BlackRock Funds V 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:811-22061

Name of Fund: BlackRock Funds V

BlackRock Core Bond Portfolio

BlackRock Credit Strategies Income Fund

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRock U.S. Government Bond Portfolio

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

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

52^nd Street, New York, NY 10055

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

Date of fiscal year end: 09/30/2019

Date of reporting period: 03/31/2019

Item 1 – Report to Stockholders

MARCH 31, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Funds V

^Ø  BlackRock Credit Strategies Income Fund

^Ø  BlackRock GNMA Portfolio

^Ø  BlackRock U.S. Government Bond Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each 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,

In the 12 months ended March 31, 2019, the U.S. equity and bond markets posted positive returns while weathering significant volatility. Though the market’s appetite for risk remained healthy for most of the reporting period, risk taking declined sharply in late 2018. Thereafter, global equity markets rebounded strongly, as inflation diminished and the U.S. Federal Reserve (the “Fed”) announced a shift to less restrictive monetary policy.

Volatility rose in emerging market stocks, 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, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe also led to negative performance for European equities. However, recent economic data indicates that Europe may emerge from its economic soft patch, reinvigorated by a manufacturing rebound and China’s economic stimulus.

Volatility in the U.S. equity market spiked in October, 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 in several countries, including the United States. These risks manifested in a broad-basedsell-off in December, leading to the worst December performance on record since 1931.

By comparison, fixed income securities delivered modest positive returns with relatively low volatility. In fixed income markets, short-term U.S. Treasury yields rose the fastest, while longer-term yields declined slightly. 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.

The Fed increased short-term interest rates three times during the reporting period. For its last two meetings, the Fed left interest rates unchanged and signaled a slower pace of rate hikes in response to the global economic slowdown. Relatively low inflation and modest economic growth give the Fed room to maintain support for the economy until the economic data builds the case for changing interest rates.

Although fears of recession drove equity volatility higher at the end of 2018, we continue to believe the probability of recession in 2019 remains relatively low. Economic growth and global earnings are likely to slow somewhat in 2019 because the tax cut stimulus will be less pronounced, and the Fed’s rate hikes in 2018 will gain traction in 2019. We expect profit margins to continue to contract, which tends to happen late in the business cycle.

In addition, trade frictions look more baked into asset prices than a year ago, but markets may be overlooking European political risks. As Brexit moves forward, the United Kingdom and the European Union may face significant obstacles. Most recently, Britain’s Parliament voted to extend the deadline for the separation, as policy makers continue to seek the least disruptive ways to disentangle Europe’s second-largest economy from the European Union. U.S. and emerging market equities remain relatively attractive. Within U.S. equities, we believe that companies with high-quality earnings and strong balance sheets offer the most attractive risk/rewardtrade-off.

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 March 31, 2019
	6-month	12-month
U.S. large cap equities (S&P 500® Index)	(1.72)%	9.50%
U.S. small cap equities (Russell 2000® Index)	(8.56)	2.05
International equities (MSCI Europe, Australasia, Far East Index)	(3.81)	(3.71)
Emerging market equities (MSCI Emerging Markets Index)	1.71	(7.41)
3-month Treasury bills (ICE BofAML3-Month U.S. Treasury Bill Index)	1.17	2.12
U.S. Treasury securities (ICE BofAML10-Year U.S. Treasury Index)	7.08	5.59
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	4.63	4.48
Tax-exempt municipal bonds (S&P Municipal Bond Index)	4.32	5.12
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	2.39	5.93
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:
Fund Summaries		4
About Fund Performance		10
Disclosure of Expenses		11
The Benefits and Risks of Leveraging		11
Derivative Financial Instruments		11
Financial Statements:
Schedules of Investments		12
Statements of Assets and Liabilities		66
Statements of Operations		68
Statements of Changes in Net Assets		69
Statement of Cash Flows		71
Financial Highlights		73
Notes to Financial Statements		89
Trustee and Officer Information		108
Additional Information		109
Glossary of Terms Used in this Report		111

3

Fund Summary  as of March 31, 2019 BlackRock Credit Strategies Income Fund

Investment Objective

BlackRock Credit Strategies Income Fund’s (the “Fund”) investment objective is to seek to provide high current income, with a secondary objective of long-term capital appreciation.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended March 31, 2019, the Fund underperformed its Customized Reference Benchmark. The Customized Reference Benchmark is comprised of the returns of the Bloomberg Barclays Global High Yield 100% Hedged USD Index (25%), S&P/LSTA Leveraged Loan Index (25%), Bloomberg Barclays U.S. CMBS Investment Grade Index (25%), and JPMorgan Corporate Emerging Markets Bond Index Broad Diversified (CEMBI Broad Diversified) (25%). The Fund is not managed with reference to the current performance benchmark and its exposures may deviate meaningfully.

What factors influenced performance?

During thesix-month period, detractors from Fund performance were limited. Exposure to European high yield corporate issuers primarily had a negative impact on Fund performance, as did certain instruments employed to manage downside protection.

The Fund’s exposure to emerging markets made the largest contribution to performance. In addition, the Fund’s positioning with respect to duration (sensitivity to interest rate changes) added to performance. Allocations to U.S. investment grade and high yield corporates helped Fund performance, as did exposure to preferred securities. Holdings of commercial mortgage-backed securities and European investment grade corporate securities contributed positively, to a lesser degree.

The Fund held an above-average cash position throughout the period, which was used to help manage duration. The Fund’s cash balance did not have a material impact on Fund performance for thesix-month period.

Describe recent portfolio activity.

The period was notable for a pickup in market volatility toward the end of 2018, followed by a strong rally in risk assets during the first quarter of 2019. Overall, investors were rewarded for holding risk assets, and the Fund underwent a few positioning changes. As interest rates continued to decline over the period, the Fund reduced exposure to U.S. Treasuries and added to its holdings within emerging markets, particularly in Asia. The Fund also reduced its exposure to European assets as the region continues to struggle with growth as well as geopolitical issues.

Describe portfolio positioning at period end.

The Fund ended the period with a lower duration profile relative to both its historic range and the start of the period. The Fund continued to hold meaningful allocations to high yield corporate bonds and floating rate loan interests, and held exposure to emerging markets at the high end of its historic range.

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

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
Corporate Bonds		54	%
Floating Rate Loan Interests		21
Asset-Backed Securities		11
Investment Companies		5
U.S. Treasury Obligations		3
Non-Agency Mortgage-Backed Securities		2
Foreign Agency Obligations		2
Foreign Government Obligations		1
Preferred Securities		1
Common Stocks		—	(b)
U.S. Government Sponsored Agency Obligations		—	(b)
Other Interests		—	(b)

^(a)  Total investments exclude short-term securities, options purchased and options written.

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

CREDIT QUALITY ALLOCATION ^(a)

Credit Rating	Percent of Total Investments (b)
AAA/Aaa(c)		4	%
AA/Aa		—	(d)
A		6
BBB/Baa		22
BB/Ba		25
B		26
CCC/Caa		2
NR		15

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

^(b)  Total Investments exclude short-term securities, options purchased and options written.

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

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

4 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2019 (continued) BlackRock Credit Strategies Income Fund

Performance Summary for the Period Ended March 31, 2019

										Average Annual Total Returns (a)(b)
										1 Year						5 Years						Since Inception (c)
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		4.62	%		4.47	%		2.36	%		4.16	%		N/A			3.91	%		N/A			5.10	%		N/A
Investor A		4.26			4.10			2.24			3.90			1.31	%		3.65			3.13	%		4.84			4.55	%
Investor C		3.62			3.46			1.96			3.23			2.24			2.90			2.90			4.07			4.07
Class K		4.67			4.56			2.39			4.21			N/A			3.94			N/A			5.11			N/A
S&P/LSTA Leveraged Loan Index(d)		—			—			0.40			2.97			N/A			3.62			N/A			4.75			N/A
Bloomberg Barclays Global High Yield 100% Hedged USD Index(e)		—			—			3.42			4.54			N/A			5.18			N/A			7.75			N/A
Bloomberg Barclays U.S. CMBS Investment Grade Index(f)		—			—			5.02			5.43			N/A			2.84			N/A			4.83			N/A
JPMorgan CEMBI Broad Diversified Index(g)		—			—			5.11			4.60			N/A			4.83			N/A			5.85			N/A
Customized Reference Benchmark(h)		—			—			3.50			4.42			N/A			4.14			N/A			5.82			N/A

^(a)  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 10 for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

^(b)  Under normal market conditions, the Fund invests at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in fixed-income securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Credit Strategies Income Fund (the “Predecessor Fund”), a series of BlackRock Funds II, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Predecessor Fund’s returns between July 2, 2012 and July 1, 2016 are the returns of the Predecessor Fund when it followed different investment objectives and different investment strategies under the name BlackRock Secured Credit Portfolio. The Predecessor Fund’s returns prior to July 2, 2012 are the returns of the Predecessor Fund when it followed different investment objectives and investment strategies under the name BlackRock Multi-Sector Bond Portfolio.

^(c)  The Fund commenced operations on February 26, 2010.

^(d)  Market value-weighted index designed to measure the performance of U.S. leveraged loan market. It mirrors the market-weighted performance of the largest institutional leveraged loans based upon market weightings, spreads and interest payments.

^(e)  Bloomberg Barclays Global High Yield 100% Hedged USD Index is a “hedged” version of the Bloomberg Barclays Global High Yield Index which is a multi-currency flagship measure of the global high yield debt market. The index represents the union of the U.S. High Yield, thePan-European High Yield, and Emerging Markets (EM) Hard Currency High Yield Indices. The high yield and emerging marketssub-components are mutually exclusive.

^(f)  The index measures the market of conduit and fusion CMBS deals with a minimum current deal size of $300mn. The index is divided into two subcomponents: the U.S. Aggregate-eligible component, which contains bonds that are Employee Retirement Income Security Act of 1974, as amended (“ERISA”) eligible under the underwriter’s exemption, and thenon-U.S. Aggregate-eligible component, which consists of bonds that are not ERISA eligible.

^(g)  A market capitalization weighted index consisting of U.S.-dollar-denominated emerging market corporate bonds. According to J.P. Morgan, this index limits the weights of those index countries with larger corporate debt stocks by only including a specified portion of these countries’ eligible current face amounts of debt outstanding.

^(h)  A customized performance benchmark comprised of the returns of the Bloomberg Barclays Global High Yield 100% Hedged USD Index (25%), the S&P/LSTA Leveraged Loan Index (25%), the Bloomberg Barclays U.S. CMBS Investment Grade Index (25%) and the JPMorgan Corporate Emerging Markets Bond Index Broad Diversified (CEMBI Broad Diversified) (25%).

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 (a)
	Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,023.60	$	3.13	$	1,000.00	$	1,021.84	$	3.13		0.62	%
Investor A		1,000.00		1,022.40		4.39		1,000.00		1,020.59		4.38		0.87
Investor C		1,000.00		1,019.60		8.16		1,000.00		1,016.85		8.15		1.62
Class K		1,000.00		1,023.90		2.88		1,000.00		1,022.09		2.87		0.57

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

^(b)  For each class of the Fund, expenses are equal to annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on Page 11 for further information on how expenses were calculated.

FUND SUMMARY 5

Fund Summary  as of March 31, 2019 BlackRock GNMA Portfolio

Investment Objective

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

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended March 31, 2019, the Fund underperformed the benchmark, the Bloomberg Barclays GNMA MBS Index.

What factors influenced performance?

The most significant detractors from the Fund’s performance included an overweight to higher coupon30-year agency mortgage-backed securities (“MBS”) relative to lower coupon30-year agency MBS. Positioning with respect to overall portfolio duration and corresponding interest rate sensitivity weighed on Fund returns, as did positioning along the yield curve.

The largest positive contributors to the Fund’s performance includedout-of-benchmark allocations to agency commercial mortgage-backed securities (“CMBS”) and agency collateralized mortgage-obligations (“CMOs”). An overweight position within30-year agency MBS also added to performance.

Describe recent portfolio activity.

Over the period, the Fund decreased its allocation to agency MBS, by trimming exposure to both passthrough securities and CMOs. The Fund increased its allocation to agency CMBS during the period given valuations, which were attractive versuslow-coupon MBS. The Fund maintained small allocations to agency mortgage interest-only (“IO”) and inverse IO instruments, as well as to treasury inflation-protected securities (“TIPS”).

During the period, the Fund held a small percentage of assets in derivatives including futures contracts as a means to manage risk against allocations to securitized assets. The use of derivatives had a negative impact on Fund performance.

Describe portfolio positioning at period end.

The Fund maintained an overweight to agency MBS, concentrated in higher coupon Ginnie Mae issues and deeply seasoned, higher coupon30-year conventional MBS. The Fund continued to hold an allocation to agency CMOs with prepayment protected, seasoned collateral as well asout-of-benchmark allocations in government-guaranteed, agency CMBS. Within CMBS, the Fund continued to favor sectors such as agency IOs. Finally, the Fund ended the period modestly with a short duration relative to the benchmark.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.

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

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
U.S. Government Sponsored Agency Obligations		99	%
U.S. Treasury Obligations		1
Non-Agency Mortgage-Backed Securities		—	(b)

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

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

CREDIT QUALITY ALLOCATION ^(a)

Credit Rating	Percent of Total Investments (b)
AAA/Aaa(c)		100	%
AA/Aa		—	(d)

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

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

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

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

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2019 (continued) BlackRock GNMA Portfolio

Performance Summary for the Period Ended March 31, 2019

										Average Annual Total Returns (a)(b)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		3.55	%		3.35	%		3.59	%		3.92	%		N/A			2.12	%		N/A			3.23	%		N/A
Service		3.30			3.08			3.35			3.66			N/A			1.79			N/A			2.89			N/A
Investor A		3.17			2.94			3.45			3.77			(0.38	)%		1.80			0.97	%		2.89			2.47	%
Investor C		2.56			2.33			3.08			3.00			2.00			1.06			1.06			2.12			2.12
Class K		3.60			3.47			3.62			4.08			N/A			2.16			N/A			3.26			N/A
Bloomberg Barclays GNMA MBS Index(c)		—			—			4.08			4.46			N/A			2.41			N/A			3.16			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 10 for a detailed description of share classes, including any related sales charges and fees.

^(b)  Under normal circumstances, the Fund invests at least 80% of its assets in GNMA securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock GNMA Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(c)  An unmanaged index comprised of mortgage-backed pass through securities of GNMA.

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 (a)
					Including Interest Expense		Excluding Interest Expense				Including Interest Expense				Excluding Interest Expense
	Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Ending Account Value (03/31/19)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,035.90	$	5.48	$	2.13	$	1,000.00	$	1,019.55	$	5.44	$	1,022.84	$	2.12
Service		1,000.00		1,033.50		6.75		3.40		1,000.00		1,018.30		6.69		1,021.59		3.38
Investor A		1,000.00		1,034.50		6.75		3.40		1,000.00		1,018.30		6.69		1,021.59		3.38
Investor C		1,000.00		1,030.80		10.53		7.19		1,000.00		1,014.56		10.45		1,017.85		7.14
Class K		1,000.00		1,036.20		5.23		1.88		1,000.00		1,019.80		5.19		1,023.09		1.87

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

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.08% for Institutional, 1.33% for Service, 1.33% for Investor A, 2.08% for Investor C and 1.03% for Class K), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.42% for Institutional, 0.67% for Service, 0.67% for Investor A, 1.42% for Investor C and 0.37% for Class K), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on Page 11 for further information on how expenses were calculated.

FUND SUMMARY 7

Fund Summary  as of March 31, 2019 BlackRock U.S. Government Bond Portfolio

Investment Objective

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

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended March 31, 2019, the Fund underperformed its benchmark, the Bloomberg Barclays U.S. Government/Mortgage Index.

What factors influenced performance?

The most significant detractors from performance relative to the benchmark included the Fund’s stance with respect to duration and corresponding interest rate sensitivity, as well as positioning along the yield curve. An allocation to five-year Treasury inflation-protected securities weighed on return as inflation expectations declined in late 2018. Finally, the Fund’s underweight to30-year agency mortgage-backed securities (“MBS”) detracted as well.

Positive contributions to the Fund’s performance relative to the benchmark were led byout-of-benchmark allocations to commercial mortgage-backed securities (“CMBS”) and agency collateralized mortgage obligations (“CMOs”). Security selection within30-year agency MBS added to relative performance. The Fund’s positioning with respect to global interest rates and currencies was also additive.

Describe recent portfolio activity.

Over thesix-month period the Fund decreased its allocation to agency MBS, primarily by reducing exposure to pass-throughs. The Fund also modestly trimmed its allocations to U.S. Treasuries and collateralized loan obligations (“CLOs”). The Fund increased its allocation to CMBS during the period given valuations, which were attractive versus low coupon MBS with a focus on senior AAA “last cash flow” securities.

Describe portfolio positioning at period end.

The Fund was underweight in agency MBS relative to the benchmark, with exposures continuing to favor higher coupons relative to lower coupons. The Fund continues to hold a core allocation to CMBS and agency CMOs designed to benefit the income and interest rate sensitivity of the Fund. At the end of the period, the Fund had a neutral duration stance while being positioned along the curve with a modest steepening bias. Outside of the United States, the portfolio had an allocation to local currency emerging market sovereign debt in Asian, Latin American and Central European countries on the view that local currency rates were of better value than their hard currency counterparts and that these countries were showing improving fundamentals and would benefit near term from the Fed putting rate hikes on hold. The Fund also held a modest tactical long duration position at thefront-end of Canada’s yield curve in anticipation of dovish Bank of Canada messaging. Within European rates, the Fund was positioned to benefit from higher-than-expected U.K. inflation on the view that the outcome of Brexit will be more benign than what is currently priced in by the markets.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.

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

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
U.S. Government Sponsored Agency Obligations		51	%
U.S. Treasury Obligations		44
Non-Agency Mortgage-Backed Securities		3
Asset-Backed Securities		1
Foreign Government Obligations		1
Foreign Agency Obligations		—	(b)

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

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

CREDIT QUALITY ALLOCATION ^(a)

Credit Rating	Percent of Total Investments (b)
AAA/Aaa(c)		98	%
AA/Aa		—	(d)
A		—	(d)
BBB/Baa		1
BB/Ba		—	(d)
NR		1

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

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

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

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

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2019 (continued) BlackRock U.S. Government Bond Portfolio

Performance Summary for the Period Ended March 31, 2019

										Average Annual Total Returns (a)(b)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		2.94	%		2.70	%		4.32	%		3.97	%		N/A			2.11	%		N/A			2.79	%		N/A
Service		2.69			2.32			4.09			3.72			N/A			1.89			N/A			2.55			N/A
Investor A		2.58			2.31			4.08			3.71			(0.44	)%		1.83			1.00	%		2.46			2.04	%
Investor C		1.95			1.59			3.80			2.94			1.94			1.05			1.05			1.67			1.67
Investor C1		2.15			1.66			3.80			3.05			N/A			1.24			N/A			1.88			N/A
Class K		2.99			2.83			4.24			4.02			N/A			2.12			N/A			2.80			N/A
Class R		2.45			2.02			3.95			3.45			N/A			1.56			N/A			2.21			N/A
Bloomberg Barclays U.S. Government/Mortgage Index(c)		—			—			4.53			4.30			N/A			2.36			N/A			2.75			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 10 for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

^(b)  Under normal circumstances, the Fund invests at least 80% of its assets in bonds that are issued or guaranteed by the U.S. Government and its agencies. The Fund invests primarily in the highest rated government and agency bonds and maintains an average portfolio duration that is within ±20% of the duration of the Bloomberg Barclays U.S. Government/Mortgage Index (the benchmark). On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock U.S. Government Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

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

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 (a)
					Including Interest Expense		Excluding Interest Expense				Including Interest Expense				Excluding Interest Expense
	Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Ending Account Value (03/31/19)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,043.20	$	5.45	$	2.29	$	1,000.00	$	1,019.60	$	5.39	$	1,022.69	$	2.27
Service		1,000.00		1,040.90		6.72		3.56		1,000.00		1,018.35		6.64		1,021.44		3.53
Investor A		1,000.00		1,040.80		6.72		3.56		1,000.00		1,018.35		6.64		1,021.44		3.53
Investor C		1,000.00		1,038.00		10.52		7.37		1,000.00		1,014.61		10.40		1,017.70		7.29
Investor C1		1,000.00		1,038.00		9.50		6.35		1,000.00		1,015.61		9.40		1,018.70		6.29
Class K		1,000.00		1,042.40		5.19		2.04		1,000.00		1,019.85		5.14		1,022.94		2.02
Class R		1,000.00		1,039.50		7.98		4.83		1,000.00		1,017.10		7.90		1,020.19		4.78

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

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.07% for Institutional, 1.32% for Service, 1.32% for Investor A, 2.07% for Investor C, 1.87% for Investor C1, 1.02% for Class K and 1.57% for Class R), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.45% for Institutional, 0.70% for Service, 0.70% for Investor A, 1.45% for Investor C, 1.25% for Investor C1, 0.40% for Class K and 0.95% for Class R), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on Page 11 for further information on how expenses were calculated.

FUND SUMMARY 9

About Fund Performance

Institutional and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors. Prior to BlackRock Credit Strategies Income Fund’s Class K Shares inception date of August 1, 2016, Class K Share performance shown is that of Institutional Shares. The performance of BlackRock Credit Strategies Income Fund’s Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.

Service Shares(available only in GNMA Portfolio and U.S. Government Bond Portfolio) are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee) and are only available to certain eligible investors.

Investor A Sharesare subject to a maximum initial sales charge(front-end load) of 4.00% for all Funds included in this report, except for Credit Strategies Income Fund (which is subject to an initial sales charge of 2.50%), 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 Sharesare 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, each Fund adopted an automatic conversion feature whereby Investor C Shares held for approximately ten years will be automatically converted into Investor A Shares, and, thereafter, investors will be subject to lower ongoing fees.

Investor C1 Shares(available only in U.S. Government Bond Portfolio) are subject to a 1.00% CDSC if redeemed within one year of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through the reinvestment of dividends and capital gains by existing shareholders. In addition, these shares are subject to a distribution fee of 0.55% per year and a service fee of 0.25% per year. Prior to July 18, 2011, U.S. Government Bond Portfolio’s Investor C1 Shares performance results are those of Institutional Shares (which have no distribution or service fees) restated to reflect Investor C1 Shares fees. Investor C1 Shares of U.S. Government Bond Portfolio are only available for dividend and capital gain reinvestment by existing shareholders and for purchase by certain employer-sponsored retirement plans. Effective November 8, 2018, the U.S. Government Bond Portfolio adopted an automatic conversion feature whereby Investor C1 Shares held for approximately ten years will be automatically converted into Investor A Shares, and, thereafter, investors will be subject to lower ongoing fees.

Class R Shares(available only in U.S. Government Bond Portfolio) are not subject to any sales charge. These shares are subject to a distribution fee of 0.25% per year and a service fee of 0.25% per year. These shares are available only to certain employer-sponsored retirement plans. Prior to July 18, 2011, U.S. Government Bond Portfolio’s Class R Shares performance results are those of Institutional Shares (which have no distribution or service fees) restated to reflect Class R Shares fees.

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 recentmonth-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 tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on theex-dividend date/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”), each Fund’s investment adviser, has contractually agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver and/or reimbursement, each 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. The standardized30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized30-day yield excludes the effects of any waivers and/or reimbursements.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Disclosure of Expenses

Shareholders of each 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, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples shown on the previous pages (which are based on a hypothetical investment of $1,000 invested on October 1, 2018 and held through March 31, 2019) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance returns and NAV. However, there is no guarantee that these objectives can be achieved in all interest rate environments.

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

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

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

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

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

Derivative Financial Instruments

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

DISCLOSUREOF EXPENSES / THE BENEFITSAND RISKSOF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS 11

Schedule of Investments  (unaudited) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 10.0%
AIMCO CLO, Series2017-AA, Class C, (LIBOR USD 3 Month + 2.45%), 5.21%, 07/20/29(a)(b)	USD		1,000	$	994,201
Ajax Mortgage Loan Trust(b)(c):
Series2018-E, Class A, 4.38%, 06/25/58			2,982		3,004,135
Series2018-F, Class A, 4.38%, 11/25/58(d)			3,379		3,395,485
Series2018-G, Class A, 4.38%, 06/25/57(d)			3,600		3,584,214
Allegro CLOII-S Ltd., Series2014-1RA, Class B, (LIBOR USD 3 Month + 2.15%), 4.91%, 10/21/28(a)(b)			1,000		991,120
ALM VII Ltd.(a)(b):
Series2012-7A, Class A1R, (LIBOR USD 3 Month + 1.48%), 4.27%, 10/15/28			1,000		1,000,843
Series2012-7A, Class BR, (LIBOR USD 3 Month + 2.50%), 5.29%, 10/15/28			1,000		993,310
Series2012-7A, Class CR, (LIBOR USD 3 Month + 3.85%), 6.64%, 10/15/28			1,000		999,759
ALM VIII Ltd., Series2013-8A, Class CR, (LIBOR USD 3 Month + 3.95%), 6.74%, 10/15/28(a)(b)			1,000		999,767
ALM XVI Ltd.(a)(b):
Series2015-16A, Class BR2, (LIBOR USD 3 Month + 1.90%), 4.69%, 07/15/27			1,200		1,176,692
Series2015-16A, Class CR2, (LIBOR USD 3 Month + 2.70%), 5.49%, 07/15/27			1,000		980,450
AMMC CLO 19 Ltd., Series2016-19A, Class D, (LIBOR USD 3 Month + 3.75%), 6.54%, 10/15/28(a)(b)			500		499,105
Anchorage Capital CLO4-R Ltd.(a)(b):
Series2014-4RA, Class C, (LIBOR USD 3 Month + 1.85%), 4.61%, 01/28/31			1,000		964,399
Series2014-4RA, Class D, (LIBOR USD 3 Month + 2.60%), 5.36%, 01/28/31			1,000		952,571
Anchorage Capital CLO Ltd., Series2013-1A, Class CR, (LIBOR USD 3 Month + 3.20%), 6.00%, 10/13/30(a)(b)			1,000		992,368
Anchorage Capital Europe CLO 2 DAC, Series 2X, Class E, (EURIBOR 3 Month + 5.66%), 5.66%, 05/15/31(a)	EUR		140		151,427
Apidos CLO XX(a)(b):
Series2015-20A, Class BRR, (LIBOR USD 3 Month + 1.95%), 4.73%, 07/16/31	USD		1,000		967,744
Series2015-20A, Class CR, (LIBOR USD 3 Month + 2.95%), 5.73%, 07/16/31			1,000		972,153
Arbour CLO IV DAC, Series 4X, Class E, (EURIBOR 3 Month + 5.60%), 5.60%, 01/15/30(a)	EUR		183		203,035
Ares European CLO VIII BV, Series 8X, Class E, (EURIBOR 3 Month + 6.35%), 6.35%, 02/17/30(a)			200		225,264
Ares XLII CLO Ltd., Series2017-42A, Class D, (LIBOR USD 3 Month + 3.45%), 6.21%, 01/22/28(a)(b)	USD		1,000		1,000,014
Ares XLIX CLO Ltd., Series2018-49A, Class D, (LIBOR USD 3 Month + 3.00%), 5.76%, 07/22/30(a)(b)			1,000		969,178
Ares XXVII CLO Ltd., Series2013-2A, Class DR, (LIBOR USD 3 Month + 3.75%), 6.51%, 07/28/29(a)(b)			2,000		2,000,038
Ares XXXVII CLO Ltd.(a)(b):
Series2015-4A, Class BR, (LIBOR USD 3 Month + 1.80%), 4.59%, 10/15/30			250		240,902
Series2015-4A, Class CR, (LIBOR USD 3 Month + 2.65%), 5.44%, 10/15/30			1,000		963,908
Assurant CLO IV Ltd., Series2019-1A, Class D, (LIBOR USD 3 Month + 3.85%), 6.41%, 04/20/30(a)(b)			1,000		999,982
Atlas Senior Loan Fund X Ltd., Series2018-10A, Class D, (LIBOR USD 3 Month + 2.75%), 5.54%, 01/15/31(a)(b)			1,000		930,035
Atrium IX, Series 9A, Class DR, (LIBOR USD 3 Month + 3.60%), 6.23%, 05/28/30(a)(b)			1,000		999,823

Security		Par (000)		Value
Asset-Backed Securities (continued)
Atrium XV(a)(b):
Series 15A, Class D, (LIBOR USD 3 Month + 3.00%), 5.78%, 01/23/31	USD		500	$	489,016
Series 15A, Class E, (LIBOR USD 3 Month + 5.85%), 8.63%, 01/23/31			250		239,875
Avoca CLO XV DAC, Series 15X, Class ER, (EURIBOR 3 Month + 4.13%), 4.13%, 04/15/31(a)	EUR		260		264,073
Ballyrock CLO Ltd., Series2016-1A, Class C, (LIBOR USD 3 Month + 2.70%), 5.49%, 10/15/28(a)(b)	USD		1,000		1,000,956
Benefit Street Partners CLO XII Ltd., Series2017-12A, Class C, (LIBOR USD 3 Month + 3.05%), 5.84%, 10/15/30(a)(b)			1,250		1,228,883
Cadogan Square CLO VIII DAC, Series 8X, Class E, (EURIBOR 3 Month + 6.30%), 6.30%, 01/15/30(a)	EUR		141		158,657
Carlyle Global Market Strategies CLO Ltd.,Series 2016-3A, Class C, (LIBOR USD 3 Month + 4.00%), 6.76%, 10/20/29(a)(b)	USD		1,000		999,788
CBAM Ltd., Series2017-3A, Class E1, (LIBOR USD 3 Month + 6.50%), 9.27%, 10/17/29(a)(b)			1,000		984,805
Cedar Funding II CLO Ltd., Series2013-1A, Class DR, (LIBOR USD 3 Month + 3.60%), 6.20%, 06/09/30(a)(b)			1,000		999,923
Cedar Funding IV CLO Ltd., Series2014-4A, Class DR, (LIBOR USD 3 Month + 3.65%), 6.42%, 07/23/30(a)(b)			1,000		997,339
CGMSE, Series2014-2X, (EURIBOR 3 Month + 5.70%), 5.70%, 11/17/31(a)	EUR		117		127,609
CIFC Funding Ltd.(a)(b):
Series2013-4A, Class DRR, (LIBOR USD 3 Month + 2.80%), 5.56%, 04/27/31	USD		1,000		955,908
Series2017-1A, Class D, (LIBOR USD 3 Month + 3.50%), 6.26%, 04/23/29			1,000		1,000,124
CVC Cordatus Loan Fund VIII DAC(a):
Series 8X, Class E, (EURIBOR 3 Month + 5.70%), 5.70%, 04/23/30	EUR		200		221,336
Series 8X, Class F, (EURIBOR 3 Month + 7.65%), 4.90%, 04/23/30			113		119,437
Dryden 32 Euro CLO BV, Series2014-32X, Class ER, (EURIBOR 3 Month + 5.29%), 5.29%, 08/15/31(a)			140		149,485
Dryden 50 Senior Loan Fund, Series2017-50A, Class C, (LIBOR USD 3 Month + 2.25%), 5.04%, 07/15/30(a)(b)	USD		2,000		1,972,713
Euro-Galaxy V CLO BV, Series2016-5X, Class E, (EURIBOR 3 Month + 6.30%), 6.30%, 11/10/30(a)	EUR		100		112,455
Galaxy XVIII CLO Ltd., Series2018-28A, Class C, (LIBOR USD 3 Month + 1.95%), 4.74%, 07/15/31(a)(b)	USD		500		482,643
Galaxy XXV CLO Ltd., Series2018-25A, Class D, (LIBOR USD 3 Month + 3.10%), 5.44%, 10/25/31(a)(b)			850		830,420
GoldentTree Loan Management US CLO 1 Ltd.,Series 2017-1A, Class D, (LIBOR USD 3 Month + 3.35%), 6.11%, 04/20/29(a)(b)			2,000		1,996,891
Greywolf CLO V Ltd., Series2015-1A, Class CR, (LIBOR USD 3 Month + 3.00%), 5.77%, 01/27/31(a)(b)			1,000		948,389
Harvest CLO XVI DAC, Series 16X, Class ER, (EURIBOR 3 Month + 5.57%), 5.57%, 10/15/31(a)	EUR		330		353,937
Jay Park CLO Ltd., Series2016-1A, Class CR, (LIBOR USD 3 Month + 2.65%), 5.41%, 10/20/27(a)(b)	USD		1,000		965,604
LCM XV LP, Series 15A, Class CR, (LIBOR USD 3 Month + 2.40%), 5.16%, 07/20/30(a)(b)			1,000		999,377
LCM XXIV Ltd., Series 24A, Class C, (LIBOR USD 3 Month + 2.25%), 5.01%, 03/20/30(a)(b)			1,000		984,229

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Madison Park Funding X Ltd.(a)(b):
Series2012-10A, Class AR, (LIBOR USD 3 Month + 1.45%), 4.21%, 01/20/29	USD		1,000	$	1,000,842
Series2012-10A, Class DR, (LIBOR USD 3 Month + 4.20%), 6.96%, 01/20/29			1,000		1,000,047
Series2012-10A, Class ER, (LIBOR USD 3 Month + 7.62%), 10.38%, 01/20/29			500		498,488
Madison Park Funding XIII Ltd., Series2014-13A, Class DR2, (LIBOR USD 3 Month + 2.85%), 5.61%, 04/19/30(a)(b)			1,000		975,450
Madison Park Funding XV Ltd., Series2014-15A, Class CR, (LIBOR USD 3 Month + 3.45%), 6.21%, 01/27/26(a)(b)			1,000		999,837
Marble Point CLO XI Ltd., Series2017-2A, Class A, (LIBOR USD 3 Month + 1.18%), 3.96%, 12/18/30(a)(b)			1,500		1,486,850
Mariner CLO LLC, Series2015-1A, Class CR, (LIBOR USD 3 Month + 2.50%), 5.26%, 04/20/29(a)(b)			2,000		1,995,338
Neuberger Berman CLO XXII Ltd., Series2016-22A, Class CR, (LIBOR USD 3 Month + 2.20%), 4.97%, 10/17/30(a)(b)			1,000		981,051
Neuberger Berman CLO XXIII Ltd., Series2016-23A, Class DR, (LIBOR USD 3 Month + 2.90%), 5.67%, 10/17/27(a)(b)			500		488,990
OCP Euro CLO DAC(a):
Series2017-2X, Class E, (EURIBOR 3 Month + 5.00%), 5.00%, 01/15/32	EUR		148		158,622
Series2017-2X, Class F, (EURIBOR 3 Month + 6.40%), 6.40%, 01/15/32			100		97,872
OCP Euro DAC, Series2017-1X, Class E, (EURIBOR 3 Month + 5.35%), 5.35%, 06/18/30(a)			150		162,434
Octagon Loan Funding Ltd., Series2014-1A, Class DRR, (LIBOR USD 3 Month + 2.90%), 5.58%, 11/18/31(a)(b)	USD		500		482,485
OHA Credit Partners XI Ltd., Series2015-11A, Class DR, (LIBOR USD 3 Month + 2.95%), 5.71%, 01/20/32(a)(b)			500		484,086
Option One Mortgage Loan Trust, Series 2007-FXD1, Class 2A1, 5.87%, 01/25/37(e)			1,342		1,254,939
OZLM Funding IV Ltd., Series2013-4A, Class BR, (LIBOR USD 3 Month + 2.20%), 4.96%, 10/22/30(a)(b)			1,000		968,147
OZLM VI Ltd.(a)(b):
Series2014-6A, Class B1S, (LIBOR USD 3 Month + 2.10%), 4.87%, 04/17/31			1,000		966,923
Series2014-6A, Class CS, (LIBOR USD 3 Month + 3.13%), 5.90%, 04/17/31			1,000		967,862
OZLME BV, Series 1X, Class E, (EURIBOR 3 Month + 6.45%), 6.45%, 01/18/30(a)	EUR		158		177,646
OZLME II DAC, Series 2X, Class E, (EURIBOR 3 Month + 4.90%), 4.90%, 10/15/30(a)			100		104,593
Palmer Square CLO Ltd.(a)(b):
Series2013-2A, Class BRR, (LIBOR USD 3 Month + 2.20%), 4.97%, 10/17/31	USD		750		735,836
Series2015-1A, Class CR, (LIBOR USD 3 Month + 3.50%), 6.14%, 05/21/29			1,000		1,000,112
Regatta VII Funding Ltd., Series2016-1A, Class DR, (LIBOR USD 3 Month + 2.75%), 5.38%, 12/20/28(a)(b)			1,000		971,446

Security		Par (000)		Value
Asset-Backed Securities (continued)
Rockford Tower CLO Ltd.(a)(b):
Series2017-3A, Class A, (LIBOR USD 3 Month + 1.19%), 3.95%, 10/20/30	USD		1,500	$	1,487,472
Series2018-2A, Class C, (LIBOR USD 3 Month + 2.20%), 4.63%, 10/20/31			500		490,065
Series2018-2A, Class D, (LIBOR USD 3 Month + 3.10%), 5.53%, 10/20/31			500		485,313
RRCLO_1X, 5.95%, 04/15/32(c)	EUR		300		324,915
TICP CLO VII Ltd., Series2017-7A, Class C, (LIBOR USD 3 Month + 2.60%), 5.39%, 07/15/29(a)(b)	USD		1,000		1,003,266
TICP CLO XI Ltd.(a)(b):
Series2018-11A, Class C, (LIBOR USD 3 Month + 2.15%), 4.59%, 10/20/31			600		585,022
Series2018-11A, Class D, (LIBOR USD 3 Month + 3.05%), 5.49%, 10/20/31			550		537,248
TXU Escrow, 5.10%, 10/10/17(d)(f)(g)			815		—
Unique Pub Finance Co. plc (The), Series A4, 5.66%, 06/30/27	GBP		73		104,404
Vericrest Opportunity Loan Trust, Series 2019-NPL2, Class A1, 3.97%, 02/25/49(b)(e)	USD		3,272		3,276,582
Voya CLO Ltd., Series2017-1A, Class C, (LIBOR USD 3 Month + 3.33%), 6.10%, 04/17/30(a)(b)			1,000		989,523
York CLO 1 Ltd., Series2014-1A, Class DRR, (LIBOR USD 3 Month + 3.01%), 5.77%, 10/22/29(a)(b)			1,000		970,179
Total Asset-Backed Securities — 10.0% (Cost: $80,887,408)					79,949,679
		Shares
Common Stocks — 0.1%
Capital Markets — 0.0%
New Holdings LLC(d)(g)			48		16,560
Chemicals — 0.1%
Element Solutions, Inc.(g)			38,290		386,729
Commercial Services & Supplies — 0.0%
Preston Holdings LLC(d)(g)			1,227		6,675
Containers & Packaging — 0.0%
Crown Holdings, Inc.(g)			3,374		184,119
Electric Utilities — 0.0%
TexGen Power LLC(d)(g)			1,424		54,824
Equity Real Estate Investment Trusts (REITs) — 0.0%
Gaming and Leisure Properties, Inc.			2,300		88,711
Health Care Providers & Services — 0.0%
New Millennium Holdco, Inc.(g)			3,880		155
Hotels, Restaurants & Leisure — 0.0%
Star Group, Inc. (The)(g)			5,409		94,552
Machinery — 0.0%(g)
AFGlobal Corp.(d)			897		—
Ameriforge Group, Inc.			283		16,131
					16,131
Marine — 0.0%
Projector SA(d)(g)			1,227		—
Media — 0.0%
Altice USA, Inc., Class A			8,386		180,132

SCHEDULES OF INVESTMENTS 13

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Shares		Value
Metals & Mining — 0.0%
Constellium NV, Class A(g)			19,152	$	152,833
Software — 0.0%
Avaya Holdings Corp.(g)			11		185
Textiles, Apparel & Luxury Goods — 0.0%
Levi Strauss & Co., Class A(g)			44		1,036
Total Common Stocks — 0.1% (Cost: $1,306,139)					1,182,642
		Par (000)
Corporate Bonds — 49.8%
Aerospace & Defense — 1.0%
Arconic, Inc.:
5.40%, 04/15/21	USD		4		4,125
5.13%, 10/01/24			528		540,582
BBA US Holdings, Inc., 5.38%, 05/01/26(b)			134		138,020
Bombardier, Inc.(b):
8.75%, 12/01/21			251		277,355
5.75%, 03/15/22			132		135,135
6.00%, 10/15/22			19		19,166
6.13%, 01/15/23			240		243,300
7.50%, 12/01/24			506		525,607
7.50%, 03/15/25			796		818,885
7.88%, 04/15/27			532		548,785
BWX Technologies, Inc., 5.38%, 07/15/26(b)			213		216,195
Kratos Defense & Security Solutions, Inc., 6.50%, 11/30/25(b)			278		292,943
L3 Technologies, Inc., 4.40%, 06/15/28			1,000		1,049,311
Pioneer Holdings LLC, 9.00%, 11/01/22(b)			63		64,087
TransDigm, Inc.:
6.00%, 07/15/22			27		27,439
6.25%, 03/15/26(b)			2,265		2,358,997
6.38%, 06/15/26			61		60,381
7.50%, 03/15/27(b)			29		29,725
United Technologies Corp.:
3.35%, 08/16/21			290		293,880
4.63%, 11/16/48			120		127,305
					7,771,223
Air Freight & Logistics — 0.0%
FedEx Corp., 4.05%, 02/15/48			155		139,102
XPO Logistics, Inc., 6.75%, 08/15/24(b)			7		7,140
					146,242
Airlines — 0.0%
ANA Holdings, Inc.(h)(i):
0.00%, 09/16/22	JPY		10,000		91,198
0.00%, 09/19/24			10,000		92,250
					183,448
Auto Components — 0.6%
Allison Transmission, Inc.(b):
5.00%, 10/01/24	USD		9		8,977
5.88%, 06/01/29			84		84,945
GKN Holdings Ltd.:
5.38%, 09/19/22	GBP		200		278,600
3.38%, 05/12/32			200		255,493
Icahn Enterprises LP:
6.25%, 02/01/22	USD		279		286,212
6.75%, 02/01/24			333		347,153
6.38%, 12/15/25			72		73,710

Security		Par (000)		Value
Auto Components (continued)
IHO Verwaltungs GmbH, 3.25% (3.25% Cash or 4.00% PIK), 09/15/23(j)	EUR		100	$	114,165
LKQ Italia Bondco SpA, 3.88%, 04/01/24			150		179,452
Panther BF Aggregator 2 LP:
4.38%, 05/15/26			534		610,162
6.25%, 05/15/26(b)	USD		689		702,780
8.50%, 05/15/27(b)			701		702,753
Weichai International Hong Kong Energy Group Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 6.08%), 3.75%(a)(k)			200		194,335
ZF North America Capital, Inc., 4.00%, 04/29/20(b)			750		750,392
					4,589,129
Automobiles — 0.3%
Daimler Finance North America LLC, 3.35%, 05/04/21(b)			750		754,614
Fiat Chrysler Finance Europe SA:
6.75%, 10/14/19	EUR		110		127,740
4.75%, 07/15/22			100		124,654
General Motors Co., 5.00%, 10/01/28	USD		1,000		997,411
Tesla, Inc., 5.30%, 08/15/25(b)			146		126,290
					2,130,709
Banks — 4.5%
ABN AMRO Bank NV, (EUR Swap Annual 5 Year + 5.45%), 5.75%(a)(k)	EUR		400		464,494
Allied Irish Banks plc(a):
(EUR Swap Annual 5 Year + 7.34%), 7.38%(k)			400		477,866
(EUR Swap Annual 5 Year + 3.95%), 4.13%, 11/26/25			200		233,517
Banca Carige SpA, 0.75%, 07/26/20			100		112,256
Banco Bilbao Vizcaya Argentaria SA, (EUR Swap Annual 5 Year + 9.18%), 8.88%(a)(k)			200		246,676
Banco BPM SpA:
2.75%, 07/27/20			100		115,167
1.75%, 04/24/23			200		222,109
Banco de Credito del Peru, (LIBOR USD 3 Month + 7.71%), 6.87%, 09/16/26(a)	USD		630		675,596
Banco de Sabadell SA, (EUR Swap Annual 5 Year + 5.10%), 5.38%, 12/12/28(a)	EUR		200		230,201
Banco General SA, 4.13%, 08/07/27	USD		500		491,778
Banco Inbursa SA Institucion de Banca Multiple, 4.13%, 06/06/24			653		644,808
Banco Santander SA:
3.85%, 04/12/23			200		201,703
(EUR Swap Annual 5 Year + 4.10%), 4.75%(a)(k)	EUR		200		194,890
Bank of America Corp., Series L, 4.18%, 11/25/27	USD		2,000		2,030,981
Bank of Ireland(a):
(EUR Swap Annual 5 Year + 6.96%), 7.38%(k)	EUR		200		235,846
(EUR Swap Annual 5 Year + 3.55%), 4.25%, 06/11/24			200		225,584
Bank of Ireland Group plc, 1.38%, 08/29/23			150		168,647
Bankia SA(a)(k):
(EUR Swap Annual 5 Year + 5.82%), 6.00%			400		439,127
(EUR Swap Annual 5 Year + 6.22%), 6.37%			200		219,583
Barclays plc:
4.38%, 09/11/24	USD		200		199,638
(EUR Swap Annual 5 Year + 2.45%), 2.63%, 11/11/25(a)	EUR		200		226,270
(EUR Swap Annual 1 Year + 0.78%), 1.37%, 01/24/26(a)			375		408,910
BBVA Bancomer SA, 4.38%, 04/10/24	USD		650		660,563

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
BNP Paribas SA, (EUR Swap Annual 5 Year + 5.23%), 6.12%(a)(k)	EUR		400	$	489,671
Burgan Senior SPC Ltd., 3.13%, 09/14/21	USD		500		493,750
CaixaBank SA, (EUR Swap Annual 5 Year + 4.50%), 5.25%(a)(k)	EUR		200		196,462
CBQ Finance Ltd., 3.25%, 06/13/21	USD		300		297,375
China Construction Bank Corp., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.88%), 4.25%, 02/27/29(a)			495		500,358
CIT Group, Inc.:
5.00%, 08/01/23			447		468,791
5.25%, 03/07/25			204		217,066
6.13%, 03/09/28			82		91,225
Citigroup, Inc.:
(LIBOR USD 3 Month + 1.02%), 4.04%, 06/01/24(a)			500		516,664
4.30%, 11/20/26			500		508,163
4.45%, 09/29/27			500		513,718
Commerzbank AG:
8.13%, 09/19/23			200		228,053
4.00%, 03/23/26	EUR		150		179,099
Cooperatieve Rabobank UA(a)(k):
(EUR Swap Annual 5 Year + 5.25%), 5.50%			200		232,369
(EUR Swap Annual 5 Year + 6.70%), 6.62%			400		488,337
Credit Agricole SA(a)(k):
(EUR Swap Annual 5 Year + 5.12%), 6.50%			200		239,996
(USD Swap Semi 5 Year + 6.19%), 8.12%(b)	USD		1,500		1,684,728
Discover Bank:
3.20%, 08/09/21			1,000		1,004,713
(USD Swap Semi 5 Year + 1.73%), 4.68%, 08/09/28(a)			465		473,110
Emirates NBD PJSC, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.66%), 6.13%(a)(k)			1,250		1,259,063
Erste Group Bank AG, (EUR Swap Annual 5 Year + 9.02%), 8.88%(a)(k)	EUR		200		255,615
Hongkong & Shanghai Banking Corp. Ltd. (The), Series 3H, (LIBOR USD 3 Month + 0.00%), 2.94%(a)(k)	USD		350		247,478
HSBC Holdings plc(a):
(LIBOR USD 3 Month + 0.65%), 3.25%, 09/11/21			1,000		999,137
(LIBOR USD 3 Month + 0.99%), 3.95%, 05/18/24			285		290,652
ICICI Bank Ltd., 4.00%, 03/18/26			600		596,847
IKB Deutsche Industriebank AG, (EUR Swap Annual 5 Year + 3.62%), 4.00%, 01/31/28(a)	EUR		200		215,427
ING Groep NV, (USD Swap Semi 5 Year + 4.20%), 6.75%(a)(k)	USD		325		321,896
Intercorp Financial Services, Inc., 4.13%, 10/19/27			500		484,068
Intesa Sanpaolo SpA(a)(k):
(EUR Swap Annual 5 Year + 6.88%), 7.00%	EUR		200		233,324
(EUR Swap Annual 5 Year + 7.19%), 7.75%			200		243,134
JPMorgan Chase & Co.:
(LIBOR USD 3 Month + 0.89%), 3.66%, 07/23/24(a)	USD		1,000		997,582
3.63%, 12/01/27			1,500		1,490,419
Macquarie Bank Ltd., (USD Swap Semi 5 Year + 3.70%), 6.13%(a)(b)(k)			1,000		923,300
National Westminster Bank plc, Series C, (LIBOR USD 3 Month + 0.25%), 2.88%(a)(k)			200		156,192
Nordea Bank Abp, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.11%), 6.63%(a)(b)(k)			585		583,538
Royal Bank of Scotland Group plc(a):
(USD Swap Semi 5 Year + 7.60%), 8.62%(k)			995		1,059,675
(LIBOR USD 3 Month + 1.76%), 4.27%, 03/22/25			630		636,700
Santander UK plc, 5.00%, 11/07/23(b)			1,000		1,023,966

Security		Par (000)		Value
Banks (continued)
Shinhan Financial Group Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.05%), 5.87%(a)(k)	USD		1,000	$	1,028,625
Shizuoka Bank Ltd. (The), (LIBOR USD 3 Month - 0.50%), 2.27%, 01/25/23(a)(h)			100		94,583
Societe Generale SA, (USD Swap Semi 5 Year + 6.24%), 7.38%(a)(b)(k)			200		206,250
UniCredit SpA:
(EUR Swap Annual 5 Year + 6.10%), 6.75%(a)(k)	EUR		400		441,328
6.57%, 01/14/22(b)	USD		350		366,246
(EUR Swap Annual 5 Year + 9.30%), 9.25%(a)(k)	EUR		200		247,638
(EUR Swap Annual 5 Year + 4.10%), 5.75%, 10/28/25(a)			400		471,388
(EURIBOR Swap Rate 5 Year + 7.33%), 7.50%(a)(k)			200		229,678
(EUR Swap Annual 5 Year + 4.32%), 4.38%, 01/03/27(a)			200		231,287
Unione di Banche Italiane SpA, (EUR Swap Annual 5 Year + 5.75%), 5.88%, 03/04/29(a)			300		339,904
Wells Fargo & Co.:
3.75%, 01/24/24	USD		1,750		1,800,885
5.38%, 11/02/43			500		562,186
Yes Bank Ifsc Banking Unit Branch, 3.75%, 02/06/23			200		191,043
					36,178,912
Beverages — 0.1%
Anheuser-Busch InBev Worldwide, Inc., 4.60%, 04/15/48			750		720,514
Coca-Cola European Partners plc, (EURIBOR 3 Month + 0.18%), 0.00%, 11/16/21(a)	EUR		100		112,125
Coca-Cola Icecek A/S, 4.22%, 09/19/24	USD		250		233,072
					1,065,711
Biotechnology — 0.2%
AbbVie, Inc.:
3.38%, 11/14/21			680		688,440
4.88%, 11/14/48			500		491,769
					1,180,209
Building Products — 0.2%
CPG Merger Sub LLC, 8.00%, 10/01/21(b)			3		2,985
JELD-WEN, Inc.(b):
4.63%, 12/15/25			35		33,250
4.88%, 12/15/27			6		5,655
LIXIL Group Corp.(h)(i):
0.00%, 03/04/20	JPY		50,000		440,009
0.00%, 03/04/22			30,000		259,966
Masonite International Corp.(b):
5.63%, 03/15/23	USD		175		178,937
5.75%, 09/15/26			148		150,960
PGT Escrow Issuer, Inc., 6.75%, 08/01/26(b)			32		33,200
Standard Industries, Inc.(b):
5.50%, 02/15/23			2		2,035
5.38%, 11/15/24			148		151,700
6.00%, 10/15/25			210		219,889
5.00%, 02/15/27			30		29,034
4.75%, 01/15/28			36		34,380
USG Corp., 4.88%, 06/01/27(b)			169		170,796
					1,712,796
Capital Markets — 1.5%
ADCB Finance Cayman Ltd., 4.00%, 03/29/23(b)			240		243,000
CCTI Ltd., Series 2017, 3.63%, 08/08/22			710		683,847
Cindai Capital Ltd., 0.00%, 02/08/23(h)(i)			900		913,499
Coastal Emerald Ltd., 5.95%, 01/13/20			800		804,000

SCHEDULES OF INVESTMENTS 15

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Capital Markets (continued)
Credit Suisse Group AG(a):
(USD Swap Semi 5 Year + 4.60%), 7.50%(b)(k)	USD		200	$	205,750
(LIBOR USD 3 Month + 1.24%), 4.21%, 06/12/24(b)			1,000		1,024,383
(USD Swap Semi 5 Year + 3.46%), 6.25%(k)			200		199,389
(USD Swap Semi 5 Year + 4.33%), 7.25%(b)(k)			965		968,619
Deutsche Bank AG:
3.15%, 01/22/21			500		492,481
4.25%, 02/04/21			815		818,124
Eagle Holding Co. II LLC, 7.63% (7.63% Cash or 8.38% PIK), 05/15/22(b)(j)			52		52,455
FS Energy & Power Fund, 7.50%, 08/15/23(b)			33		33,846
Huarong Finance Co. Ltd., Series 2017, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 7.77%), 4.50%(a)(k)			2,200		2,188,637
Huarong Universe Investment Holding Ltd., 1.63%, 12/05/22	EUR		300		314,380
Hubei Science & Technology Investment Group Hong Kong Ltd., 4.38%, 03/05/21	USD		200		197,350
Joy Treasure Assets Holdings, Inc., 4.50%, 03/20/29			200		202,813
Lions Gate Capital Holdings LLC(b):
6.38%, 02/01/24			10		10,153
5.88%, 11/01/24			102		104,933
Morgan Stanley, (LIBOR USD 3 Month + 1.63%), 4.43%, 01/23/30(a)			540		568,743
MSCI, Inc., 5.25%, 11/15/24(b)			70		72,436
Poseidon Finance 1 Ltd., 0.00%, 02/01/25(h)(i)			200		191,400
SBI Holdings, Inc., 0.00%, 09/13/23(h)(i)	JPY		110,000		1,045,123
SURA Asset Management SA, 4.88%, 04/17/24	USD		400		414,500
UBS AG, (EURIBOR 3 Month + 0.50%), 0.19%, 04/23/21(a)	EUR		300		338,309
US Airways Pass-Through Trust, Series2013-1, Class B, 5.38%, 11/15/21	USD		104		107,011
					12,195,181
Chemicals — 1.5%
Alpha 2 BV, 8.75% (8.75% Cash or 9.50% PIK), 06/01/23(b)(j)			210		204,225
Alpha 3 BV, 6.25%, 02/01/25(b)			400		386,000
Axalta Coating Systems LLC, 4.88%, 08/15/24(b)			150		150,187
Blue Cube Spinco LLC:
9.75%, 10/15/23			141		156,862
10.00%, 10/15/25			432		494,230
Braskem Netherlands Finance BV, 3.50%, 01/10/23			500		488,643
Chemours Co. (The):
6.63%, 05/15/23			81		83,741
5.38%, 05/15/27			231		229,482
CNAC HK Finbridge Co. Ltd., 4.88%, 03/14/25			1,000		1,054,460
CNAC HK Synbridge Co. Ltd., 5.00%, 05/05/20			730		737,300
Dow Chemical Co. (The), 5.55%, 11/30/48(b)			350		390,224
DowDuPont, Inc., 5.42%, 11/15/48			695		792,781
Element Solutions, Inc., 5.88%, 12/01/25(b)			643		645,315
Equate Petrochemical BV, 4.25%, 11/03/26			400		402,900
Fufeng Group Ltd., 5.88%, 08/28/21			200		204,719
Gates Global LLC, 6.00%, 07/15/22(b)			181		181,708
GCP Applied Technologies, Inc., 5.50%, 04/15/26(b)			123		125,152
INEOS Finance plc, 4.00%, 05/01/23	EUR		135		153,329
Mitsubishi Chemical Holdings Corp.(h)(i):
0.00%, 03/30/22	JPY		40,000		361,177
0.00%, 03/29/24			40,000		363,277
Momentive Performance Materials, Inc., 3.88%, 10/24/21	USD		109		117,447
Monitchem HoldCo 3 SA, 5.25%, 06/15/21	EUR		100		112,035
NOVA Chemicals Corp., 4.88%, 06/01/24(b)	USD		82		80,565

Security		Par (000)		Value
Chemicals (continued)
OCI NV, 5.00%, 04/15/23	EUR		110	$	130,126
Olin Corp.:
5.13%, 09/15/27	USD		100		101,125
5.00%, 02/01/30			33		32,093
Pearl Holding III Ltd., 9.50%, 12/11/22			1,000		814,870
PQ Corp.(b):
6.75%, 11/15/22			322		334,075
5.75%, 12/15/25			279		271,676
Rock International Investment, Inc., 6.63%, 03/27/20			1,200		912,402
Solvay Finance SA(a)(k):
(EUR Swap Annual 5 Year + 4.89%), 5.12%	EUR		300		364,608
(EUR Swap Annual 5 Year + 3.70%), 5.42%			180		227,406
Solvay SA, (EUR Swap Annual 5 Year + 3.92%), 4.25%(a)(k)			100		120,215
UPL Corp. Ltd., 4.50%, 03/08/28	USD		200		195,092
W.R. Grace & Co.-Conn., 5.63%, 10/01/24(b)			70		74,375
WR Grace & Co., 5.13%, 10/01/21(b)			160		165,232
					11,659,054
Commercial Services & Supplies — 1.0%
AA Bond Co. Ltd.:
4.25%, 07/31/20	GBP		100		132,451
2.88%, 01/31/22			100		124,525
4.88%, 07/31/24			160		206,568
ACCO Brands Corp., 5.25%, 12/15/24(b)	USD		47		46,061
ADT Security Corp. (The):
3.50%, 07/15/22			202		194,677
4.13%, 06/15/23			305		294,173
4.88%, 07/15/32(b)			86		69,660
Advanced Disposal Services, Inc., 5.63%, 11/15/24(b)			75		76,500
Algeco Global Finance plc, 8.00%, 02/15/23(b)			200		200,500
APX Group, Inc.:
8.75%, 12/01/20			154		151,690
7.88%, 12/01/22			78		78,187
Aramark Services, Inc.:
5.00%, 04/01/25(b)			229		234,496
4.75%, 06/01/26			97		96,758
5.00%, 02/01/28(b)			333		331,628
Beijing Environment Bvi Co. Ltd., 5.30%, 10/18/21			1,745		1,750,531
GFL Environmental, Inc., 5.38%, 03/01/23(b)			32		30,240
Harland Clarke Holdings Corp., 8.38%, 08/15/22(b)			114		102,794
Hulk Finance Corp., 7.00%, 06/01/26(b)			32		30,320
Intrum AB, 2.75%, 07/15/22	EUR		242		266,975
KAR Auction Services, Inc., 5.13%, 06/01/25(b)	USD		141		139,414
Matthews International Corp., 5.25%, 12/01/25(b)			192		184,320
Mobile Mini, Inc., 5.88%, 07/01/24			323		328,653
Nielsen Co. Luxembourg SARL (The), 5.00%, 02/01/25(b)			21		20,186	��
Nielsen Finance LLC, 5.00%, 04/15/22(b)			346		341,675
Paprec Holding SA, 4.00%, 03/31/25	EUR		102		96,846
Prime Security Services Borrower LLC(b):
9.25%, 05/15/23	USD		476		499,800
5.25%, 04/15/24			200		200,000
5.75%, 04/15/26			223		223,047
Ritchie Bros Auctioneers, Inc., 5.38%, 01/15/25(b)			218		222,360
SPIE SA, 3.13%, 03/22/24	EUR		100		115,116
Star Merger Sub, Inc., 6.88%, 08/15/26(b)	USD		288		294,480
Techem Verwaltungsgesellschaft 674 mbH, 6.00%, 07/30/26	EUR		100		116,050
Tervita Escrow Corp., 7.63%, 12/01/21(b)	USD		86		85,355
Verisure Holding AB, 3.50%, 05/15/23	EUR		214		247,829
Verisure Midholding AB, 5.75%, 12/01/23			150		170,383
Waste Pro USA, Inc., 5.50%, 02/15/26(b)	USD		58		55,825
					7,760,073

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Communications Equipment — 0.2%
CommScope Finance LLC(b):
5.50%, 03/01/24	USD		334	$	341,612
6.00%, 03/01/26			333		344,445
8.25%, 03/01/27			86		89,225
CommScope Technologies LLC(b):
6.00%, 06/15/25			4		3,889
5.00%, 03/15/27			133		117,928
CommScope, Inc., 5.00%, 06/15/21(b)			198		197,852
Nokia OYJ:
3.38%, 06/12/22			32		31,640
2.00%, 03/11/26	EUR		137		152,911
4.38%, 06/12/27	USD		46		45,540
6.63%, 05/15/39			230		245,525
Telefonaktiebolaget LM Ericsson, 1.88%, 03/01/24	EUR		100		114,827
ViaSat, Inc., 5.63%, 04/15/27(b)	USD		209		212,680
					1,898,074
Construction & Engineering — 0.4%
Brand Industrial Services, Inc., 8.50%, 07/15/25(b)			80		71,800
China Railway Construction Corp. Ltd., 1.50%, 12/21/21(h)	CNY		4,000		593,467
China Shandong International Economic & Technical Finance 1 Ltd., 4.00%, 12/21/20	USD		600		583,500
China Singyes Solar Technologies Holdings Ltd., 6.75%, 10/17/19(f)(g)			500		305,000
Hanrui Overseas Investment Co. Ltd., 4.90%, 06/28/19			600		592,050
Heathrow Funding Ltd., 1.88%, 03/14/34	EUR		450		505,794
Leader Goal International Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 6.92%), 4.25%(a)(k)	USD		200		198,447
New Enterprise Stone & Lime Co., Inc.(b):
10.13%, 04/01/22			42		42,525
6.25%, 03/15/26			21		20,425
Novafives SAS, 5.00%, 06/15/25	EUR		100		100,958
Zhaohai Investment BVI Ltd., 4.00%, 07/23/20	USD		200		196,690
					3,210,656
Construction Materials — 0.2%
CEMEX Finance LLC, 4.63%, 06/15/24	EUR		100		117,223
Cemex SAB de CV, 3.13%, 03/19/26			200		224,069
Inversiones CMPC SA, 4.75%, 09/15/24	USD		600		619,500
Taiwan Cement Corp., 0.00%, 12/10/23(h)(i)			800		886,865
					1,847,657
Consumer Finance — 1.1%
AerCap Ireland Capital DAC, 4.50%, 05/15/21			200		204,323
Ally Financial, Inc.:
4.13%, 02/13/22			7		7,061
5.13%, 09/30/24			17		17,872
8.00%, 11/01/31			1,465		1,818,431
CDBL Funding 1, 3.00%, 04/24/23			800		776,294
Credit Acceptance Corp., 6.63%, 03/15/26(b)			64		65,062
Ford Motor Credit Co. LLC:
5.88%, 08/02/21			1,000		1,035,432
4.39%, 01/08/26			500		464,356
General Motors Financial Co., Inc.:
3.55%, 04/09/21			140		140,767
(EURIBOR 3 Month + 0.68%), 0.37%, 05/10/21(a)	EUR		100		112,058
3.20%, 07/06/21	USD		1,000		995,510
4.20%, 11/06/21			475		483,263
LeasePlan Corp. NV, (EURIBOR 3 Month + 0.50%), 0.19%, 01/25/21(a)	EUR		200		223,624
Lincoln Finance Ltd., 6.88%, 04/15/21			100		114,322

Security		Par (000)		Value
Consumer Finance (continued)
Mulhacen Pte. Ltd., 6.50% (6.50% Cash or 7.25% PIK), 08/01/23(j)	EUR		693	$	792,454
Navient Corp.:
5.00%, 10/26/20	USD		29		29,399
6.63%, 07/26/21			53		55,385
6.50%, 06/15/22			12		12,506
5.50%, 01/25/23			307		307,384
7.25%, 09/25/23			107		113,019
5.88%, 10/25/24			64		61,920
6.75%, 06/25/25			40		39,662
6.75%, 06/15/26			32		30,640
New Lion Bridge Co. Ltd., 9.75%, 10/10/20			430		386,678
Springleaf Finance Corp.:
6.13%, 05/15/22			22		22,770
6.13%, 03/15/24			113		115,540
6.88%, 03/15/25			153		157,782
7.13%, 03/15/26			108		109,957
Volkswagen Bank GmbH, (EURIBOR 3 Month + 0.42%), 0.11%, 06/15/21(a)	EUR		100		111,453
Volkswagen Leasing GmbH, 1.13%, 04/04/24			200		222,490
					9,027,414
Containers & Packaging — 0.8%
Ardagh Packaging Finance plc:
4.13%, 05/15/23			200		229,959
4.63%, 05/15/23(b)	USD		400		402,500
6.75%, 05/15/24	EUR		400		475,058
7.25%, 05/15/24(b)	USD		812		855,401
4.75%, 07/15/27	GBP		200		246,489
BWAY Holding Co.:
4.75%, 04/15/24	EUR		299		340,984
5.50%, 04/15/24(b)	USD		740		734,672
Crown Americas LLC:
4.50%, 01/15/23			7		7,070
4.75%, 02/01/26			339		340,627
4.25%, 09/30/26			130		125,613
Crown European Holdings SA:
2.25%, 02/01/23(b)	EUR		100		115,909
3.38%, 05/15/25			100		119,911
Graphic Packaging International LLC, 4.88%, 11/15/22	USD		74		75,480
Greif, Inc., 6.50%, 03/01/27(b)			71		72,597
Horizon Parent Holdings SARL, 8.25% (8.25% Cash or 9.00% PIK), 02/15/22(j)	EUR		100		114,929
Intertape Polymer Group, Inc., 7.00%, 10/15/26(b)	USD		45		46,125
OI European Group BV, 4.00%, 03/15/23(b)			44		43,175
Reynolds Group Issuer, Inc.(b):
(LIBOR USD 3 Month + 3.50%), 6.29%, 07/15/21(a)			205		205,769
5.13%, 07/15/23			121		122,966
7.00%, 07/15/24			333		343,032
Sealed Air Corp.:
4.88%, 12/01/22(b)			322		332,301
4.50%, 09/15/23	EUR		100		125,351
6.88%, 07/15/33(b)	USD		123		132,840
Silgan Holdings, Inc., 3.25%, 03/15/25	EUR		100		115,798
WRKCo, Inc., 4.65%, 03/15/26	USD		795		842,397
					6,566,953
Distributors — 0.2%
American Builders & Contractors Supply Co., Inc.(b):
5.75%, 12/15/23			249		255,536
5.88%, 05/15/26			63		63,866
Core & Main LP, 6.13%, 08/15/25(b)			372		363,742

SCHEDULES OF INVESTMENTS 17

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Distributors (continued)
Parts Europe SA:
(EURIBOR 3 Month + 4.38%), 4.38%, 05/01/22(a)	EUR		86	$	96,101
4.38%, 05/01/22			100		111,334
(EURIBOR 3 Month + 5.50%), 5.50%, 05/01/22(a)			151		169,808
Tewoo Group No. 5 Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 3 Year + 8.37%), 5.80%(a)(k)	USD		250		210,189
					1,270,576
Diversified Consumer Services — 0.2%
China Education Group Holdings Ltd., 2.00%, 03/28/24(h)	HKD		9,000		1,193,797
frontdoor, Inc., 6.75%, 08/15/26(b)	USD		168		171,780
Graham Holdings Co., 5.75%, 06/01/26(b)			86		90,300
Laureate Education, Inc., 8.25%, 05/01/25(b)			42		45,570
ServiceMaster Co. LLC (The), 5.13%, 11/15/24(b)			404		405,515
					1,906,962
Diversified Financial Services — 1.1%
Arrow Global Finance plc:
5.13%, 09/15/24	GBP		200		248,768
(EURIBOR 3 Month + 2.88%), 2.88%, 04/01/25(a)	EUR		100		107,071
(EURIBOR 3 Month + 3.75%), 3.75%, 03/01/26(a)			100		108,389
Cabot Financial Luxembourg SA:
6.50%, 04/01/21	GBP		100		128,942
7.50%, 10/01/23			200		255,249
CK Hutchison International 16 Ltd., 2.75%, 10/03/26(b)	USD		500		473,608
Garfunkelux Holdco 3 SA:
7.50%, 08/01/22	EUR		130		133,392
(EURIBOR 3 Month + 4.50%), 4.50%, 09/01/23(a)			110		104,544
GE Capital International Funding Co. Unlimited Co., 2.34%, 11/15/20	USD		1,500		1,481,415
Grupo de Inversiones Suramericana SA, 5.70%, 05/18/21			371		387,695
HBOS Capital Funding LP, 6.85%(k)			416		419,120
LHC3 plc, 4.12% (4.12% Cash or 9.00% PIK), 08/15/24(j)	EUR		353		400,756
Lincoln Financing SARL:
3.63%, 04/01/24			259		293,380
(EURIBOR 3 Month + 3.88%), 3.88%, 04/01/24(a)			374		422,681
Nexi Capital SpA, (EURIBOR 3 Month + 3.63%), 3.63%, 05/01/23(a)			172		194,986
Refinitiv US Holdings, Inc.:
4.50%, 05/15/26			346		390,532
6.25%, 05/15/26(b)	USD		1,176		1,192,170
6.88%, 11/15/26	EUR		194		213,267
8.25%, 11/15/26(b)	USD		494		484,737
Tempo Acquisition LLC, 6.75%, 06/01/25(b)			160		161,200
Travelport Corporate Finance plc, 6.00%, 03/15/26(b)			42		45,360
Vantiv LLC:
3.88%, 11/15/25(b)	GBP		132		178,938
3.88%, 11/15/25			200		271,118
Verscend Escrow Corp., 9.75%, 08/15/26(b)	USD		441		439,898
Vertex Capital Investment Ltd., 4.75%, 04/03/24			230		230,000
Worldpay Finance plc, 3.75%, 11/15/22	EUR		100		123,620
					8,890,836
Diversified Telecommunication Services — 2.2%
Altice France SA:
7.38%, 05/01/26(b)	USD		1,119		1,096,620
5.88%, 02/01/27	EUR		300		346,688
8.13%, 02/01/27(b)	USD		503		508,659
Arqiva Broadcast Finance plc, 6.75%, 09/30/23	GBP		100		138,353

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
AT&T, Inc.:
4.85%, 03/01/39	USD		835	$	840,085
4.50%, 03/09/48			1,000		938,292
CCO Holdings LLC:
5.13%, 02/15/23			161		163,818
4.00%, 03/01/23(b)			144		143,863
5.38%, 05/01/25(b)			7		7,228
5.75%, 02/15/26(b)			152		159,030
5.13%, 05/01/27(b)			1,542		1,551,637
5.00%, 02/01/28(b)			243		239,634
CenturyLink, Inc.:
Series S, 6.45%, 06/15/21			306		318,622
Series W, 6.75%, 12/01/23			111		115,856
Series Y, 7.50%, 04/01/24			87		92,003
5.63%, 04/01/25			225		217,688
Series P, 7.60%, 09/15/39			3		2,632
Series U, 7.65%, 03/15/42			45		39,488
Cincinnati Bell, Inc.(b):
7.00%, 07/15/24			370		340,614
8.00%, 10/15/25			28		25,550
DKT Finance ApS, 7.00%, 06/17/23	EUR		333		404,995
eircom Finance DAC, 4.50%, 05/31/22			100		114,027
Embarq Corp., 8.00%, 06/01/36	USD		149		145,089
Frontier Communications Corp.:
10.50%, 09/15/22			38		28,975
11.00%, 09/15/25			300		197,437
8.50%, 04/01/26(b)			96		89,280
8.00%, 04/01/27(b)			440		454,300
Intelsat Jackson Holdings SA:
5.50%, 08/01/23			149		132,238
8.50%, 10/15/24(b)			292		283,970
9.75%, 07/15/25(b)			514		521,864
Level 3 Financing, Inc.:
5.38%, 08/15/22			160		160,800
5.63%, 02/01/23			11		11,124
5.13%, 05/01/23			42		42,367
5.38%, 05/01/25			6		6,074
5.25%, 03/15/26			593		591,517
Level 3 Parent LLC, 5.75%, 12/01/22			22		22,226
Ooredoo International Finance Ltd., 3.75%, 06/22/26			600		594,750
Qualitytech LP, 4.75%, 11/15/25(b)			222		214,785
Qwest Corp., 6.75%, 12/01/21			7		7,448
TDC A/S, 6.88%, 02/23/23	GBP		200		293,963
Telecom Italia Capital SA:
6.38%, 11/15/33	USD		23		22,195
6.00%, 09/30/34			103		95,275
Telecom Italia Finance SA, 7.75%, 01/24/33	EUR		100		145,068
Telecom Italia SpA:
1.13%, 03/26/22(h)			800		868,401
3.25%, 01/16/23			184		215,690
5.88%, 05/19/23	GBP		200		277,850
4.00%, 04/11/24	EUR		266		314,007
5.30%, 05/30/24(b)	USD		249		250,245
2.38%, 10/12/27	EUR		300		312,299
Telesat Canada, 8.88%, 11/15/24(b)	USD		52		56,030
Verizon Communications, Inc.:
1.38%, 10/27/26	EUR		150		174,732
3.88%, 02/08/29	USD		325		332,778
4.50%, 08/10/33			500		528,497
2.88%, 01/15/38	EUR		150		185,199
5.50%, 03/16/47	USD		225		263,339
5.01%, 04/15/49			290		316,620

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
Virgin Media Finance plc:
6.38%, 10/15/24	GBP		100	$	135,777
5.75%, 01/15/25(b)	USD		400		406,500
Virgin Media Secured Finance plc:
5.13%, 01/15/25	GBP		100		132,835
5.50%, 01/15/25			90		119,858
5.25%, 01/15/26(b)	USD		200		201,250
5.50%, 08/15/26(b)			200		203,500
6.25%, 03/28/29	GBP		400		550,830
					17,712,364
Electric Utilities — 0.7%
ContourGlobal Power Holdings SA, 3.38%, 08/01/23	EUR		246		283,200
Duke Energy Corp., 3.95%, 08/15/47	USD		750		722,870
Enel Finance International NV, 4.25%, 09/14/23(b)			595		608,055
Enel SpA, (GBP Swap 5 Year + 4.09%), 6.62%, 09/15/76(a)	GBP		204		284,963
Exelon Corp., 4.45%, 04/15/46	USD		500		515,250
Huachen Energy Co. Ltd., 6.63%, 05/18/20(f)(g)			700		468,475
LLPL Capital Pte. Ltd., 6.88%, 02/04/39			475		513,000
Naturgy Finance BV:
(EUR Swap Annual 8 Year + 3.35%), 4.13%(a)(k)	EUR		400		474,984
(EUR Swap Annual 9 Year + 3.08%), 3.38%(a)(k)			100		113,189
1.88%, 10/05/29			100		118,760
NextEra Energy Operating Partners LP(b):
4.25%, 09/15/24	USD		43		42,677
4.50%, 09/15/27			50		48,750
Tohoku Electric Power Co., Inc., 0.00%, 12/03/20(h)(i)	JPY		50,000		445,970
Virginia Electric & Power Co., Series B, 3.80%, 09/15/47	USD		500		482,380
Vistra Operations Co. LLC(b):
5.50%, 09/01/26			2		2,080
5.63%, 02/15/27			295		306,800
Yunnan Energy Investment Overseas Finance Co. Ltd., 6.25%, 11/29/21			445		455,903
					5,887,306
Electrical Equipment — 0.2%
Bizlink Holding, Inc., 0.00%, 02/01/23(h)(i)			500		516,730
Energizer Gamma Acquisition BV, 4.63%, 07/15/26	EUR		107		123,164
Sensata Technologies BV, 5.00%, 10/01/25(b)	USD		397		406,925
Vertiv Group Corp., 9.25%, 10/15/24(b)			221		219,895
					1,266,714
Electronic Equipment, Instruments & Components — 0.2%
Anixter, Inc., 6.00%, 12/01/25(b)			133		139,650
Belden, Inc., 4.13%, 10/15/26	EUR		310		365,408
CDW LLC:
5.50%, 12/01/24	USD		629		661,236
5.00%, 09/01/25			43		44,075
Hon Hai Precision Industry Co. Ltd., 0.00%, 11/06/22(h)(i)			200		185,651
Ingenico Group SA, 1.63%, 09/13/24	EUR		200		212,902
Itron, Inc., 5.00%, 01/15/26(b)	USD		7		6,886
Zhen Ding Technology Holding Ltd., 0.00%, 06/26/19(h)(i)			200		204,000
					1,819,808
Energy Equipment & Services — 0.7%
Anton Oilfield Services Group, 9.75%, 12/05/20			1,300		1,326,650
Apergy Corp., 6.38%, 05/01/26			56		56,700
Archrock Partners LP, 6.88%, 04/01/27(b)			55		56,083
CSI Compressco LP, 7.50%, 04/01/25(b)			103		98,365

Security		Par (000)		Value
Energy Equipment & Services (continued)
Diamond Offshore Drilling, Inc.:
7.88%, 08/15/25	USD		58	$	55,970
5.70%, 10/15/39			8		5,380
4.88%, 11/01/43			68		43,010
Ensco Jersey Finance Ltd., 3.00%, 01/31/24(h)			151		116,468
Ensco plc:
4.70%, 03/15/21			12		11,400
5.20%, 03/15/25			80		62,024
7.75%, 02/01/26			63		53,156
5.75%, 10/01/44			29		18,633
Hilong Holding Ltd., 7.25%, 06/22/20			1,400		1,389,342
McDermott Technology Americas, Inc., 10.63%, 05/01/24(b)			135		111,713
Nabors Industries, Inc.:
4.63%, 09/15/21			107		105,662
5.50%, 01/15/23			12		11,454
5.75%, 02/01/25			46		41,227
Noble Holding International Ltd.:
7.75%, 01/15/24			8		7,203
7.88%, 02/01/26(b)			291		269,902
5.25%, 03/15/42			38		22,800
Oceaneering International, Inc., 4.65%, 11/15/24			12		11,070
Pacific Drilling First Lien Escrow Issuer Ltd., 8.38%, 10/01/23(b)			262		265,977
Pioneer Energy Services Corp., 6.13%, 03/15/22			84		52,080
Precision Drilling Corp.:
5.25%, 11/15/24			5		4,675
7.13%, 01/15/26(b)			80		79,325
Rowan Cos., Inc., 4.88%, 06/01/22			142		132,238
SESI LLC:
7.13%, 12/15/21			35		31,369
7.75%, 09/15/24			33		27,307
Transocean Pontus Ltd., 6.13%, 08/01/25(b)			69		69,847
Transocean Poseidon Ltd., 6.88%, 02/01/27(b)			158		164,320
Transocean, Inc.:
6.50%, 11/15/20			10		10,325
8.47%, 12/15/21			5		5,262
9.00%, 07/15/23(b)			204		217,515
7.25%, 11/01/25(b)			166		164,340
7.50%, 01/15/26(b)			55		54,313
USA Compression Partners LP:
6.88%, 04/01/26			233		239,116
6.88%, 09/01/27(b)			118		119,918
Vantage Drilling International, 9.25%, 11/15/23(b)			36		36,990
Weatherford International Ltd.:
5.13%, 09/15/20			70		61,600
6.50%, 08/01/36			10		5,650
5.95%, 04/15/42			56		31,343
					5,647,722
Entertainment — 0.2%
Ascend Learning LLC:
6.88%, 08/01/25(b)			180		178,786
Live Nation Entertainment, Inc.(b):
5.38%, 06/15/22			40		40,500
4.88%, 11/01/24			9		9,056
Netflix, Inc.:
5.50%, 02/15/22			68		71,315
4.38%, 11/15/26			87		85,369
4.88%, 04/15/28			7		6,930
5.88%, 11/15/28(b)			404		426,725
4.63%, 05/15/29	EUR		316		378,241

SCHEDULES OF INVESTMENTS 19

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Entertainment (continued)
Warner Media LLC, 3.60%, 07/15/25	USD		350	$	349,122
WMG Acquisition Corp.:
4.13%, 11/01/24	EUR		270		317,369
5.50%, 04/15/26(b)	USD		43		44,129
					1,907,542
Equity Real Estate Investment Trusts (REITs) — 1.1%
American Tower Corp., 3.13%, 01/15/27			1,000		958,362
Cromwell SPV Finance Pty. Ltd., 2.50%, 03/29/25(h)	EUR		200		221,265
Crown Castle International Corp., 3.80%, 02/15/28	USD		1,000		993,978
CyrusOne LP:
5.00%, 03/15/24			30		30,638
5.38%, 03/15/27			49		50,700
Equinix, Inc.:
5.38%, 04/01/23			86		87,505
2.88%, 03/15/24	EUR		127		147,046
2.88%, 10/01/25			478		551,397
5.88%, 01/15/26	USD		469		494,068
2.88%, 02/01/26	EUR		200		231,068
5.38%, 05/15/27	USD		249		261,525
ESH Hospitality, Inc., 5.25%, 05/01/25(b)			126		125,160
GEO Group, Inc. (The), 5.88%, 10/15/24			114		99,750
GLP Capital LP:
5.38%, 11/01/23			14		14,738
5.25%, 06/01/25			43		45,042
5.38%, 04/15/26			76		79,412
Inmobiliaria Colonial Socimi SA:
1.63%, 11/28/25	EUR		100		112,486
2.50%, 11/28/29			200		228,451
Iron Mountain UK plc, 3.88%, 11/15/25	GBP		210		260,064
Iron Mountain, Inc.:
5.75%, 08/15/24	USD		250		252,500
3.00%, 01/15/25	EUR		110		124,006
4.88%, 09/15/27(b)	USD		77		73,920
iStar, Inc.:
4.63%, 09/15/20			9		9,101
6.00%, 04/01/22			56		56,210
5.25%, 09/15/22			43		42,194
MGM Growth Properties Operating Partnership LP:
5.63%, 05/01/24			506		526,240
4.50%, 09/01/26			423		411,367
4.50%, 01/15/28			36		33,840
MPT Operating Partnership LP:
5.50%, 05/01/24			23		23,575
5.00%, 10/15/27			548		557,590
RHP Hotel Properties LP, 5.00%, 04/15/21			178		178,000
SBA Communications Corp.:
4.88%, 07/15/22			24		24,330
4.00%, 10/01/22			186		186,670
4.88%, 09/01/24			610		616,283
Trust F/1401, 5.25%, 01/30/26			700		711,973
VICI Properties 1 LLC, 8.00%, 10/15/23			162		177,643
					8,998,097
Food & Staples Retailing — 0.2%
Albertsons Cos. LLC:
6.63%, 06/15/24			84		84,840
5.75%, 03/15/25			8		7,590
7.50%, 03/15/26(b)			40		41,150
Casino Guichard Perrachon SA:
4.56%, 01/25/23	EUR		300		337,032
4.50%, 03/07/24			100		111,211
Cencosud SA, 6.63%, 02/12/45	USD		228		228,548

Security		Par (000)		Value
Food & Staples Retailing (continued)
Distribuidora Internacional de Alimentacion SA, 1.00%, 04/28/21	EUR		300	$	274,270
Hipercor SA, 3.88%, 01/19/22			200		236,088
Tesco plc, 5.00%, 03/24/23	GBP		100		143,037
					1,463,766
Food Products — 0.7%
B&G Foods, Inc., 5.25%, 04/01/25	USD		30		28,762
Boparan Finance plc, 5.50%, 07/15/21	GBP		200		177,987
Chobani LLC, 7.50%, 04/15/25(b)	USD		49		43,916
Gruma SAB de CV, 4.88%, 12/01/24			760		795,055
JBS USA LUX SA(b):
5.88%, 07/15/24			250		256,875
5.75%, 06/15/25			459		470,861
6.75%, 02/15/28			134		138,645
Knight Castle Investments Ltd., 7.99%, 01/23/21			1,400		1,018,976
Nomad Foods Bondco plc, 3.25%, 05/15/24	EUR		100		114,310
Post Holdings, Inc.(b):
5.50%, 03/01/25	USD		173		174,946
5.00%, 08/15/26			53		51,542
5.75%, 03/01/27			117		117,439
5.63%, 01/15/28			109		108,183
Sigma Finance Netherlands BV, 4.88%, 03/27/28			331		329,774
Simmons Foods, Inc., 7.75%, 01/15/24(b)			183		194,895
SSMS Plantation Holdings Pte. Ltd., 7.75%, 01/23/23			1,500		1,472,790
					5,494,956
Gas Utilities — 0.1%
Perusahaan Gas Negara Persero Tbk., 5.13%, 05/16/24			769		807,815
Superior Plus LP, 7.00%, 07/15/26(b)			117		118,901
					926,716
Health Care Equipment & Supplies — 0.4%
Avantor, Inc.(b):
6.00%, 10/01/24			856		888,100
9.00%, 10/01/25			367		397,736
Becton Dickinson and Co., 4.67%, 06/06/47			275		288,003
Hologic, Inc.(b):
4.38%, 10/15/25			17		16,912
4.63%, 02/01/28			78		76,635
Immucor, Inc., 11.13%, 02/15/22(b)			31		31,465
Mallinckrodt International Finance SA(b):
4.88%, 04/15/20			166		165,170
5.75%, 08/01/22			58		53,940
Ortho-Clinical Diagnostics, Inc., 6.63%, 05/15/22(b)			710		673,790
Sotera Health Holdings LLC, 6.50%, 05/15/23(b)			185		186,387
Teleflex, Inc.:
4.88%, 06/01/26			86		87,613
4.63%, 11/15/27			66		65,464
					2,931,215
Health Care Providers & Services — 1.1%
Acadia Healthcare Co., Inc.:
5.13%, 07/01/22			174		174,435
5.63%, 02/15/23			36		36,225
6.50%, 03/01/24			8		8,200
AHP Health Partners, Inc., 9.75%, 07/15/26(b)			38		40,945
Centene Corp.:
4.75%, 01/15/25			152		155,040
5.38%, 06/01/26(b)			718		749,412
Community Health Systems, Inc.(b):
8.63%, 01/15/24			220		220,275
8.00%, 03/15/26			149		143,040

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Health Care Providers & Services (continued)
CVS Health Corp., 5.05%, 03/25/48	USD		600	$	604,443
DaVita, Inc., 5.13%, 07/15/24			102		100,725
Encompass Health Corp., 5.75%, 11/01/24			171		173,137
HCA, Inc.:
5.88%, 05/01/23			7		7,464
5.00%, 03/15/24			1,000		1,060,192
5.38%, 02/01/25			310		328,600
5.38%, 09/01/26			177		186,514
5.63%, 09/01/28			354		374,355
5.88%, 02/01/29			327		352,326
5.50%, 06/15/47			247		262,598
inVentiv Group Holdings, Inc., 7.50%, 10/01/24(b)			67		70,517
MEDNAX, Inc.(b):
5.25%, 12/01/23			66		66,825
6.25%, 01/15/27			229		231,290
Molina Healthcare, Inc.:
5.38%, 11/15/22			74		76,820
4.88%, 06/15/25(b)			45		44,494
MPH Acquisition Holdings LLC, 7.13%, 06/01/24(b)			201		200,498
NVA Holdings, Inc., 6.88%, 04/01/26(b)			78		77,123
Polaris Intermediate Corp., 8.50% (8.50% Cash or 9.25% PIK), 12/01/22(b)(j)			344		339,356
RegionalCare Hospital Partners Holdings, Inc., 8.25%, 05/01/23(b)			277		294,659
Surgery Center Holdings, Inc.(b):
8.88%, 04/15/21			93		97,399
6.75%, 07/01/25			149		134,845
10.00%, 04/15/27			76		77,140
Synlab Bondco plc, 6.25%, 07/01/22	EUR		100		115,512
Team Health Holdings, Inc., 6.38%, 02/01/25(b)	USD		121		98,464
Tenet Healthcare Corp.:
8.13%, 04/01/22			289		310,920
4.63%, 07/15/24			498		498,772
6.25%, 02/01/27(b)			333		345,671
Vizient, Inc., 10.38%, 03/01/24(b)			41		44,559
WellCare Health Plans, Inc.:
5.25%, 04/01/25			115		119,025
5.38%, 08/15/26(b)			290		303,413
					8,525,228
Health Care Technology — 0.1%
IQVIA, Inc.:
3.50%, 10/15/24	EUR		100		115,307
3.25%, 03/15/25(b)			100		114,558
3.25%, 03/15/25			310		355,128
5.00%, 10/15/26(b)	USD		200		204,626
					789,619
Hotels, Restaurants & Leisure — 1.8%
Aramark International Finance SARL, 3.13%, 04/01/25	EUR		110		128,648
Boyd Gaming Corp., 6.00%, 08/15/26	USD		69		70,725
Boyne USA, Inc., 7.25%, 05/01/25(b)			72		77,040
Caesars Resort Collection LLC, 5.25%, 10/15/25(b)			154		148,320
Churchill Downs, Inc.(b):
5.50%, 04/01/27			224		227,136
4.75%, 01/15/28			149		141,736
Cirsa Finance International SARL, 6.25%, 12/20/23	EUR		100		118,359
CPUK Finance Ltd.:
4.25%, 08/28/22	GBP		225		291,998
4.88%, 08/28/25			100		128,022
EI Group plc, 6.38%, 02/15/22			100		133,198
Eldorado Resorts, Inc.:
6.00%, 04/01/25	USD		56		56,700
6.00%, 09/15/26			35		35,525

Security		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
Golden Nugget, Inc., 6.75%, 10/15/24(b)	USD		568	$	570,840
Hilton Domestic Operating Co., Inc.:
4.25%, 09/01/24			177		176,667
5.13%, 05/01/26(b)			273		277,584
Hilton Worldwide Finance LLC:
4.63%, 04/01/25			43		43,430
4.88%, 04/01/27			104		105,170
HIS Co. Ltd.(h)(i):
0.00%, 08/30/19	JPY		10,000		90,048
0.00%, 11/15/24			10,000		95,619
Huazhu Group Ltd., 0.38%, 11/01/22(h)	USD		913		1,048,120
IRB Holding Corp., 6.75%, 02/15/26(b)			35		32,900
KFC Holding Co.(b):
5.00%, 06/01/24			40		40,800
5.25%, 06/01/26			359		362,366
4.75%, 06/01/27			86		84,495
Ladbrokes Group Finance plc, 5.13%, 09/08/23	GBP		400		538,433
Marriott Ownership Resorts, Inc., 6.50%, 09/15/26(b)	USD		14		14,668
McDonald’s Corp., 4.45%, 09/01/48			500		513,182
MGM Resorts International:
6.63%, 12/15/21			755		806,906
7.75%, 03/15/22			175		192,938
5.50%, 04/15/27			67		67,712
New Red Finance, Inc.(b):
4.25%, 05/15/24			471		466,290
5.00%, 10/15/25			883		872,227
NH Hotel Group SA, 3.75%, 10/01/23	EUR		115		133,128
Pinnacle Bidco plc, 6.38%, 02/15/25	GBP		230		307,759
Punch Taverns Finance B Ltd., 7.37%, 09/30/21			51		71,123
Sabre GLBL, Inc., 5.25%, 11/15/23(b)	USD		338		344,760
Scientific Games International, Inc.:
10.00%, 12/01/22			263		276,373
5.00%, 10/15/25(b)			531		520,380
3.38%, 02/15/26	EUR		200		216,386
8.25%, 03/15/26(b)	USD		321		327,629
Silversea Cruise Finance Ltd., 7.25%, 02/01/25(b)			16		17,304
Sisal Group SpA, 7.00%, 07/31/23	EUR		250		282,709
Six Flags Entertainment Corp.(b):
4.88%, 07/31/24	USD		581		574,098
5.50%, 04/15/27			89		88,003
Station Casinos LLC, 5.00%, 10/01/25(b)			34		33,320
Stonegate Pub Co. Financing plc:
4.88%, 03/15/22	GBP		100		129,909
(LIBOR GBP 3 Month + 4.38%), 5.22%, 03/15/22(a)			150		194,733
(LIBOR GBP 3 Month + 6.25%), 7.09%, 03/15/22(a)			166		217,287
Studio City Finance Ltd., 7.25%, 02/11/24	USD		800		836,000
Viking Cruises Ltd.(b):
6.25%, 05/15/25			75		76,125
5.88%, 09/15/27			774		753,102
Vinpearl JSC, 3.50%, 06/14/23(h)			600		642,067
Wyndham Destinations, Inc., 5.75%, 04/01/27			43		42,652
Wyndham Hotels & Resorts, Inc., 5.38%, 04/15/26(b)			78		79,170
Yum! Brands, Inc., 5.35%, 11/01/43			2		1,730
					14,123,549
Household Durables — 0.2%
Century Communities, Inc., 6.88%, 05/15/22			128		130,240
Lennar Corp.:
6.25%, 12/15/21			360		378,900
4.88%, 12/15/23			85		87,550
5.25%, 06/01/26			67		68,926
4.75%, 11/29/27			140		140,066

SCHEDULES OF INVESTMENTS 21

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Household Durables (continued)
Mattamy Group Corp.(b):
6.88%, 12/15/23	USD		30	$	30,600
6.50%, 10/01/25			44		43,188
MDC Holdings, Inc., 6.00%, 01/15/43			32		27,360
Meritage Homes Corp., 5.13%, 06/06/27			20		19,394
PulteGroup, Inc., 6.38%, 05/15/33			125		124,531
Tempur Sealy International, Inc., 5.50%, 06/15/26			48		48,030
TRI Pointe Group, Inc.:
4.88%, 07/01/21			64		64,080
5.25%, 06/01/27			2		1,840
Williams Scotsman International, Inc.(b):
7.88%, 12/15/22			69		71,070
6.88%, 08/15/23			92		92,000
					1,327,775
Household Products — 0.0%
Energizer Holdings, Inc.(b):
6.38%, 07/15/26			11		11,275
7.75%, 01/15/27			162		172,530
Spectrum Brands, Inc., 5.75%, 07/15/25			190		191,425
					375,230
Independent Power and Renewable Electricity Producers — 0.4%
AES Corp.:
4.50%, 03/15/23			7		7,070
4.88%, 05/15/23			33		33,454
5.50%, 04/15/25			111		115,162
6.00%, 05/15/26			289		306,334
5.13%, 09/01/27			145		150,828
Calpine Corp.:
5.38%, 01/15/23			436		436,545
5.88%, 01/15/24(b)			70		71,750
5.50%, 02/01/24			26		25,837
5.75%, 01/15/25			159		158,205
5.25%, 06/01/26(b)			545		542,275
Clearway Energy Operating LLC:
5.38%, 08/15/24			111		110,723
5.75%, 10/15/25(b)			110		110,412
NRG Energy, Inc.:
6.63%, 01/15/27			913		982,616
5.75%, 01/15/28			9		9,540
Pattern Energy Group, Inc., 5.88%, 02/01/24(b)			241		245,218
Talen Energy Supply LLC:
6.50%, 06/01/25			20		17,600
10.50%, 01/15/26(b)			20		20,850
Vistra Energy Corp., 7.63%, 11/01/24			86		90,947
					3,435,366
Industrial Conglomerates — 0.1%
General Electric Co., (EURIBOR 3 Month + 0.30%), 0.00%, 05/28/20(a)	EUR		100		111,816
KOC Holding A/S, 5.25%, 03/15/23	USD		300		284,250
					396,066
Insurance — 1.4%
Acrisure LLC, 8.13%, 02/15/24(b)			42		43,519
Aegon NV, (EUR Swap Annual 5 Year + 5.21%), 6.00%(a)(k)	EUR		275		308,706
Alliant Holdings Intermediate LLC, 8.25%, 08/01/23(b)	USD		737		755,425
Allstate Corp. (The), (LIBOR USD 3 Month + 0.43%), 3.03%, 03/29/21(a)			275		274,689
AmWINS Group, Inc., 7.75%, 07/01/26(b)			53		52,867
Asahi Mutual Life Insurance Co., (USD Swap Semi 5 Year + 4.59%), 6.50%(a)(k)			800		797,802

Security		Par (000)		Value
Insurance (continued)
Assicurazioni Generali SpA(a):
(LIBOR GBP 3 Month + 2.20%), 6.42%(k)	GBP		100	$	135,781
(EURIBOR 3 Month + 7.11%), 7.75%, 12/12/42	EUR		200		266,586
(EURIBOR 3 Month + 5.35%), 5.50%, 10/27/47			350		429,384
BNP Paribas Cardif SA, (EURIBOR 3 Month + 3.93%), 4.03%(a)(k)			400		474,922
Caisse Nationale de Reassurance Mutuelle Agricole Groupama:
(EURIBOR 3 Month + 5.77%), 6.37%(a)(k)			200		251,667
6.00%, 01/23/27			200		267,728
CNP Assurances:
1.88%, 10/20/22			100		116,171
(EURIBOR 3 Month + 4.60%), 4.50%, 06/10/47(a)			100		125,292
Credit Agricole Assurances SA, (EUR Swap Annual 5 Year + 4.35%), 4.50%(a)(k)			300		358,372
Heungkuk Life Insurance Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.47%), 4.48%, 11/09/47(a)	USD		2,000		1,877,500
HUB International Ltd., 7.00%, 05/01/26(b)			475		470,250
KDB Life Insurance Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.66%), 7.50%, 05/21/48(a)			1,800		1,725,543
Mapfre SA, (EURIBOR 3 Month + 4.30%), 4.13%, 09/07/48(a)	EUR		200		232,120
Mitsui Sumitomo Insurance Co. Ltd., (USD Swap Semi 5 Year + 3.26%), 4.95%(a)(k)	USD		1,650		1,689,188
NN Group NV, (EURIBOR 3 Month + 3.90%), 4.38%(a)(k)	EUR		110		130,180
USI, Inc., 6.88%, 05/01/25(b)	USD		53		51,476
					10,835,168
Interactive Media & Services — 0.2%
Baidu, Inc., 4.13%, 06/30/25			600		612,855
Match Group, Inc., 5.63%, 02/15/29(b)			92		93,150
Rackspace Hosting, Inc., 8.63%, 11/15/24(b)			41		36,526
Tencent Holdings Ltd., 3.80%, 02/11/25			600		612,164
					1,354,695
Internet & Direct Marketing Retail — 0.1%
Alibaba Group Holding Ltd., 3.60%, 11/28/24			500		510,738
Shop Direct Funding plc, 7.75%, 11/15/22	GBP		240		281,333
Uber Technologies, Inc.(b):
7.50%, 11/01/23	USD		99		103,208
8.00%, 11/01/26			24		25,530
					920,809
IT Services — 0.6%
Alliance Data Systems Corp., 5.88%, 11/01/21(b)			265		270,962
Banff Merger Sub, Inc.:
8.38%, 09/01/26	EUR		410		454,166
9.75%, 09/01/26(b)	USD		685		664,450
Booz Allen Hamilton, Inc., 5.13%, 05/01/25(b)			187		186,532
First Data Corp., 5.75%, 01/15/24(b)			267		274,543
Gartner, Inc., 5.13%, 04/01/25(b)			128		129,370
InterXion Holding NV, 4.75%, 06/15/25	EUR		300		356,717
United Group BV:
4.38%, 07/01/22			325		374,094
(EURIBOR 3 Month + 4.38%), 4.38%, 07/01/23(a)			251		282,261
4.88%, 07/01/24			244		279,635
WEX, Inc., 4.75%, 02/01/23(b)	USD		91		90,772
Zayo Group LLC:
6.00%, 04/01/23			365		369,562
6.38%, 05/15/25			108		108,540
5.75%, 01/15/27(b)			652		650,566
					4,492,170

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Leisure Products — 0.0%
Mattel, Inc., 6.75%, 12/31/25(b)	USD		272	$	267,580
Life Sciences Tools & Services — 0.0%
Charles River Laboratories International, Inc., 5.50%, 04/01/26(b)			132		136,950
Machinery — 0.5%
CNH Industrial Finance Europe SA, 1.75%, 09/12/25	EUR		100		114,730
Colfax Corp.(b):
6.00%, 02/15/24	USD		176		183,260
6.38%, 02/15/26			83		88,343
EnPro Industries, Inc., 5.75%, 10/15/26(b)			93		93,697
Grinding Media, Inc., 7.38%, 12/15/23(b)			92		88,320
Manitowoc Co., Inc. (The), 9.00%, 04/01/26(b)			48		48,600
Mueller Water Products, Inc., 5.50%, 06/15/26(b)			134		136,010
Navistar International Corp., 6.63%, 11/01/25(b)			167		169,714
Novelis Corp.(b):
6.25%, 08/15/24			544		556,240
5.88%, 09/30/26			581		578,821
Platin 1426 GmbH, 5.38%, 06/15/23	EUR		364		397,174
RBS Global, Inc., 4.88%, 12/15/25(b)	USD		129		127,387
SPX FLOW, Inc.(b):
5.63%, 08/15/24			94		94,470
5.88%, 08/15/26			23		23,115
Stevens Holding Co., Inc., 6.13%, 10/01/26(b)			42		43,260
Terex Corp., 5.63%, 02/01/25(b)			533		530,335
Titan Acquisition Ltd., 7.75%, 04/15/26(b)			288		248,400
Wabash National Corp., 5.50%, 10/01/25(b)			65		60,613
					3,582,489
Marine — 0.1%
CMA CGM SA:
6.50%, 07/15/22	EUR		120		127,947
5.25%, 01/15/25			320		299,341
					427,288
Media — 2.4%
Altice Financing SA(b):
6.63%, 02/15/23	USD		634		648,265
7.50%, 05/15/26			600		592,200
Altice Finco SA, 4.75%, 01/15/28	EUR		100		93,666
Altice Luxembourg SA:
7.75%, 05/15/22(b)	USD		600		600,000
6.25%, 02/15/25	EUR		100		103,223
AMC Networks, Inc.:
5.00%, 04/01/24	USD		3		3,015
4.75%, 08/01/25			440		436,700
Block Communications, Inc., 6.88%, 02/15/25(b)			54		55,958
CBS Radio, Inc., 7.25%, 11/01/24(b)			5		4,975
Charter Communications Operating LLC, 6.48%, 10/23/45			498		558,260
Clear Channel International BV, 8.75%, 12/15/20(b)			3		3,079
Clear Channel Worldwide Holdings, Inc.:
Series B, 6.50%, 11/15/22			2,263		2,311,631
9.25%, 02/15/24(b)			814		862,840
Comcast Corp.:
4.70%, 10/15/48			305		330,653
4.05%, 11/01/52			500		487,158
CSC Holdings LLC:
6.75%, 11/15/21			92		98,325
5.13%, 12/15/21(b)			270		270,337
5.38%, 07/15/23(b)			213		216,994
5.25%, 06/01/24			304		308,560
7.75%, 07/15/25(b)			211		226,298

Security		Par (000)		Value
Media (continued)
CSC Holdings LLC (continued)
10.88%, 10/15/25(b)	USD		1,016	$	1,172,972
5.50%, 05/15/26(b)			260		267,228
5.38%, 02/01/28(b)			400		401,000
6.50%, 02/01/29(b)			200		213,000
Discovery Communications LLC, 3.95%, 03/20/28			500		485,799
DISH DBS Corp.:
6.75%, 06/01/21			319		328,889
5.88%, 07/15/22			473		457,769
5.00%, 03/15/23			29		26,100
5.88%, 11/15/24			26		21,840
Gray Television, Inc.(b):
5.13%, 10/15/24			7		7,028
7.00%, 05/15/27			113		120,063
Interpublic Group of Cos., Inc. (The):
3.50%, 10/01/20			140		141,207
4.65%, 10/01/28			150		156,160
5.40%, 10/01/48			465		470,438
Lamar Media Corp., 5.75%, 02/01/26(b)			80		83,600
MDC Partners, Inc., 6.50%, 05/01/24(b)			114		94,335
Meredith Corp., 6.88%, 02/01/26			141		148,050
Midcontinent Communications, 6.88%, 08/15/23(b)			69		71,780
Myriad International Holdings BV, 5.50%, 07/21/25			700		749,000
Outfront Media Capital LLC, 5.88%, 03/15/25			73		74,825
Radiate Holdco LLC(b):
6.88%, 02/15/23			17		16,830
6.63%, 02/15/25			44		42,460
SES SA(a)(k):
(EUR Swap Annual 5 Year + 4.66%), 4.62%	EUR		100		117,207
(EUR Swap Annual 5 Year + 5.40%), 5.63%			200		239,426
Sirius XM Radio, Inc.(b):
5.38%, 04/15/25	USD		7		7,184
5.38%, 07/15/26			3		3,064
5.00%, 08/01/27			415		415,249
TEGNA, Inc., 5.50%, 09/15/24(b)			59		59,590
Telenet Finance Luxembourg Notes SARL, 5.50%, 03/01/28(b)			200		196,000
Telenet Finance VI Luxembourg SCA, 4.88%, 07/15/27	EUR		306		368,513
Tribune Media Co., 5.88%, 07/15/22	USD		171		174,527
Unitymedia GmbH, 3.75%, 01/15/27	EUR		200		235,531
Unitymedia Hessen GmbH & Co. KG:
3.50%, 01/15/27			200		235,852
6.25%, 01/15/29			332		412,767
Univision Communications, Inc.(b):
6.75%, 09/15/22	USD		32		32,480
5.13%, 05/15/23			12		11,362
5.13%, 02/15/25			190		176,938
UPC Holding BV:
5.50%, 01/15/28(b)			210		209,475
3.88%, 06/15/29	EUR		100		114,009
UPCB Finance IV Ltd., 4.00%, 01/15/27			135		158,281
UPCB Finance VII Ltd., 3.63%, 06/15/29			200		232,864
Videotron Ltd., 5.13%, 04/15/27(b)	USD		287		292,740
Virgin Media Receivables Financing Notes I DAC, 5.50%, 09/15/24	GBP		309		404,389
Ziggo Bond Co. BV:
7.13%, 05/15/24	EUR		200		233,997
5.88%, 01/15/25(b)	USD		400		395,000
Ziggo BV:
4.25%, 01/15/27	EUR		300		345,779
5.50%, 01/15/27(b)	USD		300		296,250
					19,130,984

SCHEDULES OF INVESTMENTS 23

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Metals & Mining — 1.1%
BHP Billiton Finance Ltd., (EUR Swap Annual 5 Year + 4.80%), 5.63%, 10/22/79(a)	EUR		100	$	132,594
Big River Steel LLC, 7.25%, 09/01/25(b)	USD		118		123,345
Bukit Makmur Mandiri Utama PT, 7.75%, 02/13/22			300		313,500
Cleveland-Cliffs, Inc., 4.88%, 01/15/24(b)			52		51,350
Constellium NV(b):
5.75%, 05/15/24			250		249,375
5.88%, 02/15/26			500		490,937
Energy Resources LLC, 8.00%, 09/30/22(l)			51		52,972
Freeport-McMoRan, Inc.:
4.00%, 11/14/21			172		172,860
3.55%, 03/01/22			266		263,007
3.88%, 03/15/23			711		700,769
4.55%, 11/14/24			102		100,470
5.40%, 11/14/34			20		18,200
5.45%, 03/15/43			886		775,259
HBIS Group Hong Kong Co. Ltd., 4.25%, 04/07/20			400		397,438
Joseph T Ryerson & Son, Inc., 11.00%, 05/15/22(b)			57		60,135
Shandong Iron and Steel Xinheng International Co. Ltd., 6.50%, 06/14/21			200		198,350
Steel Dynamics, Inc.:
5.50%, 10/01/24			198		204,435
4.13%, 09/15/25			89		86,997
5.00%, 12/15/26			91		92,934
SunCoke Energy Partners LP, 7.50%, 06/15/25(b)			33		33,413
thyssenkrupp AG:
1.38%, 03/03/22	EUR		100		111,380
2.88%, 02/22/24			535		603,670
2.50%, 02/25/25			100		112,667
United States Steel Corp.:
6.88%, 08/15/25	USD		66		64,185
6.25%, 03/15/26			37		34,503
Vale Overseas Ltd., 6.25%, 08/10/26			874		954,408
Vedanta Resources plc, 6.38%, 07/30/22			2,300		2,220,639
					8,619,792
Multiline Retail — 0.1%
B&M European Value Retail SA, 4.13%, 02/01/22	GBP		100		131,608
El Puerto de Liverpool SAB de CV, 3.88%, 10/06/26	USD		343		326,743
SACI Falabella, 4.38%, 01/27/25			600		613,158
					1,071,509
Multi-Utilities — 0.0%
RWE AG, (EUR Swap Annual 5 Year + 2.64%), 2.75%, 04/21/75(a)	EUR		260		297,430
Oil, Gas & Consumable Fuels — 3.8%
Antero Midstream Partners LP:
5.38%, 09/15/24	USD		111		111,866
5.75%, 03/01/27(b)			16		16,240
Antero Resources Corp.:
5.13%, 12/01/22			31		31,164
5.63%, 06/01/23			141		142,939
5.00%, 03/01/25			163		160,148
Ascent Resources Utica Holdings LLC(b):
10.00%, 04/01/22			78		85,434
7.00%, 11/01/26			41		39,411
Berry Petroleum Co. LLC, 7.00%, 02/15/26(b)			137		135,630
Brazos Valley Longhorn LLC, 6.88%, 02/01/25			75		75,375
Bruin E&P Partners LLC, 8.88%, 08/01/23(b)			184		176,180
California Resources Corp., 8.00%, 12/15/22(b)			351		275,640
Callon Petroleum Co.:
6.13%, 10/01/24			101		101,505
6.38%, 07/01/26			34		34,085

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Calumet Specialty Products Partners LP, 6.50%, 04/15/21	USD		57	$	55,860
Carrizo Oil & Gas, Inc.:
6.25%, 04/15/23			68		66,895
8.25%, 07/15/25			137		141,110
Centennial Resource Production LLC, 6.88%, 04/01/27(b)			60		60,588
Chaparral Energy, Inc., 8.75%, 07/15/23(b)			57		39,045
Cheniere Corpus Christi Holdings LLC:
7.00%, 06/30/24			271		305,905
5.88%, 03/31/25			120		130,500
5.13%, 06/30/27			950		996,312
Cheniere Energy Partners LP, 5.63%, 10/01/26(b)			161		165,025
Chesapeake Energy Corp.:
6.63%, 08/15/20			72		73,890
6.13%, 02/15/21			64		65,920
4.88%, 04/15/22			37		36,445
5.75%, 03/15/23			15		14,662
7.00%, 10/01/24			134		133,665
8.00%, 01/15/25			76		77,520
8.00%, 06/15/27			382		376,270
China Singyes Solar Technologies Holdings Ltd., 0.00%, 02/15/19(f)(g)(l)			400		243,000
CNX Resources Corp., 5.88%, 04/15/22			913		910,717
Comstock Resources, Inc., 9.75%, 08/15/26(b)			62		57,040
CONSOL Energy, Inc., 11.00%, 11/15/25(b)			263		298,505
Corral Petroleum Holdings AB, 11.75% (11.75% Cash or 13.25% PIK), 05/15/21(j)(l)	EUR		200		238,309
Covey Park Energy LLC, 7.50%, 05/15/25(b)	USD		65		60,125
Crestwood Midstream Partners LP, 6.25%, 04/01/23			43		44,075
CrownRock LP, 5.63%, 10/15/25(b)			464		445,440
DCP Midstream Operating LP:
5.38%, 07/15/25			39		40,657
6.45%, 11/03/36(b)			39		39,975
6.75%, 09/15/37(b)			354		364,620
DEA Finance SA, 7.50%, 10/15/22	EUR		107		124,750
Denbury Resources, Inc., 9.25%, 03/31/22(b)	USD		103		99,395
Diamondback Energy, Inc.:
4.75%, 11/01/24(b)			147		150,278
4.75%, 11/01/24			66		67,472
5.38%, 05/31/25			40		41,750
Enbridge, Inc.:
4.00%, 10/01/23			514		532,342
(LIBOR USD 3 Month + 3.64%), 6.25%, 03/01/78(a)			360		358,029
Encavis Finance BV, (EUR Swap Annual 5 Year + 1.10%), 5.25%(a)(h)(k)	EUR		100		113,063
Endeavor Energy Resources LP(b):
5.50%, 01/30/26	USD		234		239,850
5.75%, 01/30/28			97		101,607
Energy Transfer Operating LP, 5.15%, 02/01/43			150		143,483
Energy Transfer Partners LP, 5.88%, 03/01/22			500		534,456
EnLink Midstream Partners LP:
4.40%, 04/01/24			85		84,150
4.15%, 06/01/25			6		5,775
4.85%, 07/15/26			32		31,766
5.60%, 04/01/44			109		97,555
5.05%, 04/01/45			161		138,863
5.45%, 06/01/47			68		60,520
Enterprise Products Operating LLC, 4.80%, 02/01/49			320		340,392
Eterna Capital Pte. Ltd.(j):
Series B, 0.00% (0.00% Cash or 8.00% PIK), 12/11/22			1,456		1,317,913

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Eterna Capital Pte. Ltd. (continued)
Series A, 6.50% (6.50% Cash or 6.00% PIK), 12/11/22	USD		1,453	$	1,443,459
Extraction Oil & Gas, Inc.(b):
7.38%, 05/15/24			169		141,115
5.63%, 02/01/26			62		47,585
Genesis Energy LP:
6.00%, 05/15/23			13		13,097
5.63%, 06/15/24			32		30,720
6.50%, 10/01/25			27		26,258
6.25%, 05/15/26			50		47,250
Great Western Petroleum LLC, 9.00%, 09/30/21(b)			187		141,185
Gulfport Energy Corp., 6.63%, 05/01/23			54		52,380
Halcon Resources Corp., 6.75%, 02/15/25			102		61,200
Hess Corp., 5.80%, 04/01/47			500		520,410
Hess Infrastructure Partners LP, 5.63%, 02/15/26(b)			64		65,120
Indigo Natural Resources LLC, 6.88%, 02/15/26(b)			78		69,030
Kinder Morgan Energy Partners LP, 3.50%, 03/01/21			500		504,571
Kinder Morgan, Inc., 5.55%, 06/01/45			500		545,315
Magnolia Oil & Gas Operating LLC, 6.00%, 08/01/26(b)			9		9,090
Matador Resources Co., 5.88%, 09/15/26			208		207,480
Medco Straits Services Pte. Ltd., 8.50%, 08/17/22			300		318,056
MEG Energy Corp., 6.50%, 01/15/25(b)			200		197,036
MPLX LP, 5.50%, 02/15/49			375		399,997
Murphy Oil Corp.:
5.75%, 08/15/25			84		86,586
7.05%, 05/01/29			6		6,595
5.87%, 12/01/42			67		59,794
Neerg Energy Ltd., 6.00%, 02/13/22			800		790,000
Neptune Energy Bondco plc, 6.63%, 05/15/25(b)			400		392,000
NGPL PipeCo LLC(b):
4.88%, 08/15/27			173		174,730
7.77%, 12/15/37			156		187,200
Northern Oil and Gas, Inc., 8.50% (8.50% Cash or 1.00% PIK), 05/15/23(j)			143		148,045
Oasis Petroleum, Inc.:
6.88%, 03/15/22			129		130,290
6.88%, 01/15/23			28		28,000
6.25%, 05/01/26(b)			94		89,535
Origin Energy Finance Ltd., (EUR Swap Annual 5 Year + 3.67%), 4.00%, 09/16/74(a)	EUR		300		341,160
Parsley Energy LLC(b):
6.25%, 06/01/24	USD		41		42,384
5.38%, 01/15/25			314		313,215
5.25%, 08/15/25			43		42,355
5.63%, 10/15/27			65		64,675
PBF Holding Co. LLC, 7.25%, 06/15/25			84		86,226
PDC Energy, Inc.:
1.13%, 09/15/21(h)			357		332,445
6.13%, 09/15/24			8		8,000
5.75%, 05/15/26			49		47,898
QEP Resources, Inc.:
6.88%, 03/01/21			66		67,650
5.38%, 10/01/22			174		170,085
5.25%, 05/01/23			99		93,308
5.63%, 03/01/26			155		140,275
Range Resources Corp.:
5.00%, 08/15/22			33		32,670
5.00%, 03/15/23			51		49,980
4.88%, 05/15/25			58		53,795
Reliance Industries Ltd., 4.13%, 01/28/25			750		761,141
ReNew Power Synthetic, 6.67%, 03/12/24			1,000		1,005,000

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Repsol International Finance BV(a):
(EUR Swap Annual 6 Year + 3.56%), 3.88%(k)	EUR		200	$	235,129
(EUR Swap Annual 10 Year + 4.20%), 4.50%, 03/25/75			332		407,142
Sanchez Energy Corp.:
7.75%, 06/15/21	USD		325		45,094
6.13%, 01/15/23			17		2,295
Santos Finance Ltd.:
4.13%, 09/14/27			781		736,910
5.25%, 03/13/29			800		803,911
Seven Generations Energy Ltd., 5.38%, 09/30/25(b)			46		44,965
Sinopec Capital 2013 Ltd., 3.13%, 04/24/23			900		892,706
SM Energy Co.:
6.13%, 11/15/22			54		54,000
5.00%, 01/15/24			133		123,025
5.63%, 06/01/25			106		98,012
6.75%, 09/15/26			63		60,401
6.63%, 01/15/27			15		14,250
Southwestern Energy Co.:
6.20%, 01/23/25			56		55,020
7.50%, 04/01/26			2		2,040
7.75%, 10/01/27			132		134,805
Sunoco LP:
4.88%, 01/15/23			122		123,940
5.50%, 02/15/26			49		48,510
6.00%, 04/15/27(b)			17		17,080
5.88%, 03/15/28			36		35,730
Tallgrass Energy Partners LP(b):
4.75%, 10/01/23			7		7,042
5.50%, 09/15/24			173		177,325
5.50%, 01/15/28			474		475,322
Targa Resources Partners LP:
5.25%, 05/01/23			2		2,036
4.25%, 11/15/23			57		56,786
5.13%, 02/01/25			30		30,600
5.88%, 04/15/26(b)			122		128,954
5.38%, 02/01/27			77		78,732
6.50%, 07/15/27(b)			118		127,293
5.00%, 01/15/28			153		150,896
6.88%, 01/15/29(b)			310		336,738
Tengizchevroil Finance Co. International Ltd., 4.00%, 08/15/26			1,100		1,081,575
TerraForm Power Operating LLC(b):
4.25%, 01/31/23			211		208,466
6.63%, 06/15/25(e)			7		7,332
5.00%, 01/31/28			85		82,025
Transportadora de Gas Internacional SA ESP, 5.55%, 11/01/28(b)			350		378,383
UGI International LLC, 3.25%, 11/01/25	EUR		168		195,285
Whiting Petroleum Corp., 6.63%, 01/15/26	USD		108		105,840
WPX Energy, Inc., 8.25%, 08/01/23			65		73,125
Yankuang Group Cayman Ltd., 4.75%, 11/30/20			385		383,556
					30,058,768
Paper & Forest Products — 0.2%
Fibria Overseas Finance Ltd., 4.00%, 01/14/25			450		442,688
Mercer International, Inc.:
6.50%, 02/01/24			48		49,080
5.50%, 01/15/26			78		76,440
Norbord, Inc.(b):
5.38%, 12/01/20			20		20,494
6.25%, 04/15/23			70		71,750

SCHEDULES OF INVESTMENTS 25

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Paper & Forest Products (continued)
Sappi Papier Holding GmbH, 4.00%, 04/01/23	EUR		200	$	230,746
Smurfit Kappa Acquisitions ULC:
2.38%, 02/01/24			100		117,059
2.88%, 01/15/26			207		241,490
Suzano Austria GmbH, 7.00%, 03/16/47(b)	USD		265		295,475
					1,545,222
Personal Products — 0.2%
Coty, Inc., 6.50%, 04/15/26(b)			82		80,155
Top Glove Labuan Ltd., 2.00%, 03/01/24(h)			1,000		977,500
Unilever NV:
1.13%, 02/12/27	EUR		175		205,219
1.63%, 02/12/33			125		149,668
					1,412,542
Pharmaceuticals — 1.0%
Allergan, Inc., 2.80%, 03/15/23	USD		1,012		989,963
Bausch Health Americas, Inc.(b):
9.25%, 04/01/26			89		97,393
8.50%, 01/31/27			426		451,560
Bausch Health Cos., Inc.:
5.50%, 03/01/23(b)			213		214,065
4.50%, 05/15/23	EUR		500		565,250
5.88%, 05/15/23(b)	USD		515		521,437
7.00%, 03/15/24(b)			209		221,122
6.13%, 04/15/25(b)			301		297,990
5.50%, 11/01/25(b)			556		567,815
9.00%, 12/15/25(b)			319		346,530
5.75%, 08/15/27(b)			57		58,442
Catalent Pharma Solutions, Inc., 4.88%, 01/15/26(b)			147		145,530
Elanco Animal Health, Inc., 4.90%, 08/28/28(b)			71		75,376
Jubilant Pharma Ltd., 6.00%, 03/05/24			200		201,000
Nidda BondCo GmbH:
5.00%, 09/30/25	EUR		100		106,563
7.25%, 09/30/25			263		302,307
Par Pharmaceutical, Inc., 7.50%, 04/01/27(b)			203		205,842
Rossini SARL:
(EURIBOR 3 Month + 6.25%), 6.25%, 10/30/25(a)			100		114,536
6.75%, 10/30/25			712		844,611
Sanofi SA, Series 12FX, 1.38%, 03/21/30			200		235,670
Takeda Pharmaceutical Co. Ltd.:
2.25%, 11/21/26			125		150,770
5.00%, 11/26/28(b)	USD		1,000		1,084,057
3.00%, 11/21/30	EUR		175		215,444
					8,013,273
Professional Services — 0.1%
Intertrust Group BV, 3.38%, 11/15/25			339		388,354
Jaguar Holding Co. II, 6.38%, 08/01/23(b)	USD		629		640,794
					1,029,148
Real Estate Management & Development — 7.9%
ADLER Real Estate AG:
4.75%, 04/08/20	EUR		32		35,971
1.88%, 04/27/23			200		221,087
2.13%, 02/06/24			325		359,496
3.00%, 04/27/26			400		442,642
Agile Group Holdings Ltd.(a)(k):
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 7.46%), 10.22%	USD		1,757		1,783,487
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 9.22%), 6.87%			200		195,177
Akelius Residential Property AB, (EUR Swap Annual 5 Year + 3.49%), 3.88%, 10/05/78(a)	EUR		100		114,460
Alam Synergy Pte. Ltd., 11.50%, 04/22/21	USD		280		298,246

Security		Par (000)		Value
Real Estate Management & Development (continued)
ATF Netherlands BV, (EUR Swap Annual 5 Year + 4.38%), 3.75%(a)(k)	EUR		400	$	450,943
Caiyun International Investment Ltd.:
3.13%, 07/12/19	USD		200		197,250
5.50%, 04/08/22			400		398,908
Central China Real Estate Ltd.:
7.33%, 01/27/20			390		392,438
6.88%, 10/23/20			1,700		1,697,875
CFLD Cayman Investment Ltd., 8.63%, 02/28/21			775		793,406
China Aoyuan Group Ltd.:
7.50%, 05/10/21			1,000		1,022,910
7.95%, 09/07/21			1,000		1,030,000
7.95%, 02/19/23			505		521,347
China Evergrande Group:
7.00%, 03/23/20			1,000		993,295
8.25%, 03/23/22			1,000		980,255
4.25%, 02/14/23(h)	HKD		10,000		1,238,142
8.75%, 06/28/25	USD		1,200		1,131,000
China SCE Group Holdings Ltd.:
8.75%, 01/15/21			900		930,375
7.45%, 04/17/21			300		306,762
5.88%, 03/10/22			800		785,000
CIFI Holdings Group Co. Ltd.:
5.50%, 01/23/22			2,100		2,063,250
6.55%, 03/28/24			700		696,500
Country Garden Holdings Co. Ltd., 6.50%, 04/08/24			900		900,000
CPI Property Group SA, 2.13%, 10/04/24	EUR		175		197,972
Easy Tactic Ltd.:
7.00%, 04/25/21	USD		500		505,625
8.88%, 09/27/21			900		944,815
9.13%, 07/28/22			545		576,338
8.63%, 02/27/24			1,400		1,424,500
Emaar Sukuk Ltd., 3.64%, 09/15/26			300		284,131
Fantasia Holdings Group Co. Ltd.:
8.38%, 03/08/21			200		188,000
7.95%, 07/05/22			750		659,374
Five Point Operating Co. LP, 7.88%, 11/15/25(b)			87		83,302
Future Land Development Holdings Ltd.:
6.50%, 09/12/20			1,000		1,010,000
7.50%, 01/22/21			1,000		1,022,500
Global Prime Capital Pte. Ltd., 7.25%, 04/26/21			200		205,500
Golden Wheel Tiandi Holdings Co. Ltd., 7.00%, 01/18/21			200		187,850
Greenland Global Investment Ltd.:
6.75%, 05/22/19			1,050		1,051,312
(LIBOR USD 3 Month + 4.85%), 7.46%, 09/26/21(a)			1,000		1,010,000
Greenland Hong Kong Holdings Ltd., 9.88%, 06/17/20			800		828,172
Greystar Real Estate Partners LLC, 5.75%, 12/01/25(b)			44		44,110
Howard Hughes Corp. (The), 5.38%, 03/15/25(b)			203		202,730
JGC Ventures Pte. Ltd., 10.75%, 08/30/21			200		214,900
Jingrui Holdings Ltd., 9.45%, 04/23/21			200		192,940
Kaisa Group Holdings Ltd.:
11.75%, 02/26/21			760		772,301
8.50%, 06/30/22			1,356		1,252,571
KWG Group Holdings Ltd., 7.88%, 09/01/23			500		509,091
Leading Affluence Ltd., 4.50%, 01/24/23			400		402,838
Logan Property Holdings Co. Ltd.:
6.88%, 04/24/21			1,000		1,011,250
7.50%, 08/25/22			590		609,175
MAF Global Securities Ltd., 4.75%, 05/07/24			660		673,566

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Real Estate Management & Development (continued)
New Metro Global Ltd.:
6.50%, 04/23/21	USD		700	$	706,400
7.13%, 05/23/21			700		716,843
7.50%, 03/20/22			800		822,000
5.00%, 08/08/22			800		763,292
Newmark Group, Inc., 6.13%, 11/15/23			41		42,253
No Va Land Investment Group Corp., 5.50%, 04/27/23(h)			1,600		1,468,000
Powerlong Real Estate Holdings Ltd.:
5.95%, 07/19/20			1,751		1,733,490
6.95%, 04/17/21			1,500		1,506,665
Redco Group, 13.50%, 01/21/20			410		419,330
Residomo SRO, 3.38%, 10/15/24	EUR		243		276,179
RKPF Overseas Ltd., Series 2019, 7.88%, 02/01/23	USD		1,110		1,164,760
Ronshine China Holdings Ltd.:
11.25%, 08/22/21			460		485,323
10.50%, 03/01/22			200		208,503
Scenery Journey Ltd., 11.00%, 11/06/20			1,800		1,883,250
Shimao Property Holdings Ltd., 6.38%, 10/15/21			1,000		1,038,671
Singha Estate PCL, 2.00%, 07/20/22(h)			800		788,084
Summit Properties Ltd., 2.00%, 01/31/25	EUR		100		100,815
Sunac China Holdings Ltd.:
8.38%, 01/15/21	USD		740		758,852
7.35%, 07/19/21			1,600		1,616,000
Times China Holdings Ltd.:
6.25%, 01/17/21			1,300		1,297,757
7.63%, 02/21/22			1,400		1,433,978
5.75%, 04/26/22			800		780,192
Unique Pub Finance Co. plc (The), Series N, 6.46%, 03/30/32	GBP		200		248,832
Vonovia Finance BV:
0.88%, 07/03/23	EUR		100		113,491
1.50%, 01/14/28			200		228,142
Yuzhou Properties Co. Ltd.:
7.90%, 05/11/21	USD		2,300		2,368,505
8.63%, 01/23/22			600		628,500
6.00%, 01/25/22			800		782,988
Zhenro Properties Group Ltd.:
10.50%, 06/28/20			690		713,740
12.50%, 01/02/21			1,200		1,276,722
9.80%, 08/20/21			340		347,563
					62,764,205
Road & Rail — 0.3%
Avis Budget Finance plc, 4.75%, 01/30/26	EUR		442		506,300
Avolon Holdings Funding Ltd.(b):
5.13%, 10/01/23	USD		200		203,500
5.25%, 05/15/24			122		125,660
EC Finance plc, 2.38%, 11/15/22	EUR		125		142,062
Europcar Groupe SA, 5.75%, 06/15/22			110		126,386
Herc Rentals, Inc.(b):
7.50%, 06/01/22	USD		132		137,445
7.75%, 06/01/24			78		82,778
Hertz Corp. (The), 7.63%, 06/01/22(b)			134		137,149
Hertz Holdings Netherlands BV, 5.50%, 03/30/23	EUR		266		307,977
Loxam SAS, 3.50%, 05/03/23			200		228,299
Pacific National Finance Pty. Ltd., 4.75%, 03/22/28	USD		300		293,429
Park Aerospace Holdings Ltd.(b):
3.63%, 03/15/21			68		67,490
5.25%, 08/15/22			70		71,743
5.50%, 02/15/24			8		8,305
					2,438,523

Security		Par (000)		Value
Semiconductors & Semiconductor Equipment — 1.0%
Advanced Micro Devices, Inc., 7.50%, 08/15/22	USD		29	$	32,371
Broadcom, Inc.(b):
3.13%, 04/15/21			60		59,929
3.13%, 10/15/22			97		96,557
3.63%, 10/15/24			97		96,242
4.25%, 04/15/26			97		96,283
4.75%, 04/15/29			3,097		3,082,289
Entegris, Inc., 4.63%, 02/10/26(b)			76		75,240
Global A&T Electronics Ltd., 8.50%, 01/12/23			900		834,854
Lam Research Corp.:
3.75%, 03/15/26			320		325,794
4.88%, 03/15/49			245		257,399
NXP BV, 5.35%, 03/01/26(b)			2,500		2,690,200
Qorvo, Inc., 5.50%, 07/15/26(b)			243		250,922
QUALCOMM, Inc., 4.30%, 05/20/47			195		186,089
Versum Materials, Inc., 5.50%, 09/30/24(b)			44		46,255
					8,130,424
Software — 0.8%
ACI Worldwide, Inc., 5.75%, 08/15/26(b)			323		330,671
CDK Global, Inc., 4.88%, 06/01/27			303		302,621
Change Healthcare Holdings LLC, 5.75%, 03/01/25(b)			148		146,150
Genesys Telecommunications Laboratories, Inc., 10.00%, 11/30/24(b)			401		437,090
Infor Software Parent LLC, 7.13% (7.13% Cash or 7.88% PIK), 05/01/21(b)(j)			185		184,824
Infor US, Inc., 6.50%, 05/15/22			1,346		1,364,508
Informatica LLC, 7.13%, 07/15/23(b)			540		550,125
Nuance Communications, Inc., 5.63%, 12/15/26			330		339,052
PTC, Inc., 6.00%, 05/15/24			108		112,995
RP Crown Parent LLC, 7.38%, 10/15/24(b)			159		162,975
SAP SE, 1.25%, 03/10/28	EUR		200		234,596
Solera LLC, 10.50%, 03/01/24(b)	USD		1,197		1,297,452
Sophia LP, 9.00%, 09/30/23(b)			96		99,600
SS&C Technologies, Inc., 5.50%, 09/30/27(b)			629		635,290
Symantec Corp., 5.00%, 04/15/25(b)			137		137,205
TIBCO Software, Inc., 11.38%, 12/01/21(b)			245		260,803
					6,595,957
Specialty Retail — 0.1%
Asbury Automotive Group, Inc., 6.00%, 12/15/24			86		88,447
Baoxin Auto Finance I Ltd., 7.90%, 02/09/20			200		199,250
Group 1 Automotive, Inc.:
5.00%, 06/01/22			12		12,030
5.25%, 12/15/23(b)			11		11,055
L Brands, Inc.:
6.88%, 11/01/35			170		146,838
6.75%, 07/01/36			8		6,720
Penske Automotive Group, Inc., 5.50%, 05/15/26			58		57,130
Staples, Inc., 8.50%, 09/15/25(b)			125		136,406
Tendam Brands SAU, 5.00%, 09/15/24	EUR		130		145,811
					803,687
Technology Hardware, Storage & Peripherals — 0.2%
Apple, Inc., 3.75%, 11/13/47	USD		750		749,267
Dell International LLC, 7.13%, 06/15/24(b)			499		529,115
Nuoxi Capital Ltd., 7.50%, 01/28/22			200		202,455
Western Digital Corp., 4.75%, 02/15/26			240		229,200
Xerox Corp.:
4.80%, 03/01/35			133		104,405
6.75%, 12/15/39			16		15,220
					1,829,662

SCHEDULES OF INVESTMENTS 27

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Textiles, Apparel & Luxury Goods — 0.2%
European TopSoho SARL, 4.00%, 09/21/21(h)	EUR		100	$	110,814
Prime Bloom Holdings Ltd.:
7.50%, 12/19/19	USD		500		470,000
6.95%, 07/05/22			355		277,521
PVH Corp., 3.13%, 12/15/27	EUR		319		363,311
SMCP Group SAS, 5.88%, 05/01/23			49		56,227
William Carter Co. (The), 5.63%, 03/15/27(b)	USD		65		67,194
					1,345,067
Thrifts & Mortgage Finance — 0.1%
Jerrold Finco plc:
6.25%, 09/15/21	GBP		200		263,095
6.13%, 01/15/24			100		130,562
Ladder Capital Finance Holdings LLLP(b):
5.25%, 03/15/22	USD		7		7,105
5.25%, 10/01/25			168		161,280
Nationstar Mortgage Holdings, Inc.(b):
8.13%, 07/15/23			138		142,140
9.13%, 07/15/26			51		51,765
					755,947
Tobacco — 0.1%
Altria Group, Inc.:
3.80%, 02/14/24			245		249,358
4.40%, 02/14/26			120		123,340
5.95%, 02/14/49			485		520,432
BAT Capital Corp., (EURIBOR 3 Month + 0.50%), 0.19%, 08/16/21(a)	EUR		100		111,752
					1,004,882
Trading Companies & Distributors — 0.3%
Air Lease Corp., 3.88%, 07/03/23	USD		125		126,360
Beacon Roofing Supply, Inc., 4.88%, 11/01/25(b)			6		5,670
Flexi-Van Leasing, Inc., 10.00%, 02/15/23(b)			38		35,036
Fortress Transportation & Infrastructure Investors LLC(b):
6.75%, 03/15/22			19		19,332
6.50%, 10/01/25			50		49,375
HD Supply, Inc., 5.38%, 10/15/26(b)			990		1,009,800
United Rentals North America, Inc.:
4.63%, 07/15/23			38		38,594
5.75%, 11/15/24			318		326,745
5.50%, 07/15/25			90		92,025
4.63%, 10/15/25			206		203,425
5.88%, 09/15/26			229		236,729
6.50%, 12/15/26			7		7,367
5.50%, 05/15/27			55		55,550
					2,206,008
Transportation Infrastructure — 0.1%
DP World Crescent Ltd., 3.91%, 05/31/23			700		704,375
Royal Capital BV, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 5.93%), 4.88%(a)(k)			219		212,845
Societa Iniziative Autostradali e Servizi SpA, 1.63%, 02/08/28	EUR		100		108,413
					1,025,633
Wireless Telecommunication Services — 1.4%
Digicel Group Two Ltd., 8.25%, 09/30/22(b)	USD		211		69,973
Digicel International Finance Ltd., 8.75%, 05/25/24(b)			200		198,000
Hughes Satellite Systems Corp.:
7.63%, 06/15/21			83		89,226
5.25%, 08/01/26			67		66,497
Matterhorn Telecom SA, 3.88%, 05/01/22	EUR		350		396,476
Oztel Holdings SPC Ltd., 6.63%, 04/24/28	USD		731		710,923

Security		Par (000)		Value
Wireless Telecommunication Services (continued)
SoftBank Group Corp.:
4.00%, 04/20/23	EUR		675	$	813,700
4.75%, 07/30/25			185		223,088
(USD Swap Rate 5 Year + 4.85%), 6.87%(a)(k)	USD		200		184,796
5.00%, 04/15/28	EUR		100		119,859
Sprint Communications, Inc., 7.00%, 03/01/20(b)	USD		319		327,374
Sprint Corp.:
7.88%, 09/15/23			481		503,847
7.13%, 06/15/24			980		994,700
7.63%, 02/15/25			94		95,880
7.63%, 03/01/26			471		477,359
Telefonica Europe BV(a)(k):
(GBP Swap 5 Year + 4.46%), 6.75%	GBP		200		276,849
(EUR Swap Annual 8 Year + 5.59%), 7.63%	EUR		300		389,166
(EUR Swap Annual 5 Year + 3.86%), 3.75%			100		116,332
(EUR Swap Annual 5 Year + 2.33%), 2.63%			100		107,722
(EUR Swap Annual 10 Year + 4.30%), 5.88%			400		498,057
(EUR Swap Annual 6 Year + 4.11%), 4.38%			300		345,180
T-Mobile USA, Inc.:
4.00%, 04/15/22	USD		62		62,698
6.38%, 03/01/25			105		109,336
5.13%, 04/15/25			70		71,663
6.50%, 01/15/26			69		73,657
4.50%, 02/01/26			262		261,857
4.75%, 02/01/28			339		336,034
Vodafone Group plc:
4.38%, 05/30/28			350		355,748
(USD Swap Semi 5 Year + 4.87%), 7.00%, 04/04/79(a)			2,445		2,481,043
Wind Tre SpA:
(EURIBOR 3 Month + 2.75%), 2.75%, 01/20/24(a)	EUR		210		223,553
3.13%, 01/20/25			273		288,660
Xplornet Communications, Inc., 9.63% (9.63% Cash or 10.63% PIK), 06/01/22(b)(j)	USD		37		37,171
					11,306,424
Total Corporate Bonds — 49.8% (Cost: $393,484,195)					397,623,090
Floating Rate Loan Interests — 19.2%(l)
Aerospace & Defense — 0.4%
Atlantic Aviation FBO, Inc., Term Loan B, (LIBOR USD 1 Month + 3.75%), 6.25%, 11/30/25(d)			271		273,355
DAE Aviation Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.75%), 6.25%, 07/07/22			69		68,972
Sequa Mezzanine Holdings LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 7.78%, 11/28/21			380		371,442
Standard Aero Holding, Inc., Term Loan, 12/30/24(m)			410		409,618
Standard Aero, Inc., Term Loan, 01/23/26(m)			762		761,888
Transdigm, Inc., Term Loan F, 06/09/23(m)			1,569		1,531,115
					3,416,390
Air Freight & Logistics — 0.0%
Avolon Borrower 1 LLC, 1st Lien Term Loan B3, (LIBOR USD 1 Month + 2.00%), 4.49%, 01/15/25			314		310,878
Airlines — 0.1%
American Airlines, Inc., 1st Lien Term Loan, 10/10/21(m)			268		265,877
American Airlines, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.48%, 12/14/23			175		171,834
American Airlines, Inc., Term Loan B23, 04/28/23(m)			142		138,939
					576,650

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Auto Components — 0.1%(m)
Caliber Collision Centers, Inc., Term Loan, 02/05/26	USD		321	$	321,080
Panther BF Aggregator 2 LP, Term Loan B, 03/18/26			696		687,739
					1,008,819
Building Products — 0.2%
CPG International, Inc., Term Loan, (LIBOR USD 3 Month + 3.75%), 6.63%, 05/05/24(d)			410		406,018
Jeld-Wen, Inc., Term Loan, 12/14/24(m)			347		340,656
Wilsonart LLC, 1st Lien Term Loan B, (LIBOR USD 3 Month + 3.25%), 5.86%, 12/19/23			436		422,092
					1,168,766
Capital Markets — 0.3%
Deerfield Holdings Corp., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 02/13/25			208		203,747
Fortress Investment Group LLC, Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.50%, 12/27/22			409		406,028
Greenhill & Co., Inc., Term Loan, (LIBOR USD 3 Month + 3.75%), 6.23% - 6.34%, 10/12/22			179		178,850
RPI Finance Trust, Term Loan B, 03/27/23(m)			553		549,445
Travelport Finance (Luxembourg) SA, 1st Lien Term Loan, 03/18/26(m)			890		864,413
					2,202,483
Chemicals — 0.7%
Alpha 3 BV, Term Loan, 01/31/24(m)			963		939,671
Ascend Performance Materials Operations LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 5.25%), 7.75%, 08/12/22			332		331,016
Axalta Dupont PC, Term Loan, 06/01/24(m)			713		696,588
Chemours Co. (The), 1st Lien Term Loan, (LIBOR USD 1 Month + 1.75%), 4.25%, 04/03/25			407		402,212
Ennis-Flint Road Infrastructure Investment, Term Loan, (LIBOR USD 3 Month + 3.50%), 6.24%, 06/13/23			196		172,408
Greenrock Finance, Inc., Term Loan, 06/28/24(m)			139		137,604
Invictus Co., Term Loan B, 03/28/25(m)			375		371,009
Invictus Co., Term Loan B26, (LIBOR USD 1 Month + 6.75%), 9.24%, 03/30/26(d)			75		74,250
IPS Acquisition LLC, Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.75%, 11/07/24			158		154,836
Messer Industries LLC, Term Loan, 03/01/26(m)			822		804,023
OXEA Holding Vier GmbH, Term Loan, 10/14/24(m)			621		617,586
PQ Corp., Term Loan, 02/08/25(m)			705		696,216
Starfruit Finco BV, Term Loan, (LIBOR USD 1 Month + 3.25%), 5.74%, 10/01/25			352		346,502
Vectra Co., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 02/23/25			139		132,034
					5,875,955
Commercial Services & Supplies — 1.0%
Access CIG LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 6.24%, 02/27/25			95		94,018
Advanced Disposal Services, Inc., Term Loan, 11/10/23(m)			650		646,657
Allied Universal Holdco LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 4.25%), 6.75%, 07/28/22			200		194,263
Brand Energy & Infrastructure Services, Inc., Term Loan, 06/21/24(m)			739		706,166
Camelot Group LLC, Term Loan B, 10/03/23(m)			1,314		1,305,364
Capri Acquisitions Bidco Ltd., Term Loan, (LIBOR USD 3 Month + 3.25%), 5.99%, 11/01/24			418		411,009
Cast & Crew Payroll LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 4.00%), 6.50%, 01/16/26			430		431,290

Security		Par (000)		Value
Commercial Services & Supplies (continued)
EnergySolutions LLC, Term Loan, (LIBOR USD 3 Month + 3.75%), 6.35%, 05/30/25	USD		82	$	72,355
GFL Environmental, Inc., Term Loan B, 05/30/25(m)			810		781,158
Guidehouse LLP, Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.50%, 03/15/25(d)			57		55,993
Harland Clarke Holdings Corp., Term Loan B, (LIBOR USD 3 Month + 4.75%), 7.35%, 11/03/23			126		112,597
Information Resources, Term Loan, 11/07/25(m)			122		119,778
Inmar, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 4.00%), 6.60%, 05/01/24			128		122,069
KAR Auction Services, Inc., Term Loan B5, (LIBOR USD 3 Month + 2.50%), 5.13%, 03/09/23(d)			417		414,977
Prime Security Services Borrower LLC, 1st Lien Term Loan, 05/02/22(m)			964		952,994
Safe Fleet Holdings LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.00%), 5.49%, 02/01/25			138		134,107
Safe Fleet Holdings LLC, 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 9.24%, 02/02/26			105		100,013
ServiceMaster Co. LLC (The), 1st Lien Term Loan, (LIBOR USD 1 Month + 2.50%), 5.00%, 11/08/23			86		85,926
Tempo Acquisition LLC, Term Loan, 05/01/24(m)			700		692,347
West Corp., Term Loan:
(LIBOR USD 3 Month + 3.50%), 6.13% , 10/10/24			25		22,979
(LIBOR USD 3 Month + 4.00%), 6.63% , 10/10/24			573		536,946
					7,993,006
Communications Equipment — 0.1%
Avaya, Inc., Term Loan B, 12/15/24(m)			371		368,690
Ciena Corp., Term Loan B1, (LIBOR USD 1 Month + 2.00%), 4.49%, 09/26/25			280		279,493
					648,183
Construction & Engineering — 0.1%
Ply Gem, Inc., Term Loan B, (LIBOR USD 3 Month + 3.75%), 6.55%, 04/01/25			139		133,204
SRS Distribution, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.75%, 05/23/25			283		269,892
					403,096
Construction Materials — 0.2%
ABC Supply Co., Inc., Term Loan B, 10/31/23(m)			805		783,462
Foundation Building Materials, Inc., 1st Lien Term Loan B, 08/13/25(m)			248		242,860
HD Supply Waterworks Ltd., Term Loan, (LIBOR USD 3 Month + 3.00%), 5.63%, 08/01/24			660		653,488
Plaskolite, Inc., 1st Lien Term Loan, 12/15/25(m)			240		239,807
					1,919,617
Containers & Packaging — 0.5%
Berry Global, Inc., Term Loan Q, 10/01/22(m)			1,142		1,133,431
BWAY Holding Co., Term Loan, (LIBOR USD 3 Month + 3.25%), 6.03%, 04/03/24			417		405,904
Charter NEX US, Inc., 1st Lien Term Loan, 05/16/24(m)			413		400,060
Flex Acquisition Co., Inc., Term Loan: 12/29/23(m)			512		495,350
(LIBOR USD 1 Month + 3.25%),5.74% - 5.88%, 06/30/25			362		350,505
Reynolds Group Holdings, Inc., 1st Lien Term Loan, 02/05/23(m)			1,404		1,386,432
					4,171,682
Distributors — 0.1%
Avantor, Inc., Term Loan, 11/21/24(m)			960		960,946

SCHEDULES OF INVESTMENTS 29

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Consumer Services — 0.6%
AlixPartners LLP, 1st Lien Term Loan, 04/04/24(m)	USD		1,136	$	1,126,532
Allied Universal Holdco LLC, Term Loan:
(LIBOR USD 1 Month + 3.75%), 6.25% , 07/28/22			315		303,517
(LIBOR USD 1 Month + 8.50%), 11.00% , 07/28/23			88		85,620
Bright Horizons Family Solutions LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 1.75%), 4.25%, 11/07/23			359		356,556
BrightView Landscapes LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.50%), 5.00%, 08/08/25			409		405,731
Equian Buyer Corp., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.75%, 05/20/24			346		339,426
iQor US, Inc., 1st Lien Term Loan, 04/01/21(m)			60		55,983
Research Now, Inc., Term Loan, (LIBOR USD 1 Month + 5.50%), 8.00%, 12/07/24			227		225,792
SIRVA Worldwide, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 5.50%), 8.00% - 8.24%, 08/04/25(d)			248		241,605
Spin Holdco, Inc., 1st Lien Term Loan B, 11/14/22(m)			799		775,466
TierPoint LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 6.25%, 05/06/24			238		225,182
Trugreen Ltd. Partnership, 1st Lien Term Loan B, 03/13/26(m)			516		516,664
Weight Watchers International, Inc., Term Loan B, 11/29/24(m)			365		346,205
					5,004,279
Diversified Financial Services — 0.4%
CLEAResult Consulting, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 6.00%, 08/15/25(d)			135		132,614
Edelman Financial Center LLC (The), 1st Lien Term Loan B, (LIBOR USD 3 Month + 3.25%), 6.04%, 07/21/25			237		235,254
Genuine Financial Holdings LLC, Term Loan, 07/12/25(m)			374		368,990
LTI Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 6.00%, 09/06/25			252		242,138
SMG US Midco 2, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 01/23/25			324		319,312
SSH Group Holdings, Inc., Term Loan, 07/30/25(m)			256		253,029
Tank Holdings Corp., Term Loan, 12/30/24(m)			211		211,133
VICI Properties, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.49%, 12/20/24			1,150		1,128,547
WP CPP Holdings, Term Loan B, (LIBOR USD 3 Month + 3.75%), 6.51%, 03/16/25			83		81,862
Ziggo Secured Finance Partnership, Term Loan, 04/15/25(m)			571		556,037
					3,528,916
Diversified Telecommunication Services — 0.5%
Altice Financing SA, Term Loan, (LIBOR USD 1 Month + 2.75%), 5.24%, 01/31/26			329		312,676
Altice Financing SA, Term Loan B, (LIBOR USD 1 Month + 2.75%), 5.23%, 07/15/25			54		51,135
Altice France SA, Term Loan, (LIBOR USD 1 Month + 4.00%), 6.48%, 08/14/26			512		489,441
CenturyLink, Inc., Term Loan:
(LIBOR USD 1 Month + 2.75%), 5.25% , 11/01/22			323		322,241
01/31/25(m)			555		543,666
Consolidated Communications, Inc., Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.50%, 10/05/23			60		56,391
Level 3 Financing, Inc., Term Loan, 02/22/24(m)			709		699,888
MTN Infrastructure TopCo, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 11/15/24			439		435,141
Numericable US LLC, Term Loan, (LIBOR USD 1 Month + 3.69%), 6.17%, 01/31/26			307		290,528

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
Telesat Canada, Term Loan, (LIBOR USD 3 Month + 2.50%), 5.11%, 11/17/23	USD		143	$	140,535
Zayo Group LLC, Term Loan, (LIBOR USD 1 Month + 2.00%), 4.50%, 01/19/21			657		652,821
					3,994,463
Electric Utilities — 0.2%
Calpine Construction Finance Co. LP, Term Loan, (LIBOR USD 1 Month + 2.50%), 5.00%, 01/15/25			107		105,157
Compass Power Generation LLC, Term Loan B, (LIBOR USD 1 Month + 3.50%), 6.00%, 12/20/24			169		168,558
EIF Channelview Cogeneration LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 4.25%), 6.75%, 05/03/25			59		59,109
Granite Acquisition, Inc., 1st Lien Term Loan B, (LIBOR USD 3 Month + 3.50%), 6.30%, 12/17/21			426		424,756
Granite Acquisition, Inc., 1st Lien Term Loan C, (LIBOR USD 3 Month + 3.50%), 6.10%, 12/17/21			66		65,466
Vistra Operations Co. LLC, Term Loan, (LIBOR USD 1 Month + 2.00%), 4.50%, 08/04/23			452		446,210
Vistra Operations Co. LLC, Term Loan B3, (LIBOR USD 1 Month + 2.00%), 4.48%, 12/31/25			407		400,021
					1,669,277
Electrical Equipment — 0.1%
Dell International LLC, Term Loan, (LIBOR USD 1 Month + 2.00%), 4.50%, 09/07/23			666		658,333
Dell International LLC, Term Loan A2, (LIBOR USD 6 Month + 2.50%), 4.25%, 09/07/21			60		59,904
GrafTech International Ltd., 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.50%), 6.00%, 02/12/25(d)			408		406,359
					1,124,596
Electronic Equipment, Instruments & Components — 0.0%
Zebra Technologies Corp., Term Loan B18, (LIBOR USD 1 Month + 1.75%), 4.24%, 10/27/21			140		139,845
Energy Equipment & Services — 0.1%
McDermott International, Inc., Term Loan, (LIBOR USD 1 Month + 5.00%), 7.50%, 05/12/25			423		404,217
Weatherford International Ltd., Term Loan, (LIBOR USD 1 Month + 1.43%), 3.93%, 07/13/20			214		208,305
Woodford Express LLC, 1st Lien Term Loan B, 01/27/25(m)			31		30,424
					642,946
Entertainment — 0.2%
Creative Artists Agency LLC, Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.49% - 5.49%, 02/15/24			628		620,850
Kingpin Intermediate Holdings LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.50%), 6.00%, 07/03/24			411		408,136
Live Nation Entertainment, Inc., 1st Lien Term Loan B3, (LIBOR USD 1 Month + 1.75%), 4.25%, 10/31/23			134		133,013
William Morris Endeavor Entertainment LLC, Term Loan B, (LIBOR USD 3 Month + 2.75%), 5.36%, 05/18/25			686		648,389
					1,810,388
Equity Real Estate Investment Trusts (REITs) — 0.2%
Capital Automotive LP, Term Loan, (LIBOR USD 1 Month + 2.50%), 5.00%, 03/25/24			132		130,353
DTZ US Borrower LLC, Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 12/31/22			657		650,380
GEO Group Refinancing, Term Loan, (LIBOR USD 1 Month + 2.00%), 4.50%, 03/22/24			329		313,121

30 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Equity Real Estate Investment Trusts (REITs) (continued)
Iron Mountain, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 1.75%), 4.25%, 01/02/26	USD		423	$	409,353
RHP Hotel Properties LP, 1st Lien Term Loan B, (LIBOR USD 3 Month + 2.00%), 4.78%, 05/11/24			277		274,012
					1,777,219
Food & Staples Retailing — 0.2%
Albertson’s LLC, Term Loan B7, (LIBOR USD 1 Month + 3.00%), 5.50%, 11/17/25			510		503,319
H-Food Holdings LLC, Term Loan, (LIBOR USD 1 Month + 3.69%), 6.19%, 05/23/25			116		112,871
H-Food Incremental, Term Loan, (LIBOR USD 1 Month + 4.00%), 6.50%, 05/23/25			359		352,891
US Foods, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.50%, 06/27/23			557		548,208
					1,517,289
Food Products — 0.5%
8th Avenue Food & Provisions, Inc. Term Loan, (LIBOR USD 1 Month + 3.75%), 6.24%, 10/01/25			150		149,476
ARAMARK Services, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 1.75%), 4.25%, 03/11/25			410		406,848
CHG PPC Parent LLC, Term Loan, (LIBOR USD 1 Month + 2.75%), 5.25%, 03/31/25(d)			99		97,513
Chobani LLC, Term Loan, 10/10/23(m)			391		373,433
Hostess Brands LLC, Term Loan, 08/03/22(m)			638		618,843
JBS USA Lux SA, Term Loan, (LIBOR USD 1 Month + 2.50%), 4.98% - 5.00%, 10/30/22			974		966,037
Nomad Foods Ltd., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.73%, 05/15/24			254		249,071
Post Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.49%, 05/24/24			331		327,801
TMK Hawk Parent Corp., Term Loan, (LIBOR USD 3 Month + 3.50%), 4.82% - 6.00%, 08/28/24			675		595,081
					3,784,103
Gas Utilities — 0.0%
Midcoast Operating LP, Term Loan, (LIBOR USD 3 Month + 5.50%), 8.10%, 06/30/25			326		324,307
Health Care Equipment & Supplies — 0.2%
CryoLife, Inc., Term Loan, 12/02/24(d)(m)			166		165,311
Immucor, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 7.80%, 06/15/21			812		809,619
Universal Hospital Services, Inc., Delayed Draw Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.50%, 10/18/25(d)			162		161,393
					1,136,323
Health Care Providers & Services — 1.1%
Acadia Healthcare Co., Inc., Term Loan B2, (LIBOR USD 1 Month + 2.50%), 5.00%, 02/16/23			120		118,654
AHP Health Partners, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 7.00%, 06/30/25			140		139,667
CHG Healthcare Services, Inc., Term Loan B, 06/07/23(m)			929		922,697
Concentra, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.50%), 8.99%, 07/25/23			371		370,998
Concentra, Inc., Term Loan, 06/01/22(m)			325		322,004
DaVita Healthcare, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.75%), 5.25%, 06/24/21			162		161,900
Dentalcorp Perfect Smile ULC, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.75%), 6.25%, 05/31/25(d)			123		120,147
Dentalcorp Perfect Smile ULC, Delayed Draw Term Loan, (LIBOR USD 1 Month + 3.75%), 6.25%, 05/31/25(d)			23		22,133

Security		Par (000)		Value
Health Care Providers & Services (continued)
Diplomat Pharmacy, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 7.00%, 12/20/24	USD		222	$	210,867
Envision Healthcare Corp., Term Loan, 10/10/25(m)			652		609,420
Gentiva Health Services, Inc., Term Loan, (LIBOR USD 1 Month + 7.00%), 9.50%, 07/02/26			67		67,888
Gentiva Health Services, Inc., Term Loan U, (LIBOR USD 1 Month + 3.75%), 6.25%, 07/02/25(d)			349		349,899
HC Group Holdings III, Inc.,Term Loan B, 04/07/22(d)(m)			464		462,168
HCA, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.50%, 03/13/25			570		569,256
Lifescan Global Corp., Term Loan U, (LIBOR USD 3 Month + 6.00%), 8.80%, 10/01/24			51		49,046
MPH Acquisition Holdings LLC, Term Loan, 06/07/23(m)			950		918,636
nThrive, Inc., 1st Lien Term Loan, 10/20/22(d)(m)			665		636,798
Orchid Orthopedic Solutions LLC, Term Loan, (LIBOR USD 3 Month + 4.50%), 7.10%, 02/28/26(d)			133		133,166
Ortho-Clinical Diagnostics, Inc., Term Loan B, 06/30/25(m)			904		869,765
ScribeAmerica Intermediate Holdco LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 4.50%), 6.98%, 04/03/25			168		165,629
Sound Inpatient Physicians, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 2.75%), 5.25%, 06/27/25			136		134,201
Sound Inpatient Physicians, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 9.25%, 06/26/26			53		52,669
Team Health Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 5.25%, 02/06/24			341		302,405
Vizient, Inc., Term Loan B, (LIBOR USD 1 Month + 2.75%), 5.25%, 02/13/23			170		169,362
Wink Holdco, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 12/02/24			430		415,833
WP CityMD Bidco LLC, Term Loan, (LIBOR USD 3 Month + 3.50%), 6.10%, 06/07/24			139		133,887
					8,429,095
Health Care Technology — 0.3%
Athenahealth, Inc., Term Loan B, 02/05/26(m)			1,084		1,067,740
Change Healthcare Holdings LLC, Term Loan B, 03/01/24(m)			707		697,324
Goodrx, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.49%, 10/10/25			243		240,348
IQVIA, Inc., Term Loan B, (LIBOR USD 3 Month + 2.00%), 4.60%, 03/07/24			61		60,761
Press Ganey Holdings, Inc., 1st Lien Term Loan, 10/23/23(m)			527		514,975
Press Ganey Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 6.50%), 9.00%, 10/21/24			61		60,397
					2,641,545
Hotels, Restaurants & Leisure — 1.6%
1011778 BC ULC, Term Loan, (LIBOR USD 1 Month + 2.25%), 4.75%, 02/16/24			1,799		1,769,250
Aristocrat Leisure Ltd., Term Loan B, (LIBOR USD 3 Month + 1.75%), 4.53%, 10/19/24			280		274,384
Boyd Gaming Corp., Term Loan B, (LIBOR USD 3 Month + 2.25%), 4.66%, 09/15/23			817		809,278
Caesars Resort Collection LLC, Term Loan, (LIBOR USD 1 Month + 2.75%), 5.25%, 12/23/24			974		959,653
CCM Merger, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.75%, 08/06/21			391		389,584
CEC Entertainment, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.75%, 02/12/21			338		327,063

SCHEDULES OF INVESTMENTS 31

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
CityCenter Holdings LLC, Term Loan B, 04/18/24(m)	USD		1,064	$	1,043,624
Eldorado Resorts, Inc., Term Loan B, (LIBOR USD 3 Month + 2.25%), 4.88%, 04/17/24			140		138,600
Four Seasons Holdings, Inc., Term Loan F, 11/30/23(m)			628		622,153
Golden Nugget, Inc., 1st Lien Term Loan, 10/04/23(m)			44		43,197
GVC Holdings plc, Term Loan B2, 03/15/24(m)			363		358,891
Hilton Worldwide Finance LLC, 1st Lien Term Loan B2, (LIBOR USD 1 Month + 1.75%), 4.24%, 10/25/23			357		356,278
IRB Holding Corp., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.74%, 02/05/25			745		725,438
KFC Holding Co., Term Loan B, (LIBOR USD 1 Month + 1.75%), 4.23%, 04/03/25			414		411,177
Lakeland Tours LLC, Term Loan B, (LIBOR USD 3 Month + 4.00%), 6.61%, 12/16/24			243		241,168
Marriott Ownership Resorts, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.75%, 08/29/25			311		309,275
MGM Growth Properties LLC, Term Loan B, 03/21/25(m)			997		982,625
Playa Resorts Holding BV, 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.75%), 5.25%, 04/29/24			291		279,499
Scientific Games International, Inc., Term Loan B, 08/14/24(m)			715		695,190
Stars Group Holdings BV, Term Loan, (LIBOR USD 3 Month + 3.50%), 6.10%, 07/10/25			1,236		1,232,311
Station Casinos LLC, Term Loan B, 06/08/23(m)			587		580,107
Wyndham Hotels & Resorts, Inc., Term Loan B, (LIBOR USD 1 Month + 1.75%), 4.25%, 05/30/25			358		353,303
Wynn Resorts Ltd., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.75%, 10/22/24			159		155,497
					13,057,545
Household Durables — 0.0%
Serta Simmons Bedding LLC, Term Loan:
(LIBOR USD 1 Month + 3.50%),5.98% - 5.99% , 11/08/23			179		131,819
(LIBOR USD 1 Month + 8.00%), 10.49% , 11/08/24			17		8,473
Springs Window Fashions LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 4.25%), 6.74%, 05/25/25			179		176,194
					316,486
Household Products — 0.1%
Energizer Holdings, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.73%, 06/20/25			208		205,400
Mastronardi Produce Ltd., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.74%, 05/01/25			134		133,609
Prestige Brands, Inc., Term Loan, (LIBOR USD 1 Month + 2.00%), 4.50%, 01/26/24			318		314,346
Varsity Brands, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 6.00%, 12/16/24			74		73,026
					726,381
Independent Power and Renewable Electricity Producers — 0.2%
AES Corp. (The), Term Loan, (LIBOR USD 3 Month + 1.75%), 4.38%, 05/31/22			242		240,656
Calpine Corp., 1st Lien Term Loan B5, (LIBOR USD 3 Month + 2.50%), 5.11%, 01/15/24			79		78,350
Calpine Corp., Term Loan B6, (LIBOR USD 3 Month + 2.50%), 5.11%, 01/15/23			342		341,671
Calpine Corp., Term Loan B7, (LIBOR USD 3 Month + 2.50%), 5.11%, 05/31/23			130		128,389
Calpine Corp., Term Loan B9, 03/20/26(m)			467		462,008
Dayton Power and Light Co. (The), Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.50%, 08/24/22(d)			107		106,664
NRG Energy, Inc., Term Loan, 06/30/23(m)			529		521,975
					1,879,713

Security		Par (000)		Value
Industrial Conglomerates — 0.4%
Accudyne Industries LLC, Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 08/18/24	USD		675	$	673,854
Filtration Group Corp., Term Loan B, 03/29/25(m)			1,047		1,039,335
PSAV Holdings LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 3.25%), 5.66% - 5.88%, 02/21/25			335		325,453
RBS Global, Inc., Term Loan, (LIBOR USD 1 Month + 2.00%), 4.50%, 08/21/24			296		292,736
Uber Technologies, Inc., Term Loan:
07/13/23(m)			164		162,475
(LIBOR USD 1 Month + 4.00%), 6.49% , 03/14/25			283		283,041
Vertiv Co., Term Loan B, (LIBOR USD 3 Month + 4.00%), 6.63%, 11/30/23			684		641,244
					3,418,138
Insurance — 0.8%
Achilles Acquisition LLC, Term Loan, (LIBOR USD 1 Month + 4.00%), 6.50%, 10/03/25			210		208,162
Alliant Holdings Intermediate LLC, Term Loan, (LIBOR USD 1 Month + 2.75%), 5.23%, 05/09/25			658		630,941
AmWINS Group, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 5.24% - 5.25%, 01/25/24			743		731,905
AssuredPartners, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 10/22/24			379		366,333
Asurion LLC, 1st Lien Term Loan B6, (LIBOR USD 1 Month + 3.00%), 5.50%, 11/03/23			459		456,690
Asurion LLC, 2nd Lien Term Loan B2, (LIBOR USD 1 Month + 6.50%), 9.00%, 08/04/25			594		601,176
Asurion LLC, Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 11/03/24			274		271,335
Asurion LLC, Term Loan B4, 08/04/22(m)			478		474,606
Geronimo Intermediate Parent, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 06/22/23			212		210,363
Hub International Ltd., Term Loan B, 04/25/25(m)			555		536,441
Sedgwick, 1st Lien Term Loan, 12/31/25(m)			1,509		1,475,577
USI, Inc., 1st Lien Term Loan B, (LIBOR USD 3 Month + 3.00%), 5.60%, 05/16/24			500		483,983
					6,447,512
IT Services — 2.3%
Altran Technologies SA, Term Loan, (LIBOR USD 3 Month + 2.25%), 4.88%, 03/20/25			99		97,082
Applied Systems, Inc., Term Loan:
09/19/24(m)			674		666,376
(LIBOR USD 1 Month + 7.00%), 9.50% , 09/19/25			100		100,155
Boxer Parent Co., Inc., Term Loan B, 10/02/25(m)			626		612,805
CCC Information Services, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 9.25%, 04/28/25			134		132,828
CCC Information Services, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 04/29/24			271		265,990
Epicor Software Corp., 1st Lien Term Loan, 06/01/22(m)			504		497,455
Evertec, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 6.00%, 11/27/24			212		211,936
First Data Corp., Term Loan, (LIBOR USD 1 Month + 2.00%), 4.49%, 07/08/22			1,276		1,272,939
Global Payments, Inc., Term Loan B:
(LIBOR USD 1 Month + 1.75%), 4.25% , 04/21/23			149		147,559
10/17/25(m)			818		807,047
GoDaddy, Inc., Term Loan B, 02/15/24(m)			572		567,104
Greeneden US Holdings I LLC, Term Loan B, 12/01/23(m)			410		404,323
IG Investments Holdings LLC, Term Loan, (LIBOR USD 3 Month + 3.50%), 6.00% - 6.10%, 05/23/25			727		721,953

32 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
IT Services (continued)
Mitchell International, Inc., 1st Lien Term Loan, 11/29/24(m)	USD		941	$	903,180
Mitchell International, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 9.75%, 12/01/25			137		132,908
Peak 10 Holding Corp., 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 9.99%, 08/01/25			168		147,281
Peak 10 Holding Corp., Term Loan, (LIBOR USD 3 Month + 3.50%), 6.10%, 08/01/24			208		189,867
Rackspace Hosting, Inc., Term Loan, (LIBOR USD 3 Month + 3.00%), 5.74%, 11/03/23			359		335,757
Renaissance Learning, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 05/24/25			144		137,784
Sabre GLBL, Inc., Term Loan, 02/22/24(m)			732		726,013
Solera LLC, Term Loan B1, (LIBOR USD 1 Month + 2.75%), 5.25%, 03/03/23			1,230		1,218,743
Sophia LP, 1st Lien Term Loan B, 09/30/22(m)			1,145		1,136,158
SS&C Technologies Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.75%, 04/16/25			342		338,799
SS&C Technologies Holdings, Inc., Term Loan B1, (LIBOR USD 1 Month + 2.25%), 4.75%, 07/08/22			514		509,537
SS&C Technologies, Inc., 1st Lien Term Loan B5, 04/16/25(m)			1,478		1,464,305
TKC Holdings, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 8.00%), 10.50%, 02/01/24			139		134,961
TKC Holdings, Inc., Term Loan, 02/01/23(m)			299		292,479
Trans Union LLC, Term Loan, (LIBOR USD 1 Month + 2.00%), 4.50%, 04/10/23			1,304		1,290,626
Verscend Holding Corp., Term Loan B, 08/27/25(m)			1,179		1,168,574
Vertafore, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.75%, 07/02/25			249		244,565
WEX, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.75%, 06/30/23			892		882,585
Worldpay LLC, Term Loan, 08/09/24(m)			402		401,317
					18,160,991
Life Sciences Tools & Services — 0.0%
Albany Molecular Research, Inc., Term Loan:
(LIBOR USD 1 Month + 3.25%), 5.75% , 08/30/24(d)			161		158,264
(LIBOR USD 1 Month + 7.00%), 9.50% , 08/30/25			60		59,100
					217,364
Machinery — 0.4%
Doosan Infracore International, Inc., Term Loan B, (LIBOR USD 3 Month + 2.00%), 4.60%, 05/18/24			236		230,862
Gardner Denver, Inc., Term Loan B, 07/30/24(m)			538		537,252
Gates Global LLC, Term Loan B, 04/01/24(m)			1,055		1,040,250
Pike Corp., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.50%), 6.00%, 03/12/25			133		132,998
Terex Corp., Term Loan, (LIBOR USD 1 Month + 2.75%), 5.25%, 01/31/24			71		70,793
Titan Acquisition Ltd., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 03/28/25			861		798,920
WELBILT, Inc., Term Loan, (LIBOR USD 1 Month + 2.50%), 5.00%, 10/11/25(d)			243		239,552
					3,050,627
Media — 1.0%
Ascend Learning LLC, Term Loan B, 07/12/24(m)			282		275,630
Cable One, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 4.24%, 05/01/24			143		142,088
Cablevision CSC Holdings LLC, Term Loan, (LIBOR USD 1 Month + 2.25%), 4.73%, 07/17/25			230		223,008

Security		Par (000)		Value
Media (continued)
Charter Communications Operating LLC, Term Loan B, 04/30/25(m)	USD		815	$	808,908
CSC Holdings LLC, Term Loan B, (LIBOR USD 1 Month + 2.50%), 4.98%, 01/25/26			330		322,849
Gray Television, Inc., Term Loan, (LIBOR USD 1 Month + 2.50%), 4.98%, 01/02/26			282		278,942
Gray Television, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.73%, 02/07/24			213		210,208
iHeartCommunications, Inc., Tranche D Term Loan, (LIBOR USD 3 Month + 6.75%), 11.24%, 01/30/20(f)(g)			388		275,855
iHeartCommunications, Inc., Tranche E Term Loan, (LIBOR USD 1 Month + 9.50%), 12.00%, 07/30/19(f)(g)			250		177,875
Intelsat Jackson Holdings SA, Term Loan:
(LIBOR USD 1 Month + 3.75%), 6.24% , 11/27/23			70		68,884
(LIBOR USD 1 Month + 4.50%), 6.99% , 01/02/24			405		405,101
Learfield Communications LLC, Term Loan, (LIBOR USD 1 Month + 3.25%), 4.90% - 5.75%, 12/01/23			490		487,559
Lions Gate Entertainment, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.75%, 03/24/25			325		320,362
Meredith Corp., Term Loan B, (LIBOR USD 1 Month + 2.75%), 5.25%, 01/31/25			192		191,318
Radiate Holdco LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 02/01/24			276		269,807
Telenet Financing LLC, Term Loan, 08/15/26(m)			565		552,471
Trader Corp., Term Loan, 09/28/23(d)(m)			786		778,502
Tribune Media Co., 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.50%, 01/26/24			532		531,422
Unitymedia Finance LLC, Term Loan:
06/01/23(m)			792		781,977
(LIBOR USD 1 Month + 2.25%), 4.73% , 01/15/26			50		49,403
Unitymedia Hessen GmbH & Co. KG, 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.73%, 09/30/25			345		341,036
Univision Communications, Inc., Term Loan C5, (LIBOR USD 1 Month + 2.75%), 5.25%, 03/15/24			217		203,660
Virgin Media Bristol LLC, Term Loan, 01/15/26(m)			572		565,462
					8,262,327
Metals & Mining — 0.1%
Ball Metalpack Finco LLC, Term Loan, (LIBOR USD 1 Month + 4.50%), 7.00%, 07/31/25			181		180,129
Equinox Holdings, Inc., Term Loan B, 03/08/24(m)			272		270,403
Oxbow Carbon LLC, Term Loan, (LIBOR USD 1 Month + 3.50%), 6.00%, 01/04/23(d)			59		59,062
					509,594
Multiline Retail — 0.2%
Harbor Freight Tools USA, Inc., Term Loan, 08/18/23(m)			282		274,878
Hudsons Bay Co., 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.74%, 09/30/22			381		371,117
Leslie’s Poolmart, Inc., Term Loan B, (LIBOR USD 3 Month + 3.50%), 6.08%, 08/16/23			247		238,287
Neiman Marcus Group Ltd. LLC, Term Loan, (LIBOR USD 1 Month + 3.25%), 5.73%, 10/25/20			271		251,511
					1,135,793
Multi-Utilities — 0.0%
Exgen Renewables IV LLC, Term Loan, (LIBOR USD 3 Month + 3.00%), 5.63%, 11/28/24			103		96,280
USIC Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.75%, 12/08/23			199		193,773
					290,053

SCHEDULES OF INVESTMENTS 33

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels — 0.3%
BCP Raptor II LLC, Term Loan, (LIBOR USD 3 Month + 4.75%), 7.37%, 10/22/25	USD		136	$	128,248
California Resources Corp., Term Loan:
(LIBOR USD 1 Month + 10.38%), 12.87% , 12/31/21			695		732,030
(LIBOR USD 1 Month + 4.75%), 7.25%, 12/31/22			350		343,658
CNX Resources Corp., Term Loan: (LIBOR USD 1 Month + 4.25%), 6.75%, 11/26/21			239		241,689
Edgewater Generation LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 6.25%, 12/13/25			130		129,286
EURO Garages Ltd., Term Loan B, (LIBOR USD 3 Month + 4.00%), 6.60%, 02/07/25			276		269,252
EURO Garages Ltd., Term Loan B1, (LIBOR USD 3 Month + 4.00%), 6.60%, 02/07/25			114		111,061
Gavilan Resources LLC, 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.00%), 8.49%, 03/01/24			160		123,793
					2,079,017
Pharmaceuticals — 0.8%
Akorn, Inc., Term Loan, (LIBOR USD 1 Month + 5.50%), 8.00%, 04/16/21			96		77,195
Alphabet Holding Co., Inc., Term Loan, (LIBOR USD 1 Month + 7.75%), 10.25%, 09/26/25			117		94,624
Amneal Pharmaceuticals LLC, Term Loan B18, 03/21/25(m)			650		648,008
Bausch Health Co., Inc., Term Loan, 06/02/25(m)			1,755		1,742,315
Catalent Pharma Dollar, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.75%, 05/20/24			332		330,335
Endo Pharmaceuticals, Inc., Term Loan B, 04/29/24(m)			741		726,332
Grifols Worldwide Operations Ltd., Term Loan, (LIBOR USD 3 Month + 2.25%), 4.66%, 01/31/25			733		727,496
Jaguar Holding Co. I, Term Loan, 08/18/22(m)			1,144		1,130,800
Mallinckrodt International Finance SA, 1st Lien Term Loan B, (LIBOR USD 3 Month + 2.75%), 5.35%, 09/24/24			153		142,292
National Veterinary Associates, Inc., Term Loan B3, (LIBOR USD 1 Month + 2.75%), 5.25%, 02/02/25			541		521,545
					6,140,942
Professional Services — 0.1%
Dun & Bradstreet Corp. (The), 1st Lien Term Loan B, 02/06/26(m)			1,073		1,058,246
Real Estate Management & Development — 0.2%
ESH Hospitality, Inc. Term Loan B, 08/30/23(m)			590		585,934
Forest City, Term Loan B, 12/31/25(m)			483		483,997
Realogy Group LLC, Term Loan, (LIBOR USD 1 Month + 2.25%), 4.73%, 02/08/25			145		140,371
					1,210,302
Semiconductors & Semiconductor Equipment — 0.2%
MaxLinear, Inc., Term Loan, (LIBOR USD 1 Month + 2.50%), 4.98%, 05/13/24(d)			46		46,320
Microchip Technology, Inc., Term Loan, 05/29/25(m)			1,006		993,378
ON Semiconductor Corp., Term Loan, (LIBOR USD 1 Month + 1.75%), 4.25%, 03/31/23			102		101,151
					1,140,849
Software — 1.4%
DTI Holdco, Inc., Term Loan, (LIBOR USD 3 Month + 4.75%), 7.49%, 09/29/23			316		295,118
Financial & Risk US Holdings, Inc., Term Loan, 10/01/25(m)			1,893		1,836,067
Infor US, Inc., Term Loan, 02/01/22(m)			1,750		1,740,491
Informatica LLC, Term Loan B, 08/05/22(m)			957		955,491

Security		Par (000)		Value
Software (continued)
Kronos, Inc., 1st Lien Term Loan B, 11/01/23(m)	USD		1,593	$	1,577,079
Kronos, Inc., 2nd Lien Term Loan B, (LIBOR USD 3 Month + 8.25%), 10.99%, 11/01/24			365		369,792
McAfee LLC, Term Loan, 09/30/24(m)			1,002		1,000,346
PowerSchool Group LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 3.25%), 5.99%, 07/31/25			251		243,515
RP Crown Parent LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 2.75%), 5.25%, 10/12/23			249		245,856
Solar Winds Holdings, Inc., Term Loan B, 02/05/24(m)			1,315		1,299,331
SS&C Technologies Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.75%, 04/16/25			246		243,538
TIBCO Software, Inc., Term Loan, 12/04/20(m)			1,134		1,128,487
					10,935,111
Specialty Retail — 0.1%
Belron Finance US LLC, Term Loan B, (LIBOR USD 3 Month + 2.25%), 4.99%, 11/07/24(d)			391		386,530
Belron Finance US LLC, Term Loan B1, (LIBOR USD 3 Month + 2.50%), 5.19%, 11/06/25			93		91,435
Optiv, Inc., Term Loan, 02/01/24(m)			105		100,155
Staples, Inc., Term Loan, (LIBOR USD 1 Month + 4.00%), 6.49%, 09/12/24			197		195,421
					773,541
Technology Hardware, Storage & Peripherals — 0.1%
Western Digital Corp., 1st Lien Term Loan B, 04/29/23(m)			1,071		1,041,328
Trading Companies & Distributors — 0.2%
Beacon Roofing Supply, Inc., Term Loan B, 01/02/25(m)			393		382,509
HD Supply, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 4.25%, 10/17/23			812		801,834
United Rentals, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 4.25%, 10/31/25			208		206,655
					1,390,998
Wireless Telecommunication Services — 0.3%
Digicel International Finance Ltd., Term Loan, (LIBOR USD 3 Month + 3.25%), 5.88%, 05/27/24			296		262,468
Hargray Communications Group, Inc., Term Loan, 05/16/24(m)			408		401,949
New Lightsquared LLC, 1st Lien Term Loan, 12/07/20(m)			354		258,103
SBA Senior Finance II LLC, 2nd Lien Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.50%, 04/06/25			577		563,854
Sprint Communications, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 2.50%), 5.00%, 02/02/24			659		640,805
Sprint Communications, Inc., Term Loan, 02/02/24(d)(m)			124		121,680
					2,248,859
Total Floating Rate Loan Interests — 19.2% (Cost: $155,608,423)					153,672,779
Foreign Agency Obligations — 1.1%
Chile — 0.1%
Empresa de Transporte de Pasajeros Metro SA, 4.75%, 02/04/24			520		547,589
Empresa Nacional del Petroleo, 3.75%, 08/05/26			600		592,647
					1,140,236

34 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
China — 0.1%
Chengdu Xingcheng Investment Group Co. Ltd., 2.50%, 03/20/21	EUR		100	$	103,973
China Minmetals Corp., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.72%), 3.75%(a)(k)	USD		300		292,924
Guangxi Financial Investment Group Co. Ltd., 5.75%, 01/23/21			200		191,950
					588,847
Colombia — 0.1%
Ecopetrol SA, 4.13%, 01/16/25			1,200		1,215,000
India — 0.2%
Oil India Ltd., 5.13%, 02/04/29			640		669,216
Power Finance Corp. Ltd., 3.75%, 12/06/27			303		282,640
Rural Electrification Corp. Ltd., 4.63%, 03/22/28			497		491,128
					1,442,984
Indonesia — 0.2%
Jasa Marga Persero Tbk. PT, 7.50%, 12/11/20	IDR		2,000,000		134,242
Pertamina Persero PT, 4.30%, 05/20/23	USD		1,250		1,284,531
Perusahaan Listrik Negara PT, 5.50%, 11/22/21			270		283,412
Wijaya Karya Persero Tbk. PT, 7.70%, 01/31/21	IDR		2,240,000		150,830
					1,853,015
Israel — 0.1%
Israel Electric Corp. Ltd., Series 6, 5.00%, 11/12/24(b)	USD		660		696,300
Mexico — 0.1%
Petroleos Mexicanos:
6.50%, 03/13/27			461		463,536
5.35%, 02/12/28			140		129,920
					593,456
Morocco — 0.1%
OCP SA, 4.50%, 10/22/25			600		592,200
Peru — 0.0%
Corp. Financiera de Desarrollo SA, 4.75%, 07/15/25			400		419,350
South Africa — 0.1%
Transnet SOC Ltd., 4.00%, 07/26/22			660		648,450
Total Foreign Agency Obligations — 1.1% (Cost: $9,222,230)					9,189,838
Foreign Government Obligations — 1.0%
Bahrain — 0.1%
Kingdom of Bahrain, 6.75%, 09/20/29			1,000		1,055,000
Chile — 0.1%
Corp. Nacional del Cobre de Chile, 3.63%, 08/01/27			500		499,488
Empresa Nacional del Petroleo, 5.25%, 11/06/29(b)			220		236,032
					735,520
Indonesia — 0.1%
Indonesia Asahan Aluminium Persero PT, 5.71%, 11/15/23(b)			200		215,873
Perusahaan Penerbit SBSN Indonesia III, 4.45%, 02/20/29			825		848,706
					1,064,579
Maldives — 0.1%
Republic of Maldives, 7.00%, 06/07/22			900		878,175
Pakistan — 0.1%
Islamic Republic of Pakistan, 6.88%, 12/05/27			1,000		984,505
Peru — 0.1%
Petroleos del Peru SA, 5.63%, 06/19/47			500		532,500

Security		Par (000)		Value
Qatar — 0.1%
State of Qatar, 3.25%, 06/02/26	USD		500	$	497,500
Sri Lanka — 0.3%
Democratic Socialist Republic of Sri Lanka:
6.83%, 07/18/26			1,000		1,000,755
7.85%, 03/14/29			1,475		1,545,247
					2,546,002
Total Foreign Government Obligations — 1.0% (Cost: $8,110,269)					8,293,781
		Shares
Investment Companies — 4.4%
Invesco Senior Loan ETF			320,000		7,244,800
iShares J.P. Morgan USD Emerging Markets Bond ETF(q)			106,911		11,766,625
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF			472,321		15,756,628
Total Investment Companies — 4.4% (Cost: $34,915,162)					34,768,053
		Par (000)
Non-Agency Mortgage-Backed Securities — 2.1%
Collateralized Mortgage Obligations — 0.9%
Alternative Loan Trust, Series2007-3T1, Class 1A1, 6.00%, 04/25/37			2,774		1,969,885
MCM Trust, Series 2018-NPL2, Class A, 4.00%, 10/25/28(b)(d)			1,800		1,781,507
New Residential Mortgage Loan Trust,Series 2019-RPL1, Class A1, 4.33%, 02/26/24(b)(e)			3,487		3,515,200
					7,266,592
Commercial Mortgage-Backed Securities — 1.2%
BAMLL Commercial Mortgage Securities Trust,Series 2016-ISQ, Class E, 3.61%, 08/14/34(b)(c)			1,000		933,346
Citigroup Commercial Mortgage Trust,Series 2016-GC37, Class D, 2.79%, 04/10/49(b)			1,000		794,491
Commercial Mortgage Trust, Series 2016-667M, Class D, 3.18%, 10/10/36(b)(c)			1,000		927,708
DBJPM Mortgage Trust, Series2016-C3, Class D, 3.49%, 08/10/49(b)(c)			530		476,090
DBUBS Mortgage Trust, Series 2017-BRBK, Class D, 3.53%, 10/10/34(b)(c)			990		980,167
GS Mortgage Securities Trust, Series 2015-GC32, Class D, 3.35%, 07/10/48			440		389,420
JPMCC Commercial Mortgage Securities Trust,Series 2017-JP5, Class D, 4.65%, 03/15/50(b)(c)			990		964,495
Morgan Stanley Bank of America Merrill Lynch Trust:
Series2015-C23, Class D, 4.13%, 07/15/50(b)(c)			1,000		940,038
Series2015-C25, Class D, 3.07%, 10/15/48			650		585,311
ROCKT, Series 2019, 0.00%, 04/20/32			500		500,000
Wells Fargo Commercial Mortgage Trust(c):
Series2015-C30, Class C, 4.50%, 09/15/58			1,000		1,021,536
Series 2016-NXS5, Class D, 4.88%, 01/15/59			750		729,935
					9,242,537
Interest Only Commercial Mortgage-Backed Securities — 0.0%
JPMorgan Chase Commercial Mortgage Securities Trust, Series2016-JP3, Class XC, 0.75%, 08/15/49(b)(c)			8,700		401,940
TotalNon-Agency Mortgage-Backed Securities — 2.1% (Cost: $16,686,794)					16,911,069

SCHEDULES OF INVESTMENTS 35

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Beneficial Interest (000)		Value
Other Interests — 0.0%(d)(g)(n)
Capital Markets — 0.0%
Millennium Corp. Claim	USD		811	$	—
Total Other Interests — 0.0%					—
		Par (000)
Preferred Securities — 0.9%
Capital Trusts — 0.9%(k)(l)
Banks — 0.4%
Bank of America Corp., Series Z, 6.50%			30		32,551
Citigroup, Inc., 5.95%			1,000		1,017,500
JPMorgan Chase & Co.:
6.22%			1,000		1,005,000
Series S, 6.75%			1,000		1,096,330
Lloyds Banking Group plc, 6.41%(b)			100		100,625
Wells Fargo & Co., Series U, 5.87%			40		42,740
					3,294,746
Capital Markets — 0.4%
Goldman Sachs Group, Inc. (The):
Series M, 5.38%			1,250		1,260,938
Series P, 5.00%			33		30,484
Morgan Stanley, Series J, 5.55%			1,250		1,272,000
					2,563,422
Oil, Gas & Consumable Fuels — 0.1%
Andeavor Logistics LP, Series A, 6.87%			1,000		1,005,000
Total Capital Trusts — 0.9% (Cost: $6,878,379)					6,863,168
		Shares
Preferred Stocks — 0.0%
Banks — 0.0%
CF-B L2 (D), LLC (Acquired 4/08/15- 12/15/15, cost $53,170)(k)(o)			56,090		27,871
Total Preferred Stocks — 0.0% (Cost: $54,874)					27,871
Total Preferred Securities — 0.9% (Cost: $6,933,253)					6,891,039
		Par (000)
U.S. Government Sponsored Agency Securities — 0.2%
Collateralized Mortgage Obligations — 0.2%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes, Series 2018-DNA1, Class B1, (LIBOR USD 1 Month + 3.15%), 5.64%, 07/25/30(a)			1,500		1,453,063
Total U.S. Government Sponsored Agency Securities — 0.2% (Cost: $1,500,000)					1,453,063
U.S. Treasury Obligations — 2.9%
U.S. Treasury Notes:
2.63%, 07/31/20			22,000		22,070,469
3.13%, 11/15/28			1,000		1,060,742

Security	Par (000)		Value
Total U.S. Treasury Obligations — 2.9% (Cost: $23,039,594)			$	23,131,211
Total Long-Term Investments — 91.7% (Cost: $731,693,467)				733,066,244
	Shares
Short-Term Securities — 10.2%(p)
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.37%(q)		80,552,516		80,552,516
JPMorgan US Treasury Plus Money Market Fund, Agency Class, 2.26%		1,015,401		1,015,401
Total Short-Term Securities — 10.2% (Cost: $81,567,917)				81,567,917
Total Options Purchased — 0.1% (Cost: $1,721,488)				795,427
Total Investments Before Options Written — 102.0% (Cost: $814,982,872)				815,429,588
Total Options Written — (0.0)% (Premium Received — $175,451)				(23,037	)
Total Investments Net of Options Written — 102.0% (Cost: $814,807,421)				815,406,551
Liabilities in Excess of Other Assets — (2.0)%				(16,253,672	)
Net Assets — 100.0%			$	799,152,879

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

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

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

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

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

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

^(g)  Non-income producing security.

^(h)  Convertible security.

⁽ⁱ⁾  Zero-coupon bond.

^(j)  Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

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

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

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

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

^(o)  Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $27,871, representing less than 0.05% of its net assets as of period end, and an original cost of $53,170.

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

36 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund

^(q)  During the period ended March 31, 2019, investments in issuers considered to be affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

Affiliated Persons and/or Related Parties	Shares Held at 09/30/18		Shares Purchased			Shares Sold			Shares Held at 03/31/19		Value at 03/31/19		Income		Net Realized Gain (Loss) (a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		13,740,642		66,811,874	(b)		—			80,552,516	$	80,552,516	$	565,211	$	—		$	—
iShares J.P. Morgan USD Emerging Markets Bond ETF		80,842		46,279			(20,210	)		106,911		11,766,625		244,194		(20,767	)		199,338
											$	92,319,141	$	809,405	$	(20,767	)	$	199,338

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

^(b)  Represents net shares purchased.

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

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
U.S. Treasury Long Bond		123		06/19/19	$	18,408	$	531,682
U.S. Treasury Ultra Bond		121		06/19/19		20,328		799,807
EURO STOXX 50 Index		3		06/21/19		110		2,137
STOXX 600 Banks Index		7		06/21/19		53		(484	)
U.S. Treasury 2 Year Note		439		06/28/19		93,548		326,156
U.S. Treasury 5 Year Note		500		06/28/19		57,914		563,022
								2,222,320
Short Contracts
Euro-Bobl		24		06/06/19		3,584		(31,105	)
Euro-Bund		25		06/06/19		4,665		(97,108	)
Euro-Schatz		1		06/06/19		126		(220	)
U.S. Treasury 10 Year Note		276		06/19/19		34,284		(388,218	)
U.S. Treasury 10 Year Ultra Note		335		06/19/19		44,482		(954,814	)
S&P 500E-Mini Index		7		06/21/19		993		(13,240	)
Long Gilt		3		06/26/19		505		(8,308	)
								(1,493,013	)
							$	729,307

SCHEDULES OF INVESTMENTS 37

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	786,899	EUR	700,000	Barclays Bank plc		04/12/19	$	1,009
USD	54,799,754	EUR	48,510,000	Citibank NA		04/12/19		337,609
USD	45,514	EUR	40,000	JPMorgan Chase Bank NA		04/12/19		606
USD	609,985	EUR	540,000	UBS AG		04/12/19		3,727
USD	370,382	GBP	280,000	Barclays Bank plc		04/12/19		5,510
USD	594,542	GBP	450,000	Citibank NA		04/12/19		8,140
USD	8,061,642	GBP	6,120,000	JPMorgan Chase Bank NA		04/12/19		86,575
JPY	9,680,000	USD	87,624	Morgan Stanley & Co. International plc		06/17/19		244
USD	615,584	EUR	544,680	Bank of America NA		06/17/19		590
USD	1,732,973	HKD	13,567,274	Bank of America NA		06/17/19		607
USD	91,762	HKD	718,397	Goldman Sachs International		06/17/19		32
USD	1,149,527	HKD	9,000,000	UBS AG		06/17/19		343
								444,992
EUR	40,000	USD	45,305	JPMorgan Chase Bank NA		04/12/19		(397	)
EUR	160,000	USD	181,067	Morgan Stanley & Co. International plc		04/12/19		(1,435	)
USD	587,436	CNY	3,956,262	UBS AG		06/17/19		(910	)
USD	3,417,431	JPY	376,524,048	Bank of America NA		06/17/19		(386	)
USD	293,971	IDR	4,264,050,991	Bank of America NA		06/18/19		(1,728	)
USD	192,035	TWD	5,916,596	Citibank NA		06/18/19		(262	)
								(5,118	)
	Net Unrealized Appreciation						$	439,874

Exchange-Traded Options Purchased

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Put
SPDR S&P 500 ETF Trust		966		04/05/19	USD	278.00	USD	27,288	$	47,334
U.S. Treasury 10 Year Note		470		04/26/19	USD	124.25	USD	47,000		257,031
U.S. Treasury 10 Year Note		432		05/24/19	USD	122.00	USD	43,200		47,250
									$	351,615

OTC Currency Options Purchased

Description	Counterparty		Expiration Date		Exercise Price		Notional Amount (000)		Value
Put
EUR Currency		BNP Paribas SA		05/10/19	USD	1.12	EUR	28,700	$	132,410

OTC Credit Default Swaptions Purchased

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Price

Notional Amount (000) (a)

Value

Description

Rate/Reference

Frequency

Rate/Reference

Frequency

Put

Bought Protection on5-Year Credit Default Swap

5.00

%

Quarterly

CDX.NA.HY.31.V3

Quarterly

Morgan Stanley & Co. International plc

04/17/19

USD

105.00

USD

38,260

$

43,193

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

38 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Description

Rate

Frequency

Rate

Frequency

Put

30-Year Interest Rate Swap

3.50

%

Semi-Annual

3 month LIBOR

Quarterly

JPMorgan Chase Bank NA

06/06/19

3.50

%

USD

4,410

$

117

30-Year Interest Rate Swap

3.50

%

Semi-Annual

3 month LIBOR

Quarterly

Goldman Sachs Bank USA

06/06/19

3.50

%

USD

5,070

134

10-Year Interest Rate Swap

3.24

%

Semi-Annual

3 month LIBOR

Quarterly

Goldman Sachs International

07/29/19

3.24

%

USD

16,500

4,263

10-Year Interest Rate Swap

2.90

%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

03/18/20

2.90

%

USD

42,000

263,695

$

268,209

Exchange-Traded Options Written

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Put
SPDR S&P 500 ETF Trust		966		04/05/19	USD	274.00	USD	27,288	$	(14,007	)

OTC Credit Default Swaptions Written

Description

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Credit Rating (a)

Exercise Price

Notional Amount (000) (b)

Value

Rate/Reference

Frequency

Rate/Reference

Frequency

Put

Sold Protection on5-Year Credit Default Swap

CDX.NA.HY.31.V3

Quarterly

5.00

%

Quarterly

Morgan Stanley & Co. International plc

04/17/19

NR

USD

102.00

USD

38,260

$

(9,030

)

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

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

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)

ITRAXX.FINSR.28.V1

1.00

%

Quarterly

12/20/22

NR

EUR

100

$

2,185

$

1,669

$

516

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

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

SCHEDULES OF INVESTMENTS 39

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund			Payment Frequency		Counterparty		Termination Date		Credit Rating (a)	Notional Amount (000) (b)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Casino Guichard Perrachon SA		1.00	%		Quarterly		JPMorgan Chase Bank NA		12/20/22	BB	EUR	100	$	(12,539	)	$	(3,308	)	$	(9,231	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		Bank of America NA		06/20/23	BB	EUR	34		(4,979	)		(4,496	)		(483	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		Barclays Bank plc		06/20/23	BB	EUR	76		(11,180	)		(8,541	)		(2,639	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		Barclays Bank plc		06/20/23	BB	EUR	104		(15,247	)		(11,299	)		(3,948	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		BNP Paribas SA		06/20/23	BB	EUR	20		(2,937	)		(1,730	)		(1,207	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		BNP Paribas SA		06/20/23	BB	EUR	20		(2,936	)		(1,731	)		(1,205	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		Citibank NA		06/20/23	BB	EUR	16		(2,361	)		(2,011	)		(350	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		Citibank NA		06/20/23	BB	EUR	33		(4,878	)		(4,008	)		(870	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		Goldman Sachs International		06/20/23	BB	EUR	20		(2,937	)		(1,747	)		(1,190	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		JPMorgan Chase Bank NA		06/20/23	BB	EUR	13		(1,953	)		(1,502	)		(451	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		JPMorgan Chase Bank NA		06/20/23	BB	EUR	20		(2,930	)		(2,253	)		(677	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		JPMorgan Chase Bank NA		06/20/23	BB	EUR	33		(4,884	)		(4,012	)		(872	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		JPMorgan Chase Bank NA		06/20/23	BB	EUR	30		(4,405	)		(2,570	)		(1,835	)
Garfunkelux Holdco 2 SA		5.00	%		Quarterly		Credit Suisse International		06/20/23	B-	EUR	100		(9,642	)		1,165			(10,807	)
Thomas Cook Group plc		5.00	%		Quarterly		Citibank NA		06/20/23	B	EUR	35		(8,244	)		4,051			(12,295	)
Thomas Cook Group plc		5.00	%		Quarterly		Goldman Sachs International		06/20/23	B	EUR	37		(8,684	)		4,169			(12,853	)
Thomas Cook Group plc		5.00	%		Quarterly		Goldman Sachs International		06/20/23	B	EUR	120		(28,215	)		13,447			(41,662	)
Casino Guichard Perrachon SA		1.00	%		Quarterly		Goldman Sachs International		12/20/23	BB	EUR	160		(27,268	)		(23,924	)		(3,344	)
CenturyLink, Inc		1.00	%		Quarterly		Barclays Bank plc		12/20/23	B+	USD	30		(3,076	)		(2,175	)		(901	)
Chesapeake Energy Corp		5.00	%		Quarterly		Barclays Bank plc		12/20/23	B+	USD	54		(541	)		478			(1,019	)
Chesapeake Energy Corp		5.00	%		Quarterly		Barclays Bank plc		12/20/23	B+	USD	23		(231	)		42			(273	)
Garfunkelux Holdco 2 SA		5.00	%		Quarterly		Credit Suisse International		12/20/23	B-	EUR	81		(9,394	)		1,472			(10,866	)
Garfunkelux Holdco 2 SA		5.00	%		Quarterly		Credit Suisse International		12/20/23	B-	EUR	19		(2,155	)		338			(2,493	)
Garfunkelux Holdco 2 SA		5.00	%		Quarterly		JPMorgan Chase Bank NA		12/20/23	B-	EUR	43		(4,946	)		(285	)		(4,661	)
Monitchem HoldCo 3 SA		5.00	%		Quarterly		JPMorgan Chase Bank NA		12/20/23	B-	EUR	36		1,705			818			887
Monitchem HoldCo 3 SA		5.00	%		Quarterly		JPMorgan Chase Bank NA		12/20/23	B-	EUR	64		3,044			1,460			1,584
Tesco plc		1.00	%		Quarterly		Barclays Bank plc		12/20/25	BB+	EUR	100		(5,105	)		(2,855	)		(2,250	)
Virgin Media Finance plc		5.00	%		Quarterly		Credit Suisse International		12/20/25	B	EUR	110		20,407			18,333			2,074
Tesco plc		1.00	%		Quarterly		Morgan Stanley & Co. International plc		12/20/28	BB+	EUR	370		(38,530	)		(36,537	)		(1,993	)
													$	(195,041	)	$	(69,211	)	$	(125,830	)

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

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

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

Reference Index		Reference Rate
3 month LIBOR	London Interbank Offered Rate		2.60	%

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

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation			Value
Centrally Cleared Swaps(a)	$	1,669	$	—		$	516	$	—		$	—
OTC Swaps		45,773		(114,984	)		4,545		(130,375	)		—
Options Written		N/A		N/A			152,414		—			(23,037	)

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

40 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts			Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation(a)	$	—	$	—		$	2,137		$	—		$	2,220,667		$	—	$	2,222,804
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—			—			444,992			—			—		444,992
Options purchased
Investments at value — unaffiliated(b)		—		43,193			47,334			132,410			572,490			—		795,427
Swaps — centrally cleared
Net unrealized appreciation(a)		—		516			—			—			—			—		516
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		50,318			—			—			—			—		50,318
	$	—	$	94,027		$	49,471		$	577,402		$	2,793,157		$	—	$	3,514,057
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	—	$	—		$	13,724		$	—		$	1,479,773		$	—	$	1,493,497
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—			—			5,118			—			—		5,118
Options written
Options written, at value		—		9,030			14,007			—			—			—		23,037
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		245,359			—			—			—			—		245,359
	$	—	$	254,389		$	27,731		$	5,118		$	1,479,773		$	—	$	1,767,011
(a) Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. (b) Includes options purchased at value as reported in the Schedule of Investments. For the six month ended March 31, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:
	Commodity Contracts		Credit Contracts			Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	65		$	—		$	1,823,347		$	—	$	1,823,412
Forward foreign currency exchange contracts		—		—			—			3,286,174			—			—		3,286,174
Options purchased(a)		—		—			(2,545,098	)		—			(474,535	)		—		(3,019,633	)
Options written		—		—			2,077,476			—			—			—		2,077,476
Swaps		—		(1,668,153	)		—			—			(56,029	)		—		(1,724,182	)
	$	—	$	(1,668,153	)	$	(467,557	)	$	3,286,174		$	1,292,783		$	—	$	2,443,247
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—		$	(16,352	)	$	—		$	708,064		$	—	$	691,712
Forward foreign currency exchange contracts		—		—			—			(222,833	)		—			—		(222,833	)
Options purchased(b)		—		(174,277	)		148,201			(47,711	)		(354,499	)		—		(428,286	)
Options written		—		58,461			(32,738	)		—			—			—		25,723
Swaps		—		(169,307	)		—			—			—			—		(169,307	)
	$	—	$	(285,123	)	$	99,111		$	(270,544	)	$	353,565		$	—	$	(102,991	)

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

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

SCHEDULES OF INVESTMENTS 41

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	213,050,010
Average notional value of contracts — short		70,427,313
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		75,767,755
Average amounts sold — in USD		758,136
Options:
Average value of option contracts purchased		242,013
Average value of option contracts written		7,004
Average notional value of swaption contracts purchased		57,860,000
Average notional value of swaption contracts written		38,260,000
Credit default swaps:
Average notional value—sell protection		15,784,446
Total return swaps:
Average notional value		336,500

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	176,330		$	315,321
Forward foreign currency exchange contracts		444,992			5,118
Options(a)		795,427			23,037
Swaps—Centrally cleared		210			—
Swaps—OTC(b)		50,318			245,359
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	1,467,277		$	588,835
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(528,155	)		(329,328	)
Total derivative assets and liabilities subject to an MNA	$	939,122		$	259,507

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

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

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received (b)			Net Amount of Derivative Assets (c)
Bank of America NA	$	1,197	$	(1,197	)	$	—	$	—		$	—
Barclays Bank plc		7,039		(7,039	)		—		—			—
BNP Paribas SA		132,410		(5,873	)		—		—			126,537
Citibank NA		613,495		(19,796	)		—		(320,000	)		273,699
Credit Suisse International		23,382		(23,382	)		—		—			—
Goldman Sachs Bank USA		134		—			—		—			134
Goldman Sachs International		21,911		(21,911	)		—		—			—
JPMorgan Chase Bank NA		92,047		(32,054	)		—		—			59,993
Morgan Stanley & Co. International plc		43,437		(43,437	)		—		—			—
UBS AG		4,070		(910	)		—		—			3,160
	$	939,122	$	(155,599	)	$	—	$	(320,000	)	$	463,523

42 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities (d)
Bank of America NA	$	7,093	$	(1,197	)	$	—	$	—	$	5,896
Barclays Bank plc		35,900		(7,039	)		—		—		28,861
BNP Paribas SA		5,873		(5,873	)		—		—		—
Citibank NA		19,796		(19,796	)		—		—		—
Credit Suisse International		24,166		(23,382	)		—		—		784
Goldman Sachs International		84,720		(21,911	)		—		—		62,809
JPMorgan Chase Bank NA		32,054		(32,054	)		—		—		—
Morgan Stanley & Co. International plc		48,995		(43,437	)		—		—		5,558
UBS AG		910		(910	)		—		—		—
	$	259,507	$	(155,599	)	$	—	$	—	$	103,908

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

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

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

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

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—	$	72,969,980	$	6,979,699	$	79,949,679
Common Stocks:
Capital Markets		—		—		16,560		16,560
Chemicals		386,729		—		—		386,729
Commercial Services & Supplies		—		—		6,675		6,675
Containers & Packaging		184,119		—		—		184,119
Electric Utilities		—		—		54,824		54,824
Equity Real Estate Investment Trusts (REITs)		88,711		—		—		88,711
Health Care Providers & Services		—		155		—		155
Hotels, Restaurants & Leisure		94,552		—		—		94,552
Machinery		—		16,131		—		16,131
Marine		—		—		—		—
Media		180,132		—		—		180,132
Metals & Mining		152,833		—		—		152,833
Software		185		—		—		185
Textiles, Apparel & Luxury Goods		1,036		—		—		1,036
Corporate Bonds(a)		—		397,623,090		—		397,623,090
Floating Rate Loan Interests:
Aerospace & Defense		—		3,143,035		273,355		3,416,390
Air Freight & Logistics		—		310,878		—		310,878
Airlines		—		576,650		—		576,650
Auto Components		—		1,008,819		—		1,008,819
Building Products		—		762,748		406,018		1,168,766
Capital Markets		—		2,202,483		—		2,202,483
Chemicals		—		5,801,705		74,250		5,875,955
Commercial Services & Supplies		—		7,522,036		470,970		7,993,006
Communications Equipment		—		648,183		—		648,183
Construction & Engineering		—		403,096		—		403,096
Construction Materials		—		1,919,617		—		1,919,617
Containers & Packaging		—		4,171,682		—		4,171,682
Distributors		—		960,946		—		960,946
Diversified Consumer Services		—		4,762,674		241,605		5,004,279
Diversified Financial Services		—		3,396,302		132,614		3,528,916
Diversified Telecommunication Services		—		3,994,463		—		3,994,463

SCHEDULES OF INVESTMENTS 43

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund

	Level 1		Level 2		Level 3			Total
Electric Utilities	$	—	$	1,669,277	$	—		$	1,669,277
Electrical Equipment		—		718,237		406,359			1,124,596
Electronic Equipment, Instruments & Components		—		139,845		—			139,845
Energy Equipment & Services		—		642,946		—			642,946
Entertainment		—		1,810,388		—			1,810,388
Equity Real Estate Investment Trusts (REITs)		—		1,777,219		—			1,777,219
Food & Staples Retailing		—		1,517,289		—			1,517,289
Food Products		—		3,686,590		97,513			3,784,103
Gas Utilities		—		324,307		—			324,307
Health Care Equipment & Supplies		—		809,619		326,704			1,136,323
Health Care Providers & Services		—		6,704,784		1,724,311			8,429,095
Health Care Technology		—		2,641,545		—			2,641,545
Hotels, Restaurants & Leisure		—		13,057,545		—			13,057,545
Household Durables		—		316,486		—			316,486
Household Products		—		726,381		—			726,381
Independent Power and Renewable Electricity Producers		—		1,773,049		106,664			1,879,713
Industrial Conglomerates		—		3,418,138		—			3,418,138
Insurance		—		6,447,512		—			6,447,512
IT Services		—		18,160,991		—			18,160,991
Life Sciences Tools & Services		—		59,100		158,264			217,364
Machinery		—		2,811,075		239,552			3,050,627
Media		—		7,483,825		778,502			8,262,327
Metals & Mining		—		450,532		59,062			509,594
Multiline Retail		—		1,135,793		—			1,135,793
Multi-Utilities		—		290,053		—			290,053
Oil, Gas & Consumable Fuels		—		2,079,017		—			2,079,017
Pharmaceuticals		—		6,140,942		—			6,140,942
Professional Services		—		1,058,246		—			1,058,246
Real Estate Management & Development		—		1,210,302		—			1,210,302
Semiconductors & Semiconductor Equipment		—		1,094,529		46,320			1,140,849
Software		—		10,935,111		—			10,935,111
Specialty Retail		—		387,011		386,530			773,541
Technology Hardware, Storage & Peripherals		—		1,041,328		—			1,041,328
Trading Companies & Distributors		—		1,390,998		—			1,390,998
Wireless Telecommunication Services		—		2,127,179		121,680			2,248,859
Foreign Agency Obligations		—		9,189,838		—			9,189,838
Foreign Government Obligations		—		8,293,781		—			8,293,781
Investment Companies		34,768,053		—		—			34,768,053
Non-Agency Mortgage-Backed Securities		—		15,129,562		1,781,507			16,911,069
Other Interests		—		—		—			—
Preferred Securities:
Banks		—		3,294,746		—			3,294,746
Capital Markets		—		2,563,422		—			2,563,422
Oil, Gas & Consumable Fuels		—		1,005,000		—			1,005,000
U.S. Government Sponsored Agency Securities		—		1,453,063		—			1,453,063
U.S. Treasury Obligations		—		23,131,211		—			23,131,211
Short-Term Securities		81,567,917		—		—			81,567,917
Options Purchased:
Credit contracts		—		43,193		—			43,193
Equity contracts		47,334		—		—			47,334
Foreign currency exchange contracts		—		132,410		—			132,410
Interest rate contracts		304,281		268,209		—			572,490
Liabilities:
Unfunded Floating Rate Loan Interests(b)		—		—		(216	)		(216	)
Subtotal	$	117,775,882	$	682,736,297	$	14,889,322		$	815,401,501
Investments valued at NAV(c)									27,871
Total Investments								$	815,429,372

44 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Credit Strategies Income Fund

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments(d)
Assets:
Credit contracts	$	—		$	5,061		$	—	$	5,061
Equity contracts		2,137			—			—		2,137
Foreign currency exchange contracts		—			444,992			—		444,992
Interest rate contracts		2,220,667			—			—		2,220,667
Liabilities:
Credit contracts		—			(139,405	)		—		(139,405	)
Equity contracts		(27,731	)		—			—		(27,731	)
Foreign currency exchange contracts		—			(5,118	)		—		(5,118	)
Interest rate contracts		(1,479,773	)		—			—		(1,479,773	)
	$	715,300		$	305,530		$	—	$	1,020,830

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

^(b)  Unfunded floating rate loan interests are valued at the unrealized appreciation (depreciation) on the commitment.

^(c)  Certain of the Fund’s investments were fair valued using NAV per share or its equivalent as no quoted market value is available and have been excluded from the fair value hierarchy.

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

During the six months ended March 31, 2019, there were no transfers between Level 1 and Level 2.

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

	Asset- Backed Securities			Common Stocks			Floating Rate Loan Interest			Non-Agency Mortgage- Backed Securities			Unfunded Floating Rate Loan Interests			Total
Investments:
Assets:
Opening Balance, as of September 30, 2018	$	3,745,375		$	108,783		$	5,231,319		$	—		$	(110	)	$	9,085,367
Transfers into Level 3		—			15,840			1,581,582			—			—			1,597,422
Transfers out of Level 3		(3,745,375	)		—			(1,920,139	)		—			—			(5,665,514	)
Accrued discounts/premiums		—			—			3,751			—			—			3,751
Net realized gain (loss)		3,679			(15,519	)		(55,903	)		2,933			—			(64,810	)
Net change in unrealized appreciation (depreciation)(a)(b)		33,521			17,086			(56,514	)		4,501			(106	)		(1,512	)
Purchases		7,713,491			7,248			3,233,480			1,999,662			—			12,953,881
Sales		(770,992	)		(55,379	)		(1,967,303	)		(225,589	)		—			(3,019,263	)
Closing Balance, as of March 31, 2019	$	6,979,699		$	78,059		$	6,050,273		$	1,781,507		$	(216	)	$	14,889,322
Net change in unrealized appreciation (depreciation) on investments still held at March 31, 2019(b)	$	33,521		$	17,086		$	(72,319	)	$	4,501		$	(106	)	$	(17,317	)

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

^(b)  Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at March 31, 2019 is generally due to investments no longer held or categorized as Level 3 at period end.

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 45

Schedule of Investments  (unaudited) March 31, 2019 BlackRock GNMA Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Non-Agency Mortgage-Backed Securities — 0.3%
Collateralized Mortgage Obligations — 0.3%
Seasoned Credit Risk Transfer Trust, Series2018-4, Class MA, 3.50%, 03/25/58	USD		1,253	$	1,273,026
TotalNon-Agency Mortgage-Backed Securities — 0.3% (Cost: $1,223,999)					1,273,026
U.S. Government Sponsored Agency Securities — 176.9%
Collateralized Mortgage Obligations — 17.3%
Federal Home Loan Mortgage Corp.:
Series 3745, Class ZA, 4.00%, 10/15/40			346		368,125
Series 3780, Class ZA, 4.00%, 12/15/40			652		690,690
Series 3960, Class PL, 4.00%, 11/15/41			900		956,928
Series 4325, Class ZX, 4.50%, 04/15/44			2,370		2,632,798
Series 4384, Class LB, 3.50%, 08/15/43			1,500		1,540,213
Federal National Mortgage Association:
Series1996-48, Class Z, 7.00%, 11/25/26			223		239,385
Series2010-134, Class KZ, 4.50%, 12/25/40			474		502,320
Series2010-141, Class LZ, 4.50%, 12/25/40			348		369,332
Series2011-131, Class LZ, 4.50%, 12/25/41			314		333,394
Series2011-8, Class ZA, 4.00%, 02/25/41			2,987		3,097,617
Series2017-76, Class PB, 3.00%, 10/25/57			1,125		1,052,194
Federal National Mortgage Association Variable Rate Notes(a):
Series2018-32, Class PS, (LIBOR USD 1 Month + 7.23%), 4.33%, 05/25/48			1,911		2,012,478
Series2019-1, Class AF, (LIBOR USD 1 Month + 0.50%), 2.99%, 02/25/49			1,057		1,055,203
Government National Mortgage Association:
Series2009-122, Class PY, 6.00%, 12/20/39			794		872,644
Series2017-186, Class DT, 3.00%, 11/20/47			10,646		10,636,919
Series2018-13, Class LQ, 3.00%, 01/20/48			2,200		2,077,342
Series2018-51, Class QA, 3.50%, 04/20/48			9,685		9,946,319
Series2019-5, Class P, 3.50%, 07/20/48			797		813,581
Government National Mortgage Association Variable Rate Notes:
Series2009-31, Class PT, 3.70%, 05/20/39(b)			310		316,159
Series2014-107, Class WX, 6.81%, 07/20/39(b)			1,515		1,702,020
Series2015-103, Class B, 6.90%, 01/20/40(b)			6,907		7,728,234
Series2015-187, Class C, 5.27%, 03/20/41(b)			11,389		12,719,209
Series2015-55, Class A, 5.39%, 03/16/36(b)			11,222		12,258,894
Series2018-164, Class AF, (LIBOR USD 1 Month + 0.40%), 2.89%, 12/20/48(a)			4,102		4,084,029
					78,006,027
Commercial Mortgage-Backed Securities — 2.8%
Federal Home Loan Mortgage Corp.:
Series K058, Class A2, 2.65%, 08/25/26			610		603,395
Series K079, Class A2, 3.93%, 06/25/28			1,780		1,918,431
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Series K087, Class A2, 3.77%, 12/25/28			1,334		1,419,944
Federal Home Loan Mortgage Corp. Variable Rate Notes(b):
Series 2019-SB60, Class A10F, 3.31%, 01/25/29			1,706		1,732,348
Series K082, Class A2, 3.92%, 09/25/28			330		355,827
Series K086, Class A2, 3.86%, 11/25/28			2,430		2,606,001
Federal National Mortgage Association ACES Variable Rate Notes(b):
Series2017-M15, Class A2, 2.96%, 09/25/27			2,150		2,156,876
Series2018-M7, Class A2, 3.05%, 03/25/28			475		477,264
Series2019-M1, Class A2, 3.56%, 09/25/28			1,474		1,540,710
					12,810,796

Security		Par (000)		Value
Interest Only Collateralized Mortgage Obligations — 1.3%
Federal Home Loan Mortgage Corp.:
Series 4062, Class GI, 4.00%, 02/15/41	USD		136	$	13,327
Series 4791, Class LI, 3.00%, 05/15/48			570		93,068
Federal Home Loan Mortgage Corp. Variable Rate Notes, Series 4611, Class BS, (LIBOR USD 1 Month + 6.10%), 3.62%, 06/15/41(a)			5,366		784,781
Federal National Mortgage Association:
Series2014-68, Class YI, 4.50%, 11/25/44			205		40,131
Series2018-21, 3.00%, 04/25/48			4,688		758,891
Series2018-63, 3.00%, 09/25/48			868		150,101
Federal National Mortgage Association Variable Rate Notes(a):
Series2011-100, Class S, (LIBOR USD 1 Month + 6.45%), 3.97%, 10/25/41			1,270		184,280
Series2015-66, Class AS, (LIBOR USD 1 Month + 6.25%), 3.76%, 09/25/45			14,557		2,098,067
Series2016-60, Class SD, (LIBOR USD 1 Month + 6.10%), 3.61%, 09/25/46			1,198		180,495
Series2016-78, Class CS, (LIBOR USD 1 Month + 6.10%), 3.61%, 05/25/39			1,506		223,231
Series2016-81, Class CS, (LIBOR USD 1 Month + 6.10%), 3.61%, 11/25/46			2,165		303,436
Series2017-14, Class DS, (LIBOR USD 1 Month + 6.05%), 3.57%, 03/25/47			2,374		415,413
Series2017-70, Class SA, (LIBOR USD 1 Month + 6.15%), 3.66%, 09/25/47			1,600		288,182
Government National Mortgage Association:
Series2014-113, Class NI, 5.00%, 07/20/44			254		51,486
Series2017-139, Class IB, 4.50%, 09/20/47			838		144,510
Series2017-144, Class DI, 4.50%, 09/20/47			646		106,802
Series2018-89, Class CI, 5.00%, 12/20/47			791		159,790
					5,995,991
Interest Only Commercial Mortgage-Backed Securities — 2.6%
Federal National Mortgage Association ACES Variable Rate Notes, Series2015-M1, Class X2, 0.54%, 09/25/24(b)			42,352		1,024,735
Government National Mortgage Association Variable Rate Notes:
Series2016-110, 1.03%, 05/16/58(b)			5,024		389,869
Series2016-113, (LIBOR USD 1 Month + 0.00%), 1.18%, 02/16/58(a)			12,070		1,101,418
Series2016-119, (LIBOR USD 1 Month + 0.00%), 1.12%, 04/16/58(a)			29,758		2,473,647
Series2016-22, 0.77%, 11/16/55(b)			21,779		1,160,840
Series2016-45, 1.01%, 02/16/58(b)			26,779		2,043,487
Series2016-92, 1.01%, 04/16/58(b)			5,443		394,882
Series2017-53, 0.69%, 11/16/56(b)			20,581		1,176,237
Series2017-54, 0.65%, 12/16/58(b)			4,993		296,588
Series2017-61, 0.77%, 05/16/59(b)			4,806		336,380
Series2017-64, 0.72%, 11/16/57(b)			7,192		465,992
Series2017-72, 0.68%, 04/16/57(b)			11,991		731,905
					11,595,980
Mortgage-Backed Securities — 152.9%
Federal Home Loan Mortgage Corp.:
3.00%, 06/01/35 - 07/01/35			1,721		1,741,175
3.00%, 04/15/49(c)			293		291,701
3.50%, 07/01/26 - 09/01/26			59		60,225
3.50%, 04/15/49(c)			1,694		1,718,257
4.00%, 04/01/19 - 05/01/26			267		275,525
5.00%, 05/01/35 - 12/01/38			112		120,639
5.65%, 05/01/37 - 12/01/37			1,030		1,104,374
5.75%, 08/01/37 - 04/01/38			1,633		1,751,125

46 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock GNMA Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)			Value
Mortgage-Backed Securities (continued)
Federal Home Loan Mortgage Corp. (continued)
7.50%, 03/01/27	USD		—	(d)		$    111
Federal National Mortgage Association:
2.50%, 04/25/34(c)			154			153,081
3.00%, 07/01/35 - 06/01/43			44,525			44,711,113
3.00%, 11/01/46(e)			36,314			36,214,445
3.00%, 04/25/49(c)			4,936			4,914,757
3.13%, 09/01/27			948			972,143
3.16%, 03/01/27			1,459			1,492,697
3.40%, 04/01/41			167			166,928
3.50%, 09/01/24 - 11/01/46			17,316			17,717,230
3.50%, 04/25/49(c)			819			830,101
4.00%, 07/01/43			4,064			4,244,889
4.45%, 03/01/36 - 06/01/36			814			832,979
4.94%, 01/01/35 - 05/01/35			189			192,045
5.00%, 01/01/21 - 04/01/36			2,018			2,164,147
5.20%, 08/01/34 - 09/01/34			288			293,846
5.25%, 07/01/37 - 09/01/37			1,665			1,754,116
5.50%, 12/01/32 - 04/01/35			147			160,729
5.54%, 01/01/35			77			78,713
5.75%, 04/01/37			677			725,720
5.80%, 07/01/34			49			50,031
5.94%, 09/01/34			79			81,163
6.50%, 09/01/28 - 08/01/35			2,662			2,933,994
Government National Mortgage Association:
2.50%, 04/15/49(c)			9,380			9,184,967
3.00%, 05/15/42 - 09/20/46			19,483			19,608,906
3.00%, 04/15/49(c)			56,475			56,717,666
3.50%, 04/15/41 - 02/15/45			88,728			90,993,495
3.50%, 07/20/43(f)			47,941			49,141,689
3.50%, 04/15/49(c)			28,805			29,427,796
4.00%, 10/20/41 - 12/20/47			50,419			52,428,758
4.00%, 04/15/49 - 05/15/49(c)			81,424			84,006,428
4.50%, 12/15/34 - 09/20/48			26,833			28,135,213
4.50%, 10/20/48(f)			24,955			25,937,125
4.50%, 04/15/49(c)			21,102			21,917,288
5.00%, 09/15/28 - 10/15/47			24,781			26,409,902
5.00%, 04/15/49 - 05/15/49(c)			31,100			32,478,900
5.30%, 12/15/36 - 04/15/37			415			439,661
5.50%, 03/15/32 - 12/15/34			9,397			10,299,335
5.64%, 02/15/37 - 06/15/37			2,437			2,635,549
5.65%, 05/20/37 - 02/20/38			1,490			1,578,449
5.75%, 08/20/37 - 04/20/38			750			790,179
5.80%, 11/15/36 - 03/15/37			2,162			2,324,418
6.00%, 03/20/28 - 01/15/39			11,886			13,061,155
6.50%, 09/20/27 - 10/20/40			4,856			5,414,222
7.00%, 03/20/24 - 05/20/27			22			23,477
7.50%, 04/20/23 - 10/20/25			3			3,100
8.00%, 05/15/21 - 05/15/30			62			64,484
8.50%, 10/15/19 - 02/15/25			22			22,586
9.00%, 10/15/19 - 10/15/21			7			7,531
9.50%, 09/15/20 - 09/15/22			6			5,821
						690,806,099
Total U.S. Government Sponsored Agency Securities — 176.9% (Cost: $800,822,857)						799,214,893
U.S. Treasury Obligations — 1.0%
U.S. Treasury Inflation Linked Notes, 0.63%, 04/15/23			4,459			4,489,662
Total U.S. Treasury Obligations — 1.0% (Cost: $4,407,257)						4,489,662
Total Long-Term Investments — 178.2% (Cost: $806,454,113)						804,977,581

Security	Shares		Value
Short-Term Securities — 1.7%
Money Market Funds — 0.7%
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.37%(g)(i)		3,339,093	$	3,339,093
Total Money Market Funds — 0.7% (Cost: $3,339,093)				3,339,093
	Par (000)
U.S. Treasury Obligations — 1.0%
U.S. Treasury Bills, 2.39%, 04/16/19(h)		4,410		4,405,649
Total U.S. Treasury Obligations — 1.0% (Cost: $4,405,606)				4,405,649
Total Short-Term Securities — 1.7% (Cost: $7,744,699)				7,744,742
Total Options Purchased — 0.0% (Cost: $172,999)				180,993
Total Investments Before Options Written and TBA Sale Commitments — 179.9% (Cost: $814,371,811)				812,903,316
Total Options Written — (0.0)% (Premium Received — $138,944)				(260,896	)
TBA Sale Commitments — (34.8)%(c)
Mortgage-Backed Securities — (34.8)%
Federal Home Loan Mortgage Corp.,
3.50%, 04/15/49		1,694		(1,718,256	)
Federal National Mortgage Association:
3.00%, 04/25/49		79,940		(79,595,632	)
3.50%, 04/25/49		10,276		(10,415,282	)
4.00%, 04/25/49		4,015		(4,129,837	)
Government National Mortgage Association:
3.00%, 04/15/49		26,006		(26,117,745	)
3.50%, 04/15/49		4,564		(4,662,786	)
4.00%, 04/15/49		18,162		(18,751,910	)
5.00%, 04/15/49		11,200		(11,700,678	)
Total TBA Sale Commitments — (34.8)% (Proceeds: $155,376,605)				(157,092,126	)
Total Investments Net of Options Written and TBA Sale Commitments — 145.1% (Cost: $658,856,262)				655,550,294
Liabilities in Excess of Other Assets — (45.1)%				(203,791,401	)
Net Assets — 100.0%			$	451,758,893

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

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

^(c)  Represents or includes a TBA transaction.

^(d)  Amount is less than $500.

^(e)  All or a portion of the security has been pledged as collateral in connection with outstanding TBA commitments.

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

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

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

SCHEDULES OF INVESTMENTS 47

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock GNMA Portfolio

⁽ⁱ⁾  During the six months ended March 31, 2019, investments in issuers considered to be an affiliate 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 09/30/18		Net Activity		Shares Held at 03/31/19		Value at 03/31/19		Income		Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		3,163,813		175,280		3,339,093	$	3,339,093	$	33,097	$	—	$	—

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

Reverse Repurchase Agreements

Counterparty	Interest Rate			Trade Date		Maturity Date		Face Value		Face Value Including Accrued Interest		Type of Non-Cash Underlying Collateral	Remaining Contractual Maturity of the Agreements
Citigroup Global Markets, Inc.		2.68	%		03/11/19		04/10/19	$	17,179,000	$	17,203,299	U.S. Government Sponsored Agency Securities	Up to 30 days
Royal Bank of Canada		2.71	%		03/11/19		04/10/19		34,159,000		34,207,857	U.S. Government Sponsored Agency Securities	Up to 30 days
Royal Bank of Canada		2.71	%		03/11/19		04/10/19		47,455,000		47,522,873	U.S. Government Sponsored Agency Securities	Up to 30 days
								$	98,793,000	$	98,934,029

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
U.S. Treasury 2 Year Note		247		06/28/19	$	52,634	$	188,894
90-day Eurodollar		79		12/16/19		19,270		42,353
								231,247
Short Contracts
90-day Eurodollar		14		06/17/19		3,411		(309	)
U.S. Treasury 10 Year Note		495		06/19/19		61,488		(465,222	)
U.S. Treasury 10 Year Ultra Note		13		06/19/19		1,726		(37,471	)
U.S. Treasury Long Bond		74		06/19/19		11,075		(318,351	)
U.S. Treasury Ultra Bond		11		06/19/19		1,848		(74,556	)
U.S. Treasury 5 Year Note		76		06/28/19		8,803		(78,880	)
90-day Eurodollar		3		09/16/19		732		(554	)
90-day Eurodollar		14		03/16/20		3,419		(20,610	)
90-day Eurodollar		14		06/15/20		3,422		(21,893	)
90-day Eurodollar		14		09/14/20		3,424		(27,431	)
90-day Eurodollar		107		12/14/20		26,176		(90,760	)
90-day Eurodollar		14		03/15/21		3,426		143
								(1,135,894	)
							$	(904,647	)

48 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock GNMA Portfolio

OTC Interest Rate Swaptions Purchased

Description

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Rate

Frequency

Rate

Frequency

Call

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

2.50

%

Semi-Annual

Citibank NA

06/12/19

2.50

%

USD

9,800

$

132,135

Put

5-Year Interest Rate Swap

2.72%

Semi-Annual

3 month LIBOR

Quarterly

Barclays Bank plc

02/03/20

2.72

%

USD

5,500

16,220

10-Year Interest Rate Swap

3.20%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

6,700

16,319

10-Year Interest Rate Swap

3.20%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

6,700

16,319

48,858

$

180,993

Exchange-Traded Options Written

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
90-day Eurodollar March 2020 Futures		186		03/16/20	USD	98.00	USD	46,500	$	(51,150	)

OTC Interest Rate Swaptions Written

Description

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Rate

Frequency

Rate

Frequency

Call

2-Year Interest Rate Swap

3 month LIBOR

Quarterly

2.85%

Semi-Annual

Barclays Bank plc

05/20/19

2.85

%

USD

21,500

$

(209,746

)

Put

2-Year Interest Rate Swap

3.33%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

04/30/19

3.33

%

USD

21,500

—

$

(209,746

)

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund		Termination Date		Notional Amount (000)			Value	Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
3.07%	Semi-Annual	3 month LIBOR	Quarterly		10/11/20		USD	16,350	$ (285,202)	$	—	$	(285,202	)
3.05%	Semi-Annual	3 month LIBOR	Quarterly		10/15/20		USD	16,350	(279,660)		192		(279,852	)
3.11%	Semi-Annual	3 month LIBOR	Quarterly		10/23/20		USD	16,350	(300,684)		—		(300,684	)
3.06%	Semi-Annual	3 month LIBOR	Quarterly		10/25/20		USD	16,350	(284,032)		—		(284,032	)
3 month LIBOR	Quarterly	2.63%	Semi-Annual		01/08/21		USD	24,400	77,307		—		77,307
2.90%	Semi-Annual	3 month LIBOR	Quarterly		03/04/21		USD	21,100	(202,351)		—		(202,351	)
2.70%	Semi-Annual	3 month LIBOR	Quarterly		03/07/21		USD	23,200	(133,888)		—		(133,888	)
2.66%	Semi-Annual	3 month LIBOR	Quarterly		02/06/23		USD	12,000	(159,232)		—		(159,232	)
2.87%	Semi-Annual	3 month LIBOR	Quarterly		03/23/23		USD	9,600	(209,390)		—		(209,390	)
3 month LIBOR	Quarterly	2.61%	Semi-Annual		02/07/24		USD	5,400	77,032		—		77,032
2.71%	Semi-Annual	3 month LIBOR	Quarterly		03/18/24		USD	13,300	(257,554)		—		(257,554	)
3 month LIBOR	Quarterly	3.13%	Semi-Annual		05/22/28		USD	1,750	118,881		—		118,881
2.85%	Semi-Annual	3 month LIBOR	Quarterly		12/21/28		USD	2,000	(87,901)		—		(87,901	)
2.64%	Semi-Annual	3 month LIBOR	Quarterly		03/14/29		USD	2,700	(49,720)		—		(49,720	)
									$(1,976,394)	$	192	$	(1,976,586	)

SCHEDULES OF INVESTMENTS 49

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock GNMA Portfolio

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

Reference Index		Reference Rate
3 month LIBOR	London Interbank Offered Rate		2.60	%

Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps and Options Written

	Swap Premiums Paid		Swap Premiums Received		Unrealized Appreciation		Unrealized Depreciation			Value
Centrally Cleared Swaps(a)	$	192	$	—	$	273,220	$	(2,249,806	)	$	—
Options Written		N/A		N/A		46,624		(168,576	)		(260,896	)

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

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts	$	—	$	—	$	—	$	—	$	231,390	$	—	$	231,390
Net unrealized appreciation(a)
Options purchased
Investments at value — unaffiliated(b)		—		—		—		—		180,993		—		180,993
Swaps — centrally cleared
Net unrealized appreciation(a)		—		—		—		—		273,220		—		273,220
	$	—	$	—	$	—	$	—	$	685,603	$	—	$	685,603
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	—	$	—	$	—	$	—	$	1,136,037	$	—	$	1,136,037
Options written
Options written, at value		—		—		—		—		260,896		—		260,896
Swaps — centrally cleared
Net unrealized depreciation(a)		—		—		—		—		2,249,806		—		2,249,806
	$	—	$	—	$	—	$	—	$	3,646,739	$	—	$	3,646,739

^(a)  Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

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

50 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock GNMA Portfolio

For the six month ended March 31, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(3,001,059	)	$	—	$	(3,001,059	)
Options purchased(a)		—		—		—		—		1,179			—		1,179
Options written		—		—		—		—		246,350			—		246,350
Swaps		—		—		—		—		416,843			—		416,843
	$	—	$	—	$	—	$	—	$	2,336,687	)	$	—	$	(2,336,687	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—	$	—	$	—	$	(1,610,596	)	$	—	$	(1,610,596	)
Options purchased(b)		—		—		—		—		19,418			—		19,418
Options written		—		—		—		—		(232,984	)		—		(232,984	)
Swaps		—		—		—		—		(2,263,190	)		—		(2,263,190	)
	$	—	$	—	$	—	$	—	$	(4,087,352	)	$	—	$	(4,087,352	)

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

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

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	43,383,053
Average notional value of contracts — short		135,896,759
Options:
Average value of option contracts purchased		—	(a)
Average value of option contracts written		25,575
Average notional value of swaption contracts purchased		14,350,000
Average notional value of swaption contracts written		84,400,000
Interest rate swaps:
Average notional value — pays fixed rate		119,150,000
Average notional value — receives fixed rate		16,650,000

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

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	235,833		$	63,850
Options(a)		180,993			260,896
Swaps — Centrally cleared		129,536			—
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	546,362		$	324,746
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(365,369	)		(115,000	)
Total derivative assets and liabilities subject to an MNA	$	180,993		$	209,746

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

SCHEDULES OF INVESTMENTS 51

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock GNMA Portfolio

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets (b)
Barclays Bank plc	$	16,220	$	(16,220	)	$	—	$	—	$	—
Citibank NA		164,773		—			—		—		164,773
	$	180,993	$	(16,220	)	$	—	$	—	$	164,773
Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities (c)
Barclays Bank plc	$	209,746	$	(16,220	)	$	—	$	—	$	193,526

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

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

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

Fair Value Hierarchy as of Period End

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

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

	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Non-Agency Mortgage-Backed Securities	$	—		$	1,273,026		$	—	$	1,273,026
U.S. Government Sponsored Agency Securities		—			799,214,893			—		799,214,893
U.S. Treasury Obligations		—			4,489,662			—		4,489,662
Short-Term Securities:
Money Market Funds		3,339,093			—			—		3,339,093
U.S. Treasury Obligations		—			4,405,649			—		4,405,649
Options Purchased:
Interest rate contracts		—			180,993			—		180,993
Liabilities:
TBA Sale Commitments		—			(157,092,126	)		—		(157,092,126	)
	$	3,339,093		$	652,472,097		$	—	$	655,811,190
Derivative Financial Instruments(a)
Assets:
Interest rate contracts	$	231,390		$	273,220		$	—	$	504,610
Liabilities:
Interest rate contracts		(1,187,187	)		(2,459,552	)		—		(3,646,739	)
	$	(955,797	)	$	(2,186,332	)	$	—	$	(3,142,129	)

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

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount or face value, including accrued interest, for financial statement purposes. As of period end, Reverse Repurchase Agreements of $98,934,029 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended March 31, 2019, there were no transfers between levels.

See notes to financial statements.

52 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited)  March 31, 2019 BlackRock U.S. Government Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 1.8%(a)
Arbor Realty Commercial Real Estate Notes Ltd., Series 2016-FL1A, Class A, (LIBOR USD 1 Month + 1.70%), 4.18%, 09/15/26(b)	USD		1,840	$	1,854,266
Dryden XXVIII Senior Loan Fund, Series2013-28A, Class A1LR, (LIBOR USD 3 Month + 1.20%), 3.88%, 08/15/30(b)			5,800		5,777,133
Progress Residential Trust:
Series 2015-SFR2, Class A, 2.74%, 06/12/32			2,161		2,146,705
Series 2017-SFR1, Class A, 2.77%, 08/17/34			977		968,358
Total Asset-Backed Securities — 1.8% (Cost: $10,777,041)					10,746,462
Foreign Agency Obligations — 0.1%
Mexico — 0.1%
Petroleos Mexicanos:
6.38%, 02/04/21			35		36,120
6.88%, 08/04/26			133		138,626
6.50%, 03/13/27			133		133,731
5.35%, 02/12/28			119		110,432
5.63%, 01/23/46			176		145,024
6.75%, 09/21/47			22		20,162
					584,095
Total Foreign Agency Obligations — 0.1% (Cost: $570,775)					584,095
Foreign Government Obligations — 1.4%
Colombia — 0.2%
Republic of Colombia, 7.00%, 06/30/32	COP		3,637,600		1,154,642
Indonesia — 0.4%
Republic of Indonesia:
8.25%, 05/15/29	IDR		26,564,000		1,945,580
8.38%, 03/15/34			2,433,000		175,171
8.38%, 04/15/39			2,167,000		154,840
					2,275,591
Mexico — 0.2%
United Mexican States:
7.50%, 06/03/27	MXN		12		60,045
8.50%, 05/31/29			111		583,917
7.75%, 11/23/34			28		139,878
10.00%, 11/20/36			20		118,513
5.75%, 10/12/2110	USD		114		116,850
					1,019,203
Oman — 0.0%
Oman Sovereign Sukuk SAOC, 5.93%, 10/31/25(a)			200		200,249
Qatar — 0.0%
State of Qatar, 4.82%, 03/14/49(a)			200		210,250
Russia — 0.3%
Russian Federation, 6.90%, 05/23/29	RUB		122,576		1,696,990
South Africa — 0.3%
Republic of South Africa:
6.25%, 03/31/36	ZAR		31,335		1,576,740
9.00%, 01/31/40			2,750		177,481
8.75%, 01/31/44			2,708		170,174
8.75%, 02/28/48			1,928		121,139
					2,045,534
Total Foreign Government Obligations — 1.4% (Cost: $8,738,425)					8,602,459

Security		Par (000)		Value
Non-Agency Mortgage-Backed Securities — 3.8%
Collateralized Mortgage Obligations — 0.5%
Seasoned Credit Risk Transfer Trust:
Series2018-2, Class MA, 3.50%, 11/25/57	USD		1,251	$	1,268,359
Series2018-3, Class MA, 3.50%, 08/25/57			1,717		1,740,614
					3,008,973
Commercial Mortgage-Backed Securities — 2.9%
AREIT Trust, Series 2018-CRE1, Class A, 3.33%, 02/14/35(a)(c)(d)			995		984,789
BANK, Series 2019-BN16, Class A4, 4.01%, 02/15/52			1,676		1,779,019
Benchmark Mortgage Trust, Series2019-B9, Class A5, 4.02%, 03/15/52			2,102		2,230,831
Commercial Mortgage Trust, Series 2017-PANW, Class A, 3.24%, 10/10/29(a)			4,050		4,081,551
CSAIL Commercial Mortgage Trust, Series2019-C15, Class A4, 4.05%, 03/15/52			2,335		2,468,891
CSMC Trust, Series2016-MFF, Class A, 4.08%, 11/15/33(a)(c)			478		480,175
LMREC, Inc., Series 2016-CRE2, Class A, 4.19%, 11/24/31(a)(c)			674		674,383
RAIT Trust, Series2017-FL7, Class A, 3.43%, 06/15/37(a)(c)			705		701,371
Wells Fargo Commercial Mortgage Trust,Series 2019-C49, Class A5, 4.02%, 03/15/52			4,073		4,294,977
					17,695,987
Interest Only Commercial Mortgage-Backed Securities — 0.4%(c)
CFCRE Commercial Mortgage Trust, Series2016-C4, Class XA, 1.73%, 05/10/58			7,467		688,976
Core Industrial Trust(a):
Series 2015-TEXW, Class XA, 0.77%, 02/10/34			28,981		541,024
Series 2015-WEST, Class XA, 0.93%, 02/10/37			14,427		705,047
CSAIL Commercial Mortgage Trust, Series2018-C14, Class XA, 0.57%, 11/15/51			3,507		152,447
					2,087,494
TotalNon-Agency Mortgage-Backed Securities — 3.8% (Cost: $22,638,930)					22,792,454
U.S. Government Sponsored Agency Securities — 68.7%
Agency Obligations — 0.7%
Federal Home Loan Bank, 4.00%, 04/10/28			4,100		4,487,083
Federal National Mortgage Association Variable Rate Notes, Series1996-W1, Class AL, 7.25%, 03/25/26(e)			6		6,413
					4,493,496
Collateralized Mortgage Obligations — 2.3%
Federal National Mortgage Association:
Series2011-8, Class ZA, 4.00%, 02/25/41			2,863		2,968,549
Series2014-27, Class VC, 4.00%, 05/25/31			3,236		3,395,926
Series2017-69, Class HA, 3.00%, 06/25/46			5,537		5,566,705
Government National Mortgage Association Variable Rate Notes, Series2014-107, Class WX, 6.81%, 07/20/39(e)			1,474		1,655,476
					13,586,656
Commercial Mortgage-Backed Securities — 2.7%
Federal Home Loan Mortgage Corp.:
Series K058, Class A2, 2.65%, 08/25/26			775		766,609
Series K079, Class A2, 3.93%, 06/25/28			2,345		2,527,371

SCHEDULES OF INVESTMENTS 53

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Series K087, Class A2, 3.77%, 12/25/28	USD		1,738	$	1,849,972
Federal Home Loan Mortgage Corp. Variable Rate Notes(e):
Series 2019-SB60, Class A10F, 3.31%, 01/25/29			2,277		2,312,167
Series K082, Class A2, 3.92%, 09/25/28			440		474,436
Series K086, Class A2, 3.86%, 11/25/28			3,140		3,367,425
Federal National Mortgage Association ACES Variable Rate Notes(e):
Series2017-M15, Class A2, 2.96%, 09/25/27			2,580		2,588,251
Series2018-M7, Class A2, 3.05%, 03/25/28			620		622,955
Series2019-M1, Class A2, 3.56%, 09/25/28			1,874		1,958,813
					16,467,999
Interest Only Commercial Mortgage-Backed Securities — 2.5%
Federal Home Loan Mortgage Corp. Variable Rate Notes, Series 2015-K718, Class X2A, 0.10%, 02/25/48(a)(e)			199,076		437,271
Federal National Mortgage Association ACES Variable Rate Notes, Series2015-M1, Class X2, 0.54%, 09/25/24(e)			67,972		1,644,608
Government National Mortgage Association Variable Rate Notes:
Series2005-50, 0.42%, 06/16/45(e)			1,889		14,696
Series2005-9, 0.55%, 01/16/45(e)			3,714		50,080
Series2006-30, 2.39%, 05/16/46(e)			1,157		66,919
Series2016-113, (LIBOR USD 1 Month + 0.00%), 1.18%, 02/16/58(b)			15,405		1,405,831
Series2016-119, (LIBOR USD 1 Month + 0.00%), 1.12%, 04/16/58(b)			37,729		3,136,231
Series2016-22, 0.77%, 11/16/55(e)			25,455		1,356,784
Series2016-45, 1.01%, 02/16/58(e)			33,881		2,585,494
Series2016-92, 1.01%, 04/16/58(e)			7,061		512,262
Series2017-30, 0.74%, 08/16/58(e)			7,053		434,939
Series2017-44, 0.70%, 04/17/51(e)			7,175		415,337
Series2017-53, 0.69%, 11/16/56(e)			19,808		1,132,059
Series2017-54, 0.65%, 12/16/58(e)			1,738		103,244
Series2017-61, 0.77%, 05/16/59(e)			4,869		340,833
Series2017-64, 0.72%, 11/16/57(e)			8,374		542,560
Series2017-72, 0.68%, 04/16/57(e)			12,675		773,636
					14,952,784
Mortgage-Backed Securities — 60.5%
Federal Home Loan Mortgage Corp.:
2.50%, 03/01/30 - 04/01/31			2,335		2,328,879
3.00%, 09/01/27 - 12/01/46			5,788		5,811,772
3.00%, 04/15/34(f)			2,067		2,086,940
3.50%, 04/15/34 - 04/15/49(f)			6,577		6,686,006
3.50%, 12/01/40 - 01/01/48			25,107		25,687,390
4.00%, 08/01/40 - 06/01/48			8,945		9,362,156
4.00%, 04/15/49(f)			5,272		5,426,762
4.50%, 02/01/39 - 08/01/48			4,189		4,440,152
4.50%, 04/15/49(f)			1,642		1,713,594
5.00%, 04/01/36 - 10/01/41			1,237		1,334,118
5.00%, 04/15/49(f)			415		439,446
5.50%, 06/01/41			1,244		1,363,874
Federal National Mortgage Association:
2.00%, 10/01/31 - 03/01/32			1,378		1,342,081
2.50%, 04/01/30 - 02/01/33			7,760		7,724,903
3.00%, 04/01/28 - 03/01/47			52,415		52,646,044
3.13%, 09/01/27			1,205		1,235,432

Security		Par (000)			Value
Mortgage-Backed Securities (continued)
Federal National Mortgage Association (continued)
3.16%, 03/01/27	USD		1,856		$	1,898,873
3.50%, 11/01/28 - 01/01/48			39,378			40,298,530
3.50%, 04/25/34 - 04/25/49(f)			3,029			3,084,152
4.00%, 09/01/33 - 04/01/48			41,678			43,513,225
4.00%, 04/25/34 - 05/25/49(f)			1,055			1,086,085
4.50%, 02/01/25 - 12/01/48			20,228			21,475,855
4.50%, 04/25/49 - 05/25/49(f)			10,105			10,522,940
5.00%, 11/01/32 - 02/01/49			10,889			11,550,047
5.00%, 04/25/49(f)			922			974,741
5.50%, 02/01/35 - 04/01/41			3,787			4,134,160
6.00%, 05/01/33 - 06/01/41			3,429			3,776,685
6.50%, 05/01/40			771			881,026
Government National Mortgage Association:
3.00%, 02/15/45 - 12/20/46			17,579			17,688,649
3.00%, 04/15/49(f)			563			565,419
3.50%, 01/15/42 - 10/20/46			29,070			29,768,023
3.50%, 05/15/49(f)			3,500			3,573,076
4.00%, 04/20/39 - 01/15/48			3,825			3,974,736
4.00%, 04/15/49 - 05/15/49(f)			15,961			16,468,348
4.50%, 12/20/39 - 09/20/48			4,530			4,766,583
4.50%, 04/15/49(f)			8,002			8,310,983
5.00%, 12/15/38 - 07/20/41			2,977			3,187,703
5.00%, 04/15/49(f)			77			80,442
7.00%, 06/15/23 - 11/15/23			—	(g)		55
Universal Mortgage Backed Securities, 4.00%, 06/25/49(f)			2,042			2,097,055
						363,306,940
Total U.S. Government Sponsored Agency Securities — 68.7% (Cost: $413,289,694)						412,807,875
U.S. Treasury Obligations — 59.9%
U.S. Treasury Bonds:
4.25%, 05/15/39			2,055			2,569,232
4.50%, 08/15/39			1,996			2,577,101
4.38%, 11/15/39			2,003			2,545,218
3.13%, 02/15/43(h)			7,800			8,264,649
2.88%, 05/15/43 - 11/15/46			10,067			10,215,277
3.63%, 08/15/43			7,444			8,552,458
3.75%, 11/15/43			7,900			9,261,207
3.00%, 02/15/47			1,419			1,472,490
3.00%, 08/15/48(h)			10,690			11,065,820
U.S. Treasury Inflation Linked Notes, 0.63%, 04/15/23(h)			13,265			13,356,744
U.S. Treasury Notes:
1.25%, 08/31/19(h)			20,000			19,896,875
1.00%, 10/15/19(h)			20,000			19,842,969
1.63%, 06/30/20 - 10/31/23			36,000			35,461,035
2.63%, 08/31/20 - 05/15/21(h)			50,703			50,956,274
1.13%, 06/30/21			14,000			13,659,297
2.25%, 07/31/21 - 02/15/27			38,104			38,011,013
2.13%, 09/30/21(h)			14,000			13,954,062
1.88%, 04/30/22			14,000			13,849,062
2.75%, 08/31/23(h)			25,750			26,301,211
2.00%, 04/30/24 - 11/15/26			37,277			36,686,548
2.75%, 08/31/25			12,640			12,967,850
2.88%, 08/15/28			7,870			8,176,807
Total U.S. Treasury Obligations — 59.9% (Cost: $355,022,471)						359,643,199
Total Long-Term Investments — 135.7% (Cost: $811,037,336)						815,176,544

54 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Short-Term Securities — 1.2%
Commercial Paper — 0.9%(i)
Macquarie Bank Ltd., 3.27%, 10/11/19	USD		5,200	$	5,123,390
Total Commercial Paper — 0.9% (Cost: $5,111,348)					5,123,390
		Shares
Money Market Funds — 0.3%(j)(k)
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.37%			1,907,371		1,907,371
Total Money Market Funds — 0.3% (Cost: $1,907,371)					1,907,371
Total Short-Term Securities — 1.2% (Cost: $7,018,719)					7,030,761
Total Options Purchased — 0.0% (Cost: $400,015)					87,099
Total Investments Before Options Written and TBA Sale Commitments — 136.9% (Cost: $818,456,070)					822,294,404
Total Options Written — (0.1)% (Premium Received — $386,547)					(549,477	)
		Par (000)
TBA Sale Commitments — (27.5)%(f)
Mortgage-Backed Securities — (27.5)%
Federal Home Loan Mortgage Corp.:
3.50%, 04/15/34 - 04/15/49	USD		11,962		(12,148,115	)
4.00%, 04/15/49			5,272		(5,426,762	)
4.50%, 04/15/49			1,642		(1,713,594	)
5.00%, 04/15/49			415		(439,446	)
Federal National Mortgage Association:
2.00%, 04/25/34			1,366		(1,330,263	)
2.50%, 04/25/34			2,959		(2,941,246	)
3.00%, 04/25/34 - 04/25/49			20,908		(20,977,682	)
3.50%, 04/25/34 - 04/25/49			35,059		(35,567,487	)

		Par (000)		Value
TBA Sale Commitments (continued)
Mortgage-Backed Securities (continued)
Federal National Mortgage Association (continued)
4.00%, 04/25/34 - 04/25/49	USD		35,689	$	(36,712,603	)
4.50%, 04/25/34 - 04/25/49			12,270		(12,773,663	)
5.00%, 04/25/49 - 05/25/49			1,415		(1,495,344	)
5.50%, 04/25/49			2,704		(2,886,955	)
6.00%, 04/25/49			2,510		(2,704,770	)
Government National Mortgage Association:
3.00%, 04/15/49 - 05/15/49			14,454		(14,514,500	)
3.50%, 04/15/49			6,578		(6,720,405	)
4.00%, 04/15/49			1,370		(1,414,498	)
4.50%, 04/15/49			4,195		(4,364,848	)
Universal Mortgage Backed Securities, 3.00%, 06/25/49			1,061		(1,054,418	)
Total TBA Sale Commitments — (27.5)% (Proceeds: $164,081,355)					(165,186,599	)
Total Investments Net of Options Written and TBA Sale Commitments — 109.3% (Cost: $653,988,168)					656,558,328
Liabilities in Excess of Other Assets — (9.3)%					(55,727,273	)
Net Assets — 100.0%				$	600,831,055

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

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

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

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

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

^(f)  Represents or includes a TBA transaction.

^(g)  Amount is less than $500.

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

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

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

^(k)  During the six months ended March 31, 2019, investments in issuers considered to be an affiliate 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 09/30/18		Net Activity			Shares Held at 03/31/19		Value at 03/31/19		Income		Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		6,255,598		(4,348,227	)		1,907,371	$	1,907,371	$	43,374	$	—	$	—

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

SCHEDULES OF INVESTMENTS 55

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

Reverse Repurchase Agreements

Counterparty	Interest Rate			Trade Date		Maturity Date		Face Value		Face Value Including Accrued Interest		Type of Non-Cash Underlying Collateral	Remaining Contractual Maturity of the Agreements
Barclays Capital, Inc.		3.70	%		03/29/19		04/01/19	$	26,361,562	$	26,369,690	U.S. Treasury Obligations	Overnight
Deutsche Bank Securities, Inc.		3.75	%		03/29/19		04/01/19		23,863,428		23,870,885	U.S. Treasury Obligations	Overnight
Merrill Lynch, Pierce, Fenner & Smith Inc.		3.60	%		03/29/19		04/01/19		11,064,150		11,067,469	U.S. Treasury Obligations	Overnight
Merrill Lynch, Pierce, Fenner & Smith Inc.		3.60	%		03/29/19		04/01/19		19,925,000		19,930,977	U.S. Treasury Obligations	Overnight
Merrill Lynch, Pierce, Fenner & Smith Inc.		3.60	%		03/29/19		04/01/19		27,386,250		27,394,466	U.S. Treasury Obligations	Overnight
Merrill Lynch, Pierce, Fenner & Smith Inc.		3.60	%		03/29/19		04/01/19		14,105,000		14,109,232	U.S. Treasury Obligations	Overnight
Merrill Lynch, Pierce, Fenner & Smith Inc.		3.60	%		03/29/19		04/01/19		19,925,000		19,930,978	U.S. Treasury Obligations	Overnight
Merrill Lynch, Pierce, Fenner & Smith Inc.		3.60	%		03/29/19		04/01/19		13,384,525		13,388,540	U.S. Treasury Obligations	Overnight
Merrill Lynch, Pierce, Fenner & Smith Inc.		3.60	%		03/29/19		04/01/19		5,306,250		5,307,842	U.S. Treasury Obligations	Overnight
								$	161,321,165	$	161,370,079

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount(000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
U.S. Treasury 10 Year Note		264		06/19/19	$	32,794	$	8,757
U.S. Treasury Long Bond		71		06/19/19		10,626		308,756
U.S. Treasury 2 Year Note		419		06/28/19		89,286		363,078
U.S. Treasury 5 Year Note		277		06/28/19		32,084		220,503
90-day Eurodollar		353		12/16/19		86,106		182,838
								1,083,932
Short Contracts
U.S. Treasury 10 Year Ultra Note		48		06/19/19		6,374		(176,210	)
U.S. Treasury Ultra Bond		13		06/19/19		2,184		(93,963	)
90-day Eurodollar		353		12/14/20		86,357		(285,020	)
								(555,193	)
							$	528,739

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	986,000	BRL	3,798,270	BNP Paribas SA		04/02/19	$	15,902
USD	232,772	BRL	880,677	Goldman Sachs International		04/02/19		7,843
USD	160,000	BRL	615,896	JPMorgan Chase Bank NA		04/02/19		2,697
USD	58,000	COP	180,989,000	Natwest Markets plc		04/05/19		1,239
MXN	2,848,650	USD	146,000	Citibank NA		04/10/19		572
USD	73,000	CLP	48,036,190	BNP Paribas SA		04/10/19		2,410
USD	73,000	CLP	48,807,800	JPMorgan Chase Bank NA		04/10/19		1,276
IDR	1,310,360,543	USD	91,517	BNP Paribas SA		04/15/19		229
IDR	808,392,138	USD	56,484	Deutsche Bank AG		04/15/19		116
CAD	139,381	USD	104,000	Deutsche Bank AG		04/17/19		340
COP	189,344,900	USD	59,300	Standard Chartered Bank		04/17/19		38
MXN	1,157,816	USD	59,000	Citibank NA		04/17/19		506

56 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
MXN	1,149,308	USD	59,000	HSBC Bank plc		04/17/19	$	69
MXN	569,995	USD	29,200	State Street Bank and Trust Co.		04/17/19		95
TRY	86,325	USD	15,000	Citibank NA		04/17/19		149
TRY	200,900	USD	35,000	JPMorgan Chase Bank NA		04/17/19		256
USD	22,000	ARS	952,600	BNP Paribas SA		04/17/19		458
USD	74,217	AUD	104,000	Goldman Sachs International		04/17/19		349
USD	104,000	CAD	138,300	Morgan Stanley & Co. International plc		04/17/19		469
USD	118,607	CLP	80,245,174	BNP Paribas SA		04/17/19		684
USD	59,300	COP	187,838,680	Natwest Markets plc		04/17/19		434
USD	89,410	MXN	1,710,771	Goldman Sachs International		04/17/19		1,485
USD	59,000	TRY	334,058	Citibank NA		04/17/19		376
ZAR	1,609,389	USD	111,000	Barclays Bank plc		04/17/19		339
ZAR	1,609,478	USD	111,000	Goldman Sachs International		04/17/19		345
USD	25,000	ARS	1,040,500	BNP Paribas SA		04/22/19		1,626
USD	584,100	BRL	2,259,328	BNP Paribas SA		05/03/19		8,208
USD	41,300	BRL	157,452	Citibank NA		05/03/19		1,166
USD	245,491	IDR	3,496,775,000	Bank of America NA		05/29/19		2,400
USD	167,881	IDR	2,382,735,567	Citibank NA		05/29/19		2,236
USD	100,863	IDR	1,436,285,000	Goldman Sachs International		05/29/19		1,014
USD	86,649	IDR	1,239,866,989	HSBC Bank plc		05/29/19		455
USD	67,677	IDR	967,640,000	Morgan Stanley & Co. International plc		05/29/19		407
USD	67,653	IDR	967,641,026	UBS AG		05/29/19		384
USD	448,276	COP	1,403,104,000	Credit Suisse International		05/30/19		9,591
USD	445,658	MXN	8,682,897	Barclays Bank plc		05/30/19		2,606
USD	467,679	ZAR	6,510,000	Deutsche Bank AG		05/30/19		19,707
AUD	90,000	USD	63,485	HSBC Bank plc		06/19/19		513
AUD	42,000	USD	29,751	Morgan Stanley & Co. International plc		06/19/19		115
CAD	1,215,000	NOK	7,778,187	BNP Paribas SA		06/19/19		6,411
CAD	115,725	NZD	125,000	Citibank NA		06/19/19		1,514
EUR	1,192,000	MXN	26,045,438	BNP Paribas SA		06/19/19		21,149
JPY	49,262,773	CAD	596,000	Morgan Stanley & Co. International plc		06/19/19		372
JPY	1,206,523	NZD	15,838	Citibank NA		06/19/19		151
JPY	11,806,617	SEK	972,000	JPMorgan Chase Bank NA		06/19/19		2,019
JPY	7,712,792	SEK	634,949	Morgan Stanley & Co. International plc		06/19/19		1,321
JPY	27,109,401	USD	245,000	Citibank NA		06/19/19		1,119
JPY	26,666,787	USD	241,000	Morgan Stanley & Co. International plc		06/19/19		1,100
NZD	715,000	USD	486,232	Citibank NA		06/19/19		1,425
USD	401,647	EUR	355,000	BNP Paribas SA		06/19/19		754
USD	486,000	JPY	53,120,358	Standard Chartered Bank		06/19/19		3,735
USD	596,000	MXN	11,639,880	Goldman Sachs International		06/19/19		3,872
USD	2,191,930	EUR	1,690,000	Deutsche Bank AG		12/13/19		254,930
USD	2,206,126	EUR	1,690,000	Deutsche Bank AG		02/25/20		257,874
JPY	225,690,000	USD	2,091,271	JPMorgan Chase Bank NA		03/16/20		2,219
USD	2,252,845	JPY	225,690,000	HSBC Bank plc		03/16/20		159,353
								808,422
BRL	2,667,938	USD	691,100	BNP Paribas SA		04/02/19		(9,696	)
BRL	222,896	USD	59,000	Goldman Sachs International		04/02/19		(2,071	)
BRL	444,130	USD	115,000	HSBC Bank plc		04/02/19		(1,567	)
BRL	1,920,060	USD	513,672	UBS AG		04/02/19		(23,279	)
COP	180,148,000	USD	58,000	Citibank NA		04/05/19		(1,502	)
CLP	156,904,383	USD	235,000	Natwest Markets plc		04/10/19		(4,426	)
USD	146,000	MXN	2,847,102	HSBC Bank plc		04/10/19		(492	)
MXN	4,304,110	USD	222,376	HSBC Bank plc		04/15/19		(1,094	)
CLP	40,758,000	USD	60,000	BNP Paribas SA		04/17/19		(105	)
CLP	39,131,750	USD	59,000	Citibank NA		04/17/19		(1,495	)
COP	237,450,000	USD	75,000	Natwest Markets plc		04/17/19		(586	)
MXN	3,493,165	USD	180,000	Citibank NA		04/17/19		(468	)
MXN	1,431,671	USD	74,000	HSBC Bank plc		04/17/19		(419	)
TRY	336,005	USD	59,000	BNP Paribas SA		04/17/19		(34	)
USD	147,875	IDR	2,129,916,709	Bank of America NA		04/17/19		(1,213	)

SCHEDULES OF INVESTMENTS 57

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	74,501	IDR	1,076,543,207	Citibank NA		04/17/19	$	(853	)
USD	59,300	MXN	1,169,402	Citibank NA		04/17/19		(802	)
USD	119,000	TRY	682,441	BNP Paribas SA		04/17/19		(763	)
USD	193,500	ZAR	2,822,958	BNP Paribas SA		04/17/19		(1,795	)
ZAR	4,838,863	USD	335,877	BNP Paribas SA		04/17/19		(1,121	)
ZAR	1,278,565	USD	89,000	Citibank NA		04/17/19		(548	)
ZAR	680,445	USD	47,123	Morgan Stanley & Co. International plc		04/17/19		(49	)
ARS	1,057,500	USD	25,000	BNP Paribas SA		04/22/19		(1,244	)
ARS	1,196,250	USD	29,000	Natwest Markets plc		04/25/19		(2,234	)
BRL	1,023,095	USD	264,000	BNP Paribas SA		05/03/19		(3,218	)
BRL	458,308	USD	119,000	Goldman Sachs International		05/03/19		(2,179	)
USD	59,300	BRL	236,726	Goldman Sachs International		05/03/19		(1,040	)
USD	35,000	TRY	209,650	BNP Paribas SA		05/28/19		(559	)
IDR	893,527,783	USD	62,867	Bank of America NA		05/29/19		(750	)
IDR	1,489,207,784	USD	104,527	JPMorgan Chase Bank NA		05/29/19		(1,000	)
ARS	3,039,100	USD	73,000	BNP Paribas SA		05/30/19		(8,085	)
ARS	1,675,200	USD	40,000	Deutsche Bank AG		05/30/19		(4,218	)
COP	477,370,000	USD	151,498	Credit Suisse International		05/30/19		(2,247	)
COP	627,569,000	USD	199,325	JPMorgan Chase Bank NA		05/30/19		(3,114	)
COP	298,165,000	USD	94,686	UBS AG		05/30/19		(1,463	)
MXN	3,092,595	USD	158,401	Barclays Bank plc		05/30/19		(598	)
ZAR	3,054,979	USD	212,765	Bank of America NA		05/30/19		(2,542	)
USD	15,000	TRY	90,525	Citibank NA		06/17/19		(141	)
USD	35,000	TRY	210,700	JPMorgan Chase Bank NA		06/17/19		(241	)
ARS	672,075	USD	14,500	BNP Paribas SA		06/18/19		(513	)
ARS	2,611,700	USD	59,000	BNP Paribas SA		06/19/19		(4,723	)
AUD	517,000	USD	367,776	HSBC Bank plc		06/19/19		(142	)
BRL	6,684,194	USD	1,739,000	JPMorgan Chase Bank NA		06/19/19		(41,679	)
EUR	355,000	USD	406,546	Morgan Stanley & Co. International plc		06/19/19		(5,653	)
IDR	2,136,915,000	USD	148,500	Bank of America NA		06/19/19		(328	)
IDR	2,126,520,000	USD	148,500	JPMorgan Chase Bank NA		06/19/19		(1,049	)
MXN	26,110,352	EUR	1,192,000	JPMorgan Chase Bank NA		06/19/19		(17,847	)
MXN	11,560,016	USD	596,000	Citibank NA		06/19/19		(7,934	)
NOK	7,804,005	CAD	1,215,000	Toronto Dominion Bank		06/19/19		(3,408	)
NZD	125,000	CAD	115,571	Goldman Sachs International		06/19/19		(1,399	)
NZD	15,838	JPY	1,191,799	Bank of America NA		06/19/19		(18	)
SEK	1,606,949	JPY	19,363,900	Citibank NA		06/19/19		(1,929	)
USD	430,807	AUD	607,000	Deutsche Bank AG		06/19/19		(825	)
USD	29,663	AUD	42,000	Goldman Sachs International		06/19/19		(203	)
USD	487,443	NZD	715,000	Goldman Sachs International		06/19/19		(214	)
EUR	1,690,000	USD	2,067,749	JPMorgan Chase Bank NA		12/13/19		(130,748	)
EUR	1,690,000	USD	2,082,663	JPMorgan Chase Bank NA		02/25/20		(134,411	)
								(442,274	)
	Net Unrealized Appreciation						$	366,148

Exchange-Traded Options Purchased

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Put
U.S. Treasury 10 Year Note		173		04/26/19	USD	122.00	USD	17,300	$	5,406
U.S. Treasury 10 Year Note		352		04/26/19	USD	122.50	USD	35,200		16,500
									$	21,906

58 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

OTC Currency Options Purchased

Description	Counterparty	Expiration Date		Exercise Price			Notional Amount (000)			Value
Put
USD Currency	BNP Paribas SA		04/26/19		ZAR	14.40		USD	90	$	1,195

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Description

Rate

Frequency

Rate

Frequency

Put

10-Year Interest Rate Swap

3.77%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

04/24/19

3.77

%

USD

2,135

$

—

5-Year Interest Rate Swap

2.72%

Semi-Annual

3 month LIBOR

Quarterly

Barclays Bank plc

02/03/20

2.72

%

USD

7,000

20,644

10-Year Interest Rate Swap

3.20%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

8,900

21,677

10-Year Interest Rate Swap

3.20%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

8,900

21,677

$

63,998

Exchange-Traded Options Written

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
90-day Eurodollar March 2020 Futures		249		03/16/20	USD	98.00	USD	62,250	$	(68,475	)

OTC Interest Rate Swaptions Written

Description	Paid by the Fund			Received by the Fund			Counterparty	Expiration Date		Exercise Rate			Notional Amount (000)			Value
	Rate		Frequency	Rate		Frequency
Call
2-Year Interest Rate Swap		3 month LIBOR	Quarterly		2.85%	Semi-Annual	Barclays Bank plc		05/20/19		2.85	%		USD	29,000	$	(282,917	)
10-Year Interest Rate Swap		3 month LIBOR	Quarterly		2.38%	Semi-Annual	Citibank NA		03/27/20		2.38	%		USD	2,395		(44,232	)
10-Year Interest Rate Swap		3 month LIBOR	Quarterly		2.42%	Semi-Annual	Barclays Bank plc		03/30/20		2.42	%		USD	2,395		(47,782	)
																	(374,931	)
Put
2-Year Interest Rate Swap		3.33%	Semi-Annual		3 month LIBOR	Quarterly	Citibank NA		04/30/19		3.33	%		USD	29,000		—
10-Year Interest Rate Swap		2.38%	Semi-Annual		3 month LIBOR	Quarterly	Citibank NA		03/27/20		2.38	%		USD	2,395		(54,843	)
10-Year Interest Rate Swap		2.42%	Semi-Annual		3 month LIBOR	Quarterly	Barclays Bank plc		03/30/20		2.42	%		USD	2,395		(51,228	)
																	(106,071	)
																$	(481,002	)

Centrally Cleared Inflation Swaps

Paid by the Fund		Received by the Fund		Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Reference	Frequency	Rate	Frequency
3.41%	At Termination	UK Retail Price Index All Items Monthly	At Termination		03/15/24		GBP	6,556	$	34,055		$	—	$	34,055
Eurostat HICP Ex. Tobacco All Items Monthly	At Termination	1.11%	At Termination		03/15/24		EUR	9,526		67,272			—		67,272
UK Retail Price Index All Items Monthly	At Termination	3.44%	At Termination		03/15/24		GBP	1,988		(5,699	)		—		(5,699	)
1.30%	At Termination	Eurostat HICP Ex. Tobacco All Items Monthly	At Termination		03/15/29		EUR	9,526		(149,105	)		—		(149,105	)
UK Retail Price Index All Items Monthly	At Termination	3.49%	At Termination		03/15/29		GBP	6,556		(29,132	)		—		(29,132	)
									$	(82,609	)	$	—	$	(82,609	)

SCHEDULES OF INVESTMENTS 59

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund		Effective Date			Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
0.99%	Semi-Annual	6 month LIBOR	Semi-Annual		N/A			03/20/20	GBP	22,395	$	(11,776	)	$	—	$	(11,776	)
28 day MXIBTIIE	Monthly	8.21%	Monthly		N/A			10/07/20	MXN	15,001		653			—		653
1.37%	Semi-Annual	3 month LIBOR	Quarterly		N/A			11/30/20	USD	10,970		165,200			—		165,200
3 month LIBOR	Quarterly	2.63%	Semi-Annual		N/A			01/08/21	USD	31,000		98,217			—		98,217
2.90%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/04/21	USD	28,900		(277,153	)		—		(277,153	)
2.70%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/07/21	USD	31,300		(180,633	)		—		(180,633	)
2.33%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/29/21	USD	1,890		2,261			—		2,261
2.35%	Semi-Annual	3 month LIBOR	Quarterly		04/01/19	(a)		04/01/21	USD	942		641			—		641
3 month LIBOR	Quarterly	2.39%	Semi-Annual		04/02/19	(a)		04/02/21	USD	2,340		—			—		—
3 month BA	Semi-Annual	1.81%	Semi-Annual		03/22/21	(a)		03/22/22	CAD	41,725		(10,478	)		—		(10,478	)
6 month LIBOR	Semi-Annual	1.25%	Semi-Annual		03/22/21	(a)		03/22/22	GBP	23,325		58,849			—		58,849
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22	MXN	4,224		5,106			—		5,106
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22	MXN	3,205		3,848			—		3,848
2.50%	Semi-Annual	3 month LIBOR	Quarterly		N/A			01/29/23	USD	11,601		(82,954	)		—		(82,954	)
28 day MXIBTIIE	Monthly	8.39%	Monthly		N/A			01/18/24	MXN	7,223		8,791			—		8,791
28 day MXIBTIIE	Monthly	8.13%	Monthly		N/A			02/02/24	MXN	3,790		2,481			—		2,481
28 day MXIBTIIE	Monthly	8.14%	Monthly		N/A			02/05/24	MXN	2,724		1,848			—		1,848
3 month LIBOR	Quarterly	2.61%	Semi-Annual		N/A			02/07/24	USD	7,000		99,857			—		99,857
2.71%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/18/24	USD	17,400		(336,949	)		—		(336,949	)
3 month LIBOR	Quarterly	2.13%	Semi-Annual		N/A			08/25/25	USD	130		(1,576	)		—		(1,576	)
3.04%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/31/25	USD	18,200		(789,853	)		—		(789,853	)
3.07%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/31/25	USD	30,810		(1,395,329	)		—		(1,395,329	)
2.85%	Semi-Annual	3 month LIBOR	Quarterly		N/A			12/21/28	USD	2,600		(114,273	)		—		(114,273	)
2.85%	Semi-Annual	3 month LIBOR	Quarterly		N/A			12/24/28	USD	136		(6,069	)		—		(6,069	)
2.72%	Semi-Annual	3 month LIBOR	Quarterly		N/A			01/08/29	USD	781		(19,527	)		—		(19,527	)
3 month LIBOR	Quarterly	2.69%	Semi-Annual		N/A			01/08/29	USD	1,392		31,540			—		31,540
2.81%	Semi-Annual	3 month LIBOR	Quarterly		N/A			01/29/29	USD	113		(3,778	)		—		(3,778	)
2.76%	Semi-Annual	3 month LIBOR	Quarterly		N/A			01/31/29	USD	124		(3,655	)		—		(3,655	)
3 month LIBOR	Quarterly	2.69%	Semi-Annual		N/A			02/26/29	USD	587		13,434			—		13,434
3 month LIBOR	Quarterly	2.64%	Semi-Annual		N/A			03/19/29	USD	638		11,715			—		11,715
2.56%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/22/29	USD	340		(3,772	)		—		(3,772	)
3 month LIBOR	Quarterly	2.45%	Semi-Annual		N/A			03/26/29	USD	310		314			—		314
2.42%	Semi-Annual	3 month LIBOR	Quarterly		04/02/19	(a)		04/02/29	USD	309		—			—		—
3 month LIBOR	Quarterly	3.35%	Semi-Annual		04/26/19	(a)		04/26/29	USD	346		28,281			—		28,281
3.23%	Semi-Annual	3 month LIBOR	Quarterly		04/26/19	(a)		04/26/29	USD	119		(8,490	)		—		(8,490	)
3.26%	Semi-Annual	3 month LIBOR	Quarterly		04/26/19	(a)		04/26/29	USD	490		(36,364	)		—		(36,364	)
2.93%	Semi-Annual	3 month LIBOR	Quarterly		06/12/19	(a)		06/12/29	USD	565		(24,983	)		—		(24,983	)
											$	(2,774,576	)	$	—	$	(2,774,576	)

^(a)  Forward swap.

60 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Republic of Colombia		1.00	%		Quarterly	Citibank NA		06/20/24		USD	538	$	2,008		$	5,293		$	(3,285	)
Republic of South Africa		1.00	%		Quarterly	Goldman Sachs International		06/20/24		USD	691		31,954			30,665			1,289
Republic of the Philippines		1.00	%		Quarterly	Citibank NA		06/20/24		USD	430		(8,489	)		(6,817	)		(1,672	)
United Mexican States		1.00	%		Quarterly	Citibank NA		06/20/24		USD	1,116		10,593			19,609			(9,016	)
United Mexican States		1.00	%		Quarterly	Citibank NA		06/20/24		USD	161		1,528			2,829			(1,301	)
												$	37,594		$	51,579		$	(13,985	)

OTC Interest Rate Swaps

Paid by the Fund		Received by the Fund		Counterparty		Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
1 day BZDIOVER	At Termination	8.27%	At Termination		JPMorgan Chase Bank NA		01/02/23	BRL	1,367	$	2,123		$	—	$	2,123
1 day BZDIOVER	At Termination	8.35%	At Termination		Goldman Sachs International		01/02/23	BRL	1,303		2,932			—		2,932
1 day BZDIOVER	At Termination	8.53%	At Termination		Citibank NA		01/02/23	BRL	2,380		12,975			—		12,975
1 day BZDIOVER	At Termination	8.49%	At Termination		Citibank NA		01/02/25	BRL	4,224		(40	)		—		(40	)
1 day BZDIOVER	At Termination	8.56%	At Termination		BNP Paribas SA		01/02/25	BRL	2,116		1,183			—		1,183
6.31%	Monthly	28 day MXIBTIIE	Monthly		Deutsche Bank AG		08/11/25	MXN	7,502		31,532			—		31,532
										$	50,705		$	—	$	50,705

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

Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate		0.25	%
28 day MXIBTIIE	Mexico Interbank TIIE28-Day		8.52
3 month BA	3 month Canadian Bankers Acceptances		2.02
3 month LIBOR	London Interbank Offered Rate		2.60
6 month LIBOR GBP	London Interbank Offered Rate		0.95

Balances reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps, OTC Swaps and Options Written

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation			Value
Centrally Cleared Swaps(a)	$	—	$	—		$	634,363	$	(3,491,548	)	$	—
OTC Swaps		58,396		(6,817	)		52,034		(15,314	)		—
Options Written		N/A		N/A			70,654		(233,584	)		(549,477	)

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

SCHEDULES OF INVESTMENTS 61

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation(a)	$	—	$	—	$	—	$	—	$	1,083,932	$	—	$	1,083,932
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		808,422		—		—		808,422
Options purchased
Investments at value — unaffiliated(b)		—		—		—		1,195		85,904		—		87,099
Swaps — centrally cleared
Net unrealized appreciation(a)		—		—		—		—		533,036		101,327		634,363
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		59,685		—		—		50,745		—		110,430
	$	—	$	59,685	$	—	$	809,617	$	1,753,617	$	101,327	$	2,724,246
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	—	$	—	$	—	$	—	$	555,193	$	—	$	555,193
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		442,274		—		—		442,274
Options written
Options written at value		—		—		—		—		549,477		—		549,477
Swaps — centrally cleared
Net unrealized depreciation(a)		—		—		—		—		3,307,612		183,936		3,491,548
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		22,091		—		—		40		—		22,131
	$	—	$	22,091	$	—	$	442,274	$	4,412,322	$	183,936	$	5,060,623

^(a)  Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

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

For the six month ended March 31, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—		$	803,757		$	—		$	803,757
Forward foreign currency exchange contracts		—		—			—		106,522			—			—			106,522
Options purchased(a)		—		—			—		(15,954	)		137,070			—			121,116
Options written		—		—			—		—			219,132			—			219,132
Swaps		—		(10,849	)		—		2,016			(290,448	)		38,598			(260,683	)
	$	—	$	(10,849	)	$	—	$	92,584		$	869,511		$	38,598		$	989,844
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—		$	—	$	—		$	984,224		$	—		$	984,224
Forward foreign currency exchange contracts		—		—			—		(310,418	)		—			—			(310,418	)
Options purchased(b)		—		—			—		22,059			(142,672	)		—			(120,613	)
Options written		—		—			—		—			(207,780	)		—			(207,780	)
Swaps		—		(3,851	)		—		—			(3,352,183	)		(86,102	)		(3,442,136	)
	$	—	$	(3,851	)	$	—	$	(288,359	)	$	(2,718,411	)	$	(86,102	)	$	(3,096,723	)

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

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

62 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	196,883,177
Average notional value of contracts — short		78,115,274
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		27,728,560
Average amounts sold — in USD		22,588,448
Options:
Average value of option contracts purchased		11,551
Average value of option contracts written		34,238
Average notional value of swaption contracts purchased		55,201,000
Average notional value of swaption contracts written		182,000,000
Credit default swaps:
Average notional value — buy protection		2,845,863
Interest rate swaps:
Average notional value — pays fixed rate		237,293,154
Average notional value — receives fixed rate		110,938,607
Currency swaps:
Average notional value — pays		22,091
Average notional value — receives		21,838
Inflation swaps:
Average notional value — pays fixed rate		9,611,924
Average notional value — receives fixed rate		12,076,267

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	108,790		$	279,484
Forward foreign currency exchange contracts		808,422			442,274
Options(a)		87,099			549,477
Swaps — Centrally cleared		211,858			—
Swaps — OTC(b)		110,430			22,131
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	1,326,599		$	1,293,366
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(342,554	)		(347,959	)
Total derivative assets and liabilities subject to an MNA	$	984,045		$	945,407

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

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

SCHEDULES OF INVESTMENTS 63

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets (b)(d)
Bank of America NA	$	2,400	$	(2,400	)	$	—	$	—	$	—
Barclays Bank plc		23,589		(23,589	)		—		—		—
BNP Paribas SA		60,209		(31,856	)		—		—		28,353
Citibank NA		93,274		(93,274	)		—		—		—
Credit Suisse International		9,591		(2,247	)		—		—		7,344
Deutsche Bank AG		564,499		(5,043	)		—		—		559,456
Goldman Sachs International		49,794		(7,106	)		—		—		42,688
HSBC Bank plc		160,390		(3,714	)		—		—		156,676
JPMorgan Chase Bank NA		10,590		(10,590	)		—		—		—
Morgan Stanley & Co. International plc		3,784		(3,784	)		—		—		—
Natwest Markets plc		1,673		(1,673	)		—		—		—
Standard Chartered Bank		3,773		—			—		—		3,773
State Street Bank and Trust Co.		95		—			—		—		95
UBS AG		384		(384	)		—		—		—
	$	984,045	$	(185,660	)	$	—	$	—	$	798,385

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities (c)(d)
Bank of America NA	$	4,851	$	(2,400	)	$	—	$	—	$	2,451
Barclays Bank plc		382,525		(23,589	)		—		—		358,936
BNP Paribas SA		31,856		(31,856	)		—		—		—
Citibank NA		136,878		(93,274	)		—		—		43,604
Credit Suisse International		2,247		(2,247	)		—		—		—
Deutsche Bank AG		5,043		(5,043	)		—		—		—
Goldman Sachs International		7,106		(7,106	)		—		—		—
HSBC Bank plc		3,714		(3,714	)		—		—		—
JPMorgan Chase Bank NA		330,089		(10,590	)		—		—		319,499
Morgan Stanley & Co. International plc		5,702		(3,784	)		—		—		1,918
Natwest Markets plc		7,246		(1,673	)		—		—		5,573
Toronto Dominion Bank		3,408		—			—		—		3,408
UBS AG		24,742		(384	)		—		—		24,358
	$	945,407	$	(185,660	)	$	—	$	—	$	759,747

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

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

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

^(d)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

64 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock U.S. Government Bond Portfolio

Fair Value Hierarchy as of Period End

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

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

	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—		$	10,746,462		$	—	$	10,746,462
Foreign Agency Obligations		—			584,095			—		584,095
Foreign Government Obligations		—			8,602,459			—		8,602,459
Non-Agency Mortgage-Backed Securities		—			21,807,665			984,789		22,792,454
U.S. Government Sponsored Agency Securities		—			412,807,875			—		412,807,875
U.S. Treasury Obligations		—			359,643,199			—		359,643,199
Short-Term Securities:
Commercial Paper		—			5,123,390			—		5,123,390
Money Market Funds		1,907,371			—			—		1,907,371
Options Purchased:
Foreign currency exchange contracts		—			1,195			—		1,195
Interest rate contracts		21,906			63,998			—		85,904
Liabilities:
TBA Sale Commitments		—			(165,186,599	)		—		(165,186,599	)
	$	1,929,277		$	654,193,739		$	984,789	$	657,107,805
Derivative Financial Instruments(a)
Assets:
Credit contracts	$	—		$	1,289		$	—	$	1,289
Foreign currency exchange contracts		—			808,422			—		808,422
Interest rate contracts		1,083,932			583,781			—		1,667,713
Other contracts		—			101,327			—		101,327
Liabilities:
Credit contracts		—			(15,274	)		—		(15,274	)
Foreign currency exchange contracts		—			(442,274	)		—		(442,274	)
Interest rate contracts		(623,668	)		(3,788,654	)		—		(4,412,322	)
Other contracts		—			(183,936	)		—		(183,936	)
	$	460,264		$	(2,935,319	)	$	—	$	(2,475,055	)

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

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount or face value, including accrued interest, for financial statements purposes. As of period end, reverse repurchase agreements of $161,370,079 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended March 31, 2019, there were no transfers between levels.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 65

Statements of Assets and Liabilities  (unaudited)

March 31, 2019

	BlackRock Credit Strategies Income Fund			BlackRock GNMA Portfolio			BlackRock U.S. Government Bond Portfolio
ASSETS
Investments at value — unaffiliated(a)	$	723,110,447		$	809,564,223		$	820,387,033
Investments at value — affiliated(b)		92,319,141			3,339,093			1,907,371
Cash		—			7,379			181,757
Cash pledged:
Collateral — OTC derivatives		200,000			—			—
Collateral — TBA commitments		—			—			240,000
Futures contracts		719,984			1,031,310			895,650
Centrally cleared swaps		5,000			794,000			1,878,560
Foreign currency at value(c)		1,144,963			—			1,300,473
Receivables:
Investments sold		6,217,269			106,183,222			50,930,781
Swaps		—			—			18,223
TBA sale commitments		—			155,376,605			164,081,355
Capital shares sold		6,128,934			1,505,449			2,294,694
Dividends — affiliated		159,959			5,232			5,877
Dividends — unaffiliated		3,412			22			192
Interest — unaffiliated		6,855,851			2,480,611			3,449,784
From the Manager		30,422			28,458			71,666
Variation margin on futures contracts		176,330			235,833			108,790
Variation margin on centrally cleared swaps		210			129,536			211,858
Swap premiums paid		45,773			—			58,396
Unrealized appreciation on:
Forward foreign currency exchange contracts		444,992			—			808,422
OTC swaps		4,545			—			52,034
Prepaid expenses		96,073			50,024			81,020
Total assets		837,663,305			1,080,730,997			1,048,963,936
LIABILITIES
Bank overdraft		142,310			—			—
Cash received:
Collateral — OTC derivatives		320,000			—			840,000
Collateral — TBA commitments		—			497,000			—
Options written at value(d)		23,037			260,896			549,477
TBA sale commitments at value(e)		—			157,092,126			165,186,599
Reverse repurchase agreements at value		—			98,934,029			161,370,079
Payables:
Investments purchased		31,972,693			369,959,835			114,236,649
Administration fees		27,402			6,504			10,297
Capital shares redeemed		4,092,553			1,291,991			3,631,537
Custodian fees		51,136			28,675			45,442
Income dividend distributions		364,724			345,470			714,332
Investment advisory fees		279,201			88,331			140,548
Trustees’ and Officer’s fees		4,772			6,462			6,373
Professional fees		89,026			62,894			79,124
Service and distribution fees		42,713			59,899			121,635
Transfer agent fees		206,353			173,345			284,362
Other accrued expenses		328,492			100,797			172,538
Variation margin on futures contracts		315,321			63,850			279,484
Swap premiums received		114,984			—			6,817
Unrealized depreciation on:
Forward foreign currency exchange contracts		5,118			—			442,274
OTC swaps		130,375			—			15,314
Unfunded floating rate loan interests		216			—			—
Total liabilities		38,510,426			628,972,104			448,132,881
NET ASSETS	$	799,152,879		$	451,758,893		$	600,831,055
NET ASSETS CONSIST OF
Paid-in capital	$	806,984,960		$	527,484,872		$	658,376,639
Accumulated loss		(7,832,081	)		(75,725,979	)		(57,545,584	)
NET ASSETS	$	799,152,879		$	451,758,893		$	600,831,055
(a) Investments at cost — unaffiliated	$	722,970,184		$	811,032,718		$	816,548,699
(b) Investments at cost — affiliated	$	92,012,688		$	3,339,093		$	1,907,371
(c) Foreign currency at cost	$	1,145,255		$	—		$	1,312,891
(d) Premiums received	$	175,451		$	138,944		$	386,547
(e) Proceeds from TBA sale commitments	$	—		$	155,376,605		$	164,081,355

See notes to financial statements.

66 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Assets and Liabilities  (unaudited) (continued)

March 31, 2019

	BlackRock Credit Strategies Income Fund		BlackRock GNMA Portfolio		BlackRock U.S. Government Bond Portfolio
NET ASSET VALUE
Institutional
Net assets	$	639,703,997	$	246,261,260	$	183,149,525
Share outstanding(a)		63,434,740		26,566,440		17,768,936
Net asset value	$	10.08	$	9.27	$	10.31
Service
Net assets	$	—	$	7,251,089	$	3,940,184
Share outstanding(a)		—		783,528		382,477
Net asset value	$	—	$	9.25	$	10.30
Investor A
Net assets	$	80,830,828	$	128,583,795	$	351,425,932
Share outstanding(a)		8,016,523		13,813,350		34,017,252
Net asset value	$	10.08	$	9.31	$	10.33
Investor C
Net assets	$	30,108,560	$	32,318,742	$	30,836,933
Share outstanding(a)		2,985,242		3,487,390		2,989,254
Net asset value	$	10.09	$	9.27	$	10.32
Investor C1
Net assets	$	—	$	—	$	12,327,063
Share outstanding(a)		—		—		1,195,128
Net asset value	$	—	$	—	$	10.31
Class K
Net assets	$	48,509,494	$	37,344,007	$	2,077,040
Share outstanding(a)		4,811,088		4,041,988		201,491
Net asset value	$	10.08	$	9.24	$	10.31
Class R
Net assets	$	—	$	—	$	17,074,378
Share outstanding(a)		—		—		1,652,958
Net asset value	$	—	$	—	$	10.33

^(a)  Unlimited number of shares authorized, $0.001 par value.

See notes to financial statements.

FINANCIAL STATEMENTS 67

Statements of Operations  (unaudited)

Six Months Ended March 31, 2019

	BlackRock Credit Strategies Income Fund			BlackRock GNMA Portfolio			BlackRock U.S. Government Bond Portfolio
INVESTMENT INCOME
Dividends — affiliated	$	809,405		$	33,097		$	43,374
Dividends — unaffiliated		314,085			502			2,009
Interest — unaffiliated		16,936,003			9,139,395			10,777,123
Foreign taxes withheld		(4,227	)		—			(9,726	)
Total investment income		18,055,266			9,172,994			10,812,780
EXPENSES
Investment advisory		1,696,017			748,590			1,136,141
Transfer agent — class specific		300,820			276,508			560,930
Service and distribution — class specific		241,124			349,729			698,555
Accounting services		206,004			36,082			55,011
Administration		141,916			93,575			122,762
Registration		72,668			58,911			68,878
Administration — class specific		67,833			44,032			58,259
Professional		57,131			51,590			49,612
Custodian		46,749			18,365			30,671
Board realignment and consolidation		38,034			49,383			67,830
Printing		24,629			19,121			22,799
Trustees and Officer		9,585			9,059			9,866
Offering		—			—			14,407
Miscellaneous		91,304			26,264			37,500
Total expenses excluding interest expense		2,993,814			1,781,209			2,933,221
Interest expense		—			1,459,714			1,807,309
Total expenses		2,993,814			3,240,923			4,740,530
Less:
Fees waived and/or reimbursed by the Manager		(425,661	)		(295,840	)		(470,170	)
Transfer agent fees waived and/or reimbursed — class specific		(163,714	)		(174,412	)		(395,813	)
Administration fees waived — class specific		(67,833	)		(44,032	)		(58,259	)
Total expenses after fees waived and/or reimbursed		2,336,606			2,726,639			3,816,288
Net investment income		15,718,660			6,446,355			6,996,492
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		(20,767	)		—			—
Investments — unaffiliated		(7,933,646	)		509,080			(2,208,869	)
Forward foreign currency exchange contracts		3,286,174			—			106,522
Foreign currency transactions		(93,738	)		—			201,314
Futures contracts		1,823,412			(3,001,059	)		803,757
Options written		2,077,476			246,350			219,132
Swaps		(1,724,182	)		416,843			(260,683	)
		(2,585,271	)		(1,828,786	)		(1,138,827	)
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		199,338			—			—
Investments — unaffiliated		4,556,477			14,678,940			20,615,319
Forward foreign currency exchange contracts		(222,833	)		—			(310,418	)
Foreign currency translations		13,153			—			(21,459	)
Futures contracts		691,712			(1,610,596	)		984,224
Options written		25,723			(232,984	)		(207,780	)
Swaps		(169,307	)		(2,263,190	)		(3,442,136	)
Unfunded floating rate loan interests		(299	)		—			—
		5,093,964			10,572,170			17,617,750
Net realized and unrealized gain		2,508,693			8,743,384			16,478,923
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	18,227,353		$	15,189,739		$	23,475,415

See notes to financial statements.

68 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets

	BlackRock Credit Strategies Income Fund						BlackRock GNMA Portfolio
	Six Months Ended 03/31/19 (unaudited)			Year Ended 09/30/18			Six Months Ended 03/31/19 (unaudited)			Year Ended 09/30/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	15,718,660		$	20,943,910		$	6,446,355		$	12,845,340
Net realized gain (loss)		(2,585,271	)		5,709,706			(1,828,786	)		(203,091	)
Net change in unrealized appreciation (depreciation)		5,093,964			(13,936,497	)		10,572,170			(21,061,983	)
Net increase (decrease) in net assets resulting from operations		18,227,353			12,717,119			15,189,739			(8,419,734	)
DISTRIBUTIONS TO SHAREHOLDERS(a)(b)
Institutional		(15,346,330	)		(16,112,100	)		(4,920,770	)		(10,078,634	)
Service		—			—			(139,765	)		(279,131	)
Investor A		(2,044,951	)		(3,885,278	)		(2,306,728	)		(4,674,749	)
Investor C		(684,588	)		(986,678	)		(572,977	)		(1,369,949	)
Class K		(852,391	)		(199,081	)		(622,853	)		(755,655	)
Decrease in net assets resulting from distributions to shareholders		(18,928,260	)		(21,183,137	)		(8,563,093	)		(17,158,118	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		221,212,527			109,557,535			2,883,751			(116,492,897	)
NET ASSETS(b)
Total increase (decrease) in net assets		220,511,620			101,091,517			9,510,397			(142,070,749	)
Beginning of period		578,641,259			477,549,742			442,248,496			584,319,245
End of period	$	799,152,879		$	578,641,259		$	451,758,893		$	442,248,496

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

^(b) Prior year distribution character information and undistributed (distributed in excess of) of net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information.

See notes to financial statements.

FINANCIAL STATEMENTS 69

Statements of Changes in Net Assets  (continued)

	BlackRock U.S. Government Bond Portfolio
	Six Months Ended 03/31/19 (unaudited)			Year Ended 09/30/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	6,996,492		$	12,440,365
Net realized loss		(1,138,827	)		(8,636,280	)
Net change in unrealized appreciation (depreciation)		17,617,750			(16,066,202	)
Net increase (decrease) in net assets resulting from operations		23,475,415			(12,262,117	)
DISTRIBUTIONS TO SHAREHOLDERS(a)(b)
Institutional		(2,459,645	)		(3,998,385	)
Service		(8,087	)		(41,989	)
Investor A		(4,761,094	)		(8,369,184	)
Investor B1		—			(302	)
Investor C		(311,266	)		(534,817	)
Investor C1		(150,602	)		(307,943	)
Class K		(26,325	)		(17,877	)
Class R		(231,107	)		(389,299	)
Decrease in net assets resulting from distributions to shareholders		(7,948,126	)		(13,659,796	)
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions		(8,320,680	)		(55,274,556	)
NET ASSETS(b)
Total increase (decrease) in net assets		7,206,609			(81,196,469	)
Beginning of period		593,624,446			674,820,915
End of period	$	600,831,055		$	593,624,446

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

^(b)  Prior year distribution character information and distributions in excess of net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information.

See notes to financial statements.

70 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement of Cash Flows  (unaudited)

Six Months Ended March 31, 2019

	BlackRock U.S. Government Bond Portfolio
CASH USED FOR OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	23,475,415
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities:
Proceeds from sales of long-term investments and principal paydowns		2,633,819,104
Purchases of long term investments		(2,654,427,157	)
Net proceeds of short-term securities		6,621,282
Amortization of premium and accretion of discount on investments		(493,200	)
Premiums received from options written		1,072,338
Premiums paid on closing options written		(693,269	)
Net realized (gain) loss on investments and options written		1,989,737
Net unrealized (appreciation) depreciation on investments, options written, forward foreign currency exchange contracts, foreign currency transactions and swaps		(20,135,489	)
(Increase) Decrease in Assets:
Receivables:
Swaps		(18,223	)
Dividends — affiliated		(627	)
Dividends — unaffiliated		(192	)
Interest — unaffiliated		(162,142	)
From the Manager		135,436
Variation margin on futures contracts		(603	)
Variation margin on centrally cleared swaps		(211,858	)
Swap premiums paid		(47,033	)
Prepaid expenses		(28,893	)
Increase (Decrease) in Liabilities:
Payables:
Administration fees		476
Board realignment and consolidation		(134,185	)
Custodian fees		9,241
Interest expense and fees		24,184
Investment advisory fees		16,767
Trustees’ and Officer’s fees		1,322
Other affiliates		(1,349	)
Professional fees		(10,693	)
Service and distribution fees		(5,499	)
Transfer agent fees		61,804
Other accrued expenses		56,975
Variation margin on futures contracts		203,921
Variation margin on centrally cleared swaps		(16,800	)
Swap premiums received		4,545
Net cash used for operating activities		(8,894,665	)
CASH PROVIDED BY FINANCING ACTIVITIES
Cash dividends paid to shareholders		(4,494,290	)
Payments on redemption of capital shares		(124,099,770	)
Proceeds from issuance of capital shares		112,474,693
Net borrowing of reverse repurchase agreements		26,785,141
Net cash provided by financing activities		10,665,774
CASH IMPACT FROM FOREIGN EXCHANGE FLUCTUATIONS
Cash impact from foreign exchange fluctuations		(14,946	)
CASH AND FOREIGN CURRENCY
Net increase in restricted and unrestricted cash and foreign currency		1,756,163
Restricted and unrestricted cash and foreign currency at beginning of period		2,740,277
Restricted and unrestricted cash and foreign currency at end of period	$	4,496,440
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for interest expense	$	1,783,125
NON-CASH FINANCING ACTIVITIES
Capital shares issued in reinvestment of dividends and distributions paid to shareholders	$	3,484,218

FINANCIAL STATEMENTS 71

Statement of Cash Flows  (unaudited) (continued)

Six Months Ended March 31, 2019

	Six Months Ended March 31, 2019		Year Ended September 30, 2018
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AND FOREIGN CURRENCY TO THE STATEMENTS OF ASSETS AND LIABILITIES
Cash	$	181,757	$	147,574
Cash Pledged:
Collateral — TBA commitments		240,000		—
Futures contracts		895,650		710,650
Centrally cleared swaps		1,878,560		291,560
Foreign currency at value		1,300,473		1,590,493
	$	4,496,440	$	2,740,277

See notes to financial statements.

72 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund
	Institutional
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.13		$	10.31		$	10.14		$	9.99		$	10.31		$	10.30
Net investment income(a)		0.23			0.43			0.41			0.43			0.42			0.47
Net realized and unrealized gain (loss)		(0.00	)		(0.18	)		0.20			0.16			(0.28	)		0.02
Net increase from investment operations		0.23			0.25			0.61			0.59			0.14			0.49
Distributions(b)
From net investment income		(0.28	)		(0.43	)		(0.44	)		(0.44	)		(0.45	)		(0.45	)
From net realized gain		—			—			—			—			(0.01	)		(0.03	)
Total distributions		(0.28	)		(0.43	)		(0.44	)		(0.44	)		(0.46	)		(0.48	)
Net asset value, end of period	$	10.08		$	10.13		$	10.31		$	10.14		$	9.99		$	10.31
Total Return(c)
Based on net asset value		2.36	%(d)		2.52	%		6.12	%		6.09	%		1.36	%		4.86	%
Ratios to Average Net Assets(e)
Total expenses(f)		0.81	%(g)		0.83	%		0.90	%		0.80	%		0.80	%		0.88	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.62	%(g)		0.63	%		0.63	%		0.68	%		0.70	%		0.70	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.62	%(g)		0.63	%		0.63	%		0.68	%		0.70	%		0.70	%
Net investment income		4.70	%(g)		4.22	%		4.03	%		4.28	%		4.13	%		4.49	%
Supplemental Data
Net assets, end of period (000)	$	639,704		$	457,518		$	337,106		$	218,738		$	211,705		$	122,035
Portfolio turnover rate		38	%		100	%		126	%		101	%		65	%		65	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.02	%		0.01	%		0.02	%		0.01	%		0.01	%		0.02	%

^(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018			2017			2016			2015		2014
Expense ratios		N/A		0.82	%		0.90	%		0.80	%		N/A		N/A

^(g)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 73

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund (continued)
	Investor A
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.13		$	10.30		$	10.13		$	9.99		$	10.31		$	10.30
Net investment income(a)		0.22			0.40			0.39			0.40			0.40			0.44
Net realized and unrealized gain (loss)		(0.00	)		(0.16	)		0.19			0.16			(0.28	)		0.02
Net increase from investment operations		0.22			0.24			0.58			0.56			0.12			0.46
Distributions(b)
From net investment income		(0.27	)		(0.41	)		(0.41	)		(0.42	)		(0.43	)		(0.42	)
From net realized gain		—			—			—			—			(0.01	)		(0.03	)
Total distributions		(0.27	)		(0.41	)		(0.41	)		(0.42	)		(0.44	)		(0.45	)
Net asset value, end of period	$	10.08		$	10.13		$	10.30		$	10.13		$	9.99		$	10.31
Total Return(c)
Based on net asset value		2.24	%(d)		2.36	%		5.86	%		5.72	%		1.12	%		4.60	%
Ratios to Average Net Assets(e)
Total expenses(f)		1.09	%(g)		1.12	%		1.17	%		1.10	%		1.10	%		1.13	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.87	%(g)		0.88	%		0.88	%		0.93	%		0.95	%		0.95	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.87	%(g)		0.88	%		0.88	%		0.93	%		0.95	%		0.95	%
Net investment income		4.46	%(g)		3.94	%		3.81	%		4.04	%		3.90	%		4.22	%
Supplemental Data
Net assets, end of period (000)	$	80,831		$	75,462		$	109,702		$	120,167		$	108,127		$	87,100
Portfolio turnover rate		38	%		100	%		126	%		101	%		65	%		65	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.02	%		0.01	%		0.02	%		0.01	%		0.01	%		0.20	%

^(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018			2017		2016		2015		2014
Expense ratios		N/A		1.11	%		N/A		N/A		N/A		N/A

^(g)  Annualized.

See notes to financial statements.

74 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund (continued)
	Investor C
	Six Months��Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.13		$	10.31		$	10.14		$	9.99		$	10.31		$	10.30
Net investment income(a)		0.18			0.33			0.31			0.33			0.32			0.36
Net realized and unrealized gain (loss)		0.01			(0.18	)		0.19			0.16			(0.28	)		0.03
Net increase from investment operations		0.19			0.15			0.50			0.49			0.04			0.39
Distributions(b)
From net investment income		(0.23	)		(0.33	)		(0.33	)		(0.34	)		(0.35	)		(0.35	)
From net realized gain		—			—			—			—			(0.01	)		(0.03	)
Total distributions		(0.23	)		(0.33	)		(0.33	)		(0.34	)		(0.36	)		(0.38	)
Net asset value, end of period	$	10.09		$	10.13		$	10.31		$	10.14		$	9.99		$	10.31
Total Return(c)
Based on net asset value		1.96	%(d)		1.50	%		5.07	%		5.04	%		0.36	%		3.82	%
Ratios to Average Net Assets(e)
Total expenses(f)		1.82	%(g)		1.84	%		1.90	%		1.82	%		1.83	%		1.90	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.62	%(g)		1.63	%		1.63	%		1.68	%		1.70	%		1.70	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.62	%(g)		1.63	%		1.63	%		1.68	%		1.70	%		1.70	%
Net investment income		3.71	%(g)		3.21	%		3.06	%		3.28	%		3.15	%		3.49	%
Supplemental Data
Net assets, end of period (000)	$	30,109		$	29,812		$	30,536		$	29,321		$	24,678		$	21,768
Portfolio turnover rate		38	%		100	%		126	%		101	%		65	%		65	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.02	%		0.01	%		0.02	%		0.01	%		0.01	%		0.02	%

^(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018			2017		2016		2015		2014
Expense ratios		N/A		1.83	%		N/A		N/A		N/A		N/A

^(g)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 75

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund (continued)
	Class K
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,						Period from 08/01/16 (a) to 09/30/16
				2018			2017
Net asset value, beginning of period	$	10.13		$	10.31		$	10.14		$	10.08
Net investment income(b)		0.23			0.44			0.42			0.07
Net realized and unrealized gain (loss)		(0.00	)		(0.18	)		0.19			0.06
Net increase from investment operations		0.23			0.26			0.61			0.13
Distributions from net investment income(c)		(0.28	)		(0.44	)		(0.44	)		(0.07	)
Net asset value, end of period	$	10.08		$	10.13		$	10.31		$	10.14
Total Return(d)
Based on net asset value		2.39	%(e)		2.57	%		6.17	%		1.32	%(e)
Ratios to Average Net Assets(f)
Total expenses		0.72	%(g)		0.74	%(h)		0.84	%		0.76	%(g)
Total expenses after fees waived and/or reimbursed and paid indirectly		0.57	%(g)		0.57	%		0.58	%		0.57	%(g)
Net investment income		4.71	%(g)		4.37	%		4.11	%		4.36	%(g)
Supplemental Data
Net assets, end of period (000)	$	48,509		$	15,849		$	206		$	201
Portfolio turnover rate		38	%		100	%		126	%		101	%(i)

^(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 03/31/19 (unaudited)			For the Year Ended September 30,						Period from 08/01/16 (a) to 09/30/16
				2018			2017
Investments in underlying funds		0.02	%		0.01	%		0.02	%		0.01	%

^(g)  Annualized.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

⁽ⁱ⁾  Portfolio turnover is representative of the Fund for the entire year.

See notes to financial statements.

76 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio
	Institutional
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.13		$	9.59		$	9.89		$	9.83		$	9.83		$	9.73
Net investment income(a)		0.14			0.25			0.19			0.19			0.15			0.15
Net realized and unrealized gain (loss)		0.18			(0.38	)		(0.19	)		0.15			0.09			0.20
Net increase (decrease) from investment operations		0.32			(0.13	)		—			0.34			0.24			0.35
Distributions(b)
From net investment income		(0.18	)		(0.33	)		(0.30	)		(0.28	)		(0.24	)		(0.24	)
From return of capital		—			—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)		(0.01	)
Total distributions		(0.18	)		(0.33	)		(0.30	)		(0.28	)		(0.24	)		(0.25	)
Net asset value, end of period	$	9.27		$	9.13		$	9.59		$	9.89		$	9.83		$	9.83
Total Return(d)
Based on net asset value		3.59	%(e)		(1.36	)%		0.01	%		3.54	%		2.45	%		3.64	%
Ratios to Average Net Assets(f)
Total expenses		1.30	%(g)		1.06	%		0.74	%		0.66	%		0.82	%		0.83	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.08	%(g)		0.84	%		0.52	%		0.57	%		0.55	%		0.55	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.42	%(g)		0.42	%		0.43	%		0.55	%		0.55	%		0.55	%
Net investment income		3.08	%(g)		2.69	%		1.93	%		1.88	%		1.49	%		1.57	%
Supplemental Data
Net assets, end of period (000)	$	246,261		$	249,030		$	316,891		$	457,730		$	420,167		$	390,925
Portfolio turnover rate(h)		688	%		1,450	%		1,198	%		1,139	%		1,164	%		1,258	%

^(a)  Based on average shares outstanding.

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

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

^(d)  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 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%		0.04	%

^(g)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		416	%		823	%		423	%		502	%		429	%		401	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 77

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Service
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.12		$	9.57		$	9.87		$	9.82		$	9.82		$	9.71
Net investment income(a)		0.13			0.22			0.16			0.16			0.11			0.12
Net realized and unrealized gain (loss)		0.17			(0.36	)		(0.19	)		0.14			0.09			0.21
Net increase (decrease) from investment operations		0.30			(0.14	)		(0.03	)		0.30			0.20			0.33
Distributions(b)
From net investment income		(0.17	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)		(0.21	)
From return of capital		—			—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)		(0.01	)
Total distributions		(0.17	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)		(0.22	)
Net asset value, end of period	$	9.25		$	9.12		$	9.57		$	9.87		$	9.82		$	9.82
Total Return(d)
Based on net asset value		3.35	%(e)		(1.51	)%		(0.25	)%		3.08	%		2.09	%		3.39	%
Ratios to Average Net Assets(f)
Total expenses		1.58	%(g)		1.32	%		1.05	%		0.98	%(h)		1.16	%		1.13	%(h)
Total expenses after fees waived and/or reimbursed and paid indirectly		1.33	%(g)		1.09	%		0.79	%		0.92	%		0.90	%		0.90	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.67	%(g)		0.67	%		0.68	%		0.90	%		0.90	%		0.90	%
Net investment income		2.84	%(g)		2.41	%		1.68	%		1.60	%		1.15	%		1.21	%
Supplemental Data
Net assets, end of period (000)	$	7,251		$	7,592		$	9,347		$	12,129		$	28,828		$	52,272
Portfolio turnover rate(i)		688	%		1,450	%		1,198	%		1,139	%		1,164	%		1,258	%

^(a)  Based on average shares outstanding.

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

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

^(d)  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 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%		0.04	%

^(g)  Annualized.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		416	%		823	%		423	%		502	%		429	%		401	%

See notes to financial statements.

78 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Investor A
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.17		$	9.63		$	9.93		$	9.87		$	9.87		$	9.77
Net investment income(a)		0.13			0.23			0.16			0.15			0.11			0.12
Net realized and unrealized gain (loss)		0.18			(0.38	)		(0.19	)		0.16			0.09			0.20
Net increase (decrease) from investment operations		0.31			(0.15	)		(0.03	)		0.31			0.20			0.32
Distributions(b)
From net investment income		(0.17	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)		(0.21	)
From return of capital		—			—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)		(0.01	)
Total distributions		(0.17	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)		(0.22	)
Net asset value, end of period	$	9.31		$	9.17		$	9.63		$	9.93		$	9.87		$	9.87
Total Return(d)
Based on net asset value		3.45	%(e)		(1.58	)%		(0.23	)%		3.19	%		2.08	%		3.26	%
Ratios to Average Net Assets(f)
Total expenses		1.59	%(g)		1.33	%		1.01	%(h)		0.92	%		1.07	%		1.09	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.33	%(g)		1.09	%		0.78	%		0.91	%		0.91	%		0.92	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.67	%(g)		0.67	%		0.68	%		0.89	%		0.91	%		0.92	%
Net investment income		2.84	%(g)		2.44	%		1.68	%		1.51	%		1.14	%		1.24	%
Supplemental Data
Net assets, end of period (000)	$	128,584		$	120,582		$	172,685		$	256,577		$	186,427		$	159,325
Portfolio turnover rate(i)		688	%		1,450	%		1,198	%		1,139	%		1,164	%		1,258	%

^(a)  Based on average shares outstanding.

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

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

^(d)  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 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%		0.04	%

^(g)  Annualized.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		416	%		823	%		423	%		502	%		429	%		401	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 79

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Investor C
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.13		$	9.58		$	9.88		$	9.83		$	9.83		$	9.72
Net investment income(a)		0.10			0.16			0.09			0.08			0.04			0.05
Net realized and unrealized gain (loss)		0.18			(0.37	)		(0.19	)		0.14			0.09			0.20
Net increase (decrease) from investment operations		0.28			(0.21	)		(0.10	)		0.22			0.13			0.25
Distributions(b)
From net investment income		(0.14	)		(0.24	)		(0.20	)		(0.17	)		(0.13	)		(0.13	)
From return of capital		—			—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)		(0.01	)
Total distributions		(0.14	)		(0.24	)		(0.20	)		(0.17	)		(0.13	)		(0.14	)
Net asset value, end of period	$	9.27		$	9.13		$	9.58		$	9.88		$	9.83		$	9.83
Total Return(d)
Based on net asset value		3.08	%(e)		(2.24	)%		(0.99	)%		2.31	%		1.32	%		2.61	%
Ratios to Average Net Assets(f)
Total expenses		2.32	%(g)		2.07	%		1.76	%(h)		1.68	%		1.82	%		1.83	%
Total expenses after fees waived and/or reimbursed and paid indirectly		2.08	%(g)		1.84	%		1.53	%		1.67	%		1.66	%		1.66	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.42	%(g)		1.42	%		1.43	%		1.65	%		1.66	%		1.66	%
Net investment income		2.09	%(g)		1.70	%		0.93	%		0.79	%		0.40	%		0.50	%
Supplemental Data
Net assets, end of period (000)	$	32,319		$	44,241		$	64,370		$	96,578		$	100,335		$	119,398
Portfolio turnover rate(i)		688	%		1,450	%		1,198	%		1,139	%		1,164	%		1,258	%

^(a)  Based on average shares outstanding.

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

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

^(d)  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 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%		0.04	%

^(g)  Annualized.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		416	%		823	%		423	%		502	%		429	%		401	%

See notes to financial statements.

80 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Class K
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.10		$	9.55		$	9.85		$	9.80		$	9.79		$	9.69
Net investment income(a)		0.14			0.25			0.19			0.19			0.15			0.15
Net realized and unrealized gain (loss)		0.19			(0.37	)		(0.19	)		0.15			0.10			0.20
Net increase (decrease) from investment operations		0.33			(0.12	)		—			0.34			0.25			0.35
Distributions(b)
From net investment income		(0.19	)		(0.33	)		(0.30	)		(0.29	)		(0.24	)		(0.24	)
From return of capital		—			—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)		(0.01	)
Total distributions		(0.19	)		(0.33	)		(0.30	)		(0.29	)		(0.24	)		(0.25	)
Net asset value, end of period	$	9.24		$	9.10		$	9.55		$	9.85		$	9.80		$	9.79
Total Return(d)
Based on net asset value		3.62	%(e)		(1.22	)%		0.04	%		3.47	%		2.58	%		3.67	%
Ratios to Average Net Assets(f)
Total expenses		1.18	%(g)		0.94	%		0.66	%		0.56	%		0.70	%		0.79	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.03	%(g)		0.79	%		0.50	%		0.54	%		0.52	%		0.52	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.37	%(g)		0.37	%		0.38	%		0.52	%		0.52	%		0.52	%
Net investment income		3.12	%(g)		2.73	%		2.00	%		1.90	%		1.49	%		1.58	%
Supplemental Data
Net assets, end of period (000)	$	37,344		$	20,802		$	21,025		$	19,209		$	17,253		$	3,780
Portfolio turnover rate(h)		688	%		1,450	%		1,198	%		1,139	%		1,164	%		1,258	%

^(a)  Based on average shares outstanding.

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

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

^(d)  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 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%		0.04	%

^(g)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		416	%		823	%		423	%		502	%		429	%		401	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 81

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio
	Institutional
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.03		$	10.45		$	10.76		$	10.64		$	10.59		$	10.52
Net investment income(a)		0.13			0.23			0.20			0.18			0.18			0.19
Net realized and unrealized gain (loss)		0.30			(0.40	)		(0.26	)		0.20			0.12			0.16
Net increase (decrease) from investment operations		0.43			(0.17	)		(0.06	)		0.38			0.30			0.35
Distributions(b)
From net investment income		(0.15	)		(0.25	)		(0.24	)		(0.26	)		(0.25	)		(0.28	)
From return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.15	)		(0.25	)		(0.25	)		(0.26	)		(0.25	)		(0.28	)
Net asset value, end of period	$	10.31		$	10.03		$	10.45		$	10.76		$	10.64		$	10.59
Total Return(c)
Based on net asset value		4.32	%(d)		(1.68	)%		(0.55	)%		3.67	%		2.80	%		3.37	%
Ratios to Average Net Assets
Total expenses		1.33	%(e)		1.04	%		0.90	%		0.92	%		0.92	%		0.90	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.07	%(e)		0.76	%		0.58	%		0.73	%		0.65	%		0.64	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.45	%(e)		0.45	%		0.46	%		0.62	%		0.62	%		0.62	%
Net investment income		2.64	%(e)		2.21	%		1.81	%		1.70	%		1.71	%		1.78	%
Supplemental Data
Net assets, end of period (000)	$	183,150		$	166,465		$	165,709		$	156,865		$	152,632		$	154,168
Portfolio turnover rate(f)		397	%		892	%		982	%		929	%		1,090	%		948	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		237	%		590	%		658	%		619	%		741	%		618	%

See notes to financial statements.

82 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Service
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.03		$	10.45		$	10.75		$	10.63		$	10.58		$	10.51
Net investment income(a)		0.11			0.20			0.17			0.16			0.16			0.17
Net realized and unrealized gain (loss)		0.30			(0.40	)		(0.25	)		0.20			0.11			0.16
Net increase (decrease) from investment operations		0.41			(0.20	)		(0.08	)		0.36			0.27			0.33
Distributions(b)
From net investment income		(0.14	)		(0.22	)		(0.21	)		(0.24	)		(0.22	)		(0.26	)
From return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.14	)		(0.22	)		(0.22	)		(0.24	)		(0.22	)		(0.26	)
Net asset value, end of period	$	10.30		$	10.03		$	10.45		$	10.75		$	10.63		$	10.58
Total Return(c)
Based on net asset value		4.09	%(d)		(1.93	)%		(0.70	)%		3.47	%		2.61	%		3.18	%
Ratios to Average Net Assets
Total expenses		1.84	%(e)		1.28	%		1.18	%		1.21	%		1.14	%		1.12	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.32	%(e)		1.01	%		0.82	%		0.92	%		0.84	%		0.83	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.70	%(e)		0.70	%		0.70	%		0.81	%		0.81	%		0.81	%
Net investment income		2.23	%(e)		1.96	%		1.57	%		1.51	%		1.53	%		1.59	%
Supplemental Data
Net assets, end of period (000)	$	3,940		$	541		$	2,039		$	4,452		$	3,575		$	3,873
Portfolio turnover rate(f)		397	%		892	%		982	%		929	%		1,090	%		948	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		237	%		590	%		658	%		619	%		741	%		618	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 83

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Investor A
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.06		$	10.47		$	10.79		$	10.66		$	10.61		$	10.54
Net investment income(a)		0.12			0.20			0.15			0.15			0.15			0.16
Net realized and unrealized gain (loss)		0.29			(0.39	)		(0.25	)		0.21			0.12			0.16
Net increase (decrease) from investment operations		0.41			(0.19	)		(0.10	)		0.36			0.27			0.32
Distributions(b)
From net investment income		(0.14	)		(0.22	)		(0.21	)		(0.23	)		(0.22	)		(0.25	)
From return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.14	)		(0.22	)		(0.22	)		(0.23	)		(0.22	)		(0.25	)
Net asset value, end of period	$	10.33		$	10.06		$	10.47		$	10.79		$	10.66		$	10.61
Total Return(c)
Based on net asset value		4.08	%(d)		(1.82	)%		(0.88	)%		3.42	%		2.52	%		3.08	%
Ratios to Average Net Assets
Total expenses		1.60	%(e)		1.31	%		1.16	%(f)		1.19	%		1.10	%		1.10	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.32	%(e)		1.01	%		0.83	%		1.06	%		0.94	%		0.92	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.70	%(e)		0.70	%		0.71	%		0.95	%		0.90	%		0.90	%
Net investment income		2.39	%(e)		1.96	%		1.56	%		1.40	%		1.43	%		1.50	%
Supplemental Data
Net assets, end of period (000)	$	351,426		$	353,770		$	422,775		$	463,530		$	517,485		$	520,869
Portfolio turnover rate(g)		397	%		892	%		982	%		929	%		1,090	%		948	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Annualized.

^(f)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		237	%		590	%		658	%		619	%		741	%		618	%

See notes to financial statements.

84 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Investor C
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.04		$	10.46		$	10.77		$	10.65		$	10.60		$	10.53
Net investment income(a)		0.08			0.12			0.07			0.07			0.07			0.07
Net realized and unrealized gain (loss)		0.30			(0.40	)		(0.24	)		0.20			0.11			0.16
Net increase (decrease) from investment operations		0.38			(0.28	)		(0.17	)		0.27			0.18			0.23
Distributions(b)
From net investment income		(0.10	)		(0.14	)		(0.13	)		(0.15	)		(0.13	)		(0.16	)
From return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.10	)		(0.14	)		(0.14	)		(0.15	)		(0.13	)		(0.16	)
Net asset value, end of period	$	10.32		$	10.04		$	10.46		$	10.77		$	10.65		$	10.60
Total Return(c)
Based on net asset value		3.80	%(d)		(2.66	)%		(1.54	)%		2.53	%		1.68	%		2.25	%
Ratios to Average Net Assets
Total expenses		2.44	%(e)		2.14	%		1.94	%		1.97	%		1.91	%		1.92	%(f)
Total expenses after fees waived and/or reimbursed and paid indirectly		2.07	%(e)		1.76	%		1.58	%		1.83	%		1.75	%		1.74	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.45	%(e)		1.45	%		1.46	%		1.72	%		1.72	%		1.72	%
Net investment income		1.64	%(e)		1.21	%		0.80	%		0.62	%		0.62	%		0.69	%
Supplemental Data
Net assets, end of period (000)	$	30,837		$	35,014		$	38,574		$	51,545		$	49,408		$	54,894
Portfolio turnover rate(g)		397	%		892	%		982	%		929	%		1,090	%		948	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Annualized.

^(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the year ended September 30, 2014, the expense ratio would have been 1.91%.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		237	%		590	%		658	%		619	%		741	%		618	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 85

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Investor C1
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.04		$	10.46		$	10.77		$	10.64		$	10.60		$	10.53
Net investment income(a)		0.09			0.15			0.08			0.09			0.09			0.09
Net realized and unrealized gain (loss)		0.29			(0.41	)		(0.23	)		0.21			0.10			0.16
Net increase (decrease) from investment operations		0.38			(0.26	)		(0.15	)		0.30			0.19			0.25
Distributions(b)
From net investment income		(0.11	)		(0.16	)		(0.15	)		(0.17	)		(0.15	)		(0.18	)
From return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.11	)		(0.16	)		(0.16	)		(0.17	)		(0.15	)		(0.18	)
Net asset value, end of period	$	10.31		$	10.04		$	10.46		$	10.77		$	10.64		$	10.60
Total Return(c)
Based on net asset value		3.80	%(d)		(2.46	)%		(1.34	)%		2.82	%		1.78	%		2.44	%
Ratios to Average Net Assets
Total expenses		2.39	%(e)		2.04	%		1.80	%		1.83	%		1.74	%		1.75	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.87	%(e)		1.56	%		1.37	%		1.64	%		1.56	%		1.55	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.25	%(e)		1.25	%		1.26	%		1.53	%		1.53	%		1.53	%
Net investment income		1.83	%(e)		1.42	%		1.00	%		0.83	%		0.81	%		0.87	%
Supplemental Data
Net assets, end of period (000)	$	12,327		$	16,656		$	23,431		$	54,029		$	68,972		$	81,936
Portfolio turnover rate(f)		397	%		892	%		982	%		929	%		1,090	%		948	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		237	%		590	%		658	%		619	%		741	%		618	%

See notes to financial statements.

86 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Class K
	Six Months Ended 03/31/19 (unaudited)			Period from 01/25/18 (a) to 09/30/18
Net asset value, beginning of period	$	10.04		$	10.27
Net investment income(b)		0.14			0.14
Net realized and unrealized gain (loss)		0.28			(0.20	)
Net increase (decrease) from investment operations		0.42			(0.06	)
Distributions from net investment income(c)		(0.15	)		(0.17	)
Net asset value, end of period	$	10.31		$	10.04
Total Return(d)
Based on net asset value		4.24	%(e)		(0.60	)%(e)
Ratios to Average Net Assets
Total expenses		1.20	%(f)		1.03	%(f)(g)
Total expenses after fees waived and/or reimbursed and paid indirectly		1.02	%(f)		0.86	%(f)
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.40	%(f)		0.40	%(f)
Net investment income		2.70	%(f)		2.03	%(f)
Supplemental Data
Net assets, end of period (000)	$	2,077		$	1,517
Portfolio turnover rate(h)		397	%		892	%(i)

^(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)  Annualized.

^(g)  Offering and Board realignment and consolidation costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.04%.

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

	Six Months Ended 03/31/19 (unaudited)			Period from 01/25/18 (a) to 09/30/18
Portfolio turnover rate (excluding MDRs)		237	%		590	%

⁽ⁱ⁾  Portfolio turnover rate is representative of the Portfolio for the entire year.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 87

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Class R
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	10.06		$	10.47		$	10.78		$	10.66		$	10.61		$	10.54
Net investment income(a)		0.11			0.18			0.13			0.12			0.12			0.13
Net realized and unrealized gain (loss)		0.28			(0.40	)		(0.24	)		0.20			0.11			0.16
Net increase (decrease) from investment operations		0.39			(0.22	)		(0.11	)		0.32			0.23			0.29
Distributions(b)
From net investment income		(0.12	)		(0.19	)		(0.19	)		(0.20	)		(0.18	)		(0.22	)
From return of capital		—			—			(0.01	)		—			—			—
Total distributions		(0.12	)		(0.19	)		(0.20	)		(0.20	)		(0.18	)		(0.22	)
Net asset value, end of period	$	10.33		$	10.06		$	10.47		$	10.78		$	10.66		$	10.61
Total Return(c)
Based on net asset value		3.95	%(d)		(2.07	)%		(1.04	)%		3.06	%		2.20	%		2.76	%
Ratios to Average Net Assets
Total expenses		2.42	%(e)		1.64	%		1.47	%		1.49	%		1.41	%		1.42	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.57	%(e)		1.26	%		1.08	%		1.32	%		1.24	%		1.23	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.95	%(e)		0.95	%		0.96	%		1.21	%		1.21	%		1.21	%
Net investment income		2.14	%(e)		1.72	%		1.30	%		1.12	%		1.13	%		1.19	%
Supplemental Data
Net assets, end of period (000)	$	17,074		$	19,660		$	22,215		$	26,247		$	21,940		$	23,967
Portfolio turnover rate(f)		397	%		892	%		982	%		929	%		1,090	%		948	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		237	%		590	%		658	%		619	%		741	%		618	%

See notes to financial statements.

88 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited)

1. ORGANIZATION

BlackRock Funds V (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Massachusetts business trust. The following, each of which is a series of the Trust, are referred to herein collectively as the “Funds” or individually as a “Fund”:

Fund Name	Herein Referred To As	Diversification Classification
BlackRock Credit Strategies Income Fund	Credit Strategies Income	Diversified
BlackRock GNMA Portfolio	GNMA	Diversified
BlackRock U.S. Government Bond Portfolio	U.S. Government Bond	Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional, Service and Class K Shares are sold only to certain eligible investors. Class R Shares are available only to certain employer-sponsored retirement plans. Investor A and Investor C Shares are generally available through financial intermediaries. Investor C1 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans. Effective November 8, 2018, each Fund adopted an automatic conversion feature whereby Investor C and, if applicable, Investor C1 Shares held for approximately ten years will be automatically converted into Investor A Shares, and, thereafter, investors will be subject to lower ongoing fees. 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 distribution and service plan).

Share Class	Initial Sales Charge	CDSC			Conversion Privilege
Institutional, Service, Class K and Class R Shares	No		No		None
Investor A Shares	Yes		No	(a)	None
Investor C Shares	No		Yes		To Investor A Shares after approximately 10 years
Investor C1 Shares	No		No	(b)	To Investor A Shares after approximately 10 years

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

^(b)  A CDSC of 1.00% is assessed on certain redemptions of Investor C1 Shares made within one year after purchase. The CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders.

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

Reorganization: The Board of Trustees of the Trust (the “Board”) approved an Agreement and Plan of Reorganization with respect to each of the following Target Funds (each a “Target Fund”), pursuant to which each Target Fund reorganized into a newly created series (each an “Acquiring Fund”) of BlackRock Funds V, a newly organized Massachusetts business trust. These reorganizations (the “Reorganizations”) closed on September 17, 2018 and were not subject to approval by shareholders of the Target Funds.

Target Fund	Target Fund’s Registrant	Acquiring Fund	Acquiring Fund’s Registrant
BlackRock Credit Strategies Income Fund	BlackRock Funds II	BlackRock Credit Strategies Income Fund	BlackRock Funds V
BlackRock GNMA Portfolio	BlackRock Funds II	BlackRock GNMA Portfolio	BlackRock Funds V
BlackRock U.S. Government Bond Portfolio	BlackRock Funds II	BlackRock U.S. Government Bond Portfolio	BlackRock Funds V

The Reorganizations were effected in connection with the reconfiguration of the boards of directors/trustees of certain BlackRock-advised funds.

Each Acquiring Fund had the same investment objective, strategies and policies, investment adviser,sub-adviser (if applicable), portfolio management team and service providers as the corresponding Target Fund as of the date of the Reorganizations. Each Target Fund is the performance and accounting survivor of its Reorganization, meaning that the corresponding Acquiring Fund assumed the performance and financial history of the Target Fund upon completion of the Reorganization. In addition, each Acquiring Fund is subject to the same contractual arrangements, including the same contractual fees and expenses, as those of the corresponding Target Fund as of the date of the Reorganization. The Reorganizations weretax-free, meaning that each Target Fund’s shareholders became shareholders of the corresponding Acquiring Fund without realizing any gain or loss for federal income tax purposes.

As a result, each Acquiring Fund acquired all of the assets and assumed all of the liabilities of the corresponding Target Fund in exchange for an equal aggregate value of newly-issued shares of its Acquiring Fund. Each shareholder of a Target Fund received shares of the corresponding Acquiring Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s Target Fund shares, as determined at the close of business on September 14, 2018.

The Reorganizations were accomplished by atax-free exchange of shares of each Acquiring Fund in the following amounts and at the following conversion ratio:

Target Fund	Shares Prior to Reorganization		Conversion Ratio		Shares Post- Reorganization
BlackRock Credit Strategies Income Fund		56,085,647		1		56,085,647
BlackRock GNMA Portfolio		48,392,088		1		48,392,088
BlackRock U.S. Government Bond Portfolio		59,490,853		1		59,490,853

NOTESTO FINANCIAL STATEMENTS 89

Notes to Financial Statements  (unaudited) (continued)

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

Prior to the Reorganizations, the Acquiring Funds had not yet commenced operations and had no assets or liabilities. Each Target Fund’s net assets, fair value and cost of investments and derivative financial instruments prior to the Reorganizations were as follows:

Target Fund	Net Assets		Fair Value of Investments		Cost of Investments
BlackRock Credit Strategies Income Fund	$	567,676,177	$	586,653,670	$	591,374,381
BlackRock GNMA Portfolio		443,884,784		533,508,055		549,274,608
BlackRock U.S. Government Bond Portfolio		599,738,420		547,136,834		564,170,037

Prior to the Reorganizations’ effective date, each Target Fund began to incur expenses in connection with the realignment and consolidation of the boards of directors/trustees of certain BlackRock-advised funds. These expenses and liabilities have been assumed by each respective Acquiring Fund. The Manager has voluntarily agreed to reimburse certain Acquiring Funds for all or a portion of such expenses, which amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Funds are informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation:Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

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

Distributions:Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on theex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP. The portion of distributions that exceeds a Fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute anon-taxable return of capital.

Deferred Compensation Plan:Under the Deferred Compensation Plan (the “Plan”) approved by the Trust’s Board effective January 1, 2019, the independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

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

90 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Offering Costs:Offering costs are amortized over a12-month period beginning with the commencement of operations of a class of shares.

Recent Accounting Standards:In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance to the Funds.

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management continues to evaluate the impact of this guidance to the Funds.

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

Other:Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. 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 Funds and other shared expenses prorated to the Funds are allocated daily to each class based on their relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies:The Funds’ 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 Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each 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 Funds’ net assets. Each business day, the Funds use a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-tradedover-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

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

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

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

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

NOTESTO FINANCIAL STATEMENTS 91

Notes to Financial Statements  (unaudited) (continued)

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

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

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

The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of each Fund’s pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis. As a result of the inherent uncertainty in valuation of these investments, the fair values may differ from the values that would have been used had an active market existed.

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 a Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

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

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

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each 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

92 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Private Companies. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/ornon-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. 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.

As of March 31, 2019, certain investments of Credit Strategies Income were valued using NAV per share or its equivalent as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

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

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

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

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

Inflation-Indexed Bonds:Inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation rises or falls, the principal value of inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Any upward or downward adjustment in the principal amount of an inflation-indexed bond will be included as interest income in the Statements 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.

NOTESTO FINANCIAL STATEMENTS 93

Notes to Financial Statements  (unaudited) (continued)

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

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

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

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

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

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

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

In connection with floating rate loan interests, certain funds may also enter into unfunded floating rate loan interests (“commitments”). In connection with these commitments, a fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statements of Operations, is recognized ratably over the commitment period. Unfunded floating rate loan interests aremarked-to-market daily, and any unrealized appreciation (depreciation) is included in the Statements of Assets and Liabilities and Statements of Operations. As of period end, Credit Strategies Income had the following unfunded floating rate loan interests:

Borrower	Par		Commitment Amount		Value		Unrealized Depreciation
Dentalcorp Perfect Smile ULC, Delayed Draw Term Loan	$	8,230	$	8,230	$	8,014	$	(216	)

Forward Commitments and When-Issued Delayed Delivery Securities: Certain funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A fund may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the

94 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

settlement date. Since the value of securities purchased may fluctuate prior to settlement, a fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

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

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

Mortgage Dollar Roll Transactions: Certain funds may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (i.e., same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, a fund is not entitled to receive interest and principal payments on the securities sold. Mortgage dollar roll transactions are treated as purchases and sales and 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.

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

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

For the six months ended March 31, 2019, the average amount of reverse repurchase agreements and the daily weighted average interest rate for the Funds were as follows:

	GNMA			U.S. Government Bond
Average Borrowings	$	116,948,221		$	146,072,426
Daily Weighted Average Interest Rate		2.49	%		2.44	%

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

NOTESTO FINANCIAL STATEMENTS 95

Notes to Financial Statements  (unaudited) (continued)

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

Counterparty	Reverse Repurchase Agreements			Fair Value of Non-cash Collateral Pledged  Including Accrued Interest (a)		Cash Collateral (Received)/ Pledged  (a)		Net Amount
GNMA
Citigroup Global Markets, Inc.	$	(17,203,299	)	$	17,203,299	$	—	$	—
Royal Bank of Canada		(81,730,730	)		81,730,730		—		—
	$	(98,934,029	)	$	98,934,029	$	—	$	—

^(a)  Net collateral, including accrued interest, with a value of $102,880,447 has been pledged/received in connection with open reverse repurchase agreements. Excess of net collateral pledged to the individual counterparty is not shown for financial reporting purposes.

Counterparty	Reverse Repurchase Agreements			Fair Value of Non-cash Collateral Pledged  Including Accrued Interest (a)		Cash Collateral (Received)/ Pledged  (a)		Net Amount (b)
U.S. Government Bond
Barclays Capital, Inc.	$	(26,369,690	)	$	26,362,787	$	—	$	(6,903	)
Deutsche Bank Securities, Inc.		(23,870,885	)		23,849,979		—		(20,906	)
Merrill Lynch, Pierce, Fenner & Smith Inc.		(111,129,504	)		111,028,222		—		(101,282	)
	$	(161,370,079	)	$	161,240,988	$	—	$	(129,091	)

^(a)  Net collateral, including accrued interest, with a value of $161,240,988 has been pledged/received in connection with open reverse repurchase agreements. Excess of net collateral pledged to the individual counterparty is not shown for financial reporting purposes.

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

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

5. DERIVATIVE FINANCIAL INSTRUMENTS

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

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

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

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

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

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

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

96 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Options: Certain Funds purchase and write call and put options to increase or decrease their exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.

A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.

Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value – unaffiliated and options written at value, respectively, in the Statements of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statements of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statements of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Funds write a call option, such option is typically “covered,” meaning that they hold the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statements of Assets and Liabilities.

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

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

In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that they may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Funds purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

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

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

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Funds’ counterparty on the swap agreement becomes the CCP. The Funds are required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statements of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statements 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 Funds may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Funds will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Funds will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

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

NOTESTO FINANCIAL STATEMENTS 97

Notes to Financial Statements  (unaudited) (continued)

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

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

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

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

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

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

Master Netting Arrangements: In order to define their contractual rights and to secure rights that will help them mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their counterparties. An ISDA Master Agreement is a bilateral agreement between each 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, each Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

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

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

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

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

	Credit Strategies Income
Average Daily Net Assets	Investment Advisory Fee
First $1 Billion		0.500	%
$1 Billion — $2 Billion		0.450
$2 Billion — $3 Billion		0.425
Greater than $3 Billion		0.400

98 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

	GNMA			U.S. Government Bond
Average Daily Net Assets	Investment Advisory Fee			Investment Advisory Fee
First $1 Billion		0.340	%		0.390	%
$1 Billion — $3 Billion		0.320			0.370
$3 Billion — $5 Billion		0.310			0.350
$5 Billion — $10 Billion		0.300			0.340
Greater than $10 Billion		0.280			0.330

With respect to Credit Strategies Income, the Manager entered into separatesub-advisory agreements with BlackRock International Limited (“BIL”) and BlackRock (Singapore) Limited (“BRS”), each an affiliate of the Manager. The Manager pays BIL and BRS for services each provides for that portion of the Fund for which BIL and BRS, as applicable, acts assub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by Credit Strategies Income to the Manager.

Service and Distribution Fees: The Trust, on behalf of the Funds, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule12b-1 under the 1940 Act, each 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 each Fund as follows:

	Service			Investor A			Investor C			Investor C1			Class R
Service Fee		0.25	%		0.25	%		0.25	%		0.25	%		0.25	%
Distribution Fee		—			—			0.75			0.55			0.25

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Funds. 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 March 31, 2019, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

	Service		Investor A		Investor C		Investor C1		Class R		Total
Credit Strategies Income	$	—	$	94,371	$	146,753	$	—	$	—	$	241,124
GNMA		9,211		152,303		188,215		—		—		349,729
U.S. Government Bond		747		437,501		158,195		55,304		46,808		698,555

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

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

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

For the six months ended March 31, 2019, the following table shows the class specific administration fees borne directly by each share class of each Fund:

	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	54,312	$	—	$	7,549	$	2,935	$	—	$	3,037	$	—	$	67,833
GNMA		24,336		737		12,183		3,765		—		3,011		—		44,032
U.S. Government Bond		16,609		60		34,997		3,164		1,382		175		1,872		58,259

Transfer Agent:Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds withsub-accounting, recordkeeping,sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the six months ended March 31, 2019, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

	Institutional		Service		Investor A		Total
GNMA	$	6,606	$	1,047	$	627	$	8,280
U.S. Government Bond		49,733		326		1,377		51,436

NOTESTO FINANCIAL STATEMENTS 99

Notes to Financial Statements  (unaudited) (continued)

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the six months ended March 31, 2019, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	386	$	—	$	506	$	346	$	—	$	1,985	$	—	$	3,223
GNMA		9,751		19		1,868		1,108		—		58		—		12,804
U.S. Government Bond		494		9		15,501		830		93		—		65		16,992

For the six months ended March 31, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:

	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	239,768	$	—	$	43,708	$	14,571	$	—	$	2,773	$	—	$	300,820
GNMA		146,237		5,657		96,855		27,378		—		381		—		276,508
U.S. Government Bond		121,861		1,290		300,231		39,958		28,182		136		69,272		560,930

Other Fees: For the six months ended March 31, 2019, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

Credit Strategies Income	$	9,710
GNMA		7,743
U.S. Government Bond		850

For the six months ended March 31, 2019, affiliates received CDSCs as follows:

	Investor A		Investor C
Credit Strategies Income	$	53	$	2,338
GNMA		48		309
U.S. Government Bond		25		1,848

Expense Limitations, Waivers, Reimbursements, and Recoupments:With respect to each Fund, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended March 31, 2019, the amounts waived were as follows:

Credit Strategies Income	$	17,245
GNMA		1,105
U.S. Government Bond		1,094

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through January 31, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of a Fund. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended March 31, 2019, Credit Strategies Income waived $20,679 in investment advisory fees pursuant to this arrangement.

The Funds have incurred expenses in connection with the realignment and consolidation of the boards of directors/trustees of certain BlackRock-advised funds. The Manager has voluntarily agreed to reimburse certain Funds for all or a portion of such expenses, which amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended March 31, 2019, the amounts reimbursed were as follows:

Credit Strategies Income	$	38,034
GNMA		49,383
U.S. Government Bond		67,830

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

	Institutional			Service			Investor A			Investor C			Investor C1			Class K			Class R
Credit Strategies Income		0.62	%		N/A			0.87	%		1.62	%		N/A			0.57	%		N/A
GNMA		0.42			0.67	%		0.67			1.42			N/A			0.37			1.17	%(a)
U.S. Government Bond		0.45			0.70			0.70			1.45			1.25	%		0.40			0.95

^(a)  Share class currently active, but no assets in share class.

100 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

The Manager has agreed not to reduce or discontinue these contractual expense limitations through January 31, 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 are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended March 31, 2019, the amounts included in fees waived and/or reimbursed by the Manager in the Statements of Operations were as follows:

Credit Strategies Income	$	349,703
GNMA		245,352
U.S. Government Bond		401,246

These amounts waived and/or reimbursed are included in administration fees waived — class specific and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statements of Operations. For the six months ended March 31, 2019, class specific expense waivers and/or reimbursements are as follows:

Administration fees waived	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	54,312	$	—	$	7,549	$	2,935	$	—	$	3,037	$	—	$	67,833
GNMA		24,336		737		12,183		3,765		—		3,011		—		44,032
U.S. Government Bond		16,610		58		34,997		3,164		1,383		175		1,872		58,259
Transfer agent fees waived and/or reimbursed	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	124,153	$	—	$	28,236	$	8,552	$	—	$	2,773	$	—	$	163,714
GNMA		85,638		3,825		66,508		18,059		—		382		—		174,412
U.S. Government Bond		74,546		1,096		200,932		30,982		24,232		74		63,951		395,813

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

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

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

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

On March 31, 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 September 30,
	2019		2020		2021
Credit Strategies Income
Fund Level	$	803,546	$	664,969	$	349,703
Institutional		138,899		230,226		178,465
Investor A		94,871		90,715		35,785
Investor C		20,190		20,726		11,487
Class K		96		1,461		5,810
GNMA
Fund Level		953,892		572,508		245,352
Institutional		293,432		264,722		109,974
Service		14,157		8,863		4,562
Investor A		179,172		153,353		78,691
Investor C		74,667		55,052		21,824
Class K		4,805		4,904		3,393
U.S. Government Bond
Fund Level		1,061,276		702,225		401,246
Institutional		270,711		241,975		91,156
Service		8,837		2,652		1,154
Investor A		743,595		652,882		235,929
Investor C		89,731		93,152		34,146
Investor C1		107,294		66,151		25,615
Class K		—		143		249
Class R		56,634		50,276		65,823

Interfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow under the Interfund Lending Program.

NOTESTO FINANCIAL STATEMENTS 101

Notes to Financial Statements  (unaudited) (continued)

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 March 31, 2019, the Funds did not participate in the Interfund Lending Program.

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

Other Transactions: The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the six months ended March 31, 2019, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule17a-7 under the 1940 Act were as follows:

	Purchases		Sales		Net Realized Loss
Credit Strategies Income	$	845,900	$	385,769	$	(34,216	)
U.S. Government Bond		1,985		—		—

7. PURCHASES AND SALES

For the six months ended March 31, 2019, purchases and sales of investments, including mortgage dollar rolls and excluding short-term securities, were as follows:

	Credit Strategies Income		GNMA		U.S. Government Bond
Purchases
Non-U.S Government Securities	$	408,087,857	$	4,454,043,700	$	2,628,913,757
U.S Government Securities		1,031,250		—		14,206,656
	$	409,119,107	$	4,454,043,700	$	2,643,120,413
Sales
Non-U.S Government Securities	$	215,760,553	$	4,468,357,446	$	2,680,181,911
U.S Government Securities		24,491,346		—		7,002,256
	$	240,251,899	$	4,468,357,446	$	2,687,184,167

For the six months ended March 31, 2019, purchases and sales related to mortgage dollar rolls were as follows:

Purchases and Sales — MDRs	GNMA		U.S. Government Bond
Purchases	$	1,761,573,871	$	1,067,377,965
Sales		1,762,203,127		1,067,248,399

8. INCOME TAX INFORMATION

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

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended September 30, 2018. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of March 31, 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 Funds’ financial statements.

As of September 30, 2018, the Funds had capital loss carryforwards, with no expiration dates, available to offset future realized capital gains as follows:

	Credit Strategies Income		GNMA		U.S. Government Bond
No expiration date.	$	3,397,033	$	64,841,908	$	55,221,329

102 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

As of March 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Credit Strategies Income			GNMA			U.S. Government Bond
Tax cost	$	815,171,171		$	814,426,571		$	818,485,587
Gross unrealized appreciation		13,408,088			6,220,342			12,667,724
Gross unrealized depreciation		(11,953,390	)		(12,462,304	)		(12,052,659	)
Net unrealized appreciation (depreciation)	$	1,454,698		$	(6,241,962	)	$	615,065

9. BANK BORROWINGS

BlackRock Funds V, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Of the aggregate $2.25 billion commitment amount, $500 million is specifically designated to the Credit Strategies Income and the BlackRock Floating Rate Income Portfolio in the aggregate. The remaining $1.75 billion commitment is available to all Participating Funds, but Credit Strategies Income and BlackRock Floating Rate Income Portfolio can borrow up to an additional $350 million in the aggregate of the remaining aggregate commitment, 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 2019 unless extended or renewed. 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 Statements 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 March 31, 2019, the Funds did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

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

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

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

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

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

A 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.

NOTESTO FINANCIAL STATEMENTS 103

Notes to Financial Statements  (unaudited) (continued)

For OTC options purchased, each Fund bears the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral held by the Funds should the counterparty fail to perform under the contracts. Options written by the Funds do not typically give rise to counterparty credit risk, as options written generally obligate the Funds, and not the counterparty, to perform. The Funds may be exposed to counterparty credit risk with respect to options written to the extent each Fund deposits collateral with its counterparty to a written option.

With exchange-traded options purchased, futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: Certain Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. Certain Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates. The Federal Reserve has begun to raise the Federal Funds rate, and each increase results in more pronounced interest rate risk in the current market environment.

Certain Funds invest a significant portion of their assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. Investment percentages in these securities are presented in the Schedules 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 03/31/19						Year Ended 09/30/18
Credit Strategies Income	Shares			Amount			Shares			Amount
Institutional
Shares sold		32,370,768		$	322,303,544			30,663,664		$	312,912,888
Shares issued in reinvestment of distributions		1,382,158			13,697,635			1,431,697			14,608,534
Shares redeemed		(15,474,122	)		(153,235,013	)		(19,647,469	)		(201,012,316	)
Net increase		18,278,804		$	182,766,166			12,447,892		$	126,509,106
Investor A
Shares sold and automatic conversion of shares		2,764,219		$	27,478,816			3,166,847		$	32,449,295
Shares issued in reinvestment of distributions		190,913			1,890,680			368,057			3,759,810
Shares redeemed		(2,387,850	)		(23,707,524	)		(6,732,725	)		(68,655,355	)
Net increase (decrease)		567,282		$	5,661,972			(3,197,821	)	$	(32,446,250	)
Investor C
Shares sold		569,443		$	5,652,763			720,427		$	7,385,232
Shares issued in reinvestment of distributions		65,320			646,573			90,789			926,825
Shares redeemed and automatic conversion of shares		(591,641	)		(5,874,733	)		(831,606	)		(8,503,523	)
Net increase (decrease)		43,122		$	424,603			(20,390	)	$	(191,466	)
Class K
Shares sold		3,495,666		$	34,833,809			1,636,086		$	16,620,739
Shares issued in reinvestment of distributions		85,346			846,602			18,750			189,994
Shares redeemed		(334,289	)		(3,320,625	)		(110,413	)		(1,124,588	)
Net increase		3,246,723		$	32,359,786			1,544,423		$	15,686,145
Total Net Increase		22,135,931		$	221,212,527			10,774,104		$	109,557,535

	Six Months Ended 03/31/19						Year Ended 09/30/18
GNMA	Shares			Amount			Shares			Amount
Institutional
Shares sold		7,345,204		$	67,222,042			8,235,177		$	76,954,602
Shares issued in reinvestment of distributions		456,155			4,175,285			907,201			8,440,083
Shares redeemed		(8,509,648	)		(77,741,035	)		(14,927,980	)		(138,958,841	)
Net decrease		(708,289	)	$	(6,343,708	)		(5,785,602	)	$	(53,564,156	)

104 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

	Six Months Ended 03/31/19						Year Ended 09/30/18
GNMA	Shares			Amount			Shares			Amount
Service
Shares sold		54,243		$	495,933			237,288		$	2,211,882
Shares issued in reinvestment of distributions		15,299			139,762			30,051			279,000
Shares redeemed		(118,922	)		(1,086,830	)		(411,148	)		(3,839,839	)
Net decrease		(49,380	)	$	(451,135	)		(143,809	)	$	(1,348,957	)
Investor A
Shares sold and automatic conversion of shares		2,784,522		$	25,532,136			2,188,335		$	20,624,609
Shares issued in reinvestment of distributions		237,673			2,184,859			476,811			4,457,112
Shares redeemed		(2,359,885	)		(21,662,390	)		(7,454,101	)		(70,067,424	)
Net increase (decrease)		662,310		$	6,054,605			(4,788,955	)	$	(44,985,703	)
									��
Investor C
Shares sold		132,485		$	1,214,677			342,624		$	3,226,389
Shares issued in reinvestment of distributions		55,112			503,935			129,810			1,207,606
Shares redeemed and automatic conversion of shares		(1,546,913	)		(14,101,458	)		(2,342,985	)		(21,833,050	)
Net decrease		(1,359,316	)	$	(12,382,846	)		(1,870,551	)	$	(17,399,055	)
Class K
Shares sold		1,937,611		$	17,653,775			564,163		$	5,237,470
Shares issued in reinvestment of distributions		68,043			621,798			81,540			755,360
Shares redeemed		(249,759	)		(2,268,738	)		(560,546	)		(5,187,856	)
Net increase		1,755,895		$	16,006,835			85,157		$	804,974
Total Net Increase (Decrease)		301,220		$	2,883,751			(12,503,760	)	$	(116,492,897	)

	Six Months Ended 03/31/19						Year Ended 09/30/18
U.S. Government Bond	Shares			Amount			Shares			Amount
Institutional
Shares sold		4,954,833		$	50,163,655			6,415,507		$	65,409,242
Shares issued in reinvestment of distributions		184,449			1,869,192			290,375			2,961,241
Shares redeemed		(3,959,322	)		(39,836,104	)		(5,974,946	)		(60,945,688	)
Net increase		1,179,960		$	12,196,743			730,936		$	7,424,795
Service
Shares sold		360,119		$	3,714,612			22,592		$	232,303
Shares issued in reinvestment of distributions		798			8,087			4,094			41,757
Shares redeemed		(32,400	)		(330,724	)		(167,939	)		(1,689,673	)
Net increase (decrease)		328,517		$	3,391,975			(141,253	)	$	(1,415,613	)
Investor A
Shares sold and automatic conversion of shares		4,436,493		$	44,997,048			3,984,573		$	40,780,328
Shares issued from conversion(a)		—			—			6,251			64,884
Shares issued in reinvestment of distributions		391,004			3,969,813			681,003			6,965,635
Shares redeemed		(5,984,258	)		(60,689,219	)		(9,863,976	)		(100,907,231	)
Net decrease		(1,156,761	)	$	(11,722,358	)		(5,192,149	)	$	(53,096,384	)
Investor B1
Shares sold		—		$	—			—		$	2
Shares issued in reinvestment of distributions		—			—			21			217
Shares converted(a)		—			—			(6,275	)		(64,884	)
Shares redeemed		—			—			(1,114	)		(11,585	)
Net decrease		—		$	—			(7,368	)	$	(76,250	)
Investor C
Shares sold		508,991		$	5,141,865			1,024,029		$	10,546,671
Shares issued in reinvestment of distributions		27,632			280,024			46,914			479,246
Shares redeemed and automatic conversion of shares		(1,033,872	)		(10,385,850	)		(1,272,743	)		(12,997,763	)
Net decrease		(497,249	)	$	(4,963,961	)		(201,800	)	$	(1,971,846	)

NOTESTO FINANCIAL STATEMENTS 105

Notes to Financial Statements  (unaudited) (continued)

	Six Months Ended 03/31/19						Year Ended 09/30/18
U.S. Government Bond		Shares			Amount			Shares			Amount
Investor C1
Shares sold		122,323		$	1,233,401			254,602		$	2,603,380
Shares issued in reinvestment of distributions		14,786			149,697			30,010			306,631
Shares redeemed		(600,795	)		(6,037,325	)		(866,715	)		(8,881,566	)
Net decrease		(463,686	)	$	(4,654,227	)		(582,103	)	$	(5,971,555	)
							Period from 01/25/18 (b) to 09/30/18
Class K
Shares sold		64,848		$	655,388			178,325		$	1,808,269
Shares issued in reinvestment of distributions		2,302			23,352			1,517			15,354
Shares redeemed		(16,842	)		(169,698	)		(28,659	)		(290,017	)
Net increase		50,308		$	509,042			151,183		$	1,533,606
							Year Ended 09/30/18
Class R
Shares sold		440,712		$	4,474,618			605,380		$	6,198,711
Shares issued in reinvestment of distributions		22,753			230,888			38,013			388,804
Shares redeemed		(765,535	)		(7,783,400	)		(809,824	)		(8,288,824	)
Net decrease		(302,070	)	$	(3,077,894	)		(166,431	)	$	(1,701,309	)
Total Net Decrease		(860,981	)	$	(8,320,680	)		(5,408,985	)	$	(55,274,556	)

^(a)  Effective December 27, 2017, Investor B1 shares were converted into Investor A shares.

^(b)  Commencement of operations.

As of March 31, 2019, BlackRock HoldCo 2, Inc., an affiliate of the Funds, owned 19,841 Class K Shares of Credit Strategies Income and BlackRock Financial Management, Inc., an affiliate of the Funds, owned 19,550 Class K Shares of U.S. Government Bond.

12. REGULATIONS-X AMENDMENTS

On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532, Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation in the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to Financial Statements.

Prior year distribution information and undistributed (distributions in excess of) net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.

Distributions for the year ended September 30, 2018 were classified as follows:

	Share Class	Net Investment Income
Credit Strategies Income	Institutional	$	(16,112,100	)
	Investor A		(3,885,278	)
	Investor C		(986,678	)
	Class K		(199,081	)
GNMA	Institutional		(10,078,634	)
	Service		(279,131	)
	Investor A		(4,674,749	)
	Investor C		(1,369,949	)
	Class K		(755,655	)
U.S. Government Bond	Institutional		(3,998,385	)
	Service		(41,989	)
	Investor A		(8,369,184	)
	Investor B1(a)		(302	)
	Investor C		(534,817	)
	Investor C1		(307,943	)
	Class K		(17,877	)
	Class R		(389,299	)

^(a)  Effective December 27, 2017, Investor B1 shares were converted into Investor A shares.

106 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Undistributed (distributions in excess of) net investment income as of September 30, 2018 is as follows:

	Undistributed (Distributions in Excess of) Net Investment Income
Credit Strategies Income	$	(94,529	)
GNMA		7,754
U.S. Government Bond		(1,459,210	)

13. SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Effective April 18, 2019, the credit agreement was extended until April 2020 under the same terms.

NOTESTO FINANCIAL STATEMENTS 107

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

At a special meeting of shareholders held on November 21, 2018, each Fund’s shareholders elected Trustees who took office on January 1, 2019. The newly elected Trustees include three former Trustees and eight individuals who served as directors/trustees of the funds in the BlackRockClosed-End Complex. Information regarding the individuals who began serving as Trustees effective January 1, 2019 can be found in the proxy statement for the special meeting of shareholders, which is available on the SEC’s EDGAR Database at http://www.sec.gov.

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisers^(a)

BlackRock International Limited

Edinburgh, EH3 8BL

United Kingdom

BlackRock (Singapore) Limited

079912 Singapore

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

JPMorgan Chase Bank, N.A.

New York, NY 10179

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Trust

100 Bellevue Parkway

Wilmington, DE 19809

^(a)  For Credit Strategies Income.

108 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Additional Information

Proxy Results

A Special Meeting of Shareholders was held on November 21, 2018 for shareholders of record on September 24, 2018, to elect a Board of Trustees of the Trust. The newly elected Trustees took office effective January 1, 2019.

Shareholders approved the Trustees* of BlackRock Funds V with voting results as follows:

	Votes For		Votes Withheld
Michael J. Castellano		5,681,237,134		34,155,316
Richard E. Cavanagh		5,683,014,051		32,378,399
Cynthia L. Egan		5,689,624,061		25,768,389
Frank J. Fabozzi		5,685,956,903		29,435,547
Robert Fairbairn		5,687,114,814		28,277,636
Henry Gabbay		5,684,019,280		31,373,170
R. Glenn Hubbard		5,685,110,636		30,281,814
W. Carl Kester		5,686,245,509		29,146,941
Catherine A. Lynch		5,689,695,450		25,697,000
John M. Perlowski		5,683,657,097		31,735,353
Karen P. Robards		5,688,174,287		27,218,163

* Denotes Trust-wide proposal and voting results.

The above Trustees, referred to as the BlackRock Fixed-Income Board, have also been elected to serve as trustees for other BlackRock-advisednon-index fixed-income mutual funds and all of the BlackRock-advisedclosed-end funds.

General Information

Householding

TheFunds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800)441-7762.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q. The Funds’ FormsN-Q are available on the SEC’s website at http://www.sec.gov. The Funds’ FormsN-Q may also be obtained upon request and without charge by calling (800)441-7762.

Availability of Proxy Voting Policies and Procedures

Adescription of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800)441-7762; (2) athttp://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent12-month period ended June 30 is available upon request and without charge (1) athttp://www.blackrock.com; 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 ofopen-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income andtax-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.

ADDITIONAL INFORMATION 109

Additional Information  (continued)

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.

BlackRock Privacy Principles

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

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

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

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

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

110 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report

Currency
ARS	Argentine Peso
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CLP	Chilean Peso
CNY	Chinese Yuan
COP	Colombian Peso
EUR	Euro
GBP	British Pound
HKD	Hong Kong Dollar
IDR	Indonesian Rupiah
JPY	Japanese Yen
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
RUB	New Russian Ruble
SEK	Swedish Krona
TRY	Turkish Lira
TWD	Taiwan Dollar
USD	United States Dollar
ZAR	South African Rand

Portfolio Abbreviations
BZDIOVER	Overnight Brazil CETIP — Interbank Rate
CDX	Credit Default Swap Index
CLO	Collateralized Loan Obligations
CSMC	Credit Suisse Mortgage Capital
DAC	Designated Activity Company
ETF	Exchange-Traded Fund
EURIBOR	Euro Interbank Offered Rate
LIBOR	London Interbank Offered Rate
MXIBTIIE	Mexico Interbank TIIE28-Day
OTC	Over-The-Counter
PCL	Public Company Limited
PIK	Payment-in-kind
S&P	S&P Global Ratings
SPDR	S&P Global Rating Depositary Receipts
TBA	To-be-announced

GLOSSARYOF TERMS USEDINTHIS REPORT 111

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

TaxableCGU-3/19-SAR

MARCH 31, 2019

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Funds V

^Ø  BlackRock Core Bond Portfolio

^Ø  BlackRock High Yield Bond Portfolio

^Ø  BlackRock Low Duration Bond Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each 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,

In the 12 months ended March 31, 2019, the U.S. equity and bond markets posted positive returns while weathering significant volatility. Though the market’s appetite for risk remained healthy for most of the reporting period, risk taking declined sharply in late 2018. Thereafter, global equity markets rebounded strongly, as inflation diminished and the U.S. Federal Reserve (the “Fed”) announced a shift to less restrictive monetary policy.

Volatility rose in emerging market stocks, 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, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe also led to negative performance for European equities. However, recent economic data indicates that Europe may emerge from its economic soft patch, reinvigorated by a manufacturing rebound and China’s economic stimulus.

Volatility in the U.S. equity market spiked in October, 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 in several countries, including the United States. These risks manifested in a broad-basedsell-off in December, leading to the worst December performance on record since 1931.

By comparison, fixed income securities delivered modest positive returns with relatively low volatility. In fixed income markets, short-term U.S. Treasury yields rose the fastest, while longer-term yields declined slightly. 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.

The Fed increased short-term interest rates three times during the reporting period. For its last two meetings, the Fed left interest rates unchanged and signaled a slower pace of rate hikes in response to the global economic slowdown. Relatively low inflation and modest economic growth give the Fed room to maintain support for the economy until the economic data builds the case for changing interest rates.

Although fears of recession drove equity volatility higher at the end of 2018, we continue to believe the probability of recession in 2019 remains relatively low. Economic growth and global earnings are likely to slow somewhat in 2019 because the tax cut stimulus will be less pronounced, and the Fed’s rate hikes in 2018 will gain traction in 2019. We expect profit margins to continue to contract, which tends to happen late in the business cycle.

In addition, trade frictions look more baked into asset prices than a year ago, but markets may be overlooking European political risks. As Brexit moves forward, the United Kingdom and the European Union may face significant obstacles. Most recently, Britain’s Parliament voted to extend the deadline for the separation, as policy makers continue to seek the least disruptive ways to disentangle Europe’s second-largest economy from the European Union. U.S. and emerging market equities remain relatively attractive. Within U.S. equities, we believe that companies with high-quality earnings and strong balance sheets offer the most attractive risk/rewardtrade-off.

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 March 31, 2019
	6-month	12-month
U.S. large cap equities (S&P 500® Index)	(1.72)%	9.50%
U.S. small cap equities (Russell 2000® Index)	(8.56)	2.05
International equities (MSCI Europe, Australasia, Far East Index)	(3.81)	(3.71)
Emerging market equities (MSCI Emerging Markets Index)	1.71	(7.41)
3-month Treasury bills (ICE BofAML3-Month U.S. Treasury Bill Index)	1.17	2.12
U.S. Treasury securities (ICE BofAML10-Year U.S. Treasury Index)	7.08	5.59
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	4.63	4.48
Tax-exempt municipal bonds (S&P Municipal Bond Index)	4.32	5.12
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	2.39	5.93
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:
Fund Summaries		4
About Fund Performance		13
Disclosure of Expenses		14
The Benefits and Risks of Leveraging		14
Derivative Financial Instruments		14
Financial Statements:
Schedules of Investments		15
Statements of Assets and Liabilities		86
Statements of Operations		89
Statements of Changes in Net Assets		90
Financial Highlights		92
Notes to Financial Statements		114
Trustee and Officer Information		136
Additional Information		137
Glossary of Terms Used in this Report		139

3

Fund Summary  as of March 31, 2019 BlackRock Core Bond Portfolio

Investment Objective

BlackRock Core Bond Portfolio’s (the “Fund”) investment objective is to seek to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended March 31, 2019, the Fund’s Institutional, Service, Investor A and Class K Shares performed in line with the benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, while the Fund’s Investor C and Class R Shares underperformed.

What factors influenced performance?

During the period, the Fund’s overweight to U.S. investment grade credit added to performance relative to the benchmark. Within securitized assets, exposure to collateralized loan obligations (“CLOs”) and commercial mortgage-backed securities contributed positively. Positioning with respect to overall portfolio duration (sensitivity to interest rate changes) was also beneficial. Finally, an overweight to U.S. municipal bonds contributed to performance.

The Fund’s tactical positioning within emerging markets pursuant to its macro overlay strategies represented the largest detractor from returns.

Describe recent portfolio activity.

During the fourth quarter of 2018, the Fund’s overweight in duration relative to the benchmark was reduced, while exposure was rotated further out the yield curve. Given the investment adviser’s view that slowing economic growth and a near-neutral rate policy by the Fed should keep U.S. interest rates range-bound in the near term, the Fund added to sectors that should benefit from more accommodative monetary policy going forward, such as agency mortgage-backed securities (“MBS”) and municipal bonds, as well as local-currency emerging market debt. The Fund also continued to overweight investment grade credit for high quality income. Despite broader market weakness during the fourth quarter, securitized assets held up well. Thus, the Fund realized profits in areas such as CLOs, and rotated from floating rate to fixed rate exposure.

In the first quarter of 2019, as risk assets rebounded sharply the Fund’s overweight in duration was modestly increased, while exposure was rotated to slightly longer-dated issues. Following the aggressivere-pricing of risk assets in late 2018, the investment adviser used the opportunity to add to the Fund’s overweight in investment grade credit on the belief that the sector should benefit from lower volatility while providing a durable source of income for the portfolio. Given recent dips in interest rates that could lead to apick-up in prepayment speeds, the Fund shifted to an underweight in agency MBS, while maintaining diversified exposure in securitized assets.

Describe portfolio positioning at period end.

Toward the end of the period, the Fund’s duration was further increased providing a means to manage the portfolio against any“risk-off” move in the market, with a continued preference for the front of the yield curve given an attractive risk/reward profile relative to longer-dated Treasuries. The Fund also maintained an overweight to corporate credit, particularly within high quality names, and in securitized assets as sources of durable income. Given falling rates, the Fund shifted to a short position in agency MBS in anticipation of a potentialpick-up in prepayment speeds. Outside of the United States, the Fund held slight overweight positions in areas includingnon-U.S. credit and emerging market debt, with a cautious stance regarding credit selection.

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 March 31, 2019 (continued) BlackRock Core Bond Portfolio

Performance Summary for the Period Ended March 31, 2019

										Average Annual Total Returns (a)(b)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		3.13	%		3.05	%		4.63	%		4.50	%		N/A			2.70	%		N/A			4.83	%		N/A
Service		2.88			2.70			4.61			4.35			N/A			2.43			N/A			4.52			N/A
Investor A		2.77			2.60			4.60			4.34			0.17	%		2.42			1.59	%		4.52			4.10	%
Investor C		2.15			2.00			4.23			3.58			2.58			1.66			1.66			3.75			3.75
Class K		3.18			3.13			4.64			4.54			N/A			2.76			N/A			4.92			N/A
Class R		2.64			2.44			4.36			3.97			N/A			2.14			N/A			4.23			N/A
Bloomberg Barclays U.S. Aggregate Bond Index(c)		—			—			4.63			4.48			N/A			2.74			N/A			3.77			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 13 for a detailed description of share classes, including any related sales charges and fees.

^(b)  The Fund normally invests at least 80% of its assets in bonds and maintains an average portfolio duration that is within ±20% of the duration of the Bloomberg Barclays U.S. Aggregate Bond Index (the benchmark). On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Core Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(c)  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(a)
					Including interest expense		Excluding interest expense				Including interest expense				Excluding interest expense
	Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Ending Account Value (03/31/19)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,046.30	$	3.01	$	2.24	$	1,000.00	$	1,021.99	$	2.97	$	1,022.74	$	2.22
Service		1,000.00		1,046.10		4.29		3.52		1,000.00		1,020.74		4.23		1,021.49		3.48
Investor A		1,000.00		1,046.00		4.28		3.52		1,000.00		1,020.74		4.23		1,021.49		3.48
Investor C		1,000.00		1,042.30		8.10		7.33		1,000.00		1,017.00		8.00		1,017.75		7.24
Class K		1,000.00		1,046.40		2.76		1.99		1,000.00		1,022.24		2.72		1,022.99		1.97
Class R		1,000.00		1,043.60		5.55		4.79		1,000.00		1,019.50		5.49		1,020.24		4.73

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

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.59% for Institutional, 0.84% for Service, 0.84% for Investor A, 1.59% for Investor C , 0.54% for Class K and 1.09% for Class R), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.44% for Institutional, 0.69% for Service, 0.69% for Investor A, 1.44% for Investor C , 0.39% for Class K and 0.94% for Class R), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on Page 14 for further information on how expenses were calculated.

FUND SUMMARY 5

Fund Summary  as of March 31, 2019 (continued) BlackRock Core Bond Portfolio

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
Corporate Bonds		35	%
U.S. Government Sponsored Agency Obligations		34
U.S. Treasury Obligations		18
Asset-Backed Securities		5
Non-Agency Mortgage-Backed Securities		3
Municipal Bonds		3
Foreign Government Obligations		2
Foreign Agency Obligations		—	(b)
Capital Trusts		—	(b)
Other Interests		—	(b)

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

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

CREDIT QUALITY ALLOCATION^(a)

Credit Rating	Percent of Total Investments (b)
AAA/Aaa(c)		57	%
AA/Aa		5
A		14
BBB/Baa		23
BB/Ba		—	(d)
B		—	(d)
CCC/Caa		—	(d)
NR		1

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

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

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

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

6 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2019 BlackRock High Yield Bond Portfolio

Investment Objective

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

Fund Management Commentary

How did the Fund perform?

For thesix-month period ended March 31, 2019, the Fund underperformed the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index.

What factors influenced performance?

From a sector perspective, the Fund’s holdings in the gaming sector represented the largest detractor over the period, followed by positions within metals & mining and wireless. In terms of credit rating, the Fund’s underweight toBB-rated names detracted, as did security selection withinB-rated issues. In terms of the Fund’s asset allocation, equity positions broadly subtracted from performance over the period, as equities were negatively affected by considerable fourth quarter 2018 market volatility. Positions in liquid products such as high yield ETFs, high yield credit default swaps and total return swaps also slightly detracted. Tactical allocations to floating rate loan interests (“bank loans”) and collateralized loan obligations had only modest effects on Fund returns.

Conversely, from a sector perspective, the most meaningful contributors to performance for the six months included positions in the aerospace & defense, pharmaceuticals and banking sectors. In terms of credit rating, security selection within theCCC-rated category contributed to performance, as the Fund avoided the most stressed portions within that segment of the high yield market.

Describe recent portfolio activity.

From an asset allocation perspective, the Fund’s bank loan exposure was managed tactically throughout thesix-month period as market conditions warranted. While management of duration (sensitivity to interest rate changes) currently plays less of a role given abated rate fears, strong relative value within capital structures and across sectors continued to provide attractive opportunities within bank loans. The Fund similarly maintained tactical equity positions, though this allocation was reduced over the period. Within core high yield, positioning by credit quality remained broadly consistent as the investment adviser saw better value withinB-rated and selectCCC-rated names compared withBB-rated securities. That said, toward the beginning of 2019 the investment adviser took advantage of wider spreads and more attractive valuations to increaseBB-rated exposures. Lastly, despite an overweight inCCC-rated bonds, the portfolio remained underweight in the riskier, higher yielding portion of the market in order to prudently manage risk.

Describe portfolio positioning at period end.

The Fund’s core issuer/credit biases remained centered on cash flow views, the determination of a specific catalyst and/or idiosyncratic characteristics. Overall, the Fund remained underweight inBB-rated credits. The portfolio was also overweight inB-rated issuers and selectCCC-rated bonds with improving credit positions or attractive yields. Importantly, the Fund maintained underweights to the market’s “tails”: both the higher-yielding segment of the market that contains a larger concentration of stressed assets and the lower yielding portion whose spreads are less attractive. From a sector standpoint, technology, aerospace & defense and pharmaceuticals were the Fund’s most significant overweight positions, while retailers, home construction and finance were the largest underweights. From an asset allocation perspective, the Fund ended the period with an approximate 10% allocation to bank loans. The portfolio’s equity positioning was roughly 0.7% at period end, reflecting both common equity positions and futures hedges. The Fund also maintained positions in high yield liquid products.

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

FUND SUMMARY 7

Fund Summary  as of March 31, 2019 (continued) BlackRock High Yield Bond Portfolio

Performance Summary for the Period Ended March 31, 2019

										Average Annual Total Returns (a)(b)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		5.90	%		5.90	%		1.63	%		4.97	%		N/A			4.33	%		N/A			11.30	%		N/A
Service		5.63			5.63			1.48			4.53			N/A			4.02			N/A			10.93			N/A
Investor A		5.35			5.33			1.33			4.49			0.31	%		3.97			3.13	%		10.93			10.47	%
Investor C		4.85			4.85			1.10			3.90			2.91			3.23			3.23			10.12			10.12
Investor C1		4.95			4.95			1.16			3.95			N/A			3.42			N/A			10.29			N/A
Class K		6.01			6.01			1.55			4.94			N/A			4.40			N/A			11.37			N/A
Class R		5.27			5.27			1.31			4.30			N/A			3.67			N/A			10.60			N/A
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index(c)		—			—			2.39			5.93			N/A			4.69			N/A			11.21			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 13 for a detailed description of share classes, including any related sales charges and fees.

^(b)  The Fund invests primarily innon-investment grade bonds with maturities of ten years or less. The Fund normally invests at least 80% of its assets in high yield bonds. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock High Yield Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

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

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(a)
					Including excise tax and interest expense		Excluding excise tax and interest expense				Including excise tax and interest expense				Excluding excise tax and interest expense
	Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Ending Account Value (03/31/19)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,016.30	$	3.02	$	3.02	$	1,000.00	$	1,021.94	$	3.02	$	1,021.94	$	3.02
Service		1,000.00		1,014.80		4.47		4.47		1,000.00		1,020.49		4.48		1,020.49		4.48
Investor A		1,000.00		1,013.30		4.62		4.62		1,000.00		1,020.34		4.63		1,020.34		4.63
Investor C		1,000.00		1,011.00		8.27		8.27		1,000.00		1,016.70		8.30		1,016.70		8.30
Investor C1		1,000.00		1,011.60		7.47		7.47		1,000.00		1,017.50		7.49		1,017.50		7.49
Class K		1,000.00		1,015.50		2.51		2.51		1,000.00		1,022.44		2.52		1,022.44		2.52
Class R		1,000.00		1,013.10		6.17		6.17		1,000.00		1,018.80		6.19		1,018.80		6.19

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

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.60% for Institutional, 0.89% for Service, 0.92% for Investor A, 1.65% for Investor C, 1.49% for Investor C1, 0.50% for Class K and 1.23% for Class R), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.60% for Institutional, 0.89% for Service, 0.92% for Investor A, 1.65% for Investor C, 1.49% for Investor C1, 0.50% for Class K and 1.23% for Class R), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on Page 14 for further information on how expenses were calculated.

8 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2019 (continued) BlackRock High Yield Bond Portfolio

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
Corporate Bonds		84	%
Floating Rate Loan Interests		10
Asset-Backed Securities		2
Preferred Securities		2
Common Stocks		2
Investment Companies		—	(b)
Non-Agency Mortgage-Backed Securities		—	(b)
Foreign Agency Obligations		—	(b)
Other Interests		—	(b)
Warrants		—	(b)

^(a)  Total investments exclude short-term securities.

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

CREDIT QUALITY ALLOCATION ^(a)

Credit Rating	Percent of Total Investments (b)
AA/Aa		—	%(c)
A		1
BBB/Baa		6
BB/Ba		41
B		39
CCC/Caa		10
NR		3

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

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

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

FUND SUMMARY 9

Fund Summary  as of March 31, 2019 BlackRock Low Duration Bond Portfolio

Investment Objective

BlackRock Low Duration Bond Portfolio’s (the “Fund”) investment objective is to seek to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended March 31, 2019, the Fund underperformed the ICE BofAML1-3 Year U.S. Corporate & Government Index.

What factors influenced performance?

During the period, the Fund’s stance with respect to duration (sensitivity to interest rate changes) and yield curve positioning were the primary detractors from performance. In particular, the Fund’s shorter duration positioning in December 2018 detracted from returns as a strong investor bid for Treasuries prompted reductions in rate levels and higher bond prices.

Conversely, positive contributions to performance over the period were led by the Fund’s allocations to investment grade and high yield corporate bonds. Holdings of securitized sectors also aided relative return, most notably asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”).

Describe recent portfolio activity.

As credit spreads widened in early September 2018, the investment adviser began to increase the Fund’s exposure to investment grade corporate securities on the belief that spreads would tighten by year end. Instead, prevailing“risk-off” market sentiment and a flurry of negative news within credit issues spurred considerable spread widening during the fourth quarter of 2018. The Fund entered 2019 with the view that spreads would recede in light of the Fed’s abrupt change to a dovish stance in the face of broad-based signs of a U.S. economic slowdown. In addition, while the Fund maintained its overweight to corporate bonds, in particular within the communications, banks and energy sectors, some of this exposure was reduced toward the close of the reporting period by selling bonds from the banking sector and rotating into securitized segments such as ABS and CMBS. The Fund emphasized ABS on the belief that the U.S. consumer remains strong. The Fund also added to its CMBS holdings as this sector has lagged the overall retracement in spreads seen in the first quarter of 2019, making it appear attractive on a relative basis. Lastly, the Fund’s allocation to residential mortgage-backed securities was reduced, as the investment adviser believes that lower rates make the sector vulnerable to prepayment risk.

Describe portfolio positioning at period end.

At the end of the reporting period, the Fund was tactically positioned with a slight long duration bias on the view that slower growth, modest inflation and tightening financial conditions should keep potential Fed rate hikes on hold during 2019. From an allocation perspective, the Fund remained structurally underweight in U.S. Treasuries relative to the benchmark. The Fund also continued to favor corporate and structured credit, with largenon-benchmark allocations in ABS and CMBS.

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.

10 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2019 (continued) BlackRock Low Duration Bond Portfolio

Performance Summary for the Period Ended March 31, 2019

										Average Annual Total Returns (a)(b)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		2.70	%		2.66	%		2.25	%		3.00	%		N/A			1.68	%		N/A			3.45	%		N/A
Service		2.46			2.35			2.02			2.74			N/A			1.39			N/A			3.10			N/A
Investor A		2.40			2.28			2.02			2.74			0.42	%		1.38			0.92	%		3.11			2.87	%
Investor A1		2.61			2.51			2.09			2.89			N/A			1.55			N/A			3.28			N/A
Investor C		1.71			1.59			1.74			1.97			0.97			0.63			0.63			2.36			2.36
Investor C2		2.31			1.77			1.94			2.58			N/A			1.23			N/A			2.97			N/A
Investor C3		1.81			1.47			1.79			2.07			N/A			0.69			N/A			2.36			N/A
Class K		2.75			2.74			2.27			3.04			N/A			1.73			N/A			3.49			N/A
Class R		2.21			1.97			1.89			2.48			N/A			1.12			N/A			2.73			N/A
ICE BofAML1-3 Year U.S. Corporate & Government Index(c)		—			—			2.40			3.06			N/A			1.24			N/A			1.64			N/A

^(a)  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 13 for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain classes.

^(b)  The Fund invests primarily in investment grade bonds and maintains an average portfolio duration that is between0-3 years. The Fund normally invests at least 80% of its assets in debt securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Low Duration Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through atax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(c)  An unmanaged index comprised of investment grade corporate bonds and U.S. Government Agency and U.S. Treasury securities with a maturity ranging from one to three years.

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 (a)
					Including interest expense		Excluding interest expense				Including interest expense				Excluding interest expense
	Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (10/01/18)		Ending Account Value (03/31/19)		Expenses Paid During the Period (b)		Ending Account Value (03/31/19)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,022.50	$	2.02	$	2.02	$	1,000.00	$	1,022.94	$	2.02	$	1,022.94	$	2.02
Service		1,000.00		1,020.20		3.27		3.27		1,000.00		1,021.69		3.28		1,021.69		3.28
Investor A		1,000.00		1,020.20		3.27		3.27		1,000.00		1,021.69		3.28		1,021.69		3.28
Investor A1		1,000.00		1,020.90		2.52		2.52		1,000.00		1,022.44		2.52		1,022.44		2.52
Investor C		1,000.00		1,017.40		7.04		7.04		1,000.00		1,017.95		7.04		1,017.95		7.04
Investor C2		1,000.00		1,019.40		4.03		4.03		1,000.00		1,020.94		4.03		1,020.94		4.03
Investor C3		1,000.00		1,017.90		6.54		6.54		1,000.00		1,018.45		6.54		1,018.45		6.54
Class K		1,000.00		1,022.70		1.77		1.77		1,000.00		1,023.19		1.77		1,023.19		1.77
Class R		1,000.00		1,018.90		4.53		4.53		1,000.00		1,020.44		4.53		1,020.44		4.53

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

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.40% for Institutional, 0.65% for Service, 0.65% for Investor A, 0.50% for Investor A1, 1.40% for Investor C, 0.80% for Investor C2, 1.30% for Investor C3, 0.35% for Class K and 0.90% for Class R), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.40% for Institutional, 0.65% for Service, 0.65% for Investor A, 0.50% for Investor A1, 1.40% for Investor C, 0.80 % for Investor C2, 1.30% for Investor C3, 0.35% for Class K and 0.90% for Class R), multiplied by the average account value over the period, multiplied by 182/365 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on page 14 for further information on how expenses were calculated.

FUND SUMMARY 11

Fund Summary  as of March 31, 2019 (continued) BlackRock Low Duration Bond Portfolio

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
Corporate Bonds		34	%
Asset-Backed Securities		28
Non-Agency Mortgage-Backed Securities		14
U.S. Treasury Obligations		11
U.S. Government Sponsored Agency Obligations		9
Investment Companies		3
Foreign Government Obligations		1
Municipal Bonds		—	(b)
Foreign Agency Obligations		—	(b)

^(a)  Total investments exclude short-term securities and TBA sale commitments.

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

CREDIT QUALITY ALLOCATION ^(a)

Credit Rating	Percent of Total Investments (b)
AAA/Aaa(c)		59	%
AA/Aa		3
A		12
BBB/Baa		22
BB/Ba		—	(d)
B		—	(d)
D		—	(d)
NR		4

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

^(b)  Total Investments exclude short-term securities and TBA sale commitments.

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

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

12 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

About Fund Performance

On September 17, 2018, each Fund acquired all of the assets, subject to the liabilities, of a corresponding series of BlackRock Funds II (each, a “Predecessor Fund”) intax-free reorganizations (each, a “Reorganization”). Each Predecessor Fund is the performance and accounting survivor of its Reorganization. Accordingly, information provided herein for periods prior to the Reorganizations is that of each Fund’s corresponding Predecessor Fund. See Note 1 of the Notes to Financial Statements for additional information regarding the Reorganizations.

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

Service Shares are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee) and are only available to certain eligible investors.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 4.00% for all Funds included in this report, except for BlackRock Low Duration Bond Portfolio (“Low Duration Bond”), which is subject to an initial sales charge of 2.25%. These shares are subject to 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 A1 Shares (available only in Low Duration Bond) are subject to a maximum initial sales charge(front-end load) of 1.00% and a service fee of 0.10% per year (but no distribution fee). The maximum initial sales charge does not apply to current eligible shareholders of Investor A1 Shares of the Fund. Certain redemption of these shares may be subject to a CDSC where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders.

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, each Fund adopted an automatic conversion feature whereby Investor C Shares held for approximately ten years will be automatically converted into Investor A Shares, and, thereafter, investors will be subject to lower ongoing fees.

Investor C1, Investor C2 and Investor C3 Shares (Investor C1 Shares available only in High Yield Bond; Investor C2 and Investor C3 Shares available only in Low Duration Bond) are subject to a 1.00% CDSC if redeemed within one year of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through the reinvestment of dividends and capital gains by existing shareholders. In addition, these shares are subject to a distribution fee of 0.55%, 0.30% and 0.65% per year, respectively, and a service fee of 0.25%, 0.10% and 0.25% per year, respectively. Prior to July 18, 2011, Low Duration Bond’s Investor C3 Shares performance results are those of Institutional Shares (which have no distribution or service fees) restated to reflect Investor C3 Shares fees. Effective November 8, 2018, High Yield Bond and Low Duration Bond adopted an automatic conversion feature whereby Investor C1, C2 and C3 Shares, as applicable, held for approximately ten years will be automatically converted into Investor A Shares, and, thereafter, investors will be subject to lower ongoing fees.

Class R Sharesare not subject to any sales charge. These shares are subject to a distribution fee of 0.25% per year and a service fee of 0.25% per year. These shares are available only to certain employer sponsored retirement plans. Prior to July 18, 2011, Low Duration Bond’s Class R Shares performance results are those of Institutional Shares (which have no distribution or service fees) restated to reflect Class R Shares fees.

Investor A1, Investor C1, Investor C2 and Investor C3 Shares of their respective Funds are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans.

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.comto 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 tables on the previous pages assume reinvestment of all distributions, if any, at NAV on theex-dividend/payable dates. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver and/or reimbursement, each 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. The standardized30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized30-day yield excludes the effects of any waivers and/or reimbursements.

ABOUT FUND PERFORMANCE 13

Disclosure of Expenses

Shareholders of each 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, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples shown on the previous pages (which are based on a hypothetical investment of $1,000 invested on October 1, 2018 and held through March 31, 2019) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance returns and NAV. However, there is no guarantee that these objectives can be achieved in all interest rate environments.

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

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

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

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

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

Derivative Financial Instruments

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

14 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 6.1%
Adams Mill CLO Ltd., Series2014-1A, Class A2R, (LIBOR USD 3 Month + 1.10%), 3.89%, 07/15/26(a)(b)	USD		1,145	$	1,144,819
Allegro CLOII-S Ltd., Series2014-1RA, Class A1, (LIBOR USD 3 Month + 1.08%), 3.84%, 10/21/28(a)(b)			1,130		1,127,011
ALM V Ltd.(a)(b):
Series2012-5A, Class A2R3, (LIBOR USD 3 Month + 1.25%), 4.03%, 10/18/27			1,000		982,180
Series2012-5A, Class BR3, (LIBOR USD 3 Month + 1.65%), 4.43%, 10/18/27			610		597,294
ALM XII Ltd.(a)(b):
Series2015-12A, Class A1R2, (LIBOR USD 3 Month + 0.89%), 3.67%, 04/16/27			290		289,405
Series2015-12A, Class BR2, (LIBOR USD 3 Month + 1.65%), 4.43%, 04/16/27			1,110		1,093,345
ALM XVI Ltd.(a)(b):
Series2015-16A, Class A2R2, (LIBOR USD 3 Month + 1.50%), 4.29%, 07/15/27			1,480		1,467,895
Series2015-16A, Class BR2, (LIBOR USD 3 Month + 1.90%), 4.69%, 07/15/27			560		549,123
ALM XVIII Ltd., Series2016-18A, Class A2R, (LIBOR USD 3 Month + 1.65%), 4.44%, 01/15/28(a)(b)			250		249,340
AMMC CLO XII Ltd., Series2013-12A, Class AR, (LIBOR USD 3 Month + 1.20%), 3.90%, 11/10/30(a)(b)			500		498,393
AMMC CLO XIII Ltd., Series2013-13A, Class A1LR, (LIBOR USD 3 Month + 1.26%), 4.04%, 07/24/29(a)(b)			790		791,382
AMMC CLO XIV Ltd., Series2014-14A, Class A1LR, (LIBOR USD 3 Month + 1.25%), 4.02%, 07/25/29(a)(b)			1,530		1,532,043
Anchorage Capital CLO 1 Ltd., Series2018-1RA, Class A1, (LIBOR USD 3 Month + 0.99%), 3.79%, 04/13/31(a)(b)			2,240		2,208,426
Anchorage Capital CLO3-R Ltd., Series2014-3RA, Class B, (LIBOR USD 3 Month + 1.50%), 4.26%, 01/28/31(a)(b)			1,040		1,020,111
Anchorage Capital CLO4-R Ltd., Series2014-4RA, Class A, (LIBOR USD 3 Month + 1.05%), 3.81%, 01/28/31(a)(b)			920		913,625
Anchorage Capital CLO5-R Ltd.(a)(b):
Series2014-5RA, Class B, (LIBOR USD 3 Month + 1.45%), 4.24%, 01/15/30			420		413,613
Series2014-5RA, Class C, (LIBOR USD 3 Month + 1.85%), 4.64%, 01/15/30			250		242,430
Anchorage Capital CLO 6 Ltd., Series2015-6A, Class AR, (LIBOR USD 3 Month + 1.27%), 4.06%, 07/15/30(a)(b)			580		580,394
Anchorage Capital CLO 7 Ltd.(a)(b):
Series2015-7A, Class AR, (LIBOR USD 3 Month + 0.96%), 3.75%, 10/15/27			5,890		5,870,800
Series2015-7A, Class CR, (LIBOR USD 3 Month + 1.70%), 4.49%, 10/15/27			620		608,897
Anchorage Capital CLO 8 Ltd.(a)(b):
Series2016-8A, Class AR, (LIBOR USD 3 Month + 1.00%), 3.76%, 07/28/28			570		567,398
Series2016-8A, Class BR, (LIBOR USD 3 Month + 1.60%), 4.36%, 07/28/28			650		645,011
Anchorage Capital CLO Ltd., Series2013-1A, Class A1R, (LIBOR USD 3 Month + 1.25%), 4.05%, 10/13/30(a)(b)			670		667,329
Apidos CLO XII, Series2013-12A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.87%, 04/15/31(a)(b)			4,166		4,117,252
Apidos CLO XV, Series2013-15A, Class A1RR, (LIBOR USD 3 Month + 1.01%), 3.77%, 04/20/31(a)(b)			500		492,552
Apidos CLO XVI, Series2013-16A, Class A1R, (LIBOR USD 3 Month + 0.98%), 3.74%, 01/19/25(a)(b)			256		256,163
Apidos CLO XVIII, Series2018-18A, Class A1, (LIBOR USD 3 Month + 1.14%), 3.90%, 10/22/30(a)(b)			350		346,344

Security		Par (000)		Value
Asset-Backed Securities (continued)
Arbor Realty Commercial Real Estate Notes Ltd.(a)(b):
Series 2016-FL1A, Class A, (LIBOR USD 1 Month + 1.70%), 4.18%, 09/15/26	USD		1,300	$	1,310,079
Series2017-FL2, Class A, (LIBOR USD 1 Month + 0.99%), 3.47%, 08/15/27			450		447,814
Ares XXXVII CLO Ltd., Series2015-4A, Class A1R, (LIBOR USD 3 Month + 1.17%), 3.96%, 10/15/30(a)(b)			310		308,109
Atlas Senior Loan Fund IV Ltd., Series2013-2A, Class A2RR, (LIBOR USD 3 Month + 1.30%), 3.98%, 02/17/26(a)(b)			830		830,354
Atrium IX, Series 9A, Class AR, (LIBOR USD 3 Month + 1.24%), 3.87%, 05/28/30(a)(b)			990		985,737
Atrium XII, Series 12A, Class AR, (LIBOR USD 3 Month + 0.83%), 3.59%, 04/22/27(a)(b)			380		377,397
Avery Point V CLO Ltd.(a)(b):
Series2014-5A, Class AR, (LIBOR USD 3 Month + 0.98%), 3.75%, 07/17/26			754		752,443
Series2014-5A, Class BR, (LIBOR USD 3 Month + 1.50%), 4.27%, 07/17/26			650		646,898
Avery Point VI CLO Ltd.(a)(b):
Series2015-6A, Class AR, (LIBOR USD 3 Month + 1.05%), 3.78%, 08/05/27			900		898,207
Series2015-6A, Class BR, (LIBOR USD 3 Month + 1.50%), 4.23%, 08/05/27			590		584,576
Avery Point VII CLO Ltd., Series2015-7A, Class A1, (LIBOR USD 3 Month + 1.50%), 4.29%, 01/15/28(a)(b)			630		630,472
B2R Mortgage Trust(b):
Series2015-1, Class A1, 2.52%, 05/15/48			102		101,419
Series2015-2, Class A, 3.34%, 11/15/48			253		252,571
Babson CLO Ltd., Series2015-IA, Class BR, (LIBOR USD 3 Month + 1.40%), 4.16%, 01/20/31(a)(b)			250		244,517
Bain Capital Credit CLO, Series2018-2A, Class A1, (LIBOR USD 3 Month + 1.08%), 3.84%, 07/19/31(a)(b)			330		326,051
Barings CLO Ltd., Series2018-3A, Class A1, (LIBOR USD 3 Month + 0.95%), 3.71%, 07/20/29(a)(b)			270		268,457
Battalion CLO VII Ltd., Series2014-7A, Class A1RR, (LIBOR USD 3 Month + 1.04%), 3.81%, 07/17/28(a)(b)			800		795,552
BDS Ltd., Series2019-FL3, Class A, (LIBOR USD 1 Month + 1.40%), 3.89%, 12/15/35(a)(b)			1,080		1,082,879
Benefit Street Partners CLOV-B Ltd., Series2018-5BA, Class A1A, (LIBOR USD 3 Month + 1.09%), 3.85%, 04/20/31(a)(b)			360		356,430
Benefit Street Partners CLO VII Ltd., Series 2015-VIIA, Class A1AR, (LIBOR USD 3 Month + 0.78%), 3.56%, 07/18/27(a)(b)			670		665,807
BlueMountain CLO Ltd.(a)(b):
Series2013-2A, Class A1R, (LIBOR USD 3 Month + 1.18%), 3.94%, 10/22/30			1,770		1,758,479
Series2015-3A, Class A1R, (LIBOR USD 3 Month + 1.00%), 3.76%, 04/20/31			250		246,812
BSPRT Issuer Ltd., Series2018-FL3, Class A, (LIBOR USD 1 Month + 1.05%), 3.53%, 03/15/28(a)(b)			324		323,324
Carlyle Global Market Strategies CLO Ltd.(a)(b):
Series2012-4A, Class AR, (LIBOR USD 3 Month + 1.45%), 4.21%, 01/20/29			5,830		5,833,336
Series2014-1A, Class A1R2, (LIBOR USD 3 Month + 0.97%), 3.74%, 04/17/31			800		788,477
Series2014-3RA, Class A1A, (LIBOR USD 3 Month + 1.05%), 3.81%, 07/27/31			3,360		3,312,192
Series2015-1A, Class BR, (LIBOR USD 3 Month + 1.50%), 4.26%, 04/20/27			250		248,555
Series2015-1A, Class CR, (LIBOR USD 3 Month + 2.00%), 4.76%, 04/20/27			340		339,490

SCHEDULES OF INVESTMENTS 15

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series2015-3A, Class A2R, (LIBOR USD 3 Month + 1.60%), 4.36%, 07/28/28	USD		530	$	527,510
Carlyle US CLO Ltd., Series2016-4A, Class A2R, (LIBOR USD 3 Month + 1.45%), 4.21%, 10/20/27(a)(b)			250		247,481
CBAM Ltd.(a)(b):
Series2017-1A, Class A1, (LIBOR USD 3 Month + 1.25%), 4.01%, 07/20/30			1,600		1,593,058
Series2017-2A, Class B1, (LIBOR USD 3 Month + 1.75%), 4.52%, 10/17/29			810		802,245
Cedar Funding II CLO Ltd., Series2013-1A, Class BR, (LIBOR USD 3 Month + 1.75%), 4.35%, 06/09/30(a)(b)			550		547,112
Cedar Funding VI CLO Ltd., Series2016-6A, Class AR, (LIBOR USD 3 Month + 1.09%), 3.85%, 10/20/28(a)(b)			2,980		2,965,428
Cedar Funding VIII CLO Ltd.(a)(b):
Series2017-8A, Class A1, (LIBOR USD 3 Month + 1.25%), 4.02%, 10/17/30			4,530		4,521,193
Series2017-8A, Class B, (LIBOR USD 3 Month + 1.70%), 4.47%, 10/17/30			750		739,327
Series2017-8A, Class C, (LIBOR USD 3 Month + 2.25%), 5.02%, 10/17/30			250		244,570
Cent CLO 17 Ltd., Series C17A, Class A1AR, (LIBOR USD 3 Month + 1.03%), 3.78%, 04/30/31(a)(b)			1,860		1,834,258
Cent CLO 24 Ltd., Series2015-24A, Class A1R, (LIBOR USD 3 Month + 1.07%), 3.86%, 10/15/26(a)(b)			920		918,267
CIFC Funding Ltd.(a)(b):
Series2014-4RA, Class A1A, (LIBOR USD 3 Month + 1.13%), 3.90%, 10/17/30			4,230		4,214,779
Series2018-1A, Class A, (LIBOR USD 3 Month + 1.00%), 3.78%, 04/18/31			1,230		1,210,592
Cumberland Park CLO Ltd., Series2015-2A, Class CR, (LIBOR USD 3 Month + 1.80%), 4.56%, 07/20/28(a)(b)			310		302,429
Deer Creek CLO Ltd., Series2017-1A, Class A, (LIBOR USD 3 Month + 1.18%), 3.94%, 10/20/30(a)(b)			500		497,142
Dryden 53 CLO Ltd., Series2017-53A, Class A, (LIBOR USD 3 Month + 1.12%), 3.91%, 01/15/31(a)(b)			4,900		4,853,525
Dryden XXV Senior Loan Fund, Series2012-25A, Class ARR, (LIBOR USD 3 Month + 0.90%), 3.69%, 10/15/27(a)(b)			3,240		3,225,452
Dryden XXVI Senior Loan Fund, Series2013-26A, Class AR, (LIBOR USD 3 Month + 0.90%), 3.69%, 04/15/29(a)(b)			330		326,823
Dryden XXVIII Senior Loan Fund, Series2013-28A, Class A1LR, (LIBOR USD 3 Month + 1.20%), 3.88%, 08/15/30(a)(b)			1,660		1,653,455
Flatiron CLO Ltd., Series2015-1A, Class AR, (LIBOR USD 3 Month + 0.89%), 3.68%, 04/15/27(a)(b)			780		778,386
Galaxy XXIX CLO Ltd.(a)(b):
Series2018-29A, Class B, (LIBOR USD 3 Month + 1.40%), 4.08%, 11/15/26			250		247,246
Series2018-29A, Class C, (LIBOR USD 3 Month + 1.68%), 4.36%, 11/15/26			350		344,685
GoldenTree Loan Opportunities IX Ltd., Series2014-9A, Class AR2, (LIBOR USD 3 Month + 1.11%), 3.86%, 10/29/29(a)(b)			420		419,146
Greystone Commercial Real Estate Notes Ltd., Series 2017-FL1A, Class A, (LIBOR USD 1 Month + 1.55%), 4.03%, 03/15/27(a)(b)			320		318,792
Greywolf CLO IV Ltd., Series2014-2A, Class BR, (LIBOR USD 3 Month + 2.35%), 5.12%, 01/17/27(a)(b)			250		250,023
GSAA Home Equity Trust, Series2006-5, Class 2A1, (LIBOR USD 1 Month + 0.07%), 2.56%, 03/25/36(a)			622		313,325
Halcyon Loan Advisors Funding Ltd., Series2015-2A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.85%, 07/25/27(a)(b)			3,000		2,998,341

Security		Par (000)		Value
Asset-Backed Securities (continued)
Highbridge Loan Management Ltd.(a)(b):
Series12A-18, Class A1B, (LIBOR USD 3 Month + 1.25%), 4.03%, 07/18/31	USD		250	$	248,829
Series6A-2015, Class A1R, (LIBOR USD 3 Month + 1.00%), 3.73%, 02/05/31			3,030		2,991,918
Home Partners of America Trust, Series2016-2, Class A, (LIBOR USD 1 Month + 1.15%), 3.63%, 10/17/33(a)(b)			186		185,743
ICG US CLO Ltd., Series2015-1A, Class A1R, (LIBOR USD 3 Month + 1.14%), 3.90%, 10/19/28(a)(b)			865		862,365
Invitation Homes Trust, Series 2018-SFR3, Class A, (LIBOR USD 1 Month + 1.00%), 3.48%, 07/17/37(a)(b)			683		681,772
LCM XXI LP, Series 21A, Class AR, (LIBOR USD 3 Month + 0.88%), 3.64%, 04/20/28(a)(b)			820		814,131
LoanCore Issuer Ltd., Series 2018-CRE1, Class A, (LIBOR USD 1 Month + 1.13%), 3.62%, 05/15/28(a)(b)			1,810		1,809,499
Madison Park Funding XIII Ltd., Series2014-13A, Class AR2, (LIBOR USD 3 Month + 0.95%), 3.71%, 04/19/30(a)(b)			1,090		1,081,450
Madison Park Funding XXVI Ltd., Series2017-26A, Class AR, (LIBOR USD 3 Month + 1.20%), 3.95%, 07/29/30(a)(b)			1,665		1,658,469
Marathon CRE Ltd., Series2018-FL1, Class A, (LIBOR USD 1 Month + 1.15%), 3.63%, 06/15/28(a)(b)			420		419,896
Marble Point CLO XI Ltd., Series2017-2A, Class A, (LIBOR USD 3 Month + 1.18%), 3.96%, 12/18/30(a)(b)			430		426,230
MidOcean Credit CLO III, Series2014-3A, Class A3A2, (LIBOR USD 3 Month + 0.97%), 3.73%, 04/21/31(a)(b)			480		471,284
Mid-State Trust VII, Series 7, Class A, 6.34%, 12/15/36			1,543		1,626,592
Mountain Hawk II CLO Ltd., Series2013-2A, Class BR, (LIBOR USD 3 Month + 1.60%), 4.36%, 07/20/24(a)(b)			931		931,478
MP CLO III Ltd., Series2013-1A, Class AR, (LIBOR USD 3 Month + 1.25%), 4.01%, 10/20/30(a)(b)			830		826,817
MP CLO VIII Ltd.(a)(b):
Series2015-2A, Class AR, (LIBOR USD 3 Month + 0.91%), 3.67%, 10/28/27			1,420		1,413,929
Series2015-2A, Class BR, (LIBOR USD 3 Month + 1.42%), 4.18%, 10/28/27			1,500		1,471,673
Navient Private Education Loan Trust, Series2014-CTA, Class B, (LIBOR USD 1 Month + 1.75%), 4.23%, 10/17/44(a)(b)			895		904,565
Neuberger Berman Loan Advisers CLO Ltd.,Series 2017-26A, Class A, (LIBOR USD 3 Month + 1.17%), 3.95%, 10/18/30(a)(b)			1,430		1,424,248
Oaktree CLO Ltd., Series2015-1A, Class A1R, (LIBOR USD 3 Month + 0.87%), 3.63%, 10/20/27(a)(b)			500		499,545
OCP CLO Ltd.(a)(b):
Series2014-5A, Class A1R, (LIBOR USD 3 Month + 1.08%), 3.84%, 04/26/31			140		138,081
Series2015-10A, Class BR, (LIBOR USD 3 Month + 1.85%), 4.61%, 10/26/27			380		369,520
Series2017-13A, Class A1A, (LIBOR USD 3 Month + 1.26%), 4.05%, 07/15/30			2,610		2,600,255
Series2017-14A, Class B, (LIBOR USD 3 Month + 1.95%), 4.59%, 11/20/30			250		239,994
Octagon Investment Partners18-R Ltd., Series2018-18A, Class A1A, (LIBOR USD 3 Month + 0.96%), 3.74%, 04/16/31(a)(b)			1,780		1,748,299
Octagon Investment Partners XVI Ltd., Series2013-1A, Class A1R, (LIBOR USD 3 Month + 1.02%), 3.79%, 07/17/30(a)(b)			2,755		2,712,703
Octagon Investment Partners XVII Ltd., Series2013-1A, Class A1R2, (LIBOR USD 3 Month + 1.00%), 3.77%, 01/25/31(a)(b)			2,390		2,354,821

16 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Octagon Investment Partners XXIII Ltd., Series2015-1A, Class CR, (LIBOR USD 3 Month + 1.85%), 4.64%, 07/15/27(a)(b)	USD		370	$	361,331
OFSI Fund VI Ltd., Series2014-6A, Class A2R, (LIBOR USD 3 Month + 1.13%), 3.92%, 03/20/25(a)(b)			2,460		2,437,563
OHA Credit Partners IX Ltd., Series2013-9A, Class A1R, (LIBOR USD 3 Month + 1.01%), 3.77%, 10/20/25(a)(b)			102		102,510
OHA Loan Funding Ltd., Series2013-2A, Class AR, (LIBOR USD 3 Month + 1.04%), 3.69%, 05/23/31(a)(b)			4,495		4,437,411
OneMain Financial Issuance Trust(b):
Series2015-1A, Class A, 3.19%, 03/18/26			63		63,196
Series2015-1A, Class B, 3.85%, 03/18/26			997		999,153
Series2016-2A, Class A, 4.10%, 03/20/28			156		156,193
OZLM Funding IV Ltd., Series2013-4A, Class A1R, (LIBOR USD 3 Month + 1.25%), 4.01%, 10/22/30(a)(b)			9,195		9,118,214
OZLM VIII Ltd., Series2014-8A, Class BRR, (LIBOR USD 3 Month + 2.20%), 4.66%, 10/17/29(a)(b)			340		332,341
OZLM XIV Ltd., Series2015-14A, Class A2AR, (LIBOR USD 3 Month + 1.70%), 4.49%, 01/15/29(a)(b)			2,110		2,097,245
Palmer Square CLO Ltd.(a)(b):
Series2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.81%, 04/18/31			850		839,582
Series2018-3A, Class A2, (LIBOR USD 3 Month + 1.35%), 4.03%, 08/15/26			776		764,055
Palmer Square Loan Funding Ltd.(a)(b):
Series2017-1A, Class A2, (LIBOR USD 3 Month + 1.30%), 4.09%, 10/15/25			1,760		1,739,389
Series2018-4A, Class A1, (LIBOR USD 3 Month + 0.90%), 3.58%, 11/15/26			650		647,532
Park Avenue Institutional Advisers CLO Ltd.(a)(b):
Series2017-1A, Class A1, (LIBOR USD 3 Month + 1.22%), 3.91%, 11/14/29			1,870		1,862,895
Series2017-1A, Class A2, (LIBOR USD 3 Month + 1.70%), 4.39%, 11/14/29			780		771,081
Progress Residential Trust(b):
Series 2015-SFR2, Class A, 2.74%, 06/12/32			776		770,862
Series 2017-SFR1, Class A, 2.77%, 08/17/34			738		731,209
Race Point IX CLO Ltd., Series2015-9A, Class A1AR, (LIBOR USD 3 Month + 1.21%), 4.00%, 10/15/30(a)(b)			720		717,047
Regatta VI Funding Ltd., Series2016-1A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.84%, 07/20/28(a)(b)			2,360		2,349,104
Rockford Tower CLO Ltd.(a)(b):
Series2017-2A, Class B, (LIBOR USD 3 Month + 1.75%), 4.54%, 10/15/29			860		851,617
Series2017-3A, Class A, (LIBOR USD 3 Month + 1.19%), 3.95%, 10/20/30			2,090		2,072,545
RomarkWM-R Ltd., Series2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.79%, 04/20/31(a)(b)			720		707,152
RR Ltd., Series2018-3A, Class A1R2, (LIBOR USD 3 Month + 1.09%), 3.88%, 01/15/30(a)(b)			670		662,984
Silver Creek CLO Ltd., Series2014-1A, Class CR, (LIBOR USD 3 Month + 2.30%), 5.06%, 07/20/30(a)(b)			500		493,947
SLM Private Credit Student Loan Trust, Series2004-B, Class A3, (LIBOR USD 3 Month + 0.33%), 2.94%, 03/15/24(a)			1,246		1,236,047
SLM Private Education Loan Trust(b):
Series2011-C, Class A2A, (LIBOR USD 1 Month + 3.25%), 5.74%, 10/17/44(a)			449		453,639
Series2013-A, Class B, 2.50%, 03/15/47			432		431,683
Series2013-B, Class B, 3.00%, 05/16/44			585		583,746
SMB Private Education Loan Trust, Series2015-B, Class B, 3.50%, 12/17/40(b)			990		994,991

Security		Par (000)		Value
Asset-Backed Securities (continued)
Sound Point CLO XV Ltd., Series2017-1A, Class A, (LIBOR USD 3 Month + 1.39%), 4.16%, 01/23/29(a)(b)	USD		260	$	260,146
Springleaf Funding Trust, Series2015-AA, Class B, 3.62%, 11/15/24(b)			1,445		1,445,483
Steele Creek CLO Ltd., Series2017-1A, Class A, (LIBOR USD 3 Month + 1.25%), 4.04%, 01/15/30(a)(b)			1,070		1,066,651
Symphony CLO XIX Ltd., Series2018-19A, Class A, (LIBOR USD 3 Month + 0.96%), 3.74%, 04/16/31(a)(b)			660		648,973
Symphony CLO XVII Ltd., Series2016-17A, Class AR, (LIBOR USD 3 Month + 0.88%), 3.67%, 04/15/28(a)(b)			880		875,615
THL Credit Wind River CLO Ltd., Series2016-1A, Class AR, (LIBOR USD 3 Month + 1.05%), 3.84%, 07/15/28(a)			1,120		1,116,509
TIAA CLO III Ltd., Series2017-2A, Class A, (LIBOR USD 3 Month + 1.15%), 3.93%, 01/16/31(a)(b)			910		900,879
Towd Point Mortgage Trust(b)(c)(d):
Series2019-SJ2, Class A2, 4.25%, 11/25/58			3,000		3,017,942
Series2019-SJ2, Class M1, 4.50%, 11/25/58			3,000		3,019,691
Union Pacific Railroad Co. Pass-Through Trust,Series 2014-1, 3.23%, 05/14/26			1,484		1,484,620
Venture 35 CLO Ltd., Series2018-35A, Class AS, (LIBOR USD 3 Month + 1.15%), 3.65%, 10/22/31(a)(b)			660		666,406
Venture CLO Ltd., Series2018-32A, Class A2A, (LIBOR USD 3 Month + 1.07%), 3.85%, 07/18/31(a)(b)			350		345,930
Venture XVIII CLO Ltd., Series2014-18A, Class AR, (LIBOR USD 3 Month + 1.22%), 4.01%, 10/15/29(a)(b)			3,230		3,230,735
Voya CLO Ltd., Series2017-4A, Class A1, (LIBOR USD 3 Month + 1.13%), 3.92%, 10/15/30(a)(b)			1,680		1,665,713
Westcott Park CLO Ltd., Series2016-1A, Class A, (LIBOR USD 3 Month + 1.53%), 4.29%, 07/20/28(a)(b)			1,150		1,149,976
YorkCLO-2 Ltd., Series2015-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 3.91%, 01/22/31(a)(b)			1,250		1,240,397
YorkCLO-3 Ltd.(a)(b):
Series2016-1A, Class AR, (LIBOR USD 3 Month + 1.25%), 4.01%, 10/20/29			520		518,969
Series2016-1A, Class BR, (LIBOR USD 3 Month + 1.75%), 4.51%, 10/20/29			680		674,031
Total Asset-Backed Securities — 6.1% (Cost: $186,437,440)					184,912,635
Corporate Bonds — 42.8%
Aerospace & Defense — 1.6%
Arconic, Inc., 5.40%, 04/15/21			2,830		2,918,579
BAE Systems Holdings, Inc.(b):
2.85%, 12/15/20			2,698		2,689,264
3.80%, 10/07/24			925		943,616
3.85%, 12/15/25			1,450		1,464,840
4.75%, 10/07/44			107		112,865
Boeing Co. (The):
3.38%, 06/15/46			225		205,290
3.83%, 03/01/59			185		178,755
General Dynamics Corp., 3.75%, 05/15/28			805		848,069
Harris Corp.:
2.70%, 04/27/20			522		520,045
3.83%, 04/27/25			200		204,921
4.40%, 06/15/28			3,860		4,059,487
5.05%, 04/27/45			155		170,953
L3 Technologies, Inc.:
4.95%, 02/15/21			360		371,925
3.85%, 06/15/23			1,930		1,989,033
3.95%, 05/28/24			725		744,575
3.85%, 12/15/26			3,110		3,165,014
4.40%, 06/15/28			275		288,560

SCHEDULES OF INVESTMENTS 17

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Aerospace & Defense (continued)
Lockheed Martin Corp.:
3.10%, 01/15/23	USD		2,700	$	2,729,928
2.90%, 03/01/25			980		977,377
3.55%, 01/15/26			661		682,201
3.60%, 03/01/35			4,355		4,301,579
4.50%, 05/15/36			262		284,153
4.07%, 12/15/42			2,365		2,409,099
3.80%, 03/01/45			330		326,036
Northrop Grumman Corp.:
3.25%, 08/01/23			765		774,175
2.93%, 01/15/25			3,570		3,520,905
3.25%, 01/15/28			859		844,656
3.85%, 04/15/45			803		770,305
4.03%, 10/15/47			1,185		1,169,170
Raytheon Co., 7.20%, 08/15/27			420		541,592
United Technologies Corp.:
1.95%, 11/01/21			3,190		3,125,902
3.65%, 08/16/23			1,050		1,077,786
4.13%, 11/16/28			1,885		1,958,357
5.40%, 05/01/35			526		590,862
4.50%, 06/01/42			2,710		2,801,093
					49,760,967
Air Freight & Logistics — 0.2%
FedEx Corp.:
3.40%, 01/14/22			755		765,083
3.90%, 02/01/35			1,562		1,463,860
3.88%, 08/01/42			3,206		2,821,235
4.10%, 04/15/43			995		903,737
					5,953,915
Airlines — 0.9%
Air Canada Pass-Through Trust(b):
Series2015-2, Class B, 5.00%, 12/15/23			468		478,422
Series2017-1, Class B, 3.70%, 01/15/26			10		9,211
Series2017-1, Class AA, 3.30%, 01/15/30			495		480,947
American Airlines Pass-Through Trust:
Series2014-1, Class B, 4.38%, 10/01/22			20		20,506
Series2015-1, Class B, 3.70%, 05/01/23			269		265,464
Series2015-2, Class B, 4.40%, 09/22/23			2,085		2,100,857
Series2016-1, Class B, 5.25%, 01/15/24			629		648,082
Series2016-2, Class B, 4.38%, 06/15/24(b)			886		889,851
Series2016-3, Class B, 3.75%, 10/15/25			22		21,455
Series2017-1, Class B, 4.95%, 02/15/25			234		240,569
Series2017-2, Class B, 3.70%, 10/15/25			456		444,857
Series2015-2, Class AA, 3.60%, 09/22/27			270		270,705
Series2016-3, Class AA, 3.00%, 10/15/28			927		895,946
Series2017-1, Class AA, 3.65%, 02/15/29			190		190,782
Series2017-2, Class AA, 3.35%, 10/15/29			544		531,270
Continental Airlines Pass-Through Trust, Series2012-1, Class B, 6.25%, 04/11/20			14		13,957
Delta Air Lines Pass-Through Trust, Series2019-1, Class AA, 3.20%, 04/25/24			990		1,003,327
Delta Air Lines, Inc.:
2.88%, 03/13/20			11,781		11,759,437
2.60%, 12/04/20			2,460		2,438,400
3.40%, 04/19/21			220		220,899
United Airlines Pass-Through Trust:
Series2014-1, Class B, 4.75%, 04/11/22			22		22,561
Series2014-2, Class B, 4.63%, 09/03/22			109		110,607
Series2016-2, Class B, 3.65%, 10/07/25			109		107,518
Series2016-1, Class B, 3.65%, 01/07/26			91		90,279
Series2018-1, Class B, 4.60%, 03/01/26			575		583,908
Series2015-1, Class AA, 3.45%, 12/01/27			246		244,898
Series2016-1, Class AA, 3.10%, 07/07/28			63		61,170

Security		Par (000)		Value
Airlines (continued)
Series2016-2, Class AA, 2.88%, 10/07/28	USD		354	$	338,844
Series2018-1, Class AA, 3.50%, 03/01/30			629		620,181
Series2019-1, Class AA, 4.15%, 08/25/31			645		667,805
US Airways Pass-Through Trust:
Series2012-2, Class B, 6.75%, 06/03/21			36		37,936
Series2013-1, Class B, 5.38%, 11/15/21			151		155,365
					25,966,016
Auto Components — 0.2%
Aptiv plc, 4.25%, 01/15/26			298		306,999
ZF North America Capital, Inc., 4.75%, 04/29/25(b)			4,599		4,466,738
					4,773,737
Automobiles — 0.8%
BMW US Capital LLC, 2.80%, 04/11/26(b)			740		709,785
Daimler Finance North America LLC(b):
3.10%, 05/04/20			2,575		2,579,633
2.30%, 02/12/21			3,005		2,968,800
3.35%, 05/04/21			3,060		3,078,826
General Motors Co.:
5.00%, 04/01/35			630		571,483
6.25%, 10/02/43			130		129,358
5.40%, 04/01/48(e)			170		155,394
Hyundai Capital America(b):
2.55%, 04/03/20			7,145		7,095,307
3.95%, 02/01/22			290		294,218
Volkswagen Group of America Finance LLC(b):
3.88%, 11/13/20			2,555		2,587,811
4.00%, 11/12/21			3,525		3,596,116
					23,766,731
Banks — 9.0%
ABN AMRO Bank NV, 2.65%, 01/19/21(b)			2,120		2,113,261
Banco Santander SA, 3.85%, 04/12/23			2,000		2,017,031
Bank of America Corp.:
(LIBOR USD 3 Month + 0.63%), 2.33%, 10/01/21(a)			13,750		13,622,112
(LIBOR USD 3 Month + 0.63%), 3.50%, 05/17/22(a)			1,115		1,128,054
3.30%, 01/11/23			2,966		3,003,656
4.20%, 08/26/24			1,330		1,376,513
(LIBOR USD 3 Month + 0.97%), 3.46%, 03/15/25(a)			1,290		1,302,840
3.88%, 08/01/25			4,051		4,194,275
4.45%, 03/03/26			3,414		3,557,924
Series L, 4.18%, 11/25/27			1,475		1,497,849
(LIBOR USD 3 Month + 1.58%), 3.82%, 01/20/28(a)			440		445,956
Series FF, (LIBOR USD 3 Month + 2.93%), 5.87%(a)(f)			370		375,420
(LIBOR USD 3 Month + 1.51%), 3.71%, 04/24/28(a)			1,615		1,622,234
(LIBOR USD 3 Month + 1.04%), 3.42%, 12/20/28(a)			6,140		6,003,993
(LIBOR USD 3 Month + 1.07%), 3.97%, 03/05/29(a)			1,470		1,496,746
Barclays plc:
(LIBOR USD 3 Month + 1.90%), 4.97%, 05/16/29(a)			3,590		3,711,223
4.95%, 01/10/47			617		617,119
BNP Paribas SA(b):
2.95%, 05/23/22			3,425		3,402,284
(LIBOR USD 3 Month + 2.24%), 4.70%, 01/10/25(a)			1,890		1,960,367
(USD Swap Semi 5 Year + 5.15%), 7.38%(a)(f)			510		541,237
Citibank NA:
3.40%, 07/23/21			8,540		8,651,313
3.65%, 01/23/24			4,220		4,354,168
Citigroup, Inc.:
2.50%, 07/29/19			5,149		5,146,396
2.90%, 12/08/21			5,950		5,948,425
(LIBOR USD 3 Month + 0.95%), 2.88%, 07/24/23(a)			1,779		1,767,653
4.40%, 06/10/25			1,890		1,956,694
3.20%, 10/21/26			2,610		2,556,324

18 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
4.45%, 09/29/27	USD		209	$	214,734
(LIBOR USD 3 Month + 1.56%), 3.89%, 01/10/28(a)			885		898,704
Citizens Bank NA:
2.25%, 03/02/20			4,956		4,932,905
2.65%, 05/26/22			4,875		4,833,908
Cooperatieve Rabobank UA, (LIBOR USD 3 Month + 10.87%), 11.00%(a)(b)(f)			1,625		1,655,469
Credit Suisse Group Funding Guernsey Ltd.:
2.75%, 03/26/20			2,789		2,785,225
3.13%, 12/10/20			7,540		7,559,173
3.80%, 09/15/22			1,250		1,273,375
Danske Bank A/S(b):
5.00%, 01/12/22			3,130		3,209,934
5.38%, 01/12/24			1,355		1,409,281
Discover Bank, 4.65%, 09/13/28			355		370,869
Fifth Third Bancorp, 3.65%, 01/25/24			2,300		2,355,418
Fifth Third Bank, 2.25%, 06/14/21			2,535		2,508,012
HSBC Holdings plc:
5.10%, 04/05/21			2,000		2,085,233
2.65%, 01/05/22			2,700		2,675,756
(LIBOR USD 3 Month + 1.21%), 3.80%, 03/11/25(a)			200		202,737
(USD Swap Rate 5 Year + 3.75%), 6.00%(a)(f)			3,360		3,331,440
Huntington National Bank (The), 3.25%, 05/14/21			1,940		1,958,307
ING Groep NV, 4.10%, 10/02/23			5,650		5,807,238
Intesa Sanpaolo SpA, 6.50%, 02/24/21(b)			1,200		1,255,549
JPMorgan Chase & Co.:
2.55%, 03/01/21			1,630		1,624,595
4.63%, 05/10/21			3,527		3,658,875
(LIBOR USD 3 Month + 0.61%), 3.51%, 06/18/22(a)			1,750		1,774,410
2.97%, 01/15/23			4,610		4,608,075
(LIBOR USD 3 Month + 0.89%), 3.80%, 07/23/24(a)			5,165		5,303,370
(LIBOR USD 3 Month + 1.00%), 4.02%, 12/05/24(a)			7,535		7,819,694
(LIBOR USD 3 Month + 1.34%), 3.78%, 02/01/28(a)			4,030		4,105,382
(LIBOR USD 3 Month + 1.38%), 3.54%, 05/01/28(a)			1,760		1,761,205
(LIBOR USD 3 Month + 1.26%), 4.20%, 07/23/29(a)			1,070		1,116,195
(LIBOR USD 3 Month + 1.33%), 4.45%, 12/05/29(a)			2,050		2,182,002
(LIBOR USD 3 Month + 1.36%), 3.88%, 07/24/38(a)			165		161,729
KeyBank NA, 3.35%, 06/15/21			1,075		1,091,184
KeyCorp, 4.15%, 10/29/25			750		789,545
Lloyds Banking Group plc:
4.45%, 05/08/25			1,210		1,255,843
3.75%, 01/11/27			1,942		1,909,967
Mitsubishi UFJ Financial Group, Inc.:
3.54%, 07/26/21			1,080		1,095,843
3.00%, 02/22/22			1,276		1,278,653
3.46%, 03/02/23			8,400		8,514,995
Mizuho Financial Group, Inc.:
2.63%, 04/12/21(b)			3,350		3,329,995
2.27%, 09/13/21			1,294		1,271,872
2.95%, 02/28/22			9,839		9,822,154
Nordea Bank Abp(b):
2.13%, 05/29/20			2,295		2,278,482
3.75%, 08/30/23			2,910		2,932,313
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.11%), 6.63%(a)(f)			1,070		1,067,325
Royal Bank of Scotland Group plc, (LIBOR USD 3 Month + 1.48%), 3.50%, 05/15/23(a)			4,395		4,363,781
Santander UK Group Holdings plc, 2.88%, 08/05/21			6,293		6,238,754
Santander UK plc, 5.00%, 11/07/23(b)			2,110		2,160,568
Standard Chartered plc, (LIBOR USD 3 Month + 1.15%), 4.25%, 01/20/23(a)(b)			3,890		3,951,769
Sumitomo Mitsui Trust Bank Ltd., 1.95%, 09/19/19(b)			4,535		4,516,824
SunTrust Banks, Inc., 4.00%, 05/01/25			1,000		1,046,263

Security		Par (000)		Value
Banks (continued)
Toronto-Dominion Bank (The), 3.50%, 07/19/23	USD		1,255	$	1,289,941
UBS Group Funding Switzerland AG(b):
2.95%, 09/24/20			7,375		7,372,563
(LIBOR USD 3 Month + 0.95%), 2.86%, 08/15/23(a)			5,500		5,418,580
(USD Swap Semi 5 Year + 4.34%), 7.00%(a)(f)			2,600		2,639,078
4.13%, 09/24/25			472		487,307
UniCredit SpA, 6.57%, 01/14/22(b)			6,360		6,655,219
US Bank NA, (LIBOR USD 3 Month + 0.29%), 3.10%, 05/21/21(a)			745		748,020
Wells Fargo & Co.:
2.60%, 07/22/20			1,098		1,096,331
2.55%, 12/07/20			1,391		1,386,496
2.50%, 03/04/21			5,755		5,727,102
3.50%, 03/08/22			1,115		1,135,804
2.63%, 07/22/22			3,390		3,365,056
3.75%, 01/24/24			4,890		5,032,188
(LIBOR USD 3 Month + 1.31%), 3.58%, 05/22/28(a)			1,480		1,485,702
Wells Fargo Bank NA, (LIBOR USD 3 Month + 0.49%), 3.33%, 07/23/21(a)			3,180		3,201,940
					275,767,323
Beverages — 0.6%
Anheuser-Busch Cos. LLC(b):
4.70%, 02/01/36			7,420		7,412,479
4.90%, 02/01/46			1,260		1,265,525
Anheuser-Busch InBev Worldwide, Inc.:
4.75%, 01/23/29			3,985		4,245,610
4.75%, 04/15/58			1,400		1,334,238
Constellation Brands, Inc., (LIBOR USD 3 Month + 0.70%), 3.38%, 11/15/21(a)			1,550		1,550,797
Keurig Dr. Pepper, Inc.(b):
3.55%, 05/25/21			1,175		1,187,647
4.06%, 05/25/23			1,007		1,035,928
PepsiCo, Inc., 4.00%, 05/02/47			700		737,139
					18,769,363
Biotechnology — 0.4%
AbbVie, Inc.:
2.30%, 05/14/21			860		850,369
3.60%, 05/14/25			1,730		1,733,878
4.50%, 05/14/35			1,994		1,950,494
4.40%, 11/06/42			640		591,585
Amgen, Inc., 4.40%, 05/01/45			1,037		1,016,539
Baxalta, Inc., 5.25%, 06/23/45			233		255,291
Celgene Corp.:
3.95%, 10/15/20			190		193,302
3.25%, 08/15/22			950		959,563
3.55%, 08/15/22			920		939,279
2.75%, 02/15/23			1,340		1,327,112
3.25%, 02/20/23			1,570		1,582,976
Gilead Sciences, Inc.:
4.60%, 09/01/35			960		1,007,627
4.00%, 09/01/36			20		19,628
4.50%, 02/01/45			916		927,098
					13,354,741
Building Products — 0.1%
Holcim US Finance Sarl & Cie SCS, 5.15%, 09/12/23(b)			2,064		2,175,972
Johnson Controls International plc, 5.13%, 09/14/45			490		511,333
					2,687,305
Capital Markets — 2.0%
Bank of New York Mellon Corp. (The), (LIBOR USD 3 Month + 1.07%), 3.44%, 02/07/28(a)			790		802,494
Charles Schwab Corp. (The), 3.20%, 03/02/27			1,070		1,076,185

SCHEDULES OF INVESTMENTS 19

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Capital Markets (continued)
CME Group, Inc., 3.75%, 06/15/28	USD		140	$	147,241
Credit Suisse Group AG, (LIBOR USD 3 Month + 1.24%), 4.21%, 06/12/24(a)(b)			1,660		1,700,477
Deutsche Bank AG:
2.70%, 07/13/20			3,990		3,948,465
2.95%, 08/20/20			1,495		1,481,977
4.25%, 02/04/21			2,875		2,886,021
4.25%, 10/14/21			860		863,861
Goldman Sachs Group, Inc. (The):
2.00%, 04/25/19			813		812,607
2.55%, 10/23/19			3,987		3,981,062
2.75%, 09/15/20			1,050		1,048,763
2.35%, 11/15/21			5,186		5,105,990
(LIBOR USD 3 Month + 1.05%), 2.91%, 06/05/23(a)			740		731,450
3.63%, 02/20/24			245		247,505
(LIBOR USD 3 Month + 1.51%), 3.69%, 06/05/28(a)			2,880		2,852,505
(LIBOR USD 3 Month + 1.30%), 4.22%, 05/01/29(a)			3,035		3,101,768
(LIBOR USD 3 Month + 1.37%), 4.02%, 10/31/38(a)			1,460		1,394,089
ING Bank NV, 5.80%, 09/25/23(b)			1,221		1,316,408
Intercontinental Exchange, Inc.:
4.00%, 10/15/23			1,150		1,207,665
3.75%, 12/01/25			1,450		1,505,876
3.75%, 09/21/28			1,500		1,553,919
Moody’s Corp., 2.75%, 12/15/21			846		845,899
Morgan Stanley:
2.75%, 05/19/22			3,860		3,836,669
6.25%, 08/09/26			880		1,019,279
3.63%, 01/20/27			2,520		2,525,889
(LIBOR USD 3 Month + 1.34%), 3.59%, 07/22/28(a)			6,050		6,004,266
(LIBOR USD 3 Month + 1.14%), 3.77%, 01/24/29(a)			5,250		5,269,096
(LIBOR USD 3 Month + 1.63%), 4.43%, 01/23/30(a)			140		147,452
Northern Trust Corp., (LIBOR USD 3 Month + 1.13%), 3.38%, 05/08/32(a)			1,705		1,670,603
Nuveen LLC, 4.00%, 11/01/28(b)			750		800,068
S&P Global, Inc., 4.00%, 06/15/25			245		257,810
State Street Corp., 2.65%, 05/19/26			983		961,390
					61,104,749
Chemicals — 0.3%
Air Liquide Finance SA, 2.50%, 09/27/26(b)			460		437,365
Dow Chemical Co. (The):
9.00%, 04/01/21			915		1,014,671
4.38%, 11/15/42			1,224		1,169,935
DowDuPont, Inc.:
4.49%, 11/15/25			4,360		4,644,193
5.42%, 11/15/48			2,380		2,714,848
SABIC Capital II BV, 4.00%, 10/10/23(b)			214		218,280
Sherwin-Williams Co. (The), 4.00%, 12/15/42			398		359,182
					10,558,474
Commercial Services & Supplies — 0.3%
RELX Capital, Inc.:
3.50%, 03/16/23			2,310		2,340,444
4.00%, 03/18/29			1,410		1,438,671
Republic Services, Inc.:
4.75%, 05/15/23			710		756,877
2.90%, 07/01/26			1,069		1,046,171
3.95%, 05/15/28			2,495		2,615,403
Waste Management, Inc.:
3.13%, 03/01/25			240		241,575
3.90%, 03/01/35			797		798,617
					9,237,758
Communications Equipment — 0.1%
Cisco Systems, Inc., 2.95%, 02/28/26			501		502,400

Security		Par (000)		Value
Communications Equipment (continued)
Juniper Networks, Inc., 3.30%, 06/15/20	USD		1,064	$	1,068,136
					1,570,536
Consumer Finance — 2.2%
AerCap Ireland Capital DAC, 4.63%, 10/30/20			3,330		3,408,252
American Express Co.:
2.50%, 08/01/22			1,404		1,387,591
3.70%, 08/03/23			2,055		2,105,890
4.20%, 11/06/25			2,850		3,013,837
American Express Credit Corp., 2.25%, 08/15/19			2,894		2,889,421
Capital One Financial Corp.:
2.40%, 10/30/20			2,295		2,281,860
3.45%, 04/30/21			693		701,411
3.90%, 01/29/24			2,890		2,954,464
3.75%, 03/09/27			765		752,496
Discover Financial Services, 4.10%, 02/09/27			893		892,495
Ford Motor Credit Co. LLC:
3.16%, 08/04/20			410		407,096
3.20%, 01/15/21			1,060		1,044,798
5.75%, 02/01/21			2,960		3,048,324
3.34%, 03/18/21			205		201,877
5.88%, 08/02/21			5,445		5,637,927
3.22%, 01/09/22			6,600		6,415,025
2.98%, 08/03/22			1,710		1,634,314
4.25%, 09/20/22			1,752		1,739,657
3.10%, 05/04/23			620		581,391
General Motors Financial Co., Inc.:
4.20%, 03/01/21			1,121		1,137,026
3.20%, 07/06/21			8,819		8,779,403
4.20%, 11/06/21			3,370		3,428,626
3.45%, 04/10/22			340		340,020
3.15%, 06/30/22			3,760		3,722,679
4.00%, 01/15/25			2,580		2,527,532
4.00%, 10/06/26			954		913,839
Hyundai Capital Services, Inc., 3.00%, 08/29/22(b)			1,650		1,629,746
Synchrony Financial:
2.70%, 02/03/20			742		741,014
4.38%, 03/19/24			395		400,093
Toyota Motor Credit Corp., 3.05%, 01/11/28			790		789,411
					65,507,515
Containers & Packaging — 0.0%
International Paper Co.:
6.00%, 11/15/41			350		390,536
4.80%, 06/15/44			618		609,048
					999,584
Diversified Consumer Services — 0.1%
Massachusetts Institute of Technology, 3.96%, 07/01/38			1,866		1,994,545
Diversified Financial Services — 0.3%
AXA Equitable Holdings, Inc., 3.90%, 04/20/23			210		215,135
GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/35			3,090		2,856,663
ORIX Corp., 2.90%, 07/18/22			1,555		1,554,844
Shell International Finance BV:
3.25%, 05/11/25			645		656,861
3.63%, 08/21/42			821		800,820
Synchrony Bank, 3.65%, 05/24/21			3,590		3,623,096
Woodside Finance Ltd., 3.65%, 03/05/25(b)			236		234,485
					9,941,904
Diversified Telecommunication Services — 1.5%
AT&T, Inc.:
0.00%, 11/27/22(b)(g)			3,000		2,679,371
3.40%, 05/15/25			510		504,653

20 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
4.13%, 02/17/26	USD		320	$	327,111
4.30%, 02/15/30			6,990		7,070,233
6.00%, 08/15/40			1,099		1,234,924
4.35%, 06/15/45			3,160		2,899,467
5.15%, 02/15/50			1,680		1,716,231
Deutsche Telekom International Finance BV, 4.38%, 06/21/28(b)			900		937,650
Telefonica Emisiones SAU, 4.67%, 03/06/38			1,445		1,379,191
TELUS Corp., 4.60%, 11/16/48			190		200,037
Verizon Communications, Inc.:
(LIBOR USD 3 Month + 0.55%), 3.21%, 05/22/20(a)			6,352		6,378,710
4.13%, 03/16/27			9,405		9,849,046
4.33%, 09/21/28			1,497		1,583,132
4.50%, 08/10/33			2,240		2,367,666
4.27%, 01/15/36			6,030		6,099,017
4.13%, 08/15/46			1,060		1,027,089
					46,253,528
Electric Utilities — 2.1%
AEP Texas, Inc., 3.95%, 06/01/28			2,070		2,156,579
AEP Transmission Co. LLC, 4.25%, 09/15/48			1,130		1,199,025
Alabama Power Co.:
3.75%, 03/01/45			360		348,424
3.70%, 12/01/47			590		574,912
4.30%, 07/15/48			915		970,032
Alliant Energy Finance LLC, 3.75%, 06/15/23(b)			430		438,533
Baltimore Gas & Electric Co.:
3.50%, 08/15/46			798		749,754
3.75%, 08/15/47			575		555,402
4.25%, 09/15/48			570		599,015
CenterPoint Energy Houston Electric LLC, 3.95%, 03/01/48			1,255		1,285,158
DTE Electric Co., Series A, 4.05%, 05/15/48			1,415		1,474,930
Duke Energy Carolinas LLC:
3.95%, 11/15/28			1,340		1,426,786
3.88%, 03/15/46			480		483,007
3.70%, 12/01/47			575		560,961
Duke Energy Florida LLC:
3.80%, 07/15/28			855		892,597
6.40%, 06/15/38			880		1,178,617
4.20%, 07/15/48			570		599,329
Duke Energy Progress LLC:
3.00%, 09/15/21			395		398,017
3.25%, 08/15/25			895		914,875
3.70%, 09/01/28			2,080		2,169,658
3.45%, 03/15/29			285		291,966
4.20%, 08/15/45			670		700,442
Emera US Finance LP:
2.15%, 06/15/19			1,705		1,701,653
2.70%, 06/15/21			2,554		2,530,843
Entergy Corp., 2.95%, 09/01/26			2,020		1,940,932
Entergy Louisiana LLC:
5.40%, 11/01/24			340		382,152
4.20%, 09/01/48			1,265		1,315,480
4.20%, 04/01/50			125		130,692
Eversource Energy, Series L, 2.90%, 10/01/24			2,430		2,411,148
Exelon Corp.:
2.45%, 04/15/21			470		464,547
4.95%, 06/15/35			400		424,708
4.45%, 04/15/46			1,530		1,576,666
FirstEnergy Transmission LLC, 4.35%, 01/15/25(b)			3,195		3,330,257
Florida Power & Light Co.:
5.69%, 03/01/40			200		251,834
3.95%, 03/01/48			785		813,817

Security		Par (000)		Value
Electric Utilities (continued)
4.13%, 06/01/48	USD		1,255	$	1,341,359
3.99%, 03/01/49			550		576,879
ITC Holdings Corp., 2.70%, 11/15/22			1,345		1,320,715
Kansas City Power & Light Co., 4.20%, 03/15/48			2,115		2,196,242
MidAmerican Energy Co., 4.40%, 10/15/44			740		807,643
Mid-Atlantic Interstate Transmission LLC, 4.10%, 05/15/28(b)			470		482,037
Northern States Power Co.:
3.40%, 08/15/42			1,325		1,258,550
4.00%, 08/15/45			560		575,565
4.20%, 09/01/48			405		415,302
Ohio Power Co., Series G, 6.60%, 02/15/33			1,165		1,499,868
Oncor Electric Delivery Co. LLC, 4.55%, 12/01/41			1,000		1,109,724
PacifiCorp, 4.13%, 01/15/49			340		351,419
Public Service Electric & Gas Co., 3.65%, 09/01/28			1,440		1,487,102
Southwestern Electric Power Co., Series M, 4.10%, 09/15/28			735		764,207
Tampa Electric Co.:
2.60%, 09/15/22			1,030		1,022,805
4.30%, 06/15/48			215		215,992
4.45%, 06/15/49			520		536,710
Trans-Allegheny Interstate Line Co., 3.85%, 06/01/25(b)			2,064		2,109,651
Union Electric Co., 3.50%, 03/15/29			905		927,460
Virginia Electric & Power Co.:
Series C, 2.75%, 03/15/23			1,365		1,362,183
Series A, 3.15%, 01/15/26			310		310,256
Series A, 3.50%, 03/15/27			2,683		2,731,921
4.00%, 01/15/43			760		753,096
4.45%, 02/15/44			794		842,623
Series B, 4.20%, 05/15/45			1,409		1,442,423
					63,684,480
Electrical Equipment — 0.0%
Eaton Corp., 2.75%, 11/02/22			1,023		1,019,141
Electronic Equipment, Instruments & Components — 0.2%
Amphenol Corp.:
3.20%, 04/01/24			1,036		1,035,366
4.35%, 06/01/29			85		89,856
Corning, Inc.:
3.70%, 11/15/23			180		182,294
4.38%, 11/15/57			2,825		2,619,821
Tyco Electronics Group SA:
3.45%, 08/01/24			315		319,134
3.13%, 08/15/27			670		646,465
					4,892,936
Energy Equipment & Services — 0.3%
Halliburton Co.:
3.80%, 11/15/25			6,425		6,566,678
5.00%, 11/15/45			33		35,091
Schlumberger Holdings Corp., 3.00%, 12/21/20(b)			2,393		2,403,082
					9,004,851
Entertainment — 0.4%
Historic TW, Inc., 6.63%, 05/15/29			190		231,254
NBCUniversal Media LLC:
5.95%, 04/01/41			1,550		1,905,891
4.45%, 01/15/43			870		901,050
Viacom, Inc.:
4.50%, 03/01/21			1,345		1,379,654
6.88%, 04/30/36			440		516,277
Warner Media LLC:
2.10%, 06/01/19			3,584		3,579,059
3.60%, 07/15/25			886		883,778
3.80%, 02/15/27			885		881,400

SCHEDULES OF INVESTMENTS 21

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Entertainment (continued)
7.63%, 04/15/31	USD		150	$	196,521
4.65%, 06/01/44			285		275,052
4.85%, 07/15/45			1,339		1,351,531
					12,101,467
Equity Real Estate Investment Trusts (REITs) — 0.6%
American Tower Corp.:
3.30%, 02/15/21			1,090		1,100,163
3.45%, 09/15/21			1,247		1,260,732
3.50%, 01/31/23			318		322,365
3.00%, 06/15/23			3,380		3,368,482
5.00%, 02/15/24			302		325,011
4.40%, 02/15/26			214		223,339
3.95%, 03/15/29			850		853,168
CC Holdings GS V LLC, 3.85%, 04/15/23			690		706,458
Crown Castle International Corp.:
3.40%, 02/15/21			572		576,723
2.25%, 09/01/21			2,097		2,066,831
3.20%, 09/01/24			4,245		4,212,554
GLP Capital LP, 5.25%, 06/01/25			2,013		2,108,617
Realty Income Corp.:
3.25%, 10/15/22			315		320,286
3.00%, 01/15/27			160		155,505
					17,600,234
Food & Staples Retailing — 0.2%
Kroger Co. (The), 2.65%, 10/15/26			2,450		2,254,936
Walgreens Boots Alliance, Inc.:
3.45%, 06/01/26			4,360		4,266,926
4.80%, 11/18/44			92		88,171
Walmart, Inc., 4.00%, 04/11/43			530		550,344
					7,160,377
Food Products — 0.2%
Campbell Soup Co., 8.88%, 05/01/21			560		618,776
Conagra Brands, Inc., 3.80%, 10/22/21			355		361,652
General Mills, Inc.:
3.20%, 04/16/21			1,010		1,018,758
4.00%, 04/17/25			805		832,962
Tyson Foods, Inc.:
3.90%, 09/28/23			510		525,389
3.95%, 08/15/24			1,500		1,544,654
3.55%, 06/02/27			1,145		1,125,669
5.10%, 09/28/48			480		488,528
					6,516,388
Gas Utilities — 0.0%
Atmos Energy Corp., 4.13%, 03/15/49			320		331,229
Health Care Equipment & Supplies — 0.8%
Abbott Laboratories, 3.75%, 11/30/26			4,402		4,575,978
Baxter International, Inc., 1.70%, 08/15/21			110		107,067
Becton Dickinson and Co.:
2.13%, 06/06/19			5,305		5,297,681
2.68%, 12/15/19			1,757		1,751,327
2.89%, 06/06/22			3,780		3,762,356
3.30%, 03/01/23			1,150		1,138,568
4.69%, 12/15/44			279		287,915
Covidien International Finance SA, 2.95%, 06/15/23			710		716,082
Edwards Lifesciences Corp., 4.30%, 06/15/28			395		414,256
Medtronic, Inc.:
3.50%, 03/15/25			1,030		1,062,124
4.38%, 03/15/35			4,510		4,924,147
					24,037,501

Security		Par (000)		Value
Health Care Providers & Services — 1.8%
Aetna, Inc.:
4.50%, 05/15/42	USD		694	$	656,671
4.13%, 11/15/42			548		491,003
4.75%, 03/15/44			565		551,217
AHS Hospital Corp., 5.02%, 07/01/45			1,507		1,764,128
Anthem, Inc.:
3.50%, 08/15/24			270		273,374
4.10%, 03/01/28			745		766,593
CHRISTUS Health, Series C, 4.34%, 07/01/28			767		819,783
Cigna Corp., 3.20%, 09/17/20(b)			6,055		6,087,639
Cigna Holding Co., 3.25%, 04/15/25			2,057		2,038,852
CVS Health Corp.:
3.70%, 03/09/23			3,400		3,454,673
4.00%, 12/05/23			1,795		1,844,488
4.10%, 03/25/25			2,965		3,044,001
4.78%, 03/25/38			740		732,817
5.13%, 07/20/45			3,860		3,922,876
5.05%, 03/25/48			2,280		2,296,883
HCA, Inc.:
6.50%, 02/15/20			2,830		2,912,251
5.88%, 03/15/22			1,380		1,480,450
4.75%, 05/01/23			540		565,854
5.00%, 03/15/24			770		816,348
5.25%, 04/15/25			4,100		4,402,493
Laboratory Corp. of America Holdings, 2.63%, 02/01/20			1,130		1,127,580
Mercy Health, Series 2018, 4.30%, 07/01/28			147		158,120
Montefiore Obligated Group, Series18-C, 5.25%, 11/01/48			886		925,718
PeaceHealth Obligated Group, Series 2018, 4.79%, 11/15/48			237		270,354
SSM Health Care Corp., Series 2018, 3.69%, 06/01/23			1,549		1,589,113
Sutter Health, Series 2018, 3.70%, 08/15/28			209		218,051
UnitedHealth Group, Inc.:
2.70%, 07/15/20			687		688,420
3.75%, 07/15/25			6,830		7,129,346
3.70%, 12/15/25			880		915,618
3.10%, 03/15/26			490		489,387
3.45%, 01/15/27			75		76,349
3.85%, 06/15/28			370		387,220
4.63%, 07/15/35			275		308,280
4.63%, 11/15/41			179		195,950
3.95%, 10/15/42			1,434		1,446,639
3.75%, 10/15/47			30		29,134
4.45%, 12/15/48			280		303,655
					55,181,328
Hotels, Restaurants & Leisure — 0.2%
McDonald’s Corp.:
3.70%, 01/30/26			1,155		1,192,339
4.70%, 12/09/35			1,340		1,436,216
3.70%, 02/15/42			490		448,155
3.63%, 05/01/43			200		181,130
4.88%, 12/09/45			1,285		1,389,952
4.45%, 03/01/47			690		703,315
					5,351,107
Household Durables — 0.2%
Lennar Corp., 4.13%, 01/15/22			3,020		3,046,425
Toll Brothers Finance Corp., 5.88%, 02/15/22			2,830		2,977,160
					6,023,585
Industrial Conglomerates — 0.0%
Honeywell International, Inc., 3.81%, 11/21/47			575		583,969

22 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Insurance — 0.6%
American International Group, Inc., 3.88%, 01/15/35	USD		85	$	77,829
Aon Corp., 4.50%, 12/15/28			2,865		3,023,789
Aon plc, 4.75%, 05/15/45			394		409,032
Berkshire Hathaway Finance Corp., 4.25%, 01/15/49			150		157,007
Hartford Financial Services Group, Inc. (The), 4.30%, 04/15/43			360		358,943
Marsh & McLennan Cos., Inc.:
3.50%, 12/29/20			825		835,971
4.05%, 10/15/23			565		587,514
3.88%, 03/15/24			2,200		2,281,853
3.50%, 06/03/24			2,194		2,236,865
3.50%, 03/10/25			730		748,408
3.75%, 03/14/26			74		76,211
4.38%, 03/15/29			295		312,167
4.35%, 01/30/47			159		161,145
4.20%, 03/01/48			980		972,110
Prudential Financial, Inc., 3.88%, 03/27/28			1,720		1,805,169
Travelers Cos., Inc. (The), 4.60%, 08/01/43			698		774,934
Trinity Acquisition plc, 4.40%, 03/15/26			955		990,883
Willis North America, Inc., 3.60%, 05/15/24			2,132		2,145,595
					17,955,425
Interactive Media & Services — 0.0%
Baidu, Inc., 4.38%, 05/14/24			755		784,014
Internet & Direct Marketing Retail — 0.0%
Alibaba Group Holding Ltd., 3.60%, 11/28/24			1,170		1,195,127
IT Services — 0.6%
DXC Technology Co., 2.88%, 03/27/20			1,056		1,055,344
Fidelity National Information Services, Inc.:
3.63%, 10/15/20			116		117,219
3.00%, 08/15/26			3,510		3,362,755
4.75%, 05/15/48			1,300		1,290,220
Fiserv, Inc.:
3.85%, 06/01/25			850		872,137
4.20%, 10/01/28			1,610		1,658,399
IBM Credit LLC, 3.45%, 11/30/20			1,135		1,148,484
International Business Machines Corp., 2.90%, 11/01/21			485		487,235
Total System Services, Inc.:
3.80%, 04/01/21			450		456,884
3.75%, 06/01/23			730		741,060
4.80%, 04/01/26			2,949		3,098,280
VeriSign, Inc., 4.63%, 05/01/23			1,250		1,267,188
Visa, Inc.:
3.15%, 12/14/25			585		593,889
4.15%, 12/14/35			939		1,023,409
4.30%, 12/14/45			520		573,808
					17,746,311
Life Sciences Tools & Services — 0.2%
Thermo Fisher Scientific, Inc.:
3.15%, 01/15/23			705		709,953
3.00%, 04/15/23			1,860		1,860,352
2.95%, 09/19/26			3,206		3,092,885
					5,663,190
Media — 1.6%
Charter Communications Operating LLC:
3.58%, 07/23/20			7,000		7,050,886
4.46%, 07/23/22			1,770		1,831,262
4.50%, 02/01/24			3,270		3,401,160
4.91%, 07/23/25			2,339		2,468,061
6.38%, 10/23/35			3,847		4,289,456
6.48%, 10/23/45			1,455		1,631,060

Security		Par (000)		Value
Media (continued)
Comcast Corp.:
3.30%, 10/01/20	USD		3,320	$	3,351,270
3.15%, 03/01/26			2,410		2,397,791
2.35%, 01/15/27			245		228,926
4.15%, 10/15/28			1,140		1,199,893
4.25%, 10/15/30			1,050		1,115,501
4.40%, 08/15/35			1,171		1,222,692
3.20%, 07/15/36			2,947		2,679,615
3.40%, 07/15/46			1,396		1,236,500
4.95%, 10/15/58			985		1,086,454
Cox Communications, Inc.(b):
3.15%, 08/15/24			4,371		4,351,158
3.35%, 09/15/26			269		262,128
Discovery Communications LLC:
4.38%, 06/15/21			1,140		1,171,193
3.95%, 06/15/25(b)			610		614,768
5.20%, 09/20/47			460		447,055
Fox Corp.(b):
4.03%, 01/25/24			495		513,159
4.71%, 01/25/29			800		857,755
Interpublic Group of Cos., Inc. (The):
3.50%, 10/01/20			400		403,448
3.75%, 10/01/21			215		218,736
Time Warner Cable LLC:
5.00%, 02/01/20			1,291		1,312,394
4.13%, 02/15/21			2,660		2,701,542
4.00%, 09/01/21			372		378,079
5.50%, 09/01/41			903		887,940
4.50%, 09/15/42			132		115,372
					49,425,254
Metals & Mining — 0.3%
Anglo American Capital plc(b):
3.63%, 09/11/24			1,755		1,739,076
4.75%, 04/10/27			1,700		1,732,377
ArcelorMittal, 4.55%, 03/11/26			640		654,033
Barrick Gold Corp., 5.25%, 04/01/42			585		632,607
BHP Billiton Finance USA Ltd., 4.13%, 02/24/42			620		650,743
Newmont Mining Corp., 3.50%, 03/15/22			2,210		2,240,572
Nucor Corp., 5.20%, 08/01/43			303		343,891
					7,993,299
Multi-Utilities — 0.2%
Ameren Illinois Co., 3.80%, 05/15/28			890		935,068
Consumers Energy Co., 4.05%, 05/15/48			625		661,040
DTE Energy Co., Series D, 3.70%, 08/01/23			730		747,321
NiSource, Inc.:
2.65%, 11/17/22			195		192,003
3.49%, 05/15/27			1,850		1,843,734
WEC Energy Group, Inc., 3.38%, 06/15/21			320		323,780
					4,702,946
Oil, Gas & Consumable Fuels — 5.1%
Anadarko Petroleum Corp.:
0.00%, 10/10/36(g)			2,000		887,583
6.20%, 03/15/40			550		617,359
Andeavor Logistics LP:
5.25%, 01/15/25			1,400		1,453,303
4.25%, 12/01/27			4,750		4,772,899
5.20%, 12/01/47			970		971,331
Antero Resources Corp.:
5.13%, 12/01/22			2,830		2,844,999
5.63%, 06/01/23			3,020		3,061,525
Apache Corp., 2.63%, 01/15/23			1,034		1,007,806

SCHEDULES OF INVESTMENTS 23

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
BP Capital Markets America, Inc.:
3.80%, 09/21/25	USD		1,940	$	2,011,163
3.12%, 05/04/26			1,320		1,317,008
Buckeye Partners LP, 4.88%, 02/01/21			2,755		2,822,648
Cimarex Energy Co.:
4.38%, 06/01/24			2,115		2,196,982
3.90%, 05/15/27			1,460		1,455,446
Concho Resources, Inc.:
4.38%, 01/15/25			3,950		4,060,331
3.75%, 10/01/27			4,030		3,997,107
Continental Resources, Inc.:
4.50%, 04/15/23			4,992		5,167,627
3.80%, 06/01/24			1,065		1,071,965
Devon Energy Corp., 5.85%, 12/15/25			1,350		1,531,842
Diamondback Energy, Inc., 4.75%, 11/01/24(b)			435		444,700
Enbridge, Inc.:
2.90%, 07/15/22			1,705		1,700,033
3.70%, 07/15/27			1,360		1,356,043
(LIBOR USD 3 Month + 3.42%), 5.50%, 07/15/77(a)			1,230		1,162,350
Energy Transfer Operating LP:
5.20%, 02/01/22			1,100		1,155,311
5.88%, 01/15/24			3,535		3,858,656
4.90%, 02/01/24			270		284,675
4.50%, 04/15/24			580		604,735
6.50%, 02/01/42			1,850		2,055,095
6.13%, 12/15/45			678		737,337
Energy Transfer Partners LP:
5.75%, 09/01/20			330		340,343
5.88%, 03/01/22			2,750		2,939,508
5.00%, 10/01/22			840		885,504
Enterprise Products Operating LLC:
4.45%, 02/15/43			1,742		1,749,318
5.10%, 02/15/45			408		446,830
EOG Resources, Inc., 4.15%, 01/15/26			859		909,401
Hess Corp., 5.80%, 04/01/47			600		624,492
Kinder Morgan Energy Partners LP:
6.38%, 03/01/41			210		243,761
5.00%, 03/01/43			585		585,716
Kinder Morgan, Inc.:
3.15%, 01/15/23			3,420		3,426,582
4.30%, 06/01/25			960		1,001,267
4.30%, 03/01/28			2,300		2,375,895
5.55%, 06/01/45			250		272,657
5.05%, 02/15/46			2,845		2,909,931
Marathon Oil Corp.:
2.70%, 06/01/20			2,300		2,289,273
2.80%, 11/01/22			2,850		2,814,438
Marathon Petroleum Corp.:
5.13%, 03/01/21			2,735		2,849,653
4.75%, 12/15/23(b)			4,080		4,294,581
5.85%, 12/15/45			1,225		1,312,311
MPLX LP:
4.00%, 02/15/25			3,150		3,208,451
4.88%, 06/01/25			1,290		1,373,099
4.13%, 03/01/27			2,450		2,465,433
5.20%, 03/01/47			624		633,164
5.50%, 02/15/49			75		79,999
NGPL PipeCo LLC, 4.38%, 08/15/22(b)			2,481		2,512,013
Northwest Pipeline LLC, 4.00%, 04/01/27			2,085		2,102,429
Pioneer Natural Resources Co., 3.95%, 07/15/22			230		236,632
Plains All American Pipeline LP, 3.65%, 06/01/22			230		231,449
Rockies Express Pipeline LLC, 5.63%, 04/15/20(b)			2,900		2,961,625

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Sabine Pass Liquefaction LLC:
5.63%, 04/15/23	USD		795	$	861,669
5.75%, 05/15/24			2,985		3,289,560
5.63%, 03/01/25			2,230		2,450,767
5.88%, 06/30/26			5,288		5,881,749
5.00%, 03/15/27			585		620,344
Spectra Energy Partners LP, 4.50%, 03/15/45			1,430		1,447,999
Sunoco Logistics Partners Operations LP:
5.35%, 05/15/45			772		755,149
5.40%, 10/01/47			1,290		1,288,433
Texas Eastern Transmission LP(b):
3.50%, 01/15/28			1,318		1,287,520
4.15%, 01/15/48			505		484,542
TransCanada PipeLines Ltd.:
4.88%, 01/15/26			3,705		4,006,334
4.25%, 05/15/28			1,145		1,195,055
5.85%, 03/15/36			213		242,728
6.10%, 06/01/40			777		918,466
Transcontinental Gas Pipe Line Co. LLC:
7.85%, 02/01/26			3,472		4,341,068
4.00%, 03/15/28			2,050		2,091,861
Transportadora de Gas Internacional SA ESP, 5.55%, 11/01/28(b)			200		216,219
Valero Energy Corp., 3.40%, 09/15/26			1,139		1,114,366
Western Midstream Operating LP:
5.38%, 06/01/21			5,000		5,182,918
4.00%, 07/01/22			4,360		4,421,860
4.65%, 07/01/26			736		745,549
Williams Cos., Inc. (The):
4.13%, 11/15/20			1,250		1,269,829
7.88%, 09/01/21			425		469,686
4.00%, 11/15/21			2,225		2,283,547
3.70%, 01/15/23			870		885,689
4.55%, 06/24/24			660		696,691
3.75%, 06/15/27			1,835		1,821,714
Series A, 7.50%, 01/15/31			665		835,263
5.75%, 06/24/44			390		428,969
					154,219,158
Paper & Forest Products — 0.1%
Georgia-Pacific LLC:
5.40%, 11/01/20(b)			775		805,620
3.73%, 07/15/23(b)			895		918,315
7.38%, 12/01/25			1,203		1,475,147
7.75%, 11/15/29			300		407,601
Suzano Austria GmbH, 6.00%, 01/15/29(b)			517		550,714
					4,157,397
Pharmaceuticals — 1.1%
Allergan Finance LLC, 3.25%, 10/01/22			4,990		4,990,026
Allergan Funding SCS:
3.80%, 03/15/25			4,125		4,178,773
4.55%, 03/15/35			1,420		1,390,692
Bayer US Finance II LLC(b):
3.38%, 07/15/24			206		200,737
2.85%, 04/15/25			1,500		1,380,017
3.60%, 07/15/42			828		635,345
Bayer US Finance LLC, 3.38%, 10/08/24(b)			327		319,703
Eli Lilly & Co., 4.15%, 03/15/59			1,570		1,615,056
GlaxoSmithKline Capital plc, 3.00%, 06/01/24			510		512,543
GlaxoSmithKline Capital, Inc., 3.88%, 05/15/28			690		723,498
Johnson & Johnson:
2.45%, 03/01/26			185		180,841
3.63%, 03/03/37			245		247,572

24 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)			Value
Pharmaceuticals (continued)
Merck & Co., Inc., 3.60%, 09/15/42	USD		200		$	194,920
Shire Acquisitions Investments Ireland DAC:
1.90%, 09/23/19			5,310			5,287,061
2.40%, 09/23/21			575			567,904
2.88%, 09/23/23			1,140			1,125,051
3.20%, 09/23/26			2,244			2,169,963
Takeda Pharmaceutical Co. Ltd.(b):
3.80%, 11/26/20			1,130			1,146,390
4.40%, 11/26/23			2,750			2,886,975
5.00%, 11/26/28			2,325			2,520,431
Wyeth LLC:
6.45%, 02/01/24			225			262,258
5.95%, 04/01/37			1,360			1,730,364
						34,266,120
Road & Rail — 0.7%
Ashtead Capital, Inc., 4.13%, 08/15/25(b)			3,000			2,947,500
Burlington Northern Santa Fe LLC:
3.00%, 04/01/25			145			146,203
4.15%, 04/01/45			1,669			1,742,002
4.70%, 09/01/45			355			396,297
CSX Corp.:
4.25%, 03/15/29			1,020			1,083,005
6.15%, 05/01/37			190			232,473
4.75%, 11/15/48			700			757,506
4.25%, 11/01/66			1,255			1,166,487
Norfolk Southern Corp.:
3.65%, 08/01/25			1,015			1,045,773
2.90%, 06/15/26			965			944,967
4.05%, 08/15/52			772			749,078
Penske Truck Leasing Co. LP, 3.40%, 11/15/26(b)			2,744	��		2,626,110
Ryder System, Inc., 3.75%, 06/09/23			110			112,621
Union Pacific Corp.:
3.15%, 03/01/24			910			923,515
2.75%, 03/01/26			212			206,592
3.38%, 02/01/35			2,390			2,239,062
3.60%, 09/15/37			1,490			1,425,059
3.80%, 10/01/51			680			638,057
3.88%, 02/01/55			1,224			1,127,888
						20,510,195
Semiconductors & Semiconductor Equipment — 2.3%
Analog Devices, Inc.:
2.50%, 12/05/21			2,030			2,011,292
3.90%, 12/15/25			283			288,111
3.50%, 12/05/26			1,630			1,616,106
5.30%, 12/15/45			481			537,393
Applied Materials, Inc.:
3.90%, 10/01/25			565			594,382
3.30%, 04/01/27			1,285			1,297,735
5.10%, 10/01/35			910			1,033,153
4.35%, 04/01/47			2,613			2,743,995
Broadcom Corp.:
2.38%, 01/15/20			6,086			6,053,441
3.00%, 01/15/22			7,602			7,565,224
2.65%, 01/15/23			1,163			1,132,159
3.88%, 01/15/27			405			386,907
Broadcom, Inc.(b):
3.13%, 04/15/21			4,855			4,849,271
3.13%, 10/15/22			3,490			3,474,051
KLA-Tencor Corp.:
4.10%, 03/15/29			3,175			3,231,343
5.00%, 03/15/49			1,575			1,667,087

Security		Par (000)		Value
Semiconductors & Semiconductor Equipment (continued)
Lam Research Corp.:
2.75%, 03/15/20	USD		1,081	$	1,080,051
2.80%, 06/15/21			555		555,079
3.75%, 03/15/26			1,690		1,720,600
4.88%, 03/15/49			1,600		1,680,975
NVIDIA Corp., 3.20%, 09/16/26			2,240		2,230,805
NXP BV(b):
4.13%, 06/15/20			3,200		3,240,352
4.13%, 06/01/21			7,065		7,200,648
4.63%, 06/15/22			575		594,895
3.88%, 09/01/22			3,848		3,902,372
4.88%, 03/01/24			2,345		2,475,898
QUALCOMM, Inc.:
2.90%, 05/20/24			2,580		2,536,140
4.65%, 05/20/35			2,430		2,503,942
4.80%, 05/20/45			872		885,255
Texas Instruments, Inc.:
2.25%, 05/01/23			460		453,733
4.15%, 05/15/48			425		456,135
					69,998,530
Software — 0.8%
Autodesk, Inc., 3.50%, 06/15/27			3,545		3,430,437
Microsoft Corp.:
3.50%, 02/12/35			2,108		2,136,542
3.45%, 08/08/36			3,150		3,180,665
3.70%, 08/08/46			2,928		2,987,778
Oracle Corp.:
2.50%, 10/15/22			195		193,937
3.40%, 07/08/24			935		956,155
2.65%, 07/15/26			125		120,920
3.90%, 05/15/35			1,497		1,530,368
4.00%, 07/15/46			1,232		1,238,321
4.00%, 11/15/47			120		120,711
4.38%, 05/15/55			826		870,896
VMware, Inc., 2.30%, 08/21/20			8,291		8,214,258
					24,980,988
Specialty Retail — 0.1%
Home Depot, Inc. (The):
3.90%, 12/06/28			160		170,018
5.88%, 12/16/36			1,000		1,258,297
3.50%, 09/15/56			275		252,554
Lowe’s Cos., Inc., 4.38%, 09/15/45			1,200		1,176,052
					2,856,921
Technology Hardware, Storage & Peripherals — 0.3%
Apple, Inc.:
3.00%, 02/09/24			2,553		2,587,786
3.85%, 05/04/43			2,498		2,523,056
3.45%, 02/09/45			630		599,388
Dell International LLC(b):
4.42%, 06/15/21			595		610,446
4.90%, 10/01/26			1,300		1,319,514
8.35%, 07/15/46			375		452,612
Seagate HDD Cayman, 4.25%, 03/01/22			535		536,459
					8,629,261
Thrifts & Mortgage Finance — 0.1%
BPCE SA, 3.00%, 05/22/22(b)			3,040		3,007,776
Tobacco — 0.5%
Altria Group, Inc.:
3.49%, 02/14/22			565		573,867
2.85%, 08/09/22			415		414,016
4.00%, 01/31/24			2,030		2,094,817

SCHEDULES OF INVESTMENTS 25

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Tobacco (continued)
4.40%, 02/14/26	USD		190	$	195,289
4.80%, 02/14/29			650		670,088
5.80%, 02/14/39			1,150		1,216,266
5.38%, 01/31/44			1,750		1,746,236
5.95%, 02/14/49			425		456,048
6.20%, 02/14/59			145		156,102
BAT International Finance plc, 3.95%, 06/15/25(b)			520		521,109
Reynolds American, Inc.:
4.45%, 06/12/25			5,695		5,854,070
5.85%, 08/15/45			574		589,167
					14,487,075
Trading Companies & Distributors — 0.0%
GATX Corp., 2.60%, 03/30/20			1,182		1,178,320
Wireless Telecommunication Services — 0.6%
Rogers Communications, Inc., 5.00%, 03/15/44			320		355,478
Sprint Spectrum Co. LLC(b):
3.36%, 09/20/21			3,447		3,445,841
4.74%, 03/20/25			7,610		7,695,612
Vodafone Group plc:
3.75%, 01/16/24			2,870		2,894,089
4.13%, 05/30/25			1,210		1,233,127
6.15%, 02/27/37			1,575		1,746,748
5.25%, 05/30/48			1,145		1,135,126
(USD Swap Semi 5 Year + 4.87%), 7.00%, 04/04/79(a)			950		964,004
					19,470,025
Total Corporate Bonds — 42.8% (Cost: $1,283,953,296)					1,304,684,616
Foreign Agency Obligations — 0.3%
Mexico — 0.3%
Petroleos Mexicanos:
6.38%, 02/04/21			224		231,168
6.88%, 08/04/26			671		699,383
6.50%, 03/13/27			8,681		8,728,746
5.35%, 02/12/28			606		562,368
5.63%, 01/23/46			904		744,896
6.75%, 09/21/47			111		101,726
					11,068,287
Total Foreign Agency Obligations — 0.3% (Cost: $10,976,075)					11,068,287
Foreign Government Obligations — 2.6%
Colombia — 0.4%
Republic of Colombia:
3.88%, 04/25/27			6,600		6,708,900
7.00%, 06/30/32	COP		18,649,400		5,919,666
					12,628,566
Hungary — 0.1%
Republic of Hungary, 5.38%, 03/25/24	USD		2,860		3,126,909
Indonesia — 0.4%
Republic of Indonesia:
4.10%, 04/24/28(e)			1,130		1,146,950
8.25%, 05/15/29	IDR		135,977,000		9,959,122
8.38%, 03/15/34			12,306,000		886,006
8.38%, 04/15/39			10,964,000		783,418
					12,775,496

Security		Par (000)		Value
Mexico — 0.5%
United Mexican States:
4.15%, 03/28/27	USD		11,841	$	12,030,456
7.50%, 06/03/27	MXN		78		390,291
8.50%, 05/31/29			559		2,952,282
7.75%, 11/23/34			42		208,363
10.00%, 11/20/36			80		474,050
5.75%, 10/12/2110	USD		580		594,500
					16,649,942
Oman — 0.0%
Oman Sovereign Sukuk SAOC, 5.93%, 10/31/25(b)			833		834,037
Panama — 0.1%
Republic of Panama, 3.88%, 03/17/28			2,070		2,152,500
Peru — 0.1%
Republic of Peru, 4.13%, 08/25/27			2,070		2,258,370
Philippines — 0.2%
Republic of the Philippines, 3.00%, 02/01/28			5,080		5,016,500
Qatar — 0.1%
State of Qatar(b):
4.00%, 03/14/29			965		995,017
4.82%, 03/14/49			617		648,621
					1,643,638
Russia — 0.3%
Russian Federation, 6.90%, 05/23/29	RUB		628,421		8,700,109
South Africa — 0.3%
Republic of South Africa:
6.25%, 03/31/36	ZAR		160,710		8,086,735
9.00%, 01/31/40			13,898		896,959
8.75%, 01/31/44			13,786		866,326
8.75%, 02/28/48			9,532		598,910
					10,448,930
Uruguay — 0.1%
Oriental Republic of Uruguay, 4.38%, 10/27/27	USD		2,680		2,823,380
Total Foreign Government Obligations — 2.6% (Cost: $79,348,895)					79,058,377
Municipal Bonds — 3.6%
American Municipal Power, Inc. (Combined Hydroelectric Project);
Series 2010B, RB, 7.83%, 02/15/41			350		527,653
Series 2009B, RB, 6.45%, 02/15/44			875		1,178,292
Arizona State University, Series 2017B, RB, 5.00%, 07/01/43			270		315,144
Bay Area Toll Authority, Series2010S-1, RB, 7.04%, 04/01/50			1,385		2,118,524
Berks County Industrial Development Authority (Tower Health Project);
Series 2017, RB, 5.00%, 11/01/47			420		472,420
Series 2017, RB, 5.00%, 11/01/50			390		437,389
Central Puget Sound Regional Transit Authority,Series 2015S-1, RB, 5.00%, 11/01/50			420		473,613
Chicago O’Hare International Airport, Series 2018C, RB, 4.47%, 01/01/49			835		917,247
City & County of Denver, Series 2016A, RB, 5.00%, 08/01/44			690		792,907
City of Atlanta;
Series 2015, RB, 5.00%, 11/01/40			200		227,894
Series 2018A, RB, 5.00%, 11/01/41			400		471,144
City of Aurora;
Series 2016, RB, 5.00%, 08/01/41			840		974,904

26 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Municipal Bonds (continued)
Series 2016, RB, 5.00%, 08/01/46	USD		340	$	392,707
City of Cleveland, Series 2018, GO, 5.00%, 12/01/43			1,255		1,460,883
City of Columbia, Series 2018, RB, 5.00%, 02/01/42			320		378,486
City of San Antonio Electric & Gas Systems, Series 2010A, RB, 5.81%, 02/01/41			815		1,079,199
Commonwealth of Massachusetts;
Series 2017F, GO, 5.00%, 11/01/40			1,350		1,588,423
Series 2018A, GO, 5.00%, 01/01/46			1,595		1,860,169
Series 2017F, GO, 5.00%, 11/01/46			2,575		3,004,021
Series 2018A, GO, 5.00%, 01/01/48			1,090		1,268,531
County of King, Series 2015A, RB, 5.00%, 07/01/47			430		479,360
District of Columbia, Series 2016A, GO, 5.00%, 06/01/41			2,925		3,377,614
Dutchess County Local Development Corp. (Health Quest Systems, Inc. Project), Series 2016B, RB, 5.00%, 07/01/46			805		901,519
Grand Parkway Transportation Corp. (Grand Parkway Project), Series 2018A, RB, 5.00%, 10/01/43			760		894,596
Health & Educational Facilities Authority of the State of Missouri, Series 2016A, RB, 3.65%, 01/15/46			270		272,508
Las Vegas Valley Water District, Series 2016A, GO, 5.00%, 06/01/46			3,815		4,360,087
Long Island Power Authority, Series 2017, RB, 5.00%, 09/01/47			1,145		1,319,292
Los Angeles Community College District, Series 2010E, GO, 6.60%, 08/01/42			800		1,152,672
Los Angeles Department of Water & Power System (Water System Revenue Bonds), Series 2010A, RB, 6.60%, 07/01/50			415		621,865
Los Angeles Unified School District, Series 2010I, GO, 6.76%, 07/01/34			1,580		2,102,253
Louisiana Public Facilities Authority, Series 2018E, RB, 5.00%, 07/01/48			290		328,825
Maryland Community Development Administration, Series 2018A, RB, 3.85%, 09/01/33			370		391,282
Maryland Stadium Authority (Baltimore City Public Schools Construction & Revitalization Program), Series 2016, RB, 5.00%, 05/01/41			380		433,230
Massachusetts Development Finance Agency;
Series2018J-2, RB, 5.00%, 07/01/43			210		238,379
Series2018J-2, RB, 5.00%, 07/01/48			600		677,832
Series2018J-2, RB, 5.00%, 07/01/53			590		660,794
Massachusetts Housing Finance Agency;
Series 2014B, RB, 4.50%, 12/01/39			220		229,819
Series 2014B, RB, 4.60%, 12/01/44			225		235,215
Series 2015A, RB, 4.50%, 12/01/48			275		289,701
Massachusetts Port Authority, Series 2016B, RB, 5.00%, 07/01/43			380		430,947
Metropolitan Atlanta Rapid Transit Authority, Series 2015B, RB, 5.00%, 07/01/45			330		381,698
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center), Series 2016A, RB, 5.00%, 07/01/40			210		235,227
Metropolitan St Louis Sewer District, Series 2017A, RB, 5.00%, 05/01/47			540		629,656
Metropolitan Transportation Authority;
Series 2010A, RB, 6.67%, 11/15/39			200		269,904
Series 2010E, RB, 6.81%, 11/15/40			610		831,887
Series 2015A,Sub-Series2015A-1, RB, 5.00%, 11/15/45			200		222,466
Michigan State Housing Development Authority;
Series 2018B, RB, 3.55%, 10/01/33			250		257,350

Security		Par (000)		Value
Municipal Bonds (continued)
Series 2018A, RB, 4.00%, 10/01/43	USD		240	$	248,518
Series 2018A, RB, 4.05%, 10/01/48			110		113,356
Series 2018A, RB, 4.15%, 10/01/53			560		577,562
Municipal Electric Authority of Georgia (Plant Vogtle Units 3&4 Units Project), Series 2010A, RB, 6.64%, 04/01/57			323		363,504
New Jersey Transportation Trust Fund Authority, Series 2009B, RB, 6.88%, 12/15/39			1,260		1,268,795
New Jersey Turnpike Authority, Series 2009F, RB, 7.41%, 01/01/40			496		745,002
New York City Housing Development Corp.;
Series2018C-1-A, RB, 3.70%, 11/01/38			260		266,445
Series2018C-1-B, RB, 3.85%, 11/01/43			780		800,249
Series2014C-1-A, RB, 4.20%, 11/01/44			3,490		3,589,640
Series2018C-1-A, RB, 4.00%, 11/01/53			830		847,555
New York City Transitional Finance Authority Future Tax Secured, Series 2018,Sub-SeriesC-4, RB, 3.55%, 05/01/25			1,205		1,252,839
New York City Water & Sewer System;
Series 2010GG, RB, 5.72%, 06/15/42			1,720		2,288,202
Series 2011EE, RB, 5.38%, 06/15/43			4,120		4,364,522
Series 2011AA, RB, 5.44%, 06/15/43			410		528,962
Series 2011EE, RB, 5.50%, 06/15/43			4,935		5,246,744
Series 2011CC, RB, 5.88%, 06/15/44			330		451,120
Series 2018CC, RB, 5.00%, 06/15/48			1,250		1,449,713
New York State Dormitory Authority, Series 2010H, RB, 5.39%, 03/15/40			320		386,717
New York Transportation Development Corp. (Delta Air Lines, Inc. Laguardia Airport Terminals C&D Redevelopment Project), Series 2018, RB, 5.00%, 01/01/30			1,365		1,608,516
Northeast Ohio Regional Sewer District, Series 2014, RB, 5.00%, 11/15/49			3,045		3,428,274
Port Authority of New York & New Jersey, Series 181, RB, 4.96%, 08/01/46			1,305		1,591,069
Port of Seattle, Series 2018A, RB, 5.00%, 05/01/43			220		249,306
Rutgers The State University of New Jersey, Series 2010H, RB, 5.67%, 05/01/40			1,770		2,195,278
Salt River Project Agricultural Improvement & Power District, Series 2015A, RB, 5.00%, 12/01/45			840		955,214
San Diego County Regional Airport Authority, Series 2017A, RB, 5.00%, 07/01/47			390		452,108
State of California;
Series 2018, GO, 4.60%, 04/01/38			2,870		3,057,583
Series 2009, GO, 7.55%, 04/01/39			920		1,397,222
Series 2009, GO, 7.30%, 10/01/39			420		607,753
State of Illinois;
Series 2018A, GO, 5.00%, 05/01/20			330		339,379
Series 2017D, GO, 5.00%, 11/01/22			190		204,845
Series 2017D, GO, 5.00%, 11/01/24			1,050		1,148,280
Series 2017A, GO, 5.00%, 12/01/24			210		229,866
Series 2017D, GO, 5.00%, 11/01/25			2,820		3,108,937
Series 2017D, GO, 5.00%, 11/01/26			1,060		1,169,880
Series 2003, GO, 5.10%, 06/01/33			3,525		3,463,735
State of Texas;
Series 2016, GO, 5.00%, 04/01/40			310		358,025
Series 2016, GO, 5.00%, 04/01/43			500		574,895
State of Washington, Series 2018C, GO, 5.00%, 02/01/39			1,935		2,295,258
State of West Virginia, Series 2018B, GO, 5.00%, 12/01/40			200		237,938
Triborough Bridge & Tunnel Authority, Series 2017A, RB, 5.00%, 11/15/47			2,135		2,482,877

SCHEDULES OF INVESTMENTS 27

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Municipal Bonds (continued)
University of California;
Series 2009R, RB, 5.77%, 05/15/43	USD		5,285	$	6,729,496
Series 2012AD, RB, 4.86%, 05/15/2112			219		246,384
University of California Medical Center, Series 2016L, RB, 5.00%, 05/15/47			370		419,909
University of Texas, Series 2017A, RB, 3.38%, 07/01/47			1,285		1,256,075
Utah Transit Authority, Series 2039, RB, 5.94%, 06/15/39			1,455		1,873,414
Virginia Small Business Financing Authority (Transform 66 P3 Project), Series 2017, RB, 5.00%, 12/31/52			590		644,481
Washington Metropolitan Area Transit Authority, Series 2017B, RB, 5.00%, 07/01/36			240		284,050
Total Municipal Bonds — 3.6% (Cost: $105,376,611)					109,565,020
Non-Agency Mortgage-Backed Securities — 3.8%
Collateralized Mortgage Obligations — 0.6%
CHL Mortgage Pass-Through Trust, Series2004-29, Class 1A1, 3.03%, 02/25/35(d)			338		321,045
CIM Trust, Series 2019-INV1, Class A1, 4.00%, 02/25/49(b)(d)			4,420		4,492,302
JPMorgan Mortgage Trust, Series2017-3, Class 1A6, 3.00%, 08/25/47(b)(d)			5,432		5,287,557
Mortgage Loan Resecuritization Trust, Series2009-RS1, Class A85, 2.83%, 04/16/36(b)(d)			7,229		6,423,911
MortgageIT Trust, Series2004-1, Class A1, 3.27%, 11/25/34(d)			618		605,801
Structured Asset Securities Corp. Assistance Loan Trust, Series2003-AL1, Class A, 3.36%, 04/25/31(b)			305		302,471
					17,433,087
Commercial Mortgage-Backed Securities — 3.0%
Americold LLC, Series 2010-ARTA, Class C, 6.81%, 01/14/29(b)			500		524,232
AOA Mortgage Trust, Series 2015-1177, Class C, 3.01%, 12/13/29(b)(d)			1,550		1,524,217
AREIT Trust, Series 2018-CRE1, Class A, 3.33%, 02/14/35(b)(c)(d)			154		152,252
Ashford Hospitality Trust, Series 2018-ASHF, Class D, 4.58%, 04/15/35(b)(d)			810		809,995
Atrium Hotel Portfolio Trust, Series 2017-ATRM, Class D, 4.43%, 12/15/36(b)(d)			4,050		4,044,887
Aventura Mall Trust, Series2013-AVM, Class D, 3.74%, 12/05/32(b)(d)			500		505,713
BAMLL Commercial Mortgage Securities Trust(b)(d):
Series2017-SCH, Class CL, 3.98%, 11/15/32			1,450		1,450,000
Series2017-SCH, Class DL, 4.48%, 11/15/32			1,490		1,490,000
Series 2018-DSNY, Class D, 4.18%, 09/15/34			630		628,905
Series2019-AHT, Class C, 4.05%, 03/15/34			450		450,000
Banc of America Commercial Mortgage Trust,Series 2007-1, Class AMFX, 5.42%, 01/15/49(d)			116		116,197
Bancorp Commercial Mortgage Trust (The),Series 2018-CR3, Class A, 3.33%, 01/15/33(b)(d)			517		513,188
BANK, Series 2018-BN13, Class A5, 4.22%, 08/15/61(d)			160		172,252
BBCMS Mortgage Trust(b)(d):
Series 2018-TALL, Class A, 3.21%, 03/15/37			232		229,820
Series 2018-TALL, Class D, 3.93%, 03/15/37			600		596,240
BBCMS Trust, Series 2015-SRCH, Class A1, 3.31%, 08/10/35(b)			1,119		1,133,910
BB-UBS Trust, Series 2012-SHOW, Class E, 4.03%, 11/05/36(b)(d)			260		253,308

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Bear Stearns Commercial Mortgage Securities Trust2007-TOP26, Series2007-T26, Class AM, 5.46%, 01/12/45(d)	USD		223	$	222,200
Benchmark Mortgage Trust:
Series2018-B3, Class D, 3.06%, 04/10/51(b)			130		113,304
Series2018-B5, Class A4, 4.21%, 07/15/51			320		344,089
Series2019-B10, Class 3CCA, 1.00%, 03/15/62(b)(d)			1,113		1,090,123
Series2019-B9, Class A5, 4.02%, 03/15/52			82		87,026
Series2019-B9, Class C, 4.97%, 03/15/52(d)			678		725,934
BWAY Mortgage Trust(b):
Series 2013-1515, Class A2, 3.45%, 03/10/33			710		723,795
Series 2013-1515, Class C, 3.45%, 03/10/33			2,810		2,784,005
Series 2013-1515, Class E, 3.72%, 03/10/33			100		98,946
BXP Trust(b)(d):
Series2017-CC, Class D, 3.55%, 08/13/37			210		204,135
Series2017-GM, Class D, 3.42%, 06/13/39			140		135,989
CAMB Commercial Mortgage Trust, Series 2019-LIFE, Class D, 4.23%, 12/15/37(a)(b)			1,185		1,187,451
CCRESG Commercial Mortgage Trust, Series 2016-HEAT, Class D, 5.49%, 04/10/29(b)(d)			200		203,711
CCUBS Commercial Mortgage Trust, Series2017-C1, Class A4, 3.54%, 11/15/50			167		169,983
CD Mortgage Trust:
Series2006-CD3, Class AM, 5.65%, 10/15/48			1,767		1,825,377
Series2017-CD3, Class A4, 3.63%, 02/10/50			280		289,261
Series2017-CD4, Class A4, 3.51%, 05/10/50(d)			10		10,246
CFCRE Commercial Mortgage Trust:
Series2016-C3, Class A3, 3.87%, 01/10/48			110		114,314
Series2018-TAN, Class C, 5.29%, 02/15/33(b)			840		866,618
CGDBB Commercial Mortgage Trust(b)(d):
Series 2017-BIOC, Class A, 3.27%, 07/15/32			1,200		1,200,001
Series 2017-BIOC, Class D, 4.08%, 07/15/32			900		901,130
Citigroup Commercial Mortgage Trust:
Series 2013-375P, Class C, 3.52%, 05/10/35(b)(d)			245		245,432
Series 2014-GC19, Class C, 5.10%, 03/10/47(d)			120		126,919
Series2016-C1, Class D, 4.95%, 05/10/49(b)(d)			110		107,277
Series2016-P3, Class C, 4.83%, 04/15/49(d)			501		526,223
Series2016-P3, Class D, 2.80%, 04/15/49(b)(d)			230		190,522
Series2017-C4, Class A4, 3.47%, 10/12/50			290		296,068
COMM Mortgage Trust, Series 2017-COR2, Class A3, 3.51%, 09/10/50			270		275,087
Commercial Mortgage Pass-Through Certificates, Series 2014-CR14, Class A4, 4.24%, 02/10/47(d)			600		633,372
Commercial Mortgage Trust:
Series 2014-CR15, Class C, 4.74%, 02/10/47(d)			70		74,355
Series 2014-CR16, Class A4, 4.05%, 04/10/47			1,534		1,607,338
Series 2014-CR17, Class A5, 3.98%, 05/10/47			831		870,056
Series 2014-CR18, Class A4, 3.55%, 07/15/47			130		133,207
Series 2014-CR19, Class A5, 3.80%, 08/10/47			440		457,842
Series 2014-LC15, Class A4, 4.01%, 04/10/47			320		335,127
Series 2014-UBS4, Class C, 4.63%, 08/10/47(d)			551		558,195
Series 2015-CR25, Class A4, 3.76%, 08/10/48			760		788,848
Series 2015-LC19, Class A4, 3.18%, 02/10/48			420		423,961
Series 2015-LC19, Class C, 4.26%, 02/10/48(d)			1,160		1,186,278
Series 2015-LC19, Class D, 2.87%, 02/10/48(b)			810		715,938
Series 2015-LC23, Class A4, 3.77%, 10/10/48			100		103,962
Series 2016-667M, Class D, 3.18%, 10/10/36(b)(d)			440		408,192
Series 2017-COR2, Class D, 3.00%, 09/10/50(b)			4,150		3,634,607
Core Industrial Trust(b):
Series 2015-TEXW, Class A, 3.08%, 02/10/34			3,374		3,399,118
Series 2015-TEXW, Class D, 3.85%, 02/10/34(d)			440		443,633
CSAIL Commercial Mortgage Trust:
Series2015-C2, Class A4, 3.50%, 06/15/57			270		276,163

28 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2018-CX11, Class A5, 4.03%, 04/15/51(d)	USD		730	$	768,871
CSMC Trust(b):
Series 2015-GLPB, Class A, 3.64%, 11/15/34			1,119		1,149,123
Series2016-MFF, Class A, 4.08%, 11/15/33(d)			173		173,976
Series 2017-PFHP, Class A, 3.43%, 12/15/30(d)			530		528,157
Series 2017-TIME, Class A, 3.65%, 11/13/39			230		231,977
CSWF, Series2018-TOP, Class A, 3.48%, 08/15/35(b)(d)			312		311,138
DBUBS Mortgage Trust(b):
Series 2011-LC1A, Class E, 5.70%, 11/10/46(d)			1,310		1,356,991
Series 2017-BRBK, Class A, 3.45%, 10/10/34			1,080		1,102,509
Eleven Madison Mortgage Trust, Series 2015-11MD, Class A, 3.55%, 09/10/35(b)(d)			350		359,419
GPMT Ltd., Series2018-FL1, Class A, 3.39%, 11/21/35(b)(d)			536		534,930
GS Mortgage Securities Corp. II(b):
Series 2005-ROCK, Class A, 5.37%, 05/03/32			800		899,694
Series 2013-KING, Class D, 3.44%, 12/10/27(d)			1,150		1,144,697
GS Mortgage Securities Corp. Trust(b):
Series 2016-RENT, Class C, 4.07%, 02/10/29(d)			395		397,910
Series 2017-500K, Class D, 3.78%, 07/15/32(d)			360		358,537
Series 2017-GPTX, Class A, 2.86%, 05/10/34			570		566,692
Series 2018-HULA, Class D, 4.28%, 07/15/25(d)			280		280,173
GS Mortgage Securities Trust:
Series 2014-GC20, Class B, 4.53%, 04/10/47(d)			400		404,887
Series 2015-GC32, Class C, 4.41%, 07/10/48(d)			790		813,117
Series2015-GS1, Class A3, 3.73%, 11/10/48			150		155,469
Series2017-GS6, Class A3, 3.43%, 05/10/50			300		304,027
Series2017-GS7, Class A4, 3.43%, 08/10/50			403		407,994
Series2017-GS7, Class D, 3.00%, 08/10/50(b)			150		133,048
Series2017-GS7, Class E, 3.00%, 08/10/50(b)			50		42,808
HMH Trust, Series2017-NSS, Class A, 3.06%, 07/05/31(b)			1,890		1,885,853
Hudson Yards Mortgage Trust, Series 2016-10HY, Class A, 2.84%, 08/10/38(b)			660		645,262
IMT Trust(b):
Series 2017-APTS, Class AFX, 3.48%, 06/15/34			440		449,515
Series 2017-APTS, Class DFX, 3.50%, 06/15/34(d)			730		721,374
InTown Hotel Portfolio Trust, Series 2018-STAY, Class A, 3.18%, 01/15/33(b)(d)			150		149,103
JPMBB Commercial Mortgage Securities Trust:
Series2014-C21, Class A5, 3.77%, 08/15/47			450		467,593
Series2014-C26, Class A4, 3.49%, 01/15/48			753		770,595
Series2015-C33, Class D1, 4.12%, 12/15/48(b)(d)			553		532,801
JPMCC Commercial Mortgage Securities Trust:
Series2017-JP5, Class D, 4.65%, 03/15/50(b)(d)			520		506,603
Series2017-JP6, Class A5, 3.49%, 07/15/50			270		276,086
Series2017-JP7, Class B, 4.05%, 09/15/50			90		92,221
JPMorgan Chase Commercial Mortgage Securities Trust:
Series2012-CBX, Class A4FL, 3.78%, 06/15/45(b)(d)			110		112,206
Series2014-C20, Class A5, 3.80%, 07/15/47			480		499,351
Series2015-JP1, Class D, 4.24%, 01/15/49(d)			770		737,812
Series2015-JP1, Class E, 4.24%, 01/15/49(b)(d)			299		277,871
Series2015-UES, Class C, 3.62%, 09/05/32(b)(d)			990		992,763
Series 2016-NINE, Class A, 2.85%, 10/06/38(b)(d)			1,330		1,300,597
Series 2017-MAUI, Class A, 3.32%, 07/15/34(b)(d)			330		328,756
Series 2017-MAUI, Class D, 4.44%, 07/15/34(b)(d)			130		130,080
MAD Mortgage Trust, Series 2017-330M, Class D, 3.71%, 08/15/34(b)(d)			300		299,921
Merrill Lynch Mortgage Trust, Series 2005-MKB2, Class F, 6.32%, 09/12/42(b)(d)			100		101,764
Morgan Stanley Bank of America Merrill Lynch Trust:
Series2014-C16, Class A5, 3.89%, 06/15/47			1,120		1,170,038
Series2015-C23, Class A4, 3.72%, 07/15/50			248		256,996

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series2015-C23, Class D, 4.13%, 07/15/50(b)(d)	USD		424	$	398,576
Series2015-C25, Class C, 4.53%, 10/15/48(d)			320		332,457
Series2015-C26, Class D, 3.06%, 10/15/48(b)			653		575,906
Series2017-C33, Class C, 4.56%, 05/15/50(d)			585		587,313
Morgan Stanley Capital Barclays Bank Trust,Series 2016-MART, Class A, 2.20%, 09/13/31(b)			200		197,217
Morgan Stanley Capital I, Series2017-HR2, Class D, 2.73%, 12/15/50			1,360		1,134,084
Morgan Stanley Capital I Trust:
Series2006-T21, Class AJ, 5.27%, 10/12/52(d)			34		33,635
Series2007-T27, Class AJ, 5.95%, 06/11/42(d)			385		406,198
Series2014-CPT, Class E, 3.45%, 07/13/29(b)(d)			350		349,192
Series2017-H1, Class A5, 3.53%, 06/15/50			120		122,626
Series2017-H1, Class C, 4.28%, 06/15/50(d)			730		724,066
Series2017-H1, Class D, 2.55%, 06/15/50(b)			2,440		1,972,545
Series 2017-JWDR, Class D, 4.43%, 11/15/34(b)(d)			1,280		1,282,392
Series 2019-AGLN, Class D, 4.25%, 03/15/34(b)(d)			1,700		1,700,000
Series2019-L2, Class A4, 4.07%, 03/15/52			403		428,674
Morgan Stanley Capital I, Inc.:
Series2018-H3, Class A5, 4.18%, 07/15/51			190		203,449
Series2018-H3, Class C, 4.85%, 07/15/51(d)			730		763,859
Series2018-H3, Class D, 3.00%, 07/15/51(b)			510		430,721
Natixis Commercial Mortgage Securities Trust,Series 2018-FL1, Class A, 3.43%, 06/15/35(b)(d)			190		188,123
Prima Capital CRE Securitization Ltd., Series2015-4A, Class C, 4.00%, 08/24/49(b)(c)			220		219,340
Resource Capital Corp. Ltd.(b)(d):
Series 2017-CRE5, Class A, 3.28%, 07/15/34			58		57,665
Series 2017-CRE5, Class B, 4.48%, 07/15/34			266		263,504
VNDO Mortgage Trust, Series 2013-PENN, Class D, 3.95%, 12/13/29(b)(d)			150		150,428
Waldorf Astoria Boca Raton Trust, Series 2016-BOCA, Class A, 3.83%, 06/15/29(b)(d)			1,495		1,494,960
Wells Fargo Commercial Mortgage Trust:
Series 2014-LC18, Class A5, 3.41%, 12/15/47			130		132,329
Series2015-C27, Class C, 3.89%, 02/15/48			425		412,454
Series2015-C28, Class A4, 3.54%, 05/15/48			220		225,123
Series2015-C31, Class A4, 3.70%, 11/15/48			250		258,787
Series 2015-NXS2, Class A5, 3.77%, 07/15/58(d)			890		923,786
Series 2015-NXS4, Class A4, 3.72%, 12/15/48			150		154,960
Series 2015-NXS4, Class D, 3.60%, 12/15/48(d)			181		170,544
Series2015-P2, Class A4, 3.81%, 12/15/48			510		531,940
Series 2016-NXS5, Class D, 4.88%, 01/15/59(d)			2,717		2,644,311
Series2017-C38, Class A5, 3.45%, 07/15/50			547		554,414
Series2017-C39, Class C, 4.12%, 09/15/50			160		157,432
Series2017-C39, Class D, 4.35%, 09/15/50(b)(d)			120		114,364
Series 2017-HSDB, Class A, 3.35%, 12/13/31(b)(d)			397		395,946
Series 2018-1745, Class A, 3.75%, 06/15/36(b)(d)			210		217,179
Series2018-C44, Class D, 3.00%, 05/15/51(b)			260		209,000
Series2018-C45, Class C, 4.73%, 06/15/51			130		132,909
Series2019-C49, Class A5, 4.02%, 03/15/52			531		560,214
WFRBS Commercial Mortgage Trust:
Series2011-C3, Class A3FL, 3.43%, 03/15/44(b)(d)			16		16,460
Series2014-C21, Class A5, 3.68%, 08/15/47			485		501,475
					93,172,336
Interest Only Commercial Mortgage-Backed Securities — 0.2%
245 Park Avenue Trust, Series 2017-245P, Class XA, 0.15%, 06/05/37(b)(d)			11,000		153,890
Banc of America Commercial Mortgage Trust(d):
Series 2017-BNK3, Class XB, 0.63%, 02/15/50			4,185		185,883
Series 2017-BNK3, Class XD, 1.29%, 02/15/50(b)			2,000		169,640
BBCMS Trust, Series 2015-SRCH, Class XA, 0.96%, 08/10/35(b)(d)			7,280		454,272

SCHEDULES OF INVESTMENTS 29

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Interest Only Commercial Mortgage-Backed Securities (continued)
BB-UBS Trust, Series 2012-SHOW, Class XA, 0.60%, 11/05/36(b)(d)	USD		65,905	$	2,117,126
Benchmark Mortgage Trust, Series2019-B9, Class XA, 1.05%, 03/15/52			4,959		412,688
CFCRE Commercial Mortgage Trust(d):
Series2016-C4, Class XA, 1.73%, 05/10/58			2,142		197,606
Series2016-C4, Class XB, 0.73%, 05/10/58			2,030		95,410
Commercial Mortgage Trust(d):
Series2013-CR6, Class XA, 1.06%, 03/10/46			18,440		548,776
Series2015-3BP, Class XA, 0.06%, 02/10/35(b)			40,878		225,238
Series 2018-COR3, Class XD, 1.75%, 05/10/51(b)			770		99,323
Core Industrial Trust, Series 2015-TEXW, Class XA, 0.77%, 02/10/34(b)(d)			5,876		109,687
CSAIL Commercial Mortgage Trust, Series 2017-CX10, Class XB, 0.14%, 11/15/50(d)			3,170		52,883
DBJPM Mortgage Trust, Series2017-C6, Class XD, 1.00%, 06/10/50(d)			3,040		189,453
GS Mortgage Securities Corp. II, Series 2013-KING, Class XA, 0.73%, 12/10/27(b)(d)			29,623		97,273
JPMBB Commercial Mortgage Securities Trust,Series 2014-C22, Class XA, 0.87%, 09/15/47(d)			1,028		37,911
JPMDB Commercial Mortgage Securities Trust,Series 2016-C4, Class XC, 0.75%, 12/15/49(b)(d)			1,800		86,551
JPMorgan Chase Commercial Mortgage Securities Trust(d):
Series 2013-LC11, Class XB, 0.51%, 04/15/46			4,040		82,494
Series2016-JP3, Class XC, 0.75%, 08/15/49(b)			4,330		200,046
Morgan Stanley Bank of America Merrill Lynch Trust(d):
Series2015-C22, Class XA, 1.10%, 04/15/48			1,015		48,040
Series2016-C31, Class XA, 1.43%, 11/15/49			973		75,472
Morgan Stanley Capital I Trust(d):
Series2017-H1, Class XD, 2.20%, 06/15/50(b)			3,030		455,045
Series2019-L2, Class XA, 1.20%, 03/15/52			2,059		171,146
Morgan Stanley Capital I, Inc., Series2018-H4, Class XA, 0.87%, 12/15/51(d)			3,208		214,014
Olympic Tower Mortgage Trust, Series2017-OT, Class XA, 0.38%, 05/10/39(b)(d)			10,700		313,938
One Market Plaza Trust(b)(d):
Series 2017-1MKT, Class XCP, 0.09%, 02/10/32			17,050		69,905
Series 2017-1MKT, Class XNCP, 0.00%, 02/10/32(c)			3,410		34
UBS Commercial Mortgage Trust, Series2018-C14, Class XA, 1.01%, 12/15/51(d)			1,218		92,603
Wells Fargo Commercial Mortgage Trust(d):
Series 2016-BNK1, Class XD, 1.26%, 08/15/49(b)			1,180		87,768
Series2018-C44, Class XA, 0.76%, 05/15/51			3,035		165,306
					7,209,421
TotalNon-Agency Mortgage-Backed Securities — 3.8% (Cost: $116,510,786)					117,814,844
		Beneficial Interest (000)
Other Interests — 0.0%(c)(h)(i)(j)
Capital Markets — 0.0%
Lehman Brothers Holdings, Inc.			16,030		—
Total Other Interests — 0.0%					—

Security		Par (000)		Value
Capital Trusts — 0.3%
Capital Markets — 0.2%(f)(k)
Bank of New York Mellon Corp. (The), Series F, 4.62%(j)	USD		2,494	$	2,356,830
State Street Corp., Series H, 5.63%			2,280		2,297,100
					4,653,930
Entertainment — 0.1%
NBCUniversal Enterprise, Inc., 5.25%(b)(f)(j)			3,610		3,664,150
Total Capital Trusts — 0.3% (Cost: $8,414,549)					8,318,080
U.S. Government Sponsored Agency Securities — 40.5%
Agency Obligations — 0.1%
Federal National Mortgage Association, 6.63%, 11/15/30			1,500		2,065,599
Collateralized Mortgage Obligations — 0.0%
Federal Home Loan Mortgage Corp.:
Series 1591, Class PK, 6.35%, 10/15/23			322		340,181
Series 2996, Class MK, 5.50%, 06/15/35			9		9,375
Federal National Mortgage Association:
Series2005-29, Class AT, 4.50%, 04/25/35			4		4,298
Series2005-29, Class WB, 4.75%, 04/25/35			123		126,635
Series2005-48, Class AR, 5.50%, 02/25/35			49		48,876
Series2005-62, Class CQ, 4.75%, 07/25/35			74		74,899
					604,264
Commercial Mortgage-Backed Securities — 0.6%
Federal Home Loan Mortgage Corp.:
Series2018-K77, Class B, 4.16%, 05/25/51(b)			180		183,357
Series K058, Class A2, 2.65%, 08/25/26			140		138,484
Series K064, Class A2, 3.22%, 03/25/27			339		347,380
Series K076, Class A2, 3.90%, 04/25/28			298		320,197
Series KJ20, Class A2, 3.80%, 12/25/25			240		251,959
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes(k):
Series K077, Class A2, 3.85%, 05/25/28			450		481,951
Series K083, Class A2, 4.05%, 09/25/28			900		978,720
Federal Home Loan Mortgage Corp. Variable Rate Notes:
Series2016-K54, Class B, 4.05%, 04/25/48(b)(k)			300		306,460
Series2017-K64, Class B, 3.98%, 05/25/50(b)(k)			664		674,327
Series2018-K80, Class B, (LIBOR USD 1 Month + 0.00%), 4.23%, 08/25/50(a)(b)			340		348,131
Series 2018-SB52, Class A10F, 3.48%, 06/25/28(k)			577		593,041
Series 2018-SB53, Class A10F, 3.66%, 06/25/28(k)			343		354,285
Series K063, Class A2, 3.43%, 01/25/27(k)			1,130		1,174,400
Series K085, Class A2, 4.06%, 10/25/28(k)			265		288,522
Series KL4F, Class A2AS, 3.68%, 10/25/25(k)			382		395,770
Series KW06, Class A2, 3.80%, 06/25/28(k)			240		254,304
Federal National Mortgage Association ACES Variable Rate Notes(k):
Series2006-M2, Class A2A, 5.27%, 10/25/32			7,182		7,872,687
Series2017-M14, Class A2, 2.88%, 11/25/27			700		696,158
Series2017-M7, Class A2, 2.96%, 02/25/27			1,294		1,296,055
Series2018-M14, Class A2, 3.58%, 08/25/28			712		743,828
Series2019-M1, Class A2, 3.56%, 09/25/28			380		397,198
Government National Mortgage Association:
Series2015-97, Class VA, 2.25%, 12/16/38			251		235,242
Series2016-158, Class VA, 2.00%, 03/16/35			161		147,406
					18,479,862

30 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)			Value
Interest Only Commercial Mortgage-Backed Securities — 0.2%
Federal Home Loan Mortgage Corp. Variable Rate Notes(k):
Series KW01, Class X1, 0.97%, 01/25/26	USD		2,280		$	121,886
Series KW03, Class X1, 0.85%, 06/25/27			2,113			111,119
Federal National Mortgage Association ACES Variable Rate Notes, Series2013-M5, Class X2, 2.21%, 01/25/22(k)			6,530			187,805
Government National Mortgage Association Variable Rate Notes:
Series2012-23, 0.57%, 06/16/53(k)			1,033			24,493
Series2013-191, 0.74%, 11/16/53(k)			852			29,322
Series2013-30, 0.80%, 09/16/53(k)			3,033			124,888
Series2013-63, 0.79%, 09/16/51(k)			4,472			235,238
Series2013-78, 0.79%, 10/16/54(k)			3,502			150,179
Series2015-171, 0.87%, 11/16/55(k)			1,530			90,464
Series2015-22, 0.73%, 03/16/55(k)			2,815			141,931
Series2015-37, 0.83%, 10/16/56(k)			574			32,453
Series2015-48, 0.69%, 02/16/50(k)			1,438			64,989
Series2016-110, 1.03%, 05/16/58(k)			4,538			352,140
Series2016-113, (LIBOR USD 1 Month + 0.00%), 1.18%, 02/16/58(a)			2,067			188,593
Series2016-119, (LIBOR USD 1 Month + 0.00%), 1.12%, 04/16/58(a)			2,099			174,461
Series2016-128, 0.95%, 09/16/56(k)			3,255			254,327
Series2016-13, 0.92%, 04/16/57(k)			3,290			212,122
Series2016-152, 0.93%, 08/15/58(k)			5,579			423,127
Series2016-158, (LIBOR USD 1 Month + 0.00%), 0.91%, 06/16/58(a)			2,209			159,259
Series2016-162, 1.00%, 09/16/58(k)			5,557			449,479
Series2016-165, 0.96%, 12/16/57(k)			1,606			127,006
Series2016-175, 0.92%, 09/16/58(k)			2,632			191,523
Series2016-26, 0.96%, 02/16/58(k)			8,178			584,503
Series2016-34, 0.99%, 01/16/58(k)			2,241			172,966
Series2016-35, 0.89%, 03/16/58(k)			3,067			212,501
Series2016-67, 1.17%, 07/16/57(k)			1,719			137,987
Series2016-87, 1.00%, 08/16/58(k)			7,045			530,609
Series2016-92, 1.01%, 04/16/58(k)			2,005			145,449
Series2016-96, 0.98%, 12/16/57(k)			4,090			305,598
Series2016-97, 1.04%, 07/16/56(k)			2,371			194,807
Series2017-100, 0.81%, 05/16/59(k)			2,440			165,224
Series2017-7, 0.97%, 12/16/58(k)			2,737			214,931
Series2018-106, 0.49%, 04/16/60(k)			2,550			140,277
						6,651,656
Mortgage-Backed Securities — 39.6%
Federal Home Loan Mortgage Corp.:
2.50%, 01/01/29 - 04/01/31			8,152			8,127,294
2.50%, 04/15/34(l)			6,049			6,014,974
3.00%, 09/01/27 - 12/01/46			18,742			18,815,229
3.00%, 04/15/34 - 04/15/49(l)			43,179			43,109,183
3.50%, 04/15/34 - 04/15/49(l)			10,791			10,996,509
3.50%, 11/01/41 - 01/01/48			51,798			53,009,311
4.00%, 08/01/40 - 08/01/47			18,567			19,394,913
4.00%, 04/15/49(l)			29,813			30,688,175
4.50%, 02/01/39 - 08/01/48			15,281			16,165,333
4.50%, 04/15/49(l)			4,019			4,194,238
5.00%, 07/01/35 - 11/01/41			4,335			4,674,664
5.00%, 04/15/49(l)			1,722			1,823,437
5.50%, 05/01/19 - 06/01/41			2,848			3,118,654
6.00%, 11/01/28 - 12/01/32			6			6,476
8.00%, 11/01/22			—	(m)		319
Federal National Mortgage Association:
2.00%, 10/01/31 - 03/01/32			4,513			4,394,627
2.50%, 09/01/27 - 02/01/33			21,693			21,598,140

Security		Par (000)			Value
Mortgage-Backed Securities (continued)
3.00%, 04/01/28 - 03/01/47	USD		91,132		$	91,429,512
3.00%, 04/25/34 - 04/25/49(l)			4,991			5,018,427
3.50%, 08/01/27 - 01/01/48			103,253			105,669,474
3.50%, 04/25/34 - 04/25/49(l)			12,260			12,475,358
4.00%, 08/01/33 - 08/01/48			137,283			143,388,154
4.00%, 04/25/34 - 05/25/49(l)			3,159			3,251,365
4.50%, 02/01/25 - 07/01/48			33,114			34,983,035
4.50%, 04/25/49 - 05/25/49(l)			211,464			220,235,598
5.00%, 07/01/27 - 02/01/49			46,489			49,367,217
5.00%, 04/25/49(l)			2,205			2,331,133
5.50%, 10/01/21 - 04/01/41			6,601			7,210,511
6.00%, 01/01/21 - 06/01/41			9,450			10,410,733
6.50%, 05/01/40			1,996			2,282,279
7.00%, 06/01/32			13			14,238
Government National Mortgage Association:
3.00%, 12/20/44 - 12/20/46			44,669			44,947,626
3.00%, 04/15/49(l)			4,281			4,298,893
3.50%, 01/15/42 - 10/20/46			16,857			17,286,800
3.50%, 04/15/49(l)			69,258			70,755,908
4.00%, 04/20/39 - 10/20/46			5,828			6,066,014
4.00%, 04/15/49 - 05/15/49(l)			72,793			75,112,069
4.50%, 12/20/39 - 09/20/48			9,344			9,832,308
4.50%, 04/15/49(l)			25,321			26,298,727
5.00%, 12/15/38 - 07/20/41			5,866			6,280,408
5.00%, 04/15/49 - 05/15/49(l)			7,300			7,623,694
5.50%, 03/15/32 - 11/15/33			6			6,133
5.50%, 04/15/49(l)			4,400			4,645,801
6.00%, 12/15/36			100			107,886
7.50%, 11/15/29			—	(m)		385
						1,207,461,162
Total U.S. Government Sponsored Agency Securities — 40.5% (Cost: $1,229,165,785)						1,235,262,543
U.S. Treasury Obligations — 20.8%
U.S. Treasury Bonds:
4.25%, 05/15/39			3,750			4,688,379
4.50%, 08/15/39			3,642			4,702,306
4.38%, 11/15/39			3,655			4,644,420
3.13%, 02/15/43			14,232			15,079,805
2.88%, 05/15/43 - 11/15/46			18,369			18,639,558
3.63%, 08/15/43			13,583			15,605,593
3.75%, 11/15/43			14,415			16,898,772
3.00%, 02/15/47			2,589			2,686,593
3.00%, 08/15/48(e)			15,230			15,765,430
3.38%, 11/15/48			2,789			3,103,961
U.S. Treasury Notes:
1.25%, 08/31/19(e)			36,493			36,304,833
1.00%, 10/15/19			36,493			36,206,473
1.63%, 06/30/20 - 10/31/23			65,687			64,703,584
2.63%, 08/31/20 - 05/15/21(e)			93,389			93,854,001
1.13%, 06/30/21			25,545			24,923,338
2.25%, 07/31/21 - 02/15/27			69,526			69,356,330
2.75%, 09/15/21 - 08/31/25			29,845			30,505,425
2.13%, 09/30/21			25,545			25,461,181
1.88%, 04/30/22			25,545			25,269,593
2.75%, 08/31/23(e)			48,440			49,476,919
2.00%, 04/30/24 - 11/15/26			68,018			66,940,623
2.88%, 08/15/28			9,755			10,135,293
Total U.S. Treasury Obligations — 20.8% (Cost: $626,249,298)						634,952,410
Total Long-Term Investments — 120.8% (Cost: $3,646,432,735)						3,685,636,812

SCHEDULES OF INVESTMENTS 31

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Shares		Value
Short-Term Securities — 1.7%(n)(o)
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.37%			50,781,147	$	50,781,147
Total Short-Term Securities — 1.7% (Cost: $50,781,147)					50,781,147
Total Options Purchased — 0.0% (Cost: $1,142,441)					117,188
Total Investments Before TBA Sale Commitments — 122.5% (Cost: $3,698,356,323)					3,736,535,147
		Par (000)
TBA Sale Commitments — (15.1)%(l)
Mortgage-Backed Securities — (15.1)%
Federal Home Loan Mortgage Corp.:
3.50%, 04/15/34 - 04/15/49	USD		14,811		(15,074,072	)
4.00%, 04/15/49			29,813		(30,688,175	)
4.50%, 04/15/49			4,019		(4,194,238	)
5.00%, 04/15/49			1,722		(1,823,436	)
Federal National Mortgage Association:
2.00%, 04/25/34			4,488		(4,370,586	)
2.50%, 04/25/34			645		(640,655	)
3.00%, 04/25/34			1,789		(1,805,452	)
3.50%, 04/25/34 - 04/25/49			77,219		(78,344,741	)
4.00%, 04/25/34 - 04/25/49			111,830		(115,037,683	)
4.50%, 04/25/34 - 04/25/49			158,469		(165,040,791	)
5.00%, 04/25/49 - 05/25/49			7,418		(7,839,774	)
5.50%, 04/25/49			5,112		(5,457,881	)
6.00%, 04/25/49			6,269		(6,755,460	)
Government National Mortgage Association:
3.50%, 04/15/49			1,128		(1,152,389	)
4.00%, 04/15/49			12,041		(12,432,097	)
4.50%, 04/15/49			6,678		(6,948,381	)

		Par (000)		Value
Mortgage-Backed Securities (continued)
5.00%, 04/15/49	USD		2,600	$	(2,716,229	)
Total TBA Sale Commitments — (15.1)% (Proceeds: $458,856,745)					(460,322,040	)
Total Investments Net of TBA Sale Commitments — 107.4% (Cost: $3,239,499,578)					3,276,213,107
Liabilities in Excess of Other Assets — (7.4)%					(226,963,588	)
Net Assets — 100.0%				$	3,049,249,519

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

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

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

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

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

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

^(g)  Zero-coupon bond.

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

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

^(j)  Non-income producing security.

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

^(l)  Represents or includes a TBA transaction.

^(m)  Amount is less than $500.

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

^(o)  During the six months ended March 31, 2019, investments in issuers considered to be an affiliate 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 09/30/18		Net Activity		Shares Held at 03/31/19		Value at 03/31/19		Income		Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		14,150,807		36,630,340		50,781,147	$	50,781,147	$	115,447	$	—	$	—

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

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

32 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

Reverse Repurchase Agreements

Counterparty

Interest Rate

Trade Date

Maturity Date

Face Value

Face Value Including Accrued Interest

Type of Non-Cash Underlying Collateral

Remaining Contractual Maturity of the Agreements

Credit Suisse Securities USA LLC

2.50

%

12/03/18

Open

(a)

$

923,775

$

929,074

Foreign Government Obligations

Open/Demand(a)

BNP Paribas SA

2.80

12/17/18

Open

(a)

144,075

145,157

Corporate Bonds

Open/Demand(a)

Barclays Capital, Inc.

3.70

03/29/19

04/01/19

49,590,450

49,605,740

U.S. Treasury Obligations

Overnight

Deutsche Bank Securities, Inc.

3.75

03/29/19

04/01/19

43,542,895

43,556,502

U.S. Treasury Obligations

Overnight

Merrill Lynch, Pierce, Fenner & Smith Inc.

3.60

03/29/19

04/01/19

36,356,151

36,367,058

U.S. Treasury Obligations

Overnight

Merrill Lynch, Pierce, Fenner & Smith Inc.

3.60

03/29/19

04/01/19

50,847,975

50,863,230

U.S. Treasury Obligations

Overnight

Merrill Lynch, Pierce, Fenner & Smith Inc.

3.60

03/29/19

04/01/19

10,350,000

10,353,105

U.S. Treasury Obligations

Overnight

$

191,755,321

$

191,819,866

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

Derivative Financial Instruments Outstanding as of Period End    

Futures Contracts    

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
U.S. Treasury Long Bond		162		06/19/19	$	24,244	$	677,133
U.S. Treasury Ultra Bond		486		06/19/19		81,648		2,737,512
U.S. Treasury 2 Year Note		1,166		06/28/19		248,467		981,343
U.S. Treasury 5 Year Note		974		06/28/19		112,817		331,758
90-day Eurodollar		1,203		12/16/19		293,442		612,965
								5,340,711
Short Contracts
U.S. Treasury 10 Year Note		822		06/19/19		102,108		(964,413	)
U.S. Treasury 10 Year Ultra Note		50		06/19/19		6,639		(183,552	)
90-day Eurodollar		1,203		12/14/20		294,299		(945,750	)
								(2,093,715	)
							$	3,246,996

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	5,084,000	BRL	19,584,525	BNP Paribas SA		04/02/19	$	82,014
USD	1,196,758	BRL	4,527,684	Goldman Sachs International		04/02/19		40,365
USD	780,000	BRL	3,002,493	JPMorgan Chase Bank NA		04/02/19		13,148
USD	297,000	COP	926,788,500	Natwest Markets plc		04/05/19		6,343
MXN	14,594,452	USD	748,000	Citibank NA		04/10/19		2,930
USD	374,000	CLP	246,103,220	BNP Paribas SA		04/10/19		12,346
USD	375,000	CLP	250,725,000	JPMorgan Chase Bank NA		04/10/19		6,554
IDR	6,658,048,235	USD	465,002	BNP Paribas SA		04/15/19		1,160
IDR	4,107,505,930	USD	286,997	Deutsche Bank AG		04/15/19		590
CAD	707,628	USD	528,000	Deutsche Bank AG		04/17/19		1,728
COP	956,226,868	USD	299,476	Standard Chartered Bank		04/17/19		193
MXN	5,906,824	USD	301,000	Citibank NA		04/17/19		2,582
MXN	5,824,460	USD	299,000	HSBC Bank plc		04/17/19		349
MXN	2,792,794	USD	143,100	State Street Bank and Trust Co.		04/17/19		436
TRY	517,950	USD	90,000	Citibank NA		04/17/19		896
TRY	1,004,500	USD	175,000	JPMorgan Chase Bank NA		04/17/19		1,282
USD	113,000	ARS	4,892,900	BNP Paribas SA		04/17/19		2,353
USD	376,792	AUD	528,000	Goldman Sachs International		04/17/19		1,771

SCHEDULES OF INVESTMENTS 33

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	528,000	CAD	702,140	Morgan Stanley & Co. International plc		04/17/19	$	2,380
USD	603,949	CLP	408,601,561	BNP Paribas SA		04/17/19		3,495
USD	299,476	COP	948,620,178	Natwest Markets plc		04/17/19		2,191
USD	452,923	MXN	8,666,229	Goldman Sachs International		04/17/19		7,521
USD	302,000	TRY	1,709,924	Citibank NA		04/17/19		1,922
ZAR	8,177,436	USD	564,000	Barclays Bank plc		04/17/19		1,721
ZAR	8,177,887	USD	564,000	Goldman Sachs International		04/17/19		1,753
USD	135,000	ARS	5,618,700	BNP Paribas SA		04/22/19		8,778
USD	3,033,000	BRL	11,731,796	BNP Paribas SA		05/03/19		42,620
USD	210,700	BRL	803,273	Citibank NA		05/03/19		5,950
USD	1,241,861	IDR	17,689,045,000	Bank of America NA		05/29/19		12,136
USD	910,698	IDR	12,925,532,750	Citibank NA		05/29/19		12,128
USD	510,233	IDR	7,265,715,000	Goldman Sachs International		05/29/19		5,128
USD	438,362	IDR	6,272,522,309	HSBC Bank plc		05/29/19		2,303
USD	342,354	IDR	4,894,975,000	Morgan Stanley & Co. International plc		05/29/19		2,060
USD	342,234	IDR	4,894,978,293	UBS AG		05/29/19		1,940
MXN	18,999,108	USD	965,079	Barclays Bank plc		05/30/19		4,368
USD	2,313,411	COP	7,240,975,000	Credit Suisse International		05/30/19		49,498
USD	2,353,733	MXN	45,858,488	Barclays Bank plc		05/30/19		13,761
USD	2,399,460	ZAR	33,400,000	Deutsche Bank AG		05/30/19		101,108
AUD	450,000	USD	317,425	HSBC Bank plc		06/19/19		2,565
AUD	216,000	USD	153,003	Morgan Stanley & Co. International plc		06/19/19		593
CAD	6,150,000	NOK	39,371,070	BNP Paribas SA		06/19/19		32,448
CAD	592,512	NZD	640,000	Citibank NA		06/19/19		7,752
EUR	6,078,000	MXN	132,805,516	BNP Paribas SA		06/19/19		107,840
JPY	251,190,550	CAD	3,039,000	Morgan Stanley & Co. International plc		06/19/19		1,896
JPY	6,107,094	NZD	80,169	Citibank NA		06/19/19		767
JPY	59,761,891	SEK	4,920,000	JPMorgan Chase Bank NA		06/19/19		10,222
JPY	39,235,129	SEK	3,230,000	Morgan Stanley & Co. International plc		06/19/19		6,722
JPY	136,100,262	USD	1,230,000	Citibank NA		06/19/19		5,616
JPY	136,100,201	USD	1,230,000	Morgan Stanley & Co. International plc		06/19/19		5,616
NZD	3,647,000	USD	2,480,124	Citibank NA		06/19/19		7,268
USD	2,051,230	EUR	1,813,000	BNP Paribas SA		06/19/19		3,851
USD	2,460,000	JPY	268,880,829	Standard Chartered Bank		06/19/19		18,906
USD	3,039,000	MXN	59,351,670	Goldman Sachs International		06/19/19		19,741
USD	10,804,010	EUR	8,330,000	Deutsche Bank AG		12/13/19		1,256,546
USD	10,873,982	EUR	8,330,000	Deutsche Bank AG		02/25/20		1,271,061
JPY	1,109,230,000	USD	10,278,262	JPMorgan Chase Bank NA		03/16/20		10,908
USD	11,072,370	JPY	1,109,230,000	HSBC Bank plc		03/16/20		783,200
								4,013,319
BRL	13,843,477	USD	3,586,000	BNP Paribas SA		04/02/19		(50,307	)
BRL	1,137,148	USD	301,000	Goldman Sachs International		04/02/19		(10,567	)
BRL	2,220,650	USD	575,000	HSBC Bank plc		04/02/19		(7,835	)
BRL	9,713,924	USD	2,598,758	UBS AG		04/02/19		(117,773	)
COP	922,482,000	USD	297,000	Citibank NA		04/05/19		(7,694	)
CLP	801,203,997	USD	1,200,000	Natwest Markets plc		04/10/19		(22,614	)
USD	748,000	MXN	14,586,524	HSBC Bank plc		04/10/19		(2,522	)
MXN	21,736,435	USD	1,123,034	HSBC Bank plc		04/15/19		(5,527	)
CLP	205,148,600	USD	302,000	BNP Paribas SA		04/17/19		(527	)
CLP	199,638,250	USD	301,000	Citibank NA		04/17/19		(7,625	)
COP	1,199,914,000	USD	379,000	Natwest Markets plc		04/17/19		(2,963	)
MXN	17,523,831	USD	903,000	Citibank NA		04/17/19		(2,361	)
MXN	7,293,781	USD	377,000	HSBC Bank plc		04/17/19		(2,135	)
TRY	1,719,890	USD	302,000	BNP Paribas SA		04/17/19		(173	)
USD	746,791	IDR	10,756,416,898	Bank of America NA		04/17/19		(6,126	)
USD	376,243	IDR	5,436,713,229	Citibank NA		04/17/19		(4,310	)
USD	299,476	MXN	5,905,697	Citibank NA		04/17/19		(4,048	)
USD	605,000	TRY	3,469,554	BNP Paribas SA		04/17/19		(3,878	)
USD	982,000	ZAR	14,325,847	BNP Paribas SA		04/17/19		(9,073	)
ZAR	24,601,923	USD	1,707,679	BNP Paribas SA		04/17/19		(5,699	)
ZAR	6,507,753	USD	453,000	Citibank NA		04/17/19		(2,789	)

34 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
ZAR	3,455,741	USD	239,320	Morgan Stanley & Co. International plc		04/17/19	$	(250	)
ARS	5,710,500	USD	135,000	BNP Paribas SA		04/22/19		(6,716	)
ARS	6,105,000	USD	148,000	Natwest Markets plc		04/25/19		(11,399	)
BRL	5,200,756	USD	1,342,000	BNP Paribas SA		05/03/19		(16,352	)
BRL	2,322,071	USD	603,000	Goldman Sachs International		05/03/19		(11,115	)
USD	299,476	BRL	1,195,508	Goldman Sachs International		05/03/19		(5,253	)
USD	175,000	TRY	1,048,250	BNP Paribas SA		05/28/19		(2,794	)
IDR	4,847,076,375	USD	341,031	Bank of America NA		05/29/19		(4,067	)
IDR	8,078,456,375	USD	567,029	JPMorgan Chase Bank NA		05/29/19		(5,423	)
ARS	15,601,300	USD	375,000	BNP Paribas SA		05/30/19		(41,757	)
ARS	9,213,600	USD	220,000	Deutsche Bank AG		05/30/19		(23,198	)
COP	2,463,545,000	USD	781,829	Credit Suisse International		05/30/19		(11,595	)
COP	3,238,695,000	USD	1,028,657	JPMorgan Chase Bank NA		05/30/19		(16,069	)
COP	1,538,735,000	USD	488,642	UBS AG		05/30/19		(7,552	)
MXN	8,246,919	USD	422,402	Barclays Bank plc		05/30/19		(1,595	)
ZAR	15,991,460	USD	1,113,728	Bank of America NA		05/30/19		(13,309	)
USD	90,000	TRY	543,150	Citibank NA		06/17/19		(845	)
USD	175,000	TRY	1,053,500	JPMorgan Chase Bank NA		06/17/19		(1,205	)
ARS	3,429,900	USD	74,000	BNP Paribas SA		06/18/19		(2,619	)
ARS	13,315,800	USD	301,000	BNP Paribas SA		06/19/19		(24,264	)
AUD	2,625,000	USD	1,867,333	HSBC Bank plc		06/19/19		(719	)
BRL	34,108,994	USD	8,874,000	JPMorgan Chase Bank NA		06/19/19		(212,686	)
EUR	1,813,000	USD	2,076,248	Morgan Stanley & Co. International plc		06/19/19		(28,868	)
IDR	10,778,110,000	USD	749,000	Bank of America NA		06/19/19		(1,657	)
IDR	10,725,680,000	USD	749,000	JPMorgan Chase Bank NA		06/19/19		(5,292	)
MXN	133,136,455	EUR	6,078,000	JPMorgan Chase Bank NA		06/19/19		(91,005	)
MXN	58,944,444	USD	3,039,000	Citibank NA		06/19/19		(40,457	)
NOK	39,501,751	CAD	6,150,000	Toronto Dominion Bank		06/19/19		(17,250	)
NZD	640,000	CAD	591,724	Goldman Sachs International		06/19/19		(7,161	)
NZD	80,169	JPY	6,032,561	Bank of America NA		06/19/19		(90	)
SEK	8,150,000	JPY	98,208,315	Citibank NA		06/19/19		(9,783	)
USD	2,182,426	AUD	3,075,000	Deutsche Bank AG		06/19/19		(4,179	)
USD	152,552	AUD	216,000	Goldman Sachs International		06/19/19		(1,044	)
USD	2,486,302	NZD	3,647,000	Goldman Sachs International		06/19/19		(1,090	)
EUR	8,330,000	USD	10,191,922	JPMorgan Chase Bank NA		12/13/19		(644,458	)
EUR	8,330,000	USD	10,265,434	JPMorgan Chase Bank NA		02/25/20		(662,513	)
								(2,212,175	)
	Net Unrealized Appreciation						$	1,801,144

Exchange-Traded Options Purchased

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Put
U.S. Treasury 10 Year Note		872		04/26/19	USD	122.00	USD	87,200	$	27,250
U.S. Treasury 10 Year Note		1,790		04/26/19	USD	122.50	USD	179,000		83,906
									$	111,156

OTC Currency Options Purchased

Description	Counterparty		Expiration Date	Exercise Price		Notional Amount (000)		Value
Put
USD Currency		BNP Paribas SA	04/26/19		ZAR  14.40		USD  454	$	6,031

SCHEDULES OF INVESTMENTS 35

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Description

Rate

Frequency

Rate

Frequency

Put

10-Year Interest Rate Swap

3.77

%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

04/24/19

3.77

%

USD

9,065

$

1

Centrally Cleared Inflation Swaps

Paid by the Fund		Received by the Fund		Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Reference	Frequency	Rate	Frequency
3.41%	At Termination	UK Retail Price Index All Items Monthly	At Termination		03/15/24	GBP	33,414	$	173,567		$	—	$	173,567
Eurostat HICP Ex. Tobacco All Items Monthly	At Termination	1.11%	At Termination		03/15/24	EUR	48,562		342,949			—		342,949
UK Retail Price Index All Items Monthly	At Termination	3.44%	At Termination		03/15/24	GBP	10,108		(28,985	)		—		(28,985	)
1.30%	At Termination	Eurostat HICP Ex. Tobacco All Items Monthly	At Termination		03/15/29	EUR	48,562		(760,112	)		—		(760,112	)
UK Retail Price Index All Items Monthly	At Termination	3.49%	At Termination		03/15/29	GBP	33,414		(148,475	)		—		(148,475	)
								$	(421,056	)	$	—	$	(421,056	)

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund		Effective Date			Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
0.99%	Semi-Annual	6 month LIBOR	Semi-Annual		N/A			03/20/20	GBP	114,165	$	(60,031	)	$	—	$	(60,031	)
28 day MXIBTIIE	Monthly	8.21%	Monthly		N/A			10/07/20	MXN	76,196		3,311			—		3,311
2.33%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/29/21	USD	8,060		9,644			—		9,644
2.35%	Semi-Annual	3 month LIBOR	Quarterly		04/01/19	(a)		04/01/21	USD	4,020		2,735			—		2,735
3 month LIBOR	Quarterly	2.39%	Semi-Annual		04/02/19	(a)		04/02/21	USD	11,120		—			—		—
3 month BA	Semi-Annual	1.81%	Semi-Annual		03/22/21	(a)		03/22/22	CAD	211,255		(53,050	)		—		(53,050	)
6 month LIBOR	Semi-Annual	1.25%	Semi-Annual		03/22/21	(a)		03/22/22	GBP	118,930		300,062			—		300,062
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22	MXN	14,801		17,769			—		17,769
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22	MXN	19,509		23,581			—		23,581
28 day MXIBTIIE	Monthly	8.39%	Monthly		N/A			01/18/24	MXN	36,980		45,009			—		45,009
28 day MXIBTIIE	Monthly	8.13%	Monthly		N/A			02/02/24	MXN	19,406		12,704			—		12,704
28 day MXIBTIIE	Monthly	8.14%	Monthly		N/A			02/05/24	MXN	13,946		9,461			—		9,461
28 day MXIBTIIE	Monthly	6.32%	Monthly		N/A			07/17/25	MXN	14,506		(59,701	)		—		(59,701	)
3 month LIBOR	Quarterly	2.13%	Semi-Annual		N/A			08/25/25	USD	485		(5,880	)		—		(5,880	)
2.27%	Semi-Annual	3 month LIBOR	Quarterly		N/A			09/11/25	USD	367		1,303			—		1,303
2.91%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/23/26	USD	844		(32,763	)		—		(32,763	)
2.93%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/24/28	USD	1,870		(81,810	)		—		(81,810	)
3.16%	Semi-Annual	3 month LIBOR	Quarterly		N/A			10/03/28	USD	1,035		(69,992	)		—		(69,992	)
2.85%	Semi-Annual	3 month LIBOR	Quarterly		N/A			12/24/28	USD	578		(25,795	)		—		(25,795	)
2.72%	Semi-Annual	3 month LIBOR	Quarterly		N/A			01/08/29	USD	3,318		(82,957	)		—		(82,957	)
3 month LIBOR	Quarterly	2.69%	Semi-Annual		N/A			01/08/29	USD	5,910		133,909			—		133,909
2.81%	Semi-Annual	3 month LIBOR	Quarterly		N/A			01/29/29	USD	483		(16,150	)		—		(16,150	)
2.76%	Semi-Annual	3 month LIBOR	Quarterly		N/A			01/31/29	USD	531		(15,649	)		—		(15,649	)
3 month LIBOR	Quarterly	2.69%	Semi-Annual		N/A			02/26/29	USD	2,492		57,033			—		57,033
3 month LIBOR	Quarterly	2.64%	Semi-Annual		N/A			03/19/29	USD	2,750		50,495			—		50,495
2.56%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/22/29	USD	1,453		(16,105	)		—		(16,105	)
3 month LIBOR	Quarterly	2.45%	Semi-Annual		N/A			03/26/29	USD	1,360		1,374			—		1,374
2.42%	Semi-Annual	3 month LIBOR	Quarterly		04/02/19	(a)		04/02/29	USD	1,300		—			—		—
3 month LIBOR	Quarterly	3.35%	Semi-Annual		04/26/19	(a)		04/26/29	USD	1,469		120,072			—		120,072
3.23%	Semi-Annual	3 month LIBOR	Quarterly		04/26/19	(a)		04/26/29	USD	511		(36,458	)		—		(36,458	)
3.26%	Semi-Annual	3 month LIBOR	Quarterly		04/26/19	(a)		04/26/29	USD	2,080		(154,361	)		—		(154,361	)
2.93%	Semi-Annual	3 month LIBOR	Quarterly		06/12/19	(a)		06/12/29	USD	2,436		(107,715	)		—		(107,715	)
											$	(29,955	)	$	—	$	(29,955	)

^(a)  Forward Swap.

36 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%		Quarterly	JPMorgan Chase Bank NA		06/20/20	USD	1,491	$	(10,539	)	$	4,114		$	(14,653	)
United Mexican States		1.00			Quarterly	Bank of America NA		09/20/20	USD	1,491		(11,390	)		6,566			(17,956	)
Republic of Colombia		1.00			Quarterly	Citibank NA		06/20/24	USD	2,747		10,263			27,051			(16,788	)
Republic of South Africa		1.00			Quarterly	Goldman Sachs International		06/20/24	USD	3,544		163,887			157,275			6,612
Republic of the Philippines		1.00			Quarterly	Citibank NA		06/20/24	USD	2,197		(43,377	)		(34,831	)		(8,546	)
United Mexican States		1.00			Quarterly	Citibank NA		06/20/24	USD	494		4,688			8,677			(3,989	)
United Mexican States		1.00			Quarterly	Citibank NA		06/20/24	USD	1,435		13,623			25,218			(11,595	)
United Mexican States		1.00			Quarterly	HSBC Bank plc		06/20/24	USD	793		7,531			14,397			(6,866	)
United Mexican States		1.00			Quarterly	HSBC Bank plc		06/20/24	USD	2,305		21,887			41,843			(19,956	)
CMBX.NA.9.AAA		0.50			Monthly	Credit Suisse International		09/17/58	USD	1,280		(11,190	)		15,042			(26,232	)
CMBX.NA.9.AAA		0.50			Monthly	Deutsche Bank AG		09/17/58	USD	1,030		(9,004	)		12,264			(21,268	)
CMBX.NA.9.AAA		0.50			Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	720		(6,294	)		8,458			(14,752	)
CMBX.NA.9.AAA		0.50			Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	1,570		(13,725	)		19,887			(33,612	)
CMBX.NA.9.AAA		0.50			Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	860		(7,519	)		10,105			(17,624	)
CMBX.NA.9.BBB-		3.00			Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	288		17,246			16,402			844
CMBX.NA.6.AAA		0.50			Monthly	Deutsche Bank AG		05/11/63	USD	1,857		(13,838	)		(1,397	)		(12,441	)
CMBX.NA.6.AAA		0.50			Monthly	Deutsche Bank AG		05/11/63	USD	1,325		(9,874	)		(194	)		(9,680	)
CMBX.NA.6.AAA		0.50			Monthly	Deutsche Bank AG		05/11/63	USD	2,128		(15,856	)		(2	)		(15,854	)
CMBX.NA.6.BBB-		3.00			Monthly	JPMorgan Securities LLC		05/11/63	USD	270		34,193			25,498			8,695
CMBX.NA.6.BBB-		3.00			Monthly	JPMorgan Securities LLC		05/11/63	USD	10		1,266			608			658
											$	121,978		$	356,981		$	(235,003	)

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty		Termination Date		Credit Rating (a)	Notional Amount (000) (b)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%		Quarterly		Bank of America NA		06/20/20	BBB+		USD	1,491	$	10,539		$	(4,624	)	$	15,163
United Mexican States		1.00			Quarterly		JPMorgan Chase Bank NA		09/20/20	BBB+		USD	1,491		11,390			(5,855	)		17,245
CMBX.NA.3.AM		0.50			Monthly		Credit Suisse International		12/13/49	NR		USD	7		(28	)		(685	)		657
CMBX.NA.3.AM		0.50			Monthly		Goldman Sachs International		12/13/49	NR		USD	17		(67	)		(1,733	)		1,666
CMBX.NA.3.AM		0.50			Monthly		JPMorgan Chase Bank NA		12/13/49	NR		USD	87		(335	)		(8,209	)		7,874
CMBX.NA.4.AM		0.50			Monthly		Deutsche Bank AG		02/17/51	NR		USD	2		(9	)		(217	)		208
CMBX.NA.8.A		2.00			Monthly		Goldman Sachs International		10/17/57	NR		USD	497		627			(26,683	)		27,310
CMBX.NA.9.BBB-		3.00			Monthly		Deutsche Bank AG		09/17/58	NR		USD	723		(43,291	)		(85,863	)		42,572
CMBX.NA.9.BBB-		3.00			Monthly		Deutsche Bank AG		09/17/58	NR		USD	352		(21,078	)		(37,068	)		15,990
CMBX.NA.9.BBB-		3.00			Monthly		JPMorgan Securities LLC		09/17/58	NR		USD	223		(13,354	)		(19,355	)		6,001
CMBX.NA.9.BBB-		3.00			Monthly		Morgan Stanley & Co. International plc		09/17/58	NR		USD	207		(12,395	)		(24,950	)		12,555
CMBX.NA.9.BBB-		3.00			Monthly		Morgan Stanley & Co. International plc		09/17/58	NR		USD	220		(13,175	)		(13,329	)		154
CMBX.NA.10.A		2.00			Monthly		Deutsche Bank AG		11/17/59	A-		USD	4,050		(11,588	)		(172,282	)		160,694
CMBX.NA.10.A		2.00			Monthly		Deutsche Bank AG		11/17/59	A-		USD	2,020		(5,779	)		(87,401	)		81,622
CMBX.NA.10.BBB-		3.00			Monthly		JPMorgan Securities LLC		11/17/59	NR		USD	35		(1,855	)		(2,968	)		1,113
CMBX.NA.6.BBB-		3.00			Monthly		Credit Suisse International		05/11/63	NR		USD	280		(35,461	)		(21,874	)		(13,587	)
														$	(135,859	)	$	(513,096	)	$	377,237

^(a)  Using S&P 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.

SCHEDULES OF INVESTMENTS 37

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

OTC Interest Rate Swaps

Paid by the Fund		Received by the Fund		Counterparty	Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
3.27%	Semi-Annual	3 month LIBOR	Quarterly	Deutsche Bank AG		05/16/21	USD	8,580	$	(237,135	)	$	—	$	(237,135	)
1 day BZDIOVER	At Termination	8.27%	At Termination	JPMorgan Chase Bank NA		01/02/23	BRL	6,925		10,750			—		10,750
1 day BZDIOVER	At Termination	8.35%	At Termination	Goldman Sachs International		01/02/23	BRL	6,599		14,849			—		14,849
1 day BZDIOVER	At Termination	8.53%	At Termination	Citibank NA		01/02/23	BRL	12,190		66,458			—		66,458
1 day BZDIOVER	At Termination	8.49%	At Termination	Citibank NA		01/02/25	BRL	21,651		(202	)		—		(202	)
1 day BZDIOVER	At Termination	8.56%	At Termination	BNP Paribas SA		01/02/25	BRL	10,696		5,981			—		5,981
5.73%	Monthly	28 day MXIBTIIE	Monthly	Bank of America NA		01/03/25	MXN	7,400		38,740			—		38,740
28 day MXIBTIIE	Monthly	6.43%	Monthly	Bank of America NA		06/06/25	MXN	6,011		(22,396	)		—		(22,396	)
28 day MXIBTIIE	Monthly	6.33%	Monthly	Citibank NA		06/09/25	MXN	3,006		(11,925	)		—		(11,925	)
28 day MXIBTIIE	Monthly	6.33%	Monthly	Citibank NA		07/17/25	MXN	7,228		(29,652	)		—		(29,652	)
6.31%	Monthly	28 day MXIBTIIE	Monthly	Bank of America NA		08/11/25	MXN	7,575		31,783			—		31,783
6.31%	Monthly	28 day MXIBTIIE	Monthly	Bank of America NA		08/11/25	MXN	7,575		31,783			—		31,783
6.31%	Monthly	28 day MXIBTIIE	Monthly	Deutsche Bank AG		08/11/25	MXN	28,117		118,192			—		118,192
28 day MXIBTIIE	Monthly	6.27%	Monthly	Bank of America NA		12/05/25	MXN	901		(4,060	)		—		(4,060	)
									$	13,166		$	—	$	13,166

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

Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate		0.25	%
28 day MXIBTIIE	Mexico Interbank TIIE28-Day		8.52
3 month BA	3 month Canadian Bankers Acceptances		2.02
3 month LIBOR	London Interbank Offered Rate		2.60

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

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps(a)	$	—	$	—		$	1,304,978	$	(1,755,989	)
OTC Swaps		393,405		(549,520	)		726,169		(570,769	)

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation(a)	$	—	$	—	$	—	$	—	$	5,340,711	$	—	$	5,340,711
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		4,013,319		—		—		4,013,319
Options purchased
Investments at value — unaffiliated(b)		—		—		—		6,031		111,157		—		117,188
Swaps — centrally cleared
Net unrealized appreciation(a)		—		—		—		—		788,462		516,516		1,304,978
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		801,038		—		—		318,536		—		1,119,574
	$	—	$	801,038	$	—	$	4,019,350	$	6,558,866	$	516,516	$	11,895,770

38 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	—	$	—	$	—	$	—	$	2,093,715	$	—	$	2,093,715
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		2,212,175		—		—		2,212,175
Swaps — centrally cleared
Net unrealized depreciation(a)		—		—		—		—		818,417		937,572		1,755,989
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		814,919		—		—		305,370		—		1,120,289
	$	—	$	814,919	$	—	$	2,212,175	$	3,217,502	$	937,572	$	7,182,168

^(a)  Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

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

For the six month ended March 31, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—		$	(4,279,975	)	$	—		$	(4,279,975	)
Forward foreign currency exchange contracts		—		—			—		(1,449,165	)		—			—			(1,449,165	)
Options purchased(a)		—		—			—		(80,952	)		(637,297	)		—			(718,249	)
Options written		—		—			—		—			951,690			—			951,690
Swaps		—		288,347			—		9,997			1,322,284			196,291			1,816,919
	$	—	$	288,347		$	—	$	(1,520,120	)	$	(2,643,298	)	$	196,291		$	(3,678,780	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—		$	—	$	—		$	9,258,741		$	—		$	9,258,741
Forward foreign currency exchange contracts		—		—			—		(1,535,553	)		—			—			(1,535,553	)
Options purchased(b)		—		—			—		110,090			(260,263	)		—			(150,173	)
Options written		—		—			—		—			(57,715	)		—			(57,715	)
Swaps		—		(276,215	)		—		—			(51,959	)		(438,439	)		(766,613	)
	$	—	$	(276,215	)	$	—	$	(1,425,463	)	$	8,888,804		$	(438,439	)	$	6,748,687

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

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

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	628,432,348
Average notional value of contracts — short		437,047,021
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		139,516,979
Average amounts sold — in USD		69,736,943
Options:
Average value of option contracts purchased		58,599
Average value of option contracts written		—	(a)
Average notional value of swaption contracts purchased		64,859,000
Average notional value of swaption contracts written		115,620,000
Credit default swaps:
Average notional value — buy protection		28,512,209
Average notional value — sell protection		17,531,138

SCHEDULES OF INVESTMENTS 39

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

Average Quarterly Balances of Outstanding Derivative Financial Instruments (continued)

Interest rate swaps:
Average notional value — pays fixed rate	$	493,685,592
Average notional value — receives fixed rate		469,876,725
Currency swaps:
Average notional value — pays		109,559
Average notional value — receives		108,304
Inflation Swaps:
Average notional value — pays fixed rate		48,995,195
Average notional value — receives fixed rate		61,537,228

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

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	610,866		$	866,433
Forward foreign currency exchange contracts		4,013,319			2,212,175
Options(a)		117,188			—
Swaps — Centrally cleared		—			731,735
Swaps — OTC(b)		1,119,574			1,120,289
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	5,860,947		$	4,930,632
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(722,022	)		(1,598,168	)
Total derivative assets and liabilities subject to an MNA	$	5,138,925		$	3,332,464

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

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

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets  (b)(f)
Bank of America NA	$	136,171	$	(74,285	)	$	—	$	—	$	61,886
Barclays Bank plc		19,850		(1,595	)		—		—		18,255
BNP Paribas SA		308,917		(164,159	)		—		—		144,758
Citibank NA		175,216		(175,216	)		—		—		—
Credit Suisse International		65,197		(65,197	)		—		—		—
Deutsche Bank AG		3,062,575		(708,179	)		—		—		2,354,396
Goldman Sachs International		283,991		(64,646	)		—		—		219,345
HSBC Bank plc		844,657		(45,560	)		—		—		799,097
JPMorgan Chase Bank NA		82,097		(82,097	)		—		—		—
JPMorgan Securities LLC		42,573		(22,323	)		—		—		20,250
Morgan Stanley & Co. International plc		87,672		(87,672	)		—		—		—
Natwest Markets plc		8,534		(8,534	)		—		—		—
Standard Chartered Bank		19,099		—			—		—		19,099
State Street Bank and Trust Co.		436		—			—		—		436
UBS AG		1,940		(1,940	)		—		—		—
	$	5,138,925	$	(1,501,403	)	$	—	$	—	$	3,637,522

40 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged (c)			Net Amount of Derivative Liabilities  (d)(f)
Bank of America NA	$	74,285	$	(74,285	)	$	—	$	—		$	—
Barclays Bank plc		1,595		(1,595	)		—		—			—
BNP Paribas SA		164,159		(164,159	)		—		—			—
Citibank NA		197,440		(175,216	)		—		—			22,224
Credit Suisse International		73,973		(65,197	)		—		(8,776	)		—
Deutsche Bank AG		708,179		(708,179	)		—		—			—
Goldman Sachs International		64,646		(64,646	)		—		—			—
HSBC Bank plc		45,560		(45,560	)		—		—			—
JPMorgan Chase Bank NA		1,667,368		(82,097	)		—		—			1,585,271
JPMorgan Securities LLC		22,323		(22,323	)		—		—			—
Morgan Stanley & Co. International plc		133,385		(87,672	)		—		(45,713	)		—
Natwest Markets plc		36,976		(8,534	)		—		—			28,442
Toronto Dominion Bank		17,250		—			—		—			17,250
UBS AG		125,325		(1,940	)		—		—			123,385
	$	3,332,464	$	(1,501,403	)	$	—	$	(54,489	)	$	1,776,572

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

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

^(c)  Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

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

^(e)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—	$	178,875,002		$	6,037,633	$	184,912,635
Corporate Bonds(a)		—		1,304,684,616			—		1,304,684,616
Foreign Agency Obligations		—		11,068,287			—		11,068,287
Foreign Government Obligations		—		79,058,377			—		79,058,377
Municipal Bonds		—		109,565,020			—		109,565,020
Non-Agency Mortgage-Backed Securities		—		117,443,218			371,626		117,814,844
Other Interests		—		—			—		—
Capital Trusts		—		8,318,080			—		8,318,080
U.S. Government Sponsored Agency Securities		—		1,235,262,543			—		1,235,262,543
U.S. Treasury Obligations		—		634,952,410			—		634,952,410
Short-Term Securities		50,781,147		—			—		50,781,147
Options Purchased:
Foreign currency exchange contracts		—		6,031			—		6,031
Interest rate contracts		111,156		1			—		111,157
Liabilities:
TBA Sale Commitments		—		(460,322,040	)		—		(460,322,040	)
	$	50,892,303	$	3,218,911,545		$	6,409,259	$	3,276,213,107

SCHEDULES OF INVESTMENTS 41

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Core Bond Portfolio

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—		$	407,633		$	—	$	407,633
Foreign currency exchange contracts		—			4,013,319			—		4,013,319
Interest rate contracts		5,340,711			1,106,998			—		6,447,709
Other contracts		—			516,516			—		516,516
Liabilities:
Credit contracts		—			(265,399	)		—		(265,399	)
Foreign currency exchange contracts		—			(2,212,175	)		—		(2,212,175	)
Interest rate contracts		(2,093,715	)		(1,123,787	)		—		(3,217,502	)
Other contracts		—			(937,572	)		—		(937,572	)
	$	3,246,996		$	1,505,533		$	—	$	4,752,529

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

^(b)  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

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount or face value, including accrued interest, for financial statement purposes. As of period end, reverse repurchase agreements of $191,819,866 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended March 31, 2019, there were no transfers between Level 1 and Level 2.

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

	Asset-Backed Securities			Corporate Bonds			Non-Agency Mortgage- Backed Securities			U.S. Government Sponsored Agency Securities			Total
Investments:
Assets:
Opening Balance, as of September 30, 2018	$	2,458,305		$	27,000,000		$	1,822,934		$	341,030		$	31,622,269
Transfers into Level 3		—			—			—			—			—
Transfers out of Level 3		(2,458,305	)		—			(836,650	)		(341,030	)		(3,635,985	)
Accrued discounts/premiums		(10	)		—			(5	)		—			(15	)
Net realized gain (loss)		—			—			(1,066	)		—			(1,066	)
Net change in unrealized appreciation (depreciation)(a)(b)		10			—			(1,481	)		—			(1,471	)
Purchases		6,037,633			—			—			—			6,037,633
Sales		—			(27,000,000	)		(612,106	)		—			(27,612,106	)
Closing Balance, as of March 31, 2019	$	6,037,633		$	—		$	371,626		$	—		$	6,409,259
Net change in unrealized appreciation (depreciation) on investments still held at March 31, 2019(b)	$	10		$	—		$	(1,481	)	$	—		$	(1,471	)

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

^(b)  Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at March 31, 2019 is generally due to investments no longer held or categorized as Level 3 at period end.

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

See notes to financial statements.

42 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 2.3%
AIMCO CLO, Series2017-AA, Class C, (LIBOR USD 3 Month + 2.45%), 5.21%, 07/20/29(a)(b)	USD		750	$	745,651
Allegro CLOII-S Ltd., Series2014-1RA, Class B, (LIBOR USD 3 Month + 2.15%), 4.91%, 10/21/28(a)(b)			1,830		1,813,749
Allegro CLO VI Ltd., Series2017-2A, Class D, (LIBOR USD 3 Month + 2.75%), 5.52%, 01/17/31(a)(b)			1,940		1,856,768
Allegro CLO VIII Ltd., Series2018-2A, Class C, (LIBOR USD 3 Month + 2.15%), 4.94%, 07/15/31(a)(b)			250		243,370
ALM VI Ltd.(a)(b):
Series2012-6A, Class CR3, (LIBOR USD 3 Month + 2.70%), 5.49%, 07/15/26			4,630		4,500,322
Series2012-6A, Class DR3, (LIBOR USD 3 Month + 5.05%), 7.84%, 07/15/26			2,500		2,390,592
ALM VII Ltd., Series2012-7A, Class CR, (LIBOR USD 3 Month + 3.85%), 6.64%, 10/15/28(a)(b)			5,500		5,498,673
ALM VII R Ltd., Series2013-7RA, Class BR, (LIBOR USD 3 Month + 2.70%), 5.49%, 10/15/28(a)(b)			1,000		994,829
ALM VIIR-2 Ltd., Series 2013-7R2A, Class BR2, (LIBOR USD 3 Month + 2.20%), 4.99%, 10/15/27(a)(b)			1,500		1,481,070
ALM VIII Ltd., Series2013-8A, Class CR, (LIBOR USD 3 Month + 3.95%), 6.74%, 10/15/28(a)(b)			2,750		2,749,359
ALM XVI Ltd.(a)(b):
Series2015-16A, Class BR2, (LIBOR USD 3 Month + 1.90%), 4.69%, 07/15/27			1,000		980,576
Series2015-16A, Class CR2, (LIBOR USD 3 Month + 2.70%), 5.49%, 07/15/27			7,000		6,863,151
AMMC CLO 16 Ltd., Series2015-16A, Class DR, (LIBOR USD 3 Month + 3.55%), 6.35%, 04/14/29(a)(b)			2,500		2,499,933
AMMC CLO 19 Ltd.(a)(b):
Series2016-19A, Class C, (LIBOR USD 3 Month + 2.80%), 5.59%, 10/15/28			838		840,333
Series2016-19A, Class D, (LIBOR USD 3 Month + 3.75%), 6.54%, 10/15/28			1,000		998,210
AMMC CLO 20 Ltd., Series2017-20A, Class E, (LIBOR USD 3 Month + 5.81%), 8.58%, 04/17/29(a)(b)			1,000		943,045
AMMC CLO 22 Ltd., Series2018-22A, Class D, (LIBOR USD 3 Month + 2.70%), 5.47%, 04/25/31(a)(b)			510		483,452
Anchorage Capital CLO3-R Ltd.(a)(b):
Series2014-3RA, Class B, (LIBOR USD 3 Month + 1.50%), 4.26%, 01/28/31			250		245,219
Series2014-3RA, Class D, (LIBOR USD 3 Month + 2.60%), 5.36%, 01/28/31			1,000		953,974
Anchorage Capital CLO4-R Ltd.(a)(b):
Series2014-4RA, Class C, (LIBOR USD 3 Month + 1.85%), 4.61%, 01/28/31			1,400		1,350,159
Series2014-4RA, Class D, (LIBOR USD 3 Month + 2.60%), 5.36%, 01/28/31			5,250		5,000,999
Anchorage Capital CLO 6 Ltd.(a)(b):
Series2015-6A, Class CR, (LIBOR USD 3 Month + 2.40%), 5.19%, 07/15/30			2,300		2,287,152
Series2015-6A, Class DR, (LIBOR USD 3 Month + 3.55%), 6.34%, 07/15/30			3,250		3,216,933
Anchorage Capital CLO 7 Ltd., Series2015-7A, Class ER, (LIBOR USD 3 Month + 5.60%), 8.39%, 10/15/27(a)(b)			3,000		2,942,359

Security		Par (000)		Value
Asset-Backed Securities (continued)
Anchorage Capital CLO 8 Ltd., Series2016-8A, Class DR, (LIBOR USD 3 Month + 3.00%), 5.76%, 07/28/28(a)(b)	USD		1,500	$	1,474,757
Anchorage Capital CLO 9 Ltd.(a)(b):
Series2016-9A, Class D, (LIBOR USD 3 Month + 4.00%), 6.79%, 01/15/29			1,000		995,165
Series2016-9A, Class E, (LIBOR USD 3 Month + 7.25%), 10.04%, 01/15/29			1,000		989,324
Anchorage Capital Europe CLO 2 DAC, Series 2X, Class E, (EURIBOR 3 Month + 5.66%), 5.66%, 05/15/31(a)	EUR		1,561		1,688,412
Apidos CLO XV(a)(b):
Series2013-15A, Class CRR, (LIBOR USD 3 Month + 1.85%), 4.61%, 04/20/31	USD		1,000		962,475
Series2013-15A, Class DRR, (LIBOR USD 3 Month + 2.70%), 5.46%, 04/20/31			1,000		958,373
Series2013-15A, Class ERR, (LIBOR USD 3 Month + 5.70%), 8.46%, 04/20/31			1,000		933,949
Apidos CLO XX, Series2015-20A, Class BRR, (LIBOR USD 3 Month + 1.95%), 4.73%, 07/16/31(a)(b)			1,000		967,744
Apidos CLO XXIII, Series2015-23A, Class D2, (LIBOR USD 3 Month + 5.95%), 8.74%, 01/15/27(a)(b)			2,000		1,981,305
Apidos CLO XXIX(a)(b):
Series2018-29A, Class A2, (LIBOR USD 3 Month + 1.55%), 4.32%, 07/25/30			1,500		1,478,153
Series2018-29A, Class B, (LIBOR USD 3 Month + 1.90%), 4.67%, 07/25/30			1,500		1,439,410
Series2018-29A, Class C, (LIBOR USD 3 Month + 2.75%), 5.52%, 07/25/30			1,500		1,431,739
Aqueduct European CLO DAC, Series2017-2X, Class E, (EURIBOR 3 Month + 4.40%), 4.40%, 10/15/30(a)	EUR		884		893,625
Arbour CLO IV DAC, Series 4X, Class E, (EURIBOR 3 Month + 5.60%), 5.60%, 01/15/30(a)			917		1,017,396
Ares European CLO VIII BV, Series 8X, Class E, (EURIBOR 3 Month + 6.35%), 6.35%, 02/17/30(a)			700		788,425
Ares XLIV CLO Ltd.(a)(b):
Series2017-44A, Class C, (LIBOR USD 3 Month + 3.45%), 6.24%, 10/15/29	USD		1,000		984,902
Series2017-44A, Class D, (LIBOR USD 3 Month + 6.55%), 9.34%, 10/15/29			1,000		991,818
Ares XLIX CLO Ltd.(a)(b):
Series2018-49A, Class B, (LIBOR USD 3 Month + 1.65%), 4.41%, 07/22/30			500		496,558
Series2018-49A, Class D, (LIBOR USD 3 Month + 3.00%), 5.76%, 07/22/30			500		484,589
Series2018-49A, Class E, (LIBOR USD 3 Month + 5.70%), 8.46%, 07/22/30			500		471,767
Ares XLV CLO Ltd., Series2017-45A, Class D, (LIBOR USD 3 Month + 3.05%), 5.84%, 10/15/30(a)(b)			850		827,640
Ares XLVI CLO Ltd., Series2017-46A, (LIBOR USD 3 Month + 0.00%), 0.00%, 01/15/30(a)(b)			2,000		1,895,528
Ares XLVIII CLO(a)(b):
Series2018-48A, Class C, (LIBOR USD 3 Month + 1.80%), 4.56%, 07/20/30			1,250		1,198,050
Series2018-48A, Class D, (LIBOR USD 3 Month + 2.70%), 5.46%, 07/20/30			1,000		954,808

SCHEDULES OF INVESTMENTS 43

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Ares XXXIII CLO Ltd., Series2015-1A, Class CR, (LIBOR USD 3 Month + 4.20%), 6.80%, 12/05/25(a)(b)	USD		4,750	$	4,748,204
Ares XXXIIR CLO Ltd.(a)(b):
Series 2014-32RA, Class B, (LIBOR USD 3 Month + 1.80%), 4.48%, 05/15/30			1,500		1,444,083
Series 2014-32RA, Class C, (LIBOR USD 3 Month + 2.90%), 5.58%, 05/15/30			2,250		2,170,743
Series 2014-32RA, Class D, (LIBOR USD 3 Month + 5.85%), 8.53%, 05/15/30			1,000		936,539
Ares XXXVR CLO Ltd.(a)(b):
Series 2015-35RA, Class C, (LIBOR USD 3 Month + 1.90%), 4.69%, 07/15/30			1,000		962,642
Series 2015-35RA, Class D, (LIBOR USD 3 Month + 3.00%), 5.79%, 07/15/30			1,000		974,574
Assurant CLO I Ltd., Series2017-1A, Class E, (LIBOR USD 3 Month + 6.46%), 9.22%, 10/20/29(a)(b)			350		343,066
Assurant CLO IV Ltd., Series2019-1A, Class D, (LIBOR USD 3 Month + 3.85%), 6.41%, 04/20/30(a)(b)			1,000		999,982
Atlas Senior Loan Fund VII Ltd., Series2016-7A, Class B1R, (LIBOR USD 3 Month + 1.80%), 4.44%, 11/27/31(a)(b)			3,000		2,965,843
Atlas Senior Loan Fund X Ltd.(a)(b):
Series2018-10A, Class B, (LIBOR USD 3 Month + 1.50%), 4.29%, 01/15/31			1,800		1,755,147
Series2018-10A, Class D, (LIBOR USD 3 Month + 2.75%), 5.54%, 01/15/31			1,950		1,813,569
Atrium IX, Series 9A, Class DR, (LIBOR USD 3 Month + 3.60%), 6.23%, 05/28/30(a)(b)			500		499,911
Atrium VIII(b):
Series 8A0.00%, 10/23/24(c)			11,500		6,062,903
Series 8A, Class DR, (LIBOR USD 3 Month + 4.00%), 6.77%, 10/23/24(a)			1,450		1,449,699
Atrium XIV LLC, Series 14A, Class C, (LIBOR USD 3 Month + 1.95%), 4.73%, 08/23/30(a)(b)			3,210		3,094,201
Atrium XV(a)(b):
Series 15A, Class B, (LIBOR USD 3 Month + 1.75%), 4.53%, 01/23/31			3,750		3,730,074
Series 15A, Class C, (LIBOR USD 3 Month + 2.20%), 4.98%, 01/23/31			1,250		1,222,452
Series 15A, Class D, (LIBOR USD 3 Month + 3.00%), 5.78%, 01/23/31			750		733,523
Series 15A, Class E, (LIBOR USD 3 Month + 5.85%), 8.63%, 01/23/31			250		239,876
Avery Point IV CLO Ltd., Series2014-1A, Class CR, (LIBOR USD 3 Month + 2.35%), 5.12%, 04/25/26(a)(b)			1,000		1,000,582
Avoca, Series 2018X, Class E, (EURIBOR 3 Month + 4.60%), 4.60%, 04/15/31(a)	EUR		700		712,234
Avoca Capital CLO X Ltd., Series 10X, Class ER, (EURIBOR 3 Month + 6.05%), 6.05%, 01/15/30(a)			800		899,952
Avoca CLO XV DAC, Series 15X, Class ER, (EURIBOR 3 Month + 4.13%), 4.13%, 04/15/31(a)			620		629,713
Avoca CLO XVII Designated Activity Co., Series 17X, Class E, (EURIBOR 3 Month + 5.95%), 5.95%, 01/15/30(a)			1,279		1,438,842
Ballyrock CLO Ltd., Series2016-1A, Class C, (LIBOR USD 3 Month + 2.70%), 5.49%, 10/15/28(a)(b)	USD		2,750		2,752,630

Security		Par (000)		Value
Asset-Backed Securities (continued)
Barings Euro CLO BV, Series2018-3X, Class E, (EURIBOR 3 Month + 5.79%), 5.79%, 07/27/31(a)	EUR		1,200	$	1,312,323
Benefit Street Partners CLO VI Ltd.,Series 2015-VIA, Class CR, (LIBOR USD 3 Month + 3.45%), 6.23%, 10/18/29(a)(b)	USD		3,250		3,233,935
Benefit Street Partners CLO XII Ltd., Series2017-12A, Class C, (LIBOR USD 3 Month + 3.05%), 5.84%, 10/15/30(a)(b)			2,000		1,966,212
Bilbao CLO I DAC, Series 1X, Class D, (EURIBOR 3 Month + 4.73%), 4.73%, 07/20/31(a)	EUR		400		413,841
BlueMountain CLO Ltd.(a)(b):
Series2015-1A, Class C, (LIBOR USD 3 Month + 3.75%), 6.55%, 04/13/27	USD		1,250		1,251,498
Series2016-1A, Class BR, (LIBOR USD 3 Month + 1.35%), 4.11%, 04/20/27			1,250		1,228,828
Carlyle Global Market Strategies CLO Ltd.(a)(b):
Series2012-4A, Class C1R, (LIBOR USD 3 Month + 2.60%), 5.36%, 01/20/29			3,650		3,645,059
Series2012-4A, Class DR, (LIBOR USD 3 Month + 4.10%), 6.86%, 01/20/29			1,000		999,812
Series2013-1A, Class CR, (LIBOR USD 3 Month + 3.35%), 6.04%, 08/14/30			2,000		2,000,161
Series2013-4A, Class DRR, (LIBOR USD 3 Month + 2.65%), 5.44%, 01/15/31			1,600		1,510,047
Series2014-2RA, Class B, (LIBOR USD 3 Month + 1.83%), 4.51%, 05/15/31			1,500		1,431,823
Series2015-1A, Class DR, (LIBOR USD 3 Month + 3.00%), 5.76%, 04/20/27			3,500		3,443,087
Series2015-1A, Class E1, (LIBOR USD 3 Month + 5.30%), 8.06%, 04/20/27			3,750		3,727,460
Series2015-3A, Class A2R, (LIBOR USD 3 Month + 1.60%), 4.36%, 07/28/28			2,000		1,990,605
Series2015-4A, Class SBB1, (LIBOR USD 3 Month + 8.50%), 11.26%, 10/20/27			2,314		2,216,220
Series2016-1A, Class BR, (LIBOR USD 3 Month + 1.85%), 4.61%, 04/20/27			500		493,126
Series2016-3A, Class C, (LIBOR USD 3 Month + 4.00%), 6.76%, 10/20/29			1,000		999,789
Carlyle US CLO Ltd.(a)(b):
Series2016-4A, Class BR, (LIBOR USD 3 Month + 2.10%), 4.86%, 10/20/27			1,000		988,447
Series2017-1A, Class D, (LIBOR USD 3 Month + 6.00%), 8.76%, 04/20/31			1,000		954,152
Series2017-2A, Class B, (LIBOR USD 3 Month + 2.40%), 5.16%, 07/20/31			1,750		1,739,505
Series2017-2A, Class C, (LIBOR USD 3 Month + 3.70%), 6.46%, 07/20/31			3,000		2,994,298
Series2017-4A, Class C, (LIBOR USD 3 Month + 2.80%), 5.59%, 01/15/30			1,000		975,229
Series2017-4A, Class D, (LIBOR USD 3 Month + 6.15%), 8.94%, 01/15/30			1,000		965,866
CBAM Ltd.(a)(b):
Series2017-2A, Class C1, (LIBOR USD 3 Month + 2.40%), 5.17%, 10/17/29			1,500		1,487,251
Series2018-6A, Class B1, (LIBOR USD 3 Month + 1.50%), 4.29%, 07/15/31			2,000		1,958,325
Cedar Funding IV CLO Ltd., Series2014-4A, Class DR, (LIBOR USD 3 Month + 3.65%), 6.42%, 07/23/30(a)(b)			3,000		2,992,018
Cedar Funding IX CLO Ltd.(a)(b):
Series2018-9A, Class C, (LIBOR USD 3 Month + 1.75%), 4.51%, 04/20/31			1,250		1,183,316

44 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series2018-9A, Class D, (LIBOR USD 3 Month + 2.60%), 5.36%, 04/20/31	USD		1,400	$	1,305,458
Cedar Funding VIII CLO Ltd., Series2017-8A, Class D, (LIBOR USD 3 Month + 3.25%), 6.02%, 10/17/30(a)(b)			3,695		3,648,395
Cent CLO 17 Ltd.(a)(b):
Series C17A, Class A2R, (LIBOR USD 3 Month + 1.60%), 4.35%, 04/30/31			1,000		990,861
Series C17A, Class BR, (LIBOR USD 3 Month + 1.85%), 4.60%, 04/30/31			1,000		963,492
Series C17A, Class CR, (LIBOR USD 3 Month + 2.80%), 5.55%, 04/30/31			2,000		1,926,936
CGMSE, Series2014-2X, (EURIBOR 3 Month + 5.70%), 5.70%, 11/17/31(a)	EUR		1,255		1,368,795
Chenango Park CLO Ltd., Series2018-1A, Class B, (LIBOR USD 3 Month + 1.85%), 4.64%, 04/15/30(a)(b)	USD		1,800		1,724,406
CIFC Funding Ltd.(a)(b):
Series2013-4A, Class DRR, (LIBOR USD 3 Month + 2.80%), 5.56%, 04/27/31			1,500		1,433,862
Series2014-2RA, Class A3, (LIBOR USD 3 Month + 1.90%), 4.68%, 04/24/30			2,000		1,928,404
Series2014-4RA, Class B, (LIBOR USD 3 Month + 2.20%), 4.97%, 10/17/30			850		839,775
Series2014-4RA, Class C, (LIBOR USD 3 Month + 3.20%), 5.97%, 10/17/30			2,508		2,493,458
Series2017-1A, Class D, (LIBOR USD 3 Month + 3.50%), 6.26%, 04/23/29			1,500		1,500,185
Series2017-3A, Class C, (LIBOR USD 3 Month + 3.65%), 6.41%, 07/20/30			1,000		985,176
Series2018-1A, Class C, (LIBOR USD 3 Month + 1.75%), 4.53%, 04/18/31			1,200		1,147,976
Series2018-1A, Class D, (LIBOR USD 3 Month + 2.65%), 5.43%, 04/18/31			1,500		1,430,788
Series2018-4A, Class B, (LIBOR USD 3 Month + 2.10%), 4.53%, 10/17/31			1,050		1,021,374
Clear Creek CLO Ltd., Series2015-1A, Class DR, (LIBOR USD 3 Month + 2.95%), 5.71%, 10/20/30(a)(b)			1,350		1,292,859
CVC Cordatus Loan Fund VIII DAC(a):
Series 8X, Class E, (EURIBOR 3 Month + 5.70%), 5.70%, 04/23/30	EUR		1,600		1,770,689
Series 8X, Class F, (EURIBOR 3 Month + 7.65%), 4.90%, 04/23/30			551		582,389
Dewolf Park CLO Ltd., Series2017-1A, Class C, (LIBOR USD 3 Month + 2.15%), 4.94%, 10/15/30(a)(b)	USD		1,000		980,805
Dryden 37 Senior Loan Fund, Series2015-37A, Class DR, (LIBOR USD 3 Month + 2.50%), 5.29%, 01/15/31(a)(b)			2,000		1,884,364
Dryden 50 Senior Loan Fund, Series2017-50A, Class C, (LIBOR USD 3 Month + 2.25%), 5.04%, 07/15/30(a)(b)			3,000		2,959,069
Dryden Senior Loan Fund, Series2014-36A, Class DR, (LIBOR USD 3 Month + 4.24%), 7.03%, 01/15/28(a)(b)			1,000		1,000,636
Elevation CLO Ltd., Series2013-1A, Class CR, (LIBOR USD 3 Month + 4.68%), 7.36%, 11/15/28(a)(b)			800		802,000
Euro-Galaxy V CLO BV, Series2016-5X, Class E, (EURIBOR 3 Month + 6.30%), 6.30%, 11/10/30(a)	EUR		700		787,183

Security		Par (000)		Value
Asset-Backed Securities (continued)
Fillmore Park CLO Ltd., Series2018-1A, Class D, (LIBOR USD 3 Month + 2.90%), 5.69%, 07/15/30(a)(b)	USD		1,000	$	968,186
Galaxy XV CLO Ltd., Series2013-15A, Class BR, (LIBOR USD 3 Month + 1.60%), 4.39%, 10/15/30(a)(b)			250		245,517
Galaxy XVIII CLO Ltd., Series2018-28A, Class C, (LIBOR USD 3 Month + 1.95%), 4.74%, 07/15/31(a)(b)			250		241,321
Galaxy XXIV CLO Ltd., Series2017-24A, Class C, (LIBOR USD 3 Month + 1.70%), 4.49%, 01/15/31(a)(b)			500		473,323
Galaxy XXIX CLO Ltd.(a)(b):
Series2018-29A, Class C, (LIBOR USD 3 Month + 1.68%), 4.36%, 11/15/26			1,500		1,477,221
Series2018-29A, Class D, (LIBOR USD 3 Month + 2.40%), 5.08%, 11/15/26			2,150		2,067,101
Galaxy XXV CLO Ltd., Series2018-25A, Class D, (LIBOR USD 3 Month + 3.10%), 5.44%, 10/25/31(a)(b)			500		488,483
Galaxy XXVI CLO Ltd.(a)(b):
Series2018-26A, Class B, (LIBOR USD 3 Month + 1.70%), 4.35%, 11/22/31			250		246,599
Series2018-26A, Class D, (LIBOR USD 3 Month + 3.05%), 5.70%, 11/22/31			250		243,273
Galaxy XXVII CLO Ltd., Series2018-27A, Class D, (LIBOR USD 3 Month + 2.75%), 5.43%, 05/16/31(a)(b)			1,500		1,432,896
Gilbert Park CLO Ltd., Series2017-1A, Class E, (LIBOR USD 3 Month + 6.40%), 9.19%, 10/15/30(a)(b)			1,500		1,473,969
Goldentree Loan Management US CLO Ltd.(a)(b):
Series2018-3A, Class C, (LIBOR USD 3 Month + 1.90%), 4.66%, 04/20/30			2,500		2,416,579
Series2018-3A, Class D, (LIBOR USD 3 Month + 2.85%), 5.61%, 04/20/30			2,000		1,936,121
Greenwood Park CLO Ltd., Series2018-1A, Class D, (LIBOR USD 3 Month + 2.50%), 5.29%, 04/15/31(a)(b)			1,450		1,376,628
Greywolf CLO V Ltd., Series2015-1A, Class CR, (LIBOR USD 3 Month + 3.00%), 5.77%, 01/27/31(a)(b)			2,000		1,896,777
GT Loan Financing I Ltd., Series2013-1A, Class CR, (LIBOR USD 3 Month + 2.10%), 4.86%, 07/28/31(a)(b)			1,000		977,191
Harvest CLO XVI DAC, Series 16X, Class ER, (EURIBOR 3 Month + 5.57%), 5.57%, 10/15/31(a)	EUR		1,125		1,206,604
Highbridge Loan Management Ltd.(a)(b):
Series12A-18, Class A2, (LIBOR USD 3 Month + 1.50%), 4.28%, 07/18/31	USD		1,250		1,221,324
Series12A-18, Class B, (LIBOR USD 3 Month + 1.85%), 4.63%, 07/18/31			2,500		2,416,778
Series12A-18, Class C, (LIBOR USD 3 Month + 2.75%), 5.53%, 07/18/31			1,250		1,197,254
Series8A-2016, Class DR, (LIBOR USD 3 Month + 2.90%), 5.66%, 07/20/30			1,500		1,440,258
Jamestown CLO IV Ltd., Series2014-4A, 0.00%, 07/15/26(b)(c)			2,000		272,228
LCM XIV LP(a)(b):
Series 14A, Class BR, (LIBOR USD 3 Month + 1.58%), 4.34%, 07/20/31			1,000		988,862

SCHEDULES OF INVESTMENTS 45

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 14A, Class CR, (LIBOR USD 3 Month + 1.85%), 4.61%, 07/20/31	USD		1,550	$	1,494,892
LCM XV LP, Series 15A, Class CR, (LIBOR USD 3 Month + 2.40%), 5.16%, 07/20/30(a)(b)			1,000		999,377
LCM XVIII LP, Series 18A, Class INC, 0.00%, 04/20/31(b)(c)			3,065		1,772,024
LCM XXIV Ltd., Series 24A, Class C, (LIBOR USD 3 Month + 2.25%), 5.01%, 03/20/30(a)(b)			250		246,057
LCM XXV Ltd., Series 25A, Class B2, (LIBOR USD 3 Month + 1.65%), 4.41%, 07/20/30(a)(b)			3,156		3,130,262
Madison Park Funding X Ltd.(a)(b):
Series2012-10A, Class DR, (LIBOR USD 3 Month + 4.20%), 6.96%, 01/20/29			5,000		5,000,234
Series2012-10A, Class ER, (LIBOR USD 3 Month + 7.62%), 10.38%, 01/20/29			2,000		1,993,954
Madison Park Funding XIII Ltd.(a)(b):
Series2014-13A, Class CR2, (LIBOR USD 3 Month + 1.90%), 4.66%, 04/19/30			1,500		1,462,326
Series2014-13A, Class DR2, (LIBOR USD 3 Month + 2.85%), 5.61%, 04/19/30			3,000		2,926,349
Madison Park Funding XV Ltd., Series2014-15A, Class B1R, (LIBOR USD 3 Month + 2.20%), 4.96%, 01/27/26(a)(b)			1,000		998,620
Madison Park Funding XXV Ltd., Series2017-25A, Class B, (LIBOR USD 3 Month + 2.35%), 5.12%, 04/25/29(a)(b)			1,000		996,073
Madison Park Funding XXVII Ltd.,Series 2018-27A, Class C, (LIBOR USD 3 Month + 2.60%), 5.36%, 04/20/30(a)(b)			1,000		952,270
Madison Park Funding XXXI Ltd., Series2018-31A, Class B, (LIBOR USD 3 Month + 1.70%), 4.48%, 01/23/31(a)(b)			500		497,387
Man GLG Euro CLO IV DAC, Series 4X, Class E, (EURIBOR 3 Month + 4.27%), 4.27%, 05/15/31(a)	EUR		1,400		1,376,107
Mill Creek II CLO Ltd., Series2016-1A, Class E, (LIBOR USD 3 Month + 7.75%), 10.51%, 04/20/28(a)(b)	USD		1,000		1,001,990
Neuberger Berman CLO XVIII Ltd.(a)(b):
Series2014-18A, Class BR2, (LIBOR USD 3 Month + 2.15%), 4.91%, 10/21/30			1,500		1,460,794
Series2014-18A, Class CR2, (LIBOR USD 3 Month + 3.00%), 5.76%, 10/21/30			3,250		3,138,274
Neuberger Berman CLOXVI-S Ltd., Series 2017-16SA, Class D, (LIBOR USD 3 Month + 2.50%), 5.29%, 01/15/28(a)(b)			1,000		962,005
Neuberger Berman CLO XXI Ltd.,Series 2016-21A, Class DR, (LIBOR USD 3 Month + 2.40%), 5.16%, 04/20/27(a)(b)			1,000		956,498
Neuberger Berman CLO XXII Ltd.(a)(b):
Series2016-22A, Class CR, (LIBOR USD 3 Month + 2.20%), 4.97%, 10/17/30			1,250		1,226,314
Series2016-22A, Class DR, (LIBOR USD 3 Month + 3.10%), 5.87%, 10/17/30			3,750		3,581,412
Neuberger Berman CLO XXIII Ltd.,Series 2016-23A, Class CR, (LIBOR USD 3 Month + 2.15%), 4.92%, 10/17/27(a)(b)			1,400		1,380,286
Neuberger Berman Loan Advisers CLO Ltd.(a)(b):
Series2018-27A, Class D, (LIBOR USD 3 Month + 2.60%), 5.39%, 01/15/30			1,000		953,830
Series2018-28A, Class D, (LIBOR USD 3 Month + 2.85%), 5.61%, 04/20/30			1,500		1,448,020

Security		Par (000)		Value
Asset-Backed Securities (continued)
Oak Hill Credit PartnersX-R Ltd.(a)(b):
Series 2014-10RA, Class B, (LIBOR USD 3 Month + 1.75%), 4.53%, 12/12/30	USD		4,750	$	4,700,400
Series 2014-10RA, Class C, (LIBOR USD 3 Month + 2.20%), 4.98%, 12/12/30			1,522		1,483,220
OCP Euro CLO DAC(a):
Series2017-2X, Class E, (EURIBOR 3 Month + 5.00%), 5.00%, 01/15/32	EUR		1,347		1,443,676
Series2017-2X, Class F, (EURIBOR 3 Month + 6.40%), 6.40%, 01/15/32			900		880,845
OCP Euro DAC, Series2017-1X, Class E, (EURIBOR 3 Month + 5.35%), 5.35%, 06/18/30(a)			1,700		1,840,920
OCT26, Series2016-1, Class AR, (LIBOR USD 3 Month + 1.80%), 4.59%, 04/20/31(a)	USD		1,000		953,058
Octagon Investment Partners 31 LLC,Series 2017-1A, Class E, (LIBOR USD 3 Month + 6.30%), 9.06%, 07/20/30(a)(b)			1,000		979,994
Octagon Investment Partners 33 Ltd.,Series 2017-1A, Class C, (LIBOR USD 3 Month + 2.75%), 5.51%, 01/20/31(a)(b)			1,750		1,681,683
Octagon Investment Partners 34 Ltd.,Series 2017-1A, Class C2, (LIBOR USD 3 Month + 1.75%), 4.51%, 01/20/30(a)(b)			522		500,500
Octagon Investment Partners 35 Ltd.,Series 2018-1A, Class C, (LIBOR USD 3 Month + 2.60%), 5.36%, 01/20/31(a)(b)			850		808,900
Octagon Investment Partners 37 Ltd.,Series 2018-2A, Class B, (LIBOR USD 3 Month + 1.75%), 4.52%, 07/25/30(a)(b)			300		286,532
Octagon Investment Partners 39 Ltd.,Series 2018-3A, Class E, (LIBOR USD 3 Month + 5.75%), 8.21%, 10/20/30(a)(b)			300		285,660
Octagon Investment Partners XVI Ltd.,Series 2013-1A, Class CR, (LIBOR USD 3 Month + 1.85%), 4.62%, 07/17/30(a)(b)			250		240,202
Octagon Investment Partners XVII Ltd.(a)(b):
Series2013-1A, Class CR2, (LIBOR USD 3 Month + 1.70%), 4.47%, 01/25/31			1,850		1,770,417
Series2013-1A, Class DR2, (LIBOR USD 3 Month + 2.50%), 5.27%, 01/25/31			1,000		942,523
Octagon Investment Partners XXII Ltd.(a)(b):
Series2014-1A, Class CRR, (LIBOR USD 3 Month + 1.90%), 4.66%, 01/22/30			1,000		968,459
Series2014-1A, Class DRR, (LIBOR USD 3 Month + 2.75%), 5.51%, 01/22/30			1,750		1,675,722
Series2014-1A, Class ERR, (LIBOR USD 3 Month + 5.45%), 8.21%, 01/22/30			453		414,140
Octagon Investment Partners XXIII Ltd.,Series 2015-1A, Class CR, (LIBOR USD 3 Month + 1.85%), 4.64%, 07/15/27(a)(b)			750		732,429
OHA Credit Partners XI Ltd.(a)(b):
Series2015-11A, Class DR, (LIBOR USD 3 Month + 2.95%), 5.71%, 01/20/32			534		517,003
Series2015-11A, Class ER, (LIBOR USD 3 Month + 5.75%), 8.51%, 01/20/32			2,250		2,103,722
OHA Credit Partners XII Ltd., Series2015-12A, Class DR, (LIBOR USD 3 Month + 2.90%), 5.67%, 07/23/30(a)(b)			1,250		1,203,103
OHA Loan Funding Ltd., Series2013-1A, Class DR2, (LIBOR USD 3 Month + 3.05%), 5.82%, 07/23/31(a)(b)			500		486,166

46 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
OZLM Funding IV Ltd., Series2013-4A, Class BR, (LIBOR USD 3 Month + 2.20%), 4.96%, 10/22/30(a)(b)	USD		3,000	$	2,904,442
OZLM Funding Ltd., Series2012-1A, Class CR2, (LIBOR USD 3 Month + 3.60%), 6.36%, 07/22/29(a)(b)			1,000		995,094
OZLM VI Ltd.(a)(b):
Series2014-6A, Class A2AS, (LIBOR USD 3 Month + 1.75%), 4.52%, 04/17/31			1,500		1,481,509
Series2014-6A, Class B1S, (LIBOR USD 3 Month + 2.10%), 4.87%, 04/17/31			3,000		2,900,769
Series2014-6A, Class CS, (LIBOR USD 3 Month + 3.13%), 5.90%, 04/17/31			2,000		1,935,724
OZLM XIX Ltd., Series2017-19A, Class C, (LIBOR USD 3 Month + 3.10%), 5.89%, 11/22/30(a)(b)			1,250		1,210,924
OZLM XX Ltd.(a)(b):
Series2018-20A, Class B, (LIBOR USD 3 Month + 1.95%), 4.71%, 04/20/31			1,550		1,490,412
Series2018-20A, Class C, (LIBOR USD 3 Month + 2.95%), 5.71%, 04/20/31			1,000		965,251
OZLME BV, Series 1X, Class E, (EURIBOR 3 Month + 6.45%), 6.45%, 01/18/30(a)	EUR		990		1,113,100
OZLME II DAC, Series 2X, Class E, (EURIBOR 3 Month + 4.90%), 4.90%, 10/15/30(a)			807		844,064
OZLME III DAC, Series 3X, Class E, (EURIBOR 3 Month + 4.80%), 4.80%, 08/24/30(a)			1,000		1,037,094
Palmer Square CLO Ltd.(a)(b):
Series2013-2A, Class BRR, (LIBOR USD 3 Month + 2.20%), 4.97%, 10/17/31	USD		332		325,730
Series2014-1A, Class CR2, (LIBOR USD 3 Month + 2.65%), 5.42%, 01/17/31			1,825		1,736,928
Series2014-1A, Class DR2, (LIBOR USD 3 Month + 5.70%), 8.47%, 01/17/31			1,500		1,417,939
Series2015-1A, Class BR, (LIBOR USD 3 Month + 2.55%), 5.19%, 05/21/29			3,500		3,503,073
Series2015-1A, Class CR, (LIBOR USD 3 Month + 3.50%), 6.14%, 05/21/29			1,750		1,750,196
Series2018-2A, Class D, (LIBOR USD 3 Month + 5.60%), 8.38%, 07/16/31			1,000		945,517
Park Avenue Institutional Advisers CLO Ltd.,Series 2016-1A, Class A2R, (LIBOR USD 3 Month + 1.80%), 4.45%, 08/23/31(a)(b)			1,050		1,035,991
Regatta VII Funding Ltd.(a)(b):
Series2016-1A, Class CR, (LIBOR USD 3 Month + 2.00%), 4.63%, 12/20/28			750		728,329
Series2016-1A, Class DR, (LIBOR USD 3 Month + 2.75%), 5.38%, 12/20/28			2,000		1,942,892
Rockford Tower CLO Ltd.(a)(b):
Series2017-3A, Class D, (LIBOR USD 3 Month + 2.65%), 5.41%, 10/20/30			1,000		946,863
Series2018-1A, Class B, (LIBOR USD 3 Month + 1.72%), 4.36%, 05/20/31			1,000		986,131
Series2018-2A, Class B, (LIBOR USD 3 Month + 1.80%), 4.23%, 10/20/31			500		494,973
Series2018-2A, Class C, (LIBOR USD 3 Month + 2.20%), 4.63%, 10/20/31			750		735,097
Series2018-2A, Class D, (LIBOR USD 3 Month + 3.10%), 5.53%, 10/20/31			1,000		970,626
RR Ltd., Series2018-5A, Class B, (LIBOR USD 3 Month + 2.25%), 5.04%, 10/15/31(a)(b)			1,000		982,556
Seneca Park CLO Ltd., Series2014-1A, 0.00%, 07/17/26(b)(c)			2,500		383,575

Security		Par (000)		Value
Asset-Backed Securities (continued)
Stewart Park CLO Ltd., Series2015-1A, Class DR, (LIBOR USD 3 Month + 2.60%), 5.39%, 01/15/30(a)(b)	USD		2,500	$	2,380,306
Symphony CLO XVIII Ltd., Series2016-18A, Class D, (LIBOR USD 3 Month + 4.00%), 6.77%, 01/23/28(a)(b)			1,000		975,716
TIAA CLO IV Ltd., Series2018-1A, Class A2, (LIBOR USD 3 Month + 1.70%), 4.52%, 01/20/32(a)(b)			2,000		1,969,076
TICP CLO XI Ltd.(a)(b):
Series2018-11A, Class C, (LIBOR USD 3 Month + 2.15%), 4.59%, 10/20/31			1,814		1,768,718
Series2018-11A, Class D, (LIBOR USD 3 Month + 3.05%), 5.49%, 10/20/31			1,150		1,123,336
TICP CLO XII Ltd., Series2018-12A, Class D, (LIBOR USD 3 Month + 2.80%), 5.61%, 01/15/31(a)(b)			4,500		4,369,302
Treman Park CLO Ltd.(a)(b):
Series2015-1A, Class C3RR, (LIBOR USD 3 Month + 2.00%), 4.76%, 10/20/28			250		245,991
Series2015-1A, Class DRR, (LIBOR USD 3 Month + 2.65%), 5.41%, 10/20/28			1,800		1,752,617
TRESTLES CLO II Ltd.(a)(b):
Series2018-2A, Class B, (LIBOR USD 3 Month + 1.90%), 4.67%, 07/25/31			1,250		1,187,914
Series2018-2A, Class C, (LIBOR USD 3 Month + 2.90%), 5.67%, 07/25/31			1,000		962,451
Unique Pub Finance Co. plc (The), Series A4, 5.66%, 06/30/27	GBP		1,747		2,505,689
Voya CLO Ltd.(a)(b):
Series2014-1A, Class BR2, (LIBOR USD 3 Month + 1.90%), 4.68%, 04/18/31	USD		2,000		1,933,459
Series2014-1A, Class CR2, (LIBOR USD 3 Month + 2.80%), 5.58%, 04/18/31			1,000		952,470
Series2014-2A, Class A2AR, (LIBOR USD 3 Month + 1.65%), 4.42%, 04/17/30			750		743,622
Series2014-4A, Class BR2, (LIBOR USD 3 Month + 2.09%), 4.89%, 07/14/31			1,468		1,426,521
Series2017-2A, Class D, (LIBOR USD 3 Month + 6.02%), 8.81%, 06/07/30			600		574,477
Webster Park CLO Ltd., Series2015-1A, Class CR, (LIBOR USD 3 Month + 2.90%), 5.66%, 07/20/30(a)(b)			1,000		960,742
Westcott Park CLO Ltd., Series2016-1A, Class D, (LIBOR USD 3 Month + 4.35%), 7.11%, 07/20/28(a)(b)			1,250		1,251,757
York CLO 1 Ltd.(a)(b):
Series2014-1A, Class BRR, (LIBOR USD 3 Month + 1.65%), 4.41%, 10/22/29			950		936,654
Series2014-1A, Class CRR, (LIBOR USD 3 Month + 2.10%), 4.86%, 10/22/29			1,500		1,469,821
YorkCLO-2 Ltd., Series2015-1A, Class CR, (LIBOR USD 3 Month + 1.85%), 4.61%, 01/22/31(a)(b)			1,000		966,873
YorkCLO-3 Ltd.(a)(b):
Series2016-1A, Class DR, (LIBOR USD 3 Month + 3.60%), 6.36%, 10/20/29			3,000		3,000,994
Series2016-1A, Class ER, (LIBOR USD 3 Month + 6.40%), 9.16%, 10/20/29			2,250		2,181,819
Total Asset-Backed Securities — 2.3% (Cost: $386,390,093)					371,602,588

SCHEDULES OF INVESTMENTS 47

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Shares		Value
Common Stocks — 1.5%
Auto Components — 0.2%
UCI International, Inc.(d)(e)			1,260,653	$	28,364,696
Chemicals — 0.3%
Element Solutions, Inc.(d)			4,680,438		47,272,424
Commercial Services & Supplies — 0.0%
FreedomPay, Inc.(d)(e)			314,534		—
Containers & Packaging — 0.2%
Crown Holdings, Inc.(d)			444,063		24,232,518
Diversified Financial Services — 0.0%(d)
Adelphia Recovery Trust			240,741		265
Adelphia Recovery Trust			1,229,633		720
					985
Equity Real Estate Investment Trusts (REITs) — 0.1%
Gaming and Leisure Properties, Inc.			464,262		17,906,585
Hotels, Restaurants & Leisure — 0.4%
Star Group, Inc. (The)(d)			4,035,357		70,539,858
Media — 0.1%
Altice USA, Inc., Class A			878,824		18,877,140
Metals & Mining — 0.1%
Constellium NV, Class A(d)			2,522,574		20,130,141
Oil, Gas & Consumable Fuels — 0.1%(d)(e)
KCAD Holdings I Ltd.			4,067,849,248		7,810,270
Osum Oil Sands Corp.(f)			1,600,000		2,167,097
					9,977,367
Semiconductors & Semiconductor Equipment — 0.0%
SunPower Corp.(d)			1,369		8,912
Textiles, Apparel & Luxury Goods — 0.0%
Levi Strauss & Co., Class A(d)			5,469		128,795
Total Common Stocks — 1.5% (Cost: $283,248,777)					237,439,421
		Par (000)
Corporate Bonds — 82.9%
Aerospace & Defense — 4.2%
Arconic, Inc.:
5.40%, 04/15/21	USD		5,357		5,524,674
5.87%, 02/23/22			9,751		10,238,550
5.13%, 10/01/24			46,329		47,433,020
BBA US Holdings, Inc., 5.38%, 05/01/26(b)			12,290		12,658,700
Bombardier, Inc.(b):
8.75%, 12/01/21			35,626		39,366,730
5.75%, 03/15/22			16,405		16,794,619
6.00%, 10/15/22			1,093		1,102,564
6.13%, 01/15/23			25,932		26,288,565
7.50%, 12/01/24			52,332		54,359,865
7.50%, 03/15/25			31,942		32,860,332
7.88%, 04/15/27			71,814		74,079,732
BWX Technologies, Inc., 5.38%, 07/15/26(b)			13,264		13,462,960
Kratos Defense & Security Solutions, Inc., 6.50%, 11/30/25(b)			17,777		18,732,514
Leonardo US Holdings, Inc., 6.25%, 01/15/40(b)			177		162,840
Pioneer Holdings LLC, 9.00%, 11/01/22(b)			7,818		7,952,860

		Par (000)
Aerospace & Defense (continued)
TransDigm UK Holdings plc, 6.88%, 05/15/26(b)	USD		14,338	$	14,266,310
TransDigm, Inc.:
6.00%, 07/15/22			6,055		6,153,394
6.50%, 05/15/25			1,330		1,350,083
6.25%, 03/15/26(b)			281,432		293,111,428
6.38%, 06/15/26			8,965		8,874,005
7.50%, 03/15/27(b)			3,189		3,268,725
					688,042,470
Air Freight & Logistics — 0.0%
XPO Logistics, Inc., 6.75%, 08/15/24(b)			955		974,100
Auto Components — 1.2%
Allison Transmission, Inc., 5.88%, 06/01/29(b)			11,128		11,253,190
GKN Holdings Ltd., 3.38%, 05/12/32	GBP		2,600		3,321,406
Icahn Enterprises LP:
6.25%, 02/01/22	USD		618		633,975
6.75%, 02/01/24			10,994		11,461,245
6.38%, 12/15/25			18,702		19,146,173
LKQ Italia Bondco SpA, 3.88%, 04/01/24	EUR		1,306		1,562,428
Panther BF Aggregator 2 LP:
4.38%, 05/15/26			4,068		4,648,201
6.25%, 05/15/26(b)	USD		63,714		64,988,280
8.50%, 05/15/27(b)			75,110		75,297,775
					192,312,673
Automobiles — 0.1%
Tesla, Inc., 5.30%, 08/15/25(b)(g)			18,849		16,304,385
Banks — 1.2%
ABN AMRO Bank NV, (EUR Swap Annual 5 Year + 5.45%), 5.75%(a)(h)	EUR		1,900		2,206,348
Allied Irish Banks plc(a):
(EUR Swap Annual 5 Year + 7.34%), 7.38%(h)			1,244		1,486,162
(EUR Swap Annual 5 Year + 3.95%), 4.13%, 11/26/25			4,878		5,695,489
Banco Bilbao Vizcaya Argentaria SA(a)(h):
(EUR Swap Annual 5 Year + 6.60%), 6.75%			1,800		2,067,804
(EUR Swap Annual 5 Year + 9.18%), 8.88%			1,600		1,973,411
Banco BPM SpA, 1.75%, 04/24/23			1,653		1,835,729
Banco de Sabadell SA, (EUR Swap Annual 5 Year + 5.10%), 5.38%, 12/12/28(a)			1,400		1,611,407
Banco Espirito Santo SA(d)(i):
2.63%, 05/08/17			10,400		3,208,205
4.75%, 01/15/18			12,300		3,966,788
4.00%, 01/21/19			12,000		3,769,080
Banco Santander SA(a)(h):
(EUR Swap Annual 5 Year + 6.80%), 6.75%			900		1,070,150
(EUR Swap Annual 5 Year + 4.10%), 4.75%			1,400		1,364,231
Bank of America Corp., (LIBOR USD 3 Month + 3.39%), 5.13%(a)(h)	USD		630		627,787
Bank of Ireland, (EUR Swap Annual 5 Year + 6.96%), 7.38%(a)(h)	EUR		2,836		3,344,298
Bankia SA(a)(h):
(EUR Swap Annual 5 Year + 5.82%), 6.00%			2,400		2,634,765
(EUR Swap Annual 5 Year + 6.22%), 6.37%			800		878,330
Barclays plc:
4.38%, 09/11/24	USD		28,717		28,665,052
(EUR Swap Annual 5 Year + 2.45%), 2.63%, 11/11/25(a)	EUR		2,500		2,828,381
5.20%, 05/12/26	USD		7,800		7,956,491
BNP Paribas SA, (EUR Swap Annual 5 Year + 5.23%), 6.12%(a)(h)	EUR		2,380		2,913,541

48 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
CaixaBank SA(a)(h):
(EUR Swap Annual 5 Year + 6.50%), 6.75%	EUR		600	$	699,014
(EUR Swap Annual 5 Year + 4.50%), 5.25%			1,600		1,571,699
CIT Group, Inc.:
5.00%, 08/01/23	USD		3,919		4,110,051
4.75%, 02/16/24			2		2,075
5.25%, 03/07/25			11,952		12,717,526
6.13%, 03/09/28			10,784		11,997,200
6.00%, 04/01/36			20,937		20,047,177
Cooperatieve Rabobank UA, (EUR Swap Annual 5 Year + 5.25%), 5.50%(a)(h)	EUR		1,452		1,686,997
Credit Agricole SA, (EUR Swap Annual 5 Year + 5.12%), 6.50%(a)(h)			4,637		5,564,301
Erste Group Bank AG(a)(h):
(EUR Swap Annual 5 Year + 9.02%), 8.88%			1,600		2,044,923
(EUR Swap Annual 5 Year + 6.20%), 6.50%			1,200		1,482,151
Hongkong & Shanghai Banking Corp. Ltd. (The), Series 3H, (LIBOR USD 3 Month + 0.00%), 2.94%(a)(h)	USD		2,290		1,619,213
HSBC Holdings plc, (USD Swap Rate 5 Year + 3.75%), 6.00%(a)(h)			24,053		23,848,549
ING Groep NV, (USD Swap Semi 5 Year + 4.20%), 6.75%(a)(h)			2,764		2,737,598
Intesa Sanpaolo SpA:
(EUR Swap Annual 5 Year + 6.88%), 7.00%(a)(h)	EUR		2,599		3,032,045
6.63%, 09/13/23			228		303,631
(EUR Swap Annual 5 Year + 7.19%), 7.75%(a)(h)			955		1,160,965
National Westminster Bank plc, Series C, (LIBOR USD 3 Month + 0.25%), 2.88%(a)(h)	USD		1,240		968,390
Royal Bank of Scotland Group plc, (USD Swap Semi 5 Year + 7.60%), 8.62%(a)(h)			6,571		6,998,115
UBS Group Funding Switzerland AG, (EUR Swap Annual 5 Year + 5.29%), 5.75%(a)(h)	EUR		5,238		6,403,790
UniCredit SpA:
(EUR Swap Annual 5 Year + 6.10%), 6.75%(a)(h)			622		686,265
6.57%, 01/14/22(b)	USD		2,800		2,929,971
(EUR Swap Annual 5 Year + 9.30%), 9.25%(a)(h)	EUR		2,294		2,840,402
(EUR Swap Annual 5 Year + 4.10%), 5.75%, 10/28/25(a)			3,000		3,535,411
(EURIBOR Swap Rate 5 Year + 7.33%), 7.50%(a)(h)			1,075		1,234,521
(EUR Swap Annual 5 Year + 4.32%), 4.38%, 01/03/27(a)			500		578,217
Unione di Banche Italiane SpA, (EUR Swap Annual 5 Year + 5.75%), 5.88%, 03/04/29(a)			1,800		2,039,422
					202,943,068
Building Products — 0.7%(b)
CPG Merger Sub LLC, 8.00%, 10/01/21	USD		19,335		19,238,325
James Hardie International Finance DAC, 4.75%, 01/15/25			2,080		2,048,800
JELD-WEN, Inc.:
4.63%, 12/15/25			7,385		7,015,750
4.88%, 12/15/27			96		90,480
Masonite International Corp.:
5.63%, 03/15/23			593		606,342
5.75%, 09/15/26			7,910		8,068,200
PGT Escrow Issuer, Inc., 6.75%, 08/01/26			5,247		5,443,763

Security		Par (000)		Value
Building Products (continued)
Standard Industries, Inc.:
5.38%, 11/15/24	USD		25,270	$	25,901,750
6.00%, 10/15/25			23,273		24,368,925
5.00%, 02/15/27			1,667		1,613,323
4.75%, 01/15/28			4,592		4,385,360
USG Corp., 4.88%, 06/01/27			7,242		7,318,946
					106,099,964
Capital Markets — 1.4%
Arrow Bidco LLC, 9.50%, 03/15/24(b)			8,660		8,584,225
Blackstone CQP Holdco LP(b):
6.50%, 03/20/21			133,548		133,214,130
6.00%, 08/18/21			21,762		21,653,190
Credit Suisse Group AG(a)(h):
(USD Swap Semi 5 Year + 4.60%), 7.50%(b)			6,617		6,807,239
(USD Swap Semi 5 Year + 4.60%), 7.50%			969		1,024,663
Eagle Holding Co. II LLC, 7.63% (7.63% Cash or 8.38% PIK), 05/15/22(b)(j)			9,865		9,951,319
FS Energy & Power Fund, 7.50%, 08/15/23(b)			3,643		3,736,352
Lehman Brothers Holdings Capital Trust Escrow Bonds(d)(i):
5.38%, 10/17/12	EUR		4,550		114,839
4.75%, 01/16/14			14,545		367,107
(EURIBOR 3 Month + 0.30%), 0.00%, 02/05/14(a)			22,800		575,458
Lions Gate Capital Holdings LLC(b):
6.38%, 02/01/24	USD		1,199		1,217,384
5.88%, 11/01/24			10,367		10,665,051
LPL Holdings, Inc., 5.75%, 09/15/25(b)			3,817		3,865,857
MSCI, Inc.(b):
5.25%, 11/15/24			7,310		7,564,388
5.75%, 08/15/25			193		202,650
Pershing Square Holdings Ltd., 5.50%, 07/15/22(b)			14,000		14,190,400
					223,734,252
Chemicals — 2.3%
Alpha 2 BV, 8.75% (8.75% Cash or 9.50% PIK), 06/01/23(b)(j)			12,936		12,580,260
Alpha 3 BV, 6.25%, 02/01/25(b)			63,370		61,152,050
Axalta Coating Systems LLC, 4.88%, 08/15/24(b)			29,313		29,349,641
Blue Cube Spinco LLC:
9.75%, 10/15/23			34,113		37,950,712
10.00%, 10/15/25			38,190		43,691,270
Chemours Co. (The):
6.63%, 05/15/23			7,860		8,125,982
4.00%, 05/15/26	EUR		6,252		7,093,552
5.38%, 05/15/27	USD		14,714		14,617,329
Element Solutions, Inc., 5.88%, 12/01/25(b)			69,331		69,580,592
Gates Global LLC, 6.00%, 07/15/22(b)			15,663		15,724,242
GCB MPM Escrow LLC, 8.88%, 10/15/20(d)(e)(i)			22,758		2
GCP Applied Technologies, Inc., 5.50%, 04/15/26(b)			12,759		12,982,282
INEOS Group Holdings SA, 5.38%, 08/01/24	EUR		1,217		1,402,391
Momentive Performance Materials, Inc., 3.88%, 10/24/21	USD		8,937		9,629,618
Monitchem HoldCo 3 SA, 5.25%, 06/15/21	EUR		525		588,183
NOVA Chemicals Corp., 4.88%, 06/01/24(b)	USD		6,571		6,456,008
Olin Corp.:
5.50%, 08/15/22			255		266,475
5.13%, 09/15/27			3,812		3,854,885
PQ Corp.(b):
6.75%, 11/15/22			16,292		16,902,950
5.75%, 12/15/25			25,889		25,209,414

SCHEDULES OF INVESTMENTS 49

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Chemicals (continued)
Solvay Finance SA, (EUR Swap Annual 5 Year + 4.89%), 5.12%(a)(h)	EUR		2,308	$	2,805,051
Solvay SA, (EUR Swap Annual 5 Year + 3.92%), 4.25%(a)(h)			500		601,074
					380,563,963
Commercial Services & Supplies — 2.2%
AA Bond Co. Ltd.:
4.25%, 07/31/20	GBP		159		210,597
2.88%, 01/31/22			900		1,120,725
4.88%, 07/31/24			1,729		2,232,232
ADT Security Corp. (The):
6.25%, 10/15/21	USD		944		990,303
3.50%, 07/15/22			14,753		14,218,204
4.13%, 06/15/23			6,958		6,710,991
4.88%, 07/15/32(b)			11,692		9,470,520
Advanced Disposal Services, Inc., 5.63%, 11/15/24(b)			7,918		8,076,360
Algeco Global Finance plc:
6.50%, 02/15/23	EUR		5,000		5,832,629
8.00%, 02/15/23(b)	USD		18,129		18,174,322
APX Group, Inc.:
8.75%, 12/01/20			15,167		14,939,495
7.88%, 12/01/22			3,946		3,955,470
Aramark Services, Inc.:
5.00%, 04/01/25(b)			6,323		6,474,752
4.75%, 06/01/26			569		567,577
5.00%, 02/01/28(b)			28,910		28,790,891
Brink’s Co. (The), 4.63%, 10/15/27(b)			975		940,875
GFL Environmental, Inc., 5.38%, 03/01/23(b)			5,490		5,188,050
Harland Clarke Holdings Corp., 8.38%, 08/15/22(b)			7,544		6,802,425
Hulk Finance Corp., 7.00%, 06/01/26(b)			4,489		4,253,327
Intrum AB, 2.75%, 07/15/22	EUR		1,871		2,064,095
KAR Auction Services, Inc., 5.13%, 06/01/25(b)	USD		3,064		3,029,530
Matthews International Corp., 5.25%, 12/01/25(b)			2,017		1,936,320
Mobile Mini, Inc., 5.88%, 07/01/24			32,061		32,622,067
Nielsen Co. Luxembourg SARL (The), 5.00%, 02/01/25(b)			5,499		5,285,914
Nielsen Finance LLC, 5.00%, 04/15/22(b)			34,007		33,581,912
Paprec Holding SA, 4.00%, 03/31/25	EUR		973		923,836
Prime Security Services Borrower LLC(b):
9.25%, 05/15/23	USD		25,071		26,324,550
5.25%, 04/15/24			25,838		25,838,000
5.75%, 04/15/26			28,887		28,893,066
Ritchie Bros Auctioneers, Inc., 5.38%, 01/15/25(b)			4,573		4,664,460
SPIE SA, 3.13%, 03/22/24	EUR		1,000		1,151,165
Star Merger Sub, Inc., 6.88%, 08/15/26(b)	USD		26,506		27,102,385
Techem Verwaltungsgesellschaft 674 mbH, 6.00%, 07/30/26	EUR		1,200		1,392,605
Tervita Escrow Corp., 7.63%, 12/01/21(b)	USD		14,119		14,013,108
Verisure Holding AB, 3.50%, 05/15/23	EUR		1,382		1,600,468
Verisure Midholding AB, 5.75%, 12/01/23			2,867		3,256,580
Waste Pro USA, Inc., 5.50%, 02/15/26(b)	USD		1,544		1,486,100
					354,115,906
Communications Equipment — 1.0%
CommScope Finance LLC(b):
5.50%, 03/01/24			51,609		52,785,169
6.00%, 03/01/26			37,724		39,020,574
8.25%, 03/01/27			11,554		11,987,275
CommScope Technologies LLC, 5.00%, 03/15/27(b)			2,909		2,579,352

Security		Par (000)		Value
Communications Equipment (continued)
Nokia OYJ:
2.00%, 03/11/26	EUR		444	$	495,567
6.63%, 05/15/39	USD		24,383		26,028,852
Telefonaktiebolaget LM Ericsson, 1.88%, 03/01/24	EUR		900		1,033,442
ViaSat, Inc., 5.63%, 04/15/27(b)	USD		26,341		26,804,865
					160,735,096
Construction & Engineering — 0.1%
Brand Industrial Services, Inc., 8.50%, 07/15/25(b)			7,109		6,380,328
Heathrow Funding Ltd., 1.88%, 03/14/34	EUR		650		730,591
New Enterprise Stone & Lime Co., Inc.(b):
10.13%, 04/01/22	USD		11,516		11,659,950
6.25%, 03/15/26			3,630		3,530,574
					22,301,443
Construction Materials — 0.0%
Cemex SAB de CV, 3.13%, 03/19/26	EUR		1,450		1,624,504
Consumer Finance — 1.6%
Ally Financial, Inc.:
4.13%, 03/30/20	USD		1,900		1,912,521
4.13%, 02/13/22			577		582,049
5.13%, 09/30/24			2,794		2,937,192
5.75%, 11/20/25			1,200		1,278,132
8.00%, 11/01/31			115,603		143,492,224
Credit Acceptance Corp., 6.63%, 03/15/26(b)			7,972		8,104,335
Lincoln Finance Ltd., 6.88%, 04/15/21	EUR		900		1,028,898
Mulhacen Pte. Ltd., 6.50% (6.50% Cash or 7.25% PIK), 08/01/23(j)			4,136		4,729,246
Navient Corp.:
5.00%, 10/26/20	USD		4,891		4,958,251
6.63%, 07/26/21			9,208		9,622,360
6.50%, 06/15/22			1,229		1,280,849
5.50%, 01/25/23			16,292		16,312,365
7.25%, 09/25/23			6,192		6,540,300
5.88%, 10/25/24			3,235		3,129,863
6.75%, 06/25/25			2,087		2,069,365
6.75%, 06/15/26			3,959		3,790,742
5.63%, 08/01/33			9,044		6,918,660
Springleaf Finance Corp.:
5.63%, 03/15/23			3,727		3,778,246
6.13%, 03/15/24			22,706		23,216,431
6.88%, 03/15/25			15,530		16,015,313
7.13%, 03/15/26			6,926		7,051,499
					268,748,841
Containers & Packaging — 2.1%
Ardagh Packaging Finance plc:
4.13%, 05/15/23	EUR		479		550,751
4.63%, 05/15/23(b)	USD		57,502		57,861,388
6.75%, 05/15/24	EUR		2,247		2,668,641
7.25%, 05/15/24(b)	USD		83,485		87,947,273
6.00%, 02/15/25(b)			1,743		1,743,000
4.75%, 07/15/27(b)	GBP		4,000		4,929,773
4.75%, 07/15/27			2,815		3,469,328
BWAY Holding Co.:
4.75%, 04/15/24	EUR		2,116		2,413,116
5.50%, 04/15/24(b)	USD		70,314		69,807,739
Crown Americas LLC:
4.50%, 01/15/23			569		574,690
4.75%, 02/01/26			30,013		30,157,062
4.25%, 09/30/26			18,192		17,578,020
Crown European Holdings SA, 3.38%, 05/15/25	EUR		1,932		2,316,673

50 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Containers & Packaging (continued)
Graphic Packaging International LLC, 4.88%, 11/15/22	USD		223	$	227,460
Greif, Inc., 6.50%, 03/01/27(b)			4,253		4,348,692
Horizon Parent Holdings SARL, 8.25% (8.25% Cash or 9.00% PIK), 02/15/22(j)	EUR		1,838		2,112,393
Intertape Polymer Group, Inc., 7.00%, 10/15/26(b)	USD		5,872		6,018,800
OI European Group BV, 4.00%, 03/15/23(b)			3,554		3,487,362
Reynolds Group Issuer, Inc.(b):
5.13%, 07/15/23			7,065		7,179,806
7.00%, 07/15/24			24,633		25,375,069
Sealed Air Corp.:
4.88%, 12/01/22(b)			2,000		2,063,980
5.25%, 04/01/23(b)			534		554,025
4.50%, 09/15/23	EUR		1,026		1,286,102
5.13%, 12/01/24(b)	USD		2,364		2,449,009
6.88%, 07/15/33(b)			158		170,640
Silgan Holdings, Inc., 3.25%, 03/15/25	EUR		2,085		2,414,394
					339,705,186
Distributors — 0.3%
American Builders & Contractors Supply Co., Inc.(b):
5.75%, 12/15/23	USD		1,301		1,335,151
5.88%, 05/15/26			14,669		14,870,699
Core & Main LP, 6.13%, 08/15/25(b)			24,804		24,253,351
Parts Europe SA:
4.38%, 05/01/22	EUR		899		1,000,890
(EURIBOR 3 Month + 5.50%), 5.50%, 05/01/22(a)			1,247		1,402,319
					42,862,410
Diversified Consumer Services — 0.4%
frontdoor, Inc., 6.75%, 08/15/26(b)	USD		16,684		17,059,390
Graham Holdings Co., 5.75%, 06/01/26(b)			9,253		9,715,650
Laureate Education, Inc., 8.25%, 05/01/25(b)			5,508		5,976,180
Service Corp. International, 5.38%, 05/15/24			770		790,212
ServiceMaster Co. LLC (The), 5.13%, 11/15/24(b)			31,713		31,831,924
					65,373,356
Diversified Financial Services — 1.4%
Arrow Global Finance plc, 5.13%, 09/15/24(g)	GBP		2,200		2,736,447
Cabot Financial Luxembourg SA, 7.50%, 10/01/23			1,700		2,169,616
Garfunkelux Holdco 3 SA:
7.50%, 08/01/22	EUR		2,730		2,801,224
(EURIBOR 3 Month + 4.50%), 4.50%, 09/01/23(a)			1,050		997,923
HBOS Capital Funding LP, 6.85%(h)	USD		6,050		6,095,375
Jefferies Finance LLC, 6.88%, 04/15/22(b)			18,887		18,981,435
LHC3 plc, 4.12% (4.12% Cash or 9.00% PIK), 08/15/24(j)	EUR		2,576		2,925,138
Lincoln Financing SARL:
3.63%, 04/01/24			1,966		2,226,973
(EURIBOR 3 Month + 3.88%), 3.88%, 04/01/24(a)			2,838		3,207,403
Nexi Capital SpA:
(EURIBOR 3 Month + 3.63%), 3.63%, 05/01/23(a)			911		1,032,747
4.13%, 11/01/23			519		604,282
Refinitiv US Holdings, Inc.:
4.50%, 05/15/26(b)			20,132		22,723,086
4.50%, 05/15/26			3,109		3,509,143
6.25%, 05/15/26(b)	USD		24,511		24,848,026

Security		Par (000)		Value
Diversified Financial Services (continued)
6.88%, 11/15/26	EUR		1,665	$	1,830,360
8.25%, 11/15/26(b)	USD		33,880		33,244,750
Tempo Acquisition LLC, 6.75%, 06/01/25(b)			20,108		20,258,810
Travelport Corporate Finance plc, 6.00%, 03/15/26(b)			8,349		9,016,920
Vantiv LLC:
3.88%, 11/15/25(b)	GBP		1,746		2,366,860
3.88%, 11/15/25			1,500		2,033,385
Verscend Escrow Corp., 9.75%, 08/15/26(b)	USD		59,123		58,975,192
					222,585,095
Diversified Telecommunication Services — 4.9%
Altice France SA:
6.25%, 05/15/24(b)			3,794		3,822,455
7.38%, 05/01/26(b)			83,172		81,508,560
5.88%, 02/01/27	EUR		2,200		2,542,379
8.13%, 02/01/27(b)	USD		43,308		43,795,215
Arqiva Broadcast Finance plc, 6.75%, 09/30/23	GBP		702		971,236
CCO Holdings LLC(b):
4.00%, 03/01/23	USD		13,514		13,501,162
5.38%, 05/01/25			579		597,817
5.75%, 02/15/26			5,794		6,061,973
5.50%, 05/01/26			5,000		5,162,500
5.13%, 05/01/27			86,482		87,022,512
5.88%, 05/01/27			2,771		2,875,744
5.00%, 02/01/28			54,615		53,858,582
CenturyLink, Inc.:
Series S, 6.45%, 06/15/21			12,677		13,199,926
Series W, 6.75%, 12/01/23			6,279		6,553,706
Series Y, 7.50%, 04/01/24(g)			21,242		22,463,415
5.63%, 04/01/25			793		767,228
Series P, 7.60%, 09/15/39			2,274		1,995,435
Series U, 7.65%, 03/15/42			17,718		15,547,545
Cincinnati Bell, Inc.(b):
7.00%, 07/15/24			7,775		7,157,510
8.00%, 10/15/25			12,879		11,752,087
DKT Finance ApS, 9.38%, 06/17/23(b)			300		321,150
Embarq Corp., 8.00%, 06/01/36			20,503		19,964,796
Frontier Communications Corp.:
10.50%, 09/15/22			5,608		4,276,100
11.00%, 09/15/25			64,166		42,229,249
8.00%, 04/01/27(b)			59,887		61,833,327
Intelsat Jackson Holdings SA:
5.50%, 08/01/23			35,867		31,831,963
8.50%, 10/15/24(b)			38,546		37,485,985
9.75%, 07/15/25(b)			49,668		50,427,920
Level 3 Financing, Inc.:
5.63%, 02/01/23			4,578		4,629,502
5.38%, 05/01/25			3,452		3,494,460
5.25%, 03/15/26			29,978		29,903,055
Level 3 Parent LLC, 5.75%, 12/01/22			6,132		6,195,160
Qualitytech LP, 4.75%, 11/15/25(b)			7,521		7,276,568
Qwest Corp., 6.75%, 12/01/21			8,930		9,501,966
Telecom Italia Capital SA:
6.38%, 11/15/33			7,176		6,924,840
6.00%, 09/30/34			6,451		5,967,175
Telecom Italia Finance SA, 7.75%, 01/24/33	EUR		462		670,212
Telecom Italia SpA:
1.13%, 03/26/22(k)			3,700		4,016,356
5.88%, 05/19/23	GBP		1,900		2,639,571
4.00%, 04/11/24	EUR		3,164		3,735,026
5.30%, 05/30/24(b)	USD		11,519		11,576,595
Telesat Canada, 8.88%, 11/15/24(b)			6,555		7,063,013

SCHEDULES OF INVESTMENTS 51

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
Virgin Media Finance plc:
6.00%, 10/15/24(b)	USD		3,000	$	3,101,190
6.38%, 10/15/24	GBP		1,251		1,698,568
5.75%, 01/15/25(b)	USD		37,337		37,943,726
Virgin Media Secured Finance plc:
5.50%, 01/15/25	GBP		3,331		4,435,943
5.25%, 01/15/26(b)	USD		11,618		11,690,612
4.88%, 01/15/27	GBP		4,215		5,435,477
6.25%, 03/28/29			100		137,708
					797,564,200
Electric Utilities — 0.3%
ContourGlobal Power Holdings SA, 3.38%, 08/01/23	EUR		2,714		3,124,407
DPL, Inc., 7.25%, 10/15/21	USD		2,250		2,418,300
Naturgy Finance BV(a)(h):
(EUR Swap Annual 8 Year + 3.35%), 4.13%	EUR		3,100		3,681,126
(EUR Swap Annual 9 Year + 3.08%), 3.38%			2,800		3,169,281
NextEra Energy Operating Partners LP(b):
4.25%, 09/15/24	USD		6,747		6,696,397
4.50%, 09/15/27			5,542		5,403,450
Vistra Operations Co. LLC(b):
5.50%, 09/01/26			3,861		4,015,440
5.63%, 02/15/27			26,201		27,249,040
					55,757,441
Electrical Equipment — 0.3%
Energizer Gamma Acquisition BV, 4.63%, 07/15/26	EUR		962		1,107,330
Sensata Technologies BV, 5.00%, 10/01/25(b)	USD		14,705		15,072,625
Vertiv Group Corp., 9.25%, 10/15/24(b)			28,388		28,246,060
					44,426,015
Electronic Equipment, Instruments & Components — 0.2%
Belden, Inc., 4.13%, 10/15/26	EUR		2,420		2,852,538
CDW LLC, 5.50%, 12/01/24	USD		28,753		30,226,591
Itron, Inc., 5.00%, 01/15/26(b)			1,213		1,193,289
					34,272,418
Energy Equipment & Services — 2.3%
Apergy Corp., 6.38%, 05/01/26			6,333		6,412,162
Archrock Partners LP, 6.88%, 04/01/27(b)			7,289		7,432,593
CSI Compressco LP, 7.50%, 04/01/25(b)			13,405		12,801,775
Diamond Offshore Drilling, Inc.:
7.88%, 08/15/25			1,298		1,252,570
5.70%, 10/15/39			1,665		1,119,712
4.88%, 11/01/43			14,744		9,325,580
Ensco Jersey Finance Ltd., 3.00%, 01/31/24(k)			11,539		8,900,137
Ensco plc:
4.70%, 03/15/21			2,480		2,356,000
4.50%, 10/01/24			3,057		2,327,141
5.20%, 03/15/25			10,401		8,063,895
7.75%, 02/01/26			9,767		8,240,906
5.75%, 10/01/44			6,087		3,910,898
Nabors Industries, Inc.:
5.00%, 09/15/20			1,364		1,370,820
4.63%, 09/15/21			11,794		11,646,575
5.50%, 01/15/23			2,496		2,382,432
5.75%, 02/01/25			8,381		7,511,304
Noble Holding International Ltd.:
7.75%, 01/15/24			669		602,334
7.88%, 02/01/26(b)			39,757		36,874,618
5.25%, 03/15/42			4,600		2,760,000
Oceaneering International, Inc., 4.65%, 11/15/24			2,381		2,196,472

Security		Par (000)		Value
Energy Equipment & Services (continued)
Pacific Drilling First Lien Escrow Issuer Ltd., 8.38%, 10/01/23(b)	USD		41,233	$	41,858,917
Pioneer Energy Services Corp., 6.13%, 03/15/22			9,402		5,829,240
Precision Drilling Corp.:
5.25%, 11/15/24			701		655,435
7.13%, 01/15/26(b)			9,800		9,717,313
Rowan Cos., Inc., 4.88%, 06/01/22			18,340		17,079,125
SESI LLC:
7.13%, 12/15/21			5,738		5,142,683
7.75%, 09/15/24			5,218		4,317,895
Transocean Pontus Ltd., 6.13%, 08/01/25(b)			11,775		11,921,884
Transocean Poseidon Ltd., 6.88%, 02/01/27(b)			19,547		20,328,880
Transocean, Inc.:
6.50%, 11/15/20			1,241		1,281,332
8.47%, 12/15/21			549		577,823
5.80%, 10/15/22			300		294,000
9.00%, 07/15/23(b)			33,401		35,613,816
7.25%, 11/01/25(b)			16,859		16,690,410
7.50%, 01/15/26(b)			7,563		7,468,463
USA Compression Partners LP:
6.88%, 04/01/26			21,866		22,439,983
6.88%, 09/01/27(b)			14,972		15,215,295
Vantage Drilling International, 9.25%, 11/15/23(b)			6,656		6,839,040
Weatherford International Ltd.:
5.13%, 09/15/20			10,175		8,954,000
6.50%, 08/01/36			6,664		3,765,160
5.95%, 04/15/42			11,569		6,475,169
					379,953,787
Entertainment — 0.6%
Ascend Learning LLC:
6.88%, 08/01/25(b)			24,141		23,981,104
Live Nation Entertainment, Inc.(b):
5.38%, 06/15/22			228		230,850
4.88%, 11/01/24			1,890		1,901,813
Netflix, Inc.:
5.50%, 02/15/22			5,937		6,226,429
4.38%, 11/15/26			7,187		7,052,244
4.88%, 04/15/28			3,661		3,624,390
5.88%, 11/15/28(b)			40,145		42,403,156
4.63%, 05/15/29	EUR		3,296		3,945,198
WMG Acquisition Corp.:
4.13%, 11/01/24			2,808		3,300,633
5.50%, 04/15/26(b)	USD		6,856		7,035,970
					99,701,787
Equity Real Estate Investment Trusts (REITs) — 2.3%
CyrusOne LP:
5.00%, 03/15/24			2,908		2,969,795
5.38%, 03/15/27			4,357		4,508,188
Equinix, Inc.:
5.38%, 04/01/23			4,606		4,686,605
2.88%, 03/15/24	EUR		2,251		2,606,300
2.88%, 10/01/25			3,339		3,851,709
5.88%, 01/15/26	USD		32,627		34,370,913
2.88%, 02/01/26	EUR		414		478,311
5.38%, 05/15/27	USD		9,828		10,322,349
ESH Hospitality, Inc., 5.25%, 05/01/25(b)			10,681		10,609,758
GEO Group, Inc. (The), 5.88%, 10/15/24			3,877		3,392,375
GLP Capital LP:
5.38%, 11/01/23			1,410		1,484,293
5.25%, 06/01/25			9,496		9,947,060
5.38%, 04/15/26			8,667		9,056,148
5.75%, 06/01/28			2,450		2,630,565

52 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security			Par (000)		Value
Equity Real Estate Investment Trusts (REITs) (continued)
Iron Mountain UK plc, 3.88%, 11/15/25	GBP			1,832	$	2,268,750
Iron Mountain, Inc.:
3.00%, 01/15/25	EUR			823		927,790
4.88%, 09/15/27(b)	USD			17,392		16,696,320
iStar, Inc.:
4.63%, 09/15/20				2,079		2,102,389
6.00%, 04/01/22				852		855,195
MGM Growth Properties Operating Partnership LP:
5.63%, 05/01/24				51,049		53,090,960
4.50%, 09/01/26		��		18,336		17,831,760
4.50%, 01/15/28				20,559		19,325,460
MPT Operating Partnership LP:
5.50%, 05/01/24				7,145		7,323,625
5.25%, 08/01/26				3,406		3,503,922
5.00%, 10/15/27				49,941		50,814,968
SBA Communications Corp.:
4.88%, 07/15/22				1,888		1,913,960
4.00%, 10/01/22				25,023		25,113,083
4.88%, 09/01/24				65,350		66,023,105
VICI Properties 1 LLC, 8.00%, 10/15/23				5,898		6,457,794
						375,163,450
Food & Staples Retailing — 0.1%
Albertsons Cos. LLC:
5.75%, 03/15/25				7,399		7,019,801
7.50%, 03/15/26(b)				5,039		5,183,871
Casino Guichard Perrachon SA:
4.56%, 01/25/23	EUR			1,300		1,460,471
4.50%, 03/07/24				500		556,054
Distribuidora Internacional de Alimentacion SA, 1.00%, 04/28/21				2,900		2,651,279
Hipercor SA, 3.88%, 01/19/22				1,900		2,242,836
Tesco plc, 5.00%, 03/24/23	GBP			1,000		1,430,365
						20,544,677
Food Products — 0.9%
B&G Foods, Inc., 5.25%, 04/01/25	USD			143		137,101
Boparan Finance plc, 5.50%, 07/15/21	GBP			1,059		942,439
Chobani LLC, 7.50%, 04/15/25(b)	USD			6,372		5,710,905
JBS Investments GmbH, 6.25%, 02/05/23(b)				300		303,795
JBS Investments II GmbH, 7.00%, 01/15/26(b)				800		822,000
JBS USA LUX SA(b):
5.88%, 07/15/24				24,874		25,558,035
5.75%, 06/15/25				40,695		41,746,559
6.75%, 02/15/28				18,368		19,004,727
Nomad Foods Bondco plc, 3.25%, 05/15/24	EUR			1,400		1,600,345
Post Holdings, Inc.(b):
5.50%, 03/01/25	USD			12,366		12,505,117
5.00%, 08/15/26				2,925		2,844,562
5.75%, 03/01/27				11,516		11,559,185
5.63%, 01/15/28				3,517		3,490,623
Premier Foods Finance plc, 6.25%, 10/15/23	GBP			1,000		1,331,755
Simmons Foods, Inc., 7.75%, 01/15/24(b)	USD			13,467		14,342,355
						141,899,503
Gas Utilities — 0.1%
Superior Plus LP, 7.00%, 07/15/26(b)				16,297		16,561,826
Health Care Equipment & Supplies — 1.8%
Avantor, Inc.:
4.75%, 10/01/24	EUR			1,237		1,439,430
6.00%, 10/01/24(b)	USD			87,758		91,048,925
9.00%, 10/01/25(b)				45,552		49,366,980
Hologic, Inc.(b):
4.38%, 10/15/25				14,083		14,009,768
4.63%, 02/01/28				5,213		5,121,773

Security			Par (000)		Value
Health Care Equipment & Supplies (continued)
Immucor, Inc., 11.13%, 02/15/22(b)		USD		4,750	$	4,821,250
Mallinckrodt International Finance SA(b):
4.88%, 04/15/20				339		337,305
5.75%, 08/01/22				5,364		4,988,520
Ortho-Clinical Diagnostics, Inc., 6.63%, 05/15/22(b)				80,576		76,466,624
Sotera Health Holdings LLC, 6.50%, 05/15/23(b)				23,262		23,436,465
Teleflex, Inc.:
5.25%, 06/15/24				414		423,576
4.88%, 06/01/26				9,516		9,694,425
4.63%, 11/15/27				5,568		5,522,788
						286,677,829
Health Care Providers & Services — 5.3%
Acadia Healthcare Co., Inc.:
5.13%, 07/01/22				6,956		6,973,390
5.63%, 02/15/23				6,979		7,022,619
6.50%, 03/01/24				12,107		12,409,675
AHP Health Partners, Inc., 9.75%, 07/15/26(b)				7,268		7,831,270
Centene Corp.:
4.75%, 01/15/25				4,306		4,392,120
5.38%, 06/01/26(b)				105,164		109,764,925
Community Health Systems, Inc.(b):
8.63%, 01/15/24				29,244		29,280,555
8.00%, 03/15/26				19,024		18,263,040
DaVita, Inc., 5.00%, 05/01/25				274		262,561
Encompass Health Corp., 5.75%, 11/01/24				467		472,838
HCA, Inc.:
5.88%, 05/01/23				687		732,514
5.38%, 02/01/25				27,612		29,268,720
5.88%, 02/15/26				1,364		1,473,120
5.38%, 09/01/26				21,734		22,902,202
5.63%, 09/01/28				52,772		55,806,390
5.88%, 02/01/29				46,002		49,564,855
5.50%, 06/15/47	��			38,555		40,989,726
inVentiv Group Holdings, Inc., 7.50%, 10/01/24(b)				10,746		11,310,165
MEDNAX, Inc.(b):
5.25%, 12/01/23				8,268		8,371,350
6.25%, 01/15/27				29,117		29,408,170
Molina Healthcare, Inc.:
5.38%, 11/15/22				9,733		10,103,925
4.88%, 06/15/25(b)				9,446		9,339,732
MPH Acquisition Holdings LLC, 7.13%, 06/01/24(b)				24,958		24,895,605
NVA Holdings, Inc., 6.88%, 04/01/26(b)				9,033		8,931,379
Polaris Intermediate Corp., 8.50% (8.50% Cash or 9.25% PIK), 12/01/22(b)(j)				49,260		48,594,990
RegionalCare Hospital Partners Holdings, Inc., 8.25%, 05/01/23(b)				38,623		41,085,216
Surgery Center Holdings, Inc.(b):
8.88%, 04/15/21				6,670		6,985,491
6.75%, 07/01/25				24,434		22,112,770
10.00%, 04/15/27				9,834		9,981,510
Team Health Holdings, Inc., 6.38%, 02/01/25(b)				19,679		16,013,786
Tenet Healthcare Corp.:
6.00%, 10/01/20				1,195		1,238,319
8.13%, 04/01/22				53,708		57,781,752
4.63%, 07/15/24				39,925		39,986,884
6.25%, 02/01/27(b)				57,111		59,284,073
Vizient, Inc., 10.38%, 03/01/24(b)				17,498		19,016,826
WellCare Health Plans, Inc.:
5.25%, 04/01/25				15,431		15,971,085
5.38%, 08/15/26(b)				22,987		24,050,149
						861,873,697

SCHEDULES OF INVESTMENTS 53

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Health Care Technology — 0.2%
IQVIA, Inc.:
3.50%, 10/15/24	EUR		600	$	691,842
3.25%, 03/15/25(b)			1,962		2,247,618
3.25%, 03/15/25			9,875		11,312,551
5.00%, 10/15/26(b)	USD		16,965		17,357,400
					31,609,411
Hotels, Restaurants & Leisure — 4.1%
1011778 BC ULC, 4.63%, 01/15/22(b)			1,094		1,099,153
Aramark International Finance SARL, 3.13%, 04/01/25	EUR		1,140		1,333,259
Boyd Gaming Corp., 6.00%, 08/15/26	USD		5,263		5,394,575
Boyne USA, Inc., 7.25%, 05/01/25(b)			6,718		7,188,260
Caesars Resort Collection LLC, 5.25%, 10/15/25(b)			8,134		7,834,018
Churchill Downs, Inc.(b):
5.50%, 04/01/27			28,278		28,673,892
4.75%, 01/15/28			15,244		14,500,855
Cirsa Finance International SARL, 6.25%, 12/20/23	EUR		1,257		1,487,772
CPUK Finance Ltd.:
4.25%, 08/28/22	GBP		1,511		1,960,931
4.88%, 08/28/25			350		448,075
EI Group plc, 6.38%, 02/15/22			388		516,809
Eldorado Resorts, Inc., 6.00%, 09/15/26	USD		4,995		5,069,925
Golden Nugget, Inc., 6.75%, 10/15/24(b)			42,225		42,436,125
Hilton Domestic Operating Co., Inc.:
4.25%, 09/01/24			9,432		9,414,268
5.13%, 05/01/26(b)			43,437		44,166,307
Hilton Worldwide Finance LLC:
4.63%, 04/01/25			966		975,660
4.88%, 04/01/27			10,827		10,948,804
IRB Holding Corp., 6.75%, 02/15/26(b)			2,833		2,663,020
KFC Holding Co.(b):
5.00%, 06/01/24			2,000		2,040,000
5.25%, 06/01/26			12,549		12,666,647
4.75%, 06/01/27			3,942		3,873,015
Ladbrokes Group Finance plc, 5.13%, 09/08/23	GBP		2,773		3,732,685
Marriott Ownership Resorts, Inc., 6.50%, 09/15/26(b)	USD		1,992		2,087,018
Melco Resorts Finance Ltd., 4.88%, 06/06/25(b)			19,637		19,317,899
MGM Resorts International:
5.25%, 03/31/20			2,626		2,675,237
6.63%, 12/15/21			34,091		36,434,756
7.75%, 03/15/22			25,414		28,018,935
5.50%, 04/15/27			8,105		8,191,116
New Red Finance, Inc.(b):
4.25%, 05/15/24			29,791		29,493,090
5.00%, 10/15/25			97,641		96,449,780
Pinnacle Bidco plc, 6.38%, 02/15/25	GBP		2,345		3,137,809
Sabre GLBL, Inc.(b):
5.38%, 04/15/23	USD		9,046		9,271,426
5.25%, 11/15/23			8,568		8,739,360
Scientific Games International, Inc.:
10.00%, 12/01/22			6,917		7,268,729
5.00%, 10/15/25(b)			36,075		35,353,500
3.38%, 02/15/26	EUR		8,200		8,871,809
8.25%, 03/15/26(b)	USD		41,241		42,092,627
Sisal Group SpA, 7.00%, 07/31/23	EUR		1,000		1,130,837
Six Flags Entertainment Corp.(b):
4.88%, 07/31/24	USD		18,428		18,209,075
5.50%, 04/15/27			23,848		23,580,903
Station Casinos LLC, 5.00%, 10/01/25(b)			3,365		3,297,700

Security		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
Stonegate Pub Co. Financing plc(a):
(LIBOR GBP 3 Month + 4.38%), 5.22%, 03/15/22	GBP		951	$	1,234,604
(LIBOR GBP 3 Month + 6.25%), 7.09%, 03/15/22			1,029		1,346,920
Viking Cruises Ltd.(b):
6.25%, 05/15/25	USD		15,108		15,334,620
5.88%, 09/15/27			46,320		45,069,360
Wyndham Destinations, Inc.:
5.40%, 04/01/24			288		292,320
5.75%, 04/01/27			4,705		4,666,890
Wyndham Hotels & Resorts, Inc., 5.38%, 04/15/26(b)			5,049		5,124,735
Wynn Macau Ltd.(b):
4.88%, 10/01/24			5,366		5,218,339
5.50%, 10/01/27			6,837		6,592,406
Yum! Brands, Inc., 5.35%, 11/01/43			718		621,070
					677,546,925
Household Durables — 0.6%
Brookfield Residential Properties, Inc., 6.13%, 07/01/22(b)			1,000		1,005,000
Lennar Corp.:
8.38%, 01/15/21			8,186		8,840,880
6.25%, 12/15/21			3,054		3,214,335
4.88%, 12/15/23			3,645		3,754,350
5.25%, 06/01/26			2,830		2,911,362
4.75%, 11/29/27			13,935		13,941,515
Mattamy Group Corp.(b):
6.88%, 12/15/23			3,699		3,772,980
6.50%, 10/01/25			6,514		6,393,817
MDC Holdings, Inc., 6.00%, 01/15/43			5,758		4,923,090
Meritage Homes Corp., 5.13%, 06/06/27			4,646		4,505,226
PulteGroup, Inc.:
6.38%, 05/15/33			14,254		14,200,547
6.00%, 02/15/35			8,274		7,932,698
Tempur Sealy International, Inc., 5.50%, 06/15/26			1,825		1,826,131
TRI Pointe Group, Inc.:
4.88%, 07/01/21			882		883,103
5.88%, 06/15/24			1,663		1,671,315
5.25%, 06/01/27			4,706		4,329,520
Williams Scotsman International, Inc.(b):
7.88%, 12/15/22			6,278		6,466,340
6.88%, 08/15/23			6,012		6,012,000
					96,584,209
Household Products — 0.2%
Diamond BC BV, 5.63%, 08/15/25	EUR		935		979,613
Energizer Holdings, Inc.(b):
6.38%, 07/15/26	USD		5,871		6,017,775
7.75%, 01/15/27			17,516		18,654,540
Spectrum Brands, Inc., 6.63%, 11/15/22			152		155,496
					25,807,424
Independent Power and Renewable Electricity Producers — 1.7%
AES Corp.:
4.50%, 03/15/23			570		575,700
4.88%, 05/15/23			4,572		4,634,865
5.50%, 04/15/25			10,247		10,631,262
6.00%, 05/15/26			7,278		7,714,534
5.13%, 09/01/27			14,445		15,025,545
Calpine Corp.:
6.00%, 01/15/22(b)			2,726		2,756,667
5.38%, 01/15/23			47,974		48,033,968

54 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Independent Power and Renewable Electricity Producers (continued)
5.88%, 01/15/24(b)	USD		2,509	$	2,571,725
5.50%, 02/01/24			776		771,150
5.75%, 01/15/25			17,786		17,697,070
5.25%, 06/01/26(b)			46,011		45,780,945
Clearway Energy Operating LLC:
5.38%, 08/15/24			16,513		16,471,717
5.75%, 10/15/25(b)			13,601		13,652,004
NRG Energy, Inc.:
6.63%, 01/15/27			57,176		61,535,670
5.75%, 01/15/28			16,414		17,398,840
Pattern Energy Group, Inc., 5.88%, 02/01/24(b)			6,617		6,732,798
Talen Energy Supply LLC:
6.50%, 06/01/25			2,582		2,272,160
10.50%, 01/15/26(b)			2,582		2,691,735
Vistra Energy Corp., 7.63%, 11/01/24			3,879		4,102,120
					281,050,475
Insurance — 0.9%
Acrisure LLC, 8.13%, 02/15/24(b)			5,432		5,628,421
Aegon NV, (EUR Swap Annual 5 Year + 5.21%), 6.00%(a)(h)	EUR		1,025		1,150,633
Alliant Holdings Intermediate LLC, 8.25%, 08/01/23(b)	USD		67,403		69,088,075
AmWINS Group, Inc., 7.75%, 07/01/26(b)			4,987		4,974,533
Ardonagh Midco 3 plc:
8.38%, 07/15/23	GBP		913		1,028,604
8.63%, 07/15/23(b)	USD		10,689		9,139,095
Assicurazioni Generali SpA(a):
(EURIBOR 3 Month + 7.11%), 7.75%, 12/12/42	EUR		1,100		1,466,225
(EURIBOR 3 Month + 5.35%), 5.50%, 10/27/47			877		1,075,913
Caisse Nationale de Reassurance Mutuelle Agricole Groupama:
(EURIBOR 3 Month + 5.77%), 6.37%(a)(h)			800		1,006,667
6.00%, 01/23/27			500		669,321
HUB International Ltd., 7.00%, 05/01/26(b)	USD		45,359		44,905,410
NN Group NV, (EURIBOR 3 Month + 3.90%), 4.38%(a)(h)	EUR		1,154		1,365,707
USI, Inc., 6.88%, 05/01/25(b)	USD		5,416		5,260,290
					146,758,894
Interactive Media & Services — 0.1%(b)
Match Group, Inc., 5.63%, 02/15/29			8,733		8,842,162
Rackspace Hosting, Inc., 8.63%, 11/15/24			9,509		8,471,378
					17,313,540
Internet & Direct Marketing Retail — 0.1%
Shop Direct Funding plc, 7.75%, 11/15/22	GBP		1,499		1,757,161
Uber Technologies, Inc.(b):
7.50%, 11/01/23	USD		14,258		14,863,965
8.00%, 11/01/26			3,000		3,191,250
					19,812,376
IT Services — 1.5%
Alliance Data Systems Corp.(b):
5.88%, 11/01/21			5,383		5,504,117
5.38%, 08/01/22			20,463		20,693,209
Banff Merger Sub, Inc.:
8.38%, 09/01/26	EUR		1,747		1,935,189
9.75%, 09/01/26(b)	USD		78,438		76,084,860
Booz Allen Hamilton, Inc., 5.13%, 05/01/25(b)			17,584		17,540,040
Gartner, Inc., 5.13%, 04/01/25(b)			15,188		15,350,512
InterXion Holding NV, 4.75%, 06/15/25	EUR		3,110		3,697,961

Security		Par (000)		Value
IT Services (continued)
United Group BV:
4.38%, 07/01/22	EUR		2,448	$	2,817,793
4.88%, 07/01/24			2,156		2,470,877
WEX, Inc., 4.75%, 02/01/23(b)	USD		9,596		9,572,010
Zayo Group LLC:
6.00%, 04/01/23			12,516		12,672,450
6.38%, 05/15/25			18,418		18,510,090
5.75%, 01/15/27(b)			64,069		63,928,048
					250,777,156
Leisure Products — 0.2%
Mattel, Inc., 6.75%, 12/31/25(b)			34,618		34,055,458
Life Sciences Tools & Services — 0.1%
Charles River Laboratories International, Inc., 5.50%, 04/01/26(b)			19,957		20,705,387
Machinery — 1.6%
Colfax Corp.:
6.00%, 02/15/24(b)			25,932		27,001,695
3.25%, 05/15/25	EUR		900		1,031,180
6.38%, 02/15/26(b)	USD		13,925		14,821,352
EnPro Industries, Inc., 5.75%, 10/15/26(b)			2,037		2,052,277
Grinding Media, Inc., 7.38%, 12/15/23(b)			11,476		11,016,960
Manitowoc Co., Inc. (The), 9.00%, 04/01/26(b)			6,189		6,266,362
Mueller Water Products, Inc., 5.50%, 06/15/26(b)			12,535		12,723,025
Navistar International Corp., 6.63%, 11/01/25(b)			21,286		21,631,898
Novelis Corp.(b):
6.25%, 08/15/24			44,625		45,629,062
5.88%, 09/30/26			25,475		25,379,469
Platin 1426 GmbH, 5.38%, 06/15/23	EUR		2,823		3,080,281
RBS Global, Inc., 4.88%, 12/15/25(b)	USD		25,084		24,770,450
SPX FLOW, Inc.(b):
5.63%, 08/15/24			7,742		7,780,710
5.88%, 08/15/26			2,484		2,496,420
Stevens Holding Co., Inc., 6.13%, 10/01/26(b)			6,781		6,984,430
Terex Corp., 5.63%, 02/01/25(b)			10,759		10,705,205
Titan Acquisition Ltd., 7.75%, 04/15/26(b)			26,533		22,884,713
Wabash National Corp., 5.50%, 10/01/25(b)			13,183		12,293,148
					258,548,637
Marine — 0.0%
CMA CGM SA:
6.50%, 07/15/22	EUR		1,550		1,652,646
5.25%, 01/15/25			1,000		935,441
					2,588,087
Media — 6.7%
Adelphia Commercial Bonds, Escrow, Series B, 10.50%, 07/15/04(d)(e)(i)	USD		800		—
Altice Financing SA(b):
6.63%, 02/15/23			46,895		47,950,137
7.50%, 05/15/26			24,203		23,888,361
Altice Finco SA, 7.63%, 02/15/25(b)			712		647,920
Altice Luxembourg SA:
7.75%, 05/15/22(b)			62,724		62,724,000
6.25%, 02/15/25	EUR		600		619,341
AMC Networks, Inc.:
4.75%, 12/15/22	USD		1,101		1,109,258
5.00%, 04/01/24			2,528		2,540,387
4.75%, 08/01/25			16,332		16,209,510
Century Communications Corp., Escrow, 0.00%, 03/15/13(d)(e)(i)			625		—
Clear Channel International BV, 8.75%, 12/15/20(b)			40,343		41,402,004

SCHEDULES OF INVESTMENTS 55

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Media (continued)
Clear Channel Worldwide Holdings, Inc.:
Series A, 6.50%, 11/15/22	USD		132,757	$	135,659,066
9.25%, 02/15/24(b)			102,968		109,146,080
CSC Holdings LLC:
5.13%, 12/15/21(b)			39,749		39,798,686
5.38%, 07/15/23(b)			29,587		30,141,756
5.25%, 06/01/24			33,196		33,693,940
7.75%, 07/15/25(b)			38,875		41,693,438
6.63%, 10/15/25(b)			866		917,960
10.88%, 10/15/25(b)			77,009		88,906,891
5.50%, 05/15/26(b)			32,604		33,510,391
5.38%, 02/01/28(b)			14,342		14,377,855
6.50%, 02/01/29(b)			39,709		42,290,085
DISH DBS Corp.:
6.75%, 06/01/21			20,670		21,310,770
5.88%, 07/15/22			49,522		47,927,392
5.00%, 03/15/23			27,767		24,990,300
5.88%, 11/15/24			898		754,320
Gray Television, Inc.(b):
5.13%, 10/15/24			1,771		1,778,173
7.00%, 05/15/27			15,211		16,161,687
Lamar Media Corp., 5.75%, 02/01/26(b)			5,746		6,004,570
MDC Partners, Inc., 6.50%, 05/01/24(b)			17,134		14,178,385
Mediacom Broadband LLC, 5.50%, 04/15/21			60		60,048
Meredith Corp., 6.88%, 02/01/26			7,510		7,885,500
Midcontinent Communications, 6.88%, 08/15/23(b)			14,351		14,929,166
Outfront Media Capital LLC, 5.88%, 03/15/25			6,526		6,689,150
Quebecor Media, Inc., 5.75%, 01/15/23			1,537		1,602,322
Radiate Holdco LLC(b):
6.88%, 02/15/23			3,219		3,186,810
6.63%, 02/15/25			6,033		5,821,845
SES SA(a)(h):
(EUR Swap Annual 5 Year + 4.66%), 4.62%	EUR		500		586,036
(EUR Swap Annual 5 Year + 5.40%), 5.63%			1,400		1,675,984
Sirius XM Radio, Inc.(b):
5.38%, 04/15/25	USD		1,248		1,280,760
5.38%, 07/15/26			278		283,991
5.00%, 08/01/27			35,007		35,028,004
TDF Infrastructure SAS, 2.50%, 04/07/26	EUR		900		1,030,170
TEGNA, Inc., 5.50%, 09/15/24(b)	USD		2,483		2,507,830
Tele Columbus AG, 3.88%, 05/02/25	EUR		700		701,187
Telenet Finance Luxembourg Notes SARL, 5.50%, 03/01/28(b)	USD		23,000		22,540,000
Telenet Finance VI Luxembourg SCA, 4.88%, 07/15/27	EUR		2,629		3,165,960
Tribune Media Co., 5.88%, 07/15/22	USD		2,550		2,602,594
Unitymedia GmbH, 3.75%, 01/15/27	EUR		2,360		2,779,262
Unitymedia Hessen GmbH & Co. KG:
3.50%, 01/15/27			394		464,629
6.25%, 01/15/29			2,080		2,585,106
Univision Communications, Inc.(b):
5.13%, 05/15/23	USD		8,754		8,288,944
5.13%, 02/15/25			6,595		6,141,594
UPC Holding BV:
5.50%, 01/15/28(b)			2,760		2,753,100
3.88%, 06/15/29	EUR		1,200		1,368,109
UPCB Finance IV Ltd., 5.38%, 01/15/25(b)	USD		6,409		6,505,135
UPCB Finance VII Ltd., 3.63%, 06/15/29	EUR		2,054		2,391,514
Videotron Ltd., 5.13%, 04/15/27(b)	USD		4,594		4,685,880
Virgin Media Secured Finance plc, 5.25%, 01/15/21			1,200		1,233,000

Security		Par (000)		Value
Media (continued)
Ziggo Bond Co. BV:
7.13%, 05/15/24	EUR		691	$	808,460
5.88%, 01/15/25(b)	USD		24,417		24,111,787
Ziggo BV:
4.25%, 01/15/27	EUR		4,311		4,968,850
5.50%, 01/15/27(b)	USD		14,992		14,804,600
					1,095,799,990
Metals & Mining — 2.2%
Alcoa Nederland Holding BV, 6.13%, 05/15/28(b)			3,793		3,906,790
Big River Steel LLC, 7.25%, 09/01/25(b)			14,981		15,659,639
Cleveland-Cliffs, Inc., 4.88%, 01/15/24(b)			7,734		7,637,325
Constellium NV(b):
5.75%, 05/15/24			37,795		37,700,513
6.63%, 03/01/25			17,252		17,597,040
5.88%, 02/15/26			20,421		20,050,869
Freeport-McMoRan, Inc.:
3.55%, 03/01/22			28,130		27,813,538
3.88%, 03/15/23			46,220		45,554,894
4.55%, 11/14/24			27,305		26,895,425
5.40%, 11/14/34			5,060		4,604,600
5.45%, 03/15/43			88,789		77,691,263
Joseph T Ryerson & Son, Inc., 11.00%, 05/15/22(b)			6,058		6,391,190
Kaiser Aluminum Corp., 5.88%, 05/15/24			8,876		9,120,090
Steel Dynamics, Inc.:
5.25%, 04/15/23			2,444		2,483,715
5.50%, 10/01/24			3,949		4,077,342
4.13%, 09/15/25			14,505		14,178,638
5.00%, 12/15/26			8,971		9,161,634
SunCoke Energy Partners LP, 7.50%, 06/15/25(b)			4,554		4,610,925
Teck Resources Ltd., 4.50%, 01/15/21			498		505,221
thyssenkrupp AG:
1.38%, 03/03/22	EUR		899		1,001,309
2.88%, 02/22/24			4,272		4,820,332
2.50%, 02/25/25			830		935,138
United States Steel Corp.:
6.88%, 08/15/25	USD		5,405		5,256,362
6.25%, 03/15/26			7,955		7,418,038
					355,071,830
Mortgage Real Estate Investment Trusts (REITs) — 0.0%
Starwood Property Trust, Inc., 5.00%, 12/15/21			5,629		5,776,761
Multiline Retail — 0.0%
B&M European Value Retail SA, 4.13%, 02/01/22	GBP		1,770		2,329,462
Multi-Utilities — 0.0%
RWE AG, (EUR Swap Annual 5 Year + 2.64%), 2.75%, 04/21/75(a)	EUR		1,818		2,079,720
Oil, Gas & Consumable Fuels — 9.5%
Antero Midstream Partners LP:
5.38%, 09/15/24	USD		4,471		4,505,874
5.75%, 03/01/27(b)			1,937		1,966,055
Antero Resources Corp.:
5.38%, 11/01/21			461		462,729
5.13%, 12/01/22			1,969		1,979,436
5.63%, 06/01/23			2,000		2,027,500
5.00%, 03/01/25(g)			24,427		23,999,527
Ascent Resources Utica Holdings LLC(b):
10.00%, 04/01/22			14,869		16,286,016
7.00%, 11/01/26			6,456		6,205,830

56 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Berry Petroleum Co. LLC, 7.00%, 02/15/26(b)	USD		19,610	$	19,413,900
Brazos Valley Longhorn LLC, 6.88%, 02/01/25			8,595		8,637,975
Bruin E&P Partners LLC, 8.88%, 08/01/23(b)			20,570		19,695,775
California Resources Corp., 8.00%, 12/15/22(b)(g)			39,063		30,676,174
Callon Petroleum Co.:
6.13%, 10/01/24			7,765		7,803,825
6.38%, 07/01/26			14,688		14,724,720
Calumet Specialty Products Partners LP, 6.50%, 04/15/21			7,233		7,088,340
Carrizo Oil & Gas, Inc.:
6.25%, 04/15/23			11,822		11,629,892
8.25%, 07/15/25			14,100		14,523,000
Centennial Resource Production LLC, 6.88%, 04/01/27(b)			8,226		8,306,615
Chaparral Energy, Inc., 8.75%, 07/15/23(b)			8,872		6,077,320
Cheniere Corpus Christi Holdings LLC:
7.00%, 06/30/24			27,573		31,124,402
5.88%, 03/31/25			26,699		29,035,163
5.13%, 06/30/27			49,200		51,598,500
Cheniere Energy Partners LP, 5.63%, 10/01/26(b)			297		304,425
Chesapeake Energy Corp.:
6.63%, 08/15/20			12,120		12,438,150
6.13%, 02/15/21			7,988		8,227,640
4.88%, 04/15/22			7,086		6,979,710
5.75%, 03/15/23			8,160		7,976,400
7.00%, 10/01/24(g)			19,745		19,695,637
8.00%, 01/15/25(g)			8,470		8,639,400
8.00%, 06/15/27(g)			38,100		37,528,500
CNX Resources Corp., 5.88%, 04/15/22			63,529		63,370,177
Comstock Resources, Inc., 9.75%, 08/15/26(b)			8,592		7,904,640
CONSOL Energy, Inc., 11.00%, 11/15/25(b)			29,495		33,476,825
Covey Park Energy LLC, 7.50%, 05/15/25(b)			8,126		7,516,550
Crestwood Midstream Partners LP, 6.25%, 04/01/23			6,875		7,046,875
CrownRock LP, 5.63%, 10/15/25(b)			46,521		44,660,160
DCP Midstream Operating LP:
5.38%, 07/15/25			17,396		18,135,330
6.45%, 11/03/36(b)			14,865		15,236,625
6.75%, 09/15/37(b)			15,771		16,244,130
Denbury Resources, Inc., 9.25%, 03/31/22(b)			14,290		13,789,850
Diamondback Energy, Inc.:
4.75%, 11/01/24(b)			21,216		21,689,117
5.38%, 05/31/25			6,381		6,660,169
Encavis Finance BV, (EUR Swap Annual 5 Year + 1.10%), 5.25%(a)(h)(k)	EUR		900		1,017,567
Endeavor Energy Resources LP(b):
5.50%, 01/30/26	USD		23,494		24,081,350
5.75%, 01/30/28			24,496		25,659,560
EnLink Midstream Partners LP:
4.40%, 04/01/24			14,232		14,089,680
4.15%, 06/01/25			522		502,425
4.85%, 07/15/26			2,839		2,818,275
5.60%, 04/01/44			14,012		12,540,740
5.05%, 04/01/45			16,492		14,224,350
5.45%, 06/01/47			11,236		10,000,040
Extraction Oil & Gas, Inc.(b):
7.38%, 05/15/24			16,013		13,370,855
5.63%, 02/01/26			22,199		17,037,732
Genesis Energy LP:
6.00%, 05/15/23			2,236		2,252,770
5.63%, 06/15/24			3,956		3,797,760
6.50%, 10/01/25			715		695,337
6.25%, 05/15/26			7,680		7,257,600

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Great Western Petroleum LLC, 9.00%, 09/30/21(b)	USD		23,732	$	17,917,660
Gulfport Energy Corp.:
6.63%, 05/01/23			2,996		2,906,120
6.00%, 10/15/24			5,132		4,658,008
Halcon Resources Corp., 6.75%, 02/15/25			15,851		9,510,600
Hess Infrastructure Partners LP, 5.63%, 02/15/26(b)			11,073		11,266,777
Indigo Natural Resources LLC, 6.88%, 02/15/26(b)			9,274		8,207,490
Magnolia Oil & Gas Operating LLC, 6.00%, 08/01/26(b)			1,974		1,993,740
Matador Resources Co., 5.88%, 09/15/26			25,055		24,992,363
MEG Energy Corp., 6.50%, 01/15/25(b)			34,632		34,118,754
Murphy Oil Corp.:
5.75%, 08/15/25			10,460		10,781,983
7.05%, 05/01/29			815		895,869
5.87%, 12/01/42			9,720		8,674,530
Neptune Energy Bondco plc, 6.63%, 05/15/25(b)			1,465		1,435,700
NGPL PipeCo LLC(b):
4.88%, 08/15/27			29,308		29,601,080
7.77%, 12/15/37			20,310		24,372,000
Northern Oil and Gas, Inc., 8.50% (8.50% Cash or 1.00% PIK), 05/15/23(j)			19,298		19,949,711
Oasis Petroleum, Inc.:
6.88%, 03/15/22			12,281		12,403,810
6.88%, 01/15/23			8,762		8,762,000
6.25%, 05/01/26(b)			12,669		12,067,223
Parsley Energy LLC(b):
6.25%, 06/01/24			3,672		3,795,930
5.38%, 01/15/25			21,280		21,226,800
5.25%, 08/15/25			6,084		5,992,740
5.63%, 10/15/27			14,304		14,232,480
PBF Holding Co. LLC, 7.25%, 06/15/25			10,049		10,315,299
PDC Energy, Inc.:
1.13%, 09/15/21(k)			484		450,710
6.13%, 09/15/24			1,849		1,849,000
5.75%, 05/15/26			7,115		6,954,913
QEP Resources, Inc.:
6.88%, 03/01/21			10,814		11,084,350
5.38%, 10/01/22			19,046		18,617,465
5.25%, 05/01/23			13,773		12,981,053
5.63%, 03/01/26			23,812		21,549,860
Range Resources Corp.:
5.88%, 07/01/22			1,294		1,306,940
5.00%, 08/15/22			3,913		3,873,870
5.00%, 03/15/23			2,440		2,391,200
4.88%, 05/15/25			6,622		6,141,905
Repsol International Finance BV(a):
(EUR Swap Annual 6 Year + 3.56%), 3.88%(h)	EUR		1,151		1,353,165
(EUR Swap Annual 10 Year + 4.20%), 4.50%, 03/25/75			1,714		2,101,935
Sanchez Energy Corp.:
7.75%, 06/15/21	USD		39,082		5,422,628
6.13%, 01/15/23			2,253		304,155
Seven Generations Energy Ltd.(b):
6.75%, 05/01/23			663		681,233
6.88%, 06/30/23			503		516,832
5.38%, 09/30/25			4,316		4,218,890
SM Energy Co.:
6.13%, 11/15/22			11,976		11,976,000
5.00%, 01/15/24			14,582		13,488,350

SCHEDULES OF INVESTMENTS 57

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
5.63%, 06/01/25	USD		12,491	$	11,549,678
6.75%, 09/15/26			3,870		3,710,363
6.63%, 01/15/27			5,439		5,167,050
Southwestern Energy Co.:
6.20%, 01/23/25			4,863		4,777,897
7.50%, 04/01/26			5,416		5,524,320
7.75%, 10/01/27			13,795		14,088,144
Sunoco LP:
4.88%, 01/15/23			12,220		12,414,298
5.50%, 02/15/26			8,160		8,078,400
6.00%, 04/15/27(b)			2,077		2,086,762
Tallgrass Energy Partners LP(b):
4.75%, 10/01/23			5,885		5,919,957
5.50%, 09/15/24			14,865		15,236,625
5.50%, 01/15/28			48,751		48,887,015
Targa Resources Partners LP:
5.25%, 05/01/23			1,688		1,718,283
4.25%, 11/15/23			3,270		3,257,737
5.13%, 02/01/25			10,272		10,477,440
5.88%, 04/15/26(b)			19,308		20,408,556
5.38%, 02/01/27			5,678		5,805,755
6.50%, 07/15/27(b)			15,935		17,189,881
5.00%, 01/15/28			22,692		22,379,985
6.88%, 01/15/29(b)			30,812		33,469,535
TerraForm Power Operating LLC(b):
4.25%, 01/31/23			10,029		9,908,552
6.63%, 06/15/25(l)			2,845		2,980,137
5.00%, 01/31/28			13,270		12,805,550
Whiting Petroleum Corp., 6.63%, 01/15/26			16,339		16,012,220
WPX Energy, Inc.:
6.00%, 01/15/22			2,352		2,440,200
8.25%, 08/01/23			5,757		6,476,625
					1,554,749,005
Paper & Forest Products — 0.2%
Mercer International, Inc.:
6.50%, 02/01/24			7,260		7,423,350
5.50%, 01/15/26			4,366		4,278,680
Norbord, Inc., 6.25%, 04/15/23(b)			9,730		9,973,250
Smurfit Kappa Acquisitions ULC:
2.38%, 02/01/24	EUR		899		1,052,361
2.88%, 01/15/26			1,699		1,982,088
					24,709,729
Personal Products — 0.1%
Coty, Inc., 6.50%, 04/15/26(b)	USD		9,718		9,499,345
Pharmaceuticals — 2.5%
Bausch Health Americas, Inc.(b):
9.25%, 04/01/26			15,014		16,429,820
8.50%, 01/31/27			51,726		54,829,560
Bausch Health Cos., Inc.:
5.50%, 03/01/23(b)			22,080		22,190,400
4.50%, 05/15/23	EUR		21,671		24,499,057
5.88%, 05/15/23(b)	USD		44,806		45,366,075
7.00%, 03/15/24(b)			27,858		29,473,764
6.13%, 04/15/25(b)			38,955		38,565,450
5.50%, 11/01/25(b)			64,495		65,865,519
9.00%, 12/15/25(b)			31,904		34,657,315
5.75%, 08/15/27(b)			8,896		9,121,069
Catalent Pharma Solutions, Inc., 4.88%, 01/15/26(b)			14,203		14,060,970
Elanco Animal Health, Inc., 4.90%, 08/28/28(b)			12,119		12,865,942
Endo DAC, 6.00%, 07/15/23(b)			3,806		2,930,620
Nidda BondCo GmbH, 7.25%, 09/30/25	EUR		1,899		2,182,819

Security		Par (000)		Value
Pharmaceuticals (continued)
Par Pharmaceutical, Inc., 7.50%, 04/01/27(b)	USD		29,585	$	29,999,190
Rossini SARL, 6.75%, 10/30/25	EUR		5,107		6,058,182
					409,095,752
Professional Services — 0.5%
Intertrust Group BV, 3.38%, 11/15/25			2,973		3,405,831
Jaguar Holding Co. II, 6.38%, 08/01/23(b)	USD		80,112		81,614,100
					85,019,931
Real Estate Management & Development — 0.3%
AT Securities BV, (USD Swap Semi 5 Year + 3.55%), 5.25%(a)(h)			2,250		2,135,844
Five Point Operating Co. LP, 7.88%, 11/15/25(b)			8,669		8,300,568
Greystar Real Estate Partners LLC, 5.75%, 12/01/25(b)			10,023		10,048,058
Howard Hughes Corp. (The), 5.38%, 03/15/25(b)			8,221		8,210,066
Newmark Group, Inc., 6.13%, 11/15/23			5,093		5,248,612
Residomo SRO, 3.38%, 10/15/24	EUR		2,303		2,617,452
Summit Properties Ltd., 2.00%, 01/31/25			1,140		1,149,291
Unique Pub Finance Co. plc (The), Series N, 6.46%, 03/30/32	GBP		3,066		3,814,591
					41,524,482
Road & Rail — 0.5%
Avis Budget Finance plc, 4.75%, 01/30/26	EUR		3,882		4,446,734
Avolon Holdings Funding Ltd.(b):
5.13%, 10/01/23	USD		15,891		16,169,093
5.25%, 05/15/24			15,051		15,502,530
Herc Rentals, Inc., 7.50%, 06/01/22(b)			1,737		1,808,651
Hertz Corp. (The), 7.63%, 06/01/22(b)			16,812		17,207,082
Hertz Holdings Netherlands BV, 5.50%, 03/30/23	EUR		3,539		4,097,481
Park Aerospace Holdings Ltd.(b):
3.63%, 03/15/21	USD		13,139		13,040,458
5.25%, 08/15/22			15,785		16,178,046
					88,450,075
Semiconductors & Semiconductor Equipment — 0.7%
Advanced Micro Devices, Inc., 7.50%, 08/15/22			4,048		4,518,580
Broadcom, Inc.(b):
3.13%, 04/15/21			9,135		9,124,221
3.13%, 10/15/22			13,068		13,008,279
3.63%, 10/15/24			13,068		12,965,808
4.25%, 04/15/26			13,068		12,971,428
4.75%, 04/15/29			13,068		13,005,927
Entegris, Inc., 4.63%, 02/10/26(b)			9,837		9,738,630
Qorvo, Inc., 5.50%, 07/15/26(b)			22,346		23,074,480
Sensata Technologies UK Financing Co. plc, 6.25%, 02/15/26(b)			8,460		8,967,600
Versum Materials, Inc., 5.50%, 09/30/24(b)			7,794		8,193,442
					115,568,395
Software — 4.2%
ACI Worldwide, Inc., 5.75%, 08/15/26(b)			36,138		36,996,278
CDK Global, Inc., 4.88%, 06/01/27			36,712		36,666,110
Change Healthcare Holdings LLC, 5.75%, 03/01/25(b)			24,355		24,050,563
Genesys Telecommunications Laboratories, Inc., 10.00%, 11/30/24(b)			54,826		59,760,340
Infor Software Parent LLC, 7.13% (7.13% Cash or 7.88% PIK), 05/01/21(b)(j)			12,967		12,954,681
Infor US, Inc., 6.50%, 05/15/22			120,375		122,030,156
Informatica LLC, 7.13%, 07/15/23(b)			42,259		43,051,356
Nuance Communications, Inc.:
6.00%, 07/01/24			5,377		5,511,425
5.63%, 12/15/26			8,772		9,012,616

58 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Software (continued)
PTC, Inc., 6.00%, 05/15/24	USD		10,009	$	10,471,916
RP Crown Parent LLC, 7.38%, 10/15/24(b)			27,741		28,434,525
Solera LLC, 10.50%, 03/01/24(b)			108,647		117,764,656
Sophia LP, 9.00%, 09/30/23(b)			11,755		12,195,813
SS&C Technologies, Inc., 5.50%, 09/30/27(b)			78,682		79,468,820
Symantec Corp.:
3.95%, 06/15/22			1,750		1,753,910
5.00%, 04/15/25(b)			20,114		20,144,047
TIBCO Software, Inc., 11.38%, 12/01/21(b)			56,249		59,877,061
Veritas US, Inc., 7.50%, 02/01/23(b)			6,588		6,291,540
					686,435,813
Specialty Retail — 0.4%
Asbury Automotive Group, Inc., 6.00%, 12/15/24			17,546		18,045,184
Group 1 Automotive, Inc.:
5.00%, 06/01/22			5,885		5,899,712
5.25%, 12/15/23(b)			1,743		1,751,715
L Brands, Inc.:
6.88%, 11/01/35			21,674		18,720,918
6.75%, 07/01/36			3,311		2,781,240
Penske Automotive Group, Inc., 5.50%, 05/15/26			1,566		1,542,510
Staples, Inc., 8.50%, 09/15/25(b)			15,548		16,966,755
Tendam Brands SAU, 5.00%, 09/15/24	EUR		1,201		1,347,071
					67,055,105
Technology Hardware, Storage & Peripherals — 0.6%
Dell International LLC(b):
4.42%, 06/15/21	USD		5,605		5,750,506
7.13%, 06/15/24			40,830		43,294,160
Western Digital Corp., 4.75%, 02/15/26			30,102		28,747,410
Xerox Corp.:
4.80%, 03/01/35			16,911		13,275,135
6.75%, 12/15/39			1,333		1,268,016
					92,335,227
Textiles, Apparel & Luxury Goods — 0.1%
European TopSoho SARL, 4.00%, 09/21/21(k)	EUR		1,800		1,994,658
PVH Corp., 3.13%, 12/15/27			2,466		2,808,539
William Carter Co. (The), 5.63%, 03/15/27(b)	USD		8,227		8,504,661
					13,307,858
Thrifts & Mortgage Finance — 0.3%
Deutsche Pfandbriefbank AG, 4.60%, 02/22/27	EUR		700		840,467
Jerrold Finco plc:
6.25%, 09/15/21	GBP		1,100		1,447,022
6.13%, 01/15/24			1,232		1,608,529
Ladder Capital Finance Holdings LLLP, 5.25%, 10/01/25(b)	USD		9,335		8,961,600
Nationstar Mortgage Holdings, Inc.(b):
8.13%, 07/15/23			13,664		14,073,920
9.13%, 07/15/26			16,195		16,437,925
					43,369,463
Trading Companies & Distributors — 1.1%
Beacon Roofing Supply, Inc., 4.88%, 11/01/25(b)			943		891,135
Flexi-Van Leasing, Inc., 10.00%, 02/15/23(b)			6,105		5,628,810
Fortress Transportation & Infrastructure Investors LLC(b):
6.75%, 03/15/22			3,498		3,559,215
6.50%, 10/01/25			3,856		3,807,800
HD Supply, Inc., 5.38%, 10/15/26(b)			103,574		105,645,480
United Rentals North America, Inc.:
4.63%, 07/15/23			639		648,984
5.50%, 07/15/25			12,489		12,770,003

Security		Par (000)		Value
Trading Companies & Distributors (continued)
4.63%, 10/15/25	USD		13,864	$	13,690,700
5.88%, 09/15/26			13,563		14,020,751
6.50%, 12/15/26			2,152		2,264,980
5.50%, 05/15/27			22,482		22,706,820
					185,634,678
Wireless Telecommunication Services — 2.4%
Digicel Group Two Ltd., 8.25%, 09/30/22(b)			5,700		1,890,262
Digicel International Finance Ltd., 8.75%, 05/25/24(b)			19,056		18,865,440
Digicel Ltd., 6.00%, 04/15/21(b)			26,054		21,695,426
Hughes Satellite Systems Corp., 5.25%, 08/01/26			8,012		7,951,910
Matterhorn Telecom SA, 3.88%, 05/01/22	EUR		3,889		4,405,413
SoftBank Group Corp.:
4.00%, 04/20/23			6,341		7,643,961
4.50%, 04/20/25			500		603,172
4.75%, 07/30/25			1,709		2,060,851
(USD Swap Rate 5 Year + 4.85%), 6.87%(a)(h)	USD		200		184,796
5.00%, 04/15/28	EUR		1,296		1,553,372
Sprint Corp.:
7.88%, 09/15/23	USD		62,604		65,577,690
7.13%, 06/15/24			74,774		75,895,610
7.63%, 02/15/25			10,624		10,836,480
7.63%, 03/01/26			87,035		88,209,973
Telefonica Europe BV(a)(h):
(GBP Swap 5 Year + 4.46%), 6.75%	GBP		1,200		1,661,093
(EUR Swap Annual 5 Year + 3.86%), 3.75%	EUR		1,200		1,395,981
(EUR Swap Annual 5 Year + 2.33%), 2.63%			1,500		1,615,831
(EUR Swap Annual 10 Year + 4.30%), 5.88%			2,600		3,237,370
(EUR Swap Annual 6 Year + 4.11%), 4.38%			2,000		2,301,203
T-Mobile USA, Inc.:
4.00%, 04/15/22	USD		1,180		1,193,275
6.00%, 03/01/23			2,626		2,698,215
6.00%, 04/15/24			1,489		1,546,699
6.38%, 03/01/25			8,418		8,765,663
5.13%, 04/15/25			866		886,567
6.50%, 01/15/26			7,436		7,937,930
4.50%, 02/01/26			23,185		23,172,321
4.75%, 02/01/28			32,679		32,393,059
Wind Tre SpA:
(EURIBOR 3 Month + 2.75%), 2.75%, 01/20/24(a)	EUR		1,501		1,597,876
3.13%, 01/20/25			2,005		2,120,010
					399,897,449
Total Corporate Bonds — 82.9% (Cost: $13,440,359,313)					13,544,291,391
Floating Rate Loan Interests — 10.3%(m)
Aerospace & Defense — 0.1%
Atlantic Aviation FBO, Inc., Term Loan B, (LIBOR USD 1 Month + 3.75%), 6.25%, 11/30/25(e)	USD		2,624		2,644,106
HENSOLDT Holding GmbH, Term Loan B3, (EURIBOR 3 Month + 3.25%), 3.25%, 02/28/24	EUR		2,500		2,739,958
Sequa Mezzanine Holdings LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 7.78%, 11/28/21	USD		10,380		10,133,131
					15,517,195
Auto Components — 0.4%
Mavis Tire Express Services Corp., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.74%, 03/15/25			3,629		3,528,834

SCHEDULES OF INVESTMENTS 59

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Auto Components (continued)
Panther BF Aggregator 2 LP, Term Loan B, 03/18/26(n)	USD		58,025	$	57,336,243
					60,865,077
Building Products — 0.0%
LSF10 XL Bidco SCA, Term Loan, (EURIBOR 3 Month + 4.00%), 4.00%, 04/11/24	EUR		2,220		2,461,348
LSF10 XL Bidco SCA, Term Loan B, (EURIBOR 3 Month + 4.00%), 4.00%, 04/11/24			1,000		1,108,715
					3,570,063
Capital Markets — 0.2%
Travelport Finance (Luxembourg) SA, 1st Lien Term Loan, 03/18/26(n)	USD		29,518		28,669,358
Chemicals — 0.6%
Allnex (Luxembourg) & Cy SCA, Term Loan B1, (EURIBOR 3 Month + 3.25%), 3.25%, 09/13/23	EUR		3,959		4,399,302
Alpha 3 BV, Term Loan, (LIBOR USD 3 Month + 3.00%), 5.60%, 01/31/24	USD		20,378		19,887,431
Ascend Performance Materials Operations LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 5.25%), 7.75%, 08/12/22			28,792		28,720,124
Greenrock Finance, Inc., Term Loan, (LIBOR USD 3 Month + 3.50%), 6.15%, 06/28/24			3,186		3,160,795
Invictus Co., Term Loan B26, (LIBOR USD 1 Month + 6.75%), 9.24%, 03/30/26(e)			2,582		2,556,149
Messer Industries LLC, Term Loan, 03/01/26(n)			11,018		10,777,464
Starfruit Finco BV, Term Loan, (LIBOR USD 1 Month + 3.25%), 5.74%, 10/01/25			27,257		26,831,606
					96,332,871
Commercial Services & Supplies — 0.5%
Brand Energy & Infrastructure Services, Inc., Term Loan, (LIBOR USD 3 Month + 4.25%), 6.85% - 7.01%, 06/21/24			61,098		58,407,636
GFL Environmental, Inc., Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.50%, 05/30/25			23,315		22,495,080
West Corp., Term Loan, (LIBOR USD 3 Month + 3.50%), 6.13%, 10/10/24			3,555		3,292,649
					84,195,365
Communications Equipment — 0.0%
CommScope, Inc., Term Loan B2, 02/06/26(n)			3,431		3,425,405
Construction & Engineering — 0.1%
SRS Distribution, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.75%, 05/23/25			18,440		17,567,901
Containers & Packaging — 0.0%
Verallia Packaging SAS, Term Loan B4, (EURIBOR 1 Month + 2.75%), 2.75%, 10/31/22	EUR		2,647		2,930,380
Diversified Consumer Services — 0.1%
TierPoint LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 6.25%, 05/06/24	USD		6,886		6,507,224
Verisure Holding AB, Term Loan B1, (EURIBOR 3 Month + 3.00%), 3.00%, 10/21/22	EUR		4,000		4,420,996
					10,928,220
Diversified Financial Services — 0.0%
LTI Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 6.00%, 09/06/25	USD		2,938		2,822,838
WP CPP Holdings, Term Loan B, (LIBOR USD 3 Month + 3.75%), 6.51%, 03/16/25			2,581		2,558,434
					5,381,272

Security		Par (000)			Value
Diversified Telecommunication Services — 0.3%
Altice France SA, Term Loan, (LIBOR USD 1 Month + 4.00%), 6.48%, 08/14/26	USD		13,053		$	12,478,526
CenturyLink, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 5.25%, 01/31/25			33,266			32,580,519
						45,059,045
Electric Utilities — 0.0%
Vistra Operations Co. LLC, Term Loan B3, 12/31/25(n)			—	(o)		—
Energy Equipment & Services — 0.8%
McDermott International, Inc., Term Loan, (LIBOR USD 1 Month + 5.00%), 7.50%, 05/12/25			80,700			77,178,302
Pioneer Energy Services Corp., Term Loan, (LIBOR USD 1 Month + 7.75%), 10.23%, 11/08/22(e)			41,248			40,835,981
Weatherford International Ltd., Term Loan, (LIBOR USD 1 Month + 1.43%), 3.93%, 07/13/20			16,505			16,083,694
						134,097,977
Food Products — 0.0%
Chobani LLC, Term Loan, (LIBOR USD 1 Month + 3.50%), 6.00%, 10/10/23			3,672			3,511,402
Gas Utilities — 0.1%
Midcoast Operating LP, Term Loan, (LIBOR USD 3 Month + 5.50%), 8.10%, 06/30/25			12,780			12,694,340
Health Care Equipment & Supplies — 0.5%
Immucor, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 7.80%, 06/15/21			40,998			40,895,255
Sterigenics-Nordion Holdings LLC, Term Loan, 05/15/22(n)			35,563			34,911,503
						75,806,758
Health Care Providers & Services — 0.6%
AHP Health Partners, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 7.00%, 06/30/25			6,885			6,868,211
Concentra, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.50%), 8.99%, 07/25/23			10,673			10,673,266
Envision Healthcare Corp., Term Loan, (LIBOR USD 1 Month + 3.75%), 6.25%, 10/10/25			41,598			38,859,177
Gentiva Health Services, Inc., Term Loan, (LIBOR USD 1 Month + 7.00%), 9.50%, 07/02/26			2,851			2,907,677
Gentiva Health Services, Inc., Term Loan U, (LIBOR USD 1 Month + 3.75%), 6.25%, 07/02/25(e)			13,258			13,274,355
LGC Ltd., Term Loan, 03/08/23(n)			5,000			4,883,350
Quorum Health Corp., 1st Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 9.25%, 04/29/22			10,885			10,683,431
Team Health Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 5.25%, 02/06/24			5,218			4,626,384
						92,775,851
Health Care Technology — 0.3%
Athenahealth, Inc., Term Loan B, (LIBOR USD 3 Month + 4.50%), 7.20%, 02/05/26			50,501			49,743,485
Hotels, Restaurants & Leisure — 0.4%
Dorna Sports SL, 1st Lien Term Loan, 05/03/24(n)	EUR		1,348			1,482,693
IRB Holding Corp., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.74%, 02/05/25	USD		9,557			9,305,988
Silk Bidco AS, 1st Lien Term Loan B, (EURIBOR 6 Month + 3.75%), 3.75%, 02/24/25	EUR		3,500			3,845,168
Stars Group Holdings BV, Term Loan, (LIBOR USD 3 Month + 3.50%), 6.10%, 07/10/25	USD		55,154			55,003,008
						69,636,857

60 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Industrial Conglomerates — 0.4%
Accudyne Industries LLC, Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 08/18/24	USD		19,424	$	19,396,830
PSAV Holdings LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 3.25%),5.66% - 5.88%, 02/21/25			6,233		6,061,770
PSAV Holdings LLC, 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 9.99%, 09/01/25(e)			3,636		3,390,201
Uber Technologies, Inc., Term Loan, (LIBOR USD 1 Month + 4.00%), 6.49%, 03/14/25			21,418		21,412,355
Vertiv Co., Term Loan B, (LIBOR USD 3 Month + 4.00%), 6.63%, 11/30/23			24,318		22,798,263
					73,059,419
Insurance — 0.4%
Alliant Holdings Intermediate LLC, Term Loan, (LIBOR USD 1 Month + 2.75%), 5.23%, 05/09/25			2,505		2,402,989
Asurion LLC, 2nd Lien Term Loan B2, (LIBOR USD 1 Month + 6.50%), 9.00%, 08/04/25			22,991		23,268,731
Sedgwick, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 12/31/25			31,880		31,169,492
USI, Inc., 1st Lien Term Loan B, (LIBOR USD 3 Month + 3.00%), 5.60%, 05/16/24			4,856		4,702,689
					61,543,901
Interactive Media & Services — 0.1%
Getty Images, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 7.00%, 02/19/26			10,782		10,687,635
IT Services — 0.7%
Boxer Parent Co., Inc., Term Loan B, 10/02/25(n)			4,314		4,220,260
CCC Information Services, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 9.25%, 04/28/25			2,118		2,099,675
Deck Chassis Acquisition, Inc., Term Loan, (LIBOR USD 3 Month + 6.00%), 8.69%, 06/15/23(e)			1,344		1,356,156
Mitchell International, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 11/29/24			9,890		9,488,372
Mitchell International, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 9.75%, 12/01/25			5,095		4,955,337
Peak 10 Holding Corp., 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 9.99%, 08/01/25			3,818		3,347,238
Renaissance Learning, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 05/24/25			3,208		3,069,276
SS&C Technologies Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.75%, 04/16/25			6,957		6,892,789
SS&C Technologies, Inc., 1st Lien Term Loan B5, (LIBOR USD 1 Month + 2.25%), 4.75%, 04/16/25			7,669		7,596,540
Verscend Holding Corp., Term Loan B, (LIBOR USD 1 Month + 4.50%), 7.00%, 08/27/25			65,087		64,517,954
Zephyr Midco 2 Ltd., Term Loan B, (LIBOR GBP 1 Month + 4.75%), 5.48%, 07/23/25	GBP		3,000		3,855,734
					111,399,331
Life Sciences Tools & Services — 0.0%
Albany Molecular Research, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.75%, 08/30/24(e)	USD		4,086		4,014,372

Security		Par (000)		Value
Machinery — 0.2%
Altra Industrial Motion Corp., Term Loan, 09/26/25(n)	USD		3,877	$	3,804,169
Gates Global LLC, Term Loan, (EURIBOR 3 Month + 3.00%), 3.00%, 04/01/24	EUR		3,482		3,861,374
Titan Acquisition Ltd., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 03/28/25	USD		32,541		30,198,117
					37,863,660
Media — 0.8%
Ascend Learning LLC, Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.50%, 07/12/24			3,692		3,606,926
Intelsat Jackson Holdings SA, Term Loan:
(LIBOR USD 1 Month + 3.75%), 6.24% , 11/27/23			4,956		4,877,001
(LIBOR USD 6 Month + 6.63%), 6.63% , 01/02/24			84,234		84,086,748
(LIBOR USD 1 Month + 4.50%), 6.99% , 01/02/24			15,189		15,200,234
Promotora de Informaciones SA, 1st Lien Term Loan 2, 11/30/22(n)	EUR		3,815		4,131,369
Promotora de Informaciones SA, Term Loan, 12/31/22(n)			450		482,776
Tele Columbus AG, Term Loan, (EURIBOR 6 Month + 3.00%), 3.00%, 10/15/24			2,497		2,531,779
Xplornet Communications, Inc., Term Loan, (LIBOR USD 3 Month + 4.00%), 6.60%, 09/09/21(e)	USD		9,216		9,146,999
					124,063,832
Multiline Retail — 0.1%
Neiman Marcus Group Ltd. LLC, Term Loan, (LIBOR USD 1 Month + 3.25%), 5.73%, 10/25/20			18,076		16,765,247
Multi-Utilities — 0.0%
Exgen Renewables IV LLC, Term Loan, (LIBOR USD 3 Month + 3.00%), 5.63%, 11/28/24			4,310		4,030,022
Oil, Gas & Consumable Fuels — 0.6%
BCP Raptor II LLC, Term Loan, (LIBOR USD 3 Month + 4.75%), 7.37%, 10/22/25			4,231		3,990,268
California Resources Corp., Term Loan:
(LIBOR USD 1 Month + 10.38%), 12.87% , 12/31/21			29,024		30,566,500
(LIBOR USD 1 Month + 4.75%), 7.25% , 12/31/22			47,749		46,883,375
CNX Resources Corp., Term Loan, (LIBOR USD 1 Month + 4.25%), 6.75%, 11/26/21			10,607		10,726,329
Gavilan Resources LLC, 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.00%), 8.49%, 03/01/24			6,698		5,197,612
					97,364,084
Pharmaceuticals — 0.3%
Bausch Health Co., Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.48%, 06/02/25			9,399		9,331,840
Endo Pharmaceuticals, Inc., Term Loan B, 04/29/24(n)			24,136		23,649,478
Valeant Pharmaceuticals International, Inc., Term Loan, 11/14/25(n)			8,900		8,790,075
					41,771,393
Professional Services — 0.1%
Dun & Bradstreet Corp. (The), 1st Lien Term Loan B, (LIBOR USD 1 Month + 5.00%), 7.49%, 02/06/26			22,146		21,841,493

SCHEDULES OF INVESTMENTS 61

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)			Value
Software — 1.2%
Financial & Risk US Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.75%), 6.25%, 10/01/25	USD		153,248		$	148,678,297
Infor US, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 5.25%, 02/01/22			5,143			5,114,514
Kronos, Inc., 2nd Lien Term Loan B, (LIBOR USD 3 Month + 8.25%), 10.99%, 11/01/24			35,285			35,748,260
McAfee LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 6.25%, 09/30/24			2,600			2,595,342
PowerSchool Group LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 3.25%), 5.99%, 07/31/25			4,481			4,340,889
SS&C Technologies Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.75%, 04/16/25			4,514			4,472,031
						200,949,333
Specialty Retail — 0.1%
CD&R Firefly Bidco Ltd., Term Loan, (LIBOR GBP 3 Month + 4.50%), 5.41%, 06/23/25	GBP		4,000			5,119,931
EG Group Ltd., Term Loan B1, (EURIBOR 3 Month + 4.00%), 4.00%, 02/07/25	EUR		3,967			4,354,507
						9,474,438
Wireless Telecommunication Services — 0.3%
Digicel International Finance Ltd., Term Loan, 05/27/24(n)	USD		—	(o)		—
Ligado Networks LLC, Term Loan, 12/07/20(n)			93,176			22,507,750
New Lightsquared LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 0.00%), 11.35%, 12/07/20			12,712			9,255,501
Sprint Communications, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.50%, 02/02/24(e)			22,147			21,787,596
						53,550,847
Total Floating Rate Loan Interests — 10.3% (Cost: $1,771,464,993)						1,681,087,829
Foreign Agency Obligations — 0.0%
France — 0.0%
Electricite de France SA, (EUR Swap Annual 6 Year + 3.44%), 4.00%(a)(h)	EUR		600			696,599
Total Foreign Agency Obligations — 0.0% (Cost: $698,538)						696,599
		Shares
Investment Companies — 0.4%
SPDR Bloomberg Barclays High Yield Bond ETF			2,000,000			71,940,000
Total Investment Companies — 0.4% (Cost: $71,870,000)						71,940,000
		Par (000)
Non-Agency Mortgage-Backed Securities — 0.0%
Commercial Mortgage-Backed Securities — 0.0%
ROCKT:
Series 2019, 0.00%, 04/20/32(c)	USD		4,920			4,920,000
TotalNon-Agency Mortgage-Backed Securities — 0.0% (Cost: $4,920,000)						4,920,000

Security		Beneficial Interest (000)		Value
Other Interests — 0.0%(d)
Auto Components — 0.0%
Lear Corp., Escrow(e)(i)(p)	USD		15,314	$	1
Capital Markets — 0.0%
Lehman Brothers Holdings Capital Trust Escrow Bonds(i)			11,550		219,450
Lehman Brothers Holdings Capital Trust VII Escrow Bonds			6,500		123,500
Lehman Brothers Holdings, Inc.(i)			5,675		107,825
					450,775
Independent Power and Renewable Electricity Producers — 0.0%(d)(e)(i)
Mirant America Corp., Escrow(q)			5,134		1
Mirant Americas Generation LLC, Escrow(r)			1,205		—
					1
Media — 0.0%
Adelphia Communications Corp., Escrow(d)(e)(i)			325		—
Total Other Interests — 0.0%					450,777
		Par (000)
Preferred Securities — 1.8%
Capital Trusts — 1.4%(h)
Banks — 1.3%(m)
Bank of America Corp.:
Series X, 6.25%			22,098		23,423,880
Series Z, 6.50%			21,031		22,819,476
Series AA, 6.10%			24,034		25,430,616
Series DD, 6.30%(a)			8,080		8,776,900
CIT Group, Inc., Series A, 5.80%			14,850		14,701,500
Citigroup, Inc.:
5.90%			7,660		7,803,625
6.25%			8,767		9,227,267
JPMorgan Chase & Co.:
6.22%(a)			15,347		15,423,735
Series V, 5.00%			17,297		17,201,866
Series Z, 5.30%			770		778,085
Series Q, 5.15%			7,221		7,271,186
Series X, 6.10%			25,667		26,950,350
Wells Fargo & Co., Series U, 5.87%			26,139		27,929,522
					207,738,008
Capital Markets — 0.1%(m)
Goldman Sachs Group, Inc. (The), Series P, 5.00%			6,608		6,104,140
Morgan Stanley, Series H, 5.45%			6,961		6,978,403
					13,082,543
Entertainment — 0.0%
NBCUniversal Enterprise, Inc., 5.25%(b)(d)			2,827		2,869,405
Total Capital Trusts — 1.4% (Cost: $219,399,368)					223,689,956
		Shares
Preferred Stocks — 0.0%
Banks — 0.0%
CF-B L2 (D), LLC (Acquired04/08/15-12/15/15, cost $3,532,445)(s)			3,610,706		1,794,159
Total Preferred Stocks — 0.0% (Cost: $3,532,445)					1,794,159

62 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security	Shares		Value
Trust Preferreds — 0.4%(m)
Banks — 0.4%
GMAC Capital Trust I, Series 2, 8.47%, 02/15/40		2,327,792	$	60,615,704
Total Trust Preferreds — 0.4% (Cost: $53,123,046)				60,615,704
Total Preferred Securities — 1.8% (Cost: $276,054,859)				286,099,819
Warrants — 0.0%
Diversified Consumer Services — 0.0%
HMH Holdings, Inc. (Education Media) (Expires 06/22/19)(d)(e)		11,931		—
Total Warrants — 0.0%				—
Total Long-Term Investments — 99.2% (Cost: $16,235,006,692)				16,198,528,424
Short-Term Securities — 2.6%(t)
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.37%(v)		398,764,276		398,764,276
JPMorgan US Treasury Plus Money Market Fund, Agency Class, 2.26%		15,654,587		15,654,587
SL Liquidity Series, LLC, Money Market Series, 2.67%(u)(v)		12,180,309		12,183,963
Total Short-Term Securities — 2.6% (Cost: $426,600,392)				426,602,826
Total Investments — 101.8% (Cost: $16,661,607,084)				16,625,131,250
Liabilities in Excess of Other Assets — (1.8)%				(288,922,350	)
Net Assets — 100.0%			$	16,336,208,900

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

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

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

^(d)  Non-income producing security.

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

^(f)  All or a portion of the security is held by a wholly-owned subsidiary. See Note 1 of the Notes to Financial Statements for details on the wholly-owned subsidiary.

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

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

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

^(j)  Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

^(k)  Convertible security.

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

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

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

^(o)  Amount is less than $500.

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

^(q)  Security, or a portion of the security, is on loan.

^(r)  Zero-coupon bond.

^(s)  Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $1,794,159, representing less than 0.05% of its net assets as of period end, and an original cost of $3,532,445.

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

^(u)  Security was purchased with the cash collateral from loaned securities.

^(v)  During the period ended March 31, 2019, investments in issuers considered to be affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

Affiliated Persons and /or Related Parties	Shares Held at 09/30/18		Shares Purchased		Shares Sold			Shares Held at 03/31/19		Value at 03/31/19		Income			Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		698,160,915		—		(299,396,639	)(b)		398,764,276	$	398,764,276	$	4,818,996		$	—	$	—
SL Liquidity Series, LLC, Money Market Series		147,372,085		—		(135,191,776	)(b)		12,180,309		12,183,963		281,629	(c)		23,503		2,187
iShares iBoxx $ High Yield Corp Bond ETF*		—		7,943,464		(7,943,464	)		—		—		1,782,283			3,426,877		—
Peninsula Energy Ltd., Warrants (Expires 12/31/18)*		3,502,308		—		(3,502,308	)		—		—		—			12		(2,521	)
										$	410,948,239	$	6,882,908		$	3,450,392	$	(334	)

* No longer held by the Fund as of period end.

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

^(b)  Represents net shares sold.

^(c)  Represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

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

SCHEDULES OF INVESTMENTS 63

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio

Reverse Repurchase Agreements

Counterparty

Interest Rate

Trade Date

Maturity Date (a)

Face Value

Face Value Including Accrued Interest

Type of Non-Cash Underlying Collateral

Remaining Contractual Maturity of the Agreements (a)

Deutsche Bank Securities, Inc.

0.95

%

09/13/18

Open

$

4,594,120

$

4,613,262

Corporate Bonds

Open/Demand

Barclays Bank plc

(2.00

)

01/16/19

Open

GBP

845,737

1,094,737

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.00

03/08/19

Open

$

6,070,000

6,074,047

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.00

03/08/19

Open

11,270,000

11,277,513

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

2.20

03/13/19

Open

5,850,000

5,856,793

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

2.20

03/14/19

Open

9,543,750

9,554,248

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.00

03/15/19

Open

5,150,495

5,152,927

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

1.00

03/15/19

Open

4,281,769

4,283,434

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

2.20

03/15/19

Open

9,017,899

9,027,268

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

2.50

03/15/19

Open

16,166,219

16,185,304

Corporate Bonds

Open/Demand

Barclays Capital, Inc.

2.50

03/15/19

Open

21,112,500

21,137,424

Corporate Bonds

Open/Demand

$

94,256,957

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

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
EURO STOXX 50 Index		30		06/21/19	$	1,101	$	20,875
STOXX 600 Banks Index		50		06/21/19		377		(3,444	)
								17,431
Short Contracts
Euro-Bobl		42		06/06/19		6,273		(49,564	)
Euro-Bund		54		06/06/19		10,076		(209,462	)
S&P 500E-Mini Index		868		06/21/19		123,161		(1,657,627	)
Long Gilt		18		06/26/19		3,033		(49,846	)
								(1,966,499	)
							$	(1,949,068	)

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
AUD	10,492,000	USD	7,444,184	State Street Bank and Trust Co.		04/04/19	$	5,990
EUR	24,493,380	USD	27,473,000	ANZ Banking Group Ltd.		04/04/19		7,103
USD	7,496,822	AUD	10,492,000	State Street Bank and Trust Co.		04/04/19		46,648
USD	3,547,569	CAD	4,668,000	JPMorgan Chase Bank NA		04/04/19		54,285
USD	521,519,165	EUR	455,449,000	HSBC Bank plc		04/04/19		10,532,719
USD	59,146,923	GBP	44,414,000	Barclays Bank plc		04/04/19		1,293,947
USD	826,241	GBP	630,000	Natwest Markets plc		04/04/19		5,613
USD	441,153,301	EUR	391,851,000	UBS AG		05/06/19		322,632
USD	54,808,872	GBP	41,989,000	Toronto Dominion Bank		05/07/19		23,377
								12,292,314
EUR	4,887,000	USD	5,494,865	Toronto Dominion Bank		04/04/19		(11,944	)
EUR	391,851,000	USD	439,970,303	UBS AG		04/04/19		(336,996	)
GBP	43,805,000	USD	57,094,859	Toronto Dominion Bank		04/04/19		(35,157	)
GBP	1,239,000	USD	1,631,801	Westpac Banking Corp.		04/04/19		(17,900	)
USD	7,448,766	AUD	10,492,000	State Street Bank and Trust Co.		05/06/19		(6,051	)
								(408,048	)
	Net Unrealized Appreciation						$	11,884,266

64 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Credit Rating (a)		Notional Amount (000) (b)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Casino Guichard Perrachon SA		1.00	%		Quarterly	JPMorgan Chase Bank NA		12/20/22		BB		EUR	1,306	$	(163,732	)	$	(43,240	)	$	(120,492	)
Casino Guichard Perrachon SA		1.00			Quarterly	Barclays Bank plc		06/20/23		BB		EUR	800		(117,518	)		(89,776	)		(27,742	)
Casino Guichard Perrachon SA		1.00			Quarterly	Barclays Bank plc		06/20/23		BB		EUR	200		(29,363	)		(22,190	)		(7,173	)
Casino Guichard Perrachon SA		1.00			Quarterly	Citibank NA		06/20/23		BB		EUR	1,044		(153,339	)		(130,567	)		(22,772	)
Casino Guichard Perrachon SA		1.00			Quarterly	JPMorgan Chase Bank NA		06/20/23		BB		EUR	10		(1,468	)		(857	)		(611	)
CenturyLink, Inc.		1.00			Quarterly	Barclays Bank plc		06/20/23		B+		USD	20,000		(1,474,339	)		(1,912,862	)		438,523
Thomas Cook Group plc		5.00			Quarterly	Citibank NA		06/20/23		B		EUR	473		(111,304	)		54,697			(166,001	)
Thomas Cook Group plc		5.00			Quarterly	Goldman Sachs International		06/20/23		B		EUR	487		(114,419	)		54,932			(169,351	)
Thomas Cook Group plc		5.00			Quarterly	Goldman Sachs International		06/20/23		B		EUR	1,830		(430,286	)		205,066			(635,352	)
Casino Guichard Perrachon SA		1.00			Quarterly	Goldman Sachs International		12/20/23		BB		EUR	2,460		(419,253	)		(367,837	)		(51,416	)
CenturyLink, Inc.		1.00			Quarterly	Barclays Bank plc		12/20/23		B+		USD	5,176		(530,576	)		(375,251	)		(155,325	)
Chesapeake Energy Corp.		5.00			Quarterly	Barclays Bank plc		12/20/23		B+		USD	3,825		(38,351	)		6,915			(45,266	)
Chesapeake Energy Corp.		5.00			Quarterly	Barclays Bank plc		12/20/23		B+		USD	7,878		(78,985	)		69,808			(148,793	)
Monitchem HoldCo 3 SA		5.00			Quarterly	JPMorgan Chase Bank NA		12/20/23		B-		EUR	577		27,395			13,143			14,252
Monitchem HoldCo 3 SA		5.00			Quarterly	JPMorgan Chase Bank NA		12/20/23		B-		EUR	323		15,340			7,360			7,980
CenturyLink, Inc.		1.00			Quarterly	Barclays Bank plc		06/20/25		B+		USD	3,720		(626,595	)		(614,568	)		(12,027	)
Tesco plc		1.00			Quarterly	Barclays Bank plc		12/20/25		BB+		EUR	1,500		(76,568	)		(42,828	)		(33,740	)
Virgin Media Finance plc		5.00			Quarterly	Credit Suisse International		12/20/25		B		EUR	1,880		348,771			313,323			35,448
Tesco plc		1.00			Quarterly	Morgan Stanley & Co. International plc		12/20/28		BB+		EUR	2,930		(305,113	)		(289,332	)		(15,781	)
														$	(4,279,703	)	$	(3,164,064	)	$	(1,115,639	)

^(a)  Using S&P of the issuer or the underlying securities of the index, as applicable.

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

OTC Total Return Swaps

Paid by the Fund			Received by the Fund				Counterparty		Termination Date (a)		Notional Amount (000)		Value		Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Rate (Amount)/Reference	Frequency		Rate/Reference		Frequency
1 month LIBOR minus 0.50%		At Termination		SPDR Bloomberg Barclays High Yield Bond ETF		At Termination		Goldman Sachs International		04/01/19	USD	2,500	$	746,033	$	—		$	746,033
1 month LIBOR minus 0.50%		At Termination		iShares iBoxx High Yield Corporate Bond ETF		At Termination		Goldman Sachs International		04/03/19	USD	5,437		2,120,299		—			2,120,299
1 month LIBOR minus 0.50%		At Termination		SPDR Bloomberg Barclays High Yield Bond ETF		At Termination		Goldman Sachs International		04/04/19	USD	2,500		250,000		—			250,000
3 month LIBOR		Quarterly		iBoxx USD Liquid High Yield Total Return Index		At Termination		Goldman Sachs International		06/20/19	USD	291,498		2,530,236		(1,726,181	)		4,256,417
													$	5,646,568	$	(1,726,181	)	$	7,372,749

^(a)  Certain swaps have no stated termination and can be terminated by either party at any time.

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

Reference Index		Reference Rate
1 month LIBOR	London Interbank Offered Rate		2.49	%
3 Month LIBOR	London Interbank Offered Rate		2.60

Balances Reported in the Statements of Assets and Liabilities for OTC Swaps

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation
OTC Swaps	$	725,244	$	(5,615,489	)	$	7,868,952	$	(1,611,842	)

SCHEDULES OF INVESTMENTS 65

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation(a)	$	—	$	—	$	20,875	$	—	$	—	$	—	$	20,875
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		12,292,314		—		—		12,292,314
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		1,221,447		3,116,332		—		4,256,417		—		8,594,196
	$	—	$	1,221,447	$	3,137,207	$	12,292,314	$	4,256,417	$	—	$	20,907,385
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	—	$	—	$	1,661,071	$	—	$	308,872	$	—	$	1,969,943
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		408,048		—		—		408,048
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		5,501,150		—		—		1,726,181		—		7,227,331
	$	—	$	5,501,150	$	1,661,071	$	408,048	$	2,035,053	$	—	$	9,605,322

^(a)  Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Consolidated Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the six month ended March 31, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts			Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	3,820,180		$	—	$	3,251,073		$	—	$	7,071,253
Forward foreign currency exchange contracts		—		—			—			27,639,614		—			—		27,639,614
Options purchased(a)		—		(585,000	)		(15,074,837	)		—		—			—		(15,659,837	)
Options written		—		585,000			7,687,050			—		—			—		8,272,050
Swaps		—		(23,560,731	)		2,072,176			—		9,682,455			—		(11,806,100	)
	$	—	$	(23,560,731	)	$	(1,495,431	)	$	27,639,614	$	12,933,528		$	—	$	15,516,980
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—		$	(2,097,482	)	$	—	$	(597,294	)	$	—	$	(2,694,776	)
Forward foreign currency exchange contracts		—		—			—			8,780,938		—			—		8,780,938
Options purchased(b)		—		—			195,357			—		—			—		195,357
Swaps		—		(5,029,664	)		735,056			—		1,490,803			—		(2,803,805	)
	$	—	$	(5,029,664	)	$	(1,167,069	)	$	8,780,938	$	893,509		$	—	$	3,477,714

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

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

66 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	527,427,587
Average notional value of contracts — short		80,025,748
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		996,695,316
Average amounts sold — in USD		269,554,506
Options:
Average value of option contracts purchased		—	(a)
Average value of option contracts written		—	(a)
Average notional value of swaption contracts written		—	(a)
Credit default swaps:
Average notional value — sell protection		140,451,255
Total return swaps:
Average notional value		298,498,732

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

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	15,985		$	865,269
Forward foreign currency exchange contracts		12,292,314			408,048
Swaps — OTC(a)		8,594,196			7,227,331
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	20,902,495		$	8,500,648
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(15,985	)		(865,269	)
Total derivative assets and liabilities subject to an MNA	$	20,886,510		$	7,635,379

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

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received			Net Amount of Derivative Assets  (b)(e)
ANZ Banking Group Ltd.	$	7,103	$	—		$	—	$	—		$	7,103
Barclays Bank plc		1,809,193		(1,809,193	)		—		—			—
Citibank NA		54,697		(54,697	)		—		—			—
Credit Suisse International		348,771		—			—		—			348,771
Goldman Sachs International		7,632,747		(2,950,137	)		—		(780,000	)		3,902,610
HSBC Bank plc		10,532,719		—			—		—			10,532,719
JPMorgan Chase Bank NA		97,020		(97,020	)		—		—			—
Natwest Markets plc		5,613		—			—		—			5,613
State Street Bank and Trust Co.		52,638		(6,051	)		—		—			46,587
Toronto Dominion Bank		23,377		(23,377	)		—		—			—
UBS AG		322,632		(322,632	)		—		—			—
	$	20,886,510	$	(5,263,107	)	$	—	$	(780,000	)	$	14,843,403

SCHEDULES OF INVESTMENTS 67

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged (c)			Net Amount of Derivative Liabilities  (d)(e)
Barclays Bank plc	$	3,487,541	$	(1,809,193	)	$	—	$	(1,678,348	)	$	—
Citibank NA		319,340		(54,697	)		—		(260,000	)		4,643
Goldman Sachs International		2,950,137		(2,950,137	)		—		—			—
JPMorgan Chase Bank NA		165,200		(97,020	)		—		(68,180	)		—
Morgan Stanley & Co. International plc		305,113		—			—		—			305,113
State Street Bank and Trust Co.		6,051		(6,051	)		—		—			—
Toronto Dominion Bank		47,101		(23,377	)		—		—			23,724
UBS AG		336,996		(322,632	)		—		—			14,364
Westpac Banking Corp.		17,900		—			—		—			17,900
	$	7,635,379	$	(5,263,107	)	$	—	$	(2,006,528	)	$	365,744

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

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

^(c)  Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

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

^(e)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—	$	371,602,588	$	—	$	371,602,588
Common Stocks:
Auto Components		—		—		28,364,696		28,364,696
Chemicals		47,272,424		—		—		47,272,424
Commercial Services & Supplies		—		—		—		—
Containers & Packaging		24,232,518		—		—		24,232,518
Diversified Financial Services		720		265		—		985
Equity Real Estate Investment Trusts (REITs)		17,906,585		—		—		17,906,585
Hotels, Restaurants & Leisure		70,539,858		—		—		70,539,858
Media		18,877,140		—		—		18,877,140
Metals & Mining		20,130,141		—		—		20,130,141
Oil, Gas & Consumable Fuels		—		—		9,977,367		9,977,367
Semiconductors & Semiconductor Equipment		8,912		—		—		8,912
Textiles, Apparel & Luxury Goods		128,795		—		—		128,795
Corporate Bonds:
Aerospace & Defense		—		688,042,470		—		688,042,470
Air Freight & Logistics		—		974,100		—		974,100
Auto Components		—		192,312,673		—		192,312,673
Automobiles		—		16,304,385		—		16,304,385
Banks		—		202,943,068		—		202,943,068
Building Products		—		106,099,964		—		106,099,964
Capital Markets		—		223,734,252		—		223,734,252
Chemicals		—		380,563,961		2		380,563,963
Commercial Services & Supplies		—		354,115,906		—		354,115,906
Communications Equipment		—		160,735,096		—		160,735,096
Construction & Engineering		—		22,301,443		—		22,301,443
Construction Materials		—		1,624,504		—		1,624,504
Consumer Finance		—		268,748,841		—		268,748,841
Containers & Packaging		—		339,705,186		—		339,705,186
Distributors		—		42,862,410		—		42,862,410
Diversified Consumer Services		—		65,373,356		—		65,373,356
Diversified Financial Services		—		222,585,095		—		222,585,095
Diversified Telecommunication Services		—		797,564,200		—		797,564,200

68 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio

		Level 1		Level 2		Level 3		Total
Electric Utilities		$	—	$	55,757,441	$	—	$	55,757,441
Electrical Equipment			—		44,426,015		—		44,426,015
Electronic Equipment, Instruments & Components			—		34,272,418		—		34,272,418
Energy Equipment & Services			—		379,953,787		—		379,953,787
Entertainment			—		99,701,787		—		99,701,787
Equity Real Estate Investment Trusts (REITs)			—		375,163,450		—		375,163,450
Food & Staples Retailing			—		20,544,677		—		20,544,677
Food Products			—		141,899,503		—		141,899,503
Gas Utilities			—		16,561,826		—		16,561,826
Health Care Equipment & Supplies			—		286,677,829		—		286,677,829
Health Care Providers & Services			—		861,873,697		—		861,873,697
Health Care Technology			—		31,609,411		—		31,609,411
Hotels, Restaurants & Leisure			—		677,546,925		—		677,546,925
Household Durables			—		96,584,209		—		96,584,209
Household Products			—		25,807,424		—		25,807,424
Independent Power and Renewable Electricity Producers			—		281,050,475		—		281,050,475
Insurance			—		146,758,894		—		146,758,894
Interactive Media & Services			—		17,313,540		—		17,313,540
Internet & Direct Marketing Retail			—		19,812,376		—		19,812,376
IT Services	��		—		250,777,156		—		250,777,156
Leisure Products			—		34,055,458		—		34,055,458
Life Sciences Tools & Services			—		20,705,387		—		20,705,387
Machinery			—		258,548,637		—		258,548,637
Marine			—		2,588,087		—		2,588,087
Media			—		1,095,799,990		—		1,095,799,990
Metals & Mining			—		355,071,830		—		355,071,830
Mortgage Real Estate Investment Trusts (REITs)			—		5,776,761		—		5,776,761
Multiline Retail			—		2,329,462		—		2,329,462
Multi-Utilities			—		2,079,720		—		2,079,720
Oil, Gas & Consumable Fuels			—		1,554,749,005		—		1,554,749,005
Paper & Forest Products			—		24,709,729		—		24,709,729
Personal Products			—		9,499,345		—		9,499,345
Pharmaceuticals			—		409,095,752		—		409,095,752
Professional Services			—		85,019,931		—		85,019,931
Real Estate Management & Development			—		41,524,482		—		41,524,482
Road & Rail			—		88,450,075		—		88,450,075
Semiconductors & Semiconductor Equipment			—		115,568,395		—		115,568,395
Software			—		686,435,813		—		686,435,813
Specialty Retail			—		67,055,105		—		67,055,105
Technology Hardware, Storage & Peripherals			—		92,335,227		—		92,335,227
Textiles, Apparel & Luxury Goods			—		13,307,858		—		13,307,858
Thrifts & Mortgage Finance			—		43,369,463		—		43,369,463
Trading Companies & Distributors			—		185,634,678		—		185,634,678
Wireless Telecommunication Services			—		399,897,449		—		399,897,449
Floating Rate Loan Interests:
Aerospace & Defense			—		12,873,089		2,644,106		15,517,195
Auto Components			—		60,865,077		—		60,865,077
Building Products			—		3,570,063		—		3,570,063
Capital Markets			—		28,669,358		—		28,669,358
Chemicals			—		93,776,722		2,556,149		96,332,871
Commercial Services & Supplies			—		84,195,365		—		84,195,365
Communications Equipment			—		3,425,405		—		3,425,405
Construction & Engineering			—		17,567,901		—		17,567,901
Containers & Packaging			—		2,930,380		—		2,930,380
Diversified Consumer Services			—		10,928,220		—		10,928,220
Diversified Financial Services			—		5,381,272		—		5,381,272
Diversified Telecommunication Services			—		45,059,045		—		45,059,045
Energy Equipment & Services			—		93,261,996		40,835,981		134,097,977
Food Products			—		3,511,402		—		3,511,402
Gas Utilities			—		12,694,340		—		12,694,340
Health Care Equipment & Supplies			—		75,806,758		—		75,806,758
Health Care Providers & Services			—		79,501,496		13,274,355		92,775,851
Health Care Technology			—		49,743,485		—		49,743,485
Hotels, Restaurants & Leisure			—		69,636,857		—		69,636,857
Industrial Conglomerates			—		69,669,218		3,390,201		73,059,419
Insurance			—		61,543,901		—		61,543,901

SCHEDULES OF INVESTMENTS 69

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock High Yield Bond Portfolio

	Level 1			Level 2			Level 3		Total
Interactive Media & Services	$	—		$	10,687,635		$	—	$	10,687,635
IT Services		—			110,043,175			1,356,156		111,399,331
Life Sciences Tools & Services		—			—			4,014,372		4,014,372
Machinery		—			37,863,660			—		37,863,660
Media		—			114,916,833			9,146,999		124,063,832
Multiline Retail		—			16,765,247			—		16,765,247
Multi-Utilities		—			4,030,022			—		4,030,022
Oil, Gas & Consumable Fuels		—			97,364,084			—		97,364,084
Pharmaceuticals		—			41,771,393			—		41,771,393
Professional Services		—			21,841,493			—		21,841,493
Software		—			200,949,333			—		200,949,333
Specialty Retail		—			9,474,438			—		9,474,438
Wireless Telecommunication Services		—			31,763,251			21,787,596		53,550,847
Foreign Agency Obligations		—			696,599			—		696,599
Investment Companies		71,940,000			—			—		71,940,000
Non-Agency Mortgage-Backed Securities		—			4,920,000			—		4,920,000
Other Interests		—			450,775			2		450,777
Preferred Securities:
Banks		60,615,704			207,738,008			—		268,353,712
Capital Markets		—			13,082,543			—		13,082,543
Entertainment		—			2,869,405			—		2,869,405
Short-Term Securities		414,418,863			—			—		414,418,863
Liabilities:
Unfunded Floating Rate Loan Interests(a)		—			(12,701	)		—		(12,701	)
Subtotal	$	746,071,660		$	15,727,720,785		$	137,347,982	$	16,611,140,427
Investments valued at NAV(b) . . .										13,978,122
Total Investments									$	16,625,118,549
Derivative Financial Instruments(c)
Assets:
Credit contracts	$	—		$	496,203		$	—	$	496,203
Equity contracts		20,875			3,116,332			—		3,137,207
Foreign currency exchange contracts		—			12,292,314			—		12,292,314
Interest rate contracts		—			4,256,417			—		4,256,417
Liabilities:
Credit contracts		—			(1,611,842	)		—		(1,611,842	)
Equity contracts		(1,661,071	)		—			—		(1,661,071	)
Foreign currency exchange contracts		—			(408,048	)		—		(408,048	)
Interest rate contracts		(308,872	)		—			—		(308,872	)
	$	(1,949,068	)	$	18,141,376		$	—	$	16,192,308

^(a)  Unfunded floating rate loan interests are valued at the unrealized appreciation (depreciation) on the commitment.

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

^(c)  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.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount or face value, including accrued interest, for financial statement purposes. As of period end, reverse repurchase agreements of $94,256,957 are categorized as Level 2 within the disclosure hierarchy.

During the six months ended March 31, 2019 there were no transfers between levels.

See notes to financial statements.

70 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) March 31, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 28.8%
Allegro CLOII-S Ltd., Series2014-1RA, Class A1, (LIBOR USD 3 Month + 1.08%), 3.84%, 10/21/28(a)(b)	USD		5,600	$	5,585,187
Ally Auto Receivables Trust, Series2018-3, Class A2, 2.72%, 05/17/21			16,384		16,385,428
ALM XII Ltd., Series2015-12A, Class A1R2, (LIBOR USD 3 Month + 0.89%), 3.67%, 04/16/27(a)(b)			7,410		7,394,804
ALM XVII Ltd., Series2015-17A, Class A1AR, (LIBOR USD 3 Month + 0.93%), 3.72%, 01/15/28(a)(b)			3,680		3,661,416
American Express Credit Account Master Trust,Series 2019-1, Class A, 2.87%, 10/15/24			56,300		56,815,674
Americredit Automobile Receivables Trust:
Series2018-1, Class A3, 3.07%, 12/19/22			12,640		12,700,768
Series2019-1, Class A3, 2.97%, 11/20/23			11,160		11,222,065
AmeriCredit Automobile Receivables Trust:
Series2016-3, Class A3, 1.46%, 05/10/21			5,285		5,274,237
Series2017-1, Class A3, 1.87%, 08/18/21			2,863		2,853,743
Series2017-4, Class A3, 2.04%, 07/18/22			16,420		16,318,928
AMMC CLO XIII Ltd., Series2013-13A, Class A1LR, (LIBOR USD 3 Month + 1.26%), 4.04%, 07/24/29(a)(b)			4,000		4,006,997
Anchorage Capital CLO 7 Ltd., Series2015-7A, Class AR, (LIBOR USD 3 Month + 0.96%), 3.75%, 10/15/27(a)(b)			14,523		14,475,658
Arbor Realty Commercial Real Estate Notes Ltd., Series 2016-FL1A, Class A, (LIBOR USD 1 Month + 1.70%), 4.18%, 09/15/26(a)(b)			8,830		8,898,461
Ares XXIX CLO Ltd., Series2014-1A, Class A1R, (LIBOR USD 3 Month + 1.19%), 3.96%, 04/17/26(a)(b)			12,768		12,784,624
Atlas Senior Loan Fund III Ltd., Series2013-1A, Class AR, (LIBOR USD 3 Month + 0.83%), 3.51%, 11/17/27(a)(b)			5,400		5,359,631
Atlas Senior Loan Fund IV Ltd., Series2013-2A, Class A1RR, (LIBOR USD 3 Month + 0.68%), 3.36%, 02/17/26(a)(b)			4,619		4,603,056
Atrium XII, Series 12A, Class AR, (LIBOR USD 3 Month + 0.83%), 3.59%, 04/22/27(a)(b)			19,400		19,267,135
Avery Point IV CLO Ltd., Series2014-1A, Class AR, (LIBOR USD 3 Month + 1.10%), 3.87%, 04/25/26(a)(b)			2,757		2,758,149
Avery Point V CLO Ltd., Series2014-5A, Class AR, (LIBOR USD 3 Month + 0.98%), 3.75%, 07/17/26(a)(b)			2,136		2,133,213
B2R Mortgage Trust, Series2015-1, Class A1, 2.52%, 05/15/48(b)			2,934		2,913,087
BA Credit Card Trust:
Series2018-A1, Class A1, 2.70%, 07/17/23			34,385		34,494,650
Series2018-A3, Class A3, 3.10%, 12/15/23			7,000		7,083,978
Ballyrock CLO Ltd.(a)(b):
Series2016-1A, Class A, (LIBOR USD 3 Month + 1.59%), 4.38%, 10/15/28			5,000		5,003,551
Series2016-1A, Class CR, (LIBOR USD 3 Month + 2.40%), 0.00%, 10/15/28			3,000		3,000,000
Benefit Street Partners CLO VII Ltd.,Series 2015-VIIA, Class A1AR, (LIBOR USD 3 Month + 0.78%), 3.56%, 07/18/27(a)(b)			9,500		9,440,554
BlueMountain CLO Ltd., Series2012-2A, Class AR2, (LIBOR USD 3 Month + 1.05%), 3.69%, 11/20/28(a)(b)			13,440		13,407,468
BMW Floorplan Master Owner Trust, Series2018-1, Class A1, 3.15%, 05/15/23(b)			16,230		16,383,287

Security		Par (000)		Value
Asset-Backed Securities (continued)
BSPRT Issuer Ltd., Series2018-FL3, Class A, (LIBOR USD 1 Month + 1.05%), 3.53%, 03/15/28(a)(b)	USD		17,970	$	17,932,484
Capital One Multi-Asset Execution Trust,Series 2019-A1, Class A1, 2.84%, 12/16/24			69,786		70,375,538
CarMax Auto Owner Trust, Series2016-2, Class A3, 1.52%, 02/16/21			4,061		4,045,041
Catamaran CLO Ltd., Series2015-1A, Class AR, (LIBOR USD 3 Month + 0.90%), 3.66%, 04/22/27(a)(b)			5,400		5,379,712
Cedar Funding VI CLO Ltd., Series2016-6A, Class AR, (LIBOR USD 3 Month + 1.09%), 3.85%, 10/20/28(a)(b)			26,890		26,758,511
Chesapeake Funding II LLC(b):
Series2018-1A, Class A1, 3.04%, 04/15/30			16,310		16,362,052
Series2019-1A, Class B, 3.10%, 04/15/31			5,230		5,229,479
Series2019-1A, Class C, 3.34%, 04/15/31			4,930		4,928,852
Series2019-1A, Class D, 3.78%, 04/15/31			6,630		6,627,879
CIFC Funding Ltd.(a)(b):
Series2014-4RA, Class A1A, (LIBOR USD 3 Month + 1.13%), 3.90%, 10/17/30			29,185		29,079,984
Series2015-2A, Class AR, (LIBOR USD 3 Month + 0.78%), 3.57%, 04/15/27			27,350		27,244,489
Citibank Credit Card Issuance Trust:
Series2014-A5, Class A5, 2.68%, 06/07/23			12,290		12,325,363
Series2018-A1, Class A1, 2.49%, 01/20/23			44,763		44,698,260
CNH Equipment Trust, Series2016-B, Class A3, 1.63%, 08/15/21			7,889		7,849,318
Credit Acceptance Auto Loan Trust(b):
Series2016-2A, Class A, 2.42%, 11/15/23			1,197		1,196,768
Series2017-1A, Class A, 2.56%, 10/15/25			16,115		16,090,425
Series2018-1A, Class A, 3.01%, 02/16/27			24,197		24,215,438
Series2018-2A, Class A, 3.47%, 05/17/27			35,490		35,760,778
Series2019-1A, Class A, 3.33%, 02/15/28			25,440		25,608,008
Discover Card Execution Note Trust:
Series2016-A3, Class A3, 1.85%, 10/16/23			14,660		14,461,253
Series2019-A1, Class A1, 3.04%, 07/15/24			24,120		24,443,840
Drive Auto Receivables Trust:
Series2018-2, Class A3, 2.88%, 06/15/21			14,343		14,343,728
Series2018-4, Class A3, 3.04%, 11/15/21			3,920		3,922,935
Series2019-2, Class A3, 3.04%, 03/15/23			17,640		17,682,054
Dryden XXV Senior Loan Fund, Series2012-25A, Class ARR, (LIBOR USD 3 Month + 0.90%), 3.69%, 10/15/27(a)(b)			30,600		30,462,600
Dryden XXVI Senior Loan Fund, Series2013-26A, Class AR, (LIBOR USD 3 Month + 0.90%), 3.69%, 04/15/29(a)(b)			13,800		13,667,131
Enterprise Fleet Financing LLC(b):
Series2016-2, Class A2, 1.74%, 02/22/22			3,995		3,985,727
Series2016-2, Class A3, 2.04%, 02/22/22			13,010		12,918,045
Series2017-1, Class A2, 2.13%, 07/20/22			2,938		2,928,481
Series2017-1, Class A3, 2.60%, 07/20/22			4,260		4,245,874
Series2018-1, Class A2, 2.87%, 10/20/23			22,269		22,288,580
Series2019-1, Class A2, 2.98%, 10/22/24			20,380		20,379,796
FCI Funding LLC, Series2019-1A, Class A, 3.63%, 02/18/31(b)			17,800		17,796,954
Ford Credit Auto Lease Trust, Series2019-A, Class A2A, 2.84%, 09/15/21			70,100		70,157,938
Ford Credit Auto Owner Trust:
Series2016-B, Class A3, 1.33%, 10/15/20			6,121		6,105,681
Series2016-C, Class A4, 1.40%, 02/15/22			16,152		15,931,976
Series2019-A, Class A3, 2.78%, 09/15/23			4,330		4,350,025

SCHEDULES OF INVESTMENTS 71

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Ford Credit Floorplan Master Owner Trust,Series 2016-3, Class A2, (LIBOR USD 1 Month + 0.62%), 3.10%, 07/15/21(a)	USD		26,285	$	26,316,253
Greystone Commercial Real Estate Notes Ltd., Series 2017-FL1A, Class A, (LIBOR USD 1 Month + 1.55%), 4.03%, 03/15/27(a)(b)			15,800		15,740,358
Halcyon Loan Advisors Funding Ltd., Series2015-2A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.85%, 07/25/27(a)(b)			20,265		20,253,795
Honda Auto Receivables Owner Trust, Series2016-2, Class A3, 1.39%, 04/15/20			3,105		3,099,820
Hyundai Auto Lease Securitization Trust,Series 2019-A, Class A2, 2.92%, 07/15/21(b)			21,410		21,442,817
Lendmark Funding Trust, Series2018-1A, Class A, 3.81%, 12/21/26(b)			18,440		18,682,117
Litigation Fee Residual Funding LLC, Series2015-1, Class A, 4.00%, 10/30/27(c)			9,074		9,036,570
LoanCore Issuer Ltd., Series 2018-CRE1, Class A, (LIBOR USD 1 Month + 1.13%), 3.62%, 05/15/28(a)(b)			12,180		12,176,630
Madison Park Funding XII Ltd., Series2014-12A, Class AR, (LIBOR USD 3 Month + 1.26%), 4.02%, 07/20/26(a)(b)			3,926		3,928,573
Marathon CRE Ltd., Series2018-FL1, Class A, (LIBOR USD 1 Month + 1.15%), 3.63%, 06/15/28(a)(b)			5,690		5,688,587
Mercedes-Benz Master Owner Trust, Series2016-BA, Class A, (LIBOR USD 1 Month + 0.70%), 3.18%, 05/17/21(a)(b)			25,457		25,471,775
Mill City Mortgage Loan Trust, Series2016-1, Class A1, (LIBOR USD 1 Month + 0.00%), 2.50%, 04/25/57(a)(b)			15,456		15,316,802
Navient Private Education Loan Trust,Series 2014-CTA, Class A, (LIBOR USD 1 Month + 0.70%), 3.18%, 09/16/24(a)(b)			426		426,883
Navient Private Education Refi Loan Trust,Series 2019-A, Class A1, 3.03%, 01/15/43(b)			11,580		11,620,572
Navient Student Loan Trust(b):
Series2018-EA, Class A2, 4.00%, 12/15/59			2,872		2,988,070
Series2019-BA, Class A2A, 3.39%, 12/15/59			7,880		7,879,527
New Residential Mortgage Trust, Series2018-1A, Class A1A, 4.00%, 12/25/57(b)(d)			10,289		10,501,725
Nissan Auto Receivables Owner Trust:
Series2016-B, Class A3, 1.32%, 01/15/21			13,347		13,282,195
Series2019-A, Class A4, 3.00%, 09/15/25			6,590		6,673,112
Nissan Master Owner Trust Receivables:
Series2016-A, Class A2, 1.54%, 06/15/21			21,120		21,064,452
Series2017-B, Class A, (LIBOR USD 1 Month + 0.43%), 2.91%, 04/18/22(a)			40,775		40,839,584
Series2017-C, Class A, (LIBOR USD 1 Month + 0.32%), 2.80%, 10/17/22(a)			12,800		12,806,394
Series2019-A, Class A, (LIBOR USD 1 Month + 0.56%), 3.06%, 02/15/24(a)			26,180		26,260,791
NLY Commercial Mortgage Trust, Series2019-FL2, Class A, (LIBOR USD 1 Month + 1.30%), 3.78%, 02/15/36(a)(b)			5,121		5,125,209
OCP CLO Ltd., Series2015-8A, Class A1R, (LIBOR USD 3 Month + 0.85%), 3.62%, 04/17/27(a)(b)			2,500		2,488,979
OFSI Fund VI Ltd., Series2014-6A, Class BR, (LIBOR USD 3 Month + 1.50%), 4.29%, 03/20/25(a)(b)			6,345		6,223,914
OneMain Direct Auto Receivables Trust,Series 2018-1A, Class A, 3.43%, 12/16/24(b)			22,405		22,642,894

Security		Par (000)		Value
Asset-Backed Securities (continued)
Onemain Financial Issuance Trust, Series2018-1A, Class A, 3.30%, 03/14/29(b)	USD		4,835	$	4,857,472
OZLM VIII Ltd., Series2014-8A, Class A1RR, (LIBOR USD 3 Month + 1.17%), 3.63%, 10/17/29(a)(b)			24,210		24,064,740
Palmer Square CLO Ltd.(a)(b):
Series2014-1A, Class A1R2, (LIBOR USD 3 Month + 1.13%), 3.90%, 01/17/31			15,000		14,925,490
Series2019-1A, Class B, (LIBOR USD 3 Month + 2.25%), 0.00%, 04/20/27			3,450		3,450,000
Palmer Square Loan Funding Ltd.(a)(b):
Series2017-1A, Class A1, (LIBOR USD 3 Month + 0.74%), 3.53%, 10/15/25			9,527		9,511,489
Series2018-5A, Class A1, (LIBOR USD 3 Month + 0.85%), 3.32%, 01/20/27			35,000		34,887,237
Parallel Ltd., Series2015-1A, Class AR, (LIBOR USD 3 Month + 0.85%), 3.61%, 07/20/27(a)(b)			13,000		12,926,649
PFS Financing Corp.(b):
Series2016-BA, Class A, 1.87%, 10/15/21			5,130		5,101,454
Series2018-B, Class A, 2.89%, 02/15/23			9,430		9,415,048
Recette CLO Ltd., Series2015-1A, Class AR, (LIBOR USD 3 Month + 0.92%), 3.68%, 10/20/27(a)(b)			10,000		9,952,531
Regatta VI Funding Ltd., Series2016-1A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.84%, 07/20/28(a)(b)			19,235		19,146,196
Regatta VII Funding Ltd., Series2016-1A, Class AR, (LIBOR USD 3 Month + 1.06%), 3.69%, 12/20/28(a)(b)			23,500		23,358,293
Santander Drive Auto Receivables Trust:
Series2018-1, Class A3, 2.32%, 08/16/21			6,500		6,493,867
Series2018-2, Class A3, 2.75%, 09/15/21			22,670		22,666,450
Series2018-3, Class A2A, 2.78%, 03/15/21			9,104		9,101,990
Series2019-1, Class A2A, 2.91%, 01/18/22			23,220		23,230,161
Silver Creek CLO Ltd., Series2014-1A, Class AR, (LIBOR USD 3 Month + 1.24%), 4.00%, 07/20/30(a)(b)			5,000		4,989,205
SLM Private Credit Student Loan Trust(a):
Series2004-A, Class A3, (LIBOR USD 3 Month + 0.40%), 3.01%, 06/15/33			1,875		1,852,613
Series2004-B, Class A3, (LIBOR USD 3 Month + 0.33%), 2.94%, 03/15/24			3,398		3,371,037
SLM Private Education Loan Trust(b):
Series2011-A, Class A3, (LIBOR USD 1 Month + 2.50%), 4.98%, 01/15/43(a)			4,946		4,994,445
Series2011-C, Class A2B, 4.54%, 10/17/44			1,887		1,896,949
Series2012-A, Class A2, 3.83%, 01/17/45			316		316,662
Series2013-B, Class A2A, 1.85%, 06/17/30			842		839,476
Series2014-A, Class A2B, (LIBOR USD 1 Month + 1.15%), 3.63%, 01/15/26(a)			360		360,276
SLM Student Loan Trust, Series2013-4, Class A, (LIBOR USD 1 Month + 0.55%), 3.04%, 06/25/43(a)			6,329		6,298,360
SMB Private Education Loan Trust(b):
Series2015-A, Class A2A, 2.49%, 06/15/27			8,951		8,888,056
Series2016-A, Class A2A, 2.70%, 05/15/31			6,157		6,123,966
Series2016-B, Class A2A, 2.43%, 02/17/32			5,147		5,064,348
Series2018-A, Class A2A, 3.50%, 02/15/36			21,515		21,931,748
Series2018-B, Class A2B, (LIBOR USD 1 Month + 0.72%), 3.20%, 01/15/37(a)			12,360		12,305,806
Series2019-A, Class A2A, 3.44%, 07/15/36			6,210		6,302,813
SoFi Professional Loan Program LLC(b):
Series2015-A, Class A1, (LIBOR USD 1 Month + 1.20%), 3.69%, 03/25/33(a)			3,129		3,143,485
Series2015-D, Class A2, 2.72%, 10/27/36			7,542		7,507,374

72 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series2016-A, Class A2, 2.76%, 12/26/36	USD		3,617	$	3,592,469
Series2016-C, Class A2B, 2.36%, 12/27/32			3,484		3,434,673
Series2016-D, Class A2B, 2.34%, 04/25/33			3,201		3,142,563
Series2016-E, Class A2B, 2.49%, 01/25/36			2,274		2,251,659
Series2017-C, Class A2A, 1.75%, 07/25/40			3,572		3,550,446
Series2018-A, Class A2B, 2.95%, 02/25/42			7,770		7,730,626
Series2018-D, Class A1FX, 3.12%, 02/25/48			7,540		7,560,761
Series2019-A, Class A2FX, 3.69%, 06/15/48			6,180		6,350,901
Series2019-B, Class A2FX, 3.09%, 08/17/48			4,610		4,609,740
SoFi Professional Loan Program Trust,Series 2018-C, Class A2FX, 3.59%, 01/25/48(b)			5,315		5,423,407
Soundview Home Loan Trust, Series2003-2, Class A2, (LIBOR USD 1 Month + 1.30%), 3.79%, 11/25/33(a)			395		400,085
Springleaf Funding Trust(b):
Series2015-AA, Class A, 3.16%, 11/15/24			1,255		1,254,881
Series2015-BA, Class A, 3.48%, 05/15/28			5,363		5,397,745
Series2017-AA, Class A, 2.68%, 07/15/30			8,215		8,149,549
TICP CLO I Ltd., Series2015-1A, Class AR, (LIBOR USD 3 Month + 0.80%), 3.56%, 07/20/27(a)(b)			8,135		8,086,559
Towd Point Mortgage Trust(b)(d):
Series2016-3, Class A1, 2.25%, 04/25/56			9,454		9,301,217
Series2016-4, Class A1, 2.25%, 07/25/56			12,985		12,728,557
Toyota Auto Receivables Owner Trust:
Series2016-B, Class A3, 1.30%, 04/15/20			1,560		1,557,486
Series2018-B, Class A3, 2.96%, 09/15/22			5,745		5,787,587
Treman Park CLO Ltd., Series2015-1A, Class ARR, (LIBOR USD 3 Month + 1.07%), 3.83%, 10/20/28(a)(b)			50,000		49,915,830
Tryon Park CLO Ltd., Series2013-1A, Class A1SR, (LIBOR USD 3 Month + 0.89%), 3.68%, 04/15/29(a)(b)			5,070		5,029,850
Voya CLO Ltd., Series2014-3A, Class A1R, (LIBOR USD 3 Month + 0.72%), 3.49%, 07/25/26(a)(b)			9,775		9,742,976
Wheels SPV 2 LLC(b):
Series2016-1A, Class A2, 1.59%, 05/20/25			134		133,871
Series2017-1A, Class A2, 1.88%, 04/20/26			1,798		1,787,704
Total Asset-Backed Securities — 28.8% (Cost: $1,850,519,714)					1,850,181,972
Corporate Bonds — 34.3%
Aerospace & Defense — 0.9%
Northrop Grumman Corp., 3.25%, 01/15/28			18,520		18,210,751
Rockwell Collins, Inc., 2.80%, 03/15/22			3,693		3,683,966
United Technologies Corp.:
3.35%, 08/16/21			9,620		9,748,690
3.65%, 08/16/23			24,690		25,343,365
					56,986,772
Airlines — 0.4%
American Airlines Pass-Through Trust, Series2013-2, Class B, 5.60%, 07/15/20(b)			3,862		3,920,016
Continental Airlines Pass-Through Trust,Series 2000-1, Class B, 8.39%, 11/01/20			2		1,918
Delta Air Lines Pass-Through Trust, Series2012-1, Class B, 6.88%, 05/07/19(b)			1,705		1,710,545
Delta Air Lines, Inc.:
2.88%, 03/13/20			6,535		6,523,039
2.60%, 12/04/20			6,980		6,918,713
Northwest Airlines Pass-Through Trust,Series 2002-1,Class G-2, 6.26%, 11/20/21			429		440,179
US Airways Pass-Through Trust, Series2012-1, Class B, 8.00%, 10/01/19			4,261		4,337,954

Security		Par (000)		Value
Airlines (continued)
Virgin Australia Pass-Through Trust(b):
Series2013-1, Class B, 6.00%, 10/23/20	USD		2,325	$	2,364,546
Series2013-1A, Class A, 5.00%, 10/23/23			2,120		2,165,908
					28,382,818
Auto Components — 0.1%
ZF North America Capital, Inc.(b):
4.00%, 04/29/20			5,894		5,897,084
4.50%, 04/29/22			2,431		2,425,111
					8,322,195
Automobiles — 0.8%(b)
Daimler Finance North America LLC:
1.50%, 07/05/19			10,665		10,629,425
2.70%, 08/03/20			5,625		5,604,805
Hyundai Capital America:
1.75%, 09/27/19			4,460		4,429,226
2.55%, 04/03/20			4,680		4,647,451
Nissan Motor Acceptance Corp.:
2.25%, 01/13/20			12,670		12,596,966
2.13%, 03/03/20			9,045		8,960,331
Volkswagen Group of America Finance LLC, 2.40%, 05/22/20			6,500		6,454,133
					53,322,337
Banks — 8.6%
Bancolombia SA, 5.95%, 06/03/21			11,615		12,242,210
Bank of America Corp.:
(LIBOR USD 3 Month + 0.66%), 2.37%, 07/21/21(a)			12,225		12,141,634
(LIBOR USD 3 Month + 0.37%), 2.74%, 01/23/22(a)			3,500		3,486,426
2.50%, 10/21/22			13,800		13,625,224
3.30%, 01/11/23			27,815		28,168,135
(LIBOR USD 3 Month + 1.02%), 2.88%, 04/24/23(a)			5,690		5,672,595
Bank of America NA, (LIBOR USD 3 Month + 0.65%), 3.34%, 01/25/23(a)			1,740		1,761,747
Barclays Bank plc, 2.65%, 01/11/21			6,000		5,952,792
Barclays plc, (LIBOR USD 3 Month + 1.40%), 4.61%, 02/15/23(a)			6,970		7,113,763
BB&T Corp., 3.20%, 09/03/21			6,085		6,152,263
Capital One NA:
1.85%, 09/13/19			4,020		4,001,809
2.35%, 01/31/20			7,215		7,178,718
Citigroup, Inc.:
2.75%, 04/25/22			2,760		2,748,380
(LIBOR USD 3 Month + 0.72%), 3.14%, 01/24/23(a)			500		501,727
Citizens Bank NA:
2.25%, 03/02/20			5,665		5,638,601
2.20%, 05/26/20			7,192		7,137,016
2.25%, 10/30/20			21,055		20,875,212
2.55%, 05/13/21			17,131		17,009,545
3.25%, 02/14/22			4,825		4,869,527
Commonwealth Bank of Australia, 2.05%, 09/18/20(b)			4,575		4,526,775
Credit Suisse Group Funding Guernsey Ltd., 3.13%, 12/10/20			23,300		23,359,247
Discover Bank, 3.35%, 02/06/23			5,225		5,253,238
Fifth Third Bancorp, 2.60%, 06/15/22			2,700		2,681,859
HSBC Holdings plc, (LIBOR USD 3 Month + 1.06%), 3.26%, 03/13/23(a)			16,480		16,520,294

SCHEDULES OF INVESTMENTS 73

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
Huntington National Bank (The):
2.38%, 03/10/20	USD		8,680	$	8,649,867
2.88%, 08/20/20			11,820		11,838,316
3.13%, 04/01/22			4,255		4,286,863
ING Groep NV, 4.10%, 10/02/23			8,265		8,495,012
JPMorgan Chase & Co.:
2.75%, 06/23/20			7,000		7,003,615
2.55%, 03/01/21			6,000		5,980,104
(LIBOR USD 3 Month + 0.61%), 3.22%, 06/18/22(a)			13,095		13,079,952
2.97%, 01/15/23			2,140		2,139,106
(LIBOR USD 3 Month + 0.94%), 2.78%, 04/25/23(a)			12,940		12,864,183
(LIBOR USD 3 Month + 0.73%), 3.56%, 04/23/24(a)			5,865		5,965,064
(LIBOR USD 3 Month + 0.89%), 3.80%, 07/23/24(a)			11,000		11,294,689
KeyBank NA, 2.25%, 03/16/20			9,420		9,377,889
Mitsubishi UFJ Financial Group, Inc.:
2.95%, 03/01/21			11,887		11,907,336
3.54%, 07/26/21			2,005		2,034,411
3.22%, 03/07/22			11,470		11,561,490
Nordea Bank Abp, 2.25%, 05/27/21(b)			6,425		6,339,746
Royal Bank of Scotland Group plc, 3.88%, 09/12/23			8,585		8,620,582
Santander Holdings USA, Inc.:
4.45%, 12/03/21			16,970		17,484,869
3.70%, 03/28/22			5,480		5,545,149
3.40%, 01/18/23			860		859,517
Santander UK Group Holdings plc:
3.57%, 01/10/23			1,715		1,711,530
(LIBOR USD 3 Month + 1.08%), 3.37%, 01/05/24(a)			3,715		3,640,819
Santander UK plc, 5.00%, 11/07/23(b)			15,318		15,685,111
Sumitomo Mitsui Financial Group, Inc., 2.85%, 01/11/22			15,220		15,233,232
SunTrust Banks, Inc.:
(LIBOR USD 3 Month + 0.50%), 3.53%, 10/26/21(a)			19,125		19,323,997
2.70%, 01/27/22			1,655		1,649,692
Svenska Handelsbanken AB, 3.35%, 05/24/21			6,075		6,143,760
UBS Group Funding Switzerland AG(b):
2.65%, 02/01/22			15,085		14,949,783
(LIBOR USD 3 Month + 0.95%), 2.86%, 08/15/23(a)			5,810		5,723,991
Wells Fargo & Co.:
2.50%, 03/04/21			10,000		9,951,524
3.07%, 01/24/23			1,855		1,857,458
3.75%, 01/24/24			8,005		8,237,764
Wells Fargo Bank NA, (LIBOR USD 3 Month + 0.49%), 3.33%, 07/23/21(a)			37,630		37,889,626
Westpac Banking Corp., 3.15%, 01/16/24(b)			28,235		28,734,813
					554,679,597
Beverages — 0.2%
Anheuser-Busch InBev Worldwide, Inc., 4.75%, 01/23/29			6,000		6,392,387
Maple Escrow Subsidiary, Inc., 4.60%, 05/25/28(b)			3,315		3,455,152
					9,847,539
Biotechnology — 0.3%
AbbVie, Inc.:
2.90%, 11/06/22			1,945		1,941,011
3.75%, 11/14/23			17,100		17,554,290
					19,495,301

Security		Par (000)		Value
Capital Markets — 1.6%
Credit Suisse Group AG, 3.57%, 01/09/23(b)	USD		14,810	$	14,860,857
Deutsche Bank AG, 4.25%, 02/04/21			11,560		11,604,316
Goldman Sachs Group, Inc. (The):
2.60%, 04/23/20			11,060		11,028,628
3.00%, 04/26/22			17,400		17,362,261
Moody’s Corp.:
2.75%, 12/15/21			1,135		1,134,864
2.63%, 01/15/23			5,085		5,010,801
Morgan Stanley:
2.75%, 05/19/22			19,750		19,630,623
3.13%, 01/23/23			16,485		16,535,278
(LIBOR USD 3 Month + 0.85%), 3.74%, 04/24/24(a)			8,250		8,414,370
					105,581,998
Chemicals — 0.2%
Dow Chemical Co. (The), 4.25%, 11/15/20			3,426		3,491,089
DowDuPont, Inc., 3.77%, 11/15/20			7,285		7,418,050
					10,909,139
Consumer Finance — 2.0%
AerCap Ireland Capital DAC:
4.25%, 07/01/20			3,540		3,587,712
4.50%, 05/15/21			5,770		5,894,730
3.95%, 02/01/22			7,750		7,850,024
3.50%, 05/26/22			3,605		3,605,821
American Express Co., 2.50%, 08/01/22			11,065		10,935,684
Capital One Financial Corp.:
2.40%, 10/30/20			4,420		4,394,693
3.20%, 01/30/23			10,000		10,012,845
Ford Motor Credit Co. LLC:
1.90%, 08/12/19			3,450		3,435,521
2.60%, 11/04/19			17,070		17,020,545
3.34%, 03/28/22			1,772		1,721,082
4.14%, 02/15/23			9,830		9,625,158
General Motors Financial Co., Inc.:
2.40%, 05/09/19			2,525		2,523,914
3.70%, 11/24/20			7,720		7,783,093
3.20%, 07/06/21			22,310		22,209,828
4.20%, 11/06/21			4,325		4,400,239
3.25%, 01/05/23			6,885		6,750,605
4.15%, 06/19/23			4,600		4,643,139
Harley-Davidson Financial Services, Inc., 2.15%, 02/26/20(b)			4,440		4,400,856
					130,795,489
Containers & Packaging — 0.0%
WRKCo, Inc., 3.75%, 03/15/25			2,210		2,229,770
Diversified Financial Services — 0.9%
AIG Global Funding, 1.95%, 10/18/19(b)			1,255		1,248,593
GE Capital International Funding Co. Unlimited Co., 2.34%, 11/15/20			12,625		12,468,574
JPMorgan Chase Bank NA(a):
(LIBOR USD 3 Month + 0.28%), 2.60%, 02/01/21			4,710		4,698,960
(LIBOR USD 3 Month + 0.35%), 3.09%, 04/26/21			36,790		36,860,603
					55,276,730
Diversified Telecommunication Services — 0.7%
AT&T, Inc.:
3.80%, 03/15/22			27,450		28,150,835
3.60%, 02/17/23			8,880		9,051,693
Verizon Communications, Inc.:
5.15%, 09/15/23			4,155		4,567,205
3.88%, 02/08/29			2,965		3,035,963
					44,805,696

74 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Electric Utilities — 0.9%
Alliant Energy Finance LLC, 3.75%, 06/15/23(b)	USD		8,085	$	8,245,449
American Electric Power Co., Inc.:
2.15%, 11/13/20			10,525		10,426,311
3.65%, 12/01/21			5,295		5,401,498
2.95%, 12/15/22			4,155		4,161,471
Duke Energy Corp., 3.95%, 10/15/23			8,435		8,743,591
Emera US Finance LP, 2.15%, 06/15/19			4,965		4,955,253
Exelon Corp., 2.45%, 04/15/21			4,890		4,833,262
FirstEnergy Corp., Series A, 2.85%, 07/15/22			4,346		4,315,476
ITC Holdings Corp., 2.70%, 11/15/22			2,180		2,140,639
Virginia Electric & Power Co.:
5.00%, 06/30/19			3,320		3,335,741
Series C, 2.75%, 03/15/23			3,000		2,993,809
					59,552,500
Electronic Equipment, Instruments & Components — 0.1%
Amphenol Corp., 2.20%, 04/01/20			6,520		6,478,529
Energy Equipment & Services — 0.1%
Baker Hughes a GE Co. LLC, 2.77%, 12/15/22			6,130		6,090,045
Equity Real Estate Investment Trusts (REITs) — 0.2%
American Tower Corp., 3.50%, 01/31/23			3,070		3,112,136
Crown Castle International Corp.:
3.20%, 09/01/24			3,205		3,180,503
4.30%, 02/15/29			3,000		3,092,109
Nationwide Health Properties, Inc., 6.59%, 07/07/38			1,400		1,690,782
					11,075,530
Food & Staples Retailing — 0.2%
Walgreen Co., 3.10%, 09/15/22			5,780		5,817,632
Walgreens Boots Alliance, Inc., 3.30%, 11/18/21			4,035		4,080,673
					9,898,305
Food Products — 0.8%
Conagra Brands, Inc., (LIBOR USD 3 Month + 0.75%), 3.51%, 10/22/20(a)			12,485		12,469,856
General Mills, Inc.:
(LIBOR USD 3 Month + 0.54%), 3.32%, 04/16/21(a)			11,675		11,653,156
3.70%, 10/17/23			2,275		2,331,833
Kraft Heinz Foods Co., 3.50%, 06/06/22			5,816		5,879,449
Mars, Inc., 2.70%, 04/01/25(b)			12,000		11,942,230
Wm Wrigley Jr Co., 3.38%, 10/21/20(b)			8,820		8,907,553
					53,184,077
Health Care Equipment & Supplies — 0.7%
Abbott Laboratories, 2.90%, 11/30/21			14,335		14,394,976
Becton Dickinson and Co.:
2.68%, 12/15/19			25,000		24,919,283
2.40%, 06/05/20			6,145		6,100,973
					45,415,232
Health Care Providers & Services — 0.5%
Anthem, Inc., 3.13%, 05/15/22			2,685		2,707,166
Cigna Corp., 3.20%, 09/17/20(b)			15,000		15,080,856
CVS Health Corp.:
3.70%, 03/09/23			2,920		2,966,955
4.30%, 03/25/28			12,750		12,918,956
					33,673,933
Hotels, Restaurants & Leisure — 0.1%
Carnival Corp., 3.95%, 10/15/20			4,525		4,607,929
Marriott International, Inc., 2.88%, 03/01/21			2,620		2,615,586
					7,223,515

Security		Par (000)		Value
Independent Power and Renewable Electricity Producers — 0.1%
Exelon Generation Co. LLC, 5.20%, 10/01/19	USD		4,600	$	4,651,083
Insurance — 0.7%
American International Group, Inc.:
3.38%, 08/15/20			3,952		3,991,647
6.40%, 12/15/20			1,965		2,077,977
Aon plc, 2.80%, 03/15/21			3,789		3,781,012
AXIS Specialty Finance plc, 2.65%, 04/01/19			13,545		13,545,000
Hartford Financial Services Group, Inc. (The), 5.13%, 04/15/22			4,423		4,719,164
Marsh & McLennan Cos., Inc., 2.35%, 03/06/20			7,145		7,121,301
Pricoa Global Funding I, 2.45%, 09/21/22(b)			4,090		4,043,066
Willis North America, Inc., 3.60%, 05/15/24			3,827		3,851,404
Willis Towers Watson plc, 5.75%, 03/15/21			2,206		2,309,848
					45,440,419
Interactive Media & Services — 0.3%
Baidu, Inc.:
2.75%, 06/09/19			10,000		9,998,750
2.88%, 07/06/22			8,205		8,094,356
					18,093,106
IT Services — 0.1%
Total System Services, Inc., 3.75%, 06/01/23			4,640		4,710,303
Media — 1.6%
Charter Communications Operating LLC:
3.58%, 07/23/20			13,200		13,295,957
4.46%, 07/23/22			11,709		12,114,264
4.50%, 02/01/24			10,080		10,484,311
Comcast Corp.:
3.15%, 02/15/28			8,710		8,522,873
4.15%, 10/15/28			2,895		3,047,097
Cox Communications, Inc., 3.15%, 08/15/24(b)			8,155		8,117,980
Discovery Communications LLC:
4.38%, 06/15/21			3,695		3,796,105
3.30%, 05/15/22			10,000		10,044,453
Interpublic Group of Cos., Inc. (The):
3.50%, 10/01/20			4,490		4,528,701
3.75%, 10/01/21			1,545		1,571,850
Sky Ltd., 2.63%, 09/16/19(b)			22,885		22,845,171
Time Warner Cable LLC, 8.25%, 04/01/19			1,845		1,845,000
					100,213,762
Metals & Mining — 0.0%
Anglo American Capital plc, 4.13%, 04/15/21(b)			2,221		2,242,322
Multi-Utilities — 0.7%
CenterPoint Energy, Inc.:
3.60%, 11/01/21			4,355		4,419,415
2.50%, 09/01/22			5,150		5,025,909
Dominion Energy, Inc., 2.56%, 07/01/20			2,525		2,511,052
DTE Energy Co., Series D, 3.70%, 08/01/23			4,690		4,801,283
Sempra Energy:
1.63%, 10/07/19			7,405		7,352,312
(LIBOR USD 3 Month + 0.50%), 3.29%, 01/15/21(a)			6,185		6,132,978
WEC Energy Group, Inc., 3.38%, 06/15/21			12,505		12,652,726
					42,895,675
Oil, Gas & Consumable Fuels — 3.3%
Andeavor Logistics LP:
6.25%, 10/15/22			2,658		2,731,095
3.50%, 12/01/22			4,885		4,934,336
Apache Corp.:
3.63%, 02/01/21			1,361		1,376,688
3.25%, 04/15/22			4,456		4,459,515

SCHEDULES OF INVESTMENTS 75

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Concho Resources, Inc., 4.38%, 01/15/25	USD		15,400	$	15,830,153
Continental Resources, Inc., 4.50%, 04/15/23			14,859		15,381,764
Devon Energy Corp., 3.25%, 05/15/22			9,480		9,570,267
Enbridge Energy Partners LP, 5.20%, 03/15/20			5,330		5,445,359
Enbridge, Inc., 2.90%, 07/15/22			530		528,456
Encana Corp., 3.90%, 11/15/21			15,336		15,613,734
Energy Transfer Operating LP:
4.15%, 10/01/20			21,449		21,794,443
3.60%, 02/01/23			2,900		2,924,195
4.50%, 04/15/24			1,433		1,494,113
Enterprise Products Operating LLC, 4.15%, 10/16/28			2,715		2,853,132
EOG Resources, Inc., 2.45%, 04/01/20			5,680		5,656,726
Kinder Morgan, Inc.:
5.00%, 02/15/21(b)			7,000		7,233,836
4.30%, 03/01/28			7,870		8,129,693
MPLX LP, 4.80%, 02/15/29			4,340		4,568,643
Newfield Exploration Co., 5.75%, 01/30/22			27,510		29,356,196
Pioneer Natural Resources Co., 3.45%, 01/15/21			6,340		6,398,315
Sabine Pass Liquefaction LLC, 5.75%, 05/15/24			2,747		3,027,277
Spectra Energy Partners LP, 4.75%, 03/15/24			1,710		1,818,052
Sunoco Logistics Partners Operations LP, 5.50%, 02/15/20			3,000		3,051,023
Sunoco LP, 4.88%, 01/15/23			860		873,674
Texas Eastern Transmission LP, 2.80%, 10/15/22(b)			5,740		5,656,032
TransCanada PipeLines Ltd., 3.75%, 10/16/23			1,580		1,627,609
Williams Cos., Inc. (The):
5.25%, 03/15/20			8,168		8,341,342
4.00%, 11/15/21			4,650		4,772,356
3.60%, 03/15/22			3,340		3,388,932
3.70%, 01/15/23			7,000		7,126,233
4.55%, 06/24/24			6,305		6,655,508
					212,618,697
Pharmaceuticals — 1.8%
Allergan Finance LLC, 3.25%, 10/01/22			6,133		6,133,033
Allergan Funding SCS, 3.45%, 03/15/22			46,113		46,528,251
Bayer US Finance LLC, 2.38%, 10/08/19(b)			5,435		5,417,004
Shire Acquisitions Investments Ireland DAC, 1.90%, 09/23/19			42,468		42,284,540
Takeda Pharmaceutical Co. Ltd.(b):
3.80%, 11/26/20			4,355		4,418,166
5.00%, 11/26/28			11,520		12,488,332
					117,269,326
Real Estate Management & Development — 0.1%
Unique Pub Finance Co. plc (The):
Series A3, 6.54%, 03/30/21	GBP		1,863		2,543,507
Series M, 7.40%, 03/28/24			4,920		7,016,242
					9,559,749
Road & Rail — 1.1%
CSX Corp., 3.70%, 10/30/20	USD		5,920		5,995,930
Penske Truck Leasing Co. LP(b):
3.05%, 01/09/20			20,121		20,122,206
3.30%, 04/01/21			7,930		7,959,675
3.38%, 02/01/22			4,759		4,777,559
4.25%, 01/17/23			3,235		3,341,754
2.70%, 03/14/23			5,501		5,375,261
Ryder System, Inc.:
2.65%, 03/02/20			5,675		5,665,815
2.88%, 09/01/20			2,250		2,252,171
3.75%, 06/09/23			4,735		4,847,833

Security		Par (000)		Value
Road & Rail (continued)
Union Pacific Corp.:
2.95%, 03/01/22	USD		4,345	$	4,379,482
2.95%, 01/15/23			3,865		3,874,749
					68,592,435
Semiconductors & Semiconductor Equipment — 1.7%
Analog Devices, Inc., 2.85%, 03/12/20			2,115		2,115,680
Broadcom Corp., 2.38%, 01/15/20			12,455		12,388,369
Broadcom, Inc.(b):
3.13%, 04/15/21			8,380		8,370,112
3.63%, 10/15/24			13,000		12,898,340
Lam Research Corp., 2.80%, 06/15/21			15,230		15,232,174
NXP BV(b):
4.13%, 06/15/20			14,930		15,118,267
4.13%, 06/01/21			22,520		22,952,384
4.63%, 06/15/22			3,820		3,952,172
3.88%, 09/01/22			10,404		10,551,009
QUALCOMM, Inc., 2.60%, 01/30/23			3,065		3,029,081
					106,607,588
Software — 0.1%
CA, Inc., 3.60%, 08/15/22			3,655		3,680,804
Technology Hardware, Storage & Peripherals — 0.8%
Dell International LLC(b):
4.42%, 06/15/21			1,385		1,420,955
5.45%, 06/15/23			24,470		26,083,497
Hewlett Packard Enterprise Co., 3.60%, 10/15/20			8,000		8,069,772
NetApp, Inc., 2.00%, 09/27/19			7,825		7,792,223
Xerox Corp., 3.50%, 08/20/20			8,620		8,576,900
					51,943,347
Tobacco — 0.9%
Altria Group, Inc., 3.49%, 02/14/22			3,270		3,321,320
BAT Capital Corp., 2.76%, 08/15/22			40,765		40,089,701
BAT International Finance plc, 3.25%, 06/07/22(b)			545		544,496
Reynolds American, Inc.:
6.88%, 05/01/20			7,889		8,209,087
3.25%, 06/12/20			6,460		6,469,212
					58,633,816
Trading Companies & Distributors — 0.5%
Air Lease Corp., 2.63%, 07/01/22			8,375		8,179,962
Aviation Capital Group LLC, 2.88%, 01/20/22(b)			7,310		7,198,767
International Lease Finance Corp.:
5.88%, 04/01/19			11,255		11,255,000
4.63%, 04/15/21			5,702		5,834,169
					32,467,898
Wireless Telecommunication Services — 0.2%
Sprint Spectrum Co. LLC(b):
3.36%, 09/20/21			1,966		1,965,035
4.74%, 03/20/25			8,110		8,201,238
					10,166,273
Total Corporate Bonds — 34.3% (Cost: $2,187,577,318)					2,203,013,650
Foreign Agency Obligations — 0.1%
Chile — 0.1%
Empresa Nacional del Petroleo, 5.25%, 08/10/20(b)			6,150		6,272,662
Total Foreign Agency Obligations — 0.1% (Cost: $6,253,720)					6,272,662

76 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Foreign Government Obligations — 1.5%
Brazil — 0.2%
Centrais Eletricas Brasileiras SA, 5.75%, 10/27/21(b)	USD		11,000	$	11,275,000
Canada — 0.5%
Province of Alberta Canada, 3.35%, 11/01/23			7,477		7,717,979
Province of Ontario Canada, 3.40%, 10/17/23			25,250		26,130,302
					33,848,281
Cyprus — 0.3%
Republic of Cyprus:
4.75%, 06/25/19	EUR		9,815		11,124,260
4.63%, 02/03/20(b)			8,454		9,842,999
					20,967,259
Italy — 0.5%
Republic of Italy, 0.10%, 04/15/19			25,800		28,938,429
Total Foreign Government Obligations — 1.5% (Cost: $96,789,482)					95,028,969
		Shares
Investment Companies — 2.5%
iShares Short Maturity Bond ETF(i)			3,180,000		159,763,200
Total Investment Companies — 2.5% (Cost: $159,438,280)					159,763,200
		Par (000)
Municipal Bonds — 0.3%
South Carolina Public Service Authority;
Series 2016D, RB, 2.39%, 12/01/23	USD		13,915		13,473,755
Series 2012E, RB, 3.72%, 12/01/23			8,400		8,568,756
Total Municipal Bonds — 0.3% (Cost: $21,296,419)					22,042,511
Non-Agency Mortgage-Backed Securities — 14.5%
Collateralized Mortgage Obligations — 2.0%
Apollo Trust, Series2009-1, Class A3, 3.13%, 10/03/40(d)	AUD		315		223,702
Banc of America Mortgage Trust, Series2003-J, Class 2A1, 4.65%, 11/25/33(d)	USD		417		418,850
Bear Stearns ARM Trust, Series2004-5, Class 2A, 4.39%, 07/25/34(d)			559		555,737
BlackRock Capital Finance LP, Series1997-R2, Class AP, 1.52%, 12/25/35(b)(d)(i)			19		16,488
CHL Mortgage Pass-Through Trust:
Series2004-29, Class 1A1, 3.03%, 02/25/35(d)			386		366,970
Series2005-17, Class 1A6, 5.50%, 09/25/35			942		930,182
Series 2005-HYB8, Class 2A1, 4.18%, 12/20/35(d)			1,041		908,520
First Horizon Mortgage Pass-Through Trust,Series 2004-AR7, Class 1A1, 5.05%, 02/25/35(d)			151		152,177
Gosforth Funding plc, Series2018-1A, Class A1, 3.10%, 08/25/60(b)(d)			12,818		12,795,582
JPMorgan Mortgage Trust(b)(d):
Series2016-2, Class A1, 2.80%, 06/25/46			15,378		15,303,767
Series2017-1, Class A4, 3.50%, 01/25/47			15,732		15,721,953
Series2017-3, Class 1A6, 3.00%, 08/25/47			12,871		12,527,707
Series2017-6, Class A6, 3.00%, 12/25/48			8,044		7,917,093
Lanark Master Issuer plc, Series2019-1A, Class 1A1, 3.46%, 12/22/69(a)(b)			9,580		9,604,496
MortgageIT Trust, Series2004-1, Class A1, 3.27%, 11/25/34(d)			1,139		1,116,184

Security		Par (000)		Value
Collateralized Mortgage Obligations (continued)
National RMBS Trust, Series2012-2, Class A1, 2.93%, 06/20/44(d)	AUD		1,068	$	760,664
New Residential Mortgage Loan Trust,Series 2016-3A, Class A1B, 3.25%, 09/25/56(b)(d)	USD		3,177		3,166,945
Permanent Master Issuer plc, Series2018-1A, Class 1A1, 3.17%, 07/15/58(b)(d)			16,640		16,583,874
Seasoned Credit Risk Transfer Trust, Series2018-2, Class MA, 3.50%, 11/25/57			11,315		11,469,390
Sequoia Mortgage Trust(b)(d):
Series2017-CH1, Class A2, 3.50%, 08/25/47			10,404		10,387,604
Series2017-CH2, Class A10, 4.00%, 12/25/47			5,139		5,186,136
Structured Adjustable Rate Mortgage Loan Trust, Series2004-13, Class A2, 0.49%, 09/25/34(d)			863		803,873
TORRENS Trust, Series2013-1, Class A, 2.80%, 04/12/44(d)	AUD		5,877		4,162,818
Walsh Acceptance, Series1997-2, Class A, 4.50%, 03/01/27(b)(d)	USD		5		2,771
					131,083,483
Commercial Mortgage-Backed Securities — 12.4%
Aventura Mall Trust, Series2013-AVM, Class A, 3.74%, 12/05/32(b)(d)			16,080		16,263,733
BAMLL Commercial Mortgage Securities Trust(b):
Series 2012-PARK, Class A, 2.96%, 12/10/30			4,175		4,217,750
Series 2018-DSNY, Class A, 3.33%, 09/15/34(d)			12,495		12,432,296
BANK, Series 2019-BN16, Class A2, 3.93%, 02/15/52			12,200		12,707,837
Bear Stearns Commercial Mortgage Securities Trust(d):
Series 2004-PWR4, Class F, 6.00%, 06/11/41(b)			2,500		2,498,520
Series 2005-PW10, Class AJ, 5.59%, 12/11/40			20,154		20,750,969
Series 2005-PW10, Class B, 5.61%, 12/11/40			13,697		13,988,621
BX Commercial Mortgage Trust, Series2018-IND, Class A, 3.23%, 11/15/35(b)(d)			4,907		4,894,320
Caesars Palace Las Vegas Trust, Series 2017-VICI, Class A, 3.53%, 10/15/34(b)			12,989		13,252,233
CGDBB Commercial Mortgage Trust,Series 2017-BIOC, Class A, 3.27%, 07/15/32(b)(d)			5,940		5,940,007
Citigroup Commercial Mortgage Trust:
Series2012-GC8, Class A4, 3.02%, 09/10/45			15,000		15,128,878
Series 2013-375P, Class A, 3.25%, 05/10/35(b)			9,460		9,571,170
Series 2013-GC11, Class A3, 2.82%, 04/10/46			27,635		27,673,960
CLNS Trust, Series 2017-IKPR, Class A, 3.29%, 06/11/32(b)(d)			21,360		21,306,179
Commercial Mortgage Trust:
Series2012-CR1, Class A3, 3.39%, 05/15/45			9,571		9,662,703
Series 2013-CR10, Class ASB, 3.80%, 08/10/46			2,961		3,026,140
Series 2013-CR12, Class A4, 4.05%, 10/10/46			15,633		16,333,851
Series 2013-CR13, Class A4, 4.19%, 11/10/46(d)			4,515		4,758,666
Series 2014-CR15, Class ASB, 3.60%, 02/10/47			5,890		6,001,508
Series 2014-UBS3, Class ASB, 3.37%, 06/10/47			20,140		20,421,412
Series 2014-UBS5, Class ASB, 3.55%, 09/10/47			7,340		7,491,405
Series 2014-UBS6, Class ASB, 3.39%, 12/10/47			1,800		1,828,533
Series 2015-CR22, Class A3, 3.21%, 03/10/48			28,180		28,538,692
Series 2015-CR23, Class A2, 2.85%, 05/10/48			16,620		16,589,032
Series 2015-CR24, Class ASB, 3.45%, 08/10/48			7,580		7,732,964

SCHEDULES OF INVESTMENTS 77

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2015-LC21, Class A2, 2.98%, 07/10/48	USD		31,707	$	31,674,317
Series 2015-LC21, Class ASB, 3.42%, 07/10/48			9,600		9,798,666
Core Industrial Trust, Series 2015-CALW, Class A, 3.04%, 02/10/34(b)			22,521		22,669,275
CSAIL Commercial Mortgage Trust, Series2015-C1, Class ASB, 3.35%, 04/15/50			13,700		13,925,405
Exantas Capital Corp. Ltd., Series 2018-RSO6, Class A, 3.31%, 06/15/35(b)(d)			8,960		8,927,209
Four Times Square Trust Commercial Mortgage Pass-Through Certificates, Series2006-4TS, Class A, 5.40%, 12/13/28(b)			8,421		8,725,149
GAHR Commercial Mortgage Trust,Series 2015-NRF, Class AFX, 3.23%, 12/15/34(b)			10,000		9,983,071
Great Wolf Trust, Series 2017-WOLF, Class A, 3.48%, 09/15/34(b)(d)			5,980		5,965,036
GS Mortgage Securities Corp. Trust(b):
Series 2012-ALOH, Class A, 3.55%, 04/10/34			17,000		17,315,110
Series 2018-FBLU, Class A, 3.43%, 11/15/35(d)			12,230		12,207,613
GS Mortgage Securities Trust:
Series2011-GC5, Class AS, 5.21%, 08/10/44(b)(d)			8,891		9,297,276
Series2012-GC6, Class A3, 3.48%, 01/10/45			11,008		11,163,106
Series 2013-GC13, Class AAB, 3.72%, 07/10/46(d)			7,098		7,221,744
Series 2014-GC24, Class AAB, 3.65%, 09/10/47			9,620		9,843,197
Series 2019-GC38, Class A2, 3.87%, 02/10/52			8,134		8,485,677
Hospitality Mortgage Trust, Series2017-HIT, Class A, 3.34%, 05/08/30(b)(d)			9,230		9,218,372
JPMBB Commercial Mortgage Securities Trust, Series2014-C23, Class ASB, 3.66%, 09/15/47			6,780		6,949,424
JPMorgan Chase Commercial Mortgage Securities Trust:
Series2003-CB7, Class F, 5.35%, 01/12/38(b)(d)			1,897		1,913,003
Series 2007-CB18, Class AMFL, 2.67%, 06/12/47(d)			23		22,636
Series 2012-HSBC, Class A, 3.09%, 07/05/32(b)			9,870		9,958,545
Series2018-WPT, Class AFX, 4.25%, 07/05/33(b)			7,070		7,434,974
LMREC, Inc., Series 2015-CRE1, Class AR, 3.47%, 02/22/32(b)(d)			3,618		3,602,970
Madison Avenue Trust, Series 2013-650M, Class A, 3.84%, 10/12/32(b)			16,255		16,413,269
Morgan Stanley Bank of America Merrill Lynch Trust:
Series2013-C13, Class A4, 4.04%, 11/15/46			11,900		12,510,664
Series2013-C9, Class AAB, 2.66%, 05/15/46			4,910		4,893,523
Series2014-C18, Class ASB, 3.62%, 10/15/47			9,900		10,121,817
Series2014-C19, Class A2, 3.10%, 12/15/47			5,600		5,599,624
Series2014-C19, Class ASB, 3.33%, 12/15/47			7,950		8,067,492
Series2015-C23, Class A2, 2.98%, 07/15/50			25,100		25,045,942
Morgan Stanley Capital I Trust:
Series2007-T27, Class AJ, 5.95%, 06/11/42(d)			5,416		5,716,858
Series2012-C4, Class A4, 3.24%, 03/15/45			12,941		13,065,593
Series2014-CPT, Class A, 3.35%, 07/13/29(b)			9,000		9,113,697
Series2014-MP, Class A, 3.47%, 08/11/33(b)			4,215		4,276,377
Series2018-BOP, Class A, 3.33%, 08/15/33(b)(d)			3,810		3,794,137
Natixis Commercial Mortgage Securities Trust,Series 2018-FL1, Class A, 3.43%, 06/15/35(b)(d)			6,510		6,445,701
RAIT Trust, Series2017-FL7, Class A, 3.43%, 06/15/37(b)(d)			2,429		2,416,681
UBS Commercial Mortgage Trust, Series2012-C1, Class A3, 3.40%, 05/10/45			4,445		4,514,254

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
UBS-Barclays Commercial Mortgage Trust:
Series2013-C5, Class AS, 3.35%, 03/10/46(b)	USD		9,713	$	9,778,849
Series2013-C6, Class ASB, 2.79%, 04/10/46			6,440		6,445,664
VNDO Mortgage Trust, Series 2012-6AVE, Class A, 3.00%, 11/15/30(b)			17,196		17,311,311
Waldorf Astoria Boca Raton Trust,Series 2016-BOCA, Class A, 3.83%, 06/15/29(b)(d)			16,745		16,744,555
Wells Fargo Commercial Mortgage Trust:
Series 2014-LC16, Class ASB, 3.48%, 08/15/50			11,680		11,881,164
Series2015-C28, Class ASB, 3.31%, 05/15/48			4,986		5,068,519
Series 2015-LC22, Class ASB, 3.57%, 09/15/58			8,810		9,036,438
WFRBS Commercial Mortgage Trust:
Series2011-C5, Class A4, 3.67%, 11/15/44			13,691		13,925,827
Series2012-C10, Class ASB, 2.45%, 12/15/45			15,465		15,362,175
Series2012-C6, Class A4, 3.44%, 04/15/45			1,970		1,998,047
Series2014-C21, Class ASB, 3.39%, 08/15/47			14,690		14,838,245
Series2014-C21, Class ASBF, 3.04%, 08/15/47(b)(d)			3,800		3,802,593
Series2014-C24, Class ASB, 3.32%, 11/15/47			10,315		10,488,569
					797,990,739
Interest Only Commercial Mortgage-Backed Securities — 0.1%(d)
Commercial Mortgage Trust, Series 2015-CR23, Class XA, 0.95%, 05/10/48			39,701		1,481,714
Core Industrial Trust, Series 2015-TEXW, Class XA, 0.77%, 02/10/34(b)			99,250		1,852,823
					3,334,537
Total Non-Agency Mortgage-Backed Securities — 14.5% (Cost: $941,215,995)					932,408,759
U.S. Government Sponsored Agency Securities — 8.7%
Collateralized Mortgage Obligations — 1.9%
Federal Home Loan Mortgage Corp.:
Series 1165, Class LD, 7.00%, 11/15/21			39		39,492
Series 3710, Class MG, 4.00%, 08/15/25(e)			1,123		1,185,175
Series 3959, Class MA, 4.50%, 11/15/41			2,646		2,800,506
Series 3986, Class M, 4.50%, 09/15/41			3,102		3,256,275
Series 4459, Class BN, 3.00%, 08/15/43			10,485		10,550,272
Series 4569, Class JA, 3.00%, 03/15/42			15,771		15,830,368
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes(a):
Series 2017-DNA2, Class M1, (LIBOR USD 1 Month + 1.20%), 3.69%, 10/25/29			20,650		20,760,246
Series 2017-HQA3, Class M1, (LIBOR USD 1 Month + 0.55%), 3.04%, 04/25/30			1,726		1,722,991
Federal National Mortgage Association:
Series2011-48, Class MG, 4.00%, 06/25/26(e)			1,926		2,020,272
Series2011-84, Class MG, 4.00%, 09/25/26(e)			2,639		2,724,485
Series2014-48, Class AB, 4.00%, 10/25/40			7,877		8,044,245
Federal National Mortgage Association Variable Rate Notes:
Series1997-20, Class FB, 2.89%, 03/25/27(f)			115		114,427
Series2014-C02, Class 1M1, (LIBOR USD 1 Month + 0.95%), 3.44%, 05/25/24(a)			210		209,916
Series2017-C02, Class 2M1, (LIBOR USD 1 Month + 1.15%), 3.64%, 09/25/29(a)			7,551		7,572,316
Series2017-C04, Class 2M1, (LIBOR USD 1 Month + 0.85%), 3.34%, 11/25/29(a)			9,853		9,864,040
Government National Mortgage Association:
Series2013-131, Class PA, 3.50%, 06/16/42			5,971		6,113,367
Series2018-36, Class AM, 3.00%, 07/20/45			28,026		28,216,863
					121,025,256

78 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities — 0.3%
Federal Home Loan Mortgage Corp.:
Series KIR2, Class A1, 2.75%, 03/25/27	USD		8,006	$	8,022,563
Series KJ05, Class A2, 2.16%, 10/25/21			11,543		11,455,447
Series KP03, Class A2, 1.78%, 07/25/19			1,565		1,557,500
					21,035,510
Interest Only Commercial Mortgage-Backed Securities — 0.1%(f)
Federal Home Loan Mortgage Corp. Variable Rate Notes:
Series K718, Class X1, 0.62%, 01/25/22			12,308		178,559
Series KW01, Class X1, 0.97%, 01/25/26			46,627		2,492,442
Federal National Mortgage Association ACES Variable Rate Notes, Series2013-M5, Class X2, 2.21%, 01/25/22			18,308		526,537
Government National Mortgage Association Variable Rate Notes, Series2012-120, 0.78%, 02/16/53			25,988		1,254,163
					4,451,701
Mortgage-Backed Securities — 6.4%
Federal Home Loan Mortgage Corp.:
2.50%, 11/01/27			20,736		20,731,727
3.00%, 04/15/34(g)			41,000		41,395,527
Federal Home Loan Mortgage Corp. Variable Rate Notes, (LIBOR USD 12 Month + 1.63%, 7.95% Cap), 2.95%, 10/01/45(a)			5,798		5,835,834
Federal National Mortgage Association:
2.50%, 12/01/27 - 04/01/32			49,407		49,193,084
2.50%, 04/25/34(g)			119,912		119,196,567
3.00%, 12/01/26 - 04/01/33			80,135		80,963,483
3.00%, 04/25/34(g)			24,300		24,523,467
4.00%, 04/01/26 - 03/01/34			4,823		4,988,201
4.00%, 04/25/34(g)			17,600		18,127,854
4.50%, 04/25/34(g)			10,490		10,662,834
5.00%, 04/01/21			1		547
5.50%, 06/01/20 - 10/01/21			204		208,111
6.50%, 04/01/21			20		20,727
Federal National Mortgage Association Variable Rate Notes(a):
(LIBOR USD 12 Month + 1.59%), 2.87%, 09/01/45			12,300		12,411,387
(LIBOR USD 12 Month + 1.59%), 2.90%, 11/01/45			902		909,068
(LIBOR USD 12 Month + 1.59%), 3.14%, 06/01/45			12,595		12,744,665
(LIBOR USD 12 Month + 1.73%), 3.31%, 09/01/42			8,485		8,627,394
					410,540,477
Total U.S. Government Sponsored Agency Securities — 8.7% (Cost: $555,825,491)					557,052,944
U.S. Treasury Obligations — 11.6%
U.S. Treasury Notes:
1.00%, 11/30/19			118,000		116,893,750
1.75%, 11/30/19			130,000		129,410,938
1.25%, 01/31/20 - 02/29/20			155,000		153,445,508
1.38%, 02/29/20 - 03/31/20			105,000		103,982,617
1.63%, 03/15/20			70,000		69,483,203

Security		Par (000)		Value
U.S. Treasury Obligations (continued)
2.25%, 03/31/20	USD		50,000	$	49,916,016
2.50%, 02/15/22			122,410		123,308,949
Total U.S. Treasury Obligations — 11.6% (Cost: $744,761,856)					746,440,981
Total Long-Term Investments — 102.3% (Cost: $6,563,678,275)					6,572,205,648
Short-Term Securities — 1.6%
		Shares
Money Market Funds — 0.4%(h)
BlackRock Liquidity Funds,T-Fund, Institutional Class, 2.37%(i)			4,745,425		4,745,425
JPMorgan US Treasury Plus Money Market Fund, Agency Class, 2.26%			14,499,444		14,499,444
Total Money Market Funds — 0.4% (Cost: $19,244,869)					19,244,869
Total Repurchase Agreements — 1.2% (Cost: $80,000,000)					80,000,000
Total Short-Term Securities — 1.6% (Cost: $99,244,869)					99,244,869
Total Investments Before TBA Sale Commitments — 103.9% (Cost: $6,662,923,144)					6,671,450,517
		Par (000)
TBA Sale Commitments — (0.5)%
Mortgage-Backed Securities — (0.5)%
Federal National Mortgage Association, 3.00%, 04/25/34(g)	USD		32,426		(32,724,195	)
Total TBA Sale Commitments — (0.5)% (Proceeds: $32,461,228)					(32,724,195	)
Total Investments Net of TBA Sale Commitments — 103.4% (Cost: $6,630,461,916)					6,638,726,322
Liabilities in Excess of Other Assets — (3.4)%					(215,323,649	)
Net Assets — 100.0%				$	6,423,402,673

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

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

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

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

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

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

^(g)  Represents or includes a TBA transaction.

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

SCHEDULES OF INVESTMENTS 79

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio

⁽ⁱ⁾  During the six months ended March 31, 2019, investments in issuers considered to be affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

Affiliated Persons and/or Related Parties	Shares Held at 09/30/18		Shares Purchased		Shares Sold			Shares Held at 03/31/19		Value at 03/31/19		Income		Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class		28,177,471		—		(23,432,046	)(b)		4,745,425	$	4,745,425	$	723,462	$	—	$	1
BlackRock Capital Finance LP, Series1997-R2, Class AP		18,554		—		—			18,554		16,488		1,017		—		36
iShares Short Maturity Bond ETF		1,180,000		2,000,000		—			3,180,000		159,763,200		986,934		—		324,900
iShares Short-Term Corporate Bond ETF*		—		1,300,000		(1,300,000	)		—		—		177,919		337,126		—
										$	164,525,113	$	1,889,332	$	337,126	$	324,937

* No longer held by the Fund as of period end.

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

^(b)  Represents net shares sold.

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

Repurchase Agreements

Repurchase Agreements

Collateral

Counterparty

Coupon Rate

Purchase Date

Maturity Date

Par (000)

At Value (000)

Proceeds Including Interest

Position

Original Par

Position Received, At Value

Mizuho Securities USA LLC

3.15

%(a)

03/29/19

07/03/19

$

80,000

$

80,000

$80,672,214

Corporate/Debt Obligations, 2.78% to 6.90%, due 03/27/33 to 10/25/47

$113,691,335

$91,656,150

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

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
U.S. Treasury 2 Year Note		12,514		06/28/19	$	2,666,655	$	9,499,280
Short Contracts
Euro-Bund		197		06/06/19		36,759		(37,632	)
U.S. Treasury 10 Year Note		836		06/19/19		103,847		(287,659	)
U.S. Treasury 10 Year Ultra Note		746		06/19/19		99,055		(1,306,722	)
U.S. Treasury Long Bond		60		06/19/19		8,979		(270,528	)
U.S. Treasury 5 Year Note		5,941		06/28/19		688,135		(4,670,396	)
								(6,572,937	)
							$	2,926,343

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
AUD	2,059,000	USD	1,459,545	State Street Bank and Trust Co.		04/04/19	$	2,513
USD	1,562,952	AUD	2,188,000	State Street Bank and Trust Co.		04/04/19		9,293
USD	11,052,177	EUR	9,652,000	HSBC Bank plc		04/04/19		223,212
USD	5,910,164	GBP	4,438,000	Barclays Bank plc		04/04/19		129,295
USD	30,464,065	EUR	25,800,000	Nomura International plc		04/15/19		1,491,086
USD	8,797,150	EUR	7,814,000	UBS AG		05/06/19		6,434
USD	5,792,988	GBP	4,438,000	Toronto Dominion Bank		05/07/19		2,471
USD	16,120,000	CAD	21,480,545	Toronto Dominion Bank		06/19/19		14,236
								1,878,540

80 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
EUR	7,814,000	USD	8,773,559	UBS AG		04/04/19	$	(6,720	)
GBP	4,438,000	USD	5,783,424	Toronto Dominion Bank		04/04/19		(2,555	)
USD	1,460,451	AUD	2,059,000	State Street Bank and Trust Co.		05/06/19		(2,518	)
								(11,793	)
	Net Unrealized Appreciation						$	1,866,747

Centrally Cleared Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
CDX.NA.IG.32.V1		1.00	%		Quarterly		06/20/24		USD  36,716	$	(664,205	)	$	(589,680	)	$	(74,525	)

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.31.V3

5.00

%

Quarterly

12/20/23

B+

USD  73,500

$

5,045,089

$

2,889,028

$

2,156,061

^(a)  Using S&P 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.

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund		Effective Date			Termination Date				Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency						Notional Amount (000)
0.45%	Annual	6 month EURIBOR	Semi-Annual		N/A			07/04/19	EUR	120,000	$	(767,586	)	$	—		$	(767,586	)
6 month EURIBOR	Semi-Annual	0.49%	Annual		N/A			07/04/19	EUR	120,000		826,521			1			826,520
2.58%	Semi-Annual	3 month LIBOR	Quarterly		7/3/2019	(a)		03/15/21	USD	323,810		(1,229,610	)		(127,345	)		(1,102,265	)
											$	(1,170,675	)	$	(127,344	)	$	(1,043,331	)

^(a)  Forward Swap.

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%		Quarterly	JPMorgan Chase Bank NA		06/20/20		USD	2,086	$	(14,752	)	$	5,744		$	(20,496	)
United Mexican States		1.00			Quarterly	Bank of America NA		09/20/20		USD	2,086		(15,941	)		9,191			(25,132	)
BAT International Finance plc		1.00			Quarterly	JPMorgan Chase Bank NA		12/20/23		EUR	3,249		(30,371	)		(11,911	)		(18,460	)
BAT International Finance plc		1.00			Quarterly	JPMorgan Chase Bank NA		12/20/23		EUR	3,249		(30,372	)		(1,696	)		(28,676	)
BAT International Finance plc		1.00			Quarterly	JPMorgan Chase Bank NA		12/20/23		EUR	4,874		(45,562	)		(2,532	)		(43,030	)
CBS Corp		1.00			Quarterly	Goldman Sachs Bank USA		06/20/24		USD	10,000		(113,209	)		(76,394	)		(36,815	)
Hess Corp		1.00			Quarterly	BNP Paribas SA		06/20/24		USD	10,000		90,075			186,217			(96,142	)
Hess Corp		1.00			Quarterly	Goldman Sachs International		06/20/24		USD	13,400		120,702			179,748			(59,046	)
Kraft Heinz Foods Co		1.00			Quarterly	BNP Paribas SA		06/20/24		USD	3,441		14,111			64,245			(50,134	)
Kraft Heinz Foods Co		1.00			Quarterly	BNP Paribas SA		06/20/24		USD	689		2,826			12,171			(9,345	)
TWDC Enterprises 18 Corp		1.00			Quarterly	BNP Paribas SA		06/20/24		USD	3,355		(135,776	)		(132,737	)		(3,039	)
												$	(158,269	)	$	232,046		$	(390,315	)

SCHEDULES OF INVESTMENTS 81

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty		Termination Date		Credit Rating (a)	Notional Amount (000) (b)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%		Quarterly		Bank of America NA		06/20/20	BBB+		USD	2,086	$	14,751		$	(6,472	)	$	21,223
United Mexican States		1.00			Quarterly		JPMorgan Chase Bank NA		09/20/20	BBB+		USD	2,086		15,942			(8,179	)		24,121
Altria Group, Inc		1.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	5,299		91,056			48,427			42,629
Altria Group, Inc		1.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	3,532		60,692			41,626			19,066
Altria Group, Inc		1.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	3,532		60,692			32,271			28,421
Boeing Co. (The)		1.00			Quarterly		BNP Paribas SA		12/20/23	A		USD	5,526		137,223			129,285			7,938
Ford Motor Credit Co. LLC		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	1,000		119,933			112,864			7,069
Ford Motor Credit Co. LLC		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	1,388		166,467			159,919			6,548
Ford Motor Credit Co. LLC		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	2,500		299,833			292,989			6,844
Ford Motor Credit Co. LLC		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	1,388		166,467			166,631			(164	)
Ford Motor Credit Co. LLC		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	1,999		239,746			239,091			655
Ford Motor Credit Co. LLC		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	1,389		166,587			166,751			(164	)
General Motors Co		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	1,650		264,186			250,432			13,754
General Motors Co		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	2,080		333,034			323,121			9,913
General Motors Co		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	2,080		333,034			335,778			(2,744	)
General Motors Co		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	3,301		528,531			503,749			24,782
General Motors Co		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	1,650		264,133			254,379			9,754
General Motors Co		5.00			Quarterly		JPMorgan Chase Bank NA		12/20/23	BBB		USD	2,080		333,034			335,778			(2,744	)
21st Century Fox America, Inc		1.00			Quarterly		BNP Paribas SA		06/20/24	A		USD	3,302		117,499			115,489			2,010
Anadarko Petroleum Corp		1.00			Quarterly		BNP Paribas SA		06/20/24	BBB		USD	10,000		(64,666	)		(163,289	)		98,623
Verizon Communications, Inc		1.00			Quarterly		Goldman Sachs Bank USA		06/20/24	BBB+		USD	10,000		181,069			183,160			(2,091	)
														$	3,829,243		$	3,513,800		$	315,443

^(a)  Using S&P 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.

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

Reference Index		Reference Rate
3 month LIBOR	London Interbank Offered Rate	2.60%
6 month EURIBOR	Euro Interbank Offered Rate	(0.23)

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)	$	2,889,029	$	(717,025	)	$	2,982,581	$	(1,944,376	)
OTC Swaps		4,149,056		(403,210	)		323,350		(398,222	)

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

82 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Net unrealized appreciation(a)	$	—	$	—	$	—	$	—	$	9,499,280	$	—	$	9,499,280
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		1,878,540		—		—		1,878,540
Swaps — centrally cleared
Net unrealized appreciation(a)		—		2,156,061		—		—		826,520		—		2,982,581
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		4,472,406		—		—		—		—		4,472,406
	$	—	$	6,628,467	$	—	$	1,878,540	$	10,325,800	$	—	$	18,832,807
Liabilities — Derivative Financial Instruments
Futures contracts
Net unrealized depreciation(a)	$	—	$	—	$	—	$	—	$	6,572,937	$	—	$	6,572,937
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		11,793		—		—		11,793
Swaps — centrally cleared
Net unrealized depreciation(a)		—		74,525		—		—		1,869,851		—		1,944,376
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		801,432		—		—		—		—		801,432
	$	—	$	875,957	$	—	$	11,793	$	8,442,788	$	—	$	9,330,538

^(a)  Includes cumulative appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

For the six month ended March 31, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—	$	(4,680,942	)	$	—	$	(4,680,942	)
Forward foreign currency exchange contracts		—		—			—		1,796,809		—			—		1,796,809
Options purchased(a)		—		(91,875	)		—		—		(5,355,047	)		—		(5,446,922	)
Options written		—		(49,125	)		—		—		(2,020,354	)		—		(2,069,479	)
Swaps		—		(548,231	)		—		—		4,145,409			—		3,597,178
	$	—	$	(689,231	)	$	—	$	1,796,809	$	(7,910,934	)	$	—	$	(6,803,356	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—		$	—	$	—	$	2,565,530		$	—	$	2,565,530
Forward foreign currency exchange contracts		—		—			—		1,439,197		—			—		1,439,197
Options purchased(b)		—		—			—		—		683,211			—		683,211
Options written		—		—			—		—		(6,688,092	)		—		(6,688,092	)
Swaps		—		1,844,463			—		—		4,699,357			—		6,543,820
	$	—	$	1,844,463		$	—	$	1,439,197	$	1,260,006		$	—	$	4,543,666

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

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

SCHEDULES OF INVESTMENTS 83

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	2,868,983,906
Average notional value of contracts — short		878,943,692
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		201,142,191
Average amounts sold — in USD		15,278,264
Options:
Average notional value of swaption contracts purchased		1,356,484,500
Average notional value of swaption contracts written		3,137,870,000
Credit default swaps:
Average notional value — buy protection		50,127,526
Average notional value — sell protection		166,103,103
Interest rate swaps:
Average notional value — pays fixed rate		734,714,000
Average notional value — receives fixed rate		457,194,000

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	2,028,383		$	2,775,041
Forward foreign currency exchange contracts		1,878,540			11,793
Swaps — Centrally cleared		530,294			—
Swaps — OTC(a)		4,472,406			801,432
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	8,909,623		$	3,588,266
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(2,558,677	)		(2,775,041	)
Total derivative assets and liabilities subject to an MNA	$	6,350,946		$	813,225

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

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received			Net Amount of Derivative Assets (b)(e)
Bank of America NA	$	30,414	$	(30,414	)	$	—	$	—		$	—
Barclays Bank plc		129,295		—			—		—			129,295
BNP Paribas SA		615,978		(454,686	)		—		—			161,292
Goldman Sachs Bank USA		183,160		(115,300	)		—		—			67,860
Goldman Sachs International		179,748		(59,046	)		—		—			120,702
HSBC Bank plc		223,212		—			—		—			223,212
JPMorgan Chase Bank NA		3,463,106		(140,796	)		—		(3,272,655	)		49,655
Nomura International plc		1,491,086		—			—		—			1,491,086
State Street Bank and Trust Co.		11,806		(2,518	)		—		—			9,288
Toronto Dominion Bank		16,707		(2,555	)		—		—			14,152
UBS AG		6,434		(6,434	)		—		—			—
	$	6,350,946	$	(811,749	)	$	—	$	(3,272,655	)	$	2,266,542

84 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2019 BlackRock Low Duration Bond Portfolio

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged (c)			Net Amount of Derivative Liabilities  (d)(e)
Bank of America NA	$	31,604	$	(30,414	)	$	—	$	(1,190	)	$	—
BNP Paribas SA		454,686		(454,686	)		—		—			—
Goldman Sachs Bank USA		115,300		(115,300	)		—		—			—
Goldman Sachs International		59,046		(59,046	)		—		—			—
JPMorgan Chase Bank NA		140,796		(140,796	)		—		—			—
State Street Bank and Trust Co.		2,518		(2,518	)		—		—			—
Toronto Dominion Bank		2,555		(2,555	)		—		—			—
UBS AG		6,720		(6,434	)		—		—			286
	$	813,225	$	(811,749	)	$	—	$	(1,190	)	$	286

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

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

^(c)  Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

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

^(e)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

Fair Value Hierarchy as of Period End

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

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

	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—		$	1,841,145,402		$	9,036,570	$	1,850,181,972
Corporate Bonds(a)		—			2,203,013,650			—		2,203,013,650
Foreign Agency Obligations		—			6,272,662			—		6,272,662
Foreign Government Obligations		—			95,028,969			—		95,028,969
Investment Companies		159,763,200			—			—		159,763,200
Municipal Bonds		—			22,042,511			—		22,042,511
Non-Agency Mortgage-Backed Securities		—			932,408,759			—		932,408,759
U.S. Government Sponsored Agency Securities		—			557,052,944			—		557,052,944
U.S. Treasury Obligations		—			746,440,981			—		746,440,981
Short-Term Securities:
Money Market Funds		19,244,869			—			—		19,244,869
Repurchase Agreements		—			80,000,000			—		80,000,000
Liabilities:
TBA Sale Commitments		—			(32,724,195	)		—		(32,724,195	)
	$	179,008,069		$	6,450,681,683		$	9,036,570	$	6,638,726,322
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—		$	2,479,411		$	—	$	2,479,411
Foreign currency exchange contracts		—			1,878,540			—		1,878,540
Interest rate contracts		9,499,280			826,520			—		10,325,800
Liabilities:
Credit contracts		—			(472,747	)		—		(472,747	)
Foreign currency exchange contracts		—			(11,793	)		—		(11,793	)
Interest rate contracts		(6,572,937	)		(1,869,851	)		—		(8,442,788	)
	$	2,926,343		$	2,830,080		$	—	$	5,756,423

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

^b)  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.

During the six months ended March 31, 2019 there were no transfers between levels.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 85

Statements of Assets and Liabilities  (unaudited)

March 31, 2019

	BlackRock Core Bond Portfolio		BlackRock High Yield Bond Portfolio (a)		BlackRock Low Duration Bond Portfolio
ASSETS
Investments at value — unaffiliated(b)(c)	$	3,685,754,000	$	16,214,183,011	$	6,426,925,404
Investments at value — affiliated(d)		50,781,147		410,948,239		164,525,113
Cash		70,325		4,480,206		870,785
Cash pledged:
Collateral — OTC derivatives		650,000		4,390,000		380,000
Futures contracts		3,090,520		6,160,950		5,683,000
Centrally cleared swaps		2,108,778		—		4,741,750
Foreign currency at value(e)		5,149,596		49,299,481		8,009,760
Repurchase agreements at value(f)		—		—		80,000,000
Receivables:
Investments sold		169,806,535		237,186,426		5,714,479
Securities lending income — affiliated		—		43,270		—
Swaps		93,324		84,332		—
TBA sale commitments		458,856,745		—		32,461,228
Capital shares sold		4,568,174		76,893,433		20,675,782
Dividends — affiliated		25,394		418,546		45,576
Dividends — unaffiliated		2,056		573,668		219,518
Interest — unaffiliated		22,985,394		233,879,689		31,536,377
From the Manager		106,004		4,082		179,805
Variation margin on futures contracts		610,866		15,985		2,028,383
Variation margin on centrally cleared swaps		—		—		530,294
Swap premiums paid		393,405		725,244		4,149,056
Unrealized appreciation on:
Forward foreign currency exchange contracts		4,013,319		12,292,314		1,878,540
OTC swaps		726,169		7,868,952		323,350
Prepaid expenses		120,396		539,351		323,339
Other assets		—		58,888		—
Total assets		4,409,912,147		17,260,046,067		6,791,201,539

86 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Assets and Liabilities  (unaudited) (continued)

March 31, 2019

	BlackRock Core Bond Portfolio			BlackRock High Yield Bond Portfolio (a)			BlackRock Low Duration Bond Portfolio
LIABILITIES
Cash received:
Collateral — OTC derivatives	$	4,410,000		$	780,000		$	3,272,655
Collateral — TBA commitments		1,439,000			—			1,380,000
Cash collateral on securities loaned at value		—			12,146,624			—
TBA sale commitments at value(g)		460,322,040			—			32,724,195
Reverse repurchase agreements at value		191,819,866			94,256,957			—
Payables:
Investments purchased		688,422,636			685,307,204			297,704,758
Swaps		—			—			296,621
Administration fees		59,362			708,659			197,228
Board realignment and consolidation		151,777			964,424			—
Capital shares redeemed		4,926,481			96,834,258			22,569,699
Custodian fees		82,489			167,799			82,261
Income dividend distributions		1,697,426			11,267,911			2,317,729
Investment advisory fees		805,432			5,612,426			1,517,190
Trustees’ and Officer’s fees		9,592			50,407			15,001
Other affiliates		3,533			117,106			—
Professional fees		148,896			273,731			104,593
Service and distribution fees		148,365			648,217			430,479
Transfer agent fees		885,484			4,861,694			1,197,837
Other accrued expenses		399,617			1,326,401			400,354
Variation margin on futures contracts		866,433			865,269			2,775,041
Variation margin on centrally cleared swaps		731,735			—			—
Swap premiums received		549,520			5,615,489			403,210
Unrealized depreciation on:
Forward foreign currency exchange contracts		2,212,175			408,048			11,793
OTC swaps		570,769			1,611,842			398,222
Unfunded floating rate loan interests		—			12,701			—
Total liabilities		1,360,662,628			923,837,167			367,798,866
NET ASSETS	$	3,049,249,519		$	16,336,208,900		$	6,423,402,673
NET ASSETS CONSIST OF
Paid-in capital	$	3,093,245,659		$	17,201,829,829		$	6,517,028,075
Accumulated loss		(43,996,140	)		(865,620,929	)		(93,625,402	)
NET ASSETS	$	3,049,249,519		$	16,336,208,900		$	6,423,402,673
(a) Consolidated Statement of Assets and Liabilities.
(b) Investments at cost — unaffiliated	$	3,647,575,176		$	16,250,661,279		$	6,418,720,970
(c) Securities loaned at value	$	—		$	31		$	—
(d) Investments at cost — affiliated	$	50,781,147		$	410,945,805		$	164,202,174
(e) Foreign currency at cost	$	5,201,729		$	49,634,847		$	8,071,461
(f)  Repurchase agreements at cost — unaffiliated	$	—		$	—		$	80,000,000
(g) Proceeds from TBA sale commitments	$	458,856,745		$	—		$	32,461,228

See notes to financial statements.

FINANCIAL STATEMENTS 87

Statements of Assets and Liabilities  (unaudited) (continued)

March 31, 2019

	BlackRock Core Bond Portfolio		BlackRock High Yield Bond Portfolio (a)		BlackRock Low Duration Bond Portfolio
NET ASSET VALUE
Institutional
Net assets	$	1,786,942,363	$	10,352,373,730	$	4,530,763,877
Share outstanding(b)		187,440,482		1,371,797,608		474,577,833
Net asset value	$	9.53	$	7.55	$	9.55
Service
Net assets	$	38,518,035	$	202,926,615	$	34,295,349
Share outstanding(b)		4,039,231		26,880,931		3,593,968
Net asset value	$	9.54	$	7.55	$	9.54
Investor A
Net assets	$	440,246,184	$	1,293,485,884	$	1,294,263,005
Share outstanding(b)		46,112,756		171,450,713		135,610,238
Net asset value	$	9.55	$	7.54	$	9.54
Investor A1
Net assets	$	—	$	—	$	9,312,821
Share outstanding(b)		—		—		974,993
Net asset value	$	—	$	—	$	9.55
Investor C
Net assets	$	51,833,391	$	279,924,114	$	165,197,569
Share outstanding(b)		5,452,079		37,050,103		17,317,522
Net asset value	$	9.51	$	7.56	$	9.54
Investor C1
Net assets	$	—	$	1,546,529	$	—
Share outstanding(b)		—		204,578		—
Net asset value	$	—	$	7.56	$	—
Investor C2
Net assets	$	—	$	—	$	117,550
Share outstanding(b)		—		—		12,319
Net asset value	$	—	$	—	$	9.54
Investor C3
Net assets	$	—	$	—	$	647,060
Share outstanding(b)		—		—		67,837
Net asset value	$	—	$	—	$	9.54
Class K
Net assets	$	728,914,695	$	4,081,537,838	$	384,717,014
Share outstanding(b)		76,230,673		540,474,766		40,332,049
Net asset value	$	9.56	$	7.55	$	9.54
Class R
Net assets	$	2,794,851	$	124,414,190	$	4,088,428
Share outstanding(b)		292,611		16,488,420		428,518
Net asset value	$	9.55	$	7.55	$	9.54

^(a)  Consolidated Statement of Assets and Liabilities

^(b)  Unlimited number of shares authorized, $0.001 par value

See notes to financial statements.

88 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Operations  (unaudited)

March 31, 2019

	BlackRock Core Bond Portfolio			BlackRock High Yield Bond Portfolio (a)			BlackRock Low Duration Bond Portfolio
INVESTMENT INCOME
Dividends — affiliated	$	115,447		$	6,601,279		$	1,888,315
Dividends — unaffiliated		2,382			5,790,733			5,400
Interest — affiliated		—			—			1,017
Interest — unaffiliated		53,787,739			478,489,166			92,121,243
Securities lending income — affiliated — net		—			281,629			—
Foreign taxes withheld		(50,787	)		(5,646	)		—
Total investment income		53,854,781			491,157,161			94,015,975
EXPENSES
Investment advisory		5,052,215			30,757,743			8,873,556
Transfer agent — class specific		1,191,856			6,996,448			3,007,729
Service and distribution — class specific		871,109			3,552,672			2,528,389
Administration		563,622			2,496,912			1,101,583
Administration — class specific		297,113			1,494,134			620,314
Registration		131,924			546,821			242,368
Accounting services		114,863			439,533			180,148
Board realignment and consolidation		95,572			499,201			235,491
Professional		76,716			213,937			81,482
Custodian		54,656			114,059			51,255
Trustees and Officer		24,495			102,477			42,467
Printing		24,341			111,190			47,711
Recoupment of past waived and/or reimbursed fees — class specific		—			6,708			—
Miscellaneous		78,512			144,181			81,577
Total expenses excluding interest expense		8,576,994			47,476,016			17,094,070
Interest expense		2,279,725			113,184			94
Total expenses		10,856,719			47,589,200			17,094,164
Less:
Transfer agent fees waived and/or reimbursed — class specific		(629,813	)		(67,555	)		(1,250,373	)
Fees waived and/or reimbursed by the Manager		(474,057	)		(262,220	)		(384,903	)
Administration fees waived — class specific		(297,105	)		(124,301	)		(603,875	)
Total expenses after fees waived and/or reimbursed		9,455,744			47,135,124			14,855,013
Net investment income		44,399,037			444,022,037			79,160,962
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		—			3,450,392			337,126
Investments — unaffiliated		(1,997,951	)		(238,080,376	)		(16,454,370	)
Forward foreign currency exchange contracts		(1,449,165	)		27,639,614			1,796,809
Foreign currency transactions		1,133,357			(531,095	)		217,017
Futures contracts		(4,279,975	)		7,071,253			(4,680,942	)
Options written		951,690			8,272,050			(2,069,479	)
In-kind redemptions		—			(6,621,345	)(b)		—
Swaps		1,816,919			(11,806,100	)		3,597,178
		(3,825,125	)		(210,605,607	)		(17,256,661	)
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		—			(334	)		324,937
Investments — unaffiliated		87,924,280			(16,036,661	)		68,870,718
Forward foreign currency exchange contracts		(1,535,553	)		8,780,938			1,439,197
Foreign currency translations		(100,031	)		(800,500	)		(7,035	)
Futures contracts		9,258,741			(2,694,776	)		2,565,530
Options written		(57,715	)		—			(6,688,092	)
Short sales — unaffiliated		—			(12,137	)		—
Swaps		(766,613	)		(2,803,805	)		6,543,820
Unfunded floating rate loan interests		—			(20,332	)		—
		94,723,109			(13,587,607	)		73,049,075
Net realized and unrealized gain (loss)		90,897,984			(224,193,214	)		55,792,414
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	135,297,021		$	219,828,823		$	134,953,376

^(a)  Consolidated Statement of Operations.

^(b) See Note 2 of the Notes to Financial Statements.

See notes to financial statements.

FINANCIAL STATEMENTS 89

Statements of Changes in Net Assets

	BlackRock Core Bond Portfolio
	Six Months Ended 03/31/19 (unaudited)			Year Ended 09/30/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	44,399,037		$	79,371,813
Net realized loss		(3,825,125	)		(43,337,388	)
Net change in unrealized appreciation (depreciation)		94,723,109			(84,829,163	)
Net increase (decrease) in net assets resulting from operations		135,297,021			(48,794,738	)
DISTRIBUTIONS TO SHAREHOLDERS(a)(b)
Institutional		(26,837,860	)		(49,176,129	)
Service		(614,402	)		(1,313,225	)
Investor A		(6,124,928	)		(11,068,762	)
Investor C		(575,639	)		(1,076,563	)
Class K		(11,233,546	)		(20,266,346	)
Class R		(36,037	)		(69,177	)
Decrease in net assets resulting from distributions to shareholders		(45,422,412	)		(82,970,202	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(45,842,854	)		3,157,226
NET ASSETS(b)
Total increase (decrease) in net assets		44,031,755			(128,607,714	)
Beginning of period		3,005,217,764			3,133,825,478
End of period	$	3,049,249,519		$	3,005,217,764

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

^(b)  Prior year distribution character information and distributions in excess of net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information.

See notes to financial statements.

90 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets  (continued)

	BlackRock High Yield Bond Portfolio(a)						BlackRock Low Duration Bond Portfolio
	Six Months Ended 03/31/19 (unaudited)			Year Ended 09/30/18			Six Months Ended 03/31/19 (unaudited)			Year Ended 09/30/18
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	444,022,037		$	872,463,488		$	79,160,962		$	116,564,645
Net realized gain (loss)		(210,605,607	)		114,756,370			(17,256,661	)		(27,184,611	)
Net change in unrealized appreciation (depreciation)		(13,587,607	)		(452,252,714	)		73,049,075			(55,762,909	)
Net increase in net assets resulting from operations		219,828,823			534,967,144			134,953,376			33,617,125
DISTRIBUTIONS TO SHAREHOLDERS(b)(c)
From net investment income:
Institutional		(290,147,150	)		(531,199,992	)		(60,767,387	)		(81,907,734	)
Service		(5,225,826	)		(11,541,240	)		(389,510	)		(610,577	)
Investor A		(38,128,684	)		(78,539,545	)		(16,448,650	)		(24,927,180	)
Investor A1		—			—			(124,516	)		(203,510	)
Investor B		—			(2,353	)		—			—
Investor B1		—			(3,549	)		—			—
Investor C		(7,713,047	)		(17,220,416	)		(1,509,665	)		(2,339,410	)
Investor C1		(85,722	)		(533,144	)		—			—
Investor C2		—			—			(2,511	)		(12,375	)
Investor C3		—			—			(8,083	)		(23,728	)
Class K		(127,811,135	)		(270,216,627	)		(4,547,069	)		(4,580,840	)
Class R		(3,537,746	)		(6,686,249	)		(46,104	)		(78,663	)
From return of capital:
Institutional		—			—			—			(7,528,485	)
Service		—			—			—			(64,339	)
Investor A		—			—			—			(2,610,782	)
Investor A1		—			—			—			(19,768	)
Investor C		—			—			—			(406,288	)
Investor C2		—			—			—			(1,416	)
Investor C3		—			—			—			(3,788	)
Class K		—			—			—			(410,717	)
Class R		—			—			—			(9,502	)
Decrease in net assets resulting from distributions to shareholders		(472,649,310	)		(915,943,115	)		(83,843,495	)		(125,739,102	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		626,217,644			(1,215,307,142	)		354,133,990			1,243,421,397
NET ASSETS(c)
Total increase (decrease) in net assets		373,397,157			(1,596,283,113	)		405,243,871			1,151,299,420
Beginning of period		15,962,811,743			17,559,094,856			6,018,158,802			4,866,859,382
End of period	$	16,336,208,900		$	15,962,811,743		$	6,423,402,673		$	6,018,158,802

^(a)  Consolidated Statements of Changes in Net Assets.

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

^(c)  Prior year distribution character information and undistributed (distributed in excess of) net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 13 for this prior year information.

See notes to financial statements.

FINANCIAL STATEMENTS 91

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Institutional
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.25		$	9.65		$	9.86		$	9.65		$	9.63		$	9.45
Net investment income(a)		0.14			0.25			0.23			0.21			0.21			0.27
Net realized and unrealized gain (loss)		0.28			(0.39	)		(0.19	)		0.24			0.05			0.20
Net increase (decrease) from investment operations		0.42			(0.14	)		0.04			0.45			0.26			0.47
Distributions from net investment income(b)		(0.14	)		(0.26	)		(0.25	)		(0.24	)		(0.24	)		(0.29	)
Net asset value, end of period	$	9.53		$	9.25		$	9.65		$	9.86		$	9.65		$	9.63
Total Return(c)
Based on net asset value		4.63	%(d)		(1.50	)%		0.46	%		4.78	%		2.66	%		5.05	%
Ratios to Average Net Assets
Total expenses(e)		0.67	%(f)		0.62	%		0.66	%		0.62	%		0.60	%		0.75	%
Total expenses after fees waived and/or reimbursed		0.59	%(f)		0.54	%		0.52	%		0.50	%		0.46	%		0.57	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense, interest expense and broker fees and expenses on short sales		0.44	%(f)		0.44	%		0.43	%		0.45	%		0.46	%		0.56	%
Net investment income		3.03	%(f)		2.61	%		2.36	%		2.16	%		2.15	%		2.78	%
Supplemental Data
Net assets, end of period (000)	$	1,786,942		$	1,762,677		$	1,778,980		$	1,853,077		$	1,774,919		$	1,361,482
Portfolio turnover rate(g)		305	%		658	%		712	%		594	%		863	%		702	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018		2017		2016		2015			2014
Expense ratios		N/A		N/A		N/A		N/A		0.60	%		0.74	%

^(f)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		194	%		455	%		493	%		422	%		616	%		493	%

See notes to financial statements.

92 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio (continued)
	Service
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.25		$	9.65		$	9.86		$	9.66		$	9.63		$	9.45
Net investment income(a)		0.13			0.22			0.20			0.18			0.18			0.24
Net realized and unrealized gain (loss)		0.29			(0.39	)		(0.18	)		0.23			0.05			0.21
Net increase (decrease) from investment operations		0.42			(0.17	)		0.02			0.41			0.23			0.45
Distributions from net investment income(b)		(0.13	)		(0.23	)		(0.23	)		(0.21	)		(0.20	)		(0.27	)
Net asset value, end of period	$	9.54		$	9.25		$	9.65		$	9.86		$	9.66		$	9.63
Total Return(c)
Based on net asset value		4.61	%(d)		(1.74	)%		0.20	%		4.32	%		2.44	%		4.78	%
Ratios to Average Net Assets
Total expenses(e)		1.03	%(f)		0.98	%		0.92	%		0.87	%		0.90	%		0.95	%
Total expenses after fees waived and/or reimbursed		0.84	%(f)		0.79	%		0.78	%		0.84	%		0.80	%		0.83	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense, interest expense and broker fees and expenses on short sales		0.69	%(f)		0.69	%		0.68	%		0.79	%		0.80	%		0.82	%
Net investment income		2.78	%(f)		2.36	%		2.11	%		1.81	%		1.86	%		2.54	%
Supplemental Data
Net assets, end of period (000)	$	38,518		$	49,375		$	55,196		$	55,154		$	46,481		$	191,106
Portfolio turnover rate(g)		305	%		658	%		712	%		594	%		863	%		702	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018		2017			2016			2015		2014
Expense ratios		N/A		N/A		0.92	%		0.80	%		N/A		N/A

^(f)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		194	%		455	%		493	%		422	%		616	%		493	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 93

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio (continued)
	Investor A
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.26		$	9.66		$	9.87		$	9.67		$	9.64		$	9.46
Net investment income(a)		0.13			0.22			0.20			0.18			0.18			0.24
Net realized and unrealized gain (loss)		0.29			(0.39	)		(0.18	)		0.23			0.05			0.20
Net increase (decrease) from investment operations		0.42			(0.17	)		0.02			0.41			0.23			0.44
Distributions from net investment income(b)		(0.13	)		(0.23	)		(0.23	)		(0.21	)		(0.20	)		(0.26	)
Net asset value, end of period	$	9.55		$	9.26		$	9.66		$	9.87		$	9.67		$	9.64
Total Return(c)
Based on net asset value		4.60	%(d)		(1.74	)%		0.21	%		4.32	%		2.42	%		4.72	%
Ratios to Average Net Assets
Total expenses(e)		1.01	%(f)		0.97	%		0.96	%		0.91	%		0.89	%		1.02	%
Total expenses after fees waived and/or reimbursed		0.84	%(f)		0.79	%		0.78	%		0.84	%		0.80	%		0.90	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense, interest expense and broker fees and expenses on short sales		0.69	%(f)		0.69	%		0.68	%		0.79	%		0.80	%		0.89	%
Net investment income		2.78	%(f)		2.36	%		2.11	%		1.81	%		1.82	%		2.47	%
Supplemental Data
Net assets, end of period (000)	$	440,246		$	427,610		$	470,559		$	503,640		$	474,202		$	507,915
Portfolio turnover rate(g)		305	%		658	%		712	%		594	%		863	%		702	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018		2017		2016		2015			2014
Expense ratios		N/A		N/A		N/A		N/A		0.89	%		1.01	%

^(f)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		194	%		455	%		493	%		422	%		616	%		493	%

See notes to financial statements.

94 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio (continued)
	Investor C
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.22		$	9.62		$	9.83		$	9.63		$	9.60		$	9.42
Net investment income(a)		0.09			0.15			0.13			0.10			0.10			0.17
Net realized and unrealized gain (loss)		0.30			(0.39	)		(0.19	)		0.24			0.06			0.20
Net increase (decrease) from investment operations		0.39			(0.24	)		(0.06	)		0.34			0.16			0.37
Distributions from net investment income(b)		(0.10	)		(0.16	)		(0.15	)		(0.14	)		(0.13	)		(0.19	)
Net asset value, end of period	$	9.51		$	9.22		$	9.62		$	9.83		$	9.63		$	9.60
Total Return(c)
Based on net asset value		4.23	%(d)		(2.49	)%		(0.55	)%		3.55	%		1.66	%		3.96	%
Ratios to Average Net Assets
Total expenses(e)		1.73	%(f)		1.68	%		1.68	%		1.63	%		1.62	%		1.74	%
Total expenses after fees waived and/or reimbursed		1.59	%(f)		1.54	%		1.52	%		1.59	%		1.55	%		1.63	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense, interest expense and broker fees and expenses on short sales		1.44	%(f)		1.44	%		1.44	%		1.54	%		1.55	%		1.62	%
Net investment income		2.03	%(f)		1.63	%		1.35	%		1.06	%		1.07	%		1.75	%
Supplemental Data
Net assets, end of period (000)	$	51,833		$	61,437		$	71,628		$	110,227		$	109,272		$	119,113
Portfolio turnover rate(g)		305	%		658	%		712	%		594	%		863	%		702	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018		2017			2016		2015			2014
Expense ratios		N/A		N/A		1.68	%		N/A		1.61	%		1.74	%

^(f)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		194	%		455	%		493	%		422	%		616	%		493	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 95

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio (continued)
	Class K
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.28		$	9.68		$	9.89		$	9.68		$	9.65		$	9.47
Net investment income(a)		0.14			0.25			0.23			0.21			0.22			0.28
Net realized and unrealized gain (loss)		0.29			(0.39	)		(0.18	)		0.25			0.05			0.20
Net increase (decrease) from investment operations		0.43			(0.14	)		0.05			0.46			0.27			0.48
Distributions from net investment income(b)		(0.15	)		(0.26	)		(0.26	)		(0.25	)		(0.24	)		(0.30	)
Net asset value, end of period	$	9.56		$	9.28		$	9.68		$	9.89		$	9.68		$	9.65
Total Return(c)
Based on net asset value		4.64	%(d)		(1.44	)%		0.52	%		4.83	%		2.83	%		5.16	%
Ratios to Average Net Assets
Total expenses		0.59	%(e)		0.54	%		0.54	%		0.49	%		0.47	%(f)		0.60	%
Total expenses after fees waived and/or reimbursed		0.54	%(e)		0.49	%		0.48	%		0.45	%		0.41	%		0.46	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense, interest expense and broker fees and expenses on short sales		0.39	%(e)		0.39	%		0.38	%		0.40	%		0.40	%		0.45	%
Net investment income		3.09	%(e)		2.66	%		2.41	%		2.20	%		2.21	%		2.91	%
Supplemental Data
Net assets, end of period (000)	$	728,915		$	701,197		$	753,563		$	701,478		$	728,521		$	633,007
Portfolio turnover rate(g)		305	%		658	%		712	%		594	%		863	%		702	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Annualized.

^(f)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		194	%		455	%		493	%		422	%		616	%		493	%

See notes to financial statements.

96 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio (continued)
	Class R
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015				2014
Net asset value, beginning of period	$	9.27		$	9.67		$	9.88		$	9.67		$	9.64			$	9.46
Net investment income(a)		0.12			0.20			0.18			0.15			0.15				0.21
Net realized and unrealized gain (loss)		0.28			(0.39	)		(0.19	)		0.25			0.06				0.20
																��
Net increase (decrease) from investment operations		0.40			(0.19	)		(0.01	)		0.40			0.21				0.41
Distributions from net investment income(b)		(0.12	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)			(0.23	)
Net asset value, end of period	$	9.55		$	9.27		$	9.67		$	9.88		$	9.67			$	9.64
Total Return(c)
Based on net asset value		4.36	%(d)		(1.98	)%		(0.04	)%		4.16	%		2.17	%			4.42	%
Ratios to Average Net Assets
Total expenses(e)		1.30	%(f)		1.25	%		1.24	%		1.21	%		1.17	%			1.32	%
Total expenses after fees waived and/or reimbursed		1.09	%(f)		1.04	%		1.03	%		1.09	%		1.05	%			1.18	%
Total expenses after fees waived and/or reimbursed and excluding dividend expense, interest expense and broker fees and expenses on short sales		0.94	%(f)		0.94	%		0.93	%		1.04	%		1.05	%			1.17	%
Net investment income		2.53	%(f)		2.13	%		1.86	%		1.56	%		1.57	%			2.20	%
Supplemental Data
Net assets, end of period (000)	$	2,795		$	2,921		$	3,900		$	3,761		$	3,050			$	2,550
Portfolio turnover rate(g)		305	%		658	%		712	%		594	%		863	%			702	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

^(e)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018		2017		2016		2015		2014
Expense ratios		N/A		N/A		N/A		N/A		N/A		1.31	%

^(f)  Annualized.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		194	%		455	%		493	%		422	%		616	%		493	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 97

Consolidated Financial Highlights

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Institutional
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.67		$	7.85		$	7.61		$	7.42		$	8.20		$	8.15
Net investment income(a)		0.22			0.42			0.43			0.41			0.40			0.46
Net realized and unrealized gain (loss)		(0.10	)		(0.16	)		0.28			0.24			(0.62	)		0.17
Net increase (decrease) from investment operations		0.12			0.26			0.71			0.65			(0.22	)		0.63
Distributions(b)
From net investment income		(0.24	)		(0.44	)		(0.47	)		(0.46	)		(0.44	)		(0.46	)
From net realized gain		—			—			—			—			(0.12	)		(0.12	)
Total distributions		(0.24	)		(0.44	)		(0.47	)		(0.46	)		(0.56	)		(0.58	)
Net asset value, end of period	$	7.55		$	7.67		$	7.85		$	7.61		$	7.42		$	8.20
Total Return(c)
Based on net asset value		1.63	%(d)		3.48	%		9.64	%(e)		9.21	%		(2.82	)%		7.88	%
Ratios to Average Net Assets(f)
Total expenses		0.60	%(g)		0.61	%		0.62	%		0.61	%(h)		0.59	%		0.62	%(h)
Total expenses after fees waived and/or reimbursed		0.60	%(g)		0.61	%		0.61	%		0.61	%		0.59	%		0.62	%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.60	%(g)		0.61	%		0.59	%		0.60	%		0.58	%		0.59	%
Net investment income		5.97	%(g)		5.49	%		5.61	%		5.58	%		5.08	%		5.51	%
Supplemental Data
Net assets, end of period (000)	$	10,352,374		$	9,680,691		$	9,728,106		$	9,031,925		$	10,926,678		$	7,898,330
Portfolio turnover rate		52	%		90	%		86	%		90	%		70	%		87	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		N/A

^(g)  Annualized.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

See notes to financial statements.

98 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio (continued)
	Service
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.67		$	7.85		$	7.62		$	7.42		$	8.20		$	8.16
Net investment income(a)		0.21			0.40			0.41			0.39			0.38			0.43
Net realized and unrealized gain (loss)		(0.10	)		(0.16	)		0.27			0.25			(0.62	)		0.16
Net increase (decrease) from investment operations		0.11			0.24			0.68			0.64			(0.24	)		0.59
Distributions(b)
From net investment income		(0.23	)		(0.42	)		(0.45	)		(0.44	)		(0.42	)		(0.43	)
From net realized gain		—			—			—			—			(0.12	)		(0.12	)
Total distributions		(0.23	)		(0.42	)		(0.45	)		(0.44	)		(0.54	)		(0.55	)
Net asset value, end of period	$	7.55		$	7.67		$	7.85		$	7.62		$	7.42		$	8.20
Total Return(c)
Based on net asset value		1.48	%(d)		3.19	%		9.15	%(e)		9.04	%		(3.13	)%		7.41	%
Ratios to Average Net Assets(f)
Total expenses(g)		0.89	%(h)		0.90	%		0.93	%		0.90	%		0.90	%		0.94	%
Total expenses after fees waived and/or reimbursed		0.89	%(h)		0.89	%		0.93	%		0.89	%		0.90	%		0.94	%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.89	%(h)		0.89	%		0.90	%		0.89	%		0.90	%		0.91	%
Net investment income		5.71	%(h)		5.20	%		5.31	%		5.32	%		4.76	%		5.20	%
Supplemental Data
Net assets, end of period (000)	$	202,927		$	176,188		$	231,741		$	378,766		$	303,043		$	346,355
Portfolio turnover rate		52	%		90	%		86	%		90	%		70	%		87	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		N/A

^(g)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018			2017		2016			2015		2014
Expense ratios		N/A		0.90	%		N/A		0.90	%		N/A		0.93	%

^(h)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 99

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio (continued)
	Investor A
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.67		$	7.85		$	7.61		$	7.42		$	8.20		$	8.15
Net investment income(a)		0.21			0.40			0.41			0.39			0.38			0.43
Net realized and unrealized gain (loss)		(0.12	)		(0.16	)		0.28			0.24			(0.62	)		0.17
Net increase (decrease) from investment operations		0.09			0.24			0.69			0.63			(0.24	)		0.60
Distributions(b)
From net investment income		(0.22	)		(0.42	)		(0.45	)		(0.44	)		(0.42	)		(0.43	)
From net realized gain		—			—			—			—			(0.12	)		(0.12	)
Total distributions		(0.22	)		(0.42	)		(0.45	)		(0.44	)		(0.54	)		(0.55	)
Net asset value, end of period	$	7.54		$	7.67		$	7.85		$	7.61		$	7.42		$	8.20
Total Return(c)
Based on net asset value		1.33	%(d)		3.15	%		9.29	%(e)		8.86	%		(3.11	)%		7.53	%
Ratios to Average Net Assets(f)
Total expenses(g)		0.96	%(h)		0.96	%		0.98	%		0.93	%		0.93	%		0.97	%
Total expenses after fees waived and/or reimbursed		0.92	%(h)		0.93	%		0.94	%		0.93	%		0.92	%		0.95	%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.92	%(h)		0.93	%		0.91	%		0.92	%		0.92	%		0.92	%
Net investment income		5.66	%(h)		5.17	%		5.29	%		5.27	%		4.75	%		5.21	%
Supplemental Data
Net assets, end of period (000)	$	1,293,486		$	1,326,541		$	1,672,705		$	3,733,406		$	2,797,049		$	3,120,217
Portfolio turnover rate		52	%		90	%		86	%		90	%		70	%		87	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		N/A

^(g)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018		2017			2016			2015			2014
Expense ratios		N/A		N/A		0.97	%		0.90	%		0.89	%		0.97	%

^(h)  Annualized.

See notes to financial statements.

100 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio (continued)
	Investor C
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.68		$	7.86		$	7.62		$	7.43		$	8.21		$	8.16
Net investment income(a)		0.18			0.35			0.35			0.33			0.32			0.37
Net realized and unrealized gain (loss)		(0.10	)		(0.16	)		0.28			0.24			(0.62	)		0.17
Net increase (decrease) from investment operations		0.08			0.19			0.63			0.57			(0.30	)		0.54
Distributions(b)
From net investment income		(0.20	)		(0.37	)		(0.39	)		(0.38	)		(0.36	)		(0.37	)
From net realized gain		—			—			—			—			(0.12	)		(0.12	)
Total distributions		(0.20	)		(0.37	)		(0.39	)		(0.38	)		(0.48	)		(0.49	)
Net asset value, end of period	$	7.56		$	7.68		$	7.86		$	7.62		$	7.43		$	8.21
Total Return(c)
Based on net asset value		1.10	%(d)		2.43	%		8.48	%(e)		8.04	%		(3.85	)%		6.73	%
Ratios to Average Net Assets(f)
Total expenses		1.65	%(g)		1.64	%		1.69	%		1.69	%		1.67	%(h)		1.70	%(h)
Total expenses after fees waived and/or reimbursed		1.65	%(g)		1.63	%		1.68	%		1.69	%		1.67	%		1.70	%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		1.65	%(g)		1.63	%		1.66	%		1.68	%		1.66	%		1.67	%
Net investment income		4.94	%(g)		4.47	%		4.55	%		4.51	%		4.00	%		4.44	%
Supplemental Data
Net assets, end of period (000)	$	279,924		$	329,005		$	417,276		$	539,243		$	578,935		$	624,573
Portfolio turnover rate		52	%		90	%		86	%		90	%		70	%		87	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		N/A

^(g)  Annualized.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 101

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio (continued)
	Investor C1
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.68		$	7.86		$	7.62		$	7.43		$	8.21		$	8.17
Net investment income(a)		0.19			0.36			0.36			0.34			0.33			0.39
Net realized and unrealized gain (loss)		(0.11	)		(0.16	)		0.29			0.25			(0.62	)		0.16
Net increase (decrease) from investment operations		0.08			0.20			0.65			0.59			(0.29	)		0.55
Distributions(b)
From net investment income		(0.20	)		(0.38	)		(0.41	)		(0.40	)		(0.37	)		(0.39	)
From net realized gain		—			—			—			—			(0.12	)		(0.12	)
Total distributions		(0.20	)		(0.38	)		(0.41	)		(0.40	)		(0.49	)		(0.51	)
Net asset value, end of period	$	7.56		$	7.68		$	7.86		$	7.62		$	7.43		$	8.21
Total Return(c)
Based on net asset value		1.16	%(d)		2.65	%		8.67	%(e)		8.23	%		(3.68	)%		6.78	%
Ratios to Average Net Assets(f)
Total expenses		1.51	%(g)		1.43	%		1.51	%		1.51	%		1.49	%		1.52	%
Total expenses after fees waived and/or reimbursed		1.49	%(g)		1.43	%		1.51	%		1.51	%		1.49	%		1.52	%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		1.49	%(g)		1.43	%		1.48	%		1.50	%		1.49	%		1.50	%
Net investment income		5.00	%(g)		4.69	%		4.75	%		4.69	%		4.19	%		4.63	%
Supplemental Data
Net assets, end of period (000)	$	1,546		$	9,409		$	12,353		$	52,539		$	61,492		$	79,613
Portfolio turnover rate		52	%		90	%		86	%		90	%		70	%		87	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		N/A

^(g)  Annualized.

See notes to financial statements.

102 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio (continued)
	Class K
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.68		$	7.85		$	7.62		$	7.42		$	8.20		$	8.16
Net investment income(a)		0.23			0.43			0.44			0.42			0.41			0.47
Net realized and unrealized gain (loss)		(0.12	)		(0.15	)		0.27			0.25			(0.62	)		0.16
Net increase (decrease) from investment operations		0.11			0.28			0.71			0.67			(0.21	)		0.63
Distributions(b)
From net investment income		(0.24	)		(0.45	)		(0.48	)		(0.47	)		(0.45	)		(0.47	)
From net realized gain		—			—			—			—			(0.12	)		(0.12	)
Total distributions		(0.24	)		(0.45	)		(0.48	)		(0.47	)		(0.57	)		(0.59	)
Net asset value, end of period	$	7.55		$	7.68		$	7.85		$	7.62		$	7.42		$	8.20
Total Return(c)
Based on net asset value		1.55	%(d)		3.73	%		9.59	%(e)		9.44	%		(2.76	)%		7.82	%
Ratios to Average Net Assets(f)
Total expenses(g)		0.50	%(h)		0.50	%		0.53	%		0.53	%		0.53	%		0.56	%
Total expenses after fees waived and/or reimbursed		0.50	%(h)		0.50	%		0.52	%		0.53	%		0.51	%		0.55	%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.50	%(h)		0.50	%		0.50	%		0.52	%		0.51	%		0.53	%
Net investment income		6.07	%(h)		5.59	%		5.70	%		5.71	%		5.17	%		5.59	%
Supplemental Data
Net assets, end of period (000)	$	4,081,538		$	4,312,394		$	5,363,522		$	5,028,654		$	1,853,500		$	1,352,840
Portfolio turnover rate		52	%		90	%		86	%		90	%		70	%		87	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		N/A

^(g)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015		2014
Expense ratios		0.50	%		0.50	%		0.53	%		0.53	%		N/A		0.56	%

^(h)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 103

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio (continued)
	Class R
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	7.67		$	7.85		$	7.61		$	7.42		$	8.20		$	8.15
Net investment income(a)		0.20			0.38			0.38			0.36			0.35			0.41
Net realized and unrealized gain (loss)		(0.11	)		(0.16	)		0.28			0.24			(0.62	)		0.17
Net increase (decrease) from investment operations		0.09			0.22			0.66			0.60			(0.27	)		0.58
Distributions(b)
From net investment income		(0.21	)		(0.40	)		(0.42	)		(0.41	)		(0.39	)		(0.41	)
From net realized gain		—			—			—			—			(0.12	)		(0.12	)
Total distributions		(0.21	)		(0.40	)		(0.42	)		(0.41	)		(0.51	)		(0.53	)
Net asset value, end of period	$	7.55		$	7.67		$	7.85		$	7.61		$	7.42		$	8.20
Total Return(c)
Based on net asset value		1.31	%(d)		2.83	%		8.94	%(e)		8.51	%		(3.43	)%		7.19	%
Ratios to Average Net Assets(f)
Total expenses(g)		1.24	%(h)		1.24	%		1.26	%		1.26	%		1.23	%		1.28	%
Total expenses after fees waived and/or reimbursed		1.23	%(h)		1.24	%		1.26	%		1.26	%		1.23	%		1.27	%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		1.23	%(h)		1.24	%		1.23	%		1.25	%		1.22	%		1.24	%
Net investment income		5.35	%(h)		4.86	%		4.96	%		4.95	%		4.46	%		4.90	%
Supplemental Data
Net assets, end of period (000)	$	124,414		$	128,584		$	132,868		$	113,010		$	97,300		$	72,267
Portfolio turnover rate		52	%		90	%		86	%		90	%		70	%		87	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Investments in underlying funds		0.01	%		0.01	%		0.01	%		0.01	%		0.01	%		N/A

^(g)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018		2017			2016			2015			2014
Expense ratios		N/A		N/A		1.26	%		1.26	%		1.22	%		N/A

^(h)  Annualized.

See notes to financial statements.

104 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Institutional
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.47		$	9.63		$	9.65		$	9.68		$	9.74		$	9.71
Net investment income(a)		0.12			0.21			0.16			0.16			0.16			0.22
Net realized and unrealized gain (loss)		0.09			(0.14	)		0.02			—			(0.04	)		0.02
Net increase from investment operations		0.21			0.07			0.18			0.16			0.12			0.24
Distributions(b)
From net investment income		(0.13	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)		(0.21	)
From return of capital		—			(0.02	)		—			—			—			—
Total distributions		(0.13	)		(0.23	)		(0.20	)		(0.19	)		(0.18	)		(0.21	)
Net asset value, end of period	$	9.55		$	9.47		$	9.63		$	9.65		$	9.68		$	9.74
Total Return(c)
Based on net asset value		2.25	%(d)		0.69	%(e)		1.88	%		1.63	%		1.19	%		2.52	%
Ratios to Average Net Assets
Total expenses		0.45	%(f)(g)		0.52	%(h)		0.49	%(h)		0.50	%		0.52	%(h)		0.66	%(h)
Total expenses after fees waived and/or reimbursed		0.40	%(f)(g)		0.48	%		0.43	%		0.47	%		0.45	%		0.46	%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.40	%(f)(g)		0.40	%		0.41	%		0.45	%		0.45	%		0.45	%
Net investment income		2.63	%(f)(g)		2.21	%		1.69	%		1.66	%		1.61	%		2.26	%
Supplemental Data
Net assets, end of period (000)	$	4,530,764		$	4,274,410		$	3,097,000		$	3,020,681		$	2,885,841		$	1,134,331
Portfolio turnover rate(i)		80	%		218	%		292	%		316	%		289	%		269	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

^(f)  Annualized.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		67	%		169	%		208	%		246	%		231	%		194	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 105

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio (continued)
	Service
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.47		$	9.63		$	9.64		$	9.67		$	9.74		$	9.71
Net investment income(a)		0.11			0.18			0.14			0.13			0.13			0.19
Net realized and unrealized gain (loss)		0.08			(0.14	)		0.02			(0.01	)		(0.05	)		0.02
Net increase from investment operations		0.19			0.04			0.16			0.12			0.08			0.21
Distributions(b)
From net investment income		(0.12	)		(0.18	)		(0.17	)		(0.15	)		(0.15	)		(0.18	)
From return of capital		—			(0.02	)		—			—			—			—
Total distributions		(0.12	)		(0.20	)		(0.17	)		(0.15	)		(0.15	)		(0.18	)
Net asset value, end of period	$	9.54		$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Total Return(c)
Based on net asset value		2.02	%(d)		0.43	%(e)		1.73	%		1.29	%		0.78	%		2.16	%
Ratios to Average Net Assets
Total expenses(f)		0.76	%(g)(h)		0.87	%		0.81	%		0.81	%		0.88	%		0.94	%
Total expenses after fees waived and/or reimbursed		0.65	%(g)(h)		0.74	%		0.68	%		0.81	%		0.77	%		0.82	%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.65	%(g)(h)		0.66	%		0.67	%		0.79	%		0.77	%		0.81	%
Net investment income		2.38	%(g)(h)		1.93	%		1.41	%		1.32	%		1.31	%		1.92	%
Supplemental Data
Net assets, end of period (000)	$	34,295		$	29,050		$	37,710		$	60,358		$	56,550		$	217,127
Portfolio turnover rate(i)		80	%		218	%		292	%		316	%		289	%		269	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

^(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018		2017			2016			2015			2014
Expense ratios		N/A		N/A		0.81	%		0.78	%		0.88	%		0.94	%

^(g)  Annualized.

^(h)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		67	%		169	%		208	%		246	%		231	%		194	%

See notes to financial statements.

106 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio (continued)
	Investor A
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.47		$	9.63		$	9.64		$	9.67		$	9.74		$	9.71
Net investment income(a)		0.11			0.18			0.14			0.13			0.12			0.19
Net realized and unrealized gain (loss)		0.08			(0.14	)		0.02			(0.01	)		(0.04	)		0.02
Net increase from investment operations		0.19			0.04			0.16			0.12			0.08			0.21
Distributions(b)
From net investment income		(0.12	)		(0.18	)		(0.17	)		(0.15	)		(0.15	)		(0.18	)
From return of capital		—			(0.02	)		—			—			—			—
Total distributions		(0.12	)		(0.20	)		(0.17	)		(0.15	)		(0.15	)		(0.18	)
Net asset value, end of period	$	9.54		$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Total Return(c)
Based on net asset value		2.02	%(d)		0.43	%(e)		1.73	%		1.29	%		0.75	%		2.16	%
Ratios to Average Net Assets
Total expenses(f)		0.78	%(g)(h)		0.88	%		0.81	%		0.83	%		0.86	%		0.96	%
Total expenses after fees waived and/or reimbursed		0.65	%(g)(h)		0.74	%		0.68	%		0.81	%		0.79	%		0.81	%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.65	%(g)(h)		0.66	%		0.66	%		0.79	%		0.79	%		0.80	%
Net investment income		2.38	%(g)(h)		1.94	%		1.47	%		1.32	%		1.29	%		1.93	%
Supplemental Data
Net assets, end of period (000)	$	1,294,263		$	1,267,494		$	1,309,023		$	875,788		$	822,299		$	1,472,352
Portfolio turnover rate(i)		80	%		218	%		292	%		316	%		289	%		269	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

^(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

	Six Months Ended 03/31/19 (unaudited)		For the Year Ended September 30,
			2018		2017		2016		2015			2014
Expense ratios		N/A		N/A		N/A		N/A		0.85	%		0.96	%

^(g)  Annualized.

^(h)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		67	%		169	%		208	%		246	%		231	%		194	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 107

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio (continued)
	Investor A1
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.48		$	9.64		$	9.65		$	9.68		$	9.75		$	9.72
Net investment income(a)		0.12			0.20			0.15			0.15			0.14			0.20
Net realized and unrealized gain (loss)		0.08			(0.14	)		0.03			(0.01	)		(0.05	)		0.02
Net increase from investment operations		0.20			0.06			0.18			0.14			0.09			0.22
Distributions(b)
From net investment income		(0.13	)		(0.20	)		(0.19	)		(0.17	)		(0.16	)		(0.19	)
From return of capital		—			(0.02	)		—			—			—			—
Total distributions		(0.13	)		(0.22	)		(0.19	)		(0.17	)		(0.16	)		(0.19	)
Net asset value, end of period	$	9.55		$	9.48		$	9.64		$	9.65		$	9.68		$	9.75
Total Return(c)
Based on net asset value		2.09	%(d)		0.59	%(e)		1.88	%		1.48	%		0.94	%		2.33	%
Ratios to Average Net Assets
Total expenses		0.60	%(f)(g)		0.70	%		0.66	%		0.68	%		0.69	%		0.81	%(h)
Total expenses after fees waived and/or reimbursed		0.50	%(f)(g)		0.59	%		0.53	%		0.62	%		0.60	%		0.65	%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.50	%(f)(g)		0.51	%		0.51	%		0.60	%		0.60	%		0.64	%
Net investment income		2.53	%(f)(g)		2.09	%		1.59	%		1.51	%		1.47	%		2.09	%
Supplemental Data
Net assets, end of period (000)	$	9,313		$	9,492		$	10,751		$	11,892		$	14,742		$	18,617
Portfolio turnover rate(i)		80	%		218	%		292	%		316	%		289	%		269	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

^(f)  Annualized.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		67	%		169	%		208	%		246	%		231	%		194	%

See notes to financial statements.

108 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio (continued)
	Investor C
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.46		$	9.63		$	9.64		$	9.67		$	9.73		$	9.71
Net investment income(a)		0.08			0.11			0.06			0.06			0.05			0.12
Net realized and unrealized gain (loss)		0.08			(0.15	)		0.03			(0.01	)		(0.04	)		0.01
Net increase (decrease) from investment operations		0.16			(0.04	)		0.09			0.05			0.01			0.13
Distributions(b)
From net investment income		(0.08	)		(0.11	)		(0.10	)		(0.08	)		(0.07	)		(0.11	)
From return of capital		—			(0.02	)		—			—			—			—
Total distributions		(0.08	)		(0.13	)		(0.10	)		(0.08	)		(0.07	)		(0.11	)
Net asset value, end of period	$	9.54		$	9.46		$	9.63		$	9.64		$	9.67		$	9.73
Total Return(c)
Based on net asset value		1.74	%(d)		(0.42	)%(e)		0.97	%		0.55	%		0.11	%		1.31	%
Ratios to Average Net Assets
Total expenses		1.52	%(f)(g)		1.62	%		1.58	%		1.59	%		1.59	%		1.71	%(h)
Total expenses after fees waived and/or reimbursed		1.40	%(f)(g)		1.49	%		1.43	%		1.55	%		1.53	%		1.54	%
Total expenses after fees waived and/or reimbursed and excluding interest expense		1.40	%(f)(g)		1.41	%		1.42	%		1.53	%		1.53	%		1.53	%
Net investment income		1.63	%(f)(g)		1.18	%		0.67	%		0.58	%		0.54	%		1.19	%
Supplemental Data
Net assets, end of period (000)	$	165,198		$	172,631		$	243,527		$	372,307		$	361,424		$	331,179
Portfolio turnover rate(i)		80	%		218	%		292	%		316	%		289	%		269	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

^(f)  Annualized.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		67	%		169	%		208	%		246	%		231	%		194	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 109

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio (continued)
	Investor C2
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.47		$	9.63		$	9.64		$	9.67		$	9.74		$	9.71
Net investment income(a)		0.10			0.17			0.11			0.11			0.11			0.17
Net realized and unrealized gain (loss)		0.08			(0.14	)		0.04			—			(0.05	)		0.02
Net increase from investment operations		0.18			0.03			0.15			0.11			0.06			0.19
Distributions(b)
From net investment income		(0.11	)		(0.17	)		(0.16	)		(0.14	)		(0.13	)		(0.16	)
From return of capital		—			(0.02	)		—			—			—			—
Total distributions		(0.11	)		(0.19	)		(0.16	)		(0.14	)		(0.13	)		(0.16	)
Net asset value, end of period	$	9.54		$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Total Return(c)
Based on net asset value		1.94	%(d)		0.28	%(e)		1.57	%		1.14	%		0.60	%		2.00	%
Ratios to Average Net Assets
Total expenses		1.24	%(f)(g)		1.04	%		0.97	%(h)		0.98	%		0.99	%		1.11	%(h)
Total expenses after fees waived and/or reimbursed		0.80	%(f)(g)		0.89	%		0.83	%		0.96	%		0.94	%		0.97	%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.80	%(f)(g)		0.81	%		0.82	%		0.94	%		0.94	%		0.96	%
Net investment income		2.18	%(f)(g)		1.78	%		1.20	%		1.17	%		1.14	%		1.77	%
Supplemental Data
Net assets, end of period (000)	$	118		$	574		$	852		$	6,139		$	6,938		$	7,939
Portfolio turnover rate(i)		80	%		218	%		292	%		316	%		289	%		269	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

^(f)  Annualized.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		67	%		169	%		208	%		246	%		231	%		194	%

See notes to financial statements.

110 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio (continued)
	Investor C3
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.46		$	9.63		$	9.64		$	9.67		$	9.73		$	9.71
Net investment income(a)		0.08			0.12			0.06			0.06			0.06			0.12
Net realized and unrealized gain (loss)		0.09			(0.15	)		0.04			(0.01	)		(0.06	)		0.01
Net increase (decrease) from investment operations		0.17			(0.03	)		0.10			0.05			0.00			0.13
Distributions(b)
From net investment income		(0.09	)		(0.12	)		(0.11	)		(0.08	)		(0.06	)		(0.11	)
From return of capital		—			(0.02	)		—			—			—			—
Total distributions		(0.09	)		(0.14	)		(0.11	)		(0.08	)		(0.06	)		(0.11	)
Net asset value, end of period	$	9.54		$	9.46		$	9.63		$	9.64		$	9.67		$	9.73
Total Return(c)
Based on net asset value		1.79	%(d)		(0.32	)%(e)		1.07	%		0.57	%		0.14	%		1.30	%
Ratios to Average Net Assets
Total expenses		1.62	%(f)(g)		1.67	%		1.56	%(h)		1.57	%		1.57	%		1.69	%(h)
Total expenses after fees waived and/or reimbursed		1.30	%(f)(g)		1.39	%		1.33	%		1.52	%		1.50	%		1.56	%
Total expenses after fees waived and/or reimbursed and excluding interest expense		1.30	%(f)(g)		1.31	%		1.32	%		1.50	%		1.50	%		1.55	%
Net investment income		1.70	%(f)(g)		1.29	%		0.69	%		0.61	%		0.57	%		1.18	%
Supplemental Data
Net assets, end of period (000)	$	647		$	1,675		$	2,197		$	18,350		$	21,631		$	26,209
Portfolio turnover rate(i)		80	%		218	%		292	%		316	%		289	%		269	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

^(f)  Annualized.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		67	%		169	%		208	%		246	%		231	%		194	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 111

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio (continued)
	Class K
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.46		$	9.62		$	9.64		$	9.67		$	9.73		$	9.71
Net investment income(a)		0.13			0.22			0.15			0.16			0.16			0.23
Net realized and unrealized gain (loss)		0.08			(0.15	)		0.03			—			(0.04	)		0.01
Net increase from investment operations		0.21			0.07			0.18			0.16			0.12			0.24
Distributions(b)
From net investment income		(0.13	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)		(0.22	)
From return of capital		—			(0.02	)		—			—			—			—
Total distributions		(0.13	)		(0.23	)		(0.20	)		(0.19	)		(0.18	)		(0.22	)
Net asset value, end of period	$	9.54		$	9.46		$	9.62		$	9.64		$	9.67		$	9.73
Total Return(c)
Based on net asset value		2.27	%(d)		0.73	%(e)		1.93	%		1.69	%		1.24	%		2.46	%
Ratios to Average Net Assets
Total expenses		0.37	%(f)(g)		0.46	%		0.43	%		0.44	%		0.44	%(h)		0.58	%(h)
Total expenses after fees waived and/or reimbursed		0.35	%(f)(g)		0.44	%		0.37	%		0.41	%		0.40	%		0.42	%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.35	%(f)(g)		0.35	%		0.36	%		0.40	%		0.40	%		0.41	%
Net investment income		2.67	%(f)(g)		2.27	%		1.63	%		1.71	%		1.67	%		2.30	%
Supplemental Data
Net assets, end of period (000)	$	384,717		$	258,340		$	161,006		$	930,769		$	927,190		$	557,690
Portfolio turnover rate(i)		80	%		218	%		292	%		316	%		289	%		269	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

^(f)  Annualized.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		67	%		169	%		208	%		246	%		231	%		194	%

See notes to financial statements.

112 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio (continued)
	Class R
	Six Months Ended 03/31/19 (unaudited)			Year Ended September 30,
				2018			2017			2016			2015			2014
Net asset value, beginning of period	$	9.47		$	9.63		$	9.64		$	9.67		$	9.74		$	9.71
Net investment income(a)		0.10			0.16			0.11			0.10			0.10			0.15
Net realized and unrealized gain (loss)		0.08			(0.14	)		0.03			—			(0.05	)		0.02
Net increase from investment operations		0.18			0.02			0.14			0.10			0.05			0.17
Distributions(b)
From net investment income		(0.11	)		(0.16	)		(0.15	)		(0.13	)		(0.12	)		(0.14	)
From return of capital		—			(0.02	)		—			—			—			—
Total distributions		(0.11	)		(0.18	)		(0.15	)		(0.13	)		(0.12	)		(0.14	)
Net asset value, end of period	$	9.54		$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Total Return(c)
Based on net asset value		1.89	%(d)		0.18	%(e)		1.47	%		1.04	%		0.48	%		1.81	%
Ratios to Average Net Assets
Total expenses		1.14	%(f)(g)		1.24	%		1.25	%		1.24	%		1.16	%		1.29	%(h)
Total expenses after fees waived and/or reimbursed		0.90	%(f)(g)		0.99	%		0.93	%		1.06	%		1.05	%		1.16	%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.90	%(f)(g)		0.91	%		0.92	%		1.04	%		1.05	%		1.15	%
Net investment income		2.13	%(f)(g)		1.69	%		1.18	%		1.07	%		1.02	%		1.57	%
Supplemental Data
Net assets, end of period (000)	$	4,088		$	4,493		$	4,794		$	5,181		$	4,247		$	3,860
Portfolio turnover rate(i)		80	%		218	%		292	%		316	%		289	%		269	%

^(a)  Based on average shares outstanding.

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

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

^(d)  Aggregate total return.

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

^(f)  Annualized.

^(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%.

^(h)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

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

	Six Months Ended 03/31/19 (unaudited)			For the Year Ended September 30,
				2018			2017			2016			2015			2014
Portfolio turnover rate (excluding MDRs)		67	%		169	%		208	%		246	%		231	%		194	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 113

Notes to Financial Statements  (unaudited) 

1. ORGANIZATION

BlackRock Funds V (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as anopen-end management investment company. The Trust is organized as a Massachusetts business trust. The following, each of which is a series of the Trust, are referred to herein collectively as the “Funds” or individually as a “Fund”:

Fund Name	Herein Referred To As	Diversification Classification
BlackRock Core Bond Portfolio	Core Bond	Diversified
BlackRock High Yield Bond Portfolio	High Yield Bond	Diversified
BlackRock Low Duration Bond Portfolio	Low Duration Bond	Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional, Service and Class K 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 CDSC for certain redemptions where no initial sales charge was paid at the time of purchase. Investor A1 Shares are subject to a maximum sales charge on purchases of 1.00%. The sales charge does not apply to dividend and capital gain reinvestments by existing shareholders and new purchases for certain employer-sponsored retirement plans, which are currently the only investors who may invest in Investor A1 Shares. Investor C Shares may be subject to a CDSC. Investor C1, Investor C2 and Investor C3 Shares may be subject to a 1.00% CDSC if redeemed within one year of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through the reinvestment of dividends and capital gains by existing shareholders. Class R Shares are sold without a sales charge and available only to certain employer-sponsored retirement plans. Service, Investor A, Investor A1, Investor C, Investor C1, Investor C2 and Class R Shares bear certain expenses related to shareholder servicing of such shares, and Investor C, Investor C1, Investor C2 and Class R Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Investor A1, C1, C2 and C3 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans. Effective November 8, 2018, the Funds adopted an automatic conversion feature whereby Investor C, C1, C2 and C3 Shares held for approximately ten years will be automatically converted into Investor A Shares, and, thereafter, investors will be subject to lower ongoing fees. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C, C1, C2, C3 shareholders may vote on material changes to the Investor A distribution and service plan).

Share Class	Initial Sales Charge			CDSC			Conversion Privilege
Institutional, Service, Class K and Class R Shares		No			No		None
Investor A Shares		Yes			No	(a)	None
Investor A1 Shares		No	(b)		No	(c)	None
Investor C Shares		No			Yes		To Investor A Shares after approximately 10 years
Investor C1, Investor C2 and Investor C3 Shares		No			No	(d)	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.

^(b)  Investor A1 Shares are subject to a maximum sales charge on purchases of 1.00%. The sales charge does not apply to dividend and capital gain reinvestments by existing shareholders and new purchases for certain employer-sponsored retirement plans, which are currently the only investors who may invest in Investor A1 Shares.

^(c)  Investor A1 Shares may be subject to CDSC for certain redemptions where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders.

^(d)  A CDSC of 1.00% is assessed on certain redemptions of Investor C1, C2 and C3 Shares made within one year after purchase. The CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders.

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

Reorganization: The Board of Trustees of the Trust (the “Board”) approved an Agreement and Plan of Reorganization with respect to each of the following Target Funds (each, a “Target Fund”), pursuant to which each Target Fund reorganized into a newly created series (each, an “Acquiring Fund”) of BlackRock Funds V, a newly organized Massachusetts business trust. These reorganizations (the “Reorganizations”) closed on September 17, 2018 and were not subject to approval by shareholders of the Target Funds.

Target Fund	Target Fund’s Registrant	Acquiring Fund	Acquiring Fund’s Registrant
BlackRock Core Bond Portfolio	BlackRock Funds II	Core Bond	BlackRock Funds V
BlackRock High Yield Bond Portfolio	BlackRock Funds II	High Yield Bond	BlackRock Funds V
BlackRock Low Duration Bond Portfolio	BlackRock Funds II	Low Duration Bond	BlackRock Funds V

The Reorganizations were effected in connection with the reconfiguration of the boards of directors/trustees of certain BlackRock-advised funds.

Each Acquiring Fund has the same investment objective, strategies and policies, investment adviser, portfolio management team and service providers as the corresponding Target Fund. Each Target Fund is the performance and accounting survivor of its Reorganization, meaning that the corresponding Acquiring Fund assumed the performance and financial history of the Target Fund upon completion of the Reorganization. In addition, each Acquiring Fund is subject to the same contractual arrangements, including the same contractual fees and expenses, as those of the corresponding Target Fund as of the date of the Reorganization. The Reorganizations weretax-free, meaning that each Target Fund’s shareholders became shareholders of the corresponding Acquiring Fund without realizing any gain or loss for federal income tax purposes.

114 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

As a result, each Acquiring Fund acquired all of the assets and assumed all of the liabilities of the corresponding Target Fund in exchange for an equal aggregate value of newly-issued shares of its Acquiring Fund. Each shareholder of a Target Fund received shares of the corresponding Acquiring Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s Target Fund shares, as determined at the close of business on September 14, 2018.

The Reorganizations were accomplished by atax-free exchange of shares of each Acquiring Fund in the following amounts and at the following conversion ratio:

Target Fund	Shares Prior to Reorganization		Conversion Ratio		Shares Post- Reorganization
BlackRock Core Bond Portfolio		323,331,194		1		323,331,194
BlackRock High Yield Bond Portfolio		2,060,463,130		1		2,060,463,130
BlackRock Low Duration Bond Portfolio		631,561,905		1		631,561,905

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

Prior to the Reorganizations, the Acquiring Funds had not yet commenced operations and had no assets or liabilities. Each Target Fund’s net assets, fair value and cost of investments and derivative financial instruments prior to the Reorganizations were as follows:

Target Fund	Net Assets	Fair Value of Investments	Costs of Investments
BlackRock Core Bond Portfolio	$3,000,377,251	$3,055,989,536	$3,109,951,127
BlackRock High Yield Bond Portfolio	15,811,571,793	15,981,670,754	16,002,902,556
BlackRock Low Duration Bond Portfolio	5,980,671,533	6,102,036,533	6,160,645,901

Prior to the Reorganizations’ effective date, each Target Fund began to incur expenses in connection with the realignment and consolidation of the boards of directors/trustees of certain BlackRock-advised funds. These expenses and liabilities have been assumed by each respective Acquiring Fund. The Manager has voluntarily agreed to reimburse certain Acquiring Funds for all or a portion of such expenses, which amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations.

Basis of Consolidation: The accompanying consolidated financial statements of High Yield Bond include the accounts of BLK BR HY (Luxembourg) Investments, S.a.r.l. (the “Taxable Subsidiary”), which is a wholly-owned taxable subsidiary of High Yield Bond which holds shares of a private Canadian company. Gains on the sale of such shares will generally not be subject to capital gains taxes in Canada. Income earned on the investment held by the Taxable Subsidiary may be taxable to such subsidiary in Luxembourg. A tax provision for income, if any, is shown as income tax in the Consolidated Statement of Operations. A tax provision for realized and unrealized gains, if any, is included as a reduction of realized and/or unrealized gain (loss) in the Consolidated Statement of Operations for High Yield Bond. The net assets of the Taxable Subsidiary as of period end were $2,156,372, which is 1.3% of High Yield Bond’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated. The Taxable Subsidiary is subject to the same investment policies and restrictions that apply to High Yield Bond.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Dividends from foreign securities where theex-dividend date may have passed are subsequently recorded when the Funds are informed of theex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

NOTESTO FINANCIAL STATEMENTS 115

Notes to Financial Statements  (unaudited) (continued)

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

In-Kind Redemptions:High Yield Bond transferred securities and cash to shareholders in connection with anin-kind redemption transaction. For financial reporting purposes, these transactions were treated as a sale of securities and the resulting gains and losses were recognized based on the market value of the securities on the date of the redemption. For the six months ended March 31, 2019, High Yield Bond hadin-kind redemptions of $128,056,817. For tax purposes, no gains or losses were recognized.

Net gains and losses resulting from suchin-kind redemptions, which are included in the Statements of Operations were as follows:

Investments — unaffiliated	$	(6,631,801	)
Options written		10,456
Total	$	(6,621,345	)

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on theex-dividend date and made at least annually. Portions of return of capital distributions under U.S. GAAP may be taxed at ordinary income rates. The character of distributions is determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP. The portion of distributions that exceeds a Fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute anon-taxable return of capital. Realized net capital gains can be offset by capital losses carried forward from prior years. However, certain Funds have capital loss carryforwards frompre-2012 tax years that offset realized net capital gains but do not offset current earnings and profits. Consequently, if distributions in any tax year are less than the Fund’s current earnings and profits but greater than net investment income and net realized capital gains (taxable income), distributions in excess of taxable income are not treated asnon-taxable return of capital, but rather may be taxable to shareholders at ordinary income rates. Under certain circumstances, taxable excess distributions could be significant.

Deferred Compensation Plan:Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board effective January 1, 2019, the independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

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

Recent Accounting Standards: In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance to the Funds.

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is continues to evaluate the impact of this guidance to the Funds.

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

Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. 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 Funds and other shared expenses prorated to the Funds are allocated daily to each class based on their relative net assets or other appropriate methods.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Funds’ 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 Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

116 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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

• Equity investments traded on a recognized securities exchange are valued at 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 Funds’ net assets. Each business day, the Funds use a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-tradedover-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

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

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

• High Yield Bond values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule2a-7 under the 1940 Act.

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

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

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

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

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

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

The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of each Fund’s pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis. As a result of the inherent uncertainty in valuation of these investments, the fair values may differ from the values that would have been used had an active market existed.

NOTESTO FINANCIAL STATEMENTS 117

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 a Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

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

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

• Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each 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. Level 3 investments may also be adjusted to reflect illiquidity and/ornon-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. 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.

As of March 31, 2019, certain investments of the High Yield Bond were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

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

118 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

effect of shortening the maturity of the security. In addition, a fund may subsequently have to reinvest the proceeds at lower interest rates. If a fund has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

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

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

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

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

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

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

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

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

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior

NOTESTO FINANCIAL STATEMENTS 119

Notes to Financial Statements  (unaudited) (continued)

to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Warrants: Warrants entitle a fund to purchase a specified number of shares of common stock and arenon-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any. If the price of the underlying stock does not rise above the strike price before the warrant expires, the warrant generally expires without any value and a fund will lose any amount it paid for the warrant. Thus, investments in warrants may involve more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.

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

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

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

In connection with floating rate loan interests, certain funds may also enter into unfunded floating rate loan interests (“commitments”). In connection with these commitments, a fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statements of Operations, is recognized ratably over the commitment period. Unfunded floating rate loan interests aremarked-to-market daily, and any unrealized appreciation (depreciation) is included in the Statements of Assets and Liabilities and Statements of Operations. As of period end, High Yield Bond had the following unfunded floating rate loan interests:

Borrower	Par		Commitment Amount		Value		Unrealized Depreciation
Mavis Tire Express Services Corp., Delayed Draw 1st Lien Term Loan	$	461,841	$	461,841	$	449,140	$	(12,701	)

Forward Commitments and When-Issued Delayed Delivery Securities: Certain funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A fund may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

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

120 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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

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

Repurchase Agreements: Repurchase agreements are commitments to purchase a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. On a daily basis, the counterparty is required to maintain collateral subject to the agreement and in value no less than the agreed upon repurchase amount. Pursuant to the custodial undertaking associated with atri-party repurchase arrangement, an unaffiliated third party custodian maintains accounts to hold collateral for a fund and its counterparties. Typically, a fund and counterparty are not permitted to sell,re-pledge or use the collateral absent a default by the counterparty or a fund, respectively.

In the event the counterparty defaults and the fair value of the collateral declines, a fund could experience losses, delays and costs in liquidating the collateral.

Repurchase agreements are entered into by a fund under Master Repurchase Agreements (each, an “MRA”). The MRA permits a fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables with collateral held by and/or posted to the counterparty. As a result, one single net payment is created. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Based on the terms of the MRA, a fund receives securities as collateral with a market value in excess of the repurchase price at maturity. Upon a bankruptcy or insolvency of the MRA counterparty, a fund would recognize a liability with respect to such excess collateral. The liability reflects a fund’s obligation under bankruptcy law to return the excess to the counterparty.

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

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

For the six months ended March 31, 2019, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate were as follows:

	Average Borrowings		Daily Weighted Average Interest Rate
Core Bond	$	180,968,976		2.44	%
High Yield Bond	$	15,628,736		0.42	%

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

NOTESTO FINANCIAL STATEMENTS 121

Notes to Financial Statements  (unaudited) (continued)

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

Counterparty	Reverse Repurchase Agreements			Fair Value of Non-cash Collateral Pledged Including Accrued Interest (a)		Cash Collateral (Received)/Pledged (a)		Net Amount
Core Bond
Barclays Capital, Inc.	$	(49,605,740	)	$	49,592,754	$	—	$	(12,986	)
BNP Paribas SA		(145,157	)		145,157		—		—
Credit Suisse Securities USA LLC.		(929,074	)		929,074		—		—
Deutsche Bank Securities, Inc.		(43,556,502	)		43,518,356		—		(38,146	)
Merrill Lynch, Pierce, Fenner & Smith, Inc.		(97,583,393	)		97,583,393		—		—
		$(191,819,866)		$	191,768,734	$	—	$	(51,132	)

^(a)  Net collateral including accrued interest, with a value of $192,047,901 has been pledged/received in connection with open reverse repurchase agreements. Excess of net collateral pledged to the individual counterparty is not shown for financial reporting purposes.

Counterparty	Reverse Repurchase Agreements			Fair Value of Non-cash Collateral Pledged Including  Accrued Interest (a)		Cash Collateral (Received)/Pledged (a)		Net Amount
High Yield Bond
Barclays Bank plc.	$	(1,094,737	)	$	1,094,737	$	—	$	—
Barclays Capital, Inc.		(88,548,958	)		88,548,958		—		—
Deutsche Bank Securities, Inc.		(4,613,262	)		4,613,262		—		—
	$	(94,256,957	)	$	94,256,957	$	—	$	—

^(a)  Net collateral including accrued interest, with a value of $123,682,135 has been pledged/received in connection with open reverse repurchase agreements. Excess of net collateral pledged to the individual counterparty is not shown for financial reporting purposes.

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

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

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

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

As of period end, the following table is a summary of the Funds’ securities lending agreements by counterparty which are subject to offset under an MSLA:

High Yield Bond
Counterparty	Securities Loaned at Value		Cash Collateral Received (a)			Net Amount
Goldman Sachs		31		(31	)		—

^a)  Collateral with a value of $12,146,624 has been received in connection with securities lending agreements. Collateral received in excess of the value of securities loaned from the individual counterparty is not shown for financial reporting purposes.

122 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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

5. DERIVATIVE FINANCIAL INSTRUMENTS

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

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

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

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

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

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

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

Options: Certain Funds purchase and write call and put options to increase or decrease their exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.

A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.

Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value – unaffiliated and options written at value, respectively, in the Statements of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statements of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statements of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Funds write a call option, such option is typically “covered,” meaning that they hold the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statements of Assets and Liabilities.

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

NOTESTO FINANCIAL STATEMENTS 123

Notes to Financial Statements  (unaudited) (continued)

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

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

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

In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that /they may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Funds purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

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

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

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Funds’ counterparty on the swap agreement becomes the CCP. The Funds are required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statements of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statements 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 Funds may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Funds will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Funds will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities 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 or 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 Funds receive payment from or make a payment to the counterparty.

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

124 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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

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

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

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

Master Netting Arrangements: In order to define their contractual rights and to secure rights that will help them mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their counterparties. An ISDA Master Agreement is a bilateral agreement between each 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, each Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

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

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

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

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

	Core Bond
Average Daily Net Assets	Investment Advisory Fee
First $1 Billion		0.350	%
$1 Billion — $2 Billion		0.340
$2 Billion — $3 Billion		0.330
Greater than $3 Billion		0.320

	High Yield Bond
Average Daily Net Assets	Investment Advisory Fee
First $1 Billion		0.500	%
$1 Billion — $2 Billion		0.450
$2 Billion — $3 Billion		0.425
$3 Billion — $25 Billion		0.400
$25 Billion — $30 Billion		0.375
Greater than $30 Billion		0.350

NOTESTO FINANCIAL STATEMENTS 125

Notes to Financial Statements  (unaudited) (continued)

	Low Duration Bond
Average Daily Net Assets	Investment Advisory Fee
First $1 Billion		0.310	%
$1 Billion — $3 Billion		0.290
$3 Billion — $5 Billion		0.280
$5 Billion — $10 Billion		0.270
Greater than $10 Billion		0.260

The Manager provides investment management and other services to the Subsidiary. The Manager does not receive separate compensation from the Subsidiary for providing investment management or administrative services. However, High Yield Bond pays the Manager based on the Fund’s net assets, which includes the assets of the Subsidiary.

Service and Distribution Fees: The Trust, on behalf of the Funds, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule12b-1 under the 1940 Act, each 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 each Fund as follows:

	Service		Investor A			Investor A1			Investor C			Investor C1			Investor C2			Investor C3			Class R
Service Fee		0.25%		0.25	%		0.10	%		0.25	%		0.25	%		0.10	%		0.25	%		0.25	%
Distribution Fee		—		—			—			0.75			0.55			0.30			0.65			0.25

BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Funds. 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 March 31, 2019, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

	Service		Investor A		Investor A1		Investor C		Investor C1		Investor C2		Investor C3		Class R		Total
Core Bond	$	53,925	$	536,538	$	—	$	273,724	$	—	$	—	$	—	$	6,922	$	871,109
High Yield Bond		214,874		1,575,320		—		1,442,519		12,745		—		—		307,214		3,552,672
Low Duration Bond		38,434		1,623,873		4,645		846,901		—		435		3,974		10,127		2,528,389

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

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

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

For the six months ended March 31, 2019, the following table shows the class specific administration fees borne directly by each share class of each Fund:

	Institutional		Service		Investor A		Investor A1		Investor C		Investor C1		Investor C2		Investor C3		Class K		Class R		Total
Core Bond	$	172,898	$	4,313	$	42,920	$	—	$	5,474	$	—	$	—	$	—	$	71,231	$	277	$	297,113
High Yield Bond		914,273		17,188		126,015		—		28,848		319		—		—		395,203		12,288		1,494,134
Low Duration Bond		436,825		3,075		129,899		929		16,937		—		22		88		32,134		405		620,314

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds withsub-accounting, recordkeeping,sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the six months ended March 31, 2019, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent – class specific in the Statements of Operations:

	Institutional		Service		Investor A		Total
Core Bond	$	208,411	$	2,578	$	3,201	$	214,190
High Yield Bond		217,248		1,304		1,284		219,836
Low Duration Bond		108,203		525		117		108,845

126 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the six months ended March 31, 2019, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent – class specific in the Statements of Operations:

	Institutional		Service		Investor A		Investor A1		Investor C		Investor C1		Investor C2		Investor C3		Class K		Class R		Total
Core Bond	$	1,958	$	218	$	4,823	$	—	$	711	$	—	$	—	$	—	$	857	$	21	$	8,588
High Yield Bond		15,036		359		26,584		—		3,214		122		—		—		3,444		1,004		49,763
Low Duration Bond		3,584		260		4,512		129		973		—		93		22		149		38		9,760

For the six months ended March 31, 2019, the following table shows the class specific transfer agent fees borne directly by each class of each Fund:

	Institutional		Service		Investor A		Investor A1		Investor C		Investor C1		Investor C2		Investor C3		Class K		Class R		Total
Core Bond	$	730,391	$	40,593	$	376,464	$	—	$	39,345	$	—	$	—	$	—	$	2,204	$	2,859	$	1,191,856
High Yield Bond		5,000,201		124,004		1,359,983		—		221,077		3,435		—		—		140,331		147,417		6,996,448
Low Duration Bond		1,776,220		22,068		1,062,621		6,072		131,188		—		513		1,567		1,895		5,585		3,007,729

Other Fees: For the six months ended March 31, 2019, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

Core Bond	$	9,835
High Yield Bond		30,402
Low Duration Bond		28,296

For the six months ended March 31, 2019, affiliates received CDSCs as follows:

	Investor A		Investor C
Core Bond	$	173	$	882
High Yield Bond		8,191		11,878
Low Duration Bond		13,889		3,878

Expense Limitations, Waivers, Reimbursements and Recoupments: With respect to each Fund, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended March 31, 2019, the amounts waived were as follows:

Core Bond	$	2,980
High Yield Bond		152,641
Low Duration Bond		23,651

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through January 31, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended March 31, 2019, the amounts waived in investment advisory fees pursuant to these arrangements were as follows:

High Yield Bond	$	109,579
Low Duration Bond		125,761

The Funds have incurred expenses in connection with the realignment and consolidation of the boards of trustees of certain BlackRock-advised funds. The Manager has voluntarily agreed to reimburse certain Funds for all or a portion of such expenses, which amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended March 31, 2019, the amount reimbursed for Low Duration Bond was $235,491.

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

	Institutional			Service			Investor A			Investor A1			Investor C			Investor C1			Investor C2			Investor C3			Class K			Class R
Core Bond		0.43	%		0.68	%		0.68	%		N/A			1.43	%		N/A			N/A			N/A			0.38	%		0.93	%
High Yield Bond		0.67			1.02			0.92			N/A			1.72			1.56	%		N/A			N/A			0.58			1.28
Low Duration Bond		0.40			0.65			0.65			0.50	%		1.40			N/A			0.80	%		1.30	%		0.35			0.90

NOTESTO FINANCIAL STATEMENTS 127

Notes to Financial Statements  (unaudited) (continued)

The Manager has agreed not to reduce or discontinue these contractual expense limitations through January 31, 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 are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended March 31, 2019, the amounts waived and/or reimbursed by the Manager were as follows:

Core Bond $ 471,077

These amounts waived and/or reimbursed are included in administration fees waived — class specific and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statements of Operations. For the six months ended March 31, 2019, class specific expense waivers and/or reimbursements are as follows:

Administration Fees Waived	Institutional		Service		Investor A		Investor A1		Investor C		Investor C1		Investor C2		Investor C3		Class K		Class R		Total
Core Bond	$	172,893	$	4,314	$	42,918	$	—	$	5,474	$	—	$	—	$	—	$	71,229	$	277	$	297,105
High Yield Bond		—		—		124,247		—		—		54		—		—		—		—		124,301
Low Duration Bond		436,824		3,074		129,899		929		16,937		—		22		88		15,697		405		603,875

Transfer Agent Fees Waived and/or Reimbursed	Institutional		Service		Investor A		Investor A1		Investor C		Investor C1		Investor C2		Investor C3		Class K		Class R		Total
Core Bond	$	300,099	$	29,846	$	269,675	$	—	$	25,823	$	—	$	—	$	—	$	2,203	$	2,167	$	629,813
High Yield Bond		—		—		67,179		—		—		376		—		—		—		—		67,555
Low Duration Bond		471,534		12,858		675,568		3,302		80,993		—		445		1,299		4		4,370		1,250,373

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

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

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

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

For the six months ended March 31, 2019, the Manager recouped the following class specific waivers and/or reimbursements previously recorded by the Funds:

	Class K		Total
High Yield Bond	$	6,708	$	6,708

On March 31, 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 September 30,
	2019		2020		2021
Core Bond
Fund Level	$	1,395,106	$	1,018,164	$	471,077
Institutional		1,665,141		894,920		472,992
Service		57,664		83,608		34,160
Investor A		666,882		655,762		312,593
Investor C		100,310		69,990		31,297
Class R		6,421		5,691		2,444
Class K		141,557		149,611		73,432
High Yield Bond
Investor A	$	922,943	$	364,355	$	191,426
Investor C1		—		—		430
Low Duration Bond
Fund Level	$	1,360,340	$	14,318	$	—
Institutional		1,065,697		780,528		908,358
Service		48,650		35,327		15,932
Investor A		1,139,307		1,578,009		805,467
Investor A1		11,425		9,457		4,231
Investor C		375,156		225,545		97,930
Investor C2		4,355		978		467
Investor C3		22,086		5,082		1,387
Class R		14,220		11,332		4,775
Class K		100,254		22,813		15,701

128 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. High Yield Bond is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the High Yield Bond. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

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

Pursuant to the current securities lending agreement, High Yield Bond retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

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

Prior to January 1, 2019, High Yield Bond was subject to a different securities lending fee arrangement.

The share of securities lending income earned by High Yield Bond is shown as securities lending income – affiliated – net in the Consolidated Statement of Operations. For the six months ended March 31, 2019, High Yield Bond paid BIM $85,984 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow 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 period ended March 31, 2019, the Funds did not participate in the Interfund Lending Program.

Trustees and Officers: Certain trustees and/or officers of the Trusts are trustees and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

Other Transactions:The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the six months ended March 31, 2019, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule17a-7 under the 1940 Act were as follows:

	Purchases		Sales		Net Realized Gain (Loss)
Core Bond	$	5,948,031	$	1,396,071	$	50,465
High Yield Bond		412,373,357		4,364,770		(53,435	)

7. PURCHASES AND SALES

For the six months ended March 31, 2019, purchases and sales of investments, including paydowns, mortgage dollar rolls and excluding short-term securities, were as follows:

	Core Bond		High Yield Bond		Low Duration Bond
Purchases
Non-U.S Government Securities	$	9,817,039,044	$	8,685,733,597	$	4,007,614,970
U.S Government Securities		38,739,318		—		1,320,550,024
Total Purchases	$	9,855,778,362	$	8,685,733,597	$	5,328,164,994
Sales
Non-U.S Government Securities	$	9,775,936,818	$	7,608,181,017	$	3,483,202,752
U.S Government Securities		36,528,068		—		1,241,709,793
Total Sales	$	9,812,464,886	$	7,608,181,017	$	4,724,912,545

NOTESTO FINANCIAL STATEMENTS 129

Notes to Financial Statements  (unaudited) (continued)

For the six months ended March 31, 2019, purchases and sales related to mortgage dollar rolls were as follows:

Purchases and Sales — MDRs	Core Bond		Low Duration Bond
Purchases	$	3,571,830,903	$	728,622,909
Sales		3,572,928,605		728,903,211

8. INCOME TAX INFORMATION

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

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended September 30, 2018. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of March 31, 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 Funds’ financial statements.

As of September 30, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

	Core Bond		High Yield Bond		Low Duration Bond
No expiration date(a)	$	81,644,432	$	591,306,245	$	75,494,123
2019		4,477,013		—		—
	$	86,121,445	$	591,306,245	$	75,494,123

^(a)  Must be utilized prior to losses subject to expiration.

As of March 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Core Bond			High Yield Bond			Low Duration Bond
Tax cost	$	3,698,492,759		$	16,676,548,728		$	6,663,555,487
Gross unrealized appreciation		64,456,815			343,430,634			49,231,696
Gross unrealized depreciation		(23,127,193	)		(378,655,804	)		(35,843,210	)
Net unrealized appreciation (depreciation)	$	41,329,622		$	(35,225,170	)	$	13,388,486

9. BANK BORROWINGS

The Trust, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) 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 2019 unless extended or renewed. 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 Statements 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 March 31, 2019, the Funds did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

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

130 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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

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

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

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

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

A 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 such Fund.

For OTC options purchased, each Fund bears the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral held by the Funds should the counterparty fail to perform under the contracts. Options written by the Funds do not typically give rise to counterparty credit risk, as options written generally obligate the Funds, and not the counterparty, to perform. The Funds may be exposed to counterparty credit risk with respect to options written to the extent each Fund deposits collateral with its counterparty to a written option.

With exchange-traded options purchased, futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: Certain Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates. The Federal Reserve has begun to raise the Federal Funds rate, and each increase results in more pronounced interest rate risk in the current market environment.

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

Certain Funds invest a significant portion of their assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. Investment percentages in these securities are presented in the Schedules 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.

NOTESTO FINANCIAL STATEMENTS 131

Notes to Financial Statements  (unaudited) (continued)

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 03/31/19						Year Ended 09/30/18
Core Bond	Shares			Amount			Shares			Amount
Institutional
Shares sold		22,035,186		$	205,137,675			48,864,216		$	461,412,091
Shares issued in reinvestment of distributions		2,603,262			24,245,491			4,670,910			43,949,305
Shares redeemed		(27,748,876	)		(257,099,062	)		(47,337,773	)		(445,092,552	)
Net increase (decrease)		(3,110,428	)	$	(27,715,896	)		6,197,353		$	60,268,844
Service
Shares sold		278,407		$	2,576,191			835,063		$	7,863,521
Shares issued in reinvestment of distributions		65,237			607,420			139,083			1,309,412
Shares redeemed		(1,640,579	)		(15,205,147	)		(1,356,404	)		(12,719,786	)
Net decrease		(1,296,935	)	$	(12,021,536	)		(382,258	)	$	(3,546,853	)
Investor A
Shares sold		6,042,979		$	56,033,880			10,063,854		$	95,387,559
Shares issued in reinvestment of distributions		632,869			5,907,061			1,128,590			10,637,313
Shares redeemed		(6,721,813	)		(62,405,547	)		(13,725,459	)		(129,864,709	)
Net decrease		(45,965	)	$	(464,606	)		(2,533,015	)	$	(23,839,837	)
Investor C
Shares sold		523,147		$	4,842,138			1,494,279		$	13,985,191
Shares issued in reinvestment of distributions		56,659			526,316			103,614			972,869
Shares redeemed		(1,787,797	)		(16,477,790	)		(2,381,204	)		(22,358,952	)
Net decrease		(1,207,991	)	$	(11,109,336	)		(783,311	)	$	(7,400,892	)
Class K
Shares sold		6,114,323		$	56,816,192			11,779,731		$	110,535,607
Shares issued in reinvestment of distributions		1,158,285			10,825,038			2,000,052			18,876,186
Shares redeemed		(6,621,003	)		(61,965,853	)		(16,063,679	)		(150,890,070	)
Net increase (decrease)		651,605		$	5,675,377			(2,283,896	)	$	(21,478,277	)
Class R
Shares sold		26,483		$	247,570			75,189		$	707,644
Shares issued in reinvestment of distributions		3,862			36,035			7,262			68,532
Shares redeemed		(52,870	)		(490,462	)		(170,668	)		(1,621,935	)
Net decrease		(22,525	)	$	(206,857	)		(88,217	)	$	(845,759	)
Total Net Increase (Decrease)		(5,032,239	)	$	(45,842,854	)		126,656		$	3,157,226

132 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

	Six Months Ended 03/31/19						Year Ended 09/30/18
High Yield Bond	Shares			Amount			Shares			Amount
Institutional
Shares sold		580,472,858		$	4,294,257,909			586,349,409		$	4,530,072,111
Shares issued in reinvestment of distributions		34,864,813			258,092,470			60,347,512			465,690,685
Shares redeemed		(505,576,407	)		(3,733,258,377	)		(624,073,337	)		(4,827,053,831	)
Net increase		109,761,264		$	819,092,002			22,623,584		$	168,708,965
Service
Shares sold		16,400,627		$	122,442,962			14,655,447		$	112,931,159
Shares issued in reinvestment of distributions		698,303			5,172,129			1,481,742			11,444,802
Shares redeemed		(13,178,620	)		(98,311,063	)		(22,694,030	)		(174,612,474	)
Net increase (decrease)		3,920,310		$	29,304,028			(6,556,841	)	$	(50,236,513	)
Investor A
Shares sold		52,965,972		$	391,599,285			65,901,722		$	509,696,743
Shares issued from conversion		—			—			58,722			457,442
Shares issued in reinvestment of distributions		4,617,014			34,134,204			9,119,150			70,395,875
Shares redeemed		(59,116,312	)		(438,067,481	)		(115,276,588	)		(891,159,372	)
Net decrease		(1,533,326	)	$	(12,333,992	)		(40,196,994	)	$	(310,609,312	)
Investor B
Shares sold		—		$	—			1		$	14
Shares issued in reinvestment of distributions		—			—			201			1,571
Shares converted(a)		—			—			(26,195	)		(204,319	)
Shares redeemed		—			—			(977	)		(7,670	)
Net decrease		—		$	—			(26,970	)	$	(210,404	)
Investor B1
Shares sold		—		$	—			2		$	(156	)
Shares issued in reinvestment of distributions		—			—			305			2,390
Shares converted(a)		—			—			(32,493	)		(253,123	)
Shares redeemed		—			—			(7,526	)		(58,645	)
Net decrease		—		$	—			(39,712	)	$	(309,534	)
Investor C
Shares sold		2,964,607		$	22,117,127			5,685,024		$	44,078,825
Shares issued in reinvestment of distributions		941,495			6,966,502			2,016,261			15,585,289
Shares redeemed		(9,697,948	)		(72,195,351	)		(17,963,106	)		(139,096,212	)
Net decrease		(5,791,846	)	$	(43,111,722	)		(10,261,821	)	$	(79,432,098	)
Investor C1
Shares sold		9,137		$	67,606			13,954		$	107,955
Shares issued in reinvestment of distributions		11,101			82,626			68,229			527,643
Shares redeemed		(1,040,293	)		(7,826,124	)		(428,848	)		(3,319,224	)
Net decrease		(1,020,055	)	$	(7,675,892	)		(346,665	)	$	(2,683,626	)
Class K
Shares sold		130,413,233		$	968,876,675			185,109,008		$	1,435,151,275
Shares issued in reinvestment of distributions		15,361,945			113,724,464			30,920,042			238,861,237
Shares redeemed		(167,110,236	)		(1,239,714,545	)		(337,131,550	)		(2,613,300,234	)
Net decrease		(21,335,058	)	$	(157,113,406	)		(121,102,500	)	$	(939,287,722	)
Class R
Shares sold		1,863,495		$	13,835,373			4,081,198		$	31,570,362
Shares issued in reinvestment of distributions		478,225			3,534,164			865,499			6,678,105
Shares redeemed		(2,618,528	)		(19,312,911	)		(5,111,967	)		(39,495,365	)
Net decrease		(276,808	)	$	(1,943,374	)		(165,270	)	$	(1,246,898	)
Total Net Increase (Decrease)		83,724,481		$	626,217,644			(156,073,189	)	$	(1,215,307,142	)

NOTESTO FINANCIAL STATEMENTS 133

Notes to Financial Statements  (unaudited) (continued)

	Six Months Ended 03/31/19						Year Ended 09/30/18
Low Duration Bond	Shares			Amount			Shares			Amount
Institutional
Shares sold		115,300,332		$	1,090,927,869			226,980,442		$	2,165,652,977
Shares issued in reinvestment of distributions		6,137,670			58,189,082			8,912,201			84,833,324
Shares redeemed		(98,138,762	)		(928,415,220	)		(106,092,654	)		(1,010,911,223	)
Net increase		23,299,240		$	220,701,731			129,799,989		$	1,239,575,078
Service
Shares sold		1,016,954		$	9,625,618			736,550		$	7,014,649
Shares issued in reinvestment of distributions		41,021			388,732			70,741			673,866
Shares redeemed		(532,424	)		(5,036,977	)		(1,655,138	)		(15,771,867	)
Net increase (decrease)		525,551		$	4,977,373			(847,847	)	$	(8,083,352	)
Investor A
Shares sold		22,610,811		$	213,749,463			34,251,555		$	327,011,931
Shares issued in reinvestment of distributions		1,673,969			15,864,055			2,778,801			26,461,888
Shares redeemed		(22,537,487	)		(213,423,873	)		(39,099,997	)		(372,645,094	)
Net increase (decrease)		1,747,293		$	16,189,645			(2,069,641	)	$	(19,171,275	)
Investor A1
Shares sold		2,145		$	20,313			13,543		$	128,840
Shares issued in reinvestment of distributions		9,742			92,403			17,269			164,600
Shares redeemed		(38,506	)		(364,188	)		(144,663	)		(1,383,566	)
Net decrease		(26,619	)	$	(251,472	)		(113,851	)	$	(1,090,126	)
Investor C
Shares sold		2,994,873		$	28,264,669			1,103,649		$	10,521,418
Shares issued in reinvestment of distributions		135,838			1,286,707			247,205			2,353,382
Shares redeemed		(4,053,445	)		(38,328,303	)		(8,409,998	)		(80,184,616	)
Net decrease		(922,734	)	$	(8,776,927	)		(7,059,144	)	$	(67,309,816	)
Investor C2
Shares sold		1		$	3			17		$	166
Shares issued in reinvestment of distributions		263			2,487			1,441			13,726
Shares redeemed		(48,528	)		(457,744	)		(29,331	)		(279,223	)
Net decrease		(48,264	)	$	(455,254	)		(27,873	)	$	(265,331	)
Investor C3
Shares sold		16,919		$	160,061			2,780		$	26,536
Shares issued in reinvestment of distributions		844			7,982			2,835			26,991
Shares redeemed		(126,958	)		(1,197,277	)		(56,862	)		(542,348	)
Net decrease		(109,195	)	$	(1,029,234	)		(51,247	)	$	(488,821	)
Class K
Shares sold		21,181,055		$	200,253,883			18,291,643		$	173,880,864
Shares issued in reinvestment of distributions		474,513			4,496,396			518,270			4,927,624
Shares redeemed		(8,622,896	)		(81,537,154	)		(8,238,963	)		(78,334,082	)
Net increase		13,032,672		$	123,213,125			10,570,950		$	100,474,406
Class R
Shares sold		92,257		$	874,379			133,977		$	1,277,899
Shares issued in reinvestment of distributions		4,811			45,589			9,157			87,174
Shares redeemed		(143,149	)		(1,354,965	)		(166,426	)		(1,584,439	)
Net decrease		(46,081	)	$	(434,997	)		(23,292	)	$	(219,366	)
Total Net Increase		37,451,863		$	354,133,990			130,178,044		$	1,243,421,397

^(a)  Effective December 27, 2017, Investor B and Investor B1 Shares were converted into Investor A Shares.

134 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

12. REGULATIONS-X AMENDMENTS

On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532, Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to the Financial Statements.

Prior year distribution information and undistributed (distributions in excess of) net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.

Distributions for the year ended September 30, 2018 were classified as follows:

	Share Class	Net Investment Income			Net Realized Gain		Return of Capital
BlackRock Core Bond Portfolio	Institutional	$	(49,176,129	)	$	—	$	—
	Service		(1,313,225	)		—		—
	Investor A		(11,068,762	)		—		—
	Investor C		(1,076,563	)		—		—
	Class K		(20,266,346	)		—		—
	Class R		(69,177	)		—		—
BlackRock High Yield Bond Portfolio	Institutional		(531,199,992	)		—		—
	Service		(11,541,240	)		—		—
	Investor A		(78,539,545	)		—		—
	Investor B		(2,353	)		—		—
	Investor B1		(3,549	)		—		—
	Investor C		(17,220,416	)		—		—
	Investor C1		(533,144	)		—		—
	Class K		(270,216,627	)		—		—
	Class R		(6,686,249	)		—		—
BlackRock Low Duration Bond Portfolio	Institutional		(81,907,734	)		—		(7,528,485	)
	Service		(610,577	)		—		(64,339	)
	Investor A		(24,927,180	)		—		(2,610,782	)
	Investor A1		(203,510	)		—		(19,768	)
	Investor C		(2,339,410	)		—		(406,288	)
	Investor C2		(12,375	)		—		(1,416	)
	Investor C3		(23,728	)		—		(3,788	)
	Class K		(4,580,840	)		—		(410,717	)
	Class R		(78,663	)		—		(9,502	)

Undistributed (distributions in excess of) net investment income as of September 30, 2018 is as follows:

	Undistributed (Distributions in Excess of) Net Investment Income
BlackRock Core Bond Portfolio	$	(898,632	)
BlackRock High Yield Bond Portfolio		2,960,907
BlackRock Low Duration Bond Portfolio		(9,017,365	)

13. SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:

Effective April 18, 2019, the credit agreement was extended until April 2020 under the same terms.

NOTESTO FINANCIAL STATEMENTS 135

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

At a special meeting of shareholders held on November 21, 2018, each Fund’s shareholders elected Trustees who took office on January 1, 2019. The newly elected Trustees include three former Trustees and eight individuals who served as directors/trustees of the funds in the BlackRockClosed-End Complex. Information regarding the individuals who began serving as Trustees effective January 1, 2019 can be found in the proxy statement for the special meeting of shareholders, which is available on the SEC’s EDGAR Database at http://www.sec.gov.

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

JPMorgan Chase Bank, N.A.

New York, NY 10179

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Trust

100 Bellevue Parkway

Wilmington, DE 19809

136 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Additional Information

Proxy Results

A Special Meeting of Shareholders was held on November 21, 2018 for shareholders of record on September 24, 2018, to elect a Board of Trustees of the Trust. The newly elected Trustees took office effective January 1, 2019.

Shareholders approved the Trustees* of BlackRock Funds V with voting results as follows:

	Votes For	Votes Withheld
Michael J. Castellano	5,681,237,134	34,155,316
Richard E. Cavanagh	5,683,014,051	32,378,399
Cynthia L. Egan	5,689,624,061	25,768,389
Frank J. Fabozzi	5,685,956,903	29,435,547
Robert Fairbairn	5,687,114,814	28,277,636
Henry Gabbay	5,684,019,280	31,373,170
R. Glenn Hubbard	5,685,110,636	30,281,814
W. Carl Kester	5,686,245,509	29,146,941
Catherine A. Lynch	5,689,695,450	25,697,000
John M. Perlowski	5,683,657,097	31,735,353
Karen P. Robards	5,688,174,287	27,218,163

* Denotes Trust-wide proposal and voting results.

The above Trustees, referred to as the BlackRock Fixed-Income Board, have also been elected to serve as trustees for other BlackRock-advisednon-index fixed-income mutual funds and all of the BlackRock-advisedclosed-end funds.

General Information

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800)441-7762.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q. The Funds’ FormsN-Q are available on the SEC’s website at http://www.sec.gov. The Funds’ FormsN-Q may also be obtained upon request and without charge by calling (800)441-7762.

Availability of Proxy Voting Policies and Procedures

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

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent12-month period ended June 30 is available upon request and without charge (1) athttp://www.blackrock.com 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 ofopen-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income andtax-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.

ADDITIONAL INFORMATION 137

Additional Information  (continued)

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.

Blackrock Privacy Principles

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

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

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

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

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

138 2019 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report

Currency
ARS	Argentine Peso
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CHF	Swiss Franc
CLP	Chilean Peso
COP	Colombian Peso
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
RUB	New Russian Ruble
SEK	Swedish Krona
TRY	Turkish Lira
TWD	New Taiwan Dollar
USD	United States Dollar
ZAR	South African Rand

Portfolio Abbreviations

BZDIOVER	Overnight Brazil CETIP — Interbank Rate
CDX	Credit Default Swap Index
CDX	Credit Default Swap Index
CETIP	Central of Custody and Financial Settlement of Securities
CLO	Collateralized Loan Obligation
CSMC	Credit Suisse Mortgage Capital
DAC	Designated Activity Company
ETF	Exchange-Traded Fund
EURIBOR	Euro Interbank Offered Rate
GO	General Obligation Bonds
JIBAR	Johannesburg Interbank Agreed Rate
LIBOR	London Interbank Offered Rate
MXIBTIIE	Mexico Interbank TIIE28-Day
OTC	Over-The-Counter
PIK	Payment-in-kind
RB	Revenue Bonds
REIT	Real Estate Investment Trust
S&P	S&P Global Ratings
SPDR	S&P Global Ratings Depositary Receipts
TBA	To-be-announced

GLOSSARYOF TERMS USEDINTHIS REPORT 139

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

Taxable3-3/19-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 second fiscal quarter of 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 V
By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Funds V

Date: June 5, 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 V

Date: June 5, 2019

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

Date: June 5, 2019

4