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:811-23339

Name of Fund: BlackRock Funds V

BlackRock Core Bond Portfolio

BlackRock Income Fund (Formerly 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:  09/30/2020

Date of reporting period:  03/31/2020

Item 1 – Report to Stockholders

MARCH 31, 2020

2020 Semi-Annual Report

(Unaudited)

BlackRock Funds V

· BlackRock Credit Strategies Income Fund

· BlackRock GNMA Portfolio

· 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 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,

The last 12 months have been a time of sudden change in global financial markets, as a long period of growth and positive returns was interrupted in early 2020 by the emergence and spread of the coronavirus. For much of the reporting period, U.S. equities and bonds both delivered impressive returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus became more apparent throughout February and March 2020, leading countries around the world took economically disruptive countermeasures, causing equity prices to fall sharply. Now that the virus has spread around the globe and an economic downturn appears inevitable, investors are faced with the question of how long and how deep it will be.

Returns for most securities were robust for the first ten months of the reporting period, as investors began to realize that the U.S. economy was maintaining the modest yet steady growth that had characterized this economic cycle. However, oncestay-at-home orders and closures ofnon-essential businesses became widespread, many workers were laid off and unemployment claims spiked. With large portions of the economy on hold, all types of equities, both in the United States and internationally, ended the reporting period with negative performance.

The performance of different types of fixed-income securities diverged substantially due to a reduced investor appetite for risk. Treasuries benefited from therisk-off environment, and posted healthy returns, as the10-year yield (which is inversely related to bond prices) fell to anall-time low. Investment-grade corporate bonds also delivered a positive return, while high-yield corporates were down due to credit concerns.

The U.S. Federal Reserve (the “Fed”) reduced interest rates three times in 2019, to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also announced a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruption is certain to hurt worldwide economic growth, the global expansion is likely to continue once the impact of the outbreak subsides. For the near term, however, the disruption is likely to act as a further drag on corporate earnings, following flat earnings growth in 2019. Nonetheless, there are promising signs that a strong coordinated monetary and fiscal response is beginning to take place, both in the United States and abroad. With measures being taken to contain the virus and provide support to impacted businesses and individuals, we anticipate a sharp increase in economic activity as life returns to normal.

Overall, we favor a neutral stance toward risk, given the uncertainty surrounding the economic impact of coronavirus countermeasures. Among equities, we see an advantage in U.S. stocks compared to other developed markets, given the diversity of the U.S. economy and the impressive scope of monetary and fiscal stimulus. In bonds, the swift action taken by the world’s central banks means there are attractive opportunities in credit, and we expect credit spreads to narrow as markets stabilize.

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, 2020
	6-Month	12-Month
U.S. large cap equities (S&P 500®Index)	(12.31)%	(6.98)%
U.S. small cap equities (Russell 2000®Index)	(23.72)	(23.99)
International equities (MSCI Europe, Australasia, Far East Index)	(16.52)	(14.38)
Emerging market equities (MSCI Emerging Markets Index)	(14.55)	(17.69)
3-month Treasury bills (ICE BofAML3-Month U.S. Treasury Bill Index)	1.04	2.25
U.S. Treasury securities (ICE BofAML10-Year U.S. Treasury Index)	9.95	18.25
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	3.33	8.93
Tax-exempt municipal bonds (S&P Municipal Bond Index)	0.07	3.78
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	(10.40)	(6.94)
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
The Benefits and Risks of Leveraging		12
About Fund Performance		12
Disclosure of Expenses		13
Derivative Financial Instruments		13
Financial Statements:
Schedules of Investments		14
Statements of Assets and Liabilities		68
Statements of Operations		71
Statements of Changes in Net Assets		72
Financial Highlights		74
Notes to Financial Statements		89
Statement Regarding Liquidity Risk Management Program		105
Trustee and Officer Information		106
Additional Information		107
Glossary of Terms Used in this Report		109

3

Fund Summary  as of March 31, 2020 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.

On February 20, 2020, the Board of Trustees of the Trust approved a change in the name of BlackRock Credit Strategies Income Fund, effective as of May 1, 2020, to BlackRock Income Fund.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended March 31, 2020, 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?

Risk assets underperformed over thesix-month period, and the Fund’s positions in global high yield corporate credit, floating rate loan interests (“bank loans”), emerging market bonds, collateralized loan obligations, capital securities and securitized assets detracted from Fund performance.

The Fund’s interest rate exposure was the largest contributor to performance for the period. Holdings in U.S. investment grade corporate credit were also additive, as the sector benefited from interest rate declines.

The Fund held an elevated cash position as of March 31, 2020. Market liquidity became challenged amid the volatility, and the Fund maintained its elevated cash position in an effort to be flexible and tactical across fixed-income markets. The Fund’s cash position had a positive impact on Fund performance during the period.

Describe recent portfolio activity.

Throughout thesix-month period, the Fund navigated a period of heightened geopolitical risk, financial market volatility and declining interest rates. Over the period, the Fund reduced exposure to bank loans. The investment adviser remains constructive regarding the bank loan sector in the long term, but headwinds remain in the near term, and the Fund reduced the position amid the volatility. Exposure to U.S. corporate credit was increased over the period in the form of both high yield and investment grade securities. High yield corporate bonds began to look attractive after a period of underperformance, while the Fed’s stimulus measures provided support for investment grade securities.

Describe portfolio positioning at period end.

The Fund ended the period with a longer duration (and corresponding sensitivity to interest rate changes) relative to its historic range. The Fund also continued to hold meaningful allocations to below-investment-grade high yield corporate bonds and bank loans, although bank loans were held at a reduced level. The Fund also had increased exposure to U.S. investment grade corporate bonds, as support from the Fed provides a tailwind for the sector. In terms of credit quality, the Fund was positioned with anup-in-quality bias, focusing on companies with diverse, less cyclical cash flows given elevated uncertainty surrounding the coronavirus and its potential impact on earnings and global growth.

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 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2020 (continued) BlackRock Credit Strategies Income Fund

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
Corporate Bonds		62	%
Floating Rate Loan Interests		18
Asset-Backed Securities		10
Investment Companies		4
Non-Agency Mortgage-Backed Securities		3
Foreign Agency Obligations		1
Preferred Securities		1
Foreign Government Obligations		1
Common Stocks		—	(b)
U.S. Government Sponsored Agency Securities		—	(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

Credit Rating (a)	Percent of Total Investments (b)
AAA/Aaa(c)		1	%
AA/Aa		2
A		10
BBB/Baa		16
BB/Ba		22
B		31
CCC/Caa		5
CC/Ca		—	(d)
NR		13

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

^(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 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.

FUND SUMMARY 5

Fund Summary  as of March 31, 2020 (continued) BlackRock Credit Strategies Income Fund

Performance Summary for the Period Ended March 31, 2020

										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		5.29	%		5.17	%		(8.68	)%		(4.35	)%		N/A			2.31	%		N/A			4.17	%		N/A
Investor A		4.89			4.79			(8.80	)		(4.59	)		(6.97	)%		2.06			1.54	%		3.91			3.65	%
Investor C		4.22			4.09			(9.14	)		(5.39	)		(6.30	)		1.30			1.30			3.14			3.14
Class K		5.34			5.26			(8.66	)		(4.30	)		N/A			2.35			N/A			4.19			N/A
S&P/LSTA Leveraged Loan Index(c)		—			—			(11.54	)		(9.16	)		N/A			1.14			N/A			3.08			N/A
Bloomberg Barclays Global High Yield 100% Hedged USD Index(d)		—			—			(11.93	)		(9.22	)		N/A			2.66			N/A			5.63			N/A
Bloomberg Barclays U.S. CMBS Investment Grade Index(e)		—			—			0.86			6.13			N/A			3.19			N/A			4.75			N/A
JPMorgan CEMBI Broad Diversified Index(f)		—			—			(8.18	)		(3.39	)		N/A			3.20			N/A			4.70			N/A
Customized Reference Benchmark(g)								(7.73	)		(3.97	)		N/A			2.60			N/A			4.58			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 12 for a detailed description of share classes, including any related sales charges 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)  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.

^(d)  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.

^(e)  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.

^(f)  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.

^(g)  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 (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Beginning Account Value (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Institutional	$	1,000.00	$	913.20	$	2.97	$	1,000.00	$	1,021.90	$	3.13		0.62	%
Investor A		1,000.00		912.00		4.16		1,000.00		1,020.65		4.39		0.87
Investor C		1,000.00		908.60		7.73		1,000.00		1,016.90		8.17		1.62
Class K		1,000.00		913.40		2.73		1,000.00		1,022.15		2.88		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 366.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/366 (to reflect theone-half year period shown)

See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated.

6 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2020 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, 2020, the Fund underperformed the benchmark, the Bloomberg Barclays GNMA MBS Index.

What factors influenced performance?

The largest detractors from performance relative to the benchmark were the Fund’s macro overlay and MBS pool selection strategies. Specifically, macro positioning related to overall portfolio duration and corresponding interest rate sensitivity detracted, along with positioning around interest rate volatility and inflation. The Fund’s preference for high coupon, seasoned MBS pools relative to benchmark constituents also detracted.

Positive contributions to relative performance were led by the Fund’s active mortgage market trades. In this vein, overweighting GNMA30-year 4.5% coupon mortgage pools relative to GNMA30-year 3.5% coupon mortgage pools proved beneficial. In addition, anout-of-benchmark allocation to agency commercial mortgage-backed securities (“CMBS”) contributed positively, driven by outperformance in the fourth quarter of 2019.

Describe recent portfolio activity.

Over the period, the Fund shifted into lower coupons within its core GNMA allocation. The Fund increased its allocation to CMBS, primarily focusing on multifamily housing transactions. The Fund also maintained its small allocation to agency mortgage derivatives in the form of interest-only and inverse interest only position. Finally, the allocation to Treasury inflation-protected securities was increased.

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 Fund’s use of derivatives had a negative impact on Fund performance.

Describe portfolio positioning at period end.

The Fund ended the period with an overweight position to agency mortgage-backed securities (“MBS”), with a focus on lower coupon GNMAs and deeply seasoned, higher coupon conventional MBS. The Fund continued to hold an allocation to agency collateralized mortgage obligations with structures featuring prepayment-protected, seasoned collateral. The Fund continued to holdout-of-benchmark allocations in government-guaranteed,AAA-rated CMBS. The investment adviser held a long position with respect to inflation expectations on the view that a weaker dollar would bias inflation upward. Finally, the Fund was modestly underweight in 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 Securities		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

Credit Rating (a)	Percent of Total Investments (b)
AAA/Aaa(c)		100	%

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

^(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.

FUND SUMMARY 7

Fund Summary  as of March 31, 2020 (continued) BlackRock GNMA Portfolio

Performance Summary for the Period Ended March 31, 2020

										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		2.36	%		2.17	%		2.36	%		6.27	%		N/A			2.44	%		N/A			3.25	%		N/A
Service		2.11			1.92			2.34			6.13			N/A			2.15			N/A			2.92			N/A
Investor A		2.03			1.84			2.23			5.99			1.75	%		2.13			1.30	%		2.92			2.50	%
Investor C		1.37			1.21			1.85			5.22			4.22			1.39			1.39			2.15			2.15
Class K		2.41			2.29			2.38			6.33			N/A			2.48			N/A			3.28			N/A
Bloomberg Barclays GNMA MBS Index(c)		—			—			3.59			6.83			N/A			2.78			N/A			3.32			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 12 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 Government National Mortgage Association (“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 (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Ending Account Value (03/31/20)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,023.60	$	2.73	$	2.12	$	1,000.00	$	1,022.30	$	2.73	$	1,022.90	$	2.12
Service		1,000.00		1,023.40		4.00		3.39		1,000.00		1,021.05		3.99		1,021.65		3.39
Investor A		1,000.00		1,022.30		3.99		3.39		1,000.00		1,021.05		3.99		1,021.65		3.39
Investor C		1,000.00		1,018.50		7.77		7.17		1,000.00		1,017.30		7.77		1,017.90		7.16
Class K		1,000.00		1,023.80		2.48		1.87		1,000.00		1,022.55		2.48		1,023.15		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 366.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.54% for Institutional, 0.79% for Service, 0.79% for Investor A, 1.54% for Investor C and 0.49% for Class K), multiplied by the average account value over the period, multiplied by 183/366 (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 183/366 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated.

8 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2020 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, 2020, the Fund underperformed the benchmark, the Bloomberg Barclays U.S. Government/Mortgage Index.

What factors influenced performance?

The largest detractor from performance relative to the benchmark was the Fund’s allocation to securitized assets, most notably commercial mortgage-backed securities (“CMBS”). Most of the performance shortfall from CMBS exposure occurred during thesell-off in credit assets seen in the first quarter of 2020.

Positive contributions to relative performance were led by the Fund’s interest rate-based strategies. These included long exposure to U.S. inflation in early 2020 and positioning with respect to nominal duration and corresponding interest rate sensitivity as U.S. Treasury yields declined sharply late in the period given escalating coronavirus concerns. Relative value strategies within agency mortgage-backed securities (“MBS”) also contributed to performance, including trading the spread between agency mortgages and U.S. Treasury securities during the first quarter of 2020.

At period end, the Fund had a slightly elevated cash balance due to the investment adviser’s increasing preference for MBS exposure in forward contracts versus cash bonds. This elevated level of cash did not have any material impact on Fund performance.

Describe recent portfolio activity.

Active duration positioning was reduced over the period and by period end was neutral. The Fund had a slightly overweight position in agency MBS and increased positioning in agency CMBS. The Fund continued to hold a modest allocation to agency collateralized mortgage obligations (“CMOs”). Allocations to Treasury inflation-protected securities (“TIPS”) were increased over the period.

Describe portfolio positioning at period end.

The Fund ended the period with an overweight to agency MBS, on the view that current valuations are attractive relative to U.S. Treasuries and other high-quality fixed income sectors, and that fundamental headwinds, including increased prepayments, are lessening. The investment adviser also believed that the outlook is for increased domestic bank demand alongside a seasonal decrease in MBS supply. The Fund maintained allocations to agency CMBS and agency CMOs. Outside of the United States, the Fund maintained modest allocations to local currency emerging market sovereign debt in Asia, Latin America and Central Europe.

The Fund ended the period underweight agency MBS relative to the benchmark, while favoring lower coupons relative to higher coupons. The sector has since benefited from the Federal Reserve’s announcement of its MBS purchase program. The Fund continued to hold core allocations to CMBS and agency CMOs designed to benefit the income and interest rate risk profile of the Fund, along with an increased position in agency CMBS. The Fund was positioned neutrally with respect to nominal U.S. interest rates, while being modestly long both U.S. real (after inflation) rates and inflation expectations. Within the currency strategy, the Fund held a modest long position in the Australian dollar relative to the Canadian dollar on the view that there-opening of the Chinese economy should benefit the former currency given Australia’s sensitive to commodity prices.

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 9

Fund Summary  as of March 31, 2020 (continued) BlackRock U.S. Government Bond Portfolio

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
U.S. Government Sponsored Agency Securities		52	%
U.S. Treasury Obligations		44
Non-Agency Mortgage-Backed Securities		3
Asset-Backed Securities		1
Foreign Government Obligations		—	(b)
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

Credit Rating(a)	Percent of Total Investments (b)
AAA/Aaa(c)		99	%
AA/Aa		—	(d)
A		—	(d)
BBB/Baa		—	(d)
NR		1

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

^(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.

Performance Summary for the Period Ended March 31, 2020

										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		1.43	%		1.21	%		4.91	%		9.47	%		N/A			2.92	%		N/A			3.33	%		N/A
Service		1.23			1.02			4.68			9.21			N/A			2.68			N/A			3.09			N/A
Investor A		1.14			0.93			4.77			9.29			4.92	%		2.64			1.80	%		3.02			2.60	%
Investor C		0.45			0.17			4.38			8.39			7.39			1.86			1.86			2.22			2.22
Class K		1.48			1.35			4.93			9.53			N/A			2.94			N/A			3.34			N/A
Class R		0.94			0.63			4.64			9.02			N/A			2.39			N/A			2.77			N/A
Bloomberg Barclays U.S. Government/ Mortgage Index(c)		—			—			5.80			10.67			N/A			3.37			N/A			3.53			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 12 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.

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.

10 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31,2020 (continued) BlackRock U.S. Government Bond Portfolio

Expense Example

	Actual								Hypothetical (a)
					Including Interest Expense		Excluding Interest Expense				Including Interest Expense				Excluding Interest Expense
	Beginning Account Value (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Ending Account Value (03/31/20)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,049.10	$	3.64	$	2.31	$	1,000.00	$	1,021.45	$	3.59	$	1,022.75	$	2.28
Service		1,000.00		1,046.80		4.91		3.58		1,000.00		1,020.20		4.85		1,021.50		3.54
Investor A		1,000.00		1,047.70		4.91		3.58		1,000.00		1,020.20		4.85		1,021.50		3.54
Investor C		1,000.00		1,043.80		8.74		7.41		1,000.00		1,016.45		8.62		1,017.75		7.31
Class K		1,000.00		1,049.30		3.38		2.05		1,000.00		1,021.70		3.34		1,023.00		2.02
Class R		1,000.00		1,046.40		6.19		4.86		1,000.00		1,018.95		6.11		1,020.25		4.80

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.71% for Institutional, 0.96% for Service, 0.96% for Investor A, 1.71% for Investor C, 0.66% for Class K and 1.21% for Class R), multiplied by the average account value over the period, multiplied by 183/366 (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, 0.40% for Class K and 0.95% for Class R), multiplied by the average account value over the period, multiplied by 183/366 (to reflect theone-half year period shown).

See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated.

FUND SUMMARY 11

The Benefits and Risks of Leveraging

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

The 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, each Fund’s shareholders benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is distributed to each Fund’s shareholders, and the value of these portfolio holdings is reflected in each Fund’s per share NAV. However, in order to benefit shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other ongoing costs of leverage exceed 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.

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. Class K Shares performance shown prior to the Credit Strategies Income Fund’s Class K Shares inception date of August 1, 2016 and U.S. Government Bond Portfolio’s Class K Shares inception date of January 25, 2018 is that of Institutional Shares. The performance of each 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 Shares are 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.

On February 24, 2020, U.S Government Bond Portfolio’s issued and outstanding Investor C1 Shares converted into Investor A Shares with the same relative aggregate NAV.

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

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. Class R Shares performance shown prior to the U.S. Government Bond Portfolio’s Class R Shares inception date of July 18, 2011 is that of Institutional Shares (which have no distribution or service fees) and was 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 toblackrock.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 NAV on theex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), 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. With respect to each Fund’s voluntary waivers, the Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waivers may be reduced or discontinued at any time. With respect to each Fund’s contractual waivers, 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.

12 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

About Fund Performance  (continued)

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.

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, administration fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples on the previous pages (which are based on a hypothetical investment of $1,000 invested on October 1, 2019 and held through March 31, 2020) 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.

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.

ABOUT FUND PERFORMANCE / DISCLOSUREOF EXPENSES / DERIVATIVE FINANCIAL INSTRUMENTS 13

Schedule of Investments  (unaudited) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security	Par (000)			Value
Asset-Backed Securities — 8.6%
AIG CLO Ltd.,Series 2019-2A, Class A, (LIBOR USD 3 Month + 1.36%), 3.23%, 10/25/32(a)(b)		USD	3,000	$	2,701,107
AIMCO CLO,Series 2017-AA, Class C, (LIBOR USD 3 Month + 2.45%), 4.27%, 07/20/29(a)(b)			1,000		820,524
AIMCO CLO 10 Ltd.,Series 2019-10A, Class D, (LIBOR USD 3 Month + 3.55%), 5.35%, 07/22/32(a)(b)			750		514,152
Ajax Mortgage Loan Trust(b):
Series 2017-D, Class A, 3.75%, 12/25/57(c)			762		647,968
Series 2018-A, Class A, 3.85%, 04/25/58(c)			1,959		1,743,573
Series 2018-E, Class A, 4.38%, 06/25/58(d)			2,754		2,763,126
Series 2018-F, Class A, 4.38%, 11/25/58(c)(d)			2,873		2,442,472
Series 2018-G, Class A, 4.38%, 06/25/57(c)(d)			2,846		2,832,258
Series 2019-E, Class A, 3.00%, 09/25/59(e)			2,645		2,372,733
Series 2019-E, Class B, 4.88%, 09/25/59(e)			280		216,559
Series 2019-E, Class C, 0.00%, 09/25/59(c)			668		302,871
Allegro CLOII-S Ltd.,Series 2014-1RA, Class B, (LIBOR USD 3 Month + 2.15%), 3.97%, 10/21/28(a)(b)			1,000		822,764
ALM Ltd.,Series 2020-1A, Class A2, (LIBOR USD 3 Month + 1.85%), 3.36%, 10/15/29(a)(b)			3,000		2,553,613
ALM XVI Ltd.(a)(b):
Series 2015-16A, Class BR2, (LIBOR USD 3 Month + 1.90%), 3.73%, 07/15/27			1,200		993,186
Series 2015-16A, Class CR2, (LIBOR USD 3 Month + 2.70%), 4.53%, 07/15/27			1,000		779,183
Anchorage Capital CLO4-R Ltd.(a)(b):
Series 2014-4RA, Class C, (LIBOR USD 3 Month + 1.85%), 3.65%, 01/28/31			1,000		819,871
Series 2014-4RA, Class D, (LIBOR USD 3 Month + 2.60%), 4.40%, 01/28/31			1,000		700,407
Anchorage Capital CLO Ltd.,Series 2013-1A, Class CR, (LIBOR USD 3 Month + 3.20%), 5.05%, 10/13/30(a)(b)			1,000		736,074
Anchorage Capital Europe CLO 2 DAC, Series 2X, Class E, (EURIBOR 3 Month + 5.66%), 5.66%, 05/15/31(a)		EUR	140		100,940
Apidos CLO XX(a)(b):
Series 2015-20A, Class BRR, (LIBOR USD 3 Month + 1.95%), 3.79%, 07/16/31		USD	1,000		819,211
Series 2015-20A, Class CR, (LIBOR USD 3 Month + 2.95%), 4.79%, 07/16/31			1,500		1,066,604
Arbour CLO IV DAC, Series 4X, Class E, (EURIBOR 3 Month + 5.60%), 5.60%, 01/15/30(a)		EUR	183		133,066
Ares XLII CLO Ltd.,Series 2017-42A, Class D, (LIBOR USD 3 Month + 3.45%), 5.25%, 01/22/28(a)(b)		USD	1,000		764,564
Ares XLIV CLO Ltd.,Series 2017-44A, Class C, (LIBOR USD 3 Month + 3.45%), 5.28%, 10/15/29(a)(b)			1,000		741,375
Ares XLIX CLO Ltd.,Series 2018-49A, Class D, (LIBOR USD 3 Month + 3.00%), 4.80%, 07/22/30(a)(b)			1,000		709,938
Ares XXVII CLO Ltd.,Series 2013-2A, Class DR, (LIBOR USD 3 Month + 3.75%), 5.55%, 07/28/29(a)(b)			2,000		1,534,799
Ares XXXVII CLO Ltd.(a)(b):
Series 2015-4A, Class BR, (LIBOR USD 3 Month + 1.80%), 3.63%, 10/15/30			250		204,881
Series 2015-4A, Class CR, (LIBOR USD 3 Month + 2.65%), 4.48%, 10/15/30			1,000		709,089
Assurant CLO IV Ltd.,Series 2019-1A, Class D, (LIBOR USD 3 Month + 3.85%), 5.67%, 04/20/30(a)(b)			1,000		765,696

Security	Par (000)			Value
Asset-Backed Securities (continued)
Atrium IX, Series 9A, Class DR, (LIBOR USD 3 Month + 3.60%), 5.21%, 05/28/30(a)(b)		USD	1,000	$	760,346
Atrium XV, Series 15A, Class D, (LIBOR USD 3 Month + 3.00%), 4.81%, 01/23/31(a)(b)			500		338,945
Avoca CLO XV DAC, Series 15X, Class ER, (EURIBOR 3 Month + 4.13%), 4.13%, 04/15/31(a)		EUR	260		173,556
Bear Stearns Asset-Backed Securities I Trust,Series 2007-HE5, Class 1A4, (LIBOR USD 1 Month + 0.30%), 1.25%, 06/25/47(a)		USD	3,300		2,717,764
Benefit Street Partners CLO XII Ltd.,Series 2017-12A, Class C, (LIBOR USD 3 Month + 3.05%), 4.88%, 10/15/30(a)(b)			1,250		928,109
Cairn CLO IV BV,Series 2014-4X, Class ERR, (EURIBOR 3 Month + 5.88%), 5.88%, 04/30/31(a)		EUR	100		76,412
Carlyle Global Market Strategies Euro CLO Ltd.,Series 2014-2X, Class DRR, (EURIBOR 3 Month + 5.70%), 5.70%, 11/17/31(a)			117		83,697
CBAM Ltd.,Series 2017-3A, Class E1, (LIBOR USD 3 Month + 6.50%), 8.34%, 10/17/29(a)(b)		USD	1,000		637,533
Cedar Funding II CLO Ltd.,Series 2013-1A, Class DR, (LIBOR USD 3 Month + 3.60%), 4.60%, 06/09/30(a)(b)			1,000		793,625
Cedar Funding IV CLO Ltd.,Series 2014-4A, Class DR, (LIBOR USD 3 Month + 3.65%), 5.46%, 07/23/30(a)(b)			1,000		772,917
Cedar Funding X CLO Ltd.,Series 2019-10A, Class D, (LIBOR USD 3 Month + 3.85%), 5.98%, 10/20/32(a)(b)			1,000		696,688
CIFC Funding Ltd.(a)(b):
Series 2013-4A, Class DRR, (LIBOR USD 3 Month + 2.80%), 4.59%, 04/27/31			1,000		706,899
Series 2017-1A, Class D, (LIBOR USD 3 Month + 3.50%), 5.32%, 04/23/29			1,000		764,616
Series 2017-5A, Class B, (LIBOR USD 3 Month + 1.85%), 3.69%, 11/16/30			1,500		1,218,540
CVC Cordatus Loan Fund VIII DAC, Series 8X, Class F, (EURIBOR 3 Month + 7.65%), 4.90%, 04/23/30(a)		EUR	113		79,072
Dryden 32 Euro CLO BV,Series 2014-32X, Class ER, (EURIBOR 3 Month + 5.29%), 5.29%, 08/15/31(a)			140		102,275
Dryden 50 Senior Loan Fund,Series 2017-50A, Class C, (LIBOR USD 3 Month + 2.25%), 4.08%, 07/15/30(a)(b)		USD	2,000		1,632,263
Flatiron CLO 19 Ltd.(a)(b):
Series 2019-1A, Class C, (LIBOR USD 3 Month + 2.70%), 4.59%, 11/16/32			1,000		822,031
Series 2019-1A, Class D, (LIBOR USD 3 Month + 3.90%), 5.79%, 11/16/32			1,500		1,054,485
Galaxy XVIII CLO Ltd.,Series 2018-28A, Class C, (LIBOR USD 3 Month + 1.95%), 3.78%, 07/15/31(a)(b)			500		396,303
GoldenTree Loan Management US CLO 5 Ltd.,Series 2019-5A, Class D, (LIBOR USD 3 Month + 3.85%), 5.67%, 10/20/32(a)(b)			1,000		724,933
Greene King Finance plc, Series B1, 5.70%, 12/15/34(e)		GBP	100		114,018
Greywolf CLO V Ltd.,Series 2015-1A, Class CR, (LIBOR USD 3 Month + 3.00%), 4.79%, 01/27/31(a)(b)		USD	1,000		712,715
Gulf Stream Meridian 1 Ltd.(a)(b)(c):
Series 2020-IA, Class A1, (LIBOR USD 3 Month + 1.37%), 3.01%, 04/15/33			3,000		2,996,700

14 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security	Par (000)			Value
Asset-Backed Securities (continued)
Series 2020-IA, Class B, (LIBOR USD 3 Month + 2.00%), 3.64%, 04/15/33		USD	2,000	$	1,996,800
Harvest CLO XVI DAC, Series 16X, Class ER, (EURIBOR 3 Month + 5.57%), 5.57%, 10/15/31(a)		EUR	330		234,072
Kayne CLO I Ltd.,Series 2018-1A, Class C, (LIBOR USD 3 Month + 2.00%), 3.83%, 07/15/31(a)(b)		USD	1,000		801,846
Legacy Mortgage Asset Trust, Series 2019- SL2, Class A, 3.38%, 02/25/59(b)(c)(d)			3,071		3,094,382
Madison Park Funding XV Ltd., Series 2014- 15A, Class CR, (LIBOR USD 3 Month + 3.45%), 5.24%, 01/27/26(a)(b)			1,000		800,035
Mariner CLO LLC,Series 2015-1A, Class CR2, (LIBOR USD 3 Month + 1.90%), 3.15%, 04/20/29(a)(b)(c)			2,000		1,995,800
Mariner CLO Ltd.,Series 2017-4A, Class D, (LIBOR USD 3 Month + 3.05%), 4.84%, 10/26/29(a)(b)			1,300		946,784
Morgan Stanley ABS Capital I, Inc. Trust,Series 2007-HE6, Class A2, (LIBOR USD 1 Month + 0.14%), 1.09%, 05/25/37(a)			3,534		2,895,957
Neuberger Berman CLO XXII Ltd.,Series 2016-22A, Class CR, (LIBOR USD 3 Month + 2.20%), 4.04%, 10/17/30(a)(b)			1,000		802,599
Neuberger Berman CLO XXIII Ltd.,Series 2016-23A, Class DR, (LIBOR USD 3 Month + 2.90%), 4.74%, 10/17/27(a)(b)			500		371,025
OCP CLO Ltd.(a)(b):
Series 2013-4A, Class CRR, (LIBOR USD 3 Month + 3.00%), 4.80%, 04/24/29			1,000		749,673
Series 2015-8A, Class CR, (LIBOR USD 3 Month + 2.80%), 4.64%, 04/17/27			500		402,575
OCP Euro CLO DAC(a):
Series 2017-2X, Class E, (EURIBOR 3 Month + 5.00%), 5.00%, 01/15/32		EUR	148		101,463
Series 2017-2X, Class F, (EURIBOR 3 Month + 6.40%), 6.40%, 01/15/32			100		57,241
Octagon Investment Partners 28 Ltd.,Series 2016-1A, Class C1R, (LIBOR USD 3 Month + 2.25%), 4.05%, 10/24/30(a)(b)		USD	1,000		824,686
OHA Credit Funding 4 Ltd.,Series 2019-4A, Class D, (LIBOR USD 3 Month + 3.75%), 5.69%, 10/22/32(a)(b)			1,000		697,001
OHA Credit Partners XI Ltd.,Series 2015-11A, Class DR, (LIBOR USD 3 Month + 2.95%), 4.77%, 01/20/32(a)(b)			500		343,154
Option One Mortgage Loan Trust, Series 2007- FXD1, Class 2A1, 5.87%, 01/25/37(e)			1,193		1,034,723
OZLM Funding IV Ltd.,Series 2013-4A, Class BR, (LIBOR USD 3 Month + 2.20%), 4.00%, 10/22/30(a)(b)			1,000		817,734
OZLM VI Ltd.(a)(b):
Series 2014-6A, Class B1S, (LIBOR USD 3 Month + 2.10%), 3.94%, 04/17/31			1,000		820,222
Series 2014-6A, Class CS, (LIBOR USD 3 Month + 3.13%), 4.97%, 04/17/31			1,000		716,892
OZLME BV, Series 1X, Class ER, (EURIBOR 3 Month + 5.90%), 5.90%, 01/18/30(a)		EUR	158		116,980
OZLME II DAC, Series 2X, Class E, (EURIBOR 3 Month + 4.90%), 4.90%, 10/15/30(a)			100		67,479
Palmer Square CLO Ltd.(a)(b):
Series 2013-2A, Class BRR, (LIBOR USD 3 Month + 2.20%), 4.04%, 10/17/31		USD	2,000		1,643,297
Series 2015-1A, Class BR2, (LIBOR USD 3 Month + 2.25%), 3.95%, 05/21/29			500		410,709

Security	Par (000)			Value
Asset-Backed Securities (continued)
Series 2015-2A, Class CR2, (LIBOR USD 3 Month + 2.75%), 4.57%, 07/20/30		USD	500	$	349,861
Series 2018-2A, Class A2, (LIBOR USD 3 Month + 1.65%), 3.49%, 07/16/31			1,000		894,197
Series 2019-1A, Class B, (LIBOR USD 3 Month + 2.65%), 4.58%, 11/14/32			1,000		819,610
Series 2019-1A, Class C, (LIBOR USD 3 Month + 3.75%), 5.68%, 11/14/32			1,000		695,461
Palmer Square Loan Funding Ltd.,Series 2019-3A, Class A2, (LIBOR USD 3 Month + 1.60%), 3.29%, 08/20/27(a)(b)			1,500		1,302,397
Park Avenue Institutional Advisers CLO Ltd.,Series 2019-1A, Class C, (LIBOR USD 3 Month + 3.85%), 5.54%, 05/15/32(a)(b)			1,500		1,060,835
Progress Residential Trust, Series 2019-SFR4, Class E, 3.44%, 10/17/36(b)			3,000		2,595,036
Regata XII Funding Ltd.,Series 2019-1A, Class D, (LIBOR USD 3 Month + 3.75%), 5.75%, 10/15/32(a)(b)			1,000		706,336
Regatta VII Funding Ltd.,Series 2016-1A, Class DR, (LIBOR USD 3 Month + 2.75%), 3.87%, 12/20/28(a)(b)			1,000		728,194
Rockford Tower CLO Ltd.(a)(b):
Series 2017-3A, Class A, (LIBOR USD 3 Month + 1.19%), 3.01%, 10/20/30.			1,500		1,400,719
Series 2018-2A, Class C, (LIBOR USD 3 Month + 2.20%), 4.02%, 10/20/31			500		409,154
Series 2018-2A, Class D, (LIBOR USD 3 Month + 3.10%), 4.92%, 10/20/31			500		350,180
Series 2019-1A, Class D, (LIBOR USD 3 Month + 3.85%), 5.67%, 04/20/32			500		363,029
RRE 1 Loan Management DAC, Series 1X, Class E, (EURIBOR 3 Month + 5.95%), 5.95%, 04/15/32(a)		EUR	300		197,406
TCW CLO Ltd.(a)(b)(c):
Series 2017-1A, Class CR, (LIBOR USD 3 Month + 2.05%), 3.63%, 07/29/29		USD	1,000		1,000,000
Series 2017-1A, Class DR, (LIBOR USD 3 Month + 3.15%), 4.73%, 07/29/29			1,000		1,000,000
Texas Competitive Electric Holdings Co. LLC, Escrow, 5.10%, 10/10/17(c)(f)(g)			815		—
TICP CLO IX Ltd.,Series 2017-9A, Class D, (LIBOR USD 3 Month + 2.90%), 4.72%, 01/20/31(a)(b)			1,000		698,599
TICP CLO XI Ltd.(a)(b):
Series 2018-11A, Class C, (LIBOR USD 3 Month + 2.15%), 3.97%, 10/20/31			600		492,196
Series 2018-11A, Class D, (LIBOR USD 3 Month + 3.05%), 4.87%, 10/20/31			550		379,556
TICP CLO XV Ltd.,Series 2020-15A, Class A, (LIBOR USD 3 Month + 1.28%), 2.92%, 04/20/33(a)(b)			3,500		3,257,113
Trestles CLO III Ltd.,Series 2020-3A, Class B1, (LIBOR USD 3 Month + 1.85%), 3.49%, 01/20/33(a)(b)(c)			1,000		992,500
Unique Pub Finance Co. plc (The), Series A4, 5.66%, 06/30/27.		GBP	62		84,193
Vericrest Opportunity Loan Trust, Series 2019- NPL2, Class A1, 3.97%, 02/25/49(b)(e)		USD	2,372		2,099,886
Voya CLO Ltd.,Series 2017-1A, Class C, (LIBOR USD 3 Month + 3.33%), 5.17%, 04/17/30(a)(b)			1,000		732,290

SCHEDULES OF INVESTMENTS 15

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security	Par (000)			Value
Asset-Backed Securities (continued)
York CLO 1 Ltd.,Series 2014-1A, Class DRR, (LIBOR USD 3 Month + 3.01%), 4.81%, 10/22/29(a)(b)		USD	1,000	$	738,905
Total Asset-Backed Securities — 8.6% (Cost: $117,202,185)					97,707,828
	Shares
Common Stocks — 0.2%
Aerospace & Defense — 0.0%
Bombardier, Inc., Class B(g)			105,468		34,099
Chemicals — 0.1%
Element Solutions, Inc.(g)			51,178		427,848
Commercial Services & Supplies — 0.0%
Preston Holdings LLC(c)(g)			1,227		9,816
Consumer Finance — 0.0%
Arrow Global Group plc.			10,661		13,963
Diversified Telecommunication Services — 0.0%
Telecom Italia SpA			109,444		42,760
Electric Utilities — 0.0%
TexGen Power LLC(g)			1,424		44,144
Energy Equipment & Services — 0.0%
McDermott International, Inc.(g)			4,194		243
Equity Real Estate Investment Trusts (REITs) — 0.1%
Gaming and Leisure Properties, Inc.			10,934		302,981
VICI Properties, Inc.			29,775		495,457
					798,438
Health Care Providers & Services — 0.0%
New Millennium Holdco, Inc.(c)(g)			3,880		213
Life Sciences Tools & Services — 0.0%
PPD, Inc.(g)			1,022		18,202
Machinery — 0.0%(g)
AFGlobal Corp.(c)			897		—
Ameriforge Group, Inc.			283		14,150
					14,150
Marine — 0.0%
Projector SA(c)(g)(h)			1,227		—
Media — 0.0%
Clear Channel Outdoor Holdings, Inc.(g)			76,920		49,229
Metals & Mining — 0.0%
Constellium SE, Class A(g)			24,675		128,557
Pharmaceuticals — 0.0%
Bausch Health Cos., Inc.(g)			17,104		265,112

Security	Shares			Value
Software — 0.0%
Avaya Holdings Corp.(g)			12	$	97
Total Common Stocks — 0.2% (Cost: $2,966,550)					1,846,871
	Par (000)
Corporate Bonds — 54.8%
Aerospace & Defense — 1.5%
Arconic, Inc., 5.13%, 10/01/24			710		701,125
Bombardier, Inc.(b):
8.75%, 12/01/21			351		291,769
5.75%, 03/15/22			46		34,845
6.00%, 10/15/22			19		14,250
6.13%, 01/15/23			202		142,410
7.50%, 12/01/24			171		115,425
7.50%, 03/15/25			1,009		720,930
7.88%, 04/15/27			908		605,954
BWX Technologies, Inc., 5.38%, 07/15/26(b)			630		604,800
F-Brasile SpA, Series XR, 7.38%, 08/15/26(b)			400		398,000
Fresenius SE & Co. KGaA, 1.63%, 10/08/27		EUR	250		273,026
General Dynamics Corp., 4.25%, 04/01/50		USD	960		1,208,824
Huntington Ingalls Industries, Inc.(b):
3.84%, 05/01/25			180		185,304
4.20%, 05/01/30			290		300,589
Kratos Defense & Security Solutions, Inc., 6.50%, 11/30/25(b)			366		334,890
L3Harris Technologies, Inc., 4.40%, 06/15/28(b)			300		319,348
Moog, Inc., 4.25%, 12/15/27(b)			260		234,650
Northrop Grumman Corp., 5.25%, 05/01/50			2,320		3,137,307
Signature Aviation US Holdings, Inc.(b):
5.38%, 05/01/26			294		284,445
4.00%, 03/01/28			508		458,622
SSL Robotics LLC, 9.75%, 12/31/23(b)			126		129,780
TransDigm UK Holdings plc, 6.88%, 05/15/26			241		224,130
TransDigm, Inc., 6.25%, 03/15/26(b)			6,064		6,041,260
United Technologies Corp., 4.63%, 11/16/48			120		141,812
					16,903,495
Air Freight & Logistics — 0.0%
FedEx Corp., 4.05%, 02/15/48			155		136,242
Auto Components — 0.7%
Allison Transmission, Inc.(b):
5.00%, 10/01/24			9		8,730
5.88%, 06/01/29			537		504,780
Dealer Tire LLC, 8.00%, 02/01/28(b)			468		374,400
Icahn Enterprises LP:
6.25%, 02/01/22			279		279,697
6.75%, 02/01/24			66		63,690
4.75%, 09/15/24			93		85,533
6.38%, 12/15/25			125		118,125
6.25%, 05/15/26			566		534,870
5.25%, 05/15/27			562		519,148
IHO Verwaltungs GmbH, 3.88%, (3.88% Cash or 4.63% PIK), 05/15/27(i)(j)		EUR	200		167,641
Panther BF Aggregator 2 LP:
4.38%, 05/15/26			634		580,368
6.25%, 05/15/26(b)		USD	1,715		1,620,675
8.50%, 05/15/27(b)			2,624		2,289,177
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		196,500

16 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security	Par (000)			Value
Auto Components (continued)
ZF North America Capital, Inc., 4.00%, 04/29/20(b)		USD	750	$	746,250
					8,089,584
Automobiles — 0.1%
General Motors Co., 5.00%, 10/01/28			500		430,820
Tesla, Inc., 5.30%, 08/15/25(b)			653		612,188
				1,043,008
Banks — 4.6%
AIB Group plc, (EUR Swap Annual 5 Year + 5.70%), 5.32%(a)(k)		EUR	400		344,264
Allied Irish Banks plc, (EUR Swap Annual 5 Year + 7.34%), 7.38%(a)(k)			200		214,062
Banco Bilbao Vizcaya Argentaria SA:
(EUR Swap Annual 5 Year + 5.66%), 5.87%(a)(k)			600		559,170
1.00%, 06/21/26			600		609,111
Banco de Credito del Peru, (LIBOR USD 3 Month + 7.71%), 6.87%, 09/16/26(a)		USD	630		643,191
Banco de Sabadell SA(a)(k):
(EUR Swap Annual 5 Year + 6.41%), 6.50%		EUR	200		160,185
(EUR Swap Annual 5 Year + 6.05%), 6.12%			200		160,472
Banco General SA, 4.13%, 08/07/27		USD	500		457,969
Banco Inbursa SA Institucion De Banca Multiple Grupo Financiero Inbursa:
4.13%, 06/06/24			653		610,963
4.38%, 04/11/27			170		150,875
Banco Mercantil del Norte SA(a)(b)(k):
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.97%), 6.75%			340		259,318
(US Treasury Yield Curve Rate T Note Constant Maturity 10 Year + 5.47%), 7.50%			340		258,400
Banco Santander SA(a)(k):
(EUR Swap Annual 5 Year + 6.80%), 6.75%		EUR	200		197,943
(EUR Swap Annual 5 Year + 4.53%), 4.37%			400		328,789
Bancolombia SA, 3.00%, 01/29/25		USD	315		280,350
Bangkok Bank PCL, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.90%), 3.73%, 09/25/34(a)			1,100		946,389
Bank of America Corp.:
(LIBOR USD 3 Month + 0.87%), 2.46%, 10/22/25(a)			530		534,950
Series L, 4.18%, 11/25/27			2,000		2,067,326
(LIBOR USD 3 Month + 1.18%), 3.19%, 07/23/30(a)			850		867,035
Bank of East Asia Ltd. (The), (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.26%), 5.87%(a)(k)			1,477		1,467,148
Bank of Ireland Group plc, 1.38%, 08/29/23		EUR	150		156,925
Bankia SA(a)(k):
(EUR Swap Annual 5 Year + 5.82%), 6.00%			200		168,305
(EUR Swap Annual 5 Year + 6.22%), 6.37%			400		344,032
Barclays plc:
4.38%, 09/11/24		USD	200		199,299
(EUR Swap Annual 1 Year + 0.78%), 1.38%, 01/24/26(a)		EUR	375		382,634
BBVA Bancomer SA, 4.38%, 04/10/24		USD	650		638,658
BNP Paribas SA, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.94%), 4.50%(a)(b)(k)			2,990		2,302,300
Burgan Bank SAK, (USD Swap Semi 5 Year + 4.01%), 5.75%(a)(k)			256		225,600
Burgan Senior SPC Ltd., 3.13%, 09/14/21			500		487,187

Security	Par (000)			Value
Banks (continued)
CaixaBank SA(a)(k):
(EUR Swap Annual 5 Year + 6.50%), 6.75%		EUR	200	$	179,221
(EUR Swap Annual 5 Year + 4.50%), 5.25%			600		491,342
CBQ Finance Ltd., 3.25%, 06/13/21		USD	300		299,531
Chong Hing Bank Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.86%), 5.70%(a)(k)			250		212,891
CIT Group, Inc., 5.00%, 08/01/23			642		617,675
Citigroup, Inc.:
(LIBOR USD 3 Month + 1.02%), 4.04%, 06/01/24(a)			500		522,504
(LIBOR USD 3 Month + 0.90%), 3.35%, 04/24/25(a)			610		625,066
4.30%, 11/20/26			500		523,063
Commerzbank AG:
8.13%, 09/19/23			200		209,086
4.00%, 03/23/26		EUR	150		151,683
Cooperatieve Rabobank UA, (EUR Swap Annual 5 Year + 4.10%), 4.62%(a)(k)			200		192,456
Credit Agricole SA:
(EUR Swap Annual 5 Year + 5.12%), 6.50%(a)(k)			200		209,385
3.25%, 01/14/30(b)		USD	370		349,318
DBS Group Holdings Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.92%), 3.30%(a)(k)			995		895,500
Discover Bank:
2.45%, 09/12/24			620		585,179
(USD Swap Semi 5 Year + 1.73%), 4.68%, 08/09/28(a)			465		473,467
Emirates NBD Bank PJSC, (USD Swap Semi 6 Year + 3.66%), 6.13%(a)(k)			257		217,004
HSBC Holdings plc:
(LIBOR USD 3 Month + 0.99%), 3.95%, 05/18/24(a)			285		292,037
4.95%, 03/31/30			837		914,003
(LIBOR USD 3 Month + 1.61%), 3.97%, 05/22/30(a)			510		522,410
ICICI Bank Ltd., 4.00%, 03/18/26			600		577,200
IKB Deutsche Industriebank AG, (EUR Swap Annual 5 Year + 3.62%), 4.00%, 01/31/28(a)		EUR	200		192,484
ING Groep NV, (USD Swap Rate 5 Year + 4.20%), 6.75%(a)(k)		USD	325		278,688
Intercorp Financial Services, Inc., 4.13%, 10/19/27			500		449,219
Intercorp Peru Ltd., 3.88%, 08/15/29(b)			351		301,366
Intesa Sanpaolo SpA:
1.00%, 11/19/26		EUR	300		294,934
(EUR Swap Annual 5 Year + 7.19%), 7.75%(a)(k)			400		405,698
JPMorgan Chase & Co.:
(LIBOR USD 3 Month + 0.89%), 2.70%, 07/23/24(a)		USD	1,000		902,304
3.63%, 12/01/27			300		315,910
(SOFR + 1.51%), 2.74%, 10/15/30(a)			1,500		1,519,705
Series W, (LIBOR USD 3 Month + 1.00%), 2.69%, 05/15/47(a)			1,000		680,000
Kasikornbank PCL, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.70%), 3.34%, 10/02/31(a)			830		753,225
Kookmin Bank, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.64%), 4.35%(a)(k)			500		478,906

SCHEDULES OF INVESTMENTS 17

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security	Par (000)			Value
Banks (continued)
Lloyds Banking Group plc(a):
(US Treasury Yield Curve Rate T Note Constant Maturity 1 Year + 1.00%), 2.44%, 02/05/26		USD	200	$	188,855
(EUR Swap Annual 1 Year + 3.75%), 1.00%, 04/01/26		EUR	150		171,494
Nanyang Commercial Bank Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.21%), 5.00%(a)(k)		USD	200		181,605
National Westminster Bank plc, Series C, (LIBOR USD 3 Month + 0.25%), 1.86%(a)(k)			200		153,000
Nordea Bank Abp, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.11%), 6.63%(a)(b)(k)			585		529,425
QIIB Tier 1 Sukuk Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.19%), 4.88%(a)(k)			500		450,000
Royal Bank of Scotland Group plc(a):
(USD Swap Semi 5 Year + 7.60%), 8.62%(k)			995		970,125
(LIBOR USD 3 Month + 1.76%), 4.27%, 03/22/25			630		656,226
Santander UK plc, 5.00%, 11/07/23(b)			352		354,654
Shinhan Financial Group Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.05%), 5.87%(a)(k)			1,000		1,040,000
Shizuoka Bank Ltd. (The), (LIBOR USD 3 Month - 0.50%), 1.29%, 01/25/23(a)(l)			100		93,603
Societe Generale SA, (USD Swap Semi 5 Year + 6.24%), 7.38%(a)(b)(k)			200		183,930
TMB Bank PCL, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.26%), 4.90%(a)(k)			256		217,600
UniCredit SpA(a)(k):
(EUR Swap Annual 5 Year + 9.30%), 9.25%		EUR	200		206,879
(EURIBOR Swap Rate 5 Year + 7.33%), 7.50%			400		399,805
Unione di Banche Italiane SpA, (EUR Swap Annual 5 Year + 5.75%), 5.87%, 03/04/29(a)			100		104,176
Wells Fargo & Co.:
5.38%, 11/02/43		USD	500		586,134
(LIBOR USD 3 Month + 4.24%), 5.01%, 04/04/51(a)			11,000		14,044,821
Woori Bank, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.66%), 4.25%(a)(k)			256		240,812
					52,428,454
Beverages — 0.2%
Anheuser-Busch InBev Worldwide, Inc., 4.60%, 04/15/48			750		793,466
Coca-Cola European Partners plc:
(EURIBOR 3 Month + 0.18%), 0.00%, 11/16/21(a)		EUR	100		110,030
1.75%, 03/27/26			100		112,046
Coca-Cola Icecek A/S, 4.22%, 09/19/24		USD	250		222,813
Embotelladora Andina SA, 3.95%, 01/21/50(b)			400		336,000
Fomento Economico Mexicano SAB de CV, 3.50%, 01/16/50			346		324,534
Sunshine Mid BV, 6.50%, 05/15/26		EUR	100		103,121
					2,002,010
Biotechnology — 0.1%
AbbVie, Inc.:
4.88%, 11/14/48		USD	500		580,063
4.25%, 11/21/49(b)			295		313,390
					893,453

Security	Par (000)			Value
Building Products — 0.1%
Advanced Drainage Systems, Inc., 5.00%, 09/30/27(b)		USD	206	$	183,340
Builders FirstSource, Inc., 5.00%, 03/01/30(b)			158		142,200
Cie de Saint-Gobain, 2.38%, 10/04/27		EUR	200		218,124
CPG Merger Sub LLC, 8.00%, 10/01/21(b)		USD	3		2,911
JELD-WEN, Inc.(b):
4.63%, 12/15/25			151		132,880
4.88%, 12/15/27			6		5,295
Masonite International Corp.(b):
5.75%, 09/15/26			25		24,500
5.38%, 02/01/28			100		98,280
Standard Industries, Inc.:
5.38%, 11/15/24(b)			111		107,115
6.00%, 10/15/25(b)			403		396,068
2.25%, 11/21/26		EUR	397		354,817
					1,665,530
Capital Markets — 1.9%
ADCB Finance Cayman Ltd., 4.00%, 03/29/23(b)		USD	240		236,250
AG Issuer LLC, 6.25%, 03/01/28(b)			40		33,600
Altice France Holding SA, 10.50%, 05/15/27(b)			3,008		3,173,440
CCTI Ltd., 3.63%, 08/08/22			710		726,197
Cerah Capital Ltd., 0.00%, 08/08/24(l)(m)			1,300		1,129,999
Cindai Capital Ltd., 0.00%, 02/08/23(l)(m)			900		854,898
Credit Suisse Group AG(a):
(USD Swap Semi 5 Year + 4.60%), 7.50%(b)(k)			200		184,320
(USD Swap Semi 5 Year + 3.46%), 6.25%(k)			200		184,250
(SOFR + 1.56%), 2.59%, 09/11/25(b)			1,500		1,425,062
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.82%), 6.37%(b)(k)			350		307,195
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.29%), 5.10%(b)(k)			935		722,287
Deutsche Bank AG, 3.15%, 01/22/21			500		488,475
Goldman Sachs Bank USA, (SOFR + 0.60%), 0.61%, 05/24/21(a)			1,870		1,818,859
Goldman Sachs Group, Inc. (The), Series R, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.22%), 4.95%(a)(k)			1,130		1,005,700
Huarong Finance 2019 Co. Ltd.:
4.50%, 05/29/29			500		511,406
3.38%, 02/24/30			800		756,750
Huarong Finance Co. Ltd., 3.88%, 11/13/29			1,000		974,688
Joy Treasure Assets Holdings, Inc., 4.50%, 03/20/29			200		218,375
Morgan Stanley(a):
(SOFR + 1.15%), 2.72%, 07/22/25			1,040		1,042,034
(SOFR + 3.12%), 3.62%, 04/01/31			1,675		1,751,951
MSCI, Inc.(b):
4.75%, 08/01/26			24		23,640
4.00%, 11/15/29			64		63,576
3.63%, 09/01/30			82		77,798
Owl Rock Capital Corp.:
4.00%, 03/30/25			90		69,396
3.75%, 07/22/25			415		344,248
Poseidon Finance 1 Ltd., 0.00%, 02/01/25(l)(m)			1,490		1,404,918
SBI Holdings, Inc., 0.00%, 09/13/23(l)(m)		JPY	110,000		939,600
State Street Corp., (SOFR + 2.65%), 3.15%, 03/30/31(a)(b)		USD	630		644,461
SURA Asset Management SA, 4.88%, 04/17/24			400		388,375
UBS AG, (EURIBOR 3 Month + 0.50%), 0.11%, 04/23/21(a)		EUR	300		328,031
Xi Yang Overseas Ltd., 4.30%, 06/05/24		USD	355		365,927
					22,195,706

18 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Chemicals — 1.2%
Air Liquide Finance SA, 1.00%, 04/02/25	EUR		100	$	112,435
Arkema SA, 0.75%, 12/03/29			100		101,801
Ashland Services BV, 2.00%, 01/30/28			218		208,575
Atotech Alpha 2 BV, 8.75%, (8.75% Cash or 9.50% PIK), 06/01/23(b)(i)	USD		1,610		1,449,000
Atotech Alpha 3 BV, 6.25%, 02/01/25(b)			1,868		1,720,895
Axalta Coating Systems LLC, 4.88%, 08/15/24(b)			300		288,000
Blue Cube Spinco LLC:
9.75%, 10/15/23			174		180,742
10.00%, 10/15/25			659		695,311
Braskem Netherlands Finance BV, 3.50%, 01/10/23			500		442,969
Chemours Co. (The):
6.63%, 05/15/23			1,229		1,044,650
5.38%, 05/15/27			72		55,069
Dow Chemical Co. (The), 5.55%, 11/30/48			125		140,362
Ecolab, Inc., 4.80%, 03/24/30			105		117,945
Element Solutions, Inc., 5.88%, 12/01/25(b)			1,763		1,727,740
Equate Petrochemical BV, 4.25%, 11/03/26			400		379,750
Gates Global LLC, 6.25%, 01/15/26(b)			473		418,605
GCP Applied Technologies, Inc., 5.50%, 04/15/26(b)			432		401,760
Monitchem HoldCo 2 SA, 9.50%, 09/15/26	EUR		100		93,140
Monitchem HoldCo 3 SA, 5.25%, 03/15/25			296		270,961
NOVA Chemicals Corp., 4.88%, 06/01/24(b)	USD		21		18,428
OCI NV:
3.13%, 11/01/24	EUR		100		97,055
5.25%, 11/01/24(b)	USD		200		172,000
Pearl Holding III Ltd., 9.50%, 12/11/22			1,000		678,689
PQ Corp.(b):
6.75%, 11/15/22			390		391,966
5.75%, 12/15/25			485		436,500
Rock International Investment, Inc., 6.63%, 03/27/20(f)(g)			1,000		419,414
Sociedad Quimica y Minera de Chile SA, 4.25%, 01/22/50(b)			400		313,760
Valvoline, Inc., 4.25%, 02/15/30(b)			297		278,408
W.R. Grace & Co.(b):
5.13%, 10/01/21			250		252,500
5.63%, 10/01/24			216		212,695
Yingde Gases Investment Ltd., 6.25%, 01/19/23(b)			200		181,500
					13,302,625
Commercial Services & Supplies — 1.1%
ACCO Brands Corp., 5.25%, 12/15/24(b)			64		61,440
ADT Security Corp. (The):
3.50%, 07/15/22			36		35,100
4.13%, 06/15/23			84		82,109
4.88%, 07/15/32(b)			433		367,920
Advanced Disposal Services, Inc., 5.63%, 11/15/24(b)			54		54,675
Allied Universal Holdco LLC(b):
6.63%, 07/15/26			1,836		1,803,870
9.75%, 07/15/27			1,653		1,557,787
APX Group, Inc.:
7.88%, 12/01/22			93		87,451
8.50%, 11/01/24(b)			76		69,351
6.75%, 02/15/27(b)			539		447,370
Aramark Services, Inc.:
5.00%, 04/01/25(b)			135		127,791
4.75%, 06/01/26			158		148,883
5.00%, 02/01/28(b)			996		926,898
Clean Harbors, Inc.(b):
4.88%, 07/15/27			332		324,995

Security		Par (000)		Value
Commercial Services & Supplies (continued)
5.13%, 07/15/29	USD		505	$	469,650
Garda World Security Corp.(b):
4.63%, 02/15/27			254		227,330
9.50%, 11/01/27			214		191,295
GFL Environmental, Inc.(b):
7.00%, 06/01/26			625		604,947
5.13%, 12/15/26			541		527,475
8.50%, 05/01/27			320		321,504
IAA, Inc., 5.50%, 06/15/27(b)			462		446,985
Intrum AB, 3.50%, 07/15/26	EUR		151		119,075
KAR Auction Services, Inc., 5.13%, 06/01/25(b)	USD		552		527,160
Mobile Mini, Inc., 5.88%, 07/01/24			559		535,242
Nielsen Co. Luxembourg SARL (The), 5.00%, 02/01/25(b)			45		41,737
Prime Security Services Borrower LLC(b):
5.25%, 04/15/24			320		316,093
5.75%, 04/15/26			234		229,320
6.25%, 01/15/28			606		522,675
Ritchie Bros Auctioneers, Inc., 5.38%, 01/15/25(b)			414		412,961
SPIE SA, 2.63%, 06/18/26	EUR		100		98,324
Techem Verwaltungsgesellschaft 674 mbH, 6.00%, 07/30/26			200		202,934
Techem Verwaltungsgesellschaft 675 mbH, 2.00%, 07/15/25			100		103,121
Vericast Corp., 8.38%, 08/15/22(b)	USD		110		84,837
Verisure Holding AB, 3.50%, 05/15/23	EUR		100		102,239
Waste Pro USA, Inc., 5.50%, 02/15/26(b)	USD		648		601,214
					12,781,758
Communications Equipment — 0.2%
CommScope, Inc.(b):
5.50%, 03/01/24			439		444,268
6.00%, 03/01/26			222		221,667
Nokia OYJ:
3.38%, 06/12/22			43		42,813
4.38%, 06/12/27			63		61,110
6.63%, 05/15/39			437		442,681
ViaSat, Inc., 5.63%, 04/15/27(b)			938		926,275
					2,138,814
Construction & Engineering — 0.3%
Aldesa Financial Services SA, 7.25%, 04/01/21	EUR		400		384,198
Brand Industrial Services, Inc., 8.50%, 07/15/25(b)	USD		582		456,986
China Shandong International Economic & Technical Finance 1 Ltd., 4.00%, 12/21/20			600		591,750
China Singyes Solar Technologies Holdings Ltd., 6.00%, (6.00% Cash or 6.00% PIK), 12/19/22(i)			877		691,829
Delhi International Airport Ltd.:
6.45%, 06/04/29(b)			200		164,187
6.45%, 06/04/29			525		430,991
Ferrovial Netherlands BV, (EUR Swap Annual 5 Year + 2.13%), 2.12%(a)(k)	EUR		200		179,453
GMR Hyderabad International Airport Ltd., 4.25%, 10/27/27	USD		200		159,848
Heathrow Finance plc, 4.13%, 09/01/29	GBP		143		151,954
Leader Goal International Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 6.92%), 4.25%(a)(k)	USD		200		191,875
New Enterprise Stone & Lime Co., Inc.(b):
10.13%, 04/01/22			148		147,630
6.25%, 03/15/26			70		64,400
					3,615,101

SCHEDULES OF INVESTMENTS 19

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security	Par (000)			Value
Construction Materials — 0.1%
Inversiones CMPC SA, 4.75%, 09/15/24		USD	600	$	588,000
Consumer Finance — 1.6%
AerCap Ireland Capital DAC, 4.50%, 05/15/21			200		183,481
Ally Financial, Inc., 8.00%, 11/01/31			1,625		1,882,887
CDBL Funding 1, 3.00%, 04/24/23			800		832,250
Ford Motor Credit Co. LLC:
5.88%, 08/02/21			1,229		1,204,420
3.81%, 01/09/24			209		189,145
4.13%, 08/04/25			379		336,173
4.39%, 01/08/26			500		437,500
General Motors Financial Co., Inc.: 3.55%, 04/09/21			140		134,143
(EURIBOR 3 Month + 0.68%), 0.28%, 05/10/21(a)		EUR	100		106,599
3.20%, 07/06/21		USD	1,000		951,924
4.20%, 11/06/21			475		453,361
Global Aircraft Leasing Co. Ltd., 6.50%, (6.50% Cash or 7.25% PIK), 09/15/24(b)(i)			379		242,912
Hanhui International Ltd., 4.37%, 08/22/22			570		554,656
LeasePlan Corp. NV, (EURIBOR 3 Month + 0.50%), 0.11%, 01/25/21(a)		EUR	200		218,256
Manappuram Finance Ltd., 5.90%, 01/13/23		USD	900		648,000
Muthoot Finance Ltd., 4.40%, 09/02/23			200		155,403
Navient Corp.:
5.00%, 10/26/20			29		28,565
7.25%, 09/25/23			70		67,904
6.13%, 03/25/24			97		89,725
5.88%, 10/25/24			30		27,600
6.75%, 06/25/25			148		136,160
6.75%, 06/15/26			224		206,080
5.00%, 03/15/27			360		309,492
New Lion Bridge Co. Ltd., 9.75%, 10/10/20			1,430		1,279,850
Springleaf Finance Corp.:
6.13%, 05/15/22			22		22,227
6.88%, 03/15/25			209		210,488
7.13%, 03/15/26			714		706,860
6.63%, 01/15/28			125		118,125
5.38%, 11/15/29			148		135,420
Synchrony Financial, 2.85%, 07/25/22			245		232,618
Toyota Motor Credit Corp., 3.38%, 04/01/30			6,120		6,179,794
Volkswagen Bank GmbH, (EURIBOR 3 Month + 0.42%), 0.00%, 06/15/21(a)		EUR	100		108,721
					18,390,739
Containers & Packaging — 0.7%
ARD Finance SA, 6.50%, (6.50% Cash or 0.00% PIK), 06/30/27(b)(i)		USD	1,179		1,012,643
Ardagh Packaging Finance plc:
2.13%, 08/15/26		EUR	100		98,324
4.13%, 08/15/26(b)		USD	200		199,000
Crown Americas LLC:
4.75%, 02/01/26			556		569,733
4.25%, 09/30/26			17		16,745
Crown Cork & Seal Co., Inc., 7.38%, 12/15/26			177		181,425
Crown European Holdings SA, 2.25%, 02/01/23(b)		EUR	100		107,914
Graphic Packaging International LLC(b):
4.75%, 07/15/27		USD	123		120,294
3.50%, 03/15/28			58		52,183
Intertape Polymer Group, Inc., 7.00%, 10/15/26(b)			257		245,435
LABL Escrow Issuer LLC, 6.75%, 07/15/26(b)			707		650,440
Mauser Packaging Solutions Holding Co.:
4.75%, 04/15/24		EUR	149		139,814
5.50%, 04/15/24(b)		USD	1,587		1,460,040

Security	Par (000)			Value
Containers & Packaging (continued)
Reynolds Group Issuer, Inc.(b):
(LIBOR USD 3 Month + 3.50%), 5.33%, 07/15/21(a)		USD	205	$	199,875
5.13%, 07/15/23			339		335,610
7.00%, 07/15/24			221		224,591
Silgan Holdings, Inc.:
3.25%, 03/15/25		EUR	300		322,598
4.13%, 02/01/28(b)		USD	181		166,973
2.25%, 06/01/28		EUR	232		226,703
Trivium Packaging Finance BV(e):
3.75%, 08/15/26			100		100,309
5.50%, 08/15/26(b)		USD	849		844,755
8.50%, 08/15/27(b)			1,258		1,264,290
					8,539,694
Distributors — 0.3%(b)
American Builders & Contractors Supply Co., Inc.:
5.88%, 05/15/26			578		550,545
4.00%, 01/15/28			536		487,760
Core & Main Holdings LP, 8.63%, (8.63% Cash or 9.38% PIK), 09/15/24(i)			547		500,505
Core & Main LP, 6.13%, 08/15/25			743		690,990
Wolverine Escrow LLC:
8.50%, 11/15/24			236		188,208
9.00%, 11/15/26			580		471,250
					2,889,258
Diversified Consumer Services — 0.2%
frontdoor, Inc., 6.75%, 08/15/26(b)			486		465,345
Graham Holdings Co., 5.75%, 06/01/26(b)			420		411,600
Laureate Education, Inc., 8.25%, 05/01/25(b)			42		41,790
Service Corp. International, 5.13%, 06/01/29			198		201,960
ServiceMaster Co. LLC (The), 5.13%, 11/15/24(b)			420		414,750
Sotheby’s, 7.38%, 10/15/27(b)			500		398,125
					1,933,570
Diversified Financial Services — 1.0%
Arrow Global Finance plc, 5.13%, 09/15/24		GBP	100		106,821
Berkshire Hathaway, Inc., 0.00%, 03/12/25		EUR	175		182,942
Cabot Financial Luxembourg SA, 7.50%, 10/01/23		GBP	300		346,859
CK Hutchison International 16 Ltd., 2.75%, 10/03/26(b)		USD	500		516,094
Coastal Emerald Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 7.45%), 4.30%(a)(k)			595		551,491
Fairstone Financial, Inc., 7.88%, 07/15/24(b)			128		120,320
Garfunkelux Holdco 3 SA, 7.50%, 08/01/22		EUR	330		248,562
GE Capital International Funding Co. Unlimited Co., 2.34%, 11/15/20		USD	1,500		1,474,779
Grupo de Inversiones Suramericana SA, 5.70%, 05/18/21			371		370,420
HBOS Capital Funding LP, 6.85%(k)			416		391,664
LHC3 plc, 4.13%, (4.13% Cash or 9.00% PIK), 08/15/24(i)		EUR	553		506,940
MPH Acquisition Holdings LLC, 7.13%, 06/01/24(b)		USD	1,824		1,586,989
Refinitiv US Holdings, Inc.:
4.50%, 05/15/26		EUR	496		541,568
6.25%, 05/15/26(b)		USD	1,404		1,449,630
8.25%, 11/15/26(b)			593		625,615
Verscend Escrow Corp., 9.75%, 08/15/26(b)			2,674		2,668,973
					11,689,667

20 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Telecommunication Services — 3.0%
Altice France SA:
7.38%, 05/01/26(b)	USD		2,248	$	2,231,477
5.88%, 02/01/27	EUR		250		279,172
8.13%, 02/01/27(b)	USD		898		936,165
5.50%, 01/15/28(b)			496		464,405
AT&T, Inc.:
3.60%, 07/15/25			350		370,824
4.50%, 03/09/48			1,000		1,082,925
CCO Holdings LLC(b):
4.00%, 03/01/23			145		144,456
5.75%, 02/15/26			152		153,923
5.13%, 05/01/27			1,550		1,554,030
5.00%, 02/01/28			66		66,165
5.38%, 06/01/29			772		793,307
4.75%, 03/01/30			272		270,640
4.50%, 08/15/30			1,407		1,378,860
4.50%, 05/01/32			1,231		1,200,471
CenturyLink, Inc.:
Series W, 6.75%, 12/01/23			876		931,013
Series Y, 7.50%, 04/01/24			183		200,385
5.13%, 12/15/26(b)			874		874,000
4.00%, 02/15/27(b)			596		578,120
Series P, 7.60%, 09/15/39			206		199,820
Series U, 7.65%, 03/15/42			375		363,750
Cincinnati Bell, Inc., 7.00%, 07/15/24(b)			92		92,575
Front Range BidCo, Inc.(b):
4.00%, 03/01/27			1,672		1,598,850
6.13%, 03/01/28			1,274		1,210,300
Frontier Communications Corp., 8.00%, 04/01/27(b)			2,283		2,251,677
Intelsat Jackson Holdings SA:
5.50%, 08/01/23			948		620,940
8.50%, 10/15/24(b)			1,000		629,700
Level 3 Financing, Inc.:
5.63%, 02/01/23			11		10,945
5.13%, 05/01/23			42		41,265
5.38%, 05/01/25			6		5,970
5.25%, 03/15/26			427		426,733
4.63%, 09/15/27(b)			298		296,182
Network i2i Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.27%), 5.65%(a)(k)			256		203,200
Oi SA, 10.00%, (10.00% Cash or 4.00% PIK), 07/27/25(i)			140		95,550
Ooredoo International Finance Ltd., 3.75%, 06/22/26			600		600,000
Orange SA:
0.00%, 09/04/26	EUR		500		511,799
1.25%, 07/07/27			200		220,340
0.50%, 09/04/32			300		286,119
Qualitytech LP, 4.75%, 11/15/25(b)	USD		760		733,400
Sable International Finance Ltd., 5.75%, 09/07/27(b)			200		180,000
Sprint Capital Corp.:
6.88%, 11/15/28			796		909,191
8.75%, 03/15/32			749		990,553
Telecom Italia Capital SA:
6.38%, 11/15/33			179		181,685
6.00%, 09/30/34			519		513,810
7.20%, 07/18/36			72		74,520
7.72%, 06/04/38			125		132,151
Telecom Italia Finance SA, 7.75%, 01/24/33	EUR		200		287,335
Telecom Italia SpA:
1.13%, 03/26/22(l)			100		103,965
5.30%, 05/30/24(b)	USD		501		503,535

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
2.75%, 04/15/25	EUR		200	$	206,794
3.00%, 09/30/25			100		104,487
2.38%, 10/12/27			300		292,820
5.25%, 03/17/55			100		109,893
Telesat Canada(b):
4.88%, 06/01/27	USD		609		581,473
6.50%, 10/15/27			24		23,040
Verizon Communications, Inc.:
1.38%, 10/27/26	EUR		150		164,305
3.88%, 02/08/29	USD		325		359,423
4.50%, 08/10/33			500		589,357
2.88%, 01/15/38	EUR		150		168,037
5.50%, 03/16/47	USD		225		308,047
5.01%, 04/15/49			290		389,714
4.00%, 03/22/50			780		922,456
Virgin Media Finance plc, 5.75%, 01/15/25(b)			1,352		1,311,440
Virgin Media Secured Finance plc:
5.50%, 08/15/26(b)			200		203,000
6.25%, 03/28/29	GBP		360		443,427
5.50%, 05/15/29(b)	USD		260		259,064
					34,222,975
Electric Utilities — 0.7%
Adani Electricity Mumbai Ltd., 3.95%, 02/12/30			800		658,000
Adani Transmission Ltd., 4.25%, 05/21/36			875		818,177
ContourGlobal Power Holdings SA, 4.13%, 08/01/25	EUR		227		219,425
Duke Energy Corp., 3.95%, 08/15/47	USD		750		722,487
Edison International, 4.95%, 04/15/25			65		64,850
Enel Finance International NV, 4.25%, 09/14/23(b)			595		608,719
Exelon Corp., 4.45%, 04/15/46			200		200,199
Huachen Energy Co. Ltd., 6.63%, 05/18/20(f)(g)			275		107,766
LLPL Capital Pte. Ltd., 6.88%, 02/04/39			457		446,344
Mong Duong Finance Holdings BV, 5.13%, 05/07/29			256		213,075
Naturgy Finance BV:
(EUR Swap Annual 9 Year + 3.08%), 3.38%(a)(k)	EUR		100		105,909
1.88%, 10/05/29			100		116,278
NextEra Energy Capital Holdings, Inc., 2.75%, 11/01/29	USD		495		477,224
NextEra Energy Operating Partners LP(b):
4.25%, 07/15/24			278		271,050
4.25%, 09/15/24			60		58,500
4.50%, 09/15/27			4		3,900
NRG Energy, Inc.:
3.75%, 06/15/24(b)			63		61,804
6.63%, 01/15/27			1,003		1,043,120
4.45%, 06/15/29(b)			291		294,414
5.25%, 06/15/29(b)			597		614,910
Oncor Electric Delivery Co. LLC, 3.10%, 09/15/49			165		160,033
Virginia Electric & Power Co., Series B, 3.80%, 09/15/47			500		507,330
Vistra Operations Co. LLC, 4.30%, 07/15/29(b)			409		362,624
					8,136,138
Electrical Equipment — 0.1%
Sensata Technologies BV(b):
5.63%, 11/01/24			175		170,625
5.00%, 10/01/25			833		789,267
					959,892

SCHEDULES OF INVESTMENTS 21

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Electronic Equipment, Instruments & Components — 0.5%
AAC Technologies Holdings, Inc., 3.00%, 11/27/24	USD		1,500	$	1,440,000
Anixter, Inc., 6.00%, 12/01/25			274		268,178
Belden, Inc.:
4.13%, 10/15/26	EUR		210		216,297
3.88%, 03/15/28			100		99,812
CDW LLC:
5.50%, 12/01/24	USD		1,064		1,108,997
5.00%, 09/01/25			150		154,545
Ingenico Group SA, 1.63%, 09/13/24	EUR		200		216,299
Innolux Corp., Series 1, 0.00%, 01/22/25(l)(m)	USD		1,200		1,186,500
Itron, Inc., 5.00%, 01/15/26(b)			7		6,650
LG Display Co. Ltd., 1.50%, 08/22/24(l)			400		365,080
Sensata Technologies, Inc., 4.38%, 02/15/30(b)			131		117,900
					5,180,258
Energy Equipment & Services — 0.5%
Anton Oilfield Services Group:
9.75%, 12/05/20			1,300		1,170,406
7.50%, 12/02/22			800		541,336
Apergy Corp., 6.38%, 05/01/26			138		106,260
Archrock Partners LP(b):
6.88%, 04/01/27			285		202,379
6.25%, 04/01/28			148		102,120
Hilong Holding Ltd., 8.25%, 09/26/22			2,695		1,751,750
Nabors Industries Ltd.(b):
7.25%, 01/15/26			140		47,600
7.50%, 01/15/28			127		40,640
Nabors Industries, Inc., 4.63%, 09/15/21			11		6,930
Pacific Drilling SA, 8.38%, 10/01/23(b)			260		70,200
Tervita Corp., 7.63%, 12/01/21(b)			403		282,100
Transocean, Inc.:
6.50%, 11/15/20			10		7,950
8.37%, 12/15/21(e)			5		2,900
8.00%, 02/01/27(b)			251		119,225
USA Compression Partners LP:
6.88%, 04/01/26			639		399,375
6.88%, 09/01/27			329		203,980
Vallourec SA, 6.63%, 10/15/22	EUR		200		123,794
					5,178,945
Entertainment — 0.3%
Banijay Entertainment SASU, 3.50%, 03/01/25			122		121,001
Lions Gate Capital Holdings LLC(b):
6.38%, 02/01/24	USD		74		65,120
5.88%, 11/01/24			108		92,340
Live Nation Entertainment, Inc., 4.88%, 11/01/24(b)			71		64,635
Netflix, Inc.:
4.88%, 04/15/28			9		9,270
5.88%, 11/15/28			417		445,565
5.38%, 11/15/29(b)			892		925,584
3.63%, 06/15/30	EUR		835		897,898
4.88%, 06/15/30(b)	USD		640		649,696
Pinewood Finance Co. Ltd., 3.25%, 09/30/25	GBP		475		548,698
					3,819,807
Equity Real Estate Investment Trusts (REITs) — 1.4%
American Tower Corp., 3.13%, 01/15/27	USD		1,000		976,103
Brookfield Property REIT, Inc., 5.75%, 05/15/26(b)			561		455,184
Crown Castle International Corp.:
3.80%, 02/15/28			1,000		1,022,261
3.30%, 07/01/30			990		981,872
4.15%, 07/01/50			580		573,620
GLP Capital LP:
3.35%, 09/01/24			70		61,950

Security		Par (000)		Value
Equity Real Estate Investment Trusts (REITs) (continued)
5.25%, 06/01/25	USD		79	$	73,075
5.38%, 04/15/26			131		116,118
4.00%, 01/15/30			325		273,260
Inmobiliaria Colonial Socimi SA:
1.63%, 11/28/25	EUR		100		108,960
Series ETMn, 2.50%, 11/28/29			200		221,249
Iron Mountain, Inc.:
3.00%, 01/15/25			200		193,742
5.25%, 03/15/28(b)	USD		194		191,633
4.88%, 09/15/29(b)			34		31,939
iStar, Inc., 5.25%, 09/15/22			60		55,350
MGM Growth Properties Operating Partnership LP:
5.63%, 05/01/24			1,007		966,720
4.50%, 09/01/26			669		555,270
5.75%, 02/01/27			36		31,320
4.50%, 01/15/28			232		197,200
MPT Operating Partnership LP:
5.50%, 05/01/24			34		33,065
5.00%, 10/15/27			1,239		1,201,830
4.63%, 08/01/29			362		336,660
Ryman Hospitality Properties, Inc., 4.75%, 10/15/27(b)			659		494,250
SBA Communications Corp.:
4.88%, 09/01/24			1,076		1,090,795
3.88%, 02/15/27(b)			808		810,020
Trust Fibra Uno, 5.25%, 01/30/26			700		641,594
Uniti Group LP(b):
6.00%, 04/15/23			132		120,120
7.88%, 02/15/25			645		593,000
VICI Properties LP(b):
3.50%, 02/15/25			318		296,535
4.25%, 12/01/26			816		748,680
3.75%, 02/15/27			470		442,975
4.63%, 12/01/29			342		312,034
4.13%, 08/15/30			1,363		1,276,109
					15,484,493
Food & Staples Retailing — 0.3%
Albertsons Cos., Inc.:
6.63%, 06/15/24			114		115,710
5.75%, 03/15/25			89		89,925
4.63%, 01/15/27(b)			1,069		1,063,655
5.88%, 02/15/28(b)			126		128,243
4.88%, 02/15/30(b)			346		345,135
Carrefour SA, 2.63%, 12/15/27	EUR		200		227,863
Casino Guichard Perrachon SA, 3.58%, 02/07/25(e)			100		88,164
Cencosud SA, 6.63%, 02/12/45	USD		228		203,419
Distribuidora Internacional de Alimentacion SA, 1.00%, 04/28/21	EUR		100		77,203
Iceland Bondco plc, 4.63%, 03/15/25	GBP		200		197,494
Koninklijke Ahold Delhaize NV, 1.75%, 04/02/27	EUR		100		111,941
Picard Groupe SAS, (EURIBOR 3 Month + 3.00%), 3.00%, 11/30/23(a)			200		205,698
Quatrim SASU, 5.88%, 01/15/24			100		107,238
Sysco Corp.:
5.65%, 04/01/25	USD		105		109,311
5.95%, 04/01/30			163		171,124
Tesco Corporate Treasury Services plc, 0.88%, 05/29/26	EUR		125		127,867
.					3,369,990

22 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security	Par (000)			Value
Food Products — 0.8%
Chobani LLC, 7.50%, 04/15/25(b)		USD	1,815	$	1,651,650
General Mills, Inc., 2.88%, 04/15/30			540		538,920
Gruma SAB de CV, 4.88%, 12/01/24			760		723,900
JBS USA LUX SA(b):
5.88%, 07/15/24			341		345,263
5.75%, 06/15/25			749		756,490
6.75%, 02/15/28			114		121,465
6.50%, 04/15/29			759		814,179
5.50%, 01/15/30			166		171,395
Knight Castle Investments Ltd., 7.99%, 01/23/21			1,400		729,750
Kraft Heinz Foods Co.:
2.25%, 05/25/28		EUR	100		94,399
5.00%, 07/15/35		USD	107		106,380
6.88%, 01/26/39			219		250,497
4.63%, 10/01/39(b)			98		87,763
6.50%, 02/09/40			145		158,220
5.00%, 06/04/42			9		8,521
5.20%, 07/15/45			237		227,850
4.38%, 06/01/46			222		199,982
4.88%, 10/01/49(b)			798		725,593
Nestle Finance International Ltd., 1.13%, 04/01/26		EUR	100		114,111
Post Holdings, Inc.(b):
5.00%, 08/15/26		USD	224		230,530
5.63%, 01/15/28			275		279,125
5.50%, 12/15/29			17		17,634
4.63%, 04/15/30			395		378,212
Premier Foods Finance plc, 6.25%, 10/15/23		GBP	100		113,329
Sigma Finance Netherlands BV, 4.88%, 03/27/28		USD	331		310,147
Simmons Foods, Inc., 7.75%, 01/15/24(b)			283		283,000
					9,438,305
Gas Utilities — 0.1%
China Oil & Gas Group Ltd., 5.50%, 01/25/23			200		179,830
Perusahaan Gas Negara Tbk. PT, 5.13%, 05/16/24			769		750,015
Superior Plus LP, 7.00%, 07/15/26(b)			191		186,225
					1,116,070
Health Care Equipment & Supplies — 0.3%
Baxter International, Inc., 3.95%, 04/01/30(b)			30		32,166
Becton Dickinson and Co., 4.67%, 06/06/47			275		296,332
Hologic, Inc.(b):
4.38%, 10/15/25			61		60,408
4.63%, 02/01/28			188		188,470
Immucor, Inc., 11.13%, 02/15/22(b)			42		37,800
Koninklijke Philips NV, 1.38%, 03/30/25		EUR	100		112,334
Ortho-Clinical Diagnostics, Inc.(b):
6.63%, 05/15/22		USD	641		605,745
7.25%, 02/01/28			1,540		1,324,246
Stryker Corp., 0.75%, 03/01/29		EUR	200		205,664
Teleflex, Inc.:
4.88%, 06/01/26		USD	264		261,360
4.63%, 11/15/27			34		33,963
					3,158,488
Health Care Providers & Services — 1.8%
Acadia Healthcare Co., Inc., 5.13%, 07/01/22			241		229,704
AHP Health Partners, Inc., 9.75%, 07/15/26(b)			1,245		1,077,363
Anthem, Inc., 2.88%, 09/15/29			325		316,633
Centene Corp.:
4.75%, 01/15/25			108		108,269
5.25%, 04/01/25(b)			20		20,100
5.38%, 06/01/26(b)			242		249,286

Security	Par (000)			Value
Health Care Providers & Services (continued)
5.38%, 08/15/26(b)		USD	750	$	765,000
4.25%, 12/15/27(b)			530		519,400
4.63%, 12/15/29(b)			1,255		1,261,275
3.38%, 02/15/30(b)			326		303,180
Community Health Systems, Inc.(b):
8.63%, 01/15/24			337		332,683
6.63%, 02/15/25			740		684,500
8.00%, 03/15/26			2,194		2,084,300
CVS Health Corp., 5.05%, 03/25/48			600		685,517
Encompass Health Corp., 5.75%, 11/01/24			142		142,667
HCA, Inc.:
5.38%, 02/01/25			543		555,217
5.88%, 02/15/26			7		7,368
5.38%, 09/01/26			419		431,570
5.63%, 09/01/28			222		232,367
5.88%, 02/01/29			456		482,220
3.50%, 09/01/30			1,852		1,680,156
LifePoint Health, Inc., 4.38%, 02/15/27(b)			360		339,120
MEDNAX, Inc.(b):
5.25%, 12/01/23			88		71,720
6.25%, 01/15/27			444		356,310
Molina Healthcare, Inc., 4.88%, 06/15/25(b)			524		510,900
Polaris Intermediate Corp., 8.50%, (8.50% Cash or 9.25% PIK), 12/01/22(b)(i)			275		213,302
Radiology Partners, Inc., 9.25%, 02/01/28(b)			260		225,095
Surgery Center Holdings, Inc.(b):
6.75%, 07/01/25			1,107		797,040
10.00%, 04/15/27			1,246		872,200
Tenet Healthcare Corp.:
8.13%, 04/01/22			824		784,860
4.63%, 07/15/24			436		416,380
4.63%, 09/01/24(b)			219		209,758
4.88%, 01/01/26(b)			1,632		1,554,480
6.25%, 02/01/27(b)			326		317,850
5.13%, 11/01/27(b)			590		561,975
UnitedHealth Group, Inc., 3.50%, 08/15/39			800		862,748
Vizient, Inc., 6.25%, 05/15/27(b)			600		585,249
					20,847,762
Health Care Technology — 0.1%
IQVIA, Inc.:
3.25%, 03/15/25(b)		EUR	100		107,535
3.25%, 03/15/25			200		215,069
5.00%, 10/15/26(b)		USD	200		204,000
5.00%, 05/15/27(b)			1,144		1,169,740
					1,696,344
Hotels, Restaurants & Leisure — 1.7%
1011778 BC ULC(b):
4.25%, 05/15/24			84		83,789
5.00%, 10/15/25			1,145		1,093,464
3.88%, 01/15/28			633		601,350
4.38%, 01/15/28			467		431,461
Aramark International Finance SARL, 3.13%, 04/01/25		EUR	200		184,599
Boyne USA, Inc., 7.25%, 05/01/25(b)		USD	204		194,820
Cedar Fair LP, 5.25%, 07/15/29(b)			405		342,225
Churchill Downs, Inc.(b):
5.50%, 04/01/27			715		674,009
4.75%, 01/15/28			387		336,690
CPUK Finance Ltd.:
4.25%, 08/28/22		GBP	225		224,269
4.88%, 08/28/25			100		98,368
Eldorado Resorts, Inc.:
6.00%, 04/01/25		USD	152		136,800
6.00%, 09/15/26			148		133,570

SCHEDULES OF INVESTMENTS 23

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
Explorer II A/S, 3.38%, 02/24/25	EUR		100	$	64,524
Fortune Star BVI Ltd.:
5.95%, 01/29/23	USD		200		176,563
6.75%, 07/02/23			256		229,600
Golden Nugget, Inc., 6.75%, 10/15/24(b)			1,408		886,885
Greene King Finance plc, Series B2, (LIBOR GBP 3 Month + 2.08%), 2.57%, 03/15/36(a)	GBP		100		109,481
Hilton Domestic Operating Co., Inc.:
4.25%, 09/01/24	USD		93		86,955
5.13%, 05/01/26			337		316,780
4.88%, 01/15/30			1,075		913,750
Hilton Worldwide Finance LLC, 4.88%, 04/01/27			231		219,450
Huazhu Group Ltd., 0.38%, 11/01/22(l)			913		875,932
IRB Holding Corp., 6.75%, 02/15/26(b)			168		132,370
KFC Holding Co., 5.25%, 06/01/26(b)			600		599,160
Las Vegas Sands Corp.:
2.90%, 06/25/25			52		47,142
3.50%, 08/18/26			46		42,075
3.90%, 08/08/29			30		25,855
LHMC Finco 2 SARL: 7.25%, (7.25% Cash or 8.00% PIK), 10/02/25(i)	EUR		329		137,885
Marriott Ownership Resorts, Inc., 6.50%, 09/15/26	USD		14		12,180
McDonald’s Corp.:
3.50%, 07/01/27			105		110,304
3.60%, 07/01/30			105		110,243
4.45%, 09/01/48			300		332,457
3.63%, 09/01/49			810		817,246
4.20%, 04/01/50			375		419,454
Melco Resorts Finance Ltd.:
5.25%, 04/26/26			256		229,225
5.38%, 12/04/29			545		458,481
MGM China Holdings Ltd., 5.88%, 05/15/26			486		404,443
MGM Resorts International:
7.75%, 03/15/22			692		685,440
6.00%, 03/15/23			229		220,985
5.75%, 06/15/25			23		20,585
Motion Bondco DAC, 6.63%, 11/15/27(b)			400		280,000
Pinnacle Bidco plc, 6.38%, 02/15/25	GBP		100		83,221
Scientific Games International, Inc.(b):
5.00%, 10/15/25	USD		1,522		1,324,140
8.25%, 03/15/26			721		461,519
7.00%, 05/15/28			138		84,870
7.25%, 11/15/29			50		31,250
Six Flags Entertainment Corp.(b):
4.88%, 07/31/24			880		745,800
5.50%, 04/15/27			16		13,480
Station Casinos LLC, 4.50%, 02/15/28(b)			286		231,660
Studio City Finance Ltd., 7.25%, 02/11/24			746		650,326
Viking Cruises Ltd., 5.88%, 09/15/27(b)			250		146,277
Vinpearl JSC, 3.50%, 06/14/23(l)			600		589,410
William Hill plc, 4.75%, 05/01/26	GBP		200		189,458
Wyndham Destinations, Inc., 5.75%, 04/01/27(e)	USD		37		30,895
Wyndham Hotels & Resorts, Inc., 5.38%, 04/15/26(b)			130		113,100
Wynn Las Vegas LLC, 5.25%, 05/15/27(b)			183		165,615
Wynn Macau Ltd., 5.50%, 10/01/27			200		173,000
Wynn Resorts Finance LLC, 5.13%, 10/01/29(b)			148		134,680
Yum! Brands, Inc.:
7.75%, 04/01/25(b)			342		359,100
4.75%, 01/15/30(b)			234		219,960
5.35%, 11/01/43			127		107,950
					19,356,575

Security			Par (000)		Value
Household Durables — 0.4%
Ashton Woods USA LLC, 6.63%, 01/15/28(b)	USD			54	$	42,660
Brookfield Residential Properties, Inc.(b):
6.25%, 09/15/27				198		171,745
4.88%, 02/15/30				569		432,269
Installed Building Products, Inc., 5.75%, 02/01/28(b)				101		96,203
K. Hovnanian Enterprises, Inc., 7.75%, 02/15/26(b)		��		262		267,895
Lennar Corp.:
6.25%, 12/15/21				360		359,100
4.88%, 12/15/23				134		131,320
4.75%, 05/30/25				228		217,740
5.25%, 06/01/26				108		109,890
4.75%, 11/29/27				650		648,375
Mattamy Group Corp.(b):
5.25%, 12/15/27				118		109,740
4.63%, 03/01/30				367		315,620
MDC Holdings, Inc., 6.00%, 01/15/43				32		30,256
Meritage Homes Corp., 5.13%, 06/06/27				60		56,400
PulteGroup, Inc.:
5.00%, 01/15/27				22		21,952
7.88%, 06/15/32				15		16,500
6.38%, 05/15/33				352		355,766
Shea Homes LP, 4.75%, 02/15/28(b)				210		179,287
Taylor Morrison Communities, Inc., 5.88%, 06/15/27(b)				127		117,954
Tempur Sealy International, Inc., 5.50%, 06/15/26				8		7,001
TRI Pointe Group, Inc.:
4.88%, 07/01/21				97		90,099
5.25%, 06/01/27				2		1,779
Williams Scotsman International, Inc.(b):
7.88%, 12/15/22				170		165,835
6.88%, 08/15/23				630		573,300
						4,518,686
Household Products — 0.1%
Energizer Holdings, Inc.(b):
6.38%, 07/15/26				11		11,110
7.75%, 01/15/27				243		251,189
Kimberly-Clark Corp., 3.10%, 03/26/30				40		43,273
Spectrum Brands, Inc.:
5.75%, 07/15/25				370		345,950
5.00%, 10/01/29(b)				35		29,750
						681,272
Independent Power and Renewable Electricity Producers — 0.3%
Calpine Corp.:
5.50%, 02/01/24				49		46,550
5.75%, 01/15/25				864		799,200
5.25%, 06/01/26(b)				972		923,400
4.50%, 02/15/28(b)				57		55,247
5.13%, 03/15/28(b)				984		905,280
Clearway Energy Operating LLC:
5.75%, 10/15/25				117		115,830
4.75%, 03/15/28(b)				196		181,790
Listrindo Capital BV, 4.95%, 09/14/26(b)				200		173,250
Pattern Energy Group, Inc., 5.88%, 02/01/24(b)				84		83,385
Talen Energy Supply LLC:
6.50%, 06/01/25				20		12,946
10.50%, 01/15/26(b)				20		14,400
						3,311,278
Industrial Conglomerates — 0.1%
3M Co.:
3.05%, 04/15/30				60		62,510
3.70%, 04/15/50				860		972,003

24 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Industrial Conglomerates (continued)
General Electric Co., (EURIBOR 3 Month + 0.30%), 0.00%, 05/28/20(a)	EUR		100	$	109,960
Honeywell International, Inc., 0.75%, 03/10/32			100		100,389
					1,244,862
Insurance — 1.2%
Achmea BV, (EURIBOR Swap Rate 5 Year + 4.78%), 4.62%(a)(k)			250		226,696
Acrisure LLC, 8.13%, 02/15/24(b)	USD		173		168,511
Aflac, Inc., 3.60%, 04/01/30			235		238,017
Alliant Holdings Intermediate LLC, 6.75%, 10/15/27(b)			1,123		1,051,577
AmWINS Group, Inc., 7.75%, 07/01/26(b)			387		379,260
Ardonagh Midco 3 plc, 8.63%, 07/15/23(b)			200		178,000
Asahi Mutual Life Insurance Co., (USD Swap Semi 5 Year + 4.59%), 6.50%(a)(k)			1,056		1,003,222
Assicurazioni Generali SpA(a):
(EURIBOR 3 Month + 4.50%), 4.60%(k)	EUR		100		108,084
(EURIBOR 3 Month + 5.35%), 5.50%, 10/27/47			450		538,570
(EURIBOR 3 Month + 5.35%), 5.00%, 06/08/48			100		117,449
BNP Paribas Cardif SA, (EURIBOR 3 Month + 3.93%), 4.03%(a)(k)			200		213,223
CNP Assurances:
1.88%, 10/20/22			100		110,380
(EURIBOR 3 Month + 4.60%), 4.50%, 06/10/47(a)			100		119,254
FWD Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.08%), 5.50%(a)(k)	USD		1,200		1,155,000
Galaxy Bidco Ltd., 6.50%, 07/31/26	GBP		255		285,695
GTCR AP Finance, Inc., 8.00%, 05/15/27(b)	USD		525		483,000
Heungkuk Life Insurance Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.47%), 4.48%(a)(k)			2,000		1,913,125
HUB International Ltd., 7.00%, 05/01/26(b)			1,515		1,499,850
KDB Life Insurance Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.66%), 7.50%(a)(k)			1,800		1,737,000
NFP Corp., 8.00%, 07/15/25(b)			202		184,830
Nippon Life Insurance Co., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.61%), 3.40%, 01/23/50(a)			225		216,000
QBE Insurance Group Ltd., (USD Swap Rate 10 Year + 4.40%), 5.87%, 06/17/46(a)			1,200		1,146,004
Union Life Insurance Co. Ltd., 3.00%, 09/19/21			1,200		817,200
					13,889,947
Interactive Media & Services — 0.2%
Baidu, Inc., 4.13%, 06/30/25			600		640,500
JOYY, Inc., 0.75%, 06/15/25(b)(l)			111		100,277
Match Group, Inc., 4.13%, 08/01/30(b)			426		380,737
Rackspace Hosting, Inc., 8.63%, 11/15/24(b)			251		225,272
Tencent Holdings Ltd., 3.80%, 02/11/25			600		639,156
Twitter, Inc., 3.88%, 12/15/27(b)			99		95,226
					2,081,168
Internet & Direct Marketing Retail — 0.2%
Alibaba Group Holding Ltd., 3.60%, 11/28/24			500		524,675
Baozun, Inc., 1.63%, 05/01/24(b)(l)			413		334,641
Go Daddy Operating Co. LLC, 5.25%, 12/01/27(b)			250		252,300
Prosus NV, 5.50%, 07/21/25			700		683,375
					1,794,991

Security			Par (000)		Value
IT Services — 0.9%
21Vianet Group, Inc., 7.88%, 10/15/21		USD		2,065	$	1,734,682
Banff Merger Sub, Inc.:
8.38%, 09/01/26		EUR		210		212,014
9.75%, 09/01/26(b)		USD		1,586		1,395,680
Booz Allen Hamilton, Inc., 5.13%, 05/01/25(b)				719		704,620
Fidelity National Information Services, Inc., 3.75%, 05/21/29				235		255,498
Fiserv, Inc., 3.50%, 07/01/29				495		514,894
Gartner, Inc., 5.13%, 04/01/25(b)				229		223,847
International Business Machines Corp., 4.25%, 05/15/49				660		775,921
Mastercard, Inc.:
3.35%, 03/26/30				145		160,577
3.85%, 03/26/50				2,115		2,591,820
Presidio Holdings, Inc.(b):
4.88%, 02/01/27				536		479,720
8.25%, 02/01/28				247		217,669
Science Applications International Corp., 4.88%, 04/01/28(b)				230		220,800
Tempo Acquisition LLC, 6.75%, 06/01/25(b)	��			784		717,407
United Group BV, 3.63%, 02/15/28		EUR		111		99,064
WEX, Inc., 4.75%, 02/01/23(b)		USD		91		87,360
						10,391,573
Leisure Products — 0.1%
Mattel, Inc.:
6.75%, 12/31/25(b)				800		813,520
5.88%, 12/15/27(b)				232		238,450
6.20%, 10/01/40				20		16,550
5.45%, 11/01/41				94		74,260
						1,142,780
Life Sciences Tools & Services — 0.3%
Avantor, Inc.(b):
6.00%, 10/01/24				2,061		2,159,310
9.00%, 10/01/25				1,172		1,233,764
Charles River Laboratories International, Inc.(b):
5.50%, 04/01/26				125		128,750
4.25%, 05/01/28				186		179,286
Thermo Fisher Scientific, Inc., 4.50%, 03/25/30				95		106,793
						3,807,903
Machinery — 0.5%
Amsted Industries, Inc., 5.63%, 07/01/27(b)				108		105,075
CNH Industrial Finance Europe SA, 1.75%, 09/12/25		EUR		100		103,590
Colfax Corp.(b):
6.00%, 02/15/24		USD		309		298,185
6.38%, 02/15/26				437		430,445
Deere & Co., 3.10%, 04/15/30				65		68,800
EnPro Industries, Inc., 5.75%, 10/15/26				618		594,825
Grinding Media, Inc., 7.38%, 12/15/23(b)				435		405,768
Husky III Holding Ltd., 13.00%, (13.00% Cash or 13.75% PIK), 02/15/25(b)(i)				234		171,868
Manitowoc Co., Inc. (The), 9.00%, 04/01/26(b)				103		91,155
Mueller Water Products, Inc., 5.50%, 06/15/26(b)				351		339,593
Navistar International Corp., 6.63%, 11/01/25(b)				628		522,810
Novafives SAS, 5.00%, 06/15/25		EUR		100		60,114
RBS Global, Inc., 4.88%, 12/15/25(b)		USD		122		114,070
SPX FLOW, Inc.(b):
5.63%, 08/15/24				331		321,070
5.88%, 08/15/26				8		7,680
Stevens Holding Co., Inc., 6.13%, 10/01/26(b)				80		79,033
Terex Corp., 5.63%, 02/01/25(b)				214		201,181
Titan Acquisition Ltd., 7.75%, 04/15/26(b)				1,506		1,257,510
Wabash National Corp., 5.50%, 10/01/25(b)				335		266,325
						5,439,097

SCHEDULES OF INVESTMENTS 25

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Marine — 0.0%
CMA CGM SA, 6.50%, 07/15/22	EUR		300	$	224,633
Media — 2.2%
Altice Financing SA:
2.25%, 01/15/25			180		175,910
7.50%, 05/15/26(b)	USD		1,963		1,901,951
3.00%, 01/15/28	EUR		147		142,541
5.00%, 01/15/28(b)	USD		292		258,420
AMC Networks, Inc.:
5.00%, 04/01/24			24		23,040
4.75%, 08/01/25			317		308,282
Block Communications, Inc., 4.88%, 03/01/28(b)			254		236,220
Charter Communications Operating LLC, 5.13%, 07/01/49			1,000		1,047,589
Clear Channel Worldwide Holdings, Inc.(b):
9.25%, 02/15/24			659		565,092
5.13%, 08/15/27			1,798		1,701,358
Comcast Corp.:
0.25%, 05/20/27	EUR		100		103,049
1.50%, 02/20/29	GBP		175		206,686
3.40%, 04/01/30	USD		160		173,424
3.75%, 04/01/40			910		1,027,296
4.70%, 10/15/48			305		395,128
4.05%, 11/01/52			500		594,983
CSC Holdings LLC:
6.75%, 11/15/21			92		94,760
5.38%, 07/15/23(b)			213		212,998
5.25%, 06/01/24			308		308,767
10.88%, 10/15/25(b)			1,067		1,153,694
5.50%, 05/15/26(b)			200		206,870
5.38%, 02/01/28(b)			829		845,580
5.75%, 01/15/30(b)			988		996,358
Diamond Sports Group LLC, 5.38%, 08/15/26(b)			311		252,694
Discovery Communications LLC, 3.95%, 03/20/28			250		245,081
DISH DBS Corp.:
6.75%, 06/01/21			475		481,650
5.88%, 07/15/22			900		876,438
5.00%, 03/15/23			534		510,931
7.75%, 07/01/26			283		290,783
DISH Network Corp.(l):
2.38%, 03/15/24			57		45,173
3.38%, 08/15/26			443		359,650
Entercom Media Corp., 6.50%, 05/01/27(b)			303		262,852
Fox Corp., 3.05%, 04/07/25			355		354,446
GCI LLC, 6.63%, 06/15/24(b)			168		166,320
Gray Television, Inc., 5.13%, 10/15/24(b)			7		6,842
iHeartCommunications, Inc., 4.75%, 01/15/28(b)			41		36,900
Interpublic Group of Cos., Inc. (The), 4.65%, 10/01/28			150		153,034
ITV plc, 1.38%, 09/26/26	EUR		175		173,527
Lamar Media Corp., 4.00%, 02/15/30(b)	USD		251		233,430
LCPR Senior Secured Financing DAC, 6.75%, 10/15/27(b)			608		598,880
Meredith Corp., 6.88%, 02/01/26			178		156,159
Midcontinent Communications, 5.38%, 08/15/27(b)			122		118,122
Outfront Media Capital LLC, 5.00%, 08/15/27(b)			464		426,880
Radiate Holdco LLC(b):
6.88%, 02/15/23			98		89,180
6.63%, 02/15/25			149		126,650
RELX Finance BV, 0.50%, 03/10/28	EUR		200		206,087
SES SA, (EUR Swap Annual 5 Year + 5.40%), 5.62%(a)(k)			200		204,723
Sirius XM Radio, Inc.(b):
4.63%, 07/15/24	USD		174		176,598

Security		Par (000)		Value
Media (continued)
5.38%, 07/15/26	USD		3	$	3,060
5.00%, 08/01/27			597		605,895
5.50%, 07/01/29			459		468,180
Summer BC Holdco A SARL, 9.25%, 10/31/27	EUR		90		81,178
Summer BC Holdco B SARL, 5.75%, 10/31/26			400		367,045
Summer BidCo BV:
9.00%, (9.00% Cash or 9.75% PIK), 11/15/25(i)			474		463,527
TEGNA, Inc., 5.50%, 09/15/24(b)	USD		81		76,950
Tele Columbus AG, 3.88%, 05/02/25	EUR		100		91,265
Telenet Finance Luxembourg Notes SARL:
3.50%, 03/01/28			100		103,673
5.50%, 03/01/28(b)	USD		200		186,000
Terrier Media Buyer, Inc., 8.88%, 12/15/27(b)			793		670,085
Univision Communications, Inc.(b):
5.13%, 05/15/23			37		32,745
5.13%, 02/15/25			307		261,718
Videotron Ltd., 5.13%, 04/15/27(b)			530		530,000
VZ Vendor Financing BV, 2.50%, 01/31/24	EUR		212		220,254
WMG Acquisition Corp., 5.50%, 04/15/26(b)	USD		113		110,458
Ziggo Bond Co. BV(b):
6.00%, 01/15/27			330		320,100
5.13%, 02/28/30			600		588,000
Ziggo BV:
5.50%, 01/15/27(b)			606		606,000
2.88%, 01/15/30	EUR		100		100,364
4.88%, 01/15/30(b)	USD		200		194,787
					25,314,310
Metals & Mining — 1.6%
ABJA Investment Co. Pte. Ltd., 5.95%, 07/31/24			257		210,355
Allegheny Technologies, Inc., 5.88%, 12/01/27			188		156,510
Anglo American Capital plc(b):
5.38%, 04/01/25			290		293,047
5.63%, 04/01/30			2,495		2,530,239
Arconic Corp., 6.13%, 02/15/28(b)			407		416,157
BHP Billiton Finance Ltd., (EUR Swap Annual 5 Year + 4.80%), 5.63%, 10/22/79(a)	EUR		100		116,356
Big River Steel LLC, 7.25%, 09/01/25(b)	USD		382		347,620
China Hongqiao Group Ltd., 7.38%, 05/02/23			1,200		854,988
Chinalco Capital Holdings Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 5.79%), 4.10%(a)(k)			525		489,234
Cleveland-Cliffs, Inc., 6.75%, 03/15/26(b)			259		230,510
Constellium SE(b):
5.75%, 05/15/24			602		537,345
5.88%, 02/15/26			1,864		1,621,680
Freeport-McMoRan, Inc.:
3.55%, 03/01/22			17		16,426
3.88%, 03/15/23			1,199		1,133,055
4.25%, 03/01/30			349		303,630
5.45%, 03/15/43			2,197		1,966,315
HBIS Group Hong Kong Co. Ltd., 4.25%, 04/07/20			400		396,250
Joseph T Ryerson & Son, Inc., 11.00%, 05/15/22(b)			57		53,010
JSW Steel Ltd., 5.95%, 04/18/24			200		149,875
Kaiser Aluminum Corp., 4.63%, 03/01/28(b)			260		230,750
New Gold, Inc.(b):
6.25%, 11/15/22			366		355,477
6.38%, 05/15/25			173		160,782
Newmont Corp., 2.80%, 10/01/29			220		204,528
Novelis Corp.(b):
5.88%, 09/30/26			1,459		1,431,812
4.75%, 01/30/30			748		665,720

26 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Metals & Mining (continued)
thyssenkrupp AG:
2.88%, 02/22/24	EUR		599	$	581,361
2.50%, 02/25/25			1		951
Vale Overseas Ltd., 6.25%, 08/10/26	USD		874		935,197
Vedanta Resources Finance II plc:
8.00%, 04/23/23			2,321		879,079
9.25%, 04/23/26			2,820		1,137,870
Vedanta Resources Ltd., 6.13%, 08/09/24			1,002		380,134
					18,786,263
Multiline Retail — 0.2%
B&M European Value Retail SA, 4.13%, 02/01/22	GBP		100		109,889
El Puerto de Liverpool SAB de CV, 3.88%, 10/06/26	USD		343		292,836
Future Retail Ltd., 5.60%, 01/22/25			2,850		1,428,563
SACI Falabella, 4.38%, 01/27/25			600		566,332
					2,397,620
Multi-Utilities — 0.0%
Consumers Energy Co., 3.10%, 08/15/50			160		155,787
E.ON SE, 1.00%, 10/07/25	EUR		125		137,242
					293,029
Oil, Gas & Consumable Fuels — 2.5%
Apache Corp., 3.25%, 04/15/22	USD		9		6,757
Ascent Resources Utica Holdings LLC, 10.00%, 04/01/22(b)			416		243,360
Baytex Energy Corp., 8.75%, 04/01/27(b)			230		87,745
Buckeye Partners LP:
4.13%, 03/01/25(b)			103		86,829
3.95%, 12/01/26			45		36,886
4.50%, 03/01/28(b)			233		191,060
5.85%, 11/15/43			104		69,649
5.60%, 10/15/44			136		85,680
Callon Petroleum Co.:
6.25%, 04/15/23			335		79,563
6.13%, 10/01/24			295		52,362
8.25%, 07/15/25			177		28,320
6.38%, 07/01/26			149		24,957
Centennial Resource Production LLC, 6.88%, 04/01/27(b)			199		48,755
Cheniere Corpus Christi Holdings LLC, 5.13%, 06/30/27			500		444,054
Cheniere Energy Partners LP:
5.63%, 10/01/26			194		178,480
4.50%, 10/01/29(b)			378		328,860
Chesapeake Energy Corp., 11.50%, 01/01/25(b)			415		70,550
Cimarex Energy Co., 4.38%, 06/01/24			16		12,609
CNX Resources Corp., 5.88%, 04/15/22			361		330,315
Comstock Resources, Inc.:
7.50%, 05/15/25(b)			228		148,200
9.75%, 08/15/26			74		52,710
Continental Resources, Inc., 5.00%, 09/15/22			23		14,673
Crestwood Midstream Partners LP:
6.25%, 04/01/23(e)			60		33,612
5.63%, 05/01/27(b)			265		145,673
CrownRock LP, 5.63%, 10/15/25(b)			1,218		633,360
CVR Energy, Inc.(b):
5.25%, 02/15/25			185		143,837
5.75%, 02/15/28			62		46,345
DCP Midstream Operating LP:
5.38%, 07/15/25			12		8,194
5.13%, 05/15/29			25		15,749
6.45%, 11/03/36(b)			39		18,708
6.75%, 09/15/37(b)			509		274,860
Denbury Resources, Inc., 9.00%, 05/15/21(b)			192		56,160

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Diamondback Energy, Inc., 3.50%, 12/01/29	USD		19	$	12,919
Enbridge, Inc.:
4.00%, 10/01/23			514		482,688
(LIBOR USD 3 Month + 3.64%), 6.25%, 03/01/78(a)			360		270,000
Endeavor Energy Resources LP(b):
5.50%, 01/30/26			511		352,697
5.75%, 01/30/28			148		100,640
Energy Transfer Operating LP:
5.15%, 02/01/43			150		112,866
5.00%, 05/15/50			1,060		825,151
Energy Transfer Partners LP, 5.88%, 03/01/22			500		469,686
EnLink Midstream LLC, 5.38%, 06/01/29			44		22,880
EnLink Midstream Partners LP:
4.40%, 04/01/24			85		42,899
4.15%, 06/01/25			4		1,939
4.85%, 07/15/26			126		61,954
5.60%, 04/01/44			105		35,438
5.05%, 04/01/45			14		5,106
Enterprise Products Operating LLC:
4.80%, 02/01/49			320		319,961
3.95%, 01/31/60			320		268,900
EQT Corp.:
3.90%, 10/01/27			62		42,762
7.00%, 02/01/30(e)			19		14,155
Extraction Oil & Gas, Inc.(b):
7.38%, 05/15/24			375		66,563
5.63%, 02/01/26			317		52,305
Genesis Energy LP:
6.00%, 05/15/23			212		153,774
5.63%, 06/15/24			169		118,300
6.50%, 10/01/25			27		19,515
7.75%, 02/01/28			83		57,785
Great Western Petroleum LLC, 9.00%, 09/30/21(b)			179		114,560
Greenko Dutch BV, 5.25%, 07/24/24			200		160,464
Greenko Mauritius Ltd., 6.25%, 02/21/23			200		176,448
Greenko Solar Mauritius Ltd.:
5.55%, 01/29/25			200		162,805
5.95%, 07/29/26			200		161,271
Hess Corp., 5.80%, 04/01/47			500		332,815
Hess Midstream Operations LP(b):
5.63%, 02/15/26			100		70,607
5.13%, 06/15/28			125		87,850
Holly Energy Partners LP, 5.00%, 02/01/28(b)			165		138,188
HPCL-Mittal Energy Ltd., 5.45%, 10/22/26			256		194,160
Indigo Natural Resources LLC, 6.88%, 02/15/26(b)			358		236,280
Ithaca Energy North Sea plc, 9.38%, 07/15/24(b)			200		94,000
Kinder Morgan Energy Partners LP, 3.50%, 03/01/21			500		493,548
Kinder Morgan, Inc., 5.55%, 06/01/45			250		254,807
Matador Resources Co., 5.88%, 09/15/26			282		82,626
Medco Bell Pte. Ltd., 6.38%, 01/30/27			800		464,000
Medco Oak Tree Pte. Ltd., 7.38%, 05/14/26			515		304,494
MEG Energy Corp.(b):
7.00%, 03/31/24			41		18,911
6.50%, 01/15/25			411		259,958
7.13%, 02/01/27			260		128,471
Mongolian Mining Corp.:
9.25%, 04/15/24			2,100		1,254,750
MPLX LP:
(LIBOR USD 3 Month + 1.10%), 2.10%, 09/09/22(a)			2,195		2,042,180
6.38%, 05/01/24(b)			93		83,427

SCHEDULES OF INVESTMENTS 27

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
5.50%, 02/15/49	USD		375	$	316,254
Murphy Oil Corp.:
5.75%, 08/15/25			19		10,167
5.87%, 12/01/42(e)			16		6,558
Neerg Energy Ltd., 6.00%, 02/13/22			2,400		1,981,200
Neptune Energy Bondco plc, 6.63%, 05/15/25(b)			400		224,000
NGPL PipeCo LLC, 7.77%, 12/15/37(b)			122		121,453
NuStar Logistics LP, 6.00%, 06/01/26			162		119,880
Occidental Petroleum Corp.:
Series 1, 4.10%, 02/01/21			137		116,448
4.85%, 03/15/21			103		86,468
2.60%, 08/13/21			209		164,335
2.70%, 08/15/22			143		101,966
Parkland Fuel Corp., 5.88%, 07/15/27(b)			147		137,798
Parsley Energy LLC(b):
5.38%, 01/15/25			579		447,266
5.25%, 08/15/25			43		32,680
5.63%, 10/15/27			28		19,740
4.13%, 02/15/28			270		183,600
PBF Holding Co. LLC:
7.25%, 06/15/25			113		75,744
6.00%, 02/15/28(b)			82		54,120
PDC Energy, Inc.:
1.13%, 09/15/21(l)			405		330,339
6.13%, 09/15/24			37		19,749
6.25%, 12/01/25			38		18,614
5.75%, 05/15/26			90		50,400
QEP Resources, Inc.:
6.88%, 03/01/21			66		33,660
5.38%, 10/01/22			213		100,110
5.25%, 05/01/23			198		73,260
5.63%, 03/01/26			200		73,000
Range Resources Corp.:
5.88%, 07/01/22			17		12,240
5.00%, 08/15/22			107		80,218
5.00%, 03/15/23			157		114,610
Reliance Industries Ltd., 4.13%, 01/28/25			750		747,187
ReNew Power Pvt Ltd., 5.88%, 03/05/27			800		559,940
ReNew Power Synthetic:
6.67%, 03/12/24(b)			200		159,625
6.67%, 03/12/24			1,000		795,313
Santos Finance Ltd., 5.25%, 03/13/29			500		513,441
Sinopec Capital 2013 Ltd., 3.13%, 04/24/23			900		921,933
SM Energy Co.:
1.50%, 07/01/21(l)			527		190,312
6.13%, 11/15/22			156		66,008
5.00%, 01/15/24			156		51,480
5.63%, 06/01/25			38		10,355
6.75%, 09/15/26			52		15,600
6.63%, 01/15/27			69		20,084
Southwestern Energy Co., 4.10%, 03/15/22			176		132,000
Sunoco LP:
4.88%, 01/15/23			83		79,265
5.50%, 02/15/26			16		13,844
6.00%, 04/15/27			56		48,160
5.88%, 03/15/28			36		29,880
Tallgrass Energy Partners LP(b):
5.50%, 09/15/24			173		95,150
6.00%, 03/01/27			90		47,700
5.50%, 01/15/28			70		36,400
Targa Resources Partners LP:
4.25%, 11/15/23			57		49,060
5.13%, 02/01/25			98		83,535
5.88%, 04/15/26			11		9,130
5.38%, 02/01/27			15		12,345

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
6.50%, 07/15/27	USD		122	$	104,005
5.00%, 01/15/28			362		291,795
6.88%, 01/15/29			841		677,005
5.50%, 03/01/30(b)			282		217,817
Tengizchevroil Finance Co. International Ltd., 4.00%, 08/15/26			1,100		1,038,812
TerraForm Power Operating LLC(b):
4.25%, 01/31/23			427		423,798
4.75%, 01/15/30			215		208,550
Transportadora de Gas Internacional SA ESP, 5.55%, 11/01/28(b)			350		334,057
Viper Energy Partners LP, 5.38%, 11/01/27(b)			93		78,120
WPX Energy, Inc.:
8.25%, 08/01/23			106		77,910
5.75%, 06/01/26			98		55,860
5.25%, 10/15/27			75		41,250
4.50%, 01/15/30			532		288,876
					28,857,854
Paper & Forest Products — 0.1%
Fibria Overseas Finance Ltd., 4.00%, 01/14/25			450		415,969
Norbord, Inc., 6.25%, 04/15/23(b)			98		94,570
Suzano Austria GmbH, 7.00%, 03/16/47(b)			265		250,756
WEPA Hygieneprodukte GmbH, (EURIBOR 3 Month + 2.88%), 2.88%, 12/15/26(a)	EUR		100		96,779
					858,074
Personal Products — 0.2%
Coty, Inc.:
4.00%, 04/15/23			100		92,092
4.75%, 04/15/26			200		180,655
6.50%, 04/15/26(b)	USD		100		88,500
Top Glove Labuan Ltd., 2.00%, 03/01/24(l)			1,000		1,084,086
Unilever NV:
1.13%, 02/12/27	EUR		175		197,390
1.63%, 02/12/33			125		141,806
					1,784,529
Pharmaceuticals — 1.2%
Allergan, Inc., 2.80%, 03/15/23	USD		1,012		1,006,151
Bausch Health Americas, Inc., 8.50%, 01/31/27(b)			175		182,875
Bausch Health Cos., Inc.:
4.50%, 05/15/23	EUR		100		105,539
5.88%, 05/15/23(b)	USD		15		14,925
6.13%, 04/15/25(b)			194		191,090
5.50%, 11/01/25(b)			155		156,597
9.00%, 12/15/25(b)			715		753,753
5.75%, 08/15/27(b)			216		222,394
7.00%, 01/15/28(b)			543		557,335
5.00%, 01/30/28(b)			93		88,043
7.25%, 05/30/29(b)			504		523,051
5.25%, 01/30/30(b)			433		409,427
Bayer AG, (EUR Swap Annual 5 Year + 2.55%), 3.75%, 07/01/74(a)	EUR		300		311,645
Catalent Pharma Solutions, Inc.:
4.88%, 01/15/26(b)	USD		372		360,840
5.00%, 07/15/27(b)			234		226,980
2.38%, 03/01/28	EUR		494		501,731
Cheplapharm Arzneimittel GmbH, 3.50%, 02/11/27			296		298,709
Diocle Spa, (EURIBOR 3 Month + 3.88%), 3.87%, 06/30/26(a)			146		142,506
Elanco Animal Health, Inc., 5.65%, 08/28/28(e)	USD		106		111,761
Endo DAC, 6.00%, 07/15/23(b)			200		144,876
Luye Pharma Group Ltd., 1.50%, 07/09/24(l)			1,500		1,414,342
Nidda BondCo GmbH, 5.00%, 09/30/25	EUR		200		189,829

28 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Pharmaceuticals (continued)
Nidda Healthcare Holding GmbH, 3.50%, 09/30/24	EUR		422	$	429,353
Par Pharmaceutical, Inc., 7.50%, 04/01/27(b)	USD		1,238		1,231,810
Pfizer, Inc., 2.63%, 04/01/30			90		94,632
Rossini SARL, 6.75%, 10/30/25	EUR		562		619,778
Sanofi:
1.00%, 04/01/25			100		112,998
Series 12FX, 1.38%, 03/21/30			200		231,917
Takeda Pharmaceutical Co. Ltd.:
2.25%, 11/21/26			125		144,591
5.00%, 11/26/28	USD		1,000		1,139,970
3.00%, 11/21/30	EUR		175		201,284
Teva Pharmaceutical Finance Netherlands II BV:
1.88%, 03/31/27			100		88,714
1.63%, 10/15/28			100		85,096
Viva Incubator Investment Management Ltd., 2.50%, 02/11/25(l)	USD		1,000		986,250
					13,280,792
Professional Services — 0.3%
ASGN, Inc., 4.63%, 05/15/28(b)			247		229,438
Dun & Bradstreet Corp. (The)(b):
6.88%, 08/15/26			729		758,160
10.25%, 02/15/27			1,628		1,725,680
Intertrust Group BV, 3.38%, 11/15/25	EUR		100		104,996
Jaguar Holding Co. II, 6.38%, 08/01/23(b)	USD		892		907,610
					3,725,884
Real Estate Management & Development — 8.4%
ADLER Real Estate AG:
1.50%, 04/17/22	EUR		100		103,011
3.00%, 04/27/26			100		95,612
Agile Group Holdings Ltd.:
6.70%, 03/07/22	USD		256		245,586
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 9.22%), 6.87%(a)(k)			200		165,000
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 11.29%), 7.88%(a)(k)			200		159,518
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 11.08%), 7.75%(a)(k)			795		601,998
Alam Synergy Pte. Ltd., 11.50%, 04/22/21			280		222,513
Aldar Sukuk No. 2 Ltd., 3.88%, 10/22/29			725		653,406
APL Realty Holdings Pte. Ltd., 5.95%, 06/02/24			2,400		1,379,628
Central China Real Estate Ltd.:
6.88%, 10/23/20			850		833,000
6.88%, 02/10/21			710		670,950
6.75%, 11/08/21			745		640,849
6.88%, 08/08/22			200		163,500
7.25%, 04/24/23			1,800		1,386,000
CFLD Cayman Investment Ltd.:
8.63%, 02/28/21			200		193,000
6.90%, 01/13/23			800		655,336
8.60%, 04/08/24			2,281		1,840,482
China Aoyuan Group Ltd.:
7.95%, 09/07/21			416		403,125
8.50%, 01/23/22			200		191,916
7.95%, 02/19/23			2,257		2,069,579
China Evergrande Group:
6.25%, 06/28/21			200		172,516
9.50%, 04/11/22			200		162,250
11.50%, 01/22/23			770		621,275
4.25%, 02/14/23(l)	HKD		10,000		1,025,021

Security		Par (000)		Value
Real Estate Management & Development (continued)
12.00%, 01/22/24	USD		1,270	$	950,119
China Resources Land Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 5.14%), 3.75%(a)(k)			905		906,131
China SCE Group Holdings Ltd.:
7.45%, 04/17/21			300		291,327
5.88%, 03/10/22			800		717,764
7.25%, 04/19/23			1,400		1,204,000
7.38%, 04/09/24			1,000		876,875
CIFI Holdings Group Co. Ltd.:
7.63%, 02/28/23			200		192,137
6.55%, 03/28/24			808		747,489
6.45%, 11/07/24			200		181,454
6.00%, 07/16/25			800		704,000
Citycon OYJ, (EUR Swap Annual 5 Year + 4.71%), 4.50%(a)(k)	EUR		100		81,173
Consus Real Estate AG, 9.63%, 05/15/24			100		89,335
Country Garden Holdings Co. Ltd.:
8.00%, 01/27/24	USD		200		204,000
6.50%, 04/08/24			200		194,937
6.15%, 09/17/25			950		912,000
5.13%, 01/14/27			1,200		1,111,500
5.63%, 01/14/30			1,200		1,117,500
Easy Tactic Ltd.:
9.13%, 07/28/22			200		181,748
8.13%, 02/27/23			600		519,000
8.13%, 07/11/24			870		711,769
Elect Global Investments Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.89%), 4.10%(a)(k)			2,550		2,384,773
Emaar Sukuk Ltd., 3.64%, 09/15/26			300		268,500
Esic Sukuk Ltd., 3.94%, 07/30/24			500		425,000
Fantasia Holdings Group Co. Ltd.:
8.38%, 03/08/21			200		181,000
15.00%, 12/18/21			200		186,000
11.75%, 04/17/22			1,650		1,419,825
7.95%, 07/05/22			750		607,968
12.25%, 10/18/22			755		623,819
Five Point Operating Co. LP, 7.88%, 11/15/25(b)			1,599		1,375,140
Global Prime Capital Pte. Ltd.:
5.50%, 10/18/23			200		159,130
5.95%, 01/23/25			1,100		855,459
Greenland Global Investment Ltd.:
(LIBOR USD 3 Month + 4.85%), 6.08%, 09/26/21(a)			1,000		955,000
7.25%, 03/12/22			200		186,868
5.60%, 11/13/22			200		172,500
Greystar Real Estate Partners LLC, 5.75%, 12/01/25(b)			22		19,911
Heimstaden Bostad AB, (EUR Swap Annual 5 Year + 3.67%), 3.25%(a)(k)	EUR		150		133,589
Hong Seng Ltd., 9.88%, 08/27/22	USD		800		753,000
Hopson Development Holdings Ltd., 7.50%, 06/27/22			200		183,494
Howard Hughes Corp. (The), 5.38%, 03/15/25(b)			618		597,915
JGC Ventures Pte. Ltd., 10.75%, 08/30/21			1,500		1,279,725
Jingrui Holdings Ltd.:
9.45%, 04/23/21			200		186,000
10.88%, 10/04/21			1,800		1,674,000
Jinke Properties Group Co. Ltd., 8.38%, 06/20/21			1,800		1,710,000
Kaisa Group Holdings Ltd.:
11.25%, 04/09/22			200		178,250
11.95%, 10/22/22			1,200		1,034,250
11.50%, 01/30/23			1,556		1,304,325

SCHEDULES OF INVESTMENTS 29

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Real Estate Management & Development (continued)
9.38%, 06/30/24	USD		1,800	$	1,392,750
KWG Group Holdings Ltd.:
7.88%, 08/09/21			200		192,433
7.88%, 09/01/23			700		651,952
7.40%, 03/05/24			200		180,662
Leading Affluence Ltd., 4.50%, 01/24/23			400		412,580
Logan Property Holdings Co. Ltd.:
7.50%, 08/25/22			200		189,750
6.50%, 07/16/23			2,800		2,619,750
5.75%, 01/14/25			200		175,000
MAF Global Securities Ltd., 4.75%, 05/07/24			660		636,900
Modern Land China Co. Ltd.:
12.85%, 10/25/21			1,329		1,289,130
11.80%, 02/26/22			1,100		990,000
New Metro Global Ltd.:
6.50%, 04/23/21			200		191,500
7.13%, 05/23/21			700		665,868
7.50%, 12/16/21			1,095		1,018,350
6.80%, 08/05/23			945		812,700
Newmark Group, Inc., 6.13%, 11/15/23			99		100,706
No Va Land Investment Group Corp., 5.50%, 04/27/23(l)			1,376		1,330,065
NWD MTN Ltd., 4.13%, 07/18/29			1,200		1,150,875
Peach Property Finance GmbH, 3.50%, 02/15/23	EUR		100		104,990
Powerlong Real Estate Holdings Ltd.:
5.95%, 07/19/20	USD		1,751		1,716,208
7.13%, 11/08/22			750		673,702
Redco Properties Group Ltd., 11.50%, 12/08/20			1,120		1,087,800
Redsun Properties Group Ltd.:
9.95%, 04/11/22			2,400		2,021,160
9.70%, 04/16/23			550		471,625
RKPF Overseas 2019 A Ltd.:
7.88%, 02/01/23			200		191,000
6.70%, 09/30/24			200		178,812
Ronshine China Holdings Ltd.:
11.25%, 08/22/21			460		451,950
10.50%, 03/01/22			200		189,750
8.95%, 01/22/23			2,460		2,274,885
8.10%, 06/09/23			200		179,736
Scenery Journey Ltd.:
11.00%, 11/06/20			3,000		2,859,375
11.50%, 10/24/22			2,695		2,010,928
13.00%, 11/06/22			700		541,944
13.75%, 11/06/23			750		585,703
Seazen Group Ltd., 7.50%, 01/22/21			1,000		973,750
Shimao Property Holdings Ltd.:
6.13%, 02/21/24			200		198,875
5.60%, 07/15/26			2,400		2,311,500
Shui On Development Holding Ltd., 5.75%, 11/12/23			200		175,666
Singha Estate PCL, 2.00%, 07/20/22(l)			1,450		1,392,174
Sino-Ocean Land Treasure IV Ltd., 4.75%, 08/05/29			1,060		973,544
Summit Properties Ltd., 2.00%, 01/31/25	EUR		100		92,573
Sunac China Holdings Ltd.:
7.25%, 06/14/22	USD		200		187,887
7.95%, 10/11/23			1,400		1,282,313
7.50%, 02/01/24			200		179,850
Theta Capital Pte. Ltd., 6.75%, 10/31/26			200		134,688
Times China Holdings Ltd.:
7.63%, 02/21/22			1,000		960,650
6.75%, 07/16/23			322		290,504
TLG Finance SARL, (EUR Swap Annual 5 Year + 3.98%), 3.38%(a)(k)	EUR		200		205,771

Security		Par (000)		Value
Real Estate Management & Development (continued)
Unique Pub Finance Co. plc (The), Series N, 6.46%, 03/30/32(e)	GBP		300	$	416,717
Vanke Real Estate Hong Kong Co. Ltd., 3.50%, 11/12/29	USD		350		334,687
Vonovia Finance BV:
0.88%, 07/03/23	EUR		100		108,447
1.50%, 01/14/28			200		213,609
Wanda Group Overseas Ltd., 7.50%, 07/24/22	USD		960		845,520
Wanda Properties Overseas Ltd., 6.88%, 07/23/23			615		485,850
Yango Justice International Ltd.:
10.25%, 03/18/22			1,275		1,148,520
10.00%, 02/12/23			200		174,250
9.25%, 04/15/23			535		442,932
8.25%, 11/25/23			680		544,088
Yanlord Land HK Co. Ltd.:
6.75%, 04/23/23			200		186,063
6.80%, 02/27/24			200		174,200
Yuzhou Properties Co. Ltd.:
8.63%, 01/23/22			200		189,882
8.50%, 02/04/23			200		183,814
6.00%, 10/25/23			1,565		1,287,337
8.50%, 02/26/24			200		177,625
7.70%, 02/20/25			950		792,362
8.30%, 05/27/25			1,200		994,125
Zhenro Properties Group Ltd.:
9.80%, 08/20/21			340		324,169
9.15%, 03/08/22			890		817,688
8.70%, 08/03/22			1,400		1,129,338
7.88%, 04/14/24			550		418,687
					95,694,964
Road & Rail — 0.2%
Capitol Investment Merger Sub 2 LLC, 10.00%, 08/01/24(b)			271		243,900
CSX Corp., 3.80%, 04/15/50			560		585,154
Deutsche Bahn Finance GmbH, (EUR Swap Annual 5 Year + 1.26%), 0.95%(a)(k)	EUR		200		209,551
Lima Metro Line 2 Finance Ltd., 4.35%, 04/05/36(b)	USD		200		190,000
Pacific National Finance Pty. Ltd., 4.75%, 03/22/28			300		301,074
Penske Truck Leasing Co. LP, 2.70%, 11/01/24(b)			330		307,925
Uber Technologies, Inc.(b):
7.50%, 11/01/23			363		353,039
8.00%, 11/01/26			282		279,885
7.50%, 09/15/27			60		59,232
Union Pacific Corp., 3.75%, 02/05/70			175		180,482
					2,710,242
Semiconductors & Semiconductor Equipment — 0.7%
Advanced Micro Devices, Inc., 7.50%, 08/15/22			29		30,740
Entegris, Inc., 4.63%, 02/10/26(b)			80		76,000
Global A&T Electronics Ltd., 8.50%, 01/12/23			1,400		1,320,494
Infineon Technologies AG, (EUR Swap Annual 5 Year + 3.39%), 2.87%(a)(k)	EUR		300		309,558
KLA Corp., 3.30%, 03/01/50	USD		560		524,652
Lam Research Corp.:
3.75%, 03/15/26			320		339,435
4.88%, 03/15/49			245		315,978
Microchip Technology, Inc., 1.63%, 02/15/25(l)			69		100,007
NVIDIA Corp.:
2.85%, 04/01/30			20		20,872
3.50%, 04/01/50			2,035		2,212,719
3.70%, 04/01/60			1,295		1,447,527

30 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Semiconductors & Semiconductor Equipment (continued)
NXP BV, 5.35%, 03/01/26(b)	USD		500	$	540,601
ON Semiconductor Corp., 1.00%, 12/01/20(l)			220		218,545
Qorvo, Inc.:
5.50%, 07/15/26			169		176,647
4.38%, 10/15/29(b)			64		59,520
QUALCOMM, Inc., 4.30%, 05/20/47			195		233,994
Sensata Technologies UK Financing Co. plc, 6.25%, 02/15/26(b)			200		196,000
					8,123,289
Software — 2.1%
ACI Worldwide, Inc., 5.75%, 08/15/26(b)			719		711,810
Ascend Learning LLC:
6.88%, 08/01/25(b)			673		652,810
Camelot Finance SA, 4.50%, 11/01/26(b)			657		637,290
Castle US Holding Corp., 9.50%, 02/15/28(b)			272		258,400
CDK Global, Inc.:
4.88%, 06/01/27			496		508,400
5.25%, 05/15/29(b)			598		609,960
Celestial Dynasty Ltd., 4.25%, 06/27/29			800		808,000
Change Healthcare Holdings LLC, 5.75%, 03/01/25(b)			1,241		1,141,720
Fair Isaac Corp., 4.00%, 06/15/28(b)			130		123,175
Genesys Telecommunications Laboratories, Inc., 10.00%, 11/30/24(b)			983		1,005,403
Infor US, Inc., 6.50%, 05/15/22			712		699,540
Nuance Communications, Inc., 5.63%, 12/15/26			699		680,253
Open Text Corp., 3.88%, 02/15/28(b)			340		319,600
Open Text Holdings, Inc., 4.13%, 02/15/30(b)			674		633,728
Oracle Corp.:
2.95%, 04/01/30			1,634		1,645,251
4.00%, 11/15/47			1,000		1,096,899
3.60%, 04/01/50			8,000		8,000,202
PTC, Inc.:
6.00%, 05/15/24			108		111,134
3.63%, 02/15/25(b)			137		128,095
4.00%, 02/15/28(b)			204		195,901
RP Crown Parent LLC, 7.38%, 10/15/24(b)			474		451,627
SAP SE, 1.25%, 03/10/28	EUR		200		226,960
Solera LLC, 10.50%, 03/01/24(b)	USD		1,794		1,758,120
Sophia LP, 9.00%, 09/30/23(b)			135		135,000
SS&C Technologies, Inc., 5.50%, 09/30/27(b)			830		865,034
Veritas US, Inc., 7.50%, 02/01/23(b)			200		176,000
					23,580,312
Specialty Retail — 0.6%
Asbury Automotive Group, Inc.(b):
4.50%, 03/01/28			136		115,600
4.75%, 03/01/30			132		112,200
eG Global Finance plc:
3.63%, 02/07/24	EUR		175		146,219
4.38%, 02/07/25			289		241,922
6.75%, 02/07/25(b)	USD		1,400		1,148,000
6.25%, 10/30/25	EUR		568		498,022
8.50%, 10/30/25(b)	USD		200		178,000
Group 1 Automotive, Inc., 5.25%, 12/15/23(b)			11		11,289
Home Depot, Inc. (The), 2.70%, 04/15/30			45		45,757
L Brands, Inc.:
6.88%, 11/01/35			187		138,380
6.75%, 07/01/36			8		5,760
Murphy Oil USA, Inc., 4.75%, 09/15/29			152		142,500
Penske Automotive Group, Inc., 5.50%, 05/15/26			166		151,425
PetSmart, Inc.(b):
7.13%, 03/15/23			267		248,644

Security		Par (000)		Value
Specialty Retail (continued)
5.88%, 06/01/25	USD		1,590	$	1,566,150
SRS Distribution, Inc., 8.25%, 07/01/26(b)			1,364		1,036,640
Staples, Inc., 7.50%, 04/15/26(b)			1,762		1,557,167
					7,343,675
Technology Hardware, Storage & Peripherals — 0.2%
Dell International LLC, 7.13%, 06/15/24(b)			405		418,163
NCR Corp.(b):
5.75%, 09/01/27			129		117,390
6.13%, 09/01/29			420		392,238
Nuoxi Capital Ltd., 7.88%, 06/24/21			600		149,137
Western Digital Corp., 4.75%, 02/15/26			600		609,000
Xerox Corp., 4.80%, 03/01/35			144		116,640
					1,802,568
Textiles, Apparel & Luxury Goods — 0.6%
Delta Merlin Dunia Tekstil PT, 8.63%, 03/12/24			600		76,313
European TopSoho SARL, Series SMCP, 4.00%, 09/21/21(l)	EUR		200		87,019
Levi Strauss & Co., 3.38%, 03/15/27			100		101,996
LVMH Moet Hennessy Louis Vuitton SE, 0.13%, 02/11/28			300		310,712
NIKE, Inc.:
2.85%, 03/27/30	USD		395		417,351
3.25%, 03/27/40			2,270		2,379,056
3.38%, 03/27/50			2,250		2,454,531
Prime Bloom Holdings Ltd., 6.95%, 07/05/22			955		443,855
William Carter Co. (The), 5.63%, 03/15/27(b)			219		211,883
					6,482,716
Thrifts & Mortgage Finance — 0.3%
Ladder Capital Finance Holdings LLLP, 4.25%, 02/01/27(b)			691		545,890
Mongolian Mortgage Corp. HFC LLC, 9.75%, 01/29/22			2,100		1,671,469
Nationstar Mortgage Holdings, Inc.(b):
8.13%, 07/15/23			728		711,838
9.13%, 07/15/26			79		71,495
6.00%, 01/15/27			431		366,350
					3,367,042
Tobacco — 0.1%
Altria Group, Inc.:
3.80%, 02/14/24			245		248,329
4.40%, 02/14/26			120		126,279
5.95%, 02/14/49			485		560,825
BAT Capital Corp., (EURIBOR 3 Month + 0.50%), 0.09%, 08/16/21(a)	EUR		100		108,991
					1,044,424
Trading Companies & Distributors — 0.4%
Air Lease Corp., 3.88%, 07/03/23	USD		125		104,065
Beacon Roofing Supply, Inc.(b):
4.88%, 11/01/25			125		112,812
4.50%, 11/15/26			80		73,824
BOC Aviation Ltd., 3.00%, 09/11/29			1,000		960,525
HD Supply, Inc., 5.38%, 10/15/26(b)			1,900		1,847,028
Herc Holdings, Inc., 5.50%, 07/15/27(b)			542		504,060
United Rentals North America, Inc.:
5.50%, 07/15/25			24		23,520
4.63%, 10/15/25			177		169,920
5.88%, 09/15/26			117		118,498
6.50%, 12/15/26			7		7,105
3.88%, 11/15/27			131		123,795
5.25%, 01/15/30			63		62,981
4.00%, 07/15/30			266		238,070
					4,346,203

SCHEDULES OF INVESTMENTS 31

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Transportation Infrastructure — 0.2%
Adani Ports & Special Economic Zone Ltd., 4.38%, 07/03/29	USD		200	$	164,100
ASTM SpA, 1.63%, 02/08/28	EUR		100		100,958
Atlantia SpA, 1.63%, 02/03/25			304		273,657
Autostrade per l’Italia SpA:
2.88%, 02/26/21			100		105,051
5.88%, 06/09/24			300		334,179
4.38%, 09/16/25			200		212,860
DP World Crescent Ltd., 3.91%, 05/31/23	USD		700		667,844
Royal Capital BV, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 5.93%), 4.88%(a)(k)			219		206,955
					2,065,604
Wireless Telecommunication Services — 0.9%
Altice France Holding SA, 8.00%, 05/15/27(b)	EUR		100		108,273
Connect Finco SARL, 6.75%, 10/01/26(b)	USD		1,729		1,428,586
Digicel International Finance Ltd., 8.75%, 05/25/24(b)			200		176,000
Gogo Intermediate Holdings LLC, 9.88%, 05/01/24(b)			1,454		1,148,660
Hughes Satellite Systems Corp., 5.25%, 08/01/26			290		287,100
Matterhorn Telecom SA, 4.00%, 11/15/27	EUR		150		144,954
Oztel Holdings SPC Ltd., 6.63%, 04/24/28	USD		731		497,994
SoftBank Group Corp.:
(USD Swap Rate 5 Year + 4.23%), 6.00%(a)(k)			200		150,000
4.50%, 04/20/25	EUR		200		197,728
4.75%, 07/30/25			485		487,509
3.13%, 09/19/25			100		92,630
5.00%, 04/15/28			500		486,158
4.00%, 09/19/29			200		176,429
Sprint Corp.:
7.88%, 09/15/23	USD		296		324,884
7.13%, 06/15/24			115		126,230
7.63%, 02/15/25			74		81,770
7.63%, 03/01/26			418		473,092
Telefonica Europe BV(a)(k):
(EUR Swap Annual 5 Year + 3.86%), 3.75%	EUR		100		107,197
(EUR Swap Annual 5 Year + 2.33%), 2.63%			100		103,079
(EUR Swap Annual 10 Year + 4.30%), 5.87%			200		225,606
(EUR Swap Annual 6 Year + 4.11%), 4.37%			200		214,445
(EUR Swap Annual 8 Year + 2.97%), 3.88%			300		310,154
T-Mobile USA, Inc.:
6.00%, 03/01/23	USD		90		90,496
6.38%, 03/01/25			10		10,213
6.50%, 01/15/26			318		333,900
4.50%, 02/01/26			375		383,437
4.75%, 02/01/28			285		296,913
Vodafone Group plc:
4.38%, 05/30/28			350		369,647
2.50%, 05/24/39	EUR		100		106,180
(EUR Swap Annual 5 Year + 3.43%), 4.20%, 10/03/78(a)			568		601,389
(EUR Swap Annual 5 Year + 2.67%), 3.10%, 01/03/79(a)			400		424,065
Xplornet Communications, Inc., 9.63%, (9.63% Cash or 10.63% PIK), 06/01/22(b)(i)	USD		106		98,703
Ypso Finance Bis SA:
8.00%, 05/15/27	EUR		200		216,546

Security		Par (000)			Value
Wireless Telecommunication Services (continued)
6.00%, 02/15/28(b)	USD		584		$	513,733
						10,793,700
Total Corporate Bonds — 54.8% (Cost: $681,816,690)						624,374,034
Floating Rate Loan Interests — 16.2%(j)
Aerospace & Defense — 0.5%
Arconic Rolled Products Corp., Term Loan B, 02/04/27(c)(n)			304			273,600
Bleriot US Bidco, Inc., Delayed Draw Term Loan, 10/31/26(n)			50			44,282
Bleriot US Bidco, Inc., Term Loan B, 10/30/26(n)			322			283,409
Dynasty Acquisition Co., Inc., Term Loan:
04/06/26(n)			2,634			2,084,291
Sequa Mezzanine Holdings LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 6.74%, 11/28/21			631			503,137
TransDigm, Inc., Term Loan:
(LIBOR USD 1 Month + 2.25%), 3.24%, 08/22/24			356			329,427
12/09/25(n)			2,156			1,956,857
						5,475,003
Airlines — 0.1%
American Airlines, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 2.70%, 12/15/23			1,008			791,406
American Airlines, Inc., Term Loan B23, 04/28/23(n)			—	(o)		145
Kestrel Bidco, Inc., Term Loan, 12/11/26(n)			981			745,647
						1,537,198
Auto Components — 0.2%
Panther BF Aggregator 2 LP, Term Loan B, 04/30/26(c)(n)			1,715			1,560,479
Wand Newco 3, Inc., Term Loan, (LIBOR USD 3 Month + 3.00%), 4.07%, 02/05/26			725			645,026
						2,205,505
Automobiles — 0.1%
Dealer Tire LLC, Term Loan B1, 12/12/25(n)			778			630,013
Building Products — 0.1%(n)
CPG Merger Sub LLC, Term Loan, 05/05/24			671			556,575
Wilsonart LLC, 1st Lien Term Loan B, 12/19/23			876			700,563
						1,257,138
Capital Markets — 0.2%
Deerfield Holdings Corp., Term Loan, 02/13/25(c)(n)			1,194			1,170,606
Greenhill & Co., Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 3.86%, 04/12/24(c)			487			424,102
Jefferies Finance LLC, Term Loan, 06/03/26(n)			671			554,667
Travelport Finance (Luxembourg) SA, 1st Lien Term Loan, 05/29/26(n)			966			618,653
						2,768,028
Chemicals — 0.5%
Alpha 3 BV, Term Loan, 01/31/24(c)(n)			1,559			1,418,528
Ascend Performance Materials LLC, Term Loan B, (LIBOR USD 3 Month + 5.25%), 6.70%, 08/14/26(c)			1,094			919,337
Chemours Co. (The), 1st Lien Term Loan, (LIBOR USD 1 Month + 1.75%), 2.74%, 04/03/25(c)			342			311,117
Ennis-Flint Road Infrastructure Investment, Term Loan, 06/13/23(c)(n)			606			436,557
Greenrock Finance, Inc., Term Loan, 06/28/24(n)			372			315,362

32 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security			Par (000)		Value
Chemicals (continued)
Invictus Co., Term Loan B, 03/28/25(n)	USD			353	$	272,716
Invictus Co., Term Loan B26, (LIBOR USD 3 Month + 6.75%), 8.53%, 03/30/26(c)				75		52,500
IPS Acquisition LLC, Term Loan B2, 11/07/24(c)(n)				347		270,327
LTI Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 4.49%, 09/06/25				141		103,194
Messer Industries GmbH, Term Loan, 03/02/26(n)				682		602,707
Momentive Performance Materials, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 4.24%, 05/15/24				496		398,302
OXEA Holding Vier GmbH, Term Loan, (LIBOR USD 1 Month + 3.50%), 4.94%, 10/14/24				961		783,446
						5,884,093
Commercial Services & Supplies — 0.8%
Advanced Disposal Services, Inc., Term Loan, (LIBOR USD 3 Month + 2.25%), 2.89%, 11/10/23				886		872,967
Allied Universal Holdco LLC Cov Lite, Term Loan B, 07/10/26(n)				1,441		1,325,424
Brand Energy & Infrastructure Services, Inc., Term Loan, 06/21/24(n)				907		721,315
Capri Acquisitions Bidco Ltd., Term Loan, 11/01/24(c)(n)				1,281		1,098,716
Cast & Crew Payroll LLC, 1st Lien Term Loan, 01/16/26(n)				570		444,746
Diamond (BC) BV, Term Loan, 09/06/24(n)				603		446,069
EnergySolutions LLC, Term Loan, (LIBOR USD 3 Month + 3.75%), 5.20%, 05/30/25(c)				215		185,189
GFL Environmental, Inc., Term Loan B, (LIBOR USD 1 Month + 3.00%), 3.99% - 4.00%, 05/30/25				331		319,641
Harland Clarke Holdings Corp., Term Loan B, (LIBOR USD 3 Month + 4.75%), 6.46%, 11/03/23				204		122,690
KAR Auction Services, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 3.19%, 09/19/26(c)				243		223,938
Prime Security Services Borrower LLC, 1st Lien Term Loan, 09/23/26(n)				462		412,684
Spring Education Group, Inc., Term Loan, 07/30/25(c)(n)				371		307,644
Tempo Acquisition LLC, Term Loan, 05/01/24(n)				1,685		1,499,372
US Ecology Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.50%), 3.49%, 11/02/26(c)				131		124,139
West Corp., Term Loan:
(LIBOR USD 3 Month + 3.50%), 4.95%, 10/10/24				25		18,013
10/10/24(n)				989		737,725
		��
						8,860,272
Construction & Engineering — 0.1%
Ply Gem, Inc., Term Loan B, (LIBOR USD 1 Month + 3.75%), 4.56%, 04/01/25				290		244,827
SRS Distribution, Inc., Term Loan B, 05/23/25(n)				554		467,083
						711,910
Construction Materials — 0.2%
Core & Main LP, Term Loan, 08/01/24(n)				1,504		1,319,902
Forterra Finance LLC, 1st Lien Term Loan, 10/25/23(n)				674		554,900
Foundation Building Materials, Inc., 1st Lien Term Loan B, 08/13/25(n)				494		426,089

Security		Par (000)		Value
Construction Materials (continued)
TAMKO Building Products LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.25%), 4.24% - 4.25%, 05/29/26(c)	USD		493	$	458,783
					2,759,674
Containers & Packaging — 0.5%
Berry Global, Inc., Term Loan, 10/01/22(n)			786		747,989
BWAY Holding Co., Term Loan, 04/03/24(n)			996		807,554
Charter NEX US, Inc., 1st Lien Term Loan, 05/16/24(n)			969		818,514
Flex Acquisition Co., Inc., Term Loan, 12/29/23(c)(n)			969		876,569
Pregis TopCo LLC, Term Loan, (LIBOR USD 1 Month + 4.00%), 4.99%, 07/31/26(c)			465		402,082
Reynolds Group Holdings, Inc., 1st Lien Term Loan, 02/05/23(n)			1,862		1,754,568
					5,407,276
Diversified Consumer Services — 0.6%
AlixPartners LLP, 1st Lien Term Loan, 04/04/24(n)			1,395		1,328,782
APX Group, Inc., Term Loan, (LIBOR USD 3 Month + 5.00%), 6.70%, 12/31/25			163		133,054
Bright Horizons Family Solutions LLC, 1st Lien Term Loan B, 11/07/23(n)			679		643,302
Maverick Purchaser Sub LLC, Term Loan, (LIBOR USD 1 Month + 4.00%), 4.99%, 01/29/27			233		214,360
Research Now, Inc., Term Loan, (LIBOR USD 3 Month + 5.50%), 7.26%, 12/07/24(c)			453		398,666
SIRVA Worldwide, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 5.50%), 6.49% - 7.28%, 08/04/25(c)			492		354,489
Sotheby’s, Inc., Term Loan B, (LIBOR USD 1 Month + 5.50%), 6.50%, 01/15/27			1,301		999,494
Spin Holdco, Inc., 1st Lien Term Loan B, 11/14/22(n)			1,940		1,722,072
TierPoint LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 4.75%, 05/06/24			542		474,321
Trugreen Ltd. Partnership, 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.75%), 4.75%, 03/19/26			512		463,495
					6,732,035
Diversified Financial Services — 0.8%
Advisor Group Holdings, Inc., Term Loan, 07/31/26(n)			967		711,697
Belron Finance LLC, Term Loan B, (LIBOR USD 3 Month + 2.50%), 4.27%, 10/30/26(c)			496		466,552
BW Gas & Convenience Holdings LLC, Term Loan, (LIBOR USD 1 Month + 6.25%), 7.18%, 11/13/26			495		403,301
Deerfield Dakota Holding LLC, Term Loan, 12/30/30(c)(n)			850		713,797
Genuine Financial Holdings LLC, Term Loan, 07/11/25(n)			883		720,024
Iron Mountain, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 1.75%), 2.74%, 01/02/26			366		343,659
Knowlton Development Corp., Inc., Term Loan B, 12/22/25(n)			601		509,145
SMG US Midco 2, Inc., Term Loan, (LIBOR USD 1 Month + 2.50%), 3.43%, 01/23/25			820		690,642
Starwood Property Mortgage LLC, Term Loan, (LIBOR USD 1 Month + 2.50%), 3.49%, 07/26/26(c)			180		156,683
Triton Bidco, Term Loan B, 09/23/26(n)			3,316		2,594,938

SCHEDULES OF INVESTMENTS 33

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)			Value
Diversified Financial Services (continued)
VICI Properties 1 LLC, Term Loan B, 12/22/24(n)	USD		1,021		$	935,073
VS Buyer LLC, Term Loan B, 02/28/27(c)(n)			702			670,410
Ziggo Finance Partnership, Term Loan, 04/30/28(n)			562			528,097
						9,444,018
Diversified Telecommunication Services — 0.6%
Altice Financing SA, Term Loan, 01/31/26(n)			354			321,267
Altice Financing SA, Term Loan B, (LIBOR USD 3 Month + 2.75%), 4.41%, 07/15/25			281			254,711
Altice France SA, Term Loan, 08/14/26(n)			806			763,932
Iridium Satellite LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 4.75%, 11/04/26			—	(o)		364
Level 3 Financing, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 2.74%, 03/01/27			633			589,093
Ligado Networks LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 0.00%), 11.20% (11.20% Cash or 0.00% PIK), 12/07/20(c)(i)			284			168,331
MTN Infrastructure TopCo, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 4.00%, 11/15/24			829			725,665
Zayo Group LLC, Term Loan, 03/09/27(n)			4,249			3,994,209
						6,817,572
Electric Utilities — 0.0%
Calpine Corp., Term Loan B, (LIBOR USD 1 Month + 2.00%), 2.99%, 01/15/25			106			98,444
Edgewater Generation LLC, Term Loan, 12/13/25(n)			112			89,913
						188,357
Electrical Equipment — 0.1%
GrafTech International Ltd., 1st Lien Term Loan B, 02/12/25(c)(n)			484			416,064
MH Sub I LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 3.75%), 4.82%, 09/13/24			553			465,176
						881,240
Energy Equipment & Services — 0.1%
McDermott International, Inc., Term Loan:
10/21/20(n)			278			251,076
10/21/21(c)(n)			9			8,454
(LIBOR USD 3 Month + 4.00%), 7.25%, 05/09/25			670			189,775
Mcdermott Technology, Term Loan, 10/23/20(n)			326			294,272
						743,577
Entertainment — 0.2%
Creative Artists Agency LLC, Term Loan C9, 11/27/26(n)			848			733,185
Kingpin Intermediate Holdings LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.50%), 4.50%, 07/03/24			590			398,753
PCI Gaming Authority, 1st Lien Term Loan, 05/29/26(n)			492			398,903
Renaissance Learning, Inc., Term Loan, 05/24/25(n)			36			30,048
William Morris Endeavor Entertainment LLC, Term Loan B, 05/18/25(n)			1,175			920,587
						2,481,476

Security		Par (000)		Value
Equity Real Estate Investment Trusts (REITs) — 0.1%
Claros Mortgage Trust, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 4.26%, 08/09/26(c)	USD		607	$	467,101
DTZ US BORROWER LLC, Term Loan, 08/21/25(n)			743		648,384
GEO Group Refinancing, Term Loan, (LIBOR USD 1 Month + 2.00%), 2.99%, 03/22/24			214		174,525
RHP Hotel Properties LP, 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.00%), 2.99%, 05/11/24			437		387,031
					1,677,041
Food & Staples Retailing — 0.2%
BCPE Empire Holdings, Inc., Delayed Draw Term Loan, 06/11/26(n)			57		49,809
BCPE Empire Holdings, Inc., Term Loan B, 06/11/26(n)			360		316,955
H-Food Holdings LLC, Term Loan, (LIBOR USD 1 Month + 3.69%), 4.68%, 05/23/25			115		95,607
H-Food Incremental, Term Loan, 05/23/25(n)			325		274,572
US Foods, Inc., Term Loan B:
(LIBOR USD 1 Month + 1.75%), 2.74%, 06/27/23			967		891,453
08/14/26(n)			318		288,405
					1,916,801
Food Products — 0.5%
1011778 BC ULC, Term Loan B4, (LIBOR USD 1 Month + 1.75%), 2.74%, 11/19/26			701		645,065
8th Avenue Food & Provisions, Inc., Term Loan, 10/01/25(n)			355		322,779
B&G Foods, Inc., Term Loan B, 10/10/26(n)			70		64,912
Chobani LLC, Term Loan, 10/10/23(n)			1,398		1,241,101
Froneri International Ltd., 2nd Lien Term Loan, (LIBOR USD 1 Month + 5.75%), 6.74%, 01/31/28(c)			99		89,100
Froneri International Ltd., Term Loan, 01/29/27(c)(n)			1,753		1,661,363
Hostess Brands LLC, Term Loan, (LIBOR USD 3 Month + 2.25%), 3.24% - 4.03%, 08/03/25			329		304,485
JBS USA LLC, Term Loan B, (LIBOR USD 3 Month + 2.00%), 3.07%, 05/01/26			121		113,008
Nomad Foods Ltd., Term Loan, (LIBOR USD 1 Month + 2.25%), 2.95%, 05/15/24			527		474,006
TMK Hawk Parent Corp., Term Loan, 08/28/24(n)			1,313		817,113
					5,732,932
Health Care Equipment & Supplies — 0.3%(n)
Immucor, Inc., 1st Lien Term Loan, 06/15/21			1,376		1,176,810
Sotera Health Holdings LLC, Term Loan, 11/20/26			2,554		2,211,906
					3,388,716
Health Care Providers & Services — 0.8%
AHP Health Partners, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 5.50%, 06/30/25			486		426,559
Azalea TopCo, Inc., Term Loan, 07/24/26(c)(n)			821		746,961
CHG Healthcare Services, Inc., Term Loan B, (LIBOR USD 3 Month + 3.00%), 4.07% - 4.45%, 06/07/23			679		599,945
Dentalcorp Perfect Smile ULC, Term Loan, 05/31/25(n)			427		330,172
Envision Healthcare Corp., Term Loan, 10/10/25(n)			856		432,367
Eyecare Partners LLC, Term Loan, (LIBOR USD 3 Month + 3.75%), 4.82%, 02/18/27			597		477,406

34 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Health Care Providers & Services (continued)
Gentiva Health Services, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 4.25%, 07/02/25(c)	USD		738	$	689,888
HCA, Inc., Term Loan B, (LIBOR USD 1 Month + 1.75%), 2.74%, 03/13/25			564		532,918
MPH Acquisition Holdings LLC, Term Loan, (LIBOR USD 3 Month + 2.75%), 4.20%, 06/07/23			506		445,950
nThrive, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 4.50%), 5.50%, 10/20/22			736		612,341
Option Care Health, Inc., 1st Lien Term Loan B, 08/06/26(n)			655		537,220
Ortho-Clinical Diagnostics, Inc., Term Loan B, 06/30/25(n)			1,802		1,524,580
Team Health Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 3.75%, 02/06/24			624		390,260
WCG Purchaser Corp., Term Loan, 01/08/27(c)(n)			604		567,705
Wink Holdco, Inc., Term Loan, (LIBOR USD 3 Month + 3.00%), 4.45%, 12/02/24			560		469,973
WP CityMD Bidco LLC, Term Loan, 08/13/26(n)			557		493,525
					9,277,770
Health Care Technology — 0.2%
Athenahealth, Inc., Term Loan B, 02/05/26(c)(n)			1,112		1,034,511
Change Healthcare Holdings LLC, Term Loan B, 03/01/24(c)(n)			1,209		1,136,217
Goodrx, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 3.74%, 10/10/25			658		610,809
					2,781,537
Hotels, Restaurants & Leisure — 0.7%
Aimbridge Acquisition, Inc., Term Loan B, 02/02/26(c)(n)			250		175,303
Aristocrat Leisure Ltd., Term Loan B, (LIBOR USD 3 Month + 1.75%), 3.58%, 10/19/24			247		220,032
Boyd Gaming Corp., Term Loan B, (LIBOR USD 3 Month + 2.25%), 2.93% - 4.65%, 09/15/23			424		364,540
Caesars Resort Collection LLC, Term Loan, 12/23/24(n)			1,410		1,133,401
CityCenter Holdings LLC, Term Loan B, 04/18/24(n)			1,074		931,889
Eldorado Resorts, Inc., Term Loan B, (LIBOR USD 3 Month + 2.25%), 3.25%, 04/17/24(c)			72		62,579
Four Seasons Holdings, Inc., Term Loan F, 11/30/23(n)			556		500,322
Golden Nugget, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 2.50%), 3.49% - 3.70%, 10/04/23			585		453,157
IRB Holding Corp., Term Loan, 02/05/25(n)			970		745,010
KFC Holding Co., Term Loan B, (LIBOR USD 1 Month + 1.75%), 2.36%, 04/03/25			410		386,683
Motorcity Casino Hotel, 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.25%), 3.24%, 08/06/21			484		428,584
Playa Resorts Holding BV, 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.75%), 3.75%, 04/29/24			451		305,597
Playtika Holding Corp., Term Loan B, 12/10/24(n)			439		407,933
Scientific Games International, Inc., Term Loan B, 08/14/24(n)			469		377,072
Stars Group Holdings BV, Term Loan, 07/10/25(n)			599		569,183
Station Casinos LLC, Term Loan B, (LIBOR USD 1 Month + 2.25%), 3.24%, 02/08/27			518		438,850
Whatabrands LLC, Term Loan B, 07/31/26(n)			561		460,423

Security		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
Wyndham Hotels & Resorts, Inc., Term Loan B, 05/30/25(n)	USD		149	$	130,243
					8,090,801
Household Durables — 0.0%
Serta Simmons Bedding LLC, Term Loan:
(LIBOR USD 1 Month + 3.50%), 4.50%, 11/08/23			177		69,409
(LIBOR USD 1 Month + 8.00%), 9.00%, 11/08/24			17		3,785
					73,194
Independent Power and Renewable Electricity Producers — 0.1%
Calpine Corp., Term Loan:
(LIBOR USD 1 Month + 2.25%), 3.24%, 04/05/26			613		580,640
08/12/26(c)(n)			286		269,234
					849,874
Industrial Conglomerates — 0.4%
AVSC Holding Corp., 1st Lien Term Loan, (LIBOR USD 3 Month + 3.25%), 4.70% - 4.95%, 03/03/25			1,785		1,115,416
Filtration Group Corp., Term Loan B, (LIBOR USD 1 Month + 3.00%), 3.99%, 03/31/25			819		707,684
RBS Global, Inc., Term Loan B, (LIBOR USD 1 Month + 1.75%), 2.68%, 08/21/24			255		231,860
Vertiv Group Corp., Term Loan, 03/02/27(c)(n)			2,504		2,153,440
					4,208,400
Insurance — 0.7%
Alliant Holdings Intermediate LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 3.86%, 05/09/25			165		149,515
Alliant Holdings Intermediate LLC, Term Loan, 05/09/25(n)			1,536		1,391,188
AmWINS Group, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 3.75% - 3.77%, 01/25/24			807		743,591
AssuredPartners, Inc., Term Loan, 02/12/27(n)			602		521,807
Asurion LLC, 1st Lien Term Loan B6, (LIBOR USD 1 Month + 3.00%), 3.99%, 11/03/23			454		431,755
Asurion LLC, 2nd Lien Term Loan B2, (LIBOR USD 1 Month + 6.50%), 7.49%, 08/04/25			554		504,832
Hub International Ltd., Term Loan B, 04/25/25(n)			239		224,221
HUB International Ltd., Term Loan B, (LIBOR USD 6 Month + 2.75%), 4.39% - 4.55%, 04/25/25			915		850,134
Sedgwick, 1st Lien Term Loan, 12/31/25(n)			964		847,345
Sedgwick, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 4.00%), 4.99%, 09/03/26			667		598,095
USI, Inc., 1st Lien Term Loan B, 05/16/24(n)			1,571		1,429,311
USI, Inc., Term Loan B, (LIBOR USD 1 Month + 4.00%), 4.99%, 12/02/26			88		78,416
					7,770,210
IT Services — 1.7%
Altran Technologies SA, Term Loan, (LIBOR USD 1 Month + 2.50%), 3.27%, 03/20/25			98		89,421
Ancestry.com Operations, Inc., Term Loan B(c):
10/19/23(n)			661		568,047
(LIBOR USD 1 Month + 4.25%), 5.25%, 08/27/26			334		263,985
Applied Systems, Inc., Term Loan:
09/19/24(n)			795		730,271
(LIBOR USD 3 Month + 7.00%), 8.45%, 09/19/25			211		189,836
Boxer Parent Co., Inc., Term Loan B, 10/02/25(n)			617		509,005

SCHEDULES OF INVESTMENTS 35

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
IT Services (continued)
Camelot U.S. Acquisition 1 Co., Term Loan B, 10/30/26(c)(n)	USD		1,412	$	1,327,158
CCC Information Services, Inc., Term Loan, 04/29/24(n)			1,000		907,296
Epicor Software Corp., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 4.24%, 06/01/22			680		618,423
Evertec, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 4.49%, 11/27/24			202		171,260
Greeneden US Holdings I LLC, Term Loan B, 12/01/23(c)(n)			1,263		1,174,630
IG Investments Holdings LLC, Term Loan, 05/23/25(n)			1,412		1,114,507
Mitchell International, Inc., 1st Lien Term Loan, 11/29/24(n)			825		682,337
Mitchell International, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 8.24%, 12/01/25			197		147,500
Peak 10 Holding Corp., 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 8.71%, 08/01/25			168		63,559
Peak 10 Holding Corp., Term Loan, (LIBOR USD 3 Month + 3.50%), 4.95%, 08/01/24			173		121,289
Presidio Holdings, Inc., Term Loan B, (LIBOR USD 3 Month + 3.50%), 5.28%, 01/22/27(c)			252		234,154
Pug LLC, Term Loan, 02/12/27(c)(n)			1,550		1,317,144
Rackspace Hosting, Inc., Term Loan, (LIBOR USD 3 Month + 3.00%), 4.76%, 11/03/23			230		199,119
Sabre GLBL, Inc., Term Loan, 02/22/24(n)			412		343,031
Solera LLC, Term Loan B1, 03/03/23(n)			1,006		938,010
Sophia LP, 1st Lien Term Loan B, 09/30/22(n)			1,097		1,039,179
SS&C Technologies Holdings, Inc., 1st Lien Term Loan B5, 04/16/25(n)			740		690,840
SS&C Technologies Holdings, Inc., Term Loan B, 04/16/25(n)			343		319,501
Trans Union LLC, Term Loan B, (LIBOR USD 1 Month + 1.75%), 2.74%, 11/16/26			1,471		1,403,661
Verscend Holding Corp., Term Loan B, 08/27/25(c)(n)			1,315		1,235,831
Vertafore, Inc., Term Loan B, 07/02/25(n)			1,464		1,282,753
WEX, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 3.24%, 05/15/26			1,373		1,183,269
					18,865,016
Life Sciences Tools & Services — 0.2%
Albany Molecular Research, Inc., Term Loan: 08/30/24(n)			359		309,241
(LIBOR USD 1 Month + 7.00%), 8.00%, 08/30/25			60		42,000
Avantor Funding, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 3.25%, 11/21/24			562		528,470
eResearchTechnology, Inc., Term Loan, (LIBOR USD 3 Month + 4.50%), 5.95%, 02/04/27			1,093		950,486
IQVIA, Inc., Term Loan B, (LIBOR USD 3 Month + 1.75%), 3.69%, 03/07/24			61		55,964
					1,886,161
Machinery — 0.3%
Clark Equipment Co., Term Loan, (LIBOR USD 3 Month + 1.75%), 3.20%, 05/18/24			159		141,762
Gates Global LLC, Term Loan B, 04/01/24(n)			1,200		1,034,655
Ingersoll-Rand Services Co., Term Loan, 03/01/27(n)			699		653,609
Terex Corp., Term Loan, (LIBOR USD 1 Month + 2.75%), 3.74%, 01/31/24(c)			70		63,964

Security		Par (000)		Value
Machinery (continued)
Titan Acquisition Ltd., Term Loan, 03/28/25(n)	USD		2,165	$	1,764,716
					3,658,706
Media — 0.8%
Ascend Learning LLC, Term Loan B, 07/12/24(n)			675		598,497
Cable One, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 2.74%, 05/01/24(c)			135		131,223
Charter Communications Operating, Term Loan B1, (LIBOR USD 1 Month + 1.75%), 2.74%, 04/30/25			415		396,866
Clear Channel Outdoor Holdings, Inc., Term Loan, 08/21/26(n)			1,904		1,599,544
CSC Holdings LLC, Term Loan B, (LIBOR USD 1 Month + 2.50%), 3.11%, 04/15/27			888		846,518
Diamond Sports Group LLC, Term Loan, 08/24/26(c)(n)			442		340,508
Gray Television, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 3.77%, 02/07/24			213		198,702
Intelsat Jackson Holdings SA, Term Loan, (LIBOR USD 3 Month + 3.75%), 5.68%, 11/27/23			145		132,131
LCPR Loan Financing LLC, Term Loan, (LIBOR USD 1 Month + 5.00%), 5.70%, 10/15/26			529		484,696
Learfield Communications LLC, Term Loan, (LIBOR USD 1 Month + 3.25%), 4.25%, 12/01/23			2,014		1,316,035
Lions Gate Capital Holdings LLC, Term Loan, (LIBOR USD 1 Month + 2.25%), 3.24%, 03/24/25			525		469,577
Midcontinent Communications, Term Loan, (LIBOR USD 1 Month + 1.75%), 2.74%, 08/15/26			217		200,943
Nexstar Broadcasting, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 4.33%, 09/18/26			457		423,878
Radiate Holdco LLC, Term Loan, 02/01/24(n)			692		634,364
Terrier Media Buyer, Inc., Term Loan, (LIBOR USD 3 Month + 4.25%), 5.70%, 12/17/26			817		720,928
Trader Corp., Term Loan, 09/28/23(c)(n)			1,225		1,029,317
					9,523,727
Metals & Mining — 0.1%
Ball Metalpack Finco LLC, Term Loan, (LIBOR USD 3 Month + 4.50%), 6.11%, 07/31/25			715		536,538
Equinox Holdings, Inc., Term Loan B, 03/08/24(n)			650		471,484
					1,008,022
Multiline Retail — 0.0%
Neiman Marcus Group Ltd. LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 6.00%), 7.50%, 10/25/23			506		198,987
Multi-Utilities — 0.1%
Exgen Renewables IV LLC, Term Loan, 11/28/24(n)			613		548,520
USIC Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 4.25%, 12/08/23			101		85,255
					633,775
Oil, Gas & Consumable Fuels — 0.1%
California Resources Corp., Term Loan, (LIBOR USD 3 Month + 10.38%), 11.99%, 12/31/21			860		40,549
CNX Resources Corp., Term Loan, (LIBOR USD 1 Month + 4.50%), 5.49%, 11/28/22			193		125,476
EURO Garages Ltd., Term Loan B, (LIBOR USD 6 Month + 4.00%), 5.07%, 02/07/25			801		580,878

36 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
EURO Garages Ltd., Term Loan B1, (LIBOR USD 6 Month + 4.00%), 5.07%, 02/07/25	USD		113	$	81,707
					828,610
Personal Products — 0.1%
Sunshine Luxembourg VII SARL, Term Loan, 10/01/26(n)			821		734,220
Pharmaceuticals — 0.5%
Amneal Pharmaceuticals LLC, Term Loan B18, 03/21/25(n)			766		650,867
Bausch Health Cos., Inc., Term Loan, 06/02/25(n)			2,227		2,106,963
Catalent, Term Loan B, 05/18/26(c)(n)			716		690,894
Elanco Animal Health, Inc., Term Loan, 02/04/27(n)			147		138,985
Grifols Worldwide Operations Ltd., Term Loan B, (LIBOR USD 3 Month + 2.00%), 2.68%, 11/15/27			275		259,482
Jaguar Holding Co. I, Term Loan, 08/18/22(n)			2,108		2,006,214
Mallinckrodt International Finance SA, 1st Lien Term Loan B, (LIBOR USD 3 Month + 2.75%), 4.20%, 09/24/24			407		272,545
					6,125,950
Professional Services — 0.1%
Dun & Bradstreet Corp. (The), 1st Lien Term Loan B, 02/06/26(c)(n)			1,504		1,348,207
STG-Fairway Holdings LLC, Term Loan B, (LIBOR USD 3 Month + 3.50%), 4.57%, 01/31/27			270		227,207
					1,575,414
Real Estate Management & Development — 0.1%
ESH Hospitality, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 2.99%, 09/18/26			300		264,710
Forest City Enterprises LP, Term Loan, (LIBOR USD 1 Month + 3.50%), 4.49%, 12/08/25(c)			689		585,933
Realogy Group LLC, Term Loan, (LIBOR USD 1 Month + 2.25%), 3.83%, 02/08/25			80		67,483
					918,126
Road & Rail — 0.2%(n)
Lineage Logistics LLC, Term Loan, 02/27/25			1,145		1,063,580
Uber Technologies, Inc., Term Loan, 07/13/23			1,038		963,519
					2,027,099
Semiconductors & Semiconductor Equipment — 0.0%
Microchip Technology, Inc., Term Loan, (LIBOR USD 1 Month + 2.00%), 2.99%, 05/29/25(c)			37		35,366
ON Semiconductor Corp., Term Loan B, (LIBOR USD 1 Month + 2.00%), 2.99%, 09/19/26			227		212,554
					247,920
Software — 1.7%
Castle US Holding Corp., Term Loan, 01/29/27(c)(n)			940		745,542
CERENCE, Inc., Term Loan, (LIBOR USD 1 Month + 6.00%), 7.52%, 10/01/24			329		292,072
DTI Holdco, Inc., Term Loan, (LIBOR USD 3 Month + 4.75%), 6.53%, 09/29/23			532		373,818
Ellie Mae, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 3.75%), 5.20%, 04/17/26			1,712		1,491,838
Infor US, Inc., Term Loan, 02/01/22(n)			2,902		2,781,193
Informatica LLC, Term Loan:
7.13%, 02/25/25(c)(p)			556		489,280
02/25/27(n)			2,211		1,905,406

Security		Par (000)		Value
Software (continued)
Kronos, Inc., 1st Lien Term Loan B, 11/01/23(n)	USD		2,460	$	2,233,221
Kronos, Inc., 2nd Lien Term Loan B, 11/01/24(n)			449		411,236
McAfee LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 4.69%, 09/30/24			1,117		1,042,957
PowerSchool Group LLC, 1st Lien Term Loan, 07/31/25(n)			1,093		934,504
Refinitiv US Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 4.24%, 10/01/25			2,167		2,071,068
RP Crown Parent LLC, 1st Lien Term Loan, 10/12/23(c)(n)			1,317		1,251,364
SolarWinds Holdings, Inc., Term Loan B, 02/05/24(n)			798		739,106
SS&C Technologies Holdings, Inc., Term Loan, 04/16/25(n)			244		227,940
TIBCO Software, Inc., 1st Lien Term Loan, 06/30/26(c)(n)			1,469		1,380,812
TIBCO Software, Inc., 2nd Lien Term Loan, 03/03/28(c)(n)			860		799,800
Ultimate Software Group, Inc. (The), 1st Lien Term Loan, (LIBOR USD 1 Month + 3.75%), 4.74%, 05/04/26			739		686,300
					19,857,457
Specialty Retail — 0.3%
Belron Finance US LLC, Term Loan B, (LIBOR USD 3 Month + 2.25%), 3.99%, 11/07/24(c)			556		522,394
Belron Finance US LLC, Term Loan B1, (LIBOR USD 3 Month + 2.25%), 3.96%, 11/06/25(c)			92		86,327
IAA, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 3.25%, 06/28/26			208		197,548
MED ParentCo LP, Delayed Draw Term Loan, (LIBOR USD 1 Month + 4.25%), 3.86% - 5.24%, 08/31/26			86		70,800
MED ParentCo LP, Term Loan, (LIBOR USD 1 Month + 4.25%), 5.24%, 07/31/26			488		403,522
Midas Intermediate Holdco II LLC, Term Loan B, 08/18/21(n)			559		433,671
PetSmart, Inc., Term Loan, 03/11/22(n)			1,427		1,364,413
					3,078,675
Technology Hardware, Storage & Peripherals — 0.1%
Electronics for Imaging, Inc., Term Loan, 07/23/26(n)			609		495,398
Western Digital Corp., 1st Lien Term Loan B, (LIBOR USD 1 Month + 1.75%), 3.35%, 04/29/23			808		775,823
					1,271,221
Trading Companies & Distributors — 0.0%
HD Supply, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 2.74%, 10/17/23			546		505,976
Wireless Telecommunication Services — 0.1%
Digicel International Finance Ltd., Term Loan, (LIBOR USD 3 Month + 3.25%), 4.87%, 05/27/24			581		449,658
Hargray Communications Group, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 4.00%, 05/16/24			413		356,136
SBA Senior Finance II LLC, 2nd Lien Term Loan B, 04/06/25(n)			692		652,447
					1,458,241
Total Floating Rate Loan Interests — 16.2% (Cost: $211,647,441)					184,954,964

SCHEDULES OF INVESTMENTS 37

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Foreign Agency Obligations — 1.3%
Chile — 0.2%
Corp. Nacional del Cobre de Chile, 3.63%, 08/01/27	USD		500	$	495,376
Empresa de Transporte de Pasajeros Metro SA, 4.75%, 02/04/24			520		522,763
Empresa Nacional del Petroleo:
3.75%, 08/05/26			600		553,016
5.25%, 11/06/29(b)			220		216,920
					1,788,075
China — 0.1%
Chengdu Xingcheng Investment Group Co. Ltd., 2.50%, 03/20/21	EUR		100		109,015
China Cinda Asset Management Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.29%), 4.45%(a)(k)	USD		200		196,875
China Minmetals Corp., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.72%), 3.75%(a)(k)			300		289,406
Guangxi Financial Investment Group Co. Ltd., 5.75%, 01/23/21			200		172,170
Zhengzhou Real Estate Group Co. Ltd., 3.95%, 10/09/22			460		448,008
					1,215,474
France — 0.1%
Aeroports de Paris, 2.13%, 10/02/26	EUR		300		331,062
Electricite de France SA(a)(k):
(EUR Swap Annual 6 Year + 3.44%), 4.00%			300		321,430
(GBP Swap 13 Year + 3.96%), 6.00%	GBP		200		239,427
(EUR Swap Annual 5 Year + 3.20%), 3.00%	EUR		200		205,137
					1,097,056
India — 0.3%
Indian Oil Corp. Ltd., 4.75%, 01/16/24	USD		1,200		1,140,375
Oil India Ltd., 5.13%, 02/04/29			640		568,600
Power Finance Corp. Ltd.:
3.75%, 06/18/24			315		293,048
3.75%, 12/06/27			303		262,190
4.50%, 06/18/29			365		323,938
3.95%, 04/23/30			800		677,000
Rural Electrification Corp. Ltd., 4.63%, 03/22/28			497		446,989
					3,712,140
Indonesia — 0.1%
Pertamina Persero PT, 4.30%, 05/20/23			1,250		1,244,531
Perusahaan Listrik Negara PT, 5.50%, 11/22/21			270		271,266
					1,515,797
Israel — 0.1%
Israel Electric Corp. Ltd., Series 6, 5.00%, 11/12/24(b)			660		688,256
Italy — 0.0%
Banca Monte dei Paschi di Siena SpA, 2.63%, 04/28/25	EUR		225		205,960
Mexico — 0.0%
Petroleos Mexicanos:
6.50%, 03/13/27	USD		461		338,907
5.35%, 02/12/28			140		97,300
					436,207
Morocco — 0.1%
OCP SA, 4.50%, 10/22/25			600		566,812

Security		Par (000)		Value
Pakistan — 0.0%
Third Pakistan International Sukuk Co. Ltd. (The), 5.63%, 12/05/22	USD		200	$	186,700
Peru — 0.1%
Corp. Financiera de Desarrollo SA, 4.75%, 07/15/25			400		384,625
Petroleos del Peru SA, 5.63%, 06/19/47			500		450,312
					834,937
South Africa — 0.1%
Transnet SOC Ltd., 4.00%, 07/26/22			660		629,063
Sri Lanka — 0.1%
SriLankan Airlines Ltd., 7.00%, 06/25/24			1,700		1,535,440
Total Foreign Agency Obligations — 1.3% (Cost: $15,628,225)					14,411,917
Foreign Government Obligations — 0.4%
Indonesia — 0.1%
Pertamina Persero PT, 4.18%, 01/21/50			800		684,284
Maldives — 0.1%
Republic of Maldives, 7.00%, 06/07/22			900		692,235
Mongolia — 0.0%
State of Mongolia, 8.75%, 03/09/24			256		241,413
Pakistan — 0.0%
Islamic Republic of Pakistan, 6.88%, 12/05/27			200		165,245
Qatar — 0.0%
State of Qatar, 3.25%, 06/02/26			500		511,250
Saudi Arabia — 0.0%
Saudi Arabian Oil Co., 3.50%, 04/16/29			334		328,155
Sri Lanka — 0.2%
Democratic Socialist Republic of Sri Lanka:
6.85%, 03/14/24			200		118,396
6.35%, 06/28/24			200		117,713
6.83%, 07/18/26			1,000		584,560
7.85%, 03/14/29			200		108,212
7.55%, 03/28/30			2,600		1,433,250
					2,362,131
Total Foreign Government Obligations — 0.4% (Cost: $7,259,521)					4,984,713
		Shares
Investment Companies — 3.4%
Invesco Senior Loan ETF			100,131		2,048,680
iShares0-5 Year High Yield Corporate Bond ETF*			530,200		21,669,274
iShares Floating Rate Bond ETF*			308,079		15,015,771
Total Investment Companies — 3.4% (Cost: $42,575,230)					38,733,725
		Par (000)
Non-Agency Mortgage-Backed Securities — 2.5%
Collateralized Mortgage Obligations — 0.5%
Alternative Loan Trust:
Series 2006-OA11, Class A1B, 1.14%, 09/25/46(d)			2,783		2,315,213
Series2007-3T1, Class 1A1, 6.00%, 04/25/37			2,288		1,437,060

38 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security			Par (000)		Value
Collateralized Mortgage Obligations (continued)
LSTAR Securities Investment Trust, Series2019-1, Class A1, 3.28%, 03/01/24(b)(d)		USD		997	$	981,788
MCM Trust, Series 2018-NPL2, Class A, 4.00%, 10/25/28(b)(c)(e)				1,370		1,382,429
						6,116,490
Commercial Mortgage-Backed Securities — 1.8%
BAMLL Commercial Mortgage Securities Trust,Series 2016-ISQ, Class E, 3.61%, 08/14/34(b)(d)				861		585,353
BX Commercial Mortgage Trust, Series 2019- XL, Class G, 3.00%, 10/15/36(b)(d)				2,866		2,407,051
Citigroup Commercial Mortgage Trust, Series 2016-GC37, Class D, 2.79%, 04/10/49(b)				1,000		703,042
Commercial Mortgage Trust, Series 2016-667M, Class D, 3.18%, 10/10/36(b)(d)				1,000		839,207
CSAIL Commercial Mortgage Trust:
Series2015-C2, Class B, 4.19%, 06/15/57(d)				2,000		1,926,490
Series2019-C17, Class C, 3.93%, 09/15/52				2,858		2,072,738
DBJPM Mortgage Trust,Series 2016-C3, Class D, 3.49%, 08/10/49(b)(d)				530		381,141
DBUBS Mortgage Trust, Series 2017-BRBK, Class D, 3.53%, 10/10/34(b)(d)				990		809,989
GS Mortgage Securities Trust, Series 2015-GC32, Class D, 3.35%, 07/10/48				440		329,959
Hudson Yards Mortgage Trust, Series 2019-55HY, Class F, 2.94%, 12/10/41(b)(d)				1,886		1,565,732
JPMCC Commercial Mortgage Securities Trust,Series 2017-JP5, Class D, 4.63%, 03/15/50(b)(d)				990		793,351
Morgan Stanley Bank of America Merrill Lynch Trust:
Series2015-C23, Class D, 4.15%, 07/15/50(b)(d)				1,000		786,766
Series2015-C25, Class D, 3.07%, 10/15/48.				650		474,921
USDC, Series 2018-USDC, Class E, 4.49%, 05/13/38(b)(d)				2,000		1,656,258
Velocity Commercial Capital Loan Trust(b)(d):
Series2019-3, Class M2, 3.28%, 10/25/49				3,370		2,584,898
Series2019-3, Class M3, 3.38%, 10/25/49				978		736,756
Wells Fargo Commercial Mortgage Trust(d):
Series2015-C30, Class C, 4.50%, 09/15/58				1,000		853,941
Series 2016-NXS5, Class D, 4.97%, 01/15/59				750		602,621
						20,110,214
Interest Only Commercial Mortgage-Backed Securities — 0.2%(d)
Benchmark Mortgage Trust,Series 2019-B13, Class XA, 1.27%, 08/15/57				25,672		1,933,734
JPMorgan Chase Commercial Mortgage Securities Trust, Series2016-JP3, Class XC, 0.75%, 08/15/49(b)				8,700		346,450
						2,280,184
TotalNon-Agency Mortgage-Backed Securities — 2.5% (Cost: $33,569,849)						28,506,888
	Beneficial Interest (000)
Other Interests — 0.0%(q)
Capital Markets — 0.0%
Millennium Corp. Claim(c)(g)				811		—
Total Other Interests — 0.0%						—

Security			Par (000)		Value
Preferred Securities — 0.9%
Capital Trusts — 0.9%
Banks — 0.8%(j)(k)
Bank of America Corp.:
Series X, 6.25%		USD		370	$	375,550
Series Z, 6.50%				30		31,650
Series AA, 6.10%				240		242,400
Series DD, 6.30%				60		63,000
Citigroup, Inc., Series V, 4.70%				6,840		5,859,144
JPMorgan Chase & Co.:
Series FF, 5.00%				1,760		1,653,063
Series HH, 4.60%				406		355,331
Lloyds Banking Group plc, 6.41%(b)				100		100,000
Wells Fargo & Co., Series U, 5.87%				210		213,150
						8,893,288
Capital Markets — 0.1%
Morgan Stanley, Series J, 5.55%(j)(k)				1,250		1,087,500
Total Capital Trusts — 0.9% (Cost: $11,461,672)						9,980,788
	Shares
Preferred Stocks — 0.0%
Banks — 0.0%
CF-B L2 (D), LLC (Acquired4/08/15-12/15/15, cost $53,170)(h)(k)				56,090		22,677
Total Preferred Stocks — 0.0% (Cost: $54,874)						22,677
Total Preferred Securities — 0.9% (Cost: $11,516,546)						10,003,465
	Par (000)
U.S. Government Sponsored Agency Securities — 0.0%
Collateralized Mortgage Obligations — 0.0%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Variable Rate Notes, Series 2018-DNA1, Class B1, (LIBOR USD 1 Month + 3.15%), 4.10%, 07/25/30(a)				1,500		558,322
Total U.S. Government Sponsored Agency Securities — 0.0% (Cost: $1,500,000)						558,322
Total Long-Term Investments — 88.3% (Cost: $1,125,682,237)						1,006,082,727
	Shares
Short-Term Securities — 8.1%(r)
BlackRock Liquidity Funds,T-Fund, Institutional Class, 0.21%*				91,028,618		91,028,618
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 0.27%				1,549,855		1,549,855
Total Short-Term Securities — 8.1% (Cost: $92,578,473)						92,578,473
Total Options Purchased — 0.0% (Cost: $1,686,714)						530,091

SCHEDULES OF INVESTMENTS 39

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security	Value
Total Investments Before Options Written — 96.4% (Cost: $1,219,947,424)	$	1,099,191,291
Total Options Written — (0.0)% (Premium Received — $93,440)		(349,170	)
Total Investments Net of Options Written — 96.4% (Cost: $1,219,853,984)		1,098,842,121
Other Assets Less Liabilities — 3.6%		40,843,149
Net Assets — 100.0%	$	1,139,685,270

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

^(g)  Non-income producing security.

^(h)  Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $22,677, representing less than 0.05% of its net assets as of period end, and an original cost of $53,170.

⁽ⁱ⁾  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.

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

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

^(l)  Convertible security.

^(m)  Zero-coupon bond.

⁽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)  Fixed rate.

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

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

* Investments in issuers considered to be an affiliate/affiliates of the Fund during the six months ended March 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Shares Held at 09/30/19		Shares Purchased		Shares Sold			Shares Held at 03/31/20		Value at 03/31/20		Income		Net Realized Gain (Loss) (a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class(b)		124,707,965		—		(33,679,347	)		91,028,618	$	91,028,618	$	979,087	$	303		$	—
iShares0-5 Year High Yield Corporate Bond ETF		530,200		—		—			530,200		21,669,274		634,087		—			(2,979,724	)
iShares Floating Rate Bond ETF		491,932		—		(183,853	)		308,079		15,015,771		290,926		(1,106,413	)		(710,916	)
iShares J.P. Morgan USD Emerging Markets Bond ETF(c)		32,813		—		(32,813	)		—		—		81,430		(484,137	)		(225,261	)
										$	127,713,663	$	1,985,530	$	(1,590,247	)	$	(3,915,901	)

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

^(b)  Represents net shares purchased (sold).

^(c)  As of period end, the entity is no longer held by the Fund.

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

40 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
U.S. Treasury 10 Year Note		1,076		06/19/20	$	149,228	$	1,717,810
U.S. Treasury Long Bond		38		06/19/20		6,804		572,407
U.S. Treasury 2 Year Note		40		06/30/20		8,815		125,799
U.S. Treasury 5 Year Note		390		06/30/20		48,890		1,081,984
								3,498,000
Short Contracts
Euro-Bobl		21		06/08/20		3,132		(4,696	)
Euro-Bund		3		06/08/20		571		(4,205	)
Euro-Schatz		1		06/08/20		124		223
U.S. Treasury 10 Year Ultra Note		2		06/19/20		312		(17,239	)
U.S. Treasury Ultra Bond		58		06/19/20		12,869		256
								(25,661	)
							$	3,472,339

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		��	Unrealized Appreciation (Depreciation)
CAD	55,000	USD	38,810	JPMorgan Chase Bank NA		04/03/20		$	272
USD	41,207	CAD	55,000	BNP Paribas SA		04/03/20			2,124
EUR	2,010,000	USD	2,178,686	Bank of America NA		04/17/20			39,382
EUR	230,000	USD	245,256	Citibank NA		04/17/20			8,553
GBP	40,000	USD	48,271	Citibank NA		04/17/20			1,428
USD	39,901,238	EUR	35,110,000	Bank of America NA		04/17/20			1,156,774
USD	510,544	EUR	460,000	JPMorgan Chase Bank NA		04/17/20			2,927
USD	10,525,591	EUR	9,260,000	Morgan Stanley & Co. International plc		04/17/20			307,029
USD	4,209,426	GBP	3,250,000	Bank of America NA		04/17/20			171,384
USD	699,449	GBP	540,000	JPMorgan Chase Bank NA		04/17/20			28,513
USD	356,847	EUR	323,000	JPMorgan Chase Bank NA		05/05/20			131
HKD	3,449,088	USD	444,430	Goldman Sachs International		06/16/20			327
USD	106,222	EUR	94,680	Bank of America NA		06/16/20			1,496
USD	577,795	JPY	61,790,810	JPMorgan Chase Bank NA		06/16/20			1,265
USD	577,635	JPY	61,790,810	UBS AG		06/16/20			1,105
									1,722,710
EUR	323,000	USD	356,358	JPMorgan Chase Bank NA		04/03/20			(112	)
USD	355,012	EUR	323,000	Bank of America NA		04/03/20			(1,235	)
EUR	200,000	USD	223,752	BNP Paribas SA		04/17/20			(3,048	)
GBP	20,000	USD	25,149	BNP Paribas SA		04/17/20			(300	)
USD	522,828	EUR	480,000	Bank of America NA		04/17/20			(6,860	)
USD	275,717	EUR	250,000	Deutsche Bank AG		04/17/20			(162	)
USD	594,236	EUR	540,000	JPMorgan Chase Bank NA		04/17/20			(1,663	)
USD	755,077	EUR	700,000	Morgan Stanley & Co. International plc		04/17/20			(17,385	)
USD	97,095	GBP	80,000	JPMorgan Chase Bank NA		04/17/20			(2,303	)
USD	38,825	CAD	55,000	JPMorgan Chase Bank NA		05/05/20			(272	)
USD	2,493,379	HKD	19,375,671	Bank of America NA		06/16/20			(5,096	)
									(38,436	)
Net Unrealized Appreciation								$	1,684,274

SCHEDULES OF INVESTMENTS 41

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund

Exchange-Traded Options Purchased

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
S&P 500 Index		9		09/18/20	USD	3,400.00	USD	2,326	$	3,555
S&P 500 Index		5		12/18/20	USD	3,500.00	USD	1,292		3,725
										7,280
Put
S&P 500 Index		9		04/17/20	USD	2,875.00	USD	2,326		279,135
									$	286,415

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

Call

Bought Protection on 5-Year Credit Default Swap

5.00

%

Quarterly

CDX.NA.HY.33.V2

Quarterly

Morgan Stanley & Co. International plc

04/15/20

USD 107.50

USD 143,000

$

1,356

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

OTC Interest Rate 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(a)

1.10%

Semi-Annual

3 month LIBOR

Quarterly

Barclays Bank plc

05/15/20

1.10

%

USD 46,500

$

101,890

10-Year Interest Rate Swap(a)

2.50%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

01/15/21

2.50

USD 57,250

28,656

30-Year Interest Rate Swap(a)

2.50%

Semi-Annual

3 month LIBOR

Quarterly

JPMorgan Chase Bank NA

08/13/21

2.50

USD 18,000

111,774

$

242,320

^(a)  Forward settling swaption.

Exchange-Traded Options Written

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
S&P 500 Index		9		09/18/20	USD	3,500.00	USD	2,326	$	(2,160	)
S&P 500 Index		5		12/18/20	USD	3,600.00	USD	1,292		(2,400	)
										(4,560	)
Put
S&P 500 Index		9		04/17/20	USD	2,950.00	USD	2,326		(344,610	)
									$	(349,170	)

42 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund

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.V2	1.00	%	Quarterly	12/20/22	NR	EUR	100	$	657		$	1,231		$	(574	)
ITRAXX.EUR. CROSSOVER.32.V1	5.00		Quarterly	12/20/24	CCC+	EUR	840		(17,441	)		33,464			(50,905	)
CDX.NA.HY.34.V1	5.00		Quarterly	06/20/25	B-	USD	36,350		(2,273,087	)		(2,008,431	)		(264,656	)
								$	(2,289,871	)	$	(1,973,736	)	$	(316,135	)

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

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

OTC Credit Default 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)
Altice Finco SA		5.00	%		Quarterly	Credit Suisse International		12/20/24	EUR	140	$	(1,250	)	$	(18,083	)	$	16,833
Altice Finco SA		5.00			Quarterly	Credit Suisse International		12/20/24	EUR	110		(982	)		(11,705	)		10,723
											$	(2,232	)	$	(29,788	)	$	27,556

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	Citibank NA	06/20/23	B	EUR	16		$	(2,844)	$	(1,563)	$	(1,281)
Casino Guichard Perrachon SA	1.00		Quarterly	Citibank NA	06/20/23	NR	EUR	33			(5,879)		(3,112)		(2,767)
Casino Guichard Perrachon SA	1.00		Quarterly	JPMorgan Chase Bank NA	06/20/23	NR	EUR	33			(5,885)		(3,115)		(2,770)
Casino Guichard Perrachon SA	1.00		Quarterly	JPMorgan Chase Bank NA	06/20/23	NR	EUR	20			(3,531)		(1,749)		(1,782)
Casino Guichard Perrachon SA	1.00		Quarterly	JPMorgan Chase Bank NA	06/20/23	NR	EUR	13			(2,354)		(1,166)		(1,188)
Casino Guichard Perrachon SA	1.00		Quarterly	Goldman Sachs International	12/20/23	NR	EUR	160			(32,469)		(19,106)		(13,363)
CenturyLink, Inc.	1.00		Quarterly	Barclays Bank plc	12/20/23	NR	USD	30			(1,911)		(1,713)		(198)
Chesapeake Energy Corp	5.00		Quarterly	Barclays Bank plc	12/20/23	CCC-	USD	54			(47,250)		377		(47,627)
Chesapeake Energy Corp	5.00		Quarterly	Barclays Bank plc	12/20/23	CCC-	USD	23			(20,125)		33		(20,158)
Altice Luxembourg SA	5.00		Quarterly	Citibank NA	12/20/24	NR	EUR	30			(671)		3,318		(3,989)
Garfunkelux Holdco 2 SA	5.00		Quarterly	Credit Suisse International	12/20/24	B-	EUR	200			(55,937)		8,926		(64,863)
Garfunkelux Holdco 2 SA	5.00		Quarterly	Credit Suisse International	12/20/24	B-	EUR	80			(22,375)		4,678		(27,053)
Garfunkelux Holdco 2 SA	5.00		Quarterly	Credit Suisse International	12/20/24	B-	EUR	60			(16,782)		(759)		(16,023)
Garfunkelux Holdco 2 SA	5.00		Quarterly	Credit Suisse International	12/20/24	B-	EUR	100			(27,970)		—		(27,970)
Garfunkelux Holdco 2 SA	5.00		Quarterly	Credit Suisse International	12/20/24	B-	EUR	20			(5,593)		671		(6,264)
Intrum AB	5.00		Quarterly	Credit Suisse International	12/20/24	BB+	EUR	100			(22,033)		3,158		(25,191)
Tesco plc	1.00		Quarterly	Barclays Bank plc	12/20/25	BBB-	EUR	100			(1,297)		(2,445)		1,148

SCHEDULES OF INVESTMENTS 43

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund

OTC Credit Default Swaps — Sell Protection (continued)

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)
Tesco plc		1.00	%		Quarterly	Morgan Stanley & Co. International plc		12/20/28	BBB-		EUR    370	$	(22,812	)	$	(32,852	)	$	10,040
												$	(297,718	)	$	(46,419	)	$	(251,299	)

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

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

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		1.45	%

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)	$	34,695	$	(2,008,431	)	$	—	$	(316,135	)	$	—
OTC Swaps		21,161		(97,368	)		38,744		(262,487	)		—
Options Written		N/A		N/A			10,310		(266,040	)		(349,170	)

^(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
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	3,498,479	$	—	$	3,498,479
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		1,722,710		—		—		1,722,710
Options purchased
Investments at value — unaffiliated(b)		—		1,356		286,415		—		242,320		—		530,091
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		59,905		—		—		—		—		59,905
	$	—	$	61,261	$	286,415	$	1,722,710	$	3,740,799	$	—	$	5,811,185

44 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	26,140	$	—	$	26,140
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		38,436		—		—		38,436
Options written
Options written at value		—		—		349,170		—		—		—		349,170
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		316,135		—		—		—		—		316,135
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		359,855		—		—		—		—		359,855
	$	—	$	675,990	$	349,170	$	38,436	$	26,140	$	—	$	1,089,736

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

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

For the six months ended March 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	(408,965	)	$	—		$	12,983,085		$	—	$	12,574,120
Forward foreign currency exchange contracts		—		—			—			(174,872	)		—			—		(174,872	)
Options purchased(a)		—		(404,800	)		(935,771	)		—			(1,348,742	)		—		(2,689,313	)
Options written		—		(1,683,760	)		258,398			—			118,581			—		(1,306,781	)
Swaps		—		(9,723,895	)		—			—			—			—		(9,723,895	)
	$	—	$	(11,812,455	)	$	(1,086,338	)	$	(174,872	)	$	11,752,924		$	—	$	(1,320,741	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			(1,837	)		—			4,096,980			—		4,095,143
Forward foreign currency exchange contracts		—		—			—			1,106,653			—			—		1,106,653
Options purchased(b)		—		(327,272	)		1,699,171			—			(377,555	)		—		994,344
Options written		—		(97,037	)		(906,918	)		—			—			—		(1,003,955	)
Swaps		—		(1,414,458	)		—			—			—			—		(1,414,458	)
	$	—	$	(1,838,767	)	$	790,416		$	1,106,653		$	3,719,425		$	—	$	3,777,727

^(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	$	201,434,949
Average notional value of contracts — short		11,967,519
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		57,733,670
Average amounts sold — in USD		2,227,861
Options:
Average value of option contracts purchased		261,375
Average value of option contracts written		200,544
Average notional value of swaption contracts purchased		201,875,000
Credit default swaps:
Average notional value — buy protection		306,662
Average notional value — sell protection		48,187,572

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

SCHEDULES OF INVESTMENTS 45

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	527,670		$	498,336
Forward foreign currency exchange contracts		1,722,710			38,436
Options(a)		530,091			349,170
Swaps — Centrally cleared		—			558,511
Swaps — OTC(b)		59,905			359,855
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	2,840,376		$	1,804,308
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(814,085	)		(1,406,017	)
Total derivative assets and liabilities subject to an MNA	$	2,026,291		$	398,291

^(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)(d)
Bank of America NA	$	1,369,036	$	(13,191	)	$	—	$	—		$	1,355,845
Barclays Bank plc		103,448		(72,141	)		—		—			31,307
BNP Paribas SA		2,124		(2,124	)		—		—			—
Citibank NA		41,955		(12,712	)		—		—			29,243
Credit Suisse International		44,989		(44,989	)		—		—			—
Goldman Sachs International		327		(327	)		—		—			—
JPMorgan Chase Bank NA		144,882		(16,120	)		—		(128,762	)		—
Morgan Stanley & Co. International plc		318,425		(50,237	)		—		—			268,188
UBS AG		1,105		—			—		—			1,105
	$	2,026,291	$	(211,841	)	$	—	$	(128,762	)	$	1,685,688

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)(e)
Bank of America NA	$	13,191	$	(13,191	)	$	—	$	—	$	—
Barclays Bank plc		72,141		(72,141	)		—		—		—
BNP Paribas SA		3,348		(2,124	)		—		—		1,224
Citibank NA		12,712		(12,712	)		—		—		—
Credit Suisse International		197,911		(44,989	)		—		—		152,922
Deutsche Bank AG		162		—			—		—		162
Goldman Sachs International		32,469		(327	)		—		—		32,142
JPMorgan Chase Bank NA		16,120		(16,120	)		—		—		—
Morgan Stanley & Co. International plc		50,237		(50,237	)		—		—		—
	$	398,291	$	(211,841	)	$	—	$	—	$	186,450

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

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

46 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—	$	76,662,504	$	21,045,324	$	97,707,828
Common Stocks:
Aerospace & Defense		34,099		—		—		34,099
Chemicals		427,848		—		—		427,848
Commercial Services & Supplies		—		—		9,816		9,816
Consumer Finance		—		13,963		—		13,963
Diversified Telecommunication Services		—		42,760		—		42,760
Electric Utilities		—		44,144		—		44,144
Energy Equipment & Services		—		243		—		243
Equity Real Estate Investment Trusts (REITs)		798,438		—		—		798,438
Health Care Providers & Services		—		—		213		213
Life Sciences Tools & Services		18,202		—		—		18,202
Machinery		—		14,150		—		14,150
Media		49,229		—		—		49,229
Metals & Mining		128,557		—		—		128,557
Pharmaceuticals		265,112		—		—		265,112
Software		97		—		—		97
Corporate Bonds(a)		—		624,374,034		—		624,374,034
Floating Rate Loan Interests:
Aerospace & Defense		—		5,201,403		273,600		5,475,003
Airlines		—		1,537,198		—		1,537,198
Auto Components		—		645,026		1,560,479		2,205,505
Automobiles		—		630,013		—		630,013
Building Products		—		1,257,138		—		1,257,138
Capital Markets		—		1,173,320		1,594,708		2,768,028
Chemicals		—		2,475,727		3,408,366		5,884,093
Commercial Services & Supplies		—		6,920,646		1,939,626		8,860,272
Construction & Engineering		—		711,910		—		711,910
Construction Materials		—		2,300,891		458,783		2,759,674
Containers & Packaging		—		4,128,625		1,278,651		5,407,276
Diversified Consumer Services		—		5,978,880		753,155		6,732,035
Diversified Financial Services		—		7,436,576		2,007,442		9,444,018
Diversified Telecommunication Services		—		6,649,241		168,331		6,817,572
Electric Utilities		—		188,357		—		188,357
Electrical Equipment		—		465,176		416,064		881,240
Energy Equipment & Services		—		735,123		8,454		743,577
Entertainment		—		2,481,476		—		2,481,476
Equity Real Estate Investment Trusts (REITs)		—		1,209,940		467,101		1,677,041
Food & Staples Retailing		—		1,916,801		—		1,916,801
Food Products		—		3,982,469		1,750,463		5,732,932
Health Care Equipment & Supplies		—		3,388,716		—		3,388,716
Health Care Providers & Services		—		7,273,216		2,004,554		9,277,770
Health Care Technology		—		610,809		2,170,728		2,781,537
Hotels, Restaurants & Leisure		—		7,852,919		237,882		8,090,801
Household Durables		—		73,194		—		73,194
Independent Power and Renewable Electricity Producers		—		580,640		269,234		849,874
Industrial Conglomerates		—		2,054,960		2,153,440		4,208,400
Insurance		—		7,770,210		—		7,770,210
IT Services		—		12,744,067		6,120,949		18,865,016
Life Sciences Tools & Services		—		1,886,161		—		1,886,161
Machinery		—		3,594,742		63,964		3,658,706
Media		—		8,022,679		1,501,048		9,523,727
Metals & Mining		—		1,008,022		—		1,008,022
Multiline Retail		—		198,987		—		198,987
Multi-Utilities		—		633,775		—		633,775
Oil, Gas & Consumable Fuels		—		828,610		—		828,610

SCHEDULES OF INVESTMENTS 47

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund

	Level 1			Level 2			Level 3		Total
Personal Products	$	—		$	734,220		$	—	$	734,220
Pharmaceuticals		—			5,435,056			690,894		6,125,950
Professional Services		—			227,207			1,348,207		1,575,414
Real Estate Management & Development		—			332,193			585,933		918,126
Road & Rail		—			2,027,099			—		2,027,099
Semiconductors & Semiconductor Equipment		—			212,554			35,366		247,920
Software		—			15,190,659			4,666,798		19,857,457
Specialty Retail		—			2,469,954			608,721		3,078,675
Technology Hardware, Storage & Peripherals		—			1,271,221			—		1,271,221
Trading Companies & Distributors		—			505,976			—		505,976
Wireless Telecommunication Services		—			1,458,241			—		1,458,241
Foreign Agency Obligations(a)		—			14,411,917			—		14,411,917
Foreign Government Obligations(a)		—			4,984,713			—		4,984,713
Investment Companies		38,733,725			—			—		38,733,725
Non-Agency Mortgage-Backed Securities		—			27,124,459			1,382,429		28,506,888
Preferred Securities(a)		—			9,980,788			—		9,980,788
U.S. Government Sponsored Agency Securities		—			558,322			—		558,322
Short-Term Securities		92,578,473			—			—		92,578,473
Options Purchased:
Credit contracts		—			1,356			—		1,356
Equity contracts		286,415			—			—		286,415
Interest rate contracts		—			242,320			—		242,320
Liabilities:
Unfunded Floating Rate Loan Interests(b)		—			(35,644	)		—		(35,644	)
Subtotal	$	133,320,195		$	904,832,052		$	60,980,723	$	1,099,132,970
Investments valued at NAV(c)										22,677
Total Investments									$	1,099,155,647
Derivative Financial Instruments(d)
Assets:
Credit contracts	$	—		$	38,744		$	—	$	38,744
Foreign currency exchange contracts		—			1,722,710			—		1,722,710
Interest rate contracts		3,498,479			—			—		3,498,479
Liabilities:
Credit contracts		—			(578,622	)		—		(578,622	)
Equity contracts		(349,170	)		—			—		(349,170	)
Foreign currency exchange contracts		—			(38,436	)		—		(38,436	)
Interest rate contracts		(26,140	)		—			—		(26,140	)
	$	3,123,169		$	1,144,396		$	—	$	4,267,565

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

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

^(c)  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.

^(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.

48 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Credit Strategies Income Fund

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

	Asset- Backed Securities			Common Stocks			Floating Rate Loan Interests			Non-Agency Mortgage- Backed Securities			Total
Investments:
Assets:
Opening balance, as of September 30, 2019	$	6,491,103		$	67,907		$	8,561,187		$	3,182,368		$	18,302,565
Transfers into level 3(a)		—			27			28,002,019			—			28,002,046
Transfers out of level 3		—			(61,232	)		(2,027,541	)		—			(2,088,773	)
Accrued discounts/premiums		2,445			—			36,078			(389	)		38,134
Net realized gain (loss)		(22,676	)		—			(1,822,692	)		4,325			(1,841,043	)
Net change in unrealized appreciation (depreciation)(b)(c)		(835,197	)		3,327			(4,214,012	)		(15,567	)		(5,061,449	)
Purchases		16,469,087			—			30,348,034			—			46,817,121
Sales		(1,059,438	)		—			(20,340,132	)		(1,788,308	)		(23,187,878	)
Closing balance, as of March 31, 2020	$	21,045,324		$	10,029		$	38,542,941		$	1,382,429		$	60,980,723
Net change in unrealized appreciation (depreciation) on investments still held at March 31, 2020(c)	$	(838,519	)	$	3,327		$	(4,228,758	)	$	(15,567	)	$	(5,079,517	)

^(a)  As of September 30, 2019, the Fund used observable inputs in determining the value of certain investments. As of March 31, 2020, the Fund used significant unobservable inputs in determining the value of the same investments. As a result, investments at beginning of period value were transferred from Level 2 to Level 3 in the disclosure hierarchy.

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

^(c)  Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at March 31, 2020 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 49

Schedule of Investments  (unaudited) March 31, 2020 BlackRock GNMA Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Non-Agency Mortgage-Backed Securities — 0.4%
Collateralized Mortgage Obligations — 0.4%
Seasoned Credit Risk Transfer Trust:
Series2018-4, Class MA, 3.50%, 03/25/58	USD		1,099	$	1,161,087
Series2019-2, Class MA, 3.50%, 08/25/58			637		675,064
					1,836,151
TotalNon-Agency Mortgage-Backed Securities — 0.4% (Cost: $1,719,972)					1,836,151
U.S. Government Sponsored Agency Securities — 155.4%
Collateralized Mortgage Obligations — 9.8%
Federal Home Loan Mortgage Corp.:
Series 3745, Class ZA, 4.00%, 10/15/40			360		418,862
Series 3780, Class ZA, 4.00%, 12/15/40			812		949,779
Series 3960, Class PL, 4.00%, 11/15/41			900		1,049,388
Series 4325, Class ZX, 4.50%, 04/15/44			2,478		2,979,434
Series 4384, Class LB, 3.50%, 08/15/43			1,500		1,655,974
Federal National Mortgage Association:
Series1996-48, Class Z, 7.00%, 11/25/26			162		177,477
Series2010-134, Class KZ, 4.50%, 12/25/40			469		496,858
Series2010-141, Class LZ, 4.50%, 12/25/40			364		389,575
Series2011-8, Class ZA, 4.00%, 02/25/41			2,457		2,713,607
Series2011-131, Class LZ, 4.50%, 12/25/41			329		348,323
Series2017-76, Class PB, 3.00%, 10/25/57			1,125		1,251,426
Series2018-21, Class CA, 3.50%, 04/25/45			1,455		1,552,667
Federal National Mortgage Association Variable Rate Notes, Series2018-32, Class PS, (LIBOR USD 1 Month + 7.23%), 6.13%, 05/25/48(a)			1,752		2,054,181
Government National Mortgage Association:
Series2009-122, Class PY, 6.00%, 12/20/39			665		769,920
Series2016-123, Class LM, 3.00%, 09/20/46			400		450,894
Series2019-5, Class P, 3.50%, 07/20/48			751		806,306
Government National Mortgage Association Variable Rate Notes(b):
Series2009-31, Class PT, 3.64%, 05/20/39			266		279,547
Series2014-107, Class WX, 6.81%, 07/20/39			1,246		1,483,204
Series2015-55, Class A, 5.40%, 03/16/36			9,385		11,152,657
Series2015-103, Class B, 6.90%, 01/20/40			5,827		7,021,273
Series2015-187, Class C, 5.26%, 03/20/41			10,143		12,011,846
					50,013,198
Commercial Mortgage-Backed Securities — 2.8%
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Series K076, Class A2, 3.90%, 04/25/28			620		728,525
Federal Home Loan Mortgage Corp. Variable Rate Notes(b):
Series 2019-SB60, Class A10F, 3.31%, 01/25/29			1,696		1,771,551
Series 2019-SB61, Class A10F, 3.17%, 01/25/29			1,396		1,467,004
Series K077, Class A2, 3.85%, 05/25/28			4,457		5,220,257
Series K085, Class A2, 4.06%, 10/25/28			2,555		3,053,623
Federal National Mortgage Association ACES Variable Rate Notes, Series2018-M4, Class A2, 3.05%, 03/25/28(b)			1,770		1,930,037
Government National Mortgage Association, Series2019-7, Class V, 3.00%, 05/16/35			167		178,856
					14,349,853
Interest Only Collateralized Mortgage Obligations — 2.3%
Federal Home Loan Mortgage Corp.:
Series 4062, Class GI, 4.00%, 02/15/41			104		9,337

Security		Par (000)		Value
Interest Only Collateralized Mortgage Obligations (continued)
Series 4533, Class JI, 5.00%, 12/15/45	USD		733	$	122,246
Federal Home Loan Mortgage Corp. Variable Rate Notes(a):
Series 4119, Class SC, (LIBOR USD 1 Month + 6.15%), 5.45%, 10/15/42			2,241		389,822
Series 4309, Class SJ, (LIBOR USD 1 Month + 6.10%), 5.40%, 02/15/44			1,163		201,391
Series 4901, Class CS, (LIBOR USD 1 Month + 6.10%), 5.40%, 07/25/49			4,722		862,599
Series 4941, Class SH, (LIBOR USD 1 Month + 5.95%), 5.25%, 12/25/49			2,987		575,345
Federal National Mortgage Association:
Series2013-10, Class PI, 3.00%, 02/25/43			135		11,681
Series2014-68, Class YI, 4.50%, 11/25/44			174		25,749
Series2015-74, Class IA, 6.00%, 10/25/45			4,166		826,696
Series2015-77, 6.00%, 10/25/45			4,929		982,616
Series2017-68, Class IE, 4.50%, 09/25/47			4,562		711,412
Series2018-63, 3.00%, 09/25/48			788		79,788
Series 395, Class 7, 5.50%, 11/25/39			246		41,516
Federal National Mortgage Association Variable Rate Notes(a):
Series2015-66, Class AS, (LIBOR USD 1 Month + 6.25%), 5.30%, 09/25/45			6,483		1,226,373
Series2016-60, Class SD, (LIBOR USD 1 Month + 6.10%), 5.15%, 09/25/46			1,007		198,074
Series2016-78, Class CS, (LIBOR USD 1 Month + 6.10%), 5.15%, 05/25/39			1,254		226,907
Series2016-81, Class CS, (LIBOR USD 1 Month + 6.10%), 5.15%, 11/25/46			1,754		326,289
Series2017-70, Class SA, (LIBOR USD 1 Month + 6.15%), 5.20%, 09/25/47			1,369		257,314
Series2017-81, Class SM, (LIBOR USD 1 Month + 6.20%), 5.25%, 10/25/47			2,251		608,602
Series2019-5, Class SA, (LIBOR USD 1 Month + 6.10%), 5.15%, 03/25/49			5,754		995,493
Series2019-25, Class SA, (LIBOR USD 1 Month + 6.05%), 5.10%, 06/25/49			4,712		942,838
Series2019-35, Class SA, (LIBOR USD 1 Month + 6.10%), 5.15%, 07/25/49			2,596		468,479
Government National Mortgage Association:
Series2014-113, Class NI, 5.00%, 07/20/44			211		39,217
Series2017-139, Class IB, 4.50%, 09/20/47			665		82,623
Series2017-144, Class DI, 4.50%, 09/20/47			500		57,090
Series2018-89, Class CI, 5.00%, 12/20/47			652		113,975
Government National Mortgage Association Variable Rate Notes(a):
Series2010-108, Class SG, (LIBOR USD 1 Month + 6.10%), 5.33%, 09/20/39			361		8,434
Series2015-64, Class SG, (LIBOR USD 1 Month + 5.60%), 4.83%, 05/20/45			6,834		1,088,243
					11,480,149
Interest Only Commercial Mortgage-Backed Securities — 1.3%
Government National Mortgage Association Variable Rate Notes(b):
Series2016-22, 0.77%, 11/16/55			21,332		1,001,977
Series2016-45, 0.98%, 02/16/58			14,238		877,776
Series2016-92, 0.96%, 04/16/58			4,838		299,503
Series2016-110, 1.01%, 05/16/58			4,593		293,086
Series2016-113, 1.15%, 02/16/58			10,718		811,031
Series2016-151, 1.07%, 06/16/58			15,989		1,098,200
Series2017-53, 0.69%, 11/16/56			20,186		1,004,063
Series2017-61, 0.76%, 05/16/59			4,715		288,537
Series2017-64, 0.70%, 11/16/57			6,715		372,765
Series2017-72, 0.68%, 04/16/57			11,684		625,254
					6,672,192

50 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock GNMA Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)			Value
Mortgage-Backed Securities — 139.2%
Federal Home Loan Mortgage Corp.:
3.00%, 06/01/35 - 07/01/35	USD		1,449		$	1,536,373
3.50%, 07/01/26 - 09/01/26			45			47,855
4.00%, 04/01/20 - 05/01/26			162			170,627
5.00%, 05/01/35 - 12/01/38			93			103,348
5.65%, 05/01/37 - 12/01/37			992			1,088,508
5.75%, 08/01/37 - 04/01/38			1,575			1,732,223
7.50%, 03/01/27			—	(c)		87
Federal National Mortgage Association:
3.40%, 04/01/41			163			167,017
3.50%, 11/01/46			1,730			1,861,157
4.45%, 03/01/36 - 06/01/36			781			825,830
4.94%, 01/01/35 - 05/01/35			180			186,263
5.00%, 04/01/36			100			105,152
5.20%, 08/01/34 - 09/01/34			225			234,771
5.25%, 08/01/37 - 09/01/37			990			1,087,030
5.54%, 01/01/35			74			77,006
5.75%, 04/01/37			397			433,987
5.80%, 07/01/34			47			48,795
5.94%, 09/01/34			75			78,790
6.50%, 09/01/28 - 02/01/31			1,460			1,629,267
Government National Mortgage Association:
2.50%, 04/15/50(d)			29,221			30,538,228
3.00%, 05/15/42 - 09/20/46			17,354			18,627,321
3.00%, 04/15/50(d)			116,911			123,583,147
3.50%, 04/15/41 - 11/20/47			110,944			118,657,858
3.50%, 08/20/42(e)			38,743			41,437,694
3.50%, 04/15/50(d)			48,379			50,991,050
4.00%, 10/20/41 - 12/20/47			62,309			67,188,550
4.00%, 04/15/50(d)			14,471			15,373,331
4.50%, 12/15/34 - 12/20/49			37,953			40,954,733
4.50%, 05/20/49(e)			42,030			44,606,193
5.00%, 09/15/28 - 09/20/48			28,483			31,172,087
5.00%, 04/15/50(d)			1,900			2,021,125
5.30%, 12/15/36 - 04/15/37			236			256,419
5.50%, 03/15/32 - 12/15/34			8,049			9,085,968
5.64%, 02/15/37 - 06/15/37			2,038			2,258,770
5.65%, 05/20/37 - 02/20/38			1,139			1,232,777
5.75%, 08/20/37 - 04/20/38			516			555,373
5.80%, 11/15/36 - 03/15/37			1,919			2,113,223
6.00%, 03/20/28 - 01/15/39			10,374			11,713,618
6.50%, 09/20/27 - 10/20/40			3,999			4,589,703
7.00%, 03/20/24 - 05/20/27			16			17,300
7.50%, 04/20/23 - 10/20/25			2			2,527
8.00%, 05/15/21 - 05/15/30			46			48,097
8.50%, 11/15/21 - 02/15/25			18			18,076
9.00%, 06/15/21 - 10/15/21			3			2,748
9.50%, 09/15/20 - 09/15/22			2			1,780
Uniform Mortgage-Backed Securities:
2.50%, 04/25/35 - 04/25/50(d)			21,989			22,778,889
3.00%, 07/01/35 - 04/01/50			44,447			46,816,678
3.00%, 04/25/50(d)			1,133			1,187,747
3.50%, 04/25/35(d)			1,796			1,888,817
3.50%, 03/01/43 - 08/01/43			2,001			2,147,163
4.00%, 07/01/43			3,487			3,791,649
4.00%, 04/25/50(d)			296			315,659
5.00%, 01/01/21 - 07/01/35			1,581			1,752,182
5.25%, 07/01/37 - 08/01/37			617			670,097
5.50%, 12/01/32 - 04/01/35			135			151,476
6.50%, 08/01/35			755			881,359
						710,843,498
Total U.S. Government Sponsored Agency Securities — 155.4% (Cost: $770,265,675)						793,358,890

Security			Par (000)		Value
U.S. Treasury Obligations — 1.4%
U.S. Treasury Inflation Linked Notes:
0.50%, 04/15/24		USD		4,787	$	4,856,085
0.13%, 10/15/24				2,551		2,581,993
Total U.S. Treasury Obligations — 1.4% (Cost: $7,360,927)						7,438,078
Total Long-Term Investments — 157.2% (Cost: $779,346,574)						802,633,119
	Shares
Short-Term Securities — 3.3%
Money Market Funds — 3.2%
BlackRock Liquidity Funds,T-Fund, Institutional Class, 0.21%(f)*				16,511,307		16,511,307
Total Money Market Funds — 3.2% (Cost: $16,511,307)						16,511,307
	Par (000)
U.S. Treasury Obligations — 0.1%
U.S. Treasury Bills, 0.20%, 05/12/20(g)				287		286,969
Total U.S. Treasury Obligations — 0.1% (Cost: $286,934)						286,969
Total Short-Term Securities — 3.3% (Cost: $16,798,241)						16,798,276
Total Options Purchased — 0.0% (Cost: $131,471)						4,778
Total Investments Before Options Written and TBA Sale Commitments — 160.5% (Cost: $796,276,286)						819,436,173
Total Options Written — (0.2)% (Premium Received — $252,644)						(1,048,211	)
TBA Sale Commitments — (15.4)%(d)
Mortgage-Backed Securities — (15.4)%
Government National Mortgage Association:
2.50%, 04/15/50				8,191		(8,560,235	)
3.50%, 04/15/50				1,100		(1,169,832	)
4.50%, 04/15/50				5,900		(6,261,375	)
Uniform Mortgage-Backed Securities:
2.50%, 04/25/50				8,981		(9,303,755	)
3.00%, 04/25/50 - 05/25/50				46,959		(49,227,909	)
3.50%, 04/25/50				364		(384,683	)
4.00%, 04/25/50				3,525		(3,759,120	)
Total TBA Sale Commitments — (15.4)% (Proceeds: $77,199,833)						(78,666,909	)
Total Investments Net of Options Written and TBA Sale Commitments — 144.9% (Cost: $718,823,809)						739,721,053
Liabilities in Excess of Other Assets — (44.9)%						(229,091,428	)
Net Assets — 100.0%					$	510,629,625

SCHEDULES OF INVESTMENTS 51

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock GNMA Portfolio

^(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 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.

^(c)  Amount is less than 500.

^(d)  Represents or includes a TBA transaction.

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

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

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

* Investments in issuers considered to be an affiliate/affiliates of the Fund during the six months ended March 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Shares Held at 09/30/19		Shares Purchased		Shares Sold		Shares Held at 03/31/20		Value at 03/31/20		Income		Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class(b)		2,823,418		13,687,889		—		16,511,307	$	16,511,307	$	31,059	$	6	$	—

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

^(b)  Represents net shares purchased (sold).

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
BNP Paribas SA		0.95	%		03/19/20		04/15/20	$	18,074,750	$	18,080,474	U.S. Government Sponsored Agency Securities	Up to 30 days
Credit Suisse Securities (USA) LLC		0.85			03/20/20		04/21/20		42,217,339		42,226,310	U.S. Government Sponsored Agency Securities	Up to 30 days
								$	60,292,089	$	60,306,784

52 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock GNMA Portfolio

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		64		06/30/20	$	14,105	$	28,201
Short Contracts
90-day Eurodollar		23		06/15/20		5,720		(48,333	)
U.S. Treasury 10 Year Note		218		06/19/20		30,234		(460,143	)
U.S. Treasury 10 Year Ultra Note		5		06/19/20		780		(13,130	)
U.S. Treasury Long Bond		53		06/19/20		9,490		(798,662	)
U.S. Treasury Ultra Bond		6		06/19/20		1,331		(141,892	)
U.S. Treasury 5 Year Note		11		06/30/20		1,379		(1,387	)
90-day Eurodollar		23		09/14/20		5,730		(40,269	)
90-day Eurodollar		23		12/14/20		5,730		(43,857	)
90-day Eurodollar		22		03/15/21		5,484		(30,405	)
90-day Eurodollar		12		06/14/21		2,991		(26,400	)
90-day Eurodollar		12		09/13/21		2,991		(11,642	)
90-day Eurodollar		21		12/13/21		5,233		(18,666	)
90-day Eurodollar		11		03/14/22		2,741		(2,947	)
90-day Eurodollar		9		12/19/22		2,239		(9,237	)
								(1,646,970	)
							$	(1,618,769	)

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

Put10-Year Interest Rate Swap(a)

2.11

%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

08/17/20

2.11

%

USD

15,000

$

4,778

^(a)  Forward settling swaption.

Exchange-Traded Options Written

Description	Number of Contracts		Expiration Date		Exercise Price			Notional Amount (000)			Value
Call
U.S. Treasury 10 Year Note		34		05/22/20		USD	133.50		USD	3,400	$	(184,875	)
U.S. Treasury 10 Year Note		58		05/22/20		USD	136.50		USD	5,800		(161,313	)
U.S. Treasury 10 Year Note		102		05/22/20		USD	132.50		USD	10,200		(651,844	)
											$	(998,032)

SCHEDULES OF INVESTMENTS 53

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock GNMA Portfolio

OTC Interest Rate Swaptions Written

Description

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Rate

Frequency

Rate

Frequency

Call

10-Year Interest Rate Swap(a)

3 month LIBOR

Quarterly

0.35%

Semi-Annual

Deutsche Bank AG

09/30/20

0.35

%

USD

3,900

$

(39,477

)

Put

2-Year Interest Rate Swap(a)

0.60%

Semi-Annual

3 month LIBOR

Quarterly

Deutsche Bank AG

09/25/20

0.60

USD

33,700

(10,702

)

$

(50,179

)

^(a)  Forward settling swaption.

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
2.66%	Semi-Annual	3 month LIBOR	Quarterly		02/06/23	USD	12,000	$	(770,820	)	$	—	$	(770,820	)
2.87%	Semi-Annual	3 month LIBOR	Quarterly		03/23/23	USD	9,600		(700,697	)		—		(700,697	)
3 month LIBOR	Quarterly	2.61%	Semi-Annual		02/07/24	USD	5,400		451,707			—		451,707
2.71%	Semi-Annual	3 month LIBOR	Quarterly		03/18/24	USD	13,300		(1,205,175	)		—		(1,205,175	)
3 month LIBOR	Quarterly	3.13%	Semi-Annual		05/22/28	USD	1,750		365,099			—		365,099
2.85%	Semi-Annual	3 month LIBOR	Quarterly		12/21/28	USD	2,000		(390,558	)		—		(390,558	)
2.64%	Semi-Annual	3 month LIBOR	Quarterly		03/14/29	USD	2,700		(473,052	)		—		(473,052	)
3 month LIBOR	Quarterly	2.52%	Semi-Annual		04/08/29	USD	4,000		683,074			—		683,074
3 month LIBOR	Quarterly	1.45%	Semi-Annual		08/19/29	USD	2,100		144,201			—		144,201
2.03%	Semi-Annual	3 month LIBOR	Quarterly		09/09/29	USD	8,200		(1,027,949	)		—		(1,027,949	)
3 month LIBOR	Quarterly	1.47%	Semi-Annual		09/09/29	USD	1,800		131,305			—		131,305
1.59%	Semi-Annual	3 month LIBOR	Quarterly		09/12/29	USD	1,400		(118,583	)		—		(118,583	)
1.66%	Semi-Annual	3 month LIBOR	Quarterly		03/16/30	USD	12,400		(1,173,586	)		—		(1,173,586	)
								$	(4,085,034	)	$	—	$	(4,085,034	)

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	1.45%

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)	$	—	$	—	$	1,775,386	$	(5,860,420	)	$	—
Options Written		N/A		N/A		29,540		(825,107	)		(1,048,211	)

^(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.

54 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock GNMA 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
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	28,201	$	—	$	28,201
Options purchased
Investments at value — unaffiliated(b)		—		—		—		—		4,778		—		4,778
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		—		—		—		1,775,386		—		1,775,386
	$	—	$	—	$	—	$	—	$	1,808,365	$	—	$	1,808,365
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		1,646,970		—		1,646,970
Options written
Options written at value		—		—		—		—		1,048,211		—		1,048,211
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		—		—		—		5,860,420		—		5,860,420
	$	—	$	—	$	—	$	—	$	8,555,601	$	—	$	8,555,601

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

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

For the six months ended March 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(2,776,826	)	$	—	$	(2,776,826	)
Options purchased(a)		—		—		—		—		(213,317	)		—		(213,317	)
Options written		—		—		—		—		312,511			—		312,511
Swaps		—		—		—		—		(1,631,487	)		—		(1,631,487	)
	$	—	$	—	$	—	$	—	$	(4,309,119	)	$	—	$	(4,309,119	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—		—		(1,645,093	)		—		(1,645,093	)
Options purchased(b)		—		—		—		—		41,192			—		41,192
Options written		—		—		—		—		(773,934	)		—		(773,934	)
Swaps		—		—		—		—		(1,044,431	)		—		(1,044,431	)
	$	—	$	—	$	—	$	—	$	(3,422,266	)	$	—	$	(3,422,266	)

^(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 55

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock GNMA Portfolio

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	32,540,300
Average notional value of contracts — short		80,136,147
Options:
Average value of option contracts written		499,016
Average notional value of swaption contracts purchased		43,700,000
Average notional value of swaption contracts written		28,450,000
Interest rate swaps:
Average notional value — pays fixed rate		88,100,000
Average notional value — receives fixed rate		15,050,000

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	$	141,246		$	8,118
Options(a)		4,778			1,048,211
Swaps — Centrally cleared		52,888			—
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	198,912		$	1,056,329
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(194,134	)		(1,006,150	)
Total derivative assets and liabilities subject to an MNA	$	4,778		$	50,179

^(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.

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		Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets (a)
Citibank NA	$	4,778	$	—	$	—	$	—	$	4,778
Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset		Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities (b)
Deutsche Bank AG	$	50,179	$	—	$	—	$	—	$	50,179

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

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

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments(a)	$	—	$	802,633,119	$	—	$	802,633,119
Short-Term Securities:
Money Market Funds		16,511,307		—		—		16,511,307

56 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock GNMA Portfolio

	Level 1			Level 2			Level 3		Total
U.S. Treasury Obligations	$	—		$	286,969		$	—	$	286,969
Options Purchased:
Interest rate contracts		—			4,778			—		4,778
Liabilities:
Investments:
TBA Sale Commitments		—			(78,666,909	)		—		(78,666,909	)
	$	16,511,307		$	724,257,957		$	—	$	740,769,264
Derivative Financial Instruments(b)
Assets:
Interest rate contracts	$	28,201		$	1,775,386		$	—	$	1,803,587
Liabilities:
Interest rate contracts		(2,645,002	)		(5,910,599	)		—		(8,555,601	)
	$	(2,616,801	)	$	(4,135,213	)	$	—	$	(6,752,014	)

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

^(b)  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 $60,306,784 are categorized as Level 2 within the disclosure hierarchy.

See notes to financial statements.

SCHEDULES OF INVESTMENTS 57

Schedule of Investments  (unaudited) March 31, 2020 BlackRock U.S. Government Bond Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Asset-Backed Securities — 0.8%(a)
Dryden XXVIII Senior Loan Fund, Series 2013-28A, Class A1LR, (LIBOR USD 3 Month + 1.20%), 2.89%, 08/15/30(b)		USD 5,800	$	5,469,243
LMREC, Inc., Series 2016-CRE2, Class A, (LIBOR USD 1 Month + 1.70%), 3.33%, 11/24/31(b)		99		97,743
Mosaic Solar Loan Trust, Series2019-2A, Class A, 2.88%, 09/20/40		216		208,421
Progress Residential Trust, Series 2017-SFR1, Class A, 2.77%, 08/17/34		976		963,259
Total Asset-Backed Securities — 0.8% (Cost: $7,090,389)				6,738,666
Foreign Agency Obligations — 0.0%
Mexico — 0.0%
Petroleos Mexicanos:
6.63%, 06/15/35		64		42,817
6.95%, 01/28/60(a)		48		32,400
				75,217
Total Foreign Agency Obligations — 0.0% (Cost: $113,011)				75,217
Foreign Government Obligations — 0.2%
Colombia — 0.0%
Titulos de Tesoreria, 7.25%, 10/18/34		COP    116,900		28,452
Indonesia — 0.1%
Republic of Indonesia:
6.63%, 05/15/33		IDR    552,000		29,258
7.50%, 06/15/35		3,130,000		179,817
8.38%, 04/15/39		4,136,000		250,924
				459,999
Israel — 0.0%
State of Israel Government Bond, 3.88%, 07/03/50		USD    200		205,500
Panama — 0.0%
Republic of Panama, 4.50%, 04/01/56		200		217,500
Russia — 0.1%
Russian Federation:
4.38%, 03/21/29		200		214,000
8.50%, 09/17/31		RUB    23,422		339,491
				553,491
Total Foreign Government Obligations — 0.2% (Cost: $1,593,664)				1,464,942
Non-Agency Mortgage-Backed Securities — 3.2%
Collateralized Mortgage Obligations — 0.4%
Seasoned Credit Risk Transfer Trust:
Series2018-2, Class MA, 3.50%, 11/25/57		USD 1,076		1,134,816
Series2018-3, Class MA, 3.50%, 08/25/57		1,497		1,580,166
Series2019-2, Class MA, 3.50%, 08/25/58		850		900,086
				3,615,068
Commercial Mortgage-Backed Securities — 2.5%
BANK:
Series 2020-BN26, Class A4, 2.40%, 03/15/63		1,387		1,367,053
Series 2020-BN26, Class B, 2.91%, 03/15/63(c)		1,650		1,384,376

Security	Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Benchmark Mortgage Trust, Series2020-B17, Class A5, 2.29%, 03/15/53		USD 1,004	$	983,864
BX Commercial Mortgage Trust, Series 2019- XL, Class D, 2.15%, 10/15/36(a)(c)		3,057		2,735,850
BX Trust, Series 2019-OC11, Class A, 3.20%, 12/09/41(a)		3,168		2,860,450
CFK Trust, Series2020-MF2, Class B, 2.79%, 03/15/39(a)		810		736,193
Commercial Mortgage Trust, Series 2017- PANW, Class A, 3.24%, 10/10/29(a)		4,050		3,989,826
CSAIL Commercial Mortgage Trust, Series2019-C17, Class C, 3.93%, 09/15/52		929		673,749
Hudson Yards Mortgage Trust, Series 2019- 30HY, Class D, 3.44%, 07/10/39(a)(c)		526		490,609
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2020-MKST, Class B, 1.75%, 12/15/36(a)(c)		986		904,172
KKR Industrial Portfolio Trust, Series2020-AIP, Class A, 2.04%, 03/15/37(a)(c)		411		366,836
Morgan Stanley Capital I Trust, Series 2018- SUN, Class A, 1.60%, 07/15/35(a)(c)		1,480		1,193,707
One Bryant Park Trust, Series2019-OBP, Class A, 2.52%, 09/15/54(a)		2,673		2,663,695
				20,350,380
Interest Only Commercial Mortgage-Backed Securities — 0.3%(c)
CSAIL Commercial Mortgage Trust:
Series2018-C14, Class XA, 0.57%, 11/15/51		3,497		130,378
Series2019-C16, Class XA, 1.57%, 06/15/52		10,294		1,128,718
UBS Commercial Mortgage Trust, Series 2019- C17, Class XA, 1.64%, 10/15/52		7,769		790,237
				2,049,333
TotalNon-Agency Mortgage-Backed Securities — 3.2% (Cost: $28,022,539)				26,014,781
U.S. Government Sponsored Agency Securities — 63.1%
Agency Obligations — 0.6%
Federal Home Loan Bank, 4.00%, 04/10/28 .		4,100		5,051,548
Federal National Mortgage Association Variable Rate Notes, Series1996-W1, Class AL, 7.25%, 03/25/26(c)		4		4,446
				5,055,994
Collateralized Mortgage Obligations — 2.3%
Federal Home Loan Mortgage Corp. Variable Rate Notes, Series 4901, Class BF, (LIBOR USD 1 Month + 0.40%), 1.10%, 07/25/49(b)		2,293		2,266,080
Federal National Mortgage Association:
Series2011-8, Class ZA, 4.00%, 02/25/41		2,355		2,600,540
Series2014-27, Class VC, 4.00%, 05/25/31		3,236		3,520,787
Federal National Mortgage Association Variable Rate Notes, Series2019-39, Class LF, (LIBOR USD 1 Month + 0.45%), 1.40%, 08/25/49(b)		2,602		2,579,036
Government National Mortgage Association, Series2016-123, Class LM, 3.00%, 09/20/46		500		563,618
Government National Mortgage Association Variable Rate Notes:
Series2014-107, Class WX, 6.81%, 07/20/39(c)		1,212		1,442,645
Series2019-21, Class FL, (LIBOR USD 1 Month + 0.45%), 1.22%, 02/20/49(b)		2,990		2,964,485

58 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock U.S. Government Bond Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Collateralized Mortgage Obligations (continued)
Series2019-89, Class FH, (LIBOR USD 1 Month + 0.40%), 1.17%, 07/20/49(b)		USD 3,028	$	3,007,024
				18,944,215
Commercial Mortgage-Backed Securities — 2.9%
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Series K074, Class A2, 3.60%, 01/25/28		1,070		1,233,105
Federal Home Loan Mortgage Corp. Variable Rate Notes(c):
Series 2019-SB60, Class A10F, 3.31%, 01/25/29		2,264		2,364,491
Series 2019-SB61, Class A10F, 3.17%, 01/25/29		1,870		1,965,290
Series K081, Class A2, 3.90%, 08/25/28		3,204		3,817,343
Series K082, Class A2, 3.92%, 09/25/28		2,115		2,510,184
Series K084, Class A2, 3.78%, 10/25/28		1,998		2,344,059
Series K085, Class A2, 4.06%, 10/25/28		2,600		3,107,405
Series K086, Class A2, 3.86%, 11/25/28		2,350		2,785,758
Federal National Mortgage Association ACES, Series2020-M5, Class A2, 2.21%, 01/25/30		3,015		3,123,044
Government National Mortgage Association, Series2019-7, Class V, 3.00%, 05/16/35		228		243,163
				23,493,842
Interest Only Commercial Mortgage-Backed Securities — 0.9%
Federal Home Loan Mortgage Corp., Series 2015-K718, Class X2A, 0.10%, 02/25/48(a)		189,288		243,745
Government National Mortgage Association Variable Rate Notes(c):
Series2005-9, 0.63%, 01/16/45		2,091		18,297
Series2005-50, 0.41%, 06/16/45		1,653		11,525
Series2006-30, 2.39%, 05/16/46		1,117		61,236
Series2016-22, 0.77%, 11/16/55		24,933		1,171,107
Series2016-45, 0.98%, 02/16/58		18,016		1,110,701
Series2016-92, 0.96%, 04/16/58		6,276		388,531
Series2016-113, 1.15%, 02/16/58		13,681		1,035,186
Series2016-151, 1.07%, 06/16/58		9,399		645,610
Series2017-30, 0.71%, 08/16/58		6,512		331,974
Series2017-44, 0.70%, 04/17/51		7,023		353,156
Series2017-53, 0.69%, 11/16/56		19,428		966,352
Series2017-61, 0.76%, 05/16/59		4,778		292,357
Series2017-64, 0.70%, 11/16/57		7,819		434,014
Series2017-72, 0.68%, 04/16/57		12,350		660,903
				7,724,694
Mortgage-Backed Securities — 56.4%
Federal Home Loan Mortgage Corp.:
2.50%, 03/01/30 - 04/01/31		1,905		1,985,254
3.00%, 09/01/27 - 12/01/46		4,939		5,214,753
3.50%, 12/01/40 - 01/01/48		5,860		6,290,758
4.00%, 08/01/40 - 12/01/45		2,886		3,142,654
4.50%, 02/01/39 - 08/01/48		3,450		3,775,223
5.00%, 04/01/36 - 10/01/41		1,041		1,152,288
5.50%, 06/01/41		1,035		1,172,828
Federal National Mortgage Association:
3.00%, 02/01/44		619		657,992
3.50%, 11/01/46		2,028		2,182,047
4.00%, 01/01/41		87		94,687
Government National Mortgage Association:
2.50%, 04/15/50(d)		2,297		2,400,544
3.00%, 02/15/45 - 12/20/46		16,971		18,169,865
3.00%, 04/15/50(d)		11,354		12,001,976
3.50%, 01/15/42 - 10/20/46		23,160		24,743,709
3.50%, 04/15/50(d)		4,833		5,093,940
4.00%, 04/20/39 - 01/15/48		7,924		8,532,200
4.00%, 04/15/50(d)		6,198		6,584,473

Security	Par (000)			Value
Mortgage-Backed Securities (continued)
4.50%, 12/20/39 - 04/20/49		USD 5,199		$	5,681,173
4.50%, 04/15/50(d)		4,779			5,071,714
5.00%, 12/15/38 - 07/20/41		2,465			2,728,336
5.00%, 04/15/50(d)		323			343,591
7.00%, 06/15/23 - 11/15/23		—	(e)		40
Uniform Mortgage-Backed Securities:
2.00%, 10/01/31 - 03/01/32		1,165			1,199,956
2.00%, 04/25/35(d)		160			164,259
2.50%, 04/01/30 - 02/01/33		6,439			6,712,303
2.50%, 04/25/35 - 04/25/50(d)		45,844			47,496,949
3.00%, 04/01/28 - 03/01/47		38,157			40,326,695
3.00%, 04/25/35 - 04/25/50(d)		27,460			28,778,250
3.50%, 11/01/28 - 01/01/48		30,482			32,640,908
3.50%, 04/25/35 - 04/25/50(d)		68,188			72,057,852
4.00%, 09/01/33 - 03/01/50		28,242			30,627,629
4.00%, 04/25/50(d)		43,042			45,900,283
4.50%, 02/01/25 - 07/01/48		7,567			8,279,454
4.50%, 04/25/50(d)		15,753			16,951,088
5.00%, 11/01/32 - 06/01/45		907			998,680
5.00%, 04/25/50(d)		2,157			2,326,780
5.50%, 02/01/35 - 04/01/41		3,136			3,535,516
6.00%, 05/01/33 - 06/01/41		2,902			3,331,100
6.50%, 05/01/40		642			748,713
					459,096,460
Total U.S. Government Sponsored Agency Securities — 63.1% (Cost: $501,795,121)					514,315,205
U.S. Treasury Obligations — 54.3%
U.S. Treasury Bonds:
4.25%, 05/15/39		1,760			2,737,488
4.50%, 08/15/39		1,760			2,820,606
4.38%, 11/15/39		1,760			2,788,088
3.13%, 02/15/43		6,770			9,272,784
2.88%, 05/15/43 - 11/15/46		13,280			17,742,650
3.63%, 08/15/43		6,770			9,994,741
3.75%, 11/15/43		6,770			10,192,024
3.00%, 02/15/48		6,510			9,037,711
2.25%, 08/15/49		9,205			11,213,919
U.S. Treasury Inflation Linked Notes:
0.50%, 04/15/24		61,862			62,755,562
0.13%, 10/15/24		9,501			9,616,370
U.S. Treasury Notes:
2.00%, 07/31/20 - 02/15/25		42,310			43,746,517
2.50%, 12/31/20		19,530			19,887,033
1.13%, 07/31/21		29,290			29,662,990
1.75%, 07/31/21 - 07/31/24		65,705			68,331,586
1.50%, 01/31/22 - 08/15/26		44,920			46,687,246
2.13%, 12/31/22 - 05/15/25		40,360			43,242,791
2.75%, 05/31/23		13,020			14,026,507
2.25%, 08/15/27		13,020			14,608,338
2.88%, 08/15/28		3,910			4,623,575
3.13%, 11/15/28		3,910			4,720,256
1.63%, 08/15/29		3,920			4,254,578
Total U.S. Treasury Obligations — 54.3% (Cost: $408,274,475)					441,963,360
Total Long-Term Investments — 121.6% (Cost: $946,889,199)					990,572,171

SCHEDULES OF INVESTMENTS 59

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock U.S. Government Bond Portfolio (Percentages shown are based on Net Assets)

Security	Shares		Value
Short-Term Securities — 7.0%
BlackRock Liquidity Funds,T-Fund, Institutional Class, 0.21%(f)*		57,220,993	$	57,220,993
Total Short-Term Securities — 7.0% (Cost: $57,220,993)				57,220,993
Total Options Purchased — 0.0% (Cost: $201,540)				17,718
Total Investments Before Options Written and TBA Sale Commitments — 128.6% (Cost: $1,004,311,732)				1,047,810,882
Total Options Written — (0.1)% (Premium Received — $345,213)				(1,334,496	)
	Par (000)
TBA Sale Commitments — (18.4)%(d)
Mortgage-Backed Securities — (18.4)%
Government National Mortgage Association:
2.50%, 04/15/50		343		(358,462	)

Security	Par (000)		Value
Mortgage-Backed Securities (continued)
3.00%, 04/15/50	USD	5,524	$	(5,839,256	)
3.50%, 04/15/50		200		(210,985	)
4.50%, 04/15/50		3,179		(3,455,548	)
5.00%, 04/15/50		508		(540,385	)
Uniform Mortgage-Backed Securities:
2.00%, 04/25/35		160		(164,259	)
3.00%, 04/25/35 - 05/25/50		22,484		(23,561,760	)
3.50%, 04/25/35 - 04/25/50		40,970		(43,288,214	)
4.00%, 04/25/35 - 04/25/50		32,334		(34,476,550	)
4.50%, 04/25/35		388		(405,096	)
2.50%, 04/25/50		30,689		(31,791,886	)
5.50%, 04/25/50		2,704		(2,959,718	)
6.00%, 04/25/50		2,510		(2,780,315	)
Total TBA Sale Commitments — (18.4)% (Proceeds: $148,366,108)				(149,832,434	)
Total Investments Net of Options Written and TBA Sale Commitments — 110.1% (Cost: $855,600,411)				896,643,952
Liabilities in Excess of Other Assets — (10.1)%				(82,232,278	)
Net Assets — 100.0%			$	814,411,674

^(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)  Represents or includes a TBA transaction.

^(e)  Amount is less than 500.

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

* Investments in issuers considered to be an affiliate/affiliates of the Fund during the six months ended March 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Shares Held at 09/30/19	Shares Purchased	Shares Sold	Shares Held at 03/31/20		Value at 03/31/20		Income		Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds,T-Fund, Institutional Class(b)	1,676,500	55,544,493	—	57,220,993	$	57,220,993	$	38,607	$	3		$	—

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

^(b)  Represents net shares purchased (sold).

60 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock U.S. Government Bond Portfolio

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		334		06/19/20	$	46,322	$	796,328
U.S. Treasury 10 Year Ultra Note		17		06/19/20		2,653		25,487
U.S. Treasury Long Bond		62		06/19/20		11,102		216,453
U.S. Treasury Ultra Bond		81		06/19/20		17,972		846,358
U.S. Treasury 2 Year Note		416		06/30/20		91,679		90,048
								1,974,674
Short Contracts
U.S. Treasury 5 Year Note		127		06/30/20		15,921		(3,281	)
							$	1,971,393

Forward Foreign Currency Exchange Contracts    

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	70,000	BRL	335,916	Citibank NA		04/02/20	$	5,352
AUD	89,000	USD	54,478	Morgan Stanley & Co. International plc		04/03/20		266
AUD	89,500	USD	53,939	State Street Bank and Trust Co.		04/03/20		1,113
USD	117,819	AUD	179,000	Morgan Stanley & Co. International plc		04/03/20		7,716
USD	4,664,766	EUR	4,160,000	UBS AG		04/03/20		76,571
RUB	7,867,962	USD	100,000	Goldman Sachs International		04/13/20		127
USD	70,000	KRW	83,235,600	Barclays Bank plc		04/13/20		1,637
USD	70,000	ZAR	1,132,463	Bank of America NA		04/14/20		6,802
IDR	1,513,156,728	USD	91,429	Deutsche Bank AG		04/15/20		1,535
USD	223,662	IDR	3,267,635,000	Bank of America NA		04/15/20		22,907
USD	111,532	IDR	1,633,945,000	HSBC Bank plc		04/15/20		11,147
USD	44,568	IDR	652,704,000	JPMorgan Chase Bank NA		04/15/20		4,468
USD	50,000	ZAR	889,825	BNP Paribas SA		04/17/20		367
AUD	130,000	USD	78,758	Goldman Sachs International		04/27/20		1,217
USD	80,000	CAD	112,296	Goldman Sachs International		04/27/20		180
USD	29,254	COP	118,753,000	Natwest Markets plc		06/16/20		180
AUD	3,577,996	CAD	3,044,692	Citibank NA		06/17/20		36,191
AUD	3,055,000	CAD	2,599,102	JPMorgan Chase Bank NA		06/17/20		31,290
CNH	15,685,983	USD	2,209,200	JPMorgan Chase Bank NA		06/17/20		384
CNY	13,576,152	USD	1,906,000	HSBC Bank plc		06/17/20		6,386
GBP	5,998,682	EUR	6,584,000	Morgan Stanley & Co. International plc		06/17/20		178,120
USD	8,046,000	CNY	56,465,219	Citibank NA		06/17/20		92,107
USD	516,334	IDR	7,448,371,613	JPMorgan Chase Bank NA		06/17/20		65,379
USD	1,034,525	RUB	69,990,784	Citibank NA		06/17/20		148,823
USD	509,726	IDR	7,448,371,613	JPMorgan Chase Bank NA		07/15/20		61,155
								761,420
BRL	325,766	USD	70,000	Citibank NA		04/02/20		(7,307	)
EUR	1,722,000	USD	1,927,153	Barclays Bank plc		04/03/20		(27,905	)
JPY	5,210,901	USD	50,000	HSBC Bank plc		04/13/20		(1,516	)
KRW	84,182,000	USD	70,000	BNP Paribas SA		04/13/20		(860	)
MXN	1,055,348	USD	50,000	Barclays Bank plc		04/13/20		(5,606	)
MXN	2,102,981	USD	90,000	UBS AG		04/13/20		(1,536	)
RUB	10,853,766	USD	140,000	Morgan Stanley & Co. International plc		04/13/20		(1,876	)
USD	40,000	JPY	4,451,584	UBS AG		04/13/20		(1,419	)
USD	60,000	KRW	73,740,600	Deutsche Bank AG		04/13/20		(564	)
USD	80,000	KRW	98,006,400	JPMorgan Chase Bank NA		04/13/20		(494	)
USD	100,000	RUB	8,047,000	Citibank NA		04/13/20		(2,405	)
ZAR	1,130,550	USD	70,000	HSBC Bank plc		04/14/20		(6,910	)
IDR	1,310,315,000	USD	83,829	Bank of America NA		04/15/20		(3,327	)
IDR	454,490,000	USD	28,090	Citibank NA		04/15/20		(166	)

SCHEDULES OF INVESTMENTS 61

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock U.S. Government Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
IDR	837,070,000	USD	54,532	Deutsche Bank AG		04/15/20	$	(3,105	)
IDR	3,688,602,521	USD	234,076	Goldman Sachs International		04/15/20		(7,460	)
IDR	2,586,775,000	USD	178,954	HSBC Bank plc		04/15/20		(20,030	)
IDR	1,034,635,000	USD	71,305	JPMorgan Chase Bank NA		04/15/20		(7,740	)
USD	98,992	EUR	90,000	Bank of America NA		04/16/20		(320	)
USD	99,172	EUR	90,000	JPMorgan Chase Bank NA		04/16/20		(140	)
ZAR	1,774,877	USD	110,000	Goldman Sachs International		04/17/20		(11,000	)
USD	120,000	COP	488,100,000	Natwest Markets plc		04/20/20		(5	)
CNY	567,062	USD	80,000	Natwest Markets plc		04/24/20		(68	)
KZT	4,578,000	USD	12,000	Citibank NA		04/24/20		(1,913	)
KZT	3,840,000	USD	10,000	Goldman Sachs International		04/24/20		(1,539	)
USD	78,718	AUD	130,000	JPMorgan Chase Bank NA		04/27/20		(1,257	)
USD	54,487	AUD	89,000	Morgan Stanley & Co. International plc		05/05/20		(267	)
USD	53,942	AUD	89,500	State Street Bank and Trust Co.		05/05/20		(1,119	)
CNY	10,453,198	USD	1,472,800	Bank of America NA		06/17/20		(325	)
CNY	17,390,596	USD	2,458,000	HSBC Bank plc		06/17/20		(8,298	)
IDR	1,286,931,000	USD	78,304	HSBC Bank plc		06/17/20		(388	)
JPY	5,259,260	USD	50,000	Deutsche Bank AG		06/17/20		(927	)
RUB	4,310,000	USD	56,473	Bank of America NA		06/17/20		(1,932	)
RUB	13,319,258	USD	177,120	Credit Suisse International		06/17/20		(8,571	)
RUB	2,304,457	USD	30,114	Goldman Sachs International		06/17/20		(952	)
RUB	15,190,000	USD	203,044	HSBC Bank plc		06/17/20		(10,820	)
RUB	6,195,000	USD	84,200	Societe Generale SA		06/17/20		(5,805	)
KZT	3,892,500	USD	10,000	Goldman Sachs International		07/24/20		(1,743	)
KZT	4,896,870	USD	12,540	Natwest Markets plc		07/24/20		(2,153	)
								(159,768	)
Net Unrealized Appreciation							$	601,652

OTC Interest Rate Swaptions Purchased    

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Put

10-Year Interest Rate Swap(a)

2.11

%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

08/17/20

2.11

%

USD 19,200

$

6,115

^(a)  Forward settling swaption.    

Interest Rate Caps Purchased    

Description	Exercise Rate			Counterparty	Expiration Date	Notional Amount (000)			Value		Premiums Paid (Received)		Unrealized Appreciation (Depreciation)
2Y-10Y CMS Index Cap		0.50	%	Morgan Stanley & Co. International plc	05/06/20		USD	73,907	$	11,603	$	33,258	$	(21,655	)

Exchange-Traded Options Written    

Description	Number of Contracts	Expiration Date		Exercise Price			Notional Amount (000)			Value
Call
U.S. Treasury 10 Year Note	42		05/22/20		USD	133.50		USD	4,200	$	(228,375	)
U.S. Treasury 10 Year Note	75		05/22/20		USD	136.50		USD	7,500		(208,594	)
U.S. Treasury 10 Year Note	128		05/22/20		USD	132.50		USD	12,800		(818,000	)
										$	(1,254,969	)

62 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock U.S. Government Bond Portfolio

OTC Interest Rate Swaptions Written    

Description

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Rate

Frequency

Rate

Frequency

Call

10-Year Interest Rate Swap(a)

3 month LIBOR

Quarterly

0.35%

Semi-Annual

Deutsche Bank AG

09/30/20

0.35

%

USD

6,200

$

(62,758

)

Put

2-Year Interest Rate Swap(a)

0.60%

Semi-Annual

3 month LIBOR

Quarterly

Deutsche Bank AG

09/25/20

0.60

USD

52,800

(16,769

)

$

(79,527

)

^(a)  Forward settling swaption.    

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
1.37%	Semi-Annual	3 month LIBOR	Quarterly		11/30/20		USD	10,970	$       (75,347)	$	—	$	(75,347	)
28 day MXIBTIIE	Monthly	6.88%	Monthly		12/15/20		MXN	11,647	3,215		—		3,215
28 day MXIBTIIE	Monthly	6.88%	Monthly		12/16/20		MXN	22,534	6,216		—		6,216
28 day MXIBTIIE	Monthly	6.52%	Monthly		12/14/21		MXN	17,680	9,290		—		9,290
28 day MXIBTIIE	Monthly	6.51%	Monthly		12/15/21		MXN	15,064	7,834		—		7,834
28 day MXIBTIIE	Monthly	7.00%	Monthly		08/11/22		MXN	7,262	8,445		—		8,445
7.11%	Monthly	28 day MXIBTIIE	Monthly		10/14/22		MXN	3,205	(4,257)		—		(4,257	)
7.11%	Monthly	28 day MXIBTIIE	Monthly		10/14/22		MXN	4,224	(5,588)		—		(5,588	)
28 day MXIBTIIE	Monthly	6.77%	Monthly		03/09/23		MXN	7,591	7,873		—		7,873
28 day MXIBTIIE	Monthly	6.36%	Monthly		03/23/23		MXN	17,016	9,768		—		9,768
28 day MXIBTIIE	Monthly	8.39%	Monthly		01/18/24		MXN	6,196	21,380		—		21,380
3 month LIBOR	Quarterly	2.61%	Semi-Annual		02/07/24		USD	7,000	585,546		—		585,546
2.71%	Semi-Annual	3 month LIBOR	Quarterly		03/18/24		USD	17,400	(1,576,696)		—		(1,576,696	)
28 day MXIBTIIE	Monthly	6.73%	Monthly		08/09/24		MXN	2,448	2,164		—		2,164
28 day MXIBTIIE	Monthly	6.67%	Monthly		08/12/24		MXN	5,385	4,211		—		4,211
28 day MXIBTIIE	Monthly	6.72%	Monthly		08/13/24		MXN	4,634	3,967		—		3,967
28 day MXIBTIIE	Monthly	6.59%	Monthly		11/08/24		MXN	3,373	1,835		—		1,835
2.85%	Semi-Annual	3 month LIBOR	Quarterly		12/21/28		USD	2,600	(507,724)		—		(507,724	)
3 month LIBOR	Quarterly	1.45%	Semi-Annual		08/19/29		USD	2,800	192,267		—		192,267
2.03%	Semi-Annual	3 month LIBOR	Quarterly		09/09/29		USD	11,200	(1,404,027)		—		(1,404,027	)
3 month LIBOR	Quarterly	1.47%	Semi-Annual		09/09/29		USD	2,500	182,368		—		182,368
1.59%	Semi-Annual	3 month LIBOR	Quarterly		09/12/29		USD	1,700	(143,994)		—		(143,994	)
1.61%	Semi-Annual	3 month LIBOR	Quarterly		10/01/29		USD	4,700	(414,367)		—		(414,367	)
28 day MXIBTIIE	Monthly	7.14%	Monthly		03/15/30		MXN	5,376	2,221		—		2,221
1.66%	Semi-Annual	3 month LIBOR	Quarterly		03/16/30		USD	16,000	(1,514,304)		—		(1,514,304	)
									$  (4,597,704)	$	—	$	(4,597,704	)

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 South Africa		1.00	%	Quarterly		Morgan Stanley & Co. International plc	06/20/25	USD	376	$	53,971	$	52,943	$	1,028
United Mexican States		1.00		Quarterly		Citibank NA	06/20/25	USD	51		3,233		5,210		(1,977	)
										$	57,204	$	58,153	$	(949	)

SCHEDULES OF INVESTMENTS 63

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock U.S. Government 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
1 day BZDIOVER	At Termination	4.53%	At Termination	UBS AG		01/03/22	BRL	5,921	$	9,522		$	—	$	9,522
1 day BZDIOVER	At Termination	5.69%	At Termination	UBS AG		01/03/22	BRL	2,601		14,374			—		14,374
6.31%	Monthly	28 day MXIBTIIE	Monthly	Deutsche Bank AG		08/11/25	MXN	7,502		2,038			—		2,038
1 day BZDIOVER	At Termination	7.20%	At Termination	Citibank NA		01/04/27	BRL	1,551		(5,752	)		—		(5,752	)
1 day BZDIOVER	At Termination	7.40%	At Termination	JPMorgan Chase Bank NA		01/04/27	BRL	1,434		2,603			—		2,603
1 day BZDIOVER	At Termination	7.45%	At Termination	JPMorgan Chase Bank NA		01/04/27	BRL	510		1,259			—		1,259
1 day BZDIOVER	At Termination	7.52%	At Termination	JPMorgan Chase Bank NA		01/04/27	BRL	255		864			—		864
1 day BZDIOVER	At Termination	7.55%	At Termination	Citibank NA		01/04/27	BRL	1,021		3,866			—		3,866
									$	28,774		$	��	$	28,774

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		0.01	%
28 day MXIBTIIE	Mexico Interbank TIIE28-Day		6.71
3 month LIBOR	London Interbank Offered Rate		1.45

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)	$            —	$            —	$	1,048,600	$	(5,646,304	)	$	—
OTC Swaps	58,153	—		35,554		(7,729	)		—
Options Written	N/A	N/A		46,433		(1,035,716	)		(1,334,496	)

^(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.

64 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 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
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	1,974,674	$	—	$	1,974,674
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		761,420		—		—		761,420
Options purchased
Investments at value — unaffiliated(b)		—		—		—		—		17,718		—		17,718
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		—		—		—		1,048,600		—		1,048,600
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		59,181		—		—		34,526		—		93,707
	$	—	$	59,181	$	—	$	761,420	$	3,075,518	$	—	$	3,896,119
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		3,281		—		3,281
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		159,768		—		—		159,768
Options written
Options written at value		—		—		—		—		1,334,496		—		1,334,496
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		—		—		—		5,646,304		—		5,646,304
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		1,977		—		—		5,752		—		7,729
	$	—	$	1,977	$	—	$	159,768	$	6,989,833	$	—	$	7,151,578

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

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

For the six months ended March 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:    

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—		$	3,910,675		$	—		$	3,910,675
Forward foreign currency exchange contracts		—		—			—		(230,424	)		—			—			(230,424	)
Options purchased(a)		—		—			—		(92,770	)		(205,760	)		—			(298,530	)
Options written		—		—			—		—			443,322			—			443,322
Swaps		—		43,859			—		—			(7,376,615	)		272,879			(7,059,877	)
	$	—	$	43,859		$	—	$	(323,194	)	$	(3,228,378	)	$	272,879		$	(3,234,834	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			—		—			1,815,234			—			1,815,234
Forward foreign currency exchange contracts		—		—			—		240,978			—			—			240,978
Options purchased(b)		—		—			—		9,144			38,938			—			48,082
Options written		—		—			—		—			(960,501	)		—			(960,501	)
Swaps		—		(2,764	)		—		—			1,434,918			(7,080	)		1,425,074
	$	—	$	(2,764	)	$	—	$	250,122		$	2,328,589		$	(7,080	)	$	2,568,867

^(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 65

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock U.S. Government Bond Portfolio

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	160,946,146
Average notional value of contracts — short		21,809,382
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		26,443,790
Average amounts sold — in USD		14,065,249
Options:
Average value of option contracts purchased		13,927
Average value of option contracts written		636,422
Average notional value of swaption contracts purchased		65,750,500
Average notional value of swaption contracts written		59,011,000
Credit default swaps:
Average notional value — buy protection		895,750
Interest rate swaps:
Average notional value — pays fixed rate		89,775,309
Average notional value — receives fixed rate		29,830,224
Inflation swaps:
Average notional value — pays fixed rate		—	(a)
Average notional value — receives fixed rate		—	(a)

^(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	$	5,641		$	466,496
Forward foreign currency exchange contracts		761,420			159,768
Options(a)		17,718			1,334,496
Swaps — Centrally cleared		145,347			—
Swaps — OTC(b)		93,707			7,729
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	1,023,833		$	1,968,489
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(150,988	)		(1,721,465	)
Total derivative assets and liabilities subject to an MNA	$	872,845		$	247,024

^(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)
Bank of America NA	$	29,709	$	(5,904	)	$	—	$	—		$	23,805
Barclays Bank plc		1,637		(1,637	)		—		—			—
BNP Paribas SA		367		(367	)		—		—			—
Citibank NA		297,664		(19,520	)		—		—			278,144
Deutsche Bank AG		3,573		(3,573	)		—		—			—
Goldman Sachs International		1,524		(1,524	)		—		—			—
HSBC Bank plc		17,533		(17,533	)		—		—			—
JPMorgan Chase Bank NA		167,402		(9,631	)		—		(10,000	)		147,771
Morgan Stanley & Co. International plc		251,676		(2,143	)		—		—			249,533
Natwest Markets plc		180		(180	)		—		—			—
State Street Bank and Trust Co.		1,113		(1,113	)		—		—			—
UBS AG		100,467		(2,955	)		—		—			97,512
	$	872,845	$	(66,080	)	$	—	$	(10,000	)	$	796,765

66 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock U.S. Government Bond Portfolio

Counterparty		Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities (c)
Bank of America NA	$	5,904	$	(5,904	)	$	—	$	—	$	—
Barclays Bank plc		33,511		(1,637	)		—		—		31,874
BNP Paribas SA		860		(367	)		—		—		493
Citibank NA		19,520		(19,520	)		—		—		—
Credit Suisse International		8,571		—			—		—		8,571
Deutsche Bank AG		84,123		(3,573	)		—		—		80,550
Goldman Sachs International		22,694		(1,524	)		—		—		21,170
HSBC Bank plc		47,962		(17,533	)		—		—		30,429
JPMorgan Chase Bank NA		9,631		(9,631	)		—		—		—
Morgan Stanley & Co. International plc		2,143		(2,143	)		—		—		—
Natwest Markets plc		2,226		(180	)		—		—		2,046
Societe Generale SA		5,805		—			—		—		5,805
State Street Bank and Trust Co.		1,119		(1,113	)		—		—		6
UBS AG		2,955		(2,955	)		—		—		—
	$	247,024	$	(66,080	)	$	—	$	—	$	180,944

^(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(a)	$	—		$	990,572,171		$	—	$	990,572,171
Short-Term Securities		57,220,993			—			—		57,220,993
Options Purchased:
Interest rate contracts		—			17,718			—		17,718
Liabilities:
Investments:
TBA Sale Commitments		—			(149,832,434	)		—		(149,832,434	)
	$	57,220,993		$	840,757,455		$	—	$	897,978,448
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—		$	1,028		$	—	$	1,028
Foreign currency exchange contracts		—			761,420			—		761,420
Interest rate contracts		1,974,674			1,083,126			—		3,057,800
Liabilities:
Credit contracts		—			(1,977	)		—		(1,977	)
Foreign currency exchange contracts		—			(159,768	)		—		(159,768	)
Interest rate contracts		(1,258,250	)		(5,731,583	)		—		(6,989,833	)
	$	716,424		$	(4,047,754	)	$	—	$	(3,331,330	)

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

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 67

Statements of Assets and Liabilities  (unaudited) 

March 31, 2020

	BlackRock Credit Strategies Income Fund		BlackRock GNMA Portfolio		BlackRock U.S. Government Bond Portfolio
ASSETS
Investments at value — unaffiliated(a)	$	971,477,628	$	802,924,866	$	990,589,889
Investments at value — affiliated(b)		127,713,663		16,511,307		57,220,993
Cash		—		—		256,382
Due from broker		—		280,000		—
Cash pledged:
Collateral — OTC derivatives		5,950,000		—		—
Collateral — TBA commitments		—		516,450		—
Futures contracts		6,621,000		2,328,310		3,787,650
Centrally cleared swaps		3,458,000		1,457,000		1,910,560
Foreign currency at value(c)		3,379,001		—		5,796,392
Receivables:
Investments sold		59,627,041		59,703,131		118,052,869
TBA sale commitments		—		77,199,833		148,366,108
Capital shares sold		7,900,072		1,422,905		3,766,107
Dividends — affiliated		78,814		3,806		7,330
Dividends — unaffiliated		11,730		49		68
Interest — unaffiliated		11,687,459		2,337,780		3,215,526
From the Manager		44,058		26,982		58,465
Variation margin on futures contracts		527,670		141,246		5,641
Variation margin on centrally cleared swaps		—		52,888		145,347
Swap premiums paid		21,161		—		58,153
Unrealized appreciation on:
Forward foreign currency exchange contracts		1,722,710		—		761,420
OTC swaps		38,744		—		35,554
Prepaid expenses		155,529		62,060		86,821
Total assets		1,200,414,280		964,968,613		1,334,121,275
LIABILITIES
Bank overdraft		6,170		1,083		—
Cash received:
Collateral — reverse repurchase agreements		—		1,019,000		—
Collateral — OTC derivatives		310,000		—		10,000
Collateral — TBA commitments		—		4,693,515		3,182,000
Options written at value(d)		349,170		1,048,211		1,334,496
TBA sale commitments at value(e)		—		78,666,909		149,832,434
Reverse repurchase agreements at value		—		60,306,784		—
Payables:
Investments purchased		47,887,386		306,659,805		359,192,520
Accounting services fees		113,148		26,183		35,419
Administration fees		42,494		18,197		25,690
Capital shares redeemed		8,670,523		1,167,502		4,121,569
Custodian fees		49,625		22,475		30,854
Income dividend distributions		668,332		301,228		572,014
Investment advisory fees		466,467		106,039		179,590
Trustees’ and Officer’s fees		—		1,937		1,853
Other affiliates		1,314		1,795		1,147
Printing fees		43,284		22,553		33,580
Professional fees		33,388		40,092		57,466
Registration fees		45,481		9,980		10,036
Service and distribution fees		50,736		62,708		113,164
Transfer agent fees		276,278		141,613		320,989
Other accrued expenses		224,432		13,261		20,787
Variation margin on futures contracts		498,336		8,118		466,496
Variation margin on centrally cleared swaps		558,511		—		—
Swap premiums received		97,368		—		—
Unrealized depreciation on:
Forward foreign currency exchange contracts		38,436		—		159,768
OTC swaps		262,487		—		7,729
Unfunded floating rate loan interests		35,644		—		—
Total liabilities		60,729,010		454,338,988		519,709,601
NET ASSETS	$	1,139,685,270	$	510,629,625	$	814,411,674

68 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Assets and Liabilities  (unaudited) (continued)

March 31, 2020

	BlackRock Credit Strategies Income Fund			BlackRock GNMA Portfolio			BlackRock U.S. Government Bond Portfolio
NET ASSETS CONSIST OF
Paid-in capital	$	1,283,275,745		$	572,936,897		$	826,429,755
Accumulated loss		(143,590,475	)		(62,307,272	)		(12,018,081	)
NET ASSETS	$	1,139,685,270		$	510,629,625		$	814,411,674
(a) Investments at cost — unaffiliated	$	1,088,590,015		$	779,764,979		$	947,090,739
(b) Investments at cost — affiliated	$	131,357,409		$	16,511,307		$	57,220,993
(c)  Foreign currency at cost	$	3,367,117		$	—		$	5,734,132
(d) Premiums received	$	93,440		$	252,644		$	345,213
(e) Proceeds from TBA sale commitments	$	—		$	77,199,833		$	148,366,108

See notes to financial statements.

FINANCIAL STATEMENTS 69

Statements of Assets and Liabilities  (unaudited) (continued)

March 31, 2020

	BlackRock Credit Strategies Income Fund		BlackRock GNMA Portfolio		BlackRock U.S. Government Bond Portfolio
NET ASSET VALUE
Institutional
Net assets	$	915,241,819	$	259,545,188	$	359,193,851
Share outstanding(f)		99,739,251		27,250,810		32,582,023
Net asset value	$	9.18	$	9.52	$	11.02
Service
Net assets	$	—	$	5,025,447	$	342,046
Share outstanding(f)		—		528,518		31,060
Net asset value	$	—	$	9.51	$	11.01
Investor A
Net assets	$	99,466,015	$	139,155,841	$	403,250,185
Share outstanding(f)		10,840,106		14,549,071		36,495,944
Net asset value	$	9.18	$	9.56	$	11.05
Investor C
Net assets	$	29,358,269	$	34,955,107	$	29,577,864
Share outstanding(f)		3,198,638		3,670,752		2,681,200
Net asset value	$	9.18	$	9.52	$	11.03
Class K
Net assets	$	95,619,167	$	71,948,042	$	13,968,167
Share outstanding(f)		10,420,672		7,578,905		1,267,029
Net asset value	$	9.18	$	9.49	$	11.02
Class R
Net assets	$	—	$	—	$	8,079,561
Share outstanding(f)		—		—		731,256
Net asset value	$	—	$	—	$	11.05

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

See notes to financial statements.

70 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Operations  (unaudited) 

Six Months Ended March 31, 2020

	BlackRock Credit Strategies Income Fund			BlackRock GNMA Portfolio			BlackRock U.S. Government Bond Portfolio
INVESTMENT INCOME
Dividends — affiliated	$	1,985,530		$	31,059		$	38,607
Dividends — unaffiliated		1,019,077			2,347			1,025
Interest — unaffiliated		29,300,308			7,501,036			9,163,165
Foreign taxes withheld		(15	)		—			(9,198	)
Total investment income		32,304,900			7,534,442			9,193,599
EXPENSES
Investment advisory		3,123,202			851,892			1,273,683
Transfer agent — class specific		558,368			281,534			524,357
Service and distribution — class specific		308,952			345,941			625,428
Administration		258,182			106,438			136,894
Registration		167,093			53,768			68,901
Accounting services		165,373			39,613			50,058
Administration — class specific		127,672			50,107			65,312
Professional		69,712			41,803			35,230
Custodian		51,647			23,556			35,332
Printing		15,563			22,253			15,929
Trustees and Officer		6,594			2,272			3,598
Miscellaneous		174,189			21,689			22,620
Total expenses excluding interest expense		5,026,547			1,840,866			2,857,342
Interest expense		—			290,758			840,282
Total expenses		5,026,547			2,131,624			3,697,624
Less:
Fees waived and/or reimbursed by the Manager		(379,172	)		(236,022	)		(334,701	)
Transfer agent fees waived and/or reimbursed — class specific		(276,385	)		(170,803	)		(369,546	)
Administration fees waived — class specific		(127,672	)		(50,107	)		(64,911	)
Total expenses after fees waived and/or reimbursed		4,243,318			1,674,692			2,928,466
Net investment income		28,061,582			5,859,750			6,265,133
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		(1,590,550	)		—			—
Investments — unaffiliated		(25,251,584	)		1,273,700			2,489,515
Capital gain distributions from investment companies — affiliated		303			6			3
Forward foreign currency exchange contracts		(174,872	)		—			(230,424	)
Foreign currency transactions		(986,792	)		—			(210,986	)
Futures contracts		12,574,120			(2,776,826	)		3,910,675
Options written		(1,306,781	)		312,511			443,322
Swaps		(9,723,895	)		(1,631,487	)		(7,059,877	)
Unfunded floating rate loan interests		(1,929	)		—			—
		(26,461,980	)		(2,822,096	)		(657,772	)
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		(3,915,901	)		—			—
Investments — unaffiliated		(124,614,926	)		12,141,757			24,315,477
Forward foreign currency exchange contracts		1,106,653			—			240,978
Foreign currency translations		12,741			—			48,556
Futures contracts		4,095,143			(1,645,093	)		1,815,234
Options written		(1,003,955	)		(773,934	)		(960,501	)
Swaps		(1,414,458	)		(1,044,431	)		1,425,074
Unfunded floating rate loan interests		(36,118	)		—			—
		(125,770,821	)		8,678,299			26,884,818
Net realized and unrealized gain (loss)		(152,232,801	)		5,856,203			26,227,046
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	(124,171,219	)	$	11,715,953		$	32,492,179

See notes to financial statements.

FINANCIAL STATEMENTS 71

Statements of Changes in Net Assets

	BlackRock Credit Strategies Income Fund						BlackRock GNMA Portfolio
	Six Months Ended 03/31/20 (unaudited)			Year Ended 09/30/19			Six Months Ended 03/31/20 (unaudited)			Year Ended 09/30/19
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	28,061,582		$	37,646,638		$	5,859,750		$	12,682,621
Net realized gain (loss)		(26,461,980	)		11,206,283			(2,822,096	)		(3,470,345	)
Net change in unrealized appreciation (depreciation)		(125,770,821	)		12,468,193			8,678,299			23,265,410
Net increase (decrease) in net assets resulting from operations		(124,171,219	)		61,321,114			11,715,953			32,477,686
DISTRIBUTIONS TO SHAREHOLDERS(a)
From net investment income and net realized gain:
Institutional		(26,946,284	)		(33,063,857	)		(4,539,642	)		(9,407,704	)
Service		—			—			(93,058	)		(252,843	)
Investor A		(2,818,125	)		(3,996,498	)		(2,160,780	)		(4,412,535	)
Investor C		(703,856	)		(1,240,495	)		(401,067	)		(950,086	)
Class K		(2,490,298	)		(2,349,783	)		(999,349	)		(1,314,642	)
From return of capital:
Institutional		—			—			—			(35,973	)
Service		—			—			—			(967	)
Investor A		—			—			—			(16,873	)
Investor C		—			—			—			(3,633	)
Class K		—			—			—			(5,027	)
Decrease in net assets resulting from distributions to shareholders		(32,958,563	)		(40,650,633	)		(8,193,896	)		(16,400,283	)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		162,280,072			535,223,240			18,403,999			30,377,670
NET ASSETS
Total increase in net assets		5,150,290			555,893,721			21,926,056			46,455,073
Beginning of period		1,134,534,980			578,641,259			488,703,569			442,248,496
End of period	$	1,139,685,270		$	1,134,534,980		$	510,629,625		$	488,703,569

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

See notes to financial statements.

72 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Changes in Net Assets  (continued)

March 31, 2020

	BlackRock U.S. Government Bond Portfolio
	Six Months Ended 03/31/20 (unaudited)			Year Ended 09/30/19
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	6,265,133		$	13,953,283
Net realized gain (loss)		(657,772	)		6,746,627
Net change in unrealized appreciation (depreciation)		26,884,818			29,198,303
Net increase in net assets resulting from operations		32,492,179			49,898,213
DISTRIBUTIONS TO SHAREHOLDERS(a)
From net investment income:
Institutional		(2,646,880	)		(5,086,218	)
Service		(69,337	)		(64,915	)
Investor A		(3,448,561	)		(8,976,963	)
Investor C		(142,540	)		(549,706	)
Investor C1		(50,589	)		(257,385	)
Class K		(96,363	)		(74,873	)
Class R		(91,900	)		(391,511	)
From return of capital:
Institutional		—			(19,062	)
Service		—			(243	)
Investor A		—			(33,644	)
Investor C		—			(2,060	)
Investor C1		—			(965	)
Class K		—			(281	)
Class R		—			(1,467	)
Decrease in net assets resulting from distributions to shareholders		(6,546,170	)		(15,459,293	)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		152,940,549			7,461,750
NET ASSETS
Total increase in net assets		178,886,558			41,900,670
Beginning of period		635,525,116			593,624,446
End of period	$	814,411,674		$	635,525,116

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

See notes to financial statements.

FINANCIAL STATEMENTS 73

Financial Highlights  

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund
	Institutional
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	10.32		$	10.13		$	10.31		$	10.14		$	9.99		$	10.31
Net investment income(a)		0.23			0.47			0.43			0.41			0.43			0.42
Net realized and unrealized gain (loss)		(1.10	)		0.24			(0.18	)		0.20			0.16			(0.28	)
Net increase (decrease) from investment operations		(0.87	)		0.71			0.25			0.61			0.59			0.14
Distributions(b)
From net investment income		(0.26	)		(0.52	)		(0.43	)		(0.44	)		(0.44	)		(0.45	)
From net realized gain		(0.01	)		—			—			—			—			(0.01	)
Total distributions		(0.27	)		(0.52	)		(0.43	)		(0.44	)		(0.44	)		(0.46	)
Net asset value, end of period	$	9.18		$	10.32		$	10.13		$	10.31		$	10.14		$	9.99
Total Return(c)
Based on net asset value		(8.68	)%(d)		7.22	%		2.52	%		6.12	%		6.09	%		1.36	%
Ratios to Average Net Assets(e)
Total expenses(f)		0.75	%(g)		0.78	%		0.83	%		0.90	%		0.80	%		0.80	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.62	%(g)		0.62	%		0.63	%		0.63	%		0.68	%		0.70	%
Net investment income		4.45	%(g)		4.64	%		4.22	%		4.03	%		4.28	%		4.13	%
Supplemental Data
Net assets, end of period (000)	$	915,242		$	919,409		$	457,518		$	337,106		$	218,738		$	211,705
Portfolio turnover rate		43	%		77	%		100	%		126	%		101	%		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 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.04	%		0.04	%		0.01	%		0.02	%		0.01	%		0.01	%

^(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 03/31/20 (unaudited)		Year Ended September 30,
			2019		2018			2017			2016			2015
Expense ratios		N/A		N/A		0.82	%		0.90	%		0.80	%		N/A

^(g)  Annualized.

See notes to financial statements.

74 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund (continued)
	Investor A
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	10.32		$	10.13		$	10.30		$	10.13		$	9.99		$	10.31
Net investment income(a)		0.21			0.44			0.40			0.39			0.40			0.40
Net realized and unrealized gain (loss)		(1.10	)		0.24			(0.16	)		0.19			0.16			(0.28	)
Net increase (decrease) from investment operations		(0.89	)		0.68			0.24			0.58			0.56			0.12
Distributions(b)
From net investment income		(0.24	)		(0.49	)		(0.41	)		(0.41	)		(0.42	)		(0.43	)
From net realized gain		(0.01	)		—			—			—			—			(0.01	)
Total distributions		(0.25	)		(0.49	)		(0.41	)		(0.41	)		(0.42	)		(0.44	)
Net asset value, end of period	$	9.18		$	10.32		$	10.13		$	10.30		$	10.13		$	9.99
Total Return(c)
Based on net asset value		(8.80	)%(d)		6.96	%		2.36	%		5.86	%		5.72	%		1.12	%
Ratios to Average Net Assets(e)
Total expenses		0.99	%(f)		1.04	%		1.12	%(g)		1.17	%		1.10	%		1.10	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.87	%(f)		0.87	%		0.88	%		0.88	%		0.93	%		0.95	%
Net investment income		4.20	%(f)		4.40	%		3.94	%		3.81	%		4.04	%		3.90	%
Supplemental Data
Net assets, end of period (000)	$	99,466		$	102,857		$	75,462		$	109,702		$	120,167		$	108,127
Portfolio turnover rate		43	%		77	%		100	%		126	%		101	%		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 charge 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 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.04	%		0.04	%		0.01	%		0.02	%		0.01	%		0.01	%

^(f) Annualized.

^(g) 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, 2019, the expense ratio would have been 1.11%.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 75

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund (continued)
	Investor C
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	10.32		$	10.13		$	10.31		$	10.14		$	9.99		$	10.31
Net investment income(a)		0.18			0.37			0.33			0.31			0.33			0.32
Net realized and unrealized gain (loss)		(1.10	)		0.23			(0.18	)		0.19			0.16			(0.28	)
Net increase (decrease) from investment operations		(0.92	)		0.60			0.15			0.50			0.49			0.04
Distributions(b)
From net investment income		(0.21	)		(0.41	)		(0.33	)		(0.33	)		(0.34	)		(0.35	)
From net realized gain		(0.01	)		—			—			—			—			(0.01	)
Total distributions		(0.22	)		(0.41	)		(0.33	)		(0.33	)		(0.34	)		(0.36	)
Net asset value, end of period	$	9.18		$	10.32		$	10.13		$	10.31		$	10.14		$	9.99
Total Return(c)
Based on net asset value		(9.14	)%(d)		6.16	%		1.50	%		5.07	%		5.04	%		0.36	%
Ratios to Average Net Assets(e)
Total expenses		1.75	%(f)		1.79	%		1.84	%(g)		1.90	%		1.82	%		1.83	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.62	%(f)		1.62	%		1.63	%		1.63	%		1.68	%		1.70	%
Net investment income		3.45	%(f)		3.66	%		3.21	%		3.06	%		3.28	%		3.15	%
Supplemental Data
Net assets, end of period (000)	$	29,358		$	32,197		$	29,812		$	30,536		$	29,321		$	24,678
Portfolio turnover rate		43	%		77	%		100	%		126	%		101	%		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 charge 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 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.04	%		0.04	%		0.01	%		0.02	%		0.01	%		0.01	%

^(f) Annualized.

^(g) 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, 2019, the expense ratio would have been 1.83%.

See notes to financial statements.

76 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund (continued)
	Class K
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,									Period from 08/01/16(a) to 09/30/16
				2019			2018			2017
Net asset value, beginning of period	$	10.32		$	10.13		$	10.31		$	10.14		$	10.08
Net investment income(b)		0.23			0.47			0.44			0.42			0.07
Net realized and unrealized gain (loss)		(1.10	)		0.24			(0.18	)		0.19			0.06
Net increase (decrease) from investment operations		(0.87	)		0.71			0.26			0.61			0.13
Distributions(c)
From net investment income		(0.26	)		(0.52	)		(0.44	)		(0.44	)		(0.07	)
From net realized gain		(0.01	)		—			—			—			—
Total distributions		(0.27	)		(0.52	)		(0.44	)		(0.44	)		(0.07	)
Net asset value, end of period	$	9.18		$	10.32		$	10.13		$	10.31		$	10.14
Total Return(d)
Based on net asset value		(8.66	)%(e)		7.27	%		2.57	%		6.17	%		1.32	%(e)
Ratios to Average Net Assets(f)
Total expenses		0.66	%(g)		0.69	%		0.74	%(h)		0.84	%		0.76	%(g)
Total expenses after fees waived and/or reimbursed and paid indirectly		0.57	%(g)		0.57	%		0.57	%		0.58	%		0.57	%(g)
Net investment income		4.49	%(g)		4.65	%		4.37	%		4.11	%		4.36	%(g)
Supplemental Data
Net assets, end of period (000)	$	95,619		$	80,072		$	15,849		$	206		$	201
Portfolio turnover rate		43	%		77	%		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 03/31/20 (unaudited)			Year Ended September 30,									Period from 08/01/16(a) to 09/30/16
				2019			2018			2017
Investments in underlying funds		0.04	%		0.04	%		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 ratios.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 77

Financial Highlights  

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio
	Institutional
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.46		$	9.13		$	9.59		$	9.89		$	9.83		$	9.83
Net investment income(a)		0.12			0.27			0.25			0.19			0.19			0.15
Net realized and unrealized gain (loss)		0.10			0.41			(0.38	)		(0.19	)		0.15			0.09
Net increase (decrease) from investment operations		0.22			0.68			(0.13	)		—			0.34			0.24
Distributions(b)
From net investment income		(0.16	)		(0.35	)		(0.33	)		(0.30	)		(0.28	)		(0.24	)
From return of capital		—			(0.00	)(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)
Total distributions		(0.16	)		(0.35	)		(0.33	)		(0.30	)		(0.28	)		(0.24	)
Net asset value, end of period	$	9.52		$	9.46		$	9.13		$	9.59		$	9.89		$	9.83
Total Return(d)
Based on net asset value		2.36	%(e)		7.55	%		(1.36	)%		0.01	%		3.54	%		2.45	%
Ratios to Average Net Assets(f)
Total expenses		0.72	%(g)		1.14	%		1.06	%		0.74	%		0.66	%		0.82	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.54	%(g)		0.95	%		0.84	%		0.52	%		0.57	%		0.55	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.42	%(g)		0.42	%		0.42	%		0.43	%		0.55	%		0.55	%
Net investment income		2.48	%(g)		2.92	%		2.69	%		1.93	%		1.88	%		1.49	%
Supplemental Data
Net assets, end of period (000)	$	259,545		$	264,811		$	249,030		$	316,891		$	457,730		$	420,167
Portfolio turnover rate(h)		642	%		1,482	%		1,450	%		1,198	%		1,139	%		1,164	%

^(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 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.04	%		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%

^(g) Annualized.

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		462	%		947	%		823	%		423	%		502	%		429	%

See notes to financial statements.

78 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Service
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.44		$	9.12		$	9.57		$	9.87		$	9.82		$	9.82
Net investment income(a)		0.10			0.25			0.22			0.16			0.16			0.11
Net realized and unrealized gain (loss)		0.12			0.39			(0.36	)		(0.19	)		0.14			0.09
Net increase (decrease) from investment operations		0.22			0.64			(0.14	)		(0.03	)		0.30			0.20
Distributions(b)
From net investment income		(0.15	)		(0.32	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)
From return of capital		—			(0.00	)(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)
Total distributions		(0.15	)		(0.32	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)
Net asset value, end of period	$	9.51		$	9.44		$	9.12		$	9.57		$	9.87		$	9.82
Total Return(d)
Based on net asset value		2.34	%(e)		7.18	%		(1.51	)%		(0.25	)%		3.08	%		2.09	%
Ratios to Average Net Assets(f)
Total expenses		0.98	%(g)		1.43	%		1.32	%		1.05	%		0.98	%(h)		1.16	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.79	%(g)		1.20	%		1.09	%		0.79	%		0.92	%		0.90	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.67	%(g)		0.67	%		0.67	%		0.68	%		0.90	%		0.90	%
Net investment income		2.22	%(g)		2.70	%		2.41	%		1.68	%		1.60	%		1.15	%
Supplemental Data
Net assets, end of period (000)	$	5,025		$	6,638		$	7,592		$	9,347		$	12,129		$	28,828
Portfolio turnover rate(i)		642	%		1,482	%		1,450	%		1,198	%		1,139	%		1,164	%

^(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 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.00	%		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%

^(g) Annualized.

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

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		462	%		947	%		823	%		423	%		502	%		429	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 79

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Investor A
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.50		$	9.17		$	9.63		$	9.93		$	9.87		$	9.87
Net investment income(a)		0.11			0.25			0.23			0.16			0.15			0.11
Net realized and unrealized gain (loss)		0.10			0.40			(0.38	)		(0.19	)		0.16			0.09
Net increase (decrease) from investment operations		0.21			0.65			(0.15	)		(0.03	)		0.31			0.20
Distributions(b)
From net investment income		(0.15	)		(0.32	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)
From return of capital		—			(0.00	)(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)
Total distributions		(0.15	)		(0.32	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)
Net asset value, end of period	$	9.56		$	9.50		$	9.17		$	9.63		$	9.93		$	9.87
Total Return(d)
Based on net asset value		2.23	%(e)		7.27	%		(1.58	)%		(0.23	)%		3.19	%		2.08	%
Ratios to Average Net Assets(f)
Total expenses		1.00	%(g)		1.43	%		1.33	%		1.01	%(h)		0.92	%		1.07	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.79	%(g)		1.20	%		1.09	%		0.78	%		0.91	%		0.91	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.67	%(g)		0.67	%		0.67	%		0.68	%		0.89	%		0.91	%
Net investment income		2.23	%(g)		2.67	%		2.44	%		1.68	%		1.51	%		1.14	%
Supplemental Data
Net assets, end of period (000)	$	139,156		$	137,065		$	120,582		$	172,685		$	256,577		$	186,427
Portfolio turnover rate(i)		642	%		1,482	%		1,450	%		1,198	%		1,139	%		1,164	%

^(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 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.00	%		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%

^(g) Annualized.

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

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		462	%		947	%		823	%		423	%		502	%		429	%

See notes to financial statements.

80 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Investor C
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.46			9.13		$	9.58		$	9.88		$	9.83		$	9.83
Net investment income(a)		0.07			0.18			0.16			0.09			0.08			0.04
Net realized and unrealized gain (loss)		0.10			0.40			(0.37	)		(0.19	)		0.14			0.09
Net increase (decrease) from investment operations		0.17			0.58			(0.21	)		(0.10	)		0.22			0.13
Distributions(b)
From net investment income		(0.11	)		(0.25	)		(0.24	)		(0.20	)		(0.17	)		(0.13	)
From return of capital		—			(0.00	)(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)
Total distributions		(0.11	)		(0.25	)		(0.24	)		(0.20	)		(0.17	)		(0.13	)
Net asset value, end of period	$	9.52		$	9.46		$	9.13		$	9.58		$	9.88		$	9.83
Total Return(d)
Based on net asset value		1.85	%(e)		6.49	%		(2.24	)%		(0.99	)%		2.31	%		1.32	%
Ratios to Average Net Assets(f)
Total expenses		1.72	%(g)		2.17	%		2.07	%		1.76	%(h)		1.68	%		1.82	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.54	%(g)		1.95	%		1.84	%		1.53	%		1.67	%		1.66	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.42	%(g)		1.42	%		1.42	%		1.43	%		1.65	%		1.66	%
Net investment income		1.47	%(g)		1.96	%		1.70	%		0.93	%		0.79	%		0.40	%
Supplemental Data
Net assets, end of period (000)	$	34,955		$	34,257		$	44,241		$	64,370		$	96,578		$	100,335
Portfolio turnover rate(i)		642	%		1,482	%		1,450	%		1,198	%		1,139	%		1,164	%

^(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 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.00	%		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%

^(g)  Annualized.

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

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		462	%		947	%		823	%		423	%		502	%		429	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 81

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Class K
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.43		$	9.10		$	9.55		$	9.85		$	9.80		$	9.79
Net investment income(a)		0.12			0.27			0.25			0.19			0.19			0.15
Net realized and unrealized gain (loss)		0.10			0.41			(0.37	)		(0.19	)		0.15			0.10
Net increase (decrease) from investment operations		0.22			0.68			(0.12	)		—			0.34			0.25
Distributions(b)
From net investment income		(0.16	)		(0.35	)		(0.33	)		(0.30	)		(0.29	)		(0.24	)
From return of capital		—			(0.00	)(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)
Total distributions		(0.16	)		(0.35	)		(0.33	)		(0.30	)		(0.29	)		(0.24	)
Net asset value, end of period	$	9.49		$	9.43		$	9.10		$	9.55		$	9.85		$	9.80
Total Return(d)
Based on net asset value		2.38	%(e)		7.62	%		(1.22	)%		0.04	%		3.47	%		2.58	%
Ratios to Average Net Assets(f)
Total expenses		0.60	%(g)		1.03	%		0.94	%		0.66	%		0.56	%		0.70	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.49	%(g)		0.90	%		0.79	%		0.50	%		0.54	%		0.52	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.37	%(g)		0.37	%		0.37	%		0.38	%		0.52	%		0.52	%
Net investment income		2.52	%(g)		2.93	%		2.73	%		2.00	%		1.90	%		1.49	%
Supplemental Data
Net assets, end of period (000)	$	71,948		$	45,934		$	20,802		$	21,025		$	19,209		$	17,253
Portfolio turnover rate(h)		642	%		1,482	%		1,450	%		1,198	%		1,139	%		1,164	%

^(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 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.00	%		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%

^(g)  Annualized.

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		462	%		947	%		823	%		423	%		502	%		429	%

See notes to financial statements.

82 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio
	Institutional
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	10.62		$	10.03		$	10.45		$	10.76		$	10.64		$	10.59
Net investment income(a)		0.11			0.26			0.23			0.20			0.18			0.18
Net realized and unrealized gain (loss)		0.41			0.62			(0.40	)		(0.26	)		0.20			0.12
Net increase (decrease) from investment operations		0.52			0.88			(0.17	)		(0.06	)		0.38			0.30
Distributions(b)
From net investment income		(0.12	)		(0.29	)		(0.25	)		(0.24	)		(0.26	)		(0.25	)
From return of capital		—			(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.12	)		(0.29	)		(0.25	)		(0.25	)		(0.26	)		(0.25	)
Net asset value, end of period	$	11.02		$	10.62		$	10.03		$	10.45		$	10.76		$	10.64
Total Return(d)
Based on net asset value		4.91	%(e)		8.86	%		(1.68	)%		(0.55	)%		3.67	%		2.80	%
Ratios to Average Net Assets
Total expenses		0.93	%(f)		1.20	%		1.04	%		0.90	%		0.92	%		0.92	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.71	%(f)		0.96	%		0.76	%		0.58	%		0.73	%		0.65	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.45	%(f)		0.45	%		0.45	%		0.46	%		0.62	%		0.62	%
Net investment income		2.10	%(f)		2.51	%		2.21	%		1.81	%		1.70	%		1.71	%
Supplemental Data
Net assets, end of period (000)	$	359,194		$	217,815		$	166,465		$	165,709		$	156,865		$	152,632
Portfolio turnover rate(g)		354	%		837	%		892	%		982	%		929	%		1,090	%

^(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)  Annualized.

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		239	%		571	%		590	%		658	%		619	%		741	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 83

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio
	Service
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	10.62		$	10.03		$	10.45		$	10.75		$	10.63		$	10.58
Net investment income(a)		0.10			0.21			0.20			0.17			0.16			0.16
Net realized and unrealized gain (loss)		0.39			0.64			(0.40	)		(0.25	)		0.20			0.11
Net increase (decrease) from investment operations		0.49			0.85			(0.20	)		(0.08	)		0.36			0.27
Distributions(b)
From net investment income		(0.10	)		(0.26	)		(0.22	)		(0.21	)		(0.24	)		(0.22	)
From return of capital		—			(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.10	)		(0.26	)		(0.22	)		(0.22	)		(0.24	)		(0.22	)
Net asset value, end of period	$	11.01		$	10.62		$	10.03		$	10.45		$	10.75		$	10.63
Total Return(d)
Based on net asset value		4.68	%(e)		8.60	%		(1.93	)%		(0.70	)%		3.47	%		2.61	%
Ratios to Average Net Assets
Total expenses		1.21	%(f)		1.48	%		1.28	%		1.18	%		1.21	%		1.14	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.96	%(f)		1.21	%		1.01	%		0.82	%		0.92	%		0.84	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.70	%(f)		0.70	%		0.70	%		0.70	%		0.81	%		0.81	%
Net investment income		1.95	%(f)		2.04	%		1.96	%		1.57	%		1.51	%		1.53	%
Supplemental Data
Net assets, end of period (000)	$	342		$	8,040		$	541		$	2,039		$	4,452		$	3,575
Portfolio turnover rate(g)		354	%		837	%		892	%		982	%		929	%		1,090	%

^(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)  Annualized.

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		239	%		571	%		590	%		658	%		619	%		741	%

See notes to financial statements.

84 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio
	Investor A
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	10.65		$	10.06		$	10.47		$	10.79		$	10.66		$	10.61
Net investment income(a)		0.10			0.24			0.20			0.15			0.15			0.15
Net realized and unrealized gain (loss)		0.40			0.61			(0.39	)		(0.25	)		0.21			0.12
Net increase (decrease) from investment operations		0.50			0.85			(0.19	)		(0.10	)		0.36			0.27
Distributions(b)
From net investment income		(0.10	)		(0.26	)		(0.22	)		(0.21	)		(0.23	)		(0.22	)
From return of capital		—			(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.10	)		(0.26	)		(0.22	)		(0.22	)		(0.23	)		(0.22	)
Net asset value, end of period	$	11.05		$	10.65		$	10.06		$	10.47		$	10.79		$	10.66
Total Return(d)
Based on net asset value		4.77	%(e)		8.57	%		(1.82	)%		(0.88	)%		3.42	%		2.52	%
Ratios to Average Net Assets
Total expenses		1.19	%(f)		1.47	%		1.31	%		1.16	%(g)		1.19	%		1.10	%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.96	%(f)		1.21	%		1.01	%		0.83	%		1.06	%		0.94	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.70	%(f)		0.70	%		0.70	%		0.71	%		0.95	%		0.90	%
Net investment income		1.87	%(f)		2.28	%		1.96	%		1.56	%		1.40	%		1.43	%
Supplemental Data
Net assets, end of period (000)	$	403,250		$	354,704		$	353,770		$	422,775		$	463,530		$	517,485
Portfolio turnover rate(h)		354	%		837	%		892	%		982	%		929	%		1,090	%

^(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 charge and assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Annualized.

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

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		239	%		571	%		590	%		658	%		619	%		741	%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 85

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio
	Investor C
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	10.63		$	10.04		$	10.46		$	10.77		$	10.65		$	10.60
Net investment income(a)		0.06			0.16			0.12			0.07			0.07			0.07
Net realized and unrealized gain (loss)		0.40			0.61			(0.40	)		(0.24	)		0.20			0.11
Net increase (decrease) from investment operations		0.46			0.77			(0.28	)		(0.17	)		0.27			0.18
Distributions(b)
From net investment income		(0.06	)		(0.18	)		(0.14	)		(0.13	)		(0.15	)		(0.13	)
From return of capital		—			(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.06	)		(0.18	)		(0.14	)		(0.14	)		(0.15	)		(0.13	)
Net asset value, end of period	$	11.03		$	10.63		$	10.04		$	10.46		$	10.77		$	10.65
Total Return(d)
Based on net asset value		4.38	%(e)		7.78	%		(2.66	)%		(1.54	)%		2.53	%		1.68	%
Ratios to Average Net Assets
Total expenses		2.01	%(f)		2.30	%		2.14	%		1.94	%		1.97	%		1.91	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.71	%(f)		1.96	%		1.76	%		1.58	%		1.83	%		1.75	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.45	%(f)		1.45	%		1.45	%		1.46	%		1.72	%		1.72	%
Net investment income		1.11	%(f)		1.55	%		1.21	%		0.80	%		0.62	%		0.62	%
Supplemental Data
Net assets, end of period (000)	$	29,578		$	26,193		$	35,014		$	38,574		$	51,545		$	49,408
Portfolio turnover rate(g)		354	%		837	%		892	%		982	%		929	%		1,090	%

^(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)  Annualized.

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

	Six Months Ended 03/31/20			Year Ended September 30,
	(unaudited)			2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		239	%		571	%		590	%		658	%		619	%		741	%

See notes to financial statements.

86 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio
	Class K
	Six Months Ended 03/31/20 (unaudited)			Year Ended 09/30/2019			Period from 01/25/18 (a) to 09/30/18
Net asset value, beginning of period	$	10.62		$	10.04		$	10.27
Net investment income(b)		0.11			0.25			0.14
Net realized and unrealized gain (loss)		0.41			0.62			(0.20	)
Net increase (decrease) from investment operations		0.52			0.87			(0.06	)
Distributions(c)
From net investment income		(0.12	)		(0.29	)		(0.17	)
From return of capital		—			(0.00	)(d)		—
Total distributions		(0.12	)		(0.29	)		(0.17	)
Net asset value, end of period	$	11.02		$	10.62		$	10.04
Total Return(e)
Based on net asset value		4.93	%(f)		8.81	%		(0.60	)%(f)
Ratios to Average Net Assets
Total expenses		0.78	%(g)		1.06	%		1.03	%(g)(h)
Total expenses after fees waived and/or reimbursed and paid indirectly		0.66	%(g)		0.91	%		0.86	%(g)
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.40	%(g)		0.40	%		0.40	%(g)
Net investment income		2.11	%(g)		2.44	%		2.03	%(g)
Supplemental Data
Net assets, end of period (000)	$	13,968		$	5,031		$	1,517
Portfolio turnover rate(i)		354	%		837	%		892	%(j)

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

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

^(f)  Aggregate total return.

^(g)  Annualized.

^(h)  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%.

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended 09/30/2019			Period from 01/25/18 (a) to 09/30/18
Portfolio turnover rate (excluding MDRs)		239	%		571	%		590	%

^(j)  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
	Class R
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	10.65		$	10.06		$	10.47		$	10.78		$	10.66		$	10.61
Net investment income(a)		0.09			0.21			0.18			0.13			0.12			0.12
Net realized and unrealized gain (loss)		0.40			0.61			(0.40	)		(0.24	)		0.20			0.11
Net increase (decrease) from investment operations		0.49			0.82			(0.22	)		(0.11	)		0.32			0.23
Distributions(b)
From net investment income		(0.09	)		(0.23	)		(0.19	)		(0.19	)		(0.20	)		(0.18	)
From return of capital		—			(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.09	)		(0.23	)		(0.19	)		(0.20	)		(0.20	)		(0.18	)
Net asset value, end of period	$	11.05		$	10.65		$	10.06		$	10.47		$	10.78		$	10.66
Total Return(d)
Based on net asset value		4.64	%(e)		8.30	%		(2.07	)%		(1.04	)%		3.06	%		2.20	%
Ratios to Average Net Assets
Total expenses		1.57	%(f)		2.11	%		1.64	%		1.47	%		1.49	%		1.41	%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.21	%(f)		1.46	%		1.26	%		1.08	%		1.32	%		1.24	%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.95	%(f)		0.95	%		0.95	%		0.96	%		1.21	%		1.21	%
Net investment income		1.67	%(f)		2.06	%		1.72	%		1.30	%		1.12	%		1.13	%
Supplemental Data
Net assets, end of period (000)	$	8,080		$	13,734		$	19,660		$	22,215		$	26,247		$	21,940
Portfolio turnover rate(g)		354	%		837	%		892	%		982	%		929	%		1,090	%

^(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)  Annualized.

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

	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		239	%		571	%		590	%		658	%		619	%		741	%

See notes to financial statements.

88 2020 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. Service, Investor A, Investor C and Class R Shares bear certain expenses related to shareholder servicing of such shares, and Investor C 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. Class R Shares are sold only to certain employer-sponsored retirement plans. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).

On February 24, 2020, U.S. Government Bond’s issued and outstanding Investor C1 Shares converted into Investor A Shares.

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	(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 C Shares made within one year after purchase.

On February 20, 2020, the Board of Trustees of the Trust (the “Board”) approved a change in the name of Credit Strategies Income, effective as of May 1, 2020, to BlackRock Income Fund.

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.

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.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 currenciesare 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 foreigncurrency 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 borrowings to be excluded from treatment as a “senior security.” Furthermore, if required by an

NOTESTO FINANCIAL STATEMENTS 89

Notes to Financial Statements  (unaudited) (continued)

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 atleast annually. The portion of distributions, if any, that exceeds a fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute anon-taxable return of capital. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Deferred Compensation Plan:Under the Deferred Compensation Plan (the “Plan”) approved by the Board,the trusteeswho are not “interested persons” of the Funds, asdefined in the 1940 Act (“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:The Funds have adopted Financial Accounting Standards Board Accounting Standards Update2017-08 to amend the amortization periodfor certain purchased callable debt securities held at a premium. Under the new standard, the Funds have changed the amortization period for the premium on certain purchased callable debt securities withnon-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Funds applied the amendments on a modified retrospective basis beginning with the fiscal period ended March 31, 2020. The adjusted cost basis of securities at September 30, 2019, if applicable, are as follows:

Credit Strategies Income	$	1,164,690,167
GNMA		694,459,531
U.S. Government Bond		739,220,279

This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value of 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’smaximum 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 otherfunds 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 tradingon the NYSE (generally 4:00 p.m., Eastern time). 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. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies:The following methods and inputs are used to establish the fair value of 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

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Notes to Financial Statements  (unaudited) (continued)

exchange-traded andover-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 net asset value (“NAV”) each business day.

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

• Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE based on that day’s prevailing forward exchange rate for the underlying currencies. 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 pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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

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

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

The Private Companies are not subject to the public company disclosure, timing, and reporting standards 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 arecategorized 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

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Notes to Financial Statements  (unaudited) (continued)

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

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

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

As of March 31, 2020, certain investments of the Credit Strategies Income were fair 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 securitiesissued 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 whoseprincipal 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-backedsecurities, 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

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Notes to Financial Statements  (unaudited) (continued)

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. Strippedmortgage-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 mayexperience 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 ofinterest-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 ofthe 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 publiclyoffered 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.

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Notes to Financial Statements  (unaudited) (continued)

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 Appreciation (Depreciation)
BCPE Empire Holdings, Inc., Delayed Draw Term Loan.	$	14,535	$	14,406	$	12,790	$	(1,616	)
Eyecare Partners LLC, Term Loan		139,243		139,069		111,395		(27,674	)
MED ParentCo LP, Delayed Draw Term Loan		36,567		36,590		30,236		(6,354	)

Forward Commitments, When-Issued and Delayed Delivery Securities:Certain funds may purchase securities on a when-issued basis and may purchase or sellsecurities 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 anagreed 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 its 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., sametype, 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 bankor 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, 2020, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate for the Funds were as follows.

	GNMA			U.S. Government Bond
Average Borrowings	$	30,383,277		$	100,816,981
Daily Weighted Average Interest Rate		1.66	%		1.57	%

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

94 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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.

As of period end, the following table is a summary of a 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 ofNon-cash Collateral Pledged Including Accrued Interest	(a)		Cash Collateral Pledged		Net Amount
GNMA
BNP Paribas SA	$	(18,080,474	)	$	18,080,474		$	—	$	—
Credit Suisse Securities (USA) LLC		(42,226,310	)		42,226,310			—		—
	$	(60,306,784	)	$	60,306,784		$	—	$	—

^(a) Collateral with a value of $63,650,485 has been pledged in connection with open reverse repurchase agreements. Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

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 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 thevalue 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, are 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 (foreigncurrency 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, and such value may exceed the amount(s) reflected in the Statements of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the 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, interestrate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.

NOTESTO FINANCIAL STATEMENTS 95

Notes to Financial Statements  (unaudited) (continued)

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, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the 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.

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

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 they 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 tomake 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 a 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).

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.

• 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

96 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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 intoan 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 amountfor each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds 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 Fees
First $1 Billion		0.500	%
$1 Billion — $2 Billion		0.450
$2 Billion — $3 Billion		0.425
Greater than $3 Billion		0.400

	GNMA			U.S. Government Bond
Average Daily Net Assets	Investment Advisory Fees			Investment Advisory Fees
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”), collectively, the“Sub-Advisers”, each an affiliate of the Manager. The Manager pays BIL and BRS for services they provide for that portion of Credit Strategies Income 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.

NOTESTO FINANCIAL STATEMENTS 97

Notes to Financial Statements  (unaudited) (continued)

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 Fees			Distribution Fees
Service		0.25	%		—	%
Investor A		0.25			—
Investor C		0.25			0.75
Investor C1(a)		0.25			0.55
Class R		0.25			0.25

^(a)  On February 24, 2020, Investor C1 Shares converted into Investor A Shares.

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, 2020, 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	$	—	$	141,894	$	167,058	$	—	$	—	$	308,952
GNMA		7,407		171,342		167,192		—		—		345,941
U.S. Government Bond		8,791		442,293		118,894		28,575		26,875		625,428

Administration:The Trust, on behalf of the Funds, entered into an Administration Agreement withtheManager, an indirect, wholly-owned subsidiary of BlackRock, to provideadministrative 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, 2020, 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	$	103,465	$	—	$	11,351	$	3,341	$	—	$	9,515	$	—	$	127,672
GNMA		26,691		593		13,706		3,343		—		5,774		—		50,107
U.S. Government Bond		24,192		703		35,380		2,378		714		870		1,075		65,312

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, 2020, 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		Investor A		Total
GNMA	$	6,914	$	6	$	6,920
U.S. Government Bond		31,837		760		32,597

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, 2020, 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	$	776	$	—	$	560	$	854	$	—	$	—	$	—	$	2,190
GNMA		7,524		—		1,369		211		—		64		—		9,168
U.S. Government Bond		433		16		11,846		620		7		8		49		12,979

98 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

For the six months ended March 31, 2020, 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	$	484,909	$	—	$	51,497	$	16,497	$	—	$	5,465	$	—	$	558,368
GNMA		159,921		3,807		98,255		19,487		—		64		—		281,534
U.S. Government Bond		178,031		6,074		285,183		26,583		12,888		225		15,373		524,357

Other Fees: For the six months ended March 31, 2020, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s InvestorA Shares as follows:

Credit Strategies Income	$	13,061
GNMA		9,844
U.S. Government Bond		8,067

For the six months ended March 31, 2020, affiliates received CDSCs as follows:

	Investor A		Investor C
Credit Strategies Income	$	7,144	$	1,857
GNMA		4,480		3,441
U.S. Government Bond		13,737		4,890

Expense Limitations, Waivers, Reimbursements, and Recoupments:With respect to each Fund, the Manager contractually agreed to waive its investment advisory feesby 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”) through January 31, 2021. 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. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitations described below will be reduced by the amount of the affiliated money market fund waiver. Prior to January 28, 2020, this waiver was voluntary. 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, 2020, the amounts waived were as follows:

Credit Strategies Income	$	49,105
GNMA		1,821
U.S. Government Bond		2,905

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, 2021. 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, 2020, Credit Strategies Income waived $117,324 in investment advisory fees pursuant to this arrangement.

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.

The Manager has agreed not to reduce or discontinue these contractual expense limitations through January 31, 2021, 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. For the six months ended March 31, 2020, amounts included in fees waived and/or reimbursed by the Manager in the Statements of Operations were as follows:

Credit Strategies Income	$	212,743
GNMA		234,201
U.S. Government Bond		331,796

NOTESTO FINANCIAL STATEMENTS 99

Notes to Financial Statements  (unaudited) (continued)

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, 2020, class specific expense waivers and/or reimbursements were as follows:

Administration Fees Waived	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	103,465	$	—	$	11,351	$	3,341	$	—	$	9,515	$	—	$	127,672
GNMA		26,691		593		13,706		3,343		—		5,774		—	$	50,107
U.S. Government Bond		24,038		703		35,160		2,363		714		863		1,070	$	64,911

Transfer Agent Fees Waived and/or Reimbursed	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	238,146	$	—	$	24,266	$	8,508	$	—	$	5,465	$	—	$	276,385
GNMA		93,297		2,335		64,034		11,073		—		64		—	$	170,803
U.S. Government Bond		118,961		4,430		201,020		20,865		11,221		222		12,827	$	369,546

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. Effective December 1, 2019, the repayment arrangement between each Fund and the Manager pursuant to which such Fund may be required to repay amounts waived and/or reimbursed under each Fund’s contractual caps on net expenses was terminated.

The following fund level and class specific waivers and/or reimbursements previously recorded by the Funds, which were subject to recoupment by the Manager, expired on December 1, 2019:

	Credit Strategies Income		U.S. Government GNMA Bond
Fund Level	$	1,232,385	$	1,114,823		$	1,499,708
Institutional		806,062		514,584			506,563
Service		—		18,680			9,596
Investor A		166,722		338,316			1,225,465
Investor C		49,596		99,081			168,880
Investor C1		—		—			121,593
Class K		26,005		13,944			1,439
Class R		—		—	��		146,283

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 jointlending 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, 2020, the Funds did not participate in the Interfund Lending Program.

Trustees and Officers:Certain trustees and/or officers of the Trust are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portionof 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 investmentadviser, common officers, or common trustees. For the six months ended March 31, 2020, 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)
Credit Strategies Income	$	1,194,883	$	181,263	$	(9	)

100 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

7. PURCHASES AND SALES

For the six months ended March 31, 2020, purchases and sales of investments, including paydowns, 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	$	603,339,568	$	4,502,285,122	$	2,857,902,083
U.S. Government Securities		—		5,206,159		50,121,002
	$	603,339,568	$	4,507,491,281	$	2,908,023,085
Sales
Non-U.S. Government Securities	$	468,262,690	$	4,480,761,237	$	2,837,214,141
U.S. Government Securities		23,341,836		2,781,846		5,044,994
	$	491,604,526	$	4,483,543,083	$	2,842,259,135

For the six months ended March 31, 2020, purchases and sales related to mortgage dollar rolls were as follow:

	GNMA		U.S. Government Bond
Purchases	$	1,256,269,730	$	920,826,201
Sales		1,256,790,814		920,571,228

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, 2019. 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, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of September 30, 2019, the Funds hadnon-expiring capital loss carryforwards available to offset future realized capital gains as follows:

GNMA	$	72,661,922
U.S. Government Bond		48,622,814

As of March 31, 2020, 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	$	1,221,545,833		$	796,322,742		$	1,004,510,751
Gross unrealized appreciation	$	14,652,163		$	27,442,713		$	53,861,488
Gross unrealized depreciation		(132,645,700	)		(12,295,728	)		(15,013,800	)
Net unrealized appreciation (depreciation)	$	(117,993,537	)	$	15,146,985		$	38,847,688

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 Credit Strategies Income and 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 2020 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, 2020, the Funds did not borrow under the credit agreement.

NOTESTO FINANCIAL STATEMENTS 101

Notes to Financial Statements  (unaudited) (continued)

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. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. 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 dueto 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 it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause 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.

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

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 tounsettled 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 and 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 inmarket 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.

102 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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 03/31/20							Year Ended 09/30/19
	Shares				Amount			Shares			Amount
Credit Strategies Income
Institutional
Shares sold		44,849,291			$	449,902,850			65,723,825		$	663,085,768
Shares issued in reinvestment of distributions		2,349,575				23,786,761			2,914,388			29,393,206
Shares redeemed		(36,575,050	)			(350,644,198	)		(24,678,714	)		(247,207,703	)
Net increase		10,623,816			$	123,045,413			43,959,499		$	445,271,271
Investor A
Shares sold and automatic conversion of shares		3,244,657			$	33,304,528			6,426,382		$	64,943,941
Shares issued in reinvestment of distributions		260,381				2,635,752			368,175			3,706,033
Shares redeemed		(2,635,632	)			(25,711,019	)		(4,273,098	)		(42,987,376	)
Net increase		869,406			$	10,229,261			2,521,459		$	25,662,598
Investor C
Shares sold		470,204			$	4,833,129			1,111,478		$	11,196,542
Shares issued in reinvestment of distributions		64,920				657,798			115,945			1,164,939
Shares redeemed and automatic conversion of shares		(456,802	)			(4,461,155	)		(1,049,227	)		(10,552,124	)
Net increase		78,322			$	1,029,772			178,196		$	1,809,357
Class K
Shares sold		4,052,798			$	41,418,841			6,948,483		$	70,078,828
Shares issued in reinvestment of distributions		246,159				2,486,772			231,036			2,339,282
Shares redeemed		(1,640,452	)			(15,929,987	)		(981,717	)		(9,938,096	)
Net increase		2,658,505			$	27,975,626			6,197,802		$	62,480,014
Total Net Increase		14,230,049			$	162,280,072			52,856,956		$	535,223,240
GNMA
Institutional
Shares sold		5,602,993			$	52,781,291			15,427,334		$	142,988,642
Shares issued in reinvestment of distributions		410,833				3,883,921			864,234			8,003,637
Shares redeemed		(6,762,582	)			(63,630,302	)		(15,566,731	)		(144,024,973	)
Net increase (decrease)		(748,756	)		$	(6,965,090	)		724,837		$	6,967,306
Service
Shares sold		88,502			$	831,185			164,494		$	1,526,020
Shares issued in reinvestment of distributions		9,860				93,049			27,198			251,100
Shares redeemed		(272,841	)			(2,564,345	)		(321,603	)		(2,989,876	)
Net decrease		(174,479	)		$	(1,640,111	)		(129,911	)	$	(1,212,756	)
Investor A
Shares sold and automatic conversion of shares		1,933,650			$	18,294,266			5,250,976		$	48,741,502
Shares issued in reinvestment of distributions		213,487				2,026,862			450,307			4,187,905
Shares redeemed		(2,029,258	)			(19,186,418	)		(4,421,131	)		(41,065,515	)
Net increase		117,879			$	1,134,710			1,280,152		$	11,863,892
Investor C
Shares sold		672,853			$	6,338,813			1,163,829		$	10,937,269
Shares issued in reinvestment of distributions		39,598				374,242			91,518			845,219
Shares redeemed and automatic conversion of shares		(664,389	)			(6,264,256	)		(2,479,363	)		(22,822,846	)
Net increase (decrease)		48,062			$	448,799			(1,224,016	)	$	(11,040,358	)
Class K
Shares sold		3,174,238			$	29,810,930			3,022,864		$	27,813,799
Shares issued in reinvestment of distributions		105,853				997,750			142,490			1,318,004
Shares redeemed		(573,855	)			(5,382,989	)		(578,778	)		(5,332,217	)
Net increase		2,706,236			$	25,425,691			2,586,576		$	23,799,586
				��
Total Net Increase		1,948,942			$	18,403,999			3,237,638		$	30,377,670

NOTESTO FINANCIAL STATEMENTS 103

Notes to Financial Statements  (unaudited) (continued)

	Six Months Ended 03/31/20						Year Ended 09/30/19
	Shares			Amount			Shares			Amount
U.S. Government Bond
Institutional
Shares sold		18,532,316		$	200,038,173			10,668,766		$	109,831,549
Shares issued in reinvestment of distributions		200,344			2,151,437			384,160			3,965,079
Shares redeemed		(6,656,013	)		(71,229,325	)		(7,136,526	)		(73,080,273	)
Net increase		12,076,647		$	130,960,285			3,916,400		$	40,716,355
Service
Shares sold		6,870		$	74,078			751,150		$	7,875,541
Shares issued in reinvestment of distributions		6,487			69,284			6,221			65,067
Shares redeemed		(739,623	)		(8,166,578	)		(54,005	)		(556,203	)
Net increase (decrease)		(726,266	)	$	(8,023,216	)		703,366		$	7,384,405
Investor A
Shares sold and automatic conversion of shares		8,297,512		$	90,040,833			8,716,105		$	89,895,499
Shares issued in reinvestment of distributions		269,902			2,902,431			730,163			7,535,350
Shares redeemed		(5,386,798	)		(57,838,253	)		(11,304,953	)		(116,685,677	)
Net increase (decrease)		3,180,616		$	35,105,011			(1,858,685	)	$	(19,254,828	)
Investor C
Shares sold		1,591,381		$	17,203,634			1,161,487		$	11,995,422
Shares issued in reinvestment of distributions		11,893			127,638			48,463			498,458
Shares redeemed and automatic conversion of shares		(1,385,985	)		(14,825,787	)		(2,232,542	)		(23,016,807	)
Net increase (decrease)		217,289		$	2,505,485			(1,022,592	)	$	(10,522,927	)
Investor C1(a)
Shares sold		74,400		$	789,110			338,307		$	3,502,377
Shares issued in reinvestment of distributions		4,103			43,575			25,010			256,867
Shares redeemed and automatic conversion of shares		(1,019,983	)		(10,944,602	)		(1,080,651	)		(11,093,108	)
Net decrease		(941,480	)	$	(10,111,917	)		(717,334	)	$	(7,333,864	)
Class K
Shares sold		955,473		$	10,226,117			377,980		$	3,927,086
Shares issued in reinvestment of distributions		8,819			94,964			6,679			69,463
Shares redeemed		(170,813	)		(1,830,643	)		(62,292	)		(647,151	)
Net increase		793,479		$	8,490,438			322,367		$	3,349,398
Class R
Shares sold		181,294		$	1,954,407			623,197		$	6,385,776
Shares issued in reinvestment of distributions		8,540			91,588			38,152			392,618
Shares redeemed		(748,713	)		(8,031,532	)		(1,326,242	)		(13,655,183	)
Net decrease		(558,879	)	$	(5,985,537	)		(664,893	)	$	(6,876,789	)
Total Net Increase		14,041,406		$	152,940,549			678,629		$	7,461,750

^(a)  On February 24, 2020, the Fund’s issued and outstanding Investor C1 Shares converted into Investor A Shares.

As of March 31, 2020, BlackRock Financial Management, Inc., an affiliate of the Funds, owned $9,800,000 Institutional Shares of Credit Strategies Income.

12. 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 16, 2020, the credit agreement was extended until April 2021 under the same terms, except that Credit Strategies Income is no longer eligible to borrow under the designated tranche.

104 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement Regarding Liquidity Risk Management Program

The Securities and Exchange Commission adopted Rule22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout theopen-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

The Board of Trustees (the “Board”) of BlackRock Funds V, on behalf of BlackRock Credit Strategies Income Fund, BlackRock GNMA Portfolio and BlackRock U.S. Government Bond Portfolio, met on November14-15, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the BlackRockopen-end funds, excluding money market funds (each, a “Fund”), pursuant to the Liquidity Rule. The Board has appointed BlackRock Advisors, LLC or BlackRock Fund Advisors (“BlackRock”), each an investment adviser to certain Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:

A. The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions:During the ProgramReporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for anopen-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Where a Fund participated in borrowings for investment purposes (such as tender option bonds and reverse repurchase agreements), such borrowings were factored into the Program’s calculation of a Fund’s liquidity bucketing. Derivative exposure was also considered in such calculation.

B.Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions:During the Program Reporting Period,the Committee reviewed historical net redemption activity and used this information as a component to establish each Fund’s reasonably anticipated trading size (“RATS”). Each Fund has adopted anin-kind redemption policy which may be utilized to meet larger redemption requests. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projections.

C.Holdings of cash and cash equivalents, as well as borrowing arrangements:The Committee considered the terms of the credit facility applicable to the Funds, thefinancial health of the institution providing the facility and the fact that the credit facility is shared among multiple Funds (including that a portion of the aggregate commitment amount is specifically designated for BlackRock Floating Rate Income Portfolio and BlackRock Credit Strategies Income Fund, each a series of BlackRock Funds V). The Committee also considered other types of borrowing available to the Funds, such as the ability to use reverse repurchase agreements and interfund lending, as applicable.

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM 105

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

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

Lisa Belle, Anti-Money Laundering Compliance Officer

Janey Ahn, Secretary

Further information about the Trust’s Trustees and Officers is available in the Trust’s Statement of Additional Information, which can be obtained without charge by calling(800) 441-7762.

Effective February 19, 2020, Henry Gabbay resigned as a Trustee of the Trust.

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 BlackRock Credit Strategies Income Fund.

106 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Additional Information

General Information

Householding

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

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on FormN-Q. The Funds’ FormsN-PORT andN-Q are available on the SEC’s website at 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) atblackrock.com; and (3) on the SEC’s website at 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) atblackrock.com or by calling (800)441-7762 and (2) on the SEC’s website at sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup ofopen-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income andtax-exempt investing. Visitblackrock.comfor 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 visitblackrock.com for more information.

Automatic Investment Plans

Investor class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

ADDITIONAL INFORMATION 107

Additional Information  (continued)

BlackRock Privacy Principles

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

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

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

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

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

108 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report

Currency
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CNH	Chinese Yuan Offshore
CNY	Chinese Yuan
COP	Colombian Peso
EUR	Euro
GBP	British Pound
HKD	Hong Kong Dollar
IDR	Indonesian Rupiah
JPY	Japanese Yen
KRW	South Korean Won
KZT	Kazakhstani Tenge
MXN	Mexican Peso
RUB	New Russian Ruble
USD	United States Dollar
ZAR	South African Rand
Portfolio Abbreviations
ABS	Asset-Backed Security
BZDIOVER	Overnight Brazil CETIP — Interbank Rate
CLO	Collateralized Loan Obligation
DAC	Designated Activity Company
ETF	Exchange-Traded Fund
EURIBOR	Euro Interbank Offered Rate
LIBOR	London Interbank Offered Rate
MSCI	Morgan Stanley Capital International
MXIBTIIE	Mexico Interbank TIIE28-Day
OTC	Over-the-counter
PCL	Public Company Limited
PIK	Payment-In-Kind
PJSC	Public Joint Stock Company
REIT	Real Estate Investment Trust
S&P	Standard & Poor’s
SOFR	Secured Overnight Financing Rate
TBA	To-be-announced

GLOSSARYOF TERMS USEDINTHIS REPORT 109

Want to know more?

blackrock.com     |    800-441-7762

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the 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-3/20-SAR

MARCH 31, 2020

2020 Semi-Annual Report

(Unaudited)

BlackRock Funds V

· BlackRock Core Bond Portfolio

· BlackRock High Yield Bond Portfolio

· 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 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,

The last 12 months have been a time of sudden change in global financial markets, as a long period of growth and positive returns was interrupted in early 2020 by the emergence and spread of the coronavirus. For much of the reporting period, U.S. equities and bonds both delivered impressive returns, despite fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. But as the threat from the coronavirus became more apparent throughout February and March 2020, leading countries around the world took economically disruptive countermeasures, causing equity prices to fall sharply. Now that the virus has spread around the globe and an economic downturn appears inevitable, investors are faced with the question of how long and how deep it will be.

Returns for most securities were robust for the first ten months of the reporting period, as investors began to realize that the U.S. economy was maintaining the modest yet steady growth that had characterized this economic cycle. However, oncestay-at-home orders and closures ofnon-essential businesses became widespread, many workers were laid off and unemployment claims spiked. With large portions of the economy on hold, all types of equities, both in the United States and internationally, ended the reporting period with negative performance.

The performance of different types of fixed-income securities diverged substantially due to a reduced investor appetite for risk. Treasuries benefited from therisk-off environment, and posted healthy returns, as the10-year yield (which is inversely related to bond prices) fell to anall-time low. Investment-grade corporate bonds also delivered a positive return, while high-yield corporates were down due to credit concerns.

The U.S. Federal Reserve (the “Fed”) reduced interest rates three times in 2019, to support slowing economic growth. After the coronavirus outbreak, the Fed instituted two emergency rate cuts, pushing short-term interest rates close to zero. To stabilize credit markets, the Fed also announced a new bond-buying program, as did several other central banks around the world, including the European Central Bank and the Bank of Japan.

Looking ahead, while coronavirus-related disruption is certain to hurt worldwide economic growth, the global expansion is likely to continue once the impact of the outbreak subsides. For the near term, however, the disruption is likely to act as a further drag on corporate earnings, following flat earnings growth in 2019. Nonetheless, there are promising signs that a strong coordinated monetary and fiscal response is beginning to take place, both in the United States and abroad. With measures being taken to contain the virus and provide support to impacted businesses and individuals, we anticipate a sharp increase in economic activity as life returns to normal.

Overall, we favor a neutral stance toward risk, given the uncertainty surrounding the economic impact of coronavirus countermeasures. Among equities, we see an advantage in U.S. stocks compared to other developed markets, given the diversity of the U.S. economy and the impressive scope of monetary and fiscal stimulus. In bonds, the swift action taken by the world’s central banks means there are attractive opportunities in credit, and we expect credit spreads to narrow as markets stabilize.

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, 2020
	6-Month	12-Month
U.S. large cap equities (S&P 500®Index)	(12.31)%	(6.98)%
U.S. small cap equities (Russell 2000®Index)	(23.72)	(23.99)
International equities (MSCI Europe, Australasia, Far East Index)	(16.52)	(14.38)
Emerging market equities (MSCI Emerging Markets Index)	(14.55)	(17.69)
3-month Treasury bills (ICE BofAML3-Month U.S. Treasury Bill Index)	1.04	2.25
U.S. Treasury securities (ICE BofAML10-Year U.S. Treasury Index)	9.95	18.25
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	3.33	8.93
Tax-exempt municipal bonds (S&P Municipal Bond Index)	0.07	3.78
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	(10.40)	(6.94)
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
The Benefits and Risks of Leveraging		13
About Fund Performance		13
Disclosure of Expenses		14
Derivative Financial Instruments		14
Financial Statements:
Schedules of Investments		15
Statements of Assets and Liabilities		96
Statements of Operations		99
Statements of Changes in Net Assets		100
Financial Highlights		102
Notes to Financial Statements		121
Disclosure ofSub-Advisory Agreements		140
Statement Regarding Liquidity Risk Management Program		141
Trustee and Officer Information		142
Additional Information		143
Glossary of Terms Used in this Report		145

3

Fund Summary  as of March 31, 2020  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, 2020, the Fund underperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.

What factors influenced performance?

During thesix-month period, the principal detractors from Fund performance included the Fund’s holdings in securitized assets such as collateralized loan obligations and commercial mortgage-backed securities (“CMBS”). Exposure to U.S. investment grade corporate credit municipal bonds also weighed on Fund performance.

Positive contributions to relative performance were led by the Fund’s overweight stance with respect to duration (sensitivity to interest rate changes). The Fund’s macro-oriented strategies also added to Fund performance during the period.

During the period, the Fund held derivatives for risk management purposes as well as to manage exposures with the goal of generating additional return. The Fund’s use of derivatives generally added to performance during the period.

At the end of the period, the Fund held approximately an 11% cash position. Due to extreme market stress and volatility, the investment adviser raised cash within the portfolio to mitigate risk and provide for increased flexibility to take advantage of opportunities from potential market dislocations. The Fund’s cash balance did not have a material impact on Fund performance.

Describe recent portfolio activity.

During the fourth quarter of 2019, the Fund’s duration was slightly reduced, but a small overweight in duration (0.2 years) versus the benchmark was maintained. Duration exposure was reduced mainly from the long end of the yield curve, with some of the risk shifted to the front end of the curve as an overall portfolio strategy. As exposures in investment grade credits were reduced given valuation concerns, overweight positions in agency mortgage-backed securities (“MBS”) and inflation-protected bonds were increased. At this time, the investment adviser favored agency MBS on the view that demand from banks and foreign investors should remain supportive, and prepayment speeds will likely be slower than the market expects. The investment adviser also expected slow and steady increases in inflation in 2020 driven mainly by a weaker dollar, a strong labor market and a bottoming out of global growth.

However, in the first quarter of 2020, the tone of the markets took a sharply negative turn as the coronavirus pandemic emerged, essentially bringing much of the global economy to a halt. With investors reaching for cash, liquidity became a major issue across fixed-income markets. Given the massive magnitude of the economic shock, while still holding a duration overweight of 0.4 years versus the benchmark, the Fund closed its overweight within the front end of the curve and added to three- to five-year issues and the seven- to10-year portion of the yield curve. After a sharp reduction in exposure to agency MBS when valuations there rose in February, the Fund returned to an overweight position inmid-March as mortgage option-adjusted spreads widened alongside other risk assets. The sector has since benefited from the Fed’s announcement of a mortgage securities purchase program. Securitized assets experienced significant selling pressure in March as investors sought liquidity. The Fund’s positioning in securitized assets focused on higher quality assets with strong levels of protection. At current valuations, the investment adviser believes that this segment represents an attractive buying opportunity.

Describe portfolio positioning at period end.

At period end, the Fund maintained its overweight in duration versus the benchmark. The Fund also held an overweight to the belly part (generally the three- to seven-year area) of the yield curve. The Fund was overweight in agency MBS given the constructive technical backdrop deriving from the Fed’s MBS purchase program. As market functions were restored, the Fund held increased exposure to the investment grade corporatenew-issue market, where the investment adviser saw attractive opportunities resulting from recent market dislocations. Finally, the Fund remained overweight in securitized assets, including CMBS, asset-backed securities andnon-agency MBS, with anup-in-quality bias.

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 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2020 (continued) BlackRock Core Bond Portfolio

Performance Summary for the Period Ended March 31, 2020

										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		2.34	%		2.24	%		1.02	%		6.71	%		N/A			2.79	%		N/A			3.92	%		N/A
Service		2.09			1.93			0.89			6.33			N/A			2.48			N/A			3.61			N/A
Investor A		2.01			1.89			0.89			6.33			2.07	%		2.48			1.65	%		3.61			3.19	%
Investor C		1.34			1.17			0.51			5.55			4.55			1.74			1.74			2.85			2.85
Class K		2.40			2.36			1.04			6.75			N/A			2.84			N/A			4.00			N/A
Class R		1.84			1.69			0.77			6.17			N/A			2.25			N/A			3.34			N/A
Bloomberg Barclays U.S. Aggregate Bond Index(c)		—			—			3.33			8.93			N/A			3.36			N/A			3.88			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)
	Beginning Account Value (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Beginning Account Value (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,010.20	$	2.16	$	1,000.00	$	1,022.85	$	2.17		0.43	%
Service		1,000.00		1,008.90		3.42		1,000.00		1,021.60		3.44		0.68
Investor A		1,000.00		1,008.90		3.42		1,000.00		1,021.60		3.44		0.68
Investor C		1,000.00		1,005.10		7.17		1,000.00		1,017.85		7.21		1.43
Class K		1,000.00		1,010.40		1.91		1,000.00		1,023.10		1.92		0.38
Class R		1,000.00		1,007.70		4.67		1,000.00		1,020.35		4.70		0.93

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/366 (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, 2020 (continued) BlackRock Core Bond Portfolio

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of  Total Investments	(a)
U.S. Government Sponsored Agency Securities	34	%
Corporate Bonds	33
U.S. Treasury Obligations	19
Asset-Backed Securities	6
Municipal Bonds	4
Non-Agency Mortgage-Backed Securities	3
Foreign Government Obligations	1
Capital Trusts	—	(b)
Foreign Agency Obligations	—	(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

Credit Rating(a)	Percent of Total Investments	(b)
AAA/Aaa(c)	60	%
AA/Aa	5
A	18
BBB/Baa	16
BB/Ba	—	(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 or Moody’s Investors Service if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/ Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

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

6 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2020  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.

Portfolio Management Commentary

How did the Fund perform?

For thesix-month period ended March 31, 2020, the Fund underperformed the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index.

What factors influenced performance?

During the period, an underweight toBB-rated securities within high yield corporate bonds detracted from Fund performance. Across sectors, the Fund’s underweights to the consumer products and food & beverage segments detracted from returns. Security selection within independent energy also weighed on performance. From an asset allocation perspective,out-of-benchmark positions in both equities and bank loans detracted over the period, particularly in March 2020 as the market experienced a materialsell-off.

From a sector perspective, the strategy’s underweight to energy, and to the oil field services and midstream segments in particular, contributed to Fund performance over the period. An overweight to technology was also additive, as was security selection within aerospace & defense and wirelines. Lastly, security selection within lower quality exposures, specificallyCCC-rated issues, proved beneficial.

The Fund’s cash position was increased toward the end of the period in an effort to enhance the Fund’s liquidity profile given market conditions. The Fund’s cash position was ultimately beneficial to Fund performance given the poor performance of risk assets.

Describe recent portfolio activity.

Financial market volatility materially increased during the first quarter of 2020, particularly in March under stresses from the coronavirus pandemic and sharply declining oil prices. While overarching portfolio themes remained intact, including an underweight toBB-rated securities and underweights to energy & consumer cyclicals, the Fund shifted positioning to take advantage of attractive valuations across the market. From a quality perspective, investment grade exposure was increased throughout the period, particularly at the end of March as investment grade new issues saw several favorable trading days of well-received new issues. Floating rate loan interest exposure, another meaningfulout-of-benchmark allocation, remained in the high single digits. From a sector perspective, the Fund’s energy underweight grew more pronounced throughout the period. The Fund was underweight across other sectors severely affected by the coronavirus, such as automotive, airlines, leisure and lodging.

Describe portfolio positioning at period end.

Overall, the Fund remained underweightBB-rated credits. The portfolio was overweightB-rated issues and overweight selectCCC-rated securities with improving credit positions, specific catalysts or attractive yields. Importantly, the Fund maintained underweights to the market’s extremes: the higher-yielding segment of the market that contains a larger concentration of stressed assets and the lower yielding portion offering insufficient incremental income. Top sector overweight positions included technology, aerospace & defense, and banking. The most significant sector underweights included the broad consumer cyclical space, most notably retail and automotive names, on the view that these market segments faced substantial fundamental headwinds even prior to the coronavirus. Additionally, the Fund remained underweight in the communications space, predominately media & entertainment. Within energy, the Fund was underweight across the midstream, independent energy and oil field services segments at period end.

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, 2020 (continued) BlackRock High Yield Bond Portfolio

Performance Summary for the Period Ended March 31, 2020

										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		7.05	%		7.05	%		(11.12	)%		(7.00	)%		N/A			2.37	%		N/A			5.64	%		N/A
Service		6.78			6.77			(11.10	)		(7.10	)		N/A			2.08			N/A			5.33			N/A
Investor A		6.45			6.45			(11.26	)		(7.16	)		(10.88	)%		2.04			1.21	%		5.31			4.88	%
Investor C		5.95			5.95			(11.56	)		(7.81	)		(8.69	)		1.30			1.30			4.53			4.53
Class K		7.18			7.17			(10.93	)		(6.75	)		N/A			2.47			N/A			5.75			N/A
Class R		6.44			6.44			(11.38	)		(7.42	)		N/A			1.73			N/A			4.98			N/A
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index(c)		—			—			(10.40	)		(6.94	)		N/A			2.78			N/A			5.64			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.

^(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 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 Interest Expense		Excluding Interest Expense				Including Interest Expense				Excluding Interest Expense
	Beginning Account Value (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Ending Account Value (03/31/20)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	888.80	$	2.83	$	2.83	$	1,000.00	$	1,022.00	$	3.03	$	1,022.00	$	3.03
Service		1,000.00		889.00		4.06		4.06		1,000.00		1,020.70		4.34		1,020.70		4.34
Investor A		1,000.00		887.40		4.29		4.29		1,000.00		1,020.45		4.60		1,020.45		4.60
Investor C		1,000.00		884.40		7.63		7.63		1,000.00		1,016.90		8.17		1,016.90		8.17
Class K		1,000.00		890.70		2.27		2.27		1,000.00		1,022.60		2.43		1,022.60		2.43
Class R		1,000.00		886.20		5.56		5.56		1,000.00		1,019.10		5.96		1,019.10		5.96

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.60% for Institutional, 0.86% for Service, 0.91% for Investor A, 1.62% for Investor C, 0.48% for Class K and 1.18% for Class R), multiplied by the average account value over the period, multiplied by 183/366 (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, 0.86% for Service, 0.91% for Investor A, 1.62% for Investor C, 0.48% for Class K and 1.18% for Class R), multiplied by the average account value over the period, multiplied by 183/366 (to reflect theone-half year period shown).

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

8 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2020 (continued) BlackRock High Yield Bond Portfolio

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of  Total Investments	(a)
Corporate Bonds	83	%
Floating Rate Loan Interests	9
Investment Companies	5
Preferred Securities	2
Common Stocks	1
Asset-Backed Securities	—	(b)
Foreign 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

Credit Rating(a)	Percent of Total Investments	(b)
AA/Aa	1	%
A	3
BBB/Baa	10
BB/Ba	35
B	34
CCC/Caa	11
D	—	(c)
NR	6

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

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

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

FUND SUMMARY 9

Fund Summary  as of March 31, 2020  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, 2020, the Fund underperformed the ICE BofAML1-3 Year U.S. Corporate & Government Index.

What factors influenced performance?

During the period, the main detractors from Fund performance were its allocations to investment grade corporate credit, high yield corporate credit, asset-backed securities (“ABS”) and commercial mortgage-backed securities (“CMBS”).

Conversely, the principal contributor to Fund performance came from its tactical allocation to mortgage-backed securities (“MBS”).

The Fund’s slightly elevated cash position at period end, was maintained to provide ample liquidity within the Fund in order to take advantage of new opportunities in investment grade credit given the widening of spreads in the sector. The Fund’s cash balance did not have a material impact on Fund performance.

Describe recent portfolio activity.

During the fourth quarter of 2019, the Fund was positioned with a slightly long duration bias in thetwo-year portion of the yield curve on the view that the Fed was unlikely to hike rates going into 2020 given muted inflationary pressures. Regarding sector allocation, the Fund’s exposure to U.S. investment grade corporate credit was reduced and its tactical overweight in European corporate credit was increased given attractive currency-hedged yields and support for the sector from the European Central Bank bond purchase program. The investment adviser also remained positive regarding agency MBS, where spreads looked attractive relative to corporate credit and ABS. In late February, the Fund took profits on half of its MBS exposure as the sector remained resilient during the market’s“risk-off” move during February. As the global coronavirus pandemic and oil price shocks battered the financial system in March 2020, credit spreads widened to levels last seen during the financial crisis. This acute spread widening created attractive opportunities, particularly in the U.S. corporate credit market. Toward the end of the reporting period, the investment adviser began to view U.S. corporate credit more favorably as the Fed announced new credit facilities in support of both the primary and secondary markets.

Describe portfolio positioning at period end.

At the end of the reporting period, the Fund was positioned with a long duration bias given the greater risk of a short-term downturn in the United States as well as globally due to the coronavirus pandemic. The Fund emphasized exposure to real rates over nominal rates on the view that inflation expectations are undervalued. From a sector allocation perspective, the Fund remained structurally underweight in U.S. Treasuries versus the benchmark. The Fund continued to be constructive regarding corporate credit and also had significantout-of-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 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Fund Summary  as of March 31, 2020 (continued) BlackRock Low Duration Bond Portfolio

Performance Summary for the Period Ended March 31, 2020

										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		2.36	%		2.31	%		(2.50	)%		(0.27	)%		N/A			1.30	%		N/A			2.08	%		N/A
Service		2.10			2.00			(2.63	)		(0.52	)		N/A			1.02			N/A			1.75			N/A
Investor A		2.06			1.95			(2.52	)		(0.41	)		(2.65	)%		1.04			0.58	%		1.76			1.53	%
Investor A1		2.26			2.16			(2.55	)		(0.37	)		N/A			1.18			N/A			1.91			N/A
Investor C		1.34			1.23			(2.99	)		(1.26	)		(2.24	)		0.26			0.26			1.00			1.00
Class K		2.41			2.39			(2.48	)		(0.22	)		N/A			1.35			N/A			2.12			N/A
Class R		1.85			1.70			(2.75	)		(0.77	)		N/A			0.76			N/A			1.40			N/A
ICE BofAML1-3 Year U.S. Corporate & Government Index(c)		—			—			2.21			4.45			N/A			1.90			N/A			1.65			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 (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (10/01/19)		Ending Account Value (03/31/20)		Expenses Paid During the Period (b)		Ending Account Value (03/31/20)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	975.00	$	1.98	$	1.98	$	1,000.00	$	1,023.00	$	2.02	$	1,023.00	$	2.02
Service		1,000.00		973.70		3.21		3.21		1,000.00		1,021.75		3.29		1,021.75		3.29
Investor A		1,000.00		974.80		3.21		3.21		1,000.00		1,021.75		3.29		1,021.75		3.29
Investor A1		1,000.00		974.50		2.47		2.47		1,000.00		1,022.50		2.53		1,022.50		2.53
Investor C		1,000.00		970.10		6.90		6.90		1,000.00		1,018.00		7.06		1,018.00		7.06
Class K		1,000.00		975.20		1.73		1.73		1,000.00		1,023.25		1.77		1,023.25		1.77
Class R		1,000.00		972.50		4.44		4.44		1,000.00		1,020.50		4.55		1,020.50		4.55

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

^(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, 0.35% for Class K and 0.90% for Class R), multiplied by the average account value over the period, multiplied by 183/366 (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, 0.35% for Class K and 0.90% for Class R), multiplied by the average account value over the period, multiplied by 183/366 (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, 2020 (continued) BlackRock Low Duration Bond Portfolio

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments	(a)
Corporate Bonds	34	%
Asset-Backed Securities	24
Non-Agency Mortgage-Backed Securities	18
U.S. Government Sponsored Agency Securities	12
U.S. Treasury Obligations	6
Investment Companies	3
Foreign Government Obligations	2
Foreign Agency Obligations	1
Municipal Bonds	—	(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

Credit Rating(a)	Percent of Total Investments	(b)
AAA/Aaa(c)	54	%
AA/Aa	4
A	14
BBB/Baa	20
BB/Ba	1
B	—	(d)
CCC/Caa	—	(d)
D	—	(d)
NR	7

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

^(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.

12 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

The Benefits and Risks of Leveraging

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

The 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 Funds 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 the Funds’ shareholders and may reduce income.

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.

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.

On February 24, 2020, BlackRock High Yield Bond Portfolio’s issued and outstanding Investor C1 Shares and BlackRock Low Duration Bond Portfolio’s issued and outstanding Investor C2 and Investor C3 Shares converted into Investor A Shares with the same relative aggregate NAV.

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. These shares are only available for dividend and capital gain reinvestment by existing shareholders and for purchase by certain eligible employer-sponsored retirement plans. 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. These shares automatically convert to Investor A Shares after approximately ten years.

Class R Shares 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, 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.

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

BlackRock Advisors, LLC (the “Manager”), 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. With respect to each Fund’s contractual waivers, 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 BENEFITSAND RISKSOF LEVERAGING / ABOUT FUND PERFORMANCE 13

About Fund Performance  (continued)

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.

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, administration fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples on the previous pages (which are based on a hypothetical investment of $1,000 invested on October 1, 2019 and held through March 31, 2020) 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.

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 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 6.1%
Adams Mill CLO Ltd.,Series 2014-1A, Class A2R, (LIBOR USD 3 Month + 1.10%), 2.93%, 07/15/26(a)(b)	USD		920	$	914,502
AGL Core CLO 2 Ltd.,Series 2019-2A, Class A1, (LIBOR USD 3 Month + 1.39%), 3.29%, 04/20/32(a)(b)			1,320		1,217,296
Allegro CLOII-S Ltd.,Series 2014-1RA, Class A1, (LIBOR USD 3 Month + 1.08%), 2.90%, 10/21/28(a)(b)			1,130		1,085,972
Allegro CLO IV Ltd.(a)(b):
Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 2.98%, 01/15/30			1,460		1,404,825
Series 2016-1A, Class BR, (LIBOR USD 3 Month + 1.70%), 3.53%, 01/15/30			560		507,494
ALM Ltd.,Series 2020-1A, Class A2, (LIBOR USD 3 Month + 1.85%), 3.36%, 10/15/29(a)(b)			1,260		1,072,518
ALM VII R Ltd.,Series 2013-7RA, Class A1R, (LIBOR USD 3 Month + 1.41%), 3.24%, 10/15/28(a)(b)			690		662,542
ALM XIX Ltd.,Series 2016-19A, Class A2RA, (LIBOR USD 3 Month + 1.45%), 2.45%, 04/16/29(a)(b)(c)			730		730,000
ALM XVI Ltd.(a)(b):
Series 2015-16A, Class A2R2, (LIBOR USD 3 Month + 1.50%), 3.33%, 07/15/27			1,480		1,290,625
Series 2015-16A, Class BR2, (LIBOR USD 3 Month + 1.90%), 3.73%, 07/15/27			560		463,487
ALM XVIII Ltd.,Series 2016-18A, Class A2R, (LIBOR USD 3 Month + 1.65%), 3.48%, 01/15/28(a)(b)			250		216,891
AMMC CLO 16 Ltd.,Series 2015-16A, Class BR, (LIBOR USD 3 Month + 1.60%), 3.44%, 04/14/29(a)(b)			250		216,398
AMMC CLO XII Ltd.,Series 2013-12A, Class AR, (LIBOR USD 3 Month + 1.20%), 2.93%, 11/10/30(a)(b)			500		468,623
AMMC CLO XIII Ltd.,Series 2013-13A, Class A1LR, (LIBOR USD 3 Month + 1.26%), 3.06%, 07/24/29(a)(b)			790		752,795
AMMC CLO XIV Ltd.,Series 2014-14A, Class A1LR, (LIBOR USD 3 Month + 1.25%), 3.04%, 07/25/29(a)(b)			1,530		1,456,476
Anchorage Capital CLO1-R Ltd., Series 2018- 1RA, Class A1, (LIBOR USD 3 Month + 0.99%), 2.84%, 04/13/31(a)(b)			2,240		2,080,181
Anchorage Capital CLO3-R Ltd.,Series 2014-3RA, Class B, (LIBOR USD 3 Month + 1.50%), 3.30%, 01/28/31(a)(b)			1,040		948,435
Anchorage Capital CLO4-R Ltd.(a)(b):
Series 2014-4RA, Class A, (LIBOR USD 3 Month + 1.05%), 2.85%, 01/28/31			920		869,584
Series 2014-4RA, Class C, (LIBOR USD 3 Month + 1.85%), 3.65%, 01/28/31			360		295,154
Anchorage Capital CLO5-R Ltd.(a)(b):
Series 2014-5RA, Class B, (LIBOR USD 3 Month + 1.45%), 3.28%, 01/15/30			420		364,400
Series 2014-5RA, Class C, (LIBOR USD 3 Month + 1.85%), 3.68%, 01/15/30			250		205,643
Anchorage Capital CLO 6 Ltd.,Series 2015-6A, Class AR, (LIBOR USD 3 Month + 1.27%), 3.10%, 07/15/30(a)(b)			580		542,599
Anchorage Capital CLO 7 Ltd.(a)(b):
Series 2015-7A, Class AR2, (LIBOR USD 3 Month + 1.09%), 2.11%, 01/28/31			930		877,052
Series 2015-7A, Class BR2, (LIBOR USD 3 Month + 1.75%), 2.77%, 01/28/31			1,640		1,396,004

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2015-7A, Class D1R2, (LIBOR USD 3 Month + 3.50%), 4.52%, 01/28/31	USD		250	$	187,274
Anchorage Capital CLO 8 Ltd.(a)(b):
Series 2016-8A, Class AR, (LIBOR USD 3 Month + 1.00%), 2.80%, 07/28/28			570		554,574
Series 2016-8A, Class BR, (LIBOR USD 3 Month + 1.60%), 3.40%, 07/28/28			650		564,146
Anchorage Capital CLO Ltd.,Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.10%, 10/13/30(a)(b)			670		626,883
Apidos CLO XII,Series 2013-12A, Class AR, (LIBOR USD 3 Month + 1.08%), 2.91%, 04/15/31(a)(b)			4,916		4,419,619
Apidos CLO XV,Series 2013-15A, Class A1RR, (LIBOR USD 3 Month + 1.01%), 2.83%, 04/20/31(a)(b)			500		463,482
Apidos CLO XVIII,Series 2018-18A, Class A1, (LIBOR USD 3 Month + 1.14%), 2.94%, 10/22/30(a)(b)			350		323,672
Apidos CLO XXXI,Series 2019-31A, Class B, (LIBOR USD 3 Month + 1.90%), 3.73%, 04/15/31(a)(b)			580		514,148
Ares XXXVII CLO Ltd.,Series 2015-4A, Class A1R, (LIBOR USD 3 Month + 1.17%), 3.00%, 10/15/30(a)(b)			310		290,227
Atrium IX, Series 9A, Class AR, (LIBOR USD 3 Month + 1.24%), 2.85%, 05/28/30(a)(b)			990		933,696
Atrium XII, Series 12A, Class AR, (LIBOR USD 3 Month + 0.83%), 2.63%, 04/22/27(a)(b)			380		372,279
Avery Point IV CLO Ltd.,Series 2014-1A, Class AR, (LIBOR USD 3 Month + 1.10%), 2.89%, 04/25/26(a)(b)			2,582		2,563,687
Avery Point V CLO Ltd.(a)(b):
Series 2014-5A, Class AR, (LIBOR USD 3 Month + 0.98%), 2.82%, 07/17/26			488		476,032
Series 2014-5A, Class BR, (LIBOR USD 3 Month + 1.50%), 3.34%, 07/17/26			650		569,828
Avery Point VI CLO Ltd.(a)(b):
Series 2015-6A, Class AR, (LIBOR USD 3 Month + 1.05%), 2.79%, 08/05/27			900		796,767
Series 2015-6A, Class BR, (LIBOR USD 3 Month + 1.50%), 3.24%, 08/05/27			840		728,409
Avery Point VII CLO Ltd.,Series 2015-7A, Class AR, (LIBOR USD 3 Month + 1.14%), 2.97%, 01/15/28(a)(b)			1,650		1,588,316
B2R Mortgage Trust,Series 2015-2, Class A, 3.34%, 11/15/48(b)			88		87,811
Babson CLO Ltd.,Series 2015-IA, Class BR, (LIBOR USD 3 Month + 1.40%), 3.22%, 01/20/31(a)(b)			250		218,668
Bain Capital Credit CLO Ltd.,Series 2018-2A, Class A1, (LIBOR USD 3 Month + 1.08%), 2.90%, 07/19/31(a)(b)			330		306,889
Barings CLO Ltd.,Series 2018-3A, Class A1, (LIBOR USD 3 Month + 0.95%), 2.77%, 07/20/29(a)(b)			270		258,199
Battalion CLO VII Ltd.,Series 2014-7A, Class A1RR, (LIBOR USD 3 Month + 1.04%), 2.88%, 07/17/28(a)(b)			800		777,272
Battalion CLO VIII Ltd.(a)(b)(c):
Series 2015-8A, Class A1R2, (LIBOR USD 3 Month + 1.07%), 2.76%, 07/18/30			1,332		1,332,000
Series 2015-8A, Class A2R2, (LIBOR USD 3 Month + 1.55%), 3.24%, 07/18/30			666		666,000

SCHEDULESOF INVESTMENTS 15

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Battalion CLO X Ltd.,Series 2016-10A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.05%, 01/24/29(a)(b)	USD		4,880	$	4,691,216
BDS Ltd.,Series 2019-FL3, Class A, (LIBOR USD 1 Month + 1.40%), 2.20%, 12/15/35(a)(b)			1,080		995,291
Benefit Street Partners CLO II Ltd.,Series 2013-IIA, Class A2R, (LIBOR USD 3 Month + 1.75%), 3.58%, 07/15/29(a)(b)			650		594,765
Benefit Street Partners CLOV-B Ltd.,Series 2018-5BA, Class A1A, (LIBOR USD 3 Month + 1.09%), 2.91%, 04/20/31(a)(b)			960		890,773
Benefit Street Partners CLO VII Ltd., Series 2015-VIIA, Class A1AR, (LIBOR USD 3 Month + 0.78%), 2.60%, 07/18/27(a)(b)			548		534,108
Black Diamond CLO Ltd.,Series 2013-1A, Class A2R, (LIBOR USD 3 Month + 1.45%), 3.29%, 02/06/26(a)(b)			500		442,994
BlueMountain CLO Ltd.(a)(b):
Series 2013-1A, Class A1R2, (LIBOR USD 3 Month + 1.23%), 3.05%, 01/20/29			1,360		1,307,351
Series 2013-2A, Class A1R, (LIBOR USD 3 Month + 1.18%), 2.98%, 10/22/30			1,770		1,662,141
Series 2015-3A, Class A1R, (LIBOR USD 3 Month + 1.00%), 2.82%, 04/20/31			250		230,756
Carlyle Global Market Strategies CLO Ltd.(a)(b):
Series 2014-1A, Class A1R2, (LIBOR USD 3 Month + 0.97%), 2.81%, 04/17/31			800		735,142
Series 2014-3RA, Class A1A, (LIBOR USD 3 Month + 1.05%), 2.84%, 07/27/31			3,360		3,121,839
Series 2015-3A, Class A2R, (LIBOR USD 3 Month + 1.60%), 3.40%, 07/28/28			530		459,939
Carlyle US CLO Ltd.,Series 2016-4A, Class A2R, (LIBOR USD 3 Month + 1.45%), 3.27%, 10/20/27(a)(b)			250		224,807
CBAM Ltd.(a)(b):
Series 2017-1A, Class A1, (LIBOR USD 3 Month + 1.25%), 3.07%, 07/20/30			1,600		1,511,830
Series 2017-2A, Class B1, (LIBOR USD 3 Month + 1.75%), 3.59%, 10/17/29			810		725,032
CDO Repack SPC Ltd., Series 2006-CLF1, Class D1, 1.00%, 05/20/30(b)			500		518,223
Cedar Funding II CLO Ltd.,Series 2013-1A, Class BR, (LIBOR USD 3 Month + 1.75%), 2.75%, 06/09/30(a)(b)			550		478,595
Cedar Funding VI CLO Ltd.,Series 2016-6A, Class AR, (LIBOR USD 3 Month + 1.09%), 2.91%, 10/20/28(a)(b)			2,980		2,857,875
Cedar Funding VIII CLO Ltd.(a)(b):
Series 2017-8A, Class A1, (LIBOR USD 3 Month + 1.25%), 3.09%, 10/17/30			4,530		4,267,770
Series 2017-8A, Class B, (LIBOR USD 3 Month + 1.70%), 3.54%, 10/17/30			750		660,428
Series 2017-8A, Class C, (LIBOR USD 3 Month + 2.25%), 4.09%, 10/17/30			250		203,380
Cent CLO 17 Ltd., Series C17A, Class A1AR, (LIBOR USD 3 Month + 1.03%), 2.80%, 04/30/31(a)(b)			1,860		1,720,055
Cent CLO 24 Ltd.,Series 2015-24A, Class A1R, (LIBOR USD 3 Month + 1.07%), 2.90%, 10/15/26(a)(b)			920		888,959
CIFC Funding Ltd.(a)(b):
Series 2014-4RA, Class A1A, (LIBOR USD 3 Month + 1.13%), 2.97%, 10/17/30			6,450		6,120,449
Series 2015-2A, Class CR2, (LIBOR USD 3 Month + 2.00%), 3.38%, 04/15/30(c)			633		633,000

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2015-4A, Class A1R, (LIBOR USD 3 Month + 1.15%), 2.97%, 10/20/27	USD		250	$	245,226
Series 2017-1A, Class AR, (LIBOR USD 3 Month + 1.01%), 2.83%, 04/23/29			1,190		1,140,988
Series 2017-1A, Class B, (LIBOR USD 3 Month + 1.70%), 3.52%, 04/23/29			340		294,343
Series 2018-1A, Class A, (LIBOR USD 3 Month + 1.00%), 2.82%, 04/18/31			1,230		1,134,761
Cloud Pass-Through Trust,Series 2019-1A, Class CLOU, 3.55%, 12/05/22(b)(d)			1,281		1,286,139
Cumberland Park CLO Ltd.,Series 2015-2A, Class CR, (LIBOR USD 3 Month + 1.80%), 3.62%, 07/20/28(a)(b)			310		256,110
Deer Creek CLO Ltd.,Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.18%), 3.00%, 10/20/30(a)(b)			1,500		1,404,998
Dryden 36 Senior Loan Fund,Series 2014-36A, Class DR2, (LIBOR USD 3 Month + 3.70%), 5.53%, 04/15/29(a)(b)			250		196,426
Dryden 43 Senior Loan Fund,Series 2016-43A, Class AR, (LIBOR USD 3 Month + 1.14%), 2.96%, 07/20/29(a)(b)			1,590		1,513,781
Dryden 53 CLO Ltd.,Series 2017-53A, Class A, (LIBOR USD 3 Month + 1.12%), 2.95%, 01/15/31(a)(b)			4,900		4,560,309
Dryden XXV Senior Loan Fund, Series 2012- 25A, Class ARR, (LIBOR USD 3 Month + 0.90%), 2.73%, 10/15/27(a)(b)			3,182		2,995,584
Dryden XXVI Senior Loan Fund, Series 2013- 26A, Class AR, (LIBOR USD 3 Month + 0.90%), 2.73%, 04/15/29(a)(b)			330		312,914
Dryden XXVIII Senior Loan Fund, Series 2013- 28A, Class A1LR, (LIBOR USD 3 Month + 1.20%), 2.89%, 08/15/30(a)(b)			1,660		1,565,335
Eaton Vance CLO Ltd.(a)(b):
Series 2013-1A, Class A1RR, (LIBOR USD 3 Month + 1.16%), 2.99%, 01/15/28			270		257,701
Series 2013-1A, Class A2RR, (LIBOR USD 3 Month + 1.85%), 3.68%, 01/15/28			250		216,191
Elm CLO Ltd.(a)(b):
Series 2014-1A, Class ARR, (LIBOR USD 3 Month + 1.17%), 3.01%, 01/17/29			5,500		5,277,956
Series 2014-1A, Class BRR, (LIBOR USD 3 Month + 1.75%), 3.59%, 01/17/29			470		407,464
Elmwood CLO II Ltd.,Series 2019-2A, Class A, (LIBOR USD 3 Month + 1.45%), 3.27%, 04/20/31(a)(b)			250		235,497
Flatiron CLO Ltd.,Series 2015-1A, Class AR, (LIBOR USD 3 Month + 0.89%), 2.72%, 04/15/27(a)(b)			598		583,040
Galaxy XXIII CLO Ltd.,Series 2017-23A, Class A, (LIBOR USD 3 Month + 1.28%), 3.08%, 04/24/29(a)(b)			577		553,207
Galaxy XXIX CLO Ltd.(a)(b):
Series 2018-29A, Class B, (LIBOR USD 3 Month + 1.40%), 3.09%, 11/15/26			250		217,912
Series 2018-29A, Class C, (LIBOR USD 3 Month + 1.68%), 3.37%, 11/15/26			350		289,598
Gilbert Park CLO Ltd.,Series 2017-1A, Class C, (LIBOR USD 3 Month + 1.95%), 3.78%, 10/15/30(a)(b)			640		526,584
GoldenTree Loan Opportunities IX Ltd.,Series 2014-9A, Class AR2, (LIBOR USD 3 Month + 1.11%), 2.88%, 10/29/29(a)(b)			420		398,527

16 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
GoldentTree Loan Management US CLO 1 Ltd.(a)(b):
Series 2017-1A, Class CR, (LIBOR USD 3 Month + 1.85%), 3.50%, 04/20/29	USD		630	$	517,611
Series 2017-1A, Class DR, (LIBOR USD 3 Month + 2.65%), 4.30%, 04/20/29(c)			360		360,000
Grippen Park CLO Ltd.,Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.26%), 3.08%, 01/20/30(a)(b)			251		237,532
GSAA Home Equity Trust,Series 2006-5, Class 2A1, (LIBOR USD 1 Month + 0.07%), 1.02%, 03/25/36(a)			562		245,743
Gulf Stream Meridian 1 Ltd.,Series 2020-IA, Class A1, (LIBOR USD 3 Month + 1.37%), 3.01%, 04/15/33(a)(b)(c)			1,180		1,178,702
Halcyon Loan Advisors Funding Ltd.,Series 2015-2A, Class AR, (LIBOR USD 3 Month + 1.08%), 2.87%, 07/25/27(a)(b)			3,785		3,666,986
Highbridge Loan Management Ltd.(a)(b):
Series 12A-18, Class A1B, (LIBOR USD 3 Month + 1.25%), 3.07%, 07/18/31			250		229,136
Series 6A-2015, Class A1R, (LIBOR USD 3 Month + 1.00%), 2.74%, 02/05/31			3,030		2,780,870
HPS Loan Management Ltd.,Series 10A-16, Class A1R, (LIBOR USD 3 Month + 1.14%), 2.96%, 01/20/28(a)(b)			970		922,402
ICG US CLO Ltd.,Series 2015-1A, Class A1R, (LIBOR USD 3 Month + 1.14%), 2.96%, 10/19/28(a)(b)			865		833,763
Invitation Homes Trust, Series 2018-SFR3, Class A, (LIBOR USD 1 Month + 1.00%), 1.80%, 07/17/37(a)(b)			645		598,499
LCM XIV LP, Series 14A, Class AR, (LIBOR USD 3 Month + 1.04%), 2.87%, 07/20/31(a)(b)			250		230,426
LCM XXI LP, Series 21A, Class AR, (LIBOR USD 3 Month + 0.88%), 2.70%, 04/20/28(a)(b)			820		786,665
Lendmark Funding Trust,Series 2019-2A, Class A, 2.78%, 04/20/28(b)			2,600		2,261,893
LoanCore Issuer Ltd., Series 2018-CRE1, Class A, (LIBOR USD 1 Month + 1.13%), 1.83%, 05/15/28(a)(b)			600		564,352
Madison Park Funding X Ltd.,Series 2012-10A, Class AR2, (LIBOR USD 3 Month + 1.22%), 3.04%, 01/20/29(a)(b)			1,700		1,633,314
Madison Park Funding XI Ltd., Series 2013- 11A, Class AR, (LIBOR USD 3 Month + 1.16%), 2.97%, 07/23/29(a)(b)			2,000		1,907,412
Madison Park Funding XIII Ltd., Series 2014- 13A, Class AR2, (LIBOR USD 3 Month + 0.95%), 2.77%, 04/19/30(a)(b)			1,090		934,231
Madison Park Funding XIX Ltd., Series 2015- 19A, Class A1R2, (LIBOR USD 3 Month + 0.92%), 1.79%, 01/22/28(a)(b)(c)			1,229		1,229,000
Madison Park Funding XVII Ltd., Series 2015- 17A, Class B1R, (LIBOR USD 3 Month + 1.75%), 3.57%, 07/21/30(a)(b)			350		316,971
Madison Park Funding XXVI Ltd., Series 2017- 26A, Class AR, (LIBOR USD 3 Month + 1.20%), 2.97%, 07/29/30(a)(b)			1,665		1,564,142
Marble Point CLO XI Ltd.,Series 2017-2A, Class A, (LIBOR USD 3 Month + 1.18%), 3.00%, 12/18/30(a)(b)			430		399,984
Mariner CLO LLC(a)(b):
Series 2015-1A, Class BR2, (LIBOR USD 3 Month + 1.50%), 2.75%, 04/20/29(c)			1,466		1,463,654

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2016-3A, Class CR2, (LIBOR USD 3 Month + 2.05%), 3.86%, 07/23/29	USD		1,125	$	1,125,000
MidOcean Credit CLO III,Series 2014-3A, Class A3A2, (LIBOR USD 3 Month + 0.97%), 2.79%, 04/21/31(a)(b)			480		446,695
Mid-State Trust VII, Series 7, Class A, 6.34%, 12/15/36			1,230		1,257,336
Mountain Hawk II CLO Ltd.,Series 2013-2A, Class BR, (LIBOR USD 3 Month + 1.60%), 3.42%, 07/20/24(a)(b)			716		709,123
MP CLO III Ltd.,Series 2013-1A, Class AR, (LIBOR USD 3 Month + 1.25%), 3.07%, 10/20/30(a)(b)			830		776,822
MP CLO VIII Ltd.(a)(b):
Series 2015-2A, Class AR, (LIBOR USD 3 Month + 0.91%), 2.71%, 10/28/27			1,402		1,356,427
Series 2015-2A, Class BR, (LIBOR USD 3 Month + 1.42%), 3.22%, 10/28/27			1,500		1,305,787
Navient Private Education Refi Loan Trust,Series 2020-A, Class A2B, (LIBOR USD 1 Month + 0.90%), 1.60%, 11/15/68(a)(b)			490		469,350
Neuberger Berman Loan Advisers CLO Ltd.,Series 2017-26A, Class A, (LIBOR USD 3 Month + 1.17%), 2.99%, 10/18/30(a)(b)			1,430		1,343,423
Oaktree CLO,Series 2014-1A, Class A2R, (LIBOR USD 3 Month + 1.85%), 3.56%, 05/13/29(a)(b)			410		353,466
Oaktree CLO Ltd.,Series 2015-1A, Class A1R, (LIBOR USD 3 Month + 0.87%), 2.69%, 10/20/27(a)(b)			500		485,883
OCP CLO Ltd.(a)(b):
Series 2013-4A, Class BRR, (LIBOR USD 3 Month + 1.90%), 3.70%, 04/24/29			945		776,183
Series 2014-5A, Class A1R, (LIBOR USD 3 Month + 1.08%), 2.87%, 04/26/31			140		130,254
Series 2015-10A, Class BR, (LIBOR USD 3 Month + 1.85%), 3.64%, 10/26/27			380		314,971
Series 2016-12A, Class A1R, (LIBOR USD 3 Month + 1.12%), 2.94%, 10/18/28			640		600,924
Series 2017-13A, Class A1A, (LIBOR USD 3 Month + 1.26%), 3.09%, 07/15/30			2,610		2,459,602
Series 2017-14A, Class B, (LIBOR USD 3 Month + 1.95%), 3.64%, 11/20/30			250		203,365
Octagon Investment Partners18-R Ltd.,Series 2018-18A, Class A1A, (LIBOR USD 3 Month + 0.96%), 2.80%, 04/16/31(a)(b)			1,780		1,644,936
Octagon Investment Partners XVI Ltd.,Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.02%), 2.86%, 07/17/30(a)(b)			2,755		2,544,880
Octagon Investment Partners XVII Ltd.,Series 2013-1A, Class A1R2, (LIBOR USD 3 Month + 1.00%), 2.79%, 01/25/31(a)(b)			2,390		2,218,408
Octagon Investment Partners XXIII Ltd.,Series 2015-1A, Class CR, (LIBOR USD 3 Month + 1.85%), 3.68%, 07/15/27(a)(b)			660		544,762
OFSI Fund VI Ltd.,Series 2014-6A, Class A2R, (LIBOR USD 3 Month + 1.13%), 2.96%, 03/20/25(a)(b)			1,034		935,965
OFSI Fund VII Ltd.,Series 2014-7A, Class AR, (LIBOR USD 3 Month + 0.90%), 2.72%, 10/18/26(a)(b)			229		227,955
OHA Loan Funding Ltd.,Series 2013-2A, Class AR, (LIBOR USD 3 Month + 1.04%), 2.72%, 05/23/31(a)(b)			4,495		4,166,710
OneMain Financial Issuance Trust,Series 2019-2A, Class A, 3.14%, 10/14/36(b)			3,140		2,537,070

SCHEDULESOF INVESTMENTS 17

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
OZLM Funding III Ltd.,Series 2013-3A, Class BRR, (LIBOR USD 3 Month + 2.70%), 4.50%, 01/22/29(a)(b)	USD		990	$	814,729
OZLM Funding IV Ltd.,Series 2013-4A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.05%, 10/22/30(a)(b)			9,195		8,610,586
OZLM Ltd.,Series 2019-24A, Class A2A, (LIBOR USD 3 Month + 2.25%), 4.07%, 07/20/32(a)(b)			250		229,750
OZLM VI Ltd.,Series 2014-6A, Class A2AS, (LIBOR USD 3 Month + 1.75%), 3.59%, 04/17/31(a)(b)			250		214,812
OZLM VIII Ltd.,Series 2014-8A, Class BRR, (LIBOR USD 3 Month + 2.20%), 4.04%, 10/17/29(a)(b)			340		278,994
OZLM XIV Ltd.,Series 2015-14A, Class A2AR, (LIBOR USD 3 Month + 1.70%), 3.53%, 01/15/29(a)(b)			2,110		1,942,506
Palmer Square CLO Ltd.(a)(b):
Series 2015-1A, Class A1R2, (LIBOR USD 3 Month + 1.22%), 2.92%, 05/21/29			2,420		2,327,981
Series 2015-1A, Class A2R2, (LIBOR USD 3 Month + 1.65%), 3.35%, 05/21/29			530		458,428
Series 2015-2A, Class A2R2, (LIBOR USD 3 Month + 1.55%), 3.37%, 07/20/30			500		425,609
Series 2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 2.85%, 04/18/31			850		772,319
Series 2018-2A, Class A1A, (LIBOR USD 3 Month + 1.10%), 2.94%, 07/16/31			1,070		1,003,863
Series 2018-3A, Class A2, (LIBOR USD 3 Month + 1.35%), 3.04%, 08/15/26			776		676,823
Palmer Square Loan Funding Ltd.(a)(b):
Series 2018-4A, Class A1, (LIBOR USD 3 Month + 0.90%), 2.59%, 11/15/26			435		420,529
Series 2019-3A, Class A2, (LIBOR USD 3 Month + 1.60%), 3.29%, 08/20/27			440		382,037
Series 2020-1A, Class A2, (LIBOR USD 3 Month + 1.35%), 3.03%, 02/20/28			990		842,729
Series 2020-2A, Class A2, (LIBOR USD 3 Month + 1.55%), 2.66%, 04/20/28			1,270		1,270,000
Park Avenue Institutional Advisers CLO Ltd.(a)(b):
Series 2017-1A, Class A1, (LIBOR USD 3 Month + 1.22%), 2.92%, 11/14/29			1,870		1,785,403
Series 2017-1A, Class A2, (LIBOR USD 3 Month + 1.70%), 3.40%, 11/14/29			780		674,375
Progress Residential Trust, Series 2017-SFR1, Class A, 2.77%, 08/17/34(b)			737		727,358
Race Point IX CLO Ltd.,Series 2015-9A, Class A1AR, (LIBOR USD 3 Month + 1.21%), 3.04%, 10/15/30(a)(b)			720		677,415
Regatta VI Funding Ltd.,Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.08%), 2.90%, 07/20/28(a)(b)			2,360		2,214,242
Riserva CLO Ltd.,Series 2016-3A, Class AR, (LIBOR USD 3 Month + 1.14%), 2.96%, 10/18/28(a)(b)			1,040		1,001,446
Rockford Tower CLO Ltd.(a)(b):
Series 2017-1A, Class AR, (LIBOR USD 3 Month + 1.03%), 2.86%, 04/15/29			2,060		1,959,601
Series 2017-1A, Class BR, (LIBOR USD 3 Month + 1.45%), 3.28%, 04/15/29			960		817,144
Series 2017-1A, Class CR, (LIBOR USD 3 Month + 1.85%), 3.68%, 04/15/29			510		419,058
Series 2017-2A, Class BR, (LIBOR USD 3 Month + 1.50%), 2.75%, 10/15/29			1,695		1,533,975

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2017-2A, Class DR, (LIBOR USD 3 Month + 2.85%), 4.10%, 10/15/29	USD		1,039	$	791,464
Series 2017-3A, Class A, (LIBOR USD 3 Month + 1.19%), 3.01%, 10/20/30			2,907		2,714,594
Series 2018-1A, Class A, (LIBOR USD 3 Month + 1.10%), 2.79%, 05/20/31			297		274,860
Series 2018-2A, Class A, (LIBOR USD 3 Month + 1.16%), 2.98%, 10/20/31			250		231,087
Series 2019-2A, Class B, (LIBOR USD 3 Month + 1.93%), 3.62%, 08/20/32			250		213,260
RomarkWM-R Ltd.,Series 2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 2.85%, 04/20/31(a)(b)			720		658,691
RR 2 Ltd.,Series 2017-2A, Class A2, (LIBOR USD 3 Month + 1.60%), 3.43%, 10/15/29(a)(b)			250		228,929
RR 3 Ltd.,Series 2018-3A, Class A1R2, (LIBOR USD 3 Month + 1.09%), 2.92%, 01/15/30(a)(b)			670		624,737
RR 6 Ltd.,Series 2019-6A, Class A1A, (LIBOR USD 3 Month + 1.25%), 3.08%, 04/15/30(a)(b)			2,140		1,993,974
Silver Creek CLO Ltd.,Series 2014-1A, Class CR, (LIBOR USD 3 Month + 2.30%), 4.12%, 07/20/30(a)(b)			500		410,978
SLM Private Credit Student Loan Trust,Series 2004-B, Class A3, (LIBOR USD 3 Month + 0.33%), 1.07%, 03/15/24(a)			840		826,370
SLM Private Education Loan Trust,Series 2010-C, Class A5, (LIBOR USD 1 Month + 4.75%), 5.45%, 10/15/41(a)(b)			1,670		1,796,525
SMB Private Education Loan Trust,Series 2015-B, Class B, 3.50%, 12/17/40(b)			990		1,012,284
Sound Point CLO XIV Ltd.,Series 2016-3A, Class AR, (LIBOR USD 3 Month + 1.15%), 2.96%, 01/23/29(a)(b)			1,000		962,530
Sound Point CLO XV Ltd.,Series 2017-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 2.96%, 01/23/29(a)(b)			280		267,874
Sound Point CLO XXIII Ltd.,Series 2019-2A, Class A1, (LIBOR USD 3 Month + 1.40%), 3.23%, 04/15/32(a)(b)			4,180		3,901,156
Steele Creek CLO Ltd.,Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.25%), 3.08%, 01/15/30(a)(b)			1,070		1,003,425
Symphony CLO XVII Ltd.,Series 2016-17A, Class AR, (LIBOR USD 3 Month + 0.88%), 2.71%, 04/15/28(a)(b)			880		827,818
Symphony CLO XVIII Ltd.,Series 2016-18A, Class AR, (LIBOR USD 3 Month + 1.15%), 2.96%, 01/23/28(a)(b)			900		858,385
Symphony CLO XXI Ltd.,Series 2019-21A, Class A, (LIBOR USD 3 Month + 1.38%), 3.74%, 07/15/32(a)(b)			860		796,342
THL Credit Wind River CLO Ltd.(a)(b):
Series 2012-1A, Class BR2, (LIBOR USD 3 Month + 1.45%), 3.28%, 01/15/26			280		246,813
Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.05%), 2.88%, 07/15/28			1,120		1,050,965
TIAA CLO III Ltd.,Series 2017-2A, Class A, (LIBOR USD 3 Month + 1.15%), 2.99%, 01/16/31(a)(b)			910		847,651
TICP CLO IX Ltd.,Series 2017-9A, Class A, (LIBOR USD 3 Month + 1.14%), 2.96%, 01/20/31(a)(b)			670		615,054
TICP CLO VI Ltd.(a)(b):
Series 2016-6A, Class AR, (LIBOR USD 3 Month + 1.20%), 3.03%, 01/15/29			480		462,472

18 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2016-6A, Class BR, (LIBOR USD 3 Month + 1.70%), 3.53%, 01/15/29	USD		1,190	$	1,031,382
Towd Point Mortgage Trust(b)(d):
Series 2019-SJ2, Class A2, 4.25%, 11/25/58			3,000		2,981,895
Series 2019-SJ2, Class M1, 4.50%, 11/25/58			3,000		2,995,949
Trestles CLO III Ltd.(a)(b)(c):
Series 2020-3A, Class A1, (LIBOR USD 3 Month + 1.33%), 2.97%, 01/20/33			1,190		1,187,025
Series 2020-3A, Class B1, (LIBOR USD 3 Month + 1.85%), 3.49%, 01/20/33			530		526,025
Union Pacific Railroad Co. Pass-Through Trust,Series 2014-1, 3.23%, 05/14/26			1,392		1,424,137
Venture 32 CLO Ltd.,Series 2018-32A, Class A2A, (LIBOR USD 3 Month + 1.07%), 2.89%, 07/18/31(a)(b)			350		324,925
Venture 35 CLO Ltd.,Series 2018-35A, Class AS, (LIBOR USD 3 Month + 1.15%), 2.95%, 10/22/31(a)(b)			660		620,037
Venture XVIII CLO Ltd.,Series 2014-18A, Class AR, (LIBOR USD 3 Month + 1.22%), 3.05%, 10/15/29(a)(b)			3,230		3,069,729
Voya CLO Ltd.(a)(b):
Series 2014-3A, Class CR, (LIBOR USD 3 Month + 2.65%), 4.44%, 07/25/26			350		265,728
Series 2017-4A, Class A1, (LIBOR USD 3 Month + 1.13%), 2.96%, 10/15/30			1,680		1,576,592
Series 2019-1A, Class AR, (LIBOR USD 3 Month + 1.06%), 2.52%, 04/15/31			2,064		1,968,225
Westcott Park CLO Ltd.,Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.21%), 3.03%, 07/20/28(a)(b)			1,210		1,162,801
YorkCLO-2 Ltd.,Series 2015-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 2.95%, 01/22/31(a)(b)			1,250		1,173,482
YorkCLO-3 Ltd.(a)(b):
Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.25%), 3.07%, 10/20/29			520		494,622
Series 2016-1A, Class BR, (LIBOR USD 3 Month + 1.75%), 3.57%, 10/20/29			930		803,391
YorkCLO-4 Ltd.,Series 2016-2A, Class A1R, (LIBOR USD 3 Month + 1.09%), 2.09%, 04/20/32(a)(b)(c)			1,050		1,050,000
Total Asset-Backed Securities — 6.1% (Cost: $251,544,175)					234,561,163
Corporate Bonds — 35.4%
Aerospace & Defense — 1.4%
Arconic, Inc., 5.40%, 04/15/21			2,830		2,805,521
BAE Systems Holdings, Inc.(b):
2.85%, 12/15/20			728		725,814
3.80%, 10/07/24			962		999,411
3.85%, 12/15/25			5,207		5,294,625
4.75%, 10/07/44			87		89,348
Boeing Co. (The):
3.25%, 02/01/35			87		75,238
3.83%, 03/01/59			195		173,927
General Dynamics Corp.:
3.75%, 05/15/28			905		961,829
4.25%, 04/01/50			475		598,116
Huntington Ingalls Industries, Inc., 4.20%, 05/01/30(b)			2,492		2,582,995
L3Harris Technologies, Inc.:
3.95%, 05/28/24(b)			627		657,103
3.83%, 04/27/25			157		163,339
3.85%, 12/15/26(b)			3,200		3,299,814

Security		Par (000)		Value
Aerospace & Defense (continued)
4.40%, 06/15/28	USD		4,102	$	4,366,558
4.40%, 06/15/28(b)			2,498		2,659,108
4.85%, 04/27/35			82		88,729
Lockheed Martin Corp.:
3.60%, 03/01/35			3,625		3,963,912
4.50%, 05/15/36			230		243,086
3.80%, 03/01/45			521		565,578
Northrop Grumman Corp.:
2.55%, 10/15/22			40		39,989
2.93%, 01/15/25			3,243		3,291,833
3.25%, 01/15/28			4,995		5,190,400
5.25%, 05/01/50			1,179		1,594,347
Raytheon Co.:
7.20%, 08/15/27			630		773,404
7.00%, 11/01/28			2,010		2,610,937
4.20%, 12/15/44			515		577,833
Rockwell Collins, Inc., 3.20%, 03/15/24			1,812		1,862,815
Textron, Inc.:
3.65%, 03/15/27			845		827,438
3.90%, 09/17/29			3,111		3,039,891
United Technologies Corp.:
4.13%, 11/16/28			2,189		2,402,981
5.40%, 05/01/35			105		128,950
4.45%, 11/16/38			463		527,037
					53,181,906
Air Freight & Logistics — 0.2%
FedEx Corp.:
4.20%, 10/17/28			495		513,009
3.10%, 08/05/29			313		307,292
3.88%, 08/01/42			1,070		936,456
5.10%, 01/15/44			120		119,032
4.55%, 04/01/46			142		135,002
4.40%, 01/15/47			19		17,154
United Parcel Service, Inc.:
3.40%, 03/15/29			2,121		2,225,724
2.50%, 09/01/29			744		715,750
5.20%, 04/01/40			2,724		3,337,815
					8,307,234
Airlines — 0.5%
Air Canada Pass-Through Trust(b):
Series 2015-2, Class B, 5.00%, 12/15/23			411		389,340
Series 2017-1, Class B, 3.70%, 01/15/26			9		7,524
Series 2017-1, Class AA, 3.30%, 01/15/30			469		449,998
American Airlines Pass-Through Trust:
Series 2014-1, Class B, 4.38%, 10/01/22			17		16,185
Series 2015-1, Class B, 3.70%, 05/01/23			236		211,539
Series 2015-2, Class B, 4.40%, 09/22/23			1,828		1,547,169
Series 2016-1, Class B, 5.25%, 01/15/24			1,367		1,374,776
Series 2016-2, Class B, 4.38%, 06/15/24(b)			788		698,216
Series 2017-1, Class B, 4.95%, 02/15/25			652		563,910
Series 2017-2, Class B, 3.70%, 10/15/25			407		347,286
Series 2016-3, Class B, 3.75%, 10/15/25			20		15,788
Series 2015-2, Class AA, 3.60%, 09/22/27			341		320,891
Series 2016-1, Class AA, 3.58%, 01/15/28			2,541		2,410,311
Series 2019-1, Class B, 3.85%, 02/15/28			1,197		920,312
Series 2016-2, Class AA, 3.20%, 06/15/28			484		525,743
Series 2016-3, Class AA, 3.00%, 10/15/28			1,017		960,223
Series 2017-1, Class AA, 3.65%, 02/15/29			386		367,628
Series 2017-2, Class AA, 3.35%, 10/15/29			743		738,422
Series 2019-1, Class AA, 3.15%, 02/15/32			1,118		1,006,551
Continental Airlines Pass-Through Trust,Series 2012-1, Class B, 6.25%, 04/11/20			12		11,934
Delta Air Lines Pass-Through Trust,Series 2019-1, Class AA, 3.20%, 04/25/24			990		966,466

SCHEDULESOF INVESTMENTS 19

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Airlines (continued)
Delta Air Lines, Inc., 2.60%, 12/04/20	USD		30	$	28,651
United Airlines Pass-Through Trust:
Series 2014-1, Class B, 4.75%, 04/11/22			19		18,370
Series 2014-2, Class B, 4.63%, 09/03/22			158		147,825
Series 2016-2, Class B, 3.65%, 10/07/25			98		91,518
Series 2016-1, Class B, 3.65%, 01/07/26			133		107,397
Series 2018-1, Class B, 4.60%, 03/01/26			518		449,039
Series 2015-1, Class AA, 3.45%, 12/01/27			1,001		1,004,447
Series 2019-2, Class B, 3.50%, 05/01/28			1,193		997,476
Series 2016-1, Class AA, 3.10%, 07/07/28			59		54,764
Series 2016-2, Class AA, 2.88%, 10/07/28			489		454,187
Series 2018-1, Class AA, 3.50%, 03/01/30			597		580,158
Series 2019-1, Class AA, 4.15%, 08/25/31			683		708,008
Series 2019-2, Class AA, 2.70%, 05/01/32			885		796,309
US Airways Pass-Through Trust:
Series 2012-2, Class B, 6.75%, 06/03/21			34		32,638
Series 2013-1, Class B, 5.38%, 11/15/21			141		134,370
					19,455,369
Auto Components — 0.0%
Aptiv plc, 5.40%, 03/15/49			160		139,019
Lear Corp., 5.25%, 05/15/49			85		73,777
					212,796
Automobiles — 0.5%
Daimler Finance North America LLC(b):
3.10%, 05/04/20			2,575		2,570,525
2.30%, 02/12/21			3,005		2,927,246
3.35%, 05/04/21			3,060		3,029,027
3.40%, 02/22/22			202		196,351
General Motors Co.:
6.60%, 04/01/36			645		560,915
6.25%, 10/02/43			901		711,520
Hyundai Capital America(b):
2.55%, 04/03/20			7,145		7,142,410
3.95%, 02/01/22			290		288,369
2.38%, 02/10/23			3,260		3,121,808
					20,548,171
Banks — 9.0%
ABN AMRO Bank NV, 2.65%, 01/19/21(b)			2,120		2,116,184
Australia & New Zealand Banking Group Ltd., 2.63%, 11/09/22			790		802,671
Banco Internacional del Peru SAA Interbank, 3.25%, 10/04/26(b)			360		321,975
Banco Santander SA:
2.71%, 06/27/24			2,800		2,746,368
3.31%, 06/27/29			3,600		3,533,735
Bank of America Corp.:
(LIBOR USD 3 Month + 0.66%), 2.37%, 07/21/21(a)			1,170		1,169,210
(LIBOR USD 3 Month + 0.63%), 2.33%, 10/01/21(a)			13,138		13,118,577
(LIBOR USD 3 Month + 0.37%), 2.74%, 01/23/22(a)			1,534		1,538,341
(LIBOR USD 3 Month + 0.63%), 3.50%, 05/17/22(a)			9,274		9,384,192
(LIBOR USD 3 Month + 1.02%), 2.88%, 04/24/23(a)			417		418,699
(LIBOR USD 3 Month + 0.93%), 2.82%, 07/21/23(a)			975		979,008
(LIBOR USD 3 Month + 0.94%), 3.86%, 07/23/24(a)			71		74,286
4.20%, 08/26/24			1,920		2,042,140
4.00%, 01/22/25			443		466,209
(LIBOR USD 3 Month + 0.97%), 3.46%, 03/15/25(a)			749		772,379

Security		Par (000)		Value
Banks (continued)
Series L, 3.95%, 04/21/25	USD		380	$	399,490
3.88%, 08/01/25			247		262,501
(LIBOR USD 3 Month + 1.09%), 3.09%, 10/01/25(a)			18		18,047
(LIBOR USD 3 Month + 0.64%), 2.01%, 02/13/26(a)			1,097		1,073,905
4.45%, 03/03/26			2,240		2,412,562
3.50%, 04/19/26			29		30,802
(LIBOR USD 3 Month + 1.06%), 3.56%, 04/23/27(a)			3,805		3,981,649
(LIBOR USD 3 Month + 1.58%), 3.82%, 01/20/28(a)			2,927		3,033,400
Series FF, (LIBOR USD 3 Month + 2.93%), 5.87%(a)(e)			1,895		1,920,279
(LIBOR USD 3 Month + 1.51%), 3.71%, 04/24/28(a)			7,592		7,762,604
(LIBOR USD 3 Month + 1.37%), 3.59%, 07/21/28(a)			908		928,502
(LIBOR USD 3 Month + 1.04%), 3.42%, 12/20/28(a)			8,619		8,890,826
(LIBOR USD 3 Month + 1.07%), 3.97%, 03/05/29(a)			2,586		2,700,653
(LIBOR USD 3 Month + 1.31%), 4.27%, 07/23/29(a)			1,101		1,190,250
(LIBOR USD 3 Month + 0.99%), 2.50%, 02/13/31(a)			220		212,724
(LIBOR USD 3 Month + 3.15%), 4.08%, 03/20/51(a)			169		193,452
Bank of Montreal:
1.90%, 08/27/21			388		388,904
2.90%, 03/26/22			451		456,778
Series E, 3.30%, 02/05/24			943		973,037
2.50%, 06/28/24			1,116		1,090,602
Barclays plc:
4.38%, 01/12/26			495		497,475
4.34%, 01/10/28			390		396,449
(LIBOR USD 3 Month + 1.90%), 4.97%, 05/16/29(a)			1,729		1,849,132
BBVA Bancomer SA, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.31%), 5.87%, 09/13/34(a)(b)			604		488,863
BNP Paribas SA(b):
3.50%, 03/01/23			5,101		5,116,942
3.80%, 01/10/24			1,850		1,907,265
3.38%, 01/09/25			605		599,688
(LIBOR USD 3 Month + 1.11%), 2.82%, 11/19/25(a)			4,091		4,040,958
(SOFR + 1.51%), 3.05%, 01/13/31(a)			3,482		3,255,959
Citibank NA, 3.65%, 01/23/24			1,642		1,719,402
Citigroup, Inc.:
(LIBOR USD 3 Month + 0.95%), 2.88%, 07/24/23(a)			1,360		1,370,457
4.40%, 06/10/25			1,241		1,297,569
3.40%, 05/01/26			550		573,033
4.45%, 09/29/27			1,342		1,401,081
(LIBOR USD 3 Month + 1.56%), 3.89%, 01/10/28(a)			3,501		3,600,869
(LIBOR USD 3 Month + 1.39%), 3.67%, 07/24/28(a)			4,243		4,392,725
(LIBOR USD 3 Month + 1.15%), 3.52%, 10/27/28(a)			1,987		1,987,789
(SOFR + 3.91%), 4.41%, 03/31/31(a)			2,149		2,361,059
Credit Suisse Group Funding Guernsey Ltd.:
3.80%, 09/15/22			4,560		4,620,420
3.80%, 06/09/23			1,243		1,256,547

20 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
Danske Bank A/S(b):
5.00%, 01/12/22	USD		7,968	$	8,181,840
(LIBOR USD 3 Month + 1.25%), 3.00%, 09/20/22(a)			1,500		1,493,258
3.88%, 09/12/23			1,540		1,519,962
5.38%, 01/12/24			5,245		5,407,865
Discover Bank, 4.65%, 09/13/28			6,500		6,461,390
Fifth Third Bancorp, 3.65%, 01/25/24			470		488,684
Grupo Aval Ltd.:
4.75%, 09/26/22			232		222,140
4.38%, 02/04/30(b)			845		678,282
HSBC Holdings plc:
3.40%, 03/08/21			318		319,748
(LIBOR USD 3 Month + 1.06%), 3.26%, 03/13/23(a)			250		249,772
(LIBOR USD 3 Month + 1.35%), 4.29%, 09/12/26(a)			1,550		1,546,671
(LIBOR USD 3 Month + 1.55%), 4.04%, 03/13/28(a)			2,686		2,731,459
(LIBOR USD 3 Month + 1.53%), 4.58%, 06/19/29(a)			482		510,751
(LIBOR USD 3 Month + 1.61%), 3.97%, 05/22/30(a)			3,700		3,790,037
ING Groep NV:
4.10%, 10/02/23			10,709		10,990,626
4.63%, 01/06/26(b)			2,024		2,132,789
JPMorgan Chase & Co.:
4.25%, 10/15/20			69		69,787
2.55%, 03/01/21			2,894		2,900,921
4.63%, 05/10/21			4,000		4,110,731
2.40%, 06/07/21			234		234,482
2.30%, 08/15/21			824		823,148
4.35%, 08/15/21			841		862,535
(LIBOR USD 3 Month + 0.61%), 3.51%, 06/18/22(a)			12,423		12,624,015
2.97%, 01/15/23			2,493		2,533,386
(LIBOR USD 3 Month + 0.70%), 3.21%, 04/01/23(a)			3,650		3,712,836
(LIBOR USD 3 Month + 0.94%), 2.78%, 04/25/23(a)			2,055		2,081,493
3.38%, 05/01/23			42		43,900
2.70%, 05/18/23			744		763,570
3.88%, 02/01/24			60		64,257
(LIBOR USD 3 Month + 0.73%), 3.56%, 04/23/24(a)			861		901,018
(LIBOR USD 3 Month + 0.89%), 3.80%, 07/23/24(a)			2,839		2,971,554
3.88%, 09/10/24			423		446,034
(LIBOR USD 3 Month + 1.00%), 4.02%, 12/05/24(a)			8,423		8,924,811
(LIBOR USD 3 Month + 1.16%), 3.22%, 03/01/25(a)			3,120		3,239,262
(SOFR + 1.16%), 2.30%, 10/15/25(a)			3,395		3,378,053
(LIBOR USD 3 Month + 1.25%), 3.96%, 01/29/27(a)			11,575		12,447,928
(LIBOR USD 3 Month + 1.34%), 3.78%, 02/01/28(a)			5,696		6,028,215
(LIBOR USD 3 Month + 1.38%), 3.54%, 05/01/28(a)			5,809		5,977,794
(LIBOR USD 3 Month + 0.95%), 3.51%, 01/23/29(a)			535		550,795
(LIBOR USD 3 Month + 1.26%), 4.20%, 07/23/29(a)			971		1,065,624
(LIBOR USD 3 Month + 1.16%), 3.70%, 05/06/30(a)			255		273,471
(SOFR + 3.79%), 4.49%, 03/24/31(a)			1,039		1,201,082

Security		Par (000)		Value
Banks (continued)
(LIBOR USD 3 Month + 1.36%), 3.88%, 07/24/38(a)	USD		427	$	476,650
KeyBank NA, 3.35%, 06/15/21			1,075		1,085,259
KeyCorp:
4.15%, 10/29/25			139		145,437
4.10%, 04/30/28			498		524,035
2.55%, 10/01/29			397		354,402
Lloyds Banking Group plc:
3.90%, 03/12/24			202		204,418
3.75%, 01/11/27			1,282		1,294,215
(LIBOR USD 3 Month + 1.21%), 3.57%, 11/07/28(a)			825		818,584
Mitsubishi UFJ Financial Group, Inc.:
3.00%, 02/22/22			1,276		1,300,160
3.46%, 03/02/23			7,732		7,931,463
3.76%, 07/26/23			7,264		7,507,824
Mizuho Financial Group, Inc.:
2.63%, 04/12/21(b)			3,348		3,348,552
2.27%, 09/13/21			242		239,235
2.95%, 02/28/22			21,164		21,237,222
(LIBOR USD 3 Month + 1.10%), 2.55%, 09/13/25(a)			2,440		2,409,592
(LIBOR USD 3 Month + 0.83%), 2.23%, 05/25/26(a)			5,439		5,329,453
3.66%, 02/28/27			203		203,731
(LIBOR USD 3 Month + 1.13%), 3.15%, 07/16/30(a)			355		338,625
(LIBOR USD 3 Month + 1.31%), 2.87%, 09/13/30(a)			1,127		1,009,394
Royal Bank of Scotland Group plc, (LIBOR USD 3 Month + 1.48%), 3.50%, 05/15/23(a)			457		451,300
Santander UK Group Holdings plc, 2.88%, 08/05/21			2,095		2,069,168
Standard Chartered plc, (LIBOR USD 3 Month + 1.08%), 3.89%, 03/15/24(a)(b)			654		663,645
Sumitomo Mitsui Financial Group, Inc.:
2.70%, 07/16/24			3,948		3,945,011
2.35%, 01/15/25			2,007		1,992,839
Svenska Handelsbanken AB, 3.35%, 05/24/21			290		293,485
Truist Financial Corp., 4.00%, 05/01/25			75		78,992
US Bancorp:
2.95%, 07/15/22			364		367,909
2.40%, 07/30/24			1,592		1,591,295
3.10%, 04/27/26			225		227,513
US Bank NA, (LIBOR USD 3 Month + 0.29%), 3.10%, 05/21/21(a)			745		746,219
Wells Fargo & Co.:
4.60%, 04/01/21			4,700		4,802,034
2.10%, 07/26/21			5		4,983
3.50%, 03/08/22			2,592		2,642,377
2.63%, 07/22/22			3,533		3,544,457
3.75%, 01/24/24			4,529		4,786,365
3.55%, 09/29/25			3,060		3,216,118
(LIBOR USD 3 Month + 0.83%), 2.41%, 10/30/25(a)			2,143		2,111,304
3.00%, 04/22/26			4,111		4,182,720
3.00%, 10/23/26			541		552,979
(LIBOR USD 3 Month + 1.17%), 3.20%, 06/17/27(a)			431		444,117
(LIBOR USD 3 Month + 1.31%), 3.58%, 05/22/28(a)			4,119		4,188,750
5.61%, 01/15/44			69		82,604
Wells Fargo Bank NA(a):
(LIBOR USD 3 Month + 0.49%), 3.33%, 07/23/21			3,180		3,185,317

SCHEDULESOF INVESTMENTS 21

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
(LIBOR USD 3 Month + 0.61%), 2.90%, 05/27/22	USD		525	$	524,797
					347,549,148
Beverages — 0.7%
Anheuser-Busch Cos. LLC, 4.70%, 02/01/36			8,006		8,384,217
Anheuser-Busch InBev Worldwide, Inc.:
3.50%, 01/12/24			1,300		1,358,737
4.00%, 04/13/28			468		493,411
4.75%, 01/23/29			10,451		11,536,334
4.90%, 01/23/31			385		426,691
4.38%, 04/15/38			535		538,563
5.45%, 01/23/39			259		298,041
Embotelladora Andina SA, 3.95%, 01/21/50(b)			436		366,240
Molson Coors Beverage Co.:
5.00%, 05/01/42			481		466,317
4.20%, 07/15/46			298		266,384
PepsiCo, Inc.:
4.45%, 04/14/46			17		21,969
3.45%, 10/06/46			503		564,609
4.00%, 05/02/47			388		465,132
					25,186,645
Biotechnology — 0.6%
AbbVie, Inc.:
3.20%, 05/14/26			609		605,421
2.95%, 11/21/26(b)			925		929,243
3.20%, 11/21/29(b)			3,250		3,263,350
4.50%, 05/14/35			4,184		4,745,847
4.70%, 05/14/45			191		214,529
4.88%, 11/14/48			1,159		1,344,585
4.25%, 11/21/49(b)			85		90,299
Amgen, Inc.:
2.20%, 02/21/27			465		460,327
2.45%, 02/21/30			1,811		1,781,195
4.40%, 05/01/45			2,679		3,144,792
4.66%, 06/15/51			8		10,060
Gilead Sciences, Inc.:
3.50%, 02/01/25			3,082		3,252,008
3.65%, 03/01/26			101		109,218
4.60%, 09/01/35			449		556,078
4.80%, 04/01/44			227		291,206
4.50%, 02/01/45			353		429,083
4.75%, 03/01/46			237		302,654
					21,529,895
Building Products — 0.0%
Johnson Controls International plc:
4.63%, 07/02/44(f)			302		294,737
5.13%, 09/14/45			10		11,550
Owens Corning:
3.95%, 08/15/29			532		502,208
4.30%, 07/15/47			290		247,526
					1,056,021
Capital Markets — 2.0%
Bank of New York Mellon Corp. (The)(a):
Series E, (LIBOR USD 3 Month + 3.42%), 4.95%(e)			705		613,350
(LIBOR USD 3 Month + 1.07%), 3.44%, 02/07/28			1,555		1,574,576
Charles Schwab Corp. (The), 3.20%, 03/02/27			725		716,334
Credit Suisse Group AG, (LIBOR USD 3 Month + 1.20%), 3.00%, 12/14/23(a)(b)			1,682		1,637,874
Deutsche Bank AG:
2.70%, 07/13/20			3,770		3,695,984

Security		Par (000)		Value
Capital Markets (continued)
2.95%, 08/20/20	USD		265	$	262,604
E*TRADE Financial Corp., 3.80%, 08/24/27			165		159,772
Goldman Sachs Group, Inc. (The):
5.25%, 07/27/21			408		421,087
2.35%, 11/15/21			2,637		2,633,783
5.75%, 01/24/22			916		970,465
3.63%, 02/20/24			1,490		1,553,633
4.00%, 03/03/24			1,178		1,231,232
3.85%, 07/08/24			42		43,790
3.50%, 01/23/25			2,631		2,689,776
3.50%, 04/01/25			3,040		3,107,565
3.75%, 05/22/25			678		701,831
(LIBOR USD 3 Month + 1.20%), 3.27%, 09/29/25(a)			951		966,483
3.75%, 02/25/26			357		368,815
3.85%, 01/26/27			2,384		2,458,094
(LIBOR USD 3 Month + 1.51%), 3.69%, 06/05/28(a)			5,319		5,461,342
Huarong Finance 2019 Co. Ltd., 4.50%, 05/29/29			300		306,844
Intercontinental Exchange, Inc.:
4.00%, 10/15/23			55		57,617
3.75%, 12/01/25			1,748		1,845,870
3.10%, 09/15/27			28		28,408
3.75%, 09/21/28			1,136		1,207,974
Moody’s Corp.:
2.75%, 12/15/21			105		104,234
4.88%, 02/15/24			316		341,544
3.25%, 01/15/28			274		277,437
Morgan Stanley:
3.75%, 02/25/23			3,016		3,126,666
(LIBOR USD 3 Month + 0.85%), 3.74%, 04/24/24(a)			1,566		1,603,786
4.00%, 07/23/25			2,879		3,034,630
3.88%, 01/27/26			600		640,871
3.13%, 07/27/26			481		493,250
3.63%, 01/20/27			3,548		3,796,050
(LIBOR USD 3 Month + 1.34%), 3.59%, 07/22/28(a)			3,197		3,246,150
(LIBOR USD 3 Month + 1.63%), 4.43%, 01/23/30(a)			1,950		2,164,794
Nomura Holdings, Inc., 3.10%, 01/16/30			627		590,722
Northern Trust Corp., 3.15%, 05/03/29			628		649,718
State Street Corp.:
2.65%, 05/19/26			803		815,009
(SOFR + 2.65%), 3.15%, 03/30/31(a)(b)			29		29,665
UBS Group AG(b):
2.95%, 09/24/20			3,935		3,941,593
(LIBOR USD 3 Month + 0.95%), 2.86%, 08/15/23(a)			8,562		8,490,094
(USD Swap Semi 5 Year + 4.34%), 7.00%(a)(e)			3,815		3,586,100
4.13%, 09/24/25			4,040		4,196,453
4.13%, 04/15/26			1,318		1,335,198
					77,179,067
Chemicals — 0.4%
Air Liquide Finance SA, 2.50%, 09/27/26(b)			239		233,759
Dow Chemical Co. (The):
9.00%, 04/01/21			915		960,225
3.15%, 05/15/24			28		25,590
4.55%, 11/30/25			45		46,800
3.63%, 05/15/26			1,832		1,792,557
1.88%, 03/15/40	EUR		2,150		1,885,985
DuPont de Nemours, Inc., 4.49%, 11/15/25	USD		4,722		5,085,296
LYB International Finance BV, 4.88%, 03/15/44			932		1,005,617

22 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Chemicals (continued)
Methanex Corp., 5.25%, 12/15/29	USD		626	$	468,734
SABIC Capital II BV, 4.00%, 10/10/23(b)			523		517,770
Sherwin-Williams Co. (The):
2.95%, 08/15/29			2,005		1,966,160
4.00%, 12/15/42			538		562,457
3.30%, 05/15/50			20		18,725
					14,569,675
Commercial Services & Supplies — 0.6%
RELX Capital, Inc.:
3.50%, 03/16/23			5,137		5,348,645
4.00%, 03/18/29			2,648		2,732,994
Republic Services, Inc.:
4.75%, 05/15/23			1,958		2,067,597
2.90%, 07/01/26			824		834,349
3.38%, 11/15/27			312		316,728
3.95%, 05/15/28			3,401		3,677,019
Waste Management, Inc.:
2.95%, 06/15/24			4,392		4,465,122
3.13%, 03/01/25			145		150,124
4.00%, 07/15/39			3,069		3,335,499
					22,928,077
Communications Equipment — 0.1%
Motorola Solutions, Inc.:
4.60%, 02/23/28			56		57,070
4.60%, 05/23/29			3,056		3,082,285
5.50%, 09/01/44			2,055		2,071,673
					5,211,028
Construction Materials — 0.0%
Inversiones CMPC SA, 4.38%, 05/15/23(b)			200		192,000
Consumer Finance — 0.9%
American Express Co.:
2.50%, 08/01/22			2,570		2,586,661
3.40%, 02/27/23			220		225,393
3.70%, 08/03/23			586		607,733
3.40%, 02/22/24			5,830		6,079,838
2.50%, 07/30/24			1,550		1,567,909
4.20%, 11/06/25			1,284		1,405,233
3.13%, 05/20/26			1,557		1,613,167
American Express Credit Corp.:
Series F, 2.60%, 09/14/20			11		10,994
2.25%, 05/05/21			973		975,561
2.70%, 03/03/22			834		832,108
Capital One Financial Corp.:
3.45%, 04/30/21			397		397,691
3.90%, 01/29/24			4,446		4,454,474
Discover Financial Services, 4.10%, 02/09/27			987		967,208
Ford Motor Credit Co. LLC:
3.20%, 01/15/21			694		670,577
3.34%, 03/18/21			656		629,629
2.98%, 08/03/22			1,104		1,026,720
4.13%, 08/04/25			467		414,229
General Motors Financial Co., Inc.:
5.10%, 01/17/24			1,303		1,196,557
4.00%, 01/15/25			2,312		2,054,432
2.90%, 02/26/25			408		352,686
4.35%, 04/09/25			981		851,122
Hyundai Capital Services, Inc., 3.00%, 08/29/22(b)			1,650		1,639,688
Synchrony Financial, 4.38%, 03/19/24			619		608,924
Toyota Motor Credit Corp.:
2.63%, 01/10/23			517		517,397
3.38%, 04/01/30			1,154		1,165,275
					32,851,206

Security		Par (000)		Value
Containers & Packaging — 0.0%
International Paper Co.:
5.00%, 09/15/35	USD		21	$	24,047
6.00%, 11/15/41			603		775,215
4.80%, 06/15/44			33		32,702
4.35%, 08/15/48			569		550,227
					1,382,191
Diversified Consumer Services — 0.4%
American University (The), 3.67%, 04/01/49			1,422		1,529,836
Claremont Mckenna College, Series 2019, 3.38%, 01/01/50			3,498		3,622,013
George Washington University (The):
4.87%, 09/15/45			2,500		3,114,348
Series 2018, 4.13%, 09/15/48			660		656,391
Massachusetts Institute of Technology, 3.96%, 07/01/38			1,866		2,056,401
University of Southern California, 3.03%, 10/01/39			6,056		5,830,722
					16,809,711
Diversified Financial Services — 0.2%
Equitable Holdings, Inc., 3.90%, 04/20/23			210		208,123
GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/35			2,245		2,395,596
MDGH - GMTN BV(b):
2.50%, 11/07/24			1,112		1,073,080
2.88%, 11/07/29			372		351,175
ORIX Corp., 2.90%, 07/18/22			941		965,269
Shell International Finance BV:
3.88%, 11/13/28			952		1,039,494
2.38%, 11/07/29			312		307,666
3.63%, 08/21/42			189		193,521
4.38%, 05/11/45			1,795		2,073,447
4.00%, 05/10/46			73		81,060
					8,688,431
Diversified Telecommunication Services — 1.1%
AT&T, Inc.:
3.40%, 06/15/22(f)			194		197,175
3.00%, 06/30/22			50		50,435
0.00%, 11/27/22(b)(g)			5,000		4,636,638
3.80%, 02/15/27			304		317,228
4.25%, 03/01/27			581		617,120
4.30%, 02/15/30			921		989,044
4.50%, 05/15/35			6,053		6,451,118
3.15%, 09/04/36	EUR		1,100		1,235,861
6.00%, 08/15/40	USD		994		1,215,094
5.35%, 09/01/40			218		251,534
5.15%, 03/15/42			338		388,566
4.80%, 06/15/44			1,289		1,405,593
4.35%, 06/15/45			610		644,186
4.85%, 07/15/45			1,326		1,410,476
5.15%, 11/15/46			529		621,323
Deutsche Telekom International Finance BV, 3.60%, 01/19/27(b)			518		535,704
Verizon Communications, Inc.:
(LIBOR USD 3 Month + 0.55%), 2.23%, 05/22/20(a)			4,232		4,231,385
4.13%, 03/16/27			7,087		7,879,622
3.00%, 03/22/27			845		890,224
4.50%, 08/10/33			454		535,136
4.40%, 11/01/34			1,015		1,184,649
4.27%, 01/15/36			4,437		5,153,265
5.25%, 03/16/37			810		1,028,798
2.88%, 01/15/38	EUR		1,000		1,120,249
4.00%, 03/22/50	USD		1,135		1,342,291
					44,332,714

SCHEDULESOF INVESTMENTS 23

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Electric Utilities — 2.5%
Adani Electricity Mumbai Ltd., 3.95%, 02/12/30(b)	USD		337	$	277,183
AEP Texas, Inc.:
3.95%, 06/01/28			2,580		2,696,053
Series G, 4.15%, 05/01/49			232		237,953
Series H, 3.45%, 01/15/50			551		479,600
AEP Transmission Co. LLC:
3.75%, 12/01/47			110		109,899
4.25%, 09/15/48			490		505,190
3.80%, 06/15/49			1,080		1,162,092
3.15%, 09/15/49			800		803,197
Series M, 3.65%, 04/01/50			1,004		1,034,086
Alabama Power Co.:
Series 13-A, 3.55%, 12/01/23			190		196,132
6.00%, 03/01/39			80		103,393
3.75%, 03/01/45			1,767		1,817,528
Series B, 3.70%, 12/01/47			387		403,010
Series A, 4.30%, 07/15/48			361		407,612
3.45%, 10/01/49			863		876,870
Baltimore Gas & Electric Co.:
3.50%, 08/15/46			1,218		1,215,803
3.75%, 08/15/47			557		594,286
4.25%, 09/15/48			230		262,555
3.20%, 09/15/49			578		525,127
CenterPoint Energy Houston Electric LLC, 3.95%, 03/01/48			448		500,074
Commonwealth Edison Co., Series 122, 2.95%, 08/15/27			400		392,310
Dayton Power & Light Co. (The), 3.95%, 06/15/49(b)			1,358		1,369,369
DTE Electric Co.:
Series A, 4.05%, 05/15/48			1,505		1,690,639
3.95%, 03/01/49			95		102,780
Duke Energy Carolinas LLC:
3.05%, 03/15/23			246		251,890
3.95%, 11/15/28			326		360,680
2.45%, 08/15/29			1,365		1,337,443
2.45%, 02/01/30			1,845		1,832,104
4.25%, 12/15/41			45		50,980
3.75%, 06/01/45			110		120,422
3.88%, 03/15/46			480		539,046
3.70%, 12/01/47			760		827,782
3.95%, 03/15/48			20		22,512
3.20%, 08/15/49			803		802,476
Duke Energy Florida LLC:
3.80%, 07/15/28			861		926,065
2.50%, 12/01/29			3,536		3,469,933
6.40%, 06/15/38			730		1,061,792
3.40%, 10/01/46			570		584,354
4.20%, 07/15/48			630		705,674
Duke Energy Ohio, Inc., 3.65%, 02/01/29			3,036		3,254,225
Duke Energy Progress LLC:
3.00%, 09/15/21			395		401,345
3.25%, 08/15/25			2,163		2,305,360
3.70%, 09/01/28			2,285		2,442,245
3.45%, 03/15/29			905		956,587
4.10%, 03/15/43			655		723,907
4.20%, 08/15/45			580		660,000
Edison International:
2.40%, 09/15/22			265		255,795
3.13%, 11/15/22			8		7,852
3.55%, 11/15/24			1,317		1,307,976
Entergy Corp., 2.95%, 09/01/26			30		28,291
Entergy Louisiana LLC:
5.40%, 11/01/24			340		385,070

Security		Par (000)		Value
Electric Utilities (continued)
4.20%, 09/01/48	USD		2,035	$	2,282,960
2.90%, 03/15/51			11		9,638
Eversource Energy, Series L, 2.90%, 10/01/24			1,929		1,824,912
Exelon Corp.:
5.10%, 06/15/45			36		38,799
4.45%, 04/15/46			310		310,309
FirstEnergy Corp.:
2.65%, 03/01/30			1,239		1,155,000
Series C, 3.40%, 03/01/50			1,017		960,012
FirstEnergy Transmission LLC(b):
4.35%, 01/15/25			3,408		3,546,020
5.45%, 07/15/44			267		300,687
4.55%, 04/01/49			1,202		1,199,789
Florida Power & Light Co.:
(LIBOR USD 3 Month + 0.40%), 2.14%, 05/06/22(a)			5,710		5,384,825
2.75%, 06/01/23			642		663,278
3.25%, 06/01/24			80		81,264
2.85%, 04/01/25			833		868,485
3.95%, 03/01/48			1,837		2,189,327
3.15%, 10/01/49			1,715		1,776,375
ITC Holdings Corp., 2.70%, 11/15/22			1,194		1,183,909
MidAmerican Energy Co.:
3.10%, 05/01/27			90		92,491
3.65%, 04/15/29			1,954		2,096,331
4.25%, 07/15/49			599		695,970
3.15%, 04/15/50			920		935,139
Mid-Atlantic Interstate Transmission LLC, 4.10%, 05/15/28(b)			196		206,056
Northern States Power Co.:
3.40%, 08/15/42			935		865,393
4.00%, 08/15/45			669		684,585
2.90%, 03/01/50			755		718,207
NSTAR Electric Co.:
3.20%, 05/15/27			282		284,364
3.25%, 05/15/29			140		144,292
Ohio Power Co.:
Series G, 6.60%, 02/15/33			1,165		1,615,259
4.00%, 06/01/49			588		605,971
Oncor Electric Delivery Co. LLC:
3.70%, 11/15/28			1,490		1,594,231
5.75%, 03/15/29			100		121,941
4.55%, 12/01/41			188		215,511
3.80%, 09/30/47			565		565,395
3.80%, 06/01/49			260		273,636
3.10%, 09/15/49			749		726,455
Public Service Electric & Gas Co.:
3.00%, 05/15/25			3		3,082
3.65%, 09/01/28			1,440		1,520,409
3.20%, 05/15/29			110		116,496
5.50%, 03/01/40			120		157,398
3.60%, 12/01/47			9		9,646
Southern California Edison Co., 2.25%, 06/01/30			702		633,808
Tampa Electric Co.:
4.30%, 06/15/48			267		285,405
4.45%, 06/15/49			892		964,406
3.63%, 06/15/50			230		227,508
Trans-Allegheny Interstate Line Co., 3.85%, 06/01/25(b)			5,014		5,257,495
Virginia Electric & Power Co.:
Series C, 2.75%, 03/15/23			1,961		1,975,288
Series A, 3.15%, 01/15/26			32		33,269
Series A, 3.50%, 03/15/27			1,449		1,516,192
4.00%, 01/15/43			532		563,799

24 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Electric Utilities (continued)
Series B, 4.20%, 05/15/45	USD		679	$	737,310
Series B, 3.80%, 09/15/47			208		211,049
4.60%, 12/01/48			110		124,855
3.30%, 12/01/49			216		215,674
Vistra Operations Co. LLC, 4.30%, 07/15/29(b)			2,948		2,613,727
					96,768,179
Electronic Equipment, Instruments & Components — 0.1%
Corning, Inc.:
3.70%, 11/15/23			180		190,178
4.38%, 11/15/57			1,146		1,183,047
Tyco Electronics Group SA:
3.45%, 08/01/24			215		219,460
3.13%, 08/15/27			464		478,975
					2,071,660
Entertainment — 0.1%
NBCUniversal Media LLC, 5.95%, 04/01/41			1,401		1,922,385
Walt Disney Co. (The):
5.40%, 10/01/43			138		184,119
4.75%, 09/15/44			250		313,871
2.75%, 09/01/49			329		323,594
4.70%, 03/23/50			1,672		2,184,898
					4,928,867
Equity Real Estate Investment Trusts (REITs) — 0.7%
American Tower Corp.:
2.25%, 01/15/22			389		379,781
3.00%, 06/15/23			56		56,074
2.75%, 01/15/27			413		398,466
3.13%, 01/15/27			13		12,689
3.95%, 03/15/29			805		836,750
3.80%, 08/15/29			1,471		1,489,093
Boston Properties LP:
3.85%, 02/01/23			765		768,205
3.13%, 09/01/23			1,096		1,094,972
CC Holdings GS V LLC, 3.85%, 04/15/23			463		461,539
Crown Castle International Corp.:
3.40%, 02/15/21			20		20,135
2.25%, 09/01/21			40		39,446
4.88%, 04/15/22			88		90,458
3.15%, 07/15/23			820		823,057
3.20%, 09/01/24			3,874		3,861,919
4.45%, 02/15/26			331		350,798
3.70%, 06/15/26			1,283		1,310,986
3.80%, 02/15/28			721		737,051
3.10%, 11/15/29			5,243		5,022,494
5.20%, 02/15/49			363		402,208
4.15%, 07/01/50			321		317,469
Equinix, Inc., 2.63%, 11/18/24			2,835		2,703,910
GLP Capital LP, 5.25%, 06/01/25			2,013		1,862,025
National Retail Properties, Inc., 2.50%, 04/15/30			931		828,290
Prologis Euro Finance LLC, 1.50%, 09/10/49 .	EUR		800		640,357
Realty Income Corp., 3.00%, 01/15/27	USD		648		613,806
Service Properties Trust, 4.35%, 10/01/24			990		726,706
					25,848,684
Food & Staples Retailing — 0.2%
Alimentation Couche-Tard, Inc., 3.55%, 07/26/27(b)			4,573		4,472,968
Walmart, Inc.:
2.85%, 07/08/24			1,351		1,420,286
3.55%, 06/26/25			702		766,181
3.70%, 06/26/28			454		509,497
3.25%, 07/08/29			1,953		2,146,517
					9,315,449

Security		Par (000)		Value
Food Products — 0.0%
Campbell Soup Co., 8.88%, 05/01/21	USD		560	$	586,267
General Mills, Inc., 2.88%, 04/15/30			85		84,830
					671,097
Gas Utilities — 0.0%
Atmos Energy Corp., 3.38%, 09/15/49			460		444,274
Dominion Energy Gas Holdings LLC:
4.80%, 11/01/43			358		362,569
4.60%, 12/15/44			198		197,635
Piedmont Natural Gas Co., Inc., 3.64%, 11/01/46			92		90,903
					1,095,381
Health Care Equipment & Supplies — 0.3%
Abbott Laboratories, 3.75%, 11/30/26			2,987		3,333,499
Baxter International, Inc., 1.70%, 08/15/21			110		109,659
Becton Dickinson and Co., 3.30%, 03/01/23			1,065		1,073,548
Boston Scientific Corp.:
3.45%, 03/01/24			2,985		3,062,179
4.55%, 03/01/39			242		265,765
Covidien International Finance SA, 2.95%, 06/15/23			710		740,648
DH Europe Finance II SARL:
1.35%, 09/18/39	EUR		450		407,784
1.80%, 09/18/49			800		703,527
Medtronic Global Holdings SCA, 1.75%, 07/02/49			800		756,150
					10,452,759
Health Care Providers & Services — 1.7%
Aetna, Inc., 4.50%, 05/15/42	USD		745		775,079
Anthem, Inc.:
2.38%, 01/15/25			72		71,292
4.10%, 03/01/28			657		703,123
Centene Corp., 4.75%, 05/15/22			3,290		3,306,450
CHRISTUS Health, Series C, 4.34%, 07/01/28			3,577		4,072,194
Cigna Corp.:
3.25%, 04/15/25(b)			1,487		1,516,565
3.40%, 03/01/27(b)			201		203,423
4.38%, 10/15/28			2,581		2,769,915
2.40%, 03/15/30			441		417,686
4.80%, 07/15/46(b)			18		21,289
CommonSpirit Health:
3.35%, 10/01/29			3,034		2,850,863
3.82%, 10/01/49			1,410		1,453,138
4.19%, 10/01/49			554		520,385
Cottage Health Obligated Group, Series 2020, 3.30%, 11/01/49			61		62,102
CVS Health Corp.:
4.10%, 03/25/25			3,146		3,327,941
3.88%, 07/20/25			12		12,606
3.75%, 04/01/30			4,525		4,659,189
4.78%, 03/25/38			765		845,891
5.30%, 12/05/43			61		71,905
5.13%, 07/20/45			3,095		3,561,142
Express Scripts Holding Co., 2.60%, 11/30/20			275		274,603
HCA, Inc.:
4.75%, 05/01/23			6,605		6,766,809
5.00%, 03/15/24			4,596		4,758,648
5.25%, 04/15/25			5,136		5,386,490
Humana, Inc., 4.88%, 04/01/30			880		943,511
PeaceHealth Obligated Group, Series 2018, 4.79%, 11/15/48			107		134,546
Sutter Health, Series 2018, 3.70%, 08/15/28 .			185		194,124
UnitedHealth Group, Inc.:
3.50%, 02/15/24			225		238,184
2.38%, 08/15/24			3,675		3,759,323

SCHEDULESOF INVESTMENTS 25

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Health Care Providers & Services (continued)
3.75%, 07/15/25	USD		5,977	$	6,459,099
3.10%, 03/15/26			399		421,192
3.38%, 04/15/27			710		759,292
2.95%, 10/15/27			2,833		2,959,518
2.88%, 08/15/29			101		105,737
4.63%, 07/15/35			90		107,111
5.80%, 03/15/36			299		389,418
4.63%, 11/15/41			102		126,068
4.75%, 07/15/45			7		8,914
4.20%, 01/15/47			1,419		1,667,789
4.45%, 12/15/48			2		2,423
					66,684,977
Hotels, Restaurants & Leisure — 0.1%
McDonald’s Corp.:
3.70%, 02/15/42			208		215,343
3.63%, 05/01/43			527		508,270
4.88%, 12/09/45			605		706,528
4.45%, 09/01/48			667		739,162
3.63%, 09/01/49			2,638		2,661,599
					4,830,902
Household Durables — 0.1%
Lennar Corp., 4.13%, 01/15/22			3,020		2,997,350
PulteGroup, Inc., 5.50%, 03/01/26			1,880		1,848,914
					4,846,264
Household Products — 0.0%
Clorox Co. (The), 3.10%, 10/01/27			140		145,839
Independent Power and Renewable Electricity Producers — 0.0%
Colbun SA, 3.15%, 03/06/30(b)			200		186,000
Industrial Conglomerates — 0.2%
3M Co.:
3.38%, 03/01/29			340		363,413
2.38%, 08/26/29			485		486,751
General Electric Co.:
5.88%, 01/14/38			1,351		1,556,567
6.88%, 01/10/39			1,903		2,354,182
Honeywell International, Inc., 2.70%, 08/15/29			1,712		1,717,323
					6,478,236
Insurance — 0.5%
Aon Corp.:
4.50%, 12/15/28			2,795		3,094,468
3.75%, 05/02/29			5,740		6,048,852
Aon plc, 4.75%, 05/15/45			285		317,634
Hartford Financial Services Group, Inc. (The):
4.30%, 04/15/43			360		373,211
3.60%, 08/19/49			83		76,361
Marsh & McLennan Cos., Inc.:
3.50%, 12/29/20			728		733,392
4.05%, 10/15/23			565		587,687
3.88%, 03/15/24			972		1,005,407
3.50%, 06/03/24			2,194		2,241,138
3.50%, 03/10/25			415		430,030
MetLife, Inc., 4.72%, 12/15/44(f)			400		446,915
Principal Financial Group, Inc., 3.70%, 05/15/29			991		1,022,549
Travelers Cos., Inc. (The), 6.25%, 06/15/37			15		21,148
Travelers Property Casualty Corp., 6.38%, 03/15/33			26		35,232
Trinity Acquisition plc, 4.40%, 03/15/26			175		182,308
Willis North America, Inc.:
3.60%, 05/15/24			486		501,528
3.88%, 09/15/49			302		311,087
					17,428,947

Security		Par (000)		Value
Interactive Media & Services — 0.0%
Baidu, Inc., 4.38%, 05/14/24	USD		755	$	798,322
Internet & Direct Marketing Retail — 0.2%
Alibaba Group Holding Ltd., 3.60%, 11/28/24			1,170		1,227,739
Amazon.com, Inc.:
4.80%, 12/05/34			10		13,018
3.88%, 08/22/37			1,760		2,102,447
Expedia Group, Inc.:
5.00%, 02/15/26			214		193,324
3.80%, 02/15/28			939		811,664
3.25%, 02/15/30			4,294		3,594,486
					7,942,678
IT Services — 0.8%
Fidelity National Information Services, Inc.:
3.00%, 08/15/26			1,330		1,340,825
3.75%, 05/21/29			59		64,146
2.95%, 05/21/39	EUR		1,000		1,107,369
Fiserv, Inc.:
4.75%, 06/15/21	USD		751		757,678
3.85%, 06/01/25			40		42,179
3.20%, 07/01/26			6,102		6,302,559
3.50%, 07/01/29			3,563		3,706,201
Global Payments, Inc.:
3.80%, 04/01/21			830		835,199
3.75%, 06/01/23			552		570,092
4.00%, 06/01/23			76		78,713
4.80%, 04/01/26			155		154,229
IBM Credit LLC, 3.45%, 11/30/20			1,135		1,147,898
International Business Machines Corp.:
3.00%, 05/15/24			1,935		2,038,574
3.30%, 05/15/26			4,346		4,644,534
1.20%, 02/11/40	EUR		1,000		931,306
Mastercard, Inc.:
3.30%, 03/26/27	USD		1,155		1,258,398
2.95%, 06/01/29			1,200		1,277,231
3.35%, 03/26/30			1,356		1,501,674
3.85%, 03/26/50			59		72,301
PayPal Holdings, Inc., 2.65%, 10/01/26			515		504,162
Visa, Inc.:
2.80%, 12/14/22			615		640,541
3.15%, 12/14/25			1,525		1,660,964
2.70%, 04/15/40			1,079		1,071,059
					31,707,832
Leisure Products — 0.0%
Hasbro, Inc.:
2.60%, 11/19/22			868		856,537
3.90%, 11/19/29			225		200,776
					1,057,313
Life Sciences Tools & Services — 0.1%
Agilent Technologies, Inc.:
3.88%, 07/15/23			392		404,393
3.05%, 09/22/26			2,061		2,167,251
2.75%, 09/15/29			873		844,426
Thermo Fisher Scientific, Inc.:
4.50%, 03/25/30			201		225,952
1.88%, 10/01/49	EUR		1,600		1,383,248
					5,025,270
Machinery — 0.1%
Otis Worldwide Corp., 2.06%, 04/05/25(b)	USD		1,018		994,929
Parker-Hannifin Corp., 3.25%, 06/14/29			994		1,001,951
					1,996,880
Media — 1.2%
Charter Communications Operating LLC:
Series USD, 4.50%, 02/01/24			2,552		2,629,494

26 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Media (continued)
4.91%, 07/23/25	USD		1,210	$	1,284,528
4.20%, 03/15/28			64		65,448
6.38%, 10/23/35			2,738		3,249,823
6.48%, 10/23/45			5,140		6,200,485
5.38%, 05/01/47			454		490,005
5.75%, 04/01/48			578		655,384
4.80%, 03/01/50			1,711		1,780,421
Comcast Corp.:
3.15%, 03/01/26			1,795		1,881,064
2.35%, 01/15/27			15		14,895
3.15%, 02/15/28			418		436,944
4.15%, 10/15/28			726		815,163
3.40%, 04/01/30			3,040		3,295,054
4.25%, 01/15/33			243		283,896
4.40%, 08/15/35			457		548,228
6.50%, 11/15/35			312		454,747
3.20%, 07/15/36			503		525,453
4.60%, 10/15/38			408		499,399
3.25%, 11/01/39			25		25,807
1.25%, 02/20/40	EUR		1,000		938,545
3.75%, 04/01/40	USD		513		579,124
4.65%, 07/15/42			227		286,873
4.75%, 03/01/44			4		5,080
3.40%, 07/15/46			1,359		1,468,396
3.97%, 11/01/47			206		234,284
4.70%, 10/15/48			1,913		2,478,292
4.95%, 10/15/58			4		5,414
Cox Communications, Inc.(b):
3.15%, 08/15/24			8,395		8,568,854
3.35%, 09/15/26			129		130,191
Discovery Communications LLC:
5.00%, 09/20/37			1,887		1,832,821
4.95%, 05/15/42			894		851,254
4.88%, 04/01/43			169		158,020
5.20%, 09/20/47			856		862,483
Fox Corp., 3.05%, 04/07/25			73		72,886
TCI Communications, Inc., 7.88%, 02/15/26			291		373,863
Time Warner Cable LLC:
6.55%, 05/01/37			320		358,993
5.50%, 09/01/41			360		376,048
4.50%, 09/15/42			132		123,944
ViacomCBS, Inc.:
6.88%, 04/30/36			689		776,088
4.38%, 03/15/43			1,075		952,685
					46,570,376
Metals & Mining — 0.1%
Anglo American Capital plc, 4.75%, 04/10/27(b)			620		605,252
ArcelorMittal SA:
3.60%, 07/16/24			817		744,677
6.13%, 06/01/25			66		65,334
4.55%, 03/11/26			448		401,762
Industrias Penoles SAB de CV, 4.15%, 09/12/29(b)			505		443,848
Minera Mexico SA de CV, 4.50%, 01/26/50(b)			418		351,120
Newmont Corp.:
2.80%, 10/01/29			967		898,993
2.25%, 10/01/30			259		240,651
Novolipetsk Steel Via Steel Funding DAC, 4.70%, 05/30/26(b)			238		237,628
Nucor Corp., 3.95%, 05/01/28			289		284,444
Teck Resources Ltd.:
6.13%, 10/01/35			301		276,366
6.00%, 08/15/40			2		1,715
6.25%, 07/15/41			531		459,003

Security		Par (000)		Value
Metals & Mining (continued)
Votorantim SA, 6.75%, 04/05/21(b)	USD		296	$	295,408
					5,306,201
Multi-Utilities — 0.2%
Ameren Illinois Co.:
3.80%, 05/15/28			868		936,881
3.70%, 12/01/47			11		11,095
3.25%, 03/15/50			1,389		1,389,646
Consumers Energy Co.:
3.38%, 08/15/23			14		14,578
3.80%, 11/15/28			81		84,851
3.95%, 07/15/47			109		126,464
4.05%, 05/15/48			625		721,522
3.75%, 02/15/50			1,096		1,185,925
3.10%, 08/15/50			1,165		1,134,321
3.50%, 08/01/51			970		1,053,148
					6,658,431
Oil, Gas & Consumable Fuels — 2.2%
Boardwalk Pipelines LP, 4.80%, 05/03/29			419		315,710
BP Capital Markets America, Inc.:
3.79%, 02/06/24			809		829,357
3.22%, 04/14/24			597		608,224
3.80%, 09/21/25			1,295		1,325,136
3.41%, 02/11/26			148		147,879
3.12%, 05/04/26			595		598,989
3.94%, 09/21/28			106		113,222
BP Capital Markets plc, 3.81%, 02/10/24			432		435,682
Cameron LNG LLC(b):
3.30%, 01/15/35			4,240		3,669,508
3.40%, 01/15/38			2,217		1,733,085
Cheniere Corpus Christi Holdings LLC:
7.00%, 06/30/24			2,820		2,474,736
5.88%, 03/31/25			4,669		3,910,877
5.13%, 06/30/27			4,200		3,730,056
Chevron Corp.:
2.10%, 05/16/21			105		105,035
2.50%, 03/03/22			20		20,298
2.36%, 12/05/22			20		20,274
Cimarex Energy Co.:
4.38%, 06/01/24			368		290,002
4.38%, 03/15/29			10		6,696
Concho Resources, Inc., 3.75%, 10/01/27			868		736,151
Diamondback Energy, Inc., 3.50%, 12/01/29			5,285		3,593,391
Enbridge Energy Partners LP, 7.38%, 10/15/45			125		137,445
Energen Corp., 4.63%, 09/01/21			950		917,231
Energy Transfer Operating LP:
4.90%, 02/01/24			190		170,028
6.50%, 02/01/42			1,368		1,245,607
5.30%, 04/15/47			450		341,941
Energy Transfer Partners LP, 5.00%, 10/01/22			820		746,718
Enterprise Products Operating LLC:
3.13%, 07/31/29			63		57,949
Series D, 6.88%, 03/01/33			192		220,877
Series H, 6.65%, 10/15/34			35		40,544
4.45%, 02/15/43			1,586		1,498,138
4.85%, 03/15/44			57		59,096
4.25%, 02/15/48			275		255,264
EOG Resources, Inc.:
4.15%, 01/15/26			260		266,121
3.90%, 04/01/35			75		75,454
Exxon Mobil Corp.:
1.90%, 08/16/22			148		148,505
3.04%, 03/01/26			719		760,110

SCHEDULESOF INVESTMENTS 27

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
2.28%, 08/16/26	USD		1,189	$	1,210,264
Kinder Morgan Energy Partners LP:
6.50%, 02/01/37			558		574,789
6.95%, 01/15/38			642		667,742
6.38%, 03/01/41			724		727,909
5.00%, 08/15/42			60		55,898
5.00%, 03/01/43			50		47,400
Kinder Morgan, Inc., 5.30%, 12/01/34			390		375,423
Marathon Petroleum Corp.:
4.75%, 12/15/23			800		757,536
4.75%, 09/15/44			245		186,270
5.85%, 12/15/45			345		286,018
MPLX LP:
4.13%, 03/01/27			3,555		3,029,199
4.25%, 12/01/27(b)			703		567,847
NGPL PipeCo LLC(b):
4.38%, 08/15/22			2,998		2,861,227
7.77%, 12/15/37			587		584,367
Northwest Pipeline LLC, 4.00%, 04/01/27			3,865		3,831,626
Occidental Petroleum Corp., 0.00%, 10/10/36(g)			7,180		2,782,250
Sabine Pass Liquefaction LLC:
5.63%, 04/15/23(f)			2,044		1,901,938
5.75%, 05/15/24			1,522		1,409,307
5.63%, 03/01/25			10,153		9,319,358
5.88%, 06/30/26			1,550		1,402,440
5.00%, 03/15/27			753		639,820
4.20%, 03/15/28			1,805		1,548,761
Santos Finance Ltd., 5.25%, 03/13/29			600		616,129
Suncor Energy, Inc.:
6.80%, 05/15/38			371		385,601
6.50%, 06/15/38			412		422,453
Texas Eastern Transmission LP(b):
3.50%, 01/15/28			2,049		1,878,153
4.15%, 01/15/48			910		762,896
Total Capital Canada Ltd., 2.75%, 07/15/23			40		40,540
Total Capital International SA:
2.22%, 07/12/21			643		644,638
2.88%, 02/17/22			202		203,078
3.70%, 01/15/24			3,477		3,637,117
3.75%, 04/10/24			173		181,405
2.43%, 01/10/25			171		171,045
TransCanada PipeLines Ltd.:
4.88%, 01/15/26			354		386,890
4.63%, 03/01/34			530		508,849
5.85%, 03/15/36			213		227,320
Transcontinental Gas Pipe Line Co. LLC:
7.85%, 02/01/26			1,895		2,157,527
4.00%, 03/15/28			2,503		2,246,913
4.60%, 03/15/48			560		555,087
Valero Energy Corp., 3.40%, 09/15/26			1,358		1,218,262
Western Midstream Operating LP:
5.38%, 06/01/21			3,320		2,652,845
4.00%, 07/01/22			520		335,312
(LIBOR USD 3 Month + 0.85%), 2.70%, 01/13/23(a)			260		137,150
Williams Cos., Inc. (The):
Series A, 7.50%, 01/15/31			495		575,163
4.85%, 03/01/48			171		159,428
					86,476,526
Paper & Forest Products — 0.2%
Georgia-Pacific LLC:
5.40%, 11/01/20(b)			1,945		1,963,588
3.73%, 07/15/23(b)			2,088		2,195,271
3.60%, 03/01/25(b)			400		422,566
7.38%, 12/01/25			1,203		1,520,974

Security		Par (000)		Value
Paper & Forest Products (continued)
7.75%, 11/15/29	USD		300	$	427,735
8.88%, 05/15/31			165		252,121
					6,782,255
Pharmaceuticals — 1.1%
Allergan Finance LLC:
3.25%, 10/01/22			227		227,609
4.63%, 10/01/42			98		122,500
Allergan Funding SCS:
3.80%, 03/15/25			4,003		4,098,448
4.55%, 03/15/35			1,661		1,826,873
Bayer US Finance II LLC, 2.85%, 04/15/25(b)			1,500		1,458,144
Bristol-Myers Squibb Co.:
3.95%, 10/15/20(b)			190		191,864
2.25%, 08/15/21(b)			305		306,788
3.55%, 08/15/22(b)			3,130		3,299,403
2.75%, 02/15/23(b)			1,428		1,476,363
3.25%, 02/20/23(b)			180		189,010
4.00%, 08/15/23(b)			1,596		1,671,904
3.63%, 05/15/24(b)			25		26,417
3.20%, 06/15/26(b)			3,667		3,892,862
6.80%, 11/15/26			339		415,617
3.25%, 02/27/27			728		767,372
3.45%, 11/15/27(b)			371		394,776
Eli Lilly & Co., 1.70%, 11/01/49	EUR		800		735,723
GlaxoSmithKline Capital plc, 3.38%, 06/01/29	USD		1,156		1,247,535
GlaxoSmithKline Capital, Inc., 3.88%, 05/15/28			1,324		1,487,191
Johnson & Johnson, 2.45%, 03/01/26			1,101		1,175,792
Merck & Co., Inc., 3.40%, 03/07/29			1,350		1,470,633
Novartis Capital Corp.:
2.20%, 08/14/30			355		363,377
4.40%, 05/06/44			320		420,689
Pfizer, Inc.:
1.95%, 06/03/21			101		101,731
3.45%, 03/15/29			1,133		1,246,678
Shire Acquisitions Investments Ireland DAC:
2.88%, 09/23/23			856		862,219
3.20%, 09/23/26			3,177		3,213,796
Takeda Pharmaceutical Co. Ltd., 5.00%, 11/26/28			6,122		6,978,895
Wyeth LLC, 5.95%, 04/01/37			1,481		2,098,766
					41,768,975
Professional Services — 0.0%
Equifax, Inc., 2.60%, 12/01/24			986		931,939
Real Estate Management & Development — 0.0%
Celulosa Arauco y Constitucion SA, 4.25%, 04/30/29(b)			200		169,175
MAF Global Securities Ltd., 4.75%, 05/07/24			232		223,880
					393,055
Road & Rail — 0.7%
Burlington Northern Santa Fe LLC:
5.75%, 05/01/40			1,538		1,958,501
5.05%, 03/01/41			275		330,538
4.95%, 09/15/41			27		32,835
Canadian Pacific Railway Co., 2.05%, 03/05/30			539		501,072
CSX Corp.:
4.25%, 03/15/29			1,675		1,877,495
6.00%, 10/01/36			182		220,232
6.15%, 05/01/37			11		13,566
4.30%, 03/01/48			1,683		1,844,457
4.75%, 11/15/48			685		788,583
4.25%, 11/01/66			956		951,430
4.65%, 03/01/68			87		94,765

28 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Road & Rail (continued)
Norfolk Southern Corp.:
3.25%, 12/01/21	USD		56	$	56,619
2.90%, 02/15/23			80		81,153
3.65%, 08/01/25			1,005		1,037,750
2.90%, 06/15/26			1,355		1,382,788
2.55%, 11/01/29			101		97,692
4.45%, 06/15/45			23		25,483
3.94%, 11/01/47			209		217,885
4.10%, 05/15/49			318		339,550
3.40%, 11/01/49			1,092		1,059,661
4.05%, 08/15/52			808		867,440
Ryder System, Inc.:
2.50%, 09/01/22			310		291,852
3.75%, 06/09/23			131		131,495
Union Pacific Corp.:
3.15%, 03/01/24			406		422,024
2.75%, 03/01/26			1,097		1,104,230
2.15%, 02/05/27			1,424		1,390,625
3.38%, 02/01/35			495		508,780
3.60%, 09/15/37			1,111		1,147,359
3.55%, 08/15/39			325		326,846
3.25%, 02/05/50			536		532,874
3.95%, 08/15/59			1,357		1,436,707
3.84%, 03/20/60(b)			1,348		1,406,919
4.38%, 11/15/65			301		321,389
3.75%, 02/05/70			2,662		2,745,381
					25,545,976
Semiconductors & Semiconductor Equipment — 1.3%
Applied Materials, Inc.:
5.10%, 10/01/35			145		195,098
4.35%, 04/01/47			391		498,659
Broadcom Corp., 3.88%, 01/15/27			7,497		7,162,396
Broadcom, Inc., 4.25%, 04/15/26(b)			2,274		2,235,586
Intel Corp., 4.10%, 05/11/47			204		247,801
KLA Corp.:
4.10%, 03/15/29			2,581		2,711,110
3.30%, 03/01/50			4,764		4,463,290
Lam Research Corp.:
2.80%, 06/15/21			306		308,781
3.75%, 03/15/26			3,117		3,306,307
4.88%, 03/15/49			833		1,074,327
NVIDIA Corp.:
3.20%, 09/16/26			5,251		5,846,385
2.85%, 04/01/30			1,730		1,805,456
3.50%, 04/01/50			1,476		1,604,901
3.70%, 04/01/60			567		633,782
NXP BV(b):
4.13%, 06/01/21			5,291		5,338,554
4.63%, 06/15/22			7,522		7,782,375
4.63%, 06/01/23			2,405		2,475,389
3.88%, 06/18/26			113		109,928
5.55%, 12/01/28			604		679,803
4.30%, 06/18/29			2,183		2,237,086
QUALCOMM, Inc.:
4.80%, 05/20/45			373		487,338
4.30%, 05/20/47			723		867,577
					52,071,929
Software — 0.7%
Autodesk, Inc., 3.50%, 06/15/27			4,684		4,816,124
Microsoft Corp.:
3.50%, 02/12/35			2,626		3,088,167
3.75%, 02/12/45			371		446,648
4.45%, 11/03/45			1,342		1,764,706

Security		Par (000)		Value
Software (continued)
Oracle Corp.:
2.65%, 07/15/26	USD		1,971	$	2,011,587
3.25%, 11/15/27			288		296,675
3.90%, 05/15/35			3,169		3,425,957
3.85%, 07/15/36			124		130,379
3.80%, 11/15/37			1,220		1,256,787
3.60%, 04/01/40			3,330		3,330,322
5.38%, 07/15/40			561		749,332
3.60%, 04/01/50			6,662		6,662,168
					27,978,852
Specialty Retail — 0.1%
Home Depot, Inc. (The):
2.80%, 09/14/27			96		99,228
3.90%, 12/06/28			102		113,630
2.95%, 06/15/29			1,788		1,853,366
3.35%, 04/15/50			296		309,262
Lowe’s Cos., Inc.:
4.38%, 09/15/45			26		26,767
3.70%, 04/15/46			191		176,744
4.05%, 05/03/47			574		568,301
					3,147,298
Technology Hardware, Storage & Peripherals — 0.2%
Apple, Inc.:
3.85%, 05/04/43			2,079		2,471,346
3.85%, 08/04/46			76		91,553
4.25%, 02/09/47			179		229,048
Dell International LLC(b):
6.02%, 06/15/26			61		62,957
4.90%, 10/01/26			805		792,274
8.10%, 07/15/36			1,665		1,913,108
8.35%, 07/15/46			10		11,872
Hewlett Packard Enterprise Co.(f):
3.60%, 10/15/20			15		15,018
4.40%, 10/15/22			170		173,256
6.35%, 10/15/45			503		596,929
HP, Inc., 6.00%, 09/15/41			290		312,251
Seagate HDD Cayman:
4.25%, 03/01/22			148		148,320
5.75%, 12/01/34			325		303,592
					7,121,524
Textiles, Apparel & Luxury Goods — 0.0%
NIKE, Inc., 3.38%, 03/27/50			545		594,542
Thrifts & Mortgage Finance — 0.1%
BPCE SA(b):
3.00%, 05/22/22			606		600,082
2.70%, 10/01/29			4,140		3,923,459
					4,523,541
Tobacco — 0.7%
Altria Group, Inc.:
3.80%, 02/14/24			1,139		1,154,475
4.40%, 02/14/26			3,427		3,606,339
4.80%, 02/14/29			3,044		3,168,068
5.80%, 02/14/39			4,021		4,401,875
6.20%, 02/14/59			105		115,497
BAT Capital Corp.:
3.22%, 08/15/24			63		60,624
3.22%, 09/06/26			1,075		1,022,199
4.70%, 04/02/27			1,600		1,625,867
4.91%, 04/02/30			1,220		1,249,758
4.54%, 08/15/47			1,152		1,048,479
Philip Morris International, Inc.:
2.50%, 08/22/22			561		562,512
1.45%, 08/01/39	EUR		1,100		961,917

SCHEDULESOF INVESTMENTS 29

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Tobacco (continued)
Reynolds American, Inc.:
4.45%, 06/12/25	USD		3,624	$	3,645,643
5.85%, 08/15/45			2,388		2,565,070
					25,188,323
Trading Companies & Distributors — 0.1%
United Rentals North America, Inc., 3.88%, 11/15/27			1,880		1,776,600
Transportation Infrastructure — 0.0%
DP World Crescent Ltd., 3.91%, 05/31/23			441		420,742
Wireless Telecommunication Services — 0.2%
Empresa Nacional de Telecomunicaciones SA, 4.75%, 08/01/26(b)			305		288,225
Sprint Spectrum Co. LLC, 3.36%, 09/20/21(b)(f)			1,533		1,525,708
Vodafone Group plc:
3.75%, 01/16/24			835		869,284
4.13%, 05/30/25			1,969		2,096,465
5.00%, 05/30/38			896		967,713
4.38%, 02/19/43			1,304		1,344,916
5.25%, 05/30/48			1,848		2,227,214
					9,319,525
Total Corporate Bonds — 35.4% (Cost: $1,397,037,016)					1,374,029,431
Foreign Agency Obligations — 0.2%
Colombia — 0.0%
Ecopetrol SA, 7.38%, 09/18/43			250		247,722
Mexico — 0.2%
Petroleos Mexicanos:
6.50%, 03/13/27			4,502		3,309,674
5.95%, 01/28/31(b)			64		44,160
6.63%, 06/15/35			673		450,245
7.69%, 01/23/50(b)			3,990		2,713,200
6.95%, 01/28/60(b)			487		328,725
					6,846,004
Saudi Arabia — 0.0%
Saudi Arabian Oil Co., 2.88%, 04/16/24			200		194,500
Total Foreign Agency Obligations — 0.2% (Cost: $10,504,031)					7,288,226
Foreign Government Obligations — 1.4%
Colombia — 0.2%
Republic of Colombia:
3.88%, 04/25/27			4,080		4,017,525
5.20%, 05/15/49			1,580		1,660,481
Titulos de Tesoreria, 7.25%, 10/18/34	COP		1,378,300		335,461
					6,013,467
Hungary — 0.1%
Hungary Government Bond, 5.38%, 03/25/24	USD		2,860		3,158,513
Indonesia — 0.2%
Republic of Indonesia:
4.10%, 04/24/28			3,006		3,068,938
6.63%, 05/15/33	IDR		5,775,000		306,100
7.50%, 06/15/35			32,645,000		1,875,436
8.38%, 04/15/39			45,653,000		2,769,690
					8,020,164
Israel — 0.0%
State of Israel Government Bond, 3.88%, 07/03/50	USD		1,275		1,310,063

Security		Par (000)		Value
Mexico — 0.2%
United Mexican States:
4.15%, 03/28/27	USD		6,531	$	6,649,374
4.50%, 01/31/50			3,100		3,082,950
					9,732,324
Panama — 0.1%
Republic of Panama:
3.88%, 03/17/28			4,319		4,630,778
4.50%, 04/01/56			237		257,737
					4,888,515
Peru — 0.1%
Republic of Peru, 4.13%, 08/25/27			2,903		3,270,411
Philippines — 0.2%
Republic of Philippines, 3.00%, 02/01/28			6,085		6,339,475
Russia — 0.2%
Russian Federation:
4.38%, 03/21/29			2,200		2,354,000
8.50%, 09/17/31	RUB		260,069		3,769,577
					6,123,577
Uruguay — 0.1%
Oriental Republic of Uruguay:
4.38%, 10/27/27	USD		2,689		2,896,903
5.10%, 06/18/50			680		774,987
					3,671,890
Total Foreign Government Obligations — 1.4% (Cost: $54,557,365)					52,528,399
Municipal Bonds — 3.9%
American Municipal Power, Inc. (Combined Hydroelectric Project):
Series 2010B, RB, 7.83%, 02/15/41			350		536,046
Series 2009B, RB, 6.45%, 02/15/44			1,875		2,607,675
Series 2010B, RB, 8.08%, 02/15/50			570		951,911
Arizona Industrial Development Authority,Series 2019-2, RB, 3.63%, 03/15/33			408		417,185
Bay Area Toll Authority:
Series 2010S-1, RB, 6.92%, 04/01/40			1,090		1,602,420
Series 2010S-1, RB, 7.04%, 04/01/50			2,185		3,593,670
Berks County Industrial Development Authority (Tower Health Project), Series 2017, RB, 5.00%, 11/01/47			420		460,076
California State University, Series 2020B, RB, 2.98%, 11/01/51			2,135		2,075,391
Central Puget Sound Regional Transit Authority,Series 2015S-1, RB, 5.00%, 11/01/50			420		486,074
City of Atlanta, Series 2015, RB, 5.00%, 11/01/40			200		231,782
City of San Antonio Electric & Gas Systems:
Series 2010A, RB, 5.72%, 02/01/41			715		969,447
Series 2010A, RB, 5.81%, 02/01/41			815		1,126,738
City of Seattle:
Series 2019A, RB, 5.00%, 04/01/46			1,355		1,641,474
Series 2019A, RB, 5.00%, 04/01/47			1,935		2,340,634
Series 2019A, RB, 5.00%, 04/01/48			1,170		1,413,816
Colorado Health Facilities Authority
(CommonSpirit Health),Series 2019A-2, RB, 5.00%, 08/01/44			1,330		1,430,176
Commonwealth Financing Authority, Series 2019A, RB, 3.81%, 06/01/41			2,400		2,813,328
Commonwealth of Massachusetts:
Series 2009E, GO, 5.46%, 12/01/39			95		125,081

30 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Municipal Bonds (continued)
Series 2017F, GO, 5.00%, 11/01/40	USD		1,350	$	1,641,695
Series 2017F, GO, 5.00%, 11/01/46			2,575		3,077,614
Series 2019H, GO, 2.90%, 09/01/49			425		397,978
County of Miami-Dade:
Series 2019E, RB, 2.45%, 10/01/29			2,500		2,541,675
Series 2019E, RB, 2.53%, 10/01/30			1,215		1,235,959
District of Columbia, Series 2016A, GO, 5.00%, 06/01/41			675		801,630
Dutchess County Local Development Corp. (Health Quest Systems, Inc. Project), Series 2016B, RB, 5.00%, 07/01/46			805		900,674
Foothill-Eastern Transportation Corridor Agency, Series 2019A, RB, 4.09%, 01/15/49			305		302,142
Health & Educational Facilities Authority, Series 2020A, RB, 3.23%, 05/15/50(h)			590		609,865
JobsOhio Beverage System, Series 2020B, RB, 2.83%, 01/01/38			1,230		1,198,930
Long Island Power Authority, Series 2017, RB, 5.00%, 09/01/47			1,145		1,354,191
Los Angeles Community College District, Series 2010E, GO, 6.60%, 08/01/42			980		1,521,548
Los Angeles Department of Water, Series 2009C, RB, 6.01%, 07/01/39			750		986,182
Los Angeles Unified School District, Series 2010I, GO, 6.76%, 07/01/34			1,870		2,539,497
Louisiana Public Facilities Authority, Series 2018E, RB, 5.00%, 07/01/48			290		334,950
Maryland Health & Higher Educational Facilities Authority:
Series 2015, RB, 5.00%, 08/15/25			440		504,354
Series 2015, RB, 5.00%, 08/15/27			280		320,334
Massachusetts Development Finance Agency:
Series 2018J-2, RB, 5.00%, 07/01/43			210		241,594
Series 2018J-2, RB, 5.00%, 07/01/48			600		686,382
Massachusetts Housing Finance Agency:
Series 2014B, RB, 4.50%, 12/01/39			215		223,293
Series 2014B, RB, 4.60%, 12/01/44			225		238,329
Series 2015A, RB, 4.50%, 12/01/48			275		287,691
Massachusetts School Building Authority, Series 2019B, RB, 2.87%, 10/15/31			1,450		1,483,785
Metropolitan Atlanta Rapid Transit Authority, Series 2015A, RB, 5.00%, 07/01/41			580		677,869
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center), Series 2016A, RB, 5.00%, 07/01/40			210		232,239
Metropolitan Transportation Authority:
Series 2010A, RB, 6.67%, 11/15/39			200		266,680
Series 2010E, RB, 6.81%, 11/15/40			610		829,923
Michigan Finance Authority (Henry Ford Health System), Series 2016, RB, 5.00%, 11/15/28			290		337,940
Michigan State Housing Development Authority:
Series 2018B, RB, 3.55%, 10/01/33			250		268,087
Series 2018A, RB, 4.00%, 10/01/43			240		256,834
Series 2018A, RB, 4.05%, 10/01/48			110		117,804
Series 2018A, RB, 4.15%, 10/01/53			560		600,337
Municipal Electric Authority of Georgia (Plant Vogtle Units 3&4 Units Project):
Series 2010A, RB, 6.64%, 04/01/57			520		687,211
Series 2010A, RB, 6.66%, 04/01/57			660		867,913
New Jersey Transportation Trust Fund Authority:
Series 2010C, RB, 5.75%, 12/15/28			720		847,764
Series 2019B, RB, 4.08%, 06/15/39			2,500		2,467,525
Series 2019B, RB, 4.13%, 06/15/42			515		505,998

Security		Par (000)		Value
Municipal Bonds (continued)
New Jersey Turnpike Authority, Series 2009F, RB, 7.41%, 01/01/40	USD		496	$	723,411
New York City Housing Development Corp.:
Series 2018C-1-A, RB, 3.70%, 11/01/38			260		275,049
Series 2018C-1-B, RB, 3.85%, 11/01/43			780		822,838
Series 2014C-1-A, RB, 4.20%, 11/01/44			3,490		3,617,350
Series 2018C-1-A, RB, 4.00%, 11/01/53			830		883,444
New York City Transitional Finance Authority Future Tax Secured:
Series 2018, Sub-Series C-4, RB, 3.55%, 05/01/25			1,205		1,294,387
Series 2014A, Sub-Series A-2, RB, 3.75%, 11/01/25			895		948,494
Series 2018C-5, RB, 3.90%, 05/01/31			3,000		3,241,500
New York City Water & Sewer System:
Series 2010GG, RB, 5.72%, 06/15/42			1,720		2,436,673
Series 2020AA, RB, 5.38%, 06/15/43(i)			2,725		2,812,554
Series 2020AA, RB, 5.38%, 06/15/43			1,395		1,433,195
Series 2011AA, RB, 5.44%, 06/15/43			775		1,066,617
Series 2011EE, RB, 5.50%, 06/15/43(i)			3,525		3,639,034
Series 2011CC, RB, 5.88%, 06/15/44			330		480,414
New York State Dormitory Authority:
Series 2010H, RB, 5.39%, 03/15/40			320		418,682
Series 2019F, RB, 3.19%, 02/15/43			875		882,403
Series 2019B, RB, 3.14%, 07/01/43			660		668,712
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		1,359,417
Permanent University Fund — University of Texas System, Series 2017A, RB, 3.38%, 07/01/47			1,285		1,357,590
Port Authority of New York & New Jersey:
Series 181, RB, 4.96%, 08/01/46			1,665		1,946,402
Series 174, RB, 4.46%, 10/01/62			920		1,015,275
Port of Seattle, Series 2018A, RB, 5.00%, 05/01/43			220		243,850
Rutgers The State University of New Jersey:
Series 2010H, RB, 5.67%, 05/01/40			1,770		2,318,258
Series 2019R, RB, 3.27%, 05/01/43			510		506,415
Salt River Project Agricultural Improvement & Power District, Series 2015A, RB, 5.00%, 12/01/45			600		693,948
San Francisco City & County Airport Comm- San Francisco International Airport, Series 2019F, RB, 5.00%, 05/01/50			580		690,206
San Jose Redevelopment Agency Successor Agency, Series 2017A-T, 3.18%, 08/01/26			445		457,745
South Carolina Public Service Authority, Series 2016D, RB, 2.39%, 12/01/23			590		599,139
State of California:
Series 2019, GO, 2.65%, 04/01/26			3,750		3,913,087
Series 2009, GO, 7.50%, 04/01/34			940		1,436,235
Series 2018, GO, 4.60%, 04/01/38			4,110		4,483,887
Series 2009, GO, 7.55%, 04/01/39			1,105		1,807,802
Series 2009, GO, 7.30%, 10/01/39			420		648,757
State of Connecticut, Series 2008A, GO, 5.85%, 03/15/32			3,555		4,375,352
State of Delaware, Series 2019, GO, 5.00%, 02/01/24			2,320		2,659,486
State of Illinois:
Series 2003, GO, 5.10%, 06/01/33			3,525		3,508,891
Series 2010-5, GO, 7.35%, 07/01/35			2,235		2,501,032
State of Oregon, Series 2003, GO, 5.89%, 06/01/27			1,795		2,094,657

SCHEDULESOF INVESTMENTS 31

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security			Par (000)		Value
Municipal Bonds (continued)
State of Texas, Series 2009A, GO, 5.52%, 04/01/39		USD		2,375	$	3,223,896
State of Washington, Series 2018C, GO, 5.00%, 02/01/39				1,935		2,371,130
State of Wisconsin:
Series 2020A, RB, 2.20%, 05/01/27				2,000		1,999,100
Series 2016A, RB, 2.48%, 05/01/27				2,000		2,031,040
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC Segment 3C Project), Series 2019, RB, 5.00%, 06/30/58				1,570		1,674,703
Triborough Bridge & Tunnel Authority, Series 2017A, RB, 5.00%, 11/15/47				2,135		2,464,495
University of California:
Series 2019BD, RB, 3.35%, 07/01/29				3,465		3,767,252
Series 2009R, RB, 5.77%, 05/15/43				6,235		8,201,269
Series 2012AD, RB, 4.86%, 05/15/12				334		444,541
University of Texas System (The), Series 2020A, RB, 5.00%, 08/15/30(h)				1,000		1,343,140
Utah Transit Authority, Series 2039, RB, 5.94%, 06/15/39				1,455		2,021,897
Virginia Small Business Financing Authority (Transform 66 P3 Project), Series 2017, RB, 5.00%, 12/31/52				590		596,933
Total Municipal Bonds — 3.9% (Cost: $148,523,612)						151,618,924
Non-Agency Mortgage-Backed Securities — 2.7%
Collateralized Mortgage Obligations — 0.2%
CHL Mortgage Pass-Through Trust, Series 2004-29, Class 1A1, 1.49%, 02/25/35(d)				298		245,070
JPMorgan Mortgage Trust, Series 2017-3, Class 1A6, 3.00%, 08/25/47(b)(d)				3,301		3,274,541
Mortgage Loan Resecuritization Trust, Series 2009-RS1, Class A85, 1.92%, 04/16/36(b)(d)				6,444		5,201,287
MortgageIT Trust, Series 2004-1, Class A1, 1.73%, 11/25/34(d)				459		423,295
New Residential Mortgage Loan Trust, Series 2019-2A, Class A1, 4.25%, 12/25/57(b)(d)				463		468,263
Structured Asset Securities Corp. Assistance Loan Trust, Series 2003-AL1, Class A, 3.36%, 04/25/31(b)				230		225,571
	��
						9,838,027
Commercial Mortgage-Backed Securities — 2.2%
1211 Avenue of the Americas Trust, Series 2015-1211, Class D, 4.14%, 08/10/35(b)(d)				150		139,659
280 Park Avenue Mortgage Trust, Series 2017- 280P, Class D, 2.24%, 09/15/34(b)(d)				640		558,320
Americold LLC, Series 2010-ARTA, Class C, 6.81%, 01/14/29(b)				500		499,755
AOA Mortgage Trust, Series 2015-1177, Class C, 3.01%, 12/13/29(b)(d)				1,550		1,534,655
Ashford Hospitality Trust, Series 2018-ASHF, Class D, 2.80%, 04/15/35(b)(d)				225		187,468
Atrium Hotel Portfolio Trust, Series 2017-ATRM, Class D, 2.65%, 12/15/36(b)(d)				4,050		3,242,921
Aventura Mall Trust, Series 2013-AVM, Class D, 3.74%, 12/05/32(b)(d)				500		493,653
BAMLL Commercial Mortgage Securities Trust(b) (d):
Series 2017-SCH, Class CL, 2.20%, 11/15/32				1,450		1,251,640
Series 2017-SCH, Class DL, 2.70%, 11/15/32				1,490		1,188,334

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2018-DSNY, Class D, 2.40%, 09/15/34	USD		830	$	649,836
Bancorp Commercial Mortgage Trust (The), Series 2018-CR3, Class A, 1.55%, 01/15/33(b)(d)			217		203,756
BANK, Series 2019-BN19, Class C, 4.03%, 08/15/61(d)			187		152,244
BBCMS Mortgage Trust(b)(d):
Series 2018-TALL, Class A, 1.43%, 03/15/37			232		215,159
Series 2018-TALL, Class D, 2.15%, 03/15/37			600		488,882
Series 2019-BWAY, Class D, 2.86%, 11/25/34			510		467,408
BBCMS Trust, Series 2015-SRCH, Class A1, 3.31%, 08/10/35(b)			1,119		1,095,680
BB-UBS Trust, Series 2012-SHOW, Class E, 4.03%, 11/05/36(b)(d)			260		199,441
Bear Stearns Commercial Mortgage Securities Trust(d):
Series 2005-PWR7, Class B, 5.12%, 02/11/41			87		86,403
Series 2007-T26, Class AM, 5.44%, 01/12/45			177		163,654
Benchmark Mortgage Trust:
Series 2018-B3, Class A5, 4.03%, 04/10/51			610		674,633
Series 2018-B3, Class D, 3.06%, 04/10/51(b)(d)			130		83,896
Series 2019-B10, Class 3CCA, 3.90%, 03/15/62(b)(d)			823		573,721
Series 2020-B16, Class B, 3.18%, 02/15/53			81		69,375
Series 2020-B16, Class C, 3.53%, 02/15/53(d)			126		87,516
Series 2020-B16, Class D, 2.50%, 02/15/53(b)			413		228,208
BWAY Mortgage Trust(b):
Series 2013-1515, Class A2, 3.45%, 03/10/33			710		727,315
Series 2013-1515, Class C, 3.45%, 03/10/33			2,810		2,637,502
Series 2013-1515, Class E, 3.72%, 03/10/33			100		87,574
BX Trust(b):
Series 2019-OC11, Class A, 3.20%, 12/09/41			110		99,321
Series 2019-OC11, Class D, 4.08%, 12/09/41(d)			1,982		1,555,212
BXP Trust(b)(d):
Series 2017-CC, Class D, 3.55%, 08/13/37			210		178,426
Series 2017-GM, Class D, 3.42%, 06/13/39			140		133,640
CAMB Commercial Mortgage Trust, Series 2019-LIFE, Class D, 2.45%, 12/15/37(b)(d)			1,385		1,265,850
CCRESG Commercial Mortgage Trust, Series 2016-HEAT, Class D, 5.49%, 04/10/29(b)(d)			200		193,077
CD Mortgage Trust:
Series 2006-CD3, Class AM, 5.65%, 10/15/48			1,259		1,289,777
Series 2017-CD3, Class A4, 3.63%, 02/10/50			280		299,471
Series 2017-CD4, Class A4, 3.51%, 05/10/50(d)			10		10,799
CFCRE Commercial Mortgage Trust:
Series 2016-C3, Class A3, 3.87%, 01/10/48			110		115,526
Series 2018-TAN, Class C, 5.29%, 02/15/33(b)			840		782,338
CGDBB Commercial Mortgage Trust(b)(d):
Series 2017-BIOC, Class A, 1.49%, 07/15/32			1,096		983,131
Series 2017-BIOC, Class D, 2.30%, 07/15/32			1,316		1,172,362

32 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
CHC Commercial Mortgage Trust, Series 2019- CHC, Class B, 2.20%, 06/15/34(b)(d)	USD		1,612	$	1,519,621
Citigroup Commercial Mortgage Trust:
Series 2013-375P, Class C, 3.52%, 05/10/35(b)(d)			245		237,952
Series 2014-GC19, Class C, 5.09%, 03/10/47(d)			120		109,107
Series 2016-C1, Class D, 4.95%, 05/10/49(b)(d)			110		93,376
Series 2016-P3, Class C, 4.89%, 04/15/49(d)			501		429,914
Series 2016-P3, Class D, 2.80%, 04/15/49(b)(d)			29		20,024
Series 2017-C4, Class A4, 3.47%, 10/12/50			290		300,444
Series 2019-C7, Class A4, 3.10%, 12/15/72			1,451		1,502,387
Commercial Mortgage Trust:
Series 2013-GAM, Class E, 3.42%, 02/10/28(b)(d)			490		469,233
Series 2014-CR14, Class A4, 4.24%, 02/10/47(d)			600		639,454
Series 2014-CR15, Class C, 4.75%, 02/10/47(d)			70		63,729
Series 2014-CR16, Class A4, 4.05%, 04/10/47			1,534		1,623,268
Series 2014-CR17, Class A5, 3.98%, 05/10/47			831		872,765
Series 2014-CR18, Class A4, 3.55%, 07/15/47			129		134,710
Series 2014-CR19, Class A5, 3.80%, 08/10/47			440		463,154
Series 2014-LC15, Class A4, 4.01%, 04/10/47			320		340,117
Series 2014-UBS4, Class C, 4.64%, 08/10/47(d)			551		487,348
Series 2015-CR24, Class A5, 3.70%, 08/10/48			300		320,119
Series 2015-CR25, Class A4, 3.76%, 08/10/48			854		901,066
Series 2015-LC19, Class A4, 3.18%, 02/10/48			420		436,190
Series 2015-LC19, Class D, 2.87%, 02/10/48(b)			115		86,339
Series 2015-LC23, Class A4, 3.77%, 10/10/48			200		214,086
Series 2016-667M, Class D, 3.18%, 10/10/36(b)(d)			440		369,251
Series 2017-COR2, Class A3, 3.51%, 09/10/50			270		287,538
Series 2017-COR2, Class D, 3.00%, 09/10/50(b)			4,150		2,732,150
CSAIL Commercial Mortgage Trust:
Series 2015-C2, Class A4, 3.50%, 06/15/57			270		279,624
Series 2018-CX12, Class A4, 4.22%, 08/15/51(d)			200		216,034
Series 2019-C16, Class A3, 3.33%, 06/15/52			580		602,336
Series 2019-C16, Class C, 4.24%, 06/15/52(d)			800		600,050
Series 2019-C17, Class C, 3.93%, 09/15/52			672		487,362
Series 2019-C17, Class D, 2.50%, 09/15/52(b)			522		293,564
CSMC Trust(b):
Series 2017-PFHP, Class A, 1.65%, 12/15/30(d)			530		448,126
Series 2017-TIME, Class A, 3.65%, 11/13/39			230		188,524
DBJPM Mortgage Trust, Series 2016-C1, Class A4, 3.28%, 05/10/49			240		252,579

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
DBUBS Mortgage Trust(b):
Series 2011-LC1A, Class E, 5.69%, 11/10/46(d)	USD		1,310	$	1,243,718
Series 2017-BRBK, Class A, 3.45%, 10/10/34			1,080		1,066,209
Series 2017-BRBK, Class D, 3.53%, 10/10/34(d)			360		294,541
Eleven Madison Trust Mortgage Trust, Series 2015-11MD, Class A, 3.55%, 09/10/35(b)(d)			350		345,966
GPMT Ltd., Series 2018-FL1, Class A, 1.67%, 11/21/35(b)(d)			184		171,113
GS Mortgage Securities Corp. II(b):
Series 2005-ROCK, Class A, 5.37%, 05/03/32			800		852,021
Series 2012-TMSQ, Class D, 3.46%, 12/10/30(d)			250		209,121
GS Mortgage Securities Corp. Trust(b):
Series 2016-RENT, Class C, 4.07%, 02/10/29(d)			395		387,572
Series 2017-500K, Class D, 2.00%, 07/15/32(d)			360		318,659
Series 2017-GPTX, Class A, 2.86%, 05/10/34			570		553,600
Series 2018-HULA, Class D, 2.50%, 07/15/25(d)			276		197,959
Series 2019-BOCA, Class A, 1.90%, 06/15/38(d)			317		255,844
Series 2019-SOHO, Class A, 1.60%, 06/15/36(d)			760		718,689
GS Mortgage Securities Trust:
Series 2014-GC20, Class B, 4.53%, 04/10/47(d)			400		399,044
Series 2015-GC28, Class B, 3.98%, 02/10/48			150		145,664
Series 2015-GC32, Class C, 4.43%, 07/10/48(d)			790		672,631
Series 2015-GS1, Class A3, 3.73%, 11/10/48			150		161,126
Series 2017-GS6, Class A3, 3.43%, 05/10/50			300		305,180
Series 2017-GS7, Class A4, 3.43%, 08/10/50			403		416,361
Series 2017-GS7, Class D, 3.00%, 08/10/50(b)			150		99,177
Series 2017-GS7, Class E, 3.00%, 08/10/50(b)			50		30,643
Series 2019-GSA1, Class C, 3.81%, 11/10/52(d)			110		79,130
HMH Trust, Series 2017-NSS, Class A, 3.06%, 07/05/31(b)			1,890		1,768,379
Hudson Yards Mortgage Trust, Series 2016- 10HY, Class A, 2.84%, 08/10/38(b)			660		675,564
IMT Trust(b):
Series 2017-APTS, Class AFX, 3.48%, 06/15/34			440		433,147
Series 2017-APTS, Class DFX, 3.50%, 06/15/34(d)			730		645,984
JPMBB Commercial Mortgage Securities Trust:
Series 2014-C21, Class A5, 3.77%, 08/15/47			450		475,097
Series 2014-C26, Class A4, 3.49%, 01/15/48			753		789,124
Series 2015-C33, Class D1, 4.12%, 12/15/48(b)(d)			553		417,104
JPMCC Commercial Mortgage Securities Trust:
Series 2017-JP5, Class D, 4.63%, 03/15/50(b)(d)			520		416,710
Series 2017-JP6, Class A5, 3.49%, 07/15/50			270		286,717

SCHEDULESOF INVESTMENTS 33

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2017-JP7, Class B, 4.05%, 09/15/50	USD		90	$	89,617
Series 2019-COR5, Class C, 3.75%, 06/13/52			219		157,870
JPMDB Commercial Mortgage Securities Trust:
Series 2017-C5, Class A5, 3.69%, 03/15/50			420		454,779
Series 2018-C8, Class A4, 4.21%, 06/15/51			200		223,906
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2012-CBX, Class A4FL, 2.10%, 06/15/45(b)(d)			105		105,484
Series 2013-C16, Class C, 5.03%, 12/15/46(d)			340		309,861
Series 2014-C20, Class A5, 3.80%, 07/15/47			480		506,696
Series 2015-JP1, Class A5, 3.91%, 01/15/49			50		53,802
Series 2015-JP1, Class C, 4.74%, 01/15/49(d)			730		624,035
Series 2015-JP1, Class D, 4.24%, 01/15/49(d)			770		596,438
Series 2015-JP1, Class E, 4.24%, 01/15/49(b)(d)			299		212,141
Series 2015-UES, Class C, 3.62%, 09/05/32(b)(d)			710		701,005
Series 2016-NINE, Class A, 2.85%, 09/06/38(b)(d)			1,020		1,043,865
MAD Mortgage Trust, Series 2017-330M, Class D, 3.84%, 08/15/34(b)(d)			300		265,878
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2014-C16, Class A5, 3.89%, 06/15/47			1,120		1,165,783
Series 2015-C23, Class A4, 3.72%, 07/15/50			248		262,849
Series 2015-C23, Class D, 4.15%, 07/15/50(b)(d)			424		333,589
Series 2015-C25, Class C, 4.53%, 10/15/48(d)			320		272,433
Series 2015-C26, Class A5, 3.53%, 10/15/48			74		76,516
Series 2015-C26, Class D, 3.06%, 10/15/48(b)			313		227,568
Series 2016-C31, Class A5, 3.10%, 11/15/49			460		465,650
Series 2017-C33, Class C, 4.56%, 05/15/50(d)			585		475,231
Morgan Stanley Capital Barclays Bank Trust, Series 2016-MART, Class A, 2.20%, 09/13/31(b)			200		186,738
Morgan Stanley Capital I Trust:
Series 2007-T27, Class AJ, 5.95%, 06/11/42(d)			318		316,981
Series 2014-CPT, Class E, 3.45%, 07/13/29(b)(d)			350		345,213
Series 2017-H1, Class C, 4.28%, 06/15/50(d)			121		101,085
Series 2017-H1, Class D, 2.55%, 06/15/50(b)			2,440		1,563,411
Series 2017-HR2, Class D, 2.73%, 12/15/50			1,360		859,155
Series 2018-H3, Class A5, 4.18%, 07/15/51			37		40,671
Series 2018-H3, Class C, 4.85%, 07/15/51(d)			550		445,732
Series 2018-H3, Class D, 3.00%, 07/15/51(b)			510		321,457
Series 2019-AGLN, Class D, 2.45%, 03/15/34(b)(d)			1,700		1,430,453
Series 2019-H6, Class A4, 3.42%, 06/15/52			420		443,581
Series 2019-L2, Class A4, 4.07%, 03/15/52			347		388,899
Series 2020-L4, Class D, 2.50%, 02/15/53(b)			875		481,381
Natixis Commercial Mortgage Securities Trust(b)(d):
Series 2018-FL1, Class A, 2.61%, 06/15/35			178		165,283
Series 2019-10K, Class D, 4.13%, 05/15/39			900		809,224
Series 2019-LVL, Class D, 4.44%, 08/15/38			310		262,904
Prima Capital CRE Securitization Ltd., Series 2015-4A, Class C, 4.00%, 08/24/49(b)(c)			370		380,656

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Scorpio European Loan Conduit No. 34 DAC, Series 34A, Class C, 2.86%, 05/17/29(b)(d)	GBP		260	$	315,707
SG Commercial Mortgage Securities Trust, Series 2019-PREZ, Class D, 3.59%, 09/15/39(b)(d)	USD		460		429,402
VNDO Mortgage Trust, Series 2013-PENN, Class D, 3.95%, 12/13/29(b)(d)			150		147,588
Wells Fargo Commercial Mortgage Trust:
Series 2014-LC18, Class A5, 3.41%, 12/15/47			130		133,306
Series 2015-C27, Class C, 3.89%, 02/15/48			425		354,796
Series 2015-C28, Class A4, 3.54%, 05/15/48			220		227,233
Series 2015-C30, Class A4, 3.66%, 09/15/58			390		405,578
Series 2015-C31, Class A4, 3.70%, 11/15/48			250		260,647
Series 2015-NXS1, Class A5, 3.15%, 05/15/48			89		90,284
Series 2015-NXS2, Class A5, 3.77%, 07/15/58(d)			890		929,412
Series 2015-NXS4, Class A4, 3.72%, 12/15/48			150		157,060
Series 2015-NXS4, Class D, 3.67%, 12/15/48(d)			181		136,552
Series 2015-P2, Class A4, 3.81%, 12/15/48			510		535,051
Series 2016-NXS5, Class D, 4.97%, 01/15/59(d)			2,717		2,183,096
Series 2017-C39, Class D, 4.35%, 09/15/50(b)(d)			120		87,810
Series 2017-C41, Class C, 4.51%, 11/15/50(d)			200		160,380
Series 2017-HSDB, Class A, 1.65%, 12/13/31(b)(d)			397		371,485
Series 2018-1745, Class A, 3.75%, 06/15/36(b)(d)			210		207,206
Series 2018-C44, Class D, 3.00%, 05/15/51(b)			83		52,752
Series 2018-C45, Class C, 4.73%, 06/15/51			130		104,004
Series 2019-C52, Class C, 3.56%, 08/15/52			380		267,018
Series 2020-SDAL, Class D, 3.74%, 02/15/37(b)(d)			720		525,754
WFRBS Commercial Mortgage Trust, Series 2014-C21, Class A5, 3.68%, 08/15/47			485		509,904
					84,680,718
Interest Only Commercial Mortgage-Backed Securities — 0.3%(d)
245 Park Avenue Trust, Series 2017-245P, Class XA, 0.15%, 06/05/37(b)			11,000		134,382
Banc of America Commercial Mortgage Trust:
Series 2017-BNK3, Class XB, 0.63%, 02/15/50			4,185		157,068
Series 2017-BNK3, Class XD, 1.29%, 02/15/50(b)			2,000		148,880
BANK:
Series 2019-BN20, Class XA, 0.84%, 09/15/62			2,475		150,670
Series 2019-BN20, Class XB, 0.36%, 09/15/62			8,371		253,202
Barclays Commercial Mortgage Trust, Series 2019-C3, Class XA, 1.35%, 05/15/52			2,197		200,561
BBCMS Trust, Series 2015-SRCH, Class XA, 0.96%, 08/10/35(b)			7,280		390,936
BB-UBS Trust, Series 2012-SHOW, Class XA, 0.60%, 11/05/36(b)			65,905		1,708,001
Benchmark Mortgage Trust:
Series 2019-B13, Class XA, 1.27%, 08/15/57			12,368		931,643
Series 2019-B9, Class XA, 1.05%, 03/15/52			4,945		358,960

34 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Interest Only Commercial Mortgage-Backed Securities (continued)
Series 2020-B17, Class XB, 0.65%, 03/15/53	USD		1,560	$	65,181
CFCRE Commercial Mortgage Trust, Series 2016-C4, Class XB, 0.73%, 05/10/58			2,030		81,971
Commercial Mortgage Trust:
Series 2013-CR6, Class XA, 1.05%, 03/10/46			14,977		317,422
Series 2015-3BP, Class XA, 0.06%, 02/10/35(b)			40,878		184,360
Series 2018-COR3, Class XD, 1.75%, 05/10/51(b)			770		83,252
CSAIL Commercial Mortgage Trust:
Series 2017-CX10, Class XB, 0.13%, 11/15/50			3,170		46,479
Series 2019-C16, Class XA, 1.57%, 06/15/52			9,087		996,467
Series 2019-C17, Class XA, 1.37%, 09/15/52			8,613		797,749
Series 2019-C17, Class XB, 0.56%, 09/15/52			4,040		180,543
DBGS Mortgage Trust, Series 2019-1735, Class X, 0.29%, 04/10/37(b)			5,975		151,108
DBJPM Mortgage Trust, Series 2017-C6, Class XD, 1.00%, 06/10/50			3,040		169,510
GS Mortgage Securities Trust, Series 2019- GSA1, Class XA, 0.83%, 11/10/52			3,088		189,142
JPMBB Commercial Mortgage Securities Trust, Series 2014-C22, Class XA, 0.84%, 09/15/47			957		28,772
JPMDB Commercial Mortgage Securities Trust, Series 2016-C4, Class XC, 0.75%, 12/15/49(b)			1,800		72,971
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2013-LC11, Class XB, 0.51%, 04/15/46			4,040		60,730
Series 2016-JP3, Class XC, 0.75%, 08/15/49(b)			4,330		172,428
Morgan Stanley Capital I Trust:
Series 2017-H1, Class XD, 2.20%, 06/15/50(b)			3,030		400,384
Series 2019-H6, Class XB, 0.72%, 06/15/52			5,210		294,124
Series 2019-L2, Class XA, 1.03%, 03/15/52			2,053		147,556
Olympic Tower Mortgage Trust, Series 2017-OT, Class XA, 0.38%, 05/10/39(b)			10,700		274,883
One Market Plaza Trust(b):
Series 2017-1MKT, Class XCP, 0.09%, 02/10/32			17,050		46,206
Series 2017-1MKT, Class XNCP, 0.00%, 02/10/32(c)			3,410		34
UBS Commercial Mortgage Trust:
Series 2019-C17, Class XA, 1.64%, 10/15/52			6,846		696,350
Series 2019-C18, Class XA, 1.05%, 12/15/52			7,335		506,716
Wells Fargo Commercial Mortgage Trust:
Series 2016-BNK1, Class XD, 1.26%, 08/15/49(b)			1,180		77,007
Series 2019-C50, Class XA, 1.42%, 05/15/52			4,755		440,833
					10,916,481
Total Non-Agency Mortgage-Backed Securities — 2.7% (Cost: $115,599,388)					105,435,226

Security		Beneficial Interest (000)		Value
Other Interests — 0.0%(j)
Capital Markets — 0.0%
Lehman Brothers Holdings, Inc.(c)(k)(l)	USD		16,030	$	2
Total Other Interests — 0.0%					2
		Par (000)
Capital Trusts — 0.4%
Banks — 0.1%
JPMorgan Chase & Co.(e)(m):
Series FF, 5.00%			2,423		2,275,778
Series HH, 4.60%			705		617,016
					2,892,794
Capital Markets — 0.2%(e)(m)
Bank of New York Mellon Corp. (The), Series F, 4.62%			2,494		2,250,835
State Street Corp.:
Series F, 5.25%			1,110		1,043,400
Series H, 5.63%			3,780		3,326,400
					6,620,635
Entertainment — 0.1%
NBCUniversal Enterprise, Inc., 5.25%(b)(e)			5,050		5,050,000
Total Capital Trusts — 0.4% (Cost: $15,743,100)					14,563,429
U.S. Government Sponsored Agency Securities — 37.4%
Agency Obligations — 0.1%
Federal National Mortgage Association, 6.63%, 11/15/30			1,500		2,278,611
Collateralized Mortgage Obligations — 0.0%
Federal Home Loan Mortgage Corp.:
Series 1591, Class PK, 6.35%, 10/15/23			207		221,717
Series 2996, Class MK, 5.50%, 06/15/35			6		7,251
Federal National Mortgage Association:
Series 2005-29, Class WB, 4.75%, 04/25/35			81		85,499
Series 2005-62, Class CQ, 4.75%, 07/25/35			33		33,324
					347,791
Commercial Mortgage-Backed Securities — 0.2%
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes(d):
Series KL4F, Class A2AS, 3.68%, 10/25/25			382		430,027
Series KW06, Class A2, 3.80%, 06/25/28			240		284,971
Federal Home Loan Mortgage Corp. Variable Rate Notes(d):
Series 2017-K64, Class B, 3.98%, 05/25/50(b)			664		638,410
Series 2018-K77, Class B, 4.16%, 05/25/51(b)			180		172,651
Series 2018-K80, Class B, 4.23%, 08/25/50(b)			340		326,902
Series 2018-SB52, Class A10F, 3.48%, 06/25/28			545		573,678
Series 2018-SB53, Class A10F, 3.66%, 06/25/28			324		345,507
Series 2019-K103, Class B, 3.57%, 12/25/51(b)			201		177,930
Federal National Mortgage Association ACES Variable Rate Notes, Series 2006-M2, Class A2A, 5.27%, 10/25/32(d)			3,958		4,484,855
Government National Mortgage Association: Series 2015-97, Class VA, 2.25%, 12/16/38			237		236,006

SCHEDULESOF INVESTMENTS 35

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)			Value
Commercial Mortgage-Backed Securities (continued)
Series 2016-158, Class VA, 2.00%, 03/16/35	USD		152		$	148,420
						7,819,357
Interest Only Commercial Mortgage-Backed Securities — 0.1%
Government National Mortgage Association Variable Rate Notes(d):
Series 2012-23, 0.34%, 06/16/53			823			10,447
Series 2013-30, 0.77%, 09/16/53			2,755			94,147
Series 2013-63, 0.79%, 09/16/51			4,230			179,222
Series 2013-78, 0.75%, 10/16/54			2,971			105,398
Series 2013-191, 0.72%, 11/16/53			810			22,225
Series 2015-22, 0.65%, 03/16/55			2,079			75,622
Series 2015-37, 0.72%, 10/16/56			508			24,386
Series 2015-48, 0.66%, 02/16/50			1,356			51,298
Series 2016-26, 0.93%, 02/16/58			7,657			427,855
Series 2016-67, 1.11%, 07/16/57			874			55,912
Series 2016-92, 0.96%, 04/16/58			1,782			110,318
Series 2016-96, 0.98%, 12/16/57			3,906			238,967
Series 2016-110, 1.01%, 05/16/58			4,149			264,723
Series 2016-113, 1.15%, 02/16/58			1,835			138,871
Series 2016-128, 0.95%, 09/16/56			3,101			205,391
Series 2016-152, 0.88%, 08/15/58			2,697			169,459
Series 2016-162, 0.98%, 09/16/58			5,342			379,333
Series 2016-165, 0.96%, 12/16/57			1,569			100,711
						2,654,285
Mortgage-Backed Securities — 37.0%
Federal Home Loan Mortgage Corp.:
2.50%, 01/01/29 - 04/01/31			6,713			6,995,354
3.00%, 09/01/27 - 02/01/47			16,809			17,754,223
3.50%, 11/01/41 - 01/01/48			13,796			14,821,934
4.00%, 08/01/40 - 02/01/47			5,102			5,540,722
4.50%, 02/01/39 - 04/01/49			33,077			36,186,489
5.00%, 07/01/35 - 11/01/41			3,597			3,977,411
5.50%, 05/01/36 - 06/01/41			2,393			2,708,962
6.00%, 06/01/29 - 12/01/32			5			5,561
8.00%, 11/01/22			—	(n)		191
Federal National Mortgage Association:
4.00%, 01/01/41			260			284,061
7.00%, 06/01/32			12			13,939
Government National Mortgage Association:
2.50%, 04/15/50(o)			9,282			9,700,415
3.00%, 12/20/44 - 12/20/46			71,469			76,602,519
3.00%, 04/15/50(o)			47,906			50,639,482
3.50%, 01/15/42 - 04/20/48			17,781			19,140,211
3.50%, 11/20/47(p)			12,886			13,690,821
3.50%, 04/15/50(o)			63,087			66,493,645
4.00%, 04/20/39 - 12/20/47			25,782			27,760,028
4.00%, 04/15/50(o)			23,274			24,725,237
4.50%, 12/20/39 - 07/20/49			24,346			26,182,720
4.50%, 04/15/50(o)			5,810			6,165,863
5.00%, 12/15/38 - 07/20/41			4,856			5,375,792
5.00%, 04/15/50(o)			1,010			1,074,388
5.50%, 03/15/32 - 11/15/33			5			5,211
5.50%, 04/15/50(o)			4,400			4,733,609
6.00%, 12/15/36			46			50,532
7.50%, 11/15/29			—	(n)		360
Uniform Mortgage-Backed Securities:
2.00%, 10/01/31 - 03/01/32			3,816			3,929,681
2.00%, 04/25/35(o)			670			687,836
2.50%, 09/01/27 - 02/01/33			17,969			18,722,188
2.50%, 04/25/35 - 04/25/50(o)			101,438			105,087,051
3.00%, 04/01/28 - 03/01/47			79,260			83,837,051
3.00%, 04/25/35 - 04/25/50(o)			105,927			111,020,603
3.50%, 08/01/27 - 01/01/48			77,034			82,519,829
3.50%, 04/25/35 - 04/25/50(o)			133,021			140,570,333

Security			Par (000)		Value
Mortgage-Backed Securities (continued)
4.00%, 08/01/33 - 03/01/50		USD		64,066	$	69,282,317
4.00%, 04/25/50(o)				216,744		231,139,475
4.50%, 02/01/25 - 05/01/49				76,956		84,638,441
4.50%, 04/25/50(o)				43,926		47,266,778
5.00%, 11/01/32 - 06/01/45				4,672		5,150,836
5.00%, 04/25/50(o)				13,305		14,352,249
5.50%, 10/01/21 - 04/01/41				5,491		6,191,308
6.00%, 01/01/21 - 06/01/41				7,907		9,083,164
6.50%, 05/01/40				1,662		1,939,526
						1,436,048,346
Total U.S. Government Sponsored Agency Securities — 37.4% (Cost: $1,408,893,204)						1,449,148,390
U.S. Treasury Obligations — 21.0%
U.S. Treasury Bonds:
4.25%, 05/15/39				1,764		2,743,709
4.50%, 08/15/39				1,764		2,827,017
4.38%, 11/15/39				1,764		2,794,424
3.13%, 02/15/43				6,784		9,291,960
2.88%, 05/15/43 - 11/15/46				13,320		17,796,303
3.63%, 08/15/43				6,784		10,015,410
3.75%, 11/15/43				6,784		10,213,100
3.00%, 02/15/48				6,536		9,073,806
2.25%, 08/15/49				9,235		11,250,467
U.S. Treasury Inflation Linked Notes:
0.50%, 04/15/24				316,972		321,550,971
0.13%, 10/15/24				70,796		71,658,785
0.25%, 01/15/25				50,145		50,594,913
U.S. Treasury Notes:
2.00%, 07/31/20 - 02/15/25				42,438		43,879,060
2.50%, 12/31/20				19,591		19,949,148
1.13%, 07/31/21				29,384		29,758,187
1.75%, 07/31/21 - 07/31/24				65,913		68,548,149
1.50%, 01/31/22 - 08/15/26				45,058		46,830,830
2.13%, 12/31/22 - 05/15/25				40,484		43,375,554
2.75%, 05/31/23				13,062		14,071,754
2.25%, 08/15/27				13,062		14,655,462
2.88%, 08/15/28				3,916		4,630,670
3.13%, 11/15/28				3,916		4,727,499
1.63%, 08/15/29				3,925		4,260,005
Total U.S. Treasury Obligations — 21.0% (Cost: $781,536,029)						814,497,183
Total Long-Term Investments — 108.5% (Cost: $4,183,937,920)						4,203,670,373
	Shares
Short-Term Securities — 11.9%(q)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.21%*				461,409,601		461,409,601
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 0.27%				29,061		29,061
Total Short-Term Securities — 11.9% (Cost: $461,438,662)						461,438,662
Total Options Purchased — 0.0% (Cost: $195,168)						68,088
Total Investments Before TBA Sale Commitments — 120.4% (Cost: $4,645,571,750)						4,665,177,123

36 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security			Par (000)		Value
TBA Sale Commitments — (8.4)%(o)
Mortgage-Backed Securities — (8.4)%
Government National Mortgage Association:
2.50%, 04/15/50	��	USD		2,863	$	(2,992,059	)
3.00%, 04/15/50				34,170		(36,120,093	)
3.50%, 04/15/50				2,734		(2,881,612	)
4.00%, 04/15/50				780		(828,636	)
4.50%, 04/15/50				6,678		(7,258,934	)
5.00%, 04/15/50				987		(1,049,921	)
Uniform Mortgage-Backed Securities:
2.00%, 04/25/35				670		(687,836	)

Security		Par (000)		Value
Mortgage-Backed Securities (continued)
3.00%, 04/25/35 - 04/25/50	USD		14,125	$	(14,790,001	)
3.50%, 04/25/35 - 04/25/50			12,785		(13,509,509	)
4.00%, 04/25/35 - 04/25/50			147,785		(157,561,689	)
4.50%, 04/25/35 - 04/25/50			2,802		(2,946,002	)
2.50%, 04/25/50			69,910		(72,422,391	)
5.50%, 04/25/50			5,112		(5,595,443	)
6.00%, 04/25/50			6,269		(6,944,142	)
Total TBA Sale Commitments — (8.4)% (Proceeds: $322,318,664)					(325,588,268	)
Total Investments Net of TBA Sale Commitments — 112.0% (Cost: $4,323,253,086)					4,339,588,855
Liabilities in Excess of Other Assets — (12.0)%					(463,666,355	)
Net Assets — 100.0%				$	3,875,922,500

^(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)  Perpetual security with no stated maturity date.

^(f)  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.

^(g)  Zero-coupon bond.

^(h)  When-issued security.

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

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

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

^(l)  Non-income producing security.

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

⁽ⁿ⁾  Amount is less than 500.

^(o)  Represents or includes a TBA transaction.

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

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

* Investments in issuers considered to be an affiliate/affiliates of the Fund during the six months ended March 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Shares Held at 09/30/19	Shares Purchased	Shares Sold	Shares Held at 03/31/20		Value at 03/31/20		Income		Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class(b)	45,790,217	415,619,384	—	461,409,601	$	461,409,601	$	1,825,043	$	379		$	—

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

^(b)  Represents net shares purchased (sold).

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

SCHEDULESOF INVESTMENTS 37

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio     

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 Ultra Note		154		06/19/20	$	24,029	$	1,112,854
U.S. Treasury Ultra Bond		1,043		06/19/20		231,416		23,836,571
U.S. Treasury 2 Year Note		964		06/30/20		212,449		2,098,739
U.S. Treasury 5 Year Note		1,374		06/30/20		172,244		588,649
								27,636,813
Short Contracts
Euro-Buxl		61		06/08/20		14,121		567,929
U.S. Treasury 10 Year Note		507		06/19/20		70,315		(477,979)
U.S. Treasury Long Bond		8		06/19/20		1,433		(335)
								89,615
							$	27,726,428

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation     (Depreciation)
USD	810,000	BRL	3,887,028	Citibank NA		04/02/20	$	61,934
AUD	344,000	USD	210,568	Morgan Stanley & Co. International plc		04/03/20		1,028
AUD	344,000	USD	207,318	State Street Bank and Trust Co.		04/03/20		4,277
USD	452,847	AUD	688,000	Morgan Stanley & Co. International plc		04/03/20		29,656
USD	374,726	EUR	329,000	Morgan Stanley & Co. International plc		04/03/20		11,861
USD	30,774,404	EUR	27,469,000	UBS AG		04/03/20		477,980
RUB	72,385,251	USD	920,000	Goldman Sachs International		04/13/20		1,168
USD	820,000	KRW	975,045,600	Barclays Bank plc		04/13/20		19,180
USD	810,000	ZAR	13,104,216	Bank of America NA		04/14/20		78,710
IDR	22,408,686,724	USD	1,354,000	Deutsche Bank AG		04/15/20		22,722
USD	3,070,417	IDR	44,858,056,000	Bank of America NA		04/15/20		314,473
USD	1,531,107	IDR	22,430,710,000	HSBC Bank plc		04/15/20		153,031
USD	611,809	IDR	8,959,940,000	JPMorgan Chase Bank NA		04/15/20		61,337
USD	630,000	ZAR	11,211,796	BNP Paribas SA		04/17/20		4,622
AUD	1,260,000	USD	762,956	Goldman Sachs International		04/27/20		12,183
USD	750,000	CAD	1,052,772	Goldman Sachs International		04/27/20		1,689
USD	11,951,781	EUR	10,818,000	UBS AG		05/05/20		4,554
USD	344,913	COP	1,400,141,000	Natwest Markets plc		06/16/20		2,120
AUD	16,917,723	CAD	14,396,118	Citibank NA		06/17/20		171,123
AUD	14,430,000	CAD	12,276,611	JPMorgan Chase Bank NA		06/17/20		147,795
CNH	93,928,449	USD	13,228,800	JPMorgan Chase Bank NA		06/17/20		2,299
CNY	81,164,876	USD	11,395,000	HSBC Bank plc		06/17/20		38,177
GBP	31,865,723	EUR	34,975,000	Morgan Stanley & Co. International plc		06/17/20		946,197
USD	48,164,000	CNY	338,005,319	Citibank NA		06/17/20		551,355
USD	6,303,463	IDR	90,930,610,949	JPMorgan Chase Bank NA		06/17/20		798,160
USD	11,258,900	RUB	761,720,886	Citibank NA		06/17/20		1,619,659
USD	6,222,796	IDR	90,930,610,949	JPMorgan Chase Bank NA		07/15/20		746,591
								6,283,881
BRL	3,769,578	USD	810,000	Citibank NA		04/02/20		(84,537)
EUR	10,439,000	USD	11,682,666	Barclays Bank plc		04/03/20		(169,165)
EUR	10,818,000	USD	11,935,499	UBS AG		04/03/20		(3,987)
USD	12,720,058	EUR	11,569,000	UBS AG		04/03/20		(39,756)
JPY	62,530,812	USD	600,000	HSBC Bank plc		04/13/20		(18,192)
KRW	986,132,000	USD	820,000	BNP Paribas SA		04/13/20		(10,075)
MXN	12,875,249	USD	610,000	Barclays Bank plc		04/13/20		(68,391)
MXN	16,590,182	USD	710,000	UBS AG		04/13/20		(12,119)
RUB	101,560,239	USD	1,310,000	Morgan Stanley & Co. International plc		04/13/20		(17,553)

38 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio     

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation     (Depreciation)
USD	640,000	JPY	71,225,344	UBS AG		04/13/20	$	(22,705)
USD	570,000	KRW	700,535,700	Deutsche Bank AG		04/13/20		(5,360)
USD	780,000	KRW	955,562,400	JPMorgan Chase Bank NA		04/13/20		(4,818)
USD	920,000	RUB	74,032,400	Citibank NA		04/13/20		(22,130)
ZAR	13,079,002	USD	810,000	HSBC Bank plc		04/14/20		(80,117)
IDR	17,410,570,000	USD	1,113,875	Bank of America NA		04/15/20		(44,222)
IDR	6,039,015,000	USD	373,240	Citibank NA		04/15/20		(2,221)
IDR	11,122,415,000	USD	724,587	Deutsche Bank AG		04/15/20		(41,259)
IDR	49,011,721,863	USD	3,110,237	Goldman Sachs International		04/15/20		(99,104)
IDR	38,315,671,000	USD	2,650,686	HSBC Bank plc		04/15/20		(296,686)
IDR	15,325,195,000	USD	1,056,182	JPMorgan Chase Bank NA		04/15/20		(114,648)
USD	945,924	EUR	860,000	Bank of America NA		04/16/20		(3,057)
USD	958,665	EUR	870,000	JPMorgan Chase Bank NA		04/16/20		(1,352)
ZAR	19,039,483	USD	1,180,000	Morgan Stanley & Co. International plc		04/17/20		(118,005)
USD	1,140,000	COP	4,636,950,000	Natwest Markets plc		04/20/20		(45)
CNY	5,316,210	USD	750,000	Natwest Markets plc		04/24/20		(636)
KZT	48,069,000	USD	126,000	Citibank NA		04/24/20		(20,084)
KZT	48,000,000	USD	125,000	Goldman Sachs International		04/24/20		(19,236)
USD	762,957	AUD	1,260,000	JPMorgan Chase Bank NA		04/27/20		(12,183)
USD	210,600	AUD	344,000	Morgan Stanley & Co. International plc		05/05/20		(1,032)
USD	207,330	AUD	344,000	State Street Bank and Trust Co.		05/05/20		(4,303)
CNY	62,594,272	USD	8,819,200	Bank of America NA		06/17/20		(1,946)
CNY	104,152,551	USD	14,720,999	HSBC Bank plc		06/17/20		(49,697)
IDR	18,256,316,000	USD	1,112,173	Barclays Bank plc		06/17/20		(6,862)
JPY	64,162,972	USD	610,000	Deutsche Bank AG		06/17/20		(11,314)
RUB	46,555,000	USD	609,997	Bank of America NA		06/17/20		(20,864)
RUB	143,843,149	USD	1,912,833	Credit Suisse International		06/17/20		(92,562)
RUB	24,888,540	USD	325,234	Goldman Sachs International		06/17/20		(10,281)
RUB	164,085,000	USD	2,193,312	HSBC Bank plc		06/17/20		(116,888)
RUB	66,895,000	USD	909,208	Societe Generale SA		06/17/20		(62,682)
KZT	48,656,250	USD	125,000	Goldman Sachs International		07/24/20		(21,792)
KZT	51,546,000	USD	132,000	Natwest Markets plc		07/24/20		(22,662)
								(1,754,528)
Net Unrealized Appreciation							$	4,529,353

Interest Rate Caps Purchased

Description	Exercise Rate			Counterparty	Expiration Date		Notional Amount (000)			Value		Premiums Paid (Received)		Unrealized Appreciation (Depreciation)
2Y-10Y CMS Index Cap		0.50	%	Morgan Stanley & Co. International plc		05/06/20		USD	433,706	$	68,088	$	195,168	$	(127,080)

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Termination Date		Notional Amount (000)			Value		Upfront Premium Paid     (Received)		Unrealized Appreciation     (Depreciation)
28 day MXIBTIIE	Monthly	6.88%	Monthly		12/15/20		MXN	124,540	$	34,382	$	—	$	34,382
28 day MXIBTIIE	Monthly	6.88%	Monthly		12/16/20		MXN	240,954		66,460		—		66,460
28 day MXIBTIIE	Monthly	6.52%	Monthly		12/14/21		MXN	189,055		99,336		—		99,336
28 day MXIBTIIE	Monthly	6.51%	Monthly		12/15/21		MXN	161,073		83,770		—		83,770
28 day MXIBTIIE	Monthly	7.00%	Monthly		08/11/22		MXN	37,133		43,184		—		43,184
7.11%	Monthly	28 day MXIBTIIE	Monthly		10/14/22		MXN	14,801		(19,660)		—		(19,660)
7.11%	Monthly	28 day MXIBTIIE	Monthly		10/14/22		MXN	19,509		(25,810)		—		(25,810)
28 day MXIBTIIE	Monthly	6.77%	Monthly		03/09/23		MXN	89,473		92,799		—		92,799
28 day MXIBTIIE	Monthly	6.36%	Monthly		03/23/23		MXN	160,926		92,382		—		92,382

SCHEDULESOF INVESTMENTS 39

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio     

Centrally Cleared Interest Rate Swaps (continued)

Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Termination Date		Notional Amount (000)			Value		Upfront Premium Paid     (Received)		Unrealized Appreciation     (Depreciation)
28 day MXIBTIIE	Monthly	6.73%	Monthly		08/09/24		MXN	12,536	$	11,080	$	—	$	11,080
28 day MXIBTIIE	Monthly	6.67%	Monthly		08/12/24		MXN	27,583		21,566		—		21,566
28 day MXIBTIIE	Monthly	6.72%	Monthly		08/13/24		MXN	23,733		20,319		—		20,319
28 day MXIBTIIE	Monthly	6.59%	Monthly		11/08/24		MXN	35,449		19,280		—		19,280
28 day MXIBTIIE	Monthly	6.58%	Monthly		01/06/25		MXN	112,180		52,556		—		52,556
28 day MXIBTIIE	Monthly	6.32%	Monthly		07/17/25		MXN	14,506		(3,511)		—		(3,511)
2.91%	Semi-Annual	3 month LIBOR	Quarterly		08/23/26		USD	844		(125,870)		—		(125,870)
2.93%	Semi-Annual	3 month LIBOR	Quarterly		08/24/28		USD	1,870		(353,540)		—		(353,540)
3.16%	Semi-Annual	3 month LIBOR	Quarterly		10/03/28		USD	1,035		(227,780)		—		(227,780)
28 day MXIBTIIE	Monthly	7.14%	Monthly		03/15/30		MXN	50,838		21,002		—		21,002
									$	(98,055)	$	—	$	(98,055)

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	$	(1,515	)	$	739		$	(2,254)
United Mexican States		1.00			Quarterly	Bank of America NA		09/20/20	USD	1,491		(1,815	)		2,100			(3,915)
Republic of Chile		1.00			Quarterly	Citibank NA		06/20/25	USD	6,601		82,264			216,713			(134,449)
Republic of South Africa		1.00			Quarterly	Morgan Stanley & Co. International plc		06/20/25	USD	1,923		276,027			270,769			5,258
State of Qatar		1.00			Quarterly	Morgan Stanley & Co. International plc		06/20/25	USD	454		6,015			16,757			(10,742)
United Mexican States		1.00			Quarterly	Citibank NA		06/20/25	USD	6,185		395,998			638,116			(242,118)
CMBX.NA.9.AAA-		0.50			Monthly	Credit Suisse International		09/17/58	USD	1,280		8,281			14,661			(6,380)
CMBX.NA.9.AAA-		0.50			Monthly	Deutsche Bank AG		09/17/58	USD	1,030		6,663			11,953			(5,290)
CMBX.NA.9.AAA-		0.50			Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	720		4,658			8,242			(3,584)
CMBX.NA.9.AAA-		0.50			Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	860		5,563			9,849			(4,286)
CMBX.NA.9.AAA-		0.50			Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	1,570		10,156			19,382			(9,226)
CMBX.NA.9.BBB-		3.00			Monthly	Citigroup Global Markets, Inc.		09/17/58	USD	440		111,970			14,940			97,030
CMBX.NA.9.BBB-		3.00			Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	288		73,290			15,985			57,305
CMBX.NA.6.AAA-		0.50			Monthly	Deutsche Bank AG		05/11/63	USD	1,788		(267	)		(1,352	)		1,085
CMBX.NA.6.AAA-		0.50			Monthly	Deutsche Bank AG		05/11/63	USD	765		(114	)		(113	)		(1)
CMBX.NA.6.BBB-		3.00			Monthly	JPMorgan Securities LLC		05/11/63	USD	270		59,604			24,919			34,685
CMBX.NA.6.BBB-		3.00			Monthly	JPMorgan Securities LLC		05/11/63	USD	10		2,208			593			1,615
											$	1,038,986		$	1,264,253		$	(225,267)

OTC Credit Default Swaps — Sell Protection

																	Upfront
	Financing										Notional						Premium			Unrealized
	Rate Received			Payment			Termination		Credit		Amount						Paid			Appreciation
Reference Obligation/Index		by the Fund			Frequency	Counterparty		Date	Rating (a)			(000)	(b)		Value			(Received)			(Depreciation)
United Mexican States		1.00	%		Quarterly	Bank of America NA		06/20/20	BBB	USD		1,491		$	1,515		$	(830	)	$	2,345
United Mexican States		1.00			Quarterly	JPMorgan Chase Bank NA		09/20/20	BBB	USD		1,491			1,815			(1,873	)		3,688
CMBX.NA.3.AM		0.50			Monthly	Credit Suisse International		12/13/49	NR	USD		—			—			(4	)		4
CMBX.NA.3.AM		0.50			Monthly	Goldman Sachs International		12/13/49	NR	USD		—			—			(10	)		10
CMBX.NA.3.AM		0.50			Monthly	JPMorgan Chase Bank NA		12/13/49	NR	USD		1			—			(47	)		47
CMBX.NA.9.BBB-		3.00			Monthly	Deutsche Bank AG		09/17/58	NR	USD		531			(135,127	)		(61,460	)		(73,667)
CMBX.NA.9.BBB-		3.00			Monthly	Deutsche Bank AG		09/17/58	NR	USD		352			(89,576	)		(36,126	)		(53,450)
CMBX.NA.9.BBB-		3.00			Monthly	Morgan Stanley & Co. International plc		09/17/58	NR	USD		240			(61,075	)		254			(61,329)

40 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio     

OTC Credit Default Swaps — Sell Protection (continued)

																Upfront
	Financing										Notional					Premium		Unrealized
	Rate Received			Payment			Termination		Credit		Amount					Paid		Appreciation
Reference Obligation/Index		by the Fund			Frequency	Counterparty		Date	Rating (a)			(000)	(b)		Value		(Received)		(Depreciation)
CMBX.NA.9.BBB-		3.00	%		Monthly	Morgan Stanley & Co. International plc		09/17/58	NR	USD		207		$	(52,676)	$	(24,376)	$	(28,300)
CMBX.NA.10.A		2.00			Monthly	Deutsche Bank AG		11/17/59	A-	USD		4,050			(541,737)		(168,033)		(373,704)
CMBX.NA.10.A		2.00			Monthly	Deutsche Bank AG		11/17/59	A-	USD		2,020			(270,199)		(85,245)		(184,954)
CMBX.NA.10.BBB-		3.00			Monthly	JPMorgan Securities LLC		11/17/59	NR	USD		35			(9,741)		(2,895)		(6,846)
CMBX.NA.6.BBB-		3.00			Monthly	Credit Suisse International		05/11/63	NR	USD		280			(61,812)		(21,376)		(40,436)
														$	(1,218,613)	$	(402,021)	$	(816,592)

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

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

OTC Interest Rate Swaps

Paid by the Fund		Received by the Fund
											Upfront
								Notional			Premium		Unrealized
					Termination			Amount			Paid		Appreciation
Rate	Frequency	Rate	Frequency	Counterparty	Date			(000)	Value		(Received)		(Depreciation)
3.27%	Semi-Annual	3 month LIBOR	Quarterly	Deutsche Bank AG		05/16/21	USD	8,580	$	(342,536)	$	—	$	(342,536)
1 day BZDIOVER	At Termination	4.53%	At Termination	UBS AG		01/03/22	BRL	55,996		90,048		—		90,048
1day BZDIOVER	At Termination	5.69%	At Termination	UBS AG		01/03/22	BRL	27,132		149,926		—		149,926
5.73%	Monthly	28 day MXIBTIIE	Monthly	Bank of America NA		01/03/25	MXN	7,400		8,049		—		8,049
28 day MXIBTIIE	Monthly	6.43%	Monthly	Bank of America NA		06/06/25	MXN	6,011		132		—		132
28 day MXIBTIIE	Monthly	6.33%	Monthly	Citibank NA		06/09/25	MXN	3,006		(495)		—		(495)
28day MXIBTIIE	Monthly	6.33%	Monthly	Citibank NA		07/17/25	MXN	7,228		(1,677)		—		(1,677)
		28 day
6.31%	Monthly	MXIBTIIE	Monthly	Bank of America NA		08/11/25	MXN	7,575		2,016		—		2,016
		28 day
6.31%	Monthly	MXIBTIIE	Monthly	Bank of America NA		08/11/25	MXN	7,575		2,016		—		2,016
		28 day
6.31%	Monthly	MXIBTIIE	Monthly	Deutsche Bank AG		08/11/25	MXN	28,117		7,639		—		7,639
28 day MXIBTIIE	Monthly	6.27%	Monthly	Bank of America NA		12/05/25	MXN	901		(477)		—		(477)
1 day BZDIOVER	At Termination	7.20%	At Termination	Citibank NA		01/04/27	BRL	14,695		(54,493)		—		(54,493)
1 day BZDIOVER	At Termination	7.40%	At Termination	JPMorgan Chase Bank NA		01/04/27	BRL	13,584		24,666		—		24,666
1 day BZDIOVER	At Termination	7.45%	At Termination	JPMorgan Chase Bank NA		01/04/27	BRL	4,829		11,930		—		11,930
1 day BZDIOVER	At Termination	7.52%	At Termination	JPMorgan Chase Bank NA		01/04/27	BRL	2,413		8,183		—		8,183
1 day BZDIOVER	At Termination	7.55%	At Termination	Citibank NA		01/04/27	BRL	9,674		36,623		—		36,623
									$	(58,450)	$	—	$	(58,450)

SCHEDULESOF INVESTMENTS 41

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio     

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		0.01	%
28 day MXIBTIIE	Mexico Interbank TIIE 28-Day		6.71
3 month LIBOR	London Interbank Offered Rate		1.45

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)	$	—	$	—	$	658,116	$	(756,171	)
OTC Swaps		1,265,972		(403,740)		544,300		(1,644,609	)

^(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
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	28,204,742	$	—	$	28,204,742
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		6,283,881		—		—		6,283,881
Options purchased
Investments at value — unaffiliated(b)		—		—		—		—		68,088		—		68,088
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		—		—		—		658,116		—		658,116
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		1,469,044		—		—		341,228		—		1,810,272
	$	—	$	1,469,044	$	—	$	6,283,881	$	29,272,174	$	—	$	37,025,099
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		478,314		—		478,314
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		1,754,528		—		—		1,754,528
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		—		—		—		756,171		—		756,171
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		1,648,671		—		—		399,678		—		2,048,349
	$	—	$	1,648,671	$	—	$	1,754,528	$	1,634,163	$	—	$	5,037,362

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

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

42 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio     

For the six months ended March 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—		$	18,140,999		$	—		$	18,140,999
Forward foreign currency exchange contracts		—		—			—		(1,936,490	)		—			—			(1,936,490	)
Options purchased(a)		—		—			—		(482,447	)		534,453			—			52,006
Options written		—		—			—		—			122,084			—			122,084
Swaps		—		2,245,435			—		—			917,925			1,640,440			4,803,800
	$	—	$	2,245,435		$	—	$	(2,418,937	)	$	19,715,461		$	1,640,440		$	21,182,399
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			—		—			29,132,883			—			29,132,883
Forward foreign currency exchange contracts		—		—			—		1,245,251			—			—			1,245,251
Options purchased(b)		—		—			—		47,376			(117,937	)		—			(70,561	)
Swaps		—		(1,256,274	)		—		—			(106,381	)		(37,382	)		(1,400,037	)
	$	—	$	(1,256,274	)	$	—	$	1,292,627		$	28,908,565		$	(37,382	)	$	28,907,536

^(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	$	770,439,931
Average notional value of contracts — short		205,380,791
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		185,303,949
Average amounts sold — in USD		99,274,734
Options:
Average value of option contracts purchased		76,985
Average value of option contracts written		46,897
Average notional value of swaption contracts purchased		40,388,500
Average notional value of swaption contracts written		89,101,500
Credit default swaps:
Average notional value — buy protection		55,353,189
Average notional value — sell protection		10,577,286
Interest rate swaps:
Average notional value — pays fixed rate		764,465,335
Average notional value — receives fixed rate		757,216,977
Inflation swaps:
Average notional value — pays fixed rate		—	(a)
Average notional value — receives fixed rate		—	(a)

^(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	$	367,543	$	3,596,441
Forward foreign currency exchange contracts		6,283,881		1,754,528
Options(a)		68,088		—
Swaps — Centrally cleared		265,970		—
Swaps — OTC(b)		1,810,272		2,048,349
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	8,795,754	$	7,399,318
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(633,513)		(3,596,441)
Total derivative assets and liabilities subject to an MNA	$	8,162,241	$	3,802,877

SCHEDULESOF INVESTMENTS 43

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core Bond Portfolio     

^(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)(c)
Bank of America NA	$	409,841	$	(75,311)	$	—	$	—	$	334,530
Barclays Bank plc		19,180		(19,180)		—		—		—
BNP Paribas SA		4,622		(4,622)		—		—		—
Citibank NA		3,295,523		(562,204)		—		(2,290,000)		443,319
Citigroup Global Markets, Inc.		111,970		—		—		—		111,970
Credit Suisse International		14,665		(14,665)		—		—		—
Deutsche Bank AG		43,399		(43,399)		—		—		—
Goldman Sachs International		15,050		(15,050)		—		—		—
HSBC Bank plc		191,208		(191,208)		—		—		—
JPMorgan Chase Bank NA		1,805,435		(137,175)		—		(1,500,000)		168,260
JPMorgan Securities LLC		61,812		(9,741)		—		—		52,071
Morgan Stanley & Co. International plc		1,460,631		(278,433)		—		(440,000)		742,198
Natwest Markets plc		2,120		(2,120)		—		—		—
State Street Bank and Trust Co.		4,277		(4,277)		—		—		—
UBS AG		722,508		(78,567)		—		—		643,941
	$	8,162,241	$	(1,435,952)	$	—	$	(4,230,000)	$	2,496,289
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	$	75,311	$	(75,311)	$	—	$	—	$	—
Barclays Bank plc		244,418		(19,180)		—		—		225,238
BNP Paribas SA		10,075		(4,622)		—		—		5,453
Citibank NA		562,204		(562,204)		—		—		—
Credit Suisse International		160,758		(14,665)		—		—		146,093
Deutsche Bank AG		1,443,864		(43,399)		—		(1,350,000)		50,465
Goldman Sachs International		150,423		(15,050)		—		—		135,373
HSBC Bank plc		561,580		(191,208)		—		—		370,372
JPMorgan Chase Bank NA		137,175		(137,175)		—		—		—
JPMorgan Securities LLC		9,741		(9,741)		—		—		—
Morgan Stanley & Co. International plc		278,433		(278,433)		—		—		—
Natwest Markets plc		23,343		(2,120)		—		—		21,223
Societe Generale SA		62,682		—		—		—		62,682
State Street Bank and Trust Co.		4,303		(4,277)		—		—		26
UBS AG		78,567		(78,567)		—		—		—
	$	3,802,877	$	(1,435,952)	$	—	$	(1,350,000)	$	1,016,925

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

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

44 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Core 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	$	—	$	224,205,757	$	10,355,406	$	234,561,163
Corporate Bonds(a)		—		1,374,029,431		—		1,374,029,431
Foreign Agency Obligations(a)		—		7,288,226		—		7,288,226
Foreign Government Obligations(a)		—		52,528,399		—		52,528,399
Municipal Bonds		—		151,618,924		—		151,618,924
Non-Agency Mortgage-Backed Securities		—		105,054,536		380,690		105,435,226
Other Interests		—		—		2		2
Capital Trusts(a)		—		14,563,429		—		14,563,429
U.S. Government Sponsored Agency Securities		—		1,449,148,390		—		1,449,148,390
U.S. Treasury Obligations		—		814,497,183		—		814,497,183
Short-Term Securities		461,438,662		—		—		461,438,662
Options Purchased:
Interest rate contracts		—		68,088		—		68,088
Liabilities:
Investments:
TBA Sale Commitments		—		(325,588,268)		—		(325,588,268)
	$	461,438,662	$	3,867,414,095	$	10,736,098	$	4,339,588,855
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—	$	203,072	$	—	$	203,072
Foreign currency exchange contracts		—		6,283,881		—		6,283,881
Interest rate contracts		28,204,742		999,344		—		29,204,086
Liabilities:
Credit contracts		—		(1,244,931)		—		(1,244,931)
Foreign currency exchange contracts		—		(1,754,528)		—		(1,754,528)
Interest rate contracts		(478,314)		(1,155,849)		—		(1,634,163)
	$	27,726,428	$	3,330,989	$	—	$	31,057,417

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

^(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.

See notes to financial statements.

SCHEDULESOF INVESTMENTS 45

Consolidated Schedule of Investments  (unaudited)  March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 0.3%
AIMCO CLO, Series 2017-AA, Class C, (LIBOR USD 3 Month + 2.45%), 4.27%, 07/20/29(a)(b)	USD		750	$	615,393
Allegro CLO II-S Ltd., Series 2014-1RA, Class B, (LIBOR USD 3 Month + 2.15%), 3.97%, 10/21/28(a)(b)			1,830		1,505,657
ALM VII R Ltd., Series 2013-7RA, Class BR, (LIBOR USD 3 Month + 2.70%), 4.53%, 10/15/28(a)(b)			1,000		860,695
ALM VII R-2 Ltd., Series 2013-7R2A, Class BR2 , (LIBOR USD 3 Month + 2.20%), 4.03%, 10/15/27(a)(b)			1,500		1,232,177
AMMC CLO 22 Ltd., Series 2018-22A, Class D, (LIBOR USD 3 Month + 2.70%), 4.49%, 04/25/31(a)(b)			510		354,986
Anchorage Capital CLO 4-R Ltd., Series 2014-4RA, Class D, (LIBOR USD 3 Month + 2.60%), 4.40%, 01/28/31(a)(b)			5,250		3,677,138
Anchorage Capital Europe CLO 2 DAC, Series 2X, Class E, (EURIBOR 3 Month + 5.66%), 5.66%, 05/15/31(a)	EUR		1,561		1,125,476
Apidos CLO XV, Series 2013-15A, Class DRR, (LIBOR USD 3 Month + 2.70%), 4.52%, 04/20/31(a)(b)	USD		1,000		699,897
Aqueduct European CLO DAC, Series 2017- 2X, Class E, (EURIBOR 3 Month + 4.40%), 4.40%, 10/15/30(a)	EUR		884		588,113
Arbour CLO IV DAC, Series 4X, Class E, (EURIBOR 3 Month + 5.60%), 5.60%, 01/15/30(a)			917		666,782
Ares XLIV CLO Ltd., Series 2017-44A, Class C, (LIBOR USD 3 Month + 3.45%), 5.28%, 10/15/29(a)(b)	USD		1,000		741,376
Ares XLIX CLO Ltd., Series 2018-49A, Class E, (LIBOR USD 3 Month + 5.70%), 7.50%, 07/22/30(a)(b)			500		299,308
Ares XLVI CLO Ltd., Series 2017-46A, Class SUB, 0.00%, 01/15/30(a)(b)(c)			2,000		1,089,436
Assurant CLO I Ltd., Series 2017-1A, Class E, (LIBOR USD 3 Month + 6.46%), 8.28%, 10/20/29(a)(b)			350		231,037
Atrium VIII, Series 8A, Class SUB, 0.00%, 10/23/24(b)(c)			11,500		611,800
Avoca Capital CLO X Ltd., Series 10X, Class ER, (EURIBOR 3 Month + 6.05%), 6.05%, 01/15/30(a)	EUR		800		620,592
Avoca CLO XV DAC, Series 15X, Class ER, (EURIBOR 3 Month + 4.13%), 4.13%, 04/15/31(a)			620		413,864
Avoca CLO XVIII DAC, Series 18X, Class E, (EURIBOR 3 Month + 4.60%), 4.60%, 04/15/31(a)			700		465,322
Barings Euro CLO BV, Series 2018-3X, Class E, (EURIBOR 3 Month + 5.79%), 5.79%, 07/27/31(a)			1,200		814,731
Benefit Street Partners CLO VI Ltd., Series 2015-VIA, Class CR, (LIBOR USD 3 Month + 3.45%), 5.27%, 10/18/29(a)(b)	USD		3,250		2,470,989
Benefit Street Partners CLO XII Ltd., Series 2017-12A, Class C, (LIBOR USD 3 Month + 3.05%), 4.88%, 10/15/30(a)(b)			2,000		1,484,975
Bilbao CLO I DAC, Series 1X, Class D, (EURIBOR 3 Month + 4.73%), 4.73%, 07/20/31(a)	EUR		400		284,184
Cairn CLO IV BV, Series 2014-4X, Class ERR, (EURIBOR 3 Month + 5.88%), 5.88%, 04/30/31(a)			400		305,649

Security		Par (000)		Value
Asset-Backed Securities (continued)
Carlyle Global Market Strategies CLO Ltd.(a)(b):
Series 2015-4A, Class SBB1, (LIBOR USD 3 Month + 8.50%), 10.32%, 07/20/32	USD		1,581	$	1,147,648
Series 2016-1A, Class BR, (LIBOR USD 3 Month + 1.85%), 3.67%, 04/20/27			500		411,064
Carlyle Global Market Strategies Euro CLO Ltd., Series 2014-2X, Class DRR, (EURIBOR 3 Month + 5.70%), 5.70%, 11/17/31(a)	EUR		1,255		897,778
CIFC Funding Ltd., Series 2014-4RA, Class B, (LIBOR USD 3 Month + 2.20%), 4.04%, 10/17/30(a)(b)	USD		850		695,990
CVC Cordatus Loan Fund VIII DAC, Series��8X, Class F, (EURIBOR 3 Month + 7.65%), 4.90%, 04/23/30(a)	EUR		551		385,566
Galaxy XVIII CLO Ltd., Series 2018-28A, Class C, (LIBOR USD 3 Month + 1.95%), 3.78%, 07/15/31(a)(b)	USD		250		198,152
Greene King Finance plc, Series B1, 5.70%, 12/15/34(d)	GBP		100		114,018
Greywolf CLO V Ltd., Series 2015-1A, Class CR, (LIBOR USD 3 Month + 3.00%), 4.79%, 01/27/31(a)(b)	USD		2,000		1,425,430
Harvest CLO XVI DAC, Series 16X, Class ER, (EURIBOR 3 Month + 5.57%), 5.57%, 10/15/31(a)	EUR		1,125		797,971
Harvest CLO XXIII DAC, Series 23X, Class E, (EURIBOR 3 Month + 5.33%), 5.33%, 10/20/32(a)			148		109,493
Invesco Euro CLO III DAC, Series 3X, Class F, (EURIBOR 3 Month + 8.07%), 8.07%, 07/15/32(a)			300		227,390
Jamestown CLO IV Ltd., Series 2014-4A, Class SUB, 0.00%, 07/15/26(b)(c)	USD		2,000		66,200
Neuberger Berman Loan Advisers CLO Ltd., Series 2018-27A, Class D, (LIBOR USD 3 Month + 2.60%), 4.43%, 01/15/30(a)(b)			1,000		697,275
OCP Euro CLO DAC(a):
Series 2017-2X, Class E, (EURIBOR 3 Month + 5.00%), 5.00%, 01/15/32	EUR		1,347		923,446
Series 2017-2X, Class F, (EURIBOR 3 Month + 6.40%), 6.40%, 01/15/32			900		515,172
Series 2019-3X, Class E, (EURIBOR 3 Month + 5.75%), 5.75%, 04/20/30			300		220,411
Octagon Investment Partners 31 LLC, Series 2017-1A, Class E, (LIBOR USD 3 Month + 6.30%), 8.12%, 07/20/30(a)(b)	USD		1,000		644,552
Octagon Investment Partners 33 Ltd., Series 2017-1A, Class C, (LIBOR USD 3 Month + 2.75%), 4.57%, 01/20/31(a)(b)			1,750		1,235,952
Octagon Investment Partners 39 Ltd., Series 2018-3A, Class E, (LIBOR USD 3 Month + 5.75%), 7.57%, 10/20/30(a)(b)			300		172,628
OHA Credit Partners XI Ltd.(a)(b):
Series 2015-11A, Class DR, (LIBOR USD 3 Month + 2.95%), 4.77%, 01/20/32			534		366,488
Series 2015-11A, Class ER, (LIBOR USD 3 Month + 5.75%), 7.57%, 01/20/32			2,250		1,302,710
OHA Credit Partners XII Ltd., Series 2015-12A, Class DR, (LIBOR USD 3 Month + 2.90%), 4.71%, 07/23/30(a)(b)			1,250		873,578
OZLM Funding IV Ltd., Series 2013-4A, Class BR, (LIBOR USD 3 Month + 2.20%), 4.00%, 10/22/30(a)(b)			3,000		2,453,201

46 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
OZLM Funding Ltd., Series 2012-1A, Class CR2 , (LIBOR USD 3 Month + 3.60%), 5.40%, 07/22/29(a)(b)	USD		1,000	$	776,359
OZLM XIX Ltd., Series 2017-19A, Class C, (LIBOR USD 3 Month + 3.10%), 4.93%, 11/22/30(a)(b)			1,250		898,102
OZLME BV, Series 1X, Class ER, (EURIBOR 3 Month + 5.90%), 5.90%, 01/18/30(a)	EUR		990		732,977
OZLME II DAC, Series 2X, Class E, (EURIBOR 3 Month + 4.90%), 4.90%, 10/15/30(a)			807		544,556
OZLME III DAC, Series 3X, Class E, (EURIBOR 3 Month + 4.80%), 4.80%, 08/24/30(a)			1,000		676,966
Palmer Square CLO Ltd., Series 2018-2A, Class D, (LIBOR USD 3 Month + 5.60%), 7.44%, 07/16/31(a)(b)	USD		1,000		564,641
Rockford Tower Europe CLO DAC, Series 2018-1X, Class E, (EURIBOR 3 Month + 5.36%), 5.36%, 12/20/31(a)	EUR		300		195,547
Seneca Park CLO Ltd., Series 2014-1A, Class SUB, 0.00%, 07/17/26(b)(c)	USD		2,500		35,750
Treman Park CLO Ltd., Series 2015-1A, Class DRR, (LIBOR USD 3 Month + 2.65%), 4.47%, 10/20/28(a)(b)			1,800		1,359,620
Total Asset-Backed Securities — 0.3% (Cost: $73,374,173)					42,826,208
		Shares
Common Stocks — 1.0%
Aerospace & Defense — 0.0%
Bombardier, Inc., Class B(e)			6,845,585		2,213,274
Auto Components — 0.2%
UCI International, Inc.(e)(f)			1,260,653		20,170,448
Chemicals — 0.3%
Element Solutions, Inc.(e)			5,312,782		44,414,858
Commercial Services & Supplies — 0.0%
FreedomPay, Inc.(e)(f)			314,534		3
Consumer Finance — 0.0%
Arrow Global Group plc			153,279		200,751
Diversified Financial Services — 0.0%(e)
Adelphia Recovery Trust			1,339,784		4,496
Adelphia Recovery Trust(f)			130,590		1
				4,497
Diversified Telecommunication Services — 0.0%
Telecom Italia SpA			1,512,681		591,006
Energy Equipment & Services — 0.0%
McDermott International, Inc.(e)			379,465		22,009
Equity Real Estate Investment Trusts (REITs) — 0.3%
Gaming and Leisure Properties, Inc.			760,874		21,083,818
VICI Properties, Inc.			1,782,901		29,667,473
					50,751,291

Security	Shares		Value
Life Sciences Tools & Services — 0.0%
PPD, Inc.(e)		66,112	$	1,177,455
Media — 0.0%
Clear Channel Outdoor Holdings, Inc.(e)(g)		4,744,023		3,036,175
Metals & Mining — 0.1%
Constellium SE, Class A(e)		2,771,371		14,438,843
Oil, Gas & Consumable Fuels — 0.0%(e)(f)
KCAD Holdings I Ltd.		4,067,849,248		40,678
Osum Oil Sands Corp.(h)		1,600,000		1,455,269
			1,495,947
Pharmaceuticals — 0.1%
Bausch Health Cos., Inc.(e)(g)		1,225,176		18,990,228
Semiconductors & Semiconductor Equipment — 0.0%
SunPower Corp.(e)		1,369		6,941
Total Common Stocks — 1.0% (Cost: $278,716,410)				157,513,726
	Par (000)
Corporate Bonds — 78.8%
Aerospace & Defense — 3.8%
Arconic, Inc.:
5.40%, 04/15/21		5,357		5,310,662
5.87%, 02/23/22		7,850		7,729,895
5.13%, 10/01/24		35,415		34,972,312
Bombardier, Inc.(b):
8.75%, 12/01/21		35,626		29,614,112
5.75%, 03/15/22		5,590		4,234,425
6.13%, 01/15/23		15,790		11,131,950
7.50%, 12/01/24		8,238		5,560,650
7.50%, 03/15/25		10,574		7,555,123
7.88%, 04/15/27		61,100		40,775,085
BWX Technologies, Inc., 5.38%, 07/15/26(b)		11,232		10,782,720
F-Brasile SpA, Series XR, 7.38%, 08/15/26(b)		19,961		19,861,195
General Dynamics Corp., 4.25%, 04/01/50		4,235		5,332,676
Huntington Ingalls Industries, Inc.(b):
3.84%, 05/01/25		10,655		10,968,933
4.20%, 05/01/30		17,575		18,216,750
Kratos Defense & Security Solutions, Inc., 6.50%, 11/30/25(b)		15,430		14,118,450
Moog, Inc., 4.25%, 12/15/27(b)		10,711		9,666,678
Northrop Grumman Corp., 5.25%, 05/01/50		4,655		6,294,898
Signature Aviation US Holdings, Inc.(b):
5.38%, 05/01/26		8,861		8,573,017
4.00%, 03/01/28		14,305		12,914,554
SSL Robotics LLC, 9.75%, 12/31/23(b)		6,227		6,413,810
TransDigm UK Holdings plc, 6.88%, 05/15/26		25,533		23,745,690
TransDigm, Inc., 6.25%, 03/15/26(b)(i)		292,039		290,943,854
			584,717,439
Auto Components — 1.5%
Allison Transmission, Inc.(b):
5.00%, 10/01/24		1,734		1,681,980
5.88%, 06/01/29		18,322		17,222,680
Dealer Tire LLC, 8.00%, 02/01/28(b)		14,221		11,376,800
Icahn Enterprises LP:
6.25%, 02/01/22		618		619,545
6.75%, 02/01/24		1,752		1,690,680
4.75%, 09/15/24		6,704		6,165,736

CONSOLIDATED SCHEDULESOF INVESTMENTS 47

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Auto Components (continued)
6.38%, 12/15/25	USD		13,890	$	13,126,050
6.25%, 05/15/26			17,644		16,673,580
5.25%, 05/15/27			25,088		23,175,040
IHO Verwaltungs GmbH(j):
3.88%, (3.88% Cash or 4.63% PIK), 05/15/27(k)	EUR		2,911		2,440,012
6.00%, (6.00% Cash or 6.75% PIK), 05/15/27(b)	USD		400		280,000
Panther BF Aggregator 2 LP:
4.38%, 05/15/26	EUR		4,068		3,723,876
6.25%, 05/15/26(b)	USD		72,048		68,085,360
8.50%, 05/15/27(b)			77,491		67,603,148
					233,864,487
Automobiles — 0.1%
Tesla, Inc., 5.30%, 08/15/25(b)			10,711		10,041,563
Banks — 1.0%
AIB Group plc, (EUR Swap Annual 5 Year + 5.70%), 5.32%(a)(l)	EUR		1,750		1,506,153
Allied Irish Banks plc, (EUR Swap Annual 5 Year + 7.34%), 7.38%(a)(l)			1,444		1,545,527
Banco Bilbao Vizcaya Argentaria SA(a)(l):
(EUR Swap Annual 5 Year + 9.18%), 8.87%			1,400		1,501,469
(EUR Swap Annual 5 Year + 5.66%), 5.87%			400		372,780
Banco BPM SpA:
1.75%, 04/24/23			1,653		1,696,385
2.50%, 06/21/24			1,800		1,852,254
Banco de Sabadell SA(a):
(EUR Swap Annual 5 Year + 6.41%), 6.50%(l)			4,200		3,363,889
(EUR Swap Annual 5 Year + 2.20%), 2.00%, 01/17/30			900		723,057
Banco Espirito Santo SA(e)(m):
4.75%, 01/15/18			12,300		2,170,507
2.63%, 05/08/18			10,400		1,835,226
4.00%, 01/21/19			12,000		2,117,568
Banco Santander SA(a)(l):
(EUR Swap Annual 5 Year + 6.80%), 6.75%			1,900		1,880,461
(EUR Swap Annual 5 Year + 4.53%), 4.37%			2,200		1,808,337
Bankia SA(a)(l):
(EUR Swap Annual 5 Year + 5.82%), 6.00%			1,400		1,178,133
(EUR Swap Annual 5 Year + 6.22%), 6.37%			3,000		2,580,244
Barclays plc:
4.38%, 09/11/24	USD		28,717		28,616,337
5.20%, 05/12/26			7,800		8,013,720
BNP Paribas SA, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.94%), 4.50%(a)(b)(l)			12,075		9,297,750
CaixaBank SA(a)(l):
(EUR Swap Annual 5 Year + 6.50%), 6.75%	EUR		3,000		2,688,319
(EUR Swap Annual 5 Year + 4.50%), 5.25%			2,400		1,965,368
CIT Group, Inc.:
5.00%, 08/01/23	USD		4,878		4,693,172
4.75%, 02/16/24			2		1,955
6.00%, 04/01/36			23,131		21,511,830
Cooperatieve Rabobank UA, (EUR Swap Annual 5 Year + 4.10%), 4.62%(a)(l)	EUR		400		384,912
Credit Agricole SA, (EUR Swap Annual 5 Year + 5.12%), 6.50%(a)(l)			3,237		3,388,898
Erste Group Bank AG, (EUR Swap Annual 5 Year + 6.20%), 6.50%(a)(l)			800		828,278
HSBC Holdings plc(a)(l):
(EUR Swap Annual 5 Year + 4.38%), 5.25%			2,000		1,946,619
(USD Swap Rate 5 Year + 3.75%), 6.00% .	USD		24,053		22,790,217
ING Groep NV, (USD Swap Rate 5 Year + 4.20%), 6.75%(a)(l)			2,764		2,370,130

Security		Par (000)		Value
Banks (continued)
Intesa Sanpaolo SpA, (EUR Swap Annual 5 Year + 7.19%), 7.75%(a)(l)	EUR		2,483	$	2,518,369
National Westminster Bank plc(a)(l):
Series C, (LIBOR USD 3 Month + 0.25%), 1.86%	USD		1,240		948,600
Series A, (LIMEAN USD 6 Month + 0.25%), 2.06%			600		459,000
Series B, (LIBOR USD 6 Month + 0.25%), 1.87%			800		612,000
Royal Bank of Scotland Group plc, (USD Swap Semi 5 Year + 7.60%), 8.62%(a)(l)			6,571		6,406,725
Societe Generale SA, (USD Swap Semi 5 Year + 6.24%), 7.38%(a)(l)			600		551,790
UniCredit SpA(a)(l):
(EUR Swap Annual 5 Year + 6.10%), 6.75%	EUR		1,422		1,349,643
(EUR Swap Annual 5 Year + 9.30%), 9.25%			2,294		2,372,901
(EUR Swap Annual 5 Year + 6.39%), 6.62%			1,200		1,030,586
(EURIBOR Swap Rate 5 Year + 7.33%), 7.50%			4,275		4,272,913
Unione di Banche Italiane SpA, (EUR Swap Annual 5 Year + 5.75%), 5.87%, 03/04/29(a)			600		625,058
					155,777,080
Beverages — 0.0%
Sunshine Mid BV, 6.50%, 05/15/26			1,000		1,031,212
Building Products — 0.5%
Advanced Drainage Systems, Inc., 5.00%, 09/30/27(b)	USD		10,364		9,223,960
Builders FirstSource, Inc., 5.00%, 03/01/30(b)			9,254		8,328,600
CPG Merger Sub LLC, 8.00%, 10/01/21(b)			19,702		19,118,821
James Hardie International Finance DAC, 4.75%, 01/15/25(b)			2,080		1,960,421
JELD-WEN, Inc.(b):
4.63%, 12/15/25			7,080		6,230,400
4.88%, 12/15/27			96		84,720
Masonite International Corp.(b):
5.75%, 09/15/26			1,286		1,260,280
5.38%, 02/01/28			4,831		4,747,906
Standard Industries, Inc.:
5.50%, 02/15/23(b)			678		654,270
5.38%, 11/15/24(b)			14,455		13,949,075
6.00%, 10/15/25(b)			16,232		15,952,810
2.25%, 11/21/26	EUR		2,959		2,644,593
					84,155,856
Capital Markets — 1.4%
AG Issuer LLC, 6.25%, 03/01/28(b)	USD		1,261		1,059,240
Altice France Holding SA, 10.50%, 05/15/27(b)			82,616		87,159,880
Credit Suisse Group AG(a)(l):
(USD Swap Semi 5 Year + 4.60%), 7.50%(b)			8,017		7,388,467
(USD Swap Semi 5 Year + 4.60%), 7.50%			969		932,663
(USD Swap Semi 5 Year + 3.46%), 6.25%(b)			3,000		2,763,750
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.82%), 6.37%(b)			23,920		20,994,584
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.29%), 5.10%(b)			7,205		5,565,862
Goldman Sachs Group, Inc. (The), Series R, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.22%), 4.95%(a)(l)			39,265		34,945,850
Lehman Brothers Holdings Capital Trust Escrow Bonds(e)(m):
5.38%, 10/17/12	EUR		4,550		58,211
4.75%, 01/16/14			14,545		186,084

48 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Capital Markets (continued)
(EURIBOR 3 Month + 0.30%), 0.00%, 02/05/14(a)	EUR		22,800	$	291,695
LPL Holdings, Inc., 5.75%, 09/15/25(b)	USD		3,669		3,522,240
MSCI, Inc.(b):
4.75%, 08/01/26			1,689		1,663,665
4.00%, 11/15/29			1,049		1,042,056
3.63%, 09/01/30			3,974		3,770,332
Owl Rock Capital Corp.:
5.25%, 04/15/24			4,662		4,521,941
4.00%, 03/30/25			3,540		2,729,579
3.75%, 07/22/25			26,546		22,020,263
Pershing Square Holdings Ltd., 5.50%, 07/15/22(b)			12,000		11,520,000
State Street Corp., (SOFR + 2.65%), 3.15%, 03/30/31(a)(b)			990		1,012,725
UBS Group AG, (EUR Swap Annual 5 Year + 5.29%), 5.75%(a)(l)	EUR		1,238		1,324,428
					214,473,515
Chemicals — 2.1%
Ashland Services BV, 2.00%, 01/30/28			2,540		2,430,185
Atotech Alpha 2 BV, 8.75%, (8.75% Cash or 9.50% PIK), 06/01/23(b)(j)	USD		24,627		22,163,876
Atotech Alpha 3 BV, 6.25%, 02/01/25(b)			73,938		68,115,383
Axalta Coating Systems LLC, 4.88%, 08/15/24(b)			17,123		16,438,080
Blue Cube Spinco LLC:
9.75%, 10/15/23			18,480		19,196,100
10.00%, 10/15/25			21,614		22,804,931
Chemours Co. (The):
6.63%, 05/15/23			14,883		12,650,550
5.38%, 05/15/27			3,446		2,635,673
Ecolab, Inc., 4.80%, 03/24/30			6,505		7,306,977
Element Solutions, Inc., 5.88%, 12/01/25(b)			64,481		63,191,380
Gates Global LLC, 6.25%, 01/15/26(b)			18,264		16,163,640
GCP Applied Technologies, Inc., 5.50%, 04/15/26(b)			9,304		8,652,720
Monitchem HoldCo 2 SA, 9.50%, 09/15/26	EUR		1,000		931,399
Monitchem HoldCo 3 SA, 5.25%, 03/15/25			1,993		1,824,406
NOVA Chemicals Corp., 4.88%, 06/01/24(b)	USD		1,606		1,409,265
OCI NV:
3.13%, 11/01/24	EUR		1,300		1,261,718
5.25%, 11/01/24(b)	USD		4,834		4,157,240
Olin Corp., 5.50%, 08/15/22			255		234,600
PQ Corp.(b):
6.75%, 11/15/22			4,589		4,612,138
5.75%, 12/15/25			26,765		24,088,500
Valvoline, Inc., 4.25%, 02/15/30(b)			13,068		12,249,943
W.R. Grace & Co.(b):
5.13%, 10/01/21			1,330		1,343,300
5.63%, 10/01/24			6,250		6,154,375
					320,016,379
Commercial Services & Supplies — 2.8%
AA Bond Co. Ltd., 4.25%, 07/31/20	GBP		159		193,606
ADT Security Corp. (The):
6.25%, 10/15/21	USD		944		922,760
3.50%, 07/15/22			2,307		2,249,325
4.13%, 06/15/23			198		193,543
4.88%, 07/15/32(b)			24,196		20,559,341
Advanced Disposal Services, Inc., 5.63%, 11/15/24(b)			7,587		7,681,838
Allied Universal Holdco LLC(b):
6.63%, 07/15/26			96,855		95,160,037
9.75%, 07/15/27			33,394		31,470,506

Security		Par (000)		Value
Commercial Services & Supplies (continued)
APX Group, Inc.:
7.88%, 12/01/22	USD		2,587	$	2,432,657
8.50%, 11/01/24(b)			7,550		6,889,450
6.75%, 02/15/27(b)			13,991		11,612,530
Aramark Services, Inc.:
5.00%, 04/01/25(b)			5,900		5,584,940
4.75%, 06/01/26			2,051		1,932,657
5.00%, 02/01/28(b)			9,209		8,570,080
Clean Harbors, Inc.(b):
4.88%, 07/15/27			15,297		14,974,233
5.13%, 07/15/29			10,914		10,150,020
Garda World Security Corp.(b):
4.63%, 02/15/27			14,687		13,144,865
9.50%, 11/01/27			11,169		9,983,969
GFL Environmental, Inc.(b):
7.00%, 06/01/26			31,374		30,367,365
5.13%, 12/15/26			26,849		26,177,775
8.50%, 05/01/27			16,900		16,979,430
IAA, Inc., 5.50%, 06/15/27(b)			13,507		13,068,023
Intrum AB:
3.13%, 07/15/24	EUR		1,000		798,500
3.50%, 07/15/26			1,754		1,383,158
KAR Auction Services, Inc., 5.13%, 06/01/25(b)	USD		3,920		3,743,600
Mobile Mini, Inc., 5.88%, 07/01/24			34,030		32,583,725
Nielsen Co. Luxembourg SARL (The), 5.00%, 02/01/25(b)			6,435		5,968,463
Prime Security Services Borrower LLC(b):
5.25%, 04/15/24			1,738		1,716,779
5.75%, 04/15/26			6,437		6,308,260
6.25%, 01/15/28			23,074		19,901,325
Ritchie Bros Auctioneers, Inc., 5.38%, 01/15/25(b)			4,373		4,362,024
SPIE SA, 2.63%, 06/18/26	EUR		1,200		1,179,882
Techem Verwaltungsgesellschaft 674 mbH, 6.00%, 07/30/26			2,400		2,435,203
Vericast Corp., 8.38%, 08/15/22(b)	USD		7,258		5,597,733
Verisure Midholding AB, 5.75%, 12/01/23	EUR		1,867		1,797,038
Waste Pro USA, Inc., 5.50%, 02/15/26(b)	USD		20,617		19,128,453
					437,203,093
Communications Equipment — 0.5%
CommScope, Inc.(b):
5.50%, 03/01/24			15,234		15,416,808
6.00%, 03/01/26			5,636		5,627,546
Nokia OYJ, 6.63%, 05/15/39			20,933		21,205,129
ViaSat, Inc., 5.63%, 04/15/27(b)			32,889		32,477,888
					74,727,371
Construction & Engineering — 0.3%
Aldesa Financial Services SA, 7.25%, 04/01/21	EUR		1,800		1,728,889
Brand Industrial Services, Inc., 8.50%, 07/15/25(b)	USD		25,551		20,062,645
Ferrovial Netherlands BV, (EUR Swap Annual 5 Year + 2.13%), 2.12%(a)(l)	EUR		3,700		3,319,878
Heathrow Finance plc:
4.75%, 03/01/24	GBP		400		469,588
4.13%, 09/01/29			2,142		2,276,125
New Enterprise Stone & Lime Co., Inc.(b):
10.13%, 04/01/22	USD		11,036		11,008,410
6.25%, 03/15/26			3,485		3,206,200
					42,071,735
Construction Materials — 0.0%
CEMEX Finance LLC, 4.63%, 06/15/24	EUR		400		420,205
Cemex SAB de CV:
3.13%, 03/19/26			1,600		1,562,809

CONSOLIDATED SCHEDULESOF INVESTMENTS 49

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Construction Materials (continued)
Holcim Finance Luxembourg SA, (EURIBOR Swap Rate 5 Year + 3.07%), 3.00%(a)(l)	EUR		1,325	$	1,259,224
					3,242,238
Consumer Finance — 2.0%
Ally Financial, Inc.:
5.75%, 11/20/25	USD		1,161		1,135,690
8.00%, 11/01/31			55,962		64,843,170
Ford Motor Credit Co. LLC:
3.20%, 01/15/21			1,300		1,256,125
3.34%, 03/18/21			22,517		21,611,817
3.47%, 04/05/21			3,150		3,023,055
5.88%, 08/02/21			11,096		10,874,080
3.81%, 10/12/21			3,433		3,293,552
5.60%, 01/07/22			3,471		3,358,192
3.22%, 01/09/22			5,619		5,239,717
2.98%, 08/03/22			15,388		14,310,840
3.35%, 11/01/22			6,788		6,329,810
3.09%, 01/09/23			31,374		28,864,080
4.14%, 02/15/23			10,485		9,717,498
4.38%, 08/06/23			3,687		3,351,852
3.81%, 01/09/24			3,424		3,098,720
3.66%, 09/08/24			8,620		7,758,000
4.06%, 11/01/24			4,031		3,658,132
4.13%, 08/04/25			779		690,973
4.39%, 01/08/26			12,489		10,927,875
Global Aircraft Leasing Co. Ltd., 6.50%, (6.50% Cash or 7.25% PIK), 09/15/24(b)(j)			24,126		15,463,077
Navient Corp.:
5.00%, 10/26/20			4,891		4,817,635
7.25%, 09/25/23			3,544		3,437,893
6.13%, 03/25/24			6,829		6,316,825
5.88%, 10/25/24			4,013		3,691,960
6.75%, 06/25/25			1,718		1,580,560
6.75%, 06/15/26			3,042		2,798,640
5.00%, 03/15/27			2,225		1,912,832
Springleaf Finance Corp.:
6.88%, 03/15/25			12,554		12,643,385
7.13%, 03/15/26			15,125		14,973,750
6.63%, 01/15/28			13,914		13,148,730
5.38%, 11/15/29			6,328		5,790,120
Toyota Motor Credit Corp., 3.38%, 04/01/30			16,060		16,216,910
					306,135,495
Containers & Packaging — 1.9%
ARD Finance SA, 6.50%, (6.50% Cash or 7.25% PIK), 06/30/27(b)(j)			40,794		35,037,728
Ardagh Packaging Finance plc:
2.75%, 03/15/24	EUR		2,000		2,106,032
2.13%, 08/15/26			1,000		983,235
4.13%, 08/15/26(b)	USD		5,157		5,131,215
4.75%, 07/15/27(b)	GBP		4,000		4,533,665
4.75%, 07/15/27			1,215		1,377,101
5.25%, 08/15/27(b)	USD		6,974		7,148,350
Berry Global, Inc.:
1.00%, 01/15/25	EUR		1,401		1,406,098
4.88%, 07/15/26(b)	USD		1,037		1,047,370
1.50%, 01/15/27	EUR		600		594,574
Crown Americas LLC:
4.75%, 02/01/26	USD		11,113		11,387,491
4.25%, 09/30/26			14,337		14,121,945
Crown Cork & Seal Co., Inc., 7.38%, 12/15/26			1,896		1,943,400
Crown European Holdings SA:
0.75%, 02/15/23	EUR		300		311,845
3.38%, 05/15/25			1,932		2,104,986

Security		Par (000)		Value
Containers & Packaging (continued)
Graphic Packaging International LLC:
4.88%, 11/15/22	USD		223	$	214,080
4.75%, 07/15/27(b)			2,097		2,050,866
3.50%, 03/15/28(b)			4,557		4,099,933
Intertape Polymer Group, Inc., 7.00%, 10/15/26(b)			6,245		5,963,975
LABL Escrow Issuer LLC, 6.75%, 07/15/26(b)			16,537		15,214,040
Mauser Packaging Solutions Holding Co.:
4.75%, 04/15/24	EUR		1,216		1,141,030
5.50%, 04/15/24(b)	USD		39,501		36,340,920
OI European Group BV, 2.88%, 02/15/25	EUR		1,184		1,209,202
Reynolds Group Issuer, Inc.(b):
(LIBOR USD 3 Month + 3.50%), 5.33%, 07/15/21(a)	USD		1,376		1,341,600
5.13%, 07/15/23			2,223		2,200,770
7.00%, 07/15/24			11,697		11,887,076
Sealed Air Corp.(b):
5.25%, 04/01/23			534		544,680
5.13%, 12/01/24			2,230		2,241,150
6.88%, 07/15/33			158		158,312
Silgan Holdings, Inc.:
3.25%, 03/15/25	EUR		1,300		1,397,926
4.13%, 02/01/28(b)	USD		7,299		6,733,327
2.25%, 06/01/28	EUR		2,254		2,202,540
Trivium Packaging Finance BV(d):
3.75%, 08/15/26			2,105		2,111,499
5.50%, 08/15/26(b)	USD		40,206		40,004,970
8.50%, 08/15/27(b)			67,229		67,565,145
					293,858,076
Distributors — 0.6%(b)
American Builders & Contractors Supply Co., Inc.:
5.88%, 05/15/26			11,429		10,886,123
4.00%, 01/15/28			3,259		2,965,690
Core & Main Holdings LP, 8.63%, (8.63% Cash or 9.38% PIK), 09/15/24(j)			28,682		26,244,030
Core & Main LP, 6.13%, 08/15/25			35,631		33,136,830
Wolverine Escrow LLC:
8.50%, 11/15/24			13,730		10,949,538
9.00%, 11/15/26			16,843		13,684,937
					97,867,148
Diversified Consumer Services — 0.4%
frontdoor, Inc., 6.75%, 08/15/26(b)			9,955		9,531,913
Graham Holdings Co., 5.75%, 06/01/26(b)			7,807		7,650,860
Laureate Education, Inc., 8.25%, 05/01/25(b)	.		5,260		5,233,700
Service Corp. International:
5.38%, 05/15/24			716		728,530
5.13%, 06/01/29			4,871		4,968,420
ServiceMaster Co. LLC (The), 5.13%, 11/15/24(b)			9,645		9,524,437
Sotheby’s, 7.38%, 10/15/27(b)			29,117		23,184,411
					60,822,271
Diversified Financial Services — 1.6%
Arrow Global Finance plc, 5.13%, 09/15/24	GBP		1,700		1,815,950
Cabot Financial Luxembourg II SA, (EURIBOR 3 Month + 6.38%), 6.37%, 06/14/24(a)	EUR		115		116,750
Cabot Financial Luxembourg SA, 7.50%, 10/01/23	GBP		3,100		3,584,209
Fairstone Financial, Inc., 7.88%, 07/15/24(b)	USD		7,510		7,059,400
Garfunkelux Holdco 3 SA:
7.50%, 08/01/22	EUR		4,930		3,713,369
8.50%, 11/01/22	GBP		600		514,230
HBOS Capital Funding LP, 6.85%(l)	USD		6,050		5,696,075

50 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Financial Services (continued)
LHC3 plc, 4.13%, (4.13% Cash or 9.00% PIK), 08/15/24(j)	EUR		2,876	$	2,636,870
MPH Acquisition Holdings LLC, 7.13%, 06/01/24(b)	USD		46,538		40,490,852
Refinitiv US Holdings, Inc.:
4.50%, 05/15/26(b)	EUR		20,132		21,981,547
4.50%, 05/15/26			3,809		4,158,937
6.25%, 05/15/26(b)	USD		13,114		13,540,205
8.25%, 11/15/26(b)			41,234		43,501,870
Verscend Escrow Corp., 9.75%, 08/15/26(b)			102,193		102,000,877
					250,811,141
Diversified Telecommunication Services — 6.6%
Altice France SA:
2.50%, 01/15/25	EUR		1,577		1,617,524
7.38%, 05/01/26(b)	USD		84,614		83,992,087
5.88%, 02/01/27	EUR		4,300		4,801,751
8.13%, 02/01/27(b)	USD		51,469		53,656,433
5.50%, 01/15/28(b)			25,331		23,717,415
CCO Holdings LLC(b):
4.00%, 03/01/23			13,302		13,252,118
5.75%, 02/15/26			5,794		5,867,294
5.50%, 05/01/26			5,000		5,075,000
5.13%, 05/01/27			33,961		34,049,299
5.00%, 02/01/28			22,257		22,312,642
5.38%, 06/01/29			16,724		17,185,582
4.75%, 03/01/30			18,094		18,003,530
4.50%, 08/15/30			51,210		50,185,800
4.50%, 05/01/32			67,470		65,796,744
CenturyLink, Inc.:
Series W, 6.75%, 12/01/23			6,388		6,789,166
Series Y, 7.50%, 04/01/24			12,487		13,673,265
5.13%, 12/15/26(b)			48,906		48,906,000
4.00%, 02/15/27(b)			22,535		21,858,950
Series P, 7.60%, 09/15/39			18,728		18,166,160
Series U, 7.65%, 03/15/42			24,388		23,656,360
Cincinnati Bell, Inc., 7.00%, 07/15/24(b)			25,476		25,635,225
Front Range BidCo, Inc.(b):
4.00%, 03/01/27			8,414		8,045,888
6.13%, 03/01/28			45,447		43,174,650
Frontier Communications Corp., 8.00%, 04/01/27(b)			75,364		74,330,006
Intelsat Jackson Holdings SA, 5.50%, 08/01/23			45,939		30,090,045
Koninklijke KPN NV, (EUR Swap Annual 5 Year + 2.34%), 2.03%(a)(l)	EUR		2,400		2,458,894
Level 3 Financing, Inc.:
5.63%, 02/01/23	USD		4,578		4,555,110
5.38%, 05/01/25			3,452		3,434,740
5.25%, 03/15/26			2,203		2,201,623
4.63%, 09/15/27(b)			5,344		5,311,402
Oi SA, 10.00%, (10.00% Cash or 4.00% PIK), 07/27/25(j)			3,740		2,552,550
Qualitytech LP, 4.75%, 11/15/25(b)			10,491		10,123,815
Qwest Corp., 6.75%, 12/01/21			5,519		5,719,340
Sable International Finance Ltd., 5.75%, 09/07/27(b)			5,600		5,040,000
Sprint Capital Corp.:
6.88%, 11/15/28			40,465		46,219,123
8.75%, 03/15/32			38,501		50,917,572
Telecom Italia Capital SA:
6.38%, 11/15/33			9,783		9,929,745
6.00%, 09/30/34			17,470		17,295,300
7.20%, 07/18/36			4,879		5,049,765
7.72%, 06/04/38			9,443		9,983,234
Telecom Italia Finance SA, 7.75%, 01/24/33	EUR		1,962		2,818,752

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
Telecom Italia SpA:
4.00%, 04/11/24	EUR		4,164	$	4,568,834
5.30%, 05/30/24(b)	USD		27,641		27,780,863
2.75%, 04/15/25	EUR		3,513		3,632,332
3.00%, 09/30/25			1,000		1,044,874
2.88%, 01/28/26			500		518,363
3.63%, 05/25/26			1,900		2,031,434
Telesat Canada, 4.88%, 06/01/27(b)	USD		15,465		14,765,982
Virgin Media Finance plc(b):
6.00%, 10/15/24			3,000		2,895,000
5.75%, 01/15/25			42,867		41,580,990
Virgin Media Secured Finance plc:
4.88%, 01/15/27	GBP		3,815		4,371,369
5.00%, 04/15/27			1,000		1,179,995
6.25%, 03/28/29			90		110,857
5.50%, 05/15/29(b)	USD		15,744		15,687,321
					1,017,618,113
Electric Utilities — 0.6%
ContourGlobal Power Holdings SA:
3.38%, 08/01/23	EUR		1,714		1,649,121
4.13%, 08/01/25			1,806		1,745,734
Edison International, 4.95%, 04/15/25	USD		4,065		4,055,610
Naturgy Finance BV(a)(l):
(EUR Swap Annual 8 Year + 3.35%), 4.13%	EUR		1,800		1,950,808
(EUR Swap Annual 9 Year + 3.08%), 3.38%			3,200		3,389,097
NextEra Energy Operating Partners LP(b):
4.25%, 07/15/24	USD		10,804		10,533,900
4.25%, 09/15/24			5,361		5,226,975
4.50%, 09/15/27			101		98,475
NRG Energy, Inc.:
3.75%, 06/15/24(b)			7,805		7,656,795
6.63%, 01/15/27			4,095		4,258,800
5.75%, 01/15/28			35		35,700
4.45%, 06/15/29(b)			24,117		24,399,947
5.25%, 06/15/29(b)			11,130		11,463,900
Vistra Operations Co. LLC(b):
3.55%, 07/15/24			2,619		2,461,434
5.00%, 07/31/27			1,576		1,599,640
4.30%, 07/15/29			14,842		13,159,071
					93,685,007
Electrical Equipment — 0.1%
Sensata Technologies BV(b):
5.63%, 11/01/24			3,212		3,131,700
5.00%, 10/01/25			11,631		11,020,373
					14,152,073
Electronic Equipment, Instruments & Components — 0.2%
Anixter, Inc., 6.00%, 12/01/25			914		894,577
Belden, Inc.:
4.13%, 10/15/26	EUR		3,120		3,213,554
3.88%, 03/15/28			900		898,312
CDW LLC, 5.50%, 12/01/24	USD		21,694		22,611,439
Itron, Inc., 5.00%, 01/15/26(b)			1,171		1,112,450
MTS Systems Corp., 5.75%, 08/15/27(b)			880		816,200
Sensata Technologies, Inc., 4.38%, 02/15/30(b)			5,571		5,013,900
					34,560,432
Energy Equipment & Services — 0.4%
Apergy Corp., 6.38%, 05/01/26			11,427		8,798,790
Archrock Partners LP(b):
6.88%, 04/01/27			6,195		4,399,069
6.25%, 04/01/28			5,331		3,678,390
Nabors Industries Ltd.(b):
7.25%, 01/15/26			9,455		3,214,700
7.50%, 01/15/28			8,450		2,704,000

CONSOLIDATED SCHEDULESOF INVESTMENTS 51

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Energy Equipment & Services (continued)
Nabors Industries, Inc., 4.63%, 09/15/21	USD		777	$	489,510
Pacific Drilling SA, 8.38%, 10/01/23(b)			17,092		4,614,840
Tervita Corp., 7.63%, 12/01/21(b)			16,442		11,509,400
Transocean, Inc.:
6.50%, 11/15/20			1,241		986,595
8.37%, 12/15/21(d)			549		318,453
5.80%, 10/15/22(d)			300		177,000
8.00%, 02/01/27(b)			16,181		7,685,975
USA Compression Partners LP:
6.88%, 04/01/26			16,754		10,471,250
6.88%, 09/01/27			13,748		8,523,760
					67,571,732
Entertainment — 0.8%
Banijay Entertainment SASU, 3.50%, 03/01/25	EUR		1,392		1,380,602
Lions Gate Capital Holdings LLC(b):
6.38%, 02/01/24	USD		5,145		4,527,600
5.88%, 11/01/24			6,779		5,796,045
Live Nation Entertainment, Inc.(b):
4.88%, 11/01/24			1,849		1,683,256
4.75%, 10/15/27			2,391		2,127,990
Netflix, Inc.:
4.88%, 04/15/28			6,750		6,952,500
5.88%, 11/15/28			51,243		54,753,146
3.88%, 11/15/29	EUR		1,430		1,540,541
5.38%, 11/15/29(b)	USD		23,765		24,659,752
3.63%, 06/15/30	EUR		4,067		4,373,357
4.88%, 06/15/30(b)	USD		10,836		11,000,165
Pinewood Finance Co. Ltd., 3.25%, 09/30/25	GBP		1,879		2,170,532
					120,965,486
Equity Real Estate Investment Trusts (REITs) — 3.5%
Brookfield Property REIT, Inc., 5.75%, 05/15/26(b)	USD		5,138		4,168,870
Crown Castle International Corp.:
3.30%, 07/01/30			8,200		8,132,678
4.15%, 07/01/50			6,845		6,769,705
GLP Capital LP:
5.38%, 04/15/26			3,645		3,230,928
5.75%, 06/01/28			4,199		3,710,657
4.00%, 01/15/30			26,174		22,007,099
Iron Mountain UK plc, 3.88%, 11/15/25	GBP		2,332		2,607,267
Iron Mountain, Inc.:
3.00%, 01/15/25	EUR		823		797,248
4.88%, 09/15/27(b)	USD		5,469		5,304,930
5.25%, 03/15/28(b)			8,371		8,268,874
4.88%, 09/15/29(b)			8,984		8,439,390
MGM Growth Properties Operating Partnership LP:
5.63%, 05/01/24			38,340		36,806,400
4.50%, 09/01/26			24,910		20,675,300
5.75%, 02/01/27			4,476		3,894,120
4.50%, 01/15/28			17,735		15,074,750
MPT Operating Partnership LP:
5.50%, 05/01/24			7,145		6,948,512
5.25%, 08/01/26			4,582		4,495,240
5.00%, 10/15/27			46,562		45,165,140
4.63%, 08/01/29			21,634		20,119,620
Ryman Hospitality Properties, Inc., 4.75%, 10/15/27(b)			25,222		18,916,500
SBA Communications Corp.:
4.00%, 10/01/22			17,098		17,092,871
4.88%, 09/01/24			33,194		33,650,417
3.88%, 02/15/27(b)			40,021		40,121,053
Uniti Group LP(b):
6.00%, 04/15/23			7,934		7,219,940

Security		Par (000)		Value
Equity Real Estate Investment Trusts (REITs) (continued)
7.88%, 02/15/25	USD		24,950	$	22,938,531
VICI Properties LP(b):
3.50%, 02/15/25			18,185		16,957,512
4.25%, 12/01/26			53,432		49,023,860
3.75%, 02/15/27			22,580		21,281,650
4.63%, 12/01/29			24,400		22,262,072
4.13%, 08/15/30			63,186		59,157,893
					535,239,027
Food & Staples Retailing — 0.7%
Albertsons Cos., Inc.:
5.75%, 03/15/25			1,898		1,917,739
4.63%, 01/15/27(b)			22,997		22,882,015
5.88%, 02/15/28(b)			19,068		19,407,410
4.88%, 02/15/30(b)			11,009		10,981,478
Casino Guichard Perrachon SA(d):
3.58%, 02/07/25	EUR		500		440,818
4.05%, 08/05/26			900		784,162
Distribuidora Internacional de Alimentacion SA, 1.00%, 04/28/21			2,100		1,621,263
Iceland Bondco plc:
6.75%, 07/15/24	GBP		1,000		980,514
4.63%, 03/15/25			2,200		2,172,433
Picard Groupe SAS, (EURIBOR 3 Month + 3.00%), 3.00%, 11/30/23(a)	EUR		2,500		2,571,229
Quatrim SASU, 5.88%, 01/15/24			600		643,426
Sysco Corp.:
5.65%, 04/01/25	USD		7,335		7,636,176
5.95%, 04/01/30			9,383		9,850,649
6.60%, 04/01/40			11,350		12,237,547
6.60%, 04/01/50			11,350		11,900,439
					106,027,298
Food Products — 2.0%
Chobani LLC, 7.50%, 04/15/25(b)			25,483		23,189,530
Darling Ingredients, Inc., 5.25%, 04/15/27(b)			4,540		4,402,438
General Mills, Inc., 2.88%, 04/15/30			1,315		1,312,370
JBS Investments II GmbH, 7.00%, 01/15/26(b)			1,800		1,793,844
JBS USA LUX SA(b):
5.88%, 07/15/24			28,109		28,460,362
5.75%, 06/15/25			23,955		24,194,550
6.75%, 02/15/28			6,468		6,891,525
6.50%, 04/15/29			39,331		42,190,364
5.50%, 01/15/30			3,373		3,482,622
Kraft Heinz Foods Co.:
2.25%, 05/25/28	EUR		1,500		1,415,991
5.00%, 07/15/35	USD		6,073		6,037,827
6.88%, 01/26/39			13,291		15,202,566
4.63%, 10/01/39(b)			8,828		7,905,812
6.50%, 02/09/40			8,755		9,553,199
5.00%, 06/04/42			3,696		3,499,321
5.20%, 07/15/45			11,149		10,718,567
4.38%, 06/01/46			25,291		22,782,575
4.88%, 10/01/49(b)			48,221		43,845,637
Nomad Foods Bondco plc, 3.25%, 05/15/24	EUR		1,000		1,036,280
Post Holdings, Inc.(b):
5.00%, 08/15/26	USD		10,588		10,896,640
5.75%, 03/01/27			280		286,919
5.63%, 01/15/28			4,943		5,017,145
5.50%, 12/15/29			5,659		5,870,081
4.63%, 04/15/30			18,354		17,573,955
Premier Foods Finance plc, 6.25%, 10/15/23	GBP		800		906,634
Simmons Foods, Inc., 7.75%, 01/15/24(b)	USD		13,292		13,292,000
					311,758,754

52 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Gas Utilities — 0.1%
Superior Plus LP, 7.00%, 07/15/26(b)	USD		13,086	$	12,758,850
Health Care Equipment & Supplies — 0.7%
Baxter International, Inc., 3.95%, 04/01/30(b)	.		1,720		1,844,177
Hologic, Inc.(b):
4.38%, 10/15/25			8,587		8,503,620
4.63%, 02/01/28			15,045		15,082,613
Immucor, Inc., 11.13%, 02/15/22(b)			4,666		4,199,400
Ortho-Clinical Diagnostics, Inc.(b):
6.63%, 05/15/22			22,781		21,528,045
7.25%, 02/01/28			58,631		50,416,797
Teleflex, Inc.:
4.88%, 06/01/26			7,653		7,576,470
4.63%, 11/15/27			1,930		1,927,877
					111,078,999
Health Care Providers & Services — 5.0%
Acadia Healthcare Co., Inc., 5.13%, 07/01/22.			5,468		5,211,704
AHP Health Partners, Inc., 9.75%, 07/15/26(b)			10,075		8,718,420
Centene Corp.(b):
5.25%, 04/01/25			15,431		15,508,155
5.38%, 06/01/26			13,657		14,068,212
5.38%, 08/15/26			19,670		20,063,400
4.25%, 12/15/27			43,227		42,362,460
4.63%, 12/15/29			66,790		67,123,950
3.38%, 02/15/30			9,072		8,436,960
Community Health Systems, Inc.(b):
8.63%, 01/15/24			39,099		38,598,142
6.63%, 02/15/25			20,376		18,847,800
8.00%, 03/15/26			58,022		55,120,900
Encompass Health Corp., 5.75%, 11/01/24			273		274,283
HCA, Inc.:
5.38%, 02/01/25			22,487		22,992,957
5.88%, 02/15/26			3,301		3,474,302
5.38%, 09/01/26			24,034		24,755,020
5.63%, 09/01/28			54,534		57,080,738
5.88%, 02/01/29			16,805		17,771,288
3.50%, 09/01/30			64,621		58,624,918
LifePoint Health, Inc., 4.38%, 02/15/27(b)			3,392		3,195,264
MEDNAX, Inc.(b):
5.25%, 12/01/23			8,268		6,738,420
6.25%, 01/15/27			12,425		9,971,062
Molina Healthcare, Inc.:
5.38%, 11/15/22(d)			4,903		4,780,425
4.88%, 06/15/25(b)			6,455		6,293,625
Polaris Intermediate Corp., 8.50%, (8.50% Cash or 9.25% PIK), 12/01/22(b)(j)			23,850		18,483,586
Radiology Partners, Inc., 9.25%, 02/01/28(b)			7,908		6,846,345
Surgery Center Holdings, Inc.(b):
6.75%, 07/01/25			34,622		24,928,140
10.00%, 04/15/27			16,772		11,740,400
Tenet Healthcare Corp.:
8.13%, 04/01/22			48,460		46,158,150
4.63%, 07/15/24			7,561		7,220,755
4.63%, 09/01/24(b)			11,186		10,713,951
4.88%, 01/01/26(b)			59,643		56,809,957
6.25%, 02/01/27(b)			30,750		29,981,250
5.13%, 11/01/27(b)			38,987		37,135,118
Vizient, Inc., 6.25%, 05/15/27(b)			15,397		15,018,465
					775,048,522
Health Care Technology — 0.2%
IQVIA, Inc.:
3.25%, 03/15/25(b)	EUR		1,962		2,109,827
3.25%, 03/15/25			11,575		12,447,120
5.00%, 10/15/26(b)	USD		9,931		10,129,620

Security		Par (000)		Value
Health Care Technology (continued)
5.00%, 05/15/27(b)	USD		10,301	$	10,532,773
					35,219,340
Hotels, Restaurants & Leisure — 3.2%
1011778 BC ULC(b):
4.25%, 05/15/24			5,511		5,497,168
5.00%, 10/15/25			42,678		40,757,063
3.88%, 01/15/28			15,748		14,960,600
4.38%, 01/15/28			25,971		23,994,607
Aramark International Finance SARL, 3.13%, 04/01/25	EUR		1,140		1,052,214
Boyne USA, Inc., 7.25%, 05/01/25(b)	USD		8,910		8,509,050
Cedar Fair LP, 5.25%, 07/15/29(b)			10,559		8,922,355
Churchill Downs, Inc.(b):
5.50%, 04/01/27			24,555		23,147,262
4.75%, 01/15/28			24,790		21,567,300
Cirsa Finance International SARL:
7.88%, 12/20/23(b)			600		499,770
4.75%, 05/22/25	EUR		100		66,312
Codere Finance 2 Luxembourg SA, 7.63%, 11/01/21(b)	USD		1,300		445,250
CPUK Finance Ltd.:
4.25%, 08/28/22	GBP		1,511		1,506,094
4.88%, 08/28/25			350		344,286
Eldorado Resorts, Inc., 6.00%, 09/15/26	USD		4,530		4,088,325
Explorer II A/S, 3.38%, 02/24/25	EUR		1,102		711,055
Golden Nugget, Inc., 6.75%, 10/15/24(b)	USD		57,357		36,128,601
Greene King Finance plc, Series B2, (LIBOR
GBP 3 Month + 2.08%), 2.57%, 03/15/36(a)	GBP		100		109,481
Hilton Domestic Operating Co., Inc.:
4.25%, 09/01/24	USD		6,432		6,013,920
5.13%, 05/01/26			15,166		14,256,040
4.88%, 01/15/30			43,326		36,827,100
Hilton Worldwide Finance LLC:
4.63%, 04/01/25			966		898,380
4.88%, 04/01/27			4,937		4,690,150
IRB Holding Corp., 6.75%, 02/15/26(b)			3,678		2,897,951
KFC Holding Co.(b):
5.00%, 06/01/24			2,000		1,960,000
5.25%, 06/01/26			7,623		7,612,328
Las Vegas Sands Corp.:
2.90%, 06/25/25			2,276		2,063,355
3.50%, 08/18/26			2,312		2,114,735
3.90%, 08/08/29			1,486		1,280,703
LHMC Finco 2 SARL:
7.25%, (7.25% Cash or 8.00% PIK), 10/02/25(j)	EUR		2,420		1,014,227
Marriott Ownership Resorts, Inc., 6.50%, 09/15/26	USD		1,952		1,698,240
McDonald’s Corp.:
3.50%, 07/01/27			6,660		6,996,459
3.60%, 07/01/30			6,240		6,551,569
4.20%, 04/01/50			2,805		3,137,518
MGM Resorts International:
7.75%, 03/15/22			29,542		29,261,942
6.00%, 03/15/23			21,120		20,380,800
5.75%, 06/15/25			744		665,880
Motion Bondco DAC, 6.63%, 11/15/27(b)			3,667		2,566,900
Pinnacle Bidco plc, 6.38%, 02/15/25	GBP		545		453,553
Scientific Games International, Inc.:
5.00%, 10/15/25(b)	USD		17,355		15,098,850
3.38%, 02/15/26	EUR		8,200		6,967,328
8.25%, 03/15/26(b)	USD		41,717		26,703,469
7.00%, 05/15/28(b)			11,251		6,919,365
7.25%, 11/15/29(b)			4,781		2,988,125
Sisal Group SpA, 7.00%, 07/31/23	EUR		688		618,372

CONSOLIDATED SCHEDULESOF INVESTMENTS 53

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
Six Flags Entertainment Corp.(b):
4.88%, 07/31/24	USD		9,256	$	7,844,460
5.50%, 04/15/27			10,721		9,032,442
Station Casinos LLC, 4.50%, 02/15/28(b)			10,413		8,434,530
Viking Cruises Ltd., 6.25%, 05/15/25(b)			3,000		1,920,000
William Hill plc, 4.75%, 05/01/26	GBP		2,000		1,894,580
Wyndham Destinations, Inc.(d):
5.40%, 04/01/24	USD		288		243,360
5.75%, 04/01/27			3,170		2,646,950
Wyndham Hotels & Resorts, Inc., 5.38%, 04/15/26(b)			5,341		4,646,670
Wynn Las Vegas LLC, 5.25%, 05/15/27(b)			7,671		6,942,255
Wynn Resorts Finance LLC, 5.13%, 10/01/29(b)			18,620		16,944,200
Yum! Brands, Inc.:
7.75%, 04/01/25(b)			17,417		18,287,850
4.75%, 01/15/30(b)			13,488		12,678,720
5.35%, 11/01/43			718		610,300
					497,070,369
Household Durables — 1.1%
Ashton Woods USA LLC, 6.63%, 01/15/28(b)	.		3,575		2,824,250
Brookfield Residential Properties, Inc.(b):
6.25%, 09/15/27			6,121		5,309,356
4.88%, 02/15/30			17,393		13,213,462
Installed Building Products, Inc., 5.75%, 02/01/28(b)			6,390		6,086,475
K. Hovnanian Enterprises, Inc., 7.75%, 02/15/26(b)			17,192		17,578,820
Lennar Corp.:
8.38%, 01/15/21			7,612		7,726,180
6.25%, 12/15/21			3,054		3,046,365
4.88%, 12/15/23			3,645		3,572,100
5.25%, 06/01/26			4,134		4,206,345
4.75%, 11/29/27			13,523		13,489,193
Mattamy Group Corp.(b):
5.25%, 12/15/27			7,685		7,147,050
4.63%, 03/01/30			10,018		8,615,480
MDC Holdings, Inc., 6.00%, 01/15/43			5,518		5,217,269
Meritage Homes Corp., 5.13%, 06/06/27			2,751		2,585,940
PulteGroup, Inc.:
5.00%, 01/15/27			1,006		1,003,787
7.88%, 06/15/32			1,100		1,210,000
6.38%, 05/15/33			12,608		12,742,905
6.00%, 02/15/35			7,702		7,759,765
Shea Homes LP, 4.75%, 02/15/28(b)			6,251		5,336,791
Taylor Morrison Communities, Inc., 5.88%, 06/15/27(b)			9,532		8,853,036
Tempur Sealy International, Inc., 5.50%, 06/15/26			218		190,783
TRI Pointe Group, Inc.:
4.88%, 07/01/21			882		819,246
5.88%, 06/15/24			1,663		1,544,894
5.25%, 06/01/27			4,958		4,411,132
Williams Scotsman International, Inc.(b):
7.88%, 12/15/22			5,199		5,071,624
6.88%, 08/15/23			17,248		15,695,680
					165,257,928
Household Products — 0.2%
Energizer Holdings, Inc.(b):
6.38%, 07/15/26			4,126		4,167,260
7.75%, 01/15/27			6,649		6,873,071
Kimberly-Clark Corp., 3.10%, 03/26/30			2,485		2,688,322
Procter & Gamble Co. (The), 3.60%, 03/25/50			6,325		7,772,212
Spectrum Brands, Inc.:
5.75%, 07/15/25			2,010		1,879,350

Security		Par (000)		Value
Household Products (continued)
5.00%, 10/01/29(b)	USD		3,870	$	3,289,500
					26,669,715
Independent Power and Renewable Electricity Producers — 0.9%
Calpine Corp.:
5.50%, 02/01/24			1,905		1,809,750
5.75%, 01/15/25			19,766		18,283,550
5.25%, 06/01/26(b)			13,100		12,445,000
4.50%, 02/15/28(b)			18,275		17,713,044
5.13%, 03/15/28(b)			64,728		59,549,760
Clearway Energy Operating LLC:
5.75%, 10/15/25			10,270		10,167,300
4.75%, 03/15/28(b)			6,079		5,638,272
Pattern Energy Group, Inc., 5.88%, 02/01/24(b)			5,916		5,872,695
Talen Energy Supply LLC:
6.50%, 06/01/25			2,804		1,815,029
10.50%, 01/15/26(b)			2,376		1,710,720
					135,005,120
Industrial Conglomerates — 0.1%
3M Co.:
3.05%, 04/15/30			3,750		3,906,879
3.70%, 04/15/50			6,445		7,284,367
					11,191,246
Insurance — 1.2%
Achmea BV, (EURIBOR Swap Rate 5 Year + 4.78%), 4.62%(a)(l)	EUR		1,400		1,269,495
Acrisure LLC, 8.13%, 02/15/24(b)	USD		4,160		4,052,048
Aflac, Inc., 3.60%, 04/01/30			16,420		16,630,768
AIA Group Ltd., 3.38%, 04/07/30(b)			6,735		6,764,402
Alliant Holdings Intermediate LLC, 6.75%, 10/15/27(b)			49,255		46,122,382
AmWINS Group, Inc., 7.75%, 07/01/26(b)			15,483		15,173,340
Ardonagh Midco 3 plc, 8.63%, 07/15/23(b)			14,831		13,199,590
Assicurazioni Generali SpA(a):
(EURIBOR 3 Month + 4.50%), 4.60%(l)	EUR		1,800		1,945,516
(EURIBOR 3 Month + 5.35%), 5.00%, 06/08/48			900		1,057,040
Galaxy Bidco Ltd., 6.50%, 07/31/26	GBP		1,984		2,222,822
GTCR AP Finance, Inc., 8.00%, 05/15/27(b)	USD		13,219		12,161,480
HUB International Ltd., 7.00%, 05/01/26(b)			53,595		53,059,050
NFP Corp., 8.00%, 07/15/25(b)			8,670		7,933,050
					181,590,983
Interactive Media & Services — 0.2%(b)
Match Group, Inc., 4.13%, 08/01/30			11,975		10,702,656
Rackspace Hosting, Inc., 8.63%, 11/15/24			11,802		10,592,295
Twitter, Inc., 3.88%, 12/15/27			4,852		4,667,018
					25,961,969
Internet & Direct Marketing Retail — 0.0%
Go Daddy Operating Co. LLC, 5.25%, 12/01/27(b)			7,055		7,119,906
IT Services — 1.3%
Banff Merger Sub, Inc.:
8.38%, 09/01/26	EUR		1,247		1,258,959
9.75%, 09/01/26(b)	USD		87,835		77,294,800
Booz Allen Hamilton, Inc., 5.13%, 05/01/25(b)			17,071		16,729,580
Mastercard, Inc.:
3.35%, 03/26/30			8,840		9,789,671
3.85%, 03/26/50			4,760		5,833,126
Presidio Holdings, Inc.(b):
4.88%, 02/01/27			19,078		17,074,810
8.25%, 02/01/28			11,812		10,409,325
Science Applications International Corp., 4.88%, 04/01/28(b)			11,057		10,614,720
Tempo Acquisition LLC, 6.75%, 06/01/25(b)			47,610		43,566,007

54 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
IT Services (continued)
United Group BV:
4.88%, 07/01/24	EUR		1,796	$	1,787,680
(EURIBOR 3 Month + 3.25%), 3.25%, 02/15/26(a)			1,021		888,327
3.63%, 02/15/28			1,604		1,431,516
WEX, Inc., 4.75%, 02/01/23(b)	USD		8,539		8,197,440
					204,875,961
Leisure Products — 0.3%
Mattel, Inc.:
6.75%, 12/31/25(b)			33,177		33,737,691
5.88%, 12/15/27(b)			10,302		10,588,396
6.20%, 10/01/40			1,322		1,093,955
5.45%, 11/01/41			6,126		4,839,540
					50,259,582
Life Sciences Tools & Services — 0.8%
Avantor, Inc.:
4.75%, 10/01/24	EUR		1,237		1,298,802
6.00%, 10/01/24(b)	USD		69,762		73,089,647
9.00%, 10/01/25(b)			25,669		27,021,756
Charles River Laboratories International, Inc.(b):
5.50%, 04/01/26			9,272		9,550,160
4.25%, 05/01/28			4,589		4,423,337
Thermo Fisher Scientific, Inc., 4.50%, 03/25/30			5,820		6,542,480
					121,926,182
Machinery — 1.2%
Amsted Industries, Inc., 5.63%, 07/01/27(b)			8,828		8,588,894
Colfax Corp.(b):
6.00%, 02/15/24			20,111		19,407,115
6.38%, 02/15/26			17,717		17,451,245
Deere & Co.:
3.10%, 04/15/30			4,175		4,419,053
3.75%, 04/15/50			3,080		3,515,925
EnPro Industries, Inc., 5.75%, 10/15/26			6,448		6,206,200
Grinding Media, Inc., 7.38%, 12/15/23(b)			11,889		11,090,059
Husky III Holding Ltd., 13.00%, (13.00% Cash or 13.75% PIK), 02/15/25(b)(j)			15,269		11,214,775
Manitowoc Co., Inc. (The), 9.00%, 04/01/26(b)			2,322		2,054,970
Mueller Water Products, Inc., 5.50%, 06/15/26(b)			7,959		7,700,332
Navistar International Corp., 6.63%, 11/01/25(b)			17,037		14,183,303
Novafives SAS, 5.00%, 06/15/25	EUR		1,660		997,900
Platin 1426 GmbH, 5.38%, 06/15/23			723		608,414
RBS Global, Inc., 4.88%, 12/15/25(b)	USD		22,821		21,337,635
SPX FLOW, Inc.(b):
5.63%, 08/15/24			8,322		8,072,340
5.88%, 08/15/26			1,391		1,335,360
Stevens Holding Co., Inc., 6.13%, 10/01/26(b)			7,007		6,922,320
Terex Corp., 5.63%, 02/01/25(b)			4,154		3,905,175
Titan Acquisition Ltd., 7.75%, 04/15/26(b)			35,658		29,774,430
Wabash National Corp., 5.50%, 10/01/25(b)			14,911		11,854,245
					190,639,690
Marine — 0.0%
CMA CGM SA, 6.50%, 07/15/22	EUR		2,600		1,946,819
Media — 5.1%
Adelphia Commercial Bonds, Escrow, Series B, 0.00%, 12/31/49(e)(f)(m)	USD		800		—
Altice Financing SA:
2.25%, 01/15/25	EUR		1,751		1,711,217
7.50%, 05/15/26(b)	USD		58,894		57,062,397
3.00%, 01/15/28	EUR		1,649		1,598,985
5.00%, 01/15/28(b)	USD		18,472		16,347,720
AMC Networks, Inc.:
4.75%, 12/15/22			733		710,790
4.75%, 08/01/25			6,612		6,430,170

Security		Par (000)		Value
Media (continued)
Block Communications, Inc., 4.88%, 03/01/28(b)	USD		6,846	$	6,366,780
Century Communications Corp. Escrow, 0.00%, 03/15/13(e)(f)(m)			625		—
Clear Channel Worldwide Holdings, Inc.(b):
9.25%, 02/15/24			29,937		25,670,977
5.13%, 08/15/27			79,856		75,563,740
Comcast Corp.:
3.40%, 04/01/30			9,645		10,454,211
3.75%, 04/01/40			5,205		5,875,909
CSC Holdings LLC:
5.38%, 07/15/23(b)			1,288		1,287,987
5.25%, 06/01/24			15,856		15,895,481
7.75%, 07/15/25(b)			30,986		32,225,440
6.63%, 10/15/25(b)			479		503,578
10.88%, 10/15/25(b)			63,757		68,937,256
5.50%, 05/15/26(b)			6,862		7,097,710
5.38%, 02/01/28(b)			11,213		11,437,260
6.50%, 02/01/29(b)			17,034		18,370,999
5.75%, 01/15/30(b)			18,014		18,166,398
Diamond Sports Group LLC, 5.38%, 08/15/26(b)			22,492		18,275,200
DISH DBS Corp.:
6.75%, 06/01/21			23,677		24,008,478
5.88%, 07/15/22			55,407		53,956,445
5.00%, 03/15/23			33,966		32,498,669
5.88%, 11/15/24			9,888		9,616,080
7.75%, 07/01/26			4,563		4,688,482
DISH Network Corp.(n):
2.38%, 03/15/24			3,067		2,430,598
3.38%, 08/15/26			24,335		19,756,406
Entercom Media Corp., 6.50%, 05/01/27(b)			11,894		10,318,045
Fox Corp., 3.05%, 04/07/25			855		853,666
GCI LLC, 6.63%, 06/15/24(b)			8,240		8,157,600
Gray Television, Inc., 5.13%, 10/15/24(b)			1,771		1,731,152
iHeartCommunications, Inc., 4.75%, 01/15/28(b)			2,619		2,357,100
Lamar Media Corp., 4.00%, 02/15/30(b)			2,803		2,606,790
LCPR Senior Secured Financing DAC, 6.75%, 10/15/27(b)			19,984		19,684,240
Meredith Corp., 6.88%, 02/01/26			3,766		3,303,912
Midcontinent Communications, 5.38%, 08/15/27(b)			8,651		8,376,028
Outfront Media Capital LLC, 5.00%, 08/15/27(b)			15,786		14,523,120
Quebecor Media, Inc., 5.75%, 01/15/23			1,537		1,559,886
Radiate Holdco LLC(b):
6.88%, 02/15/23			6,295		5,728,450
6.63%, 02/15/25			7,629		6,484,650
SES SA, (EUR Swap Annual 5 Year + 5.40%), 5.62%(a)(l)	EUR		2,500		2,559,037
Sirius XM Radio, Inc.(b):
4.63%, 07/15/24	USD		3,230		3,278,224
5.38%, 04/15/25			1,248		1,260,467
5.00%, 08/01/27			24,422		24,785,888
5.50%, 07/01/29			18,027		18,387,540
Summer BC Holdco A SARL, 9.25%, 10/31/27	EUR		1,802		1,623,563
Summer BC Holdco B SARL, 5.75%, 10/31/26			5,100		4,679,825
Summer BidCo BV:
9.00%, (9.00% Cash or 9.75% PIK), 11/15/25(j)			3,715		3,603,886
TEGNA, Inc.(b):
5.50%, 09/15/24	USD		2,361		2,242,950
4.63%, 03/15/28			446		391,922
Tele Columbus AG, 3.88%, 05/02/25	EUR		1,600		1,460,240
Telenet Finance Luxembourg Notes SARL:
3.50%, 03/01/28			1,000		1,036,726
5.50%, 03/01/28(b)	USD		17,200		15,996,000
Terrier Media Buyer, Inc., 8.88%, 12/15/27(b)			29,427		24,865,815

CONSOLIDATED SCHEDULESOF INVESTMENTS 55

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Media (continued)
Univision Communications, Inc.(b):
5.13%, 05/15/23	USD		4,906	$	4,341,810
5.13%, 02/15/25			7,260		6,189,150
UPCB Finance VII Ltd., 3.63%, 06/15/29	EUR		1,554		1,550,928
Videotron Ltd., 5.13%, 04/15/27(b)	USD		3,869		3,869,000
VZ Vendor Financing BV, 2.50%, 01/31/24	EUR		2,962		3,077,316
WMG Acquisition Corp., 5.50%, 04/15/26(b)	USD		6,577		6,429,017
Ziggo Bond Co. BV(b):
6.00%, 01/15/27			2,725		2,643,250
5.13%, 02/28/30			11,000		10,780,000
Ziggo BV:
4.25%, 01/15/27	EUR		3,081		3,367,125
5.50%, 01/15/27(b)	USD		10,150		10,150,000
2.88%, 01/15/30	EUR		1,018		1,021,705
4.88%, 01/15/30(b)	USD		4,994		4,863,831
					797,085,217
Metals & Mining — 2.9%
Allegheny Technologies, Inc., 5.88%, 12/01/27			9,527		7,931,227
Anglo American Capital plc(b):
5.38%, 04/01/25			20,765		20,983,148
5.63%, 04/01/30			30,560		30,991,625
Arconic Corp., 6.13%, 02/15/28(b)			9,216		9,423,360
Big River Steel LLC, 7.25%, 09/01/25(b)			17,315		15,756,650
Cleveland-Cliffs, Inc., 6.75%, 03/15/26(b)			3,279		2,918,310
Constellium SE(b):
5.75%, 05/15/24			29,151		26,020,183
6.63%, 03/01/25			17,252		15,526,800
5.88%, 02/15/26			31,989		27,830,430
Freeport-McMoRan, Inc.:
3.55%, 03/01/22			2,833		2,737,386
3.88%, 03/15/23			44,720		42,260,400
4.55%, 11/14/24			21,912		20,641,104
4.25%, 03/01/30			15,537		13,517,190
5.45%, 03/15/43			120,007		107,406,265
Joseph T Ryerson & Son, Inc., 11.00%, 05/15/22(b)			1,771		1,647,030
Kaiser Aluminum Corp., 4.63%, 03/01/28(b)			9,857		8,748,088
New Gold, Inc.(b):
6.25%, 11/15/22			13,365		12,980,756
6.38%, 05/15/25			12,300		11,431,313
Novelis Corp.(b):
5.88%, 09/30/26			34,271		33,632,360
4.75%, 01/30/30			38,657		34,404,730
thyssenkrupp AG:
1.88%, 03/06/23	EUR		1,147		1,106,898
2.88%, 02/22/24			6,772		6,572,578
2.50%, 02/25/25			200		190,250
					454,658,081
Mortgage Real Estate Investment Trusts (REITs) — 0.0%
Starwood Property Trust, Inc., 5.00%, 12/15/21 USD			3,256		2,979,240
Multiline Retail — 0.0%
B&M European Value Retail SA, 4.13%, 02/01/22	GBP		770		846,142
Oil, Gas & Consumable Fuels — 4.3%
Apache Corp., 3.25%, 04/15/22	USD		471		353,627
Ascent Resources Utica Holdings LLC, 10.00%, 04/01/22(b)			29,144		17,049,240
Baytex Energy Corp., 8.75%, 04/01/27(b)			15,350		5,856,025
Buckeye Partners LP:
4.13%, 03/01/25(b)			2,597		2,189,271
3.95%, 12/01/26			2,631		2,156,631
4.50%, 03/01/28(b)			6,121		5,019,220
5.85%, 11/15/43			6,841		4,581,417

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
5.60%, 10/15/44	USD		8,956	$	5,642,280
Callon Petroleum Co.:
6.25%, 04/15/23			22,909		5,440,888
6.13%, 10/01/24			11,650		2,067,875
8.25%, 07/15/25			15,782		2,525,120
6.38%, 07/01/26			12,657		2,120,047
Centennial Resource Production LLC, 6.88%, 04/01/27(b)			9,314		2,281,930
Cheniere Corpus Christi Holdings LLC, 5.13%, 06/30/27			5,341		4,743,388
Cheniere Energy Partners LP:
5.25%, 10/01/25			868		798,560
5.63%, 10/01/26			5,046		4,642,320
4.50%, 10/01/29(b)			18,748		16,310,760
Chesapeake Energy Corp., 11.50%, 01/01/25(b)			27,218		4,627,060
Cimarex Energy Co., 4.38%, 06/01/24			3,547		2,795,216
CNX Resources Corp., 5.88%, 04/15/22			32,253		29,511,495
Comstock Resources, Inc.:
7.50%, 05/15/25(b)			13,859		9,008,350
9.75%, 08/15/26			5,869		4,180,489
Continental Resources, Inc., 5.00%, 09/15/22			1,219		777,649
Crestwood Midstream Partners LP:
6.25%, 04/01/23(d)			7,097		3,975,739
5.63%, 05/01/27(b)			17,126		9,414,334
CrownRock LP, 5.63%, 10/15/25(b)			54,903		28,549,560
CVR Energy, Inc.(b):
5.25%, 02/15/25			12,037		9,358,767
5.75%, 02/15/28			4,096		3,061,760
DCP Midstream Operating LP:
5.38%, 07/15/25			7,807		5,330,620
5.13%, 05/15/29			9,524		5,999,644
6.45%, 11/03/36(b)			14,865		7,130,740
6.75%, 09/15/37(b)			12,293		6,638,220
Denbury Resources, Inc., 9.00%, 05/15/21(b)			12,718		3,720,015
Diamondback Energy, Inc., 3.50%, 12/01/29 .			792		538,499
Endeavor Energy Resources LP(b):
5.50%, 01/30/26			22,061		15,226,723
5.75%, 01/30/28			22,975		15,623,000
EnLink Midstream LLC, 5.38%, 06/01/29			502		261,040
EnLink Midstream Partners LP:
4.40%, 04/01/24			15,993		8,071,667
4.15%, 06/01/25			377		182,732
4.85%, 07/15/26			1,948		957,832
5.60%, 04/01/44			7,271		2,453,962
5.05%, 04/01/45			1,306		476,298
EnQuest plc, 0.00%, (0.00% Cash or 7.00% PIK), 04/15/22(b)(j)(k)			478		114,720
EQT Corp.:
3.90%, 10/01/27			3,151		2,173,245
7.00%, 02/01/30(d)			954		710,749
Extraction Oil & Gas, Inc.(b):
7.38%, 05/15/24			25,017		4,440,518
5.63%, 02/01/26			22,123		3,650,295
Genesis Energy LP:
6.00%, 05/15/23			10,314		7,481,260
5.63%, 06/15/24			11,166		7,816,200
6.50%, 10/01/25			715		516,802
7.75%, 02/01/28			3,517		2,448,535
Great Western Petroleum LLC, 9.00%, 09/30/21(b)			23,178		14,833,920
Hess Midstream Operations LP(b):
5.63%, 02/15/26			10,696		7,552,071
5.13%, 06/15/28			3,833		2,693,833
Holly Energy Partners LP, 5.00%, 02/01/28(b)			11,011		9,221,712

56 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Indigo Natural Resources LLC, 6.88%, 02/15/26(b)	USD		23,754	$	15,677,640
Ithaca Energy North Sea plc, 9.38%, 07/15/24(b)			1,075		505,250
Matador Resources Co., 5.88%, 09/15/26			16,347		4,789,671
MEG Energy Corp.(b):
7.00%, 03/31/24			761		351,011
6.50%, 01/15/25			25,227		15,956,078
7.13%, 02/01/27			17,020		8,409,922
MPLX LP, 6.38%, 05/01/24(b)			4,824		4,327,437
Murphy Oil Corp.:
5.75%, 08/15/25			485		259,523
5.87%, 12/01/42(d)			1,714		702,569
Neptune Energy Bondco plc, 6.63%, 05/15/25(b)			2,826		1,582,560
NGPL PipeCo LLC, 7.77%, 12/15/37(b)			12,239		12,184,090
NuStar Logistics LP, 6.00%, 06/01/26			6,462		4,781,880
Occidental Petroleum Corp.:
Series 1, 4.10%, 02/01/21			7,145		6,073,148
4.85%, 03/15/21			5,010		4,205,849
2.60%, 08/13/21			10,019		7,877,882
2.70%, 08/15/22			7,115		5,073,319
Parkland Fuel Corp., 5.88%, 07/15/27(b)			11,300		10,592,620
Parsley Energy LLC(b):
5.38%, 01/15/25			10,784		8,330,424
5.25%, 08/15/25			6,084		4,623,840
5.63%, 10/15/27			1,691		1,192,155
4.13%, 02/15/28			10,485		7,129,800
PBF Holding Co. LLC:
7.25%, 06/15/25			4,230		2,835,369
6.00%, 02/15/28(b)			5,552		3,664,320
PDC Energy, Inc.:
1.13%, 09/15/21(n)			10,294		8,396,321
6.13%, 09/15/24			9,081		4,846,984
6.25%, 12/01/25			2,220		1,087,467
5.75%, 05/15/26			6,740		3,774,400
QEP Resources, Inc.:
6.88%, 03/01/21			8,213		4,188,630
5.38%, 10/01/22			19,076		8,965,720
5.25%, 05/01/23			9,333		3,453,210
5.63%, 03/01/26			14,129		5,157,085
Range Resources Corp.:
5.88%, 07/01/22			1,521		1,095,120
5.00%, 08/15/22			9,151		6,860,505
5.00%, 03/15/23			10,232		7,469,360
Sabine Pass Liquefaction LLC, 6.25%, 03/15/22			1,093		1,060,322
SM Energy Co.:
1.50%, 07/01/21(n)			33,932		12,253,645
6.13%, 11/15/22			11,121		4,705,606
5.00%, 01/15/24			7,606		2,509,980
5.63%, 06/01/25			3,710		1,011,012
6.75%, 09/15/26			3,106		931,800
6.63%, 01/15/27			4,151		1,208,211
Southwestern Energy Co., 4.10%, 03/15/22			11,690		8,767,500
Sunoco LP:
4.88%, 01/15/23			4,626		4,417,830
5.50%, 02/15/26			680		588,390
6.00%, 04/15/27			1,429		1,228,940
Tallgrass Energy Partners LP(b):
5.50%, 09/15/24			4,987		2,742,850
6.00%, 03/01/27			5,446		2,886,380
Targa Resources Partners LP:
4.25%, 11/15/23			4,722		4,064,225
5.13%, 02/01/25			4,963		4,230,461
5.88%, 04/15/26			9,191		7,628,530
5.38%, 02/01/27			1,247		1,026,281
6.50%, 07/15/27			12,857		10,960,593

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
5.00%, 01/15/28	USD		11,122	$	8,965,055
6.88%, 01/15/29			11,822		9,516,710
5.50%, 03/01/30(b)			17,033		13,156,289
TerraForm Power Operating LLC(b):
4.25%, 01/31/23			10,671		10,590,967
5.00%, 01/31/28			2,896		3,034,429
4.75%, 01/15/30			15,543		15,076,710
Viper Energy Partners LP, 5.38%, 11/01/27(b)			4,881		4,100,040
WPX Energy, Inc.:
8.25%, 08/01/23			8,856		6,509,160
5.75%, 06/01/26			7,872		4,487,040
5.25%, 10/15/27			3,464		1,905,200
4.50%, 01/15/30			19,954		10,835,022
					672,124,207
Paper & Forest Products — 0.1%
Norbord, Inc., 6.25%, 04/15/23(b)			9,325		8,998,625
WEPA Hygieneprodukte GmbH, (EURIBOR 3 Month + 2.88%), 2.88%, 12/15/26(a)	EUR		837		810,044
					9,808,669
Personal Products — 0.0%
Coty, Inc.:
4.00%, 04/15/23			1,300		1,197,198
4.75%, 04/15/26			1,600		1,445,240
					2,642,438
Pharmaceuticals — 2.3%
Bausch Health Americas, Inc.(b):
9.25%, 04/01/26	USD		9,296		9,824,013
8.50%, 01/31/27			49,623		51,856,035
Bausch Health Cos., Inc.:
5.50%, 03/01/23(b)			6,847		6,710,060
4.50%, 05/15/23	EUR		21,071		22,238,061
5.88%, 05/15/23(b)	USD		982		977,090
7.00%, 03/15/24(b)			5,000		5,093,700
6.13%, 04/15/25(b)			33,644		33,139,340
5.50%, 11/01/25(b)			13,833		13,975,480
9.00%, 12/15/25(b)			23,381		24,648,250
5.75%, 08/15/27(b)			19,291		19,862,014
7.00%, 01/15/28(b)			18,411		18,897,050
5.00%, 01/30/28(b)			4,201		3,977,087
7.25%, 05/30/29(b)			21,116		21,914,185
5.25%, 01/30/30(b)			517		488,854
Catalent Pharma Solutions, Inc.:
4.88%, 01/15/26(b)			15,224		14,767,280
5.00%, 07/15/27(b)			13,125		12,731,250
2.38%, 03/01/28	EUR		4,815		4,890,353
Cheplapharm Arzneimittel GmbH, 3.50%, 02/11/27			1,530		1,544,005
Diocle Spa, (EURIBOR 3 Month + 3.88%), 3.87%, 06/30/26(a)			746		728,146
Elanco Animal Health, Inc., 5.65%, 08/28/28(d)	USD		5,904		6,224,895
Endo DAC, 6.00%, 07/15/23(b)			10,251		7,425,619
Nidda BondCo GmbH:
5.00%, 09/30/25	EUR		500		474,572
7.25%, 09/30/25			2,899		2,817,448
Nidda Healthcare Holding GmbH, 3.50%, 09/30/24			3,835		3,901,826
Par Pharmaceutical, Inc., 7.50%, 04/01/27(b)	USD		53,866		53,596,670
Pfizer, Inc., 2.63%, 04/01/30			5,250		5,520,188
Rossini SARL, 6.75%, 10/30/25	EUR		3,657		4,032,967
Teva Pharmaceutical Finance Netherlands II BV:
1.88%, 03/31/27			600		532,287
1.63%, 10/15/28			500		425,478
					353,214,203

CONSOLIDATED SCHEDULESOF INVESTMENTS 57

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Professional Services — 1.0%
ASGN, Inc., 4.63%, 05/15/28(b)	USD		14,079	$	13,077,983
Dun & Bradstreet Corp. (The)(b):
6.88%, 08/15/26			33,673		35,019,920
10.25%, 02/15/27			31,308		33,186,480
House of Finance NV (The), 4.38%, 07/15/26	EUR		356		280,728
Intertrust Group BV, 3.38%, 11/15/25			4,373		4,591,479
Jaguar Holding Co. II, 6.38%, 08/01/23(b)	USD		61,394		62,468,395
					148,624,985
Real Estate Management & Development — 0.2%
ADLER Real Estate AG:
1.50%, 04/17/22	EUR		400		412,043
1.88%, 04/27/23			100		99,813
3.00%, 04/27/26			1,700		1,625,407
Citycon OYJ, (EUR Swap Annual 5 Year + 4.71%), 4.50%(a)(l)			1,700		1,379,948
Consus Real Estate AG:
Series CC1, 4.00%, 11/29/22(n)			700		582,883
9.63%, 05/15/24			841		751,306
Five Point Operating Co. LP, 7.88%, 11/15/25(b)USD			8,725		7,503,500
Greystar Real Estate Partners LLC, 5.75%, 12/01/25(b)			2,428		2,197,486
Heimstaden Bostad AB, (EUR Swap Annual 5 Year + 3.67%), 3.25%(a)(l)	EUR		925		823,797
Howard Hughes Corp. (The), 5.38%, 03/15/25(b)USD			3,747		3,625,222
Newmark Group, Inc., 6.13%, 11/15/23			5,333		5,424,879
Peach Property Finance GmbH, 3.50%, 02/15/23	EUR		763		801,076
Summit Properties Ltd., 2.00%, 01/31/25			1,440		1,333,058
TLG Finance SARL, (EUR Swap Annual 5 Year + 3.98%), 3.38%(a)(l)			2,100		2,160,592
Unique Pub Finance Co. plc (The), Series N, 6.46%, 03/30/32(d)	GBP		3,266		4,536,656
					33,257,666
Road & Rail — 0.4%
Ashtead Capital, Inc.(b):
5.25%, 08/01/26	USD		1,100		1,047,750
4.00%, 05/01/28			6,915		5,960,730
4.25%, 11/01/29			3,621		3,067,186
Capitol Investment Merger Sub 2 LLC, 10.00%, 08/01/24(b)			10,092		9,082,800
Kapla Holding SAS:
(EURIBOR 3 Month + 3.25%), 3.25%, 12/15/26(a)	EUR		720		516,157
3.38%, 12/15/26			794		569,207
Loxam SAS:
4.25%, 04/15/24			1,100		1,031,211
3.25%, 01/14/25			1,431		1,254,709
3.75%, 07/15/26			1,202		1,058,560
Uber Technologies, Inc.(b):
7.50%, 11/01/23	USD		11,817		11,492,742
8.00%, 11/01/26			8,450		8,386,625
7.50%, 09/15/27			13,461		13,288,699
					56,756,376
Semiconductors & Semiconductor Equipment — 0.2%
Advanced Micro Devices, Inc., 7.50%, 08/15/22			3,867		4,099,020
Entegris, Inc., 4.63%, 02/10/26(b)			7,360		6,992,000
Infineon Technologies AG, (EUR Swap Annual 5 Year + 3.39%), 2.87%(a)(l)	EUR		2,000		2,063,720
NVIDIA Corp.:
2.85%, 04/01/30	USD		1,255		1,309,738
3.50%, 04/01/40			2,900		3,076,781
3.50%, 04/01/50			3,205		3,484,897
3.70%, 04/01/60			2,035		2,274,685

Security		Par (000)		Value
Semiconductors & Semiconductor Equipment (continued)
Qorvo, Inc.:
5.50%, 07/15/26	USD		4,157	$	4,345,104
4.38%, 10/15/29(b)			1,244		1,156,920
Sensata Technologies UK Financing Co. plc, 6.25%, 02/15/26(b)			5,060		4,958,800
					33,761,665
Software — 5.7%
ACI Worldwide, Inc., 5.75%, 08/15/26(b)			37,484		37,109,160
Ascend Learning LLC:
6.88%, 08/01/25(b)			36,749		35,646,530
Camelot Finance SA, 4.50%, 11/01/26(b)			28,147		27,302,590
Castle US Holding Corp., 9.50%, 02/15/28(b)	.		17,797		16,907,150
CDK Global, Inc.:
4.88%, 06/01/27			29,621		30,361,525
5.25%, 05/15/29(b)			3,267		3,332,340
Change Healthcare Holdings LLC, 5.75%, 03/01/25(b)			30,951		28,474,920
Fair Isaac Corp., 4.00%, 06/15/28(b)			5,403		5,119,342
Genesys Telecommunications Laboratories, Inc., 10.00%, 11/30/24(b)			52,683		53,883,646
Infor US, Inc., 6.50%, 05/15/22			3,215		3,158,737
Nuance Communications, Inc., 5.63%, 12/15/26			6,349		6,178,720
Open Text Corp., 3.88%, 02/15/28(b)			24,007		22,566,580
Open Text Holdings, Inc., 4.13%, 02/15/30(b)	.		14,276		13,423,009
Oracle Corp.:
2.95%, 04/01/30			93,565		94,209,217
3.60%, 04/01/40			58,102		58,107,612
3.60%, 04/01/50			116,204		116,206,932
3.85%, 04/01/60			116,204		116,955,903
PTC, Inc.(b):
3.63%, 02/15/25			7,325		6,848,875
4.00%, 02/15/28			7,643		7,339,573
RP Crown Parent LLC, 7.38%, 10/15/24(b)			32,485		30,951,708
Solera LLC, 10.50%, 03/01/24(b)			109,432		107,243,360
Sophia LP, 9.00%, 09/30/23(b)			15,029		15,029,000
SS&C Technologies, Inc., 5.50%, 09/30/27(b)			41,156		42,893,195
Veritas US, Inc., 7.50%, 02/01/23(b)			9,271		8,158,480
					887,408,104
Specialty Retail — 1.0%
Asbury Automotive Group, Inc.(b):
4.50%, 03/01/28			7,809		6,637,650
4.75%, 03/01/30			3,028		2,573,800
Dufry One BV:
2.00%, 02/15/27	EUR		1,943		1,669,796
eG Global Finance plc:
3.63%, 02/07/24			1,746		1,458,852
4.38%, 02/07/25			817		683,911
6.75%, 02/07/25(b)	USD		15,692		12,867,440
6.25%, 10/30/25	EUR		4,809		4,216,526
8.50%, 10/30/25(b)	USD		12,676		11,281,640
Group 1 Automotive, Inc.:
5.00%, 06/01/22(d)			5,548		5,104,160
5.25%, 12/15/23(b)			1,743		1,788,754
Home Depot, Inc. (The):
2.70%, 04/15/30			3,015		3,065,692
3.30%, 04/15/40			4,895		5,014,263
3.35%, 04/15/50			1,575		1,645,565
L Brands, Inc.:
6.88%, 11/01/35			19,575		14,485,500
6.75%, 07/01/36			3,311		2,383,920
Murphy Oil USA, Inc., 4.75%, 09/15/29			6,154		5,769,375
Penske Automotive Group, Inc., 5.50%, 05/15/26			2,732		2,492,131

58 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Specialty Retail (continued)
PetSmart, Inc.(b):
7.13%, 03/15/23	USD		12,595	$	11,729,094
5.88%, 06/01/25			19,821		19,523,685
SRS Distribution, Inc., 8.25%, 07/01/26(b)			14,385		10,932,600
Staples, Inc., 7.50%, 04/15/26(b)			37,519		33,157,416
					158,481,770
Technology Hardware, Storage & Peripherals — 0.3%
Dell International LLC, 7.13%, 06/15/24(b)			9,023		9,316,248
NCR Corp.(b):
5.75%, 09/01/27			4,998		4,548,180
6.13%, 09/01/29			14,070		13,139,973
Western Digital Corp., 4.75%, 02/15/26			16,230		16,473,450
Xerox Corp., 4.80%, 03/01/35			11,712		9,486,720
					52,964,571
Textiles, Apparel & Luxury Goods — 0.4%
European TopSoho SARL, Series SMCP, 4.00%, 09/21/21(n)	EUR		2,700		1,174,754
Levi Strauss & Co., 3.38%, 03/15/27			400		407,985
NIKE, Inc.:
2.85%, 03/27/30	USD		24,010		25,368,629
3.25%, 03/27/40			18,280		19,158,211
3.38%, 03/27/50			9,140		9,970,849
William Carter Co. (The), 5.63%, 03/15/27(b)			5,526		5,346,405
					61,426,833
Thrifts & Mortgage Finance — 0.4%
Deutsche Pfandbriefbank AG, 4.60%, 02/22/27	EUR		700		718,943
Ladder Capital Finance Holdings LLLP, 4.25%, 02/01/27(b)	USD		30,348		23,974,920
Nationstar Mortgage Holdings, Inc.(b):
8.13%, 07/15/23			15,679		15,330,926
9.13%, 07/15/26			8,474		7,668,970
6.00%, 01/15/27			11,765		10,000,250
					57,694,009
Trading Companies & Distributors — 0.7%
Beacon Roofing Supply, Inc.(b):
4.88%, 11/01/25			4,567		4,121,717
4.50%, 11/15/26			4,496		4,148,909
HD Supply, Inc., 5.38%, 10/15/26(b)			64,177		62,387,745
Herc Holdings, Inc., 5.50%, 07/15/27(b)			18,503		17,207,790
United Rentals North America, Inc.:
5.50%, 07/15/25			5,895		5,777,100
4.63%, 10/15/25			4,491		4,311,360
5.88%, 09/15/26			3,504		3,548,851
6.50%, 12/15/26			2,652		2,691,780
3.88%, 11/15/27			1,487		1,405,215
5.25%, 01/15/30			2,941		2,940,118
4.00%, 07/15/30			5,834		5,221,430
					113,762,015
Transportation Infrastructure — 0.0%
Atlantia SpA:
1.63%, 02/03/25	EUR		1,500		1,350,281
1.88%, 07/13/27			500		440,369
Autostrade per l’Italia SpA:
6.25%, 06/09/22	GBP		600		707,279
5.88%, 06/09/24	EUR		3,600		4,010,144
4.38%, 09/16/25			500		532,149
					7,040,222
Wireless Telecommunication Services — 1.9%
Altice France Holding SA, 8.00%, 05/15/27(b)			1,000		1,082,730
Connect Finco SARL, 6.75%, 10/01/26(b)	USD		98,242		81,172,453
Gogo Intermediate Holdings LLC, 9.88%, 05/01/24(b)			18,432		14,561,280

Security		Par (000)		Value
Wireless Telecommunication Services (continued)
Hughes Satellite Systems Corp., 5.25%, 08/01/26	USD		3,334	$	3,300,660
Matterhorn Telecom SA, 4.00%, 11/15/27	EUR		2,400		2,319,266
SoftBank Group Corp.:
4.00%, 04/20/23			4,341		4,386,940
(USD Swap Rate 5 Year + 4.23%), 6.00%(a)(l)	USD		1,500		1,125,000
4.50%, 04/20/25	EUR		1,400		1,384,095
4.75%, 07/30/25			1,409		1,416,291
3.13%, 09/19/25			2,000		1,852,594
5.00%, 04/15/28			2,896		2,815,829
4.00%, 09/19/29			900		793,929
Sprint Corp.:
7.88%, 09/15/23	USD		27,262		29,922,226
7.13%, 06/15/24			3,861		4,238,026
7.63%, 02/15/25			10,314		11,396,970
7.63%, 03/01/26			26,736		30,259,805
Telefonica Europe BV(a)(l):
(EUR Swap Annual 5 Year + 3.86%), 3.75%	EUR		1,200		1,286,364
(EUR Swap Annual 5 Year + 2.33%), 2.63%			1,500		1,546,189
(EUR Swap Annual 10 Year + 4.30%), 5.87%			2,600		2,932,874
(EUR Swap Annual 6 Year + 4.11%), 4.37%			4,000		4,288,905
(EUR Swap Annual 8 Year + 2.97%), 3.88%			4,400		4,548,919
T-Mobile USA, Inc.:
4.00%, 04/15/22	USD		1,180		1,182,950
6.00%, 03/01/23			7,301		7,341,229
6.00%, 04/15/24			1,489		1,518,035
6.38%, 03/01/25			8,418		8,597,135
5.13%, 04/15/25			866		885,459
6.50%, 01/15/26			3,360		3,528,000
4.50%, 02/01/26			11,809		12,074,703
4.75%, 02/01/28			19,428		20,240,090
Vodafone Group plc(a):
(EUR Swap Annual 5 Year + 3.43%), 4.20%, 10/03/78	EUR		2,100		2,223,447
(EUR Swap Annual 5 Year + 2.67%), 3.10%, 01/03/79			5,400		5,724,878
Xplornet Communications, Inc., 9.63%, (9.63% Cash or 10.63% PIK), 06/01/22(b)(j)	USD		7,338		6,824,499
Ypso Finance Bis SA:
8.00%, 05/15/27	EUR		2,554		2,765,293
6.00%, 02/15/28(b)	USD		22,559		19,844,701
					299,381,764
Total Corporate Bonds — 78.8% (Cost: $13,333,567,576)					12,229,933,379
Floating Rate Loan Interests — 8.3%(k)
Aerospace & Defense — 0.1%
Sequa Mezzanine Holdings LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 6.74%, 11/28/21			10,274		8,193,517
Auto Components — 0.1%
Panther BF Aggregator 2 LP, Term Loan B, (LIBOR USD 1 Month + 3.50%), 4.44%, 04/30/26(f)			14,164		12,889,576
Automobiles — 0.0%
Dealer Tire LLC, Term Loan B1, (LIBOR USD 1 Month + 4.25%), 5.24%, 12/12/25			4,086		3,309,466
Building Products — 0.0%
CPG Merger Sub LLC, Term Loan, (LIBOR USD 3 Month + 3.75%), 5.93%, 05/05/24			6,136		5,088,858

CONSOLIDATED SCHEDULESOF INVESTMENTS 59

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Capital Markets — 0.0%
Jefferies Finance LLC, Term Loan, (LIBOR USD 1 Month + 3.25%), 4.25%, 06/03/26	USD		5,642	$	4,664,475
Chemicals — 0.4%
Alpha 3 BV, Term Loan, 01/31/24(f)(o)			42,891		39,031,116
Ascend Performance Materials LLC, Term Loan B, (LIBOR USD 3 Month + 5.25%), 6.70%, 08/14/26(f)			20,247		17,007,694
Invictus Co., Term Loan B26, (LIBOR USD 3 Month + 6.75%), 8.53%, 03/30/26(f)			2,582		1,807,378
Momentive Performance Materials, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 4.24%, 05/15/24			6,034		4,849,624
					62,695,812
Commercial Services & Supplies — 0.6%
Advanced Disposal Services, Inc., Term Loan, 11/10/23(o)			2,123		2,093,195
Brand Energy & Infrastructure Services, Inc., Term Loan, (LIBOR USD 3 Month + 4.25%), 5.70%-6.12%, 06/21/24			77,084		61,269,157
Capri Acquisitions Bidco Ltd., Term Loan, (LIBOR USD 3 Month + 3.00%), 4.78%, 11/01/24(f)			3,980		3,412,589
Diamond (BC) BV, Term Loan, (LIBOR USD 3 Month + 3.00%), 4.78%, 09/06/24			11,029		8,161,738
GFL Environmental, Inc., Term Loan B, (LIBOR USD 1 Month + 3.00%), 3.99%-4.00%, 05/30/25			7,430		7,169,854
KAR Auction Services, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 3.19%, 09/19/26(f)			2,821		2,595,014
Tempo Acquisition LLC, Term Loan, 05/01/24(o)			1,670		1,486,009
					86,187,556
Construction & Engineering — 0.1%
SRS Distribution, Inc., Term Loan B, (LIBOR USD 1 Month + 3.00%), 3.99%-4.07%, 05/23/25			17,922		15,099,445
Construction Materials — 0.0%
Core & Main LP, Term Loan, 08/01/24(o)			5,482		4,810,620
Containers & Packaging — 0.1%
BWAY Holding Co., Term Loan, (LIBOR USD 3 Month + 3.25%), 5.08%, 04/03/24			8,445		6,845,900
Charter NEX US, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.50%), 4.49%, 05/16/24			4,223		3,652,706
					10,498,606
Diversified Consumer Services — 0.1%
Maverick Purchaser Sub LLC, Term Loan, (LIBOR USD 1 Month + 4.00%), 4.99%, 01/29/27			3,532		3,249,440
Sotheby’s, Inc., Term Loan B, (LIBOR USD 1 Month + 5.50%), 6.50%, 01/15/27			6,900		5,301,593
TierPoint LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 4.75%, 05/06/24			6,816		5,963,882
					14,514,915
Diversified Financial Services — 0.2%
Advisor Group Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 5.00%), 5.99%, 07/31/26			5,245		3,859,322
Deerfield Dakota Holding LLC, Term Loan, 12/30/30(f)(o)			4,573		3,841,645
Triton Bidco, Term Loan B, 09/23/26(o)			20,871		16,331,932

Security		Par (000)		Value
Diversified Financial Services (continued)
VS Buyer LLC, Term Loan B, (LIBOR USD 3 Month + 3.25%), 4.86%, 02/28/27(f)	USD		3,970	$	3,791,350
					27,824,249
Diversified Telecommunication Services — 1.0%
Altice France SA, Term Loan, (LIBOR USD 1 Month + 4.00%), 4.70%, 08/14/26			8,573		8,122,859
CenturyLink, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 3.24%, 03/15/27			27,066		25,121,034
Frontier Communications Corp., Term Loan B, 06/15/24(o)			35,466		33,553,677
Ligado Networks LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 0.00%), 11.20% (11.20% Cash or 11.75% PIK), 12/07/20(f)(j)			14,831		8,777,514
Ligado Networks LLC, Term Loan, 13.50%, 12/07/20(p)			67,483		9,489,814
Zayo Group LLC, Term Loan, 03/09/27(o)			68,608		64,491,520
					149,556,418
Energy Equipment & Services — 0.4%
McDermott International, Inc., Term Loan, 10/21/20(o)			7,716		6,967,103
Mcdermott Technology, Term Loan, (LIBOR USD 6 Month + 9.00%), 10.65%, 10/23/20 .			14,808		13,371,369
Pioneer Energy Services Corp., Term Loan, (LIBOR USD 3 Month + 6.75%), 10.00%, 11/08/22(f)			41,248		38,773,558
					59,112,030
Entertainment — 0.0%
Renaissance Learning, Inc., Term Loan, 05/24/25(o)			290		239,207
Food Products — 0.0%
Chobani LLC, Term Loan, (LIBOR USD 1 Month + 3.50%), 4.50%, 10/10/23			6,860		6,087,839
Health Care Equipment & Supplies — 0.5%
Immucor, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 6.45%, 06/15/21			47,346		40,480,882
Ortho-Clinical Diagnostics, Inc., Term Loan, (EURIBOR 3 Month + 3.50%), 3.50%, 06/30/25	EUR		9,000		7,990,511
Sotera Health Holdings LLC, Term Loan, (LIBOR USD 1 Month + 4.50%), 5.50%, 11/20/26	USD		25,479		22,063,174
					70,534,567
Health Care Providers & Services — 0.5%
AHP Health Partners, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 5.50%, 06/30/25			6,705		5,889,609
Azalea TopCo, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 4.49%, 07/24/26(f)			8,348		7,596,694
Envision Healthcare Corp., Term Loan, (LIBOR USD 1 Month + 3.75%), 4.74%, 10/10/25			48,066		24,273,088
Gentiva Health Services, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 4.25%, 07/02/25(f)			8,753		8,183,914
Ortho-Clinical Diagnostics, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 4.77%, 06/30/25			7,535		6,376,393
Quorum Health Corp., 1st Lien Term Loan, (LIBOR USD 3 Month + 6.75%), 8.53%, 04/29/22			10,179		8,255,215
Regionalcare Hospital, Term Loan B, 11/16/25(o)			5,134		4,739,433

60 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Health Care Providers & Services (continued)
WCG Purchaser Corp., Term Loan, (LIBOR USD 3 Month + 4.00%), 5.87%, 01/08/27(f).	USD		10,000	$	9,400,000
					74,714,346
Health Care Technology — 0.2%
Athenahealth, Inc., Term Loan B, (LIBOR USD 3 Month + 4.50%), 5.28%, 02/05/26(f)			32,415		30,145,851
Hotels, Restaurants & Leisure — 0.0%
Stars Group Holdings BV, Term Loan, 07/10/25(o)			7,200		6,845,963
Independent Power and Renewable Electricity Producers — 0.0%
Calpine Corp., Term Loan, (LIBOR USD 1 Month + 2.00%), 2.99%, 08/12/26(f)			850		799,166
Industrial Conglomerates — 0.2%(f)
PSAV Holdings LLC, 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 9.01%, 09/01/25			15,568		9,340,967
Vertiv Group Corp., Term Loan, 03/02/27(o)			18,583		15,981,380
					25,322,347
Insurance — 0.4%
Alliant Holdings Intermediate LLC, Term Loan, (LIBOR USD 1 Month + 3.00%), 3.99%, 05/09/25			5,457		4,943,831
Asurion LLC, 2nd Lien Term Loan B2, (LIBOR USD 1 Month + 6.50%), 7.49%, 08/04/25			22,991		20,950,549
Asurion LLC, Term Loan B4, 08/04/22(o)			3,524		3,324,052
Hub International Ltd., Term Loan B, 04/25/25(o)			8,874		8,319,266
Sedgwick, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 4.24%, 12/31/25			20,130		17,697,996
Sedgwick, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 4.00%), 4.99%, 09/03/26			12,017		10,770,406
					66,006,100
IT Services — 0.6%
Boxer Parent Co., Inc., Term Loan B, 10/02/25(o)			7,718		6,369,280
Camelot U.S. Acquisition 1 Co., Term Loan B, (LIBOR USD 1 Month + 3.25%), 4.24%, 10/30/26(f)			8,892		8,358,212
CCC Information Services, Inc., Term Loan, 04/29/24(o)			2,131		1,933,071
Mitchell International, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 4.24%, 11/29/24			6,593		5,450,099
Mitchell International, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 8.24%, 12/01/25			5,095		3,821,597
Peak 10 Holding Corp., 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 8.71%, 08/01/25			3,818		1,444,512
Pug LLC, Term Loan, (LIBOR USD 1 Month + 3.50%), 4.49%, 02/12/27(f)			9,359		7,955,107
Solera LLC, Term Loan B1, 03/03/23(o)			6,108		5,695,797
SS&C Technologies Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 1.75%), 2.74%, 04/16/25			3,109		2,898,986
Verscend Holding Corp., Term Loan B, (LIBOR USD 1 Month + 4.50%), 5.49%, 08/27/25(f)			48,832		45,902,006
					89,828,667

Security		Par (000)		Value
Machinery — 0.3%
Ingersoll-Rand Services Co., Term Loan, (LIBOR USD 1 Month + 1.75%), 2.74%, 03/01/27	USD		4,504	$	4,211,240
MHI Holdings LLC, Term Loan B, (LIBOR USD 1 Month + 5.00%), 5.99%, 09/21/26			11,082		9,142,836
Titan Acquisition Ltd., Term Loan, (LIBOR USD 3 Month + 3.00%), 4.45%, 03/28/25			40,096		32,677,982
					46,032,058
Media — 1.0%
Ascend Learning LLC, Term Loan B, 07/12/24(o)			2,629		2,329,820
Clear Channel Outdoor Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 4.49%, 08/21/26			37,630		31,608,986
Intelsat Jackson Holdings SA, Term Loan:
(LIBOR USD 3 Month + 3.75%), 5.68%, 11/27/23			4,956		4,516,155
(LIBOR USD 6 Month + 4.50%), 6.43%, 01/02/24			15,189		13,882,601
6.63%, 01/02/24(p)			84,234		77,706,011
Learfield Communications LLC, Term Loan, (LIBOR USD 1 Month + 3.25%), 4.25%, 12/01/23			3,955		2,584,082
Promotora de Informaciones SA, Term Loan, (EURIBOR 1 Month + 4.00%), 4.00%, 12/31/22	EUR		450		397,233
Terrier Media Buyer, Inc., Term Loan, 12/17/26(o)	USD		7,117		6,280,634
Xplornet Communications, Inc., Term Loan, (LIBOR USD 3 Month + 4.00%), 5.45%, 09/09/21(f)			8,745		8,394,919
					147,700,441
Oil, Gas & Consumable Fuels — 0.2%
California Resources Corp., Term Loan, (LIBOR USD 3 Month + 10.38%), 11.99%, 12/31/21			24,018		1,132,186
Chesapeake Energy Corp., Term Loan, (LIBOR USD 1 Month + 8.00%), 9.00%, 06/24/24			70,528		27,153,280
CNX Resources Corp., Term Loan, (LIBOR USD 1 Month + 4.50%), 5.49%, 11/28/22			7,183		4,669,008
					32,954,474
Pharmaceuticals — 0.2%
Bausch Health Cos., Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 3.61%, 06/02/25			8,383		7,932,268
Endo Pharmaceuticals, Inc., Term Loan B, (LIBOR USD 1 Month + 4.25%), 5.25%, 04/29/24			12,250		10,933,172
Jaguar Holding Co. I, Term Loan, 08/18/22(o)			10,996		10,466,011
					29,331,451
Professional Services — 0.1%
Dun & Bradstreet Corp. (The), 1st Lien Term Loan B, 02/06/26(f)(o)			19,058		17,081,091
Road & Rail — 0.0%
Uber Technologies, Inc., Term Loan:
(LIBOR USD 1 Month + 3.50%), 4.49%, 07/13/23			3,473		3,222,951
03/14/25(o)			3,500		3,231,616
					6,454,567
Software — 0.8%
Castle US Holding Corp., Term Loan, (LIBOR USD 1 Month + 3.75%), 4.74%, 01/29/27(f).			11,351		9,002,819
Infor US, Inc., Term Loan, 02/01/22(o)			6,278		6,017,363
Informatica LLC, Term Loan: 7.13%, 02/25/25(f)(p)			23,229		20,441,520

CONSOLIDATED SCHEDULESOF INVESTMENTS 61

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security			Par (000)		Value
Software (continued)
(LIBOR USD 1 Month + 3.25%), 4.24%, 02/25/27		USD		10,782	$	9,290,526
Kronos, Inc., 1st Lien Term Loan B, 11/01/23(o)				2,936		2,664,593
Kronos, Inc., 2nd Lien Term Loan B, (LIBOR USD 3 Month + 8.25%), 10.01%, 11/01/24 .				35,285		32,321,032
Refinitiv US Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 4.24%, 10/01/25				10,060		9,615,230
RP Crown Parent LLC, 1st Lien Term Loan, 10/12/23(f)(o)				1,858		1,764,951
SS&C Technologies Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 2.74%, 04/16/25				1,800		1,678,108
TIBCO Software, Inc., 1st Lien Term Loan, 06/30/26(f)(o)				20,496		19,266,357
TIBCO Software, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 8.24%, 03/03/28(f)				9,890		9,197,700
Ultimate Software Group, Inc. (The), 1st Lien Term Loan, 05/04/26(o)				5,461		5,069,315
						126,329,514
Specialty Retail — 0.1%
PetSmart, Inc., Term Loan, 03/11/22(o)				24,579		23,506,707
Wireless Telecommunication Services — 0.1%
Digicel International Finance Ltd., Term Loan, (LIBOR USD 3 Month + 3.25%), 4.87%, 05/27/24				16,055		12,422,400
Sprint Communications, Inc., Term Loan, 02/02/24(f)(o)				9,076		9,007,730
						21,430,130
Total Floating Rate Loan Interests — 8.3% (Cost: $1,577,803,719)					1,285,790,029
Foreign Agency Obligations — 0.0%
France — 0.0%
Electricite de France SA(a)(l):
(EUR Swap Annual 6 Year + 3.44%), 4.00%		EUR		4,400		4,714,311
(GBP Swap 13 Year + 3.96%), 6.00%		GBP		500		598,568
(EUR Swap Annual 5 Year + 3.20%), 3.00%		EUR		400		410,273
						5,723,152
Italy — 0.0%
Banca Monte dei Paschi di Siena SpA, 2.63%, 04/28/25				2,550		2,334,209
Total Foreign Agency Obligations — 0.0% (Cost: $9,192,296)						8,057,361
	Shares
Investment Companies — 5.0%
iShares 0-5 Year High Yield Corporate Bond ETF*				1,000,000		40,870,000
iShares Broad USD High Yield Corporate Bond ETF(g)*				2,118,695		75,213,672
iShares iBoxx $ High Yield Corporate Bond ETF(g)*				3,650,000		281,305,500
iShares iBoxx $ Investment Grade Corporate Bond ETF*				1,500,000		185,265,000
SPDR Bloomberg Barclays High Yield Bond ETF(g)				1,976,093		187,215,051
Total Investment Companies — 5.0% (Cost: $752,325,595)						769,869,223

Security	Beneficial Interest (000)			Value
Other Interests — 0.0%(q)
Auto Components — 0.0%
Lear Corp., Escrow(e)(f)(m)		USD	15,314	$	2
Capital Markets — 0.0%
Lehman Brothers Holdings Capital Trust Escrow Bonds(e)(m)			11,550		121,275
Lehman Brothers Holdings Capital Trust VII Escrow Bonds			5,500		57,750
Lehman Brothers Holdings Capital Trust VII Escrow Bonds			1,000		10,500
Lehman Brothers Holdings, Inc.(e)(m)			5,675		59,587
					249,112
Independent Power and Renewable Electricity Producers — 0.0%(e)(f)(m)
Mirant America Corp., Escrow			1,864		—
Mirant America Corp., Escrow(g)			3,270		1
					1
Media — 0.0%
Adelphia Communications Corp., Escrow(e)(f)(m)			325		—
Total Other Interests — 0.0%					249,115
Preferred Securities — 1.6%
	Par (000)
Capital Trusts — 1.6%
Banks — 1.6%(k)(l)
Bank of America Corp.:
Series X, 6.25%			17,568		17,831,520
Series Z, 6.50%			14,316		15,103,380
Series AA, 6.10%			5,669		5,725,690
Series DD, 6.30%			4,245		4,457,250
CIT Group, Inc., Series A, 5.80%			14,850		12,919,500
Citigroup, Inc., Series V, 4.70%			32,705		28,015,103
JPMorgan Chase & Co.:
Series I, 5.24%			10,460		9,338,270
Series Z, 5.30%			770		710,248
Series V, 5.23%			17,297		15,013,796
Series S, 6.75%			11,855		12,388,475
Series FF, 5.00%			56,405		52,977,832
Series X, 6.10%			5,667		5,774,673
Series HH, 4.60%			29,905		26,172,856
Wells Fargo & Co., Series U, 5.87%			37,830		38,397,450
					244,826,043
Capital Markets — 0.0%
Morgan Stanley, Series H, 5.44%(k)(l)			6,961		5,864,643
Entertainment — 0.0%
NBCUniversal Enterprise, Inc., 5.25%(b)(l)			2,827		2,827,000
Total Capital Trusts — 1.6% (Cost: $273,605,730)					253,517,686

62 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security	Shares		Value
Preferred Stocks — 0.0%
Banks — 0.0%
CF-B L2 (D), LLC (Acquired 4/08/15 - 12/15/15, cost $3,532,445)(l)(r)		3,610,706	$	1,459,808
Total Preferred Stocks — 0.0% (Cost: $3,532,445)				1,459,808
Total Preferred Securities — 1.6% (Cost: $277,138,175)				254,977,494
Total Long-Term Investments — 95.0% (Cost: $16,302,117,944)				14,749,216,535
Short-Term Securities — 9.2%(s)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.21%*		1,208,143,073		1,208,143,073
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 0.27%		68,409,092		68,409,092

Security	Shares		Value
Short-Term Securities (continued)
SL Liquidity Series, LLC, Money Market Series, 0.88%(t)*		148,110,542	$	148,066,109
Total Short-Term Securities — 9.2% (Cost: $1,424,627,073)				1,424,618,274
Total Options Purchased — 0.1% (Cost: $22,560,949)				16,662,514
Total Investments Before Options Written — 104.3% (Cost: $17,749,305,966)				16,190,497,323
Total Options Written — (0.2)% (Premium Received — $9,850,407)				(32,087,424	)
Total Investments Net of Options Written — 104.1% (Cost: $17,739,455,559)				16,158,409,899
Liabilities in Excess of Other Assets — (4.1)%				(640,156,720	)
Net Assets — 100.0%			$	15,518,253,179

^(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)  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.

^(e)  Non-income producing security.

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

^(g)  Security, or a portion of the security, is on loan.

^(h)  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.

⁽ⁱ⁾  All or a portion of the security has been pledged as collateral in connection with outstanding borrowed bonds.

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

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

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

⁽ⁿ⁾  Convertible security.

^(o)  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.

^(p)  Fixed rate.

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

^(r)  Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $1,459,808, representing less than 0.05% of its net assets as of period end, and an original cost of $3,532,445.

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

^(t)  Security was purchased with the cash collateral from loaned securities.

* Investments in issuers considered to be an affiliate/affiliates of the Fund during the six months ended March 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Shares Held at 09/30/19	Shares Purchased	Shares Sold		Shares Held at 03/31/20		Value at 03/31/20		Income			Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class(b)	380,229,234	827,913,839	—		1,208,143,073	$	1,208,143,073	$	2,408,758		$	532		$	—
SL Liquidity Series, LLC, Money Market Series(b)	6,690,336	141,420,206	—		148,110,542		148,066,109		238,068	(c)		54,310			(8,910	)
iShares 0-5 Year High Yield Corporate Bond ETF	1,500,000	4,490,000	(4,990,000	)	1,000,000		40,870,000		402,943			(1,086,240	)		(240,000	)
iShares Broad USD High Yield Corporate Bond ETF	1,687,800	4,033,695	(3,602,800	)	2,118,695		75,213,672		1,817,292			(721,829	)		(487,841	)
iShares iBoxx $ High Yield Corporate Bond ETF	1,784,036	27,543,148	(25,677,184	)	3,650,000		281,305,500		4,609,870			(16,638,574	)		2,442,134

CONSOLIDATED SCHEDULESOF INVESTMENTS 63

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio     

Affiliated Issuer	Shares Held at 09/30/19	Shares Purchased	Shares Sold	Shares Held at 03/31/20		Value at 03/31/20		Income		Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
iShares iBoxx $ Investment Grade Corporate Bond ETF	—	1,500,000	—	1,500,000	$	185,265,000	$	—	$	—		$	5,188,800
					$	1,938,863,354	$	9,476,931	$	(18,391,801	)	$	6,894,183

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

^(b)  Represents net shares purchased (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 industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

64 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio     

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Short Contracts
U.S. Treasury Long Bond		560		06/19/20	$	100,275	$	(34,618)
U.S. Treasury Ultra Bond		1,209		06/19/20		268,247		652,695
							$	618,077

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation     (Depreciation)
AUD	5,246,000	USD	3,164,665	Deutsche Bank AG		04/03/20	$	62,164
AUD	5,246,000	USD	3,215,304	Morgan Stanley & Co. International plc		04/03/20		11,526
CAD	16,179,000	USD	11,415,037	Deutsche Bank AG		04/03/20		81,562
EUR	10,233,000	USD	11,224,250	Deutsche Bank AG		04/03/20		62,047
EUR	10,100,000	USD	11,049,169	State Street Bank and Trust Co.		04/03/20		90,439
GBP	32,124,000	USD	39,835,045	JPMorgan Chase Bank NA		04/03/20		66,681
USD	6,905,075	AUD	10,492,000	Morgan Stanley & Co. International plc		04/03/20		451,416
USD	12,119,546	CAD	16,180,000	HSBC Bank plc		04/03/20		622,236
USD	42,963,771	GBP	33,306,000	Barclays Bank plc		04/03/20		1,593,864
USD	453,423,020	EUR	410,410,000	UBS AG		05/05/20		172,782
USD	80,808	GBP	65,000	State Street Bank and Trust Co.		05/05/20		11
								3,214,728
EUR	410,410,000	USD	452,805,353	UBS AG		04/03/20		(151,263)
USD	478,578,288	EUR	435,271,000	UBS AG		04/03/20		(1,495,780)
USD	3,164,943	AUD	5,246,000	Deutsche Bank AG		05/05/20		(62,454)
USD	3,215,801	AUD	5,246,000	Morgan Stanley & Co. International plc		05/05/20		(11,596)
USD	11,419,372	CAD	16,179,000	Deutsche Bank AG		05/05/20		(81,663)
USD	11,238,177	EUR	10,233,000	Deutsche Bank AG		05/05/20		(62,984)
USD	11,063,604	EUR	10,100,000	State Street Bank and Trust Co.		05/05/20		(90,675)
USD	42,106,652	GBP	33,935,000	JPMorgan Chase Bank NA		05/05/20		(75,435)
								(2,031,850)
Net Unrealized Appreciation							$	1,182,878

Exchange-Traded Options Purchased

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
S&P 500 Index		35		09/18/20	USD	3,400.00	USD	9,046	$	13,825
Put
S&P 500 Index		85		04/17/20	USD	2,875.00	USD	21,969		2,636,275
SPDR S&P 500 ETF Trust		7,862		04/17/20	USD	250.00	USD	202,643		6,666,976
SPDR S&P 500 ETF Trust		7,677		04/29/20	USD	245.00	USD	197,875		7,285,473
										16,588,724
									$	16,602,549

CONSOLIDATED SCHEDULESOF INVESTMENTS 65

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio     

OTC Credit Default Swaptions Purchased

Paid by the Fund

Received by the Fund

Description

Rate/Reference

Frequency

Rate/Reference

Frequency

Counterparty

Expiration Date

Exercise Price

Notional Amount (000) (a)

Value

Call

Bought Protection on 5-Year Credit Default Swap

5.00%

Quarterly

CDX.NA.HY.33.V2

Quarterly

Goldman Sachs International

04/15/20

USD

106.00

USD

300,000

$

12,510

Bought Protection on 5-Year Credit Default Swap

5.00

Quarterly

CDX.NA.HY.33.V2

Quarterly

Goldman Sachs International

04/15/20

USD

107.50

USD

360,705

3,420

Bought Protection on 5-Year Credit Default Swap

5.00

Quarterly

CDX.NA.HY.33.V2

Quarterly

Morgan Stanley & Co. International plc

04/15/20

USD

107.50

USD

355,295

3,370

$

19,300

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

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Put

10-Year Interest Rate Swap(a)

2.20

%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

06/22/20

2.20

%

USD

636,680

$

40,665

^(a)  Forward settling swaption.

Exchange-Traded Options Written

Description	Number of Contracts		Expiration Date			Exercise Price			Notional Amount (000)		Value
Call
S&P 500 Index		35		09/18/20	USD		3,500.00	USD		9,046	$	(8,400)
Put
S&P 500 Index		85		04/17/20	USD		2,950.00	USD		21,969		(3,254,650)
SPDR S&P 500 ETF Trust		7,862		04/17/20	USD		230.00	USD		202,643		(3,199,834)
SPDR S&P 500 ETF Trust		7,677		04/29/20	USD		225.00	USD		197,875		(3,976,686)
												(10,431,170)
											$	(10,439,570)

66 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio     

OTC Credit Default Swaptions Written

Paid by the Fund

Received by the Fund

Description

Rate/Reference

Frequency

Rate/Reference

Frequency

Counterparty

Expiration Date

Credit Rating (a)

Exercise Price

Notional Amount (000) (b)

Value

Put

Sold Protection on 5-Year Credit Default Swap

CDX.NA.HY.33.V2

Quarterly

5.00%

Quarterly

Goldman Sachs International

04/15/20

NR

USD

100.00

USD

300,000

$

(21,639,845)

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

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

OTC Interest Rate Swaptions Written

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Put

10-Year Interest Rate Swap(a)

2.70

%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

06/22/20

2.70

%

USD

636,680

$

(8,009)

^(a)  Forward settling swaption.

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.EUR. CROSSOVER.32.V1	5.00	%	Quarterly	12/20/24	CCC+		EUR	11,180		$	(232,124)	$	667,098	$	(899,222)
CDX.NA.HY.34.V1	5.00		Quarterly	06/20/25	B-		USD	1,127,394			(70,499,705)		(45,962,033)		(24,537,672)
										$	(70,731,829)	$	(45,294,935)	$	(25,436,894)

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

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

OTC Credit Default 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)
Altice Finco SA		5.00	%		Quarterly	Credit Suisse International		12/20/24	EUR	2,000	$	(17,861)	$	(258,326)	$	240,465
Altice Finco SA		5.00			Quarterly	Credit Suisse International		12/20/24	EUR	1,490		(13,309)		(158,547)		145,238
											$	(31,170)	$	(416,873)	$	385,703

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

Barclays Bank plc

06/20/23

B

EUR

800

$

(141,617)

$

(69,686)

$

(71,931)

Casino Guichard Perrachon SA

1.00

Quarterly

Barclays Bank plc

06/20/23

NR

EUR

200

(35,385)

(17,228)

(18,157)

CONSOLIDATED SCHEDULESOF INVESTMENTS 67

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio     

OTC Credit Default Swaps — Sell Protection (continued)

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	Citibank NA	06/20/23	B		EUR	1,044		$	(184,782	)	$	(101,510)	$	(83,272	)
Casino Guichard Perrachon SA	1.00		Quarterly	JPMorgan Chase Bank NA	06/20/23	B		EUR	10			(1,769)			(669)		(1,100)
CenturyLink, Inc.	1.00		Quarterly	Barclays Bank plc	06/20/23	NR		USD	20,000			(1,002,412)			(1,458,543)		456,131
Casino Guichard Perrachon SA	1.00		Quarterly	Goldman Sachs International	12/20/23	NR		EUR	210			(42,616)			(25,074)		(17,542)
CenturyLink, Inc.	1.00		Quarterly	Barclays Bank plc	12/20/23	NR		USD	5,176			(329,716)			(295,586)		(34,130)
Chesapeake Energy Corp.	5.00		Quarterly	Barclays Bank plc	12/20/23	CCC-		USD	7,878			(6,893,206)			54,986		(6,948,192)
Chesapeake Energy Corp.	5.00		Quarterly	Barclays Bank plc	12/20/23	CCC-		USD	3,825			(3,346,853)			5,448		(3,352,301)
Altice Luxembourg SA	5.00		Quarterly	Citibank NA	12/20/24	NR		EUR	400			(8,951)			44,245		(53,196)
Garfunkelux Holdco 2 SA	5.00		Quarterly	Credit Suisse International	12/20/24	B-		EUR	910			(254,516)			53,216		(307,732)
Garfunkelux Holdco 2 SA	5.00		Quarterly	Credit Suisse International	12/20/24	B-		EUR	460			(128,656)			(5,820)		(122,836)
Garfunkelux Holdco 2 SA	5.00		Quarterly	Credit Suisse International	12/20/24	B-		EUR	1,420			(397,155)			—		(397,155)
Garfunkelux Holdco 2 SA	5.00		Quarterly	Credit Suisse International	12/20/24	B-		EUR	490			(137,047)			16,432		(153,479)
Intrum AB	5.00		Quarterly	Credit Suisse International	12/20/24	BB+		EUR	920			(202,703)			29,053		(231,756)
CenturyLink, Inc.	1.00		Quarterly	Barclays Bank plc	06/20/25	NR		USD	3,720			(404,591)			(515,566)		110,975
Tesco plc	1.00		Quarterly	Barclays Bank plc	12/20/25	BBB-		EUR	1,500			(19,453)			(36,670)		17,217
Tesco plc	1.00		Quarterly	Morgan Stanley & Co. International plc	12/20/28	BBB-		EUR	2,930			(180,644)			(260,154)		79,510
											$	(13,712,072)		$	(2,583,126)	$	(11,128,946)

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

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

OTC Total Return Swaps

Paid by the Fund

Received by the Fund

Rate (Amount)/ Reference

Frequency

Rate/Reference

Frequency

Counterparty

Termination Date

Notional Amount (000)

Value

Upfront Premium Paid (Received)

Unrealized Appreciation (Depreciation)

3 month LIBOR

Quarterly

iBoxx USD Liquid High Yield Total Return Index

At Termination

Goldman Sachs International

06/20/20

USD

135,716

$

1,768,419

$

(544,828

)

$

2,313,247

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		1.45	%

68 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio     

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)	$	667,098	$	(45,962,033)	$	—	$	(25,436,894)	$	—
OTC Swaps		203,380		(3,748,207)		3,362,783		(11,792,779)		—
Options Written		N/A		N/A		674,267		(22,911,284)		(32,087,424)

^(a)  Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Consolidated 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
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	652,695	$	—	$	652,695
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		3,214,728		—		—		3,214,728
Options purchased
Investments at value — unaffiliated(b)		—		19,300		16,602,549		—		40,665		—		16,662,514
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		1,252,916		—		—		2,313,247		—		3,566,163
	$	—	$	1,272,216	$	16,602,549	$	3,214,728	$	3,006,607	$	—	$	24,096,100
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		34,618		—		34,618
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		2,031,850		—		—		2,031,850
Options written
Options written at value		—		21,639,845		10,439,570		—		8,009		—		32,087,424
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		25,436,894		—		—		—		—		25,436,894
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		14,996,158		—		—		544,828		—		15,540,986
	$	—	$	62,072,897	$	10,439,570	$	2,031,850	$	587,455	$	—	$	75,131,772

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Consolidated Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

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

For the six months ended March 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts			Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	(6,524,943	)	$	—	$	(578,264	)	$	—	$	(7,103,207	)
Forward foreign currency exchange contracts		—		—			—			2,556,186		—			—		2,556,186
Options purchased(a)		—		438,750			1,981,864			—		(1,719,938	)		—		700,676
Options written		—		(41,132,854	)		(1,385,365	)		—		—			—		(42,518,219	)
Swaps		—		(13,899,168	)		(20,614,909	)		—		(58,346,583	)		—		(92,860,660	)
	$	—	$	(54,593,272	)	$	(26,543,353	)	$	2,556,186	$	(60,644,785	)	$	—	$	(139,225,224	)

CONSOLIDATED SCHEDULESOF INVESTMENTS 69

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio     

	Commodity Contracts		Credit Contracts			Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			(17,880	)		—			594,940			—		577,060
Forward foreign currency exchange contracts		—		—			—			(3,059,315	)		—			—		(3,059,315	)
Options purchased(b)		—		(4,690,480	)		2,675,366			—			(3,855,817	)		—		(5,870,931	)
Options written		—		(20,006,345	)		(2,859,343	)		—			628,671			—		(22,237,017	)
Swaps		—		(35,283,499	)		1,599,787			—			2,373,957			—		(31,309,755	)
	$	—	$	(59,980,324	)	$	1,397,930		$	(3,059,315	)	$	(258,249	)	$	—	$	(61,899,958	)

^(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	$	827,506
Average notional value of contracts — short		190,977,257
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		805,571,961
Average amounts sold — in USD		266,354,412
Options:
Average value of option contracts purchased		8,301,275
Average value of option contracts written		5,219,785
Average notional value of swaption contracts purchased		1,419,870,000
Average notional value of swaption contracts written		786,680,000
Credit default swaps:
Average notional value — buy protection		3,197,231
Average notional value — sell protection		662,645,187
Total return swaps:
Average notional value		254,912,000

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	$	4,787,130		$	—
Forward foreign currency exchange contracts		3,214,728			2,031,850
Options(a)		16,662,514			32,087,424
Swaps — Centrally cleared		—			17,374,356
Swaps — OTC(b)		3,566,163			15,540,986
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	28,230,535		$	67,034,616
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(21,389,679	)		(27,813,926	)
Total derivative assets and liabilities subject to an MNA	$	6,840,856		$	39,220,690

^(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 Consolidated Schedule of Investments.

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

70 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield 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(b)		Net Amount of Derivative Assets(c)(d)
Bank of America NA	$	40,665	$	(8,009)	$	—	$	(32,656)	$	—
Barclays Bank plc		2,238,621		(2,238,621)		—		—		—
Citibank NA		44,245		(44,245)		—		—		—
Credit Suisse International		484,404		(484,404)		—		—		—
Deutsche Bank AG		205,773		(205,773)		—		—		—
Goldman Sachs International		2,329,177		(2,329,177)		—		—		—
HSBC Bank plc		622,236		—		—		—		622,236
JPMorgan Chase Bank NA		66,681		(66,681)		—		—		—
Morgan Stanley & Co. International plc		545,822		(271,750)		—		—		274,072
State Street Bank and Trust Co.		90,450		(90,450)		—		—		—
UBS AG		172,782		(172,782)		—		—		—
	$	6,840,856	$	(5,911,892)	$	—	$	(32,656)	$	896,308
Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset(a)		Non-cash Collateral Pledged		Cash Collateral Pledged(e)		Net Amount of Derivative Liabilities(d)(f)
Bank of America NA	$	8,009	$	(8,009)	$	—	$	—	$	—
Barclays Bank plc		12,817,990		(2,238,621)		—		(10,579,369)		—
Citibank NA		237,978		(44,245)		—		(193,733)		—
Credit Suisse International		1,635,651		(484,404)		—		(1,050,000)		101,247
Deutsche Bank AG		207,101		(205,773)		—		—		1,328
Goldman Sachs International		22,227,289		(2,329,177)		—		(17,760,000)		2,138,112
JPMorgan Chase Bank NA		77,204		(66,681)		—		(10,000)		523
Morgan Stanley & Co. International plc		271,750		(271,750)		—		—		—
State Street Bank and Trust Co.		90,675		(90,450)		—		—		225
UBS AG		1,647,043		(172,782)		—		—		1,474,261
	$	39,220,690	$	(5,911,892)	$	—	$	(29,593,102)	$	3,715,696

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

^(e)  Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

^(f)  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	$	—	$	42,826,208	$	—	$	42,826,208
Common Stocks:
Aerospace & Defense		2,213,274		—		—		2,213,274
Auto Components		—		—		20,170,448		20,170,448
Chemicals		44,414,858		—		—		44,414,858
Commercial Services & Supplies		—		—		3		3
Consumer Finance		—		200,751		—		200,751

CONSOLIDATED SCHEDULESOF INVESTMENTS 71

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio     

	Level 1		Level 2			Level 3		Total
Diversified Financial Services	$	—	$	4,496		$	1	$	4,497
Diversified Telecommunication Services		—		591,006			—		591,006
Energy Equipment & Services		—		22,009			—		22,009
Equity Real Estate Investment Trusts (REITs)		50,751,291		—			—		50,751,291
Life Sciences Tools & Services		1,177,455		—			—		1,177,455
Media		3,036,175		—			—		3,036,175
Metals & Mining		14,438,843		—			—		14,438,843
Oil, Gas & Consumable Fuels		—		—			1,495,947		1,495,947
Pharmaceuticals		18,990,228		—			—		18,990,228
Semiconductors & Semiconductor Equipment		6,941		—			—		6,941
Corporate Bonds(a)		—		12,229,933,379			—		12,229,933,379
Floating Rate Loan Interests:
Aerospace & Defense		—		8,193,517			—		8,193,517
Auto Components		—		—			12,889,576		12,889,576
Automobiles		—		3,309,466			—		3,309,466
Building Products		—		5,088,858			—		5,088,858
Capital Markets		—		4,664,475			—		4,664,475
Chemicals		—		4,849,624			57,846,188		62,695,812
Commercial Services & Supplies		—		80,179,953			6,007,603		86,187,556
Construction & Engineering		—		15,099,445			—		15,099,445
Construction Materials		—		4,810,620			—		4,810,620
Containers & Packaging		—		10,498,606			—		10,498,606
Diversified Consumer Services		—		14,514,915			—		14,514,915
Diversified Financial Services		—		20,191,254			7,632,995		27,824,249
Diversified Telecommunication Services		—		140,778,904			8,777,514		149,556,418
Energy Equipment & Services		—		20,338,472			38,773,558		59,112,030
Entertainment		—		239,207			—		239,207
Food Products		—		6,087,839			—		6,087,839
Health Care Equipment & Supplies		—		70,534,567			—		70,534,567
Health Care Providers & Services		—		49,533,738			25,180,608		74,714,346
Health Care Technology		—		—			30,145,851		30,145,851
Hotels, Restaurants & Leisure		—		6,845,963			—		6,845,963
Independent Power and Renewable Electricity Producers		—		—			799,166		799,166
Industrial Conglomerates		—		—			25,322,347		25,322,347
Insurance		—		66,006,100			—		66,006,100
IT Services		—		27,613,342			62,215,325		89,828,667
Machinery		—		46,032,058			—		46,032,058
Media		—		139,305,522			8,394,919		147,700,441
Oil, Gas & Consumable Fuels		—		32,954,474			—		32,954,474
Pharmaceuticals		—		29,331,451			—		29,331,451
Professional Services		—		—			17,081,091		17,081,091
Road & Rail		—		6,454,567			—		6,454,567
Software		—		66,656,167			59,673,347		126,329,514
Specialty Retail		—		23,506,707			—		23,506,707
Wireless Telecommunication Services		—		12,422,400			9,007,730		21,430,130
Foreign Agency Obligations(a)		—		8,057,361			—		8,057,361
Investment Companies		769,869,223		—			—		769,869,223
Other Interests		—		249,112			3		249,115
Preferred Securities(a)		—		254,977,494			—		254,977,494
Short-Term Securities		1,276,552,165		—			—		1,276,552,165
Options Purchased:
Credit contracts		—		19,300			—		19,300
Equity contracts		16,602,549		—			—		16,602,549
Interest rate contracts		—		40,665			—		40,665
Subtotal	$	2,198,053,002	$	13,452,963,992		$	391,414,220	$	16,042,431,214
Investments valued at NAV(b)									148,066,109
Total Investments								$	16,190,497,323
Derivative Financial Instruments(c)
Assets:
Credit contracts	$	—	$	1,049,536		$	—	$	1,049,536
Foreign currency exchange contracts		—		3,214,728			—		3,214,728
Interest rate contracts		652,695		2,313,247			—		2,965,942
Liabilities:
Credit contracts		—		(58,869,518	)		—		(58,869,518	)

72 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock High Yield Bond Portfolio     

	Level 1			Level 2			Level 3		Total
Equity contracts	$	(10,439,570	)	$	—		$	—	$	(10,439,570	)
Foreign currency exchange contracts		—			(2,031,850	)		—		(2,031,850	)
Interest rate contracts		(34,618	)		(8,009	)		—		(42,627	)
	$	(9,821,493	)	$	(54,331,866	)	$	—	$	(64,153,359	)

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

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

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

	Common Stocks		Floating Rate Loan Interests		Other Interests		Total
Investments:
Assets:
Opening balance, as of September 30, 2019	$	34,293,121	$	68,866,100	$	3	$	103,159,224
Transfers into level 3(a)		—		255,694,968		—		255,694,968
Transfers out of level 3		—		(15,719,096)		—		(15,719,096)
Accrued discounts/premiums		—		1,507,299		—		1,507,299
Net realized gain (loss)		—		(364,651)		2,500		(362,151)
Net change in unrealized depreciation(b)(c)		(12,626,722)		(37,734,234)		—		(50,360,956)
Purchases		—		152,831,974		—		152,831,974
Sales		—		(55,334,542)		(2,500)		(55,337,042)
Closing balance, as of March 31, 2020	$	21,666,399	$	369,747,818	$	3	$	391,414,220
Net change in unrealized depreciation on investments still held at March 31, 2020(c)	$	(12,626,722)	$	(37,694,547)	$	—	$	(50,321,269)

^(a)  As of September 30, 2019, the Fund used observable inputs in determining the value of certain investments. As of March 31, 2020, the Fund used significant unobservable inputs in determining the value of the same investments. As a result, investments at beginning of period value were transferred from Level 2 to Level 3 in the disclosure hierarchy.

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

^(c)  Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at March 31, 2020 is generally due to investments no longer held or categorized as Level 3 at period end.

See notes to financial statements.

CONSOLIDATED SCHEDULESOF INVESTMENTS 73

Schedule of Investments  (unaudited)  March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 22.8%
Ajax Mortgage Loan Trust, Series 2019-G, Class A, 3.00%, 09/25/59(a)(b)	USD		7,867	$	6,820,055
Allegro CLO II-S Ltd., Series 2014-1RA, Class A1, (LIBOR USD 3 Month + 1.08%), 2.90%, 10/21/28(b)(c)			5,600		5,381,810
ALM XVII Ltd., Series 2015-17A, Class A1AR, (LIBOR USD 3 Month + 0.93%), 2.76%, 01/15/28(b) (c)			3,680		3,456,253
American Express Credit Account Master Trust, Series 2017-7, Class A, 2.35%, 05/15/25			9,810		9,965,283
AmeriCredit Automobile Receivables Trust:
Series 2019-1, Class A3, 2.97%, 11/20/23			11,160		11,222,382
Series 2019-3, Class A3, 2.06%, 04/18/24			26,850		27,248,642
AMMC CLO XIII Ltd., Series 2013-13A, Class A1LR, (LIBOR USD 3 Month + 1.26%), 3.06%, 07/24/29(b)(c)			4,000		3,811,618
Anchorage Capital CLO 13 LLC, Series 2019-13A, Class A, (LIBOR USD 3 Month + 1.47%), 3.30%, 04/15/32(b)(c)			27,170		25,273,330
Anchorage Capital CLO 7 Ltd., Series 2015-7A, Class AR2, (LIBOR USD 3 Month + 1.09%), 2.11%, 01/28/31(b)(c)			14,523		13,696,152
Ares XXIX CLO Ltd., Series 2014-1A, Class A1R, (LIBOR USD 3 Month + 1.19%), 3.03%, 04/17/26(b)(c)			4,909		4,881,636
ARI Fleet Lease Trust, Series 2020-A, Class B, 2.06%, 11/15/28(b)(d)			1,470		1,495,872
Atlas Senior Loan Fund III Ltd., Series 2013-1A, Class AR, (LIBOR USD 3 Month + 0.83%), 2.52%, 11/17/27(b)(c)			5,345		5,191,453
Atrium XII, Series 12A, Class AR, (LIBOR USD 3 Month + 0.83%), 2.63%, 04/22/27(b)(c)			9,700		9,502,914
Avery Point IV CLO Ltd., Series 2014-1A, Class AR, (LIBOR USD 3 Month + 1.10%), 2.89%, 04/25/26(b)(c)			1,306		1,296,428
Avery Point V CLO Ltd., Series 2014-5A, Class AR, (LIBOR USD 3 Month + 0.98%), 2.82%, 07/17/26(b)(c)			1,382		1,349,576
Ballyrock CLO Ltd., Series 2016-1A, Class CR, (LIBOR USD 3 Month + 2.40%), 4.23%, 10/15/28(b)(c)			3,000		2,473,052
Benefit Street Partners CLO II Ltd., Series 2013-IIA, Class A2R, (LIBOR USD 3 Month + 1.75%), 3.58%, 07/15/29(b)(c)			8,355		7,645,024
Benefit Street Partners CLO V-B Ltd., Series 2018-5BA, Class A1A, (LIBOR USD 3 Month + 1.09%), 2.91%, 04/20/31(b)(c)			2,230		2,069,192
BlueMountain CLO Ltd., Series 2012-2A, Class AR2, (LIBOR USD 3 Month + 1.05%), 2.74%, 11/20/28(b)(c)			13,440		12,933,480
BMW Floorplan Master Owner Trust, Series 2018-1, Class A1, 3.15%, 05/15/23(b)			16,230		16,237,515
BSPRT Issuer Ltd., Series 2018-FL3, Class A, (LIBOR USD 1 Month + 1.05%), 1.75%, 03/15/28(b) (c)			17,287		16,245,518
Capital One Multi-Asset Execution Trust, Series 2019-A2, Class A2, 1.72%, 08/15/24			28,310		28,582,818
Carlyle Global Market Strategies CLO Ltd., Series 2014-5A, Class A1RR, (LIBOR USD 3 Month + 1.14%), 2.97%, 07/15/31(b)(c)			6,000		5,561,099
CarMax Auto Owner Trust, Series 2019-3, Class A3, 2.18%, 08/15/24			24,830		24,922,055
Catamaran CLO Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month + 0.90%), 2.70%, 04/22/27(b)(c)			4,040		3,918,893

Security		Par (000)		Value
Asset-Backed Securities (continued)
Cedar Funding VI CLO Ltd., Series 2016-6A, Class AR, (LIBOR USD 3 Month + 1.09%), 2.91%, 10/20/28(b)(c)	USD		26,890	$	25,788,002
Chesapeake Funding II LLC(b):
Series 2018-1A, Class A1, 3.04%, 04/15/30			10,161		10,062,035
Series 2019-1A, Class B, 3.11%, 04/15/31			5,230		5,213,789
Series 2019-1A, Class C, 3.36%, 04/15/31			4,930		4,920,810
Series 2019-1A, Class D, 3.80%, 04/15/31			6,630		6,617,016
CIFC Funding Ltd.(b)(c):
Series 2014-4RA, Class A1A, (LIBOR USD 3 Month + 1.13%), 2.97%, 10/17/30			17,860		16,947,475
Series 2015-2A, Class AR2, (LIBOR USD 3 Month + 1.01%), 2.39%, 04/15/30(d)			27,350		27,350,000
Credit Acceptance Auto Loan Trust(b):
Series 2018-1A, Class A, 3.01%, 02/16/27			21,472		21,475,250
Series 2018-2A, Class A, 3.47%, 05/17/27			35,490		35,165,391
Series 2019-1A, Class A, 3.33%, 02/15/28			25,440		25,249,650
Series 2019-3A, Class A, 2.38%, 11/15/28			13,620		13,176,830
Series 2020-1A, Class A, 2.01%, 02/15/29			26,840		24,900,493
Drive Auto Receivables Trust:
Series 2019-4, Class A3, 2.16%, 05/15/23			7,930		7,925,911
Series 2020-1, Class A3, 2.02%, 11/15/23			9,220		9,154,513
Dryden XXV Senior Loan Fund, Series 2012-25A, Class ARR, (LIBOR USD 3 Month + 0.90%), 2.73%, 10/15/27(b)(c)			30,051		28,291,623
Dryden XXVI Senior Loan Fund, Series 2013-26A, Class AR, (LIBOR USD 3 Month + 0.90%), 2.73%, 04/15/29(b)(c)			13,800		13,085,487
EDvestinU Private Education Loan Issue No. 1 LLC, Series 2019-A, Class A, 3.58%, 11/25/38(b)(e)			9,687		9,998,960
Enterprise Fleet Financing LLC(b):
Series 2017-1, Class A2, 2.13%, 07/20/22			101		100,951
Series 2017-1, Class A3, 2.60%, 07/20/22			4,260		4,247,780
Series 2018-1, Class A2, 2.87%, 10/20/23			11,020		10,964,980
Series 2019-1, Class A2, 2.98%, 10/20/24			19,681		19,704,521
Series 2019-2, Class A3, 2.38%, 02/20/25			14,800		14,673,993
Ford Credit Floorplan Master Owner Trust A:
Series 2019-2, Class A, 3.06%, 04/15/26			31,498		30,321,572
Series 2019-4, Class A, 2.44%, 09/15/26			41,920		41,918,495
GMF Floorplan Owner Revolving Trust, Series 2019-1, Class A, 2.70%, 04/15/24(b)			18,745		18,668,022
GoldenTree Loan Opportunities X Ltd., Series 2015-10A, Class AR, (LIBOR USD 3 Month + 1.12%), 2.94%, 07/20/31(b)(c)			5,275		4,897,545
GoldenTree Loan Opportunities XI Ltd., Series 2015-11A, Class AR2, (LIBOR USD 3 Month + 1.07%), 2.89%, 01/18/31(b)(c)			3,815		3,550,181
Halcyon Loan Advisors Funding Ltd., Series 2015-2A, Class AR, (LIBOR USD 3 Month + 1.08%), 2.87%, 07/25/27(b)(c)			15,340		14,862,294
Harley-Davidson Motorcycle Trust, Series 2020-A, Class A3, 1.87%, 10/15/24			16,900		16,519,535
Hyundai Auto Lease Securitization Trust, Series 2019-A, Class A2, 2.92%, 07/15/21(b)			13,315		13,278,341
KKR CLO Ltd., Series 16, Class A2R, (LIBOR USD 3 Month + 1.80%), 3.62%, 01/20/29(b)(c)			10,610		9,192,179
Lendmark Funding Trust(b):
Series 2018-1A, Class A, 3.81%, 12/21/26			18,440		17,341,531
Series 2019-2A, Class A, 2.78%, 04/20/28			6,170		5,367,647
Litigation Fee Residual Funding LLC, Series 2015-1, Class A, 4.00%, 10/30/27(d)			6,133		6,115,411
LoanCore Issuer Ltd., Series 2018-CRE1, Class A, (LIBOR USD 1 Month + 1.13%), 1.83%, 05/15/28(b)(c)			12,180		11,456,346

74 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Madison Park Funding XII Ltd., Series 2014-12A, Class AR, (LIBOR USD 3 Month + 1.26%), 3.08%, 07/20/26(b)(c)	USD		1,760	$	1,748,110
Madison Park Funding XIX Ltd., Series 2015-19A, Class A2R2, (LIBOR USD 3 Month + 1.50%), 2.37%, 01/22/28(b)(c)(d)			15,900		15,900,000
Marathon CRE Ltd., Series 2018-FL1, Class A, (LIBOR USD 1 Month + 1.15%), 1.85%, 06/15/28(b)(c)			5,690		5,133,259
Mariner Finance Issuance Trust, Series 2019- AA, Class A, 2.96%, 07/20/32(b)			6,804		5,733,925
Mercedes-Benz Master Owner Trust, Series 2019-BA, Class A, 2.61%, 05/15/24(b)			28,750		28,574,513
Mill City Mortgage Loan Trust, Series 2016-1, Class A1, 2.50%, 04/25/57(b)(c)(e)			10,433		10,344,967
Mill City Solar Loan Ltd., Series 2019-2GS, Class A, 3.69%, 07/20/43(b)			15,269		14,432,576
Mosaic Solar Loan Trust, Series 2019-2A, Class A, 2.88%, 09/20/40(b)			514		495,000
Navient Private Education Loan Trust, Series 2014-CTA, Class A, (LIBOR USD 1 Month + 0.70%), 1.40%, 09/16/24(b)(c)			17		16,911
Navient Private Education Refi Loan Trust(b):
Series 2019-A, Class A1, 3.03%, 01/15/43			2,058		2,057,243
Series 2019-CA, Class A2, 3.13%, 02/15/68			8,545		8,412,286
Series 2019-EA, Class A2B, (LIBOR USD 1 Month + 0.92%), 1.62%, 05/15/68(c)			16,440		15,889,857
Series 2019-FA, Class A1, 2.18%, 08/15/68			13,552		13,531,691
Series 2019-GA, Class A, 2.40%, 10/15/68			22,221		22,387,816
Series 2020-A, Class A2B, (LIBOR USD 1 Month + 0.90%), 1.60%, 11/15/68(c)			1,480		1,417,630
Series 2020-BA, Class A1, 1.80%, 01/15/69			33,495		33,381,837
Navient Student Loan Trust(b):
Series 2018-EA, Class A2, 4.00%, 12/15/59			2,872		2,971,481
Series 2019-BA, Class A2A, 3.39%, 12/15/59			7,880		8,235,455
Neuberger Berman CLO XX Ltd., Series 2015-20A, Class AR, (LIBOR USD 3 Month + 0.80%), 2.63%, 01/15/28(b)(c)			7,765		7,310,130
Nissan Auto Receivables Owner Trust, Series 2019-A, Class A4, 3.00%, 09/15/25			6,590		6,597,631
Nissan Master Owner Trust Receivables, Series 2019-A, Class A, (LIBOR USD 1 Month + 0.56%), 1.26%, 02/15/24(c)			26,180		25,136,897
NLY Commercial Mortgage Trust, Series 2019-FL2, Class A, (LIBOR USD 1 Month + 1.30%), 2.00%, 02/15/36(b)(c)			5,121		4,638,517
OCP CLO Ltd., Series 2015-8A, Class A1R, (LIBOR USD 3 Month + 0.85%), 2.69%, 04/17/27(b)(c)			1,386		1,369,446
Octagon Investment Partners 30 Ltd., Series 2017-1A, Class B, (LIBOR USD 3 Month + 2.35%), 4.17%, 03/17/30(b)(c)			4,200		3,431,934
OFSI Fund VI Ltd., Series 2014-6A, Class BR, (LIBOR USD 3 Month + 1.50%), 3.33%, 03/20/25(b)(c)			6,345		5,336,240
OneMain Direct Auto Receivables Trust, Series 2018-1A, Class A, 3.43%, 12/16/24(b)			22,405		22,298,971
Onemain Financial Issuance Trust, Series 2018-1A, Class A, 3.30%, 03/14/29(b)			4,835		4,820,689
OneMain Financial Issuance Trust, Series 2019-2A, Class A, 3.14%, 10/14/36(b)			7,730		6,245,718
Palmer Square CLO Ltd., Series 2014-1A, Class A1R2, (LIBOR USD 3 Month + 1.13%), 2.97%, 01/17/31(b)(c)			15,000		14,131,368

Security		Par (000)		Value
Asset-Backed Securities (continued)
Palmer Square Loan Funding Ltd.(b)(c):
Series 2018-5A, Class A1, (LIBOR USD 3 Month + 0.85%), 2.67%, 01/20/27	USD		14,526	$	14,055,502
Series 2019-1A, Class B, (LIBOR USD 3 Month + 2.25%), 4.07%, 04/20/27			3,450		2,844,602
Parallel Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month + 0.85%), 2.67%, 07/20/27(b)(c)			11,036		10,694,420
PFS Financing Corp.(b):
Series 2018-B, Class A, 2.89%, 02/15/23			9,120		9,063,269
Series 2019-A, Class A1, (LIBOR USD 1 Month + 0.55%), 1.25%, 04/15/24(c)			8,480		8,054,480
Series 2019-A, Class A2, 2.86%, 04/15/24			10,780		10,593,816
Series 2019-B, Class A, (LIBOR USD 1 Month + 0.55%), 1.25%, 09/15/23(c)			33,100		31,845,772
Recette CLO Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month + 0.92%), 2.74%, 10/20/27(b)(c)			7,403		7,179,590
Regatta VI Funding Ltd., Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.08%), 2.90%, 07/20/28(b)(c)			19,235		18,047,010
Regional Management Issuance Trust, Series 2019-1, Class A, 3.05%, 11/15/28(b)			5,930		5,093,142
Republic Finance Issuance Trust, Series 2019-A, Class A, 3.43%, 11/22/27(b)			17,110		14,917,740
Santander Retail Auto Lease Trust, Series 2019-B, Class A2A, 2.29%, 04/20/22(b)			21,833		21,823,382
Sesac Finance LLC, Series 2019-1, Class A2, 5.22%, 07/25/49(b)			3,045		2,859,917
Silver Creek CLO Ltd., Series 2014-1A, Class AR, (LIBOR USD 3 Month + 1.24%), 3.06%, 07/20/30(b)(c)			5,000		4,795,981
SLM Private Credit Student Loan Trust(c):
Series 2004-A, Class A3, (LIBOR USD 3 Month + 0.40%), 1.14%, 06/15/33			1,467		1,441,821
Series 2004-B, Class A3, (LIBOR USD 3 Month + 0.33%), 1.07%, 03/15/24			2,290		2,253,736
Series 2005-A, Class A4, (LIBOR USD 3 Month + 0.31%), 1.05%, 12/15/38			9,735		9,295,591
Series 2005-B, Class A4, (LIBOR USD 3 Month + 0.33%), 1.07%, 06/15/39			9,041		8,630,009
Series 2007-A, Class A4A, (LIBOR USD 3 Month + 0.24%), 0.98%, 12/16/41			6,541		5,765,994
SLM Private Education Loan Trust(b)(c):
Series 2010-C, Class A5, (LIBOR USD 1 Month + 4.75%), 5.45%, 10/15/41			7,910		8,509,289
Series 2011-A, Class A3, (LIBOR USD 1 Month + 2.50%), 3.20%, 01/15/43			789		788,797
SLM Student Loan Trust, Series 2013-4, Class A, (LIBOR USD 1 Month + 0.55%), 1.50%, 06/25/43(c)			5,481		5,249,794
SMB Private Education Loan Trust(b):
Series 2015-A, Class A2A, 2.49%, 06/15/27			5,500		5,392,644
Series 2016-A, Class A2A, 2.70%, 05/15/31			4,734		4,750,361
Series 2016-B, Class A2A, 2.43%, 02/17/32			4,004		4,030,857
Series 2018-A, Class A2A, 3.50%, 02/15/36			21,515		22,465,868
Series 2018-B, Class A2B, (LIBOR USD 1 Month + 0.72%), 1.42%, 01/15/37(c)			11,216		10,202,365
Series 2019-A, Class A2A, 3.44%, 07/15/36			6,210		5,888,229
Series 2020-A, Class A2B, (LIBOR USD 1 Month + 0.83%), 2.51%, 09/15/37(c)			1,410		1,327,781
SoFi Professional Loan Program LLC(b):
Series 2015-D, Class A2, 2.72%, 10/27/36			4,976		4,943,909
Series 2016-A, Class A2, 2.76%, 12/26/36			2,330		2,348,701
Series 2016-C, Class A2B, 2.36%, 12/27/32			2,041		2,048,108
Series 2016-D, Class A2B, 2.34%, 04/25/33			2,014		2,015,946
Series 2016-E, Class A2B, 2.49%, 01/25/36			1,263		1,269,397

SCHEDULES OF INVESTMENTS 75

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2018-A, Class A2B, 2.95%, 02/25/42	USD		7,770	$	7,584,647
Series 2019-A, Class A2FX, 3.69%, 06/15/48			6,180		5,980,603
Series 2019-B, Class A2FX, 3.09%, 08/17/48			4,080		4,203,050
SoFi Professional Loan Program Trust(b):
Series 2018-C, Class A2FX, 3.59%, 01/25/48			4,663		4,689,588
Series 2018-D, Class A1FX, 3.12%, 02/25/48			3,075		3,088,712
Series 2020-A, Class A2FX, 2.54%, 05/15/46			12,040		11,644,682
Sound Point CLO XV Ltd., Series 2017-1A, Class C, (LIBOR USD 3 Month + 2.50%), 4.31%, 01/23/29(b)(c)			1,500		1,232,757
Soundview Home Loan Trust, Series 2003-2, Class A2, (LIBOR USD 1 Month + 1.30%), 2.25%, 11/25/33(c)			342		328,035
SpringCastle Funding Asset-Backed Notes, Series 2019-AA, Class A, 3.20%, 05/27/36(b)			25,998		24,359,436
Springleaf Funding Trust(b):
Series 2015-BA, Class A, 3.48%, 05/15/28			21,138		20,478,683
Series 2017-AA, Class A, 2.68%, 07/15/30			8,215		7,870,782
Towd Point Mortgage Trust(b)(e):
Series 2016-3, Class A1, 2.25%, 04/25/56			6,613		6,542,534
Series 2016-4, Class A1, 2.25%, 07/25/56			9,494		9,214,202
Toyota Auto Receivables Owner Trust, Series 2019-D, Class A3, 1.92%, 01/16/24			5,350		5,338,726
Transportation Finance Equipment Trust, Series 2019-1,Class A3, 1.85%, 04/24/23(b)			14,540		14,297,609
Treman Park CLO Ltd., Series 2015-1A, Class ARR, (LIBOR USD 3 Month + 1.07%), 2.89%, 10/20/28(b)(c)			27,750		26,646,008
Tryon Park CLO Ltd., Series 2013-1A, Class A1SR, (LIBOR USD 3 Month + 0.89%), 2.72%, 04/15/29(b)(c)			5,070		4,824,341
Verizon Owner Trust, Series 2020-A, Class A1A, 1.85%, 07/22/24			9,930		9,687,674
Westlake Automobile Receivables Trust, Series 2019-3A, Class A2, 2.15%, 02/15/23(b)			8,940		8,846,210
Wheels SPV 2 LLC, Series 2017-1A, Class A2, 1.88%, 04/20/26(b)			19		18,595
Total Asset-Backed Securities — 22.8% (Cost: $1,566,633,465)					1,519,033,401
Corporate Bonds — 32.8%
Aerospace & Defense — 0.3%
Boeing Co. (The), 2.70%, 05/01/22			4,580		4,334,597
Rockwell Collins, Inc., 2.80%, 03/15/22			3,693		3,731,618
Rolls-Royce plc, 2.13%, 06/18/21	EUR		530		587,089
Thales SA:
0.00%, 05/31/22			3,300		3,566,284
0.75%, 06/07/23			3,900		4,255,587
United Technologies Corp., 3.65%, 08/16/23	USD		127		133,542
					16,608,717
Airlines — 0.2%
American Airlines Group, Inc., 5.00%, 06/01/22(b)			1,155		926,887
American Airlines Pass-Through Trust, Series 2013-2, Class B, 5.60%, 07/15/20(b)			3,034		3,011,310
Avianca Holdings SA, 9.00%, 05/10/23(b)			910		192,237
Continental Airlines Pass-Through Trust, Series 2000-1, Class B, 8.39%, 11/01/20			2		1,826
Delta Air Lines, Inc., 2.60%, 12/04/20			6,980		6,666,091

Security		Par (000)		Value
Airlines (continued)
Gol Finance SA, 7.00%, 01/31/25(b)	USD		610	$	259,250
Northwest Airlines Pass-Through Trust, Series 2002-1, Class G-2, 6.26%, 11/20/21			185		173,616
					11,231,217
Auto Components — 0.1%
ZF North America Capital, Inc.(b):
4.00%, 04/29/20			5,894		5,864,530
4.50%, 04/29/22			2,431		2,280,929
					8,145,459
Automobiles — 0.4%
BMW Finance NV, 0.00%, 04/14/23	EUR		6,120		6,407,530
Daimler Finance North America LLC, 3.35%, 05/04/21(b)	USD		5,520		5,464,126
Daimler International Finance BV, 0.25%, 11/06/23	EUR		1,970		2,052,106
Hyundai Capital America, 2.55%, 04/03/20(b)	USD		4,680		4,678,303
Volkswagen Group of America Finance LLC(b):
2.40%, 05/22/20			6,500		6,478,095
2.70%, 09/26/22			2,145		2,074,645
					27,154,805
Banks — 7.8%
AIB Group plc, (LIBOR USD 3 Month + 1.87%), 4.26%, 04/10/25(b)(c)			2,985		3,034,846
Banco Bradesco SA(b):
2.85%, 01/27/23			19,500		18,378,750
3.20%, 01/27/25			990		908,325
Banco de Sabadell SA:
0.88%, 07/22/25	EUR		1,500		1,528,431
(EUR Swap Annual 1 Year + 0.97%), 0.63%, 11/07/25(c)			1,900		1,936,771
Banco Internacional del Peru SAA Interbank, 3.25%, 10/04/26(b)	USD		2,050		1,833,469
Banco Santander SA, 2.71%, 06/27/24			11,600		11,377,810
Bancolombia SA, 3.00%, 01/29/25			690		614,100
Bank Leumi Le-Israel BM, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.63%), 3.27%, 01/29/31(b)(c)			1,798		1,649,665
Bank of America Corp.:
(LIBOR USD 3 Month + 0.66%), 2.37%, 07/21/21(c)			12,225		12,216,743
(LIBOR USD 3 Month + 0.37%), 2.74%, 01/23/22(c)			3,500		3,509,903
2.50%, 10/21/22			19,800		19,850,644
3.30%, 01/11/23			21,340		22,109,091
(LIBOR USD 3 Month + 1.02%), 2.88%, 04/24/23(c)			5,690		5,713,186
(LIBOR USD 3 Month + 0.93%), 2.82%, 07/21/23(c)			14,500		14,559,607
(LIBOR USD 3 Month + 0.79%), 3.00%, 12/20/23(c)			37,000		37,747,259
(LIBOR USD 3 Month + 0.94%), 3.86%, 07/23/24(c)			20,000		20,925,635
Bank of America NA, (LIBOR USD 3 Month + 0.65%), 3.34%, 01/25/23(c)			1,740		1,739,024
Banque Federative du Credit Mutuel SA:
0.13%, 02/05/24	EUR		3,400		3,600,391
2.63%, 03/18/24			500		580,962
Barclays plc, (LIBOR USD 3 Month + 1.40%), 4.61%, 02/15/23(c)	USD		6,970		7,048,511
BBVA Bancomer SA, 6.75%, 09/30/22(b)			530		526,144
Capital One Bank USA NA, (SOFR + 0.62%), 2.01%, 01/27/23(c)			26,400		25,800,984

76 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
Citigroup, Inc.:
(LIBOR USD 3 Month + 0.72%), 3.14%, 01/24/23(c)	USD		500	$	505,890
0.75%, 10/26/23	EUR		4,430		4,732,969
Citizens Bank NA:
2.20%, 05/26/20	USD		7,192		7,180,082
3.25%, 02/14/22			4,825		4,889,257
3.70%, 03/29/23			12,350		12,651,448
Danske Bank A/S, (LIBOR USD 3 Month + 1.25%), 3.00%, 09/20/22(b)(c)			17,255		17,177,442
Discover Bank, 3.35%, 02/06/23			5,225		5,160,939
Fifth Third Bancorp, 2.60%, 06/15/22			2,700		2,668,624
Fifth Third Bank, 1.80%, 01/30/23			5,660		5,589,502
HSBC France SA, 0.25%, 05/17/24	EUR		3,700		3,917,011
HSBC Holdings plc(c):
(LIBOR USD 3 Month + 1.06%), 3.26%, 03/13/23	USD		16,480		16,465,005
(LIBOR USD 3 Month + 0.99%), 3.95%, 05/18/24			1,410		1,444,814
Huntington National Bank (The):
3.13%, 04/01/22			4,255		4,335,961
1.80%, 02/03/23			9,680		9,511,943
ING Groep NV, 1.00%, 09/20/23	EUR		4,500		4,817,037
Itau Unibanco Holding SA, 3.25%, 01/24/25(b).	USD		950		871,815
JPMorgan Chase & Co.:
2.63%, 04/23/21	EUR		1,705		1,909,370
(LIBOR USD 3 Month + 0.61%), 1.50%, 06/18/22(c)	USD		13,095		12,590,842
(LIBOR USD 3 Month + 0.70%), 3.21%, 04/01/23(c)			3,600		3,661,975
(LIBOR USD 3 Month + 0.94%), 2.78%, 04/25/23(c)			12,940		13,106,819
(LIBOR USD 3 Month + 0.73%), 3.56%, 04/23/24(c)			5,865		6,137,595
(LIBOR USD 3 Month + 0.89%), 3.80%, 07/23/24(c)			7,900		8,268,854
KBC Group NV, 1.13%, 01/25/24	EUR		3,800		4,064,686
Mitsubishi UFJ Financial Group, Inc., 3.22%, 03/07/22	USD		11,470		11,655,952
Mizuho Financial Group, Inc., 0.52%, 06/10/24	EUR		4,565		4,749,057
Royal Bank of Scotland Group plc, 3.88%, 09/12/23	USD		8,585		8,811,150
Santander Holdings USA, Inc.:
3.70%, 03/28/22			5,480		5,426,005
3.50%, 06/07/24			3,000		2,928,126
Santander UK Group Holdings plc:
3.57%, 01/10/23			1,715		1,705,760
(LIBOR USD 3 Month + 1.08%), 3.37%, 01/05/24(c)			3,715		3,746,991
Skandinaviska Enskilda Banken AB, 2.20%, 12/12/22(b)			23,690		23,293,896
Sumitomo Mitsui Financial Group, Inc., 2.85%, 01/11/22			15,220		15,303,625
Toronto-Dominion Bank (The), 0.38%, 04/25/24	EUR		2,625		2,715,181
Truist Financial Corp., 2.70%, 01/27/22	USD		1,655		1,663,913
Wells Fargo & Co.:
2.50%, 03/04/21			10,000		10,001,738
3.07%, 01/24/23			1,855		1,874,625
3.75%, 01/24/24			18,005		19,028,152
Wells Fargo Bank NA, (LIBOR USD 3 Month + 0.49%), 3.33%, 07/23/21(c)			37,630		37,692,914
					519,447,216

Security		Par (000)		Value
Beverages — 0.5%
Anheuser-Busch InBev Worldwide, Inc., 4.15%, 01/23/25	USD		4,190	$	4,498,004
Central American Bottling Corp., 5.75%, 01/31/27(b)			1,990		1,698,505
Coca-Cola Co. (The), 1.13%, 09/22/22	EUR		7,540		8,384,272
Keurig Dr Pepper, Inc., 4.06%, 05/25/23	USD		4,200		4,368,955
Pernod Ricard SA, 0.00%, 10/24/23	EUR		10,000		10,724,467
					29,674,203
Biotechnology — 0.3%
AbbVie, Inc.:
2.90%, 11/06/22	USD		1,945		1,966,199
1.38%, 05/17/24	EUR		1,595		1,760,603
2.60%, 11/21/24(b)	USD		11,100		11,207,227
2.95%, 11/21/26(b)			4,050		4,068,577
					19,002,606
Building Products — 0.1%
Carrier Global Corp., 2.24%, 02/15/25(b)			8,300		8,062,924
Capital Markets — 1.0%
Credit Suisse Group AG, 3.57%, 01/09/23(b)			8,565		8,642,089
Deutsche Bank AG, 4.25%, 02/04/21			11,560		11,100,838
Goldman Sachs Group, Inc. (The), (EURIBOR 3 Month + 0.55%), 0.16%, 04/21/23(c)	EUR		4,890		5,029,400
ING Bank NV:
0.00%, 04/08/22			2,400		2,587,488
(EURIBOR 3 Month + 0.40%), 0.02%, 04/08/22(c)			5,700		6,128,273
Series EMTM, (EUR Swap Annual 5 Year + 2.25%), 3.62%, 02/25/26(c)			4,443		4,892,305
Moody’s Corp., 2.63%, 01/15/23	USD		5,085		5,112,403
Morgan Stanley, 2.75%, 05/19/22			105		105,536
SURA Asset Management SA, 4.88%, 04/17/24(b)			1,290		1,252,509
UBS AG, (EUR Swap Annual 5 Year + 3.40%), 4.75%, 02/12/26(c)	EUR		6,025		6,512,073
UBS Group AG(c):
(LIBOR USD 3 Month + 0.95%), 2.86%, 08/15/23(b)	USD		5,810		5,761,206
(EUR Swap Annual 1 Year + 0.55%), 0.25%, 01/29/26	EUR		2,640		2,648,501
Volvo Treasury AB:
(EURIBOR 3 Month + 0.65%), 0.18%, 09/13/21(c)			4,200		4,624,604
0.00%, 02/11/23			940		1,005,199
					65,402,424
Chemicals — 0.3%
Air Liquide Finance SA, 0.38%, 04/18/22			2,500		2,744,969
BASF SE, 2.00%, 12/05/22			4,520		5,127,194
Braskem Idesa SAPI, 7.45%, 11/15/29(b)	USD		560		380,800
DuPont de Nemours, Inc., 4.21%, 11/15/23			9,500		10,003,123
Phosagro OAO, 3.05%, 01/23/25(b)			1,180		1,129,260
					19,385,346
Commercial Services & Supplies — 0.1%
Motability Operations Group plc, 1.63%, 06/09/23	EUR		5,305		6,019,589
Waste Management, Inc., 2.95%, 06/15/24	USD		2,710		2,755,118
					8,774,707
Construction & Engineering — 0.0%(b)
Aeropuertos Argentina 2000 SA, 6.88%, 02/01/27			901		533,991
Aeropuertos Dominicanos Siglo XXI SA, 6.75%, 03/30/29			530		349,800

SCHEDULES OF INVESTMENTS 77

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Construction & Engineering (continued)
Mexico City Airport Trust, 4.25%, 10/31/26	USD		2,080	$	1,843,400
					2,727,191
Construction Materials — 0.0%
Inversiones CMPC SA, 3.85%, 01/13/30(b)			1,170		1,041,300
Consumer Finance — 2.5%
AerCap Ireland Capital DAC:
4.25%, 07/01/20			3,540		3,492,193
3.95%, 02/01/22			7,750		7,018,899
3.50%, 05/26/22			21,035		18,621,790
4.63%, 07/01/22			4,515		3,767,298
2.88%, 08/14/24			9,600		7,643,490
3.50%, 01/15/25			11,200		9,081,459
American Express Co., 2.50%, 08/01/22			3,865		3,890,057
American Honda Finance Corp.:
1.38%, 11/10/22	EUR		890		975,975
0.55%, 03/17/23			4,220		4,517,859
Capital One Financial Corp.:
2.40%, 10/30/20	USD		4,420		4,410,860
3.20%, 01/30/23			10,000		9,884,113
Ford Motor Credit Co. LLC:
3.34%, 03/28/22			8,932		8,309,440
4.14%, 02/15/23			9,830		9,110,444
General Motors Financial Co., Inc.:
3.70%, 11/24/20			7,720		7,644,217
3.20%, 07/06/21			29,901		28,463,487
4.20%, 11/06/21			4,325		4,127,971
John Deere Capital Corp., 2.60%, 03/07/24			2,310		2,323,691
Muthoot Finance Ltd., 6.13%, 10/31/22(b)			1,110		945,581
Synchrony Financial, 2.85%, 07/25/22			4,740		4,500,454
Toyota Motor Credit Corp., 2.38%, 02/01/23	EUR		3,980		4,536,232
Volkswagen Bank GmbH, 1.88%, 01/31/24			7,000		7,568,133
Volkswagen Leasing GmbH:
(EURIBOR 3 Month + 0.45%), 0.05%, 08/02/21(c)			5,600		6,085,079
1.00%, 02/16/23			9,800		10,484,167
					167,402,889
Containers & Packaging — 0.0%
Klabin Finance SA, 4.88%, 09/19/27(b)	USD		286		255,792
WRKCo, Inc., 3.75%, 03/15/25			2,210		2,221,654
					2,477,446
Diversified Financial Services — 1.4%
Banco Votorantim SA, 4.50%, 09/24/24(b)			880		788,700
GE Capital International Funding Co. Unlimited Co., 2.34%, 11/15/20			42,130		41,421,611
JPMorgan Chase Bank NA, (LIBOR USD 3 Month + 0.35%), 3.09%, 04/26/21(c)			36,790		36,774,954
MDGH - GMTN BV, 2.50%, 11/07/24(b)			1,770		1,708,050
Operadora de Servicios Mega SA de CV Sofom ER, 8.25%, 02/11/25(b)			990		624,938
Siemens Financieringsmaatschappij NV:
0.00%, 02/20/23	EUR		6,500		7,051,209
0.38%, 09/06/23			5,710		6,254,484
					94,623,946
Diversified Telecommunication Services — 1.5%
AT&T, Inc.:
3.00%, 06/30/22	USD		10,800		10,893,969
3.95%, 01/15/25			4,550		4,804,745
BellSouth LLC, 4.27%, 04/26/20(a)(b)			36,000		35,996,400
Orange SA:
0.50%, 01/15/22	EUR		3,400		3,733,586
0.75%, 09/11/23			8,000		8,784,448
Telecom Argentina SA, 6.50%, 06/15/21(b)	USD		2,040		1,713,600
Telstra Corp. Ltd., 3.50%, 09/21/22	EUR		4,700		5,529,399

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
Verizon Communications, Inc.:
0.50%, 06/02/22	EUR		1,675	$	1,832,690
4.15%, 03/15/24	USD		7,800		8,462,823
3.50%, 11/01/24			9,240		9,830,357
3.38%, 02/15/25			7,400		7,904,694
					99,486,711
Electric Utilities — 0.8%
Adani Electricity Mumbai Ltd., 3.95%, 02/12/30(b)			390		320,775
Alliant Energy Finance LLC, 3.75%, 06/15/23(b)			8,085		8,358,102
Duke Energy Corp., 3.95%, 10/15/23			8,435		8,788,928
Enel Americas SA, 4.00%, 10/25/26			2,110		1,973,509
Enel Finance International NV, 0.00%, 06/17/24	EUR		7,930		8,332,766
Enexis Holding NV, 3.38%, 01/26/22			2,200		2,556,255
ESB Finance DAC, 3.49%, 01/12/24			2,185		2,655,158
Exelon Corp., 2.45%, 04/15/21	USD		4,890		4,847,233
FirstEnergy Corp., Series A, 2.85%, 07/15/22			4,346		4,239,084
Florida Power & Light Co., (LIBOR USD 3 Month + 0.40%), 2.14%, 05/06/22(c)			9,155		8,633,638
ITC Holdings Corp., 2.70%, 11/15/22			2,180		2,161,576
Kallpa Generacion SA, 4.88%, 05/24/26			441		420,328
Pampa Energia SA, 7.38%, 07/21/23(b)			1,690		1,128,603
RTE Reseau de Transport d’Electricite SADIR, 1.63%, 10/08/24	EUR		1,000		1,144,146
					55,560,101
Electrical Equipment — 0.2%
Eaton Capital Unlimited Co., 0.02%, 05/14/21			6,455		7,079,053
Schneider Electric SE, 0.25%, 09/09/24			2,900		3,121,725
					10,200,778
Electronic Equipment, Instruments & Components — 0.1%
Amphenol Corp., 2.20%, 04/01/20	USD		6,520		6,520,000
Energy Equipment & Services — 0.0%
Halliburton Co., 3.80%, 11/15/25			398		375,640
Equity Real Estate Investment Trusts (REITs) — 0.5%
American Tower Corp.:
3.50%, 01/31/23			3,070		3,085,705
2.40%, 03/15/25			4,355		4,275,570
1.95%, 05/22/26	EUR		2,710		3,040,769
AvalonBay Communities, Inc., 2.30%, 03/01/30	USD		2,855		2,688,130
Crown Castle International Corp., 3.20%, 09/01/24			3,205		3,195,005
Equinix, Inc., 2.63%, 11/18/24			12,835		12,241,510
Nationwide Health Properties, Inc., 6.59%, 07/07/38			1,400		1,526,235
Simon International Finance SCA, 1.38%, 11/18/22	EUR		1,535		1,723,035
					31,775,959
Food Products — 0.4%
Arcor SAIC, 6.00%, 07/06/23(b)	USD		2,480		1,937,500
BRF GmbH, 4.35%, 09/29/26			510		432,942
Conagra Brands, Inc., (LIBOR USD 3 Month + 0.75%), 2.55%, 10/22/20(c)			6,540		6,470,787
General Mills, Inc., 0.45%, 01/15/26	EUR		1,420		1,493,158
Grupo Bimbo SAB de CV, 4.50%, 01/25/22	USD		1,990		1,996,530
Kraft Heinz Foods Co.:
4.88%, 02/15/25(b)			4,618		4,628,384
3.95%, 07/15/25			9,400		9,354,761
Minerva Luxembourg SA, 6.50%, 09/20/26(b)			790		724,825
					27,038,887
Health Care Equipment & Supplies — 0.8%
Abbott Ireland Financing DAC:
0.88%, 09/27/23	EUR		4,445		4,874,731

78 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Health Care Equipment & Supplies (continued)
0.10%, 11/19/24	EUR		3,290	$	3,453,921
Becton Dickinson and Co.:
2.40%, 06/05/20	USD		6,145		6,125,872
1.40%, 05/24/23	EUR		3,825		4,229,873
Becton Dickinson Euro Finance SARL, 0.63%, 06/04/23			1,885		2,032,339
DH Europe Finance II SARL, 0.20%, 03/18/26			2,625		2,674,459
DH Europe Finance SARL, (EURIBOR 3 Month + 0.30%), 0.00%, 06/30/22(c)			6,310		6,825,026
Medtronic Global Holdings SCA:
0.00%, 12/02/22			11,190		12,033,853
0.38%, 03/07/23			4,330		4,690,495
Stryker Corp.:
1.13%, 11/30/23			2,025		2,255,112
0.25%, 12/03/24			2,600		2,763,621
					51,959,302
Health Care Providers & Services — 0.6%
Anthem, Inc., 3.13%, 05/15/22	USD		2,685		2,731,649
Cigna Corp., 3.20%, 09/17/20			15,000		15,021,994
CVS Health Corp., 4.10%, 03/25/25			14,000		14,809,653
Express Scripts Holding Co., 2.60%, 11/30/20			8,700		8,687,452
					41,250,748
Hotels, Restaurants & Leisure — 0.1%
Marriott International, Inc., 2.88%, 03/01/21			2,620		2,452,450
McDonald’s Corp.:
1.13%, 05/26/22	EUR		4,400		4,870,434
1.00%, 11/15/23			1,900		2,094,684
					9,417,568
Household Products — 0.0%
Procter & Gamble Co. (The), 0.63%, 10/30/24			840		925,143
Independent Power and Renewable Electricity Producers — 0.0%
Colbun SA, 3.15%, 03/06/30(b)	USD		295		274,350
Industrial Conglomerates — 0.3%
3M Co., 0.95%, 05/15/23	EUR		3,785		4,206,136
Grupo KUO SAB de CV, 5.75%, 07/07/27(b)	USD		560		404,950
Honeywell International, Inc.:
1.30%, 02/22/23	EUR		12,010		13,441,520
0.00%, 03/10/24			2,110		2,247,462
					20,300,068
Insurance — 0.5%
Allianz Finance II BV:
0.25%, 06/06/23			5,800		6,258,265
0.00%, 01/14/25			1,200		1,263,243
American International Group, Inc., 3.38%, 08/15/20	USD		3,952		3,961,342
Marsh & McLennan Cos., Inc., 3.50%, 03/10/25			10,479		10,858,525
Metropolitan Life Global Funding I:
0.00%, 09/23/22	EUR		830		886,971
2.38%, 01/11/23			1,285		1,452,833
0.38%, 04/09/24			2,216		2,323,937
Pricoa Global Funding I, 2.45%, 09/21/22(b)	USD		4,090		4,012,114
Willis Towers Watson plc, 5.75%, 03/15/21			2,206		2,260,444
					33,277,674
Interactive Media & Services — 0.1%
Baidu, Inc., 2.88%, 07/06/22			8,205		8,343,541
IT Services — 0.4%
Fiserv, Inc.:
3.50%, 10/01/22			8,270		8,330,108
2.75%, 07/01/24			45		45,171
Global Payments, Inc., 3.75%, 06/01/23			4,640		4,792,076
International Business Machines Corp., 0.38%, 01/31/23	EUR		2,665		2,902,547

Security		Par (000)		Value
IT Services (continued)
Mastercard, Inc., 1.10%, 12/01/22	EUR		6,490	$	7,235,246
					23,305,148
Machinery — 0.2%
Atlas Copco AB, 2.50%, 02/28/23			5,700		6,631,547
Illinois Tool Works, Inc., 0.25%, 12/05/24			3,980		4,265,011
Parker-Hannifin Corp., 2.70%, 06/14/24	USD		2,115		2,106,067
					13,002,625
Media — 1.1%
Cable Onda SA, 4.50%, 01/30/30(b)			590		519,200
Charter Communications Operating LLC:
3.58%, 07/23/20			13,200		13,158,931
Series USD, 4.50%, 02/01/24			2,280		2,349,234
Cox Communications, Inc., 3.15%, 08/15/24(b)			7,755		7,915,600
Discovery Communications LLC:
4.38%, 06/15/21			3,695		3,753,318
3.30%, 05/15/22			10,000		9,798,939
Interpublic Group of Cos., Inc. (The):
3.50%, 10/01/20			4,490		4,421,808
3.75%, 10/01/21			1,545		1,559,899
RELX Finance BV, 0.00%, 03/18/24	EUR		1,620		1,718,879
Sky Ltd., 1.50%, 09/15/21			2,040		2,266,939
ViacomCBS, Inc.:
4.50%, 03/01/21	USD		2,010		2,023,526
3.38%, 03/01/22			279		277,691
2.50%, 02/15/23			3,959		3,824,897
2.90%, 06/01/23			11,400		10,674,648
4.25%, 09/01/23			2,600		2,651,406
3.88%, 04/01/24			3,860		3,777,152
					70,692,067
Metals & Mining — 0.1%
Anglo American Capital plc, 4.13%, 04/15/21(b)			2,221		2,188,493
Arconic Corp., 6.13%, 02/15/28(b)			705		720,862
Gold Fields Orogen Holdings BVI Ltd., 5.13%, 05/15/24(b)			1,260		1,183,219
Nexa Resources SA, 5.38%, 05/04/27(b)			560		420,000
Usiminas International SARL, 5.88%, 07/18/26(b)			510		389,672
Vale Overseas Ltd., 6.25%, 08/10/26			790		845,316
					5,747,562
Multiline Retail — 0.0%
Future Retail Ltd., 5.60%, 01/22/25(b)			930		466,163
Multi-Utilities — 0.7%
CenterPoint Energy, Inc., 2.50%, 09/01/22			5,150		5,033,654
Dominion Energy, Inc.(a):
2.58%, 07/01/20			2,525		2,521,969
2.72%, 08/15/21			10,910		10,750,683
E.ON SE, 0.00%, 10/24/22	EUR		5,720		6,181,975
Engie SA, 0.38%, 02/28/23			3,600		3,917,879
innogy Finance BV, 0.75%, 11/30/22			1,150		1,264,507
National Grid Electricity Transmission plc, 0.19%, 01/20/25			1,490		1,581,269
Sempra Energy, (LIBOR USD 3 Month + 0.50%), 2.33%, 01/15/21(c)	USD		6,185		5,858,616
Veolia Environnement SA, 0.67%, 03/30/22	EUR		5,400		5,941,236
					43,051,788
Oil, Gas & Consumable Fuels — 2.5%
Apache Corp.:
3.63%, 02/01/21	USD		497		401,773
3.25%, 04/15/22			2,286		1,716,329
BP Capital Markets plc:
1.53%, 09/26/22	EUR		6,405		7,068,864
1.11%, 02/16/23			3,995		4,378,768
Concho Resources, Inc., 4.38%, 01/15/25	USD		8,530		7,137,228

SCHEDULES OF INVESTMENTS 79

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Diamondback Energy, Inc., 2.88%, 12/01/24	USD		8,710	$	6,083,895
Energy Transfer Operating LP:
3.60%, 02/01/23			2,900		2,578,295
4.25%, 03/15/23			35,795		32,412,380
5.88%, 01/15/24			10,825		10,222,286
4.50%, 04/15/24			1,433		1,278,101
Enterprise Products Operating LLC, 2.85%, 04/15/21			5,800		5,731,730
Geopark Ltd., 5.50%, 01/17/27(b)			520		252,200
GNL Quintero SA, 4.63%, 07/31/29			2,750		2,660,625
Kinder Morgan Energy Partners LP, 4.25%, 09/01/24			1,530		1,495,342
Kinder Morgan, Inc., 5.00%, 02/15/21(b)			7,000		6,962,385
MPLX LP:
(LIBOR USD 3 Month + 0.90%), 1.90%, 09/09/21(c)			8,130		7,682,323
6.25%, 10/15/22(b)			2,658		2,392,791
3.50%, 12/01/22(b)			4,885		4,677,027
Newfield Exploration Co., 5.63%, 07/01/24			17,388		9,331,132
Occidental Petroleum Corp.:
2.60%, 08/13/21			2,285		1,796,682
2.70%, 08/15/22			2,840		2,025,049
2.90%, 08/15/24			21,300		11,658,025
Ovintiv, Inc., 3.90%, 11/15/21			4,850		3,326,363
Petrobras Global Finance BV:
4.38%, 05/20/23			760		724,850
5.30%, 01/27/25			3,970		3,778,944
7.38%, 01/17/27			510		520,200
Sabine Pass Liquefaction LLC, 5.75%, 05/15/24			2,747		2,543,604
Spectra Energy Partners LP, 4.75%, 03/15/24			1,710		1,642,904
Sunoco LP, 4.88%, 01/15/23			860		821,300
Total Capital International SA, 0.25%, 07/12/23	EUR		4,400		4,749,241
TransCanada PipeLines Ltd., 3.75%, 10/16/23	USD		1,580		1,629,802
Williams Cos., Inc. (The):
4.00%, 11/15/21			4,650		4,412,009
3.60%, 03/15/22			7,040		6,825,004
3.70%, 01/15/23			7,000		6,471,921
					167,389,372
Paper & Forest Products — 0.0%
Suzano Austria GmbH, 5.75%, 07/14/26			510		492,150
Pharmaceuticals — 1.3%
Allergan Finance LLC, 3.25%, 10/01/22			12,773		12,807,250
Allergan Funding SCS:
3.45%, 03/15/22			39,913		41,443,190
1.25%, 06/01/24	EUR		1,305		1,440,594
Allergan, Inc., 2.80%, 03/15/23	USD		6,200		6,164,168
Bristol-Myers Squibb Co., 2.75%, 02/15/23(b)			3,030		3,132,619
Merck Financial Services GmbH, 0.01%, 12/15/23	EUR		8,200		8,764,779
Shire Acquisitions Investments Ireland DAC, 2.88%, 09/23/23	USD		4,600		4,633,421
Takeda Pharmaceutical Co. Ltd., 4.40%, 11/26/23			6,815		7,173,306
					85,559,327
Real Estate Management & Development — 0.2%
Unique Pub Finance Co. plc (The), Series M, 7.40%, 03/28/24(a)	GBP		4,920		6,789,572
Vonovia Finance BV, 0.13%, 04/06/23	EUR		4,100		4,358,749
					11,148,321
Road & Rail — 1.0%
Penske Truck Leasing Co. LP(b):
3.30%, 04/01/21	USD		7,930		7,965,382
3.38%, 02/01/22			14,259		14,415,518
4.25%, 01/17/23			3,235		3,314,026

Security		Par (000)		Value
Road & Rail (continued)
2.70%, 03/14/23	USD		11,114	$	10,979,585
2.70%, 11/01/24			3,595		3,354,511
Rumo Luxembourg SARL, 5.88%, 01/18/25(b)			850		796,875
Ryder System, Inc.:
2.88%, 09/01/20			2,250		2,240,008
3.75%, 06/09/23			4,735		4,752,895
2.50%, 09/01/24			11,490		10,937,510
Union Pacific Corp., 2.15%, 02/05/27			6,425		6,274,413
					65,030,723
Semiconductors & Semiconductor Equipment — 1.5%
Broadcom Corp., 3.00%, 01/15/22			9,700		9,592,039
Broadcom, Inc., 3.13%, 04/15/21(b)			8,380		8,288,746
Lam Research Corp., 3.75%, 03/15/26			31,300		33,200,966
NXP BV(b):
4.13%, 06/01/21			18,800		18,968,968
4.63%, 06/15/22			3,820		3,952,230
3.88%, 09/01/22			15,404		15,463,675
3.88%, 06/18/26			12,500		12,160,137
QUALCOMM, Inc., 3.00%, 05/20/22			550		561,150
					102,187,911
Software — 0.3%
Amadeus Capital Markets SAU, 1.63%, 11/17/21	EUR		3,100		3,400,082
CA, Inc., 3.60%, 08/15/22	USD		3,655		3,426,654
Dassault Systemes SE, 0.00%, 09/16/22	EUR		4,600		4,975,750
SAP SE, 0.25%, 03/10/22			5,800		6,356,456
					18,158,942
Technology Hardware, Storage & Peripherals — 0.7%
Apple, Inc., 1.00%, 11/10/22			10,245		11,433,807
Dell International LLC(b):
4.42%, 06/15/21	USD		2,785		2,784,388
5.45%, 06/15/23			16,770		17,233,704
Hewlett Packard Enterprise Co., 3.60%, 10/15/20(a)			8,000		8,009,688
Xerox Corp., 3.50%, 08/20/20			8,620		8,422,904
					47,884,491
Textiles, Apparel & Luxury Goods — 0.2%
LVMH Moet Hennessy Louis Vuitton SE:
0.38%, 05/26/22	EUR		500		547,804
0.13%, 02/28/23			3,200		3,471,858
0.00%, 02/11/24			4,000		4,284,844
0.00%, 02/11/26			4,700		4,937,374
					13,241,880
Thrifts & Mortgage Finance — 0.0%
BPCE SA, 0.25%, 01/15/26			2,100		2,175,184
Tobacco — 1.3%
Altria Group, Inc.:
3.49%, 02/14/22	USD		5,610		5,738,977
2.85%, 08/09/22			20,785		20,886,151
1.00%, 02/15/23	EUR		2,325		2,516,736
3.80%, 02/14/24	USD		6,400		6,486,955
1.70%, 06/15/25	EUR		1,315		1,422,479
BAT Capital Corp.:
3.22%, 08/15/24	USD		2,900		2,790,654
2.79%, 09/06/24			28,600		27,649,480
BAT International Finance plc:
3.25%, 06/07/22(b)			545		543,136
0.88%, 10/13/23	EUR		2,124		2,288,943
Philip Morris International, Inc.:
2.88%, 03/03/26			1,080		1,266,574
0.13%, 08/03/26			730		721,918
Reynolds American, Inc.:
6.88%, 05/01/20	USD		7,889		7,909,613

80 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Tobacco (continued)
3.25%, 06/12/20	USD		6,460	$	6,440,620
					86,662,236
Trading Companies & Distributors — 0.2%
Air Lease Corp., 2.63%, 07/01/22			8,375		7,143,960
International Lease Finance Corp., 4.63%, 04/15/21			5,702		5,264,152
					12,408,112
Transportation Infrastructure — 0.0%
Autoroutes du Sud de la France SA, 2.95%, 01/17/24	EUR		2,500		2,959,577
Wireless Telecommunication Services — 0.2%(b)
Millicom International Cellular SA, 5.13%, 01/15/28	USD		1,640		1,429,363
Sprint Spectrum Co. LLC:
3.36%, 09/20/21(a)			1,179		1,173,478
4.74%, 03/20/25			8,110		8,272,200
VEON Holdings BV, 4.00%, 04/09/25			920		874,000
					11,749,041
Total Corporate Bonds — 32.8% (Cost: $2,270,604,824)					2,181,181,486
Foreign Agency Obligations — 1.0%
Argentina — 0.0%
YPF SA, 8.75%, 04/04/24(b)			1,500		813,750
Bahrain — 0.0%
CBB International Sukuk Co. 7 SPC, 6.88%, 10/05/25			1,990		1,957,663
Brazil — 0.0%
Centrais Eletricas Brasileiras SA, 3.63%, 02/04/25(b)			1,000		890,000
Canada — 0.6%
Canada Housing Trust, 2.10%, 09/15/29(b)	CAD		52,000		38,943,281
Chile — 0.1%
Empresa Nacional del Petroleo, 5.25%, 08/10/20(b)	USD		6,150		6,173,063
Colombia — 0.0%
Ecopetrol SA, 5.38%, 06/26/26			2,070		2,002,660
Mexico — 0.1%
Petroleos Mexicanos:
6.88%, 08/04/26			1,720		1,302,900
6.84%, 01/23/30(b)			1,570		1,135,926
5.95%, 01/28/31(b)			5,370		3,705,300
					6,144,126
Panama — 0.1%
AES Panama SRL, 6.00%, 06/25/22(b)			2,430		2,284,200
Saudi Arabia — 0.1%
Saudi Arabian Oil Co.(b):
2.88%, 04/16/24			3,245		3,155,763
3.50%, 04/16/29			920		903,900
					4,059,663
Total Foreign Agency Obligations — 1.0% (Cost: $68,181,496)					63,268,406

Security		Par (000)		Value
Foreign Government Obligations — 1.6%
Brazil — 0.1%
Federative Republic of Brazil:
4.88%, 01/22/21	USD		2,440	$	2,481,938
4.63%, 01/13/28			1,940		2,066,100
					4,548,038
Chile — 0.2%
Republic of Chile:
2.25%, 10/30/22			950		953,859
3.13%, 03/27/25			3,970		4,106,965
3.13%, 01/21/26			1,380		1,446,413
3.24%, 02/06/28			4,150		4,384,734
					10,891,971
Colombia — 0.2%
Republic of Colombia:
4.00%, 02/26/24			2,690		2,707,653
8.13%, 05/21/24			3,010		3,452,094
4.50%, 01/28/26			3,760		3,819,925
3.88%, 04/25/27			2,510		2,471,566
4.50%, 03/15/29			1,720		1,756,012
					14,207,250
Croatia — 0.0%
Republic of Croatia, 6.63%, 07/14/20			2,160		2,164,320
Dominican Republic — 0.0%
Dominican Republic Government Bond:
5.50%, 01/27/25			1,090		1,043,675
6.88%, 01/29/26			1,010		1,002,109
					2,045,784
Egypt — 0.1%
Arab Republic of Egypt:
5.75%, 04/29/20			2,090		2,083,469
6.13%, 01/31/22			500		479,531
16.00%, 06/11/22	EGP		29,180		1,877,708
14.30%, 09/03/22			31,630		1,973,753
5.58%, 02/21/23(b)	USD		1,160		1,073,725
4.75%, 04/11/25(b)	EUR		290		277,062
6.38%, 04/11/31(b)			1,250		1,089,544
					8,854,792
Indonesia — 0.2%
Republic of Indonesia:
3.75%, 04/25/22	USD		1,290		1,299,675
4.75%, 01/08/26			2,010		2,128,087
0.90%, 02/14/27	EUR		1,850		1,775,118
3.50%, 01/11/28	USD		1,600		1,577,000
4.10%, 04/24/28			1,190		1,214,916
6.13%, 05/15/28	IDR		37,798,000		2,061,393
4.75%, 02/11/29	USD		450		486,000
					10,542,189
Israel — 0.0%
State of Israel Government Bond, 2.75%, 07/03/30			990		990,000
Mexico — 0.0%
United Mexican States, 4.13%, 01/21/26			1,460		1,494,675
Nigeria — 0.0%
Federal Republic of Nigeria:
6.38%, 07/12/23			980		809,113

SCHEDULES OF INVESTMENTS 81

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Nigeria (continued)
7.63%, 11/21/25	USD		1,659	$	1,277,430
					2,086,543
Panama — 0.1%
Republic of Panama:
4.00%, 09/22/24			2,840		2,963,363
3.88%, 03/17/28			2,560		2,744,800
					5,708,163
Philippines — 0.1%
Republic of Philippines:
4.20%, 01/21/24			3,670		3,887,906
5.50%, 03/30/26			2,540		2,895,600
					6,783,506
Poland — 0.1%
Republic of Poland:
3.00%, 03/17/23			1,960		2,054,325
3.25%, 04/06/26			1,990		2,164,125
					4,218,450
Qatar — 0.1%
State of Qatar:
4.50%, 04/23/28			3,055		3,375,775
4.00%, 03/14/29(b)			3,740		4,001,800
					7,377,575
Russia — 0.2%
Russian Federation:
4.75%, 05/27/26			4,200		4,466,700
4.25%, 06/23/27			5,400		5,656,500
					10,123,200
Saudi Arabia — 0.1%
Kingdom of Saudi Arabia:
4.00%, 04/17/25			2,050		2,123,800
3.25%, 10/26/26			854		849,730
3.63%, 03/04/28			600		609,187
4.38%, 04/16/29(b)			2,180		2,342,819
					5,925,536
Turkey — 0.0%
Republic of Turkey, 7.63%, 04/26/29			940		898,581
Ukraine — 0.1%
Ukraine Government Bond:
8.99%, 02/01/24			930		853,275
7.75%, 09/01/24			953		879,143
7.75%, 09/01/27			2,045		1,873,731
9.75%, 11/01/28			1,490		1,451,353
					5,057,502
Total Foreign Government Obligations — 1.6% (Cost: $111,282,093)					103,918,075
		Shares
Investment Companies — 3.0%*
iShares iBoxx $ High Yield Corporate Bond ETF			575,000		44,315,250
iShares Short Maturity Bond ETF			3,180,000		154,198,200
Total Investment Companies — 3.0% (Cost: $208,944,094)					198,513,450

Security		Par (000)		Value
Municipal Bonds — 0.2%
South Carolina Public Service Authority:
Series 2016D, RB, 2.39%, 12/01/23	USD		7,530	$	7,646,640
Series 2012E, RB, 3.72%, 12/01/23			6,833		7,256,168
Total Municipal Bonds — 0.2% (Cost: $14,451,964)					14,902,808
Non-Agency Mortgage-Backed Securities — 17.0%
Collateralized Mortgage Obligations — 2.8%
Banc of America Mortgage Trust, Series 2003-J, Class 2A1, 4.03%, 11/25/33(e)			280		241,855
Bear Stearns ARM Trust, Series 2004-5, Class 2A, 4.38%, 07/25/34(e)			391		357,866
BlackRock Capital Finance LP, Series 1997-R2, Class AP, 1.29%, 12/25/35(b)(e)*			19		17,075
Chase Home Lending Mortgage Trust(b)(e):
Series 2019-ATR2, Class A11, 1.85%, 07/25/49			3,751		3,556,798
Series 2019-ATR2, Class A3, 3.50%, 07/25/49			8,028		8,130,246
CHL Mortgage Pass-Through Trust:
Series 2004-29, Class 1A1, 1.49%, 02/25/35(e)			341		280,127
Series 2005-17, Class 1A6, 5.50%, 09/25/35			629		580,613
Series 2005-HYB8, Class 2A1, 3.79%, 12/20/35(e)			890		727,187
CMF plc(e):
Series 2020-1, Class B, 1.71%, 01/16/57	GBP		220		261,234
Series 2020-1, Class C, 1.96%, 01/16/57			105		124,708
CSMC Trust, Series 2019-RP10, Class A1, 3.32%, 12/26/59(b)(e)	USD		3,969		4,051,732
Finsbury Square plc, Series 2020-1A, Class C, 2.06%, 03/16/70(b)(e)	GBP		225		263,550
Gosforth Funding plc, Series 2018-1A, Class A1, 2.13%, 08/25/60(b)(e)	USD		8,497		7,791,370
JPMorgan Mortgage Trust(b)(e):
Series 2016-2, Class A1, 2.82%, 06/25/46			10,851		10,699,396
Series 2017-1, Class A4, 3.50%, 01/25/47			11,426		11,391,658
Series 2017-3, Class 1A6, 3.00%, 08/25/47			7,822		7,758,308
Series 2017-6, Class A6, 3.00%, 12/25/48			5,454		5,429,899
Series 2020-LTV1, Class A11, 2.63%, 06/25/50			11,713		11,219,063
Lanark Master Issuer plc, Series 2019-1A, Class 1A1, 2.45%, 12/22/69(b)(e)			7,856		7,799,668
MortgageIT Trust, Series 2004-1, Class A1, 1.73%, 11/25/34(e)			846		779,917
National RMBS Trust, Series 2012-2, Class A1, 1.62%, 06/20/44(e)	AUD		849		524,036
New Residential Mortgage Loan Trust(b)(e):
Series 2016-3A, Class A1B, 3.25%, 09/25/56	USD		2,535		2,573,224
Series 2018-1A, Class A1A, 4.00%, 12/25/57			8,518		8,806,908
Series 2020-1A, Class A1B, 3.50%, 10/25/59			20,396		20,463,136
Permanent Master Issuer plc, Series 2018-1A, Class 1A1, 2.21%, 07/15/58(b)(e)			12,480		12,017,682
RCO V Mortgage LLC, Series 2019-1, Class A1, 3.72%, 05/24/24(a)(b)			8,707		8,278,624
Seasoned Credit Risk Transfer Trust:
Series 2018-2, Class MA, 3.50%, 11/25/57			9,728		10,261,809
Series 2019-4, Class MA, 3.00%, 02/25/59			21,928		22,800,711
Sequoia Mortgage Trust(b)(e):
Series 2017-CH1, Class A2, 3.50%, 08/25/47			6,758		6,678,416

82 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Collateralized Mortgage Obligations (continued)
Series 2017-CH2, Class A10, 4.00%, 12/25/47	USD		2,960	$	2,957,157
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-13, Class A2, 0.49%, 09/25/34(e)			786		632,160
TORRENS Trust, Series 2013-1, Class A, 1.55%, 04/12/44(e)	AUD		4,809		2,959,986
Walsh Acceptance, Series 1997-2, Class A, 3.69%, 03/01/27(b)(e)	USD		5		2,617
Wells Fargo Mortgage Backed Securities Trust, Series 2019-4, Class A2, 3.00%, 09/25/49(b)(e)			5,617		5,613,373
					186,032,109
Commercial Mortgage-Backed Securities — 14.2%
280 Park Avenue Mortgage Trust, Series 2017- 280P, Class D, 2.24%, 09/15/34(b)(e)			6,910		6,028,115
AOA Mortgage Trust, Series 2015-1177, Class D, 3.01%, 12/13/29(b)(e)			4,855		4,683,430
Aventura Mall Trust, Series 2013-AVM, Class A, 3.74%, 12/05/32(b)(e)			16,080		15,875,888
BAMLL Commercial Mortgage Securities Trust(b):
Series 2012-PARK, Class A, 2.96%, 12/10/30			4,175		4,216,405
Series 2017-SCH, Class AF, 1.70%, 11/15/33(e)			3,270		3,137,189
Series 2018-DSNY, Class A, 1.55%, 09/15/34(e)			12,495		10,623,077
BAMLL Trust, Series 2011-FSHN, Class D, 5.62%, 07/11/33(b)			11,600		10,843,462
BANK:
Series 2018-BN14, Class A2, 4.13%, 09/15/60			6,000		6,366,490
Series 2019-BN16, Class A2, 3.93%, 02/15/52			12,200		12,850,806
Series 2019-BN18, Class A2, 3.47%, 05/15/62			15,479		16,153,406
BBCMS Trust, Series 2013-TYSN, Class E, 3.71%, 09/05/32(b)			3,765		3,641,486
Bear Stearns Commercial Mortgage Securities Trust(e):
Series 2005-PW10, Class AJ, 5.59%, 12/11/40			18,670		18,616,142
Series 2005-PW10, Class B, 5.61%, 12/11/40			13,697		13,661,566
Benchmark Mortgage Trust:
Series 2019-B15, Class A5, 2.93%, 12/15/72			22,045		22,821,936
Series 2019-B9, Class A5, 4.02%, 03/15/52			10,000		11,070,991
BX Commercial Mortgage Trust(b)(e):
Series 2018-IND, Class A, 1.45%, 11/15/35			3,393		3,205,779
Series 2019-XL, Class A, 1.62%, 10/15/36			25,286		24,051,302
Series 2019-XL, Class D, 2.15%, 10/15/36			17,704		15,842,282
Series 2020-BXLP, Class A, 1.50%, 12/15/36			21,726		20,148,805
Series 2020-BXLP, Class F, 2.70%, 12/15/36			5,053		4,344,733
BX Trust, Series 2019-OC11, Class A, 3.20%, 12/09/41(b)			8,980		8,108,221
Cantor Commercial Real Estate Lending, Series 2019-CF3, Class A4, 3.01%, 01/15/53			13,543		13,536,157
CFCRE Commercial Mortgage Trust:
Series 2016-C4, Class ASB, 3.09%, 05/10/58			4,741		4,863,372
Series 2018-TAN, Class A, 4.24%, 02/15/33(b)			15,000		14,160,228
Series 2018-TAN, Class B, 4.69%, 02/15/33(b)			12,905		12,079,451

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
CGDBB Commercial Mortgage Trust, Series 2017-BIOC, Class A, 1.49%, 07/15/32(b)(e)	USD		5,426	$	4,866,496
Citigroup Commercial Mortgage Trust:
Series 2012-GC8, Class A4, 3.02%, 09/10/45			14,342		14,580,521
Series 2013-375P, Class A, 3.25%, 05/10/35(b)			9,460		9,346,288
Series 2013-GC11, Class A3, 2.82%, 04/10/46			26,424		26,779,365
Series 2015-GC31, Class A4, 3.76%, 06/10/48			9,000		9,398,735
Series 2016-P3, Class A2, 2.74%, 04/15/49			7,647		7,655,185
Commercial Mortgage Trust:
Series 2012-CR1, Class A3, 3.39%, 05/15/45			9,571		9,655,277
Series 2012-CR3, Class A3, 2.82%, 10/15/45			7,746		7,632,182
Series 2013-CR10, Class ASB, 3.80%, 08/10/46			2,345		2,412,651
Series 2013-CR12, Class A4, 4.05%, 10/10/46			15,633		16,521,638
Series 2013-CR13, Class A4, 4.19%, 11/10/46(e)			4,515		4,779,282
Series 2014-UBS3, Class ASB, 3.37%, 06/10/47			16,787		17,115,728
Series 2014-UBS5, Class ASB, 3.55%, 09/10/47			6,530		6,701,790
Series 2014-UBS6, Class ASB, 3.39%, 12/10/47			1,711		1,757,921
Series 2015-CR22, Class A3, 3.21%, 03/10/48			28,180		28,584,693
Series 2015-CR23, Class A2, 2.85%, 05/10/48			5,151		5,147,016
Series 2015-CR24, Class ASB, 3.45%, 08/10/48			7,580		7,833,645
Series 2015-LC21, Class ASB, 3.42%, 07/10/48			9,600		9,892,701
CSAIL Commercial Mortgage Trust:
Series 2015-C1, Class A4, 3.51%, 04/15/50			6,563		6,785,750
Series 2015-C1, Class ASB, 3.35%, 04/15/50			13,442		13,785,686
Exantas Capital Corp. Ltd., Series 2018-RSO6, Class A, 1.63%, 06/15/35(b)(e)			522		481,909
Four Times Square Trust Commercial Mortgage Pass-Through Certificates, Series 2006-4TS, Class A, 5.40%, 12/13/28(b)			8,198		8,118,387
GS Mortgage Securities Corp. II, Series 2013- GC10, Class A4, 2.68%, 02/10/46			3,644		3,677,116
GS Mortgage Securities Corp. Trust(b):
Series 2012-ALOH, Class A, 3.55%, 04/10/34			17,000		16,854,790
Series 2019-SOHO, Class A, 1.60%, 06/15/36(e)			12,154		11,493,357
Series 2019-SOHO, Class C, 2.00%, 06/15/36(e)			8,815		8,288,895
GS Mortgage Securities Trust:
Series 2011-GC5, Class AS, 5.21%, 08/10/44(b)(e)			8,891		9,058,762
Series 2012-GC6, Class A3, 3.48%, 01/10/45			11,008		11,154,584
Series 2013-GC13, Class AAB, 3.72%, 07/10/46(e)			5,244		5,362,248
Series 2013-GC14, Class A3, 3.53%, 08/10/46			533		532,795
Series 2014-GC24, Class AAB, 3.65%, 09/10/47			8,543		8,816,279

SCHEDULES OF INVESTMENTS 83

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2015-GS1, Class A3, 3.73%, 11/10/48	USD		5,900	$	6,337,634
Series 2019-GC38, Class A2, 3.87%, 02/10/52			8,134		8,580,917
Hawaii Hotel Trust, Series 2019-MAUI, Class A, 1.85%, 05/15/38(b)(e)			9,675		7,918,825
JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class ASB, 3.66%, 09/15/47			6,036		6,210,150
JPMCC Commercial Mortgage Securities Trust, Series 2017-JP6, Class A3, 3.11%, 07/15/50			17,260		17,628,283
JPMorgan Chase Commercial Mortgage Securities Trust(b):
Series 2012-HSBC, Class A, 3.09%, 07/05/32			15,918		15,839,255
Series 2012-HSBC, Class D, 4.52%, 07/05/32(e)			6,490		6,392,395
Series 2018-WPT, Class AFX, 4.25%, 07/05/33			7,070		7,201,631
Series 2019-BKWD, Class A, 1.70%, 09/15/29(e)			1,864		1,732,352
KNDL Mortgage Trust(b)(e):
Series 2019-KNSQ, Class A, 1.50%, 05/15/36			9,012		8,203,893
Series 2019-KNSQ, Class D, 2.05%, 05/15/36			2,972		2,409,198
LMREC, Inc., Series 2015-CRE1, Class AR, 1.91%, 02/22/32(b)(e)			237		230,238
Madison Avenue Trust, Series 2013-650M, Class A, 3.84%, 10/12/32(b)			16,255		16,058,043
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2013-C13, Class A4, 4.04%, 11/15/46			11,900		12,398,153
Series 2013-C9, Class AAB, 2.66%, 05/15/46			3,687		3,699,347
Series 2014-C15, Class A4, 4.05%, 04/15/47			9,800		10,242,107
Series 2014-C18, Class ASB, 3.62%, 10/15/47			9,139		9,394,258
Series 2014-C19, Class ASB, 3.33%, 12/15/47			7,561		7,804,763
Series 2016-C30, Class ASB, 2.73%, 09/15/49			14,735		15,033,680
Morgan Stanley Capital I Trust:
Series 2007-T27, Class AJ, 5.95%, 06/11/42(e)			4,470		4,461,212
Series 2012-C4, Class A4, 3.24%, 03/15/45			12,941		13,019,115
Series 2014-CPT, Class A, 3.35%, 07/13/29(b)			11,100		10,932,690
Series 2014-MP, Class A, 3.47%, 08/11/33(b)			4,215		4,230,156
Series 2018-BOP, Class A, 1.55%, 08/15/33(b)(e)			3,810		3,564,687
Series 2018-H4, Class A4, 4.31%, 12/15/51			5,666		6,446,615
Series 2019-NUGS, Class D, 3.30%, 12/15/36(b)(e)			8,000		7,562,565
Series 2019-NUGS, Class E, 3.74%, 12/15/36(b)(e)			1,000		959,916
Natixis Commercial Mortgage Securities Trust, Series 2018-FL1, Class A, 2.61%, 06/15/35(b)(e)			6,082		5,663,110
PFP Ltd., Series 2019-5, Class A, 1.67%, 04/14/36(b)(e)			6,851		6,235,179
UBS Commercial Mortgage Trust:
Series 2012-C1, Class A3, 3.40%, 05/10/45			4,131		4,168,411
Series 2019-C18, Class A4, 3.04%, 12/15/52			7,873		7,888,071

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
UBS-Barclays Commercial Mortgage Trust:
Series 2013-C5, Class AS, 3.35%, 03/10/46(b)	USD		9,713	$	9,640,018
Series 2013-C6, Class ASB, 2.79%, 04/10/46			4,588		4,625,399
Velocity Commercial Capital Loan Trust(b):
Series 2018-1, Class A, 3.59%, 04/25/48			1,349		1,352,287
Series 2019-3, Class A, 3.03%, 10/25/49(e)			5,948		5,385,990
VNDO Mortgage Trust, Series 2012-6AVE, Class A, 3.00%, 11/15/30(b)			17,397		17,313,437
Wells Fargo Commercial Mortgage Trust:
Series 2014-LC16, Class ASB, 3.48%, 08/15/50			9,836		10,118,410
Series 2015-C28, Class ASB, 3.31%, 05/15/48			5,236		5,370,854
Series 2015-LC22, Class ASB, 3.57%, 09/15/58			8,810		9,165,716
WFRBS Commercial Mortgage Trust:
Series 2011-C5, Class A4, 3.67%, 11/15/44			28,430		28,867,507
Series 2012-C10, Class ASB, 2.45%, 12/15/45			11,583		11,629,573
Series 2012-C6, Class A4, 3.44%, 04/15/45			1,942		1,955,645
Series 2014-C21, Class ASB, 3.39%, 08/15/47			12,647		12,897,765
Series 2014-C21, Class ASBF, 1.36%, 08/15/47(b)(e)			3,272		3,289,791
Series 2014-C24, Class ASB, 3.32%, 11/15/47			9,593		9,803,052
					945,864,684
Interest Only Commercial Mortgage-Backed Securities — 0.0%
Commercial Mortgage Trust, Series 2015-CR23, Class XA, 0.92%, 05/10/48(e)			34,668		1,160,504
Total Non-Agency Mortgage-Backed Securities — 17.0% (Cost: $1,164,782,300)					1,133,057,297
U.S. Government Sponsored Agency Securities — 11.7%
Collateralized Mortgage Obligations — 1.2%
Federal Home Loan Mortgage Corp.:
Series 1165, Class LD, 7.00%, 11/15/21			17		17,448
Series 3710, Class MG, 4.00%, 08/15/25(a)			767		821,653
Series 3959, Class MA, 4.50%, 11/15/41			1,920		2,110,394
Series 3986, Class M, 4.50%, 09/15/41			2,371		2,547,809
Series 4459, Class BN, 3.00%, 08/15/43			8,600		9,157,708
Series 4569, Class JA, 3.00%, 03/15/42			12,261		12,693,114
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Variable Rate Notes, Series 2017-DNA2, Class M1, (LIBOR USD 1 Month + 1.20%), 2.15%, 10/25/29(c)			10,723		10,441,233
Federal National Mortgage Association:
Series 2011-48, Class MG, 4.00%, 06/25/26(a)			1,471		1,572,961
Series 2011-84, Class MG, 4.00%, 09/25/26(a)			1,938		2,043,317
Series 2014-48, Class AB, 4.00%, 10/25/40			5,294		5,480,306
Federal National Mortgage Association Variable Rate Notes:
Series 1997-20, Class FB, 2.54%, 03/25/27(e)			75		75,236
Series 2017-C02, Class 2M1, (LIBOR USD 1 Month + 1.15%), 2.10%, 09/25/29(c)			227		226,366
Series 2017-C04, Class 2M1, (LIBOR USD 1 Month + 0.85%), 1.80%, 11/25/29(c)			1,456		1,442,652

84 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Collateralized Mortgage Obligations (continued)
Freddie Mac STACR Trust 2019-FTR2 Variable Rate Notes, Series 2019-FTR2, Class M1, (LIBOR USD 1 Month + 0.95%), 1.90%, 11/25/48(b)(c)	USD		1,138	$	1,108,893
Government National Mortgage Association:
Series 2013-131, Class PA, 3.50%, 06/16/42			4,629		4,893,765
Series 2018-36, Class AM, 3.00%, 07/20/45			24,688		26,000,354
					80,633,209
Commercial Mortgage-Backed Securities — 0.2%
Federal Home Loan Mortgage Corp., Series KJ05, Class A2, 2.16%, 10/25/21			6,687		6,791,474
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Series KIR2, Class A1, 2.75%, 03/25/27			7,143		7,368,476
					14,159,950
Interest Only Commercial Mortgage-Backed Securities — 0.0%(e)
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes, Series K718, Class X1, 0.61%, 01/25/22			11,683		95,128
Government National Mortgage Association Variable Rate Notes, Series 2012-120, 0.77%, 02/16/53			22,994		1,004,330
					1,099,458
Mortgage-Backed Securities — 10.3%
Federal Home Loan Mortgage Corp.:
2.50%, 11/01/27			15,935		16,648,804
4.00%, 02/01/34 - 03/01/34			27,201		28,941,044
4.50%, 07/01/47 - 03/01/49			102,560		113,561,662
Federal Home Loan Mortgage Corp. Variable Rate Notes, (LIBOR USD 12 Month + 1.63%), 2.94%, 10/01/45(c)			3,463		3,538,862
Federal National Mortgage Association Variable Rate Notes(c):
(LIBOR USD 12 Month + 1.60%), 2.85%, 09/01/45			8,267		8,441,005
(LIBOR USD 12 Month + 1.59%), 2.92%, 11/01/45			687		702,305
(LIBOR USD 12 Month + 1.59%), 3.14%, 06/01/45			10,270		10,629,326
(LIBOR USD 12 Month + 1.73%), 3.29%, 09/01/42			6,853		6,972,556
Uniform Mortgage-Backed Securities:
2.50%, 12/01/27 - 04/01/32			47,843		49,690,883
3.00%, 12/01/26 - 04/01/33			63,427		66,659,504
3.50%, 04/01/34			4,190		4,468,729
4.00%, 04/01/26 - 05/01/34			118,294		125,000,337
4.00%, 04/25/50(f)			144,270		153,851,973
4.50%, 03/01/47 - 04/01/49			85,984		94,349,868
5.00%, 04/01/21			—(g)		137
5.50%, 06/01/20 - 10/01/21			83		84,010
6.50%, 04/01/21			6		6,064
					683,547,069
Total U.S. Government Sponsored Agency Securities — 11.7% (Cost: $759,182,863)					779,439,686
U.S. Treasury Obligations — 5.2%
U.S. Treasury Inflation Linked Notes:
0.13%, 10/15/24			71,097		71,964,005
0.25%, 07/15/29			62,760		65,162,460
U.S. Treasury Notes:
1.50%, 01/15/23			56,600		58,536,781

Security		Par (000)		Value
U.S. Treasury Obligations (continued)
1.38%, 02/15/23	USD		145,000	$	149,593,555
Total U.S. Treasury Obligations — 5.2% (Cost: $339,498,086)					345,256,801
Total Long-Term Investments — 95.3% (Cost: $6,503,561,185)					6,338,571,410
Short-Term Securities — 5.8%
Commercial Paper — 1.9%(h)
BAT International Finance plc, 1.95%, 04/01/20			20,000		19,998,367
Boeing Co. (The), 2.19%, 11/18/20			45,000		43,335,400
General Electric Co., 2.27%, 04/01/20			19,000		18,998,701
Nissan Motor Acceptance Corp., 2.22%, 06/12/20			35,000		34,765,792
TELUS Corp., 1.81%, 05/08/20			11,250		11,210,812
Total Commercial Paper — 1.9% (Cost: $129,454,375)					128,309,072
Foreign Government Obligations — 0.4%
Egypt — 0.0%
Arab Republic of Egypt Treasury Bills, 13.80%, 05/26/20(h)	EGP		18,275		1,135,987
Mexico — 0.4%
Mexico Cetes, 5.93%, 04/02/20(h)	MXN		50,990		21,474,308
Total Foreign Government Obligations — 0.4% (Cost: $27,549,637)					22,610,295
		Shares
Money Market Funds — 3.5%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 0.21%(i)*			232,450,117		232,450,117
Total Money Market Funds — 3.5% (Cost: $232,450,117)					232,450,117
Total Short-Term Securities — 5.8% (Cost: $389,454,129)					383,369,484
Total Options Purchased — 0.0% (Cost: $6,167,612)					8,134,570
Total Investments Before Options Written and TBA Sale Commitments — 101.1% (Cost: $6,899,182,926)					6,730,075,464
Total Options Written — (0.3)% (Premium Received — $13,713,361)					(25,967,179)

SCHEDULES OF INVESTMENTS 85

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
TBA Sale Commitments — (2.3)%
Mortgage-Backed Securities — (2.3)%
Uniform Mortgage-Backed Securities, 4.00%, 04/25/50(f)	USD		144,270	$	(153,851,974	)
Total TBA Sale Commitments — (2.3)% (Proceeds: $151,235,536)					(153,851,974	)
Total Investments Net of Options Written and TBA Sale Commitments — 98.5% (Cost: $6,734,234,029)					6,550,256,311
Other Assets Less Liabilities — 1.5%					100,133,205
Net Assets — 100.0%				$	6,650,389,516

^(a)  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.

^(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 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.

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

^(e)  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.

^(f)  Represents or includes a TBA transaction.

^(g)  Amount is less than 500.

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

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

* Investments in issuers considered to be an affiliate/affiliates of the Fund during the six months ended March 31, 2020 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Par/Shares Held at 09/30/19	Shares Purchased	Shares Sold	Par/Shares Held at 03/31/20		Value at 03/31/20		Income		Net Realized     Gain (Loss)	(a)		Change in Unrealized Appreciation  (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class(b)	47,697,236	184,752,881	—	232,450,117	$	232,450,117	$	882,192	$	33		$	—
BlackRock Capital Finance LP, Series 1997-R2, Class AP	18,554	—	—	18,554		17,075		732		—			266
iShares iBoxx $ High Yield Corporate Bond ETF	—	575,000	—	575,000		44,315,250		218,491		—			(5,190,564	)
iShares Short Maturity Bond ETF	3,180,000	—	—	3,180,000		154,198,200		1,964,572		—			(5,883,000	)
					$	430,980,642	$	3,065,987	$	33		$	(11,073,298	)

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

^(b)  Represents net shares purchased (sold).

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

86 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio

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		34		06/19/20	$	6,088	$	(18,121)
U.S. Treasury 2 Year Note		13,171		06/30/20		2,902,662		30,035,224
								30,017,103
Short Contracts
Euro-Bobl		1,472		06/08/20		219,509		2,066,051
Euro-Bund		24		06/08/20		4,566		67,572
Euro-Schatz		810		06/08/20		100,225		149,865
Canada 10 Year Bond		420		06/19/20		43,913		(287,747)
U.S. Treasury 10 Year Note		684		06/19/20		94,862		(2,705,139)
U.S. Treasury 10 Year Ultra Note		1,067		06/19/20		166,485		(4,195,516)
U.S. Treasury Ultra Bond		43		06/19/20		9,541		(1,016,893)
U.S. Treasury 5 Year Note		3,969		06/30/20		497,551		(5,740,039)
								(11,661,846)
							$	18,355,257

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	25,987,161	MXN	509,900,000	Natwest Markets plc		04/02/20	$	4,492,799
GBP	971,000	USD	1,204,079	JPMorgan Chase Bank NA		04/03/20		2,015
USD	229,325,772	EUR	204,951,000	Goldman Sachs International		04/03/20		3,278,872
USD	1,125,562	EUR	988,000	Morgan Stanley & Co. International plc		04/03/20		35,866
USD	4,159,179	EUR	3,715,000	State Street Bank and Trust Co.		04/03/20		61,789
USD	419,603	GBP	325,000	Citibank NA		04/03/20		15,916
USD	833,175	GBP	646,000	Natwest Markets plc		04/03/20		30,768
EUR	121,013,000	USD	133,580,382	Barclays Bank plc		05/05/20		64,440
USD	34,016,883	CAD	47,796,000	State Street Bank and Trust Co.		05/05/20		40,528
USD	579,140,991	EUR	524,202,000	UBS AG		05/05/20		220,688
JPY	1,955,186,334	NZD	29,360,000	Morgan Stanley & Co. International plc		06/17/20		734,879
USD	35,860,000	CAD	49,924,292	Bank of America NA		06/17/20		358,802
USD	18,120,000	CAD	25,104,323	HSBC Bank plc		06/17/20		268,299
USD	17,930,000	CAD	24,882,088	Toronto Dominion Bank		06/17/20		236,330
USD	18,180,000	JPY	1,903,887,955	JPMorgan Chase Bank NA		06/17/20		415,366
								10,257,357
EUR	82,676,000	USD	92,544,009	Goldman Sachs International		04/03/20		(1,358,050)
EUR	524,202,000	USD	578,352,067	UBS AG		04/03/20		(193,203)
USD	448,746,790	EUR	408,139,000	UBS AG		04/03/20		(1,402,543)
USD	1,204,982	GBP	971,000	JPMorgan Chase Bank NA		05/05/20		(1,996)
CAD	49,738,464	USD	35,860,000	Citibank NA		06/17/20		(490,945)
CAD	50,208,040	USD	36,050,000	JPMorgan Chase Bank NA		06/17/20		(347,029)
JPY	1,908,847,278	USD	18,180,000	Goldman Sachs International		06/17/20		(369,092)
NZD	29,360,000	JPY	1,890,784,000	JPMorgan Chase Bank NA		06/17/20		(133,959)
								(4,296,817)
Net Unrealized Appreciation							$	5,960,540

SCHEDULES OF INVESTMENTS 87

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio

Exchange-Traded Options Purchased

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
U.S. Treasury 10 Year Note		242		04/24/20	USD	133.00	USD	24,200	$	1,395,281
Put
U.S. Treasury 10 Year Note		197		04/24/20	USD	134.00	USD	19,700		21,547
									$	1,416,828

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Call

10-Year Interest Rate Swap(a)

3 month LIBOR

Quarterly

0.95%

Semi-Annual

Bank of America NA

09/03/20

0.95

%

USD

23,740

$

842,595

10-Year Interest Rate Swap(a)

3 month LIBOR

Quarterly

1.21%

Semi-Annual

Goldman Sachs Bank USA

02/28/22

1.21

USD

22,140

1,342,558

10-Year Interest Rate Swap(a)

3 month LIBOR

Quarterly

1.49%

Semi-Annual

Citibank NA

02/25/25

1.49

USD

14,560

1,233,417

10-Year Interest Rate Swap(a)

3 month LIBOR

Quarterly

2.07%

Semi-Annual

JPMorgan Chase Bank NA

01/17/40

2.07

USD

11,730

1,614,838

5,033,408

Put

2-Year Interest Rate Swap(a)

0.01%

Annual

6 month EURIBOR

Semi-Annual

JPMorgan Chase Bank NA

06/22/20

0.01

EUR

173,838

11,814

2-Year Interest Rate Swap(a)

0.01%

Annual

6 month EURIBOR

Semi-Annual

Bank of America NA

06/23/20

0.01

EUR

65,211

4,475

2-Year Interest Rate Swap(a)

0.00%

Annual

6 month EURIBOR

Semi-Annual

Bank of America NA

06/24/20

—

EUR

65,211

4,498

2-Year Interest Rate Swap(a)

0.00%

Annual

6 month EURIBOR

Semi-Annual

Bank of America NA

06/26/20

—

EUR

65,210

4,537

10-Year Interest Rate Swap(a)

1.24%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

08/27/20

1.24

USD

31,650

158,020

10-Year Interest Rate Swap(a)

1.21%

Semi-Annual

3 month LIBOR

Quarterly

Goldman Sachs Bank USA

02/28/22

1.21

USD

22,140

485,448

10-Year Interest Rate Swap(a)

1.49%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/25/25

1.49

USD

14,560

489,284

10-Year Interest Rate Swap(a)

2.07%

Semi-Annual

3 month LIBOR

Quarterly

JPMorgan Chase Bank NA

01/17/40

2.07

USD

11,730

526,258

1,684,334

$

6,717,742

^(a)  Forward settling swaption.

Exchange-Traded Options Written

Description

Number of Contracts

Expiration Date

Exercise Price

Notional Amount (000)

Value

Call

U.S. Treasury 10 Year Note

242

04/24/20

USD

134.00

USD

24,200

$

(1,160,844

)

OTC Interest Rate Swaptions Written

Description

Paid by the Fund

Received by the Fund

Exercise Rate

Notional Amount (000)

Value

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Call

10-Year Interest Rate Swap(a)

3 month LIBOR

Quarterly

1.70%

Semi-Annual

Citibank NA

10/23/20

1.70

%

USD

64,060

$

(6,316,994

)

10-Year Interest Rate Swap(a)

3 month LIBOR

Quarterly

1.58%

Semi-Annual

Barclays Bank plc

10/27/20

1.58

USD

57,590

(5,010,635

)

88 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio

OTC Interest Rate Swaptions Written (continued)

Description	Paid by the Fund			Received by the Fund
	Rate		Frequency	Rate		Frequency	Counterparty	Expiration Date		Exercise Rate			Notional Amount (000)		Value
2-Year Interest Rate Swap(a)		3 month LIBOR	Quarterly		1.45%	Semi-Annual	Bank of America NA		01/25/21		1.45	%	USD	145,610	$	(3,240,281	)
10-Year Interest Rate Swap(a)		3 month LIBOR	Quarterly		1.65%	Semi-Annual	JPMorgan Chase Bank NA		01/18/22		1.65		USD	49,450		(4,587,036	)
10-Year Interest Rate Swap(a)		3 month LIBOR	Quarterly		1.45%	Semi-Annual	Morgan Stanley & Co. International plc		01/28/22		1.45		USD	24,630		(1,904,367	)
5-Year Interest Rate Swap(a)		3 month LIBOR	Quarterly		1.25%	Semi-Annual	Barclays Bank plc		02/28/22		1.25		USD	42,980		(1,530,521	)
																(22,589,834	)
Put
2-Year Interest Rate Swap(a)		1.05%	Semi-Annual		3 month LIBOR	Quarterly	Goldman Sachs Bank USA		10/02/20		1.05		USD	134,880		(500	)
2-Year Interest Rate Swap(a)		1.00%	Semi-Annual		3 month LIBOR	Quarterly	Deutsche Bank AG		10/05/20		1.00		USD	61,435		(428	)
10-Year Interest Rate Swap(a)		1.70%	Semi-Annual		3 month LIBOR	Quarterly	Citibank NA		10/23/20		1.70		USD	64,060		(119,711	)
10-Year Interest Rate Swap(a)		1.58%	Semi-Annual		3 month LIBOR	Quarterly	Barclays Bank plc		10/27/20		1.58		USD	57,590		(157,160	)
2-Year Interest Rate Swap(a)		0.00%	Annual		6 month EURIBOR	Semi-Annual	Bank of America NA		01/18/21		—		EUR	366,950		(176,186	)
2-Year Interest Rate Swap(a)		1.45%	Semi-Annual		3 month LIBOR	Quarterly	Bank of America NA		01/25/21		1.45		USD	145,610		(537	)
10-Year Interest Rate Swap(a)		2.15%	Semi-Annual		3 month LIBOR	Quarterly	JPMorgan Chase Bank NA		01/18/22		2.15		USD	49,450		(212,303	)
10-Year Interest Rate Swap(a)		1.95%	Semi-Annual		3 month LIBOR	Quarterly	Morgan Stanley & Co. International plc		01/28/22		1.95		USD	24,630		(154,240	)
10-Year Interest Rate Swap(a)		1.85%	Semi-Annual		3 month LIBOR	Quarterly	Bank of America NA		02/22/22		1.85		USD	33,900		(263,912	)
5-Year Interest Rate Swap(a)		1.25%	Semi-Annual		3 month LIBOR	Quarterly	Barclays Bank plc		02/28/22		1.25		USD	42,980		(269,674	)
10-Year Interest Rate Swap(a)		1.60%	Semi-Annual		3 month LIBOR	Quarterly	Deutsche Bank AG		02/28/22		1.60		USD	15,890		(189,857	)
10-Year Interest Rate Swap(a)		1.60%	Semi-Annual		3 month LIBOR	Quarterly	Deutsche Bank AG		03/03/22		1.60		USD	15,890		(190,872	)
10-Year Interest Rate Swap(a)		1.60%	Semi-Annual		3 month LIBOR	Quarterly	Barclays Bank plc		03/04/22		1.60		USD	15,433		(185,591	)
10-Year Interest Rate Swap(a)		1.60%	Semi-Annual		3 month LIBOR	Quarterly	Deutsche Bank AG		03/04/22		1.60		USD	24,575		(295,530	)
																(2,216,501	)
															$	(24,806,335	)

^(a)  Forward settling swaption.

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.34.V1	5.00	%	Quarterly	06/20/25	B-		USD141,000		$	(8,817,200	)	$	(6,494,462	)	$	(2,322,738	)

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

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

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

3 month LIBOR

Quarterly

0.68%

Semi-Annual

N/A

03/06/22

USD

12,200

$

57,362

$

—

$

57,362

(0.30)%

Annual

6 month EURIBOR

Semi-Annual

N/A

03/23/22

EUR

5,380

(4,526)

—

(4,526)

6 month EURIBOR

Semi-Annual

(0.25)%

Annual

06/24/20

(a)

06/24/22

EUR

15,089

24,251

—

24,251

SCHEDULES OF INVESTMENTS 89

Schedule��of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio

Centrally Cleared Interest Rate Swaps (continued)

Paid by the Fund		Received by the Fund
				Effective Date			Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
6 month EURIBOR	Semi-Annual	(0.29)%	Annual		06/25/20	(a)		06/25/22	EUR	5,660	$	4,059	$	—	$	4,059
6 month EURIBOR	Semi-Annual	(0.28)%	Annual		06/26/20	(a)		06/26/22	EUR	5,660		5,318		—		5,318
6 month EURIBOR	Semi-Annual	(0.28)%	Annual		06/30/20	(a)		06/30/22	EUR	5,660		5,953		—		5,953
3 month LIBOR	Quarterly	0.44%	Semi-Annual		09/11/20	(a)		09/11/22	USD	6,486		14,893		—		14,893
3 month LIBOR	Quarterly	0.44%	Semi-Annual		09/11/20	(a)		09/11/22	USD	6,022		14,008		—		14,008
3 month LIBOR	Quarterly	0.46%	Semi-Annual		09/11/20	(a)		09/11/22	USD	6,022		16,899		—		16,899
3 month LIBOR	Quarterly	0.51%	Semi-Annual		09/11/20	(a)		09/11/22	USD	9,270		34,541		—		34,541
3 month LIBOR	Quarterly	0.38%	Semi-Annual		09/28/20	(a)		09/28/22	USD	21,400		25,706		—		25,706
3 month LIBOR	Quarterly	0.34%	Semi-Annual		09/29/20	(a)		09/29/22	USD	35,180		15,511		—		15,511
3 month LIBOR	Quarterly	0.36%	Semi-Annual		09/29/20	(a)		09/29/22	USD	8,180		5,403		—		5,403
3 month LIBOR	Quarterly	0.43%	Semi-Annual		09/29/20	(a)		09/29/22	USD	16,040		33,817		—		33,817
3 month LIBOR	Quarterly	1.05%	Semi-Annual		03/01/21	(a)		03/01/23	USD	18,940		267,968		—		267,968
3 month LIBOR	Quarterly	1.06%	Semi-Annual		03/01/21	(a)		03/01/23	USD	18,940		269,479		—		269,479
3 month LIBOR	Quarterly	1.07%	Semi-Annual		03/01/21	(a)		03/01/23	USD	18,990		274,549		—		274,549
3 month LIBOR	Quarterly	1.10%	Semi-Annual		03/01/21	(a)		03/01/23	USD	75,820		1,139,296		—		1,139,296
3 month LIBOR	Quarterly	0.88%	Semi-Annual		03/02/21	(a)		03/02/23	USD	38,010		406,396		—		406,396
3 month LIBOR	Quarterly	0.88%	Semi-Annual		03/02/21	(a)		03/02/23	USD	18,990		202,849		—		202,849
3 month LIBOR	Quarterly	0.90%	Semi-Annual		03/02/21	(a)		03/02/23	USD	18,990		212,891		—		212,891
0.61%	Semi-Annual	3 month LIBOR	Quarterly		03/22/21	(a)		03/22/23	USD	32,240		(170,362)		—		(170,362)
(0.17)%	Annual	6 month EURIBOR	Semi-Annual		03/24/21	(a)		03/24/23	EUR	27,850		(82,818)		—		(82,818)
(0.18)%	Annual	6 month EURIBOR	Semi-Annual		03/24/21	(a)		03/24/23	EUR	28,010		(76,274)		—		(76,274)
(0.18)%	Annual	6 month EURIBOR	Semi-Annual		03/24/21	(a)		03/24/23	EUR	27,850		(78,949)		—		(78,949)
3 month LIBOR	Quarterly	1.56%	Semi-Annual		N/A			01/31/30	USD	4,190		341,993		—		341,993
3 month LIBOR	Quarterly	1.51%	Semi-Annual		N/A			02/03/30	USD	4,190		322,007		—		322,007
3 month LIBOR	Quarterly	1.52%	Semi-Annual		N/A			02/03/30	USD	4,190		326,956		—		326,956
3 month LIBOR	Quarterly	1.52%	Semi-Annual		N/A			02/03/30	USD	4,190		327,575		—		327,575
3 month LIBOR	Quarterly	1.58%	Semi-Annual		N/A			02/11/30	USD	3,920		330,019		—		330,019
3 month LIBOR	Quarterly	1.54%	Semi-Annual		N/A			02/12/30	USD	773		61,581		—		61,581
3 month LIBOR	Quarterly	1.48%	Semi-Annual		N/A			02/24/30	USD	3,948		294,292		—		294,292
3 month LIBOR	Quarterly	1.43%	Semi-Annual		N/A			02/25/30	USD	7,865		546,910		—		546,910
3 month LIBOR	Quarterly	1.32%	Semi-Annual		N/A			02/26/30	USD	7,825		457,832		—		457,832
1.31%	Semi-Annual	3 month LIBOR	Quarterly		N/A			02/27/30	USD	15,680		(907,997)		—		(907,997)
3 month LIBOR	Quarterly	1.24%	Semi-Annual		N/A			03/02/30	USD	7,840		399,101		—		399,101
3 month LIBOR	Quarterly	1.24%	Semi-Annual		N/A			03/02/30	USD	4,900		251,125		—		251,125
3 month LIBOR	Quarterly	0.50%	Semi-Annual		N/A			03/11/30	USD	9,830		(192,108)		—		(192,108)
3 month LIBOR	Quarterly	0.71%	Semi-Annual		N/A			03/25/30	USD	13,060		(4,485)		—		(4,485)
3 month LIBOR	Quarterly	0.73%	Semi-Annual		04/15/20	(a)		04/15/30	USD	3,690		7,315		—		7,315
3 month LIBOR	Quarterly	0.62%	Semi-Annual		05/04/20	(a)		05/04/30	USD	5,400		(48,346)		—		(48,346)
3 month LIBOR	Quarterly	1.02%	Semi-Annual		09/08/20	(a)		09/08/30	USD	10,635		319,022		—		319,022
1.11%	Semi-Annual	3 month LIBOR	Quarterly		03/08/22	(a)		03/08/32	USD	6,940		(196,212)		—		(196,212)
1.00%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/20/50	USD	1,250		(34,531)		—		(34,531)
											$	5,220,269	$	—	$	5,220,269

^(a)  Forward swap.

90 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration 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	2,086	$	(2,120	)	$	1,032		$	(3,152	)
United Mexican States		1.00			Quarterly	Bank of America NA		09/20/20	USD	2,086		(2,540	)		2,940			(5,480	)
Allstate Corp. (The)		1.00			Quarterly	Morgan Stanley & Co. International plc		06/20/24	USD	7,000		(261,277	)		(221,666	)		(39,611	)
Lowe’s Cos., Inc.		1.00			Quarterly	Morgan Stanley & Co. International plc		06/20/24	USD	7,000		(176,703	)		(166,526	)		(10,177	)
Northrop Grumman Systems Corp		1.00			Quarterly	Morgan Stanley & Co. International plc		06/20/24	USD	7,000		(235,766	)		(215,530	)		(20,236	)
Pfizer, Inc.		1.00			Quarterly	Morgan Stanley & Co. International plc		06/20/24	USD	7,000		(226,739	)		(200,962	)		(25,777	)
TWDC Enterprises 18 Corp.		1.00			Quarterly	BNP Paribas SA		06/20/24	USD	3,355		(53,172	)		(107,261	)		54,089
TWDC Enterprises 18 Corp.		1.00			Quarterly	BNP Paribas SA		06/20/24	USD	2,858		(45,295	)		(93,453	)		48,158
Financial Guaranty Insurance Company		1.00			Quarterly	JPMorgan Chase Bank NA		12/20/24	USD	1,500		7,982			43,449			(35,467	)
											$	(995,630	)	$	(957,977	)	$	(37,653	)

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund		Payment Frequency	Counterparty	Termination Date	Credit     Rating (a)	Notional     Amount     (000) (b)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States	1.00	%	Quarterly	Bank of America NA	06/20/20	BBB	USD	2,086	$	2,119		$	(1,163	)	$	3,282
United Mexican States	1.00		Quarterly	JPMorgan Chase Bank NA	09/20/20	BBB	USD	2,086		2,540			(2,616	)		5,156
Boeing Co. (The)	1.00		Quarterly	BNP Paribas SA	12/20/20	BBB	USD	25,000		(616,406	)		130,388			(746,794	)
Financial Guaranty Insurance Company	1.00		Quarterly	Citibank NA	06/20/24	BBB-	USD	15,005		(1,105,283	)		(970,274	)		(135,009	)
International Business Machines Corp.	1.00		Quarterly	JPMorgan Chase Bank NA	06/20/24	A	USD	20,000		545,369			457,539			87,830
International Business Machines Corp.	1.00		Quarterly	BNP Paribas SA	12/20/24	A	USD	4,338		118,942			113,640			5,302
International Business Machines Corp.	1.00		Quarterly	BNP Paribas SA	12/20/24	A	USD	4,399		120,605			119,231			1,374
International Business Machines Corp.	1.00		Quarterly	BNP Paribas SA	12/20/24	A	USD	5,205		142,728			145,931			(3,203	)
International Business Machines Corp.	1.00		Quarterly	Goldman Sachs International	12/20/24	A	USD	5,205		142,729			158,265			(15,536	)
International Business Machines Corp.	1.00		Quarterly	Morgan Stanley & Co. International plc	12/20/24	A	USD	2,098		57,531			62,121			(4,590	)
Verizon Communications, Inc.	1.00		Quarterly	BNP Paribas SA	12/20/24	BBB+	USD	7,753		(40,219	)		160,170			(200,389	)
									$	(629,345	)	$	373,232		$	(1,002,577	)

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

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

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		1.45	%
6 month EURIBOR	Euro Interbank Offered Rate		(0.29	)

SCHEDULES OF INVESTMENTS 91

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio

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)	$	—	$	(6,494,462	)	$	7,016,877	$	(4,119,346	)	$	—
OTC Swaps		1,394,706		(1,979,451	)		205,191		(1,245,421	)		—
Options Written		N/A		N/A			5,636,066		(17,889,884	)		(25,967,179	)

^(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
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	32,318,712	$	—	$	32,318,712
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		10,257,357		—		—		10,257,357
Options purchased
Investments at value — unaffiliated(b)		—		—		—		—		8,134,570		—		8,134,570
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		—		—		—		7,016,877		—		7,016,877
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		1,599,897		—		—		—		—		1,599,897
	$	—	$	1,599,897	$	—	$	10,257,357	$	47,470,159	$	—	$	59,327,413
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		13,963,455		—		13,963,455
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		4,296,817		—		—		4,296,817
Options written
Options written at value		—		—		—		—		25,967,179		—		25,967,179
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		2,322,738		—		—		1,796,608		—		4,119,346
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		3,224,872		—		—		—		—		3,224,872
	$	—	$	5,547,610	$	—	$	4,296,817	$	41,727,242	$	—	$	51,571,669

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

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

92 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration Bond Portfolio

For the six months ended March 31, 2020, the effect of derivative financial instruments in the Statements of Operations was as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—	$	(23,109,334	)	$	—	$	(23,109,334	)
Forward foreign currency exchange contracts		—		—			—		6,538,598		—			—		6,538,598
Options purchased(a)		—		—			—		—		27,707			—		27,707
Options written		—		—			—		—		492,495			—		492,495
Swaps		—		(26,616,961	)		—		—		(7,836,928	)		—		(34,453,889	)
	$	—	$	(26,616,961	)	$	—	$	6,538,598	$	(30,426,060	)	$	—	$	(50,504,423	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			—		—		21,772,236			—		21,772,236
Forward foreign currency exchange contracts		—		—			—		3,326,018		—			—		3,326,018
Options purchased(b)		—		—			—		—		1,966,958			—		1,966,958
Options written		—		—			—		—		(12,253,818	)		—		(12,253,818	)
Swaps		—		(2,564,766	)		—		—		5,573,620			—		3,008,854
	$	—	$	(2,564,766	)	$	—	$	3,326,018	$	17,058,996		$	—	$	17,820,248

^(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	$	3,383,458,599
Average notional value of contracts — short		1,253,006,903
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		1,284,193,156
Average amounts sold — in USD		447,885,269
Options:
Average value of option contracts purchased		708,414
Average value of option contracts written		580,422
Average notional value of swaption contracts purchased		279,869,233
Average notional value of swaption contracts written		737,676,079
Credit default swaps:
Average notional value — buy protection		166,843,609
Average notional value — sell protection		204,512,990
Interest rate swaps:
Average notional value — pays fixed rate		172,418,681
Average notional value — receives fixed rate		327,793,768

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	1,338,754		$	509,688
Forward foreign currency exchange contracts		10,257,357			4,296,817
Options(a)		8,134,570			25,967,179
Swaps — Centrally cleared		—			2,176,521
Swaps — OTC(b)		1,599,897			3,224,872
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	21,330,578		$	36,175,077
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(2,755,582	)		(3,847,053	)
Total derivative assets and liabilities subject to an MNA	$	18,574,996		$	32,328,024

^(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 93

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration 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)(c)
Bank of America NA	$	1,379,149	$	(1,379,149	)	$	—	$	—		$	—
Barclays Bank plc		64,440		(64,440	)		—		—			—
BNP Paribas SA		778,283		(778,283	)		—		—			—
Citibank NA		1,738,617		(1,738,617	)		—		—			—
Goldman Sachs Bank USA		1,828,006		(500	)		—		(1,640,000	)		187,506
Goldman Sachs International		3,437,137		(1,742,678	)		—		—			1,694,459
HSBC Bank plc		268,299		—			—		—			268,299
JPMorgan Chase Bank NA		3,165,297		(3,165,297	)		—		—			—
Morgan Stanley & Co. International plc		832,866		(832,866	)		—		—			—
Natwest Markets plc		4,523,567		—			—		—			4,523,567
State Street Bank and Trust Co.		102,317		—			—		—			102,317
Toronto Dominion Bank		236,330		—			—		—			236,330
UBS AG		220,688		(220,688	)		—		—			—
	$	18,574,996	$	(9,922,518	)	$	—	$	(1,640,000	)	$	7,012,478

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged(d)			Net Amount of Derivative Liabilities (c)(e)
Bank of America NA	$	3,687,559	$	(1,379,149	)	$	—	$	(2,308,410	)	$	—
Barclays Bank plc		7,153,581		(64,440	)		—		(7,089,141	)		—
BNP Paribas SA		1,151,100		(778,283	)		—		(372,817	)		—
Citibank NA		8,032,933		(1,738,617	)		—		(5,400,000	)		894,316
Deutsche Bank AG		676,687		—			—		(676,687	)		—
Goldman Sachs Bank USA		500		(500	)		—		—			—
Goldman Sachs International		1,742,678		(1,742,678	)		—		—			—
JPMorgan Chase Bank NA		5,323,558		(3,165,297	)		—		(2,158,261	)		—
Morgan Stanley & Co. International plc		2,963,682		(832,866	)		—		(2,130,816	)		—
UBS AG		1,595,746		(220,688	)		—		—			1,375,058
	$	32,328,024	$	(9,922,518	)	$	—	$	(20,136,132	)	$	2,269,374

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

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

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

94 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) March 31, 2020 BlackRock Low Duration 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	$	—		$	1,468,172,118		$	50,861,283	$	1,519,033,401
Corporate Bonds(a)		—			2,181,181,486			—		2,181,181,486
Foreign Agency Obligations(a)		—			63,268,406			—		63,268,406
Foreign Government Obligations(a)		—			103,918,075			—		103,918,075
Investment Companies		198,513,450			—			—		198,513,450
Municipal Bonds		—			14,902,808			—		14,902,808
Non-Agency Mortgage-Backed Securities		—			1,133,057,297			—		1,133,057,297
U.S. Government Sponsored Agency Securities		—			779,439,686			—		779,439,686
U.S. Treasury Obligations		—			345,256,801			—		345,256,801
Short-Term Securities:
Commercial Paper		—			128,309,072			—		128,309,072
Foreign Government Obligations(a)		—			22,610,295			—		22,610,295
Money Market Funds		232,450,117			—			—		232,450,117
Options Purchased:
Interest rate contracts		1,416,828			6,717,742			—		8,134,570
Liabilities:
Investments:
TBA Sale Commitments		—			(153,851,974	)		—		(153,851,974	)
	$	432,380,395		$	6,092,981,812		$	50,861,283	$	6,576,223,490
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—		$	205,191		$	—	$	205,191
Foreign currency exchange contracts		—			10,257,357			—		10,257,357
Interest rate contracts		32,318,712			7,016,877			—		39,335,589
Liabilities:
Credit contracts		—			(3,568,159	)		—		(3,568,159	)
Foreign currency exchange contracts		—			(4,296,817	)		—		(4,296,817	)
Interest rate contracts		(15,124,299	)		(26,602,943	)		—		(41,727,242	)
	$	17,194,413		$	(16,988,494	)	$	—	$	205,919

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

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

See notes to financial statements.

SCHEDULES OF INVESTMENTS 95

Statements of Assets and Liabilities  (unaudited)

March 31, 2020

	BlackRock Core Bond Portfolio		BlackRock High Yield Bond Portfolio(a)		BlackRock Low Duration Bond Portfolio
ASSETS
Investments at value — unaffiliated(b)(c)	$	4,203,767,522	$	14,251,633,969	$	6,299,094,822
Investments at value — affiliated(d)		461,409,601		1,938,863,354		430,980,642
Cash		834,159		—		—
Cash pledged:
Collateral — OTC derivatives		1,350,000		31,859,940		23,360,000
Futures contracts		19,539,520		22,476,000		12,889,000
Centrally cleared swaps		1,484,778		104,766,000		15,481,000
Foreign currency at value(e)		32,388,642		30,279,870		18,387,727
Receivables:
Investments sold		443,584,196		107,113,180		196,817,477
Securities lending income — affiliated		—		59,174		—
TBA sale commitments		322,318,664		—		151,235,536
Capital shares sold		12,790,807		857,418,922		30,758,832
Dividends — affiliated		284,837		398,567		100,700
Dividends — unaffiliated		1,419		58,932		5,064
Interest — unaffiliated		22,785,265		214,934,646		27,140,975
From the Manager		179,617		—		178,864
Variation margin on futures contracts		367,543		4,787,130		1,338,754
Variation margin on centrally cleared swaps		265,970		—		—
Swap premiums paid		1,265,972		203,380		1,394,706
Unrealized appreciation on:		—		—		—
Forward foreign currency exchange contracts		6,283,881		3,214,728		10,257,357
OTC swaps		544,300		3,362,783		205,191
Prepaid expenses		190,346		502,730		238,418
Other assets		—		43,311		—
Total assets		5,531,637,039		17,571,976,616		7,219,865,065
LIABILITIES
Bank overdraft		—		1,506,181		2,050,637
Cash received:
Collateral — OTC derivatives		4,770,000		630,000		1,640,000
Collateral — TBA commitments		17,073,000		—		467,000
Cash collateral on securities loaned at value		—		147,997,150		—
Options written at value(f)		—		32,087,424		25,967,179
TBA sale commitments at value(g)		325,588,268		—		153,851,974
Payables:
Investments purchased		1,285,552,725		1,635,147,643		335,981,803
Accounting services fees		80,011		303,475		137,090
Administration fees		122,567		653,996		213,003
Capital shares redeemed		11,676,222		180,492,561		33,311,127
Custodian fees		78,947		124,397		58,556
Income dividend distributions		1,218,250		9,708,194		1,901,190
Investment advisory fees		1,043,842		4,975,987		1,612,057
Trustees’ and Officer’s fees		2,054		40,124		15,605
Other affiliates		3,891		87,346		—
Printing fees		81,450		179,451		166,815
Professional fees		89,818		127,391		42,863
Registration fees		55,825		254,799		109,768
Service and distribution fees		144,153		538,910		410,644
Transfer agent fees		698,444		3,616,330		1,275,668
Other accrued expenses		35,754		304,886		54,672
Variation margin on futures contracts		3,596,441		—		509,688
Variation margin on centrally cleared swaps		—		17,374,356		2,176,521
Swap premiums received		403,740		3,748,207		1,979,451
Unrealized depreciation on:
Forward foreign currency exchange contracts		1,754,528		2,031,850		4,296,817
OTC swaps		1,644,609		11,792,779		1,245,421
Total liabilities		1,655,714,539		2,053,723,437		569,475,549
NET ASSETS	$	3,875,922,500	$	15,518,253,179	$	6,650,389,516

96 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Assets and Liabilities  (unaudited) (continued)

March 31, 2020

	BlackRock Core Bond Portfolio		BlackRock High Yield Bond Portfolio(a)		BlackRock Low Duration Bond Portfolio
NET ASSETS CONSIST OF
Paid-in capital	$	3,802,800,720	$	18,362,135,470	$	6,937,549,444
Accumulated earnings (loss)		73,121,780		(2,843,882,291)		(287,159,928)
NET ASSETS	$	3,875,922,500	$	15,518,253,179	$	6,650,389,516
(a) Consolidated Statement of Assets and Liabilities.
(b) Investments at cost — unaffiliated	$	4,184,162,149	$	15,818,110,452	$	6,457,770,245
(c)  Securities loaned at value	$	—	$	143,005,444	$	—
(d) Investments at cost — affiliated	$	461,409,601	$	1,931,195,514	$	441,412,681
(e) Foreign currency at cost	$	31,896,777	$	30,255,039	$	18,490,009
(f)  Premiums received	$	—	$	9,850,407	$	13,713,361
(g) Proceeds from TBA sale commitments	$	322,318,664	$	—	$	151,235,536

See notes to financial statements.

FINANCIAL STATEMENTS 97

Statements of Assets and Liabilities  (unaudited) (continued)

March 31, 2020

	BlackRock Core Bond Portfolio		BlackRock High Yield Bond Portfolio(a)		BlackRock Low Duration Bond Portfolio
NET ASSET VALUE
Institutional
Net assets	$	2,421,454,775	$	8,406,480,440	$	4,707,566,531
Share outstanding(h)		244,597,752		1,267,404,213		506,832,893
Net asset value	$	9.90	$	6.63	$	9.29
Service
Net assets	$	39,242,194	$	91,226,026	$	28,907,950
Share outstanding(h)		3,962,950		13,746,980		3,113,579
Net asset value	$	9.90	$	6.64	$	9.28
Investor A
Net assets	$	453,215,212	$	1,080,148,029	$	1,292,017,051
Share outstanding(h)		45,715,752		162,901,285		139,134,820
Net asset value	$	9.91	$	6.63	$	9.29
Investor A1
Net assets	$	—	$	—	$	7,897,067
Share outstanding(h)		—		—		849,753
Net asset value	$	—	$	—	$	9.29
Investor C
Net assets	$	44,246,192	$	210,296,910	$	137,331,294
Share outstanding(h)		4,482,275		31,669,298		14,796,203
Net asset value	$	9.87	$	6.64	$	9.28
Class K
Net assets	$	915,775,348	$	5,626,279,964	$	473,826,593
Share outstanding(h)		92,228,510		847,573,046		51,056,287
Net asset value	$	9.93	$	6.64	$	9.28
Class R
Net assets	$	1,988,779	$	103,821,810	$	2,843,030
Share outstanding(h)		200,520		15,654,882		306,263
Net asset value	$	9.92	$	6.63	$	9.28

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

See notes to financial statements.

98 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statements of Operations  (unaudited)

Six Months Ended March 31, 2020

	BlackRock Core Bond Portfolio			BlackRock High Yield Bond Portfolio(a)			BlackRock Low Duration Bond Portfolio
INVESTMENT INCOME
Dividends — affiliated	$	1,825,043		$	9,238,863		$	3,065,255
Dividends — unaffiliated		6,199			5,577,093			15,612
Interest — affiliated		—			—			732
Interest — unaffiliated		46,805,666			504,579,727			92,535,372
Securities lending income — affiliated — net		—			238,068			—
Foreign taxes withheld		(78,060	)		—			(29,517	)
Total investment income		48,558,848			519,633,751			95,587,454
EXPENSES
Investment advisory		5,963,715			35,110,147			10,541,198
Transfer agent — class specific		1,713,973			8,244,779			3,100,580
Service and distribution — class specific		838,057			3,382,149			2,481,116
Administration		663,218			2,823,846			1,302,467
Administration — class specific		353,926			1,711,549			743,678
Accounting services		118,880			495,356			216,507
Registration		94,745			318,443			253,385
Custodian		92,752			131,936			67,727
Printing		52,317			110,706			120,531
Professional		44,643			201,458			78,318
Trustees and Officer		20,804			87,494			39,123
Miscellaneous		80,534			244,469			108,637
Total expenses excluding interest expense		10,037,564			52,862,332			19,053,267
Interest expense		—			105,633			34,088
Total expenses		10,037,564			52,967,965			19,087,355
Less:
Transfer agent fees waived and/or reimbursed — class specific		(1,050,996	)		—			(836,558	)
Fees waived and/or reimbursed by the Manager		(405,641	)		(730,932	)		(281,625	)
Administration fees waived — class specific		(353,926	)		(166	)		(713,594	)
Total expenses after fees waived and/or reimbursed		8,227,001			52,236,867			17,255,578
Net investment income		40,331,847			467,396,884			78,331,876
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		—			(18,392,333	)		—
Investments — unaffiliated		30,323,601			(134,840,016	)		11,748,988
Capital gain distributions from investment companies — affiliated		379			532			33
Forward foreign currency exchange contracts		(1,936,490	)		2,556,186			6,538,598
Foreign currency transactions		(358,099	)		2,271,021			(2,339,377	)
Futures contracts		18,140,999			(7,103,207	)		(23,109,334	)
Options written		122,084			(42,518,219	)		492,495
Swaps		4,803,800			(92,860,660	)		(34,453,889	)
		51,096,274			(290,886,696	)		(41,122,486	)
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		—			6,894,183			(11,073,298	)
Investments — unaffiliated		(94,507,763	)		(1,876,164,010	)		(218,353,602	)
Forward foreign currency exchange contracts		1,245,251			(3,059,315	)		3,326,018
Foreign currency translations		399,671			649,333			106,765
Futures contracts		29,132,883			577,060			21,772,236
Options written		—			(22,237,017	)		(12,253,818	)
Swaps		(1,400,037	)		(31,309,755	)		3,008,854
		(65,129,995	)		(1,924,649,521	)		(213,466,845	)
Net realized and unrealized loss		(14,033,721	)		(2,215,536,217	)		(254,589,331	)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS	$	26,298,126		$	(1,748,139,333	)	$	(176,257,455	)

^(a)  Consolidated Statement of Operations.

See notes to financial statements.

FINANCIAL STATEMENTS 99

Statements of Changes in Net Assets

	BlackRock Core Bond Portfolio
	Six Months Ended 03/31/20 (unaudited)			Year Ended 09/30/19
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	40,331,847		$	89,983,257
Net realized gain		51,096,274			54,790,153
Net change in unrealized appreciation (depreciation)		(65,129,995	)		166,045,774
Net increase in net assets resulting from operations		26,298,126			310,819,184
DISTRIBUTIONS TO SHAREHOLDERS(a)
Institutional		(25,738,429	)		(54,866,553	)
Service		(445,078	)		(1,140,698	)
Investor A		(4,823,801	)		(12,439,292	)
Investor C		(328,976	)		(1,075,593	)
Class K		(10,956,320	)		(22,749,446	)
Class R		(25,409	)		(69,151	)
Decrease in net assets resulting from distributions to shareholders		(42,318,013	)		(92,340,733	)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		542,110,816			126,135,356
NET ASSETS
Total increase in net assets		526,090,929			344,613,807
Beginning of period		3,349,831,571			3,005,217,764
End of period	$	3,875,922,500		$	3,349,831,571

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

See notes to financial statements.

100 2020 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 03/31/20 (unaudited)			Year Ended 09/30/19			Six Months Ended 03/31/20 (unaudited)			Year Ended 09/30/19
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	467,396,884		$	919,180,188		$	78,331,876		$	166,297,469
Net realized gain (loss)		(290,886,696	)		(289,393,310	)		(41,122,486	)		8,591,929
Net change in unrealized appreciation (depreciation)		(1,924,649,521	)		307,547,007			(213,466,845	)		113,482,608
Net increase (decrease) in net assets resulting from operations		(1,748,139,333	)		937,333,885			(176,257,455	)		288,372,006
DISTRIBUTIONS TO SHAREHOLDERS(b)
From net investment income:
Institutional		(305,254,637	)		(580,933,412	)		(62,283,922	)		(124,569,486	)
Service		(3,740,590	)		(9,749,405	)		(319,185	)		(777,510	)
Investor A		(35,543,778	)		(72,925,661	)		(13,970,736	)		(31,842,725	)
Investor A1		—			—			(93,706	)		(237,126	)
Investor C		(6,039,353	)		(14,058,610	)		(982,568	)		(2,783,764	)
Investor C1		(25,535	)		(121,119	)		—			—
Investor C2		—			—			(94	)		(3,312	)
Investor C3		—			—			(2,575	)		(12,932	)
Class K		(138,071,958	)		(250,925,461	)		(6,342,500	)		(10,204,261	)
Class R		(3,183,936	)		(6,710,371	)		(29,610	)		(83,184	)
From return of capital:
Institutional		—			—			—			(2,335,509	)
Service		—			—			—			(14,577	)
Investor A		—			—			—			(597,009	)
Investor A1		—			—			—			(4,446	)
Investor C		—			—			—			(52,192	)
Investor C2		—			—			—			(62	)
Investor C3		—			—			—			(242	)
Class K		—			—			—			(191,316	)
Class R		—			—			—			(1,560	)
Decrease in net assets resulting from distributions to shareholders		(491,859,787	)		(935,424,039	)		(84,024,896	)		(173,711,213	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		547,136,213			1,246,394,497			(492,191,619	)		1,270,043,891
NET ASSETS
Total increase (decrease) in net assets		(1,692,862,907	)		1,248,304,343			(752,473,970	)		1,384,704,684
Beginning of period		17,211,116,086			15,962,811,743			7,402,863,486			6,018,158,802
End of period	$	15,518,253,179		$	17,211,116,086		$	6,650,389,516		$	7,402,863,486

^(a)  Consolidated Statements of Changes in Net Assets.

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

See notes to financial statements.

FINANCIAL STATEMENTS 101

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Institutional
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.92			$	9.25		$	9.65		$	9.86		$	9.65		$	9.63
Net investment income(a)		0.12				0.28			0.25			0.23			0.21			0.21
Net realized and unrealized gain (loss)		(0.02	)			0.68			(0.39	)		(0.19	)		0.24			0.05
Net increase (decrease) from investment operations		0.10				0.96			(0.14	)		0.04			0.45			0.26
Distributions from net investment income(b)		(0.12	)			(0.29	)		(0.26	)		(0.25	)		(0.24	)		(0.24	)
Net asset value, end of period	$	9.90			$	9.92		$	9.25		$	9.65		$	9.86		$	9.65
Total Return(c)
Based on net asset value		1.02%(d)				10.52%			(1.50)%			0.46%			4.78%			2.66%
Ratios to Average Net Assets
Total expenses		0.54%(e)(f)				0.60%			0.62%			0.66%			0.62%			0.60%(g)
Total expenses after fees waived and/or reimbursed		0.43%(e)(f)				0.51%			0.54%			0.52%			0.50%			0.46%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.43%(e)(f)				0.43%			0.44%			0.43%			0.45%			0.46 %
Net investment income		2.32%(e)(f)				2.94%			2.61%			2.36%			2.16%			2.15%
Supplemental Data
Net assets, end of period (000)	$	2,421,455			$	1,935,102		$	1,762,677		$	1,778,980		$	1,853,077		$	1,774,919
Portfolio turnover rate(h)		341%				684%			658%			712%			594%			863%
(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)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g) Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (h) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		226%				481%			455%			493%			422%			616%

See notes to financial statements.

102 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Service
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.92			$	9.25		$	9.65		$	9.86		$	9.66		$	9.63
Net investment income(a)		0.10				0.26			0.22			0.20			0.18			0.18
Net realized and unrealized gain (loss)		(0.01	)			0.67			(0.39	)		(0.18	)		0.23			0.05
Net increase (decrease) from investment operations		0.09				0.93			(0.17	)		0.02			0.41			0.23
Distributions from net investment income(b)		(0.11	)			(0.26	)		(0.23	)		(0.23	)		(0.21	)		(0.20	)
Net asset value, end of period	$	9.90			$	9.92		$	9.25		$	9.65		$	9.86		$	9.66
Total Return(c)
Based on net asset value		0.89%(d)				10.24%			(1.74)%			0.20%			4.32%			2.44%
Ratios to Average Net Assets
Total expenses(e)		0.85%(f)(g)				0.94%			0.98%			0.92%			0.87%			0.90%
Total expenses after fees waived and/or reimbursed		0.68%(f)(g)				0.76%			0.79%			0.78%			0.84%			0.80%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.68%(f)(g)				0.68%			0.69%			0.68%			0.79%			0.80%
Net investment income		2.07%(f)(g)				2.70%			2.36%			2.11%			1.81%			1.86%
Supplemental Data
Net assets, end of period (000)	$	39,242			$	40,195		$	49,375		$	55,196		$	55,154		$	46,481
Portfolio turnover rate(h)		341%				684%			658%			712%			594%			863%
(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			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Expense ratios		N/A				N/A			N/A			0.92%			0.80%			N/A
(f)  Annualized. (g) Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (h) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		226%				481%			455%			493%			422%			616%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 103

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Investor A
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.93			$	9.26		$	9.66		$	9.87		$	9.67		$	9.64
Net investment income(a)		0.10				0.26			0.22			0.20			0.18			0.18
Net realized and unrealized gain (loss)		(0.01	)			0.67			(0.39	)		(0.18	)		0.23			0.05
Net increase (decrease) from investment operations		0.09				0.93			(0.17	)		0.02			0.41			0.23
Distributions from net investment income(b)		(0.11	)			(0.26	)		(0.23	)		(0.23	)		(0.21	)		(0.20	)
Net asset value, end of period	$	9.91			$	9.93		$	9.26		$	9.66		$	9.87		$	9.67
Total Return(c)
Based on net asset value		0.89%(d)				10.24%			(1.74)%			0.21%			4.32%			2.42%
Ratios to Average Net Assets
Total expenses		0.83%(e)(f)				0.93%			0.97%			0.96%			0.91%			0.89%(g)
Total expenses after fees waived and/or reimbursed		0.68%(e)(f)				0.76%			0.79%			0.78%			0.84%			0.80%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.68%(e)(f)				0.68%			0.69%			0.68%			0.79%			0.80%
Net investment income		2.07%(e)(f)				2.69%			2.36%			2.11%			1.81%			1.82%
Supplemental Data
Net assets, end of period (000)	$	453,215			$	492,426		$	427,610		$	470,559		$	503,640		$	474,202
Portfolio turnover rate(h)		341%				684%			658%			712%			594%			863%
(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) Annualized. (f)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g) Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (h) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		226%				481%			455%			493%			422%			616%

See notes to financial statements.

104 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Investor C
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.89			$	9.22		$	9.62		$	9.83		$	9.63		$	9.60
Net investment income(a)		0.07				0.19			0.15			0.13			0.10			0.10
Net realized and unrealized gain (loss)		(0.02	)			0.67			(0.39	)		(0.19	)		0.24			0.06
Net increase (decrease) from investment operations		0.05				0.86			(0.24	)		(0.06	)		0.34			0.16
Distributions from net investment income(b)		(0.07	)			(0.19	)		(0.16	)		(0.15	)		(0.14	)		(0.13	)
Net asset value, end of period	$	9.87			$	9.89		$	9.22		$	9.62		$	9.83		$	9.63
Total Return(c)
Based on net asset value		0.51%(d)				9.45%			(2.49)%			(0.55)%			3.55%			1.66%
Ratios to Average Net Assets
Total expenses(e)		1.60%(f)(g)				1.68%			1.68%			1.68%			1.63%			1.62%
Total expenses after fees waived and/or reimbursed		1.43%(f)(g)				1.51%			1.54%			1.52%			1.59%			1.55%
Total expenses after fees waived and/or reimbursed and excluding interest expense		1.43%(f)(g)				1.43%			1.44%			1.44%			1.54%			1.55%
Net investment income		1.33%(f)(g)				1.96%			1.63%			1.35%			1.06%			1.07%
Supplemental Data
Net assets, end of period (000)	$	44,246			$	49,848		$	61,437		$	71,628		$	110,227		$	109,272
Portfolio turnover rate(h)		341%				684%			658%			712%			594%			863%
(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			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Expense ratios		N/A				N/A			N/A			1.68%			N/A			1.61%
(f)  Annualized. (g) Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (h) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		226%				481%			455%			493%			422%			616%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 105

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Class K
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.95			$	9.28		$	9.68		$	9.89		$	9.68		$	9.65
Net investment income(a)		0.12				0.29			0.25			0.23			0.21			0.22
Net realized and unrealized gain (loss)		(0.02	)			0.67			(0.39	)		(0.18	)		0.25			0.05
Net increase (decrease) from investment operations		0.10				0.96			(0.14	)		0.05			0.46			0.27
Distributions from net investment income(b)		(0.12	)			(0.29	)		(0.26	)		(0.26	)		(0.25	)		(0.24	)
Net asset value, end of period	$	9.93			$	9.95		$	9.28		$	9.68		$	9.89		$	9.68
Total Return(c)
Based on net asset value		1.04%(d)				10.55%			(1.44)%			0.52%			4.83%			2.83%
Ratios to Average Net Assets
Total expenses		0.42%(e)(f)				0.51%			0.54%			0.54%			0.49%			0.47%(g)
Total expenses after fees waived and/or reimbursed		0.38%(e)(f)				0.46%			0.49%			0.48%			0.45%			0.41%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.38%(e)(f)				0.38%			0.39%			0.38%			0.40%			0.40%
Net investment income		2.37%(e)(f)				2.99%			2.66%			2.41%			2.20%			2.21%
Supplemental Data
Net assets, end of period (000)	$	915,775			$	829,549		$	701,197		$	753,563		$	701,478		$	728,521
Portfolio turnover rate(h)		341%				684%			658%			712%			594%			863%
(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)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g) Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (h) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		226%				481%			455%			493%			422%			616%

See notes to financial statements.

106 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Class R
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.94			$	9.27		$	9.67		$	9.88		$	9.67		$	9.64
Net investment income(a)		0.09				0.23			0.20			0.18			0.15			0.15
Net realized and unrealized gain (loss)		(0.01	)			0.68			(0.39	)		(0.19	)		0.25			0.06
Net increase (decrease) from investment operations		0.08				0.91			(0.19	)		(0.01	)		0.40			0.21
Distributions from net investment income(b)		(0.10	)			(0.24	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)
Net asset value, end of period	$	9.92			$	9.94		$	9.27		$	9.67		$	9.88		$	9.67
Total Return(c)
Based on net asset value		0.77%(d)				9.95%			(1.98)%			(0.04)%			4.16%			2.17%
Ratios to Average Net Assets
Total expenses		1.10%(e)(f)				1.21%			1.25%			1.24%			1.21%			1.17%
Total expenses after fees waived and/or reimbursed		0.93%(e)(f)				1.02%			1.04%			1.03%			1.09%			1.05%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.93%(e)(f)				0.93%			0.94%			0.93%			1.04%			1.05%
Net investment income		1.82%(e)(f)				2.45%			2.13%			1.86%			1.56%			1.57%
Supplemental Data
Net assets, end of period (000)	$	1,989			$	2,712		$	2,921		$	3,900		$	3,761		$	3,050
Portfolio turnover rate(g)		341%				684%			658%			712%			594%			863%
(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)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		226%				481%			455%			493%			422%			616%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 107

Consolidated Financial Highlights

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Institutional
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Net asset value, beginning of period	$	7.68		$	7.67		$	7.85		$	7.61		$	7.42		$	8.20
Net investment income(a)		0.21			0.44			0.42			0.43			0.41			0.40
Net realized and unrealized gain (loss)		(1.04	)		0.02			(0.16	)		0.28			0.24			(0.62	)
Net increase (decrease) from investment operations		(0.83	)		0.46			0.26			0.71			0.65			(0.22	)
Distributions(b)
From net investment income		(0.22	)		(0.45	)		(0.44	)		(0.47	)		(0.46	)		(0.44	)
From net realized gain		—			—			—			—			—			(0.12	)
Total distributions		(0.22	)		(0.45	)		(0.44	)		(0.47	)		(0.46	)		(0.56	)
Net asset value, end of period	$	6.63		$	7.68		$	7.67		$	7.85		$	7.61		$	7.42
Total Return(c)
Based on net asset value		(11.12)%(d)			6.34%			3.48%			9.64%(e)			9.21%			(2.82)%
Ratios to Average Net Assets(f)
Total expenses		0.61%(g)			0.60%			0.61%			0.62%			0.61%(h)			0.59%
Total expenses after fees waived and/or reimbursed		0.60%(g)			0.60%			0.61%			0.61%			0.61%			0.59%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.60%(g)			0.60%			0.61%			0.59%			0.60%			0.58%
Net investment income		5.49%(g)			5.89%			5.49%			5.61%			5.58%			5.08%
Supplemental Data
Net assets, end of period (000)	$	8,406,480		$	10,693,110		$	9,680,691		$	9,728,106		$	9,031,925		$	10,926,678
Portfolio turnover rate		74%			102%			90%			86%			90%			70%
(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			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Investments in underlying funds		0.03%			0.02%			0.01%			0.01%			0.01%			0.01%

^(g)  Annualized.

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

See notes to financial statements.

108 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Service
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Net asset value, beginning of period	$	7.68		$	7.67		$	7.85		$	7.62		$	7.42		$	8.20
Net investment income(a)		0.20			0.42			0.40			0.41			0.39			0.38
Net realized and unrealized gain (loss)		(1.03	)		0.02			(0.16	)		0.27			0.25			(0.62	)
Net increase (decrease) from investment operations		(0.83	)		0.44			0.24			0.68			0.64			(0.24	)
Distributions(b)
From net investment income		(0.21	)		(0.43	)		(0.42	)		(0.45	)		(0.44	)		(0.42	)
From net realized gain		—			—			—			—			—			(0.12	)
Total distributions		(0.21	)		(0.43	)		(0.42	)		(0.45	)		(0.44	)		(0.54	)
Net asset value, end of period	$	6.64		$	7.68		$	7.67		$	7.85		$	7.62		$	7.42
Total Return(c)
Based on net asset value		(11.10)%(d)			6.06%			3.19%			9.15%(e)			9.04%			(3.13)%
Ratios to Average Net Assets(f)
Total expenses(g)		0.87%(h)			0.87%			0.90%			0.93%			0.90%			0.90%
Total expenses after fees waived and/or reimbursed		0.86%(h)			0.87%			0.89%			0.93%			0.89%			0.90%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.86%(h)			0.87%			0.89%			0.90%			0.89%			0.90%
Net investment income		5.23%(h)			5.64%			5.20%			5.31%			5.32%			4.76%
Supplemental Data
Net assets, end of period (000)	$	91,226		$	154,658		$	176,188		$	231,741		$	378,766		$	303,043
Portfolio turnover rate		74%			102%			90%			86%			90%			70%
(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			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Investments in underlying funds		0.03%			0.02%			0.01%			0.01%			0.01%			0.01%
(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			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Expense ratios		N/A			N/A			0.90%			N/A			0.90%			N/A

^(h)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 109

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Investor A
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Net asset value, beginning of period	$	7.68		$	7.67		$	7.85		$	7.61		$	7.42		$	8.20
Net investment income(a)		0.20			0.42			0.40			0.41			0.39			0.38
Net realized and unrealized gain (loss)		(1.04	)		0.02			(0.16	)		0.28			0.24			(0.62	)
Net increase (decrease) from investment operations		(0.84	)		0.44			0.24			0.69			0.63			(0.24	)
Distributions(b)
From net investment income		(0.21	)		(0.43	)		(0.42	)		(0.45	)		(0.44	)		(0.42	)
From net realized gain		—			—			—			—			—			(0.12	)
Total distributions		(0.21	)		(0.43	)		(0.42	)		(0.45	)		(0.44	)		(0.54	)
Net asset value, end of period	$	6.63		$	7.68		$	7.67		$	7.85		$	7.61		$	7.42
Total Return(c)
Based on net asset value		(11.26)%(d)			6.00%			3.15%			9.29%(e)			8.86%			(3.11)%
Ratios to Average Net Assets(f)
Total expenses(g)		0.92%(h)			0.94%			0.96%			0.98%			0.93%			0.93%
Total expenses after fees waived and/or reimbursed		0.91%(h)			0.92%			0.93%			0.94%			0.93%			0.92%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.91%(h)			0.92%			0.93%			0.91%			0.92%			0.92%
Net investment income		5.18%(h)			5.58%			5.17%			5.29%			5.27%			4.75%
Supplemental Data
Net assets, end of period (000)	$	1,080,148		$	1,329,156		$	1,326,541		$	1,672,705		$	3,733,406		$	2,797,049
Portfolio turnover rate		74%			102%			90%			86%			90%			70%
(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			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Investments in underlying funds		0.03%			0.02%			0.01%			0.01%			0.01%			0.01%
(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			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Expense ratios		N/A			N/A			N/A			0.97%			0.90%			0.89%

^(h)  Annualized.

See notes to financial statements.

110 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Investor C
	Six Months Ended			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Net asset value, beginning of period	$	7.69		$	7.68		$	7.86		$	7.62		$	7.43		$	8.21
Net investment income(a)		0.17			0.37			0.35			0.35			0.33			0.32
Net realized and unrealized gain (loss)		(1.04	)		0.02			(0.16	)		0.28			0.24			(0.62	)
Net increase (decrease) from investment operations		(0.87	)		0.39			0.19			0.63			0.57			(0.30	)
Distributions(b)
From net investment income		(0.18	)		(0.38	)		(0.37	)		(0.39	)		(0.38	)		(0.36	)
From net realized gain		—			—			—			—			—			(0.12	)
Total distributions		(0.18	)		(0.38	)		(0.37	)		(0.39	)		(0.38	)		(0.48	)
Net asset value, end of period	$	6.64		$	7.69		$	7.68		$	7.86		$	7.62		$	7.43
Total Return(c)
Based on net asset value		(11.56)%(d)			5.25%			2.43%			8.48%(e)			8.04%			(3.85)%
Ratios to Average Net Assets(f)
Total expenses		1.63%(g)			1.64%			1.64%			1.69%			1.69%			1.67%	(h)
Total expenses after fees waived and/or reimbursed		1.62%(g)			1.64%			1.63%			1.68%			1.69%			1.67%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		1.62%(g)			1.64%			1.63%			1.66%			1.68%			1.66%
Net investment income		4.47%(g)			4.87%			4.47%			4.55%			4.51%			4.00%
Supplemental Data
Net assets, end of period (000)	$	210,297		$	262,204		$	329,005		$	417,276		$	539,243		$	578,935
Portfolio turnover rate		74%			102%			90%			86%			90%			70%
(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			Year Ended September 30,
	03/31/20 (unaudited)			2019			2018			2017			2016			2015
Investments in underlying funds		0.03%			0.02%			0.01%			0.01%			0.01%			0.01%

^(g)  Annualized.

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

See notes to financial statements.

FINANCIAL HIGHLIGHTS 111

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Class K
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Net asset value, beginning of period	$	7.68			$	7.68		$	7.85		$	7.62		$	7.42		$	8.20
Net investment income(a)		0.21				0.45			0.43			0.44			0.42			0.41
Net realized and unrealized gain (loss)		(1.03	)			0.01			(0.15	)		0.27			0.25			(0.62	)
Net increase (decrease) from investment operations		(0.82	)			0.46			0.28			0.71			0.67			(0.21	)
Distributions(b)
From net investment income		(0.22	)			(0.46	)		(0.45	)		(0.48	)		(0.47	)		(0.45	)
From net realized gain		—				—			—			—			—			(0.12	)
Total distributions		(0.22	)			(0.46	)		(0.45	)		(0.48	)		(0.47	)		(0.57	)
Net asset value, end of period	$	6.64			$	7.68		$	7.68		$	7.85		$	7.62		$	7.42
Total Return(c)
Based on net asset value		(10.93)%(d)				6.32%			3.73%			9.59%	(e)		9.44%			(2.76)%
Ratios to Average Net Assets(f)
Total expenses(g)		0.49%	(h)			0.49%			0.50%			0.53%			0.53%			0.53%
Total expenses after fees waived and/or reimbursed		0.48%	(h)			0.49%			0.50%			0.52%			0.53%			0.51%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.48%	(h)			0.49%			0.50%			0.50%			0.52%			0.51%
Net investment income		5.60%	(h)			5.99%			5.59%			5.70%			5.71%			5.17%
Supplemental Data
Net assets, end of period (000)	$	5,626,280			$	4,644,939		$	4,312,394		$	5,363,522		$	5,028,654		$	1,853,500
Portfolio turnover rate		74%				102%			90%			86%			90%			70%
(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 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Investments in underlying funds		0.03%				0.02%			0.01%			0.01%			0.01%			0.01%
(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 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Expense ratios		N/A				0.49%			0.50%			0.53%			0.53%			N/A

^(h)  Annualized.

See notes to financial statements.

112 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Class R
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Net asset value, beginning of period	$	7.68			$	7.67		$	7.85		$	7.61		$	7.42		$	8.20
Net investment income(a)		0.19				0.40			0.38			0.38			0.36			0.35
Net realized and unrealized gain (loss)		(1.04	)			0.02			(0.16	)		0.28			0.24			(0.62	)
Net increase (decrease) from investment operations		(0.85	)			0.42			0.22			0.66			0.60			(0.27	)
Distributions(b)
From net investment income		(0.20	)			(0.41	)		(0.40	)		(0.42	)		(0.41	)		(0.39	)
From net realized gain		—				—			—			—			—			(0.12	)
Total distributions		(0.20	)			(0.41	)		(0.40	)		(0.42	)		(0.41	)		(0.51	)
Net asset value, end of period	$	6.63			$	7.68		$	7.67		$	7.85		$	7.61		$	7.42
Total Return(c)
Based on net asset value		(11.38)%(d)				5.69%			2.83%			8.94%	(e)		8.51%			(3.43)%
Ratios to Average Net Assets(f)
Total expenses(g)		1.18%	(h)			1.22%			1.24%			1.26%			1.26%			1.23%
Total expenses after fees waived and/or reimbursed		1.18%	(h)			1.21%			1.24%			1.26%			1.26%			1.23%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		1.18%	(h)			1.21%			1.24%			1.23%			1.25%			1.22%
Net investment income		4.92%	(h)			5.28%			4.86%			4.96%			4.95%			4.46%
Supplemental Data
Net assets, end of period (000)	$	103,822			$	125,710		$	128,584		$	132,868		$	113,010		$	97,300
Portfolio turnover rate		74%				102%			90%			86%			90%			70%
(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 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Investments in underlying funds		0.03%				0.02%			0.01%			0.01%			0.01%			0.01%
(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 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Expense ratios		N/A				N/A			N/A			1.26%			1.26%			1.22%

^(h)  Annualized.

See notes to financial statements.

FINANCIAL HIGHLIGHTS 113

Financial Highlights  

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Institutional
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.64			$	9.47		$	9.63		$	9.65		$	9.68		$	9.74
Net investment income(a)		0.10				0.25			0.21			0.16			0.16			0.16
Net realized and unrealized gain (loss)		(0.34	)			0.18			(0.14	)		0.02			—			(0.04	)
Net increase (decrease) from investment operations		(0.24	)			0.43			0.07			0.18			0.16			0.12
Distributions(b)
From net investment income		(0.11	)			(0.26	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)
From return of capital		—				(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.11	)			(0.26	)		(0.23	)		(0.20	)		(0.19	)		(0.18	)
Net asset value, end of period	$	9.29			$	9.64		$	9.47		$	9.63		$	9.65		$	9.68
Total Return(d)
Based on net asset value		(2.50)%(e)				4.59%	(f)		0.69%	(f)		1.88%			1.63%			1.19%
Ratios to Average Net Assets(g)
Total expenses		0.44%	(h)			0.45%			0.52%	(i)		0.49%	(i)		0.50%			0.52%	(i)
Total expenses after fees waived and/or reimbursed		0.40%	(h)			0.40%			0.48%			0.43%			0.47%			0.45%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.40%	(h)			0.40%			0.40%			0.41%			0.45%			0.45%
Net investment income		2.17%	(h)			2.60%			2.21%			1.69%			1.66%			1.61%
Supplemental Data
Net assets, end of period (000)	$	4,707,567			$	5,374,564		$	4,274,410		$	3,097,000		$	3,020,681		$	2,885,841
Portfolio turnover rate(j)		125%				182%			218%			292%			316%			289%
(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)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (g) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Investments in underlying funds		0.01%				0.01%			—%			—%			—%			—%
(h) Annualized. (i)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (j)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		87%				144%			169%			208%			246%			231%

See notes to financial statements.

114 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Service
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.63			$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Net investment income(a)		0.09				0.22			0.18			0.14			0.13			0.13
Net realized and unrealized gain (loss)		(0.34	)			0.17			(0.14	)		0.02			(0.01	)		(0.05	)
Net increase (decrease) from investment operations		(0.25	)			0.39			0.04			0.16			0.12			0.08
Distributions(b)
From net investment income		(0.10	)			(0.23	)		(0.18	)		(0.17	)		(0.15	)		(0.15	)
From return of capital		—				(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.10	)			(0.23	)		(0.20	)		(0.17	)		(0.15	)		(0.15	)
Net asset value, end of period	$	9.28			$	9.63		$	9.47		$	9.63		$	9.64		$	9.67
Total Return(d)
Based on net asset value		(2.63)%(e)				4.23%	(f)		0.43%	(f)		1.73%			1.29%			0.78%
Ratios to Average Net Assets(g)
Total expenses(h)		0.76%	(i)			0.76%			0.87%			0.81%			0.81%			0.88%
Total expenses after fees waived and/or reimbursed		0.65%	(i)			0.65%			0.74%			0.68%			0.81%			0.77%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.65%	(i)			0.65%			0.66%			0.67%			0.79%			0.77%
Net investment income		1.92%	(i)			2.36%			1.93%			1.41%			1.32%			1.31%
Supplemental Data
Net assets, end of period (000)	$	28,908			$	30,950		$	29,050		$	37,710		$	60,358		$	56,550
Portfolio turnover rate(j)		125%				182%			218%			292%			316%			289%
(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)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (g) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Investments in underlying funds		0.01%				0.01%			—%			—%			—%			—%
(h) 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 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Expense ratios		N/A				N/A			N/A			0.81%			0.78%			0.88%
(i)   Annualized. (j)   Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		87%				144%			169%			208%			246%			231%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 115

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Investor A
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.63			$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Net investment income(a)		0.09				0.22			0.18			0.14			0.13			0.12
Net realized and unrealized gain (loss)		(0.33	)			0.17			(0.14	)		0.02			(0.01	)		(0.04	)
Net increase (decrease) from investment operations		(0.24	)			0.39			0.04			0.16			0.12			0.08
Distributions(b)
From net investment income		(0.10	)			(0.23	)		(0.18	)		(0.17	)		(0.15	)		(0.15	)
From return of capital		—				(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.10	)			(0.23	)		(0.20	)		(0.17	)		(0.15	)		(0.15	)
Net asset value, end of period	$	9.29			$	9.63		$	9.47		$	9.63		$	9.64		$	9.67
Total Return(d)
Based on net asset value		(2.52)%(e)				4.23%	(f)		0.43%	(f)		1.73%			1.29%			0.75%
Ratios to Average Net Assets(g)
Total expenses(h)		0.76%	(i)			0.78%			0.88%			0.81%			0.83%			0.86%
Total expenses after fees waived and/or reimbursed		0.65%	(i)			0.65%			0.74%			0.68%			0.81%			0.79%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.65%	(i)			0.65%			0.66%			0.66%			0.79%			0.79%
Net investment income		1.92%	(i)			2.35%			1.94%			1.47%			1.32%			1.29%
Supplemental Data
Net assets, end of period (000)	$	1,292,017			$	1,318,473		$	1,267,494		$	1,309,023		$	875,788		$	822,299
Portfolio turnover rate(j)		125%				182%			218%			292%			316%			289%
(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)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (g) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:																			��
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Investments in underlying funds		0.01%				0.01%			—%			—%			—%			—%
(h) 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 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Expense ratios		N/A				N/A			N/A			N/A			N/A			0.85%
(i)  Annualized. (j)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
					2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		87%				144%			169%			208%			246%			231%

See notes to financial statements.

116 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Investor A1
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.64		$	9.48		$	9.64		$	9.65		$	9.68		$	9.75
Net investment income(a)		0.10			0.24			0.20			0.15			0.15			0.14
Net realized and unrealized gain (loss)		(0.34	)		0.17			(0.14	)		0.03			(0.01	)		(0.05	)
Net increase (decrease) from investment operations		(0.24	)		0.41			0.06			0.18			0.14			0.09
Distributions(b)
From net investment income		(0.11	)		(0.25	)		(0.20	)		(0.19	)		(0.17	)		(0.16	)
From return of capital		—			(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.11	)		(0.25	)		(0.22	)		(0.19	)		(0.17	)		(0.16	)
Net asset value, end of period	$	9.29		$	9.64		$	9.48		$	9.64		$	9.65		$	9.68
Total Return(d)
Based on net asset value		(2.55)%(e)			4.38%(f)			0.59%(f)			1.88%			1.48%			0.94%
Ratios to Average Net Assets(g)
Total expenses		0.59%(h)			0.59%			0.70%			0.66%			0.68%			0.69%
Total expenses after fees waived and/or reimbursed		0.50%(h)			0.50%			0.59%			0.53%			0.62%			0.60%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.50%(h)			0.50%			0.51%			0.51%			0.60%			0.60%
Net investment income		2.07%(h)			2.51%			2.09%			1.59%			1.51%			1.47%
Supplemental Data
Net assets, end of period (000)	$	7,897		$	8,621		$	9,492		$	10,751		$	11,892		$	14,742
Portfolio turnover rate(i)		125%			182%			218%			292%			316%			289%
(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)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (g) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.01%			0.01%			—%			—%			—%			—%
(h) Annualized. (i)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		87%			144%			169%			208%			246%			231%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 117

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Investor C
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.63		$	9.46		$	9.63		$	9.64		$	9.67		$	9.73
Net investment income(a)		0.06			0.15			0.11			0.06			0.06			0.05
Net realized and unrealized gain (loss)		(0.35	)		0.18			(0.15	)		0.03			(0.01	)		(0.04	)
Net increase (decrease) from investment operations		(0.29	)		0.33			(0.04	)		0.09			0.05			0.01
Distributions(b)
From net investment income		(0.06	)		(0.16	)		(0.11	)		(0.10	)		(0.08	)		(0.07	)
From return of capital		—			(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.06	)		(0.16	)		(0.13	)		(0.10	)		(0.08	)		(0.07	)
Net asset value, end of period	$	9.28		$	9.63		$	9.46		$	9.63		$	9.64		$	9.67
Total Return(d)
Based on net asset value		(2.99)%(e)			3.56%(f)			(0.42)%(f)			0.97%			0.55%			0.11%
Ratios to Average Net Assets(g)
Total expenses		1.50%(h)			1.52%			1.62%			1.58%			1.59%			1.59%
Total expenses after fees waived and/or reimbursed		1.40%(h)			1.40%			1.49%			1.43%			1.55%			1.53%
Total expenses after fees waived and/or reimbursed and excluding interest expense		1.40%(h)			1.40%			1.41%			1.42%			1.53%			1.53%
Net investment income		1.17%(h)			1.61%			1.18%			0.67%			0.58%			0.54%
Supplemental Data
Net assets, end of period (000)	$	137,331		$	152,890		$	172,631		$	243,527		$	372,307		$	361,424
Portfolio turnover rate(i)		125%			182%			218%			292%			316%			289%
(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)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (g) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.01%			0.01%			—%			—%			—%			—%
(h) Annualized. (i)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		87%			144%			169%			208%			246%			231%

See notes to financial statements.

118 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Class K
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.63		$	9.46		$	9.62		$	9.64		$	9.67		$	9.73
Net investment income(a)		0.11			0.25			0.22			0.15			0.16			0.16
Net realized and unrealized gain (loss)		(0.35	)		0.18			(0.15	)		0.03			—			(0.04	)
Net increase (decrease) from investment operations		(0.24	)		0.43			0.07			0.18			0.16			0.12
Distributions(b)
From net investment income		(0.11	)		(0.26	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)
From return of capital		—			(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.11	)		(0.26	)		(0.23	)		(0.20	)		(0.19	)		(0.18	)
Net asset value, end of period	$	9.28		$	9.63		$	9.46		$	9.62		$	9.64		$	9.67
Total Return(d)
Based on net asset value		(2.48)%(e)			4.65%(f)			0.73%(f)			1.93%			1.69%			1.24%
Ratios to Average Net Assets(g)
Total expenses		0.37%(h)			0.37%			0.46%			0.43%			0.44%			0.44%	(i)
Total expenses after fees waived and/or reimbursed		0.35%(h)			0.35%			0.44%			0.37%			0.41%			0.40%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.35%(h)			0.35%			0.35%			0.36%			0.40%			0.40%
Net investment income		2.22%(h)			2.64%			2.27%			1.63%			1.71%			1.67%
Supplemental Data
Net assets, end of period (000)	$	473,827		$	512,940		$	258,340		$	161,006		$	930,769		$	927,190
Portfolio turnover rate(j)		125%			182%			218%			292%			316%			289%
(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)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (g) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.01%			0.01%			—%			—%			—%			—%
(h) Annualized. (i)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (j)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		87%			144%			169%			208%			246%			231%

See notes to financial statements.

FINANCIAL HIGHLIGHTS 119

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Class R
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Net asset value, beginning of period	$	9.63		$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Net investment income(a)		0.08			0.20			0.16			0.11			0.10			0.10
Net realized and unrealized gain (loss)		(0.34	)		0.17			(0.14	)		0.03			—			(0.05	)
Net increase (decrease) from investment operations		(0.26	)		0.37			0.02			0.14			0.10			0.05
Distributions(b)
From net investment income		(0.09	)		(0.21	)		(0.16	)		(0.15	)		(0.13	)		(0.12	)
From return of capital		—			(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.09	)		(0.21	)		(0.18	)		(0.15	)		(0.13	)		(0.12	)
Net asset value, end of period	$	9.28		$	9.63		$	9.47		$	9.63		$	9.64		$	9.67
Total Return(d)
Based on net asset value		(2.75)%(e)			3.97%(f)			0.18%(f)			1.47%			1.04%			0.48%
Ratios to Average Net Assets(g)
Total expenses		1.13%(h)			1.18%			1.24%			1.25%			1.24%			1.16%
Total expenses after fees waived and/or reimbursed		0.90%(h)			0.90%			0.99%			0.93%			1.06%			1.05%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.90%(h)			0.90%			0.91%			0.92%			1.04%			1.05%
Net investment income		1.68%(h)			2.10%			1.69%			1.18%			1.07%			1.02%
Supplemental Data
Net assets, end of period (000)	$	2,843		$	3,949		$	4,493		$	4,794		$	5,181		$	4,247
Portfolio turnover rate(i)		125%			182%			218%			292%			316%			289%
(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)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (g) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Investments in underlying funds		0.01%			0.01%			—%			—%			—%			—%
(h) Annualized. (i)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Six Months Ended 03/31/20 (unaudited)			Year Ended September 30,
				2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		87%			144%			169%			208%			246%			231%

See notes to financial statements.

120 2020 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 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 only to certain eligible investors. Service, Investor A, Investor A1, Investor C and Class R Shares bear certain expenses related to shareholder servicing of such shares, and Investor C 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 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans. Class R Shares are available to only certain employer-sponsored retirement plans. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).

On February 24, 2020, High Yield Bond’s issued and outstanding Investor C1 Shares and Low Duration Bond’s issued and outstanding Investor C2 and Investor C3 Shares converted into Investor A Shares.

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
							To Investor A Shares after
Investor C Shares		No			Yes	(d)	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)  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 C Shares made within one year after purchase.

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.

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 private Canadian companies. 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, if any, is included in expenses in the Consolidated Statement of Operations for High Yield Bond. An income 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 $1,443,433, which is 0.01% 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. 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.

NOTESTO FINANCIAL STATEMENTS 121

Notes to Financial Statements  (unaudited) (continued)

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 borrowings 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 portion of distributions, if any, that exceeds a fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute anon-taxable return of capital. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Deferred Compensation Plan:Under the Deferred Compensation Plan (the “Plan”) approved by the Board of Trustees of the Trust (the “Board”), the trustees who are not “interested persons” of the Funds, as defined in the 1940 Act (“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: The Funds have adopted Financial Accounting Standards Board Accounting Standards Update2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Funds have changed the amortization period for the premium on certain purchased callable debt securities withnon-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Funds applied the amendments on a modified retrospective basis beginning with the fiscal period ended March 31, 2020. The adjusted cost basis of securities at September 30, 2019, if applicable, are as follows:

Core Bond	$	3,743,772,276
High Yield Bond		16,950,530,358
Low Duration Bond		7,842,491,957

This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value of 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). 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. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of 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

122 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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-traded andover-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 net asset value (“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 based on that day’s prevailing forward exchange rate for the underlying currencies. 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 pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

NOTESTO FINANCIAL STATEMENTS 123

Notes to Financial Statements  (unaudited) (continued)

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

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

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

The Private Companies are not subject to the public company disclosure, timing, and reporting standards 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 the Global Valuation Committee’s assumptions used in determining the fair value of investments and derivative financial instruments)

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

As of March 31, 2020, certain investments of the High Yield Bond were fair 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.

124 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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 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.

NOTESTO FINANCIAL STATEMENTS 125

Notes to Financial Statements  (unaudited) (continued)

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.

Forward Commitments, When-Issued and 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.

In order to better define contractual rights and to secure rights that will help a fund mitigate its 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.

126 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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, 2020, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate for the Funds were as follows:

	High Yield Bond
Average Borrowings	$	1,986,962
Daily Weighted Average Interest Rate		0.83%

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 High Yield Bond’s securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received(a)			Net Amount
BofA Securities, Inc.	$	3,315,900	$	(3,315,900	)	$	—
Citigroup Global Markets, Inc.		4,124,550		(4,124,550	)		—
Credit Suisse Securities (USA) LLC		798,250		(798,250	)		—
Deutsche Bank Securities, Inc.		1,479,744		(1,479,744	)		—
Goldman Sachs & Co.		42,410,000		(42,410,000	)		—
JP Morgan Securities LLC		32,170,800		(32,170,800	)		—
National Financial Services LLC		38,407,596		(38,407,596	)		—
State Street Bank & Trust Co.		81,088		(81,088	)		—
TD Prime Services LLC		20,217,516		(20,217,516	)		—
	$	143,005,444	$	(143,005,444	)	$	—

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

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefit from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. 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. Such losses are borne entirely by the Funds.

NOTESTO FINANCIAL STATEMENTS 127

Notes to Financial Statements  (unaudited) (continued)

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, are 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, and such value may exceed the amounts reflected in the Statements of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the 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, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the 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.

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 they 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

128 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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 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 security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).

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

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,

NOTESTO FINANCIAL STATEMENTS 129

Notes to Financial Statements  (unaudited) (continued)

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 Fees
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 Fees
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
	Low Duration Bond
Average Daily Net Assets	Investment Advisory Fees
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 Taxable Subsidiary. The Manager does not receive separate compensation from the Taxable 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 Taxable Subsidiary.

With respect to each of High Yield Bond and Low Duration Bond, the Manager entered into asub-advisory agreement, effective December 2, 2019, with BlackRock International Limited (“BIL”), an affiliate of the Manager. The Manager pays BIL for services it provides for that portion of each Fund for which BIL, acts assub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by each Fund to the Manager.

With respect to Core Bond, the Manager entered into asub-advisory agreement with BIL and BlackRock (Singapore) Limited (“BRS”), each an affiliate of the Manager. The Manager pays BIL and BRS for services they provide for that portion of Core Bond for which BIL and BRS acts assub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by Core Bond to the Manager.

130 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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 Fees			Distribution Fees
Service		0.25	%		—	%
Investor A		0.25			—
Investor A1		0.10			—
Investor C		0.25			0.75
Investor C1(a)		0.25			0.55
Investor C2(a)		0.10			0.30
Investor C3(a)		0.25			0.65
Class R		0.25			0.25

^(a) On February 24, 2020, Investor C1, Investor C2 and Investor C3 Shares converted into Investor A Shares.

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, 2020, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

	Core Bond		High Yield Bond		Low Duration Bond
Service	$	51,010	$	169,405	$	38,514
Investor A		551,791		1,628,588		1,686,224
Investor A1		—		—		4,215
Investor C		228,674		1,273,044		742,357
Investor C1		—		4,162		—
Investor C2		—		—		22
Investor C3		—		—		1,651
Class R		6,582		306,950		8,133
	$	838,057	$	3,382,149	$	2,481,116

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, 2020 the following table shows the class specific administration fees borne directly by each share class of each Fund:

	Core Bond		High Yield Bond		Low Duration Bond
Institutional	$	212,343	$	1,059,270	$	536,125
Service		4,080		13,551		3,081
Investor A		44,140		130,276		134,886
Investor A1		—		—		843
Investor C		4,573		25,459		14,846
Investor C1		—		104		—
Investor C2		—		—		1
Investor C3		—		—		37
Class K		88,527		470,612		53,534
Class R		263		12,277		325
	$	353,926	$	1,711,549	$	743,678

NOTESTO FINANCIAL STATEMENTS 131

Notes to Financial Statements  (unaudited) (continued)

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, 2020, 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	$	130,784	$	—	$	2,271	$	133,055
High Yield Bond		128,486		11		595		129,092
Low Duration Bond		67,723		—		—		67,723

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, 2020, 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:

	Core Bond		High Yield Bond		Low Duration Bond
Institutional	$	1,840	$	14,362	$	5,096
Service		—		159		167
Investor A		3,746		21,998		3,961
Investor A1		—		—		126
Investor C		700		2,504		582
Investor C1		—		10		—
Investor C3		—		—		5
Class K		760		—		505
Class R		22		722		10
	$	7,068	$	39,755	$	10,452
For the six months ended March 31, 2020, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:
	Core Bond		High Yield Bond		Low Duration Bond
Institutional	$	1,289,201	$	6,553,288	$	1,987,809
Service		35,390		89,750		22,018
Investor A		342,363		1,175,134		964,096
Investor A1		—		—		5,464
Investor C		39,337		178,910		102,097
Investor C1		—		655		—
Investor C2		—		—		32
Investor C3		—		—		343
Class K		5,421		124,881		14,450
Class R		2,261		122,161		4,271
	$	1,713,973	$	8,244,779	$	3,100,580

Other Fees: For the six months ended March 31, 2020, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

Core Bond	$	31,897
High Yield Bond		55,110
Low Duration Bond		41,554

For the six months ended March 31, 2020, affiliates received CDSCs as follows:

	Investor A		Investor C
Core Bond	$	9,588	$	3,088
High Yield Bond		2,525		20,086
Low Duration Bond		39,026		9,824

Expense Limitations, Waivers, Reimbursements, and Recoupments:With respect to each Fund, the Manager contractually 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”) through January 31, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Fund. 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. Prior to January 28, 2020, this waiver was voluntary. 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, 2020, the amounts waived were as follows:

Core Bond	$	102,434
High Yield Bond		131,625
Low Duration Bond		49,470

132 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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, 2021. 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, 2020, the amounts waived in investment advisory fees pursuant to these arrangements were as follows:

High Yield Bond	$	599,307
Low Duration Bond		225,569

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

The Manager has agreed not to reduce or discontinue these contractual expense limitations through January 31, 2021, 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, 2020, the amounts waived and/or reimbursed by the Manager were as follows:

Core Bond	$	303,207
Low Duration Bond		6,586

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, 2020, class specific expense waivers and/or reimbursements are as follows:

Administration Fees Waived	Core Bond		High Yield Bond		Low Duration Bond
Institutional	$	212,343	$	—	$	533,486
Service		4,080		—		3,081
Investor A		44,140		166		134,886
Investor A1		—		—		843
Investor C		4,573		—		14,846
Investor C2		—		—		1
Investor C3		—		—		37
Class K		88,527		—		26,089
Class R		263		—		325
	$	353,926	$	166	$	713,594
Transfer Agent Fees Waived and/or Reimbursed			Core Bond		Low Duration Bond
Institutional			$	757,758	$	243,018
Service				25,292		11,924
Investor A				232,963		521,826
Investor A1				—		2,701
Investor C				27,954		53,575
Investor C2				—		22
Investor C3				—		217
Class K				5,421		80
Class R				1,608		3,195
			$	1,050,996	$	836,558

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. Effective December 1, 2019, the repayment arrangement between each Fund and the Manager pursuant to which such Fund may be required to repay amounts waived and/or reimbursed under each Fund’s contractual caps on net expenses was terminated.

NOTESTO FINANCIAL STATEMENTS 133

Notes to Financial Statements  (unaudited) (continued)

The following Fund level and class specific waivers and/or reimbursements previously recorded by the Fund, which were subject to recoupment by the Manager, expired on December 1, 2019:

	Core Bond		High Yield Bond		Low Duration Bond
Fund Level	$	1,878,880	$	—	$	15,449
Institutional		2,374,828		—		2,750,123
Service		154,997		—		72,075
Investor A		1,397,120		589,793		3,362,837
Investor A1		—		—		18,436
Investor C		154,022		—		424,850
Investor C1		—		495		—
Investor C2		—		—		1,572
Investor C3		—		—		7,361
Class K		330,891		—		75,468
Class R		11,058		—		23,202

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 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 82% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses. In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock 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 85% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

Prior to January 1, 2020, High Yield Bond retained 73.5% of securities lending income (which excluded collateral investment expenses) and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment expenses. In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Fixed-Income Complex in a calendar year exceeded a specified threshold, High Yield Bond would retain for the remainder of that calendar year 80% of securities lending income (which excluded collateral investment expenses), and the amount retained could never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by High Yield Bond is shown as securities lending income — affiliated — net in the Consolidated Statement of Operations. For the six months ended March 31, 2020, High Yield Bond paid BIM $55,313 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, 2020, the Funds did not participate in the Interfund Lending Program.

Trustees and Officers:Certain trustees and/or officers of the Trusts are directors 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.

134 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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, 2020, 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	$	14,764	$	2,695,212	$	(279,660	)
High Yield Bond		602,977,416		55,320,644		717,095
Low Duration Bond		16,709,896		—		—

7. PURCHASES AND SALES

For the six months ended March 31, 2020, 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	$	12,942,967,634	$	12,355,395,558	$	7,698,743,850
U.S. Government Securities		496,018,889		—		1,350,680,079
	$	13,438,986,523	$	12,355,395,558	$	9,049,423,929
Sales
Non-U.S. Government Securities	$	12,983,577,359	$	12,477,283,189	$	8,415,890,273
U.S. Government Securities		320,081,023		—		1,905,647,928
	$	13,303,658,382	$	12,477,283,189	$	10,321,538,201

For the six months ended March 31, 2020, purchases and sales related to mortgage dollar rolls were as follow:

	Core Bond		Low Duration Bond
Purchases	$	4,485,348,885	$	2,762,505,542
Sales		4,484,925,213		2,762,034,688

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 Taxable Subsidiary.

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, 2019. 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, 2020, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of September 30, 2019, the Funds hadnon-expiring capital loss carryforwards available to offset future realized capital gains as follows:

Core Bond	$	21,019,301
High Yield Bond		899,114,199
Low Duration Bond		75,779,519

As of March 31, 2020, 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	$	4,646,761,846		$	17,794,269,106		$	6,902,360,891
Gross unrealized appreciation	$	143,090,950		$	119,317,656		$	103,282,821
Gross unrealized depreciation		(94,491,132	)		(1,777,392,391	)		(264,265,405	)
Net unrealized appreciation (depreciation)	$	48,599,818		$	(1,658,074,735	)	$	(160,982,584	)

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

NOTESTO FINANCIAL STATEMENTS 135

Notes to Financial Statements  (unaudited) (continued)

and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. 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, 2020, the Funds did not borrow under the credit agreement.

10. PRINCIPAL RISKS

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

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

In the normal course of business, 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. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. 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.

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 it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause 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 and 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

136 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

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.

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.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 03/31/20						Year Ended 09/30/19
	Shares			Amount			Shares			Amount
Core Bond
Institutional
Shares sold		79,459,777		$	793,198,287			58,954,554		$	562,957,286
Shares issued in reinvestment of distributions		2,384,738			23,784,152			5,225,917			49,860,865
Shares redeemed		(32,355,306	)		(319,074,737	)		(59,622,838	)		(568,545,951	)
Net increase		49,489,209		$	497,907,702			4,557,633		$	44,272,200
Service
Shares sold		370,148		$	3,662,424			747,668		$	7,155,368
Shares issued in reinvestment of distributions		44,543			444,202			118,602			1,128,634
Shares redeemed		(503,289	)		(5,006,155	)		(2,150,888	)		(20,174,665	)
Net decrease		(88,598	)	$	(899,529	)		(1,284,618	)	$	(11,890,663	)
Investor A
Shares sold		11,347,298		$	112,663,112			13,311,539		$	126,824,365
Shares issued in reinvestment of distributions		465,017			4,642,274			1,256,238			12,004,462
Shares redeemed		(15,673,532	)		(154,980,598	)		(11,149,529	)		(105,604,612	)
Net increase (decrease)		(3,861,217	)	$	(37,675,212	)		3,418,248		$	33,224,215
Investor C
Shares sold		1,121,764		$	11,146,006			1,179,700		$	11,240,172
Shares issued in reinvestment of distributions		30,191			299,871			103,735			984,358
Shares redeemed		(1,709,567	)		(16,879,942	)		(2,903,618	)		(27,358,066	)
Net decrease		(557,612	)	$	(5,434,065	)		(1,620,183	)	$	(15,133,536	)
Class K
Shares sold		16,065,869		$	160,309,987			16,217,659		$	155,733,531
Shares issued in reinvestment of distributions		1,065,345			10,656,443			2,295,745			21,971,817
Shares redeemed		(8,292,676	)		(82,023,210	)		(10,702,500	)		(101,646,792	)
Net increase		8,838,538		$	88,943,220			7,810,904		$	76,058,556
Class R
Shares sold		21,971		$	217,884			48,863		$	463,854
Shares issued in reinvestment of distributions		2,531			25,280			7,247			69,144
Shares redeemed		(96,952	)		(974,464	)		(98,276	)		(928,414	)
Net decrease		(72,450	)	$	(731,300	)		(42,166	)	$	(395,416	)
Total Net Increase		53,747,870		$	542,110,816			12,839,818		$	126,135,356
High Yield Bond
Institutional
Shares sold		486,494,380		$	3,640,683,402			1,013,381,817		$	7,603,463,797
Shares issued in reinvestment of distributions		36,917,564			277,150,678			69,159,001			519,713,900
Shares redeemed		(648,597,226	)		(4,826,565,540	)		(951,987,667	)		(7,118,339,335	)
Net increase (decrease)		(125,185,282	)	$	(908,731,460	)		130,553,151		$	1,004,838,362

NOTESTO FINANCIAL STATEMENTS 137

Notes to Financial Statements  (unaudited) (continued)

	Six Months Ended 03/31/20						Year Ended 09/30/19
	Shares			Amount			Shares			Amount
Service
Shares sold		8,634,715		$	66,046,365			26,925,349		$	202,663,801
Shares issued in reinvestment of distributions		482,076			3,631,035			1,283,402			9,634,956
Shares redeemed		(15,501,007	)		(117,475,562	)		(31,038,176	)		(233,953,036	)
Net decrease		(6,384,216	)	$	(47,798,162	)		(2,829,425	)	$	(21,654,279	)
Investor A
Shares sold		36,360,267		$	275,643,222			89,269,598		$	668,379,422
Shares issued in reinvestment of distributions		4,273,508			32,039,814			8,705,424			65,323,251
Shares redeemed		(50,888,238	)		(379,832,595	)		(97,803,313	)		(732,231,738	)
Net increase (decrease)		(10,254,463	)	$	(72,149,559	)		171,709		$	1,470,935
Investor C
Shares sold		3,081,946		$	23,416,408			5,808,760		$	43,856,756
Shares issued in reinvestment of distributions		724,175			5,436,898			1,690,358			12,686,090
Shares redeemed		(6,246,215	)		(46,332,777	)		(16,231,675	)		(121,962,508	)
Net decrease		(2,440,094	)	$	(17,479,471	)		(8,732,557	)	$	(65,419,662	)
Investor C1(a)
Shares sold		3,706		$	28,585			14,297		$	106,914
Shares issued in reinvestment of distributions		2,744			21,204			15,555			116,637
Shares redeemed and automatic conversion of shares		(180,597	)		(1,401,443	)		(1,080,338	)		(8,132,021	)
Net decrease		(174,147	)	$	(1,351,654	)		(1,050,486	)	$	(7,908,470	)
Class K
Shares sold		426,745,032		$	2,935,170,315			296,089,454		$	2,234,441,701
Shares issued in reinvestment of distributions		16,569,341			124,406,525			29,816,561			224,062,721
Shares redeemed		(200,243,674	)		(1,459,816,860	)		(283,213,492	)		(2,120,629,398	)
Net increase		243,070,699		$	1,599,759,980			42,692,523		$	337,875,024
Class R
Shares sold		2,098,176		$	15,706,051			3,653,480		$	27,476,499
Shares issued in reinvestment of distributions		424,018			3,177,942			893,735			6,703,839
Shares redeemed		(3,241,559	)		(23,997,454	)		(4,938,196	)		(36,987,751	)
Net decrease		(719,365	)	$	(5,113,461	)		(390,981	)	$	(2,807,413	)
Total Net Increase		97,913,132		$	547,136,213			160,413,934		$	1,246,394,497
Low Duration Bond
Institutional
Shares sold		123,357,392		$	1,184,246,952			255,637,955		$	2,438,891,645
Shares issued in reinvestment of distributions		6,270,315			60,175,815			12,760,621			121,859,736
Shares redeemed		(180,464,211	)		(1,724,655,538	)		(162,007,772	)		(1,541,598,872	)
Net increase (decrease)		(50,836,504	)	$	(480,232,771	)		106,390,804		$	1,019,152,509
Service
Shares sold		354,046		$	3,402,199			1,362,027		$	12,939,297
Shares issued in reinvestment of distributions		33,133			317,691			82,838			790,447
Shares redeemed		(486,561	)		(4,639,322	)		(1,300,321	)		(12,422,888	)
Net increase (decrease)		(99,382	)	$	(919,432	)		144,544		$	1,306,856
Investor A
Shares sold and automatic conversion of shares		43,797,019		$	420,800,846			40,678,905		$	387,195,143
Shares issued in reinvestment of distributions		1,404,503			13,472,064			3,279,253			31,288,962
Shares redeemed		(42,914,549	)		(412,292,107	)		(40,973,256	)		(390,594,187	)
Net increase		2,286,973		$	21,980,803			2,984,902		$	27,889,918
Investor A1
Shares sold		596		$	5,760			13,578		$	129,648
Shares issued in reinvestment of distributions		7,381			70,860			18,921			180,655
Shares redeemed		(52,315	)		(502,817	)		(140,020	)		(1,342,934	)
Net decrease		(44,338	)	$	(426,197	)		(107,521	)	$	(1,032,631	)
Investor C
Shares sold		2,036,644		$	19,506,750			3,973,118		$	37,653,643
Shares issued in reinvestment of distributions		87,051			834,257			253,439			2,416,147
Shares redeemed and automatic conversion of shares		(3,203,743	)		(30,562,289	)		(6,590,562	)		(62,681,598	)
Net decrease		(1,080,048	)	$	(10,221,282	)		(2,364,005	)	$	(22,611,808	)

138 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Notes to Financial Statements  (unaudited) (continued)

	Six Months Ended 03/31/20						Year Ended 09/30/19
	Shares			Amount			Shares			Amount
Investor C2(a)
Shares sold		—		$	2			—		$	—
Shares issued in reinvestment of distributions		8			79			353			3,354
Shares redeemed and automatic conversion of shares		(1,365	)		(13,216	)		(59,579	)		(563,951	)
Net decrease		(1,357	)	$	(13,135	)		(59,226	)	$	(560,597	)
Investor C3(a)
Shares sold		268		$	2,581			18,194		$	172,285
Shares issued in reinvestment of distributions		223			2,150			1,370			13,039
Shares redeemed and automatic conversion of shares		(48,538	)		(469,474	)		(148,549	)		(1,404,724	)
Net decrease		(48,047	)	$	(464,743	)		(128,985	)	$	(1,219,400	)
Class K
Shares sold		17,390,475		$	167,008,806			43,738,804		$	417,163,489
Shares issued in reinvestment of distributions		653,839			6,268,897			1,074,665			10,261,330
Shares redeemed		(20,260,364	)		(194,178,473	)		(18,840,509	)		(179,698,612	)
Net increase (decrease)		(2,216,050	)	$	(20,900,770	)		25,972,960		$	247,726,207
Class R
Shares sold		114,070		$	1,100,097			233,380		$	2,232,441
Shares issued in reinvestment of distributions		3,040			29,153			8,783			83,723
Shares redeemed		(220,836	)		(2,123,342	)		(306,773	)		(2,923,327	)
Net decrease		(103,726	)	$	(994,092	)		(64,610	)	$	(607,163	)
Total Net Increase (Decrease)		(52,142,479	)	$	(492,191,619	)		132,768,863		$	1,270,043,891

^(a) On February 24, 2020, each Fund’s issued and outstanding Investor C1, Investor C2 and Investor C3 Shares, as applicable, converted into Investor A Shares.

12. 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 16, 2020, the credit agreement was extended until April 2021 under the same terms.

NOTESTO FINANCIAL STATEMENTS 139

Disclosure ofSub-Advisory Agreements

The Board of Trustees (the “Board,” and the members of which are referred to as “Board Members”) of BlackRock Funds V (the “Trust”) on behalf of its series, BlackRock High Yield Bond Portfolio and BlackRock Low Duration Bond Portfolio (each a “Fund” and collectively, the “Funds”), met in person on November14-15, 2019 (the “November Meeting”) to consider the initial approval of thesub-advisory agreements (the“Sub-Advisory Agreements”) between BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor, and BlackRock International Limited, with respect to each Fund. TheSub-Advisory Agreements were substantially similar to thesub-advisory agreements previously approved with respect to certain other portfolios in the BlackRock Fixed-Income Complex.

On the date of the November Meeting, the Board consisted of eleven individuals, nine of whom were not “interested persons” of the Trust as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). Pursuant to the 1940 Act, the Board is required to consider the initial approval of theSub-Advisory Agreements.

At the November Meeting, the Board reviewed materials relating to its consideration of the proposedSub-Advisory Agreements. Each Fund’s investment advisory agreement with the Manager was most recently approved by the Board atin-person meetings on May 1, 2019 (the “May Meeting”) and June5-6, 2019 (the “June Meeting”). A discussion of the basis for the Board’s approval of these agreements at the May and June Meetings is included in the Funds’ annual shareholder report for the fiscal year ended September 30, 2019. The factors considered by the Board at the November Meeting in connection with approval of the proposedSub-Advisory Agreements were substantially the same as the factors considered at the May and June Meetings.

Following discussion, all the Board Members present at the November Meeting, including all the Independent Board Members present, approved theSub-Advisory Agreement between the Manager and BlackRock International Limited, with respect to each Fund for atwo-year term beginning on the effective date of theSub-Advisory Agreement. Based upon its evaluation of all of the aforementioned factors in their totality, the Board, including the Independent Board Members, was satisfied that the terms of eachSub-Advisory Agreement were fair and reasonable and in the best interest of the applicable Fund and its shareholders. In arriving at its decision to approve eachSub-Advisory Agreement, the Board did not identify any single factor or group of factors asall-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

140 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Statement Regarding Liquidity Risk Management Program

The Securities and Exchange Commission adopted Rule22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout theopen-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

The Board of Trustees (the “Board”) of BlackRock Funds V, on behalf of BlackRock Core Bond Portfolio, BlackRock High Yield Bond Portfolio and BlackRock Low Duration Bond Portfolio, met on November14-15, 2019 (the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the BlackRockopen-end funds, excluding money market funds (each, a “Fund”), pursuant to the Liquidity Rule. The Board has appointed BlackRock Advisors, LLC or BlackRock Fund Advisors (“BlackRock”), each an investment adviser to certain Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:

A. The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions: During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for anopen-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Where a Fund participated in borrowings for investment purposes (such as tender option bonds and reverse repurchase agreements), such borrowings were factored into the Program’s calculation of a Fund’s liquidity bucketing. Derivative exposure was also considered in such calculation.

B. Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions: During the Program Reporting Period, the Committee reviewed historical net redemption activity and used this information as a component to establish each Fund’s reasonably anticipated trading size (“RATS”). Each Fund has adopted anin-kind redemption policy which may be utilized to meet larger redemption requests. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projections.

C. Holdings of cash and cash equivalents, as well as borrowing arrangements: The Committee considered the terms of the credit facility applicable to the Funds, the financial health of the institution providing the facility and the fact that the credit facility is shared among multiple Funds (including that a portion of the aggregate commitment amount is specifically designated for BlackRock Floating Rate Income Portfolio and BlackRock Credit Strategies Income Fund, each a series of BlackRock Funds V). The Committee also considered other types of borrowing available to the Funds, such as the ability to use reverse repurchase agreements and interfund lending, as applicable.

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.

STATEMENT REGARDING LIQUIDITY RISK MANAGEMENT PROGRAM 141

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

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

Lisa Belle, Anti-Money Laundering Compliance Officer

Janey Ahn, Secretary

Further information about the Trust’s Trustees and Officers is available in the Trust’s Statement of Additional Information, which can be obtained without charge by calling (800)441-7762.

Effective February 19, 2020, Henry Gabbay resigned as a Trustee of the Trust.

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisers

BlackRock International Limited

Edinburgh, EH3 8BL

United Kingdom

BlackRock (Singapore) Limited^(a)

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 BlackRock Core Bond Portfolio.

142 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Additional Information

General Information

Householding

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

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on FormN-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on FormN-Q. The Funds’ FormsN-PORT andN-Q are available on the SEC’s website at 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) atblackrock.com; and (3) on the SEC’s website at 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) atblackrock.com or by calling (800)441-7762 and (2) on the SEC’s website at sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup ofopen-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income andtax-exempt investing. Visitblackrock.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 visitblackrock.comfor more information.

Automatic Investment Plans

Investor class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

ADDITIONAL INFORMATION 143

Additional Information  (continued)

BlackRock Privacy Principles

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

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

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

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

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

144 2020 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS

Glossary of Terms Used in this Report

Currency
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CNH	Chinese Yuan Offshore
CNY	Chinese Yuan
COP	Colombian Peso
EGP	Egyptian Pound
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
JPY	Japanese Yen
KRW	South Korean Won
KZT	Kazakhstani Tenge
MXN	Mexican Peso
NZD	New Zealand Dollar
RUB	New Russian Ruble
USD	United States Dollar
ZAR	South African Rand

Portfolio Abbreviations

BZDIOVER	Overnight Brazil CETIP — Interbank Rate
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
LIBOR	London Interbank Offered Rate
MSCI	Morgan Stanley Capital International
MXIBTIIE	Mexico Interbank TIIE28-Day
OTC	Over-the-counter
PIK	Payment-In-Kind
RB	Revenue Bonds
REIT	Real Estate Investment Trust
S&P	Standard & Poor’s
SCA	Svenska Cellulosa Aktiebolaget
SOFR	Secured Overnight Financing Rate
SPDR	Standard & Poor’s Depositary Receipts
TBA	To-be-announced

GLOSSARYOF TERMS USEDINTHIS REPORT 145

Want to know more?

blackrock.com    |    800-441-7762

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the 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.

Taxable3-3/20-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 previousForm N-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 Rule15d-15(b) under the Securities Exchange Act of 1934, as amended.
	(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 –	Disclosure of Securities Lending Activities forClosed-End Management Investment
	Companies – Not Applicable
Item 13 –	Exhibits attached hereto
	(a)(1) – Code of Ethics – Not Applicable to this semi-annual report
	(a)(2) – Section 302 Certifications are attached
	(a)(3) – Not Applicable

2

(a)(4) – Not Applicable

(b) – Section 906 Certifications are attached

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 4, 2020

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 4, 2020

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

Date: June 4, 2020

4