BlackRock Funds IV 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:811-23341

Name of Fund: BlackRock Funds IV

BlackRock Systematic Multi-Strategy Fund

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds IV, 55 East 52^nd             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 Funds IV

^Ø  BlackRock Systematic Multi-Strategy Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call (800)-441-7762 to inform BlackRock that you wish to continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC, BlackRock Fund Advisors or their affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by: (i) accessing the BlackRock website at www.blackrock.com/edelivery and logging into your accounts, if you hold accounts directly with BlackRock, or (ii) contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

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.

2 THIS PAGEISNOT PARTOF YOUR FUND REPORT

Table of Contents

	Page
The Markets in Review		2
Semi-Annual Report:
FundSummary		4
About Fund Performance		7
Disclosure of Expenses		7
Derivative Financial Instruments		7
Financial Statements:
Schedule of Investments		8
Statement of Assets and Liabilities		37
Statement of Operations		38
Statements of Changes in Net Assets		39
Financial Highlights		40
Notes to Financial Statements		43
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement		54
Trustee and Officer Information		57
Additional Information		58
Glossary of Terms Used in this Report		59

3

Fund Summary  as of June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Investment Objective

BlackRock Systematic Multi-Strategy Fund’s (the “Fund”) investment objective is to seek total return comprised of current income and capital appreciation.

On November 28, 2018, the Board of BlackRock Funds IV approved a proposal to change the name of BlackRock Alternative Capital Strategies Fund to BlackRock Systematic Multi-Strategy Fund. This change became effective January 4, 2019.

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended June 30, 2019, the Fund outperformed both of its benchmarks, the Bloomberg Barclays U.S. Aggregate Bond Index and the ICE BofAML 3-Month U.S. Treasury Bill Index.

Fund Strategies

Core allocation across fixed-income and equity markets to balance interest rate and credit exposures. Strategies in the core portfolio may include mortgages, duration and curve, investment grade corporates, emerging markets, securitized credit, dividend equities and high yield.

Long/short alpha strategies seek equity securities and equity derivatives, primarily total return swaps, within a global opportunity set. These strategies seek to identify opportunities through a systematic approach by evaluating predicted returns relative to risk for each security. These strategies seek to provide an uncorrelated source of defensive returns.

Long/short macro strategies seek to capture returns through tactical trades to fixed income and equity markets. These strategies seek to tactically allocate and time directional exposures across several asset classes, such as credit default swaps, U.S. Treasures, U.K. Gilts and index futures.

What factors influenced performance?

The Fund’s directional asset allocation and macro strategies were the primary contributors to the Fund’s relative performance during the period. The directional asset allocation strategy’s outperformance came largely from its exposure to high-yield corporate credit and dividend equity securities, as well as its investment-grade corporate, agency mortgage, and securitized credit exposure. Strong overall market performance for these risk assets increased Fund returns. The macro strategy benefited from the decline in interest rates over the period, as it shifted its position early in the period to take advantage of falling rates. Similar positioning in the strategy’s Australian exposure also contributed to Fund performance.

The defensive equity long/short strategy was the primary detractor from the Fund’s relative performance during the period. The strong rally in risk assets resulted in a difficult environment for this strategy, which provides stability and downside protection for the Fund in down markets, doing best when investors focus more on measures of creditworthiness and balance sheet strength.

The Fund held derivatives during the period as a part of its investment strategy. Derivatives are used by the investment adviser as a means to manage and/or take outright views on interest rates, credit risk and/or foreign exchange positions in the Fund. Stand-alone performance impact from derivatives used to manage risk can be taken out of context, and may not necessarily portray the total performance impact of the position. The Fund’s use of U.S. Treasury futures, currency forwards, options, and swaps had a negative impact on performance for the period.

Describe recent portfolio activity.

The Fund continued throughout the period to apply its systematic investment approach, which combines asset allocation, defensive long/short alpha, and macro strategies across diversified asset classes. The Fund seeks to provide diversified alpha sources for balanced, consistent returns over time through various market conditions.

During the period, the macroeconomic model that drives top-down asset allocation within the Fund’s directional asset allocation strategy became more defensive amid renewed trade-related concerns. This resulted in reduced exposures to high-yield, dividend equity, and investment grade corporate credit, and an increase in the Fund’s mortgage exposure. The Fund also increased its overall duration during the period.

The Fund continued to use leveraged strategies, which involve holding cash in order to back investments in to-be-announced mortgage derivative securities. Despite having a reported cash position exceeding 5%, the Fund’s investable cash position was negative due to unsettled forward transactions on derivatives, which had a positive impact on Fund performance during the period.

Describe portfolio positioning at period end.

At period end, the Fund was positioned more defensively, having responded to deteriorating leading economic indicators and elevated geopolitical risks. The Fund had underweight exposure to corporate credit and equity assets at the end of the period, and was overweight in mortgage securities as a result of its rotation during the period.

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.

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of June 30, 2019 (continued) BlackRock Systematic Multi-Strategy Fund

Performance Summary for the Period Ended June 30, 2019

				Average Annual Total Returns (a)(b)
				1 Year						Since Inception (c)
	6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		7.36	%		10.13	%		N/A			5.11	%		N/A
Investor A		7.23			9.82			5.43	%		4.85			3.81	%
Investor C		6.94			9.02			8.02			4.06			4.06
ICE BofAML 3-Month U.S. Treasury Bill Index(d)		1.24			2.31			N/A			1.06			N/A
Bloomberg Barclays U.S. Aggregate Bond Index(d)		6.11			7.87			N/A			3.03			N/A

^(a) Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 7 for a detailed description of share classes, including any related sales charges and fees.

^(b) The Fund invests in a range of global asset classes, with a focus on fixed and floating rate debt securities and equity securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Alternative Capital Strategies Fund (the “Predecessor Fund”), a series of BlackRock Funds^SM, through a tax-free reorganization (the “Board Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Board Reorganization.

^(c) The Fund commenced operations on May 19, 2015.

^(d) ICE BofAML 3-Month U.S. Treasury Bill Index is an unmanaged index that tracks 3-month U.S. Treasury securities. Bloomberg Barclays U.S. Aggregate Bond Index is 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.

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

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

Expense Example

	Actual						Hypothetical (b)
	Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (a)		Beginning Account Value (01/01/19)		Ending Account Value (06/30/19)		Expenses Paid During the Period (a)		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,073.60	$	4.88	$	1,000.00	$	1,020.08	$	4.76		0.95	%
Investor A		1,000.00		1,072.30		6.17		1,000.00		1,018.84		6.01		1.20
Investor C		1,000.00		1,069.40		10.01		1,000.00		1,015.13		9.74		1.95

^(a)  For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365.

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

See “Disclosure of Expenses” on Page 7 for further information on how expenses were calculated.

FUND SUMMARY 5

Fund Summary  as of June 30, 2019 (continued) BlackRock Systematic Multi-Strategy Fund

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Net Assets (a)
U.S. Government Sponsored Agency Securities		48	%
Corporate Bonds		43
Asset-Backed Securities		13
Common Stocks		10
U.S. Treasury Obligations		6
Non-Agency Mortgage-Backed Securities		2
Short-Term Securities		8
TBA Sale Commitments		(9	)
Liabilities in Excess of Other Assets		(21	)

^(a)  Does not include underlying investment in total return swaps.

INDUSTRY

	Percentage of Total Investments (b)
Industry	Long			Short			Total
Consumer Discretionary		4	%		4	%		8	%
Industrials		4			2			6
Diversified Financial Services		3			—			3
Drug & Grocery Store Chains		3			—			3
Health Care		2			3			5
Energy		2			2			4
Consumer Staples		2			2			4
Information Technology		2			2			4
Financials		2			2			4
Materials		2			2			4
Oil, Gas & Consumable Fuels		2			—			2
Banks		2			—			2
Utilities		1			1			2
Communication Services		1			1			2
Real Estate		1			1			2
Electric Utilities		1			—			1
Equity Real Estate Investment Trusts (REITs)		1			—			1
Media		1			—			1
Hotels, Restaurants & Leisure		1			—			1
Consumer Finance		1			—			1
Others(c)		40			—			40
		78	%		22	%		100	%

^(b)  Total investments include the gross notional values of long and short positions of the underlying derivative contracts utilized by the Fund and exclude short-term securities and TBA sale commitments.

^(c)  Consist of Asset-Backed Securities (6%), Corporate Bonds (1%), Non-Agency Mortgaged-Backed Securities (3%) and U.S. Government Sponsored Agency Obligations (20%) with the remainder consisting of other industries held that were each 10% of investments (10% long).

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

About Fund Performance

Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 4.00% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. Effective November 8, 2018, the Fund adopted an automatic conversion feature whereby Investor C Shares held for approximately ten years will be automatically converted into Investor A Shares.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer towww.blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance table on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend/payable date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), the Fund’s investment adviser, has contractually agreed to waive and/or reimburse a portion of the Fund’s expenses. Without such waiver and/or reimbursement, the Fund’s performance would have been lower. The Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 6 of the Notes to Financial Statements for additional information on waivers and/or reimbursements.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples on the previous pages (which are based on a hypothetical investment of $1,000 invested on January 1, 2019 and held through June 30, 2019) are 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 Fund and 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 examples 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 any transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

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

ABOUT FUND PERFORMANCE / DISCLOSUREOF EXPENSES / DERIVATIVE FINANCIAL INSTRUMENTS 7

Schedule of Investments  (unaudited) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

Security	Shares		Value
Common Stocks — 9.4%
Banks — 0.0%
First Hawaiian, Inc.		2,187	$	56,604
Beverages — 0.4%
Coca-Cola European Partners PLC(a)		4,368		246,848
PepsiCo, Inc.		1,661		217,807
				464,655
Biotechnology — 0.2%
AbbVie, Inc.		2,926		212,852
Capital Markets — 0.1%
Federated Investors, Inc., Class B		1,869		60,743
Janus Henderson Group PLC		2,640		56,517
				117,260
Chemicals — 0.2%
Valvoline, Inc.		12,107		236,469
Consumer Finance — 0.0%
Ally Financial, Inc.		1,916		59,408
Containers & Packaging — 0.1%
Sonoco Products Co.		1,130		73,900
Distributors — 0.1%
Genuine Parts Co.		1,215		125,953
Diversified Telecommunication Services — 0.2%
Verizon Communications, Inc.		4,024		229,948
Electric Utilities — 1.9%
Alliant Energy Corp.		2,462		120,835
American Electric Power Co., Inc.		2,792		245,724
Avangrid, Inc.		4,941		249,571
Duke Energy Corp.		3,003		264,985
Evergy, Inc.		3,914		235,427
Eversource Energy		1,092		82,730
NextEra Energy, Inc.		482		98,743
OGE Energy Corp.		1,849		78,693
Pinnacle West Capital Corp.		1,554		146,216
Portland General Electric Co.		3,569		193,333
PPL Corp.		7,443		230,838
Southern Co.		4,497		248,594
Xcel Energy, Inc.		2,652		157,767
				2,353,456
Equity Real Estate Investment Trusts (REITs) — 1.5%
Brixmor Property Group, Inc.		3,249		58,092
Empire State Realty Trust, Inc., Class A		15,122		223,972
EPR Properties		3,034		226,306
MGM Growth Properties LLC, Class A		1,892		57,990
Mid-America Apartment Communities, Inc.		1,057		124,472
National Health Investors, Inc.		2,989		233,232
Outfront Media, Inc.		8,999		232,110
Public Storage		1,074		255,794
Spirit Realty Capital, Inc.		5,201		221,875
Ventas, Inc.		3,646		249,204
				1,883,047
Food Products — 1.0%
Campbell Soup Co.		1,969		78,898
Flowers Foods, Inc.		10,149		236,191
General Mills, Inc.		2,590		136,027
Hershey Co.		1,620		217,129
J.M. Smucker Co.		722		83,167
Kellogg Co.		3,216		172,281

Security	Shares		Value
Food Products (continued)
Kraft Heinz Co.		7,661	$	237,828
				1,161,521
Gas Utilities — 0.2%
ONE Gas, Inc.		2,610		235,773
Hotels, Restaurants & Leisure — 0.5%
Cracker Barrel Old Country Store, Inc.		1,505		256,948
McDonald’s Corp.		745		154,707
Six Flags Entertainment Corp.		3,243		161,162
				572,817
Household Products — 0.2%
Kimberly-Clark Corp.		1,007		134,213
Procter & Gamble Co.		1,104		121,163
				255,376
Insurance — 0.1%
Aflac, Inc.		1,334		73,117
Fidelity National Financial, Inc.		1,406		56,702
				129,819
IT Services — 0.2%
Sabre Corp.		12,961		287,756
Media — 0.0%
Cinemark Holdings, Inc.		1,530		55,269
Metals & Mining — 0.2%
Southern Copper Corp.		6,022		233,994
Multi-Utilities — 1.1%
Ameren Corp.		985		73,983
CMS Energy Corp.		2,234		129,371
Consolidated Edison, Inc.		2,482		217,622
Dominion Energy, Inc.		3,231		249,898
DTE Energy Co.		1,860		237,857
NorthWestern Corp.		927		66,883
Public Service Enterprise Group, Inc.		935		54,997
WEC Energy Group, Inc.		3,104		258,780
				1,289,391
Oil, Gas & Consumable Fuels — 0.8%
Enterprise Products Partners LP		7,923		228,766
Magellan Midstream Partners LP		3,843		245,952
Phillips 66 Partners LP		4,617		227,849
Plains GP Holdings LP, Class A(a)		9,700		242,234
				944,801
Pharmaceuticals — 0.1%
Johnson & Johnson		478		66,715
Tobacco — 0.3%
Altria Group, Inc.		4,460		211,228
Philip Morris International, Inc.		2,202		172,923
				384,151
Total Common Stocks — 9.4% (Cost — $10,871,646)				11,430,935
	Par (000)
Asset-Backed Securities — 12.6%
American Credit Acceptance Receivables Trust, Series 2017-1, Class D, 3.54%, 03/13/23(b)	$	1,200		1,209,854
AmeriCredit Automobile Receivables Trust, Class D:
Series 2016-3, 2.71%, 09/08/22		1,200		1,204,017
Series 2017-3, 3.18%, 07/18/23		150		151,668

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

	Par (000)		Value
Asset-Backed Securities (continued)
Avant Loans Funding Trust(b):
Series 2018-A, Class A, 3.09%, 06/15/21	$	19	$	18,974
Series 2018-A, Class B, 3.95%, 12/15/22		150		150,931
Series 2019-A, Class A, 3.48%, 07/15/22		187		187,316
CLUB Credit Trust, Series 2017-P2, Class A, 2.61%, 01/15/24(b)		29		29,265
Conn’s Receivables Funding LLC, Class A(b):
Series 2018-A, 3.25%, 01/15/23		31		30,671
Series 2019-A, 3.40%, 10/16/23		247		247,532
Consumer Loan Underlying Bond Credit Trust, Class A(b):
Series 2018-P1, 3.39%, 07/15/25		53		52,902
Series 2018-P2, 3.47%, 10/15/25		59		59,340
Series 2019-P1, 2.94%, 07/15/26(c)		980		980,392
Drive Auto Receivables Trust:
Series 2017-1, Class D, 3.84%, 03/15/23		150		151,811
Series 2017-2, Class D, 3.49%, 09/15/23		100		101,006
Series 2017-3, Class D, 3.53%, 12/15/23(b)		250		252,678
Series 2017-BA, Class D, 3.72%, 10/17/22(b)		150		150,896
Series 2018-1, Class C, 3.22%, 03/15/23		110		110,420
Series 2018-2, Class B, 3.22%, 04/15/22		89		89,568
Series 2018-2, Class D, 4.14%, 08/15/24		225		230,432
Series 2018-3, Class B, 3.37%, 09/15/22		60		60,228
Series 2019-1, Class B, 3.41%, 06/15/23		200		202,808
Series 2019-2, Class B, 3.17%, 11/15/23		225		228,317
Enva LLC, Series 2018-A, Class A, 4.20%, 05/20/26(b)		91		91,010
Exeter Automobile Receivables Trust(b):
Series 2015-1A, Class C, 4.10%, 12/15/20		4		3,526
Series 2018-4A, Class B, 3.64%, 11/15/22		90		91,058
Series 2019-1A, Class B, 3.45%, 02/15/23		190		192,513
Flagship Credit Auto Trust, Series 2016-4, Class B, 2.41%, 10/15/21(b)		44		44,088
Marlette Funding Trust(b):
Series 2018-3A, Class A, 3.20%, 09/15/28		47		47,248
Series 2018-3A, Class A, 2.69%, 09/15/29		1,010		1,009,918
Series 2018-3A, Class B, 3.86%, 09/15/28		300		303,541
Series 2018-4A, Class A, 3.71%, 12/15/28		141		142,810
Series 2019-1A, Class A, 3.44%, 04/16/29		126		126,822
Series 2019-2A, Class A, 3.13%, 07/16/29		400		402,330
Prosper Marketplace Issuance Trust, Class A(b):
Series 2018-1A, 3.11%, 06/17/24		11		11,390
Series 2018-2A, 3.35%, 10/15/24		151		151,758
Series 2019-1A, 3.54%, 04/15/25		76		76,613
Series 2019-2A, 3.20%, 09/15/25		360		360,837
Series 2019-3A, 3.19%, 07/15/25		1,600		1,605,313
Santander Drive Auto Receivables Trust:
Series 2015-1, Class D, 3.24%, 04/15/21		84		83,952
Series 2015-2, Class D, 3.02%, 04/15/21		112		111,680
Series 2016-1, Class C, 3.09%, 04/15/22		45		44,700
Series 2016-3, Class D, 2.80%, 08/15/22		100		100,572
Series 2017-2, Class C, 2.79%, 08/15/22		120		120,170
Series 2017-2, Class D, 3.49%, 07/17/23		250		252,743
Series 2018-4, Class C, 3.56%, 07/15/24		1,200		1,218,217
Series 2018-5, Class D, 4.19%, 12/16/24		50		51,786
SLM Private Education Loan Trust, Series 2011-B, Class A2, 3.74%, 02/15/29(b)		1		563
SoFi Consumer Loan Program LLC, Class A(b):
Series 2016-2A, 3.09%, 10/27/25		16		16,049
Series 2016-3, 3.05%, 12/26/25		20		20,434
Series 2017-1, 3.28%, 01/26/26		91		91,708
Series 2017-3, 2.77%, 05/25/26		33		33,363
SoFi Consumer Loan Program Trust(b):
Series 2015-1, Class A, 3.28%, 09/15/23		1		1,439
Series 2018-1, Class A1, 2.55%, 02/25/27		24		23,950
Series 2018-1, Class A2, 3.14%, 02/25/27		120		121,118
Series 2018-3, Class A1, 3.20%, 08/25/27		44		44,345

	Par (000)		Value
Asset-Backed Securities (continued)
Upgrade Receivables Trust, Class A(b):
Series 2018-1A, 3.76%, 11/15/24	$	112	$	112,645
Series 2019-1A, 3.48%, 03/15/25		76		76,613
Westlake Automobile Receivables Trust(b):
Series 2017-1A, Class D, 3.46%, 10/17/22		150		150,876
Series 2018-1A, Class D, 3.41%, 05/15/23		200		201,489
Series 2018-2A, Class B, 3.20%, 01/16/24		70		70,373
Series 2018-3A, Class B, 3.32%, 10/16/23		100		100,936
Series 2018-3A, Class D, 4.00%, 10/16/23		100		102,467
Series 2019-2A, Class B, 2.62%, 07/15/24		1,250		1,252,490
Series 2019-2A, Class D, 3.20%, 11/15/24		410		411,394
Total Asset-Backed Securities — 12.6% (Cost — $15,315,789)				15,377,873
Corporate Bonds — 42.7%
Aerospace & Defense — 1.0%
Arconic, Inc.:
5.13%, 10/01/24		50		52,803
5.90%, 02/01/27		125		136,100
BBA US Holdings, Inc., 5.38%, 05/01/26(b)		10		10,375
Boeing Co.:
2.70%, 05/01/22		600		608,635
3.10%, 05/01/26		100		102,913
Bombardier, Inc., 6.13%, 01/15/23(b)		50		50,688
Spirit AeroSystems, Inc., 3.95%, 06/15/23		35		36,120
TransDigm, Inc.:
6.25%, 03/15/26(b)		90		94,725
6.38%, 06/15/26		50		50,375
7.50%, 03/15/27(b)		50		52,188
United Technologies Corp., 3.95%, 08/16/25		30		32,352
				1,227,274
Air Freight & Logistics — 0.0%
XPO Logistics, Inc., 6.50%, 06/15/22(b)		7		7,140
Airlines — 0.1%
American Airlines Group, Inc., 4.63%, 03/01/20(b)		10		10,063
Delta Air Lines, Inc.:
2.60%, 12/04/20		25		24,978
3.40%, 04/19/21		75		76,129
United Continental Holdings, Inc., 5.00%, 02/01/24		25		25,875
				137,045
Auto Components — 0.7%
Adient US LLC, 7.00%, 05/15/26(b)		50		51,375
Allison Transmission, Inc.(b):
5.00%, 10/01/24		50		51,000
5.88%, 06/01/29		60		63,150
Dana Financing Luxembourg Sarl, 5.75%, 04/15/25(b)		50		51,312
Icahn Enterprises LP/Icahn Enterprises Finance Corp.:
5.88%, 02/01/22		100		101,000
6.38%, 12/15/25		100		102,080
6.25%, 05/15/26(b)		60		60,825
JB Poindexter & Co., Inc., 7.13%, 04/15/26(b)		25		25,500
Panther BF Aggregator 2 LP/Panther Finance Co., Inc.(b):
6.25%, 05/15/26		65		67,519
8.50%, 05/15/27		10		10,300
Tenneco, Inc., 5.00%, 07/15/26		25		20,125
Toyota Motor Corp., 2.76%, 07/02/29		30		30,214
Toyota Motor Credit Corp., 2.65%, 04/12/22		200		203,137
				837,537
Auto Parts — 0.0%
TPC Group, Inc., 8.75%, 12/15/20(b)		25		24,906

SCHEDULE OF INVESTMENTS 9

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

	Par (000)		Value
Automobiles — 0.0%
Ford Motor Co., 4.35%, 12/08/26	$	50	$	50,418
Banks — 3.3%
Bank of America NA, 3.34%, 01/25/23(d)		500		512,805
Bank of Montreal, 2.90%, 03/26/22		100		101,531
BB&T Corp., 3.05%, 06/20/22		100		102,147
Capital One Financial Corp.:
2.40%, 10/30/20		85		85,094
3.45%, 04/30/21		26		26,472
CIT Group, Inc., 6.13%, 03/09/28		25		28,437
Citibank NA, 3.65%, 01/23/24		400		421,157
HSBC Holdings PLC:
4.00%, 03/30/22		50		52,126
3.80%, 03/11/25(d)		450		468,860
HSBC USA, Inc., 3.50%, 06/23/24		400		416,841
Intesa Sanpaolo SpA, 5.02%, 06/26/24(b)		200		200,543
MUFG Union Bank NA, 3.15%, 04/01/22		250		255,613
Royal Bank of Canada, 2.80%, 04/29/22		200		203,152
SunTrust Bank, 2.80%, 05/17/22		100		101,274
Toronto-Dominion Bank, 2.65%, 06/12/24		200		201,806
Wells Fargo & Co.:
4.60%, 04/01/21		500		518,989
3.75%, 01/24/24		50		52,568
Wells Fargo Bank NA(3 mo. LIBOR US + 0.61%), 2.90%, 05/27/22(e)		300		302,829
				4,052,244
Beverages — 0.5%
Anheuser-Busch InBev Worldwide, Inc., 2.50%, 07/15/22		300		302,420
Keurig Dr. Pepper, Inc.:
4.06%, 05/25/23		150		157,481
4.42%, 05/25/25		140		150,043
3.43%, 06/15/27		50		50,475
				660,419
Building Materials — 0.1%
Allegion US Holding Co., Inc., 3.20%, 10/01/24		100		101,175
Summit Materials LLC, 6.13%, 07/15/23		10		10,125
				111,300
Building Products — 0.2%
Builders FirstSource, Inc., 5.63%, 09/01/24(b)		100		103,067
Louisiana-Pacific Corp., 4.88%, 09/15/24		25		25,406
Standard Industries, Inc.(b):
5.38%, 11/15/24		35		36,225
6.00%, 10/15/25		100		106,125
4.75%, 01/15/28		25		24,813
				295,636
Capital Markets — 1.7%
Brookfield Finance, Inc., 3.90%, 01/25/28		50		50,988
Goldman Sachs Group, Inc.:
5.25%, 07/27/21		150		158,543
5.75%, 01/24/22		500		540,392
3.63%, 02/20/24		100		104,334
3.75%, 05/22/25		75		78,448
3.27%, 09/29/25(d)		25		25,585
3.75%, 02/25/26		75		78,286
3.50%, 11/16/26		35		35,864
4.22%, 05/01/29(d)		50		53,625
LPL Holdings, Inc., 5.75%, 09/15/25(b)		50		51,188
Morgan Stanley:
2.63%, 11/17/21		50		50,303
2.75%, 05/19/22		550		555,770
4.88%, 11/01/22		25		26,754

	Par (000)		Value
Capital Markets (continued)
3.13%, 01/23/23	$	50	$	51,128
3.70%, 10/23/24		25		26,376
3.88%, 01/27/26		50		53,151
3.13%, 07/27/26		90		91,711
				2,032,446
Chemicals — 0.3%
Ashland LLC, 4.75%, 08/15/22		35		36,575
Celanese US Holdings LLC, 3.50%, 05/08/24		45		46,194
Chemours Co., 5.38%, 05/15/27		25		23,813
CVR Partners LP/CVR Nitrogen Finance Corp., 9.25%, 06/15/23(b)		25		26,142
OCI NV, 6.63%, 04/15/23(b)		200		208,000
Olin Corp., 5.13%, 09/15/27		50		51,312
PolyOne Corp., 5.25%, 03/15/23		35		36,925
				428,961
Commercial Services & Supplies — 0.3%
Exela Intermediate LLC/Exela Finance, Inc., 10.00%, 07/15/23(b)		50		40,625
IHS Markit Ltd.:
4.13%, 08/01/23		35		36,386
3.63%, 05/01/24		80		82,452
Iron Mountain US Holdings, Inc., 5.38%, 06/01/26(b)		100		100,375
United Rentals North America, Inc.:
4.63%, 10/15/25		50		50,813
4.88%, 01/15/28		50		51,000
5.25%, 01/15/30		50		51,375
				413,026
Communications Equipment — 0.4%
CommScope Technologies LLC, 6.00%, 06/15/25(b)		25		23,430
CommScope, Inc., 8.25%, 03/01/27(b)		100		101,985
Gogo Intermediate Holdings LLC/Gogo Finance Co., Inc., 9.88%, 05/01/24(b)		25		25,719
Motorola Solutions, Inc.:
4.00%, 09/01/24		54		56,232
4.60%, 02/23/28		50		52,458
4.60%, 05/23/29		100		104,595
ViaSat, Inc., 5.63%, 04/15/27(b)		100		104,000
Zayo Group LLC/Zayo Capital, Inc., 6.38%, 05/15/25		30		30,599
				499,018
Construction & Engineering — 0.1%
AECOM:
5.88%, 10/15/24		50		54,150
5.13%, 03/15/27		50		52,000
Brand Industrial Services, Inc., 8.50%, 07/15/25(b)		25		22,656
				128,806
Construction Materials — 0.0%
HD Supply, Inc., 5.38%, 10/15/26(b)		15		15,825
Consumer Finance — 1.7%
Ally Financial, Inc.:
5.13%, 09/30/24		25		27,000
5.75%, 11/20/25		150		165,922
American Express Co.:
3.70%, 11/05/21		500		515,435
2.75%, 05/20/22		100		101,221
2.50%, 08/01/22		50		50,317
3.40%, 02/27/23		50		51,761
Caterpillar Financial Services Corp., Series I, 2.65%, 05/17/21		125		126,119
Credit Acceptance Corp., 6.63%, 03/15/26(b)		60		63,075
goeasy Ltd., 7.88%, 11/01/22(b)		25		26,188

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

	Par (000)		Value
Consumer Finance (continued)
Mastercard, Inc.:
2.95%, 11/21/26	$	80	$	82,478
3.50%, 02/26/28		30		32,320
2.95%, 06/01/29		60		61,889
Navient Corp.:
5.00%, 10/26/20		15		15,300
6.63%, 07/26/21		25		26,469
7.25%, 09/25/23		100		106,750
6.13%, 03/25/24		50		51,250
5.88%, 10/25/24		25		25,281
6.75%, 06/15/26		50		51,875
Refinitiv US Holdings, Inc.(b):
6.25%, 05/15/26		15		15,428
8.25%, 11/15/26		20		20,570
Springleaf Finance Corp.:
6.13%, 05/15/22		50		53,625
6.13%, 03/15/24		100		107,500
6.88%, 03/15/25		100		109,498
7.13%, 03/15/26		40		43,825
Total System Services, Inc., 4.00%, 06/01/23		50		52,203
Verscend Escrow Corp., 9.75%, 08/15/26(b)		15		15,581
Visa, Inc., 2.75%, 09/15/27		25		25,497
				2,024,377
Containers & Packaging — 0.6%
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., 7.25%, 05/15/24(b)		200		210,750
Ball Corp.:
4.00%, 11/15/23		15		15,506
5.25%, 07/01/25		50		54,125
4.88%, 03/15/26		50		53,000
Berry Global Escrow Corp.(b):
4.88%, 07/15/26		65		66,381
5.63%, 07/15/27		15		15,600
Berry Global, Inc., 5.13%, 07/15/23		100		102,230
Clearwater Paper Corp., 5.38%, 02/01/25(b)		35		31,762
Greif, Inc., 6.50%, 03/01/27(b)		10		10,325
Mauser Packaging Solutions Holding Co., 5.50%, 04/15/24(b)		25		25,013
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu(b):
5.13%, 07/15/23		25		25,469
7.00%, 07/15/24		100		103,402
Sealed Air Corp., 5.50%, 09/15/25(b)		25		26,625
				740,188
Diversified Consumer Services — 0.3%
Graham Holdings Co., 5.75%, 06/01/26(b)		65		68,737
Prime Security Services Borrower LLC/Prime Finance, Inc., 5.25%, 04/15/24(b)		100		101,750
Service Corp. International:
4.63%, 12/15/27		50		51,063
5.13%, 06/01/29		55		57,887
ServiceMaster Co. LLC, 5.13%, 11/15/24(b)		125		128,594
				408,031
Diversified Financial Services — 6.1%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust, 5.00%, 10/01/21		200		209,767
Ares Capital Corp.:
3.50%, 02/10/23		50		49,756
4.25%, 03/01/25		50		50,622
Bank of America Corp.:
(3 mo. LIBOR US + 1.02%), 2.88%, 04/24/23(e)		50		50,522
3.00%, 12/20/23(d)		453		461,310

	Par (000)		Value
Diversified Financial Services (continued)
3.46%, 03/15/25(d)	$	200	$	207,612
3.56%, 04/23/27(d)		500		521,958
(3 mo. LIBOR US + 1.58%), 3.82%, 01/20/28(e)		50		52,927
3.42%, 12/20/28(d)		54		55,566
4.27%, 07/23/29(d)		45		49,149
Citigroup, Inc.:
2.90%, 12/08/21		500		505,185
4.50%, 01/14/22		50		52,559
2.75%, 04/25/22		100		100,917
(3 mo. LIBOR US + 0.95%), 2.88%, 07/24/23(e)		100		101,290
4.04%, 06/01/24(d)		50		52,854
3.35%, 04/24/25(d)		75		77,473
Ford Motor Credit Co. LLC:
3.47%, 04/05/21		200		201,397
5.60%, 01/07/22		200		211,718
5.58%, 03/18/24		400		429,351
General Motors Financial Co., Inc.:
4.20%, 03/01/21		50		51,110
4.20%, 11/06/21		65		66,930
3.45%, 04/10/22		50		50,708
3.55%, 07/08/22		690		702,347
3.25%, 01/05/23		50		50,181
4.15%, 06/19/23		195		200,849
Intercontinental Exchange, Inc., 3.75%, 12/01/25		425		453,946
John Deere Capital Corp.:
2.30%, 06/07/21		200		200,548
2.60%, 03/07/24		40		40,433
JPMorgan Chase & Co.:
2.40%, 06/07/21		500		501,349
2.97%, 01/15/23		100		101,451
3.21%, 04/01/23(d)		700		714,412
3.88%, 09/10/24		25		26,283
3.13%, 01/23/25		50		51,416
(3 mo. LIBOR US + 1.16%), 3.22%, 03/01/25(e)		50		51,415
3.30%, 04/01/26		50		51,672
4.20%, 07/23/29(d)		35		38,268
3.70%, 05/06/30(d)		250		263,593
Mitsubishi UFJ Financial Group, Inc., 3.46%, 03/02/23		50		51,405
Nationstar Mortgage LLC/Nationstar Capital Corp., 6.50%, 06/01/22		50		49,500
ORIX Corp., 2.90%, 07/18/22		25		25,381
Quicken Loans, Inc., 5.75%, 05/01/25(b)		15		15,469
S&P Global, Inc., 4.40%, 02/15/26		100		110,193
Sally Holdings LLC/Sally Capital, Inc., 5.63%, 12/01/25		25		24,530
Voyager Aviation Holdings LLC/Voyager Finance Co., 8.50%, 08/15/21(b)		25		25,375
WMG Acquisition Corp., 5.00%, 08/01/23(b)		25		25,500
				7,386,197
Diversified Telecommunication Services — 1.5%
AT&T, Inc.:
3.88%, 08/15/21		500		515,105
3.20%, 03/01/22		40		40,851
3.80%, 03/01/24		80		84,158
4.35%, 03/01/29		25		26,927
CC Holdings GS V LLC/Crown Castle GS III Corp., 3.85%, 04/15/23		25		26,119
CenturyLink, Inc.:
Series S, 6.45%, 06/15/21		50		52,875
Series Y, 7.50%, 04/01/24		25		27,656
Embarq Corp., 8.00%, 06/01/36		25		24,195
Frontier Communications Corp.:
10.50%, 09/15/22		25		16,938
11.00%, 09/15/25		10		6,200
8.50%, 04/01/26(b)		60		58,200

SCHEDULE OF INVESTMENTS 11

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

	Par (000)		Value
Diversified Telecommunication Services (continued)
Level 3 Financing, Inc., 5.25%, 03/15/26	$	25	$	25,875
Qwest Corp., 7.25%, 09/15/25		25		27,835
Sable International Finance Ltd., 5.75%, 09/07/27(b)		200		201,375
Telecom Italia Capital SA, 6.00%, 09/30/34		100		102,000
Verizon Communications, Inc.:
3.13%, 03/16/22		500		512,389
3.38%, 02/15/25		53		55,321
				1,804,019
Electric Utilities — 0.9%
AEP Texas, Inc., 3.95%, 06/01/28		50		53,442
AES Corp., 4.00%, 03/15/21		100		101,750
Atlantic City Electric Co., 4.00%, 10/15/28		50		54,885
Avangrid, Inc., 3.80%, 06/01/29		100		104,653
Dominion Energy, Inc., Series B, 2.75%, 01/15/22		50		50,372
Duke Energy Corp., 3.05%, 08/15/22		50		50,967
Eversource Energy, Series N, 3.80%, 12/01/23		100		105,514
Georgia Power Co., 3.25%, 03/30/27		50		50,497
NextEra Energy Capital Holdings, Inc., 3.50%, 04/01/29		200		208,025
NextEra Energy Operating Partners LP(b):
4.25%, 07/15/24		30		30,188
4.25%, 09/15/24		25		25,132
PSEG Power LLC, 3.85%, 06/01/23		100		104,195
Talen Energy Supply LLC, 7.25%, 05/15/27(b)		60		61,500
Union Electric Co., 3.50%, 03/15/29		50		52,974
				1,054,094
Electronic Equipment, Instruments & Components — 0.1%
CDW LLC/CDW Finance Corp., 5.50%, 12/01/24		100		106,900
Energy Equipment & Services — 0.1%
McDermott Technology Americas, Inc./McDermott Technology U.S., Inc., 10.63%, 05/01/24(b)		25		23,367
USA Compression Partners LP/USA Compression Finance Corp., 6.88%, 09/01/27(b)		50		52,506
				75,873
Environmental, Maintenance, & Security Service — 0.0%
Tervita Escrow Corp., 7.63%, 12/01/21(b)		25		25,430
Equity Real Estate Investment Trusts (REITs) — 1.0%
American Campus Communities Operating Partnership LP, 3.30%, 07/15/26		200		202,021
CBL & Associates LP, 4.60%, 10/15/24		25		16,750
CoreCivic, Inc.:
5.00%, 10/15/22		25		24,875
4.75%, 10/15/27		50		45,000
Hospitality Properties Trust, 3.95%, 01/15/28		200		188,462
Iron Mountain, Inc., 4.88%, 09/15/27(b)		50		49,563
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc.:
5.63%, 05/01/24		50		53,875
5.75%, 02/01/27(b)		110		118,525
MPT Operating Partnership LP/MPT Finance Corp., 5.00%, 10/15/27		100		103,000
Omega Healthcare Investors, Inc., 4.50%, 04/01/27		100		104,569
SBA Communications Corp., 4.88%, 09/01/24		200		206,000
Ventas Realty LP, 2.65%, 01/15/25(f)		55		54,776
Welltower, Inc., 4.25%, 04/15/28		50		53,468
				1,220,884
Food & Staples Retailing — 0.6%
Dollar Tree, Inc., 3.70%, 05/15/23		60		61,950
Lamb Weston Holdings, Inc., 4.88%, 11/01/26(b)		50		52,000
McCormick & Co., Inc., 3.15%, 08/15/24		300		306,365

	Par (000)		Value
Food & Staples Retailing (continued)
Mondelez International, Inc.:
3.63%, 05/07/23	$	100	$	104,870
3.63%, 02/13/26		215		225,858
				751,043
Food Products — 0.3%
JBS USA LUX SA/JBS USA Finance, Inc.(b):
5.88%, 07/15/24		25		25,718
5.75%, 06/15/25		50		52,125
Pilgrim’s Pride Corp.(b):
5.75%, 03/15/25		100		101,500
5.88%, 09/30/27		25		25,906
Post Holdings, Inc.(b):
5.00%, 08/15/26		50		50,688
5.75%, 03/01/27		25		25,813
5.63%, 01/15/28		50		51,375
				333,125
Gas Utilities — 0.2%
NiSource, Inc., 3.65%, 06/15/23		45		46,618
Piedmont Natural Gas Co., Inc., 3.50%, 06/01/29		100		104,639
Suburban Propane Partners LP/Suburban Energy Finance Corp., 5.50%, 06/01/24		100		100,500
				251,757
Health Care Equipment & Supplies — 0.7%
Abbott Laboratories, 3.40%, 11/30/23		70		72,983
Becton Dickinson & Co., 2.89%, 06/06/22		30		30,408
Boston Scientific Corp.:
3.38%, 05/15/22		50		51,419
3.45%, 03/01/24		80		83,499
Celgene Corp., 2.25%, 08/15/21		100		99,671
Hill-Rom Holdings, Inc., 5.00%, 02/15/25(b)		25		25,750
Hologic, Inc., 4.38%, 10/15/25(b)		50		50,687
Mallinckrodt International Finance SA/Mallinckrodt CB LLC(b):
5.75%, 08/01/22		25		21,500
5.63%, 10/15/23		25		18,875
5.50%, 04/15/25		50		33,500
Medtronic, Inc., 3.15%, 03/15/22		300		308,420
Ortho-Clinical Diagnostics, Inc./Ortho-Clinical Diagnostics SA, 6.63%, 05/15/22(b)		25		23,875
Teleflex, Inc., 4.88%, 06/01/26		25		25,938
				846,525
Health Care Providers & Services — 1.4%
Anthem, Inc.:
2.95%, 12/01/22		25		25,357
4.10%, 03/01/28		35		37,442
Centene Corp.:
5.63%, 02/15/21		30		30,562
5.38%, 06/01/26(b)		30		31,537
CHS/Community Health Systems, Inc.:
6.25%, 03/31/23		100		96,250
8.00%, 03/15/26(b)		50		48,110
DaVita, Inc., 5.13%, 07/15/24		25		25,007
Encompass Health Corp., 5.75%, 11/01/24		23		23,421
Envision Healthcare Crop., 8.75%, 10/15/26(b)		25		17,438
HCA, Inc.:
5.00%, 03/15/24		50		54,472
5.38%, 02/01/25		200		215,875
5.88%, 02/15/26		100		110,500
5.25%, 06/15/26		100		110,721
5.38%, 09/01/26		10		10,775
4.50%, 02/15/27		100		106,686
5.63%, 09/01/28		10		10,825

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

	Par (000)		Value
Health Care Providers & Services (continued)
5.88%, 02/01/29	$	80	$	87,700
4.13%, 06/15/29		30		30,839
Tenet Healthcare Corp.:
6.00%, 10/01/20		100		102,944
6.75%, 06/15/23		25		25,094
4.63%, 07/15/24		50		50,625
UnitedHealth Group, Inc.:
3.35%, 07/15/22		250		258,460
3.10%, 03/15/26		50		51,495
WellCare Health Plans, Inc.:
5.25%, 04/01/25		100		104,250
5.38%, 08/15/26(b)		85		90,100
				1,756,485
Health Care Technology — 0.2%
IQVIA, Inc., 5.00%, 10/15/26(b)		200		206,500
Hotels, Restaurants & Leisure — 1.5%
1011778 BC ULC/New Red Finance, Inc.(b):
4.63%, 01/15/22		35		35,000
4.25%, 05/15/24		50		50,563
5.00%, 10/15/25		175		176,365
Boyd Gaming Corp., 6.00%, 08/15/26		10		10,513
Cedar Fair LP, 5.25%, 07/15/29(b)		15		15,305
Darden Restaurants, Inc., 3.85%, 05/01/27		35		36,158
Eldorado Resorts, Inc., 6.00%, 09/15/26		10		10,925
GLP Capital LP/GLP Financing II, Inc.:
5.25%, 06/01/25		150		160,710
5.38%, 04/15/26		140		151,403
Golden Nugget, Inc., 6.75%, 10/15/24(b)		50		51,500
Hilton Domestic Operating Co., Inc.:
5.13%, 05/01/26		75		78,281
4.88%, 01/15/30(b)		25		25,750
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp.:
4.63%, 04/01/25		100		102,375
4.88%, 04/01/27		50		51,673
KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC(b):
5.25%, 06/01/26		125		131,092
4.75%, 06/01/27		25		25,625
McDonald’s Corp., 3.38%, 05/26/25		50		52,316
MGM Resorts International:
7.75%, 03/15/22		100		111,500
5.50%, 04/15/27		50		52,437
Scientific Games International, Inc.:
10.00%, 12/01/22		8		8,390
5.00%, 10/15/25(b)		25		25,250
Starbucks Corp., 3.55%, 08/15/29		300		314,116
Stars Group Holdings BV/Stars Group US Co-Borrower LLC, 7.00%, 07/15/26(b)		10		10,575
Wyndham Hotels & Resorts, Inc., 5.38%, 04/15/26(b)		50		52,312
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., 4.25%, 05/30/23(b)		50		49,875
				1,790,009
Household Durables — 0.5%
Lennar Corp.:
4.13%, 01/15/22		100		102,595
5.88%, 11/15/24		50		54,812
MDC Holdings, Inc., 5.50%, 01/15/24		50		53,250
Meritage Homes Corp., 5.13%, 06/06/27		50		50,750
PulteGroup, Inc.:
5.50%, 03/01/26		100		108,000
5.00%, 01/15/27		100		104,731

	Par (000)		Value
Household Durables (continued)
Shea Homes LP/Shea Homes Funding Corp., 6.13%, 04/01/25(b)	$	25	$	25,237
Toll Brothers Finance Corp., 4.35%, 02/15/28		25		24,938
TRI Pointe Group, Inc./TRI Pointe Homes, Inc., 5.88%, 06/15/24		50		51,610
				575,923
Independent Power and Renewable Electricity Producers — 0.3%
Calpine Corp., 5.25%, 06/01/26(b)		100		101,750
Clearway Energy Operating LLC, 5.75%, 10/15/25(b)		40		40,600
NRG Energy, Inc., 6.63%, 01/15/27		100		108,625
TerraForm Power Operating LLC(b):
4.25%, 01/31/23		50		49,938
5.00%, 01/31/28		75		75,281
				376,194
Insurance — 0.8%
Acrisure LLC/Acrisure Finance, Inc., 8.13%, 02/15/24(b)		50		51,625
American International Group, Inc., 4.88%, 06/01/22		250		268,012
Fidelity & Guaranty Life Holdings, Inc., 5.50%, 05/01/25(b)		15		15,563
Marsh & McLennan Cos., Inc.:
3.88%, 03/15/24		25		26,530
3.50%, 03/10/25		200		207,948
4.38%, 03/15/29		140		154,462
Radian Group, Inc., 4.50%, 10/01/24		50		51,214
Trinity Acquisition PLC, 3.50%, 09/15/21		50		50,880
Willis North America, Inc., 4.50%, 09/15/28		100		107,625
				933,859
Interactive Media & Services — 0.4%
Match Group, Inc., 5.63%, 02/15/29(b)		35		36,925
Netflix, Inc.:
4.88%, 04/15/28		100		103,125
5.88%, 11/15/28		100		110,712
5.38%, 11/15/29(b)		50		53,109
VeriSign, Inc.:
4.63%, 05/01/23		35		35,571
5.25%, 04/01/25		50		53,375
4.75%, 07/15/27		50		52,063
				444,880
Internet & Direct Marketing Retail — 0.9%
Alibaba Group Holding Ltd.:
2.80%, 06/06/23		500		501,731
3.40%, 12/06/27		400		405,414
Expedia Group, Inc., 4.50%, 08/15/24		125		132,985
				1,040,130
IT Services — 1.3%
Fiserv, Inc., 3.20%, 07/01/26		75		76,551
International Business Machines Corp.:
2.85%, 05/13/22		700		711,931
3.00%, 05/15/24		300		308,092
3.50%, 05/15/29		100		104,658
j2 Cloud Services LLC/j2 Global Co-Obligor, Inc., 6.00%, 07/15/25(b)		50		52,375
Outfront Media Capital LLC/Outfront Media Capital Corp., 5.00%, 08/15/27(b)		25		25,592
Verisk Analytics, Inc.:
4.13%, 03/15/29		100		107,190
4.00%, 06/15/25		50		53,392
Xerox Corp., 4.13%, 03/15/23		100		101,791
				1,541,572
Life Sciences Tools & Services — 0.2%
Thermo Fisher Scientific, Inc., 3.30%, 02/15/22		250		255,973

SCHEDULE OF INVESTMENTS 13

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

	Par (000)		Value
Machinery — 0.1%
Colfax Corp., 6.00%, 02/15/24(b)	$	60	$	63,450
Mueller Water Products, Inc., 5.50%, 06/15/26(b)		5		5,169
				68,619
Media — 2.1%
Altice Financing SA, 6.63%, 02/15/23(b)		200		205,000
Altice France SA, 6.25%, 05/15/24(b)		200		206,000
AMC Networks, Inc., 4.75%, 08/01/25		25		25,250
CCO Holdings LLC/CCO Holdings Capital Corp.:
5.25%, 09/30/22		50		50,755
5.88%, 04/01/24(b)		275		287,375
5.75%, 02/15/26(b)		25		26,219
5.13%, 05/01/27(b)		150		155,304
5.00%, 02/01/28(b)		100		102,120
Charter Communications Operating LLC/Charter Communications Operating Capital:
3.58%, 07/23/20		50		50,448
4.50%, 02/01/24		100		106,575
5.05%, 03/30/29		200		220,928
Comcast Corp.:
3.70%, 04/15/24		65		68,988
3.95%, 10/15/25		30		32,366
CSC Holdings LLC:
5.25%, 06/01/24		200		207,750
5.50%, 05/15/26(b)		200		209,740
DISH DBS Corp.:
5.88%, 07/15/22		100		101,500
5.00%, 03/15/23		50		48,312
5.88%, 11/15/24		25		23,656
7.75%, 07/01/26		75		72,750
Fox Corp., 4.03%, 01/25/24(b)		35		37,228
Gray Television, Inc.(b):
5.88%, 07/15/26		14		14,525
7.00%, 05/15/27		35		37,975
Hughes Satellite Systems Corp., 5.25%, 08/01/26		35		35,963
Intelsat Jackson Holdings SA(b):
8.50%, 10/15/24		30		29,700
9.75%, 07/15/25		50		51,000
Sirius XM Radio, Inc.(b):
5.38%, 04/15/25		35		36,094
5.00%, 08/01/27		25		25,435
Time Warner Cable LLC, 4.00%, 09/01/21		20		20,528
Univision Communications, Inc., 5.13%, 02/15/25(b)		15		14,269
				2,503,753
Metals & Mining — 0.8%
Big River Steel LLC/BRS Finance Corp., 7.25%, 09/01/25(b)		25		26,264
Cleveland-Cliffs, Inc.:
5.75%, 03/01/25		20		19,900
5.88%, 06/01/27(b)		150		145,875
Commercial Metals Co., 5.75%, 04/15/26		50		49,913
FMG Resources August 2006 Property Ltd., 5.13%, 05/15/24(b)		50		51,875
Freeport-McMoRan, Inc.:
3.55%, 03/01/22		50		50,187
3.88%, 03/15/23		100		100,000
5.45%, 03/15/43		25		22,875
Hudbay Minerals, Inc., 7.63%, 01/15/25(b)		50		51,625
Novelis Corp., 5.88%, 09/30/26(b)		25		25,313
Rio Tinto Finance USA Ltd., 3.75%, 06/15/25		100		107,455
Steel Dynamics, Inc., 5.50%, 10/01/24		50		51,812
United States Steel Corp., 6.25%, 03/15/26		30		26,700
Vale Overseas Ltd., 6.25%, 08/10/26		200		226,685
				956,479

	Par (000)		Value
Multi-Utilities — 0.1%
AmeriGas Partners LP/AmeriGas Finance Corp.:
5.63%, 05/20/24	$	45	$	47,925
5.50%, 05/20/25		50		52,625
National Fuel Gas Co., 3.95%, 09/15/27		40		39,965
				140,515
Office Supplies & Equipment — 0.3%
VMware, Inc.:
2.30%, 08/21/20		300		299,193
2.95%, 08/21/22		40		40,322
3.90%, 08/21/27		50		50,718
				390,233
Oil, Gas & Consumable Fuels — 2.9%
Antero Midstream Partners LP/Antero Midstream Finance Corp., 5.38%, 09/15/24		100		99,375
Antero Resources Corp., 5.13%, 12/01/22		50		48,000
BP Capital Markets America, Inc., 2.52%, 09/19/22		500		503,980
California Resources Corp., 8.00%, 12/15/22(b)		50		37,688
Cheniere Corpus Christi Holdings LLC, 5.88%, 03/31/25		100		111,375
Cheniere Energy Partners LP:
5.63%, 10/01/26(b)		135		142,425
Series WI, 5.25%, 10/01/25		50		51,687
Chesapeake Energy Corp.:
7.00%, 10/01/24		30		26,925
8.00%, 03/15/26(b)		50		45,375
Comstock Resources, Inc., 9.75%, 08/15/26		50		38,375
CrownRock LP/CrownRock Finance, Inc., 5.63%, 10/15/25(b)		25		25,063
DCP Midstream Operating LP, 5.38%, 07/15/25		30		31,613
Diamond Offshore Drilling, Inc., 7.88%, 08/15/25		25		23,750
EnLink Midstream Partners LP, 4.85%, 07/15/26		50		50,375
Genesis Energy LP/Genesis Energy Finance Corp., 6.50%, 10/01/25		50		48,875
Gulfport Energy Corp., 6.38%, 05/15/25		25		19,344
Hilcorp Energy I LP/Hilcorp Finance Co., 6.25%, 11/01/28(b)		20		20,100
Kinder Morgan Energy Partners LP, 5.00%, 10/01/21		400		419,437
Matador Resources Co., 5.88%, 09/15/26		10		10,100
MEG Energy Corp., 6.50%, 01/15/25(b)		50		50,250
Murphy Oil Corp., 5.75%, 08/15/25		75		77,730
Nabors Industries, Inc.:
5.50%, 01/15/23		50		46,750
5.75%, 02/01/25		50		44,312
NGL Energy Partners LP/NGL Energy Finance Corp.:
7.50%, 11/01/23		50		52,250
7.50%, 04/15/26(b)		135		139,725
NuStar Logistics LP:
6.00%, 06/01/26		45		46,575
5.63%, 04/28/27		50		50,375
Oasis Petroleum, Inc., 6.25%, 05/01/26(b)		10		9,675
ONEOK, Inc.:
4.55%, 07/15/28		80		86,839
4.35%, 03/15/29		150		160,314
PBF Holding Co. LLC/PBF Finance Corp., 7.25%, 06/15/25		50		52,375
Precision Drilling Corp., 7.13%, 01/15/26(b)		25		24,188
QEP Resources, Inc., 5.25%, 05/01/23		100		96,250
Rowan Cos., Inc., 7.38%, 06/15/25		25		19,375
Sabine Pass Liquefaction LLC:
5.75%, 05/15/24		100		111,209
4.20%, 03/15/28		265		278,970
SESI LLC, 7.13%, 12/15/21		50		34,875
Shell International Finance BV, 3.88%, 11/13/28		85		93,016

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

	Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
SM Energy Co., 6.63%, 01/15/27	$	5	$	4,625
Southwestern Energy Co., 6.20%, 01/23/25		100		91,250
Sunoco LP/Sunoco Finance Corp.:
5.50%, 02/15/26		100		104,125
5.88%, 03/15/28		50		51,812
Targa Resources Partners LP/Targa Resources Partners Finance Corp., 5.88%, 04/15/26		35		37,100
Transocean Guardian Ltd., 5.88%, 01/15/24(b)		5		4,802
W&T Offshore, Inc., 2018 Term Loan, 9.75%, 11/01/23(b)		50		47,875
				3,570,504
Paper & Forest Products — 0.0%
Norbord, Inc., 5.75%, 07/15/27(b)		15		15,094
Personal Products — 0.1%
Avon International Operations, Inc., 7.88%, 08/15/22(b)		25		25,938
Coty, Inc., 6.50%, 04/15/26(b)		100		97,375
				123,313
Pharmaceuticals — 1.2%
AbbVie, Inc., 3.38%, 11/14/21		300		305,084
AstraZeneca PLC, 3.50%, 08/17/23		100		104,294
Bausch Health Americas, Inc.(b):
8.50%, 01/31/27		25		27,488
9.25%, 04/01/26		50		55,940
Bausch Health Cos., Inc.(b):
7.00%, 03/15/24		100		106,260
6.13%, 04/15/25		150		153,183
5.50%, 11/01/25		50		52,125
5.75%, 08/15/27		50		52,549
Catalent Pharma Solutions, Inc., 5.00%, 07/15/27(b)		10		10,175
Novartis Capital Corp., 2.40%, 09/21/22		300		302,673
Par Pharmaceutical, Inc., 7.50%, 04/01/27(b)		75		73,688
Zoetis, Inc.:
3.00%, 09/12/27		100		99,907
3.90%, 08/20/28		150		159,846
				1,503,212
Real Estate Management & Development — 0.0%
Howard Hughes Corp., 5.38%, 03/15/25(b)		25		25,830
Kennedy-Wilson, Inc., 5.88%, 04/01/24		25		25,500
				51,330
Road & Rail — 0.3%
Hertz Corp., 7.63%, 06/01/22(b)		50		51,937
Kenan Advantage Group, Inc., 7.88%, 07/31/23(b)		15		13,500
Ryder System, Inc., 2.88%, 06/01/22		30		30,346
Union Pacific Corp., 2.95%, 03/01/22		300		305,501
				401,284
Semiconductors & Semiconductor Equipment — 1.0%
Analog Devices, Inc., 2.50%, 12/05/21		25		25,072
Broadcom Corp./Broadcom Cayman Finance Ltd.:
2.38%, 01/15/20		75		74,870
3.00%, 01/15/22		75		75,195
3.63%, 01/15/24		40		40,379
Broadcom, Inc.(b):
3.13%, 10/15/22		500		503,148
3.63%, 10/15/24		100		100,497
4.25%, 04/15/26		100		101,487
NXP BV/NXP Funding LLC/NXP USA, Inc., 4.30%, 06/18/29(b)		45		46,390
Qorvo, Inc., 5.50%, 07/15/26		110		116,413
QUALCOMM, Inc., 3.25%, 05/20/27		100		102,009
Sensata Technologies BV, 5.00%, 10/01/25(b)		25		26,062
				1,211,522

	Par (000)		Value
Software — 0.4%
CA, Inc., 3.60%, 08/15/22	$	25	$	25,390
CDK Global, Inc., 5.88%, 06/15/26		60		63,450
Citrix Systems, Inc., 4.50%, 12/01/27		50		51,736
Infor US, Inc., 6.50%, 05/15/22		30		30,528
MSCI, Inc., 5.38%, 05/15/27(b)		150		160,500
Nuance Communications, Inc., 5.63%, 12/15/26		100		104,280
SS&C Technologies, Inc., 5.50%, 09/30/27(b)		20		20,750
				456,634
Specialty Retail — 0.3%
L Brands, Inc.:
5.63%, 10/15/23		25		25,925
5.25%, 02/01/28		50		45,812
7.50%, 06/15/29		50		49,995
6.88%, 11/01/35		25		22,234
Michaels Stores, Inc., 8.00%, 07/15/27(b)(f)		35		34,839
O’Reilly Automotive, Inc., 3.60%, 09/01/27		100		102,820
PetSmart, Inc., 5.88%, 06/01/25(b)		25		24,250
Staples, Inc., 7.50%, 04/15/26(b)		100		99,411
				405,286
Technology Hardware, Storage & Peripherals — 0.7%
Apple, Inc., 3.35%, 02/09/27		65		68,252
Dell International LLC/EMC Corp.(b):
4.00%, 07/15/24		500		513,080
6.02%, 06/15/26		100		110,318
4.90%, 10/01/26		100		104,336
				795,986
Textiles, Apparel & Luxury Goods — 0.0%
Hanesbrands, Inc., 4.88%, 05/15/26(b)		50		51,870
Tobacco — 0.9%
Altria Group, Inc.:
4.00%, 01/31/24		50		52,398
3.80%, 02/14/24		35		36,485
2.63%, 09/16/26		50		47,960
BAT Capital Corp., 2.76%, 08/15/22		75		75,114
Philip Morris International, Inc.:
2.88%, 05/01/24		500		507,462
3.25%, 11/10/24		25		25,890
3.13%, 08/17/27		50		51,176
3.38%, 08/15/29		150		154,532
Pyxus International, Inc., 9.88%, 07/15/21		50		43,000
Vector Group Ltd., 6.13%, 02/01/25(b)		60		55,607
				1,049,624
Utilities — 0.1%
Vistra Operations Co. LLC, 5.63%, 02/15/27(b)		100		105,875
Water Utilities — 0.0%
Aqua America, Inc., 3.57%, 05/01/29		55		57,156
Wireless Telecommunication Services — 1.1%
American Tower Corp.:
3.30%, 02/15/21		50		50,621
3.45%, 09/15/21		100		102,149
3.50%, 01/31/23		75		77,425
3.55%, 07/15/27		180		183,474
3.95%, 03/15/29		200		209,352
Crown Castle International Corp.:
3.20%, 09/01/24		30		30,636
3.65%, 09/01/27		40		41,192
Equinix, Inc.:
5.88%, 01/15/26		50		52,938
5.38%, 05/15/27		50		53,598
Intelsat Connect Finance SA, 9.50%, 02/15/23(b)		10		8,850

SCHEDULE OF INVESTMENTS 15

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

	Par (000)		Value
Wireless Telecommunication Services (continued)
Sprint Capital Corp., 6.88%, 11/15/28	$	50	$	51,390
Sprint Communications, Inc., 6.00%, 11/15/22		25		26,063
Sprint Corp.:
7.25%, 09/15/21		25		26,563
7.88%, 09/15/23		50		54,312
7.63%, 03/01/26		25		26,650
T-Mobile USA, Inc.:
6.38%, 03/01/25		50		51,925
6.50%, 01/15/26		50		54,053
4.50%, 02/01/26		50		51,188
4.75%, 02/01/28		125		128,606
Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC, 6.00%, 04/15/23(b)		15		14,250
				1,295,235
Total Corporate Bonds — 42.7% (Cost — $50,766,218)				52,025,493
Non-Agency Mortgage-Backed Securities — 2.3%
Collateralized Mortgage Obligations — 2.1%
Connecticut Avenue Securities Trust(b)(d):
Series 2018-R07, Class 1M2, 4.80%, 04/25/31		500		506,000
Series 2019-R01, Class 2M2, 4.85%, 07/25/31		625		632,514
Series 2019-R02, Class 1M1, 3.25%, 08/25/31		175		174,986
Series 2019-R02, Class 1M2, 4.70%, 08/25/31		650		655,599
Series 2019-R03, Class 1M2, 4.55%, 09/25/31		200		201,102
STACR Trust(b)(d):
Series 2018-DNA3, Class M1, 3.15%, 09/25/48		114		113,742
Series 2018-HRP1, Class M2, 4.05%, 04/25/43		246		247,642
				2,531,585
Commercial Mortgage-Backed Securities — 0.2%
WFRBS Commercial Mortgage Trust, Series 2014-C24, Class AS, 3.93%, 11/15/47		280		291,743
Total Non-Agency Mortgage-Backed Securities — 2.3% (Cost — $2,817,242)				2,823,328
U.S. Government Sponsored Agency Securities — 48.3%
Collateralized Mortgage Obligations — 5.5%
Connecticut Avenue Securities Trust, Series 2019-R03, Class 1M1, 3.15%, 09/25/31(b)(d)		236		235,829
Fannie Mae Connecticut Avenue Securities:
Series 2018-C06, Class 1M1, 2.95%, 03/25/31(d)		44		44,451
Series 2018-C06, Class 2M1, 2.95%, 03/25/31(d)		38		37,636
Series 2018-C01, Class 1M1, 3.00%, 07/25/30(d)		267		266,521
Series 2018-C02, Class 2M1, 3.05%, 08/25/30(d)		67		67,393
Series 2018-C03, Class 1M1, 3.08%, 10/25/30(d)		324		324,522
Series 2018-C05, Class 1M1, 3.12%, 01/25/31(d)		182		182,523
Series 2017-C06, Class 1M1, 3.15%, 02/25/30(d)		20		20,331
Series 2017-C04, Class 2M1, (1 mo. LIBOR US + 0.85%), 3.25%, 11/25/29(g)		54		54,292
Series 2017-C01, Class 1M1, (1 mo. LIBOR US + 1.30%), 3.70%, 07/25/29(g)		36		35,786
Series 2016-C04, Class 1M1, (1 mo. LIBOR US + 1.45%), 3.85%, 01/25/29(g)		34		34,341
Series 2017-C05, Class 1M2A, (1 mo. LIBOR US + 2.20%), 4.60%, 01/25/30(g)		140		141,664
Series 2018-C02, Class 2M2, 4.60%, 08/25/30(d)		325		326,310
Series 2018-C01, Class 1M2, 4.65%, 07/25/30(d)		221		222,832
Series 2017-C07, Class 1M2, 4.80%, 05/28/30(d)		100		101,627
Series 2017-C07, Class 2M2A, 4.90%, 05/25/30(d)		100		102,789
Series 2017-C07, Class 2M2, 4.90%, 05/25/30(d)		100		101,696
Series 2014-C02, Class 2M2, (1 mo. LIBOR US + 2.60%), 5.00%, 05/25/24(g)		107		109,721

	Par (000)		Value
Collateralized Mortgage Obligations (continued)
Series 2017-C06, Class 1M2A, 5.05%, 02/25/30(d)	$	276	$	281,536
Series 2017-C06, Class 1M2, 5.05%, 02/25/30(d)		100		102,783
Series 2017-C06, Class 2M2, 5.20%, 02/25/30(d)		100		102,952
Series 2014-C03, Class 2M2, (1 mo. LIBOR US + 2.90%), 5.30%, 07/25/24(g)		130		135,855
Series 2017-C01, Class 1M2A, (1 mo. LIBOR US + 3.55%), 5.95%, 07/25/29(g)		100		104,094
Series 2017-C05, Class 1B1, (1 mo. LIBOR US + 3.60%), 6.00%, 01/25/30(g)		150		155,443
Series 2018-C06, Class 1B1, 6.15%, 03/25/31(d)		186		188,835
Series 2015-C02, Class 1M2, (1 mo. LIBOR US + 4.00%), 6.40%, 05/25/25(g)		62		65,582
Series 2015-C02, Class 2M2, (1 mo. LIBOR US + 4.00%), 6.40%, 05/25/25(g)		55		56,937
Series 2018-C05, Class 1B1, 6.65%, 01/25/31(d)		100		105,467
Series 2015-C01, Class 1M2, (1 mo. LIBOR US + 4.30%), 6.70%, 02/25/25(g)		58		62,283
Series 2014-C01, Class M2, (1 mo. LIBOR US + 4.40%), 6.80%, 01/25/24(g)		100		109,308
Series 2016-C05, Class 2M2, (1 mo. LIBOR US + 4.45%), 6.85%, 01/25/29(g)		149		158,806
Series 2018-C04, Class 2B1, 6.90%, 12/25/30(d)		250		265,784
Series 2014-C04, Class 1M2, (1 mo. LIBOR US + 4.90%), 7.30%, 11/25/24(g)		30		32,498
Series 2014-C04, Class 1M2, (1 mo. LIBOR US + 5.00%), 7.40%, 11/25/24(g)		73		79,811
Series 2015-C03, Class 1M2, (1 mo. LIBOR US + 5.00%), 7.40%, 07/25/25(g)		66		72,627
Series 2015-C04, Class 1M2, (1 mo. LIBOR US + 5.70%), 8.10%, 04/25/28(g)		74		82,331
Freddie Mac STACR Trust, Series 2019-HQA2(b)(d):
Class M1, 3.10%, 04/25/49		200		200,063
Class M2, 4.45%, 04/25/49		250		251,165
Freddie Mac Structured Agency Credit Risk Debt Notes:
Series 2019-DNA1, Class M1, 3.30%, 01/25/49(b)(d)		150		150,366
Series 2018-DNA1, Class M2, 4.20%, 07/25/30(d)		100		99,475
Series 2019-HQA1, Class M2, 4.75%, 02/25/49(b)(d)		600		605,497
Series 2017-DNA3, Class M2, 4.90%, 03/25/30(d)		250		255,608
Series 2018-DNA1, Class B1, 5.55%, 07/25/30(d)		75		74,689
Series 2015-DN1, Class M3, (1 mo. LIBOR US + 4.15%), 6.55%, 01/25/25(g)		171		179,506
Series 2017-DNA3, Class B1, 6.85%, 03/25/30(d)		250		270,843
				6,660,408
Mortgage-Backed Securities — 42.8%
Fannie Mae Connecticut Avenue Securities, Series 2019-R04(b)(g):
Class 2M1, (1 mo. LIBOR US + 0.75%), 3.15%, 06/25/39		1,070		1,070,000
Class 2M2, (1 mo. LIBOR US + 2.10%), 4.50%, 06/25/39		500		501,211
Fannie Mae Mortgage-Backed Securities(h):
2.50%, 07/01/49		50		49,648
3.00%, 12/01/35 - 07/01/49		1,791		1,807,777
3.50%, 01/01/46 - 07/01/49(f)		7,161		7,335,670
4.00%, 07/01/34 - 02/01/57(f)		7,840		8,139,522
4.50%, 07/01/34 - 07/01/49(f)		4,398		4,602,190
5.00%, 02/01/41 - 07/01/49(f)		2,352		2,500,132
5.50%, 07/01/49		550		586,626
Freddie Mac Mortgage-Backed Securities:
3.00%, 08/01/46 - 06/01/49		501		505,368
3.50%, 10/01/44 - 07/01/49(f)		5,914		6,119,162
4.00%, 10/01/46 - 06/01/49(f)		1,426		1,481,481
4.50%, 05/01/42 - 01/01/49		543		573,708
5.00%, 04/01/49		225		239,008

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund (Percentages shown are based on Net Assets)

	Par (000)		Value
Mortgage-Backed Securities (continued)
Ginnie Mae Mortgage-Backed Securities(h):
3.00%, 05/20/45 - 07/01/49	$	402	$	410,939
3.50%, 06/15/43 - 07/01/49(f)		5,323		5,501,582
4.00%, 11/20/47 - 07/01/49		4,450		4,619,104
4.50%, 06/20/48 - 07/01/49		3,894		4,061,378
5.00%, 04/20/49 - 07/01/49		1,982		2,075,552
				52,180,058
Total U.S. Government Sponsored Agency Securities — 48.3% (Cost — $58,567,297)				58,840,466
U.S. Treasury Obligations — 5.9%
U.S. Treasury Bonds, 2.88%, 05/15/49		5,250		5,632,265
U.S. Treasury Notes, 2.38%, 05/15/29		1,500		1,550,098
Total U.S. Treasury Obligations — 5.9% (Cost — $7,015,927)				7,182,363
Total Long-Term Investments — 121.2% (Cost — $145,354,119)				147,680,458
	Shares
Short-Term Securities — 8.2%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 2.26%(i)(j)		9,943,830		9,943,830
Total Short-Term Securities — 8.2% (Cost — $9,943,830)				9,943,830
Total Investments Before TBA Sale Commitments — 129.4% (Cost — $155,297,949)				157,624,288

	Par (000)		Value
TBA Sale Commitments — (8.6%)
Mortgage-Backed Securities — (8.6%)
Fannie Mae Mortgage-Backed Securities(h):
3.50%, 07/01/49	$	5,320	$	(5,439,077	)
4.00%, 07/01/49		2,722		(2,813,283	)
5.00%, 07/01/49		216		(228,323	)
Ginnie Mae Mortgage-Backed Securities(h):
3.50%, 07/01/49		1,193		(1,232,378	)
4.00%, 07/01/49		782		(810,653	)
Total TBA Sale Commitments — (8.6)% (Proceeds — $10,496,650)				(10,523,714	)
Total Investments, Net of TBA Sale Commitments — 120.8% (Cost — $144,801,299)				147,100,574
Liabilities in Excess of Other Assets — (20.8)%				(25,319,444	)
Net Assets — 100.0%			$	121,781,130

^(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)  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)  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)  When-issued security.

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

^(h)  Represents or includes a TBA transaction.

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

^(l)  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		5,039,873		4,903,957		9,943,830	$	9,943,830	$	133,437	$	—	$	—

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

SCHEDULE OF INVESTMENTS 17

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy 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
10-Year Australian Treasury Bond		18		09/16/19	$	1,815	$	15,141
10-Year U.S. Treasury Note		89		09/19/19		11,389		166,673
Long U.S. Treasury Bond		12		09/19/19		1,867		59,572
Long Gilt		5		09/26/19		827		72
5-Year U.S. Treasury Note		9		09/30/19		1,063		(46	)
								241,412
Short Contracts
Euro Bund Futures		29		09/06/19		5,696		(50,134	)
10-Year Canada Bond		2		09/19/19		218		(64	)
10-Year U.S. Ultra Long Treasury		7		09/19/19		967		(18,542	)
U.S. Ultra Bond		6		09/19/19		1,065		(2,634	)
S&P 500 E-Mini Index		26		09/20/19		3,827		(10,342	)
2-Year U.S. Treasury Note		11		09/30/19		2,367		(6,284	)
								(88,000	)
							$	153,412

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	67,230	CAD	90,000	Citibank N.A.		09/18/19	$	(1,593	)
USD	7,489	CAD	10,000	Royal Bank of Canada		09/18/19		(158	)
USD	135,565	EUR	120,000	Citibank N.A.		09/18/19		(1,721	)
USD	45,139	EUR	40,000	JPMorgan Chase Bank N.A.		09/18/19		(623	)
USD	6,392	HKD	50,000	Citibank N.A.		09/18/19		(11	)
USD	25,556	HKD	200,000	Citibank N.A.		09/18/19		(56	)
USD	6,400	HKD	50,000	Standard Chartered Bank		09/18/19		(3	)
USD	43,833	SGD	60,000	Citibank N.A.		09/18/19		(565	)
							$	(4,730	)

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		B	USD	1,212	$	(93,543	)	$	(91,030	)	$	(2,513	)

^(a)  Using S&P Global 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.

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund		Effective Date (a)		Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
3-Month JIBAR, 7.03%	Quarterly	7.77%	Quarterly		09/18/19		09/18/24	ZAR	2,630		$	5,415		$	3	$	5,412
2.32%	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	3,050			(12,044	)		6		(12,050	)
(0.02)	Semi-Annual	6-Month JPY LIBOR, (0.02)%	Semi-Annual		09/18/19		09/18/24	JPY	5,000			(235	)		1		(236	)
6-Month BBR, 1.22%	Semi-Annual	1.92	Semi-Annual		09/18/19		09/18/24	AUD	110			2,615			1		2,614
2.07	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	790			(1,921	)		2		(1,923	)
2.11	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	304			(818	)		1		(819	)
2.11	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	304			(822	)		1		(823	)
6-Month BBR, 1.22%	Semi-Annual	1.75	Semi-Annual		09/18/19		09/18/24	AUD	220			3,997			3		3,994
2.15	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	192			(566	)		—		(566	)
2.13	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	1,230			(3,441	)		2		(3,443	)
2.14	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	760			(2,175	)		1		(2,176	)
6-Month BBR, 1.22%	Semi-Annual	1.68	Semi-Annual		09/18/19		09/18/24	AUD	160			2,530			2		2,528
3-Month CAD BA, 1.97%	Quarterly	1.93	Quarterly		09/18/19		09/18/24	CAD	70			577			1		576
3-Month LIBOR, 2.32%	Quarterly	2.31	Semi-Annual		09/18/19		09/18/24	USD	210			5,873			4		5,869
2.16	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	780			(2,320	)		2		(2,322	)
6-Month BBR, 1.22%	Semi-Annual	1.63	Semi-Annual		09/18/19		09/18/24	AUD	150			2,114			2		2,112
0.08	Annual	6-Month EURIBOR, (0.31)%	Semi-Annual		09/18/19		09/18/24	EUR	80			(1,351	)		26		(1,377	)
6-Month BBR, 1.22%	Semi-Annual	1.64	Semi-Annual		09/18/19		09/18/24	AUD	230			3,256			3		3,253
0.10	Annual	6-Month EURIBOR, (0.31)%	Semi-Annual		09/18/19		09/18/24	EUR	70	��		(1,235	)		1		(1,236	)
0.06	Annual	6-Month EURIBOR, (0.31)%	Semi-Annual		09/18/19		09/18/24	EUR	280			(4,302	)		5		(4,307	)
3-Month JIBAR, 7.03%	Quarterly	7.48	Quarterly		09/18/19		09/18/24	ZAR	4,030			4,779			4		4,775
0.02	Annual	6-Month EURIBOR, (0.31)%	Semi-Annual		09/18/19		09/18/24	EUR	240			(3,229	)		5		(3,234	)
6-Month GBP LIBOR, 0.85%	Semi-Annual	1.13	Semi-Annual		09/18/19		09/18/24	GBP	50			700			1		699
3-Month JIBAR, 7.03%	Quarterly	7.46	Quarterly		09/18/19		09/18/24	ZAR	4,190			4,784			4		4,780
0.02	Annual	6-Month EURIBOR, (0.31)%	Semi-Annual		09/18/19		09/18/24	EUR	610			(8,245	)		12		(8,257	)
3-Month LIBOR, 2.32%	Quarterly	2.19%	Semi-Annual		09/18/19		09/18/24	USD	720			15,784			13		15,771
1.96%	Semi-Annual	6-Month SIBOR, 1.74%	Semi-Annual		09/18/19		09/18/24	SGD	300			(2,623	)		3		(2,626	)
2.02	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	3,240			(6,889	)		6		(6,895	)
0.01	Annual	6-Month EURIBOR, (0.31)%	Semi-Annual		09/18/19		09/18/24	EUR	640			(7,984	)		12		(7,996	)
3-Month LIBOR, 2.32%	Quarterly	2.14	Semi-Annual		09/18/19		09/18/24	USD	700			13,673			12		13,661
6-Month GBP LIBOR, 0.85%	Semi-Annual	1.08	Semi-Annual		09/18/19		09/18/24	GBP	330			3,591			7		3,584
3-Month JIBAR, 7.03%	Quarterly	7.49	Quarterly		09/18/19		09/18/24	ZAR	8,190			9,953			9		9,944
6-Month BBR, 1.22%	Semi-Annual	1.59	Semi-Annual		09/18/19		09/18/24	AUD	900			11,295			11		11,284
2.03	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	5,667			(12,396	)		11		(12,407	)
1.95	Semi-Annual	6-Month SIBOR, 1.74%	Semi-Annual		09/18/19		09/18/24	SGD	720			(5,811	)		8		(5,819	)
2.03	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	2,043			(4,500	)		4		(4,504	)
3-Month JIBAR, 7.03%	Quarterly	7.38	Quarterly		09/18/19		09/18/24	ZAR	2,200			1,995			2		1,993
1.87	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	1,470			(1,752	)		3		(1,755	)
1.96	Annual	6-Month WIBOR, 1.69%	Semi-Annual		09/18/19		09/18/24	PLN	1,710			(1,328	)		7		(1,335	)
1.84	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	2,080			(2,192	)		4		(2,196	)
6-Month BBR, 1.22%	Semi-Annual	1.40	Semi-Annual		09/18/19		09/18/24	AUD	350			2,178			4		2,174
(0.13)	Annual	6-Month EURIBOR, (0.31)%	Semi-Annual		09/18/19		09/18/24	EUR	30			(141	)		1		(142	)
3-Month CAD BA, 1.97%	Quarterly	1.66	Quarterly		09/18/19		09/18/24	CAD	180			(296	)		2		(298	)
1.94	Annual	6-Month WIBOR, 1.69%	Semi-Annual		09/18/19		09/18/24	PLN	1,005			(557	)		4		(561	)
1.98	Annual	6-Month WIBOR, 1.69%	Semi-Annual		09/18/19		09/18/24	PLN	1,005			(1,068	)		4		(1,072	)
6-Month BBR, 1.22%	Semi-Annual	1.30	Semi-Annual		09/18/19		09/18/24	AUD	430			1,208			5		1,203
1.83	Annual	6-Month WIBOR, 1.69%	Semi-Annual		09/18/19		09/18/24	PLN	1,120			1,015			4		1,011
6-Month BBR, 1.22%	Semi-Annual	1.19	Semi-Annual		09/18/19		09/18/24	AUD	400			(304	)		5		(309	)
1.66	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	1,840			147			4		143
3-Month JIBAR, 7.03%	Quarterly	6.95	Quarterly		09/18/19		09/18/24	ZAR	9,760			(3,461	)		10		(3,471	)
1.81%	Annual	6-Month WIBOR, 1.69%	Semi-Annual		09/18/19		09/18/24	PLN	1,239			1,399			5		1,394
1.83	Annual	6-Month WIBOR, 1.69%	Semi-Annual		09/18/19		09/18/24	PLN	531			481			2		479
6-Month BBR, 1.22%	Semi-Annual	1.15%	Semi-Annual		09/18/19		09/18/24	AUD	230			(513	)		3		(516	)
1.65	Quarterly	3-Month HIBOR, 2.46%	Quarterly		09/18/19		09/18/24	HKD	1,710			214			3		211
1.86	Annual	6-Month WIBOR, 1.69%	Semi-Annual		09/18/19		09/18/24	PLN	1,120			560			4		556
											$	5,614		$	265	$	5,349

^(a)  Forward swap.

SCHEDULE OF INVESTMENTS 19

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

OTC Interest Rate Swaps

Paid by the Fund		Received by the Fund			Counterparty	Effective Date (a)		Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate		Frequency
3-Month KRW CDC, 1.70%	Quarterly		1.61%	Quarterly	Deutsche Bank AG		09/18/19		09/18/24		KRW	287,180	$	2,591		$	—	$	2,591
3-Month KRW CDC, 1.70%	Quarterly		1.55	Quarterly	Citibank N.A.		09/18/19		09/18/24		KRW	291,560		1,865			—		1,865
3-Month KRW CDC, 1.70%	Quarterly		1.49	Quarterly	Citibank N.A.		09/18/19		09/18/24		KRW	167,050		606			—		606
3-Month KRW CDC, 1.70%	Quarterly		1.48	Quarterly	Bank of America N.A.		09/18/19		09/18/24		KRW	167,075		579			—		579
3-Month KRW CDC, 1.70%	Quarterly		1.48	Quarterly	Citibank N.A.		09/18/19		09/18/24		KRW	167,075		572			—		572
3-Month KRW CDC, 1.70%	Quarterly		1.44	Quarterly	Citibank N.A.		09/18/19		09/18/24		KRW	212,339		395			—		395
3-Month KRW CDC, 1.70%	Quarterly		1.43	Quarterly	Citibank N.A.		09/18/19		09/18/24		KRW	188,746		272			—		272
3-Month KRW CDC, 1.70%	Quarterly		1.43	Quarterly	Deutsche Bank AG		09/18/19		09/18/24		KRW	188,746		233			—		233
3-Month KRW CDC, 1.70%	Quarterly		1.43	Quarterly	Bank of America N.A.		09/18/19		09/18/24		KRW	122,044		138			—		138
3-Month KRW CDC, 1.70%	Quarterly		1.43	Quarterly	Bank of America N.A.		09/18/19		09/18/24		KRW	141,943		190			—		190
3-Month KRW CDC, 1.70%	Quarterly		1.43	Quarterly	JPMorgan Chase Bank N.A.		09/18/19		09/18/24		KRW	142,226		208			—		208
3-Month KRW CDC, 1.70%	Quarterly		1.43	Quarterly	Bank of America N.A.		09/18/19		09/18/24		KRW	141,801		196			—		196
3-Month KRW CDC, 1.70%	Quarterly		1.43	Quarterly	JPMorgan Chase Bank N.A.		09/18/19		09/18/24		KRW	141,801		208			—		208
3-Month KRW CDC, 1.70%	Quarterly		1.28	Quarterly	Deutsche Bank AG		09/18/19		09/18/24		KRW	142,710		(730	)		—		(730	)
3-Month KRW CDC, 1.70%	Quarterly		1.37	Quarterly	Deutsche Bank AG		09/18/19		09/18/24		KRW	291,780		(368	)		—		(368	)
3-Month KRW CDC, 1.70%	Quarterly		1.43	Quarterly	Morgan Stanley & Co. International PLC		09/18/19		09/18/24		KRW	88,376		115			—		115
													$	7,070		$	—	$	7,070

^(a)  Forward swap.

OTC Total Return Swaps^(a)

Reference Entity	Counterparty	Expiration Date		Net Notional Amount		Unrealized Appreciation (Depreciation)			Net Value of Reference Entities		Gross Notional Amount Net Asset Percentage
Equity Securities Long/Short:	Bank of America N.A.		02/17/23	$	418,064	$	(142,841	)(a)		364,963		19.7	%
	Bank of America N.A.		02/17/23		1,885,560		59,446	(b)		1,965,619		13.6
	Morgan Stanley & Co. International PLC		02/27/23		81,112		72,604	(c)		175,913		32.7
	Morgan Stanley & Co. International PLC		02/27/23		120,292		233,863	(d)		362,614		36.2
				$	2,505,028	$	223,072		$	2,869,109

^(a)  In regards to total return swaps with multiple financing rate benchmarks, the Fund receives or pays the total return on a portfolio of long and short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark, plus or minus a spread in a range of 15-1,753 basis points. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. The following are the specified benchmarks used in determining the variable rate of interest:

ICE LIBOR USD 1 Week

US Federal Funds Effective Rate (continuous series)

^(a)  Amount includes $(89,740) of net dividends and financing fees.

^(b)  Amount includes $(20,613) of net dividends and financing fees.

^(c)  Amount includes $(22,197) of net dividends and financing fees.

^(d)  Amount includes $(8,459) of net dividends and financing fees.

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Bank of America N.A. as of June 30, 2019 expiration date 02/17/23:

Security	Shares		Value		% of Basket Value
Reference Entity — Long
Aerospace & Defense
Lockheed Martin Corp.		588	$	213,761		58.6	%
Raytheon Co.		759		131,975		36.1
				345,736
Airlines
Southwest Airlines Co.		4,041		205,202		56.2
Auto Components
BorgWarner, Inc.		2,834		118,971		32.6
Goodyear Tire & Rubber Co.		9,656		147,737		40.5
				266,708
Beverages
Coca-Cola Co.		3,086		157,139		43.1
Biotechnology
Amgen, Inc.		991		182,622		50.0
Building Products
Johnson Controls International PLC		2,445		101,003		27.7
Chemicals
Air Products & Chemicals, Inc.		908		205,544		56.3
Eastman Chemical Co.		342		26,618		7.3
Olin Corp.		8,474		185,665		50.9
				417,827
Commercial Services & Supplies
Republic Services, Inc.		2,075		179,778		49.2
Waste Management, Inc.		1,597		184,246		50.5
				364,024
Communications Equipment
Cisco Systems, Inc.		2,984		163,314		44.8
Consumer Finance
American Express Co.		1,026		126,649		34.7
Containers & Packaging
Packaging Corp. of America		2,699		257,269		70.5
Westrock Co.		5,099		185,960		50.9
				443,229
Diversified Telecommunication Services
Verizon Communications, Inc.		2,764		157,907		43.3
Electric Utilities
Duke Energy Corp.		1,862		164,303		45.0
Exelon Corp.		3,401		163,044		44.7
				327,347
Electrical Equipment
Eaton Corp. PLC		1,780		148,238		40.6
Energy Equipment & Services
Halliburton Co.		6,367		144,786		39.7
Entertainment
Viacom, Inc., Class B		5,945		177,577		48.7
Equity Real Estate Investment Trusts (REITs)
AvalonBay Communities, Inc.		603		122,518		33.6
Boston Properties, Inc.		1,201		154,929		42.4
Simon Property Group, Inc.		1,171		187,079		51.3
				464,526

Security	Shares		Value		% of Basket Value
Food & Staples Retailing
Walmart, Inc.		1,816	$	200,650		55.0	%
Food Products
Mondelez International, Inc., Class A		256		13,798		3.8
Health Care Equipment & Supplies
Baxter International, Inc.		1,689		138,329		37.9
Medtronic PLC		387		37,690		10.3
				176,019
Health Care Providers & Services
Humana, Inc.		394		104,528		28.7
Universal Health Services, Inc., Class B		85		11,083		3.0
				115,611
Hotels, Restaurants & Leisure
Boyd Gaming Corp.		4,017		108,218		29.6
McDonald’s Corp.		1,077		223,650		61.3
MGM Resorts International		6,485		185,277		50.8
Yum! Brands, Inc.		1,957		216,581		59.3
				733,726
Household Durables
Lennar Corp., Class A		3,519		170,531		46.7
PulteGroup, Inc.		7,426		234,810		64.3
Toll Brothers, Inc.		4,473		163,801		44.9
				569,142
Household Products
Colgate-Palmolive Co.		1,698		121,696		33.4
Kimberly-Clark Corp.		1,348		179,661		49.2
Procter & Gamble Co.		1,657		181,690		49.8
				483,047
Independent Power and Renewable Electricity Producers
AES Corp.		3,673		61,560		16.9
NRG Energy, Inc.		5,020		176,302		48.3
				237,862
Industrial Conglomerates
3M Co.		185		32,068		8.8
Insurance
Allstate Corp.		1,978		201,143		55.1
Aon PLC		1,174		226,558		62.1
Hartford Financial Services Group, Inc.		4,098		228,341		62.6
Loews Corp.		1,942		106,169		29.1
MetLife, Inc.		4,415		219,293		60.1
Unum Group		1,949		65,389		17.9
				1,046,893
Machinery
Caterpillar, Inc.		1,407		191,760		52.5
Media
CBS Corp., Class B		4,076		203,393		55.7
Omnicom Group, Inc.		1,072		87,850		24.1
TEGNA, Inc.		10,571		160,151		43.9
Walt Disney Co.		1,577		220,212		60.3
				671,606
Metals & Mining
Barrick Gold Corp.		628		9,904		2.7
Newmont Goldcorp Corp.		1,434		55,166		15.1
Teck Resources Ltd., Class B		5,558		128,167		35.1
				193,237

SCHEDULE OF INVESTMENTS 21

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Security	Shares			Value			% of Basket Value
Multi-Utilities
CenterPoint Energy, Inc.		4,100		$	117,383			32.1	%
Dominion Energy, Inc.		2,434			188,197			51.6
					305,580
Multiline Retail
Macy’s, Inc.		3,794			81,419			22.3
Oil, Gas & Consumable Fuels
Apache Corp.		5,268			152,614			41.8
Chevron Corp.		54			6,720			1.8
ConocoPhillips		2,302			140,422			38.5
Devon Energy Corp.		5,303			151,242			41.4
Encana Corp.		29,159			149,586			41.0
Marathon Oil Corp.		9,749			138,533			38.0
Murphy Oil Corp.		6,662			164,218			45.0
Valero Energy Corp.		1,446			123,792			33.9
					1,027,127
Pharmaceuticals
Bausch Health Cos., Inc.		3,457			87,186			23.9
Bristol-Myers Squibb Co.		3,043			138,000			37.8
Johnson & Johnson		1,179			164,211			45.0
					389,397
Road & Rail
Avis Budget Group, Inc.		5,163			181,531			49.7
Canadian National Railway Co.		1,685			155,829			42.7
Norfolk Southern Corp.		963			191,955			52.6
Union Pacific Corp.		1,226			207,329			56.8
					736,644
Semiconductors & Semiconductor Equipment
Intel Corp.		2,414			115,558			31.7
Software
Oracle Corp.		2,402			136,842			37.5
Specialty Retail
AutoZone, Inc.		177			194,606			53.3
Home Depot, Inc.		552			114,800			31.5
					309,406
Technology Hardware, Storage & Peripherals
HP, Inc.		9,744			202,578			55.5
Xerox Corp.		4,857			171,986			47.1
					374,564
Trading Companies & Distributors
HD Supply Holdings, Inc.		2,013			81,083			22.2
United Rentals, Inc.		1,198			158,891			43.6
					239,974
Total Reference Entity — Long					12,575,764
Reference Entity — Short
Aerospace & Defense
Boeing Co.		(519	)		(188,921	)		(51.8	)
Textron, Inc.		(3,984	)		(211,312	)		(57.9	)
					(400,233	)
Air Freight & Logistics
FedEx Corp.		(1,073	)		(176,176	)		(48.3	)
United Parcel Service, Inc., Class B		(1,727	)		(178,347	)		(48.8	)
					(354,523	)
Automobiles
Ford Motor Co.		(20,763	)		(212,406	)		(58.2	)
General Motors Co.		(3,536	)		(136,242	)		(37.3	)

Security	Shares			Value			% of Basket Value
Automobiles (continued)
Tesla, Inc.		(340	)	$	(75,976	)		(20.8	) %
					(424,624	)
Beverages
Constellation Brands, Inc., Class A		(1,028	)		(202,454	)		(55.5	)
Molson Coors Brewing Co., Class B		(2,165	)		(121,240	)		(33.2	)
					(323,694	)
Chemicals
PPG Industries, Inc.		(1,724	)		(201,208	)		(55.2	)
RPM International, Inc.		(3,358	)		(205,207	)		(56.2	)
					(406,415	)
Communications Equipment
Motorola Solutions, Inc.		(645	)		(107,541	)		(29.5	)
Construction Materials
Vulcan Materials Co.		(1,473	)		(202,258	)		(55.4	)
Consumer Finance
Ally Financial, Inc.		(2,566	)		(79,521	)		(21.8	)
Capital One Financial Corp.		(2,326	)		(211,061	)		(57.8	)
OneMain Holdings, Inc.		(2,272	)		(76,816	)		(21.1	)
					(367,398	)
Diversified Financial Services
Berkshire Hathaway, Inc., Class B		(969	)		(206,562	)		(56.6	)
Diversified Telecommunication Services
AT&T, Inc.		(6,211	)		(208,131	)		(57.0	)
Electric Utilities
FirstEnergy Corp.		(4,409	)		(188,749	)		(51.7	)
Electronic Equipment, Instruments & Components
Avnet, Inc.		(4,456	)		(201,723	)		(55.3	)
Energy Equipment & Services
Transocean Ltd.		(10,945	)		(70,157	)		(19.2	)
Equity Real Estate Investment Trusts (REITs)
HCP, Inc.		(4,708	)		(150,562	)		(41.2	)
Host Hotels & Resorts, Inc.		(4,241	)		(77,271	)		(21.2	)
Kimco Realty Corp.		(10,408	)		(192,340	)		(52.7	)
SITE Centers Corp.		(3,528	)		(46,711	)		(12.8	)
					(466,884	)
Food Products
Archer-Daniels-Midland Co.		(2,308	)		(94,166	)		(25.8	)
Campbell Soup Co.		(9,560	)		(383,069	)		(105.0	)
ConAgra Foods, Inc.		(7,003	)		(185,720	)		(50.9	)
General Mills, Inc.		(1,345	)		(70,639	)		(19.3	)
Kellogg Co.		(3,596	)		(192,638	)		(52.8	)
Tyson Foods, Inc., Class A		(1,511	)		(121,998	)		(33.4	)
					(1,048,230	)
Gas Utilities
ONEOK, Inc.		(2,885	)		(198,517	)		(54.4	)
Health Care Equipment & Supplies
Abbott Laboratories		(2,239	)		(188,300	)		(51.6	)
Health Care Providers & Services
AmerisourceBergen Corp.		(2,721	)		(231,993	)		(63.6	)
McKesson Corp.		(1,278	)		(171,750	)		(47.0	)
					(403,743	)
Hotels, Restaurants & Leisure
Marriott International, Inc., Class A		(1,558	)		(218,572	)		(59.9	)
Royal Caribbean Cruises Ltd.		(1,700	)		(206,057	)		(56.5	)
					(424,629	)

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Security	Shares			Value			% of Basket Value
Household Durables
DR Horton, Inc.		(4,709	)	$	(203,099	)		(55.6	) %
MDC Holdings, Inc.		(3,038	)		(99,586	)		(27.3	)
Mohawk Industries, Inc.		(1,599	)		(235,805	)		(64.6	)
Newell Brands, Inc.		(12,084	)		(186,335	)		(51.1	)
					(724,825	)
Industrial Conglomerates
Danaher Corp.		(1,539	)		(219,954	)		(60.2	)
General Electric Co.		(12,471	)		(130,945	)		(35.9	)
					(350,899	)
Insurance
American International Group, Inc.		(4,296	)		(228,891	)		(62.7	)
Lincoln National Corp.		(3,314	)		(213,587	)		(58.6	)
Marsh & McLennan Cos., Inc.		(1,592	)		(158,802	)		(43.5	)
Prudential Financial, Inc.		(1,500	)		(151,500	)		(41.5	)
Travelers Cos., Inc.		(969	)		(144,885	)		(39.7	)
					(897,665	)
Internet & Direct Marketing Retail
Expedia Group, Inc.		(1,638	)		(217,903	)		(59.7	)
IT Services
International Business Machines Corp.		(580	)		(79,982	)		(21.9	)
Leisure Products
Brunswick Corp.		(4,011	)		(184,065	)		(50.4	)
Hasbro, Inc.		(2,147	)		(226,895	)		(62.2	)
Mattel, Inc.		(9,837	)		(110,272	)		(30.2	)
					(521,232	)
Machinery
Deere & Co.		(1,043	)		(172,836	)		(47.4	)
Dover Corp.		(430	)		(43,086	)		(11.8	)
					(215,922	)
Media
Comcast Corp., Class A		(601	)		(25,410	)		(6.9	)
DISH Network Corp., Class A		(5,441	)		(208,989	)		(57.3	)
					(234,399	)
Multi-Utilities
Sempra Energy		(1,547	)		(212,620	)		(58.3	)
Multiline Retail
Nordstrom, Inc.		(4,244	)		(135,214	)		(37.1	)
Oil, Gas & Consumable Fuels
Canadian Natural Resources Ltd.		(6,902	)		(186,147	)		(51.0	)
Chesapeake Energy Corp.		(167,624	)		(326,867	)		(89.6	)
Enbridge, Inc.		(5,374	)		(193,894	)		(53.1	)
Exxon Mobil Corp.		(1,850	)		(141,765	)		(38.8	)
Hess Corp.		(2,681	)		(170,431	)		(46.7	)
Suncor Energy, Inc.		(5,596	)		(174,371	)		(47.8	)
Whiting Petroleum Corp.		(244	)		(4,558	)		(1.2	)
Williams Cos., Inc.		(4,618	)		(129,489	)		(35.5	)
					(1,327,522	)
Road & Rail
Ryder System, Inc.		(630	)		(36,729	)		(10.1	)
Semiconductors & Semiconductor Equipment
Advanced Micro Devices, Inc.		(6,016	)		(182,706	)		(50.1	)
Texas Instruments, Inc.		(1,836	)		(210,699	)		(57.7	)
					(393,405	)
Specialty Retail
TJX Cos., Inc.		(1,782	)		(94,232	)		(25.8	)

Security	Shares			Value			% of Basket Value
Textiles, Apparel & Luxury Goods
VF Corp.		(2,335	)	$	(203,962	)		(55.9	) %
Thrifts & Mortgage Finance
MGIC Investment Corp.		(8,359	)		(109,837	)		(30.1	)
Radian Group, Inc.		(6,729	)		(153,758	)		(42.1	)
					(263,595	)
Tobacco
Altria Group, Inc.		(2,289	)		(108,384	)		(29.7	)
Total Reference Entity — Short					(12,210,801	)
Net Value of Reference Entity — Bank of America N.A.				$	364,963

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Bank of America N.A. as of June 30, 2019 expiration date 02/17/23:

Security	Shares		Value		% of Basket Value
Reference Entity — Long
Aerospace & Defense
Lockheed Martin Corp.		236	$	85,795		4.4	%
Air Freight & Logistics
United Parcel Service, Inc., Class B		655		67,642		3.4
Airlines
Delta Air Lines, Inc.		774		43,924		2.2
Southwest Airlines Co.		1,155		58,651		3.0
United Airlines Holdings, Inc.		940		82,297		4.2
				184,872
Automobiles
Ford Motor Co.		7,845		80,255		4.1
General Motors Co.		525		20,228		1.0
				100,483
Biotechnology
AbbVie, Inc.		2,540		184,709		9.4
Biogen, Inc.		344		80,451		4.1
				265,160
Building Products
Masco Corp.		3,347		131,336		6.7
Owens Corning		1,431		83,284		4.2
				214,620
Capital Markets
MSCI, Inc.		523		124,887		6.4
Chemicals
CF Industries Holdings, Inc.		2,573		120,185		6.1
Eastman Chemical Co.		1,521		118,379		6.0
LyondellBasell Industries NV, Class A		1,842		158,652		8.1
				397,216
Commercial Services & Supplies
Republic Services, Inc.		1,572		136,198		6.9
Waste Management, Inc.		1,201		138,559		7.1
				274,757
Communications Equipment
Cisco Systems, Inc.		2,482		135,840		6.9
Juniper Networks, Inc.		2,297		61,169		3.1
				197,009

SCHEDULE OF INVESTMENTS 23

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Security	Shares		Value		% of Basket Value
Consumer Finance
Capital One Financial Corp.		480	$	43,555		2.2	%
Containers & Packaging
International Paper Co.		1,141		49,428		2.5
Diversified Consumer Services
H&R Block, Inc.		4,142		121,361		6.2
Diversified Financial Services
Voya Financial, Inc.		1,989		109,992		5.6
Diversified Telecommunication Services
Verizon Communications, Inc.		1,412		80,667		4.1
Electric Utilities
Entergy Corp.		1,063		109,415		5.6
Eversource Energy		1,349		102,200		5.2
PPL Corp.		2,445		75,819		3.8
				287,434
Electrical Equipment
Eaton Corp. PLC		1,614		134,414		6.8
Electronic Equipment, Instruments & Components
Flex Ltd.		2,440		23,351		1.2
Energy Equipment & Services
Halliburton Co.		3,455		78,567		4.0
Schlumberger Ltd.		1,837		73,002		3.7
				151,569
Entertainment
Viacom, Inc., Class B		4,456		133,101		6.8
Equity Real Estate Investment Trusts (REITs)
Boston Properties, Inc.		1,055		136,095		6.9
Gaming and Leisure Properties, Inc.		3,677		143,329		7.3
HCP, Inc.		647		20,691		1.0
Kimco Realty Corp.		2,730		50,450		2.6
VEREIT, Inc.		4,948		44,582		2.3
				395,147
Food & Staples Retailing
Kroger Co.		1,198		26,009		1.3
Sysco Corp.		1,236		87,410		4.5
Walgreens Boots Alliance, Inc.		533		29,139		1.5
				142,558
Food Products
Hershey Co.		970		130,009		6.6
Health Care Equipment & Supplies
Abbott Laboratories		288		24,221		1.2
Anthem, Inc.		43		12,135		0.6
Cardinal Health, Inc.		2,304		108,518		5.5
HCA Healthcare, Inc.		306		41,362		2.1
McKesson Corp.		891		119,742		6.1
				305,978
Hotels, Restaurants & Leisure
Hilton Worldwide Holdings, Inc.		1,110		108,491		5.5
McDonald’s Corp.		600		124,596		6.4
Starbucks Corp.		1,341		112,416		5.7
Yum! Brands, Inc.		1,228		135,903		6.9
				481,406
Household Durables
Toll Brothers, Inc.		2,712		99,313		5.1
Household Products
Clorox Co.		874		133,818		6.8
Colgate-Palmolive Co.		1,526		109,368		5.6

Security	Shares		Value		% of Basket Value
Household Products (continued)
Kimberly-Clark Corp.		538	$	71,705		3.7	%
Procter & Gamble Co.		921		100,988		5.1
				415,879
Independent Power and Renewable Electricity Producers
AES Corp.		6,920		115,979		5.9
NRG Energy, Inc.		2,850		100,092		5.1
				216,071
Insurance
Aflac, Inc.		3,137		171,939		8.7
Allstate Corp.		269		27,355		1.4
American International Group, Inc.		872		46,460		2.4
Aon PLC		146		28,175		1.4
Assured Guaranty Ltd.		1,680		70,694		3.6
Lincoln National Corp.		2,139		137,859		7.0
MetLife, Inc.		2,789		138,530		7.1
Progressive Corp.		1,082		86,484		4.4
Prudential Financial, Inc.		1,365		137,865		7.0
				845,361
IT Services
DXC Technology Co.		314		17,317		0.9
Life Sciences Tools & Services
Agilent Technologies, Inc.		1,191		88,932		4.5
Machinery
Allison Transmission Holdings, Inc.		1,954		90,568		4.6
Caterpillar, Inc.		888		121,025		6.2
Illinois Tool Works, Inc.		149		22,471		1.1
				234,064
Media
AMC Networks, Inc., Class A		1,294		70,510		3.6
CBS Corp., Class B		1,318		65,768		3.3
Omnicom Group, Inc.		806		66,052		3.4
				202,330
Metals & Mining
Kinross Gold Corp.		17,799		69,060		3.5
Nucor Corp.		1,937		106,729		5.4
Steel Dynamics, Inc.		1,920		57,984		3.0
				233,773
Multi-Utilities
Dominion Energy, Inc.		414		32,010		1.6
Multiline Retail
Kohl’s Corp.		1,821		86,588		4.4
Macy’s, Inc.		3,995		85,733		4.4
Nordstrom, Inc.		2,087		66,492		3.4
Target Corp.		1,202		104,105		5.3
				342,918
Oil, Gas & Consumable Fuels
Apache Corp.		3,537		102,467		5.2
Chesapeake Energy Corp.		19,491		38,008		1.9
Chevron Corp.		687		85,490		4.4
HollyFrontier Corp.		687		31,794		1.6
Kinder Morgan, Inc.		4,840		101,059		5.1
Marathon Oil Corp.		3,009		42,758		2.2
Murphy Oil Corp.		4,568		112,601		5.7
Occidental Petroleum Corp.		271		13,626		0.7
Range Resources Corp.		2,269		15,838		0.8
Whiting Petroleum Corp.		197		3,680		0.2
				547,321

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Security	Shares			Value			% of Basket Value
Pharmaceuticals
Bristol-Myers Squibb Co.		2,340		$	106,119			5.4	%
Merck & Co., Inc.		989			82,928			4.2
					189,047
Road & Rail
CSX Corp.		1,573			121,703			6.2
Norfolk Southern Corp.		680			135,545			6.9
Union Pacific Corp.		812			137,317			7.0
					394,565
Semiconductors & Semiconductor Equipment
Applied Materials, Inc.		3,157			141,781			7.2
Intel Corp.		2,399			114,840			5.8
KLA-Tencor Corp.		873			103,189			5.3
					359,810
Software
Microsoft Corp.		34			4,555			0.2
Specialty Retail
Advance Auto Parts, Inc.		429			66,126			3.4
AutoZone, Inc.		122			134,135			6.8
Signet Jewelers Ltd.		2,312			41,339			2.1
					241,600
Technology Hardware, Storage & Peripherals
NetApp, Inc.		377			23,261			1.2
Seagate Technology PLC		1,424			67,099			3.4
Xerox Corp.		3,498			123,864			6.3
					214,224
Tobacco
Philip Morris International, Inc.		923			72,483			3.7
Trading Companies & Distributors
United Rentals, Inc.		801			106,237			5.4
Total Reference Entity — Long					9,360,221
Reference Entity — Short
Aerospace & Defense
L3 Technologies, Inc.		(124	)		(30,401	)		(1.6	)
Northrop Grumman Corp.		(392	)		(126,659	)		(6.4	)
TransDigm Group, Inc.		(280	)		(135,464	)		(6.9	)
Triumph Group, Inc.		(3,166	)		(72,502	)		(3.7	)
					(365,026	)
Air Freight & Logistics
FedEx Corp.		(32	)		(5,254	)		(0.3	)
Auto Components
Aptiv PLC		(257	)		(20,773	)		(1.1	)
Automobiles
Tesla, Inc.		(301	)		(67,261	)		(3.4	)
Beverages
Constellation Brands, Inc., Class A		(599	)		(117,967	)		(6.0	)
Capital Markets
Brookfield Asset Management, Inc., Class A		(2,258	)		(107,887	)		(5.5	)
Chemicals
PolyOne Corp.		(367	)		(11,520	)		(0.6	)
PPG Industries, Inc.		(1,127	)		(131,533	)		(6.7	)
Sherwin-Williams Co.		(297	)		(136,112	)		(6.9	)
Westlake Chemical Corp.		(396	)		(27,506	)		(1.4	)
					(306,671	)

Security	Shares			Value			% of Basket Value
Communications Equipment
ViaSat, Inc.		(1,495	)	$	(120,826	)		(6.2	) %
Construction Materials
Martin Marietta Materials, Inc.		(372	)		(85,601	)		(4.3	)
Vulcan Materials Co.		(913	)		(125,364	)		(6.4	)
					(210,965	)
Containers & Packaging
Ball Corp.		(373	)		(26,106	)		(1.3	)
Diversified Financial Services
Cboe Global Markets, Inc.		(937	)		(97,102	)		(4.9	)
S&P Global, Inc.		(551	)		(125,512	)		(6.4	)
					(222,614	)
Diversified Telecommunication Services
AT&T, Inc.		(1,953	)		(65,445	)		(3.3	)
Electric Utilities
Edison International		(2,065	)		(139,202	)		(7.1	)
Electronic Equipment, Instruments & Components
Avnet, Inc.		(1,771	)		(80,173	)		(4.1	)
Energy Equipment & Services
Baker Hughes a GE Co.		(1,152	)		(28,374	)		(1.4	)
Equity Real Estate Investment Trusts (REITs)
Digital Realty Trust, Inc.		(1,012	)		(119,203	)		(6.1	)
Host Hotels & Resorts, Inc.		(1,318	)		(24,014	)		(1.2	)
Medical Properties Trust, Inc.		(2,536	)		(44,228	)		(2.3	)
Omega Healthcare Investors, Inc.		(451	)		(16,574	)		(0.8	)
					(204,019	)
Food Products
Archer-Daniels-Midland Co.		(3,015	)		(123,012	)		(6.2	)
Bunge Ltd.		(2,044	)		(113,871	)		(5.8	)
ConAgra Foods, Inc.		(3,913	)		(103,773	)		(5.3	)
McCormick & Co., Inc.		(162	)		(25,112	)		(1.3	)
Post Holdings, Inc.		(717	)		(74,546	)		(3.8	)
					(440,314	)
Gas Utilities
ONEOK, Inc.		(1,981	)		(136,313	)		(6.9	)
Health Care Equipment & Supplies
Baxter International, Inc.		(824	)		(67,486	)		(3.4	)
Becton Dickinson & Co.		(527	)		(132,809	)		(6.8	)
Boston Scientific Corp.		(3,047	)		(130,960	)		(6.7	)
Hologic, Inc.		(1,905	)		(91,478	)		(4.6	)
Teleflex, Inc.		(368	)		(121,863	)		(6.2	)
Zimmer Biomet Holdings, Inc.		(524	)		(61,696	)		(3.1	)
					(606,292	)
Health Care Providers & Services
AmerisourceBergen Corp.		(80	)		(6,821	)		(0.4	)
MEDNAX, Inc.		(1,180	)		(29,771	)		(1.5	)
UnitedHealth Group, Inc.		(492	)		(120,053	)		(6.1	)
					(156,645	)
Hotels, Restaurants & Leisure
Aramark		(967	)		(34,870	)		(1.8	)
Marriott International, Inc., Class A		(934	)		(131,031	)		(6.7	)
MGM Resorts International		(702	)		(20,056	)		(1.0	)
					(185,957	)
Household Durables
Lennar Corp., Class A		(1,781	)		(86,307	)		(4.4	)
Newell Brands, Inc.		(3,274	)		(50,485	)		(2.6	)
Tempur Sealy International, Inc.		(88	)		(6,457	)		(0.3	)
					(143,249	)

SCHEDULE OF INVESTMENTS 25

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Security	Shares			Value			% of Basket Value
Industrial Conglomerates
Roper Industries, Inc.		(87	)	$	(31,865	)		(1.6	) %
Insurance
Brighthouse Financial, Inc.		(2,846	)		(104,420	)		(5.3	)
Loews Corp.		(483	)		(26,405	)		(1.3	)
Marsh & McLennan Cos., Inc.		(255	)		(25,436	)		(1.3	)
Willis Towers Watson PLC		(118	)		(22,602	)		(1.2	)
					(178,863	)
Interactive Media & Services
Match Group, Inc.		(1,965	)		(132,185	)		(6.7	)
Internet & Direct Marketing Retail
Expedia Group, Inc.		(955	)		(127,044	)		(6.4	)
Netflix, Inc.		(352	)		(129,296	)		(6.6	)
					(256,340	)
IT Services
Fiserv, Inc.		(1,367	)		(124,616	)		(6.3	)
GTT Communications, Inc.		(5,455	)		(96,008	)		(4.9	)
					(220,624	)
Leisure Products
Mattel, Inc.		(13,701	)		(153,588	)		(7.8	)
Machinery
Stanley Black & Decker, Inc.		(898	)		(129,860	)		(6.6	)
Wabtec Corp.		(1,653	)		(118,619	)		(6.0	)
					(248,479	)
Media
AMC Entertainment Holdings, Inc., Class A		(4,586	)		(42,787	)		(2.2	)
DISH Network Corp., Class A		(3,089	)		(118,649	)		(6.0	)
					(161,436	)
Metals & Mining
Freeport-McMoRan, Inc.		(2,489	)		(28,897	)		(1.5	)
Southern Copper Corp.		(2,073	)		(80,536	)		(4.1	)
United States Steel Corp.		(1,618	)		(24,772	)		(1.2	)
					(134,205	)
Multi-Utilities
Sempra Energy		(999	)		(137,303	)		(7.0	)
Multiline Retail
Dollar General Corp.		(257	)		(34,736	)		(1.8	)
Dollar Tree, Inc.		(1,003	)		(107,712	)		(5.5	)
					(142,448	)
Oil, Gas & Consumable Fuels
Canadian Natural Resources Ltd.		(871	)		(23,491	)		(1.2	)
Cimarex Energy Co.		(243	)		(14,417	)		(0.7	)
Concho Resources, Inc.		(1,066	)		(109,990	)		(5.6	)
Continental Resources, Inc.		(589	)		(24,791	)		(1.3	)
Enbridge, Inc.		(3,870	)		(139,630	)		(7.1	)
EQT Corp.		(1,603	)		(25,343	)		(1.3	)
Hess Corp.		(2,194	)		(139,473	)		(7.1	)
Parsley Energy, Inc., Class A		(4,427	)		(84,157	)		(4.3	)
Southwestern Energy Co.		(8,240	)		(26,038	)		(1.3	)
					(587,330	)
Pharmaceuticals
Endo International PLC		(8,597	)		(35,420	)		(1.8	)
Mylan NV		(3,936	)		(74,941	)		(3.8	)
Perrigo Co. PLC		(1,599	)		(76,144	)		(3.9	)
					(186,505	)

Security	Shares			Value			% of Basket Value
Professional Services
Equifax, Inc.		(1,029	)	$	(139,162	)		(7.1	) %
Verisk Analytics, Inc., Class A		(447	)		(65,468	)		(3.3	)
					(204,630	)
Real Estate Management & Development
CBRE Group, Inc., Class A		(802	)		(41,143	)		(2.1	)
Road & Rail
Hertz Global Holdings, Inc.		(3,945	)		(62,962	)		(3.2	)
Semiconductors & Semiconductor Equipment
NVIDIA Corp.		(474	)		(77,845	)		(4.0	)
Software
Activision Blizzard, Inc.		(2,813	)		(132,774	)		(6.8	)
Autodesk, Inc.		(437	)		(71,187	)		(3.6	)
Citrix Systems, Inc.		(865	)		(84,891	)		(4.3	)
Oracle Corp.		(2,037	)		(116,048	)		(5.9	)
					(404,900	)
Specialty Retail
Home Depot, Inc.		(113	)		(23,501	)		(1.2	)
Textiles, Apparel & Luxury Goods
Under Armour, Inc., Class A		(9,906	)		(251,117	)		(12.8	)
Total Reference Entity — Short					(7,394,602	)
Net Value of Reference Entity — Bank of America N.A.				$	1,965,619

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Morgan Stanley & Co. International PLC as of June 30, 2019 expiration date 02/27/23:

	Shares		Value		% of Basket Value
Reference Entity — Long
Aerospace & Defense
Lockheed Martin Corp.		736	$	267,565		152.1	%
Air Freight & Logistics
United Parcel Service, Inc., Class B		1,805		186,402		106.0
Airlines
Delta Air Lines, Inc.		304		17,252		9.8
Southwest Airlines Co.		2,315		117,556		66.8
United Airlines Holdings, Inc.		1,963		171,860		97.7
				306,668
Auto Components
Lear Corp.		578		80,498		45.8
Automobiles
Ford Motor Co.		12,969		132,673		75.4
General Motors Co.		1,145		44,117		25.1
				176,790
Biotechnology
AbbVie, Inc.		2,449		178,091		101.2
Amgen, Inc.		1,466		270,155		153.6
Biogen, Inc.		1,093		255,620		145.3
				703,866
Building Products
Masco Corp.		5,305		208,168		118.3
Owens Corning		2,052		119,427		67.9
				327,595

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

	Shares		Value		% of Basket Value
Capital Markets
MSCI, Inc.		916	$	218,732		124.3	%
Chemicals
CF Industries Holdings, Inc.		4,680		218,603		124.3
Eastman Chemical Co.		2,632		204,848		116.4
LyondellBasell Industries NV, Class A		1,944		167,437		95.2
				590,888
Commercial Services & Supplies
Republic Services, Inc.		2,428		210,362		119.6
Waste Management, Inc.		1,796		207,205		117.8
				417,567
Communications Equipment
Cisco Systems, Inc.		3,517		192,485		109.4
Juniper Networks, Inc.		5,598		149,075		84.8
				341,560
Consumer Finance
Capital One Financial Corp.		836		75,859		43.1
Containers & Packaging
International Paper Co.		2,457		106,437		60.5
Diversified Consumer Services
H&R Block, Inc.		7,799		228,511		129.9
Diversified Financial Services
Voya Financial, Inc.		3,774		208,702		118.6
Diversified Telecommunication Services
Verizon Communications, Inc.		4,010		229,091		130.2
Electric Utilities
Entergy Corp.		2,302		236,945		134.7
Eversource Energy		3,180		240,917		137.0
PPL Corp.		1,516		47,011		26.7
				524,873
Electrical Equipment
Eaton Corp. PLC		2,498		208,033		118.3
Electronic Equipment, Instruments & Components
Flex Ltd.		9,072		86,819		49.4
Energy Equipment & Services
Halliburton Co.		8,192		186,286		105.9
Schlumberger Ltd.		1,786		70,976		40.3
				257,262
Entertainment
Viacom, Inc., Class B		6,747		201,533		114.6
Equity Real Estate Investment Trusts (REITs)
Boston Properties, Inc.		1,472		189,888		107.9
Gaming and Leisure Properties, Inc.		4,959		193,302		109.9
HCP, Inc.		9,955		318,361		181.0
Kimco Realty Corp.		7,289		134,701		76.6
VEREIT, Inc.		12,459		112,255		63.8
				948,507
Food & Staples Retailing
Kroger Co.		3,838		83,323		47.4
Sysco Corp.		1,100		77,792		44.2
Walgreens Boots Alliance, Inc.		603		32,966		18.7
Walmart, Inc.		1,815		200,539		114.0
				394,620
Food Products
Hershey Co.		1,552		208,015		118.2

	Shares		Value		% of Basket Value
Health Care Equipment & Supplies
Abbott Laboratories		2,497	$	209,998		119.4	%
Health Care Providers & Services
Anthem, Inc.		167		47,129		26.8
Cardinal Health, Inc.		5,245		247,040		140.4
HCA Healthcare, Inc.		2,277		307,782		175.0
McKesson Corp.		1,691		227,253		129.2
				829,204
Hotels, Restaurants & Leisure
Hilton Worldwide Holdings, Inc.		2,546		248,846		141.4
McDonald’s Corp.		1,084		225,103		128.0
Royal Caribbean Cruises Ltd.		441		53,454		30.4
Six Flags Entertainment Corp.		4,317		214,469		121.9
Starbucks Corp.		2,749		230,449		131.0
Yum! Brands, Inc.		1,941		214,810		122.1
				1,187,131
Household Durables
PulteGroup, Inc.		7,984		252,454		143.5
Toll Brothers, Inc.		6,339		232,134		132.0
				484,588
Household Products
Clorox Co.		1,331		203,789		115.8
Colgate-Palmolive Co.		3,149		225,689		128.3
Kimberly-Clark Corp.		841		112,089		63.7
Procter & Gamble Co.		2,029		222,480		126.5
				764,047
Independent Power and Renewable Electricity Producers
AES Corp.		12,437		208,444		118.5
NRG Energy, Inc.		6,377		223,960		127.3
				432,404
Insurance
Aflac, Inc.		944		51,741		29.4
Allstate Corp.		2,496		253,818		144.3
American International Group, Inc.		234		12,467		7.1
Aon PLC		574		110,770		63.0
Assured Guaranty Ltd.		4,071		171,308		97.4
Lincoln National Corp.		3,082		198,635		112.9
MetLife, Inc.		4,316		214,376		121.9
Progressive Corp.		2,657		212,374		120.7
Prudential Financial, Inc.		1,976		199,576		113.4
				1,425,065
IT Services
DXC Technology Co.		4,215		232,458		132.2
Mastercard, Inc., Class A		225		59,519		33.8
				291,977
Life Sciences Tools & Services
Agilent Technologies, Inc.		1,084		80,942		46.0
Machinery
Allison Transmission Holdings, Inc.		3,948		182,990		104.0
Caterpillar, Inc.		1,726		235,236		133.7
Illinois Tool Works, Inc.		1,721		259,544		147.6
				677,770
Media
AMC Networks, Inc., Class A		3,373		183,795		104.5
CBS Corp., Class B		1,976		98,602		56.0
Omnicom Group, Inc.		1,386		113,583		64.6
				395,980

SCHEDULE OF INVESTMENTS 27

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

	Shares		Value		% of Basket Value
Metals & Mining
Kinross Gold Corp.		38,105	$	147,847		84.1	%
Nucor Corp.		4,308		237,371		134.9
Steel Dynamics, Inc.		9,488		286,538		162.9
				671,756
Multi-Utilities
Dominion Energy, Inc.		367		28,376		16.1
Multiline Retail
Kohl’s Corp.		5,241		249,210		141.7
Macy’s, Inc.		8,010		171,895		97.7
Nordstrom, Inc.		1,218		38,805		22.0
Target Corp.		2,758		238,870		135.8
				698,780
Oil, Gas & Consumable Fuels
Apache Corp.		8,265		239,437		136.1
Chesapeake Energy Corp.		18,642		36,352		20.7
Chevron Corp.		2,101		261,449		148.6
HollyFrontier Corp.		643		29,758		16.9
Kinder Morgan, Inc.		9,186		191,804		109.0
Marathon Oil Corp.		1,968		27,965		15.9
Murphy Oil Corp.		7,263		179,033		101.8
Occidental Petroleum Corp.		792		39,822		22.6
Phillips 66		804		75,206		42.8
Range Resources Corp.		6,393		44,623		25.4
Whiting Petroleum Corp.		3,055		57,067		32.4
				1,182,516
Pharmaceuticals
Bristol-Myers Squibb Co.		4,821		218,633		124.3
Merck & Co., Inc.		1,859		155,877		88.6
				374,510
Road & Rail
CSX Corp.		2,392		185,069		105.2
Norfolk Southern Corp.		1,012		201,722		114.7
Union Pacific Corp.		1,164		196,844		111.9
				583,635
Semiconductors & Semiconductor Equipment
Applied Materials, Inc.		4,634		208,113		118.3
Intel Corp.		4,924		235,712		134.0
KLA-Tencor Corp.		1,731		204,604		116.3
Lam Research Corp.		1,901		357,084		203.0
QUALCOMM, Inc.		1,960		149,097		84.7
Xilinx, Inc.		992		116,977		66.5
				1,271,587
Software
Microsoft Corp.		453		60,684		34.5
Specialty Retail
Advance Auto Parts, Inc.		1,099		169,400		96.3
AutoZone, Inc.		189		207,800		118.1
Signet Jewelers Ltd.		1,313		23,476		13.4
				400,676
Technology Hardware, Storage & Peripherals
NetApp, Inc.		589		36,341		20.7
Seagate Technology PLC		3,657		172,318		98.0
Xerox Corp.		6,381		225,951		128.4
				434,610
Tobacco
Philip Morris International, Inc.		3,327		261,269		148.5

	Shares			Value			% of Basket Value
Trading Companies & Distributors
United Rentals, Inc.		1,878		$	249,079			141.6	%
Total Reference Entity — Long					20,292,977
Reference Entity — Short
Aerospace & Defense
Boeing Co.		(676	)		(246,071	)		(139.9	)
Honeywell International, Inc.		(564	)		(98,469	)		(56.0	)
L3 Technologies, Inc.		(188	)		(46,092	)		(26.2	)
Northrop Grumman Corp.		(697	)		(225,207	)		(128.0	)
TransDigm Group, Inc.		(416	)		(201,261	)		(114.4	)
Triumph Group, Inc.		(6,008	)		(137,583	)		(78.2	)
					(954,683	)
Air Freight & Logistics
FedEx Corp.		(578	)		(94,902	)		(53.9	)
Auto Components
Aptiv PLC		(1,006	)		(81,315	)		(46.2	)
Automobiles
Tesla, Inc.		(1,241	)		(277,314	)		(157.6	)
Beverages
Constellation Brands, Inc., Class A		(1,202	)		(236,722	)		(134.6	)
Capital Markets
Brookfield Asset Management, Inc., Class A		(4,556	)		(217,685	)		(123.8	)
CME Group, Inc.		(1,734	)		(336,587	)		(191.3	)
					(554,272	)
Chemicals
Ecolab, Inc.		(676	)		(133,470	)		(75.9	)
PolyOne Corp.		(1,693	)		(53,143	)		(30.2	)
PPG Industries, Inc.		(1,833	)		(213,929	)		(121.6	)
Sherwin-Williams Co.		(444	)		(203,481	)		(115.7	)
Westlake Chemical Corp.		(646	)		(44,871	)		(25.5	)
					(648,894	)
Commercial Services & Supplies
Cintas Corp.		(1,459	)		(346,206	)		(196.8	)
Communications Equipment
CommScope Holding Co., Inc.		(6,194	)		(97,432	)		(55.4	)
Motorola Solutions, Inc.		(525	)		(87,533	)		(49.7	)
ViaSat, Inc.		(2,435	)		(196,797	)		(111.9	)
					(381,762	)
Construction Materials
Martin Marietta Materials, Inc.		(531	)		(122,188	)		(69.5	)
Vulcan Materials Co.		(1,666	)		(228,759	)		(130.0	)
					(350,947	)
Containers & Packaging
Ball Corp.		(1,911	)		(133,751	)		(76.0	)
Crown Holdings, Inc.		(4,175	)		(255,092	)		(145.0	)
					(388,843	)
Diversified Financial Services
Berkshire Hathaway, Inc., Class B		(1,469	)		(313,147	)		(178.0	)
Cboe Global Markets, Inc.		(2,176	)		(225,499	)		(128.2	)
Moody’s Corp.		(527	)		(102,928	)		(58.5	)
S&P Global, Inc.		(877	)		(199,772	)		(113.6	)
					(841,346	)
Diversified Telecommunication Services
AT&T, Inc.		(4,738	)		(158,770	)		(90.3	)

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

	Shares			Value			% of Basket Value
Electric Utilities
Edison International		(3,202	)	$	(215,847	)		(122.7	) %
Electronic Equipment, Instruments & Components
Avnet, Inc.		(3,359	)		(152,062	)		(86.4	)
Energy Equipment & Services
Baker Hughes a GE Co.		(7,139	)		(175,833	)		(100.0	)
Ensco Rowan PLC, Class A		(9,443	)		(80,549	)		(45.8	)
Transocean Ltd.		(22,975	)		(147,270	)		(83.7	)
					(403,652	)
Equity Real Estate Investment Trusts (REITs)
Crown Castle International Corp.		(658	)		(85,770	)		(48.8	)
Digital Realty Trust, Inc.		(1,664	)		(196,003	)		(111.4	)
Host Hotels & Resorts, Inc.		(2,023	)		(36,859	)		(20.9	)
Medical Properties Trust, Inc.		(7,080	)		(123,475	)		(70.2	)
MGM Growth Properties LLC, Class A		(4,639	)		(142,185	)		(80.8	)
Omega Healthcare Investors, Inc.		(1,129	)		(41,491	)		(23.6	)
					(625,783	)
Food & Staples Retailing
CVS Health Corp.		(5,373	)		(292,775	)		(166.4	)
Food Products
Archer-Daniels-Midland Co.		(5,431	)		(221,585	)		(126.0	)
Bunge Ltd.		(3,963	)		(220,779	)		(125.5	)
ConAgra Foods, Inc.		(7,654	)		(202,984	)		(115.4	)
Kellogg Co.		(4,773	)		(255,689	)		(145.3	)
McCormick & Co., Inc.		(1,788	)		(277,158	)		(157.6	)
Post Holdings, Inc.		(1,658	)		(172,382	)		(98.0	)
					(1,350,577	)
Gas Utilities
ONEOK, Inc.		(3,027	)		(208,288	)		(118.4	)
Health Care Equipment & Supplies
Baxter International, Inc.		(1,336	)		(109,418	)		(62.2	)
Becton Dickinson & Co.		(878	)		(221,265	)		(125.8	)
Boston Scientific Corp.		(4,843	)		(208,152	)		(118.3	)
Hologic, Inc.		(3,629	)		(174,265	)		(99.1	)
Teleflex, Inc.		(677	)		(224,188	)		(127.4	)
Zimmer Biomet Holdings, Inc.		(1,239	)		(145,880	)		(82.9	)
					(1,083,168	)
Health Care Providers & Services
AmerisourceBergen Corp.		(2,322	)		(197,974	)		(112.6	)
Centene Corp.		(3,355	)		(175,936	)		(100.0	)
Cigna Corp.		(2,193	)		(345,507	)		(196.4	)
Humana, Inc.		(210	)		(55,713	)		(31.7	)
MEDNAX, Inc.		(3,984	)		(100,516	)		(57.1	)
UnitedHealth Group, Inc.		(886	)		(216,193	)		(122.9	)
					(1,091,839	)
Hotels, Restaurants & Leisure
Aramark		(3,744	)		(135,009	)		(76.7	)
Marriott International, Inc., Class A		(1,584	)		(222,219	)		(126.3	)
MGM Resorts International		(1,598	)		(45,655	)		(26.0	)
Wynn Resorts Ltd.		(2,256	)		(279,721	)		(159.0	)
					(682,604	)
Household Durables
Lennar Corp., Class A		(4,715	)		(228,489	)		(129.9	)
Newell Brands, Inc.		(7,371	)		(113,661	)		(64.6	)
Tempur Sealy International, Inc.		(2,575	)		(188,927	)		(107.4	)
					(531,077	)
Household Products
Energizer Holdings, Inc.		(5,016	)		(193,818	)		(110.2	)

	Shares			Value			% of Basket Value
Industrial Conglomerates
Danaher Corp.		(1,022	)	$	(146,064	)		(83.1	) %
Roper Industries, Inc.		(259	)		(94,862	)		(53.9	)
					(240,926	)
Insurance
Brighthouse Financial, Inc.		(5,300	)		(194,457	)		(110.5	)
Loews Corp.		(552	)		(30,178	)		(17.2	)
Marsh & McLennan Cos., Inc.		(905	)		(90,274	)		(51.3	)
Willis Towers Watson PLC		(335	)		(64,166	)		(36.5	)
					(379,075	)
Interactive Media & Services
Match Group, Inc.		(2,862	)		(192,527	)		(109.4	)
Internet & Direct Marketing Retail
Amazon.com, Inc.		(70	)		(132,554	)		(75.3	)
Booking Holdings, Inc.		(185	)		(346,821	)		(197.2	)
Expedia Group, Inc.		(1,690	)		(224,821	)		(127.8	)
Netflix, Inc.		(598	)		(219,658	)		(124.9	)
					(923,854	)
IT Services
Fiserv, Inc.		(2,399	)		(218,693	)		(124.3	)
GTT Communications, Inc.		(1,276	)		(22,457	)		(12.8	)
Visa, Inc., Class A Shares		(1,932	)		(335,299	)		(190.6	)
					(576,449	)
Leisure Products
Mattel, Inc.		(9,003	)		(100,924	)		(57.4	)
Machinery
Stanley Black & Decker, Inc.		(1,481	)		(214,167	)		(121.7	)
Wabtec Corp.		(3,206	)		(230,063	)		(130.8	)
					(444,230	)
Media
AMC Entertainment Holdings, Inc., Class A		(6,790	)		(63,351	)		(36.0	)
Comcast Corp., Class A		(1,517	)		(64,139	)		(36.5	)
DISH Network Corp., Class A		(5,764	)		(221,395	)		(125.9	)
Walt Disney Co.		(1,317	)		(183,906	)		(104.5	)
					(532,791	)
Metals & Mining
Freeport-McMoRan, Inc.		(4,066	)		(47,206	)		(26.8	)
Southern Copper Corp.		(3,933	)		(152,797	)		(86.9	)
United States Steel Corp.		(11,800	)		(180,658	)		(102.7	)
					(380,661	)
Multi-Utilities
Sempra Energy		(1,498	)		(205,885	)		(117.0	)
Multiline Retail
Dollar General Corp.		(1,505	)		(203,416	)		(115.6	)
Dollar Tree, Inc.		(1,959	)		(210,377	)		(119.6	)
					(413,793	)
Oil, Gas & Consumable Fuels
Canadian Natural Resources Ltd.		(1,592	)		(42,936	)		(24.4	)
Cimarex Energy Co.		(766	)		(45,447	)		(25.8	)
Concho Resources, Inc.		(2,170	)		(223,901	)		(127.3	)
ConocoPhillips		(1,065	)		(64,965	)		(36.9	)
Continental Resources, Inc.		(980	)		(41,248	)		(23.5	)
Enbridge, Inc.		(2,855	)		(103,008	)		(58.6	)
EQT Corp.		(2,618	)		(41,391	)		(23.5	)
Hess Corp.		(2,935	)		(186,578	)		(106.1	)
Parsley Energy, Inc., Class A		(8,402	)		(159,722	)		(90.8	)
Southwestern Energy Co.		(27,625	)		(87,295	)		(49.6	)
TC Energy Corp.		(1,170	)		(57,938	)		(32.9	)
					(1,054,429	)

SCHEDULE OF INVESTMENTS 29

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

	Shares			Value			% of Basket Value
Pharmaceuticals
Endo International PLC		(5,443	)	$	(22,425	)		(12.8	) %
Mylan NV		(12,933	)		(246,244	)		(140.0	)
Perrigo Co. PLC		(4,467	)		(212,719	)		(120.9	)
Pfizer, Inc.		(1,503	)		(65,110	)		(37.0	)
					(546,498	)
Professional Services
Equifax, Inc.		(1,556	)		(210,434	)		(119.6	)
Verisk Analytics, Inc., Class A		(905	)		(132,546	)		(75.4	)
					(342,980	)
Real Estate Management & Development
CBRE Group, Inc., Class A		(2,806	)		(143,948	)		(81.8	)
Road & Rail
Hertz Global Holdings, Inc.		(11,984	)		(191,265	)		(108.7	)
Semiconductors & Semiconductor Equipment
Micron Technology, Inc.		(3,320	)		(128,119	)		(72.9	)
NVIDIA Corp.		(1,653	)		(271,472	)		(154.3	)
					(399,591	)
Software
Activision Blizzard, Inc.		(4,576	)		(215,987	)		(122.8	)
Autodesk, Inc.		(1,410	)		(229,689	)		(130.6	)
Citrix Systems, Inc.		(1,685	)		(165,366	)		(94.0	)
Oracle Corp.		(3,157	)		(179,854	)		(102.2	)
					(790,896	)
Specialty Retail
Home Depot, Inc.		(186	)		(38,682	)		(22.0	)
Textiles, Apparel & Luxury Goods
Under Armour, Inc., Class A		(2,769	)		(70,194	)		(39.9	)
Total Reference Entity — Short					(20,117,064	)
Net Value of Reference Entity — Morgan Stanley & Co. International PLC				$	175,913

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Morgan Stanley & Co. International PLC as of June 30, 2019 expiration date 02/07/23:

Security	Shares		Value		% of Basket Value
Reference Entity — Long
Aerospace & Defense
Lockheed Martin Corp.		549	$	199,584		55.0	%
Northrop Grumman Corp.		630		203,559		56.1
Raytheon Co.		1,509		262,385		72.4
				665,528
Airlines
Southwest Airlines Co.		3,773		191,593		52.8
Auto Components
BorgWarner, Inc.		641		26,909		7.4
Goodyear Tire & Rubber Co.		1,239		18,957		5.3
				45,866
Beverages
Coca-Cola Co.		4,696		239,120		65.9

Security	Shares		Value		% of Basket Value
Biotechnology
Amgen, Inc.		1,280	$	235,878		65.1	%
Building Products
Johnson Controls International PLC		2,036		84,107		23.2
Chemicals
Air Products & Chemicals, Inc.		1,000		226,370		62.4
Eastman Chemical Co.		1,551		120,714		33.3
Olin Corp.		10,658		233,517		64.4
				580,601
Commercial Services & Supplies
Republic Services, Inc.		2,620		226,997		62.6
Waste Management, Inc.		1,976		227,971		62.9
				454,968
Communications Equipment
Cisco Systems, Inc.		4,434		242,673		66.9
Consumer Finance
American Express Co.		2,194		270,828		74.7
Navient Corp.		29,779		406,483		112.1
				677,311
Containers & Packaging
Packaging Corp. of America		1,647		156,992		43.3
Sealed Air Corp.		5,217		223,183		61.6
Westrock Co.		6,485		236,508		65.2
				616,683
Diversified Telecommunication Services
Verizon Communications, Inc.		4,337		247,773		68.3
Electric Utilities
Duke Energy Corp.		2,770		244,425		67.4
Exelon Corp.		4,784		229,345		63.3
				473,770
Electrical Equipment
Eaton Corp. PLC		840		69,955		19.3
Electronic Equipment, Instruments & Components
Arrow Electronics, Inc.		4,094		291,779		80.5
Energy Equipment & Services
Halliburton Co.		12,682		288,389		79.5
Entertainment
Viacom, Inc., Class B		7,574		226,235		62.4
Equity Real Estate Investment Trusts (REITs)
AvalonBay Communities, Inc.		1,125		228,577		63.0
Boston Properties, Inc.		1,868		240,972		66.5
Simon Property Group, Inc.		1,276		203,854		56.2
				673,403
Food & Staples Retailing
Costco Wholesale Corp.		466		123,145		34.0
Walmart, Inc.		1,993		220,207		60.7
				343,352
Food Products
Kraft Heinz Co.		3,387		105,133		29.0
Mondelez International, Inc., Class A		1,519		81,874		22.6
				187,007
Health Care Equipment & Supplies
Baxter International, Inc.		860		70,434		19.4
Medtronic PLC		2,161		210,460		58.1
				280,894

30 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Security	Shares		Value		% of Basket Value
Health Care Providers & Services
CVS Health Corp.		1,460	$	79,556		21.9	%
HCA Healthcare, Inc.		1,519		205,323		56.6
Humana, Inc.		870		230,811		63.7
Universal Health Services, Inc., Class B		926		120,741		33.3
				636,431
Hotels, Restaurants & Leisure
Boyd Gaming Corp.		11,015		296,744		81.8
McDonald’s Corp.		852		176,926		48.8
MGM Resorts International		3,019		86,253		23.8
Yum! Brands, Inc.		1,868		206,732		57.0
				766,655
Household Durables
PulteGroup, Inc.		5,054		159,807		44.1
Toll Brothers, Inc.		6,742		246,892		68.1
Whirlpool Corp.		3,019		429,785		118.5
				836,484
Household Products
Colgate-Palmolive Co.		3,819		273,708		75.5
Kimberly-Clark Corp.		1,650		219,912		60.6
Procter & Gamble Co.		2,037		223,357		61.6
				716,977
Independent Power and Renewable Electricity Producers
AES Corp.		19,926		333,960		92.1
NRG Energy, Inc.		6,890		241,977		66.7
				575,937
Industrial Conglomerates
3M Co.		995		172,473		47.6
Insurance
Allstate Corp.		2,047		208,159		57.4
Aon PLC		950		183,331		50.6
Hartford Financial Services Group, Inc.		3,101		172,788		47.6
Loews Corp.		5,418		296,202		81.7
MetLife, Inc.		2,482		123,281		34.0
Unum Group		9,062		304,030		83.8
				1,287,791
Machinery
Caterpillar, Inc.		1,640		223,516		61.6
Media
CBS Corp., Class B		2,271		113,323		31.3
Omnicom Group, Inc.		3,987		326,734		90.1
TEGNA, Inc.		16,391		248,324		68.5
Walt Disney Co.		1,380		192,703		53.1
				881,084
Metals & Mining
Barrick Gold Corp.		25,734		405,825		111.9
Newmont Goldcorp Corp.		9,958		383,084		105.7
Nucor Corp.		7,511		413,856		114.1
Teck Resources Ltd., Class B		3,100		71,486		19.7
				1,274,251
Multi-Utilities
CMS Energy Corp.		6,863		397,436		109.6
Multiline Retail
Macy’s, Inc.		15,049		322,952		89.0
Target Corp.		1,766		152,953		42.2
				475,905
Oil, Gas & Consumable Fuels
Apache Corp.		9,209		266,785		73.6
Chevron Corp.		1,887		234,818		64.7

Security	Shares			Value			% of Basket Value
Oil, Gas & Consumable Fuels (continued)
ConocoPhillips		4,415		$	269,315			74.2	%
Devon Energy Corp.		9,598			273,735			75.5
Encana Corp.		29,105			149,309			41.2
Marathon Oil Corp.		21,077			299,504			82.6
Murphy Oil Corp.		10,426			257,001			70.9
Valero Energy Corp.		3,609			308,966			85.2
					2,059,433
Pharmaceuticals
Bausch Health Cos., Inc.		10,475			264,180			72.9
Bristol-Myers Squibb Co.		5,745			260,536			71.8
Eli Lilly & Co.		3,561			394,523			108.8
Johnson & Johnson		1,512			210,591			58.1
					1,129,830
Road & Rail
Avis Budget Group, Inc.		6,972			245,136			67.6
Canadian National Railway Co.		2,702			249,881			68.9
CSX Corp.		2,612			202,091			55.7
Norfolk Southern Corp.		1,095			218,266			60.2
Union Pacific Corp.		1,176			198,873			54.9
					1,114,247
Semiconductors & Semiconductor Equipment
Intel Corp.		6,447			308,618			85.1
Software
Oracle Corp.		5,055			287,983			79.4
Specialty Retail
AutoZone, Inc.		198			217,695			60.0
Best Buy Co., Inc.		2,196			153,127			42.2
Gap, Inc.		22,510			404,505			111.6
Home Depot, Inc.		1,454			302,388			83.4
Lowe’s Cos., Inc.		1,314			132,596			36.6
					1,210,311
Technology Hardware, Storage & Peripherals
HP, Inc.		543			11,289			3.1
Xerox Corp.		7,008			248,153			68.4
					259,442
Tobacco
Philip Morris International, Inc.		5,004			392,964			108.4
Trading Companies & Distributors
HD Supply Holdings, Inc.		8,174			329,249			90.8
United Rentals, Inc.		2,132			282,767			78.0
					612,016
Total Reference Entity — Long				22,736,669
Reference Entity — Short
Aerospace & Defense
Boeing Co.		(610	)		(222,046	)		(61.3	)
General Dynamics Corp.		(465	)		(84,547	)		(23.3	)
Honeywell International, Inc.		(2,331	)		(406,969	)		(112.2	)
Textron, Inc.		(4,526	)		(240,059	)		(66.2	)
					(953,621	)
Air Freight & Logistics
FedEx Corp.		(1,425	)		(233,971	)		(64.5	)
United Parcel Service, Inc., Class B		(2,206	)		(227,813	)		(62.9	)
					(461,784	)
Automobiles
Tesla, Inc.		(1,466	)		(327,592	)		(90.3	)

SCHEDULE OF INVESTMENTS 31

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Security	Shares			Value			% of Basket Value
Beverages
Constellation Brands, Inc., Class A		(1,157	)	$	(227,860	)		(62.8	) %
Molson Coors Brewing Co., Class B		(4,421	)		(247,576	)		(68.3	)
					(475,436	)
Chemicals
PPG Industries, Inc.		(1,853	)		(216,264	)		(59.6	)
RPM International, Inc.		(3,702	)		(226,229	)		(62.4	)
Sherwin-Williams Co.		(866	)		(396,879	)		(109.5	)
					(839,372	)
Communications Equipment
Motorola Solutions, Inc.		(910	)		(151,724	)		(41.8	)
Construction Materials
Vulcan Materials Co.		(231	)		(31,719	)		(8.8	)
Consumer Finance
Capital One Financial Corp.		(1,909	)		(173,223	)		(47.8	)
Containers & Packaging
International Paper Co.		(1,551	)		(67,189	)		(18.5	)
Diversified Financial Services
Berkshire Hathaway, Inc., Class B		(981	)		(209,120	)		(57.7	)
Welltower, Inc.		(4,847	)		(395,176	)		(109.0	)
					(604,296	)
Diversified Telecommunication Services
AT&T, Inc.		(6,389	)		(214,095	)		(59.0	)
Electric Utilities
American Electric Power Co., Inc.		(4,182	)		(368,058	)		(101.5	)
Entergy Corp.		(981	)		(100,974	)		(27.8	)
FirstEnergy Corp.		(4,725	)		(202,277	)		(55.8	)
Southern Co.		(7,124	)		(393,815	)		(108.6	)
					(1,065,124	)
Electronic Equipment, Instruments & Components
Avnet, Inc.		(4,985	)		(225,671	)		(62.2	)
Corning, Inc.		(7,743	)		(257,300	)		(71.0	)
					(482,971	)
Energy Equipment & Services
Transocean Ltd.		(57,081	)		(365,889	)		(100.9	)
Equity Real Estate Investment Trusts (REITs)
HCP, Inc.		(7,918	)		(253,218	)		(69.8	)
Kimco Realty Corp.		(11,680	)		(215,846	)		(59.5	)
SITE Centers Corp.		(2,638	)		(34,927	)		(9.6	)
Weyerhaeuser Co.		(8,182	)		(215,514	)		(59.5	)
					(719,505	)
Food & Staples Retailing
Kroger Co.		(9,790	)		(212,541	)		(58.6	)
Food Products
Archer-Daniels-Midland Co.		(7,712	)		(314,650	)		(86.8	)
Campbell Soup Co.		(313	)		(12,542	)		(3.4	)
ConAgra Foods, Inc.		(8,203	)		(217,543	)		(60.0	)
General Mills, Inc.		(2,007	)		(105,408	)		(29.1	)
Hershey Co.		(2,900	)		(388,687	)		(107.2	)
Kellogg Co.		(3,804	)		(203,780	)		(56.2	)
Tyson Foods, Inc., Class A		(2,017	)		(162,853	)		(44.9	)
					(1,405,463	)
Gas Utilities
ONEOK, Inc.		(3,333	)		(229,344	)		(63.3	)
Health Care Equipment & Supplies
Abbott Laboratories		(2,630	)		(221,183	)		(61.0	)
Boston Scientific Corp.		(10,246	)		(440,373	)		(121.4	)
					(661,556	)

Security	Shares			Value			% of Basket Value
Health Care Providers & Services
AmerisourceBergen Corp.		(2,248	)	$	(191,665	)		(52.9	) %
Anthem, Inc.		(515	)		(145,338	)		(40.1	)
Cardinal Health, Inc.		(4,091	)		(192,686	)		(53.1	)
Cigna Corp.		(2,475	)		(389,936	)		(107.5	)
McKesson Corp.		(1,715	)		(230,479	)		(63.6	)
Quest Diagnostics, Inc.		(1,773	)		(180,509	)		(49.8	)
UnitedHealth Group, Inc.		(1,628	)		(397,248	)		(109.5	)
					(1,727,861	)
Hotels, Restaurants & Leisure
Carnival Corp.		(7,471	)		(347,775	)		(95.9	)
Darden Restaurants, Inc.		(1,375	)		(167,379	)		(46.1	)
Marriott International, Inc., Class A		(1,558	)		(218,572	)		(60.3	)
Royal Caribbean Cruises Ltd.		(1,792	)		(217,208	)		(59.9	)
					(950,934	)
Household Durables
DR Horton, Inc.		(4,710	)		(203,142	)		(56.0	)
MDC Holdings, Inc.		(1,560	)		(51,137	)		(14.1	)
Mohawk Industries, Inc.		(1,246	)		(183,748	)		(50.7	)
Newell Brands, Inc.		(15,774	)		(243,235	)		(67.1	)
					(681,262	)
Household Products
Clorox Co.		(2,592	)		(396,861	)		(109.5	)
Industrial Conglomerates
Danaher Corp.		(1,374	)		(196,372	)		(54.2	)
Insurance
American International Group, Inc.		(3,082	)		(164,209	)		(45.3	)
Marsh & McLennan Cos., Inc.		(2,057	)		(205,186	)		(56.6	)
Prudential Financial, Inc.		(2,668	)		(269,468	)		(74.3	)
Travelers Cos., Inc.		(1,642	)		(245,512	)		(67.7	)
					(884,375	)
Internet & Direct Marketing Retail
Expedia Group, Inc.		(1,625	)		(216,174	)		(59.6	)
IT Services
International Business Machines Corp.		(2,233	)		(307,930	)		(84.9	)
Western Union Co.		(19,666	)		(391,157	)		(107.9	)
					(699,087	)
Leisure Products
Brunswick Corp.		(4,184	)		(192,004	)		(52.9	)
Hasbro, Inc.		(1,776	)		(187,687	)		(51.8	)
					(379,691	)
Machinery
Deere & Co.		(1,640	)		(271,764	)		(74.9	)
Dover Corp.		(362	)		(36,273	)		(10.0	)
Stanley Black & Decker, Inc.		(3,031	)		(438,313	)		(120.9	)
					(746,350	)
Media
Comcast Corp., Class A		(9,067	)		(383,353	)		(105.7	)
DISH Network Corp., Class A		(5,573	)		(214,059	)		(59.1	)
					(597,412	)
Metals & Mining
Freeport-McMoRan, Inc.		(36,413	)		(422,755	)		(116.6	)
United States Steel Corp.		(28,216	)		(431,987	)		(119.1	)
					(854,742	)
Multi-Utilities
Sempra Energy		(1,399	)		(192,279	)		(53.0	)

32 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

Security	Shares			Value			% of Basket Value
Multiline Retail
Kohl’s Corp.		(6,957	)	$	(330,805	)		(91.2	) %
Nordstrom, Inc.		(8,513	)		(271,224	)		(74.8	)
					(602,029	)
Oil, Gas & Consumable Fuels
Canadian Natural Resources Ltd.		(1,386	)		(37,381	)		(10.3	)
Enbridge, Inc.		(6,354	)		(229,252	)		(63.2	)
Exxon Mobil Corp.		(944	)		(72,339	)		(20.0	)
Hess Corp.		(3,862	)		(245,507	)		(67.7	)
Kinder Morgan, Inc.		(3,744	)		(78,175	)		(21.6	)
Occidental Petroleum Corp.		(4,801	)		(241,394	)		(66.6	)
Suncor Energy, Inc.		(7,044	)		(219,491	)		(60.5	)
Whiting Petroleum Corp.		(18,042	)		(337,025	)		(92.9	)
Williams Cos., Inc.		(9,260	)		(259,650	)		(71.6	)
					(1,720,214	)
Paper & Forest Products
Louisiana-Pacific Corp.		(7,867	)		(206,273	)		(56.9	)
Road & Rail
Ryder System, Inc.		(1,265	)		(73,749	)		(20.3	)

Security	Shares			Value			% of Basket Value
Semiconductors & Semiconductor Equipment
Advanced Micro Devices, Inc.		(7,888	)	$	(239,559	)		(66.1	) %
Texas Instruments, Inc.		(1,844	)		(211,617	)		(58.3	)
					(451,176	)
Specialty Retail
L Brands, Inc.		(9,867	)		(257,529	)		(71.0	)
TJX Cos., Inc.		(5,881	)		(310,987	)		(85.8	)
					(568,516	)
Textiles, Apparel & Luxury Goods
VF Corp.		(2,250	)		(196,537	)		(54.2	)
Tobacco
Altria Group, Inc.		(3,655	)		(173,064	)		(47.7	)
Wireless Telecommunication Services
Rogers Communications, Inc., Class B		(7,785	)		(416,653	)		(114.9	)
Total Reference Entity — Short					(22,374,055	)
Net Value of Reference Entity — Morgan Stanley & Co. International PLC				$	362,614

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)	$	265	$	(91,030	)	$	100,020	$	(97,184	)
OTC Swaps		—		—			374,081		(143,939	)

^(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 Instrument
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	241,458	$	—	$	241,458
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		—		—		—		100,020		—		100,020
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		—		365,913		—		8,168		—		374,081
	$	—	$	—	$	365,913	$	—	$	349,646	$	—	$	715,559
Liabilities — Derivative Financial Instrument
Futures contracts
Unrealized depreciation on futures contracts(a)	$	—	$	—	$	10,342	$	—	$	77,704	$	—	$	88,046
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		4,730		—		—		4,730
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		2,513		—		—		94,671		—		97,184
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		—		142,841		—		1,098		—		143,939
	$	—	$	2,513	$	153,183	$	4,730	$	173,473	$	—	$	333,899

^(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).

SCHEDULE OF INVESTMENTS 33

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

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

	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—		$	—		$	420,085	$	—	$	420,085
Forward foreign currency exchange contracts		—		—		—			1,017			—		—		1,017
Swaps		—		22,360		885,011			—			25,154		—		932,525
	$	—	$	22,360	$	885,011		$	1,017		$	445,239	$	—	$	1,353,627
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	(10,342	)	$	—	��	$	144,514	$	—	$	134,172
Forward foreign currency exchange contracts		—		—		—			(4,794	)		—		—		(4,794	)
Swaps		—		24,810		(777,567	)		—			22,130		—		(730,627	)
	$	—	$	24,810	$	(787,909	)	$	(4,794	)	$	166,644	$	—	$	(601,249	)

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts purchased	$	14,186,914
Average notional value of contracts sold	$	10,040,507
Forward foreign currency exchange contracts:
Average amounts purchased — in USD	$	234,351
Credit default swaps:
Average notional value — buy protection	$	1,328,750
Average notional value — sell protection	$	—	(a)
Interest rate swaps:
Average notional value — pays fixed rate	$	6,360,875
Average notional value — receives fixed rate	$	6,447,895
Total return swaps:
Average notional amount	$	1,899,188

^(a)  Derivative not held at 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) are as follows:

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	6,665		$	25,703
Forward foreign currency exchange contracts		—			4,730
Swaps — Centrally cleared		6,548			—
Swaps — OTC(a)		374,081			143,939
Total derivative assets and liabilities in the Statement of Assets and Liabilities		387,294			174,372
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(13,213	)		(25,703	)
Total derivative assets and liabilities subject to an MNA	$	374,081		$	148,669

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

34 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy Fund

The following table presents 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 Trust:

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received (b)			Net Amount of Derivative Assets (c)
Bank of America N.A.	$	60,549	$	(60,549	)	$	—	$	—		$	—
Citibank N.A.		3,710		(3,710	)		—		—			—
Deutsche Bank AG		2,824		(1,098	)		—		—			1,726
JPMorgan Chase Bank N.A.		416		(416	)		—		—			—
Morgan Stanley & Co. International PLC		306,582		—			—		(110,000	)		196,582
	$	374,081	$	(65,773	)	$	—	$	(110,000	)	$	198,308

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged (d)			Net Amount of Derivative Liabilities (e)
Bank of America N.A.	$	142,841	$	(60,549	)	$	—	$	(82,292	)	$	—
Citibank N.A.		3,946		(3,710	)		—		—			236
Deutsche Bank AG		1,098		(1,098	)		—		—			—
JPMorgan Chase Bank N.A.		623		(416	)		—		—			207
Royal Bank of Canada		158		—			—		—			158
Standard Chartered Bank		3		—			—		—			3
	$	148,669	$	(65,773	)	$	—	$	(82,292	)	$	604

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

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

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

^(d)  Net excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

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

SCHEDULE OF INVESTMENTS 35

Schedule of Investments  (unaudited) (continued) June 30, 2019 BlackRock Systematic Multi-Strategy 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:
Asset-Backed Securities	$	—		$	14,397,481		$	980,392	$	15,377,873
Common Stocks		11,430,935			—			—		11,430,935
Corporate Bonds		—			52,025,493			—		52,025,493
Non-Agency Mortgage-Backed Securities		—			2,823,328			—		2,823,328
Short-Term Securities		9,943,830			—			—		9,943,830
U.S. Government Sponsored Agency Securities		—			58,840,466			—		58,840,466
U.S. Treasury Obligations		—			7,182,363			—		7,182,363
Liabilities:
Investments:
TBA Sale Commitments		—			(10,523,714	)		—		(10,523,714	)
	$	21,374,765		$	124,745,417		$	980,392	$	147,100,574
Derivative Financial Instruments(a)
Assets:
Equity contracts	$	—		$	365,913		$	—	$	365,913
Interest rate contracts		241,458			108,188			—		349,646
Liabilities:
Credit contracts		—			(2,513	)		—		(2,513	)
Equity contracts		(10,342	)		(142,841	)		—		(153,183	)
Forward foreign currency contracts		—			(4,730	)		—		(4,730	)
Interest rate contracts		(77,704	)		(95,769	)		—		(173,473	)
	$	153,412		$	228,248		$	—	$	381,660

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

See notes to financial statements.

36 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Assets and Liabilities  (unaudited)

June 30, 2019

	BlackRock Systematic Multi- Strategy Fund
ASSETS
Investments at value — unaffiliated (cost — $145,354,119)	$	147,680,458
Investments at value — affiliated (cost — $9,943,830)		9,943,830
Cash pledged:
Collateral — OTC derivatives		480,000
Futures contracts		292,683
Centrally cleared swaps		190,000
Foreign currency at value (cost — $311,347)		311,536
Receivables:
Investments sold		322,416
TBA sale commitments		10,496,650
Capital shares sold		396,323
Dividends — affiliated		30,181
Dividends — unaffiliated		28,787
Interest — unaffiliated		688,168
Variation margin on futures contract		6,665
Variation margin on centrally cleared swaps		6,548
Unrealized appreciation on OTC swaps		374,081
Prepaid expenses		51,623
Total assets		171,299,949
LIABILITIES
Cash received:
Collateral — OTC derivatives		110,000
Payables:
Investments purchased		37,738,029
Capital shares redeemed		663,376
Investment advisory fees		55,210
Trustees’ and Officer’s fees		421
Other accrued expenses		250,696
Service and distribution fees		3,001
Variation margin on futures contracts		25,703
TBA sale commitments at value (proceeds — $10,496,650)		10,523,714
Unrealized depreciation on:
Forward foreign currency exchange contracts		4,730
OTC swaps		143,939
Total liabilities		49,518,819
NET ASSETS	$	121,781,130
NET ASSETS CONSIST OF
Paid-in capital	$	118,967,491
Accumulated earnings		2,813,639
NET ASSETS	$	121,781,130
Institutional
Net assets	$	105,914,809
Shares outstanding(e)		10,477,267
Net asset value	$	10.11
Investor A
Net assets	$	15,747,744
Shares outstanding(e)		1,560,137
Net asset value	$	10.09
Investor C
Net assets	$	118,577
Shares outstanding(e)		11,756
Net asset value	$	10.09
(e) Unlimited number of shares authorized, $0.001 par value.

See notes to financial statements.

FINANCIAL STATEMENTS 37

Statement of Operations  (unaudited) 

Six Months Ended June 30, 2019

	BlackRock Systematic Multi- Strategy Fund
INVESTMENT INCOME
Dividends — affiliated	$	133,437
Dividends — unaffiliated		129,050
Interest — unaffiliated		913,503
Total investment income		1,175,990
EXPENSES
Investment advisory		255,353
Professional		73,892
Custodian		37,888
Registration		25,929
Transfer agent — class specific		18,836
Administration		13,566
Printing		12,241
Accounting services		11,833
Service and distribution — class specific		11,097
Administration — class specific		6,384
Trustees and Officer		1,763
Miscellaneous		27,261
Total expenses		496,043
Less:
Fees waived and/or reimbursed by the Administrator		(2,189	)
Fees waived and/or reimbursed by Administrator — class specific		(6,384	)
Fees waived and/or reimbursed by the Manager		(154,248	)
Transfer agent fees waived and/or reimbursed — class specific		(18,834	)
Total expenses after fees waived and/or reimbursed		314,388
Net investment income		861,602
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		293,073
Futures contracts		420,085
Forward foreign currency exchange contracts		1,017
Foreign currency transactions		(1,148	)
Swaps		932,525
		1,645,552
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		2,865,165
Futures contracts		134,172
Forward foreign currency exchange contracts		(4,794	)
Foreign currency translations		4,026
Swaps		(730,627	)
		2,267,942
Net realized and unrealized gain		3,913,494
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	4,775,096

See notes to financial statements.

38 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

	BlackRock Systematic Multi-Strategy Fund
	Six Months Ended 06/30/19 (unaudited)			Year Ended 12/31/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	861,602		$	884,540
Net realized gain		1,645,552			1,225,192
Net change in unrealized appreciation (depreciation)		2,267,942			(1,561,989	)
Net increase in net assets resulting from operations		4,775,096			547,743
DISTRIBUTIONS TO SHAREHOLDERS(a)
Institutional		(259,001	)		(2,551,421	)
Investor A		(55,580	)		(151,678	)
Investor C		(422	)		(5,147	)
Decrease in net assets resulting from distributions to shareholders		(315,003	)		(2,708,246	)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		81,560,936			9,056,907
NET ASSETS
Total increase in net assets		86,021,029			6,896,404
Beginning of period		35,760,101			28,863,697
End of period	$	121,781,130		$	35,760,101

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

See notes to financial statements.

FINANCIAL STATEMENTS 39

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Systematic Multi-Strategy Fund
	Institutional
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,									Period from 05/19/15(a) to 12/31/15
				2018			2017			2016
Net asset value, beginning of period	$	9.47		$	10.15		$	9.61		$	9.53		$	10.00
Net investment income(b)		0.13			0.29			0.22			0.16			0.11
Net realized and unrealized gain (loss)		0.57			(0.12	)		0.73			0.40			(0.46	)
Net increase (decrease) from investment operations		0.70			0.17			0.95			0.56			(0.35	)
Distributions(c)
From net investment income		(0.06	)		(0.29	)		(0.22	)		(0.16	)		(0.12	)
From net realized gain		—			(0.56	)		(0.19	)		(0.32	)		—
Total distributions		(0.06	)		(0.85	)		(0.41	)		(0.48	)		(0.12	)
Net asset value, end of period	$	10.11		$	9.47		$	10.15		$	9.61		$	9.53
Total Return(d)
Based on net asset value		7.36	%(e)		1.74	%		10.00	%		5.91	%		(3.53	)%(e)
Ratios to Average Net Assets(f)
Total expenses		1.50	%(g)		2.33	%		2.16	%		2.24	%		2.05	%(g)(h)
Total expenses after fees waived and/or reimbursed		0.95	%(g)		0.95	%		0.95	%		1.19	%		1.20	%(g)
Total expenses after fees waived and/or reimbursed and excluding excise tax		0.95	%(g)		0.95	%		0.95	%		1.18	%		1.20	%(g)
Net investment income		2.73	%(g)		2.93	%		2.19	%		1.64	%		1.79	%(g)
Supplemental Data
Net assets, end of period (000)	$	105,915		$	32,961		$	27,328		$	25,588		$	23,844
Portfolio turnover rate(i)(j)		282	%		426	%		424	%		722	%		440	%

^(a)  Commencement of operations.

^(b)  Based on average shares outstanding.

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

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

^(e)  Aggregate 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,									Period from 05/19/15 to 12/31/15
				2018			2017			2016
Investments in underlying funds		0.03	%		0.01	%		0.00	%		0.02	%		0.03	%

^(g)  Annualized.

^(h)  Audit, offering and organization costs were not annualized in the calculation of expense ratios. If these expenses were annualized, the total expenses would have been 2.44%.

⁽ⁱ⁾  Excludes investments underlying the total return swaps.

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

	Six Months Ended 06/30/19 (Unaudited)			Year Ended December 31,									Period from 05/19/15 to 12/31/15
				2018			2017			2016
Portfolio turnover rate (excluding MDRs)(i)		168	%		220	%		251	%		488	%		437	%

See notes to financial statements.

40 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Systematic Multi-Strategy Fund (continued)
	Investor A
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,									Period from 05/19/15(a) to 12/31/15
				2018			2017			2016
Net asset value, beginning of period	$	9.46		$	10.15		$	9.60		$	9.53		$	10.00
Net investment income(b)		0.12			0.22			0.19			0.14			0.11
Net realized and unrealized gain (loss)		0.56			(0.09	)		0.74			0.39			(0.48	)
Net increase (decrease) from investment operations		0.68			0.13			0.93			0.53			(0.37	)
Distributions(c)
From net investment income		(0.05	)		(0.26	)		(0.19	)		(0.14	)		(0.10	)
From net realized gain		—			(0.56	)		(0.19	)		(0.32	)		—
Total distributions		(0.05	)		(0.82	)		(0.38	)		(0.46	)		(0.10	)
Net asset value, end of period	$	10.09		$	9.46		$	10.15		$	9.60		$	9.53
Total Return(d)
Based on net asset value		7.23	%(e)		1.41	%		9.83	%		5.61	%		(3.66	)%(e)
Ratios to Average Net Assets(f)
Total expenses		1.88	%(g)		2.73	%		2.63	%		2.75	%		2.42	%(g)(h)
Total expenses after fees waived and/or reimbursed		1.20	%(g)		1.20	%		1.20	%		1.42	%		1.45	%(g)
Total expenses after fees waived and/or reimbursed and excluding excise tax		1.20	%(g)		1.20	%		1.20	%		1.42	%		1.45	%(g)
Net investment income		2.48	%(g)		2.21	%		1.94	%		1.46	%		1.76	%(g)
Supplemental Data
Net assets, end of period (000)	$	15,748		$	2,725		$	1,469		$	2,439		$	311
Portfolio turnover rate(i)(j)		282	%		426	%		424	%		722	%		440	%

^(a)  Commencement of operations.

^(b)  Based on average shares outstanding.

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

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

^(e)  Aggregate 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,									Period from 05/19/15 to 12/31/15
				2018			2017			2016
Investments in underlying funds		0.03	%		0.01	%		0.00	%		0.02	%		0.03	%

^(g)  Annualized.

^(h)  Audit, offering and organization costs were not annualized in the calculation of expense ratios. If these expenses were annualized, the total expenses would have been 2.81%.

⁽ⁱ⁾  Excludes investments underlying the total return swaps.

^(j)  Includes MDRs. Additional information regarding portfolio turnover rate is as follows:

	Six Months Ended 06/30/19 (Unaudited)			Year Ended December 31,									Period from 05/19/15 to 12/31/15
				2018			2017			2016
Portfolio turnover rate (excluding MDRs)(i)		168	%		220	%		251	%		488	%		437	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 41

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Systematic Multi-Strategy Fund (continued)
	Investor C
	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,									Period from 05/19/15(a) to 12/31/15
				2018			2017			2016
Net asset value, beginning of period	$	9.47		$	10.16		$	9.58		$	9.51		$	10.00
Net investment income(b)		0.09			0.20			0.12			0.06			0.05
Net realized and unrealized gain (loss)		0.57			(0.14	)		0.73			0.40			(0.47	)
Net increase (decrease) from investment operations		0.66			0.06			0.85			0.46			(0.42	)
Distributions(c)
From net investment income		(0.04	)		(0.19	)		(0.08	)		(0.07	)		(0.07	)
From net realized gain		—			(0.56	)		(0.19	)		(0.32	)		—
Total distributions		(0.04	)		(0.75	)		(0.27	)		(0.39	)		(0.07	)
Net asset value, end of period	$	10.09		$	9.47		$	10.16		$	9.58		$	9.51
Total Return(d)
Based on net asset value		6.94	%(e)		0.65	%		8.97	%		4.82	%		(4.19	)%(e)
Ratios to Average Net Assets(f)
Total expenses		2.73	%(g)		3.48	%		3.30	%		3.43	%		3.31	%(g)(h)
Total expenses after fees waived and/or reimbursed		1.95	%(g)		1.95	%		1.95	%		2.19	%		2.20	%(g)
Total expenses after fees waived and/or reimbursed and excluding excise tax		1.95	%(g)		1.95	%		1.95	%		2.18	%		2.20	%(g)
Net investment income		1.79	%(g)		2.01	%		1.18	%		0.64	%		0.89	%(g)
Supplemental Data
Net assets, end of period (000)	$	119		$	75		$	67		$	193		$	71
Portfolio turnover rate(i)(j)		282	%		426	%		424	%		722	%		440	%

^(a)  Commencement of operations.

^(b)  Based on average shares outstanding.

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

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

^(e)  Aggregate 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,									Period from 05/19/15 to 12/31/15
				2018			2017			2016
Investments in underlying funds		0.03	%		0.01	%		0.00	%		0.02	%		0.03	%

^(g)  Annualized.

^(h)  Audit, offering and organization costs were not annualized in the calculation of expense ratios. If these expenses were annualized, the total expenses would have been 3.70%.

⁽ⁱ⁾  Excludes investments underlying the total return swaps.

^(j)  Includes MDRs. Additional information regarding portfolio turnover rate is as follows:

	Six Months Ended 06/30/19 (unaudited)			Year Ended December 31,									Period from 05/19/15 to 12/31/15
				2018			2017			2016
Portfolio turnover rate (excluding MDRs)(i)		168	%		220	%		251	%		488	%		437	%

See notes to financial statements.

42 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) 

1. ORGANIZATION

BlackRock Funds IV (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. BlackRock Systematic Multi-Strategy Fund (the “Fund”) (formerly known as BlackRock Alternative Capital Strategies Fund) is a series of the Trust. The Trust is organized as a Massachusetts business trust. The Fund is classified as diversified.

The Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional Shares are sold without a sales charge and only to certain eligible investors. Investor A Shares are generally sold with an initial sales charge, and may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase. Investor C Shares may be subject to a CDSC. Investor A and Investor C Shares bear certain expenses related to shareholder servicing of such shares, and Investor C Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Effective November 8, 2018, the Fund adopted an automatic conversion feature whereby Investor C Shares held for approximately ten years will be automatically converted into Investor A Shares. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).

Share Class	Initial Sales Charge		CDSC			Conversion Privilege
Institutional Shares		No		No		None
Investor A Shares		Yes		No	(a)	None
Investor C Shares		No		Yes		To Investor A Shares after approximately 10 years

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

The 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.

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 the ex-dividend date. 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., dollar rolls, to-be-announced (“TBA”) sale commitments, 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 and paid quarterly. 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.

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 $43,951,757. This change in accounting policy has been made to comply with the newly issues accounting standard and had no impact on accumulated earnings (loss) or the net asset value of the Fund.

NOTESTO FINANCIAL STATEMENTS 43

Notes to Financial Statements  (unaudited) (continued)

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 of Trustees of the Trust (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-traded 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.

• Investments in open-end U.S. mutual funds are valued at net asset value (“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.

• 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.

44 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,

NOTESTO FINANCIAL STATEMENTS 45

Notes to Financial Statements  (unaudited) (continued)

mortgage-related securities issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States, but are supported by the right of the issuer to borrow from the U.S. Treasury.

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

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.

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 on 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 realize gains and losses on these transactions. Mortgage dollar rolls involve the risk that the market value of the securities that a fund is required to purchase may decline below the agreed upon repurchase price of those securities.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The 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

46 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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 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.

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 Asset 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.

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

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

NOTESTO FINANCIAL STATEMENTS 47

Notes to Financial Statements  (unaudited) (continued)

Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.

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

• 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.

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 on the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. The Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Fund from 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 Trust, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”) to provide investment advisory services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

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

Average Daily Net Assets	Investment Advisory Fee
First $1 Billion		0.80	%
$1 Billion — $3 Billion		0.75
$3 Billion — $5 Billion		0.72
$5 Billion— $10 Billion		0.70
Greater than $10 Billion		0.68

48 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

The Manager entered into a sub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of the Manager. The Manager pays BIL for services it provides for that portion of the Fund for which BIL acts as sub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Fund to the Manager.

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

	Service Fees			Distribution Fees
Investor A		0.25	%		—	%
Investor C		0.25			0.75

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 following table shows the class specific service and distribution fees borne directly by each share class of the Fund:

Institutional		Investor A		Investor C		Total
$	—	$	10,590	$	507	$	11,097

Administration:The Trust, on behalf of the Fund, entered into an Administration Agreement with the Manager, an indirect, wholly-owned subsidiary of BlackRock, to provide administrative services. For these services, the Manager receives an administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of the Fund. The administration fee, which is shown as administration in the Statement of Operations, is paid at the annual rates below.

Average Daily Net Assets	Administration Fee
First $500 Million		0.0425	%
$500 Million — $1 Billion		0.0400
$1 Billion — $2 Billion		0.0375
$2 Billion — $4 Billion		0.0350
$4 Billion — $13 Billion		0.0325
Greater than $13 Billion		0.0300

In addition, the Manager charges each of the share classes an administration fee, which is shown as administration – class specific in the Statement of Operations, at an annual rate of 0.02% of the average daily net assets of each respective class.

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

Institutional		Investor A		Investor C		Total
$	5,527	$	847	$	10	$	6,384

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the six months ended June 30, 2019, the Fund did not pay any amounts to affiliates in return for these services.

The Manager maintains a call center that is responsible for providing certain shareholder services to the Fund. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the six months ended June 30, 2019, the Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:

Institutional		Investor A		Investor C		Total
$	80	$	22	$	6	$	108

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:

Institutional		Investor A		Investor C		Total
$	11,084	$	7,656	$	96	$	18,836

Other Fees: For the six months ended June 30, 2019, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares was $63.

For the six months ended June 30, 2019, affiliates received CDSCs of $6 for Investor C Shares.

Expense Limitations, Waivers, Reimbursements, and Recoupments: 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

NOTESTO FINANCIAL STATEMENTS 49

Notes to Financial Statements  (unaudited) (continued)

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 $4,184.

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 Trustees who are not “interested persons” of the Fund, as defined in the 1940 Act (“Independent Trustees”) 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.

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

Institutional		Investor A		Investor C
	0.95%		1.20%		1.95%

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

These amounts waived and/or reimbursed are included in fees waived and/or reimbursed by the Manager, and shown as administration fees waived — class specific and transfer agent fees waived and/or reimbursed — class specific respectively, in the Statement of Operations. For the six months ended June 30, 2019, the amount included in fees waived and/or reimbursed by the Manager was $150,064.

For the six months ended June 30, 2019, the class specific expense waivers were as follows:

	Institutional		Investor A		Investor C		Total
Administration Fees Waived and/or Reimbursed — Class Specific	$	5,527	$	847	$	10	$	6,384
Transfer Agent Fees Waived and/or Reimbursed — Class Specific		11,083		7,656		95		18,834

With respect to the contractual expense limitation, if during the Fund’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) the Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as the Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver described above or any voluntary waivers that may be in effect from time to time.

As of June 30, 2019, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring December 31,
	2019		2020		2021
Fund Level	$	328,778	$	357,002	$	152,253
Institutional		6,911		8,833		16,609
Investor A		4,110		2,869		8,503
Investor C		232		126		106

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 and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

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

50 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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

7. PURCHASES AND SALES

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

	Purchases		Sales
Non-U.S. Government Securities	$	289,712,746	$	201,032,205
U.S. Government Securities		7,016,498		—

For the six months ended June 30, 2019, purchases and sales related to mortgage dollar rolls were $215,435,633 and $119,693,310, 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 the three years ended December 31, 2018 and the period ended December 31, 2015. 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 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	$	155,513,991
Gross unrealized appreciation	$	1,672,617
Gross unrealized depreciation		(700,968	)
Net unrealized appreciation	$	971,649

9. BANK BORROWINGS

The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is 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 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

NOTESTO FINANCIAL STATEMENTS 51

Notes to Financial Statements  (unaudited) (continued)

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 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.

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
Institutional
Shares sold		7,847,224		$	77,308,611			1,501,093		$	14,532,056
Shares issued in reinvestment of distributions		12,218			120,343			41,133			394,564
Shares redeemed		(863,825	)		(8,462,732	)		(752,661	)		(7,258,403	)
Net increase		6,995,617			68,966,222			789,565		$	7,668,217
Investor A
Shares sold		1,400,082		$	13,810,649			172,385		$	1,658,750
Shares issued in reinvestment of distributions		5,634			55,441			15,632			150,031
Shares redeemed		(133,519	)		(1,309,340	)		(44,790	)		(432,737	)
Net increase		1,272,197		$	12,556,750			143,227		$	1,376,044
Investor C
Shares sold		5,188		$	50,840			1,298		$	12,422
Shares issued in reinvestment of distributions		35			349			380			3,648
Shares redeemed		(1,339	)		(13,225	)		(356	)		(3,424	)
Net increase		3,884		$	37,964			1,322		$	12,646
Total Net Increase		8,271,698		$	81,560,936			934,114		$	9,056,907

As of June 30, 2019, shares of the Fund owned by BlackRock HoldCo. 2, Inc., an affiliate of the Fund, were as follows:

Institutional		Investor A		Investor C		Total
	2,497,309		2,001		2,000		2,501,310

52 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 53

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Funds IV (the “Trust”) 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”) between the Trust, on behalf of BlackRock Systematic Multi-Strategy Fund (the “Fund”), a series of the Trust, and BlackRock Advisors, LLC (the “Manager”), the Fund’s investment advisor. The Board also considered the approval of thesub-advisory agreement (the“Sub-Advisory Agreement”) between the Manager and BlackRock International Limited (the“Sub-Advisor”), with respect to the Fund. The Manager and theSub-Advisor are referred to herein as “BlackRock.” The Advisory Agreement and theSub-Advisory Agreement are referred to herein as the “Agreements.”

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 Trust 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 Fund 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 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 Fund. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to the Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management; accounting, administrative and shareholder services; oversight of the 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 the 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) 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 the Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Fund; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock and the 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 the 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 the 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 May 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 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 the Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”), the investment performance of the 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 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 Fund; (g) a summary of aggregate amounts paid by the Fund to BlackRock;(h) sales and redemption data regarding the Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and the Fund’s operations.

At the May Meeting, the Board reviewed materials relating to its consideration of the Agreements. 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

54 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  (continued)

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 performance of the 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 Fund; (d) the 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 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 the 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 the 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 the 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 the 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 the Fund. BlackRock and its affiliates provide the Fund with certain administrative, shareholder and other services (in addition to any such services provided to the Fund by third parties) and officers and other personnel as are necessary for the operations of the Fund. In particular, BlackRock and its affiliates provide the 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, the 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 the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the 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 Fund and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of the Fund. In preparation for the May Meeting, the Board was provided with reports independently prepared by Broadridge, which included a comprehensive analysis of the 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 the Fund as compared to its Performance Peers and certain performance metrics. The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of the 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 theone-year, three-year and since-inception periods reported, the Fund ranked in the first quartile against its Performance Peers.

In light of the Fund’s outcome oriented objective, the Board noted that BlackRock believes that certain other performance metrics may be more appropriate than the Performance Peers, and that BlackRock has explained its rationale for this belief to the Board. The Board was provided with a comparison of Fund performance relative to these metrics. Under these metrics, for theone-year, three-year, and since-inception 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 target range for each of the 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 Fund: The Board, including the Independent Board Members, reviewed the Fund’s contractual management fee rate compared with

DISCLOSUREOF INVESTMENT ADVISORY AGREEMENTAND SUB-ADVISORY AGREEMENT 55

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  (continued)

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 the 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 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 the Fund. The Board reviewed BlackRock’s estimated profitability with respect to the 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 the Fund by BlackRock, and BlackRock’s and its affiliates’ estimated profits relating to the management of the 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 Fund, to the 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 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 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 second quartiles, respectively, relative to the Fund’s Expense Peers. The Board further noted that the Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Fund increases above certain contractually specified levels. The Board noted that if the size of the Fund were to decrease, the Fund could lose the benefit of one or more breakpoints. 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.

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 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 the 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 Fund to more fully participate in these economies of scale. The Board considered the 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 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 the 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.

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 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, approved the continuation of the Advisory Agreement between the Manager and the Trust, on behalf of the Fund, for aone-year term ending June 30, 2020, and theSub-Advisory Agreement between the Manager and theSub-Advisor, with respect to the 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 Agreements were fair and reasonable and in the best interest of the Fund 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.

56 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Trustee and Officer Information

Richard E. Cavanagh, Co-Chair of the Board and Trustee

Karen P. Robards, Co-Chair of the Board and Trustee

Michael J. Castellano, Trustee

Cynthia L. Egan, Trustee

Frank J. Fabozzi, Trustee

Henry Gabbay, Trustee

R. Glenn Hubbard, Trustee

W. Carl Kester, Trustee

Catherine A. Lynch, Trustee

Robert Fairbairn, Trustee

John M. Perlowski, Trustee, 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-Adviser

BlackRock International Limited

Edinburgh, EH3 8BL

United Kingdom

Accounting Agent and Custodian

State Street Bank and Trust Company

Boston, MA 02111

Distributor

BlackRock Investments, LLC

New York, NY 10022

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

TRUSTEEAND OFFICER INFORMATION 57

Additional Information

General Information

Householding

The Fund 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 Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund files its complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Fund’s Forms N-PORT andN-Q are available on the SEC’s website at http://www.sec.gov. The Fund’s Forms N-PORT and N-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 Fund uses to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 441-7762; (2) athttp://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Fund voted proxies relating to securities held in the Fund’s portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) athttp://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income and tax-exempt investing. Visithttp://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 athttp://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.

58 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Additional Information  (continued)

BlackRock Privacy Principles

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

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

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

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

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

Glossary of Terms Used in this Report Currency
CAD	Canadian Dollar
HKD	Hong Kong Dollar
SGD	Singapore Dollar
USD	United States Dollar

Portfolio Abbreviations
EURIBOR	Euro Interbank Offered Rate
HIBOR	Hong Kong Interbank Offered Rate
JIBAR	Johannesburg Interbank Average Rate
LIBOR	London Interbank Offered Rate
MSCI	Morgan Stanley Capital International
NVDR	Non-voting Depository Receipts
OTC	Over-the-Counter
PCL	Public Company Limited
SIBOR	Singapore Interbank Offered Rate
STIBOR	Stockholm Interbank Offered Rate

ADDITIONAL INFORMATION / GLOSSARYOF TERMS USEDINTHIS REPORT 59

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

SMS-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 FormN-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers ofClosed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities byClosed-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 Rule30a-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 Rule30a-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 Rule30a-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 forClosed-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

2

(a)(4) – Not Applicable

(b) – Certifications – Attached hereto

3

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Funds IV
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of BlackRock Funds IV

Date: September 3, 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 Funds IV

Date: September 3, 2019

By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of BlackRock Funds IV

Date: September 3, 2019

4