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: 09/30/2023
Item 1 – Report to Stockholders
(a) The Report to Shareholders is attached herewith.
(b) Not Applicable
September
30,
2023
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2023
Annual
Report
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,
The
combination
of
continued
economic
growth
and
moderating
inflation
provided
a
supportive
backdrop
for
investors
during
the
12-month
reporting
period
ended
September
30,
2023.
Significantly
tighter
monetary
policy
helped
to
rein
in
inflation
while
the
economy
proved
more
resilient
than
many
investors
anticipated.
A
moderating
labor
market
also
helped
ease
inflationary
pressure,
although
wages
continued
to
grow
and
unemployment
rates
touched
the
lowest
levels
in
decades.
This
robust
labor
market
powered
further
growth
in
consumer
spending,
backstopping
the
economy.
On
October
7,
2023,
Hamas
launched
a
horrific
attack
on
Israel.
The
ensuing
war
will
have
a
significant
humanitarian
impact
and
could
lead
to
heightened
economic
and
market
volatility.
We
see
geopolitics
as
a
structural
market
risk
going
forward.
See
our
geopolitical
risk
dashboard
at
blackrock.com
for
more
details.
Equity
returns
were
substantial,
as
the
durability
of
consumer
sentiment
and
spending
mitigated
investors’
concerns
about
the
economy’s
trajectory.
The
U.S.
economy
resumed
growth
in
the
third
quarter
of
2022
and
continued
to
expand
thereafter.
All
major
classes
of
equities
rose,
although
large-capitalization
U.S.
stocks
posted
significantly
higher
returns
than
small-capitalization
U.S.
stocks
due
primarily
to
the
performance
of
large
technology
companies.
International
developed
market
equities
also
advanced
strongly,
and
emerging
market
equities
posted
solid
gains.
The
10-year
U.S.
Treasury
yield
rose
during
the
reporting
period,
driving
its
price
down,
as
investors
reacted
to
elevated
inflation
and
attempted
to
anticipate
future
interest
rate
changes.
The
corporate
bond
market
benefited
from
improving
economic
sentiment,
although
high-yield
corporate
bond
prices
fared
significantly
better
than
investment-grade
bonds
as
demand
from
yield-seeking
investors
remained
strong.
The
U.S.
Federal
Reserve
(the
“Fed”),
attempting
to
manage
persistent
inflation,
raised
interest
rates
six
times
during
the
12-month
period.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
incrementally
reduced
its
balance
sheet
by
not
replacing
securities
that
reach
maturity.
However,
the
Fed
declined
to
raise
interest
rates
at
two
of
its
meetings
late
in
the
period.
Supply
constraints
appear
to
have
become
an
embedded
feature
of
the
new
macroeconomic
environment,
making
it
difficult
for
developed
economies
to
increase
production
without
sparking
higher
inflation.
Geopolitical
fragmentation
and
an
aging
population
risk
further
exacerbating
these
constraints,
keeping
the
labor
market
tight
and
wage
growth
high.
Although
the
Fed
has
decelerated
the
pace
of
interest
rate
hikes
and
recently
opted
for
two
pauses,
we
believe
that
the
new
economic
regime
means
that
the
Fed
will
need
to
maintain
high
rates
for
an
extended
period
to
keep
inflation
under
control.
Furthermore,
ongoing
structural
changes
may
mean
that
the
Fed
will
be
hesitant
to
cut
interest
rates
in
the
event
of
faltering
economic
activity
lest
inflation
accelerate
again.
We
believe
investors
should
expect
a
period
of
higher
volatility
as
markets
adjust
to
the
new
economic
reality
and
policymakers
attempt
to
adapt.
While
we
favor
an
overweight
position
in
developed
market
equities
in
the
long
term,
we
prefer
an
underweight
stance
in
the
near
term.
Expectations
for
corporate
earnings
remain
elevated,
which
seems
inconsistent
with
macroeconomic
constraints.
Nevertheless,
we
are
overweight
on
Japanese
stocks
in
the
near
term
as
shareholder-friendly
policies
generate
increased
investor
interest.
We
also
believe
that
stocks
with
an
AI
tilt
should
benefit
from
an
investment
cycle
that
is
set
to
support
revenues
and
margins.
In
credit,
there
are
selective
opportunities
in
the
near
term
despite
tightening
credit
and
financial
conditions.
For
fixed
income
investing
with
a
six-
to
twelve-month
horizon,
we
see
the
most
attractive
investments
in
short-term
U.S.
Treasuries,
U.S.
inflation-linked
bonds,
euro
area
government
bonds
and
gilts,
U.S.
mortgage-backed
securities,
and
hard-
currency
emerging
market
bonds.
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
September
30,
2023
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
5.18
%
21.62
%
U.S.
small
cap
equities
(Russell
2000
®
Index)
(0.19
)
8.93
)
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
(1.28
)
25.65
)
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(2.05
)
11.70
)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
2.50
4.47
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(6.98
)
(2.90
)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
(4.05
)
0.64
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
(4.05
)
2.66
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
2.22
10.28
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Fund
Summary
........................................................................................................
4
About
Fund
Performance
.................................................................................................
13
Disclosure
of
Expenses
...................................................................................................
14
Derivative
Financial
Instruments
.............................................................................................
14
Financial
Statements:
Schedules
of
Investments
...............................................................................................
15
Statements
of
Assets
and
Liabilities
.........................................................................................
53
Statements
of
Operations
................................................................................................
56
Statements
of
Changes
in
Net
Assets
........................................................................................
57
Financial
Highlights
.....................................................................................................
59
Notes
to
Financial
Statements
...............................................................................................
68
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
83
Important
Tax
Information
.................................................................................................
84
Disclosure
of
Investment
Advisory
Agreements
and
Sub-Advisory
Agreements
.................................................................
85
Director
and
Officer
Information
..............................................................................................
89
Additional
Information
....................................................................................................
92
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
94
Fund
Summary
as
of
September
30,
2023
2023
BlackRock
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
12-month
period
ended
September
30,
2023,
all
of
the
Fund’s
share
classes
underperformed
its
benchmark,
the
Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index.
What
factors
influenced
performance?
Security
selection
in
high
yield
bonds
detracted
from
performance.
Underweight
allocations
to
the
leisure
and
gaming
sectors
also
hurt
results,
as
did
an
overweight
position
in
cash.
Security
selection
among
B
rated
issues
was
an
additional
detractor
of
note.
On
the
positive
side,
the
Fund
benefited
from
its
overweight
in
bank
loans,
as
well
as
its
overweights
in
the
information
technology
and
metals
&
mining
sectors.
Underweights
in
the
media
&
entertainment
sectors
and
BB
rated
issues
also
helped
results.
BB
rated
bonds
tend
to
have
higher
interest
rate
sensitivity
than
the
market
as
a
whole,
which
was
a
headwind
in
the
environment
of
the
past
12
months.
Describe
recent
portfolio
activity.
The
Fund’s
allocation
to
investment-grade
bonds
increased,
as
the
investment
adviser
uncovered
attractive
relative
value
opportunities
in
this
area.
The
investment
adviser
increased
the
extent
of
the
Fund’s
underweight
in
BB
rated
bonds,
and
it
added
to
the
overweight
in
B
rated
issues.
Describe
portfolio
positioning
at
period
end.
The
Fund
was
underweight
in
BBs
and
overweight
in
Bs
and
CCCs.
It
remained
underweight
in
high
yield
bonds
to
fund
the
allocation
to
bank
loans
and
the
modest
weighting
in
investment-grade
corporate
bonds.
At
the
sector
level,
the
Fund
was
overweight
in
the
information
technology,
property
&
casualty,
and
wireline
telecommunications
sectors,
and
it
was
underweight
in
the
midstream
energy,
independent
energy,
and
retailers
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
September
30,
2023
(continued)
5
Fund
Summary
BlackRock
Sustainable
High
Yield
Bond
Fund
GROWTH
OF
$10,000
INVESTMENT
The
Fund
commenced
operations
on
July
22,
2021.
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.
(a)
Assuming
maximum
sales
charges,
if
any,
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional
Shares
do
not
have
a
sales
charge.
(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)
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.
Average
Annual
Total
Returns
(a)
1
Year
Since
Inception
(b)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
..................................................
7.77%
6.80%
9.40%
N/A
(2.72)%
N/A
Investor
A
...................................................
7.21
6.24
9.13
4.76%
(2.96)
(4.75)%
Class
K
....................................................
7.82
6.85
9.44
N/A
(2.68)
N/A
Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index
............
—
—
10.28
N/A
(2.18)
N/A
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees.
(b)
The
Fund
commenced
operations
on
July
22,
2021.
Fund
Summary
as
of
September
30,
2023
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
6
BlackRock
Sustainable
High
Yield
Bond
Fund
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Portfolio
Information
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(04/01/23)
Ending
Account
Value
(09/30/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(04/01/23)
Ending
Account
Value
(09/30/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00
$
1,011.60
$
2.92
$
1,000.00
$
1,022.16
$
2.94
0.58%
Investor
A
................................
1,000.00
1,010.30
4.18
1,000.00
1,020.91
4.20
0.83
Class
K
..................................
1,000.00
1,011.80
2.67
1,000.00
1,022.41
2.69
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
183/365
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
90.4
%
Floating
Rate
Loan
Interests
...........................
8.9
Common
Stocks
...................................
0.4
Preferred
Securities
.................................
0.3
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
A
.............................................
0.1
%
BBB/Baa
.......................................
4.2
BB/Ba
.........................................
41.0
B
............................................
46.0
CCC/Caa
.......................................
8.0
NR
...........................................
0.7
(a)
Excludes
short-term
securities.
(b)
For
financial
reporting
purposes,
credit
quality
ratings
shown
above
reflect
the
highest
rating
assigned
by
either
S&P
Global
Ratings
or
Moody’s
Investors
Service
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
September
30,
2023
7
Fund
Summary
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
12-month
period
ended
September
30,
2023,
all
of
the
Fund’s
share
classes
outperformed
its
benchmark,
the
ICE
BofA
1-3
Year
U.S.
Corporate
&
Government
Index.
What
factors
influenced
performance?
The
Fund’s
allocations
to
asset-backed
securities
(“ABS”),
investment-grade
corporate
bonds,
agency
mortgage-backed
securities
(“MBS”)
and
commercial
mortgage-
backed
securities
(“CMBS”)
contributed
to
performance.
(Duration
is
a
measure
of
interest
rate
sensitivity.)
The
Fund’s
yield
curve
and
duration
positioning
detracted
from
performance,
as
did
its
allocations
to
U.S.
Treasuries,
emerging
markets
debt
and
high
yield
bonds.
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
detracted
from
results.
The
Fund’s
cash
position
had
no
material
impact
on
performance.
Describe
recent
portfolio
activity.
The
Fund
began
the
period
with
a
long
duration
bias,
but
the
investment
adviser
shifted
to
a
short
duration
in
early
2023
on
the
belief
that
the
market
would
begin
to
price
in
more
interest
rate
increases
by
the
Fed.
By
the
second
quarter
of
2023,
cooling
inflation
and
slowing
economic
growth
prompted
the
investment
adviser
to
begin
increasing
duration
once
again.
The
Fund
was
long
duration
at
the
close
of
the
period.
Within
investment-grade
corporate
bonds,
the
investment
adviser
had
a
preference
for
larger,
well-capitalized
banks
in
the
financial
sector.
During
the
regional
banking
crisis
in
March
of
2023,
the
investment
adviser
used
the
widening
of
yields
spreads
in
financials
to
add
to
positions
in
larger
banks
at
cheaper
levels.
In
the
industrials
sector,
the
investment
adviser
added
to
both
consumer
cyclical
and
non-cyclical
sectors
on
the
belief
that
the
consumer
is
one
of
the
more
resilient
areas
of
the
U.S.
economy.
Within
securitized
assets,
the
Fund
added
meaningfully
to
ABS
on
the
view
that
the
category
appeared
inexpensive
relative
to
investment-grade
corporates.
The
investment
adviser
preferred
high-quality
consumer
sectors
such
as
prime
auto
loans,
credit
cards,
and
private
student
loans.
The
investment
adviser
also
tactically
adjusted
its
positioning
in
agency
MBS
to
capture
opportunities
created
by
volatility.
The
Fund
continued
to
add
to
the
category
throughout
the
third
calendar
quarter
of
2023
as
banks
offloaded
their
MBS
holdings,
leading
to
a
surplus
of
supply
and
creating
attractive
valuations.
The
investment
adviser
identified
the
most
attractive
opportunities
in
callable
ABS.
(A
callable
bond
is
a
bond
that
an
issuer
can
redeem
prior
to
its
maturity
date.)
The
CMBS
market
continued
to
experience
elevated
volatility
and
widening
yield
spreads
due
to
the
combination
of
higher
interest
rates,
office
vacancies,
and
the
instability
in
the
regional
banking
sector.
The
investment
adviser
maintained
a
negative
view
on
CMBS,
and
continued
to
reduce
the
Fund’s
weighting
in
this
area.
Within
the
category,
it
favored
multifamily
issues
higher
in
the
capital
structure.
It
also
had
a
preference
for
higher-quality
industrials
it
believed
could
be
more
resilient
in
a
recessionary
scenario.
The
investment
adviser
continued
to
avoid
the
commercial
office
space
due
to
challenges
such
as
high
vacancy
rates,
but
it
selectively
added
into
good
deals.
The
investment
adviser
identified
an
attractive
value
in
non-U.S.
dollar
investment-grade
green
bonds.
Unlike
a
debt
offering
from
a
company
that
presents
its
overall
operations
as
environmentally
friendly,
green
bond
proceeds
are
ring-fenced
on
the
issuer’s
balance
sheet
and
set
aside
for
the
exclusive
purpose
of
financing
one
or
more
projects
deemed
environmentally
beneficial.
The
investment
adviser
used
derivatives
to
shift
the
foreign
currency
exposure
of
these
holdings
back
into
U.S.
dollars.
Describe
portfolio
positioning
at
period
end.
The
Fund
was
positioned
with
a
long
duration
bias.
The
investment
adviser
remained
cautious
with
respect
to
market
segments
that
could
face
fundamental
pressure
due
to
the
effects
of
a
slowing
economy,
as
well
as
those
subject
to
unique
headwinds.
This
approach
resulted
in
lower
allocations
to
high
yield
issues,
emerging
market
bonds
and
CMBS.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Fund
Summary
as
of
September
30,
2023
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
8
BlackRock
Sustainable
Low
Duration
Bond
Fund
GROWTH
OF
$10,000
INVESTMENT
The
Fund
commenced
operations
on
October
18,
2021.
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.
(a)
Assuming
maximum
sales
charges,
if
any,
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional
Shares
do
not
have
a
sales
charge.
(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)
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.
Average
Annual
Total
Returns
(a)
1
Year
Since
Inception
(b)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
..................................................
4.78%
2.07%
3.40%
N/A
(1.57)%
N/A
Investor
A
...................................................
4.40
(2.28)
3.14
0.82%
(1.82)
(2.96)%
Class
K
....................................................
4.81
2.09
3.44
N/A
(1.54)
N/A
ICE
BofA
1-3
Year
U.S.
Corporate
&
Government
Index
..................
—
—
2.85
N/A
(1.14)
N/A
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees.
(b)
The
Fund
commenced
operations
on
October
18,
2021.
Fund
Summary
as
of
September
30,
2023
(continued)
9
Fund
Summary
BlackRock
Sustainable
Low
Duration
Bond
Fund
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(04/01/23)
Ending
Account
Value
(09/30/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(04/01/23)
Ending
Account
Value
(09/30/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00
$
1,003.80
$
2.01
$
1,000.00
$
1,023.06
$
2.03
0.40%
Investor
A
................................
1,000.00
1,002.50
3.26
1,000.00
1,021.81
3.29
0.65
Class
K
..................................
1,000.00
1,004.00
1.76
1,000.00
1,023.31
1.78
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
183/365
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
39.0
%
U.S.
Treasury
Obligations
.............................
21.8
Asset-Backed
Securities
..............................
19.7
U.S.
Government
Sponsored
Agency
Securities
..............
11.2
Non-Agency
Mortgage-Backed
Securities
..................
6.5
Foreign
Agency
Obligations
............................
1.8
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
AAA/Aaa
(c)
......................................
59.7
%
AA/Aa
.........................................
1.2
A
.............................................
17.4
BBB/Baa
.......................................
14.4
BB/Ba
.........................................
3.6
B
............................................
2.7
NR
...........................................
1.0
(a)
Excludes
short-term
securities,
options
purchased,
options
written
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.
Fund
Summary
as
of
September
30,
2023
2023
BlackRock
Annual
Report
to
Shareholders
10
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
12-month
period
ended
September
30,
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,
positions
in
structured
products
and
agency
mortgage-backed
securities
(“MBS”),
and
holdings
in
U.S.
and
European
investment-grade
corporate
bonds
contributed
positively
to
performance.
(Duration
is
a
measure
of
interest
rate
sensitivity.)
Positions
in
Japan
detracted,
as
did
foreign-
currency
positioning.
The
Fund’s
use
of
derivatives
marginally
detracted
from
performance.
The
Fund’s
cash
position
had
no
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
compelling
yields.
It
maintained
an
active
positioning
within
U.S.
investment-grade
corporate
bonds,
and
it
increased
the
Fund’s
overweight
in
agency
MBS.
At
the
same
time,
it
kept
the
allocation
to
high
yield
bonds
near
historically
low
levels.
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
(“CMBS”)
and
asset-backed
securities
(“ABS”).
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
allocation
to
investment-
grade
corporate
bonds
due
to
unattractive
yield
spreads,
and
it
further
added
to
agency
MBS.
During
the
second
quarter
of
2023,
the
investment
adviser
tactically
raised
duration
to
an
overweight
position,
particularly
on
the
front-end
of
the
yield
curve,
on
the
belief
that
the
Fed
was
moving
closer
to
pausing
its
interest
rate
increases.
It
tactically
increased
the
Fund’s
long
position
in
European
sovereign
debt
given
attractive
yields
and
improved
clarity
on
the
medium-term
path
for
Eurozone
inflation
and
European
Central
Bank
policy.
The
Fund
also
had
a
short
position
in
long-term
Japanese
government
bonds
based
on
elevated
inflation
risks
and
the
potential
for
a
hawkish
shift
by
the
Bank
of
Japan.
The
investment
adviser
trimmed
the
Fund’s
position
in
U.S.
investment-
grade
corporate
bonds,
particularly
in
the
industrials
sector.
In
addition,
it
tactically
added
to
agency
MBS
due
to
their
attractive
valuations.
It
also
favored
select,
top-of-the-
capital
structure
segments
of
the
structured
product
market,
including
industrials,
multi-family,
hotels,
and
select
office
properties
in
CMBS,
higher
quality
collateralized
loan
obligations
with
structural
protections,
and
short-dated,
senior
ABS.
Later
in
the
reporting
period,
the
investment
adviser
reduced
the
Fund’s
overweight
duration
position
by
trimming
its
allocation
to
the
front
end
of
the
yield
curve.
The
investment
adviser
continued
to
rotate
the
portfolio
in
an
effort
to
capture
attractive
opportunities.
Describe
portfolio
positioning
at
period
end.
The
Fund’s
duration
was
above
that
of
the
Benchmark.
It
was
underweight
in
U.S.
investment-grade
corporate
bonds,
where
spreads
looked
less
attractive.
It
was
overweight
in
agency
MBS,
where
spreads
were
on
the
wider
end
of
the
historical
range.
It
also
retained
a
sizable
allocation
to
high-quality
securitized
assets.
The
portfolio
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
September
30,
2023
(continued)
11
Fund
Summary
BlackRock
Sustainable
Total
Return
Fund
GROWTH
OF
$10,000
INVESTMENT
The
Fund
commenced
operations
on
October
18,
2021.
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.
(a)
Assuming
maximum
sales
charges,
if
any,
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional
Shares
do
not
have
a
sales
charge.
(b)
The
Fund
typically
invests
more
than
90%
of
its
assets
in
a
diversified
portfolio
of
fixed-income
securities.
(c)
A
broad-based
flagship
benchmark
that
measures
the
investment
grade,
U.S.
dollar-denominated,
fixed-rate
taxable
bond
market.
Average
Annual
Total
Returns
(a)
1
Year
Since
Inception
(b)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
..................................................
4.59%
(0.50)%
1.33%
N/A
(8.01)%
N/A
Investor
A
...................................................
4.15
(0.57)
1.06
(2.98)%
(8.27)
(10.17)%
Class
K
....................................................
4.62
(0.35)
1.37
N/A
(7.98)
N/A
Bloomberg
U.S.
Aggregate
Bond
Index
.............................
—
—
0.64
N/A
(7.38)
N/A
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees.
(b)
The
Fund
commenced
operations
on
October
18,
2021.
Fund
Summary
as
of
September
30,
2023
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
12
BlackRock
Sustainable
Total
Return
Fund
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Portfolio
Information
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(04/01/23)
Ending
Account
Value
(09/30/23)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(04/01/23)
Ending
Account
Value
(09/30/23)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00
$
959.10
$
2.11
$
1,000.00
$
1,022.91
$
2.18
0.43%
Investor
A
................................
1,000.00
957.80
3.53
1,000.00
1,021.46
3.65
0.72
Class
K
..................................
1,000.00
959.30
1.92
1,000.00
1,023.11
1.98
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
183/365
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
U.S.
Government
Sponsored
Agency
Securities
..............
41.9
%
Corporate
Bonds
...................................
22.9
U.S.
Treasury
Obligations
.............................
17.6
Asset-Backed
Securities
..............................
11.8
Non-Agency
Mortgage-Backed
Securities
..................
4.3
Foreign
Government
Obligations
........................
0.8
Municipal
Bonds
...................................
0.5
Foreign
Agency
Obligations
............................
0.2
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
AAA/Aaa
(c)
......................................
69.6
%
AA/Aa
.........................................
2.1
A
.............................................
10.1
BBB/Baa
.......................................
14.2
CC/Ca
.........................................
0.2
NR
...........................................
3.8
(a)
Excludes
short-term
securities,
options
purchased,
options
written
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.
About
Fund
Performance
13
About
Fund
Performance
Institutional
and
Class
K
Shares
are
not
subject
to
any
sales
charge.
These
shares
bear
no
ongoing
distribution
or
service
fees
and
are
available
only
to
certain
eligible
investors.
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
2023
BlackRock
Annual
Report
to
Shareholders
14
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.
Schedule
of
Investments
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
15
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Common
Stocks
Chemicals
—
0.1%
Element
Solutions,
Inc.
...............
2,144
$
42,044
Financial
Services
—
0.0%
Block,
Inc.,
Class
A
(a)
................
259
11,463
Ground
Transportation
—
0.1%
Uber
Technologies,
Inc.
(a)
.............
939
43,185
Hotels,
Restaurants
&
Leisure
—
0.1%
Aramark
.........................
414
14,366
IT
Services
—
0.0%
Twilio,
Inc.,
Class
A
(a)
................
87
5,092
Pharmaceuticals
—
0.1%
Catalent,
Inc.
(a)
....................
815
37,107
Total
Common
Stocks
—
0.4%
(Cost:
$188,609)
................................
153,257
Par
(000)
Par
(000)
Corporate
Bonds
Aerospace
&
Defense
—
3.7%
(b)
Bombardier,
Inc.
7.13%,
06/15/26
.................
USD
175
169,550
7.88%,
04/15/27
.................
124
120,993
6.00%,
02/15/28
.................
59
53,524
7.50%,
02/01/29
.................
92
87,305
TransDigm,
Inc.
6.25%,
03/15/26
.................
454
446,092
6.75%,
08/15/28
.................
458
450,896
6.88%,
12/15/30
.................
43
42,163
Triumph
Group,
Inc.,
9.00%,
03/15/28
....
176
174,030
1,544,553
Air
Freight
&
Logistics
—
0.2%
Forward
Air
Corp.,
9.50%,
10/15/31
(b)
.....
81
80,943
Automobile
Components
—
2.1%
Clarios
Global
LP
(b)
6.75%,
05/15/25
.................
100
99,247
6.25%,
05/15/26
.................
106
103,715
8.50%,
05/15/27
.................
522
520,503
6.75%,
05/15/28
.................
136
132,770
Goodyear
Tire
&
Rubber
Co.
(The)
9.50%,
05/31/25
.................
41
41,615
5.63%,
04/30/33
.................
2
1,637
899,487
Automobiles
—
0.5%
Ford
Motor
Co.
3.25%,
02/12/32
.................
183
141,032
6.10%,
08/19/32
.................
66
62,166
203,198
Banks
—
0.5%
BNP
Paribas
SA,
(5-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
4.35%),
8.50%
(b)(c)(d)
..............
200
195,665
Broadline
Retail
—
0.4%
(b)
ANGI
Group
LLC,
3.88%,
08/15/28
......
36
28,169
Go
Daddy
Operating
Co.
LLC,
3.50%,
03/01/29
77
64,784
Match
Group
Holdings
II
LLC
4.63%,
06/01/28
.................
47
42,136
3.63%,
10/01/31
.................
17
13,415
Security
Par
(000)
Par
(000)
Value
Broadline
Retail
(continued)
NMG
Holding
Co.,
Inc.,
7.13%,
04/01/26
...
USD
25
$
23,453
171,957
Building
Products
—
0.7%
(b)
Advanced
Drainage
Systems,
Inc.
5.00%,
09/30/27
.................
25
23,354
6.38%,
06/15/30
.................
157
150,791
Camelot
Return
Merger
Sub,
Inc.,
8.75%,
08/01/28
.....................
48
46,303
Standard
Industries,
Inc.
5.00%,
02/15/27
.................
8
7,416
4.75%,
01/15/28
.................
9
8,118
4.38%,
07/15/30
.................
55
45,551
3.38%,
01/15/31
.................
37
28,600
310,133
Capital
Markets
—
0.3%
AG
TTMT
Escrow
Issuer
LLC,
8.63%,
09/30/27
(b)
....................
33
33,202
Compass
Group
Diversified
Holdings
LLC,
5.25%,
04/15/29
(b)
...............
47
41,092
Northern
Trust
Corp.,
6.13%,
11/02/32
....
49
48,383
122,677
Chemicals
—
3.0%
Ashland,
Inc.,
3.38%,
09/01/31
(b)
........
117
90,983
Avient
Corp.,
7.13%,
08/01/30
(b)
........
36
35,366
Axalta
Coating
Systems
LLC
(b)
4.75%,
06/15/27
.................
150
139,377
3.38%,
02/15/29
.................
350
291,407
Chemours
Co.
(The)
(b)
5.75%,
11/15/28
.................
6
5,208
4.63%,
11/15/29
.................
29
23,329
Element
Solutions,
Inc.,
3.88%,
09/01/28
(b)
.
258
222,651
HB
Fuller
Co.,
4.00%,
02/15/27
........
47
43,269
Herens
Holdco
SARL,
4.75%,
05/15/28
(b)
..
200
155,293
Kobe
U.S.
Midco
2,
Inc.,
9.25%,
11/01/26
(b)(d)
57
41,610
WR
Grace
Holdings
LLC
(b)
4.88%,
06/15/27
.................
24
22,019
5.63%,
08/15/29
.................
190
153,662
7.38%,
03/01/31
.................
32
31,023
1,255,197
Commercial
Services
&
Supplies
—
3.4%
ADT
Security
Corp.
(The)
(b)
4.13%,
08/01/29
.................
3
2,537
4.88%,
07/15/32
.................
27
22,545
Allied
Universal
Holdco
LLC
(b)
6.63%,
07/15/26
.................
180
170,557
9.75%,
07/15/27
.................
172
153,839
4.63%,
06/01/28
.................
200
166,672
APi
Group
DE,
Inc.
(b)
4.13%,
07/15/29
.................
19
15,967
4.75%,
10/15/29
.................
24
20,999
APX
Group,
Inc.
(b)
6.75%,
02/15/27
.................
26
24,966
5.75%,
07/15/29
.................
80
67,409
Aramark
Services,
Inc.
(b)
5.00%,
04/01/25
.................
9
8,846
5.00%,
02/01/28
.................
117
108,206
Covanta
Holding
Corp.
4.88%,
12/01/29
(b)
................
20
16,408
5.00%,
09/01/30
.................
15
11,970
Garda
World
Security
Corp.
(b)
4.63%,
02/15/27
.................
39
35,688
9.50%,
11/01/27
.................
10
9,561
7.75%,
02/15/28
.................
87
85,295
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
16
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Commercial
Services
&
Supplies
(continued)
GFL
Environmental,
Inc.
(b)
4.25%,
06/01/25
.................
USD
3
$
2,883
3.75%,
08/01/25
.................
5
4,739
5.13%,
12/15/26
.................
43
40,961
4.00%,
08/01/28
.................
4
3,495
3.50%,
09/01/28
.................
6
5,166
4.75%,
06/15/29
.................
84
74,668
4.38%,
08/15/29
.................
16
13,898
Legends
Hospitality
Holding
Co.
LLC,
5.00%,
02/01/26
(b)
....................
41
40,180
Madison
IAQ
LLC,
5.88%,
06/30/29
(b)
.....
95
76,498
Neptune
Bidco
US,
Inc.,
9.29%,
04/15/29
(b)
.
18
16,296
Prime
Security
Services
Borrower
LLC
(b)
5.75%,
04/15/26
.................
92
89,255
6.25%,
01/15/28
.................
57
52,792
Stericycle,
Inc.,
3.88%,
01/15/29
(b)
.......
21
18,109
Williams
Scotsman,
Inc.,
7.38%,
10/01/31
(b)
.
81
80,558
1,440,963
Communications
Equipment
—
0.7%
(b)
CommScope
Technologies
LLC,
6.00%,
06/15/25
.....................
80
76,156
CommScope,
Inc.
6.00%,
03/01/26
.................
41
38,262
4.75%,
09/01/29
.................
58
42,662
Viasat,
Inc.
5.63%,
09/15/25
.................
78
72,053
5.63%,
04/15/27
.................
39
33,788
7.50%,
05/30/31
.................
12
7,926
Viavi
Solutions,
Inc.,
3.75%,
10/01/29
....
35
28,452
299,299
Construction
&
Engineering
—
0.1%
(b)
Dycom
Industries,
Inc.,
4.50%,
04/15/29
...
31
26,815
MasTec,
Inc.,
4.50%,
08/15/28
.........
10
8,993
35,808
Consumer
Finance
—
2.0%
Ford
Motor
Credit
Co.
LLC
4.13%,
08/04/25
.................
200
189,617
6.80%,
05/12/28
.................
208
207,759
7.35%,
03/06/30
.................
200
202,536
Navient
Corp.,
9.38%,
07/25/30
........
34
33,532
OneMain
Finance
Corp.
6.88%,
03/15/25
.................
10
9,921
7.13%,
03/15/26
.................
53
51,907
6.63%,
01/15/28
.................
20
18,454
9.00%,
01/15/29
.................
25
24,919
4.00%,
09/15/30
.................
107
80,288
SLM
Corp.,
3.13%,
11/02/26
..........
41
35,563
854,496
Consumer
Staples
Distribution
&
Retail
—
1.0%
(b)
Albertsons
Cos.,
Inc.
3.25%,
03/15/26
.................
49
45,387
4.63%,
01/15/27
.................
8
7,554
6.50%,
02/15/28
.................
44
43,488
3.50%,
03/15/29
.................
31
26,430
4.88%,
02/15/30
.................
113
101,816
United
Natural
Foods,
Inc.,
6.75%,
10/15/28
51
38,877
US
Foods,
Inc.
6.88%,
09/15/28
.................
56
55,883
4.75%,
02/15/29
.................
47
42,007
4.63%,
06/01/30
.................
5
4,344
7.25%,
01/15/32
.................
67
66,932
432,718
Security
Par
(000)
Par
(000)
Value
Containers
&
Packaging
—
4.9%
ARD
Finance
SA,
6.50%,
06/30/27
(b)
.....
USD
200
$
150,888
Ardagh
Metal
Packaging
Finance
USA
LLC
(b)
6.00%,
06/15/27
.................
200
192,194
4.00%,
09/01/29
.................
200
156,514
Ball
Corp.
6.00%,
06/15/29
.................
26
25,241
3.13%,
09/15/31
.................
72
56,382
Clydesdale
Acquisition
Holdings,
Inc.
(b)
6.63%,
04/15/29
.................
121
112,504
8.75%,
04/15/30
.................
76
65,182
Crown
Americas
LLC,
4.25%,
09/30/26
...
124
116,560
Graphic
Packaging
International
LLC,
3.50%,
03/15/28
(b)
....................
98
85,979
Mauser
Packaging
Solutions
Holding
Co.
(b)
7.88%,
08/15/26
.................
580
559,547
9.25%,
04/15/27
.................
14
12,237
Owens-Brockway
Glass
Container,
Inc.
(b)
6.63%,
05/13/27
.................
32
31,196
7.25%,
05/15/31
.................
195
190,613
Sealed
Air
Corp.
(b)
4.00%,
12/01/27
.................
70
62,461
6.13%,
02/01/28
.................
46
44,552
5.00%,
04/15/29
.................
8
7,193
Trivium
Packaging
Finance
BV,
8.50%,
08/15/27
(b)(e)
...................
228
208,366
2,077,609
Distributors
—
0.2%
(b)
American
Builders
&
Contractors
Supply
Co.,
Inc.,
3.88%,
11/15/29
.............
12
10,000
Resideo
Funding,
Inc.,
4.00%,
09/01/29
...
8
6,573
Ritchie
Bros
Holdings,
Inc.
6.75%,
03/15/28
.................
18
17,958
7.75%,
03/15/31
.................
59
59,885
94,416
Diversified
Consumer
Services
—
0.4%
Sotheby's,
5.88%,
06/01/29
(b)
..........
200
160,500
Diversified
REITs
—
0.3%
(b)
HAT
Holdings
I
LLC,
3.38%,
06/15/26
....
106
94,216
Iron
Mountain
Information
Management
Services,
Inc.,
5.00%,
07/15/32
.......
49
40,275
134,491
Diversified
Telecommunication
Services
—
5.8%
Altice
France
SA,
5.13%,
07/15/29
(b)
.....
200
142,181
CCO
Holdings
LLC
(b)
5.00%,
02/01/28
.................
73
66,294
6.38%,
09/01/29
.................
168
156,654
4.75%,
03/01/30
.................
27
22,665
4.25%,
02/01/31
.................
125
99,505
7.38%,
03/01/31
.................
135
130,387
4.75%,
02/01/32
.................
47
37,600
4.25%,
01/15/34
.................
28
20,616
Frontier
Communications
Holdings
LLC
(b)
5.88%,
10/15/27
.................
65
59,116
5.00%,
05/01/28
.................
49
41,837
8.75%,
05/15/30
.................
179
169,956
Iliad
Holding
SASU
(b)
6.50%,
10/15/26
.................
200
187,903
7.00%,
10/15/28
.................
294
267,621
Level
3
Financing,
Inc.
(b)
3.40%,
03/01/27
.................
128
119,857
4.63%,
09/15/27
.................
134
96,368
3.63%,
01/15/29
.................
12
6,720
10.50%,
05/15/30
................
173
174,140
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
17
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Diversified
Telecommunication
Services
(continued)
Lumen
Technologies,
Inc.,
4.00%,
02/15/27
(b)
USD
58
$
38,190
Telecom
Italia
Capital
SA
6.38%,
11/15/33
.................
57
49,423
6.00%,
09/30/34
.................
74
61,700
7.72%,
06/04/38
.................
2
1,830
Uniti
Group
LP,
10.50%,
02/15/28
(b)
......
137
134,185
Zayo
Group
Holdings,
Inc.
(b)
4.00%,
03/01/27
.................
366
271,530
6.13%,
03/01/28
.................
142
91,266
2,447,544
Electric
Utilities
—
1.9%
(b)
Alexander
Funding
Trust
II,
7.47%,
07/31/28
100
100,131
Clearway
Energy
Operating
LLC,
3.75%,
02/15/31
.....................
3
2,366
NextEra
Energy
Operating
Partners
LP,
4.25%,
09/15/24
.....................
233
223,098
NRG
Energy,
Inc.,
7.00%,
03/15/33
......
45
43,478
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
505
438,592
807,665
Electrical
Equipment
—
0.2%
Vertiv
Group
Corp.,
4.13%,
11/15/28
(b)
....
100
87,901
Electronic
Equipment,
Instruments
&
Components
—
0.3%
Sensata
Technologies,
Inc.,
4.38%,
02/15/30
(b)
160
138,161
Entertainment
—
0.5%
(b)
Lions
Gate
Capital
Holdings
LLC,
5.50%,
04/15/29
.....................
48
31,647
Live
Nation
Entertainment,
Inc.
5.63%,
03/15/26
.................
4
3,841
6.50%,
05/15/27
.................
107
105,501
4.75%,
10/15/27
.................
46
42,119
3.75%,
01/15/28
.................
37
32,652
Playtika
Holding
Corp.,
4.25%,
03/15/29
...
10
8,350
224,110
Financial
Services
—
2.5%
Block,
Inc.
2.75%,
06/01/26
.................
89
80,046
3.50%,
06/01/31
.................
258
202,675
Enact
Holdings,
Inc.,
6.50%,
08/15/25
(b)
...
65
64,019
GGAM
Finance
Ltd.
(b)
7.75%,
05/15/26
.................
10
9,900
8.00%,
06/15/28
.................
10
9,980
MGIC
Investment
Corp.,
5.25%,
08/15/28
..
92
85,672
Nationstar
Mortgage
Holdings,
Inc.
(b)
5.00%,
02/01/26
.................
172
160,664
6.00%,
01/15/27
.................
27
25,513
5.75%,
11/15/31
.................
26
21,508
Rocket
Mortgage
LLC
(b)
2.88%,
10/15/26
.................
110
96,876
3.88%,
03/01/31
.................
17
13,555
4.00%,
10/15/33
.................
8
6,042
Shift4
Payments
LLC,
4.63%,
11/01/26
(b)
...
80
75,429
Verscend
Escrow
Corp.,
9.75%,
08/15/26
(b)
.
208
208,036
1,059,915
Food
Products
—
1.7%
(b)
B&G
Foods,
Inc.,
8.00%,
09/15/28
......
25
25,034
Chobani
LLC
7.50%,
04/15/25
.................
81
80,237
4.63%,
11/15/28
.................
173
152,582
Darling
Ingredients,
Inc.
5.25%,
04/15/27
.................
108
102,914
6.00%,
06/15/30
.................
162
153,371
Lamb
Weston
Holdings,
Inc.
4.88%,
05/15/28
.................
49
45,195
Security
Par
(000)
Par
(000)
Value
Food
Products
(continued)
4.13%,
01/31/30
.................
USD
84
$
71,833
4.38%,
01/31/32
.................
90
75,396
706,562
Gas
Utilities
—
0.0%
Suburban
Propane
Partners
LP,
5.00%,
06/01/31
(b)
....................
16
13,356
Ground
Transportation
—
1.3%
(b)
Hertz
Corp.
(The)
4.63%,
12/01/26
.................
30
26,587
5.00%,
12/01/29
.................
24
18,790
NESCO
Holdings
II,
Inc.,
5.50%,
04/15/29
..
48
42,120
Uber
Technologies,
Inc.
8.00%,
11/01/26
.................
14
14,165
7.50%,
09/15/27
.................
146
147,212
6.25%,
01/15/28
.................
98
95,831
4.50%,
08/15/29
.................
180
160,894
Williams
Scotsman
International,
Inc.,
4.63%,
08/15/28
.....................
38
34,010
XPO
Escrow
Sub
LLC,
7.50%,
11/15/27
...
21
21,232
560,841
Health
Care
Equipment
&
Supplies
—
2.3%
Avantor
Funding,
Inc.
(b)
4.63%,
07/15/28
.................
131
119,430
3.88%,
11/01/29
.................
71
60,682
Bausch
&
Lomb
Escrow
Corp.,
8.38%,
10/01/28
(b)
....................
269
269,799
Embecta
Corp.,
6.75%,
02/15/30
(b)
......
9
7,357
Garden
Spinco
Corp.,
8.63%,
07/20/30
(b)
..
46
48,017
Hologic,
Inc.,
3.25%,
02/15/29
(b)
........
97
81,936
Medline
Borrower
LP
(b)
3.88%,
04/01/29
.................
20
16,909
5.25%,
10/01/29
.................
258
222,988
Teleflex,
Inc.
4.63%,
11/15/27
.................
3
2,753
4.25%,
06/01/28
(b)
................
137
122,553
952,424
Health
Care
Providers
&
Services
—
3.6%
Acadia
Healthcare
Co.,
Inc.
(b)
5.50%,
07/01/28
.................
26
24,179
5.00%,
04/15/29
.................
5
4,496
AdaptHealth
LLC,
6.13%,
08/01/28
(b)
.....
45
38,842
AHP
Health
Partners,
Inc.,
5.75%,
07/15/29
(b)
115
96,600
Community
Health
Systems,
Inc.
(b)
6.00%,
01/15/29
.................
144
116,292
5.25%,
05/15/30
.................
115
87,420
4.75%,
02/15/31
.................
83
58,741
Encompass
Health
Corp.
4.50%,
02/01/28
.................
109
99,312
4.63%,
04/01/31
.................
52
44,079
HealthEquity,
Inc.,
4.50%,
10/01/29
(b)
.....
100
86,138
Legacy
LifePoint
Health
LLC,
4.38%,
02/15/27
(b)
....................
29
24,940
LifePoint
Health,
Inc.
9.88%,
08/15/30
(b)
................
60
58,088
Class
B,
11.00%,
10/15/30
..........
88
88,000
Molina
Healthcare,
Inc.
(b)
4.38%,
06/15/28
.................
30
26,881
3.88%,
11/15/30
.................
10
8,276
3.88%,
05/15/32
.................
8
6,416
Option
Care
Health,
Inc.,
4.38%,
10/31/29
(b)
.
56
48,370
Pediatrix
Medical
Group,
Inc.,
5.38%,
02/15/30
(b)
....................
72
63,411
Prime
Healthcare
Services,
Inc.,
7.25%,
11/01/25
(b)
....................
5
4,623
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
18
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Health
Care
Providers
&
Services
(continued)
RegionalCare
Hospital
Partners
Holdings,
Inc.,
9.75%,
12/01/26
(b)
...............
USD
12
$
11,617
Surgery
Center
Holdings,
Inc.
(b)
6.75%,
07/01/25
.................
55
54,587
10.00%,
04/15/27
................
76
76,855
Tenet
Healthcare
Corp.
4.88%,
01/01/26
.................
67
64,188
6.25%,
02/01/27
.................
25
24,190
5.13%,
11/01/27
.................
29
26,988
6.13%,
10/01/28
.................
35
32,856
6.13%,
06/15/30
.................
81
75,942
6.75%,
05/15/31
(b)
................
180
173,605
1,525,932
Hotels,
Restaurants
&
Leisure
—
6.0%
1011778
BC
ULC
(b)
3.88%,
01/15/28
.................
26
23,323
4.38%,
01/15/28
.................
82
73,911
4.00%,
10/15/30
.................
96
79,773
Boyne
USA,
Inc.,
4.75%,
05/15/29
(b)
.....
110
96,212
Caesars
Entertainment,
Inc.
(b)
6.25%,
07/01/25
.................
140
138,084
8.13%,
07/01/27
.................
241
242,149
4.63%,
10/15/29
.................
84
71,153
7.00%,
02/15/30
.................
182
177,097
CDI
Escrow
Issuer,
Inc.,
5.75%,
04/01/30
(b)
.
153
138,223
Cedar
Fair
LP,
5.50%,
05/01/25
(b)
.......
95
93,023
Churchill
Downs,
Inc.
(b)
5.50%,
04/01/27
.................
2
1,906
4.75%,
01/15/28
.................
22
19,845
6.75%,
05/01/31
.................
91
85,995
Fertitta
Entertainment
LLC
(b)
4.63%,
01/15/29
.................
23
19,492
6.75%,
01/15/30
.................
7
5,706
Hilton
Domestic
Operating
Co.,
Inc.
5.75%,
05/01/28
(b)
................
57
55,103
3.75%,
05/01/29
(b)
................
66
57,077
4.88%,
01/15/30
.................
48
43,684
4.00%,
05/01/31
(b)
................
42
35,309
3.63%,
02/15/32
(b)
................
10
8,062
Light
&
Wonder
International,
Inc.
(b)
7.25%,
11/15/29
.................
44
43,120
7.50%,
09/01/31
.................
43
42,499
Lindblad
Expeditions
Holdings,
Inc.,
9.00%,
05/15/28
(b)
....................
55
54,880
Lindblad
Expeditions
LLC,
6.75%,
02/15/27
(b)
91
85,199
MajorDrive
Holdings
IV
LLC,
6.38%,
06/01/29
(b)
67
55,139
Merlin
Entertainments
Ltd.,
5.75%,
06/15/26
(b)
200
190,975
MGM
China
Holdings
Ltd.,
5.88%,
05/15/26
(b)
200
189,516
MGM
Resorts
International,
5.75%,
06/15/25
90
87,908
Midwest
Gaming
Borrower
LLC,
4.88%,
05/01/29
(b)
....................
38
32,352
Six
Flags
Entertainment
Corp.,
7.25%,
05/15/31
(b)
....................
111
104,216
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
(b)
33
32,916
Vail
Resorts,
Inc.,
6.25%,
05/15/25
(b)
.....
93
92,499
Wyndham
Hotels
&
Resorts,
Inc.,
4.38%,
08/15/28
(b)
....................
71
63,771
2,540,117
Household
Durables
—
0.9%
Ashton
Woods
USA
LLC,
4.63%,
08/01/29
(b)
25
21,096
Brookfield
Residential
Properties,
Inc.,
5.00%,
06/15/29
(b)
....................
97
79,838
CD&R
Smokey
Buyer,
Inc.,
6.75%,
07/15/25
(b)
68
65,525
Dream
Finders
Homes,
Inc.,
8.25%,
08/15/28
(b)
26
26,176
Security
Par
(000)
Par
(000)
Value
Household
Durables
(continued)
KB
Home,
7.25%,
07/15/30
...........
USD
15
$
14,735
SWF
Escrow
Issuer
Corp.,
6.50%,
10/01/29
(b)
71
45,419
Taylor
Morrison
Communities,
Inc.,
5.88%,
06/15/27
(b)
....................
68
64,646
Tempur
Sealy
International,
Inc.
(b)
4.00%,
04/15/29
.................
17
14,188
3.88%,
10/15/31
.................
31
23,915
TRI
Pointe
Homes,
Inc.,
5.25%,
06/01/27
..
22
20,587
376,125
Household
Products
—
0.0%
Spectrum
Brands,
Inc.,
5.00%,
10/01/29
(b)
..
18
16,310
Independent
Power
and
Renewable
Electricity
Producers
—
2.1%
Clearway
Energy
Operating
LLC
(b)
4.75%,
03/15/28
.................
616
550,926
3.75%,
01/15/32
.................
101
78,515
TransAlta
Corp.,
7.75%,
11/15/29
.......
238
240,975
870,416
Industrial
Conglomerates
—
1.3%
Emerald
Debt
Merger
Sub
LLC,
6.63%,
12/15/30
(b)
....................
567
545,837
Insurance
—
4.4%
(b)
Alliant
Holdings
Intermediate
LLC
4.25%,
10/15/27
.................
148
132,510
6.75%,
10/15/27
.................
317
294,814
6.75%,
04/15/28
.................
130
125,457
5.88%,
11/01/29
.................
272
235,557
AmWINS
Group,
Inc.,
4.88%,
06/30/29
....
21
18,401
GTCR
AP
Finance,
Inc.,
8.00%,
05/15/27
..
22
21,625
HUB
International
Ltd.
7.00%,
05/01/26
.................
101
100,778
7.25%,
06/15/30
.................
330
329,396
Jones
Deslauriers
Insurance
Management,
Inc.
8.50%,
03/15/30
.................
113
113,830
10.50%,
12/15/30
................
58
59,011
NFP
Corp.
4.88%,
08/15/28
.................
107
94,198
6.88%,
08/15/28
.................
285
244,153
7.50%,
10/01/30
.................
24
23,048
8.50%,
10/01/31
.................
42
42,064
Ryan
Specialty
LLC,
4.38%,
02/01/30
....
34
29,608
1,864,450
IT
Services
—
1.5%
Ahead
DB
Holdings
LLC,
6.63%,
05/01/28
(b)
57
48,147
Booz
Allen
Hamilton,
Inc.,
4.00%,
07/01/29
(b)
93
82,026
Central
Parent
LLC,
8.00%,
06/15/29
(b)
....
93
92,656
Gartner,
Inc.,
4.50%,
07/01/28
(b)
........
51
46,528
GTCR
W-2
Merger
Sub
LLC,
7.50%,
01/15/31
(b)
224
224,313
Northwest
Fiber
LLC,
4.75%,
04/30/27
(b)
...
59
52,510
Presidio
Holdings,
Inc.,
4.88%,
02/01/27
(b)
..
8
7,396
Twilio,
Inc.
3.63%,
03/15/29
.................
18
15,068
3.88%,
03/15/31
.................
95
77,243
645,887
Leisure
Products
—
0.2%
Acushnet
Co.,
7.38%,
10/15/28
(b)
.......
19
19,142
Mattel,
Inc.
6.20%,
10/01/40
.................
53
47,206
5.45%,
11/01/41
.................
5
4,124
70,472
Life
Sciences
Tools
&
Services
—
0.7%
(b)
Charles
River
Laboratories
International,
Inc.
4.25%,
05/01/28
.................
32
28,697
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
19
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Life
Sciences
Tools
&
Services
(continued)
4.00%,
03/15/31
.................
USD
14
$
11,847
Fortrea
Holdings,
Inc.,
7.50%,
07/01/30
...
44
42,813
Star
Parent,
Inc.,
9.00%,
10/01/30
.......
195
197,048
280,405
Machinery
—
1.1%
Mueller
Water
Products,
Inc.,
4.00%,
06/15/29
(b)
43
37,449
Terex
Corp.,
5.00%,
05/15/29
(b)
........
63
56,418
Titan
International,
Inc.,
7.00%,
04/30/28
..
23
21,496
TK
Elevator
Holdco
GmbH,
7.63%,
07/15/28
(b)
200
182,045
TK
Elevator
US
Newco,
Inc.,
5.25%,
07/15/27
(b)
200
183,306
480,714
Media
—
3.7%
Altice
Financing
SA,
5.75%,
08/15/29
(b)
....
200
163,907
Cable
One,
Inc.
0.00%,
03/15/26
(f)(g)
...............
22
17,996
1.13%,
03/15/28
(f)
................
147
109,368
4.00%,
11/15/30
(b)
................
73
55,611
Clear
Channel
Outdoor
Holdings,
Inc.
(b)
5.13%,
08/15/27
.................
102
90,575
7.75%,
04/15/28
.................
28
22,356
9.00%,
09/15/28
.................
157
155,483
7.50%,
06/01/29
.................
111
84,875
CSC
Holdings
LLC,
4.13%,
12/01/30
(b)
....
200
141,543
DirecTV
Financing
LLC,
5.88%,
08/15/27
(b)
.
33
29,178
GCI
LLC,
4.75%,
10/15/28
(b)
..........
8
6,900
Gray
Television,
Inc.
(b)
5.88%,
07/15/26
.................
20
17,970
7.00%,
05/15/27
.................
23
19,780
Hughes
Satellite
Systems
Corp.,
5.25%,
08/01/26
.....................
12
10,790
Nexstar
Media,
Inc.,
5.63%,
07/15/27
(b)
....
12
10,679
Outfront
Media
Capital
LLC
(b)
5.00%,
08/15/27
.................
111
97,800
4.25%,
01/15/29
.................
10
7,935
4.63%,
03/15/30
.................
16
12,578
Radiate
Holdco
LLC,
6.50%,
09/15/28
(b)
...
128
67,200
Sinclair
Television
Group,
Inc.,
4.13%,
12/01/30
(b)
....................
37
22,943
Sirius
XM
Radio,
Inc.
(b)
3.13%,
09/01/26
.................
92
81,995
5.00%,
08/01/27
.................
46
42,016
TEGNA,
Inc.,
4.75%,
03/15/26
(b)
........
5
4,737
Univision
Communications,
Inc.
(b)
6.63%,
06/01/27
.................
30
27,940
8.00%,
08/15/28
.................
80
77,560
7.38%,
06/30/30
.................
37
33,814
Ziggo
Bond
Co.
BV,
5.13%,
02/28/30
(b)
....
200
149,203
1,562,732
Metals
&
Mining
—
4.0%
(b)
Big
River
Steel
LLC,
6.63%,
01/31/29
....
727
718,305
Constellium
SE
5.63%,
06/15/28
.................
250
235,205
3.75%,
04/15/29
.................
250
209,479
Novelis
Corp.
3.25%,
11/15/26
.................
390
348,308
4.75%,
01/30/30
.................
14
12,116
3.88%,
08/15/31
.................
193
154,127
1,677,540
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.0%
(b)
Ladder
Capital
Finance
Holdings
LLLP,
5.25%,
10/01/25
.....................
6
5,777
Starwood
Property
Trust,
Inc.,
4.38%,
01/15/27
9
7,850
13,627
Security
Par
(000)
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
—
0.7%
EnLink
Midstream
Partners
LP
4.85%,
07/15/26
.................
USD
13
$
12,239
5.60%,
04/01/44
.................
47
39,010
ITT
Holdings
LLC,
6.50%,
08/01/29
(b)
.....
98
83,067
New
Fortress
Energy,
Inc.,
6.75%,
09/15/25
(b)
86
82,096
Occidental
Petroleum
Corp.,
6.20%,
03/15/40
92
87,695
304,107
Passenger
Airlines
—
1.2%
(b)
American
Airlines,
Inc.
11.75%,
07/15/25
................
6
6,450
5.50%,
04/20/26
.................
22
21,562
7.25%,
02/15/28
.................
17
16,254
5.75%,
04/20/29
.................
158
147,046
Mileage
Plus
Holdings
LLC,
6.50%,
06/20/27
99
98,535
United
Airlines,
Inc.
4.38%,
04/15/26
.................
68
62,886
4.63%,
04/15/29
.................
203
174,485
527,218
Personal
Care
Products
—
0.2%
(b)
Coty,
Inc.,
6.63%,
07/15/30
...........
74
72,249
Prestige
Brands,
Inc.,
3.75%,
04/01/31
....
17
13,685
85,934
Pharmaceuticals
—
0.6%
Catalent
Pharma
Solutions,
Inc.
(b)
5.00%,
07/15/27
.................
9
8,257
3.13%,
02/15/29
.................
91
74,638
3.50%,
04/01/30
.................
7
5,763
Teva
Pharmaceutical
Finance
Netherlands
III
BV,
3.15%,
10/01/26
.............
190
168,945
257,603
Professional
Services
—
0.8%
(b)
AMN
Healthcare,
Inc.
4.63%,
10/01/27
.................
25
22,594
4.00%,
04/15/29
.................
73
61,945
CoreLogic,
Inc.,
4.50%,
05/01/28
.......
100
75,878
Dun
&
Bradstreet
Corp.
(The),
5.00%,
12/15/29
100
86,214
Korn
Ferry,
4.63%,
12/15/27
..........
87
80,040
326,671
Real
Estate
Management
&
Development
—
0.8%
Anywhere
Real
Estate
Group
LLC
Series
AI,
7.00%,
04/15/30
..........
61
54,872
7.00%,
04/15/30
(b)
................
64
57,348
Cushman
&
Wakefield
US
Borrower
LLC
(b)
6.75%,
05/15/28
.................
154
142,080
8.88%,
09/01/31
.................
33
31,928
Greystar
Real
Estate
Partners
LLC,
7.75%,
09/01/30
(b)
....................
4
3,951
Howard
Hughes
Corp.
(The),
5.38%,
08/01/28
(b)
62
54,626
344,805
Retail
REITs
—
0.1%
Brookfield
Property
REIT,
Inc.,
4.50%,
04/01/27
(b)
....................
39
32,501
Semiconductors
&
Semiconductor
Equipment
—
1.0%
(b)
Entegris
Escrow
Corp.,
4.75%,
04/15/29
...
323
290,380
Entegris,
Inc.,
4.38%,
04/15/28
........
30
26,702
NCR
Atleos
Escrow
Corp.,
9.50%,
04/01/29
.
50
48,360
Synaptics,
Inc.,
4.00%,
06/15/29
........
63
51,975
417,417
Software
—
7.4%
Alteryx,
Inc.,
8.75%,
03/15/28
(b)
........
53
52,764
AthenaHealth
Group,
Inc.,
6.50%,
02/15/30
(b)
261
218,328
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
20
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Software
(continued)
Boxer
Parent
Co.,
Inc.
(b)
7.13%,
10/02/25
.................
USD
53
$
52,735
9.13%,
03/01/26
.................
66
65,815
Camelot
Finance
SA,
4.50%,
11/01/26
(b)
...
31
28,619
Capstone
Borrower,
Inc.,
8.00%,
06/15/30
(b)
.
69
67,361
Central
Parent,
Inc.,
7.25%,
06/15/29
(b)
....
99
95,982
Clarivate
Science
Holdings
Corp.
(b)
3.88%,
07/01/28
.................
317
274,427
4.88%,
07/01/29
.................
184
156,832
Cloud
Software
Group,
Inc.
(b)
6.50%,
03/31/29
.................
673
595,155
9.00%,
09/30/29
.................
329
285,901
Consensus
Cloud
Solutions,
Inc.
(b)
6.00%,
10/15/26
.................
17
15,648
6.50%,
10/15/28
.................
15
12,783
Crowdstrike
Holdings,
Inc.,
3.00%,
02/15/29
5
4,211
Elastic
NV,
4.13%,
07/15/29
(b)
.........
151
128,600
Fair
Isaac
Corp.,
4.00%,
06/15/28
(b)
......
119
106,395
Gen
Digital,
Inc.,
6.75%,
09/30/27
(b)
......
68
66,665
McAfee
Corp.,
7.38%,
02/15/30
(b)
.......
177
148,183
MicroStrategy,
Inc.,
6.13%,
06/15/28
(b)
....
65
57,729
Open
Text
Corp.,
6.90%,
12/01/27
(b)
.....
201
201,458
PTC,
Inc.
(b)
3.63%,
02/15/25
.................
49
47,091
4.00%,
02/15/28
.................
33
29,576
Sabre
GLBL,
Inc.,
8.63%,
06/01/27
(b)
.....
87
73,759
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
(b)
102
96,251
Veritas
US,
Inc.,
7.50%,
09/01/25
(b)
......
75
62,664
ZoomInfo
Technologies
LLC,
3.88%,
02/01/29
(b)
227
189,192
3,134,124
Specialized
REITs
—
1.0%
Iron
Mountain,
Inc.
(b)
7.00%,
02/15/29
.................
145
141,815
5.63%,
07/15/32
.................
24
20,719
SBA
Communications
Corp.
3.88%,
02/15/27
.................
175
160,348
3.13%,
02/01/29
.................
95
79,237
402,119
Specialty
Retail
—
1.7%
Arko
Corp.,
5.13%,
11/15/29
(b)
.........
49
39,520
Asbury
Automotive
Group,
Inc.
4.50%,
03/01/28
.................
2
1,790
5.00%,
02/15/32
(b)
................
40
33,142
GYP
Holdings
III
Corp.,
4.63%,
05/01/29
(b)
..
117
100,787
Lithia
Motors,
Inc.,
3.88%,
06/01/29
(b)
.....
43
36,240
PetSmart,
Inc.,
7.75%,
02/15/29
(b)
.......
250
232,972
Specialty
Building
Products
Holdings
LLC,
6.38%,
09/30/26
(b)
...............
14
13,092
SRS
Distribution,
Inc.
(b)
4.63%,
07/01/28
.................
96
82,935
6.13%,
07/01/29
.................
93
79,204
6.00%,
12/01/29
.................
93
78,120
Staples,
Inc.,
7.50%,
04/15/26
(b)
........
22
18,092
715,894
Technology
Hardware,
Storage
&
Peripherals
—
0.5%
Seagate
HDD
Cayman
(b)
8.25%,
12/15/29
.................
97
99,619
8.50%,
07/15/31
.................
126
129,249
228,868
Textiles,
Apparel
&
Luxury
Goods
—
0.7%
(b)
Crocs,
Inc.
4.25%,
03/15/29
.................
34
28,130
4.13%,
08/15/31
.................
4
3,095
Security
Par
(000)
Par
(000)
Value
Textiles,
Apparel
&
Luxury
Goods
(continued)
Hanesbrands,
Inc.
4.88%,
05/15/26
.................
USD
24
$
22,002
9.00%,
02/15/31
.................
31
29,548
Kontoor
Brands,
Inc.,
4.13%,
11/15/29
....
30
24,790
Levi
Strauss
&
Co.,
3.50%,
03/01/31
.....
136
107,551
William
Carter
Co.
(The),
5.63%,
03/15/27
..
94
90,404
305,520
Trading
Companies
&
Distributors
—
2.0%
(b)
Beacon
Roofing
Supply,
Inc.
4.13%,
05/15/29
.................
25
21,375
6.50%,
08/01/30
.................
53
51,363
Boise
Cascade
Co.,
4.88%,
07/01/30
.....
61
53,231
Foundation
Building
Materials,
Inc.,
6.00%,
03/01/29
.....................
23
19,142
Herc
Holdings,
Inc.,
5.50%,
07/15/27
.....
105
99,294
Imola
Merger
Corp.,
4.75%,
05/15/29
.....
88
77,123
United
Rentals
North
America,
Inc.,
6.00%,
12/15/29
.....................
321
312,542
WESCO
Distribution,
Inc.,
7.25%,
06/15/28
.
226
227,096
861,166
Wireless
Telecommunication
Services
—
1.3%
(b)
Connect
Finco
SARL,
6.75%,
10/01/26
....
333
310,588
Vmed
O2
UK
Financing
I
plc,
4.75%,
07/15/31
296
239,131
549,719
Total
Corporate
Bonds
—
90.4%
(Cost:
$41,445,468)
..............................
38,276,819
Floating
Rate
Loan
Interests
Air
Freight
&
Logistics
—
0.1%
Forward
Air
Corp.,
Term
Loan
B,
09/20/30
(d)(h)
46
44,812
Chemicals
—
0.1%
(d)
Aruba
Investments
Holdings,
LLC,
2nd
Lien
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
and
0.75%
Cap
+
7.75%),
13.17%
,
11/24/28
................
12
11,253
Olympus
Water
US
Holding
Corp.,
Term
Loan,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
5.00%),
10.39%
,
11/09/28
.
5
5,414
WR
Grace
Holdings
LLC,
Term
Loan,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.75%),
9.40%
,
09/22/28
.......
25
25,026
41,693
Commercial
Services
&
Supplies
—
0.1%
PECF
USS
Intermediate
Holding
III
Corp.,
Term
Loan,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
4.25%),
9.88%
,
12/15/28
(d)
................
38
30,427
Communications
Equipment
—
0.1%
ViaSat,
Inc.,
Term
Loan,
05/30/30
(d)(h)
......
54
49,984
Containers
&
Packaging
—
0.0%
Mauser
Packaging
Solutions
Holding
Co.,
Term
Loan,
(1-mo.
CME
Term
SOFR
+
4.00%),
9.32%
,
08/14/26
(d)
................
9
8,914
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
21
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Diversified
Consumer
Services
—
0.1%
(d)
Ascend
Learning
LLC,
1st
Lien
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.50%),
8.92%
,
12/11/28
..
USD
20
$
19,336
Ascend
Learning
LLC,
2nd
Lien
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
5.75%),
11.17%
,
12/10/29
.
29
24,638
43,974
Diversified
Telecommunication
Services
—
1.1%
(d)
Cablevision
Lightpath
LLC,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.25%),
8.70%
,
11/30/27
.......
98
96,638
Frontier
Communications
Holdings
LLC,
Term
Loan
B,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
and
0.75%
Cap
+
3.75%),
9.18%
,
10/08/27
.................
103
100,029
Radiate
Holdco
LLC,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
and
0.75%
Cap
+
3.25%),
8.68%
,
09/25/26
..........
200
163,467
Zayo
Group
Holdings,
Inc.,
Term
Loan,
(1-mo.
CME
Term
SOFR
+
3.00%),
8.43%
,
03/09/27
.................
156
127,306
487,440
Financial
Services
—
0.6%
(d)
Altice
France
SA,
Term
Loan
B14,
(3-mo.
CME
Term
SOFR
+
5.50%),
10.81%
,
08/15/28
.
187
168,404
GTCR
W
Merger
Sub
LLC,
Term
Loan
B,
09/20/30
(h)
.....................
93
92,932
261,336
Food
Products
—
0.0%
Chobani
LLC,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
1.00%
Floor
and
1.00%
Cap
+
3.50%),
8.93%
,
10/25/27
(d)
..........
7
6,511
Health
Care
Equipment
&
Supplies
—
0.2%
Bausch
+
Lomb
Corp.,
Term
Loan
(d)
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.25%),
8.76%, 05/10/27
41
39,586
(1-mo.
CME
Term
SOFR
+
4.00%),
9.32%, 09/14/28
(i)
..............
45
44,381
83,967
Health
Care
Providers
&
Services
—
0.1%
(d)
LifePoint
Health,
Inc.,
1st
Lien
Term
Loan
B,
(3-mo.
CME
Term
SOFR
+
3.75%),
9.38%
,
11/16/25
.................
24
24,411
Surgery
Center
Holdings,
Inc.,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
and
0.75%
Cap
+
3.75%),
9.19%
,
08/31/26
..
13
13,034
37,445
Health
Care
Technology
—
1.6%
(d)
Athenahealth
Group,
Inc.,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.25%),
8.57%
,
02/15/29
.......
357
349,740
Verscend
Holding
Corp.,
Term
Loan
B1,
(1-mo.
CME
Term
SOFR
+
4.00%),
9.43%
,
08/27/25
.................
335
334,241
683,981
Hotels,
Restaurants
&
Leisure
—
0.4%
Fertitta
Entertainment
LLC,
Term
Loan
B,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
4.00%),
9.32%
,
01/27/29
(d)
.
153
151,328
Security
Par
(000)
Par
(000)
Value
Household
Durables
—
0.1%
SWF
Holdings
I
Corp.,
1st
Lien
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
and
0.75%
Cap
+
4.00%),
9.43%
,
10/06/28
(d)
.
USD
72
$
60,999
Insurance
—
0.9%
(d)
Alliant
Holdings
Intermediate
LLC,
Term
Loan
B4,
(1-mo.
LIBOR
USD
at
0.50%
Floor
and
0.50%
Cap
+
3.50%),
8.93%
,
11/05/27
..
23
22,617
Alliant
Holdings
Intermediate
LLC,
Term
Loan
B5,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.50%),
8.83%
,
11/05/27
49
49,164
AssuredPartners,
Inc.,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.50%),
8.93%
,
02/12/27
..........
98
97,628
HUB
International
Ltd.,
Term
Loan
(3-mo.
CME
Term
SOFR
at
0.75%
Floor
and
0.75%
Cap
+
4.00%),
9.37%, 11/10/29
43
43,005
(3-mo.
CME
Term
SOFR
at
0.75%
Floor
and
0.75%
Cap
+
4.25%),
9.58%, 06/20/30
123
123,247
Jones
DesLauriers
Insurance
Management,
Inc.,
1st
Lien
Term
Loan,
(3-mo.
CME
Term
SOFR
+
4.25%),
9.62%
,
03/15/30
.....
29
29,055
364,716
Life
Sciences
Tools
&
Services
—
0.3%
Star
Parent,
Inc.,
Term
Loan,
09/19/30
(d)(h)
..
127
124,019
Machinery
—
0.1%
Madison
IAQ
LLC,
Term
Loan,
(1-mo.
LIBOR
USD
at
0.50%
Floor
and
0.50%
Cap
+
3.25%),
8.69%
,
06/21/28
(d)
..........
30
29,337
Media
—
0.9%
(d)
Clear
Channel
Outdoor
Holdings,
Inc.,
Term
Loan
B,
(3-mo.
CME
Term
SOFR
+
3.50%),
8.93%
-
9.13%
,
08/21/26
...........
227
220,557
DirecTV
Financing
LLC,
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
and
0.75%
Cap
+
5.00%),
10.43%
,
08/02/27
......
156
152,541
373,098
Passenger
Airlines
—
0.0%
(d)
AAdvantage
Loyalty
IP
Ltd.,
Term
Loan,
(3-mo.
CME
Term
SOFR
at
0.75%
Floor
and
0.75%
Cap
+
4.75%),
10.34%
,
04/20/28
......
5
5,279
Mileage
Plus
Holdings
LLC,
Term
Loan,
(3-mo.
CME
Term
SOFR
at
1.00%
Floor
and
1.00%
Cap
+
5.25%),
10.80%
,
06/21/27
......
6
6,337
11,616
Professional
Services
—
0.0%
CoreLogic,
Inc.,
1st
Lien
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.50%),
8.93%
,
06/02/28
(d)
......
14
12,844
Real
Estate
Management
&
Development
—
0.1%
Cushman
&
Wakefield
U.S.
Borrower
LLC,
Term
Loan,
(1-mo.
CME
Term
SOFR
+
4.00%),
9.32%
,
01/31/30
(d)
..........
44
43,560
Software
—
1.6%
(d)
Banff
Guarantor,
Inc.,
2nd
Lien
Term
Loan,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
5.50%),
10.93%
,
02/27/26
.
96
95,435
Boxer
Parent
Co.,
Inc.,
Term
Loan,
(1-mo.
CME
Term
SOFR
+
3.75%),
9.18%
,
10/02/25
..
156
156,156
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
22
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Software
(continued)
Central
Parent,
Inc.,
1st
Lien
Term
Loan,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
4.25%),
9.64%
,
07/06/29
.......
USD
36
$
35,711
Cloud
Software
Group,
Inc.,
1st
Lien
Term
Loan
B,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
4.50%),
9.99%
,
03/30/29
201
193,040
McAfee
Corp.,
Term
Loan
B1,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.75%),
9.16%
,
03/01/29
..........
82
79,520
Sabre
GLBL,
Inc.,
Term
Loan
B1,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.50%),
8.93%
,
12/17/27
..........
8
6,930
Sabre
GLBL,
Inc.,
Term
Loan
B2,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.50%),
8.93%
,
12/17/27
..........
12
10,868
SS&C
Technologies
Holdings,
Inc.,
Term
Loan
B5,
(1-mo.
CME
Term
SOFR
+
1.75%),
7.18%
,
04/16/25
.................
92
91,754
669,414
Textiles,
Apparel
&
Luxury
Goods
—
0.1%
Hanesbrands,
Inc.,
Term
Loan
B,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.75%),
9.07%
,
03/08/30
(d)(i)
........
22
21,779
Trading
Companies
&
Distributors
—
0.3%
SRS
Distribution,
Inc.,
Term
Loan
(d)
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.50%),
8.92%, 06/02/28
36
35,915
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
and
0.50%
Cap
+
3.50%),
8.93%, 06/02/28
99
97,866
133,781
Total
Floating
Rate
Loan
Interests
—
8.9%
(Cost:
$3,877,077)
..............................
3,776,975
Security
Par
(000)
Pa
r
(
000)
Value
Preferred
Securities
Capital
Trusts
—
0.4%
Electric
Utilities
—
0.3%
NRG
Energy,
Inc.,
(5-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
5.92%),
10.25%
(b)(c)(d)
..............
USD
101
$
98,920
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)
.....................
57
52,012
Total
Preferred
Securities
—
0.4%
(Cost:
$158,000)
................................
150,932
Total
Long-Term
Investments
—
100.1%
(Cost:
$45,669,154)
..............................
42,357,983
Shares
Shares
Short-Term
Securities
Money
Market
Funds
—
0.2%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
5.23%
(j)(k)
..................
84,681
84,681
Total
Short-Term
Securities
—
0.2%
(Cost:
$84,681)
................................
84,681
Total
Investments
—
100.3%
(Cost:
$45,753,835
)
..............................
42,442,664
Liabilities
in
Excess
of
Other
Assets
—
(0.3)%
............
(106,907)
Net
Assets
—
100.0%
..............................
$
42,335,757
(a)
Non-income
producing
security.
(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)
Perpetual
security
with
no
stated
maturity
date.
(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)
Convertible
security.
(g)
Zero-coupon
bond.
(h)
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.
(i)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(j)
Affiliate
of
the
Fund.
(k)
Annualized
7-day
yield
as
of
period
end.
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
23
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
September
30,
2023
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
09/30/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/23
Shares
Held
at
09/30/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
...
$
1,002,589
$
—
$
(917,908)
(a)
$
—
$
—
$
84,681
84,681
$
38,753
$
—
—
—
(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
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
24
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
For
more
information
about
the
Fund’s
investment
risks
regarding
derivative
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
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
5-Year
Note
....................................................
6
12/29/23
$
632
$
(
4,902
)
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
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
4,902
$
—
$
4,902
(a)
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
September
30,
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
c
ontracts
.......................
$
—
$
—
$
(
39,041
)
$
—
$
(
4,208
)
$
—
$
(
43,249
)
Options
purchased
(a)
.....................
—
—
(
72,448
)
—
—
—
(
72,448
)
Options
written
........................
—
—
34,639
—
—
—
34,639
$
—
$
—
$
(76,850)
$
—
$
(4,208)
$
—
$
(81,058)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
c
ontracts
.......................
$
—
$
—
$
—
$
—
$
(
15,806
)
$
—
$
(
15,806
)
(a)
Options
purchased
are
included
in
net
realized
gain
(loss)
from
investments
—
unaffiliated.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
242,215
Average
notional
value
of
contracts
—
short
.................................................................................
$
188,280
Options
Average
value
of
option
contracts
purchased
................................................................................
$
8,924
Average
value
of
option
contracts
written
...................................................................................
$
2,122
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
25
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
Common
Stocks
.........................................
$
153,257
$
—
$
—
$
153,257
Corporate
Bonds
........................................
—
38,276,819
—
38,276,819
Floating
Rate
Loan
Interests
Air
Freight
&
Logistics
....................................
—
44,812
—
44,812
Chemicals
............................................
—
41,693
—
41,693
Commercial
Services
&
Supplies
.............................
—
30,427
—
30,427
Communications
Equipment
................................
—
49,984
—
49,984
Containers
&
Packaging
..................................
—
8,914
—
8,914
Diversified
Consumer
Services
..............................
—
43,974
—
43,974
Diversified
Telecommunication
Services
........................
—
487,440
—
487,440
Financial
Services
......................................
—
261,336
—
261,336
Food
Products
.........................................
—
6,511
—
6,511
Health
Care
Equipment
&
Supplies
...........................
—
39,586
44,381
83,967
Health
Care
Providers
&
Services
............................
—
37,445
—
37,445
Health
Care
Technology
..................................
—
683,981
—
683,981
Hotels,
Restaurants
&
Leisure
..............................
—
151,328
—
151,328
Household
Durables
.....................................
—
60,999
—
60,999
Insurance
............................................
—
364,716
—
364,716
Life
Sciences
Tools
&
Services
..............................
—
124,019
—
124,019
Machinery
............................................
—
29,337
—
29,337
Media
...............................................
—
373,098
—
373,098
Passenger
Airlines
......................................
—
11,616
—
11,616
Professional
Services
....................................
—
12,844
—
12,844
Real
Estate
Management
&
Development
.......................
—
43,560
—
43,560
Software
.............................................
—
669,414
—
669,414
Textiles,
Apparel
&
Luxury
Goods
............................
—
—
21,779
21,779
Trading
Companies
&
Distributors
............................
—
133,781
—
133,781
Preferred
Securities
.......................................
—
150,932
—
150,932
Short-Term
Securities
Money
Market
Funds
......................................
84,681
—
—
84,681
$
237,938
$
42,138,566
$
66,160
$
42,442,664
Derivative
Financial
Instruments
(a)
Liabilities
Interest
rate
contracts
.......................................
$
(
4,902
)
$
—
$
—
$
(
4,902
)
(a)
Derivative
financial
instruments
are
futures
contracts.
Futures
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
26
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
AGL
Core
CLO
4
Ltd.,
Series
2020-4A,
Class
A1R,
(3-mo.
CME
Term
SOFR
+
1.33%),
6.66%,
04/20/33
(a)
(b)
...............
USD
250
$
248,622
Anchorage
Capital
CLO
3-R
Ltd.,
Series
2014-
3RA,
Class
A,
(3-mo.
CME
Term
SOFR
+
1.31%),
6.68%,
01/28/31
(a)
(b)
.........
213
211,798
Ares
LVI
CLO
Ltd.,
Series
2020-56A,
Class
AR,
(3-mo.
CME
Term
SOFR
at
1.16%
Floor
+
1.42%),
6.77%,
10/25/34
(a)
(b)
.........
250
249,057
BA
Credit
Card
Trust,
Series
2023-A1,
Class
A1,
4.79%,
05/15/28
..............
100
98,556
Barings
CLO
Ltd.,
Series
2019-3A,
Class
A1R,
(3-mo.
CME
Term
SOFR
at
1.07%
Floor
+
1.33%),
6.66%,
04/20/31
(a)
(b)
.........
250
248,796
Beechwood
Park
CLO
Ltd.,
Series
2019-1A,
Class
A1R,
(3-mo.
CME
Term
SOFR
+
1.30%),
6.61%,
01/17/35
(a)
(b)
.........
250
245,117
BlueMountain
CLO
XXII
Ltd.,
Series
2018-22A,
Class
A1,
(3-mo.
CME
Term
SOFR
at
1.08%
Floor
+
1.34%),
6.65%,
07/15/31
(a)
(b)
....
250
248,930
BMW
Vehicle
Owner
Trust
Series
2022-A,
Class
A3,
3.21%,
08/25/26
237
231,206
Series
2023-A,
Class
A3,
5.47%,
02/25/28
66
65,826
Capital
One
Multi-Asset
Execution
Trust
Series
2022-A2,
Class
A,
3.49%,
05/15/27
24
23,186
Series
2022-A3,
Class
A,
4.95%,
10/15/27
64
63,266
Series
2023-A1,
Class
A,
4.42%,
05/15/28
111
108,267
Carmax
Auto
Owner
Trust,
Series
2023-3,
Class
A3,
5.28%,
05/15/28
..........
44
43,663
Chesapeake
Funding
II
LLC,
Series
2023-2A,
Class
A1,
6.16%,
10/15/35
(b)
.........
130
129,930
CIFC
Funding
Ltd.,
Series
2021-5A,
Class
A,
(3-mo.
CME
Term
SOFR
at
1.14%
Floor
+
1.40%),
6.71%,
07/15/34
(a)
(b)
.........
250
248,221
Clover
CLO
LLC,
Series
2018-1A,
Class
A1R,
(3-mo.
CME
Term
SOFR
at
1.12%
Floor
+
1.38%),
6.71%,
04/20/32
(a)
(b)
.........
250
249,375
College
Ave
Student
Loans
LLC,
Series
2023-
A,
Class
A1,
(1-mo.
CME
Term
SOFR
+
1.90%),
7.22%,
05/25/55
(a)
(b)
.........
99
99,206
College
Avenue
Student
Loans
LLC,
Series
2021-C,
Class
A1,
(1-mo.
CME
Term
SOFR
+
1.01%),
6.33%,
07/26/55
(a)
(b)
........
77
74,460
Discover
Card
Execution
Note
Trust
Series
2023-A1,
Class
A,
4.31%,
03/15/28
102
99,284
Series
2023-A2,
Class
A,
4.93%,
06/15/28
31
30,621
Enterprise
Fleet
Financing
LLC
(b)
Series
2022-4,
Class
A2,
5.76%,
10/22/29
215
214,542
Series
2023-1,
Class
A2,
5.51%,
01/22/29
90
89,256
Series
2023-2,
Class
A2,
5.56%,
04/22/30
145
143,881
Ford
Credit
Auto
Owner
Trust
Series
2022-B,
Class
A4,
3.93%,
08/15/27
44
42,606
Series
2023-1,
Class
A,
4.85%,
08/15/35
(b)
145
140,440
Series
2023-2,
Class
A,
5.28%,
02/15/36
(b)
170
167,425
Series
2023-B,
Class
A3,
5.23%,
05/15/28
68
67,497
Ford
Credit
Floorplan
Master
Owner
Trust
A
(b)
Series
2023-1,
Class
A1,
4.92%,
05/15/28
155
152,100
Series
2023-1,
Class
A2,
(SOFR
30
day
Average
+
1.25%),
6.56%,
05/15/28
(a)
.
100
100,660
FS
Rialto
Issuer
LLC,
Series
2022-FL5,
Class
A,
(1-mo.
CME
Term
SOFR
+
2.30%),
7.63%,
06/19/37
(a)
(b)
...............
100
99,035
GM
Financial
Consumer
Automobile
Receivables
Trust
Series
2022-3,
Class
A3,
3.64%,
04/16/27
54
52,654
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2023-2,
Class
A3,
4.47%,
02/16/28
USD
107
$
104,607
Series
2023-3,
Class
A3,
5.45%,
06/16/28
137
136,777
GMF
Floorplan
Owner
Revolving
Trust,
Series
2023-1,
Class
A1,
5.34%,
06/15/28
(b)
....
100
99,111
GoodLeap
Sustainable
Home
Solutions
Trust
(b)
Series
2021-3CS,
Class
A,
2.10%,
05/20/48
153
113,783
Series
2021-5CS,
Class
A,
2.31%,
10/20/48
78
58,528
Series
2022-1GS,
Class
A,
2.70%,
01/20/49
42
32,650
Series
2022-2CS,
Class
A,
4.00%,
04/20/49
22
19,251
Series
2022-3CS,
Class
A,
4.95%,
07/20/49
53
47,574
Series
2023-3C,
Class
A,
6.50%,
07/20/55
34
33,760
Honda
Auto
Receivables
Owner
Trust
Series
2023-1,
Class
A3,
5.04%,
04/21/27
65
64,341
Series
2023-2,
Class
A3,
4.93%,
11/15/27
48
47,361
Hyundai
Auto
Receivables
Trust
Series
2022-B,
Class
A3,
3.72%,
11/16/26
55
53,689
Series
2023-B,
Class
A3,
5.48%,
04/17/28
47
46,931
John
Deere
Owner
Trust,
Series
2023-B,
Class
A3,
5.18%,
03/15/28
..............
34
33,702
Loanpal
Solar
Loan
Ltd.,
Series
2021-1GS,
Class
A,
2.29%,
01/20/48
(b)
..........
128
96,059
Mosaic
Solar
Loan
Trust,
Series
2021-1A,
Class
A,
1.51%,
12/20/46
(b)
..........
89
70,289
Mosaic
Solar
Loans
LLC,
Series
2017-2A,
Class
C,
2.00%,
06/22/43
(b)
..........
9
9,182
Navient
Private
Education
Refi
Loan
Trust
(b)
Series
2020-CA,
Class
A2B,
(1-mo.
CME
Term
SOFR
+
1.71%),
7.05%,
11/15/68
(a)
182
182,113
Series
2021-CA,
Class
A,
1.06%,
10/15/69
176
149,166
Series
2021-EA,
Class
A,
0.97%,
12/16/69
89
74,357
Series
2021-GA,
Class
A,
1.58%,
04/15/70
92
77,619
Series
2022-A,
Class
A,
2.23%,
07/15/70
.
120
103,901
Series
2022-BA,
Class
A,
4.16%,
10/15/70
104
97,429
Navistar
Financial
Dealer
Note
Master
Owner
Trust
II,
Series
2023-1,
Class
A,
6.18%,
08/25/28
(b)
.....................
18
17,989
Nelnet
Student
Loan
Trust,
Series
2021-DA,
Class
AFX,
1.63%,
04/20/62
(b)
........
94
84,108
Neuberger
Berman
Loan
Advisers
CLO
26
Ltd.,
Series
2017-26A,
Class
AR,
(3-mo.
CME
Term
SOFR
+
1.18%),
6.49%,
10/18/30
(a)
(b)
244
242,309
Octagon
Investment
Partners
XV
Ltd.,
Series
2013-1A,
Class
A1RR,
(3-mo.
CME
Term
SOFR
+
1.23%),
6.55%,
07/19/30
(a)
(b)
...
230
228,990
OneMain
Financial
Issuance
Trust
(b)
Series
2022-S1,
Class
A,
4.13%,
05/14/35
120
115,139
Series
2023-1A,
Class
A,
5.50%,
06/14/38
100
97,650
Series
2023-2A,
Class
A2,
(SOFR
30
day
Average
+
1.50%),
6.81%,
09/15/36
(a)
.
120
119,812
PFS
Financing
Corp.,
Series
2023-A,
Class
A,
5.80%,
03/15/28
(b)
................
125
124,776
Porsche
Financial
Auto
Securitization
Trust,
Series
2023-1A,
Class
A3,
4.81%,
09/22/28
(b)
.....................
125
123,231
Prodigy
Finance
DAC,
Series
2021-1A,
Class
A,
(1-mo.
CME
Term
SOFR
+
1.36%),
6.68%,
07/25/51
(a)
(b)
...............
71
70,449
Romark
CLO
II
Ltd.,
Series
2018-2A,
Class
A1,
(3-mo.
CME
Term
SOFR
+
1.44%),
6.79%,
07/25/31
(a)
(b)
....................
250
248,725
SMB
Private
Education
Loan
Trust
(a)(b)
Series
2022-B,
Class
A1B,
(SOFR
30
day
Average
+
1.45%),
6.76%,
02/16/55
..
153
152,044
Series
2023-B,
Class
A1B,
(SOFR
30
day
Average
+
1.80%),
7.11%,
10/16/56
..
96
96,431
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
27
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
SoFi
Professional
Loan
Program
LLC
(b)
Series
2019-A,
Class
A2FX,
3.69%,
06/15/48
....................
USD
128
$
122,089
Series
2019-B,
Class
A2FX,
3.09%,
08/17/48
....................
32
29,595
SoFi
Professional
Loan
Program
Trust
(b)
Series
2020-A,
Class
A2FX,
2.54%,
05/15/46
....................
56
51,390
Series
2021-B,
Class
AFX,
1.14%,
02/15/47
109
89,221
Sunnova
Sol
IV
Issuer
LLC,
Series
2022-A,
Class
A,
2.79%,
02/22/49
(b)
..........
89
76,074
Toyota
Auto
Loan
Extended
Note
Trust,
Series
2023-1A,
Class
A,
4.93%,
06/25/36
(b)
...
100
97,652
Toyota
Auto
Receivables
Owner
Trust
Series
2023-B,
Class
A3,
4.71%,
02/15/28
70
68,613
Series
2023-C,
Class
A3,
5.16%,
04/17/28
36
35,698
Trestles
CLO
III
Ltd.,
Series
2020-3A,
Class
A1,
(3-mo.
LIBOR
USD
at
1.33%
Floor
+
1.33%),
6.92%,
01/20/33
(a)
(b)
.........
250
248,732
Volkswagen
Auto
Loan
Enhanced
Trust,
Series
2023-1,
Class
A3,
5.02%,
06/20/28
.....
100
98,952
Whitebox
CLO
II
Ltd.,
Series
2020-2A,
Class
A1R,
(3-mo.
CME
Term
SOFR
at
1.22%
Floor
+
1.48%),
6.83%,
10/24/34
(a)
(b)
....
250
247,980
Total
Asset-Backed
Securities
—
19
.6
%
(Cost:
$
9,207,033
)
..............................
8,927,312
Corporate
Bonds
Aerospace
&
Defense
—
0.3%
(b)
Bombardier,
Inc.
7.13%
,
06/15/26
.................
18
17,439
7.88%
,
04/15/27
.................
15
14,636
7.50%
,
02/01/29
.................
6
5,694
TransDigm,
Inc.
6.25%
,
03/15/26
.................
65
63,868
6.75%
,
08/15/28
.................
26
25,597
6.88%
,
12/15/30
.................
4
3,922
131,156
Automobile
Components
—
0.2%
Clarios
Global
LP
(b)
6.25%
,
05/15/26
.................
65
63,599
6.75%
,
05/15/28
.................
13
12,691
Goodyear
Tire
&
Rubber
Co.
(The),
9.50%,
05/31/25
.....................
8
8,120
84,410
Automobiles
—
0.9%
(b)
BMW
US
Capital
LLC,
5.05%,
08/11/28
...
100
97,793
Mercedes-Benz
Finance
North
America
LLC,
5.20%,
08/03/26
................
150
148,484
Nissan
Motor
Acceptance
Co.
LLC,
2.00%,
03/09/26
.....................
165
147,481
393,758
Banks
—
8.2%
Bank
of
America
Corp.
(a)
(1-day
SOFR
+
0.91%),
0.98%
,
09/25/25
200
189,428
(3-mo.
CME
Term
SOFR
+
1.13%),
2.46%
,
10/22/25
....................
200
192,068
(1-day
SOFR
+
0.65%),
1.53%
,
12/06/25
240
226,617
(1-day
SOFR
+
1.63%),
5.20%
,
04/25/29
20
19,266
Bank
of
Montreal,
5.20%,
12/12/24
......
115
114,000
Banque
Federative
du
Credit
Mutuel
SA
(c)
0.10%
,
10/08/27
.................
EUR
100
90,456
4.13%
,
09/18/30
.................
100
104,429
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
Barclays
plc,
(1-Year
EUR
Swap
Annual
+
1.75%),
4.92%,
08/08/30
(a)
(c)
.........
EUR
100
$
104,151
BNP
Paribas
SA,
(3-mo.
EURIBOR
+
0.80%),
0.38%,
10/14/27
(a)
(c)
..............
100
93,539
CaixaBank
SA,
(3-mo.
EURIBOR
+
0.85%),
0.38%,
11/18/26
(a)
(c)
..............
100
96,428
Citigroup,
Inc.
(a)
(1-day
SOFR
+
0.53%),
1.28%
,
11/03/25
USD
35
33,056
(1-day
SOFR
+
1.53%),
3.29%
,
03/17/26
60
57,419
(1-day
SOFR
+
1.55%),
5.61%
,
09/29/26
110
108,881
(1-day
SOFR
+
0.77%),
1.46%
,
06/09/27
60
53,036
Commerzbank
AG,
(3-mo.
EURIBOR
+
1.95%),
5.25%,
03/25/29
(a)
(c)
..............
EUR
100
105,496
Fifth
Third
Bancorp,
(1-day
SOFR
+
2.34%),
6.34%,
07/27/29
(a)
...............
USD
15
14,818
HSBC
Holdings
plc
(a)
(3-mo.
CME
Term
SOFR
+
1.40%),
2.63%
,
11/07/25
....................
200
191,640
(1-day
SOFR
+
1.93%),
2.10%
,
06/04/26
200
186,414
(Sterling
Overnight
Index
Average
+
2.12%),
6.80%
,
09/14/31
.........
GBP
100
123,267
(3-mo.
EURIBOR
+
1.94%),
4.86%
,
05/23/33
(c)
...................
EUR
100
103,876
HSBC
USA,
Inc.,
5.63%,
03/17/25
......
USD
200
198,816
ING
Groep
NV,
(3-mo.
EURIBOR
+
1.10%),
2.13%,
05/23/26
(a)
(c)
..............
EUR
100
101,889
JPMorgan
Chase
&
Co.
(a)
(3-mo.
CME
Term
SOFR
+
1.51%),
3.96%
,
01/29/27
....................
USD
100
95,584
(3-mo.
CME
Term
SOFR
+
1.60%),
3.78%
,
02/01/28
....................
215
200,244
(1-day
SOFR
+
1.45%),
5.30%
,
07/24/29
90
87,568
PNC
Financial
Services
Group,
Inc.
(The),
(1-
day
SOFR
+
1.84%),
5.58%,
06/12/29
(a)
..
100
97,011
Royal
Bank
of
Canada,
6.00%,
11/01/27
...
56
56,404
Societe
Generale
SA,
(3-mo.
EURIBOR
+
1.28%),
0.88%,
09/22/28
(a)
(c)
.........
EUR
100
91,238
Toronto-Dominion
Bank
(The),
1.25%,
12/13/24
USD
150
142,003
Truist
Financial
Corp.,
(1-day
SOFR
+
2.05%),
6.05%,
06/08/27
(a)
...............
190
187,933
US
Bancorp,
(1-day
SOFR
+
2.02%),
5.78%,
06/12/29
(a)
....................
75
73,003
Westpac
Banking
Corp.,
4.18%,
05/22/28
(b)
.
200
190,886
3,730,864
Beverages
—
0.3%
Anheuser-Busch
InBev
Worldwide,
Inc.,
4.00%,
04/13/28
.....................
150
141,943
Biotechnology
—
1.5%
AbbVie,
Inc.,
1.25%,
06/01/24
.........
EUR
100
103,675
Amgen,
Inc.,
5.15%,
03/02/28
.........
USD
140
137,689
Gilead
Sciences,
Inc.
3.70%
,
04/01/24
.................
385
380,786
2.95%
,
03/01/27
.................
50
46,137
668,287
Broadline
Retail
—
0.0%
(b)
Go
Daddy
Operating
Co.
LLC,
3.50%,
03/01/29
8
6,731
Match
Group
Holdings
II
LLC,
4.63%,
06/01/28
19
17,034
23,765
Building
Products
—
0.2%
Advanced
Drainage
Systems,
Inc.
(b)
5.00%
,
09/30/27
.................
8
7,473
6.38%
,
06/15/30
.................
11
10,565
Carrier
Global
Corp.,
2.24%,
02/15/25
....
36
34,211
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
28
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Building
Products
(continued)
Standard
Industries,
Inc.,
4.75%,
01/15/28
(b)
USD
20
$
18,040
70,289
Capital
Markets
—
6.0%
Charles
Schwab
Corp.
(The),
5.88%,
08/24/26
165
164,456
Credit
Suisse
AG
0.45%
,
05/19/25
(c)
................
EUR
100
99,063
5.00%
,
07/09/27
.................
USD
250
240,144
Deutsche
Bank
AG
Series
E,
0.96%
,
11/08/23
..........
375
372,762
(1-day
SOFR
+
2.58%),
3.96%
,
11/26/25
(a)
150
144,870
(3-mo.
EURIBOR
+
1.38%),
1.88%
,
02/23/28
(a)
(c)
..................
EUR
100
94,397
Goldman
Sachs
Group,
Inc.
(The)
(a)
(1-day
SOFR
+
1.51%),
4.39%
,
06/15/27
USD
155
149,149
(1-day
SOFR
+
1.11%),
2.64%
,
02/24/28
95
84,712
Morgan
Stanley
(a)
(1-day
SOFR
+
0.56%),
1.16%
,
10/21/25
275
259,592
(3-mo.
EURIBOR
+
0.83%),
1.34%
,
10/23/26
....................
EUR
100
99,406
(1-day
SOFR
+
1.73%),
5.12%
,
02/01/29
USD
250
240,754
(1-day
SOFR
+
1.63%),
5.45%
,
07/20/29
70
68,213
Nasdaq,
Inc.,
5.35%,
06/28/28
.........
100
98,173
State
Street
Corp.,
(1-day
SOFR
+
1.35%),
5.75%,
11/04/26
(a)
...............
70
69,754
UBS
AG,
0.01%,
06/29/26
(c)
..........
EUR
200
188,622
UBS
Group
AG,
(1-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
0.85%),
1.49%,
08/10/27
(a)
(b)
.........
USD
400
349,144
2,723,211
Chemicals
—
0.2%
Chemours
Co.
(The),
4.63%,
11/15/29
(b)
...
2
1,609
Element
Solutions,
Inc.,
3.88%,
09/01/28
(b)
.
45
38,834
HB
Fuller
Co.,
4.00%,
02/15/27
........
13
11,968
WR
Grace
Holdings
LLC
(b)
4.88%
,
06/15/27
.................
8
7,339
5.63%
,
08/15/29
.................
13
10,514
70,264
Commercial
Services
&
Supplies
—
0.6%
ADT
Security
Corp.
(The),
4.13%,
08/01/29
(b)
8
6,764
Allied
Universal
Holdco
LLC,
6.63%,
07/15/26
(b)
32
30,321
APX
Group,
Inc.,
6.75%,
02/15/27
(b)
......
8
7,682
Aramark
Services,
Inc.
(b)
6.38%
,
05/01/25
.................
9
9,144
5.00%
,
02/01/28
.................
17
15,722
Covanta
Holding
Corp.,
4.88%,
12/01/29
(b)
.
5
4,102
Garda
World
Security
Corp.
(b)
4.63%
,
02/15/27
.................
5
4,575
7.75%
,
02/15/28
.................
4
3,922
GFL
Environmental,
Inc.
(b)
5.13%
,
12/15/26
.................
14
13,336
4.00%
,
08/01/28
.................
7
6,116
Legends
Hospitality
Holding
Co.
LLC,
5.00%,
02/01/26
(b)
....................
6
5,880
Neptune
Bidco
US,
Inc.,
9.29%,
04/15/29
(b)
.
2
1,811
Prime
Security
Services
Borrower
LLC
(b)
5.75%
,
04/15/26
.................
6
5,821
6.25%
,
01/15/28
.................
12
11,114
Republic
Services,
Inc.,
3.38%,
11/15/27
...
150
138,475
264,785
Communications
Equipment
—
0.1%
(b)
CommScope,
Inc.,
6.00%,
03/01/26
......
8
7,466
Viasat,
Inc.,
5.63%,
04/15/27
..........
15
12,996
Security
Par
(000)
Par
(000)
Value
Communications
Equipment
(continued)
Viavi
Solutions,
Inc.,
3.75%,
10/01/29
....
USD
6
$
4,877
25,339
Consumer
Finance
—
1.5%
American
Express
Co.,
2.55%,
03/04/27
...
190
171,307
General
Motors
Financial
Co.,
Inc.
3.50%
,
11/07/24
.................
100
97,100
6.05%
,
10/10/25
.................
100
99,557
John
Deere
Capital
Corp.
5.15%
,
09/08/26
.................
65
64,795
4.95%
,
07/14/28
.................
35
34,517
OneMain
Finance
Corp.
6.88%
,
03/15/25
.................
2
1,984
7.13%
,
03/15/26
.................
12
11,753
SLM
Corp.,
3.13%,
11/02/26
..........
7
6,072
Synchrony
Financial,
4.88%,
06/13/25
....
125
119,851
Toyota
Motor
Credit
Corp.,
5.40%,
11/10/25
.
100
99,953
706,889
Consumer
Staples
Distribution
&
Retail
—
0.1%
(b)
Albertsons
Cos.,
Inc.
3.25%
,
03/15/26
.................
6
5,558
5.88%
,
02/15/28
.................
34
32,724
6.50%
,
02/15/28
.................
3
2,965
United
Natural
Foods,
Inc.,
6.75%,
10/15/28
6
4,574
US
Foods,
Inc.
6.88%
,
09/15/28
.................
4
3,992
4.75%
,
02/15/29
.................
2
1,787
51,600
Containers
&
Packaging
—
0.5%
Ball
Corp.
4.88%
,
03/15/26
.................
72
69,148
6.00%
,
06/15/29
.................
5
4,854
Clydesdale
Acquisition
Holdings,
Inc.,
6.63%,
04/15/29
(b)
....................
16
14,877
Crown
Americas
LLC,
4.25%,
09/30/26
...
30
28,200
Graphic
Packaging
International
LLC,
3.50%,
03/15/28
(b)
....................
13
11,405
Mauser
Packaging
Solutions
Holding
Co.,
7.88%,
08/15/26
(b)
...............
47
45,343
Owens-Brockway
Glass
Container,
Inc.,
6.63%,
05/13/27
(b)
....................
15
14,623
Sealed
Air
Corp.
(b)
4.00%
,
12/01/27
.................
20
17,846
6.13%
,
02/01/28
.................
3
2,905
209,201
Distributors
—
0.0%
Ritchie
Bros
Holdings,
Inc.,
6.75%,
03/15/28
(b)
2
1,995
Diversified
REITs
—
0.2%
HAT
Holdings
I
LLC,
3.38%,
06/15/26
(b)
...
13
11,555
Prologis
LP,
4.88%,
06/15/28
..........
85
82,821
94,376
Diversified
Telecommunication
Services
—
0.6%
AT&T,
Inc.,
1.80%,
09/05/26
..........
EUR
100
99,009
CCO
Holdings
LLC
(b)
5.13%
,
05/01/27
.................
USD
15
13,976
5.00%
,
02/01/28
.................
19
17,255
6.38%
,
09/01/29
.................
12
11,189
Frontier
Communications
Holdings
LLC
(b)
5.88%
,
10/15/27
.................
17
15,461
5.00%
,
05/01/28
.................
7
5,977
Level
3
Financing,
Inc.
(b)
3.40%
,
03/01/27
.................
12
11,237
4.63%
,
09/15/27
.................
8
5,753
3.63%
,
01/15/29
.................
1
560
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
29
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Diversified
Telecommunication
Services
(continued)
10.50%
,
05/15/30
................
USD
9
$
9,059
Uniti
Group
LP,
10.50%,
02/15/28
(b)
......
7
6,856
Verizon
Communications,
Inc.,
2.10%,
03/22/28
45
38,652
Zayo
Group
Holdings,
Inc.,
4.00%,
03/01/27
(b)
57
42,288
277,272
Electric
Utilities
—
2.2%
EDP
-
Energias
de
Portugal
SA,
1.63%,
04/15/27
(c)
....................
EUR
100
97,283
Eversource
Energy,
5.45%,
03/01/28
.....
USD
55
54,363
Exelon
Corp.,
5.15%,
03/15/28
.........
150
147,205
FLUVIUS
System
Operator
CVBA,
3.88%,
03/18/31
(c)
....................
EUR
100
103,295
NextEra
Energy
Capital
Holdings,
Inc.
4.20%
,
06/20/24
.................
USD
230
226,935
6.05%
,
03/01/25
.................
75
75,114
4.90%
,
02/28/28
.................
50
48,391
NextEra
Energy
Operating
Partners
LP,
4.25%,
07/15/24
(b)
....................
13
12,723
NRG
Energy,
Inc.,
5.75%,
01/15/28
......
29
27,190
Pacific
Gas
&
Electric
Co.,
6.10%,
01/15/29
.
85
83,021
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
(b)
....................
66
57,321
Texas
Electric
Market
Stabilization
Funding
N
LLC,
Series
A-1,
4.27%,
08/01/34
(b)
....
94
88,042
1,020,883
Electrical
Equipment
—
0.1%
(b)
Sensata
Technologies
BV
5.00%
,
10/01/25
.................
15
14,542
4.00%
,
04/15/29
.................
3
2,583
Vertiv
Group
Corp.,
4.13%,
11/15/28
.....
18
15,822
32,947
Electronic
Equipment,
Instruments
&
Components
—
0.0%
Sensata
Technologies,
Inc.,
4.38%,
02/15/30
(b)
5
4,318
Entertainment
—
0.1%
(b)
Lions
Gate
Capital
Holdings
LLC,
5.50%,
04/15/29
.....................
3
1,978
Live
Nation
Entertainment,
Inc.
6.50%
,
05/15/27
.................
2
1,972
4.75%
,
10/15/27
.................
13
11,903
3.75%
,
01/15/28
.................
23
20,298
36,151
Financial
Services
—
0.8%
Block,
Inc.,
2.75%,
06/01/26
..........
23
20,686
Enact
Holdings,
Inc.,
6.50%,
08/15/25
(b)
...
13
12,804
Fidelity
National
Information
Services,
Inc.
1.15%
,
03/01/26
.................
200
179,182
4.70%
,
07/15/27
.................
41
39,741
MGIC
Investment
Corp.,
5.25%,
08/15/28
..
10
9,312
Nationstar
Mortgage
Holdings,
Inc.,
6.00%,
01/15/27
(b)
....................
3
2,835
PayPal
Holdings,
Inc.,
2.65%,
10/01/26
...
110
101,451
Rocket
Mortgage
LLC,
2.88%,
10/15/26
(b)
..
9
7,926
Shift4
Payments
LLC,
4.63%,
11/01/26
(b)
...
15
14,143
388,080
Food
Products
—
0.6%
B&G
Foods,
Inc.,
8.00%,
09/15/28
(b)
.....
2
2,003
Chobani
LLC,
4.63%,
11/15/28
(b)
........
14
12,347
Darling
Ingredients,
Inc.,
5.25%,
04/15/27
(b)
.
23
21,917
General
Mills,
Inc.,
5.24%,
11/18/25
......
95
94,144
Kraft
Heinz
Foods
Co.,
3.00%,
06/01/26
...
100
93,742
Lamb
Weston
Holdings,
Inc.,
4.88%,
05/15/28
(b)
37
34,127
258,280
Security
Par
(000)
Par
(000)
Value
Ground
Transportation
—
0.1%
(b)
Uber
Technologies,
Inc.
8.00%
,
11/01/26
.................
USD
6
$
6,071
6.25%
,
01/15/28
.................
28
27,380
4.50%
,
08/15/29
.................
12
10,726
Williams
Scotsman
International,
Inc.,
4.63%,
08/15/28
.....................
14
12,530
56,707
Health
Care
Equipment
&
Supplies
—
0.2%
Avantor
Funding,
Inc.,
4.63%,
07/15/28
(b)
..
26
23,704
Bausch
&
Lomb
Escrow
Corp.,
8.38%,
10/01/28
(b)
....................
20
20,059
Hologic,
Inc.,
4.63%,
02/01/28
(b)
........
9
8,281
Medline
Borrower
LP
(b)
3.88%
,
04/01/29
.................
14
11,836
5.25%
,
10/01/29
.................
12
10,372
Teleflex,
Inc.
4.63%
,
11/15/27
.................
2
1,835
4.25%
,
06/01/28
(b)
................
12
10,735
86,822
Health
Care
Providers
&
Services
—
1.9%
Community
Health
Systems,
Inc.
(b)
6.00%
,
01/15/29
.................
17
13,729
5.25%
,
05/15/30
.................
6
4,561
CVS
Health
Corp.,
6.25%,
06/01/27
......
50
50,937
Elevance
Health,
Inc.
5.35%
,
10/15/25
.................
225
223,581
3.65%
,
12/01/27
.................
100
92,690
Encompass
Health
Corp.,
4.50%,
02/01/28
.
34
30,978
HCA,
Inc.
5.25%
,
04/15/25
.................
50
49,382
5.88%
,
02/15/26
.................
155
154,141
5.63%
,
09/01/28
.................
75
73,129
HealthEquity,
Inc.,
4.50%,
10/01/29
(b)
.....
17
14,643
Legacy
LifePoint
Health
LLC,
4.38%,
02/15/27
(b)
....................
2
1,720
LifePoint
Health,
Inc.
9.88%
,
08/15/30
(b)
................
4
3,873
Class
B,
11.00%
,
10/15/30
..........
7
7,000
Molina
Healthcare,
Inc.,
4.38%,
06/15/28
(b)
.
22
19,713
Tenet
Healthcare
Corp.
6.25%
,
02/01/27
.................
2
1,935
5.13%
,
11/01/27
.................
54
50,254
UnitedHealth
Group,
Inc.,
2.95%,
10/15/27
.
100
91,482
883,748
Health
Care
REITs
—
0.5%
Healthpeak
OP
LLC,
1.35%,
02/01/27
....
100
86,957
Welltower
OP
LLC
4.00%
,
06/01/25
.................
50
48,309
4.25%
,
04/01/26
.................
100
96,019
231,285
Hotels,
Restaurants
&
Leisure
—
0.3%
(b)
1011778
BC
ULC
3.88%
,
01/15/28
.................
8
7,176
4.38%
,
01/15/28
.................
35
31,547
4.00%
,
10/15/30
.................
8
6,648
Cedar
Fair
LP,
5.50%,
05/01/25
........
9
8,813
Hilton
Domestic
Operating
Co.,
Inc.
5.75%
,
05/01/28
.................
58
56,070
3.75%
,
05/01/29
.................
2
1,730
Lindblad
Expeditions
Holdings,
Inc.,
9.00%,
05/15/28
.....................
4
3,991
Lindblad
LLC,
6.75%,
02/15/27
.
6
5,618
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
6
5,985
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
30
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
Vail
Resorts,
Inc.,
6.25%,
05/15/25
......
USD
9
$
8,951
136,529
Household
Durables
—
0.0%
(b)
Dream
Finders
Homes,
Inc.,
8.25%,
08/15/28
2
2,014
Tempur
Sealy
International,
Inc.,
4.00%,
04/15/29
.....................
10
8,346
10,360
Independent
Power
and
Renewable
Electricity
Producers
—
0.2%
Clearway
Energy
Operating
LLC,
4.75%,
03/15/28
(b)
....................
90
80,492
TransAlta
Corp.,
7.75%,
11/15/29
.......
20
20,250
100,742
Insurance
—
0.4%
(b)
Alliant
Holdings
Intermediate
LLC
4.25%
,
10/15/27
.................
77
68,941
6.75%
,
04/15/28
.................
10
9,651
AmWINS
Group,
Inc.,
4.88%,
06/30/29
....
3
2,629
HUB
International
Ltd.,
7.25%,
06/15/30
...
29
28,947
Jones
Deslauriers
Insurance
Management,
Inc.,
8.50%,
03/15/30
.............
10
10,073
NFP
Corp.,
4.88%,
08/15/28
..........
52
45,778
166,019
IT
Services
—
0.4%
Central
Parent
LLC,
8.00%,
06/15/29
(b)
....
8
7,970
Gartner,
Inc.,
4.50%,
07/01/28
(b)
........
26
23,720
International
Business
Machines
Corp.,
0.95%,
05/23/25
.....................
EUR
100
100,582
Northwest
Fiber
LLC,
4.75%,
04/30/27
(b)
...
USD
22
19,580
Twilio,
Inc.,
3.63%,
03/15/29
..........
23
19,254
171,106
Leisure
Products
—
0.0%
Acushnet
Co.,
7.38%,
10/15/28
(b)
.......
2
2,015
Life
Sciences
Tools
&
Services
—
0.1%
(b)
Charles
River
Laboratories
International,
Inc.,
4.25%,
05/01/28
................
32
28,697
Fortrea
Holdings,
Inc.,
7.50%,
07/01/30
...
4
3,892
Star
Parent,
Inc.,
9.00%,
10/01/30
.......
15
15,157
47,746
Machinery
—
0.1%
Mueller
Water
Products,
Inc.,
4.00%,
06/15/29
(b)
6
5,225
Otis
Worldwide
Corp.,
5.25%,
08/16/28
...
35
34,404
Wabash
National
Corp.,
4.50%,
10/15/28
(b)
.
10
8,424
48,053
Media
—
0.3%
Clear
Channel
Outdoor
Holdings,
Inc.
(b)
5.13%
,
08/15/27
.................
39
34,632
9.00%
,
09/15/28
.................
19
18,816
Comcast
Corp.,
4.15%,
10/15/28
.......
45
42,627
DirecTV
Financing
LLC,
5.88%,
08/15/27
(b)
.
12
10,610
GCI
LLC,
4.75%,
10/15/28
(b)
..........
2
1,725
Hughes
Satellite
Systems
Corp.,
5.25%,
08/01/26
.....................
2
1,798
Nexstar
Media,
Inc.,
5.63%,
07/15/27
(b)
....
3
2,670
Outfront
Media
Capital
LLC,
5.00%,
08/15/27
(b)
13
11,454
Radiate
Holdco
LLC,
4.50%,
09/15/26
(b)
...
2
1,519
Sirius
XM
Radio,
Inc.
(b)
3.13%
,
09/01/26
.................
7
6,239
5.00%
,
08/01/27
.................
2
1,827
TEGNA,
Inc.,
4.75%,
03/15/26
(b)
........
2
1,895
Univision
Communications,
Inc.
(b)
6.63%
,
06/01/27
.................
6
5,588
Security
Par
(000)
Par
(000)
Value
Media
(continued)
8.00%
,
08/15/28
.................
USD
7
$
6,786
148,186
Metals
&
Mining
—
0.3%
Big
River
Steel
LLC,
6.63%,
01/31/29
(b)
...
61
60,270
Novelis
Corp.
(b)
3.25%
,
11/15/26
.................
37
33,045
3.88%
,
08/15/31
.................
21
16,770
Steel
Dynamics,
Inc.,
2.40%,
06/15/25
....
50
46,977
157,062
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.0%
Starwood
Property
Trust,
Inc.,
5.50%,
11/01/23
(b)
....................
2
1,996
Multi-Utilities
—
0.8%
E.ON
SE,
0.88%,
01/08/25
(c)
..........
EUR
30
30,476
Engie
SA,
1.75%,
03/27/28
(c)
..........
100
96,259
San
Diego
Gas
&
Electric
Co.,
4.95%,
08/15/28
USD
95
92,483
Sempra,
3.30%,
04/01/25
............
50
48,062
Veolia
Environnement
SA,
0.00%,
01/14/27
(c)
EUR
100
93,078
360,358
Oil,
Gas
&
Consumable
Fuels
—
0.3%
Eni
SpA,
1.00%,
03/14/25
(c)
...........
100
101,116
Western
Midstream
Operating
LP,
6.35%,
01/15/29
.....................
USD
25
25,052
126,168
Passenger
Airlines
—
0.1%
(b)
American
Airlines,
Inc.
5.50%
,
04/20/26
.................
12
11,848
7.25%
,
02/15/28
.................
2
1,912
5.75%
,
04/20/29
.................
6
5,581
Mileage
Plus
Holdings
LLC,
6.50%,
06/20/27
9
8,705
United
Airlines,
Inc.
4.38%
,
04/15/26
.................
40
36,992
4.63%
,
04/15/29
.................
3
2,578
67,616
Personal
Care
Products
—
0.0%
Coty,
Inc.,
6.63%,
07/15/30
(b)
..........
6
5,858
Pharmaceuticals
—
0.2%
Catalent
Pharma
Solutions,
Inc.
(b)
5.00%
,
07/15/27
.................
9
8,257
3.50%
,
04/01/30
.................
2
1,646
Pfizer
Investment
Enterprises
Pte.
Ltd.,
4.45%,
05/19/28
.....................
61
58,811
Teva
Pharmaceutical
Finance
Netherlands
III
BV,
3.15%,
10/01/26
.............
15
13,338
82,052
Professional
Services
—
0.1%
(b)
AMN
Healthcare,
Inc.,
4.63%,
10/01/27
...
11
9,941
CoreLogic,
Inc.,
4.50%,
05/01/28
.......
11
8,347
Dun
&
Bradstreet
Corp.
(The),
5.00%,
12/15/29
7
6,035
24,323
Real
Estate
Management
&
Development
—
0.1%
Anywhere
Real
Estate
Group
LLC
Series
AI,
7.00%
,
04/15/30
..........
6
5,054
7.00%
,
04/15/30
(b)
................
5
4,512
Cushman
&
Wakefield
US
Borrower
LLC,
6.75%,
05/15/28
(b)
...............
16
14,762
Greystar
Real
Estate
Partners
LLC,
7.75%,
09/01/30
(b)
....................
3
2,964
Howard
Hughes
Corp.
(The),
5.38%,
08/01/28
(b)
12
10,573
37,865
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
31
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Retail
REITs
—
0.0%
Brookfield
Property
REIT,
Inc.,
4.50%,
04/01/27
(b)
....................
USD
4
$
3,333
Semiconductors
&
Semiconductor
Equipment
—
2.0%
Broadcom
Corp.
3.13%
,
01/15/25
.................
5
4,821
3.88%
,
01/15/27
.................
20
18,792
Entegris
Escrow
Corp.,
4.75%,
04/15/29
(b)
..
27
24,273
Entegris,
Inc.,
4.38%,
04/15/28
(b)
.......
8
7,121
Intel
Corp.,
4.88%,
02/10/28
..........
70
68,667
Lam
Research
Corp.
3.80%
,
03/15/25
.................
6
5,844
3.75%
,
03/15/26
.................
143
137,592
NCR
Atleos
Escrow
Corp.,
9.50%,
04/01/29
(b)
4
3,869
NXP
BV
4.88%
,
03/01/24
.................
225
223,447
2.70%
,
05/01/25
.................
330
313,058
Synaptics,
Inc.,
4.00%,
06/15/29
(b)
.......
5
4,125
Texas
Instruments,
Inc.,
4.60%,
02/15/28
..
100
98,013
909,622
Software
—
1.9%
Alteryx,
Inc.,
8.75%,
03/15/28
(b)
........
9
8,960
Boxer
Parent
Co.,
Inc.,
7.13%,
10/02/25
(b)
..
6
5,970
Capstone
Borrower,
Inc.,
8.00%,
06/15/30
(b)
.
5
4,881
Central
Parent,
Inc.,
7.25%,
06/15/29
(b)
....
6
5,817
Clarivate
Science
Holdings
Corp.,
3.88%,
07/01/28
(b)
....................
41
35,494
Cloud
Software
Group,
Inc.,
6.50%,
03/31/29
(b)
71
62,787
Consensus
Cloud
Solutions,
Inc.,
6.00%,
10/15/26
(b)
....................
13
11,966
Elastic
NV,
4.13%,
07/15/29
(b)
.........
18
15,330
Fair
Isaac
Corp.,
4.00%,
06/15/28
(b)
......
12
10,729
Gen
Digital,
Inc.,
6.75%,
09/30/27
(b)
......
10
9,804
MicroStrategy,
Inc.,
6.13%,
06/15/28
(b)
....
7
6,217
NCR
Corp.,
6.13%,
09/01/29
(b)
.........
5
5,128
Open
Text
Corp.,
6.90%,
12/01/27
(b)
.....
15
15,034
Oracle
Corp.
1.65%
,
03/25/26
.................
110
99,636
2.65%
,
07/15/26
.................
277
255,393
PTC,
Inc.,
4.00%,
02/15/28
(b)
..........
14
12,547
Sabre
GLBL,
Inc.,
8.63%,
06/01/27
(b)
.....
7
5,935
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
(b)
23
21,704
Veritas
US,
Inc.,
7.50%,
09/01/25
(b)
......
2
1,671
VMware,
Inc.
1.40%
,
08/15/26
.................
155
136,726
3.90%
,
08/21/27
.................
55
51,239
Workday,
Inc.,
3.50%,
04/01/27
........
80
74,643
ZoomInfo
Technologies
LLC,
3.88%,
02/01/29
(b)
16
13,335
870,946
Specialized
REITs
—
2.1%
American
Tower
Corp.
1.60%
,
04/15/26
.................
330
296,295
0.45%
,
01/15/27
.................
EUR
100
92,879
3.55%
,
07/15/27
.................
USD
50
45,925
Crown
Castle,
Inc.
3.20%
,
09/01/24
.................
50
48,724
1.05%
,
07/15/26
.................
170
149,171
4.80%
,
09/01/28
.................
60
56,950
Equinix,
Inc.
1.00%
,
09/15/25
.................
200
181,698
1.55%
,
03/15/28
.................
65
54,170
Iron
Mountain,
Inc.,
7.00%,
02/15/29
(b)
....
29
28,363
SBA
Communications
Corp.
3.88%
,
02/15/27
.................
20
18,326
Security
Par
(000)
Par
(000)
Value
Specialized
REITs
(continued)
3.13%
,
02/01/29
.................
USD
6
$
5,004
977,505
Specialty
Retail
—
0.6%
GYP
Holdings
III
Corp.,
4.63%,
05/01/29
(b)
..
8
6,891
Home
Depot,
Inc.
(The),
2.88%,
04/15/27
..
55
50,919
Lowe's
Cos.,
Inc.,
3.10%,
05/03/27
......
180
165,765
SRS
Distribution,
Inc.,
4.63%,
07/01/28
(b)
..
42
36,284
259,859
Technology
Hardware,
Storage
&
Peripherals
—
0.0%
Seagate
HDD
Cayman,
8.25%,
12/15/29
(b)
.
9
9,243
Textiles,
Apparel
&
Luxury
Goods
—
0.1%
(b)
Crocs,
Inc.,
4.25%,
03/15/29
..........
10
8,274
Hanesbrands,
Inc.,
4.88%,
05/15/26
.....
11
10,084
William
Carter
Co.
(The),
5.63%,
03/15/27
..
14
13,465
31,823
Trading
Companies
&
Distributors
—
0.3%
Aviation
Capital
Group
LLC,
1.95%,
09/20/26
(b)
50
43,652
Beacon
Roofing
Supply,
Inc.,
6.50%,
08/01/30
(b)
4
3,877
Herc
Holdings,
Inc.,
5.50%,
07/15/27
(b)
....
14
13,239
Imola
Merger
Corp.,
4.75%,
05/15/29
(b)
....
8
7,011
United
Rentals
North
America,
Inc.
4.88%
,
01/15/28
.................
21
19,616
6.00%
,
12/15/29
(b)
................
15
14,605
WESCO
Distribution,
Inc.,
7.25%,
06/15/28
(b)
24
24,117
126,117
Wireless
Telecommunication
Services
—
0.3%
Rogers
Communications,
Inc.,
3.20%,
03/15/27
145
132,625
T-Mobile
USA,
Inc.,
2.25%,
02/15/26
.....
23
21,173
153,798
Total
Corporate
Bonds
—
38
.9
%
(Cost:
$
18,632,084
)
..............................
17,704,925
Foreign
Agency
Obligations
France
—
0.2%
Electricite
de
France
SA,
1.00%
,
10/13/26
(c)
.
EUR
100
97,045
Germany
—
0.4%
Kreditanstalt
fuer
Wiederaufbau,
0.00%
,
09/15/28
(c)
.....................
200
179,754
Italy
—
0.2%
ACEA
SpA,
0.00%
,
09/28/25
(c)
..........
100
97,336
Supranational
—
0.9%
European
Investment
Bank,
0.50%
,
11/15/23
(c)
400
421,335
Total
Foreign
Agency
Obligations
—
1
.7
%
(Cost:
$
879,000
)
................................
795,470
Non-Agency
Mortgage-Backed
Securities
Collateralized
Mortgage
Obligations
—
2.8%
(b)
Angel
Oak
Mortgage
Trust,
Series
2022-2,
Class
A1,
3.35%,
01/25/67
(a)
.........
USD
41
36,055
BRAVO
Residential
Funding
Trust,
Series
2023-NQM6,
Class
A1,
6.60%,
09/25/63
(d)
100
99,753
COLT
Mortgage
Loan
Trust,
Series
2022-3,
Class
A1,
3.90%,
02/25/67
(a)
.........
86
77,716
CSMC
Trust,
Series
2021-NQM8,
Class
A1,
1.84%,
10/25/66
(a)
................
79
63,684
Deephaven
Residential
Mortgage
Trust,
Series
2021-4,
Class
A1,
1.93%,
11/25/66
(a)
....
77
63,660
Flagstar
Mortgage
Trust,
Series
2021-12,
Class
A19,
5.00%,
11/25/51
(a)
.............
111
102,602
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
32
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Collateralized
Mortgage
Obligations
(continued)
GCAT
Trust,
Series
2021-NQM7,
Class
A1,
1.91%,
08/25/66
(a)
................
USD
61
$
51,689
JP
Morgan
Mortgage
Trust,
Series
2021-7,
Class
A3,
2.50%,
11/25/51
(a)
.........
107
80,482
MFA
Trust,
Series
2023-INV2,
Class
A1,
6.77%,
10/25/58
(d)
.....................
100
99,765
Mill
City
Mortgage
Loan
Trust,
Series
2017-3,
Class
A1,
2.75%,
01/25/61
(a)
.........
24
22,876
OBX
Trust,
Series
2023-NQM6,
Class
A1,
6.52%,
07/25/63
(d)
................
107
107,439
PRKCM
Trust,
Series
2023-AFC3,
Class
A1,
6.58%,
09/25/58
.................
100
99,317
RCKT
Mortgage
Trust,
Series
2022-4,
Class
A2,
3.50%,
06/25/52
(a)
.............
91
75,102
Towd
Point
Mortgage
Trust
(a)
Series
2015-1,
Class
A5,
4.31%,
10/25/53
100
97,890
Series
2018-1,
Class
A1,
3.00%,
01/25/58
56
54,181
Series
2018-2,
Class
A1,
3.25%,
03/25/58
57
54,468
Series
2018-6,
Class
A1A,
3.75%,
03/25/58
82
79,181
1,265,860
Commercial
Mortgage-Backed
Securities
—
3.6%
AREIT
LLC,
Series
2022-CRE7,
Class
A,
(1-mo.
CME
Term
SOFR
+
2.24%),
7.57%,
06/17/39
(a)
(b)
....................
100
99,750
BAMLL
Commercial
Mortgage
Securities
Trust,
Series
2015-200P,
Class
A,
3.22%,
04/14/33
(b)
.....................
100
93,216
BBCMS
Mortgage
Trust,
Series
2023-C19,
Class
A2B,
5.75%,
04/15/56
.........
50
48,773
Benchmark
Mortgage
Trust,
Series
2023-V3,
Class
A3,
6.36%,
07/15/56
(a)
.........
50
50,536
CENT
Trust,
Series
2023-CITY,
Class
A,
(1-mo.
CME
Term
SOFR
+
2.62%),
7.95%,
09/15/28
(a)
(b)
....................
40
39,983
Commercial
Mortgage
Trust,
Series
2015-
CR22,
Class
A5,
3.31%,
03/10/48
......
200
190,885
CSAIL
Commercial
Mortgage
Trust,
Series
2016-C5,
Class
A5,
3.76%,
11/15/48
....
200
190,071
Grace
Trust,
Series
2020-GRCE,
Class
A,
2.35%,
12/10/40
(b)
................
150
114,337
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
(b)
Series
2021-NYAH,
Class
A,
(1-mo.
CME
Term
SOFR
+
0.87%),
6.21%,
06/15/38
(a)
200
194,972
Series
2022-OPO,
Class
A,
3.02%,
01/05/39
100
80,118
MAD
Mortgage
Trust,
Series
2017-330M,
Class
A,
3.29%,
08/15/34
(a)
(b)
.............
250
224,375
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
Series
2014-C15,
Class
A4,
4.05%,
04/15/47
....................
102
101,126
Series
2015-C20,
Class
A4,
3.25%,
02/15/48
....................
180
172,602
Ready
Capital
Mortgage
Financing
LLC,
Series
2022-FL8,
Class
A,
(SOFR
30
day
Average
+
1.65%),
6.96%,
01/25/37
(a)
(b)
........
22
21,568
Wells
Fargo
Commercial
Mortgage
Trust,
Series
2016-LC25,
Class
A4,
3.64%,
12/15/59
......................
50
46,320
1,668,632
Total
Non-Agency
Mortgage-Backed
Securities
—
6
.4
%
(Cost:
$
3,166,700
)
..............................
2,934,492
Security
Par
(000)
Par
(000)
Value
U.S.
Government
Sponsored
Agency
Securities
Agency
Obligations
—
2.7%
Federal
Farm
Credit
Bank
Bonds
1.30
%
,
02/03/31
.................
USD
150
$
114,124
1.68
%
,
09/17/35
.................
220
147,968
2.17
%
,
10/29/29
.................
80
67,253
2.25
%
,
08/15/29
.................
150
127,372
Federal
Home
Loan
Bank
Bonds
0.60
%
,
12/30/26
.................
120
104,040
2.06
%
,
09/27/29
.................
150
125,591
2.18
%
,
11/06/29
.................
100
84,037
Federal
Home
Loan
Mortgage
Corp.
0.65
%
,
05/28/26
.................
120
106,718
4.20
%
,
08/28/25
.................
150
146,574
Federal
National
Mortgage
Association
0.74
%
,
08/25/27
.................
120
101,732
0.81
%
,
09/25/28
.................
120
97,499
1,222,908
Collateralized
Mortgage
Obligations
—
0.2%
Federal
National
Mortgage
Association
,
Series
2020-79
,
1.50
%
,
11/25/50
...........
52
43,795
Government
National
Mortgage
Association
,
Series
2020-127
,
Class
LP
,
1.50
%
,
06/20/50
83
62,809
106,604
Mortgage-Backed
Securities
—
8.3%
Government
National
Mortgage
Association
2.50
%
,
10/20/51
.................
197
160,115
3.00
%
,
10/20/51
.................
961
816,727
Uniform
Mortgage-Backed
Securities
2.50
%
,
11/01/51
.................
182
146,606
3.00
%
,
11/01/51
.................
249
210,422
3.50
%
,
11/01/51
.................
922
816,407
4.00
%
,
10/25/53
(e)
................
890
792,309
4.50
%
,
10/25/53
(e)
................
440
403,975
5.00
%
,
10/25/53
(e)
................
450
424,547
3,771,108
Total
U.S.
Government
Sponsored
Agency
Securities
—
11
.2
%
(Cost:
$
5,673,469
)
..............................
5,100,620
U.S.
Treasury
Obligations
U.S.
Treasury
Notes
2.88
%
,
06/15/25
.................
680
654,659
3.50
%
,
09/15/25
.................
1,835
1,781,240
3.88
%
,
01/15/26
.................
1,500
1,464,727
4.00
%
,
02/15/26
.................
530
518,800
4.63
%
,
03/15/26
-
09/15/26
..........
2,005
1,993,293
3.75
%
,
04/15/26
.................
1,560
1,517,344
3.63
%
,
05/15/26
.................
555
537,981
4.50
%
,
07/15/26
.................
900
891,703
4.38
%
,
08/15/26
.................
560
553,044
Total
U.S.
Treasury
Obligations
—
21
.8
%
(Cost:
$
10,083,633
)
..............................
9,912,791
Total
Long-Term
Investments
—
99.6%
(Cost:
$
47,641,919
)
..............................
45,375,610
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
33
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
September
30,
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
—
2.7%
(f)
AT&T,
Inc.,
5.93%
,
02/21/24
...........
USD
250
$
244,252
Harley-Davidson
Financial
Services,
Inc.,
6.14%
,
11/14/23
(b)
................
250
248,168
HSBC
USA,
Inc.,
6.55%
,
06/24/24
.......
250
238,777
NatWest
Markets
plc,
5.74%
,
02/26/24
....
250
244,107
Societe
Generale
SA,
5.70%
,
03/06/24
....
250
243,749
Total
Commercial
Paper
—
2
.7
%
(Cost:
$
1,219,729
)
..............................
1,219,053
Security
Shares
Shares
Value
Money
Market
Funds
—
2.0%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
,
5.23
%
(g)
(h)
.................
933,595
$
933,595
Total
Money
Market
Funds
—
2
.0
%
(Cost:
$
933,595
)
................................
933,595
Total
Short-Term
Securities
—
4.7%
(Cost:
$
2,153,324
)
..............................
2,152,648
Total
Options
Purchased
—
0
.0
%
(
Cost:
$
9,806
)
.................................
3,375
Total
Investments
Before
Options
Written
—
104
.3
%
(Cost:
$
49,805,049
)
..............................
47,531,633
Total
Options
Written
—
(0.0)
%
(Premium
Received
—
$
(
5,540
)
)
.....................
(
1,687
)
Total
Investments
Net
of
Options
Written
—
104
.3
%
(Cost:
$
49,799,509
)
..............................
47,529,946
Liabilities
in
Excess
of
Other
Assets
—
(
4.3
)
%
............
(
1,970,272
)
Net
Assets
—
100.0%
..............................
$
45,559,674
(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)
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.
(e)
Represents
or
includes
a
TBA
transaction.
(f)
Rates
are
discount
rates
or
a
range
of
discount
rates
as
of
period
end.
(g)
Affiliate
of
the
Fund.
(h)
Annualized
7-day
yield
as
of
period
end.
Affiliated
Issuer
Value
at
09/30/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/23
Shares
Held
at
09/30/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
...
$
1,345,914
$
—
$
(
412,319
)
(a)
$
—
$
—
$
933,595
933,595
$
33,894
$
—
—
—
(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
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
34
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
U.S.
Treasury
10-Year
Note
...................................................
3
12/19/23
$
324
$
120
U.S.
Treasury
2-Year
Note
....................................................
87
12/29/23
17,634
(62,004)
(61,884)
Short
Contracts
Euro-Bobl
...............................................................
3
12/07/23
367
3,707
Euro-Bund
..............................................................
8
12/07/23
1,088
22,401
Euro-Schatz
.............................................................
5
12/07/23
555
1,545
U.S.
Treasury
10-Year
Ultra
Note
...............................................
17
12/19/23
1,896
43,293
U.S.
Treasury
Long
Bond
.....................................................
5
12/19/23
569
32,256
U.S.
Treasury
Ultra
Bond
.....................................................
2
12/19/23
238
16,467
Long
Gilt
................................................................
1
12/27/23
115
76
U.S.
Treasury
5-Year
Note
....................................................
45
12/29/23
4,740
32,707
152,452
$
90,568
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation
(Depreciation)
EUR
24,000
USD
25,459
Morgan
Stanley
&
Co.
International
plc
12/20/23
$
11
USD
2,527,920
EUR
2,361,000
Deutsche
Bank
AG
12/20/23
22,272
USD
512,145
EUR
477,000
JPMorgan
Chase
Bank
NA
12/20/23
5,921
USD
63,006
EUR
59,000
Morgan
Stanley
&
Co.
International
plc
12/20/23
393
USD
122,591
GBP
99,000
Barclays
Bank
plc
12/20/23
1,732
USD
55,857
GBP
45,000
Morgan
Stanley
&
Co.
International
plc
12/20/23
921
31,250
EUR
50,000
USD
53,534
Barclays
Bank
plc
12/20/23
(470)
GBP
45,000
USD
55,224
Morgan
Stanley
&
Co.
International
plc
12/20/23
(288)
(758)
$
30,492
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
3-mo.
SOFR
Interest
Futures
....................
30
11/10/23
USD
96.00
USD
7,500
$
3,375
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
3-mo.
SOFR
Interest
Futures
.....................
45
11/10/23
USD
96.50
USD
11,250
$
(1,687)
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
35
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
41.V1
.....................
5.00
%
Quarterly
12/20/28
USD
1,470
$
12,080
$
(9,849)
$
21,929
Markit
CDX
North
American
Investment
Grade
Index
Series
41.V1
................
1.00
Quarterly
12/20/28
USD
980
(12,010)
(14,096)
2,086
$
70
$
(23,945)
$
24,015
Centrally
Cleared
Credit
Defa
ul
t
Swaps
—
Sell
Protection
Reference
Obligation/Index
Financing
Rate
Received
by
the
Fund
Payment
Frequency
Termination
Date
Credit
Rating
(a)
Notional
Amount
(000)
(b)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Markit
CDX
North
American
High
Yield
Index
Series
39.V2
...........
5.00
%
Quarterly
12/20/27
B+
—
$
(2,145)
$
—
$
(2,145)
(a)
Using
the
rating
of
the
issuer
or
the
underlying
securities
of
the
index,
as
applicable,
provided
by
S&P
Global
Ratings.
(b)
The
maximum
potential
amount
the
Fund
may
pay
should
a
negative
credit
event
take
place
as
defined
under
the
terms
of
the
agreement.
Balances
Reported
in
the
Statements
of
Assets
and
Liabilities
for
Centrally
Cleared
Swaps
and
Options
Written
Description
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
Value
Centrally
Cleared
Swaps
(a)
............................................
$
—
$
(23,945)
$
24,015
$
(2,145)
$
—
Options
Written
...................................................
N/A
N/A
3,853
—
(1,687)
(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.
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
36
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
152,572
$
—
$
152,572
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
31,250
—
—
31,250
Options
purchased
Investments
at
value
—
unaffiliated
(b)
............
—
—
—
—
3,375
—
3,375
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
24,015
—
—
—
—
24,015
$
—
$
24,015
$
—
$
31,250
$
155,947
$
—
$
211,212
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
62,004
$
—
$
62,004
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
758
—
—
758
Options
written
Options
written
at
value
.....................
—
—
—
—
1,687
—
1,687
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
2,145
—
—
—
—
2,145
$
—
$
2,145
$
—
$
758
$
63,691
$
—
$
66,594
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
of
Assets
and
Liabilities,
only
current
day’s
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
(b)
Includes
options
purchased
at
value
as
reported
in
the
Schedule
of
Investments.
For
the
period
ended
September
30,
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
.......................
$
—
$
—
$
—
$
—
$
8,174
$
—
$
8,174
Forward
foreign
currency
exchange
contracts
....
—
—
—
(188,812)
—
—
(188,812)
Swaps
..............................
—
(157,940)
—
—
(4,150)
—
(162,090)
$
—
$
(157,940)
$
—
$
(188,812)
$
4,024
$
—
$
(342,728)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
contracts
.......................
$
—
$
—
$
—
$
—
$
25,657
$
—
$
25,657
Forward
foreign
currency
exchange
contracts
....
—
—
—
(51,508)
—
—
(51,508)
Options
purchased
(a)
.....................
—
—
—
—
(6,431)
—
(6,431)
Options
written
........................
—
—
—
—
3,853
—
3,853
Swaps
..............................
—
24,284
—
—
(14,519)
—
9,765
$
—
$
24,284
$
—
$
(51,508)
$
8,560
$
—
$
(18,664)
(a)
Options
purchased
are
included
in
net
change
in
unrealized
appreciation
(depreciation)
on
investments
—
unaffiliated.
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
37
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
..................................................................................
$
18,121,619
Average
notional
value
of
contracts
—
short
.................................................................................
$
9,385,411
Forward
foreign
currency
exchange
contracts
Average
amounts
purchased
—
in
USD
....................................................................................
$
3,262,887
Average
amounts
sold
—
in
USD
........................................................................................
$
539,242
Options
Average
value
of
option
contracts
purchased
................................................................................
$
844
Average
value
of
option
contracts
written
...................................................................................
$
422
Credit
default
swaps
Average
notional
value
—
buy
protection
...................................................................................
$
2,845,000
Interest
rate
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
512,500
Average
notional
value
—
receives
fixed
rate
................................................................................
$
512,500
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments
$
—
Futures
contracts
....................................................................................
$
10,130
$
33,100
Forward
foreign
currency
exchange
contracts
.................................................................
31,250
758
Options
(a)
.........................................................................................
3,375
1,687
Swaps
—
centrally
cleared
..............................................................................
43,187
—
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
87,942
$
35,545
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(56,692)
(34,787)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
31,250
$
758
(a)
Includes
options
purchased
at
value
which
is
included
in
Investments
at
value
–
unaffiliated
in
the
Statements
of
Assets
and
Liabilities
and
reported
in
the
Schedule
of
Investments.
The
following
tables
present
the
Fund's
derivative
assets
and
liabilities
by
counterparty
net
of
amounts
available
for
offset
under
an
MNA
and
net
of
the
related
collateral
received
and
pledged
by
the
Fund:
Counterparty
Derivative
Assets
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Received
Cash
Collateral
Received
Net
Amount
of
Derivative
Assets
(b)(c)
Barclays
Bank
plc
................................
$
1,732
$
(470)
$
—
$
—
$
1,262
Deutsche
Bank
AG
...............................
22,272
—
—
—
22,272
JPMorgan
Chase
Bank
NA
..........................
5,921
—
—
—
5,921
Morgan
Stanley
&
Co.
International
plc
..................
1,325
(288)
—
—
1,037
$
31,250
$
(758)
$
—
$
—
$
30,492
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
Barclays
Bank
plc
................................
$
470
$
(470)
$
—
$
—
$
—
Morgan
Stanley
&
Co.
International
plc
..................
288
(288)
—
—
—
$
758
$
(758)
$
—
$
—
$
—
(a)
The
amount
of
derivatives
available
for
offset
is
limited
to
the
amount
of
derivative
assets
and/or
liabilities
that
are
subject
to
an
MNA.
(b)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(c)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Low
Duration
Bond
Fund
38
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
...................................
$
—
$
8,927,312
$
—
$
8,927,312
Corporate
Bonds
........................................
—
17,704,925
—
17,704,925
Foreign
Agency
Obligations
.................................
—
795,470
—
795,470
Non-Agency
Mortgage-Backed
Securities
........................
—
2,934,492
—
2,934,492
U.S.
Government
Sponsored
Agency
Securities
....................
—
5,100,620
—
5,100,620
U.S.
Treasury
Obligations
...................................
—
9,912,791
—
9,912,791
Short-Term
Securities
Commercial
Paper
.......................................
—
1,219,053
—
1,219,053
Money
Market
Funds
......................................
933,595
—
—
933,595
Options
Purchased
Interest
rate
contracts
......................................
3,375
—
—
3,375
$
936,970
$
46,594,663
$
—
$
47,531,633
Derivative
Financial
Instruments
(a)
Assets
Credit
contracts
...........................................
$
—
$
24,015
$
—
$
24,015
Foreign
currency
exchange
contracts
............................
—
31,250
—
31,250
Interest
rate
contracts
.......................................
152,572
—
—
152,572
Liabilities
Credit
contracts
...........................................
—
(2,145)
—
(2,145)
Foreign
currency
exchange
contracts
............................
—
(758)
—
(758)
Interest
rate
contracts
.......................................
(63,691)
—
—
(63,691)
$
88,881
$
52,362
$
—
$
141,243
(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.
Schedule
of
Investments
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
39
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Pa
r
(
000)
Value
Asset-Backed
Securities
Cayman
Islands
—
7.9%
(a)(b)
AGL
Core
CLO
4
Ltd.,
Series
2020-4A,
Class
A1R,
(3-mo.
CME
Term
SOFR
+
1.33%),
6.66%,
04/20/33
.....
USD
250
$
248,622
Anchorage
Capital
CLO
8
Ltd.,
Series
2016-8A,
Class
BR2,
(3-mo.
CME
Term
SOFR
+
2.06%),
7.42%,
10/27/34
.................
250
248,376
Street
CLO
II
Ltd.,
Series
2021-
1A,
Class
A1A,
(3-mo.
CME
Term
SOFR
at
1.23%
Floor
+
1.49%),
6.82%,
07/20/34
............
250
247,788
CIFC
Funding
Ltd.,
Series
2020-3A,
Class
A1R,
(3-mo.
CME
Term
SOFR
+
1.39%),
6.72%,
10/20/34
.....
250
248,448
Gilbert
Park
CLO
Ltd.,
Series
2017-1A,
Class
A,
(3-mo.
CME
Term
SOFR
at
1.19%
Floor
+
1.45%),
6.76%,
10/15/30
.................
240
239,443
Madison
Park
Funding
XIX
Ltd.,
Series
2015-19A,
Class
A1R2,
(3-mo.
CME
Term
SOFR
at
0.92%
Floor
+
1.18%),
6.53%,
01/22/28
.......
668
665,514
Neuberger
Berman
Loan
Advisers
CLO
35
Ltd.,
Series
2019-35A,
Class
C,
(3-mo.
CME
Term
SOFR
+
2.86%),
8.18%,
01/19/33
............
250
250,718
Palmer
Square
CLO
Ltd.,
Series
2021-
3A,
Class
A1,
(3-mo.
CME
Term
SOFR
+
1.41%),
6.72%,
01/15/35
250
248,609
Pikes
Peak
CLO
8,
Series
2021-8A,
Class
B,
(3-mo.
CME
Term
SOFR
+
2.01%),
7.34%,
07/20/34
.......
250
249,025
TCW
CLO
AMR
Ltd.,
Series
2019-1A,
Class
ASNR,
(3-mo.
CME
Term
SOFR
at
1.22%
Floor
+
1.48%),
6.85%,
08/16/34
............
250
246,895
Trimaran
CAVU
Ltd.,
Series
2021-2A,
Class
D1,
(3-mo.
CME
Term
SOFR
+
3.51%),
8.86%,
10/25/34
.....
250
245,766
3,139,204
Ireland
—
0.3%
Prodigy
Finance
DAC,
Series
2021-1A,
A,
(1-mo.
CME
Term
SOFR
+
1.36%),
6.68%,
07/25/51
(a)
(b)
....
149
147,661
United
States
—
6.9%
Arbor
Realty
Commercial
Real
Estate
Notes
Ltd.,
Series
2021-FL1,
Class
A,
(1-mo.
CME
Term
SOFR
at
0.97%
Floor
+
1.08%),
6.42%,
12/15/35
(a)
(b)
...............
100
98,906
Diameter
Capital
CLO
1
Ltd.,
Series
2021-1A,
Class
A1A,
(3-mo.
CME
Term
SOFR
+
1.50%),
6.81%,
07/15/36
(a)
(b)
...............
250
248,369
GITSIT
Mortgage
Loan
Trust,
Series
2023-NPL1,
Class
A1,
8.35%,
05/25/53
(a)
(c)
...............
63
63,584
Home
Partners
of
America
Trust,
Series
2021-2,
Class
F,
3.80%,
12/17/26
(a)
481
410,164
Legacy
Mortgage
Asset
Trust,
Series
2019-SL2,
Class
M,
4.25%,
02/25/59
(a)
(b)
...............
211
167,536
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Lendmark
Funding
Trust,
Series
2022-
1A,
Class
A,
5.12%,
07/20/32
(a)
..
USD
100
$
97,455
Long
Beach
Mortgage
Loan
Trust,
Series
2006-2,
Class
1A,
(1-mo.
CME
Term
SOFR
at
0.18%
Floor
+
0.47%),
5.79%,
03/25/46
(b)
.....
131
103,407
Mariner
Finance
Issuance
Trust,
Series
2019-AA,
Class
B,
3.51%,
07/20/32
(a)
................
100
99,023
MF1
LLC,
Series
2023-FL12,
Class
A,
(1-mo.
CME
Term
SOFR
+
2.07%),
0.00%,
10/19/38
(a)
(b)
..........
100
99,500
Mosaic
Solar
Loans
LLC,
Series
2017-
2A,
Class
C,
2.00%,
06/22/43
(a)
..
31
30,606
Navient
Private
Education
Loan
Trust,
Series
2015-AA,
Class
A3,
(1-mo.
CME
Term
SOFR
at
1.70%
Floor
+
1.81%),
7.15%,
11/15/30
(a)
(b)
....
89
88,893
PRET
LLC,
Series
2021-NPL6,
Class
A1,
2.49%,
07/25/51
(a)
(c)
.......
237
224,851
Progress
Residential
Trust,
Series
2021-SFR10,
Class
F,
4.61%,
12/17/40
(a)
................
498
414,093
Ready
Capital
Mortgage
Financing
LLC,
Series
2023-FL11,
Class
A,
(1-mo.
CME
Term
SOFR
+
2.37%),
7.69%,
10/25/39
(a)
(b)
..........
49
48,546
Regional
Management
Issuance
Trust
(a)
Series
2020-1,
Class
A,
2.34%,
10/15/30
...............
100
97,436
Series
2021-1,
Class
A,
1.68%,
03/17/31
...............
100
94,103
Tricon
Residential
Trust,
Series
2021-
SFR1,
Class
F,
3.69%,
07/17/38
(a)
400
347,994
2,734,466
Total
Asset-Backed
Securities
—
15.1%
(Cost:
$
6,242,172
)
..............................
6,021,331
Corporate
Bonds
Belgium
—
0.2%
KBC
Group
NV,
(3-mo.
EURIBOR
+
0.72%),
0.38%
,
06/16/27
(b)
(d)
....
EUR
100
95,732
China
—
0.2%
NXP
BV,
5.55%
,
12/01/28
........
USD
68
66,386
France
—
1.2%
(d)
Banque
Federative
du
Credit
Mutuel
SA
0.10%
,
10/08/27
............
EUR
100
90,456
4.13%
,
09/18/30
............
100
104,429
BNP
Paribas
SA,
(3-mo.
EURIBOR
+
0.80%),
0.38%
,
10/14/27
(b)
.....
100
93,539
Engie
SA,
1.75%
,
03/27/28
.......
100
96,259
Societe
Generale
SA,
(3-mo.
EURIBOR
+
1.28%),
0.88%
,
09/22/28
(b)
....
100
91,238
475,921
Germany
—
1.1%
Commerzbank
AG,
(3-mo.
EURIBOR
+
1.95%),
5.25%
,
03/25/29
(b)
(d)
....
100
105,495
Deutsche
Bank
AG
5.37%
,
09/09/27
............
USD
150
146,479
(3-mo.
EURIBOR
+
1.38%),
1.88%
,
02/23/28
(b)
(d)
.............
EUR
100
94,397
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
40
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Germany
(continued)
E.ON
SE,
1.00%
,
10/07/25
(d)
......
EUR
100
$
100,092
446,463
Italy
—
0.3%
Iren
SpA,
1.95%
,
09/19/25
(d)
......
100
101,009
Netherlands
—
0.3%
ING
Groep
NV,
(3-mo.
EURIBOR
+
1.10%),
2.13%
,
05/23/26
(b)
(d)
....
100
101,889
Spain
—
0.2%
CaixaBank
SA,
(3-mo.
EURIBOR
+
0.85%),
0.38%
,
11/18/26
(b)
(d)
....
100
96,427
Switzerland
—
1.9%
Credit
Suisse
AG
4.75%
,
08/09/24
............
USD
250
246,447
0.45%
,
05/19/25
(d)
...........
EUR
100
99,063
5.00%
,
07/09/27
............
USD
250
240,144
UBS
AG,
0.01%
,
06/29/26
(d)
.......
EUR
200
188,622
774,276
United
Kingdom
—
1.1%
Barclays
plc,
(1-Year
EUR
Swap
Annual
+
1.75%),
4.92%
,
08/08/30
(b)
(d)
...
100
104,151
HSBC
Holdings
plc,
(Sterling
Overnight
Index
Average
+
2.12%),
6.80%
,
09/14/31
(b)
................
GBP
100
123,267
National
Grid
plc,
0.25%
,
09/01/28
(d)
.
EUR
100
86,918
RELX
Capital,
Inc.,
4.00%
,
03/18/29
.
USD
24
22,371
SSE
plc,
0.88%
,
09/06/25
(d)
.......
EUR
100
99,621
436,328
United
States
—
22.8%
AbbVie,
Inc.
4.55%
,
03/15/35
............
USD
73
66,400
4.50%
,
05/14/35
............
35
31,624
4.70%
,
05/14/45
............
26
22,149
4.88%
,
11/14/48
............
23
20,099
AEP
Texas,
Inc.
3.95%
,
06/01/28
............
80
74,102
4.70%
,
05/15/32
............
41
37,518
5.25%
,
05/15/52
............
52
44,547
Agilent
Technologies,
Inc.,
3.05%
,
09/22/26
.................
30
27,922
American
Tower
Corp.
5.00%
,
02/15/24
............
12
11,951
0.45%
,
01/15/27
............
EUR
100
92,879
3.80%
,
08/15/29
............
USD
202
179,681
2.70%
,
04/15/31
............
44
34,895
5.65%
,
03/15/33
............
47
45,179
5.55%
,
07/15/33
............
31
29,539
American
Transmission
Systems,
Inc.,
2.65%
,
01/15/32
(a)
...........
64
50,593
Amgen,
Inc.
4.05%
,
08/18/29
............
182
168,934
4.66%
,
06/15/51
............
4
3,236
4.40%
,
02/22/62
............
30
22,226
5.75%
,
03/02/63
............
70
64,574
Aon
Corp.,
3.75%
,
05/02/29
.......
25
22,665
AT&T,
Inc.
4.35%
,
03/01/29
............
27
25,127
2.75%
,
06/01/31
............
33
26,400
5.40%
,
02/15/34
............
41
38,372
5.25%
,
03/01/37
............
42
38,140
4.75%
,
05/15/46
............
38
30,018
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
4.50%
,
03/09/48
............
USD
11
$
8,318
3.50%
,
09/15/53
............
20
12,357
3.65%
,
09/15/59
............
80
48,676
Atlantic
City
Electric
Co.,
4.00%
,
10/15/28
.................
8
7,473
Atmos
Energy
Corp.,
2.85%
,
02/15/52
10
5,986
Baltimore
Gas
&
Electric
Co.
3.50%
,
08/15/46
............
74
50,441
5.40%
,
06/01/53
............
10
9,190
Bank
of
America
Corp.
(b)
(1-day
SOFR
+
1.57%),
5.82%
,
09/15/29
...............
297
293,355
(3-mo.
CME
Term
SOFR
+
1.25%),
2.50%
,
02/13/31
..........
38
30,455
Booz
Allen
Hamilton,
Inc.,
5.95%
,
08/04/33
.................
37
36,097
Broadcom,
Inc.
(a)
3.42%
,
04/15/33
............
67
53,590
3.14%
,
11/15/35
............
39
28,434
4.93%
,
05/15/37
............
46
39,649
Burlington
Northern
Santa
Fe
LLC,
3.30%
,
09/15/51
............
33
22,123
Cameron
LNG
LLC,
3.30%
,
01/15/35
(a)
187
148,855
Capital
One
Financial
Corp.,
(1-day
SOFR
+
2.60%),
5.82%
,
02/01/34
(b)
31
27,937
CenterPoint
Energy
Houston
Electric
LLC
Series
AE,
2.35%
,
04/01/31
....
10
8,054
Series
AF,
3.35%
,
04/01/51
....
15
9,989
Series
AJ,
4.85%
,
10/01/52
....
25
21,722
Charles
Schwab
Corp.
(The),
(1-day
SOFR
+
2.50%),
5.85%
,
05/19/34
(b)
42
39,937
Charter
Communications
Operating
LLC
5.13%
,
07/01/49
............
8
5,832
4.80%
,
03/01/50
............
108
75,521
3.90%
,
06/01/52
............
35
20,926
4.40%
,
12/01/61
............
15
9,241
3.95%
,
06/30/62
............
9
5,105
Citigroup,
Inc.,
(1-day
SOFR
+
2.09%),
4.91%
,
05/24/33
(b)
...........
87
79,162
Comcast
Corp.
1.50%
,
02/15/31
............
31
23,419
3.75%
,
04/01/40
............
13
10,070
3.40%
,
07/15/46
............
31
21,117
Commonwealth
Edison
Co.
4.00%
,
03/01/48
............
18
13,606
Series
133,
3.85%
,
03/15/52
....
24
17,258
5.30%
,
02/01/53
............
42
38,522
Connecticut
Light
&
Power
Co.
(The),
4.90%
,
07/01/33
............
52
49,378
Cox
Communications,
Inc.,
3.15%
,
08/15/24
(a)
................
14
13,660
Crown
Castle,
Inc.
2.25%
,
01/15/31
............
161
124,947
2.10%
,
04/01/31
............
100
76,286
2.50%
,
07/15/31
............
52
40,554
5.10%
,
05/01/33
............
38
35,132
CSX
Corp.,
4.25%
,
11/01/66
......
10
7,456
Dell
International
LLC,
6.02%
,
06/15/26
119
119,464
Edison
International
5.75%
,
06/15/27
............
34
33,685
5.25%
,
11/15/28
............
124
119,306
6.95%
,
11/15/29
............
59
60,847
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
41
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Elevance
Health,
Inc.,
6.10%
,
10/15/52
USD
23
$
23,143
Equinix,
Inc.,
2.15%
,
07/15/30
.....
27
21,207
Eversource
Energy,
5.45%
,
03/01/28
38
37,560
Exelon
Corp.,
4.45%
,
04/15/46
.....
32
24,957
Extra
Space
Storage
LP,
5.50%
,
07/01/30
.................
10
9,670
FactSet
Research
Systems,
Inc.,
3.45%
,
03/01/32
............
75
62,153
FirstEnergy
Transmission
LLC,
4.55%
,
04/01/49
(a)
................
86
67,327
General
Motors
Financial
Co.,
Inc.
5.10%
,
01/17/24
............
199
198,366
5.80%
,
06/23/28
............
25
24,423
Gilead
Sciences,
Inc.
4.60%
,
09/01/35
............
21
19,217
2.60%
,
10/01/40
............
40
26,403
4.75%
,
03/01/46
............
26
22,263
Global
Payments,
Inc.,
5.30%
,
08/15/29
.................
155
147,815
GLP
Capital
LP
5.75%
,
06/01/28
............
33
31,641
4.00%
,
01/15/30
............
34
28,834
4.00%
,
01/15/31
............
27
22,478
3.25%
,
01/15/32
............
61
47,341
Goldman
Sachs
Group,
Inc.
(The)
(b)
(1-day
SOFR
+
1.85%),
3.62%
,
03/15/28
...............
138
127,329
(3-mo.
CME
Term
SOFR
+
1.77%),
3.69%
,
06/05/28
..........
30
27,648
(3-mo.
CME
Term
SOFR
+
1.42%),
3.81%
,
04/23/29
..........
103
93,528
(1-day
SOFR
+
1.26%),
2.65%
,
10/21/32
...............
108
83,361
HCA,
Inc.
5.38%
,
09/01/26
............
65
63,791
5.88%
,
02/01/29
............
21
20,659
3.50%
,
09/01/30
............
20
16,921
3.63%
,
03/15/32
............
50
41,444
5.50%
,
06/15/47
............
21
17,925
Hewlett
Packard
Enterprise
Co.,
5.90%
,
10/01/24
.................
132
131,893
Intuit,
Inc.,
5.50%
,
09/15/53
.......
5
4,797
JPMorgan
Chase
&
Co.
(b)
(1-day
SOFR
+
1.02%),
2.07%
,
06/01/29
...............
33
27,806
(3-mo.
CME
Term
SOFR
+
1.52%),
4.20%
,
07/23/29
..........
29
26,876
(1-day
SOFR
+
1.75%),
4.57%
,
06/14/30
...............
27
25,186
(3-mo.
CME
Term
SOFR
+
1.25%),
2.58%
,
04/22/32
..........
10
7,888
(1-day
SOFR
+
1.85%),
5.35%
,
06/01/34
...............
35
33,190
KLA
Corp.
3.30%
,
03/01/50
............
33
21,930
5.25%
,
07/15/62
............
25
22,459
L3Harris
Technologies,
Inc.
2.90%
,
12/15/29
............
72
61,309
1.80%
,
01/15/31
............
36
27,497
Lowe's
Cos.,
Inc.
2.63%
,
04/01/31
............
20
16,178
5.50%
,
10/15/35
............
8
7,726
2.80%
,
09/15/41
............
53
34,233
Marsh
&
McLennan
Cos.,
Inc.,
5.45%
,
03/15/53
.................
25
23,336
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Moody's
Corp.
3.25%
,
01/15/28
............
USD
32
$
29,340
3.75%
,
02/25/52
............
5
3,538
Morgan
Stanley
(b)
(1-day
SOFR
+
0.88%),
1.59%
,
05/04/27
...............
99
88,118
(1-day
SOFR
+
1.63%),
5.45%
,
07/20/29
...............
335
326,447
(1-day
SOFR
+
1.14%),
2.70%
,
01/22/31
...............
317
259,183
Motorola
Solutions,
Inc.
5.60%
,
06/01/32
............
88
84,186
5.50%
,
09/01/44
............
23
20,162
MSCI,
Inc.
(a)
4.00%
,
11/15/29
............
92
80,804
3.63%
,
11/01/31
............
28
22,906
Nasdaq,
Inc.
5.55%
,
02/15/34
............
20
19,089
6.10%
,
06/28/63
............
20
18,600
Newmont
Corp.,
2.80%
,
10/01/29
...
68
57,586
NextEra
Energy
Capital
Holdings,
Inc.,
5.75%
,
09/01/25
............
40
39,888
NNN
REIT,
Inc.,
3.00%
,
04/15/52
...
34
19,179
Norfolk
Southern
Corp.
3.00%
,
03/15/32
............
22
18,126
3.94%
,
11/01/47
............
27
20,084
3.05%
,
05/15/50
............
16
9,925
4.55%
,
06/01/53
............
9
7,267
Northern
States
Power
Co.
2.60%
,
06/01/51
............
37
20,921
4.50%
,
06/01/52
............
50
40,620
Ohio
Power
Co.
Series
P,
2.60%
,
04/01/30
.....
5
4,140
Series
Q,
1.63%
,
01/15/31
.....
58
44,060
5.00%
,
06/01/33
............
35
32,840
Series
R,
2.90%
,
10/01/51
.....
61
36,157
Omnicom
Group,
Inc.
3.60%
,
04/15/26
............
89
84,536
2.60%
,
08/01/31
............
5
3,962
Oracle
Corp.
3.60%
,
04/01/40
............
129
93,208
4.00%
,
07/15/46
............
51
35,988
4.00%
,
11/15/47
............
4
2,811
3.60%
,
04/01/50
............
51
32,990
5.55%
,
02/06/53
............
9
7,885
Otis
Worldwide
Corp.,
5.25%
,
08/16/28
25
24,574
Owens
Corning,
3.95%
,
08/15/29
...
26
23,620
Pacific
Gas
&
Electric
Co.
4.95%
,
07/01/50
............
45
33,541
3.50%
,
08/01/50
............
110
65,484
PECO
Energy
Co.
3.90%
,
03/01/48
............
34
25,443
2.85%
,
09/15/51
............
29
17,164
4.38%
,
08/15/52
............
10
7,996
Penske
Truck
Leasing
Co.
LP,
6.05%
,
08/01/28
(a)
................
72
71,097
Pfizer
Investment
Enterprises
Pte.
Ltd.
4.75%
,
05/19/33
............
72
68,060
5.30%
,
05/19/53
............
90
83,624
Piedmont
Natural
Gas
Co.,
Inc.,
2.50%
,
03/15/31
.................
11
8,669
Prologis
LP,
3.88%
,
09/15/28
......
7
6,484
Public
Service
Co.
of
New
Hampshire,
5.15%
,
01/15/53
............
24
21,622
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
42
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Public
Service
Electric
&
Gas
Co.
3.70%
,
05/01/28
............
USD
28
$
26,209
3.60%
,
12/01/47
............
6
4,293
2.05%
,
08/01/50
............
48
24,512
Realty
Income
Corp.,
3.25%
,
01/15/31
6
5,042
Republic
Services,
Inc.,
3.95%
,
05/15/28
.................
24
22,527
Ryder
System,
Inc.
4.30%
,
06/15/27
............
26
24,758
5.25%
,
06/01/28
............
5
4,866
S&P
Global,
Inc.,
5.25%
,
09/15/33
(a)
.
10
9,747
San
Diego
Gas
&
Electric
Co.,
5.35%
,
04/01/53
.................
59
53,582
Southern
California
Edison
Co.
5.65%
,
10/01/28
............
10
9,982
Series
A,
4.20%
,
03/01/29
.....
42
39,094
2.25%
,
06/01/30
............
58
46,566
5.95%
,
11/01/32
............
67
66,821
5.88%
,
12/01/53
............
15
14,097
Sprint
LLC
7.13%
,
06/15/24
............
96
96,584
7.63%
,
02/15/25
............
513
520,517
Thermo
Fisher
Scientific,
Inc.
4.95%
,
11/21/32
............
52
49,983
5.09%
,
08/10/33
............
27
26,108
T-Mobile
USA,
Inc.,
4.75%
,
02/01/28
.
135
129,400
Transcontinental
Gas
Pipe
Line
Co.
LLC
4.60%
,
03/15/48
............
42
33,269
3.95%
,
05/15/50
............
38
27,012
Union
Electric
Co.,
2.63%
,
03/15/51
.
15
8,512
Union
Pacific
Corp.
3.55%
,
05/20/61
............
40
26,119
2.97%
,
09/16/62
............
29
16,470
UnitedHealth
Group,
Inc.
4.25%
,
06/15/48
............
7
5,589
2.90%
,
05/15/50
............
28
17,192
6.05%
,
02/15/63
............
22
22,259
5.20%
,
04/15/63
............
7
6,249
Verizon
Communications,
Inc.
2.55%
,
03/21/31
............
38
30,257
2.36%
,
03/15/32
............
172
131,229
5.05%
,
05/09/33
............
22
20,552
4.40%
,
11/01/34
............
30
26,013
5.25%
,
03/16/37
............
31
28,922
2.65%
,
11/20/40
............
36
22,789
VICI
Properties
LP
4.25%
,
12/01/26
(a)
...........
207
192,872
3.75%
,
02/15/27
(a)
...........
40
36,297
4.75%
,
02/15/28
............
56
52,375
4.63%
,
12/01/29
(a)
...........
116
102,898
4.95%
,
02/15/30
............
38
34,769
Wells
Fargo
&
Co.
(b)
(1-day
SOFR
+
2.02%),
5.39%
,
04/24/34
...............
77
71,988
(1-day
SOFR
+
1.99%),
5.56%
,
07/25/34
...............
70
66,282
9,068,136
Total
Corporate
Bonds
—
29.3%
(Cost:
$
12,700,116
)
..............................
11,662,567
Security
Par
(000)
Pa
r
(
000)
Value
Foreign
Agency
Obligations
Italy
—
0.2%
ACEA
SpA,
0.00%
,
09/28/25
(d)
.....
EUR
100
$
97,336
Total
Foreign
Agency
Obligations
—
0.2%
(Cost:
$
101,680
)
................................
97,336
Foreign
Government
Obligations
Mexico
—
0.4%
United
Mexican
States,
2.66%
,
05/24/31
.................
USD
200
157,878
Panama
—
0.5%
Republic
of
Panama,
3.88%
,
03/17/28
200
183,634
Peru
—
0.1%
Republic
of
Peru,
3.55%
,
03/10/51
..
35
22,984
Uruguay
—
0.0%
Oriental
Republic
of
Uruguay,
5.10%
,
06/18/50
.................
25
22,151
Total
Foreign
Government
Obligations
—
1.0%
(Cost:
$
473,416
)
................................
386,647
Municipal
Bonds
California
-
0
.4
%
Bay
Area
Toll
Authority
,
Series
2010S-1
,
RB
,
7.04
%
,
04/01/50
.........
20
23,008
Los
Angeles
Community
College
District
,
Series
2010E
,
GO
,
6.60
%
,
08/01/42
............
5
5,466
Los
Angeles
Unified
School
District
,
Series
2010RY
,
GO
,
6.76
%
,
07/01/34
............
20
21,623
State
of
California
,
Series
2018
,
GO
,
4.60
%
,
04/01/38
............
70
63,179
University
of
California
,
Series
2012AD
,
RB
,
4.86
%
,
05/15/12
.........
15
12,331
125,607
Illinois
-
0
.1
%
State
of
Illinois
,
Series
2003
,
GO
,
5.10
%
,
06/01/33
............
40
37,962
New
Jersey
-
0
.0
%
New
Jersey
Turnpike
Authority
,
Series
2009F
,
RB
,
7.41
%
,
01/01/40
....
8
9,329
New
York
-
0
.1
%
Metropolitan
Transportation
Authority
Series
2009A-1
,
RB
,
5.87
%
,
11/15/39
..........
10
9,528
Series
2010A
,
RB
,
6.67
%
,
11/15/39
10
10,238
New
York
City
Municipal
Water
Finance
Authority
,
Series
2010EE
,
RB
,
6.01
%
,
06/15/42
............
5
5,140
Port
Authority
of
New
York
&
New
Jersey
,
Series
2011-168
,
RB
,
4.93
%
,
10/01/51
............
15
13,547
38,453
Ohio
-
0
.0
%
American
Municipal
Power,
Inc.
,
Series
2010A
,
RB
,
8.08
%
,
02/15/50
....
10
12,437
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
43
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Texas
-
0
.0
%
City
of
San
Antonio
Electric
&
Gas
Systems
,
Series
2010A
,
RB
,
5.81
%
,
02/01/41
............
USD
10
$
10,027
State
of
Texas
,
Series
2009A
,
GO
,
5.52
%
,
04/01/39
............
15
14,930
24,957
Total
Municipal
Bonds
—
0.6%
(Cost:
$
326,349
)
................................
248,745
Non-Agency
Mortgage-Backed
Securities
Collateralized
Mortgage
Obligations
—
1
.2
%
United
States
—
1.2%
Alternative
Loan
Trust
(b)
Series
2006-OA6,
Class
1A1A,
(1-
mo.
CME
Term
SOFR
+
0.53%),
5.85%,
07/25/46
..........
17
13,470
Series
2006-OC10,
Class
2A3,
(1-
mo.
CME
Term
SOFR
+
0.57%),
5.89%,
11/25/36
..........
189
160,729
Impac
Secured
Assets
Trust,
Series
2006-2,
Class
1A2B,
(1-mo.
CME
Term
SOFR
at
0.17%
Floor
and
11.50%
Cap
+
0.45%),
5.77%,
08/25/36
(b)
................
105
102,021
RFMSI
Trust,
Series
2007-SA4,
Class
3A1,
5.26%,
10/25/37
(b)
........
139
85,730
TVC
Mortgage
Trust,
Series
2023-
RTL1,
Class
A1,
8.25%,
11/25/27
(a)
100
99,664
461,614
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
4.25%
Floor
+
4.22%),
9.55%,
12/15/34
(a)
(b)
...............
125
116,189
United
States
—
4.0%
1211
Avenue
of
the
Americas
Trust,
Series
2015-1211,
Class
A1A2,
3.90%,
08/10/35
(a)
...........
250
233,996
BANK,
Series
2022-BNK41,
Class
A4,
3.92%,
04/15/65
(b)
...........
80
68,684
Beast
Mortgage
Trust,
Series
2021-
SSCP,
Class
A,
(1-mo.
CME
Term
SOFR
+
0.86%),
6.20%,
04/15/36
(a)
(b)
...............
30
29,284
Benchmark
Mortgage
Trust,
Series
2021-B29,
Class
A5,
2.39%,
09/15/54
.................
30
23,293
BX
Commercial
Mortgage
Trust
(a)(b)
Series
2020-VKNG,
Class
A,
(1-mo.
CME
Term
SOFR
+
1.04%),
6.38%,
10/15/37
..........
113
112,128
Series
2021-SOAR,
Class
A,
(1-mo.
CME
Term
SOFR
at
0.67%
Floor
+
0.78%),
6.12%,
06/15/38
...
56
54,698
Series
2022-LP2,
Class
A,
(1-mo.
CME
Term
SOFR
+
1.01%),
6.35%,
02/15/39
..........
49
47,430
BX
Trust,
Series
2022-IND,
Class
A,
(1-mo.
CME
Term
SOFR
+
1.49%),
6.82%,
04/15/37
(a)
(b)
..........
48
47,760
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Commercial
Mortgage
Trust,
Series
2013-300P,
Class
D,
4.54%,
08/10/30
(a)
(b)
...............
USD
25
$
19,117
Credit
Suisse
Mortgage
Capital
Certificates,
Series
2019-ICE4,
Class
A,
(1-mo.
CME
Term
SOFR
at
0.98%
Floor
+
1.03%),
6.36%,
05/15/36
(a)
(b)
...............
60
59,786
Grace
Trust,
Series
2020-GRCE,
Class
D,
2.77%,
12/10/40
(a)
(b)
........
250
171,547
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
(a)(b)
Series
2021-MHC,
Class
D,
(1-mo.
CME
Term
SOFR
at
1.70%
Floor
+
1.81%),
7.15%,
04/15/38
...
250
245,721
Series
2022-OPO,
Class
D,
3.56%,
01/05/39
...............
80
52,142
SUMIT
Mortgage
Trust,
Series
2022-
BVUE,
Class
D,
2.99%,
02/12/41
(a)
(b)
40
27,046
Velocity
Commercial
Capital
Loan
Trust,
Series
2021-4,
Class
M4,
4.48%,
12/26/51
(a)
(b)
..........
465
332,413
Wells
Fargo
Commercial
Mortgage
Trust,
Series
2021-C60,
Class
A4,
2.34%,
08/15/54
............
80
61,640
1,586,685
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0
.0
%
United
States
—
0.0%
BMO
Mortgage
Trust,
Series
2023-C5,
Class
XA,
0.95%,
06/15/56
(b)
....
200
10,125
Total
Non-Agency
Mortgage-Backed
Securities
—
5.5%
(Cost:
$
2,441,886
)
..............................
2,174,613
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
,
3.79
%
,
04/25/28
(a)
(b)
..........
50
41,088
Interest
Only
Collateralized
Mortgage
Obligations
—
0.4%
Federal
Home
Loan
Mortgage
Corp.
Series
389
,
Class
C45
,
3.00
%
,
10/15/52
........
256
42,481
Series
5161
,
Class
LI
,
3.00
%
,
11/25/51
........
74
10,030
Federal
National
Mortgage
Association
Series
2021-3
,
Class
MI
,
3.50
%
,
02/25/51
........
52
9,399
Series
2021-31
,
Class
IB
,
4.00
%
,
06/25/51
........
59
11,734
Series
428
,
Class
C16
,
3.00
%
,
03/25/50
........
95
16,391
Government
National
Mortgage
Association
Series
2021-58
,
Class
IY
,
3.00
%
,
02/20/51
........
72
10,966
Series
2021-97
,
Class
LI
,
3.00
%
,
08/20/50
........
64
9,810
Series
2022-78
,
Class
D
,
3.00
%
,
08/20/51
........
156
23,659
134,470
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
44
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Mortgage-Backed
Securities
—
53.2%
Federal
National
Mortgage
Association
,
3.00
%
,
12/01/50
............
USD
652
$
546,202
Government
National
Mortgage
Association
2.00
%
,
08/20/50
-
11/20/50
...
107
85,373
2.50
%
,
10/20/51
-
12/20/51
...
91
74,107
3.00
%
,
03/20/52
..........
279
237,342
3.50
%
,
03/20/52
..........
60
52,812
4.00
%
,
03/20/52
..........
16
14,487
2.00
%
,
10/15/53
(e)
.........
479
378,379
2.50
%
,
10/15/53
(e)
.........
512
418,419
3.00
%
,
10/15/53
(e)
.........
169
142,960
3.50
%
,
10/15/53
(e)
.........
271
237,095
4.00
%
,
10/15/53
(e)
.........
1,989
1,791,437
4.50
%
,
10/15/53
(e)
.........
161
148,730
5.00
%
,
10/15/53
(e)
.........
156
147,822
5.50
%
,
10/15/53
(e)
.........
1,740
1,688,914
6.00
%
,
10/15/53
-
11/15/53
(e)
..
68
67,356
6.50
%
,
11/15/53
(e)
.........
30
30,150
Uniform
Mortgage-Backed
Securities
1.50
%
,
10/25/38
-
10/25/53
(e)
..
683
529,371
2.00
%
,
10/25/38
(e)
.........
513
439,847
2.50
%
,
10/25/38
-
10/25/53
(e)
..
287
247,102
3.00
%
,
10/25/38
-
10/25/53
(e)
..
2,386
1,984,220
3.50
%
,
10/25/38
-
10/25/53
(e)
..
265
231,499
4.50
%
,
10/25/38
-
10/25/53
(e)
..
483
444,663
4.00
%
,
01/01/47
-
06/01/52
...
1,828
1,646,039
4.50
%
,
06/01/50
..........
218
203,310
2.00
%
,
10/01/51
-
11/01/51
...
2,704
2,063,120
2.50
%
,
11/01/51
-
12/01/51
...
2,938
2,343,754
3.00
%
,
11/01/51
..........
249
210,422
3.50
%
,
11/01/51
..........
922
816,407
5.50
%
,
09/01/53
..........
296
286,163
6.00
%
,
09/01/53
..........
296
292,216
5.00
%
,
10/25/53
(e)
.........
1,090
1,028,619
5.50
%
,
10/25/53
(e)
.........
1,573
1,519,980
6.00
%
,
10/25/53
(e)
.........
731
721,406
6.50
%
,
10/25/53
(e)
.........
64
64,290
7.00
%
,
10/25/53
(e)
.........
45
45,933
21,179,946
Total
U.S.
Government
Sponsored
Agency
Securities
—
53
.7
%
(Cost:
$
23,159,074
)
..............................
21,355,504
U.S.
Treasury
Obligations
U.S.
Treasury
Bonds
4.50
%
,
08/15/39
............
179
173,752
1.13
%
,
05/15/40
-
08/15/40
.....
354
202,208
4.38
%
,
05/15/40
-
05/15/41
.....
120
113,377
1.38
%
,
11/15/40
............
177
104,755
4.75
%
,
02/15/41
............
31
30,165
1.75
%
,
08/15/41
............
177
110,224
4.00
%
,
11/15/42
-
11/15/52
.....
191
169,403
3.88
%
,
02/15/43
............
229
199,302
3.63
%
,
08/15/43
-
05/15/53
.....
297
246,141
3.75
%
,
11/15/43
............
100
84,883
2.75
%
,
11/15/47
............
256
178,520
3.00
%
,
02/15/48
-
08/15/52
.....
714
521,736
2.25
%
,
08/15/49
............
61
37,973
2.38
%
,
05/15/51
............
138
87,649
2.00
%
,
08/15/51
............
54
30,871
1.88
%
,
11/15/51
............
103
57,299
2.88
%
,
05/15/52
............
110
77,993
4.13
%
,
08/15/53
............
272
246,925
Security
Par
(000)
Par
(000)
Value
U.S.
Treasury
Obligations
(continued)
U.S.
Treasury
Notes
4.38
%
,
10/31/24
............
USD
38
$
37,574
0.75
%
,
11/15/24
............
36
34,194
1.50
%
,
02/15/25
-
01/31/27
.....
206
195,386
3.88
%
,
03/31/25
-
08/15/33
.....
856
823,913
2.63
%
,
04/15/25
............
179
172,539
2.75
%
,
05/15/25
-
08/15/32
.....
1,081
962,389
4.25
%
,
05/31/25
............
19
18,718
2.88
%
,
06/15/25
-
04/30/29
.....
238
227,250
0.25
%
,
06/30/25
-
07/31/25
.....
283
259,438
5.00
%
,
08/31/25
............
52
51,894
3.50
%
,
09/15/25
-
02/15/33
.....
382
360,978
4.00
%
,
12/15/25
-
07/31/30
.....
1,015
982,926
0.50
%
,
02/28/26
-
08/31/27
.....
804
697,697
0.88
%
,
06/30/26
-
09/30/26
.....
279
250,448
0.63
%
,
07/31/26
............
61
54,292
1.13
%
,
10/31/26
............
50
44,801
1.63
%
,
11/30/26
-
05/15/31
.....
299
254,469
1.88
%
,
02/28/27
-
02/28/29
.....
186
169,164
0.38
%
,
09/30/27
............
89
75,125
4.13
%
,
09/30/27
-
11/15/32
.....
111
107,600
1.25
%
,
03/31/28
-
08/15/31
.....
377
296,538
1.75
%
,
01/31/29
............
9
7,779
3.63
%
,
03/31/30
............
21
19,808
3.75
%
,
06/30/30
............
15
14,237
3.38
%
,
05/15/33
............
185
167,772
Total
U.S.
Treasury
Obligations
—
22.5%
(Cost:
$
9,919,126
)
..............................
8,960,105
Total
Long-Term
Investments
—
127
.9
%
(Cost:
$
55,363,819
)
..............................
50,906,848
Shares
Shares
Short-Term
Securities
Money
Market
Funds
—
5.6%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
,
5.23
%
(f)
(g)
....
2,232,587
2,232,587
Total
Short-Term
Securities
—
5
.6
%
(Cost:
$
2,232,587
)
..............................
2,232,587
Total
Options
Purchased
—
0
.6
%
(Cost:
$
174,103
)
................................
242,008
Total
Investments
Before
Options
Written
and
TBA
Sale
Commitments
—
134.1%
(Cost:
$
57,770,509
)
..............................
53,381,443
Total
Options
Written
—
(
0
.6
)
%
(Premiums
Received
—
$
(
160,504
)
)
..................
(
258,557
)
Par
(000)
Pa
r
(
000)
TBA
Sale
Commitments
(e)
Government
National
Mortgage
Association
,
4.00
%
,
10/15/53
....
(
1,766
)
(
1,590,986
)
Uniform
Mortgage-Backed
Securities
3.00
%
,
10/25/38
-
10/25/53
.....
(
337
)
(
280,716
)
2.00
%
,
10/25/53
............
(
203
)
(
154,391
)
2.50
%
,
10/25/53
............
(
1,154
)
(
915,930
)
3.50
%
,
10/25/53
............
(
199
)
(
171,124
)
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
45
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
September
30,
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
TBA
Sale
Commitments
(e)
(continued)
4.00
%
,
10/25/53
............
USD
(
1,504
)
$
(
1,338,734
)
4.50
%
,
10/25/53
............
(
277
)
(
254,321
)
5.50
%
,
10/25/53
............
(
1,733
)
(
1,675,178
)
6.00
%
,
10/25/53
............
(
403
)
(
397,711
)
Total
TBA
Sale
Commitments
—
(
17
.0
)
%
(Proceeds:
$
(
6,913,216
)
)
..........................
(
6,779,091
)
Total
Investments
Net
of
Options
Written
and
TBA
Sale
Commitments
—
116
.5
%
(Cost:
$
50,696,789
)
..............................
46,343,795
Liabilities
in
Excess
of
Other
Assets
—
(
16.5
)
%
...........
(
6,547,742
)
Net
Assets
—
100.0%
..............................
$
39,796,053
(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)
Represents
or
includes
a
TBA
transaction.
(f)
Affiliate
of
the
Fund.
(g)
Annualized
7-day
yield
as
of
period
end.
Affiliated
Issuer
Value
at
09/30/22
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/23
Shares
Held
at
09/30/23
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
...
$
2,006,214
$
226,373
(a)
$
—
$
—
$
—
$
2,232,587
2,232,587
$
131,227
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
46
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
Canada
10-Year
Bond
.......................................................
1
12/18/23
$
85
$
(
1,206
)
U.S.
Treasury
Long
Bond
.....................................................
2
12/19/23
228
(
3,293
)
U.S.
Treasury
Ultra
Bond
.....................................................
4
12/19/23
476
(
33,626
)
U.S.
Treasury
2-Year
Note
....................................................
8
12/29/23
1,622
2,026
U.S.
Treasury
5-Year
Note
....................................................
25
12/29/23
2,633
(
3,677
)
(
39,776
)
Short
Contracts
Euro-Bobl
...............................................................
7
12/07/23
857
9,028
Euro-Bund
..............................................................
1
12/07/23
136
1,815
Euro-Schatz
.............................................................
4
12/07/23
444
1,235
Australia
3-Year
Bond
.......................................................
3
12/15/23
203
1,606
U.S.
Treasury
10-Year
Note
...................................................
1
12/19/23
108
342
U.S.
Treasury
10-Year
Ultra
Note
...............................................
7
12/19/23
781
21,241
35,267
$
(
4,509
)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation
(Depreciation)
USD
111,160
EUR
104,000
Morgan
Stanley
&
Co.
International
plc
12/20/23
$
788
USD
1,841,586
EUR
1,719,000
UBS
AG
12/20/23
17,271
USD
118,832
GBP
95,000
JPMorgan
Chase
Bank
NA
12/20/23
2,856
$
20,915
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
3-mo.
SOFR
Interest
Futures
....................
49
10/13/23
USD
95.63
USD
12,250
$
5,513
Put
3-mo.
SOFR
Interest
Futures
....................
17
10/13/23
USD
94.88
USD
4,250
13,916
3-mo.
SOFR
Interest
Futures
....................
26
10/13/23
USD
95.00
USD
6,500
29,413
3-mo.
SOFR
Interest
Futures
....................
43
10/13/23
USD
95.63
USD
10,750
115,563
158,892
$
164,405
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
1-Year
Interest
Rate
Swap
(a)
.
1-day
SOFR
At
Termination
4.50%
At
Termination
Citibank
NA
01/22/24
4
.50
%
USD
7,916
$
3,492
1-Year
Interest
Rate
Swap
(a)
.
1-day
SOFR
At
Termination
4.55%
At
Termination
Citibank
NA
01/24/24
4
.55
USD
7,916
4,028
5-Year
Interest
Rate
Swap
(a)
.
1-day
SOFR
Annual
4.24%
Semi-Annual
Citibank
NA
03/26/24
4
.24
USD
794
12,009
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
4.00%
Semi-Annual
Goldman
Sachs
International
09/29/25
4
.00
USD
15
637
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
47
OTC
Interest
Rate
Swaptions
Purchased
(continued)
Paid
by
the
Fund
Received
by
the
Fund
Description
Rate
Frequency
Rate
Frequency
Counterparty
Expiration
Date
Exercise
Rate
Notional
Amount
(000)
Value
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.24%
Semi-Annual
Barclays
Bank
plc
06/15/26
3
.24
%
USD
19
$
455
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.21%
Semi-Annual
Barclays
Bank
plc
07/20/26
3
.21
USD
23
532
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.23%
Semi-Annual
Barclays
Bank
plc
07/20/26
3
.23
USD
44
1,039
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.58%
Semi-Annual
Barclays
Bank
plc
08/03/26
3
.58
USD
40
1,336
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.63%
Semi-Annual
Barclays
Bank
plc
08/11/26
3
.63
USD
61
2,108
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.77%
Semi-Annual
Goldman
Sachs
International
09/08/26
3
.77
USD
60
2,356
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
4.15%
Semi-Annual
Citibank
NA
09/28/26
4
.15
USD
41
2,165
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
4.07%
Semi-Annual
Goldman
Sachs
International
09/28/26
4
.07
USD
85
4,251
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
4.03%
Semi-Annual
Goldman
Sachs
International
09/28/26
4
.03
USD
34
1,648
36,056
Put
5-Year
Interest
Rate
Swap
(a)
.
4.24%
Semi-Annual
1-day
SOFR
Annual
Citibank
NA
03/26/24
4
.24
USD
794
12,679
10-Year
Interest
Rate
Swap
(a)
4.00%
Semi-Annual
1-day
SOFR
Annual
Goldman
Sachs
International
09/29/25
4
.00
USD
15
776
10-Year
Interest
Rate
Swap
(a)
3.24%
Semi-Annual
1-day
SOFR
Annual
Barclays
Bank
plc
06/15/26
3
.24
USD
19
1,715
10-Year
Interest
Rate
Swap
(a)
3.23%
Semi-Annual
1-day
SOFR
Annual
Barclays
Bank
plc
07/20/26
3
.23
USD
44
3,940
10-Year
Interest
Rate
Swap
(a)
3.21%
Semi-Annual
1-day
SOFR
Annual
Barclays
Bank
plc
07/20/26
3
.21
USD
23
2,062
10-Year
Interest
Rate
Swap
(a)
3.58%
Semi-Annual
1-day
SOFR
Annual
Barclays
Bank
plc
08/03/26
3
.58
USD
40
2,979
10-Year
Interest
Rate
Swap
(a)
3.63%
Semi-Annual
1-day
SOFR
Annual
Barclays
Bank
plc
08/11/26
3
.63
USD
61
4,383
10-Year
Interest
Rate
Swap
(a)
3.77%
Semi-Annual
1-day
SOFR
Annual
Goldman
Sachs
International
09/08/26
3
.77
USD
60
4,013
10-Year
Interest
Rate
Swap
(a)
4.15%
Semi-Annual
1-day
SOFR
Annual
Citibank
NA
09/28/26
4
.15
USD
41
2,208
10-Year
Interest
Rate
Swap
(a)
4.03%
Semi-Annual
1-day
SOFR
Annual
Goldman
Sachs
International
09/28/26
4
.03
USD
34
1,974
10-Year
Interest
Rate
Swap
(a)
4.07%
Semi-Annual
1-day
SOFR
Annual
Goldman
Sachs
International
09/28/26
4
.07
USD
85
4,818
41,547
$
77,603
(a)
Forward
settling
swaption.
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
3-mo.
SOFR
Interest
Futures
.....................
49
10/13/23
USD
95.88
USD
12,250
$
(
1,838
)
Put
3-mo.
SOFR
Interest
Futures
.....................
17
10/13/23
USD
95.13
USD
4,250
(
24,438
)
3-mo.
SOFR
Interest
Futures
.....................
26
10/13/23
USD
95.25
USD
6,500
(
45,499
)
3-mo.
SOFR
Interest
Futures
.....................
43
10/13/23
USD
95.38
USD
10,750
(
88,688
)
(
158,625
)
$
(
160,463
)
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
1-Year
Interest
Rate
Swap
(a)
.
3.80%
At
Termination
1-day
SOFR
At
Termination
Citibank
NA
01/22/24
3
.80
%
USD
7,916
$
(
1,003
)
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
48
OTC
Interest
Rate
Swaptions
Written
(continued)
Paid
by
the
Fund
Received
by
the
Fund
Description
Rate
Frequency
Rate
Frequency
Counterparty
Expiration
Date
Exercise
Rate
Notional
Amount
(000)
Value
1-Year
Interest
Rate
Swap
(a)
.
3.85%
At
Termination
1-day
SOFR
At
Termination
Citibank
NA
01/24/24
3
.85
%
USD
7,916
$
(
1,168
)
5-Year
Interest
Rate
Swap
(a)
.
4.00%
Semi-Annual
1-day
SOFR
Annual
Citibank
NA
03/11/24
4
.00
USD
794
(
7,784
)
5-Year
Interest
Rate
Swap
(a)
.
4.00%
Semi-Annual
1-day
SOFR
Annual
Citibank
NA
03/12/24
4
.00
USD
794
(
7,830
)
5-Year
Interest
Rate
Swap
(a)
.
3.96%
Semi-Annual
1-day
SOFR
Annual
Barclays
Bank
plc
03/14/24
3
.96
USD
794
(
7,427
)
5-Year
Interest
Rate
Swap
(a)
.
4.03%
Semi-Annual
1-day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
03/15/24
4
.03
USD
397
(
4,192
)
10-Year
Interest
Rate
Swap
(a)
3.59%
Semi-Annual
1-day
SOFR
Annual
Bank
of
America
NA
08/29/25
3
.59
USD
30
(
839
)
10-Year
Interest
Rate
Swap
(a)
4.17%
Semi-Annual
1-day
SOFR
Annual
JPMorgan
Chase
Bank
NA
09/28/26
4
.17
USD
54
(
2,881
)
(
33,124
)
Put
5-Year
Interest
Rate
Swap
(a)
.
1-day
SOFR
Annual
4.00%
Semi-Annual
Citibank
NA
03/11/24
4
.00
USD
794
(
16,989
)
5-Year
Interest
Rate
Swap
(a)
.
1-day
SOFR
Annual
4.00%
Semi-Annual
Citibank
NA
03/12/24
4
.00
USD
794
(
17,005
)
5-Year
Interest
Rate
Swap
(a)
.
1-day
SOFR
Annual
3.96%
Semi-Annual
Barclays
Bank
plc
03/14/24
3
.96
USD
794
(
17,922
)
5-Year
Interest
Rate
Swap
(a)
.
1-day
SOFR
Annual
4.03%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
03/15/24
4
.03
USD
397
(
8,185
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.59%
Semi-Annual
Bank
of
America
NA
08/29/25
3
.59
USD
30
(
2,027
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
4.17%
Semi-Annual
JPMorgan
Chase
Bank
NA
09/28/26
4
.17
USD
54
(
2,842
)
(
64,970
)
$
(
98,094
)
(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)
1-day
SOFR
At
Termination
4.19%
At
Termination
07/29/24
(a)
07/29/25
USD
449
$
(
2,057
)
$
—
$
(
2,057
)
3.23%
At
Termination
1-day
ESTR
At
Termination
07/29/24
(a)
07/29/25
EUR
397
364
—
364
1-day
REPO_CORRA
Semi-Annual
4.38%
Semi-Annual
N/A
07/20/26
CAD
198
(
1,666
)
—
(
1,666
)
1-day
REPO_CORRA
Semi-Annual
4.40%
Semi-Annual
N/A
07/20/26
CAD
198
(
1,606
)
—
(
1,606
)
4.30%
Annual
1-day
SOFR
Annual
N/A
09/21/28
USD
80
351
—
351
4.23%
Annual
1-day
SOFR
Annual
03/20/24
(a)
03/20/29
USD
233
162
—
162
1-day
REPO_CORRA
Semi-Annual
3.54%
Semi-Annual
N/A
06/15/33
CAD
133
(
5,187
)
—
(
5,187
)
0.69%
Annual
1-day
TONAR
Annual
N/A
07/12/33
JPY
55,000
8,976
963
8,013
3.57%
Semi-Annual
1-day
REPO_CORRA
Semi-Annual
N/A
07/20/33
CAD
64
2,343
—
2,343
3.57%
Semi-Annual
1-day
REPO_CORRA
Semi-Annual
N/A
07/20/33
CAD
66
2,418
—
2,418
0.93%
Annual
1-day
TONAR
Annual
N/A
09/13/33
JPY
8,801
242
—
242
1-day
REPO_CORRA
Semi-Annual
4.00%
Semi-Annual
N/A
09/21/33
CAD
35
(
331
)
—
(
331
)
3.40%
Semi-Annual
1-day
REPO_CORRA
Semi-Annual
N/A
06/15/53
CAD
59
3,887
—
3,887
3.72%
Semi-Annual
1-day
REPO_CORRA
Semi-Annual
N/A
09/21/53
CAD
15
328
—
328
$
8,224
$
963
$
7,261
(a)
Forward
swap.
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
49
Centrally
Cleared
Inflation
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Reference
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Harmonised
Index
of
Consumer
Prices
ex.
Tobacco
All
Items
Monthly
At
Termination
2.65%
At
Termination
09/15/33
EUR
190
$
1,888
$
—
$
1,888
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
12/20/28
USD
17
$
(
414
)
$
(
336
)
$
(
78
)
$
–
$
–
$
–
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
3
.88
%
1-day
REPO_CORRA
...................................
Canadian
Overnight
Repo
Rate
5
.02
1-day
SOFR
.........................................
Secured
Overnight
Financing
Rate
5
.32
1-day
TONAR
........................................
Tokyo
Overnight
Average
Rate
(
0
.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)
............................................
$
963
$
—
$
19,996
$
(
10,847
)
$
—
OTC
Swaps
.....................................................
—
(
336
)
—
(
78
)
—
Options
Written
...................................................
N/A
N/A
30,760
(
128,813
)
(
258,557
)
(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.
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
50
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
37,293
$
—
$
37,293
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
20,915
—
—
20,915
Options
purchased
(b)
Investments
at
value
—
unaffiliated
(c)
............
—
—
—
—
242,008
—
242,008
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
18,108
1,888
19,996
$
—
$
—
$
—
$
20,915
$
297,409
$
1,888
$
320,212
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
41,802
$
—
$
41,802
Options
written
(b)
Options
written
at
value
.....................
—
—
—
—
258,557
—
258,557
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
10,847
—
10,847
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
414
—
—
—
—
414
$
—
$
414
$
—
$
—
$
311,206
$
—
$
311,620
(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.
For
the
period
ended
September
30,
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
c
ontracts
.......................
$
—
$
—
$
—
$
—
$
(
26,608
)
$
—
$
(
26,608
)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(
164,846
)
—
—
(
164,846
)
Options
purchased
(a)
.....................
—
—
—
(
29,169
)
18,451
—
(
10,718
)
Options
written
........................
—
—
—
16,969
(
144,236
)
—
(
127,267
)
Swaps
..............................
—
(
3,298
)
(
2,423
)
—
(
18,395
)
5,762
(
18,354
)
$
—
$
(3,298)
$
(2,423)
$
(177,046)
$
(170,788)
$
5,762
$
(347,793)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
c
ontracts
.......................
$
—
$
—
$
—
$
—
$
156,657
$
—
$
156,657
Forward
foreign
currency
exchange
contracts
....
—
—
—
(
75,157
)
—
—
(
75,157
)
Options
purchased
(b)
.....................
—
—
—
(
4,044
)
7,643
—
3,599
Options
written
........................
—
—
—
2,631
48,583
—
51,214
Swaps
..............................
—
1,233
—
—
11,992
1,888
15,113
$
—
$
1,233
$
—
$
(76,570)
$
224,875
$
1,888
$
151,426
(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.
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
51
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
..................................................................................
$
11,397,736
Average
notional
value
of
contracts
—
short
.................................................................................
$
4,132,770
Forward
foreign
currency
exchange
contracts
Average
amounts
purchased
—
in
USD
....................................................................................
$
2,055,258
Options
Average
value
of
option
contracts
purchased
................................................................................
$
87,993
Average
value
of
option
contracts
written
...................................................................................
$
85,031
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
$
8,411,455
Average
notional
value
of
swaption
contracts
written
...........................................................................
$
13,735,529
Credit
default
swaps
Average
notional
value
—
buy
protection
...................................................................................
$
16,806
Average
notional
value
—
sell
protection
...................................................................................
$
77,063
Interest
rate
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
1,751,066
Average
notional
value
—
receives
fixed
rate
................................................................................
$
4,032,173
Inflation
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
21,173
Average
notional
value
—
receives
fixed
rate
................................................................................
$
65,223
Total
return
swaps
Average
notional
value
...............................................................................................
$
158,250
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments
$
—
Futures
contracts
....................................................................................
$
6,429
$
10,380
Forward
f
oreign
currency
exchange
contracts
.................................................................
20,915
—
Options
(a)
(b)
........................................................................................
242,008
258,557
Swaps
—
centrally
cleared
..............................................................................
2,295
—
Swaps
—
OTC
(c)
.....................................................................................
—
414
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
271,647
$
269,351
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(
173,129
)
(
170,843
)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
98,518
$
98,508
(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)
Barclays
Bank
plc
................................
$
20,549
$
(
20,549
)
$
—
$
—
$
—
Citibank
NA
....................................
36,581
(
36,581
)
—
—
—
Goldman
Sachs
International
........................
20,473
—
—
—
20,473
JPMorgan
Chase
Bank
NA
..........................
2,856
(
2,856
)
—
—
—
Morgan
Stanley
&
Co.
International
plc
..................
788
(
788
)
—
—
—
UBS
AG
......................................
17,271
—
—
—
17,271
$
98,518
$
(
60,774
)
$
—
$
—
$
37,744
2023
BlackRock
Annual
Report
to
Shareholders
Schedule
of
Investments
(continued)
September
30,
2023
BlackRock
Sustainable
Total
Return
Fund
52
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.
Counterparty
Derivative
Liabilities
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Pledged
Cash
Collateral
Pledged
Net
Amount
of
Derivative
Liabilities
(b)(d)
Bank
of
America
NA
..............................
$
2,866
$
—
$
—
$
—
$
2,866
Barclays
Bank
plc
................................
25,349
(
20,549
)
—
—
4,800
Citibank
NA
....................................
51,779
(
36,581
)
—
—
15,198
JPMorgan
Chase
Bank
NA
..........................
6,137
(
2,856
)
—
—
3,281
Morgan
Stanley
&
Co.
International
plc
..................
12,377
(
788
)
—
—
11,589
$
98,508
$
(
60,774
)
$
—
$
—
$
37,734
(a)
The
amount
of
derivatives
available
for
offset
is
limited
to
the
amount
of
derivative
assets
and/or
liabilities
that
are
subject
to
an
MNA.
(b)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(c)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
(d)
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
...................................
$
—
$
6,021,331
$
—
$
6,021,331
Corporate
Bonds
........................................
—
11,662,567
—
11,662,567
Foreign
Agency
Obligations
.................................
—
97,336
—
97,336
Foreign
Government
Obligations
..............................
—
386,647
—
386,647
Municipal
Bonds
.........................................
—
248,745
—
248,745
Non-Agency
Mortgage-Backed
Securities
........................
—
2,174,613
—
2,174,613
U.S.
Government
Sponsored
Agency
Securities
....................
—
21,355,504
—
21,355,504
U.S.
Treasury
Obligations
...................................
—
8,960,105
—
8,960,105
Short-Term
Securities
Money
Market
Funds
......................................
2,232,587
—
—
2,232,587
Options
Purchased
Interest
rate
contracts
......................................
164,405
77,603
—
242,008
Liabilities
Investments
TBA
Sale
Commitments
....................................
—
(
6,779,091
)
—
(
6,779,091
)
$
2,396,992
$
44,205,360
$
—
$
46,602,352
Derivative
Financial
Instruments
(a)
Assets
Foreign
currency
exchange
contracts
............................
$
—
$
20,915
$
—
$
20,915
Interest
rate
contracts
.......................................
37,293
18,108
—
55,401
Other
contracts
...........................................
—
1,888
—
1,888
Liabilities
Credit
contracts
...........................................
—
(
78
)
—
(
78
)
Interest
rate
contracts
.......................................
(
202,265
)
(
108,941
)
—
(
311,206
)
$
(
164,972
)
$
(
68,108
)
$
—
$
(
233,080
)
(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.
Statements
of
Assets
and
Liabilities
September
30,
2023
53
Financial
Statements
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
BlackRock
Sustainable
Total
Return
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
..........................................................
$
42,357,983
$
46,598,038
$
51,148,856
Investments,
at
value
—
affiliated
(b)
............................................................
84,681
933,595
2,232,587
Cash
...............................................................................
30,518
5,618
8,661
Cash
pledged:
Futures
contracts
......................................................................
9,000
205,000
82,000
Centrally
cleared
swaps
..................................................................
—
92,000
27,000
Foreign
currency,
at
value
(c)
.................................................................
—
49,634
26,813
Receivables:
–
–
–
Investments
sold
......................................................................
284,673
197,672
212,841
Swaps
............................................................................
—
10,452
776
TBA
sale
commitments
..................................................................
—
—
6,913,216
Dividends
—
affiliated
...................................................................
2,277
2,024
7,621
Interest
—
unaffiliated
...................................................................
659,587
316,075
277,666
From
the
Manager
.....................................................................
13,956
96,777
166,324
Variation
margin
on
futures
contracts
.........................................................
585
10,130
6,429
Variation
margin
on
centrally
cleared
swaps
....................................................
—
43,187
2,295
Unrealized
appreciation
on:
–
–
–
Forward
foreign
currency
exchange
contracts
...................................................
—
31,250
20,915
Prepaid
expenses
.......................................................................
39,928
44,167
59,972
Total
assets
...........................................................................
43,483,188
48,635,619
61,193,972
LIABILITIES
Options
written,
at
value
(d)
..................................................................
—
1,687
258,557
TBA
sale
commitments,
at
value
(e)
............................................................
—
—
6,779,091
Payables:
–
–
–
Investments
purchased
..................................................................
780,538
2,760,219
14,053,474
Swaps
............................................................................
—
29,405
—
Accounting
services
fees
.................................................................
29,063
16,951
28,995
Administration
fees
.....................................................................
1
2
3
Proxy
fees
...........................................................................
705
705
700
Custodian
fees
........................................................................
6,418
6,201
10,023
Income
dividend
distributions
..............................................................
218,328
139,573
134,537
Professional
fees
......................................................................
109,330
80,484
90,372
Registration
fees
......................................................................
983
—
26
Service
fees
.........................................................................
20
21
26
Transfer
agent
fees
....................................................................
501
1,350
418
Other
accrued
expenses
.................................................................
1,544
5,489
30,903
Variation
margin
on
futures
contracts
.........................................................
—
33,100
10,380
Swap
premiums
received
..................................................................
—
—
336
Unrealized
depreciation
on:
–
–
–
Forward
foreign
currency
exchange
contracts
...................................................
—
758
—
OTC
swaps
..........................................................................
—
—
78
Total
liabilities
..........................................................................
1,147,431
3,075,945
21,397,919
Commitments
and
contingent
liabilities
—
—
—
NET
ASSETS
..........................................................................
$
42,335,757
$
45,559,674
$
39,796,053
Statements
of
Assets
and
Liabilities
(continued)
September
30,
2023
2023
BlackRock
Annual
Report
to
Shareholders
54
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
..........................................................................
$
50,067,098
$
49,994,507
$
50,088,263
Accumulated
loss
.......................................................................
(7,731,341)
(4,434,833)
(10,292,210)
NET
ASSETS
..........................................................................
$
42,335,757
$
45,559,674
$
39,796,053
(a)
Investments,
at
cost
—
unaffiliated
..........................................................
$
45,669,154
$
48,871,454
$
55,537,922
(b)
Investments,
at
cost
—
affiliated
............................................................
$
84,681
$
933,595
$
2,232,587
(c)
Foreign
currency,
at
cost
.................................................................
$
—
$
50,545
$
26,498
(d)
Premiums
received
....................................................................
$
—
$
5,540
$
160,504
(e)
Proceeds
received
from
TBA
sale
commitments
.................................................
$
—
$
—
$
6,913,216
Statements
of
Assets
and
Liabilities
(continued)
September
30,
2023
55
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
ASSET
VALUE
Institutional
Net
assets
.........................................................................
$
217,490
$
140,479
$
181,736
Shares
outstanding
..................................................................
25,778
15,441
22,921
Net
asset
value
.....................................................................
$
8.44
$
9.10
$
7.93
Shares
authorized
...................................................................
Unlimited
Unlimited
500
million
Par
value
.........................................................................
$
0.001
$
0.001
$
0.10
Investor
A
Net
assets
.........................................................................
$
100,831
$
107,476
$
128,484��
Shares
outstanding
..................................................................
11,950
11,813
16,203
Net
asset
value
.....................................................................
$
8.44
$
9.10
$
7.93
Shares
authorized
...................................................................
Unlimited
Unlimited
300
million
Par
value
.........................................................................
$
0.001
$
0.001
$
0.10
Class
K
Net
assets
.........................................................................
$
42,017,436
$
45,311,719
$
39,485,833
Shares
outstanding
..................................................................
4,980,000
4,980,336
4,980,000
Net
asset
value
.....................................................................
$
8.44
$
9.10
$
7.93
Shares
authorized
...................................................................
Unlimited
Unlimited
500
million
Par
value
.........................................................................
$
0.001
$
0.001
$
0.10
Statements
of
Operations
Year
Ended
September
30,
2023
2023
BlackRock
Annual
Report
to
Shareholders
56
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
.................................................................
$
871
$
—
$
—
Dividends
—
affiliated
...................................................................
38,753
33,894
131,227
Interest
—
unaffiliated
...................................................................
2,605,609
1,749,289
1,558,519
Total
investment
income
...................................................................
2,645,233
1,783,183
1,689,746
EXPENSES
Investment
advisory
....................................................................
213,169
142,482
161,786
Professional
.........................................................................
186,302
145,262
195,988
Accounting
services
....................................................................
85,096
50,513
94,963
Registration
.........................................................................
64,213
61,717
77,640
Printing
and
postage
...................................................................
46,367
43,132
49,936
Administration
.......................................................................
18,120
19,534
17,631
Custodian
...........................................................................
13,397
6,686
20,160
Administration
—
class
specific
............................................................
8,528
9,192
8,298
Directors
and
Officer
...................................................................
1,576
1,469
1,557
Transfer
agent
—
class
specific
............................................................
324
1,722
300
Service
and
distribution
—
class
specific
......................................................
224
274
288
Offering
............................................................................
—
6,673
8,992
Pricing
.............................................................................
—
—
45,474
Miscellaneous
........................................................................
9,360
14,883
14,071
Total
expenses
.........................................................................
646,676
503,539
697,084
Less:
–
–
–
Administration
fees
waived
...............................................................
(18,120)
(19,534)
(17,631)
Administration
fees
waived
by
the
Manager
—
class
specific
.........................................
(8,517)
(9,178)
(8,276)
Fees
waived
and/or
reimbursed
by
the
Manager
.................................................
(392,278)
(311,245)
(508,080)
Transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific
............................
(248)
(1,652)
(216)
Total
expenses
after
fees
waived
and/or
reimbursed
................................................
227,513
161,930
162,881
Net
investment
income
....................................................................
2,417,720
1,621,253
1,526,865
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
1,369,845
$
(77,874)
$
(920,261)
Net
realized
gain
(loss)
from:
Investments
—
unaffiliated
.............................................................
$
(2,425,575)
$
(1,476,598)
$
(2,599,262)
Forward
foreign
currency
exchange
contracts
.................................................
—
(188,812)
(164,846)
Foreign
currency
transactions
...........................................................
—
(12,662)
(10,727)
Futures
contracts
....................................................................
(43,249)
8,174
(26,608)
Options
written
.....................................................................
34,639
—
(127,267)
Swaps
..........................................................................
—
(162,090)
(18,354)
(2,434,185)
(1,831,988)
(2,947,064)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
unaffiliated
.............................................................
3,819,836
1,766,102
1,876,508
Forward
foreign
currency
exchange
contracts
.................................................
—
(51,508)
(75,157)
Foreign
currency
translations
............................................................
—
246
2,468
Futures
contracts
....................................................................
(15,806)
25,657
156,657
Options
written
.....................................................................
—
3,853
51,214
Swaps
..........................................................................
—
9,765
15,113
3,804,030
1,754,115
2,026,803
Net
realized
and
unrealized
gain
(loss)
.........................................................
1,369,845
(77,873)
(920,261)
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
....................................
$
3,787,565
$
1,543,380
$
606,604
Statements
of
Changes
in
Net
Assets
57
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
Year
Ended
09/30/23
Year
Ended
09/30/22
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
............................................
$
2,417,720
$
1,844,109
$
1,621,253
$
588,548
Net
realized
gain
(loss)
............................................
(2,434,185)
(1,686,978)
(1,831,988)
217,270
Net
change
in
unrealized
appreciation
(depreciation)
........................
3,804,030
(6,898,321)
1,754,115
(3,882,106)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...................
3,787,565
(6,741,190)
1,543,380
(3,076,288)
DISTRIBUTIONS
TO
SHAREHOLDERS
(b)
Institutional
...................................................
(6,726)
(4,082)
(4,614)
(1,298)
Investor
A
....................................................
(5,049)
(3,877)
(5,191)
(1,738)
Class
K
......................................................
(2,511,492)
(2,040,030)
(2,302,577)
(664,697)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.................
(2,523,267)
(2,047,989)
(2,312,382)
(667,733)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
.................
148,952
4,263
51,755
50,020,942
NET
ASSETS
Total
increase
(decrease)
in
net
assets
...................................
1,413,250
(8,784,916)
(717,247)
46,276,921
Beginning
of
p
eriod
................................................
40,922,507
49,707,423
46,276,921
—
End
of
p
eriod
....................................................
$
42,335,757
$
40,922,507
$
45,559,674
$
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)
2023
BlackRock
Annual
Report
to
Shareholders
58
See
notes
to
financial
statements.
BlackRock
Sustainable
Total
Return
Fund
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..............................................................................
$
1,526,865
$
810,640
Net
realized
loss
..................................................................................
(2,947,064)
(2,450,609)
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
2,026,803
(6,354,000)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.....................................................
606,604
(7,993,969)
DISTRIBUTIONS
TO
SHAREHOLDERS
(b)
Institutional
.....................................................................................
(4,251)
(1,685)
Investor
A
......................................................................................
(5,248)
(1,566)
Class
K
........................................................................................
(2,103,823)
(857,656)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(2,113,322)
(860,907)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
...................................................
146,033
50,011,614
NET
ASSETS
Total
increase
(decrease)
in
net
assets
.....................................................................
(1,360,685)
41,156,738
Beginning
of
period
..................................................................................
41,156,738
—
End
of
period
......................................................................................
$
39,796,053
$
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)
59
Financial
Highlights
BlackRock
Sustainable
High
Yield
Bond
Fund
Institutional
Year
Ended
09/30/23
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)
...............................................................
0.49
0.37
0.05
Net
realized
and
unrealized
gain
(loss)
......................................................
0.27
(1.72
)
(0.05
)
Net
increase
(decrease)
from
investment
operations
..............................................
0.76
(1.35
)
0.00
Distributions
from
net
investment
income
(c)
..................................................
(0.50
)
(0.41
)
(0.06
)
Net
asset
value,
end
of
period
............................................................
$
8.44
$
8.18
$
9.94
Total
Return
(d)
—
—
—
Based
on
net
asset
value
................................................................
9.40
%
(13.97
)%
0.01
%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.......................................................................
1.56
%
1.75
%
1.32
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................
0.58
%
0.57
%
0.58
%
(g)
Net
investment
income
.................................................................
5.70
%
3.96
%
2.80
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................
$
217
$
83
$
99
Portfolio
turnover
rate
...................................................................
37
%
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)
2023
BlackRock
Annual
Report
to
Shareholders
60
BlackRock
Sustainable
High
Yield
Bond
Fund
Investor
A
Year
Ended
09/30/23
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)
................................................................
0.46
0.34
0.05
Net
realized
and
unrealized
gain
(loss)
.......................................................
0.28
(1.72
)
(0.05
)
Net
increase
(decrease)
from
investment
operations
...............................................
0.74
(1.38
)
0.00
Distributions
from
net
investment
income
(c)
...................................................
(0.48
)
(0.38
)
(0.06
)
Net
asset
value,
end
of
period
.............................................................
$
8.44
$
8.18
$
9.94
Total
Return
(d)
—
—
—
Based
on
net
asset
value
.................................................................
9.13
%
(14.18
)%
(0.03
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
........................................................................
1.83
%
2.00
%
1.58
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
...............................................
0.83
%
0.82
%
0.83
%
(g)
Net
investment
income
..................................................................
5.39
%
3.71
%
2.55
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
.............................................................
$
101
$
84
$
99
Portfolio
turnover
rate
....................................................................
37
%
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)
61
Financial
Highlights
BlackRock
Sustainable
High
Yield
Bond
Fund
Class
K
Year
Ended
09/30/23
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)
...............................................................
0.48
0.37
0.05
Net
realized
and
unrealized
gain
(loss)
......................................................
0.28
(1.72
)
(0.05
)
Net
increase
(decrease)
from
investment
operations
..............................................
0.76
(1.35
)
0.00
Distributions
from
net
investment
income
(c)
..................................................
(0.50
)
(0.41
)
(0.06
)
Net
asset
value,
end
of
period
............................................................
$
8.44
$
8.18
$
9.94
Total
Return
(d)
—
—
—
Based
on
net
asset
value
................................................................
9.44
%
(13.93
)%
0.02
%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.......................................................................
1.52
%
1.46
%
0.96
%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................
0.53
%
0.53
%
0.53
%
(g)
Net
investment
income
.................................................................
5.67
%
4.00
%
2.85
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................
$
42,017
$
40,755
$
49,509
Portfolio
turnover
rate
...................................................................
37
%
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)
2023
BlackRock
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)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
(h)
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.
(i)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Low
Duration
Bond
Fund
Institutional
Year
Ended
09/30/23
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
.32
0
.11
Net
realized
and
unrealized
loss
..........................................................................
(
0
.01
)
(
0
.73
)
Net
increase
(decrease)
from
investment
operations
..............................................................
0.31
(0.62
)
Distributions
from
net
investment
income
(c)
..................................................................
(0.46
)
(0.13
)
Net
asset
value,
end
of
period
............................................................................
$
9.10
$
9.25
Total
Return
(d)
—
—
Based
on
net
asset
value
................................................................................
3.40
%
(6.24
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
.......................................................................................
1.14
%
1.31
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................
0.39
%
0.37
%
(g)
(h)
Net
investment
income
.................................................................................
3.49
%
1.24
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................................
$
140
$
93
Portfolio
turnover
rate
(i)
..................................................................................
201
%
178
%
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
174%
167%
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)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
(h)
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.
(i)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Low
Duration
Bond
Fund
Investor
A
Year
Ended
09/30/23
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
.30
0
.10
Net
realized
and
unrealized
loss
..........................................................................
(
0
.01
)
(
0
.74
)
Net
increase
(decrease)
from
investment
operations
..............................................................
0.29
(0.64
)
Distributions
from
net
investment
income
(c)
..................................................................
(0.44
)
(0.11
)
Net
asset
value,
end
of
period
............................................................................
$
9.10
$
9.25
Total
Return
(d)
—
—
Based
on
net
asset
value
................................................................................
3.14
%
(6.46
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
.......................................................................................
2.72
%
1.48
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................
0.65
%
0.62
%
(g)
(h)
Net
investment
income
.................................................................................
3.23
%
1.08
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................................
$
107
$
110
Portfolio
turnover
rate
(i)
..................................................................................
201
%
178
%
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
174%
167%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2023
BlackRock
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)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
(h)
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.
(i)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Low
Duration
Bond
Fund
Class
K
Year
Ended
09/30/23
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
.32
0
.12
Net
realized
and
unrealized
loss
..........................................................................
(
0
.01
)
(
0
.74
)
Net
increase
(decrease)
from
investment
operations
..............................................................
0.31
(0.62
)
Distributions
from
net
investment
income
(c)
..................................................................
(0.46
)
(0.13
)
Net
asset
value,
end
of
period
............................................................................
$
9.10
$
9.25
Total
Return
(d)
—
—
Based
on
net
asset
value
................................................................................
3.44
%
(6.20
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
.......................................................................................
1.09
%
1.04
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................
0.35
%
0.33
%
(g)
(h)
Net
investment
income
.................................................................................
3.53
%
1.28
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................................
$
45,312
$
46,074
Portfolio
turnover
rate
(i)
..................................................................................
201
%
178
%
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
174%
167%
See
notes
to
financial
statements.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
65
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)
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)
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
1.61%
and
0.43%,
respectively.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Total
Return
Fund
Institutional
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
......................................................................
$
8.23
$
10.00
Net
investment
income
(b)
..............................................................................
0.30
0.16
Net
realized
and
unrealized
loss
.........................................................................
(0.18
)
(1.76
)
Net
increase
(decrease)
from
investment
operations
.............................................................
0.12
(1.60
)
Distributions
from
net
investment
income
(c)
.................................................................
(0.42
)
(0.17
)
Net
asset
value,
end
of
period
...........................................................................
$
7.93
$
8.23
Total
Return
(d)
—
—
Based
on
net
asset
value
...............................................................................
1.33
%
(16.16
)%
(e)(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
......................................................................................
1.80
%
1.58
%
(h)(i)
Total
expenses
after
fees
waived
and/or
reimbursed
.............................................................
0.43
%
0.40
%
(h)(i)
Net
investment
income
................................................................................
3.64
%
1.80
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
...........................................................................
$
182
$
82
Portfolio
turnover
rate
(j)
.................................................................................
704
%
604
%
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
434%
360%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2023
BlackRock
Annual
Report
to
Shareholders
66
(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)
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
1.84%
and
0.73%,
respectively.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Total
Return
Fund
Investor
A
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
......................................................................
$
8.23
$
10.00
Net
investment
income
(b)
..............................................................................
0.28
0.13
Net
realized
and
unrealized
loss
.........................................................................
(0.18
)
(1.76
)
Net
increase
(decrease)
from
investment
operations
.............................................................
0.10
(1.63
)
Distributions
from
net
investment
income
(c)
.................................................................
(0.40
)
(0.14
)
Net
asset
value,
end
of
period
...........................................................................
$
7.93
$
8.23
Total
Return
(d)
—
—
Based
on
net
asset
value
...............................................................................
1.06
%
(16.38
)%
(e)(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
......................................................................................
2.05
%
1.81
%
(h)(i)
Total
expenses
after
fees
waived
and/or
reimbursed
.............................................................
0.71
%
0.70
%
(h)(i)
Net
investment
income
................................................................................
3.42
%
1.53
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
...........................................................................
$
128
$
92
Portfolio
turnover
rate
(j)
.................................................................................
704
%
604
%
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
434%
360%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
67
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)
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)
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
1.33%
and
0.39%,
respectively.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Sustainable
Total
Return
Fund
Class
K
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
......................................................................
$
8.23
$
10.00
Net
investment
income
(b)
..............................................................................
0.31
0.16
Net
realized
and
unrealized
loss
.........................................................................
(0.19
)
(1.76
)
Net
increase
(decrease)
from
investment
operations
.............................................................
0.12
(1.60
)
Distributions
from
net
investment
income
(c)
.................................................................
(0.42
)
(0.17
)
Net
asset
value,
end
of
period
...........................................................................
$
7.93
$
8.23
Total
Return
(d)
—
—
Based
on
net
asset
value
...............................................................................
1.37
%
(16.12
)%
(e)(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
......................................................................................
1.68
%
1.30
%
(h)(i)
Total
expenses
after
fees
waived
and/or
reimbursed
.............................................................
0.39
%
0.36
%
(h)(i)
Net
investment
income
................................................................................
3.68
%
1.84
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
...........................................................................
$
39,486
$
40,982
Portfolio
turnover
rate
(j)
.................................................................................
704
%
604
%
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..............................................................................
434%
360%
See
notes
to
financial
statements.
Notes
to
Financial
Statements
2023
BlackRock
Annual
Report
to
Shareholders
68
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
(continued)
69
Notes
to
Financial
Statements
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
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
70
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
(continued)
71
Notes
to
Financial
Statements
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.
Stripped
Mortgage-Backed
Securities:
Stripped
mortgage-backed
securities
are
typically
issued
by
the
U.S.
Government,
its
agencies
and
instrumentalities.
Stripped
mortgage-backed
securities
are
usually
structured
with
two
classes
that
receive
different
proportions
of
the
interest
(IOs)
and
principal
(POs)
distributions
on
a
pool
of
mortgage
pass-through
securities
(the
“Mortgage
Assets”).
Stripped
mortgage-backed
securities
may
be
privately
issued.
Zero-Coupon
Bonds:
Zero-coupon
bonds
are
normally
issued
at
a
significant
discount
from
face
value
and
do
not
provide
for
periodic
interest
payments.
These
bonds
may
experience
greater
volatility
in
market
value
than
other
debt
obligations
of
similar
maturity
which
provide
for
regular
interest
payments.
Capital
Securities
and
Trust
Preferred
Securities:
Capital
securities,
including
trust
preferred
securities,
are
typically
issued
by
corporations,
generally
in
the
form
of
interest-bearing
notes
with
preferred
securities
characteristics.
In
the
case
of
trust
preferred
securities,
an
affiliated
business
trust
of
a
corporation
issues
these
securities,
generally
in
the
form
of
beneficial
interests
in
subordinated
debentures
or
similarly
structured
securities.
The
securities
can
be
structured
with
either
a
fixed
or
adjustable
coupon
that
can
have
either
a
perpetual
or
stated
maturity
date.
For
trust
preferred
securities,
the
issuing
bank
or
corporation
pays
interest
to
the
trust,
which
is
then
distributed
to
holders
of
these
securities
as
a
dividend.
Dividends
can
be
deferred
without
creating
an
event
of
default
or
acceleration,
although
maturity
cannot
take
place
unless
all
cumulative
payment
obligations
have
been
met.
The
deferral
of
payments
does
not
affect
the
purchase
or
sale
of
these
securities
in
the
open
market.
These
securities
generally
are
rated
below
that
of
the
issuing
company’s
senior
debt
securities
and
are
freely
callable
at
the
issuer’s
option.
Preferred
Stocks:
Preferred
stock
has
a
preference
over
common
stock
in
liquidation
(and
generally
in
receiving
dividends
as
well),
but
is
subordinated
to
the
liabilities
of
the
issuer
in
all
respects.
As
a
general
rule,
the
market
value
of
preferred
stock
with
a
fixed
dividend
rate
and
no
conversion
element
varies
inversely
with
interest
rates
and
perceived
credit
risk,
while
the
market
price
of
convertible
preferred
stock
generally
also
reflects
some
element
of
conversion
value.
Because
preferred
stock
is
junior
to
debt
securities
and
other
obligations
of
the
issuer,
deterioration
in
the
credit
quality
of
the
issuer
will
cause
greater
changes
in
the
value
of
a
preferred
stock
than
in
a
more
senior
debt
security
with
similar
stated
yield
characteristics.
Unlike
interest
payments
on
debt
securities,
preferred
stock
dividends
are
payable
only
if
declared
by
the
issuer’s
board
of
directors.
Preferred
stock
also
may
be
subject
to
optional
or
mandatory
redemption
provisions.
Floating
Rate
Loan
Interests:
Floating
rate
loan
interests
are
typically
issued
to
companies
(the
“borrower”)
by
banks,
other
financial
institutions,
or
privately
and
publicly
offered
corporations
(the
“lender”).
Floating
rate
loan
interests
are
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
Secured
Overnight
Financing
Rate
Notes
to
Financial
Statements
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
72
(“SOFR”),
the
prime
rate
offered
by
one
or
more
U.S.
banks
or
the
certificate
of
deposit
rate.
Floating
rate
loan
interests
may
involve
foreign
borrowers,
and
investments
may
be
denominated
in
foreign
currencies.
These
investments
are
treated
as
investments
in
debt
securities
for
purposes
of
a
fund’s
investment
policies.
When
a
fund
purchases
a
floating
rate
loan
interest,
it
may
receive
a
facility
fee
and
when
it
sells
a
floating
rate
loan
interest,
it
may
pay
a
facility
fee.
On
an
ongoing
basis,
a
fund
may
receive
a
commitment
fee
based
on
the
undrawn
portion
of
the
underlying
line
of
credit
amount
of
a
floating
rate
loan
interest.
Facility
and
commitment
fees
are
typically
amortized
to
income
over
the
term
of
the
loan
or
term
of
the
commitment,
respectively.
Consent
and
amendment
fees
are
recorded
to
income
as
earned.
Prepayment
penalty
fees,
which
may
be
received
by
a
fund
upon
the
prepayment
of
a
floating
rate
loan
interest
by
a
borrower,
are
recorded
as
realized
gains.
A
fund
may
invest
in
multiple
series
or
tranches
of
a
loan.
A
different
series
or
tranche
may
have
varying
terms
and
carry
different
associated
risks.
Floating
rate
loan
interests
are
usually
freely
callable
at
the
borrower’s
option.
A
fund
may
invest
in
such
loans
in
the
form
of
participations
in
loans
(“Participations”)
or
assignments
(“Assignments”)
of
all
or
a
portion
of
loans
from
third
parties.
Participations
typically
will
result
in
a
fund
having
a
contractual
relationship
only
with
the
lender,
not
with
the
borrower.
A
fund
has
the
right
to
receive
payments
of
principal,
interest
and
any
fees
to
which
it
is
entitled
only
from
the
lender
selling
the
Participation
and
only
upon
receipt
by
the
lender
of
the
payments
from
the
borrower.
In
connection
with
purchasing
Participations,
a
fund
generally
will
have
no
right
to
enforce
compliance
by
the
borrower
with
the
terms
of
the
loan
agreement,
nor
any
rights
of
offset
against
the
borrower.
A
fund
may
not
benefit
directly
from
any
collateral
supporting
the
loan
in
which
it
has
purchased
the
Participation.
As
a
result,
a
fund
assumes
the
credit
risk
of
both
the
borrower
and
the
lender
that
is
selling
the
Participation.
A
fund’s
investment
in
loan
participation
interests
involves
the
risk
of
insolvency
of
the
financial
intermediaries
who
are
parties
to
the
transactions.
In
the
event
of
the
insolvency
of
the
lender
selling
the
Participation,
a
fund
may
be
treated
as
a
general
creditor
of
the
lender
and
may
not
benefit
from
any
offset
between
the
lender
and
the
borrower.
Assignments
typically
result
in
a
fund
having
a
direct
contractual
relationship
with
the
borrower,
and
a
fund
may
enforce
compliance
by
the
borrower
with
the
terms
of
the
loan
agreement.
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).
Notes
to
Financial
Statements
(continued)
73
Notes
to
Financial
Statements
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.
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
Notes
to
Financial
Statements
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
74
to
the
notional
amount
of
the
swap
and
deliver
the
referenced
security
or
underlying
securities
comprising
the
index,
or
(ii)
receive
a
net
settlement
of
cash
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
security
or
underlying
securities
comprising
the
index.
As
a
seller
(writer),
if
an
underlying
credit
event
occurs,
the
Funds
will
either
pay
the
buyer
an
amount
equal
to
the
notional
amount
of
the
swap
and
take
delivery
of
the
referenced
security
or
underlying
securities
comprising
the
index
or
pay
a
net
settlement
of
cash
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
security
or
underlying
securities
comprising
the
index.
Total
return
swaps
—
Total
return
swaps
are
entered
into
to
obtain
exposure
to
a
security
or
market
without
owning
such
security
or
investing
directly
in
such
market
or
to
exchange
the
risk/return
of
one
security
or
market
(e.g.,
fixed-income)
with
another
security
or
market
(e.g.,
equity
or
commodity
prices)
(equity
risk,
commodity
price
risk
and/or
interest
rate
risk).
Total
return
swaps
are
agreements
in
which
there
is
an
exchange
of
cash
flows
whereby
one
party
commits
to
make
payments
based
on
the
total
return
(distributions
plus
capital
gains/losses)
of
an
underlying
instrument,
or
basket
of
underlying
instruments,
in
exchange
for
fixed
or
floating
rate
interest
payments.
If
the
total
return
of
the
instrument(s)
or
index
underlying
the
transaction
exceeds
or
falls
short
of
the
offsetting
fixed
or
floating
interest
rate
obligation,
the
Funds
receive
payment
from
or
make
a
payment
to
the
counterparty.
Interest
rate
swaps
—
Interest
rate
swaps
are
entered
into
to
gain
or
reduce
exposure
to
interest
rates
or
to
manage
duration,
the
yield
curve
or
interest
rate
(interest
rate
risk).
Interest
rate
swaps
are
agreements
in
which
one
party
pays
a
stream
of
interest
payments,
either
fixed
or
floating,
in
exchange
for
another
party’s
stream
of
interest
payments,
either
fixed
or
floating,
on
the
same
notional
amount
for
a
specified
period
of
time.
In
more
complex
interest
rate
swaps,
the
notional
principal
amount
may
decline
(or
amortize)
over
time.
Forward
swaps
— 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.
Inflation
swaps
—
Inflation
swaps
are
entered
into
to
gain
or
reduce
exposure
to
inflation
(inflation
risk).
In
an
inflation
swap,
one
party
makes
fixed
interest
payments
on
a
notional
principal
amount
in
exchange
for
another
party’s
variable
payments
based
on
an
inflation
index,
such
as
the
Consumer
Price
Index.
Swap
transactions
involve,
to
varying
degrees,
elements
of
interest
rate,
credit
and
market
risks
in
excess
of
the
amounts
recognized
in
the
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
derivative
contract
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
(continued)
75
Notes
to
Financial
Statements
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 year
ended
September
30,
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
year
ended
September
30,
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
year
ended September
30,
2023,
the
Funds
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
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 year
ended
September
30,
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:
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
..................................................................................................
$
224
Sustainable
Low
Duration
Bond
................................................................................................
274
Sustainable
Total
Return
.....................................................................................................
288
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
...................................................................
$
23
$
19
$
8,486
$
8,528
Sustainable
Low
Duration
Bond
.................................................................
18
22
9,152
9,192
Sustainable
Total
Return
......................................................................
18
23
8,257
8,298
Notes
to
Financial
Statements
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
76
For
the
year ended
September
30,
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
year
ended
September
30,
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
Statement
of
Operations.
For
the
year
ended
September
30,
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 year
ended
September
30,
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
in
the
Statements
of
Operations.
For
the year
ended
September
30,
2023,
the
amounts
waived
were
as
follows:
Fund
Name
Institutional
Investor
A
Class
K
Total
Sustainable
High
Yield
Bond
...................................................................
$
69
$
60
$
195
$
324
Sustainable
Low
Duration
Bond
.................................................................
29
65
181
275
Sustainable
Total
Return
......................................................................
29
77
194
300
Fund
Name
Institutional
Investor
A
Class
K
Total
Sustainable
High
Yield
Bond
...................................................................
$
69
$
60
$
195
$
324
Sustainable
Low
Duration
Bond
.................................................................
29
1,512
181
1,722
Sustainable
Total
Return
......................................................................
29
77
194
300
Fund
Name
Amounts
Waived
Sustainable
High
Yield
Bond
.............................................................................................
$
690
Sustainable
Low
Duration
Bond
...........................................................................................
574
Sustainable
Total
Return
................................................................................................
2,232
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
...................................................................................................
$
391,588
Sustainable
Low
Duration
Bond
.................................................................................................
310,671
Sustainable
Total
Return
......................................................................................................
505,848
Fund
Name
Administration
fees
waived
Sustainable
High
Yield
Bond
...................................................................................................
$
18,120
Sustainable
Low
Duration
Bond
.................................................................................................
19,534
Sustainable
Total
Return
......................................................................................................
17,631
Notes
to
Financial
Statements
(continued)
77
Notes
to
Financial
Statements
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
year ended
September
30,
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
September
30,
2023,
the
fund
level
and
class
specific
waivers
and/or
reimbursements
subject
to
possible
future
recoupment
under
the
expense
limitation
agreement were
as
follows:
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
....................................................................................
$
17
$
26
Investor
A
.....................................................................................
14
27
Class
K
......................................................................................
8,486
195
$
8,517
$
248
Sustainable
Low
Duration
Bond
Institutional
....................................................................................
10
—
Investor
A
.....................................................................................
16
1,471
Class
K
......................................................................................
9,152
181
$
9,178
$
1,652
Sustainable
Total
Return
Institutional
....................................................................................
12
2
Investor
A
.....................................................................................
7
20
Class
K
......................................................................................
8,257
194
$
8,276
$
216
Expiring
September
30,
Fund
Name/Fund
Level/Share
Class
2024
2025
Sustainable
High
Yield
Bond
Fund
Level
......................................................................................
$
419,665
$
409,708
Institutional
......................................................................................
246
43
Investor
A
.......................................................................................
246
41
Class
K
.........................................................................................
9,456
8,681
Sustainable
Low
Duration
Bond
Fund
Level
......................................................................................
300,554
330,205
Institutional
......................................................................................
229
10
Investor
A
.......................................................................................
221
1,487
Class
K
.........................................................................................
9,414
9,333
Sustainable
Total
Return
Fund
Level
......................................................................................
381,248
523,479
Institutional
......................................................................................
231
14
Investor
A
.......................................................................................
187
2
7
Class
K
.........................................................................................
9,014
8,451
Notes
to
Financial
Statements
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
78
The
following
fund
level
and
class
specific
waivers
and/or
reimbursements
previously
recorded
by
the
Fund,
which
were
subject
to
recoupment
by
the
Manager,
expired
on
September
30,
2023:
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
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 year
ended
September
30,
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
Trust’s
Chief
Compliance
Officer,
which
is
included
in
Directors
and
Officer
in
the
Statements
of
Operations.
7.
PURCHASES
AND
SALES
For
the year ended
September
30,
2023,
purchases
and
sales
of
investments,
including
paydowns,
mortgage
dollar
rolls and
excluding
short-term
securities,
were
as
follows:
For
the year ended
September
30,
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
September
30,
2023,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Funds’
financial
statements.
U.S.
GAAP
requires
that
certain
components
of
net
assets
be
adjusted
to
reflect
permanent
differences
between
financial
and
tax
reporting.
These
reclassifications
have
no
effect
on
net
assets
or NAVs
per
share.
As
of
period
end,
permanent
differences
attributable
to
non-deductible
expenses
were reclassified
to
the
following
accounts:
Sustainable
High
Yield
Bond
Fund
Level
.............................................................................................................
$
132,183
Institutional
.............................................................................................................
64
Investor
A
..............................................................................................................
64
Class
K
...............................................................................................................
1,977
U.S.
Government
Securities
Other
Securities
Fund
Name
Purchases
Sales
Purchases
Sales
Sustainable
High
Yield
Bond
..............................................
$
—
$
—
$
16,498,245
$
15,186,629
Sustainable
Low
Duration
Bond
............................................
30,513,078
33,253,960
57,482,513
54,203,322
Sustainable
Total
Return
.................................................
25,830,234
19,946,318
281,798,324
284,589,753
Fund
Name
Purchases
Sales
Sustainable
Low
Duration
Bond
............................................................................
$
11,614,585
$
11,613,088
Sustainable
Total
Return
.................................................................................
117,020,644
116,984,389
Fund
Name
Paid-In
Capital
Accumulated
Earnings
(Loss)
Sustainable
Low
Duration
Bond
.................................................................
(3,268)
3,268
Sustainable
Total
Return
......................................................................
(2,876)
2,876
—
Notes
to
Financial
Statements
(continued)
79
Notes
to
Financial
Statements
The
tax
character
of
distributions
paid
was
as
follows:
As
of
September
30,
2023,
the
tax
components
of
accumulated earnings
(loss) were
as
follows:
As
of
September
30,
2023, gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows:
9.
BANK
BORROWINGS
The
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,
(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
SOFR
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.10%
and
(y) 0.80%
per
annum.
The
agreement
expires
in
April
2024
unless
extended
or
renewed.
These
fees
were
allocated
among
such
funds
based
upon
portions
of
the
aggregate
commitment
available
to
them
and
relative
net
assets
of
Participating
Funds.
During
the year ended
September
30,
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.
Fund
Name
Year
Ended
09/30/23
Year
Ended
09/30/22
Sustainable
High
Yield
Bond
Ordinary
income
...........................................................................................
$
2,523,267
$
2,047,989
Sustainable
Low
Duration
Bond
Ordinary
income
...........................................................................................
$
2,312,382
$
667,733
Sustainable
Total
Return
Ordinary
income
...........................................................................................
$
2,113,322
$
860,907
Fund
Name
Undistributed
Ordinary
Income
Non-Expiring
Capital
Loss
Carryforwards
(a)
Net
Unrealized
Gains
(Losses)
(b)
Qualified
Late-Year
Ordinary
Losses
(c)
Total
Sustainable
High
Yield
Bond
...............................
$
3,919
$
(4,188,151)
$
(3,547,109)
$
—
$
(7,731,341)
Sustainable
Low
Duration
Bond
.............................
—
(1,735,629)
(2,308,705)
(390,499)
(4,434,833)
Sustainable
Total
Return
..................................
—
(5,592,301)
(4,392,547)
(307,362)
(10,292,210)
(a)
Amounts
available
to
offset
future
realized
capital
gains.
(b)
The
difference
between
book-basis
and
tax-basis
net
unrealized
gains
(losses)
was
attributable
primarily
to
the
tax
deferral
of
losses
on
wash
sales,
amortization
and
accretion
methods
of
premiums
and
discounts
on
fixed
income
securities,
the
realization
for
tax
purposes
of
unrealized
gains
(losses)
on
certain
futures
and
foreign
currency
exchange
contracts,
the
accounting
for
swap
agreements
and
classification
of
investments.
(c)
The
Fund
has
elected
to
defer
these
qualified
late-year
losses
and
recognize
such
losses
in
the
next
taxable
year.
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Sustainable
High
Yield
Bond
..........................................
$
45,989,773
$
62,854
$
(3,609,963)
$
(3,547,109)
Sustainable
Low
Duration
Bond
........................................
49,869,573
99,427
(2,406,774)
(2,307,347)
Sustainable
Total
Return
............................................
57,829,114
345,105
(4,737,972)
(4,392,867)
Notes
to
Financial
Statements
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
80
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
and
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
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.
Geographic/Asset
Class
Risk:
A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund’s
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
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
period
of
historically
low
interest
rates
that
ended
in
March
2022.
The
Federal
Reserve
has
recently
been
raising
the
federal
funds
rate
as
part
of
its
efforts
to
address
inflation.
There
is
a
risk
that
interest
rates
will
continue
to
rise,
which
will
likely
drive
down
the
prices
of
bonds
and
other
fixed-income
securities,
and
could
negatively
impact certain
Funds’
performance.
Notes
to
Financial
Statements
(continued)
81
Notes
to
Financial
Statements
The
Funds invest
a
significant
portion
of their
assets
in
securities
of
issuers
located
in
the
United
States.
A
decrease
in
imports
or
exports,
changes
in
trade
regulations,
inflation
and/or
an
economic
recession
in
the
United
States
may
have
a
material
adverse
effect
on
the
U.S.
economy
and
the
securities
listed
on
U.S.
exchanges.
Proposed
and
adopted
policy
and
legislative
changes
in
the
United
States
may
also
have
a
significant
effect
on
U.S.
markets
generally,
as
well
as
on
the
value
of
certain
securities.
Governmental
agencies
project
that
the
United
States
will
continue
to
maintain
elevated
public
debt
levels
for
the
foreseeable
future
which
may
constrain
future
economic
growth.
Circumstances
could
arise
that
could
prevent
the
timely
payment
of
interest
or
principal
on
U.S.
government
debt,
such
as
reaching
the
legislative
“debt
ceiling.”
Such
non-payment
would
result
in
substantial
negative
consequences
for
the
U.S.
economy
and
the
global
financial
system.
If
U.S.
relations
with
certain
countries
deteriorate,
it
could
adversely
affect
issuers
that
rely
on
the
United
States
for
trade.
The
United
States
has
also
experienced
increased
internal
unrest
and
discord.
If
these
trends
were
to
continue,
they
may
have
an
adverse
impact
on
the
U.S.
economy
and
the
issuers
in
which
the
Funds
invest.
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
recently
transitioned
from,
or
continue
to
be
tied
to,
the
London
Interbank
Offered
Rate
(“LIBOR”)
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
United
Kingdom’s
Financial
Conduct
Authority,
which
regulates
LIBOR,
has
ceased
publishing
all
LIBOR
settings,
but
some
USD
LIBOR
settings
will
continue
to
be
published
under
a
synthetic
methodology
until
September
30,
2024
for
certain
legacy
contracts.
SOFR
has
been
used
increasingly
on
a
voluntary
basis
in
new
instruments
and
transactions. Under
U.S.
regulations
that
implement
a
statutory
fallback
mechanism
to
replace
LIBOR,
benchmark
rates
based
on
SOFR
have
replaced
LIBOR
in
certain
financial
products
contracts.
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
Year
Ended
09/30/23
Year
Ended
09/30/22
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
Sustainable
High
Yield
Bond
Institutional
Shares
sold
..........................................
15,390
$
132,950
184
$
1,599
Shares
issued
in
reinvestment
of
distributions
.....................
201
1,720
3
26
15,591
$
134,670
187
$
1,625
Investor
A
Shares
sold
..........................................
1,631
$
14,027
283
$
2,587
Shares
issued
in
reinvestment
of
distributions
.....................
30
255
6
51
1,661
$
14,282
289
$
2,638
17,252
$
148,952
476
$
4,263
d
Year
Ended
09/30/23
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
..........................................
5,438
$
49,487
10,001
$
100,010
Shares
issued
in
reinvestment
of
distributions
.....................
3
26
—
—
Shares
redeemed
......................................
—
—
(1)
(10)
5,441
$
49,513
10,000
$
100,000
Investor
A
Shares
sold
..........................................
30
$
271
21,953
$
216,401
Shares
issued
in
reinvestment
of
distributions
.....................
91
835
62
594
Shares
redeemed
......................................
(212)
(1,927)
(10,111)
(96,014)
(91)
$
(821)
11,904
$
120,981
Class
K
Shares
sold
..........................................
329
$
3,000
4,980,008
$
49,800,077
Shares
issued
in
reinvestment
of
distributions
.....................
7
63
—
—
Shares
redeemed
......................................
—
—
(8)
(116)
336
$
3,063
4,980,000
$
49,799,961
5,686
$
51,755
5,001,904
$
50,020,942
Notes
to
Financial
Statements
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
82
(a)
Commencement
of
operations.
As
of
September
30,
2023,
shares
owned
by
BlackRock
Financial
Management,
Inc.,
an
affiliate
of
the
Funds,
were
as
follows:
12.
SUBSEQUENT
EVENTS
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Funds
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
d
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
Sustainable
Total
Return
Institutional
Shares
sold
..........................................
12,913
$
103,566
10,001
$
100,010
Shares
issued
in
reinvestment
of
distributions
.....................
8
60
—
—
Shares
redeemed
......................................
—
—
(1)
(10)
12,921
$
103,626
10,000
$
100,000
Investor
A
Shares
sold
..........................................
5,978
$
50,290
11,178
$
111,490
Shares
issued
in
reinvestment
of
distributions
.....................
151
1,251
15
133
Shares
redeemed
......................................
(1,118)
(9,134)
(1)
(10)
5,011
$
42,407
11,192
$
111,613
Class
K
Shares
sold
..........................................
—
$
—
4,980,001
$
49,800,011
Shares
redeemed
......................................
—
—
(1)
(10)
—
$
—
4,980,000
$
49,800,001
17,932
$
146,033
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
Report
of
Independent
Registered
Public
Accounting
Firm
83
Report
of
Independent
Registered
Public
Accounting
Firm
To
the
Shareholders
of
BlackRock
Sustainable
High
Yield
Bond
Fund,
BlackRock
Sustainable
Low
Duration
Bond
Fund,
and
BlackRock
Sustainable
Total
Return
Fund
and
the
Board
of
Trustees/Directors
of
BlackRock
Funds
V
and
BlackRock
Bond
Fund,
Inc.:
Opinion
on
the
Financial
Statements
and
Financial
Highlights
We
have
audited
the
accompanying
statements
of
assets
and
liabilities
of
BlackRock
Sustainable
High
Yield
Bond
Fund
and
BlackRock
Sustainable
Low
Duration
Bond
Fund
of
BlackRock
Funds
V,
and
Blackrock
Sustainable
Total
Return
Fund
of
BlackRock
Bond
Fund,
Inc.
(the
“Funds”),
including
the
schedules
of
investments,
as
of
September
30,
2023,
the
related
statements
of
operations
for
the
year
then
ended,
the
statements
of
changes
in
net
assets
and
the
financial
highlights
for
the
periods
indicated
in
the
table
below,
and
the
related
notes.
In
our
opinion,
the
financial
statements
and
financial
highlights
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Funds
as
of
September
30,
2023,
and
the
results
of
their
operations
for
the
year
then
ended,
the
changes
in
their
net
assets
and
the
financial
highlights
for
the
periods
indicated
in
the
table
below,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
and
financial
highlights
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
and
financial
highlights
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
and
financial
highlights
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
The
Funds
are
not
required
to
have,
nor
were
we
engaged
to
perform,
an
audit
of
their
internal
control
over
financial
reporting.
As
part
of
our
audits
we
are
required
to
obtain
an
understanding
of
internal
control
over
financial
reporting
but
not
for
the
purpose
of
expressing
an
opinion
on
the
effectiveness
of
the
Funds’
internal
control
over
financial
reporting.
Accordingly,
we
express
no
such
opinion.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements
and
financial
highlights,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements
and
financial
highlights.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements
and
financial
highlights.
Our
procedures
included
confirmation
of
securities
owned
as
of
September
30,
2023,
by
correspondence
with
custodians
or
counterparties;
when
replies
were
not
received,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
Deloitte
&
Touche
LLP
Boston,
Massachusetts
November
20,
2023
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
1992.
Fund
Statements
of
Changes
in
Net
Assets
Financial
Highlights
BlackRock
Sustainable
High
Yield
Bond
Fund
For
each
of
the
two
years
in
the
period
ended
September
30,
2023
For
each
of
the
two
years
in
the
period
ended
September
30,
2023
and
for
the
period
from
July
22,
2021
(commencement
of
operations)
through
September
30,
2021
BlackRock
Sustainable
Low
Duration
Bond
Fund
and
BlackRock
Sustainable
Total
Return
Fund
For
the
year
ended
September
30,
2023
and
for
the
period
from
October
18,
2021
(commencement
of
operations)
through
September
30,
2022
Important
Tax
Information
(unaudited)
2023
BlackRock
Annual
Report
to
Shareholders
84
The
Funds
hereby
designate
the
following
amounts,
or
maximum
amounts
allowable
by
law,
of
distributions
from
direct
federal
obligation
interest
for
the
fiscal
year
ended
September
30,
2023:
The
law
varies
in
each
state
as
to
whether
and
what
percent
of
ordinary
income
dividends
attributable
to
federal
obligations
is
exempt
from
state
income
tax.
Shareholders
are
advised
to
check
their
tax
advisers
to
determine
if
any
portion
of
the
dividends
received
is
exempt
from
state
income
tax.
The
Funds
hereby
designate
the
following
amounts,
or
maximum
amounts
allowable by
law,
as
interest
income
eligible
to
be
treated
as
a
Section
163(j)
interest
dividend
for
the
fiscal
year
ended
September
30,
2023:
The
Funds
hereby
designate
the
following
amounts,
or
maximum
amounts
allowable
by
law,
as
interest-related
dividends
eligible
for
exemption
from
U.S.
withholding
tax
for
nonresident
aliens
and
foreign
corporations
for
the
fiscal
year
ended
September
30,
2023:
Fund
Name
Federal
Obligation
Interest
Sustainable
High
Yield
Bond
...........................................................................................
$
11,993
Sustainable
Low
Duration
Bond
.........................................................................................
450,046
Sustainable
Total
Return
..............................................................................................
253,856
Fund
Name
Interest
Dividends
Sustainable
High
Yield
Bond
...........................................................................................
$
2,481,676
Sustainable
Low
Duration
Bond
.........................................................................................
1,648,698
Sustainable
Total
Return
..............................................................................................
1,400,106
Fund
Name
Interest-Related
Dividends
Sustainable
High
Yield
Bond
...........................................................................................
$
2,006,091
Sustainable
Low
Duration
Bond
.........................................................................................
1,331,511
Sustainable
Total
Return
..............................................................................................
1,229,132
Disclosure
of
Investment
Advisory
Agreements
and
Sub-Advisory
Agreements
85
Disclosure
of
Investment
Advisory
Agreements
and
Sub-Advisory
Agreements
The
Board
of
Directors/Trustees
(the
“Board,”
the
members
of
which
are
referred
to
as
“Board
Members”),
as
applicable,
of
BlackRock
Funds
V
(the
“Trust”)
and
BlackRock
Bond
Fund,
Inc.
(the
“Corporation”
and
together
with
the
Trust,
the
“Registrants”)
met
on
May
4,
2023
(the
“May
Meeting”)
and
June
1-2,
2023
(the
“June
Meeting”)
to
consider
the
approval
to
continue
the
investment
advisory
agreements
(the
“Advisory
Agreements”)
between
(1)
the
Trust,
on
behalf
of
BlackRock
Sustainable
High
Yield
Bond
Fund
(the
“Sustainable
High
Yield
Bond
Fund”)
and
BlackRock
Sustainable
Low
Duration
Bond
Fund
(the
“Sustainable
Low
Duration
Bond
Fund”),
and
(2)
the
Corporation,
on
behalf
of
BlackRock
Sustainable
Total
Return
Fund
(the
“Sustainable
Total
Return
Fund”
and
collectively
with
Sustainable
High
Yield
Bond
Fund
and
Sustainable
Low
Duration
Bond
Fund,
the
“Funds”
and
each,
a
“Fund,”),
and
BlackRock
Advisors,
LLC
(the
“Manager”),
each
Fund’s
investment
adviser.
The
Board
also
considered
the
approval
to
continue
the
sub-advisory
agreements
(the
“Sub-Advisory
Agreements”)
between
(1)
the
Manager
and
BlackRock
International
Limited
(“BIL”),
with
respect
to
each
Fund
and
(2)
BlackRock
(Singapore)
Limited
(“BRS”
and
together
with
BIL,
the
“Sub-Advisors”),
with
respect
to
Sustainable
Low
Duration
Bond
Fund
and
Sustainable
Total
Return
Fund.
The
Manager
and
the
Sub-Advisors
are
referred
to
herein
as
“BlackRock.”
The
Advisory
Agreements
and
the
Sub-Advisory
Agreements
are
referred
to
herein
as
the
“Agreements.”
The
Approval
Process
Consistent
with
the
requirements
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
the
Board
considers
the
approval
of
the
continuation
of
the
Agreements
for
each
Fund
on
an
annual
basis.
The
Board
members
who
are
not
“interested
persons”
of
the
Registrants,
as
defined
in
the
1940
Act,
are
considered
independent
Board
members
(the
“Independent
Board
Members”).
The
Board’s
consideration
entailed
a
year-long
deliberative
process
during
which
the
Board
and
its
committees
assessed
BlackRock’s
various
services
to
each
Fund,
including
through
the
review
of
written
materials
and
oral
presentations,
and
the
review
of
additional
information
provided
in
response
to
requests
from
the
Independent
Board
Members.
The
Board
had
four
quarterly
meetings
per
year,
each
of
which
extended
over
a
two-day
period,
as
well
as
additional
ad
hoc
meetings
and
executive
sessions
throughout
the
year,
as
needed.
The
committees
of
the
Board
similarly
met
throughout
the
year.
The
Board
also
had
an
additional
one-day
meeting
to
consider
specific
information
regarding
the
renewal
of
the
Agreements.
In
considering
the
renewal
of
the
Agreements,
the
Board
assessed,
among
other
things,
the
nature,
extent
and
quality
of
the
services
provided
to
each
Fund
by
BlackRock,
BlackRock’s
personnel
and
affiliates,
including
(as
applicable):
investment
management
services;
accounting
oversight;
administrative
and
shareholder
services;
oversight
of
each
Fund’s
service
providers;
risk
management
and
oversight;
and
legal,
regulatory
and
compliance
services.
Throughout
the
year,
including
during
the
contract
renewal
process,
the
Independent
Board
Members
were
advised
by
independent
legal
counsel,
and
met
with
independent
legal
counsel
in
various
executive
sessions
outside
of
the
presence
of
BlackRock’s
management.
During
the
year,
the
Board,
acting
directly
and
through
its
committees,
considered
information
that
was
relevant
to
its
annual
consideration
of
the
renewal
of
the
Agreements,
including
the
services
and
support
provided
by
BlackRock
to
each
Fund
and
its
shareholders.
BlackRock
also
furnished
additional
information
to
the
Board
in
response
to
specific
questions
from
the
Board.
Among
the
matters
the
Board
considered
were:
(a)
investment
performance
for
one-year,
three-year,
five-year,
and/or
since
inception
periods,
as
applicable,
against
peer
funds,
relevant
benchmarks,
and
other
performance
metrics,
as
applicable,
as
well
as
BlackRock
senior
management’s
and
portfolio
managers’
analyses
of
the
reasons
for
any
outperformance
or
underperformance
relative
to
its
peers,
benchmarks,
and
other
performance
metrics,
as
applicable;
(b)
fees,
including
advisory,
administration,
if
applicable,
and
other
amounts
paid
to
BlackRock
and
its
affiliates
by
each
Fund
for
services;
(c)
Fund
operating
expenses
and
how
BlackRock
allocates
expenses
to
each
Fund;
(d)
the
resources
devoted
to,
risk
oversight
of,
and
compliance
reports
relating
to,
implementation
of
each
Fund’s
investment
objective,
policies
and
restrictions,
and
meeting
regulatory
requirements;
(e)
BlackRock’s
and
each
Fund’s
adherence
to
applicable
compliance
policies
and
procedures;
(f)
the
nature,
character
and
scope
of
non-investment
management
services
provided
by
BlackRock
and
its
affiliates
and
the
estimated
cost
of
such
services,
as
applicable;
(g)
BlackRock’s
and
other
service
providers’
internal
controls
and
risk
and
compliance
oversight
mechanisms;
(h)
BlackRock’s
implementation
of
the
proxy
voting
policies
approved
by
the
Board;
(i)
execution
quality
of
portfolio
transactions;
(j)
BlackRock’s
implementation
of
each
Fund’s
valuation
and
liquidity
procedures;
(k)
an
analysis
of
management
fees
paid
to
BlackRock
for
products
with
similar
investment
mandates
across
the
open-end
fund,
exchange-traded
fund
(“ETF”),
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable,
and
the
similarities
and
differences
between
these
products
and
the
services
provided
as
compared
to
each
Fund;
(l)
BlackRock’s
compensation
methodology
for
its
investment
professionals
and
the
incentives
and
accountability
it
creates,
along
with
investment
professionals’
investments
in
the
fund(s)
they
manage;
and
(m)
periodic
updates
on
BlackRock’s
business.
Prior
to
and
in
preparation
for
the
May
Meeting,
the
Board
received
and
reviewed
materials
specifically
relating
to
the
renewal
of
the
Agreements.
The
Independent
Board
Members
are
continuously
engaged
in
a
process
with
their
independent
legal
counsel
and
BlackRock
to
review
the
nature
and
scope
of
the
information
provided
to
the
Board
to
better
assist
its
deliberations.
The
materials
provided
in
connection
with
the
May
Meeting
included,
among
other
things:
(a)
information
independently
compiled
and
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
based
on
either
a
Lipper
classification
or
Morningstar
category,
regarding
each
Fund’s
fees
and
expenses
as
compared
with
a
peer
group
of
funds
as
determined
by
Broadridge
(“Expense
Peers”)
and
the
investment
performance
of
each
Fund
as
compared
with
a
peer
group
of
funds
(“Performance
Peers”);
(b)
information
on
the
composition
of
the
Expense
Peers
and
Performance
Peers
and
a
description
of
Broadridge’s
methodology;
(c)
information
on
the
estimated
profits
realized
by
BlackRock
and
its
affiliates
pursuant
to
the
Agreements
and
a
discussion
of
fall-out
benefits
to
BlackRock
and
its
affiliates;
(d)
a
general
analysis
provided
by
BlackRock
concerning
investment
management
fees
received
in
connection
with
other
types
of
investment
products,
such
as
institutional
accounts,
sub-advised
mutual
funds,
ETFs,
closed-end
funds,
open-end
funds,
and
separately
managed
accounts,
under
similar
investment
mandates,
as
well
as
the
performance
of
such
other
products,
as
applicable;
(e)
a
review
of
non-management
fees;
(f)
the
existence,
impact
and
sharing
of
potential
economies
of
scale,
if
any,
with
each
Fund;
(g)
a
summary
of
aggregate
amounts
paid
by
each
Fund
to
BlackRock;
(h)
sales
and
redemption
data
regarding
each
Fund’s
shares;
and
(i)
various
additional
information
requested
by
the
Board
as
appropriate
regarding
BlackRock’s
and
each
Fund’s
operations.
At
the
May
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
Agreements
and
the
Independent
Board
Members
presented
BlackRock
with
questions
and
requests
for
additional
information.
BlackRock
responded
to
these
questions
and
requests
with
additional
written
information
in
advance
of
the
June
Meeting.
At
the
June
Meeting,
the
Board
concluded
its
assessment
of,
among
other
things:
(a)
the
nature,
extent
and
quality
of
the
services
provided
by
BlackRock;
(b)
the
investment
performance
of
each
Fund
as
compared
to
its
Performance
Peers
and
to
other
metrics,
as
applicable;
(c)
the
advisory
fee
and
the
estimated
cost
of
the
services
and
estimated
profits
realized
by
BlackRock
and
its
affiliates
from
their
relationship
with
each
Fund;
(d)
each
Fund’s
fees
expenses
compared
to
its
Expense
Peers;
(e)
the
existence
and
sharing
of
potential
economies
of
scale;
(f)
any
fall-out
benefits
to
BlackRock
and
its
affiliates
as
a
result
of
BlackRock’s
relationship
with
each
Fund;
and
(g)
other
factors
deemed
relevant
by
the
Board
Members.
The
Board
also
considered
other
matters
it
deemed
important
to
the
approval
process,
such
as
other
payments
made
to
BlackRock
or
its
affiliates
relating
to
securities
lending
and
cash
management,
and
BlackRock’s
services
related
to
the
valuation
and
pricing
of
Fund
portfolio
holdings.
The
Board
noted
the
willingness
of
Disclosure
of
Investment
Advisory
Agreements
and
Sub-Advisory
Agreements
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
86
BlackRock’s
personnel
to
engage
in
open,
candid
discussions
with
the
Board.
The
Board
Members
evaluated
the
information
available
to
them
on
a
fund-by-fund
basis.
The
following
paragraphs
provide
more
information
about
some
of
the
primary
factors
that
were
relevant
to
the
Board’s
decision.
The
Board
Members
did
not
identify
any
particular
information,
or
any
single
factor
as
determinative,
and
each
Board
Member
may
have
attributed
different
weights
to
the
various
items
and
factors
considered.
A.
Nature,
Extent
and
Quality
of
the
Services
Provided
by
BlackRock
The
Board,
including
the
Independent
Board
Members,
reviewed
the
nature,
extent
and
quality
of
services
provided
by
BlackRock,
including
the
investment
advisory
services,
and
the
resulting
performance
of
each
Fund.
Throughout
the
year,
the
Board
compared
Fund
performance
to
the
performance
of
a
comparable
group
of
mutual
funds,
relevant
benchmarks,
and
performance
metrics,
as
applicable.
The
Board
met
with
BlackRock’s
senior
management
personnel
responsible
for
investment
activities,
including
the
senior
investment
officers.
The
Board
also
reviewed
the
materials
provided
by
each
Fund’s
portfolio
management
team
discussing
each
Fund’s
performance,
investment
strategies
and
outlook.
The
Board
considered,
among
other
factors,
with
respect
to
BlackRock:
the
experience
of
investment
personnel
generally
and
each
Fund’s
portfolio
management
team;
research
capabilities;
investments
by
portfolio
managers
in
the
funds
they
manage;
portfolio
trading
capabilities;
use
of
technology;
commitment
to
compliance;
credit
analysis
capabilities;
risk
analysis
and
oversight
capabilities;
and
the
approach
to
training
and
retaining
portfolio
managers
and
other
research,
advisory
and
management
personnel.
The
Board
also
considered
BlackRock’s
overall
risk
management
program,
including
the
continued
efforts
of
BlackRock
and
its
affiliates
to
address
cybersecurity
risks
and
the
role
of
BlackRock’s
Risk
&
Quantitative
Analysis
Group.
The
Board
engaged
in
a
review
of
BlackRock’s
compensation
structure
with
respect
to
each
Fund’s
portfolio
management
team
and
BlackRock’s
ability
to
attract
and
retain
high-quality
talent
and
create
performance
incentives.
In
addition
to
investment
advisory
services,
the
Board
considered
the
nature
and
quality
of
the
administrative
and
other
non-investment
advisory
services
provided
to
each
Fund.
BlackRock
and
its
affiliates
provide
each
Fund
with
certain
administrative,
shareholder
and
other
services
(in
addition
to
any
such
services
provided
to
each
Fund
by
third
parties)
and
officers
and
other
personnel
as
are
necessary
for
the
operations
of
each
Fund.
In
particular,
BlackRock
and
its
affiliates
provide
each
Fund
with
administrative
services
including,
among
others:
(i)
responsibility
for
disclosure
documents,
such
as
the
prospectus,
the
summary
prospectus
(as
applicable),
the
statement
of
additional
information
and
periodic
shareholder
reports;
(ii)
oversight
of
daily
accounting
and
pricing;
(iii)
responsibility
for
periodic
filings
with
regulators;
(iv)
overseeing
and
coordinating
the
activities
of
third-party
service
providers
including,
among
others,
each
Fund’s
custodian,
fund
accountant,
transfer
agent,
and
auditor;
(v)
organizing
Board
meetings
and
preparing
the
materials
for
such
Board
meetings;
(vi)
providing
legal
and
compliance
support;
(vii)
furnishing
analytical
and
other
support
to
assist
the
Board
in
its
consideration
of
strategic
issues
such
as
the
merger,
consolidation
or
repurposing
of
certain
open-end
funds;
and
(viii)
performing
or
managing
administrative
functions
necessary
for
the
operation
of
each
Fund,
such
as
tax
reporting,
expense
management,
fulfilling
regulatory
filing
requirements,
overseeing
each
Fund’s
distribution
partners,
and
shareholder
call
center
and
other
services.
The
Board
reviewed
the
structure
and
duties
of
BlackRock’s
fund
administration,
shareholder
services,
and
legal
and
compliance
departments
and
considered
BlackRock’s
policies
and
procedures
for
assuring
compliance
with
applicable
laws
and
regulations.
The
Board
considered
the
operation
of
BlackRock’s
business
continuity
plans.
The
Board
noted
that
the
engagement
of
the
Sub-Advisors
with
respect
to
the
Funds,
as
applicable,
facilitates
the
provision
of
investment
advice
and
trading
by
investment
personnel
out
of
non-U.S.
jurisdictions.
The
Board
considered
that
this
arrangement
provides
additional
flexibility
to
the
portfolio
management
team,
which
may
benefit
each
Fund
and
its
shareholders.
B.
The
Investment
Performance
of
each
Fund
and
BlackRock
The
Board,
including
the
Independent
Board
Members,
reviewed
and
considered
the
performance
history
of
each
Fund
throughout
the
year
and
at
the
May
Meeting.
In
preparation
for
the
May
Meeting,
the
Board
was
provided
with
reports
independently
prepared
by
Broadridge,
which
included
an
analysis
of
each
Fund’s
performance
as
of
December
31,
2022,
as
compared
to
its
Performance
Peers.
Broadridge
ranks
funds
in
quartiles,
ranging
from
first
to
fourth,
where
first
is
the
most
desirable
quartile
position
and
fourth
is
the
least
desirable.
In
connection
with
its
review,
the
Board
received
and
reviewed
information
regarding
the
investment
performance
of
each
Fund
as
compared
to
its
Performance
Peers
and
the
respective
Morningstar
Category
(“Morningstar
Category”).
The
Board
and
its
Performance
Oversight
Committee
regularly
review
and
meet
with
Fund
management
to
discuss
the
performance
of
each
Fund
throughout
the
year.
In
evaluating
performance,
the
Board
focused
particular
attention
on
funds
with
less
favorable
performance
records.
The
Board
also
noted
that
while
it
found
the
data
provided
by
Broadridge
generally
useful,
it
recognized
the
limitations
of
such
data,
including
in
particular,
that
notable
differences
may
exist
between
a
fund
and
its
Performance
Peers
(for
example,
the
investment
objectives
and
strategies).
Further,
the
Board
recognized
that
the
performance
data
reflects
a
snapshot
of
a
period
as
of
a
particular
date
and
that
selecting
a
different
performance
period
could
produce
significantly
different
results.
The
Board
also
acknowledged
that
long-term
performance
could
be
impacted
by
even
one
period
of
significant
outperformance
or
underperformance,
and
that
a
single
investment
theme
could
have
the
ability
to
disproportionately
affect
long-term
performance.
The
Board
noted
that
for
each
of
the
one-year
and
since
inception
periods
reported,
Sustainable
High
Yield
Bond
Fund
ranked
in
the
third
quartile
against
its
Morningstar
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Category
is
an
appropriate
performance
metric
for
Sustainable
High
Yield
Bond
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
and
BlackRock
reviewed
Sustainable
High
Yield
Bond
Fund’s
underperformance
relative
to
its
Morningstar
Category
during
the
applicable
periods.
The
Board
noted
that
for
each
of
the
one-year
and
since
inception
periods
reported,
Sustainable
Low
Duration
Bond
Fund
ranked
in
the
second
quartile
against
its
Morningstar
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Category
is
an
appropriate
performance
metric
for
Sustainable
Low
Duration
Bond
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
noted
that
for
each
of
the
one-year
and
since
inception
periods
reported,
Sustainable
Total
Return
Fund
ranked
in
the
fourth
quartile
against
its
Morningstar
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Category
is
an
appropriate
performance
metric
for
Sustainable
Total
Return
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
and
BlackRock
reviewed
Sustainable
Total
Return
Fund’s
underperformance
relative
to
its
Morningstar
Category
during
the
applicable
periods.
Disclosure
of
Investment
Advisory
Agreements
and
Sub-Advisory
Agreements
(continued)
87
Disclosure
of
Investment
Advisory
Agreements
and
Sub-Advisory
Agreements
C.
Consideration
of
the
Advisory/Management
Fees
and
the
Estimated
Cost
of
the
Services
and
Estimated
Profits
Realized
by
BlackRock
and
its
Affiliates
from
their
Relationship
with
each
Fund
The
Board,
including
the
Independent
Board
Members,
reviewed
each
Fund’s
contractual
management
fee
rate
compared
with
those
of
its
Expense
Peers.
The
contractual
management
fee
rate
represents
a
combination
of
the
advisory
fee
and
any
administrative
fees,
before
taking
into
account
any
reimbursements
or
fee
waivers.
The
Board
also
compared
each
Fund’s
total
expense
ratio,
as
well
as
its
actual
management
fee
rate,
to
those
of
its
Expense
Peers.
The
total
expense
ratio
represents
a
fund’s
total
net
operating
expenses,
including
any
12b-1
or
non-12b-1
service
fees.
The
total
expense
ratio
gives
effect
to
any
expense
reimbursements
or
fee
waivers,
and
the
actual
management
fee
rate
gives
effect
to
any
management
fee
reimbursements
or
waivers.
The
Board
considered
that
the
fee
and
expense
information
in
the
Broadridge
report
for
each
Fund
reflected
information
for
a
specific
period
and
that
historical
asset
levels
and
expenses
may
differ
from
current
levels,
particularly
in
a
period
of
market
volatility.
The
Board
considered
the
services
provided
and
the
fees
charged
by
BlackRock
and
its
affiliates
to
other
types
of
clients
with
similar
investment
mandates,
as
applicable,
including
institutional
accounts
and
sub-advised
mutual
funds
(including
mutual
funds
sponsored
by
third
parties).
The
Board
received
and
reviewed
statements
relating
to
BlackRock’s
financial
condition.
The
Board
reviewed
BlackRock’s
profitability
methodology
and
was
also
provided
with
an
estimated
profitability
analysis
that
detailed
the
revenues
earned
and
the
expenses
incurred
by
BlackRock
for
services
provided
to
each
Fund.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
each
Fund
and
other
funds
the
Board
currently
oversees
for
the
year
ended
December
31,
2022
compared
to
available
aggregate
estimated
profitability
data
provided
for
the
prior
two
years.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
certain
other
U.S.
fund
complexes
managed
by
the
Manager
and/or
its
affiliates.
The
Board
reviewed
BlackRock’s
assumptions
and
methodology
of
allocating
expenses
in
the
estimated
profitability
analysis,
noting
the
inherent
limitations
in
allocating
costs
among
various
advisory
products.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors
including,
among
other
things,
fee
waivers
and
expense
reimbursements
by
the
Manager,
the
types
of
funds
managed,
precision
of
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
the
individual
fund
level
is
difficult.
The
Board
noted
that,
in
general,
individual
fund
or
product
line
profitability
of
other
advisors
is
not
publicly
available.
The
Board
reviewed
BlackRock’s
overall
operating
margin,
in
general,
compared
to
that
of
certain
other
publicly
traded
asset
management
firms.
The
Board
considered
the
differences
between
BlackRock
and
these
other
firms,
including
the
contribution
of
technology
at
BlackRock,
BlackRock’s
expense
management,
and
the
relative
product
mix.
The
Board
considered
whether
BlackRock
has
the
financial
resources
necessary
to
attract
and
retain
high
quality
investment
management
personnel
to
perform
its
obligations
under
the
Agreements
and
to
continue
to
provide
the
high
quality
of
services
that
is
expected
by
the
Board.
The
Board
further
considered
factors
including
but
not
limited
to
BlackRock’s
commitment
of
time
and
resources,
assumption
of
risk,
and
liability
profile
in
servicing
each
Fund,
including
in
contrast
to
what
is
required
of
BlackRock
with
respect
to
other
products
with
similar
investment
mandates
across
the
open-end
fund,
ETF,
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable.
The
Board
noted
that
Sustainable
High
Yield
Bond
Fund’s
contractual
management
fee
rate
ranked
in
the
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
Sustainable
High
Yield
Bond
Fund’s
Expense
Peers.
The
Board
also
noted
that
Sustainable
High
Yield
Bond
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
Sustainable
High
Yield
Bond
Fund
increases
above
certain
contractually
specified
levels.
The
Board
additionally
noted
that
the
breakpoints
can,
conversely,
adjust
the
advisory
fee
rate
upward
as
the
size
of
Sustainable
High
Yield
Bond
Fund
decreases
below
certain
contractually
specified
levels.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
Sustainable
High
Yield
Bond
Fund’s
total
expenses
as
a
percentage
of
Sustainable
High
Yield
Bond
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
The
Board
noted
that
Sustainable
Low
Duration
Bond
Fund’s
contractual
management
fee
rate
ranked
in
the
third
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
first
and
second
quartiles,
respectively,
relative
to
Sustainable
Low
Duration
Bond
Fund’s
Expense
Peers.
The
Board
also
noted
that
Sustainable
Low
Duration
Bond
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
Sustainable
Low
Duration
Bond
Fund
increases
above
certain
contractually
specified
levels.
The
Board
additionally
noted
that
the
breakpoints
can,
conversely,
adjust
the
advisory
fee
rate
upward
as
the
size
of
Sustainable
Low
Duration
Bond
Fund
decreases
below
certain
contractually
specified
levels.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
Sustainable
Low
Duration
Bond
Fund’s
total
expenses
as
a
percentage
of
Sustainable
Low
Duration
Bond
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
The
Board
noted
that
Sustainable
Total
Return
Fund’s
contractual
management
fee
rate
ranked
in
the
fourth
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
Sustainable
Total
Return
Fund’s
Expense
Peers.
The
Board
also
noted
that
Sustainable
Total
Return
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
Sustainable
Total
Return
Fund
increases
above
certain
contractually
specified
levels.
The
Board
additionally
noted
that
the
breakpoints
can,
conversely,
adjust
the
advisory
fee
rate
upward
as
the
size
of
Sustainable
Total
Return
Fund
decreases
below
certain
contractually
specified
levels.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
Sustainable
Total
Return
Fund’s
total
expenses
as
a
percentage
of
Sustainable
Total
Return
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
D.
Economies
of
Scale
The
Board,
including
the
Independent
Board
Members,
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
each
Fund
increase,
including
the
existence
of
fee
waivers
and/or
expense
caps,
as
applicable,
noting
that
any
contractual
fee
waivers
and
contractual
expense
caps
had
been
approved
by
the
Board.
In
its
consideration,
the
Board
further
considered
the
continuation
and/or
implementation
of
fee
waivers
and/or
expense
caps,
as
applicable.
The
Board
also
considered
the
extent
to
which
each
Fund
benefits
from
such
economies
of
scale
in
a
variety
of
ways,
and
whether
there
should
be
changes
in
the
advisory
fee
rate
or
breakpoint
structure
in
order
to
enable
each
Fund
to
more
fully
participate
in
these
economies
of
scale.
The
Board
considered
each
Fund’s
asset
levels
and
whether
the
current
fee
schedule
was
appropriate.
E.
Other
Factors
Deemed
Relevant
by
the
Board
Members
The
Board,
including
the
Independent
Board
Members,
also
took
into
account
other
ancillary
or
“fall-out”
benefits
that
BlackRock
or
its
affiliates
may
derive
from
BlackRock’s
respective
relationships
with
each
Fund,
both
tangible
and
intangible,
such
as
BlackRock’s
ability
to
leverage
its
investment
professionals
who
manage
other
Disclosure
of
Investment
Advisory
Agreements
and
Sub-Advisory
Agreements
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
88
portfolios
and
its
risk
management
personnel,
an
increase
in
BlackRock’s
profile
in
the
investment
advisory
community,
and
the
engagement
of
BlackRock’s
affiliates
as
service
providers
to
each
Fund,
including
for
administrative,
distribution,
securities
lending,
and
cash
management
services.
With
respect
to
securities
lending,
during
the
year
the
Board
also
considered
information
provided
by
independent
third-party
consultants
related
to
the
performance
of
each
BlackRock
affiliate
as
securities
lending
agent.
The
Board
also
considered
BlackRock’s
overall
operations
and
its
efforts
to
expand
the
scale
of,
and
improve
the
quality
of,
its
operations.
The
Board
also
noted
that,
subject
to
applicable
law,
BlackRock
may
use
and
benefit
from
third-party
research
obtained
by
soft
dollars
generated
by
certain
registered
fund
transactions
to
assist
in
managing
all
or
a
number
of
its
other
client
accounts.
In
connection
with
its
consideration
of
the
Agreements,
the
Board
also
received
information
regarding
BlackRock’s
brokerage
and
soft
dollar
practices.
The
Board
received
reports
from
BlackRock
which
included
information
on
brokerage
commissions
and
trade
execution
practices
throughout
the
year.
The
Board
noted
the
competitive
nature
of
the
open-end
fund
marketplace,
and
that
shareholders
are
able
to
redeem
their
Fund
shares
if
they
believe
that
each
Fund’s
fees
and
expenses
are
too
high
or
if
they
are
dissatisfied
with
the
performance
of
each
Fund.
Conclusion
At
the
June
Meeting,
in
a
continuation
of
the
discussions
that
occurred
during
the
May
Meeting,
and
as
a
culmination
of
the
Board’s
year-long
deliberative
process,
the
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
the
Advisory
Agreements
between
the
Manager
and
the
Registrants,
on
behalf
of
each
Fund,
as
applicable,
for
a
one-year
term
ending
June
30,
2024,
and
the
Sub-Advisory
Agreements
between
(1)
the
Manager
and
BIL,
with
respect
to
each
Fund,
and
(2)
the
Manager
and
BRS,
with
respect
to
Sustainable
Low
Duration
Bond
Fund
and
Sustainable
Total
Return
Fund,
for
a
one-year
term
ending
June
30,
2024.
Based
upon
its
evaluation
of
all
of
the
aforementioned
factors
in
their
totality,
as
well
as
other
information,
the
Board,
including
the
Independent
Board
Members,
was
satisfied
that
the
terms
of
the
Agreements
were
fair
and
reasonable
and
in
the
best
interest
of
each
Fund
and
its
shareholders.
In
arriving
at
its
decision
to
approve
the
Agreements,
the
Board
did
not
identify
any
single
factor
or
group
of
factors
as
all-important
or
controlling,
but
considered
all
factors
together,
and
different
Board
Members
may
have
attributed
different
weights
to
the
various
factors
considered.
The
Independent
Board
Members
were
advised
by
independent
legal
counsel
throughout
the
deliberative
process.
Director
and
Officer
Information
89
Director
and
Officer
Information
Independent
Trustees
(a)
Name
Year
of
Birth
(b)
Position(s)
Held
(Length
of
Service)
(c)
Principal
Occupation(s)
During
Past
5
Years
Number
of
BlackRock-Advised
Registered
Investment
Companies
(“RICs”)
Consisting
of
Investment
Portfolios
(“Portfolios”)
Overseen
Public
Company
and
Other
Investment
Company
Directorships
Held
During
Past
5
Years
R.
Glenn
Hubbard
1958
Chair
of
the
Board
(Since
2022)
Trustee
(Since
2019)
Dean,
Columbia
Business
School
from
2004
to
2019;
Faculty
member,
Columbia
Business
School
since
1988.
70
RICs
consisting
of
104
Portfolios
ADP
(data
and
information
services)
from
2004
to
2020;
Metropolitan
Life
Insurance
Company
(insurance);
TotalEnergies
SE
(multi-energy)
W.
Carl
Kester
(d)
1951
Vice
Chair
of
the
Board
(Since
2022)
Trustee
(Since
2019)
Baker
Foundation
Professor
and
George
Fisher
Baker
Jr.
Professor
of
Business
Administration,
Emeritus,
Harvard
Business
School
since
2022;
George
Fisher
Baker
Jr.
Professor
of
Business
Administration,
Harvard
Business
School
from
2008
to
2022;
Deputy
Dean
for
Academic
Affairs
from
2006
to
2010;
Chairman
of
the
Finance
Unit,
from
2005
to
2006;
Senior
Associate
Dean
and
Chairman
of
the
MBA
Program
from
1999
to
2005;
Member
of
the
faculty
of
Harvard
Business
School
since
1981.
72
RICs
consisting
of
106
Portfolios
None
Cynthia
L.
Egan
1955
Trustee
(Since
2019)
Advisor,
U.S.
Department
of
the
Treasury
from
2014
to
2015;
President,
Retirement
Plan
Services,
for
T.
Rowe
Price
Group,
Inc.
from
2007
to
2012;
executive
positions
within
Fidelity
Investments
from
1989
to
2007.
70
RICs
consisting
of
104
Portfolios
Unum
(insurance);
The
Hanover
Insurance
Group
(Board
Chair);
Huntsman
Corporation
(Lead
Independent
Director
and
non
Executive
Vice
Chair
of
the
Board)
(chemical
products)
Frank
J.
Fabozzi
(d)
1948
Trustee
(Since
2019)
Editor
of
The
Journal
of
Portfolio
Management
since
1986;
Professor
of
Finance,
EDHEC
Business
School
(France)
from
2011
to
2022;
Professor
of
Practice,
Johns
Hopkins
University
since
2021;
Professor
in
the
Practice
of
Finance,
Yale
University
School
of
Management
from
1994
to
2011
and
currently
a
Teaching
Fellow
in
Yale's
Executive
Programs;
Visiting
Professor,
Rutgers
University
for
the
Spring
2019
semester;
Visiting
Professor,
New
York
University
for
the
2019
academic
year;
Adjunct
Professor
of
Finance,
Carnegie
Mellon
University
in
fall
2020
semester.
72
RICs
consisting
of
106
Portfolios
None
Lorenzo
A.
Flores
1964
Trustee
(Since
2021)
Vice
Chairman,
Kioxia,
Inc.
since
2019;
Chief
Financial
Officer,
Xilinx,
Inc.
from
2016
to
2019;
Corporate
Controller,
Xilinx,
Inc.
from
2008
to
2016.
70
RICs
consisting
of
104
Portfolios
None
Stayce
D.
Harris
1959
Trustee
(Since
2021)
Lieutenant
General,
Inspector
General
of
the
United
States
Air
Force
from
2017
to
2019;
Lieutenant
General,
Assistant
Vice
Chief
of
Staff
and
Director,
Air
Staff,
United
States
Air
Force
from
2016
to
2017;
Major
General,
Commander,
22nd
Air
Force,
AFRC,
Dobbins
Air
Reserve
Base,
Georgia
from
2014
to
2016;
Pilot,
United
Airlines
from
1990
to
2020.
70
RICs
consisting
of
104
Portfolios
KULR
Technology
Group,
Inc.
in
2021;
The
Boeing
Company
(airplane
manufacturer)
J.
Phillip
Holloman
1955
Trustee
(Since
2021)
President
and
Chief
Operating
Officer,
Cintas
Corporation
from
2008
to
2018.
70
RICs
consisting
of
104
Portfolios
PulteGroup,
Inc.
(home
construction);
Rockwell
Automation
Inc.
(industrial
automation)
Catherine
A.
Lynch
(d)
1961
Trustee
(Since
2019)
Chief
Executive
Officer,
Chief
Investment
Officer
and
various
other
positions,
National
Railroad
Retirement
Investment
Trust
from
2003
to
2016;
Associate
Vice
President
for
Treasury
Management,
The
George
Washington
University
from
1999
to
2003;
Assistant
Treasurer,
Episcopal
Church
of
America
from
1995
to
1999.
72
RICs
consisting
of
106
Portfolios
PennyMac
Mortgage
Investment
Trust
Director
and
Officer
Information
(continued)
2023
BlackRock
Annual
Report
to
Shareholders
90
Interested
Trustees
(a)(e)
(a)
The
address
of
each
Trustee
is
c/o
BlackRock,
Inc.,
50
Hudson
Yards,
New
York,
New
York
10001.
(b)
Each
Independent
Trustee
holds
office
until
his
or
her
successor
is
duly
elected
and
qualifies
or
until
his
or
her
earlier
death,
resignation,
retirement
or
removal
as
provided
by
the
Trust’s
by-laws
or
charter
or
statute,
or
until
December
31
of
the
year
in
which
he
or
she
turns
75.
Trustees
who
are
“interested
persons,”
as
defined
in
the
Investment
Company
Act
serve
until
their
successor
is
duly
elected
and
qualifies
or
until
their
earlier
death,
resignation,
retirement
or
removal
as
provided
by
the
Trust’s
by-laws
or
statute,
or
until
December
31
of
the
year
in
which
they
turn
72.
The
Board
may
determine
to
extend
the
terms
of
Independent
Trustees
on
a
case-by-case
basis,
as
appropriate.
(c)
Following
the
combination
of
Merrill
Lynch
Investment
Managers,
L.P.
(“MLIM”)
and
BlackRock,
Inc.
in
September
2006,
the
various
legacy
MLIM
and
legacy
BlackRock
fund
boards
were
realigned
and
consolidated
into
three
new
fund
boards
in
2007.
Certain
Independent
Trustees
first
became
members
of
the
boards
of
other
legacy
MLIM
or
legacy
BlackRock
funds
as
follows:
Frank
J.
Fabozzi,
1988;
R.
Glenn
Hubbard,
2004;
and
W.
Carl
Kester,
1995.
Certain
other
Independent
Trustees
became
members
of
the
boards
of
the
closed-end
funds
in
the
Fixed-Income
Complex
as
follows:
Cynthia
L.
Egan,
2016;
and
Catherine
A.
Lynch,
2016.
(d)
Dr.
Fabozzi,
Dr.
Kester,
Ms.
Lynch
and
Mr.
Perlowski
are
also
trustees
of
the
BlackRock
Credit
Strategies
Fund
and
BlackRock
Private
Investments
Fund.
(e)
Mr.
Fairbairn
and
Mr.
Perlowski
are
both
“interested
persons,”
as
defined
in
the
1940
Act,
of
the
Trust
based
on
their
positions
with
BlackRock,
Inc.
and
its
affiliates.
Mr.
Fairbairn
and
Mr.
Perlowski
are
also
board
members
of
the
BlackRock
Multi-Asset
Complex.
Robert
Fairbairn
1965
Trustee
(Since
2015)
Vice
Chairman
of
BlackRock,
Inc.
since
2019;
Member
of
BlackRock's
Global
Executive
and
Global
Operating
Committees;
Co-Chair
of
BlackRock's
Human
Capital
Committee;
Senior
Managing
Director
of
BlackRock,
Inc.
from
2010
to
2019;
oversaw
BlackRock's
Strategic
Partner
Program
and
Strategic
Product
Management
Group
from
2012
to
2019;
Member
of
the
Board
of
Managers
of
BlackRock
Investments,
LLC
from
2011
to
2018;
Global
Head
of
BlackRock's
Retail
and
iShares
®
businesses
from
2012
to
2016.
98
RICs
consisting
of
272
Portfolios
None
John
M.
Perlowski
(d)
1964
Trustee
(Since
2015);
President
and
Chief
Executive
Officer
(Since
2010)
Managing
Director
of
BlackRock,
Inc.
since
2009;
Head
of
BlackRock
Global
Accounting
and
Product
Services
since
2009;
Advisory
Director
of
Family
Resource
Network
(charitable
foundation)
since
2009.
100
RICs
consisting
of
274
Portfolios
None
Director
and
Officer
Information
(continued)
91
Director
and
Officer
Information
Officers
Who
Are
Not
Trustees
(a)
(a)
The
address
of
each
Officer
is
c/o
BlackRock,
Inc.,
50
Hudson
Yards,
New
York,
New
York
10001.
(b)
Officers
of
the
Trust
serve
at
the
pleasure
of
the
Board.
Further
information
about
the
Trust’s
Trustees
and
Officers
is
available
in
the
Trust’s
Statement
of
Additional
Information,
which
can
be
obtained
without
charge
by
calling
(800)
441-7762.
Name
Year
of
Birth
(b)
Position(s)
Held
(Length
of
Service)
Principal
Occupation(s)
During
Past
5
Years
Jennifer
McGovern
1977
Vice
President
(Since
2014)
Managing
Director
of
BlackRock,
Inc.
since
2016;
Director
of
BlackRock,
Inc.
from
2011
to
2015;
Head
of
Americas
Product
Development
and
Governance
for
BlackRock’s
Global
Product
Group
since
2019;
Head
of
Product
Structure
and
Oversight
for
BlackRock's
U.S.
Wealth
Advisory
Group
from
2013
to
2019.
Trent
Walker
1974
Chief
Financial
Officer
(Since
2021)
Managing
Director
of
BlackRock,
Inc.
since
September
2019;
Executive
Vice
President
of
PIMCO
from
2016
to
2019;
Senior
Vice
President
of
PIMCO
from
2008
to
2015;
Treasurer
from
2013
to
2019
and
Assistant
Treasurer
from
2007
to
2017
of
PIMCO
Funds,
PIMCO
Variable
Insurance
Trust,
PIMCO
ETF
Trust,
PIMCO
Equity
Series,
PIMCO
Equity
Series
VIT,
PIMCO
Managed
Accounts
Trust,
2
PIMCO-sponsored
interval
funds
and
21
PIMCO-sponsored
closed-end
funds.
Jay
M.
Fife
1970
Treasurer
(Since
2007)
Managing
Director
of
BlackRock,
Inc.
since
2007.
Aaron
Wasserman
1974
Chief
Compliance
Officer
(Since
2023)
Managing
Director
of
BlackRock,
Inc.
since
2018;
Chief
Compliance
Officer
of
the
BlackRock-advised
funds
in
the
BlackRock
Multi-Asset
Complex,
the
BlackRock
Fixed-Income
Complex
and
the
iShares
Complex
since
2023;
Deputy
Chief
Compliance
Officer
for
the
BlackRock-advised
funds
in
the
BlackRock
Multi-Asset
Complex,
the
BlackRock
Fixed-
Income
Complex
and
the
iShares
Complex
from
2014
to
2023.
Lisa
Belle
1968
Anti-Money
Laundering
Compliance
Officer
(Since
2019)
Managing
Director
of
BlackRock,
Inc.
since
2019;
Global
Financial
Crime
Head
for
Asset
and
Wealth
Management
of
JP
Morgan
from
2013
to
2019;
Managing
Director
of
RBS
Securities
from
2012
to
2013;
Head
of
Financial
Crimes
for
Barclays
Wealth
Americas
from
2010
to
2012.
Janey
Ahn
1975
Secretary
(Since
2019)
Managing
Director
of
BlackRock,
Inc.
since
2018;
Director
of
BlackRock,
Inc.
from
2009
to
2017.
Effective
July
1,
2023,
Aaron
Wasserman
replaced
Charles
Park
as
Chief
Compliance
Officer
of
the
Trust.
Effective
November
9,
2023,
Arthur
P.
Steinmetz
was
appointed
as
a
Trustee
of
the
Trust.
Additional
Information
2023
BlackRock
Annual
Report
to
Shareholders
92
Tailored
Shareholder
Reports
for
Open-End Mutual
Funds
and
ETFs
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
online,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Funds.
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)
93
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
Annual
Report
to
Shareholders
94
Currency
Abbreviation
CAD
Canadian
Dollar
EUR
Euro
GBP
British
Pound
JPY
Japanese
Yen
USD
United
States
Dollar
Portfolio
Abbreviation
CDI
Crest
Depository
Interests
CLO
Collateralized
Loan
Obligation
CSMC
Credit
Suisse
Mortgage
Capital
DAC
Designated
Activity
Company
EAFE
Europe,
Australasia
and
Far
East
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
REPO_CORRA
Canadian
Overnight
Repo
Rate
SOFR
Secured
Overnight
Financing
Rate
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-09/23-AR
Item 2 –
Code of Ethics –
The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The
registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.
Item 3 – Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
Frank J. Fabozzi
Lorenzo A. Flores
Catherine A. Lynch
Catherine A. Lynch
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
Item 4 – Principal Accountant Fees and Services
The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:
(a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees | |||||
Entity Name | Current Fiscal Year End | Previous Fiscal Year End | Current Fiscal Year End | Previous Fiscal Year End | Current Fiscal Year End | Previous Fiscal Year End | Current Fiscal Year End | Previous Fiscal Year End |
BlackRock Sustainable Total Return Fund | $86,700 | $74,970 | $0 | $44 | $17,600 | $28,900 | $407 | $0 |
The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):
Current Fiscal Year End | Previous Fiscal Year End | |
(b) Audit-Related Fees1 | $0 | $0 |
(c) Tax Fees2 | $0 | $0 |
(d) All Other Fees3 | $2,154,000 | $2,098,000 |
1
The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.
2
The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.
3
Non-audit fees of $2,154,000 and $2,098,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g)
The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:
Entity Name | Current Fiscal Year End | Previous Fiscal Year End |
BlackRock Sustainable Total Return Fund | $18,007 | $28,944 |
Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:
Current Fiscal Year End | Previous Fiscal Year End |
$2,154,000 | $2,098,000 |
These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and
the Affiliated Service Providers
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) – Not Applicable
(j) – Not Applicable
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 – See Item 2
(a)(2) Section 302 Certifications are attached
(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
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: November 20, 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: November 20, 2023
By: _/s/ Trent Walker___________________
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Bond Fund, Inc.
Date: November 20, 2023