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: 09/30/2024
Date of reporting period: 03/31/2024
Item 1 – Report to Stockholders
(a) The Report to Shareholders is attached herewith.
(b) Not Applicable
MARCH
31,
2024
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2024
Semi-Annual
Report
(Unaudited)
BlackRock
Funds
V
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
BlackRock
Bond
Fund,
Inc.
BlackRock
Sustainable
Total
Return
Fund
Dear
Shareholder,
The
combination
of
continued
economic
growth
and
cooling
inflation
provided
a
supportive
backdrop
for
investors
during
the
12-month
reporting
period
ended
March
31,
2024.
Higher
interest
rates
helped
to
rein
in
inflation,
and
the
Consumer
Price
Index
decelerated
substantially
while
remaining
above
pre-pandemic
levels.
A
moderating
labor
market
helped
ease
inflationary
pressure,
although
wages
continued
to
grow.
Wage
and
job
growth
powered
robust
consumer
spending,
backstopping
the
economy.
On
October
7,
2023,
Hamas
launched
a
horrific
attack
on
Israel.
The
ensuing
war
has
had
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
robust
during
the
period,
as
interest
rates
stabilized
and
the
economy
proved
to
be
more
resilient
than
many
investors
expected.
The
U.S.
economy
continued
to
show
strength,
and
growth
further
accelerated
in
the
second
half
of
2023.
Large-capitalization
U.S.
stocks
posted
particularly
substantial
gains,
supported
by
the
performance
of
a
few
notable
technology
companies,
while
small-capitalization
U.S.
stocks’
advance
was
slower
but
still
robust.
Meanwhile,
international
developed
market
equities
also
gained
strongly,
while
emerging
market
stocks
advanced
at
a
more
modest
pace.
The
10-year
U.S.
Treasury
yield
rose
during
the
reporting
period,
as
investors
reacted
to
elevated
inflation
and
attempted
to
anticipate
future
interest
rate
changes.
However,
higher
yields
drove
positive
returns
overall
for
10-
year
U.S.
Treasuries
and
solid
gains
in
shorter-duration
U.S.
Treasuries.
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
twice
during
the
12-month
period,
but
paused
its
tightening
after
its
July
meeting.
The
Fed
also
continued
to
reduce
its
balance
sheet
by
not
replacing
some
of
the
securities
that
reach
maturity.
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
stopped
tightening
for
now,
we
believe
that
the
new
economic
regime
means
that
the
Fed
will
need
to
maintain
high
rates
for
an
extended
period
despite
the
market’s
hopes
for
rapid
interest
rate
cuts,
as
reflected
in
the
ongoing
rally.
In
this
new
regime,
we
anticipate
greater
volatility
and
dispersion
of
returns,
creating
more
opportunities
for
selective
portfolio
management.
Looking
at
developed
market
stocks,
we
have
an
overweight
stance
on
U.S.
stocks
overall,
particularly
given
the
promise
of
emerging
AI
technologies.
We
are
also
overweight
Japanese
stocks
as
shareholder-friendly
policies
generate
increased
investor
interest,
although
we
maintain
an
underweight
stance
on
European
stocks.
In
credit,
there
are
selective
opportunities
in
the
near
term
despite
tighter
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
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
March
31,
2024
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
23.48
%
29.88
%
U.S.
small
cap
equities
(Russell
2000
®
Index)
19.94
19.71
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
16.81
15.32
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
10.42
8.15
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
2.68
5.24
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
4.88
(2.44
)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
5.99
1.70
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
7.48
3.13
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
8.73
11.15
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Semi-Annual
Report:
Fund
Summary
........................................................................................................
4
About
Fund
Performance
.................................................................................................
10
Disclosure
of
Expenses
...................................................................................................
11
Derivative
Financial
Instruments
.............................................................................................
11
Financial
Statements:
Schedules
of
Investments
...............................................................................................
12
Statements
of
Assets
and
Liabilities
.........................................................................................
49
Statements
of
Operations
................................................................................................
52
Statements
of
Changes
in
Net
Assets
........................................................................................
53
Financial
Highlights
.....................................................................................................
55
Notes
to
Financial
Statements
...............................................................................................
64
Statement
Regarding
Liquidity
Risk
Management
Program
.............................................................................
78
Additional
Information
....................................................................................................
79
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
81
Fund
Summary
as
of
March
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
4
BlackRock
Sustainable
High
Yield
Bond
Fund
Investment
Objective
BlackRock
Sustainable
High
Yield
Bond
Fund's
(the
“Fund”)
investment
objective
is
to
seek
to
maximize
total
return,
consistent
with
income
generation
and
prudent
investment
management,
while
seeking
to
maintain
certain
environmental,
governance
and
social
(“ESG”)
characteristics,
climate
risk
exposure
and
climate
opportunities
relative
to
the
Fund’s
benchmark.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
six-month
period
ended
March
31,
2024,
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?
An
underweight
and
security
selection
in
retailers
detracted
from
performance.
The
Fund
was
also
hurt
by
security
selection
in
BB
rated
issues
and
the
healthcare
sector.
An
underweight
in
CC
rated
securities
was
a
further
detractor,
as
was
an
overweight
in
bank
loans.
On
the
other
hand,
security
selection
in
B
rated
issues
contributed,
as
did
selection
in
the
information
technology
and
wireless
telecommunications
sectors.
An
underweight
in
the
wireless
sector
also
helped
results.
The
Fund
used
derivatives,
including
credit
default
swaps,
index
credit
default
swaps,
and
index
futures,
to
add
or
reduce
the
portfolio’s
risk
exposure
or
express
credit
views.
The
use
of
derivatives
contributed
to
performance
in
the
semi-annual
period.
Describe
recent
portfolio
activity.
The
Fund’s
allocation
to
investment-grade
bonds
decreased
from
about
4%
of
assets
to
2%.
The
Fund
reduced
its
weighting
in
BB
rated
bonds
from
34%
to
27%,
increasing
the
extent
of
its
underweight
in
this
area.
It
added
to
the
overweight
in
B
rated
issues,
moving
the
allocation
from
50%
to
55%.
Describe
portfolio
positioning
at
period
end.
The
Fund
was
underweight
in
BBs
(47%
versus
27%
for
the
index),
overweight
in
Bs
(55%
to
39%)
and
slightly
overweight
in
CCCs
(13%
versus
12%).
It
remained
underweight
in
high
yield
bonds
to
fund
the
allocation
to
bank
loans
and
the
modest
weighting
in
investment-grade
corporates.
At
the
sector
level,
the
Fund
was
overweight
in
information
technology,
insurance,
and
wireline
telecommunications,
and
it
was
underweight
in
midstream
energy,
independent
energy,
and
retailers.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Performance
N/A
-
Not
applicable
as
share
class
and
index
do
not
have
a
sales
charge.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
Average
Annual
Total
Returns
(a)(b)
1
Year
Since
Inception
(c)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
......................................
7.07%
6.22%
8.63%
9.89%
N/A
0.83%
N/A
Investor
A
.......................................
6.54
5.56
8.50
9.61
5.23%
0.58
(0.93)%
Class
K
........................................
7.12
6.24
8.66
9.94
N/A
0.88
N/A
Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index
(d)
—
—
8.73
11.15
N/A
1.33
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
invests
primarily
in
non-investment
grade
bonds
with
maturities
of
ten
years
or
less.
The
Fund
normally
invests
at
least
80%
of
its
net
assets,
plus
the
amount
of
any
borrowings
for
investment
purposes,
in
high
yield
bonds.
(c)
The
Fund
commenced
operations
on
July
22,
2021.
(d)
An
unmanaged
index
comprised
of
issuers
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.
Fund
Summary
as
of
March
31,
2024
(continued)
5
Fund
Summary
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
(10/01/23)
Ending
Account
Value
(03/31/24)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(10/01/23)
Ending
Account
Value
(03/31/24)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00
$
1,086.30
$
3.03
$
1,000.00
$
1,022.10
$
2.93
0.58%
Investor
A
................................
1,000.00
1,085.00
4.38
1,000.00
1,020.80
4.24
0.84
Class
K
..................................
1,000.00
1,086.60
2.82
1,000.00
1,022.30
2.73
0.54
(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
183/366
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
91.6
%
Floating
Rate
Loan
Interests
...........................
7.1
Fixed
Rate
Loan
Interests
.............................
0.5
Common
Stocks
...................................
0.4
Preferred
Securities
.................................
0.4
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
AA/Aa
.........................................
0.5
%
BBB/Baa
.......................................
2.1
BB/Ba
.........................................
35.6
B
............................................
49.8
CCC/
Caa
.......................................
10.0
NR
...........................................
2.0
(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
March
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
6
BlackRock
Sustainable
Low
Duration
Bond
Fund
Investment
Objective
BlackRock
Sustainable
Low
Duration
Bond
Fund's
(the
“Fund”)
investment
objective
is
to
seek
total
return
in
excess
of
the
reference
benchmark
in
a
manner
that
is
consistent
with
preservation
of
capital
while
seeking
to
maintain
certain
environmental,
social
and
governance
(“ESG”)
characteristics,
climate
risk
exposure
and
climate
opportunities
relative
to
the
Fund’s
benchmark.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
six-month
period
ended
March
31,
2024,
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?
Positioning
in
investment-grade
corporate
bonds,
asset-backed
securities
(“ABS”),
and
commercial
mortgage-backed
securities
(“CMBS”)
had
the
largest
positive
impact
on
performance,
followed
by
positioning
in
high
yield
bonds
and
agency
mortgage-backed
securities
(“MBS”).
Duration
and
yield
curve
positioning
was
an
additional
contributor.
(Duration
is
a
measure
of
interest
rate
sensitivity.)
Positioning
in
non-agency
MBS
and
U.S.
Treasuries
contributed
to
a
lesser
extent,
while
positioning
in
emerging
market
bonds
detracted.
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
performance.
The
Fund’s
cash
position
had
no
material
impact
on
performance.
Describe
recent
portfolio
activity.
Within
investment-grade
corporates,
the
investment
adviser
initially
favored
the
industrials
sector,
particularly
consumer
cyclicals.
It
also
took
advantage
of
pockets
of
opportunity
in
financials,
with
a
focus
on
larger,
well-capitalized
institutions.
As
spreads
tightened,
the
investment
adviser
reduced
the
Fund’s
allocations
to
these
areas.
While
it
continued
to
see
strong
fundamentals
in
corporates
in
the
latter
half
of
the
period,
it
sought
to
reduce
risk
given
that
spreads
had
declined
near
previous
historic
lows.
The
investment
adviser
also
moved
up
in
quality
within
high
yield.
In
ABS,
the
investment
adviser
favored
high-quality,
consumer-oriented
securities
such
as
autos,
credit
cards,
and
private
student
loans.
It
also
maintained
an
allocation
to
collateralized
loan
obligations,
where
it
saw
an
attractive
risk
and
return
profile.
As
the
period
progressed,
the
investment
adviser
actively
adjusted
the
portfolio’s
positioning
in
ABS
by
reducing
risk
in
strong-performing
sectors,
such
as
credit
cards
and
consumer
loans.
The
investment
adviser
maintained
a
muted
allocation
to
CMBS
in
response
to
fundamental
pressures
posed
by
the
high-rate
environment
and
the
changes
in
consumer
and
business
behavior
brought
about
by
COVID-19.
The
investment
adviser
added
to
agency
MBS
in
the
fourth
quarter
of
2023
as
selling
pressure
from
banks
caused
valuations
to
fall
to
more
attractive
levels.
It
continued
to
add
to
the
category
in
early
2024,
but
it
subsequently
reduced
the
position
as
yield
spreads
tightened.
The
Fund
continued
to
have
a
position
in
U.S.
agency
callable
debt
based
on
the
category’s
compelling
risk-adjusted
yields
and
floating-rate
characteristics.
The
Fund
entered
the
reporting
period
with
a
long
duration
bias.
The
investment
adviser
continued
to
increase
duration
as
the
market
weakened,
but
it
took
advantage
of
the
November-December
2023
rally
to
reduce
duration
to
neutral.
It
moved
to
a
slightly
short
duration
stance
in
response
to
the
hawkish
tone
of
the
January
2024
meeting
of
the
Federal
Open
Market
Committee,
before
shifting
back
to
a
long
duration
as
the
first
quarter
progressed.
Describe
portfolio
positioning
at
period
end.
The
Fund’s
duration
was
longer
than
that
of
the
benchmark.
The
investment
adviser
remained
cautious
with
respect
to
market
segments
that
could
face
fundamental
pressure
because
of
a
slowing
economy,
as
well
as
those
subject
to
unique
headwinds.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Fund
Summary
as
of
March
31,
2024
(continued)
7
Fund
Summary
BlackRock
Sustainable
Low
Duration
Bond
Fund
Performance
N/A
-
Not
applicable
as
share
class
and
index
do
not
have
a
sales
charge.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
Expense
Example
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Average
Annual
Total
Returns
(a)(b)
1
Year
Since
Inception
(c)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
......................................
4.50%
3.76%
3.57%
3.97%
N/A
0.17%
N/A
Investor
A
.......................................
4.14
3.39
3.55
3.81
1.47%
(0.04)
(0.97)%
Class
K
........................................
4.54
3.77
3.70
4.12
N/A
0.25
N/A
ICE
BofA
1-3
Year
U.S.
Corporate
&
Government
Index
(d)
.....
—
—
3.11
3.56
N/A
0.34
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
normally
invests
at
least
80%
of
its
assets
in
bonds.
The
Fund
may
invest
up
to
20%
of
its
assets
in
non-investment
grade
bonds
(commonly
called
“high
yield”
or
“junk
bonds”).
(c)
The
Fund
commenced
operations
on
October
18,
2021.
(d)
An
unmanaged
index
comprised
of
investment
grade
corporate
bonds
and
U.S.
Government
Agency
and
U.S.
Treasury
securities
with
a
maturity
ranging
from
one
to
three
years.
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(10/01/23)
Ending
Account
Value
(03/31/24)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(10/01/23)
Ending
Account
Value
(03/31/24)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00
$
1,035.70
$
1.93
$
1,000.00
$
1,023.10
$
1.92
0.38%
Investor
A
................................
1,000.00
1,035.50
3.36
1,000.00
1,021.70
3.34
0.66
Class
K
..................................
1,000.00
1,037.00
1.83
1,000.00
1,023.20
1.82
0.36
(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
183/366
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
35.2
%
U.S.
Treasury
Obligations
.............................
26.3
Asset-Backed
Securities
..............................
17.4
U.S.
Government
Sponsored
Agency
Securities
..............
10.7
Non-Agency
Mortgage-Backed
Securities
..................
6.7
Foreign
Agency
Obligations
............................
3.7
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
AAA/Aaa
(c)
......................................
61.8
%
AA/Aa
.........................................
0.8
A
.............................................
15.1
BBB/Baa
.......................................
12.4
BB/Ba
.........................................
3.9
B
............................................
3.0
CCC/Caa
.......................................
0.0
(d)
NR
...........................................
3.0
(a)
Excludes
short-term
securities
and
TBA
sale
commitments.
(b)
For
financial
reporting
purposes,
credit
quality
ratings
shown
above
reflect
the
highest
rating
assigned
by
either
S&P
Global
Ratings
or
Moody’s
Investors
Service
if
ratings
differ.
These
rating
agencies
are
independent,
nationally
recognized
statistical
rating
organizations
and
are
widely
used.
Investment
grade
ratings
are
credit
ratings
of
BBB/Baa
or
higher.
Below
investment
grade
ratings
are
credit
ratings
of
BB/Ba
or
lower.
Investments
designated
NR
are
not
rated
by
either
rating
agency.
Unrated
investments
do
not
necessarily
indicate
low
credit
quality.
Credit
quality
ratings
are
subject
to
change.
(c)
The
investment
adviser
evaluates
the
credit
quality
of
unrated
investments
based
upon
certain
factors
including,
but
not
limited
to,
credit
ratings
for
similar
investments
and
financial
analysis
of
sectors,
individual
investments
and/or
issuers.
Using
this
approach,
the
investment
adviser
has
deemed
unrated
U.S.
Government
Sponsored
Agency
Securities
and
U.S.
Treasury
Obligations
to
be
of
similar
credit
quality
as
investments
rated
AAA/Aaa.
(d)
Represents
less
than
0.1%
of
the
Fund's
total
investments.
Fund
Summary
as
of
March
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
8
BlackRock
Sustainable
Total
Return
Fund
Investment
Objective
BlackRock
Sustainable
Total
Return
Fund’s
(the
“Fund”)
investment
objective
is
to
realize
a
total
return
that
exceeds
that
of
the
Bloomberg
U.S.
Aggregate
Bond
Index
(the
“Benchmark”)
while
seeking
to
maintain
certain
environmental,
social
and
governance
(“ESG”)
characteristics,
climate
risk
exposure
and
climate
opportunities
relative
to
the
Benchmark.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
six-month
period
ended
March
31,
2024,
all
of
the
Fund’s
share
classes
outperformed
its
benchmark,
the
Bloomberg
U.S.
Aggregate
Bond
Index,
with
the
exception
of
its
Investor
A
shares
which
performed
in
line.
What
factors
influenced
performance?
The
Fund’s
duration/yield
curve
positioning
detracted
from
relative
performance
during
the
reporting
period.
(Duration
is
a
measure
of
interest
rate
sensitivity.)
Positions
in
structured
products,
agency
mortgage-backed
securities
(“MBS”),
and
high
yield
bonds
contributed
positively.
Describe
recent
portfolio
activity.
The
bond
market
staged
a
significant
rally
in
the
final
two
months
of
2023
on
expectations
for
a
favorable
shift
in
Fed
policy.
The
rally
subsequently
stalled
in
the
first
quarter
of
2024
as
investors
shifted
to
the
view
that
sticky
inflation
and
better-than-expected
growth
would
cause
the
Fed
to
maintain
a
restrictive
policy
for
longer
than
expected.
The
investment
adviser
responded
to
these
shifts
by
actively
adjusting
the
Fund’s
duration
and
yield
curve
positioning.
The
investment
adviser
modestly
added
to
U.S.
investment-grade
corporates
in
the
fourth
quarter
of
2023
before
reducing
the
position
somewhat
in
the
latter
half
of
the
reporting
period.
It
continued
to
prefer
utilities
and
financials
over
industrials,
and
it
added
to
the
portfolio’s
position
in
European
corporates.
The
Fund
maintained
an
overweight
in
agency
MBS,
based
on
the
view
that
the
category
can
benefit
from
a
decline
in
market
volatility.
The
Fund
maintained
a
sizable
allocation
to
securitized
assets.
The
investment
adviser
favored
securities
high
in
issuers’
capital
structures,
with
a
preference
for
industrials,
multi-family
properties,
hotels,
higher-quality
collateralized
loan
obligations
with
structural
protections,
and
select
office
properties
in
commercial
mortgage-backed
securities.
It
remained
cautious
on
non-agency
residential
MBS
given
declining
fundamentals
and
supply-and-demand
headwinds.
The
investment
adviser
added
a
modest
allocation
to
emerging
market
bonds,
favoring
select
Latin
American
countries.
Describe
portfolio
positioning
at
period
end.
The
Fund’s
duration
was
below
that
of
the
index.
It
was
overweight
in
the
front
end
of
the
yield
curve
and
underweight
in
intermediate-
and
longer-term
bonds.
The
Fund
was
overweight
in
investment-grade
corporates,
and
it
maintained
an
allocation
to
high
yield
on
the
view
that
yields
remained
attractive
in
a
low-default
environment.
However,
the
adviser
continued
to
exercise
caution
with
respect
to
lower-quality
debt.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Performance
N/A
-
Not
applicable
as
share
class
and
index
do
not
have
a
sales
charge.
Past
performance
is
not
an
indication
of
future
results.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
Average
Annual
Total
Returns
(a)(b)
1
Year
Since
Inception
(c)
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
Without
Sales
Charge
With
Sales
Charge
Without
Sales
Charge
With
Sales
Charge
Institutional
......................................
4.39%
3.08%
6.15%
1.82%
N/A
(4.13)%
N/A
Investor
A
.......................................
3.90
2.55
5.98
1.51
(2.56)%
(4.40)
(5.98)%
Class
K
........................................
4.42
3.10
6.17
1.85
N/A
(4.09)
N/A
Bloomberg
U.S.
Aggregate
Bond
Index
(d)
................
—
—
5.99
1.70
N/A
(3.66)
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
typically
invests
more
than
90%
of
its
assets
in
a
diversified
portfolio
of
fixed-income
securities.
(c)
The
Fund
commenced
operations
on
October
18,
2021.
(d)
A
broad-based
flagship
benchmark
that
measures
the
investment
grade,
U.S.
dollar-denominated,
fixed-rate
taxable
bond
market.
Fund
Summary
as
of
March
31,
2024
(continued)
9
Fund
Summary
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
(10/01/23)
Ending
Account
Value
(03/31/24)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(10/01/23)
Ending
Account
Value
(03/31/24)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00
$
1,061.50
$
2.16
$
1,000.00
$
1,022.90
$
2.12
0.42%
Investor
A
................................
1,000.00
1,059.80
3.91
1,000.00
1,021.20
3.84
0.76
Class
K
..................................
1,000.00
1,061.70
2.06
1,000.00
1,023.00
2.02
0.40
(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
183/366
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
U.S.
Government
Sponsored
Agency
Securities
..............
41.1
%
Corporate
Bonds
...................................
26.0
U.S.
Treasury
Obligations
.............................
16.7
Asset-Backed
Securities
..............................
9.4
Non-Agency
Mortgage-Backed
Securities
..................
4.0
Foreign
Government
Obligations
........................
1.6
Foreign
Agency
Obligations
............................
0.7
Municipal
Bonds
...................................
0.5
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(b)
Percent
of
Total
Investments
(a)
AAA/
Aaa
(c)
......................................
62.8
%
AA/Aa
.........................................
3.5
A
.............................................
10.9
BBB/Baa
.......................................
16.6
BB/Ba
.........................................
0.1
CCC/
Caa
.......................................
0.2
CC/Ca
.........................................
0.5
NR
...........................................
5.4
(a)
Excludes
short-term
securities,
options
purchased,
options
written,
TBA
sale
commitments
and
investments
sold
short.
(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
2024
BlackRock
Semi-Annual
Report
to
Shareholders
10
Institutional and
Class
K
Shares
are
not
subject
to
any
sales
charge.
These
shares
bear
no
ongoing
distribution
or
service
fees
and
are
available
only
to
certain
eligible
investors.
Investor
A
Shares
are
subject
to
a
maximum
initial
sales
charge
(front-end
load)
of
4.00%
for
BlackRock
Sustainable
High
Yield
Bond
Fund
and
BlackRock
Sustainable
Total
Return
Fund
and
2.25%
for
BlackRock
Sustainable
Low
Duration
Bond
Fund
and
a
service
fee
of
0.25%
per
year
(but
no
distribution
fee).
Certain
redemptions
of
these
shares
may
be
subject
to
a
contingent
deferred
sales
charge
(“CDSC”)
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase.
These
shares
are
generally
available
through
financial
intermediaries.
Past
performance
is
not
an
indication
of
future
results.
Financial
markets
have
experienced
extreme
volatility
and
trading
in
many
instruments
has
been
disrupted.
These
circumstances
may
continue
for
an
extended
period
of
time
and
may
continue
to
affect
adversely
the
value
and
liquidity
of each
Fund’s
investments.
As
a
result,
current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Refer
to
blackrock.com
to
obtain
performance
data
current
to
the
most
recent
month-end.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Figures
shown
in
the
performance
table(s) assume
reinvestment
of
all
distributions,
if
any,
at
net
asset
value
(“NAV”)
on
the
ex-dividend
date
or
payable
date,
as
applicable.
Investment
return
and
principal
value
of
shares
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Distributions
paid
to
each
class
of
shares
will
vary
because
of
the
different
levels
of
service,
distribution
and
transfer
agency
fees
applicable
to
each
class,
which
are
deducted
from
the
income
available
to
be
paid
to
shareholders.
BlackRock
Advisors,
LLC
(the
“Manager”),
each
Fund’s
investment
adviser,
has
contractually
and/or
voluntarily
agreed
to
waive
and/or
reimburse
a
portion
of
each
Fund’s
expenses.
Without
such
waiver(s)
and/or
reimbursement(s),
each
Fund’s
performance
would
have
been
lower.
With
respect
to
each
Fund’s
voluntary
waiver(s),
if
any,
the
Manager
is
under
no
obligation
to
waive
and/or
reimburse
or
to
continue
waiving
and/or
reimbursing
its
fees
and
such
voluntary
waiver(s)
may
be
reduced
or
discontinued
at
any
time. With
respect
to
each
Fund’s
contractual
waiver(s),
if
any,
the
Manager
is
under
no
obligation
to
continue
waiving
and/or
reimbursing
its
fees
after
the
applicable
termination
date
of
such agreement.
See
the
Notes
to
Financial
Statements
for
additional
information
on
waivers
and/or
reimbursements.
The
standardized
30-day
yield
includes
the
effects
of
any
waivers
and/or
reimbursements.
The
unsubsidized
30-day
yield
excludes
the
effects
of
any
waivers
and/or
reimbursements.
Disclosure
of
Expenses
11
Disclosure
of
Expenses
/
Derivative
Financial
Instruments
Shareholders
of
each
Fund
may
incur
the
following
charges:
(a)
transactional
expenses,
such
as
sales
charges;
and
(b)
operating
expenses,
including
investment
advisory
fees,
administration
fees, service
and
distribution
fees,
including
12b-1
fees,
acquired
fund
fees
and
expenses, and
other
fund
expenses.
The
expense
examples shown
(which are
based
on
a
hypothetical
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
through
the
end
of
the
period) are
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in each
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
mutual
funds.
The
expense
examples
provide
information
about
actual
account
values
and
actual
expenses.
Annualized
expense
ratios
reflect
contractual
and
voluntary
fee
waivers,
if
any.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their
Fund and
share
class
under
the
heading
entitled
“Expenses
Paid
During
the
Period.”
The
expense
examples
also
provide
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
a
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the
ongoing
expenses
of
investing
in
these
Funds
and
other
funds,
compare
the
5%
hypothetical
examples
with
the
5%
hypothetical
examples
that
appear
in
shareholder
reports
of
other
funds.
The
expenses
shown
in
the
expense
examples
are
intended
to
highlight
shareholders’
ongoing
costs
only
and
do
not
reflect
transactional
expenses,
such
as
sales
charges,
if
any.
Therefore,
the
hypothetical
examples
are
useful
in
comparing
ongoing
expenses
only
and
will
not
help
shareholders
determine
the
relative
total
expenses
of
owning
different
funds.
If
these
transactional
expenses
were
included,
shareholder
expenses
would
have
been
higher.
Derivative
Financial
Instruments
The
Funds
may
invest
in
various
derivative
financial
instruments.
These
instruments
are
used
to
obtain
exposure
to
a
security,
commodity,
index,
market,
and/or
other
assets
without
owning
or
taking
physical
custody
of
securities,
commodities
and/or
other
referenced
assets
or
to
manage
market,
equity,
credit,
interest
rate,
foreign
currency
exchange
rate,
commodity
and/or
other
risks.
Derivative
financial
instruments
may
give
rise
to
a
form
of
economic
leverage
and
involve
risks,
including
the
imperfect
correlation
between
the
value
of
a
derivative
financial
instrument
and
the
underlying
asset,
possible
default
of
the
counterparty
to
the
transaction
or
illiquidity
of
the
instrument.
Pursuant
to
Rule
18f-4
under
the
1940
Act,
among
other
things,
the
Funds
must
either
use
derivative
financial
instruments
with
embedded
leverage
in
a
limited
manner
or
comply
with
an
outer
limit
on
fund
leverage
risk
based
on
value-at-risk. The
Funds’
successful
use
of
a
derivative
financial
instrument
depends
on
the
investment
adviser’s
ability
to
predict
pertinent
market
movements
accurately,
which
cannot
be
assured.
The
use
of
these
instruments
may
result
in
losses
greater
than
if
they
had
not
been
used,
may
limit
the
amount
of
appreciation a
Fund
can
realize
on
an
investment
and/or
may
result
in
lower
distributions
paid
to
shareholders.
The
Funds’
investments
in
these
instruments,
if
any,
are
discussed
in
detail
in
the
Notes
to
Financial
Statements.
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
12
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Common
Stocks
Containers
&
Packaging
—
0.2%
Crown
Holdings,
Inc.
.................
912
$
72,285
Electrical
Equipment
—
0.1%
Sensata
Technologies
Holding
plc
.........
1,867
68,594
Hotels,
Restaurants
&
Leisure
—
0.1%
Aramark
..........................
1,164
37,853
Total
Common
Stocks
—
0
.4
%
(Cost:
$
166,589
)
.................................
178,732
Par
(000)
Par
(000)
Corporate
Bonds
Aerospace
&
Defense
—
3.8%
(a)
Bombardier,
Inc.
7.88%
,
04/15/27
..................
USD
52
52,036
6.00%
,
02/15/28
..................
88
86,564
7.50%
,
02/01/29
..................
31
31,922
8.75%
,
11/15/30
..................
102
108,913
7.25%
,
07/01/31
..................
62
62,126
TransDigm,
Inc.
6.38%
,
03/01/29
..................
555
556,728
7.13%
,
12/01/31
..................
173
178,286
6.63%
,
03/01/32
..................
429
433,415
Triumph
Group,
Inc.,
9.00%,
03/15/28
.....
184
193,979
1,703,969
Automobile
Components
—
1.5%
Champions
Financing,
Inc.,
8.75%,
02/15/29
(a)
62
64,954
Clarios
Global
LP
(a)
8.50%
,
05/15/27
..................
393
393,595
6.75%
,
05/15/28
..................
147
149,003
Goodyear
Tire
&
Rubber
Co.
(The),
5.63%,
04/30/33
......................
2
1,826
Phinia,
Inc.,
6.75%,
04/15/29
(a)
..........
32
32,309
Tenneco,
Inc.,
8.00%,
11/17/28
(a)
........
42
38,322
680,009
Automobiles
—
0.1%
Ford
Motor
Co.,
6.10%,
08/19/32
........
36
36,479
Banks
—
0.5%
BNP
Paribas
SA,
(5-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
4.35%),
8.50%
(a)
(b)
(c)
...............
200
209,050
Broadline
Retail
—
0.1%
(a)
ANGI
Group
LLC,
3.88%,
08/15/28
.......
36
31,248
Match
Group
Holdings
II
LLC,
3.63%,
10/01/31
17
14,446
NMG
Holding
Co.,
Inc.,
7.13%,
04/01/26
....
25
24,482
70,176
Building
Products
—
1.0%
(a)
Advanced
Drainage
Systems,
Inc.,
6.38%,
06/15/30
......................
107
107,554
Builders
FirstSource,
Inc.,
6.38%,
03/01/34
..
43
43,178
Camelot
Return
Merger
Sub,
Inc.,
8.75%,
08/01/28
......................
60
61,635
Standard
Industries,
Inc.
5.00%
,
02/15/27
..................
8
7,760
4.75%
,
01/15/28
..................
9
8,590
4.38%
,
07/15/30
..................
55
49,420
3.38%
,
01/15/31
..................
56
46,954
Summit
Materials
LLC,
7.25%,
01/15/31
....
102
106,017
431,108
Security
Par
(000)
Par
(000)
Value
Capital
Markets
—
0.2%
(a)
AG
TTMT
Escrow
Issuer
LLC,
8.63%,
09/30/27
USD
33
$
34,162
Aretec
Group,
Inc.,
10.00%,
08/15/30
.....
25
27,307
Compass
Group
Diversified
Holdings
LLC,
5.25%,
04/15/29
.................
47
44,656
106,125
Chemicals
—
2.0%
Chemours
Co.
(The)
5.38%
,
05/15/27
..................
23
22,049
5.75%
,
11/15/28
(a)
.................
47
43,339
4.63%
,
11/15/29
(a)
.................
36
31,034
Element
Solutions,
Inc.,
3.88%,
09/01/28
(a)
..
281
257,775
HB
Fuller
Co.,
4.00%,
02/15/27
.........
47
44,868
Herens
Holdco
SARL,
4.75%,
05/15/28
(a)
...
200
174,543
Kobe
U.S.
Midco
2,
Inc.,
9.25%,
11/01/26
(a)
..
60
48,495
WR
Grace
Holdings
LLC
(a)
4.88%
,
06/15/27
..................
24
22,809
5.63%
,
08/15/29
..................
235
210,299
7.38%
,
03/01/31
..................
32
32,402
887,613
Commercial
Services
&
Supplies
—
3.6%
ADT
Security
Corp.
(The)
(a)
4.13%
,
08/01/29
..................
3
2,748
4.88%
,
07/15/32
..................
53
47,973
Allied
Universal
Holdco
LLC
(a)
6.63%
,
07/15/26
..................
74
73,951
9.75%
,
07/15/27
..................
172
172,517
4.63%
,
06/01/28
..................
200
182,634
7.88%
,
02/15/31
..................
203
205,598
APi
Group
DE,
Inc.
(a)
4.13%
,
07/15/29
..................
19
17,119
4.75%
,
10/15/29
..................
24
22,119
APX
Group,
Inc.
(a)
6.75%
,
02/15/27
..................
13
13,053
5.75%
,
07/15/29
..................
80
76,920
Aramark
Services,
Inc.,
5.00%,
02/01/28
(a)
...
103
99,413
Covanta
Holding
Corp.
4.88%
,
12/01/29
(a)
.................
20
17,925
5.00%
,
09/01/30
..................
40
35,251
Garda
World
Security
Corp.
(a)
4.63%
,
02/15/27
..................
48
45,993
9.50%
,
11/01/27
..................
29
29,070
7.75%
,
02/15/28
..................
99
101,523
6.00%
,
06/01/29
..................
14
12,531
GFL
Environmental,
Inc.
(a)
3.75%
,
08/01/25
..................
5
4,870
4.00%
,
08/01/28
..................
37
34,102
3.50%
,
09/01/28
..................
4
3,664
4.75%
,
06/15/29
..................
84
78,997
4.38%
,
08/15/29
..................
16
14,740
6.75%
,
01/15/31
..................
61
62,514
Neptune
Bidco
US,
Inc.,
9.29%,
04/15/29
(a)
..
52
49,170
Prime
Security
Services
Borrower
LLC,
6.25%,
01/15/28
(a)
.....................
57
55,836
Stericycle,
Inc.,
3.88%,
01/15/29
(a)
........
21
19,035
Williams
Scotsman,
Inc.
(a)
4.63%
,
08/15/28
..................
38
35,939
7.38%
,
10/01/31
..................
81
84,188
1,599,393
Communications
Equipment
—
0.5%
(a)
CommScope
Technologies
LLC,
6.00%,
06/15/25
......................
49
42,615
CommScope,
Inc.
6.00%
,
03/01/26
..................
41
37,515
4.75%
,
09/01/29
..................
24
17,280
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
13
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Communications
Equipment
(continued)
Viasat,
Inc.
5.63%
,
09/15/25
..................
USD
39
$
38,017
5.63%
,
04/15/27
..................
49
46,401
7.50%
,
05/30/31
..................
12
8,695
Viavi
Solutions,
Inc.,
3.75%,
10/01/29
.....
17
14,586
205,109
Construction
&
Engineering
—
0.1%
(a)
Dycom
Industries,
Inc.,
4.50%,
04/15/29
....
31
28,978
MasTec,
Inc.,
4.50%,
08/15/28
..........
10
9,509
Pike
Corp.,
8.63%,
01/31/31
...........
20
21,253
59,740
Consumer
Finance
—
1.0%
Bread
Financial
Holdings,
Inc.,
9.75%,
03/15/29
(a)
.....................
31
32,261
Navient
Corp.,
9.38%,
07/25/30
.........
79
84,513
OneMain
Finance
Corp.
6.63%
,
01/15/28
..................
20
20,064
9.00%
,
01/15/29
..................
101
107,172
7.88%
,
03/15/30
..................
87
89,747
4.00%
,
09/15/30
..................
107
91,576
SLM
Corp.,
3.13%,
11/02/26
...........
41
38,079
463,412
Consumer
Staples
Distribution
&
Retail
—
0.9%
Albertsons
Cos.,
Inc.
(a)
4.63%
,
01/15/27
..................
8
7,742
6.50%
,
02/15/28
..................
44
44,467
3.50%
,
03/15/29
..................
49
43,982
4.88%
,
02/15/30
..................
113
107,511
United
Natural
Foods,
Inc.,
6.75%,
10/15/28
(a)
51
42,361
US
Foods,
Inc.
(a)
4.75%
,
02/15/29
..................
47
44,615
4.63%
,
06/01/30
..................
5
4,638
7.25%
,
01/15/32
..................
67
69,729
Walgreens
Boots
Alliance,
Inc.
3.20%
,
04/15/30
..................
4
3,477
4.80%
,
11/18/44
..................
12
10,094
4.10%
,
04/15/50
..................
20
14,665
393,281
Containers
&
Packaging
—
3.2%
Ardagh
Metal
Packaging
Finance
USA
LLC
(a)
6.00%
,
06/15/27
..................
200
194,154
4.00%
,
09/01/29
..................
200
161,210
Clydesdale
Acquisition
Holdings,
Inc.
(a)
6.63%
,
04/15/29
..................
91
90,927
8.75%
,
04/15/30
..................
93
91,376
Crown
Americas
LLC,
4.25%,
09/30/26
....
68
65,876
Graphic
Packaging
International
LLC,
3.50%,
03/15/28
(a)
.....................
27
24,927
Mauser
Packaging
Solutions
Holding
Co.
(a)
7.88%
,
08/15/26
..................
516
525,676
9.25%
,
04/15/27
..................
9
8,928
Owens-Brockway
Glass
Container,
Inc.,
7.25%,
05/15/31
(a)
.....................
163
166,016
Sealed
Air
Corp.
(a)
4.00%
,
12/01/27
..................
70
65,611
5.00%
,
04/15/29
..................
8
7,679
7.25%
,
02/15/31
..................
16
16,635
1,419,015
Distributors
—
0.2%
(a)
American
Builders
&
Contractors
Supply
Co.,
Inc.,
3.88%,
11/15/29
..............
12
10,787
Resideo
Funding,
Inc.,
4.00%,
09/01/29
....
8
7,153
Security
Par
(000)
Par
(000)
Value
Distributors
(continued)
Ritchie
Bros
Holdings,
Inc.,
7.75%,
03/15/31
.
USD
59
$
61,728
79,668
Diversified
Consumer
Services
—
0.7%
(a)
Sotheby's,
5.88%,
06/01/29
............
200
168,103
Wand
NewCo
3,
Inc.,
7.63%,
01/30/32
.....
134
138,586
306,689
Diversified
REITs
—
0.5%
(a)
HAT
Holdings
I
LLC
3.38%
,
06/15/26
..................
106
99,842
8.00%
,
06/15/27
..................
59
61,519
Iron
Mountain
Information
Management
Services,
Inc.,
5.00%,
07/15/32
........
76
69,409
230,770
Diversified
Telecommunication
Services
—
6.4%
CCO
Holdings
LLC
(a)
5.00%
,
02/01/28
..................
73
67,956
5.38%
,
06/01/29
..................
9
8,239
6.38%
,
09/01/29
..................
168
159,379
4.75%
,
03/01/30
..................
27
23,183
4.25%
,
02/01/31
..................
116
94,731
7.38%
,
03/01/31
..................
155
152,006
4.75%
,
02/01/32
..................
35
28,565
4.25%
,
01/15/34
..................
62
46,801
Frontier
Communications
Holdings
LLC
(a)
5.88%
,
10/15/27
..................
71
68,738
5.00%
,
05/01/28
..................
49
45,482
8.75%
,
05/15/30
..................
224
229,202
8.63%
,
03/15/31
..................
44
44,938
Iliad
Holding
SASU
(a)
6.50%
,
10/15/26
..................
200
198,127
7.00%
,
10/15/28
..................
294
290,975
Level
3
Financing,
Inc.
(a)
10.50%
,
04/15/29
.................
128
130,560
4.88%
,
06/15/29
..................
134
89,445
11.00%
,
11/15/29
.................
102
106,418
10.50%
,
05/15/30
.................
201
205,522
3.88%
,
10/15/30
..................
12
7,080
Lumen
Technologies,
Inc.
(a)
4.13%
,
04/15/29
..................
25
15,530
4.13%
,
04/15/30
..................
25
15,283
Telecom
Italia
Capital
SA
6.38%
,
11/15/33
..................
36
34,058
6.00%
,
09/30/34
..................
93
85,063
7.20%
,
07/18/36
..................
7
6,833
7.72%
,
06/04/38
..................
2
2,003
Uniti
Group
LP,
10.50%,
02/15/28
(a)
.......
224
232,227
Windstream
Escrow
LLC,
7.75%,
08/15/28
(a)
.
15
13,884
Zayo
Group
Holdings,
Inc.
(a)
4.00%
,
03/01/27
..................
433
356,421
6.13%
,
03/01/28
..................
116
81,173
2,839,822
Electric
Utilities
—
1.7%
(a)
Alexander
Funding
Trust
II,
7.47%,
07/31/28
.
100
105,730
NextEra
Energy
Operating
Partners
LP
4.25%
,
09/15/24
..................
233
224,844
7.25%
,
01/15/29
..................
48
49,112
NRG
Energy,
Inc.,
7.00%,
03/15/33
.......
45
48,018
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
249
232,104
PG&E
Corp.,
4.25%,
12/01/27
(d)
.........
114
114,513
774,321
Electrical
Equipment
—
0.2%
Vertiv
Group
Corp.,
4.13%,
11/15/28
(a)
.....
109
101,418
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
14
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Electronic
Equipment,
Instruments
&
Components
—
0.2%
Sensata
Technologies,
Inc.
(a)
4.38%
,
02/15/30
..................
USD
71
$
64,620
3.75%
,
02/15/31
..................
18
15,570
80,190
Entertainment
—
0.3%
(a)
Lions
Gate
Capital
Holdings
LLC,
5.50%,
04/15/29
......................
48
36,722
Live
Nation
Entertainment,
Inc.
4.75%
,
10/15/27
..................
70
66,838
3.75%
,
01/15/28
..................
37
34,230
Playtika
Holding
Corp.,
4.25%,
03/15/29
....
10
8,657
146,447
Financial
Services
—
3.5%
Block,
Inc.
2.75%
,
06/01/26
..................
89
83,703
3.50%
,
06/01/31
..................
258
224,549
Enact
Holdings,
Inc.,
6.50%,
08/15/25
(a)
....
54
53,989
GGAM
Finance
Ltd.
(a)
7.75%
,
05/15/26
..................
10
10,206
8.00%
,
02/15/27
..................
90
92,927
8.00%
,
06/15/28
..................
28
29,241
6.88%
,
04/15/29
..................
50
50,188
MGIC
Investment
Corp.,
5.25%,
08/15/28
...
22
21,371
Nationstar
Mortgage
Holdings,
Inc.
(a)
5.00%
,
02/01/26
..................
194
189,849
6.00%
,
01/15/27
..................
27
26,617
5.13%
,
12/15/30
..................
15
13,609
5.75%
,
11/15/31
..................
40
36,894
7.13%
,
02/01/32
..................
165
163,870
NCR
Atleos
Corp.,
9.50%,
04/01/29
(a)
......
51
54,550
PennyMac
Financial
Services,
Inc.,
7.88%,
12/15/29
(a)
.....................
62
63,708
Rocket
Mortgage
LLC
(a)
2.88%
,
10/15/26
..................
116
107,175
3.88%
,
03/01/31
..................
46
40,075
4.00%
,
10/15/33
..................
8
6,777
Shift4
Payments
LLC,
4.63%,
11/01/26
(a)
....
80
77,348
Verscend
Escrow
Corp.,
9.75%,
08/15/26
(a)
..
208
208,584
1,555,230
Food
Products
—
1.3%
(a)
Chobani
LLC
4.63%
,
11/15/28
..................
173
161,329
7.63%
,
07/01/29
..................
247
250,396
Darling
Ingredients,
Inc.,
6.00%,
06/15/30
...
118
116,939
Fiesta
Purchaser,
Inc.,
7.88%,
03/01/31
....
33
34,079
562,743
Gas
Utilities
—
0.0%
Suburban
Propane
Partners
LP,
5.00%,
06/01/31
(a)
.....................
16
14,587
Ground
Transportation
—
0.6%
(a)
Avis
Budget
Car
Rental
LLC,
8.00%,
02/15/31
52
51,915
GN
Bondco
LLC,
9.50%,
10/15/31
.......
75
74,866
NESCO
Holdings
II,
Inc.,
5.50%,
04/15/29
...
48
45,413
Uber
Technologies,
Inc.,
4.50%,
08/15/29
...
99
93,933
266,127
Health
Care
Equipment
&
Supplies
—
1.9%
Avantor
Funding,
Inc.,
3.88%,
11/01/29
(a)
...
24
21,635
Bausch
+
Lomb
Corp.,
8.38%,
10/01/28
(a)
...
321
332,126
Medline
Borrower
LP
(a)
3.88%
,
04/01/29
..................
30
27,306
6.25%
,
04/01/29
..................
91
91,407
5.25%
,
10/01/29
..................
289
273,154
Neogen
Food
Safety
Corp.,
8.63%,
07/20/30
(a)
46
49,554
Security
Par
(000)
Par
(000)
Value
Health
Care
Equipment
&
Supplies
(continued)
Teleflex,
Inc.
4.63%
,
11/15/27
..................
USD
3
$
2,885
4.25%
,
06/01/28
(a)
.................
44
41,288
839,355
Health
Care
Providers
&
Services
—
3.0%
Acadia
Healthcare
Co.,
Inc.
(a)
5.50%
,
07/01/28
..................
26
25,311
5.00%
,
04/15/29
..................
5
4,751
AHP
Health
Partners,
Inc.,
5.75%,
07/15/29
(a)
.
115
104,650
Community
Health
Systems,
Inc.
(a)
5.63%
,
03/15/27
..................
6
5,522
6.00%
,
01/15/29
..................
157
137,155
5.25%
,
05/15/30
..................
124
101,111
4.75%
,
02/15/31
..................
89
68,686
Encompass
Health
Corp.,
4.63%,
04/01/31
..
18
16,366
HealthEquity,
Inc.,
4.50%,
10/01/29
(a)
......
106
97,800
Legacy
LifePoint
Health
LLC,
4.38%,
02/15/27
(a)
40
38,117
LifePoint
Health,
Inc.
(a)
9.88%
,
08/15/30
..................
35
36,611
11.00%
,
10/15/30
.................
116
123,980
Molina
Healthcare,
Inc.
(a)
4.38%
,
06/15/28
..................
30
28,201
3.88%
,
11/15/30
..................
10
8,890
3.88%
,
05/15/32
..................
8
6,966
Option
Care
Health,
Inc.,
4.38%,
10/31/29
(a)
..
56
51,344
Pediatrix
Medical
Group,
Inc.,
5.38%,
02/15/30
(a)
.....................
72
65,415
Prime
Healthcare
Services,
Inc.,
7.25%,
11/01/25
(a)
.....................
5
4,973
RegionalCare
Hospital
Partners
Holdings,
Inc.,
9.75%,
12/01/26
(a)
................
12
12,016
Surgery
Center
Holdings,
Inc.
(a)
6.75%
,
07/01/25
..................
55
55,006
10.00%
,
04/15/27
.................
76
76,140
7.25%
,
04/15/32
..................
118
118,916
Tenet
Healthcare
Corp.
6.13%
,
06/15/30
..................
20
19,954
6.75%
,
05/15/31
(a)
.................
132
134,406
1,342,287
Health
Care
Technology
—
0.7%
AthenaHealth
Group,
Inc.,
6.50%,
02/15/30
(a)
.
363
332,007
Hotels,
Restaurants
&
Leisure
—
5.1%
1011778
BC
ULC,
4.00%,
10/15/30
(a)
......
62
55,242
Boyne
USA,
Inc.,
4.75%,
05/15/29
(a)
......
112
103,821
Caesars
Entertainment,
Inc.
(a)
4.63%
,
10/15/29
..................
61
55,624
7.00%
,
02/15/30
..................
175
179,635
6.50%
,
02/15/32
..................
191
192,682
Churchill
Downs,
Inc.
(a)
4.75%
,
01/15/28
..................
22
20,943
5.75%
,
04/01/30
..................
187
180,512
6.75%
,
05/01/31
..................
91
91,508
Fertitta
Entertainment
LLC
(a)
4.63%
,
01/15/29
..................
188
172,392
6.75%
,
01/15/30
..................
21
18,856
Hilton
Domestic
Operating
Co.,
Inc.
5.88%
,
04/01/29
(a)
.................
163
163,270
3.75%
,
05/01/29
(a)
.................
18
16,513
4.88%
,
01/15/30
..................
52
49,858
3.63%
,
02/15/32
(a)
.................
10
8,610
6.13%
,
04/01/32
(a)
.................
56
56,238
Hilton
Grand
Vacations
Borrower
Escrow
LLC,
6.63%,
01/15/32
(a)
................
51
51,206
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
15
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
Light
&
Wonder
International,
Inc.
(a)
7.25%
,
11/15/29
..................
USD
44
$
45,169
7.50%
,
09/01/31
..................
60
62,394
Lindblad
Expeditions
Holdings,
Inc.,
9.00%,
05/15/28
(a)
.....................
55
58,160
Lindblad
Expeditions
LLC,
6.75%,
02/15/27
(a)
.
91
91,704
MajorDrive
Holdings
IV
LLC,
6.38%,
06/01/29
(a)
76
71,279
MGM
China
Holdings
Ltd.,
5.88%,
05/15/26
(a)
.
200
197,250
Midwest
Gaming
Borrower
LLC,
4.88%,
05/01/29
(a)
.....................
38
35,186
Six
Flags
Entertainment
Corp.,
7.25%,
05/15/31
(a)
.....................
161
163,111
Station
Casinos
LLC,
6.63%,
03/15/32
(a)
....
44
44,447
Wyndham
Hotels
&
Resorts,
Inc.,
4.38%,
08/15/28
(a)
.....................
71
66,003
Wynn
Resorts
Finance
LLC,
7.13%,
02/15/31
(a)
43
44,501
2,296,114
Household
Durables
—
0.6%
Ashton
Woods
USA
LLC,
4.63%,
08/01/29
(a)
.
25
23,060
Beazer
Homes
USA,
Inc.,
7.50%,
03/15/31
(a)
.
19
19,188
Brookfield
Residential
Properties,
Inc.,
5.00%,
06/15/29
(a)
.....................
97
87,992
Dream
Finders
Homes,
Inc.,
8.25%,
08/15/28
(a)
26
27,142
LGI
Homes,
Inc.,
8.75%,
12/15/28
(a)
.......
25
26,378
New
Home
Co.,
Inc.
(The)
(a)
8.25%
,
10/15/27
(e)
.................
4
3,729
9.25%
,
10/01/29
..................
47
47,235
SWF
Escrow
Issuer
Corp.,
6.50%,
10/01/29
(a)
.
22
16,270
TRI
Pointe
Homes,
Inc.,
5.25%,
06/01/27
...
22
21,488
272,482
Household
Products
—
0.1%
Spectrum
Brands,
Inc.
(a)
5.00%
,
10/01/29
..................
18
17,641
3.88%
,
03/15/31
..................
9
8,669
26,310
Independent
Power
and
Renewable
Electricity
Producers
—
1.4%
Clearway
Energy
Operating
LLC
(a)
4.75%
,
03/15/28
..................
240
228,130
3.75%
,
01/15/32
..................
101
84,909
NextEra
Energy
Partners
LP
(a)(d)
0.00%
,
11/15/25
(f)
.................
32
28,400
2.50%
,
06/15/26
..................
32
28,799
TransAlta
Corp.,
7.75%,
11/15/29
........
238
247,398
617,636
Industrial
Conglomerates
—
1.0%
EMRLD
Borrower
LP,
6.63%,
12/15/30
(a)
....
456
460,374
Insurance
—
10.5%
(a)
Alliant
Holdings
Intermediate
LLC
4.25%
,
10/15/27
..................
172
161,931
6.75%
,
10/15/27
..................
312
307,390
6.75%
,
04/15/28
..................
123
123,868
5.88%
,
11/01/29
..................
216
200,662
7.00%
,
01/15/31
..................
173
174,733
AmWINS
Group,
Inc.
6.38%
,
02/15/29
..................
31
31,167
4.88%
,
06/30/29
..................
33
30,802
Ardonagh
Finco
Ltd.,
7.75%,
02/15/31
.....
200
199,097
Ardonagh
Group
Finance
Ltd.,
8.88%,
02/15/32
200
197,465
AssuredPartners,
Inc.,
7.50%,
02/15/32
....
83
81,560
Howden
UK
Refinance
plc
7.25%
,
02/15/31
..................
372
373,405
8.13%
,
02/15/32
..................
207
208,757
Security
Par
(000)
Par
(000)
Value
Insurance
(continued)
HUB
International
Ltd.
7.25%
,
06/15/30
..................
USD
582
$
598,120
7.38%
,
01/31/32
..................
613
617,128
Jones
Deslauriers
Insurance
Management,
Inc.
8.50%
,
03/15/30
..................
118
123,001
10.50%
,
12/15/30
.................
58
61,203
NFP
Corp.
4.88%
,
08/15/28
..................
66
66,150
6.88%
,
08/15/28
..................
298
301,803
7.50%
,
10/01/30
..................
24
25,284
8.50%
,
10/01/31
..................
45
49,525
Panther
Escrow
Issuer
LLC,
7.13%,
06/01/31
.
600
610,026
Ryan
Specialty
LLC,
4.38%,
02/01/30
.....
27
25,235
USI,
Inc.,
7.50%,
01/15/32
............
99
99,182
4,667,494
IT
Services
—
1.0%
Boost
Newco
Borrower
LLC,
7.50%,
01/15/31
(a)
224
234,486
Central
Parent
LLC,
8.00%,
06/15/29
(a)
.....
93
96,407
Twilio,
Inc.
3.63%
,
03/15/29
..................
18
16,190
3.88%
,
03/15/31
..................
95
82,934
430,017
Leisure
Products
—
0.3%
Acushnet
Co.,
7.38%,
10/15/28
(a)
........
19
19,689
Amer
Sports
Co.,
6.75%,
02/16/31
(a)
......
84
83,354
Mattel,
Inc.,
6.20%,
10/01/40
...........
30
29,962
133,005
Life
Sciences
Tools
&
Services
—
0.7%
(a)
Charles
River
Laboratories
International,
Inc.
4.25%
,
05/01/28
..................
32
30,180
4.00%
,
03/15/31
..................
14
12,510
Fortrea
Holdings,
Inc.,
7.50%,
07/01/30
....
44
45,420
Star
Parent,
Inc.,
9.00%,
10/01/30
........
218
230,711
318,821
Machinery
—
1.4%
Madison
IAQ
LLC
(a)
4.13%
,
06/30/28
..................
30
27,747
5.88%
,
06/30/29
..................
120
109,786
Mueller
Water
Products,
Inc.,
4.00%,
06/15/29
(a)
43
39,002
Terex
Corp.,
5.00%,
05/15/29
(a)
.........
63
59,478
Titan
International,
Inc.,
7.00%,
04/30/28
...
9
8,881
TK
Elevator
Holdco
GmbH,
7.63%,
07/15/28
(a)
200
196,086
TK
Elevator
US
Newco,
Inc.,
5.25%,
07/15/27
(a)
200
193,218
634,198
Media
—
6.2%
Altice
Financing
SA,
5.75%,
08/15/29
(a)
.....
200
160,248
Cable
One,
Inc.
0.00%
,
03/15/26
(d)
(f)
................
22
19,162
1.13%
,
03/15/28
(d)
.................
147
110,338
4.00%
,
11/15/30
(a)
.................
87
67,897
Clear
Channel
Outdoor
Holdings,
Inc.
(a)
5.13%
,
08/15/27
..................
43
40,533
7.75%
,
04/15/28
..................
28
24,523
9.00%
,
09/15/28
..................
218
227,072
7.50%
,
06/01/29
..................
102
84,358
7.88%
,
04/01/30
..................
168
167,018
CSC
Holdings
LLC
(a)
11.25%
,
05/15/28
.................
200
198,189
11.75%
,
01/31/29
.................
200
200,312
4.13%
,
12/01/30
..................
200
143,010
DirecTV
Financing
LLC
(a)
5.88%
,
08/15/27
..................
155
146,636
8.88%
,
02/01/30
..................
34
33,918
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
16
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Media
(continued)
GCI
LLC,
4.75%,
10/15/28
(a)
...........
USD
8
$
7,335
Gray
Television,
Inc.
(a)
5.88%
,
07/15/26
..................
31
30,191
7.00%
,
05/15/27
..................
72
66,962
Hughes
Satellite
Systems
Corp.,
5.25%,
08/01/26
......................
14
11,652
Nexstar
Media,
Inc.,
5.63%,
07/15/27
(a)
.....
18
17,268
Outfront
Media
Capital
LLC
(a)
5.00%
,
08/15/27
..................
111
106,833
4.25%
,
01/15/29
..................
23
20,837
4.63%
,
03/15/30
..................
79
70,850
7.38%
,
02/15/31
..................
58
60,751
Radiate
Holdco
LLC
(a)
4.50%
,
09/15/26
..................
77
61,227
6.50%
,
09/15/28
..................
57
27,185
Sirius
XM
Radio,
Inc.
(a)
3.13%
,
09/01/26
..................
97
90,862
5.00%
,
08/01/27
..................
51
49,066
4.00%
,
07/15/28
..................
12
10,979
Univision
Communications,
Inc.
(a)
6.63%
,
06/01/27
..................
54
52,814
8.00%
,
08/15/28
..................
229
233,296
7.38%
,
06/30/30
..................
37
36,587
Videotron
Ltd.,
3.63%,
06/15/29
(a)
........
5
4,519
Ziggo
Bond
Co.
BV,
5.13%,
02/28/30
(a)
.....
200
171,280
2,753,708
Metals
&
Mining
—
4.3%
(a)
Big
River
Steel
LLC,
6.63%,
01/31/29
.....
681
684,830
Constellium
SE
5.63%
,
06/15/28
..................
250
243,041
3.75%
,
04/15/29
..................
250
224,925
First
Quantum
Minerals
Ltd.,
9.38%,
03/01/29
200
207,476
Novelis
Corp.
3.25%
,
11/15/26
..................
392
365,258
4.75%
,
01/30/30
..................
18
16,607
3.88%
,
08/15/31
..................
207
177,814
1,919,951
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.1%
Starwood
Property
Trust,
Inc.
(a)
4.38%
,
01/15/27
..................
9
8,466
7.25%
,
04/01/29
..................
36
36,286
44,752
Oil,
Gas
&
Consumable
Fuels
—
0.4%
EnLink
Midstream
Partners
LP,
5.60%,
04/01/44
47
41,846
ITT
Holdings
LLC,
6.50%,
08/01/29
(a)
......
98
89,435
New
Fortress
Energy,
Inc.,
6.75%,
09/15/25
(a)
.
32
31,782
163,063
Passenger
Airlines
—
0.9%
(a)
American
Airlines,
Inc.
5.75%
,
04/20/29
..................
128
125,923
8.50%
,
05/15/29
..................
132
139,452
United
Airlines,
Inc.,
4.63%,
04/15/29
......
142
132,060
397,435
Personal
Care
Products
—
0.2%
(a)
Coty,
Inc.,
6.63%,
07/15/30
............
74
75,146
Prestige
Brands,
Inc.,
3.75%,
04/01/31
.....
17
14,801
89,947
Pharmaceuticals
—
0.9%
1375209
BC
Ltd.,
9.00%,
01/30/28
(a)
......
31
30,380
Catalent
Pharma
Solutions,
Inc.
(a)
5.00%
,
07/15/27
..................
37
36,435
3.13%
,
02/15/29
..................
106
101,291
3.50%
,
04/01/30
..................
25
23,810
Security
Par
(000)
Par
(000)
Value
Pharmaceuticals
(continued)
Teva
Pharmaceutical
Finance
Netherlands
III
BV,
3.15%,
10/01/26
..............
USD
211
$
196,688
388,604
Professional
Services
—
0.8%
(a)
AMN
Healthcare,
Inc.
4.63%
,
10/01/27
..................
25
23,745
4.00%
,
04/15/29
..................
73
65,560
CoreLogic,
Inc.,
4.50%,
05/01/28
........
189
169,469
Dun
&
Bradstreet
Corp.
(The),
5.00%,
12/15/29
104
95,998
354,772
Real
Estate
Management
&
Development
—
0.9%
Anywhere
Real
Estate
Group
LLC
Series
AI
,
7.00%
,
04/15/30
...........
61
54,138
7.00%
,
04/15/30
(a)
.................
88
78,013
Cushman
&
Wakefield
US
Borrower
LLC
(a)
6.75%
,
05/15/28
..................
154
152,072
8.88%
,
09/01/31
..................
72
76,087
Howard
Hughes
Corp.
(The),
5.38%,
08/01/28
(a)
62
59,469
419,779
Retail
REITs
—
0.1%
Brookfield
Property
REIT,
Inc.,
4.50%,
04/01/27
(a)
.....................
39
35,597
Semiconductors
&
Semiconductor
Equipment
—
0.7%
(a)
Entegris,
Inc.,
4.75%,
04/15/29
.........
262
251,089
Synaptics,
Inc.,
4.00%,
06/15/29
.........
63
56,700
307,789
Software
—
7.3%
(a)
Boxer
Parent
Co.,
Inc.,
9.13%,
03/01/26
....
79
78,971
Camelot
Finance
SA,
4.50%,
11/01/26
.....
31
29,827
Capstone
Borrower,
Inc.,
8.00%,
06/15/30
...
69
71,597
Central
Parent,
Inc.,
7.25%,
06/15/29
......
113
115,351
Clarivate
Science
Holdings
Corp.
3.88%
,
07/01/28
..................
253
234,074
4.88%
,
07/01/29
..................
200
185,026
Cloud
Software
Group,
Inc.
6.50%
,
03/31/29
..................
679
644,345
9.00%
,
09/30/29
..................
367
351,996
Elastic
NV,
4.13%,
07/15/29
...........
102
91,790
Fair
Isaac
Corp.,
4.00%,
06/15/28
........
127
118,625
Gen
Digital,
Inc.,
6.75%,
09/30/27
........
68
68,974
McAfee
Corp.,
7.38%,
02/15/30
.........
100
91,705
MicroStrategy,
Inc.,
6.13%,
06/15/28
......
102
98,402
Sabre
GLBL,
Inc.
8.63%
,
06/01/27
..................
88
77,222
11.25%
,
12/15/27
.................
2
1,877
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
..
112
109,509
UKG,
Inc.,
6.88%,
02/01/31
............
586
596,974
Veritas
US,
Inc.,
7.50%,
09/01/25
........
57
52,261
ZoomInfo
Technologies
LLC,
3.88%,
02/01/29
240
216,042
3,234,568
Specialized
REITs
—
0.3%
Iron
Mountain,
Inc.,
5.63%,
07/15/32
(a)
.....
24
22,670
SBA
Communications
Corp.
3.88%
,
02/15/27
..................
21
19,973
3.13%
,
02/01/29
..................
101
89,133
131,776
Specialty
Retail
—
1.2%
Arko
Corp.,
5.13%,
11/15/29
(a)
..........
33
27,313
Asbury
Automotive
Group,
Inc.
4.50%
,
03/01/28
..................
2
1,904
5.00%
,
02/15/32
(a)
.................
40
36,242
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
17
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Specialty
Retail
(continued)
Carvana
Co.
(a)(g)
12.00%
,
(
12.00
%
Cash
or
12.00
%
PIK),
12/01/28
.....................
USD
30
$
28,112
13.00%
,
(
13.00
%
Cash
or
13.00
%
PIK),
06/01/30
.....................
18
16,761
14.00%
,
(
14.00
%
Cash
or
14.00
%
PIK),
06/01/31
.....................
45
43,096
GYP
Holdings
III
Corp.,
4.63%,
05/01/29
(a)
...
117
108,772
PetSmart,
Inc.,
7.75%,
02/15/29
(a)
........
250
243,386
Specialty
Building
Products
Holdings
LLC,
6.38%,
09/30/26
(a)
................
14
13,906
519,492
Technology
Hardware,
Storage
&
Peripherals
—
0.6%
Seagate
HDD
Cayman
(a)
8.25%
,
12/15/29
..................
115
123,563
8.50%
,
07/15/31
..................
129
139,406
262,969
Textiles,
Apparel
&
Luxury
Goods
—
0.3%
(a)
Crocs,
Inc.
4.25%
,
03/15/29
..................
34
31,083
4.13%
,
08/15/31
..................
4
3,466
Hanesbrands,
Inc.,
4.88%,
05/15/26
......
23
22,393
Kontoor
Brands,
Inc.,
4.13%,
11/15/29
.....
30
26,927
Levi
Strauss
&
Co.,
3.50%,
03/01/31
......
60
52,638
136,507
Trading
Companies
&
Distributors
—
2.6%
(a)
Beacon
Roofing
Supply,
Inc.
4.13%
,
05/15/29
..................
22
19,954
6.50%
,
08/01/30
..................
56
56,825
Boise
Cascade
Co.,
4.88%,
07/01/30
......
61
56,592
Fortress
Transportation
&
Infrastructure
Investors
LLC
9.75%
,
08/01/27
..................
62
64,197
5.50%
,
05/01/28
..................
6
5,813
7.88%
,
12/01/30
..................
113
118,663
Foundation
Building
Materials,
Inc.,
6.00%,
03/01/29
......................
23
21,150
Herc
Holdings,
Inc.,
5.50%,
07/15/27
......
105
103,130
Imola
Merger
Corp.,
4.75%,
05/15/29
......
57
53,446
SRS
Distribution,
Inc.
4.63%
,
07/01/28
..................
110
110,804
6.13%
,
07/01/29
..................
109
111,153
6.00%
,
12/01/29
..................
120
122,581
United
Rentals
North
America,
Inc.
6.00%
,
12/15/29
..................
132
132,875
6.13%
,
03/15/34
..................
66
66,082
WESCO
Distribution,
Inc.
6.38%
,
03/15/29
..................
49
49,504
6.63%
,
03/15/32
..................
49
49,793
1,142,562
Wireless
Telecommunication
Services
—
1.0%
(a)
Connect
Finco
SARL,
6.75%,
10/01/26
.....
200
196,055
Vmed
O2
UK
Financing
I
plc,
4.75%,
07/15/31
296
255,118
451,173
Total
Corporate
Bonds
—
90
.6
%
(Cost:
$
40,758,631
)
...............................
40,347,035
Security
Par
(000)
Par
(000)
Value
Fixed
Rate
Loan
Interests
Diversified
Telecommunication
Services
—
0.0%
Level
3
Financing,
Inc.,
Term
Loan
B1
,
11.89
%
,
04/15/29
.................
USD
7
$
7,407
Level
3
Financing,
Inc.,
Term
Loan
B2
,
11.89
%
,
04/15/30
(h)
................
8
7,471
14,878
Media
—
0.5%
Clear
Channel
International
BV,
Term
Loan
,
08/12/27
(h)
(i)
......................
216
214,920
Total
Fixed
Rate
Loan
Interests
—
0
.5
%
(Cost:
$
228,270
)
.................................
229,798
Floating
Rate
Loan
Interests
Air
Freight
&
Logistics
—
0.1%
GN
Loanco
LLC,
Term
Loan
B
,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
+
4.50%),
9.83
%
,
12/19/30
(c)
.................
43
42,067
Automobile
Components
—
0.1%
Champions
Holdco,
Inc.,
Term
Loan
,
(3-mo.
CME
Term
SOFR
+
4.75%),
10.07
%
,
02/23/29
(c)
(h)
...............
53
53,133
Chemicals
—
0.1%
(c)
Aruba
Investments
Holdings
LLC,
2nd
Lien
Term
Loan
,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
+
7.75%),
13.18
%
,
11/24/28
(h)
.
12
11,979
Chemours
Co.,
(The),
Term
Loan
B3
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.50%),
8.83
%
,
08/18/28
..................
49
48,905
60,884
Commercial
Services
&
Supplies
—
0.1%
PECF
USS
Intermediate
Holding
III
Corp.,
Term
Loan
,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
+
4.25%),
0.00
%
-
9.82
%
,
12/15/28
(c)
38
28,746
Communications
Equipment
—
0.1%
ViaSat,
Inc.,
Term
Loan
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
4.50%),
9.93
%
,
05/30/30
(c)
.................
51
48,921
Diversified
Consumer
Services
—
0.5%
(c)
Ascend
Learning
LLC,
1st
Lien
Term
Loan
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.50%),
8.93
%
,
12/11/28
.............
20
20,074
Ascend
Learning
LLC,
2nd
Lien
Term
Loan
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
5.75%),
11.18
%
,
12/10/29
............
29
28,483
Wand
Newco
3,
Inc.,
1st
Lien
Term
Loan
,
(1-mo.
CME
Term
SOFR
+
3.75%),
0.00
%
-
9.08
%
,
01/30/31
..................
171
171,400
219,957
Diversified
Telecommunication
Services
—
1.0%
(c)
Altice
France
SA,
Term
Loan
B14
,
(3-mo.
CME
Term
SOFR
+
5.50%),
10.81
%
,
08/15/28
..
186
146,750
Connect
Finco
SARL,
Term
Loan
B
,
09/13/29
(i)
38
37,344
Frontier
Communications
Holdings
LLC,
Term
Loan
B
,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
+
3.75%),
9.19
%
,
10/08/27
.......
103
102,253
Lumen
Technologies,
Inc.,
Term
Loan
,
01/01/28
(h)
(i)
......................
9
7,451
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
18
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Diversified
Telecommunication
Services
(continued)
Radiate
Holdco
LLC,
Term
Loan
B
,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
+
3.25%),
0.00
%
-
8.69
%
,
09/25/26
.................
USD
160
$
133,640
Zayo
Group
Holdings,
Inc.,
Term
Loan
,
(1-mo.
CME
Term
SOFR
+
3.00%),
8.44
%
,
03/09/27
..................
3
2,950
430,388
Entertainment
—
0.1%
Motion
Acquisition
Ltd.,
Facility
Term
Loan
B
,
11/12/29
(c)
(i)
......................
40
39,910
Food
Products
—
0.1%
Chobani
LLC,
Term
Loan
,
(1-mo.
CME
Term
SOFR
+
3.75%),
9.08
%
,
10/25/27
(c)
.....
52
52,129
Health
Care
Equipment
&
Supplies
—
0.2%
Bausch
+
Lomb
Corp.,
Term
Loan
(c)
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.25%),
8.68
%
,
05/10/27
..........
62
60,727
(1-mo.
CME
Term
SOFR
+
4.00%),
9.33
%
,
09/29/28
................
45
44,691
105,418
Health
Care
Providers
&
Services
—
0.1%
(c)
LifePoint
Health,
Inc.,
Term
Loan
,
(3-mo.
CME
Term
SOFR
+
5.50%),
11.09
%
,
11/16/28
..
13
13,323
Surgery
Center
Holdings,
Inc.,
Term
Loan
,
(1-mo.
CME
Term
SOFR
+
3.50%),
8.83
%
,
12/19/30
..................
13
13,081
26,404
Health
Care
Technology
—
1.5%
(c)
Athenahealth
Group,
Inc.,
Term
Loan
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.25%),
8.58
%
,
02/15/29
..................
355
351,355
Verscend
Holding
Corp.,
Term
Loan
B1
,
(1-mo.
CME
Term
SOFR
+
4.00%),
9.44
%
,
08/27/25
..................
333
332,887
684,242
Household
Durables
—
0.2%
SWF
Holdings
I
Corp.,
1st
Lien
Term
Loan
,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
+
4.00%),
9.44
%
,
10/06/28
(c)
...........
72
65,518
Insurance
—
0.3%
(c)
Alliant
Holdings
Intermediate
LLC,
Term
Loan
B6
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.50%),
8.83
%
,
11/06/30
...........
27
26,778
Truist
Insurance
Holdings,
LLC,
Term
Loan
B
,
03/24/31
(i)
.......................
114
113,810
140,588
Life
Sciences
Tools
&
Services
—
0.2%
Star
Parent,
Inc.,
Term
Loan
,
(3-mo.
CME
Term
SOFR
+
4.00%),
9.31
%
,
09/27/30
(c)
.....
84
83,337
Machinery
—
0.5%
(c)
TK
Elevator
Midco
GmbH,
Facility
Term
Loan
B1
,
07/30/27
(i)
....................
183
183,533
WEC
US
Holdings
Ltd.,
Term
Loan
,
(1-mo.
CME
Term
SOFR
+
2.75%),
8.08
%
,
01/27/31
...
32
31,953
215,486
Security
Par
(000)
Par
(000)
Value
Media
—
0.6%
(c)
Clear
Channel
Outdoor
Holdings,
Inc.,
Term
Loan
B
,
(1-mo.
CME
Term
SOFR
+
3.50%),
9.07
%
,
08/21/26
..................
USD
153
$
152,591
DirecTV
Financing
LLC,
Term
Loan
B
,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
+
5.25%),
10.69
%
,
08/02/29
.................
108
107,341
259,932
Passenger
Airlines
—
0.0%
AAdvantage
Loyalty
IP
Ltd.,
Term
Loan
,
(3-mo.
CME
Term
SOFR
at
0.75%
Floor
+
4.75%),
10.33
%
,
04/20/28
(c)
................
2
1,718
Professional
Services
—
0.0%
CoreLogic,
Inc.,
1st
Lien
Term
Loan
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.50%),
8.94
%
,
06/02/28
(c)
.................
14
13,518
Real
Estate
Management
&
Development
—
0.0%
Cushman
&
Wakefield
US
Borrower
LLC,
Term
Loan
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
4.00%),
9.33
%
,
01/31/30
(c)
(h)
.....
18
17,913
Software
—
1.1%
(c)
Boxer
Parent
Co.,
Inc.,
Term
Loan
,
(1-mo.
CME
Term
SOFR
+
4.25%),
9.58
%
,
12/29/28
...
164
164,906
Cloud
Software
Group,
Inc.,
1st
Lien
Term
Loan
,
03/21/31
(i)
..................
81
80,443
Cloud
Software
Group,
Inc.,
1st
Lien
Term
Loan
B
,
(3-mo.
CME
Term
SOFR
at
0.50%
Floor
+
4.50%),
9.91
%
,
03/30/29
............
156
155,411
Genesys
Cloud
Services
Holdings
I
LLC,
Term
Loan
,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
+
3.75%),
9.19
%
,
12/01/27
.......
55
55,172
McAfee
Corp.,
Term
Loan
B1
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.75%),
9.18
%
,
03/01/29
..................
36
36,238
Sabre
GLBL,
Inc.,
Term
Loan
B1
,
(1-mo.
CME
Term
SOFR
at
0.50%
Floor
+
3.50%),
8.94
%
,
12/17/27
..................
7
5,704
Sabre
GLBL,
Inc.,
Term
Loan
B2
,
(1-mo.
LIBOR
USD
at
0.50%
Floor
+
3.50%),
8.94
%
,
12/17/27
..................
11
8,984
506,858
Trading
Companies
&
Distributors
—
0.1%
Foundation
Building
Materials,
Inc.,
Term
Loan
,
(3-mo.
CME
Term
SOFR
+
4.00%),
9.31
%
,
01/29/31
(c)
.................
19
19,067
Total
Floating
Rate
Loan
Interests
—
7
.0
%
(Cost:
$
3,167,181
)
...............................
3,116,134
Preferred
Securities
Capital
Trusts
—
0.4%
Electric
Utilities
—
0.2%
NRG
Energy,
Inc.
,
(5-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
5.92%),
10.25
%
(a)
(b)
(c)
...............
103
110,489
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
19
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the six
months
ended
March
31,
2024
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
Independent
Power
and
Renewable
Electricity
Producers
—
0.2%
Vistra
Corp.
,
(5-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
5.74%),
7.00
%
(a)
(b)
(c)
......................
USD
67
$
66,340
Total
Preferred
Securities
—
0
.4
%
(Cost:
$
169,910
)
.................................
176,829
Total
Long-Term
Investments
—
98.9%
(Cost:
$
44,490,581
)
...............................
44,048,528
Security
Shares
Shares
Value
Short-Term
Securities
Money
Market
Funds
—
3.6%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
,
5.19
%
(j)
(k)
...................
1,594,611
$
1,594,611
Total
Short-Term
Securities
—
3
.6
%
(Cost:
$
1,594,611
)
...............................
1,594,611
Total
Investments
—
102
.5
%
(Cost:
$
46,085,192
)
...............................
45,643,139
Liabilities
in
Excess
of
Other
Assets
—
(
2.5
)
%
.............
(
1,101,760
)
Net
Assets
—
100.0%
...............................
$
44,541,379
(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)
Perpetual
security
with
no
stated
maturity
date.
(c)
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.
(d)
Convertible
security.
(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)
Zero-coupon
bond.
(g)
Payment-in-kind
security
which
may
pay
interest/dividends
in
additional
par/shares
and/or
in
cash.
Rates
shown
are
the
current
rate
and
possible
payment
rates.
(h)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(i)
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.
(j)
Affiliate
of
the
Fund.
(k)
Annualized
7-day
yield
as
of
period
end.
Affiliated
Issuer
Value
at
09/30/23
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
03/31/24
Shares
Held
at
03/31/24
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
.
$
84,681
$
1,509,930
(a)
$
—
$
—
$
—
$
1,594,611
1,594,611
$
23,391
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
For
purposes
of
this
report,
industry
and
sector
sub-classifications
may
differ
from
those
utilized
by
the
Fund
for
compliance
purposes.
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
20
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.
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.
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
06/28/24
$
642
$
1,904
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
1,904
$
—
$
1,904
(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
March
31,
2024,
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
.......................
$
—
$
—
$
(
533
)
$
—
$
(
1,995
)
$
—
$
(
2,528
)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
c
ontracts
.......................
$
—
$
—
$
—
$
—
$
6,806
$
—
$
6,806
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
647,368
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Common
Stocks
.........................................
$
178,732
$
—
$
—
$
178,732
Corporate
Bonds
........................................
—
40,347,035
—
40,347,035
Fixed
Rate
Loan
Interests
Diversified
Telecommunication
Services
........................
—
7,407
7,471
14,878
Media
...............................................
—
—
214,920
214,920
Floating
Rate
Loan
Interests
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
High
Yield
Bond
Fund
Schedules
of
Investments
21
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Air
Freight
&
Logistics
....................................
$
—
$
42,067
$
—
$
42,067
Automobile
Components
..................................
—
—
53,133
53,133
Chemicals
............................................
—
48,905
11,979
60,884
Commercial
Services
&
Supplies
.............................
—
28,746
—
28,746
Communications
Equipment
................................
—
48,921
—
48,921
Diversified
Consumer
Services
..............................
—
219,957
—
219,957
Diversified
Telecommunication
Services
........................
—
422,937
7,451
430,388
Entertainment
.........................................
—
39,910
—
39,910
Food
Products
.........................................
—
52,129
—
52,129
Health
Care
Equipment
&
Supplies
...........................
—
105,418
—
105,418
Health
Care
Providers
&
Services
............................
—
26,404
—
26,404
Health
Care
Technology
..................................
—
684,242
—
684,242
Household
Durables
.....................................
—
65,518
—
65,518
Insurance
............................................
—
140,588
—
140,588
Life
Sciences
Tools
&
Services
..............................
—
83,337
—
83,337
Machinery
............................................
—
215,486
—
215,486
Media
...............................................
—
259,932
—
259,932
Passenger
Airlines
......................................
—
1,718
—
1,718
Professional
Services
....................................
—
13,518
—
13,518
Real
Estate
Management
&
Development
.......................
—
—
17,913
17,913
Software
.............................................
—
506,858
—
506,858
Trading
Companies
&
Distributors
............................
—
19,067
—
19,067
Preferred
Securities
.......................................
—
176,829
—
176,829
Short-Term
Securities
Money
Market
Funds
......................................
1,594,611
—
—
1,594,611
$
1,773,343
$
43,556,929
$
312,867
$
45,643,139
Derivative
Financial
Instruments
(a)
Assets
Interest
rate
contracts
.......................................
$
1,904
$
—
$
—
$
1,904
(a)
Derivative
financial
instruments
are
futures
contracts.
Futures
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
Fair
Value
Hierarchy
as
of Period
End
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
22
(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
at
1.07%
Floor
+
1.33%),
6.65%,
04/20/33
(a)
(b)
.....
USD
250
$
250,055
Anchorage
Capital
CLO
3-R
Ltd.,
Series
2014-
3RA,
Class
A,
(3-mo.
CME
Term
SOFR
at
1.05%
Floor
+
1.31%),
6.63%,
01/28/31
(a)
(b)
175
174,800
Ares
LVI
CLO
Ltd.,
Series
2020-56A,
Class
AR,
(3-mo.
CME
Term
SOFR
at
1.16%
Floor
+
1.42%),
6.75%,
10/25/34
(a)
(b)
..........
250
250,186
BA
Credit
Card
Trust,
Series
2023-A2,
Class
A2,
4.98%,
11/15/28
................
72
72,173
Barings
CLO
Ltd.,
Series
2019-3A,
Class
A1R,
(3-mo.
CME
Term
SOFR
at
1.07%
Floor
+
1.33%),
6.65%,
04/20/31
(a)
(b)
..........
250
250,164
BMW
Vehicle
Owner
Trust,
Series
2022-A,
Class
A3,
3.21%,
08/25/26
...........
188
185,385
Capital
One
Multi-Asset
Execution
Trust
Series
2022-A2,
Class
A,
3.49%,
05/15/27
.
24
23,518
Series
2023-A1,
Class
A,
4.42%,
05/15/28
.
111
109,609
Chesapeake
Funding
II
LLC,
Series
2023-2A,
Class
A1,
6.16%,
10/15/35
(b)
..........
116
116,509
CIFC
Funding
Ltd.,
Series
2021-5A,
Class
A,
(3-mo.
CME
Term
SOFR
at
1.14%
Floor
+
1.40%),
6.72%,
07/15/34
(a)
(b)
..........
250
250,478
CNH
Equipment
Trust,
Series
2024-A,
Class
A3,
4.77%,
06/15/29
...............
51
50,307
College
Avenue
Student
Loans
LLC
(a)(b)
Series
2021-C,
Class
A1,
(1-mo.
CME
Term
SOFR
+
1.01%),
6.34%,
07/26/55
....
69
67,399
Series
2023-A,
Class
A1,
(SOFR
30
day
Average
at
1.90%
Floor
+
1.90%),
7.22%,
05/25/55
.....................
89
89,997
Enterprise
Fleet
Financing
LLC
(b)
Series
2022-4,
Class
A2,
5.76%,
10/22/29
.
169
169,544
Series
2023-1,
Class
A2,
5.51%,
01/22/29
.
76
76,310
Series
2023-2,
Class
A2,
5.56%,
04/22/30
.
140
139,651
Series
2023-3,
Class
A2,
6.40%,
03/20/30
.
80
81,224
Series
2024-1,
Class
A2,
5.23%,
03/20/30
.
50
49,917
Ford
Credit
Auto
Owner
Trust
Series
2022-B,
Class
A4,
3.93%,
08/15/27
.
44
43,066
Series
2023-1,
Class
A,
4.85%,
08/15/35
(b)
.
145
144,169
Series
2023-2,
Class
A,
5.28%,
02/15/36
(b)
.
170
172,005
Series
2024-1,
Class
A,
4.87%,
08/15/36
(b)
.
130
129,734
Ford
Credit
Floorplan
Master
Owner
Trust
A
(b)
Series
2023-1,
Class
A1,
4.92%,
05/15/28
.
155
154,236
Series
2023-1,
Class
A2,
(SOFR
30
day
Average
+
1.25%),
6.57%,
05/15/28
(a)
..
100
101,455
FS
Rialto
Issuer
LLC,
Series
2022-FL5,
Class
A,
(1-mo.
CME
Term
SOFR
at
2.30%
Floor
+
2.30%),
7.63%,
06/19/37
(a)
(b)
..........
100
99,999
GM
Financial
Consumer
Automobile
Receivables
Trust,
Series
2022-3,
Class
A3,
3.64%,
04/16/27
..................
54
53,135
GM
Financial
Revolving
Receivables
Trust
(b)
Series
2023-2,
Class
A,
5.77%,
08/11/36
..
111
114,593
Series
2024-1,
Class
A,
4.98%,
12/11/36
..
33
33,140
GoodLeap
Sustainable
Home
Solutions
Trust
(b)
Series
2021-3CS,
Class
A,
2.10%,
05/20/48
147
115,174
Series
2021-5CS,
Class
A,
2.31%,
10/20/48
37
29,636
Series
2022-1GS,
Class
A,
2.70%,
01/20/49
40
33,045
Series
2022-2CS,
Class
A,
4.00%,
04/20/49
22
19,385
Series
2022-3CS,
Class
A,
4.95%,
07/20/49
29
27,461
Honda
Auto
Receivables
Owner
Trust,
Series
2023-1,
Class
A3,
5.04%,
04/21/27
......
65
64,832
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Hyundai
Auto
Receivables
Trust,
Series
2022-
B,
Class
A3,
3.72%,
11/16/26
..........
USD
55
$
54,261
John
Deere
Owner
Trust
Series
2023-B,
Class
A3,
5.18%,
03/15/28
.
34
34,006
Series
2024-A,
Class
A3,
4.96%,
11/15/28
.
84
83,987
Loanpal
Solar
Loan
Ltd.,
Series
2021-1GS,
Class
A,
2.29%,
01/20/48
(b)
...........
122
98,139
MMAF
Equipment
Finance
LLC,
Series
2024-A,
Class
A3,
4.95%,
07/14/31
(b)
..........
16
16,032
Mosaic
Solar
Loan
Trust,
Series
2021-1A,
Class
A,
1.51%,
12/20/46
(b)
...............
83
68,389
Mosaic
Solar
Loans
LLC,
Series
2017-2A,
Class
C,
2.00%,
06/22/43
(b)
...........
3
2,655
Navient
Private
Education
Refi
Loan
Trust
(b)
Series
2020-CA,
Class
A2B,
(1-mo.
CME
Term
SOFR
+
1.71%),
7.04%,
11/15/68
(a)
162
163,453
Series
2021-CA,
Class
A,
1.06%,
10/15/69
160
140,460
Series
2021-EA,
Class
A,
0.97%,
12/16/69
.
82
70,657
Series
2021-GA,
Class
A,
1.58%,
04/15/70
85
74,671
Series
2022-A,
Class
A,
2.23%,
07/15/70
..
112
99,061
Series
2022-BA,
Class
A,
4.16%,
10/15/70
.
97
92,261
Navistar
Financial
Dealer
Note
Master
Owner
Trust
II,
Series
2023-1,
Class
A,
6.18%,
08/25/28
(b)
......................
18
18,141
Nelnet
Student
Loan
Trust
(b)
Series
2021-DA,
Class
AFX,
1.63%,
04/20/62
.....................
83
75,472
Series
2023-PL1A,
Class
A1B,
7.15%,
11/25/53
.....................
89
88,627
Neuberger
Berman
Loan
Advisers
CLO
26
Ltd.,
Series
2017-26A,
Class
AR,
(3-mo.
CME
Term
SOFR
at
0.92%
Floor
+
1.18%),
6.48%,
10/18/30
(a)
(b)
................
235
234,909
Octagon
Investment
Partners
XV
Ltd.,
Series
2013-1A,
Class
A1RR,
(3-mo.
CME
Term
SOFR
at
0.97%
Floor
+
1.23%),
6.54%,
07/19/30
(a)
(b)
.....................
207
206,789
OneMain
Financial
Issuance
Trust
(b)
Series
2023-1A,
Class
A,
5.50%,
06/14/38
.
100
101,496
Series
2023-2A,
Class
A2,
(SOFR
30
day
Average
+
1.50%),
6.82%,
09/15/36
(a)
..
120
121,918
PFS
Financing
Corp.,
Series
2023-A,
Class
A,
5.80%,
03/15/28
(b)
.................
125
126,334
Porsche
Financial
Auto
Securitization
Trust,
Series
2023-1A,
Class
A3,
4.81%,
09/22/28
(b)
......................
125
124,299
Prodigy
Finance
DAC,
Series
2021-1A,
Class
A,
(1-mo.
CME
Term
SOFR
+
1.36%),
6.69%,
07/25/51
(a)
(b)
.....................
56
56,006
Romark
CLO
II
Ltd.,
Series
2018-2A,
Class
A1,
(3-mo.
CME
Term
SOFR
at
1.18%
Floor
+
1.44%),
6.76%,
07/25/31
(a)
(b)
..........
220
220,918
Santander
Drive
Auto
Receivables
Trust,
Series
2023-5,
Class
A3,
6.02%,
09/15/28
......
95
96,007
SMB
Private
Education
Loan
Trust
(a)(b)
Series
2022-B,
Class
A1B,
(SOFR
30
day
Average
+
1.45%),
6.77%,
02/16/55
...
135
135,497
Series
2023-B,
Class
A1B,
(SOFR
30
day
Average
at
1.80%
Floor
+
1.80%),
7.12%,
10/16/56
.....................
89
90,470
Series
2024-A,
Class
A1B,
(SOFR
30
day
Average
at
1.45%
Floor
+
1.45%),
6.77%,
03/15/56
.....................
120
120,492
SoFi
Personal
Loan
Trust,
6.00%,
11/12/30
(b)
86
86,288
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
23
(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
109
$
105,169
Series
2019-B,
Class
A2FX,
3.09%,
08/17/48
.....................
27
25,490
SoFi
Professional
Loan
Program
Trust
(b)
Series
2020-A,
Class
A2FX,
2.54%,
05/15/46
.....................
49
45,640
Series
2021-B,
Class
AFX,
1.14%,
02/15/47
99
84,473
Sunnova
Sol
IV
Issuer
LLC,
Series
2022-A,
Class
A,
2.79%,
02/22/49
(b)
...........
87
78,316
Toyota
Auto
Loan
Extended
Note
Trust,
Series
2023-1A,
Class
A,
4.93%,
06/25/36
(b)
....
100
100,155
Trestles
CLO
III
Ltd.,
Series
2020-3A,
Class
A1,
(3-mo.
CME
Term
SOFR
at
1.33%
Floor
+
1.59%),
6.91%,
01/20/33
(a)
(b)
..........
250
250,028
Trestles
CLO
IV
Ltd.,
Series
2021-4A,
Class
A,
(3-mo.
CME
Term
SOFR
at
1.17%
Floor
+
1.43%),
6.75%,
07/21/34
(a)
(b)
..........
250
250,000
Whitebox
CLO
II
Ltd.,
Series
2020-2A,
Class
A1R,
(3-mo.
CME
Term
SOFR
at
1.22%
Floor
+
1.48%),
6.80%,
10/24/34
(a)
(b)
.....
250
249,875
Total
Asset-Backed
Securities
—
16
.9
%
(Cost:
$
7,964,199
)
...............................
7,833,132
Corporate
Bonds
Aerospace
&
Defense
—
0.2%
(b)
Bombardier,
Inc.
7.13%
,
06/15/26
..................
14
14,202
7.88%
,
04/15/27
..................
9
9,006
8.75%
,
11/15/30
..................
10
10,678
7.25%
,
07/01/31
..................
5
5,010
TransDigm,
Inc.
6.75%
,
08/15/28
..................
24
24,317
6.38%
,
03/01/29
..................
41
41,127
104,340
Automobile
Components
—
0.2%
(b)
Champions
Financing,
Inc.,
8.75%,
02/15/29
.
7
7,334
Clarios
Global
LP
6.25%
,
05/15/26
..................
45
44,977
6.75%
,
05/15/28
..................
13
13,177
Phinia,
Inc.,
6.75%,
04/15/29
...........
3
3,029
68,517
Automobiles
—
0.5%
(b)
BMW
US
Capital
LLC,
5.05%,
08/11/28
....
100
100,789
Nissan
Motor
Acceptance
Co.
LLC,
2.00%,
03/09/26
......................
165
152,788
253,577
Banks
—
7.2%
Banco
de
Sabadell
SA,
(1-Year
EUR
Swap
Annual
+
1.60%),
4.00%,
01/15/30
(a)
(c)
....
EUR
100
109,324
Bank
of
America
Corp.
(a)
(1-day
SOFR
+
0.91%),
0.98%
,
09/25/25
.
USD
200
195,366
(3-mo.
CME
Term
SOFR
+
1.13%),
2.46%
,
10/22/25
.....................
200
196,406
(1-day
SOFR
+
0.65%),
1.53%
,
12/06/25
.
240
233,255
(1-day
SOFR
+
1.57%),
5.82%
,
09/15/29
.
93
95,357
Barclays
plc,
(1-Year
EUR
Swap
Annual
+
1.75%),
4.92%,
08/08/30
(a)
(c)
..........
EUR
100
112,630
Citigroup,
Inc.
(a)
(1-day
SOFR
+
0.53%),
1.28%
,
11/03/25
.
USD
35
34,047
(1-day
SOFR
+
1.53%),
3.29%
,
03/17/26
.
260
254,092
(1-day
SOFR
+
1.55%),
5.61%
,
09/29/26
.
110
110,175
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
(1-day
SOFR
+
0.77%),
1.46%
,
06/09/27
.
USD
60
$
55,112
(3-mo.
EURIBOR
+
1.25%),
3.71%
,
09/22/28
(c)
....................
EUR
100
108,593
HSBC
Holdings
plc
(a)
(3-mo.
CME
Term
SOFR
+
1.40%),
2.63%
,
11/07/25
.....................
USD
200
196,074
(1-day
SOFR
+
1.93%),
2.10%
,
06/04/26
.
200
191,810
JPMorgan
Chase
&
Co.
(a)
(3-mo.
CME
Term
SOFR
+
1.51%),
3.96%
,
01/29/27
.....................
86
83,947
(1-day
SOFR
+
1.33%),
6.07%
,
10/22/27
.
105
107,134
(3-mo.
CME
Term
SOFR
+
1.60%),
3.78%
,
02/01/28
.....................
215
207,054
(1-day
SOFR
+
1.45%),
5.30%
,
07/24/29
.
61
61,453
KBC
Group
NV,
(3-mo.
EURIBOR
+
1.30%),
4.25%,
11/28/29
(a)
(c)
...............
EUR
100
110,445
Royal
Bank
of
Canada,
6.00%,
11/01/27
....
USD
121
125,055
Toronto-Dominion
Bank
(The),
1.25%,
12/13/24
335
325,219
Truist
Financial
Corp.
(a)
(1-day
SOFR
+
2.05%),
6.05%
,
06/08/27
.
190
192,564
(1-day
SOFR
+
1.62%),
5.44%
,
01/24/30
.
20
19,977
US
Bancorp,
(1-day
SOFR
+
1.56%),
5.38%,
01/23/30
(a)
.....................
35
35,155
Westpac
Banking
Corp.,
4.18%,
05/22/28
(b)
..
200
195,482
3,355,726
Biotechnology
—
1.4%
Amgen,
Inc.,
5.15%,
03/02/28
..........
140
140,897
Gilead
Sciences,
Inc.
3.70%
,
04/01/24
..................
385
385,000
2.95%
,
03/01/27
..................
110
104,588
630,485
Broadline
Retail
—
0.1%
(b)
Go
Daddy
Operating
Co.
LLC,
3.50%,
03/01/29
8
7,215
Match
Group
Holdings
II
LLC,
4.63%,
06/01/28
19
17,931
25,146
Building
Products
—
0.2%
Advanced
Drainage
Systems,
Inc.
(b)
5.00%
,
09/30/27
..................
8
7,761
6.38%
,
06/15/30
..................
11
11,057
Carrier
Global
Corp.,
2.24%,
02/15/25
.....
36
34,916
Standard
Industries,
Inc.
(b)
4.75%
,
01/15/28
..................
20
19,087
4.38%
,
07/15/30
..................
3
2,696
75,517
Capital
Markets
—
3.9%
Aretec
Group,
Inc.,
10.00%,
08/15/30
(b)
....
5
5,462
Charles
Schwab
Corp.
(The),
5.88%,
08/24/26
53
53,883
Credit
Suisse
AG,
5.00%,
07/09/27
.......
250
247,722
Deutsche
Bank
AG,
(1-day
SOFR
+
2.58%),
3.96%,
11/26/25
(a)
................
150
147,952
Goldman
Sachs
Group,
Inc.
(The)
(a)
(1-day
SOFR
+
1.51%),
4.39%
,
06/15/27
.
155
152,005
(1-day
SOFR
+
1.11%),
2.64%
,
02/24/28
.
156
145,296
Morgan
Stanley
(a)
(1-day
SOFR
+
0.56%),
1.16%
,
10/21/25
.
275
267,765
(3-mo.
EURIBOR
+
0.83%),
1.34%
,
10/23/26
.....................
EUR
100
103,940
(1-day
SOFR
+
1.73%),
5.12%
,
02/01/29
.
USD
250
249,390
(1-day
SOFR
+
1.63%),
5.45%
,
07/20/29
.
70
70,614
Nasdaq,
Inc.,
5.35%,
06/28/28
..........
100
101,290
State
Street
Corp.,
(1-day
SOFR
+
1.35%),
5.75%,
11/04/26
(a)
................
70
70,469
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
24
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Capital
Markets
(continued)
UBS
Group
AG,
(1-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
0.85%),
1.49%,
08/10/27
(a)
(b)
..........
USD
200
$
181,860
1,797,648
Chemicals
—
0.2%
Chemours
Co.
(The)
(b)
5.75%
,
11/15/28
..................
2
1,844
4.63%
,
11/15/29
..................
2
1,724
Element
Solutions,
Inc.,
3.88%,
09/01/28
(b)
..
45
41,281
HB
Fuller
Co.
4.00%
,
02/15/27
..................
13
12,410
4.25%
,
10/15/28
..................
7
6,487
WR
Grace
Holdings
LLC
(b)
4.88%
,
06/15/27
..................
8
7,603
5.63%
,
08/15/29
..................
15
13,423
84,772
Commercial
Services
&
Supplies
—
0.9%
ADT
Security
Corp.
(The),
4.13%,
08/01/29
(b)
.
8
7,330
Allied
Universal
Holdco
LLC
(b)
6.63%
,
07/15/26
..................
14
13,991
7.88%
,
02/15/31
..................
33
33,422
APX
Group,
Inc.,
6.75%,
02/15/27
(b)
.......
8
8,033
Aramark
Services,
Inc.,
5.00%,
02/01/28
(b)
...
19
18,338
Covanta
Holding
Corp.,
4.88%,
12/01/29
(b)
..
5
4,481
Elis
SA,
3.75%,
03/21/30
(c)
............
EUR
100
107,379
Garda
World
Security
Corp.
(b)
4.63%
,
02/15/27
..................
USD
7
6,707
7.75%
,
02/15/28
..................
6
6,153
GFL
Environmental,
Inc.
(b)
4.00%
,
08/01/28
..................
7
6,452
6.75%
,
01/15/31
..................
11
11,273
Legends
Hospitality
Holding
Co.
LLC,
5.00%,
02/01/26
(b)
.....................
6
5,944
Neptune
Bidco
US,
Inc.,
9.29%,
04/15/29
(b)
..
4
3,782
Prime
Security
Services
Borrower
LLC,
6.25%,
01/15/28
(b)
.....................
12
11,755
Republic
Services,
Inc.,
3.38%,
11/15/27
....
150
142,567
Williams
Scotsman,
Inc.,
4.63%,
08/15/28
(b)
..
17
16,078
403,685
Communications
Equipment
—
0.1%
(b)
CommScope,
Inc.,
6.00%,
03/01/26
.......
8
7,320
Viasat,
Inc.,
5.63%,
04/15/27
...........
15
14,204
Viavi
Solutions,
Inc.,
3.75%,
10/01/29
.....
2
1,716
23,240
Consumer
Finance
—
1.8%
American
Express
Co.
2.55%
,
03/04/27
..................
190
177,453
(1-day
SOFR
+
1.00%),
5.10%
,
02/16/28
(a)
20
19,969
Bread
Financial
Holdings,
Inc.,
9.75%,
03/15/29
(b)
.....................
3
3,122
General
Motors
Financial
Co.,
Inc.
3.50%
,
11/07/24
..................
100
98,697
6.05%
,
10/10/25
..................
100
100,740
5.40%
,
05/08/27
..................
60
60,157
John
Deere
Capital
Corp.
5.15%
,
09/08/26
..................
65
65,367
4.95%
,
07/14/28
..................
35
35,264
OneMain
Finance
Corp.
6.88%
,
03/15/25
..................
2
2,021
7.13%
,
03/15/26
..................
7
7,127
9.00%
,
01/15/29
..................
7
7,428
7.88%
,
03/15/30
..................
7
7,221
SLM
Corp.,
3.13%,
11/02/26
...........
7
6,501
Synchrony
Financial,
4.88%,
06/13/25
.....
125
123,140
Security
Par
(000)
Par
(000)
Value
Consumer
Finance
(continued)
Toyota
Motor
Credit
Corp.,
5.40%,
11/10/25
..
USD
100
$
100,504
814,711
Consumer
Staples
Distribution
&
Retail
—
0.1%
(b)
Albertsons
Cos.,
Inc.
3.25%
,
03/15/26
..................
4
3,815
5.88%
,
02/15/28
..................
34
33,661
6.50%
,
02/15/28
..................
3
3,032
United
Natural
Foods,
Inc.,
6.75%,
10/15/28
.
6
4,983
US
Foods,
Inc.
6.88%
,
09/15/28
..................
10
10,237
4.75%
,
02/15/29
..................
2
1,898
57,626
Containers
&
Packaging
—
0.3%
Clydesdale
Acquisition
Holdings,
Inc.,
6.63%,
04/15/29
(b)
.....................
10
9,992
Crown
Americas
LLC,
4.25%,
09/30/26
....
30
29,063
Graphic
Packaging
International
LLC,
3.50%,
03/15/28
(b)
.....................
13
12,002
Mauser
Packaging
Solutions
Holding
Co.,
7.88%,
08/15/26
(b)
................
47
47,881
Owens-Brockway
Glass
Container,
Inc.,
6.63%,
05/13/27
(b)
.....................
8
8,005
Sealed
Air
Corp.
(b)
4.00%
,
12/01/27
..................
20
18,746
6.13%
,
02/01/28
..................
3
3,006
128,695
Diversified
REITs
—
0.2%
HAT
Holdings
I
LLC
(b)
3.38%
,
06/15/26
..................
13
12,245
8.00%
,
06/15/27
..................
5
5,213
Prologis
LP,
4.88%,
06/15/28
...........
85
85,092
102,550
Diversified
Telecommunication
Services
—
0.7%
CCO
Holdings
LLC
(b)
5.13%
,
05/01/27
..................
15
14,292
5.00%
,
02/01/28
..................
19
17,687
6.38%
,
09/01/29
..................
12
11,384
Frontier
Communications
Holdings
LLC
(b)
5.88%
,
10/15/27
..................
17
16,458
5.00%
,
05/01/28
..................
7
6,498
8.75%
,
05/15/30
..................
6
6,139
Level
3
Financing,
Inc.
(b)
10.50%
,
04/15/29
.................
12
12,240
4.88%
,
06/15/29
..................
8
5,340
11.00%
,
11/15/29
.................
7
7,247
10.50%
,
05/15/30
.................
9
9,202
3.88%
,
10/15/30
..................
1
590
Uniti
Group
LP,
10.50%,
02/15/28
(b)
.......
9
9,331
Verizon
Communications,
Inc.
2.10%
,
03/22/28
..................
190
171,050
4.33%
,
09/21/28
..................
18
17,599
Zayo
Group
Holdings,
Inc.,
4.00%,
03/01/27
(b)
47
38,688
343,745
Electric
Utilities
—
2.0%
Eurogrid
GmbH,
3.92%,
02/01/34
(c)
.......
EUR
100
109,943
Eversource
Energy,
5.45%,
03/01/28
......
USD
55
55,679
Exelon
Corp.,
5.15%,
03/15/28
..........
150
150,367
NextEra
Energy
Capital
Holdings,
Inc.
4.20%
,
06/20/24
..................
230
229,204
6.05%
,
03/01/25
..................
75
75,285
4.90%
,
02/28/28
..................
50
49,843
NextEra
Energy
Operating
Partners
LP
(b)
4.25%
,
07/15/24
..................
13
12,885
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
25
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Electric
Utilities
(continued)
7.25%
,
01/15/29
..................
USD
4
$
4,093
NRG
Energy,
Inc.,
5.75%,
01/15/28
.......
29
28,840
Pacific
Gas
&
Electric
Co.,
6.10%,
01/15/29
..
85
87,590
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
(b)
.....................
46
42,879
Texas
Electric
Market
Stabilization
Funding
N
LLC,
Series
A-1,
4.27%,
08/01/34
(b)
.....
91
87,595
934,203
Electrical
Equipment
—
0.0%
(b)
Sensata
Technologies
BV,
4.00%,
04/15/29
..
3
2,739
Vertiv
Group
Corp.,
4.13%,
11/15/28
......
20
18,609
21,348
Electronic
Equipment,
Instruments
&
Components
—
0.0%
Sensata
Technologies,
Inc.,
4.38%,
02/15/30
(b)
18
16,383
Entertainment
—
0.1%
(b)
Lions
Gate
Capital
Holdings
LLC,
5.50%,
04/15/29
......................
3
2,295
Live
Nation
Entertainment,
Inc.
6.50%
,
05/15/27
..................
2
2,022
4.75%
,
10/15/27
..................
13
12,413
3.75%
,
01/15/28
..................
23
21,278
38,008
Financial
Services
—
0.9%
Block,
Inc.,
2.75%,
06/01/26
...........
29
27,274
Enact
Holdings,
Inc.,
6.50%,
08/15/25
(b)
....
13
12,997
Fidelity
National
Information
Services,
Inc.,
1.15%,
03/01/26
.................
200
185,162
GGAM
Finance
Ltd.
(b)
8.00%
,
02/15/27
..................
9
9,293
8.00%
,
06/15/28
..................
2
2,088
6.88%
,
04/15/29
..................
4
4,015
MGIC
Investment
Corp.,
5.25%,
08/15/28
...
10
9,714
Nationstar
Mortgage
Holdings,
Inc.
(b)
5.00%
,
02/01/26
..................
20
19,572
6.00%
,
01/15/27
..................
3
2,958
NCR
Atleos
Corp.,
9.50%,
04/01/29
(b)
......
4
4,278
PayPal
Holdings,
Inc.,
2.65%,
10/01/26
....
110
103,835
PennyMac
Financial
Services,
Inc.,
7.88%,
12/15/29
(b)
.....................
5
5,138
Rocket
Mortgage
LLC
(b)
2.88%
,
10/15/26
..................
15
13,859
3.88%
,
03/01/31
..................
2
1,742
Shift4
Payments
LLC,
4.63%,
11/01/26
(b)
....
15
14,503
416,428
Food
Products
—
0.4%
Chobani
LLC,
4.63%,
11/15/28
(b)
.........
14
13,056
Fiesta
Purchaser,
Inc.,
7.88%,
03/01/31
(b)
...
4
4,131
General
Mills,
Inc.,
5.24%,
11/18/25
.......
95
94,701
Kraft
Heinz
Foods
Co.,
3.00%,
06/01/26
....
100
95,717
207,605
Ground
Transportation
—
0.1%
Uber
Technologies,
Inc.
(b)
6.25%
,
01/15/28
..................
28
28,115
4.50%
,
08/15/29
..................
10
9,488
37,603
Health
Care
Equipment
&
Supplies
—
0.2%
Avantor
Funding,
Inc.,
4.63%,
07/15/28
(b)
...
26
24,638
Bausch
+
Lomb
Corp.,
8.38%,
10/01/28
(b)
...
26
26,901
Hologic,
Inc.,
4.63%,
02/01/28
(b)
.........
9
8,665
Medline
Borrower
LP
(b)
3.88%
,
04/01/29
..................
14
12,743
6.25%
,
04/01/29
..................
8
8,036
Security
Par
(000)
Par
(000)
Value
Health
Care
Equipment
&
Supplies
(continued)
5.25%
,
10/01/29
..................
USD
14
$
13,232
Teleflex,
Inc.
4.63%
,
11/15/27
..................
2
1,924
4.25%
,
06/01/28
(b)
.................
12
11,260
107,399
Health
Care
Providers
&
Services
—
1.8%
Community
Health
Systems,
Inc.
(b)
6.00%
,
01/15/29
..................
19
16,598
5.25%
,
05/15/30
..................
6
4,893
CVS
Health
Corp.,
6.25%,
06/01/27
.......
50
52,068
Elevance
Health,
Inc.,
5.35%,
10/15/25
....
225
225,119
Encompass
Health
Corp.,
4.50%,
02/01/28
..
34
32,382
HCA,
Inc.
5.25%
,
04/15/25
..................
50
49,791
5.88%
,
02/15/26
..................
155
155,662
5.25%
,
06/15/26
..................
43
42,875
5.63%
,
09/01/28
..................
75
75,932
HealthEquity,
Inc.,
4.50%,
10/01/29
(b)
......
19
17,530
Legacy
LifePoint
Health
LLC,
4.38%,
02/15/27
(b)
2
1,906
LifePoint
Health,
Inc.,
11.00%,
10/15/30
(b)
...
11
11,757
Molina
Healthcare,
Inc.,
4.38%,
06/15/28
(b)
..
22
20,681
Tenet
Healthcare
Corp.,
6.13%,
06/15/30
...
26
25,940
UnitedHealth
Group,
Inc.,
2.95%,
10/15/27
..
100
94,105
827,239
Health
Care
REITs
—
0.3%
Healthpeak
OP
LLC,
1.35%,
02/01/27
.....
100
90,242
Welltower
OP
LLC,
4.00%,
06/01/25
......
50
49,151
139,393
Hotels,
Restaurants
&
Leisure
—
0.3%
(b)
1011778
BC
ULC
3.88%
,
01/15/28
..................
8
7,518
4.38%
,
01/15/28
..................
35
33,108
4.00%
,
10/15/30
..................
10
8,910
Cedar
Fair
LP,
5.50%,
05/01/25
.........
9
8,963
Hilton
Domestic
Operating
Co.,
Inc.
5.75%
,
05/01/28
..................
58
57,914
5.88%
,
04/01/29
..................
12
12,020
3.75%
,
05/01/29
..................
2
1,834
Lindblad
Expeditions
Holdings,
Inc.,
9.00%,
05/15/28
......................
4
4,230
Lindblad
Expeditions
LLC,
6.75%,
02/15/27
..
12
12,093
Six
Flags
Entertainment
Corp.,
5.50%,
04/15/27
6
5,861
Vail
Resorts,
Inc.,
6.25%,
05/15/25
.......
7
7,002
159,453
Household
Durables
—
0.0%
(b)
Beazer
Homes
USA,
Inc.,
7.50%,
03/15/31
..
2
2,020
Dream
Finders
Homes,
Inc.,
8.25%,
08/15/28
.
2
2,088
LGI
Homes,
Inc.,
8.75%,
12/15/28
........
2
2,110
New
Home
Co.,
Inc.
(The),
9.25%,
10/01/29
.
4
4,020
10,238
Independent
Power
and
Renewable
Electricity
Producers
—
0.2%
Clearway
Energy
Operating
LLC,
4.75%,
03/15/28
(b)
.....................
61
57,983
TransAlta
Corp.,
7.75%,
11/15/29
........
20
20,790
78,773
Industrial
Conglomerates
—
0.1%
EMRLD
Borrower
LP,
6.63%,
12/15/30
(b)
....
38
38,365
Insurance
—
0.6%
(b)
Alliant
Holdings
Intermediate
LLC
4.25%
,
10/15/27
..................
77
72,493
6.75%
,
04/15/28
..................
4
4,028
7.00%
,
01/15/31
..................
10
10,100
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
26
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Insurance
(continued)
AmWINS
Group,
Inc.
6.38%
,
02/15/29
..................
USD
2
$
2,011
4.88%
,
06/30/29
..................
3
2,800
Howden
UK
Refinance
plc,
7.25%,
02/15/31
.
28
28,106
HUB
International
Ltd.,
7.25%,
06/15/30
....
63
64,745
Jones
Deslauriers
Insurance
Management,
Inc.,
8.50%,
03/15/30
.................
10
10,424
NFP
Corp.,
4.88%,
08/15/28
...........
52
52,117
Panther
Escrow
Issuer
LLC,
7.13%,
06/01/31
.
48
48,802
295,626
IT
Services
—
0.1%
Central
Parent
LLC,
8.00%,
06/15/29
(b)
.....
10
10,366
Northwest
Fiber
LLC,
4.75%,
04/30/27
(b)
....
22
22,497
Twilio,
Inc.,
3.63%,
03/15/29
...........
23
20,687
53,550
Leisure
Products
—
0.0%
(b)
Acushnet
Co.,
7.38%,
10/15/28
.........
2
2,073
Amer
Sports
Co.,
6.75%,
02/16/31
.......
7
6,946
9,019
Life
Sciences
Tools
&
Services
—
0.1%
(b)
Charles
River
Laboratories
International,
Inc.,
4.25%,
05/01/28
.................
32
30,181
Fortrea
Holdings,
Inc.,
7.50%,
07/01/30
....
4
4,129
Star
Parent,
Inc.,
9.00%,
10/01/30
........
17
17,991
52,301
Machinery
—
0.1%
(b)
Mueller
Water
Products,
Inc.,
4.00%,
06/15/29
6
5,442
Wabash
National
Corp.,
4.50%,
10/15/28
...
18
16,507
21,949
Media
—
0.3%
Clear
Channel
Outdoor
Holdings,
Inc.
(b)
5.13%
,
08/15/27
..................
17
16,025
9.00%
,
09/15/28
..................
39
40,623
7.88%
,
04/01/30
..................
15
14,912
DirecTV
Financing
LLC,
5.88%,
08/15/27
(b)
..
19
17,975
GCI
LLC,
4.75%,
10/15/28
(b)
...........
2
1,834
Hughes
Satellite
Systems
Corp.,
5.25%,
08/01/26
......................
4
3,329
Nexstar
Media,
Inc.,
5.63%,
07/15/27
(b)
.....
3
2,878
Outfront
Media
Capital
LLC
(b)
5.00%
,
08/15/27
..................
13
12,512
4.25%
,
01/15/29
..................
2
1,812
7.38%
,
02/15/31
..................
4
4,189
Radiate
Holdco
LLC,
4.50%,
09/15/26
(b)
....
2
1,590
Sirius
XM
Radio,
Inc.
(b)
3.13%
,
09/01/26
..................
7
6,557
5.00%
,
08/01/27
..................
2
1,924
4.00%
,
07/15/28
..................
2
1,830
Univision
Communications,
Inc.
(b)
6.63%
,
06/01/27
..................
6
5,868
8.00%
,
08/15/28
..................
23
23,432
157,290
Metals
&
Mining
—
0.4%
Big
River
Steel
LLC,
6.63%,
01/31/29
(b)
....
61
61,343
Novelis
Corp.
(b)
3.25%
,
11/15/26
..................
37
34,476
3.88%
,
08/15/31
..................
21
18,039
Steel
Dynamics,
Inc.,
2.40%,
06/15/25
.....
50
48,146
162,004
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.0%
Starwood
Property
Trust,
Inc.,
7.25%,
04/01/29
(b)
.....................
3
3,024
Security
Par
(000)
Par
(000)
Value
Multi-Utilities
—
0.9%
Consumers
Energy
Co.,
4.60%,
05/30/29
...
USD
135
$
133,430
E.ON
SE,
0.88%,
01/08/25
(c)
...........
EUR
30
31,660
Engie
SA,
3.88%,
03/06/36
(c)
100
109,905
San
Diego
Gas
&
Electric
Co.,
4.95%,
08/15/28
USD
95
95,356
Sempra,
3.30%,
04/01/25
.............
50
48,918
419,269
Oil,
Gas
&
Consumable
Fuels
—
0.6%
Enbridge,
Inc.,
6.00%,
11/15/28
.........
40
41,589
Eni
SpA,
1.00%,
03/14/25
(c)
............
EUR
100
105,168
Kinder
Morgan,
Inc.,
5.00%,
02/01/29
.....
USD
45
44,815
Targa
Resources
Corp.,
5.20%,
07/01/27
...
57
56,918
Western
Midstream
Operating
LP,
6.35%,
01/15/29
......................
25
25,927
274,417
Passenger
Airlines
—
0.1%
(b)
American
Airlines,
Inc.
5.50%
,
04/20/26
..................
10
9,858
5.75%
,
04/20/29
..................
4
3,932
8.50%
,
05/15/29
..................
11
11,621
Mileage
Plus
Holdings
LLC,
6.50%,
06/20/27
.
—
(d)
1
United
Airlines,
Inc.
4.38%
,
04/15/26
..................
40
38,669
4.63%
,
04/15/29
..................
3
2,790
66,871
Personal
Care
Products
—
0.0%
Coty,
Inc.,
6.63%,
07/15/30
(b)
...........
6
6,093
Pharmaceuticals
—
0.4%
Bristol-Myers
Squibb
Co.,
4.90%,
02/22/29
..
50
50,210
Catalent
Pharma
Solutions,
Inc.
(b)
5.00%
,
07/15/27
..................
11
10,832
3.13%
,
02/15/29
..................
2
1,911
3.50%
,
04/01/30
..................
4
3,810
Pfizer
Investment
Enterprises
Pte.
Ltd.,
4.45%,
05/19/28
......................
111
109,421
Teva
Pharmaceutical
Finance
Netherlands
III
BV,
3.15%,
10/01/26
..............
21
19,575
195,759
Professional
Services
—
0.1%
(b)
AMN
Healthcare,
Inc.,
4.63%,
10/01/27
....
11
10,448
CoreLogic,
Inc.,
4.50%,
05/01/28
........
11
9,863
Dun
&
Bradstreet
Corp.
(The),
5.00%,
12/15/29
9
8,308
28,619
Real
Estate
Management
&
Development
—
0.1%
Anywhere
Real
Estate
Group
LLC
Series
AI
,
7.00%
,
04/15/30
...........
6
4,986
7.00%
,
04/15/30
(b)
.................
5
4,452
Cushman
&
Wakefield
US
Borrower
LLC,
6.75%,
05/15/28
(b)
................
16
15,800
Howard
Hughes
Corp.
(The),
5.38%,
08/01/28
(b)
12
11,510
36,748
Retail
REITs
—
0.0%
Brookfield
Property
REIT,
Inc.,
4.50%,
04/01/27
(b)
.....................
4
3,651
Semiconductors
&
Semiconductor
Equipment
—
1.5%
Broadcom
Corp.,
3.88%,
01/15/27
.......
20
19,389
Entegris,
Inc.
(b)
4.38%
,
04/15/28
..................
8
7,519
4.75%
,
04/15/29
..................
27
25,875
Intel
Corp.,
4.88%,
02/10/28
...........
70
70,173
Lam
Research
Corp.
3.80%
,
03/15/25
..................
6
5,914
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
27
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Semiconductors
&
Semiconductor
Equipment
(continued)
3.75%
,
03/15/26
..................
USD
143
$
139,671
NXP
BV,
2.70%,
05/01/25
.............
330
319,862
Synaptics,
Inc.,
4.00%,
06/15/29
(b)
........
5
4,500
Texas
Instruments,
Inc.,
4.60%,
02/15/28
...
100
100,035
692,938
Software
—
1.7%
Boxer
Parent
Co.,
Inc.,
7.13%,
10/02/25
(b)
...
6
6,005
Capstone
Borrower,
Inc.,
8.00%,
06/15/30
(b)
..
5
5,188
Central
Parent,
Inc.,
7.25%,
06/15/29
(b)
.....
8
8,166
Clarivate
Science
Holdings
Corp.
(b)
3.88%
,
07/01/28
..................
43
39,783
4.88%
,
07/01/29
..................
18
16,653
Cloud
Software
Group,
Inc.,
6.50%,
03/31/29
(b)
75
71,172
Elastic
NV,
4.13%,
07/15/29
(b)
..........
18
16,198
Fair
Isaac
Corp.,
4.00%,
06/15/28
(b)
.......
12
11,209
Gen
Digital,
Inc.,
6.75%,
09/30/27
(b)
.......
10
10,143
MicroStrategy,
Inc.,
6.13%,
06/15/28
(b)
.....
7
6,753
Oracle
Corp.
1.65%
,
03/25/26
..................
45
42,000
2.65%
,
07/15/26
..................
172
162,753
PTC,
Inc.,
4.00%,
02/15/28
(b)
...........
14
13,084
Sabre
GLBL,
Inc.,
8.63%,
06/01/27
(b)
......
7
6,143
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
(b)
.
25
24,444
UKG,
Inc.,
6.88%,
02/01/31
(b)
...........
48
48,899
VMware
LLC
1.40%
,
08/15/26
..................
155
141,555
3.90%
,
08/21/27
..................
55
52,678
Workday,
Inc.,
3.50%,
04/01/27
.........
80
76,605
ZoomInfo
Technologies
LLC,
3.88%,
02/01/29
(b)
22
19,804
779,235
Specialized
REITs
—
1.2%
American
Tower
Corp.,
3.55%,
07/15/27
....
50
47,530
Crown
Castle,
Inc.
3.20%
,
09/01/24
..................
50
49,490
1.05%
,
07/15/26
..................
153
139,072
Equinix,
Inc.
1.00%
,
09/15/25
..................
200
187,038
1.55%
,
03/15/28
..................
65
56,379
Iron
Mountain,
Inc.,
7.00%,
02/15/29
(b)
.....
29
29,553
SBA
Communications
Corp.
3.88%
,
02/15/27
..................
22
20,924
3.13%
,
02/01/29
..................
6
5,295
535,281
Specialty
Retail
—
0.1%
GYP
Holdings
III
Corp.,
4.63%,
05/01/29
(b)
...
8
7,437
Home
Depot,
Inc.
(The),
2.88%,
04/15/27
...
55
52,182
59,619
Technology
Hardware,
Storage
&
Peripherals
—
0.0%
Seagate
HDD
Cayman,
8.25%,
12/15/29
(b)
..
15
16,117
Textiles,
Apparel
&
Luxury
Goods
—
0.1%
(b)
Crocs,
Inc.,
4.25%,
03/15/29
...........
10
9,142
Hanesbrands,
Inc.,
4.88%,
05/15/26
......
11
10,710
William
Carter
Co.
(The),
5.63%,
03/15/27
...
14
13,905
33,757
Trading
Companies
&
Distributors
—
0.6%
Beacon
Roofing
Supply,
Inc.,
6.50%,
08/01/30
(b)
4
4,059
Fortress
Transportation
&
Infrastructure
Investors
LLC
(b)
9.75%
,
08/01/27
..................
2
2,071
5.50%
,
05/01/28
..................
5
4,845
7.88%
,
12/01/30
..................
13
13,651
Herc
Holdings,
Inc.,
5.50%,
07/15/27
(b)
.....
14
13,751
IMCD
NV,
4.88%,
09/18/28
(c)
...........
EUR
100
111,883
Security
Par
(000)
Par
(000)
Value
Trading
Companies
&
Distributors
(continued)
Imola
Merger
Corp.,
4.75%,
05/15/29
(b)
.....
USD
4
$
3,750
SRS
Distribution,
Inc.,
4.63%,
07/01/28
(b)
...
42
42,307
United
Rentals
North
America,
Inc.
4.88%
,
01/15/28
..................
21
20,436
6.00%
,
12/15/29
(b)
.................
15
15,100
WESCO
Distribution,
Inc.
(b)
7.25%
,
06/15/28
..................
24
24,502
6.38%
,
03/15/29
..................
10
10,103
266,458
Wireless
Telecommunication
Services
—
0.9%
Rogers
Communications,
Inc.,
3.20%,
03/15/27
145
137,645
Sprint
LLC,
7.63%,
03/01/26
...........
23
23,762
T-Mobile
USA,
Inc.
2.25%
,
02/15/26
..................
23
21,764
2.63%
,
04/15/26
..................
270
256,473
439,644
Total
Corporate
Bonds
—
34
.3
%
(Cost:
$
16,056,347
)
...............................
15,911,657
Foreign
Agency
Obligations
Canada
—
0.8%
CDP
Financial,
Inc.
,
1.00%
,
05/26/26
(b)
.....
400
369,042
Germany
—
0.4%
Kreditanstalt
fuer
Wiederaufbau
,
0.00%
,
09/15/28
(c)
......................
EUR
200
191,687
Netherlands
—
2.4%
Nederlandse
Waterschapsbank
NV
2.38%
,
03/24/26
(c)
.................
USD
300
286,529
2.38%
,
03/24/26
(b)
.................
400
382,038
1.00%
,
05/28/30
(c)
.................
550
448,261
1,116,828
Total
Foreign
Agency
Obligations
—
3
.6
%
(Cost:
$
1,713,318
)
...............................
1,677,557
Non-Agency
Mortgage-Backed
Securities
Collateralized
Mortgage
Obligations
—
3.1%
(b)
Angel
Oak
Mortgage
Trust,
Series
2022-2,
Class
A1,
3.35%,
01/25/67
(a)
..........
40
36,346
Barclays
Mortgage
Loan
Trust,
Series
2024-
NQM1,
Class
A1,
5.90%,
01/25/64
(e)
.....
99
98,511
BRAVO
Residential
Funding
Trust,
Series
2023-
NQM6,
Class
A1,
6.60%,
09/25/63
(e)
.....
94
94,183
COLT
Mortgage
Loan
Trust,
Series
2022-3,
Class
A1,
3.90%,
02/25/67
(a)
..........
82
77,825
CSMC
Trust,
Series
2021-NQM8,
Class
A1,
1.84%,
10/25/66
(a)
.................
76
65,653
Deephaven
Residential
Mortgage
Trust,
Series
2021-4,
Class
A1,
1.93%,
11/25/66
(a)
.....
73
62,903
Flagstar
Mortgage
Trust,
Series
2021-12,
Class
A19,
5.00%,
11/25/51
(a)
..............
108
103,675
GCAT
Trust,
Series
2021-NQM7,
Class
A1,
1.91%,
08/25/66
(a)
.................
56
48,657
J.P.
Morgan
Mortgage
Trust
Series
2021-15,
Class
A4,
2.50%,
06/25/52
(a)
138
119,607
Series
2021-7,
Class
A3,
2.50%,
11/25/51
(a)
104
83,527
Series
2024-2,
Class
A3,
6.00%,
08/25/54
.
38
38,039
MFA
Trust,
Series
2023-INV2,
Class
A1,
6.77%,
10/25/58
(e)
......................
98
98,222
Mill
City
Mortgage
Loan
Trust,
Series
2017-3,
Class
A1,
2.75%,
01/25/61
(a)
..........
16
15,469
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
28
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Collateralized
Mortgage
Obligations
(continued)
OBX
Trust,
Series
2023-NQM6,
Class
A1,
6.52%,
07/25/63
(e)
.................
USD
98
$
98,595
PRKCM
Trust,
Series
2023-AFC3,
Class
A1,
6.58%,
09/25/58
(e)
.................
90
90,437
RCKT
Mortgage
Trust,
Series
2022-4,
Class
A2,
3.50%,
06/25/52
(a)
.................
89
77,657
Towd
Point
Mortgage
Trust
(a)
Series
2015-1,
Class
A5,
4.53%,
10/25/53
.
94
93,079
Series
2018-1,
Class
A1,
3.00%,
01/25/58
.
47
45,872
Series
2018-2,
Class
A1,
3.25%,
03/25/58
.
49
47,688
Series
2018-6,
Class
A1A,
3.75%,
03/25/58
69
67,031
1,462,976
Commercial
Mortgage-Backed
Securities
—
3.4%
BAMLL
Commercial
Mortgage
Securities
Trust,
Series
2015-200P,
Class
A,
3.22%,
04/14/33
(b)
......................
100
96,282
BBCMS
Mortgage
Trust,
Series
2023-C19,
Class
A2B,
5.75%,
04/15/56
..........
50
50,326
Benchmark
Mortgage
Trust
Series
2023-V3,
Class
A3,
6.36%,
07/15/56
(a)
....................
50
52,256
Series
2024-V5,
Class
A3,
5.81%,
01/10/57
40
41,188
BX
Commercial
Mortgage
Trust,
Series
2024-
XL5,
Class
A,
(1-mo.
CME
Term
SOFR
at
1.39%
Floor
+
1.39%),
6.69%,
03/15/41
(a)
(b)
100
100,050
BX
Trust
(a)(b)
Series
2024-PAT,
Class
A,
(1-mo.
CME
Term
SOFR
at
2.09%
Floor
+
2.09%),
7.34%,
03/15/26
.....................
30
29,985
Series
2024-PAT,
Class
B,
(1-mo.
CME
Term
SOFR
at
3.04%
Floor
+
3.04%),
8.29%,
03/15/26
.....................
10
9,994
CENT
Trust,
Series
2023-CITY,
Class
A,
(1-mo.
CME
Term
SOFR
at
2.62%
Floor
+
2.62%),
7.95%,
09/15/38
(a)
(b)
................
40
40,400
Commercial
Mortgage
Trust,
Series
2015-
CR22,
Class
A5,
3.31%,
03/10/48
.......
200
195,219
CSAIL
Commercial
Mortgage
Trust,
Series
2016-C5,
Class
A5,
3.76%,
11/15/48
.....
200
194,279
Grace
Trust,
Series
2020-GRCE,
Class
A,
2.35%,
12/10/40
(b)
.................
150
121,950
J.P.
Morgan
Chase
Commercial
Mortgage
Securities
Trust
(b)
Series
2021-NYAH,
Class
A,
(1-mo.
CME
Term
SOFR
at
0.76%
Floor
+
0.87%),
6.20%,
06/15/38
(a)
...............
100
98,500
Series
2022-OPO,
Class
A,
3.02%,
01/05/39
100
88,468
MAD
Mortgage
Trust,
Series
2017-330M,
Class
A,
3.08%,
08/15/34
(a)
(b)
..............
100
92,375
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust,
Series
2015-C20,
Class
A4,
3.25%,
02/15/48
.......................
180
176,359
MSWF
Commercial
Mortgage
Trust,
Series
2023-2,
Class
A5,
6.01%,
12/15/56
(a)
.....
35
37,443
Taubman
Centers
Commercial
Mortgage
Trust,
Series
2022-DPM,
Class
A,
(1-mo.
CME
Term
SOFR
at
2.19%
Floor
+
2.19%),
7.51%,
05/15/37
(a)
(b)
................
100
100,750
Wells
Fargo
Commercial
Mortgage
Trust,
Series
2016-LC25,
Class
A4,
3.64%,
12/15/59
...
50
47,796
1,573,620
Total
Non-Agency
Mortgage-Backed
Securities
—
6
.5
%
(Cost:
$
3,162,439
)
...............................
3,036,596
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
$
120,561
1.68
%
,
09/17/35
..................
220
160,054
2.17
%
,
10/29/29
..................
80
71,025
2.25
%
,
08/15/29
..................
150
133,922
Federal
Home
Loan
Bank
Bonds
0.60
%
,
12/30/26
..................
120
107,094
2.06
%
,
09/27/29
..................
150
132,693
2.18
%
,
11/06/29
..................
100
88,047
Federal
Home
Loan
Mortgage
Corp.
0.65
%
,
05/28/26
..................
120
109,829
4.20
%
,
08/28/25
..................
150
148,398
Federal
National
Mortgage
Association
0.74
%
,
08/25/27
..................
120
105,608
0.81
%
,
09/25/28
..................
120
102,271
1,279,502
Collateralized
Mortgage
Obligations
—
0.2%
Federal
National
Mortgage
Association
,
Series
2020-79
,
1.50
%
,
11/25/50
............
49
42,992
Government
National
Mortgage
Association
,
Series
2020-127
,
Class
LP
,
1.50
%
,
06/20/50
81
63,038
106,030
Mortgage-Backed
Securities
—
7.5%
Federal
Home
Loan
Mortgage
Corp.
,
2.50
%
,
10/01/31
..................
136
126,926
Government
National
Mortgage
Association
2.50
%
,
10/20/51
..................
195
164,686
3.00
%
,
10/20/51
..................
950
837,497
Uniform
Mortgage-Backed
Securities
2.50
%
,
02/01/35
-
11/01/51
...........
451
404,472
3.00
%
,
11/01/51
..................
246
216,279
3.50
%
,
11/01/51
..................
914
839,931
4.50
%
,
04/25/54
(f)
.................
455
433,261
6.50
%
,
11/01/53
..................
429
438,740
3,461,792
Total
U.S.
Government
Sponsored
Agency
Securities
—
10
.4
%
(Cost:
$
5,253,946
)
...............................
4,847,324
U.S.
Treasury
Obligations
U.S.
Treasury
Notes
3.88
%
,
01/15/26
..................
350
344,996
4.00
%
,
02/15/26
-
01/15/27
...........
1,510
1,491,702
4.63
%
,
03/15/26
-
11/15/26
...........
3,545
3,551,278
3.75
%
,
04/15/26
..................
1,560
1,533,066
3.63
%
,
05/15/26
..................
555
543,987
4.50
%
,
07/15/26
..................
900
898,664
4.38
%
,
08/15/26
-
12/15/26
...........
1,585
1,580,334
4.13
%
,
02/15/27
..................
1,170
1,160,128
4.25
%
,
03/15/27
..................
790
786,359
Total
U.S.
Treasury
Obligations
—
25
.6
%
(Cost:
$
11,944,512
)
...............................
11,890,514
Total
Long-Term
Investments
—
97.3%
(Cost:
$
46,094,761
)
...............................
45,196,780
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
29
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the six
months
ended
March
31,
2024
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
—
0.5%
HSBC
USA,
Inc.
,
6.55%
,
06/24/24
(g)
.......
USD
250
$
246,657
Total
Commercial
Paper
—
0
.5
%
(Cost:
$
246,412
)
.................................
246,657
Shares
Shares
Money
Market
Funds
—
3.5%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
,
5.19
%
(h)
(i)
..................
1,622,948
1,622,948
Total
Money
Market
Funds
—
3
.5
%
(Cost:
$
1,622,948
)
...............................
1,622,948
Total
Short-Term
Securities
—
4.0%
(Cost:
$
1,869,360
)
...............................
1,869,605
Total
Investments
Before
TBA
Sale
Commitments
—
101
.3
%
(Cost:
$
47,964,121
)
...............................
47,066,385
Security
Par
(000)
Pa
r
(
000)
Value
TBA
Sale
Commitments
Mortgage-Backed
Securities
—
(
0
.9
)
%
Uniform
Mortgage-Backed
Securities
,
4.50
%
,
04/25/54
(f)
.................
USD
(
455
)
$
(
433,261
)
Total
TBA
Sale
Commitments
—
(
0
.9
)
%
(Proceeds:
$
(
436,125
)
)
............................
(433,261)
Total
Investments
Net
of
TBA
Sale
Commitments
—
100
.4
%
(Cost:
$
47,527,996
)
...............................
46,633,124
Liabilities
in
Excess
of
Other
Assets
—
(
0.4
)
%
.............
(
205,198
)
Net
Assets
—
100.0%
...............................
$
46,427,926
(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)
Rounds
to
less
than
1,000.
(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)
Represents
or
includes
a
TBA
transaction.
(g)
Rates
are
discount
rates
or
a
range
of
discount
rates
as
of
period
end.
(h)
Affiliate
of
the
Fund.
(i)
Annualized
7-day
yield
as
of
period
end.
Affiliated
Issuer
Value
at
09/30/23
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
03/31/24
Shares
Held
at
03/31/24
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
.
$
933,595
$
689,353
(a)
$
—
$
—
$
—
$
1,622,948
1,622,948
$
24,286
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
For
purposes
of
this
report,
industry
and
sector
sub-classifications
may
differ
from
those
utilized
by
the
Fund
for
compliance
purposes.
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
30
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
U.S.
Treasury
2-Year
Note
....................................................
81
06/28/24
$
16,563
$
(
12,966
)
Short
Contracts
Euro-Bobl
...............................................................
6
06/06/24
765
(
2,323
)
Euro-Bund
..............................................................
2
06/06/24
288
(
3,220
)
Euro-Schatz
.............................................................
2
06/06/24
228
(
172
)
U.S.
Treasury
10-Year
Note
...................................................
16
06/18/24
1,773
1,463
U.S.
Treasury
10-Year
Ultra
Note
...............................................
10
06/18/24
1,146
(
6,214
)
U.S.
Treasury
Long
Bond
.....................................................
5
06/18/24
602
(
11,377
)
U.S.
Treasury
Ultra
Bond
.....................................................
2
06/18/24
258
(
5,817
)
U.S.
Treasury
5-Year
Note
....................................................
52
06/28/24
5,565
(
6,581
)
(
34,241
)
$
(
47,207
)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation
(Depreciation)
USD
942,740
EUR
862,000
BNP
Paribas
SA
06/20/24
$
9,755
USD
106,859
EUR
98,000
JPMorgan
Chase
Bank
NA
06/20/24
788
$
10,543
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.V2
.....................
5
.00
%
Quarterly
12/20/28
USD
1,980
$
(
148,245
)
$
(
32,767
)
$
(
115,478
)
Markit
CDX
North
American
Investment
Grade
Index
Series
42.V1
................
1
.00
Quarterly
06/20/29
USD
990
(
22,610
)
(
21,477
)
(
1,133
)
$
(
170,855
)
$
(
54,244
)
$
(
116,611
)
Centrally
Cleared
Interest
Rate
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Rate
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
0.23%
Annual
1-day
TONAR
Annual
11/24/25
JPY
158,506
$
(
198
)
$
—
$
(
198
)
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
1-day
TONAR
........................................
Tokyo
Overnight
Average
Rate
0
.07
%
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
31
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
Balances
Reported
in
the
Statements
of
Assets
and
Liabilities
for
Centrally
Cleared
Swaps
Description
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
Centrally
Cleared
Swaps
(a)
..........................................................
$
—
$
(
54,244
)
$
—
$
(
116,809
)
(a)
Includes
cumulative
appreciation
(depreciation)
on
centrally
cleared
swaps,
as
reported
in
the
Schedule
of
Investments.
Only
current
day’s
variation
margin
is
reported
within
the
Statements
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
1,463
$
—
$
1,463
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
10,543
—
—
10,543
$
—
$
—
$
—
$
10,543
$
1,463
$
—
$
12,006
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
48,670
$
—
$
48,670
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
116,611
—
—
198
—
116,809
$
—
$
116,611
$
—
$
—
$
48,868
$
—
$
165,479
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
of
Assets
and
Liabilities,
only
current
day’s
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
For
the
period
ended
March
31,
2024,
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
.......................
$
—
$
—
$
—
$
—
$
(
22,862
)
$
—
$
(
22,862
)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(
36,494
)
—
—
(
36,494
)
Options
purchased
(a)
.....................
—
—
—
—
(
9,806
)
—
(
9,806
)
Options
written
........................
—
—
—
—
5,540
—
5,540
Swaps
..............................
—
(
21,880
)
—
—
(
869
)
—
(
22,749
)
$
—
$
(21,880)
$
—
$
(36,494)
$
(27,997)
$
—
$
(86,371)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
c
ontracts
.......................
$
—
$
—
$
—
$
—
$
(
137,775
)
$
—
$
(
137,775
)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(
19,949
)
—
—
(
19,949
)
Options
purchased
(b)
.....................
—
—
—
—
6,431
—
6,431
Options
written
........................
—
—
—
—
(
3,853
)
—
(
3,853
)
Swaps
..............................
—
(
138,481
)
—
—
(
198
)
—
(
138,679
)
$
—
$
(138,481)
$
—
$
(19,949)
$
(135,395)
$
—
$
(293,825)
(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.
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
32
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
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.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
16,209,309
Average
notional
value
of
contracts
—
short
.................................................................................
$
10,563,480
Forward
foreign
currency
exchange
contracts
Average
amounts
purchased
—
in
USD
....................................................................................
$
1,663,726
Options
Average
value
of
option
contracts
purchased
................................................................................
$
—
(a)
Average
value
of
option
contracts
written
...................................................................................
$
—
(a)
Credit
default
swaps
Average
notional
value
—
buy
protection
...................................................................................
$
2,721,100
Interest
rate
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
1,085,615
(a)
Derivative
financial
instrument
not
held
at
any
quarter-end.
The
risk
exposure
table
serves
as
an
indicator
of
activity
during
the
period.
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments
$
—
Futures
contracts
....................................................................................
$
—
$
869
Forward
f
oreign
currency
exchange
contracts
.................................................................
10,543
—
Swaps
—
centrally
cleared
..............................................................................
—
9,260
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
10,543
$
10,129
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
—
(
10,129
)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
10,543
$
—
The
following
table
presents
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
by
the
Fund:
Counterparty
Derivative
Assets
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
Non-cash
Collateral
Received
Cash
Collateral
Received
Net
Amount
of
Derivative
Assets
(a)(b)
BNP
Paribas
SA
.................................
$
9,755
$
—
$
—
$
—
$
9,755
JPMorgan
Chase
Bank
NA
..........................
788
—
—
—
788
$
10,543
$
—
$
—
$
—
$
10,543
(a)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(b)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Asset-Backed
Securities
...................................
$
—
$
7,833,132
$
—
$
7,833,132
Corporate
Bonds
........................................
—
15,911,657
—
15,911,657
Foreign
Agency
Obligations
.................................
—
1,677,557
—
1,677,557
Non-Agency
Mortgage-Backed
Securities
........................
—
3,036,596
—
3,036,596
U.S.
Government
Sponsored
Agency
Securities
....................
—
4,847,324
—
4,847,324
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Low
Duration
Bond
Fund
Schedules
of
Investments
33
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
U.S.
Treasury
Obligations
...................................
$
—
$
11,890,514
$
—
$
11,890,514
Short-Term
Securities
Commercial
Paper
.......................................
—
246,657
—
246,657
Money
Market
Funds
......................................
1,622,948
—
—
1,622,948
Liabilities
Investments
TBA
Sale
Commitments
....................................
—
(
433,261
)
—
(
433,261
)
$
1,622,948
$
45,010,176
$
—
$
46,633,124
Derivative
Financial
Instruments
(a)
Assets
Foreign
currency
exchange
contracts
............................
$
—
$
10,543
$
—
$
10,543
Interest
rate
contracts
.......................................
1,463
—
—
1,463
Liabilities
Credit
contracts
...........................................
—
(
116,611
)
—
(
116,611
)
Interest
rate
contracts
.......................................
(
48,670
)
(
198
)
—
(
48,868
)
$
(
47,207
)
$
(
106,266
)
$
—
$
(
153,473
)
(a)
Derivative
financial
instruments
are
swaps,
futures
contracts
and
forward
foreign
currency
exchange
contracts.
Swaps,
futures
contracts
and
forward
foreign
currency
exchange
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
Fair
Value
Hierarchy
as
of Period
End
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
34
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Pa
r
(
000)
Value
Asset-Backed
Securities
Cayman
Islands
—
6.4%
(a)(b)
AGL
Core
CLO
4
Ltd.,
Series
2020-4A,
Class
A1R,
(3-mo.
CME
Term
SOFR
at
1.07%
Floor
+
1.33%),
6.65%,
04/20/33
.................
USD
250
$
250,055
Anchorage
Capital
CLO
8
Ltd.,
Series
2016-8A,
Class
BR2,
(3-mo.
CME
Term
SOFR
at
1.80%
Floor
+
2.06%),
7.38%,
10/27/34
.......
250
249,002
Bridge
Street
CLO
II
Ltd.,
Series
2021-
1A,
Class
A1A,
(3-mo.
CME
Term
SOFR
at
1.23%
Floor
+
1.49%),
6.81%,
07/20/34
............
250
250,188
CIFC
Funding
Ltd.,
Series
2020-3A,
Class
A1R,
(3-mo.
CME
Term
SOFR
at
1.39%
Floor
+
1.39%),
6.71%,
10/20/34
.................
250
250,134
Gilbert
Park
CLO
Ltd.,
Series
2017-1A,
Class
A,
(3-mo.
CME
Term
SOFR
at
1.19%
Floor
+
1.45%),
6.77%,
10/15/30
.................
168
167,832
Madison
Park
Funding
XIX
Ltd.,
Series
2015-19A,
Class
AR3,
(3-mo.
CME
Term
SOFR
at
1.60%
Floor
+
1.60%),
6.92%,
01/22/37
.......
250
250,795
Neuberger
Berman
Loan
Advisers
CLO
35
Ltd.,
Series
2019-35A,
Class
CR,
(3-mo.
CME
Term
SOFR
at
2.30%
Floor
+
2.30%),
7.64%,
01/19/33
.
250
252,366
Palmer
Square
CLO
Ltd.,
Series
2021-
3A,
Class
A1,
(3-mo.
CME
Term
SOFR
at
1.41%
Floor
+
1.41%),
6.73%,
01/15/35
............
250
250,575
Pikes
Peak
CLO
8,
Series
2021-8A,
Class
B,
(3-mo.
CME
Term
SOFR
at
1.75%
Floor
+
2.01%),
7.33%,
07/20/34
.................
250
249,824
TCW
CLO
AMR
Ltd.,
Series
2019-1A,
Class
ASNR,
(3-mo.
CME
Term
SOFR
at
1.22%
Floor
+
1.48%),
6.81%,
08/16/34
............
250
249,397
Trimaran
CAVU
Ltd.,
Series
2021-2A,
Class
D1,
(3-mo.
CME
Term
SOFR
at
3.25%
Floor
+
3.51%),
8.84%,
10/25/34
.................
250
247,078
2,667,246
Ireland
—
0.3%
Prodigy
Finance
DAC,
Series
2021-1A,
Class
A,
(1-mo.
CME
Term
SOFR
+
1.36%),
6.69%,
07/25/51
(a)
(b)
....
118
117,388
United
States
—
5.2%
Arbor
Realty
Commercial
Real
Estate
Notes
Ltd.,
Series
2021-FL1,
Class
A,
(1-mo.
CME
Term
SOFR
at
0.97%
Floor
+
1.08%),
6.41%,
12/15/35
(a)
(b)
...............
58
57,632
Diameter
Capital
CLO
1
Ltd.,
Series
2021-1A,
Class
A1A,
(3-mo.
CME
Term
SOFR
at
1.50%
Floor
+
1.50%),
6.82%,
07/15/36
(a)
(b)
....
250
250,150
Home
Partners
of
America
Trust,
Series
2021-2,
Class
F,
3.80%,
12/17/26
(a)
481
429,803
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Legacy
Mortgage
Asset
Trust,
Series
2019-SL2,
Class
M,
4.25%,
02/25/59
(a)
(b)
...............
USD
215
$
171,336
Lendmark
Funding
Trust,
Series
2022-
1A,
Class
A,
5.12%,
07/20/32
(a)
..
100
98,836
Long
Beach
Mortgage
Loan
Trust,
Series
2006-2,
Class
1A,
(1-mo.
CME
Term
SOFR
at
0.18%
Floor
+
0.47%),
5.80%,
03/25/46
(b)
.....
125
97,115
MF1
LLC,
Series
2023-FL12,
Class
A,
(1-mo.
CME
Term
SOFR
at
2.07%
Floor
+
2.07%),
7.39%,
10/19/38
(a)
(b)
100
99,713
Mosaic
Solar
Loans
LLC,
Series
2017-
2A,
Class
C,
2.00%,
06/22/43
(a)
..
9
8,849
Navient
Private
Education
Loan
Trust,
Series
2015-AA,
Class
A3,
(1-mo.
CME
Term
SOFR
at
1.70%
Floor
+
1.81%),
7.14%,
11/15/30
(a)
(b)
....
66
66,298
PRET
LLC,
Series
2021-NPL6,
Class
A1,
2.49%,
07/25/51
(a)
(c)
.......
183
176,607
Progress
Residential
Trust,
Series
2021-SFR10,
Class
F,
4.61%,
12/17/40
(a)
................
493
435,188
Ready
Capital
Mortgage
Financing
LLC,
Series
2023-FL11,
Class
A,
(1-mo.
CME
Term
SOFR
at
2.37%
Floor
+
2.37%),
7.70%,
10/25/39
(a)
(b)
46
45,857
Redwood
Funding
Trust,
Series
2023-1,
Class
A,
7.50%,
07/25/59
(a)
(c)
....
95
94,810
Regional
Management
Issuance
Trust
(a)
Series
2020-1,
Class
A,
2.34%,
10/15/30
...............
50
49,078
Series
2021-1,
Class
A,
1.68%,
03/17/31
...............
92
88,889
2,170,161
Total
Asset-Backed
Securities
—
11.9%
(Cost:
$
5,054,407
)
..............................
4,954,795
Corporate
Bonds
Belgium
—
0.2%
KBC
Group
NV
,
(3-mo.
EURIBOR
+
0.72%),
0.38%
,
06/16/27
(b)
(d)
....
EUR
100
100,677
Canada
—
0.2%
Algonquin
Power
&
Utilities
Corp.
,
5.37%
,
06/15/26
(c)
...........
USD
30
29,838
Rogers
Communications,
Inc.
,
5.30%
,
02/15/34
.................
51
50,545
80,383
China
—
0.1%
NXP
BV
5.55%
,
12/01/28
............
32
32,473
3.40%
,
05/01/30
............
5
4,533
37,006
France
—
1.8%
(d)
Banque
Federative
du
Credit
Mutuel
SA
0.10%
,
10/08/27
............
EUR
100
96,518
4.13%
,
09/18/30
............
200
225,041
BNP
Paribas
SA
(b)
(3-mo.
EURIBOR
+
0.80%),
0.38%
,
10/14/27
...............
100
99,513
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
35
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
France
(continued)
(3-mo.
EURIBOR
+
1.60%),
4.75%
,
11/13/32
...............
EUR
100
$
114,402
Elis
SA
,
3.75%
,
03/21/30
........
100
107,379
Engie
SA
,
1.75%
,
03/27/28
.......
100
101,497
744,350
Germany
—
1.2%
Deutsche
Bank
AG
,
5.37%
,
09/09/27
USD
150
150,776
E.ON
SE
,
1.00%
,
10/07/25
(d)
......
EUR
100
104,123
Eurogrid
GmbH
,
3.92%
,
02/01/34
(d)
..
100
109,943
Sartorius
Finance
BV
,
4.50%
,
09/14/32
(d)
................
100
113,614
478,456
Italy
—
0.5%
(d)
Iren
SpA
,
1.95%
,
09/19/25
.......
100
105,107
Snam
SpA
,
3.38%
,
02/19/28
......
100
107,882
212,989
South
Africa
—
0.5%
Anglo
American
Capital
plc
,
2.63%
,
09/10/30
(a)
................
USD
258
218,574
Spain
—
0.5%
(b)(d)
Banco
de
Sabadell
SA
,
(1-Year
EUR
Swap
Annual
+
1.60%),
4.00%
,
01/15/30
.................
EUR
100
109,324
CaixaBank
SA
,
(3-mo.
EURIBOR
+
0.85%),
0.38%
,
11/18/26
.......
100
102,037
211,361
Switzerland
—
2.4%
Credit
Suisse
AG
4.75%
,
08/09/24
............
USD
250
249,087
0.45%
,
05/19/25
(d)
...........
EUR
100
104,174
UBS
AG
,
0.01%
,
06/29/26
(d)
.......
200
200,482
UBS
Group
AG
(b)
(1-Year
EURIBOR
ICE
Swap
Rate
+
4.95%),
7.75%
,
03/01/29
(d)
..
100
123,006
(1-day
SOFR
+
5.02%),
9.02%
,
11/15/33
(a)
..............
USD
250
303,337
980,086
United
Kingdom
—
0.5%
National
Grid
plc
,
0.25%
,
09/01/28
(d)
.
EUR
100
93,831
RELX
Capital,
Inc.
,
3.00%
,
05/22/30
.
USD
18
16,155
SSE
plc
,
0.88%
,
09/06/25
(d)
.......
EUR
100
103,791
213,777
United
States
—
25.0%
AbbVie,
Inc.
5.05%
,
03/15/34
............
USD
23
23,285
4.55%
,
03/15/35
............
59
57,026
4.70%
,
05/14/45
............
69
64,522
5.40%
,
03/15/54
............
5
5,146
AEP
Texas,
Inc.
3.95%
,
06/01/28
............
64
61,066
5.25%
,
05/15/52
............
22
20,652
Agilent
Technologies,
Inc.
,
3.05%
,
09/22/26
.................
37
35,245
American
International
Group,
Inc.
,
4.75%
,
04/01/48
............
8
7,393
American
Tower
Corp.
,
3.80%
,
08/15/29
.................
355
331,308
Amgen,
Inc.
4.05%
,
08/18/29
............
177
170,129
5.25%
,
03/02/30
............
40
40,608
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
4.40%
,
02/22/62
............
USD
30
$
24,716
5.75%
,
03/02/63
............
59
60,177
Aon
Corp.
2.80%
,
05/15/30
............
34
29,949
2.05%
,
08/23/31
............
5
4,079
Aon
North
America,
Inc.
,
5.75%
,
03/01/54
.................
14
14,353
AT&T,
Inc.
2.75%
,
06/01/31
............
28
24,118
2.25%
,
02/01/32
............
16
13,004
5.40%
,
02/15/34
............
67
67,879
5.25%
,
03/01/37
............
17
16,713
4.75%
,
05/15/46
............
59
52,837
4.50%
,
03/09/48
............
51
43,379
3.50%
,
09/15/53
............
20
14,110
3.65%
,
09/15/59
............
73
50,824
Atmos
Energy
Corp.
2.85%
,
02/15/52
............
10
6,482
6.20%
,
11/15/53
............
4
4,506
Autodesk,
Inc.
,
2.85%
,
01/15/30
....
19
16,977
Baltimore
Gas
&
Electric
Co.
3.50%
,
08/15/46
............
74
55,257
5.40%
,
06/01/53
............
27
26,853
Bank
of
America
Corp.
(b)
(1-day
SOFR
+
1.99%),
6.20%
,
11/10/28
...............
50
51,723
(1-day
SOFR
+
1.57%),
5.82%
,
09/15/29
...............
217
222,498
(3-mo.
CME
Term
SOFR
+
1.25%),
2.50%
,
02/13/31
..........
38
32,735
Series
N
,
(1-day
SOFR
+
1.22%),
2.65%
,
03/11/32
..........
79
66,754
(1-day
SOFR
+
1.33%),
2.97%
,
02/04/33
...............
21
17,859
(1-day
SOFR
+
1.84%),
5.87%
,
09/15/34
...............
101
104,754
(1-day
SOFR
+
1.65%),
5.47%
,
01/23/35
...............
50
50,326
Becton
Dickinson
&
Co.
,
4.67%
,
06/06/47
.................
12
10,753
Berry
Global,
Inc.
,
1.65%
,
01/15/27
..
44
39,943
Bristol-Myers
Squibb
Co.
5.10%
,
02/22/31
............
15
15,145
6.25%
,
11/15/53
............
11
12,391
Broadcom,
Inc.
4.30%
,
11/15/32
............
30
28,188
2.60%
,
02/15/33
(a)
...........
56
45,481
3.42%
,
04/15/33
(a)
...........
61
52,881
3.14%
,
11/15/35
(a)
...........
32
25,853
Burlington
Northern
Santa
Fe
LLC
5.40%
,
06/01/41
............
19
19,336
3.30%
,
09/15/51
............
33
23,727
Cameron
LNG
LLC
,
3.30%
,
01/15/35
(a)
199
165,590
CenterPoint
Energy
Houston
Electric
LLC
Series
AE
,
2.35%
,
04/01/31
....
10
8,474
Series
AF
,
3.35%
,
04/01/51
....
9
6,524
Charter
Communications
Operating
LLC
5.13%
,
07/01/49
............
8
6,199
4.80%
,
03/01/50
............
108
79,943
3.90%
,
06/01/52
............
62
39,430
Cisco
Systems,
Inc.
,
4.95%
,
02/26/31
40
40,353
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
36
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Citigroup,
Inc.
(b)
(1-day
SOFR
+
1.28%),
3.07%
,
02/24/28
...............
USD
17
$
15,991
(3-mo.
CME
Term
SOFR
+
1.41%),
3.52%
,
10/27/28
..........
29
27,345
(1-day
SOFR
+
1.18%),
2.52%
,
11/03/32
...............
44
36,083
(1-day
SOFR
+
1.35%),
3.06%
,
01/25/33
...............
5
4,251
(1-day
SOFR
+
2.09%),
4.91%
,
05/24/33
...............
35
33,742
(1-day
SOFR
+
2.34%),
6.27%
,
11/17/33
...............
36
38,022
CNH
Industrial
Capital
LLC
,
3.95%
,
05/23/25
.................
350
343,729
Comcast
Corp.
4.65%
,
02/15/33
............
34
33,366
3.75%
,
04/01/40
............
5
4,156
2.89%
,
11/01/51
............
18
11,684
2.94%
,
11/01/56
............
37
23,295
2.99%
,
11/01/63
............
48
29,479
5.50%
,
05/15/64
............
25
25,032
Consolidated
Edison
Co.
of
New
York,
Inc.
,
Series
07-A
,
6.30%
,
08/15/37
17
18,365
Crown
Castle,
Inc.
,
3.10%
,
11/15/29
.
304
271,296
CVS
Health
Corp.
4.78%
,
03/25/38
............
40
36,939
5.05%
,
03/25/48
............
12
10,898
Dell
International
LLC
,
4.90%
,
10/01/26
78
77,519
Edison
International
5.75%
,
06/15/27
............
34
34,448
5.25%
,
11/15/28
............
27
26,905
6.95%
,
11/15/29
............
46
49,281
Elevance
Health,
Inc.
,
4.55%
,
03/01/48
29
25,492
Equinix,
Inc.
3.20%
,
11/18/29
............
128
114,589
2.15%
,
07/15/30
............
6
4,973
Eversource
Energy
,
5.45%
,
03/01/28
35
35,432
Extra
Space
Storage
LP
,
5.50%
,
07/01/30
.................
10
10,102
FactSet
Research
Systems,
Inc.
,
3.45%
,
03/01/32
............
69
60,922
FirstEnergy
Transmission
LLC
,
4.55%
,
04/01/49
(a)
................
36
30,462
Gilead
Sciences,
Inc.
1.65%
,
10/01/30
............
40
32,950
4.00%
,
09/01/36
............
38
34,089
2.60%
,
10/01/40
............
25
17,643
4.80%
,
04/01/44
............
49
45,616
Global
Payments,
Inc.
,
5.30%
,
08/15/29
.................
36
35,828
Goldman
Sachs
Group,
Inc.
(The)
(b)
(1-day
SOFR
+
1.11%),
2.64%
,
02/24/28
...............
4
3,726
(1-day
SOFR
+
1.85%),
3.62%
,
03/15/28
...............
4
3,826
(1-day
SOFR
+
1.73%),
4.48%
,
08/23/28
...............
25
24,441
(3-mo.
CME
Term
SOFR
+
1.42%),
3.81%
,
04/23/29
..........
103
97,641
(1-day
SOFR
+
1.77%),
6.48%
,
10/24/29
...............
18
18,938
(1-day
SOFR
+
1.25%),
2.38%
,
07/21/32
...............
56
45,940
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
(1-day
SOFR
+
1.26%),
2.65%
,
10/21/32
...............
USD
108
$
89,858
(1-day
SOFR
+
1.95%),
6.56%
,
10/24/34
...............
70
76,370
Hartford
Financial
Services
Group,
Inc.
(The)
,
2.90%
,
09/15/51
........
7
4,574
HCA,
Inc.
5.38%
,
09/01/26
............
4
3,999
3.50%
,
09/01/30
............
184
166,402
5.50%
,
06/15/47
............
22
20,914
Hewlett
Packard
Enterprise
Co.
5.90%
,
10/01/24
............
130
130,194
5.25%
,
07/01/28
............
5
5,042
Humana,
Inc.
,
5.50%
,
03/15/53
....
10
9,730
Intel
Corp.
5.15%
,
02/21/34
............
25
25,057
4.75%
,
03/25/50
............
6
5,435
Invitation
Homes
Operating
Partnership
LP
5.45%
,
08/15/30
............
15
15,045
4.15%
,
04/15/32
............
20
18,304
JPMorgan
Chase
&
Co.
(b)
(1-day
SOFR
+
1.33%),
6.07%
,
10/22/27
...............
53
54,077
(3-mo.
CME
Term
SOFR
+
1.52%),
4.20%
,
07/23/29
..........
4
3,856
(1-day
SOFR
+
1.57%),
6.09%
,
10/23/29
...............
14
14,555
(1-day
SOFR
+
1.31%),
5.01%
,
01/23/30
...............
24
23,902
(3-mo.
CME
Term
SOFR
+
1.51%),
2.74%
,
10/15/30
..........
33
29,224
(3-mo.
CME
Term
SOFR
+
3.79%),
4.49%
,
03/24/31
..........
56
54,141
(3-mo.
EURIBOR
+
1.28%),
4.46%
,
11/13/31
(d)
..............
EUR
100
114,035
(1-day
SOFR
+
1.81%),
6.25%
,
10/23/34
...............
USD
44
47,009
(1-day
SOFR
+
1.62%),
5.34%
,
01/23/35
...............
15
15,059
Juniper
Networks,
Inc.
,
3.75%
,
08/15/29
.................
16
14,895
KeyCorp
,
(SOFR
Index
+
2.42%),
6.40%
,
03/06/35
(b)
...........
5
5,106
KLA
Corp.
,
3.30%
,
03/01/50
......
48
35,233
Lowe's
Cos.,
Inc.
2.63%
,
04/01/31
............
32
27,536
2.80%
,
09/15/41
............
72
51,176
Marriott
International,
Inc.
,
5.30%
,
05/15/34
.................
62
61,322
Marsh
&
McLennan
Cos.,
Inc.
,
5.45%
,
03/15/53
.................
11
11,072
Meta
Platforms,
Inc.
4.65%
,
08/15/62
............
13
11,673
5.75%
,
05/15/63
............
38
40,737
MidAmerican
Energy
Co.
,
5.85%
,
09/15/54
.................
50
53,349
Moody's
Corp.
,
3.25%
,
01/15/28
....
39
37,080
Morgan
Stanley
(b)
(1-day
SOFR
+
0.88%),
1.59%
,
05/04/27
...............
44
40,700
(1-day
SOFR
+
2.24%),
6.30%
,
10/18/28
...............
21
21,725
(1-day
SOFR
+
1.63%),
5.45%
,
07/20/29
...............
228
229,999
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
37
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
(1-day
SOFR
+
1.83%),
6.41%
,
11/01/29
...............
USD
159
$
166,721
(1-day
SOFR
+
1.14%),
2.70%
,
01/22/31
...............
66
57,663
(1-day
SOFR
+
3.12%),
3.62%
,
04/01/31
...............
192
176,088
(1-day
SOFR
+
1.73%),
5.47%
,
01/18/35
...............
10
10,089
Motorola
Solutions,
Inc.
,
5.60%
,
06/01/32
.................
105
106,432
Nasdaq,
Inc.
5.55%
,
02/15/34
............
55
55,928
6.10%
,
06/28/63
............
9
9,596
National
Grid
North
America,
Inc.
,
4.67%
,
09/12/33
(d)
...........
EUR
100
114,584
Newmont
Corp.
,
2.80%
,
10/01/29
...
USD
21
18,841
NNN
REIT,
Inc.
3.50%
,
04/15/51
............
6
4,343
3.00%
,
04/15/52
............
13
8,367
Norfolk
Southern
Corp.
4.15%
,
02/28/48
............
33
27,380
5.35%
,
08/01/54
............
4
3,971
Northern
States
Power
Co.
4.50%
,
06/01/52
............
10
8,783
5.40%
,
03/15/54
............
4
4,028
Ohio
Power
Co.
Series
P
,
2.60%
,
04/01/30
.....
5
4,352
Series
Q
,
1.63%
,
01/15/31
.....
58
46,267
5.00%
,
06/01/33
............
35
34,343
Series
R
,
2.90%
,
10/01/51
.....
61
39,165
Omnicom
Group,
Inc.
3.60%
,
04/15/26
............
82
79,644
2.60%
,
08/01/31
............
5
4,235
ONE
Gas,
Inc.
,
5.10%
,
04/01/29
....
4
4,026
Oracle
Corp.
3.60%
,
04/01/40
............
122
96,169
4.00%
,
07/15/46
............
41
32,298
4.00%
,
11/15/47
............
4
3,123
3.60%
,
04/01/50
............
10
7,225
5.55%
,
02/06/53
............
16
15,652
4.38%
,
05/15/55
............
5
4,024
Otis
Worldwide
Corp.
,
5.25%
,
08/16/28
49
49,637
Owens
Corning
,
3.95%
,
08/15/29
...
9
8,509
Pacific
Gas
&
Electric
Co.
4.95%
,
07/01/50
............
45
38,708
3.50%
,
08/01/50
............
89
60,810
Paramount
Global
5.85%
,
09/01/43
............
9
7,292
5.25%
,
04/01/44
............
5
3,718
4.90%
,
08/15/44
............
3
2,145
4.60%
,
01/15/45
............
2
1,378
(5-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
4.00%),
6.38%
,
03/30/62
(b)
...
3
2,772
PECO
Energy
Co.
3.90%
,
03/01/48
............
34
27,557
2.80%
,
06/15/50
............
6
3,924
2.85%
,
09/15/51
............
29
18,721
4.60%
,
05/15/52
............
26
23,422
4.38%
,
08/15/52
............
5
4,341
Pfizer
Investment
Enterprises
Pte.
Ltd.
4.75%
,
05/19/33
............
38
37,414
5.30%
,
05/19/53
............
46
45,735
Piedmont
Natural
Gas
Co.,
Inc.
,
2.50%
,
03/15/31
.................
11
9,277
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
Prologis
LP
,
4.38%
,
09/15/48
......
USD
12
$
10,469
Public
Service
Co.
of
New
Hampshire
,
5.15%
,
01/15/53
............
32
31,292
Public
Service
Electric
&
Gas
Co.
3.70%
,
05/01/28
............
63
60,492
5.45%
,
08/01/53
............
56
57,523
5.45%
,
03/01/54
............
16
16,498
Realty
Income
Corp.
,
3.10%
,
12/15/29
9
8,170
Republic
Services,
Inc.
,
3.95%
,
05/15/28
.................
52
50,283
RPM
International,
Inc.
,
2.95%
,
01/15/32
.................
25
21,159
Ryder
System,
Inc.
,
4.30%
,
06/15/27
4
3,897
San
Diego
Gas
&
Electric
Co.
,
5.35%
,
04/01/53
.................
45
44,322
Santander
Holdings
USA,
Inc.
,
(1-day
SOFR
+
2.50%),
6.17%
,
01/09/30
(b)
10
10,090
Solventum
Corp.
(a)
5.45%
,
02/25/27
............
119
119,411
6.00%
,
05/15/64
............
12
11,895
Southern
California
Edison
Co.
5.30%
,
03/01/28
............
23
23,256
5.65%
,
10/01/28
............
10
10,287
Series
A
,
4.20%
,
03/01/29
.....
14
13,496
2.85%
,
08/01/29
............
52
46,827
2.25%
,
06/01/30
............
82
69,680
5.95%
,
11/01/32
............
112
117,449
Spire
Missouri,
Inc.
,
3.30%
,
06/01/51
6
4,173
Sprint
LLC
7.13%
,
06/15/24
............
96
96,164
7.63%
,
02/15/25
............
561
567,631
7.63%
,
03/01/26
............
193
199,396
Texas
Instruments,
Inc.
4.15%
,
05/15/48
............
5
4,305
5.00%
,
03/14/53
............
12
11,773
Thermo
Fisher
Scientific,
Inc.
,
4.95%
,
11/21/32
..................
101
101,435
T-Mobile
USA,
Inc.
4.75%
,
02/01/28
............
576
568,356
3.88%
,
04/15/30
............
11
10,305
3.50%
,
04/15/31
............
15
13,546
5.20%
,
01/15/33
............
41
41,046
Union
Electric
Co.
,
2.63%
,
03/15/51
.
15
9,227
Union
Pacific
Corp.
3.84%
,
03/20/60
............
20
15,356
3.55%
,
05/20/61
............
40
28,708
3.80%
,
04/06/71
............
8
5,941
UnitedHealth
Group,
Inc.
4.25%
,
04/15/47
............
51
43,981
6.05%
,
02/15/63
............
16
17,594
Verizon
Communications,
Inc.
4.02%
,
12/03/29
............
52
49,614
2.55%
,
03/21/31
............
50
42,716
2.36%
,
03/15/32
............
241
198,053
5.25%
,
03/16/37
............
31
31,341
2.65%
,
11/20/40
............
6
4,228
3.70%
,
03/22/61
............
16
11,699
Waste
Management,
Inc.
4.15%
,
04/15/32
............
27
25,790
4.88%
,
02/15/34
............
11
10,925
Wells
Fargo
&
Co.
(b)
(1-day
SOFR
+
1.74%),
5.57%
,
07/25/29
...............
34
34,403
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
38
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
(1-day
SOFR
+
1.79%),
6.30%
,
10/23/29
...............
USD
4
$
4,166
(1-day
SOFR
+
1.50%),
5.20%
,
01/23/30
...............
27
26,943
(1-day
SOFR
+
2.02%),
5.39%
,
04/24/34
...............
51
50,683
(1-day
SOFR
+
1.99%),
5.56%
,
07/25/34
...............
111
111,429
(1-day
SOFR
+
2.06%),
6.49%
,
10/23/34
...............
4
4,290
10,432,684
Total
Corporate
Bonds
—
32.9%
(Cost:
$
13,910,848
)
..............................
13,710,343
Foreign
Agency
Obligations
France
—
0.3%
Electricite
de
France
SA
,
3.75%
,
06/05/27
(d)
................
EUR
100
108,431
Italy
—
0.2%
ACEA
SpA
,
0.00%
,
09/28/25
(d)
.....
100
101,834
Supranational
—
0.4%
European
Union
,
2.50%
,
10/04/52
(d)
.
170
158,015
Total
Foreign
Agency
Obligations
—
0.9%
(Cost:
$
356,004
)
................................
368,280
Foreign
Government
Obligations
Belgium
—
0.4%
Kingdom
of
Belgium
,
3.30%
,
06/22/54
(a)
(d)
...............
139
148,607
France
—
0.3%
French
Republic
,
3.00%
,
05/25/54
(a)
(d)
141
143,936
Mexico
—
0.8%
United
Mexican
States
8.50%
,
03/01/29
............
MXN
10
58,225
8.50%
,
05/31/29
............
20
116,620
2.66%
,
05/24/31
............
USD
200
166,800
341,645
Panama
—
0.4%
Republic
of
Panama
,
3.88%
,
03/17/28
200
182,250
Peru
—
0.1%
Republic
of
Peru
,
3.55%
,
03/10/51
..
35
25,217
Uruguay
—
0.1%
Oriental
Republic
of
Uruguay
,
5.10%
,
06/18/50
.................
25
24,180
Total
Foreign
Government
Obligations
—
2.1%
(Cost:
$
932,975
)
................................
865,835
Security
Par
(000)
Pa
r
(
000)
Value
Municipal
Bonds
California
-
0
.4
%
Bay
Area
Toll
Authority
,
Series
2010S-1
,
RB
,
7.04
%
,
04/01/50
.........
USD
20
$
24,002
Los
Angeles
Community
College
District
,
Series
2010E
,
GO
,
6.60
%
,
08/01/42
............
5
5,645
Los
Angeles
Unified
School
District
,
Series
2010RY
,
GO
,
6.76
%
,
07/01/34
............
20
22,026
State
of
California
,
Series
2018
,
GO
,
4.60
%
,
04/01/38
............
70
67,617
University
of
California
,
Series
2012AD
,
RB
,
4.86
%
,
05/15/2112
........
15
13,912
133,202
Illinois
-
0
.1
%
State
of
Illinois
,
Series
2003
,
GO
,
5.10
%
,
06/01/33
............
40
39,664
New
Jersey
-
0
.0
%
New
Jersey
Turnpike
Authority
,
Series
2009F
,
RB
,
7.41
%
,
01/01/40
....
8
9,620
New
York
-
0
.1
%
Metropolitan
Transportation
Authority
Series
2009A-1
,
RB
,
5.87
%
,
11/15/39
..........
10
10,272
Series
2010A
,
RB
,
6.67
%
,
11/15/39
10
11,007
New
York
City
Municipal
Water
Finance
Authority
,
Series
2010EE
,
RB
,
6.01
%
,
06/15/42
............
5
5,365
Port
Authority
of
New
York
&
New
Jersey
,
Series
2011-168
,
RB
,
4.93
%
,
10/01/51
............
15
14,739
41,383
Ohio
-
0
.0
%
American
Municipal
Power,
Inc.
,
Series
2010A
,
RB
,
8.08
%
,
02/15/50
....
10
13,380
Texas
-
0
.0
%
City
of
San
Antonio
Electric
&
Gas
Systems
,
Series
2010A
,
RB
,
5.81
%
,
02/01/41
............
10
10,535
State
of
Texas
,
Series
2009A
,
GO
,
5.52
%
,
04/01/39
............
15
15,512
26,047
Total
Municipal
Bonds
—
0.6%
(Cost:
$
324,115
)
................................
263,296
Non-Agency
Mortgage-Backed
Securities
Collateralized
Mortgage
Obligations
—
1
.1
%
United
States
—
1.1%
Alternative
Loan
Trust
(b)
Series
2006-OA6,
Class
1A1A,
(1-
mo.
CME
Term
SOFR
at
0.42%
Floor
+
0.53%),
5.86%,
07/25/46
16
14,213
Series
2006-OC10,
Class
2A3,
(1-
mo.
CME
Term
SOFR
at
0.46%
Floor
+
0.57%),
5.90%,
11/25/36
189
152,047
Impac
Secured
Assets
Trust,
Series
2006-2,
Class
1A2B,
(1-mo.
CME
Term
SOFR
at
0.17%
Floor
and
11.50%
Cap
+
0.45%),
5.78%,
08/25/36
(b)
................
98
97,827
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
39
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
United
States
(continued)
RFMSI
Trust,
Series
2007-SA4,
Class
3A1,
5.42%,
10/25/37
(b)
........
USD
130
$
77,830
TVC
Mortgage
Trust,
Series
2023-
RTL1,
Class
A1,
8.25%,
11/25/27
(a)
(c)
100
100,065
441,982
Commercial
Mortgage-Backed
Securities
—
3
.9
%
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
117,251
United
States
—
3.6%
1211
Avenue
of
the
Americas
Trust,
Series
2015-1211,
Class
A1A2,
3.90%,
08/10/35
(a)
...........
250
240,853
BANK,
Series
2022-BNK41,
Class
A4,
3.79%,
04/15/65
(b)
...........
80
73,409
Beast
Mortgage
Trust,
Series
2021-
SSCP,
Class
A,
(1-mo.
CME
Term
SOFR
at
0.75%
Floor
+
0.86%),
6.19%,
04/15/36
(a)
(b)
..........
29
28,708
BX
Commercial
Mortgage
Trust
(a)(b)
Series
2020-VKNG,
Class
A,
(1-mo.
CME
Term
SOFR
at
0.93%
Floor
+
1.04%),
6.37%,
10/15/37
...
111
110,913
Series
2022-LP2,
Class
A,
(1-mo.
CME
Term
SOFR
at
1.01%
Floor
+
1.01%),
6.34%,
02/15/39
...
48
48,064
BX
Trust,
Series
2022-IND,
Class
A,
(1-mo.
CME
Term
SOFR
at
1.49%
Floor
+
1.49%),
6.82%,
04/15/37
(a)
(b)
46
45,988
Commercial
Mortgage
Trust,
Series
2013-300P,
Class
D,
4.39%,
08/10/30
(a)
(b)
...............
25
20,318
Credit
Suisse
Mortgage
Capital
Certificates,
Series
2019-ICE4,
Class
A,
(1-mo.
CME
Term
SOFR
at
0.98%
Floor
+
1.03%),
6.35%,
05/15/36
(a)
(b)
...............
60
59,851
Grace
Trust,
Series
2020-GRCE,
Class
D,
2.68%,
12/10/40
(a)
(b)
........
250
189,758
J.P.
Morgan
Chase
Commercial
Mortgage
Securities
Trust
(a)(b)
Series
2021-MHC,
Class
D,
(1-mo.
CME
Term
SOFR
at
1.70%
Floor
+
1.81%),
7.14%,
04/15/38
...
250
248,281
Series
2022-OPO,
Class
D,
3.45%,
01/05/39
...............
80
57,636
Morgan
Stanley
Capital
I
Trust,
Series
2017-ASHF,
Class
G,
(1-mo.
CME
Term
SOFR
at
6.90%
Floor
+
7.20%),
12.52%,
11/15/34
(a)
(b)
....
20
18,580
SUMIT
Mortgage
Trust,
Series
2022-
BVUE,
Class
D,
2.89%,
02/12/41
(a)
(b)
40
27,400
Velocity
Commercial
Capital
Loan
Trust,
Series
2021-4,
Class
M4,
4.48%,
12/26/51
(a)
(b)
..........
452
338,452
Wells
Fargo
Commercial
Mortgage
Trust,
Series
2015-C26,
Class
AS,
3.58%,
02/15/48
............
20
19,452
1,527,663
Security
Par
(000)
Par
(000)
Value
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0
.0
%
United
States
—
0.0%
BMO
Mortgage
Trust,
Series
2023-C5,
Class
XA,
0.73%,
06/15/56
(b)
....
USD
199
$
10,204
Total
Non-Agency
Mortgage-Backed
Securities
—
5.0%
(Cost:
$
2,308,207
)
..............................
2,097,100
U.S.
Government
Sponsored
Agency
Securities
Commercial
Mortgage-Backed
Securities
—
0.1%
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes
,
Series
2018-
W5FX
,
Class
CFX
,
(1-mo.
LIBOR
USD
+
0.00%),
3.54
%
,
04/25/28
(a)
(b)
50
42,891
Interest
Only
Collateralized
Mortgage
Obligations
—
0.3%
Federal
Home
Loan
Mortgage
Corp.
,
Series
389
,
Class
C45
,
3.00
%
,
10/15/52
............
246
40,517
Federal
National
Mortgage
Association
Series
428
,
Class
C16
,
3.00
%
,
03/25/50
........
91
15,476
Series
437
,
Class
C11
,
3.00
%
,
07/25/52
........
96
16,252
Government
National
Mortgage
Association
Series
2021-58
,
Class
IY
,
3.00
%
,
02/20/51
........
68
10,816
Series
2021-78
,
Class
IP
,
3.00
%
,
05/20/51
........
72
11,372
Series
2021-97
,
Class
LI
,
3.00
%
,
08/20/50
........
61
9,705
Series
2022-78
,
Class
D
,
3.00
%
,
08/20/51
........
150
23,484
Series
2022-85
,
Class
IK
,
3.00
%
,
05/20/51
........
79
12,477
140,099
Mortgage-Backed
Securities
—
51.7%
Federal
National
Mortgage
Association
,
3.00
%
,
12/01/50
............
625
550,154
Government
National
Mortgage
Association
2.00
%
,
08/20/50
-
11/20/50
...
104
84,983
2.50
%
,
10/20/51
-
12/20/51
...
87
74,326
3.00
%
,
03/20/52
..........
276
243,555
3.50
%
,
03/20/52
..........
59
54,127
4.00
%
,
03/20/52
..........
14
12,941
2.00
%
,
04/15/54
(e)
.........
452
369,993
2.50
%
,
04/15/54
(e)
.........
482
410,479
3.00
%
,
04/15/54
(e)
.........
142
124,947
3.50
%
,
04/15/54
(e)
.........
2,092
1,903,191
4.00
%
,
04/15/54
(e)
.........
197
183,863
5.00
%
,
04/15/54
(e)
.........
156
153,310
6.00
%
,
04/15/54
(e)
.........
103
103,900
6.50
%
,
04/15/54
(e)
.........
89
90,484
Uniform
Mortgage-Backed
Securities
1.50
%
,
04/25/39
-
04/25/54
(e)
..
631
509,378
2.00
%
,
04/25/39
(e)
.........
471
417,328
2.50
%
,
04/25/39
(e)
.........
188
171,037
3.00
%
,
04/25/39
-
04/25/54
(e)
..
261
232,263
3.50
%
,
04/25/39
-
04/25/54
(e)
..
709
636,747
4.00
%
,
04/25/39
-
04/25/54
(e)
..
207
192,489
4.50
%
,
04/25/39
-
04/25/54
(e)
..
1,071
1,020,992
4.00
%
,
04/01/47
-
06/01/52
...
1,353
1,264,293
4.50
%
,
06/01/50
..........
199
192,665
2.00
%
,
10/01/51
-
11/01/51
...
2,634
2,090,626
2.50
%
,
11/01/51
-
12/01/51
...
2,898
2,410,211
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
40
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Mortgage-Backed
Securities
(continued)
3.00
%
,
11/01/51
..........
USD
246
$
216,279
3.50
%
,
11/01/51
..........
914
839,931
5.00
%
,
04/01/53
..........
123
120,464
5.50
%
,
09/01/53
..........
294
292,386
6.00
%
,
09/01/53
-
01/01/54
...
354
357,666
6.50
%
,
10/01/53
-
01/01/54
...
341
349,657
7.00
%
,
12/01/53
-
01/01/54
...
152
156,778
7.50
%
,
12/01/53
-
01/01/54
...
20
21,042
5.00
%
,
04/25/54
(e)
.........
1,300
1,268,643
5.50
%
,
04/25/54
(e)
.........
2,117
2,106,372
6.50
%
,
04/25/54
(e)
.........
897
915,983
7.00
%
,
04/25/54
-
05/25/54
(e)
..
1,356
1,396,748
21,540,231
Total
U.S.
Government
Sponsored
Agency
Securities
—
52
.1
%
(Cost:
$
22,889,243
)
..............................
21,723,221
U.S.
Treasury
Obligations
U.S.
Treasury
Bonds
4.50
%
,
08/15/39
............
142
145,899
1.13
%
,
05/15/40
-
08/15/40
.....
280
174,136
4.38
%
,
05/15/40
-
05/15/41
.....
92
92,003
1.38
%
,
11/15/40
............
140
90,027
4.25
%
,
11/15/40
-
02/15/54
.....
156
153,773
4.75
%
,
02/15/41
-
11/15/53
.....
255
268,093
1.75
%
,
08/15/41
............
140
94,478
2.00
%
,
11/15/41
-
08/15/51
.....
173
117,288
3.00
%
,
05/15/42
-
08/15/52
.....
597
470,535
4.00
%
,
11/15/42
-
11/15/52
.....
142
133,626
3.88
%
,
02/15/43
............
605
558,901
3.63
%
,
08/15/43
-
05/15/53
.....
150
132,167
3.75
%
,
11/15/43
............
75
67,843
2.75
%
,
11/15/47
............
198
147,943
2.88
%
,
05/15/49
-
05/15/52
.....
233
176,529
2.25
%
,
08/15/49
-
02/15/52
.....
145
96,111
2.38
%
,
05/15/51
............
107
72,775
1.88
%
,
11/15/51
............
78
46,598
4.13
%
,
08/15/53
............
178
170,882
U.S.
Treasury
Inflation
Linked
Notes
,
2.38
%
,
10/15/28
............
910
931,353
U.S.
Treasury
Notes
2.63
%
,
04/15/25
............
142
138,974
0.38
%
,
04/30/25
-
09/30/27
.....
353
330,728
2.88
%
,
06/15/25
-
04/30/29
.....
192
186,140
0.25
%
,
06/30/25
-
07/31/25
.....
220
207,195
3.50
%
,
09/15/25
-
01/31/28
.....
154
151,103
0.50
%
,
02/28/26
-
05/31/27
.....
447
402,153
4.63
%
,
02/28/26
-
09/30/30
.....
80
79,957
0.75
%
,
03/31/26
............
424
392,955
0.88
%
,
06/30/26
-
09/30/26
.....
217
199,691
0.63
%
,
07/31/26
............
52
47,523
1.13
%
,
10/31/26
............
42
38,574
1.63
%
,
11/30/26
-
05/15/31
.....
234
205,315
4.38
%
,
12/15/26
............
1
998
1.50
%
,
01/31/27
............
5
4,611
4.13
%
,
02/15/27
-
11/15/32
.....
113
112,137
1.88
%
,
02/28/27
-
02/28/29
.....
149
138,536
4.25
%
,
03/15/27
-
02/28/31
.....
237
236,204
2.75
%
,
04/30/27
-
08/15/32
.....
210
196,153
1.25
%
,
03/31/28
-
08/15/31
.....
724
618,060
3.63
%
,
03/31/28
............
423
412,651
4.00
%
,
06/30/28
-
02/15/34
.....
588
579,503
1.75
%
,
01/31/29
............
8
7,136
4.88
%
,
10/31/30
............
3
3,109
Security
Par
(000)
Par
(000)
Value
U.S.
Treasury
Obligations
(continued)
3.38
%
,
05/15/33
............
USD
7
$
6,558
Total
U.S.
Treasury
Obligations
—
21.2%
(Cost:
$
9,268,407
)
..............................
8,836,924
Total
Long-Term
Investments
—
126
.7
%
(Cost:
$
55,044,206
)
..............................
52,819,794
Shares
Shares
Short-Term
Securities
Money
Market
Funds
—
2.2%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
,
5.19
%
(f)
(g)
....
923,213
923,213
Total
Short-Term
Securities
—
2
.2
%
(Cost:
$
923,213
)
................................
923,213
Total
Options
Purchased
—
0
.0
%
(Cost:
$
9,637
)
.................................
10,566
Total
Investments
Before
Options
Written
and
TBA
Sale
Commitments
—
128.9%
(Cost:
$
55,977,056
)
..............................
53,753,573
Total
Options
Written
—
(
0
.1
)
%
(Premiums
Received
—
$
(
37,173
)
)
...................
(
31,842
)
Par
(000)
Pa
r
(
000)
TBA
Sale
Commitments
(e)
Government
National
Mortgage
Association
4.50
%
,
04/15/54
............
(
133
)
(
127,790
)
5.50
%
,
04/15/54
............
(
158
)
(
157,852
)
Uniform
Mortgage-Backed
Securities
1.50
%
,
04/25/39
............
(
3
)
(
2,598
)
2.00
%
,
04/25/39
-
04/25/54
.....
(
272
)
(
215,719
)
2.50
%
,
04/25/39
-
04/25/54
.....
(
1,139
)
(
941,588
)
3.50
%
,
04/25/39
-
05/25/54
.....
(
1,835
)
(
1,642,937
)
4.00
%
,
04/25/54
-
05/25/54
.....
(
1,016
)
(
941,134
)
4.50
%
,
04/25/54
............
(
24
)
(
22,853
)
5.00
%
,
04/25/54
............
(
640
)
(
624,425
)
5.50
%
,
04/25/54
............
(
1,053
)
(
1,047,773
)
6.00
%
,
04/25/54
............
(
65
)
(
65,592
)
6.50
%
,
04/25/54
-
05/25/54
.....
(
1,911
)
(
1,951,519
)
7.00
%
,
04/25/54
............
(
400
)
(
412,284
)
Total
TBA
Sale
Commitments
—
(
19
.5
)
%
(Proceeds:
$
(
8,161,737
)
)
..........................
(
8,154,064
)
Total
Investments
Net
of
Options
Written
and
TBA
Sale
Commitments
—
109
.3
%
(Cost:
$
47,778,146
)
..............................
45,567,667
Liabilities
in
Excess
of
Other
Assets
—
(
9.3
)
%
............
(
3,878,849
)
Net
Assets
—
100.0%
..............................
$
41,688,818
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
41
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the six
months
ended
March
31,
2024
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
evel
(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
09/30/23
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
03/31/24
Shares
Held
at
03/31/24
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
.
$
2,232,587
$
—
$
(
1,313,034
)
(a)
$
3,660
$
—
$
923,213
923,213
$
41,204
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
42
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
...................................................
8
06/18/24
$
886
$
(
196
)
U.S.
Treasury
Long
Bond
.....................................................
3
06/18/24
361
3,378
U.S.
Treasury
Ultra
Bond
.....................................................
3
06/18/24
387
5,430
U.S.
Treasury
2-Year
Note
....................................................
14
06/28/24
2,863
(
3,373
)
U.S.
Treasury
5-Year
Note
....................................................
14
06/28/24
1,498
(
858
)
4,381
Short
Contracts
Euro-Bobl
...............................................................
7
06/06/24
893
(
4,987
)
Euro-Bund
..............................................................
4
06/06/24
576
(
6,384
)
Euro-Schatz
.............................................................
6
06/06/24
684
(
517
)
U.S.
Treasury
10-Year
Ultra
Note
...............................................
10
06/18/24
1,146
(
4,714
)
(
16,602
)
$
(
12,221
)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation
(Depreciation)
USD
2,178
EUR
2,000
Deutsche
Bank
AG
06/20/24
$
13
USD
7,633
EUR
7,000
JPMorgan
Chase
Bank
NA
06/20/24
57
USD
125,318
EUR
115,000
Morgan
Stanley
&
Co.
International
plc
06/20/24
848
USD
13,031
EUR
12,000
State
Street
Bank
and
Trust
Co.
06/20/24
43
USD
2,960,822
EUR
2,707,700
UBS
AG
06/20/24
30,142
$
31,103
OTC
Currency
Options
Purchased
Description
Counterparty
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
USD
Currency
...........................
Bank
of
America
NA
03/06/26
CNH
7.75
USD
1,154
$
10,307
OTC
Interest
Rate
Swaptions
Purchased
Paid
by
the
Fund
Received
by
the
Fund
Description
Rate
Frequency
Rate
Frequency
Counterparty
Expiration
Date
Exercise
Rate
Notional
Amount
(000)
Value
Call
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.33%
Annual
Bank
of
America
NA
04/05/24
3
.33
%
USD
124
$
—
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.28%
Annual
Bank
of
America
NA
04/12/24
3
.28
USD
123
1
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.51%
Annual
Deutsche
Bank
AG
04/19/24
3
.51
USD
121
59
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.43%
Annual
JPMorgan
Chase
Bank
NA
04/26/24
3
.43
USD
114
57
117
Put
10-Year
Interest
Rate
Swap
(a)
4.13%
Annual
1-day
SOFR
Annual
Bank
of
America
NA
04/05/24
4
.13
USD
124
6
10-Year
Interest
Rate
Swap
(a)
4.08%
Annual
1-day
SOFR
Annual
Bank
of
America
NA
04/12/24
4
.08
USD
123
62
10-Year
Interest
Rate
Swap
(a)
4.31%
Annual
1-day
SOFR
Annual
Deutsche
Bank
AG
04/19/24
4
.31
USD
121
16
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
43
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)
4.23%
Annual
1-day
SOFR
Annual
JPMorgan
Chase
Bank
NA
04/26/24
4
.23
%
USD
114
$
58
142
$
259
(a)
Forward
settling
swaption.
OTC
Interest
Rate
Swaptions
Written
Paid
by
the
Fund
Received
by
the
Fund
Description
Rate
Frequency
Rate
Frequency
Counterparty
Expiration
Date
Exercise
Rate
Notional
Amount
(000)
Value
Call
10-Year
Interest
Rate
Swap
(a)
3.53%
Annual
1-day
SOFR
Annual
Bank
of
America
NA
04/05/24
3
.53
%
USD
124
$
(
3
)
10-Year
Interest
Rate
Swap
(a)
3.48%
Annual
1-day
SOFR
Annual
Bank
of
America
NA
04/12/24
3
.48
USD
123
(
15
)
10-Year
Interest
Rate
Swap
(a)
3.71%
Annual
1-day
SOFR
Annual
Deutsche
Bank
AG
04/19/24
3
.71
USD
121
(
359
)
10-Year
Interest
Rate
Swap
(a)
3.63%
Annual
1-day
SOFR
Annual
JPMorgan
Chase
Bank
NA
04/26/24
3
.63
USD
114
(
276
)
10-Year
Interest
Rate
Swap
(a)
4.48%
Semi-Annual
1-day
SOFR
Annual
JPMorgan
Chase
Bank
NA
10/20/25
4
.48
USD
17
(
1,346
)
10-Year
Interest
Rate
Swap
(a)
3.96%
Semi-Annual
1-day
SOFR
Annual
Deutsche
Bank
AG
11/17/25
3
.96
USD
6
(
287
)
10-Year
Interest
Rate
Swap
(a)
4.00%
Semi-Annual
1-day
SOFR
Annual
Bank
of
America
NA
11/17/25
4
.00
USD
31
(
1,652
)
10-Year
Interest
Rate
Swap
(a)
3.97%
Semi-Annual
1-day
SOFR
Annual
Citibank
NA
11/20/25
3
.97
USD
38
(
1,956
)
10-Year
Interest
Rate
Swap
(a)
3.84%
Semi-Annual
1-day
SOFR
Annual
Bank
of
America
NA
11/28/25
3
.84
USD
37
(
1,677
)
10-Year
Interest
Rate
Swap
(a)
3.96%
Semi-Annual
1-day
SOFR
Annual
Citibank
NA
11/28/25
3
.96
USD
22
(
1,116
)
10-Year
Interest
Rate
Swap
(a)
3.40%
Annual
1-day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
12/15/25
3
.40
USD
6
(
175
)
10-Year
Interest
Rate
Swap
(a)
3.55%
Annual
1-day
SOFR
Annual
Morgan
Stanley
&
Co.
International
plc
03/06/26
3
.55
USD
39
(
1,444
)
10-Year
Interest
Rate
Swap
(a)
3.59%
Annual
1-day
SOFR
Annual
Deutsche
Bank
AG
03/06/26
3
.59
USD
29
(
1,116
)
10-Year
Interest
Rate
Swap
(a)
3.54%
Annual
1-day
SOFR
Annual
Citibank
NA
03/09/26
3
.54
USD
46
(
1,676
)
10-Year
Interest
Rate
Swap
(a)
3.55%
Annual
1-day
SOFR
Annual
Citibank
NA
03/09/26
3
.55
USD
37
(
1,359
)
10-Year
Interest
Rate
Swap
(a)
3.55%
Annual
1-day
SOFR
Annual
Goldman
Sachs
International
03/11/26
3
.55
USD
23
(
851
)
10-Year
Interest
Rate
Swap
(a)
3.64%
Annual
1-day
SOFR
Annual
Bank
of
America
NA
03/13/26
3
.64
USD
38
(
1,560
)
(
16,868
)
Put
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.93%
Annual
Bank
of
America
NA
04/05/24
3
.93
USD
124
(
165
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.88%
Annual
Bank
of
America
NA
04/12/24
3
.88
USD
123
(
452
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
4.11%
Annual
Deutsche
Bank
AG
04/19/24
4
.11
USD
121
(
99
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
4.03%
Annual
JPMorgan
Chase
Bank
NA
04/26/24
4
.03
USD
114
(
242
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
4.48%
Semi-Annual
JPMorgan
Chase
Bank
NA
10/20/25
4
.48
USD
17
(
290
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.96%
Semi-Annual
Deutsche
Bank
AG
11/17/25
3
.96
USD
6
(
166
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
4.00%
Semi-Annual
Bank
of
America
NA
11/17/25
4
.00
USD
31
(
878
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.97%
Semi-Annual
Citibank
NA
11/20/25
3
.97
USD
38
(
1,112
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.84%
Semi-Annual
Bank
of
America
NA
11/28/25
3
.84
USD
37
(
1,216
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.96%
Semi-Annual
Citibank
NA
11/28/25
3
.96
USD
22
(
647
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.40%
Annual
Morgan
Stanley
&
Co.
International
plc
12/15/25
3
.40
USD
6
(
292
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.55%
Annual
Morgan
Stanley
&
Co.
International
plc
03/06/26
3
.55
USD
39
(
1,753
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.59%
Annual
Deutsche
Bank
AG
03/06/26
3
.59
USD
29
(
1,263
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.54%
Annual
Citibank
NA
03/09/26
3
.54
USD
46
(
2,096
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.55%
Annual
Citibank
NA
03/09/26
3
.55
USD
37
(
1,658
)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
44
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
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.55%
Annual
Goldman
Sachs
International
03/11/26
3
.55
%
USD
23
$
(
1,037
)
10-Year
Interest
Rate
Swap
(a)
1-day
SOFR
Annual
3.64%
Annual
Bank
of
America
NA
03/13/26
3
.64
USD
38
(
1,608
)
(
14,974
)
$
(
31,842
)
(a)
Forward
settling
swaption.
Centrally
Cleared
Credit
Defa
ul
t
Swaps
—
Sell
Protection
Reference
Obligation/Index
Financing
Rate
Received
by
the
Fund
Payment
Frequency
Termination
Date
Credit
Rating
(a)
Notional
Amount
(000)
(b)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Markit
CDX
North
American
High
Yield
Index
Series
42.V1
...........
5
.00
%
Quarterly
06/20/29
B+
USD
707
$
52,203
$
51,328
$
875
(a)
Using
the
rating
of
the
issuer
or
the
underlying
securities
of
the
index,
as
applicable,
provided
by
S&P
Global
Ratings.
(b)
The
maximum
potential
amount
the
Fund
may
pay
should
a
negative
credit
event
take
place
as
defined
under
the
terms
of
the
agreement.
Centrally
Cleared
Interest
Rate
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Rate
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
4.17%
Semi-Annual
1-day
REPO_CORRA
Semi-Annual
03/22/26
CAD
592
$
125
$
—
$
125
1-day
SOFR
Annual
4.52%
Annual
03/26/26
USD
434
(
290
)
—
(
290
)
2.49%
Annual
6-mo.
EURIBOR
Semi-Annual
02/19/54
EUR
90
(
3,066
)
—
(
3,066
)
2.51%
Annual
6-mo.
EURIBOR
Semi-Annual
02/20/54
EUR
126
(
4,973
)
—
(
4,973
)
2.51%
Annual
6-mo.
EURIBOR
Semi-Annual
02/20/54
EUR
90
(
3,402
)
—
(
3,402
)
2.51%
Annual
6-mo.
EURIBOR
Semi-Annual
03/01/54
EUR
45
(
1,771
)
—
(
1,771
)
2.46%
Annual
6-mo.
EURIBOR
Semi-Annual
03/22/54
EUR
19
(
544
)
—
(
544
)
$
(
13,921
)
$
—
$
(
13,921
)
OTC
Credit
Default
Swap
s
—
Buy
Protection
Reference
Obligation/Index
Financing
Rate
Paid
by
the
Fund
Payment
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Abbott
Laboratories
........
1
.00
%
Quarterly
JPMorgan
Chase
Bank
NA
06/20/29
USD
17
$
(
455
)
$
(
404
)
$
(
51
)
$
–
$
–
$
–
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
1-day
REPO_CORRA
...................................
Canadian
Overnight
Repo
Rate
5
.05
%
1-day
SOFR
.........................................
Secured
Overnight
Financing
Rate
5
.32
6-mo.
EURIBOR
......................................
Euro
Interbank
Offered
Rate
3
.85
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
45
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
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)
............................................
$
51,328
$
—
$
1,000
$
(
14,046
)
$
—
OTC
Swaps
.....................................................
—
(
404
)
—
(
51
)
—
Options
Written
...................................................
N/A
N/A
6,481
(
1,150
)
(
31,842
)
(a)
Includes
cumulative
appreciation
(depreciation)
on
centrally
cleared
swaps,
as
reported
in
the
Schedule
of
Investments.
Only
current
day’s
variation
margin
is
reported
within
the
Statements
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
appreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
8,808
$
—
$
8,808
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
31,103
—
—
31,103
Options
purchased
(b)
Investments
at
value
—
unaffiliated
(c)
............
—
—
—
10,307
259
—
10,566
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
875
—
—
125
—
1,000
$
—
$
875
$
—
$
41,410
$
9,192
$
—
$
51,477
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
......
$
—
$
—
$
—
$
—
$
21,029
$
—
$
21,029
Options
written
(b)
Options
written
at
value
.....................
—
—
—
—
31,842
—
31,842
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
14,046
—
14,046
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
455
—
—
—
—
455
$
—
$
455
$
—
$
—
$
66,917
$
—
$
67,372
(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
March
31,
2024,
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
.......................
$
—
$
—
$
—
$
—
$
(
11,043
)
$
—
$
(
11,043
)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(
34,519
)
—
—
(
34,519
)
Options
purchased
(a)
.....................
—
—
—
(
5,430
)
(
179,217
)
—
(
184,647
)
Options
written
........................
—
—
—
1,274
134,359
—
135,633
Swaps
..............................
—
20,732
—
—
(
33,464
)
4,624
(
8,108
)
$
—
$
20,732
$
—
$
(38,675)
$
(89,365)
$
4,624
$
(102,684)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
46
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
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
c
ontracts
.......................
$
—
$
—
$
—
$
—
$
(
7,712
)
$
—
$
(
7,712
)
Forward
foreign
currency
exchange
contracts
....
—
—
—
10,188
—
—
10,188
Options
purchased
(b)
.....................
—
—
—
1,883
(
68,859
)
—
(
66,976
)
Options
written
........................
—
—
—
—
103,384
—
103,384
Swaps
..............................
—
902
—
—
(
21,182
)
(
1,888
)
(
22,168
)
$
—
$
902
$
—
$
12,071
$
5,631
$
(1,888)
$
16,716
(a)
Options
purchased
are
included
in
net
realized
gain
(loss)
from
investments
—
unaffiliated.
(b)
Options
purchased
are
included
in
net
change
in
unrealized
appreciation
(depreciation)
on
investments
—
unaffiliated.
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
6,950,428
Average
notional
value
of
contracts
—
short
.................................................................................
$
7,879,641
Forward
foreign
currency
exchange
contracts
Average
amounts
purchased
—
in
USD
....................................................................................
$
2,673,216
Options
Average
value
of
option
contracts
purchased
................................................................................
$
14,294
Average
value
of
option
contracts
written
...................................................................................
$
9,282
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
$
1,604,701
Average
notional
value
of
swaption
contracts
written
...........................................................................
$
4,981,897
Credit
default
swaps
Average
notional
value
—
buy
protection
...................................................................................
$
17,000
Average
notional
value
—
sell
protection
...................................................................................
$
353,500
Interest
rate
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
777,316
Average
notional
value
—
receives
fixed
rate
................................................................................
$
1,131,561
Inflation
swaps
Average
notional
value
—
pays
fixed
rate
...................................................................................
$
—
(a)
Average
notional
value
—
receives
fixed
rate
................................................................................
$
—
(a)
(a)
Derivative
financial
instrument
not
held
at
any
quarter-end.
The
risk
exposure
table
serves
as
an
indicator
of
activity
during
the
period.
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments
$
—
Futures
contracts
....................................................................................
$
—
$
2,823
Forward
f
oreign
currency
exchange
contracts
.................................................................
31,103
—
Options
(a)
(b)
........................................................................................
10,566
31,842
Swaps
—
centrally
cleared
..............................................................................
—
6,033
Swaps
—
OTC
(c)
.....................................................................................
—
455
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
41,669
$
41,153
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
—
(
8,856
)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
41,669
$
32,297
(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.
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
Schedules
of
Investments
47
The
following
tables
present
the
Fund's
derivative
assets
and
liabilities
by
counterparty
net
of
amounts
available
for
offset
under
an
MNA
and
net
of
the
related
collateral
received
and
pledged
by
the
Fund:
Counterparty
Derivative
Assets
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Received
Cash
Collateral
Received
Net
Amount
of
Derivative
Assets
(b)(c)
Bank
of
America
NA
..............................
$
10,376
$
(
9,226
)
$
—
$
—
$
1,150
Deutsche
Bank
AG
...............................
88
(
88
)
—
—
—
JPMorgan
Chase
Bank
NA
..........................
172
(
172
)
—
—
—
Morgan
Stanley
&
Co.
International
plc
..................
848
(
848
)
—
—
—
State
Street
Bank
and
Trust
Co.
......................
43
—
—
—
43
UBS
AG
......................................
30,142
—
—
—
30,142
$
41,669
$
(
10,334
)
$
—
$
—
$
31,335
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
..............................
$
9,226
$
(
9,226
)
$
—
$
—
$
—
Citibank
NA
....................................
11,620
—
—
—
11,620
Deutsche
Bank
AG
...............................
3,290
(
88
)
—
—
3,202
Goldman
Sachs
International
........................
1,888
—
—
—
1,888
JPMorgan
Chase
Bank
NA
..........................
2,609
(
172
)
—
—
2,437
Morgan
Stanley
&
Co.
International
plc
..................
3,664
(
848
)
—
—
2,816
$
32,297
$
(
10,334
)
$
—
$
—
$
21,963
(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.
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
March
31,
2024
BlackRock
Sustainable
Total
Return
Fund
48
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
...................................
$
—
$
4,954,795
$
—
$
4,954,795
Corporate
Bonds
........................................
—
13,710,343
—
13,710,343
Foreign
Agency
Obligations
.................................
—
368,280
—
368,280
Foreign
Government
Obligations
..............................
—
865,835
—
865,835
Municipal
Bonds
.........................................
—
263,296
—
263,296
Non-Agency
Mortgage-Backed
Securities
........................
—
2,097,100
—
2,097,100
U.S.
Government
Sponsored
Agency
Securities
....................
—
21,723,221
—
21,723,221
U.S.
Treasury
Obligations
...................................
—
8,836,924
—
8,836,924
Short-Term
Securities
Money
Market
Funds
......................................
923,213
—
—
923,213
Options
Purchased
Foreign
currency
exchange
contracts
...........................
—
10,307
—
10,307
Interest
rate
contracts
......................................
—
259
—
259
Liabilities
Investments
TBA
Sale
Commitments
....................................
—
(
8,154,064
)
—
(
8,154,064
)
$
923,213
$
44,676,296
$
—
$
45,599,509
Derivative
Financial
Instruments
(a)
Assets
Credit
contracts
...........................................
$
—
$
875
$
—
$
875
Foreign
currency
exchange
contracts
............................
—
31,103
—
31,103
Interest
rate
contracts
.......................................
8,808
125
—
8,933
Liabilities
Credit
contracts
...........................................
—
(
51
)
—
(
51
)
Interest
rate
contracts
.......................................
(
21,029
)
(
45,888
)
—
(
66,917
)
$
(
12,221
)
$
(
13,836
)
$
—
$
(
26,057
)
(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
(unaudited)
March
31,
2024
49
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)
..........................................................
$
44,048,528
$
45,443,437
$
52,830,360
Investments,
at
value
—
affiliated
(b)
............................................................
1,594,611
1,622,948
923,213
Cash
...............................................................................
24,361
9,434
—
Cash
pledged:
Futures
contracts
......................................................................
10,000
210,000
105,000
Centrally
cleared
swaps
..................................................................
—
118,000
122,000
Foreign
currency,
at
value
(c)
.................................................................
—
22,964
165,670
Receivables:
–
–
–
Investment
s
sold
......................................................................
162,182
115,652
216,743
Swaps
............................................................................
—
—
51,847
TBA
sale
commitments
..................................................................
—
436,125
8,161,737
Dividends
—
affiliated
...................................................................
3,736
6,187
3,227
Interest
—
unaffiliated
...................................................................
679,159
355,838
361,636
From
the
Manager
.....................................................................
11,875
15,995
31,877
Unrealized
appreciation
on:
–
–
–
Forward
foreign
currency
exchange
contracts
...................................................
—
10,543
31,103
Prepaid
e
xpenses
.......................................................................
31,793
37,285
58,659
Total
a
ssets
...........................................................................
46,566,245
48,404,408
63,063,072
LIABILITIES
Bank
overdraft
..........................................................................
—
—
6,838
Options
written,
at
value
(d)
..................................................................
—
—
31,842
TBA
sale
commitments,
at
value
(e)
............................................................
—
433,261
8,154,064
Payables:
–
–
–
Investments
purchased
..................................................................
1,658,630
1,287,555
12,784,336
Swaps
............................................................................
—
—
51,366
Accounting
services
fees
.................................................................
43,350
25,031
42,228
Administration
fees
.....................................................................
4
3
9
Capital
shares
redeemed
.................................................................
—
217
652
Custodian
fees
........................................................................
6,252
6,485
10,395
Income
dividend
distributions
..............................................................
247,921
158,452
151,884
Interest
expense
......................................................................
116
3,232
45,182
Professional
fees
......................................................................
54,939
34,413
46,697
Registration
fees
......................................................................
1,376
—
6
Service
fees
.........................................................................
19
22
27
Transfer
agent
fees
....................................................................
388
1,545
285
Other
accrued
expenses
.................................................................
11,474
16,137
39,132
Variation
margin
on
futures
contracts
.........................................................
397
869
2,823
Variation
margin
on
centrally
cleared
swaps
....................................................
—
9,260
6,033
Swap
premiums
received
..................................................................
—
—
404
Unrealized
depreciation
on:
–
–
–
OTC
swaps
..........................................................................
—
—
51
Total
li
abilities
..........................................................................
2,024,866
1,976,482
21,374,254
Commitments
and
contingent
liabilities
—
—
—
NET
ASSETS
..........................................................................
$
44,541,379
$
46,427,926
$
41,688,818
Statements
of
Assets
and
Liabilities
(unaudited)
(continued)
March
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
50
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
..........................................................................
$
50,066,743
$
50,125,682
$
50,404,460
Accumulated
loss
.......................................................................
(
5,525,364
)
(
3,697,756
)
(
8,715,642
)
NET
ASSETS
..........................................................................
$
44,541,379
$
46,427,926
$
41,688,818
(a)
Investments,
at
cost
—
unaffiliated
.....................................................
$
44,490,581
$
46,341,173
$
55,053,843
(b)
Investments,
at
cost
—
affiliated
.......................................................
$
1,594,611
$
1,622,948
$
923,213
(c)
Foreign
currency,
at
cost
...........................................................
$
—
$
23,848
$
166,418
(d)
Premiums
received
...............................................................
$
—
$
—
$
37,173
(e)
Proceeds
received
from
TBA
sale
commitments
.............................................
$
—
$
436,125
$
8,161,737
Statements
of
Assets
and
Liabilities
(unaudited)
(continued)
March
31,
2024
51
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
BlackRock
Sustainable
Total
Return
Fund
NET
ASSET
VALUE
Institutional
Net
assets
.........................................................................
$
235,016
$
205,432
$
512,886
Shares
outstanding
..................................................................
26,475
22,225
62,225
Net
asset
value
.....................................................................
$
8.88
$
9.24
$
8.24
Shares
authorized
...................................................................
Unlimited
Unlimited
500
million
Par
value
.........................................................................
$
0.001
$
0.001
$
0.10
Investor
A
Net
assets
.........................................................................
$
99,584
$
109,246
$
134,267
Shares
outstanding
..................................................................
11,219
11,816
16,290
Net
asset
value
.....................................................................
$
8.88
$
9.25
$
8.24
Shares
authorized
...................................................................
Unlimited
Unlimited
300
million
Par
value
.........................................................................
$
0.001
$
0.001
$
0.10
Class
K
Net
assets
.........................................................................
$
44,206,779
$
46,113,248
$
41,041,665
Shares
outstanding
..................................................................
4,980,000
4,987,788
4,980,000
Net
asset
value
.....................................................................
$
8.88
$
9.25
$
8.24
Shares
authorized
...................................................................
Unlimited
Unlimited
500
million
Par
value
.........................................................................
$
0.001
$
0.001
$
0.10
Statements
of
Operations
(unaudited)
Six
Months
Ended
March
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
52
See
notes
to
financial
statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
BlackRock
Sustainable
Total
Return
Fund
INVESTMENT
INCOME
–
–
–
Dividends
—
unaffiliated
.................................................................
$
731
$
—
$
—
Dividends
—
affiliated
...................................................................
23,391
24,286
41,204
Interest
—
unaffiliated
...................................................................
1,529,231
1,023,229
940,358
Total
investment
income
...................................................................
1,553,353
1,047,515
981,562
EXPENSES
Investment
advisory
....................................................................
108,911
71,555
80,084
Professional
.........................................................................
70,883
70,441
101,833
Accounting
services
....................................................................
43,351
24,833
42,274
Registration
.........................................................................
29,107
28,651
38,858
Printing
and
postage
...................................................................
25,471
27,346
31,168
Administration
.......................................................................
9,257
9,810
8,727
Custodian
...........................................................................
5,839
6,398
11,749
Administration
—
class
specific
............................................................
4,357
4,616
4,107
Directors
and
Officer
...................................................................
818
821
816
Service
and
distribution
—
class
specific
......................................................
124
136
165
Transfer
agent
—
class
specific
............................................................
111
405
143
Miscellaneous
........................................................................
5,580
9,830
21,834
Total
expenses
excluding
interest
expense
.......................................................
303,809
254,842
341,758
Interest
expense
......................................................................
—
13
301
Total
e
xpenses
.........................................................................
303,809
254,855
342,059
Less:
–
–
–
Administration
fees
waived
...............................................................
(
9,257
)
(
9,810
)
(
8,727
)
Administration
fees
waived
by
the
Manager
—
class
specific
.........................................
(
4,329
)
(
4,597
)
(
4,057
)
Fees
waived
and/or
reimbursed
by
the
Manager
.................................................
(
173,030
)
(
157,602
)
(
247,066
)
Transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific
............................
(
69
)
(
368
)
(
59
)
Total
ex
penses
after
fees
waived
and/or
reimbursed
................................................
117,124
82,478
82,150
Net
investment
income
....................................................................
1,436,229
965,037
899,412
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
2,182,673
$
698,394
$
1,564,795
Net
realized
gain
(loss)
from:
Investments
—
unaffiliated
.............................................................
$
(
690,723
)
$
(
304,236
)
$
(
650,935
)
Investments
—
affiliated
...............................................................
—
—
3,660
Forward
foreign
currency
exchange
contracts
.................................................
—
(
36,494
)
(
34,519
)
Foreign
currency
transactions
...........................................................
—
850
8,484
Futures
contracts
....................................................................
(
2,528
)
(
22,862
)
(
11,043
)
Options
written
.....................................................................
—
5,540
135,633
Swaps
..........................................................................
—
(
22,749
)
(
8,108
)
(693,251)
(379,951)
(556,828)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
unaffiliated
.............................................................
2,869,118
1,378,544
2,039,131
Forward
foreign
currency
exchange
contracts
.................................................
—
(
19,949
)
10,188
Foreign
currency
translations
............................................................
—
59
(
1,200
)
Futures
contracts
....................................................................
6,806
(
137,775
)
(
7,712
)
Options
written
.....................................................................
—
(
3,853
)
103,384
Swaps
..........................................................................
—
(
138,679
)
(
22,168
)
2,875,924
1,078,347
2,121,623
Net
realized
and
unrealized
gain
.............................................................
2,182,673
698,396
1,564,795
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
....................................
$
3,618,902
$
1,663,433
$
2,464,207
Statements
of
Changes
in
Net
Assets
53
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Sustainable
High
Yield
Bond
Fund
BlackRock
Sustainable
Low
Duration
Bond
Fund
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
............................................
$
1,436,229
$
2,417,720
$
965,037
$
1,621,253
Net
realized
loss
................................................
(
693,251
)
(
2,434,185
)
(
379,951
)
(
1,831,988
)
Net
change
in
unrealized
appreciation
(depreciation)
........................
2,875,924
3,804,030
1,078,347
1,754,115
Net
increase
in
net
assets
resulting
from
operations
...........................
3,618,902
3,787,565
1,663,433
1,543,380
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Institutional
...................................................
(
7,279
)
(
6,726
)
(
3,836
)
(
4,614
)
Investor
A
....................................................
(
3,057
)
(
5,049
)
(
2,018
)
(
5,191
)
Class
K
......................................................
(
1,402,589
)
(
2,511,492
)
(
920,502
)
(
2,302,577
)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.................
(1,412,925)
(2,523,267)
(926,356)
(2,312,382)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
(decrease)
in
net
assets
derived
from
capital
share
transactions
.........
(355)
148,952
131,175
51,755
NET
ASSETS
Total
increase
(decrease)
in
net
assets
...................................
2,205,622
1,413,250
868,252
(
717,247
)
Beginning
of
period
................................................
42,335,757
40,922,507
45,559,674
46,276,921
End
of
period
....................................................
$
44,541,379
$
42,335,757
$
46,427,926
$
45,559,674
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Statements
of
Changes
in
Net
Assets
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
54
See
notes
to
financial
statements.
BlackRock
Sustainable
Total
Return
Fund
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..............................................................................
$
899,412
$
1,526,865
Net
realized
loss
..................................................................................
(
556,828
)
(
2,947,064
)
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
2,121,623
2,026,803
Net
increase
in
net
assets
resulting
from
operations
.............................................................
2,464,207
606,604
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Institutional
.....................................................................................
(
9,293
)
(
4,251
)
Investor
A
......................................................................................
(
2,618
)
(
5,248
)
Class
K
........................................................................................
(
875,728
)
(
2,103,823
)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(887,639)
(2,113,322)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
...................................................
316,197
146,033
NET
ASSETS
Total
increase
(decrease)
in
net
assets
.....................................................................
1,892,765
(
1,360,685
)
Beginning
of
period
..................................................................................
39,796,053
41,156,738
End
of
period
......................................................................................
$
41,688,818
$
39,796,053
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
55
Financial
Highlights
BlackRock
Sustainable
High
Yield
Bond
Fund
Institutional
Six
Months
Ended
03/31/24
(unaudited)
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
.......................................
$
8.44
$
8.18
$
9.94
$
10.00
Net
investment
income
(b)
...............................................
0
.28
0
.49
0
.37
0
.05
Net
realized
and
unrealized
gain
(loss)
......................................
0
.44
0
.27
(
1
.72
)
(
0
.05
)
Net
increase
(decrease)
from
investment
operations
..............................
0.72
0.76
(1.35
)
0.00
Distributions
from
net
investment
income
(c)
..................................
(0.28
)
(0.50
)
(0.41
)
(0.06
)
Net
asset
value,
end
of
period
............................................
$
8.88
$
8.44
$
8.18
$
9.94
Total
Return
(d)
—
—
—
—
Based
on
net
asset
value
................................................
8.63
%
(e)
9.40
%
(13.97
)%
0.01
%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
.......................................................
1.41
%
(g)
1.56
%
1.75
%
1.32
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................
0.58
%
(g)
0.58
%
0.57
%
0.58
%
(g)
Net
investment
income
.................................................
6.55
%
(g)
5.70
%
3.96
%
2.80
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................
$
235
$
217
$
83
$
99
Portfolio
turnover
rate
...................................................
37
%
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)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
56
BlackRock
Sustainable
High
Yield
Bond
Fund
Investor
A
Six
Months
Ended
03/31/24
(unaudited)
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
........................................
$
8.44
$
8.18
$
9.94
$
10.00
Net
investment
income
(b)
................................................
0
.27
0
.46
0
.34
0
.05
Net
realized
and
unrealized
gain
(loss)
.......................................
0
.44
0
.28
(
1
.72
)
(
0
.05
)
Net
increase
(decrease)
from
investment
operations
...............................
0.71
0.74
(1.38
)
0.00
Distributions
from
net
investment
income
(c)
...................................
(0.27
)
(0.48
)
(0.38
)
(0.06
)
Net
asset
value,
end
of
period
.............................................
$
8.88
$
8.44
$
8.18
$
9.94
Total
Return
(d)
—
—
—
—
Based
on
net
asset
value
.................................................
8.50
%
(e)
9.13
%
(14.18
)%
(0.03
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
........................................................
1.72
%
(g)
1.83
%
2.00
%
1.58
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
...............................
0.84
%
(g)
0.83
%
0.82
%
0.83
%
(g)
Net
investment
income
..................................................
6.29
%
(g)
5.39
%
3.71
%
2.55
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
.............................................
$
100
$
101
$
84
$
99
Portfolio
turnover
rate
....................................................
37
%
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)
57
Financial
Highlights
BlackRock
Sustainable
High
Yield
Bond
Fund
Class
K
Six
Months
Ended
03/31/24
(unaudited)
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
.......................................
$
8.44
$
8.18
$
9.94
$
10.00
Net
investment
income
(b)
...............................................
0
.29
0
.48
0
.37
0
.05
Net
realized
and
unrealized
gain
(loss)
......................................
0
.43
0
.28
(
1
.72
)
(
0
.05
)
Net
increase
(decrease)
from
investment
operations
..............................
0.72
0.76
(1.35
)
0.00
Distributions
from
net
investment
income
(c)
..................................
(0.28
)
(0.50
)
(0.41
)
(0.06
)
Net
asset
value,
end
of
period
............................................
$
8.88
$
8.44
$
8.18
$
9.94
Total
Return
(d)
—
—
—
—
Based
on
net
asset
value
................................................
8.66
%
(e)
9.44
%
(13.93
)%
0.02
%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
.......................................................
1.39
%
(g)
1.52
%
1.46
%
0.96
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................
0.54
%
(g)
0.53
%
0.53
%
0.53
%
(g)
Net
investment
income
.................................................
6.59
%
(g)
5.67
%
4.00
%
2.85
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................
$
44,207
$
42,017
$
40,755
$
49,509
Portfolio
turnover
rate
...................................................
37
%
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)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
58
(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
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
.......................................................
$
9.10
$
9.25
$
10.00
Net
investment
income
(b)
...............................................................
0
.19
0
.32
0
.11
Net
realized
and
unrealized
gain
(loss)
......................................................
0
.13
(
0
.01
)
(
0
.73
)
Net
increase
(decrease)
from
investment
operations
..............................................
0.32
0.31
(0.62
)
Distributions
from
net
investment
income
(c)
..................................................
(0.18
)
(0.46
)
(0.13
)
Net
asset
value,
end
of
period
............................................................
$
9.24
$
9.10
$
9.25
Total
Return
(d)
—
—
—
Based
on
net
asset
value
................................................................
3.57
%
(e)
3.40
%
(6.24
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
.......................................................................
1.09
%
(g)
1.14
%
1.31
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................
0.38
%
(g)
0.39
%
0.37
%
(g)
(h)
Net
investment
income
.................................................................
4.13
%
(g)
3.49
%
1.24
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................
$
205
$
140
$
93
Portfolio
turnover
rate
(i)
..................................................................
58
%
201
%
178
%
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..................................................................
49%
174%
167%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
59
Financial
Highlights
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
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
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
.......................................................
$
9.10
$
9.25
$
10.00
Net
investment
income
(b)
...............................................................
0
.18
0
.30
0
.10
Net
realized
and
unrealized
gain
(loss)
......................................................
0
.14
(
0
.01
)
(
0
.74
)
Net
increase
(decrease)
from
investment
operations
..............................................
0.32
0.29
(0.64
)
Distributions
from
net
investment
income
(c)
..................................................
(0.17
)
(0.44
)
(0.11
)
Net
asset
value,
end
of
period
............................................................
$
9.25
$
9.10
$
9.25
Total
Return
(d)
—
—
—
Based
on
net
asset
value
................................................................
3.55
%
(e)
3.14
%
(6.46
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
.......................................................................
1.97
%
(g)
2.72
%
1.48
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................
0.66
%
(g)
0.65
%
0.62
%
(g)
(h)
Net
investment
income
.................................................................
3.88
%
(g)
3.23
%
1.08
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................
$
109
$
107
$
110
Portfolio
turnover
rate
(i)
..................................................................
58
%
201
%
178
%
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..................................................................
49%
174%
167%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
60
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
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
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
.......................................................
$
9.10
$
9.25
$
10.00
Net
investment
income
(b)
...............................................................
0
.19
0
.32
0
.12
Net
realized
and
unrealized
gain
(loss)
......................................................
0
.14
(
0
.01
)
(
0
.74
)
Net
increase
(decrease)
from
investment
operations
..............................................
0.33
0.31
(0.62
)
Distributions
from
net
investment
income
(c)
..................................................
(0.18
)
(0.46
)
(0.13
)
Net
asset
value,
end
of
period
............................................................
$
9.25
$
9.10
$
9.25
Total
Return
(d)
—
—
—
Based
on
net
asset
value
................................................................
3.70
%
(e)
3.44
%
(6.20
)%
(e)
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
.......................................................................
1.10
%
(g)
1.09
%
1.04
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................
0.36
%
(g)
0.35
%
0.33
%
(g)
(h)
Net
investment
income
.................................................................
4.18
%
(g)
3.53
%
1.28
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
............................................................
$
46,113
$
45,312
$
46,074
Portfolio
turnover
rate
(i)
..................................................................
58
%
201
%
178
%
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..................................................................
49%
174%
167%
See
notes
to
financial
statements.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
61
Financial
Highlights
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
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
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
......................................................
$
7.93
$
8.23
$
10.00
Net
investment
income
(b)
..............................................................
0
.18
0
.30
0
.16
Net
realized
and
unrealized
gain
(loss)
.....................................................
0
.30
(
0
.18
)
(
1
.76
)
Net
increase
(decrease)
from
investment
operations
.............................................
0.48
0.12
(1.60
)
Distributions
from
net
investment
income
(c)
.................................................
(0.17
)
(0.42
)
(0.17
)
Net
asset
value,
end
of
period
...........................................................
$
8.24
$
7.93
$
8.23
Total
Return
(d)
—
—
—
Based
on
net
asset
value
...............................................................
6.15
%
(e)
1.33
%
(16.16
)%
(e)
(f)
Ratios
to
Average
Net
Assets
(g)
Total
expen
ses
......................................................................
1.62
%
(h)
1.80
%
1.58
%
(h)
(i)
Total
expenses
after
fees
waived
and/or
reimbursed
.............................................
0.42
%
(h)
0.43
%
0.40
%
(h)
(i)
Net
investment
income
................................................................
4.29
%
(h)
3.64
%
1.80
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
...........................................................
$
513
$
182
$
82
Portfolio
turnover
rate
(j)
.................................................................
443
%
704
%
604
%
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..................................................................
271%
434%
360%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
62
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
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
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
......................................................
$
7.93
$
8.23
$
10.00
Net
investment
income
(b)
..............................................................
0
.16
0
.28
0
.13
Net
realized
and
unrealized
gain
(loss)
.....................................................
0
.31
(
0
.18
)
(
1
.76
)
Net
increase
(decrease)
from
investment
operations
.............................................
0.47
0.10
(1.63
)
Distributions
from
net
investment
income
(c)
.................................................
(0.16
)
(0.40
)
(0.14
)
Net
asset
value,
end
of
period
...........................................................
$
8.24
$
7.93
$
8.23
Total
Return
(d)
—
—
—
Based
on
net
asset
value
...............................................................
5.98
%
(e)
1.06
%
(16.38
)%
(e)
(f)
Ratios
to
Average
Net
Assets
(g)
Total
expen
ses
......................................................................
2.04
%
(h)
2.05
%
1.81
%
(h)
(i)
Total
expenses
after
fees
waived
and/or
reimbursed
.............................................
0.76
%
(h)
0.71
%
0.70
%
(h)
(i)
Net
investment
income
................................................................
4.02
%
(h)
3.42
%
1.53
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
...........................................................
$
134
$
128
$
92
Portfolio
turnover
rate
(j)
.................................................................
443
%
704
%
604
%
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..................................................................
271%
434%
360%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
63
Financial
Highlights
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
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
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
(a)
to
09/30/22
Net
asset
value,
beginning
of
period
......................................................
$
7.93
$
8.23
$
10.00
Net
investment
income
(b)
..............................................................
0
.18
0
.31
0
.16
Net
realized
and
unrealized
gain
(loss)
.....................................................
0
.31
(
0
.19
)
(
1
.76
)
Net
increase
(decrease)
from
investment
operations
.............................................
0.49
0.12
(1.60
)
Distributions
from
net
investment
income
(c)
.................................................
(0.18
)
(0.42
)
(0.17
)
Net
asset
value,
end
of
period
...........................................................
$
8.24
$
7.93
$
8.23
Total
Return
(d)
—
—
—
Based
on
net
asset
value
...............................................................
6.17
%
(e)
1.37
%
(16.12
)%
(e)
(f)
Ratios
to
Average
Net
Assets
(g)
Total
expen
ses
......................................................................
1.67
%
(h)
1.68
%
1.30
%
(h)
(i)
Total
expenses
after
fees
waived
and/or
reimbursed
.............................................
0.40
%
(h)
0.39
%
0.36
%
(h)
(i)
Net
investment
income
................................................................
4.38
%
(h)
3.68
%
1.84
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
...........................................................
$
41,042
$
39,486
$
40,982
Portfolio
turnover
rate
(j)
.................................................................
443
%
704
%
604
%
Six
Months
Ended
03/31/24
(unaudited)
Year
Ended
09/30/23
Period
from
10/18/21
to
09/30/22
Portfolio
turnover
rate
(excluding
MDRs)
..................................................................
271%
434%
360%
See
notes
to
financial
statements.
Notes
to
Financial
Statements
(unaudited)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
64
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.
Dividends
from
foreign
securities
where
the
ex-dividend
dates
may
have
passed
are
subsequently
recorded
when
the
Funds
are
informed
of
the
ex-dividend
dates.
Under
the
applicable
foreign
tax
laws,
a
withholding
tax
at
various
rates
may
be
imposed
on
capital
gains,
dividends
and
interest.
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.
Bank
Overdraft:
Certain
Funds
had
outstanding
cash
disbursements
exceeding
deposited
cash
amounts
at
the
custodian
during
the
reporting
period.
The
Funds
are
obligated
to
repay
the
custodian
for
any
overdraft,
including
any
related
costs
or
expenses,
where
applicable.
For
financial
reporting
purposes,
overdraft
fees,
if
any,
are
included
in
interest
expense
in
the
Statements
of
Operations.
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.
Registrant
Name
Fund
Name
Herein
Referred
To
As
Diversification
Classification
BlackRock
Funds
V
.....................
BlackRock
Sustainable
High
Yield
Bond
Fund
Sustainable
High
Yield
Bond
Diversified
BlackRock
Funds
V
.....................
BlackRock
Sustainable
Low
Duration
Bond
Fund
Sustainable
Low
Duration
Bond
Diversified
BlackRock
Bond
Fund,
Inc.
................
BlackRock
Sustainable
Total
Return
Fund
Sustainable
Total
Return
Diversified
Share
Class
Initial
Sales
Charge
Contingent
Deferred
Sales
Charge
(“CDSC”)
Conversion
Privilege
Institutional
and
Class
K
Shares
.....................................
No
No
None
Investor
A
Shares
..............................................
Yes
No
(a)
None
Notes
to
Financial
Statements
(unaudited)
(continued)
65
Notes
to
Financial
Statements
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
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.
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.
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
66
If
events
(e.g.,
market
volatility,
company
announcement or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the
Valuation
Committee
in
accordance
with
the
Manager’s
policies
and
procedures
as
reflecting
fair
value
(“Fair
Valued
Investments”).
The
fair
valuation
approaches
that
may
be
used
by
the
Valuation
Committee include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the
Valuation
Committee
seeks
to
determine
the
price
that
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
involves
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
Standard
Inputs
Generally
Considered
By
The
Valuation
Committee
And
Third-Party
Pricing
Services
Market
approach
........................
(i)
recent
market
transactions,
including
subsequent
rounds
of
financing,
in
the
underlying
investment
or
comparable
issuers;
(ii) recapitalizations
and
other
transactions
across
the
capital
structure;
and
(iii)
market
multiples
of
comparable
issuers.
Income
approach
..........................
(i)
future
cash
flows
discounted
to
present
and
adjusted
as
appropriate
for
liquidity,
credit,
and/or
market
risks;
(ii) quoted
prices
for
similar
investments
or
assets
in
active
markets;
and
(iii)
other
risk
factors,
such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks,
recovery
rates,
liquidation
amounts
and/or
default
rates.
Cost
approach
............................
(i)
audited
or
unaudited
financial
statements,
investor
communications
and
financial
or
operational
metrics
issued
by
the
Private
Company;
(ii) changes
in
the
valuation
of
relevant
indices
or
publicly
traded
companies
comparable
to
the
Private
Company;
(iii)
relevant
news
and
other
public
sources;
and
(iv)
known
secondary
market
transactions
in
the
Private
Company’s
interests
and
merger
or
acquisition
activity
in
companies
comparable
to
the
Private
Company.
Notes
to
Financial
Statements
(unaudited)
(continued)
67
Notes
to
Financial
Statements
prepayments
as
borrowers,
particularly
mortgagors,
refinance
and
repay
their
loans.
An
increased
prepayment
rate
with
respect
to
an
asset-backed
security
will
have
the
effect
of
shortening
the
maturity
of
the
security.
In
addition,
a
fund
may
subsequently
have
to
reinvest
the
proceeds
at
lower
interest
rates.
If
a
fund
has
purchased
such
an
asset-backed
security
at
a
premium,
a
faster
than
anticipated
prepayment
rate
could
result
in
a
loss
of
principal
to
the
extent
of
the
premium
paid.
For
mortgage
pass-through
securities
(the
“Mortgage
Assets”)
there
are
a
number
of
important
differences
among
the
agencies
and
instrumentalities
of
the
U.S.
Government
that
issue
mortgage-related
securities
and
among
the
securities
that
they
issue.
For
example,
mortgage-related
securities
guaranteed
by
Ginnie
Mae
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
Ginnie
Mae
and
such
guarantee
is
backed
by
the
full
faith
and
credit
of
the
United
States.
However,
mortgage-related
securities
issued
by
Freddie
Mac
and
Fannie
Mae,
including
Freddie
Mac
and
Fannie
Mae
guaranteed
mortgage
pass-through
certificates,
which
are
solely
the
obligations
of
Freddie
Mac
and
Fannie
Mae,
are
not
backed
by
or
entitled
to
the
full
faith
and
credit
of
the
United
States,
but
are
supported
by
the
right
of
the
issuer
to
borrow
from
the
U.S.
Treasury.
Non-agency
mortgage-backed
securities
are
securities
issued
by
non-governmental
issuers
and
have
no
direct
or
indirect
government
guarantees
of
payment
and
are
subject
to
various
risks.
Non-agency
mortgage
loans
are
obligations
of
the
borrowers
thereunder
only
and
are
not
typically
insured
or
guaranteed
by
any
other
person
or
entity.
The
ability
of
a
borrower
to
repay
a
loan
is
dependent
upon
the
income
or
assets
of
the
borrower.
A
number
of
factors,
including
a
general
economic
downturn,
acts
of
God,
terrorism,
social
unrest
and
civil
disturbances,
may
impair
a
borrower’s
ability
to
repay
its
loans.
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
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
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
68
(“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
(unaudited)
(continued)
69
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. The
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
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
70
acceleration,
repudiation,
moratorium
or
restructuring).
As
a
buyer,
if
an
underlying
credit
event
occurs,
the
Funds
will
either
(i)
receive
from
the
seller
an
amount
equal
to
the
notional
amount
of
the
swap
and
deliver
the
referenced
security
or
underlying
securities
comprising
the
index,
or
(ii)
receive
a
net
settlement
of
cash
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
security
or
underlying
securities
comprising
the
index.
As
a
seller
(writer),
if
an
underlying
credit
event
occurs,
the
Funds
will
either
pay
the
buyer
an
amount
equal
to
the
notional
amount
of
the
swap
and
take
delivery
of
the
referenced
security
or
underlying
securities
comprising
the
index
or
pay
a
net
settlement
of
cash
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
security
or
underlying
securities
comprising
the
index.
Total
return
swaps
—
Total
return
swaps
are
entered
into
to
obtain
exposure
to
a
security
or
market
without
owning
such
security
or
investing
directly
in
such
market
or
to
exchange
the
risk/return
of
one
security
or
market
(e.g.,
fixed-income)
with
another
security
or
market
(e.g.,
equity
or
commodity
prices)
(equity
risk,
commodity
price
risk
and/or
interest
rate
risk).
Total
return
swaps
are
agreements
in
which
there
is
an
exchange
of
cash
flows
whereby
one
party
commits
to
make
payments
based
on
the
total
return
(distributions
plus
capital
gains/losses)
of
an
underlying
instrument,
or
basket
of
underlying
instruments,
in
exchange
for
fixed
or
floating
rate
interest
payments.
If
the
total
return
of
the
instrument(s)
or
index
underlying
the
transaction
exceeds
or
falls
short
of
the
offsetting
fixed
or
floating
interest
rate
obligation,
the
Funds
receive
payment
from
or
make
a
payment
to
the
counterparty.
Interest
rate
swaps
—
Interest
rate
swaps
are
entered
into
to
gain
or
reduce
exposure
to
interest
rates
or
to
manage
duration,
the
yield
curve
or
interest
rate
(interest
rate
risk).
Interest
rate
swaps
are
agreements
in
which
one
party
pays
a
stream
of
interest
payments,
either
fixed
or
floating,
in
exchange
for
another
party’s
stream
of
interest
payments,
either
fixed
or
floating,
on
the
same
notional
amount
for
a
specified
period
of
time.
In
more
complex
interest
rate
swaps,
the
notional
principal
amount
may
decline
(or
amortize)
over
time.
Forward
swaps
— 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
(unaudited)
(continued)
71
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 six
months
ended
March
31,
2024,
the
following
table
shows
the
class
specific
service
borne
directly
by
each
share
class
of
each
Fund:
Administration:
The
Corporation
and
the
Trust,
on
behalf
of the
applicable
Funds,
entered
into
an
Administration
Agreement
with
the
Manager,
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
to
provide
administrative
services.
For
these
services,
the
Manager
receives
an
administration
fee
computed
daily
and
payable
monthly,
based
on
a
percentage
of
the
average
daily
net
assets
of
each
Fund.
The
administration
fee,
which
is
shown
as
administration
in
the
Statements
of
Operations,
is
paid
at
the
annual
rates
below.
In
addition,
the
Manager
charges
each
of
the
share
classes
an
administration
fee,
which
is
shown
as
administration —
class
specific
in
the
Statements
of
Operations,
at
an
annual
rate
of
0.02% of
the
average
daily
net
assets
of
each
respective
class.
For
the
six
months
ended
March
31,
2024, the
following
table
shows
the
class
specific
administration
fees
borne
directly
by
each
share
class
of
each
Fund:
Transfer
Agent:
Pursuant
to
written
agreements,
certain
financial
intermediaries,
some
of
which
may
be
affiliates,
provide
the
Funds
with
sub-accounting,
recordkeeping,
sub-transfer
agency
and
other
administrative
services
with
respect
to
servicing
of
underlying
investor
accounts.
For
these
services,
these
entities
receive
an
asset-based
fee
or
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets.
For
the
six
months
ended March
31,
2024,
the
Funds
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
Investment
Advisory
Fees
Average
Daily
Net
Assets
Sustainable
High
Yield
Bond
Sustainable
Low
Duration
Bond
Sustainable
Total
Return
First
$1
billion
.............................................................................
0.500%
0.310%
0.390%
$1
billion
-
$3
billion
.........................................................................
0.470
0.290
0.370
$3
billion
-
$5
billion
.........................................................................
0.450
0.280
0.350
$5
billion
-
$10
billion
........................................................................
0.440
0.270
0.340
Greater
than
$10
billion
.......................................................................
0.430
0.260
0.330
Share
Class
Service
Fees
Investor
A
..............................................................................................................
0.25
%
Fund
Name
Investor
A
Sustainable
High
Yield
Bond
..................................................................................................
$
124
Sustainable
Low
Duration
Bond
................................................................................................
136
Sustainable
Total
Return
.....................................................................................................
165
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
$
10
$
4,324
$
4,357
Sustainable
Low
Duration
Bond
.................................................................
19
11
4,586
4,616
Sustainable
Total
Return
......................................................................
44
13
4,050
4,107
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
72
The
Manager
maintains
a
call
center
that
is
responsible
for
providing
certain
shareholder
services
to
the
Funds.
Shareholder
services
include
responding
to
inquiries
and
processing
purchases
and
sales
based
upon
instructions
from
shareholders.
For
the six
months
ended
March
31,
2024,
each
Fund
reimbursed
the
Manager
the
following
amounts
for
costs
incurred
in
running
the
call
center,
which
are
included
in
transfer
agent
—
class
specific
in
the
Statements
of
Operations:
For
the
six
months ended
March
31,
2024,
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,
2025.
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
period
ended
March
31,
2024,
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,
2025.
The
contractual
agreement
may
be
terminated
upon
90
days’
notice
by
a
majority
of
the
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
a
Fund.
These
amounts
are
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations. For
the
six
months
ended
March
31,
2024,
Sustainable
Total
Return
Fund
waived
$83
in
investment
advisory
fees
pursuant
to
these
arrangements.
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,
2025,
unless
approved
by
the
Board,
including
a
majority
of
Independent
Directors,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
a
Fund.
For
the six
months
ended
March
31,
2024,
the
amounts
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations
were
as
follows:
The
Funds
also
had
a
waiver
of
administration
fees,
which
are
included
in
Administration
fees
waived
by
the
Manager
in
the
Statements
of
Operations.
For
the six
months
ended
March
31,
2024,
the
amounts
waived
were
as
follows:
Fund
Name
Institutional
Investor
A
Class
K
Total
Sustainable
High
Yield
Bond
...................................................................
$
24
$
21
$
50
$
95
Sustainable
Low
Duration
Bond
.................................................................
8
17
61
86
Sustainable
Total
Return
......................................................................
8
28
39
75
Fund
Name
Institutional
Investor
A
Class
K
Total
Sustainable
High
Yield
Bond
...................................................................
$
24
$
37
$
50
$
111
Sustainable
Low
Duration
Bond
.................................................................
10
334
61
405
Sustainable
Total
Return
......................................................................
19
85
39
143
Fund
Name
Amounts
Waived
Sustainable
High
Yield
Bond
.............................................................................................
$
338
Sustainable
Low
Duration
Bond
...........................................................................................
354
Sustainable
Total
Return
................................................................................................
570
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
...................................................................................................
$
172,692
Sustainable
Low
Duration
Bond
.................................................................................................
157,248
Sustainable
Total
Return
......................................................................................................
246,413
Fund
Name
Administration
fees
waived
Sustainable
High
Yield
Bond
...................................................................................................
$
9,257
Sustainable
Low
Duration
Bond
.................................................................................................
9,810
Sustainable
Total
Return
......................................................................................................
8,727
Notes
to
Financial
Statements
(unaudited)
(continued)
73
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
six
months ended
March
31,
2024,
class
specific
expense
waivers
and/or
reimbursements were
as
follows:
With
respect
to
the
contractual
expense
limitation,
if
during
a
Fund’s
fiscal
year
the
operating
expenses
of
a
share
class,
that
at
any
time
during
the
prior
two
fiscal
years
received
a
waiver
and/or
reimbursement
from
the
Manager,
are
less
than
the
current
expense
limitation
for
that
share
class,
the
Manager
is
entitled
to
be
reimbursed
by
such
share
class
up
to
the
lesser
of:
(a)
the
amount
of
fees
waived
and/or
expenses
reimbursed
during
those
prior
two
fiscal
years
under
the
agreement
and
(b)
an
amount
not
to
exceed
either
the
current
expense
limitation
of
that
share
class
or
the
expense
limitation
of
the
share
class
in
effect
at
the
time
that
the
share
class
received
the
applicable
waiver
and/or
reimbursement,
provided
that:
(1)
each
Fund,
of
which
the
share
class
is
a
part,
has
more
than
$50
million
in
assets
for
the
fiscal
year,
and
(2)
the
Manager
or
an
affiliate
continues
to
serve
as
a
Fund’s
investment
adviser
or
administrator.
This
repayment
applies
only
to
the
contractual
expense
limitation
on
net
expenses
and
does
not
apply
to
the
contractual
investment
advisory
fee
waiver
described
above
or
any
voluntary
waivers
that
may
be
in
effect
from
time
to
time.
Effective
July
22,
2028,
the
repayment
arrangement
between
Sustainable
High
Yield
Bond
and
the
Manager
pursuant
to
which
such
Fund
may
be
required
to
repay
amounts
waived
and/or
reimbursed
under the
Fund’s
contractual
caps
on
net
expenses
will
be
terminated.
Effective
October
19,
2028,
the
repayment
arrangement
between
Sustainable
Low
Duration
Bond
and
Sustainable
Total
Return
and
the
Manager
pursuant
to
which
such
Fund
may
be
required
to
repay
amounts
waived
and/or
reimbursed
under
each
Fund's
contractual
caps
on
net
expenses
will
be
terminated.
As
of March
31,
2024,
the
fund
level
and
class
specific
waivers
and/or
reimbursements
subject
to
possible
future
recoupment
under
the
expense
limitation
agreement were
as
follows:
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
“Order”)
from
the
U.S.
Securities
and
Exchange
Commission
(“SEC”),
each
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
“Interfund
Lending
Program”),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by each
Fund’s
investment
policies
and
restrictions. Each
Fund
is
currently
permitted
to
borrow
and
lend
under
the
Interfund
Lending
Program.
A
lending
BlackRock
fund
may
lend
in
aggregate
up
to
15%
of
its
net
assets
but
may
not
lend
more
than
5%
of
its
net
assets
to
any
one
borrowing
fund
through
the
Interfund
Lending
Program.
A
borrowing
BlackRock
fund
may
not
borrow
through
the
Interfund
Lending
Program
or
from
any
other
source
more
than
33
1/3%
of
its
total
assets
(or
any
lower
threshold
provided
for
by
the fund’s
investment
restrictions).
If
a
borrowing
BlackRock
fund’s
total
outstanding
borrowings
exceed
10%
of
its
total
assets,
each
of
its
outstanding
interfund
loans
will
be
subject
to
collateralization
of
at
least
102%
of
the
outstanding
principal
value
of
the
loan.
All
interfund
loans
are
for
temporary
or
emergency
Fund
Name/Share
Class
Administration
Fees
Waived
by
the
Manager
-
Class
Specific
Transfer
Agent
Fees
Waived
and/or
Reimbursed
by
the
Manager
-
Class
Specific
Sustainable
High
Yield
Bond
Investor
A
.....................................................................................
$
5
$
19
Class
K
......................................................................................
4,324
50
$
4,329
$
69
Sustainable
Low
Duration
Bond
Investor
A
.....................................................................................
$
11
$
307
Class
K
......................................................................................
4,586
61
$
4,597
$
368
Sustainable
Total
Return
Investor
A
.....................................................................................
7
20
Class
K
......................................................................................
4,050
39
$
4,057
$
59
Expiring
September
30,
2024
2025
2026
Sustainable
High
Yield
Bond
.........................................................
Fund
Level
...................................................................
$
419,665
$
409,708
$
181,949
Institutional
...................................................................
246
43
—
Investor
A
....................................................................
246
41
24
Class
K
......................................................................
9,456
8,681
4,374
Sustainable
Low
Duration
Bond
Fund
Level
...................................................................
300,554
330,205
167,058
Institutional
...................................................................
229
10
—
Investor
A
....................................................................
221
1,487
31
8
Class
K
......................................................................
9,414
9,333
4,647
Sustainable
Total
Return
Fund
Level
...................................................................
381,248
523,479
255,140
Institutional
...................................................................
231
14
—
Investor
A
....................................................................
187
27
27
Class
K
......................................................................
9,014
8,451
4,089
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
74
purposes
and
the
interest
rate
to
be
charged
will
be
the
average
of
the
highest
current
overnight
repurchase
agreement
rate
available
to
a
lending
fund
and
the
bank
loan
rate,
as
calculated
according
to
a
formula
established
by
the
Board.
During the
period
ended
March
31,
2024,
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 six
months ended
March
31,
2024,
purchases
and
sales
of
investments,
including
paydowns,
mortgage
dollar
rolls
and
excluding
short-term
securities,
were
as
follows:
For
the six
months ended
March
31,
2024,
purchases
and
sales
related
to
mortgage
dollar
rolls
were
as
follows:
8.
INCOME
TAX
INFORMATION
It
is
each
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required.
Each Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
each
Fund’s
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
years
after
they
are
filed.
The
statutes
of
limitations
on
each
Fund’s
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction.
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Funds
as
of
March
31,
2024,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Funds’
financial
statements.
As
of
September
30,
2023, the
Funds
had
non-expiring
capital
loss
carryforwards
available
to
offset
future
realized
capital
gains
and
qualified
late-year
losses as
follows:
As
of
March
31,
2024, 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 six
months ended
March
31,
2024,
the
Funds
did
not
borrow
under
the
credit
agreement.
U.S.
Government
Securities
Other
Securities
Fund
Name
Purchases
Sales
Purchases
Sales
Sustainable
High
Yield
Bond
..............................................
$
—
$
—
$
15,915,670
$
16,372,215
Sustainable
Low
Duration
Bond
............................................
6,309,825
4,379,114
19,335,770
22,995,597
Sustainable
Total
Return
.................................................
17,324,311
17,765,874
176,528,154
177,398,774
Fund
Name
Purchases
Sales
Sustainable
Low
Duration
Bond
............................................................................
$
4,168,275
$
4,166,773
Sustainable
Total
Return
.................................................................................
75,125,255
75,113,060
Fund
Name
Non-Expiring
Capital
Loss
Carryforwards
Qualified
Late-Year
Ordinary
Losses
Total
Sustainable
High
Yield
Bond
..............................................................
$
(4,188,151)
$
—
$
(4,188,151)
Sustainable
Low
Duration
Bond
............................................................
(1,735,629)
(390,499)
(
2,126,128
)
Sustainable
Total
Return
.................................................................
(5,592,301)
(307,362)
(
5,899,663
)
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
Sustainable
High
Yield
Bond
..........................................
$
46,240,078
$
647,313
$
(1,242,348)
$
(595,035)
Sustainable
Low
Duration
Bond
........................................
48,030,021
175,600
(1,289,846)
(1,114,246)
Sustainable
Total
Return
............................................
56,036,385
312,909
(2,576,932)
(2,264,023)
Notes
to
Financial
Statements
(unaudited)
(continued)
75
Notes
to
Financial
Statements
10.
PRINCIPAL
RISKS
In
the
normal
course
of
business, the
Funds
invest
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
each
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Funds
and their
investments.
Each
Fund’s
prospectus
provides
details
of
the
risks
to
which
each
Fund
is
subject.
Market
Risk
:
Each
Fund
may
be
exposed
to
prepayment
risk,
which
is
the
risk
that
borrowers
may
exercise
their
option
to
prepay
principal
earlier
than
scheduled
during
periods
of
declining
interest
rates,
which
would
force
each
Fund
to
reinvest
in
lower
yielding
securities. Each
Fund
may
also
be
exposed
to
reinvestment
risk,
which
is
the
risk
that
income
from
each
Fund’s
portfolio
will
decline
if
each
Fund
invests
the
proceeds
from
matured,
traded
or
called
fixed-income
securities
at
market
interest
rates
that
are
below
each
Fund
portfolio’s
current
earnings
rate.
Municipal
securities
are
subject
to
the
risk
that
litigation,
legislation
or
other
political
events,
local
business
or
economic
conditions,
credit
rating
downgrades,
or
the
bankruptcy
of
the
issuer
could
have
a
significant
effect
on
an
issuer’s
ability
to
make
payments
of
principal
and/or
interest
or
otherwise
affect
the
value
of
such
securities.
Municipal
securities
can
be
significantly
affected
by
political
or
economic
changes,
including
changes
made
in
the
law
after
issuance
of
the
securities,
as
well
as
uncertainties
in
the
municipal
market
related
to,
taxation,
legislative
changes
or
the
rights
of
municipal
security
holders,
including
in
connection
with
an
issuer
insolvency.
Municipal
securities
backed
by
current
or
anticipated
revenues
from
a
specific
project
or
specific
assets
can
be
negatively
affected
by
the
discontinuance
of
the
tax
benefits
supporting
the
project
or
assets
or
the
inability
to
collect
revenues
for
the
project
or
from
the
assets.
Municipal
securities
may
be
less
liquid
than
taxable
bonds,
and
there
may
be
less
publicly
available
information
on
the
financial
condition
of
municipal
security
issuers
than
for
issuers
of
other
securities.
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
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
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
76
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
raised
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.
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
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
Six
Months
Ended
03/31/24
Year
Ended
09/30/23
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
Sustainable
High
Yield
Bond
Institutional
Shares
sold
..........................................
183
$
1,624
15,390
$
132,950
Shares
issued
in
reinvestment
of
distributions
.....................
514
4,480
201
1,720
697
$
6,104
15,591
$
134,670
Investor
A
Shares
sold
..........................................
610
$
5,400
1,631
$
14,027
Shares
issued
in
reinvestment
of
distributions
.....................
40
348
30
255
Shares
redeemed
......................................
(1,381)
(12,207)
—
—
(731)
$
(6,459)
1,661
$
14,282
(34)
$
(355)
17,252
$
148,952
Sustainable
Low
Duration
Bond
Institutional
Shares
sold
..........................................
9,004
$
82,672
5,438
$
49,487
Shares
issued
in
reinvestment
of
distributions
.....................
217
2,004
3
26
Shares
redeemed
......................................
(2,437)
(22,517)
—
—
6,784
$
62,159
5,441
$
49,513
Investor
A
Shares
sold
..........................................
—
$
—
30
$
271
Shares
issued
in
reinvestment
of
distributions
.....................
33
307
91
835
Shares
redeemed
......................................
(30)
(274)
(212)
(1,927)
3
$
33
(91)
$
(821)
Notes
to
Financial
Statements
(unaudited)
(continued)
77
Notes
to
Financial
Statements
As
of
March
31,
2024,
shares
owned
by
BlackRock
Financial
Management,
Inc.,
an
affiliate
of
the
Funds,
were
as
follows:
12.
SUBSEQUENT
EVENTS
Management’s
evaluation
of
the
impact
of
all
subsequent
events
on
the
Funds’
financial
statements
was
completed
through
the
date
the
financial
statements
were
issued
and
the
following
item
was
noted:
Effective
April
11,
2024,
the
364-day
credit
agreement
to
which
the
Trust,
on
behalf
of
the
Funds,
and
the
Participating
Funds
are
party,
was
amended
to
(i)
decrease
the
aggregate
commitment
amount
to
$2.40
billion,
and
(ii)
extend
the
termination
date
to
April
2025.
d
Six
Months
Ended
03/31/24
Year
Ended
09/30/23
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
Class
K
Shares
sold
..........................................
7,505
$
69,471
329
$
3,000
Shares
issued
in
reinvestment
of
distributions
.....................
64
595
7
63
Shares
redeemed
......................................
(117)
(1,083)
—
—
7,452
$
68,983
336
$
3,063
14,239
$
131,175
5,686
$
51,755
Sustainable
Total
Return
Institutional
Shares
sold
..........................................
41,494
$
332,939
12,913
$
103,566
Shares
issued
in
reinvestment
of
distributions
.....................
919
7,547
8
60
Shares
redeemed
......................................
(3,109)
(25,007)
—
—
39,304
$
315,479
12,921
$
103,626
Investor
A
Shares
sold
..........................................
—
$
—
5,978
$
50,290
Shares
issued
in
reinvestment
of
distributions
.....................
124
1,004
151
1,251
Shares
redeemed
......................................
(37)
(286)
(1,118)
(9,134)
87
$
718
5,011
$
42,407
39,391
$
316,197
17,932
$
146,033
Institutional
Investor
A
Class
K
Sustainable
High
Yield
Bond
..........................................................................
10,000
10,000
4,980,000
Sustainable
Low
Duration
Bond
........................................................................
10,000
10,000
4,980,000
Sustainable
Total
Return
.............................................................................
10,000
10,000
4,980,000
Statement
Regarding
Liquidity
Risk
Management
Program
2024
BlackRock
Semi-Annual
Report
to
Shareholders
78
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Liquidity
Rule”),
BlackRock
Funds
V
(the
“Trust”)
and
BlackRock
Bond
Fund,
Inc.
(the
“Corporation”)
have
adopted
and
implemented
a
liquidity
risk
management
program
(the
“Program”)
for
the
BlackRock
Sustainable
High
Yield
Bond
Fund,
BlackRock
Sustainable
Low
Duration
Bond
Fund
and
BlackRock
Sustainable
Total
Return
Fund
(the
“Funds”),
each
a
series
of
the
Trust
or
the
Corporation,
which
is
reasonably
designed
to
assess
and
manage
each
Fund’s
liquidity
risk.
The
Board
of
Directors/Trustees
(the
“Board”),
as
applicable,
of
the
Trust
and
the
Corporation,
on
behalf
of
the
Funds
met
on
November
14-15,
2023
(the
“Meeting”)
to
review
the
Program.
The
Board
previously
appointed
BlackRock
Advisors,
LLC
("BlackRock"),
the
investment
adviser
to
each
Fund,
as
the
program
administrator
for
each
Fund’s
Program.
BlackRock
also
previously
delegated
oversight
of
the
Program
to
the
40
Act
Liquidity
Risk
Management
Committee
(the
“Committee”).
At
the
Meeting,
the
Committee,
on
behalf
of
BlackRock,
provided
the
Board
with
a
report
that
addressed
the
operation
of
the
Program
and
assessed
its
adequacy
and
effectiveness
of
implementation,
including
the
management
of
each
Fund’s
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
and
any
material
changes
to
the
Program
(the
“Report”).
The
Report
covered
the
period
from
October
1,
2022
through
September
30,
2023
(the
“Program
Reporting
Period”).
The
Report
described
the
Program’s
liquidity
classification
methodology
for
categorizing
each
Fund’s
investments
(including
derivative
transactions)
into
one
of
four
liquidity
buckets.
It
also
referenced
the
methodology
used
by
BlackRock
to
establish
each
Fund’s
HLIM
and
noted
that
the
Committee
reviews
and
ratifies
the
HLIM
assigned
to
each
Fund
no
less
frequently
than
annually.
The
Report
also
discussed
notable
events
affecting
liquidity
over
the
Program
Reporting
Period,
including
the
imposition
of
capital
controls
in
certain
countries.
The
Report
noted
that
the
Program
complied
with
the
key
factors
for
consideration
under
the
Liquidity
Rule
for
assessing,
managing
and
periodically
reviewing
each
Fund’s
liquidity
risk,
as
follows:
a)
The
Fund’s
investment
strategy
and
liquidity
of
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions
.
During
the
Program
Reporting
Period,
the
Committee
reviewed
whether
each
Fund’s
strategy
is
appropriate
for
an
open-end
fund
structure
with
a
focus
on
funds
with
more
significant
and
consistent
holdings
of
less
liquid
and
illiquid
assets.
The
Committee
also
factored
a
fund’s
concentration
in
an
issuer
into
the
liquidity
classification
methodology
by
taking
issuer
position
sizes
into
account.
Where
a
fund
participated
in
borrowings
for
investment
purposes
(such
as
tender
option
bonds
or
reverse
repurchase
agreements),
such
borrowings
were
factored
into
the
Program’s
calculation
of
a
fund’s
liquidity
bucketing.
A
fund’s
derivative
exposure
was
also
considered
in
such
calculation.
b)
Short-term
and
long-term
cash
flow
projections
during
both
normal
and
reasonably
foreseeable
stressed
conditions
.
During
Program
Reporting
Period,
the
Committee
reviewed
historical
redemption
activity
and
used
this
information
as
a
component
to
establish
each
Fund’s
reasonably
anticipated
trading
size
utilized
for
liquidity
classifications.
Each
Fund
has
adopted
an
in-kind
redemption
policy
which
may
be
utilized
to
meet
larger
redemption
requests.
The
Committee
may
also
take
into
consideration
a
fund’s
shareholder
ownership
concentration
(which,
depending
on
product
type
and
distribution
channel,
may
or
may
not
be
available),
a
fund’s
distribution
channels,
and
the
degree
of
certainty
associated
with
a
fund’s
short-term
and
long-term
cash
flow
projections.
c)
Holdings
of
cash
and
cash
equivalents,
as
well
as
borrowing
arrangements
.
The
Committee
considered
the
terms
of
the
credit
facility
committed
to
each
Fund,
the
financial
health
of
the
institution
providing
the
facility
and
the
fact
that
the
credit
facility
is
shared
among
multiple
funds
(including
that
a
portion
of
the
aggregate
commitment
amount
is
specifically
designated
for
BlackRock
Floating
Rate
Income
Portfolio,
a
series
of
BlackRock
Funds
V,
and
BlackRock
Floating
Rate
Loan
ETF,
a
series
of
BlackRock
ETF
Trust
II).
The
Committee
also
considered
other
types
of
borrowing
available
to
the
funds,
such
as
the
ability
to
use
reverse
repurchase
agreements
and
interfund
lending,
as
applicable.
There
were
no
material
changes
to
the
Program
during
the
Program
Reporting
Period
other
than
the
enhancement
of
certain
model
components
in
the
Program’s
classification
methodology.
The
Report
provided
to
the
Board
stated
that
the
Committee
concluded
that
based
on
the
operation
of
the
functions,
as
described
in
the
Report,
the
Program
is
operating
as
intended
and
is
effective
in
implementing
the
requirements
of
the
Liquidity
Rule.
Additional
Information
79
Additional
Information
Proxy
Results
BlackRock
Funds
V
A
Special
Meeting
of
Shareholders
was
held
on
November
9,
2023
for
shareholders
of
record
on
September
11,
2023,
to
elect
Trustees
to
the
Trust's
Board.
Shareholders
elected
the
Trustees*
as
follows:
*
Denotes
Trust-wide
proposal
and
voting
results.
Board
Members
whose
term
of
office
continued
after
the
Special
Meeting
of
Shareholders
because
they
were
not
up
for
election
are
R.
Glenn
Hubbard,
W.
Carl
Kester,
Cynthia
L.
Egan,
Frank
J.
Fabozzi,
Catherine
A.
Lynch,
Robert
Fairbairn
and
John
M.
Perlowski.
Frank
J.
Fabozzi's
term
as
a
Board
Member
of
the
Funds
ended
on
December
31,
2023.
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.
Votes
For
Votes
Withheld
Lorenzo
A.
Flores
6,098,355,552
50,013,664
Stayce
D.
Harris
6,100,362,778
48,006,437
J.
Phillip
Holloman
6,094,339,498
54,029,718
Arthur
P.
Steinmetz
6,096,630,633
51,738,582
Additional
Information
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
80
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.
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
DE
19809
(a)
For
BlackRock
Sustainable
Low
Duration
Bond
Fund
and
BlackRock
Sustainable
Total
Return
Fund.
Glossary
of
Terms
Used
in
this
Report
81
Glossary
of
Terms
Used
in
this
Report
Currency
Abbreviation
CAD
Canadian
Dollar
CNH
Chinese
Yuan
Offshore
EUR
Euro
JPY
Japanese
Yen
MXN
Mexican
Peso
USD
United
States
Dollar
Portfolio
Abbreviation
CLO
Collateralized
Loan
Obligation
CSMC
Credit
Suisse
Mortgage
Capital
DAC
Designated
Activity
Company
EURIBOR
Euro
Interbank
Offered
Rate
GO
General
Obligation
Bonds
LIBOR
London
Interbank
Offered
Rate
OTC
Over-the-counter
PIK
Payment-In-Kind
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-03/24-SAR
Item 2 – Code of Ethics – Not Applicable to this semi-annual report
Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 – Audit Committee of Listed Registrant – Not Applicable
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 – Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures.
Item 11 – Controls and Procedures
(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 –
Disclosure of Securities Lending Activities for Closed-End Management Investment
Companies
– Not Applicable
Item 13 – Recovery of Erroneously Awarded Compensation – Not Applicable
Item 14 – Exhibits attached hereto
(a)(1) Code of Ethics – Not Applicable to this semi-annual report
(a)(2) Section 302 Certifications are attached
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 –
Not Applicable
(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: May 22, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Bond Fund, Inc.
Date: May 22, 2024
By: /s/ Trent Walker
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Bond Fund, Inc.
Date: May 22, 2024