018-F, Class B, 5.25%, 11/25/58(c)(d)			111		110,079
Series 2018-F, Class C, 0.00%, 11/25/58(c)			251		121,688
Series 2018-G, Class A, 4.38%, 06/25/57(c)(d)			691		690,618
Series 2018-G, Class B, 5.25%, 06/25/57(c)(d)			103		101,156
Series 2018-G, Class C, 5.25%, 06/25/57(c)			227		210,157
Series 2019-A, Class A, 3.75%, 08/25/57(d)			702		705,835
Series 2019-A, Class B, 5.25%, 08/25/57(c)(d)			100		97,960
Series 2019-A, Class C, 0.00%, 08/25/57			185		149,803
Series 2019-B, Class A, 3.75%, 01/25/59(d)			1,147		1,153,213
Series 2019-B, Class B, 5.25%, 01/25/59(d)			117		114,663
Series 2019-B, Class C, 0.00%, 01/25/59(c)			300		216,990
Allegro CLO II-S Ltd., Series 2014-1RA, Class A1, (LIBOR USD 3 Month + 1.08%), 3.67%, 10/21/28(a)(b)			500		499,486
Allegro CLO V Ltd., Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.24%), 3.84%, 10/16/30(a)(b)			250		250,640
ALM V Ltd.(a)(b):
Series 2012-5A, Class A1R3, (LIBOR USD 3 Month + 0.91%), 3.51%, 10/18/27			290		289,728
Series 2012-5A, Class A2R3, (LIBOR USD 3 Month + 1.25%), 3.85%, 10/18/27			250		245,778
Series 2012-5A, Class BR3, (LIBOR USD 3 Month + 1.65%), 4.25%, 10/18/27			250		247,254
ALM VII R Ltd., Series 2013-7RA, Class A1R, (LIBOR USD 3 Month + 1.41%), 4.01%, 10/15/28(a)(b)			250		249,918
ALM VIII Ltd., Series 2013-8A, Class A1R, (LIBOR USD 3 Month + 1.49%), 4.09%, 10/15/28(a)(b)			380		379,945
ALM XII Ltd., Series 2015-12A, Class A1R2, (LIBOR USD 3 Month + 0.89%), 3.49%, 04/16/27(a)(b)			250		249,478
ALM XVI Ltd., Series 2015-16A, Class A2R2, (LIBOR USD 3 Month + 1.50%), 4.10%, 07/15/27(a)(b)			255		254,178
American Homes 4 Rent Trust, Series 2014-SFR3, Class A, 3.68%, 12/17/36(b)			184		191,695
AMMC CLO 19 Ltd., Series 2016-19A, Class C, (LIBOR USD 3 Month + 2.80%), 5.40%, 10/15/28(a)(b)			100		99,945

Security		Par         (000)		Value
Asset-Backed Securities (continued)
Anchorage Capital CLO 1-R Ltd., Series 2018-1RA, Class A1, (LIBOR USD 3 Month + 0.99%), 3.59%, 04/13/31(a)(b)	USD		310	$	307,328
Anchorage Capital CLO 4-R Ltd.(a)(b):
Series 2014-4RA, Class A, (LIBOR USD 3 Month + 1.05%), 3.63%, 01/28/31			250		248,299
Series 2014-4RA, Class C, (LIBOR USD 3 Month + 1.85%), 4.43%, 01/28/31			250		243,337
Anchorage Capital CLO 5-R Ltd.(a)(b):
Series 2014-5RA, Class B, (LIBOR USD 3 Month + 1.45%), 4.05%, 01/15/30			500		492,926
Series 2014-5RA, Class C, (LIBOR USD 3 Month + 1.85%), 4.45%, 01/15/30			250		242,824
Anchorage Capital CLO 6 Ltd., Series 2015-6A, Class AR, (LIBOR USD 3 Month + 1.27%), 3.87%, 07/15/30(a)(b)			250		249,500
Anchorage Capital CLO 7 Ltd., Series 2015-7A, Class AR, (LIBOR USD 3 Month + 0.96%), 3.56%, 10/15/27(a)(b)			750		748,857
Anchorage Capital CLO Ltd., Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.85%, 10/13/30(a)(b)			250		249,036
Apidos CLO XII, Series 2013-12A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.68%, 04/15/31(a)(b)			500		497,053
Apidos CLO XV, Series 2013-15A, Class A1RR, (LIBOR USD 3 Month + 1.01%), 3.60%, 04/20/31(a)(b)			500		494,275
Arbor Realty Collateralized Loan Obligation Ltd., Series 2017-FL3, Class A, (LIBOR USD 1 Month + 0.99%), 3.38%, 12/15/27(a)(b)			130		129,910
Arbor Realty Commercial Real Estate Notes Ltd., Series 2017-FL2, Class A, (LIBOR USD 1 Month + 0.99%), 3.38%, 08/15/27(a)(b)			250		249,928
Ares XXXVII CLO Ltd., Series 2015-4A, Class A1R, (LIBOR USD 3 Month + 1.17%), 3.77%, 10/15/30(a)(b)			250		249,665
Argent Mortgage Loan Trust, Series 2005-W1, Class A2, (LIBOR USD 1 Month + 0.48%), 2.88%, 05/25/35(a)			52		45,466
Avery Point V CLO Ltd., Series 2014-5A, Class AR, (LIBOR USD 3 Month + 0.98%), 3.57%, 07/17/26(a)(b)			185		184,988
Avery Point VI CLO Ltd., Series 2015-6A, Class BR, (LIBOR USD 3 Month + 1.50%), 4.07%, 08/05/27(a)(b)			250		248,237
B2R Mortgage Trust(b):
Series 2015-1, Class A1, 2.52%, 05/15/48			10		10,088
Series 2015-2, Class A, 3.34%, 11/15/48			44		44,385
Babson CLO Ltd., Series 2015-2A, Class AR, (LIBOR USD 3 Month + 1.19%), 3.78%, 10/20/30(a)(b)			260		259,141
BankAmerica Manufactured Housing Contract Trust, Series 1998-2, Class B1, 7.93%, 12/10/25(d)			300		181,200
Battalion CLO X Ltd., Series 2016-10A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.78%, 01/24/29(a)(b)			940		940,286
Bayview Financial Revolving Asset Trust(a)(b):
Series 2004-B, Class A1, (LIBOR USD 1 Month + 1.00%), 3.40%, 05/28/39			128		118,092
Series 2005-A, Class A1, (LIBOR USD 1 Month + 1.00%), 3.40%, 02/28/40			171		165,140
Series 2005-E, Class A1, (LIBOR USD 1 Month + 1.00%), 3.40%, 12/28/40			69		64,956

6 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Asset-Backed Securities (continued)
BCMSC Trust(d):
Series 2000-A, Class A2, 7.58%, 06/15/30	USD		40	$	13,734
Series 2000-A, Class A3, 7.83%, 06/15/30			37		13,183
Series 2000-A, Class A4, 8.29%, 06/15/30			27		10,100
BDS Ltd., Series 2019-FL3, Class A, (LIBOR USD 1 Month + 1.40%), 3.79%, 12/15/35(a)(b)			200		200,438
Bear Stearns Asset-Backed Securities I Trust(a):
Series 2007-FS1, Class 1A3, (LIBOR USD 1 Month + 0.17%), 2.57%, 05/25/35			82		87,272
Series 2007-HE2, Class 23A, (LIBOR USD 1 Month + 0.14%), 2.54%, 03/25/37			48		49,932
Series 2007-HE3, Class 1A4, (LIBOR USD 1 Month + 0.35%), 2.75%, 04/25/37			197		168,103
Bear Stearns Asset-Backed Securities Trust, Series 2005-4, Class M2, (LIBOR USD 1 Month + 1.20%), 3.60%, 01/25/36(a)			5		5,303
Benefit Street Partners CLO VI Ltd., Series 2015-VIA, Class A1R, (LIBOR USD 3 Month + 1.24%), 3.84%, 10/18/29(a)(b)			250		249,525
BlueMountain CLO Ltd.(a)(b):
Series 2013-1A, Class A1R2, (LIBOR USD 3 Month + 1.23%), 3.82%, 01/20/29			310		310,195
Series 2013-2A, Class A1R, (LIBOR USD 3 Month + 1.18%), 3.77%, 10/22/30			500		499,497
Carrington Mortgage Loan Trust(a):
Series 2006-FRE2, Class A2, (LIBOR USD 1 Month + 0.12%), 2.52%, 10/25/36			65		50,549
Series 2006-FRE2, Class A3, (LIBOR USD 1 Month + 0.16%), 2.56%, 10/25/36			130		101,392
Series 2006-FRE2, Class A5, (LIBOR USD 1 Month + 0.08%), 2.48%, 03/25/35			22		16,946
Series 2006-NC4, Class A3, (LIBOR USD 1 Month + 0.16%), 2.56%, 10/25/36			83		76,622
Series 2007-RFC1, Class A4, (LIBOR USD 1 Month + 0.22%), 2.62%, 10/25/36			100		68,994
CBAM Ltd., Series 2017-1A, Class A1, (LIBOR USD 3 Month + 1.25%), 3.84%, 07/20/30(a)(b)			250		249,419
C-BASS Trust:
Series 2006-CB7, Class A4, (LIBOR USD 1 Month + 0.16%), 2.56%, 10/25/36(a)			59		45,611
Series 2007-CB1, Class AF4, 3.57%, 01/25/37(e)			71		31,109
Cedar Funding II CLO Ltd.(a)(b):
Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.23%), 3.68%, 06/09/30			250		249,806
Series 2013-1A, Class BR, (LIBOR USD 3 Month + 1.75%), 4.20%, 06/09/30			250		249,315
Cedar Funding VI CLO Ltd., Series 2016-6A, Class AR, (LIBOR USD 3 Month + 1.09%), 3.68%, 10/20/28(a)(b)			430		429,754
Cedar Funding VIII CLO Ltd., Series 2017-8A, Class A1, (LIBOR USD 3 Month + 1.25%), 3.84%, 10/17/30(a)(b)			510		509,589
CIFC Funding Ltd.(a)(b):
Series 2013-2A, Class A1LR, (LIBOR USD 3 Month + 1.21%), 3.81%, 10/18/30			230		229,492
Series 2014-4RA, Class A1A, (LIBOR USD 3 Month + 1.13%), 3.72%, 10/17/30			540		539,119
Citicorp Residential Mortgage Trust, Series 2007-2, Class M1, 5.02%, 06/25/37(e)			100		97,314
Citigroup Mortgage Loan Trust(a):
Series 2007-AHL2, Class A3B, (LIBOR USD 1 Month + 0.20%), 2.60%, 05/25/37			244		179,750
Series 2007-AHL2, Class A3C, (LIBOR USD 1 Month + 0.27%), 2.67%, 05/25/37			111		82,359

Security		Par         (000)		Value
Asset-Backed Securities (continued)
Citigroup Mortgage Loan Trust, Inc., Series 2006-WFH4, Class M3, (LIBOR USD 1 Month + 0.32%), 2.72%, 11/25/36(a)	USD		100	$	88,146
Conseco Finance Corp.:
Series 1997-3, Class M1, 7.53%, 03/15/28(d)			52		51,754
Series 1997-6, Class M1, 7.21%, 01/15/29(d)			33		33,996
Series 1998-8, Class M1, 6.98%, 09/01/30(d)			109		96,713
Series 1999-5, Class A5, 7.86%, 03/01/30(d)			45		31,720
Series 1999-5, Class A6, 7.50%, 03/01/30(d)			32		22,017
Series 2001-D, Class B1, (LIBOR USD 1 Month + 2.50%), 4.89%, 11/15/32(a)			74		72,598
Conseco Finance Securitizations Corp.:
Series 2000-1, Class A5, 8.06%, 09/01/29(d)			57		25,113
Series 2000-4, Class A6, 8.31%, 05/01/32(d)			151		66,726
Series 2000-5, Class A7, 8.20%, 05/01/31			145		83,594
Countrywide Asset-Backed Certificates(a):
Series 2003-BC3, Class A2, (LIBOR USD 1 Month + 0.62%), 3.02%, 09/25/33			108		106,538
Series 2006-S10, Class A3, (LIBOR USD 1 Month + 0.32%), 2.72%, 10/25/36			35		33,276
Series 2006-SPS1, Class A, (LIBOR USD 1 Month + 0.22%), 2.62%, 12/25/25			2		2,141
Credit-Based Asset Servicing & Securitization LLC:
Series 2006-CB2, Class AF4, 3.43%, 12/25/36(e)			15		13,550
Series 2006-MH1, Class B1, 6.25%, 10/25/36(b)(e)			100		102,812
Series 2006-SL1, Class A2, 6.06%, 09/25/36(b)(e)			85		12,502
Series 2007-CB6, Class A4, (LIBOR USD 1 Month + 0.34%), 2.74%, 07/25/37(a)(b)			55		37,591
CWABS Asset-Backed Certificates Trust:
Series 2005-16, Class 1AF, 5.69%, 05/25/36(d)			135		133,970
Series 2005-16, Class 2AF3, 5.67%, 05/25/36(d)			27		27,564
Series 2006-11, Class 3AV2, (LIBOR USD 1 Month + 0.16%), 2.56%, 09/25/46(a)			8		8,249
CWABS Revolving Home Equity Loan Trust, Series 2004-U, Class 2A, (LIBOR USD 1 Month + 0.27%), 2.66%, 03/15/34(a)			24		23,196
CWABS, Inc. Asset-Backed Certificates Trust, Series 2004-5, Class A, (LIBOR USD 1 Month + 0.90%), 3.30%, 10/25/34(a)			113		112,345
CWHEQ Home Equity Loan Trust, Series 2006-S5, Class A5, 6.16%, 06/25/35			14		15,269
CWHEQ Revolving Home Equity Loan Resuritization Trust(a)(b):
Series 2006-RES, Class 4Q1B, (LIBOR USD 1 Month + 0.30%), 2.69%, 12/15/33			20		19,090
Series 2006-RES, Class 5B1B, (LIBOR USD 1 Month + 0.19%), 2.58%, 05/15/35(c)			10		9,804
Series 2006-RES, Class 5F1A, (LIBOR USD 1 Month + 0.24%), 2.63%, 12/15/35			111		108,286
CWHEQ Revolving Home Equity Loan Trust(a):
Series 2005-B, Class 2A, (LIBOR USD 1 Month + 0.18%), 2.57%, 05/15/35			17		16,696
Series 2006-C, Class 2A, (LIBOR USD 1 Month + 0.18%), 2.57%, 05/15/36			115		111,510
Series 2006-H, Class 1A, (LIBOR USD 1 Month + 0.15%), 2.54%, 11/15/36			69		56,808
DCP Rights LLC, Series 2014-1A, Class A, 5.46%, 10/25/44(b)			211		221,483

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Asset-Backed Securities (continued)
Dorchester Park CLO DAC, Series 2015-1A, Class BR, (LIBOR USD 3 Month + 1.45%), 4.04%, 04/20/28(a)(b)	USD		250	$	247,260
Dryden 53 CLO Ltd., Series 2017-53A, Class A, (LIBOR USD 3 Month + 1.12%), 3.72%, 01/15/31(a)(b)			800		799,826
Dryden XXV Senior Loan Fund, Series 2012-25A, Class ARR, (LIBOR USD 3 Month + 0.90%), 3.50%, 10/15/27(a)(b)			250		249,471
First Franklin Mortgage Loan Trust(a):
Series 2004-FFH3, Class M3, (LIBOR USD 1 Month + 1.05%), 3.45%, 10/25/34			33		30,083
Series 2006-FF16, Class 2A3, (LIBOR USD 1 Month + 0.14%), 2.54%, 12/25/36			737		427,608
Series 2006-FF17, Class A5, (LIBOR USD 1 Month + 0.15%), 2.55%, 12/25/36			613		537,814
Series 2006-FFH1, Class M2, (LIBOR USD 1 Month + 0.40%), 2.80%, 01/25/36			95		55,652
Flatiron CLO Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month + 0.89%), 3.49%, 04/15/27(a)(b)			250		250,093
Fremont Home Loan Trust, Series 2006-3, Class 1A1, (LIBOR USD 1 Month + 0.14%), 2.54%, 02/25/37(a)			246		188,837
GE-WMC Asset-Backed Pass-Through Certificates(a):
Series 2005-2, Class A2C, (LIBOR USD 1 Month + 0.25%), 2.65%, 12/25/35			18		18,186
Series 2005-2, Class M1, (LIBOR USD 1 Month + 0.44%), 2.84%, 12/25/35			172		101,510
GSAA Home Equity Trust, Series 2007-2, Class AF3, 5.92%, 03/25/37(d)			28		9,744
GSAMP Trust(a):
Series 2007-H1, Class A1B, (LIBOR USD 1 Month + 0.20%), 2.60%, 01/25/47			29		17,618
Series 2007-HS1, Class M6, (LIBOR USD 1 Month + 2.25%), 4.65%, 02/25/47			40		41,222
Halcyon Loan Advisors Funding Ltd., Series 2015-2A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.66%, 07/25/27(a)(b)			430		429,452
Highbridge Loan Management Ltd., Series 6A-2015, Class A1R, (LIBOR USD 3 Month + 1.00%), 3.57%, 02/05/31(a)(b)			250		247,794
Home Equity Asset Trust, Series 2007-1, Class 2A3, (LIBOR USD 1 Month + 0.15%), 2.55%, 05/25/37(a)			90		74,806
Home Equity Mortgage Loan Asset-Backed Trust(a):
Series 2004-A, Class M2, (LIBOR USD 1 Month + 2.03%), 4.43%, 07/25/34			26		25,828
Series 2007-A, Class 2A2, (LIBOR USD 1 Month + 0.19%), 2.59%, 04/25/37			70		52,939
Series 2007-B, Class 2A3, (LIBOR USD 1 Month + 0.20%), 2.60%, 07/25/37			120		81,793
Home Equity Mortgage Trust, Series 2006-2, Class 1A1, 5.87%, 07/25/36(e)			71		22,085
Home Loan Mortgage Loan Trust, Series 2005- 1, Class A3, (LIBOR USD 1 Month + 0.72%), 3.11%, 04/15/36(a)			24		22,173
ICG US CLO Ltd., Series 2015-1A, Class A1R, (LIBOR USD 3 Month + 1.14%), 3.73%, 10/19/28(a)(b)			250		249,741
Invitation Homes Trust, Series 2018-SFR3, Class A, (LIBOR USD 1 Month + 1.00%), 3.39%, 07/17/37(a)(b)			127		126,595

Security		Par         (000)		Value
Asset-Backed Securities (continued)
Irwin Home Equity Loan Trust, Series 2006-3, Class 2A3, 6.53%, 09/25/37(b)(e)	USD		46	$	45,147
JPMorgan Mortgage Acquisition Trust, Series 2006-CW1, Class M1, (LIBOR USD 1 Month + 0.27%), 2.67%, 05/25/36(a)			100		96,652
LCM 26 Ltd., Series 26A, Class A1, (LIBOR USD 3 Month + 1.07%), 3.66%, 01/20/31(a)(b)			280		278,484
LCM XX LP, Series 20A, Class AR, (LIBOR USD 3 Month + 1.04%), 3.63%, 10/20/27(a)(b)			250		249,975
LCM XXIV Ltd., Series 24A, Class A, (LIBOR USD 3 Month + 1.31%), 3.90%, 03/20/30(a)(b)			250		250,484
Legacy Mortgage Asset Trust(b):
Series 2019-GS2, Class A1, 3.75%, 01/25/59(e)			116		115,964
Series 2019-SL1, Class A, 4.00%, 12/28/54(d)			468		469,690
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class M1, 6.63%, 04/15/40(d)			86		90,948
Lendmark Funding Trust, Series 2017-1A, Class A, 2.83%, 12/22/25(b)			495		493,662
Litigation Fee Residual Funding LLC, Series 2015-1, Class A, 4.00%, 10/30/27(c)			70		69,496
LoanCore Issuer Ltd., Series 2018-CRE1, Class A, (LIBOR USD 1 Month + 1.13%), 3.52%, 05/15/28(a)(b)			250		250,000
Long Beach Mortgage Loan Trust(a):
Series 2006-2, Class 1A, (LIBOR USD 1 Month + 0.18%), 2.58%, 03/25/46			232		185,473
Series 2006-4, Class 2A3, (LIBOR USD 1 Month + 0.16%), 2.56%, 05/25/36			369		161,792
Series 2006-4, Class 2A4, (LIBOR USD 1 Month + 0.26%), 2.66%, 05/25/36			410		184,551
Series 2006-9, Class 2A2, (LIBOR USD 1 Month + 0.11%), 2.51%, 10/25/36			54		23,087
Series 2006-9, Class 2A3, (LIBOR USD 1 Month + 0.16%), 2.56%, 10/25/36			331		142,689
Series 2006-9, Class 2A4, (LIBOR USD 1 Month + 0.23%), 2.63%, 10/25/36			123		53,536
Series 2006-10, Class 2A3, (LIBOR USD 1 Month + 0.16%), 2.56%, 11/25/36			85		38,030
Series 2006-10, Class 2A4, (LIBOR USD 1 Month + 0.22%), 2.62%, 11/25/36			64		28,867
Madison Avenue Manufactured Housing Contract Trust, Series 2002-A, Class B2, (LIBOR USD 1 Month + 3.25%), 5.65%, 03/25/32(a)			38		38,911
Madison Park Funding XI Ltd., Series 2013-11A, Class AR, (LIBOR USD 3 Month + 1.16%), 3.75%, 07/23/29(a)(b)			250		250,027
Madison Park Funding XIII Ltd., Series 2014-13A, Class AR2, (LIBOR USD 3 Month + 0.95%), 3.54%, 04/19/30(a)(b)			580		578,003
Madison Park Funding XVIII Ltd., Series 2015-18A, Class A1R, (LIBOR USD 3 Month + 1.19%), 3.78%, 10/21/30(a)(b)			510		509,038
Madison Park Funding XXVI Ltd., Series 2017-26A, Class AR, (LIBOR USD 3 Month + 1.20%), 3.78%, 07/29/30(a)(b)			270		270,075
Marathon CRE Ltd., Series 2018-FL1, Class A, (LIBOR USD 1 Month + 1.15%), 3.54%, 06/15/28(a)(b)			100		100,000
Marble Point CLO XI Ltd., Series 2017-2A, Class A, (LIBOR USD 3 Month + 1.18%), 3.78%, 12/18/30(a)(b)			250		248,777

8 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Asset-Backed Securities (continued)
Mariner CLO 5 Ltd., Series 2018-5A, Class A, (LIBOR USD 3 Month + 1.11%), 3.69%, 04/25/31(a)(b)	USD		250	$	248,364
Mariner CLO LLC, Series 2017-4A, Class A, (LIBOR USD 3 Month + 1.21%), 3.80%, 10/26/29(a)(b)			250		249,391
MASTR Asset-Backed Securities Trust, Series 2006-HE2, Class A3, (LIBOR USD 1 Month + 0.15%), 2.55%, 06/25/36(a)			205		115,278
MASTR Specialized Loan Trust, Series 2006-3, Class A, (LIBOR USD 1 Month + 0.26%),     2.66%, 06/25/46(a)(b)			18		16,754
Merrill Lynch Mortgage Investors Trust(a):
Series 2006-OPT1, Class M1, (LIBOR USD 1 Month + 0.26%), 2.66%, 08/25/37			37		17,360
Series 2006-RM3, Class A2B, (LIBOR USD 1 Month + 0.09%), 2.49%, 06/25/37			28		8,225
Morgan Stanley ABS Capital I, Inc. Trust(a):
Series 2005-HE1, Class A2MZ, (LIBOR USD 1 Month + 0.60%), 3.00%, 12/25/34			155		155,216
Series 2005-HE5, Class M4, (LIBOR USD 1 Month + 0.87%), 3.27%, 09/25/35			133		70,353
Series 2007-NC1, Class A1, (LIBOR USD 1 Month + 0.13%), 2.53%, 11/25/36			461		275,365
MP CLO III Ltd., Series 2013-1A, Class AR, (LIBOR USD 3 Month + 1.25%), 3.84%, 10/20/30(a)(b)			250		248,905
MP CLO VIII Ltd., Series 2015-2A, Class AR, (LIBOR USD 3 Month + 0.91%), 3.49%, 10/28/27(a)(b)			270		269,566
Navient Private Education Loan Trust(a)(b):
Series 2014-AA, Class A2B, (LIBOR USD 1 Month + 1.25%), 3.64%, 02/15/29			317		321,369
Series 2014-CTA, Class B, (LIBOR USD 1 Month + 1.75%), 4.14%, 10/17/44			200		201,255
Neuberger Berman Loan Advisers CLO Ltd.,
Series 2017-26A, Class A, (LIBOR USD 3 Month + 1.17%), 3.77%, 10/18/30(a)(b)			250		249,956
Oakwood Mortgage Investors, Inc.(d):
Series 2001-D, Class A2, 5.26%, 01/15/19			22		16,060
Series 2001-D, Class A4, 6.93%, 09/15/31			13		10,502
Series 2002-B, Class M1, 7.62%, 06/15/32			79		66,924
OCP CLO Ltd.(a)(b):
Series 2016-12A, Class A1R, (LIBOR USD 3 Month + 1.12%), 3.72%, 10/18/28			216		215,748
Series 2017-13A, Class A1A, (LIBOR USD 3 Month + 1.26%), 3.86%, 07/15/30			300		300,154
Series 2017-14A, Class B, (LIBOR USD 3 Month + 1.95%), 4.47%, 11/20/30			250		243,461
Octagon Investment Partners XIX Ltd., Series 2014-1A, Class AR, (LIBOR USD 3 Month + 1.10%), 3.70%, 04/15/26(a)(b)			214		214,024
Octagon Investment Partners XVI Ltd., Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.02%), 3.61%, 07/17/30(a)(b)			250		247,027
Octagon Investment Partners XVII Ltd., Series 2013-1A, Class A1R2, (LIBOR USD 3 Month + 1.00%), 3.58%, 01/25/31(a)(b)			250		247,271
OFSI Fund VI Ltd., Series 2014-6A, Class A2R, (LIBOR USD 3 Month + 1.13%), 3.73%, 03/20/25(a)(b)			201		200,536
OFSI Fund VII Ltd., Series 2014-7A, Class AR, (LIBOR USD 3 Month + 0.90%), 3.50%, 10/18/26(a)(b)			160		160,280

Security		Par         (000)		Value
Asset-Backed Securities (continued)
OHA Loan Funding Ltd., Series 2013-2A, Class AR, (LIBOR USD 3 Month + 1.04%), 3.56%, 05/23/31(a)(b)	USD		225	$	223,046
Option One Mortgage Accep Corp. Asset-Backed Certificates, Series 2003-4, Class A2, (LIBOR USD 1 Month + 0.64%), 3.04%, 07/25/33(a)			174		172,479
Option One Mortgage Loan Trust:
Series 2007-CP1, Class 2A3, (LIBOR USD 1 Month + 0.21%), 2.61%, 03/25/37(a)			90		62,014
Series 2007-FXD1, Class 1A1, 5.87%, 01/25/37(e)			100		96,075
Series 2007-FXD1, Class 2A1, 5.87%, 01/25/37(e)			261		250,136
Series 2007-FXD2, Class 1A1, 5.82%, 03/25/37(e)			435		443,011
Origen Manufactured Housing Contract Trust, Series 2007-B, Class A1, (LIBOR USD 1 Month + 1.20%), 3.59%, 10/15/37(a)(b)(c)			80		78,517
Ownit Mortgage Loan Trust, Series 2006-2, Class A2C,     6.00%, 01/25/37(e)			70		66,904
OZLM Funding III Ltd., Series 2013-3A, Class BR, (LIBOR USD 3 Month + 3.00%), 5.59%, 01/22/29(a)(b)			320		319,889
OZLM Funding IV Ltd., Series 2013-4A, Class A1R, (LIBOR USD 3 Month + 1.25%),     3.84%, 10/22/30(a)(b)			390		388,819
OZLM XIV Ltd., Series 2015-14A, Class A2AR, (LIBOR USD 3 Month + 1.70%), 4.30%, 01/15/29(a)(b)			250		248,530
Palmer Square CLO Ltd.(a)(b):
Series 2014-1A, Class A1R2, (LIBOR USD 3 Month + 1.13%), 3.72%, 01/17/31			250		248,760
Series 2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.63%, 04/18/31			250		247,724
Series 2018-2A, Class A1A, (LIBOR USD 3 Month + 1.10%), 3.70%, 07/16/31			420		417,324
Park Avenue Institutional Advisers CLO Ltd.(a)(b):
Series 2017-1A, Class A1, (LIBOR USD 3 Month + 1.22%), 3.75%, 11/14/29			280		279,344
Series 2017-1A, Class A2, (LIBOR USD 3 Month + 1.70%), 4.23%, 11/14/29			300		298,428
Progress Residential Trust(b):
Series 2015-SFR3, Class A, 3.07%, 11/12/32			198		197,862
Series 2017-SFR1, Class A, 2.77%, 08/17/34			100		100,312
Series 2018-SFR1, Class F, 4.78%, 03/17/35			100		101,988
PRPM LLC, Series 2017-1A, Class A1, 4.25%, 01/25/22(b)(e)			33		33,480
Race Point IX CLO Ltd., Series 2015-9A, Class A1AR, (LIBOR USD 3 Month + 1.21%),     3.81%, 10/15/30(a)(b)			500		500,434
Race Point X CLO Ltd., Series 2016-10A, Class A1R, (LIBOR USD 3 Month + 1.10%), 3.68%, 07/25/31(a)(b)			250		247,957
Regatta VI Funding Ltd., Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.67%, 07/20/28(a)(b)			330		329,400
Rockford Tower CLO Ltd.(a)(b):
Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.37%), 3.97%, 04/15/29			250		249,998
Series 2017-1A, Class B, (LIBOR USD 3 Month + 1.80%), 4.40%, 04/15/29			250		249,541

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Asset-Backed Securities (continued)
Series 2017-2A, Class B, (LIBOR USD 3 Month + 1.75%), 4.35%, 10/15/29	USD		250	$	248,774
Series 2017-2A, Class C, (LIBOR USD 3 Month + 2.30%), 4.90%, 10/15/29			250		246,897
Series 2017-3A, Class A, (LIBOR USD 3 Month + 1.19%), 3.78%, 10/20/30			250		249,717
Romark WM-R Ltd., Series 2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.62%, 04/20/31(a)(b)			250		247,169
RR 3 Ltd., Series 2018-3A, Class A1R2, (LIBOR USD 3 Month + 1.09%), 3.69%, 01/15/30(a)(b)			1,250		1,241,122
Securitized Asset-Backed Receivables LLC Trust(a):
Series 2006-WM4, Class A1, (LIBOR USD 1 Month + 0.19%), 2.59%, 11/25/36(b)			100		58,334
Series 2006-WM4, Class A2A, (LIBOR USD 1 Month + 0.08%), 2.48%, 11/25/36			48		18,223
Series 2006-WM4, Class A2C, (LIBOR USD 1 Month + 0.16%), 2.56%, 11/25/36			143		55,416
SG Mortgage Securities Trust, Series 2006-OPT2, Class A3D, (LIBOR USD 1 Month + 0.21%), 2.61%, 10/25/36(a)			100		81,439
Silver Creek CLO Ltd., Series 2014-1A, Class AR, (LIBOR USD 3 Month + 1.24%), 3.83%, 07/20/30(a)(b)			250		249,869
SLM Private Credit Student Loan Trust, Series 2004-B, Class A3, (LIBOR USD 3 Month + 0.33%), 2.74%, 03/15/24(a)			231		230,493
SMB Private Education Loan Trust, Series 2015-B, Class B, 3.50%, 12/17/40(b)			100		102,267
Sound Point CLO XIV Ltd., Series 2016-3A, Class A, (LIBOR USD 3 Month + 1.53%), 4.12%, 01/23/29(a)(b)			260		259,975
Sound Point CLO XV Ltd., Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.39%), 3.98%, 01/23/29(a)(b)			250		249,921
Sound Point CLO XXIII Ltd., Series 2019-2A, Class A1, (LIBOR USD 3 Month + 1.40%), 3.88%, 04/15/32(a)(b)			800		800,351
Soundview Home Loan Trust, Series 2004- WMC1, Class M2, (LIBOR USD 1 Month + 0.80%), 3.20%, 01/25/35(a)			2		1,909
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Series 2004-23XS, Class 2A1, (LIBOR USD 1 Month + 0.30%), 2.70%, 01/25/35(a)			105		103,670
Symphony CLO XII Ltd., Series 2013-12A, Class AR, (LIBOR USD 3 Month + 1.03%), 3.63%, 10/15/25(a)(b)			208		207,876
TCI-Flatiron CLO Ltd., Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.20%), 3.73%, 11/18/30(a)(b)			250		250,120
Towd Point Mortgage Trust(b):
Series 2019-HY2, Class A1, (LIBOR USD 1 Month + 1.00%), 3.40%, 05/25/58(a)			93		94,015
Series 2019-SJ2, Class A2, 4.25%, 11/25/58(d)			140		144,203
Series 2019-SJ2, Class M1, 4.50%, 11/25/58(d)			340		353,404
Tricon American Homes Trust, Series 2018-SFR1, Class E, 4.56%, 05/17/37(b)			100		104,619
Union Pacific Railroad Co. Pass-Through Trust,
Series 2014-1, 3.23%, 05/14/26			94		97,725

Security		Par         (000)		Value
Asset-Backed Securities (continued)
Venture 35 CLO Ltd., Series 2018-35A, Class AS, (LIBOR USD 3 Month + 1.15%), 3.74%, 10/22/31(a)(b)	USD		100	$	99,881
Venture XVIII CLO Ltd., Series 2014-18A, Class AR, (LIBOR USD 3 Month + 1.22%), 3.82%, 10/15/29(a)(b)			315		316,138
Vericrest Opportunity Loan Trust, Series 2019- NPL3, Class A1, 3.97%, 03/25/49(b)(e)			411		414,295
Voya CLO Ltd.(a)(b):
Series 2017-4A, Class A1, (LIBOR USD 3 Month + 1.13%), 3.73%, 10/15/30			250		249,261
Series 2019-1A, Class A, (LIBOR USD 3 Month + 1.17%), 3.81%, 04/15/29			225		225,185
Wachovia Asset Securitization Issuance II LLC Trust, Series 2007-HE2A, Class A, (LIBOR USD 1 Month + 0.13%), 2.53%, 07/25/37(a)(b)			84		78,804
WaMu Asset-Backed Certificates Trust(a):
Series 2007-HE2, Class 2A3, (LIBOR USD 1 Month + 0.25%), 2.65%, 04/25/37			538		283,329
Series 2007-HE2, Class 2A4, (LIBOR USD 1 Month + 0.36%), 2.76%, 04/25/37			34		17,993
Washington Mutual Asset-Backed CertificatesTrust(a):
Series 2006-HE4, Class 2A2, (LIBOR USD 1 Month + 0.18%), 2.58%, 09/25/36			161		75,111
Series 2006-HE5, Class 1A, (LIBOR USD 1 Month + 0.16%), 2.56%, 10/25/36			174		140,453
Series 2007-HE2, Class 2A2, (LIBOR USD 1 Month + 0.22%), 2.62%, 02/25/37			205		88,809
Wellfleet CLO Ltd., Series 2017-1A, Class A1, (LIBOR USD 3 Month + 1.32%), 3.91%, 04/20/29(a)(b)			250		249,897
Yale Mortgage Loan Trust, Series 2007-1, Class A, (LIBOR USD 1 Month + 0.40%), 2.80%, 06/25/37(a)(b)			93		39,114
York CLO-2 Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 3.74%, 01/22/31(a)(b)			250		248,539
Total Asset-Backed Securities — 8.3% (Cost: $51,205,621)					50,916,740
Corporate Bonds — 33.0%
Aerospace & Defense — 1.5%
Airbus SE, 3.95%, 04/10/47(b)			175		189,544
BAE Systems Holdings, Inc.(b):
3.80%, 10/07/24			65		68,039
3.85%, 12/15/25			215		224,744
4.75%, 10/07/44			8		8,872
Boeing Co. (The):
3.60%, 05/01/34			105		109,484
3.38%, 06/15/46			35		33,470
3.83%, 03/01/59			90		90,148
General Dynamics Corp., 3.75%, 05/15/28			160		175,129
Harris Corp.:
2.70%, 04/27/20			28		28,029
3.83%, 04/27/25			32		33,660
4.40%, 06/15/28			464		506,991
5.05%, 04/27/45			175		205,216
L3 Technologies, Inc.:
3.85%, 06/15/23			670		699,087
3.85%, 12/15/26			265		277,391
4.40%, 06/15/28			40		43,684
Lockheed Martin Corp.:
2.90%, 03/01/25			60		61,693

10 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Aerospace & Defense (continued)
3.55%, 01/15/26	USD		44	$	46,764
3.60%, 03/01/35			680		709,081
4.50%, 05/15/36			18		20,653
4.07%, 12/15/42			519		574,189
3.80%, 03/01/45			48		51,091
Northrop Grumman Corp.:
2.93%, 01/15/25			1,110		1,130,531
3.25%, 01/15/28			481		493,760
4.75%, 06/01/43			46		53,181
3.85%, 04/15/45			100		103,055
4.03%, 10/15/47			65		69,339
Raytheon Co.:
7.20%, 08/15/27			81		106,030
7.00%, 11/01/28			360		469,071
4.70%, 12/15/41			85		99,074
4.20%, 12/15/44			65		71,423
Rockwell Collins, Inc., 3.20%, 03/15/24			93		95,754
Textron, Inc.:
3.65%, 03/15/27			130		133,153
3.90%, 09/17/29			225		234,629
United Technologies Corp.:
1.95%, 11/01/21			598		593,185
4.13%, 11/16/28			540		593,245
5.40%, 05/01/35			95		114,894
6.13%, 07/15/38			225		298,406
5.70%, 04/15/40			5		6,343
4.50%, 06/01/42			306		346,192
4.15%, 05/15/45			30		32,225
3.75%, 11/01/46			33		33,640
					9,234,089
Air Freight & Logistics — 0.1%
FedEx Corp.:
3.30%, 03/15/27			26		26,657
3.90%, 02/01/35			48		48,250
3.88%, 08/01/42			623		585,124
United Parcel Service, Inc.:
2.50%, 04/01/23			18		18,194
3.40%, 03/15/29			205		216,724
4.25%, 03/15/49			15		16,455
					911,404
Airlines — 0.5%
Air Canada Pass-Through Trust(b):
Series 2015-2, Class B, 5.00%, 12/15/23			65		67,646
Series 2017-1, Class B, 3.70%, 01/15/26			1		948
Series 2017-1, Class AA, 3.30%, 01/15/30			94		94,265
American Airlines Group, Inc., 4.63%, 03/01/20(b)			103		103,644
American Airlines Pass-Through Trust:
Series 2014-1, Class B, 4.38%, 10/01/22			4		3,719
Series 2015-1, Class B, 3.70%, 05/01/23			35		35,342
Series 2015-2, Class B, 4.40%, 09/22/23			275		282,050
Series 2016-1, Class B, 5.25%, 01/15/24			200		210,659
Series 2017-1, Class B, 4.95%, 02/15/25			61		63,546
Series 2017-2, Class B, 3.70%, 10/15/25			72		71,629
Series 2016-3, Class B, 3.75%, 10/15/25			3		3,494
Series 2015-2, Class AA, 3.60%, 09/22/27			44		45,180
Series 2016-2, Class AA, 3.20%, 06/15/28			77		77,770
Series 2016-3, Class AA, 3.00%, 10/15/28			198		197,796
Series 2017-1, Class AA, 3.65%, 02/15/29			62		64,365
Series 2017-2, Class AA, 3.35%, 10/15/29			89		89,857
Continental Airlines Pass-Through Trust, Series 2012-1, Class B, 6.25%, 04/11/20			2		1,998
Delta Air Lines Pass-Through Trust, Series 2019-1, Class AA, 3.20%, 04/25/24			215		222,662

Security		Par         (000)		Value
Airlines (continued)
Delta Air Lines, Inc., 2.88%, 03/13/20	USD		871	$	872,058
Gol Finance, Inc., 7.00%, 01/31/25(b)			141		137,475
Turkish Airlines Pass-Through Trust, Series 2015-1, Class A, 4.20%, 03/15/27(b)			32		29,242
United Airlines Pass-Through Trust:
Series 2014-1, Class B, 4.75%, 04/11/22			15		15,690
Series 2014-2, Class B, 4.63%, 09/03/22			24		24,224
Series 2016-2, Class B, 3.65%, 10/07/25			13		13,116
Series 2016-1, Class B, 3.65%, 01/07/26			11		11,337
Series 2018-1, Class B, 4.60%, 03/01/26			77		80,225
Series 2015-1, Class AA, 3.45%, 12/01/27			39		40,342
Series 2016-1, Class AA, 3.10%, 07/07/28			13		12,952
Series 2016-2, Class AA, 2.88%, 10/07/28			82		81,140
Series 2018-1, Class AA, 3.50%, 03/01/30			39		40,167
Series 2019-1, Class AA, 4.15%, 08/25/31			125		134,126
US Airways Pass-Through Trust:
Series 2012-2, Class B, 6.75%, 06/03/21			7		7,410
Series 2013-1, Class B, 5.38%, 11/15/21			26		27,173
					3,163,247
Auto Components — 0.0%
Aptiv plc, 4.25%, 01/15/26			57		59,946
Automobiles — 0.4%
BMW US Capital LLC, 2.80%, 04/11/26(b)			94		94,721
Daimler Finance North America LLC(b):
3.10%, 05/04/20			340		341,810
2.30%, 02/12/21			150		149,418
3.35%, 05/04/21			430		436,049
3.75%, 11/05/21			150		153,825
General Motors Co.:
6.60%, 04/01/36			120		132,840
6.25%, 10/02/43			55		58,548
6.75%, 04/01/46			60		67,717
5.40%, 04/01/48			35		34,212
Hyundai Capital America(b):
2.55%, 04/03/20			786		786,982
3.95%, 02/01/22			305		312,796
					2,568,918
Banks — 7.4%
ABN AMRO Bank NV, 2.65%, 01/19/21(b)			275		275,944
Banco Santander SA:
3.85%, 04/12/23			200		207,620
2.71%, 06/27/24			200		200,380
3.31%, 06/27/29			200		201,406
Bank of America Corp.:
2.63%, 10/19/20			175		175,689
(LIBOR USD 3 Month + 0.66%), 2.37%, 07/21/21(a)			485		484,471
(LIBOR USD 3 Month + 0.63%), 2.33%, 10/01/21(a)			1,835		1,832,780
(LIBOR USD 3 Month + 0.63%), 3.50%, 05/17/22(a)			280		285,396
3.30%, 01/11/23			92		94,831
(LIBOR USD 3 Month + 0.93%), 2.82%, 07/21/23(a)			370		373,699
4.00%, 04/01/24			115		122,546
4.00%, 01/22/25			71		74,678
(LIBOR USD 3 Month + 0.97%), 3.46%, 03/15/25(a)			205		212,802
Series L, 3.95%, 04/21/25			142		148,897
4.45%, 03/03/26			437		471,367
3.50%, 04/19/26			220		230,380
Series L, 4.18%, 11/25/27			98		103,819

SCHEDULE OF INVESTMENTS 11

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Banks (continued)
(LIBOR USD 3 Month + 1.58%), 3.82%, 01/20/28(a)	USD		660	$	698,642
Series FF, (LIBOR USD 3 Month + 2.93%), 5.87%(a)(f)			580		605,404
(LIBOR USD 3 Month + 1.51%), 3.71%, 04/24/28(a)			955		1,003,420
(LIBOR USD 3 Month + 1.04%), 3.42%, 12/20/28(a)			1,480		1,522,914
(LIBOR USD 3 Month + 1.21%), 3.97%, 02/07/30(a)			50		53,595
Bank of Montreal:
Series D, 3.10%, 04/13/21			21		21,324
1.90%, 08/27/21			10		9,937
2.90%, 03/26/22			67		68,025
Barclays plc:
(LIBOR USD 3 Month + 1.90%), 4.97%, 05/16/29(a) 4.95%, 01/10/47			380 200		405,301 211,664
BNP Paribas SA(b):
(USD Swap Semi 5 Year + 6.31%), 7.63%(a)(f)			455		481,731
3.50%, 03/01/23			200		205,733
(LIBOR USD 3 Month + 2.24%), 4.70%, 01/10/25(a)			400		429,172
(USD Swap Semi 5 Year + 5.15%), 7.38%(a)(f)			410		455,613
(USD Swap Semi 5 Year + 3.98%), 7.00%(a)(f)			400		427,000
Citibank NA:
(LIBOR USD 3 Month + 0.53%), 3.16%, 02/19/22(a)			365		369,569
(LIBOR USD 3 Month + 0.60%), 2.84%, 05/20/22(a)			455		458,472
3.65%, 01/23/24			1,015		1,068,686
Citigroup, Inc.:
2.50%, 07/29/19			453		453,046
2.75%, 04/25/22			2		2,018
(LIBOR USD 3 Month + 0.90%), 3.35%, 04/24/25(a)			55		56,814
4.40%, 06/10/25			425		453,579
4.45%, 09/29/27			245		263,964
(LIBOR USD 3 Month + 1.56%), 3.89%, 01/10/28(a)			695		735,287
(LIBOR USD 3 Month + 1.39%), 3.67%, 07/24/28(a)			690		720,092
(LIBOR USD 3 Month + 1.17%), 3.88%, 01/24/39(a)			4		4,152
4.65%, 07/23/48			7		8,145
Citizens Bank NA, 2.25%, 03/02/20			544		543,516
Cooperatieve Rabobank UA, (LIBOR USD 3 Month + 10.87%), 11.00%(a)(b)(f)			830		830,000
Credit Agricole SA, (USD Swap Semi 5 Year + 6.19%), 8.12%(a)(b)(f)			450		520,418
Danske Bank A/S(b): 5.00%, 01/12/22			400		418,419
5.38%, 01/12/24			400		432,347
Fifth Third Bancorp, 3.65%, 01/25/24			100		105,081
HSBC Holdings plc:
5.10%, 04/05/21			200		208,986
(USD Swap Rate 5 Year + 3.75%), 6.00%(a)(f)			380		388,550
(LIBOR USD 3 Month + 1.55%), 4.04%, 03/13/28(a)			660		693,302
(USD Swap Rate 5 Year + 3.61%), 6.50%(a)(f)			270		283,036
(LIBOR USD 3 Month + 1.61%), 3.97%, 05/22/30(a)			200		208,911
HSBC USA, Inc., 2.35%, 03/05/20			655		655,026
ING Groep NV:
3.15%, 03/29/22			230		234,346

Security		Par         (000)		Value
Banks (continued)
4.10%, 10/02/23	USD		455	$	480,654
3.55%, 04/09/24			400		413,776
JPMorgan Chase & Co.:
2.20%, 10/22/19			370		369,877
2.55%, 03/01/21			305		306,065
4.63%, 05/10/21			187		194,666
(LIBOR USD 3 Month + 0.61%), 3.51%, 06/18/22(a)			250		255,491
2.97%, 01/15/23			370		375,370
3.20%, 01/25/23			370		379,676
(LIBOR USD 3 Month + 0.70%), 3.21%, 04/01/23(a)			1,206		1,230,830
2.70%, 05/18/23			85		85,872
(LIBOR USD 3 Month + 0.73%), 3.56%, 04/23/24(a)			85		88,126
3.63%, 05/13/24			156		164,331
(LIBOR USD 3 Month + 0.89%), 3.80%, 07/23/24(a)			431		452,014
(LIBOR USD 3 Month + 1.00%), 4.02%, 12/05/24(a)			766		814,098
4.13%, 12/15/26			75		80,217
(LIBOR USD 3 Month + 1.34%), 3.78%, 02/01/28(a)			1,345		1,425,848
(LIBOR USD 3 Month + 1.38%), 3.54%, 05/01/28(a)			1,235		1,285,511
(LIBOR USD 3 Month + 0.95%), 3.51%, 01/23/29(a)			53		55,101
(LIBOR USD 3 Month + 1.12%), 4.01%, 04/23/29(a)			46		49,621
(LIBOR USD 3 Month + 1.26%), 4.20%, 07/23/29(a)			470		513,880
(LIBOR USD 3 Month + 1.33%), 4.45%, 12/05/29(a)			3		3,345
(LIBOR USD 3 Month + 1.16%), 3.70%, 05/06/30(a)			15		15,816
(LIBOR USD 3 Month + 1.36%), 3.88%, 07/24/38(a)			95		99,581
KeyBank NA, 3.38%, 03/07/23			250		259,120
KeyCorp, 4.15%, 10/29/25			110		119,169
Lloyds Banking Group plc, 3.75%, 01/11/27			310		315,628
Mitsubishi UFJ Financial Group, Inc.:
3.54%, 07/26/21			35		35,787
3.00%, 02/22/22			85		86,332
3.46%, 03/02/23			935		961,271
3.41%, 03/07/24			435		451,465
3.29%, 07/25/27			70		72,310
4.05%, 09/11/28			85		93,213
Mizuho Financial Group, Inc.:
2.27%, 09/13/21			200		199,354
2.95%, 02/28/22			1,183		1,196,586
Nordea Bank Abp(b):
2.13%, 05/29/20			310		309,337
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.11%), 6.63%(a)(f)			310		327,050
Royal Bank of Scotland Group plc(a):
(LIBOR USD 3 Month + 1.48%), 3.50%, 05/15/23			200		202,228
(LIBOR USD 3 Month + 1.91%), 5.08%, 01/27/30			200		216,987
Santander UK Group Holdings plc, 2.88%, 08/05/21			635		635,362
Santander UK plc, 5.00%, 11/07/23(b)			550		580,056

12 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Banks (continued)
Standard Chartered plc(a)(b):
(LIBOR USD 3 Month + 1.15%), 4.25%, 01/20/23	USD		345	$	355,944
(LIBOR USD 3 Month + 1.56%), 3.79%, 05/21/25			325		331,800
Sumitomo Mitsui Trust Bank Ltd., 1.95%, 09/19/19(b)			555		554,373
SunTrust Banks, Inc., 2.80%, 05/17/22			185		187,356
Svenska Handelsbanken AB, 2.40%, 10/01/20			250		250,305
Toronto-Dominion Bank (The):
1.80%, 07/13/21			166		164,787
3.50%, 07/19/23			116		121,698
UBS Group Funding Switzerland AG(b):
2.95%, 09/24/20			205		206,363
(LIBOR USD 3 Month + 0.95%), 2.86%, 08/15/23(a)			510		514,458
(USD Swap Semi 5 Year + 4.34%), 7.00%(a)(f)			490		520,537
4.13%, 09/24/25			470		501,616
US Bancorp:
2.95%, 07/15/22			190		194,005
3.10%, 04/27/26			70		71,513
US Bank NA, (LIBOR USD 3 Month + 0.29%),
3.10%, 05/21/21(a)			265		266,868
Washington Mutual Escrow Bonds(c)(g)(h):
0.00%, 11/06/09			300		—
0.00%, 09/19/17			250		—
0.00%, 09/29/17			500		—
Wells Fargo & Co.:
2.60%, 07/22/20			77		77,253
2.55%, 12/07/20			95		95,266
3.00%, 01/22/21			370		373,371
2.50%, 03/04/21			475		476,036
3.50%, 03/08/22			255		262,369
2.63%, 07/22/22			470		473,393
3.75%, 01/24/24			860		904,170
3.00%, 10/23/26			70		70,724
(LIBOR USD 3 Month + 1.31%), 3.58%, 05/22/28(a)			625		652,546
Wells Fargo Bank NA, (LIBOR USD 3 Month + 0.49%), 3.33%, 07/23/21(a)			540		545,161
					45,584,875
Beverages — 0.5%
Anheuser-Busch Cos. LLC:
4.70%, 02/01/36			1,185		1,299,910
4.90%, 02/01/46			240		267,223
Anheuser-Busch InBev Worldwide, Inc.:
4.75%, 01/23/29			1,030		1,169,263
3.75%, 07/15/42			30		28,592
Keurig Dr Pepper, Inc.:
3.55%, 05/25/21			95		97,047
4.06%, 05/25/23			140		146,983
PepsiCo, Inc.:
3.45%, 10/06/46			125		128,527
4.00%, 05/02/47			160		180,159
					3,317,704
Biotechnology — 0.5%
AbbVie, Inc.:
2.30%, 05/14/21			112		111,323
4.50%, 05/14/35			570		588,008
4.88%, 11/14/48			50		52,625
Amgen, Inc., 4.40%, 05/01/45			387		411,119
Baxalta, Inc., 5.25%, 06/23/45			36		43,300
Celgene Corp.: 2.75%, 02/15/23			305		307,706

Security		Par         (000)		Value
Biotechnology (continued)
3.25%, 02/20/23	USD		575	$	589,421
3.63%, 05/15/24			3		3,149
Gilead Sciences, Inc.:
2.55%, 09/01/20			250		250,736
3.50%, 02/01/25			395		414,474
4.60%, 09/01/35			117		131,692
4.00%, 09/01/36			126		132,810
4.80%, 04/01/44			49		55,674
					3,092,037
Building Products — 0.1%
Holcim US Finance SARL & Cie SCS, 5.15%, 09/12/23(b)			240		257,403
Johnson Controls International plc:
4.63%, 07/02/44			80		82,490
5.13%, 09/14/45			7		7,646
					347,539
Capital Markets — 2.0%
ARI Investments LLC, (LIBOR USD 1 Month + 2.90%), 5.32%, 01/06/25(a)(c)			848		848,338
Bank of New York Mellon Corp. (The):
Series E, (LIBOR USD 3 Month + 3.42%), 4.95%(a)(f)			200		203,152
3.40%, 05/15/24			25		26,126
(LIBOR USD 3 Month + 1.07%), 3.44%, 02/07/28(a)			279		290,512
Charles Schwab Corp. (The), 3.20%, 03/02/27			140		144,197
CME Group, Inc.:
3.00%, 09/15/22			2		2,053
3.75%, 06/15/28			10		10,897
Credit Suisse Group AG(a)(b):
(USD Swap Semi 5 Year + 4.60%), 7.50%(f)			500		534,035
(LIBOR USD 3 Month + 1.20%), 3.00%, 12/14/23			610		615,192
(LIBOR USD 3 Month + 1.24%), 4.21%, 06/12/24			325		341,027
(USD Swap Semi 5 Year + 4.33%), 7.25%(f)			500		537,500
Deutsche Bank AG:
2.70%, 07/13/20			422		420,210
2.95%, 08/20/20			100		99,279
4.25%, 02/04/21			155		156,370
4.25%, 10/14/21			130		131,791
Goldman Sachs Group, Inc. (The):
2.55%, 10/23/19			750		750,278
2.75%, 09/15/20			65		65,271
5.25%, 07/27/21			14		14,797
2.35%, 11/15/21			498		497,504
5.75%, 01/24/22			30		32,424
(LIBOR USD 3 Month + 1.05%), 2.91%, 06/05/23(a)			115		116,237
(LIBOR USD 3 Month + 0.99%), 2.90%, 07/24/23(a)			22		22,213
3.75%, 05/22/25			22		23,011
(LIBOR USD 3 Month + 1.17%), 3.69%, 05/15/26(a)			230		226,781
3.50%, 11/16/26			55		56,357
3.85%, 01/26/27			455		475,564
(LIBOR USD 3 Month + 1.51%), 3.69%, 06/05/28(a)			545		562,858
(LIBOR USD 3 Month + 1.30%), 4.22%, 05/01/29(a)			120		128,701
(LIBOR USD 3 Month + 1.37%), 4.02%, 10/31/38(a)			140		144,596
(LIBOR USD 3 Month + 1.43%), 4.41%, 04/23/39(a)			35		37,863

SCHEDULE OF INVESTMENTS 13

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Capital Markets (continued)
Intercontinental Exchange, Inc.:
2.75%, 12/01/20	USD		11	$	11,071
2.35%, 09/15/22			2		2,002
4.00%, 10/15/23			8		8,509
3.75%, 12/01/25			176		187,987
3.10%, 09/15/27			17		17,430
3.75%, 09/21/28			240		258,711
4.25%, 09/21/48			45		50,198
Morgan Stanley:
2.75%, 05/19/22			710		717,449
3.70%, 10/23/24			210		221,556
6.25%, 08/09/26			283		339,592
3.63%, 01/20/27			965		1,012,802
(LIBOR USD 3 Month + 1.34%), 3.59%, 07/22/28(a)			980		1,020,425
(LIBOR USD 3 Month + 1.14%), 3.77%, 01/24/29(a)			545		571,782
Northern Trust Corp., (LIBOR USD 3 Month + 1.13%), 3.38%, 05/08/32(a)			80		80,683
Nuveen LLC, 4.00%, 11/01/28(b)			110		120,699
State Street Corp.:
(LIBOR USD 3 Month + 0.77%),
3.78%, 12/03/24(a)			70		73,777
2.65%, 05/19/26			152		152,255
					12,362,062
Chemicals — 0.5%
Cydsa SAB de CV, 6.25%, 10/04/27(b)			300		300,094
Dow Chemical Co. (The):
9.00%, 04/01/21			135		149,817
3.00%, 11/15/22			85		86,171
3.15%, 05/15/24(b)			160		163,183
4.55%, 11/30/25(b)			85		92,591
3.63%, 05/15/26(b)			155		160,733
4.38%, 11/15/42			126		127,439
4.63%, 10/01/44			125		128,698
DuPont de Nemours, Inc.:
4.49%, 11/15/25			814		900,739
5.42%, 11/15/48			540		656,162
Sherwin-Williams Co. (The):
4.00%, 12/15/42			20		19,396
4.50%, 06/01/47			75		79,995
					2,865,018
Commercial Services & Supplies — 0.3%
RELX Capital, Inc.:
3.50%, 03/16/23			355		366,611
4.00%, 03/18/29			245		259,307
Republic Services, Inc.:
4.75%, 05/15/23			305		329,228
2.90%, 07/01/26			131		131,698
3.38%, 11/15/27			40		41,357
3.95%, 05/15/28			215		231,931
Waste Management, Inc.:
3.13%, 03/01/25			40		41,337
3.20%, 06/15/26			5		5,201
3.45%, 06/15/29			5		5,270
3.90%, 03/01/35			171		182,759
4.00%, 07/15/39			210		224,995
4.10%, 03/01/45			50		54,563
4.15%, 07/15/49			105		114,686
					1,988,943

Security		Par         (000)		Value
Communications Equipment — 0.0%
Cisco Systems, Inc., 2.95%, 02/28/26	USD		95	$	97,939
Juniper Networks, Inc., 3.30%, 06/15/20			63		63,370
					161,309
Construction Materials — 0.0%
Cemex SAB de CV, 3.72%, 03/15/20(i)			24		23,962
Consumer Finance — 1.1%
American Express Co.:
2.50%, 08/01/22			100		100,635
3.70%, 08/03/23			195		204,694
3.40%, 02/22/24			70		73,029
4.20%, 11/06/25			150		163,827
3.13%, 05/20/26			455		467,255
American Express Credit Corp.:
2.25%, 08/15/19			177		176,960
2.25%, 05/05/21			45		45,013
Capital One Financial Corp.:
4.75%, 07/15/21			14		14,635
3.90%, 01/29/24			557		585,375
3.75%, 03/09/27			250		258,075
Discover Financial Services, 4.10%, 02/09/27			104		108,333
Ford Motor Credit Co. LLC:
3.20%, 01/15/21			200		200,619
5.75%, 02/01/21			430		447,621
3.22%, 01/09/22			1,070		1,070,401
2.98%, 08/03/22			235		232,508
3.10%, 05/04/23			400		394,147
5.58%, 03/18/24			325		348,848
General Motors Financial Co., Inc.:
4.20%, 11/06/21			152		156,512
4.00%, 01/15/25			333		338,005
4.30%, 07/13/25			80		82,460
4.00%, 10/06/26			37		37,309
Hyundai Capital Services, Inc., 3.00%, 08/29/22(b)			250		250,391
Synchrony Financial:
2.70%, 02/03/20			48		48,004
4.38%, 03/19/24			95		99,478
Tarjeta Naranja SA, (Argentina Deposit Rates Badlar Private Banks ARS 30 to 35 Days + 3.50%), 18.49%, 04/11/22(a)(b)			108		36,961
Toyota Motor Credit Corp.:
2.75%, 05/17/21			465		470,726
3.05%, 01/11/28			103		106,259
					6,518,080
Containers & Packaging — 0.0%
International Paper Co., 6.00%, 11/15/41			180		210,991
Diversified Consumer Services — 0.1%
American University (The), 3.67%, 04/01/49			265		274,080
George Washington University (The), Series 2018, 4.13%, 09/15/48			112		125,774
President & Fellows of Harvard College, 5.63%, 10/01/38			229		306,488
University of Notre Dame du Lac, Series 2017, 3.39%, 02/15/48			85		87,308
University of Southern California, 3.03%, 10/01/39			75		73,370
Wesleyan University, 4.78%, 07/01/2116			45		50,693
					917,713
Diversified Financial Services — 0.2%
AXA Equitable Holdings, Inc.:
3.90%, 04/20/23			30		31,256
5.00%, 04/20/48			65		67,070

14 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Diversified Financial Services (continued)
GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/35	USD		400	$	395,903
ORIX Corp., 2.90%, 07/18/22			155		157,360
Shell International Finance BV:
3.25%, 05/11/25			125		131,148
4.13%, 05/11/35			316		351,281
3.63%, 08/21/42			44		45,413
4.55%, 08/12/43			145		169,841
Woodside Finance Ltd., 3.65%, 03/05/25(b)			16		16,422
					1,365,694
Diversified Telecommunication Services — 1.3%
AT&T, Inc.:
0.00%, 11/27/22(b)(j)			1,000		913,159
3.40%, 05/15/25			95		97,660
3.60%, 07/15/25			50		51,862
4.13%, 02/17/26			60		63,825
4.30%, 02/15/30			895		957,933
4.50%, 05/15/35			248		259,608
4.90%, 08/15/37			16		17,245
6.00%, 08/15/40			274		325,653
4.30%, 12/15/42			30		29,666
4.65%, 06/01/44			55		56,755
4.35%, 06/15/45			567		566,816
4.85%, 07/15/45			246		262,905
5.15%, 02/15/50			177		195,427
CC Holdings GS V LLC, 3.85%, 04/15/23			85		88,805
Deutsche Telekom International Finance BV, 3.60%, 01/19/27(b)			225		230,666
Verizon Communications, Inc.:
2.63%, 08/15/26			7		6,955
4.13%, 03/16/27			1,804		1,962,007
4.50%, 08/10/33			340		383,033
4.27%, 01/15/36			1,270		1,375,540
5.25%, 03/16/37			35		41,865
4.81%, 03/15/39			30		34,489
4.13%, 08/15/46			95		99,169
4.86%, 08/21/46			50		58,214
4.67%, 03/15/55			169		191,641
					8,270,898
Electric Utilities — 2.7%
AEP Texas, Inc.:
3.95%, 06/01/28			394		421,121
Series G, 4.15%, 05/01/49			4		4,328
AEP Transmission Co. LLC:
3.75%, 12/01/47			40		41,086
4.25%, 09/15/48			170		186,546
Alabama Power Co.:
4.15%, 08/15/44			180		194,170
3.75%, 03/01/45			150		154,109
Series A, 4.30%, 07/15/48			155		173,772
Alliant Energy Finance LLC, 3.75%, 06/15/23(b)			65		67,505
Appalachian Power Co., 4.60%, 03/30/21			170		175,483
Baltimore Gas & Electric Co.:
2.80%, 08/15/22			370		374,721
3.50%, 08/15/46			86		84,955
3.75%, 08/15/47			85		86,817
4.25%, 09/15/48			185		205,103
CenterPoint Energy Houston Electric LLC:
3.55%, 08/01/42			20		20,049
3.95%, 03/01/48			140		149,497
Commonwealth Edison Co., 2.55%, 06/15/26			72		71,614
Dayton Power & Light Co. (The), 3.95%, 06/15/49(b)			178		182,897
DTE Electric Co., Series A, 4.05%, 05/15/48			275		304,214

Security		Par         (000)		Value
Electric Utilities (continued)
Duke Energy Carolinas LLC:
3.35%, 05/15/22	USD		2	$	2,068
3.05%, 03/15/23			45		46,245
3.95%, 11/15/28			230		250,372
5.30%, 02/15/40			75		93,465
3.88%, 03/15/46			95		99,732
3.70%, 12/01/47			140		143,030
3.95%, 03/15/48			95		100,219
Duke Energy Florida LLC:
3.80%, 07/15/28			100		107,740
6.40%, 06/15/38			165		231,004
3.40%, 10/01/46			90		87,871
Duke Energy Ohio, Inc., 3.65%, 02/01/29			425		456,239
Duke Energy Progress LLC:
3.00%, 09/15/21			75		76,249
3.25%, 08/15/25			162		168,333
3.70%, 09/01/28			400		428,212
3.45%, 03/15/29			45		47,444
4.10%, 03/15/43			105		112,529
4.20%, 08/15/45			88		96,834
3.60%, 09/15/47			10		9,980
Entergy Corp., 2.95%, 09/01/26			45		45,074
Entergy Louisiana LLC:
5.40%, 11/01/24			65		74,868
4.20%, 09/01/48			185		204,628
4.20%, 04/01/50			45		49,951
Eversource Energy:
2.80%, 05/01/23			140		141,621
Series N, 3.80%, 12/01/23			17		17,938
Exelon Corp.:
4.95%, 06/15/35			48		53,713
4.45%, 04/15/46			60		63,851
FirstEnergy Transmission LLC(b):
4.35%, 01/15/25			489		524,835
4.55%, 04/01/49			180		196,855
Florida Power & Light Co.: (LIBOR USD 3 Month + 0.40%),
2.97%, 05/06/22(a)			1,095		1,095,496
4.05%, 06/01/42			29		31,691
3.70%, 12/01/47			25		26,060
3.95%, 03/01/48			250		273,608
4.13%, 06/01/48			150		168,338
Indiana Michigan Power Co., Series J,
3.20%, 03/15/23			750		770,084
Kansas City Power & Light Co.:
3.15%, 03/15/23			750		772,089
4.20%, 03/15/48			235		257,341
MidAmerican Energy Co., 4.40%, 10/15/44			161		183,306
Mid-Atlantic Interstate Transmission LLC,
4.10%, 05/15/28(b)			56		59,622
Northern States Power Co.:
2.15%, 08/15/22			370		369,796
3.40%, 08/15/42			245		242,225
4.00%, 08/15/45			100		106,533
4.20%, 09/01/48			65		70,388
NSTAR Electric Co., 3.20%, 05/15/27			46		47,383
Ohio Power Co.:
Series G, 6.60%, 02/15/33			140		190,123
4.00%, 06/01/49			115		123,891
Oklahoma Gas & Electric Co., 3.30%, 03/15/30			385		390,962
Oncor Electric Delivery Co. LLC:
3.70%, 11/15/28(b)			225		242,303
4.55%, 12/01/41			120		139,637
3.80%, 09/30/47			175		183,013

SCHEDULE OF INVESTMENTS 15

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Electric Utilities (continued)
PacifiCorp:
4.10%, 02/01/42	USD		290	$	311,185
4.13%, 01/15/49			60		66,185
Public Service Co. of Colorado, 2.50%, 03/15/23			750		752,060
Public Service Electric & Gas Co.:
3.00%, 05/15/27			38		38,682
3.65%, 09/01/28			210		225,123
3.20%, 05/15/29			40		41,391
Southern California Edison Co., 3.88%, 06/01/21			87		88,653
Southwestern Electric Power Co., Series M, 4.10%, 09/15/28			105		113,162
Southwestern Public Service Co., 3.75%, 06/15/49			45		45,438
Stoneway Capital Corp., 10.00%, 03/01/27(b)			139		130,670
Tampa Electric Co.:
4.30%, 06/15/48			30		32,135
4.45%, 06/15/49			185		206,317
Trans-Allegheny Interstate Line Co., 3.85%, 06/01/25(b)			250		264,289
Union Electric Co., 3.50%, 03/15/29			170		180,113
Virginia Electric & Power Co.:
Series C, 2.75%, 03/15/23			210		212,980
3.45%, 02/15/24			93		96,889
Series A, 3.50%, 03/15/27			281		296,102
4.00%, 01/15/43			170		179,606
4.45%, 02/15/44			44		49,701
Series B, 4.20%, 05/15/45			93		100,741
Series C, 4.00%, 11/15/46			237		250,284
Vistra Operations Co. LLC, 4.30%, 07/15/29(b)			205		207,821
					16,462,303
Electronic Equipment, Instruments & Components — 0.0%
Amphenol Corp., 3.20%, 04/01/24			101		103,503
Corning, Inc.:
3.70%, 11/15/23			35		36,496
4.38%, 11/15/57			75		72,935
Tyco Electronics Group SA:
3.45%, 08/01/24			30		31,150
3.13%, 08/15/27			65		65,137
					309,221
Energy Equipment & Services — 0.2%
Halliburton Co.:
3.80%, 11/15/25			890		933,193
5.00%, 11/15/45			39		42,550
Odebrecht Drilling Norbe VIII/IX Ltd., 6.35%, 12/01/21(b)			34		33,743
Odebrecht Offshore Drilling Finance Ltd., 6.72%, 12/01/22(b)			25		24,213
Schlumberger Holdings Corp., 3.90%, 05/17/28(b)			390		405,846
					1,439,545
Entertainment — 0.2%
NBCUniversal Media LLC:
6.40%, 04/30/40			3		4,059
5.95%, 04/01/41			170		223,252
4.45%, 01/15/43			201		221,584
TWDC Enterprises 18 Corp., 3.70%, 12/01/42			35		37,046
Viacom, Inc., 6.88%, 04/30/36			110		139,374
Walt Disney Co. (The)(b):
6.20%, 12/15/34			27		36,608
6.40%, 12/15/35			192		261,803
6.15%, 03/01/37			195		264,929

Security		Par         (000)		Value
Entertainment (continued)
6.65%, 11/15/37	USD		38	$	54,602
6.90%, 08/15/39			10		14,738
Warner Media LLC, 7.63%, 04/15/31			80		106,688
					1,364,683
Equity Real Estate Investment Trusts (REITs) — 0.1%
American Tower Corp.:
3.00%, 06/15/23			12		12,116
3.38%, 05/15/24			106		109,042
3.13%, 01/15/27			16		15,873
Crown Castle International Corp.:
3.40%, 02/15/21			3		3,041
4.88%, 04/15/22			16		17,011
3.20%, 09/01/24			365		372,737
3.70%, 06/15/26			155		160,969
4.00%, 03/01/27			27		28,338
4.30%, 02/15/29			60		64,836
Realty Income Corp., 4.13%, 10/15/26			120		129,697
					913,660
Food & Staples Retailing — 0.3%
Kroger Co. (The), 2.65%, 10/15/26			250		240,956
Walgreens Boots Alliance, Inc.:
3.45%, 06/01/26			780		787,435
4.80%, 11/18/44			8		8,037
Walmart, Inc.:
3.55%, 06/26/25			160		170,959
3.70%, 06/26/28			265		289,184
3.25%, 07/08/29			90		94,887
3.95%, 06/28/38			255		284,025
4.00%, 04/11/43			100		109,960
					1,985,443
Food Products — 0.1%
Campbell Soup Co., 8.88%, 05/01/21			100		110,339
Mondelez International, Inc., 4.00%, 02/01/24			22		23,223
Tyson Foods, Inc.:
4.00%, 03/01/26			75		79,769
3.55%, 06/02/27			170		175,812
4.55%, 06/02/47			25		26,148
5.10%, 09/28/48			25		28,238
					443,529
Gas Utilities — 0.0%
Atmos Energy Corp., 4.15%, 01/15/43			85		91,906
Dominion Energy Gas Holdings LLC:
4.80%, 11/01/43			45		50,742
4.60%, 12/15/44			65		72,701
					215,349
Health Care Equipment & Supplies — 0.4%
Abbott Laboratories, 3.75%, 11/30/26			886		957,940
Baxter International, Inc., 1.70%, 08/15/21			20		19,759
Becton Dickinson and Co.:
2.68%, 12/15/19			221		221,070
3.30%, 03/01/23			170		171,924
4.69%, 12/15/44			24		26,623
Edwards Lifesciences Corp., 4.30%, 06/15/28			55		59,459
Medtronic, Inc.:
3.50%, 03/15/25			340		360,616
4.38%, 03/15/35			600		690,744
					2,508,135
Health Care Providers & Services — 1.2%
Aetna, Inc.:
4.50%, 05/15/42			263		260,515
4.13%, 11/15/42			32		29,938
4.75%, 03/15/44			60		61,163

16 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Health Care Providers & Services (continued)
Anthem, Inc.:
3.70%, 08/15/21	USD		136	$	139,134
3.50%, 08/15/24			68		70,618
3.65%, 12/01/27			15		15,593
Baylor Scott & White Holdings, 4.19%, 11/15/45			40		43,979
CHRISTUS Health, Series C, 4.34%, 07/01/28			113		125,560
Cigna Corp.(b):
3.20%, 09/17/20			10		10,093
4.38%, 10/15/28			340		366,814
4.80%, 08/15/38			3		3,233
Cigna Holding Co., 3.25%, 04/15/25			316		321,330
CommonSpirit Health, 4.35%, 11/01/42			30		30,162
CVS Health Corp.:
3.70%, 03/09/23			522		539,824
5.13%, 07/20/45			718		765,686
Dignity Health:
2.64%, 11/01/19			86		85,907
3.81%, 11/01/24			80		84,257
Express Scripts Holding Co.:
3.90%, 02/15/22			145		149,831
3.05%, 11/30/22			9		9,139
HCA, Inc.:
5.88%, 03/15/22			320		349,747
4.75%, 05/01/23			299		320,050
5.00%, 03/15/24			190		206,993
5.25%, 04/15/25			500		553,979
5.25%, 06/15/26			3		3,321
4.13%, 06/15/29			145		149,057
Kaiser Foundation Hospitals, 3.50%, 04/01/22			94		97,270
Laboratory Corp. of America Holdings, 2.63%, 02/01/20			63		63,039
Montefiore Obligated Group, Series 18-C, 5.25%, 11/01/48			114		126,452
Ochsner Clinic Foundation, 5.90%, 05/15/45			32		41,784
PeaceHealth Obligated Group, Series 2018, 4.79%, 11/15/48			16		19,330
Providence St. Joseph Health Obligated Group, Series A, 3.93%, 10/01/48			77		80,623
SSM Health Care Corp., Series 2018, 3.69%, 06/01/23			309		322,153
Sutter Health, Series 2018, 3.70%, 08/15/28			104		111,017
Toledo Hospital (The), 5.75%, 11/15/38			177		204,735
UnitedHealth Group, Inc.:
3.75%, 07/15/25			685		731,614
3.70%, 12/15/25			30		31,950
3.10%, 03/15/26			90		92,691
3.45%, 01/15/27			90		94,697
2.95%, 10/15/27			70		71,187
4.63%, 07/15/35			16		18,388
5.80%, 03/15/36			15		19,232
4.63%, 11/15/41			125		142,494
4.75%, 07/15/45			12		14,213
3.75%, 10/15/47			108		110,698
4.45%, 12/15/48			66		76,001
					7,165,491
Hotels, Restaurants & Leisure — 0.1%
McDonald’s Corp.:
3.70%, 01/30/26			120		127,567
3.50%, 03/01/27			87		91,367
6.30%, 03/01/38			35		45,586
3.70%, 02/15/42			65		63,546
3.63%, 05/01/43			113		108,703
4.88%, 12/09/45			282		323,753

Security		Par         (000)		Value
Hotels, Restaurants & Leisure (continued)
4.45%, 03/01/47	USD		90	$	98,696
					859,218
Household Products — 0.0%
Clorox Co. (The), 3.10%, 10/01/27			45		46,071
Independent Power and Renewable Electricity Producers — 0.0%
NRG Energy, Inc.(b):
3.75%, 06/15/24			19		19,520
4.45%, 06/15/29			85		88,441
					107,961
Industrial Conglomerates — 0.1%
3M Co., 3.38%, 03/01/29			275		289,835
General Electric Co.:
4.13%, 10/09/42			410		377,626
4.50%, 03/11/44			16		15,523
Honeywell International, Inc., 3.81%, 11/21/47			55		58,683
					741,667
Insurance — 0.6%
Ambac Assurance Corp., 5.10%, 06/07/20(b)			15		21,006
Ambac LSNI LLC, (LIBOR USD 3 Month + 5.00%), 7.32%, 02/12/23(a)(b)			99		100,320
American International Group, Inc., 3.88%, 01/15/35			25		24,899
Aon Corp.:
4.50%, 12/15/28			480		528,296
3.75%, 05/02/29			260		270,984
Aon plc, 4.75%, 05/15/45			50		55,868
Berkshire Hathaway Finance Corp., 4.25%, 01/15/49			60		67,536
Hartford Financial Services Group, Inc. (The), 4.30%, 04/15/43			35		37,006
Marsh & McLennan Cos., Inc.:
3.50%, 12/29/20			108		109,802
4.05%, 10/15/23			105		110,792
3.50%, 06/03/24			316		329,495
3.50%, 03/10/25			135		140,365
3.75%, 03/14/26			11		11,607
4.38%, 03/15/29			297		327,679
4.35%, 01/30/47			28		30,361
4.20%, 03/01/48			150		158,422
MetLife, Inc., 4.13%, 08/13/42			25		26,965
Principal Financial Group, Inc., 3.70%, 05/15/29			105		109,753
Prudential Financial, Inc., 3.88%, 03/27/28			240		260,917
Travelers Cos., Inc. (The):
6.75%, 06/20/36			35		49,825
6.25%, 06/15/37			2		2,754
4.60%, 08/01/43			93		110,191
4.10%, 03/04/49			22		24,838
Trinity Acquisition plc, 4.40%, 03/15/26			80		85,091
Willis North America, Inc., 3.60%, 05/15/24			401		414,201
					3,408,973
Internet & Direct Marketing Retail — 0.1%
Alibaba Group Holding Ltd., 3.60%, 11/28/24			220		228,991
Amazon.com, Inc., 3.88%, 08/22/37			275		303,221
					532,212
IT Services — 0.8%
Fidelity National Information Services, Inc.:
3.63%, 10/15/20			7		7,103
5.00%, 10/15/25			115		129,102
3.00%, 08/15/26			530		536,278
3.75%, 05/21/29			15		15,935
4.50%, 08/15/46			38		40,041
4.75%, 05/15/48			160		178,583

SCHEDULES OF INVESTMENTS 17

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
IT Services (continued)
Fiserv, Inc.:
3.85%, 06/01/25	USD		65	$	68,799
3.20%, 07/01/26			700		714,476
4.20%, 10/01/28			290		313,948
IBM Credit LLC, 3.45%, 11/30/20			210		213,510
International Business Machines Corp.:
2.90%, 11/01/21			100		101,492
3.00%, 05/15/24			100		102,697
3.30%, 05/15/26			860		891,487
4.15%, 05/15/39			100		106,829
Mastercard, Inc.:
2.95%, 11/21/26			50		51,549
2.95%, 06/01/29			345		355,863
3.65%, 06/01/49			75		79,519
Total System Services, Inc.:
3.80%, 04/01/21			60		61,110
3.75%, 06/01/23			85		87,735
4.80%, 04/01/26			455		499,026
Visa, Inc.:
4.15%, 12/14/35			168		193,069
4.30%, 12/14/45			95		112,530
					4,860,681
Life Sciences Tools & Services — 0.2%
Agilent Technologies, Inc.:
3.88%, 07/15/23			34		35,562
3.05%, 09/22/26			350		353,211
Thermo Fisher Scientific, Inc., 2.95%, 09/19/26			703		707,007
					1,095,780
Machinery — 0.0%
CNH Industrial NV, 3.85%, 11/15/27			50		49,929
Media — 1.0%
Charter Communications Operating LLC:
4.50%, 02/01/24			275		293,082
4.91%, 07/23/25			390		423,401
6.38%, 10/23/35			794		932,484
5.38%, 04/01/38			75		80,315
6.48%, 10/23/45			265		312,252
5.38%, 05/01/47			45		47,483
Comcast Corp.:
3.30%, 10/01/20			485		491,649
3.38%, 02/15/25			45		47,110
3.15%, 03/01/26			435		450,218
2.35%, 01/15/27			30		29,256
4.15%, 10/15/28			20		22,043
4.25%, 10/15/30			85		94,862
5.65%, 06/15/35			110		137,236
4.40%, 08/15/35			93		103,585
6.50%, 11/15/35			140		189,735
3.20%, 07/15/36			581		564,338
6.45%, 03/15/37			3		4,066
4.60%, 10/15/38			90		103,054
6.55%, 07/01/39			17		23,254
3.40%, 07/15/46			236		226,293
4.70%, 10/15/48			15		17,568
4.95%, 10/15/58			105		128,167
Cox Communications, Inc.(b):
3.15%, 08/15/24			518		525,151
3.35%, 09/15/26			32		32,314
Discovery Communications LLC:
3.80%, 03/13/24			151		156,718
3.95%, 06/15/25			65		67,360
5.20%, 09/20/47			145		153,256

Security		Par         (000)		Value
Media (continued)
Fox Corp.(b):
4.03%, 01/25/24	USD		100	$	106,365
4.71%, 01/25/29			170		190,187
Time Warner Cable LLC:
5.00%, 02/01/20			58		58,762
4.00%, 09/01/21			22		22,581
5.50%, 09/01/41			113		118,472
4.50%, 09/15/42			9		8,410
					6,161,027
Metals & Mining — 0.2%
Anglo American Capital plc(b):
3.63%, 09/11/24			270		275,797
4.75%, 04/10/27			220		233,023
ArcelorMittal, 4.55%, 03/11/26			95		100,415
Barrick Gold Corp.:
3.85%, 04/01/22			108		111,682
5.25%, 04/01/42			80		93,818
BHP Billiton Finance USA Ltd.:
4.13%, 02/24/42			74		81,720
5.00%, 09/30/43			46		57,629
Largo Resources Ltd., 9.25%, 06/01/21(b)			11		11,522
Nucor Corp., 5.20%, 08/01/43			40		47,579
Steel Dynamics, Inc., 5.13%, 10/01/21			110		111,146
					1,124,331
Multiline Retail — 0.0%
Dollar General Corp., 4.13%, 05/01/28			9		9,579
Multi-Utilities — 0.2%
Ameren Illinois Co., 3.80%, 05/15/28			120		128,682
Berkshire Hathaway Energy Co.:
6.13%, 04/01/36			20		26,762
5.95%, 05/15/37			10		12,908
Black Hills Corp., 3.95%, 01/15/26			42		43,804
Consumers Energy Co.:
3.38%, 08/15/23			2		2,078
3.80%, 11/15/28			34		37,148
3.95%, 07/15/47			30		32,447
4.05%, 05/15/48			45		49,628
3.75%, 02/15/50			155		163,360
DTE Energy Co., Series D, 3.70%, 08/01/23			130		135,651
NiSource, Inc., 3.49%, 05/15/27			285		294,799
					927,267
Oil, Gas & Consumable Fuels — 3.0%
Anadarko Petroleum Corp., 0.00%, 10/10/36(j)			1,000		472,450
Andeavor Logistics LP:
5.50%, 10/15/19			245		246,139
5.25%, 01/15/25			40		42,325
4.25%, 12/01/27			874		923,217
5.20%, 12/01/47			170		179,997
Boardwalk Pipelines LP, 4.80%, 05/03/29			75		78,277
BP Capital Markets America, Inc.:
3.79%, 02/06/24			180		190,589
3.80%, 09/21/25			370		394,854
3.12%, 05/04/26			105		107,000
BP Capital Markets plc, 2.32%, 02/13/20			46		45,989
Cimarex Energy Co.:
4.38%, 06/01/24			300		317,742
3.90%, 05/15/27			257		264,103
Concho Resources, Inc., 3.75%, 10/01/27			150		155,215
Continental Resources, Inc.:
4.50%, 04/15/23			693		728,122
3.80%, 06/01/24			168		172,736
Devon Energy Corp., 5.85%, 12/15/25			200		236,946

18 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Oil, Gas & Consumable Fuels (continued)
Enbridge, Inc.:
2.90%, 07/15/22	USD		55	$	55,810
3.70%, 07/15/27			360		371,814
(LIBOR USD 3 Month + 3.42%),
5.50%, 07/15/77(a)			475		459,306
Energy Transfer Operating LP:
5.88%, 01/15/24			901		1,002,961
6.05%, 06/01/41			9		10,077
6.50%, 02/01/42			535		632,445
5.15%, 03/15/45			110		111,854
6.13%, 12/15/45			8		9,064
5.30%, 04/15/47			33		34,421
Enterprise Products Operating LLC:
Series D, 6.88%, 03/01/33			24		32,154
Series H, 6.65%, 10/15/34			10		13,217
5.95%, 02/01/41			90		110,358
4.45%, 02/15/43			172		179,618
5.10%, 02/15/45			143		163,458
EOG Resources, Inc., 4.15%, 01/15/26			85		92,562
Hess Corp., 5.80%, 04/01/47			105		116,584
Kinder Morgan Energy Partners LP:
5.80%, 03/15/35			55		63,424
6.50%, 02/01/37			145		174,119
6.95%, 01/15/38			110		141,038
6.38%, 03/01/41			52		62,823
5.00%, 03/01/43			220		230,678
Kinder Morgan, Inc.:
3.05%, 12/01/19			320		320,577
3.15%, 01/15/23			490		498,445
4.30%, 06/01/25			30		32,048
4.30%, 03/01/28			328		351,555
5.55%, 06/01/45			73		84,470
5.05%, 02/15/46			352		383,575
Marathon Petroleum Corp.:
4.75%, 12/15/23			120		129,446
5.85%, 12/15/45			65		71,704
MPLX LP:
4.88%, 12/01/24			520		565,674
4.00%, 02/15/25			20		20,885
4.13%, 03/01/27			883		924,287
4.50%, 04/15/38			50		50,480
5.20%, 03/01/47			51		54,818
5.50%, 02/15/49			12		13,629
Northwest Pipeline LLC, 4.00%, 04/01/27			335		350,745
Petrobras Global Finance BV:
8.75%, 05/23/26			93		114,864
7.25%, 03/17/44			235		261,291
Plains All American Pipeline LP, 3.65%, 06/01/22			30		30,727
Sabine Pass Liquefaction LLC:
5.63%, 04/15/23			184		200,407
5.75%, 05/15/24			460		511,563
5.63%, 03/01/25			651		729,167
5.88%, 06/30/26			498		569,082
5.00%, 03/15/27			190		208,327
Spectra Energy Partners LP:
5.95%, 09/25/43			50		62,176
4.50%, 03/15/45			149		157,418
Sunoco Logistics Partners Operations LP:
5.35%, 05/15/45			77		80,078
5.40%, 10/01/47			70		74,347
Texas Eastern Transmission LP, 3.50%, 01/15/28(b)			515		523,344
TransCanada PipeLines Ltd.:
4.88%, 01/15/26			495		546,323

Security		Par         (000)			Value
Oil, Gas & Consumable Fuels (continued)
4.25%, 05/15/28	USD		115		$	124,323
4.63%, 03/01/34			80			88,809
5.85%, 03/15/36			33			39,667
6.10%, 06/01/40			152			188,023
Transcontinental Gas Pipe Line Co. LLC:
7.85%, 02/01/26			202			257,914
4.00%, 03/15/28			200			208,744
4.60%, 03/15/48			40			42,445
Valero Energy Corp.:
3.65%, 03/15/25			186			192,968
3.40%, 09/15/26			119			121,348
Western Midstream Operating LP:				��
4.00%, 07/01/22			90			91,170
4.65%, 07/01/26			100			101,382
Williams Cos., Inc. (The):
4.55%, 06/24/24			44			47,412
3.75%, 06/15/27			119			122,863
Series A, 7.50%, 01/15/31			15			19,408
5.75%, 06/24/44			170			198,404
						18,389,818
Paper & Forest Products — 0.2%
Georgia-Pacific LLC:
5.40%, 11/01/20(b)			145			150,706
3.73%, 07/15/23(b)			184			192,566
3.60%, 03/01/25(b)			40			42,005
7.38%, 12/01/25			97			122,891
7.75%, 11/15/29			60			84,966
Suzano Austria GmbH, 6.00%, 01/15/29(b)			345			376,912
						970,046
Pharmaceuticals — 1.1%
Allergan Funding SCS:
3.45%, 03/15/22			260			265,464
3.85%, 06/15/24			14			14,533
3.80%, 03/15/25			625			648,608
4.55%, 03/15/35			420			424,065
Bayer US Finance II LLC(b):
3.60%, 07/15/42			107			84,940
4.40%, 07/15/44			50			46,643
Bayer US Finance LLC, 3.38%, 10/08/24(b)			200			200,945
Bristol-Myers Squibb Co.(b):
3.20%, 06/15/26			666			691,981
4.13%, 06/15/39			75			80,881
Eli Lilly & Co., 4.15%, 03/15/59			155			170,142
GlaxoSmithKline Capital, Inc.:
3.88%, 05/15/28			330			361,201
6.38%, 05/15/38			30			42,112
Johnson & Johnson, 2.45%, 03/01/26			55			55,301
Merck & Co., Inc.:
3.60%, 09/15/42			25			25,556
3.70%, 02/10/45			5			5,289
4.00%, 03/07/49			70			77,811
Novartis Capital Corp.:
3.40%, 05/06/24			170			178,769
3.10%, 05/17/27			170			176,199
4.40%, 05/06/44			35			40,969
Shire Acquisitions Investments Ireland DAC:
1.90%, 09/23/19			1,340			1,337,923
2.88%, 09/23/23			170			171,662
3.20%, 09/23/26			469			472,933
Takeda Pharmaceutical Co. Ltd., 5.00%, 11/26/28(b)			400			453,335
Wyeth LLC: 6.45%, 02/01/24			45			53,139

SCHEDULE OF INVESTMENTS 19

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Pharmaceuticals (continued)
5.95%, 04/01/37	USD		340	$	450,720
					6,531,121
Road & Rail — 0.8%
Burlington Northern Santa Fe LLC:
3.00%, 03/15/23			899		921,805
3.00%, 04/01/25			25		25,729
6.15%, 05/01/37			80		107,542
5.05%, 03/01/41			160		194,066
4.95%, 09/15/41			25		29,932
5.15%, 09/01/43			270		335,508
CSX Corp.:
4.25%, 03/15/29			90		100,241
6.15%, 05/01/37			75		96,840
4.75%, 11/15/48			110		127,955
4.25%, 11/01/66			59		60,817
Norfolk Southern Corp.:
3.85%, 01/15/24			170		179,390
3.65%, 08/01/25			96		101,228
2.90%, 06/15/26			275		279,125
4.84%, 10/01/41			50		57,900
3.95%, 10/01/42			20		20,625
4.10%, 05/15/49			5		5,331
4.05%, 08/15/52			112		116,739
Penske Truck Leasing Co. LP(b):
2.70%, 03/14/23			145		144,940
3.95%, 03/10/25			225		236,141
3.40%, 11/15/26			170		169,838
4.20%, 04/01/27			103		107,065
Ryder System, Inc., 3.45%, 11/15/21			21		21,458
Union Pacific Corp.:
3.15%, 03/01/24			150		154,668
2.75%, 03/01/26			339		340,577
3.38%, 02/01/35			267		265,738
3.60%, 09/15/37			221		224,575
4.38%, 09/10/38			9		9,971
4.75%, 09/15/41			55		62,590
3.80%, 10/01/51			69		69,354
3.88%, 02/01/55			134		134,076
					4,701,764
Semiconductors & Semiconductor Equipment — 1.0%
Analog Devices, Inc.:
3.50%, 12/05/26			385		392,347
5.30%, 12/15/45			62		71,643
Applied Materials, Inc.:
3.90%, 10/01/25			69		74,060
3.30%, 04/01/27			374		388,391
5.10%, 10/01/35			140		169,657
5.85%, 06/15/41			20		25,798
4.35%, 04/01/47			290		323,950
Broadcom Corp.:
2.38%, 01/15/20			38		37,934
3.63%, 01/15/24			200		201,894
3.88%, 01/15/27			510		499,750
Broadcom, Inc., 4.25%, 04/15/26(b)			395		400,876
Intel Corp., 4.80%, 10/01/41			125		147,514
KLA-Tencor Corp.:
4.10%, 03/15/29			440		462,886
5.00%, 03/15/49			160		178,232
Lam Research Corp.:
2.75%, 03/15/20			121		121,106
3.75%, 03/15/26			215		226,219
4.88%, 03/15/49			140		154,180
NVIDIA Corp., 3.20%, 09/16/26			490		501,223

Security		Par         (000)		Value
Semiconductors & Semiconductor Equipment (continued)
NXP BV(b):
4.13%, 06/01/21	USD		450	$	460,395
3.88%, 09/01/22			390		401,013
4.63%, 06/01/23			300		316,230
3.88%, 06/18/26			120		123,330
4.30%, 06/18/29			160		164,941
QUALCOMM, Inc., 4.65%, 05/20/35			235		262,409
Texas Instruments, Inc.:
2.25%, 05/01/23			90		90,170
4.15%, 05/15/48			70		79,425
					6,275,573
Software — 0.6%
Autodesk, Inc., 3.50%, 06/15/27			425		429,545
Microsoft Corp.:
3.50%, 02/12/35			321		342,507
3.45%, 08/08/36			644		681,453
3.70%, 08/08/46			610		659,310
Oracle Corp.:
2.50%, 10/15/22			33		33,233
3.40%, 07/08/24			215		225,326
2.65%, 07/15/26			450		452,058
3.90%, 05/15/35			181		195,956
3.85%, 07/15/36			67		71,080
4.50%, 07/08/44			70		79,117
4.13%, 05/15/45			80		86,570
4.00%, 07/15/46			261		279,824
					3,535,979
Specialty Retail — 0.2%
Home Depot, Inc. (The):
2.80%, 09/14/27			59		59,844
3.90%, 12/06/28			104		114,454
2.95%, 06/15/29			90		92,324
5.88%, 12/16/36			65		86,248
5.40%, 09/15/40			80		100,583
5.95%, 04/01/41			38		51,519
4.20%, 04/01/43			40		44,479
4.88%, 02/15/44			35		42,431
3.50%, 09/15/56			90		88,835
Lowe’s Cos., Inc.:
4.38%, 09/15/45			150		156,293
3.70%, 04/15/46			55		51,791
4.05%, 05/03/47			55		54,573
					943,374
Technology Hardware, Storage & Peripherals — 0.3%
Apple, Inc.:
3.00%, 02/09/24			276		285,076
3.85%, 05/04/43			959		1,016,419
3.45%, 02/09/45			39		38,862
4.38%, 05/13/45			42		47,869
4.65%, 02/23/46			20		23,722
Dell International LLC(b):
4.42%, 06/15/21			145		149,414
6.02%, 06/15/26			50		55,159
Seagate HDD Cayman, 4.25%, 03/01/22			75		76,272
					1,692,793
Tobacco — 0.5%
Altria Group, Inc.:
4.00%, 01/31/24			380		398,224
3.80%, 02/14/24			46		47,951
4.40%, 02/14/26			40		42,802
4.80%, 02/14/29			190		204,400
5.80%, 02/14/39			85		95,509
4.25%, 08/09/42			120		110,900

20 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Tobacco (continued)
5.38%, 01/31/44	USD		320	$	343,191
6.20%, 02/14/59			30		34,192
BAT International Finance plc,
3.95%, 06/15/25(b)			590		610,697
Philip Morris International, Inc.:
2.13%, 05/10/23			85		84,078
3.88%, 08/21/42			55		54,535
Reynolds American, Inc.:
4.45%, 06/12/25			795		843,018
5.85%, 08/15/45			110		118,471
					2,987,968
Trading Companies & Distributors — 0.0%
GATX Corp., 2.60%, 03/30/20			59		58,947
Wireless Telecommunication Services — 0.3%
Sprint Spectrum Co. LLC, 3.36%, 09/20/21(b)			445		445,053
Vodafone Group plc:
3.75%, 01/16/24			153		159,967
4.13%, 05/30/25			145		154,169
6.15%, 02/27/37			265		321,921
5.25%, 05/30/48			135		149,025
(USD Swap Semi 5 Year + 4.87%), 7.00%, 04/04/79(a)			415		448,150
					1,678,285
Total Corporate Bonds — 33.0% (Cost: $194,383,900)					203,462,152
Floating Rate Loan Interests — 0.4%(k)
Banks — 0.1%
Goldman Sachs Bank USA, Term Loan, (LIBOR USD 1 Month + 2.10%), 0.00% - 4.59%, 09/17/19(c)			393		390,694
Capital Markets — 0.0%
Goldman Sachs Lending Partners LLC, Term Loan, (LIBOR USD 1 Month + 2.10%), 0.00% - 4.59%, 09/17/19(c)			164		163,563
Construction Materials — 0.0%
Foundation Building Materials, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.00%),     5.40%, 08/13/25(c)			134		133,653
Gas Utilities — 0.0%
Midcoast Operating LP, Term Loan, (LIBOR USD 3 Month + 5.50%), 7.83%, 06/30/25			129		129,186
Thrifts & Mortgage Finance — 0.3%(c)
Caliber Home Loans, Inc., Term Loan, (LIBOR USD 6 Month + 3.00%), 0.00% - 5.69%, 04/24/21			447		445,846
Roundpoint Mortgage Servicing Corp., Term Loan, (LIBOR USD 6 Month + 3.29%), 5.78%, 08/08/20			999		999,527
					1,445,373
Total Floating Rate Loan Interests — 0.4% (Cost: $2,265,153)					2,262,469

Security		Par         (000)		Value
Foreign Agency Obligations — 0.5%
Mexico — 0.4%
Petroleos Mexicanos:
6.38%, 02/04/21	USD		224	$	230,104
6.88%, 08/04/26			103		103,865
6.50%, 03/13/27			1,510		1,494,447
5.35%, 02/12/28			140		127,414
5.63%, 01/23/46			202		162,711
6.75%, 09/21/47			23		20,403
					2,138,944
Saudi Arabia — 0.1%
Saudi Arabian Oil Co., 3.50%, 04/16/29(b)			490		495,512
South Africa — 0.0%
Eskom Holdings SOC Ltd., 6.75%, 08/06/23(b)			200		209,750
Total Foreign Agency Obligations — 0.5% (Cost: $2,848,908)					2,844,206
Foreign Government Obligations — 3.2%
Argentina — 0.0%
Bonos de la Nacion Argentina con Ajuste por CER, 4.00%, 03/06/20	ARS		2,336		45,936
Republic of Argentina, 6.88%, 01/11/48	USD		224		166,040
					211,976
Brazil — 0.1%
Federative Republic of Brazil, 4.50%, 05/30/29			712		731,358
Colombia — 0.2%
Republic of Colombia, 3.88%, 04/25/27			1,050		1,095,675
Egypt — 0.1%
Arab Republic of Egypt:
5.75%, 04/29/20			145		147,175
4.75%, 04/11/25(b)	EUR		117		136,034
6.38%, 04/11/31(b)			132		152,724
6.88%, 04/30/40	USD		185		176,212
					612,145
France — 0.6%
Republic of France, 1.50%, 05/25/50(b)	EUR		2,860		3,743,167
Hungary — 0.1%
Republic of Hungary, 5.38%, 03/25/24	USD		280		316,225
Indonesia — 0.4%
Republic of Indonesia:
4.10%, 04/24/28			270		285,188
8.25%, 05/15/29	IDR		17,224,000		1,293,263
8.38%, 03/15/34			4,623,000		346,868
8.38%, 04/15/39			7,876,000		579,877
7.38%, 05/15/48			4,151,000		264,074
					2,769,270
Mexico — 0.6%
United Mexican States:
4.15%, 03/28/27	USD		2,233		2,344,650
7.50%, 06/03/27	MXN		30		156,196
8.50%, 05/31/29			105		580,279
7.75%, 11/23/34			50		260,504
10.00%, 11/20/36			30		188,966
7.75%, 11/13/42			55		283,374
					3,813,969
Nigeria — 0.0%
Federal Republic of Nigeria, 13.98%, 02/23/28	NGN		19,895		53,957

SCHEDULE OF INVESTMENTS 21

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Panama — 0.1%
Republic of Panama, 3.88%, 03/17/28	USD		390	$	417,056
Peru — 0.1%
Republic of Peru, 4.13%, 08/25/27			390		435,216
Philippines — 0.1%
Republic of the Philippines, 3.00%, 02/01/28			810		831,263
Russia — 0.4%
Russian Federation:
6.90%, 05/23/29	RUB		65,074		1,001,349
8.50%, 09/17/31			67,395		1,163,549
					2,164,898
Saudi Arabia — 0.0%
Kingdom of Saudi Arabia, 4.50%, 10/26/46	USD		200		203,300
South Africa — 0.3%
Republic of South Africa:
6.25%, 03/31/36	ZAR		15,272		796,631
9.00%, 01/31/40			11,130		743,498
8.75%, 01/31/44			5,210		336,977
					1,877,106
Turkey — 0.0%
Republic of Turkey, 7.63%, 04/26/29	USD		200		204,750
Uruguay — 0.1%
Oriental Republic of Uruguay, 4.38%, 10/27/27			413		446,130
Total Foreign Government Obligations — 3.2% (Cost: $19,056,354)					19,927,461
		Shares
Investment Companies — 2.7%
BlackRock Allocation Target Shares- BATS Series A*			1,635,282		16,500,000
Total Investment Companies — 2.7% (Cost: $16,500,000)					16,500,000
		Par (000)
Municipal Bonds — 5.9%
Aldine Independent School District (The Permanent School Fund Guarantee Program), Series 2018, GO, 5.00%, 02/15/43			40		48,118
American Municipal Power, Inc. (Combined Hydroelectric Project);
Series 2010B, RB, 7.83%, 02/15/41			50		79,029
Series 2009B, RB, 6.45%, 02/15/44			30		42,003
Arizona Health Facilities Authority (Banner Health), Series 2007B, RB, VRDN, 2.55%, 07/01/19(l)			35		34,620
Arizona State University, Series 2017B, RB, 5.00%, 07/01/43			40		47,837
Bay Area Toll Authority;
Series 2010S-1, RB, 6.92%, 04/01/40			90		130,836
Series 2010S-1, RB, 7.04%, 04/01/50			600		970,176
Berks County Industrial Development Authority (Tower Health Project);
Series 2017, RB, 5.00%, 11/01/47			60		68,384
Series 2017, RB, 5.00%, 11/01/50			60		68,359

Security		Par         (000)		Value
Municipal Bonds (continued)
Buckeye Tobacco Settlement Financing Authority, Series 2007A-2, RB, 5.88%, 06/01/47	USD		180	$	176,290
California Health Facilities Financing Authority (Cedars- Sinai Medical Center);
Series 2016A, RB, 5.00%, 08/15/33			40		48,287
Series 2017A, RB, 5.00%, 08/15/47			60		69,246
Series 2017A, Sub-Series 2017A-2, RB, 5.00%, 11/01/47(m)			70		100,474
California State Public Works Board (Various Capital Projects), Series 2009G, Sub-Series G-2, RB, 8.36%, 10/01/34			35		54,442
Canaveral Port Authority;
Series 2018A, RB, 5.00%, 06/01/45			80		92,182
Series 2018B, RB, 5.00%, 06/01/48			80		93,761
Central Puget Sound Regional Transit Authority, Series 2015S-1, RB, 5.00%, 11/01/50			60		69,813
Central Texas Regional Mobility Authority;
Series 2015A, RB, 5.00%, 01/01/45			30		33,640
Series 2016, RB, 5.00%, 01/01/46			30		33,808
Chesapeake Bay Bridge & Tunnel District (Parallel Thimble Shoal Tunnel Project);
Series 2016, RB, 5.00%, 07/01/41			30		34,859
Series 2016, RB, 5.00%, 07/01/51			25		28,244
City & County of Denver;
Series 2016A, RB, 5.00%, 08/01/44			100		116,471
Series 2018A-1, RB, 5.00%, 08/01/48			70		81,349
City of Atlanta;
Series 2015, RB, 5.00%, 11/01/40			30		34,687
Series 2018A, RB, 5.00%, 11/01/41			50		60,056
City of Aurora;
Series 2016, RB, 5.00%, 08/01/41			120		143,107
Series 2016, RB, 5.00%, 08/01/46			130		153,760
City of Austin Water & Wastewater System, Series 2014, RB, 5.00%, 11/15/43			60		68,188
City of Columbia Waterworks & Sewer System, Series 2018, RB, 5.00%, 02/01/42			40		48,270
City of New York;
Series 2019D, Sub-Series D-2, GO, 3.76%, 12/01/27			115		124,958
Series 2018F, Sub-Series F-1, GO, 5.00%, 04/01/43			375		448,316
City of Riverside, Series 2010A, RB, 7.61%, 10/01/40			50		77,615
City of San Antonio Electric & Gas Systems;
Series 2010A, RB, 5.81%, 02/01/41			160		219,061
Series 2013, RB, 5.00%, 02/01/48(m)			45		49,172
Colorado Health Facilities Authority (Catholic Health Initiatives), Series 2011A, RB, 5.25%, 02/01/31			25		26,262
Commonwealth Financing Authority;
Series 2018A, RB, 3.86%, 06/01/38			80		82,518
Series 2016A, RB, 4.14%, 06/01/38			60		64,964
Series 2019A, RB, 3.81%, 06/01/41			460		483,051
Commonwealth of Puerto Rico, Series 2014A, GO, Default, 8.00%, 07/01/35(g)(h)			410		215,250
Connecticut Housing Finance Authority, Series 2015A, RB, 3.75%, 11/15/40			1,350		1,398,451
Connecticut State Health & Educational Facilities Authority (Hartford Healthcare Corp.);
Series 2015F, RB, 5.00%, 07/01/45			60		65,573
Series 2015L, RB, 5.00%, 07/01/45			90		102,023
Contra Costa Community College District, Series 2010B, GO, 6.50%, 08/01/34			10		13,080

22 2019 BLACK ROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Municipal Bonds (continued)
County of Clark Department of Aviation;(m)
Series 2019B, RB, 5.00%, 07/01/32	USD		30	$	37,745
Series 2019B, RB, 5.00%, 07/01/33			30		37,590
Series 2019B, RB, 5.00%, 07/01/35			70		87,061
Series 2019B, RB, 5.00%, 07/01/40			40		49,140
Series 2019B, RB, 5.00%, 07/01/41			90		110,270
Series 2019B, RB, 5.00%, 07/01/42			120		146,470
County of King, Series 2015A, RB, 5.00%, 07/01/47			60		68,800
County of Miami-Dade;
Series 2017D, RB, 3.35%, 10/01/29			20		20,865
Series 2017D, RB, 3.45%, 10/01/30			35		36,671
Series 2017D, RB, 3.50%, 10/01/31			30		31,412
Series 2018C, RB, 4.06%, 10/01/31			55		60,353
Series 2015A, RB, 5.00%, 10/01/38			10		11,435
Series 2017B, RB, 5.00%, 10/01/40			60		70,337
Dallas Area Rapid Transit;
Series 2016A, RB, 5.00%, 12/01/41			60		69,907
Series 2016A, RB, 5.00%, 12/01/46			90		104,336
DuBois Hospital Authority (Penn Highlands Healthcare), Series 2018, RB, 5.00%, 07/15/43			60		69,392
Dutchess County Local Development Corp. (Health Quest Systems, Inc. Project), Series 2016B, RB, 5.00%, 07/01/46			100		113,941
Grand Parkway Transportation Corp. (Grand Parkway Project), Series 2018A, RB, 5.00%, 10/01/43			90		107,025
Grant County Public Utility District No. 2 (The Priest Rapids Project), Series 2015M, RB, 4.58%, 01/01/40			15		16,913
Great Lakes Water Authority Water Supply System, RB, 5.25%, 07/01/33			20		23,960
Health & Educational Facilities Authority of the State of Missouri (Saint Luke’s Health System, Inc.);
Series 2016, RB, 5.00%, 11/15/29			25		29,757
Series 2016A, RB, 3.65%, 01/15/46			20		20,819
Series 2016B, RB, 3.09%, 09/15/51			135		125,755
Idaho Health Facilities Authority (Trinity Health Credit Group), Series 2017A, RB, 5.00%, 12/01/47			50		59,056
Indiana Finance Authority (CWA Authority Project);
Series 2015A, RB, 5.00%, 10/01/45			130		147,035
Series 2016A, RB, 5.00%, 10/01/46			420		488,309
Indiana Housing & Community Development Authority, Series 2018A, RB, 3.80%, 07/01/38			30		31,441
JobsOhio Beverage System, Series 2013B, RB, 3.99%, 01/01/29			340		370,753
Kansas City Industrial Development Authority (Kansas City International Airport Terminal Modernization Project), Series 2019B, RB, 5.00%, 03/01/49			200		235,920
Kentucky Economic Development Finance Authority (Owensboro Health, Inc.), Series 2015A, RB, 5.25%, 06/01/50			30		32,547
Kentucky Turnpike Authority (Revitalization Projects), Series 2010A, RB, 5.00%, 07/01/20			60		62,054
Las Vegas Valley Water District, Series 2016A, GO, 5.00%, 06/01/46			30		35,016
Lexington County Health Services District, Inc., Series 2016, RB, 5.00%, 11/01/41			30		34,397

Security		Par         (000)		Value
Municipal Bonds (continued)
Los Angeles Community College District, Series 2010E, GO, 6.60%, 08/01/42	USD		185	$	277,444
Los Angeles Department of Water & Power System (Water System Revenue Bonds), Series 2010A, RB, 6.60%, 07/01/50			85		134,091
Los Angeles Unified School District, Series 2010I, GO, 6.76%, 07/01/34			375		515,272
Louisiana Public Facilities Authority, Series 2018E, RB, 5.00%, 07/01/48			50		58,305
Louisville & Jefferson County Metropolitan Sewer District, Series 2017B, RB, 5.00%, 05/15/25			90		107,545
Maryland Community Development Administration, Series 2018A, RB, 3.85%, 09/01/33			60		64,673
Maryland Stadium Authority (Baltimore City Public Schools Construction & Revitalization Program), Series 2016, RB, 5.00%, 05/01/41			50		58,300
Massachusetts Bay Transportation Authority;
Series 2017A, Sub-Series A-1, RB, 5.00%, 07/01/39			30		35,975
Series 2017A, Sub-Series A-1, RB, 5.00%, 07/01/40			30		35,926
Massachusetts Development Finance Agency (Partners Healthcare System Issue);
Series 2018J-2, RB, 5.00%, 07/01/43			80		93,356
Series 2017L, RB, 5.00%, 07/01/44			100		114,257
Series 2016Q, RB, 5.00%, 07/01/47			50		58,585
Series 2018J-2, RB, 5.00%, 07/01/48			70		81,207
Series 2018J-2, RB, 5.00%, 07/01/53			80		92,099
Massachusetts Housing Finance Agency;
Series 2014B, RB, 4.50%, 12/01/39			25		25,860
Series 2014B, RB, 4.60%, 12/01/44			40		42,175
Series 2015A, RB, 4.50%, 12/01/48			40		41,731
Massachusetts Port Authority, Series 2016B, RB, 5.00%, 07/01/43			50		57,496
Massachusetts Water Resources Authority, Series 2016C, RB, 5.00%, 08/01/40			30		35,817
Matagorda County Navigation District No. 1 (Central Power and Light Company Project), Series 2001A, RB, 2.60%, 11/01/29(m)			110		111,614
Mesquite Independent School District (The Permanent School Fund Guarantee Program), Series 2017B, GO, 5.00%, 08/15/42			60		70,895
Metropolitan Atlanta Rapid Transit Authority;
Series 2018A, RB, 4.00%, 07/01/25			60		68,869
Series 2015A, RB, 5.00%, 07/01/41			110		127,575
Series 2015B, RB, 5.00%, 07/01/45			50		59,346
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center);
Series 2016A, RB, 5.00%, 07/01/40			40		46,109
Series 2016A, RB, 5.00%, 07/01/46			60		68,605
Metropolitan St Louis Sewer District;
Series 2017A, RB, 5.00%, 05/01/42			80		95,101
Series 2017A, RB, 5.00%, 05/01/47			80		94,614
Metropolitan Transportation Authority; Series 2019B, Sub-Series 2019B-1,     BAN, RB, 5.00%, 05/15/22			430		473,133
Series 2010A, RB, 6.67%, 11/15/39			55		76,852
Series 2009C, RB, 7.34%, 11/15/39			520		798,450
Series 2010C-1, RB, 6.69%, 11/15/40			30		41,778
Series 2015A, Sub-Series 2015A-1, RB, 5.00%, 11/15/45			40		45,451

SCHEDULE OF INVESTMENTS 23

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Municipal Bonds (continued)
Series 2019B, RB, 5.00%, 11/15/52	USD		140	$	166,062
Metropolitan Washington Airports Authority, Series 2016A, RB, 5.00%, 10/01/32			90		107,064
Metropolitan Washington Airports Authority Dulles Toll Road (Dulles Metrorail and Capital Improvement Project), Series 2009D, RB, 7.46%, 10/01/46			30		47,699
Miami-Dade County Educational Facilities Authority, Series 2018A, RB, 5.00%, 04/01/53			80		93,532
Michigan Finance Authority (Henry Ford Health System);
Series 2016, RB, 5.00%, 11/15/41			30		34,639
Series 2017A-MI, RB, 5.00%, 12/01/47			190		206,659
Michigan State Housing Development Authority;
Series 2018B, RB, 3.55%, 10/01/33			30		31,526
Series 2018A, RB, 4.00%, 10/01/43			30		31,874
Series 2018A, RB, 4.05%, 10/01/48			20		21,163
Series 2018A, RB, 4.15%, 10/01/53			80		84,669
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Corp.), Series 2016A, RB, 5.00%, 09/01/46			60		66,281
Municipal Electric Authority of Georgia (Plant Vogtle Units 3&4 Units Project), Series 2010A, RB, 6.64%, 04/01/57			40		48,087
New Hope Cultural Education Facilities Finance Corp. (Children’s Health System of Texas Project), Series 2017A, RB, 5.00%, 08/15/47			60		70,808
New Jersey Transportation Trust Fund Authority;
Series 2010C, RB, 5.75%, 12/15/28			140		161,098
Series 2010C, RB, 6.10%, 12/15/28			135		140,867
Series 2016A, Sub-Series A-1, RB, 5.00%, 06/15/29			30		35,088
Series 2018A, RB, 5.00%, 12/15/32			535		625,121
New Jersey Turnpike Authority, Series 2009F, RB, 7.41%, 01/01/40			565		874,128
New Orleans Aviation Board (North Terminal Project), Series 2015B, RB, 5.00%, 01/01/40			50		55,695
New York City Housing Development Corp.;
Series 2018C-1-A, RB, 3.70%, 11/01/38			40		41,242
Series 2018C-1-B, RB, 3.85%, 11/01/43			110		112,998
Series 2018C-1-A, RB, 4.00%, 11/01/53			120		124,560
New York City Transitional Finance Authority Building Aid, Series 2015S-2, RB, 5.00%, 07/15/40			30		34,707
New York City Transitional Finance Authority Future Tax Secured;
Series 2014A, Sub-Series A-2, RB, 3.65%, 11/01/24			165		173,803
Series 2018, Sub-Series C-4, RB, 3.55%, 05/01/25			170		180,501
Series 2014A, Sub-Series A-2, RB, 3.75%, 11/01/25			165		173,733
Series 2017F, Sub-Series F-2, RB, 3.05%, 05/01/27			160		165,374
Series 2019C, Sub-Series C-3, RB, 3.35%, 11/01/30			255		267,064
Series 2019B, Sub-Series B-3, RB, 3.90%, 08/01/31			210		227,959
Series 2017A, Sub-Series A-1, RB, 5.00%, 05/01/36			40		47,506
New York City Water & Sewer System;
Series 2010AA, RB, 5.75%, 06/15/41			35		48,424
Series 2010EE, RB, 6.01%, 06/15/42			25		35,474

Security		Par         (000)			Value
Municipal Bonds (continued)
Series 2020AA, RB, 5.38%, 06/15/43(n)	USD		200		$	211,463
Series 2011AA, RB, 5.44%, 06/15/43			60			79,941
Series 2011EE, RB, 5.50%, 06/15/43(n)			240			255,079
Series 2011CC, RB, 5.88%, 06/15/44			40			56,568
New York Convention Center Development Corp.;
Series 2015, RB, 5.00%, 11/15/40			30			35,007
Series 2016A, RB, 5.00%, 11/15/46			90			105,724
New York State Dormitory Authority;
Series 2017B, RB, 5.00%, 02/15/36			60			72,320
Series 2017B, RB, 5.00%, 02/15/37			30			36,163
Series 2017B, RB, 5.00%, 02/15/38			30			36,166
Series 2017B, RB, 5.00%, 02/15/40			30			35,973
Series 2010H, RB, 5.39%, 03/15/40			60			76,339
New York State Urban Development Corp.;
Series 2017B, RB, 3.12%, 03/15/25			100			103,627
Series 2019B, RB, 3.25%, 03/15/25			100			104,495
Series 2019B, RB, 3.35%, 03/15/26			395			415,374
Series 2017D, RB, 3.32%, 03/15/29			140			146,570
New York Transportation Development Corp. (LaGuardia Airport Terminal B Redevelopment Project);
Series 2016A, RB, 5.00%, 07/01/46			30			32,782
Series 2016A, RB, 5.25%, 01/01/50			340			377,720
North Carolina Turnpike Authority, Series 2018, RB, 5.00%, 01/01/35			60	��		72,617
Ohio Turnpike & Infrastructure Commission, Series 2013A, RB, 5.00%, 02/15/48			60			65,689
Orange County Local Transportation Authority, Series 2010A, RB, 6.91%, 02/15/41			75			106,317
Oregon School Boards Association;
Series 2005A, GO, 4.76%, 06/30/28			315			348,970
Series 2002B, GO, 5.55%, 06/30/28			290			343,348
Series 2003B, GO, 5.68%, 06/30/28			210			253,359
Pennsylvania Economic Development Financing Authority (Pennsylvania Rapid Bridge Replacement Project (The)), Series 2015, RB, 5.00%, 06/30/23			310			342,414
Pennsylvania Turnpike Commission;
Series 2016A-1, RB, 5.00%, 12/01/46			50			57,420
Series 2017B, Sub-Series B-1, RB, 5.25%, 06/01/47			100			116,095
Series 2018B, RB, 5.00%, 12/01/48			90			106,358
Port Authority of New York & New Jersey;
Series 165, RB, 5.65%, 11/01/40			95			126,524
Series 181, RB, 4.96%, 08/01/46			190			240,344
Series 180-1, RB, 5.00%, 11/15/47			30			35,412
Series 174, RB, 4.46%, 10/01/62			105			126,036
Port of Seattle, Series 2018A, RB, 5.00%, 05/01/43			30			34,604
Public Power Generation Agency, Series 2016A, RB, 5.00%, 01/01/35			40			46,404
Putnam County Development Authority, Series 2018A, RB, 5.00%, 03/15/42			130			151,291
Royal Oak Hospital Finance Authority (William Beaumont Hospital Obligated Group), Series 2014D, RB, 5.00%, 09/01/39			40			44,470
Sacramento County Sanitation Districts Financing Authority, Series 2035B, RB, VRDN, 2.22%, 09/02/19(l)			330			313,580
Salt Lake City Corp.;
Series 2017A, RB, 5.00%, 07/01/47			105			121,027
Series 2017B, RB, 5.00%, 07/01/47			50			59,012

24 2019 BLACK ROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Municipal Bonds (continued)
Salt River Project Agricultural Improvement & Power District;
Series 2017A, RB, 5.00%, 01/01/36	USD		60	$	73,471
Series 2015A, RB, 5.00%, 12/01/45			220		253,766
San Antonio Water System, Series 2015B, RB, 5.00%, 05/15/39			30		34,710
San Diego County Regional Airport Authority, Series 2017A, RB, 5.00%, 07/01/47			50		59,308
San Diego Public Facilities Financing Authority, Series 2016A, RB, 5.00%, 05/15/39			50		60,076
San Francisco City & County Airport Comm-San Francisco International Airport, Series 2016B, RB, 5.00%, 05/01/46			110		126,363
San Jose Redevelopment Agency Successor Agency, Series 2017A-T, 2.96%, 08/01/24			250		258,635
South Carolina Ports Authority, Series 2018, RB, 5.00%, 07/01/55			40		46,548
South Carolina Public Service Authority;
Series 2016D, RB, 2.39%, 12/01/23			472		466,610
Series 2012E, RB, 3.72%, 12/01/23			80		83,566
Series 2010C, RB, 6.45%, 01/01/50			136		203,501
State of California;
Series 2018A, GO, 5.00%, 10/01/25			160		194,451
Series 2019, GO, 2.65%, 04/01/26			425		433,644
Series 2009, GO, 7.50%, 04/01/34			60		90,542
Series 2018, GO, 4.60%, 04/01/38			815		906,402
Series 2009, GO, 7.55%, 04/01/39			85		134,155
Series 2009, GO, 7.30%, 10/01/39			85		127,855
Series 2009, GO, 7.35%, 11/01/39			340		513,862
State of Colorado, Series 2018N, COP, 5.00%, 03/15/38			1,030		1,250,296
State of Connecticut;
Series 2017A, GO, 2.99%, 01/15/23			150		153,076
Series 2017A, GO, 3.31%, 01/15/26			155		161,456
Series 2008A, GO, 5.85%, 03/15/32			245		309,589
State of Illinois;
Series 2018A, GO, 5.00%, 05/01/20			50		51,329
Series 2017D, GO, 5.00%, 11/01/22			20		21,848
Series 2017D, GO, 5.00%, 11/01/24			150		168,936
Series 2017A, GO, 5.00%, 12/01/24			30		33,776
Series 2017D, GO, 5.00%, 11/01/25			400		454,128
Series 2017D, GO, 5.00%, 11/01/26			940		1,075,360
Series 2003, GO, 5.10%, 06/01/33			945		994,858
State of Minnesota, Series 2018A, GO, 5.00%, 08/01/36			170		210,307
State of Ohio;
Series 2017A, GO, 5.00%, 05/01/36			90		105,258
Series 2017A, GO, 5.00%, 05/01/37			70		81,772
State of Oregon, Series 2003, GO, 5.89%, 06/01/27			335		404,047
State of Texas;
Series 2016, GO, 5.00%, 04/01/40			40		47,393
Series 2016, GO, 5.00%, 04/01/43			70		82,704
State of Washington;
Series 2016A-1, GO, 5.00%, 08/01/40			100		116,420
Series 2018B, GO, 5.00%, 08/01/40			40		47,775
Series 2017D, GO, 5.00%, 02/01/41			60		71,258
Series 2018B, GO, 5.00%, 08/01/41			40		47,693
State of West Virginia, Series 2018B, GO, 5.00%, 12/01/40			10		12,028
State of Wisconsin;
Series 2019A, RB, 5.00%, 05/01/25			80		95,955
Series 2017C, RB, 3.15%, 05/01/27			65		67,880
Series 2017B, GO, 5.00%, 05/01/36			50		58,594

Security		Par         (000)		Value
Municipal Bonds (continued)
Series 2017B, GO, 5.00%, 05/01/38	USD		50	$	58,383
Sumter Landing Community Development District, Series 2016, RB, 4.17%, 10/01/47			100		111,039
Tennessee Housing Development Agency (Residential Finance Program);
Series 2018-3, RB, 3.75%, 07/01/38			30		31,293
Series 2018-3, RB, 3.85%, 07/01/43			20		20,723
Series 2018-3, RB, 3.95%, 01/01/49			10		10,443
Texas A&M University, Series 2017B, RB, 2.84%, 05/15/27			75		77,136
Texas Municipal Gas Acquisition & Supply Corp. I, Series 2008D, RB, 6.25%, 12/15/26			30		35,058
Texas Water Development Board (State Water Plan projects), Series 2017A, RB, 5.00%, 04/15/23			140		158,858
Tobacco Settlement Finance Authority, Series 2007A, RB, 7.47%, 06/01/47			125		125,463
TSASC, Inc., Series 2017A, RB, 5.00%, 06/01/41			60		65,472
University of California;
Series 2017AX, RB, 3.06%, 07/01/25			520		538,990
Series 2019BD, RB, 3.35%, 07/01/29			345		366,756
Series 2013AJ, RB, 4.60%, 05/15/31			225		260,019
Series 2012AD, RB, 4.86%, 05/15/2112			20		24,268
University of California Medical Center;
Series 2016L, RB, 5.00%, 05/15/47			50		57,971
Series 2009F, RB, 6.58%, 05/15/49			75		107,553
University of Delaware, Series 2018, RB, 4.22%, 11/01/58			75		85,711
University of Houston, Series 2017A, RB, 5.00%, 02/15/36			90		106,364
University of Oregon, Series 2016A, RB, 5.00%, 04/01/46			40		46,602
University of Texas System (The), Series 2019A, RB, 5.00%, 08/15/39			70		86,993
Virginia Small Business Financing Authority (Transform 66 P3 Project);
Series 2017, RB, 5.00%, 12/31/52			90		101,273
Series 2017, RB, 5.00%, 12/31/56			80		89,421
Washington Metropolitan Area Transit Authority, Series 2017B, RB, 5.00%, 07/01/36			40		48,021
Washington State Convention Center Public Facilities District, Series 2018, RB, 5.00%, 07/01/58			80		92,074
Weld County School District No. 4, Series 2016, GO, 5.25%, 12/01/41			50		60,319
West Virginia Hospital Finance Authority (West Virginia United Health System Obligated Group);
Series 2016A, RB, 5.00%, 06/01/20			30		30,944
Series 2016A, RB, 5.00%, 06/01/21			30		31,944
Series 2016A, RB, 5.00%, 06/01/22			30		32,900
Series 2016A, RB, 5.00%, 06/01/23			25		28,165
Series 2016A, RB, 5.00%, 06/01/24			25		28,852
Wisconsin Health & Educational Facilities Authority (Thedacare, Inc.), Series 2015, RB, 5.00%, 12/15/44			30		33,079
Total Municipal Bonds — 5.9% (Cost: $34,623,079)					36,426,873

SCHEDULES OF INVESTMENTS 25

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Non-Agency Mortgage-Backed Securities — 4.7%
Collateralized Mortgage Obligations — 1.7%
Alternative Loan Trust:
Series 2005-22T1, Class A1, 2.75%, 06/25/35(d)	USD		163	$	142,008
Series 2005-72, Class A3, 3.00%, 01/25/36(d)			79		68,249
Series 2005-76, Class 2A1, 3.50%, 02/25/36(d)			27		24,906
Series 2006-11CB, Class 3A1, 6.50%, 05/25/36			67		52,044
Series 2006-15CB, Class A1, 6.50%, 06/25/36			11		8,259
Series 2006-OA14, Class 1A1, 4.23%, 11/25/46(d)			94		83,020
Series 2006-OA16, Class A4C, 2.74%, 10/25/46(d)			150		98,777
Series 2006-OA6, Class 1A2, 2.61%, 07/25/46(d)			41		40,195
Series 2006-OA8, Class 1A1, 2.59%, 07/25/46(d)			15		14,059
Series 2006-OC10, Class 2A3, 2.63%, 11/25/36(d)			58		47,150
Series 2006-OC7, Class 2A3, 2.65%, 07/25/46(d)			85		68,974
Series 2007-3T1, Class 1A1, 6.00%, 04/25/37			14		10,235
Series 2007-OA3, Class 1A1, 2.54%, 04/25/47(d)			25		23,761
American Home Mortgage Assets Trust(d):
Series 2006-3, Class 2A11, 3.44%, 10/25/46			67		60,268
Series 2006-4, Class 1A12, 2.61%, 10/25/46			82		57,653
Series 2006-5, Class A1, 3.42%, 11/25/46			128		63,749
Series 2007-1, Class A1, 3.20%, 02/25/47			68		42,114
APS Resecuritization Trust(b)(d):
Series 2016-1, Class 1MZ, 4.04%, 07/31/57			242		90,694
Series 2016-3, Class 3A, 5.25%, 09/27/46(c)			215		217,805
Series 2016-3, Class 4A, 5.00%, 04/27/47(c)			48		47,268
Banc of America Funding Trust(b)(d):
Series 2014-R2, Class 1C, 0.00%, 11/26/36			149		33,341
Series 2016-R2, Class 1A1, 4.70%, 05/01/33(c)			90		93,237
Bear Stearns Mortgage Funding Trust(d):
Series 2006-SL1, Class A1, 2.68%, 08/25/36			58		57,694
Series 2007-AR2, Class A1, 2.57%, 03/25/37			170		157,811
Series 2007-AR3, Class 1A1, 2.54%, 03/25/37			18		17,578
Series 2007-AR4, Class 1A1, 2.60%, 09/25/47			75		70,957
Series 2007-AR4, Class 2A1, 2.61%, 06/25/37			24		23,369
Chase Mortgage Finance Trust, Series 2007-S6, Class 1A1, 6.00%, 12/25/37			944		697,486
CHL Mortgage Pass-Through Trust:
Series 2006-OA4, Class A1, 3.46%, 04/25/46(d)			158		78,388
Series 2006-OA5, Class 3A1, 2.60%, 04/25/46(d)			28		25,913
Series 2007-15, Class 2A2, 6.50%, 09/25/37			249		181,920
CIM Trust, Series 2019-INV1, Class A1, 4.00%, 02/25/49(b)(d)			264		270,312
Citicorp Mortgage Securities Trust:
Series 2007-9, Class 1A1, 6.25%, 12/25/37			77		69,559
Series 2008-2, Class 1A1, 6.50%, 06/25/38			102		88,672

Security		Par         (000)		Value
Collateralized Mortgage Obligations (continued)
Credit Suisse Mortgage Capital Certificates(b):
Series 2009-12R, Class 3A1, 6.50%, 10/27/37	USD		281	$	161,469
Series 2019-RPL4, Class A1, 3.83%, 08/26/58			401		404,819
CSFB Mortgage-Backed Pass-Through
Certificates, Series 2005-10, Class 10A1, 3.75%, 11/25/35(d)			45		14,404
CSMC Trust(d):
Series 2009-5R, Class 4A4, 4.30%, 06/25/36(b)			76		70,721
Series 2014-11R, Class 16A1, 4.10%, 09/27/47(b)			51		51,391
Series 2015-6R, Class 5A1, 2.79%, 03/27/36(b)			4		3,807
Series 2015-6R, Class 5A2, 2.79%, 03/27/36(b)			60		45,937
Series 2019-JR1, 4.10%, 09/27/66			1,882		1,895,699
Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-OA4, Class A2A, 2.57%, 08/25/47(d)			164		112,632
Deutsche Alt-B Securities Mortgage Loan Trust, Series 2006-AB3, Class A8, 6.36%, 07/25/36(d)			13		12,421
GreenPoint Mortgage Funding Trust, Series 2006-AR2, Class 4A1, 4.50%, 03/25/36(d)			28		27,171
GSMPS Mortgage Loan Trust(b)(d):
Series 2005-RP1, Class 1AF, 2.75%, 01/25/35			51		47,037
Series 2005-RP2, Class 1AF, 2.75%, 03/25/35			61		56,103
Series 2006-RP1, Class 1AF1, 2.75%, 01/25/36			46		39,791
GSR Mortgage Loan Trust, Series 2007-1F, Class 2A4, 5.50%, 01/25/37			13		14,297
HarborView Mortgage Loan Trust, Series 2007-4, Class 2A2, 2.64%, 07/19/47(d)			173		156,810
IndyMac INDX Mortgage Loan Trust(d):
Series 2007-AR19, Class 3A1, 3.74%, 09/25/37			92		65,635
Series 2007-FLX5, Class 2A2, 2.64%, 08/25/37			165		147,445
Lehman XS Trust, Series 2007-20N, Class A1, 3.55%, 12/25/37(d)			34		31,582
LSTAR Securities Investment Trust(b)(d):
Series 2019-1, Class A1, 4.14%, 03/01/24			164		164,765
Series 2019-2, Class A1, 3.94%, 04/01/24			199		198,993
MASTR Resecuritization Trust, Series 2008-3, Class A1, 2.86%, 08/25/37(b)(c)(d)			29		23,044
MCM Trust(b)(c):
Series 2018-NPL1, Class A, 4.00%, 05/28/58			205		204,341
Series 2018-NPL2, Class A, 4.00%, 10/25/28			940		938,324
Series 2018-NPL2, Class B, 0.00%, 10/25/28			1,000		220,000
Merrill Lynch Alternative Note Asset Trust, Series 2007-OAR2, Class A2, 2.61%, 04/25/37(d)			224		195,070
Mortgage Loan Resecuritization Trust, Series 2009-RS1, Class A85, 2.78%, 04/16/36(b)(d)			418		365,088
New Residential Mortgage Loan Trust(b): Series 2019-2A, Class A1, 4.25%, 12/25/57(d)			104		108,540

26 2019 BLACK ROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Collateralized Mortgage Obligations (continued)
Series 2019-RPL1, Class A1, 4.33%, 02/26/24(e)	USD		798	$	809,065
Nomura Asset Acceptance Corp. Alternative Loan Trust, Series 2007-2, Class A4, 2.82%, 06/25/37(d)			17		14,267
RALI Trust, Series 2007-QH9, Class A1, 3.75%, 11/25/37(d)			40		36,757
Reperforming Loan REMIC Trust, Series 2005-R3, Class AF, 2.80%, 09/25/35(b)(d)			6		5,904
Seasoned Credit Risk Transfer Trust(d):
Series 2017-3, Class M2, 4.75%, 07/25/56(b)			100		98,604
Series 2018-1, Class BX, 6.32%, 05/25/57(c)			20		10,457
Series 2018-1, Class M, 4.75%, 05/25/57			20		19,561
Series 2018-3, Class M, 4.75%, 08/25/57(b)			90		88,548
STACR Trust, Series 2018-DNA2, Class M2, 4.55%, 12/25/30(b)(d)			47		47,271
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-3, Class 4A, 4.11%, 04/25/36(d)			73		61,344
Structured Asset Mortgage Investments II Trust(d):
Series 2006-AR4, Class 3A1, 2.59%, 06/25/36(c)			98		88,984
Series 2006-AR5, Class 2A1, 2.61%, 05/25/46			63		54,220
WaMu Mortgage Pass-Through Certificates Trust, Series 2005-AR2, Class B1, 2.93%, 01/25/45(d)			98		74,401
Washington Mutual Mortgage Pass-Through Certificates WMALT Trust:
Series 2006-4, Class 1A1, 6.00%, 04/25/36			91		85,175
Series 2006-4, Class 3A1, 6.50%, 05/25/36(e)			47		42,220
					10,441,539
Commercial Mortgage-Backed Securities — 2.7%
245 Park Avenue Trust, Series 2017-245P, Class E, 3.78%, 06/05/37(b)(d)			200		195,540
280 Park Avenue Mortgage Trust(b)(d):
Series 2017-280P, Class D, 3.93%, 09/15/34			100		100,186
Series 2017-280P, Class E, 4.51%, 09/15/34			150		150,376
AOA Mortgage Trust, Series 2015-1177, Class C, 3.11%, 12/13/29(b)(d)			100		99,926
Ashford Hospitality Trust, Series 2018-ASHF, Class D, 4.49%, 04/15/35(b)(d)			70		70,284
BAMLL Commercial Mortgage Securities Trust(b)(d):
Series 2015-200P, Class F, 3.72%, 04/14/33			300		299,116
Series 2016-ISQ, Class E, 3.73%, 08/14/34			200		194,723
Series 2017-SCH, Class CL, 3.89%, 11/15/32			100		100,000
Series 2017-SCH, Class DL, 4.39%, 11/15/32			100		100,000
Series 2018-DSNY, Class D, 4.09%, 09/15/34			650		652,335
Banc of America Commercial Mortgage Trust, Series 2007-1, Class AMFX, 5.48%, 01/15/49(d)			10		10,169
Bancorp Commercial Mortgage Trust (The), Series 2018-CR3, Class A, 3.24%, 01/15/33(b)(d)			77		76,973
Bayview Commercial Asset Trust(b)(d):
Series 2005-2A, Class A1, 2.71%, 08/25/35			55		52,944
Series 2005-4A, Class A1, 2.70%, 01/25/36			50		48,125
Series 2005-4A, Class M1, 2.85%, 01/25/36			36		35,124
Series 2006-1A, Class A2, 2.76%, 04/25/36			13		12,093

Security		Par         (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2006-3A, Class A1, 2.65%, 10/25/36	USD		23	$	21,571
Series 2006-3A, Class A2, 2.70%, 10/25/36			19		18,018
Series 2007-2A, Class A1, 2.67%, 07/25/37			35		33,065
Series 2007-4A, Class A1, 2.85%, 09/25/37			180		171,138
BBCMS Mortgage Trust, Series 2018-TALL, Class A, 3.12%, 03/15/37(b)(d)			35		34,868
BBCMS Trust, Series 2015-SRCH, Class A1, 3.31%, 08/10/35(b)			100		103,489
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T26, Class AM, 5.51%, 01/12/45(d)			36		35,973
Benchmark Mortgage Trust(d):
Series 2019-B10, Class 3CCA, 4.03%, 03/15/62(b)			198		203,231
Series 2019-B9, Class C, 4.97%, 03/15/52			128		142,696
BHMS, Series 2018-ATLS, Class A, 3.64%, 07/15/35(b)(d)			140		140,042
BWAY Mortgage Trust(b):
Series 2013-1515, Class A2, 3.45%, 03/10/33			150		157,298
Series 2013-1515, Class C, 3.45%, 03/10/33			105		107,332
BX Commercial Mortgage Trust, Series 2018-IND, Class H, 5.39%, 11/15/35(b)(d)			430		431,769
BXP Trust(b)(d):
Series 2017-CC, Class D, 3.67%, 08/13/37			60		59,577
Series 2017-CC, Class E, 3.67%, 08/13/37			110		104,072
Series 2017-GM, Class D, 3.54%, 06/13/39			200		202,269
Series 2017-GM, Class E, 3.54%, 06/13/39			50		48,204
CAMB Commercial Mortgage Trust, Series 2019-LIFE, Class D, 4.14%, 12/15/37(b)(d)			218		219,361
CCRESG Commercial Mortgage Trust, Series 2016-HEAT, Class D, 5.67%, 04/10/29(b)(d)			20		20,479
CD Mortgage Trust:
Series 2006-CD3, Class AM, 5.65%, 10/15/48			21		21,434
Series 2017-CD3, Class A4, 3.63%, 02/10/50			30		31,996
CFCRE Commercial Mortgage Trust, Series 2016-C3, Class A3, 3.87%, 01/10/48			10		10,697
CFK Trust, Series 2019-FAX, Class D, 4.64%, 01/15/39(b)			126		139,285
CGBAM Commercial Mortgage Trust, Series 2015-SMRT, Class E, 3.91%, 04/10/28(b)(d)			100		100,794
CGDBB Commercial Mortgage Trust(b)(d):
Series 2017-BIOC, Class A, 3.18%, 07/15/32			190		190,000
Series 2017-BIOC, Class D, 3.99%, 07/15/32			110		110,207
Series 2017-BIOC, Class E, 4.54%, 07/15/32			270		270,000
Citigroup Commercial Mortgage Trust(d): Series 2016-C1, Class C, 5.12%, 05/10/49			40		43,736
Series 2016-GC37, Class C, 5.09%, 04/10/49			20		21,445
Series 2016-P3, Class C, 4.99%, 04/15/49			10		10,777
Series 2016-P3, Class D, 2.80%, 04/15/49(b)			10		8,645
CLNS Trust, Series 2017-IKPR, Class E, 5.91%, 06/11/32(b)(d)			63		63,315
Commercial Mortgage Pass-Through
Certificates, Series 2014-CR14, Class A4, 4.24%, 02/10/47(d)			30		32,312
Commercial Mortgage Trust:
Series 2005-C6, Class F, 5.90%, 06/10/44(b)(d)			84		85,915

SCHEDULE OF INVESTMENTS 27

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2014-CR16, Class A4, 4.05%, 04/10/47	USD		177	$	189,472
Series 2014-CR17, Class A5, 3.98%, 05/10/47			59		63,189
Series 2014-CR19, Class A5, 3.80%, 08/10/47			50		53,236
Series 2014-LC15, Class A4, 4.01%, 04/10/47			50		53,367
Series 2014-UBS4, Class C, 4.78%, 08/10/47(d)			50		51,777
Series 2015-CR23, Class CMD, 3.81%, 05/10/48(b)(d)			350		350,366
Series 2015-CR25, Class A4, 3.76%, 08/10/48			100		106,834
Series 2015-LC19, Class A4, 3.18%, 02/10/48			59		61,187
Series 2015-LC19, Class C, 4.40%, 02/10/48(d)			10		10,504
Series 2015-LC19, Class D, 2.87%, 02/10/48(b)			20		18,410
Series 2015-LC21, Class C, 4.44%, 07/10/48(d)			150		156,514
Series 2016-667M, Class D, 3.28%, 10/10/36(b)(d)			100		95,355
Core Industrial Trust(b):
Series 2015-TEXW, Class A, 3.08%, 02/10/34			99		101,649
Series 2015-WEST, Class A, 3.29%, 02/10/37			540		567,230
Credit Suisse First Boston Mortgage
Securities Corp., Series 2004-C4, Class F, 5.23%, 10/15/39(b)(d)			330		329,495
CSAIL Commercial Mortgage Trust, Series 2015-C2, Class A4, 3.50%, 06/15/57			50		52,309
CSMC Trust(b):
Series 2015-GLPB, Class A, 3.64%, 11/15/34			100		104,387
Series 2017-PFHP, Class A, 3.34%, 12/15/30(d)			60		59,773
Series 2017-TIME, Class A, 3.65%, 11/13/39			100		103,859
CSWF, Series 2018-TOP, Class A, 3.39%, 08/15/35(b)(d)			100		100,061
DBGS Mortgage Trust, Series 2019-1735, Class F, 4.33%, 04/10/37(b)(d)			100		95,836
DBUBS Mortgage Trust(b):
Series 2017-BRBK, Class A, 3.45%, 10/10/34			140		146,840
Series 2017-BRBK, Class E, 3.65%, 10/10/34(d)			310		311,203
Series 2017-BRBK, Class F, 3.65%, 10/10/34(d)			80		79,065
Eleven Madison Mortgage Trust, Series 2015-11MD, Class A, 3.67%, 09/10/35(b)(d)			100		105,923
Exantas Capital Corp. Ltd.(b)(d):
Series 2018-RSO6, Class A, 3.22%, 06/15/35			160		160,108
Series 2019-RSO7, Class AS, 3.89%, 04/15/36			160		160,000
GPMT Ltd., Series 2018-FL1, Class A, 3.28%, 11/21/35(b)(d)			61		61,331
GRACE Mortgage Trust, Series 2014-GRCE, Class F, 3.71%, 06/10/28(b)(d)			330		330,254
GS Mortgage Securities Corp. II(b):
Series 2005-ROCK, Class A, 5.37%, 05/03/32			100		114,989

Security		Par         (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2013-KING, Class D, 3.55%, 12/10/27(d)	USD		124	$	123,734
Series 2013-KING, Class E, 3.55%, 12/10/27(d)			460		458,309
GS Mortgage Securities Corp. Trust(b):
Series 2017-500K, Class D, 3.69%, 07/15/32(d)			10		9,969
Series 2017-500K, Class E, 3.89%, 07/15/32(d)			20		19,994
Series 2017-500K, Class F, 4.19%, 07/15/32(d)			110		109,520
Series 2017-GPTX, Class A, 2.86%, 05/10/34			100		100,428
GS Mortgage Securities Trust:
Series 2015-GC32, Class C, 4.56%, 07/10/48(d)			30		31,650
Series 2017-GS6, Class A3, 3.43%, 05/10/50			150		157,815
Series 2017-GS7, Class A4, 3.43%, 08/10/50			76		79,166
Series 2017-GS7, Class D, 3.00%, 08/10/50(b)			20		17,928
HMH Trust, Series 2017-NSS, Class A, 3.06%, 07/05/31(b)			110		111,448
IMT Trust(b):
Series 2017-APTS, Class AFX, 3.48%, 06/15/34			100		104,725
Series 2017-APTS, Class EFX, 3.61%, 06/15/34(d)			100		98,866
JPMBB Commercial Mortgage Securities Trust:
Series 2014-C21, Class A5, 3.77%, 08/15/47			50		52,890
Series 2015-C33, Class D1, 4.27%, 12/15/48(b)(d)			100		99,446
JPMCC Commercial Mortgage Securities Trust:
Series 2017-JP5, Class C, 4.05%, 03/15/50(d)			110		112,887
Series 2017-JP5, Class D, 4.80%, 03/15/50(b)(d)			100		102,278
Series 2017-JP7, Class B, 4.05%, 09/15/50			10		10,542
JPMDB Commercial Mortgage Securities Trust(d):
Series 2017-C5, Class C, 4.51%, 03/15/50			300		317,945
Series 2017-C5, Class D, 4.72%, 03/15/50(b)			121		123,160
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2012-CBX, Class A4FL, 3.69%, 06/15/45(b)(d)			100		101,811
Series 2014-C20, Class A5, 3.80%, 07/15/47			70		73,821
Series 2015-JP1, Class D, 4.39%, 01/15/49(d)			50		50,568
Series 2015-UES, Class D, 3.74%, 09/05/32(b)(d)			130		130,676
Series 2015-UES, Class E, 3.74%, 09/05/32(b)(d)			100		100,142
Series 2016-NINE, Class A, 2.95%, 10/06/38(b)(d)			150		152,440
Lehman Brothers Small Balance Commercial Mortgage Trust, Series 2007-1A, Class 1A, 2.65%, 03/25/37(b)(d)			41		40,187
LSTAR Commercial Mortgage Trust, Series 2015-3, Class AS, 3.27%, 04/20/48(b)(d)			100		101,675
Madison Avenue Trust, Series 2013-650M, Class D, 4.17%, 10/12/32(b)(d)			101		102,048
Merrill Lynch Mortgage Trust, Series 2005-MKB2, Class F, 6.53%, 09/12/42(b)(d)			100		101,248

28 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Commercial Mortgage-Backed Securities (continued)
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2014-C16, Class A5, 3.89%, 06/15/47	USD		140	$	149,030
Series 2015-C26, Class D, 3.06%, 10/15/48(b)			46		42,616
Morgan Stanley Capital I Trust:
Series 2007-T27, Class AJ, 6.14%, 06/11/42(d)			76		80,317
Series 2015-MS1, Class D, 4.17%, 05/15/48(b)(d)			100		96,591
Series 2017-CLS, Class F, 4.99%, 11/15/34(b)(d)			211		210,065
Series 2017-H1, Class D, 2.55%, 06/15/50(b)			140		117,739
Series 2017-JWDR, Class D, 4.34%, 11/15/34(b)(d)			30		30,155
Series 2017-JWDR, Class E, 5.44%, 11/15/34(b)(d)			39		39,317
Series 2019-AGLN, Class D, 4.14%, 03/15/34(b)(d)			150		149,998
Series 2019-AGLN, Class F, 4.99%, 03/15/34(b)(d)			150		150,188
Natixis Commercial Mortgage Securities Trust, Series 2018-FL1, Class MCR1, 4.74%, 06/15/35(b)(d)			91		90,510
Olympic Tower Mortgage Trust, Series 2017-OT, Class E, 4.08%, 05/10/39(b)(d)			190		185,843
PFP Ltd.(b)(d):
Series 2019-5, Class A, 3.37%, 04/14/36			63		63,000
Series 2019-5, Class AS, 3.82%, 04/14/36			40		40,000
Prima Capital CRE Securitization Ltd., Series 2015-4A, Class C, 4.00%, 08/24/49(b)(c)			100		99,700
USDC, Series 2018-USDC, Class E, 4.64%, 05/13/38(b)(d)			50		52,113
Velocity Commercial Capital Loan Trust(d):
Series 2016-2, Class M4, 7.23%, 10/25/46.			100		105,593
Series 2017-2, Class M3, 4.24%, 11/25/47(b)			156		158,275
Series 2017-2, Class M4, 5.00%, 11/25/47(b)			78		79,362
Wells Fargo Commercial Mortgage Trust:
Series 2015-C27, Class C, 3.89%, 02/15/48			20		19,920
Series 2015-C31, Class A4, 3.70%, 11/15/48			50		53,290
Series 2015-NXS2, Class A5, 3.77%, 07/15/58(d)			110		117,400
Series 2015-NXS4, Class A4, 3.72%, 12/15/48			20		21,324
Series 2015-P2, Class A4, 3.81%, 12/15/48			70		75,056
Series 2015-P2, Class D, 3.24%, 12/15/48(b)			78		68,329
Series 2017-C39, Class C, 4.12%, 09/15/50			20		20,307
Series 2017-C39, Class D, 4.50%, 09/15/50(b)(d)			83		82,026
Series 2017-C41, Class D, 2.60%, 11/15/50(b)(d)			60		51,263
Series 2017-HSDB, Class A, 3.26%, 12/13/31(b)(d)			151		150,446
Series 2018-C44, Class A5, 4.21%, 05/15/51			770		856,167
Series 2019-C49, Class A5, 4.02%, 03/15/52			100		109,761
WFRBS Commercial Mortgage Trust:
Series 2011-C3, Class A3FL, 3.34%, 03/15/44(b)(d)			2		2,354
Series 2014-C21, Class A5, 3.68%, 08/15/47			60		63,399
					16,616,217

Security		Par         (000)		Value
Interest Only Commercial Mortgage-Backed Securities — 0.3%(d)
BAMLL Commercial Mortgage Securities Trust, Series 2016-SS1, Class XA, 0.70%, 12/15/35(b)	USD		15,000	$	513,750
Banc of America Commercial Mortgage Trust, Series 2017-BNK3, Class XB, 0.78%, 02/15/50			1,000		44,229
BBCMS Trust, Series 2015-SRCH, Class XA, 1.12%, 08/10/35(b)			1,030		63,129
BB-UBS Trust, Series 2012-SHOW, Class XA, 0.73%, 11/05/36(b)			3,475		108,306
Benchmark Mortgage Trust:
Series 2018-B8, Class XA, 0.83%, 01/15/52			4,996		258,658
Series 2019-B9, Class XA, 1.22%, 03/15/52			1,049		86,849
CFCRE Commercial Mortgage Trust, Series 2016-C4, Class XB, 0.89%, 05/10/58			170		7,839
Commercial Mortgage Trust:
Series 2015-3BP, Class XA, 0.17%, 02/10/35(b)			1,916		10,308
Series 2015-CR25, Class XA, 1.05%, 08/10/48			336		14,073
CSAIL Commercial Mortgage Trust, Series 2017-CX10, Class XB, 0.22%, 11/15/50			1,430		23,958
JPMBB Commercial Mortgage Securities Trust:
Series 2014-C22, Class XA, 1.01%, 09/15/47			1,233		44,022
Series 2014-C23, Class XA, 0.84%, 09/15/47			1,335		34,378
JPMDB Commercial Mortgage Securities Trust, Series 2016-C4, Class XC, 0.75%, 12/15/49(b)			1,800		85,329
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2016-JP3, Class XC, 0.75%, 08/15/49(b)			900		41,103
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2014-C19, Class XF, 1.33%, 12/15/47(b)			130		6,627
Series 2015-C26, Class XD, 1.49%, 10/15/48(b)			120		9,029
Series 2016-C31, Class XA, 1.57%, 11/15/49			969		73,619
Morgan Stanley Capital I Trust:
Series 2016-UBS9, Class XD, 1.69%, 03/15/49(b)			1,000		92,980
Series 2017-H1, Class XD, 2.36%, 06/15/50(b)			110		16,314
Series 2019-L2, Class XA, 1.20%, 03/15/52			386		31,936
One Market Plaza Trust(b):
Series 2017-1MKT, Class XCP, 0.22%, 02/10/32			1,880		7,219
Series 2017-1MKT, Class XNCP, 0.00%, 02/10/32(c)			376		4
UBS Commercial Mortgage Trust, Series 2018-C14, Class XA, 1.18%, 12/15/51			1,156		87,400
Wells Fargo Commercial Mortgage Trust, Series 2016-BNK1, Class XD, 1.41%, 08/15/49(b)			1,000		73,290
					1,734,349
Principal Only Collateralized Mortgage Obligations — 0.0%
Seasoned Credit Risk Transfer Trust, Series 2017-3, Class B, 0.00%, 07/25/56(b)(j)			118		10,196
Total Non-Agency Mortgage-Backed Securities — 4.7% (Cost: $28,289,179)					28,802,301

SCHEDULE OF INVESTMENTS 29

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Beneficial Interest (000)		Value
Other Interests — 0.0%(o)
Capital Markets — 0.0%(c)(g)(h)
Lehman Brothers Holdings Capital Trust VII	USD		185	$	—
Lehman Brothers Holdings, Inc.			1,365		—
					—
Total Other Interests — 0.0%					—
		Par (000)
Capital Trusts — 0.2%
Capital Markets — 0.1%(f)(k)
Bank of New York Mellon Corp. (The), Series F, 4.62%(h)			270		268,842
State Street Corp.:
Series F, 5.25%			205		210,287
Series H, 5.63%			335		337,931
					817,060
Entertainment — 0.1%
NBCUniversal Enterprise, Inc., 5.25%(b)(f)(h)			620		634,880
Total Capital Trusts — 0.2% (Cost: $1,444,515)					1,451,940
U.S. Government Sponsored Agency Securities — 38.4%
Collateralized Mortgage Obligations — 0.0%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes, Series 2017-DNA3, Class B1, (LIBOR USD 1 Month + 4.45%), 6.85%, 03/25/30(a)			250		270,843
Commercial Mortgage-Backed Securities — 0.1%
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Series K076, Class A2, 3.90%, 04/25/28			42		46,645
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes, Series KL4F, Class A2AS, 3.68%, 10/25/25(k)			71		75,414
Federal Home Loan Mortgage Corp. Variable Rate Notes(k):
Series 2017-K64, Class B, 4.12%, 05/25/50(b)			20		20,928
Series 2018-K77, Class B, 4.30%, 05/25/51(b)			20		21,047
Series 2018-K732, Class B, 4.19%, 05/25/25(b)			100		104,250
Series 2018-SB52, Class A10F, 3.48%, 06/25/28			79		83,454
Series 2018-SB53, Class A10F, 3.66%, 06/25/28			48		50,796
Government National Mortgage Association:
Series 2015-97, Class VA, 2.25%, 12/16/38			33		31,842
Series 2016-158, Class VA, 2.00%, 03/16/35			88		83,285
					517,661
Interest Only Commercial Mortgage-Backed Securities — 0.0%
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes, Series KW03, Class X1, 0.98%, 06/25/27(k)			267		13,824
Federal National Mortgage Association ACES Variable Rate Notes(k):
Series 2013-M5, Class X2, 2.36%, 01/25/22			288		7,303
Series 2017-M12, Class X, 0.44%, 06/25/27			462		12,640

Security		Par         (000)		Value
Interest Only Commercial Mortgage-Backed Securities (continued)
Government National Mortgage Association Variable Rate Notes:
Series 2013-63, 0.79%, 09/16/51(k)	USD		588	$	31,304
Series 2013-191, 0.74%, 11/16/53(k)			98		3,296
Series 2015-48, 0.69%, 02/16/50(k)			192		8,698
Series 2015-173, 0.89%, 09/16/55(k)			226		15,028
Series 2016-26, 0.96%, 02/16/58(k)			592		42,702
Series 2016-67, 1.17%, 07/16/57(k)			151		12,113
Series 2016-87, 1.00%, 08/16/58(k)			267		20,269
Series 2016-110, 1.03%, 05/16/58(k)			194		14,868
Series 2016-113, (LIBOR USD 1 Month + 0.00%), 1.18%, 02/16/58(a)			291		26,926
Series 2016-119, (LIBOR USD 1 Month + 0.00%), 1.12%, 04/16/58(a)			200		15,526
Series 2016-125, 1.06%, 12/16/57(k)			292		23,368
Series 2016-128, 0.95%, 09/16/56(k)			152		11,355
Series 2016-152, 0.93%, 08/15/58(k)			535		39,935
Series 2016-162, 1.00%, 09/16/58(k)			124		10,144
					309,299
Mortgage-Backed Securities — 38.3%
Federal Home Loan Mortgage Corp.:
2.50%, 02/01/24 - 04/01/31			662		667,874
3.00%, 09/01/27 - 04/01/47			5,422		5,520,848
3.50%, 09/01/30 - 01/01/48			9,223		9,610,189
4.00%, 08/01/40 - 08/01/47			2,745		2,904,634
4.50%, 02/01/39 - 04/01/49			7,295		7,833,573
5.00%, 10/01/41 - 11/01/41			179		192,967
5.50%, 02/01/35 - 06/01/41			204		223,554
Federal National Mortgage Association:
4.00%, 01/01/41			32		33,388
6.00%, 07/01/39			158		177,850
Government National Mortgage Association:
3.00%, 02/15/45 - 12/20/46			6,043		6,186,760
3.00%, 07/15/49 - 08/15/49(p)			18,728		19,131,958
3.50%, 01/15/42 - 11/20/46			15,484		16,030,552
3.50%, 07/15/49 - 08/15/49(p)			1,584		1,636,289
4.00%, 04/20/39 - 10/20/46			737		780,564
4.00%, 07/15/49(p)			10,033		10,400,097
4.50%, 12/20/39 - 09/20/48			3,100		3,258,530
4.50%, 07/15/49(p)			2,649		2,761,143
5.00%, 12/15/38 - 07/20/44			181		198,800
5.00%, 07/15/49(p)			1,806		1,887,870
Uniform Mortgage-Backed Securities:
2.00%, 10/01/31 - 03/01/32			611		604,552
2.50%, 09/01/27 - 02/01/33			3,325		3,352,044
2.50%, 06/25/34 - 08/25/34(p)			1,966		1,979,340
3.00%, 04/01/28 - 11/01/48			12,514		12,751,941
3.00%, 07/25/34 - 07/25/49(p)			21,711		21,932,687
3.50%, 03/01/29 - 01/01/48			13,775		14,328,189
3.50%, 07/25/34 - 07/25/49(p)			8,130		8,317,981
4.00%, 08/01/31 - 08/01/48			17,822		18,899,371
4.00%, 07/25/49(p)			6,991		7,225,444
4.50%, 02/01/25 - 05/01/49			18,104		19,530,041
4.50%, 07/25/49 - 08/25/49(p)			30,628		32,000,758
5.00%, 02/01/35 - 06/01/45			1,201		1,306,890
5.00%, 07/25/49(p)			1,605		1,696,566
5.50%, 02/01/35 - 03/01/40			599		657,958
5.50%, 07/25/49(p)			987		1,052,726
6.00%, 04/01/35 - 06/01/41			334		379,119
6.00%, 07/25/49(p)			172		188,340

30 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security		Par         (000)		Value
Mortgage-Backed Securities (continued)
6.50%, 05/01/40	USD		134	$	157,070
					235,798,457
Total U.S. Government Sponsored Agency Securities — 38.4% (Cost: $233,959,442)					236,896,260
U.S. Treasury Obligations — 17.7%
U.S. Treasury Bonds:
4.25%, 05/15/39			480		627,937
4.50%, 08/15/39			480		648,375
4.38%, 11/15/39			480		638,212
3.13%, 02/15/43			1,810		2,018,291
2.88%, 05/15/43 - 11/15/46			3,550		3,797,992
3.63%, 08/15/43			1,810		2,184,797
3.75%, 11/15/43			1,810		2,228,138
3.00%, 02/15/48 - 02/15/49			2,300		2,521,222
U.S. Treasury Inflation Linked Notes, 0.50%, 04/15/24			18,964		19,200,558
U.S. Treasury Notes:
2.00%, 07/31/20 - 02/15/25			14,850		14,940,170
2.50%, 12/31/20			5,240		5,290,763
2.25%, 03/31/21 - 08/15/27			8,540		8,664,080
1.13%, 07/31/21			7,860		7,758,680
1.50%, 01/31/22 - 08/15/26			12,040		11,872,063
1.75%, 04/30/22			6,630		6,635,698
2.13%, 12/31/22 - 05/15/25			14,380		14,611,308
2.75%, 05/31/23			3,500		3,633,848
2.88%, 08/15/28			1,050		1,128,340
3.13%, 11/15/28			655		718,428
2.63%, 02/15/29			53		55,890
Total U.S. Treasury Obligations — 17.7% (Cost: $106,618,089)					109,174,790
Total Long-Term Investments — 115.0% (Cost: $691,194,252)					708,665,192
Short-Term Securities — 2.1%
Borrowed Bond Agreements — 0.2%(q)
Bank of America Securities, Inc., 1.80%, 07/01/19 (Purchased on 06/28/19 to be repurchased at USD 422,343, collateralized by U.S. Treasury Notes, 2.38%, due at 05/15/29, par and fair value of USD 408,000 and $421,626, respectively)			422		422,281
Bank of America Securities, Inc., 2.30%, 07/01/19 (Purchased on 06/28/19 to be repurchased at USD 431,730, collateralized by U.S. Treasury Bonds, 2.88%, due at 05/15/49, par and fair value of USD 402,000 and $431,271, respectively)			432		431,647
Credit Suisse Securities USA LLC, 1.75%, Open (Purchased on 06/13/19 to be repurchased at USD 90,385, collateralized by YPF SA, 8.50%, due at 03/23/21, par and fair value of USD 88,000 and $89,485, respectively)(r)			90		90,310
Total Borrowed Bond Agreements — 0.2% (Cost: $944,238)					944,238

Security		Par         (000)		Value
Foreign Government Obligations — 0.1%
Egypt — 0.1%
Arab Republic of Egypt Treasury Bills(s):
18.20%, 07/30/19	EGP		1,475	$	87,332
19.40%, 08/06/19			1,475		87,055
19.19%, 08/20/19			1,475		86,478
21.35%, 08/27/19			1,500		84,535
18.32%, 09/10/19			2,950		171,033
19.33%, 11/05/19			1,475		83,385
					599,818
Nigeria — 0.0%
Federal Republic of Nigeria Treasury Bills(s):
13.38%, 07/04/19	NGN		8,527		23,634
14.36%, 08/15/19			17,054		46,762
14.40%, 09/12/19			11,370		30,827
14.33%, 10/03/19			5,685		15,335
12.30%, 11/28/19			11,370		30,064
14.71%, 01/16/20			11,370		29,515
13.57%, 05/28/20			11,370		28,245
					204,382
Total Foreign Government Obligations — 0.1% (Cost: $776,177)					804,200
		Shares
Money Market Funds — 1.8%(t)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 2.26%*			11,143,156		11,143,156
JPMorgan US Treasury Plus Money Market Fund, Agency Class, 2.17%			140,906		140,906
Total Money Market Funds — 1.8% (Cost: $11,284,062)					11,284,062
Total Short-Term Securities — 2.1% (Cost: $13,004,477)					13,032,500
Total Options Purchased — 0.0% (Cost: $275,243)					181,152
Total Investments Before Options Written, Borrowed Bonds and TBA Sale Commitments — 117.1% (Cost: $704,473,972)					721,878,844
Total Options Written — (0.0)%
(Premium Received — $93,733)					(59,678	)
		Par (000)
Borrowed Bonds — (0.1)%
Foreign Agency Obligations — (0.0)%
YPF SA, 8.50%, 03/23/21	USD		88		(89,485	)
Total Foreign Agency Obligations — (0.0)% (Proceeds: $85,687)					(89,485	)
U.S. Treasury Obligations — (0.1)%
U.S. Treasury Bonds, 2.88%, 05/15/49			402		(431,271	)
U.S. Treasury Notes, 2.38%, 05/15/29			408		(421,626	)
					(852,897	)

SCHEDULE OF INVESTMENTS 31

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund (Percentages shown are based on Net Assets)

Security	Par         (000)		Value
Borrowed Bonds (continued)
Total U.S. Treasury Obligations — (0.1)% (Proceeds: $846,959)			$	(852,897)
Total Borrowed Bonds — (0.1)% (Proceeds: $932,646)				(942,382)
TBA Sale Commitments — (9.1)%(p)
Mortgage-Backed Securities — (9.1)%
Government National Mortgage Association:
3.00%, 07/15/49		13,125		(13,412,622)
3.50%, 07/15/49		500		(516,504)

Security		Par         (000)		Value
TBA Sale Commitments (continued)
4.50%, 07/15/49	USD		100	$	(105,296)
Uniform Mortgage-Backed Securities:
2.50%, 06/25/34			184		(185,091)
4.00%, 07/25/34			395		(410,044)
3.00%, 07/25/49			10,568		(10,658,199)
3.50%, 07/25/49 - 08/25/49			13,662		(13,966,560)
4.50%, 07/25/49			15,954		(16,671,151)
Total TBA Sale Commitments — (9.1)% (Proceeds: $55,759,302)					(55,925,467)
Total Investments Net of Options Written, Borrowed Bonds and TBA Sale Commitments — 107.9% (Cost: $647,688,291)					664,951,317
Liabilities in Excess of Other Assets — (7.9)%					(48,698,230)
Net Assets — 100.0%				$	616,253,087

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

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

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

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

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

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

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

^(h)  Non-income producing security.

⁽ⁱ⁾  Convertible security.

^(j)  Zero-coupon bond.

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

^(l) Variable rate security. Rate as of period end and maturity is the date the principal owed can be recovered through demand.

^(m) When-issued security.

⁽ⁿ⁾  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

^(o)  Other interests represent beneficial interests in liquidation trusts and other reorganizational or private entities.

^(p) Represents or includes a TBA transaction.

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

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

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

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

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

Affiliated Persons and/or Related Parties	Shares Held at 12/31/18		Shares Purchased		Shares Sold			Shares Held at 06/30/19		Value at 06/30/19		Income		Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class		22,894,841		—		(11,751,685	)(b)		11,143,156	$	11,143,156	$	282,546	$	—	$	—
BlackRock Allocation Target Shares-BATS Series A		—		1,635,282		—			1,635,282		16,500,000		24,489		—		—
										$	27,643,156	$	307,035	$	—	$	—

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

^(b)  Represents net shares sold.

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

32 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro-Bund		106		09/06/19	$	20,821	$	70,545
Euro-Buxl		14		09/06/19		3,230		53,920
U.S. Treasury 10 Year Ultra Note		102		09/19/19		14,089		125,093
U.S. Treasury Ultra Bond		159		09/19/19		28,232		599,202
U.S. Treasury 2 Year Note		336		09/30/19		72,300		79,303
U.S. Treasury 5 Year Note		352		09/30/19		41,591		173,601
								1,101,664
Short Contracts
U.S. Treasury 10 Year Note		339		09/19/19		43,381		(431,417)
U.S. Treasury Long Bond		16		09/19/19		2,490		(26,515)
								(457,932)
							$	643,732

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
BRL	704,550	USD	183,000	Bank of America NA		07/02/19	$	479
BRL	442,922	USD	115,000	Citibank NA		07/02/19		346
BRL	1,194,777	USD	306,000	Credit Suisse International		07/02/19		5,144
BRL	358,722	USD	90,000	Goldman Sachs International		07/02/19		3,418
BRL	494,011	USD	127,000	Morgan Stanley & Co. International plc		07/02/19		1,650
USD	388,516	MXN	7,443,000	Deutsche Bank AG		07/03/19		797
TWD	3,793,200	USD	120,000	BNP Paribas SA		07/05/19		2,295
TWD	969,175	USD	30,855	UBS AG		07/05/19		392
TRY	354,355	USD	60,329	UBS AG		07/08/19		666
ZAR	1,531,073	USD	105,600	Citibank NA		07/08/19		3,020
TRY	279,689	USD	44,000	UBS AG		07/10/19		4,089
IDR	2,488,200,000	USD	174,000	BNP Paribas SA		07/16/19		1,918
COP	397,243,000	USD	121,000	UBS AG		07/17/19		2,490
EGP	898,050	USD	51,288	Citibank NA		07/17/19		2,209
EGP	694,566	USD	39,712	JPMorgan Chase Bank NA		07/17/19		1,663
USD	121,000	COP	387,442,000	Natwest Markets plc		07/17/19		557
CLP	85,095,000	USD	122,000	Morgan Stanley & Co. International plc		07/24/19		3,621
IDR	8,061,890,000	USD	562,000	Bank of America NA		07/24/19		7,347
IDR	6,127,924,695	USD	432,479	Citibank NA		07/24/19		287
KRW	214,347,900	USD	183,000	Bank of America NA		07/24/19		2,298
MXN	2,972,277	USD	154,000	Bank of America NA		07/24/19		287
MXN	2,218,847	USD	115,000	Morgan Stanley & Co. International plc		07/24/19		177
PLN	687,879	USD	183,000	Bank of America NA		07/24/19		1,353
PLN	147,952	USD	38,896	BNP Paribas SA		07/24/19		756
PLN	369,819	USD	97,239	Deutsche Bank AG		07/24/19		1,874
PLN	60,341	USD	15,866	JPMorgan Chase Bank NA		07/24/19		306
TRY	358,558	USD	61,000	Bank of America NA		07/24/19		156
TRY	719,952	USD	122,000	BNP Paribas SA		07/24/19		797
USD	122,000	CLP	82,618,400	Credit Suisse International		07/24/19		35
USD	245,000	KRW	283,391,500	Bank of America NA		07/24/19		16
USD	338,000	KRW	390,562,000	BNP Paribas SA		07/24/19		370
USD	122,000	MXN	2,339,655	Bank of America NA		07/24/19		552
USD	65,550	MXN	1,260,494	Barclays Bank plc		07/24/19		119
USD	316,628	MXN	6,093,717	BNP Paribas SA		07/24/19		311
USD	122,000	MXN	2,328,394	Citibank NA		07/24/19		1,136
USD	152,000	PLN	566,706	Deutsche Bank AG		07/24/19		121
USD	123,000	RUB	7,761,300	BNP Paribas SA		07/24/19		610
ZAR	2,784,004	USD	190,262	Bank of America NA		07/24/19		6,843

SCHEDULE OF INVESTMENTS 33

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
ZAR	4,924,505	USD	343,905	BNP Paribas SA		07/24/19	$	4,745
ZAR	560,170	USD	38,905	Morgan Stanley & Co. International plc		07/24/19		755
ZAR	1,004,194	USD	68,929	UBS AG		07/24/19		2,168
BRL	2,358,704	USD	611,000	Credit Suisse International		08/02/19		1,448
USD	3,541,819	EUR	3,104,000	UBS AG		08/06/19		1,782
ARS	2,162,000	USD	46,000	BNP Paribas SA		08/21/19		1,153
USD	797,346	MXN	15,417,067	Barclays Bank plc		08/21/19		999
EGP	3,084,250	USD	169,000	Citibank NA		09/09/19		11,707
BRL	3,263,500	USD	841,000	Morgan Stanley & Co. International plc		09/18/19		2,425
CAD	162,095	USD	121,000	BNP Paribas SA		09/18/19		2,959
CAD	209,659	USD	160,000	Citibank NA		09/18/19		332
CHF	1,374,000	JPY	151,077,486	Citibank NA		09/18/19		8,182
JPY	49,414,261	USD	458,000	Standard Chartered Bank		09/18/19		3,006
NZD	1,145,000	SEK	7,015,276	Bank of America NA		09/18/19		10,614
USD	458,000	SEK	4,209,844	Bank of America NA		09/18/19		2,080
USD	2,019,000	TWD	62,265,960	Bank of America NA		09/18/19		968
USD	1,504,520	EUR	1,160,000	Deutsche Bank AG		12/13/19		168,370
USD	1,514,264	EUR	1,160,000	Deutsche Bank AG		02/25/20		171,167
JPY	154,610,000	USD	1,432,635	JPMorgan Chase Bank NA		03/16/20		28,194
USD	1,543,322	JPY	154,610,000	HSBC Bank plc		03/16/20		82,492
								566,051
USD	120,684	BRL	466,625	BNP Paribas SA		07/02/19		(834	)
USD	611,000	BRL	2,351,739	Credit Suisse International		07/02/19		(1,440	)
USD	89,316	BRL	347,412	Morgan Stanley & Co. International plc		07/02/19		(1,157	)
EUR	3,104,000	USD	3,532,042	UBS AG		07/03/19		(2,184	)
USD	2,329,348	EUR	2,069,000	BNP Paribas SA		07/03/19		(23,512	)
USD	1,198,944	EUR	1,069,000	State Street Bank and Trust Co.		07/03/19		(16,719	)
USD	150,855	TWD	4,720,253	BNP Paribas SA		07/05/19		(1,329	)
USD	60,329	TRY	355,259	Citibank NA		07/08/19		(822	)
USD	70,400	ZAR	1,018,582	BNP Paribas SA		07/08/19		(1,862	)
USD	35,200	ZAR	511,683	Goldman Sachs International		07/08/19		(1,101	)
USD	44,000	TRY	287,144	BNP Paribas SA		07/10/19		(5,371	)
USD	122,000	IDR	1,731,546,000	UBS AG		07/15/19		(439	)
USD	87,000	IDR	1,259,934,000	JPMorgan Chase Bank NA		07/16/19		(2,079	)
USD	87,000	IDR	1,272,375,000	UBS AG		07/16/19		(2,958	)
MXN	2,345,279	USD	122,000	Bank of America NA		07/24/19		(260	)
MXN	6,802,973	USD	353,778	Barclays Bank plc		07/24/19		(645	)
MXN	3,509,153	USD	183,000	Citibank NA		07/24/19		(845	)
MXN	4,542,100	USD	236,000	JPMorgan Chase Bank NA		07/24/19		(226	)
MXN	2,329,151	USD	122,000	Morgan Stanley & Co. International plc		07/24/19		(1,097	)
RUB	7,764,375	USD	123,000	Deutsche Bank AG		07/24/19		(561	)
TRY	1,077,136	USD	184,000	Bank of America NA		07/24/19		(281	)
USD	432,479	IDR	6,203,911,255	Bank of America NA		07/24/19		(5,654	)
USD	421,000	IDR	5,965,275,300	Citibank NA		07/24/19		(280	)
USD	141,000	IDR	2,025,324,000	JPMorgan Chase Bank NA		07/24/19		(2,032	)
USD	121,000	IDR	1,738,528,000	UBS AG		07/24/19		(1,778	)
USD	201,600	MXN	3,884,513	Bank of America NA		07/24/19		(40	)
USD	121,000	MXN	2,332,335	Deutsche Bank AG		07/24/19		(68	)
USD	61,000	TRY	364,332	Citibank NA		07/24/19		(1,141	)
USD	183,000	ZAR	2,595,123	Bank of America NA		07/24/19		(732	)
USD	121,000	ZAR	1,783,295	BNP Paribas SA		07/24/19		(5,255	)
USD	69,000	ZAR	996,146	Goldman Sachs International		07/24/19		(1,526	)
USD	183,000	ZAR	2,597,795	HSBC Bank plc		07/24/19		(921	)
USD	86,000	ZAR	1,252,573	UBS AG		07/24/19		(2,681	)
USD	655,122	IDR	9,632,252,156	Standard Chartered Bank		08/07/19		(23,779	)
USD	597,476	RUB	38,831,654	HSBC Bank plc		08/07/19		(13,678	)
USD	461,107	RUB	30,311,109	Morgan Stanley & Co. International plc		08/07/19		(15,946	)
USD	243,864	IDR	3,550,654,730	Goldman Sachs International		08/08/19		(6,358	)
USD	12,761	IDR	185,425,596	UBS AG		08/08/19		(307	)
USD	651,598	IDR	9,632,252,156	Citibank NA		08/14/19		(26,637	)
USD	90,000	ARS	4,639,500	Bank of America NA		08/21/19		(11,187	)
USD	916,222	ZAR	13,519,042	Bank of America NA		08/21/19		(37,403	)

34 2019 BLACK ROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	727,347	ZAR	10,646,000	BNP Paribas SA		08/21/19	$	(23,615)
ZAR	8,505,304	USD	600,000	Bank of America NA		08/21/19		(41)
ARS	2,873,700	USD	62,000	Citibank NA		09/03/19		(501)
USD	283,118	EUR	249,000	Bank of America NA		09/09/19		(1,614)
JPY	50,646,120	CHF	458,000	Citibank NA		09/18/19		(50)
JPY	100,393,281	CHF	916,000	HSBC Bank plc		09/18/19		(8,487)
JPY	216,266,194	USD	2,019,000	Bank of America NA		09/18/19		(1,364)
JPY	216,149,577	USD	2,019,000	Morgan Stanley & Co. International plc		09/18/19		(2,452)
SEK	7,050,337	NZD	1,145,000	Bank of America NA		09/18/19		(6,816)
SEK	4,225,444	USD	458,000	Bank of America NA		09/18/19		(391)
USD	281,000	CAD	373,729	Bank of America NA		09/18/19		(4,801)
USD	458,000	JPY	49,198,818	JPMorgan Chase Bank NA		09/18/19		(996)
USD	2,019,000	SGD	2,729,627	HSBC Bank plc		09/18/19		(897)
EUR	1,160,000	USD	1,419,283	JPMorgan Chase Bank NA		12/13/19		(83,133)
EUR	1,160,000	USD	1,429,520	JPMorgan Chase Bank NA		02/25/20		(86,423)
								(444,706)
Net Unrealized Appreciation							$	121,345

OTC Barrier Options Purchased

Description

Type of Option

Counterparty

Expiration Date

Exercise Price

Barrier Price/Range

Notional   Amount (000)

Value

Put

USD Currency

Down and Out

BNP Paribas SA

07/01/19

KRW

1,180.00

KRW

1,148.00

USD

299

$

1,330

USD Currency

Down and Out

Deutsche Bank AG

07/11/19

BRL

3.87

BRL

3.74

USD

241

1,197

USD Currency

Up and In

Deutsche Bank AG

08/09/19

CNH

7.10

CNH

7.10

USD

13

806

$

3,333

OTC Currency Options Purchased

Description	Counterparty	Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
USD Currency	Morgan Stanley & Co. International plc		07/01/19	BRL	4.00	USD	196	$	—
USD Currency	Morgan Stanley & Co. International plc		07/05/19	KRW	1,195.00	USD	117		7
USD Currency	BNP Paribas SA		07/11/19	TWD	31.60	USD	294		116
USD Currency	HSBC Bank plc		07/11/19	TWD	31.20	USD	236		452
USD Currency	Deutsche Bank AG		07/12/19	TRY	6.65	USD	145		4
USD Currency	BNP Paribas SA		07/18/19	TWD	31.50	USD	296		279
USD Currency	Bank of America NA		07/19/19	CAD	1.36	USD	245		17
USD Currency	Bank of America NA		07/24/19	TWD	31.10	USD	306		1,208
USD Currency	HSBC Bank plc		07/26/19	CNH	7.03	USD	46,434		71,689
USD Currency	Bank of America NA		07/30/19	CAD	1.33	USD	245		541
USD Currency	JPMorgan Chase Bank NA		07/30/19	TWD	31.10	USD	1,534		6,720
AUD Currency	HSBC Bank plc		07/31/19	USD	0.71	AUD	264		1,132
EUR Currency	Bank of America NA		08/01/19	USD	1.15	EUR	14,821		60,975
									143,140
Put
USD Currency	Bank of America NA		07/02/19	MXN	19.00	USD	183		101
AUD Currency	Bank of America NA		07/03/19	USD	0.68	AUD	251		3
AUD Currency	BNP Paribas SA		07/03/19	USD	0.68	AUD	251		3
USD Currency	JPMorgan Chase Bank NA		07/03/19	PLN	3.75	USD	245		1,591
USD Currency	JPMorgan Chase Bank NA		07/05/19	KRW	1,165.00	USD	235		2,108
USD Currency	JPMorgan Chase Bank NA		07/05/19	KRW	1,150.00	USD	352		792
USD Currency	Morgan Stanley & Co. International plc		07/05/19	KRW	1,140.00	USD	352		221
USD Currency	Deutsche Bank AG		07/09/19	MXN	19.06	USD	246		728
USD Currency	BNP Paribas SA		07/11/19	IDR	14,100.00	USD	353		1,330

SCHEDULE OF INVESTMENTS 35

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

OTC Currency Options Purchased (continued)

Description	Counterparty	Expiration Date		Exercise Price			Notional Amount (000)			Value
USD Currency	Deutsche Bank AG		07/11/19		IDR	14,400.00		USD	235	$	4,526
USD Currency	Deutsche Bank AG		07/11/19		BRL	3.78		USD	241		973
GBP Currency	Barclays Bank plc		07/15/19		USD	1.25		GBP	4,562		3,977
USD Currency	Bank of America NA		07/19/19		BRL	4.02		USD	236		11,408
USD Currency	HSBC Bank plc		08/12/19		KRW	1,125.00		USD	1,055		1,811
USD Currency	Deutsche Bank AG		08/23/19		KRW	1,125.00		USD	245		577
USD Currency	JPMorgan Chase Bank NA		09/03/19		KRW	1,125.00		USD	1,503		4,530
											34,679
										$	177,819

OTC Currency Options Written

Description	Counterparty	Expiration Date			Exercise Price		Notional Amount (000)			Value
Call
USD Currency	Deutsche Bank AG		07/01/19	BRL		4.00		USD	196	$	—
USD Currency	JPMorgan Chase Bank NA		07/05/19	KRW		1,195.00		USD	117		(7)
USD Currency	Deutsche Bank AG		07/11/19	BRL		3.95		USD	241		(500)
USD Currency	HSBC Bank plc		07/11/19	TWD		31.60		USD	294		(115)
USD Currency	Deutsche Bank AG		07/12/19	TRY		7.20		USD	145		—
USD Currency	HSBC Bank plc		07/26/19	CNH		6.96		USD	15,478		(42,575)
USD Currency	Bank of America NA		08/22/19	TWD		31.60		USD	306		(685)
USD Currency	Deutsche Bank AG		08/23/19	KRW		1,195.00		USD	245		(612)
											(44,494)
Put
AUD Currency	Citibank NA		07/03/19	USD		0.68		AUD	502		(6)
USD Currency	JPMorgan Chase Bank NA		07/05/19	KRW		1,140.00		USD	352		(223)
USD Currency	Deutsche Bank AG		07/11/19	IDR		14,100.00		USD	353		(1,328)
GBP Currency	Citibank NA		07/15/19	USD		1.25		GBP	4,562		(3,939)
USD Currency	Bank of America NA		07/19/19	BRL		3.92		USD	355		(9,274)
AUD Currency	HSBC Bank plc		07/31/19	USD		0.69		AUD	264		(414)
											(15,184)
										$	(59,678)

Centrally Cleared Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Termination Date		Notional Amount (000)			Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
CDX.NA.IG.32.V1		1.00	%		Quarterly		06/20/24		USD	15,353	$	(336,270)	$	(317,227)	$	(19,043)

Centrally Cleared Inflation Swaps

Paid by the Fund

Received by the Fund

Reference

Frequency

Rate

Frequency

Termination Date

Notional Amount (000)

Value

Upfront Premium Paid (Received)

Unrealized Appreciation (Depreciation)

2.15%

At Termination

1 month USCPI

At Termination

04/15/29

USD

5,796

$

(121,250)

$

—

$

(121,250)

36 2019 BLACK ROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Effective Date			Termination Date		Notional Amount (000)			Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
28 day MXIBTIIE	Monthly	8.21%	Monthly		N/A			10/07/20		MXN	22,534	$	5,613	$	—	$	5,613
3 month BA	Semi-Annual	1.71%	Semi-Annual		N/A			06/20/21		CAD	20,575		(20,807)		—		(20,807)
6.73%	Quarterly	3 month JIBAR	Quarterly		09/18/19	(a)		09/18/21		ZAR	23,354		(1,403)		—		(1,403)
6.74%	Quarterly	3 month JIBAR	Quarterly		09/18/19	(a)		09/18/21		ZAR	23,354		(1,708)		—		(1,708)
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22		MXN	5,081		1,429		—		1,429
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22		MXN	3,855		1,055		—		1,055
28 day MXIBTIIE	Monthly	8.13%	Monthly		N/A			02/02/24		MXN	7,278		13,123		—		13,123
28 day MXIBTIIE	Monthly	8.14%	Monthly		N/A			02/05/24		MXN	5,230		9,491		—		9,491
28 day MXIBTIIE	Monthly	7.81%	Monthly		N/A			05/27/24		MXN	14,878		17,647		—		17,647
28 day MXIBTIIE	Monthly	6.32%	Monthly		N/A			07/17/25		MXN	1,733		(4,488)		—		(4,488)
3 month LIBOR	Quarterly	2.13%	Semi-Annual		N/A			08/25/25		USD	60		1,449		—		1,449
2.27%	Semi-Annual	3 month LIBOR	Quarterly		N/A			09/11/25		USD	91		(3,002)		—		(3,002)
2.91%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/23/26		USD	125		(9,931)		—		(9,931)
0.14%	Annual	6 month EURIBOR	Semi-Annual		09/10/19	(a)		08/15/28		EUR	3,087		(7,692)		—		(7,692)
0.15%	Annual	6 month EURIBOR	Semi-Annual		09/10/19	(a)		08/15/28		EUR	3,087		(10,631)		—		(10,631)
0.16%	Annual	6 month EURIBOR	Semi-Annual		09/10/19	(a)		08/15/28		EUR	6,090		(25,510)		—		(25,510)
0.20%	Annual	6 month EURIBOR	Semi-Annual		09/10/19	(a)		08/15/28		EUR	6,090		(51,506)		—		(51,506)
3.16%	Semi-Annual	3 month LIBOR	Quarterly		N/A			10/03/28		USD	152		(16,091)		—		(16,091)
												$	(102,962)	$	—	$	(102,962)

^(a)  Forward Swap.

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid   by the Fund			Payment Frequency		Counterparty	Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%		Quarterly	JPMorgan Chase Bank NA		06/20/20		USD	135	$	(880	)	$	238		$	(1,118)
United Mexican States		1.00	%		Quarterly	Bank of America NA		09/20/20		USD	135		(987	)		424			(1,411)
Federative Republic of Brazil		1.00	%		Quarterly	Barclays Bank plc		12/20/23		USD	142		2,118			5,623			(3,505)
Argentine Republic		5.00	%		Quarterly	Barclays Bank plc		06/20/24		USD	42		6,839			5,592			1,247
Argentine Republic		5.00	%		Quarterly	Goldman Sachs International		06/20/24		USD	26		4,233			3,306			927
Argentine Republic		5.00	%		Quarterly	HSBC Bank plc		06/20/24		USD	40		6,514			4,872			1,642
Federative Republic of Brazil		1.00	%		Quarterly	BNP Paribas SA		06/20/24		USD	640		14,613			20,570			(5,957)
Federative Republic of Brazil		1.00	%		Quarterly	BNP Paribas SA		06/20/24		USD	150		3,426			4,821			(1,395)
Federative Republic of Brazil		1.00	%		Quarterly	Citibank NA		06/20/24		USD	2,227		50,860			66,397			(15,537)
Republic of Colombia		1.00	%		Quarterly	Citibank NA		06/20/24		USD	66		(292	)		614			(906)
Republic of the Philippines		1.00	%		Quarterly	Citibank NA		06/20/24		USD	1,046		(26,120	)		(15,792	)		(10,328)
Republic of Turkey		1.00	%		Quarterly	BNP Paribas SA		06/20/24		USD	240		30,360			22,837			7,523
Republic of Turkey		1.00	%		Quarterly	Morgan Stanley & Co. International plc		06/20/24		USD	268		33,953			25,731			8,222
State of Qatar		1.00	%		Quarterly	Morgan Stanley & Co. International plc		06/20/24		USD	172		(3,036	)		(2,502	)		(534)
United Mexican States		1.00	%		Quarterly	Citibank NA		06/20/24		USD	772		3,787			12,916			(9,129)
United Mexican States		1.00	%		Quarterly	Citibank NA		06/20/24		USD	168		823			2,806			(1,983)
United Mexican States		1.00	%		Quarterly	HSBC Bank plc		06/20/24		USD	1,240		6,084			21,431			(15,347)
United Mexican States		1.00	%		Quarterly	HSBC Bank plc		06/20/24		USD	269		1,322			4,655			(3,333)
CMBX.NA.9.AAA		0.50	%		Monthly	Credit Suisse International		09/17/58		USD	150		(1,531	)		1,753			(3,284)
CMBX.NA.9.AAA		0.50	%		Monthly	Deutsche Bank AG		09/17/58		USD	120		(1,225	)		1,419			(2,644)
CMBX.NA.9.AAA		0.50	%		Monthly	Morgan Stanley & Co. International plc		09/17/58		USD	100		(1,021	)		1,169			(2,190)
CMBX.NA.9.AAA		0.50	%		Monthly	Morgan Stanley & Co. International plc		09/17/58		USD	90		(919	)		1,053			(1,972)
CMBX.NA.9.AAA		0.50	%		Monthly	Morgan Stanley & Co. International plc		09/17/58		USD	230		(2,349	)		2,897			(5,246)
CMBX.NA.9.BBB-		3.00	%		Monthly	Morgan Stanley & Co. International plc		09/17/58		USD	8		263			453			(190)
CMBX.NA.6.AAA		0.50	%		Monthly	Deutsche Bank AG		05/11/63		USD	191		(1,656	)		(144	)		(1,512)
CMBX.NA.6.AAA		0.50	%		Monthly	Deutsche Bank AG		05/11/63		USD	81		(704	)		(12	)		(692)

SCHEDULES OF INVESTMENTS 37

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

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)
CMBX.NA.6.BBB-		3.00	%		Monthly	JPMorgan Securities LLC		05/11/63		USD	30	$	3,004	$	2,813	$	191
												$	127,479	$	195,940	$	(68,461	)

OTC Credit Default Swaps — Sell Protection

Reference Obligation/ Index	Financing Rate Received by the Fund		Payment Frequency		Counterparty	Termination Date		Credit Rating (a)			Notional Amount (000) (b)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
United Mexican States		1.00%		Quarterly	Bank of America NA		06/20/20		NR	USD		135	$	880	$	(275)	$	1,155
United Mexican States		1.00%		Quarterly	JPMorgan Chase Bank NA		09/20/20		NR	USD		135		987		(371)		1,358
CMBX.NA.3.AM		0.50%		Monthly	Credit Suisse International		12/13/49		NR	USD		5		(19)		(487)		468
CMBX.NA.4.AM		0.50%		Monthly	Deutsche Bank AG		02/17/51		NR	USD		-0-		—		(3)		3
CMBX.NA.8.A		2.00%		Monthly	Goldman Sachs International		10/17/57		A	USD		60		900		(5,796)		6,696
CMBX.NA.8.A		2.00%		Monthly	Goldman Sachs International		10/17/57		A	USD		18		270		(959)		1,229
CMBX.NA.9.BBB-		3.00%		Monthly	Deutsche Bank AG		09/17/58		BBB-	USD		37		(1,215)		(4,366)		3,151
CMBX.NA.9.BBB-		3.00%		Monthly	JPMorgan Securities LLC		09/17/58		BBB-	USD		32		(1,051)		(2,760)		1,709
CMBX.NA.9.BBB-		3.00%		Monthly	Morgan Stanley & Co. International plc		09/17/58		BBB-	USD		8		(263)		(482)		219
CMBX.NA.10.A		2.00%		Monthly	Deutsche Bank AG		11/17/59		A	USD		120		1,117		(5,076)		6,193
CMBX.NA.10.A		2.00%		Monthly	Deutsche Bank AG		11/17/59		A	USD		60		558		(2,584)		3,142
CMBX.NA.10.BBB-		3.00%		Monthly	JPMorgan Securities LLC		11/17/59		BBB-	USD		10		(318)		(840)		522
CMBX.NA.6.BBB-		3.00%		Monthly	Credit Suisse International		05/11/63		BBB-	USD		30		(3,004)		(2,326)		(678)
													$	(1,158)	$	(26,325)	$	25,167

^(a)  Using S&P Global Rating’s rating of the issuer or the underlying securities of the index, as applicable.

^(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 Interest Rate Swaps

Paid by the Fund		Received by the Fund											Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency	Counterparty	Termination Date			Notional Amount (000)		Value
3.27%	Semi-Annual	3 month LIBOR	Quarterly	Deutsche Bank AG		05/16/21	USD		470	$	(12,964	)	$	—	$	(12,964	)
1 day BZDIOVER	At Termination	8.27%	At Termination	JPMorgan Chase Bank NA		01/02/23	BRL		2,627		44,715			—		44,715
1 day BZDIOVER	At Termination	8.49%	At Termination	Citibank NA		01/02/25	BRL		2,825		68,119			—		68,119
5.73%	Monthly	28 day MXIBTIIE	Monthly	Bank of America NA		01/03/25	MXN		672		2,522			—		2,522
28 day MXIBTIIE	Monthly	6.43%	Monthly	Bank of America NA		06/06/25	MXN		541		(1,245	)		—		(1,245	)
28 day MXIBTIIE	Monthly	6.33%	Monthly	Citibank NA		06/09/25	MXN		271		(687	)		—		(687	)
28 day MXIBTIIE	Monthly	6.33%	Monthly	Citibank NA		07/17/25	MXN		864		(2,225	)		—		(2,225	)

38 2019 BLACK ROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

OTC Interest Rate Swaps (continued)

Paid by the Fund		Received by the Fund							Notional Amount (000)					Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate		Frequency	Counterparty	Termination Date					Value
			28 day
6.31%	Monthly		MXIBTIIE	Monthly	Deutsche Bank AG		08/11/25	MXN		3,395	$	9,058		$	—	$	9,058
28 day MXIBTIIE	Monthly		6.27%	Monthly	Bank of America NA		12/05/25	MXN		122		(356	)		—		(356	)
											$	106,937		$	—	$	106,937

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

Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate	0.25%
1 month USCPI	U.S. Consumer Price Index	1.60%
28 day MXIBTIIE	Mexico Interbank TIIE 28-Day	8.49%
3 month BA	Canadian Bankers Acceptances	1.97%
3 month JIBAR	Johannesburg Interbank Average Rate	7.03%
3 month LIBOR	London Interbank Offered Rate	2.32%
6 month EURIBOR	Euro Interbank Offered Rate	(0.31%)

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

	Swap Premiums Paid		Swap Premiums Received		Unrealized Appreciation		Unrealized Depreciation		Value
Centrally Cleared Swaps(a)	$	—	$	(317,227)	$	49,807	$	(293,062)	$	—
OTC Swaps		214,390		(44,775)		170,011		(106,368)		—
Options Written		N/A		N/A		41,748		(7,693)		(59,678)

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

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	1,101,664	$	—	$	1,101,664
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		566,051		—		—		566,051
Options purchased
Investments at value — unaffiliated(b)		—		—		—		181,152		—		—		181,152
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		—		—		—		49,807		—		49,807
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		259,987		—		—		124,414		—		384,401
	$	—	$	259,987	$	—	$	747,203	$	1,275,885	$	—	$	2,283,075

SCHEDULE OF INVESTMENTS 39

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

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
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		457,932		—		457,932
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		444,706		—		—		444,706
Options written
Options written at value		—		—		—		59,678		—		—		59,678
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		19,043		—		—		152,769		121,250		293,062
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		133,666		—		—		17,477		—		151,143
	$	—	$	152,709	$	—	$	504,384	$	628,178	$	121,250	$	1,406,521

^(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).

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

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	4,556,974	$	—	$	4,556,974
Forward foreign currency exchange contracts		—		—		—		(764,868)		—		—		(764,868)
Options purchased(a)		—		—		—		(298,647)		(120,783)		—		(419,430)
Options written		—		—		—		250,894		6,672		—		257,566
Swaps		—		(207,934)		—		2,915		202,180		(134,829)		(137,668)
	$	—	$	(207,934)	$	—	$	(809,706)	$	4,645,043	$	(134,829)	$	3,492,574
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—		—		(1,241,122)		—		(1,241,122)
Forward foreign currency exchange contracts		—		—		—		341,181		—		—		341,181
Options purchased(b)		—		—		—		(56,504)		(103,963)		—		(160,467)
Options written		—		—		—		37,035		79,693		—		116,728
Swaps		—		(90,279)		—		2,640		7,202		(130,191)		(210,628)
	$	—	$	(90,279)	$	—	$	324,352	$	(1,258,190)	$	(130,191)	$	(1,154,308)

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

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

40 2019 BLACK ROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	192,532,734
Average notional value of contracts — short		66,980,166
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		27,254,021
Average amounts sold — in USD		20,084,696
Options:
Average value of option contracts purchased		163,892
Average value of option contracts written		87,724
Average notional value of swaption contracts purchased		667,500
Average notional value of swaption contracts written		—(a)
Credit default swaps:
Average notional value — buy protection		18,006,816
Average notional value — sell protection		667,249
Interest rate swaps:
Average notional value — pays fixed rate		30,140,096
Average notional value — receives fixed rate		43,962,655
Currency swaps:
Average notional value — pays fixed rate		—(a)
Average notional value — receives fixed rate		—(a)
Inflation swaps:
Average notional value — pays fixed rate		9,226,885
Average notional value — receives fixed rate		13,362,165

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

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets		Liabilities
Derivative Financial Instruments:
Futures contracts	$	19,517	$	57,216
Forward foreign currency exchange contracts		566,051		444,706
Options(a)		181,152		59,678
Swaps — Centrally cleared		—		42,693
Swaps — OTC(b)		384,401		151,143
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	1,151,121	$	755,436
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(19,517)		(99,909)
Total derivative assets and liabilities subject to an MNA	$	1,131,604	$	655,527

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

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

SCHEDULE OF INVESTMENTS 41

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

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	$	111,347	$	(83,830	)	$	—	$	—	$	27,517
Barclays Bank plc		17,557		(4,150	)		—		—		13,407
BNP Paribas SA		74,723		(69,130	)		—		—		5,593
Citibank NA		178,071		(90,808	)		—		—		87,263
Credit Suisse International		8,848		(8,215	)		—		—		633
Deutsche Bank AG		374,106		(33,066	)		—		—		341,040
Goldman Sachs International		15,576		(15,576	)		—		—		—
HSBC Bank plc		190,176		(85,767	)		—		—		104,409
JPMorgan Chase Bank NA		92,215		(92,215	)		—		—		—
JPMorgan Securities LLC		5,235		(3,600	)		—		—		1,635
Morgan Stanley & Co. International plc		48,600		(33,768	)		—		—		14,832
Natwest Markets plc		557		—			—		—		557
Standard Chartered Bank		3,006		(3,006	)		—		—		—
UBS AG		11,587		(10,347	)		—		—		1,240
	$	1,131,604	$	(533,478	)	$	—	$	—	$	598,126
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	$	83,830	$	(83,830	)	$	—	$	—	$	—
Barclays Bank plc		4,150		(4,150	)		—		—		—
BNP Paribas SA		69,130		(69,130	)		—		—		—
Citibank NA		90,808		(90,808	)		—		—		—
Credit Suisse International		8,215		(8,215	)		—		—		—
Deutsche Bank AG		33,066		(33,066	)		—		—		—
Goldman Sachs International		15,740		(15,576	)		—		—		164
HSBC Bank plc		85,767		(85,767	)		—		—		—
JPMorgan Chase Bank NA		176,608		(92,215	)		—		—		84,393
JPMorgan Securities LLC		3,600		(3,600	)		—		—		—
Morgan Stanley & Co. International plc		33,768		(33,768	)		—		—		—
Standard Chartered Bank		23,779		(3,006	)		—		—		20,773
State Street Bank and Trust Co.		16,719		—			—		—		16,719
UBS AG		10,347		(10,347	)		—		—		—
	$	655,527	$	(533,478	)	$	—	$	—	$	122,049

^(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.

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—	$	47,267,020	$	3,649,720	$	50,916,740
Corporate Bonds:
Aerospace & Defense		—		9,234,089		—		9,234,089

42 2019 BLACK ROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

	Level 1		Level 2		Level 3		Total
Air Freight & Logistics	$	—	$	911,404	$	—	$	911,404
Airlines		—		3,163,247		—		3,163,247
Auto Components		—		59,946		—		59,946
Automobiles		—		2,568,918		—		2,568,918
Banks		—		45,584,875		—		45,584,875
Beverages		—		3,317,704		—		3,317,704
Biotechnology		—		3,092,037		—		3,092,037
Building Products		—		347,539		—		347,539
Capital Markets		—		11,513,724		848,338		12,362,062
Chemicals		—		2,865,018		—		2,865,018
Commercial Services & Supplies		—		1,988,943		—		1,988,943
Communications Equipment		—		161,309		—		161,309
Construction Materials		—		23,962		—		23,962
Consumer Finance		—		6,518,080		—		6,518,080
Containers & Packaging		—		210,991		—		210,991
Diversified Consumer Services		—		917,713		—		917,713
Diversified Financial Services		—		1,365,694		—		1,365,694
Diversified Telecommunication Services		—		8,270,898		—		8,270,898
Electric Utilities		—		16,462,303		—		16,462,303
Electronic Equipment, Instruments & Components		—		309,221		—		309,221
Energy Equipment & Services		—		1,439,545		—		1,439,545
Entertainment		—		1,364,683		—		1,364,683
Equity Real Estate Investment Trusts (REITs)		—		913,660		—		913,660
Food & Staples Retailing		—		1,985,443		—		1,985,443
Food Products		—		443,529		—		443,529
Gas Utilities		—		215,349		—		215,349
Health Care Equipment & Supplies		—		2,508,135		—		2,508,135
Health Care Providers & Services		—		7,165,491		—		7,165,491
Hotels, Restaurants & Leisure		—		859,218		—		859,218
Household Products		—		46,071		—		46,071
Independent Power and Renewable Electricity Producers		—		107,961		—		107,961
Industrial Conglomerates		—		741,667		—		741,667
Insurance		—		3,408,973		—		3,408,973
Internet & Direct Marketing Retail		—		532,212		—		532,212
IT Services		—		4,860,681		—		4,860,681
Life Sciences Tools & Services		—		1,095,780		—		1,095,780
Machinery		—		49,929		—		49,929
Media		—		6,161,027		—		6,161,027
Metals & Mining		—		1,124,331		—		1,124,331
Multiline Retail		—		9,579		—		9,579
Multi-Utilities		—		927,267		—		927,267
Oil, Gas & Consumable Fuels		—		18,389,818		—		18,389,818
Paper & Forest Products		—		970,046		—		970,046
Pharmaceuticals		—		6,531,121		—		6,531,121
Road & Rail		—		4,701,764		—		4,701,764
Semiconductors & Semiconductor Equipment		—		6,275,573		—		6,275,573
Software		—		3,535,979		—		3,535,979
Specialty Retail		—		943,374		—		943,374
Technology Hardware, Storage & Peripherals		—		1,692,793		—		1,692,793
Tobacco		—		2,987,968		—		2,987,968
Trading Companies & Distributors		—		58,947		—		58,947
Wireless Telecommunication Services		—		1,678,285		—		1,678,285
Floating Rate Loan Interests:
Banks		—		—		390,694		390,694
Capital Markets		—		—		163,563		163,563
Construction Materials		—		—		133,653		133,653
Gas Utilities		—		129,186		—		129,186
Thrifts & Mortgage Finance		—		—		1,445,373		1,445,373
Foreign Agency Obligations(a)		—		2,844,206		—		2,844,206
Foreign Government Obligations(a)		—		19,927,461		—		19,927,461
Investment Companies		16,500,000		—		—		16,500,000
Municipal Bonds		—		36,426,873		—		36,426,873
Non-Agency Mortgage-Backed Securities		—		26,859,137		1,943,164		28,802,301
Capital Trusts(a)		—		1,451,940		—		1,451,940
U.S. Government Sponsored Agency Securities		—		236,896,260		—		236,896,260
U.S. Treasury Obligations		—		109,174,790		—		109,174,790

SCHEDULE OF INVESTMENTS 43

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Total Return V.I. Fund

	Level 1		Level 2		Level 3		Total
Short-Term Securities:
Borrowed Bond Agreements	$	—	$	944,238	$	—	$	944,238
Foreign Government Obligations(a)		—		804,200		—		804,200
Money Market Funds		11,284,062		—		—		11,284,062
Options Purchased:
Foreign currency exchange contracts		—		181,152		—		181,152
Liabilities:
Investments:
Borrowed Bonds		—		(942,382)		—		(942,382)
TBA Sale Commitments		—		(55,925,467)		—		(55,925,467)
	$	27,784,062	$	628,652,428	$	8,574,505	$	665,010,995
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—	$	45,597	$	—	$	45,597
Foreign currency exchange contracts		—		566,051		—		566,051
Interest rate contracts		1,101,664		174,221		—		1,275,885
Liabilities:
Credit contracts		—		(107,934)		—		(107,934)
Foreign currency exchange contracts		—		(504,384)		—		(504,384)
Interest rate contracts		(457,932)		(170,246)		—		(628,178)
Other contracts		—		(121,250)		—		(121,250)
	$	643,732	$	(117,945)	$	—	$	525,787

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

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

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

	Asset- Backed Securities		Corporate Bonds		Floating Rate Loan Interests		Non-Agency Mortgage- Backed Securities		U.S. Government Sponsored Agency Securities		Total
Investments:
Assets:
Opening balance, as of December 31, 2018	$	1,026,437	$	894,031	$	3,465,229	$	3,137,920	$	81,630	$	8,605,247
Transfers into level 3		2,254,328		—		126,225		—		—		2,380,553
Transfers out of level 3		(20,381)		—		—		(95,873)		(81,630)		(197,884)
Other(a)		733,948		—		—		(733,948)		—		—
Accrued discounts/premiums		3,028		—		58		19,531		—		22,617
Net realized gain		35,133		—		4,589		14,023		—		53,745
Net change in unrealized appreciation (depreciation)(b)(c)		21,360		—		5,777		(29,594)		—		(2,457)
Purchases		338,440		—		177,118		—		—		515,558
Sales		(742,573)		(45,693)		(1,645,713)		(368,895)		—		(2,802,874)
Closing balance, as of June 30, 2019	$	3,649,720	$	848,338	$	2,133,283	$	1,943,164	$	—	$	8,574,505
Net change in unrealized appreciation (depreciation) on investments still held at June 30, 2019(c)	$	19,904	$	—	$	5,775	$	(29,694)	$	—	$	(4,015)

^(a)  Certain Level 3 investments were re-classified between Asset-Backed Securities and Non-Agency Mortgage-Backed Securities.

^(b)  Included in the related net change in unrealized appreciation (depreciation) in the Statement of Operations.

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

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

See notes to financial statements.

44 2019 BLACK ROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Statement of Assets and Liabilities  (unaudited) 

June 30, 2019

	BlackRock  Total Return V.I.  Fund
ASSETS
Investments at value — unaffiliated (cost — $676,830,816)	$	694,235,688
Investments at value — affiliated (cost — $27,643,156)		27,643,156
Cash pledged:
Futures contracts		1,136,050
Centrally cleared swaps		645,090
Foreign currency at value (cost — $2,785,938)		2,824,820
Receivables:
Investments sold		24,370,707
TBA sale commitments		55,759,302
Capital shares sold		61,769
Dividends — affiliated		76,984
Dividends — unaffiliated		8,146
Interest — unaffiliated		4,130,728
Variation margin on futures contracts		19,517
Swap premiums paid		214,390
Unrealized appreciation on:
Forward foreign currency exchange contracts		566,051
OTC swaps		170,011
Prepaid expenses		7,134
Other assets		4,074
Total assets		811,873,617
LIABILITIES
Bank overdraft		111,282
Cash received as collateral for TBA commitments		272,000
Borrowed bonds at value (proceeds $932,646)		942,382
Options written at value (premium received $93,733)		59,678
TBA sale commitments at value (proceeds $55,759,302)		55,925,467
Payables:
Investments purchased		135,385,958
Capital shares redeemed		263,837
Distribution fees		70,294
Income dividend distributions		1,309,214
Interest expense		4,742
Investment advisory fees		207,543
Directors’ and Officer’s fees		5,878
Other affiliates		384
Variation margin on futures contracts		57,216
Variation margin on centrally cleared swaps		42,693
Other accrued expenses		366,113
Swap premiums received		44,775
Unrealized depreciation on:
Forward foreign currency exchange contracts		444,706
OTC swaps		106,368
Total liabilities		195,620,530
NET ASSETS	$	616,253,087
NET ASSETS CONSIST OF
Paid-in capital	$	604,514,819
Accumulated earnings		11,738,268
NET ASSETS	$	616,253,087
NET ASSET VALUE
Class I— Based on net assets of $248,953,340 and 20,546,564 shares outstanding, 600 million shares authorized, $0.10 par value	$	12.12
Class III— Based on net assets of $367,299,747 and 30,676,443 shares outstanding, 100 million shares authorized, $0.10 par value	$	11.97

See notes to financial statements.

FINANCIAL STATEMENTS 45

Statement of Operations  (unaudited) 

Six Months Ended June 30, 2019

	BlackRock Total Return V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	307,035
Dividends — unaffiliated		1,896
Interest — unaffiliated		10,134,809
Foreign taxes withheld		(10,678)
Total investment income		10,433,062
EXPENSES
Investment advisory		1,205,733
Transfer agent — class specific		509,221
Distribution — class specific		410,569
Accounting services		75,563
Professional		51,221
Custodian		28,827
Printing		16,383
Directors and Officer		6,099
Transfer agent		2,480
Registration		162
Miscellaneous		60,771
Total expenses excluding interest expense		2,367,029
Interest expense		51,877
Total expenses		2,418,906
Less:
Fees waived and/or reimbursed by the Manager		(8,848)
Transfer agent fees waived and/or reimbursed — class specific		(410,673)
Total expenses after fees waived and/or reimbursed		1,999,385
Net investment income		8,433,677
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		4,126,543
Borrowed bonds		(162,642)
Forward foreign currency exchange contracts		(764,868)
Foreign currency transactions		235,897
Futures contracts		4,556,974
Options written		257,566
Swaps		(137,668)
		8,111,802
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		21,937,776
Borrowed bonds		36,869
Forward foreign currency exchange contracts		341,181
Foreign currency translations		(51,298)
Futures contracts		(1,241,122)
Options written		116,728
Swaps		(210,628)
		20,929,506
Net realized and unrealized gain		29,041,308
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	37,474,985

See notes to financial statements.

46 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

	BlackRock Total Return V.I. Fund
	Six Months Ended 06/30/19 (unaudited)		Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	8,433,677	$	12,069,063
Net realized gain (loss)		8,111,802		(11,445,812)
Net change in unrealized appreciation (depreciation)		20,929,506		(1,221,799)
Net increase (decrease) in net assets resulting from operations		37,474,985		(598,548)
DISTRIBUTIONS TO SHAREHOLDERS(a)
Class I		(3,844,619)		(4,558,310)
Class III		(4,627,361)		(7,248,839)
Decrease in net assets resulting from distributions to shareholders		(8,471,980)		(11,807,149)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		22,265,194		157,601,267
NET ASSETS
Total increase in net assets		51,268,199		145,195,570
Beginning of period		564,984,888		419,789,318
End of period	$	616,253,087	$	564,984,888

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

See notes to financial statements.

FINANCIAL STATEMENTS 47

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Total Return V.I. Fund
	Class I
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	11.53		$	11.91		$	11.79		$	11.71		$	11.93		$	11.51
Net investment income(a)		0.18			0.33			0.29			0.23			0.22			0.32
Net realized and unrealized gain (loss)		0.59			(0.39	)		0.13			0.09			(0.19	)		0.44
Net increase (decrease) from investment operations		0.77			(0.06	)		0.42			0.32			0.03			0.76
Distributions from net investment income(b)		(0.18	)		(0.32	)		(0.23	)		(0.24	)		(0.25	)		(0.34	)
Net asset value, end of period	$	12.12		$	11.53		$	11.91		$	11.79		$	11.71		$	11.93
Total Return(c)
Based on net asset value		6.75%(d)			(0.46)%			3.60%(e)			2.76%			0.26%			6.66%
Ratios to Average Net Assets(f)
Total expenses		0.73%(g)			0.85%(h)			0.94%			0.82%			0.92%			0.88%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.52%(g)			0.58%(h)			0.74%			0.62%			0.74%			0.69%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.50%(g)			0.55%			0.62%			0.59%			0.69%			0.66%
Net investment income		3.11%(g)			2.84%			2.43%			1.92%			1.89%			2.68%
Supplemental Data
Net assets, end of period (000)	$	248,953		$	246,390		$	152,138		$	157,445		$	154,046		$	130,765
Portfolio turnover rate(i)		303%			488%			627%			590%			900%			772%

^(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 insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)  Aggregate total return.

^(e)  Includes payment received from an affiliate, which impacted the Fund’s total return. Excluding the payment from an affiliate, the Fund’s total return is 3.51%.

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

	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		—	%		0.01	%		0.01	%		—%
(g) Annualized. (h) Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.82% and 0.57%, respectively. (i)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		201	%		310	%		389	%		396	%		625	%		560%

See notes to financial statements.

48 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Total Return V.I. Fund
	Class III
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
					2018			2017			2016			2015			2014
Net asset value, beginning of period	$	11.40			$	11.76		$	11.65		$	11.57		$	11.79		$	11.38
Net investment income(a)		0.16				0.29			0.25			0.19			0.18			0.27
Net realized and unrealized gain (loss)		0.57				(0.37	)		0.12			0.10			(0.19	)		0.44
Net increase (decrease) from investment operations		0.73				(0.08	)		0.37			0.29			(0.01	)		0.71
Distributions from net investment income(b)		(0.16	)			(0.28	)		(0.26	)		(0.21	)		(0.21	)		(0.30	)
Net asset value, end of period	$	11.97			$	11.40		$	11.76		$	11.65		$	11.57		$	11.79
Total Return(c)
Based on net asset value		6.47%(d)				(0.63)%			3.21%(e)			2.46%			(0.08)%			6.28%
Ratios to Average Net Assets(f)
Total expenses		0.93%(g)				1.06%(h)			1.16%			1.01%			1.06%			1.11%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.83%(g)				0.89%(h)			1.06%			0.93%			1.04%			1.01%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.81%(g)				0.86%			0.94%			0.89%			0.98%			0.98%
Net investment income		2.80%(g)				2.54%			2.15%			1.61%			1.54%			2.31%
Supplemental Data
Net assets, end of period (000)	$	367,300			$	318,595		$	267,651		$	175,153		$	68,844		$	7,300
Portfolio turnover rate(i)		303%				488%			627%			590%			900%			772%

^(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 insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d) Aggregate total return.

^(e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return.

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

	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
					2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%			0.01	%		—	%		0.01	%		0.01	%		—%
(g) Annualized. (h) Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 1.03% and 0.88%, respectively. (i)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
					2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		201	%			310	%		389	%		396	%		625	%		560%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 49

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Variable Series Funds II, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation that is comprised of 3 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock Total Return V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have identical voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

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 non-index fixed-income mutual funds and all BlackRock-advised closed-end funds referred to as the BlackRock Fixed-Income Complex.

Prior Year Reorganization: The Board of Trustees of State Farm Variable Product Trust and shareholders of the State Farm Fund approved the reorganization (the “State Farm Reorganization”) of the State Farm Fund (defined below) into the Fund. As a result, the Fund acquired substantially all of the assets and assumed substantially all of the liabilities of the State Farm Fund in exchange for an equal aggregate value of newly-issued Class I Shares of the Fund.

Each shareholder of the State Farm Fund received shares of the Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s State Farm Fund shares, as determined at the close of business on October 26, 2018, less the costs of the State Farm Reorganization.

The State Farm Reorganization was accomplished by a tax-free exchange of shares of the Fund in the following amount and at the following conversion ratio:

State Farm Fund	Shares Prior to Reorganization		Conversion Ratio		Total Return V.I. Fund Share Class		Shares of Total Return V.I. Fund
State Farm Bond Fund, a series of State Farm Variable Product Trust		11,641,553		0.85469550		Class I		9,949,983

The State Farm Fund’s net assets and composition of net assets on October 26, 2018, the valuation date of the State Farm Reorganization were as follows:

State Farm Fund	Net Assets		Paid-In Capital		Accumulated Loss
State Farm Bond Fund, a series of State Farm Variable Product Trust	$	113,486,424	$	116,592,762		$(3,106,338)

For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. However, the cost basis of the investments received from the State Farm Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The net assets of the Fund before the State Farm Reorganization were $440,042,333. The aggregate net assets of the Fund immediately after the acquisition amounted to $553,528,757. The State Farm Fund’s fair value and cost of investments prior to the State Farm Reorganization were as follows:

State Farm Fund	Fair Value of Investments		Cost of Investments
State Farm Bond Fund, a series of State Farm Variable Product Trust	$	102,795,581	$	105,908,727

The purpose of the transaction was to combine the assets of the State Farm Fund with the assets of the Fund. The State Farm Reorganization was a tax-free event and was effective on October 29, 2018.

Assuming the acquisition had been completed on January 1, 2018, the beginning of the fiscal reporting period of the Fund, the pro forma results of operations for the year ended December 31, 2018, are as follows:

• Net investment income: $15,145,680

• Net realized and change in unrealized loss on investments: $(17,219,170)

• Net decrease in net assets resulting from operations: $(2,073,490)

Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Fund that have been included in the Fund’s Statement of Operations since October 29, 2018.

State Farm Reorganization costs incurred by the Fund in connection with the State Farm Reorganization were expensed by the Fund. The Manager reimbursed the Fund $131,200, which is included in fees waived and/or reimbursed by the Manager in the Statement of Operations.

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:

50 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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

Foreign Currency Translation: 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 portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the 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.

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

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

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

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

Recent Accounting Standards: The Fund has adopted Financial Accounting Standards Board Accounting Standards Update 2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Fund has changed the amortization period for the premium on certain purchased callable debt securities with non-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Fund applied the amendments on a modified retrospective basis beginning with the fiscal period ended June 30, 2019. The cost basis of securities at December 31, 2018 has been adjusted to $623,962,504. This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on total accumulated earnings (loss) or the net asset value of the Fund.

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. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the 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.

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) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end).

U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

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

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

NOTESTO FINANCIAL STATEMENTS 51

Notes to Financial Statements  (unaudited) (continued)

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

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

• Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

• Investments in open-end U.S. mutual funds are valued at NAV each business day.

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

• Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

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

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

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

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

52 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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

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

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

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by 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 investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

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

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

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

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

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

NOTESTO FINANCIAL STATEMENTS 53

Notes to Financial Statements  (unaudited) (continued)

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

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

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

Multiple Class Pass-Through Securities: Multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities, may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by a pool of residential or commercial mortgage loans or Mortgage Assets. The payments on these are used to make payments on the CMOs or multiple pass-through securities. Multiple class pass-through securities represent direct ownership interests in the Mortgage Assets. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes.

IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, a fund’s initial investment in the IOs may not fully recoup.

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

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

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

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

Floating Rate Loan Interests: Floating rate loan interests are typically issued to companies (the “borrower”) by banks, other financial institutions, or privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged or in bankruptcy proceedings. In addition, transactions in floating rate loan interests may settle on a delayed basis, which may result in proceeds from the sale not being readily available for a fund to make additional investments or meet its redemption obligations. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. Since the rates reset only periodically, changes

54 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the NAV of a fund to the extent that it invests in floating rate loan interests. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. These investments are treated as investments in debt securities for purposes of a fund’s investment policies.

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

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

Forward Commitments, When-Issued and Delayed Delivery Securities: 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.

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

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

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

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

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

NOTESTO FINANCIAL STATEMENTS 55

Notes to Financial Statements  (unaudited) (continued)

suffers a loss on its investment of the transaction proceeds from a reverse repurchase agreement, a fund would still be required to pay the full repurchase price. Further, a fund remains subject to the risk that the market value of the securities repurchased declines below the repurchase price. In such cases, a fund would be required to return a portion of the cash received from the transaction or provide additional securities to the counterparty.

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

For the six months ended June 30, 2019, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate for the Fund were $138,872 and 2.49%, respectively.

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

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

Counterparty	Borrowed     Bond     Agreements (a)		Borrowed     Bonds     at Value     including     Accrued     Interest(b)		Exposure Due (to) / from Counterparty before Collateral		Non-cash Collateral Received		Cash Collateral Received		Non-cash Collateral Pledged		Cash Collateral Pledged		Net Collateral (Received) / Pledged		Net Exposure     Due     (to) / from     Counterparty  (c)
Bank of America Securities, Inc.	$	853,928	$	(855,611)	$	(1,683)	$	—	$	—	$	—	$	—	$	—	$	(1,683)
Credit Suisse Securities USA LLC		90,310		(91,513)		(1,203)		—		—		—		—		—		(1,203)
	$	944,238	$	(947,124)	$	(2,886)	$	—	$	—	$	—	$	—	$	—	$	(2,886)

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

^(b)  Includes accrued interest on borrowed bonds in the amount of $4,742 which is included in interest expense payable in the Statement of Assets and Liabilities.

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

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

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

5. DERIVATIVE FINANCIAL INSTRUMENTS

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

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

Futures contracts are 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.

56 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is 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, foreign currency exchange rates or underlying assets.

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

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

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

Options: The Fund purchases and writes 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, such option is covered by cash in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statement of Assets and Liabilities.

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

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

• Barrier options — The Fund may purchase and write a variety of options with non-standard payout structures or other features (“barrier options”) that are generally traded OTC.

The Fund may invest in various types of barrier options, including down-and-out options, down-and-in options, double no-touch options, one-touch options, up-and-out options and up-and-in options. Down-and-out options expire worthless to the purchaser if the price of the underlying instrument falls below a specific barrier price level prior to the expiration date. Down-and-in options expire worthless to the purchaser unless the price of the underlying instrument falls below a specific barrier price level prior to the expiration date. Double no-touch options provide the purchaser an agreed-upon payout if the price of the underlying instrument does not reach or surpass predetermined barrier price levels prior to the option’s expiration date. One-touch options provide the purchaser an agreed-upon payout if the price of the underlying instrument reaches or surpasses predetermined barrier price levels prior to the expiration date. Up-and-out options expire worthless to the purchaser if the price of the underlying instrument increases beyond a predetermined barrier price level prior to the expiration date. Up-and-in options can only be exercised when the price of the underlying instrument increases beyond a predetermined barrier price level.

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

NOTESTO FINANCIAL STATEMENTS 57

Notes to Financial Statements  (unaudited) (continued)

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

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

The 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.

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

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

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

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

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

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

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the 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 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. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

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

Cash collateral that has been pledged to cover obligations of the 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

58 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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 its counterparties are not fully collateralized, it 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, it 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 Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee based on a percentage of the aggregate average daily net assets of the Fund and BlackRock High Yield V.I. Fund, a series of the Company, at the following annual rates:

Average Daily Net Assets	Investment Advisory Fees
First $250 Million		0.50%
$250 Million — $500 Million		0.45
$500 Million — $750 Million		0.40
Greater than $750 Million		0.35

For the six months ended June 30, 2019, the aggregate average daily net assets of the Fund and BlackRock High Yield V.I. Fund were approximately $1,072,814,987.

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets attributable to Class III.

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

For the six months ended June 30, 2019, the class specific distribution fees borne directly by Class III were $410,569.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping, sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent — class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

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

Class I	$	251,811
Class III		257,410
	$	509,221

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily 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”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $8,848.

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 April 30, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $2,703 for certain accounting services, which is included in accounting services in the Statement of Operations.

NOTESTO FINANCIAL STATEMENTS 59

Notes to Financial Statements  (unaudited) (continued)

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.00%
Class III	0.06

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2021 unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are shown as transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements are as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$	251,811
Class III		$	158,862
		$	410,673

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

Class I	0.60	%
Class III	1.50

In addition, with respect to Class I shares, the Manager has contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses including interest expense, and excluding dividend expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business to 0.60% of average daily net assets through April 30, 2021.

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2021 unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“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.

During the six months ended June 30, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors 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 directors. For the six months ended June 30, 2019, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:

Purchases	$	484,651
Sales		171,317
Net Realized Gain		6,889

7. PURCHASES AND SALES

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

	Purchases		Sales
Non-U.S. Government Securities		$1,728,756,566		$1,704,787,499
U.S. Government Securities		105,091,050		80,568,739

For the six months ended June 30, 2019, purchases and sales related to mortgage dollar rolls were $600,764,767 and $601,148,994 respectively.

60 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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 each of the four years ended December 31, 2018. 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 June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of December 31, 2018, the Fund had a capital loss carryforward, with no expiration date, available to offset future realized capital gains of $11,325,583.

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

Tax cost	$	704,747,916
Gross unrealized appreciation	$	20,750,154
Gross unrealized depreciation		(3,175,607)
Net unrealized appreciation	$	17,574,547

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 19, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease the Fund’s ability to buy or sell bonds. As a result, the Fund may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If the Fund needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

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. The Fund’s prospectus provides details of the risks to which the Fund is subject.

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.

NOTES TO FINANCIAL STATEMENTS 61 ��

Notes to Financial Statements  (unaudited) (continued)

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. 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.

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

For OTC options purchased, 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.

Concentration Risk: 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 increase as interest rates fall and decrease as interest rates rise. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

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

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19				Year Ended 12/31/18
	Shares		Amount		Shares		Amount
Class I
Shares sold		460,665	$	5,429,113		933,798	$	10,833,853
Shares issued in reinvestment of distributions		326,981		3,837,124		369,629		4,273,362
Shares issued resulting from reorganization		—		—		9,949,983		113,486,424
Shares redeemed		(1,608,207)		(18,969,650)		(2,665,076)		(30,779,754)
Net increase (decrease)		(820,561)	$	(9,703,413)		8,588,334	$	97,813,885
Class III
Shares sold		4,097,324	$	47,789,032		6,390,408	$	73,352,056
Shares issued in reinvestment of distributions		388,579		4,507,711		616,305		7,043,445
Shares redeemed		(1,768,568)		(20,328,136)		(1,797,585)		(20,608,119)
Net increase		2,717,335	$	31,968,607		5,209,128	$	59,787,382
Total Net Increase		1,896,774	$	22,265,194		13,797,462	$	157,601,267

62 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

12. SUBSEQUENT EVENTS

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

NOTESTO FINANCIAL STATEMENTS 63

Glossary of Terms Used in this Report

Currency
ARS	Argentine Peso
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CHF	Swiss Franc
CLP	Chilean Peso
CNH	Chinese Yuan Offshore
COP	Colombian Peso
EGP	Egyptian Pound
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
KRW	South Korean Won
MXN	Mexican Peso
NGN	Nigerian Naira
NZD	New Zealand Dollar
PLN	Polish Zloty
RUB	New Russian Ruble
SEK	Swedish Krona
SGD	Singapore Dollar
TRY	Turkish Lira
TWD	Taiwan New Dollar
USD	United States Dollar
ZAR	South African Rand
Portfolio Abbreviations
ABS	Asset-Backed Security
BA	Canadian Bankers Acceptances
BAN	Bond Anticipation Notes
BZDIOVER	Overnight Brazil CETIP — Interbank Rate
CLO	Collateralized Loan Obligation
COP	Certificates of Participation
CSMC	Credit Suisse Mortgage Capital
CWABS	Countrywide Asset-Backed Certificates
DAC	Designated Activity Company
EURIBOR	Euro Interbank Offered Rate
GO	General Obligation Bonds
JIBAR	Johannesburg Interbank Average Rate
LIBOR	London Interbank Offered Rate
MXIBTIIE	Mexico Interbank TIIE 28-Day
OTC	Over-the-counter
RB	Revenue Bonds
REMIC	Real Estate Mortgage Investment Conduit
S&P	S&P Global Ratings
TBA	To-be-announced
VRDN	Variable Rate Demand Notes
USCPI	U.S. Consumer Price Index

64 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

JUNE 30, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Variable Series Funds II, Inc.

▶ BlackRock U.S. Government Bond V.I. Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee

Fund Summary  as of June 30, 2019 BlackRock U.S. Government Bond V.I. Fund

Investment Objective

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

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended June 30, 2019, the Fund underperformed its benchmark, the Bloomberg Barclays U.S. Government/Mortgage Index, and outperformed its secondary benchmark, the Bloomberg Barclays U.S. Mortgage-Backed Securities Index. The following discussion of relative performance pertains to the Bloomberg Barclays U.S. Government/Mortgage Index.

What factors influenced performance?

Detractors from performance relative to the benchmark included positioning along the U.S. Treasury yield curve. The use of swap and swaption strategies to gain tactical interest rate exposures also detracted. Finally, the Fund’s allocation strategies with respect to30-year agency mortgage-backed securities (“MBS”) constrained Fund returns.

Positive contributors to performance relative to the benchmark included the Fund’s stance with respect to U.S. interest rates. Specifically, an above-benchmark stance with respect to duration (and corresponding interest rate sensitivity) aided Fund returns as Treasury yields declined. Within securitized sectors, an allocation to commercial mortgage-backed securities (“CMBS”) contributed positively, as the segment continued to benefit from favorable fundamentals. In addition, the Fund’s security selection with30-year agency MBS proved beneficial.

Describe recent portfolio activity.

During thesix-month period, the Fund decreased its allocation to U.S. government securities and agency MBS pass-throughs. The Fund modestly increased itsout-of-benchmark exposure, adding to its CMBS position. The Fund shifted from an underweight stance with respect to duration to a duration overweight relative to the benchmark.

The Fund had a modestly elevated cash position at period end due to our increasing preference for using forward contracts to gain MBS exposure as opposed to holding cash bonds. The Fund’s cash position did not have a material impact on Fund performance over the six months.

Describe portfolio positioning at period end.

At period end, the Fund was overweight in agency MBS relative to the benchmark, with exposures continuing to favor higher coupons relative to lower coupons. The Fund continued to hold a core allocation to agency CMBS and collateralized mortgage obligations for carry (incremental income) and to benefit the portfolio’s risk/reward profile. Outside of the United States, the Fund had an allocation to local currency emerging market sovereign debt in Asia, Latin America and Central Europe. The Fund also had exposure to the front end of the Canadian yield curve, in anticipation that the Bank of Canada will continue its dovish messaging in the near term. The Fund is modestly long U.S. duration, with a focus on the front and intermediate part of the yield curve.

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

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
U.S. Government Sponsored Agency Obligations		60	%
U.S. Treasury Obligations		35
Non-Agency Mortgage-Backed Securities		2
Asset-Backed Securities		2
Foreign Government Obligations		1

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

2 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock U.S. Government Bond V.I. Fund

Performance Summary for the Period Ended June 30, 2019

										Average Annual Total Returns(a)
	Standardized 30-Day Yields (b)			Unsubsidized 30-Day Yields (b)			6-Month Total Returns(a)			1 Year			5 Years			10 Years
Class I(c)(d)		2.04	%		1.74	%		4.61	%		5.95	%		2.02	%		2.95	%
Class III(c)(d)		1.73			1.54			4.55			5.63			1.71			2.67	(e)
Bloomberg Barclays U.S. Government/Mortgage Index(f)		—			—			4.75			6.81			2.51			3.09
Bloomberg Barclays U.S. Mortgage-Backed Securities Index(g)		—			—			4.17			6.22			2.56			3.23

^(a) For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)  The standardized30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized30-day yield excludes the effects of any waivers and/or reimbursements.

^(c) Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on theex-dividend/ payable date. Insurance-related fees and expenses are not reflected in these returns.

^(d) The Fund invests, under normal circumstances, at least 80% of its assets in fixed-income securities that are issued or guaranteed by the U.S. Government and its agencies. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock U.S. Government Bond V.I. Fund (the “Predecessor Fund”), a series of BlackRock Variable Series Funds, Inc., through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Fund’s total returns prior to October 1, 2011 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Government Income V.I. Fund”.

^(e) The returns for Class III Shares prior to July 15, 2013, the recommencement of operations of Class III Shares, are based upon the performance of the Fund’s Class I Shares. The returns for Class III Shares, however, are adjusted to reflect the distribution(12b-1) fees applicable to Class III Shares.

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

^(g)  An unmanaged index that includes the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae and Freddie Mac that meet certain maturity and liquidity criteria.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

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

Expense Example

	Actual								Hypothetical(a)
					Including interest expense and Fees		Excluding interest expense and Fees				Including interest expense				Excluding interest expense and Fees
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (b)		Ending Account Value (06/30/19)		Expenses Paid During the Period (c)
Class I	$	1,000.00	$	1,046.10	$	7.61	$	4.21	$	1,000.00	$	1,017.36	$	7.50	$	1,020.68	$	4.16
Class III		1,000.00		1,045.50		9.18		5.78		1,000.00		1,015.82		9.05		1,019.14		5.71

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

^(b) For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.50% for I and 1.81% for III), multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.83% for I and 1.14% for III), multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period shown).

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

FUND SUMMARY 3

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

The Benefits and Risks of Leveraging

The Fund may utilize leverage to seek to enhance returns and net asset value (“NAV”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

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

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

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

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

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

Derivative Financial Instruments

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

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 2.2%(a)
Dryden XXVIII Senior Loan Fund, Series 2013- 28A, Class A1LR, (LIBOR USD 3 Month + 1.20%), 3.72%, 08/15/30(b)	USD		700	$	698,208
LMREC, Inc., Series 2016-CRE2, Class A, (LIBOR USD 1 Month + 1.70%), 4.10%, 11/24/31(b)			58		58,331
Progress Residential Trust, Series 2017-SFR1, Class A, 2.77%, 08/17/34			100		100,312
RomarkWM-R Ltd., Series2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.62%, 04/20/31(b)			500		494,338
Total Asset-Backed Securities — 2.2% (Cost: $1,357,688)					1,351,189
Foreign Government Obligations — 0.8%
France — 0.6%
Republic of France, 1.50%, 05/25/50(a)	EUR		292		382,169
Mexico — 0.1%
United Mexican States, 8.50%, 05/31/29	MXN		11		59,614
Russia — 0.1%
Russian Federation, 8.50%, 09/17/31	RUB		3,318		57,284
Total Foreign Government Obligations — 0.8% (Cost: $478,705)					499,067
Non-Agency Mortgage-Backed Securities — 2.5%
Collateralized Mortgage Obligations — 0.6%
Seasoned Credit Risk Transfer Trust:
Series2018-2, Class MA, 3.50%, 11/25/57	USD		116		120,504
Series2018-3, Class MA, 3.50%, 08/25/57			148		153,526
Series2019-2, Class MA, 3.50%, 08/25/58			84		86,937
					360,967
Commercial Mortgage-Backed Securities — 1.7%
AREIT Trust, Series 2018-CRE1, Class A, 3.25%, 02/14/35(a)(c)(d)			34		33,737
Commercial Mortgage Trust, Series 2017- PANW, Class A, 3.24%, 10/10/29(a)			440		455,011
CSAIL Commercial Mortgage Trust, Series2019-C16, Class XA, 1.57%, 06/15/52(c)			1,745		218,675
Hudson Yards Mortgage Trust, Series 2019- 30HY, Class D, 1.00%, 07/10/39(a)(c)			101		101,929
JPMCC Commercial Mortgage Securities Trust, Series 2019-COR5, Class A4, 3.39%, 06/13/52			80		83,789
Morgan Stanley Capital I Trust, Series2019-H6, Class A4, 3.42%, 06/15/52			131		137,191
RAIT Trust, Series2017-FL7, Class A, 3.34%, 06/15/37(a)(c)			45		44,662
					1,074,994
Interest Only Commercial Mortgage-Backed Securities — 0.2%
Core Industrial Trust(a)(c):
Series 2015-TEXW, Class XA, 0.90%, 02/10/34			3,275		55,322
Series 2015-WEST, Class XA, 1.08%, 02/10/37			1,570		74,434
					129,756
TotalNon-Agency Mortgage-Backed Securities — 2.5% (Cost: $1,556,148)				1,565,717

Security		Par (000)		Value
U.S. Government Sponsored Agency Securities — 68.0%
Agency Obligations — 0.9%
Federal Home Loan Bank, 4.00%, 04/10/28	USD		500	$	563,198
Collateralized Mortgage Obligations — 0.7%
Federal National Mortgage Association, Series2011-8, Class ZA, 4.00%, 02/25/41			239		252,108
Government National Mortgage Association Variable Rate Notes, Series2014-107, Class WX, 6.81%, 07/20/39(e)			147		169,067
					421,175
Commercial Mortgage-Backed Securities — 3.3%
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates:
Series K079, Class A2, 3.93%, 06/25/28			245		272,468
Series K087, Class A2, 3.77%, 12/25/28			171		188,681
Series K091, Class A2, 3.51%, 03/25/29			535		579,956
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes(e):
Series K082, Class A2, 3.92%, 09/25/28			45		50,130
Series K086, Class A2, 3.86%, 11/25/28			320		355,332
Federal Home Loan Mortgage Corp. Variable Rate Notes(e):
Series 2019-SB60, Class A10F, 3.31%, 01/25/29			222		230,250
Series 2019-SB61, Class A10F, 3.17%, 01/25/29			185		191,100
Federal National Mortgage Association ACES Variable Rate Notes, Series2019-M1, Class A2, 3.67%, 09/25/28(e)			118		127,851
Government National Mortgage Association:
Series2019-7, Class V, 3.00%, 05/16/35			23		23,123
Series2019-53, Class V, 2.75%, 08/16/31			57		58,056
					2,076,947
Interest Only Commercial Mortgage-Backed Securities — 2.2%
Federal Home Loan Mortgage Corp. Variable Rate Notes, Series 2015-K718, Class X2A, 0.10%, 02/25/48(a)(e)			21,790		43,073
Federal National Mortgage Association ACES Variable Rate Notes, Series2015-M1, Class X2, 0.65%, 09/25/24(e)			4,940		115,766
Government National Mortgage Association Variable Rate Notes:
Series2002-83, 0.00%, 10/16/42(e)			911		1
Series2003-17, 0.00%, 03/16/43(e)			2,095		—
Series2003-109, 0.00%, 11/16/43(e)			1,723		327
Series2016-22, 0.77%, 11/16/55(e)			2,563		137,059
Series2016-45, 1.01%, 02/16/58(e)			1,998		144,167
Series2016-92, 1.01%, 04/16/58(e)			696		50,912
Series2016-113, (LIBOR USD 1 Month + 0.00%), 1.18%, 02/16/58(b)			1,513		139,840
Series2016-119, (LIBOR USD 1 Month + 0.00%), 1.12%, 04/16/58(b)			3,679		286,229
Series2016-151, 1.09%, 06/16/58(e)			981		77,576
Series2017-30, 0.74%, 08/16/58(e)			735		45,852
Series2017-44, 0.70%, 04/17/51(e)			748		43,643
Series2017-53, 0.69%, 11/16/56(e)			2,020		116,667
Series2017-61, 0.77%, 05/16/59(e)			507		35,808
Series2017-64, 0.72%, 11/16/57(e)			848		55,765
Series2017-72, 0.68%, 04/16/57(e)			1,322		81,710
					1,374,395

SCHEDULE OF INVESTMENTS 5

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Mortgage-Backed Securities — 60.9%
Federal Home Loan Mortgage Corp.:
2.50%, 03/01/30 - 04/01/31	USD		227	$	229,123
3.00%, 09/01/27 - 12/01/46			543		553,854
3.50%, 04/01/31 - 01/01/48			2,323		2,419,989
4.00%, 08/01/40 - 08/01/47			498		527,484
4.50%, 02/01/39 - 07/01/47			273		292,839
5.00%, 10/01/41 - 11/01/41			179		192,967
5.50%, 06/01/41			117		128,844
8.00%, 12/01/29 - 07/01/30			28		32,615
Federal National Mortgage Association:
3.00%, 02/01/44			73		73,884
3.13%, 09/01/27			123		129,228
3.16%, 03/01/27			188		197,154
3.50%, 11/01/46			210		217,111
4.00%, 01/01/41			12		12,242
Government National Mortgage Association:
3.00%, 02/15/45 - 12/20/46			1,684		1,724,467
3.00%, 07/15/49(f)			329		336,210
3.50%, 01/15/42 - 10/20/46			2,985		3,090,767
3.50%, 07/15/49(f)			212		218,998
4.00%, 09/20/40 - 01/15/48			310		328,001
4.00%, 07/15/49(f)			1,301		1,348,151
4.50%, 12/20/39 - 07/20/48			1,295		1,385,170
4.50%, 07/15/49(f)			97		101,106
5.00%, 12/15/38 - 07/20/42			109		119,371
5.00%, 07/15/49(f)			207		216,384
5.50%, 01/15/34			583		657,252
Uniform Mortgage-Backed Securities:
2.00%, 10/01/31 - 03/01/32			131		129,772
2.50%, 04/01/30 - 02/01/33			747		752,638
2.50%, 07/25/34(f)			53		53,372
3.00%, 04/01/29 - 03/01/47			3,866		3,943,345
3.00%, 07/25/34 - 07/25/49(f)			1,112		1,124,172
3.50%, 04/01/29 - 01/01/48			3,350		3,488,215
3.50%, 07/25/34 - 07/25/49(f)			2,655		2,715,223
4.00%, 01/01/26 - 04/01/48			3,145		3,329,871
4.00%, 07/25/49(f)			532		549,841
4.50%, 05/01/24 - 05/01/48			1,069		1,146,350
4.50%, 07/25/49 - 08/25/49(f)			2,749		2,872,090
5.00%, 09/01/35 - 08/01/41			238		259,495
5.00%, 07/25/49 - 08/25/49(f)			2,543		2,687,820
5.50%, 05/01/34 - 12/01/39			239		262,333
6.00%, 04/01/35 - 06/01/41			268		304,001
6.50%, 05/01/40			48		55,818
					38,207,567
Total U.S. Government Sponsored Agency Securities — 68.0% (Cost: $42,068,782)					42,643,282
U.S. Treasury Obligations — 40.3%
U.S. Treasury Bonds:
4.25%, 05/15/39			170		222,394
4.50%, 08/15/39			170		229,633
4.38%, 11/15/39			170		226,034
3.13%, 02/15/43			660		735,951
2.88%, 05/15/43 - 11/15/46			1,290		1,380,114
3.63%, 08/15/43			660		796,666
3.75%, 11/15/43			660		812,470
3.00%, 02/15/48 - 02/15/49			1,450		1,590,761
U.S. Treasury Inflation Linked Notes, 0.50%, 04/15/24(g)			2,553		2,585,243
U.S. Treasury Notes:
2.00%, 07/31/20(g)			2,520		2,521,673
2.25%, 03/31/21 - 08/15/27			1,880		1,915,385
2.13%, 12/31/22 - 05/15/25			5,180		5,263,325

Security		Par (000)		Value
U.S. Treasury Obligations (continued)
2.75%, 05/31/23	USD		1,260	$	1,308,185
2.00%, 05/31/24 - 02/15/25			2,840		2,870,862
1.50%, 08/15/26			1,830		1,783,464
2.88%, 08/15/28			380		408,352
3.13%, 11/15/28			380		416,798
2.63%, 02/15/29			215		226,724
Total U.S. Treasury Obligations — 40.3% (Cost: $24,435,566)					25,294,034
Total Long-Term Investments — 113.8% (Cost: $69,896,889)					71,353,289
Short-Term Securities — 11.3%
Commercial Paper — 0.8%
Macquarie Bank Ltd., 3.27%, 10/11/19(h)			500		496,675
Total Commercial Paper — 0.8% (Cost: $495,495)					496,675
		Shares
Money Market Funds — 1.8%
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.26%(i)*			1,102,876		1,102,876
Total Money Market Funds — 1.8% (Cost: $1,102,876)					1,102,876
		Par (000)
U.S. Government Sponsored Agency Securities — 8.7%
Federal Home Loan Bank Discount Notes, 2.20%, 07/26/19(h)			5,500		5,491,597
Total U.S. Government Sponsored Agency Securities — 8.7% (Cost: $5,491,616)					5,491,597
Total Short-Term Securities — 11.3% (Cost: $7,089,987)					7,091,148
Total Options Purchased — 0.0% (Cost: $44,945)					13,970
Total Investments Before Options Written and TBA Sale Commitments — 125.1% (Cost: $77,031,821)					78,458,407
Total Options Written — (0.1)% (Premium Received — $57,402)					(81,883	)
TBA Sale Commitments — (19.1)%(f)
Mortgage-Backed Securities — (19.1)%
Government National Mortgage Association:
3.00%, 07/15/49			550		(562,053	)
3.50%, 07/15/49			746		(770,379	)
Uniform Mortgage-Backed Securities:
2.50%, 07/25/34			186		(187,002	)
3.50%, 07/25/34 - 08/25/49			5,616		(5,741,599	)
4.00%, 07/25/34			177		(183,741	)
3.00%, 07/25/49			1,291		(1,302,362	)
4.50%, 07/25/49			1,146		(1,197,514	)
5.00%, 07/25/49			1,666		(1,761,047	)
5.50%, 07/25/49			88		(93,860	)

6 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund (Percentages shown are based on Net Assets)

Security	Par (000)		Value
TBA Sale Commitments (continued)
6.00%, 07/25/49		USD        160	$	(175,200	)
Total TBA Sale Commitments — (19.1)% (Proceeds: $11,938,809)				(11,974,757	)
Total Investments Net of Options Written and TBA Sale Commitments — 105.9% (Cost: $65,035,610)				66,401,767
Liabilities in Excess of Other Assets — (5.9)%				(3,708,247	)
Net Assets — 100.0%			$	62,693,520

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

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

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

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

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

^(f)  Represents or includes a TBA transaction.

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

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

⁽ⁱ⁾  Annualized7-day yield as of period end.

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

Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 06/30/19		Value at 06/30/19		Income		Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		2,138,766		(1,035,890	)		1,102,876	$	1,102,876	$	16,363	$	—	$	—

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

Reverse Repurchase Agreements

Counterparty	Interest Rate			Trade Date		Maturity Date		Face Value		Face Value Including Accrued Interest		Type of Non-Cash Underlying Collateral	Remaining Contractual Maturity of the Agreements
Amherst Pierpont Securities LLC		2.70	%		06/28/19		07/01/19	$	2,586,150	$	2,586,732	U.S. Treasury Obligations	Overnight
Bank of America Securities, Inc.		2.75			06/28/19		07/01/19		2,542,050		2,542,633	U.S. Treasury Obligations	Overnight
Bank of America Securities, Inc.		2.75			06/28/19		07/01/19		2,409,000		2,409,552	U.S. Treasury Obligations	Overnight
Bank of America Securities, Inc.		2.75			06/28/19		07/01/19		1,021,250		1,021,484	U.S. Treasury Obligations	Overnight
								$	8,558,450	$	8,560,401

SCHEDULE OF INVESTMENTS 7

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro-Bund		10		09/06/19	$	1,964	$	6,209
Euro-Buxl		1		09/06/19		231		5,772
U.S. Treasury 10 Year Note		11		09/19/19		1,408		3,320
U.S. Treasury 10 Year Ultra Note		2		09/19/19		276		2,387
U.S. Treasury Long Bond		3		09/19/19		467		965
U.S. Treasury Ultra Bond		2		09/19/19		355		935
U.S. Treasury 2 Year Note		78		09/30/19		16,784		10,315
U.S. Treasury 5 Year Note		22		09/30/19		2,599		10,989
							$	40,892

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
BRL	77,554	USD	20,000	Goldman Sachs International		07/02/19	$	197
ZAR	78,293	USD	5,400	Citibank NA		07/08/19		154
TRY	12,713	USD	2,000	UBS AG		07/10/19		186
IDR	128,700,000	USD	9,000	BNP Paribas SA		07/16/19		99
COP	19,698,000	USD	6,000	UBS AG		07/17/19		123
USD	6,000	COP	19,212,000	Natwest Markets plc		07/17/19		28
CLP	4,185,000	USD	6,000	Morgan Stanley & Co. International plc		07/24/19		178
IDR	306,708,668	USD	21,646	Citibank NA		07/24/19		14
KRW	11,580,100	USD	10,000	Citibank NA		07/24/19		11
KRW	23,173,591	USD	20,000	Goldman Sachs International		07/24/19		33
KRW	23,170,838	USD	20,000	UBS AG		07/24/19		31
PLN	37,335	USD	10,000	Citibank NA		07/24/19		6
PLN	37,970	USD	10,000	Deutsche Bank AG		07/24/19		176
PLN	37,683	USD	10,000	Goldman Sachs International		07/24/19		99
USD	6,000	CLP	4,063,200	Credit Suisse International		07/24/19		3
USD	10,000	KRW	11,534,585	BNP Paribas SA		07/24/19		29
USD	10,000	KRW	11,532,569	UBS AG		07/24/19		30
USD	21,310	MXN	410,155	BNP Paribas SA		07/24/19		19
USD	10,000	PLN	37,298	State Street Bank and Trust Co.		07/24/19		4
USD	10,000	RUB	631,332	Goldman Sachs International		07/24/19		44
ZAR	287,553	USD	20,000	Citibank NA		07/24/19		358
BRL	154,416	USD	40,000	Credit Suisse International		08/02/19		95
USD	348,020	EUR	305,000	UBS AG		08/06/19		175
BRL	360,886	USD	93,000	Morgan Stanley & Co. International plc		09/18/19		268
CAD	8,038	USD	6,000	BNP Paribas SA		09/18/19		147
IDR	1,287,661,617	USD	88,965	Citibank NA		09/18/19		1,269
RUB	5,848,474	USD	89,176	Standard Chartered Bank		09/18/19		2,298
USD	205,000	TWD	6,322,200	Bank of America NA		09/18/19		98
ZAR	1,336,548	USD	89,176	UBS AG		09/18/19		4,774
								10,946
BRL	38,250	USD	10,000	Morgan Stanley & Co. International plc		07/02/19		(39	)
BRL	38,239	USD	10,000	Natwest Markets plc		07/02/19		(42	)
USD	40,000	BRL	153,960	Credit Suisse International		07/02/19		(95	)
EUR	305,000	USD	347,059	UBS AG		07/03/19		(215	)
USD	348,289	EUR	309,000	State Street Bank and Trust Co.		07/03/19		(3,106	)
USD	3,350	ZAR	48,469	BNP Paribas SA		07/08/19		(89	)
USD	2,050	ZAR	29,800	Goldman Sachs International		07/08/19		(64	)
USD	2,000	TRY	13,052	BNP Paribas SA		07/10/19		(244	)
USD	4,500	IDR	65,169,000	JPMorgan Chase Bank NA		07/16/19		(107	)
USD	4,500	IDR	65,812,500	UBS AG		07/16/19		(153	)
MXN	602,076	USD	31,310	Barclays Bank plc		07/24/19		(57	)

8 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
MXN	385,063	USD	20,000	State Street Bank and Trust Co.		07/24/19	$	(12	)
MXN	190,846	USD	10,000	UBS AG		07/24/19		(93	)
RUB	631,250	USD	10,000	Deutsche Bank AG		07/24/19		(46	)
TRY	58,592	USD	10,000	HSBC Bank plc		07/24/19		(6	)
USD	21,646	IDR	310,511,870	Bank of America NA		07/24/19		(283	)
USD	4,000	MXN	77,086	Bank of America NA		07/24/19		(1	)
USD	6,000	MXN	115,653	Deutsche Bank AG		07/24/19		(3	)
USD	10,000	ZAR	141,810	Bank of America NA		07/24/19		(40	)
USD	10,000	ZAR	141,956	HSBC Bank plc		07/24/19		(50	)
USD	10,467	RUB	683,300	BNP Paribas SA		08/07/19		(287	)
USD	18,918	RUB	1,226,982	Goldman Sachs International		08/07/19		(392	)
USD	22,750	RUB	1,495,516	Morgan Stanley & Co. International plc		08/07/19		(788	)
JPY	21,958,677	USD	205,000	Bank of America NA		09/18/19		(138	)
JPY	21,946,836	USD	205,000	Morgan Stanley & Co. International plc		09/18/19		(249	)
USD	6,000	CAD	7,951	Bank of America NA		09/18/19		(80	)
USD	210,000	SGD	283,950	BNP Paribas SA		09/18/19		(120	)
								(6,799	)
Net Unrealized Appreciation							$	4,147

OTC Currency Options Purchased

Description	Counterparty	Expiration Date		Exercise Price			Notional Amount (000)			Value
Call
USD Currency	HSBC Bank plc		07/26/19		CNH	7.03		USD	1,734	$	2,677
EUR Currency	Bank of America NA		08/01/19		USD	1.15		EUR	1,507		6,198
										$	8,875

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Put

5-Year Interest Rate Swap

2.13

%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

11/25/19

2.13

%

USD

1,900

$

4,059

5-Year Interest Rate Swap

2.72

%

Semi-Annual

3 month LIBOR

Quarterly

Barclays Bank plc

02/03/20

2.72

%

USD

700

286

10-Year Interest Rate Swap

3.20

%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

850

375

10-Year Interest Rate Swap

3.20

%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

850

375

$

5,095

Exchange-Traded Options Written

Description	Number of Contracts	Expiration Date		Exercise Price			Notional Amount (000)			Value
Call
90-day Eurodollar December 2019 Futures	14		12/16/19		USD	98.25		USD	3,500	$	(3,675	)
90-day Eurodollar March 2020 Futures	24		03/16/20		USD	98.00		USD	6,000		(23,250	)
										$	(26,925	)

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund

OTC Interest Rate Swaptions Written

Description	Paid by the Fund			Received by the Fund			Counterparty	Expiration Date		Exercise Rate			Notional Amount (000)			Value
	Rate		Frequency	Rate		Frequency
Call
10-Year Interest Rate Swap		3 month LIBOR	Quarterly		2.03%	Semi-Annual	Bank of America NA		09/03/19		2.03	%		USD	520	$	(7,431	)
10-Year Interest Rate Swap		3 month LIBOR	Quarterly		2.01%	Semi-Annual	Bank of America NA		09/04/19		2.01	%		USD	520		(6,914	)
2-Year Interest Rate Swap		3 month LIBOR	Quarterly		1.89%	Semi-Annual	Citibank NA		05/01/20		1.89	%		USD	4,300		(35,530	)
																	(49,875	)
Put
10-Year Interest Rate Swap		2.23%	Semi-Annual		3 month LIBOR	Quarterly	Bank of America NA		09/03/19		2.23	%		USD	520		(1,095	)
10-Year Interest Rate Swap		2.21%	Semi-Annual		3 month LIBOR	Quarterly	Bank of America NA		09/04/19		2.21	%		USD	520		(1,270	)
5-Year Interest Rate Swap		2.33%	Semi-Annual		3 month LIBOR	Quarterly	Bank of America NA		11/25/19		2.33	%		USD	2,960		(2,718	)
																	(5,083	)
																$	(54,958	)

Centrally Cleared Inflation Swaps

Paid by the Fund		Received by the Fund
Reference	Frequency	Rate	Frequency	Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
3.41%	At Termination	UK Retail Price Index All Items Monthly	At Termination		03/15/24		GBP	642	$	8,774		$	—		$	8,774
3.44%	At Termination	UK Retail Price Index All Items Monthly	At Termination		03/15/24		GBP	195		2,219			261			1,958
UK Retail Price Index All Items Monthly	At Termination	3.41%	At Termination		03/15/24		GBP	642		(8,774	)		(980	)		(7,794	)
UK Retail Price Index All Items Monthly	At Termination	3.44%	At Termination		03/15/24		GBP	195		(2,219	)		—			(2,219	)
3.55%	At Termination	UK Retail Price Index All Items Monthly	At Termination		04/15/24		GBP	195		796			(1,117	)		1,913
UK Retail Price Index All Items Monthly	At Termination	3.55%	At Termination		04/15/24		GBP	195		(796	)		—			(796	)
3.49%	At Termination	UK Retail Price Index All Items Monthly	At Termination		03/15/29		GBP	642		11,829			6,370			5,459
UK Retail Price Index All Items Monthly	At Termination	3.49%	At Termination		03/15/29		GBP	642		(11,829	)		—			(11,829	)
2.15%	At Termination	1 month USCPI	At Termination		04/15/29		USD	587		(12,280	)		—			(12,280	)
1.84%	At Termination	1 month USCPI	At Termination		06/20/29		USD	81		549			—			549
									$	(11,731	)	$	4,534		$	(16,265	)

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund		Effective Date			Termination Date				Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency						Notional Amount (000)
28 day MXIBTIIE	Monthly	8.21%	Monthly		N/A			10/07/20	MXN	1,486	$	369		$	—	$	369
3 month LIBOR	Quarterly	1.37%	Semi-Annual		N/A			11/30/20	USD	1,350		(11,509	)		9,620		(21,129	)
1.37%	Semi-Annual	3 month LIBOR	Quarterly		N/A			11/30/20	USD	2,470		21,057			—		21,057
3 month LIBOR	Quarterly	2.38%	Semi-Annual		N/A			05/03/21	USD	1,460		14,144			—		14,144
3 month BA	Semi-Annual	1.71%	Semi-Annual		N/A			06/20/21	CAD	2,100		(2,124	)		—		(2,124	)
6.73%	Quarterly	3 month JIBAR	Quarterly		09/18/19	(a)		09/18/21	ZAR	1,142		(69	)		—		(69	)
6.74%	Quarterly	3 month JIBAR	Quarterly		09/18/19	(a)		09/18/21	ZAR	1,142		(84	)		—		(84	)
7.11%	Monthly	28 day MXIBTIIE Monthly			N/A			10/14/22	MXN	424		119			—		119

10 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund

Centrally Cleared Interest Rate Swaps (continued)

Paid by the Fund		Received by the Fund		Effective Date			Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22	MXN	321	$	88 $			—	$	88
2.50%	Semi-Annual	3 month LIBOR	Quarterly		N/A			01/29/23	USD	1,035		(33,934	)		—		(33,934	)
28 day MXIBTIIE	Monthly	8.13%	Monthly		N/A			02/02/24	MXN	380		685			—		685
28 day MXIBTIIE	Monthly	8.14%	Monthly		N/A			02/05/24	MXN	273		495			—		495
3 month LIBOR	Quarterly	2.61%	Semi-Annual		N/A			02/07/24	USD	700		31,258			—		31,258
2.71%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/18/24	USD	1,700		(85,536	)		—		(85,536	)
28 day MXIBTIIE	Monthly	7.81%	Monthly		N/A			05/27/24	MXN	722		857			—		857
3 month LIBOR	Quarterly	2.13%	Semi-Annual		N/A			08/25/25	USD	15		362			—		362
3.04%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/31/25	USD	1,700		(137,028	)		—		(137,028	)
3.07%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/31/25	USD	4,230		(349,121	)		—		(349,121	)
0.16%	Annual	6 month EURIBOR	Semi-Annual		09/10/19	(a)		08/15/28	EUR	530		(2,220	)		—		(2,220	)
0.20%	Annual	6 month EURIBOR	Semi-Annual		09/10/19	(a)		08/15/28	EUR	530		(4,482	)		—		(4,482	)
0.15%	Annual	6 month EURIBOR	Semi-Annual		09/10/19	(a)		08/15/28	EUR	315		(1,085	)		—		(1,085	)
0.14%	Annual	6 month EURIBOR	Semi-Annual		09/10/19	(a)		08/15/28		315		(785	)		—		(785	)
2.85%	Semi-Annual	3 month LIBOR	Quarterly		N/A			12/21/28	USD	300		(23,723	)		—		(23,723	)
											$	(582,266	)	$	9,620	$	(591,886	)

^(a)  Forward Swap.

OTC Interest Rate Swaps

Paid by the Fund		Received by the Fund		Counterparty		Termination Date				Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency					Notional Amount (000)
1 day BZDIOVER	At Termination	8.27%	At Termination		JPMorgan Chase Bank NA		01/02/23	BRL	134	$	2,283		$	—	$	2,283
1 day BZDIOVER	At Termination	8.49%	At Termination		Citibank NA		01/02/25	BRL	299		7,222			—		7,222
28 day MXIBTIIE	Monthly	6.32%	Monthly		Goldman Sachs International		08/06/25	MXN	640		(1,689	)		—		(1,689	)
6.31%	Monthly	28 day MXIBTIIE	Monthly		Deutsche Bank AG		08/11/25	MXN	810		2,162			—		2,162
										$	9,978		$	—	$	9,978

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

Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate	0.25%
1 monthUSCPI	U.S. Consumer Price Index	1.60%
28 day MXIBTIIE	Mexico Interbank TIIE28-Day	8.49%
3 month BA	Canadian Bankers Acceptances	1.97%
3 month JIBAR	Johannesburg Interbank Average Rate	7.03%
3 month LIBOR	London Interbank Offered Rate	2.32%
6 month EURIBOR	Euro Interbank Offered Rate	(0.31%)

SCHEDULE OF INVESTMENTS 11

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund

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

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation			Value
Centrally Cleared Swaps(a)	$	16,251	$	(2,097	)	$	88,087	$	(696,238	)	$	—
OTC Swaps		—		—			11,667		(1,689	)		—
Options Written		N/A		N/A			19,763		(44,244	)		(81,883	)

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

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the 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)	$	—	$	—	$	—	$	—	$	40,892	$	—	$	40,892
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		10,946		—		—		10,946
Options purchased
Investments at value — unaffiliated (b)		—		—		—		8,875		5,095		—		13,970
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps (a)		—		—		—		—		69,434		18,653		88,087
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		—		—		—		11,667		—		11,667
	$	—	$	—	$	—	$	19,821	$	127,088	$	18,653	$	165,562
Liabilities — Derivative Financial Instruments
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		6,799		—		—		6,799
Options written
Options written at value		—		—		—		—		81,883		—		81,883
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps (a)		—		—		—		—		661,320		34,918		696,238
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		—		—		—		1,689		—		1,689
	$	—	$	—	$	—	$	6,799	$	744,892	$	34,918	$	786,609

^(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).

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

12 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund

For the six months ended June 30, 2019, the effect of derivative financial instruments in the Statement of Operations were as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—		$	250,339		$	—		$	250,339
Forward foreign currency exchange contracts		—		—			—		(24,279	)		—			—			(24,279)
Options purchased (a)		—		—			—		(323	)		18,725			—			18,402
Options written		—		—			—		33			7,744			—			7,777
Swaps		—		(4,919	)		—		—			(23,782	)		(9,700	)		(38,401)
	$	—	$	(4,919	)	$	—	$	(24,569	)	$	253,026		$	(9,700	)	$	213,838
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			—		—			(56,809	)		—			(56,809)
Forward foreign currency exchange contracts		—		—			—		2,595			—			—			2,595
Options purchased (b)		—		—			—		(130	)		(77,313	)		—			(77,443)
Options written		—		—			—		—			58,738			—			58,738
Swaps		—		(3,013	)		—		—			(401,649	)		(17,155	)		(421,817)
	$	—	$	(3,013	)	$	—	$	2,465		$	(477,033	)	$	(17,155	)	$	(494,736)

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

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

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	25,563,559
Average notional value of contracts — short		4,885,819
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		853,765
Average amounts sold — in USD		1,307,714
Options:
Average value of option contracts purchased		5,475
Average value of option contracts written		16,763
Average notional value of swaption contracts purchased		3,455,000
Average notional value of swaption contracts written		8,110,000
Credit default swaps:
Average notional value — buy protection		125,191
Interest rate swaps:
Average notional value — pays fixed rate		17,238,996
Average notional value — receives fixed rate		8,883,570
Inflation swaps:
Average notional value — pays fixed rate		2,004,850
Average notional value — receives fixed rate		2,465,839

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	1,427		$	2,084
Forward foreign currency exchange contracts		10,946			6,799
Options (a)		13,970			81,883
Swaps — Centrally cleared		993			—
Swaps — OTC (b)		11,667			1,689
Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	39,003		$	92,455
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(2,420	)		(29,009	)
Total derivative assets and liabilities subject to an MNA	$	36,583		$	63,446

SCHEDULE OF INVESTMENTS 13

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund

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

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

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for  Offset (a)			Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets (b)
Bank of America NA	$	10,355	$	(10,355	)	$	—	$	—	$	—
Barclays Bank plc		286		(57	)		—		—		229
BNP Paribas SA		294		(294	)		—		—		—
Citibank NA		9,784		(9,784	)		—		—		—
Credit Suisse International		98		(95	)		—		—		3
Deutsche Bank AG		2,338		(49	)		—		—		2,289
Goldman Sachs International		373		(373	)		—		—		—
HSBC Bank plc		2,677		(56	)		—		—		2,621
JPMorgan Chase Bank NA		2,283		(107	)		—		—		2,176
Morgan Stanley & Co. International plc		446		(446	)		—		—		—
Natwest Markets plc		28		(28	)		—		—		—
Standard Chartered Bank		2,298		—			—		—		2,298
State Street Bank and Trust Co.		4		(4	)		—		—		—
UBS AG		5,319		(461	)		—		—		4,858
	$	36,583	$	(22,109	)	$	—	$	—	$	14,474
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	$	19,970	$	(10,355	)	$	—	$	—	$	9,615
Barclays Bank plc		57		(57	)		—		—		—
BNP Paribas SA		740		(294	)		—		—		446
Citibank NA		35,530		(9,784	)		—		—		25,746
Credit Suisse International		95		(95	)		—		—		—
Deutsche Bank AG		49		(49	)		—		—		—
Goldman Sachs International		2,145		(373	)		—		—		1,772
HSBC Bank plc		56		(56	)		—		—		—
JPMorgan Chase Bank NA		107		(107	)		—		—		—
Morgan Stanley & Co. International plc		1,076		(446	)		—		—		630
Natwest Markets plc		42		(28	)		—		—		14
State Street Bank and Trust Co.		3,118		(4	)		—		—		3,114
UBS AG		461		(461	)		—		—		—
	$	63,446	$	(22,109	)	$	—	$	—	$	41,337

^(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.

14 2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (unaudited)  (continued) June 30, 2019 BlackRock U.S. Government Bond V.I. Fund

Fair Value Hierarchy as of Period End

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

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

	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—		$	1,351,189		$	—	$	1,351,189
Foreign Government Obligations (a)		—			499,067			—		499,067
Non-Agency Mortgage-Backed Securities		—			1,531,980			33,737		1,565,717
U.S. Government Sponsored Agency Securities		—			42,643,282			—		42,643,282
U.S. Treasury Obligations		—			25,294,034			—		25,294,034
Short-Term Securities:
Commercial Paper		—			496,675			—		496,675
Money Market Funds		1,102,876			—			—		1,102,876
U.S. Government Sponsored Agency Securities		—			5,491,597			—		5,491,597
Options Purchased:
Foreign currency exchange contracts		—			8,875			—		8,875
Interest rate contracts		—			5,095			—		5,095
Liabilities:
Investments:
TBA Sale Commitments		—			(11,974,757	)		—		(11,974,757	)
	$	1,102,876		$	65,347,037		$	33,737	$	66,483,650
Derivative Financial Instruments (b)
Assets:
Foreign currency exchange contracts	$	—		$	10,946		$	—	$	10,946
Interest rate contracts		40,892			81,101			—		121,993
Other contracts		—			18,653			—		18,653
Liabilities:
Foreign currency exchange contracts		—			(6,799	)		—		(6,799	)
Interest rate contracts		(26,925	)		(717,967	)		—		(744,892	)
Other contracts		—			(34,918	)		—		(34,918	)
	$	13,967		$	(648,984	)	$	—	$	(635,017	)

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

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

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount or face value, including accrued interest, for financial statement purposes. As of period end, reverse repurchase agreements of $8,560,401 are categorized as level 2 within the disclosure hierarchy.

See notes to financial statements.

SCHEDULE OF INVESTMENTS 15

Statement of Assets and Liabilities(unaudited)

June 30, 2019

	BlackRock U.S.  Government  Bond V.I. Fund
ASSETS
Investments at value — unaffiliated (cost — $75,928,945)	$	77,355,531
Investments at value — affiliated (cost — $1,102,876)		1,102,876
Cash		2,453
Cash pledged:
Futures contracts		131,710
Centrally cleared swaps		250,000
Foreign currency at value (cost — $72,999)		73,068
Receivables:
Investments sold		8,532,787
TBA sale commitments		11,938,809
Capital shares sold		56,557
Dividends — affiliated		4,586
Dividends — unaffiliated		8,142
Interest — unaffiliated		335,943
Variation margin on futures contracts		1,427
Variation margin on centrally cleared swaps		993
Unrealized appreciation on:
Forward foreign currency exchange contracts		10,946
OTC swaps		11,667
Prepaid expenses		738
Other assets		3,083
Total assets		99,821,316
LIABILITIES
Options written at value (premium received $57,402)		81,883
TBA sale commitments at value (proceeds $11,938,809)		11,974,757
Reverse repurchase agreements at value		8,560,401
Payables:
Investments purchased		16,206,698
Capital shares redeemed		463
Distribution fees		1,028
Income dividend distributions		105,977
Investment advisory fees		18,912
Directors’ and Officer’s fees		7,697
Other affiliates		127
Variation margin on futures contracts		2,084
Other accrued expenses		159,281
Unrealized depreciation on:
Forward foreign currency exchange contracts		6,799
OTC swaps		1,689
Total liabilities		37,127,796
NET ASSETS	$	62,693,520
NET ASSETS CONSIST OF
Paid-in capital	$	66,537,296
Accumulated loss		(3,843,776)
NET ASSETS	$	62,693,520
NET ASSET VALUE
Class I— Based on net assets of $55,149,500 and 5,373,359 shares outstanding, 300 million shares authorized, $0.10 par value	$	10.26
Class III— Based on net assets of $7,544,020 and 735,494 shares outstanding, 100 million shares authorized, $0.10 par value	$	10.26

See notes to financial statements.

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Operations(unaudited)

Six Months Ended June 30, 2019

	BlackRock U.S. Government Bond V.I. Fund
INVESTMENT INCOME
Dividends — affiliated	$	16,363
Dividends — unaffiliated		72
Interest — unaffiliated		1,095,145
Foreign taxes withheld		(59)
Total investment income		1,111,521
EXPENSES
Investment advisory		144,706
Transfer agent — class specific		59,029
Accounting services		42,946
Professional		38,165
Custodian		17,309
Pricing		15,462
Distribution — class specific		4,459
Directors and Officer		4,235
Printing		2,482
Transfer agent		2,480
Miscellaneous		1,667
Total expenses excluding interest expense		332,940
Interest expense		195,345
Total expenses		528,285
Less:
Fees waived and/or reimbursed by the Manager		(29,426)
Transfer agent fees waived and/or reimbursed — class specific		(57,959)
Total expenses after fees waived and/or reimbursed		440,900
Net investment income		670,621
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		250,068
Forward foreign currency exchange contracts		(24,279)
Foreign currency transactions		(3,746)
Futures contracts		250,339
Options written		7,777
Swaps		(38,401)
		441,758
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		1,962,137
Forward foreign currency exchange contracts		2,595
Foreign currency translations		860
Futures contracts		(56,809)
Options written		58,738
Swaps		(421,817)
		1,545,704
Net realized and unrealized gain		1,987,462
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	2,658,083

See notes to financial statements.

FINANCIAL STATEMENTS 17

Statements of Changes in Net Assets

	BlackRock U.S. Government Bond V.I. Fund
	Six Months Ended 06/30/19 (unaudited)			Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	670,621		$	1,275,743
Net realized gain (loss)		441,758			(684,974)
Net change in unrealized appreciation (depreciation)		1,545,704			(536,909)
Net increase in net assets resulting from operations		2,658,083			53,860
DISTRIBUTIONS TO SHAREHOLDERS (a)
Class I		(679,305	)		(1,272,977)
Class III		(39,001	)		(44,457)
Decrease in net assets resulting from distributions to shareholders		(718,306	)		(1,317,434)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		2,628,513			(7,496,000)
NET ASSETS
Total increase (decrease) in net assets		4,568,290			(8,759,574)
Beginning of period		58,125,230			66,884,804
End of period	$	62,693,520		$	58,125,230

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

See notes to financial statements.

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Cash Flows  (unaudited)

Six Months Ended June 30, 2019

	BlackRock U.S. Government Bond V.I. Fund
CASH PROVIDED BY OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	2,658,083
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Proceeds from sales of long-term investments and principal paydowns		269,925,049
Purchases of long-term investments		(261,399,413	)
Net purchases of short-term securities		(4,455,941	)
Amortization of premium and accretion of discount on investments		(50,968	)
Premiums received from options written		100,324
Premiums paid on closing options written		(91,715	)
Net realized (gain) loss on investments and options written		(257,845	)
Net unrealized (appreciation) depreciation on investments, options written, forward foreign currency exchange contracts, foreign currency translations and swaps		(2,029,257	)
(Increase) Decrease in Assets:
Receivables:
Dividends — affiliated		(2,993	)
Dividends — unaffiliated		1,086
Interest — unaffiliated		1,301
From the Manager		161,754
Variation margin on futures contracts		26,557
Variation margin on centrally cleared swaps		(993	)
Swap premiums paid		3,336
Prepaid expenses		(676	)
Other assets		899
Increase (Decrease) in Liabilities:
Payables:
Board realignment and consolidation		(161,754	)
Distribution fees		422
Interest expense and fees		664
Investment advisory fees		(23,491	)
Directors’ and Officers’ fees		2,556
Other affiliates		(31	)
Variation margin on futures contracts		305
Variation margin on centrally cleared swaps		(21,105	)
Other accrued expenses		39,688
Swap premiums received		(202	)
Net cash provided by operating activities		4,425,640
CASH USED FOR FINANCING ACTIVITIES
Cash dividends paid to shareholders		(214	)
Payments on redemption of capital shares		(5,245,598	)
Proceeds from issuance of capital shares		6,758,997
Net borrowing of reverse repurchase agreements		(5,989,055	)
Net cash used for financing activities		(4,475,870	)
CASH IMPACT FROM FOREIGN EXCHANGE FLUCTUATIONS
Cash impact from foreign exchange fluctuations		671
CASH AND FOREIGN CURRENCY
Net decrease in restricted and unrestricted cash and foreign currency		(49,559	)
Restricted and unrestricted cash and foreign currency at beginning of period		506,790
Restricted and unrestricted cash and foreign currency at end of period	$	457,231
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest expense	$	194,681
NON-CASH FINANCING ACTIVITIES
Capital shares issued in reinvestment of dividends and distributions paid to shareholders	$	722,335

See notes to financial statements.

FINANCIAL STATEMENTS 19

Statement of Cash Flows  (unaudited)  (continued)

Six Months Ended June 30, 2019

	Six Months Ended June 30, 2019		Year Ended December 31, 2018
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AND FOREIGN CURRENCY TO THE STATEMENT OF ASSETS AND LIABILITIES:
Cash	$	2,453	$	8,664
Cash pledged:
Futures contracts		131,710		110,710
Centrally cleared swaps		250,000		238,000
Foreign currency at value		73,068		149,416
	$	457,231	$	506,790

See notes to financial statements.

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond V.I. Fund
	Class I
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.93		$	10.12		$	10.18		$	10.23		$	10.39		$	10.04
Net investment income(a)		0.12			0.21			0.16			0.15			0.15			0.19
Net realized and unrealized gain (loss)		0.33			(0.18	)		(0.01	)		(0.01	)		(0.10	)		0.39
Net increase from investment operations		0.45			0.03			0.15			0.14			0.05			0.58
Distributions from net investment income(b)		(0.12	)		(0.22	)		(0.21	)		(0.19	)		(0.21	)		(0.23	)
Net asset value, end of period	$	10.26		$	9.93		$	10.12		$	10.18		$	10.23		$	10.39
Total Return(c)
Based on net asset value		4.61%(d)			0.29%			1.52%			1.33%			0.45%			5.87%
Ratios to Average Net Assets
Total expenses		1.81%(e)			1.85%			1.31%			1.02%			0.96%			0.89%
Total expenses after fees waived and/or reimbursed		1.50%(e)			1.27%			1.01%			0.76%			0.73%			0.69%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.83%(e)			0.82%			0.87%			0.70%			0.70%			0.66%
Net investment income		2.34%(e)			2.10%			1.58%			1.43%			1.41%			1.88%
Supplemental Data
Net assets, end of period (000)	$	55,150		$	54,820		$	65,100		$	72,433		$	83,016		$	92,975
Portfolio turnover rate(f)		394%			737%			1,052%			1,140%			1,581%			1,388%

^(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 insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)  Aggregate total return.

^(e) Annualized.

^(f)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:

	Six Months Ended 06/30/19 (unaudited)		Year Ended December 31,
			2018		2017		2016		2015		2014
Portfolio turnover rate (excluding MDRs)		254%		435%		681%		705%		991%		956%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 21

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond V.I. Fund
	Class III
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.92		$	10.11		$	10.18		$	10.22		$	10.39		$	10.04
Net investment income (a)		0.10			0.18			0.13			0.11			0.13			0.17
Net realized and unrealized gain (loss)		0.35			(0.18	)		(0.02	)		—			(0.12	)		0.38
Net increase from investment operations		0.45			0.00			0.11			0.11			0.01			0.55
Distributions from net investment income (b)		(0.11	)		(0.19	)		(0.18	)		(0.15	)		(0.18	)		(0.20)
Net asset value, end of period	$	10.26		$	9.92		$	10.11		$	10.18		$	10.22		$	10.39
Total Return (c)
Based on net asset value		4.55%(d)			(0.01)%			1.10%			1.08%			0.08%			5.56%
Ratios to Average Net Assets
Total expenses		2.01%(e)			2.03%			1.45%			1.27%			1.11%			1.09%
Total expenses after fees waived and/or reimbursed		1.81%(e)			1.57%			1.30%			1.08%			1.00%			1.00%
Total expenses after fees waived and/or reimbursed and excluding interest expense		1.14%(e)			1.13%			1.17%			1.01%			0.97%			0.98%
Net investment income		2.00%(e)			1.86%			1.30%			1.09%			1.27%			1.63%
Supplemental Data
Net assets, end of period (000)	$	7,544		$	3,305		$	1,785		$	2,758		$	1,894		$	750
Portfolio turnover rate (f)		394%			737%			1,052%			1,140%			1,581%			1,388%

^(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 insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)  Aggregate total return.

^(e)  Annualized.

^(f)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:

	Six Months Ended 06/30/19 (unaudited)		Year Ended December 31,
				2018		2017		2016		2015		2014
Portfolio turnover rate (excluding MDRs)		254%			435%		681%		705%		991%		956%

See notes to financial statements.

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited))

1. ORGANIZATION

BlackRock Variable Series Funds II, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Company is organized as a Maryland corporation that is comprised of 3 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and/or variable life insurance contracts. The financial statements presented are for BlackRock U.S. Government Bond V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have identical voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

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

2. SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. 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 (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: 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 portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the 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.

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

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on theex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

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

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

Recent Accounting Standards: The Fund has adopted Financial Accounting Standards Board Accounting Standards Update2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Fund has changed the amortization period for the premium on certain purchased callable debt securities withnon-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Fund applied the amendments on a modified retrospective basis beginning with the current reporting period ended June 30, 2019. The cost basis of securities at December 31, 2018 has been adjusted to $71,887,218. This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on total accumulated earnings (loss) or the net asset value of the Fund.

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.

NOTESTO FINANCIAL STATEMENTS 23

Notes to Financial Statements  (unaudited)  (continued)

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

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) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the period end). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

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

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

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

• Investments inopen-end U.S. mutual funds are valued at NAV each business day.

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

• Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

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

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

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

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

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)  (continued)

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

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

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

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by 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 investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

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

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

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

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

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

NOTESTO FINANCIAL STATEMENTS 25

Notes to Financial Statements  (unaudited)  (continued)

Non-agency mortgage-backed securities are securities issued bynon-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.

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

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

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

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

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

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

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

Cash received in exchange for securities delivered plus accrued interest due to the counterparty is recorded as a liability in the Statement of Assets and Liabilities at face value including accrued interest. Due to the short-term nature of the reverse repurchase agreements, face value approximates fair value. Interest payments made by a fund

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)  (continued)

to the counterparties are recorded as a component of interest expense in the Statement of Operations. In periods of increased demand for the security, a fund may receive a fee for the use of the security by the counterparty, which may result in interest income to a fund.

For the six months ended June 30, 2019, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate for the Fund were $15,376,070 and 2.52%, respectively.

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

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

Counterparty	Reverse Repurchase Agreements			Fair Value of Non-cash Collateral Pledged Including Accrued Interest(a)		Cash Collateral Pledged/ Received		Net Amount(b)
Amherst Pierpont Securities LLC	$	(2,586,732	)	$	2,586,732	$	—	$	—
Bank of America Securities, Inc.		(5,973,669	)		2,542,697		—		(3,430,972	) (c)
	$	(8,560,401	)	$	5,129,429	$	—	$	(3,430,972	)

^(a) Collateral with a value of $5,130,625 has been pledged in connection with open reverse repurchase agreements. Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

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

^(c)  Non-cash collateral with a value of $3,411,750 has been sold and is pending settlement as of June 30, 2019.

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

5. DERIVATIVE FINANCIAL INSTRUMENTS

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

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

Futures contracts are 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, is 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, foreign currency exchange rates or underlying assets.

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

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

The contract ismarked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the value at the time it was opened and the value at the

NOTESTO FINANCIAL STATEMENTS 27

Notes to Financial Statements  (unaudited)  (continued)

time it was closed.Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount reflected in the Statement of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statement of Assets and Liabilities.

Options: The Fund purchases and writes 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, such option is covered by cash in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in Cash pledged: Collateral — option written in the Statement of Assets and Liabilities.

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

• Interest rate caps — Interest rate caps are entered into to gain or reduce exposure to interest rates and interest rate risk. Caps are agreements whereby one party agrees to make payments to the other, in return for a premium, to the extent that interest rate indexes exceed a specified rate, or “cap.” The maximum potential amount of future payments that the Fund would be required to make under an interest rate cap would be the notional amount times the percentage increase in interest rates determined by the difference between the interest rate index current value and the value at the time the cap was entered into.

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

• Barrier options — The Fund may purchase and write a variety of options withnon-standard payout structures or other features (“barrier options”) that are generally traded OTC.

The Fund may invest in various types of barrier options, includingdown-and-out options,down-and-in options, doubleno-touch options,one-touch options,up-and-out options andup-and-in options.Down-and-out options expire worthless to the purchaser if the price of the underlying instrument falls below a specific barrier price level prior to the expiration date.Down-and-in options expire worthless to the purchaser unless the price of the underlying instrument falls below a specific barrier price level prior to the expiration date. Doubleno-touch options provide the purchaser an agreed-upon payout if the price of the underlying instrument does not reach or surpass predetermined barrier price levels prior to the option’s expiration date.One-touch options provide the purchaser an agreed-upon payout if the price of the underlying instrument reaches or surpasses predetermined barrier price levels prior to the expiration date.Up-and-out options expire worthless to the purchaser if the price of the underlying instrument increases beyond a predetermined barrier price level prior to the expiration date.Up-and-in options can only be exercised when the price of the underlying instrument increases beyond a predetermined barrier price level.

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 Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)  (continued)

the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statement of Operations.

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

The 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.

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

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

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

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

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the 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 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. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

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

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively.Non-cash collateral pledged by the Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the counterparty is not permitted to sell,re-pledge or use cash andnon-cash collateral it receives. The Fund generally agrees not to usenon-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 its counterparties are not fully collateralized, it bears the risk of loss from counterpartynon-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, it 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 Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”) to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

NOTESTO FINANCIAL STATEMENTS 29

Notes to Financial Statements  (unaudited)  (continued)

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

Average Daily Net Assets	Investment     Advisory Fees
First $1 Billion		0.50%
$1 Billion — $3 Billion		0.47
$3 Billion — $5 Billion		0.45
$5 Billion — $10 Billion		0.44
Greater than $10 Billion		0.43

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets attributable to Class III.

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

For the six months ended June 30, 2019, the class specific distribution fees borne directly by Class III were $4,459.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping,sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations, which is shown as transfer agent — class specific. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

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

Class I	$	56,297
Class III		2,732
	$	59,029

Expense Limitations, Waivers and Reimbursements: The Manager has voluntarily agreed to waive 0.10% of its investment advisory fee paid by the Fund. This voluntary waiver may be reduced or discontinued at any time without notice. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $28,941.

The Manager voluntarily 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”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2019, the amount waived was $485.

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 April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Company. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the six months ended June 30, 2019, the Fund reimbursed the Manager $329 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:

Class I	0.00	%
Class III	0.06

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Company.

30 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)  (continued)

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the six months ended June 30, 2019, class specific expense waivers and/or reimbursements are as follows:

	Transfer Agent Fees Waived and/or Reimbursed
Class I		$            56,297
Class III		1,662
		$            57,959

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

Class I	1.25	%
Class III	1.50

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Company. For the six months ended June 30, 2019, there were no fees waived and/or reimbursed by the Manager.

lnterfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “lnterfund 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 lnterfund 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 lnterfund Lending Program. A borrowing BlackRock fund may not borrow through the lnterfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the period ended June 30, 2019, the Fund did not participate in the lnterfund Lending Program.

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

7. PURCHASES AND SALES

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

	Purchases		Sales
Non-U.S. Government Securities	$	215,692,120	$	216,818,730
U.S. Government Securities		39,171,439		44,566,056

For the six months ended June 30, 2019, purchases and sales related to mortgage dollar rolls were $90,680,224 and $90,822,467, respectively.

8. INCOME TAX INFORMATION

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

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2018. 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 June 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of December 31, 2018, the Fund hadnon-expiring capital loss carryforwards available to offset future realized capital gains of $5,226,507.

NOTESTO FINANCIAL STATEMENTS 31

Notes to Financial Statements  (unaudited)  (continued)

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

Tax cost	$	77,051,356
Gross unrealized appreciation	$	1,761,582
Gross unrealized depreciation		(968,094	)
Net unrealized appreciation	$	793,488

9. BANK BORROWINGS

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended June 30, 2019, 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. The Fund’s prospectus provides details of the risks to which the Fund is subject.

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 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. 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 amark-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.

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

For OTC options purchased, 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 options purchased and 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

32 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)  (continued)

clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: 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 increase as interest rates fall and decrease as interest rates rise. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

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

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/19						Year Ended 12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		120,092		$	1,206,433			227,543		$	2,244,550
Shares issued in reinvestment of distributions		68,585			686,861			126,644			1,252,195
Shares redeemed		(335,826	)		(3,368,744	)		(1,268,374	)		(12,548,771	)
Net decrease		(147,149	)	$	(1,475,450	)		(914,187	)	$	(9,052,026	)
Class III
Shares sold		539,760		$	5,474,924			407,411		$	4,028,833
Shares issued in reinvestment of distributions		3,545			35,474			4,147			40,897
Shares redeemed		(140,810	)		(1,406,435	)		(255,082	)		(2,513,704	)
Net increase		402,495		$	4,103,963			156,476		$	1,556,026
Total Net Increase (Decrease)		255,346		$	2,628,513			(757,711	)	$	(7,496,000	)

As of June 30, 2019, BlackRock HoldCo 2, Inc., an affiliate of the Fund, owned 1,963 Class III Shares of BlackRock U.S. Government Bond V.I. Fund.

12. SUBSEQUENT EVENTS

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

NOTESTO FINANCIAL STATEMENTS 33

Glossary of Terms Used in this Report

Currency
BRL	Brazilian Real
CAD	Canadian Dollar
CLP	Chilean Peso
CNH	Chinese Yuan Offshore
COP	Colombian Peso
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
KRW	South Korean Won
MXN	Mexican Peso
PLN	Polish Zloty
RUB	New Russian Ruble
SGD	Singapore Dollar
TRY	Turkish Lira
TWD	Taiwan New Dollar
USD	United States Dollar
ZAR	South African Rand

Portfolio Abbreviations
BA	Canadian Bankers Acceptances
BZDIOVER	Overnight Brazil CETIP — Interbank Rate
EURIBOR	Euro Interbank Offered Rate
JIBAR	Johannesburg Interbank Average Rate
LIBOR	London Interbank Offered Rate
MXIBTIIE	Mexico Interbank TIIE28-Day
OTC	Over-the-counter
TBA	To-be-announced
USCPI	U.S. Consumer Price Index

34 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements

The Board of Directors (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Variable Series Funds, Inc. (the “Corporation”) met in person on April 17, 2019 (the “April Meeting”) and May14-15, 2019 (the “May Meeting”) to consider the approval of the investment advisory agreement (the “Advisory Agreement”) between the Corporation, on behalf of BlackRock Advantage Large Cap Core V.I. Fund (the “Large Cap Core V.I. Fund”), BlackRock Advantage Large Cap Value V.I. Fund (the “Large Cap Value V.I. Fund”), BlackRock Advantage U.S. Total Market V.I. Fund (the “U.S. Total Market V.I. Fund”), BlackRock Basic Value V.I. Fund (the “Basic Value V.I. Fund”), BlackRock Capital Appreciation V.I. Fund (the “Capital Appreciation V.I. Fund”), BlackRock Equity Dividend V.I. Fund (the “Equity Dividend V.I. Fund”), BlackRock Global Allocation V.I. Fund (the “Global Allocation V.I. Fund”), BlackRock Government Money Market V.I. Fund (the “Government Money Market V.I. Fund”), BlackRock International V.I. Fund (the “International V.I. Fund”), BlackRock International Index V.I. Fund (the “International Index V.I. Fund”), BlackRock iShares^® Dynamic Allocation V.I. Fund (the “Dynamic Allocation V.I. Fund”), BlackRock Large Cap Focus Growth V.I. Fund (the “Large Cap Focus Growth V.I. Fund”), BlackRock Managed Volatility V.I. Fund (the “Managed Volatility V.I. Fund”), BlackRock Small Cap Index V.I. Fund (the “Small Cap Index V.I. Fund”) and BlackRock S&P 500 Index V.I. Fund (the “S&P 500 Index V.I. Fund”) (each, a “Fund,” and collectively the “Funds”), each a series of the Corporation, and BlackRock Advisors, LLC (the “Manager”), the Corporation’s investment advisor. The Board also considered the approval of thesub-advisory agreements between the Manager and (a) BlackRock International Limited (“BIL”) with respect to International V.I. Fund and Managed Volatility V.I. Fund (the “BILSub-Advisory Agreements”); (b) BlackRock Asset Management North Asia Limited (“BNA”) with respect to Managed Volatility V.I. Fund (the “BNASub-Advisory Agreement”); and (c) BlackRock (Singapore) Limited (“BSL” and together with BIL and BNA, the“Sub-Advisors”) with respect to Managed Volatility V.I. Fund (the “BSLSub-Advisory Agreement” and together with the BILSub-Advisory Agreements and the BNASub-Advisory Agreement, the“Sub-Advisory Agreements”). The Manager and theSub-Advisors are referred to herein as “BlackRock.” The Advisory Agreements and theSub-Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

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

The Agreements

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

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

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April Meeting, the Board requested and received materials specifically relating to the Agreements. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”) and other metrics, as applicable; (b) information on the composition of the Expense Peers and Performance Peers, and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion offall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional

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accounts,sub-advised mutual funds, ETFs,closed-end funds,open-end funds, and separately managed accounts under similar investment mandates, as well as the performance of such other products, as applicable; (e) review ofnon-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Funds; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and each Fund’s operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the May Meeting.

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

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

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

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

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

B. The Investment Performance of the Funds and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the April Meeting, the Board was provided with reports independently prepared by Broadridge, which included a comprehensive analysis of each Fund’s performance as of December 31, 2018. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers and, with respect to Large Cap Core V.I. Fund, Large Cap Value V.I. Fund, U.S. Total Market V.I. Fund, Basic Value V.I. Fund, Capital Appreciation V.I. Fund, Global Allocation V.I. Fund, International V.I. Fund, Dynamic Allocation V.I. Fund and Large Cap Focus Growth V.I. Fund, its custom peer group of funds as defined by BlackRock (“Customized Peer Group”); with respect to International Index V.I. Fund, Small Cap Index V.I. Fund and S&P 500 Index V.I. Fund, the performance of the Fund as compared with its benchmark; and, with respect to Managed Volatility V.I. Fund, certain performance metrics. The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

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

The Board noted that for each of the one, three and five-year periods reported, the Government Money Market V.I. Fund ranked in the first quartile against its Performance Peers.

The Board noted that for the one, three and five-year periods reported, the Equity Dividend V.I. Fund ranked in the second, first and first quartiles, respectively, against its Performance Peers.

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The Board noted that for each of theone-year, three-year and since-inception periods reported, the Dynamic Allocation V.I. Fund ranked in the second quartile, against its Performance Peers.

The Board noted that for each of the one, three and five-year periods reported, the Large Cap Focus Growth V.I. Fund ranked in the first quartile, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one, three and five-year periods reported, the Capital Appreciation V.I. Fund ranked in the first, first and second quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one, three and five-year periods reported, the Managed Volatility V.I. Fund ranked in the first, third and third quartiles, respectively, against its Customized Peer Group.

In light of the Managed Volatility V.I. Fund’s outcome oriented objective, BlackRock believes that certain other performance metrics may be more appropriate than the Performance Peers, and the Board was provided with a comparison of Fund performance relative to these metrics. Under these metrics, for the one, three and five-year periods, the Fund underperformed its total return target. The overall risk of the Fund, as measured by the standard deviation of returns, was below its upper threshold level for the one, three and five-year periods and the maximum drawdowns were below the upper threshold level for all calendar years. The Fund’s Sharpe Ratio was above its competitor median for the one, three and five-year periods. The Fund’s beta was within its target range, for each of the periods.

The Board noted that for each of the one, three and five-year periods reported, the Large Cap Core V.I. Fund ranked in the second quartile, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for each of the one, three and five-year periods reported, the Large Cap Value V.I. Fund ranked in the second quartile, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one, three and five-year periods reported, the Global Allocation V.I. Fund ranked in the second, third and second quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s underperformance during the applicable periods.

The Board noted that for the one, three and five-year periods reported, the Basic Value V.I. Fund ranked in the second, third and fourth quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s underperformance during the applicable periods.

The Board noted that for the one, three and five-year periods reported, the U.S. Total Market V.I. Fund ranked in the third, first and fourth quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s underperformance during the applicable periods. The Board noted that, among other things, effective June 12, 2017, the Fund had undergone changes in its investment strategy and portfolio management team, and in connection with such changes, the Fund changed its name from BlackRock Value Opportunities V.I. Fund to BlackRock Advantage U.S. Total Market V.I. Fund.

The Board and BlackRock discussed BlackRock’s strategy for improving the U.S. Total Market V.I. Fund’s investment performance. Discussions covered topics such as performance attribution, the Fund’s investment personnel, and the resources appropriate to support the Fund’s investment processes.

The Board noted that for each of the one, three and five-year periods reported, the International V.I. Fund ranked in the fourth quartile, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s underperformance during the applicable periods. The Board was informed that, among other things, negative stock selections within the consumer staples, communication services, and technology sectors were the primary detractors from performance over theone-year period. Longer term performance was also impacted by relative underperformance in 2016 and 2014.

The Board and BlackRock discussed BlackRock’s strategy for improving the International V.I. Fund’s investment performance. Discussions covered topics such as performance attribution, the Fund’s investment personnel, and the resources appropriate to support the Fund’s investment processes.

The Board noted that for the past fiveone-year periods reported, the International Index V.I. Fund’s net performance outperformed its benchmark for two of the five periods. The Board noted that BlackRock believes that net performance relative to the benchmark is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the past fiveone-year periods reported, the Small Cap Index V.I. Fund’s net performance underperformed its benchmark for each of the periods. The Board noted that BlackRock believes that net performance relative to the benchmark is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for theone-year period reported, the S&P 500 Index V.I. Fund’s net performance was out of tolerance range of its benchmark. The Board noted that BlackRock believes that net performance relative to the benchmark is an appropriate performance metric for the Fund and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Fund’s out of tolerance performance over the applicable periods.

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

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total expense ratio represents a fund’s total net operating expenses, including any12b-1 or non12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts andsub-advised mutual funds (including mutual funds sponsored by third parties).

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

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

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

The Board noted that the Large Cap Core V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Large Cap Value V.I. Fund’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. Additionally, the Board noted that BlackRock had voluntarily agreed to waive a portion of the advisory fee payable by the Fund. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the U.S. Total Market V.I. Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Basic Value V.I. Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and third quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Capital Appreciation V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and third quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Equity Dividend V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Global Allocation V.I. Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Government Money Market V.I. Fund’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the International V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the second and fourth quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis. After discussions between the Board, including the Independent Board Members, and BlackRock, the Board and BlackRock agreed to a lower contractual expense cap, on aclass-by-class basis. The contractual expense cap reduction was implemented on May 24, 2019.

The Board noted that the International Index V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

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BlackRock has reviewed with the Board that the varying fee structure for fund of funds can limit the value of management fee comparisons. The Board noted that the Dynamic Allocation V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis. In addition, the Board noted that BlackRock and the Board agreed to a lower contractual expense cap on aclass-by-class basis, as applicable. This contractual expense cap reduction was implemented on October 26, 2018.

The Board noted that the Large Cap Focus Growth V.I. Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and third quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the Managed Volatility V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis. The Board also noted that BlackRock and the Board agreed to a lower contractual expense cap on aclass-by-class basis. The contractual expense cap reduction was implemented on April 23, 2018.

The Board noted that the Small Cap Index V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis.

The Board noted that the S&P 500 Index V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Fund’s Expense Peers. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on aclass-by-class basis. The Board also noted that BlackRock and the Board agreed to a lower contractual advisory fee rate and a lower contractual expense cap on aclass-by-class basis. These expense reductions were implemented on April 23, 2018.

With respect to the Large Cap Core V.I. Fund, the Large Cap Value V.I. Fund, the U.S. Total Market V.I. Fund, the Basic Value V.I. Fund, the Capital Appreciation V.I. Fund, the Equity Dividend V.I. Fund, the Global Allocation V.I. Fund, the Government Money Market V.I. Fund, the International V.I. Fund, the Dynamic Allocation V.I. Fund, the Large Cap Focus Growth V.I. Fund and the Managed Volatility V.I. Fund, the Board noted that each Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the pertinent Fund increases above certain contractually specified levels. The Board noted that if the size of the pertinent Fund were to decrease, the Fund could lose the benefit of one or more breakpoints.

With respect to the Large Cap Core V.I. Fund, the Large Cap Value V.I. Fund, the U.S. Total Market V.I. Fund, the Basic Value V.I. Fund, the Capital Appreciation V.I. Fund, the Equity Dividend V.I. Fund, the Global Allocation V.I. Fund, the International V.I. Fund, the International Index V.I. Fund, the Large Cap Focus Growth V.I. Fund, Managed Volatility V.I. Fund, the Small Cap Index V.I. Fund and the S&P 500 Index V.I. Fund, the Board noted that BlackRock and the Board have contractually agreed to a cap on certain operational and recordkeeping fees for each Fund on aclass-by-class basis.

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

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

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

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

Conclusion

The Board, including the Independent Board Members, unanimously approved the continuation of (i) the Advisory Agreement between the Manager and the Corporation, on behalf of each Fund, (ii) the BILSub-Advisory Agreements between the Manager and BIL with respect to the International V.I. Fund and Managed Volatility V.I. Fund, (iii) the BNASub-Advisory Agreement between the Manager and BNA with respect to the Managed Volatility V.I. Fund and (iv) BSLSub-Advisory Agreement between the Manager and BSL with respect to Managed Volatility V.I. Fund, each for aone-year term ending June 30, 2020. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund, as pertinent, and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors asall-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

DISCLOSUREOF INVESTMENT ADVISORY AGREEMENTSAND SUB-ADVISORY AGREEMENTS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements

The Board of Directors (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Variable Series Funds II, Inc. (the “Corporation”) met in person on May 1, 2019 (the “May Meeting”) and June5-6, 2019 (the “June Meeting”) to consider the approval of the investment advisory agreement (the “Advisory Agreement” or the “Agreement”) between the Corporation, on behalf of BlackRock High Yield V.I. Fund (the “High Yield V.I. Fund”), BlackRock Total Return V.I. Fund (the “Total Return V.I. Fund”) and BlackRock U.S. Government Bond V.I. Fund (the “U.S. Government Bond V.I. Fund”) (each, a “Fund,” and collectively, the “Funds”), each a series of the Corporation, and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), each Fund’s investment advisor.

Activities and Composition of the Board

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

The Agreement

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

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

Board Considerations in Approving the Agreement

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

At the May Meeting, the Board reviewed materials relating to its consideration of the Agreement. As a result of the discussions that occurred during the May Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the June Meeting. Topics covered included: (a) the methodology for measuring estimated fund profitability; (b) economies of scale; (c) fund expenses and potential fee waivers; and (d) differences in services provided and management fees betweenopen-end funds and other product channels.

At the June Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment

DISCLOSUREOF INVESTMENT ADVISORY AGREEMENTSAND SUB-ADVISORY AGREEMENTS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements  (continued)

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

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

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

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

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

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

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

The Board noted that for each of the one, three and five-year periods reported, the High Yield V.I. Fund ranked in the second quartile against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the High Yield V.I. Fund, and that BlackRock has explained its rationale for this belief to the Board.

The Board noted that for the one, three and five-year periods reported, the Total Return V.I. Fund ranked in the second, third, and second quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the Total Return V.I. Fund, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the Total Return V.I. Fund’s underperformance during the applicable period.

The Board noted that for the one, three and five-year periods reported, the U.S. Government Bond V.I. Fund ranked in the third, third and second quartiles, respectively, against its Customized Peer Group. The Board noted that BlackRock believes that the Customized Peer Group is an appropriate performance metric for the U.S. Government Bond V.I. Fund, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed the U.S. Government Bond V.I. Fund’s underperformance during the applicable periods.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with each Fund: The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any12b-1 or non12b-1 service fees. The total expense ratio gives effect to any expense

2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements  (continued)

reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts andsub-advised mutual funds (including mutual funds sponsored by third parties).

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

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

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

The Board noted that the High Yield V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the High Yield V.I. Fund’s Expense Peers. The Board also noted that the High Yield V.I. Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the aggregate assets of the High Yield V.I. Fund, combined with the assets of Total Return V.I. Fund, increase above certain contractually specified levels. The Board noted that if the size of the High Yield V.I. Fund or the Total Return V.I. Fund were to decrease, the High Yield V.I. Fund could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the High Yield V.I. Fund’s total expenses as a percentage of the High Yield V.I. Fund’s average daily net assets on aclass-by-class basis. Additionally, the Board noted that BlackRock and the Board have contractually agreed to a cap on certain operational and recordkeeping fees for the High Yield V.I. Fund on aclass-by-class basis.

The Board noted that the Total Return V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Total Return V.I. Fund’s Expense Peers. The Board also noted that the Total Return V.I. Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the aggregate assets of the Total Return V.I. Fund, combined with the assets of High Yield V.I. Fund, increase above certain contractually specified levels. The Board noted that if the size of the Total Return V.I. Fund or the High Yield V.I Fund were to decrease, the Total Return V.I. Fund could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Total Return V.I. Fund’s total expenses as a percentage of the Total Return V.I. Fund’s average daily net assets on aclass-by-class basis. Additionally, the Board noted that BlackRock and the Board have contractually agreed to a cap on certain operational and recordkeeping fees for the Total Return V.I. Fund on aclass-by-class basis.

The Board noted that the U.S. Government Bond V.I. Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and fourth quartiles, respectively, relative to the U.S. Government Bond V.I. Fund’s Expense Peers. The Board also noted that the U.S. Government Bond V.I. Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the U.S. Government Bond V.I. Fund increases above certain contractually specified levels. The Board noted that if the size of the Fund were to decrease, the U.S. Government Bond V.I. Fund could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the U.S. Government Bond V.I. Fund’s total expenses as a percentage of the U.S. Government Bond V.I. Fund’s average daily net assets on aclass-by-class basis. Additionally, the Board noted that BlackRock and the Board have contractually agreed to a cap on certain operational and recordkeeping fees for the U.S. Government Bond V.I. Fund on aclass-by-class basis. In addition, the Board noted that BlackRock has voluntarily agreed to waive a portion of the advisory fee payable by the U.S. Government Bond V.I. Fund. After discussion between the Board, including the Independent Board Members, and BlackRock, the Board and BlackRock agreed to increase the voluntary advisory fee waiver from 10 basis points to 26 basis points. The waiver increase was implemented on July 3, 2019.

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

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

DISCLOSUREOF INVESTMENT ADVISORY AGREEMENTSAND SUB-ADVISORY AGREEMENTS

Disclosure of Investment Advisory Agreement andSub-Advisory Agreements  (continued)

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

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

Conclusion

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

2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Director and Officer Information

BlackRock Variable Series Funds, Inc.

Mark Stalnecker, Chair of the Board and Director

Bruce R. Bond, Director

Susan J. Carter, Director

Collette Chilton, Director

Neil A. Cotty, Director

Lena G. Goldberg, Director

Robert M. Hernandez, Director

Henry R. Keizer, Director

Cynthia A. Montgomery, Director

Donald C. Opatrny, Director

Joseph P. Platt, Director

Kenneth L. Urish, Director

Claire A. Walton, Director

Robert Fairbairn, Director

John M. Perlowski, Director, President and Chief Executive Officer

Jennifer McGovern, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

John MacKessy, Anti-Money Laundering Compliance Officer

Benjamin Archibald, Secretary

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisers

BlackRock International Limited ^(b)

Edinburgh, EH3 8BL

United Kingdom

BlackRock Asset Management ^(c)

North Asia Limited

Hong Kong

BlackRock (Singapore) Limited ^(c)

079912 Singapore

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodians

JPMorgan Chase Bank, N.A.

New York, NY 10179

Brown Brothers Harriman & Co. ^(a)

Boston, MA 02109

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

^(a)  For BlackRock Global Allocation V.I. Fund, BlackRock International V.I. Fund and BlackRock Large Cap Focus Growth V.I. Fund.

^(b)  For BlackRock International V.I. Fund and BlackRock Managed Volatility V.I. Fund.

^(c)  For BlackRock Managed Volatility V.I. Fund.

DIRECTORAND OFFICER INFORMATION

Director and Officer Information  (continued)

BlackRock Variable Series Funds II, Inc.

Richard E. Cavanagh,Co-Chair of the Board and Director

Karen P. Robards,Co-Chair of the Board and Director

Michael J. Castellano, Director

Cynthia L. Egan, Director

Frank J. Fabozzi, Director

Henry Gabbay, Director

R. Glenn Hubbard, Director

W. Carl Kester, Director

Catherine A. Lynch, Director

Robert Fairbairn, Director

John M. Perlowski, Director, President and Chief Executive Officer

Jennifer McGovern, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

John MacKessy, Anti-Money Laundering Compliance Officer

Benjamin Archibald, Secretary

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

JPMorgan Chase Bank, N.A.

New York, NY 10179

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Additional Information

General Information

Householding

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

Availability of Quarterly Schedule of Investments

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

Availability of Proxy Voting Policies and Procedures

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

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent12-month period ended June 30 is available upon request and without charge (1) athttp://www.blackrock.com/prospectus/insurance or by calling (800)441-7762 and (2) on the SEC’s website athttp://www.sec.gov.

BlackRock’s Mutual Fund Family

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

Shareholder Privileges

Account Information

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

Automatic Investment Plans

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

Systematic Withdrawal Plans

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

Retirement Plans

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

ADDITIONAL INFORMATION

Additional Information  (continued)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding theirnon-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 personalnon-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 tonon-affiliated third parties anynon-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. Thesenon-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 tonon-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 thenon-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

This report is only for distribution to shareholders of the Funds of BlackRock Variable Series Funds, Inc. and BlackRock Variable Series Funds II, Inc. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value ofnon-money market fund shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. An investment in the BlackRock Government Money Market V.I. Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market funds. Statements and other information herein are as dated and are subject to change.

VS-6/19-SAR

Item 2 –	Code of Ethics – Not Applicable to this semi-annual report
Item 3 –	Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 –	Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 –	Audit Committee of Listed Registrants – Not Applicable
Item 6 –	Investments
	(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.
	(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures.

Item 11 –	Controls and Procedures
	(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
	(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

Item 13 –	Exhibits attached hereto
	(a)(1) – Code of Ethics – Not Applicable to this semi-annual report
	(a)(2) – Certifications – Attached hereto
	(a)(3) – Not Applicable

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(a)(4) – Not Applicable

(b) –   Certifications – Attached hereto

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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 Variable Series Funds II, Inc.

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

Date: August 27, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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

Date: August 27, 2019

By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Variable Series Funds II, Inc.

Date: August 27, 2019

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