BlackRock Funds V N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-23339

Name of Fund: BlackRock Funds V

BlackRock Inflation Protected 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, 50 Hudson Yards, New York, NY 10001

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

Date of fiscal year end: 12/31/2023

Date of reporting period: 06/30/2023

Item 1 – Report to Stockholders

(a)

The Report to Shareholders is attached herewith.

(b)

Not Applicable

June

30,

2023

Not

FDIC

Insured

-

May

Lose

Value

-

No

Bank

Guarantee

2023

Semi-Annual

Report

(Unaudited)

BlackRock

Funds

V

BlackRock

Inflation

Protected

Bond

Portfolio

Dear

Shareholder,

Despite

an

uncertain

economic

landscape

during

the

12-month

reporting

period

ended

June

30,

2023,

the

resilience

of

the

U.S.

economy

in

the

face

of

ever

tighter

financial

conditions

provided

an

encouraging

backdrop

for

investors.

Inflation

remained

elevated

as

labor

costs

grew

rapidly

and

unemployment

rates

reached

the

lowest

levels

in

decades.

However,

inflation

moderated

substantially

as

the

period

continued,

while

ongoing

strength

in

consumer

spending

backstopped

the

economy.

Equity

returns

were

strong,

as

continued

job

growth

eased

investors’

concerns

about

the

economy’s

durability.

The

U.S.

economy

resumed

growth

in

the

third

quarter

of

2022

and

continued

to

expand

thereafter.

Most

major

classes

of

equities

advanced

significantly,

including

large-

and

small-capitalization

U.S.

stocks

and

international

equities

from

developed

markets.

Emerging

market

equities

also

gained,

although

at

a

substantially

slower

pace,

pressured

by

high

interest

rates

and

falling

commodities

prices.

The

10-year

U.S.

Treasury

yield

rose

during

the

reporting

period,

driving

its

price

down,

as

investors

reacted

to

elevated

inflation

and

attempted

to

anticipate

future

interest

rate

changes.

The

corporate

bond

market

also

faced

inflationary

headwinds,

although

high-yield

corporate

bond

prices

fared

significantly

better

than

investment-

grade

bonds

as

demand

from

yield-seeking

investors

remained

strong.

The

U.S.

Federal

Reserve

(the

“Fed”),

acknowledging

that

inflation

has

been

more

persistent

than

expected,

raised

interest

rates

seven

times.

Furthermore,

the

Fed

wound

down

its

bond-buying

programs

and

incrementally

reduced

its

balance

sheet

by

not

replacing

securities

that

reach

maturity.

However,

the

Fed

declined

to

raise

interest

rates

at

its

June

2023

meeting,

which

made

it

the

first

meeting

without

a

rate

increase

since

the

tightening

cycle

began

in

early

2022.

Supply

constraints

have

become

an

embedded

feature

of

the

new

macroeconomic

environment,

making

it

difficult

for

developed

economies

to

increase

production

without

sparking

higher

inflation.

Geopolitical

fragmentation

and

an

aging

population

exacerbate

these

constraints,

keeping

the

labor

market

tight

and

wage

growth

high.

Although

the

Fed

has

decelerated

the

pace

of

interest

rate

hikes

and

most

recently

opted

for

a

pause,

we

believe

that

the

new

economic

regime

means

that

the

Fed

will

need

to

maintain

high

rates

for

an

extended

period

to

keep

inflation

under

control.

Furthermore,

ongoing

structural

changes

may

mean

that

the

Fed

will

be

hesitant

to

cut

interest

rates

in

the

event

of

faltering

economic

activity

lest

inflation

accelerate

again.

We

believe

investors

should

expect

a

period

of

higher

volatility

as

markets

adjust

to

the

new

economic

reality

and

policymakers

attempt

to

adapt.

While

we

favor

an

overweight

to

developed

market

equities

in

the

long

term,

we

prefer

an

underweight

stance

in

the

near

term.

Expectations

for

corporate

earnings

remain

elevated,

which

seems

inconsistent

with

macroeconomic

constraints.

Nevertheless,

we

are

overweight

on

emerging

market

stocks

in

the

near-term

as

growth

trends

for

emerging

markets

appear

brighter.

We

also

believe

that

stocks

with

an

A.I.

tilt

should

benefit

from

an

investment

cycle

that

is

set

to

support

revenues

and

margins.

We

are

neutral

on

credit

overall

amid

tightening

credit

and

financial

conditions,

however

there

are

selective

opportunities

in

the

near

term.

For

fixed

income

investing

with

a

six-

to

twelve-month

horizon,

we

see

the

most

attractive

investments

in

short-term

U.S.

Treasuries,

U.S.

inflation-linked

bonds,

U.S.

mortgage-backed

securities,

and

emerging

market

bonds

denominated

in

local

currency.

Overall,

our

view

is

that

investors

need

to

think

globally,

position

themselves

to

be

prepared

for

a

decarbonizing

economy,

and

be

nimble

as

market

conditions

change.

We

encourage

you

to

talk

with

your

financial

advisor

and

visit

blackrock.com

for

further

insight

about

investing

in

today’s

markets.

Sincerely,

Rob

Kapito

President,

BlackRock

Advisors,

LLC

The

Markets

in

Review

Rob

Kapito

President,

BlackRock

Advisors,

LLC

Past

performance

is

not

an

indication

of

future

results.

Index

performance

is

shown

for

illustrative

purposes

only.

You

cannot

invest

directly

in

an

index.

Total

Returns

as

of

June

30,

2023

6-Month

12-Month

U.S.

large

cap

equities

(S&P

500

®

Index)

16.89%

19.59%

U.S.

small

cap

equities

(Russell

2000

®

Index)

8.09

12.31

International

equities

(MSCI

Europe,

Australasia,

Far

East

Index)

11.67

18.77

Emerging

market

equities

(MSCI

Emerging

Markets

Index)

4.89

1.75

3-month

Treasury

bills

(ICE

BofA

3-Month

U.S.

Treasury

Bill

Index)

2.25

3.60

U.S.

Treasury

securities

(ICE

BofA

10-Year

U.S.

Treasury

Index)

1.70

(3.97)

U.S.

investment

grade

bonds

(Bloomberg

U.S.

Aggregate

Bond

Index)

2.09

(0.94)

Tax-exempt

municipal

bonds

(Bloomberg

Municipal

Bond

Index)

2.67

3.19

U.S.

high

yield

bonds

(Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index)

5.38

9.07

This

Page

is

not

Part

of

Your

Fund

Report

2

Table

of

Contents

Page

3

The

Markets

in

Review

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

2

Semi-Annual

Report:

Fund

Summary

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

4

The

Benefits

and

Risks

of

Leveraging

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

6

About

Fund

Performance 

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

6

Disclosure

of

Expenses

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

7

Derivative

Financial

Instruments

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

7

Consolidated

Financial

Statements:

Consolidated

Schedule

of

Investments

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

8

Consolidated

Statement

of

Assets

and

Liabilities

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

21

Consolidated

Statement

of

Operations

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

23

Consolidated

Statements

of

Changes

in

Net

Assets

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

24

Consolidated

Financial

Highlights

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

25

Notes

to

Consolidated

Financial

Statements

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

29

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

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

41

Additional

Information

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

44

Glossary

of

Terms

Used

in

this

Report

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

46

Fund

Summary

as

of

June

30,

2023

2023

BlackRock

Semi-Annual

Report

to

Shareholders

4

BlackRock

Inflation

Protected

Bond

Portfolio

Investment

Objective

BlackRock

Inflation

Protected

Bond

Portfolio’s

(the

“Fund”)

investment

objective

is

to

seek

to

maximize

real

return,

consistent

with

preservation

of

real

capital

and

prudent

investment

management.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

six-month

period

ended

June

30,

2023,

all

of

the

Fund’s

share

classes

outperformed

its

benchmark,

the

Bloomberg

U.S.

Treasury

Inflation

Protected

Securities

Index,

with

the

exception

of

the

Investor

C

shares

which

underperformed.

What

factors

influenced

performance?

Returns

for

Treasury

Inflation

Protected

Securities

(“TIPS”)

are

influenced

by

the

direction

of

nominal

Treasury

yields

as

well

as

changes

in

inflation

expectations.

Over

the

period,

the

Fund’s

tactical

positioning

with

respect

to

U.S.

duration

and

corresponding

interest

rate

sensitivity

was

the

most

notable

contributor

to

performance

relative

to

the

benchmark.

The

Fund

began

the

period

overweight

duration

on

the

view

that

an

easing

in

inflation

increased

the

probability

of

the

Fed

being

able

to

manage

a

soft

landing

for

the

economy.

As

that

narrative

was

adopted

by

the

market,

Treasury

yields

moved

lower

in

January

2023.

The

Fund

then

moved

to

an

underweight

duration

stance

in

early

February

2023,

benefiting

returns

as

the

market

priced

in

more

aggressive

Fed

policy,

pushing

yields

higher.

The

Fund’s

allocation

to

rental

linked

commercial

mortgage-

backed

securities

and

agency

mortgage-backed

securities

also

contributed

over

the

period.

The

Fund’s

short

Japanese

interest

rate

positioning

was

the

only

notable

detractor

from

performance.

While

other

developed

market

central

banks

continued

to

be

more

hawkish

than

expected,

the

Bank

of

Japan

remained

dovish,

keeping

rates

there

at

ultra-low

levels.

Describe

recent

portfolio

activity.

While

the

Fund

maintained

an

above-benchmark

duration

stance

relative

to

the

benchmark,

it

added

exposure

to

the

short

end

of

the

yield

curve

during

the

reporting

period

on

the

view

that

rates

in

that

segment

were

at

attractive

levels

after

the

Fed’s

policy

tightening.

The

Fund

utilized

derivatives

in

implementing

its

strategy,

most

notably

futures

contracts.

The

Fund’s

use

of

derivatives

aided

performance

for

the

period.

Describe

portfolio

positioning

at

period

end.

The

Fund

was

long

U.S.

duration

as

of

the

end

of

the

reporting

period

based

on

the

investment

adviser’s

belief

that

inflation

would

be

lower

than

the

market

expected

in

the

second

half

quarter

of

2023.

The

Fund

was

neutrally

positioned

with

respect

to

U.S.

inflation

despite

attractive

TIPS

valuations

on

expectations

for

a

softening

inflationary

backdrop.

The

Fund

continues

to

hold

an

underweight

to

Japanese

interest

rates

and

has

modest

exposure

to

other

sectors

in

fixed

income.

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.

Performance

N/A

–

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

Average

Annual

Total

Returns

(a)(b)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

6-Month

Total

Returns

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

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

8.03‌%

7.86‌%

2.20‌%

(0.80‌)%

N/A‌

2.61‌%

N/A‌

1.93‌%

N/A‌

Investor

A

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

7.46‌

7.28‌

2.25‌

(0.98‌)

(4.94‌)%

2.37‌

1.54‌%

1.66‌

1.25‌%

Investor

C

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

7.01‌

6.92‌

1.72‌

(1.75‌)

(2.69‌)

1.58‌

1.58‌

1.06‌

1.06‌

Class

K

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

8.08‌

8.02‌

2.22‌

(0.76‌)

N/A‌

2.65‌

N/A‌

2.01‌

N/A‌

Bloomberg

U.S.

Treasury

Inflation

Protected

Securities

Index

(c)

.

......

—‌

—‌

1.87‌

(1.40‌)

N/A‌

2.49‌

N/A‌

2.08‌

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees.

(b)

Under

normal

circumstances,

the

Fund

invests

at

least

80%

of

its

assets

in

inflation-indexed

bonds

of

varying

maturities

issued

by

the

U.S.

and

non-U.S.

governments,

their

agencies

or

instrumentalities

and

U.S.

and

non-U.S.

corporations.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

BlackRock

Inflation

Protected

Bond

Portfolio

(the

“Predecessor

Fund”),

a

series

of

BlackRock

Funds

II,

through

a

tax-free

reorganization

(the

“Reorganization”).

The

Predecessor

Fund

is

the

performance

and

accounting

survivor

of

the

Reorganization.

(c)

An

unmanaged

index

that

measures

the

performance

of

the

inflation-protected

public

obligations

of

the

U.S.

Treasury.

Fund

Summary

as

of

June

30,

2023

(continued)

5

Fund

Summary

BlackRock

Inflation

Protected

Bond

Portfolio

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

Hypothetical

5%

Return

Expenses

Paid

During

the

Period

Including

Interest

Expense

Excluding

Interest

Expense

Annualized

Expense

Ratio

Beginning

Account

Value

(01/01/23)

Ending

Account

Value

(06/30/23)

Including

Interest

Expense

(a)

Excluding

Interest

Expense

(a)

Beginning

Account

Value

(01/01/23)

Ending

Account

Value

(06/30/23)

Expenses

Paid

During

the

Period

(a)

Ending

Account

Value

(06/30/23)

Expenses

Paid

During

the

Period

(a)

Including

Interest

Expense

Excluding

Interest

Expense

Institutional

....

$

1,000.00‌

$

1,022.00‌

$

4.26‌

$

1.70‌

$

1,000.00‌

$

1,020.58‌

$

4.26‌

$

1,023.11‌

$

1.71‌

0.85‌%

0.34‌%

Investor

A

.....

1,000.00‌

1,022.50‌

5.52‌

2.96‌

1,000.00‌

1,019.34‌

5.51‌

1,021.87‌

2.96‌

1.10‌

0.59‌

Investor

C

.....

1,000.00‌

1,017.20‌

9.25‌

6.70‌

1,000.00‌

1,015.62‌

9.25‌

1,018.15‌

6.71‌

1.85‌

1.34‌

Class

K

......

1,000.00‌

1,022.20‌

4.01‌

1.45‌

1,000.00‌

1,020.83‌

4.01‌

1,023.36‌

1.45‌

0.80‌

0.29‌

(a)

For

each

class

of

the

Fund,

expenses

are

equal

to

the

annualized

expense

ratio

for

the

class,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

181/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

U.S.

Treasury

Obligations

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

88.1‌

%

U.S.

Government

Sponsored

Agency

Securities

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

7.4‌

Asset-Backed

Securities

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

2.3‌

Non-Agency

Mortgage-Backed

Securities

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

1.4‌

Foreign

Government

Obligations

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

0.6‌

Corporate

Bonds

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

0.1‌

Investment

Companies

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

0.1‌

Common

Stocks

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

0.0‌

(b)

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(c)

Percent

of

Total

Investments

(a)

AAA/Aaa

(d)

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

97.0‌

%

AA/Aa

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

0.0‌

(b)

A

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

0.5‌

BB/Ba

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

0.0‌

(b)

B

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

0.0‌

(b)

CCC/Caa

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

0.0‌

(b)

C

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

0.0‌

(b)

NR

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

2.5‌

(a)

Excludes

short-term

securities,

options

purchased,

options

written

and

TBA

sale

commitments.

(b)

Represents

less

than

0.1%

of

the

Fund's

total

investments.

(c)

For

financial

reporting

purposes,

credit

quality

ratings

shown

above

reflect

the

highest

rating

assigned

by

either

S&P

Global

Ratings

or

Moody’s

Investors

Service

if

ratings

differ.

These

rating

agencies

are

independent,

nationally

recognized

statistical

rating

organizations

and

are

widely

used.

Investment

grade

ratings

are

credit

ratings

of

BBB/Baa

or

higher.

Below

investment

grade

ratings

are

credit

ratings

of

BB/Ba

or

lower.

Investments

designated

NR

are

not

rated

by

either

rating

agency.

Unrated

investments

do

not

necessarily

indicate

low

credit

quality.

Credit

quality

ratings

are

subject

to

change.

(d)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

The

Benefits

and

Risks

of

Leveraging

2023

BlackRock

Semi-Annual

Report

to

Shareholders

6

The

Fund

may

utilize

leverage

to

seek

to

enhance

returns

and

net

asset

value

(“NAV”).

However,

there

is

no

guarantee

that

these

objectives

can

be

achieved

in

all

interest

rate

environments.  

The

Fund

may

utilize

leverage

by

entering

into

reverse

repurchase

agreements. 

In

general,

the

concept

of

leveraging

is

based

on

the

premise

that

the

financing

cost

of

leverage,

which

is

based

on

short-term

interest

rates,

is

normally

lower

than

the

income

earned

by

the

Fund

on

its

longer-term

portfolio

investments

purchased

with

the

proceeds

from

leverage.

To

the

extent

that

the

total

assets

of

the

Fund

(including

the

assets

obtained

from

leverage)

are

invested

in

higher-yielding

portfolio

investments,

the

Fund’s

shareholders

benefit

from

the

incremental

net

income.

The

interest

earned

on

securities

purchased

with

the

proceeds

from

leverage

is

distributed

to

the

Fund’s

shareholders,

and

the

value

of

these

portfolio

holdings

is

reflected

in

the

Fund’s

per

share

NAV.

However,

in

order

to

benefit

shareholders,

the

return

on

assets

purchased

with

leverage

proceeds

must

exceed

the

ongoing

costs

associated

with

the

leverage.

If

interest

and

other

ongoing

costs

of

leverage

exceed

the

Fund’s

return

on

assets

purchased

with

leverage

proceeds,

income

to

shareholders

is

lower

than

if

the

Fund

had

not

used

leverage.

Furthermore,

the

value

of

the

Fund’s

portfolio

investments

generally

varies

inversely

with

the

direction

of

long-term

interest

rates,

although

other

factors

can

also

influence

the

value

of

portfolio

investments.

As

a

result,

changes

in

interest

rates

can

influence

the

Fund’s

NAV

positively

or

negatively

in

addition

to

the

impact

on

the

Fund’s

performance

from

leverage.

Changes

in

the

direction

of

interest

rates

are

difficult

to

predict

accurately,

and

there

is

no

assurance

that

the

Fund’s

leveraging

strategy

will

be

successful.

The

use

of

leverage

also

generally

causes

greater

changes

in

the

Fund’s

NAV

and

dividend

rates

than

comparable

portfolios

without

leverage.

In

a

declining

market,

leverage

is

likely

to

cause

a

greater

decline

in

the

NAV

of the

Fund’s

shares

than

if

the

Fund

were

not

leveraged.

In

addition,

the

Fund

may

be

required

to

sell

portfolio

securities

at

inopportune

times

or

at

distressed

values

in

order

to

comply

with

regulatory

requirements

applicable

to

the

use

of

leverage

or

as

required

by

the

terms

of

the

leverage

instruments,

which

may

cause

the

Fund

to

incur

losses.

The

use

of

leverage

may

limit the

Fund’s

ability

to

invest

in

certain

types

of

securities

or

use

certain

types

of

hedging

strategies.

The

Fund

incurs

expenses

in

connection

with

the

use

of

leverage,

all

of

which

are

borne

by

the

Fund’s

shareholders

and

may

reduce

income.

About

Fund

Performance 

Institutional Shares

and

Class

K

Shares

 are

not

subject

to

any

sales

charge.

These

shares

bear

no

ongoing

distribution

or

service

fees

and

are

available

only

to

certain

eligible

investors.

Investor

A

Shares

are

subject

to

a

maximum

initial

sales

charge

(front-end

load)

of 

4.00

%

and

a

service

fee

of

0.25%

per

year

(but

no

distribution

fee).

Certain

redemptions

of

these

shares

may

be

subject

to

a

contingent

deferred

sales

charge

(“CDSC”)

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

These

shares

are

generally

available

through

financial

intermediaries.

Investor

C

Shares

 are

subject

to

a 1.00%

CDSC

if

redeemed

within

one

year

of

purchase.

In

addition,

these

shares

are

subject

to

a

distribution

fee

of

0.75

%

per

year

and

a

service

fee

of 

0.25%

per

year.

These

shares

are

generally

available

through

financial

intermediaries.

These

shares

automatically

convert

to

Investor

A

Shares

after

approximately eight

years.

Past

performance

is

not

an

indication

of

future

results.

Financial

markets

have

experienced

extreme

volatility

and

trading

in

many

instruments

has

been

disrupted.

These

circumstances

may

continue

for

an

extended

period

of

time

and

may

continue

to

affect

adversely

the

value

and

liquidity

of

the

Fund’s

investments.

As

a

result,

current

performance

may

be

lower

or

higher

than

the

performance

data

quoted.

Refer

to

blackrock.com 

to

obtain

performance

data

current

to

the

most

recent

month-end.

Performance

results

do

not

reflect

the

deduction

of

taxes

that

a

shareholder

would

pay

on

Fund

distributions

or

the

redemption

of

Fund

shares.

Figures

shown

in

the

performance

table(s) assume

reinvestment

of

all

distributions,

if

any,

at 

NAV

on

the

ex-dividend

date

or

payable

date,

as

applicable.

Investment

return

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Distributions

paid

to

each

class

of

shares

will

vary

because

of

the

different

levels

of

service,

distribution

and

transfer

agency

fees

applicable

to

each

class,

which

are

deducted

from

the

income

available

to

be

paid

to

shareholders. 

BlackRock

Advisors,

LLC

(the

“Manager”),

the

Fund’s

investment

adviser,

has

contractually

and/or

voluntarily

agreed

to

waive

and/or

reimburse

a

portion

of

the

Fund’s

expenses.

Without

such

waiver(s)

and/or

reimbursement(s),

the

Fund’s

performance

would

have

been

lower.

With

respect

to

the

Fund’s

voluntary

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

waive

and/or

reimburse

or

to

continue

waiving

and/or

reimbursing

its

fees

and

such

voluntary

waiver(s)

may

be

reduced

or

discontinued

at

any

time.

With

respect

to

the

Fund’s

contractual

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

continue

waiving

and/or

reimbursing

its

fees

after

the

applicable

termination

date

of

such

agreement.

See

the

Notes

to

Consolidated

Financial

Statements

for

additional

information

on

waivers

and/or

reimbursements. 

The

standardized

30-day

yield

includes

the

effects

of

any

waivers

and/or

reimbursements.

The

unsubsidized

30-day

yield

excludes

the

effects

of

any

waivers

and/or

reimbursements. 

Disclosure

of

Expenses

7

Disclosure

of

Expenses

/

Derivative

Financial

Instruments

Shareholders

of

the

Fund

may

incur

the

following

charges:

(a)

transactional

expenses,

such

as

sales

charges;

and

(b)

operating

expenses,

including

investment

advisory

fees, administration

fees,

service

and

distribution

fees,

including

12b-1

fees,

acquired

fund

fees

and

expenses, and

other

fund

expenses.

The

expense

example

shown

(which

is

based

on

a

hypothetical

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

through

the

end

of

the

period)

is

intended

to

assist

shareholders

both

in

calculating

expenses

based

on

an

investment

in

the

Fund

and

in

comparing

these

expenses

with

similar

costs

of

investing

in

other

mutual

funds.

The

expense

example

provides

information

about

actual

account

values

and

actual

expenses.

Annualized

expense

ratios

reflect

contractual

and

voluntary

fee

waivers,

if

any.

In

order

to

estimate

the

expenses

a

shareholder

paid

during

the

period

covered

by

this

report,

shareholders

can

divide

their

account

value

by

$1,000

and

then

multiply

the

result

by

the

number

corresponding

to

their share

class

under

the

heading

entitled

“Expenses

Paid

During

the

Period.” 

The

expense

example

also

provides

information

about

hypothetical

account

values

and

hypothetical

expenses

based

on the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses.

In

order

to

assist

shareholders

in

comparing

the

ongoing

expenses

of

investing

in

the

Fund

and

other

funds,

compare

the

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

shareholder

reports

of

other

funds. 

The

expenses

shown

in

the

expense

example

are

intended

to

highlight

shareholders’

ongoing

costs

only

and

do

not

reflect

transactional

expenses,

such

as

sales

charges,

if

any.

Therefore,

the

hypothetical

example is

useful

in

comparing

ongoing

expenses

only

and

will

not

help

shareholders

determine

the

relative

total

expenses

of

owning

different

funds.

If

these

transactional

expenses

were

included,

shareholder

expenses

would

have

been

higher.

Derivative

Financial

Instruments

The

Fund

may

invest

in

various

derivative

financial

instruments.

These

instruments

are

used

to

obtain

exposure

to

a

security,

commodity,

index,

market,

and/or

other

assets

without

owning

or

taking

physical

custody

of

securities,

commodities

and/or

other

referenced

assets

or

to

manage

market,

equity,

credit,

interest

rate,

foreign

currency

exchange

rate,

commodity

and/or

other

risks.

Derivative

financial

instruments

may

give

rise

to

a

form

of

economic

leverage

and

involve

risks,

including

the

imperfect

correlation

between

the

value

of

a

derivative

financial

instrument

and

the

underlying

asset,

possible

default

of

the

counterparty

to

the

transaction

or

illiquidity

of

the

instrument. Pursuant

to Rule

18f-4

under

the

1940

Act,

among

other

things,

the

Fund

must

either

use

derivative

financial

instruments

with

embedded

leverage

in

a

limited

manner

or

comply

with

an

outer

limit

on

fund

leverage

risk

based

on

value-at-risk.

The

Fund’s

successful

use

of

a

derivative

financial

instrument

depends

on

the

investment

adviser’s

ability

to

predict

pertinent

market

movements

accurately,

which

cannot

be

assured.

The

use

of

these

instruments

may

result

in

losses

greater

than

if

they

had

not

been

used,

may

limit

the

amount

of

appreciation the

Fund

can

realize

on

an

investment

and/or

may

result

in

lower

distributions

paid

to

shareholders.

The

Fund’s

investments

in

these

instruments,

if

any,

are

discussed

in

detail

in

the

Notes

to

Consolidated

Financial

Statements.

2023

BlackRock

Semi-Annual

Report

to

Shareholders

Consolidated

Schedule

of

Investments

(unaudited)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

8

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Pa

r

(

000)

Value

Asset-Backed

Securities

United

States

—

2.7%

(a)

AMSR

Trust

Series

2020-SFR4,

Class

E2,

2.46%,

11/17/37

..........

USD

3,000

$

2,679,246

Series

2020-SFR5,

Class

E2,

2.93%,

11/17/37

..........

3,000

2,715,550

Series

2021-SFR1,

Class

E2,

2.90%,

06/17/38

(b)

.........

3,700

3,023,442

Series

2021-SFR2,

Class

E2,

2.58%,

08/17/38

..........

2,000

1,703,915

Series

2022-SFR1,

Class

E2,

4.64%,

03/17/39

..........

4,912

4,368,596

FRTKL,

Series

2021-SFR1,

Class

E2,

2.52%,

09/17/38

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

4,000

3,394,524

Home

Partners

of

America

Trust

Series

2021-2,

Class

E2,

2.95%,

12/17/26

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

3,858

3,097,908

Series

2021-3,

Class

E2,

3.35%,

01/17/41

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

3,697

3,061,543

Mill

City

Solar

Loan

Ltd.,

Series

2019-

1A,

Class

A,

4.34%,

03/20/43

...

996

886,132

New

Residential

Mortgage

Loan

Trust,

Series

2022-SFR1,

Class

E2,

3.70%,

02/17/39

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

4,000

3,414,899

Progress

Residential

Trust

Series

2019-SFR3,

Class

G,

4.12%,

09/17/36

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

3,200

3,053,847

Series

2020-SFR1,

Class

E,

3.03%,

04/17/37

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

3,000

2,791,987

Series

2020-SFR3,

Class

E,

2.30%,

10/17/27

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

3,000

2,692,230

Series

2021-SFR10,

Class

E2,

3.67%,

12/17/40

..........

798

670,257

Series

2021-SFR11,

Class

E2,

3.53%,

01/17/39

..........

4,000

3,319,998

Series

2021-SFR4,

Class

E2,

2.56%,

05/17/38

..........

3,455

2,980,502

Series

2021-SFR4,

Class

F,

3.41%,

05/17/38

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

1,000

873,080

Series

2021-SFR8,

Class

E2,

2.53%,

10/17/38

..........

4,000

3,393,873

Series

2021-SFR9,

Class

E2,

3.01%,

11/17/40

..........

3,500

2,851,620

Series

2022-SFR1,

Class

E2,

3.99%,

02/17/41

..........

4,000

3,397,482

Series

2022-SFR2,

Class

E2,

4.80%,

04/17/27

..........

3,000

2,729,669

Tricon

American

Homes

Trust

Series

2020-SFR1,

Class

E,

3.54%,

07/17/38

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

2,000

1,821,789

Series

2020-SFR2,

Class

E2,

3.08%,

11/17/39

..........

4,000

3,388,396

Tricon

Residential

Trust,

Series

2021-

SFR1,

Class

E2,

2.89%,

07/17/38

3,500

3,073,409

65,383,894

Total

Asset-Backed

Securities

—

2.7%

(Cost:

$75,648,032)

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

65,383,894

Security

Shares

Shares

Value

Common

Stocks

United

States

—

0.0%

Blackstone

Mortgage

Trust,

Inc.,

Class

A

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

20,000

$

416,200

Invitation

Homes,

Inc.

...........

15,000

516,000

932,200

Total

Common

Stocks

—

0.0%

(Cost:

$1,305,281)

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

932,200

Par

(000)

Pa

r

(

000)

Corporate

Bonds

China

—

0.0%

Central

China

Real

Estate

Ltd.,

7.25%

,

07/16/24

(c)

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

USD

545

49,050

China

Aoyuan

Group

Ltd.,

6.20%

,

03/24/26

(b)(c)(d)(e)

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

545

29,975

China

SCE

Group

Holdings

Ltd.,

7.00%

,

05/02/25

(c)

...........

545

76,060

CIFI

Holdings

Group

Co.

Ltd.,

4.45%

,

08/17/26

(b)(c)(d)(e)

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

545

58,587

Easy

Tactic

Ltd.,

7.50%

,

(7.50%

Cash

or

7.50%

PIK),

07/11/28

(f)

......

589

43,189

Fantasia

Holdings

Group

Co.

Ltd.,

10.88%

,

01/09/23

(b)(c)(d)(e)

.......

345

20,700

Jingrui

Holdings

Ltd.,

12.00%

,

07/25/22

(b)(c)(d)(e)

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

545

35,425

Kaisa

Group

Holdings

Ltd.,

11.70%

,

11/11/25

(b)(c)(d)(e)

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

545

32,700

KWG

Group

Holdings

Ltd.,

5.95%

,

08/10/25

(c)

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

545

57,225

Logan

Group

Co.

Ltd.,

4.50%

,

01/13/28

(b)(c)(d)(e)

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

545

52,129

Modern

Land

China

Co.

Ltd.

(b)(c)(d)(e)(f)

8.00%,

(8.00%

Cash

or

10.00%

PIK),

12/30/24

...........

155

8,516

9.00%,

(9.00%

Cash

or

11.00%

PIK),

12/30/25

...........

155

8,397

9.00%,

(9.00%

Cash

or

11.00%

PIK),

12/30/26

...........

155

7,735

9.00%,

(9.00%

Cash

or

11.00%

PIK),

12/30/27

...........

155

8,512

Powerlong

Real

Estate

Holdings

Ltd.,

6.25%

,

08/10/24

(c)

...........

345

31,661

Redco

Properties

Group

Ltd.,

9.90%

,

02/17/24

(b)(c)(d)(e)

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

545

38,142

Redsun

Properties

Group

Ltd.,

7.30%

,

01/13/25

(b)(c)(d)(e)

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

545

44,684

Ronshine

China

Holdings

Ltd.,

7.10%

,

01/25/25

(b)(c)(d)(e)

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

545

24,525

Sino-Ocean

Land

Treasure

III

Ltd.,

(5-

Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

3.26%),

6.95%

(b)(c)(g)

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

545

65,591

Sunac

China

Holdings

Ltd.,

7.00%

,

07/09/25

(b)(c)(d)(e)

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

545

87,200

Times

China

Holdings

Ltd.,

5.75%

,

01/14/27

(b)(c)(d)(e)

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

545

38,150

Yango

Justice

International

Ltd.,

8.25%

,

11/25/23

(b)(c)(d)(e)

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

545

5,450

Yuzhou

Group

Holdings

Co.

Ltd.,

6.35%

,

01/13/27

(b)(c)(d)(e)

........

345

18,975

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

9

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

China

(continued)

Zhenro

Properties

Group

Ltd.,

6.63%

,

01/07/26

(b)(c)(d)(e)

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

USD

545

$

21,800

864,378

Hong

Kong

—

0.0%

Melco

Resorts

Finance

Ltd.,

5.63%

,

07/17/27

(c)

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

545

489,737

Macau

—

0.1%

Champion

Path

Holdings

Ltd.,

4.85%

,

01/27/28

(c)

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

545

441,559

MGM

China

Holdings

Ltd.,

4.75%

,

02/01/27

(c)

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

545

491,181

Studio

City

Finance

Ltd.,

5.00%

,

01/15/29

(a)

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

545

404,494

1,337,234

Total

Corporate

Bonds

—

0.1%

(Cost:

$11,710,683)

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

2,691,349

Foreign

Government

Obligations

Spain

—

0.6%

Bonos

y

Obligaciones

del

Estado,

3.15%

,

04/30/33

(a)(c)

..........

EUR

13,895

14,856,554

United

Kingdom

—

0.0%

U.K.

Treasury

Inflation

Linked

Bonds,

0.25%

,

03/22/52

(c)

...........

GBP

893

938,344

Total

Foreign

Government

Obligations

—

0.6%

(Cost:

$15,538,699)

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

15,794,898

Shares

Shares

Investment

Companies

iShares

Residential

and

Multisector

Real

Estate

ETF

(h)

...........

32,341

2,369,625

Total

Investment

Companies

—

0.1%

(Cost:

$2,933,731)

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

2,369,625

Par

(000)

Pa

r

(

000)

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

1.4%

United

States

—

1.4%

(a)

BRAVO

Residential

Funding

Trust,

Series

2023-NQM3,

Class

A1,

4.85%,

09/25/62

(b)(i)

..........

USD

3,030

2,947,898

CIM

Trust,

Series

2023-I2,

Class

A1,

6.64%,

12/25/67

(b)(i)

..........

3,618

3,617,960

CSMC

Trust,

Series

2022-NQM5,

Class

A1,

5.17%,

05/25/67

(b)

........

5,808

5,634,915

Ellington

Financial

Mortgage

Trust,

Series

2021-3,

Class

A1,

1.24%,

09/25/66

(b)

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

3,683

2,834,432

Homeward

Opportunities

Fund

Trust,

Series

2022-1,

Class

A1,

5.08%,

07/25/67

(i)

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

2,837

2,732,993

JP

Morgan

Mortgage

Trust,

Series

2023-DSC1,

Class

A1,

4.62%,

07/25/63

(b)

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

1,597

1,483,729

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

OBX

Trust,

Series

2022-NQM9,

Class

A1A,

6.45%,

09/25/62

(b)(i)

.......

USD

3,675

$

3,670,209

PRKCM

Trust,

Series

2022-AFC2,

Class

A1,

5.33%,

08/25/57

(b)

....

912

887,521

SG

Residential

Mortgage

Trust

(b)

Series

2021-1,

Class

A1,

1.16%,

07/25/61

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

4,264

3,268,729

Series

2022-2,

Class

A1,

5.35%,

08/25/62

(i)

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

1,450

1,408,570

Verus

Securitization

Trust

(b)(i)

Series

2022-7,

Class

A1,

5.15%,

07/25/67

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

4,222

4,062,094

Series

2022-INV2,

Class

A1,

6.79%,

10/25/67

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

1,220

1,220,239

33,769,289

Commercial

Mortgage-Backed

Securities

—

0.2%

United

States

—

0.2%

(a)(b)

BX

Commercial

Mortgage

Trust

Series

2020-VIV2,

Class

C,

3.66%,

03/09/44

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

950

775,025

Series

2020-VIV3,

Class

B,

3.66%,

03/09/44

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

130

109,118

Extended

Stay

America

Trust

Series

2021-ESH,

Class

B,

(1-mo.

LIBOR

USD

at

1.38%

Floor

+

1.38%),

6.57%,

07/15/38

....

2,891

2,820,456

Series

2021-ESH,

Class

C,

(1-mo.

LIBOR

USD

at

1.70%

Floor

+

1.70%),

6.89%,

07/15/38

....

405

393,848

Series

2021-ESH,

Class

D,

(1-mo.

LIBOR

USD

at

2.25%

Floor

+

2.25%),

7.44%,

07/15/38

....

810

786,681

4,885,128

Total

Non-Agency

Mortgage-Backed

Securities

—

1.6%

(Cost:

$39,495,913)

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

38,654,417

U.S.

Government

Sponsored

Agency

Securities

Commercial

Mortgage-Backed

Securities

—

0.6%

Federal

Home

Loan

Mortgage

Corp.

Variable

Rate

Notes

(a)(b)

Series

2017-K62,

Class

B,

4.01%

,

 01/25/50

........

2,500

2,335,933

Series

2017-K65,

Class

B,

4.22%

,

 07/25/50

........

2,000

1,875,234

Series

2018-K73,

Class

B,

3.99%

,

 02/25/51

........

1,350

1,245,216

Series

2018-K82,

Class

B,

4.27%

,

 09/25/28

........

2,043

1,899,245

Series

2018-K83,

Class

B,

4.42%

,

 11/25/51

........

2,000

1,871,279

Series

2018-W5FX,

Class

CFX,

3.79%

,

 04/25/28

........

696

573,261

Series

2019-K91,

Class

B,

4.40%

,

 04/25/51

........

2,000

1,858,523

Series

2019-K94,

Class

B,

4.10%

,

 07/25/52

........

2,000

1,826,100

Series

2020-K737,

Class

B,

3.42%

,

 01/25/53

........

932

855,455

14,340,246

2023

BlackRock

Semi-Annual

Report

to

Shareholders

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

10

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

—

7.9%

Uniform

Mortgage-Backed

Securities

(j)

4.50%

,

 07/13/23

..........

USD

59,871

$

57,560,315

5.00%

,

 07/13/23

..........

69,574

68,171,532

5.50%

,

 07/13/23

..........

68,051

67,721,558

193,453,405

Total

U.S.

Government

Sponsored

Agency

Securities

—

8.5%  

(Cost:

$209,694,821)

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

207,793,651

U.S.

Treasury

Obligations

U.S.

Treasury

Inflation

Linked

Bonds

2.38%, 01/15/25

-

01/15/27

.....

85,505

85,116,062

2.00%, 01/15/26

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

33,981

33,525,878

1.75%, 01/15/28

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

30,889

30,526,894

3.63%, 04/15/28

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

31,623

33,938,264

2.50%, 01/15/29

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

28,522

29,368,758

3.88%, 04/15/29

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

36,693

40,532,082

3.38%, 04/15/32

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

13,211

15,019,558

2.13%, 02/15/40

-

02/15/41

.....

42,218

45,271,843

0.75%, 02/15/42

-

02/15/45

.....

88,452

73,977,895

0.63%, 02/15/43

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

30,064

24,643,373

1.38%, 02/15/44

(k)

...........

44,298

41,692,985

1.00%, 02/15/46

-

02/15/49

.....

67,419

58,111,460

0.88%, 02/15/47

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

28,897

24,221,008

0.25%, 02/15/50

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

29,801

20,816,804

0.13%, 02/15/51

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

31,407

20,928,028

0.13%, 02/15/52

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

36,411

24,123,395

1.50%, 02/15/53

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

17,637

17,139,743

U.S.

Treasury

Inflation

Linked

Notes

0.13%, 07/15/24

-

01/15/32

.....

999,295

922,199,938

0.25%, 01/15/25

-

07/15/29

.....

142,989

134,068,679

0.38%, 07/15/25

-

07/15/27

.....

218,703

206,612,367

0.63%, 01/15/26

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

71,316

67,997,727

1.63%, 10/15/27

(l)

...........

82,224

81,007,904

0.50%, 01/15/28

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

74,528

69,702,304

1.25%, 04/15/28

(l)

...........

68,691

66,458,452

0.75%, 07/15/28

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

64,876

61,468,398

0.88%, 01/15/29

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

55,645

52,663,185

0.63%, 07/15/32

(k)(l)(m)

.........

98,518

90,524,997

Security

Par

(000)

Par

(000)

Value

U.S.

Treasury

Obligations

(continued)

1.13%, 01/15/33

(l)

...........

USD

93,824

$

89,870,362

Total

U.S.

Treasury

Obligations

—

100.2%

(Cost:

$2,656,722,192)

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

2,461,528,343

Total

Long-Term

Investments

—

113.8%

(Cost:

$3,013,049,352)

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

2,795,148,377

Shares

Shares

Short-Term

Securities

Money

Market

Funds

—

0.1%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

4.98%

(h)(n)

....

2,604,864

2,604,864

Total

Short-Term

Securities

—

0.1%

(Cost:

$2,604,864)

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

2,604,864

Total

Options

Purchased

—

0.5%

(Cost:

$4,568,988

)

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

11,393,538

Total

Investments

Before

Options

Written

and

TBA

Sale

Commitments

—

114.4%

(Cost:

$3,020,223,204)

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

2,809,146,779

Total

Options

Written

—

(0.7)%

(Premiums

Received

—

$(6,047,544))

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

(15,457,201)

Par

(000)

Pa

r

(

000)

TBA

Sale

Commitments

Uniform

Mortgage-Backed

Securities,

4.50%, 07/13/23

(j)

...........

(59,871)

(57,560,315)

Total

TBA

Sale

Commitments

—

(2.3)%

(Proceeds:

$(57,719,353))

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

(57,560,315)

Total

Investments

Net

of

Options

Written

and

TBA

Sale

Commitments

—

111.4%

(Cost:

$2,956,456,307)

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

2,736,129,263

Liabilities

in

Excess

of

Other

Assets

—

(11.4)%

...........

(280,231,505)

Net

Assets

—

100.0

%

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

$

2,455,897,758

(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.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(c)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(d)

Issuer

filed

for

bankruptcy

and/or

is

in

default.

(e)

Non-income

producing

security.

(f)

Payment-in-kind

security

which

may

pay

interest/dividends

in

additional

par/shares

and/or

in

cash.

Rates

shown

are

the

current

rate

and

possible

payment

rates.

(g)

Perpetual

security

with

no

stated

maturity

date.

(h)

Affiliate

of

the

Fund.

(i)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(j)

Represents

or

includes

a

TBA

transaction.

(k)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

OTC

derivatives.

(l)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

reverse

repurchase

agreements.

(m)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

TBA

commitments.

(n)

Annualized

7-day

yield

as

of

period

end.

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

11

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the six

months

ended

June

30,

2023

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

12/31/22

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

06/30/23

Shares

Held

at

06/30/23

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

8,792,373

$

—

$

(6,187,509)

(a)

$

—

$

—

$

2,604,864

2,604,864

$

76,959

$

—

iShares

1-5

Year

Investment

Grade

Corporate

Bond

ETF

(b)

—

26,426,506

(26,490,325)

63,819

—

—

—

—

—

iShares

iBoxx

$

Investment

Grade

Corporate

Bond

ETF

(b)

.....

—

50,986,452

(50,805,617)

(180,835)

—

—

—

165,656

—

iShares

Residential

and

Multisector

Real

Estate

ETF

.

2,210,184

—

—

—

159,441

2,369,625

32,341

24,328

—

$

(117,016)

$

159,441

$

4,974,489

$

266,943

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

(b)

As

of

period

end,

the

entity

is

no

longer

held.

Reverse

Repurchase

Agreements

Counterparty

Interest

Rate

Trade

Date

Maturity

Date

Face

Value

Face

Value

Including

Accrued

Interest

Type

of

Non-Cash

Underlying

Collateral

Remaining

Contractual

Maturity

of

the

Agreements

Barclays

Capital,

Inc.

....

5.18

%

06/30/23

07/03/23  

$

41,194,782

$

41,200,710

U.S.

Treasury

Obligations

Overnight

TD

Securities

(USA)

LLC

.

5.20

06/30/23

07/03/23  

38,332,500

38,338,037

U.S.

Treasury

Obligations

Overnight

TD

Securities

(USA)

LLC

.

5.20

06/30/23

07/03/23  

28,650,000

28,654,138

U.S.

Treasury

Obligations

Overnight

TD

Securities

(USA)

LLC

.

5.20

06/30/23

07/03/23  

65,074,739

65,084,139

U.S.

Treasury

Obligations

Overnight

$

173,252,021

$

173,277,024

2023

BlackRock

Semi-Annual

Report

to

Shareholders

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

12

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

30-day

Federal

Funds

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

13

08/31/23

$

5,131

$

(522)

3-mo.

EURIBOR

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

21

06/17/24

5,510

(36,104)

3-mo.

SOFR

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

1,624

06/18/24

385,274

(1,224,414)

3-mo.

SONIA

Index

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

90

06/18/24

26,795

(181,692)

3-mo.

SOFR

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

618

09/17/24

147,161

(420,836)

3-mo.

SONIA

Index

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

179

09/17/24

53,363

(98,317)

3-mo.

Canadian

Bankers

Acceptance

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

2

09/18/24

359

(1,840)

(1,963,725)

Short

Contracts

Euro-BTP

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

61

09/07/23

7,729

(61,342)

Euro-OAT

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

52

09/07/23

7,286

2,325

Japan

10-Year

Bond

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

88

09/12/23

90,595

(412,766)

3-mo.

SONIA

Index

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

13

09/19/23

3,913

15,239

U.S.

Treasury

10-Year

Note

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

399

09/20/23

44,806

615,114

U.S.

Treasury

10-Year

Ultra

Note

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

36

09/20/23

4,266

32,473

U.S.

Treasury

Long

Bond

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

95

09/20/23

12,074

(37,275)

U.S.

Treasury

2-Year

Note

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

292

09/29/23

59,386

(15,909)

U.S.

Treasury

5-Year

Note

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

570

09/29/23

61,061

761,240

3-mo.

SOFR

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

2

12/17/24

478

4,557

903,656

$

(1,060,069)

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

EUR

1,112,000

GBP

953,740

Bank

of

America

NA

09/20/23

$

6,675

EUR

1,112,000

GBP

956,229

JPMorgan

Chase

Bank

NA

09/20/23

3,515

USD

321,822

AUD

468,000

Bank

of

New

York

Mellon

09/20/23

9,375

USD

363,462

CAD

479,000

Bank

of

New

York

Mellon

09/20/23

1,440

USD

9,686,200

EUR

8,826,676

BNP

Paribas

SA

09/20/23

16,718

USD

5,497,825

EUR

5,009,324

Toronto

Dominion

Bank

09/20/23

10,191

47,914

EUR

1,112,000

GBP

959,101

JPMorgan

Chase

Bank

NA

09/20/23

(133)

USD

1,217,916

GBP

959,000

Bank

of

America

NA

09/20/23

(268)

(401)

$

47,513

OTC

Barrier

Options

Purchased

Description

Type

of

Option

Counterparty

Expiration  

Date

Exercise

Price

Barrier

Price/Range

Notional

Amount

(000)

Value

Put

USD

Currency

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

Up

and

In

UBS

AG

08/01/23

JPY

144.00

JPY

147.50

USD

5,665

$

7,149

$

–

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

13

Exchange-Traded

Options

Purchased

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Call

3-mo.

SOFR

Interest

Futures

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

200

07/14/23

USD

94.81

USD

50,000

$

6,250

Put

Ally

Financial,

Inc.

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

1,015

09/15/23

USD

20.00

USD

2,742

27,913

3-mo.

SOFR

Interest

Futures

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

1,036

10/13/23

USD

94.38

USD

259,000

213,675

3-mo.

SOFR

Interest

Futures

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

1,036

10/13/23

USD

96.00

USD

259,000

1,016,575

3-mo.

SOFR

Interest

Futures

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

1,088

10/13/23

USD

94.88

USD

272,000

1,060,800

3-mo.

SOFR

Interest

Futures

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

1,632

10/13/23

USD

95.00

USD

408,000

1,989,000

3-mo.

SOFR

Interest

Futures

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

2,720

10/13/23

USD

95.63

USD

680,000

7,072,000

11,379,963

$

11,386,213

OTC

Dual

Binary

Options

Purchased

Description

(a)

Counterparty

Units

Expiration

Date

Notional

Amount

(000)

Value

Put

Payout

at

expiry

if

USDJPY

<

128.79

and

10-Year

JPY

TONAR

>

0.93

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

Citibank

NA

448,000

08/14/23

USD

57,698

$

176

(a)

Option

only

pays

if

both

terms

are

met

on

the

expiration

date.

Exchange-Traded

Options

Written

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Call

3-mo.

SOFR

Interest

Futures

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

299

07/14/23

USD

95.00

USD

74,750

$

(5,606)

Put

3-mo.

SOFR

Interest

Futures

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

1,036

10/13/23

USD

94.63

USD

259,000

(543,900)

3-mo.

SOFR

Interest

Futures

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

1,036

10/13/23

USD

95.75

USD

259,000

(705,775)

3-mo.

SOFR

Interest

Futures

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

1,088

10/13/23

USD

95.13

USD

272,000

(1,611,600)

3-mo.

SOFR

Interest

Futures

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

1,632

10/13/23

USD

95.25

USD

408,000

(2,856,000)

3-mo.

SOFR

Interest

Futures

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

2,720

10/13/23

USD

95.38

USD

680,000

(5,525,000)

(11,242,275)

$

(11,247,881)

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

Call

5-Year

Interest

Rate

Swap

(a)

.

3.31%

Semi-Annual

1-day

SOFR

Annual

Barclays

Bank

plc

06/14/24

3.31

%

USD

35,900

$

(631,528)

Put

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.05%

Semi-Annual

Barclays

Bank

plc

08/14/23

4.05

USD

27,370

(363,634)

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.11%

Semi-Annual

JPMorgan

Chase

Bank

NA

08/22/23

4.11

USD

13,159

(159,779)

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.15%

Semi-Annual

UBS

AG

08/22/23

4.15

USD

13,685

(157,511)

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.10%

Semi-Annual

JPMorgan

Chase

Bank

NA

08/23/23

4.10

USD

13,159

(161,841)

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.13%

Semi-Annual

UBS

AG

08/23/23

4.13

USD

13,685

(161,807)

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.18%

Semi-Annual

BNP

Paribas

SA

08/24/23

4.18

USD

26,317

(292,879)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

14

OTC

Interest

Rate

Swaptions

Written

(continued)

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.30%

Semi-Annual

JPMorgan

Chase

Bank

NA

08/31/23

4.30

%

USD

26,317

$

(242,494)

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.43%

Semi-Annual

JPMorgan

Chase

Bank

NA

08/31/23

4.43

USD

26,317

(196,277)

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.39%

Semi-Annual

JPMorgan

Chase

Bank

NA

09/05/23

4.39

USD

26,317

(213,158)

2-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

4.61%

Semi-Annual

Barclays

Bank

plc

09/05/23

4.61

USD

26,317

(144,781)

2-Year

Interest

Rate

Swap

(a)

.

1-day

SONIA

Annual

4.92%

Annual

Citibank

NA

09/07/23

4.92

GBP

23,160

(592,019)

5-Year

Interest

Rate

Swap

(a)

.

1-day

SOFR

Annual

3.31%

Semi-Annual

Barclays

Bank

plc

06/14/24

3.31

USD

35,900

(891,612)

(3,577,792)

$

(4,209,320)

(a)

Forward

settling

swaption.

Centrally

Cleared

Credit

Defa

ul

t

Swaps

—

Sell

Protection

Reference

Obligation/Index

Financing

Rate

Received

by

the

Fund

Payment

Frequency

Termination

Date

Credit

Rating

(a)

Notional

Amount

(000)

(b)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

Markit

CDX

North

American

High

Yield

Index

Series

40.V1

...........

5.00

%

Quarterly

06/20/28

B+

USD

19,346

$

569,887

$

329,896

$

239,991

(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

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1-day

EFFR

At

Termination

5.28%

At

Termination

07/26/23

(a)

09/20/23

USD

452,654

$

(19,713)

$

—

$

(19,713)

1-day

EFFR

At

Termination

5.28%

At

Termination

07/26/23

(a)

09/20/23

USD

448,743

(21,612)

—

(21,612)

0.27%

Annual

1-day

TONAR

Annual

N/A

01/05/25

JPY

406,270

(14,400)

—

(14,400)

0.21%

Annual

1-day

TONAR

Annual

N/A

02/03/25

JPY

265,022

(6,583)

—

(6,583)

0.20%

Annual

1-day

TONAR

Annual

N/A

02/03/25

JPY

265,022

(6,400)

—

(6,400)

0.89%

Annual

1-day

TONAR

Annual

N/A

02/15/33

JPY

263,238

(59,387)

—

(59,387)

0.90%

Annual

1-day

TONAR

Annual

N/A

02/15/33

JPY

263,238

(61,628)

—

(61,628)

0.90%

Annual

1-day

TONAR

Annual

N/A

02/15/33

JPY

526,476

(124,153)

—

(124,153)

0.92%

Annual

1-day

TONAR

Annual

N/A

02/15/33

JPY

762,482

(188,897)

—

(188,897)

3-mo.

BA

Semi-Annual

3.30%

Semi-Annual

N/A

03/27/33

CAD

202

(6,826)

14

(6,840)

3-mo.

BA

Semi-Annual

3.35%

Semi-Annual

N/A

03/30/33

CAD

205

(6,273)

(419)

(5,854)

3-mo.

BA

Semi-Annual

3.28%

Semi-Annual

N/A

04/25/33

CAD

608

(20,626)

(1,978)

(18,648)

3-mo.

BA

Semi-Annual

3.44%

Semi-Annual

N/A

05/09/33

CAD

206

(4,768)

—

(4,768)

3-mo.

BA

Semi-Annual

3.36%

Semi-Annual

N/A

05/12/33

CAD

209

(5,860)

(12)

(5,848)

3-mo.

BA

Semi-Annual

3.43%

Semi-Annual

N/A

05/15/33

CAD

627

(14,817)

(3,015)

(11,802)

3-mo.

BA

Semi-Annual

3.77%

Semi-Annual

N/A

05/30/33

CAD

214

(366)

(100)

(266)

3-mo.

BA

Semi-Annual

3.68%

Semi-Annual

N/A

05/31/33

CAD

216

(1,586)

—

(1,586)

3-mo.

BA

Semi-Annual

3.68%

Semi-Annual

N/A

06/01/33

CAD

199

(1,498)

—

(1,498)

3-mo.

BA

Semi-Annual

3.92%

Semi-Annual

N/A

06/13/33

CAD

40

315

—

315

1-day

REPO_CORRA

Semi-Annual

3.54%

Semi-Annual

N/A

06/15/33

CAD

20,788

109,932

—

109,932

1-day

REPO_CORRA

Semi-Annual

3.54%

Semi-Annual

N/A

06/22/33

CAD

4,229

23,242

—

23,242

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

15

Centrally

Cleared

Interest

Rate

Swaps

(continued)

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1-day

SONIA

Annual

4.28%

Annual

N/A

06/27/33

GBP

5,984

$

(56,217)

$

—

$

(56,217)

3-mo.

BA

Semi-Annual

3.85%

Semi-Annual

N/A

06/29/33

CAD

193

752

—

752

0.88%

Annual

1-day

TONAR

Annual

N/A

05/23/52

JPY

5,378

1,521

—

1,521

0.85%

Annual

1-day

TONAR

Annual

N/A

05/26/52

JPY

4,434

1,493

—

1,493

0.79%

Annual

1-day

TONAR

Annual

N/A

05/27/52

JPY

4,434

1,955

—

1,955

3.37%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

03/27/53

CAD

88

2,472

(15)

2,487

3.40%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

03/30/53

CAD

89

2,123

230

1,893

3.32%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

04/25/53

CAD

263

8,944

1,615

7,329

3.48%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

05/09/53

CAD

89

890

—

890

3.38%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

05/12/53

CAD

91

2,289

(75)

2,364

3.44%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

05/15/53

CAD

272

4,307

1,202

3,105

3.66%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

05/30/53

CAD

93

(1,483)

275

(1,758)

3.58%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

05/31/53

CAD

94

(435)

—

(435)

3.56%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

06/01/53

CAD

86

(207)

—

(207)

3.77%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

06/13/53

CAD

17

(546)

—

(546)

3.40%

Semi-Annual

1-day

REPO_CORRA

Semi-Annual

N/A

06/15/53

CAD

9,239

(250,347)

—

(250,347)

2.49%

Annual

1-day

SOFR

Annual

06/15/43

(a)

06/15/53

USD

280

(903)

—

(903)

3.36%

Semi-Annual

1-day

REPO_CORRA

Semi-Annual

N/A

06/22/53

CAD

1,850

(39,727)

—

(39,727)

3.75%

Annual

1-day

SONIA

Annual

N/A

06/27/53

GBP

2,620

51,500

—

51,500

3.64%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

06/29/53

CAD

84

(1,143)

—

(1,143)

$

(704,666)

$

(2,278)

$

(702,388)

(a)

Forward

swap.

Centrally

Cleared

Inflation

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Reference

Frequency

Rate

Frequency

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

2.99%

At

Termination

U.S.

Consumer

Price

Index

All

Items

Monthly

At

Termination

10/21/24

USD

7,275

$

(25,946)

$

—

$

(25,946)

2.31%

At

Termination

U.S.

Consumer

Price

Index

All

Items

Monthly

At

Termination

01/06/25

USD

7,070

39,199

—

39,199

2.16%

At

Termination

U.S.

Consumer

Price

Index

All

Items

Monthly

At

Termination

05/18/25

USD

6,665

45,009

—

45,009

2.41%

At

Termination

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

05/15/28

EUR

10,215

17,174

—

17,174

U.S.

Consumer

Price

Index

All

Items

Monthly

At

Termination

2.55%

At

Termination

02/10/33

USD

2,970

(4,993)

—

(4,993)

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.44%

At

Termination

05/15/33

EUR

10,215

(38,978)

—

(38,978)

2.53%

At

Termination

U.S.

Consumer

Price

Index

All

Items

Monthly

At

Termination

06/28/33

USD

130

187

—

187

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.43%

At

Termination

07/15/52

EUR

425

(58,130)

—

(58,130)

2.60%

At

Termination

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

08/15/52

EUR

830

60,487

—

60,487

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.44%

At

Termination

08/15/52

EUR

1,680

(214,083)

—

(214,083)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

16

Centrally

Cleared

Inflation

Swaps

(continued)

Paid

by

the

Fund

Received

by

the

Fund

Reference

Frequency

Rate

Frequency

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

2.49%

At

Termination

U.S.

Consumer

Price

Index

All

Items

Monthly

At

Termination

12/12/52

USD

1,020

$

(5,688)

$

—

$

(5,688)

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.64%

At

Termination

03/15/53

EUR

420

(11,958)

—

(11,958)

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.69%

At

Termination

03/15/53

EUR

420

(5,150)

—

(5,150)

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.70%

At

Termination

04/15/53

EUR

380

(541)

(1,102)

561

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.75%

At

Termination

05/15/53

EUR

400

8,117

—

8,117

2.45%

At

Termination

U.S.

Consumer

Price

Index

All

Items

Monthly

At

Termination

06/09/53

USD

1,299

2,774

—

2,774

2.46%

At

Termination

U.S.

Consumer

Price

Index

All

Items

Monthly

At

Termination

06/09/53

USD

1,299

(383)

—

(383)

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.73%

At

Termination

06/15/53

EUR

1,710

15,624

—

15,624

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.77%

At

Termination

06/15/53

EUR

933

23,934

—

23,934

Harmonised

Index

of

Consumer

Prices

ex.

Tobacco

All

Items

Monthly

At

Termination

2.77%

At

Termination

06/15/53

EUR

933

21,625

—

21,625

2.43%

At

Termination

U.S.

Consumer

Price

Index

All

Items

Monthly

At

Termination

06/30/53

USD

2,530

16,826

—

16,826

$

(114,894)

$

(1,102)

$

(113,792)

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1-day

EFFR

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

Effective

Federal

Funds

Rate

5.08

%

1-day

REPO_CORRA

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

Canadian

Overnight

Repo

Rate

4.75

1-day

SOFR

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

Secured

Overnight

Financing

Rate

5.07

1-day

SONIA

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

Sterling

Overnight

Index

Average

4.93

1-day

TONAR

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

Tokyo

Overnight

Average

Rate

(0.08)

3-mo.

BA

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

Canadian

Bankers

Acceptances

5.40

Balances

Reported

in

the

Consolidated

Statement

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps

and

Options

Written

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

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

$

333,232

$

(6,716)

$

700,286

$

(1,276,475)

$

—

Options

Written

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

N/A

N/A

114,913

(9,524,570)

(15,457,201)

(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

Consolidated

Statement

of

Assets

and

Liabilities

and

is

net

of

any

previously

paid

(received)

swap

premium

amounts.

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

17

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

As

of

period

end,

the

fair

values

of

derivative

financial

instruments

located

in

the

Consolidated

Statement

of

Assets

and

Liabilities

were

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Assets

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

appreciation

on

futures

contracts

(a)

......

$

—

$

—

$

—

$

—

$

1,430,948

$

—

$

1,430,948

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

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

—

—

—

47,914

—

—

47,914

Options

purchased

Investments

at

value

—

unaffiliated

(b)

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

—

—

27,913

7,149

11,358,300

176

(c)

11,393,538

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

239,991

—

—

208,778

251,517

700,286

$

—

$

239,991

$

27,913

$

55,063

$

12,998,026

$

251,693

$

13,572,686

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

......

$

—

$

—

$

—

$

—

$

2,491,017

$

—

$

2,491,017

Forward

foreign

currency

exchange

contracts

Unrealized

depreciation

on

forward

foreign

currency

exchange

contracts

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

—

—

—

401

—

—

401

Options

written

(d)

Options

written

at

value

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

—

—

—

—

15,457,201

—

15,457,201

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

911,166

365,309

1,276,475

$

—

$

—

$

—

$

401

$

18,859,384

$

365,309

$

19,225,094

(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

Consolidated

Statement

of

Assets

and

Liabilities,

only

current

day’s

variation

margin

is

reported

in

receivables

or

payables

and

the

net

cumulative

unrealized

appreciation

(depreciation)

is

included

in

accumulated

earnings

(loss).

(b)

Includes

options

purchased

at

value

as

reported

in

the

Consolidated

Schedule

of

Investments.

(c)

Includes

dual

binary

options

at

value.

(d)

Includes

forward

settling

swaptions.

For

the

period

ended

June

30,

2023,

the

effect

of

derivative

financial

instruments

in

the

Consolidated

Statement

of

Operations

was

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Net

Realized

Gain

(Loss)

from

Futures

contracts

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

$

—

$

—

$

(77,905)

$

—

$

20,197,708

$

—

$

20,119,803

Forward

foreign

currency

exchange

contracts

....

—

—

—

86,844

—

—

86,844

Options

purchased

(a)

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

—

—

(34,378)

(980,020)

(4,049,963)

—

(5,064,361)

Options

written

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

—

—

—

42,084

(686,195)

—

(644,111)

Swaps

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

—

18,677

653,327

—

5,173,708

(1,987,128)

3,858,584

$

—

$

18,677

$

541,044

$

(851,092)

$

20,635,258

$

(1,987,128)

$

18,356,759

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

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

$

—

$

—

$

—

$

—

$

(1,589,562)

$

—

$

(1,589,562)

Forward

foreign

currency

exchange

contracts

....

—

—

—

238,882

—

—

238,882

Options

purchased

(b)

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

—

—

(153,150)

(4,124)

8,584,538

(50,897)

8,376,367

Options

written

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

—

—

—

—

(7,061,587)

—

(7,061,587)

Swaps

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

—

239,991

—

—

(4,584,886)

1,177,832

(3,167,063)

$

—

$

239,991

$

(153,150)

$

234,758

$

(4,651,497)

$

1,126,935

$

(3,202,963)

(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.

2023

BlackRock

Semi-Annual

Report

to

Shareholders

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

18

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Consolidated

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

long

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

$

332,397,968

Average

notional

value

of

contracts

—

short

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

$

427,388,146

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

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

$

19,779,858

Average

amounts

sold

—

in

USD

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

$

9,009,045

Options

Average

value

of

option

contracts

purchased

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

$

6,172,956

Average

value

of

option

contracts

written

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

$

5,808,903

Average

notional

value

of

swaption

contracts

purchased

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

$

19,840,000

Average

notional

value

of

swaption

contracts

written

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

$

219,742,125

Credit

default

swaps

Average

notional

value

—

sell

protection

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

$

9,672,825

Interest

rate

swaps

Average

notional

value

—

pays

fixed

rate

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

$

38,752,129

Average

notional

value

—

receives

fixed

rate

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

$

478,618,650

Inflation

swaps

Average

notional

value

—

pays

fixed

rate

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

$

34,538,166

Average

notional

value

—

receives

fixed

rate

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

$

22,686,482

Total

return

swaps

Average

notional

value

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

$

—

(a)

(a)

Derivative

financial

instrument

not

held

at

any

quarter-end.

The

risk

exposure

table

serves

as

an

indicator

of

activity

during

the

period.

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

(1,745,071)

Futures

contracts

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

$

169,506

$

330,486

Forward

foreign

currency

exchange

contracts

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

47,914

401

Options

(a)(b)

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

11,393,538

15,457,201

Swaps

—

centrally

cleared

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

127,375

—

Total

derivative

assets

and

liabilities

in

the

Consolidated

Statement

of

Assets

and

Liabilities

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

$

11,738,333

$

15,788,088

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

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

(11,683,094)

(11,578,367)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

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

$

55,239

$

4,209,721

(a)

Includes

options

purchased

at

value

which

is

included

in

Investments

at

value

–

unaffiliated

in

the

Consolidated

Statement

of

Assets

and

Liabilities

and

reported

in

the

Consolidated

Schedule

of

Investments.

(b)

Includes

forward

settling

swaptions.

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

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

$

6,675

$

(268)

$

—

$

—

$

6,407

Bank

of

New

York

Mellon

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

10,815

—

—

—

10,815

BNP

Paribas

SA

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

16,718

(16,718)

—

—

—

Citibank

NA

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

176

(176)

—

—

—

JPMorgan

Chase

Bank

NA

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

3,515

(3,515)

—

—

—

Toronto

Dominion

Bank

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

10,191

—

—

—

10,191

UBS

AG

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

7,149

(7,149)

—

—

—

$

55,239

$

(27,826)

$

—

$

—

$

27,413

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

19

Fair

Value

Hierarchy

as

of Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Consolidated

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund's

financial

instruments

into

major

categories

is

disclosed

in

the Consolidated

Schedule

of

Investments

above.

Counterparty

Derivative

Liabilities

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Pledged

(d)

Cash

Collateral

Pledged

Net

Amount

of

Derivative

Liabilities

(b)(e)

Bank

of

America

NA

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

$

268

$

(268)

$

—

$

—

$

—

Barclays

Bank

plc

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

2,031,555

—

(1,816,568)

—

214,987

BNP

Paribas

SA

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

292,879

(16,718)

—

—

276,161

Citibank

NA

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

592,019

(176)

(576,116)

—

15,727

JPMorgan

Chase

Bank

NA

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

973,682

(3,515)

(564,745)

—

405,422

UBS

AG

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

319,318

(7,149)

—

—

312,169

$

4,209,721

$

(27,826)

$

(2,957,429)

$

—

$

1,224,466

(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

may

also

include

forward

foreign

currency

exchange

contracts

that

are

not

required

to

be

collateralized.

(c)

Net

amount

represents

the

net

amount

receivable

from

the

counterparty

in

the

event

of

default.

(d)

Excess

of

collateral

received/pledged,

if

any,

from

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.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

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

$

—

$

65,383,894

$

—

$

65,383,894

Common

Stocks

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

932,200

—

—

932,200

Corporate

Bonds

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

—

2,691,349

—

2,691,349

Foreign

Government

Obligations

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

—

15,794,898

—

15,794,898

Investment

Companies

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

2,369,625

—

—

2,369,625

Non-Agency

Mortgage-Backed

Securities

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

—

38,654,417

—

38,654,417

U.S.

Government

Sponsored

Agency

Securities

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

—

207,793,651

—

207,793,651

U.S.

Treasury

Obligations

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

—

2,461,528,343

—

2,461,528,343

Short-Term

Securities

Money

Market

Funds

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

2,604,864

—

—

2,604,864

Options

Purchased

Equity

contracts

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

27,913

—

—

27,913

Foreign

currency

exchange

contracts

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

—

7,149

—

7,149

Interest

rate

contracts

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

11,358,300

—

—

11,358,300

Other

contracts

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

—

176

—

176

Liabilities

Investments

TBA

Sale

Commitments

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

—

(57,560,315)

—

(57,560,315)

$

17,292,902

$

2,734,293,562

$

—

$

2,751,586,464

Derivative

Financial

Instruments

(a)

Assets

Credit

contracts

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

$

—

$

239,991

$

—

$

239,991

Foreign

currency

exchange

contracts

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

—

47,914

—

47,914

Interest

rate

contracts

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

1,430,948

208,778

—

1,639,726

Other

contracts

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

—

251,517

—

251,517

Liabilities

Foreign

currency

exchange

contracts

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

—

(401)

—

(401)

Interest

rate

contracts

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

(13,738,898)

(5,120,486)

—

(18,859,384)

Other

contracts

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

—

(365,309)

—

(365,309)

$

(12,307,950)

$

(4,737,996)

$

—

$

(17,045,946)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

Consolidated

Schedule

of

Investments

(unaudited)

(continued)

June

30,

2023

BlackRock

Inflation

Protected

Bond

Portfolio

20

See

notes

to

consolidated

financial

statements.

(a)

Derivative

financial

instruments

are

swaps,

futures

contracts,

forward

foreign

currency

exchange

contracts

and

options

written.

Swaps,

futures

contracts

and

forward

foreign

currency

exchange

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

The

Fund

may

hold

assets

and/or

liabilities

in

which

the

fair

value

approximates

the

carrying

amount

or

face

value,

including

accrued

interest,

for

financial

statement

purposes.

As

of

period

end,

reverse

repurchase

agreements

of

$173,277,024

are

categorized

as

Level

2

within

the

fair

value

hierarchy.

Consolidated

Statement

of

Assets

and

Liabilities

(unaudited)

June

30,

2023

21

Consolidated

Financial

Statements

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

ASSETS

Investments,

at

value

—

unaffiliated

(a)

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

$

2,804,172,290‌

Investments,

at

value

—

affiliated

(b)

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

4,974,489‌

Cash

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

6,136,525‌

Cash

pledged:

–‌

Collateral

—

exchange-traded

options

written

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

14,920,000‌

Futures

contracts

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

3,509,820‌

Centrally

cleared

swaps

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

3,422,000‌

Foreign

currency,

at

value

(c)

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

2,401,601‌

Receivables:

–‌

Investments

sold

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

22,733,012‌

TBA

sale

commitments

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

57,719,353‌

Capital

shares

sold

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

5,751,852‌

Dividends

—

unaffiliated

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

12,400‌

Dividends

—

affiliated

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

11,253‌

Interest

—

unaffiliated

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

7,501,478‌

From

the

Manager

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

182,679‌

Variation

margin

on

futures

contracts

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

169,506‌

Variation

margin

on

centrally

cleared

swaps

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

127,375‌

Unrealized

appreciation

on:

–‌

Forward

foreign

currency

exchange

contracts

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

47,914‌

Prepaid

expenses

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

133,497‌

Total

assets

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

2,933,927,044‌

LIABILITIES

Options

written,

at

value

(d)

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

15,457,201‌

TBA

sale

commitments,

at

value

(e)

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

57,560,315‌

Reverse

repurchase

agreements,

at

value

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

173,277,024‌

Payables:

–‌

Investments

purchased

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

219,151,408‌

Administration

fees

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

78,494‌

Capital

shares

redeemed

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

8,679,059‌

Income

dividend

distributions

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

1,920,572‌

Investment

advisory

fees

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

437,299‌

Trustees'

and

Officer's

fees

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

1,541‌

Professional

fees

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

30,452‌

Service

and

distribution

fees

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

124,332‌

Variation

margin

on

futures

contracts

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

330,486‌

Other

accrued

expenses

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

980,702‌

Unrealized

depreciation

on:

–‌

Forward

foreign

currency

exchange

contracts

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

401‌

Total

liabilities

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

478,029,286‌

Commitments

and

contingent

liabilities

$

–‌

NET

ASSETS

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

$

2,455,897,758‌

NET

ASSETS

CONSIST

OF:

Paid-in

capital

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

$

2,868,232,446‌

Accumulated

loss

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

(412,334,688‌)

NET

ASSETS

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

$

2,455,897,758‌

(a)

  Investments,

at

cost

—

unaffiliated

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

$

3,014,684,609‌

(b)

  Investments,

at

cost

—

affiliated

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

$

5,538,595‌

(c)

  Foreign

currency,

at

cost

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

$

2,440,771‌

(d)

  Premiums

received

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

$

6,047,544‌

(e)

  Proceeds

received

from

TBA

sale

commitments

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

$

57,719,353‌

Consolidated

Statement

of

Assets

and

Liabilities

(unaudited)

(continued)

June

30,

2023

2023

BlackRock

Semi-Annual

Report

to

Shareholders

22

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

NET

ASSET

VALUE

Institutional

Net

assets

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

$

1,397,860,226‌

Shares

outstanding

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

142,600,698‌

Net

asset

value

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

$

9.80‌

Shares

authorized

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

Unlimited

Par

value

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

$

0.001‌

Investor

A

Net

assets

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

$

403,864,398‌

Shares

outstanding

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

42,395,718‌

Net

asset

value

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

$

9.53‌

Shares

authorized

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

Unlimited

Par

value

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

$

0.001‌

Investor

C

Net

assets

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

$

34,956,629‌

Shares

outstanding

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

3,849,024‌

Net

asset

value

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

$

9.08‌

Shares

authorized

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

Unlimited

Par

value

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

$

0.001‌

Class

K

Net

assets

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

$

619,216,505‌

Shares

outstanding

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

64,145,551‌

Net

asset

value

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

$

9.65‌

Shares

authorized

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

Unlimited

Par

value

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

$

0.001‌

Consolidated

Statement

of

Operations

(unaudited)

Six

Months

Ended

June

30,

2023

23

Consolidated

Financial

Statements

(a)

Includes

net

inflationary

and

deflationary

adjustments.

See

Note

4

of

the

Notes

to

Consolidated

Financial

Statements.

BlackRock

Inflation

Protected

Bond

Portfolio

INVESTMENT

INCOME

Dividends

—

unaffiliated

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

$

29,785‌

Dividends

—

affiliated

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

266,943‌

Interest

—

unaffiliated

(a)

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

55,904,191‌

Total

investment

income

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

56,200,919‌

EXPENSES

Investment

advisory

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

3,154,219‌

Transfer

agent

—

class

specific

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

1,464,075‌

Service

and

distribution

—

class

specific

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

727,735‌

Administration

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

496,149‌

Administration

—

class

specific

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

258,719‌

Registration

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

172,496‌

Accounting

services

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

124,503‌

Professional

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

59,259‌

Custodian

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

40,259‌

Printing

and

postage

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

17,446‌

Trustees

and

Officer

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

16,832‌

Miscellaneous

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

50,323‌

Total

expenses

excluding

interest

expense

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

6,582,015‌

Interest

expense

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

6,573,675‌

Total

expenses

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

13,155,690‌

Less:

–‌

Administration

fees

waived

by

the

Manager

—

class

specific

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

(258,719‌)

Fees

waived

and/or

reimbursed

by

the

Manager

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

(383,553‌)

Transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific

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

(977,462‌)

Total

expenses

after

fees

waived

and/or

reimbursed

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

11,535,956‌

Net

investment

income

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

44,664,963‌

REALIZED

AND

UNREALIZED

GAIN

(LOSS)

$

17,130,800‌

Net

realized

gain

(loss)

from:

$

–‌

Investments

—

unaffiliated

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

(95,564,490‌)

Investments

—

affiliated

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

(117,016‌)

Borrowed

bonds

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

337,186‌

Forward

foreign

currency

exchange

contracts

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

86,844‌

Foreign

currency

transactions

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

(535,961‌)

Futures

contracts

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

20,119,803‌

Options

written

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

(644,111‌)

Swaps

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

3,858,584‌

A

(72,459,161‌)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments

—

unaffiliated

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

101,415,966‌

Investments

—

affiliated

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

159,441‌

Borrowed

bonds

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

(292,938‌)

Forward

foreign

currency

exchange

contracts

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

238,882‌

Foreign

currency

translations

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

(113,178‌)

Futures

contracts

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

(1,589,562‌)

Options

written

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

(7,061,587‌)

Swaps

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

(3,167,063‌)

A

89,589,961‌

Net

realized

and

unrealized

gain

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

17,130,800‌

NET

INCREASE

IN

NET

ASSETS

RESULTING

FROM

OPERATIONS

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

$

61,795,763‌

See

notes

to

consolidated

financial

statements.

Consolidated

Statements

of

Changes

in

Net

Assets

2023

BlackRock

Semi-Annual

Report

to

Shareholders

24

BlackRock

Inflation

Protected

Bond

Portfolio

Six

Months

Ended

06/30/23

(unaudited)

Year

Ended

12/31/22

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

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

$

44,664,963

‌

$

219,039,946

‌

Net

realized

loss

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

(72,459,161

)

(105,634,502

)

Net

change

in

unrealized

appreciation

(depreciation)

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

89,589,961

‌

(502,601,883

)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

61,795,763

‌

(389,196,439

)

DISTRIBUTIONS

TO

SHAREHOLDERS

(a)

  Institutional

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

(25,725,520

)

(136,670,931

)

  Investor

A

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

(7,233,827

)

(32,339,725

)

  Investor

C

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

(561,503

)

(3,141,052

)

  Class

K

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

(11,477,617

)

(50,831,694

)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

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

(44,998,467

)

(222,983,402

)

CAPITAL

SHARE

TRANSACTIONS

Net

decrease

in

net

assets

derived

from

capital

share

transactions

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

(245,571,663

)

(43,153,646

)

NET

ASSETS

Total

decrease

in

net

assets

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

(228,774,367

)

(655,333,487

)

Beginning

of

period

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

2,684,672,125

‌

3,340,005,612

‌

End

of

period

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

$

2,455,897,758

‌

$

2,684,672,125

‌

(a)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

See

notes

to

consolidated

financial

statements.

Consolidated

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

25

Consolidated

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Not

annualized.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Annualized.

(g)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived

and/or

reimbursed,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense would

have

been

0.69%,

0.56%

and

0.34%,

respectively.

(h)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived

and/or

reimbursed,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense would

have

been

0.52%,

0.35%

and

0.34%,

respectively.

(i)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Inflation

Protected

Bond

Portfolio

Institutional

Six

Months

Ended

06/30/23

(unaudited)

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Year

Ended

12/31/18

Net

asset

value,

beginning

of

period

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

$

9.76

‌

$

11.82

‌

$

11.91

‌

$

10.82

‌

$

10.23

‌

$

10.71

‌

Net

investment

income

(a)

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

0.17

‌

0.76

‌

0.59

‌

0.16

‌

0.22

‌

0.28

‌

Net

realized

and

unrealized

gain

(loss)

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

0.05

‌

(2.06

)

0.08

‌

1.11

‌

0.62

‌

(0.48

)

Net

increase

(decrease)

from

investment

operations

......

0.22

‌

(1.30

)

0.67

‌

1.27

‌

0.84

‌

(0.20

)

Distributions

(b)

–

–

–

–

–

–

From

net

investment

income

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

(0.18

)

(0.66

)

(0.58

)

(0.18

)

(0.25

)

(0.25

)

From

net

realized

gain

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

—

‌

(0.10

)

(0.18

)

—

‌

—

‌

—

‌

Return

of

capital

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

—

‌

—

‌

—

‌

—

‌

—

‌

(0.03

)

Total

distributions

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

(0.18

)

(0.76

)

(0.76

)

(0.18

)

(0.25

)

(0.28

)

Net

asset

value,

end

of

period

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

$

9.80

‌

$

9.76

‌

$

11.82

‌

$

11.91

‌

$

10.82

‌

$

10.23

‌

Total

Return

(c)

—

—

—

—

—

—

Based

on

net

asset

value

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

2.20

%

(d)

(11.40

)%

5.75

%

11.75

%

8.26

%

(1.88

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

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

1.00

%

(f)

0.75

%

(g)

0.56

%

(h)

0.61

%

0.80

%

0.63

%

Total

expenses

after

fees

waived

and/or

reimbursed

......

0.85

%

(f)

0.62

%

(g)

0.39

%

(h)

0.43

%

0.65

%

0.50

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

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

0.34

%

(f)

0.40

%

(g)

0.38

%

(h)

0.34

%

0.34

%

0.34

%

Net

investment

income

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

3.49

%

(f)

7.14

%

4.92

%

1.39

%

2.12

%

2.67

%

Supplemental

Data

Net

assets,

end

of

period

(000)

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

$

1,397,860

‌

$

1,524,659

‌

$

2,093,224

‌

$

1,260,218

‌

$

1,343,773

‌

$

1,434,877

‌

Portfolio

turnover

rate

(

i

)

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

84

%

293

%

246

%

330

%

252

%

176

%

Six

Months

Ended

06/30/23

(unaudited)

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Year

Ended

12/31/18

Portfolio

turnover

rate

(excluding

MDRs)

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

65%

235%

246%

319%

220%

172%

See

notes

to

consolidated

financial

statements.

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

26

(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)

Not

annualized.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Annualized.

(g)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived

and/or

reimbursed,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense would

have

been

0.99%,

0.80%

and

0.59%,

respectively.

(h)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived

and/or

reimbursed,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense would

have

been

0.77%,

0.60%

and

0.59%,

respectively.

(i)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Inflation

Protected

Bond

Portfolio

Investor

A

Six

Months

Ended

06/30/23

(unaudited)

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Year

Ended

12/31/18

Net

asset

value,

beginning

of

period

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

$

9.48

‌

$

11.50

‌

$

11.60

‌

$

10.55

‌

$

9.99

‌

$

10.46

‌

Net

investment

income

(a)

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

0.16

‌

0.70

‌

0.55

‌

0.13

‌

0.20

‌

0.25

‌

Net

realized

and

unrealized

gain

(loss)

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

0.05

‌

(2.00

)

0.07

‌

1.08

‌

0.59

‌

(0.46

)

Net

increase

(decrease)

from

investment

operations

......

0.21

‌

(1.30

)

0.62

‌

1.21

‌

0.79

‌

(0.21

)

Distributions

(b)

–

–

–

–

–

–

From

net

investment

income

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

(0.16

)

(0.62

)

(0.54

)

(0.16

)

(0.23

)

(0.23

)

From

net

realized

gain

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

—

‌

(0.10

)

(0.18

)

—

‌

—

‌

—

‌

Return

of

capital

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

—

‌

—

‌

—

‌

—

‌

—

‌

(0.03

)

Total

distributions

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

(0.16

)

(0.72

)

(0.72

)

(0.16

)

(0.23

)

(0.26

)

Net

asset

value,

end

of

period

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

$

9.53

‌

$

9.48

‌

$

11.50

‌

$

11.60

‌

$

10.55

‌

$

9.99

‌

Total

Return

(c)

—

—

—

—

—

—

Based

on

net

asset

value

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

2.25

%

(d)

(11.71

)%

5.45

%

11.53

%

7.94

%

(2.08

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

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

1.26

%

(f)

1.05

%

(g)

0.80

%

(h)

0.93

%

1.27

%

1.13

%

Total

expenses

after

fees

waived

and/or

reimbursed

......

1.10

%

(f)

0.86

%

(g)

0.63

%

(h)

0.68

%

0.90

%

0.75

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

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

0.59

%

(f)

0.65

%

(g)

0.62

%

(h)

0.59

%

0.59

%

0.59

%

Net

investment

income

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

3.26

%

(f)

6.80

%

4.73

%

1.18

%

1.89

%

2.42

%

Supplemental

Data

Net

assets,

end

of

period

(000)

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

$

403,864

‌

$

441,529

‌

$

478,357

‌

$

457,665

‌

$

359,449

‌

$

248,530

‌

Portfolio

turnover

rate

(

i

)

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

84

%

293

%

246

%

330

%

252

%

176

%

Six

Months

Ended

06/30/23

(unaudited)

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Year

Ended

12/31/18

Portfolio

turnover

rate

(excluding

MDRs)

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

65%

235%

246%

319%

220%

172%

See

notes

to

consolidated

financial

statements.

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

27

Consolidated

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(d)

Not

annualized.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Annualized.

(g)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived

and/or

reimbursed,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense would

have

been

1.64%,

1.55%

and

1.34%,

respectively.

(h)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived

and/or

reimbursed,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense would

have

been

1.47%,

1.35%

and

1.34%,

respectively.

(i)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Inflation

Protected

Bond

Portfolio

Investor

C

Six

Months

Ended

06/30/23

(unaudited)

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Year

Ended

12/31/18

Net

asset

value,

beginning

of

period

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

$

9.06

‌

$

11.01

‌

$

11.12

‌

$

10.17

‌

$

9.66

‌

$

10.13

‌

Net

investment

income

(a)

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

0.11

‌

0.61

‌

0.44

‌

0.01

‌

0.10

‌

0.17

‌

Net

realized

and

unrealized

gain

(loss)

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

0.05

‌

(1.93

)

0.08

‌

1.07

‌

0.59

‌

(0.44

)

Net

increase

(decrease)

from

investment

operations

......

0.16

‌

(1.32

)

0.52

‌

1.08

‌

0.69

‌

(0.27

)

Distributions

(b)

–

–

–

–

–

–

From

net

investment

income

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

(0.14

)

(0.53

)

(0.45

)

(0.13

)

(0.18

)

(0.18

)

From

net

realized

gain

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

—

‌

(0.10

)

(0.18

)

—

‌

—

‌

—

‌

Return

of

capital

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

—

‌

—

‌

—

‌

—

‌

—

‌

(0.02

)

Total

distributions

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

(0.14

)

(0.63

)

(0.63

)

(0.13

)

(0.18

)

(0.20

)

Net

asset

value,

end

of

period

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

$

9.08

‌

$

9.06

‌

$

11.01

‌

$

11.12

‌

$

10.17

‌

$

9.66

‌

Total

Return

(c)

—

—

—

—

—

—

Based

on

net

asset

value

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

1.72

%

(d)

(12.35

)%

4.73

%

10.64

%

7.17

%

(2.75

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

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

1.93

%

(f)

1.70

%

(g)

1.51

%

(h)

1.57

%

1.83

%

1.63

%

Total

expenses

after

fees

waived

and/or

reimbursed

......

1.85

%

(f)

1.61

%

(g)

1.39

%

(h)

1.43

%

1.65

%

1.50

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

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

1.34

%

(f)

1.40

%

(g)

1.38

%

(h)

1.34

%

1.34

%

1.34

%

Net

investment

income

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

2.48

%

(f)

6.15

%

3.95

%

0.06

%

1.04

%

1.68

%

Supplemental

Data

Net

assets,

end

of

period

(000)

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

$

34,957

‌

$

40,543

‌

$

50,488

‌

$

29,358

‌

$

62,226

‌

$

99,108

‌

Portfolio

turnover

rate

(

i

)

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

84

%

293

%

246

%

330

%

252

%

176

%

Six

Months

Ended

06/30/23

(unaudited)

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Year

Ended

12/31/18

Portfolio

turnover

rate

(excluding

MDRs)

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

65%

235%

246%

319%

220%

172%

See

notes

to

consolidated

financial

statements.

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

28

(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)

Not

annualized.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Annualized.

(g)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived

and/or

reimbursed,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense would

have

been

0.55%,

0.50%

and

0.29%,

respectively.

(h)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived

and/or

reimbursed,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense would

have

been

0.34%,

0.29%

and

0.29%,

respectively.

(i)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Inflation

Protected

Bond

Portfolio

Class

K

Six

Months

Ended

06/30/23

(unaudited)

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Year

Ended

12/31/18

Net

asset

value,

beginning

of

period

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

$

9.61

‌

$

11.64

‌

$

11.73

‌

$

10.65

‌

$

10.07

‌

$

10.54

‌

Net

investment

income

(a)

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

0.17

‌

0.73

‌

0.59

‌

0.17

‌

0.22

‌

0.28

‌

Net

realized

and

unrealized

gain

(loss)

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

0.04

‌

(2.01

)

0.08

‌

1.09

‌

0.61

‌

(0.47

)

Net

increase

(decrease)

from

investment

operations

......

0.21

‌

(1.28

)

0.67

‌

1.26

‌

0.83

‌

(0.19

)

Distributions

(b)

–

–

–

–

–

–

From

net

investment

income

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

(0.17

)

(0.65

)

(0.58

)

(0.18

)

(0.25

)

(0.25

)

From

net

realized

gain

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

—

‌

(0.10

)

(0.18

)

—

‌

—

‌

—

‌

Return

of

capital

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

—

‌

—

‌

—

‌

—

‌

—

‌

(0.03

)

Total

distributions

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

(0.17

)

(0.75

)

(0.76

)

(0.18

)

(0.25

)

(0.28

)

Net

asset

value,

end

of

period

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

$

9.65

‌

$

9.61

‌

$

11.64

‌

$

11.73

‌

$

10.65

‌

$

10.07

‌

Total

Return

(c)

—

—

—

—

—

—

Based

on

net

asset

value

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

2.22

%

(d)

(11.38

)%

5.80

%

11.85

%

8.28

%

(1.81

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

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

0.85

%

(f)

0.61

%

(g)

0.38

%

(h)

0.43

%

0.65

%

0.53

%

Total

expenses

after

fees

waived

and/or

reimbursed

......

0.80

%

(f)

0.56

%

(g)

0.33

%

(h)

0.38

%

0.60

%

0.45

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

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

0.29

%

(f)

0.35

%

(g)

0.33

%

(h)

0.29

%

0.29

%

0.29

%

Net

investment

income

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

3.54

%

(f)

7.06

%

5.03

%

1.48

%

2.14

%

2.70

%

Supplemental

Data

Net

assets,

end

of

period

(000)

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

$

619,217

‌

$

677,942

‌

$

717,937

‌

$

460,370

‌

$

340,162

‌

$

315,003

‌

Portfolio

turnover

rate

(

i

)

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

84

%

293

%

246

%

330

%

252

%

176

%

Six

Months

Ended

06/30/23

(unaudited)

Year

Ended

12/31/22

Year

Ended

12/31/21

Year

Ended

12/31/20

Year

Ended

12/31/19

Year

Ended

12/31/18

Portfolio

turnover

rate

(excluding

MDRs)

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

65%

235%

246%

319%

220%

172%

See

notes

to

consolidated

financial

statements.

Notes

to

Consolidated

Financial

Statements

(unaudited)

29

Notes

to

Consolidated

Financial

Statements

1.

ORGANIZATION 

BlackRock

Funds

V (the

“Trust”)

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

as

an

open-end

management

investment

company.

The Trust

is

organized

as

a Massachusetts

business

trust.

BlackRock

Inflation

Protected

Bond

Portfolio

(the

“Fund”)

is

a

series

of

the

Trust.

The

Fund

is

classified

as

diversified.

The

Fund

offers

multiple

classes

of

shares.

All

classes

of

shares

have

identical

voting,

dividend,

liquidation

and

other

rights

and

are

subject

to

the

same

terms

and

conditions,

except

that

certain

classes

bear

expenses

related

to

the

shareholder

servicing

and

distribution

of

such

shares.

Institutional

and

Class K

Shares

are

sold

only

to

certain

eligible

investors.

Investor

A

and

Investor

C

Shares

bear

certain

expenses

related

to

shareholder

servicing

of

such

shares,

and

Investor

C

Shares

also

bear

certain

expenses

related

to

the

distribution

of

such

shares.

Investor

A

and

Investor

C

Shares

are

generally

available

through

financial

intermediaries.

Each

class

has

exclusive

voting

rights

with

respect

to

matters

relating

to

its

shareholder

servicing

and

distribution

expenditures

(except

that

Investor C

shareholders

may

vote

on

material

changes

to

the

Investor

A

Shares

distribution

and

service

plan).

(a)

Investor

A

Shares

may

be

subject

to

a

CDSC

for

certain

redemptions

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

(b)

A

CDSC

of

1.00%

is

assessed

on

certain

redemptions

of

Investor

C

Shares

made

within

one

year

after

purchase.

The

Fund,

together

with

certain

other

registered

investment

companies

advised

by

BlackRock

Advisors,

LLC

(the

“Manager”) or

its

affiliates,

is

included

in

a

complex

of

funds

referred

to

as

the BlackRock

Fixed-Income

Complex.

Basis

of

Consolidation:

The

accompanying

consolidated

financial

statements

of

the

Fund

 include

the

account

of

Cayman

Inflation

Protected

Bond

Portfolio,

Ltd.

(the

“Cayman

Subsidiary”),

which

is

a

wholly-owned

subsidiary

of

the

Fund

 and

primarily

invests

in

commodity-related

instruments

and

other

derivatives

.

The

Cayman

Subsidiary

enables 

the

Fund

 to

hold

these

commodity-related

instruments

and

satisfy

regulated

investment

company

tax

requirements.

The

Fund

 may

invest

up

to

25%

of

its

total

assets

in

the

Cayman

Subsidiary.

The

net

assets

of

the

Cayman

Subsidiary

as

of

period

end

were

$6,015,657

,

which

is

0.2%

 of

the

Fund's

 consolidated

net

assets.

Intercompany

accounts

and

transactions,

if

any,

have

been

eliminated. The

Cayman

Subsidiary

is

subject

to

the

same

investment

policies

and

restrictions

that

apply

to 

the

Fund

,

except

that

the

Cayman

Subsidiary

may

invest

without

limitation

in

commodity-related

instruments. 

2.

SIGNIFICANT

ACCOUNTING

POLICIES

The

consolidated

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

consolidated

financial

statements,

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

consolidated

financial

statements

and

the

reported

amounts

of

increases

and

decreases

in

net

assets

from

operations

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

The

Fund

is

considered

an

investment

company

under

U.S.

GAAP

and

follows

the

accounting

and

reporting

guidance

applicable

to

investment

companies.

Below

is

a

summary

of

significant

accounting

policies: 

Investment

Transactions

and

Income

Recognition:

For

financial

reporting

purposes,

investment

transactions

are

recorded

on

the

dates

the

transactions

are

executed.

Realized

gains

and

losses

on

investment

transactions

are

determined

using

the

specific

identification

method.

Dividend

income

and

capital

gain

distributions,

if

any,

are

recorded

on

the

ex-dividend

dates.

Non-cash

dividends,

if

any,

are

recorded

on

the

ex-dividend

dates

at

fair

value.

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,

and

payment-in-kind

interest

are

recognized

daily

on

an

accrual

basis.

Income,

expenses

and

realized

and

unrealized

gains

and

losses

are

allocated

daily

to

each

class

based

on

its

relative

net

assets. 

Foreign

Currency

Translation:

The

Fund’s

books

and

records

are

maintained

in

U.S.

dollars.

Securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

using

exchange

rates

determined

as

of

the

close

of

trading

on

the

New

York

Stock

Exchange

(“NYSE”).

Purchases

and

sales

of

investments

are

recorded

at

the

rates

of

exchange

prevailing

on

the

respective

dates

of

such

transactions.

Generally,

when

the

U.S.

dollar

rises

in

value

against

a

foreign

currency,

the

investments

denominated

in

that

currency

will

lose

value;

the

opposite

effect

occurs

if

the

U.S.

dollar

falls

in

relative

value. 

The

Fund

does

not

isolate

the

effect

of

fluctuations

in

foreign

exchange

rates

from

the

effect

of

fluctuations

in

the

market

prices

of

investments

for

financial

reporting

purposes.

Accordingly,

the

effects

of

changes

in

exchange

rates

on

investments

are

not

segregated

in

the

Consolidated

Statement

of

Operations

from

the

effects

of

changes

in

market

prices

of

those

investments,

but

are

included

as

a

component

of

net

realized

and

unrealized

gain

(loss)

from

investments.

The

Fund

reports

realized

currency

gains

(losses)

on

foreign

currency

related

transactions

as

components

of

net

realized

gain

(loss)

for

financial

reporting

purposes,

whereas

such

components

are

generally

treated

as

ordinary

income

for

U.S.

federal

income

tax

purposes.

Collateralization:

If

required

by

an

exchange

or

counterparty

agreement,

the

Fund

may

be

required

to

deliver/deposit

cash

and/or

securities

to/with

an

exchange,

or

broker-

dealer

or

custodian

as

collateral

for

certain

investments.  

Distributions: 

Distributions

from

net

investment

income

are

declared daily

and

paid

monthly.

Distributions

of

capital

gains

are

recorded

on

the

ex-dividend

dates

and

made

at

least

annually.

The

character

and

timing

of

distributions

are

determined

in

accordance

with

U.S.

federal

income

tax

regulations,

which

may

differ

from

U.S.

GAAP.

Share

Class

Initial

Sales

Charge

Contingent

Deferred

Sales

Charge

(“CDSC”)

Conversion

Privilege

Institutional

and

Class

K

Shares

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

No

No

None

Investor

A

Shares

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

Yes

No

(a)

None

Investor

C

Shares

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

No

Yes

(b)

To

Investor

A

Shares

after

approximately

8

years

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

30

Net

income

and

realized

gains

from

investments

held

by

the

Cayman

Subsidiary

are

treated

as

ordinary

income

for

tax

purposes. If

a

net

loss

is

realized

by

the Cayman

Subsidiary

in

any

taxable

year,

the

loss

will

generally

not

be

available

to

offset

the

Fund’s

ordinary

income

and/or

capital

gains

for

that

year.  

 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

Fund,

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

the

Fund,

as

applicable.

Deferred

compensation

liabilities,

if

any, are

included

in

the Trustees

and

Officer’s

fees

payable

in

the

Consolidated

Statement

of

Assets

and

Liabilities

and

will

remain

as

a

liability

of

the

Fund

until

such

amounts

are

distributed

in

accordance

with

the

Plan.

Net

appreciation

(depreciation)

in

the

value

of

participants’

deferral

accounts

is

allocated

among

the

participating

funds

in

the

BlackRock

Fixed-Income

Complex

and

reflected

as

Trustee

and

Officer

expense

on

the

Consolidated

Statement

of

Operations.

The

Trustee

and

Officer

expense

may

be

negative

as

a

result

of

a

decrease

in

value

of

the

deferred

accounts.

Indemnifications:

In

the

normal

course

of

business,

the

Fund

enters

into

contracts

that

contain

a

variety

of

representations

that

provide

general

indemnification.

The

Fund’s

maximum

exposure

under

these

arrangements

is

unknown

because

it

involves

future

potential

claims

against

the

Fund,

which

cannot

be

predicted

with

any

certainty.

Other:

Expenses

directly

related

to the

Fund

or

its

classes

are

charged

to

the

Fund

or

the

applicable

class.

Expenses

directly

related

to

the

Fund

and

other

shared

expenses

prorated

to

the

Fund

are

allocated

daily

to

each

class

based

on

its

relative

net

assets

or

other

appropriate

methods.

Other

operating

expenses

shared

by

several

funds,

including

other

funds

managed

by

the

Manager,

are

prorated

among

those

funds

on

the

basis

of

relative

net

assets

or

other

appropriate

methods.  

3.

INVESTMENT

VALUATION

AND

FAIR

VALUE

MEASUREMENTS 

Investment

Valuation

Policies:

 The

Fund’s

investments

are

valued

at

fair

value

(also

referred

to

as

“market

value”

within

the

c

onsolidated

financial

statements)

each

day

that

the

Fund

is

open

for

business

and,

for

financial

reporting

purposes,

as

of

the

report

date.

U.S.

GAAP

defines

fair

value

as

the

price

a

fund

would

receive

to

sell

an

asset

or

pay

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date.

The

Board

has

approved

the

designation

of

the

Fund’s

Manager

as

the

valuation

designee

for

the

Fund.

The

Fund

determines

the

fair

values

of

its

financial

instruments

using

various

independent

dealers

or

pricing

services

under

the

Manager’s

policies.

If

a

security’s

market

price

is

not

readily

available

or

does

not

otherwise

accurately

represent

the

fair

value

of

the

security,

the

security

will

be

valued

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value.

The

Manager

has

formed

a

committee

(the

“Valuation

Committee”)

to

develop

pricing

policies

and

procedures

and

to

oversee

the

pricing

function

for

all

financial

instruments,

with

assistance

from

other

BlackRock

pricing

committees.

Fair

Value

Inputs

and

Methodologies:

The

following

methods

and

inputs

are

used

to

establish

the

fair

value

of

the

Fund’s

assets

and

liabilities: 

Equity

investments

traded

on

a

recognized

securities

exchange

are

valued

at

that

day’s official

closing

price,

as

applicable,

on

the

exchange

where

the

stock

is

primarily

traded.

Equity

investments

traded

on

a

recognized

exchange

for

which

there

were

no

sales

on

that

day

may

be

valued

at

the

last

available

bid

(long

positions)

or

ask

(short

positions)

price.  

Fixed-income investments

for

which

market

quotations

are

readily

available

are

generally

valued

using

the

last

available

bid

price

or

current

market

quotations

provided

by

independent

dealers

or

third-party

pricing

services. Pricing

services

generally

value

fixed-income

securities

assuming

orderly

transactions

of

an

institutional

round

lot

size,

but

a

fund

may

hold

or

transact

in

such

securities

in

smaller,

odd

lot

sizes.

Odd

lots

may

trade

at

lower

prices

than

institutional

round

lots.

The

pricing

services

may

use

matrix

pricing

or

valuation

models

that

utilize

certain

inputs

and

assumptions

to

derive

values,

including

transaction

data

(e.g.,

recent

representative

bids

and

offers),

market

data, credit

quality

information,

perceived

market

movements,

news,

and

other

relevant

information.

Certain

fixed-income

securities,

including

asset-

backed

and

mortgage

related

securities

may

be

valued

based

on

valuation

models

that

consider

the

estimated

cash

flows

of

each

tranche

of

the

entity,

establish

a

benchmark

yield

and

develop

an

estimated

tranche

specific

spread

to

the

benchmark

yield

based

on

the

unique

attributes

of

the

tranche.

The

amortized

cost

method

of

valuation

may

be

used

with

respect

to

debt

obligations

with

sixty

days

or

less

remaining

to

maturity

unless

the

Manager

determines

such

method

does

not

represent

fair

value.

Investments

in

open-end

U.S.

mutual

funds

(including

money

market

funds) are

valued

at

that

day’s

published net

asset

value

(“NAV”).

Futures

contracts

are valued

based

on

that

day’s

last

reported

settlement

or

trade price

on

the

exchange

where

the

contract

is

traded.

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.

Exchange-traded

options

are

valued

at

the

mean

between

the

last bid

and

ask

prices

at

the

close

of

the

options

market in

which

the

options

trade.

An

exchange-

traded

option

for

which there

is

no

mean

price

is

valued

at

the

last

bid

(long

positions)

or

ask

(short

positions)

price.

If

no

bid

or

ask

price

is

available,

the

prior

day’s

price will

be

used,

unless

it

is

determined

that

the

prior

day’s

price

no

longer

reflects

the

fair

value

of

the

option.

Over-the-counter

(“OTC”)

options

and

options

on

swaps

(“swaptions”)

are

valued

by

an

independent

pricing

service

using

a

mathematical

model,

which

incorporates

a

number

of

market

data

factors,

such

as

the

trades

and

prices

of

the

underlying

instruments.

Swap

agreements

are

valued

utilizing

quotes

received

daily

by

independent pricing

services

or

through

brokers,

which

are

derived

using

daily

swap

curves

and

models

that

incorporate

a

number

of

market

data

factors,

such

as

discounted

cash

flows,

trades

and

values

of

the

underlying

reference

instruments. 

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

31

Notes

to

Consolidated

Financial

Statements

Generally,

trading

in

foreign

instruments

is

substantially

completed

each

day

at

various

times

prior

to

the

close

of

trading

on

the

NYSE.

Each

business

day,

the

Fund

uses

current

market

factors

supplied

by

independent

pricing

services

to

value

certain

foreign

instruments

(“Systematic

Fair

Value

Price”).

The

Systematic

Fair

Value

Price

is

designed

to

value

such

foreign

securities

at

fair

value

as

of

the

close

of

trading

on

the

NYSE,

which

follows

the

close

of

the

local

markets.

If

events

(e.g.,

market

volatility,

company

announcement or

a

natural

disaster)

occur

that

are

expected

to

materially

affect

the

value

of

such

investment,

or

in

the

event

that application

of

these

methods

of

valuation

results

in

a

price

for

an

investment

that

is

deemed

not

to

be

representative

of

the

market

value

of

such

investment,

or

if

a

price

is

not

available,

the

investment

will

be

valued

by

the

Valuation

Committee

in

accordance

with the

Manager's policies

and

procedures

as

reflecting

fair

value

(“Fair

Valued

Investments”).

The

fair

valuation

approaches

that

may

be

used

by

the

Valuation

Committee include

market

approach,

income

approach

and

cost

approach.

Valuation

techniques

such

as

discounted

cash

flow,

use

of

market

comparables

and

matrix

pricing

are

types

of

valuation

approaches

and

are

typically

used

in

determining

fair

value.

When

determining

the

price

for

Fair

Valued

Investments,

the

Valuation

Committee

seeks

to

determine

the

price

that

the

Fund

might

reasonably

expect

to

receive

or

pay

from

the

current

sale

or

purchase

of

that

asset

or

liability

in

an

arm’s-length

transaction.

Fair

value

determinations

shall

be

based

upon

all

available

factors

that

the

Valuation

Committee

deems

relevant

and

consistent

with

the

principles

of

fair

value

measurement.

Fair

Value

Hierarchy:

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

These

inputs

to

valuation

techniques

are

categorized

into

a

fair

value

hierarchy

consisting

of

three

broad

levels

for

financial reporting purposes

as

follows: 

Level

1

—

Unadjusted

price

quotations

in

active

markets/exchanges

for

identical

assets

or

liabilities

that

the

Fund

has

the

ability

to

access;

Level

2

—

Other

observable

inputs

(including,

but

not

limited

to,

quoted

prices

for

similar

assets

or

liabilities

in

markets

that

are

active,

quoted

prices

for

identical

or

similar

assets

or

liabilities

in

markets

that

are

not

active,

inputs

other

than

quoted

prices

that

are

observable

for

the

assets

or

liabilities

(such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks

and

default

rates)

or

other

market–corroborated

inputs);

and 

Level

3 —

Unobservable

inputs

based

on

the

best

information

available

in

the

circumstances,

to

the

extent

observable

inputs

are

not

available

(including

the

Valuation

Committee’s

assumptions

used

in

determining

the

fair

value

of

financial

instruments).

The

hierarchy

gives

the

highest

priority

to

unadjusted

quoted

prices

in

active

markets

for

identical

assets

or

liabilities

(Level

1

measurements)

and

the

lowest

priority

to

unobservable

inputs

(Level

3

measurements).

Accordingly,

the

degree

of

judgment

exercised

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

The

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

fair

value

hierarchy

classification

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety. Investments

classified

within

Level

3

have

significant

unobservable

inputs

used

by

the

Valuation

Committee

in

determining

the

price

for

Fair

Valued

Investments.

Level

3

investments

include

equity

or

debt

issued

by

privately

held

companies

or

funds

that

may

not

have

a

secondary

market

and/or

may

have

a

limited

number

of

investors.

The

categorization

of

a

value

determined

for

financial

instruments

is

based

on

the

pricing

transparency

of

the financial

instruments

and

is

not

necessarily

an

indication

of

the

risks

associated

with

investing

in

those

securities.

4.

SECURITIES

AND

OTHER

INVESTMENTS 

Asset-Backed

and

Mortgage-Backed

Securities:

Asset-backed

securities

are

generally

issued

as

pass-through

certificates

or

as

debt

instruments.

Asset-backed

securities

issued

as

pass-through

certificates

represent

undivided

fractional

ownership

interests

in

an

underlying

pool

of

assets.

Asset-backed

securities

issued

as

debt

instruments,

which

are

also

known

as

collateralized

obligations,

are

typically

issued

as

the

debt

of

a

special

purpose

entity

organized

solely

for

the

purpose

of

owning

such

assets

and

issuing

such

debt.

Asset-backed

securities

are

often

backed

by

a

pool

of

assets

representing

the

obligations

of

a

number

of

different

parties.

The

yield

characteristics

of

certain

asset-backed

securities

may

differ

from

traditional

debt

securities.

One

such

major

difference

is

that

all

or

a

principal

part

of

the

obligations

may

be

prepaid

at

any

time

because

the

underlying

assets

(i.e.,

loans)

may

be

prepaid

at

any

time.

As

a

result,

a

decrease

in

interest

rates

in

the

market

may

result

in

increases

in

the

level

of

prepayments

as

borrowers,

particularly

mortgagors,

refinance

and

repay

their

loans.

An

increased

prepayment

rate

with

respect

to

an

asset-backed

security

will

have

the

effect

of

shortening

the

maturity

of

the

security.

In

addition,

a

fund

may

subsequently

have

to

reinvest

the

proceeds

at

lower

interest

rates.

If

a

fund

has

purchased

such

an

asset-backed

security

at

a

premium,

a

faster

than

anticipated

prepayment

rate

could

result

in

a

loss

of

principal

to

the

extent

of

the

premium

paid. 

For

mortgage

pass-through

securities

(the

“Mortgage

Assets”)

there

are

a

number

of

important

differences

among

the

agencies

and

instrumentalities

of

the

U.S.

Government

that

issue

mortgage-related

securities

and

among

the

securities

that

they

issue.

For

example,

mortgage-related

securities

guaranteed

by

Ginnie

Mae

are

guaranteed

as

to

the

timely

payment

of

principal

and

interest

by

Ginnie

Mae

and

such

guarantee

is

backed

by

the

full

faith

and

credit

of

the

United

States.

However,

mortgage-related

securities

issued

by

Freddie

Mac

and

Fannie

Mae,

including

Freddie

Mac

and

Fannie

Mae

guaranteed

mortgage

pass-through

certificates,

which

are

solely

the

obligations

of

Freddie

Mac

and

Fannie

Mae,

are

not

backed

by

or

entitled

to

the

full

faith

and

credit

of

the

United

States,

but

are

supported

by

the

right

of

the

issuer

to

borrow

from

the

U.S.

Treasury. 

Non-agency

mortgage-backed

securities

are

securities

issued

by

non-governmental

issuers

and

have

no

direct

or

indirect

government

guarantees

of

payment

and

are

subject

to

various

risks.

Non-agency

mortgage

loans

are

obligations

of

the

borrowers

thereunder

only

and

are

not

typically

insured

or

guaranteed

by

any

other

person

or

entity.

The

ability

of

a

borrower

to

repay

a

loan

is

dependent

upon

the

income

or

assets

of

the

borrower.

A

number

of

factors,

including

a

general

economic

downturn,

acts

of

God,

terrorism,

social

unrest

and

civil

disturbances,

may

impair

a

borrower’s

ability

to

repay

its

loans.

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

is

included

as

interest

income

in

the

Consolidated

Statement

of

Operations,

even

though

investors

do

not

receive

their

principal

until

maturity.

Repayment

of

the

original

bond

principal

upon

maturity

(as

adjusted

for

inflation)

is

guaranteed

in

the

case

of

U.S.

Treasury

inflation-indexed

bonds.

For

bonds

that

do

not

provide

a

similar

guarantee,

the

adjusted

principal

value

of

the

bond

repaid

at

maturity

may

be

less

than

the

original

principal.

With

regard

to

municipal

inflation-indexed

bonds

and

certain

corporate

inflation-indexed

bonds,

the

inflation

adjustment

is

typically

reflected

in

the

semi-annual

coupon

payment.

As

a

result,

the

principal

value

of

municipal

inflation-indexed

bonds

and

such

corporate

inflation-indexed

bonds

does

not

adjust

according

to

the

rate

of

inflation.

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

32

Multiple

Class

Pass-Through

Securities:

Multiple

class

pass-through

securities,

including

collateralized

mortgage

obligations

(“CMOs”)

and

commercial

mortgage-backed

securities,

may

be

issued

by

Ginnie

Mae,

U.S.

Government

agencies

or

instrumentalities

or

by

trusts

formed

by

private

originators

of,

or

investors

in,

mortgage

loans.

In

general,

CMOs

are

debt

obligations

of

a

legal

entity

that

are

collateralized

by

a

pool

of

residential

or

commercial

mortgage

loans

or

Mortgage

Assets.

The

payments

on

these

are

used

to

make

payments

on

the

CMOs

or

multiple

pass-through

securities.

Multiple

class

pass-through

securities

represent

direct

ownership

interests

in

the

Mortgage

Assets.

Classes

of

CMOs

include

interest

only

(“IOs”),

principal

only

(“POs”),

planned

amortization

classes

and

targeted

amortization

classes.

IOs

and

POs

are

stripped

mortgage-backed

securities

representing

interests

in

a

pool

of

mortgages,

the

cash

flow

from

which

has

been

separated

into

interest

and

principal

components.

IOs

receive

the

interest

portion

of

the

cash

flow

while

POs

receive

the

principal

portion.

IOs

and

POs

can

be

extremely

volatile

in

response

to

changes

in

interest

rates.

As

interest

rates

rise

and

fall,

the

value

of

IOs

tends

to

move

in

the

same

direction

as

interest

rates.

POs

perform

best

when

prepayments

on

the

underlying

mortgages

rise

since

this

increases

the

rate

at

which

the

principal

is

returned

and

the

yield

to

maturity

on

the

PO.

When

payments

on

mortgages

underlying

a

PO

are

slower

than

anticipated,

the

life

of

the

PO

is

lengthened

and

the

yield

to

maturity

is

reduced.

If

the

underlying

Mortgage

Assets

experience

greater

than

anticipated

prepayments

of

principal,

a

fund’s

initial

investment

in

the

IOs

may

not

fully

recoup. 

TBA

Commitments:

TBA

commitments

are

forward

agreements

for

the

purchase

or

sale

of

securities,

including

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,

if

there

are

expenses

or

delays

in

connection

with

the

TBA

transactions,

or

if

the

counterparty

fails

to

complete

the

transaction.

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

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

the

collateral

currently

pledged

by

a

fund

and

the

counterparty. Cash

collateral

that

has

been

pledged

to

cover

the

obligations

of

a

fund

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Consolidated

Statement

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

for

TBA

commitments

or

cash

received

as

collateral

for

TBA

commitments,

respectively.

Non-cash

collateral

pledged

by

a

fund,

if

any,

is

noted

in

the

Consolidated

Schedule

of

Investments. Typically,

a

fund

is

permitted

to

sell,

re-pledge

or

use

the

collateral

it

receives;

however,

the

counterparty

is

not

permitted

to

do

so.

To

the

extent

amounts

due

to

a

fund

are

not

fully

collateralized,

contractually

or

otherwise,

a

fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Mortgage

Dollar

Roll

Transactions

:

The

Fund

may

sell

TBA

mortgage-backed

securities

and

simultaneously

contract

to

repurchase

substantially

similar

(i.e.,

same

type,

coupon

and

maturity)

securities

on

a

specific

future

date

at

an

agreed

upon

price.

During

the

period

between

the

sale

and

repurchase,

a

fund

is

not

entitled

to

receive

interest

and

principal

payments

on

the

securities

sold.

Mortgage

dollar

roll

transactions

are

treated

as

purchases

and

sales

and

a

fund realizes

gains

and

losses

on

these

transactions.

Mortgage

dollar

rolls

involve

the

risk

that

the

market

value

of

the

securities

that

a

fund

is

required

to

purchase

may

decline

below

the

agreed

upon

repurchase

price

of

those

securities.

Borrowed

Bond

Agreements:

Repurchase

agreements

may

be

referred

to

as

borrowed

bond

agreements

when

entered

into

in

connection

with

short

sales

of

bonds.

In

a

borrowed

bond

agreement,

a

fund

borrows

a

bond

from

a

counterparty

in

exchange

for

cash

collateral.

The

agreement

contains

a

commitment

that

the

security

and

the

cash

will

be

returned

to

the

counterparty

and

a

fund

at

a

mutually

agreed

upon

date.

Certain

agreements

have

no

stated

maturity

and

can

be

terminated

by

either

party

at

any

time.

Earnings

on

cash

collateral

and

compensation

to

the

lender

of

the

bond

are

based

on

agreed

upon

rates

between

a

fund

and

the

counterparty.

The

value

of

the

underlying

cash

collateral

approximates

the

market

value

and

accrued

interest

of

the

borrowed

bond.

To

the

extent

that

a

borrowed

bond

transaction

exceeds

one

business

day,

the

value

of

the

cash

collateral

in

the

possession

of

the

counterparty

is

monitored

on

a

daily

basis

to

ensure

the

adequacy

of

the

collateral.

As

the

market

value

of

the

borrowed

bond

changes,

the

cash

collateral

is

periodically

increased

or

decreased

with

a

frequency

and

in

amounts

prescribed

in

the

borrowed

bond

agreement.

A

fund

may

also

experience

delays

in

gaining

access

to

the

collateral.

Reverse

Repurchase

Agreements:

Reverse

repurchase

agreements

are

agreements

with

qualified

third-party

broker

dealers

in

which

a

fund

sells

securities

to

a

bank

or

broker-dealer

and

agrees

to

repurchase

the

same

securities

at

a

mutually

agreed

upon

date

and

price.

A

fund

receives

cash

from

the

sale

to

use

for

other

investment

purposes.

During

the

term

of

the

reverse

repurchase

agreement,

a

fund

continues

to

receive

the

principal

and

interest

payments

on

the

securities

sold.

Certain

agreements

have

no

stated

maturity

and

can

be

terminated

by

either

party

at

any

time.

Interest

on

the

value

of

the

reverse

repurchase

agreements

issued

and

outstanding

is

based

upon

competitive

market

rates

determined

at

the

time

of

issuance.

A

fund

may

utilize

reverse

repurchase

agreements

when

it

is

anticipated

that

the

interest

income

to

be

earned

from

the

investment

of

the

proceeds

of

the

transaction

is

greater

than

the

interest

expense

of

the

transaction.

Reverse

repurchase

agreements

involve

leverage

risk.

If

a

fund

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

Consolidated

Statement

of

Assets

and

Liabilities

at

face

value

including

accrued

interest.

Due

to

the

short-term

nature

of

the

reverse

repurchase

agreements,

face

value

approximates

fair

value.

Interest

payments

made

by

a

fund

to

the

counterparties

are

recorded

as

a

component

of

interest

expense

in

the

Consolidated

Statement

of

Operations.

In

periods

of

increased

demand

for

the

security,

a

fund

may

receive

a

fee

for

the

use

of

the

security

by

the

counterparty,

which

may

result

in

interest

income

to

a

fund.

For

the

six

months

ended

June

30,

2023,

the

average

daily

amount

of

reverse

repurchase

agreements outstanding and

the

weighted

average

interest

rate

for

the

Fund

were

$245,283,705

and

4.76%,

respectively.

Borrowed

bond

agreements

and

reverse

repurchase

transactions are

entered

into

by

a

fund

under

Master

Repurchase

Agreements

(each,

an

“MRA”),

which

permit

a

fund,

under

certain

circumstances,

including

an

event

of

default

(such

as

bankruptcy

or

insolvency),

to

offset

payables

and/or

receivables

under

the

MRA

with

collateral

held

and/

or

posted

to

the

counterparty

and

create

one

single

net

payment

due

to

or

from

a

fund.

With

borrowed

bond

agreements

and

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

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

33

Notes

to

Consolidated

Financial

Statements

the

MRA,

a

fund

receives

or

posts

securities

and

cash

as

collateral

with

a

market

value

in

excess

of

the

repurchase

price

to

be

paid

or

received

by

a

fund

upon

the

maturity

of

the

transaction.

Upon

a

bankruptcy

or

insolvency

of

the

MRA

counterparty,

a

fund

is

considered

an

unsecured

creditor

with

respect

to

excess

collateral

and,

as

such,

the

return

of

excess

collateral

may

be

delayed.

As

of

period

end,

the

following

table

is

a

summary

of

the

Fund’s

open

reverse

repurchase

agreements by

counterparty

which

are

subject

to

offset

under

an MRA

on

a

net

basis:

In

the

event

the

counterparty

of

securities

under

an

MRA

files

for

bankruptcy

or

becomes

insolvent,

a

fund’s

use

of

the

proceeds

from

the

agreement

may

be

restricted

while

the

counterparty,

or

its

trustee

or

receiver,

determines

whether

or

not

to

enforce

a

fund’s

obligation

to

repurchase

the

securities.

Short

Sale

Transactions:

 In

short

sale

transactions,

a

fund

sells

a

security

it

does

not

hold

in

anticipation

of

a

decline

in

the

market

price

of

that

security.

When

a

fund

makes

a

short

sale,

it

will

borrow

the

security

sold

short

(borrowed

bond)

and

deliver

the

fixed-income

security

to

the

counterparty

to

which

it

sold

the

security

short.

An

amount

equal

to

the

proceeds

received

by

a

fund

is

reflected

as

an

asset

and

an

equivalent

liability.

The

amount

of

the

liability

is

subsequently

marked-to-market

to

reflect

the

market

value

of

the

short

sale.

A

fund

is

required

to

repay

the

counterparty

interest

on

the

security

sold

short,

which,

if

applicable,

is

included

in

interest

expense

in

the

Consolidated

Statement

of

Operations.

A

fund

is

exposed

to

market

risk

based

on

the

amount,

if

any,

that

the

market

value

of

the

security

increases

beyond

the

market

value

at

which

the

position

was

sold.

Thus,

a

short

sale

of

a

security

involves

the

risk

that

instead

of

declining,

the

price

of

the

security

sold

short

will

rise.

The

short

sale

of

securities

involves

the

possibility

of

an

unlimited

loss

since

there

is

an

unlimited

potential

for

the

market

price

of

the

security

sold

short

to

increase.

A

gain

is

limited

to

the

price

at

which

a

fund

sold

the

security

short.

A

realized

gain

or

loss

is

recognized

upon

the

termination

of

a

short

sale

if

the

market

price

is

either

less

than

or

greater

than

the

proceeds

originally

received.

There

is

no

assurance

that

a

fund

will

be

able

to

close

out

a

short

position

at

a

particular

time

or

at

an

acceptable

price.

5.

Derivative

Financial

Instruments

The

Fund

engages

in

various

portfolio

investment

strategies

using

derivative

contracts

both

to

increase

the

returns

of

the

Fund

and/or

to

manage

its

exposure

to

certain

risks

such

as

credit

risk,

equity

risk,

interest

rate

risk,

foreign

currency

exchange

rate

risk,

commodity

price

risk

or

other

risks

(e.g.,

inflation

risk).

Derivative

financial

instruments

categorized

by

risk

exposure

are

included

in

the

Consolidated

Schedule

of

Investments.

These

contracts

may

be

transacted

on

an

exchange or

OTC.

Futures

Contracts:

Futures

contracts

are

purchased

or

sold

to

gain

exposure

to,

or

manage

exposure

to,

changes

in

interest

rates

(interest

rate

risk)

and

changes

in

the

value

of

equity

securities

(equity

risk)

or

foreign

currencies

(foreign

currency

exchange

rate

risk)

.

Futures

contracts

are

exchange-traded agreements

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

specific

quantity

of

an

underlying

instrument

at

a

specified

price

and

on

a

specified

date.

Depending

on

the

terms

of

a

contract,

it

is

settled

either

through

physical

delivery

of

the

underlying

instrument

on

the

settlement

date

or

by

payment

of

a

cash

amount

on

the

settlement

date.

Upon

entering

into

a

futures

contract,

the

Fund

is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

a

contract’s

size

and

risk

profile.

The

initial

margin

deposit

must

then

be

maintained

at

an

established

level

over

the

life

of

the

contract.

Amounts

pledged,

which

are

considered

restricted,

are

included

in

cash

pledged

for

futures

contracts

in

the Consolidated

Statement

of

Assets

and

Liabilities.

Securities

deposited

as

initial

margin

are

designated

in

the

Consolidated

Schedule

of

Investments

and

cash

deposited,

if

any, are

shown

as

cash

pledged

for

futures

contracts

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Fund

agrees

to

receive

from

or

pay

to

the

broker

an

amount

of

cash

equal

to

the

daily

fluctuation

in

market

value

of

the

contract

(“variation

margin”).

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and,

if

any,

shown

as

variation

margin

receivable

(or

payable)

on

futures

contracts

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

When

the

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

equal

to

the

difference

between

the

notional

amount

of

the

contract

at

the

time

it

was

opened

and

the

notional

amount

at

the

time

it

was

closed.

The

use

of

futures

contracts

involves

the

risk

of

an

imperfect

correlation

in

the

movements

in

the

price

of

futures

contracts

and

interest

rates,

foreign

currency

exchange

rates

or

underlying

assets.

Forward

Foreign

Currency

Exchange

Contracts

:

Forward

foreign

currency

exchange

contracts

are

entered

into

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

A

forward

foreign

currency

exchange

contract

is

an

agreement

between

two

parties

to

buy

and

sell

a

currency

at

a

set

exchange

rate

on

a

specified

date.

These

contracts

help

to

manage

the

overall

exposure

to

the

currencies

in

which

some

of

the

investments

held

by

the

Fund

are

denominated

and

in

some

cases,

may

be

used

to

obtain

exposure

to

a

particular

market.

The

contracts

are

traded

OTC

and

not

on

an

organized

exchange.

The

contract

is

marked-to-market

daily

and

the

change

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

When

a

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

equal

to

the

difference

between

the

value

at

the

time

it

was

opened

and

the

value

at

the

time

it

was

closed.

Non-deliverable

forward

foreign

currency

exchange

contracts

are

settled

with

the

counterparty

in

cash

without

the

Counterparty

Reverse

Repurchase

Agreements

Fair

Value

of

Non-Cash

Collateral

Pledged

Including

Accrued

Interest

(a)

(a)

Cash

Collateral

Pledged/Received

Net

Amount

(b)

Barclays

Capital,

Inc.

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

$

(41,200,710‌)

$

41,200,710‌

$

—‌

$

—‌

TD

Securities

(USA)

LLC

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

(132,076,314‌)

132,076,314‌

—‌

—‌

$

(173,277,024‌)

$

173,277,024‌

$

—‌

$

—‌

(a)

Collateral,

if

any,

with

a

value

of

$174,205,429

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.

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

34

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

Consolidated

Statement

of

Assets

and

Liabilities.

Cash

amounts

pledged

for

forward

foreign

currency

exchange

contracts

are

considered

restricted

and

are

included

in

cash

pledged

as

collateral

for

OTC

derivatives

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

A

Fund’s

risk

of

loss

from

counterparty

credit

risk

on

OTC

derivatives

is

generally

limited

to

the

aggregate

unrealized

gain

netted

against

any

collateral

held

by

the

Fund.

Options:

The

Fund

may purchase

and

write

call

and

put

options

to

increase

or

decrease

its

exposure

to

the

risks

of

underlying

instruments,

including

equity

risk,

interest

rate

risk

and/or

commodity

price

risk

and/or,

in

the

case

of

options

written,

to

generate

gains

from

options

premiums.

A

call

option

gives

the

purchaser

(holder)

of

the

option

the

right

(but

not

the

obligation)

to

buy,

and

obligates

the

seller

(writer)

to

sell

(when

the

option

is

exercised)

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

A

put

option

gives

the

holder

the

right

to

sell

and

obligates

the

writer

to

buy

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

Premiums

paid

on

options

purchased

and

premiums

received

on

options

written,

as

well

as

the

daily

fluctuation

in

market

value,

are

included

in

investments

at

value

–

unaffiliated

and

options

written

at

value,

respectively,

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

When

an

instrument

is

purchased

or

sold

through

the

exercise

of

an

option,

the

premium

is

offset

against

the

cost

or

proceeds

of

the

underlying

instrument.

When

an

option

expires,

a

realized

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

to

the

extent

of

the

premiums

received

or

paid.

When

an

option

is

closed

or

sold,

a

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

to

the

extent

the

cost

of

the

closing

transaction

exceeds

the

premiums

received

or

paid.

When

the

Fund

writes

a

call

option,

such

option

is

typically

“covered,”

meaning

that

it

holds

the

underlying

instrument

subject

to

being

called

by

the

option

counterparty.

When

the

Fund

writes

a

put

option,

cash

is

segregated in

an

amount

sufficient

to

cover

the

obligation.

These

amounts,

which

are

considered

restricted,

are

included

in

cash

pledged

as

collateral

for

options

written

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Swaptions

–

The

Fund

may purchase

and

write

swaptions

primarily

to

preserve

a

return

or

spread

on

a

particular

investment

or

portion

of

the

Fund’s

holdings,

as

a

duration

management

technique

or

to

protect

against

an

increase

in

the

price

of

securities

it

anticipates

purchasing

at

a

later

date.

The

purchaser

and

writer

of

a

swaption

is

buying

or

granting

the

right

to

enter

into

a

previously

agreed

upon

interest

rate

or

credit

default

swap

agreement

(interest

rate

risk

and/or

credit

risk)

at

any

time

before

the

expiration

of

the

option. 

Foreign

currency

options

–

The

Fund

may purchase

and

write

foreign

currency

options,

foreign

currency

futures

and

options

on

foreign

currency

futures

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

Foreign

currency

options

give

the

purchaser

the

right

to

buy

from

or

sell

to

the

writer

a

foreign

currency

at

any

time

before

the

expiration

of

the

option.

Barrier

options

–

The

Fund

may

purchase

and

write

a

variety

of

options

with

non-standard

payout

structures

or

other

features

(“barrier

options”)

that

are

generally

traded

OTC.

The

Fund

may

invest

in

various

types

of

barrier

options,

including

down-and-out

options,

down-and-in

options,

double

no-touch

options,

one-touch

options,

instant

one-touch

options,

up-and-out

options

and

up-and-in

options.

Down-and-out

options

expire

worthless

to

the

purchaser

if

the

price

of

the

underlying

instrument

falls

below

a

specific

barrier

price

level

prior

to

the

expiration

date.

Down-and-in

options

expire

worthless

to

the

purchaser

unless

the

price

of

the

underlying

instrument

falls

below

a

specific

barrier

price

level

prior

to

the

expiration

date.

Double

no-touch

options

provide

the

purchaser

an

agreed-upon

payout

if

the

price

of

the

underlying

instrument

does

not

reach

or

surpass

predetermined

barrier

price

levels

prior

to

the

option’s

expiration

date.

One-touch

options

and

instant

one-touch

options

provide

the

purchaser

an

agreed-upon

payout

if

the

price

of

the

underlying

instrument

reaches

or

surpasses

predetermined

barrier

price

levels

prior

to

the

expiration

date.

Up-

and-out

options

expire

worthless

to

the

purchaser

if

the

price

of

the

underlying

instrument

increases

beyond

a

predetermined

barrier

price

level

prior

to

the

expiration

date.

Up-and-in

options

can

only

be

exercised

when

the

price

of

the

underlying

instrument

increases

beyond

a

predetermined

barrier

price

level.

In

purchasing

and

writing

options,

the

Fund

bears

the

risk

of

an

unfavorable

change

in

the

value

of

the

underlying

instrument

or

the

risk

that

it

may

not

be

able

to

enter

into

a

closing

transaction

due

to

an

illiquid

market.

Exercise

of

a

written

option

could

result

in

the

Fund

purchasing

or

selling

a

security

when

it

otherwise

would

not,

or

at

a

price

different

from

the

current

market

value.

Swaps:

Swap

contracts

are

entered

into

to

manage

exposure

to

issuers,

markets

and

securities.

Such

contracts

are

agreements

between

the

Fund

and

a

counterparty

to

make

periodic

net

payments

on

a

specified

notional

amount

or

a

net

payment

upon

termination.

Swap

agreements

are

privately

negotiated

in

the

OTC

market

and

may

be

entered

into

as

a

bilateral

contract

(“OTC

swaps”)

or

centrally

cleared

(“centrally

cleared

swaps”).

For

OTC

swaps,

any

upfront

premiums

paid

and

any

upfront

fees

received

are

shown

as

swap

premiums

paid

and

swap

premiums

received,

respectively,

in

the

Consolidated

Statement

of

Assets

and

Liabilities

and

amortized

over

the

term

of

the

contract.

The

daily

fluctuation

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

on

OTC

Swaps

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Payments

received

or

paid

are

recorded

in

the

Consolidated

Statement

of

Operations

as

realized

gains

or

losses,

respectively.

When

an

OTC

swap

is

terminated,

a

realized

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

equal

to

the

difference

between

the

proceeds

from

(or

cost

of)

the

closing

transaction

and

the

Fund’s

basis

in

the

contract,

if

any.

Generally,

the

basis

of

the

contract

is

the

premium

received

or

paid.

In

a

centrally

cleared

swap,

immediately

following

execution

of

the

swap

contract,

the

swap

contract

is

novated

to

a

central

counterparty

(the

“CCP”)

and

the

CCP

becomes

the Fund’s

counterparty

on

the

swap.

The

Fund

is

required

to

interface

with

the

CCP

through

the

broker.

Upon

entering

into

a

centrally

cleared

swap,

the

Fund

is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

the

size

and

risk

profile

of

the

particular

swap. Securities

deposited

as

initial

margin

are

designated

in

the

Consolidated

Schedule

of

Investments

and

cash

deposited

is

shown

as

cash

pledged

for

centrally

cleared

swaps

in

the

Consolidated

Statement

of

Assets

and

Liabilities. Amounts

pledged,

which

are

considered

restricted

cash,

are

included

in

cash

pledged

for

centrally

cleared

swaps

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Fund

agrees

to

receive

from

or

pay

to

the

broker

variation

margin.

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and

shown

as

variation

margin

receivable

(or

payable)

on

centrally

cleared

swaps

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Payments

received

from

(paid

to)

the

counterparty

are

amortized

over

the

term

of

the

contract

and

recorded

as

realized

gains

(losses)

in

the

Consolidated

Statement

of

Operations,

including

those

at

termination.

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

35

Notes

to

Consolidated

Financial

Statements

Credit

default

swaps

—

Credit

default

swaps

are

entered

into

to

manage

exposure

to

the

market

or

certain

sectors

of

the

market,

to

reduce

risk

exposure

to

defaults

of

corporate

and/or

sovereign

issuers

or

to

create

exposure

to

corporate

and/or

sovereign

issuers

to

which

a

fund

is

not

otherwise

exposed

(credit

risk).

The

Fund

may

either

buy

or

sell

(write)

credit

default

swaps

on

single-name

issuers

(corporate

or

sovereign),

a

combination

or

basket

of

single-name

issuers

or

traded

indexes.

Credit

default

swaps

are

agreements

in

which

the

protection

buyer

pays

fixed

periodic

payments

to

the

seller

in

consideration

for

a

promise

from

the

protection

seller

to

make

a

specific

payment

should

a

negative

credit

event

take

place

with

respect

to

the

referenced

entity

(e.g.,

bankruptcy,

failure

to

pay,

obligation

acceleration,

repudiation,

moratorium

or

restructuring).

As

a

buyer,

if

an

underlying

credit

event

occurs,

the

Fund

will

either

(i)

receive

from

the

seller

an

amount

equal

to

the

notional

amount

of

the

swap

and

deliver

the

referenced

security

or

underlying

securities

comprising

the

index,

or

(ii)

receive

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

As

a

seller

(writer),

if

an

underlying

credit

event

occurs,

the

Fund

will

either

pay

the

buyer

an

amount

equal

to

the

notional

amount

of

the

swap

and

take

delivery

of

the

referenced

security

or

underlying

securities

comprising

the

index

or

pay

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

Total

return

swaps

—

Total

return

swaps

are

entered

into

to

obtain

exposure

to

a

security

or

market

without

owning

such

security

or

investing

directly

in

such

market

or

to

exchange

the

risk/return

of

one

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

Fund

receives

payment

from

or

makes

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

—

The

Fund

may enter

into

forward

interest

rate

swaps

and

forward

total

return

swaps.

In

a

forward

swap,

the

Fund

and

the

counterparty

agree

to

make

periodic

net

payments

beginning

on

a

specified

date

or

a

net

payment

at

termination.

Inflation

swaps

—

Inflation

swaps

are

entered

into

to

gain

or

reduce

exposure

to

inflation

(inflation

risk).

In

an

inflation

swap,

one

party

makes

fixed

interest

payments

on

a

notional

principal

amount

in

exchange

for

another

party’s

variable

payments

based

on

an

inflation

index,

such

as

the

Consumer

Price

Index.

Swap

transactions

involve,

to

varying

degrees,

elements

of

interest

rate,

credit

and

market

risks

in

excess

of

the

amounts

recognized

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Such

risks

involve

the

possibility

that

there

will

be

no

liquid

market

for

these

agreements,

that

the

counterparty

to

the

agreements

may

default

on

its

obligation

to

perform

or

disagree

as

to

the

meaning

of

the

contractual

terms

in

the

agreements,

and

that

there

may

be

unfavorable

changes

in

interest

rates

and/or

market

values

associated

with

these

transactions.

Master

Netting

Arrangements:

In

order

to

define

its

contractual

rights

and

to

secure

rights

that

will

help

it mitigate its

counterparty

risk, the

Fund

may

enter

into

an

International

Swaps

and

Derivatives

Association,

Inc.

Master

Agreement

(“ISDA

Master

Agreement”)

or

similar

agreement

with

its

counterparties.

An

ISDA

Master

Agreement

is

a

bilateral

agreement

between a

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, a

Fund

may,

under

certain

circumstances,

offset

with

the

counterparty

certain

derivative

financial

instruments’

payables

and/or

receivables

with

collateral

held

and/or

posted

and

create

one

single

net

payment.

The

provisions

of

the

ISDA

Master

Agreement

typically

permit

a

single

net

payment

in

the

event

of

default

including

the

bankruptcy

or

insolvency

of

the

counterparty.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

the

right

of

offset

in

bankruptcy,

insolvency

or

other

events.

Collateral

Requirements:

For

derivatives

traded

under

an

ISDA

Master

Agreement,

the

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

any

collateral

currently

pledged

by

the

Fund(s)

and

the

counterparty.

Cash

collateral

that

has

been

pledged

to

cover

obligations

of

the

Fund

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Consolidated

Statement

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

and

cash

received

as

collateral,

respectively.

Non-cash

collateral

pledged

by

the

Fund,

if

any,

is

noted

in

the

Consolidated

Schedule

of

Investments.

Generally,

the

amount

of

collateral

due

from

or

to

a

counterparty

is

subject

to

a

certain

minimum

transfer

amount

threshold

before

a

transfer

is

required,

which

is

determined

at

the

close

of

business

of

the

Fund.

Any

additional

required

collateral

is

delivered

to/pledged

by

the

Fund

on

the

next

business

day.

Typically,

the

counterparty

is

not

permitted

to

sell,

re-pledge

or

use

cash

and

non-cash

collateral

it

receives.

The

Fund

generally

agrees

not

to

use

non-cash

collateral

that

it

receives

but

may,

absent

default

or

certain

other

circumstances

defined

in

the

underlying

ISDA

Master

Agreement,

be

permitted

to

use

cash

collateral

received.

In

such

cases,

interest

may

be

paid

pursuant

to

the

collateral

arrangement

with

the

counterparty.

To

the

extent

amounts

due

to

the

Fund

from the

counterparties

are

not

fully

collateralized, the

Fund bears

the

risk

of

loss

from

counterparty

non-performance.

Likewise,

to

the

extent

the

Fund

has

delivered

collateral

to

a

counterparty

and

stands

ready

to

perform

under

the

terms

of

its

agreement

with

such

counterparty, the

Fund bears the

risk

of

loss

from

a

counterparty

in

the

amount

of

the

value

of

the

collateral

in

the

event

the

counterparty

fails

to

return

such

collateral.

Based

on

the

terms

of

agreements,

collateral

may

not

be

required

for

all

derivative

contracts.

For

financial

reporting

purposes,

the

Fund

does

not

offset

derivative

assets

and

derivative

liabilities

that

are

subject

to

netting

arrangements,

if

any,

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

36

6.

INVESTMENT

ADVISORY

AGREEMENT

AND

OTHER

TRANSACTIONS

WITH

AFFILIATES 

Investment

Advisory:

The

Trust,

on

behalf

of

the

Fund,

entered

into

an

Investment

Advisory

Agreement

with

the

Manager,

the

Fund’s

investment

adviser

and

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

Inc.

(“BlackRock”),

to

provide

investment

advisory

services.

The

Manager

is

responsible

for

the

management

of the

Fund’s

portfolio

and

provides

the

personnel,

facilities,

equipment

and

certain

other

services

necessary

to

the

operations

of the

Fund.

For

such

services,

the

Fund

pays

the

Manager

a

monthly

fee

at

an

annual

rate

equal

to

the

following

percentages

of

the

average

daily

value

of

the

Fund’s

net

assets:

The

Manager

provides

investment

management

and

other

services

to

the

Cayman

Subsidiary.

The

Manager

does

not

receive

separate

compensation

from

the

Cayman

Subsidiary

for

providing

investment

management

or

administrative

services.

However,

the

Fund

pays

the

Manager

based

on

the

Fund's

net

assets,

which

includes

the

assets

of

the

Cayman Subsidiary.

The

Manager

entered

into

separate

sub-advisory

agreements

with

each

of

BlackRock

International

Limited

(“BIL”)

and

BlackRock

(Singapore)

Limited

("BSL")

(collectively,

the

“Sub-Advisers”),

each

an

affiliate

of

the

Manager.

The

Manager

pays

BIL

and

BSL

for

services

they

provide

for

that

portion

of

the

Fund

for

which

BIL

and

BSL,

as

applicable,

acts

as

sub-adviser,

a

monthly

fee

that

is

equal

to

a

percentage

of

the

investment

advisory

fees

paid

by

the

Fund

to

the

Manager.

Service

and

Distribution

Fees:

 The

Trust

,

on behalf

of

the

Fund,

entered

into

a

Distribution

Agreement

and

a Distribution and

Service

Plan

with

BlackRock

Investments,

LLC

(“BRIL”),

an

affiliate

of

the

Manager.

Pursuant

to

the

Distribution

and

Service

Plan

and

in

accordance

with

Rule

12b-1

under

the

1940

Act,

the

Fund

pays

BRIL

ongoing

service

and

distribution

fees.

The

fees

are

accrued

daily

and

paid

monthly

at

annual

rates

based

upon

the

average

daily

net

assets

of

the

relevant

share

class

of

the

Fund

as

follows:

BRIL

and

broker-dealers,

pursuant

to

sub-agreements

with

BRIL,

provide

shareholder

servicing

and

distribution

services to

the

Fund.

The

ongoing

service and/or

distribution

fee compensates BRIL

and

each

broker-dealer

for

providing

shareholder

servicing

and/or

distribution related

services

to

shareholders.

For

the six

months

ended

June

30,

2023,

the

following

table

shows

the

class

specific

service

and

distribution

fees

borne

directly

by

each

share

class

of

the

Fund:

Administration:

The

Trust,

on

behalf

of

the

Fund,

entered

into

an

Administration

Agreement

with

the

Manager,

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

to

provide

administrative

services.

For

these

services,

the

Manager

receives

an

administration

fee

computed

daily

and

payable

monthly,

based

on

a

percentage

of

the

average

daily

net

assets

of

the

Fund.

The

administration

fee,

which

is

shown

as

administration

in

the

Consolidated

Statement

of

Operations,

is

paid

at

the

annual

rates

below.

In

addition,

the

Manager

charges

each

of

the

share

classes

an

administration

fee,

which

is

shown

as

administration —

class

specific

in

the

Consolidated

Statement

of

Operations,

at

an

annual

rate

of

0.02% of

the

average

daily

net

assets

of

each

respective

class.

For

the

six

months

ended

June

30,

2023, the

following

table

shows

the

class

specific

administration

fees

borne

directly

by

each

share

class

of

the

Fund:

Average

Daily

Net

Assets

Investment

Advisory

Fees

First

$1

billion

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

0.250%

$1

billion

-

$3

billion

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

0.240

$

3

billion

-

$5

billion

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

0.230

$5

billion

-

$10

billion

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

0.220

Greater

than

$10

billion

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

0.210

Share

Class

Service

Fees

Distribution

Fees

Investor

A

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

0.25‌%

—‌%

Investor

C

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

0.25‌

0.75‌

Share

Class

Service

and

Distribution

Fees

Investor

A

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

$

535,934‌

Investor

C

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

191,801‌

$

727,735‌

Average

Daily

Net

Assets

Administration

Fees

First

$500

million

0.0425

%

$500

million

-

$1

billion

0.0400

$1

billion

-

$2

billion

0.0375

$2

billion

-

$4

billion

0.0350

$4

billion

-

$13

billion

0.0325

Greater

than

$13

billion

0.0300

Institutional

Investor

A

Investor

C

Class

K

Total

Administration

fees

-

class

specific

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

$

146,533‌

$

42,875‌

$

3,836‌

$

65,475‌

$

258,719‌

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

37

Notes

to

Consolidated

Financial

Statements

Transfer

Agent:

Pursuant

to

written

agreements,

certain

financial

intermediaries,

some

of

which

may

be

affiliates,

provide

the

Fund

with

sub-accounting,

recordkeeping,

sub-transfer

agency

and

other

administrative

services

with

respect

to

servicing

of

underlying

investor

accounts.

For

these

services,

these

entities

receive

an

asset-based

fee

or

an

annual

fee

per

shareholder

account,

which

will

vary

depending

on

share

class

and/or

net

assets.

For

the

six

months ended June

30,

2023,

the

Fund

paid

the

following

amounts

to

affiliates

of

BlackRock

in

return

for

these

services,

which

are

included

in

transfer

agent

—

class

specific

in

the

Consolidated

Statement

of

Operations:

The

Manager

maintains

a

call

center

that

is

responsible

for

providing

certain

shareholder

services

to

the

Fund.

Shareholder

services

include

responding

to

inquiries

and

processing

purchases

and

sales

based

upon

instructions

from

shareholders.

For

the six

months

ended

June

30,

2023,

the

Fund

reimbursed

the

Manager

the

following

amounts

for

costs

incurred

in

running

the

call

center,

which

are

included

in

transfer

agent

—

class

specific

in

the

Consolidated

Statement

of

Operations:

For

the

six

months ended

June

30,

2023,

the

following

table

shows

the

class

specific

transfer

agent

fees

borne

directly

by

each

share

class

of

the

Fund:

Other

Fees:

For

the

six

months

 ended 

June

30,

2023

,

affiliates

earned

underwriting

discounts,

direct

commissions

and

dealer

concessions

on

sales

of

the Fund's

Investor

A

Shares for

a

total

of

$3,269

.

For

the six

months

ended

June

30,

2023,

affiliates

received

CDSCs

as

follows:

Expense

Limitations,

Waivers

and

Reimbursements:

The

Manager

contractually

agreed

to

waive

its

investment

advisory

fees

by

the

amount

of

investment

advisory

fees

the

Fund

pays

to

the

Manager

indirectly

through

its

investment

in

affiliated

money

market

funds

(the

“affiliated

money

market

fund

waiver”)

through

June

30,

2024.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Trustees

,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

the

Fund.

The

amount

of

waivers

and/or

reimbursements

of

fees

and

expenses

made

pursuant

to

the

expense

limitation

described

below

will

be

reduced

by

the

amount

of

the

affiliated

money

market

fund

waiver. This

amount

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Consolidated

Statement

of

Operations.

For

the

six

months

ended

June

30,

2023,

the

amount

waived

was

$1,225.

The

Manager

has

contractually

agreed

to

waive

its

investment

advisory

fee

with

respect

to

any

portion

of

the

Fund’s

assets

invested

in

affiliated

equity

and

fixed-income mutual

funds

and

affiliated

exchange-traded

funds

that

have

a

contractual

management

fee

through

June

30,

2024.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

the

Fund.

This

amount

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Consolidated

Statement

of

Operations.

For

the

six

months

ended

June

30,

2023,

the

Manager

waived

$11,764

in

investment

advisory

fees

pursuant

to

this

arrangement.

The

Manager

contractually

agreed

to

waive

and/or

reimburse

fees

or

expenses

in

order

to

limit

expenses,

excluding

interest

expense,

dividend

expense,

tax

expense,

acquired

fund

fees

and

expenses,

and

certain

other

fund

expenses,

which

constitute

extraordinary

expenses

not

incurred

in

the

ordinary

course

of

the

Fund’s

business

(“expense

limitation”).

The

expense

limitations

as

a

percentage

of

average

daily

net

assets

are

as

follows:

The

Manager

has

agreed

not

to

reduce

or

discontinue

the

contractual

expense

limitations

through

June

30,

2024,

unless

approved

by

the

Board,

including

a

majority

of

the Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of the

Fund.

For

the

six

months ended

June

30,

2023,

the

Manager

waived

and/or

reimbursed

investment

advisory

fees

of

$370,564 which

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Consolidated

Statement

of

Operations.

In

addition,

these

amounts

waived

and/or

reimbursed

by

the

Manager are

included

in administration

fees

waived

by

the

Manager

—

class

specific

and

transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific,

respectively,

in

the

Consolidated

Statement

of

Operations.

For

the

six

months ended

June

30,

2023,

class

specific

expense

waivers

and/or

reimbursements were as

follows: 

Institutional

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

$

96,275

Institutional

Investor

A

Investor

C

Class

K

Total

Reimbursed

Amount

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

$

2,628‌

$

4,931‌

$

1,783‌

$

1,437‌

$

10,779‌

Institutional

Investor

A

Investor

C

Class

K

Total

Transfer

agent

fees

-

class

specific

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

$

1,092,119‌

$

343,516‌

$

15,646‌

$

12,794‌

$

1,464,075‌

Investor

A

$

1,116‌

Investor

C

3,451‌

Institutional

Investor

A

Investor

C

Class

K

Expense

Limitations

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

0.34‌%

0.59‌%

1.34‌%

0.29‌%

Share

Class

Administration

Fees

Waived

by

the

Manager

-

Class

Specific

Transfer

Agent

Fees

Waived

and/or

Reimbursed

by

the

Manager

-

Class

Specific

Institutional

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

$

146,53

3‌

$

723,182‌

Investor

A

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

42,875‌

235,46

6‌

Investor

C

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

3,836‌

6,020‌

Class

K

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

65,475‌

12,79

4‌

$

258,7

19‌

$

977,462‌

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

38

Interfund

Lending:

In

accordance

with

an

exemptive

order

(the

“Order”)

from

the

U.S.

Securities

and

Exchange

Commission

(“SEC”),

the

Fund

may

participate

in

a

joint

lending

and

borrowing

facility

for

temporary

purposes

(the

“Interfund

Lending

Program”),

subject

to

compliance

with

the

terms

and

conditions

of

the

Order,

and

to

the

extent

permitted

by

the

Fund’s

investment

policies

and

restrictions.

The

Fund

is

currently

permitted

to borrow

and

lend

under

the

Interfund

Lending

Program. 

A

lending

BlackRock

fund

may

lend

in

aggregate

up

to

15%

of

its

net

assets

but

may

not

lend

more

than

5%

of

its

net

assets

to

any

one

borrowing

fund

through

the

Interfund

Lending

Program.

A

borrowing

BlackRock

fund

may

not

borrow

through

the

Interfund

Lending

Program

or

from

any

other

source

more

than

33

1/3%

of

its

total

assets

(or

any

lower

threshold

provided

for

by

the fund’s

investment

restrictions).

If

a

borrowing

BlackRock

fund’s

total

outstanding

borrowings

exceed

10%

of

its

total

assets,

each

of

its

outstanding

interfund

loans

will

be

subject

to

collateralization

of

at

least

102%

of

the

outstanding

principal

value

of

the

loan.

All

interfund

loans

are

for

temporary

or

emergency

purposes

and

the

interest

rate

to

be

charged

will

be

the

average

of

the

highest

current

overnight

repurchase

agreement

rate

available

to

a

lending

fund

and

the

bank

loan

rate,

as

calculated

according

to

a

formula

established

by

the

Board. 

During the

period

ended

June

30,

2023,

the

Fund

did

not

participate

in

the

Interfund

Lending

Program.

Trustees

and

Officers: 

Certain

trustees

and/or

officers

of

the Trust are directors and/or

officers

of BlackRock

or

its

affiliates.

The

Fund

reimburses

the

Manager

for

a

portion

of

the

compensation

paid

to

the 

Fund’s

Chief

Compliance

Officer,

which

is

included

in

Trustees and

Officer

in

the

Consolidated

Statement

of

Operations. 

7.

PURCHASES

AND

SALES 

For

the

six

months ended

June

30,

2023,

purchases

and

sales

of

investments,

including

paydowns

and

mortgage

dollar

rolls and

excluding

short-term

investments,

were

as

follows:

For

the

six

months ended

June

30,

2023,

purchases

and

sales

related

to

mortgage

dollar

rolls

were

$544,287,259

and

$544,233,075,

respectively. 

8.

INCOME

TAX

INFORMATION 

It

is

the

Fund’s

policy

to

comply

with

the

requirements

of

the

Internal

Revenue

Code

of

1986,

as

amended,

applicable

to

regulated

investment

companies,

and

to

distribute

substantially

all

of

its

taxable

income

to

its

shareholders.

Therefore,

no

U.S.

federal

income

tax

provision

is

required. 

The

Fund

files

U.S.

federal

and

various

state

and

local

tax

returns.

No

income

tax

returns

are

currently

under

examination.

The

statute

of

limitations

on

the

Fund’s

U.S.

federal

tax

returns

generally

remains

open

for

a

period

of

three

years

after

they

are

filed.

The

statutes

of

limitations

on

the

Fund’s

state

and

local

tax

returns

may

remain

open

for

an

additional

year

depending

upon

the

jurisdiction. 

Management

has

analyzed

tax

laws

and

regulations

and

their

application

to

the Fund

as

of

June

30,

2023,

inclusive

of

the

open

tax

return

years,

and

does

not

believe

that

there

are

any

uncertain

tax

positions

that

require

recognition

of

a

tax

liability

in

the

Fund’s

consolidated

financial

statements.

As

of

December

31,

2022, the Fund

had

qualified

late-year

losses of

$44,565,558. 

As

of

June

30,

2023, gross

unrealized

appreciation

and

depreciation

based

on

cost

of

investments

(including

short

positions

and

derivatives,

if

any)

for

U.S.

federal

income

tax

purposes

were

as

follows: 

9.

BANK

BORROWINGS 

The

Trust,

on

behalf

of

the

Fund,

along

with

certain

other

funds

managed

by

the

Manager

and

its

affiliates

(“Participating

Funds”), is

party

to

a

364-day,

$2.50

billion

credit

agreement

with

a

group

of

lenders.

Under

this

agreement,

the

Fund

may

borrow

to

fund

shareholder

redemptions.

Excluding

commitments

designated

for

certain

individual

funds,

the

Participating

Funds,

including

the

Fund,

can

borrow

up

to

an

aggregate

commitment

amount

of

$1.75

billion

at

any

time

outstanding,

subject

to

asset

coverage

and

other

limitations

as

specified

in

the

agreement.

The

credit

agreement

has

the

following

terms:

a

fee

of

0.10%

per

annum

on

unused

commitment

amounts

and

interest

at

a

rate

equal

to

the

higher

of

(a)

Overnight

Bank

Funding

Rate

(“OBFR”)

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.80%

per

annum,

(b)

the

Fed

Funds

rate

(but,

in

any

event,

not

less

than

0.00%)

in

effect

from

time

to

time

plus

0.80%

per

annum

on

amounts

borrowed

or

(c)

the

sum

of

(x)

Daily

Simple

Secured

Overnight

Financing

Rate

(“SOFR”)

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.10%

and

(y)

0.80%

per

annum. The

agreement

expires

in

April

2024

unless

extended

or

renewed. These

fees

were

allocated

among

such

funds

based

upon

portions

of

the

aggregate

commitment

available

to

them

and

relative

net

assets

of

Participating

Funds.

During

the

six

months ended

June

30,

2023,

the

Fund

did

not

borrow

under

the

credit

agreement.

U.S.

Government

Securities

Other

Securities

Fund

Name

Purchases

Sales

Purchases

Sales

BlackRock

Inflation

Protected

Bond

Portfolio

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

$

915,640,448‌

$

1,325,222,076‌

$

1,544,191,034‌

$

1,410,317,403‌

Fund

Name

Tax

Cost

Gross

Unrealized

Appreciation

Gross

Unrealized

Depreciation

Net

Unrealized

Appreciation

(Depreciation)

BlackRock

Inflation

Protected

Bond

Portfolio

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

$

3,095,633,438‌

$

10,981,150‌

$

(308,307,173‌)

$

(297,326,023‌)

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

39

Notes

to

Consolidated

Financial

Statements

10.

 PRINCIPAL

RISKS 

In

the

normal

course

of

business,

the

Fund

invests

in

securities

or

other

instruments

and

may

enter

into

certain

transactions,

and

such

activities

subject

the

Fund

to

various

risks,

including

among

others,

fluctuations

in

the

market

(market

risk)

or

failure

of

an

issuer

to

meet

all

of

its

obligations.

The

value

of

securities

or

other

instruments

may

also

be

affected

by

various

factors,

including,

without

limitation:

(i)

the

general

economy;

(ii)

the

overall

market

as

well

as

local,

regional

or

global

political

and/or

social

instability;

(iii)

regulation,

taxation

or

international

tax

treaties

between

various

countries;

or

(iv)

currency,

interest

rate

and

price

fluctuations.

Local,

regional

or

global

events

such

as

war,

acts

of

terrorism,

the

spread

of

infectious

illness

or

other

public

health

issues,

recessions,

or

other

events

could

have

a

significant

impact

on

the

Fund

and its

investments.

The

Fund’s

prospectus

provides

details

of

the

risks

to

which

the

Fund

is

subject. 

Market Risk:

The

Fund

may

be

exposed

to

prepayment

risk,

which

is

the

risk

that

borrowers

may

exercise

their

option

to

prepay

principal

earlier

than

scheduled

during

periods

of

declining

interest

rates,

which

would

force

the

Fund

to

reinvest

in

lower

yielding

securities. The

Fund

may

also

be

exposed

to

reinvestment

risk,

which

is

the

risk

that

income

from

the

Fund’s

portfolio

will

decline

if

the Fund

invests

the

proceeds

from

matured,

traded

or

called

fixed-income

securities

at

market

interest

rates

that

are

below

the

Fund

portfolio’s

current

earnings

rate.

Infectious

Illness

Risk:

An

outbreak

of

an

infectious

illness,

such

as

the

COVID-19

pandemic,

may

adversely

impact

the

economies

of

many

nations

and

the

global

economy,

and

may

impact

individual

issuers

and

capital

markets

in

ways

that

cannot

be

foreseen.

An

infectious

illness

outbreak

may

result

in,

among

other

things,

closed

international

borders,

prolonged

quarantines,

supply

chain

disruptions,

market

volatility

or

disruptions

and

other

significant

economic,

social

and

political

impacts.

Valuation

Risk:

The

market

values

of

equities,

such

as

common

stocks

and

preferred

securities

or

equity

related

investments,

such

as

futures

and

options,

may

decline

due

to

general

market

conditions

which

are

not

specifically

related

to

a

particular

company.

They

may

also

decline

due

to

factors

which

affect

a

particular

industry

or

industries. The

Fund

may

invest

in

illiquid

investments.

An

illiquid

investment

is

any

investment

that the

Fund

reasonably

expects

cannot

be

sold

or

disposed

of

in

current

market

conditions

in

seven

calendar

days

or

less

without

the

sale

or

disposition

significantly

changing

the

market

value

of

the

investment. The

Fund

may

experience

difficulty

in

selling

illiquid

investments

in

a

timely

manner

at

the

price

that it

believes

the

investments

are

worth.

Prices

may

fluctuate

widely

over

short

or

extended

periods

in

response

to

company,

market

or

economic

news.

Markets

also

tend

to

move

in

cycles,

with

periods

of

rising

and

falling

prices.

This

volatility

may

cause

the

Fund’s

NAV

to

experience

significant

increases

or

decreases

over

short

periods

of

time.

If

there

is

a

general

decline

in

the

securities

and

other

markets,

the

NAV

of the

Fund

may

lose

value,

regardless

of

the

individual

results

of

the

securities

and

other

instruments

in

which the

Fund

invests. 

Counterparty

Credit

Risk:

The

Fund

may

be

exposed

to

counterparty

credit

risk,

or

the

risk

that

an

entity

may

fail

to

or

be

unable

to

perform

on

its

commitments

related

to

unsettled

or

open

transactions,

including

making

timely

interest

and/or

principal

payments

or

otherwise

honoring

its

obligations.

The

Fund

manages

counterparty

credit

risk

by

entering

into

transactions

only

with

counterparties

that

the

Manager

believes

have

the

financial

resources

to

honor

their

obligations

and

by

monitoring

the

financial

stability

of

those

counterparties.

Financial

assets,

which

potentially

expose

the

Fund

to

market,

issuer

and

counterparty

credit

risks,

consist

principally

of

financial

instruments

and

receivables

due

from

counterparties.

The

extent

of

the

Fund’s

exposure

to

market,

issuer

and

counterparty

credit

risks

with

respect

to

these

financial

assets

is

approximately

their

value

recorded

in

the

Consolidated

Statement

of

Assets

and

Liabilities,

less

any

collateral

held

by

the

Fund. 

A

derivative

contract

may

suffer

a

mark-to-market

loss

if

the

value

of

the

contract

decreases

due

to

an

unfavorable

change

in

the

market

rates

or

values

of

the

underlying

instrument.

Losses

can

also

occur

if

the

counterparty

does

not

perform

under

the

contract.

For

OTC

options

purchased,

the

Fund

bears

the

risk

of

loss

in

the

amount

of

the

premiums

paid

plus

the

positive

change

in

market

values

net

of

any

collateral

held

by

the

Fund

should

the

counterparty

fail

to

perform

under

the

contracts.

Options

written

by

the

Fund

do

not

typically

give

rise

to

counterparty

credit

risk,

as

options

written

generally

obligate

the

Fund,

and

not

the

counterparty,

to

perform.

The

Fund

may

be

exposed

to

counterparty

credit

risk

with

respect

to

options

written

to

the

extent

the

Fund

deposits

collateral

with

its

counterparty

to

a

written

option. 

With

exchange-traded

options

purchased

and

exchange-traded

futures

and

centrally

cleared

swaps,

there

is

less

counterparty

credit

risk

to

the

Fund

since

the

exchange

or

clearinghouse,

as

counterparty

to

such

instruments,

guarantees

against

a

possible

default.

The

clearinghouse

stands

between

the

buyer

and

the

seller

of

the

contract;

therefore,

credit

risk

is

limited

to

failure

of

the

clearinghouse.

While

offset

rights

may

exist

under

applicable

law, the

Fund

does

not

have

a

contractual

right

of

offset

against

a

clearing

broker

or

clearinghouse

in

the

event

of

a

default

(including

the

bankruptcy

or

insolvency).

Additionally,

credit

risk

exists

in exchange-traded

futures

and

centrally

cleared

swaps with

respect

to

initial

and

variation

margin

that

is

held

in

a

clearing

broker’s

customer

accounts.

While

clearing

brokers

are

required

to

segregate

customer

margin

from

their

own

assets,

in

the

event

that

a

clearing

broker

becomes

insolvent

or

goes

into

bankruptcy

and

at

that

time

there

is

a

shortfall

in

the

aggregate

amount

of

margin

held

by

the

clearing

broker

for

all

its

clients,

typically

the

shortfall

would

be

allocated

on

a

pro

rata

basis

across

all

the

clearing

broker’s

customers,

potentially

resulting

in

losses

to

the

Fund. 

Geographic/Asset

Class

Risk:

 A

diversified

portfolio,

where

this

is appropriate

and

consistent

with

a

fund’s

objectives,

minimizes

the

risk

that

a

price

change

of

a

particular

investment

will

have

a

material

impact

on

the

NAV

of

a

fund.

The

investment

concentrations

within

the

Fund’s

portfolio

are

disclosed

in

its Consolidated

Schedule

of

Investments.

The

Fund

invests

a

significant

portion

of

its

assets

in fixed-income securities and/or uses

derivatives tied

to

the

fixed-income

markets.

Changes

in

market

interest

rates

or

economic

conditions

may affect

the

value

and/or

liquidity

of

such investments.

Interest

rate

risk

is

the

risk

that

prices

of

bonds

and

other

fixed-income

securities

will

decrease

as

interest

rates

rise

and

increase

as

interest

rates

fall.

The

Fund

may

be

subject

to

a

greater

risk

of

rising

interest

rates

due

to

the period

of

historically

low

interest

rates

that

ended

in

March

2022. The

Federal

Reserve

has

recently been

raising the

federal

funds

rate

as

part

of

its

efforts

to

address

inflation.

There

is

a

risk

that

interest

rates

will

continue

to

rise,

which

will

likely

drive

down

the

prices

of

bonds

and

other

fixed-income

securities,

and

could

negatively

impact

the

Fund’s

performance.

The

Fund

invests

a

significant

portion

of

its

assets

in

securities

of

issuers

located

in

the

United

States.

A

decrease

in

imports

or

exports,

changes

in

trade

regulations,

inflation

and/or

an

economic

recession

in

the

United

States

may

have

a

material

adverse

effect

on

the

U.S.

economy

and

the

securities

listed

on

U.S.

exchanges.

Proposed

and

adopted

policy

and

legislative

changes

in

the

United

States

may

also

have

a

significant

effect

on

U.S.

markets

generally,

as

well

as

on

the

value

of

certain

securities.

Governmental

agencies

project

that

the

United

States

will

continue

to

maintain

elevated

public

debt

levels

for

the

foreseeable

future

which

may

constrain

future

economic

growth.

Circumstances

could

arise

that

could

prevent

the

timely

payment

of

interest

or

principal

on

U.S.

government

debt,

such

as

reaching

the

legislative

“debt

ceiling.”

Such

Notes

to

Consolidated

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

40

non-payment

would

result

in

substantial

negative

consequences

for

the

U.S.

economy

and

the

global

financial

system.

If

U.S.

relations

with

certain

countries

deteriorate,

it

could

adversely

affect

issuers

that

rely

on

the

United

States

for

trade.

The

United

States

has

also

experienced

increased

internal

unrest

and

discord.

If

these

trends

were

to

continue,

they

may

have

an

adverse

impact

on

the

U.S.

economy

and

the

issuers

in

which

the

Fund

invests.

Significant

Shareholder

Redemption

Risk:

Certain

shareholders

may

own

or

manage

a

substantial

amount

of

fund

shares

and/or

hold

their

fund

investments

for

a

limited

period

of

time.

Large

redemptions

of

fund

shares

by

these

shareholders

may

force

a

fund

to

sell

portfolio

securities,

which

may

negatively

impact

the

fund’s

NAV,

increase

the

fund’s

brokerage

costs,

and/or

accelerate

the

realization

of

taxable

income/gains

and

cause

the

fund

to

make

additional

taxable

distributions

to

shareholders.

LIBOR

Transition

Risk:

The

Fund

may

be

exposed

to

financial

instruments

that

are

tied

to

the

London

Interbank

Offered

Rate

(“LIBOR”)

to

determine

payment

obligations,

financing

terms,

hedging

strategies

or

investment

value.

The

United

Kingdom’s

Financial

Conduct

Authority,

which

regulates

LIBOR,

announced

that

a

majority

of

USD

LIBOR

settings

will

no

longer

be

published

after

June

30,

2023.

All

other

LIBOR

settings

and

certain

other

interbank

offered

rates

ceased

to

be

published

after

December

31,

2021.

SOFR

has

been

used

increasingly

on

a

voluntary

basis

in

new

instruments

and

transactions.

The

Federal

Reserve

Board

adopted

regulations

that

provide

a

fallback

mechanism

by

identifying

benchmark

rates

based

on

SOFR

that

will

replace

LIBOR

in

certain

financial

contracts

after

June

30,

2023.

The

ultimate

effect

of

the

LIBOR

transition

process

on

the

Fund

is

uncertain.

11.

CAPITAL

SHARE

TRANSACTIONS 

Transactions

in

capital

shares

for

each

class

were

as

follows:

12.

SUBSEQUENT

EVENTS 

Management

has

evaluated

the

impact

of

all

subsequent

events

on

the

Fund

through

the

date

the

consolidated

financial

statements

were

issued

and

has

determined

that

there

were

no

subsequent

events

requiring

adjustment

or

additional

disclosure

in

the

consolidated

financial

statements.

Six

Months

Ended

06/30/23

Year

Ended

12/31/22

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

BlackRock

Inflation

Protected

Bond

Portfolio

Institutional

Shares

sold

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

20,833,666‌

$

207,283,529‌

65,664,415‌

$

716,001,119‌

Shares

issued

in

reinvestment

of

distributions

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

2,508,075‌

24,953,642‌

12,212,200‌

131,098,269‌

Shares

redeemed

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

(37,031,770‌)

(368,445,850‌)

(98,619,715‌)

(1,041,431,906‌)

(13,690,029‌)

$

(136,208,679‌)

(20,743,100‌)

$

(194,332,518‌)

Investor

A

Shares

sold

and

automatic

conversion

of

shares

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

3,942,249‌

$

38,104,500‌

28,759,645‌

$

293,782,459‌

Shares

issued

in

reinvestment

of

distributions

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

726,672‌

7,026,038‌

3,005,402‌

31,298,505‌

Shares

redeemed

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

(8,823,687‌)

(85,219,636‌)

(26,797,548‌)

(271,876,415‌)

(4,154,766‌)

$

(40,089,098‌)

4,967,499‌

$

53,204,549‌

Investor

C

Shares

sold

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

289,963‌

$

2,680,252‌

1,780,946‌

$

18,004,199‌

Shares

issued

in

reinvestment

of

distributions

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

57,760‌

532,684‌

302,181‌

3,012,011‌

Shares

redeemed

and

automatic

conversion

of

shares

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

(974,995‌)

(9,004,101‌)

(2,194,078‌)

(21,251,507‌)

(627,272‌)

$

(5,791,165‌)

(110,951‌)

$

(235,297‌)

Class

K

Shares

sold

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

11,391,464‌

$

111,470,809‌

35,751,337‌

$

378,488,468‌

Shares

issued

in

reinvestment

of

distributions

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

1,169,419‌

11,458,430‌

4,711,340‌

49,711,414‌

Shares

redeemed

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

(18,996,676‌)

(186,411,960‌)

(31,558,340‌)

(329,990,262‌)

(6,435,793‌)

$

(63,482,721‌)

8,904,337‌

$

98,209,620‌

(24,907,860‌)

$

(245,571,663‌)

(6,982,215‌)

$

(43,153,646‌)

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

41

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

The

Board

of

Trustees

(the

“Board,”

the

members

of

which

are

referred

to

as

“Board

Members”)

of

BlackRock

Funds

V

(the

“Trust”)

met

on

May

4,

2023

(the

“May

Meeting”)

and

June

1-2,

2023

(the

“June

Meeting”)

to

consider

the

approval

to

continue

the

investment

advisory

agreement

(the

“Advisory

Agreement”)

between

the

Trust,

on

behalf

of

BlackRock

Inflation

Protected

Bond

Portfolio

(the

“Fund”)

and

BlackRock

Advisors,

LLC

(the

“Manager”),

the

Fund’s

investment

adviser.

The

Board

also

considered

the

approval

to

continue

the

sub-advisory

agreements

(the

“Sub-Advisory

Agreements”)

between

(1)

the

Manager

and

BlackRock

International

Limited

(“BIL”),

with

respect

to

the

Fund

and

(2)

BlackRock

(Singapore)

Limited

(“BRS”

and

together

with

BIL,

the

“Sub-Advisors”),

with

respect

to

the

Fund.

The

Manager

and

the

Sub-Advisors

are

referred

to

herein

as

“BlackRock.”

The

Advisory

Agreement

and

the

Sub-Advisory

Agreements

are

referred

to

herein

as

the

“Agreements.”

The

Approval

Process

Consistent

with

the

requirements

of

the

Investment

Company

Act

of

1940

(the

“1940

Act”),

the

Board

considers

the

approval

of

the

continuation

of

the

Agreements

for

the

Fund

on

an

annual

basis.

The

Board

members

who

are

not

“interested

persons”

of

the

Trust,

as

defined

in

the

1940

Act,

are

considered

independent

Board

members

(the

“Independent

Board

Members”).

The

Board’s

consideration

entailed

a

year-long

deliberative

process

during

which

the

Board

and

its

committees

assessed

BlackRock’s

various

services

to

the

Fund,

including

through

the

review

of

written

materials

and

oral

presentations,

and

the

review

of

additional

information

provided

in

response

to

requests

from

the

Independent

Board

Members.

The

Board

had

four

quarterly

meetings

per

year,

each

of

which

extended

over

a

two-day

period,

as

well

as

additional

ad

hoc

meetings

and

executive

sessions

throughout

the

year,

as

needed.

The

committees

of

the

Board

similarly

met

throughout

the

year.

The

Board

also

had

an

additional

one-day

meeting

to

consider

specific

information

regarding

the

renewal

of

the

Agreements.

In

considering

the

renewal

of

the

Agreements,

the

Board

assessed,

among

other

things,

the

nature,

extent

and

quality

of

the

services

provided

to

the

Fund

by

BlackRock,

BlackRock’s

personnel

and

affiliates,

including

(as

applicable):

investment

management

services;

accounting

oversight;

administrative

and

shareholder

services;

oversight

of

the

Fund’s

service

providers;

risk

management

and

oversight;

and

legal,

regulatory

and

compliance

services.

Throughout

the

year,

including

during

the

contract

renewal

process,

the

Independent

Board

Members

were

advised

by

independent

legal

counsel,

and

met

with

independent

legal

counsel

in

various

executive

sessions

outside

of

the

presence

of

BlackRock’s

management.

During

the

year,

the

Board,

acting

directly

and

through

its

committees,

considered

information

that

was

relevant

to

its

annual

consideration

of

the

renewal

of

the

Agreements,

including

the

services

and

support

provided

by

BlackRock

to

the

Fund

and

its

shareholders.

BlackRock

also

furnished

additional

information

to

the

Board

in

response

to

specific

questions

from

the

Board.

Among

the

matters

the

Board

considered

were:

(a)

investment

performance

for

one-year,

three-year,

five-year,

and/or

since

inception

periods,

as

applicable,

against

peer

funds,

relevant

benchmarks,

and

other

performance

metrics,

as

applicable,

as

well

as

BlackRock

senior

management’s

and

portfolio

managers’

analyses

of

the

reasons

for

any

outperformance

or

underperformance

relative

to

its

peers,

benchmarks,

and

other

performance

metrics,

as

applicable;

(b)

fees,

including

advisory,

administration,

if

applicable,

and

other

amounts

paid

to

BlackRock

and

its

affiliates

by

the

Fund

for

services;

(c)

Fund

operating

expenses

and

how

BlackRock

allocates

expenses

to

the

Fund;

(d)

the

resources

devoted

to,

risk

oversight

of,

and

compliance

reports

relating

to,

implementation

of

the

Fund’s

investment

objective,

policies

and

restrictions,

and

meeting

regulatory

requirements;

(e)

BlackRock’s

and

the

Fund’s

adherence

to

applicable

compliance

policies

and

procedures;

(f)

the

nature,

character

and

scope

of

non-investment

management

services

provided

by

BlackRock

and

its

affiliates

and

the

estimated

cost

of

such

services,

as

applicable;

(g)

BlackRock’s

and

other

service

providers’

internal

controls

and

risk

and

compliance

oversight

mechanisms;

(h)

BlackRock’s

implementation

of

the

proxy

voting

policies

approved

by

the

Board;

(i)

execution

quality

of

portfolio

transactions;

(j)

BlackRock’s

implementation

of

the

Fund’s

valuation

and

liquidity

procedures;

(k)

an

analysis

of

management

fees

paid

to

BlackRock

for

products

with

similar

investment

mandates

across

the

open-end

fund,

exchange-traded

fund

(“ETF”),

closed-end

fund,

sub-advised

mutual

fund,

separately

managed

account,

collective

investment

trust,

and

institutional

separate

account

product

channels,

as

applicable,

and

the

similarities

and

differences

between

these

products

and

the

services

provided

as

compared

to

the

Fund;

(l)

BlackRock’s

compensation

methodology

for

its

investment

professionals

and

the

incentives

and

accountability

it

creates,

along

with

investment

professionals’

investments

in

the

fund(s)

they

manage;

and

(m)

periodic

updates

on

BlackRock’s

business.

Prior

to

and

in

preparation

for

the

May

Meeting,

the

Board

received

and

reviewed

materials

specifically

relating

to

the

renewal

of

the

Agreements.

The

Independent

Board

Members

are

continuously

engaged

in

a

process

with

their

independent

legal

counsel

and

BlackRock

to

review

the

nature

and

scope

of

the

information

provided

to

the

Board

to

better

assist

its

deliberations.

The

materials

provided

in

connection

with

the

May

Meeting

included,

among

other

things:

(a)

information

independently

compiled

and

prepared

by

Broadridge

Financial

Solutions,

Inc.

(“Broadridge”),

based

on

either

a

Lipper

classification

or

Morningstar

category,

regarding

the

Fund’s

fees

and

expenses

as

compared

with

a

peer

group

of

funds

as

determined

by

Broadridge

(“Expense

Peers”)

and

the

investment

performance

of

the

Fund

as

compared

with

a

peer

group

of

funds

(“Performance

Peers”);

(b)

information

on

the

composition

of

the

Expense

Peers

and

Performance

Peers

and

a

description

of

Broadridge’s

methodology;

(c)

information

on

the

estimated

profits

realized

by

BlackRock

and

its

affiliates

pursuant

to

the

Agreements

and

a

discussion

of

fall-out

benefits

to

BlackRock

and

its

affiliates;

(d)

a

general

analysis

provided

by

BlackRock

concerning

investment

management

fees

received

in

connection

with

other

types

of

investment

products,

such

as

institutional

accounts,

sub-advised

mutual

funds,

ETFs,

closed-end

funds,

open-end

funds,

and

separately

managed

accounts,

under

similar

investment

mandates,

as

well

as

the

performance

of

such

other

products,

as

applicable;

(e)

a

review

of

non-management

fees;

(f)

the

existence,

impact

and

sharing

of

potential

economies

of

scale,

if

any,

with

the

Fund;

(g)

a

summary

of

aggregate

amounts

paid

by

the

Fund

to

BlackRock;

(h)

sales

and

redemption

data

regarding

the

Fund’s

shares;

and

(i)

various

additional

information

requested

by

the

Board

as

appropriate

regarding

BlackRock’s

and

the

Fund’s

operations.

At

the

May

Meeting,

the

Board

reviewed

materials

relating

to

its

consideration

of

the

Agreements

and

the

Independent

Board

Members

presented

BlackRock

with

questions

and

requests

for

additional

information.

BlackRock

responded

to

these

questions

and

requests

with

additional

written

information

in

advance

of

the

June

Meeting.

At

the

June

Meeting,

the

Board

concluded

its

assessment

of,

among

other

things:

(a) the

nature,

extent

and

quality

of

the

services

provided

by

BlackRock;

(b) the

investment

performance

of

the

Fund

as

compared

to

its

Performance

Peers

and

to

other

metrics,

as

applicable;

(c) the

advisory

fee

and

the

estimated

cost

of

the

services

and

estimated

profits

realized

by

BlackRock

and

its

affiliates

from

their

relationship

with

the

Fund;

(d) the

Fund’s

fees

and

expenses

compared

to

its

Expense

Peers;

(e)

the

existence

and

sharing

of

potential

economies

of

scale;

(f)

any

fall-out

benefits

to

BlackRock

and

its

affiliates

as

a

result

of

BlackRock’s

relationship

with

the

Fund;

and

(g) other

factors

deemed

relevant

by

the

Board

Members.

The

Board

also

considered

other

matters

it

deemed

important

to

the

approval

process,

such

as

other

payments

made

to

BlackRock

or

its

affiliates

relating

to

securities

lending

and

cash

management,

and

BlackRock’s

services

related

to

the

valuation

and

pricing

of

Fund

portfolio

holdings.

The

Board

noted

the

willingness

of

BlackRock’s

personnel

to

engage

in

open,

candid

discussions

with

the

Board.

The

Board

Members

evaluated

the

information

available

to

them

on

a

fund-by-fund

basis.

The

following

paragraphs

provide

more

information

about

some

of

the

primary

factors

that

were

relevant

to

the

Board’s

decision.

The

Board

Members

did

not

identify

any

particular

information,

or

any

single

factor

as

determinative,

and

each

Board

Member

may

have

attributed

different

weights

to

the

various

items

and

factors

considered.

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

42

A.

Nature,

Extent

and

Quality

of

the

Services

Provided

by

BlackRock

The

Board,

including

the

Independent

Board

Members,

reviewed

the

nature,

extent

and

quality

of

services

provided

by

BlackRock,

including

the

investment

advisory

services,

and

the

resulting

performance

of

the

Fund.

Throughout

the

year,

the

Board

compared

Fund

performance

to

the

performance

of

a

comparable

group

of

mutual

funds,

relevant

benchmarks,

and

performance

metrics,

as

applicable.

The

Board

met

with

BlackRock’s

senior

management

personnel

responsible

for

investment

activities,

including

the

senior

investment

officers.

The

Board

also

reviewed

the

materials

provided

by

the

Fund’s

portfolio

management

team

discussing

the

Fund’s

performance,

investment

strategies

and

outlook.

The

Board

considered,

among

other

factors,

with

respect

to

BlackRock:

the

experience

of

investment

personnel

generally

and

the

Fund’s

portfolio

management

team;

research

capabilities;

investments

by

portfolio

managers

in

the

funds

they

manage;

portfolio

trading

capabilities;

use

of

technology;

commitment

to

compliance;

credit

analysis

capabilities;

risk

analysis

and

oversight

capabilities;

and

the

approach

to

training

and

retaining

portfolio

managers

and

other

research,

advisory

and

management

personnel.

The

Board

also

considered

BlackRock’s

overall

risk

management

program,

including

the

continued

efforts

of

BlackRock

and

its

affiliates

to

address

cybersecurity

risks

and

the

role

of

BlackRock’s

Risk

&

Quantitative

Analysis

Group.

The

Board

engaged

in

a

review

of

BlackRock’s

compensation

structure

with

respect

to

the

Fund’s

portfolio

management

team

and

BlackRock’s

ability

to

attract

and

retain

high-quality

talent

and

create

performance

incentives.

In

addition

to

investment

advisory

services,

the

Board

considered

the

nature

and

quality

of

the

administrative

and

other

non-investment

advisory

services

provided

to

the

Fund.

BlackRock

and

its

affiliates

provide

the

Fund

with

certain

administrative,

shareholder

and

other

services

(in

addition

to

any

such

services

provided

to

the

Fund

by

third

parties)

and

officers

and

other

personnel

as

are

necessary

for

the

operations

of

the

Fund.

In

particular,

BlackRock

and

its

affiliates

provide

the

Fund

with

administrative

services

including,

among

others:

(i)

responsibility

for

disclosure

documents,

such

as

the

prospectus,

the

summary

prospectus

(as

applicable),

the

statement

of

additional

information

and

periodic

shareholder

reports;

(ii)

oversight

of

daily

accounting

and

pricing;

(iii)

responsibility

for

periodic

filings

with

regulators;

(iv)

overseeing

and

coordinating

the

activities

of

third-party

service

providers

including,

among

others,

the

Fund’s

custodian,

fund

accountant,

transfer

agent,

and

auditor;

(v)

organizing

Board

meetings

and

preparing

the

materials

for

such

Board

meetings;

(vi)

providing

legal

and

compliance

support;

(vii)

furnishing

analytical

and

other

support

to

assist

the

Board

in

its

consideration

of

strategic

issues

such

as

the

merger,

consolidation

or

repurposing

of

certain

open-end

funds;

and

(viii)

performing

or

managing

administrative

functions

necessary

for

the

operation

of

the

Fund,

such

as

tax

reporting,

expense

management,

fulfilling

regulatory

filing

requirements,

overseeing

the

Fund’s

distribution

partners,

and

shareholder

call

center

and

other

services.

The

Board

reviewed

the

structure

and

duties

of

BlackRock’s

fund

administration,

shareholder

services,

and

legal

and

compliance

departments

and

considered

BlackRock’s

policies

and

procedures

for

assuring

compliance

with

applicable

laws

and

regulations.

The

Board

considered

the

operation

of

BlackRock’s

business

continuity

plans.

The

Board

noted

that

the

engagement

of

the

Sub-Advisors

with

respect

to

the

Fund

facilitates

the

provision

of

investment

advice

and

trading

by

investment

personnel

out

of

non-U.S.

jurisdictions.

The

Board

considered

that

this

arrangement

provides

additional

flexibility

to

the

portfolio

management

team,

which

may

benefit

the

Fund

and

its

shareholders.

B.

The

Investment

Performance

of

the

Fund

and

BlackRock

The

Board,

including

the

Independent

Board

Members,

reviewed

and

considered

the

performance

history

of

the

Fund

throughout

the

year

and

at

the

May

Meeting.

In

preparation

for

the

May

Meeting,

the

Board

was

provided

with

reports

independently

prepared

by

Broadridge,

which

included

an

analysis

of

the

Fund’s

performance

as

of

December

31,

2022,

as

compared

to

its

Performance

Peers.

Broadridge

ranks

funds

in

quartiles,

ranging

from

first

to

fourth,

where

first

is

the

most

desirable

quartile

position

and

fourth

is

the

least

desirable.

In

connection

with

its

review,

the

Board

received

and

reviewed

information

regarding

the

investment

performance

of

the

Fund

as

compared

to

its

Performance

Peers

and

the

respective

Morningstar

Category

(“Morningstar

Category”).

The

Board

and

its

Performance

Oversight

Committee

regularly

review

and

meet

with

Fund

management

to

discuss

the

performance

of

the

Fund

throughout

the

year.

In

evaluating

performance,

the

Board

focused

particular

attention

on

funds

with

less

favorable

performance

records.

The

Board

also

noted

that

while

it

found

the

data

provided

by

Broadridge

generally

useful,

it

recognized

the

limitations

of

such

data,

including

in

particular,

that

notable

differences

may

exist

between

a

fund

and

its

Performance

Peers

(for

example,

the

investment

objectives

and

strategies).

Further,

the

Board

recognized

that

the

performance

data

reflects

a

snapshot

of

a

period

as

of

a

particular

date

and

that

selecting

a

different

performance

period

could

produce

significantly

different

results.

The

Board

also

acknowledged

that

long-term

performance

could

be

impacted

by

even

one

period

of

significant

outperformance

or

underperformance,

and

that

a

single

investment

theme

could

have

the

ability

to

disproportionately

affect

long-term

performance.

The

Board

noted

that

for

each

of

the

one-,

three-

and

five-year

periods

reported,

the

Fund

ranked

in

the

second

quartile

against

its

Morningstar

Category.

The

Board

noted

that

BlackRock

believes

that

the

Morningstar

Category

is

an

appropriate

performance

metric

for

the

Fund,

and

that

BlackRock

has

explained

its

rationale

for

this

belief

to

the

Board.

C.

Consideration

of

the

Advisory/Management

Fees

and

the

Estimated

Cost

of

the

Services

and

Estimated

Profits

Realized

by

BlackRock

and

its

Affiliates

from

their

Relationship

with

the

Fund

The

Board,

including

the

Independent

Board

Members,

reviewed

the

Fund’s

contractual

management

fee

rate

compared

with

those

of

its

Expense

Peers.

The

contractual

management

fee

rate

represents

a

combination

of

the

advisory

fee

and

any

administrative

fees,

before

taking

into

account

any

reimbursements

or

fee

waivers.

The

Board

also

compared

the

Fund’s

total

expense

ratio,

as

well

as

its

actual

management

fee

rate,

to

those

of

its

Expense

Peers.

The

total

expense

ratio

represents

a

fund’s

total

net

operating

expenses,

including

any

12b-1

or

non-12b-1

service

fees.

The

total

expense

ratio

gives

effect

to

any

expense

reimbursements

or

fee

waivers,

and

the

actual

management

fee

rate

gives

effect

to

any

management

fee

reimbursements

or

waivers.

The

Board

considered

that

the

fee

and

expense

information

in

the

Broadridge

report

for

the

Fund

reflected

information

for

a

specific

period

and

that

historical

asset

levels

and

expenses

may

differ

from

current

levels,

particularly

in

a

period

of

market

volatility.

The

Board

considered

the

services

provided

and

the

fees

charged

by

BlackRock

and

its

affiliates

to

other

types

of

clients

with

similar

investment

mandates,

as

applicable,

including

institutional

accounts

and

sub-advised

mutual

funds

(including

mutual

funds

sponsored

by

third

parties).

The

Board

received

and

reviewed

statements

relating

to

BlackRock’s

financial

condition.

The

Board

reviewed

BlackRock’s

profitability

methodology

and

was

also

provided

with

an

estimated

profitability

analysis

that

detailed

the

revenues

earned

and

the

expenses

incurred

by

BlackRock

for

services

provided

to

the

Fund.

The

Board

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

(continued)

43

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

reviewed

BlackRock’s

estimated

profitability

with

respect

to

the

Fund

and

other

funds

the

Board

currently

oversees

for

the

year

ended

December

31,

2022

compared

to

available

aggregate

estimated

profitability

data

provided

for

the

prior

two

years.

The

Board

reviewed

BlackRock’s

estimated

profitability

with

respect

to

certain

other

U.S.

fund

complexes

managed

by

the

Manager

and/or

its

affiliates.

The

Board

reviewed

BlackRock’s

assumptions

and

methodology

of

allocating

expenses

in

the

estimated

profitability

analysis,

noting

the

inherent

limitations

in

allocating

costs

among

various

advisory

products.

The

Board

recognized

that

profitability

may

be

affected

by

numerous

factors

including,

among

other

things,

fee

waivers

and

expense

reimbursements

by

the

Manager,

the

types

of

funds

managed,

precision

of

expense

allocations

and

business

mix.

The

Board

thus

recognized

that

calculating

and

comparing

profitability

at

the

individual

fund

level

is

difficult.

The

Board

noted

that,

in

general,

individual

fund

or

product

line

profitability

of

other

advisors

is

not

publicly

available.

The

Board

reviewed

BlackRock’s

overall

operating

margin,

in

general,

compared

to

that

of

certain

other

publicly

traded

asset

management

firms.

The

Board

considered

the

differences

between

BlackRock

and

these

other

firms,

including

the

contribution

of

technology

at

BlackRock,

BlackRock’s

expense

management,

and

the

relative

product

mix.

The

Board

considered

whether

BlackRock

has

the

financial

resources

necessary

to

attract

and

retain

high

quality

investment

management

personnel

to

perform

its

obligations

under

the

Agreements

and

to

continue

to

provide

the

high

quality

of

services

that

is

expected

by

the

Board.

The

Board

further

considered

factors

including

but

not

limited

to

BlackRock’s

commitment

of

time

and

resources,

assumption

of

risk,

and

liability

profile

in

servicing

the

Fund,

including

in

contrast

to

what

is

required

of

BlackRock

with

respect

to

other

products

with

similar

investment

mandates

across

the

open-end

fund,

ETF,

closed-end

fund,

sub-advised

mutual

fund,

separately

managed

account,

collective

investment

trust,

and

institutional

separate

account

product

channels,

as

applicable.

The

Board

noted

that

the

Fund’s

contractual

management

fee

rate

ranked

in

the

first

quartile,

and

that

the

actual

management

fee

rate

and

total

expense

ratio

each

ranked

in

the

second

quartile

relative

to

the

Fund’s

Expense

Peers.

The

Board

also

noted

that

the

Fund

has

an

advisory

fee

arrangement

that

includes

breakpoints

that

adjust

the

fee

rate

downward

as

the

size

of

the

Fund

increases

above

certain

contractually

specified

levels.

The

Board

additionally

noted

that

the

breakpoints

can,

conversely,

adjust

the

advisory

fee

rate

upward

as

the

size

of

the

Fund

decreases

below

certain

contractually

specified

levels.

The

Board

further

noted

that

BlackRock

and

the

Board

have

contractually

agreed

to

a

cap

on

the

Fund’s

total

expenses

as

a

percentage

of

the

Fund’s

average

daily

net

assets

on

a

class-by-class

basis.

D.

Economies

of

Scale

The

Board,

including

the

Independent

Board

Members,

considered

the

extent

to

which

economies

of

scale

might

be

realized

as

the

assets

of

the

Fund

increase,

including

the

existence

of

fee

waivers

and/or

expense

caps,

as

applicable,

noting

that

any

contractual

fee

waivers

and

contractual

expense

caps

had

been

approved

by

the

Board.

In

its

consideration,

the

Board

further

considered

the

continuation

and/or

implementation

of

fee

waivers

and/or

expense

caps,

as

applicable.

The

Board

also

considered

the

extent

to

which

the

Fund

benefits

from

such

economies

of

scale

in

a

variety

of

ways,

and

whether

there

should

be

changes

in

the

advisory

fee

rate

or

breakpoint

structure

in

order

to

enable

the

Fund

to

more

fully

participate

in

these

economies

of

scale.

The

Board

considered

the

Fund’s

asset

levels

and

whether

the

current

fee

schedule

was

appropriate.

E.

Other

Factors

Deemed

Relevant

by

the

Board

Members

The

Board,

including

the

Independent

Board

Members,

also

took

into

account

other

ancillary

or

“fall-out”

benefits

that

BlackRock

or

its

affiliates

may

derive

from

BlackRock’s

respective

relationships

with

the

Fund,

both

tangible

and

intangible,

such

as

BlackRock’s

ability

to

leverage

its

investment

professionals

who

manage

other

portfolios

and

its

risk

management

personnel,

an

increase

in

BlackRock’s

profile

in

the

investment

advisory

community,

and

the

engagement

of

BlackRock’s

affiliates

as

service

providers

to

the

Fund,

including

for

administrative,

distribution,

securities

lending,

and

cash

management

services.

With

respect

to

securities

lending,

during

the

year

the

Board

also

considered

information

provided

by

independent

third-party

consultants

related

to

the

performance

of

each

BlackRock

affiliate

as

securities

lending

agent.

The

Board

also

considered

BlackRock’s

overall

operations

and

its

efforts

to

expand

the

scale

of,

and

improve

the

quality

of,

its

operations.

The

Board

also

noted

that,

subject

to

applicable

law,

BlackRock

may

use

and

benefit

from

third-party

research

obtained

by

soft

dollars

generated

by

certain

registered

fund

transactions

to

assist

in

managing

all

or

a

number

of

its

other

client

accounts.

In

connection

with

its

consideration

of

the

Agreements,

the

Board

also

received

information

regarding

BlackRock’s

brokerage

and

soft

dollar

practices.

The

Board

received

reports

from

BlackRock

which

included

information

on

brokerage

commissions

and

trade

execution

practices

throughout

the

year.

The

Board

noted

the

competitive

nature

of

the

open-end

fund

marketplace,

and

that

shareholders

are

able

to

redeem

their

Fund

shares

if

they

believe

that

the

Fund’s

fees

and

expenses

are

too

high

or

if

they

are

dissatisfied

with

the

performance

of

the

Fund.

Conclusion

At

the

June

Meeting,

in

a

continuation

of

the

discussions

that

occurred

during

the

May

Meeting,

and

as

a

culmination

of

the

Board’s

year-long

deliberative

process,

the

Board,

including

the

Independent

Board

Members,

unanimously

approved

the

continuation

of

the

Advisory

Agreements

between

the

Manager

and

the

Trust,

on

behalf

of

the

Fund,

for

a

one-year

term

ending

June

30,

2024,

and

the

Sub-Advisory

Agreements

between

the

Manager

and

the

Sub-Advisors,

with

respect

to

the

Fund,

for

a

one-year

term

ending

June

30,

2024.

Based

upon

its

evaluation

of

all

of

the

aforementioned

factors

in

their

totality,

as

well

as

other

information,

the

Board,

including

the

Independent

Board

Members,

was

satisfied

that

the

terms

of

the

Agreements

were

fair

and

reasonable

and

in

the

best

interest

of

the

Fund

and

its

shareholders.

In

arriving

at

its

decision

to

approve

the

Agreements,

the

Board

did

not

identify

any

single

factor

or

group

of

factors

as

all-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

advised

by

independent

legal

counsel

throughout

the

deliberative

process.

Additional

Information

2023

BlackRock

Semi-Annual

Report

to

Shareholders

44

Tailored

Shareholder

Reports

for

Mutual

Funds

and

ETFs

Effective

January

24,

2023,

the

SEC

adopted

rule

and

form

amendments

to

require

mutual

funds

and

ETFs

to

transmit

concise

and

visually

engaging

streamlined

annual

and

semiannual

reports

to

shareholders

that

highlight

key

information.

Other

information,

including

financial

statements,

will

no

longer

appear

in

a

streamlined

shareholder

report

but

must

be

available

online,

delivered

free

of

charge

upon

request,

and

filed

on

a

semiannual

basis

on

Form

N-CSR.

The

rule

and

form

amendments

have

a

compliance

date

of

July

24,

2024.

At

this

time,

management

is

evaluating

the

impact

of

these

amendments

on

the

shareholder

report

for

the

Fund.

General

Information 

Quarterly

performance,

semi-annual

and

annual

reports,

current

net

asset

value

and

other

information

regarding

the

Fund

may

be

found

on

BlackRock’s

website,

which

can

be

accessed

at

blackrock.com

.

Any

reference

to

BlackRock’s

website

in

this

report

is

intended

to

allow

investors

public

access

to

information

regarding

the

Fund

and

does

not,

and

is

not

intended

to,

incorporate

BlackRock’s

website

in

this

report.

Householding

The

Fund

will

mail

only

one

copy

of

shareholder

documents,

including

prospectuses,

annual

and

semi-annual

reports,

Rule

30e-3

notices

and

proxy

statements,

to

shareholders

with

multiple

accounts

at

the

same

address.

This

practice

is

commonly

called

“householding”

and

is

intended

to

reduce

expenses

and

eliminate

duplicate

mailings

of

shareholder

documents.

Mailings

of

your

shareholder

documents

may

be

householded

indefinitely

unless

you

instruct

us

otherwise.

If

you

do

not

want

the

mailing

of

these

documents

to

be

combined

with

those

for

other

members

of

your

household,

please

call

the

Fund at

(800)

441-7762.

Availability

of

Quarterly

Schedule

of

Investments 

The

Fund

files

its

complete

schedule

of

portfolio

holdings

with

the

SEC

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

Fund’s

Form

N-PORT is

available

on

the

SEC’s

website

at

sec.gov

.

Additionally,

the

Fund

makes

its

portfolio

holdings

for

the

first

and

third

quarters

of

each

fiscal

year

available

at

blackrock.com/fundreports

.

Availability

of

Proxy

Voting

Policies,

Procedures and

Voting

Records

A

description

of

the

policies

and

procedures

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

information

about

how

the

Fund

voted

proxies

relating

to

securities

held

in

the

Fund's

portfolio

during

the

most

recent

12-month

period

ended

June

30 is

available

without

charge,

upon

request (1)

by

calling

(800)

441-7762

;

(2)

on

the

BlackRock

website

at

blackrock.com

;

and

(3)

on

the

SEC’s

website

at

sec.gov

.

BlackRock’s

Mutual

Fund

Family

BlackRock

offers

a

diverse

lineup

of

open-end

mutual

funds

crossing

all

investment

styles

and

managed

by

experts

in

equity,

fixed-income

and

tax-exempt

investing.

Visit

blackrock.com

for

more

information.

Shareholder

Privileges

Account

Information

Call

us

at

(800) 

441-7762

from

8:00

AM

to

6:00

PM

ET

on

any

business

day

to

get

information

about

your

account

balances,

recent

transactions

and

share

prices.

You

can

also

visit

blackrock.com

for

more

information.

Automatic

Investment

Plans

Investor

class

shareholders

who

want

to

invest

regularly

can

arrange

to

have

$50

or

more

automatically

deducted

from

their

checking

or

savings

account

and

invested

in

any

of

the

BlackRock

funds.

Systematic

Withdrawal

Plans

Investor

class

shareholders

can

establish

a

systematic

withdrawal

plan

and

receive

periodic

payments

of

$50

or

more

from

their

BlackRock

funds,

as

long

as

their

account

balance

is

at

least

$10,000.

Retirement

Plans

Shareholders

may

make

investments

in

conjunction

with

Traditional,

Rollover,

Roth,

Coverdell,

Simple

IRAs,

SEP

IRAs

and

403(b)

Plans.

Additional

Information

(continued)

45

Additional

Information

BlackRock

Privacy

Principles

BlackRock

is

committed

to

maintaining

the

privacy

of

its

current

and

former

fund

investors

and

individual

clients

(collectively,

“Clients”)

and

to

safeguarding

their

non-public

personal

information.

The

following

information

is

provided

to

help

you

understand

what

personal

information

BlackRock

collects,

how

we

protect

that

information

and

why

in

certain

cases

we

share

such

information

with

select

parties.

If

you

are

located

in

a

jurisdiction

where

specific

laws,

rules

or

regulations

require

BlackRock

to

provide

you

with

additional

or

different

privacy-related

rights

beyond

what

is

set

forth

below,

then

BlackRock

will

comply

with

those

specific

laws,

rules

or

regulations.

BlackRock

obtains

or

verifies

personal

non-public

information

from

and

about

you

from

different

sources,

including

the

following:

(i)

information

we

receive

from

you

or,

if

applicable,

your

financial

intermediary,

on

applications,

forms

or

other

documents;

(ii)

information

about

your

transactions

with

us,

our

affiliates,

or

others;

(iii)

information

we

receive

from

a

consumer

reporting

agency;

and

(iv)

from

visits

to

our

websites.

BlackRock

does

not

sell

or

disclose

to

non-affiliated

third

parties

any

non-public

personal

information

about

its

Clients,

except

as

permitted

by

law

or

as

is

necessary

to

respond

to

regulatory

requests

or

to

service

Client

accounts.

These

non-affiliated

third

parties

are

required

to

protect

the

confidentiality

and

security

of

this

information

and

to

use

it

only

for

its

intended

purpose.

We

may

share

information

with

our

affiliates

to

service

your

account

or

to

provide

you

with

information

about

other

BlackRock

products

or

services

that

may

be

of

interest

to

you.

In

addition,

BlackRock

restricts

access

to

non-public

personal

information

about

its

Clients

to

those

BlackRock

employees

with

a

legitimate

business

need

for

the

information.

BlackRock

maintains

physical,

electronic

and

procedural

safeguards

that

are

designed

to

protect

the

non-public

personal

information

of

its

Clients,

including

procedures

relating

to

the

proper

storage

and

disposal

of

such

information.

Fund

and

Service

Providers

Investment

Adviser

and

Administrator

BlackRock

Advisors,

LLC

Wilmington,

DE

19809

Sub-Advisers

BlackRock

International

Limited

Edinburgh,

EH3

8BL

United

Kingdom

BlackRock

(Singapore)

Limited

079912

Singapore

Accounting

Agent

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Transfer

Agent

BNY

Mellon

Investment

Servicing

(US)

Inc.

Wilmington,

DE

19809

Custodian

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Independent

Registered

Public

Accounting

Firm

Deloitte

&

Touche

LLP

Boston,

MA

02116

Distributor

BlackRock

Investments,

LLC

New

York,

NY

10001

Legal

Counsel

Willkie

Farr

&

Gallagher

LLP

New

York,

NY

10019

Address

of

the

Trust

100

Bellevue

Parkway

Wilmington,

DE

19809

Glossary

of

Terms

Used

in

this

Report

2023

BlackRock

Semi-Annual

Report

to

Shareholders

46

Currency

Abbreviation

AUD

Australian

Dollar

CAD

Canadian

Dollar

EUR

Euro

GBP

British

Pound

JPY

Japanese

Yen

USD

United

States

Dollar

Portfolio

Abbreviation

BA

Canadian

Bankers

Acceptances

CSMC

Credit

Suisse

Mortgage

Capital

EFFR

Effective

Federal

Funds

Rate

ETF

Exchange-Traded

Fund

EURIBOR

Euro

Interbank

Offered

Rate

LIBOR

London

Interbank

Offered

Rate

OTC

Over-the-counter

PIK

Payment-In-Kind

REPO_CORRA

Canadian

Overnight

Repo

Rate

SONIA

Sterling

Overnight

Interbank

Average

Rate

SOFR

Secured

Overnight

Financing

Rate

TBA

To-be-announced

TONAR

Tokyo

Overnight

Average

Rate

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blackrock.com

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800-441-7762

This

report

is

intended

for

current

holders.

It

is

not

authorized

for

use

as

an

offer

of

sale

or

a

solicitation

of

an

offer

to

buy

shares

of

the

Fund

unless

preceded

or

accompanied

by

the

Fund’s

current

prospectus.

Past

performance

results

shown

in

this

report

should

not

be

considered

a

representation

of

future

performance.

Investment

returns

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Statements

and

other

information

herein

are

as

dated

and

are

subject

to

change.

IPB-6/23-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(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

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

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

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 –

Disclosure of Securities Lending Activities for Closed-End Management Investment

   Companies

– Not Applicable                  

Item 13 – Exhibits attached hereto

              (a)(1) – Code of Ethics – Not Applicable to this semi-annual report

              (a)(2) – Section 302 Certifications are attached

section302

(a)(3)

Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(4)

Change in Registrant’s independent public accountant – Not Applicable

(b) – Section 906 Certifications are attached

section906

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

BlackRock Funds V

By:     /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Funds V

Date: August 22, 2023

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: August 22, 2023

By:     /s/ Trent Walker

          Trent Walker

Chief Financial Officer (principal financial officer) of

BlackRock Funds V

Date: August 22, 2023