Blackrock Bond Fund 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: 811-02857

Name of Fund: BlackRock Bond Fund, Inc.

BlackRock Sustainable Total Return Fund

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service:  John M. Perlowski, Chief Executive Officer, BlackRock Bond Fund, Inc., 50 Hudson Yards, New York, NY 10001

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

Date of fiscal year end: 09/30/2023

Date of reporting period: 03/31/2023

Item 1 – Report to Stockholders

(a)  The Report to Shareholders is attached herewith.

             (b)  Not Applicable  

MARCH

31,

2023

Not

FDIC

Insured

-

May

Lose

Value

-

No

Bank

Guarantee

2023

Semi-Annual

Report

(Unaudited)

BlackRock

Funds

V

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

BlackRock

Bond

Fund,

Inc.

BlackRock

Sustainable

Total

Return

Fund

Dear

Shareholder,

Significant

economic

headwinds

emerged

during

the

12-month

reporting

period

ended

March

31,

2023,

as

investors

navigated

changing

economic

conditions

and

volatile

markets.

The

U.S.

economy

shrank

in

the

first

half

of

2022

before

returning

to

modest

growth

in

the

second

half

of

the

year,

marking

a

shift

to

a

more

challenging

post-reopening

economic

environment.

Changes

in

consumer

spending

patterns

and

a

tight

labor

market

led

to

elevated

inflation,

which

reached

a

40-year

high

before

beginning

to

moderate.

Equity

prices

fell

as

interest

rates

rose,

particularly

during

the

first

half

of

the

reporting

period.

Both

large-

and

small-capitalization

U.S.

stocks

declined,

although

equities

began

to

recover

in

the

second

half

of

the

period

as

inflation

eased

and

economic

growth

resumed.

Emerging

market

stocks

and

international

equities

from

developed

markets

declined

overall,

pressured

by

rising

interest

rates

and

volatile

commodities

prices.

The

10-year

U.S.

Treasury

yield

rose

during

the

reporting

period,

driving

its

price

down,

as

investors

reacted

to

fluctuating

inflation

data

and

attempted

to

anticipate

its

impact

on

future

interest

rate

changes.

The

corporate

bond

market

also

faced

inflationary

headwinds,

and

higher

interest

rates

led

to

rising

borrowing

costs

for

corporate

issuers.

The

U.S.

Federal

Reserve

(the

“Fed”),

acknowledging

that

inflation

has

been

more

persistent

than

expected,

raised

interest

rates

eight

times.

Furthermore,

the

Fed

wound

down

its

bond-buying

programs

and

accelerated

the

reduction

of

its

balance

sheet.

Restricted

labor

supply

kept

inflation

elevated

even

as

other

inflation

drivers,

such

as

goods

prices

and

energy

costs,

moderated.

While

economic

growth

slowed

in

the

last

year,

we

believe

that

taming

inflation

requires

a

more

substantial

decline

that

lowers

demand

to

a

level

more

in

line

with

the

economy’s

productive

capacity.

Although

the

Fed

has

decelerated

the

pace

of

interest

rate

hikes,

we

believe

that

it

still

seems

determined

to

get

inflation

back

to

target.

With

this

in

mind,

we

believe

the

possibility

of

a

U.S.

recession

in

the

near-term

is

high,

but

the

dimming

economic

outlook

has

not

yet

been

fully

reflected

in

current

market

prices.

We

believe

investors

should

expect

a

period

of

higher

volatility

as

markets

adjust

to

the

new

economic

reality

and

policymakers

attempt

to

adapt

to

rapidly

changing

conditions.

Turmoil

in

the

banking

sector

late

in

the

period

highlighted

the

potential

for

the

knock-on

effects

of

substantially

higher

interest

rates

to

disrupt

markets

with

little

warning.

While

we

favor

an

overweight

to

equities

in

the

long

term,

we

prefer

an

underweight

stance

on

equities

overall

in

the

near

term.

Expectations

for

corporate

earnings

remain

elevated,

which

seems

inconsistent

with

the

possibility

of

a

recession.

Nevertheless,

we

are

overweight

on

emerging

market

stocks

as

we

believe

a

weakening

U.S.

dollar

provides

a

supportive

backdrop.

We

also

see

long-term

opportunities

in

credit,

where

we

believe

that

valuations

are

appealing

and

higher

yields

provide

attractive

income,

although

we

are

neutral

on

credit

in

the

near

term,

as

we’re

concerned

about

tightening

credit

and

financial

conditions.

However,

we

believe

there

are

still

some

strong

opportunities

for

a

six-

to

twelve-month

horizon,

particularly

short-term

U.S.

Treasuries,

global

inflation-linked

bonds,

and

emerging

market

bonds

denominated

in

local

currency.

Overall,

our

view

is

that

investors

need

to

think

globally,

position

themselves

to

be

prepared

for

a

decarbonizing

economy,

and

be

nimble

as

market

conditions

change.

We

encourage

you

to

talk

with

your

financial

advisor

and

visit

blackrock.com

for

further

insight

about

investing

in

today’s

markets.

Sincerely,

Rob

Kapito

President,

BlackRock

Advisors,

LLC

The

Markets

in

Review

Rob

Kapito

President,

BlackRock

Advisors,

LLC

Past

performance

is

not

an

indication

of

future

results.

Index

performance

is

shown

for

illustrative

purposes

only.

You

cannot

invest

directly

in

an

index.

Total

Returns

as

of

March

31,

2023

6-Month

12-Month

U.S.

large

cap

equities

(S&P

500

®

Index)

15.62

%

(7.73

)%

U.S.

small

cap

equities

(Russell

2000

®

Index)

9.14

(11.61

)

International

equities

(MSCI

Europe,

Australasia,

Far

East

Index)

27.27

(1.38

)

Emerging

market

equities

(MSCI

Emerging

Markets

Index)

14.04

(10.70

)

3-month

Treasury

bills

(ICE

BofA

3-Month

U.S.

Treasury

Bill

Index)

1.93

2.52

U.S.

Treasury

securities

(ICE

BofA

10-Year

U.S.

Treasury

Index)

4.38

(6.90

)

U.S.

investment

grade

bonds

(Bloomberg

U.S.

Aggregate

Bond

Index)

4.89

(4.78

)

Tax-exempt

municipal

bonds

(Bloomberg

Municipal

Bond

Index)

7.00

0.26

U.S.

high

yield

bonds

(Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index)

7.88

(3.35

)

This

Page

is

not

Part

of

Your

Fund

Report

2

Table

of

Contents

Page

3

The

Markets

in

Review

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

2

Semi-Annual

Report:

Fund

Summary

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

4

About

Fund

Performance

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

10

Disclosure

of

Expenses

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

11

Derivative

Financial

Instruments

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

11

Financial

Statements:

Schedules

of

Investments

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

12

Statements

of

Assets

and

Liabilities

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

50

Statements

of

Operations

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

53

Statements

of

Changes

in

Net

Assets

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

54

Financial

Highlights

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

56

Notes

to

Financial

Statements

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

65

Statement

Regarding

Liquidity

Risk

Management

Program

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

79

Additional

Information

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

80

Glossary

of

Terms

Used

in

this

Report

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

82

Fund

Summary

as

of

March

31,

2023

2023

BlackRock

Semi-Annual

Report

to

Shareholders

4

BlackRock

Sustainable

High

Yield

Bond

Fund

Investment

Objective

BlackRock

Sustainable

High

Yield

Bond

Fund's

(the

“Fund”)

investment

objective

is

to

seek

to

maximize

total

return,

consistent

with

income

generation

and

prudent

investment

management,

while

seeking

to

maintain

certain

environmental,

governance

and

social

(“ESG”)

characteristics,

climate

risk

exposure

and

climate

opportunities

relative

to

the

Fund’s

benchmark.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

six

month

period

ended

March

31,

2023,

all

of

the

Fund's

share

classes

outperformed

its

benchmark,

the

Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index.

What

factors

influenced

performance?

Security

selection

in

high

yield

bonds

was

the

top

contributor,

followed

by

an

overweight

in

CCC-rated

issues.

From

a

sector

perspective,

underweights

in

media

and

entertainment

and

retail

helped

results.

An

underweight

allocation

to

the

leisure

sector

detracted

from

performance,

as

did

an

elevated

cash

position.

An

underweight

in

gaming

and

an

overweight

in

wireline

telecommunications

detracted

from

performance,

as

well.

Describe

recent

portfolio

activity.

The

Fund’s

allocation

to

investment-grade

bonds

increased

as

the

investment

adviser

believed

that

it

uncovered

attractive

relative

value

opportunities.

In

addition,

some

of

the

Fund’s

holdings

in

high

yield

bonds

were

upgraded

to

investment-grade

status.

This

trend

also

contributed

to

a

reduction

in

the

Fund’s

allocation

to

BB-rated

issues.

The

investment

adviser

reduced

the

Fund’s

allocation

to

CCC-rated

debt.

The

investment

adviser

sought

to

maintain

below-average

portfolio

risk

due

to

the

combination

of

rising

interest

rates

and

slowing

economic

growth.

As

a

result,

portfolio

beta

(sensitivity

to

market

movements)

declined

over

the

course

of

the

period.

Describe

portfolio

positioning

at

period

end.

The

Fund

was

underweight

in

BBs

and

overweight

in

Bs

and

CCCs,

and

it

maintained

the

out-of-benchmark

allocations

to

loans

and

investment-grade

corporates.

The

Fund

was

overweight

in

the

technology,

property

and

casualty

and

electric

utilities

sectors,

and

it

was

underweight

in

midstream

energy,

independent

energy

and

leisure

sectors.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

March

31,

2023

(continued)

5

Fund

Summary

BlackRock

Sustainable

High

Yield

Bond

Fund

Performance

N/A

-

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Average

Annual

Total

Returns

(a)(b)

1

Year

Since

Inception

(c)

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

6-Month

Total

Returns

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

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

7.63‌%

6.63‌%

8.15‌%

(3.10‌)%

N/A‌

(4.17‌)%

N/A‌

Investor

A

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

7.08‌

6.11‌

8.01‌

(3.34‌)

(7.21‌)%

(4.41‌)

(6.69‌)%

Class

K

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

7.68‌

6.68‌

8.17‌

(3.06‌)

N/A‌

(4.13‌)

N/A‌

Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index

(d)

—‌

—‌

7.88‌

(3.35‌)

N/A‌

(4.07‌)

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

primarily

in

non-investment

grade

bonds

with

maturities

of

ten

years

or

less.

The

Fund

normally

invests

at

least

80%

of

its

net

assets,

plus

the

amount

of

any

borrowings

for

investment

purposes,

in

high

yield

bonds.

(c)

The

Fund

commenced

operations

on

July

22,

2021.

(d)

An

unmanaged

index

comprised

of

issues

that

meet

the

following

criteria:

at

least

$150

million

par

value

outstanding;

maximum

credit

rating

of

Ba1;

at

least

one

year

to

maturity;

and

no

issuer

represents

more

than

2%

of

the

index.

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(10/01/22)

Ending

Account

Value

(03/31/23)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(10/01/22)

Ending

Account

Value

(03/31/23)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

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

$

1,000.00‌

$

1,081.50‌

$

2.96‌

$

1,000.00‌

$

1,022.09‌

$

2.87‌

0.57‌%

Investor

A

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

1,000.00‌

1,080.10‌

4.25‌

1,000.00‌

1,020.84‌

4.13‌

0.82‌

Class

K

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

1,000.00‌

1,081.70‌

2.75‌

1,000.00‌

1,022.29‌

2.67‌

0.53‌

(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

182/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

Corporate

Bonds

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

90.9‌

%

Floating

Rate

Loan

Interests

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

8.8‌

Common

Stocks

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

0.2‌

Preferred

Securities

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

0.1‌

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(b)

Percent

of

Total

Investments

(a)

A

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

0.2‌

%

BBB/Baa

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

7.1‌

BB/Ba

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

42.9‌

B

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

41.2‌

CCC/Caa

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

8.1‌

NR

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

0.5‌

(a)

Excludes

short-term

securities,

options

purchased

and

options

written.

(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

if

ratings

differ.

These

rating

agencies

are

independent,

nationally

recognized

statistical

rating

organizations

and

are

widely

used.

Investment

grade

ratings

are

credit

ratings

of

BBB/Baa

or

higher.

Below

investment

grade

ratings

are

credit

ratings

of

BB/Ba

or

lower.

Investments

designated

NR

are

not

rated

by

either

rating

agency.

Unrated

investments

do

not

necessarily

indicate

low

credit

quality.

Credit

quality

ratings

are

subject

to

change.

Fund

Summary

as

of

March

31,

2023

2023

BlackRock

Semi-Annual

Report

to

Shareholders

6

BlackRock

Sustainable

Low

Duration

Bond

Fund

Investment

Objective

BlackRock

Sustainable

Low

Duration

Bond

Fund's

(the

“Fund”)

investment

objective

is

to

seek

total

return

in

excess

of

the

reference

benchmark

in

a

manner

that

is

consistent

with

preservation

of

capital

while

seeking

to

maintain

certain

environmental,

social

and

governance

(“ESG”)

characteristics,

climate

risk

exposure

and

climate

opportunities

relative

to

the

Fund’s

benchmark.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

six

month

period

that

ended

on

March

31,

2023,

all

of

the

Fund’s

share

classes

outperformed

the

benchmark,

the

ICE

BofA

1-3

Year

U.S.

Corporate

&

Government

Index.

What

factors

influenced

performance?

Allocations

to

mortgage-backed

securities

(“MBS”),

investment-grade

corporate

bonds,

asset-backed

securities

(“ABS”),

U.S.

Treasuries,

European

corporate

issues,

cash,

high

yield

bonds,

non-U.S.

government

debt

and

commercial

mortgage-backed

securities

(“CMBS”)

all

contributed

to

performance.

Duration

positioning

was

the

primary

detractor

from

performance,

followed

by

holdings

in

emerging

markets

debt

and

municipal

bonds.

(Duration

is

a

measure

of

interest

rate

sensitivity).

The

Fund

held

derivatives

during

the

reporting

period.

Specifically,

it

used

futures

and

interest

rate

swaps

to

manage

its

duration

and

yield

curve

positioning.

It

also

used

currency

forward

contracts

to

manage

currency

risk.

In

the

aggregate,

the

Fund’s

use

of

derivatives

was

a

modest

detractor

from

performance.

The

Fund’s

cash

position

had

no

material

impact

on

performance.

Describe

recent

portfolio

activity.

The

investment

adviser

increased

the

Fund’s

allocation

to

U.S.

Treasuries

on

the

view

that

they

could

augment

portfolio

diversification

at

a

time

of

slowing

economic

growth

and

tight

yield

spreads

in

other

areas

of

the

market.

It

also

increased

the

Fund’s

holdings

in

callable

agency

MBS

as

the

investment

adviser

believed

they

had

attractive

valuations.

The

adviser

reduced

the

Fund’s

positions

in

CMBS,

non-U.S.

corporate

bonds,

and

non-U.S.

government

debt.

Since

the

Fund

is

managed

with

sustainability

goals

in

mind,

it

holds

impact

MBS.

Impact

MBS

are

custom

pools

created

by

Fannie

Mae

for

BlackRock

that

support

the

former’s

“Duty

to

Serve”

goals.

These

pools

include

specific

mortgage

borrowers,

such

as

low-income

and

very

low-income

family

homes,

as

well

as

homes

in

low-income

and

high-minority

areas.

In

general,

such

mortgages

provide

credit

to

a

targeted

group

of

borrowers,

for

whom

the

benefits

of

homeownership

could

have

a

significant

social

impact.

The

investment

adviser

slightly

reduced

the

Fund’s

holdings

in

this

area

in

late

2022,

as

yield

spreads

had

tightened

following

a

period

of

strong

performance.

Describe

portfolio

positioning

at

period

end.

The

Fund

was

underweight

in

U.S.

Treasuries,

non-U.S.

government

debt

and

the

emerging

markets.

It

was

overweight

in

mortgages,

ABS,

CMBS,

investment-grade

corporate

bonds

and

high

yield

bonds.

The

Fund’s

duration

was

shorter

than

that

of

the

benchmark.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

March

31,

2023

(continued)

7

Fund

Summary

BlackRock

Sustainable

Low

Duration

Bond

Fund

Performance

N/A

-

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Average

Annual

Total

Returns

(a)(b)

1

Year

Since

Inception

(c)

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

6-Month

Total

Returns

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

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

4.37‌%

3.80‌%

3.01‌%

(0.34‌)%

N/A‌

(2.37‌)%

N/A‌

Investor

A

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

4.02‌

3.47‌

2.88‌

(0.60‌)

(2.83‌)%

(2.62‌)

(4.13‌)%

Class

K

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

4.42‌

3.85‌

3.03‌

(0.31‌)

N/A‌

(2.33‌)

N/A‌

ICE

BofA

1-3

Year

U.S.

Corporate

&

Government

Index

(d)

.....

—‌

—‌

2.40‌

0.30‌

N/A‌

(1.82‌)

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

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

normally

invests

at

least

80%

of

its

assets

in

bonds.

The

Fund

may

invest

up

to

20%

of

its

assets

in

non-investment

grade

bonds

(commonly

called

“high

yield”

or

“junk

bonds”).

(c)

The

Fund

commenced

operations

on

October

18,

2021.

(d)

An

unmanaged

index

comprised

of

investment

grade

corporate

bonds

and

U.S.

Government

Agency

and

U.S.

Treasury

securities

with

a

maturity

ranging

from

one

to

three

years.

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(10/01/22)

Ending

Account

Value

(03/31/23)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(10/01/22)

Ending

Account

Value

(03/31/23)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

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

$

1,000.00‌

$

1,030.10‌

$

1.92‌

$

1,000.00‌

$

1,023.04‌

$

1.92‌

0.38‌%

Investor

A

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

1,000.00‌

1,028.80‌

3.24‌

1,000.00‌

1,021.74‌

3.23‌

0.64‌

Class

K

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

1,000.00‌

1,030.30‌

1.77‌

1,000.00‌

1,023.19‌

1.77‌

0.35‌

(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

182/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

Corporate

Bonds

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

36.6‌

%

U.S.

Treasury

Obligations

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

29.7‌

Asset-Backed

Securities

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

16.4‌

U.S.

Government

Sponsored

Agency

Securities

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

9.7‌

Non-Agency

Mortgage-Backed

Securities

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

6.0‌

Foreign

Agency

Obligations

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

1.6‌

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(b)

Percent

of

Total

Investments

(a)

AAA/

Aaa

(c)

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

60.7‌

%

AA/Aa

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

0.6‌

A

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

16.1‌

BBB/Baa

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

14.5‌

BB/Ba

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

3.8‌

B

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

2.2‌

CCC/

Caa

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

0.0‌

(d)

NR

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

2.1‌

(a)

Excludes

short-term

securities

and

TBA

sale

commitments.

(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

if

ratings

differ.

These

rating

agencies

are

independent,

nationally

recognized

statistical

rating

organizations

and

are

widely

used.

Investment

grade

ratings

are

credit

ratings

of

BBB/Baa

or

higher.

Below

investment

grade

ratings

are

credit

ratings

of

BB/Ba

or

lower.

Investments

designated

NR

are

not

rated

by

either

rating

agency.

Unrated

investments

do

not

necessarily

indicate

low

credit

quality.

Credit

quality

ratings

are

subject

to

change.

(c)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

(d)

Represents

less

than

0.1%

of

the

Fund's

total

investments.

Fund

Summary

as

of

March

31,

2023

2023

BlackRock

Semi-Annual

Report

to

Shareholders

8

BlackRock

Sustainable

Total

Return

Fund

Investment

Objective

BlackRock

Sustainable

Total

Return

Fund’s

(the

“Fund”)

investment

objective

is

to

realize

a

total

return

that

exceeds

that

of

the

Bloomberg

U.S.

Aggregate

Bond

Index

(the

“Benchmark”)

while

seeking

to

maintain

certain

environmental,

social

and

governance

(“ESG”)

characteristics,

climate

risk

exposure

and

climate

opportunities

relative

to

the

Benchmark.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

six

month

period

ended

March

31,

2023,

all

of

the

Fund's

share

classes

outperformed

its

benchmark,

the

Bloomberg

U.S.

Aggregate

Bond

Index.

What

factors

influenced

performance?

The

Fund’s

duration

and

yield

curve

positioning

contributed

to

performance,

as

did

its

allocation

to

structured

securities

and

U.S.

investment-grade

corporate

bonds.

(Duration

is

a

measure

of

interest

rate

sensitivity.)

The

Fund’s

macro

strategies

were

the

largest

detractor

from

performance.

The

Fund’s

cash

position

did

not

have

a

material

impact

on

performance.

Describe

recent

portfolio

activity.

In

the

fourth

quarter

of

2022,

the

investment

adviser

identified

a

number

of

attractive

opportunities

across

the

fixed-income

market

following

the

Fed’s

fastest

rate-hiking

cycle

in

decades.

The

investment

adviser

sought

to

take

advantage

of

these

circumstances

by

adding

to

the

Fund’s

positions

in

higher-quality,

short-dated

assets

that

offered

attractive

yields.

It

maintained

an

active

positioning

within

investment-grade

corporate

bonds

in

an

effort

to

capitalize

on

the

increased

dispersion

in

the

sector,

and

it

increased

the

Fund’s

overweight

in

agency

mortgage-backed

securities

(“MBS”).

At

the

same

time,

it

kept

the

allocation

to

high

yield

bonds

near

historically

low

levels.

The

Fund’s

overall

duration

was

slightly

below

the

benchmark

at

the

end

of

2022,

with

an

overweight

in

U.S.

short-term

bonds

offset

by

a

short

position

in

seven-

to

10-year

bonds

in

Japan.

The

investment

adviser

continued

to

reduce

duration

during

the

second

half

of

the

reporting

period.

The

investment

adviser

rotated

the

Fund’s

holdings

in

securitized

assets

during

the

first

quarter

of

2023,

moving

up

in

quality

by

buying

higher-rated

commercial

mortgage-

backed

securities

and

asset-backed

securities.

In

both

areas,

it

sought

issues

with

structural

protections.

The

investment

adviser

maintained

a

defensive

posture

in

the

emerging

markets

given

concerns

about

tighter

global

central

bank

policies,

weaker

economic

growth

and

reduced

liquidity

in

the

market.

It

also

maintained

a

cautious

approach

to

lower-quality

bonds,

with

a

preference

for

high

yield

issues

over

bank

loans.

The

investment

adviser

slightly

trimmed

the

Fund’s

position

in

investment-grade

corporate

bonds

due

to

unattractive

yield

spreads,

and

it

further

added

to

agency

MBS.

Describe

portfolio

positioning

at

period

end.

The

Fund’s

duration

was

below

that

of

the

index.

It

was

overweight

in

investment-grade

corporate

bonds,

with

a

focus

on

short-dated

securities,

and

it

retained

a

sizable

allocation

to

high-quality

securitized

assets.

The

Fund

was

underweight

in

high

yield

bonds

and

the

emerging

markets.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

March

31,

2023

(continued)

9

Fund

Summary

BlackRock

Sustainable

Total

Return

Fund

Performance

N/A

-

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Average

Annual

Total

Returns

(a)(b)

1

Year

Since

Inception

(c)

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

6-Month

Total

Returns

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

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

4.06‌%

3.17‌%

5.65‌%

(5.19‌)%

N/A‌

(8.02‌)%

N/A‌

Investor

A

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

3.64‌

2.82‌

5.52‌

(5.44‌)

(9.23‌)%

(8.28‌)

(10.83‌)%

Class

K

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

4.11‌

3.23‌

5.67‌

(5.15‌)

N/A‌

(7.99‌)

N/A‌

Bloomberg

U.S.

Aggregate

Bond

Index

(d)

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

—‌

—‌

4.89‌

(4.78‌)

N/A‌

(7.19‌)

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

typically

invests

more

than

90%

of

its

assets

in

a

diversified

portfolio

of

fixed-income

securities.

(c)

The

Fund

commenced

operations

on

October

18,

2021.

(d)

A

broad-based

flagship

benchmark

that

measures

the

investment

grade,

U.S.

dollar-denominated,

fixed-rate

taxable

bond

market.

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(10/01/22)

Ending

Account

Value

(03/31/23)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(10/01/22)

Ending

Account

Value

(03/31/23)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

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

$

1,000.00‌

$

1,056.50‌

$

2.15‌

$

1,000.00‌

$

1,022.84‌

$

2.12‌

0.42‌%

Investor

A

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

1,000.00‌

1,055.20‌

3.48‌

1,000.00‌

1,021.54‌

3.43‌

0.68‌

Class

K

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

1,000.00‌

1,056.70‌

2.00‌

1,000.00‌

1,022.99‌

1.97‌

0.39‌

(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

182/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

U.S.

Government

Sponsored

Agency

Securities

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

40.6‌

%

Corporate

Bonds

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

23.0‌

U.S.

Treasury

Obligations

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

20.8‌

Asset-Backed

Securities

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

10.5‌

Non-Agency

Mortgage-Backed

Securities

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

3.8‌

Foreign

Government

Obligations

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

0.8‌

Municipal

Bonds

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

0.5‌

Preferred

Securities

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

0.0‌

(b)

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(c)

Percent

of

Total

Investments

(a)

AAA/Aaa

(d)

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

66.3‌

%

AA/Aa

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

2.3‌

A

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

10.3‌

BBB/Baa

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

14.7‌

BB/Ba

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

0.1‌

B

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

0.1‌

CC/Ca

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

0.3‌

NR

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

5.9‌

(a)

Excludes

short-term

securities,

options

purchased,

options

written

and

TBA

sale

commitments.

(b)

Represents

less

than

0.1%

of

the

Fund's

total

investments.

(c)

For

financial

reporting

purposes,

credit

quality

ratings

shown

above

reflect

the

highest

rating

assigned

by

either

S&P

Global

Ratings

or

Moody’s

Investors

Service

if

ratings

differ.

These

rating

agencies

are

independent,

nationally

recognized

statistical

rating

organizations

and

are

widely

used.

Investment

grade

ratings

are

credit

ratings

of

BBB/Baa

or

higher.

Below

investment

grade

ratings

are

credit

ratings

of

BB/Ba

or

lower.

Investments

designated

NR

are

not

rated

by

either

rating

agency.

Unrated

investments

do

not

necessarily

indicate

low

credit

quality.

Credit

quality

ratings

are

subject

to

change.

(d)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

About

Fund

Performance

2023

BlackRock

Semi-Annual

Report

to

Shareholders

10

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%

for

BlackRock

Sustainable

High

Yield

Bond

Fund

and

BlackRock

Sustainable

Total

Return

Fund

and

2.25%

for

BlackRock

Sustainable

Low

Duration

Bond

Fund

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.

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 each

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

“Manager”),

each

Fund’s

investment

adviser,

has

contractually

and/or

voluntarily

agreed

to

waive

and/or

reimburse

a

portion

of

each

Fund’s

expenses.

Without

such

waiver(s)

and/or

reimbursement(s),

each

Fund’s

performance

would

have

been

lower.

With

respect

to

each

Fund’s

voluntary

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

waive

and/or

reimburse

or

to

continue

waiving

and/or

reimbursing

its

fees

and

such

voluntary

waiver(s)

may

be

reduced

or

discontinued

at

any

time. With

respect

to

each

Fund’s

contractual

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

continue

waiving

and/or

reimbursing

its

fees

after

the

applicable

termination

date

of

such agreement.

See

the

Notes

to

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

11

Disclosure

of

Expenses

/

Derivative

Financial

Instruments

Shareholders

of

each

Fund

may

incur

the

following

charges:

(a)

transactional

expenses,

such

as

sales

charges;

and

(b)

operating

expenses,

including

investment

advisory

fees,

administration

fees, service

and

distribution

fees,

including

12b-1

fees,

acquired

fund

fees

and

expenses, and

other

fund

expenses.

The

expense

examples shown

(which are

based

on

a

hypothetical

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

through

the

end

of

the

period) are

intended

to

assist

shareholders

both

in

calculating

expenses

based

on

an

investment

in each

Fund

and

in

comparing

these

expenses

with

similar

costs

of

investing

in

other

mutual

funds.

The

expense

examples

provide

information

about

actual

account

values

and

actual

expenses.

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

examples

also

provide

information

about

hypothetical

account

values

and

hypothetical

expenses

based

on

a

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses.

In

order

to

assist

shareholders

in

comparing

the

ongoing

expenses

of

investing

in

these

Funds

and

other

funds,

compare

the

5%

hypothetical

examples

with

the

5%

hypothetical

examples

that

appear

in

shareholder

reports

of

other

funds. 

The

expenses

shown

in

the

expense

examples

are

intended

to

highlight

shareholders’

ongoing

costs

only

and

do

not

reflect

transactional

expenses,

such

as

sales

charges,

if

any.

Therefore,

the

hypothetical

examples

are

useful

in

comparing

ongoing

expenses

only

and

will

not

help

shareholders

determine

the

relative

total

expenses

of

owning

different

funds.

If

these

transactional

expenses

were

included,

shareholder

expenses

would

have

been

higher.

Derivative

Financial

Instruments

The

Funds

may

invest

in

various

derivative

financial

instruments.

These

instruments

are

used

to

obtain

exposure

to

a

security,

commodity,

index,

market,

and/or

other

assets

without

owning

or

taking

physical

custody

of

securities,

commodities

and/or

other

referenced

assets

or

to

manage

market,

equity,

credit,

interest

rate,

foreign

currency

exchange

rate,

commodity

and/or

other

risks.

Derivative

financial

instruments

may

give

rise

to

a

form

of

economic

leverage

and

involve

risks,

including

the

imperfect

correlation

between

the

value

of

a

derivative

financial

instrument

and

the

underlying

asset,

possible

default

of

the

counterparty

to

the

transaction

or

illiquidity

of

the

instrument.

Pursuant

to

Rule

18f-4

under

the

1940

Act,

among

other

things,

the

Funds

must

either

use

derivative

financial

instruments

with

embedded

leverage

in

a

limited

manner

or

comply

with

an

outer

limit

on

fund

leverage

risk

based

on

value-at-risk. The

Funds’

successful

use

of

a

derivative

financial

instrument

depends

on

the

investment

adviser’s

ability

to

predict

pertinent

market

movements

accurately,

which

cannot

be

assured.

The

use

of

these

instruments

may

result

in

losses

greater

than

if

they

had

not

been

used,

may

limit

the

amount

of

appreciation a

Fund

can

realize

on

an

investment

and/or

may

result

in

lower

distributions

paid

to

shareholders.

The

Funds’

investments

in

these

instruments,

if

any,

are

discussed

in

detail

in

the

Notes

to

Financial

Statements.

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

12

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

March

31,

2023

Security

Shares

Shares

Value

Common

Stocks

Chemicals

—

0.1%

Element

Solutions,

Inc.

(a)

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

2,144

$

41,400

Financial

Services

—

0.0%

Block,

Inc.,

Class

A

(b)

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

259

17,780

Ground

Transportation

—

0.1%

Uber

Technologies,

Inc.

(b)

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

939

29,766

IT

Services

—

0.0%

Twilio,

Inc.,

Class

A

(b)

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

87

5,797

Total

Common

Stocks

—

0.2%

(Cost:

$135,166)

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

94,743

Par

(000)

Par

(000)

Corporate

Bonds

Aerospace

&

Defense

—

3.6%

(c)

Bombardier,

Inc.

7.13%,

06/15/26

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

USD

175

175,630

7.88%,

04/15/27

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

124

125,529

6.00%,

02/15/28

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

59

57,452

7.50%,

02/01/29

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

92

93,983

TransDigm,

Inc.

6.25%,

03/15/26

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

454

454,413

6.75%,

08/15/28

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

472

476,720

Triumph

Group,

Inc.,

9.00%,

03/15/28

....

173

173,182

1,556,909

Automobile

Components

—

2.1%

Clarios

Global

LP

(c)

6.75%,

05/15/25

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

100

101,065

6.25%,

05/15/26

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

149

148,627

8.50%,

05/15/27

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

525

526,969

Goodyear

Tire

&

Rubber

Co.

(The)

9.50%,

05/31/25

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

123

126,394

5.63%,

04/30/33

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

2

1,730

904,785

Automobiles

—

0.7%

Ford

Motor

Co.

3.25%,

02/12/32

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

309

242,861

6.10%,

08/19/32

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

53

51,360

294,221

Broadline

Retail

—

0.5%

(c)

ANGI

Group

LLC,

3.88%,

08/15/28

......

49

37,227

Go

Daddy

Operating

Co.

LLC,

3.50%,

03/01/29

77

66,577

Match

Group

Holdings

II

LLC

4.63%,

06/01/28

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

47

43,650

3.63%,

10/01/31

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

17

13,834

NMG

Holding

Co.,

Inc.,

7.13%,

04/01/26

...

44

41,310

202,598

Building

Products

—

0.7%

(c)

Advanced

Drainage

Systems,

Inc.

5.00%,

09/30/27

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

8

7,602

6.38%,

06/15/30

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

174

170,492

Camelot

Return

Merger

Sub,

Inc.,

8.75%,

08/01/28

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

48

44,445

Masonite

International

Corp.,

5.38%,

02/01/28

3

2,865

Standard

Industries,

Inc.

5.00%,

02/15/27

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

5

4,749

4.75%,

01/15/28

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

5

4,671

4.38%,

07/15/30

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

58

50,460

Security

Par

(000)

Par

(000)

Value

Building

Products

(continued)

3.38%,

01/15/31

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

USD

43

$

34,558

319,842

Capital

Markets

—

0.4%

AG

TTMT

Escrow

Issuer

LLC,

8.63%,

09/30/27

(c)

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

33

33,215

Compass

Group

Diversified

Holdings

LLC,

5.25%,

04/15/29

(c)

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

47

41,379

MSCI,

Inc.

(c)

3.63%,

09/01/30

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

32

27,818

3.25%,

08/15/33

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

6

4,914

Northern

Trust

Corp.,

6.13%,

11/02/32

....

60

63,967

171,293

Chemicals

—

3.0%

Ashland

LLC,

3.38%,

09/01/31

(c)

........

117

95,639

Avient

Corp.,

7.13%,

08/01/30

(c)

........

36

37,125

Axalta

Coating

Systems

LLC

(c)

4.75%,

06/15/27

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

150

142,530

3.38%,

02/15/29

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

350

299,874

Element

Solutions,

Inc.,

3.88%,

09/01/28

(c)

.

258

226,431

HB

Fuller

Co.,

4.00%,

02/15/27

........

47

42,959

Herens

Holdco

SARL,

4.75%,

05/15/28

(c)

..

200

161,000

Kobe

U.S.

Midco

2,

Inc.,

9.25%,

11/01/26

(c)(d)

57

41,040

WR

Grace

Holdings

LLC

(c)

4.88%,

06/15/27

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

24

23,134

5.63%,

08/15/29

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

240

203,400

7.38%,

03/01/31

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

29

29,110

1,302,242

Commercial

Services

&

Supplies

—

3.1%

ADT

Security

Corp.

(The)

(c)

4.13%,

08/01/29

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

3

2,675

4.88%,

07/15/32

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

17

14,999

Allied

Universal

Holdco

LLC

(c)

6.63%,

07/15/26

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

180

172,981

9.75%,

07/15/27

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

160

142,602

4.63%,

06/01/28

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

200

169,250

APi

Group

DE,

Inc.

(c)

4.13%,

07/15/29

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

19

16,303

4.75%,

10/15/29

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

24

21,116

APX

Group,

Inc.

(c)

6.75%,

02/15/27

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

26

25,870

5.75%,

07/15/29

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

80

71,600

Aramark

Services,

Inc.

(c)

5.00%,

04/01/25

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

9

8,857

5.00%,

02/01/28

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

117

110,736

Covanta

Holding

Corp.

4.88%,

12/01/29

(c)

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

20

17,795

5.00%,

09/01/30

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

15

12,903

Garda

World

Security

Corp.

(c)

4.63%,

02/15/27

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

22

19,748

7.75%,

02/15/28

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

63

62,093

GFL

Environmental,

Inc.

(c)

4.25%,

06/01/25

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

3

2,927

3.75%,

08/01/25

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

5

4,805

5.13%,

12/15/26

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

43

42,044

4.00%,

08/01/28

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

4

3,634

3.50%,

09/01/28

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

6

5,430

4.75%,

06/15/29

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

88

82,201

4.38%,

08/15/29

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

16

14,323

Legends

Hospitality

Holding

Co.

LLC,

5.00%,

02/01/26

(c)

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

41

36,689

Madison

IAQ

LLC,

5.88%,

06/30/29

(c)

.....

95

73,388

Neptune

Bidco

US,

Inc.,

9.29%,

04/15/29

(c)

.

18

16,688

Prime

Security

Services

Borrower

LLC

(c)

5.75%,

04/15/26

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

92

91,310

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

13

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

6.25%,

01/15/28

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

USD

50

$

46,750

Stericycle,

Inc.,

3.88%,

01/15/29

(c)

.......

29

25,317

1,315,034

Communications

Equipment

—

1.1%

CommScope

Technologies

LLC,

6.00%,

06/15/25

(c)

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

113

106,418

CommScope,

Inc.

(c)

6.00%,

03/01/26

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

41

39,569

8.25%,

03/01/27

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

13

10,649

7.13%,

07/01/28

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

13

9,588

4.75%,

09/01/29

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

81

67,515

Nokia

OYJ,

6.63%,

05/15/39

..........

96

95,820

Viasat,

Inc.

(c)

5.63%,

09/15/25

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

59

55,936

5.63%,

04/15/27

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

25

23,475

Viavi

Solutions,

Inc.,

3.75%,

10/01/29

(c)

...

60

51,310

460,280

Construction

&

Engineering

—

0.2%

(c)

Dycom

Industries,

Inc.,

4.50%,

04/15/29

...

31

27,977

MasTec,

Inc.,

4.50%,

08/15/28

.........

40

36,972

64,949

Consumer

Finance

—

1.8%

Ford

Motor

Credit

Co.

LLC

4.13%,

08/04/25

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

200

190,253

4.39%,

01/08/26

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

200

189,750

7.35%,

03/06/30

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

200

205,500

OneMain

Finance

Corp.

6.88%,

03/15/25

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

10

9,690

7.13%,

03/15/26

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

53

50,949

6.63%,

01/15/28

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

20

18,336

4.00%,

09/15/30

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

95

71,250

SLM

Corp.,

3.13%,

11/02/26

..........

41

34,850

770,578

Consumer

Staples

Distribution

&

Retail

—

0.9%

(c)

Albertsons

Cos.,

Inc.

3.25%,

03/15/26

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

49

46,109

4.63%,

01/15/27

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

8

7,737

6.50%,

02/15/28

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

44

44,110

3.50%,

03/15/29

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

5

4,350

4.88%,

02/15/30

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

103

96,138

United

Natural

Foods,

Inc.,

6.75%,

10/15/28

51

47,400

US

Foods,

Inc.

6.25%,

04/15/25

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

78

78,703

4.75%,

02/15/29

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

47

43,416

4.63%,

06/01/30

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

5

4,511

372,474

Containers

&

Packaging

—

4.6%

ARD

Finance

SA,

6.50%,

06/30/27

(c)

.....

200

152,980

Ardagh

Metal

Packaging

Finance

USA

LLC

(c)

6.00%,

06/15/27

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

200

198,205

4.00%,

09/01/29

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

200

156,500

Ball

Corp.,

3.13%,

09/15/31

..........

189

156,397

Clydesdale

Acquisition

Holdings,

Inc.

(c)

6.63%,

04/15/29

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

118

113,575

8.75%,

04/15/30

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

76

69,064

Crown

Americas

LLC,

4.25%,

09/30/26

...

124

118,875

Graphic

Packaging

International

LLC,

3.50%,

03/15/28

(c)

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

98

89,690

Mauser

Packaging

Solutions

Holding

Co.

(c)

7.88%,

08/15/26

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

577

577,000

9.25%,

04/15/27

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

6

5,544

Sealed

Air

Corp.

(c)

4.00%,

12/01/27

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

70

65,324

Security

Par

(000)

Par

(000)

Value

Containers

&

Packaging

(continued)

6.13%,

02/01/28

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

USD

44

$

44,491

Trivium

Packaging

Finance

BV,

8.50%,

08/15/27

(c)(e)

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

228

207,480

1,955,125

Distributors

—

0.2%

(c)

American

Builders

&

Contractors

Supply

Co.,

Inc.,

3.88%,

11/15/29

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

20

17,077

Resideo

Funding,

Inc.,

4.00%,

09/01/29

...

8

6,652

Ritchie

Bros

Holdings,

Inc.

6.75%,

03/15/28

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

18

18,537

7.75%,

03/15/31

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

59

61,833

104,099

Diversified

Consumer

Services

—

0.4%

Sotheby's,

5.88%,

06/01/29

(c)

..........

200

165,864

Diversified

REITs

—

0.5%

(c)

HAT

Holdings

I

LLC,

3.38%,

06/15/26

....

106

91,955

Iron

Mountain

Information

Management

Services,

Inc.,

5.00%,

07/15/32

.......

46

39,502

Uniti

Group

LP,

10.50%,

02/15/28

.......

104

100,880

232,337

Diversified

Telecommunication

Services

—

6.4%

Altice

France

SA,

5.13%,

07/15/29

(c)

.....

200

150,500

CCO

Holdings

LLC

(c)

5.00%,

02/01/28

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

73

67,342

6.38%,

09/01/29

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

168

160,440

4.75%,

03/01/30

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

33

28,591

4.25%,

02/01/31

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

125

102,208

7.38%,

03/01/31

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

14

13,781

4.75%,

02/01/32

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

78

65,509

4.50%,

06/01/33

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

25

20,126

4.25%,

01/15/34

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

92

71,955

Frontier

Communications

Holdings

LLC

(c)

5.88%,

10/15/27

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

65

59,091

5.00%,

05/01/28

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

38

32,975

8.75%,

05/15/30

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

179

178,286

Iliad

Holding

SASU

(c)

6.50%,

10/15/26

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

200

190,604

7.00%,

10/15/28

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

294

278,944

Level

3

Financing,

Inc.

(c)

3.40%,

03/01/27

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

59

46,666

4.63%,

09/15/27

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

32

19,240

4.25%,

07/01/28

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

159

89,708

3.63%,

01/15/29

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

21

11,611

3.75%,

07/15/29

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

59

31,456

3.88%,

11/15/29

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

108

78,163

Lumen

Technologies,

Inc.

(c)

4.00%,

02/15/27

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

100

66,000

4.50%,

01/15/29

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

16

7,160

Sprint

Capital

Corp.

6.88%,

11/15/28

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

234

251,440

8.75%,

03/15/32

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

197

239,848

Telecom

Italia

Capital

SA

6.38%,

11/15/33

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

60

54,325

6.00%,

09/30/34

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

71

60,883

Zayo

Group

Holdings,

Inc.

(c)

4.00%,

03/01/27

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

273

207,480

6.13%,

03/01/28

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

265

161,173

2,745,505

Electric

Utilities

—

2.3%

NextEra

Energy

Operating

Partners

LP,

4.25%,

09/15/24

(c)

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

233

223,389

NRG

Energy,

Inc.

5.75%,

01/15/28

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

8

7,845

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

14

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

5.92%),

10.25%

(c)(d)(f)

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

USD

101

$

96,517

5.25%,

06/15/29

(c)

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

3

2,785

3.88%,

02/15/32

(c)

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

17

13,600

7.00%,

03/15/33

(c)

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

45

46,616

Pattern

Energy

Operations

LP,

4.50%,

08/15/28

(c)

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

674

616,605

1,007,357

Electrical

Equipment

—

0.2%

Vertiv

Group

Corp.,

4.13%,

11/15/28

(c)

....

100

88,235

Electronic

Equipment,

Instruments

&

Components

—

0.3%

Sensata

Technologies,

Inc.,

4.38%,

02/15/30

(c)

160

145,785

Entertainment

—

0.5%

(c)

Lions

Gate

Capital

Holdings

LLC,

5.50%,

04/15/29

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

48

31,560

Live

Nation

Entertainment,

Inc.

5.63%,

03/15/26

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

4

3,870

6.50%,

05/15/27

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

107

108,150

4.75%,

10/15/27

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

46

42,550

3.75%,

01/15/28

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

37

33,115

219,245

Financial

Services

—

2.3%

Block,

Inc.

2.75%,

06/01/26

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

52

47,412

3.50%,

06/01/31

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

309

253,766

Enact

Holdings,

Inc.,

6.50%,

08/15/25

(c)

...

65

63,375

MGIC

Investment

Corp.,

5.25%,

08/15/28

..

92

87,446

Nationstar

Mortgage

Holdings,

Inc.

(c)

6.00%,

01/15/27

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

27

24,503

5.75%,

11/15/31

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

26

20,167

Rocket

Mortgage

LLC,

2.88%,

10/15/26

(c)

..

98

87,710

Sabre

GLBL,

Inc.

(c)

9.25%,

04/15/25

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

32

30,144

7.38%,

09/01/25

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

72

64,331

11.25%,

12/15/27

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

25

23,296

Shift4

Payments

LLC,

4.63%,

11/01/26

(c)

...

80

75,200

Verscend

Escrow

Corp.,

9.75%,

08/15/26

(c)

.

208

208,000

985,350

Food

Products

—

1.8%

(c)

Chobani

LLC

7.50%,

04/15/25

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

81

78,977

4.63%,

11/15/28

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

173

157,646

Darling

Ingredients,

Inc.,

6.00%,

06/15/30

..

162

161,449

Lamb

Weston

Holdings,

Inc.

4.88%,

05/15/28

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

180

174,591

4.13%,

01/31/30

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

131

119,865

4.38%,

01/31/32

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

96

87,063

779,591

Gas

Utilities

—

0.0%

Suburban

Propane

Partners

LP,

5.00%,

06/01/31

(c)

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

16

13,980

Ground

Transportation

—

1.4%

(c)

Hertz

Corp.

(The)

4.63%,

12/01/26

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

30

27,165

5.00%,

12/01/29

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

24

19,877

NESCO

Holdings

II,

Inc.,

5.50%,

04/15/29

..

48

43,425

Uber

Technologies,

Inc.

8.00%,

11/01/26

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

14

14,353

7.50%,

09/15/27

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

146

150,542

6.25%,

01/15/28

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

98

97,755

4.50%,

08/15/29

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

180

164,025

Security

Par

(000)

Par

(000)

Value

Ground

Transportation

(continued)

Williams

Scotsman

International,

Inc.,

4.63%,

08/15/28

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

USD

76

$

69,136

XPO

Escrow

Sub

LLC,

7.50%,

11/15/27

...

21

21,840

608,118

Health

Care

Equipment

&

Supplies

—

1.9%

Avantor

Funding,

Inc.

(c)

4.63%,

07/15/28

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

131

124,122

3.88%,

11/01/29

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

119

106,505

Embecta

Corp.,

6.75%,

02/15/30

(c)

......

19

17,290

Garden

Spinco

Corp.,

8.63%,

07/20/30

(c)

...

46

49,147

Hologic,

Inc.,

3.25%,

02/15/29

(c)

........

145

129,002

Medline

Borrower

LP

(c)

3.88%,

04/01/29

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

20

17,350

5.25%,

10/01/29

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

220

190,875

Teleflex,

Inc.

4.63%,

11/15/27

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

3

2,930

4.25%,

06/01/28

(c)

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

183

174,018

811,239

Health

Care

Providers

&

Services

—

3.7%

Acadia

Healthcare

Co.,

Inc.

(c)

5.50%,

07/01/28

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

26

25,188

5.00%,

04/15/29

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

5

4,700

AdaptHealth

LLC,

6.13%,

08/01/28

(c)

.....

45

41,317

AHP

Health

Partners,

Inc.,

5.75%,

07/15/29

(c)

115

96,600

Cano

Health

LLC,

6.25%,

10/01/28

(c)

.....

17

9,307

Centene

Corp.

2.45%,

07/15/28

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

19

16,530

3.00%,

10/15/30

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

191

160,837

2.50%,

03/01/31

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

47

38,061

2.63%,

08/01/31

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

25

20,258

Community

Health

Systems,

Inc.

(c)

6.00%,

01/15/29

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

142

120,115

5.25%,

05/15/30

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

102

80,014

4.75%,

02/15/31

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

49

36,175

Encompass

Health

Corp.

4.50%,

02/01/28

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

109

101,598

4.75%,

02/01/30

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

5

4,546

4.63%,

04/01/31

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

62

54,160

HCA,

Inc.,

4.63%,

03/15/52

(c)

..........

41

34,042

HealthEquity,

Inc.,

4.50%,

10/01/29

(c)

.....

96

85,293

Legacy

LifePoint

Health

LLC

(c)

6.75%,

04/15/25

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

13

12,337

4.38%,

02/15/27

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

29

23,718

ModivCare,

Inc.,

5.88%,

11/15/25

(c)

......

19

18,216

Molina

Healthcare,

Inc.

(c)

4.38%,

06/15/28

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

30

27,909

3.88%,

11/15/30

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

10

8,725

3.88%,

05/15/32

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

8

6,723

Option

Care

Health,

Inc.,

4.38%,

10/31/29

(c)

.

56

49,453

Pediatrix

Medical

Group,

Inc.,

5.38%,

02/15/30

(c)

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

118

106,811

Surgery

Center

Holdings,

Inc.

(c)

6.75%,

07/01/25

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

55

54,410

10.00%,

04/15/27

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

76

77,490

Tenet

Healthcare

Corp.

4.88%,

01/01/26

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

67

65,684

6.25%,

02/01/27

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

25

24,585

5.13%,

11/01/27

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

29

27,841

6.13%,

10/01/28

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

35

33,545

4.25%,

06/01/29

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

20

18,094

6.13%,

06/15/30

(c)

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

114

112,461

1,596,743

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

15

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

—

5.8%

1011778

BC

ULC

(c)

3.88%,

01/15/28

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

USD

26

$

24,180

4.38%,

01/15/28

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

82

75,698

4.00%,

10/15/30

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

14

12,005

Boyne

USA,

Inc.,

4.75%,

05/15/29

(c)

.....

110

98,205

Caesars

Entertainment,

Inc.

(c)

6.25%,

07/01/25

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

183

183,009

8.13%,

07/01/27

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

241

245,820

4.63%,

10/15/29

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

159

139,045

7.00%,

02/15/30

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

328

333,740

Caesars

Resort

Collection

LLC,

5.75%,

07/01/25

(c)

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

92

92,020

CDI

Escrow

Issuer,

Inc.,

5.75%,

04/01/30

(c)

.

148

142,944

Cedar

Fair

LP,

5.50%,

05/01/25

(c)

.......

95

94,940

Churchill

Downs,

Inc.

(c)

5.50%,

04/01/27

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

2

1,958

4.75%,

01/15/28

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

22

20,602

Fertitta

Entertainment

LLC

(c)

4.63%,

01/15/29

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

23

20,187

6.75%,

01/15/30

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

7

5,759

Hilton

Domestic

Operating

Co.,

Inc.

5.75%,

05/01/28

(c)

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

57

57,000

3.75%,

05/01/29

(c)

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

66

59,070

4.88%,

01/15/30

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

105

100,575

4.00%,

05/01/31

(c)

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

42

36,779

3.63%,

02/15/32

(c)

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

18

15,188

MajorDrive

Holdings

IV

LLC,

6.38%,

06/01/29

(c)

67

49,609

Merlin

Entertainments

Ltd.,

5.75%,

06/15/26

(c)

200

189,695

MGM

Resorts

International,

5.75%,

06/15/25

90

89,783

Midwest

Gaming

Borrower

LLC,

4.88%,

05/01/29

(c)

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

53

46,075

Scientific

Games

International,

Inc.,

7.25%,

11/15/29

(c)

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

44

44,085

Six

Flags

Theme

Parks,

Inc.,

7.00%,

07/01/25

(c)

33

33,341

Vail

Resorts,

Inc.,

6.25%,

05/15/25

(c)

.....

93

93,218

Wyndham

Hotels

&

Resorts,

Inc.,

4.38%,

08/15/28

(c)

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

71

65,408

Wynn

Resorts

Finance

LLC,

5.13%,

10/01/29

(c)

65

59,043

Yum!

Brands,

Inc.,

4.75%,

01/15/30

(c)

.....

85

81,208

2,510,189

Household

Durables

—

0.8%

Ashton

Woods

USA

LLC,

4.63%,

08/01/29

(c)

25

20,250

Brookfield

Residential

Properties,

Inc.,

5.00%,

06/15/29

(c)

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

97

74,205

CD&R

Smokey

Buyer,

Inc.,

6.75%,

07/15/25

(c)

68

58,310

KB

Home,

7.25%,

07/15/30

...........

15

15,214

SWF

Escrow

Issuer

Corp.,

6.50%,

10/01/29

(c)

71

43,665

Taylor

Morrison

Communities,

Inc.,

5.88%,

06/15/27

(c)

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

68

66,710

Tempur

Sealy

International,

Inc.

(c)

4.00%,

04/15/29

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

17

14,956

3.88%,

10/15/31

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

31

25,885

TRI

Pointe

Homes,

Inc.,

5.25%,

06/01/27

..

22

20,900

340,095

Household

Products

—

0.0%

Spectrum

Brands,

Inc.,

5.00%,

10/01/29

(c)

..

18

15,622

Independent

Power

and

Renewable

Electricity

Producers

—

2.4%

Clearway

Energy

Operating

LLC

(c)

4.75%,

03/15/28

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

730

697,150

3.75%,

01/15/32

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

86

71,473

TransAlta

Corp.,

7.75%,

11/15/29

.......

238

250,111

1,018,734

Security

Par

(000)

Par

(000)

Value

Insurance

—

3.5%

(c)

Alliant

Holdings

Intermediate

LLC

4.25%,

10/15/27

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

USD

148

$

132,562

6.75%,

10/15/27

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

317

294,017

6.75%,

04/15/28

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

136

134,470

5.88%,

11/01/29

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

282

237,809

AmWINS

Group,

Inc.,

4.88%,

06/30/29

....

21

18,585

GTCR

AP

Finance,

Inc.,

8.00%,

05/15/27

..

24

22,903

HUB

International

Ltd.,

7.00%,

05/01/26

...

113

111,057

Jones

Deslauriers

Insurance

Management,

Inc.

8.50%,

03/15/30

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

62

64,261

10.50%,

12/15/30

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

61

61,440

NFP

Corp.

4.88%,

08/15/28

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

120

108,240

6.88%,

08/15/28

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

294

252,293

7.50%,

10/01/30

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

24

23,190

Ryan

Specialty

Group

LLC,

4.38%,

02/01/30

34

29,729

1,490,556

IT

Services

—

0.8%

Ahead

DB

Holdings

LLC,

6.63%,

05/01/28

(c)

.

57

47,204

Booz

Allen

Hamilton,

Inc.,

4.00%,

07/01/29

(c)

93

83,925

Gartner,

Inc.

(c)

4.50%,

07/01/28

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

51

48,409

3.63%,

06/15/29

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

23

20,523

Northwest

Fiber

LLC

(c)

4.75%,

04/30/27

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

54

46,133

6.00%,

02/15/28

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

12

8,879

Presidio

Holdings,

Inc.,

4.88%,

02/01/27

(c)

..

8

7,645

Twilio,

Inc.

3.63%,

03/15/29

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

18

15,525

3.88%,

03/15/31

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

95

80,610

358,853

Leisure

Products

—

0.2%

Mattel,

Inc.

6.20%,

10/01/40

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

53

47,734

5.45%,

11/01/41

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

62

52,204

99,938

Life

Sciences

Tools

&

Services

—

0.1%

Charles

River

Laboratories

International,

Inc.

(c)

4.25%,

05/01/28

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

32

29,948

4.00%,

03/15/31

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

14

12,250

42,198

Machinery

—

0.7%

Mueller

Water

Products,

Inc.,

4.00%,

06/15/29

(c)

43

38,411

Terex

Corp.,

5.00%,

05/15/29

(c)

........

63

58,622

Titan

International,

Inc.,

7.00%,

04/30/28

..

23

20,723

TK

Elevator

US

Newco,

Inc.,

5.25%,

07/15/27

(c)

200

188,820

306,576

Media

—

4.6%

Altice

Financing

SA,

5.75%,

08/15/29

(c)

....

400

318,000

AMC

Networks,

Inc.,

4.25%,

02/15/29

....

39

23,978

Cable

One,

Inc.

0.00%,

03/15/26

(g)(h)

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

22

17,358

1.13%,

03/15/28

(g)

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

147

107,457

4.00%,

11/15/30

(c)

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

218

177,446

Charter

Communications

Operating

LLC,

5.50%,

04/01/63

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

9

7,303

Clear

Channel

Outdoor

Holdings,

Inc.

(c)

5.13%,

08/15/27

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

163

146,292

7.75%,

04/15/28

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

133

99,750

7.50%,

06/01/29

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

121

85,995

CSC

Holdings

LLC

5.25%,

06/01/24

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

5

4,825

4.13%,

12/01/30

(c)

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

200

143,638

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

16

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Media

(continued)

DirecTV

Financing

LLC,

5.88%,

08/15/27

(c)

.

USD

42

$

38,040

GCI

LLC,

4.75%,

10/15/28

(c)

..........

8

6,902

Outfront

Media

Capital

LLC

(c)

5.00%,

08/15/27

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

111

99,992

4.25%,

01/15/29

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

3

2,490

4.63%,

03/15/30

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

23

19,181

Radiate

Holdco

LLC,

6.50%,

09/15/28

(c)

...

156

63,960

Sinclair

Television

Group,

Inc.,

4.13%,

12/01/30

(c)

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

65

52,406

Sirius

XM

Radio,

Inc.

(c)

3.13%,

09/01/26

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

92

82,984

5.00%,

08/01/27

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

46

43,066

TEGNA,

Inc.,

4.75%,

03/15/26

(c)

........

5

4,743

Telenet

Finance

Luxembourg

Notes

SARL,

5.50%,

03/01/28

(c)

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

200

184,000

Univision

Communications,

Inc.

(c)

6.63%,

06/01/27

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

36

34,135

7.38%,

06/30/30

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

48

45,381

Ziggo

Bond

Co.

BV,

5.13%,

02/28/30

(c)

....

200

160,811

1,970,133

Metals

&

Mining

—

4.3%

(c)

Big

River

Steel

LLC,

6.63%,

01/31/29

....

727

721,446

Constellium

SE

5.63%,

06/15/28

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

250

236,006

3.75%,

04/15/29

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

250

216,553

Novelis

Corp.

3.25%,

11/15/26

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

390

356,407

4.75%,

01/30/30

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

14

12,863

3.88%,

08/15/31

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

346

291,415

1,834,690

Mortgage

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

(c)

Ladder

Capital

Finance

Holdings

LLLP,

5.25%,

10/01/25

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

6

5,279

Starwood

Property

Trust,

Inc.,

4.38%,

01/15/27

18

14,876

20,155

Oil,

Gas

&

Consumable

Fuels

—

2.4%

EnLink

Midstream

Partners

LP

4.85%,

07/15/26

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

23

22,137

5.60%,

04/01/44

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

52

42,441

ITT

Holdings

LLC,

6.50%,

08/01/29

(c)

.....

98

82,743

New

Fortress

Energy,

Inc.

(c)

6.75%,

09/15/25

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

113

108,763

6.50%,

09/30/26

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

45

41,400

Occidental

Petroleum

Corp.

5.88%,

09/01/25

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

2

2,016

5.55%,

03/15/26

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

228

229,710

8.88%,

07/15/30

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

25

29,079

6.63%,

09/01/30

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

85

89,519

6.13%,

01/01/31

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

4

4,150

7.50%,

05/01/31

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

1

1,103

6.45%,

09/15/36

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

8

8,411

6.20%,

03/15/40

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

378

380,041

6.60%,

03/15/46

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

2

2,103

1,043,616

Passenger

Airlines

—

2.3%

(c)

American

Airlines,

Inc.

11.75%,

07/15/25

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

229

250,535

5.50%,

04/20/26

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

15

14,854

7.25%,

02/15/28

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

17

16,533

5.75%,

04/20/29

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

232

222,884

Mileage

Plus

Holdings

LLC,

6.50%,

06/20/27

137

136,410

United

Airlines,

Inc.

4.38%,

04/15/26

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

187

178,905

Security

Par

(000)

Par

(000)

Value

Passenger

Airlines

(continued)

4.63%,

04/15/29

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

USD

203

$

183,614

1,003,735

Personal

Care

Products

—

0.1%

Prestige

Brands,

Inc.,

3.75%,

04/01/31

(c)

...

25

21,190

Pharmaceuticals

—

0.7%

(c)

Catalent

Pharma

Solutions,

Inc.

3.13%,

02/15/29

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

80

70,329

3.50%,

04/01/30

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

39

34,274

Organon

&

Co.,

5.13%,

04/30/31

.......

200

177,528

282,131

Professional

Services

—

0.7%

(c)

AMN

Healthcare,

Inc.

4.63%,

10/01/27

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

25

23,173

4.00%,

04/15/29

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

73

64,605

CoreLogic,

Inc.,

4.50%,

05/01/28

.......

48

36,420

Dun

&

Bradstreet

Corp.

(The),

5.00%,

12/15/29

100

86,587

Korn

Ferry,

4.63%,

12/15/27

..........

87

82,215

293,000

Real

Estate

Management

&

Development

—

0.7%

(c)

Cushman

&

Wakefield

US

Borrower

LLC,

6.75%,

05/15/28

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

154

137,872

Howard

Hughes

Corp.

(The)

5.38%,

08/01/28

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

65

59,190

4.38%,

02/01/31

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

44

35,420

Realogy

Group

LLC,

5.75%,

01/15/29

....

93

69,607

302,089

Retail

REITs

—

0.1%

Brookfield

Property

REIT,

Inc.,

4.50%,

04/01/27

(c)

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

43

34,507

Semiconductors

&

Semiconductor

Equipment

—

0.9%

(c)

Entegris

Escrow

Corp.,

4.75%,

04/15/29

...

278

262,822

Entegris,

Inc.

4.38%,

04/15/28

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

44

39,751

3.63%,

05/01/29

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

28

24,168

Synaptics,

Inc.,

4.00%,

06/15/29

........

68

58,557

385,298

Software

—

6.6%

Alteryx,

Inc.,

8.75%,

03/15/28

(c)

........

51

51,330

AthenaHealth

Group,

Inc.,

6.50%,

02/15/30

(c)

219

177,578

Black

Knight

InfoServ

LLC,

3.63%,

09/01/28

(c)

96

87,240

Boxer

Parent

Co.,

Inc.

(c)

7.13%,

10/02/25

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

53

52,747

9.13%,

03/01/26

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

66

64,002

Camelot

Finance

SA,

4.50%,

11/01/26

(c)

...

31

29,295

Central

Parent,

Inc.,

7.25%,

06/15/29

(c)

....

106

104,185

Clarivate

Science

Holdings

Corp.

(c)

3.88%,

07/01/28

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

361

322,181

4.88%,

07/01/29

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

196

177,257

Cloud

Software

Group

Holdings,

Inc.,

6.50%,

03/31/29

(c)

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

617

545,801

Consensus

Cloud

Solutions,

Inc.

(c)

6.00%,

10/15/26

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

17

14,769

6.50%,

10/15/28

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

15

12,439

Crowdstrike

Holdings,

Inc.,

3.00%,

02/15/29

5

4,364

Elastic

NV,

4.13%,

07/15/29

(c)

.........

151

128,916

Fair

Isaac

Corp.,

4.00%,

06/15/28

(c)

......

119

110,372

Gen

Digital,

Inc.,

6.75%,

09/30/27

(c)

......

68

68,354

McAfee

Corp.,

7.38%,

02/15/30

(c)

.......

185

155,121

MicroStrategy,

Inc.,

6.13%,

06/15/28

(c)

....

65

57,688

NCR

Corp.,

6.13%,

09/01/29

(c)

.........

45

44,385

Open

Text

Corp.,

6.90%,

12/01/27

(c)

......

181

186,720

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

17

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Software

(continued)

PTC,

Inc.

(c)

3.63%,

02/15/25

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

USD

49

$

47,257

4.00%,

02/15/28

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

33

30,837

SS&C

Technologies,

Inc.,

5.50%,

09/30/27

(c)

102

98,970

Veritas

US,

Inc.,

7.50%,

09/01/25

(c)

......

75

56,457

ZoomInfo

Technologies

LLC,

3.88%,

02/01/29

(c)

244

211,237

2,839,502

Specialized

REITs

—

0.7%

Iron

Mountain,

Inc.

(c)

5.00%,

07/15/28

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

5

4,653

5.25%,

07/15/30

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

6

5,410

5.63%,

07/15/32

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

33

30,147

SBA

Communications

Corp.

3.88%,

02/15/27

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

175

165,206

3.13%,

02/01/29

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

95

82,644

288,060

Specialty

Retail

—

1.8%

(c)

Arko

Corp.,

5.13%,

11/15/29

..........

49

40,557

Asbury

Automotive

Group,

Inc.,

5.00%,

02/15/32

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

40

35,040

GYP

Holdings

III

Corp.,

4.63%,

05/01/29

...

117

100,035

Lithia

Motors,

Inc.,

3.88%,

06/01/29

......

43

37,195

PetSmart,

Inc.,

7.75%,

02/15/29

........

250

245,403

Specialty

Building

Products

Holdings

LLC,

6.38%,

09/30/26

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

14

12,866

SRS

Distribution,

Inc.

4.63%,

07/01/28

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

96

85,257

6.13%,

07/01/29

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

91

76,778

6.00%,

12/01/29

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

81

66,879

Staples,

Inc.,

7.50%,

04/15/26

.........

72

63,081

763,091

Textiles,

Apparel

&

Luxury

Goods

—

0.9%

(c)

Crocs,

Inc.

4.25%,

03/15/29

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

48

42,102

4.13%,

08/15/31

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

55

45,315

Hanesbrands,

Inc.,

9.00%,

02/15/31

.....

74

75,757

Kontoor

Brands,

Inc.,

4.13%,

11/15/29

....

30

25,746

Levi

Strauss

&

Co.,

3.50%,

03/01/31

.....

132

112,530

William

Carter

Co.

(The),

5.63%,

03/15/27

..

94

91,364

392,814

Trading

Companies

&

Distributors

—

1.9%

(c)

Beacon

Roofing

Supply,

Inc.,

4.13%,

05/15/29

25

22,059

Boise

Cascade

Co.,

4.88%,

07/01/30

.....

61

53,918

Foundation

Building

Materials,

Inc.,

6.00%,

03/01/29

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

23

18,230

Herc

Holdings,

Inc.,

5.50%,

07/15/27

.....

78

75,270

Imola

Merger

Corp.,

4.75%,

05/15/29

.....

107

95,721

United

Rentals

North

America,

Inc.,

6.00%,

12/15/29

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

307

311,228

WESCO

Distribution,

Inc.,

7.25%,

06/15/28

.

226

232,057

808,483

Wireless

Telecommunication

Services

—

1.3%

(c)

Connect

Finco

SARL,

6.75%,

10/01/26

....

333

313,020

Vmed

O2

UK

Financing

I

plc,

4.75%,

07/15/31

296

253,737

566,757

Total

Corporate

Bonds

—

88.9%

(Cost:

$41,681,095)

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

38,225,790

Security

Par

(000)

Par

(000)

Value

Floating

Rate

Loan

Interests

Chemicals

—

0.1%

(d)

Aruba

Investments

Holdings

LLC,

2nd

Lien

Term

Loan,

(1-mo.

LIBOR

USD

at

0.75%

Floor

+

7.75%),

12.59%

,

 11/24/28

.....

USD

12

$

10,829

WR

Grace

Holdings

LLC,

Term

Loan,

(3-mo.

LIBOR

USD

at

0.50%

Floor

+

3.75%),

8.94%

,

 09/22/28

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

25

25,143

35,972

Commercial

Services

&

Supplies

—

0.2%

PECF

USS

Intermediate

Holding

III

Corp.,

Term

Loan,

(1-mo.

LIBOR

USD

at

0.50%

Floor

+

4.25%),

9.09%

,

 12/15/28

(d)

..........

131

110,072

Containers

&

Packaging

—

0.1%

Mauser

Packaging

Solutions

Holding

Co.,

Term

Loan,

(1-mo.

CME

Term

SOFR

+

4.00%),

8.78%

,

 08/14/26

(d)

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

30

29,711

Diversified

Consumer

Services

—

0.1%

Ascend

Learning

LLC,

2nd

Lien

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

5.75%),

10.66%

,

 12/10/29

(d)

..........

29

24,891

Diversified

Telecommunication

Services

—

1.2%

(d)

Cablevision

Lightpath

LLC,

Term

Loan,

(1-mo.

LIBOR

USD

at

0.50%

Floor

+

3.25%),

7.93%

,

 11/30/27

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

98

97,278

Frontier

Communications

Holdings

LLC,

Term

Loan

B,

(1-mo.

LIBOR

USD

at

0.75%

Floor

+

3.75%),

8.63%

,

 05/01/28

..........

104

98,239

Radiate

Holdco

LLC,

Term

Loan,

(1-mo.

LIBOR

USD

at

0.75%

Floor

+

3.25%),

8.09%

,

 09/25/26

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

201

164,109

Zayo

Group

Holdings,

Inc.,

Term

Loan,

(1-mo.

LIBOR

USD

+

3.00%),

7.84%

,

 03/09/27

.

175

142,044

501,670

Financial

Services

—

0.4%

Altice

France

SA,

Term

Loan

B14,

(3-mo.

CME

Term

SOFR

+

5.50%),

10.17%

,

 08/15/28

(d)(i)

187

177,663

Food

Products

—

0.0%

Chobani

LLC,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

1.00%

Floor

+

3.50%),

8.42%

,

 10/25/27

(d)(i)

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

7

6,486

Health

Care

Equipment

&

Supplies

—

0.0%

Bausch

+

Lomb

Corp.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.25%),

8.46%

,

 05/10/27

(d)

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

3

2,795

Health

Care

Providers

&

Services

—

0.0%

Surgery

Center

Holdings,

Inc.,

Term

Loan,

(1-

mo.

LIBOR

USD

at

0.75%

Floor

+

3.75%),

8.46%

,

 08/31/26

(d)

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

18

17,848

Health

Care

Technology

—

1.6%

(d)

Athenahealth

Group,

Inc.,

Delayed

Draw

Term

Loan,

02/15/29

(j)

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

40

37,424

Athenahealth

Group,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.50%),

8.26%

,

 02/15/29

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

326

304,635

Verscend

Holding

Corp.,

Term

Loan

B1,

(1-mo.

LIBOR

USD

+

4.00%),

8.84%

,

 08/27/25

.

336

335,540

677,599

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

18

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

—

0.5%

(d)

Fertitta

Entertainment

LLC,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

4.00%),

8.81%

,

 01/27/29

...........

USD

172

$

169,021

IRB

Holding

Corp.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.75%

Floor

+

3.00%),

7.91%

,

 12/15/27

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

35

34,359

203,380

Household

Durables

—

0.1%

SWF

Holdings

I

Corp.,

1st

Lien

Term

Loan,

(1-

mo.

LIBOR

USD

at

0.75%

Floor

+

4.00%),

8.75%

,

 10/06/28

(d)

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

72

60,586

Insurance

—

0.8%

(d)

Alliant

Holdings

Intermediate

LLC,

Term

Loan

B4,

(1-mo.

LIBOR

USD

at

0.50%

Floor

+

3.50%),

8.28%

,

 11/05/27

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

23

22,499

Alliant

Holdings

Intermediate

LLC,

Term

Loan

B5,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.50%),

8.35%

,

 11/05/27

..........

50

48,872

AssuredPartners,

Inc.,

Term

Loan,

(1-mo.

LIBOR

USD

at

0.50%

Floor

+

3.50%),

8.34%

,

 02/12/27

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

98

96,930

Hub

International

Ltd.,

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.75%

Floor

+

4.00%),

8.73%

,

 11/10/29

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

43

43,015

Hub

International

Ltd.,

Term

Loan

B3,

(3-mo.

LIBOR

USD

at

0.75%

Floor

+

3.25%),

8.06%

,

 04/25/25

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

147

146,862

358,178

Media

—

1.2%

(d)

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

B,

(3-mo.

CME

Term

SOFR

+

3.50%),

8.33%

,

 08/21/26

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

357

331,477

DirecTV

Financing

LLC,

Term

Loan,

(1-mo.

LIBOR

USD

at

0.75%

Floor

+

5.00%),

9.84%

,

 08/02/27

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

173

165,995

497,472

Passenger

Airlines

—

0.0%

(d)

AAdvantage

Loyalty

IP

Ltd.,

Term

Loan,

(3-mo.

LIBOR

USD

at

0.75%

Floor

+

4.75%),

9.56%

,

 04/20/28

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

5

5,476

Mileage

Plus

Holdings

LLC,

Term

Loan,

(3-mo.

LIBOR

USD

at

1.00%

Floor

+

5.25%),

10.21%

,

 06/21/27

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

7

7,173

12,649

Professional

Services

—

0.3%

(d)

Dun

&

Bradstreet

Corp.

(The),

Term

Loan,

(1-

mo.

LIBOR

USD

+

3.25%),

8.10%

,

 02/06/26

89

88,354

Dun

&

Bradstreet

Corp.

(The),

Term

Loan

B2,

(1-mo.

CME

Term

SOFR

+

3.25%),

8.04%

,

 01/18/29

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

43

42,229

130,583

Software

—

1.5%

(d)

Banff

Guarantor,

Inc.,

2nd

Lien

Term

Loan,

(1-

mo.

LIBOR

USD

at

0.50%

Floor

+

5.50%),

10.34%

,

 02/27/26

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

96

92,100

Boxer

Parent

Co.,

Inc.,

Term

Loan,

(1-mo.

LIBOR

USD

+

3.75%),

8.59%

,

 10/02/25

.

157

155,106

Central

Parent,

Inc.,

1st

Lien

Term

Loan,

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

4.25%),

9.15%

,

 07/06/29

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

36

35,751

Security

Par

(000)

Par

(000)

Value

Software

(continued)

Cloud

Software

Group,

Inc.,

1st

Lien

Term

Loan

B,

(3-mo.

CME

Term

SOFR

at

0.50%

Floor

+

4.50%),

9.50%

,

 03/30/29

...........

USD

182

$

165,014

McAfee

Corp.,

Term

Loan

B1,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.75%),

8.52%

,

 03/01/29

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

82

76,824

Sabre

GLBL,

Inc.,

Term

Loan

B1,

(1-mo.

LIBOR

USD

at

0.50%

Floor

+

3.50%),

8.34%

,

 12/17/27

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

6

5,293

Sabre

GLBL,

Inc.,

Term

Loan

B2,

(1-mo.

LIBOR

USD

at

0.50%

Floor

+

3.50%),

8.34%

,

 12/17/27

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

10

8,476

SS&C

Technologies

Holdings,

Inc.,

Term

Loan

B5,

(1-mo.

LIBOR

USD

+

1.75%),

6.59%

,

 04/16/25

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

95

94,667

633,231

Textiles,

Apparel

&

Luxury

Goods

—

0.2%

(d)

Crocs,

Inc.,

Term

Loan,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.50%),

8.41%

,

 02/20/29

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

61

60,285

Hanesbrands,

Inc.,

Term

Loan

B,

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.75%),

8.56%

,

 03/08/30

(i)

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

30

29,850

90,135

Trading

Companies

&

Distributors

—

0.3%

SRS

Distribution,

Inc.,

Term

Loan

(d)

(1-mo.

CME

Term

SOFR

at

0.50%

Floor

+

3.25%),

8.16%, 06/02/28

.........

36

35,107

(1-mo.

LIBOR

USD

at

0.50%

Floor

+

3.50%),

8.34%, 06/02/28

.........

99

95,879

130,986

Total

Floating

Rate

Loan

Interests

—

8.6%

(Cost:

$3,879,938)

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

3,701,907

Preferred

Securities

Capital

Trusts

—

0.1%

Independent

Power

and

Renewable

Electricity

Producers

—

0.1%

Vistra

Corp.,

(5-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

5.74%),

7.00%

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

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

57

50,160

Total

Preferred

Securities

—

0.1%

(Cost:

$57,000)

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

50,160

Total

Long-Term

Investments

—

97.8%

(Cost:

$45,753,199)

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

42,072,600

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

19

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the six

months

ended

March

31,

2023

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Security

Shares

Shares

Value

Short-Term

Securities

Money

Market

Funds

—

1.6%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

4.70%

(k)(l)

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

674,502

$

674,502

Total

Short-Term

Securities

—

1.6%

(Cost:

$674,502)

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

674,502

Total

Options

Purchased

—

0.0%

(Cost:

$21,476)

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

7,986

Total

Investments

Before

Options

Written

—

99.4%

(Cost:

$46,449,177

)

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

42,755,088

Total

Options

Written

—

(0.0)%

(Premium

Received

—

$(9,699))

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

(1,672)

Total

Investments

Net

of

Options

Written

—

99.4%

(Cost:

$46,439,478

)

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

42,753,416

Other

Assets

Less

Liabilities

—

0.6%

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

238,203

Net

Assets

—

100.0%

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

$

42,991,619

(a)

All

or

a

portion

of

the

security

has

been

pledged

and/or

segregated

as

collateral

in

connection

with

outstanding

exchange-traded

options

written.

(b)

Non-income

producing

security.

(c)

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.

(d)

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.

(e)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(f)

Perpetual

security

with

no

stated

maturity

date.

(g)

Convertible

security.

(h)

Zero-coupon

bond.

(i)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(j)

Represents

an

unsettled

loan

commitment

at

period

end.

Certain

details

associated

with

this

purchase

are

not

known

prior

to

the

settlement

date,

including

coupon

rate.

(k)

Annualized

7-day

yield

as

of

period

end.

(l)

Affiliate

of

the

Fund.

Affiliated

Issuer

Value

at

09/30/22

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

03/31/23

Shares

Held

at

03/31/23

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

1,002,589

$

—

$

(328,087)

(a)

$

—

$

—

$

674,502

674,502

$

23,322

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

20

Schedule

of

Investments

(unaudited)

(continued)

March

31

,

2023

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

Derivative

Financial

Instruments

Outstanding

as

of

Period

End

Futures

Contracts

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

(000)

Value/

Unrealized

Appreciation

(Depreciation)

Short

Contracts

S&P

500

E-Mini

Index

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

2

06/16/23

$

414

$

(24,299)

U.S.

Treasury

10

Year

Note

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

1

06/21/23

115

(3,242)

$

(27,541)

Exchange-Traded

Options

Purchased

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

Invesco

QQQ

Trust

1

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

6

04/14/23

USD

292.00

USD

193

$

216

iShares

Russell

2000

ETF

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

9

04/21/23

USD

185.00

USD

161

6,611

SPDR

S&P

500

ETF

Trust

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

19

04/21/23

USD

376.00

USD

778

1,159

$

7,986

Exchange-Traded

Options

Written

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

Invesco

QQQ

Trust

1

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

6

04/14/23

USD

270.00

USD

193

$

(51)

iShares

Russell

2000

ETF

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

9

04/21/23

USD

170.00

USD

161

(1,098)

SPDR

S&P

500

ETF

Trust

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

19

04/21/23

USD

360.00

USD

778

(523)

$

(1,672)

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Options

Written

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Options

Written

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

N/A

N/A

8,027

—

(1,672)

As

of

period

end,

the

fair

values

of

derivative

financial

instruments

located

in

the

Statements

of

Assets

and

Liabilities

were

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Assets

—

Derivative

Financial

Instruments

Options

purchased

Investments

at

value

—

unaffiliated

(a)

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

$

—

$

—

$

7,986

$

—

$

—

$

—

$

7,986

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(b)

......

$

—

$

—

$

24,299

$

—

$

3,242

$

—

$

27,541

Options

written

Options

written

at

value

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

—

—

1,672

—

—

—

1,672

$

—

$

—

$

25,971

$

—

$

3,242

$

—

$

29,213

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

21

Schedule

of

Investments

(unaudited)

(continued)

March

31

,

2023

Fair

Value

Hierarchy

as

of Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund's

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

(a)

Includes

options

purchased

at

value

as

reported

in

the

Schedule

of

Investments.

(b)

Net

cumulative

unrealized

appreciation

(depreciation)

on

futures

contracts,

if

any,

are

reported

in

the

Schedule

of

Investments.

In

the

Statements

of

Assets

and

Liabilities,

only

current

day’s

variation

margin

is

reported

in

receivables

or

payables

and

the

net

cumulative

unrealized

appreciation

(depreciation)

is

included

in

accumulated

earnings

(loss).

For

the

period

ended

March

31,

2023,

the

effect

of

derivative

financial

instruments

in

the

Statements

of

Operations

was

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Net

Realized

Gain

(Loss)

from

Futures

contracts

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

$

—

$

—

$

8,738

$

—

$

13,559

$

—

$

22,297

Options

purchased

(a)

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

—

—

(27,078)

—

—

—

(27,078)

Options

written

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

—

—

12,837

—

—

—

12,837

$

—

$

—

$

(5,503)

$

—

$

13,559

$

—

$

8,056

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

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

$

—

$

—

$

(24,299)

$

—

$

(14,146)

$

—

$

(38,445)

Options

purchased

(b)

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

—

—

(13,490)

—

—

—

(13,490)

Options

written

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

—

—

8,027

—

—

—

8,027

$

—

$

—

$

(29,762)

$

—

$

(14,146)

$

—

$

(43,908)

(a)

Options

purchased

are

included

in

net

realized

gain

(loss)

from

investments

—

unaffiliated.

(b)

Options

purchased

are

included

in

net

change

in

unrealized

appreciation

(depreciation)

on

investments

—

unaffiliated.

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

short

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

$

376,560

Options

Average

value

of

option

contracts

purchased

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

$

14,502

Average

value

of

option

contracts

written

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

$

3,164

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Common

Stocks

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

$

94,743

$

—

$

—

$

94,743

Corporate

Bonds

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

—

38,225,790

—

38,225,790

Floating

Rate

Loan

Interests

Chemicals

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

—

35,972

—

35,972

Commercial

Services

&

Supplies

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

—

110,072

—

110,072

Containers

&

Packaging

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

—

29,711

—

29,711

Diversified

Consumer

Services

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

—

24,891

—

24,891

Diversified

Telecommunication

Services

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

—

501,670

—

501,670

Financial

Services

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

—

—

177,663

177,663

Food

Products

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

—

—

6,486

6,486

Health

Care

Equipment

&

Supplies

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

—

2,795

—

2,795

Health

Care

Providers

&

Services

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

—

17,848

—

17,848

Health

Care

Technology

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

—

677,599

—

677,599

Hotels,

Restaurants

&

Leisure

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

—

203,380

—

203,380

Household

Durables

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

—

60,586

—

60,586

Insurance

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

—

358,178

—

358,178

Media

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

—

497,472

—

497,472

Passenger

Airlines

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

—

12,649

—

12,649

Professional

Services

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

—

130,583

—

130,583

Software

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

—

633,231

—

633,231

Textiles,

Apparel

&

Luxury

Goods

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

—

60,285

29,850

90,135

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

22

Schedule

of

Investments

(unaudited)

(continued)

March

31

,

2023

See

notes

to

financial

statements.

Level

1

Level

2

Level

3

Total

Trading

Companies

&

Distributors

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

$

—

$

130,986

$

—

$

130,986

Capital

Trusts

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

—

50,160

—

50,160

Short-Term

Securities

Money

Market

Funds

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

674,502

—

—

674,502

Options

Purchased

Equity

contracts

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

7,986

—

—

7,986

$

777,231

$

41,763,858

$

213,999

$

42,755,088

Derivative

Financial

Instruments

(a)

Liabilities

Equity

contracts

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

$

(25,971)

$

—

$

—

$

(25,971)

Interest

rate

contracts

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

(3,242)

—

—

(3,242)

$

(29,213)

$

—

$

—

$

(29,213)

(a)

Derivative

financial

instruments

are

futures

contracts

and

options

written.

Futures

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

Fair

Value

Hierarchy

as

of Period

End

(continued)

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

23

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

AGL

Core

CLO

4

Ltd.,

Series

2020-4A,

Class

A1R,

(3-mo.

LIBOR

USD

at

1.07%

Floor

+

1.07%),

5.88%,

04/20/33

(a)(b)

.........

USD

250

$

245,996

AIG

CLO

LLC,

Series

2018-1A,

Class

A1R,

(3-

mo.

LIBOR

USD

at

1.12%

Floor

+

1.12%),

5.93%,

04/20/32

(a)(b)

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

250

246,269

Anchorage

Capital

CLO

3-R

Ltd.,

Series

2014-

3RA,

Class

A,

(3-mo.

LIBOR

USD

at

1.05%

Floor

+

1.05%),

5.85%,

01/28/31

(a)(b)

....

245

241,506

Arbor

Realty

Commercial

Real

Estate

Notes

Ltd.,

Series

2022-FL2,

Class

A,

(1-mo.

CME

Term

SOFR

at

1.85%

Floor

+

1.85%),

6.68%,

05/15/37

(a)(b)

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

100

98,250

Ares

LVI

CLO

Ltd.,

Series

2020-56A,

Class

AR,

(3-mo.

LIBOR

USD

at

1.16%

Floor

+

1.16%),

5.98%,

10/25/34

(a)(b)

.........

250

243,605

BA

Credit

Card

Trust

Series

2022-A1,

Class

A1,

3.53%,

11/15/27

59

57,647

Series

2022-A2,

Class

A2,

5.00%,

04/15/28

218

220,620

Barings

CLO

Ltd.,

Series

2019-3A,

Class

A1R,

(3-mo.

LIBOR

USD

at

1.07%

Floor

+

1.07%),

5.88%,

04/20/31

(a)(b)

.........

250

246,236

Beechwood

Park

CLO

Ltd.,

Series

2019-1A,

Class

A1R,

(3-mo.

CME

Term

SOFR

at

1.30%

Floor

+

1.30%),

5.96%,

01/17/35

(a)(b)

250

241,669

BlueMountain

CLO

XXII

Ltd.,

Series

2018-22A,

Class

A1,

(3-mo.

LIBOR

USD

at

1.08%

Floor

+

1.08%),

5.87%,

07/15/31

(a)(b)

....

250

246,319

BMW

Vehicle

Owner

Trust,

Series

2022-A,

Class

A3,

3.21%,

08/25/26

..........

237

231,583

Capital

One

Multi-Asset

Execution

Trust

Series

2022-A2,

Class

A,

3.49%,

05/15/27

34

33,201

Series

2022-A3,

Class

A,

4.95%,

10/15/27

64

64,661

CIFC

Funding

Ltd.,

Series

2021-5A,

Class

A,

(3-mo.

LIBOR

USD

at

1.14%

Floor

+

1.14%),

5.93%,

07/15/34

(a)(b)

.........

250

244,213

College

Avenue

Student

Loans

LLC,

Series

2021-C,

Class

A1,

(1-mo.

LIBOR

USD

+

0.90%),

5.75%,

07/26/55

(a)(b)

.........

83

79,418

Discover

Card

Execution

Note

Trust,

Series

2022-A3,

Class

A3,

3.56%,

07/15/27

....

30

29,312

Enterprise

Fleet

Financing

LLC

(b)

Series

2022-4,

Class

A2,

5.76%,

10/22/29

220

221,510

Series

2023-1,

Class

A2,

5.51%,

01/22/29

90

90,183

Ford

Credit

Auto

Owner

Trust

Series

2022-B,

Class

A4,

3.93%,

08/15/27

44

43,298

Series

2023-1,

Class

A,

4.85%,

08/15/35

(b)

145

145,341

Series

2023-A,

Class

A3,

4.65%,

02/15/28

50

49,995

FS

Rialto

Issuer

LLC,

Series

2022-FL5,

Class

A,

(1-mo.

CME

Term

SOFR

at

2.30%

Floor

+

2.30%),

6.99%,

06/19/37

(a)(b)

.........

100

100,190

GM

Financial

Consumer

Automobile

Receivables

Trust,

Series

2022-3,

Class

A3,

3.64%,

04/16/27

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

54

52,920

GoodLeap

Sustainable

Home

Solutions

Trust

(b)

Series

2021-3CS,

Class

A,

2.10%,

05/20/48

160

126,252

Series

2021-5CS,

Class

A,

2.31%,

10/20/48

82

64,804

Series

2022-1GS,

Class

A,

2.70%,

01/20/49

45

36,588

Series

2022-2CS,

Class

A,

4.00%,

04/20/49

23

21,055

Series

2022-3CS,

Class

A,

4.95%,

07/20/49

56

53,359

Honda

Auto

Receivables

Owner

Trust,

Series

2023-1,

Class

A3,

5.04%,

04/21/27

.....

110

110,814

Hyundai

Auto

Receivables

Trust

Series

2022-B,

Class

A3,

3.72%,

11/16/26

55

54,047

Series

2022-C,

Class

A3,

5.39%,

06/15/27

53

53,637

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Loanpal

Solar

Loan

Ltd.,

Series

2021-1GS,

Class

A,

2.29%,

01/20/48

(b)

..........

USD

135

$

106,208

Madison

Park

Funding

XXXVII

Ltd.,

Series

2019-37A,

Class

AR,

(3-mo.

LIBOR

USD

at

1.07%

Floor

+

1.07%),

5.86%,

07/15/33

(a)(b)

250

245,927

MF1

Multifamily

Housing

Mortgage

Loan

Trust,

Series

2022-FL8,

Class

A,

(SOFR

30

Day

Average

at

1.35%

Floor

+

1.35%),

5.91%,

02/19/37

(a)(b)

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

100

97,202

Mosaic

Solar

Loan

Trust

(b)

Series

2021-1A,

Class

A,

1.51%,

12/20/46

95

79,235

Series

2022-1A,

Class

A,

2.64%,

01/20/53

88

76,948

Mosaic

Solar

Loans

LLC,

Series

2017-2A,

Class

C,

2.00%,

06/22/43

(b)

..........

17

16,802

Navient

Private

Education

Refi

Loan

Trust

(b)

Series

2020-CA,

Class

A2B,

(1-mo.

LIBOR

USD

+

1.60%),

6.28%,

11/15/68

(a)

...

206

204,033

Series

2021-CA,

Class

A,

1.06%,

10/15/69

124

108,039

Series

2021-GA,

Class

A,

1.58%,

04/15/70

99

86,628

Series

2022-A,

Class

A,

2.23%,

07/15/70

.

129

115,727

Series

2022-BA,

Class

A,

4.16%,

10/15/70

112

107,934

Nelnet

Student

Loan

Trust,

Series

2021-DA,

Class

AFX,

1.63%,

04/20/62

(b)

........

105

95,469

Neuberger

Berman

Loan

Advisers

CLO

26

Ltd.,

Series

2017-26A,

Class

AR,

(3-mo.

LIBOR

USD

at

0.92%

Floor

+

0.92%),

5.71%,

10/18/30

(a)(b)

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

250

247,526

Octagon

Investment

Partners

XV

Ltd.,

Series

2013-1A,

Class

A1RR,

(3-mo.

LIBOR

USD

at

0.97%

Floor

+

0.97%),

5.77%,

07/19/30

(a)

(b)

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

242

239,244

OneMain

Financial

Issuance

Trust,

Series

2022-S1,

Class

A,

4.13%,

05/14/35

(b)

...

120

115,909

Oportun

Issuance

Trust,

Series

2021-C,

Class

A,

2.18%,

10/08/31

(b)

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

100

90,039

Palmer

Square

CLO

Ltd.,

Series

2013-2A,

Class

A1A3,

(3-mo.

LIBOR

USD

at

1.00%

Floor

+

1.00%),

5.80%,

10/17/31

(a)(b)

....

250

246,878

PFS

Financing

Corp.,

Series

2023-A,

Class

A,

5.80%,

03/15/28

(b)

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

125

127,058

Prodigy

Finance

DAC,

Series

2021-1A,

Class

A,

(1-mo.

LIBOR

USD

+

1.25%),

6.10%,

07/25/51

(a)(b)

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

95

92,427

Romark

CLO

II

Ltd.,

Series

2018-2A,

Class

A1,

(3-mo.

LIBOR

USD

at

1.18%

Floor

+

1.18%),

5.99%,

07/25/31

(a)(b)

.........

250

246,580

SMB

Private

Education

Loan

Trust

(a)(b)

Series

2022-B,

Class

A1B,

(SOFR

30

Day

Average

+

1.45%),

6.01%,

02/16/55

..

171

168,461

Series

2022-C,

Class

A1B,

(SOFR

30

Day

Average

at

1.85%

Floor

+

1.85%),

6.41%,

05/16/50

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

86

85,432

SoFi

Professional

Loan

Program

LLC

(b)

Series

2019-A,

Class

A2FX,

3.69%,

06/15/48

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

152

146,192

Series

2019-B,

Class

A2FX,

3.09%,

08/17/48

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

37

34,962

SoFi

Professional

Loan

Program

Trust

(b)

Series

2020-A,

Class

A2FX,

2.54%,

05/15/46

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

64

60,055

Series

2021-B,

Class

AFX,

1.14%,

02/15/47

118

98,278

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

24

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Sunnova

Sol

IV

Issuer

LLC,

Series

2022-A,

Class

A,

2.79%,

02/22/49

(b)

..........

USD

93

$

80,413

Total

Asset-Backed

Securities

—

16.0%

(Cost:

$7,682,729)

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

7,414,104

Corporate

Bonds

Aerospace

&

Defense

—

0.3%

(b)

Bombardier,

Inc.

7.13%,

06/15/26

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

18

18,065

7.88%,

04/15/27

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

15

15,185

7.50%,

02/01/29

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

6

6,129

TransDigm,

Inc.

8.00%,

12/15/25

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

9

9,169

6.25%,

03/15/26

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

65

65,059

6.75%,

08/15/28

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

30

30,300

143,907

Automobile

Components

—

0.2%

Clarios

Global

LP,

6.25%,

05/15/26

(b)

.....

65

64,837

Goodyear

Tire

&

Rubber

Co.

(The),

9.50%,

05/31/25

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

8

8,221

73,058

Automobiles

—

0.3%

Nissan

Motor

Acceptance

Co.

LLC,

2.00%,

03/09/26

(b)

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

165

146,229

Banks

—

6.9%

Banco

Bilbao

Vizcaya

Argentaria

SA,

0.38%,

10/02/24

(c)

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

EUR

100

103,101

Bank

of

America

Corp.

(a)

(1-Day

SOFR

+

1.46%),

1.49%,

05/19/24

USD

100

99,445

(1-Day

SOFR

+

0.91%),

0.98%,

09/25/25

200

186,618

(3-mo.

LIBOR

USD

+

0.87%),

2.46%,

10/22/25

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

200

190,390

(1-Day

SOFR

+

0.65%),

1.53%,

12/06/25

240

224,383

Bank

of

Montreal,

5.20%,

12/12/24

......

115

115,144

BNP

Paribas

SA,

(3-mo.

EURIBOR

+

0.80%),

0.38%,

10/14/27

(a)(c)

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

EUR

100

94,854

CaixaBank

SA,

(3-mo.

EURIBOR

+

0.85%),

0.38%,

11/18/26

(a)(c)

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

100

97,608

Citigroup,

Inc.

(a)

(1-Day

SOFR

+

0.53%),

1.28%,

11/03/25

USD

35

32,693

(1-Day

SOFR

+

1.53%),

3.29%,

03/17/26

60

57,491

(1-Day

SOFR

+

1.55%),

5.61%,

09/29/26

110

110,820

(1-Day

SOFR

+

0.77%),

1.46%,

06/09/27

60

53,272

HSBC

Holdings

plc

(a)

(1-Day

SOFR

+

1.40%),

2.63%,

11/07/25

200

189,232

(1-Day

SOFR

+

1.93%),

2.10%,

06/04/26

200

183,656

HSBC

USA,

Inc.,

5.63%,

03/17/25

......

200

200,376

Intesa

Sanpaolo

SpA,

1.50%,

04/10/24

(c)

...

EUR

100

105,902

JPMorgan

Chase

&

Co.

(a)

(3-mo.

LIBOR

USD

+

0.89%),

3.80%,

07/23/24

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

USD

49

48,746

(1-Day

SOFR

+

0.49%),

0.77%,

08/09/25

200

187,780

(1-Day

SOFR

+

1.85%),

2.08%,

04/22/26

102

95,445

(3-mo.

LIBOR

USD

+

1.34%),

3.78%,

02/01/28

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

215

205,573

Lloyds

Banking

Group

plc,

(1-Year

EUR

Swap

Annual

+

0.85%),

0.50%,

11/12/25

(a)(c)

...

EUR

100

102,652

NatWest

Group

plc,

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

2.15%),

2.36%,

05/22/24

(a)

..........

USD

200

198,952

Royal

Bank

of

Canada,

6.00%,

11/01/27

...

56

58,415

Societe

Generale

SA,

(3-mo.

EURIBOR

+

1.28%),

0.88%,

09/22/28

(a)(c)

.........

EUR

100

92,974

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

Toronto-Dominion

Bank

(The),

1.25%,

12/13/24

USD

150

$

140,815

3,176,337

Beverages

—

0.3%

Anheuser-Busch

InBev

Worldwide,

Inc.,

4.00%,

04/13/28

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

150

148,293

Biotechnology

—

1.7%

AbbVie,

Inc.,

1.25%,

06/01/24

.........

EUR

100

105,616

Amgen,

Inc.,

5.15%,

03/02/28

.........

USD

230

234,835

Gilead

Sciences,

Inc.

3.70%,

04/01/24

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

385

380,470

2.95%,

03/01/27

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

50

47,574

768,495

Broadline

Retail

—

0.1%

(b)

Go

Daddy

Operating

Co.

LLC,

3.50%,

03/01/29

8

6,917

Match

Group

Holdings

II

LLC,

4.63%,

06/01/28

19

17,646

24,563

Building

Products

—

0.1%

Advanced

Drainage

Systems,

Inc.,

5.00%,

09/30/27

(b)

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

8

7,603

Carrier

Global

Corp.,

2.24%,

02/15/25

....

36

34,349

Standard

Industries,

Inc.,

4.75%,

01/15/28

(b)

20

18,683

60,635

Capital

Markets

—

4.6%

Charles

Schwab

Corp.

(The)

0.90%,

03/11/26

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

150

131,509

3.30%,

04/01/27

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

100

92,388

Credit

Suisse

AG,

Series

FXD,

0.52%,

08/09/23

250

242,812

Deutsche

Bank

AG

Series

E,

0.96%,

11/08/23

..........

375

358,033

(1-Day

SOFR

+

2.58%),

3.96%,

11/26/25

(a)

150

141,914

Goldman

Sachs

Group,

Inc.

(The)

(a)

(1-Day

SOFR

+

1.51%),

4.39%,

06/15/27

155

151,413

(1-Day

SOFR

+

1.11%),

2.64%,

02/24/28

95

86,653

Morgan

Stanley

(a)

(1-Day

SOFR

+

0.47%),

5.37%,

11/10/23

200

199,525

(1-Day

SOFR

+

0.53%),

0.79%,

05/30/25

45

42,596

(1-Day

SOFR

+

0.56%),

1.16%,

10/21/25

275

256,810

(3-mo.

EURIBOR

+

0.83%),

1.34%,

10/23/26

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

EUR

100

101,522

(1-Day

SOFR

+

1.73%),

5.12%,

02/01/29

USD

50

50,397

MSCI,

Inc.,

3.63%,

09/01/30

(b)

.........

5

4,347

State

Street

Corp.,

(1-Day

SOFR

+

1.35%),

5.75%,

11/04/26

(a)

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

70

71,336

UBS

Group

AG,

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

0.85%),

1.49%,

08/10/27

(a)(b)

.........

200

172,211

2,103,466

Chemicals

—

0.1%

Element

Solutions,

Inc.,

3.88%,

09/01/28

(b)

.

45

39,494

HB

Fuller

Co.,

4.00%,

02/15/27

........

13

11,882

WR

Grace

Holdings

LLC,

5.63%,

08/15/29

(b)

13

11,018

62,394

Commercial

Services

&

Supplies

—

0.5%

ADT

Security

Corp.

(The),

4.13%,

08/01/29

(b)

8

7,134

Allied

Universal

Holdco

LLC,

6.63%,

07/15/26

(b)

21

20,181

APX

Group,

Inc.,

6.75%,

02/15/27

(b)

......

8

7,960

Aramark

Services,

Inc.

(b)

6.38%,

05/01/25

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

9

9,066

5.00%,

02/01/28

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

17

16,090

Garda

World

Security

Corp.

(b)

4.63%,

02/15/27

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

5

4,488

7.75%,

02/15/28

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

4

3,943

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

25

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

GFL

Environmental,

Inc.

(b)

5.13%,

12/15/26

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

USD

14

$

13,689

4.00%,

08/01/28

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

7

6,360

Legends

Hospitality

Holding

Co.

LLC,

5.00%,

02/01/26

(b)

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

6

5,369

Neptune

Bidco

US,

Inc.,

9.29%,

04/15/29

(b)

.

2

1,854

Prime

Security

Services

Borrower

LLC,

6.25%,

01/15/28

(b)

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

12

11,220

Republic

Services,

Inc.,

3.38%,

11/15/27

...

150

143,179

250,533

Communications

Equipment

—

0.1%

(b)

CommScope

Technologies

LLC,

6.00%,

06/15/25

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

8

7,534

CommScope,

Inc.,

6.00%,

03/01/26

......

21

20,267

Viasat,

Inc.,

5.63%,

04/15/27

..........

15

14,085

Viavi

Solutions,

Inc.,

3.75%,

10/01/29

....

17

14,538

56,424

Consumer

Finance

—

1.5%

American

Express

Co.,

2.55%,

03/04/27

...

190

175,389

General

Motors

Financial

Co.,

Inc.

3.50%,

11/07/24

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

100

97,419

6.05%,

10/10/25

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

100

101,633

John

Deere

Capital

Corp.,

0.70%,

01/15/26

.

100

90,753

OneMain

Finance

Corp.

6.88%,

03/15/25

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

2

1,938

7.13%,

03/15/26

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

12

11,535

SLM

Corp.,

3.13%,

11/02/26

..........

7

5,950

Synchrony

Financial,

4.88%,

06/13/25

....

125

115,711

Toyota

Motor

Credit

Corp.,

5.40%,

11/10/25

.

100

102,576

702,904

Consumer

Staples

Distribution

&

Retail

—

0.1%

(b)

Albertsons

Cos.,

Inc.

3.25%,

03/15/26

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

6

5,646

5.88%,

02/15/28

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

34

33,791

6.50%,

02/15/28

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

3

3,008

United

Natural

Foods,

Inc.,

6.75%,

10/15/28

6

5,576

US

Foods,

Inc.

6.25%,

04/15/25

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

13

13,117

4.75%,

02/15/29

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

2

1,848

62,986

Containers

&

Packaging

—

0.4%

Ball

Corp.,

4.88%,

03/15/26

..........

72

71,460

Clydesdale

Acquisition

Holdings,

Inc.,

6.63%,

04/15/29

(b)

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

13

12,513

Crown

Americas

LLC,

4.25%,

09/30/26

...

30

28,760

Graphic

Packaging

International

LLC,

3.50%,

03/15/28

(b)

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

13

11,898

Mauser

Packaging

Solutions

Holding

Co.,

7.88%,

08/15/26

(b)

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

41

41,000

Sealed

Air

Corp.

(b)

4.00%,

12/01/27

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

20

18,664

6.13%,

02/01/28

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

3

3,033

187,328

Distributors

—

0.0%

Ritchie

Bros

Holdings,

Inc.,

6.75%,

03/15/28

(b)

2

2,060

Diversified

REITs

—

0.0%

(b)

HAT

Holdings

I

LLC,

3.38%,

06/15/26

....

13

11,277

Uniti

Group

LP,

10.50%,

02/15/28

.......

7

6,790

18,067

Security

Par

(000)

Par

(000)

Value

Diversified

Telecommunication

Services

—

0.6%

AT&T,

Inc.,

1.80%,

09/05/26

..........

EUR

100

$

102,089

CCO

Holdings

LLC

(b)

5.13%,

05/01/27

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

USD

15

14,175

5.00%,

02/01/28

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

19

17,527

6.38%,

09/01/29

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

12

11,460

Frontier

Communications

Holdings

LLC

(b)

5.88%,

10/15/27

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

17

15,455

5.00%,

05/01/28

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

5

4,339

Level

3

Financing,

Inc.

(b)

3.40%,

03/01/27

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

8

6,328

4.63%,

09/15/27

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

4

2,405

4.25%,

07/01/28

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

21

11,848

3.88%,

11/15/29

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

7

5,066

Lumen

Technologies,

Inc.,

4.00%,

02/15/27

(b)

8

5,280

Verizon

Communications,

Inc.,

2.10%,

03/22/28

45

40,087

Zayo

Group

Holdings,

Inc.,

4.00%,

03/01/27

(b)

57

43,320

279,379

Electric

Utilities

—

1.6%

EDP

-

Energias

de

Portugal

SA,

1.63%,

04/15/27

(c)

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

EUR

100

100,175

Eversource

Energy,

5.45%,

03/01/28

.....

USD

55

56,992

Exelon

Corp.,

5.15%,

03/15/28

.........

50

50,871

NextEra

Energy

Capital

Holdings,

Inc.

4.20%,

06/20/24

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

230

227,337

6.05%,

03/01/25

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

75

76,297

4.90%,

02/28/28

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

50

50,331

NextEra

Energy

Operating

Partners

LP,

4.25%,

07/15/24

(b)

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

13

12,834

NRG

Energy,

Inc.,

5.75%,

01/15/28

......

29

28,440

Pattern

Energy

Operations

LP,

4.50%,

08/15/28

(b)

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

66

60,380

Texas

Electric

Market

Stabilization

Funding

N

LLC,

Series

A-1,

4.27%,

08/01/34

(b)

....

98

94,459

758,116

Electrical

Equipment

—

0.1%

(b)

Sensata

Technologies

BV

5.00%,

10/01/25

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

15

14,890

4.00%,

04/15/29

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

3

2,711

Vertiv

Group

Corp.,

4.13%,

11/15/28

.....

18

15,882

33,483

Entertainment

—

0.1%

(b)

Lions

Gate

Capital

Holdings

LLC,

5.50%,

04/15/29

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

3

1,973

Live

Nation

Entertainment,

Inc.

6.50%,

05/15/27

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

2

2,021

4.75%,

10/15/27

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

13

12,025

3.75%,

01/15/28

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

23

20,585

36,604

Financial

Services

—

0.6%

Block,

Inc.,

2.75%,

06/01/26

..........

23

20,971

Enact

Holdings,

Inc.,

6.50%,

08/15/25

(b)

...

13

12,675

Fidelity

National

Information

Services,

Inc.,

1.15%,

03/01/26

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

100

88,973

MGIC

Investment

Corp.,

5.25%,

08/15/28

..

10

9,505

Nationstar

Mortgage

Holdings,

Inc.,

6.00%,

01/15/27

(b)

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

3

2,723

PayPal

Holdings,

Inc.,

2.65%,

10/01/26

...

110

103,723

Sabre

GLBL,

Inc.

(b)

9.25%,

04/15/25

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

2

1,884

7.38%,

09/01/25

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

5

4,467

11.25%,

12/15/27

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

2

1,864

Shift4

Payments

LLC,

4.63%,

11/01/26

(b)

...

15

14,100

260,885

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

26

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Food

Products

—

0.6%

Chobani

LLC,

4.63%,

11/15/28

(b)

........

USD

14

$

12,758

Darling

Ingredients,

Inc.,

5.25%,

04/15/27

(b)

.

15

14,625

General

Mills,

Inc.,

5.24%,

11/18/25

......

95

95,285

Kraft

Heinz

Foods

Co.,

3.00%,

06/01/26

...

100

95,523

Lamb

Weston

Holdings,

Inc.,

4.88%,

05/15/28

(b)

37

35,888

254,079

Ground

Transportation

—

0.4%

Ryder

System,

Inc.,

3.75%,

06/09/23

.....

110

109,596

Uber

Technologies,

Inc.

(b)

8.00%,

11/01/26

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

6

6,151

6.25%,

01/15/28

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

28

27,930

4.50%,

08/15/29

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

12

10,935

Williams

Scotsman

International,

Inc.,

4.63%,

08/15/28

(b)

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

14

12,736

167,348

Health

Care

Equipment

&

Supplies

—

0.1%

Avantor

Funding,

Inc.,

4.63%,

07/15/28

(b)

..

26

24,635

Hologic,

Inc.,

4.63%,

02/01/28

(b)

........

9

8,736

Medline

Borrower

LP,

3.88%,

04/01/29

(b)

...

7

6,072

Teleflex,

Inc.

4.63%,

11/15/27

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

2

1,954

4.25%,

06/01/28

(b)

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

12

11,411

52,808

Health

Care

Providers

&

Services

—

2.3%

Centene

Corp.,

2.45%,

07/15/28

........

31

26,970

Community

Health

Systems,

Inc.,

6.00%,

01/15/29

(b)

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

17

14,380

CVS

Health

Corp.,

6.25%,

06/01/27

......

50

52,836

Elevance

Health,

Inc.,

5.35%,

10/15/25

...

225

226,973

Encompass

Health

Corp.,

4.50%,

02/01/28

.

34

31,691

Fresenius

SE

&

Co.

KGaA,

0.75%,

01/15/28

(c)

EUR

100

93,556

HCA,

Inc.

5.25%,

04/15/25

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

USD

50

49,968

5.88%,

02/15/26

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

155

157,295

HealthEquity,

Inc.,

4.50%,

10/01/29

(b)

.....

17

15,104

Legacy

LifePoint

Health

LLC

(b)

6.75%,

04/15/25

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

2

1,898

4.38%,

02/15/27

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

2

1,636

ModivCare,

Inc.,

5.88%,

11/15/25

(b)

......

2

1,917

Molina

Healthcare,

Inc.,

4.38%,

06/15/28

(b)

.

22

20,466

Tenet

Healthcare

Corp.

6.25%,

02/01/27

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

2

1,967

5.13%,

11/01/27

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

54

51,843

UnitedHealth

Group,

Inc.

5.15%,

10/15/25

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

195

198,678

2.95%,

10/15/27

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

100

94,428

1,041,606

Health

Care

REITs

—

0.5%

Healthpeak

OP

LLC,

1.35%,

02/01/27

....

100

87,870

Welltower

OP

LLC

4.00%,

06/01/25

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

50

48,548

4.25%,

04/01/26

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

100

97,810

234,228

Hotels,

Restaurants

&

Leisure

—

0.3%

(b)

1011778

BC

ULC

3.88%,

01/15/28

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

8

7,440

4.38%,

01/15/28

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

35

32,310

Cedar

Fair

LP,

5.50%,

05/01/25

........

9

8,995

Hilton

Domestic

Operating

Co.,

Inc.

5.75%,

05/01/28

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

58

58,000

3.75%,

05/01/29

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

2

1,790

Six

Flags

Theme

Parks,

Inc.,

7.00%,

07/01/25

6

6,062

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

Vail

Resorts,

Inc.,

6.25%,

05/15/25

......

USD

9

$

9,021

123,618

Household

Durables

—

0.0%

Tempur

Sealy

International,

Inc.,

4.00%,

04/15/29

(b)

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

10

8,798

Independent

Power

and

Renewable

Electricity

Producers

—

0.2%

Clearway

Energy

Operating

LLC,

4.75%,

03/15/28

(b)

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

90

85,950

TransAlta

Corp.,

7.75%,

11/15/29

.......

14

14,712

100,662

Insurance

—

0.3%

(b)

Alliant

Holdings

Intermediate

LLC

4.25%,

10/15/27

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

77

68,968

6.75%,

04/15/28

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

10

9,888

AmWINS

Group,

Inc.,

4.88%,

06/30/29

....

3

2,655

NFP

Corp.,

4.88%,

08/15/28

..........

58

52,316

133,827

IT

Services

—

0.6%

Booz

Allen

Hamilton,

Inc.,

3.88%,

09/01/28

(b)

9

8,213

Gartner,

Inc.,

4.50%,

07/01/28

(b)

........

26

24,679

International

Business

Machines

Corp.

0.95%,

05/23/25

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

EUR

100

102,994

4.50%,

02/06/26

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

USD

100

99,816

Northwest

Fiber

LLC,

4.75%,

04/30/27

(b)

...

20

17,087

Twilio,

Inc.,

3.63%,

03/15/29

..........

23

19,837

272,626

Life

Sciences

Tools

&

Services

—

0.3%

Charles

River

Laboratories

International,

Inc.,

4.25%,

05/01/28

(b)

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

32

29,948

Danaher

Corp.,

2.10%,

09/30/26

.......

EUR

100

104,185

134,133

Machinery

—

0.0%

(b)

Mueller

Water

Products,

Inc.,

4.00%,

06/15/29

USD

6

5,359

Wabash

National

Corp.,

4.50%,

10/15/28

..

10

8,670

14,029

Media

—

0.4%

Clear

Channel

Outdoor

Holdings,

Inc.,

5.13%,

08/15/27

(b)

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

55

49,363

Comcast

Corp.,

4.15%,

10/15/28

.......

45

44,515

DirecTV

Financing

LLC,

5.88%,

08/15/27

(b)

.

12

10,868

GCI

LLC,

4.75%,

10/15/28

(b)

..........

2

1,725

Outfront

Media

Capital

LLC,

5.00%,

08/15/27

(b)

6

5,405

Radiate

Holdco

LLC,

4.50%,

09/15/26

(b)

...

4

3,130

Sirius

XM

Radio,

Inc.

(b)

5.00%,

08/01/27

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

2

1,873

4.00%,

07/15/28

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

49

42,088

TEGNA,

Inc.,

4.75%,

03/15/26

(b)

........

2

1,897

160,864

Metals

&

Mining

—

0.4%

Big

River

Steel

LLC,

6.63%,

01/31/29

(b)

...

61

60,534

Novelis

Corp.

(b)

3.25%,

11/15/26

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

37

33,813

3.88%,

08/15/31

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

21

17,687

Steel

Dynamics,

Inc.,

2.40%,

06/15/25

....

50

47,162

159,196

Mortgage

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

Starwood

Property

Trust,

Inc.

(b)

5.50%,

11/01/23

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

2

2,004

4.38%,

01/15/27

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

6

4,959

6,963

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

27

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Multi-Utilities

—

0.6%

E.ON

SE,

0.88%,

01/08/25

(c)

..........

EUR

30

$

31,083

Engie

SA,

1.75%,

03/27/28

(c)

..........

100

99,783

Sempra

Energy,

3.30%,

04/01/25

.......

USD

50

48,391

Veolia

Environnement

SA,

0.00%,

01/14/27

(c)

EUR

100

94,775

274,032

Oil,

Gas

&

Consumable

Fuels

—

0.2%

Eni

SpA,

1.00%,

03/14/25

(c)

...........

100

103,520

Passenger

Airlines

—

0.2%

(b)

American

Airlines,

Inc.

11.75%,

07/15/25

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

USD

16

17,505

5.50%,

04/20/26

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

11

11,056

7.25%,

02/15/28

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

2

1,945

5.75%,

04/20/29

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

6

5,755

Mileage

Plus

Holdings

LLC,

6.50%,

06/20/27

9

8,473

United

Airlines,

Inc.

4.38%,

04/15/26

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

42

40,182

4.63%,

04/15/29

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

3

2,713

87,629

Pharmaceuticals

—

0.1%

Catalent

Pharma

Solutions,

Inc.,

5.00%,

07/15/27

(b)

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

33

32,226

Professional

Services

—

0.0%

(b)

AMN

Healthcare,

Inc.,

4.63%,

10/01/27

...

11

10,196

CoreLogic,

Inc.,

4.50%,

05/01/28

.......

9

6,829

17,025

Real

Estate

Management

&

Development

—

0.1%

(b)

Cushman

&

Wakefield

US

Borrower

LLC,

6.75%,

05/15/28

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

16

14,324

Howard

Hughes

Corp.

(The),

5.38%,

08/01/28

19

17,302

Realogy

Group

LLC,

5.75%,

01/15/29

....

11

8,233

39,859

Retail

REITs

—

0.0%

Brookfield

Property

REIT,

Inc.,

4.50%,

04/01/27

(b)

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

6

4,815

Semiconductors

&

Semiconductor

Equipment

—

2.2%

Broadcom

Corp.

3.13%,

01/15/25

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

5

4,817

3.88%,

01/15/27

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

120

116,004

Entegris

Escrow

Corp.,

4.75%,

04/15/29

(b)

..

17

16,072

Entegris,

Inc.,

4.38%,

04/15/28

(b)

.......

13

11,745

Intel

Corp.,

4.88%,

02/10/28

..........

70

71,125

Lam

Research

Corp.

3.80%,

03/15/25

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

20

19,650

3.75%,

03/15/26

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

143

140,604

NXP

BV

4.88%,

03/01/24

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

225

223,003

2.70%,

05/01/25

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

330

312,634

Synaptics,

Inc.,

4.00%,

06/15/29

(b)

.......

7

6,028

Texas

Instruments,

Inc.,

4.60%,

02/15/28

..

100

102,072

1,023,754

Software

—

1.9%

Alteryx,

Inc.,

8.75%,

03/15/28

(b)

........

4

4,026

Black

Knight

InfoServ

LLC,

3.63%,

09/01/28

(b)

15

13,631

Central

Parent,

Inc.,

7.25%,

06/15/29

(b)

....

6

5,897

Clarivate

Science

Holdings

Corp.,

3.88%,

07/01/28

(b)

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

41

36,591

Cloud

Software

Group

Holdings,

Inc.,

6.50%,

03/31/29

(b)

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

40

35,384

Consensus

Cloud

Solutions,

Inc.,

6.00%,

10/15/26

(b)

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

13

11,294

Elastic

NV,

4.13%,

07/15/29

(b)

.........

18

15,368

Fair

Isaac

Corp.,

4.00%,

06/15/28

(b)

......

12

11,130

Security

Par

(000)

Par

(000)

Value

Software

(continued)

Gen

Digital,

Inc.,

6.75%,

09/30/27

(b)

......

USD

10

$

10,052

MicroStrategy,

Inc.,

6.13%,

06/15/28

(b)

....

7

6,212

Open

Text

Corp.,

6.90%,

12/01/27

(b)

.....

13

13,411

Oracle

Corp.

1.65%,

03/25/26

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

110

101,055

3.25%,

11/15/27

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

200

187,996

PTC,

Inc.,

4.00%,

02/15/28

(b)

..........

14

13,083

SS&C

Technologies,

Inc.,

5.50%,

09/30/27

(b)

23

22,317

Veritas

US,

Inc.,

7.50%,

09/01/25

(b)

......

2

1,506

VMware,

Inc.

0.60%,

08/15/23

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

120

117,741

1.40%,

08/15/26

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

155

137,097

3.90%,

08/21/27

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

55

52,651

Workday,

Inc.,

3.50%,

04/01/27

........

80

76,541

ZoomInfo

Technologies

LLC,

3.88%,

02/01/29

(b)

18

15,583

888,566

Specialized

REITs

—

2.8%

American

Tower

Corp.

1.60%,

04/15/26

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

330

298,435

0.45%,

01/15/27

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

EUR

100

94,627

3.65%,

03/15/27

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

USD

60

56,990

Crown

Castle,

Inc.

3.15%,

07/15/23

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

350

347,829

3.20%,

09/01/24

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

50

48,569

1.05%,

07/15/26

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

170

149,799

Equinix,

Inc.

1.00%,

09/15/25

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

200

181,131

0.25%,

03/15/27

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

EUR

100

93,459

Iron

Mountain,

Inc.,

5.00%,

07/15/28

(b)

....

USD

20

18,610

SBA

Communications

Corp.

3.88%,

02/15/27

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

20

18,880

3.13%,

02/01/29

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

2

1,740

1,310,069

Specialty

Retail

—

0.6%

GYP

Holdings

III

Corp.,

4.63%,

05/01/29

(b)

..

3

2,565

Home

Depot,

Inc.

(The),

2.88%,

04/15/27

..

55

52,431

Lowe's

Cos.,

Inc.,

3.10%,

05/03/27

......

180

171,047

SRS

Distribution,

Inc.,

4.63%,

07/01/28

(b)

..

42

37,300

Staples,

Inc.,

7.50%,

04/15/26

(b)

........

5

4,381

267,724

Textiles,

Apparel

&

Luxury

Goods

—

0.1%

(b)

Crocs,

Inc.,

4.25%,

03/15/29

..........

17

14,911

William

Carter

Co.

(The),

5.63%,

03/15/27

..

14

13,608

28,519

Trading

Companies

&

Distributors

—

0.2%

Aviation

Capital

Group

LLC,

1.95%,

09/20/26

(b)

50

43,276

Herc

Holdings,

Inc.,

5.50%,

07/15/27

(b)

....

14

13,510

Imola

Merger

Corp.,

4.75%,

05/15/29

(b)

....

8

7,157

United

Rentals

North

America,

Inc.,

4.88%,

01/15/28

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

21

20,081

WESCO

Distribution,

Inc.,

7.25%,

06/15/28

(b)

24

24,643

108,667

Wireless

Telecommunication

Services

—

0.4%

Rogers

Communications,

Inc.,

3.20%,

03/15/27

(b)

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

145

136,427

Sprint

LLC,

7.63%,

03/01/26

..........

38

40,184

T-Mobile

USA,

Inc.,

2.25%,

02/15/26

.....

23

21,392

198,003

Total

Corporate

Bonds

—

36.0%

(Cost:

$17,403,885)

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

16,605,339

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

28

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Foreign

Agency

Obligations

France

—

0.2%

Electricite

de

France

SA,

1.00%

,

10/13/26

(c)

.

EUR

100

$

100,015

Germany

—

0.4%

Kreditanstalt

fuer

Wiederaufbau,

0.00%

,

09/15/28

(c)

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

200

186,020

Supranational

—

0.9%

European

Investment

Bank,

0.50%

,

11/15/23

(c)

400

427,097

Total

Foreign

Agency

Obligations

—

1.5%

(Cost:

$779,132)

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

713,132

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

1.8%

(a)(b)

Angel

Oak

Mortgage

Trust,

Series

2022-2,

Class

A1,

3.35%,

01/25/67

..........

USD

44

39,822

COLT

Mortgage

Loan

Trust,

Series

2022-3,

Class

A1,

3.90%,

02/25/67

..........

90

83,426

CSMC

Trust,

Series

2021-NQM8,

Class

A1,

1.84%,

10/25/66

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

84

72,202

Deephaven

Residential

Mortgage

Trust,

Series

2021-4,

Class

A1,

1.93%,

11/25/66

.....

82

69,250

Flagstar

Mortgage

Trust,

Series

2021-12,

Class

A19,

5.00%,

11/25/51

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

115

112,169

GCAT

Trust,

Series

2021-NQM7,

Class

A1,

1.91%,

08/25/66

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

67

58,886

JP

Morgan

Mortgage

Trust,

Series

2021-7,

Class

A3,

2.50%,

11/25/51

..........

110

88,414

MFA

Trust,

Series

2021-INV2,

Class

A1,

1.91%,

11/25/56

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

174

148,178

PRKCM

Trust,

Series

2021-AFC2,

Class

A1,

2.07%,

11/25/56

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

100

83,028

RCKT

Mortgage

Trust,

Series

2022-4,

Class

A2,

3.50%,

06/25/52

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

95

83,482

838,857

Commercial

Mortgage-Backed

Securities

—

4.1%

AREIT

LLC,

Series

2022-CRE7,

Class

A,

(1-mo.

CME

Term

SOFR

at

2.24%

Floor

+

2.24%),

6.99%,

06/17/39

(a)(b)

.........

100

99,250

BAMLL

Commercial

Mortgage

Securities

Trust,

Series

2015-200P,

Class

A,

3.22%,

04/14/33

(b)

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

200

186,543

Commercial

Mortgage

Trust

Series

2013-CR10,

Class

A4,

4.21%,

08/10/46

(a)

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

168

167,652

Series

2015-CR22,

Class

A5,

3.31%,

03/10/48

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

200

191,461

CSAIL

Commercial

Mortgage

Trust,

Series

2016-C5,

Class

A5,

3.76%,

11/15/48

....

200

190,971

Grace

Trust,

Series

2020-GRCE,

Class

A,

2.35%,

12/10/40

(b)

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

150

116,926

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

(b)

Series

2021-NYAH,

Class

A,

(1-mo.

LIBOR

USD

at

0.76%

Floor

+

0.76%),

5.44%,

06/15/38

(a)

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

200

193,655

Series

2022-OPO,

Class

A,

3.02%,

01/05/39

100

86,789

MAD

Mortgage

Trust,

Series

2017-330M,

Class

A,

2.98%,

08/15/34

(a)(b)

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

250

236,893

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

Series

2014-C15,

Class

A4,

4.05%,

04/15/47

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

135

132,841

Series

2015-C20,

Class

A4,

3.25%,

02/15/48

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

180

172,477

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

Ready

Capital

Mortgage

Financing

LLC,

Series

2022-FL8,

Class

A,

(SOFR

30

Day

Average

at

1.65%

Floor

+

1.65%),

6.22%,

01/25/37

(a)

(b)

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

USD

60

$

58,972

Wells

Fargo

Commercial

Mortgage

Trust,

Series

2016-LC25,

Class

A4,

3.64%,

12/15/59

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

50

46,889

1,881,319

Total

Non-Agency

Mortgage-Backed

Securities

—

5.9%

(Cost:

$2,965,991)

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

2,720,176

U.S.

Government

Sponsored

Agency

Securities

Agency

Obligations

—

2.2%

Federal

Farm

Credit

Bank

Bonds

1.68%, 09/17/35

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

220

162,453

2.17%, 10/29/29

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

80

70,619

2.25%, 08/15/29

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

150

133,366

Federal

Home

Loan

Bank

Bonds

0.60%, 12/30/26

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

120

105,717

2.06%, 09/27/29

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

150

131,716

2.18%, 11/06/29

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

100

88,337

Federal

Home

Loan

Mortgage

Corp.,

0.65%, 05/28/26

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

120

108,014

Federal

National

Mortgage

Association

0.74%, 08/25/27

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

120

104,256

0.81%, 09/25/28

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

120

101,800

1,006,278

Mortgage-Backed

Securities

—

7.3%

Government

National

Mortgage

Association

2.50%, 10/20/51

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

200

174,673

3.00%, 10/20/51

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

994

907,193

Uniform

Mortgage-Backed

Securities

2.50%, 11/01/51

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

184

160,705

3.00%, 11/01/51

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

251

230,207

3.00%, 04/25/53

(d)

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

980

879,314

3.50%, 11/01/51

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

943

899,970

5.50%, 04/25/53

(d)

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

123

124,242

3,376,304

Total

U.S.

Government

Sponsored

Agency

Securities

—

9.5%

(Cost:

$4,701,298)

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

4,382,582

U.S.

Treasury

Obligations

U.S.

Treasury

Notes

0.88%, 01/31/24

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

1,155

1,118,500

1.50%, 02/29/24

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

3,560

3,460,292

2.25%, 03/31/24

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

1,400

1,367,680

1.75%, 03/15/25

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

120

114,778

2.88%, 06/15/25

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

1,780

1,738,003

3.50%, 09/15/25

-

01/31/28

..........

2,010

1,991,522

4.50%, 11/15/25

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

25

25,369

3.88%, 01/15/26

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

1,500

1,500,469

4.00%, 02/15/26

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

1,080

1,084,472

4.63%, 03/15/26

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

1,040

1,063,725

Total

U.S.

Treasury

Obligations

—

29.2%

(Cost:

$13,447,370)

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

13,464,810

Total

Long-Term

Investments

—

98.1%

(Cost:

$46,980,405)

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

45,300,143

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

29

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the six

months

ended

March

31,

2023

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Security

Par

(000)

Par

(000)

Value

Short-Term

Securities

Commercial

Paper

—

2.1%

(e)

AT&T,

Inc.,

5.93%

,

02/21/24

...........

USD

250

$

237,122

Enel

Finance

America

LLC,

5.27%

,

09/06/23

250

243,002

NatWest

Markets

plc,

5.74%

,

02/26/24

....

250

237,085

Societe

Generale

SA,

5.70%

,

03/06/24

....

250

238,497

Total

Commercial

Paper

—

2.1%

(Cost:

$956,629)

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

955,706

Shares

Shares

Money

Market

Funds

—

1.2%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

4.70%

(f)(g)

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

558,511

558,511

Total

Money

Market

Funds

—

1.2%

(Cost:

$558,511)

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

558,511

Total

Short-Term

Securities

—

3.3%

(Cost:

$1,515,140)

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

1,514,217

Total

Investments

Before

TBA

Sale

Commitments

—

101.4%

(Cost:

$48,495,545

)

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

46,814,360

Security

Par

(000)

Pa

r

(

000)

Value

TBA

Sale

Commitments

Mortgage-Backed

Securities

—

(2.2)%

Uniform

Mortgage-Backed

Securities

(d)

3.00%

,

 04/25/53

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

USD

(980)

$

(879,314)

5.50%

,

 04/25/53

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

(123)

(124,242)

Total

TBA

Sale

Commitments

—

(2.2)%

(Proceeds:

$(997,789))

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

(1,003,556)

Total

Investments

Net

of

TBA

Sale

Commitments

—

99.2%

(Cost:

$47,497,756

)

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

45,810,804

Other

Assets

Less

Liabilities

—

0.8%

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

359,008

Net

Assets

—

100.0%

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

$

46,169,812

(a)

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.

(b)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(c)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(d)

Represents

or

includes

a

TBA

transaction.

(e)

Rates

are

discount

rates

or

a

range

of

discount

rates

as

of

period

end.

(f)

Annualized

7-day

yield

as

of

period

end.

(g)

Affiliate

of

the

Fund.

Affiliated

Issuer

Value

at

09/30/22

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

03/31/23

Shares

Held

at

03/31/23

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

1,345,914

$

—

$

(787,403)

(a)

$

—

$

—

$

558,511

558,511

$

15,809

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

30

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Derivative

Financial

Instruments

Outstanding

as

of

Period

End

Futures

Contracts

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

(000)

Value/

Unrealized

Appreciation

(Depreciation)

Long

Contracts

U.S.

Treasury

2

Year

Note

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

88

06/30/23

$

18,181

$

155,034

Short

Contracts

Euro-Bobl

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

9

06/08/23

1,151

(25,518)

Euro-Bund

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

1

06/08/23

147

(5,225)

Euro-Schatz

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

1

06/08/23

115

(1,036)

Japan

10

Year

Bond

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

1

06/13/23

1,116

(21,419)

U.S.

Treasury

10

Year

Note

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

9

06/21/23

1,036

5,424

U.S.

Treasury

10

Year

Ultra

Note

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

7

06/21/23

849

(25,887)

U.S.

Treasury

Long

Bond

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

5

06/21/23

657

(22,760)

U.S.

Treasury

Ultra

Bond

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

2

06/21/23

283

(14,209)

U.S.

Treasury

5

Year

Note

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

35

06/30/23

3,838

(38,820)

(149,450)

$

5,584

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

USD

2,518,599

EUR

2,335,500

Bank

of

America

NA

06/21/23

$

(25,658)

USD

20,492

EUR

19,000

Deutsche

Bank

AG

06/21/23

(206)

$

(25,864)

Centrally

Cleared

Credit

Default

Swaps

—

Buy

Protection

Reference

Obligation/Index

Financing

Rate

Paid

by

the

Fund

Payment

Frequency

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

Markit

CDX

North

American

High

Yield

Index

Series

39.V1

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

5.00

%

Quarterly

12/20/27

USD

2,000

$

(26,937)

$

33,239

$

(60,176)

Markit

CDX

North

American

Investment

Grade

Index

Series

40.V1

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

1.00

Quarterly

06/20/28

USD

940

(11,064)

(6,988)

(4,076)

$

(38,001)

$

26,251

$

(64,252)

Centrally

Cleared

Interest

Rate

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1-day

SOFR

Annual

4.35%

Annual

04/05/23

(a)

12/31/24

USD

1,025

$

2,532

$

172

$

2,360

3.59%

Annual

1-day

SOFR

Annual

04/05/23

(a)

05/31/27

USD

1,025

(5,450)

37

(5,487)

$

(2,918)

$

209

$

(3,127)

(a)

Forward

swap.

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

31

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1-day

SOFR

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

Secured

Overnight

Financing

Rate

4.87

%

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

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

$

33,448

$

(6,988)

$

2,360

$

(69,739)

$

—

(a)

Includes

cumulative

appreciation

(depreciation)

on

centrally

cleared

swaps,

as

reported

in

the

Schedule

of

Investments.

Only

current

day’s

variation

margin

is

reported

within

the

Statements

of

Assets

and

Liabilities

and

is

net

of

any

previously

paid

(received)

swap

premium

amounts.

As

of

period

end,

the

fair

values

of

derivative

financial

instruments

located

in

the

Statements

of

Assets

and

Liabilities

were

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Assets

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

ap

preciation

on

futures

contracts

(a)

......

$

—

$

—

$

—

$

—

$

160,458

$

—

$

160,458

Swaps

—

centrally

cleared

Unrealized

apprecia

tion

on

centrally

cleared

swaps

(a)

.

—

—

—

—

2,360

—

2,360

$

—

$

—

$

—

$

—

$

162,818

$

—

$

162,818

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

de

preciation

on

futures

contracts

(a)

......

$

—

$

—

$

—

$

—

$

154,874

$

—

$

154,874

Forward

foreign

currency

exchange

contracts

Unrealized

depreciation

on

forward

foreign

currency

exchange

contracts

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

—

—

—

25,864

—

—

25,864

Swaps

—

centrally

cleared

Unrealized

deprecia

tion

on

centrally

cleared

swaps

(a)

.

—

64,252

—

—

5,487

—

69,739

$

—

$

64,252

$

—

$

25,864

$

160,361

$

—

$

250,477

(a)

Net

cumulative

unrealized

appreciation

(depreciation)

on

futures

contracts

and

centrally

cleared

swaps,

if

any,

are

reported

in

the

Schedule

of

Investments.

In

the

Statements

of

Assets

and

Liabilities,

only

current

day’s

variation

margin

is

reported

in

receivables

or

payables

and

the

net

cumulative

unrealized

appreciation

(depreciation)

is

included

in

accumulated

earnings

(loss).

For

the

period

ended

March

31,

2023,

the

effect

of

derivative

financial

instruments

in

the

Statements

of

Operations

was

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Net

Realized

Gain

(Loss)

from

Futures

contracts

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

$

—

$

—

$

—

$

—

$

(38,431)

$

—

$

(38,431)

Forward

foreign

currency

exchange

contracts

....

—

—

—

(235,998)

—

—

(235,998)

Swaps

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

—

(48,791)

—

—

3,127

—

(45,664)

$

—

$

(48,791)

$

—

$

(235,998)

$

(35,304)

$

—

$

(320,093)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

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

$

—

$

—

$

—

$

—

$

(59,327)

$

—

$

(59,327)

Forward

foreign

currency

exchange

contracts

....

—

—

—

(107,864)

—

—

(107,864)

Swaps

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

—

(61,838)

—

—

(17,646)

—

(79,484)

$

—

$

(61,838)

$

—

$

(107,864)

$

(76,973)

$

—

$

(246,675)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

32

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

long

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

$

18,315,469

Average

notional

value

of

contracts

—

short

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

$

9,322,935

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

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

$

3,547,322

Average

amounts

sold

—

in

USD

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

$

956,685

Credit

default

swaps

Average

notional

value

—

buy

protection

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

$

2,730,000

Interest

rate

swaps

Average

notional

value

—

pays

fixed

rate

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

$

1,025,000

Average

notional

value

—

receives

fixed

rate

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

$

1,025,000

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Liabilities

Derivative

Financial

Instruments

Futures

contracts

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

$

7,037

Forward

foreign

currency

exchange

contracts

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

25,864

Swaps

—

centrally

cleared

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

25,118

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

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

$

58,019

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

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

(32,155)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

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

$

25,864

The

following

tables

present

the

Fund's

derivative

assets

and

liabilities

by

counterparty

net

of

amounts

available

for

offset

under

an

MNA

and

net

of

the

related

collateral

received

and

pledged

by

the

Fund:

Counterparty

Derivative

Liabilities

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

Non-cash

Collateral

Pledged

Cash

Collateral

Pledged

Net

Amount

of

Derivative

Liabilities

(a)(b)

Bank

of

America

NA

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

$

25,658

$

—

$

—

$

—

$

25,658

Deutsche

Bank

AG

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

206

—

—

—

206

$

25,864

$

—

$

—

$

—

$

25,864

(a)

Net

amount

may

also

include

forward

foreign

currency

exchange

contracts

that

are

not

required

to

be

collateralized.

(b)

Net

amount

represents

the

net

amount

payable

due

to

the

counterparty

in

the

event

of

default.

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

33

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Fair

Value

Hierarchy

as

of Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund's

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

See

notes

to

financial

statements.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

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

$

—

$

7,414,104

$

—

$

7,414,104

Corporate

Bonds

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

—

16,605,339

—

16,605,339

Foreign

Agency

Obligations

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

—

713,132

—

713,132

Non-Agency

Mortgage-Backed

Securities

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

—

2,720,176

—

2,720,176

U.S.

Government

Sponsored

Agency

Securities

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

—

4,382,582

—

4,382,582

U.S.

Treasury

Obligations

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

—

13,464,810

—

13,464,810

Short-Term

Securities

Commercial

Paper

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

—

955,706

—

955,706

Money

Market

Funds

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

558,511

—

—

558,511

Liabilities

Investments

TBA

Sale

Commitments

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

—

(1,003,556)

—

(1,003,556)

$

558,511

$

45,252,293

$

—

$

45,810,804

Derivative

Financial

Instruments

(a)

Assets

Interest

rate

contracts

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

$

160,458

$

2,360

$

—

$

162,818

Liabilities

Credit

contracts

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

—

(64,252)

—

(64,252)

Foreign

currency

exchange

contracts

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

—

(25,864)

—

(25,864)

Interest

rate

contracts

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

(154,874)

(5,487)

—

(160,361)

$

5,584

$

(93,243)

$

—

$

(87,659)

(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.

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

34

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

March

31,

2023

Security

Par

(000)

Pa

r

(

000)

Value

Asset-Backed

Securities

Cayman

Islands

—

6.3%

(a)(b)

AGL

Core

CLO

4

Ltd.,

Series

2020-4A,

Class

A1R,

(3-mo.

LIBOR

USD

at

1.07%

Floor

+

1.07%),

5.88%,

04/20/33

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

USD

250

$

245,995

Anchorage

Capital

CLO

8

Ltd.,

Series

2016-8A,

Class

BR2,

(3-mo.

LIBOR

USD

at

1.80%

Floor

+

1.80%),

6.61%,

10/27/34

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

250

239,537

Bridge

Street

CLO

II

Ltd.,

Series

2021-

1A,

Class

A1A,

(3-mo.

LIBOR

USD

at

1.23%

Floor

+

1.23%),

6.04%,

07/20/34

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

250

244,825

CIFC

Funding

Ltd.,

Series

2020-3A,

Class

A1R,

(3-mo.

LIBOR

USD

at

1.13%

Floor

+

1.13%),

5.94%,

10/20/34

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

250

243,927

Gilbert

Park

CLO

Ltd.,

Series

2017-1A,

Class

A,

(3-mo.

LIBOR

USD

at

1.19%

Floor

+

1.19%),

5.98%,

10/15/30

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

250

247,617

Madison

Park

Funding

XVIII

Ltd.,

Series

2015-18A,

Class

ARR,

(3-

mo.

LIBOR

USD

at

0.94%

Floor

+

0.94%),

5.76%,

10/21/30

.......

249

245,917

Neuberger

Berman

Loan

Advisers

CLO

35

Ltd.,

Series

2019-35A,

Class

C,

(3-mo.

LIBOR

USD

at

2.60%

Floor

+

2.60%),

7.40%,

01/19/33

.......

250

244,274

Palmer

Square

CLO

Ltd.,

Series

2021-

3A,

Class

A1,

(3-mo.

LIBOR

USD

at

1.15%

Floor

+

1.15%),

5.94%,

01/15/35

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

250

243,061

Pikes

Peak

CLO

8,

Series

2021-8A,

Class

B,

(3-mo.

LIBOR

USD

at

1.75%

Floor

+

1.75%),

6.56%,

07/20/34

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

250

241,023

TCW

CLO

AMR

Ltd.,

Series

2019-1A,

Class

ASNR,

(3-mo.

LIBOR

USD

at

1.22%

Floor

+

1.22%),

6.09%,

08/16/34

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

250

244,851

Trimaran

Cavu

Ltd.,

Series

2021-2A,

Class

D1,

(3-mo.

LIBOR

USD

at

3.25%

Floor

+

3.25%),

8.07%,

10/25/34

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

250

226,113

2,667,140

Ireland

—

0.5%

Prodigy

Finance

DAC,

Series

2021-1A,

Class

A,

(1-mo.

LIBOR

USD

+

1.25%),

6.10%,

07/25/51

(a)(b)

....

199

193,727

United

States

—

6.2%

(a)

Diameter

Capital

CLO

1

Ltd.,

Series

2021-1A,

Class

A1A,

(3-mo.

LIBOR

USD

at

1.24%

Floor

+

1.24%),

6.03%,

07/15/36

(b)

...........

250

244,903

Home

Partners

of

America

Trust,

Series

2021-2,

Class

F,

3.80%,

12/17/26

.

484

419,862

Legacy

Mortgage

Asset

Trust,

Series

2019-SL2,

Class

M,

4.25%,

02/25/59

(b)

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

206

160,917

Lendmark

Funding

Trust,

Series

2022-

1A,

Class

A,

5.12%,

07/20/32

...

100

98,357

Mariner

Finance

Issuance

Trust,

Series

2019-AA,

Class

B,

3.51%,

07/20/32

100

97,035

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Mosaic

Solar

Loans

LLC,

Series

2017-

2A,

Class

C,

2.00%,

06/22/43

...

USD

58

$

56,006

Navient

Private

Education

Loan

Trust,

Series

2015-AA,

Class

A3,

(1-mo.

LIBOR

USD

at

1.70%

Floor

+

1.70%),

6.38%,

11/15/30

(b)

......

100

99,678

PRET

LLC,

Series

2021-NPL6,

Class

A1,

2.49%,

07/25/51

(c)

........

313

294,458

Progress

Residential

Trust,

Series

2021-SFR10,

Class

F,

4.61%,

12/17/40

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

500

413,193

Regional

Management

Issuance

Trust

Series

2020-1,

Class

A,

2.34%,

10/15/30

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

100

95,790

Series

2021-1,

Class

A,

1.68%,

03/17/31

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

100

93,342

Series

2022-1,

Class

A,

3.07%,

03/15/32

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

200

187,366

Tricon

Residential

Trust,

Series

2021-

SFR1,

Class

F,

3.69%,

07/17/38

..

400

352,504

2,613,411

Total

Asset-Backed

Securities

—

13.0%

(Cost:

$5,784,498)

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

5,474,278

Corporate

Bonds

Australia

—

0.0%

FMG

Resources

August

2006

Pty.

Ltd.,

6.13%

,

04/15/32

(a)

...........

6

5,775

Belgium

—

0.5%

Anheuser-Busch

InBev

Worldwide,

Inc.,

5.88%

,

06/15/35

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

31

33,755

KBC

Group

NV,

(3-mo.

EURIBOR

+

0.72%),

0.38%

,

06/16/27

(b)(d)

....

EUR

200

193,287

227,042

Canada

—

0.1%

1011778

BC

ULC,

3.88%

,

01/15/28

(a)

USD

2

1,860

Rogers

Communications,

Inc.,

3.70%

,

11/15/49

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

43

31,532

33,392

China

—

0.3%

NXP

BV

5.55%,

12/01/28

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

68

69,360

3.40%,

05/01/30

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

64

57,352

126,712

France

—

0.9%

(d)

Banque

Federative

du

Credit

Mutuel

SA,

0.10%

,

10/08/27

.........

EUR

100

92,721

BNP

Paribas

SA,

(3-mo.

EURIBOR

+

0.80%),

0.38%

,

10/14/27

(b)

.....

100

94,854

Engie

SA,

1.75%

,

03/27/28

.......

100

99,783

Societe

Generale

SA,

(3-mo.

EURIBOR

+

1.28%),

0.88%

,

09/22/28

(b)

....

100

92,973

380,331

Germany

—

0.8%

Commerzbank

AG,

(3-mo.

EURIBOR

+

1.30%),

0.75%

,

03/24/26

(b)(d)

....

100

99,704

Deutsche

Bank

AG,

(1-Day

SOFR

+

1.87%),

2.13%

,

11/24/26

(b)

.....

USD

150

129,266

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

35

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

Germany

(continued)

E.ON

SE,

1.00%

,

10/07/25

(d)

......

EUR

100

$

102,523

331,493

Italy

—

0.7%

(d)

Intesa

Sanpaolo

SpA

,

1.50%

,

04/10/24

100

105,902

Iren

SpA

1.95%,

09/19/25

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

100

103,242

1.50%,

10/24/27

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

100

98,788

307,932

Japan

—

0.5%

Takeda

Pharmaceutical

Co.

Ltd.,

5.00%

,

11/26/28

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

USD

200

202,155

South

Africa

—

0.4%

Anglo

American

Capital

plc,

3.88%

,

03/16/29

(a)

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

200

183,475

Spain

—

0.9%

(d)

Banco

de

Sabadell

SA,

(1-Year

EUR

Swap

Annual

+

1.55%),

1.13%

,

03/11/27

(b)

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

EUR

100

97,853

Banco

Santander

SA,

0.30%

,

10/04/26

200

193,659

CaixaBank

SA,

(3-mo.

EURIBOR

+

0.85%),

0.38%

,

11/18/26

(b)

.....

100

97,608

389,120

Switzerland

—

0.6%

Credit

Suisse

AG,

4.75%

,

08/09/24

..

USD

250

241,950

United

Kingdom

—

1.2%

CNH

Industrial

NV,

4.50%

,

08/15/23

.

188

187,060

National

Grid

plc,

0.25%

,

09/01/28

(d)

.

EUR

100

89,638

RELX

Capital,

Inc.,

4.00%

,

03/18/29

.

USD

24

23,128

SSE

plc

(d)

0.88%,

09/06/25

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

EUR

100

101,872

1.38%,

09/04/27

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

100

99,915

501,613

United

States

—

21.5%

AbbVie,

Inc.

4.55%,

03/15/35

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

USD

57

55,733

4.70%,

05/14/45

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

43

40,292

AEP

Texas,

Inc.

3.95%,

06/01/28

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

95

91,426

5.25%,

05/15/52

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

43

41,972

Aetna,

Inc.,

6.63%

,

06/15/36

......

7

7,762

Agilent

Technologies,

Inc.,

3.05%

,

09/22/26

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

20

18,863

Albertsons

Cos.,

Inc.,

4.88%

,

02/15/30

(a)

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

2

1,867

Amazon.com,

Inc.

4.70%,

12/01/32

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

34

34,849

4.05%,

08/22/47

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

57

51,686

American

Express

Co.,

(1-Day

SOFR

+

1.76%),

4.42%

,

08/03/33

(b)

.....

24

22,945

American

International

Group,

Inc.,

4.38%

,

06/30/50

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

27

23,058

American

Tower

Corp.

5.00%,

02/15/24

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

12

11,945

0.45%,

01/15/27

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

EUR

100

94,627

3.80%,

08/15/29

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

USD

105

97,581

American

Transmission

Systems,

Inc.,

2.65%

,

01/15/32

(a)

...........

34

28,626

Amgen,

Inc.

5.15%,

03/02/28

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

51

52,072

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

4.05%,

08/18/29

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

USD

24

$

23,156

4.66%,

06/15/51

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

4

3,635

5.65%,

03/02/53

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

15

15,611

5.75%,

03/02/63

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

15

15,564

Aon

Corp.

3.75%,

05/02/29

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

39

37,269

5.35%,

02/28/33

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

43

44,540

Apple,

Inc.

4.38%,

05/13/45

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

26

25,236

2.80%,

02/08/61

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

37

25,181

Applied

Materials,

Inc.,

4.35%

,

04/01/47

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

7

6,580

AT&T,

Inc.

2.75%,

06/01/31

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

33

28,440

5.25%,

03/01/37

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

42

42,003

4.75%,

05/15/46

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

63

56,897

4.50%,

03/09/48

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

11

9,518

3.65%,

09/15/59

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

60

42,876

Atlantic

City

Electric

Co.,

4.00%

,

10/15/28

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

8

7,764

Atmos

Energy

Corp.,

2.85%

,

02/15/52

10

6,790

Autodesk,

Inc.,

2.40%

,

12/15/31

....

53

44,082

Baltimore

Gas

&

Electric

Co.,

3.50%

,

08/15/46

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

74

57,144

Bank

of

America

Corp.

(b)

(1-Day

SOFR

+

1.46%),

1.49%,

05/19/24

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

397

394,795

(1-Day

SOFR

+

1.32%),

2.69%,

04/22/32

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

131

109,323

(1-Day

SOFR

+

1.33%),

2.97%,

02/04/33

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

310

261,033

(1-Day

SOFR

+

1.83%),

4.57%,

04/27/33

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

59

56,162

Baxter

International,

Inc.,

2.60%

,

08/15/26

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

28

26,120

Becton

Dickinson

&

Co.,

4.69%

,

02/13/28

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

25

25,101

Berry

Global,

Inc.,

5.50%

,

04/15/28

(a)

20

19,935

Biogen,

Inc.,

5.20%

,

09/15/45

.....

9

9,133

Bristol-Myers

Squibb

Co.,

4.55%

,

02/20/48

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

29

27,401

Broadcom,

Inc.

4.30%,

11/15/32

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

107

98,584

3.14%,

11/15/35

(a)

...........

39

29,993

4.93%,

05/15/37

(a)

...........

56

50,925

Burlington

Northern

Santa

Fe

LLC,

3.30%

,

09/15/51

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

33

25,178

Cameron

LNG

LLC

(a)

2.90%,

07/15/31

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

25

22,235

3.30%,

01/15/35

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

187

160,908

Capital

One

Financial

Corp.,

(1-Day

SOFR

+

2.60%),

5.82%

,

02/01/34

(b)

67

64,743

CCO

Holdings

LLC

(a)

5.38%,

06/01/29

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

4

3,673

4.75%,

03/01/30

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

4

3,466

Cedar

Fair

LP

5.50%,

05/01/25

(a)

...........

2

1,999

5.25%,

07/15/29

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

3

2,797

CenterPoint

Energy

Houston

Electric

LLC

Series

AE,

2.35%,

04/01/31

....

10

8,529

4.95%,

04/01/33

............

15

15,318

Series

AF,

3.35%,

04/01/51

....

15

11,423

Series

AJ,

4.85%,

10/01/52

....

25

24,368

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

36

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Charter

Communications

Operating

LLC

5.13%,

07/01/49

............

USD

8

$

6,333

4.80%,

03/01/50

............

108

82,317

3.90%,

06/01/52

............

15

9,915

4.40%,

12/01/61

............

15

10,249

3.95%,

06/30/62

............

18

11,405

Citigroup,

Inc.

(b)

(1-Day

SOFR

+

1.35%),

3.06%,

01/25/33

...............

62

52,469

(1-Day

SOFR

+

1.94%),

3.79%,

03/17/33

...............

27

24,200

Clear

Channel

Outdoor

Holdings,

Inc.,

5.13%

,

08/15/27

(a)

...........

4

3,590

Comcast

Corp.

1.50%,

02/15/31

............

49

39,346

5.50%,

11/15/32

............

55

58,651

3.75%,

04/01/40

............

44

37,769

3.40%,

07/15/46

............

31

24,042

Commercial

Metals

Co.,

4.38%

,

03/15/32

.................

4

3,441

Commonwealth

Edison

Co.

4.00%,

03/01/48

............

18

15,289

Series

133,

3.85%,

03/15/52

....

24

19,565

5.30%,

02/01/53

............

10

10,440

Consolidated

Edison

Co.

of

New

York,

Inc.,

6.15%

,

11/15/52

.........

26

29,303

Cox

Communications,

Inc.,

3.15%

,

08/15/24

(a)

................

14

13,645

Crown

Castle,

Inc.

2.25%,

01/15/31

............

161

133,433

2.50%,

07/15/31

............

52

43,704

CSX

Corp.

2.50%,

05/15/51

............

26

16,701

4.25%,

11/01/66

............

10

8,256

CVS

Health

Corp.,

3.25%

,

08/15/29

.

35

32,009

Dell

International

LLC,

6.02%

,

06/15/26

67

68,763

Ecolab,

Inc.,

3.95%

,

12/01/47

.....

11

9,475

Edison

International

5.75%,

06/15/27

............

34

34,713

6.95%,

11/15/29

............

45

48,682

Electronic

Arts,

Inc.,

1.85%

,

02/15/31

10

8,249

Elevance

Health,

Inc.,

6.10%

,

10/15/52

19

21,198

Eli

Lilly

&

Co.

4.88%,

02/27/53

............

5

5,170

4.95%,

02/27/63

............

5

5,145

Entergy

Louisiana

LLC,

4.20%

,

09/01/48

.................

41

35,540

Enterprise

Products

Operating

LLC,

3.30%

,

02/15/53

............

45

32,554

Equinix

,

Inc.

0.25%,

03/15/27

............

EUR

100

93,459

3.20%,

11/18/29

............

USD

63

56,237

2.15%,

07/15/30

............

35

28,618

2.50%,

05/15/31

............

15

12,351

Eversource

Energy,

5.45%

,

03/01/28

66

68,391

Exelon

Corp.

5.15%,

03/15/28

............

114

115,985

4.45%,

04/15/46

............

32

27,530

5.60%,

03/15/53

............

15

15,276

FactSet

Research

Systems,

Inc.,

3.45%

,

03/01/32

............

31

27,024

Florida

Power

&

Light

Co.,

4.05%

,

10/01/44

.................

72

63,042

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Ford

Motor

Co.,

3.25%

,

02/12/32

...

USD

2

$

1,572

General

Motors

Co.,

5.00%

,

10/01/28

39

38,427

General

Motors

Financial

Co.,

Inc.

5.10%,

01/17/24

............

199

198,387

4.35%,

04/09/25

............

152

148,829

4.30%,

04/06/29

............

13

12,082

2.35%,

01/08/31

............

61

48,165

Gilead

Sciences,

Inc.

4.60%,

09/01/35

............

38

37,634

4.75%,

03/01/46

............

26

24,998

Global

Payments,

Inc.

1.20%,

03/01/26

............

218

193,894

4.45%,

06/01/28

............

51

48,406

5.30%,

08/15/29

............

34

33,575

GLP

Capital

LP

4.00%,

01/15/30

............

34

30,149

4.00%,

01/15/31

............

27

23,161

3.25%,

01/15/32

............

40

32,454

Goldman

Sachs

Group,

Inc.

(The)

(b)

(3-mo.

LIBOR

USD

+

1.51%),

3.69%,

06/05/28

..........

30

28,417

(1-Day

SOFR

+

1.28%),

2.62%,

04/22/32

...............

246

204,916

Hasbro,

Inc.,

3.90%

,

11/19/29

.....

11

10,014

HCA,

Inc.

5.88%,

02/01/29

............

21

21,454

5.50%,

06/15/47

............

43

40,364

Herc

Holdings,

Inc.,

5.50%

,

07/15/27

(a)

4

3,860

Hewlett

Packard

Enterprise

Co.

5.90%,

10/01/24

............

40

40,504

4.90%,

10/15/25

(c)

...........

38

37,939

iHeartCommunications

,

Inc.,

5.25%

,

08/15/27

(a)

................

2

1,635

Intel

Corp.

4.88%,

02/10/28

............

60

60,964

4.10%,

05/19/46

............

9

7,632

5.70%,

02/10/53

............

18

18,371

International

Business

Machines

Corp.,

7.00%

,

10/30/25

............

8

8,479

Interpublic

Group

of

Cos.,

Inc.

(The)

4.65%,

10/01/28

............

8

7,849

4.75%,

03/30/30

............

8

7,856

JPMorgan

Chase

&

Co.

(b)

(1-Day

SOFR

+

1.02%),

2.07%,

06/01/29

...............

38

32,972

(1-Day

SOFR

+

1.75%),

4.57%,

06/14/30

...............

27

26,283

(1-Day

SOFR

+

1.25%),

2.58%,

04/22/32

...............

10

8,416

(1-Day

SOFR

+

1.26%),

2.96%,

01/25/33

...............

16

13,681

(1-Day

SOFR

+

1.80%),

4.59%,

04/26/33

...............

151

146,217

KLA

Corp.

3.30%,

03/01/50

............

52

39,748

5.25%,

07/15/62

............

25

25,308

L3Harris

Technologies,

Inc.

2.90%,

12/15/29

............

72

63,640

1.80%,

01/15/31

............

141

113,967

Lam

Research

Corp.,

4.88%

,

03/15/49

25

24,759

Lamar

Media

Corp.,

3.75%

,

02/15/28

2

1,845

Lowe's

Cos.,

Inc.

5.50%,

10/15/35

............

8

8,178

2.80%,

09/15/41

............

30

21,264

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

37

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Marsh

&

McLennan

Cos.,

Inc.,

5.45%

,

03/15/53

.................

USD

15

$

15,448

Masonite

International

Corp.,

5.38%

,

02/01/28

(a)

................

2

1,910

Medline

Borrower

LP,

3.88%

,

04/01/29

(a)

................

10

8,675

MidAmerican

Energy

Co.

3.65%,

04/15/29

............

63

60,090

4.25%,

07/15/49

............

35

31,278

Moody's

Corp.

4.25%,

08/08/32

............

57

54,882

3.75%,

02/25/52

............

8

6,394

Morgan

Stanley

(b)

(1-Day

SOFR

+

1.14%),

2.70%,

01/22/31

...............

442

380,652

(1-Day

SOFR

+

2.56%),

6.34%,

10/18/33

...............

20

21,844

Motorola

Solutions,

Inc.

5.60%,

06/01/32

............

105

105,612

5.50%,

09/01/44

............

49

46,510

National

Retail

Properties,

Inc.,

3.00%

,

04/15/52

.................

34

21,248

Navient

Corp.

5.88%,

10/25/24

............

2

1,943

6.75%,

06/25/25

............

2

1,944

6.75%,

06/15/26

............

2

1,950

Newmont

Corp.,

2.25%

,

10/01/30

...

41

34,443

Nexstar

Media,

Inc.,

5.63%

,

07/15/27

(a)

4

3,696

Norfolk

Southern

Corp.

3.65%,

08/01/25

............

4

3,888

3.00%,

03/15/32

............

27

23,730

3.94%,

11/01/47

............

27

22,117

3.05%,

05/15/50

............

16

11,074

4.55%,

06/01/53

............

9

8,090

Northern

States

Power

Co.,

2.60%

,

06/01/51

.................

37

24,572

NRG

Energy,

Inc.

2.45%,

12/02/27

(a)

...........

32

27,378

5.75%,

01/15/28

............

2

1,961

5.25%,

06/15/29

(a)

...........

2

1,857

NSTAR

Electric

Co.,

3.95%

,

04/01/30

13

12,587

Nucor

Corp.,

3.95%

,

05/01/28

.....

26

25,016

Ohio

Power

Co.

Series

P,

2.60%,

04/01/30

.....

5

4,335

Series

R,

2.90%,

10/01/51

.....

22

15,023

Omnicom

Group,

Inc.,

2.60%

,

08/01/31

5

4,246

Oncor

Electric

Delivery

Co.

LLC

3.70%,

11/15/28

............

69

66,794

3.10%,

09/15/49

............

36

26,484

Oracle

Corp.

4.30%,

07/08/34

............

20

18,339

3.60%,

04/01/40

............

129

100,122

4.00%,

07/15/46

............

14

10,682

4.00%,

11/15/47

............

4

3,051

3.60%,

04/01/50

............

123

87,243

3.95%,

03/25/51

............

32

24,079

5.55%,

02/06/53

............

15

14,281

4.10%,

03/25/61

............

7

5,149

Outfront

Media

Capital

LLC,

5.00%

,

08/15/27

(a)

................

4

3,603

Owens

Corning,

3.95%

,

08/15/29

...

26

24,493

Paramount

Global,

4.38%

,

03/15/43

.

20

14,212

PECO

Energy

Co.

2.85%,

09/15/51

............

29

19,809

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

4.38%,

08/15/52

............

USD

10

$

9,049

Penske

Truck

Leasing

Co.

LP,

5.88%

,

11/15/27

(a)

................

55

56,164

Pfizer,

Inc.,

1.75%

,

08/18/31

......

38

31,345

Piedmont

Natural

Gas

Co.,

Inc.,

2.50%

,

03/15/31

.................

11

9,177

Post

Holdings,

Inc.

(a)

5.63%,

01/15/28

............

3

2,940

5.50%,

12/15/29

............

2

1,885

Prologis

LP

3.25%,

10/01/26

............

22

21,257

3.88%,

09/15/28

............

7

6,768

Public

Service

Co.

of

New

Hampshire,

5.15%

,

01/15/53

............

18

18,239

Public

Service

Electric

&

Gas

Co.

3.70%,

05/01/28

............

28

26,976

4.90%,

12/15/32

............

36

36,829

3.60%,

12/01/47

............

6

4,818

QUALCOMM,

Inc.

4.25%,

05/20/32

............

23

23,009

6.00%,

05/20/53

............

57

64,760

Realty

Income

Corp.,

3.25%

,

01/15/31

6

5,285

Republic

Services,

Inc.,

3.95%

,

05/15/28

.................

24

23,334

RHP

Hotel

Properties

LP,

4.75%

,

10/15/27

.................

2

1,874

S&P

Global,

Inc.,

4.75%

,

08/01/28

..

34

34,497

Salesforce,

Inc.,

3.05%

,

07/15/61

...

12

8,235

San

Diego

Gas

&

Electric

Co.,

5.35%

,

04/01/53

.................

15

15,448

Select

Medical

Corp.,

6.25%

,

08/15/26

(a)

................

2

1,940

Sherwin-Williams

Co.

(The),

2.30%

,

05/15/30

.................

23

19,517

Sirius

XM

Radio,

Inc.,

5.50%

,

07/01/29

(a)

................

4

3,640

Southern

California

Edison

Co.

Series

A,

4.20%,

03/01/29

.....

64

61,882

2.25%,

06/01/30

............

43

36,525

5.95%,

11/01/32

............

40

43,330

Southwestern

Public

Service

Co.,

Series

8,

3.15%

,

05/01/50

......

26

18,719

Standard

Industries,

Inc.

(a)

5.00%,

02/15/27

............

2

1,900

4.75%,

01/15/28

............

2

1,868

TEGNA,

Inc.

4.63%,

03/15/28

............

2

1,745

5.00%,

09/15/29

............

2

1,729

Tenet

Healthcare

Corp.

4.88%,

01/01/26

............

6

5,882

5.13%,

11/01/27

............

2

1,920

4.38%,

01/15/30

............

3

2,693

Thermo

Fisher

Scientific,

Inc.,

4.95%

,

11/21/32

..................

33

34,244

T-Mobile

USA,

Inc.,

4.75%

,

02/01/28

.

217

214,224

Transcontinental

Gas

Pipe

Line

Co.

LLC

4.60%,

03/15/48

............

42

36,871

3.95%,

05/15/50

............

38

30,211

Union

Pacific

Corp.

3.55%,

05/20/61

............

40

30,275

2.97%,

09/16/62

............

9

5,952

UnitedHealth

Group,

Inc.

4.25%,

06/15/48

............

7

6,303

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

38

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

2.90%,

05/15/50

............

USD

28

$

19,833

6.05%,

02/15/63

............

26

29,602

5.20%,

04/15/63

............

7

7,088

Verisk

Analytics,

Inc.,

5.75%

,

04/01/33

5

5,249

Verizon

Communications,

Inc.

2.55%,

03/21/31

............

166

141,414

2.36%,

03/15/32

............

90

73,836

4.27%,

01/15/36

............

67

62,151

2.65%,

11/20/40

............

45

32,130

3.70%,

03/22/61

............

12

8,948

VICI

Properties

LP

4.25%,

12/01/26

(a)

...........

55

51,316

3.75%,

02/15/27

(a)

...........

40

36,926

4.75%,

02/15/28

............

56

53,083

4.63%,

12/01/29

(a)

...........

38

34,592

4.95%,

02/15/30

............

38

35,658

VMware,

Inc.,

4.70%

,

05/15/30

....

69

66,984

Walt

Disney

Co.

(The),

4.75%

,

09/15/44

.................

24

23,361

Waste

Pro

USA,

Inc.,

5.50%

,

02/15/26

(a)

................

2

1,839

WP

Carey,

Inc.

3.85%,

07/15/29

............

5

4,600

2.40%,

02/01/31

............

13

10,609

9,047,683

Total

Corporate

Bonds

—

28.4%

(Cost:

$13,045,496)

..............................

11,978,673

Foreign

Government

Obligations

Mexico

—

0.4%

United

Mexican

States,

2.66%

,

05/24/31

.................

200

167,400

Panama

—

0.4%

Republic

of

Panama,

3.88%

,

03/17/28

200

191,475

Peru

—

0.1%

Republic

of

Peru,

3.55%

,

03/10/51

..

35

25,567

Uruguay

—

0.1%

Oriental

Republic

of

Uruguay,

5.10%

,

06/18/50

.................

25

25,075

Total

Foreign

Government

Obligations

—

1.0%

(Cost:

$474,491)

................................

409,517

Municipal

Bonds

California

-

0.4%

Bay

Area

Toll

Authority

,

Series

2010S-1,

RB,

7.04%, 04/01/50

.........

20

26,317

Los

Angeles

Community

College

District

,

Series

2010E,

GO,

6.60%, 08/01/42

............

5

6,288

Los

Angeles

Unified

School

District

,

Series

2010RY,

GO,

6.76%, 07/01/34

............

20

23,157

State

of

California

,

Series

2018,

GO,

4.60%, 04/01/38

............

70

67,817

University

of

California

,

Series

2012AD,

RB,

4.86%, 05/15/12

.........

5

4,524

128,103

Security

Par

(000)

Par

(000)

Value

Illinois

-

0.1%

State

of

Illinois

,

Series

2003,

GO,

5.10%, 06/01/33

............

USD

40

$

39,854

New

Jersey

-

0.0%

New

Jersey

Turnpike

Authority

,

Series

2009F,

RB,

7.41%, 01/01/40

....

8

10,058

New

York

-

0.0%

Metropolitan

Transportation

Authority

,

Series

2009A-1,

RB,

5.87%, 11/15/39

............

10

10,031

New

York

City

Municipal

Water

Finance

Authority

,

Series

2010EE,

RB,

6.01%, 06/15/42

............

5

5,756

Port

Authority

of

New

York

&

New

Jersey

,

Series

2011-168,

RB,

4.93%, 10/01/51

............

15

15,295

31,082

Ohio

-

0.0%

American

Municipal

Power,

Inc.

,

Series

2010A,

RB,

8.08%, 02/15/50

....

10

13,717

Texas

-

0.1%

City

of

San

Antonio

Electric

&

Gas

Systems

,

Series

2010A,

RB,

5.81%, 02/01/41

............

10

10,974

State

of

Texas

,

Series

2009A,

GO,

5.52%, 04/01/39

............

15

16,499

27,473

Total

Municipal

Bonds

—

0.6%

(Cost:

$308,960)

................................

250,287

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

0.4%

United

States

—

0.4%

Alternative

Loan

Trust

(b)

Series

2006-OA6,

Class

1A1A,

(1-

mo.

LIBOR

USD

at

0.42%

Floor

+

0.42%),

5.27%,

07/25/46

...

18

15,085

Series

2006-OC10,

Class

2A3,

(1-

mo.

LIBOR

USD

at

0.46%

Floor

+

0.46%),

5.31%,

11/25/36

...

190

157,158

172,243

Commercial

Mortgage-Backed

Securities

—

4.3%

Cayman

Islands

—

0.3%

MF1

Multifamily

Housing

Mortgage

Loan

Trust,

Series

2021-W10,

Class

G,

(1-mo.

CME

Term

SOFR

at

4.22%

Floor

+

4.22%),

9.05%,

12/15/34

(a)(b)

...............

125

113,942

United

States

—

4.0%

1211

Avenue

of

the

Americas

Trust,

Series

2015-1211,

Class

A1A2,

3.90%,

08/10/35

(a)

...........

250

233,687

BANK,

Series

2022-BNK41,

Class

A4,

3.79%,

04/15/65

(b)

...........

80

72,397

Beast

Mortgage

Trust,

Series

2021-

SSCP,

Class

A,

(1-mo.

LIBOR

USD

at

0.75%

Floor

+

0.75%),

5.43%,

04/15/36

(a)(b)

...............

30

28,510

BX

Commercial

Mortgage

Trust

(a)(b)

Series

2020-VKNG,

Class

A,

(1-mo.

CME

Term

SOFR

at

1.04%

Floor

+

1.04%),

5.87%,

10/15/37

...

113

110,764

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

39

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Series

2021-SOAR,

Class

A,

(1-mo.

LIBOR

USD

at

0.67%

Floor

+

0.67%),

5.36%,

06/15/38

....

USD

59

$

56,752

Series

2022-LP2,

Class

A,

(1-mo.

CME

Term

SOFR

at

1.01%

Floor

+

1.01%),

5.84%,

02/15/39

...

56

53,626

BX

Trust,

Series

2022-IND,

Class

A,

(1-mo.

CME

Term

SOFR

at

1.49%

Floor

+

1.49%),

6.32%,

04/15/37

(a)(b)

56

54,734

Commercial

Mortgage

Trust,

Series

2013-300P,

Class

D,

4.39%,

08/10/30

(a)(b)

...............

25

21,250

Credit

Suisse

Mortgage

Capital

Certificates,

Series

2019-ICE4,

Class

A,

(1-mo.

LIBOR

USD

at

0.98%

Floor

+

0.98%),

5.66%,

05/15/36

(a)(b)

...............

60

59,245

DBGS

Mortgage

Trust,

Series

2018-

BIOD,

Class

A,

(1-mo.

LIBOR

USD

at

0.80%

Floor

+

0.80%),

5.49%,

05/15/35

(a)(b)

...............

55

53,859

Grace

Trust,

Series

2020-GRCE,

Class

D,

2.68%,

12/10/40

(a)(b)

........

250

171,918

GS

Mortgage

Securities

Corp.

Trust,

Series

2021-DM,

Class

F,

(1-mo.

LIBOR

USD

at

3.44%

Floor

+

3.44%),

8.12%,

11/15/36

(a)(b)

....

50

44,961

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

(a)(b)

Series

2021-MHC,

Class

D,

(1-mo.

LIBOR

USD

at

1.70%

Floor

+

1.70%),

6.38%,

04/15/38

....

250

234,941

Series

2022-OPO,

Class

D,

3.45%,

01/05/39

...............

80

58,633

SUMIT

Mortgage

Trust,

Series

2022-

BVUE,

Class

D,

2.89%,

02/12/41

(a)(b)

40

28,938

Velocity

Commercial

Capital

Loan

Trust,

Series

2021-4,

Class

M4,

4.48%,

12/26/51

(a)(b)

..........

465

341,204

Wells

Fargo

Commercial

Mortgage

Trust,

Series

2021-C60,

Class

A4,

2.34%,

08/15/54

............

80

64,921

1,690,340

1,804,282

Total

Non-Agency

Mortgage-Backed

Securities

—

4.7%

(Cost:

$2,258,274)

..............................

1,976,525

Preferred

Securities

Capital

Trusts

—

0.0%

United

States

—

0.0%

State

Street

Corp.,

Series

H

,

(3-mo.

LIBOR

USD

+

2.54%),

5.63%

(b)(e)(f)

27

25,184

Total

Capital

Trusts

—

0.0%  

(Cost:

$27,497)

................................

25,184

Security

Par

(000)

Pa

r

(

000)

Value

U.S.

Government

Sponsored

Agency

Securities

Commercial

Mortgage-Backed

Securities

—

0.1%

Federal

Home

Loan

Mortgage

Corp.

Variable

Rate

Notes,

Series

2018-

W5FX,

Class

CFX,

(1-mo.

LIBOR

USD

+

0.00%),

3.42%, 04/25/28

(a)(b)

USD

50

$

41,790

Mortgage-Backed

Securities

—

50.1%

Federal

National

Mortgage

Association,

3.00%, 12/01/50

............

680

616,788

Government

National

Mortgage

Association

2.00%

,

 08/20/50

-

11/20/50

...

113

96,646

2.50%

,

 10/20/51

-

12/20/51

...

186

163,406

3.00%

,

 03/20/52

..........

283

257,916

3.50%

,

 03/20/52

..........

60

57,058

4.00%

,

 03/20/52

..........

16

15,646

2.00%

,

 04/15/53

(g)

.........

510

432,972

2.50%

,

 04/15/53

(g)

.........

495

435,600

3.00%

,

 04/15/53

(g)

.........

198

180,076

3.50%

,

 04/15/53

(g)

.........

300

280,957

4.00%

,

 04/15/53

(g)

.........

1,989

1,914,405

4.50%

,

 04/15/53

(g)

.........

161

158,577

5.00%

,

 04/15/53

(g)

.........

92

92,115

5.50%

,

 04/15/53

(g)

.........

38

38,430

6.00%

,

 04/15/53

(g)

.........

36

36,671

Uniform

Mortgage-Backed

Securities

1.50%

,

 04/25/38

-

04/25/53

(g)

..

735

611,131

2.00%

,

 04/25/38

-

04/25/53

(g)

..

1,221

1,053,479

2.50%

,

 04/25/38

-

04/25/53

(g)

..

1,169

1,024,210

3.00%

,

 04/25/38

-

05/25/53

(g)

..

1,819

1,640,579

3.50%

,

 04/25/38

-

04/25/53

(g)

..

1,127

1,049,283

4.00%

,

 09/01/47

-

04/01/52

...

1,161

1,116,724

4.50%

,

 06/01/50

..........

250

248,745

2.50%

,

 09/01/50

-

12/01/51

...

2,986

2,585,445

2.00%

,

 10/01/51

-

11/01/51

...

2,786

2,307,462

3.00%

,

 11/01/51

..........

251

230,207

3.50%

,

 11/01/51

..........

943

899,970

6.00%

,

 01/01/53

-

03/01/53

...

354

367,286

4.50%

,

 04/25/53

(g)

.........

305

299,230

5.00%

,

 04/25/53

(g)

.........

1,356

1,351,900

5.50%

,

 04/25/53

(g)

.........

791

798,987

6.00%

,

 04/25/53

(g)

.........

745

760,293

21,122,194

Total

U.S.

Government

Sponsored

Agency

Securities

—

50.2%  

(Cost:

$22,062,938)

..............................

21,163,984

U.S.

Treasury

Obligations

U.S.

Treasury

Bonds

4.50%, 08/15/39

............

208

231,422

1.13%, 05/15/40

-

08/15/40

.....

412

273,240

4.38%, 05/15/40

............

104

113,692

1.38%, 11/15/40

............

206

141,891

1.75%, 08/15/41

............

206

149,157

2.75%, 11/15/47

............

298

247,922

3.00%, 02/15/48

-

08/15/52

.....

403

351,907

3.38%, 11/15/48

............

378

353,297

2.38%, 05/15/51

............

316

242,807

2.00%, 08/15/51

............

63

43,962

1.88%, 11/15/51

............

3

1,907

2.88%, 05/15/52

............

172

147,141

4.00%, 11/15/52

............

23

24,409

3.63%, 02/15/53

............

12

11,914

U.S.

Treasury

Inflation

Linked

Notes

,

1.63%, 10/15/27

............

853

869,683

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

40

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Security

Par

(000)

Par

(000)

Value

U.S.

Treasury

Obligations

(continued)

U.S.

Treasury

Notes

2.50%, 04/30/24

............

USD

997

$

975,035

4.38%, 10/31/24

............

44

44,052

0.75%, 11/15/24

............

42

39,705

2.63%, 04/15/25

............

208

202,522

2.75%, 05/15/25

-

08/15/32

.....

1,840

1,741,891

4.50%, 11/15/25

............

33

33,487

4.00%, 12/15/25

-

02/28/30

.....

1,419

1,452,882

0.88%, 09/30/26

............

92

83,317

1.13%, 10/31/26

............

58

52,900

1.25%, 11/30/26

-

08/15/31

.....

709

613,668

1.50%, 01/31/27

............

7

6,444

1.88%, 02/28/27

-

02/28/29

.....

28

26,028

0.63%, 03/31/27

............

189

167,560

0.50%, 04/30/27

-

08/31/27

.....

520

456,534

0.38%, 09/30/27

............

103

89,067

4.13%, 09/30/27

-

11/15/32

.....

95

98,898

3.50%, 01/31/28

-

02/15/33

.....

131

130,613

1.75%, 01/31/29

............

10

9,027

2.88%, 04/30/29

............

44

42,245

3.88%, 09/30/29

-

12/31/29

.....

1,200

1,219,934

1.63%, 05/15/31

............

206

179,035

Total

U.S.

Treasury

Obligations

—

25.8%

(Cost:

$11,341,219)

..............................

10,869,195

Total

Long-Term

Investments

—

123.7%

(Cost:

$55,303,373)

..............................

52,147,643

Shares

Shares

Short-Term

Securities

Money

Market

Funds

—

4.7%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

4.70%

(h)(

i

)

....

1,962,807

1,962,807

Total

Short-Term

Securities

—

4.7%

(Cost:

$1,962,807)

..............................

1,962,807

Total

Options

Purchased

—

0.3%

(Cost:

$135,966

)

................................

127,679

Total

Investments

Before

Options

Written

and

TBA

Sale

Commitments

—

128.7%

(Cost:

$57,402,146)

..............................

54,238,129

Total

Options

Written

—

(0.4)%

(Premiums

Received

—

$(196,950))

..................

(165,762)

Par

(000)

Pa

r

(

000)

TBA

Sale

Commitments

(g)

Government

National

Mortgage

Association,

2.50%, 04/15/53

....

(43)

(37,840)

Uniform

Mortgage-Backed

Securities

2.00%

,

 04/25/53

-

05/25/53

.....

(1,315)

(1,087,475)

2.50%

,

 04/25/53

-

05/25/53

.....

(1,394)

(1,201,527)

3.00%

,

 04/25/53

............

(243)

(217,821)

3.50%

,

 04/25/53

-

05/25/53

.....

(705)

(655,153)

4.00%

,

 04/25/53

............

(493)

(471,510)

4.50%

,

 04/25/53

............

(1,450)

(1,420,704)

5.00%

,

 04/25/53

............

(972)

(969,219)

5.50%

,

 04/25/53

............

(633)

(639,392)

Security

Par

(000)

Par

(000)

Value

TBA

Sale

Commitments

(g)

(continued)

6.00%

,

 04/25/53

............

USD

(645)

$

(658,226)

Total

TBA

Sale

Commitments

—

(17.5)%

(Proceeds:

$(7,314,260))

..........................

(7,358,867)

Total

Investments

Net

of

Options

Written

and

TBA

Sale

Commitments

—

110.8%

(Cost:

$49,890,936)

..............................

46,713,500

Liabilities

in

Excess

of

Other

Assets

—

(10.8)%

...........

(4,563,910)

Net

Assets

—

100.0%

..............................

$

42,149,590

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

41

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the six

months

ended

March

31,

2023

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

(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)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(d)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(e)

Perpetual

security

with

no

stated

maturity

date.

(f)

Non-income

producing

security.

(g)

Represents

or

includes

a

TBA

transaction.

(h)

Annualized

7-day

yield

as

of

period

end.

(i)

Affiliate

of

the

Fund.

Affiliated

Issuer

Value

at

09/30/22

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

03/31/23

Shares

Held

at

03/31/23

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

2,006,214

$

—

$

(43,407)

(a)

$

—

$

—

$

1,962,807

1,962,807

$

84,931

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

42

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

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

..............................................................

1

06/08/23

$

147

$

4,935

U.S.

Treasury

Long

Bond

.....................................................

7

06/21/23

920

7,240

U.S.

Treasury

Ultra

Bond

.....................................................

2

06/21/23

283

10,996

U.S.

Treasury

2

Year

Note

....................................................

5

06/30/23

1,033

717

U.S.

Treasury

5

Year

Note

....................................................

31

06/30/23

3,399

55,034

78,922

Short

Contracts

Euro-

Bobl

...............................................................

10

06/08/23

1,278

(29,389)

Euro-BTP

...............................................................

2

06/08/23

250

(8,314)

Euro-Schatz

.............................................................

1

06/08/23

115

(1,100)

Japan

10

Year

Bond

........................................................

1

06/13/23

1,116

(20,294)

U.S.

Treasury

10

Year

Note

...................................................

21

06/21/23

2,416

(46,420)

U.S.

Treasury

10

Year

Ultra

Note

...............................................

12

06/21/23

1,455

(33,261)

3-mo.

SOFR

.............................................................

1

03/19/24

239

143

(138,635)

$

(59,713)

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

USD

9,765

JPY

1,281,000

Deutsche

Bank

AG

06/21/23

$

4

USD

19,433

EUR

18,000

Morgan

Stanley

&

Co.

International

plc

06/21/23

(176)

USD

2,101,747

EUR

1,947,000

UBS

AG

06/21/23

(19,285)

(19,461)

$

(19,457)

Exchange-Traded

Options

Purchased

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

3-mo.

SOFR

Interest

Futures

....................

29

04/14/23

USD

95.81

USD

7,250

$

725

OTC

Currency

Options

Purchased

Description

Counterparty

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

EUR

Currency

...........................

Goldman

Sachs

International

06/29/23

USD

1.08

EUR

483

$

5,392

$

—

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

43

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

OTC

Dual

Binary

Options

Purchased

Description

(a)

Counterparty

Units

Expiration

Date

Notional

Amount

(000)

Value

Put

Payout

at

expiry

if

USDJPY

<

128.51

and

JPY

TONAR

10-Year

>

0.89

................

Citibank

NA

12,000

06/30/23

USD

1,542

$

1,200

(a)

Option

only

pays

if

both

terms

are

met

on

the

expiration

date.

OTC

Interest

Rate

Swaptions

Purchased

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.29%

Semi-Annual

Morgan

Stanley

&

Co.

International

plc

02/14/24

3.29

%

USD

565

$

25,242

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.31%

Semi-Annual

Bank

of

America

NA

02/15/24

3.31

USD

272

12,390

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.32%

Semi-Annual

Bank

of

America

NA

02/15/24

3.32

USD

281

13,019

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.00%

Semi-Annual

Morgan

Stanley

&

Co.

International

plc

03/28/24

3.00

USD

306

10,757

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.09%

Semi-Annual

Morgan

Stanley

&

Co.

International

plc

03/27/26

3.09

USD

27

1,481

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.08%

Semi-Annual

Bank

of

America

NA

03/30/26

3.08

USD

93

5,014

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.10%

Semi-Annual

Citibank

NA

03/30/26

3.10

USD

82

4,516

72,419

Put

10-Year

Interest

Rate

Swap

(a)

3.29%

Semi-Annual

1-day

SOFR

Annual

Morgan

Stanley

&

Co.

International

plc

02/14/24

3.29

USD

565

13,938

10-Year

Interest

Rate

Swap

(a)

3.32%

Semi-Annual

1-day

SOFR

Annual

Bank

of

America

NA

02/15/24

3.32

USD

281

6,674

10-Year

Interest

Rate

Swap

(a)

3.31%

Semi-Annual

1-day

SOFR

Annual

Bank

of

America

NA

02/15/24

3.31

USD

272

6,583

10-Year

Interest

Rate

Swap

(a)

3.00%

Semi-Annual

1-day

SOFR

Annual

Morgan

Stanley

&

Co.

International

plc

03/28/24

3.00

USD

306

10,756

10-Year

Interest

Rate

Swap

(a)

3.09%

Semi-Annual

1-day

SOFR

Annual

Morgan

Stanley

&

Co.

International

plc

03/27/26

3.09

USD

27

1,341

10-Year

Interest

Rate

Swap

(a)

3.08%

Semi-Annual

1-day

SOFR

Annual

Bank

of

America

NA

03/30/26

3.08

USD

93

4,615

10-Year

Interest

Rate

Swap

(a)

3.10%

Semi-Annual

1-day

SOFR

Annual

Citibank

NA

03/30/26

3.10

USD

82

4,036

47,943

$

120,362

(a)

Forward

settling

swaption.

Exchange-Traded

Options

Written

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

3-mo.

SOFR

Interest

Futures

.....................

39

04/14/23

USD

95.13

USD

9,750

$

(244)

OTC

Currency

Options

Written

Description

Counterparty

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

EUR

Currency

.............................

Goldman

Sachs

International

06/29/23

USD

1.02

EUR

483

$

(885)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

44

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

OTC

Interest

Rate

Swaptions

Written

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

10-Year

Interest

Rate

Swap

(a)

3.11%

Semi-Annual

1-day

SOFR

Annual

Morgan

Stanley

&

Co.

International

plc

12/19/23

3.11

%

USD

778

$

(25,211)

10-Year

Interest

Rate

Swap

(a)

3.16%

Semi-Annual

1-day

SOFR

Annual

Deutsche

Bank

AG

01/04/24

3.16

USD

243

(8,744)

10-Year

Interest

Rate

Swap

(a)

3.15%

Semi-Annual

1-day

SOFR

Annual

JPMorgan

Chase

Bank

NA

01/08/24

3.15

USD

243

(8,667)

10-Year

Interest

Rate

Swap

(a)

3.11%

Semi-Annual

1-day

SOFR

Annual

Morgan

Stanley

&

Co.

International

plc

01/10/24

3.11

USD

668

(22,578)

10-Year

Interest

Rate

Swap

(a)

2.95%

Semi-Annual

1-day

SOFR

Annual

Morgan

Stanley

&

Co.

International

plc

03/13/26

2.95

USD

45

(2,192)

10-Year

Interest

Rate

Swap

(a)

3.02%

Semi-Annual

1-day

SOFR

Annual

Goldman

Sachs

International

03/16/26

3.02

USD

107

(5,523)

10-Year

Interest

Rate

Swap

(a)

3.12%

Semi-Annual

1-day

SOFR

Annual

Goldman

Sachs

International

03/16/26

3.12

USD

94

(5,228)

10-Year

Interest

Rate

Swap

(a)

3.14%

Semi-Annual

1-day

SOFR

Annual

Goldman

Sachs

International

03/16/26

3.14

USD

124

(7,006)

10-Year

Interest

Rate

Swap

(a)

3.13%

Semi-Annual

1-day

SOFR

Annual

Bank

of

America

NA

03/23/26

3.13

USD

42

(2,358)

(87,507)

Put

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.11%

Semi-Annual

Morgan

Stanley

&

Co.

International

plc

12/19/23

3.11

USD

778

(22,946)

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.16%

Semi-Annual

Deutsche

Bank

AG

01/04/24

3.16

USD

243

(6,734)

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.15%

Semi-Annual

JPMorgan

Chase

Bank

NA

01/08/24

3.15

USD

243

(6,870)

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.11%

Semi-Annual

Morgan

Stanley

&

Co.

International

plc

01/10/24

3.11

USD

668

(20,113)

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

2.95%

Semi-Annual

Morgan

Stanley

&

Co.

International

plc

03/13/26

2.95

USD

45

(2,435)

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.02%

Semi-Annual

Goldman

Sachs

International

03/16/26

3.02

USD

107

(5,530)

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.12%

Semi-Annual

Goldman

Sachs

International

03/16/26

3.12

USD

94

(4,559)

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.14%

Semi-Annual

Goldman

Sachs

International

03/16/26

3.14

USD

124

(5,932)

10-Year

Interest

Rate

Swap

(a)

1-day

SOFR

Annual

3.13%

Semi-Annual

Bank

of

America

NA

03/23/26

3.13

USD

42

(2,007)

(77,126)

$

(164,633)

(a)

Forward

settling

swaption.

Centrally

Cleared

Interest

Rate

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

0.21%

Annual

1-day

TONAR

Annual

N/A

02/03/25

JPY

6,998

$

(95)

$

—

$

(95)

0.20%

Annual

1-day

TONAR

Annual

N/A

02/03/25

JPY

6,998

(90)

—

(90)

0.39%

Annual

1-day

TONAR

Annual

N/A

05/02/32

JPY

7,208

770

—

770

0.42%

Annual

1-day

TONAR

Annual

N/A

06/14/32

JPY

16,108

1,515

—

1,515

0.33%

Annual

1-day

TONAR

Annual

N/A

08/01/32

JPY

12,427

2,146

—

2,146

0.57%

Annual

1-day

TONAR

Annual

N/A

10/17/32

JPY

15,443

311

—

311

3.15%

Annual

1-day

SOFR

Annual

02/14/28

(a)

02/14/33

USD

11

(67)

—

(67)

1-day

ESTR

Annual

2.69%

Annual

02/15/28

(a)

02/15/33

EUR

10

6

—

6

3.46%

Annual

1-day

SOFR

Annual

N/A

02/15/33

USD

49

(1,017)

—

(1,017)

0.89%

Annual

1-day

TONAR

Annual

N/A

02/15/33

JPY

4,090

(758)

—

(758)

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

45

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Centrally

Cleared

Interest

Rate

Swaps

(continued)

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

0.90%

Annual

1-day

TONAR

Annual

N/A

02/15/33

JPY

4,090

$

(796)

$

—

$

(796)

0.90%

Annual

1-day

TONAR

Annual

N/A

02/15/33

JPY

8,179

(1,606)

—

(1,606)

0.92%

Annual

1-day

TONAR

Annual

N/A

02/15/33

JPY

11,846

(2,479)

—

(2,479)

3.49%

Annual

1-day

SOFR

Annual

N/A

02/17/33

USD

147

(3,500)

—

(3,500)

3.62%

Annual

1-day

SOFR

Annual

N/A

02/23/33

USD

98

(3,383)

—

(3,383)

3.28%

Annual

1-day

SOFR

Annual

02/24/28

(a)

02/24/33

USD

11

(122)

—

(122)

1-day

ESTR

Annual

2.95%

Annual

03/02/28

(a)

03/02/33

EUR

5

58

—

58

3.45%

Annual

1-day

SOFR

Annual

03/02/28

(a)

03/02/33

USD

5

(98)

—

(98)

3.35%

Annual

1-day

SOFR

Annual

03/03/28

(a)

03/03/33

USD

5

(73)

—

(73)

3.28%

Annual

1-day

SOFR

Annual

03/03/28

(a)

03/03/33

USD

5

(57)

—

(57)

3.78%

Annual

1-day

SOFR

Annual

N/A

03/06/33

USD

147

(7,235)

—

(7,235)

1-day

SOFR

Annual

3.11%

Annual

N/A

03/14/33

USD

98

(765)

39

(804)

1-day

SOFR

Annual

3.31%

Annual

N/A

03/15/33

USD

81

717

—

717

1-day

SOFR

Annual

3.31%

Annual

N/A

03/15/33

USD

66

599

—

599

1-day

SOFR

Annual

3.21%

Annual

N/A

03/17/33

USD

74

80

—

80

1-day

SOFR

Annual

3.22%

Annual

N/A

03/17/33

USD

74

99

—

99

3.35%

Annual

1-day

SOFR

Annual

N/A

03/20/33

USD

22

(282)

—

(282)

1-day

ESTR

Annual

2.74%

Annual

03/22/28

(a)

03/22/33

EUR

5

13

—

13

3.13%

Annual

1-day

SOFR

Annual

03/22/28

(a)

03/22/33

USD

5

(27)

—

(27)

3-mo.

BA

Semi-Annual

3.30%

Semi-Annual

N/A

03/27/33

CAD

3

(4)

—

(4)

3-mo.

BA

Semi-Annual

3.35%

Semi-Annual

N/A

03/30/33

CAD

6

12

(14)

26

2.37%

Annual

1-day

SOFR

Annual

02/03/43

(a)

02/03/53

USD

4

(1)

—

(1)

2.37%

Annual

1-day

SOFR

Annual

02/09/43

(a)

02/09/53

USD

4

(1)

—

(1)

2.47%

Annual

1-day

SOFR

Annual

02/10/43

(a)

02/10/53

USD

5

(26)

—

(26)

2.41%

Annual

1-day

SOFR

Annual

02/17/43

(a)

02/17/53

USD

5

(12)

—

(12)

3.37%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

03/27/53

CAD

1

2

—

2

3.40%

Semi-Annual

3-mo.

BA

Semi-Annual

N/A

03/30/53

CAD

3

(8)

8

(16)

$

(16,174)

$

33

$

(16,207)

(a)

Forward

swap.

OTC

Credit

Default

Swap

s

—

Buy

Protection

Reference

Obligation/Index

Financing

Rate

Paid

by

the

Fund

Payment

Frequency

Counterparty

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

Abbott

Laboratories

........

1.00

%

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

USD

17

$

(437)

$

(330)

$

(107)

$

–

$

–

$

–

OTC

Total

Return

Swaps

Paid

by

the

Fund

Received

by

the

Fund

Rate/Reference

Frequency

Rate/Reference

Frequency

Counterparty

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1-day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

Investment

Grade

Total

Return

Index

At

Termination

JPMorgan

Chase

Bank

NA

06/20/23

USD

317

$

3,466

$

(2,991)

$

6,457

1-day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

Investment

Grade

Total

Return

Index

At

Termination

JPMorgan

Chase

Bank

NA

06/20/23

USD

316

4,768

(2,981)

7,749

$

8,234

$

(5,972)

$

14,206

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

46

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1-day

ESTR

.........................................

Euro

Short-Term

Rate

993.30

%

1-day

SOFR

.........................................

Secured

Overnight

Financing

Rate

4.87

1-day

TONAR

........................................

Tokyo

Overnight

Average

Rate

(0.03)

3-mo.

BA

...........................................

Canadian

Bankers

Acceptances

5.06

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps,

OTC

Swaps

and

Options

Written

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

............................................

$

47

$

(14)

$

6,342

$

(22,549)

$

—

OTC

Swaps

.....................................................

—

(6,302)

14,206

(107)

—

Options

Written

...................................................

N/A

N/A

31,330

(142)

(165,762)

(a)

Includes

cumulative

appreciation

(depreciation)

on

centrally

cleared

swaps,

as

reported

in

the

Schedule

of

Investments.

Only

current

day’s

variation

margin

is

reported

within

the

Statements

of

Assets

and

Liabilities

and

is

net

of

any

previously

paid

(received)

swap

premium

amounts.

As

of

period

end,

the

fair

values

of

derivative

financial

instruments

located

in

the

Statements

of

Assets

and

Liabilities

were

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Assets

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

appreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

—

$

—

$

79,065

$

—

$

79,065

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

4

—

—

4

Options

purchased

(b)

Investments

at

value

—

unaffiliated

(c)

...........

—

—

—

5,392

121,087

1,200

127,679

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

6,342

—

6,342

Swaps

—

OTC

Unrealized

appreciation

on

OTC

swaps;

Swap

premiums

paid

................................

—

—

—

—

14,206

—

14,206

$

—

$

—

$

—

$

5,396

$

220,700

$

1,200

$

227,296

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

—

$

—

$

138,778

$

—

$

138,778

Forward

foreign

currency

exchange

contracts

Unrealized

depreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

19,461

—

—

19,461

Options

written

(b)

Options

written

at

value

.....................

—

—

—

885

164,877

—

165,762

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

22,549

—

22,549

Swaps

—

OTC

Unrealized

depreciation

on

OTC

swaps;

Swap

premiums

received

.............................

—

437

—

—

5,972

—

6,409

$

—

$

437

$

—

$

20,346

$

332,176

$

—

$

352,959

(a)

Net

cumulative

unrealized

appreciation

(depreciation)

on

futures

contracts

and

centrally

cleared

swaps,

if

any,

are

reported

in

the

Schedule

of

Investments.

In

the

Statements

of

Assets

and

Liabilities,

only

current

day’s

variation

margin

is

reported

in

receivables

or

payables

and

the

net

cumulative

unrealized

appreciation

(depreciation)

is

included

in

accumulated

earnings

(loss).

(b)

Includes

forward

settling

swaptions.

(c)

Includes

options

purchased

at

value

as

reported

in

the

Schedule

of

Investments.

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

47

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

For

the

period

ended

March

31,

2023,

the

effect

of

derivative

financial

instruments

in

the

Statements

of

Operations

was

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Net

Realized

Gain

(Loss)

from

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

164,620

$

—

$

164,620

Forward

foreign

currency

exchange

contracts

....

—

—

—

(194,046)

—

—

(194,046)

Options

purchased

(a)

....................

—

—

—

(15,729)

36,729

—

21,000

Options

written

........................

—

—

—

15,459

(170,880)

—

(155,421)

Swaps

..............................

—

(11,353)

—

—

36,815

3,166

28,628

$

—

$

(11,353)

$

—

$

(194,316)

$

67,284

$

3,166

$

(135,219)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

101,453

$

—

$

101,453

Forward

foreign

currency

exchange

contracts

....

—

—

—

(115,529)

—

—

(115,529)

Options

purchased

(b)

....................

—

—

—

(4,015)

(68,578)

—

(72,593)

Options

written

........................

—

—

—

2,714

177,741

—

180,455

Swaps

..............................

—

1,204

—

—

2,730

—

3,934

$

—

$

1,204

$

—

$

(116,830)

$

213,346

$

—

$

97,720

(a)

Options

purchased

are

included

in

net

realized

gain

(loss)

from

investments

—

unaffiliated.

(b)

Options

purchased

are

included

in

net

change

in

unrealized

appreciation

(depreciation)

on

investments

—

unaffiliated.

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

long

..................................................................................

$

11,212,644

Average

notional

value

of

contracts

—

short

.................................................................................

$

4,305,805

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

....................................................................................

$

2,107,827

Options

Average

value

of

option

contracts

purchased

................................................................................

$

3,659

Average

value

of

option

contracts

written

...................................................................................

$

565

Average

notional

value

of

swaption

contracts

purchased

.........................................................................

$

7,487,252

Average

notional

value

of

swaption

contracts

written

...........................................................................

$

14,171,311

Credit

default

swaps

Average

notional

value

—

buy

protection

...................................................................................

$

16,741

Interest

rate

swaps

Average

notional

value

—

pays

fixed

rate

...................................................................................

$

2,545,097

Average

notional

value

—

receives

fixed

rate

................................................................................

$

209,913

Inflation

swaps

Average

notional

value

—

pays

fixed

rate

...................................................................................

$

—

(a)

Average

notional

value

—

receives

fixed

rate

................................................................................

$

—

(a)

Total

return

swaps

Average

notional

value

...............................................................................................

$

316,500

(a)

Derivative

financial

instrument

not

held

at

any

quarter-end.

The

risk

exposure

table

serves

as

an

indicator

of

activity

during

the

period.

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

21,737

$

19,085

Forward

foreign

currency

exchange

contracts

.................................................................

4

19,461

Options

(a)(b)

........................................................................................

127,679

165,762

Swaps

—

centrally

cleared

..............................................................................

232

—

Swaps

—

OTC

(c)

.....................................................................................

14,206

6,409

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

............................................

$

163,858

$

210,717

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(22,694)

(19,329)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

141,164

$

191,388

2023

BlackRock

Semi-Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

48

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

Fair

Value

Hierarchy

as

of Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund's

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

(a)

Includes

options

purchased

at

value

which

is

included

in

Investments

at

value

–

unaffiliated

in

the

Statements

of

Assets

and

Liabilities

and

reported

in

the

Schedule

of

Investments.

(b)

Includes

forward

settling

swaptions.

(c)

Includes

unrealized

appreciation

(depreciation)

on

OTC

swaps

and

swap

premiums

paid/(received)

in

the

Statements

of

Assets

and

Liabilities.

The

following

tables

present

the

Fund's

derivative

assets

and

liabilities

by

counterparty

net

of

amounts

available

for

offset

under

an

MNA

and

net

of

the

related

collateral

received

and

pledged

by

the

Fund:

Counterparty

Derivative

Assets

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Received

Cash

Collateral

Received

Net

Amount

of

Derivative

Assets

(b)(c)

Bank

of

America

NA

..............................

$

48,295

$

(4,365)

$

—

$

—

$

43,930

Citibank

NA

....................................

9,752

—

—

—

9,752

Deutsche

Bank

AG

...............................

4

(4)

—

—

—

Goldman

Sachs

International

........................

5,392

(5,392)

—

—

—

JPMorgan

Chase

Bank

NA

..........................

14,206

(14,206)

—

—

—

Morgan

Stanley

&

Co.

International

plc

..................

63,515

(63,515)

—

—

—

$

141,164

$

(87,482)

$

—

$

—

$

53,682

Counterparty

Derivative

Liabilities

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Pledged

Cash

Collateral

Pledged

Net

Amount

of

Derivative

Liabilities

(c)(d)

Bank

of

America

NA

..............................

$

4,365

$

(4,365)

$

—

$

—

$

—

Deutsche

Bank

AG

...............................

15,478

(4)

—

—

15,474

Goldman

Sachs

International

........................

34,663

(5,392)

—

—

29,271

JPMorgan

Chase

Bank

NA

..........................

21,946

(14,206)

—

—

7,740

Morgan

Stanley

&

Co.

International

plc

..................

95,651

(63,515)

—

—

32,136

UBS

AG

......................................

19,285

—

—

—

19,285

$

191,388

$

(87,482)

$

—

$

—

$

103,906

(a)

The

amount

of

derivatives

available

for

offset

is

limited

to

the

amount

of

derivative

assets

and/or

liabilities

that

are

subject

to

an

MNA.

(b)

Net

amount

represents

the

net

amount

receivable

from

the

counterparty

in

the

event

of

default.

(c)

Net

amount

may

also

include

forward

foreign

currency

exchange

contracts

that

are

not

required

to

be

collateralized.

(d)

Net

amount

represents

the

net

amount

payable

due

to

the

counterparty

in

the

event

of

default.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

...................................

$

—

$

5,474,278

$

—

$

5,474,278

Corporate

Bonds

........................................

—

11,978,673

—

11,978,673

Foreign

Government

Obligations

..............................

—

409,517

—

409,517

Municipal

Bonds

.........................................

—

250,287

—

250,287

Non-Agency

Mortgage-Backed

Securities

........................

—

1,976,525

—

1,976,525

Preferred

Securities

.......................................

—

25,184

—

25,184

U.S.

Government

Sponsored

Agency

Securities

....................

—

21,163,984

—

21,163,984

U.S.

Treasury

Obligations

...................................

—

10,869,195

—

10,869,195

Short-Term

Securities

Money

Market

Funds

......................................

1,962,807

—

—

1,962,807

Options

Purchased

Foreign

currency

exchange

contracts

...........................

—

5,392

—

5,392

Interest

rate

contracts

......................................

725

120,362

—

121,087

Other

contracts

..........................................

—

1,200

—

1,200

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

49

Schedule

of

Investments

(unaudited)

(continued)

March

31,

2023

See

notes

to

financial

statements.

Level

1

Level

2

Level

3

Total

Liabilities

Investments

TBA

Sale

Commitments

....................................

$

—

$

(7,358,867)

$

—

$

(7,358,867)

$

1,963,532

$

44,915,730

$

—

$

46,879,262

Derivative

Financial

Instruments

(a)

Assets

Foreign

currency

exchange

contracts

............................

$

—

$

4

$

—

$

4

Interest

rate

contracts

.......................................

79,065

20,548

—

99,613

Liabilities

Credit

contracts

...........................................

—

(107)

—

(107)

Foreign

currency

exchange

contracts

............................

—

(20,346)

—

(20,346)

Interest

rate

contracts

.......................................

(139,022)

(187,182)

—

(326,204)

$

(59,957)

$

(187,083)

$

—

$

(247,040)

(a)

Derivative

financial

instruments

are

swaps,

futures

contracts,

forward

foreign

currency

exchange

contracts

and

options

written.

Swaps,

futures

contracts

and

forward

foreign

currency

exchange

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

Fair

Value

Hierarchy

as

of Period

End

(continued)

Statements

of

Assets

and

Liabilities

(unaudited)

March

31,

2023

2023

BlackRock

Semi-Annual

Report

to

Shareholders

50

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

BlackRock

Sustainable

Total

Return

Fund

ASSETS

Investments,

at

value

—

unaffiliated

(a)

..........................................................

$

42,080,586‌

$

46,255,849‌

$

52,275,322‌

Investments,

at

value

—

affiliated

(b)

............................................................

674,502‌

558,511‌

1,962,807‌

Cash  

...............................................................................

45,809‌

11,825‌

—‌

Cash

pledged:

Futures

contracts

......................................................................

28,000‌

220,000‌

105,000‌

Centrally

cleared

swaps

..................................................................

—‌

162,000‌

27,000‌

Foreign

currency,

at

value

(c)

.................................................................

—‌

30,068‌

44,058‌

Receivables:

–‌

–‌

–‌

Investments

sold

......................................................................

36,689‌

944,019‌

304,510‌

TBA

sale

commitments

..................................................................

—‌

997,789‌

7,314,260‌

Dividends

—

affiliated

...................................................................

3,467‌

1,737‌

11,119‌

Interest

—

unaffiliated

...................................................................

573,118‌

263,870‌

273,527‌

From

the

Manager

.....................................................................

28,989‌

14,336‌

29,034‌

Variation

margin

on

futures

contracts

.........................................................

—‌

—‌

21,737‌

Variation

margin

on

centrally

cleared

swaps

....................................................

—‌

—‌

232‌

Unrealized

appreciation

on:

–‌

–‌

–‌

Forward

foreign

currency

exchange

contracts

...................................................

—‌

—‌

4‌

OTC

swaps

..........................................................................

—‌

—‌

14,206‌

Prepaid

expenses

.......................................................................

29,241‌

33,875‌

47,098‌

Total

assets

...........................................................................

43,500,401‌

49,493,879‌

62,429,914‌

LIABILITIES

Bank

overdraft

..........................................................................

—‌

—‌

1,064‌

Options

written,

at

value

(d)

..................................................................

1,672‌

—‌

165,762‌

TBA

sale

commitments,

at

value

(e)

............................................................

—‌

1,003,556‌

7,358,867‌

Payables:

–‌

–‌

–‌

Investments

purchased

..................................................................

101,025‌

2,071,508‌

12,489,802‌

Accounting

services

fees

.................................................................

24,750‌

13,460‌

19,839‌

Administration

fees

.....................................................................

—‌

1‌

3‌

Custodian

fees

........................................................................

3,751‌

6,233‌

4,267‌

Income

dividend

distributions

..............................................................

213,858‌

134,001‌

129,623‌

Printing

and

postage

fees

................................................................

34,365‌

1,821‌

645‌

Professional

fees

......................................................................

121,775‌

31,096‌

57,806‌

Registration

fees

......................................................................

589‌

—‌

—‌

Service

fees

.........................................................................

18‌

22‌

19‌

Transfer

agent

fees

....................................................................

616‌

—‌

506‌

Other

accrued

expenses

.................................................................

—‌

4,350‌

7,166‌

Variation

margin

on

futures

contracts

.........................................................

6,363‌

7,037‌

19,085‌

Variation

margin

on

centrally

cleared

swaps

....................................................

—‌

25,118‌

—‌

Swap

premiums

received

..................................................................

—‌

—‌

6,302‌

Unrealized

depreciation

on:

–‌

–‌

–‌

Forward

foreign

currency

exchange

contracts

...................................................

—‌

25,864‌

19,461‌

OTC

swaps

..........................................................................

—‌

—‌

107‌

Total

liabilities

..........................................................................

508,782‌

3,324,067‌

20,280,324‌

NET

ASSETS

..........................................................................

$

42,991,619‌

$

46,169,812‌

$

42,149,590‌

Statements

of

Assets

and

Liabilities

(unaudited)

(continued)

March

31,

2023

51

Financial

Statements

See

notes

to

financial

statements.

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

BlackRock

Sustainable

Total

Return

Fund

NET

ASSETS

CONSIST

OF:

Paid-in

capital

..........................................................................

$

49,918,867‌

$

49,949,569‌

$

49,945,408‌

Accumulated

loss

.......................................................................

(6,927,248‌)

(3,779,757‌)

(7,795,818‌)

NET

ASSETS

..........................................................................

$

42,991,619‌

$

46,169,812‌

$

42,149,590‌

(a)

  Investments,

at

cost

—

unaffiliated

..........................................................

$

45,774,675‌

$

47,937,034‌

$

55,439,339‌

(b)

  Investments,

at

cost

—

affiliated

............................................................

$

674,502‌

$

558,511‌

$

1,962,807‌

(c)

  Foreign

currency,

at

cost

.................................................................

$

—‌

$

30,250‌

$

43,785‌

(d)

  Premiums

received

....................................................................

$

9,699‌

$

—‌

$

196,950‌

(e)

  Proceeds

received

from

TBA

sale

commitments

.................................................

$

—‌

$

997,789‌

$

7,314,260‌

Statements

of

Assets

and

Liabilities

(unaudited)

(continued)

March

31,

2023

2023

BlackRock

Semi-Annual

Report

to

Shareholders

52

See

notes

to

financial

statements.

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

BlackRock

Sustainable

Total

Return

Fund

NET

ASSET

VALUE

Institutional

Net

assets

............................................................................

$

88,241‌

$

92,297‌

$

84,278‌

Shares

outstanding

.....................................................................

10,264‌

10,000‌

10,000‌

Net

asset

value

........................................................................

$

8.60‌

$

9.23‌

$

8.43‌

Shares

authorized

......................................................................

Unlimited

Unlimited

500

million

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.10‌

Investor

A

Net

assets

............................................................................

$

88,525‌

$

110,414‌

$

94,624‌

Shares

outstanding

.....................................................................

10,297‌

11,963‌

11,228‌

Net

asset

value

........................................................................

$

8.60‌

$

9.23‌

$

8.43‌

Shares

authorized

......................................................................

Unlimited

Unlimited

300

million

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.10‌

Class

K

Net

assets

............................................................................

$

42,814,853‌

$

45,967,101‌

$

41,970,688‌

Shares

outstanding

.....................................................................

4,980,000‌

4,980,330‌

4,980,000‌

Net

asset

value

........................................................................

$

8.60‌

$

9.23‌

$

8.43‌

Shares

authorized

......................................................................

Unlimited

Unlimited

500

million

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.10‌

Statements

of

Operations

(unaudited)

Six

Months

Ended

March

31,

2023

53

Financial

Statements

See

notes

to

financial

statements.

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

BlackRock

Sustainable

Total

Return

Fund

INVESTMENT

INCOME

–

–

–

Dividends

—

unaffiliated

.................................................................

$

528‌

$

—‌

$

—‌

Dividends

—

affiliated

...................................................................

23,322‌

15,809‌

84,931‌

Interest

—

unaffiliated

...................................................................

1,232,635‌

805,532‌

707,804‌

Total

investment

income

...................................................................

1,256,485‌

821,341‌

792,735‌

EXPENSES

Investment

advisory

....................................................................

105,689‌

71,228‌

80,860‌

Professional

.........................................................................

90,907‌

46,115‌

63,321‌

Accounting

services

....................................................................

46,236‌

26,229‌

50,512‌

Printing

and

postage

...................................................................

35,247‌

1,416‌

2,638‌

Registration

.........................................................................

31,982‌

29,638‌

35,808‌

Administration

.......................................................................

8,983‌

9,765‌

8,812‌

Custodian

...........................................................................

6,705‌

2,209‌

8,176‌

Administration

—

class

specific

............................................................

4,228‌

4,595‌

4,147‌

Directors

and

Officer

...................................................................

808‌

848‌

916‌

Service

—

class

specific

.................................................................

109‌

137‌

116‌

Transfer

agent

—

class

specific

............................................................

87‌

83‌

80‌

Offering

............................................................................

—‌

6,673‌

8,992‌

Miscellaneous

........................................................................

2,883‌

6,434‌

13,876‌

Total

expenses

.........................................................................

333,864‌

205,370‌

278,254‌

Less:

–‌

–‌

–‌

Administration

fees

waived

...............................................................

(8,983‌)

(9,765‌)

(8,812‌)

Administration

fees

waived

by

the

Manager

—

class

specific

.........................................

(4,218‌)

(4,583‌)

(4,133‌)

Fees

waived

and/or

reimbursed

by

the

Manager

.................................................

(207,889‌)

(110,371‌)

(184,239‌)

Transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific

............................

(68‌)

(59‌)

(60‌)

Total

expenses

after

fees

waived

and/or

reimbursed

................................................

112,706‌

80,592‌

81,010‌

Net

investment

income

....................................................................

1,143,779‌

740,749‌

711,725‌

REALIZED

AND

UNREALIZED

GAIN

(LOSS)

$

2,135,918‌

$

626,013‌

$

1,582,984‌

Net

realized

gain

(loss)

from:

Investments

—

unaffiliated

.............................................................

$

(1,305,716‌)

$

(1,145,346‌)

$

(1,343,857‌)

Forward

foreign

currency

exchange

contracts

.................................................

—‌

(235,998‌)

(194,046‌)

Foreign

currency

transactions

...........................................................

—‌

(14,555‌)

(10,749‌)

Futures

contracts

....................................................................

22,297‌

(38,431‌)

164,620‌

Options

written

.....................................................................

12,837‌

—‌

(155,421‌)

Swaps  

..........................................................................

—‌

(45,664‌)

28,628‌

(1,270,582‌)

(1,479,994‌)

(1,510,825‌)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments

—

unaffiliated

.............................................................

3,436,918‌

2,352,566‌

2,922,825‌

Forward

foreign

currency

exchange

contracts

.................................................

—‌

(107,864‌)

(115,529‌)

Foreign

currency

translations

............................................................

—‌

116‌

671‌

Futures

contracts

....................................................................

(38,445‌)

(59,327‌)

101,453‌

Options

written

.....................................................................

8,027‌

—‌

180,455‌

Swaps  

..........................................................................

—‌

(79,484‌)

3,934‌

3,406,500‌

2,106,007‌

3,093,809‌

Net

realized

and

unrealized

gain

.............................................................

2,135,918‌

626,013‌

1,582,984‌

NET

INCREASE

IN

NET

ASSETS

RESULTING

FROM

OPERATIONS

....................................

$

3,279,697‌

$

1,366,762‌

$

2,294,709‌

Statements

of

Changes

in

Net

Assets

2023

BlackRock

Semi-Annual

Report

to

Shareholders

54

See

notes

to

financial

statements.

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

Six

Months

Ended

03/31/23

(unaudited)

Year

Ended

09/30/22

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

....................................................

$

1,143,779‌

$

1,844,109‌

$

740,749‌

$

588,548‌

Net

realized

gain

(loss)

....................................................

(1,270,582‌)

(1,686,978‌)

(1,479,994‌)

217,270‌

Net

change

in

unrealized

appreciation

(depreciation)

................................

3,406,500‌

(6,898,321‌)

2,106,007‌

(3,882,106‌)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

...........................

3,279,697‌

(6,741,190‌)

1,366,762‌

(3,076,288‌)

DISTRIBUTIONS

TO

SHAREHOLDERS

(b)

  Institutional

...........................................................

(2,461‌)

(4,082‌)

(2,939‌)

(1,298‌)

  Investor

A

............................................................

(2,370‌)

(3,877‌)

(3,363‌)

(1,738‌)

  Class

K

..............................................................

(1,206,475‌)

(2,040,030‌)

(1,471,118‌)

(664,697‌)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

.........................

(1,211,306‌)

(2,047,989‌)

(1,477,420‌)

(667,733‌)

CAPITAL

SHARE

TRANSACTIONS

Net

increase

in

net

assets

derived

from

capital

share

transactions

.........................

721‌

4,263‌

3,549‌

50,020,942‌

NET

ASSETS

Total

increase

(decrease)

in

net

assets

...........................................

2,069,112‌

(8,784,916‌)

(107,109‌)

46,276,921‌

Beginning

of

period

........................................................

40,922,507‌

49,707,423‌

46,276,921‌

—

End

of

period

............................................................

$

42,991,619‌

$

40,922,507‌

$

46,169,812‌

$

46,276,921‌

(a)

Commencement

of

operations.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Statements

of

Changes

in

Net

Assets

(continued)

55

Financial

Statements

See

notes

to

financial

statements.

BlackRock

Sustainable

Total

Return

Fund

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

..................................................................................

$

711,725‌

$

810,640‌

Net

realized

loss

......................................................................................

(1,510,825‌)

(2,450,609‌)

Net

change

in

unrealized

appreciation

(depreciation)

..............................................................

3,093,809‌

(6,354,000‌)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.........................................................

2,294,709‌

(7,993,969‌)

DISTRIBUTIONS

TO

SHAREHOLDERS

(b)

  Institutional

.........................................................................................

(2,590‌)

(1,685‌)

  Investor

A

..........................................................................................

(2,782‌)

(1,566‌)

  Class

K

............................................................................................

(1,296,787‌)

(857,656‌)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

.......................................................

(1,302,159‌)

(860,907‌)

CAPITAL

SHARE

TRANSACTIONS

Net

increase

in

net

assets

derived

from

capital

share

transactions

.......................................................

302‌

50,011,614‌

NET

ASSETS

Total

increase

in

net

assets

.................................................................................

992,852‌

41,156,738‌

Beginning

of

period

......................................................................................

41,156,738‌

—‌

End

of

period

..........................................................................................

$

42,149,590‌

$

41,156,738‌

(a)

Commencement

of

operations.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

56

BlackRock

Sustainable

High

Yield

Bond

Fund

Institutional

Six

Months

Ended

03/31/23

(unaudited)

Year

Ended

09/30/22

Period

from

07/22/21

(a)

to

09/30/21

Net

asset

value,

beginning

of

period

.........................................................

$

8.18

‌

$

9.94

‌

$

10.00

‌

Net

investment

income

(b)

.................................................................

0.23

‌

0.37

‌

0.05

‌

Net

realized

and

unrealized

gain

(loss)

........................................................

0.43

‌

(1.72

)

(0.05

)

Net

increase

(decrease)

from

investment

operations

................................................

0.66

‌

(1.35

)

0.00

‌

Distributions

from

net

investment

income

(c)

....................................................

(0.24

)

(0.41

)

(0.06

)

Net

asset

value,

end

of

period

..............................................................

$

8.60

‌

$

8.18

‌

$

9.94

‌

Total

Return

(d)

—

—

—

Based

on

net

asset

value

..................................................................

8.15

%

(e)

(13.97

)%

0.01

%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.........................................................................

1.60

%

(g)

1.75

%

1.32

%

(g)(h)

Total

expenses

after

fees

waived

and/or

reimbursed

................................................

0.57

%

(g)

0.57

%

0.58

%

(g)

Net

investment

income

...................................................................

5.38

%

(g)

3.96

%

2.80

%

(g)

Supplemental

Data

Net

assets,

end

of

period

(000)

..............................................................

$

88

‌

$

83

‌

$

99

‌

Portfolio

turnover

rate

.....................................................................

18

%

47

%

10

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Annualized.

(h)

Audit,

offering

and

organization

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

would

have

been

2.40%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

57

Financial

Highlights

BlackRock

Sustainable

High

Yield

Bond

Fund

Investor

A

Six

Months

Ended

03/31/23

(unaudited)

Year

Ended

09/30/22

Period

from

07/22/21

(a)

to

09/30/21

Net

asset

value,

beginning

of

period

.........................................................

$

8.18

‌

$

9.94

‌

$

10.00

‌

Net

investment

income

(b)

.................................................................

0.22

‌

0.34

‌

0.05

‌

Net

realized

and

unrealized

gain

(loss)

........................................................

0.43

‌

(1.72

)

(0.05

)

Net

increase

(decrease)

from

investment

operations

................................................

0.65

‌

(1.38

)

0.00

‌

Distributions

from

net

investment

income

(c)

....................................................

(0.23

)

(0.38

)

(0.06

)

Net

asset

value,

end

of

period

..............................................................

$

8.60

‌

$

8.18

‌

$

9.94

‌

Total

Return

(d)

—

—

—

Based

on

net

asset

value

..................................................................

8.01

%

(e)

(14.18

)%

(0.03

)%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.........................................................................

1.86

%

(g)

2.00

%

1.58

%

(g)(h)

Total

expenses

after

fees

waived

and/or

reimbursed

................................................

0.82

%

(g)

0.82

%

0.83

%

(g)

Net

investment

income

...................................................................

5.13

%

(g)

3.71

%

2.55

%

(g)

Supplemental

Data

Net

assets,

end

of

period

(000)

..............................................................

$

89

‌

$

84

‌

$

99

‌

Portfolio

turnover

rate

.....................................................................

18

%

47

%

10

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Annualized.

(h)

Audit,

offering

and

organization

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

would

have

been

2.65%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

58

BlackRock

Sustainable

High

Yield

Bond

Fund

Class

K

Six

Months

Ended

03/31/23

(unaudited)

Year

Ended

09/30/22

Period

from

07/22/21

(a)

to

09/30/21

Net

asset

value,

beginning

of

period

.........................................................

$

8.18

‌

$

9.94

‌

$

10.00

‌

Net

investment

income

(b)

.................................................................

0.23

‌

0.37

‌

0.05

‌

Net

realized

and

unrealized

gain

(loss)

........................................................

0.43

‌

(1.72

)

(0.05

)

Net

increase

(decrease)

from

investment

operations

................................................

0.66

‌

(1.35

)

0.00

‌

Distributions

from

net

investment

income

(c)

....................................................

(0.24

)

(0.41

)

(0.06

)

Net

asset

value,

end

of

period

..............................................................

$

8.60

‌

$

8.18

‌

$

9.94

‌

Total

Return

(d)

—

—

—

Based

on

net

asset

value

..................................................................

8.17

%

(e)

(13.93

)%

0.02

%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.........................................................................

1.58

%

(g)

1.46

%

0.96

%

(g)(h)

Total

expenses

after

fees

waived

and/or

reimbursed

................................................

0.53

%

(g)

0.53

%

0.53

%

(g)

Net

investment

income

...................................................................

5.41

%

(g)

4.00

%

2.85

%

(g)

Supplemental

Data

Net

assets,

end

of

period

(000)

..............................................................

$

42,815

‌

$

40,755

‌

$

49,509

‌

Portfolio

turnover

rate

.....................................................................

18

%

47

%

10

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Annualized.

(h)

Audit,

offering

and

organization

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

would

have

been

2.04%.

See

notes

to

financial

statements.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

59

Financial

Highlights

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Offering

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

0.91%

and

0.38%,

respectively.

(h)

Annualized.

(i)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.34%

and

0.39%,

respectively.

(j)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Sustainable

Low

Duration

Bond

Fund

Institutional

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

.......................................................................

$

9.25

‌

$

10.00

‌

Net

investment

income

(b)

...............................................................................

0.15

‌

0.11

‌

Net

realized

and

unrealized

gain

(loss)

......................................................................

0.12

‌

(0.73

)

Net

increase

(decrease)

from

investment

operations

..............................................................

0.27

‌

(0.62

)

Distributions

from

net

investment

income

(c)

..................................................................

(0.29

)

(0.13

)

Net

asset

value,

end

of

period

............................................................................

$

9.23

‌

$

9.25

‌

Total

Return

(d)

—

—

Based

on

net

asset

value

................................................................................

3.01

%

(e)

(6.24

)%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.......................................................................................

0.90

%

(g)(h)

1.31

%

(h)(i)

Total

expenses

after

fees

waived

and/or

reimbursed

..............................................................

0.37

%

(g)

(h)

0.37

%

(h)

(i)

Net

investment

income

.................................................................................

3.19

%

(h)

1.24

%

(h)

Supplemental

Data

Net

assets,

end

of

period

(000)

............................................................................

$

92

‌

$

93

‌

Portfolio

turnover

rate

(j)

..................................................................................

108

%

178

%

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Portfolio

turnover

rate

(excluding

MDRs)

..............................................................................

96%

167%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

60

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Offering

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.17%

and

0.64%,

respectively.

(h)

Annualized.

(i)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.50%

and

0.64%,

respectively.

(j)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Sustainable

Low

Duration

Bond

Fund

Investor

A

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

.......................................................................

$

9.25

‌

$

10.00

‌

Net

investment

income

(b)

...............................................................................

0.13

‌

0.10

‌

Net

realized

and

unrealized

gain

(loss)

......................................................................

0.13

‌

(0.74

)

Net

increase

(decrease)

from

investment

operations

..............................................................

0.26

‌

(0.64

)

Distributions

from

net

investment

income

(c)

..................................................................

(0.28

)

(0.11

)

Net

asset

value,

end

of

period

............................................................................

$

9.23

‌

$

9.25

‌

Total

Return

(d)

—

—

Based

on

net

asset

value

................................................................................

2.88

%

(e)

(6.46

)%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.......................................................................................

1.16

%

(g)(h)

1.48

%

(h)(i)

Total

expenses

after

fees

waived

and/or

reimbursed

..............................................................

0.63

%

(g)

(h)

0.62

%

(h)

(i)

Net

investment

income

.................................................................................

2.94

%

(h)

1.08

%

(h)

Supplemental

Data

Net

assets,

end

of

period

(000)

............................................................................

$

110

‌

$

110

‌

Portfolio

turnover

rate

(j)

..................................................................................

108

%

178

%

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Portfolio

turnover

rate

(excluding

MDRs)

..............................................................................

96%

167%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

61

Financial

Highlights

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Offering

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

0.89%

and

0.35%,

respectively.

(h)

Annualized.

(i)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.07%

and

0.35%,

respectively.

(j)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Sustainable

Low

Duration

Bond

Fund

Class

K

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

.......................................................................

$

9.25

‌

$

10.00

‌

Net

investment

income

(b)

...............................................................................

0.15

‌

0.12

‌

Net

realized

and

unrealized

gain

(loss)

......................................................................

0.13

‌

(0.74

)

Net

increase

(decrease)

from

investment

operations

..............................................................

0.28

‌

(0.62

)

Distributions

from

net

investment

income

(c)

..................................................................

(0.30

)

(0.13

)

Net

asset

value,

end

of

period

............................................................................

$

9.23

‌

$

9.25

‌

Total

Return

(d)

—

—

Based

on

net

asset

value

................................................................................

3.03

%

(e)

(6.20

)%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.......................................................................................

0.88

%

(g)(h)

1.04

%

(h)(i)

Total

expenses

after

fees

waived

and/or

reimbursed

..............................................................

0.34

%

(g)

(h)

0.33

%

(h)

(i)

Net

investment

income

.................................................................................

3.22

%

(h)

1.28

%

(h)

Supplemental

Data

Net

assets,

end

of

period

(000)

............................................................................

$

45,967

‌

$

46,074

‌

Portfolio

turnover

rate

(j)

..................................................................................

108

%

178

%

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Portfolio

turnover

rate

(excluding

MDRs)

..............................................................................

96%

167%

See

notes

to

financial

statements.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

62

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(g)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(h)

Offering

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.37%

and

0.42%,

respectively.

(i)

Annualized.

(j)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.61%

and

0.43%,

respectively.

(k)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Sustainable

Total

Return

Fund

Institutional

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

.......................................................................

$

8.23

‌

$

10.00

‌

Net

investment

income

(b)

...............................................................................

0.14

‌

0.16

‌

Net

realized

and

unrealized

gain

(loss)

......................................................................

0.32

‌

(1.76

)

Net

increase

(decrease)

from

investment

operations

..............................................................

0.46

‌

(1.60

)

Distributions

from

net

investment

income

(c)

..................................................................

(0.26

)

(0.17

)

Net

asset

value,

end

of

period

............................................................................

$

8.43

‌

$

8.23

‌

Total

Return

(d)

—

—

Based

on

net

asset

value

................................................................................

5.65

%

(e)

(16.16

)%

(e)(f)

Ratios

to

Average

Net

Assets

(g)

Total

expenses

.......................................................................................

1.35

%

(h)(i)

1.58

%

(i)(j)

Total

expenses

after

fees

waived

and/or

reimbursed

..............................................................

0.40

%

(h)

(i)

0.40

%

(i)

(j)

Net

investment

income

.................................................................................

3.40

%

(i)

1.80

%

(i)

Supplemental

Data

Net

assets,

end

of

period

(000)

............................................................................

$

84

‌

$

82

‌

Portfolio

turnover

rate

(k)

..................................................................................

295

%

604

%

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Portfolio

turnover

rate

(excluding

MDRs)

..............................................................................

182%

360%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

63

Financial

Highlights

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(g)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(h)

Offering

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.61%

and

0.68%,

respectively.

(i)

Annualized.

(j)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.84%

and

0.73%,

respectively.

(k)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Sustainable

Total

Return

Fund

Investor

A

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

.......................................................................

$

8.23

‌

$

10.00

‌

Net

investment

income

(b)

...............................................................................

0.13

‌

0.13

‌

Net

realized

and

unrealized

gain

(loss)

......................................................................

0.32

‌

(1.76

)

Net

increase

(decrease)

from

investment

operations

..............................................................

0.45

‌

(1.63

)

Distributions

from

net

investment

income

(c)

..................................................................

(0.25

)

(0.14

)

Net

asset

value,

end

of

period

............................................................................

$

8.43

‌

$

8.23

‌

Total

Return

(d)

—

—

Based

on

net

asset

value

................................................................................

5.52

%

(e)

(16.38

)%

(e)(f)

Ratios

to

Average

Net

Assets

(g)

Total

expenses

.......................................................................................

1.59

%

(h)(i)

1.81

%

(i)(j)

Total

expenses

after

fees

waived

and/or

reimbursed

..............................................................

0.66

%

(h)

(i)

0.70

%

(i)

(j)

Net

investment

income

.................................................................................

3.14

%

(i)

1.53

%

(i)

Supplemental

Data

Net

assets,

end

of

period

(000)

............................................................................

$

95

‌

$

92

‌

Portfolio

turnover

rate

(k)

..................................................................................

295

%

604

%

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Portfolio

turnover

rate

(excluding

MDRs)

..............................................................................

182%

360%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

64

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(g)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(h)

Offering

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.34%

and

0.39%,

respectively.

(i)

Annualized.

(j)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.33%

and

0.39%,

respectively.

(k)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Sustainable

Total

Return

Fund

Class

K

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

.......................................................................

$

8.23

‌

$

10.00

‌

Net

investment

income

(b)

...............................................................................

0.14

‌

0.16

‌

Net

realized

and

unrealized

gain

(loss)

......................................................................

0.32

‌

(1.76

)

Net

increase

(decrease)

from

investment

operations

..............................................................

0.46

‌

(1.60

)

Distributions

from

net

investment

income

(c)

..................................................................

(0.26

)

(0.17

)

Net

asset

value,

end

of

period

............................................................................

$

8.43

‌

$

8.23

‌

Total

Return

(d)

—

—

Based

on

net

asset

value

................................................................................

5.67

%

(e)

(16.12

)%

(e)(f)

Ratios

to

Average

Net

Assets

(g)

Total

expenses

.......................................................................................

1.32

%

(h)(i)

1.30

%

(i)(j)

Total

expenses

after

fees

waived

and/or

reimbursed

..............................................................

0.37

%

(h)

(i)

0.36

%

(i)

(j)

Net

investment

income

.................................................................................

3.43

%

(i)

1.84

%

(i)

Supplemental

Data

Net

assets,

end

of

period

(000)

............................................................................

$

41,971

‌

$

40,982

‌

Portfolio

turnover

rate

(k)

..................................................................................

295

%

604

%

Six

Months

Ended

03/31/23

(unaudited)

Period

from

10/18/21

(a)

to

09/30/22

Portfolio

turnover

rate

(excluding

MDRs)

..............................................................................

182%

360%

See

notes

to

financial

statements.

Notes

to

Financial

Statements

(unaudited)

65

Notes

to

Financial

Statements

1.

ORGANIZATION 

BlackRock

Funds

V

(the

“Trust”) and

BlackRock

Bond

Fund,

Inc.

(the

“Corporation”)

are

each

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

as open-end

management

investment

companies.

The

Trust

is

organized

as

a

Massachusetts

business

trust.

The

Corporation

is

organized

as

a

Maryland

corporation.

The

following

are

referred

to

herein

collectively

as

the

“Funds”

or

individually

as

a

“Fund”:

Each Fund

offers

multiple

classes

of

shares.

All

classes

of

shares

have

identical

voting,

dividend,

liquidation

and

other

rights

and

are

subject

to

the

same

terms

and

conditions,

except

that

certain

classes

bear

expenses

related

to

the

shareholder

servicing

and

distribution

of

such

shares. Institutional

and

Class

K

Shares

are

sold

without

a

sales

charge

and

only

to

certain

eligible

investors.

Investor

A

Shares

bear

certain

expenses

related

to

shareholder

servicing

of

such

shares.

Investor

A

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.

(a)

 Investor

A

Shares

may

be

subject

to

a

CDSC

for

certain

redemptions

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

The

Board

of

Trustees

of

BlackRock

Funds

V

and

Board

of

Directors

of

BlackRock

Bond

Fund,

Inc.

are

collectively

referred

to

throughout

this

report

as

the

“Board”,

and

the

directors/trustees

thereof

are

collectively

referred

to

throughout

this

report

as

“Directors”.

The

Funds,

together

with

certain

other

registered

investment

companies

advised

by

BlackRock

Advisors,

LLC

(the

“Manager”) or

its

affiliates,

are

included

in

a

complex

of

funds

referred

to

as

the BlackRock

Fixed-Income

Complex.

2.

SIGNIFICANT

ACCOUNTING

POLICIES

The

financial

statements

are

prepared

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(“U.S.

GAAP”),

which

may

require

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

in

the

financial

statements,

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

increases

and

decreases

in

net

assets

from

operations

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Each

Fund

is

considered

an

investment

company

under

U.S.

GAAP

and

follows

the

accounting

and

reporting

guidance

applicable

to

investment

companies.

Below

is

a

summary

of

significant

accounting

policies: 

Investment

Transactions

and

Income

Recognition:

For

financial

reporting

purposes,

investment

transactions

are

recorded

on

the

dates

the

transactions

are

executed

(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,

are

recognized

daily

on

an

accrual

basis.

Income,

expenses

and

realized

and

unrealized

gains

and

losses

are

allocated

daily

to

each

class

based

on

its

relative

net

assets. For

convertible

securities,

premiums

attributable

to

the

debt

instrument

are

amortized,

but

premiums

attributable

to

the

conversion

feature

are

not

amortized.

Foreign

Currency

Translation:

Each

Fund’s

books

and

records

are

maintained

in

U.S.

dollars.

Securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

using

exchange

rates

determined

as

of

the

close

of

trading

on

the

New

York

Stock

Exchange

(“NYSE”).

Purchases

and

sales

of

investments

are

recorded

at

the

rates

of

exchange

prevailing

on

the

respective

dates

of

such

transactions.

Generally,

when

the

U.S.

dollar

rises

in

value

against

a

foreign

currency,

the

investments

denominated

in

that

currency

will

lose

value;

the

opposite

effect

occurs

if

the

U.S.

dollar

falls

in

relative

value. 

Each

Fund

does

not

isolate

the

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

Statements

of

Operations

from

the

effects

of

changes

in

market

prices

of

those

investments,

but

are

included

as

a

component

of

net

realized

and

unrealized

gain

(loss)

from

investments.

Each

Fund

reports

realized

currency

gains

(losses)

on

foreign

currency

related

transactions

as

components

of

net

realized

gain

(loss)

for

financial

reporting

purposes,

whereas

such

components

are

generally

treated

as

ordinary

income

for

U.S.

federal

income

tax

purposes.

Collateralization:

If

required

by

an

exchange

or

counterparty

agreement,

the

Funds

may

be

required

to

deliver/deposit

cash

and/or

securities

to/with

an

exchange,

or

broker-

dealer

or

custodian

as

collateral

for

certain

investments.  

Distributions:

Distributions

from

net

investment

income

are

declared

daily

and

paid

monthly.

Distributions

of

capital

gains

are

recorded

on

the

ex-dividend

dates

and

made

at

least

annually.

The

character

and

timing

of

distributions

are

determined

in

accordance

with

U.S.

federal

income

tax

regulations,

which

may

differ

from

U.S.

GAAP.

Deferred

Compensation

Plan:

Under

the

Deferred

Compensation

Plan

(the

“Plan”)

approved

by the

Board,

the

Directors

who

are

not

“interested

persons”

of

the

Funds,

as

defined

in

the

1940

Act

(“Independent

Directors

”),

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

Directors

.

This

has

Registrant

Name

Fund

Name

Herein

Referred

To

As

Diversification

Classification

BlackRock

Funds

V

.....................

BlackRock

Sustainable

High

Yield

Bond

Fund

Sustainable

High

Yield

Bond

Diversified

BlackRock

Funds

V

.....................

BlackRock

Sustainable

Low

Duration

Bond

Fund

Sustainable

Low

Duration

Bond

Diversified

BlackRock

Bond

Fund,

Inc.

................

BlackRock

Sustainable

Total

Return

Fund

Sustainable

Total

Return

Diversified

Share

Class

Initial

Sales

Charge

Contingent

Deferred

Sales

Charge

(“CDSC”)

Conversion

Privilege

Institutional

and

Class

K

Shares

.....................................

No

No

None

Investor

A

Shares

..............................................

Yes

No

(a)

None

Notes

to

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

66

the

same

economic

effect

for

the

Independent 

Directors

as

if

the

Independent 

Directors

had

invested

the

deferred

amounts

directly

in

certain

funds

in

the

BlackRock

Fixed-

Income

Complex.

The

Plan

is

not

funded

and

obligations

thereunder

represent

general

unsecured

claims

against

the

general

assets

of

each

Fund,

as

applicable.

Deferred

compensation

liabilities,

if

any, are

included

in

the

Directors’

and

Officer’s

fees

payable

in

the

Statements

of

Assets

and

Liabilities

and

will

remain

as

a

liability

of

the

Funds

until

such

amounts

are

distributed

in

accordance

with

the

Plan. Net

appreciation

(depreciation)

in

the

value

of

participants’

deferral

accounts

is

allocated

among

the

participating

funds

in

the

BlackRock

Fixed-Income

Complex

and

reflected

as Directors

and

Officer

expense

on

the

Statements

of

Operations.

The Directors

and

Officer

expense

may

be

negative

as

a

result

of

a

decrease

in

value

of

the

deferred

accounts.

Offering

Costs:

Offering

costs

are

amortized

over

a

12-month

period

beginning

with

the

commencement

of

operations

of

a

class

of

shares.  

Indemnifications:

In

the

normal

course

of

business,

a

Fund

enters

into

contracts

that

contain

a

variety

of

representations

that

provide

general

indemnification.

A

Fund’s

maximum

exposure

under

these

arrangements

is

unknown

because

it

involves

future

potential

claims

against

a

Fund,

which

cannot

be

predicted

with

any

certainty.

Other:

Expenses

directly

related

to

a

Fund

or

its

classes

are

charged

to

that

Fund

or

the

applicable

class.

Expenses

directly

related

to

the

Funds

and

other

shared

expenses

prorated

to

the

Funds

are

allocated

daily

to

each

class

based

on

their

relative

net

assets

or

other

appropriate

methods.

Other

operating

expenses

shared

by

several

funds,

including

other

funds

managed

by

the

Manager,

are

prorated

among

those

funds

on

the

basis

of

relative

net

assets

or

other

appropriate

methods. 

3.

INVESTMENT

VALUATION

AND

FAIR

VALUE

MEASUREMENTS 

Investment

Valuation

Policies:

 Each

Fund’s

investments

are

valued

at

fair

value

(also

referred

to

as

“market

value”

within

the

financial

statements)

each

day

that

the

Fund

is

open

for

business

and,

for

financial

reporting

purposes,

as

of

the

report

date.

U.S.

GAAP

defines

fair

value

as

the

price

a

fund

would

receive

to

sell

an

asset

or

pay

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date.

The

Board

of

each

Fund

has

approved

the

designation

of

each

Fund’s

Manager

as

the

valuation

designee

for

each

Fund.

Each

Fund

determines

the

fair

values

of

its

financial

instruments

using

various

independent

dealers

or

pricing

services

under

the

Manager’s

policies.

If

a

security’s

market

price

is

not

readily

available

or

does

not

otherwise

accurately

represent

the

fair

value

of

the

security,

the

security

will

be

valued

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value.

The

Manager

has

formed

a

committee

(the

“Valuation

Committee”)

to

develop

pricing

policies

and

procedures

and

to

oversee

the

pricing

function

for

all

financial

instruments,

with

assistance

from

other

BlackRock

pricing

committees.

Fair

Value

Inputs

and

Methodologies:

The

following

methods

and

inputs

are

used

to

establish

the

fair

value

of

each

Fund’s

assets

and

liabilities: 

Equity

investments

traded

on

a

recognized

securities

exchange

are

valued

at

that

day’s official

closing

price,

as

applicable,

on

the

exchange

where

the

stock

is

primarily

traded.

Equity

investments

traded

on

a

recognized

exchange

for

which

there

were

no

sales

on

that

day

may

be

valued

at

the

last

available

bid

(long

positions)

or

ask

(short

positions)

price.  

Fixed-income investments

for

which

market

quotations

are

readily

available

are

generally

valued

using

the

last

available

bid

price

or

current

market

quotations

provided

by

independent

dealers

or

third-party

pricing

services. Floating

rate

loan

interests

are

valued

at

the

mean

of

the

bid

prices

from

one

or

more

independent

brokers

or

dealers

as

obtained

from

a

third-party

pricing

service. Pricing

services

generally

value

fixed-income

securities

assuming

orderly

transactions

of

an

institutional

round

lot

size,

but

a

fund

may

hold

or

transact

in

such

securities

in

smaller,

odd

lot

sizes.

Odd

lots

may

trade

at

lower

prices

than

institutional

round

lots.

The

pricing

services

may

use

matrix

pricing

or

valuation

models

that

utilize

certain

inputs

and

assumptions

to

derive

values,

including

transaction

data

(e.g.,

recent

representative

bids

and

offers),

market

data, credit

quality

information,

perceived

market

movements,

news,

and

other

relevant

information.

Certain

fixed-income

securities,

including

asset-

backed

and

mortgage

related

securities

may

be

valued

based

on

valuation

models

that

consider

the

estimated

cash

flows

of

each

tranche

of

the

entity,

establish

a

benchmark

yield

and

develop

an

estimated

tranche

specific

spread

to

the

benchmark

yield

based

on

the

unique

attributes

of

the

tranche.

The

amortized

cost

method

of

valuation

may

be

used

with

respect

to

debt

obligations

with

sixty

days

or

less

remaining

to

maturity

unless

the

Manager

determines

such

method

does

not

represent

fair

value.

Investments

in

open-end

U.S.

mutual

funds

(including

money

market

funds) are

valued

at

that

day’s

published net

asset

value

(“NAV”).

Futures

contracts

are valued

based

on

that

day’s

last

reported

settlement

or

trade price

on

the

exchange

where

the

contract

is

traded.

Forward

foreign

currency

exchange

contracts

are

valued

at

the

mean

between

the

bid

and

ask

prices

and

are

determined

as

of

the

close

of

trading

on

the

NYSE

based

on

that

day’s

prevailing

forward

exchange

rate

for

the

underlying

currencies.

Exchange-traded

options

are

valued

at

the

mean

between

the

last bid

and

ask

prices

at

the

close

of

the

options

market in

which

the

options

trade.

An

exchange-

traded

option

for

which there

is

no

mean

price

is

valued

at

the

last

bid

(long

positions)

or

ask

(short

positions)

price.

If

no

bid

or

ask

price

is

available,

the

prior

day’s

price will

be

used,

unless

it

is

determined

that

the

prior

day’s

price

no

longer

reflects

the

fair

value

of

the

option.

Over-the-counter

(“OTC”)

options

and

options

on

swaps

(“swaptions”)

are

valued

by

an

independent

pricing

service

using

a

mathematical

model,

which

incorporates

a

number

of

market

data

factors,

such

as

the

trades

and

prices

of

the

underlying

instruments.

Swap

agreements

are

valued

utilizing

quotes

received

daily

by

independent pricing

services

or

through

brokers,

which

are

derived

using

daily

swap

curves

and

models

that

incorporate

a

number

of

market

data

factors,

such

as

discounted

cash

flows,

trades

and

values

of

the

underlying

reference

instruments. 

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

Funds

use

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

Notes

to

Financial

Statements

(unaudited)

(continued)

67

Notes

to

Financial

Statements

price

is

not

available,

the

investment

will

be

valued

by

the

Valuation

Committee

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value

(“Fair

Valued

Investments”).

The

fair

valuation

approaches

that

may

be

used

by

the

Valuation

Committee include

market

approach,

income

approach

and

cost

approach.

Valuation

techniques

such

as

discounted

cash

flow,

use

of

market

comparables

and

matrix

pricing

are

types

of

valuation

approaches

and

are

typically

used

in

determining

fair

value.

When

determining

the

price

for

Fair

Valued

Investments,

the

Valuation

Committee

seeks

to

determine

the

price

that

each

Fund

might

reasonably

expect

to

receive

or

pay

from

the

current

sale

or

purchase

of

that

asset

or

liability

in

an

arm’s-length

transaction.

Fair

value

determinations

shall

be

based

upon

all

available

factors

that

the

Valuation

Committee

deems

relevant

and

consistent

with

the

principles

of

fair

value

measurement.

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

Valuation

Committee

and

third-party

pricing

services

utilized

by

the

Valuation

Committee

include one

or

a

combination

of,

but

not

limited

to,

the

following

inputs.  

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

a

Fund.

Typically,

the

most

recently

available

information

by

a

Private

Company

is

as

of

a

date

that

is

earlier

than

the

date

a

Fund

is

calculating

its

NAV.

This

factor

may

result

in

a

difference

between

the

value

of

the

investment

and

the

price

a

Fund

could

receive

upon

the

sale

of

the

investment. 

Fair

Value

Hierarchy:

Various

inputs

are

used

in

determining

the

fair

value

of

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

each

Fund

has

the

ability

to

access;

Level

2

—

Other

observable

inputs

(including,

but

not

limited

to,

quoted

prices

for

similar

assets

or

liabilities

in

markets

that

are

active,

quoted

prices

for

identical

or

similar

assets

or

liabilities

in

markets

that

are

not

active,

inputs

other

than

quoted

prices

that

are

observable

for

the

assets

or

liabilities

(such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks

and

default

rates)

or

other

market–corroborated

inputs);

and 

Level

3 —

Unobservable

inputs

based

on

the

best

information

available

in

the

circumstances,

to

the

extent

observable

inputs

are

not

available

(including

the

Valuation

Committee’s

assumptions

used

in

determining

the

fair

value

of

financial

instruments).

The

hierarchy

gives

the

highest

priority

to

unadjusted

quoted

prices

in

active

markets

for

identical

assets

or

liabilities

(Level

1

measurements)

and

the

lowest

priority

to

unobservable

inputs

(Level

3

measurements).

Accordingly,

the

degree

of

judgment

exercised

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

The

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

fair

value

hierarchy

classification

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety. Investments

classified

within

Level

3

have

significant

unobservable

inputs

used

by

the

Valuation

Committee

in

determining

the

price

for

Fair

Valued

Investments.

Level

3

investments

include

equity

or

debt

issued

by

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

Standard

Inputs

Generally

Considered

By

The

Valuation

Committee

And

Third-Party

Pricing

Services

Market

approach

........................

(i)        

recent

market

transactions,

including

subsequent

rounds

of

financing,

in

the

underlying

investment

or

comparable  

            issuers;

(ii)        recapitalizations

and

other

transactions

across

the

capital

structure;

and

(iii)      

market

multiples

of

comparable

issuers.

Income

approach

..........................

(i)        

future

cash

flows

discounted

to

present

and

adjusted

as

appropriate

for

liquidity,

credit,

and/or

market

risks;

(ii)        quoted

prices

for

similar

investments

or

assets

in

active

markets;

and

(iii)      

other

risk

factors,

such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks,

            recovery

rates,

liquidation

amounts

and/or

default

rates.

Cost

approach

............................

(i)        

audited

or

unaudited

financial

statements,

investor

communications

and

financial

or

operational

metrics

            issued

by

the

Private

Company;

(ii)        changes

in

the

valuation

of

relevant

indices

or

publicly

traded

companies

comparable

to

the

Private

Company;

(iii)      

relevant

news

and

other

public

sources;

and

(iv)      

known

secondary

market

transactions

in

the

Private

Company’s

interests

and

merger

or

acquisition

activity

            in

companies

comparable

to

the

Private

Company.

Notes

to

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

68

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.

Collateralized

Debt

Obligations:

Collateralized

debt

obligations

(“CDOs”),

including

collateralized

bond

obligations

(“CBOs”)

and

collateralized

loan

obligations

(“CLOs”),

are

types

of

asset-backed

securities.

A

CDO

is

an

entity

that

is

backed

by

a

diversified

pool

of

debt

securities

(CBOs)

or

syndicated

bank

loans

(CLOs).

The

cash

flows

of

the

CDO

can

be

split

into

multiple

segments,

called

“tranches,”

which

will

vary

in

risk

profile

and

yield.

The

riskiest

segment

is

the

subordinated

or

“equity”

tranche.

This

tranche

bears

the

greatest

risk

of

defaults

from

the

underlying

assets

in

the

CDO

and

serves

to

protect

the

other,

more

senior,

tranches

from

default

in

all

but

the

most

severe

circumstances.

Since

it

is

shielded

from

defaults

by

the

more

junior

tranches,

a

“senior”

tranche

will

typically

have

higher

credit

ratings

and

lower

yields

than

their

underlying

securities,

and

often

receive

investment

grade

ratings

from

one

or

more

of

the

nationally

recognized

rating

agencies.

Despite

the

protection

from

the

more

junior

tranches,

senior

tranches

can

experience

substantial

losses

due

to

actual

defaults,

increased

sensitivity

to

future

defaults

and

the

disappearance

of

one

or

more

protecting

tranches

as

a

result

of

changes

in

the

credit

profile

of

the

underlying

pool

of

assets. 

Multiple

Class

Pass-Through

Securities:

Multiple

class

pass-through

securities,

including

collateralized

mortgage

obligations

(“CMOs”)

and

commercial

mortgage-backed

securities,

may

be

issued

by

Ginnie

Mae,

U.S.

Government

agencies

or

instrumentalities

or

by

trusts

formed

by

private

originators

of,

or

investors

in,

mortgage

loans.

In

general,

CMOs

are

debt

obligations

of

a

legal

entity

that

are

collateralized

by

a

pool

of

residential

or

commercial

mortgage

loans

or

Mortgage

Assets.

The

payments

on

these

are

used

to

make

payments

on

the

CMOs

or

multiple

pass-through

securities.

Multiple

class

pass-through

securities

represent

direct

ownership

interests

in

the

Mortgage

Assets.

Classes

of

CMOs

include

interest

only

(“IOs”),

principal

only

(“POs”),

planned

amortization

classes

and

targeted

amortization

classes.

IOs

and

POs

are

stripped

mortgage-backed

securities

representing

interests

in

a

pool

of

mortgages,

the

cash

flow

from

which

has

been

separated

into

interest

and

principal

components.

IOs

receive

the

interest

portion

of

the

cash

flow

while

POs

receive

the

principal

portion.

IOs

and

POs

can

be

extremely

volatile

in

response

to

changes

in

interest

rates.

As

interest

rates

rise

and

fall,

the

value

of

IOs

tends

to

move

in

the

same

direction

as

interest

rates.

POs

perform

best

when

prepayments

on

the

underlying

mortgages

rise

since

this

increases

the

rate

at

which

the

principal

is

returned

and

the

yield

to

maturity

on

the

PO.

When

payments

on

mortgages

underlying

a

PO

are

slower

than

anticipated,

the

life

of

the

PO

is

lengthened

and

the

yield

to

maturity

is

reduced.

If

the

underlying

Mortgage

Assets

experience

greater

than

anticipated

prepayments

of

principal,

a

fund’s

initial

investment

in

the

IOs

may

not

fully

recoup. 

Zero-Coupon

Bonds:

Zero-coupon

bonds

are

normally

issued

at

a

significant

discount

from

face

value

and

do

not

provide

for

periodic

interest

payments.

These

bonds

may

experience

greater

volatility

in

market

value

than

other

debt

obligations

of

similar

maturity

which

provide

for

regular

interest

payments. 

Capital

Securities

and

Trust

Preferred

Securities:

Capital

securities,

including

trust

preferred

securities,

are

typically

issued

by

corporations,

generally

in

the

form

of

interest-bearing

notes

with

preferred

securities

characteristics.

In

the

case

of

trust

preferred

securities,

an

affiliated

business

trust

of

a

corporation

issues

these

securities,

generally

in

the

form

of

beneficial

interests

in

subordinated

debentures

or

similarly

structured

securities.

The

securities

can

be

structured

with

either

a

fixed

or

adjustable

coupon

that

can

have

either

a

perpetual

or

stated

maturity

date.

For

trust

preferred

securities,

the

issuing

bank

or

corporation

pays

interest

to

the

trust,

which

is

then

distributed

to

holders

of

these

securities

as

a

dividend.

Dividends

can

be

deferred

without

creating

an

event

of

default

or

acceleration,

although

maturity

cannot

take

place

unless

all

cumulative

payment

obligations

have

been

met.

The

deferral

of

payments

does

not

affect

the

purchase

or

sale

of

these

securities

in

the

open

market.

These

securities

generally

are

rated

below

that

of

the

issuing

company’s

senior

debt

securities

and

are

freely

callable

at

the

issuer’s

option. 

Preferred

Stocks:

Preferred

stock

has

a

preference

over

common

stock

in

liquidation

(and

generally

in

receiving

dividends

as

well),

but

is

subordinated

to

the

liabilities

of

the

issuer

in

all

respects.

As

a

general

rule,

the

market

value

of

preferred

stock

with

a

fixed

dividend

rate

and

no

conversion

element

varies

inversely

with

interest

rates

and

perceived

credit

risk,

while

the

market

price

of

convertible

preferred

stock

generally

also

reflects

some

element

of

conversion

value.

Because

preferred

stock

is

junior

to

debt

securities

and

other

obligations

of

the

issuer,

deterioration

in

the

credit

quality

of

the

issuer

will

cause

greater

changes

in

the

value

of

a

preferred

stock

than

in

a

more

senior

debt

security

with

similar

stated

yield

characteristics.

Unlike

interest

payments

on

debt

securities,

preferred

stock

dividends

are

payable

only

if

declared

by

the

issuer’s

board

of

directors.

Preferred

stock

also

may

be

subject

to

optional

or

mandatory

redemption

provisions. 

Floating

Rate

Loan

Interests:

Floating

rate

loan

interests

are

typically

issued

to

companies

(the

“borrower”)

by

banks,

other

financial

institutions,

or

privately

and

publicly

offered

corporations

(the

“lender”).

Floating

rate

loan

interests

are

generally

non-investment

grade,

often

involve

borrowers

whose

financial

condition

is

troubled

or

uncertain

and

companies

that

are

highly

leveraged

or

in

bankruptcy

proceedings.

In

addition,

transactions

in

floating

rate

loan

interests

may

settle

on

a

delayed

basis,

which

may

result

in

proceeds

from

the

sale

not

being

readily

available

for

a

fund

to

make

additional

investments

or

meet

its

redemption

obligations.

Floating

rate

loan

interests

may

include

fully

funded

term

loans

or

revolving

lines

of

credit.

Floating

rate

loan

interests

are

typically

senior

in

the

corporate

capital

structure

of

the

borrower.

Floating

rate

loan

interests

generally

pay

interest

at

rates

that

are

periodically

determined

by

reference

to

a

base

lending

rate

plus

a

premium.

Since

the

rates

reset

only

periodically,

changes

in

prevailing

interest

rates

(and

particularly

sudden

and

significant

changes)

can

be

expected

to

cause

some

fluctuations

in

the

NAV

of

a

fund

to

the

extent

that

it

invests

in

floating

rate

loan

interests.

The

base

lending

rates

are

generally

the

lending

rate

offered

by

one

or

more

European

banks,

such

as

the

London

Interbank

Offered

Rate

(“LIBOR”),

the

prime

rate

offered

by

one

or

more

U.S.

banks

or

the

certificate

of

deposit

rate.

Floating

rate

loan

interests

may

involve

foreign

borrowers,

and

investments

may

be

denominated

in

foreign

currencies.

These

investments

are

treated

as

investments

in

debt

securities

for

purposes

of

a

fund’s

investment

policies. 

When

a

fund

purchases

a

floating

rate

loan

interest,

it

may

receive

a

facility

fee

and

when

it

sells

a

floating

rate

loan

interest,

it

may

pay

a

facility

fee.

On

an

ongoing

basis,

a

fund

may

receive

a

commitment

fee

based

on

the

undrawn

portion

of

the

underlying

line

of

credit

amount

of

a

floating

rate

loan

interest.

Facility

and

commitment

fees

are

Notes

to

Financial

Statements

(unaudited)

(continued)

69

Notes

to

Financial

Statements

typically

amortized

to

income

over

the

term

of

the

loan

or

term

of

the

commitment,

respectively.

Consent

and

amendment

fees

are

recorded

to

income

as

earned.

Prepayment

penalty

fees,

which

may

be

received

by

a

fund

upon

the

prepayment

of

a

floating

rate

loan

interest

by

a

borrower,

are

recorded

as

realized

gains.

A

fund

may

invest

in

multiple

series

or

tranches

of

a

loan.

A

different

series

or

tranche

may

have

varying

terms

and

carry

different

associated

risks.

Floating

rate

loan

interests

are

usually

freely

callable

at

the

borrower’s

option.

A

fund

may

invest

in

such

loans

in

the

form

of

participations

in

loans

(“Participations”)

or

assignments

(“Assignments”)

of

all

or

a

portion

of

loans

from

third

parties.

Participations

typically

will

result

in

a

fund

having

a

contractual

relationship

only

with

the

lender,

not

with

the

borrower.

A

fund

has

the

right

to

receive

payments

of

principal,

interest

and

any

fees

to

which

it

is

entitled

only

from

the

lender

selling

the

Participation

and

only

upon

receipt

by

the

lender

of

the

payments

from

the

borrower.

In

connection

with

purchasing

Participations,

a

fund

generally

will

have

no

right

to

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement,

nor

any

rights

of

offset

against

the

borrower.

A

fund

may

not

benefit

directly

from

any

collateral

supporting

the

loan

in

which

it

has

purchased

the

Participation.

As

a

result,

a

fund

assumes

the

credit

risk

of

both

the

borrower

and

the

lender

that

is

selling

the

Participation.

A

fund’s

investment

in

loan

participation

interests

involves

the

risk

of

insolvency

of

the

financial

intermediaries

who

are

parties

to

the

transactions.

In

the

event

of

the

insolvency

of

the

lender

selling

the

Participation,

a

fund

may

be

treated

as

a

general

creditor

of

the

lender

and

may

not

benefit

from

any

offset

between

the

lender

and

the

borrower.

Assignments

typically

result

in

a

fund

having

a

direct

contractual

relationship

with

the

borrower,

and

a

fund

may

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement.

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

Statements

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

for

TBA

commitments

or

cash

received

as

collateral

for

TBA

commitments,

respectively.

Non-cash

collateral

pledged

by

a

fund,

if

any,

is

noted

in

the

Schedules

of

Investments. Typically,

a

fund

is

permitted

to

sell,

re-pledge

or

use

the

collateral

it

receives;

however,

the

counterparty

is

not

permitted

to

do

so.

To

the

extent

amounts

due

to

a

fund

are

not

fully

collateralized,

contractually

or

otherwise,

a

fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Mortgage

Dollar

Roll

Transactions

:

The

Funds

may

sell

TBA

mortgage-backed

securities

and

simultaneously

contract

to

repurchase

substantially

similar

(i.e.,

same

type,

coupon

and

maturity)

securities

on

a

specific

future

date

at

an

agreed

upon

price.

During

the

period

between

the

sale

and

repurchase,

a

fund

is

not

entitled

to

receive

interest

and

principal

payments

on

the

securities

sold.

Mortgage

dollar

roll

transactions

are

treated

as

purchases

and

sales

and

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. 

5.

Derivative

Financial

Instruments

The

Funds

engage

in

various

portfolio

investment

strategies

using

derivative

contracts

both

to

increase

the

returns

of

the

Funds

and/or

to

manage

their

exposure

to

certain

risks

such

as

credit

risk,

equity

risk,

interest

rate

risk,

foreign

currency

exchange

rate

risk,

commodity

price

risk

or

other

risks

(e.g.,

inflation

risk).

Derivative

financial

instruments

categorized

by

risk

exposure

are

included

in

the

Schedules

of

Investments.

These

contracts

may

be

transacted

on

an

exchange

or

OTC.

Futures

Contracts:

Futures

contracts

are

purchased

or

sold

to

gain

exposure

to,

or

manage

exposure

to,

changes

in

interest

rates

(interest

rate

risk)

and

changes

in

the

value

of

equity

securities

(equity

risk)

or

foreign

currencies

(foreign

currency

exchange

rate

risk)

.

Futures

contracts

are

exchange-traded agreements

between

the

Funds

and

a

counterparty

to

buy

or

sell

a

specific

quantity

of

an

underlying

instrument

at

a

specified

price

and

on

a

specified

date.

Depending

on

the

terms

of

a

contract,

it

is

settled

either

through

physical

delivery

of

the

underlying

instrument

on

the

settlement

date

or

by

payment

of

a

cash

amount

on

the

settlement

date.

Upon

entering

into

a

futures

contract,

the

Funds

are

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

a

contract’s

size

and

risk

profile.

The

initial

margin

deposit

must

then

be

maintained

at

an

established

level

over

the

life

of

the

contract.

Amounts

pledged,

which

are

considered

restricted,

are

included

in

cash

pledged

for

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

Securities

deposited

as

initial

margin

are

designated

in

the

Schedules

of

Investments

and

cash

deposited,

if

any, are

shown

as

cash

pledged

for

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Funds

agree

to

receive

from

or

pay

to

the

broker

an

amount

of

cash

equal

to

the

daily

fluctuation

in

market

value

of

the

contract

(“variation

margin”).

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and,

if

any,

shown

as

variation

margin

receivable

(or

payable)

on

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

When

the

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

notional

amount

of

the

contract

at

the

time

it

was

opened

and

the

notional

amount

at

the

time

it

was

closed.

The

use

of

futures

contracts

involves

the

risk

of

an

imperfect

correlation

in

the

movements

in

the

price

of

futures

contracts

and

interest

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

Funds

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.

Notes

to

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

70

The

contract

is

marked-to-market

daily

and

the

change

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

in

the

Statements

of

Assets

and

Liabilities.

When

a

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

value

at

the

time

it

was

opened

and

the

value

at

the

time

it

was

closed.

Non-deliverable

forward

foreign

currency

exchange

contracts

are

settled

with

the

counterparty

in

cash

without

the

delivery

of

foreign

currency.

The

use

of

forward

foreign

currency

exchange

contracts

involves

the

risk

that

the

value

of

a

forward

foreign

currency

exchange

contract

changes

unfavorably

due

to

movements

in

the

value

of

the

referenced

foreign

currencies,

and

such

value

may

exceed

the

amount(s)

reflected

in

the Statements

of

Assets

and

Liabilities. Cash

amounts

pledged

for

forward

foreign

currency

exchange

contracts

are

considered

restricted

and

are

included

in

cash

pledged

as

collateral

for

OTC

derivatives

in

the

Statements

of

Assets

and

Liabilities.

A

Fund’s

risk

of

loss

from

counterparty

credit

risk

on

OTC

derivatives

is

generally

limited

to

the

aggregate

unrealized

gain

netted

against

any

collateral

held

by

the

Fund.

Options:

The

Funds

may purchase

and

write

call

and

put

options

to

increase

or

decrease

their

exposure

to

the

risks

of

underlying

instruments,

including

equity

risk,

interest

rate

risk

and/or

commodity

price

risk

and/or,

in

the

case

of

options

written,

to

generate

gains

from

options

premiums.

A

call

option

gives

the

purchaser

(holder)

of

the

option

the

right

(but

not

the

obligation)

to

buy,

and

obligates

the

seller

(writer)

to

sell

(when

the

option

is

exercised)

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

A

put

option

gives

the

holder

the

right

to

sell

and

obligates

the

writer

to

buy

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

Premiums

paid

on

options

purchased

and

premiums

received

on

options

written,

as

well

as

the

daily

fluctuation

in

market

value,

are

included

in

investments

at

value

–

unaffiliated

and

options

written

at

value,

respectively,

in

the

Statements

of

Assets

and

Liabilities.

When

an

instrument

is

purchased

or

sold

through

the

exercise

of

an

option,

the

premium

is

offset

against

the

cost

or

proceeds

of

the

underlying

instrument.

When

an

option

expires,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

to

the

extent

of

the

premiums

received

or

paid.

When

an

option

is

closed

or

sold,

a

gain

or

loss

is

recorded

in

the

Statements

of

Operations

to

the

extent

the

cost

of

the

closing

transaction

exceeds

the

premiums

received

or

paid.

When

the

Funds

write

a

call

option,

such

option

is

typically

“covered,”

meaning

that

they

hold

the

underlying

instrument

subject

to

being

called

by

the

option

counterparty.

When

the

Funds

write

a

put

option,

cash

is

segregated

in

an

amount

sufficient

to

cover

the

obligation.

These

amounts,

which

are

considered

restricted,

are

included

in

cash

pledged

as

collateral

for

options

written

in

the

Statements

of

Assets

and

Liabilities.

Swaptions

–

The

Funds

may purchase

and

write

swaptions

primarily

to

preserve

a

return

or

spread

on

a

particular

investment

or

portion

of

the

Funds’

holdings,

as

a

duration

management

technique

or

to

protect

against

an

increase

in

the

price

of

securities

it

anticipates

purchasing

at

a

later

date.

The

purchaser

and

writer

of

a

swaption

is

buying

or

granting

the

right

to

enter

into

a

previously

agreed

upon

interest

rate

or

credit

default

swap

agreement

(interest

rate

risk

and/or

credit

risk)

at

any

time

before

the

expiration

of

the

option.

Foreign

currency

options

– The

Funds

may purchase

and

write

foreign

currency

options,

foreign

currency

futures

and

options

on

foreign

currency

futures

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

Foreign

currency

options

give

the

purchaser

the

right

to

buy

from

or

sell

to

the

writer

a

foreign

currency

at

any

time

before

the

expiration

of

the

option.

In

purchasing

and

writing

options,

the

Funds

bear

the

risk

of

an

unfavorable

change

in

the

value

of

the

underlying

instrument

or

the

risk

that

they

may

not

be

able

to

enter

into

a

closing

transaction

due

to

an

illiquid

market.

Exercise

of

a

written

option

could

result

in

the

Funds

purchasing

or

selling

a

security

when they

otherwise

would

not,

or

at

a

price

different

from

the

current

market

value.

Swaps:

Swap

contracts

are

entered

into

to

manage

exposure

to

issuers,

markets

and

securities.

Such

contracts

are

agreements

between

the

Funds

and

a

counterparty

to

make

periodic

net

payments

on

a

specified

notional

amount

or

a

net

payment

upon

termination.

Swap

agreements

are

privately

negotiated

in

the

OTC

market

and

may

be

entered

into

as

a

bilateral

contract

(“OTC

swaps”)

or

centrally

cleared

(“centrally

cleared

swaps”).

For

OTC

swaps,

any

upfront

premiums

paid

and

any

upfront

fees

received

are

shown

as

swap

premiums

paid

and

swap

premiums

received,

respectively,

in

the

Statements

of

Assets

and

Liabilities

and

amortized

over

the

term

of

the

contract.

The

daily

fluctuation

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

on

OTC

Swaps

in

the

Statements

of

Assets

and

Liabilities.

Payments

received

or

paid

are

recorded

in

the

Statements

of

Operations

as

realized

gains

or

losses,

respectively.

When

an

OTC

swap

is

terminated,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

proceeds

from

(or

cost

of)

the

closing

transaction

and

the

Funds’

basis

in

the

contract,

if

any.

Generally,

the

basis

of

the

contract

is

the

premium

received

or

paid.

In

a

centrally

cleared

swap,

immediately

following

execution

of

the

swap

contract,

the

swap

contract

is

novated

to

a

central

counterparty

(the

“CCP”)

and

the

CCP

becomes

the Funds’

counterparty

on

the

swap. Each

Fund is

required

to

interface

with

the

CCP

through

the

broker.

Upon

entering

into

a

centrally

cleared

swap, each

Fund is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

the

size

and

risk

profile

of

the

particular

swap.

Securities

deposited

as

initial

margin

are

designated

in

the

Schedules

of

Investments

and

cash

deposited

is

shown

as

cash

pledged

for

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Amounts

pledged,

which

are

considered

restricted

cash,

are

included

in

cash

pledged

for

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Pursuant

to

the

contract, each

Fund

agrees

to

receive

from

or

pay

to

the

broker

variation

margin.

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and

shown

as

variation

margin

receivable

(or

payable)

on

centrally

cleared

swaps

in

the

Statements

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

Statements

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

Funds

may

either

buy

or

sell

(write)

credit

default

swaps

on

single-name

issuers

(corporate

or

sovereign),

a

combination

or

basket

of

single-name

issuers

or

traded

indexes.

Credit

default

swaps

are

agreements

in

which

the

protection

buyer

pays

fixed

periodic

payments

to

the

seller

in

consideration

for

a

promise

from

the

protection

seller

to

make

a

specific

payment

should

a

negative

credit

event

take

place

with

respect

to

the

referenced

entity

(e.g.,

bankruptcy,

failure

to

pay,

obligation

acceleration,

repudiation,

moratorium

or

restructuring).

As

a

buyer,

if

an

underlying

credit

event

occurs,

the

Funds

will

either

(i)

receive

from

the

seller

an

amount

equal

to

the

notional

amount

of

the

swap

and

deliver

the

referenced

security

or

underlying

securities

comprising

the

index,

or

(ii)

receive

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

As

a

seller

(writer),

if

an

underlying

credit

event

occurs,

the

Funds

will

either

pay

the

buyer

an

amount

equal

to

the

notional

amount

of

the

swap

and

take

delivery

of

the

referenced

security

or

underlying

securities

Notes

to

Financial

Statements

(unaudited)

(continued)

71

Notes

to

Financial

Statements

comprising

the

index

or

pay

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

Total

return

swaps

—

Total

return

swaps

are

entered

into

to

obtain

exposure

to

a

security

or

market

without

owning

such

security

or

investing

directly

in

such

market

or

to

exchange

the

risk/return

of

one

security

or

market

(e.g.,

fixed-income)

with

another

security

or

market

(e.g.,

equity

or

commodity

prices)

(equity

risk,

commodity

price

risk

and/or

interest

rate

risk).

Total

return

swaps

are

agreements

in

which

there

is

an

exchange

of

cash

flows

whereby

one

party

commits

to

make

payments

based

on

the

total

return

(distributions

plus

capital

gains/losses)

of

an

underlying

instrument,

or

basket

of

underlying

instruments,

in

exchange

for

fixed

or

floating

rate

interest

payments.

If

the

total

return

of

the

instrument(s)

or

index

underlying

the

transaction

exceeds

or

falls

short

of

the

offsetting

fixed

or

floating

interest

rate

obligation,

the

Funds

receive

payment

from

or

make

a

payment

to

the

counterparty.

Interest

rate

swaps

—

Interest

rate

swaps

are

entered

into

to

gain

or

reduce

exposure

to

interest

rates

or

to

manage

duration,

the

yield

curve

or

interest

rate

(interest

rate

risk).

Interest

rate

swaps

are

agreements

in

which

one

party

pays

a

stream

of

interest

payments,

either

fixed

or

floating,

in

exchange

for

another

party’s

stream

of

interest

payments,

either

fixed

or

floating,

on

the

same

notional

amount

for

a

specified

period

of

time.

In

more

complex

interest

rate

swaps,

the

notional

principal

amount

may

decline

(or

amortize)

over

time.

Forward

swaps

— The

Funds

may enter

into

forward

interest

rate

swaps

and

forward

total

return

swaps.

In

a

forward

swap,

each

Fund

and

the

counterparty

agree

to

make

periodic

net

payments

beginning

on

a

specified

date

or

a

net

payment

at

termination.

Swap

transactions

involve,

to

varying

degrees,

elements

of

interest

rate,

credit

and

market

risks

in

excess

of

the

amounts

recognized

in

the

Statements

of

Assets

and

Liabilities.

Such

risks

involve

the

possibility

that

there

will

be

no

liquid

market

for

these

agreements,

that

the

counterparty

to

the

agreements

may

default

on

its

obligation

to

perform

or

disagree

as

to

the

meaning

of

the

contractual

terms

in

the

agreements,

and

that

there

may

be

unfavorable

changes

in

interest

rates

and/or

market

values

associated

with

these

transactions.

Master

Netting

Arrangements:

In

order

to

define

its

contractual

rights

and

to

secure

rights

that

will

help

it mitigate its

counterparty

risk, a

Fund

may

enter

into

an

International

Swaps

and

Derivatives

Association,

Inc.

Master

Agreement

(“ISDA

Master

Agreement”)

or

similar

agreement

with

its

counterparties.

An

ISDA

Master

Agreement

is

a

bilateral

agreement

between a

Fund

and

a

counterparty

that

governs

certain

OTC

derivatives

and

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

a

default

and/or

termination

event.

Under

an

ISDA

Master

Agreement, a

Fund

may,

under

certain

circumstances,

offset

with

the

counterparty

certain

derivative

financial

instruments’

payables

and/or

receivables

with

collateral

held

and/or

posted

and

create

one

single

net

payment.

The

provisions

of

the

ISDA

Master

Agreement

typically

permit

a

single

net

payment

in

the

event

of

default

including

the

bankruptcy

or

insolvency

of

the

counterparty.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

the

right

of

offset

in

bankruptcy,

insolvency

or

other

events.

Collateral

Requirements:

For

derivatives

traded

under

an

ISDA

Master

Agreement,

the

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

any

collateral

currently

pledged

by

the

Fund(s)

and

the

counterparty.

Cash

collateral

that

has

been

pledged

to

cover

obligations

of

the

Funds

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Statements

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

and

cash

received

as

collateral,

respectively.

Non-cash

collateral

pledged

by

the

Funds,

if

any,

is

noted

in

the

Schedules

of

Investments.

Generally,

the

amount

of

collateral

due

from

or

to

a

counterparty

is

subject

to

a

certain

minimum

transfer

amount

threshold

before

a

transfer

is

required,

which

is

determined

at

the

close

of

business

of

the

Funds.

Any

additional

required

collateral

is

delivered

to/pledged

by

the

Funds

on

the

next

business

day.

Typically,

the

counterparty

is

not

permitted

to

sell,

re-pledge

or

use

cash

and

non-cash

collateral

it

receives.

A

Fund

generally

agrees

not

to

use

non-cash

collateral

that

it

receives

but

may,

absent

default

or

certain

other

circumstances

defined

in

the

underlying

ISDA

Master

Agreement,

be

permitted

to

use

cash

collateral

received.

In

such

cases,

interest

may

be

paid

pursuant

to

the

collateral

arrangement

with

the

counterparty.

To

the

extent

amounts

due

to

the

Funds

from the

counterparties

are

not

fully

collateralized, each

Fund bears

the

risk

of

loss

from

counterparty

non-performance.

Likewise,

to

the

extent

the

Funds have

delivered

collateral

to

a

counterparty

and

stand

ready

to

perform

under

the

terms

of

their

agreement

with

such

counterparty, each

Fund bears

the

risk

of

loss

from

a

counterparty

in

the

amount

of

the

value

of

the

collateral

in

the

event

the

counterparty

fails

to

return

such

collateral.

Based

on

the

terms

of

agreements,

collateral

may

not

be

required

for

all

derivative

contracts.

For

financial

reporting

purposes,

the

Funds

do

not

offset

derivative

assets

and

derivative

liabilities

that

are

subject

to

netting

arrangements,

if

any,

in

the

Statements

of

Assets

and

Liabilities.

6.

INVESTMENT

ADVISORY

AGREEMENT

AND

OTHER

TRANSACTIONS

WITH

AFFILIATES 

Investment

Advisory:

The

Corporation

and

the

Trust,

on

behalf

of

the

applicable

Funds,

entered

into

an

Investment

Advisory

Agreement

with

the

Manager,

the

Funds’

investment

adviser

and

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

Inc.

(“BlackRock”),

to

provide

investment

advisory

and

administrative

services.

The

Manager

is

responsible

for

the

management

of each

Fund’s

portfolio

and

provides

the

personnel,

facilities,

equipment

and

certain

other

services

necessary

to

the

operations

of each

Fund.

Notes

to

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

72

For

such

services,

each

Fund

pays

the

Manager

a

monthly

fee

at

an

annual

rate

equal

to

the

following

percentages

of

the

average

daily

value

of

each

Fund’s

net

assets:

With

respect

to

each

Fund,

the

Manager

entered

into

separate

sub-advisory

agreements

with

each

of

BlackRock

International

Limited

(“BIL”),

and

with

respect

to

Sustainable

Low

Duration

Bond

and

Sustainable

Total

Return,

BlackRock

(Singapore)

Limited

(“BSL”)

(collectively,

the

“Sub-Advisers”),

each

an

affiliate

of

the

Manager.

The

Manager

pays

BIL

and

BSL

for

services

they

provide

for

that

portion

of

each

Fund

for

which

BIL

and

BSL,

as

applicable,

acts

as

sub-adviser,

a

monthly

fee

that

is

equal

to

a

percentage

of

the

investment

advisory

fees

paid

by

each

Fund

to

the

Manager.

Service

Fees:

The

Corporation

and

the Trust,

on behalf

of the

applicable Funds,

entered

into

a

Distribution

Agreement

and

a Distribution and

Service

Plan

with

BlackRock

Investments,

LLC

(“BRIL”),

an

affiliate

of

the

Manager. Pursuant

to

the

Distribution

and

Service Plan

and in

accordance

with

Rule

12b-1

under

the

1940

Act,

each

Fund

pays

BRIL

ongoing

service fees.

The

fees

are

accrued

daily

and

paid

monthly

at

annual

rates

based

upon

the

average

daily

net

assets

of

the

relevant

share

class

of

each

Fund

as

follows:

BRIL

and

broker-dealers,

pursuant

to

sub-agreements

with

BRIL,

provide

shareholder

servicing

to

the

Funds.

The

ongoing

service

fee compensates

BRIL

and

each

broker-

dealer

for

providing

shareholder

servicing related

services

to

shareholders.

For

the six

months

ended

March

31,

2023,

the

following

table

shows

the

class

specific

service

borne

directly

by

each

share

class

of

each

Fund:

Administration:

The

Corporation

and

the

Trust,

on

behalf

of the

applicable

Funds,

entered

into

an

Administration

Agreement

with

the

Manager,

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

to

provide

administrative

services.

For

these

services,

the

Manager

receives

an

administration

fee

computed

daily

and

payable

monthly,

based

on

a

percentage

of

the

average

daily

net

assets

of

each

Fund.

The

administration

fee,

which

is

shown

as

administration

in

the

Statements

of

Operations,

is

paid

at

the

annual

rates

below.

In

addition,

the

Manager

charges

each

of

the

share

classes

an

administration

fee,

which

is

shown

as

administration —

class

specific

in

the

Statements

of

Operations,

at

an

annual

rate

of

0.02% of

the

average

daily

net

assets

of

each

respective

class.

For

the

six

months

ended

March

31,

2023, the

following

table

shows

the

class

specific

administration

fees

borne

directly

by

each

share

class

of

each

Fund:

Transfer

Agent:

Pursuant

to

written

agreements,

certain

financial

intermediaries,

some

of

which

may

be

affiliates,

provide

the

Funds

with

sub-accounting,

recordkeeping,

sub-transfer

agency

and

other

administrative

services

with

respect

to

servicing

of

underlying

investor

accounts.

For

these

services,

these

entities

receive

an

asset-based

fee

or

an

annual

fee

per

shareholder

account,

which

will

vary

depending

on

share

class

and/or

net

assets.

For

the 

six

months

 ended March

31,

2023,

the

Funds 

did

not

pay

any

amounts

to

affiliates

in

return

for

these

services.

Investment

Advisory

Fees

Average

Daily

Net

Assets

Sustainable

High

Yield

Bond

Sustainable

Low

Duration

Bond

Sustainable

Total

Return

First

$1

billion

.............................................................................

0.500%

0.310%

0.390%

$1

billion

-

$3

billion

.........................................................................

0.470

0.290

0.370

$3

billion

-

$5

billion

.........................................................................

0.450

0.280

0.350

$5

billion

-

$10

billion

........................................................................

0.440

0.270

0.340

Greater

than

$10

billion

.......................................................................

0.430

0.260

0.330

Share

Class

Service

Fees

Investor

A

..............................................................................................................

0.25‌%

Fund

Name

Investor

A

Sustainable

High

Yield

Bond

..................................................................................................

$

109‌

Sustainable

Low

Duration

Bond

................................................................................................

137‌

Sustainable

Total

Return

.....................................................................................................

116‌

Average

Daily

Net

Assets

Administration

Fees

First

$500

million

......................................................................................................

0.0425%

$500

million

-

$1

billion

..................................................................................................

0.0400

$1

billion

-

$2

billion

....................................................................................................

0.0375

$2

billion

-

$4

billion

....................................................................................................

0.0350

$4

billion

-

$13

billion

...................................................................................................

0.0325

Greater

than

$13

billion

..................................................................................................

0.0300

Fund

Name

Institutional

Investor

A

Class

K

Total

Sustainable

High

Yield

Bond

...................................................................

$

9‌

$

9‌

$

4,210‌

$

4,228‌

Sustainable

Low

Duration

Bond

.................................................................

9‌

11‌

4,575‌

4,595‌

Sustainable

Total

Return

......................................................................

9‌

9‌

4,129‌

4,147‌

Notes

to

Financial

Statements

(unaudited)

(continued)

73

Notes

to

Financial

Statements

The

Manager

maintains

a

call

center

that

is

responsible

for

providing

certain

shareholder

services

to

the

Funds.

Shareholder

services

include

responding

to

inquiries

and

processing

purchases

and

sales

based

upon

instructions

from

shareholders.

For

the six

months

ended

March

31,

2023,

each

Fund

reimbursed

the

Manager

the

following

amounts

for

costs

incurred

in

running

the

call

center,

which

are

included

in

transfer

agent

—

class

specific

in

the

Statements

of

Operations:

For

the

six

months ended

March

31,

2023,

the

following

table

shows

the

class

specific

transfer

agent

fees

borne

directly

by

each

share

class

of

each

Fund:

Expense

Limitations,

Waivers,

Reimbursements

and

Recoupments:

The

Manager

contractually

agreed

to

waive

its

investment

advisory

fees

by

the

amount

of

investment

advisory

fees each

Fund

pays

to

the

Manager

indirectly

through

its

investment

in

affiliated

money

market

funds

(the

“affiliated

money

market

fund

waiver”)

through

June

30,

2024.

The

contractual

agreement

may

be

terminated upon

90

days’

notice

by

a

majority

of

the

Independent

Directors,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of a

Fund.

The

amount

of

waivers

and/or

reimbursements

of

fees

and

expenses

made

pursuant

to

the

expense

limitation

described

below

will

be

reduced

by

the

amount

of

the

affiliated

money

market

fund

waiver. These

amounts

are

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations.

For

the

six

months

ended

March

31,

2023,

the

amounts

waived

were

as

follows: 

The

Manager

has

contractually

agreed

to

waive

its

investment

advisory

fee

with

respect

to

any

portion

of each

Fund’s

assets

invested

in

affiliated

equity

and

fixed-

income mutual

funds

and

affiliated

exchange-traded

funds

that

have

a

contractual

management

fee

through

June

30,

2024.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Directors,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

a

Fund.

These

amounts

are

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations. For

the

six

months

ended

March

31,

2023,

there

were

no

fees

waived

by

the

Manager

pursuant

to

this

arrangement.

With

respect

to

each

Fund,

the

Manager

contractually

agreed

to

waive

and/or

reimburse

fees

or

expenses

in

order

to

limit

expenses,

excluding

interest

expense,

dividend

expense,

tax

expense,

acquired

fund

fees

and

expenses,

and

certain

other

fund

expenses,

which

constitute

extraordinary

expenses

not

incurred

in

the

ordinary

course

of each

Fund’s

business

(“expense

limitation”).

The

expense

limitations

as

a

percentage

of

average

daily

net

assets

are

as

follows:

The

Manager

has

agreed

not

to

reduce

or

discontinue

the

contractual

expense

limitations

through

June

30,

2024,

unless

approved

by

the

Board,

including

a

majority

of

Independent

Directors,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

a

Fund.

For

the six

months

ended

March

31,

2023,

the

amounts

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations

were

as

follows:

The

Funds

also

had

a

waiver

of

administration

fees,

which

are

included

in

Administration

fees

waived

by

the

Manager

in

the

Statements

of

Operations.

For

the six

months

ended

March

31,

2023,

the

amounts

waived

were

as

follows:

Fund

Name

Institutional

Investor

A

Class

K

Total

Sustainable

High

Yield

Bond

...................................................................

$

9‌

$

12‌

$

66‌

$

8

7‌

Sustainable

Low

Duration

Bond

.................................................................

10‌

10‌

59‌

79‌

Sustainable

Total

Return

......................................................................

10‌

10‌

60‌

80‌

Fund

Name

Institutional

Investor

A

Class

K

Total

Sustainable

High

Yield

Bond

...................................................................

$

9‌

$

12‌

$

66‌

$

87‌

Sustainable

Low

Duration

Bond

.................................................................

10‌

14‌

59‌

83‌

Sustainable

Total

Return

......................................................................

10‌

10‌

60‌

80‌

Fund

Name

Amounts

Waived

Sustainable

High

Yield

Bond

.............................................................................................

$

458

Sustainable

Low

Duration

Bond

...........................................................................................

312

Sustainable

Total

Return

................................................................................................

1,553

Fund

Name

Institutional

Investor

A

Class

K

Sustainable

High

Yield

Bond

..........................................................................

0.58‌%

0.83‌%

0.53‌%

Sustainable

Low

Duration

Bond

........................................................................

0.40‌

0.65‌

0.35‌

Sustainable

Total

Return

.............................................................................

0.44‌

0.75‌

0.39‌

Fund

Name

Fees

waived

and/or

Reimbursed

by

the

Manager

Sustainable

High

Yield

Bond

...................................................................................................

$

207,431

Sustainable

Low

Duration

Bond

.................................................................................................

110,059

Sustainable

Total

Return

......................................................................................................

182,686

Fund

Name

Amounts

Sustainable

High

Yield

Bond

...................................................................................................

$

8,983

Sustainable

Low

Duration

Bond

.................................................................................................

9,765

Sustainable

Total

Return

......................................................................................................

8,812

Notes

to

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

74

In

addition,

these

amounts

waived

and/or

reimbursed

by

the

Manager are

included

in administration

fees

waived

by

the

Manager

—

class

specific

and

transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific,

respectively,

in

the

Statements

of

Operations.

For

the

six

months ended

March

31,

2023,

class

specific

expense

waivers

and/or

reimbursements were

as

follows: 

With

respect

to

the

contractual

expense

limitation,

if

during

a

Fund’s

fiscal

year

the

operating

expenses

of

a

share

class,

that

at

any

time

during

the

prior

two

fiscal

years

received

a

waiver

and/or

reimbursement

from

the

Manager,

are

less

than

the

current

expense

limitation

for

that

share

class,

the

Manager

is

entitled

to

be

reimbursed

by

such

share

class

up

to

the

lesser

of:

(a)

the

amount

of

fees

waived

and/or

expenses

reimbursed

during

those

prior

two

fiscal

years

under

the

agreement

and

(b)

an

amount

not

to

exceed

either

the

current

expense

limitation

of

that

share

class

or

the

expense

limitation

of

the

share

class

in

effect

at

the

time

that

the

share

class

received

the

applicable

waiver

and/or

reimbursement,

provided

that:

(1)

each

Fund,

of

which

the

share

class

is

a

part,

has

more

than

$50

million

in

assets

for

the

fiscal

year,

and  

(2)

the

Manager

or

an

affiliate

continues

to

serve

as

a

Fund’s

investment

adviser

or

administrator.

This

repayment

applies

only

to

the

contractual

expense

limitation

on

net

expenses

and

does

not

apply

to

the

contractual

investment

advisory

fee

waiver

described

above

or

any

voluntary

waivers

that

may

be

in

effect

from

time

to

time.

Effective

July

22,

2028,

the

repayment

arrangement

between

Sustainable

High

Yield

Bond

and

the

Manager

pursuant

to

which

such

Fund

may

be

required

to

repay

amounts

waived

and/or

reimbursed

under the

Fund’s

contractual

caps

on

net

expenses

will

be

terminated.

Effective

October

19,

2028,

the

repayment

arrangement

between

Sustainable

Low

Duration

Bond

and

Sustainable

Total

Return

and

the

Manager

pursuant

to

which

such

Fund

may

be

required

to

repay

amounts

waived

and/or

reimbursed

under

each

Fund's

contractual

caps

on

net

expenses

will

be

terminated.

As

of March

31,

2023,

the

fund

level

and

class

specific

waivers

and/or

reimbursements

subject

to

possible

future

recoupment

under

the

expense

limitation

agreement

are

as

follows:  

Interfund

Lending:

In

accordance

with

an

exemptive

order

(the

“Order”)

from

the

U.S.

Securities

and

Exchange

Commission

(“SEC”),

each

Fund

may

participate

in

a

joint

lending

and

borrowing

facility

for

temporary

purposes

(the

“Interfund

Lending

Program”),

subject

to

compliance

with

the

terms

and

conditions

of

the

Order,

and

to

the

extent

permitted

by each

Fund’s

investment

policies

and

restrictions. Each

Fund

is

currently

permitted

to

borrow

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

Fund

Name/Share

Class

Administration

Fees

Waived

by

the

Manager

-

Class

Specific

Transfer

Agent

Fees

Waived

and/or

Reimbursed

by

the

Manager

-

Class

Specific

Sustainable

High

Yield

Bond

Institutional

....................................................................................

$

4‌

$

—‌

Investor

A

.....................................................................................

4‌

2‌

Class

K

......................................................................................

4,210‌

66‌

$

4,218‌

$

68‌

Sustainable

Low

Duration

Bond

Institutional

....................................................................................

3‌

—‌

Investor

A

.....................................................................................

5‌

—‌

Class

K

......................................................................................

4,575‌

59‌

$

4,583‌

$

59‌

Sustainable

Total

Return

Institutional

....................................................................................

4‌

—‌

Class

K

......................................................................................

4,129‌

60‌

$

4,133‌

$

60‌

Expiring

September

30,

2023

2024

2025

Sustainable

High

Yield

Bond

.........................................................

Fund

Level

...................................................................

$

132,183‌

$

419,665‌

$

216,414‌

Institutional

...................................................................

64‌

246‌

4‌

Investor

A

....................................................................

64‌

246‌

6‌

Class

K

......................................................................

1,977‌

9,456‌

4,276‌

Sustainable

Low

Duration

Bond

Fund

Level

...................................................................

—‌

300,554‌

119,824‌

Institutional

...................................................................

—‌

229‌

3‌

Investor

A

....................................................................

—‌

221‌

5‌

Class

K

......................................................................

—‌

9,414‌

4,634‌

Sustainable

Total

Return

Fund

Level

...................................................................

—‌

381,248‌

191,498‌

Institutional

...................................................................

—‌

231‌

4‌

Investor

A

....................................................................

—‌

187‌

—‌

Class

K

......................................................................

—‌

9,014‌

4,18

9‌

Notes

to

Financial

Statements

(unaudited)

(continued)

75

Notes

to

Financial

Statements

purposes

and

the

interest

rate

to

be

charged

will

be

the

average

of

the

highest

current

overnight

repurchase

agreement

rate

available

to

a

lending

fund

and

the

bank

loan

rate,

as

calculated

according

to

a

formula

established

by

the

Board. 

During

the six

months

ended

March

31,

2023,

the

Funds

did

not

participate

in

the

Interfund

Lending

Program.

Directors

and

Officers:

Certain

directors

and/or

officers

of

the Corporation

and

the

Trust are directors and/or

officers

of BlackRock

or

its

affiliates.

The

Funds

reimburse

the

Manager

for

a

portion

of

the

compensation

paid

to

the 

Funds’

Chief

Compliance

Officer,

which

is

included

in 

Directors

 and

Officer

in

the

Statements

of

Operations. 

7.

PURCHASES

AND

SALES 

For

the six

months ended

March

31,

2023,

purchases

and

sales

of

investments,

including

paydowns,

mortgage

dollar

rolls and

excluding

short-term

securities,

were

as

follows:

For

the six

months ended

March

31,

2023,

purchases

and

sales

related

to

mortgage

dollar

rolls

were

as

follows:

8.

INCOME

TAX

INFORMATION 

It

is

each

Fund’s

policy

to

comply

with

the

requirements

of

the

Internal

Revenue

Code

of

1986,

as

amended,

applicable

to

regulated

investment

companies,

and

to

distribute

substantially

all

of

its

taxable

income

to

its

shareholders.

Therefore,

no

U.S.

federal

income

tax

provision

is

required. 

Each Fund

files

U.S.

federal

and

various

state

and

local

tax

returns.

No

income

tax

returns

are

currently

under

examination.

The

statute

of

limitations

on

each

Fund’s

U.S.

federal

tax

returns

generally

remains

open

for

a

period

of

three

years

after

they

are

filed.

The

statutes

of

limitations

on

each

Fund’s

state

and

local

tax

returns

may

remain

open

for

an

additional

year

depending

upon

the

jurisdiction. 

Management

has

analyzed

tax

laws

and

regulations

and

their

application

to

the Funds

as

of

March

31,

2023,

inclusive

of

the

open

tax

return

years,

and

does

not

believe

that

there

are

any

uncertain

tax

positions

that

require

recognition

of

a

tax

liability

in

the

Funds’

financial

statements.

As

of

September

30,

2022, the

Funds

had

non-expiring

capital

loss

carryforwards

available

to

offset

future

realized

capital

gains

as

follows: 

As

of

March

31,

2023, gross

unrealized

appreciation

and

depreciation

based

on

cost

of

investments

(including

short

positions

and

derivatives,

if

any)

for

U.S.

federal

income

tax

purposes

were

as

follows: 

9.

BANK

BORROWINGS 

The

Corporation

and

the

Trust,

on

behalf

of

the

Funds,

along

with

certain

other

funds

managed

by

the

Manager

and

its

affiliates

(“Participating

Funds”),

is party

to

a

364-day,

$2.50

billion

credit

agreement

with

a

group

of

lenders.

Under

this

agreement,

the

Funds

may

borrow

to

fund

shareholder

redemptions.

Excluding

commitments

designated

for

certain

individual

funds,

the

Participating

Funds,

including

the

Funds,

can

borrow

up

to

an

aggregate

commitment

amount

of

$1.75

billion

at

any

time

outstanding,

subject

to

asset

coverage

and

other

limitations

as

specified

in

the

agreement.

The

credit

agreement

has

the

following

terms:

a

fee

of

0.10%

per

annum

on

unused

commitment

amounts

and

interest

at

a

rate

equal

to

the

higher

of

(a)

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

or

(b)

the

Fed

Funds

rate

(but,

in

any

event,

not

less

than

0.00%)

in

effect

from

time

to

time

plus

0.80%

per

annum

on

amounts

borrowed

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

U.S.

Government

Securities

Other

Securities

Fund

Name

Purchases

Sales

Purchases

Sales

Sustainable

High

Yield

Bond

..............................................

$

—‌

$

—‌

$

7,851,722‌

$

7,452,114‌

Sustainable

Low

Duration

Bond

............................................

22,789,039‌

22,194,617‌

23,784,352‌

25,997,469‌

Sustainable

Total

Return

.................................................

11,588,673‌

4,567,801‌

110,622,264‌

115,971,496‌

Fund

Name

Purchases

Sales

Sustainable

Low

Duration

Bond

............................................................................

$

5,136,983‌

$

5,139,912‌

Sustainable

Total

Return

.................................................................................

45,867,186‌

45,859,375‌

Fund

Name

Non-expiring

Capital

Loss

Carryforwards

Sustainable

High

Yield

Bond

................................................................................................

$

1,711,104‌

Sustainable

Low

Duration

Bond

..............................................................................................

375,651‌

Sustainable

Total

Return

...................................................................................................

3,162,757‌

Fund

Name

Tax

Cost

Gross

Unrealized

Appreciation

Gross

Unrealized

Depreciation

Net

Unrealized

Appreciation

(Depreciation)

Sustainable

High

Yield

Bond

..........................................

$

46,664,130‌

$

102,536‌

$

(4,031,092‌)

$

(3,928,556‌)

Sustainable

Low

Duration

Bond

........................................

48,562,692‌

293,745‌

(2,135,503‌)

(1,841,758‌)

Sustainable

Total

Return

............................................

57,456,934‌

358,657‌

(3,672,159‌)

(3,313,502‌)

Notes

to

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

76

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

March

31,

2023,

the

Funds

did

not

borrow

under

the

credit

agreement.

10.

 PRINCIPAL

RISKS 

In

the

normal

course

of

business, the

Funds

invest

in

securities

or

other

instruments

and

may

enter

into

certain

transactions,

and

such

activities

subject

each

Fund

to

various

risks,

including

among

others,

fluctuations

in

the

market

(market

risk)

or

failure

of

an

issuer

to

meet

all

of

its

obligations.

The

value

of

securities

or

other

instruments

may

also

be

affected

by

various

factors,

including,

without

limitation:

(i)

the

general

economy;

(ii)

the

overall

market

as

well

as

local,

regional

or

global

political

and/or

social

instability;

(iii)

regulation,

taxation

or

international

tax

treaties

between

various

countries;

or

(iv)

currency,

interest

rate

and

price

fluctuations.

Local,

regional

or

global

events

such

as

war,

acts

of

terrorism,

the

spread

of

infectious

illness

or

other

public

health

issues,

recessions,

or

other

events

could

have

a

significant

impact

on

the

Funds

and their

investments.

Each

Fund’s

prospectus

provides

details

of

the

risks

to

which

each

Fund

is

subject. 

Market

Risk

:

Each

Fund

may

be

exposed

to

prepayment

risk,

which

is

the

risk

that

borrowers

may

exercise

their

option

to

prepay

principal

earlier

than

scheduled

during

periods

of

declining

interest

rates,

which

would

force

each

Fund

to

reinvest

in

lower

yielding

securities. Each

Fund

may

also

be

exposed

to

reinvestment

risk,

which

is

the

risk

that

income

from

each

Fund’s

portfolio

will

decline

if

each

Fund

invests

the

proceeds

from

matured,

traded

or

called

fixed-income

securities

at

market

interest

rates

that

are

below

each

Fund

portfolio’s

current

earnings

rate.

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.

Infectious

Illness

Risk:

An

outbreak

of

an

infectious

illness,

such

as

the

COVID-19

pandemic,

may

adversely

impact

the

economies

of

many

nations

and

the

global

economy,

and

may

impact

individual

issuers

and

capital

markets

in

ways

that

cannot

be

foreseen.

An

infectious

illness

outbreak

may

result

in,

among

other

things,

closed

international

borders,

prolonged

quarantines,

supply

chain

disruptions,

market

volatility

or

disruptions

and

other

significant

economic,

social

and

political

impacts.

Valuation

Risk:

The

market

values

of

equities,

such

as

common

stocks

and

preferred

securities

or

equity

related

investments,

such

as

futures

and

options,

may

decline

due

to

general

market

conditions

which

are

not

specifically

related

to

a

particular

company.

They

may

also

decline

due

to

factors

which

affect

a

particular

industry

or

industries. A

Fund

may

invest

in

illiquid

investments.

An

illiquid

investment

is

any

investment

that a

Fund

reasonably

expects

cannot

be

sold

or

disposed

of

in

current

market

conditions

in

seven

calendar

days

or

less

without

the

sale

or

disposition

significantly

changing

the

market

value

of

the

investment. A

Fund

may

experience

difficulty

in

selling

illiquid

investments

in

a

timely

manner

at

the

price

that it

believes

the

investments

are

worth.

Prices

may

fluctuate

widely

over

short

or

extended

periods

in

response

to

company,

market

or

economic

news.

Markets

also

tend

to

move

in

cycles,

with

periods

of

rising

and

falling

prices.

This

volatility

may

cause

each

Fund’s

NAV

to

experience

significant

increases

or

decreases

over

short

periods

of

time.

If

there

is

a

general

decline

in

the

securities

and

other

markets,

the

NAV

of a

Fund

may

lose

value,

regardless

of

the

individual

results

of

the

securities

and

other

instruments

in

which a

Fund

invests. 

The

price a

Fund

could

receive

upon

the

sale

of

any

particular

portfolio

investment

may

differ

from a

Fund’s

valuation

of

the

investment,

particularly

for

securities

that

trade

in

thin

or

volatile

markets

or

that

are

valued

using

a

fair

valuation

technique

or

a

price

provided

by

an

independent

pricing

service.

Changes

to

significant

unobservable

inputs

and

assumptions

(i.e.,

publicly

traded

company

multiples,

growth

rate,

time

to

exit)

due

to

the

lack

of

observable

inputs

may

significantly

impact

the

resulting

fair

value

and

therefore a

Fund’s

results

of

operations.

As

a

result,

the

price

received

upon

the

sale

of

an

investment

may

be

less

than

the

value

ascribed

by a

Fund,

and a

Fund

could

realize

a

greater

than

expected

loss

or

lesser

than

expected

gain

upon

the

sale

of

the

investment.

A

Fund’s

ability

to

value

its

investments

may

also

be

impacted

by

technological

issues

and/or

errors

by

pricing

services

or

other

third-party

service

providers. 

Counterparty

Credit

Risk:

The

Funds

may

be

exposed

to

counterparty

credit

risk,

or

the

risk

that

an

entity

may

fail

to

or

be

unable

to

perform

on

its

commitments

related

to

unsettled

or

open

transactions,

including

making

timely

interest

and/or

principal

payments

or

otherwise

honoring

its

obligations.

The

Funds

manage

counterparty

credit

risk

by

entering

into

transactions

only

with

counterparties

that

the

Manager

believes

have

the

financial

resources

to

honor

their

obligations

and

by

monitoring

the

financial

stability

of

those

counterparties.

Financial

assets,

which

potentially

expose

the

Funds

to

market,

issuer

and

counterparty

credit

risks,

consist

principally

of

financial

instruments

and

receivables

due

from

counterparties.

The

extent

of

the

Funds’

exposure

to

market,

issuer

and

counterparty

credit

risks

with

respect

to

these

financial

assets

is

approximately

their

value

recorded

in

the

Statements

of

Assets

and

Liabilities,

less

any

collateral

held

by

the

Funds. 

A

derivative

contract

may

suffer

a

mark-to-market

loss

if

the

value

of

the

contract

decreases

due

to

an

unfavorable

change

in

the

market

rates

or

values

of

the

underlying

instrument.

Losses

can

also

occur

if

the

counterparty

does

not

perform

under

the

contract.

For

OTC

options

purchased,

each

Fund

bears

the

risk

of

loss

in

the

amount

of

the

premiums

paid

plus

the

positive

change

in

market

values

net

of

any

collateral

held

by

the

Funds

should

the

counterparty

fail

to

perform

under

the

contracts.

Options

written

by

the

Funds

do

not

typically

give

rise

to

counterparty

credit

risk,

as

options

written

generally

obligate

the

Funds,

and

not

the

counterparty,

to

perform.

The

Funds

may

be

exposed

to

counterparty

credit

risk

with

respect

to

options

written

to

the

extent

each

Fund

deposits

collateral

with

its

counterparty

to

a

written

option. 

With

exchange-traded

options

purchased,

exchange-traded

futures

and

centrally

cleared

swaps,

there

is

less

counterparty

credit

risk

to

the

Funds

since

the

exchange

or

clearinghouse,

as

counterparty

to

such

instruments,

guarantees

against

a

possible

default.

The

clearinghouse

stands

between

the

buyer

and

the

seller

of

the

contract;

therefore,

credit

risk

is

limited

to

failure

of

the

clearinghouse.

While

offset

rights

may

exist

under

applicable

law, a

Fund

does

not

have

a

contractual

right

of

offset

against

a

clearing

broker

or

clearinghouse

in

the

event

of

a

default

(including

the

bankruptcy

or

insolvency).

Additionally,

credit

risk

exists

in exchange-traded

futures

and

centrally

cleared

swaps

with

respect

to

initial

and

variation

margin

that

is

held

in

a

clearing

broker’s

customer

accounts.

While

clearing

brokers

are

required

to

segregate

customer

Notes

to

Financial

Statements

(unaudited)

(continued)

77

Notes

to

Financial

Statements

margin

from

their

own

assets,

in

the

event

that

a

clearing

broker

becomes

insolvent

or

goes

into

bankruptcy

and

at

that

time

there

is

a

shortfall

in

the

aggregate

amount

of

margin

held

by

the

clearing

broker

for

all

its

clients,

typically

the

shortfall

would

be

allocated

on

a

pro

rata

basis

across

all

the

clearing

broker’s

customers,

potentially

resulting

in

losses

to

the

Funds. 

Concentration

Risk:

 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

each Fund’s

portfolio

are

disclosed

in

its Schedule

of

Investments.

Certain

Funds

invest

a

significant

portion

of their

assets

in

high

yield

securities.

High

yield

securities

that

are

rated

below

investment-grade

(commonly

referred

to

as

“junk

bonds”)

or

are

unrated

may

be

deemed

speculative,

involve

greater

levels

of

risk

than

higher-rated

securities

of

similar

maturity

and

are

more

likely

to

default.

High

yield

securities

may

be

issued

by

less

creditworthy

issuers,

and

issuers

of

high

yield

securities

may

be

unable

to

meet

their

interest

or

principal

payment

obligations.

High

yield

securities

are

subject

to

extreme

price

fluctuations,

may

be

less

liquid

than

higher

rated

fixed-income

securities,

even

under

normal

economic

conditions,

and

frequently

have

redemption

features.

Certain Funds

invest

a

significant

portion

of

their

assets

in fixed-income securities and/or use

derivatives tied

to

the

fixed-income

markets.

Changes

in

market

interest

rates

or

economic

conditions

may affect

the

value

and/or

liquidity

of

such investments.

Interest

rate

risk

is

the

risk

that

prices

of

bonds

and

other

fixed-income

securities

will

decrease

as

interest

rates

rise

and

increase

as

interest

rates

fall.

The

Funds

may

be

subject

to

a

greater

risk

of

rising

interest

rates

due

to

the

recent

period

of

historically

low

interest rates. The

Federal

Reserve

has

recently

begun

to

raise

the

federal

funds

rate

as

part

of

its

efforts

to

address

inflation.

There

is

a

risk

that

interest

rates

will

continue

to

rise,

which

will

likely

drive

down

the

prices

of

bonds

and

other

fixed-income

securities,

and

could

negatively

impact certain

Funds’

performance.

Certain

Funds

invest

a

significant

portion

of their

assets

in

securities

backed

by

commercial

or

residential

mortgage

loans

or

in

issuers

that

hold

mortgage

and

other

asset-

backed

securities.

When

a

Fund

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

Schedules

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

a

fund

to

sell

portfolio

securities,

which

may

negatively

impact

the

fund’s

NAV,

increase

the

fund’s

brokerage

costs,

and/or

accelerate

the

realization

of

taxable

income/gains

and

cause

the

fund

to

make

additional

taxable

distributions

to

shareholders.

LIBOR

Transition

Risk:

The

Funds

may

be

exposed

to

financial

instruments

that

are

tied

to

LIBOR

to

determine

payment

obligations,

financing

terms,

hedging

strategies

or

investment

value.

The

United

Kingdom’s

Financial

Conduct

Authority,

which

regulates

LIBOR,

announced

that

a

majority

of

USD

LIBOR

settings

will

no

longer

be

published

after

June

30,

2023.

All

other

LIBOR

settings

and

certain

other

interbank

offered

rates

ceased

to

be

published

after

December

31,

2021.

SOFR

has

been

used

increasingly

on

a

voluntary

basis

in

new

instruments

and

transactions.

The

Federal

Reserve

Board

adopted

regulations

that

provide

a

fallback

mechanism

by

identifying

benchmark

rates

on

SOFR

that

will

replace

LIBOR

in

certain

financial

products

after

June

30,

2023.

The

ultimate

effect

of

the

LIBOR

transition

process

on

the

Funds

is

uncertain.

11.

CAPITAL

SHARE

TRANSACTIONS 

Transactions

in

capital

shares

for

each

class

were

as

follows:

d

Six

Months

Ended

03/31/23

Year

Ended

09/30/22

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

Sustainable

High

Yield

Bond

Institutional

Shares

sold

..........................................

71‌

$

600‌

184‌

$

1,599‌

Shares

issued

in

reinvestment

of

distributions

.....................

6‌

54‌

3‌

26‌

77‌

$

654‌

187‌

$

1,625‌

Investor

A

Shares

sold

..........................................

—‌

$

—‌

283‌

$

2,587‌

Shares

issued

in

reinvestment

of

distributions

.....................

8‌

67‌

6‌

51‌

8‌

$

67‌

289‌

$

2,638‌

85‌

$

721‌

476‌

$

4,263‌

d

Six

Months

Ended

03/31/23

Period

from

10/18/21

(a)

to

09/30/22

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

Sustainable

Low

Duration

Bond

Institutional

Shares

sold

..........................................

—‌

$

—‌

10,001‌

$

100,010‌

Shares

redeemed

......................................

—‌

—‌

(1‌)

(10‌)

—‌

$

—‌

10,000‌

$

100,000‌

Notes

to

Financial

Statements

(unaudited)

(continued)

2023

BlackRock

Semi-Annual

Report

to

Shareholders

78

(a)

Commencement

of

operations.

As

of

March

31,

2023,

shares

owned

by

BlackRock

Financial

Management,

Inc.,

an

affiliate

of

the

Funds,

were

as

follows:

12.

SUBSEQUENT

EVENTS 

Management’s

evaluation

of

the

impact

of

all

subsequent

events

on

the

Funds’

financial

statements

was

completed

through

the

date

the

financial

statements

were

issued

and

the

following

items

were

noted:

Effective

April

13,

2023,

the

credit

agreement

was

extended

until

April

2024

under

the

same

terms.

d

Six

Months

Ended

03/31/23

Period

from

10/18/21

(a)

to

09/30/22

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

Investor

A

Shares

sold

..........................................

—‌

$

—‌

21,953‌

$

216,401‌

Shares

issued

in

reinvestment

of

distributions

.....................

59‌

542‌

62‌

594‌

Shares

redeemed

......................................

—‌

—‌

(10,111‌)

(96,014‌)

59‌

$

542‌

11,904‌

$

120,981‌

Class

K

Shares

sold

..........................................

329‌

$

3,000‌

4,980,008‌

$

49,800,077‌

Shares

issued

in

reinvestment

of

distributions

.....................

1‌

7‌

—‌

—‌

Shares

redeemed

......................................

—‌

—‌

(8‌)

(116‌)

330‌

$

3,007‌

4,980,000‌

$

49,799,961‌

389‌

$

3,549‌

5,001,904‌

$

50,020,942‌

Sustainable

Total

Return

Institutional

Shares

sold

..........................................

—‌

$

—‌

10,001‌

$

100,010‌

Shares

redeemed

......................................

—‌

—‌

(1‌)

(10‌)

—‌

$

—‌

10,000‌

$

100,000‌

Investor

A

Shares

sold

..........................................

2‌

$

18‌

11,178‌

$

111,490‌

Shares

issued

in

reinvestment

of

distributions

.....................

36‌

299‌

15‌

133‌

Shares

redeemed

......................................

(2‌)

(15‌)

(1‌)

(10‌)

36‌

$

302‌

11,192‌

$

111,613‌

Class

K

Shares

sold

..........................................

—‌

$

—‌

4,980,001‌

$

49,800,011‌

Shares

redeemed

......................................

—‌

—‌

(1‌)

(10‌)

—‌

$

—‌

4,980,000‌

$

49,800,001‌

36‌

$

302‌

5,001,192‌

$

50,011,614‌

Institutional

Investor

A

Class

K

Sustainable

High

Yield

Bond

$

10,000‌

$

10,000‌

$

4,980,000‌

Sustainable

Low

Duration

Bond

10,000‌

10,000‌

4,980,000‌

Sustainable

Total

Return

10,000‌

10,000‌

4,980,000‌

Statement

Regarding

Liquidity

Risk

Management

Program

79

Statement

Regarding

Liquidity

Risk

Management

Program

In

compliance

with

Rule

22e-4

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“Liquidity

Rule”),

BlackRock

Funds

V

(the

“Trust”)

and

BlackRock

Bond

Fund,

Inc.

(the

“Corporation”)

has

adopted

and

implemented

a

liquidity

risk

management

program

(the

“Program”)

for

the

BlackRock

Sustainable

High

Yield

Bond

Fund,

BlackRock

Sustainable

Low

Duration

Bond

Fund

and

BlackRock

Sustainable

Total

Return

Fund

(the

“Funds”),

each

a

series

of

the

Trust

or

the

Corporation,

which

is

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk.

The

Board

of

Trustees

of

the

Trust

and

the

Board

of

Directors

of

Corporation

(together,

the

“Board”),

on

behalf

of

the

Funds,

met

on

November

10-11,

2022

(the

“Meeting”)

to

review

the

Program.

The

Board

previously

appointed

BlackRock

Advisors,

LLC,

the

investment

adviser

to

each

Fund,

as

the

program

administrator

for

each

Fund’s

Program.

BlackRock

also

previously

delegated

oversight

of

the

Program

to

the

40

Act

Liquidity

Risk

Management

Committee

(the

“Committee”).

At

the

Meeting,

the

Committee,

on

behalf

of

BlackRock,

provided

the

Board

with

a

report

that

addressed

the

operation

of

the

Program

and

assessed

its

adequacy

and

effectiveness

of

implementation,

including

the

management

of

each

Fund’s

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

and

any

material

changes

to

the

Program

(the

“Report”).

The

Report

covered

the

period

from

October

1,

2021

through

September

30,

2022

(the

“Program

Reporting

Period”).

The

Report

described

the

Program’s

liquidity

classification

methodology

for

categorizing

each

Fund’s

investments

(including

derivative

transactions)

into

one

of

four

liquidity

buckets.

It

also

referenced

the

methodology

used

by

BlackRock

to

establish

each

Fund’s

HLIM

and

noted

that

the

Committee

reviews

and

ratifies

the

HLIM

assigned

to

each

Fund

no

less

frequently

than

annually.

The

Report

also

discussed

notable

events

affecting

liquidity

over

the

Program

Reporting

Period,

including

the

imposition

of

capital

controls

in

certain

countries.

The

Report

noted

that

the

Program

complied

with

the

key

factors

for

consideration

under

the

Liquidity

Rule

for

assessing,

managing

and

periodically

reviewing

each

Fund’s

liquidity

risk,

as

follows:

a)

The

Fund’s

investment

strategy

and

liquidity

of

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions

.

During

the

Program

Reporting

Period,

the

Committee

reviewed

whether

each

Fund’s

strategy

is

appropriate

for

an

open-end

fund

structure

with

a

focus

on

funds

with

more

significant

and

consistent

holdings

of

less

liquid

and

illiquid

assets.

The

Committee

also

factored

a

fund’s

concentration

in

an

issuer

into

the

liquidity

classification

methodology

by

taking

issuer

position

sizes

into

account.

Where

a

fund

participated

in

borrowings

for

investment

purposes

(such

as

tender

option

bonds

or

reverse

repurchase

agreements),

such

borrowings

were

factored

into

the

Program’s

calculation

of

a

fund’s

liquidity

bucketing.

A

fund’s

derivative

exposure

was

also

considered

in

such

calculation.

b)

Short-term

and

long-term

cash

flow

projections

during

both

normal

and

reasonably

foreseeable

stressed

conditions

.

During

the

Program

Reporting

Period,

the

Committee

reviewed

historical

redemption

activity

and

used

this

information

as

a

component

to

establish

each

Fund’s

reasonably

anticipated

trading

size

utilized

for

liquidity

classifications.

Each

Fund

has

adopted

an

in-kind

redemption

policy

which

may

be

utilized

to

meet

larger

redemption

requests.

The

Committee

may

also

take

into

consideration

a

fund’s

shareholder

ownership

concentration

(which,

depending

on

product

type

and

distribution

channel,

may

or

may

not

be

available),

a

fund’s

distribution

channels,

and

the

degree

of

certainty

associated

with

a

fund’s

short-term

and

long-term

cash

flow

projections.

c)

Holdings

of

cash

and

cash

equivalents,

as

well

as

borrowing

arrangements

.

The

Committee

considered

the

terms

of

the

credit

facility

committed

to

each

Fund,

the

financial

health

of

the

institution

providing

the

facility

and

the

fact

that

the

credit

facility

is

shared

among

multiple

funds

(including

that

a

portion

of

the

aggregate

commitment

amount

is

specifically

designated

for

BlackRock

Floating

Rate

Income

Portfolio,

a

series

of

BlackRock

Funds

V,

and

BlackRock

Floating

Rate

Loan

ETF,

a

series

of

BlackRock

ETF

Trust

II).

The

Committee

also

considered

other

types

of

borrowing

available

to

the

funds,

such

as

the

ability

to

use

reverse

repurchase

agreements

and

interfund

lending,

as

applicable.

There

were

no

material

changes

to

the

Program

during

the

Program

Reporting

Period

other

than

the

enhancement

of

certain

model

components

in

the

Program’s

classification

methodology.

The

Report

provided

to

the

Board

stated

that

the

Committee

concluded

that

based

on

the

operation

of

the

functions,

as

described

in

the

Report,

the

Program

is

operating

as

intended

and

is

effective

in

implementing

the

requirements

of

the

Liquidity

Rule.

Additional

Information

2023

BlackRock

Semi-Annual

Report

to

Shareholders

80

General

Information 

Quarterly

performance,

semi-annual

and

annual

reports,

current

net

asset

value

and

other

information

regarding

the

Funds

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

Funds

and

does

not,

and

is

not

intended

to,

incorporate

BlackRock’s

website

in

this

report.

Householding

The

Funds

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

Funds at

(800)

441-7762.

Availability

of

Quarterly

Schedule

of

Investments

The

Funds

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

Funds’

Forms

N-PORT are

available

on

the

SEC’s

website

at

sec.gov

.

Additionally,

each

Fund

makes

its

portfolio

holdings

for

the

first

and

third

quarters

of

each

fiscal

year

available

at

blackrock.com/fundreports

.

Availability

of

Proxy

Voting

Policies,

Procedures

and

Voting

Records

A

description

of

the

policies

and

procedures

that

the

Funds

use

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

information

about

how

the

Funds

voted

proxies

relating

to

securities

held

in

the

Funds'

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.

Additional

Information

(continued)

81

Additional

Information

BlackRock

Privacy

Principles

BlackRock

is

committed

to

maintaining

the

privacy

of

its

current

and

former

fund

investors

and

individual

clients

(collectively,

“Clients”)

and

to

safeguarding

their

non-public

personal

information.

The

following

information

is

provided

to

help

you

understand

what

personal

information

BlackRock

collects,

how

we

protect

that

information

and

why

in

certain

cases

we

share

such

information

with

select

parties.

If

you

are

located

in

a

jurisdiction

where

specific

laws,

rules

or

regulations

require

BlackRock

to

provide

you

with

additional

or

different

privacy-related

rights

beyond

what

is

set

forth

below,

then

BlackRock

will

comply

with

those

specific

laws,

rules

or

regulations.

BlackRock

obtains

or

verifies

personal

non-public

information

from

and

about

you

from

different

sources,

including

the

following:

(i)

information

we

receive

from

you

or,

if

applicable,

your

financial

intermediary,

on

applications,

forms

or

other

documents;

(ii)

information

about

your

transactions

with

us,

our

affiliates,

or

others;

(iii)

information

we

receive

from

a

consumer

reporting

agency;

and

(iv)

from

visits

to

our

websites.

BlackRock

does

not

sell

or

disclose

to

non-affiliated

third

parties

any

non-public

personal

information

about

its

Clients,

except

as

permitted

by

law

or

as

is

necessary

to

respond

to

regulatory

requests

or

to

service

Client

accounts.

These

non-affiliated

third

parties

are

required

to

protect

the

confidentiality

and

security

of

this

information

and

to

use

it

only

for

its

intended

purpose.

We

may

share

information

with

our

affiliates

to

service

your

account

or

to

provide

you

with

information

about

other

BlackRock

products

or

services

that

may

be

of

interest

to

you.

In

addition,

BlackRock

restricts

access

to

non-public

personal

information

about

its

Clients

to

those

BlackRock

employees

with

a

legitimate

business

need

for

the

information.

BlackRock

maintains

physical,

electronic

and

procedural

safeguards

that

are

designed

to

protect

the

non-public

personal

information

of

its

Clients,

including

procedures

relating

to

the

proper

storage

and

disposal

of

such

information.

Fund

and

Service

Providers

Investment

Adviser

and

Administrator

BlackRock

Advisors,

LLC

Wilmington,

DE

19809

Sub-Advisers

BlackRock

International

Limited

Edinburgh,

EH3

8BL

United

Kingdom

BlackRock

(Singapore)

Limited

(a)

079912

Singapore

Accounting

Agent

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Transfer

Agent

BNY

Mellon

Investment

Servicing

(US)

Inc.

Wilmington,

DE

19809

Custodian

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Independent

Registered

Public

Accounting

Firm

Deloitte

&

Touche

LLP

Boston,

MA

02116

Distributor

BlackRock

Investments,

LLC

New

York,

NY

10001

Legal

Counsel

Willkie

Farr

&

Gallagher

LLP

New

York,

NY

10019

Address

of

the

Trust

100

Bellevue

Parkway

Wilmington,

DE

19809

(a)

For

BlackRock

Sustainable

Low

Duration

Bond

Fund

and

BlackRock

Sustainable

Total

Return

Fund.

Glossary

of

Terms

Used

in

this

Report

2023

BlackRock

Semi-Annual

Report

to

Shareholders

82

Currency

Abbreviation

CAD

Canadian

Dollar

EUR

Euro

JPY

Japanese

Yen

USD

United

States

Dollar

Portfolio

Abbreviation

BA

Canadian

Bankers

Acceptances

CDI

Crest

Depository

Interests

CLO

Collateralized

Loan

Obligation

CSMC

Credit

Suisse

Mortgage

Capital

DAC

Designated

Activity

Company

ESTR

Euro

Short-Term

Rate

ETF

Exchange-Traded

Fund

EURIBOR

Euro

Interbank

Offered

Rate

GO

General

Obligation

Bonds

LIBOR

London

Interbank

Offered

Rate

MSCI

Morgan

Stanley

Capital

International

OTC

Over-the-counter

RB

Revenue

Bonds

REIT

Real

Estate

Investment

Trust

S&P

Standard

&

Poor's

SOFR

Secured

Overnight

Financing

Rate

SPDR

Standard

&

Poor’s

Depositary

Receipts

TBA

To-be-announced

TONAR

Tokyo

Overnight

Average

Rate

Want

to

know

more?

blackrock.com

|

800-441-7762

This

report

is

intended

for

current

holders.

It

is

not

authorized

for

use

as

an

offer

of

sale

or

a

solicitation

of

an

offer

to

buy

shares

of

the

Funds

unless

preceded

or

accompanied

by

the

Funds’

current

prospectus.

Past

performance

results

shown

in

this

report

should

not

be

considered

a

representation

of

future

performance.

Investment

returns

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Statements

and

other

information

herein

are

as

dated

and

are

subject

to

change.

SHYB-03/23-SAR

Item 2 –  Code of Ethics – Not Applicable to this semi-annual report

Item 3 –  Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 –  Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 –  Audit Committee of Listed Registrant – Not Applicable

Item 6 – Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 –

Disclosure of Securities Lending Activities for Closed-End Management Investment

   Companies

– Not Applicable                  

Item 13 – Exhibits attached hereto

              (a)(1) Code of Ethics – Not Applicable to this semi-annual report

              (a)(2) Section 302 Certifications are attached

section302

(a)(3)

Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(4)

Change in Registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached

section906

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Bond Fund, Inc.

By:     /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Bond Fund, Inc.

Date: May 24, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:     /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Bond Fund, Inc.

Date: May 24, 2023

By:     /s/ Trent Walker

          Trent Walker

Chief Financial Officer (principal financial officer) of

BlackRock Bond Fund, Inc.

Date: May 24, 2023