Blackrock Bond Fund N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-02857

Name of Fund: BlackRock Bond Fund, Inc.

BlackRock Sustainable Total Return Fund

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 09/30/2024

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

the

Program

Reporting

Period,

the

Committee

reviewed

historical

redemption

activity

and

used

this

information

as

a

component

to

establish

each

Fund’s

reasonably

anticipated

trading

size

utilized

for

liquidity

classifications.

Each

Fund

has

adopted

an

in-kind

redemption

policy

which

may

be

utilized

to

meet

larger

redemption

requests.

The

Committee

may

also

take

into

consideration

a

fund’s

shareholder

ownership

concentration

(which,

depending

on

product

type

and

distribution

channel,

may

or

may

not

be

available),

a

fund’s

distribution

channels,

and

the

degree

of

certainty

associated

with

a

fund’s

short-term

and

long-term

cash

flow

projections.

c)

Holdings

of

cash

and

cash

equivalents,

as

well

as

borrowing

arrangements

.

The

Committee

considered

the

terms

of

the

credit

facility

committed

to

each

Fund,

the

financial

health

of

the

institution

providing

the

facility

and

the

fact

that

the

credit

facility

is

shared

among

multiple

funds

(including

that

a

portion

of

the

aggregate

commitment

amount

is

specifically

designated

for

BlackRock

Floating

Rate

Income

Portfolio,

a

series

of

BlackRock

Funds

V,

and

BlackRock

Floating

Rate

Loan

ETF,

a

series

of

BlackRock

ETF

Trust

II).

The

Committee

also

considered

other

types

of

borrowing

available

to

the

funds,

such

as

the

ability

to

use

reverse

repurchase

agreements

and

interfund

lending,

as

applicable.

There

were

no

material

changes

to

the

Program

during

the

Program

Reporting

Period

other

than

the

enhancement

of

certain

model

components

in

the

Program’s

classification

methodology.

The

Report

provided

to

the

Board

stated

that

the

Committee

concluded

that

based

on

the

operation

of

the

functions,

as

described

in

the

Report,

the

Program

is

operating

as

intended

and

is

effective

in

implementing

the

requirements

of

the

Liquidity

Rule.

Additional

Information

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

Wilmington,

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

<<section302>>

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 –

Not Applicable

(a)(4) Change in Registrant’s independent public accountant –

Not Applicable

(b) Section 906 Certifications are attached

<<section906>>

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

BlackRock Bond Fund, Inc.

By:     /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Bond Fund, Inc.

Date: May 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