BlackRock Funds VI 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: 811-23344 and 811-23343

Name of Fund: BlackRock Funds VI

BlackRock Advantage CoreAlpha Bond Fund (Formerly BlackRock CoreAlpha Bond Fund)

Master Investment Portfolio II

Advantage CoreAlpha Bond Master Portfolio (Formerly CoreAlpha Bond Master Portfolio)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds VI and Master Investment Portfolio II, 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 12/31/2022

Date of reporting period: 06/30/2022

Item 1 – Report to Stockholders

(a) The Report to Shareholders is attached herewith.

JUNE 30, 2022

2022 Semi-Annual Report

(Unaudited)

BlackRock Funds VI

· BlackRock Advantage CoreAlpha Bond Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee  

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of June 30, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets. The U.S. economy shrank in the first quarter of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Rapid changes in consumer spending led to supply constraints and elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell, as persistently high inflation drove investors’ expectations for higher interest rates, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were particularly steep. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as increasing inflation drove investors’ expectations for higher interest rates. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is growing faster than expected, raised interest rates three times while indicating that additional large rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and began to reduce its balance sheet. Continued high inflation and the Fed’s statements led many analysts to anticipate that interest rates have significant room to rise before peaking.

Furthermore, the horrific war in Ukraine has significantly clouded the outlook for the global economy, leading to major volatility in energy and metals markets. Sanctions on Russia, Europe’s top energy supplier, and general wartime disruption have magnified supply problems for key commodities. We believe elevated energy prices will continue to exacerbate inflationary pressure while also constraining economic growth. Combating inflation without stifling a recovery, while buffering against ongoing supply and price shocks, will be an especially challenging environment for setting effective monetary policy. Despite the likelihood of more rate increases on the horizon, we believe the Fed will err on the side of protecting employment, even at the expense of higher inflation. However, markets have been primed to expect sharp tightening, which could weigh on valuations until central banks begin to tap the brakes.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Furthermore, the energy shock and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near-term. We take the opposite view on credit, where higher spreads provide near-term opportunities, while the likelihood of a higher inflation regime leads us to take an underweight stance on credit in the long-term. We believe that investment-grade corporates, U.K. gilts, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities in a six- to twelve-month horizon.

Overall, our view is that investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of June 30, 2022
	6-Month			12-Month
U.S. large cap equities (S&P 500® Index)		(19.96)	%		(10.62)	%
U.S. small cap equities (Russell 2000® Index)		(23.43)			(25.20)
International equities (MSCI Europe, Australasia, Far East Index)		(19.57)			(17.77)
Emerging market equities (MSCI Emerging Markets Index)		(17.63)			(25.28)
3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)		0.15			0.18
U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)		(11.34)			(10.94)
U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index)		(10.35)			(10.29)
Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)		(8.98)			(8.57)
U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)		(14.19)			(12.82)
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

2 THIS  PAGE   IS  NOT  PART  OF  YOUR  FUND  REPORT

Table of Contents

	Page
The Markets in Review		2
Semi-Annual Report:
Fund Summary		4
About Fund Performance		6
Disclosure of Expenses		6
Derivative Financial Instruments		7
Fund Financial Statements:
Fund Statement of Assets and Liabilities		8
Fund Statement of Operations		10
Fund Statements of Changes in Net Assets		11
Fund Financial Highlights		12
Fund Notes to Financial Statements		16
Master Portfolio Information		20
Master Portfolio Financial Statements:
Master Portfolio Schedule of Investments		21
Master Portfolio Statement of Assets and Liabilities		42
Master Portfolio Statement of Operations		43
Master Portfolio Statements of Changes in Net Assets		44
Master Portfolio Financial Highlights		45
Master Portfolio Notes to Financial Statements		46
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreements		56
Additional Information		60
Glossary of Terms Used in this Report		62

3

Fund Summary    as of June 30, 2022   BlackRock Advantage CoreAlpha Bond Fund

Investment Objective

BlackRock Advantage CoreAlpha Bond Fund’s (the “Fund”) investment objective is to seek to provide a combination of income and capital growth.

Portfolio Management Commentary

How did the Fund perform?

For the six-month period ended June 30, 2022, the Fund underperformed the benchmark, the Bloomberg U.S. Aggregate Bond Index (the “Index”).

The Fund invests all of its assets in the Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio II.

What factors influenced performance?

Asset allocation was the largest detractor from performance over the period due to positioning in high yield corporate bonds, securitized assets and investment grade corporate credit. Global interest rate strategies also detracted from performance due to the duration-neutral cross-market strategy that trades long/short positions across the United States, Europe, the U.K., Japan, Australia and Canada, as well as the Fund’s global interest rate swap strategy that trades long/short positions across developed and emerging markets. Credit security selection also hurt performance due to overweights in technology and insurance and an underweight to banking.

Although credit security selection detracted from performance overall, certain sectors contributed positively to performance. Most notably, underweights to communications, transportation, and brokerages/asset managers/exchanges aided return.

The Master Portfolio held derivatives during the period. Futures are commonly used for strategic day-to-day interest rate hedging, tactically expressing relative value curve strategies, and duration hedging. Interest rate swaps negatively impacted performance as part of the Fund’s global rates strategies.

The Fund’s cash position was approximately 8% at period end. Cash holdings did not have a material impact on the Fund’s return for the period.

Describe recent portfolio activity.

Entering 2022, the Fund remained constructive on credit fundamentals as default rates remained well below expansion average. That said, with the Fed expected to accelerate its tightening of monetary policy given persistent inflation the Fund tactically hedged its credit overweights both within investment grade and high yield corporate bonds and positioned its overall risk profile more neutrally. The Fund added back risk in February 2022 as credit spreads widened in anticipation of seven Fed rate hikes.

Entering the second quarter, the ongoing war in Ukraine, high energy prices and the Fed’s pivot on monetary policy led to heightened uncertainty around inflation and growth along with elevated volatility. The Fund’s models began to pick up a growth shock due to China’s COVID-driven lockdowns and weaker purchasing manager index readouts. With an elevated probability of recession based on incoming hard data and several leading indicators, the Fund pared back credit risk. The Fund was neutrally positioned with respect to mortgage-backed securities while awaiting more clarity on the Fed’s balance sheet run-off plans and paused on adding securitized asset risk on the view that persistent inflation will eventually take its toll on consumers. Finally, the Fund was long inflation via 10-year inflation swaps.

Describe portfolio positioning at period end.

Entering the second half of 2022, the Fund was positioned for a period of elevated macro and market volatility as the Fed remains focused on containing inflation despite the associated economic costs. The Fund had reduced credit risk and was underweight both investment grade and high yield corporate bonds, as signals had taken a more bearish turn with incoming growth data decelerating and a deterioration in risk sentiment. The Fund was underweight the front end of the yield curve on the view that the market was underestimating the degree to which inflation has become more broad-based and persistent.

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

4 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Fund Summary    as of June 30, 2022 (continued)   BlackRock Advantage CoreAlpha Bond Fund

Performance

										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		2.94	%		2.93	%		(11.68	)%		(12.18	)%		N/A			0.95	%		N/A			1.62	%		N/A
Investor A		2.58			2.57			(11.88	)		(12.48	)		(15.98	)%		0.68			(0.14	)%		1.31			0.90	%
Investor C		1.95			1.94			(12.21	)		(13.14	)		(14.00	)		(0.08	)		(0.08	)		0.71			0.71
Class K		2.98			2.92			(11.65	)		(12.12	)		N/A			1.03			N/A			1.69			N/A
Bloomberg U.S. Aggregate Bond Index(c)	��	—			—			(10.35	)		(10.29	)		N/A			0.88			N/A			1.54			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, and how performance was calculated for certain share classes.

^(b)  The Fund invests all of its assets in the Master Portfolio. The Master Portfolio invests, under normal circumstances, at least 80% the value of the Master Portfolio’s net assets, plus the amount of any borrowing for investment purposes, in bonds. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock CoreAlpha Bond Fund (the “Predecessor Fund”), a series of BlackRock Funds III, through a tax-free reorganization (the “Board Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Board Reorganization.

^(c)  A broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market.

N/A — Not applicable as the 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.

Expense Example

	Actual							Hypothetical 5% Return
		Beginning Account Value (01/01/22)		Ending Account Value (06/30/22)		Expenses Paid During the Period	(a)		Beginning Account Value (01/01/22)		Ending Account Value (06/30/22)		Expenses Paid During the Period	(a)	Annualized Expense Ratio
Institutional	$	1,000.00	$	883.20	$	1.35		$	1,000.00	$	1,023.36	$	1.45		0.29	%
Investor A		1,000.00		881.20		2.52			1,000.00		1,022.12		2.71		0.54
Investor C		1,000.00		877.90		6.01			1,000.00		1,018.40		6.46		1.29
Class K		1,000.00		883.50		1.12			1,000.00		1,023.60		1.20		0.24

^(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). Because the Fund invests all of its assets in the Master Portfolio, the expense example reflects the net expenses of both the Fund and the Master Portfolio in which it invests.

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

FUND  SUMMARY 5

About Fund Performance   BlackRock Advantage CoreAlpha Bond Fund

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

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.

Prior to March 28, 2016 for Class K Shares, the performance of the class is based on the returns of a series of Master Investment Portfolio, adjusted to reflect the estimated annual fund fees and operating expenses of the respective share class of the Predecessor Fund.

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 net asset value (“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 “Administrator”), the Fund’s administrator, 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 Administrator 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 Administrator is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See the Notes to 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

Shareholders of the Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including 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 Fund and share class under the heading entitled “Expenses Paid During the Period.”

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

6 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Derivative Financial Instruments   BlackRock Advantage CoreAlpha Bond Fund

The Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”) may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Master Portfolio’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 Master Portfolio can realize on an investment and/or may result in lower distributions paid to shareholders. The Master Portfolio’s investments in these instruments, if any, are discussed in detail in the Master Portfolio Notes to Financial Statements.

DERIVATIVE  FINANCIAL  INSTRUMENTS 7

Statement of Assets and Liabilities (unaudited)

June 30, 2022

	BlackRock Advantange CoreAlpha Bond Fund
ASSETS
Investments, at value — Master Portfolio		$1,074,907,752
Receivables:
Capital shares sold		107,737
From the Administrator		7,875
Withdrawals from the Master Portfolio		3,422,466
Total assets		1,078,445,830
LIABILITIES
Payables:
Administration fees		91,863
Capital shares redeemed		3,530,202
Income dividend distributions		98,235
Other accrued expenses		92,852
Professional fees		6,353
Service and distribution fees		72,945
Total liabilities		3,892,450
NET ASSETS		$ 1,074,553,380
NET ASSETS CONSIST OF
Paid-in capital		$ 1,234,823,417
Accumulated loss		(160,270,037	)
NET ASSETS		$ 1,074,553,380

8 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Statement of Assets and Liabilities (unaudited) (continued)

June 30, 2022

	BlackRock Advantange CoreAlpha Bond Fund
NET ASSET VALUE
Institutional
Net assets	$	626,626,627
Shares outstanding		69,482,747
Net asset value	$	9.02
Shares authorized		Unlimited
Par value		No par value
Investor A
Net assets	$	357,135,690
Shares outstanding		39,594,104
Net asset value	$	9.02
Shares authorized		Unlimited
Par value		No par value
Investor C
Net assets	$	443,425
Shares outstanding		49,142
Net asset value	$	9.02
Shares authorized		Unlimited
Par value		No par value
Class K
Net assets	$	90,347,638
Shares outstanding		10,010,310
Net asset value	$	9.03
Shares authorized		Unlimited
Par value		No par value

See notes to financial statements.

FUND  FINANCIAL  STATEMENTS 9

Statement of Operations (unaudited)

Six Months Ended June 30, 2022

	BlackRock Advantange CoreAlpha Bond Fund
INVESTMENT INCOME
Net investment income allocated from the Master Portfolio:
Dividends — affiliated	$	103,433
Interest — unaffliated		15,358,028
Securities lending income — affiliated — net		57,232
Expenses		(1,482,604	)
Fees waived		40,938
Total investment income		14,077,027
FUND EXPENSES
Service and distribution — class specific		494,474
Administration — class specific		305,500
Miscellaneous		14,289
Total expenses		814,263
Less:
Fees waived and/or reimbursed by the Administrator		(29,301	)
Total expenses after fees waived and/or reimbursed		784,962
Net investment income		13,292,065
REALIZED AND UNREALIZED GAIN (LOSS) ALLOCATED FROM THE MASTER PORTFOLIO
Net realized gain (loss) from:
Investments — unaffiliated		(35,615,651	)
Investments — affiliated		(33,900	)
Forward foreign currency exchange contracts		184,701
Foreign currency transactions		(530,770	)
Futures contracts		(34,957,551	)
Swaps		(1,339,225	)
		(72,292,396	)
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		(101,883,074	)
Investments — affiliated		(10,958	)
Forward foreign currency exchange contracts		68,139
Foreign currency translations		(38,655	)
Futures contracts		2,929,734
Swaps		208,799
		(98,726,015	)
Net realized and unrealized loss		(171,018,411	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(157,726,346	)

See notes to financial statements.

10 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Statements of Changes in Net Assets

	BlackRock Advantage CoreAlpha Bond Fund
	Six Months Ended 06/30/22 (unaudited)			Year Ended 12/31/21
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	13,292,065		$	28,473,133
Net realized loss		(72,292,396	)		(7,058,936	)
Net change in unrealized appreciation (depreciation)		(98,726,015	)		(55,753,616	)
Net decrease in net assets resulting from operations		(157,726,346	)		(34,339,419	)
DISTRIBUTIONS TO SHAREHOLDERS(a)
From net investment income and net realized gain
Institutional		(7,577,103	)		(17,757,680	)
Investor A		(3,571,246	)		(7,897,103	)
Investor C		(3,482	)		(9,879	)
Class K		(1,005,764	)		(1,397,399	)
Return of capital
Institutional		—			(4,818,445	)
Investor A		—			(2,445,692	)
Investor C		—			(6,175	)
Class K		—			(364,559	)
Decrease in net assets resulting from distributions to shareholders		(12,157,595	)		(34,696,932	)
CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions		(113,667,266	)		(248,815,746	)
NET ASSETS
Total decrease in net assets		(283,551,207	)		(317,852,097	)
Beginning of period		1,358,104,587			1,675,956,684
End of period	$	1,074,553,380		$	1,358,104,587

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

See notes to financial statements.

FUND  FINANCIAL  STATEMENTS 11

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Advantage CoreAlpha Bond Fund
	Institutional
	Six Months Ended 06/30/22 (unaudited)				Year Ended December 31,
					2021			2020			2019			2018			2017
Net asset value, beginning of period		$	10.32		$	10.79		$	10.54		$	10.02		$	10.35		$	10.22
Net investment income(a)			0.11			0.21			0.26			0.32			0.31			0.25
Net realized and unrealized gain (loss)			(1.31	)		(0.42	)		0.67			0.64			(0.34	)		0.17
Net increase (decrease) from investment operations			(1.20	)		(0.21	)		0.93			0.96			(0.03	)		0.42
Distributions(b)
From net investment income			(0.10	)		(0.15	)		(0.56	)		(0.32	)		(0.30	)		(0.25	)
From net realized gain			—			(0.06	)		(0.12	)		(0.12	)		(0.00	)(c)		—
Return of capital			—			(0.05	)		—			—			—			(0.04	)
Total distributions			(0.10	)		(0.26	)		(0.68	)		(0.44	)		(0.30	)		(0.29	)
Net asset value, end of period		$	9.02		$	10.32		$	10.79		$	10.54		$	10.02		$	10.35
Total Return(d)
Based on net asset value			(11.68	)%(e)		(1.98	)%		8.88	%		9.62	%		(0.18	)%		4.19	%
Ratios to Average Net Assets(f)(g)
Total expenses			0.29	%(h)		0.30	%		0.28	%		0.29	%		0.37	%(i)		0.35	%
Total expenses after fees waived and/or reimbursed			0.29	%(h)		0.30	%		0.28	%		0.28	%		0.35	%(i)		0.34	%
Net investment income			2.25	%(h)		2.00	%		2.42	%		3.02	%		3.14	%		2.44	%
Supplemental Data
Net assets, end of period (000)		$	626,627		$	839,388		$	1,103,299		$	1,121,106		$	791,197		$	496,618
Portfolio turnover rate of the Master Portfolio(j)			100	%		219	%		410	%		263	%		331	%		515	%

^(a)  Based on average shares outstanding.

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

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

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

^(e)  Aggregate total return.

^(f)  Includes the Fund’s share of the Master Portfolio’s allocated net expenses and/or net investment income.

^(g)  Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(h)  Annualized.

⁽ⁱ⁾  Includes reorganization and board realignment and consolidation costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.33% and 0.31%, respectively.

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

	Six Months Ended 06/30/22 (unaudited)			Year Ended December 31,
				2021			2020			2019			2018			2017
Portfolio turnover rate (excluding MDRs)		54	%		123	%		261	%		166	%		189	%		322	%

See notes to financial statements.

12 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)

	BlackRock Advantage CoreAlpha Bond Fund (continued)
	Investor A
	Six Months Ended 06/30/22 (unaudited)				Year Ended December 31,
					2021			2020			2019			2018			2017
Net asset value, beginning of period		$	10.32		$	10.79		$	10.54		$	10.02		$	10.35		$	10.22
Net investment income(a)			0.09			0.18			0.24			0.29			0.30			0.20
Net realized and unrealized gain (loss)			(1.30	)		(0.42	)		0.66			0.64			(0.36	)		0.19
Net increase (decrease) from investment operations			(1.21	)		(0.24	)		0.90			0.93			(0.06	)		0.39
Distributions(b)
From net investment income			(0.09	)		(0.12	)		(0.53	)		(0.29	)		(0.27	)		(0.22	)
From net realized gain			—			(0.06	)		(0.12	)		(0.12	)		(0.00	)(c)		—
Return of capital			—			(0.05	)		—			—			—			(0.04	)
Total distributions			(0.09	)		(0.23	)		(0.65	)		(0.41	)		(0.27	)		(0.26	)
Net asset value, end of period		$	9.02		$	10.32		$	10.79		$	10.54		$	10.02		$	10.35
Total Return(d)
Based on net asset value			(11.88	)%(e)		(2.23	)%		8.61	%		9.35	%		(0.52	)%		3.83	%
Ratios to Average Net Assets(f)(g)
Total expenses			0.54	%(h)		0.55	%		0.53	%		0.54	%		0.56	%(i)		0.69	%
Total expenses after fees waived and/or reimbursed			0.54	%(h)		0.55	%		0.53	%		0.53	%		0.53	%(i)		0.69	%
Net investment income			1.99	%(h)		1.74	%		2.16	%		2.76	%		3.05	%		1.99	%
Supplemental Data
Net assets, end of period (000)		$	357,136		$	445,358		$	508,792		$	503,477		$	433,789		$	485
Portfolio turnover rate of the Master Portfolio(j)			100	%		219	%		410	%		263	%		331	%		515	%

^(a)  Based on average shares outstanding.

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

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

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

^(e)  Aggregate total return.

^(f)  Includes the Fund’s share of the Master Portfolio’s allocated net expenses and/or net investment income.

^(g)  Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(h)  Annualized.

⁽ⁱ⁾  Includes reorganization and board realignment and consolidation costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.52% and 0.49%, respectively.

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

	Six Months Ended 06/30/22 (unaudited)			Year Ended December 31,
				2021			2020			2019			2018			2017
Portfolio turnover rate (excluding MDRs)		54	%		123	%		261	%		166	%		189	%		322	%

See notes to financial statements.

FUND  FINANCIAL  HIGHLIGHTS 13

Financial Highlights (continued)

(For a share outstanding throughout each period)

	BlackRock Advantage CoreAlpha Bond Fund (continued)
	Investor C
	Six Months Ended 06/30/22 (unaudited)				Year Ended December 31,
					2021			2020			2019			2018			2017
Net asset value, beginning of period		$	10.33		$	10.80		$	10.55		$	10.02		$	10.36		$	10.23
Net investment income(a)			0.06			0.11			0.15			0.22			0.20			0.13
Net realized and unrealized gain (loss)			(1.32	)		(0.43	)		0.67			0.64			(0.35	)		0.18
Net increase (decrease) from investment operations			(1.26	)		(0.32	)		0.82			0.86			(0.15	)		0.31
Distributions(b)
From net investment income			(0.05	)		(0.04	)		(0.45	)		(0.21	)		(0.19	)		(0.15	)
From net realized gain			—			(0.06	)		(0.12	)		(0.12	)		(0.00	)(c)		—
Return of capital			—			(0.05	)		—			—			—			(0.03	)
Total distributions			(0.05	)		(0.15	)		(0.57	)		(0.33	)		(0.19	)		(0.18	)
Net asset value, end of period		$	9.02		$	10.33		$	10.80		$	10.55		$	10.02		$	10.36
Total Return(d)
Based on net asset value			(12.21	)%(e)		(2.96	)%		7.80	%		8.64	%		(1.36	)%		3.05	%
Ratios to Average Net Assets(f)(g)
Total expenses			1.29	%(h)		1.30	%		1.28	%		1.29	%		1.46	%(i)		1.44	%
Total expenses after fees waived and/or reimbursed			1.29	%(h)		1.29	%		1.28	%		1.29	%		1.44	%(i)		1.44	%
Net investment income			1.26	%(h)		1.01	%		1.32	%		2.08	%		2.02	%		1.30	%
Supplemental Data
Net assets, end of period (000)		$	443		$	865		$	1,522		$	210		$	157		$	238
Portfolio turnover rate of the Master Portfolio(j)			100	%		219	%		410	%		263	%		331	%		515	%

^(a)  Based on average shares outstanding.

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

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

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

^(e)  Aggregate total return.

^(f)  Includes the Fund’s share of the Master Portfolio’s allocated net expenses and/or net investment income.

^(g)  Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(h)  Annualized.

⁽ⁱ⁾  Includes reorganization and board realignment and consolidation costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 1.42% and 1.40%, respectively.

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

	Six Months Ended 06/30/22 (unaudited)			Year Ended December 31,
				2021			2020			2019			2018			2017
Portfolio turnover rate (excluding MDRs)		54	%		123	%		261	%		166	%		189	%		322	%

See notes to financial statements.

14 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)

	BlackRock Advantage CoreAlpha Bond Fund (continued)
	Class K
	Six Months Ended 06/30/22 (unaudited)				Year Ended December 31,
					2021			2020			2019			2018			2017
Net asset value, beginning of period		$	10.33		$	10.80		$	10.55		$	10.02		$	10.35		$	10.23
Net investment income(a)			0.11			0.22			0.27			0.31			0.32			0.26
Net realized and unrealized gain (loss)			(1.31	)		(0.43	)		0.66			0.66			(0.34	)		0.16
Net increase (decrease) from investment operations			(1.20	)		(0.21	)		0.93			0.97			(0.02	)		0.42
Distributions(b)
From net investment income			(0.10	)		(0.15	)		(0.56	)		(0.32	)		(0.31	)		(0.26	)
From net realized gain			—			(0.06	)		(0.12	)		(0.12	)		(0.00	)(c)		—
Return of capital			—			(0.05	)		—			—			—			(0.04	)
Total distributions			(0.10	)		(0.26	)		(0.68	)		(0.44	)		(0.31	)		(0.30	)
Net asset value, end of period		$	9.03		$	10.33		$	10.80		$	10.55		$	10.02		$	10.35
Total Return(d)
Based on net asset value			(11.65	)%(e)		(1.93	)%		8.93	%		9.78	%		(0.14	)%		4.14	%
Ratios to Average Net Assets(f)(g)
Total expenses			0.29	%(h)		0.30	%		0.28	%		0.29	%		0.33	%(i)		0.30	%
Total expenses after fees waived and/or reimbursed			0.24	%(h)		0.25	%		0.23	%		0.24	%		0.30	%(i)		0.30	%
Net investment income			2.36	%(h)		2.06	%		2.46	%		2.97	%		3.19	%		2.48	%
Supplemental Data
Net assets, end of period (000)		$	90,348		$	72,493		$	62,343		$	27,973		$	377		$	197
Portfolio turnover rate of the Master Portfolio(j)			100	%		219	%		410	%		263	%		331	%		515	%

^(a)  Based on average shares outstanding.

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

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

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

^(e)  Aggregate total return.

^(f)  Includes the Fund’s share of the Master Portfolio’s allocated net expenses and/or net investment income.

^(g)  Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(h)  Annualized.

⁽ⁱ⁾  Includes reorganization and board realignment and consolidation costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.29% and 0.26%, respectively.

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

	Six Months Ended 06/30/22 (unaudited)			Year Ended December 31,
				2021			2020			2019			2018			2017
Portfolio turnover rate (excluding MDRs)		54	%		123	%		261	%		166	%		189	%		322	%

See notes to financial statements.

FUND  FINANCIAL  HIGHLIGHTS 15

Notes to Financial Statements (unaudited)

1. ORGANIZATION

BlackRock Funds VI (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 Delaware statutory trust. BlackRock Advantage CoreAlpha Bond Fund (the “Fund”) is a series of the Trust. The Fund is classified as diversified.

The Fund seeks to achieve its investment objective by investing all of its assets in Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio II (“MIP II”), an affiliate of the Fund, which has the same investment objective and strategies as the Fund. The value of the Fund’s investment in the Master Portfolio reflects the Fund’s proportionate interest in the net assets of the Master Portfolio. The performance of the Fund is directly affected by the performance of the Master Portfolio. At June 30, 2022, the percentage of the Master Portfolio owned by the Fund was 90.8%. The financial statements of the Master Portfolio, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements.

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 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).

The Board of Trustees of the Trust and Board of Trustees of MIP II are referred to throughout this report as the “Board” and the members are referred to as “Trustees.”

Share Class	Initial Sales Charge	CDSC			Conversion Privilege
Institutional and Class K	No		No		None
Investor A Shares	Yes		No	(a)	None
Investor C Shares	No		Yes	(b)	To Investor A Shares after approximately 8 years

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

^(b)  A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.

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

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, contributions to and withdrawals from the Master Portfolio are accounted for on a trade date basis. The Fund records its proportionate share of the Master Portfolio’s income, expenses and realized and unrealized gains and losses on a daily basis. Realized and unrealized gains and losses are adjusted utilizing partnership tax allocation rules. In addition, the Fund accrues its own expenses. 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 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.

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

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by the Fund’s 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 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

16 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

Fixed-Income Complex and reflected as Trustees and Officer expense on the Statement of Operations. The Trustees 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 Administrator, 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 policy is to value its financial instruments at fair value. The Fund records its investment in the Master Portfolio at fair value based on the Fund’s proportionate interest in the net assets of the Master Portfolio. Valuation of securities held by the Master Portfolio is discussed in Note 3 of the Master Portfolio’s Notes to Financial Statements, which are included elsewhere in this report.

4. ADMINISTRATION AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Administration: The Trust, on behalf of the Fund, entered into an Administration Agreement with BAL, which has agreed to provide general administrative services (other than investment advice and related portfolio activities). BAL has agreed to bear all of the Fund’s ordinary operating expenses, excluding, generally, investment advisory fees, distribution fees, brokerage and other expenses related to the execution of portfolio transactions, extraordinary expenses and certain other expenses which are borne by the Fund. BAL is entitled to receive for these administrative services an annual fee based on the average daily net assets of the Fund as follows:

	Institutional			Investor A			Investor C			Class K
Administration fees - class specific		0.05	%		0.05	%		0.05	%		0.05	%

For the six months ended June 30, 2022, the following table shows the class specific administration fees borne directly by each share class of the Fund:

	Institutional		Investor A		Investor C		Class K		Total
Administration fees — class specific	$	183,499	$	98,238	$	164	$	23,599	$	305,500

From time to time, BAL may waive such fees in whole or in part. Any such waiver will reduce the expenses of the Fund and, accordingly, have a favorable impact on its performance. BAL may delegate certain of its administration duties to sub-administrators.

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 Administrator. 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:

Share Class	Service Fees			Distribution Fees
Investor A		0.25	%		N/A
Investor C		0.25			0.75	%

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

For the six months ended June 30, 2022, the following table shows the class specific service and distribution fees borne directly by each share class of the Fund:

Fund Name	Investor A		Investor C		Total
BlackRock Advantage CoreAlpha Bond Fund	$	491,188	$	3,286	$	494,474

Other Fees: For the six months ended June 30, 2022, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares for a total of $5,575.

For the six months ended June 30, 2022, affiliates received CDSCs as follows:

	Investor A		Investor C		Total
CDSC	$	588	$	115	$	703

Expense Waivers and Reimbursements: The fees and expenses of the Fund’s Independent Trustees, counsel to the Independent Trustees and the Fund’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Fund. BAL has contractually agreed to reimburse the Fund or provide an offsetting credit against the administration fees paid by the Fund in an amount equal to these independent expenses through June 30, 2023. For the six months ended June 30, 2022, the amount waived was $5,702 which is included in fees waived and/or reimbursed by the Administrator in the Statement of Operations.

FUND  NOTES  TO  FINANCIAL  STATEMENTS 17

Notes to Financial Statements (unaudited) (continued)

BAL has contractually agreed to waive 0.05% of the administration fee payable to BAL applicable to Class K Shares of the Fund through June 30, 2023. For the six months ended June 30, 2022, the amount waived was $23,599 which is included in fees waived and/or reimbursed by the Administrator in the Statement of Operations.

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, 2022, 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, Inc. (“BlackRock”) or its affiliates.

5. 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, 2022, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

6. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Six Months Ended 06/30/22						Year Ended 12/31/21
Fund Name / Share Class	Shares			Amounts			Shares			Amounts
BlackRock Advantage CoreAlpha Bond Fund
Institutional
Shares sold		3,471,860		$	33,474,046			21,546,402		$	226,875,229
Shares issued in reinvestment of distributions		797,834			7,582,373			2,149,167			22,509,645
Shares redeemed		(16,103,456	)		(151,237,442	)		(44,625,546	)		(468,904,081	)
		(11,833,762	)	$	(110,181,023	)		(20,929,977	)	$	(219,519,207	)
Investor A
Shares sold and automatic conversion of shares		687,388		$	6,603,970			2,471,260		$	26,053,426
Shares issued in reinvestment of distributions		369,868			3,512,079			965,436			10,108,490
Shares redeemed		(4,600,412	)		(43,901,680	)		(7,450,516	)		(78,204,224	)
		(3,543,156	)	$	(33,785,631	)		(4,013,820	)	$	(42,042,308	)
Investor C
Shares sold		15,737		$	151,313			45,471		$	480,128
Shares issued in reinvestment of distributions		358			3,420			1,506			15,787
Shares redeemed and automatic conversion of shares		(50,737	)		(479,904	)		(104,199	)		(1,096,788	)
		(34,642	)	$	(325,171	)		(57,222	)	$	(600,873	)
Class K
Shares sold		4,855,516		$	48,027,099			4,535,921		$	47,858,479
Shares issued in reinvestment of distributions		106,293			1,007,784			166,600			1,744,823
Shares redeemed		(1,968,290	)		(18,410,324	)		(3,460,059	)		(36,256,660	)
		2,993,519		$	30,624,559			1,242,462		$	13,346,642
		(12,418,041	)	$	(113,667,266	)		(23,758,557	)	$	(248,815,746	)

As of June 30, 2022, BlackRock HoldCo 2, Inc., an affiliate of the Fund, owned 1,924 Investor C Shares of the Fund.

18 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

7. SUBSEQUENT EVENTS

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

FUND  NOTES  TO  FINANCIAL  STATEMENTS 19

Master Portfolio Information  as of June 30, 2022   Advantage CoreAlpha Bond Master Portfolio

PORTFOLIO COMPOSITION

Asset Type(a)	Percent of Total Investments
Corporate Bonds		38.0	%
U.S. Government Sponsored Agency Securities		35.6
Non-Agency Mortgage-Backed Securities		13.4
Asset-Backed Securities		11.7
Other*		1.3

CREDIT QUALITY ALLOCATION

Credit Rating(a)(b)	Percent of Total Investments
AAA/Aaa(c)		47.2	%
AA/Aa		4.6
A		21.6
BBB/Baa		20.4
BB/Ba		2.0
CCC/Caa		0.1
N/R		4.1

^(a)  Excludes short-term securities.

^(b)  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, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

^(c)  Includes U.S. Government Sponsored Agency Securities which are deemed AAA/Aaa by the investment adviser.

* Includes one or more investment categories that individually represents less than 1.0% of the Master Portfolio’s total investments. Please refer to the Schedule of Investments for details.

20 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments (unaudited) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Asset-Backed Securities
ACC Auto Trust, Series 2021-A, Class A, 1.08%, 04/15/27(a)	$	2,251	$	2,213,638
Avant Loans Funding Trust, Series 2021-REV1, Class A, 1.21%, 07/15/30(a)		5,460		5,146,610
Carvana Auto Receivables Trust
Series 2021-N2, Class B, 0.75%, 03/10/28		722		696,377
Series 2021-N2, Class C, 1.07%, 03/10/28		3,686		3,555,483
Chase Funding Trust, Series 2004-2, Class 2A2, (1 mo. LIBOR US + 0.50%), 2.12%, 02/26/35(b)		117		111,898
College Loan Corp. Trust I, Series 2004-1, Class A4, (3 mo. LIBOR US + 0.19%), 1.37%, 04/25/24(b)		420		420,297
Conseco Finance Corp., Series 1996-9, Class M1, 7.63%, 08/15/27(b)		17		16,971
CWABS, Inc. Asset-Backed Certificates, Series 2004-1, Class M1, (1 mo. LIBOR US + 0.75%), 2.37%, 03/25/34(b)		6		5,558
Drive Auto Receivables Trust
Series 2018-3, Class D, 4.30%, 09/16/24		852		853,656
Series 2018-4, Class D, 4.09%, 01/15/26		590		591,861
Series 2019-2, Class C, 3.42%, 06/16/25		598		597,999
Series 2020-1, Class C, 2.36%, 03/16/26		4,076		4,070,427
Series 2020-1, Class D, 2.70%, 05/17/27		7,600		7,484,925
Series 2020-2, Class B, 1.42%, 03/17/25		667		666,303
Series 2020-2, Class C, 2.28%, 08/17/26		1,890		1,881,763
Series 2021-1, Class C, 1.02%, 06/15/27		6,240		6,079,198
Series 2021-1, Class D, 1.45%, 01/16/29		1,890		1,769,772
DT Auto Owner Trust, Series 2019-3A, Class C, 2.74%, 04/15/25(a)		445		444,996
Exeter Automobile Receivables Trust
Series 2020-3A, Class B, 0.79%, 09/16/24		277		277,247
Series 2020-3A, Class D, 1.73%, 07/15/26		1,730		1,681,113
Series 2021-1A, Class C, 0.74%, 01/15/26		7,930		7,723,572
Series 2021-3A, Class B, 0.69%, 01/15/26		2,500		2,445,349
Series 2021-3A, Class C, 0.96%, 10/15/26		2,950		2,820,329
Ford Credit Auto Owner Trust(a)
Series 2018-1, Class A, 3.19%, 07/15/31		2,870		2,823,129
Series 2019-1, Class A, 3.52%, 07/15/30		450		448,235
JPMorgan Chase Bank NA(a)
Series 2021-2, Class B, 0.89%, 12/26/28		3,054		2,958,982
Series 2021-2, Class C, 0.97%, 12/26/28		1,313		1,266,744
Series 2021-3, Class B, 0.76%, 02/26/29		5,279		5,101,444
Louisiana Local Government Environmental Facilities & Community Development Authority, Series 2022-ELL, Class A-3, 4.28%, 02/01/36		85		81,749
OneMain Financial Issuance Trust, Series 2019-2A, Class A, 3.14%, 10/14/36(a)		5,690		5,278,226
Santander Drive Auto Receivables Trust
Series 2018-5, Class D, 4.19%, 12/16/24		1,116		1,118,834
Series 2020-2, Class D, 2.22%, 09/15/26		8,000		7,829,240
Series 2020-4, Class C, 1.01%, 01/15/26		5,750		5,667,290
Series 2021-1, Class C, 0.75%, 02/17/26		4,730		4,615,487
Series 2021-3, Class C, 0.95%, 09/15/27		4,420		4,252,843
Series 2021-4, Class C, 1.26%, 02/16/27		5,030		4,796,379
Santander Revolving Auto Loan Trust,
Series 2019-A, Class A, 2.51%, 01/26/32(a)		4,790		4,578,668
Toyota Auto Loan Extended Note Trust, Series 2020-1A, Class A, 1.35%, 05/25/33(a)		5,680		5,283,009
Upstart Securitization Trust(a) Series 2021-1, Class A, 0.87%, 03/20/31		813		804,573

Security	Par (000)		Value
Asset-Backed Securities (continued)
Upstart Securitization Trust(a) (continued)
Series 2021-3, Class A, 0.83%, 07/20/31	$	2,712	$	2,633,239
Series 2021-4, Class A, 0.84%, 09/20/31		4,573		4,402,745
Series 2021-5, Class A, 1.31%, 11/20/31		1,612		1,551,812
Westlake Automobile Receivables Trust(a)
Series 2020-2A, Class B, 1.32%, 07/15/25		1,033		1,031,266
Series 2020-2A, Class C, 2.01%, 07/15/25		5,920		5,850,633
Series 2020-3A, Class B, 0.78%, 11/17/25		3,480		3,440,725
Series 2020-3A, Class C, 1.24%, 11/17/25		4,250		4,145,505
Series 2022-1A, Class B, 2.75%, 03/15/27		3,970		3,850,650
Total Asset-Backed Securities — 11.4% (Cost: $139,827,850)				135,366,749
	Shares
Common Stocks
Diversified Financial Services — 0.0%
Edcon Ltd.(c)		1,807,150		1
Total Common Stocks — 0.0% (Cost: $ —)				1
	Par (000)
Corporate Bonds
Advertising Agencies — 0.0%
Interpublic Group of Cos., Inc., 3.38%, 03/01/41	$	378		283,468
Aerospace & Defense — 0.7%
3M Co., 2.65%, 04/15/25(d)		1,710		1,676,893
Boeing Co., 4.51%, 05/01/23		1,300		1,303,063
General Dynamics Corp.
3.25%, 04/01/25		1,130		1,120,621
1.15%, 06/01/26		1,495		1,356,875
2.25%, 06/01/31		1,350		1,174,300
Lockheed Martin Corp.
4.15%, 06/15/53		700		652,927
4.30%, 06/15/62		535		502,148
Trane Technologies Luxembourg Finance SA, 4.50%, 03/21/49		95		84,721
				7,871,548
Airlines — 0.1%
Delta Air Lines, Inc., 7.38%, 01/15/26(d)		900		898,605
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., 8.00%, 09/20/25(a)		720		738,914
				1,637,519
Automobiles — 0.4%
American Honda Finance Corp., 1.20%, 07/08/25		900		830,555
General Motors Financial Co., Inc.
4.15%, 06/19/23		215		215,132
2.90%, 02/26/25		1,335		1,274,053
Genuine Parts Co., 1.88%, 11/01/30		1,530		1,209,045
Toyota Motor Credit Corp., 2.50%, 03/22/24		1,570		1,545,846
				5,074,631

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 21

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Banks — 2.1%
Bank of Montreal
3.70%, 06/07/25	$	610	$	604,599
2.65%, 03/08/27		935		866,030
Canadian Imperial Bank of Commerce
0.45%, 06/22/23		2,650		2,567,554
2.25%, 01/28/25		1,960		1,878,832
Credit Suisse AG, 1.00%, 05/05/23		285		278,897
Fifth Third Bancorp, 2.38%, 01/28/25		85		81,401
First Republic Bank, (SOFR + 0.62%), 1.91%, 02/12/24(b)		2,500		2,470,885
HSBC USA, Inc., 3.75%, 05/24/24		441		438,408
ING Groep NV, 4.10%, 10/02/23		2,290		2,296,100
Royal Bank of Canada, 3.63%, 05/04/27		1,030		998,368
Santander Holdings USA, Inc., 3.45%, 06/02/25		510		490,421
Santander U.K. Group Holdings PLC, (3 mo.
LIBOR US + 1.40%), 3.82%, 11/03/28(b)		240		222,785
SVB Financial Group, 1.80%, 02/02/31		2,094		1,613,489
Toronto-Dominion Bank, 1.45%, 01/10/25(d)		1,420		1,342,693
Truist Financial Corp., 1.20%, 08/05/25		4,850		4,455,595
Wells Fargo & Co.
3.75%, 01/24/24		1,540		1,543,647
3.30%, 09/09/24		1,590		1,568,657
3.00%, 02/19/25		800		781,773
(SOFR + 1.51%), 3.53%, 03/24/28(b)		35		33,150
Westpac Banking Corp., 2.96%, 11/16/40		120		86,816
				24,620,100
Beverages — 0.5%
Coca-Cola Co., 3.00%, 03/05/51		90		72,672
Coca-Cola Femsa SAB de CV, 2.75%, 01/22/30(d)		4,669		4,159,204
Constellation Brands, Inc., 3.75%, 05/01/50		250		199,690
Diageo Capital PLC, 2.13%, 04/29/32		380		316,922
Keurig Dr. Pepper, Inc., 4.50%, 04/15/52		125		110,186
PepsiCo, Inc.
2.85%, 02/24/26		800		785,440
3.45%, 10/06/46		7		6,009
				5,650,123
Biotechnology — 0.2%
Amgen, Inc.
3.63%, 05/22/24		400		399,172
3.13%, 05/01/25(d)		800		784,203
2.60%, 08/19/26		800		756,613
Gilead Sciences, Inc., 3.50%, 02/01/25		400		395,188
				2,335,176
Building Materials — 0.1%
Boise Cascade Co., 4.88%, 07/01/30(a)(d)		1,250		1,093,375
Eagle Materials, Inc., 2.50%, 07/01/31		785		619,989
Masco Corp., 2.00%, 10/01/30		160		126,413
				1,839,777
Building Products — 0.1%
Allegion PLC, 3.50%, 10/01/29		330		291,865
Home Depot, Inc.
5.40%, 09/15/40		200		214,255
3.13%, 12/15/49		360		279,822
Lowe’s Cos., Inc.
4.00%, 04/15/25		420		421,387

Security	Par (000)		Value
Building Products (continued)
Lowe’s Cos., Inc. (continued)
3.35%, 04/01/27	$	280	$	269,452
4.25%, 04/01/52		140		121,233
				1,598,014
Capital Markets — 1.7%
Ameriprise Financial, Inc., 3.00%, 04/02/25		930		908,133
Ares Capital Corp.
4.20%, 06/10/24		4,815		4,727,518
3.25%, 07/15/25(d)		3,070		2,838,107
3.88%, 01/15/26		558		512,434
2.15%, 07/15/26		1,542		1,292,368
2.88%, 06/15/28		240		190,138
Barings BDC, Inc., 3.30%, 11/23/26(a)		455		394,677
Blackstone Private Credit Fund, 4.70%, 03/24/25(a)(d)		350		336,227
Brookfield Finance, Inc.
4.70%, 09/20/47		5		4,380
3.50%, 03/30/51		205		147,472
Charles Schwab Corp., 2.45%, 03/03/27		345		321,751
FS KKR Capital Corp.
4.63%, 07/15/24		950		932,249
4.13%, 02/01/25		680		644,851
3.40%, 01/15/26		1,565		1,389,018
2.63%, 01/15/27(d)		2,810		2,363,042
3.25%, 07/15/27		440		374,401
Goldman Sachs BDC, Inc., 2.88%, 01/15/26		35		31,549
Golub Capital BDC, Inc., 2.50%, 08/24/26		840		703,104
Morgan Stanley Direct Lending Fund, 4.50%, 02/11/27(a)		1,345		1,221,921
Nomura Holdings, Inc., 2.65%, 01/16/25		1,100		1,049,341
				20,382,681
Chemicals — 0.7%
Air Products & Chemicals, Inc., 2.70%, 05/15/40(d)		187		149,550
CF Industries, Inc.
4.95%, 06/01/43		1,325		1,203,104
5.38%, 03/15/44		55		51,267
Emerson Electric Co.
2.00%, 12/21/28		1,710		1,506,240
2.20%, 12/21/31(d)		995		842,365
International Flavors & Fragrances, Inc., 3.20%, 05/01/23(d)		1,590		1,584,045
Methanex Corp., 5.25%, 12/15/29		2,015		1,703,501
RPM International, Inc., 3.75%, 03/15/27		105		100,393
Sherwin-Williams Co.
3.30%, 02/01/25		800		793,455
3.95%, 01/15/26		10		9,906
				7,943,826
Commercial Services & Supplies — 0.2%
ASGN, Inc., 4.63%, 05/15/28(a)(d)		2,055		1,780,247
Massachusetts Institute of Technology, 3.07%, 04/01/52		264		217,949
Rockefeller Foundation, Series 2020, 2.49%, 10/01/50		72		52,346
				2,050,542
Communications Equipment — 0.2%
Motorola Solutions, Inc. 4.60%, 02/23/28(d)		939		908,107

22 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Communications Equipment (continued)
Motorola Solutions, Inc. (continued)
2.30%, 11/15/30(d)	$	323	$	252,722
5.50%, 09/01/44		1,370		1,275,235
				2,436,064
Construction Materials — 0.0%
Allegion U.S. Holding Co., Inc., 3.55%, 10/01/27		125		114,931
Consumer Discretionary — 0.5%
Quanta Services, Inc.
0.95%, 10/01/24		2,110		1,951,442
2.90%, 10/01/30		2,290		1,886,625
2.35%, 01/15/32		1,845		1,428,966
3.05%, 10/01/41		985		682,316
				5,949,349
Consumer Finance — 0.6%
Block Financial LLC, 2.50%, 07/15/28		536		467,151
Mastercard, Inc., 3.65%, 06/01/49		280		246,235
S&P Global, Inc.
2.95%, 01/22/27(d)		685		657,127
2.45%, 03/01/27(a)		840		786,243
2.90%, 03/01/32(a)		2,260		2,014,148
2.30%, 08/15/60(d)		2,948		1,796,710
Visa, Inc., 3.65%, 09/15/47		1,065		947,780
				6,915,394
Containers & Packaging — 0.0%
Packaging Corp. of America, 3.05%, 10/01/51		285		201,843
Diversified Financial Services — 5.7%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust
1.15%, 10/29/23		310		295,375
1.65%, 10/29/24		565		521,682
2.45%, 10/29/26		220		191,610
3.00%, 10/29/28		210		176,887
Air Lease Corp., 3.38%, 07/01/25		700		659,174
Aircastle Ltd., 4.25%, 06/15/26		125		115,640
Ally Financial, Inc., 1.45%, 10/02/23		335		323,818
Banco Santander SA
2.75%, 05/28/25		1,600		1,515,028
2.75%, 12/03/30		400		317,695
(1 year CMT + 0.45%), 0.70%, 06/30/24(b)		2,200		2,119,256
(1 year CMT + 0.90%), 1.72%, 09/14/27(b)		400		347,191
Bank of America Corp.(b)
(3 mo. LIBOR US + 0.94%), 3.86%, 07/23/24		2,565		2,553,736
(3 mo. LIBOR US + 1.81%), 4.24%, 04/24/38		1,050		961,922
(3 mo. LIBOR US + 3.15%), 4.08%, 03/20/51		91		78,429
(SOFR + 0.41%), 0.52%, 06/14/24		730		703,604
(SOFR + 0.96%), 1.73%, 07/22/27		2,500		2,222,240
(SOFR + 1.15%), 1.32%, 06/19/26		2,030		1,845,351
Series N, (SOFR + 1.65%), 3.48%, 03/13/52		595		465,290
Bank of Nova Scotia
0.65%, 07/31/24		1,235		1,157,737
1.05%, 03/02/26		1,000		895,129
Barclays PLC, (1 year CMT + 1.70%), 3.81%, 03/10/42(b)(d)		233		176,646
Citigroup, Inc.
4.75%, 05/18/46		50		44,642
(3 mo. LIBOR US + 0.90%), 3.35%, 04/24/25(b)		2,805		2,747,356
(SOFR + 0.69%), 0.78%, 10/30/24(b)		8,880		8,465,270
(SOFR + 0.77%), 1.46%, 06/09/27(b)		3,035		2,683,217

Security	Par (000)		Value
Diversified Financial Services (continued)
Citigroup, Inc. (continued)
(SOFR + 1.67%), 1.68%, 05/15/24(b)	$	800	$	783,903
(SOFR + 2.84%), 3.11%, 04/08/26(b)		1,630		1,564,727
CME Group, Inc., 2.65%, 03/15/32		305		270,087
Credit Suisse Group AG, 3.80%, 06/09/23(d)		300		297,152
Deutsche Bank AG, Series E, 0.96%, 11/08/23		445		426,338
GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/35		438		409,090
Goldman Sachs Group, Inc.
3.75%, 05/22/25(d)		500		494,005
3.50%, 11/16/26		365		350,183
3.85%, 01/26/27		1,090		1,053,702
2.60%, 02/07/30		2,880		2,456,401
(3 mo. LIBOR US + 1.30%), 4.22%, 05/01/29(b)		550		528,656
(3 mo. LIBOR US + 1.43%), 4.41%, 04/23/39(b)(d)		720		653,516
HSBC Holdings PLC(b)
(SOFR + 0.71%), 0.98%, 05/24/25		1,980		1,846,204
(SOFR + 1.43%), 3.00%, 03/10/26		735		699,602
(SOFR + 1.51%), 4.18%, 12/09/25		1,640		1,613,943
(SOFR + 2.53%), 4.76%, 03/29/33		1,460		1,346,656
JPMorgan Chase & Co.
3.38%, 05/01/23(d)		2,900		2,900,081
3.13%, 01/23/25(d)		800		788,271
3.30%, 04/01/26(d)		600		582,527
(3 mo. LIBOR US + 1.16%), 3.22%, 03/01/25(b)		600		589,205
(SOFR + 0.61%), 1.56%, 12/10/25(b)		1,600		1,494,764
(SOFR + 0.89%), 1.58%, 04/22/27(b)		816		726,172
Kimberly-Clark Corp., 2.88%, 02/07/50(d)		160		121,207
Lloyds Banking Group PLC, (1 year CMT + 0.55%), 0.70%, 05/11/24(b)		1,590		1,543,451
Mitsubishi UFJ Financial Group, Inc.(b)
(1 year CMT + 0.55%), 0.95%, 07/19/25		1,820		1,698,293
(1 year CMT + 0.95%), 2.31%, 07/20/32		425		345,967
(1 year CMT + 0.97%), 2.49%, 10/13/32		1,015		835,344
Mizuho Financial Group, Inc., (SOFR + 1.25%), 1.24%, 07/10/24(b)		2,845		2,765,720
Morgan Stanley
3.88%, 01/27/26		200		196,971
6.38%, 07/24/42		460		526,902
4.30%, 01/27/45		580		514,995
(SOFR + 0.86%), 1.51%, 07/20/27(b)		1,510		1,324,315
Series I, (SOFR + 0.75%), 0.86%, 10/21/25(b)		2,060		1,900,182
Nasdaq, Inc.
3.85%, 06/30/26(d)		32		31,778
3.25%, 04/28/50		68		49,469
NatWest Group PLC, (1 year CMT + 2.15%), 2.36%, 05/22/24(b)		290		284,800
Sumitomo Mitsui Financial Group, Inc.
2.35%, 01/15/25(d)		1,325		1,267,151
1.47%, 07/08/25		1,049		963,392
				67,829,047
Diversified Telecommunication Services — 0.9%
AT&T, Inc.
1.70%, 03/25/26		3,620		3,307,512
4.85%, 03/01/39		1,185		1,135,220
3.55%, 09/15/55(d)		625		468,275
3.80%, 12/01/57(d)		238		183,813
Verizon Communications, Inc. 1.68%, 10/30/30		2,347		1,891,481

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 23

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Diversified Telecommunication Services (continued)
Verizon Communications, Inc. (continued)
4.50%, 08/10/33(d)	$	2,600	$	2,534,877
4.13%, 08/15/46		430		381,173
2.88%, 11/20/50		170		120,634
3.00%, 11/20/60		280		190,082
				10,213,067
Education — 0.1%
Ford Foundation
Series 2020, 2.42%, 06/01/50(d)		5		3,565
Series 2020, 2.82%, 06/01/70		30		20,626
Georgetown University, Series 20A, 2.94%, 04/01/50		27		19,097
Northwestern University, Series 2020, 2.64%, 12/01/50		266		196,366
President & Fellows of Harvard College, 2.52%, 10/15/50		54		39,546
University of Chicago
Series 20B, 2.76%, 04/01/45		148		121,825
Series C, 2.55%, 04/01/50		157		113,590
University of Southern California, Series 21-A, 2.95%, 10/01/51		190		148,103
Yale University, Series 2020, 2.40%, 04/15/50		272		197,029
				859,747
Electric Utilities — 3.1%
AEP Texas, Inc.
5.25%, 05/15/52		140		141,888
Series I, 2.10%, 07/01/30		790		656,895
AEP Transmission Co. LLC
3.15%, 09/15/49		30		22,762
4.50%, 06/15/52		130		124,487
Alabama Power Co.
3.05%, 03/15/32		300		274,104
3.45%, 10/01/49		370		292,716
Ameren Corp., 2.50%, 09/15/24		65		62,998
Ameren Illinois Co., 3.25%, 03/15/50		130		101,396
American Electric Power Co., Inc., 2.03%, 03/15/24		1,115		1,078,638
Appalachian Power Co., Series X, 3.30%, 06/01/27		1,190		1,140,798
Arizona Public Service Co.
3.15%, 05/15/25(d)		400		392,201
2.95%, 09/15/27		800		750,496
Atlantic City Electric Co., 2.30%, 03/15/31(d)		570		491,918
Avangrid, Inc., 3.80%, 06/01/29		600		561,310
Baltimore Gas & Electric Co.
4.25%, 09/15/48		225		207,326
2.90%, 06/15/50		170		124,096
Berkshire Hathaway Energy Co., 4.45%, 01/15/49		500		465,769
Black Hills Corp., 1.04%, 08/23/24		200		186,991
CenterPoint Energy Houston Electric LLC, Class AH, 3.60%, 03/01/52		55		47,121
CenterPoint Energy, Inc., 4.25%, 11/01/28		730		711,300
Commonwealth Edison Co.
3.70%, 08/15/28		1,200		1,170,236
2.20%, 03/01/30		500		434,013
4.00%, 03/01/49		90		80,594
3.13%, 03/15/51		70		53,721
Consolidated Edison Co. of New York, Inc.
Series 06-A, 5.85%, 03/15/36		1,000		1,075,835

Security	Par (000)		Value
Electric Utilities (continued)
Consolidated Edison Co. of New York, Inc. (continued)
Series A, 4.13%, 05/15/49	$	50	$	44,030
Series B, 3.13%, 11/15/27		800		760,695
Consumers Energy Co., 2.65%, 08/15/52		125		87,520
Dominion Energy, Inc., 3.90%, 10/01/25		500		497,160
DTE Electric Co., Series B, 3.65%, 03/01/52		217		187,212
Duke Energy Corp.
2.65%, 09/01/26(d)		300		280,966
4.20%, 06/15/49		700		584,051
Duke Energy Florida LLC, 3.80%, 07/15/28		1,365		1,333,833
Duke Energy Ohio, Inc., 4.30%, 02/01/49		100		90,731
Entergy Corp., 0.90%, 09/15/25		285		256,545
Entergy Texas, Inc., 3.55%, 09/30/49(d)		520		414,477
Evergy Kansas Central, Inc.
2.55%, 07/01/26(d)		800		758,063
3.45%, 04/15/50		130		103,623
Evergy Metro, Inc., 3.65%, 08/15/25		300		296,806
Evergy, Inc., 2.90%, 09/15/29		50		44,127
Eversource Energy, Series M, 3.30%, 01/15/28		1,000		939,927
Florida Power & Light Co.
4.05%, 10/01/44		500		460,569
3.15%, 10/01/49		40		31,770
2.88%, 12/04/51		90		66,922
Georgia Power Co., 3.25%, 04/01/26		800		776,748
Interstate Power & Light Co., 2.30%, 06/01/30		530		450,981
Kentucky Utilities Co., 3.30%, 06/01/50(d)		60		46,789
MidAmerican Energy Co.
3.10%, 05/01/27		800		772,205
3.15%, 04/15/50		60		46,967
2.70%, 08/01/52		105		75,359
National Rural Utilities Cooperative Finance Corp., 3.70%, 03/15/29		680		651,807
NextEra Energy Capital Holdings, Inc.
2.94%, 03/21/24		470		462,791
3.55%, 05/01/27		245		236,530
2.25%, 06/01/30		200		167,947
5.00%, 07/15/32		50		51,225
NSTAR Electric Co., 3.10%, 06/01/51		110		84,202
Oglethorpe Power Corp., 5.05%, 10/01/48		130		121,695
Oncor Electric Delivery Co. LLC
3.80%, 06/01/49		320		280,768
4.60%, 06/01/52(a)		40		39,730
Pacific Gas & Electric Co.
2.10%, 08/01/27(d)		65		54,487
3.00%, 06/15/28(d)		100		86,154
3.30%, 08/01/40		90		62,052
4.95%, 07/01/50		400		319,164
3.50%, 08/01/50		340		227,104
PacifiCorp., 4.13%, 01/15/49		280		250,741
PECO Energy Co., 3.05%, 03/15/51		70		53,472
PG&E Corp., 5.25%, 07/01/30(d)		2,125		1,748,195
PPL Electric Utilities Corp., 2.50%, 09/01/22(d)		400		400,131
Public Service Co. of Colorado
3.70%, 06/15/28		1,300		1,279,269
4.05%, 09/15/49		20		18,028
Public Service Electric & Gas Co.
2.25%, 09/15/26		400		375,215
3.00%, 05/15/27(d)		500		481,807
3.70%, 05/01/28		800		779,903

24 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Electric Utilities (continued)
Public Service Electric & Gas Co. (continued)
3.10%, 03/15/32(d)	$	85	$	78,082
2.05%, 08/01/50		105		65,352
Puget Sound Energy, Inc., 3.25%, 09/15/49		390		297,962
San Diego Gas & Electric Co., 2.50%, 05/15/26		400		378,682
Sempra Energy, 3.70%, 04/01/29		140		131,474
Southern California Edison Co.
3.65%, 02/01/50		100		76,453
Series B, 4.88%, 03/01/49		260		235,522
Series C, 4.13%, 03/01/48		370		304,401
Southern Co., 3.25%, 07/01/26		1,900		1,818,147
Tampa Electric Co., 3.45%, 03/15/51		35		27,557
Tucson Electric Power Co., 1.50%, 08/01/30		190		151,550
Union Electric Co., 4.00%, 04/01/48		230		203,040
Virginia Electric & Power Co.
3.30%, 12/01/49		320		254,614
4.63%, 05/15/52		110		106,441
Series A, 3.80%, 04/01/28		1,750		1,710,506
Wisconsin Electric Power Co., 3.10%, 06/01/25		800		787,160
Wisconsin Power & Light Co., 3.05%, 10/15/27		390		369,117
Wisconsin Public Service Corp., 3.30%, 09/01/49		85		66,713
Xcel Energy, Inc.
4.00%, 06/15/28		900		879,669
3.50%, 12/01/49		50		39,570
				36,272,114
Electronic Equipment, Instruments & Components — 0.2%
Amphenol Corp., 2.05%, 03/01/25		300		286,586
Arrow Electronics, Inc., 2.95%, 02/15/32		499		414,042
Keysight Technologies, Inc., 4.60%, 04/06/27		1,225		1,230,322
				1,930,950
Energy Equipment & Services — 0.0%
Baker Hughes Holdings LLC/Baker Hughes Co.- Obligor, Inc., 4.08%, 12/15/47		750		634,046
Environmental, Maintenance & Security Service — 0.1%
Waste Connections, Inc.
2.60%, 02/01/30		305		266,850
3.20%, 06/01/32		715		637,321
				904,171
Equity Real Estate Investment Trusts (REITs) — 1.2%
American Homes 4 Rent LP, 3.38%, 07/15/51		55		37,975
American Tower Corp.
3.38%, 10/15/26		110		104,006
3.65%, 03/15/27		950		902,150
3.70%, 10/15/49		190		142,614
Camden Property Trust, 2.80%, 05/15/30		240		211,853
Crown Castle International Corp.
3.70%, 06/15/26		1,000		964,714
2.25%, 01/15/31(d)		1,310		1,062,588
2.90%, 04/01/41		1,040		749,587
5.20%, 02/15/49		620		593,973
CubeSmart LP, 2.50%, 02/15/32(d)		1,630		1,323,683
Equinix, Inc., 2.63%, 11/18/24		900		863,299
Essex Portfolio LP, 1.70%, 03/01/28		1,255		1,078,316
Extra Space Storage LP, 2.35%, 03/15/32		820		650,002
Federal Realty OP LP, 3.50%, 06/01/30		210		190,549
Iron Mountain, Inc., 4.50%, 02/15/31(a)		350		286,001
Life Storage LP, 2.20%, 10/15/30		735		589,090
Mid-America Apartments LP, 1.10%, 09/15/26		70		61,463
Office Properties Income Trust, 3.45%, 10/15/31		611		457,676

Security	Par (000)		Value
Equity Real Estate Investment Trusts (REITs) (continued)
Public Storage
3.09%, 09/15/27	$	1,250	$	1,187,042
1.95%, 11/09/28		1,775		1,534,675
2.25%, 11/09/31(d)		525		433,942
Simon Property Group LP, 3.50%, 09/01/25		650		633,292
Welltower, Inc., 3.85%, 06/15/32		220		200,481
Weyerhaeuser Co., 4.00%, 04/15/30		250		235,321
				14,494,292
Food & Staples Retailing — 0.2%
Costco Wholesale Corp., 1.75%, 04/20/32		160		131,618
General Mills, Inc., 2.88%, 04/15/30		840		744,077
Kraft Heinz Foods Co.
3.88%, 05/15/27		575		556,054
4.88%, 10/01/49		645		569,697
				2,001,446
Food Products — 0.0%
Hershey Co., 2.65%, 06/01/50		105		76,701
Tyson Foods, Inc., 5.10%, 09/28/48		80		80,087
				156,788
Health Care Equipment & Supplies — 0.2%
DH Europe Finance II SARL, 3.40%, 11/15/49		375		301,297
PerkinElmer, Inc.
0.85%, 09/15/24(d)		1,625		1,503,999
1.90%, 09/15/28		760		633,233
				2,438,529
Health Care Providers & Services — 0.9%
Allina Health System, Series 2021, 2.90%, 11/15/51		230		166,752
AmerisourceBergen Corp.
3.45%, 12/15/27(d)		1,427		1,374,403
2.70%, 03/15/31		117		100,232
Banner Health, Series 2020, 3.18%, 01/01/50(d)		119		93,642
Baylor Scott & White Holdings, Series 2021, 2.84%, 11/15/50(d)		92		67,340
Beth Israel Lahey Health, Inc., Series L, 3.08%, 07/01/51		169		122,478
CommonSpirit Health, 3.91%, 10/01/50		339		272,097
DaVita, Inc.(a)
4.63%, 06/01/30(d)		1,440		1,123,001
3.75%, 02/15/31		780		559,252
Elevance Health, Inc., 3.35%, 12/01/24		1,395		1,375,742
Fred Hutchinson Cancer Center, 4.97%, 01/01/52		130		129,105
Hackensack Meridian Health, Inc., Series 2020, 2.88%, 09/01/50		58		41,979
HCA, Inc., 5.50%, 06/15/47		250		223,008
Hoag Memorial Hospital Presbyterian, 3.80%, 07/15/52		73		63,814
Humana, Inc., 3.85%, 10/01/24		1,000		998,601
Inova Health System Foundation, 4.07%, 05/15/52		18		16,617
Kaiser Foundation Hospitals
Series 2021, 2.81%, 06/01/41		57		44,197
Series 2021, 3.00%, 06/01/51		161		120,045
McKesson Corp., 0.90%, 12/03/25		1,465		1,323,365
Memorial Sloan-Kettering Cancer Center, Series 2020, 2.96%, 01/01/50		46		35,112
Methodist Hospital, Series 20A, 2.71%, 12/01/50		87		61,246
Providence St Joseph Health Obligated Group, Series 21-A, 2.70%, 10/01/51		136		92,316
Sutter Health, Series 20A, 3.36%, 08/15/50		54		41,426

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 25

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Health Care Providers & Services (continued)
UMass Memorial Health Care Obligated Group, 5.36%, 07/01/52	$	42	$	42,080
UnitedHealth Group, Inc.
2.30%, 05/15/31(d)		185		160,223
4.75%, 07/15/45		800		804,530
2.90%, 05/15/50		410		307,059
3.25%, 05/15/51		135		105,928
3.13%, 05/15/60(d)		730		532,606
WakeMed, Series A, 3.29%, 10/01/52		81		61,781
				10,459,977
Health Care Technology — 0.1%
Laboratory Corp. of America Holdings, 2.70%, 06/01/31		870		731,550
Hotels, Restaurants & Leisure — 0.2%
Choice Hotels International, Inc., 3.70%, 12/01/29		1,695		1,524,120
GLP Capital LP/GLP Financing II, Inc., 5.38%, 04/15/26		380		371,876
McDonald’s Corp., 3.70%, 01/30/26		380		378,838
				2,274,834
Household Durables — 0.2%
NVR, Inc., 3.00%, 05/15/30		3,195		2,752,635
Independent Power and Renewable Electricity Producers — 0.1%
NRG Energy, Inc., 3.63%, 02/15/31(a)		1,250		979,987
Insurance — 1.2%
Aflac, Inc., 4.75%, 01/15/49		775		747,324
Aon Global Ltd., 3.88%, 12/15/25		3,400		3,362,503
Arthur J Gallagher & Co., 3.50%, 05/20/51		580		443,192
Athene Holding Ltd.
3.95%, 05/25/51		240		178,545
3.45%, 05/15/52		55		37,857
AXA SA, 8.60%, 12/15/30		1,305		1,530,022
Berkshire Hathaway Finance Corp.
4.20%, 08/15/48		125		114,206
2.85%, 10/15/50		95		68,390
3.85%, 03/15/52		145		124,128
Berkshire Hathaway, Inc., 3.13%, 03/15/26		355		347,867
Brown & Brown, Inc.
4.20%, 03/17/32		240		218,458
4.95%, 03/17/52		782		685,949
Enstar Group Ltd., 3.10%, 09/01/31		805		641,988
Fairfax Financial Holdings Ltd., 3.38%, 03/03/31		360		311,169
Fidelity National Financial, Inc., 5.50%, 09/01/22		120		120,449
Marsh & McLennan Cos., Inc.
4.75%, 03/15/39		111		108,605
4.20%, 03/01/48		1,715		1,516,462
4.90%, 03/15/49		2,745		2,690,748
Progressive Corp.
4.13%, 04/15/47		855		775,195
3.70%, 03/15/52		35		29,322
Willis North America, Inc., 2.95%, 09/15/29		940		805,874
				14,858,253
Interactive Media & Services — 0.1%
Alphabet, Inc. 2.00%, 08/15/26		800		757,497

Security	Par (000)		Value
Interactive Media & Services (continued)
Alphabet, Inc. (continued)
2.25%, 08/15/60	$	335	$	217,654
Baidu, Inc., 1.72%, 04/09/26		490		447,622
				1,422,773
Internet & Direct Marketing Retail — 0.1%
Genuine Parts Co., 1.75%, 02/01/25		1,050		989,278
Internet Software & Services — 0.1%
Booking Holdings, Inc., 4.63%, 04/13/30		315		313,199
VeriSign, Inc., 2.70%, 06/15/31		630		506,988
				820,187
IT Services — 0.6%
Gartner, Inc., 4.50%, 07/01/28(a)(d)		2,005		1,841,001
International Business Machines Corp., 4.25%, 05/15/49(d)		565		499,293
Kyndryl Holdings, Inc.(a)
2.05%, 10/15/26		160		134,683
2.70%, 10/15/28		150		119,461
4.10%, 10/15/41(d)		150		99,422
Verisk Analytics, Inc.
4.00%, 06/15/25		1,400		1,388,734
4.13%, 03/15/29		2,286		2,202,647
Ziff Davis, Inc., 4.63%, 10/15/30(a)(d)		1,087		926,608
				7,211,849
Life Sciences Tools & Services — 0.1%
Agilent Technologies, Inc., 2.30%, 03/12/31		1,315		1,071,276
Machinery — 0.5%
Deere & Co., 2.75%, 04/15/25		215		210,296
IDEX Corp., 2.63%, 06/15/31		4,209		3,487,121
John Deere Capital Corp., 3.40%, 06/06/25		595		592,347
Otis Worldwide Corp.
3.11%, 02/15/40		70		54,196
3.36%, 02/15/50		70		52,923
Terex Corp., 5.00%, 05/15/29(a)(d)		1,385		1,177,250
				5,574,133
Media — 0.6%
Charter Communications Operating LLC/Charter Communications Operating Capital, 4.91%, 07/23/25(d)		1,350		1,353,132
Comcast Corp.
3.38%, 02/15/25		1,590		1,576,456
2.35%, 01/15/27		400		372,863
FactSet Research Systems, Inc.
2.90%, 03/01/27		1,575		1,472,625
3.45%, 03/01/32		775		679,266
Fox Corp., 4.03%, 01/25/24		340		340,029
Thomson Reuters Corp., 3.35%, 05/15/26		800		776,077
Time Warner Cable LLC, 4.50%, 09/15/42		500		390,310
				6,960,758
Metals & Mining — 0.6%
ArcelorMittal SA, 4.25%, 07/16/29(d)		160		151,895
Eldorado Gold Corp., 6.25%, 09/01/29(a)		133		107,190
Freeport-McMoRan, Inc.
4.55%, 11/14/24(d)		1,059		1,053,821
4.63%, 08/01/30(d)		815		756,141
5.40%, 11/14/34		546		532,847

26 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Metals & Mining (continued)
Newmont Corp., 2.25%, 10/01/30	$	695	$	576,888
Nucor Corp., 3.13%, 04/01/32		195		169,496
Reliance Steel & Aluminum Co., 2.15%, 08/15/30		2,075		1,681,217
Rio Tinto Finance USA Ltd., 2.75%, 11/02/51		960		701,830
Southern Copper Corp.
3.88%, 04/23/25		922		909,495
6.75%, 04/16/40		115		129,893
				6,770,713
Multi-Utilities — 0.3%
Atmos Energy Corp.
3.00%, 06/15/27		400		383,359
1.50%, 01/15/31(d)		760		607,922
National Fuel Gas Co., 2.95%, 03/01/31		335		271,908
NiSource, Inc.
3.60%, 05/01/30(d)		60		54,971
3.95%, 03/30/48		310		257,152
5.00%, 06/15/52		20		19,531
Piedmont Natural Gas Co., Inc., 3.50%, 06/01/29(d)		500		465,267
Southern California Gas Co.
Series TT, 2.60%, 06/15/26		800		757,771
Series XX, 2.55%, 02/01/30		730		645,152
Southwest Gas Corp.
3.70%, 04/01/28		230		217,062
2.20%, 06/15/30		85		68,711
Washington Gas Light Co., 3.65%, 09/15/49		30		24,812
				3,773,618
Oil, Gas & Consumable Fuels — 4.0%
Canadian Natural Resources Ltd., 2.95%, 07/15/30		2,673		2,345,238
Cenovus Energy, Inc., 5.38%, 07/15/25		636		654,606
Cheniere Corpus Christi Holdings LLC
5.13%, 06/30/27		2,900		2,910,686
3.70%, 11/15/29		2,996		2,740,447
Cheniere Energy, Inc., 4.63%, 10/15/28		1,250		1,125,713
Chevron Corp.
1.55%, 05/11/25		550		521,513
3.08%, 05/11/50		60		47,709
CNOOC Finance 2015 USA LLC, Series 2015, 3.50%, 05/05/25		600		597,113
CNX Resources Corp., 7.25%, 03/14/27(a)(d)		1,260		1,234,422
ConocoPhillips Co.
3.76%, 03/15/42(a)		1,165		1,019,513
3.80%, 03/15/52		705		603,278
Continental Resources, Inc., 4.38%, 01/15/28		1,200		1,128,000
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp., 6.00%, 02/01/29(a)		3,165		2,761,716
Devon Energy Corp.
4.50%, 01/15/30		412		389,175
7.88%, 09/30/31		290		339,574
7.95%, 04/15/32		393		464,610
5.60%, 07/15/41(d)		925		918,813
5.00%, 06/15/45(d)		655		607,406
Enbridge, Inc.
2.50%, 08/01/33		150		121,224
3.40%, 08/01/51		195		146,568
Energy Transfer LP, 5.00%, 05/15/50		450		382,925
EQT Corp., 7.50%, 02/01/30		470		504,493
Equinor ASA 3.25%, 11/10/24		400		397,574

Security	Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Equinor ASA (continued)
3.25%, 11/18/49	$	500	$	396,451
Exxon Mobil Corp.
2.99%, 03/19/25		2,170		2,136,528
3.45%, 04/15/51(d)		835		682,169
Marathon Oil Corp., 6.60%, 10/01/37		685		724,544
MPLX LP
4.88%, 12/01/24		209		210,425
4.50%, 04/15/38		125		109,596
5.20%, 03/01/47		70		63,456
4.70%, 04/15/48		805		676,708
5.50%, 02/15/49(d)		685		635,354
4.95%, 03/14/52		3,775		3,262,194
4.90%, 04/15/58		340		280,571
Occidental Petroleum Corp.
8.50%, 07/15/27		630		693,265
8.88%, 07/15/30		975		1,119,376
ONEOK Partners LP
3.38%, 10/01/22		1,000		1,000,040
4.90%, 03/15/25		2,000		2,016,665
6.13%, 02/01/41		75		71,408
ONEOK, Inc.
2.75%, 09/01/24		1,475		1,426,245
6.35%, 01/15/31		1,140		1,190,842
7.15%, 01/15/51		80		84,771
Pioneer Natural Resources Co., 2.15%, 01/15/31		150		123,499
Shell International Finance BV
6.38%, 12/15/38		67		77,773
3.00%, 11/26/51		178		133,245
Targa Resources Corp., 4.95%, 04/15/52		190		162,820
Targa Resources Partners LP/Targa Resources Partners Finance Corp.
5.50%, 03/01/30		1,100		1,049,598
4.88%, 02/01/31(d)		910		829,558
4.00%, 01/15/32		3,360		2,875,354
TransCanada PipeLines Ltd., 3.75%, 10/16/23		800		800,846
Transcontinental Gas Pipe Line Co. LLC, 3.95%, 05/15/50		95		78,854
Western Midstream Operating LP, 4.55%, 02/01/30(d)		1,150		994,750
Williams Cos., Inc.
8.75%, 03/15/32		790		984,890
5.10%, 09/15/45		291		271,060
3.50%, 10/15/51		1,215		903,799
				48,028,970
Personal Products — 0.1%
Procter & Gamble Co., 1.20%, 10/29/30		810		661,440
Unilever Capital Corp., 2.00%, 07/28/26(d)		800		752,729
				1,414,169
Pharmaceuticals — 1.3%
AbbVie, Inc.
2.60%, 11/21/24		3,520		3,407,221
4.05%, 11/21/39		50		44,587
4.40%, 11/06/42		135		122,688
4.70%, 05/14/45		145		136,490
4.25%, 11/21/49		410		363,970
AstraZeneca PLC, 3.13%, 06/12/27		990		951,996
Bristol-Myers Squibb Co.
2.55%, 11/13/50		1,070		756,990
3.90%, 03/15/62		55		47,675

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 27

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Pharmaceuticals (continued)
Cigna Corp., 3.75%, 07/15/23	$	444	$	444,964
CVS Health Corp.
3.00%, 08/15/26		75		71,729
4.78%, 03/25/38		265		250,837
5.13%, 07/20/45		185		178,196
5.05%, 03/25/48		315		301,533
Eli Lilly & Co., 2.75%, 06/01/25(d)		378		371,958
Johnson & Johnson
3.63%, 03/03/37		195		184,767
3.70%, 03/01/46(d)		529		486,970
Merck & Co., Inc.
0.75%, 02/24/26		5,085		4,607,404
4.00%, 03/07/49		330		303,605
Novartis Capital Corp., 2.75%, 08/14/50(d)		561		436,742
Pfizer, Inc., 7.20%, 03/15/39		80		104,645
Viatris, Inc.
1.65%, 06/22/25		180		162,946
4.00%, 06/22/50		150		100,438
Zoetis, Inc.
3.00%, 09/12/27		1,800		1,696,547
3.90%, 08/20/28		5		4,840
3.00%, 05/15/50(d)		370		273,515
				15,813,253
Producer Durables: Miscellaneous — 0.5%
Oracle Corp.
2.50%, 04/01/25(d)		4,025		3,824,221
2.95%, 05/15/25(d)		800		765,759
2.88%, 03/25/31		1,545		1,272,945
				5,862,925
Real Estate Management & Development — 0.1%
CBRE Services, Inc., 4.88%, 03/01/26		670		676,546
Road & Rail — 0.2%
Burlington Northern Santa Fe LLC
3.00%, 04/01/25(d)		800		788,116
3.05%, 02/15/51		990		752,900
CSX Corp., 2.60%, 11/01/26(d)		800		751,165
Union Pacific Corp.
3.25%, 08/15/25		400		395,119
3.25%, 02/05/50		90		70,574
2.97%, 09/16/62		315		218,023
3.75%, 02/05/70		40		31,737
				3,007,634
Semiconductors & Semiconductor Equipment — 1.1%
Analog Devices, Inc.
2.95%, 04/01/25		225		220,407
1.70%, 10/01/28		385		337,444
2.80%, 10/01/41(d)		240		188,037
2.95%, 10/01/51(d)		180		137,337
Broadcom, Inc.
3.15%, 11/15/25		198		190,680
4.00%, 04/15/29(a)		1,860		1,723,467
3.50%, 02/15/41(a)		130		98,036
3.75%, 02/15/51(a)		2,035		1,507,663
Flex Ltd., 3.75%, 02/01/26		230		219,478
Intel Corp., 3.40%, 03/25/25		4,490		4,482,701
Jabil, Inc., 1.70%, 04/15/26		1,055		944,641
Micron Technology, Inc. 4.19%, 02/15/27		280		273,289

Security	Par (000)		Value
Semiconductors & Semiconductor Equipment (continued)
Micron Technology, Inc. (continued)
4.66%, 02/15/30	$	640	$	613,733
NXP BV/NXP Funding LLC/NXP USA, Inc., 2.70%, 05/01/25(d)		190		180,519
Qorvo, Inc., 1.75%, 12/15/24(a)		158		147,591
Texas Instruments, Inc.
1.75%, 05/04/30		730		625,924
2.70%, 09/15/51(d)		870		661,303
				12,552,250
Software — 0.3%
Activision Blizzard, Inc., 2.50%, 09/15/50		125		85,606
Electronic Arts, Inc., 2.95%, 02/15/51		250		182,177
Intuit, Inc.
0.95%, 07/15/25(d)		100		92,076
1.65%, 07/15/30		1,116		916,343
Microsoft Corp.
2.53%, 06/01/50		325		239,371
3.04%, 03/17/62		365		282,921
Oracle Corp., 3.95%, 03/25/51		300		220,349
Roper Technologies, Inc., 3.65%, 09/15/23		310		310,428
ServiceNow, Inc., 1.40%, 09/01/30		1,942		1,519,662
				3,848,933
Technology Hardware, Storage & Peripherals — 1.5%
Adobe, Inc., 2.15%, 02/01/27		2,090		1,953,696
Apple, Inc.
3.00%, 06/20/27		925		904,362
1.40%, 08/05/28		850		743,742
2.70%, 08/05/51(d)		890		663,789
2.55%, 08/20/60		95		65,058
2.85%, 08/05/61		450		326,061
Dell International LLC/EMC Corp.
5.85%, 07/15/25		230		237,200
8.10%, 07/15/36		127		148,245
3.38%, 12/15/41(a)		55		39,292
8.35%, 07/15/46(d)		55		68,493
3.45%, 12/15/51(a)(d)		70		47,361
Dell, Inc., 6.50%, 04/15/38		20		20,150
HP, Inc.
2.20%, 06/17/25(d)		1,030		973,366
1.45%, 06/17/26(d)		2,410		2,140,834
3.00%, 06/17/27(d)		1,250		1,155,675
4.00%, 04/15/29		2,705		2,534,277
3.40%, 06/17/30		365		318,366
2.65%, 06/17/31		5,341		4,290,417
6.00%, 09/15/41(d)		494		498,929
NetApp, Inc., 2.38%, 06/22/27(d)		165		149,983
				17,279,296
Textiles, Apparel & Luxury Goods — 0.0%
NIKE, Inc.
2.40%, 03/27/25		245		238,589
3.25%, 03/27/40		305		261,192
				499,781
Tobacco — 1.3%
Altria Group, Inc.
4.80%, 02/14/29		2,415		2,294,666
2.45%, 02/04/32		1,880		1,415,881
5.80%, 02/14/39		1,127		1,024,195
4.45%, 05/06/50		215		154,811

28 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Tobacco (continued)
Altria Group, Inc. (continued)
3.70%, 02/04/51	$	430	$	274,835
4.00%, 02/04/61(d)		365		237,826
BAT Capital Corp.
2.26%, 03/25/28		449		376,144
4.91%, 04/02/30		673		625,067
2.73%, 03/25/31(d)		1,760		1,393,926
4.39%, 08/15/37		510		404,578
3.73%, 09/25/40		125		87,649
4.54%, 08/15/47		560		410,595
4.76%, 09/06/49		335		252,585
Philip Morris International, Inc.
0.88%, 05/01/26		2,670		2,368,122
2.10%, 05/01/30		670		548,856
6.38%, 05/16/38(d)		2,010		2,100,729
4.25%, 11/10/44		1,020		829,309
Reynolds American, Inc., 5.85%, 08/15/45		420		352,419
				15,152,193
Transportation Infrastructure — 0.2%
United Parcel Service, Inc., 5.30%, 04/01/50(d)		1,725		1,895,663
Utilities — 0.2%
American Water Capital Corp., 2.80%, 05/01/30		270		242,081
Essential Utilities, Inc.
3.57%, 05/01/29		630		588,210
2.70%, 04/15/30		380		330,493
Vistra Operations Co. LLC, 5.00%, 07/31/27(a)(d)		1,250		1,136,387
				2,297,171
Wireless Telecommunication Services — 1.0%
America Movil SAB de CV, 6.13%, 03/30/40		1,090		1,203,633
American Tower Corp., 1.30%, 09/15/25		680		615,620
Crown Castle International Corp.
3.20%, 09/01/24		625		612,096
1.35%, 07/15/25		2,205		2,015,480
2.50%, 07/15/31		450		368,231
GLP Capital LP/GLP Financing II, Inc.
5.75%, 06/01/28		1,145		1,118,436
5.30%, 01/15/29		2,545		2,430,757
Rogers Communications, Inc.(a)
3.20%, 03/15/27		520		493,224
3.80%, 03/15/32		660		603,511
4.50%, 03/15/42		650		577,419
4.55%, 03/15/52		510		447,860
T-Mobile USA, Inc., 3.50%, 04/15/25		25		24,451
Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC, 6.50%, 02/15/29(a)		1,465		1,073,113
				11,583,831
Total Corporate Bonds — 37.3% (Cost: $491,241,132)				441,203,619
Foreign Agency Obligations
Indonesia — 0.0%
Indonesia Government International Bond, 4.75%, 07/18/47(a)		500		458,375
Israel — 0.0%
State of Israel, 3.38%, 01/15/50		390		316,217

Security	Par (000)		Value
Mexico — 0.2%
Mexico Government International Bond
4.15%, 03/28/27	$	1,145	$	1,128,397
6.05%, 01/11/40		100		98,206
4.50%, 01/31/50		340		264,201
3.77%, 05/24/61		735		475,821
				1,966,625
Panama — 0.0%
Panama Government International Bond, 3.87%, 07/23/60(d)		830		588,937
Peru — 0.1%
Peruvian Government International Bond, 3.55%, 03/10/51		900		670,950
Philippines — 0.0%
Philippine Government International Bond, 2.65%, 12/10/45		200		137,022
Uruguay — 0.1%
Uruguay Government International Bond
5.10%, 06/18/50		1,000		1,003,000
4.98%, 04/20/55		50		49,291
				1,052,291
Total Foreign Agency Obligations — 0.4% (Cost: $6,305,069)				5,190,417
Municipal Bonds
California — 0.3%
Bay Area Toll Authority, RB, BAB
Series F-2, 6.26%, 04/01/49		250		319,523
Series S-1, 6.92%, 04/01/40		50		63,095
Bay Area Toll Authority, Refunding RB, Series F-3, 3.13%, 04/01/55		540		421,198
California State University, Refunding RB, Series B, 2.98%, 11/01/51		595		460,994
Regents of the University of California Medical
Center Pooled Revenue, RB
Series N, 3.01%, 05/15/50		120		90,475
Series N, 3.71%, 05/15/2120		85		62,198
State of California, GO, BAB
7.55%, 04/01/39		525		713,668
7.60%, 11/01/40		300		415,786
State of California, Refunding GO, 3.50%, 04/01/28		500		494,777
University of California, RB, Series AD, 4.86%, 05/15/2112		115		108,573
University of California, Refunding RB, Series J, 4.13%, 05/15/45		150		139,839
				3,290,126
District of Columbia — 0.0%
District of Columbia Water & Sewer Authority, Refunding RB, Series D, Subordinate Lien,
3.21%, 10/01/48		200		153,130
Florida — 0.0%
State Board of Administration Finance Corp., RB,
Series A, 2.15%, 07/01/30		119		103,446
Illinois — 0.1%
Chicago O’Hare International Airport, ARB,
Series C, Senior Lien, 4.47%, 01/01/49(d)		310		311,466

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 29

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Illinois (continued)
Sales Tax Securitization Corp., Refunding RB,
Series B, 2nd Lien, 3.24%, 01/01/42	$	140	$	117,654
State of Illinois, GO, 5.10%, 06/01/33		255		256,107
				685,227
Louisiana — 0.0%
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Class A-4, 4.48%, 08/01/39		65		62,821
Maryland — 0.0%
Maryland Health & Higher Educational Facilities Authority, Refunding RB
Series D, 3.05%, 07/01/40		115		91,176	��
Series D, 3.20%, 07/01/50		80		60,473
				151,649
Massachusetts — 0.0%
Commonwealth of Massachusetts, GO, Series H, 2.90%, 09/01/49		295		231,768
Michigan — 0.0%
University of Michigan, RB
Series A, 3.50%, 04/01/52		38		34,040
Series A, 4.45%, 04/01/2122		69		63,215
Series B, 3.50%, 04/01/52		67		59,290
University of Michigan, Refunding RB, Series C, 3.60%, 04/01/47		238		220,322
				376,867
New Jersey — 0.1%
New Jersey Turnpike Authority, RB, BAB, Series A, 7.10%, 01/01/41		550		711,015
New York — 0.1%
Metropolitan Transportation Authority, RB, BAB, 6.81%, 11/15/40		355		430,940
New York City Municipal Water Finance Authority, Refunding RB, 5.88%, 06/15/44		250		301,499
New York City Transitional Finance Authority Future Tax Secured Revenue, RB, BAB, 5.51%, 08/01/37		110		121,137
New York State Dormitory Authority, Refunding RB, Series B, 3.14%, 07/01/43		255		213,835
Port Authority of New York & New Jersey, ARB, Consolidated, 192nd Series, 4.81%, 10/15/65		50		51,802
Port Authority of New York & New Jersey, RB, 191th Series, 4.82%, 06/01/45		200		201,215
Port Authority of New York & New Jersey, Refunding ARB, 210th Series, 4.03%, 09/01/48		500		465,472
				1,785,900
Pennsylvania — 0.0%
Pennsylvania State University, Refunding RB,
Series D, 2.84%, 09/01/50		80		62,426
Texas — 0.2%
Board of Regents of the University of Texas System, Refunding RB, Series B, 2.44%, 08/15/49		405		285,875
Dallas Area Rapid Transit, Refunding RB, Series A,
Senior Lien, 2.61%, 12/01/48		425		315,180
Dallas Fort Worth International Airport, Refunding
RB, 2.84%, 11/01/46		260		199,339

Security	Par (000)		Value
Texas (continued)
Grand Parkway Transportation Corp., Refunding RB, Subordinate, 3.24%, 10/01/52	$	400	$	321,155
Texas Transportation Commission State Highway Fund, Refunding RB, 4.00%, 10/01/33		690		686,236
Texas Transportation Commission, Refunding GO, 2.47%, 10/01/44		465		348,232
				2,156,017
Virginia — 0.0%
University of Virginia, Refunding RB, Series U, 2.58%, 11/01/51		60		43,474
Total Municipal Bonds — 0.8% (Cost: $11,564,167)				9,813,866
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 9.0%
American Home Mortgage Investment Trust, Series 2004-3, Class 4A, (6 mo. LIBOR US + 1.50%), 2.88%, 10/25/34(b)		12		12,277
Citicorp Mortgage Securities Trust, Series 2006-1, Class 2A1, 5.00%, 11/25/48		2		2,436
Citigroup Mortgage Loan Trust(a)(b)
Series 2013-A, Class A, 3.00%, 05/25/42		5		5,138
Series 2014-A, Class A, 4.00%, 01/25/35		36		34,154
Connecticut Avenue Securities Trust(a)(b)
Series 2018-R07, Class 1M2, (1 mo. LIBOR US + 2.40%), 4.02%, 04/25/31		1,423		1,416,876
Series 2019-R01, Class 2M2, (1 mo. LIBOR US + 2.45%), 4.07%, 07/25/31		1,150		1,143,360
Series 2019-R02, Class 1M2, (1 mo. LIBOR US + 2.30%), 3.92%, 08/25/31		2,506		2,506,085
Series 2019-R03, Class 1M2, (1 mo. LIBOR US + 2.15%), 3.77%, 09/25/31		1,780		1,776,529
Series 2019-R06, Class 2M2, (1 mo. LIBOR US + 2.10%), 3.72%, 09/25/39		571		568,729
Series 2019-R07, Class 1M2, (1 mo. LIBOR US + 2.10%), 3.72%, 10/25/39		586		581,303
Series 2021-R01, Class 1M1, (30 day SOFR + 0.75%), 1.68%, 10/25/41		2,812		2,784,706
Series 2021-R01, Class 1M2, (30 day SOFR + 1.55%), 2.48%, 10/25/41		3,040		2,819,674
Series 2021-R03, Class 1M2, (30 day SOFR + 1.65%), 2.58%, 12/25/41		2,780		2,475,504
Series 2022-R01, Class 1M1, (30 day SOFR + 1.00%), 1.93%, 12/25/41		6,180		6,048,259
Series 2022-R01, Class 1M2, (30 day SOFR + 1.90%), 2.83%, 12/25/41		3,325		2,995,358
Series 2022-R02, Class 2M1, (30 day SOFR + 1.20%), 2.13%, 01/25/42		5,597		5,447,954
Credit Suisse First Boston Mortgage Securities Corp., Series 2004-6, Class 3A1, 5.00%, 09/25/19		5		3,122
Fannie Mae, Series 2017-C03, Class 1ED1, (1 mo. LIBOR US + 0.70%), 2.32%, 10/25/29(b)		3,570		3,567,062
Fannie Mae Connecticut Avenue Securities(b)
Series 2017-C01, Class 1M2, (1 mo. LIBOR US + 3.55%), 5.17%, 07/25/29		744		759,547
Series 2017-C05, Class 1EB3, (1 mo. LIBOR US + 1.20%), 2.82%, 01/25/30		2,604		2,603,208

30 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Collateralized Mortgage Obligations (continued)
Fannie Mae Connecticut Avenue Securities(b) (continued)
Series 2017-C05, Class 1M2, (1 mo. LIBOR US + 2.20%), 3.82%, 01/25/30	$	6,010	$	6,035,812
Series 2017-C07, Class 2M2, (1 mo. LIBOR US + 2.50%), 4.12%, 05/25/30		7,092		7,074,840
Series 2018-C01, Class 1ED2, (1 mo. LIBOR US + 0.85%), 2.47%, 07/25/30		709		704,785
Series 2018-C01, Class 1M2, (1 mo. LIBOR US + 2.25%), 3.87%, 07/25/30		6,372		6,371,963
Series 2018-C01, Class 1M2C, (1 mo. LIBOR US + 2.25%), 3.87%, 07/25/30		2,150		2,161,490
Series 2018-C03, Class 1M2, (1 mo. LIBOR US + 2.15%), 3.77%, 10/25/30		883		886,939
Series 2021-R02, Class 2M1, (30 day SOFR + 0.90%), 1.83%, 11/25/41(a)		1,098		1,072,900
Freddie Mac(b)
Series 2017-HQA2, Class M2, (1 mo. LIBOR US + 2.65%), 4.27%, 12/25/29		749		744,438
Series 2020-HQA3, Class M2, (1 mo. LIBOR US + 3.60%), 5.22%, 07/25/50(a)		507		506,920
Series 2021-DNA3, Class M1, (30 day SOFR + 0.75%), 1.68%, 10/25/33(a)		436		428,959
Series 2021-DNA3, Class M2, (30 day SOFR + 2.10%), 3.03%, 10/25/33(a)		670		619,572
Series 2021-DNA6, Class M1, (30 day SOFR + 0.80%), 1.73%, 10/25/41(a)		4,090		4,007,182
Series 2021-DNA6, Class M2, (30 day SOFR + 1.50%), 2.43%, 10/25/41(a)		3,830		3,496,411
Series 2021-DNA7, Class M2, (30 day SOFR + 1.80%), 2.73%, 11/25/41(a)		2,400		2,161,405
Series 2021-HQA2, Class M1, (30 day SOFR + 0.70%), 1.63%, 12/25/33(a)		2,077		2,054,408
Freddie Mac STACR REMIC Trust(a)(b)
Series 2020-DNA1, Class M2, (1 mo. LIBOR US + 1.70%), 3.32%, 01/25/50		4,637		4,584,415
Series 2020-DNA4, Class M2B, (1 mo. LIBOR US + 3.75%), 5.37%, 08/25/50		949		949,438
Series 2020-DNA6, Class M1, (30 day SOFR + 0.90%), 1.83%, 12/25/50		9		9,093
Series 2020-HQA4, Class M2, (1 mo. LIBOR US + 3.15%), 4.77%, 09/25/50		318		317,611
Series 2021-DNA5, Class M2, (30 day SOFR + 1.65%), 2.58%, 01/25/34		1,861		1,794,669
Series 2022-HQA1, Class M1A, (30 day SOFR + 2.10%), 3.03%, 03/25/42		1,353		1,340,979
Series 2022-HQA1, Class M1B, (30 day SOFR + 3.50%), 4.43%, 03/25/42		350		334,227
Freddie Mac Structured Agency Credit Risk Debt Notes(b)
Series 2016-DNA1, Class M3, (1 mo. LIBOR US + 5.55%), 7.17%, 07/25/28		922		964,273
Series 2017-DNA1, Class M2, (1 mo. LIBOR US + 3.25%), 4.87%, 07/25/29		5,492		5,533,112
Series 2017-HQA3, Class M2, (1 mo. LIBOR US + 2.35%), 3.97%, 04/25/30		4,558		4,550,216
Series 2020-HQA5, Class M2, (30 day SOFR + 2.60%), 3.53%, 11/25/50(a)		5,258		5,225,181

Security	Par (000)		Value
Collateralized Mortgage Obligations (continued)
Freddie Mac Structured Agency Credit Risk Debt Notes(b) (continued)
Series 2021-DNA2, Class M1, (30 day SOFR + 0.80%), 1.73%, 08/25/33(a)	$	1,509	$	1,498,821
STACR Trust(a)(b)
Series 2018-HRP1, Class M2, (1 mo. LIBOR US + 1.65%), 3.27%, 04/25/43		2,077		2,061,591
Series 2018-HRP1, Class M2B, (1 mo. LIBOR US + 1.65%), 3.27%, 04/25/43		613		610,652
Series 2018-HRP2, Class M2, (1 mo. LIBOR US + 1.25%), 2.87%, 02/25/47		177		176,940
				105,830,523
Commercial Mortgage-Backed Securities — 4.1%
Bank
Class A3, 3.97%, 09/15/60		2,800		2,747,767
Series 2019-BN23, Class A3, 2.92%, 12/15/52		2,230		2,031,522
Barclays Commercial Mortgage Trust, Class A3, 3.32%, 05/15/52		1,120		1,049,227
BBCMS Mortgage Trust, Series 2020-C8,
Class A5, 2.04%, 10/15/53		2,376		2,002,034
Benchmark Mortgage Trust
Class A4, 4.26%, 10/10/51		870		867,194
Class A4, 3.72%, 03/15/62		2,390		2,303,661
Series 2018-B5, Class A4, 4.21%, 07/15/51		1,290		1,281,502
Series 2019-B15, Class A5, 2.93%, 12/15/72		2,050		1,868,699
Series 2020-B20, Class A5, 2.03%, 10/15/53		2,220		1,872,285
Citigroup Commercial Mortgage Trust
Series 2006-C5, Class AJ, 5.48%, 10/15/49		10		6,880
Series 2016-GC36, Class A5, 3.62%, 02/10/49		550		538,843
Series 2017-P8, Class AS, 3.79%, 09/15/50(b)		2,090		1,990,982
Commercial Mortgage Trust
Class A3, 3.51%, 09/10/50		1,290		1,243,600
Class A4, 3.50%, 02/10/49		2,485		2,420,003
Series 2013-CR11, Class B, 5.28%, 08/10/50(b)		380		380,393
Series 2013-LC6, Class AM, 3.28%, 01/10/46		400		398,312
Series 2014-CR17, Class A5, 3.98%, 05/10/47		670		664,957
Eleven Madison Trust Mortgage Trust, Series 2015-11MD, Class A, 3.67%, 09/10/35(a)(b)		150		144,931
GS Mortgage Securities Trust
Series 2013-GC13, Class A5, 4.17%, 07/10/46(b)		170		169,767
Series 2014-GC20, Class A5, 4.00%, 04/10/47		730		725,125
Series 2015-GC30, Class B, 4.16%, 05/10/50(b)		300		289,143
Series 2015-GS1, Class A3, 3.73%, 11/10/48		2,030		1,996,679
JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-CB16, Class B, 5.67%, 05/12/45(b)(c)		210		10,823
JPMBB Commercial Mortgage Securities Trust
Series 2013-C14, Class A4, 4.13%, 08/15/46(b)		324		323,495
Series 2013-C17, Class A3, 3.93%, 01/15/47		1,144		1,124,788
Series 2014-C25, Class AS, 4.07%, 11/15/47		2,180		2,134,619
Series 2016-C1, Class A5, 3.58%, 03/17/49		810		790,242
JPMDB Commercial Mortgage Securities Trust,
Class A5, 3.69%, 03/15/50		1,160		1,130,985
Morgan Stanley Bank of America Merrill Lynch Trust
Series 2013-C13, Class A4, 4.04%, 11/15/46		460		457,490
Series 2013-C9, Class A4, 3.10%, 05/15/46		2,270		2,247,367

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 31

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Morgan Stanley Capital I Trust
Series 2015-MS1, Class A4, 3.78%, 05/15/48(b)	$	550	$	541,977
Series 2015-UBS8, Class A3, 3.54%, 12/15/48		2,879		2,803,627
Series 2019-L3, Class AS, 3.49%, 11/15/52		970		894,104
Series 2020-L4, Class A3, 2.70%, 02/15/53		3,070		2,734,292
Wells Fargo Commercial Mortgage Trust
Series 2014-LC18, Class AS, 3.81%, 12/15/47		510		493,045
Series 2015-C26, Class AS, 3.58%, 02/15/48		1,380		1,345,892
Series 2020-C56, Class A5, 2.45%, 06/15/53		1,980		1,727,817
WFRBS Commercial Mortgage Trust
Series 2012-C10, Class AS, 3.24%, 12/15/45		460		456,250
Series 2012-C8, Class AS, 3.66%, 08/15/45		439		437,855
Series 2013-C18, Class A5, 4.16%, 12/15/46(b)		620		617,558
Series 2014-C23, Class A4, 3.65%, 10/15/57		273		270,130
Series 2014-C23, Class AS, 4.21%, 10/15/57(b)		1,140		1,126,647
				48,662,509
Mortgage-Backed Securities — 0.1%
Freddie Mac STACR REMIC Trust, Series 2021-HQA1, Class M1, (30 day SOFR + 0.70%), 1.63%, 08/25/33(a)(b)		1,346		1,335,644
Total Non-Agency Mortgage-Backed Securities — 13.2% (Cost: $163,573,493)				155,828,676
U.S. Government Sponsored Agency Securities
Collateralized Mortgage Obligations(b) — 1.9%
Fannie Mae Connecticut Avenue Securities
Series 2016-C05, Class 2M2, (1 mo. LIBOR US + 4.45%), 6.07%, 01/25/29		229		238,803
Series 2017-C03, Class 1M2, (1 mo. LIBOR US + 3.00%), 4.62%, 10/25/29		6,031		6,084,503
Freddie Mac STACR REMIC Trust(a)
Series 2019-HQA4, Class M2, (1 mo. LIBOR US + 2.05%), 3.67%, 11/25/49		868		862,096
Series 2020-DNA4, Class M2, (1 mo. LIBOR US + 3.75%), 5.37%, 08/25/50		149		148,387
Series 2020-HQA1, Class M2, (1 mo. LIBOR US + 1.90%), 3.52%, 01/25/50		1,734		1,703,129
Freddie Mac STACR Trust(a)
Series 2019-DNA3, Class M2, (1 mo. LIBOR US + 2.05%), 3.67%, 07/25/49		4,158		4,134,669
Series 2019-DNA4, Class M2, (1 mo. LIBOR US + 1.95%), 3.57%, 10/25/49		1,176		1,165,519
Series 2019-FTR2, Class M1, (1 mo. LIBOR US + 0.95%), 2.57%, 11/25/48		2,462		2,411,381
Series 2019-HQA3, Class M2, (1 mo. LIBOR US + 1.85%), 3.47%, 09/25/49		5,211		5,126,799
Freddie Mac Structured Agency Credit Risk Debt Notes, Series 2016-DNA2, Class M3, (1 mo. LIBOR US + 4.65%), 6.27%, 10/25/28		1,040		1,071,848
				22,947,134
Mortgage-Backed Securities — 33.0%
Fannie Mae
Series 2013-M3, Class A2, 2.51%, 11/25/22(b)		1,050		1,047,084
Series 2014-M3, Class A2, 3.50%, 01/25/24(b)		715		714,410
Series 2016-M13, Class A2, 2.58%, 09/25/26(b)		743		715,864
Series 2018-M1, Class A2, 3.09%, 12/25/27(b)		1,281		1,244,875
Series 2018-M7, Class A2, 3.14%, 03/25/28(b)		1,551		1,518,184
Series 2018-M8, Class A2, 3.41%, 06/25/28(b)		3,411		3,376,367

Security	Par (000)			Value
Mortgage-Backed Securities (continued)
Fannie Mae (continued)
Series 2020-M42, Class A2, 1.27%, 07/25/30	$	4,980		$	4,148,558
Fannie Mae Mortgage-Backed Securities
3.00%, 02/01/47		74			70,825
4.00%, 02/01/47 - 02/01/57		1,306			1,300,339
3.50%, 11/01/51		3,797			3,750,585
2.00%, 01/01/52		4,905			4,280,292
(11th District Cost of Funds + 1.25%), 1.63%, 09/01/34(b)		85			82,169
(12 mo. LIBOR US + 1.40%), 2.15%, 04/01/35(b)		27			26,460
(12 mo. LIBOR US + 1.53%), 3.17%, 05/01/43(b)		19			19,376
(12 mo. LIBOR US + 1.54%), 3.38%, 06/01/43(b)		33			34,016
(12 mo. LIBOR US + 1.71%), 3.08%, 04/01/40(b)		3			2,969
(12 mo. LIBOR US + 1.75%), 2.00%, 08/01/41(b)		24			24,593
(12 mo. LIBOR US + 1.78%), 2.07%, 01/01/42(b)		7			7,046
(12 mo. LIBOR US + 1.81%), 2.24%, 02/01/42(b)		1			1,001
(12 mo. LIBOR US + 1.82%), 2.07%, 09/01/41(b)		22			22,601
(6 mo. LIBOR US + 1.04%), 2.16%, 05/01/33(b)		3			3,104
(6 mo. LIBOR US + 1.36%), 1.90%, 10/01/32(b)		10			10,273
Freddie Mac
Series K031, Class A2, 3.30%, 04/25/23(b)		281			280,958
Series K055, Class A2, 2.67%, 03/25/26		1,590			1,547,738
Series K060, Class A2, 3.30%, 10/25/26		1,190			1,181,860
Series K061, Class A2, 3.35%, 11/25/26(b)		1,590			1,588,959
Series K072, Class A2, 3.44%, 12/25/27		1,190			1,184,748
Series K076, Class A2, 3.90%, 04/25/28		2,390			2,434,481
Series K115, Class A2, 1.38%, 06/25/30		2,840			2,409,031
Freddie Mac Mortgage-Backed Securities
5.00%, 07/01/23 - 03/01/48		396			414,939
4.50%, 05/01/24 - 01/01/49		1,233			1,259,282
4.00%, 10/01/24 - 01/01/49		4,433			4,465,672
3.50%, 04/01/26 - 04/01/49		6,743			6,617,401
2.50%, 02/01/27		476			468,280
3.00%, 05/01/27 - 10/01/47		5,665			5,418,355
6.00%, 11/01/28 - 04/01/38		246			265,864
6.50%, 06/01/29 - 08/01/36		241			268,048
7.50%, 12/01/30		—	(e)		359
5.50%, 05/01/33 - 08/01/38		568			601,392
(1 year CMT + 2.34%), 2.83%, 04/01/32(b)		23			22,341
(11th District Cost of Funds + 1.25%), 1.55%, 11/01/27(b)		42			40,802
(12 mo. LIBOR US + 1.50%), 3.25%, 06/01/43(b)		2			2,264
(12 mo. LIBOR US + 1.60%), 2.38%, 08/01/43(b)		9			9,694
(12 mo. LIBOR US + 1.65%), 2.46%, 05/01/43(b)		38			38,422
(12 mo. LIBOR US + 1.73%), 2.00%, 08/01/41(b)		21			21,571
(12 mo. LIBOR US + 1.75%), 2.92%, 04/01/38(b)		47			46,876
(12 mo. LIBOR US + 1.75%), 2.19%, 02/01/40(b)		20			20,396

32 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)		Value
Mortgage-Backed Securities (continued)
Freddie Mac Mortgage-Backed Securities (continued)
(12 mo. LIBOR US + 1.79%), 2.04%, 09/01/32(b)	$	2	$	1,699
(12 mo. LIBOR US + 1.89%), 2.35%, 07/01/41(b)		12		12,695
(12 mo. LIBOR US + 1.90%), 2.15%, 01/01/42(b)		1		715
Freddie Mac Multifamily Structured Pass-Through Certificates, Series K025, Class A2, 2.68%, 10/25/22.		3,699		3,698,332
Ginnie Mae Mortgage-Backed Securities
2.00%, 07/21/22 - 12/20/51(f)(g)		19,169		17,052,630
2.50%, 07/21/22 - 11/20/51(f)		17,347		15,866,561
3.00%, 07/21/22 - 10/20/51(f)		15,058		14,319,430
3.50%, 07/21/22 - 04/20/48(f)		11,943		11,743,944
4.50%, 07/21/22 - 08/20/49(f)		2,062		2,116,364
6.50%, 06/15/28 - 07/15/38		54		58,741
7.50%, 08/20/30		2		2,328
6.00%, 01/15/32 - 10/20/38		130		141,201
5.00%, 11/20/33 - 05/20/49		1,131		1,193,478
5.50%, 06/15/34 - 04/20/48		426		458,815
4.00%, 09/15/40 - 09/15/49		5,491		5,531,170
Uniform Mortgage-Backed Securities
2.00%, 07/14/22 - 03/01/52(f)		99,711		88,333,833
2.50%, 07/14/22 - 03/01/52(f)		69,767		63,572,070
3.00%, 07/14/22 - 01/01/52(f)		36,937		34,900,123
3.50%, 07/14/22 - 06/01/49(f)		16,412		16,107,402
4.00%, 07/14/22 - 03/01/51(f)		37,087		36,719,144
4.50%, 07/14/22 - 05/01/49(f)		6,972		7,067,166
1.50%, 07/18/22 - 11/01/51(f)		14,611		12,734,148
6.00%, 11/01/22 - 09/01/38		539		578,912
5.00%, 01/01/24 - 04/01/49		2,098		2,189,896
7.50%, 09/01/29		2		1,895
6.50%, 12/01/30 - 01/01/36		459		487,425
7.00%, 01/01/32 - 06/01/32		16		17,242
5.50%, 10/01/32 - 01/01/47		2,027		2,166,618
				390,084,701
Total U.S. Government Sponsored Agency Securities — 34.9% (Cost: $439,159,734)				413,031,835
Total Long-Term Investments — 98.0% (Cost: $1,251,671,445)				1,160,435,163
	Shares
Short-Term Securities
Money Market Funds — 11.9%
BlackRock Cash Funds: Institutional, SL Agency Shares, 1.64%(h)(i)(j)		140,585,730		140,571,671
BlackRock Cash Funds: Treasury, SL Agency Shares, 1.38%(h)(i)		100,000		100,000
Total Short-Term Securities — 11.9% (Cost: $140,671,286)				140,671,671
Total Investments Before TBA Sale Commitments — 109.9% (Cost: $1,392,342,731)				1,301,106,834

Security	Par (000)			Value
TBA Sale Commitments(f)
Mortgage-Backed Securities — (2.2)%
Ginnie Mae Mortgage-Backed Securities, 3.00%, 07/21/52	$	(375	)	$	(353,467	)
Uniform Mortgage-Backed Securities
2.00%, 07/18/37 - 07/14/52		(7,000	)		(6,205,000	)
2.50%, 07/14/52		(19,650	)		(17,668,113	)
3.00%, 07/14/52		(1,250	)		(1,163,965	)
3.50%, 07/14/52		(200	)		(192,328	)
4.00%, 07/14/52		(500	)		(493,037	)
Total TBA Sale Commitments — (2.2)% (Proceeds: $(26,235,828))					(26,075,910	)
Total Investments, Net of TBA Sale Commitments — 107.7% (Cost: $1,366,106,903)					1,275,030,924
Liabilities in Excess of Other Assets — (7.7)%					(90,802,808	)
Net Assets — 100.0%				$	1,184,228,116

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

^(d)  All or a portion of this security is on loan.

^(e)  Rounds to less than 1,000.

^(f)  Represents or includes a TBA transaction.

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

^(h)  Affiliate of the Master Portfolio.

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

^(j)  All or a portion of this security was purchased with the cash collateral from loaned securities.

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 33

Schedule of Investments  (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio

Affiliates

Investments in issuers considered to be affiliate(s) of the Master Portfolio during the six months ended June 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Issuer	Value at 12/31/21		Purchases at Cost			Proceeds from Sales			Net Realized Gain (Loss)				Change in Unrealized Appreciation (Depreciation)				Value at 06/30/22		Shares Held at 06/30/22		Income			Capital Gain Distributions from Underlying Funds
BlackRock Cash Funds: Institutional, SL Agency Shares	$	67,351,856	$	73,268,718	(a)		$	—		$	(37,334	)		$	(11,569	)	$	140,571,671		140,585,730	$	176,567	(b)		$	—
BlackRock Cash Funds: Treasury, SL Agency Shares		100,000		—				—			—				—			100,000		100,000		192				—
										$	(37,334	)		$	(11,569	)	$	140,671,671			$	176,759			$	—

^(a)  Represents net amount purchased (sold).

^(b)  All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro Bund		7		09/08/22	$	1,091	$	(1,384	)
10-Year Australian Treasury Bonds		685		09/15/22		56,216		1,240,283
10-Year U.S. Treasury Note.		544		09/21/22		64,388		259,233
10-Year U.S. Ultra Long Treasury Note		73		09/21/22		9,276		(51,124	)
U.S. Long Bond		484		09/21/22		66,837		(1,387,500	)
Ultra U.S. Treasury Bond		371		09/21/22		57,262		574,289
5-Year U.S. Treasury Note		801		09/30/22		89,812		366,073
								999,870
Short Contracts
Euro BTP		25		09/08/22	��	3,226		26,468
Euro OAT		98		09/08/22		14,227		299,286
10-Year Canadian Bond		103		09/20/22		9,922		(81,984	)
Long Gilt		200		09/28/22		27,750		(587,980	)
2-Year U.S. Treasury Note		165		09/30/22		34,624		(48,576	)
								(392,786	)
							$	607,084

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	71,152	AUD	100,000	Bank of America N.A.		09/15/22	$	2,085
USD	69,785	AUD	100,000	Morgan Stanley & Co. International PLC		09/15/22		718
USD	221,995	AUD	320,000	Morgan Stanley & Co. International PLC		09/15/22		981
USD	103,998	AUD	150,000	Royal Bank of Canada		09/15/22		398
USD	495,021	AUD	710,000	Royal Bank of Canada		09/15/22		4,647
USD	84,771	EUR	80,000	Bank of America N.A.		09/15/22		507
USD	566,918	GBP	460,000	JPMorgan Chase Bank N.A.		09/15/22		6,193
USD	122,226	GBP	100,000	Morgan Stanley & Co. International PLC		09/15/22		329
USD	332,990	GBP	270,000	Natwest Markets PLC		09/15/22		3,868
USD	172,476	GBP	140,000	Standard Chartered Bank		09/15/22		1,820
USD	5,425,064	AUD	7,690,000	Bank of America N.A.		09/21/22		113,582
USD	1,724,570	CAD	2,207,242	Bank of America N.A.		09/21/22		9,557

34 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	8,556,429	EUR	8,090,000	Bank of America N.A.		09/21/22	$	31,331
USD	1,504,954	SEK	15,040,000	Bank of America N.A.		09/21/22		29,913
								205,929
USD	262,248	CAD	340,000	Morgan Stanley & Co. International PLC		09/15/22		(1,931	)
USD	316,126	CAD	410,000	Morgan Stanley & Co. International PLC		09/15/22		(2,443	)
USD	388,006	EUR	370,000	HSBC Bank USA N.A.		09/15/22		(1,718	)
USD	205,904	GBP	170,000	HSBC Bank USA N.A.		09/15/22		(1,321	)
USD	83,005	HKD	650,000	HSBC Bank USA N.A.		09/15/22		(6	)
AUD	5,084,110	USD	3,586,687	Bank of America N.A.		09/21/22		(75,093	)
AUD	3,993,118	USD	2,780,823	BNP Paribas S.A.		09/21/22		(22,777	)
CAD	810,000	USD	632,872	Bank of America N.A.		09/21/22		(3,507	)
EUR	6,434,084	USD	6,805,041	Bank of America N.A.		09/21/22		(24,918	)
EUR	1,200,000	USD	1,270,036	Standard Chartered Bank		09/21/22		(5,497	)
GBP	110,000	USD	135,859	Bank of America N.A.		09/21/22		(1,755	)
SEK	14,517,899	USD	1,452,711	Bank of America N.A.		09/21/22		(28,875	)
USD	407,378	HKD	3,190,000	Bank of America N.A.		09/21/22		(64	)
								(169,905	)
							$	36,024

Centrally Cleared Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Master Portfolio			Payment Frequency		Termination Date			Notional Amount (000)			Value		Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
CDX.NA.HY.38.V2		5.00	%		Quarterly		06/20/27			USD	51,199	$	1,426,816	$	450,162		$	976,654
CDX.NA.IG.38.V1.		1.00			Quarterly		06/20/27			USD	176,700		2,029		(754,261	)		756,290
												$	1,428,845	$	(304,099	)	$	1,732,944
								��

Centrally Cleared Inflation Swaps

Paid by the Master Portfolio		Received by the Master Portfolio		Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Reference	Frequency	Rate	Frequency
2.07%	Monthly	Eurostat Eurozone HICP Ex Tobacco Unrevised Series NSA Index	Monthly		02/15/32		EUR	2,635	$	193,045		$	62	$	192,983
2.74%	Monthly	Eurostat Eurozone HICP Ex Tobacco Unrevised Series NSA Index	Monthly		06/15/32		EUR	2,630		(94,676	)		59		(94,735	)
									$	98,369		$	121	$	98,248

Centrally Cleared Interest Rate Swaps

Paid by the Master Portfolio		Received by the Master Portfolio		Effective Date		Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
6-Month EURIBOR, 0.26%	Semi-Annual	1.55%	Annual		09/08/22		09/08/24	EUR	86,380	$	34,119		$	10,345		$	23,774
1-Day SONIA, 0.94%	Annual	2.60%	Annual		09/08/22		09/08/24	GBP	207,940		(594,735	)		(557,592	)		(37,143	)
6-Month EURIBOR, 0.26%	Semi-Annual	2.01%	Annual		09/21/22		09/21/25	EUR	17,490		174,815			(166,536	)		341,351
1-Day SONIA, 0.94%	Annual	3.10%	Annual		09/21/22		09/21/25	GBP	3,420		54,806			13,638			41,168
3-Month BBSW, 1.81%	Quarterly	3.89%	Quarterly		09/21/22		09/21/25	AUD	6,050		30,373			(42,607	)		72,980
3.89%	Semi-Annual	3-Month Canada Bank Acceptance, 2.76%	Semi-Annual		09/21/22		09/21/25	CAD	27,310		(188,965	)		89,784			(278,749	)
0.18%	Annual	1-Day FEDL, 1.58%	Annual		N/A		10/20/25	USD	2,500		200,033			—			200,033

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 35

Schedule of Investments  (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio

Centrally Cleared Interest Rate Swaps (continued)

Paid by the Master Portfolio		Received by the Master Portfolio		Effective Date	Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
1-Day SOFR, 0.82%	Annual	0.18%	Annual	N/A		10/20/25	USD	2,500	$	(209,396	)	$	—		$	(209,396	)
1.83%	Annual	6-Month EURIBOR, 0.26%	Semi-Annual	09/08/22		09/08/27	EUR	184,750		392,093			71,140			320,953
2.39%	Annual	1-Day SONIA, 0.94%	Annual	09/08/22		09/08/27	GBP	161,450		1,010,957			1,106,464			(95,507	)
2.78%	Annual	1-Day SOFR, 0.82%	Annual	09/08/22		09/08/27	USD	76,820		112,871			292,510			(179,639	)
8.45%	Monthly	1-Month MXIBOR, 8.03%	Monthly	09/21/22		09/15/27	MXN	19,550		22,074			9			22,065
8.90%	Monthly	1-Month MXIBOR, 8.03%	Monthly	09/21/22		09/15/27	MXN	42,110		10,526			19			10,507
8.97%	Monthly	1-Month MXIBOR, 8.03%	Monthly	09/21/22		09/15/27	MXN	15,790		1,763			7			1,756
8.99%	Monthly	1-Month MXIBOR, 8.03%	Monthly	09/21/22		09/15/27	MXN	18,280		1,048			8			1,040
9.04%	Monthly	1-Month MXIBOR, 8.03%	Monthly	09/21/22		09/15/27	MXN	21,450		(571	)		10			(581	)
9.07%	Monthly	1-Month MXIBOR, 8.03%	Monthly	09/21/22		09/15/27	MXN	18,290		(1,571	)		8			(1,579	)
9.08%	Monthly	1-Month MXIBOR, 8.03%	Monthly	09/21/22		09/15/27	MXN	18,730		(1,979	)		9			(1,988	)
9.18%	Monthly	1-Month MXIBOR, 8.03%	Monthly	09/21/22		09/15/27	MXN	18,490		(5,607	)		9			(5,616	)
9.51%	Monthly	1-Month MXIBOR, 8.03%	Monthly	09/21/22		09/15/27	MXN	17,840		(17,041	)		8			(17,049	)
6-Month EURIBOR, 0.26%	Semi-Annual	0.65%	Annual	09/21/22		09/21/27	EUR	3,170		(195,641	)		1,474			(197,115	)
6-Month EURIBOR, 0.26%	Semi-Annual	0.88%	Annual	09/21/22		09/21/27	EUR	1,550		(77,983	)		19			(78,002	)
6-Month EURIBOR, 0.26%	Semi-Annual	0.91%	Annual	09/21/22		09/21/27	EUR	930		(45,554	)		11			(45,565	)
6-Month EURIBOR, 0.26%	Semi-Annual	0.98%	Annual	09/21/22		09/21/27	EUR	570		(25,804	)		(1,789	)		(24,015	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.02%	Annual	09/21/22		09/21/27	EUR	1,360		(59,185	)		2,326			(61,511	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.05%	Annual	09/21/22		09/21/27	EUR	1,670		(70,011	)		(4,034	)		(65,977	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.26%	Annual	09/21/22		09/21/27	EUR	1,040		(32,262	)		(2,890	)		(29,372	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.30%	Annual	09/21/22		09/21/27	EUR	640		(18,596	)		8			(18,604	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.51%	Annual	09/21/22		09/21/27	EUR	390		(7,370	)		1,017			(8,387	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.51%	Annual	09/21/22		09/21/27	EUR	1,050		(19,533	)		12			(19,545	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.52%	Annual	09/21/22		09/21/27	EUR	780		(14,354	)		9			(14,363	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.54%	Annual	09/21/22		09/21/27	EUR	1,220		(21,136	)		14			(21,150	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.61%	Annual	09/21/22		09/21/27	EUR	860		(11,817	)		10			(11,827	)
6-Month EURIBOR, 0.26%	Semi-Annual	1.76%	Annual	09/21/22		09/21/27	EUR	1,110		(6,717	)		4,446			(11,163	)
1-Day SONIA, 0.94%	Annual	2.14%	Annual	09/21/22		09/21/27	GBP	230		(4,720	)		(76	)		(4,644	)
6-Month EURIBOR, 0.26%	Semi-Annual	2.34%	Annual	09/21/22		09/21/27	EUR	690		15,632			8			15,624
2.37%	Semi-Annual	1-Day SORA, 0.72%	Semi-Annual	09/21/22		09/21/27	SGD	771		9,656			6			9,650
6-Month EURIBOR, 0.26%	Semi-Annual	2.37%	Annual	09/21/22		09/21/27	EUR	630		15,441			7			15,434
2.38%	Semi-Annual	1-Day SORA, 0.72%	Semi-Annual	09/21/22		09/21/27	SGD	877		10,865			7			10,858
2.40%	Semi-Annual	1-Day SORA, 0.72%	Semi-Annual	09/21/22		09/21/27	SGD	1,177		13,907			10			13,897
2.41%	Semi-Annual	1-Day SORA, 0.72%	Semi-Annual	09/21/22		09/21/27	SGD	1,003		11,308			8			11,300
1-Day SONIA, 0.94%	Annual	2.45%	Annual	09/21/22		09/21/27	GBP	1,070		(3,215	)		15			(3,230	)
3-Month HIBOR, 1.75%	Quarterly	2.48%	Quarterly	09/21/22		09/21/27	HKD	6,390		(28,246	)		9			(28,255	)
1-Day SONIA, 0.94%	Annual	2.53%	Annual	09/21/22		09/21/27	GBP	740		731			10			721
2.54%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27	USD	650		8,422			7			8,415
1-Day SONIA, 0.94%	Annual	2.58%	Annual	09/21/22		09/21/27	GBP	870		3,281			12			3,269
1-Day SONIA, 0.94%	Annual	2.61%	Annual	09/21/22		09/21/27	GBP	700		4,057			9			4,048
2.74%	Semi-Annual	1-Day SORA, 0.72%	Semi-Annual	09/21/22		09/21/27	SGD	800		148			6			142
1-Day SONIA, 0.94%	Annual	2.78%	Annual	09/21/22		09/21/27	GBP	870		13,408			12			13,396
2.80%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27	USD	620		480			7			473
2.81%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27	USD	1,040		372			12			360
2.83%	Semi-Annual	3-Month Canada Bank Acceptance, 0.00%	Semi-Annual	09/21/22		09/21/27	CAD	740		18,132			7			18,125
2.83%	Annual	3-Month STIBOR, 0.80%	Quarterly	09/21/22		09/21/27	SEK	9,000		(1,119	)		10			(1,129	)
3-Month HIBOR, 1.75%	Quarterly	2.85%	Quarterly	09/21/22		09/21/27	HKD	4,175		(9,477	)		6			(9,483	)
3-Month HIBOR, 1.75%	Quarterly	2.86%	Quarterly	09/21/22		09/21/27	HKD	4,175		(9,231	)		6			(9,237	)
1-Day SONIA, 0.94%	Annual	2.87%	Annual	09/21/22		09/21/27	GBP	900		18,501			12			18,489
2.89%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27	USD	1,280		(4,225	)		14			(4,239	)
2.89%	Semi-Annual	3-Month Canada Bank Acceptance, 0.00%	Semi-Annual	09/21/22		09/21/27	CAD	860		19,242			8			19,234
3-Month HIBOR, 1.75%	Quarterly	2.89%	Quarterly	09/21/22		09/21/27	HKD	6,790		(13,533	)		10			(13,543	)
2.91%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27	USD	1,410		(6,222	)		16			(6,238	)
2.96%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27	USD	1,010		(6,679	)		11			(6,690	)
3.00%	Annual	3-Month STIBOR, 0.80%	Quarterly	09/21/22		09/21/27	SEK	11,780		(10,633	)		13			(10,646	)
3-Month HIBOR, 1.75%	Quarterly	3.02%	Quarterly	09/21/22		09/21/27	HKD	5,015		(6,214	)		7			(6,221	)
3-Month HIBOR, 1.75%	Quarterly	3.04%	Quarterly	09/21/22		09/21/27	HKD	5,015		(5,623	)		7			(5,630	)
3-Month HIBOR, 1.75%	Quarterly	3.09%	Quarterly	09/21/22		09/21/27	HKD	4,200		(3,373	)		6			(3,379	)
3-Month HIBOR, 1.75%	Quarterly	3.10%	Quarterly	09/21/22		09/21/27	HKD	4,200		(3,225	)		6			(3,231	)

36 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio

Centrally Cleared Interest Rate Swaps (continued)

Paid by the Master Portfolio		Received by the Master Portfolio		Effective Date	Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
3.13%	Semi-Annual	1-Day SORA, 0.72%	Semi-Annual	09/21/22		09/21/27		SGD	615	$	(7,864	)	$	5		$	(7,869	)
3.14%	Semi-Annual	1-Day SORA, 0.72%	Semi-Annual	09/21/22		09/21/27		SGD	615		(8,029	)		5			(8,034	)
3.16%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27		USD	1,050		(16,865	)		12			(16,877	)
3.19%	Semi-Annual	3-Month Canada Bank Acceptance, 0.00%	Semi-Annual	09/21/22		09/21/27		CAD	640		7,544			6			7,538
3.21%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27		USD	1,310		(23,742	)		15			(23,757	)
3.22%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27		USD	1,670		(31,388	)		19			(31,407	)
3.27%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27		USD	730		(15,445	)		8			(15,453	)
3.27%	Semi-Annual	3-Month Canada Bank Acceptance, 0.00%	Semi-Annual	09/21/22		09/21/27		CAD	1,270		11,118			11			11,107
3.30%	Annual	1-Day SOFR, 0.82%	Annual	09/21/22		09/21/27		USD	870		(19,394	)		10			(19,404	)
3.37%	Semi-Annual	3-Month Canada Bank Acceptance, 0.00%	Semi-Annual	09/21/22		09/21/27		CAD	1,840		9,842			16			9,826
3.60%	Semi-Annual	3-Month Canada Bank Acceptance, 0.00%	Semi-Annual	09/21/22		09/21/27		CAD	1,660		(4,958	)		14			(4,972	)
3.93%	Semi-Annual	3-Month Canada Bank Acceptance, 0.00%	Semi-Annual	09/21/22		09/21/27		CAD	990		(14,545	)		9			(14,554	)
6-Month BBSW, 2.67%	Semi-Annual	4.14%	Semi-Annual	09/21/22		09/21/27		AUD	375		2,390			3			2,387
6-Month BBSW, 2.67%	Semi-Annual	4.22%	Semi-Annual	09/21/22		09/21/27		AUD	540		4,688			4			4,684
6-Month BBSW, 2.67%	Semi-Annual	4.23%	Semi-Annual	09/21/22		09/21/27		AUD	305		2,791			2			2,789
6.23%	Annual	6-Month WIBOR, 7.35%	Semi-Annual	09/21/22		09/21/27		PLN	3,150		17,283			8			17,275
6.30%	Annual	6-Month WIBOR, 7.35%	Semi-Annual	09/21/22		09/21/27		PLN	2,940		14,413			8			14,405
6.32%	Annual	6-Month WIBOR, 7.35%	Semi-Annual	09/21/22		09/21/27		PLN	3,350		15,671			8			15,663
6.72%	Annual	6-Month WIBOR, 7.35%	Semi-Annual	09/21/22		09/21/27		PLN	4,210		4,750			11			4,739
6.94%	Annual	6-Month WIBOR, 7.35%	Semi-Annual	09/21/22		09/21/27		PLN	3,320		(2,832	)		8			(2,840	)
7.01%	Annual	6-Month WIBOR, 7.35%	Semi-Annual	09/21/22		09/21/27		PLN	4,040		(6,151	)		10			(6,161	)
3-Month JIBAR, 5.01%	Quarterly	7.81%	Quarterly	09/21/22		09/21/27		ZAR	9,250		(13,816	)		5			(13,821	)
3-Month JIBAR, 5.01%	Quarterly	7.84%	Quarterly	09/21/22		09/21/27		ZAR	9,930		(14,093	)		7			(14,100	)
3-Month JIBAR, 5.01%	Quarterly	8.00%	Quarterly	09/21/22		09/21/27		ZAR	16,770		(17,144	)		12			(17,156	)
3-Month JIBAR, 5.01%	Quarterly	8.08%	Quarterly	09/21/22		09/21/27		ZAR	13,910		(11,460	)		10			(11,470	)
3-Month JIBAR, 5.01%	Quarterly	8.34%	Quarterly	09/21/22		09/21/27		ZAR	13,910		(2,574	)		10			(2,584	)
3-Month JIBAR, 5.01%	Quarterly	8.46%	Quarterly	09/21/22		09/21/27		ZAR	12,110		1,439			9			1,430
1-Day SOFR, 0.82%	Annual	0.54%	Annual	N/A		10/20/30		USD	1,250		(204,046	)		—			(204,046	)
0.55%	Annual	1-Day FEDL, 1.58%	Annual	N/A		10/20/30		USD	1,250		196,844			—			196,844
6-Month EURIBOR, 0.26%	Semi-Annual	2.06%	Annual	09/08/22		09/08/32		EUR	136,910		(2,054,381	)		(207,342	)		(1,847,039	)
1-Day SONIA, 0.94%	Annual	2.20%	Annual	09/08/22		09/08/32		GBP	38,789		(577,075	)		(469,918	)		(107,157	)
1-Day SOFR, 0.82%	Annual	2.80%	Annual	09/08/22		09/08/32		USD	40,890		(67,981	)		(286,826	)		218,845
0.74%	Annual	1-Day SOFR, 0.82%	Annual	N/A		10/20/35		USD	500		115,198			—			115,198
1-Day FEDL, 1.58%	Annual	0.78%	Annual	N/A		10/20/35		USD	500		(110,675	)		—			(110,675	)
0.84%	Annual	1-Day SOFR, 0.82%	Annual	N/A		10/20/40		USD	1,000		284,212			—			284,212
1-Day FEDL, 1.58%	Annual	0.90%	Annual	N/A		10/20/40		USD	1,000		(270,706	)		—			(270,706	)
0.90%	Annual	1-Day SOFR, 0.82%	Annual	N/A		10/20/50		USD	500		170,955			—			170,955
1-Day FEDL, 1.58%	Annual	0.98%	Annual	N/A		10/20/50		USD	500		(161,074	)		—			(161,074	)
1.86%	Annual	6-Month EURIBOR, 0.26%	Semi-Annual	09/08/22		09/08/52		EUR	22,120		702,911			130,617			572,294
2.07%	Annual	6-Month EURIBOR, 0.26%	Semi-Annual	09/08/22		09/08/52		EUR	150		(2,660	)		6,985			(9,645	)
										$	(1,629,351	)	$	(8,165	)	$	(1,621,186	)

OTC Interest Rate Swaps

Paid by the Master Portfolio		Received by the Master Portfolio		Counterparty	Effective Date		Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
3-Month KRW CDC, 2.04%	Quarterly	2.97%	Quarterly	Citibank N.A.		N/A		09/21/27	KRW	901,080	$	(18,565	)	$	—	$	(18,565	)
3-Month KRW CDC, 2.04%	Quarterly	2.99%	Quarterly	JPMorgan Chase Bank N.A.		N/A		09/21/27	KRW	901,080		(17,916	)		—		(17,916	)
3-Month KRW CDC, 2.04%	Quarterly	3.06%	Quarterly	JPMorgan Chase Bank N.A.		N/A		09/21/27	KRW	2,052,140		(35,072	)		—		(35,072	)

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 37

Schedule of Investments  (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio

OTC Interest Rate Swaps (continued)

Paid by the Master Portfolio		Received by the Master Portfolio		Counterparty	Effective Date		Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
3-Month KRW CDC, 2.04%	Quarterly	3.07%	Quarterly	JPMorgan Chase Bank N.A.		N/A		09/21/27	KRW	516,526	$	(8,688	)	$	—	$	(8,688	)
3-Month KRW CDC, 2.04%	Quarterly	3.10%	Quarterly	JPMorgan Chase Bank N.A.		N/A		09/21/27	KRW	556,258		(8,805	)		—		(8,805	)
3-Month KRW CDC, 2.04%	Quarterly	3.10%	Quarterly	Bank of America N.A.		N/A		09/21/27	KRW	1,743,620		(27,317	)		—		(27,317	)
3-Month KRW CDC, 2.04%	Quarterly	3.15%	Quarterly	Bank of America N.A.		N/A		09/21/27	KRW	1,111,350		(15,609	)		—		(15,609	)
3-Month KRW CDC, 2.04%	Quarterly	3.18%	Quarterly	Bank of America N.A.		N/A		09/21/27	KRW	995,970		(12,912	)		—		(12,912	)
3-Month KRW CDC, 2.04%	Quarterly	3.21%	Quarterly	JPMorgan Chase Bank N.A.		N/A		09/21/27	KRW	1,385,210		(16,511	)		—		(16,511	)
3-Month KRW CDC, 2.04%	Quarterly	3.24%	Quarterly	Bank of America N.A.		N/A		09/21/27	KRW	677,510		(7,245	)		—		(7,245	)
3-Month KRW CDC, 2.04%	Quarterly	3.46%	Quarterly	BNP Paribas SA		N/A		09/21/27	KRW	725,175		(2,137	)		—		(2,137	)
3-Month KRW CDC, 2.04%	Quarterly	3.47%	Quarterly	Bank of America N.A.		N/A		09/21/27	KRW	725,175		(1,667	)		—		(1,667	)
3-Month KRW CDC, 2.04%	Quarterly	3.57%	Quarterly	Citibank N.A.		N/A		09/21/27	KRW	929,508		1,012			—		1,012
3-Month KRW CDC, 2.04%	Quarterly	3.62%	Quarterly	Citibank N.A.		N/A		09/21/27	KRW	871,242		2,455			—		2,455
3-Month KRW CDC, 2.04%	Quarterly	3.62%	Quarterly	JPMorgan Chase Bank N.A.		N/A		09/21/27	KRW	580,828		1,679			—		1,679
3-Month KRW CDC, 2.04%	Quarterly	3.63%	Quarterly	Citibank N.A.		N/A		09/21/27	KRW	619,672		2,082			��		2,082
3-Month KRW CDC, 2.04%	Quarterly	3.77%	Quarterly	Bank of America N.A.		N/A		09/21/27	KRW	356,720		2,985			—		2,985
											$	(162,231	)	$	—	$	(162,231	)

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

Description	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps(a)	$	2,181,728	$	(2,493,871	)	$	4,775,180	$	(4,565,174	)
OTC Swaps		—		—			10,213		(172,444	)

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

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	2,765,632	$	—	$	2,765,632
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		205,929		—		—		205,929

38 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio

Derivative Financial Instruments Categorized by Risk Exposure (continued)

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)	$	—	$	1,732,944	$	—	$	—	$	2,849,253	$	192,983	$	4,775,180
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		—		—		—		10,213		—		10,213
	$	—	$	1,732,944	$	—	$	205,929	$	5,625,098	$	192,983	$	7,756,954
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	2,158,548	$	—	$	2,158,548
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts.		—		—		—		169,905		—		—		169,905
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		—		—		—		4,470,439		94,735		4,565,174
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		—		—		—		172,444		—		172,444
	$	—	$	—	$	—	$	169,905	$	6,801,431	$	94,735	$	7,066,071

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

For the period ended June 30, 2022, the effect of derivative financial instruments in the 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	$	—	$	—		$	—	$	—	$	(38,388,180	)	$	—		$	(38,388,180	)
Forward foreign currency exchange contracts		—		—			—		203,088		—			—			203,088
Swaps		—		(562,376	)		—		—		(499,877	)		(325,595	)		(1,387,848	)
	$	—	$	(562,376	)	$	—	$	203,088	$	(38,888,057	)	$	(325,595	)	$	(39,572,940	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts	$	—	$	—		$	—	$	—	$	3,288,351		$	—		$	3,288,351
Forward foreign currency exchange contracts		—		—			—		74,944		—			—			74,944
Swaps		—		2,645,161			—		—		(2,534,439	)		98,248			208,970
	$	—	$	2,645,161		$	—	$	74,944	$	753,912		$	98,248		$	3,572,265

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	379,905,451
Average notional value of contracts — short	$	143,764,548
Forward foreign currency exchange contracts:
Average amounts purchased — in USD	$	15,997,168
Average amounts sold — in USD	$	12,361,618
Credit default swaps:
Average notional value — buy protection	$	113,949,399
Interest rate swaps:
Average notional value — pays fixed rate	$	720,999,280
Average notional value — receives fixed rate	$	783,296,379
Inflation swaps:
Average notional value — pays fixed rate	$	10,209,039

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

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 39

Schedule of Investments  (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments
Futures contracts	$	2,518,982		$	726,332
Forward foreign currency exchange contracts		205,929			169,905
Swaps — centrally cleared		7,286,588			1,889,400
Swaps — OTC(a)		10,213			172,444
Total derivative assets and liabilities in the Statement of Assets and Liabilities		10,021,712			2,958,081
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(9,805,570	)		(2,615,732	)
Total derivative assets and liabilities subject to an MNA	$	216,142		$	342,349

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

The following table presents the Master Portfolio’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 Master Portfolio:

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 N.A.	$	189,960	$	(189,960	)	$	—	$	—	$	—
Citibank N.A.		5,549		(5,549	)		—		—		—
JPMorgan Chase Bank N.A.		7,872		(7,872	)		—		—		—
Morgan Stanley & Co. International PLC		2,028		(2,028	)		—		—		—
Natwest Markets PLC		3,868		—			—		—		3,868
Royal Bank of Canada		5,045		—			—		—		5,045
Standard Chartered Bank		1,820		(1,820	)		—		—		—
	$	216,142	$	(207,229	)	$	—	$	—	$	8,913
Counterparty		Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset	(a)		Non-Cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities	(b)(d)
Bank of America N.A.	$	198,962	$	(189,960	)	$	—	$	—	$	9,002
BNP Paribas S.A.		22,777		—			—		—		22,777
BNP Paribas SA		2,137		—			—		—		2,137
Citibank N.A.		18,565		(5,549	)		—		—		13,016
HSBC Bank USA N.A.		3,045		—			—		—		3,045
JPMorgan Chase Bank N.A.		86,992		(7,872	)		—		—		79,120
Morgan Stanley & Co. International PLC		4,374		(2,028	)		—		—		2,346
Standard Chartered Bank		5,497		(1,820	)		—		—		3,677
	$	342,349	$	(207,229	)	$	—	$	—	$	135,120

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

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

40 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Schedule of Investments  (unaudited) (continued) June 30, 2022 Advantage CoreAlpha Bond Master Portfolio

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 Master Portfolio’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Master Portfolio’s financial instruments categorized in the fair value hierarchy. The breakdown of the Master Portfolio’s financial instruments into major categories is disclosed in the Schedule of Investments above.

	Level 1			Level 2			Level 3		Total
Assets
Investments
Long-Term Investments
Asset-Backed Securities	$	—		$	135,366,749		$	—	$	135,366,749
Common Stocks		—			—			1		1
Corporate Bonds		—			441,203,619			—		441,203,619
Foreign Agency Obligations		—			5,190,417			—		5,190,417
Municipal Bonds		—			9,813,866			—		9,813,866
Non-Agency Mortgage-Backed Securities		—			155,817,853			10,823		155,828,676
U.S. Government Sponsored Agency Securities		—			413,031,835			—		413,031,835
Short-Term Securities
Money Market Funds		140,671,671			—			—		140,671,671
Liabilities
Investments
TBA Sale Commitments		—			(26,075,910	)		—		(26,075,910	)
	$	140,671,671		$	1,134,348,429		$	10,824	$	1,275,030,924
Derivative Financial Instruments(a)
Assets
Credit Contracts	$	—		$	1,732,944		$	—	$	1,732,944
Foreign Currency Exchange Contracts.		—			205,929			—		205,929
Interest Rate Contracts		2,765,632			2,859,466			—		5,625,098
Other Contracts		—			192,983			—		192,983
Liabilities
Foreign Currency Exchange Contracts		—			(169,905	)		—		(169,905	)
Interest Rate Contracts		(2,158,548	)		(4,642,883	)		—		(6,801,431	)
Other Contracts		—			(94,735	)		—		(94,735	)
	$	607,084		$	83,799		$	—	$	690,883

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

See notes to financial statements.

MASTER  PORTFOLIO  SCHEDULE  OF  INVESTMENTS 41

Statement of Assets and Liabilities (unaudited)

June 30, 2022

	Advantage CoreAlpha Bond Master Portfolio
ASSETS
Investments, at value — unaffiliated(a)(b)	$	1,160,435,163
Investments, at value — affiliated(c)		140,671,671
Cash pledged:
Futures contracts		9,991,000
Centrally cleared swaps		10,018,000
Foreign currency, at value(d)		3,761,121
Receivables:
Investments sold		5,028,758
Securities lending income — affiliated		8,832
TBA sale commitments		26,235,828
Dividends — unaffiliated		74,327
Dividends — affiliated		86
Interest — unaffiliated		5,489,338
Principal paydowns		8,625
Variation margin on futures contracts		2,518,982
Variation margin on centrally cleared swaps		7,286,588
Unrealized appreciation on:
Forward foreign currency exchange contracts		205,929
OTC swaps		10,213
Total assets		1,371,744,461
LIABILITIES
Bank overdraft		4,555,953
Collateral on securities loaned		43,641,627
TBA sale commitments, at value(e)		26,075,910
Payables:
Investments purchased		106,354,078
Withdrawals to investors		3,422,466
Investment advisory fees		474,375
Trustees’ fees		5,910
Professional fees		27,945
Variation margin on futures contracts		726,332
Variation margin on centrally cleared swaps		1,889,400
Unrealized depreciation on:
Forward foreign currency exchange contracts		169,905
OTC swaps		172,444
Total liabilities		187,516,345
NET ASSETS	$	1,184,228,116
NET ASSETS CONSIST OF
Investors’ capital	$	1,274,679,634
Net unrealized appreciation (depreciation)		(90,451,518	)
NET ASSETS	$	1,184,228,116
(a) Investments, at cost — unaffiliated	$	1,251,671,445
(b) Securities loaned, at value	$	42,027,908
(c)  Investments, at cost — affiliated	$	140,671,286
(d) Foreign currency, at cost	$	3,813,221
(e) Proceeds from TBA sale commitments	$	26,235,828

See notes to financial statements.

42 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Statement of Operations (unaudited)

Six Months Ended June 30, 2022

	Advantage CoreAlpha Bond Master Portfolio
INVESTMENT INCOME
Dividends — affiliated	$	113,952
Interest — unaffiliated		16,860,845
Securities lending income — affiliated — net		62,807
Total investment income		17,037,604
EXPENSES
Investment advisory		1,592,659
Trustees		8,985
Miscellaneous		24,575
Total expenses		1,626,219
Less:
Fees waived and/or reimbursed by the Manager		(44,924	)
Total expenses after fees waived and/or reimbursed		1,581,295
Net investment income		15,456,309
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(39,213,376	)
Investments — affiliated		(37,334	)
Forward foreign currency exchange contracts		203,088
Foreign currency transactions		(582,775	)
Futures contracts		(38,388,180	)
Swaps		(1,387,848	)
		(79,406,425	)
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		(111,592,418	)
Investments — affiliated		(11,569	)
Forward foreign currency exchange contracts		74,944
Foreign currency translations		(12,600	)
Futures contracts		3,288,351
Swaps		208,970
		(108,044,322	)
Net realized and unrealized loss		(187,450,747	)
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(171,994,438	)

See notes to financial statements.

MASTER  PORTFOLIO  FINANCIAL  STATEMENTS 43

Statements of Changes in Net Assets

	Advantage CoreAlpha Bond Master Portfolio
	Six Months Ended 06/30/22 (unaudited)			Year Ended 12/31/21
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	15,456,309		$	33,225,831
Net realized loss		(79,406,425	)		(6,058,908	)
Net change in unrealized appreciation (depreciation)		(108,044,322	)		(61,790,637	)
Net decrease in net assets resulting from operations		(171,994,438	)		(34,623,714	)
CAPITAL TRANSACTIONS
Proceeds from contributions		94,106,419			313,820,856
Value of withdrawals		(226,836,250	)		(595,612,774	)
Net decrease in net assets derived from capital transactions		(132,729,831	)		(281,791,918	)
NET ASSETS
Total decrease in net assets		(304,724,269	)		(316,415,632	)
Beginning of period		1,488,952,385			1,805,368,017
End of period	$	1,184,228,116		$	1,488,952,385

See notes to financial statements.

44 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Financial Highlights  (unaudited)

	Advantage CoreAlpha Bond Master Portfolio
	Six Months Ended 06/30/22 (unaudited)				Year Ended December 31,
					2021			2020			2019			2018			2017
Total Return
Total return			(11.71	)%(a)		(1.88	)%		8.93	%		9.74	%		(0.11	)%		4.28	%
Ratios to Average Net Assets(b)
Total expenses			0.24	%(c)		0.24	%		0.24	%		0.24	%		0.27	%(d)		0.26	%
Total expenses after fees waived and/or reimbursed			0.24	%(c)		0.23	%		0.23	%		0.23	%		0.24	%		0.24	%
Net investment income			2.30	%(c)		2.05	%		2.48	%		3.05	%		3.11	%		2.54	%
Supplemental Data
Net assets, end of period (000)		$	1,184,228		$	1,488,952		$	1,805,368		$	1,938,121		$	1,485,689		$	780,259
Portfolio turnover rate(e)			100	%		219	%		410	%		263	%		331	%		515	%

^(a)  Aggregate total return.

^(b)  Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(c)  Annualized.

^(d)  Includes board realignment and consolidation costs. Without these costs, total expenses a would have been 0.25%.

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

	Six Months Ended 06/30/22 (unaudited)			Year Ended December 31,
				2021			2020			2019			2018			2017
Portfolio turnover rate (excluding MDRs)		54	%		123	%		261	%		166	%		189	%		322	%

See notes to financial statements.

MASTER  PORTFOLIO  FINANCIAL  HIGHLIGHTS 45

Notes to Financial Statements (unaudited)

1. ORGANIZATION

Master Investment Portfolio II (“MIP II”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. MIP II is organized as a Delaware statutory trust. Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”) is a series of MIP II. The Master Portfolio is classified as diversified.

The Master Portfolio, together with certain other registered investment companies advised by BlackRock Advisors, LLC (“BAL” or the “Manager”) or its affiliates, is included in a complex of open-end non-index fixed-income funds and all BlackRock-advised closed-end funds referred to as the BlackRock Fixed-Income Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed (the “trade dates”). Realized gains and losses on investment transactions are determined 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, is recognized daily on an accrual basis.

Foreign Currency Translation: The Master Portfolio’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 Master Portfolio does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Realized currency gains (losses) on foreign currency related transactions are reported 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. The Master Portfolio has elected to treat realized gains (losses) from certain forward foreign currency exchange contracts as capital gain (loss) for U.S. federal income tax purposes.

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

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by the Board of Trustees of MIP II (the “Board”), the trustees who are not “interested persons” of the Master Portfolio, 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 Master Portfolio, as applicable. Deferred compensation liabilities, if any, are included in the Trustees’ and Officer’s fees payable in the Statement of Assets and Liabilities and will remain as a liability of the Master Portfolio until such amounts are distributed in accordance with the Plan.

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

Other: Expenses directly related to the Master Portfolio are charged to the Master Portfolio. 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.

46 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Master Portfolio’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Master Portfolio 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 Master Portfolio determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with a policy approved by the Board as reflecting fair value. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

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

• 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.

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 Master Portfolio 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 Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Master Portfolio might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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

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

MASTER  PORTFOLIO  NOTES  TO  FINANCIAL  STATEMENTS 47

Notes to Financial Statements (unaudited) (continued)

Standard Inputs Generally Considered By Third-Party Pricing Services

(ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company;

(iii)   relevant news and other public sources; and

(iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

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

The Private Companies are not subject to the public company disclosure, timing, and reporting standards applicable to other investments held by the Master Portfolio. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date the Master Portfolio is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Master Portfolio could receive upon the sale of the investment.

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 Master Portfolio 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 Global 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 Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies 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.

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

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Notes to Financial Statements (unaudited) (continued)

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

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

Forward Commitments, When-Issued and Delayed Delivery Securities: The Master Portfolio may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Master Portfolio may purchase securities under such conditions with the intention of actually acquiring them but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Master Portfolio may be required to pay more at settlement than the security is worth. In addition, the fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Master Portfolio assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Master Portfolio’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

TBA Commitments: TBA commitments are forward agreements for the purchase or sale of 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 Statement of Assets and Liabilities as cash pledged as collateral for TBA commitments or cash received as collateral for TBA commitments, respectively. Non-cash collateral pledged by a fund, if any, is noted in the Schedule of Investments. Typically, a fund is permitted to sell, re-pledge or use the collateral it receives; however, the counterparty is not permitted to do so. To the extent amounts due to a fund are not fully collateralized, contractually or otherwise, a fund bears the risk of loss from counterparty non-performance.

Mortgage Dollar Roll Transactions: The Master Portfolio 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.

Securities Lending: The Master Portfolio may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Master Portfolio collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Master Portfolio is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Master Portfolio and any additional required collateral is delivered to the Master Portfolio, or excess collateral returned by the Master Portfolio, on the next business day. During the term of the loan, the Master Portfolio is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Institutional Trust Company, N.A. (“BTC”), if any, is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Master Portfolio, except in the event of borrower default. The securities on loan, if any, are disclosed in the Master Portfolio’s Schedule of Investments. The market value of any securities on loan and the value of any related collateral are shown separately in the Statement of Assets and Liabilities as a component of investments at value –unaffiliated and collateral on securities loaned, respectively.

Securities lending transactions are entered into by the Master Portfolio under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Master Portfolio, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Master Portfolio can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

MASTER  PORTFOLIO  NOTES  TO  FINANCIAL  STATEMENTS 49

Notes to Financial Statements (unaudited) (continued)

As of period end, the following table is a summary of the Master Portfolio’s securities on loan by counterparty which are subject to offset under an MSLA:    

Counterparty		Securities Loaned at Value		Cash Collateral Received	(a)		Non-Cash Collateral Received, at Fair Value	(a)		Net Amount
Barclays Bank PLC	$	902,470	$	(902,470	)	$	—		$	—
Barclays Capital, Inc.		1,134,250		(1,134,250	)		—			—
BMO Capital Markets Corp.		98,534		(98,534	)		—			—
BNP Paribas SA		10,605,888		(10,605,888	)		—			—
BofA Securities, Inc.		3,755,288		(3,755,288	)		—			—
Citigroup Global Markets, Inc.		1,993,213		(1,993,213	)		—			—
Credit Suisse Securities (USA) LLC		286,038		(286,038	)		—			—
Deutsche Bank Securities, Inc.		415,396		(415,396	)		—			—
Goldman Sachs & Co. LLC		4,562,946		(4,562,946	)		—			—
HSBC Securities (USA), Inc.		1,442,804		(1,442,804	)		—			—
J.P. Morgan Securities LLC		3,677,724		(3,677,724	)		—			—
Morgan Stanley		7,268,518		(7,268,518	)		—			—
RBC Capital Markets LLC		3,196,827		(3,196,827	)		—			—
Scotia Capital (USA), Inc.		546,585		(546,585	)		—			—
State Street Bank & Trust Co.		286,254		(286,254	)		—			—
Wells Fargo Securities LLC		1,855,173		(1,855,173	)		—			—
	$	42,027,908	$	(42,027,908	)	$	—		$	—

^(a)  Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Master Portfolio is disclosed in the Master Portfolio’s Statement of Assets and Liabilities.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Master Portfolio benefits from a borrower default indemnity provided by BlackRock, Inc. (“BlackRock”). BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Master Portfolio could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Master Portfolio.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Master Portfolio engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Master Portfolio and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or over-the-counter (“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 Master Portfolio 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 Master Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Master Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest 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 Master Portfolio 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 Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount reflected in the Statement of Assets and Liabilities. Cash amounts pledged for forward

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Notes to Financial Statements (unaudited) (continued)

foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statement of Assets and Liabilities. A Master Portfolio’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 Master Portfolio.

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

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Master Portfolio’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 Master Portfolio’s counterparty on the swap. The Master Portfolio is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Master Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Master Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty are amortized over the term of the contract and recorded as realized gains (losses) in the Statement of Operations, including those at termination.

• 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 Master Portfolio 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 Master Portfolio 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 Master Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

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

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

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

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

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

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Master Portfolio 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 Master Portfolio 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 Master Portfolio 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.

MASTER  PORTFOLIO  NOTES  TO  FINANCIAL  STATEMENTS 51

Notes to Financial Statements (unaudited) (continued)

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 Master Portfolio and the counterparty.

Cash collateral that has been pledged to cover obligations of the Master Portfolio and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Master Portfolio, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Master Portfolio. Any additional required collateral is delivered to/pledged by the Master Portfolio 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 Master Portfolio 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 Master Portfolio from the counterparties are not fully collateralized, the Master Portfolio bears the risk of loss from counterparty non-performance. Likewise, to the extent the Master Portfolio has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, the Master Portfolio 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 Master Portfolio does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: MIP II, on behalf of the Master Portfolio, entered into an Investment Advisory Agreement with the Manager, the Master Portfolio’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory services. The Manager is responsible for the management of the Master Portfolio’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Master Portfolio.

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

Average Daily Net Assets	Investment Advisory Fees
First $1 billion		0.24	%
$1 billion — $3 billion		0.23
$3 billion — $5 billion		0.22
$5 billion — $10 billion		0.21
Greater than $10 billion		0.20

With respect to the Master Portfolio, the Manager entered into a sub-advisory agreement with each of BlackRock International Limited (“BIL”) and BlackRock Fund Advisors (“BFA”) (collectively, the “Sub-Advisers”), each an affiliate of the Manager. The Manager pays BIL and BFA for services they provide for that portion of the Master Portfolio for which BIL and BFA, as applicable, acts as sub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Master Portfolio to the Manager.

Expense Waivers and Reimbursements: The fees and expenses of the MIP II’s Independent Trustees, counsel to the Independent Trustees and the Master Portfolio’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Master Portfolio. The Manager has contractually agreed to reimburse the Master Portfolio or provide an offsetting credit against the investment advisory fees paid by the Master Portfolio in an amount equal to the independent expenses through June 30, 2023. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2022, the amount waived was $33,560.

With respect to the Master Portfolio, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees the Master Portfolio pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2023. 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 Master Portfolio. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the six months ended June 30, 2022, the amount waived was $11,364.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Master Portfolio’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, 2023. 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 Master Portfolio. For the six months ended June 30, 2022, there were no fees waived by the Manager pursuant to this arrangement.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BTC, an affiliate of the Manager, to serve as securities lending agent for the Master Portfolio, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. The Master Portfolio is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by the Manager or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Master Portfolio bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value redeemed or temporarily restrict redemptions for up to 10 business days during a 90 day period, in the event that the money market fund’s weekly liquid assets fall below certain thresholds.

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Notes to Financial Statements (unaudited) (continued)

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment fees. The Master Portfolio retains a portion of securities lending income and remits a remaining portion to BTC as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Master Portfolio retains 82% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Fixed-Income Complex in a calendar year exceeds a specified threshold, the Master Portfolio, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by the Master Portfolio is shown as securities lending income — affiliated — net in the Statement of Operations. For the six months ended June 30, 2022, the Master Portfolio paid BTC $22,754 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Master Portfolio 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 Master Portfolio’s investment policies and restrictions. The Master Portfolio 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, 2022, the Master Portfolio did not participate in the Interfund Lending Program.

Trustees and Officers: Certain trustees and/or officers of the MIP II are directors and/or officers of BlackRock or its affiliates.

7. PURCHASES AND SALES

For the six months ended June 30, 2022, purchases and sales of investments, including paydowns/payups and mortgage dollar rolls, excluding short-term investments, were as follows:

Master Portfolio Name	Purchases		Sales
Advantage CoreAlpha Bond Master Portfolio	$	1,399,331,389	$	1,694,564,540

For the six months ended June 30, 2022, purchases and sales related to mortgage dollar rolls were $648,881,232 and $650,062,052, respectively.

8. INCOME TAX INFORMATION

The Master Portfolio is classified as a partnership for U.S. federal income tax purposes. As such, each investor in the Master Portfolio is treated as the owner of its proportionate share of net assets, income, expenses and realized and unrealized gains and losses of the Master Portfolio. Therefore, no U.S. federal income tax provision is required. It is intended that the Master Portfolio’s assets will be managed so an investor in the Master Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.

The Master Portfolio 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 Master Portfolio’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 Master Portfolio’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 Master Portfolio as of June 30, 2022, 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 Master Portfolio’s financial statements.

As of June 30, 2022, 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:

Master Portfolio Name	Tax Cost		Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Advantage CoreAlpha Bond Master Portfolio	$	1,392,455,325	$	9,238,875	$	(99,736,567	)	$	(90,497,692	)

MASTER  PORTFOLIO  NOTES  TO  FINANCIAL  STATEMENTS 53

Notes to Financial Statements (unaudited) (continued)

9. BANK BORROWINGS

MIP II, on behalf of the Master Portfolio, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.50 billion credit agreement with a group of lenders. Under this agreement, the Master Portfolio may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Master Portfolio, 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 2023 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, 2022, the Master Portfolio did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Master Portfolio invests in securities or other instruments and may enter into certain transactions, and such activities subject the Master Portfolio 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 Master Portfolio and its investments. The Master Portfolio’s prospectus provides details of the risks to which the Master Portfolio is subject.

The Master Portfolio may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: The Master Portfolio 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 Master Portfolio to reinvest in lower yielding securities. The Master Portfolio may also be exposed to reinvestment risk, which is the risk that income from the Master Portfolio’s portfolio will decline if the Master Portfolio invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below the Master Portfolio portfolio’s current earnings rate.

Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for issuers of other securities.

An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. Although vaccines have been developed and approved for use by various governments, the duration of this pandemic and its effects cannot be determined with certainty.

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 Master Portfolio may invest in illiquid investments. An illiquid investment is any investment that the Master Portfolio 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 Master Portfolio 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 Master Portfolio’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 Master Portfolio may lose value, regardless of the individual results of the securities and other instruments in which the Master Portfolio invests.

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

Counterparty Credit Risk: The Master Portfolio 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 Master Portfolio 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 Master Portfolio to market, issuer and counterparty credit risks, consist

54 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Notes to Financial Statements (unaudited) (continued)

principally of financial instruments and receivables due from counterparties. The extent of the Master Portfolio’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Master Portfolio.

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.

With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Master Portfolio 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 Master Portfolio 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 Master Portfolio.

Concentration 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 Master Portfolio’s portfolio are disclosed in its Schedule of Investments.

The Master Portfolio invests a significant portion of its assets in fixed-income securities and/or uses derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Master Portfolio may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

The Master Portfolio invests a significant portion of its assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. When the Master Portfolio concentrates its investments in this manner, it assumes a greater risk of prepayment or payment extension by securities issuers. Changes in economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions. Investment percentages in these securities are presented in the Schedule of Investments.

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 the Master Portfolio 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 United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates ceased to be published or no longer are representative of the underlying market they seek to measure after December 31, 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Master Portfolio may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Master Portfolio is uncertain.

11. SUBSEQUENT EVENTS

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

MASTER  PORTFOLIO  NOTES  TO  FINANCIAL  STATEMENTS 55

Disclosure of Investment Advisory Agreement and Sub-Advisory  Agreements

The Board of Trustees of the Master Investment Portfolio II (the “Master Portfolio”) met on April 14, 2022 (the “April Meeting”) and May 19-20, 2022 (the “May Meeting”) to consider the approval to continue the investment advisory agreement (the “Advisory Agreement”) between the Master Portfolio, on behalf of Advantage CoreAlpha Bond Master Portfolio (the “Master Fund”) and BlackRock Advisors, LLC (the “Manager”), the Master Portfolio’s investment advisor. The Board of Trustees of the Master Portfolio also considered the approval to continue the sub-advisory agreements (together, the “Sub-Advisory Agreements”) between the Manager and BlackRock International Limited and BlackRock Fund Advisors (together, the “Sub-Advisors”), with respect to the Master Fund. The BlackRock Advantage CoreAlpha Bond Fund (the “Feeder Fund”), a series of BlackRock Funds VI (the “Feeder Trust”), is a “feeder” fund that invests all of its investable assets in the Master Fund. Accordingly, the Board of Trustees of the Feeder Trust also considered the approval of the Advisory Agreement and the Sub-Advisory Agreements with respect to the Master Fund. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreement and the Sub-Advisory Agreements are referred to herein as the “Agreements.” For simplicity: (a) the Board of Trustees of the Master Portfolio and the Board of Trustees of the Feeder Trust are referred to herein collectively as the “Board,” and the members are referred to as “Board Members”; and (b) the shareholders of the Feeder Fund and the interest holders of the Master Fund are referred to as “shareholders.”

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 Master Fund on an annual basis. The Board members who are not “interested persons” of the Master Fund, 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 Master 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 typically extending for two days, 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 surrounding the renewals of the Agreements. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to the Master Fund and the Feeder Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of the Master Fund’s and Feeder 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, considers information that was relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Master Fund, the Feeder Fund and their 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 Master Fund and/or the Feeder Fund for services; (c) the Master Fund’s and/or the Feeder Fund’s operating expenses and how BlackRock allocates expenses to the Master Fund and the Feeder Fund; (d) the resources devoted to risk oversight of, and compliance reports relating to, implementation of the Master Fund’s and the Feeder Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and the Master Fund’s and the Feeder 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 Master Fund’s and/or the Feeder 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 Master Fund and/or the Feeder 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 April Meeting, the Board received and reviewed materials specifically relating to the renewal of the Agreements. The Independent Board Members 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 April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding fees and expenses of the Master Fund and the Feeder Fund, as applicable, as compared with a peer group of funds as determined by Broadridge (“Expense Peers”), and the investment performance of the Feeder 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 Master Fund and the Feeder Fund; (g) a summary of aggregate amounts paid by the Master Fund and/or the Feeder Fund to BlackRock; (h) sales and redemption data regarding the Feeder Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s, the Master Fund’s and the Feeder Fund’s operations.

At the April 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 May Meeting.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Master Fund and the Feeder 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 Master Fund and the Feeder Fund; (d) the Feeder Fund’s fees and

56 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

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

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 Master Fund and the Feeder 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 portfolio holdings of the Master Fund. 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 it 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.

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 Feeder Fund. Throughout the year, the Board compared the Feeder Fund’s 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 Master Fund’s portfolio management team discussing the Master Fund’s performance and the Master Fund’s investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and the Master 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 Master 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 Master Fund and the Feeder Fund. BlackRock and its affiliates provide the Master Fund and the Feeder Fund with certain administrative, shareholder and other services (in addition to any such services provided to the Master Fund and the Feeder Fund by third-parties) and officers and other personnel as are necessary for the operations of the Master Fund and the Feeder Fund. In particular, BlackRock and its affiliates provide the Master Fund and the Feeder 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 custodian, fund accountant, transfer agent, and auditor for the Master Fund and Feeder Fund, as applicable; (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 Master Fund and the Feeder Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the Feeder 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, including in light of the ongoing COVID-19 pandemic.

B. The Investment Performance of the Master Fund, the Feeder Fund and BlackRock

The Board, including the Independent Board Members, also reviewed and considered the performance history of the Master Fund and the Feeder Fund, as applicable, throughout the year and at the April meeting. The Board noted that the Feeder Fund’s investment results correspond directly to the investment results of the Master Fund. In preparation for the April Meeting, the Board was provided with reports independently prepared by Broadridge, which included an analysis of the Feeder Fund’s performance as of December 31, 2021, 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 Feeder Fund as compared to its Performance Peers. The Board and its Performance Oversight Committee regularly review, and meet with Master Fund management to discuss, the performance of the Master Fund and the Feeder Fund, as applicable, 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 the one-, three- and five-year periods reported, the Feeder Fund ranked in the fourth, first and first quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Feeder Fund’s underperformance relative to its Performance Peers during the applicable period.

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 Master Fund and the Feeder Fund

The Board, including the Independent Board Members, reviewed the Master Fund’s/Feeder Fund’s contractual management fee rate compared with those of the Feeder Fund’s 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 Feeder Fund’s total expense ratio, as well as the Master Fund’s/Feeder Fund’s actual management fee rate, to those of the Feeder Fund’s 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

DISCLOSURE  OF  INVESTMENT  ADVISORY  AGREEMENT   AND  SUB - ADVISORY  AGREEMENTS 57

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

waivers. 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 Master Fund and the Feeder Fund. The Board reviewed BlackRock’s estimated profitability with respect to the Master Fund and the Feeder Fund, as applicable, and other funds the Board currently oversees for the year ended December 31, 2021 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, assumption of risk, and liability profile in servicing the Master Fund and the Feeder 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 Master Fund’s/Feeder Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and the Feeder Fund’s total expense ratio ranked in the second and first quartiles, respectively, relative to the Feeder Fund’s Expense Peers. The Board also noted that the Master Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Master Fund increases above certain contractually specified levels. The Board noted that if the size of the Master Fund were to decrease, the Master Fund could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and its affiliates have contractually agreed to reimburse or otherwise compensate the Master Fund/Feeder Fund for certain other fees and expenses.

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 Master Fund and the Feeder 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 Master Fund and the Feeder Fund benefit 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 Master Fund and the Feeder Fund to more fully participate in these economies of scale. The Board considered the Master 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 Master Fund and the Feeder 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 Master Fund and the Feeder Fund, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the open-end fund marketplace, and that shareholders are able to redeem their Feeder Fund shares if they believe that the Feeder Fund’s and/or the Master Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Feeder Fund.

Conclusion

At the May Meeting, as a result of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board of the Master Portfolio, including the Independent Board Members, approved, by unanimous vote of those present, the continuation of the Advisory Agreement between the Manager and the Master Portfolio, on behalf of the Master Fund for a one-year term ending June 30, 2023, and the Sub-Advisory Agreements between the Manager and the Sub-Advisors, with respect to the Master Fund, for a one-year term ending June 30, 2023. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board of the Master Portfolio, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of the Master Fund and its shareholders. The Board of the Feeder Trust, including the Independent Board Members, also considered the continuation of the Agreements with respect to the Master Fund and found the Agreements to be satisfactory. In arriving at its decision to approve the Agreements, the Board of the Master

58 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

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

Portfolio 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 also assisted by the advice of independent legal counsel in making this determination.

DISCLOSURE  OF  INVESTMENT  ADVISORY  AGREEMENT  AND   SUB - ADVISORY   AGREEMENTS 59

Additional Information

Regulation Regarding Derivatives

On October 28, 2020, the Securities and Exchange Commission (the “SEC”) adopted regulations governing the use of derivatives by registered investment companies (“Rule 18f-4”). The Fund/Master Portfolio will be required to implement and comply with Rule 18f-4 by August 19, 2022. Once implemented, Rule 18f-4 will impose limits on the amount of derivatives a fund can enter into, eliminate the asset segregation framework currently used by funds to comply with Section 18 of the 1940 Act, treat derivatives as senior securities and require funds whose use of derivatives is more than a limited specified exposure amount to establish and maintain a comprehensive derivatives risk management program and appoint a derivatives risk manager.

General Information

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Fund/Master Portfolio 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/Master Portfolio 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/Master Portfolio file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Fund’s/Master Portfolio’s Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, the Fund/Master Portfolio makes their 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/Master Portfolio use to determine how to vote proxies relating to portfolio securities and information about how the Fund/Master Portfolio voted proxies relating to securities held in the Fund’s/Master Portfolio’s portfolios 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.

60 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Additional Information  (continued)

BlackRock Privacy Principles

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

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

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

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

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

Fund and/or MIP II Service Providers
Investment Adviser and Administrator	Distributor
BlackRock Advisors, LLC	BlackRock Investments, LLC
Wilmington, DE 19809	New York, NY 10022
Sub-Adviser	Independent Registered Public Accounting Firm
BlackRock Fund Advisors	PricewaterhouseCoopers LLP
San Francisco, CA 94105	Philadelphia, PA 19103
BlackRock International Limited	Legal Counsel
Edinburgh, EH3 8BL	Willkie Farr & Gallagher LLP
United Kingdom	New York, NY 10019
Accounting Agent and Custodian	Address of the Fund/MIP II
State Street Bank and Trust Company	100 Bellevue Parkway
Boston, MA 02111	Wilmington, DE 19809
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Wilmington, DE 19809

ADDITIONAL   INFORMATION 61

Glossary of Terms Used in this Report

Currency Abbreviation
AUD	Australian Dollar
CAD	Canadian Dollar
EUR	Euro
GBP	British Pound
HKD	Hong Kong Dollar
KRW	South Korean Won
MXN	Mexican Peso
PLN	Polish Zloty
SEK	Swedish Krona
SGD	Singapore Dollar
USD	United States Dollar
ZAR	South African Rand
Portfolio Abbreviation
ARB	Airport Revenue Bonds
BAB	Build America Bond
BBSW	Bank Bill Swap Rate
CME	Chicago Mercantile Exchange
CMT	Constant Maturity Treasury
EURIBOR	Euro Interbank Offered Rate
FEDL	Fed Funds Effective Rate
GO	General Obligation Bonds
HIBOR	Hong Kong Interbank Offered Rate
JIBAR	Johannesburg Interbank Average Rate
LIBOR	London Interbank Offered Rate
MXIBOR	Mexico Interbank Offered Rate
RB	Revenue Bond
REMIC	Real Estate Mortgage Investment Conduit
SAB	Special Assessment Bonds
SOFR	Secured Overnight Financing Rate
SONIA	Sterling Overnight Interbank Average Rate
SORA	Singapore Overnight Rate Average
STACR	Structured Agency Credit Risk
STIBOR	Stockholm Interbank Offered Rate
TBA	To-Be-Announced
WIBOR	Warsaw Interbank Offered Rate

62 2 0 2 2   BLACK ROCK  SEMI - ANNUAL  REPORT  TO   SHAREHOLDERS

Want to know more?

blackrock.com | 800-441-7762

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

CAB-06/22-SAR

(b) Not Applicable

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 registrants’ 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 registrants’ principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants’ 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 registrants’ 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 registrants’ 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

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

2

(a)(4) Change in Registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached

3

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

BlackRock Funds VI and Master Investment Portfolio II

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Funds VI and Master Investment Portfolio II

Date: August 19, 2022

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 each 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 VI and Master Investment Portfolio II

Date: August 19, 2022

By:	/s/ Trent Walker
	Trent Walker
	Chief Financial Officer (principal financial officer) of
	BlackRock Funds VI and Master Investment Portfolio II

Date: August 19, 2022

4