BlackRock 20/80 Target Allocation Fund, Investor A (BACPX) 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: 811-05742

Name of Fund: BlackRock Funds

BlackRock Emerging Markets Long/Short Equity Fund

BlackRock Global Long/Short Equity Fund

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 07/31/2015

Date of reporting period: 01/31/2015

Item 1 – Report to Stockholders

JANUARY 31, 2015

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Funds^SM

> BlackRock Emerging Markets Long/Short Equity Fund

> BlackRock Global Long/Short Equity Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

Page
The Markets in Review	3
Semi-Annual Report:
Fund Summaries	4
About Fund Performance	8
Disclosure of Expenses	8
Derivative Financial Instruments	9
Portfolio Information	9
Financial Statements:
Schedules of Investments	10
Statements of Assets and Liabilities	45
Statements of Operations	46
Statements of Changes in Net Assets	47
Financial Highlights	48
Notes to Financial Statements	54
Officers and Trustees	66
Additional Information	67

    

2 BLACKROCK FUNDS JANUARY 31, 2015

The Markets in Review

Dear Shareholder,

Market volatility, while remaining below the long-term average level, increased over the course of 2014 and into 2015, driven largely by higher valuations in risk assets (such as equities and high yield bonds), escalating geopolitical risks, uneven global economic growth and expectations around policy moves from the world’s largest central banks. Surprisingly, U.S. interest rates trended lower through the period even as the U.S. Federal Reserve (the “Fed”) gradually reduced its bond buying program, which ultimately ended in October.

The first half of 2014 was generally a strong period for most asset classes; however, volatility ticked up in the summer as geopolitical tensions intensified in Ukraine and the Middle East and investors feared that better U.S. economic indicators may compel the Fed to increase short-term interest rates sooner than previously anticipated. Global credit markets tightened as the U.S. dollar strengthened versus other currencies, ultimately putting a strain on investor flows, and financial markets broadly weakened in the third quarter.

Several themes dominated the markets in the fourth quarter that resulted in the strong performance of U.S. markets versus other areas of the world. Economic growth strengthened considerably in the United States while the broader global economy showed signs of slowing. The European Central Bank and the Bank of Japan took aggressive measures to stimulate growth while the Fed moved toward tighter policy, causing further strengthening in the U.S. dollar. Fixed income investors piled into U.S. Treasuries where yields, although persistently low, were comparatively higher than yields on international sovereign debt, while equity investors favored the relative stability of U.S.-based companies amid rising global risks.

Oil prices, which had been gradually declining since mid-summer, suddenly plummeted in the fourth quarter due to a global supply-and-demand imbalance. Energy stocks sold off sharply and oil-exporting economies struggled, mainly within emerging markets. Conversely, the consumer sectors benefited from lower oil prices as savings at the gas pumps freed up discretionary income for other goods and services.

These trends shifted at the beginning of 2015. U.S. equity markets starkly underperformed international markets due to stretched valuations and uncertainty around the Fed’s pending rate hike. In addition, the stronger U.S. dollar began to hurt earnings of large cap companies. The energy sector continued to struggle, although oil prices showed signs of stabilizing toward the end of January as suppliers became more disciplined in their exploration and production efforts.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

  

Rob Kapito
President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of January 31, 2015

	6-month			12-month
U.S. large cap equities (S&P 500® Index)		4.37	%		14.22	%
U.S. small cap equities (Russell 2000® Index)		4.72			4.41
International equities (MSCI Europe, Australasia, Far East Index)		(6.97	)		(0.43	)
Emerging market equities (MSCI Emerging Markets Index)		(9.05	)		5.23
3-month Treasury bill (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)		0.01			0.03
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)		9.29			12.25
U.S. investment grade bonds (Barclays U.S. Aggregate Bond Index)		4.36			6.61
Tax-exempt municipal bonds (S&P Municipal Bond Index)		4.51			8.81
U.S. high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		(0.89	)		2.41

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of January 31, 2015 BlackRock Emerging Markets Long/Short Equity Fund

Investment Objective

BlackRock Emerging Markets Long/Short Equity Fund’s (the “Fund”) investment objective is to seek total return over the long term.

Portfolio Management Commentary

How did the Fund perform?

• For the six-month period ended January 31, 2015, the Fund underperformed its benchmark, the BofA Merrill Lynch 3-month U.S. Treasury Bill Index.

What factors influenced performance?

• As part of its investment strategy, the Fund uses derivatives, including total return swaps, to achieve exposure to a market or to hedge market and/or equity risks. Through its use of total return swaps, the Fund’s performance is attributable to stock selection based on bottom-up security analysis coupled with a long-short approach to controlling the Fund’s exposure to trends in emerging markets. The Fund’s net long market position of approximately 20% in emerging markets was the largest detractor from relative return, as emerging market equities declined in the aggregate over the six months. (The net market position is the difference between the Fund’s total long positions and total short positions.) The Fund’s investments in both emerging and developed market companies that generated meaningful revenues via exposure to emerging markets outperformed the broader emerging markets; however, this positive selection was not sufficient to offset the negative impact from a long net market position.

• The Fund experienced positive contributions from positions designed to benefit from declining energy prices, as well as exposures based on the identification of improving country fundamentals in markets such as India, Taiwan and Thailand. The implementation of top-down macro driven

insights was also additive to performance. At the industry level, the Fund’s positioning was most effective with respect to the energy and semiconductor industries, and was least effective within the chemicals industry.

Describe recent portfolio activity.

• As commodity prices tumbled in the fourth quarter of 2014, the Fund began to overweight oil-importing countries and underweight exporters, on the view that structural factors should keep commodity prices range-bound for some period. After profiting from the country and industry positioning around oil in late 2014, the Fund began to trim these positions in January for risk control purposes.

• The Fund’s cash exposure had no material impact on performance as the Fund expresses long and short positions via the use of derivatives. The Fund was fully invested throughout the period.

Describe portfolio positioning at period end.

• The Fund had an approximately 20% net long market exposure in emerging markets at the end of the period. Reflecting the divergent paths for emerging market economies, the Fund continued to have well-balanced exposure to different groups of investment insights in both emerging market stocks and developed market stocks with exposure to emerging markets. Given the recent volatility in oil prices, the Fund had trimmed its exposure to energy.

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

4 BLACKROCK FUNDS JANUARY 31, 2015

BlackRock Emerging Markets Long/Short Equity Fund

Total Return Based on a $10,000 Investment

 

  

¹ Assuming maximum sales charges, if any, transaction costs and other operating expenses, including investment advisory fees. Institutional Shares do not have a sales charge.

² Under normal conditions, the Fund invests at least 80% of its total assets in global equity instruments and related derivative instruments issued by, or tied economically to, companies in emerging markets.

³ An unmanaged index that tracks 3-month U.S. Treasury securities.

⁴ Commencement of operations.

Performance Summary for the Period Ended January 31, 2015

			Average Annual Total Returns5
			1 Year				Since Inception6
	6-Month Total Returns		w/o sales charge		w/sales charge		w/o sales charge		w/sales charge
Institutional	(0.19	)%	0.19	%	N/A		1.28	%	N/A
Investor A	(0.29	)	0.00		(5.25	)%	1.06		(0.57	)%
Investor C	(0.59	)	(0.69	)	(1.69	)	0.28		0.28
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index	0.01		0.03		N/A		0.07		N/A

⁵ 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” on page 8 for a detailed description of share classes, including any related sales charges and fees.

⁶ The Fund commenced operations on October 6, 2011.

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical8
	Beginning Account Value August 1, 2014		Ending Account Value January 31, 2015		Expenses Paid During the Period7		Beginning Account Value August 1, 2014		Ending Account Value January 31, 2015		Expenses Paid During the Period7		Annualized Expense Ratio
Institutional	$	1,000.00	$	998.10	$	8.81	$	1,000.00	$	1,016.38	$	8.89		1.75	%
Investor A	$	1,000.00	$	997.10	$	10.07	$	1,000.00	$	1,015.12	$	10.16		2.00	%
Investor C	$	1,000.00	$	994.10	$	13.77	$	1,000.00	$	1,011.39	$	13.89		2.74	%

⁷ For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

⁸ Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 8 for further information on how expenses were calculated.

BLACKROCK FUNDS JANUARY 31, 2015 5

Fund Summary as of January 31, 2015 BlackRock Global Long/Short Equity Fund

Investment Objective

BlackRock Global Long/Short Equity Fund’s (the “Fund”) investment objective is to seek total return over the long term.

Portfolio Management Commentary

How did the Fund perform?

• For the six-month period ended January 31, 2015, the Fund outperformed its benchmark, the BofA Merrill Lynch 3-Month U.S. Treasury Bill Index.

What factors influenced performance?

• As part of its investment strategy, the Fund uses derivatives, including total return swaps, to achieve exposure to a market or to manage market and/or equity risks. Through its use of total return swaps, the Fund’s performance is attributable to stock selection based on bottom-up security analysis coupled with a long-short approach to controlling the Fund’s exposure to trends in global equity markets. The largest positive contribution to performance over the period came from macro/thematic strategies, particularly industry positioning. The Fund also benefited from stock selection in U.S. names. Country selection produced more mixed results. The Fund’s close to 0% net market position over the six months meant that the impact on performance from broader market moves was negligible. (The net market position is the difference between the Fund’s total long positions and total short positions.) At the industry level, the most significant contributor was a long position in the semiconductor industry. Semiconductor manufacturers continued to benefit from the increasingly broad usage of their products and their high exposure to the “internet of things” theme. Semiconductor manufacturers are part of the supply chain in areas as diverse as computer hardware, automobiles, telecommunication services and aerospace & defense.

• A long position in the energy equipment & servicing industry detracted from relative performance. These companies had been attractive and profitable investments for much of 2014 (prior to September), as they benefited from the building out of infrastructure in support of the shale oil fracking boom. Additionally, the industry tends to exhibit a low sensitivity to small movements in oil prices, which the Fund managed via long exposure to airlines, which typically perform well when oil prices drop. Nevertheless, the Fund’s holdings within energy equipment & servicing had a notable negative impact on performance given the dramatic decline in oil prices over the fourth quarter of 2014.

Describe recent portfolio activity.

• The most significant change in the Fund’s positioning over the six-month period was with respect to its relative net positions in the United States and Europe. The Fund entered the period with a net long position in U.S. stocks, where short positions in domestically focused firms were more than offset by long positions in export-focused firms which tend to benefit from a weaker domestic currency and lower cost of labor. However, the outlook for U.S. firms weakened based on a number of trends. These included the impact of a strengthening dollar on exports, signs of slowing momentum in economic numbers, expectations that tighter monetary policy would impede domestic demand, and signs of crowding of capital flows into the United States.

• By contrast, the Fund entered the period short European exporters due to weak trends in company fundamentals and headwinds from strong local currencies. However, European Central Bank actions leading to looser monetary policy than in the United States led to a slight weakening of the euro. In addition, there have been signs of domestic demand returning, and the lack of investor attention to the region is expected to reverse at some point. At period end the Fund had a long position in European stocks.

• The Fund’s cash exposure had no material impact on performance as the Fund expresses long and short positions via the use of derivatives that may require cash collateral. The Fund was fully invested throughout the period.

Describe portfolio positioning at period end.

• The Fund’s net market exposure was essentially neutral, or approximately 0%, at the end of the period. At the country level, the Fund held significant long positions in Spain and Germany as well as Canada, while being short U.K. and U.S. equities. At the industry level, the Fund was long real estate, utilities and energy, while being short consumer staples and retail.

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.

6 BLACKROCK FUNDS JANUARY 31, 2015

BlackRock Global Long/Short Equity Fund

Total Return Based on a $10,000 Investment

 

  

¹ Assuming maximum sales charges, if any, transaction costs and other operating expenses, including investment advisory fees. Institutional Shares do not have a sales charge.

² Under normal conditions, the Fund invests at least 80% of its total assets in equity instruments and related derivative instruments issued by, or tied economically to, companies located in developed markets.

³ An unmanaged index that tracks 3-month U.S. Treasury securities.

⁴ Commencement of operations.

Performance Summary for the Period Ended January 31, 2015

				Average Annual Total Returns5
				1 Year						Since Inception6
	6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		2.35	%		(0.23	)%		N/A			9.14	%		N/A
Investor A		2.19			(0.48	)		(5.71	)%		8.86			6.12	%
Investor C		1.77			(1.25	)		(2.23	)		8.05			8.05
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index		0.01			0.03			N/A			0.05			N/A

⁵ 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” on page 8 for a detailed description of share classes, including any related sales charges and fees.

⁶ The Fund commenced operations on December 20, 2012.

N/A — Not applicable as share class and index do not have a sales charge.

Past performance is not indicative of future results.

Expense Example

	Actual						Hypothetical8
	Beginning Account Value August 1, 2014		Ending Account Value January 31, 2015		Expenses Paid During the Period7		Beginning Account Value August 1, 2014		Ending Account Value January 31, 2015		Expenses Paid During the Period7		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,023.50	$	8.06	$	1,000.00	$	1,017.24	$	8.03		1.58	%
Investor A	$	1,000.00	$	1,021.90	$	9.58	$	1,000.00	$	1,015.73	$	9.55		1.88	%
Investor C	$	1,000.00	$	1,017.70	$	13.32	$	1,000.00	$	1,012.00	$	13.29		2.62	%

⁷ For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

⁸ Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 8 for further information on how expenses were calculated.

BLACKROCK FUNDS JANUARY 31, 2015 7

About Fund Performance

• Institutional 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 5.25% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

• Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than performance data quoted. Refer to www.blackrock.com/funds 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 each of the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend dates. 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”), the Funds’ investment advisor, waived and/or reimbursed a portion of each Fund’s expenses. Without such waiver and/or reimbursement, each Fund’s performance would have been lower. The Manager is under no obligation to waive or reimburse or to continue waiving or reimbursing its fees after the applicable termination date of such agreement. See Note 4 of the Notes to Financial Statements for additional information on waivers and reimbursements.

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, and other Fund expenses. The expense examples shown on the previous pages (which are based on a hypothetical investment of $1,000 invested on August 1, 2014 and held through January 31, 2015) 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. 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 each 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 other funds’ shareholder reports.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any 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.

8 BLACKROCK FUNDS JANUARY 31, 2015

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. Derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities 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. Derivative financial instruments also 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 derivative

financial instrument. The Funds’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial 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 are discussed in detail in the Notes to Financial Statements.

Portfolio Information as of January 31, 2015

BlackRock Emerging Markets Long/Short Equity Fund

	Percent of Total Investments1
Geographic Allocation	Long			Short			Total
China		11	%		8	%		19	%
South Korea		6			6			12
Taiwan		4			7			11
Hong Kong		3			7			10
United States		5			4			9
Brazil		3			5			8
South Africa		3			4			7
Thailand		2			1			3
Turkey		1			2			3
Mexico		2			1			3
Japan		1			1			2
Poland		—			2			2
Indonesia		1			1			2
United Kingdom		—			1			1
Malaysia		—			1			1
Philippines		—			1			1
Malta		1			—			1
Other2		2			3			5
Total		45	%		55	%		100	%

BlackRock Global Long/Short Equity Fund

	Percent of Total Investments1
Geographic Allocation	Long			Short			Total
United States		51	%		20	%		71	%
Japan		4			4			8
Canada		3			1			4
United Kingdom		1			3			4
Spain		2			—			2
Australia		1			1			2
Germany		2			—			2
Hong Kong		1			—			1
Other2		2			4			6
Total		67	%		33	%		100	%

¹ Total investments include the gross notional values of long and short equity securities of the underlying derivative contracts utilized by the Fund and exclude short-term securities.

² Includes holdings within countries representing 1% or less of long-term investments. Please refer to the Schedules of Investments for such countries.

BLACKROCK FUNDS JANUARY 31, 2015 9

Schedule of Investments January 31, 2015 (Unaudited) BlackRock Emerging Markets Long/Short Equity Fund
(Percentages shown are based on Net Assets)

Short-Term Securities	Shares		Value
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.07% (a)(b)		506,787,730	$	506,787,730
Total Short-Term Securities (Cost — $506,787,730*) — 100.5%				506,787,730
Liabilities in Excess of Other Assets — (0.5)%				(2,686,631	)
Net Assets — 100.0%			$	504,101,099

Notes to Schedule of Investments

*	Cost for federal income tax purposes.
(a)	During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at July 31, 2014		Net Activity			Shares Held at January 31, 2015		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		591,333,751		(84,546,021	)		506,787,730	$	143,783

(b)	Represents the current yield as of report date.
•	Total return swaps outstanding as of January 31, 2015 were as follows:1

Reference Entity	Counterparty	Expiration Dates	Notional Amount			Unrealized Appreciation			Net Value of Reference Entities
Equity Securities Long/Short:	Goldman Sachs & Co.	1/26/15 — 8/03/16	$	29,384,796		$	5,417,664	2	$	33,840,048
	Goldman Sachs & Co.	8/27/15 — 8/04/16	$	(854,968	)		842,245	3		(7,921	)
	Morgan Stanley & Co, Inc.	5/16/16 — 1/22/18	$	33,489,636			183,827	4		33,961,483
	Morgan Stanley & Co, Inc.	2/25/16	$	(467,619	)		439,064	5		(12,012	)
	UBS AG	3/19/15	$	29,779,219			3,187,350	6		32,720,669
	UBS AG	3/19/15	$	(1,086,406	)		843,622	7		(160,620	)
Total						$	10,913,772		$	100,341,647

¹ The Fund receives or pays the total return on a portfolio of long and short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark, plus or minus a spread in a range of 20-1200 basis points. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. The following are the specified benchmarks used in determining the variable rate of interest:

IntercontinentalExchange LIBOR:
   USD 1 Month; USD Spot Next
Federal Funds Effective Rate — One Day or Overnight

² Amount includes $962,412 of dividends and financing fees due to/from the Fund and/or the counterparty.

³ Amount includes $(4,802) of dividends and financing fees due to/from the Fund and/or the counterparty.

⁴ Amount includes $(288,020) of dividends and financing fees due to/from the Fund and/or the counterparty.

⁵ Amount includes $(16,543) of dividends and financing fees due to/from the Fund and/or the counterparty.

⁶ Amount includes $245,900 of dividends and financing fees due to/from the Fund and/or the counterparty.

⁷ Amount includes $(82,164) of dividends and financing fees due to/from the Fund and/or the counterparty.

See Notes to Financial Statements.

10 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments January 31, 2015 (Unaudited) BlackRock Emerging Markets Long/Short Equity Fund

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Goldman Sachs & Co. as of January 31, 2015, expiration dates 1/26/15 — 8/03/16:

	Shares		Value
Reference Entity — Long
Brazil
AES Tiete SA, Preference Shares		20,700	$	127,753
AMBEV SA, ADR		102,902		677,095
Banco do Brasil SA		19,800		152,452
BM&FBovespa SA		407,100		1,380,643
Bradespar SA, Preference Shares		485,500		2,100,682
Cia Brasileira de Distribuicao Grupo Pao de Acucar, Preference Shares		69,400		2,304,496
Cia Energetica de Minas Gerais — ADR		3,379		15,239
Cia Energetica de Minas Gerais, Preference Shares		103,400		458,956
Cia Energetica de Sao Paulo, Preference B Shares		116,400		1,022,038
Cia Paranaense de Energia — ADR		11,042		128,087
Cia Paranaense de Energia, Preference B Shares		55,200		641,849
Cyrela Brazil Realty SA		12,800		51,567
EDP — Energias do Brasil SA		326,100		1,052,465
Embraer SA		4,900		43,353
Embraer SA, ADR		22,222		783,548
Even Construtora e Incorporadora SA		518,400		836,550
Gerdau SA, Preference Shares		609,400		2,068,996
JBS SA		345,500		1,473,035
Light SA		10,500		55,410
Metalurgica Gerdau SA, Preference Shares		107,900		395,690
MRV Engenharia e Participacoes SA		56,400		145,243
Multiplus SA		163,000		2,110,966
Petroleo Brasileiro SA — ADR		79,460		488,679
Petroleo Brasileiro SA, Preference Shares		92,000		280,466
Tractebel Energia SA		23,400		271,565
Vale SA, Preference Shares — ADR		46,412		290,539
Vale SA, Preference A Shares		112,000		690,804
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao S.A		28,900		414,127
				20,462,293
China
Agricultural Bank of China Ltd., Class H		1,559,000		761,281
Anta Sports Products Ltd.		191,000		336,553
Bank of China Ltd., Class H		1,200,000		669,910
Beijing Capital International Airport Co. Ltd., Class H		888,000		843,727
Beijing Jingneng Clean Energy Co., Ltd., Class H		272,000		108,768
China Cinda Asset Management Co., Ltd.		3,717,000		1,758,135
China Communications Construction Corp. Ltd., Class H		1,598,000		1,736,041
China Communications Services Corp. Ltd., Class H		320,000		144,100
China Construction Bank Corp., Class H		1,517,000		1,214,329
China Everbright Bank Co., Ltd., Class H		398,000		212,115
China Mobile Ltd.		359,500		4,712,498
China Railway Group Ltd., Class H		555,000		405,119
China Shenhua Energy Co., Ltd., Class H		984,500		2,702,485
Country Garden Holdings Co. Ltd.		255,000		101,606
Datang International Power Generation Co. Ltd., Class H		4,636,000		2,534,689
Dongfeng Motor Group Co. Ltd., Class H		2,018,000		2,918,513
Greentown China Holdings Ltd.		1,059,000		926,179
Guangzhou Pharmaceutical Co., Ltd.		326,000		1,154,430
Guangzhou R&F Properties Co., Ltd., Class H		506,400		574,132
Industrial and Commercial Bank of China Ltd., Class H		2,468,000		1,759,997
Jiangsu Expressway Co., Ltd., Class H		1,336,000		1,658,216
Longfor Properties Co. Ltd.		130,500		171,443
Lonking Holdings Ltd.		2,050,000		387,784
Metallurgical Corp. of China, Ltd.		2,760,000		851,762

	Shares		Value
Reference Entity — Long
China (concluded)
Ping An Insurance Group Co. of China Ltd., Class H		91,000	$	964,503
Shanghai Industrial Holdings Ltd.		494,000		1,459,448
Shanghai Pharmaceuticals Holding Co., Ltd., Class H		316,300		684,923
Sino-Ocean Land Holdings Ltd.		825,000		527,556
Sinopharm Group Co., Class H		110,800		403,429
Zhejiang Expressway Co., Ltd., Class H		2,395,218		3,048,076
				35,731,747
Hong Kong
China Merchants Holdings International Co., Ltd.		238,000		874,615
China Mobile, Ltd., ADR		5,338		348,678
China Power International Development, Ltd.		9,257,000		5,255,774
China Resources Cement Holdings Ltd.		3,264,000		1,937,004
China Resources Land Ltd.		276,888		708,345
China Resources Power Holdings Co., Ltd.		42,000		117,599
China Travel International Inv HK		950,000		311,748
China Unicom Hong Kong Ltd.		242,000		362,225
China Unicom Hong Kong, Ltd., ADR		26,870		401,706
COSCO Pacific Ltd.		1,460,000		2,112,735
CSPC Pharmaceutical Group Ltd.		2,972,000		2,507,164
Franshion Properties China Ltd.		3,074,000		902,527
GOME Electrical Appliances Holding Ltd.		26,552,000		3,654,954
Guangdong Investment Ltd.		244,000		327,530
Kingboard Chemical Holdings Ltd.		244,500		395,435
KWG Property Holding Ltd.		2,286,500		1,460,290
Poly Property Group Co. Ltd.		236,000		108,414
REXLot Holdings, Ltd.		6,175,000		482,218
Shenzhen Investment Ltd.		2,062,000		595,116
Shimao Property Holdings Ltd.		1,267,000		2,659,434
Sino Biopharmaceutical Ltd.		1,536,000		1,534,450
Skyworth Digital Holdings Ltd.		184,000		103,765
Yuexiu Property Co., Ltd.		370,000		71,910
				27,233,636
Indonesia
Adaro Energy Tbk PT		2,166,500		170,235
Indo Tambangraya Megah Tbk PT		86,700		114,240
Matahari Putra Prima Tbk PT		9,648,900		2,894,480
Perusahaan Gas Negara Persero Tbk PT		2,401,300		953,954
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		467,600		67,682
Tambang Batubara Bukit Asam Persero Tbk PT		127,700		114,129
United Tractors Tbk PT		860,600		1,211,002
				5,525,722
Malaysia
British American Tobacco Malaysia Bhd		167,700		3,048,484
Tenaga Nasional Bhd		51,900		207,004
YTL Power International Bhd		86,400		38,061
				3,293,549
Mexico
Grupo Aeroportuario del Pacifico SAB de CV, Class B		415,904		2,749,664
Grupo Aeroportuario del Pacifico SAB de CV — ADR		21,914		1,455,308
Grupo Bimbo SAB de CV, Series A		588,934		1,498,512
Wal-Mart de Mexico SAB de CV, Series V		48,700		94,057
				5,797,541
Peru
Compania de Minas Buenaventura SA — ADR		4,920		56,186
Philippines
Globe Telecom, Inc.		16,005		631,742
Jollibee Foods Corp.		60,960		320,042
Universal Robina Corp.		160,490		752,952
				1,704,736

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 11

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares		Value
Reference Entity — Long
Poland
Enea SA		227,995	$	1,012,988
Grupa Lotos SA		59,150		390,314
KGHM Polska Miedz SA		25,653		727,252
PGE SA		341,060		1,787,087
Polski Koncern Naftowy Orlen SA		123,137		1,816,833
Polskie Gornictwo Naftowe i Gazownictwo SA		313,738		370,211
Tauron Polska Energia SA		168,088		226,140
				6,330,825
South Africa
AngloGold Ashanti Ltd.		10,418		126,359
Bidvest Group Ltd.		92,259		2,546,218
Clicks Group, Ltd.		131,911		1,023,117
Exxaro Resources Ltd.		39,918		353,692
FirstRand Ltd.		1,223,442		5,444,774
Gold Fields Ltd.		17,133		98,700
Gold Fields, Ltd., ADR		190,918		1,126,416
Liberty Holdings Ltd.		76,893		865,665
Mediclinic International, Ltd.		37,359		369,406
MTN Group Ltd.		49,493		854,680
Netcare Ltd.		1,784,715		5,924,962
Sanlam Ltd.		154,574		926,477
Sibanye Gold, Ltd.		459,730		1,243,061
				20,903,527
South Korea
AfreecaTV Co., Ltd.		2,797		72,520
Amorepacific Corp.		322		776,024
Cell Biotech Co., Ltd.		10,709		571,682
Doosan Infracore Co., Ltd.		94,925		878,881
Hanjin Kal Corp.		1		30
Hyundai Mobis		1,617		365,552
Hyundai Steel Co.		803		48,177
Kangwon Land, Inc.		47,459		1,399,533
Kia Motors Corp.		49,510		2,069,125
Korea Electric Power Corp.		1,600		62,558
Korea Investment Holdings Co., Ltd.		2,726		128,465
Korea Line Corp.		58,285		1,167,725
Korean Reinsurance Co.		7		65
KT Skylife Co., Ltd.		27,850		411,252
KT Submarine Co., Ltd.		18,442		85,580
LG Corp.		34,844		1,960,941
Lotte Confectionery Co., Ltd.		143		243,694
Lotte Food Co., Ltd.		504		285,026
LS Corp.		17,212		754,461
LS Industrial Systems Co., Ltd.		6,633		365,589
Mando Corp.		20,606		1,186,467
Medy-Tox, Inc.		1,337		449,247
Mirae Asset Securities Co., Ltd.		1,780		74,907
Poongsan Corp.		1,137		23,508
POSCO — ADR		1,671		97,302
SK Innovation Co., Ltd.		5,150		437,335
SK Networks Co., Ltd.		88,276		756,175
SK Telecom Co., Ltd.		246		64,468
SK Telecom Co., Ltd., ADR		104,968		3,017,830
SKC Co., Ltd.		13,407		368,177
Sungwoo Hitech Co., Ltd.		26,622		293,649
Tovis Co., Ltd.		7,042		126,644
				18,542,589
Taiwan
Advanced Semiconductor Engineering, Inc.		160,000		200,915
Advanced Semiconductor Engineering, Inc. — ADR		22,869		151,164
Asia Cement Corp.		422,000		508,771
Chicony Electronics Co., Ltd.		428,000		1,174,447
Chimei Innolux Corp.		4,858,000		2,340,405

	Shares			Value
Reference Entity — Long
Taiwan (concluded)
Chimei Materials Technology Corp.		2,360,355		$	2,383,640
China Steel Chemical Corp.		166,000			802,655
CTCI Corp.		193,000			304,976
Elan Microelectronics Corp.		336,000			525,432
Everlight Electronics Co., Ltd.		123,000			295,045
Far Eastern Department Stores Co., Ltd.		1,279,508			1,091,661
Foxconn Technology Co., Ltd.		353,000			955,799
King Yuan Electronics Co., Ltd.		3,907,000			3,263,926
Pegatron Corp.		403,000			1,071,609
President Chain Store Corp.		10,000			76,873
Sigurd Microelectronics Corp.		2,336,000			2,224,219
Siliconware Precision Industries Co.		1,450,000			2,445,035
Sitronix Technology Corp.		100,000			327,408
Soft-World International Corp.		72,000			228,119
Taiwan Cement Corp.		1,279,000			1,726,795
Taiwan Semiconductor Manufacturing Co., Ltd.		255,000			1,121,395
Unity Opto Technology Co., Ltd.		125,000			115,737
Win Semiconductors Corp.		139,000			146,016
Wistron Corp.		1,770,000			1,613,691
Yuanta Financial Holding Co., Ltd.		3,727,500			1,788,184
					26,883,917
Thailand
PTT PCL		251,700			2,660,807
Turkey
Enka Insaat ve Sanayi AS		897,342			1,812,903
KOC Holding AS		25,003			129,647
Koza Altin Isletmeleri AS		30,199			238,850
Pegasus Hava Tasimaciligi AS		24,784			307,030
Tofas Turk Otomobil Fabrikasi AS		113,768			757,336
Tupras Turkiye Petrol Rafinerileri AS		7,654			165,891
Turk Telekomunikasyon AS		183,885			550,155
					3,961,812
United Kingdom
Old Mutual PLC		88,659			277,896
Total Reference Entity — Long					179,366,783
Reference Entity — Short
Brazil
Aliansce Shopping Centers SA		(18,000	)		(108,003	)
Equatorial Energia SA		(71,101	)		(662,452	)
Gafisa SA		(174,000	)		(123,209	)
Marcopolo SA, Preferred Shares		(1,398,700	)		(1,397,006	)
Oi SA		(5,898	)		(10,969	)
Smiles SA		(240,600	)		(3,788,447	)
					(6,090,086	)
China
AAC Technologies Holdings, Inc.		(588,500	)		(3,760,933	)
Airtac International Group		(262,000	)		(2,274,790	)
AviChina Industry & Technology Co., Ltd.		(6,292,000	)		(4,065,483	)
China Coal Energy Co., Ltd.		(1,323,000	)		(728,839	)
China COSCO Holdings Co., Ltd., Class H		(429,000	)		(212,052	)
China Eastern Airlines Corp., Ltd., Class H, Class H		(370,000	)		(187,648	)
China Longyuan Power Group Corp., Class H		(29,000	)		(31,125	)
China Molybdenum Co., Ltd., Class H		(1,267,000	)		(801,617	)
China Shanshui Cement Group, Ltd.		(2,165,000	)		(950,772	)
China Shipping Container Lines Co., Ltd.		(457,000	)		(143,418	)
China Tian Lun Gas Holdings, Ltd.		(78,000	)		(82,001	)
CITIC Securities Co., Ltd., Class H		(488,000	)		(1,567,820	)
CNOOC, Ltd.		(211,000	)		(279,968	)
Dongfang Electric Corp., Ltd., Class H		(638,400	)		(1,400,146	)
ENN Energy Holdings Ltd.		(142,000	)		(839,399	)

See Notes to Financial Statements.

12 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
China (concluded)
First Tractor Co., Ltd., Class H, Class H		(350,000	)	$	(257,233	)
Great Wall Motor Co., Ltd.		(54,000	)		(308,226	)
Haitian International Holdings, Ltd.		(57,000	)		(110,511	)
Hengan International Group Co., Ltd.		(81,500	)		(967,414	)
Hilong Holding, Ltd.		(14,000	)		(4,322	)
Lenovo Group, Ltd.		(920,000	)		(1,184,587	)
PetroChina Co., Ltd.		(2,382,000	)		(2,586,617	)
Semiconductor Manufacturing International Corp.		(8,998,000	)		(779,935	)
Shanghai Electric Group Co., Ltd.		(1,242,000	)		(761,537	)
Shui On Land Ltd.		(5,799,000	)		(1,305,426	)
Sinopec Shanghai Petrochemical Co., Ltd., Class H		(1,276,000	)		(369,314	)
SOHO China, Ltd.		(1,380,500	)		(958,749	)
Sohu.com, Inc.		(2,199	)		(123,452	)
TCL Communication Technology Holdings, Ltd.		(798,000	)		(702,943	)
Tingyi Cayman Islands Holding Corp.		(634,000	)		(1,561,618	)
Uni-President China Holdings, Ltd.		(3,409,000	)		(2,946,261	)
Weichai Power Co., Ltd., Class H		(748,000	)		(2,959,170	)
Yanzhou Coal Mining Co., Ltd., Class H		(1,062,000	)		(844,547	)
					(36,057,873	)
Hong Kong
Brilliance China Automotive Holdings Ltd.		(2,314,000	)		(4,244,557	)
China Agri-Industries Holdings Ltd.		(268,000	)		(108,249	)
China Everbright International, Ltd.		(2,829,000	)		(4,173,977	)
China Gas Holdings, Ltd.		(130,000	)		(200,921	)
China Mengniu Dairy Co., Ltd.		(160,000	)		(729,049	)
China Oceanwide Holdings, Ltd.		(5,098,000	)		(548,363	)
China Resources Enterprise, Ltd.		(1,947,985	)		(4,264,854	)
Kunlun Energy Co., Ltd.		(166,000	)		(172,841	)
Lee & Man Paper Manufacturing, Ltd.		(67,000	)		(35,178	)
Towngas China Co., Ltd.		(78,000	)		(68,118	)
					(14,546,107	)
Indonesia
Charoen Pokphand Indonesia Tbk PT		(1,470,500	)		(456,731	)
Sawit Sumbermas Sarana Tbk PT		(2,547,500	)		(331,471	)
Siloam International Hospitals Tbk PT		(95,000	)		(100,493	)
Surya Citra Media Tbk PT		(2,749,400	)		(738,049	)
Tower Bersama Infrastructure Tbk PT		(317,500	)		(237,736	)
XL Axiata Tbk PT		(1,329,500	)		(502,035	)
					(2,366,515	)
Malaysia
Berjaya Sports Toto BHD		(79	)		(74	)
Mexico
Alsea SAB de C.V.		(327,400	)		(876,299	)
Cemex SAB de CV		(1,600,800	)		(1,421,438	)
Cemex SAB de CV — ADR		(108,196	)		(961,862	)
Empresas ICA SAB de CV		(608,937	)		(632,519	)
Fibra Uno Administracion SA de CV		(2,291,200	)		(6,908,986	)
Grupo Carso SAB de C.V.		(35,300	)		(154,416	)
Grupo Televisa SAB		(13,500	)		(87,866	)
Grupo Televisa SAB, ADR		(10,149	)		(330,959	)
Mexichem SAB de CV		(16,000	)		(44,362	)
Mexico Real Estate Management SA de C.V.		(1,452,378	)		(2,391,320	)
Minera Frisco SAB de CV, Series A-1		(300,800	)		(394,123	)
					(14,204,150	)
Poland
Grupa Azoty SA		(5,215	)		(99,727	)
South Africa
Aspen Pharmacare Holdings, Ltd.		(6,252	)		(234,103	)
Discovery Holdings Ltd.		(385,280	)		(3,794,747	)
Massmart Holdings Ltd.		(195,851	)		(2,787,610	)

	Shares			Value
Reference Entity — Short
South Africa (concluded)
Nampak Ltd.		(168,277	)	$	(613,460	)
Remgro Ltd.		(526,106	)		(12,173,958	)
Resilient Property Income Fund, Ltd.		(15,734	)		(119,346	)
RMB Holdings, Ltd.		(18,021	)		(101,784	)
Sappi Ltd.		(56,907	)		(233,648	)
Tiger Brands, Ltd.		(8,975	)		(302,671	)
					(20,361,327	)
South Korea
CJ Korea Express Co., Ltd.		(6,060	)		(1,061,312	)
Daewoo Engineering & Construction Co., Ltd.		(178,078	)		(1,099,811	)
Daewoo International Corp.		(2,057	)		(51,429	)
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		(15,454	)		(272,492	)
Doosan Heavy Industries & Construction Co., Ltd.		(1,070	)		(22,702	)
Eo Technics Co., Ltd.		(23,666	)		(2,769,698	)
Gamevil, Inc.		(1,527	)		(254,800	)
Halla Visteon Climate Control Corp.		(18,895	)		(795,408	)
Hotel Shilla Co., Ltd.		(38,845	)		(3,604,368	)
Hyundai Heavy Industries Co., Ltd.		(13,349	)		(1,367,897	)
Hyundai Hysco Co., Ltd.		(3,273	)		(229,072	)
Hyundai Merchant Marine Co., Ltd.		(3,082	)		(8,398	)
Hyundai Merchant Marine Co., Ltd.		(20,068	)		(188,092	)
Hyundai Mipo Dockyard		(90,291	)		(6,336,520	)
LG International Corp.		(46,476	)		(1,552,740	)
NHN Entertainment Corp.		(1,733	)		(117,601	)
Orion Corp.		(65	)		(62,025	)
Samsung Electro-Mechanics Co., Ltd.		(3,974	)		(241,862	)
Samsung Fine Chemicals Co., Ltd.		(47,309	)		(1,471,980	)
					(21,508,207	)
Spain
Abertis Infraestructuras SA		(23,492	)		(460,032	)
Taiwan
Chang Hwa Commercial Bank		(94,000	)		(53,040	)
Evergreen Marine Corp. Taiwan Ltd.		(6,457,000	)		(4,600,596	)
Formosa Chemicals & Fibre Corp.		(222,000	)		(475,048	)
Formosa Petrochemical Corp.		(152,000	)		(323,818	)
Giant Manufacturing Co., Ltd.		(12,000	)		(104,736	)
Gigasolar Materials Corp.		(40,000	)		(608,731	)
Gigastorage Corp.		(1,412,000	)		(1,140,052	)
Hermes Microvision, Inc.		(77,000	)		(3,635,748	)
Hiwin Technologies Corp.		(299,000	)		(2,459,913	)
Hotai Motor Co., Ltd.		(346,000	)		(4,971,632	)
Parade Technologies, Ltd.		(100,000	)		(995,429	)
Ruentex Industries, Ltd.		(1,118,000	)		(2,423,640	)
ScinoPharm Taiwan, Ltd.		(506,880	)		(849,631	)
Taiflex Scientific Co., Ltd.		(530,000	)		(755,091	)
Taiwan Glass Industry Corp.		(69,000	)		(50,147	)
Taiwan Mobile Co., Ltd.		(1,099,000	)		(3,623,843	)
Teco Electric and Machinery Co., Ltd.		(80,000	)		(74,681	)
TPK Holding Co., Ltd.		(244,000	)		(1,580,765	)
U-Ming Marine Transport Corp.		(533,000	)		(823,675	)
Unimicron Technology Corp.		(62,000	)		(42,460	)
Yulon Motor Co., Ltd.		(32,000	)		(46,732	)
					(29,639,408	)
Thailand
Samart Corp. PCL		(155,200	)		(193,229	)
Total Reference Entity — Short					(145,526,735	)
Net Value of Reference Entity — Goldman Sachs & Co.				$	33,840,048

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 13

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Goldman Sachs & Co. as of January 31, 2015, expiration dates 8/27/15 — 8/04/16:

	Shares		Value
Reference Entity — Long
Belgium
Nyrstar NV		5,253	$	19,761
Canada
Dominion Diamond Corp.		2,046		33,990
Methanex Corp.		15,118		668,157
Parex Resources, Inc.		7,927		42,919
				745,066
Denmark
Novo Nordisk A/S, Class B		192		8,557
Vestas Wind Systems A/S		1,280		49,733
				58,290
France
BioMerieux		885		96,635
Ipsen SA		4,741		241,290
Teleperformance		240		17,195
				355,120
Germany
Aurubis AG		105		5,692
Beiersdorf AG		991		87,123
Kloeckner & Co. SE		9,470		97,573
Krones AG		33		3,136
Merck KGaA		3,638		363,496
				557,020
Hong Kong
Dah Sing Financial Holdings, Ltd.		10,000		57,770
Hang Lung Properties Ltd.		2,000		5,895
HKT Trust and HKT Ltd.		4,000		5,242
Kerry Properties Ltd.		29,500		104,241
Luk Fook Holdings International, Ltd.		39,000		144,728
NWS Holdings Ltd.		1,000		1,856
Orient Overseas International Ltd.		21,000		136,991
Wheelock & Co. Ltd.		4,000		22,631
				479,354
Iran
Smurfit Kappa Group PLC		5,511		135,490
Ireland
Ingersoll-Rand PLC		2,286		151,790
Kerry Group PLC, Class A		976		70,735
				222,525
Italy
Ansaldo STS SpA		20,495		205,953
Parmalat SpA		4,267		12,103
Recordati SpA		21,056		347,986
				566,042
Japan
Alps Electric Co. Ltd.		300		6,245
Citizen Holdings Co. Ltd.		4,500		35,920
Daifuku Co. Ltd.		8,000		91,648
Disco Corp.		9,000		824,521
Enplas Corp.		4,000		142,739
Hitachi Capital Corp.		200		3,932
Hitachi Maxell, Ltd.		100		1,697
Hitachi Metals Ltd.		4,000		65,181
Keihin Corp.		3,800		60,570
Mazda Motor Corp.		14,200		291,674
Mitsubishi Materials Corp.		67,000		211,275
Murata Manufacturing Co. Ltd.		3,500		377,840

	Shares		Value
Reference Entity — Long
Japan (concluded)
Nachi-Fujikoshi Corp.		4,000	$	21,509
Nifco, Inc.		2,600		89,562
Omron Corp.		400		15,992
OSG Corp.		8,200		150,977
Sanrio Co. Ltd.		900		22,301
Shimano, Inc.		2,400		317,264
Sumitomo Metal Mining Co. Ltd.		1,000		14,292
Sysmex Corp.		100		4,469
Tadano Ltd.		9,000		108,322
Takata Corp.		8,000		93,306
TDK Corp.		600		37,393
Topcon Corp.		600		11,889
Yamato Kogyo Co. Ltd.		200		5,147
				3,005,665
Netherlands
Arcadis NV		13,268		401,560
Heineken NV		4,846		361,648
NXP Semiconductor NV		3,306		262,298
				1,025,506
Singapore
ComfortDelGro Corp. Ltd.		42,800		90,758
Flextronics International Ltd.		81,356		904,679
Indofood Agri Resources, Ltd.		15,700		8,208
Noble Group Ltd.		107,500		84,091
Singapore Airlines Ltd.		12,900		120,493
				1,208,229
Spain
Gamesa Corp. Tecnologica SA		526		5,200
Gas Natural SDG SA		11,057		259,550
Inmobiliaria Colonial SA		5,844		3,960
				268,710
Sweden
Telefonaktiebolaget LM Ericsson, Class B		12,640		153,251
Switzerland
Garmin Ltd.		288		15,080
Kuoni Reisen Holding AG		272		91,239
Straumann Holding AG, Registered Shares		72		16,263
				122,582
United Kingdom
Inchcape PLC		21,959		229,381
Pace PLC		86,172		432,463
				661,844
United States
Adobe Systems, Inc.		1,431		100,356
Akamai Technologies, Inc.		3,680		214,010
AmTrust Financial Services, Inc.		3,250		164,515
Aruba Networks, Inc.		12,745		211,312
Aspen Technology, Inc.		25,109		887,478
The Boeing Co.		685		99,578
Briggs & Stratton Corp.		183		3,369
Cabot Corp.		13,595		576,564
Calpine Corp.		12,460		260,165
Caterpillar, Inc.		3,455		276,296
CBRE Group, Inc., Class A		128		4,140
Century Aluminum Co.		2,717		62,790
Citrix Systems, Inc.		2,011		119,172
Columbia Sportswear Co.		6,284		267,070
Cytec Industries, Inc.		7,134		342,361
The Dow Chemical Co.		62		2,800
The Estee Lauder Cos., Inc., Class A		336		23,718
Foot Locker, Inc.		2,778		147,845

See Notes to Financial Statements.

14 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares			Value
Reference Entity — Long
United States (concluded)
Greatbatch, Inc.		95		$	4,613
Hasbro, Inc.		8,113			445,566
HCA Holdings, Inc.		8,885			629,058
Houghton Mifflin Harcourt Co.		2,692			52,979
Huntsman Corp.		1,673			36,739
Hyster-Yale Materials Handling, Inc.		1,316			82,447
IAC/InterActiveCorp		4,199			255,929
Iconix Brand Group, Inc.		25,685			853,769
Ingram Micro, Inc., Class A		25,694			646,975
The Interpublic Group of Cos., Inc.		14,233			283,806
Invesco Ltd.		4,748			174,394
ITT Corp.		7,592			271,870
Jones Lang LaSalle, Inc.		3,483			512,280
Las Vegas Sands Corp.		763			41,484
Lear Corp.		2,080			208,728
Liberty TripAdvisor Holdings, Inc., Series A		4,755			113,835
Linear Technology Corp.		3,956			177,783
LogMeIn, Inc.		2,694			128,100
Manpowergroup, Inc.		2,850			207,708
Micron Technology, Inc.		35,945			1,051,930
Moog, Inc., Class A		106			7,452
Newfield Exploration Co.		6,542			194,821
Penske Automotive Group, Inc.		4,356			210,613
Progress Software Corp.		19,446			487,122
Rockwell Automation, Inc.		648			70,580
Rovi Corp.		17,556			405,719
Sealed Air Corp.		5,906			239,193
Skyworks Solutions, Inc.		1,335			110,872
Spectrum Brands Holdings, Inc.		1,230			110,306
SPX Corp.		2,273			189,955
The Timken Co.		5,042			191,646
World Fuel Services Corp.		11,799			577,797
Xilinx, Inc.		3,811			147,009
Zebra Technologies Corp., Class A		3,295			275,001
					13,161,618
Total Reference Entity — Long					22,746,073
Reference Entity — Short
Australia
New Hope Corp., Ltd.		(6,338	)		(11,548	)
Nufarm, Ltd.		(3,276	)		(14,395	)
Orica Ltd.		(653	)		(9,166	)
					(35,109	)
Austria
IMMOFINANZ AG		(3,185	)		(7,278	)
Finland
Outokumpu OYJ		(70,334	)		(380,537	)
France
Kering		(2,408	)		(485,846	)
Germany
Dialog Semiconductor PLC		(6,797	)		(259,950	)
ElringKlinger AG		(12,465	)		(434,320	)
Puma SE		(18	)		(3,426	)
					(697,696	)
Hong Kong
Chow Tai Fook Jewellery Group, Ltd.		(109,800	)		(145,570	)
Esprit Holdings Ltd.		(400	)		(450	)
Hong Kong & China Gas Co., Ltd.		(66,000	)		(151,138	)
Hong Kong Exchanges and Clearing, Ltd.		(45,800	)		(1,054,094	)
Melco International Development, Ltd.		(111,000	)		(221,009	)

	Shares			Value
Reference Entity — Short
Hong Kong (concluded)
Shangri-La Asia, Ltd.		(2,000	)	$	(2,596	)
Swire Pacific, Ltd.		(2,000	)		(26,783	)
					(1,601,640	)
Ireland
Accenture PLC, Class A		(6,891	)		(579,051	)
Italy
Saipem SpA		(9,504	)		(85,504	)
Japan
Chiyoda Corp.		(4,000	)		(30,808	)
Daikin Industries, Ltd.		(1,200	)		(83,503	)
DIC Corp.		(1,000	)		(2,476	)
Eisai Co., Ltd.		(2,900	)		(144,589	)
Ibiden Co., Ltd.		(4,400	)		(66,147	)
The Japan Steel Works, Ltd.		(11,000	)		(44,002	)
Nabtesco Corp.		(500	)		(12,908	)
NGK Insulators, Ltd.		(9,000	)		(181,361	)
Nippon Paint Co., Ltd.		(10,500	)		(328,915	)
Nisshinbo Holdings, Inc.		(4,000	)		(44,949	)
Pigeon Corp.		(1,300	)		(81,170	)
Sharp Corp.		(60,000	)		(117,451	)
Shimadzu Corp.		(3,000	)		(31,169	)
Shinko Electric Industries Co., Ltd.		(3,000	)		(21,013	)
Sumco Corp.		(4,500	)		(75,523	)
Sumitomo Rubber Industries, Ltd.		(1,700	)		(26,436	)
Teijin Ltd.		(47,000	)		(140,006	)
Toray Industries, Inc.		(28,000	)		(238,506	)
Toyo Tire & Rubber Co., Ltd.		(7,100	)		(159,917	)
Ube Industries, Ltd.		(3,000	)		(4,493	)
Ushio, Inc.		(6,200	)		(71,828	)
The Yokohama Rubber Co., Ltd.		(1,000	)		(9,408	)
					(1,916,578	)
Netherlands
SBM Offshore NV		(19,881	)		(216,909	)
Norway
Opera Software ASA		(101,693	)		(1,347,163	)
Portugal
Jeronimo Martins SGPS SA		(35,808	)		(385,164	)
Singapore
DBS Group Holdings, Ltd.		(1,700	)		(24,785	)
Sembcorp Marine, Ltd.		(1,000	)		(2,213	)
					(26,998	)
Switzerland
Clariant AG		(1,588	)		(25,513	)
Dufry AG		(469	)		(68,897	)
Holcim Ltd.		(1,028	)		(71,870	)
OC Oerlikon Corp. AG		(1,190	)		(13,536	)
SGS SA		(69	)		(130,886	)
Sulzer AG		(3,162	)		(334,793	)
The Swatch Group AG		(11	)		(4,375	)
					(649,870	)
United Kingdom
AVEVA Group PLC		(6,948	)		(137,407	)
CNH Industrial NV		(86,125	)		(655,650	)
HSBC Holdings PLC		(4,962	)		(45,398	)
Inmarsat PLC		(33,170	)		(415,630	)
Ophir Energy PLC		(74,375	)		(150,580	)
Rotork PLC		(463	)		(16,005	)
Smiths Group PLC		(2,719	)		(46,017	)
Spectris PLC		(8,856	)		(278,292	)
					(1,744,979	)

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 15

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
United States
Aflac, Inc.		(3,685	)	$	(210,340	)
Amazon.com, Inc.		(1,157	)		(410,191	)
American Tower Corp.		(155	)		(15,027	)
Arthur J Gallagher & Co.		(11,868	)		(527,295	)
Balchem Corp.		(3,070	)		(162,618	)
Brady Corp., Class A Class A		(2,906	)		(76,050	)
The Brink’s Co.		(592	)		(13,267	)
CACI International, Inc., Class A Class A		(6,389	)		(540,445	)
Cinemark Holdings, Inc.		(562	)		(20,889	)
Colfax Corp.		(2,807	)		(127,185	)
CommVault Systems, Inc.		(2,327	)		(101,411	)
Coty, Inc., Class A		(51,186	)		(973,558	)
Cray, Inc.		(15,420	)		(500,996	)
Cree, Inc.		(27,451	)		(970,667	)
Crown Castle International Corp.		(2,135	)		(184,699	)
Cypress Semiconductor Corp.		(9,277	)		(136,650	)
Dealertrack Technologies, Inc.		(8,897	)		(357,659	)
Deere & Co.		(72	)		(6,134	)
Diebold, Inc.		(4,343	)		(135,502	)
Donaldson Co., Inc.		(853	)		(31,186	)
Dycom Industries, Inc.		(572	)		(17,623	)
Emerson Electric Co.		(653	)		(37,182	)
Essex Property Trust, Inc.		(259	)		(58,547	)
FARO Technologies, Inc.		(359	)		(19,871	)
First Cash Financial Services, Inc.		(3,548	)		(176,407	)
FleetCor Technologies, Inc.		(25	)		(3,512	)
Franklin Electric Co., Inc.		(10,626	)		(363,515	)
FTI Consulting, Inc.		(401	)		(16,309	)
General Mills, Inc.		(535	)		(28,077	)
General Motors Co.		(11,779	)		(384,231	)
Gentex Corp.		(2,934	)		(48,968	)
Groupon, Inc.		(17,462	)		(125,028	)
HeartWare International, Inc.		(4,740	)		(395,932	)
HEICO Corp.		(1,735	)		(105,280	)
Hillenbrand, Inc.		(71	)		(2,230	)
Infinera Corp.		(45,136	)		(727,592	)
Ingredion, Inc.		(700	)		(56,448	)
Jabil Circuit, Inc.		(19,009	)		(391,775	)
KBR, Inc.		(4,635	)		(76,617	)
McDermott International, Inc.		(1,143	)		(2,572	)
Microsemi Corp.		(1,654	)		(46,080	)
Navistar International Corp.		(2,883	)		(84,818	)
NetSuite, Inc.		(936	)		(92,130	)
Peabody Energy Corp.		(68,364	)		(425,908	)
PriceSmart, Inc.		(3,081	)		(251,964	)
Republic Services, Inc.		(98	)		(3,889	)
Rogers Corp.		(289	)		(21,346	)
Schweitzer-Mauduit International, Inc.		(2,658	)		(103,290	)
Sotheby’s		(11,851	)		(504,260	)
The Spectranetics Corp.		(10,625	)		(347,544	)
TAL International Group, Inc.		(37,457	)		(1,522,627	)
Universal Display Corp.		(708	)		(22,557	)
UTi Worldwide, Inc.		(8,864	)		(105,216	)
Veeco Instruments, Inc.		(6,302	)		(183,829	)
The Western Union Co.		(13,798	)		(234,566	)
WR Grace & Co.		(203	)		(17,596	)
XPO Logistics, Inc.		(2,353	)		(86,567	)
					(12,593,672	)
Total Reference Entity — Short					(22,753,994	)
Net Value of Reference Entity — Goldman Sachs & Co.					(7,921	)

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co., Inc. as of January 31, 2015, expiration dates 5/16/16 — 1/22/18:

	Shares		Value
Reference Entity — Long
Brazil
AMBEV SA		135,300	$	888,974
Banco do Brasil SA		3,000		23,099
BM&FBovespa SA		31,700		107,508
Bradespar SA, Preference Shares		108,700		470,328
CCR SA		59,400		338,258
Cia Energetica de Minas Gerais, ADR		16,437		74,131
Cia Energetica de Sao Paulo, Preference ‘B’ Shares		49,100		431,117
Cia Paranaense de Energia — ADR		27,266		316,286
Cia Paranaense de Energia, Preference B Shares		49,400		574,408
EDP — Energias do Brasil SA		112,300		362,440
Embraer SA		17,500		154,831
Embraer SA, ADR		11,754		414,446
Even Construtora e Incorporadora SA		47,000		75,845
Gerdau SA — ADR		728,100		2,511,945
Gerdau SA, Preference Shares		215,800		732,670
Itau Unibanco Holding SA, Preference Shares		32,300		396,038
JBS SA		567,000		2,417,397
Metalurgica Gerdau SA, Preference Shares		221,100		810,817
Multiplus SA		33,600		435,144
Petroleo Brasileiro SA, Preference Shares		126,500		385,641
Qualicorp SA		81,063		802,095
Telefonica Brasil SA — ADR		39,502		728,417
Telefonica Brasil SA, Preference Shares		23,500		436,150
				13,887,985
Chile
Empresas COPEC SA		41,717		472,097
Enersis SA		504,633		156,245
				628,342
China
Agricultural Bank of China Ltd., Class H		2,505,000		1,223,225
Anhui Conch Cement Co., Ltd., Class H		293,000		980,839
Anhui Expressway Co., Ltd., Class H		234,000		169,545
Anta Sports Products Ltd.		2,100,000		3,700,321
Beijing Capital International Airport Co. Ltd., Class H		2,952,000		2,804,821
China Cinda Asset Management Co., Ltd.		293,000		138,588
China Communications Services Corp. Ltd., Class H		804,000		362,051
China Shenhua Energy Co. Ltd., Class H		521,500		1,431,535
China Unicom Hong Kong Ltd.		862,000		1,290,238
CSPC Pharmaceutical Group Ltd.		716,000		604,014
Datang International Power Generation Co. Ltd., Class H		2,550,000		1,394,188
Dongfeng Motor Group Co. Ltd., Class H		62,000		89,667
Greentown China Holdings Ltd.		122,000		106,699
Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd., Class H, Class H		80,000		283,296
Guangzhou R&F Properties Co. Ltd., Class H		1,962,000		2,224,422
Industrial & Commercial Bank of China Ltd., Class H		931,000		663,921
Longfor Properties Co. Ltd.		86,000		112,982
Lonking Holdings Ltd.		589,000		111,417
Ping An Insurance Group Co. of China Ltd., Class H		85,000		900,909
Shanghai Pharmaceuticals Holding Co., Ltd., Class H		297,600		644,429
Sino-Ocean Land Holdings Ltd.		274,500		175,532
Sinopharm Group Co. Ltd., Class H		321,600		1,170,964
Zhejiang Expressway Co. Ltd., Class H		3,254,000		4,140,934
				24,724,537

See Notes to Financial Statements.

16 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares		Value
Reference Entity — Long
Hong Kong
China Mobile Ltd.		129,000	$	1,690,994
China Mobile, Ltd., ADR		83,969		5,484,855
China Power International Development, Ltd.		1,416,000		803,951
China Resources Cement Holdings Ltd.		3,190,000		1,893,089
China Travel International Inv HK		3,186,000		1,045,506
China Unicom Hong Kong, Ltd., ADR		6,437		96,233
Franshion Properties China Ltd.		1,894,000		556,079
GOME Electrical Appliances Holding Ltd.		15,860,000		2,183,172
Guangdong Investment Ltd.		152,000		204,035
Kingboard Chemical Holdings Ltd.		684,500		1,107,056
KWG Property Holding Ltd.		1,454,000		928,608
REXLot Holdings, Ltd.		2,150,000		167,898
Shanghai Industrial Holdings, Ltd.		148,000		437,244
Shenzhen Investment Ltd.		2,016,000		581,840
Shimao Property Holdings Ltd.		251,000		526,849
Sino Biopharmaceutical Ltd.		1,184,000		1,182,805
Yuexiu Property Co., Ltd.		3,912,560		760,414
				19,650,628
Hungary
MOL Hungarian Oil & Gas PLC		34,310		1,373,164
OTP Bank PLC		22,044		292,307
				1,665,471
Indonesia
Adaro Energy Tbk PT		10,553,100		829,219
Matahari Putra Prima Tbk PT		2,246,300		673,846
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		2,126,700		307,827
United Tractors Tbk PT		1,538,600		2,165,056
				3,975,948
Malaysia
British American Tobacco Malaysia Bhd		16,600		301,758
YTL Power International Bhd		28,800		12,687
				314,445
Mexico
Grupo Aeroportuario del Pacifico SAB de CV, ADR		30,288		2,011,426
Grupo Aeroportuario del Pacifico SAB de CV, Class B		69,688		460,728
Grupo Bimbo SAB de CV, Series A		341,342		868,527
Promotora y Operadora de Infraestructura SAB de CV		60,995		686,552
				4,027,233
Philippines
Aboitiz Equity Ventures, Inc.		44,000		56,368
Energy Development Corp.		752,000		145,433
Globe Telecom, Inc.		9,850		388,795
Universal Robina Corp.		192,260		902,003
				1,492,599
Poland
Enea SA		69,678		309,581
Grupa Lotos SA		141,909		936,417
KGHM Polska Miedz SA		18,296		518,684
Polski Koncern Naftowy Orlen SA		189,500		2,795,990
Tauron Polska Energia SA		1,708,359		2,298,371
				6,859,043
Qatar
Qatar National Bank		16,181		878,615
South Africa
AngloGold Ashanti, Ltd., ADR		8,148		100,872
Bidvest Group Ltd.		37,280		1,028,875
Clicks Group, Ltd.		62,048		481,252

	Shares		Value
Reference Entity — Long
South Africa (concluded)
FirstRand Ltd.		581,656	$	2,588,586
Gold Fields Ltd.		90,907		523,699
Liberty Holdings Ltd.		11,438		128,769
MMI Holdings Ltd.		163,409		439,640
MTN Group Ltd.		99,355		1,715,732
Sanlam Ltd.		126,731		759,593
Sibanye Gold, Ltd.		237,334		641,726
				8,408,744
South Korea
Amorepacific Corp.		446		1,074,866
Doosan Infracore Co., Ltd.		15,663		145,019
Hyundai Engineering & Construction Co., Ltd.		1,179		46,658
Hyundai Mobis		10,192		2,304,083
Hyundai Motor Co.		5,410		831,430
Hyundai Steel Co.		8,545		512,669
Industrial Bank of Korea		23,466		275,662
Kangwon Land, Inc.		25,948		765,189
Korea Electric Power Corp.		3,733		145,956
Korea Line Corp.		11,072		221,825
KT Skylife Co., Ltd.		67,340		994,387
KT Submarine Co., Ltd.		22,854		106,054
LG Corp.		1,513		85,148
Lotte Confectionery Co., Ltd.		38		64,758
Lotte Food Co., Ltd.		530		299,730
LS Corp.		10,289		451,002
Mando Corp.		2,743		157,938
Medy-Tox, Inc.		3,171		1,065,491
Poongsan Corp.		30,030		620,885
SK Innovation Co., Ltd.		8,844		751,027
SK Networks Co., Ltd.		142,356		1,219,426
SK Telecom Co., Ltd., ADR		48,540		1,395,525
SKC Co., Ltd.		7,627		209,449
Sungwoo Hitech Co., Ltd.		34,182		377,038
				14,121,215
Spain
Cemex Latam Holdings SA		22,821		142,351
Taiwan
Advanced Semiconductor Engineering, Inc.		1,563,000		1,962,689
Advanced Semiconductor Engineering, Inc. — ADR		46,974		310,498
Asia Cement Corp.		477,080		575,177
Cheng Uei Precision Industry Co., Ltd.		134,000		236,376
Chicony Electronics Co., Ltd.		134,000		367,701
Chimei Materials Technology Corp.		215,600		217,727
China Steel Chemical Corp.		36,000		174,070
CTCI Corp.		292,000		461,414
Elan Microelectronics Corp.		51,000		79,753
Everlight Electronics Co., Ltd.		45,000		107,943
Far Eastern Department Stores Ltd.		642,192		547,911
Far Eastern New Century Corp.		773,000		777,998
Foxconn Technology Co., Ltd.		53,000		143,505
Innolux Corp.		3,853,000		1,856,233
King Yuan Electronics Co., Ltd.		1,364,000		1,139,492
Novatek Microelectronics Corp.		13,000		71,507
Pou Chen Corp.		408,000		558,755
President Chain Store Corp.		25,000		192,182
Realtek Semiconductor Corp.		30,150		91,415
Shin Kong Financial Holding Co., Ltd.		1,913,000		533,286
Sitronix Technology Corp.		46,000		150,608
Soft-World International Corp.		31,000		98,218
Taiwan Cement Corp.		1,198,000		1,617,435
Taiwan Paiho, Ltd.		168,000		284,026
Taiwan Semiconductor Manufacturing Co. Ltd.		224,000		985,069
Transcend Information, Inc.		41,000		130,646
Unity Opto Technology Co., Ltd.		254,000		235,178

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 17

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares			Value
Reference Entity — Long
Taiwan (concluded)
Win Semiconductors Corp.		611,000		$	641,839
Wistron Corp.		2,506,000			2,284,694
Yuanta Financial Holding Co., Ltd.		1,104,775			529,991
					17,363,336
Turkey
Enka Insaat ve Sanayi AS		652,817			1,318,888
Haci Omer Sabanci Holding AS		350,361			1,475,832
KOC Holding AS		78,379			406,416
Koza Altin Isletmeleri AS		72,402			572,642
Pegasus Hava Tasimaciligi AS		865			10,716
TAV Havalimanlari Holding AS		103,570			772,551
Tekfen Holding		31,515			73,804
Tupras Turkiye Petrol Rafinerileri AS		99,119			2,148,282
Turk Hava Yollari		43,359			165,476
Turk Telekomunikasyon AS		248,287			742,835
					7,687,442
United Kingdom
Old Mutual PLC		542,475			1,700,351
Total Reference Entity — Long					127,528,285
Reference Entity — Short
Brazil
Aliansce Shopping Centers SA		(109,600	)		(657,620	)
Duratex SA		(18,480	)		(51,172	)
Equatorial Energia SA		(521,309	)		(4,857,067	)
Klabin SA		(945,538	)		(4,824,156	)
Kroton Educacional SA		(683,300	)		(3,132,243	)
Marcopolo SA, Preference Shares		(52,600	)		(52,536	)
Oi SA		(27,700	)		(51,513	)
Smiles SA		(201,187	)		(3,167,856	)
					(16,794,163	)
China
Airtac International Group		(2,000	)		(17,365	)
Aluminum Corp. of China Ltd. — ADR		(12,765	)		(141,947	)
Aluminum Corp. of China Ltd., Class H		(4,920,000	)		(2,221,230	)
AviChina Industry & Technology Co., Ltd., Class H		(764,000	)		(493,647	)
BBMG Corp.		(148,500	)		(129,958	)
China Coal Energy Co., Ltd.		(1,184,000	)		(652,264	)
China COSCO Holdings Co., Ltd., Class H		(675,500	)		(333,895	)
China Eastern Airlines Corp., Ltd., Class H, Class H		(554,000	)		(280,965	)
China Longyuan Power Group Corp., Class H		(3,000	)		(3,220	)
China Petroleum & Chemical Corp.		(40,000	)		(31,649	)
China Railway Construction Corp., Ltd.		(91,500	)		(104,877	)
China Shanshui Cement Group, Ltd.		(1,885,000	)		(827,809	)
China Shipping Container Lines Co., Ltd., Class H		(17,878,000	)		(5,610,574	)
China Shipping Development Co., Ltd., Class H		(1,622,000	)		(1,154,057	)
CNOOC, Ltd.		(1,298,000	)		(1,722,269	)
CNOOC, Ltd. — ADR		(3,411	)		(454,175	)
ENN Energy Holdings Ltd.		(444,000	)		(2,624,598	)
First Tractor Co., Ltd., Class H, Class H		(86,000	)		(63,206	)
Great Wall Motor Co., Ltd.		(196,500	)		(1,121,599	)
Haitian International Holdings, Ltd.		(289,000	)		(560,309	)
Hengan International Group Co., Ltd.		(5,500	)		(65,286	)
Hilong Holding, Ltd.		(240,000	)		(74,094	)
Kangda International Environmental Co., Ltd.		(278,000	)		(122,728	)
Kingsoft Corp., Ltd.		(35,000	)		(83,407	)
Maanshan Iron & Steel Co., Ltd., Class H		(258,000	)		(70,086	)
PetroChina Co., Ltd.		(2,514,000	)		(2,729,956	)
Semiconductor Manufacturing International Corp.		(47,380,000	)		(4,106,835	)
Shanghai Electric Group Co., Ltd.		(1,388,000	)		(851,058	)
Shui On Land Ltd.		(298,500	)		(67,196	)

	Shares				Value
Reference Entity — Short
China (concluded)
SOHO China, Ltd.		(70,500	)		$	(48,962	)
Sunac China Holdings, Ltd.		(759,000	)			(679,471	)
Sunny Optical Technology Group Co., Ltd.		(106,000	)			(160,788	)
TCL Communication Technology Holdings, Ltd.		(261,000	)			(229,910	)
Tingyi Cayman Islands Holding Corp.		(2,408,000	)			(5,931,194	)
Uni-President China Holdings, Ltd.		(787,000	)			(680,172	)
Want Want China Holdings, Ltd.		(433,000	)			(518,524	)
Weichai Power Co., Ltd., Class H		(14,000	)			(55,385	)
Yanzhou Coal Mining Co., Ltd., Class H		(1,830,000	)			(1,455,293	)
						(36,479,958	)
Egypt
Global Telecom Holding, — GDR		(20,739	)			(59,825	)
Greece
Eurobank Ergasias SA		(3,702,983	)			(457,921	)
Hong Kong
Beijing Enterprises Water Group Ltd.		(302,000	)			(198,272	)
Brilliance China Automotive Holdings Ltd.		(72,000	)			(132,069	)
China Agri-Industries Holdings Ltd.		(3,005,000	)			(1,213,761	)
China Everbright International, Ltd.		(54,000	)			(79,673	)
China Gas Holdings, Ltd.		(54,000	)			(83,460	)
China Mengniu Dairy Co., Ltd.		(38,000	)			(173,149	)
China Oceanwide Holdings, Ltd.		(268,000	)			(28,827	)
China Resources Enterprise, Ltd.		(8,007	)			(17,530	)
Kunlun Energy Co., Ltd.		(4,384,000	)			(4,564,675	)
Towngas China Co., Ltd.		(47,000	)			(41,045	)
						(6,532,461	)
Malta
Brait SE		(739,085	)			(4,881,890	)
Mexico
Alfa SAB de C.V.		(50,400	)			(92,364	)
Alsea SAB de C.V.		(57,286	)			(153,328	)
Compartamos SAB de C.V.		(41,200	)			(77,840	)
Empresas ICA SAB de C.V.		(78,400	)			(81,436	)
Fibra Uno Administracion SA de C.V.		(131,627	)			(396,914	)
Grupo Financiero Inbursa SAB de C.V.		(15,900	)			(40,998	)
Grupo Lala SAB de C.V.		(53,800	)			(105,127	)
Grupo Mexico SAB de C.V.		(21,600	)			(57,049	)
Grupo Televisa SAB		(48,700	)			(316,967	)
Mexichem SAB de CV		(113,972	)			(316,000	)
Minera Frisco SAB de CV, Series A-1		(257,800	)			(337,782	)
						(1,975,805	)
South Africa
Aspen Pharmacare Holdings, Ltd.		(155,087	)			(5,807,142	)
Discovery Holdings Ltd.		(51,370	)			(505,960	)
Nampak Ltd.		(63,770	)			(232,476	)
Resilient Property Income Fund, Ltd.		(11,731	)			(88,982	)
RMB Holdings, Ltd.		(1,877	)			(10,601	)
Tiger Brands, Ltd.		(725	)			(24,450	)
				��		(6,669,611	)
South Korea
Cheil Industries, Inc.		(4,596	)			(571,558	)
Daewoo Engineering & Construction Co., Ltd.		(72,037	)			(444,901	)
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		(8,836	)			(155,800	)
Doosan Corp.		(11,745	)			(1,111,017	)
Eo Technics Co., Ltd.		(6,831	)			(799,451	)
Halla Visteon Climate Control Corp.		(15,613	)			(657,248	)
Hanjin Transportation Co., Ltd.		(2,427	)			(140,530	)
Hotel Shilla Co., Ltd.		(1,016	)			(94,273	)
Hyundai Glovis Co., Ltd.		(264	)			(58,801	)
Hyundai Heavy Industries Co., Ltd.		(27,097	)			(2,776,680	)

See Notes to Financial Statements.

18 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
South Korea (concluded)
Hyundai Hysco Co., Ltd.		(745	)	$	(52,141	)
i-SENS, Inc.		(736	)		(42,136	)
Interpark INT Corp.		(3,304	)		(70,666	)
LG Household & Health Care Ltd.		(861	)		(541,668	)
LG International Corp.		(2,273	)		(75,940	)
Orion Corp/Republic of Korea		(332	)		(316,804	)
Samsung Heavy Industries Co., Ltd.		(5,775	)		(93,495	)
					(8,003,109	)
Taiwan
Chang Hwa Commercial Bank		(783,360	)		(442,018	)
Eclat Textile Co., Ltd.		(48,280	)		(499,811	)
Formosa Petrochemical Corp.		(504,000	)		(1,073,712	)
Hermes Microvision, Inc.		(6,000	)		(283,305	)
Highwealth Construction Corp.		(118,000	)		(239,179	)
Hiwin Technologies Corp.		(80,330	)		(660,886	)
MediaTek, Inc.		(10,000	)		(152,052	)
Motech Industries, Inc.		(48,000	)		(64,218	)
Quanta Computer, Inc.		(143,000	)		(348,490	)
Ruentex Industries, Ltd.		(316,000	)		(685,036	)
Taiwan Mobile Co., Ltd.		(98,000	)		(323,145	)
TPK Holding Co., Ltd.		(11,000	)		(71,264	)
TSRC Corp.		(1,000	)		(1,189	)
Yang Ming Marine Transport Corp.		(110,000	)		(59,234	)
					(4,903,539	)
Thailand
BEC World PCL		(28,300	)		(44,530	)
Minor International PCL		(1,181,500	)		(1,308,566	)
PTT Exploration & Production PCL		(248,200	)		(826,575	)
Siam Commercial Bank PCL		(32,400	)		(177,690	)
					(2,357,361	)
Turkey
BIM Birlesik Magazalar		(128,716	)		(2,597,511	)
Turkcell Iletisim Hizmetleri AS—ADR		(128,369	)		(1,853,648	)
					(4,451,159	)
Total Reference Entity — Short					(93,566,802	)
Net Value of Reference Entity — Morgan Stanley & Co., Inc.				$	33,961,483

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with Morgan Stanley & Co., Inc. as of January 31, 2015, expiration date 2/25/16:

Reference Entity — Long
Australia
Ramsay Health Care Ltd.	9,700	$	446,382
Belgium
Nyrstar NV	3,896		14,656
Canada
Dominion Diamond Corp.	4,148		68,910
Methanex Corp.	6,480		286,391
Parex Resources, Inc.	7,210		39,037
			394,338
Denmark
Novo Nordisk A/S, Class B	19,820		883,391
Vestas Wind Systems A/S	2,512		97,600
			980,991
France
BioMerieux	62		6,770
Hermes International	50		16,969
Ingenico	378		39,517

	Shares		Value
Reference Entity — Long
France (concluded)
Ipsen SA		4,904	$	249,586
				312,842
Germany
Duerr AG		2,807		255,468
Kloeckner & Co. SE		47,035		484,622
Merck KGaA		436		43,564
				783,654
Hong Kong
Dah Sing Financial Holdings, Ltd.		4,400		25,419
Hang Lung Properties Ltd.		10,000		29,403
Hutchison Whampoa Ltd.		64,000		849,503
Kerry Properties Ltd.		61,500		217,315
Luk Fook Holdings International, Ltd.		41,000		152,149
Orient Overseas International Ltd.		4,000		26,093
Wheelock & Co. Ltd.		1,000		5,658
				1,305,540
Iran
Smurfit Kappa Group PLC		5,974		146,873
Ireland
Ingersoll-Rand PLC		961		63,810
Kerry Group PLC, Class A		792		57,400
				121,210
Italy
Ansaldo STS SpA		29,701		298,464
Parmalat SpA		6,145		17,429
Recordati SpA		16,910		279,466
				595,359
Japan
Alps Electric Co. Ltd.		1,300		27,063
Casio Computer Co. Ltd.		600		9,393
Citizen Holdings Co. Ltd.		13,000		103,768
Daifuku Co. Ltd.		11,800		135,181
Disco Corp.		4,400		403,099
Enplas Corp.		1,800		64,233
FANUC Corp.		900		152,440
Fujitsu General Ltd.		3,000		29,426
Hitachi Capital Corp.		500		9,830
Hitachi Maxell, Ltd.		1,000		16,972
Keihin Corp.		16,600		264,594
Mazda Motor Corp.		3,200		65,729
Mitsubishi Materials Corp.		33,000		104,061
Murata Manufacturing Co. Ltd.		8,600		928,407
Nifco, Inc.		2,900		99,896
Nippon Sheet Glass Co., Ltd.		9,000		8,354
Omron Corp.		2,100		83,955
OSG Corp.		11,400		209,894
Sanken Electric Co., Ltd.		1,000		8,179
Sanrio Co. Ltd.		1,700		42,123
Shimano, Inc.		3,300		436,238
Sumitomo Metal Mining Co. Ltd.		3,000		42,876
Tadano Ltd.		10,000		120,358
Takata Corp.		12,900		150,456
TDK Corp.		100		6,232
Topcon Corp.		1,300		25,760
TS Tech Co., Ltd.		1,500		37,793
				3,586,310
Netherlands
Arcadis NV		28,397		859,443
Heineken NV		5,292		394,933
NXP Semiconductor NV		3,023		239,845
				1,494,221

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 19

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares		Value
Reference Entity — Long
Norway
BW LPG Ltd.		6,839	$	42,240
Singapore
ComfortDelGro Corp. Ltd.		117,700		249,583
Flextronics International Ltd.		60,970		677,986
Noble Group Ltd.		59,300		46,387
Singapore Airlines Ltd.		6,600		61,648
Venture Corp. Ltd.		17,300		103,887
				1,139,491
Spain
Gamesa Corp. Tecnologica SA		30,526		301,802
Gas Natural SDG SA		17,073		400,768
Inmobiliaria Colonial SA		14,338		9,716
				712,286
Sweden
Telefonaktiebolaget LM Ericsson, Class B		30,165		365,728
Switzerland
Garmin Ltd.		1,087		56,916
Kuoni Reisen Holding AG		201		67,423
				124,339
United Kingdom
African Barrick Gold PLC		474		2,013
Inchcape PLC		36,876		385,203
Pace PLC		92,306		463,247
				850,463
United States
Adobe Systems, Inc.		2,371		166,278
Air Lease Corp.		153		5,346
Akamai Technologies, Inc.		1,718		99,910
AmTrust Financial Services, Inc.		2,471		125,082
Aruba Networks, Inc.		27,697		459,216
Aspen Technology, Inc.		12,875		455,067
The Boeing Co.		4,615		670,883
Cabot Corp.		9,205		390,384
Cabot Microelectronics Corp.		12,984		641,539
Calpine Corp.		12,326		257,367
Cameron International Corp.		6,780		303,608
Caterpillar, Inc.		5,283		422,482
CBRE Group, Inc., Class A		391		12,645
Century Aluminum Co.		17,405		402,230
Citrix Systems, Inc.		4,073		241,366
Columbia Sportswear Co.		5,491		233,367
Cytec Industries, Inc.		18,391		882,584
Deckers Outdoor Corp.		514		33,950
Eastman Chemical Co.		287		20,345
The Estee Lauder Cos., Inc., Class A		945		66,708
Foot Locker, Inc.		605		32,198
Fossil Group, Inc.		120		11,736
Greatbatch, Inc.		1,717		83,378
Hasbro, Inc.		7,899		433,813
HCA Holdings, Inc.		10,103		715,292
Houghton Mifflin Harcourt Co.		1,795		35,326
Huntsman Corp.		7,432		163,207
Hyster-Yale Materials Handling, Inc.		1,573		98,548
IAC/InterActiveCorp		5,950		362,652
Iconix Brand Group, Inc.		7,206		239,527
Ingram Micro, Inc., Class A		20,166		507,780
The Interpublic Group of Cos., Inc.		7,670		152,940
Invesco Ltd.		2,241		82,312
ITT Corp.		3,741		133,965
Jones Lang LaSalle, Inc.		439		64,568
Lear Corp.		1,439		144,404
Liberty TripAdvisor Holdings, Inc., Series A		9,809		234,827

	Shares			Value
Reference Entity — Long
United States (concluded)
Linear Technology Corp.		4,540		$	204,028
LogMeIn, Inc.		5,302			252,110
LyondellBasell Industries NV, Class A		724			57,261
Manpowergroup, Inc.		22,025			1,605,182
Micron Technology, Inc.		8,842			258,761
Moog, Inc., Class A		439			30,862
Penske Automotive Group, Inc.		17,974			869,043
Progress Software Corp.		20,906			523,695
Rovi Corp.		9,239			213,513
Sealed Air Corp.		1,511			61,196
Sirona Dental Systems, Inc.		75			6,767
Skyworks Solutions, Inc.		1,435			119,177
Spectrum Brands Holdings, Inc.		1,221			109,499
SPX Corp.		1,586			132,542
The Timken Co.		2,410			91,604
Unisys Corp.		314			6,886
VF Corp.		41			2,844
WABCO Holdings, Inc.		1,934			184,059
World Fuel Services Corp.		10,080			493,618
Xilinx, Inc.		5,960			229,907
Zebra Technologies Corp., Class A		2,705			225,759
					15,065,143
Total Reference Entity — Long					28,482,066
Reference Entity — Short
Australia
Nufarm, Ltd.		(3,620	)		(15,907	)
Orica Ltd.		(17,119	)		(240,296	)
					(256,203	)
Canada
Teck Resources, Ltd.		(6,923	)		(89,623	)
Finland
Outokumpu OYJ		(24,476	)		(132,426	)
France
Kering		(2,237	)		(451,344	)
Germany
ElringKlinger AG		(11,748	)		(409,338	)
Hong Kong
Esprit Holdings Ltd.		(30,200	)		(33,988	)
Henderson Land Development Co., Ltd.		(4,000	)		(28,515	)
Hong Kong & China Gas Co., Ltd.		(205,700	)		(471,045	)
Hong Kong Exchanges and Clearing, Ltd.		(19,700	)		(453,398	)
Melco International Development, Ltd.		(141,000	)		(280,741	)
Shangri-La Asia, Ltd.		(4,000	)		(5,193	)
Swire Pacific, Ltd.		(6,000	)		(80,350	)
					(1,353,230	)
Ireland
Accenture PLC, Class A		(2,204	)		(185,202	)
Italy
Saipem SpA		(3,463	)		(31,155	)
Japan
Asahi Glass Co., Ltd.		(86,000	)		(457,519	)
Daihatsu Motor Co. Ltd.		(4,100	)		(57,172	)
Daikin Industries, Ltd.		(800	)		(55,669	)
Eisai Co., Ltd.		(31,800	)		(1,585,495	)
Honda Motor Co., Ltd.		(200	)		(6,035	)
Ibiden Co., Ltd.		(4,000	)		(60,133	)
The Japan Steel Works, Ltd.		(6,000	)		(24,001	)
JGC Corp.		(1,000	)		(20,338	)
Nabtesco Corp.		(900	)		(23,235	)

See Notes to Financial Statements.

20 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
Japan (concluded)
NGK Insulators, Ltd.		(17,000	)	$	(342,571	)
Nikon Corp.		(3,100	)		(39,334	)
Nippon Electric Glass Co. Ltd.		(70,000	)		(361,272	)
Nippon Paint Co., Ltd.		(15,500	)		(485,541	)
Nisshinbo Holdings, Inc.		(4,000	)		(44,949	)
Pigeon Corp.		(1,400	)		(87,414	)
Shimadzu Corp.		(9,000	)		(93,509	)
Shinko Electric Industries Co., Ltd.		(7,900	)		(55,335	)
Sony Corp.		(23,900	)		(562,154	)
Sumco Corp.		(2,200	)		(36,922	)
Sumitomo Chemical Co., Ltd.		(5,000	)		(19,671	)
Sumitomo Rubber Industries, Ltd.		(200	)		(3,110	)
Teijin Ltd.		(75,000	)		(223,413	)
Toray Industries, Inc.		(35,000	)		(298,133	)
Toyo Tire & Rubber Co., Ltd.		(37,200	)		(837,877	)
Toyota Boshoku Corp.		(500	)		(6,600	)
Toyota Tsusho Corp.		(1,400	)		(33,156	)
Ube Industries, Ltd.		(7,000	)		(10,484	)
Ushio, Inc.		(5,900	)		(68,352	)
					(5,899,394	)
Netherlands
SBM Offshore NV		(64,887	)		(707,940	)
Portugal
Jeronimo Martins SGPS SA		(14,823	)		(159,442	)
Singapore
DBS Group Holdings, Ltd.		(1,700	)		(24,785	)
Ezion Holdings, Ltd.		(20,600	)		(19,314	)
					(44,099	)
Sweden
SKF AB, -B Shares		(1,141	)		(26,895	)
Switzerland
Clariant AG		(548	)		(8,804	)
Holcim Ltd.		(765	)		(53,483	)
OC Oerlikon Corp. AG		(2,383	)		(27,106	)
Panalpina Welttransport Holding AG		(17	)		(2,082	)
SGS SA		(46	)		(87,257	)
Sulzer AG		(3,811	)		(403,510	)
The Swatch Group AG		(7	)		(2,797	)
					(585,039	)
United Kingdom
AVEVA Group PLC		(3,272	)		(64,709	)
CNH Industrial NV		(8,131	)		(61,899	)
Croda International PLC		(4,289	)		(171,287	)
HSBC Holdings PLC		(26,467	)		(242,152	)
Inmarsat PLC		(38,111	)		(477,542	)
Ophir Energy PLC		(105,388	)		(213,370	)
Smiths Group PLC		(3,569	)		(60,402	)
Spectris PLC		(4,065	)		(127,739	)
Vodafone Group PLC		(11,875	)		(41,758	)
					(1,460,858	)
United States
Aflac, Inc.		(1,515	)		(86,476	)
Amazon.com, Inc.		(806	)		(285,751	)
American Airlines Group, Inc.		(815	)		(40,000	)
American Tower Corp.		(360	)		(34,902	)
Amphenol Corp., Class A Class A		(2,648	)		(142,224	)
Arthur J Gallagher & Co.		(10,791	)		(479,444	)
Balchem Corp.		(7,421	)		(393,090	)
Brady Corp., Class A Class A		(2,466	)		(64,535	)

	Shares			Value
Reference Entity — Short
United States (concluded)
The Brink’s Co.		(1,232	)	$	(27,609	)
CACI International, Inc., Class A Class A		(4,741	)		(401,041	)
Cavium, Inc.		(2,308	)		(135,734	)
Cinemark Holdings, Inc.		(1,384	)		(51,443	)
The Coca-Cola Co.		(22,453	)		(924,390	)
Colfax Corp.		(2,668	)		(120,887	)
CommVault Systems, Inc.		(934	)		(40,704	)
Coty, Inc., Class A		(19,613	)		(373,039	)
Cray, Inc.		(3,679	)		(119,531	)
Crown Castle International Corp.		(3,162	)		(273,545	)
Cypress Semiconductor Corp.		(3,380	)		(49,787	)
Dealertrack Technologies, Inc.		(15,058	)		(605,332	)
Deere & Co.		(5,380	)		(458,322	)
Diebold, Inc.		(38,289	)		(1,194,617	)
Donaldson Co., Inc.		(5,403	)		(197,534	)
Dycom Industries, Inc.		(293	)		(9,027	)
Emerson Electric Co.		(3,225	)		(183,632	)
Essex Property Trust, Inc.		(839	)		(189,656	)
FARO Technologies, Inc.		(1,380	)		(76,383	)
First Cash Financial Services, Inc.		(4,109	)		(204,299	)
FleetCor Technologies, Inc.		(2,664	)		(374,292	)
Franklin Electric Co., Inc.		(7,805	)		(267,009	)
FTI Consulting, Inc.		(496	)		(20,172	)
General Motors Co.		(36,978	)		(1,206,222	)
Genesee & Wyoming, Inc., Class A		(1,778	)		(146,596	)
Gentex Corp.		(7,157	)		(119,450	)
Groupon, Inc.		(12,841	)		(91,942	)
Guess?, Inc.		(5,728	)		(107,572	)
HEICO Corp.		(1,324	)		(80,340	)
Hillenbrand, Inc.		(1,183	)		(37,158	)
Infinera Corp.		(19,607	)		(316,065	)
Ingredion, Inc.		(29	)		(2,339	)
Jabil Circuit, Inc.		(33,615	)		(692,805	)
JDS Uniphase Corp.		(14,177	)		(172,251	)
Juniper Networks, Inc.		(2,371	)		(53,893	)
KBR, Inc.		(6,388	)		(105,594	)
Marketo, Inc.		(4,535	)		(156,140	)
Mettler-Toledo International, Inc.		(1,319	)		(400,910	)
Microsemi Corp.		(902	)		(25,130	)
NetSuite, Inc.		(37	)		(3,642	)
Oracle Corp.		(3,712	)		(155,496	)
Palo Alto Networks, Inc.		(1,021	)		(129,044	)
PriceSmart, Inc.		(4,334	)		(354,435	)
Republic Services, Inc.		(2,745	)		(108,922	)
Rogers Corp.		(229	)		(16,914	)
Schweitzer-Mauduit International, Inc.		(4,074	)		(158,316	)
SEACOR Holdings, Inc.		(256	)		(18,419	)
Sotheby’s		(16,593	)		(706,032	)
The Spectranetics Corp.		(20,040	)		(655,508	)
SunEdison, Inc.		(36,443	)		(682,577	)
Tempur Sealy International, Inc.		(3,345	)		(184,075	)
Teradata Corp.		(27,080	)		(1,206,685	)
Ubiquiti Networks, Inc.		(244	)		(6,416	)
UTi Worldwide, Inc.		(2,347	)		(27,859	)
Varian Medical Systems, Inc.		(168	)		(15,550	)
The Western Union Co.		(40,671	)		(691,407	)
WR Grace & Co.		(482	)		(41,779	)
					(16,701,890	)
Total Reference Entity — Short					(28,494,078	)
Net Value of Reference Entity — Morgan Stanley & Co., Inc.				$	(12,012	)

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 21

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with UBS AG as of January 31, 2015, expiration date 3/19/15:

	Shares		Value
Reference Entity — Long
Brazil
AES Tiete SA, Preference Shares		65,800	$	406,093
AMBEV SA		8,600		56,505
Banco do Brasil SA		23,800		183,251
Bradespar SA, Preference Shares		142,900		618,306
Cia Energetica de Minas Gerais, ADR		53,365		240,676
Cia Energetica de Sao Paulo, Preference ‘B’ Shares		229,382		2,014,065
Cia Paranaense de Energia — ADR		8,542		99,087
Cia Paranaense de Energia, Preference B Shares		7,600		88,370
Cyrela Brazil Realty SA		100,900		406,496
EDP — Energias do Brasil SA		155,600		502,188
Embraer SA		10,100		89,360
Even Construtora e Incorporadora SA		407,600		657,750
Gerdau SA — ADR		234,967		810,636
Gerdau SA, Preference Shares		14,300		48,550
Itau Unibanco Holding SA, Preference Shares		13,900		170,431
JBS SA		253,400		1,080,368
Metalurgica Gerdau SA, Preference Shares		308,700		1,132,063
MRV Engenharia e Participacoes SA		53,100		136,745
Multiplus SA		145,760		1,887,696
Petroleo Brasileiro SA — ADR		165,086		1,015,279
Petroleo Brasileiro SA, Preference Shares		411,600		1,254,780
Telefonica Brasil SA — ADR		68,637		1,265,666
Vale SA, Preference Shares — ADR		50,194		314,214
Vale SA, Preference Shares		9,100		56,128
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		11,600		166,224
				14,700,927
Chile
Aguas Andinas SA, Class A		711,796		407,689
Empresas COPEC SA		4,241		47,994
				455,683
China
Agile Property Holdings Ltd.		148,000		90,154
Agricultural Bank of China Ltd., Class H		481,000		234,879
Anhui Conch Cement Co., Ltd., Class H		145,000		485,398
Anhui Expressway Co., Ltd., Class H		780,000		565,149
Bank of China Ltd., Class H		1,127,000		629,157
Beijing Capital International Airport Co. Ltd., Class H		1,486,000		1,411,912
China Cinda Asset Management Co., Ltd.		776,000		367,047
China Communications Services Corp. Ltd., Class H		132,000		59,441
China Construction Bank Corp., Class H		537,000		429,858
China Railway Group Ltd., Class H		26,000		18,979
China Shenhua Energy Co. Ltd., Class H		68,000		186,662
China Southern Airlines Co. Ltd., Class H		956,000		509,054
China Unicom Hong Kong Ltd.		266,000		398,148
Country Garden Holdings Co. Ltd.		338,000		134,678
CSPC Pharmaceutical Group Ltd.		650,000		548,337
Datang International Power Generation Co. Ltd., Class H		1,344,000		734,819
Dongfeng Motor Group Co. Ltd., Class H		344,000		497,507
Greentown China Holdings Ltd.		214,500		187,597
Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd., Class H, Class H		220,000		779,063
Longfor Properties Co. Ltd.		88,500		116,266
Lonking Holdings Ltd.		829,000		156,816
Metallurgical Corp. of China, Ltd.		3,596,000		1,109,759
Ping An Insurance Group Co. of China Ltd., Class H		284,000		3,010,097

	Shares		Value
Reference Entity — Long
China (concluded)
Shanghai Pharmaceuticals Holding Co., Ltd., Class H		673,300	$	1,457,978
Shenzhen Expressway Co., Ltd.		496,000		385,664
Sihuan Pharmaceutical Holdings Group Ltd.		191,000		122,957
Sino-Ocean Land Holdings Ltd.		238,500		152,511
Sinopharm Group Co. Ltd., Class H		74,000		269,438
Zhejiang Expressway Co. Ltd., Class H		2,522,000		3,209,415
				18,258,740
Hong Kong
China Mobile Ltd.		213,000		2,792,106
China Mobile, Ltd., ADR		30,570		1,996,832
China Power International Development, Ltd.		5,484,000		3,113,607
China Resources Cement Holdings Ltd.		2,940,000		1,744,728
China Travel International Inv HK		1,752,000		574,930
China Unicom Hong Kong, Ltd., ADR		51,128		764,364
Franshion Properties China Ltd.		1,536,000		450,970
GOME Electrical Appliances Holding Ltd.		6,461,000		889,374
Guangdong Investment Ltd.		170,000		228,197
Kingboard Chemical Holdings Ltd.		772,000		1,248,572
KWG Property Holding Ltd.		443,000		282,925
REXLot Holdings, Ltd.		5,200,000		406,078
Shanghai Industrial Holdings, Ltd.		362,000		1,069,474
Shenzhen Investment Ltd.		5,032,000		1,452,292
Shimao Property Holdings Ltd.		1,346,000		2,825,255
Sino Biopharmaceutical Ltd.		1,144,000		1,142,845
Skyworth Digital Holdings Ltd.		202,000		113,916
Yuexiu Property Co., Ltd.		2,374,000		461,392
				21,557,857
Hungary
MOL Hungarian Oil & Gas PLC		76,896		3,077,553
OTP Bank PLC		23,099		306,296
				3,383,849
Indonesia
Indo Tambangraya Megah Tbk PT		326,500		430,213
Telekomunikasi Indonesia Persero Tbk PT		4,415,300		980,185
Telekomunikasi Indonesia Persero Tbk PT, ADR		9,524		420,008
United Tractors Tbk PT		864,300		1,216,208
				3,046,614
Malaysia
British American Tobacco Malaysia Bhd		26,600		483,540
KNM Group BHD		1,246,400		203,599
YTL Power International Bhd		1,133,800		499,463
				1,186,602
Netherlands
Yandex NV		40,427		601,958
Philippines
Energy Development Corp.		537,400		103,931
Globe Telecom, Inc.		17,945		708,317
Jollibee Foods Corp.		90,570		475,495
Universal Robina Corp.		674,430		3,164,143
				4,451,886
Poland
Enea SA		107,904		479,420
Grupa Lotos SA		21,634		142,757
PGE SA		591,489		3,099,285
Polski Koncern Naftowy Orlen SA		65,997		973,757
Tauron Polska Energia SA		980,338		1,318,915
				6,014,134
Russia
Polymetal International PLC		134,490		1,211,099

See Notes to Financial Statements.

22 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares		Value
Reference Entity — Long
South Africa
AngloGold Ashanti Ltd.		7,088	$	85,970
AngloGold Ashanti, Ltd., ADR		53,480		662,082
Bidvest Group Ltd.		100,236		2,766,372
Clicks Group, Ltd.		72,953		565,832
FirstRand Ltd.		160,472		714,160
Liberty Holdings Ltd.		12,553		141,322
MMI Holdings Ltd.		259,013		696,855
Netcare Ltd.		354,032		1,175,328
Sanlam Ltd.		42,305		253,565
Sasol Ltd.		14,641		528,832
Sibanye Gold, Ltd.		592,874		1,603,069
Truworths International Ltd.		147,983		1,024,777
				10,218,164
South Korea
AfreecaTV Co., Ltd.		13,576		351,997
Amorepacific Corp.		266		641,063
Doosan Infracore Co., Ltd.		26,906		249,114
Hankook Tire Co., Ltd.		37,002		1,779,284
Hyundai Mobis		4,855		1,097,559
Hyundai Steel Co.		5,466		327,940
Kangwon Land, Inc.		42,875		1,264,354
Kia Motors Corp.		31,538		1,318,038
Korea Investment Holdings Co., Ltd.		5,884		277,289
Korea Line Corp.		6,438		128,984
KT Skylife Co., Ltd.		65,260		963,673
KT Submarine Co., Ltd.		38,729		179,722
LG Corp.		93,819		5,279,919
Lotte Food Co., Ltd.		593		335,358
LS Industrial Systems Co., Ltd.		12,538		691,054
Mando Corp.		8,107		466,791
Medy-Tox, Inc.		7,588		2,549,651
Mirae Asset Securities Co., Ltd.		5,742		241,639
Poongsan Corp.		12,150		251,207
POSCO		1,788		415,344
Posco ICT Co., Ltd.		1		5
SK Hynix, Inc.		15,371		663,959
SK Innovation Co., Ltd.		1,611		136,805
SK Networks Co., Ltd.		53,439		457,760
SK Telecom Co. Ltd.		227		59,489
SK Telecom Co., Ltd., ADR		91,876		2,641,435
SKC Co., Ltd.		12,432		341,402
Sungwoo Hitech Co., Ltd.		159,528		1,759,640
Tovis Co., Ltd.		4,036		72,583
Woori Bank		30,538		245,734
				25,188,792
Taiwan
Advanced Semiconductor Engineering, Inc.		858,000		1,077,407
Advanced Semiconductor Engineering, Inc. — ADR		97,054		641,527
Ardentec Corp.		203,000		172,404
Chicony Electronics Co., Ltd.		714,000		1,959,241
Chimei Materials Technology Corp.		585,200		590,973
China Steel Chemical Corp.		1,000		4,835
CTCI Corp.		688,000		1,087,167
Elan Microelectronics Corp.		564,000		881,975
Everlight Electronics Co., Ltd.		101,000		242,273
Far Eastern Department Stores Ltd.		653		557
Far Eastern New Century Corp.		331,000		333,140
Innolux Corp.		6,806,000		3,278,880
King Yuan Electronics Co., Ltd.		1,425,000		1,190,452
Novatek Microelectronics Corp.		56,000		308,029
President Chain Store Corp.		127,000		976,286
Sigurd Microelectronics Corp.		41,000		39,038
Sitronix Technology Corp.		1,027,000		3,362,485
Taiwan Cement Corp.		692,000		934,278

	Shares			Value
Reference Entity — Long
Taiwan (concluded)
Taiwan Paiho, Ltd.		51,000		$	86,222
Unity Opto Technology Co., Ltd.		73,000			67,590
Win Semiconductors Corp.		370,000			388,675
Wistron Corp.		3,559,000			3,244,704
Yuanta Financial Holding Co., Ltd.		9,171,950			4,400,036
					25,268,174
Thailand
PTT PCL		605,900			6,405,176
Turkey
Enka Insaat ve Sanayi AS		1,984,051			4,008,385
Haci Omer Sabanci Holding AS		705,458			2,971,613
KOC Holding AS		119,908			621,754
Koza Altin Isletmeleri AS		39,133			309,511
TAV Havalimanlari Holding AS		114,316			852,708
Tekfen Holding		95,602			223,887
Tofas Turk Otomobil Fabrikasi AS		34,093			226,952
Tupras Turkiye Petrol Rafinerileri AS		15,930			345,263
Turk Hava Yollari		286,606			1,093,806
Turk Telekomunikasyon AS		450,427			1,347,606
					12,001,485
United Kingdom
British American Tobacco PLC		31,403			1,773,533
Old Mutual PLC		247,856			776,888
					2,550,421
United States
Genpact Ltd.		36,100			724,527
Total Reference Entity — Long					157,226,088
Reference Entity — Short
Brazil
Aliansce Shopping Centers SA		(6,800	)		(40,801	)
Cia Hering		(48,900	)		(331,498	)
Cia Siderurgica Nacional SA, ADR		(188,843	)		(283,264	)
Duratex SA		(123,960	)		(343,249	)
Equatorial Energia SA		(85,600	)		(797,540	)
Oi SA, ADR		(85,736	)		(168,900	)
Smiles SA		(31,700	)		(499,143	)
					(2,464,395	)
Chile
Latam Airlines Group SA — ADR		(243,643	)		(2,526,578	)
China
AAC Technologies Holdings, Inc.		(232,000	)		(1,482,645	)
Airtac International Group		(12,000	)		(104,189	)
Aluminum Corp. of China Ltd. — ADR		(22,644	)		(251,801	)
Aluminum Corp. of China Ltd., Class H		(1,858,000	)		(838,831	)
AviChina Industry & Technology Co., Ltd., Class H		(376,000	)		(242,947	)
China Coal Energy Co., Ltd.		(6,226,000	)		(3,429,894	)
China COSCO Holdings Co., Ltd., Class H		(11,645,000	)		(5,756,038	)
China Eastern Airlines Corp., Ltd., Class H, Class H		(954,000	)		(483,827	)
China Longyuan Power Group Corp., Class H		(1,385,000	)		(1,486,494	)
China Minsheng Banking Corp., Ltd.		(61,500	)		(74,652	)
China Petroleum & Chemical Corp.		(296,000	)		(234,206	)
China Shanshui Cement Group, Ltd.		(2,840,000	)		(1,247,203	)
China Shipping Container Lines Co., Ltd., Class H		(13,329,000	)		(4,182,981	)
China Shipping Development Co., Ltd., Class H		(1,058,000	)		(752,769	)
China Tian Lun Gas Holdings, Ltd.		(52,500	)		(55,193	)
CNOOC, Ltd.		(465,000	)		(616,992	)
CNOOC, Ltd. — ADR		(4,946	)		(658,560	)
Dongfang Electric Corp., Ltd., Class H		(2,473,400	)		(5,424,690	)
ENN Energy Holdings Ltd.		(38,000	)		(224,628	)

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 23

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
China (concluded)
First Tractor Co., Ltd., Class H, Class H		(572,000	)	$	(420,393	)
Guangshen Railway Co., Ltd.		(214,000	)		(110,673	)
Guangzhou Shipyard International Co., Ltd.		(432,000	)		(1,326,264	)
Haitian International Holdings, Ltd.		(13,000	)		(25,204	)
Hengan International Group Co., Ltd.		(11,500	)		(136,506	)
Hilong Holding, Ltd.		(799,000	)		(246,671	)
Kingsoft Corp., Ltd.		(221,000	)		(526,657	)
Lenovo Group, Ltd.		(54,000	)		(69,530	)
Maanshan Iron & Steel Co., Ltd., Class H		(1,158,000	)		(314,572	)
PetroChina Co., Ltd.		(358,000	)		(388,753	)
PetroChina Co., Ltd., ADR		(14,830	)		(1,610,093	)
Semiconductor Manufacturing International Corp.		(3,845,820	)		(333,351	)
Shanghai Electric Group Co., Ltd.		(336,000	)		(206,020	)
Shui On Land Ltd.		(19,000	)		(4,277	)
SINA Corp.		(14,436	)		(522,872	)
Sinopec Shanghai Petrochemical Co., Ltd., Class H		(24,000	)		(6,946	)
SOHO China, Ltd.		(41,500	)		(28,821	)
Sohu.com, Inc.		(562	)		(31,551	)
Sunny Optical Technology Group Co., Ltd.		(1,098,000	)		(1,665,522	)
TCL Communication Technology Holdings, Ltd.		(82,000	)		(72,232	)
Tingyi Cayman Islands Holding Corp.		(416,000	)		(1,024,658	)
Uni-President China Holdings, Ltd.		(1,726,000	)		(1,491,712	)
Want Want China Holdings, Ltd.		(124,000	)		(148,492	)
Weichai Power Co., Ltd., Class H		(41,800	)		(165,365	)
Yanzhou Coal Mining Co., Ltd., Class H		(2,146,000	)		(1,706,590	)
Zijin Mining Group Co., Ltd., Class H		(464,000	)		(141,293	)
					(40,273,558	)
Colombia
Bancolombia SA, ADR		(10,384	)		(480,468	)
Egypt
Global Telecom Holding — GDR		(271,353	)		(782,762	)
Hong Kong
Alibaba Pictures Group, Ltd.		(4,280,000	)		(844,033	)
Beijing Enterprises Water Group Ltd.		(5,576,000	)		(3,660,807	)
Brilliance China Automotive Holdings Ltd.		(28,000	)		(51,360	)
China Agri-Industries Holdings Ltd.		(149,000	)		(60,183	)
China Everbright International, Ltd.		(436,000	)		(643,285	)
China Gas Holdings, Ltd.		(36,000	)		(55,640	)
China Mengniu Dairy Co., Ltd.		(13,000	)		(59,235	)
China Resources Enterprise, Ltd.		(4,000	)		(8,758	)
Kunlun Energy Co., Ltd.		(974,000	)		(1,014,141	)
Lee & Man Paper Manufacturing, Ltd.		(1,191,000	)		(625,323	)
Towngas China Co., Ltd.		(154,000	)		(134,489	)
					(7,157,254	)
Indonesia
Charoen Pokphand Indonesia Tbk PT		(48,800	)		(15,157	)
Matahari Department Store Tbk PT		(285,700	)		(348,932	)
Tower Bersama Infrastructure Tbk PT		(212,600	)		(159,189	)
					(523,278	)
Malaysia
Dialog Group BHD		(3,960,800	)		(1,764,232	)
Malaysia Airports Holdings BHD		(60	)		(118	)
Sapurakencana Petroleum Bhd		(3,806,300	)		(2,797,866	)
					(4,562,216	)
Malta
Brait SE		(259,137	)		(1,711,682	)
Mexico
Cemex SAB de CV — ADR		(154,436	)		(1,372,936	)
Grupo Televisa SAB, ADR		(35,031	)		(1,142,361	)
Minera Frisco SAB de CV, Series A-1		(560,700	)		(734,657	)
					(3,249,954	)

	Shares			Value
Reference Entity — Short
Poland
Getin Noble Bank SA		(190,323	)	$	(102,201	)
LPP SA		(118	)		(238,669	)
					(340,870	)
South Africa
Aspen Pharmacare Holdings, Ltd.		(15,527	)		(581,399	)
Discovery Holdings Ltd.		(64,855	)		(638,778	)
Nampak Ltd.		(96,504	)		(351,809	)
Remgro Ltd.		(3,371	)		(78,004	)
RMB Holdings, Ltd.		(268,909	)		(1,518,823	)
Tiger Brands, Ltd.		(272	)		(9,173	)
					(3,177,986	)
South Korea
Chabiotech Co., Ltd.		(5,289	)		(67,871	)
CJ Korea Express Co., Ltd.		(16,529	)		(2,894,791	)
Daewoo International Corp.		(4,244	)		(106,109	)
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		(36,819	)		(649,209	)
Doosan Corp.		(14,784	)		(1,398,491	)
Doosan Heavy Industries & Construction Co., Ltd.		(42,481	)		(901,313	)
Eo Technics Co., Ltd.		(1,996	)		(233,598	)
Hanjin Transportation Co., Ltd.		(3,401	)		(196,927	)
Hanmi Pharm Co., Ltd.		(1,492	)		(132,921	)
Hanwha Chemical Corp.		(3,595	)		(40,223	)
Hotel Shilla Co., Ltd.		(32,397	)		(3,006,068	)
Hyundai Glovis Co., Ltd.		(1,305	)		(290,662	)
Hyundai Heavy Industries Co., Ltd.		(15,219	)		(1,559,519	)
Hyundai Marine & Fire Insurance Co., Ltd.		(40,361	)		(960,522	)
Hyundai Merchant Marine Co., Ltd.		(8,830	)		(24,061	)
Hyundai Merchant Marine Co., Ltd.		(57,487	)		(538,809	)
Kolao Holdings		(113,099	)		(1,743,678	)
KONA I Co., Ltd.		(1	)		(31	)
NHN Entertainment Corp.		(14,106	)		(957,227	)
OCI Co., Ltd.		(9,159	)		(649,348	)
Orion Corp/Republic of Korea		(614	)		(585,897	)
S-Oil Corp.		(57,303	)		(3,152,072	)
Samsung Electro-Mechanics Co., Ltd.		(71,897	)		(4,375,728	)
Samsung Fine Chemicals Co., Ltd.		(4	)		(125	)
Samsung Life Insurance Co., Ltd.		(4,148	)		(426,058	)
Samsung SDI Co., Ltd.		(50,789	)		(5,926,606	)
Seegene, Inc.		(2,149	)		(64,055	)
					(30,881,919	)
Taiwan
Eclat Textile Co., Ltd.		(360	)		(3,727	)
Evergreen Marine Corp. Taiwan Ltd.		(1,213,000	)		(864,259	)
First Financial Holding Co., Ltd.		(219	)		(128	)
Formosa Chemicals & Fibre Corp.		(175,000	)		(374,474	)
Gigastorage Corp.		(26,000	)		(20,993	)
Hiwin Technologies Corp.		(99,710	)		(820,328	)
Hotai Motor Co., Ltd.		(6,000	)		(86,213	)
Taiwan Glass Industry Corp.		(235,000	)		(170,792	)
Unimicron Technology Corp.		(334,000	)		(228,735	)
Yang Ming Marine Transport Corp.		(1,745,000	)		(939,669	)
Yulon Motor Co., Ltd.		(227,000	)		(331,504	)
					(3,840,822	)
Thailand
CP ALL PCL		(10,046,900	)		(12,738,966	)
Hemaraj Land and Development PCL		(820,200	)		(111,265	)
Home Product Center PCL		(5,962,001	)		(1,484,580	)
Krung Thai Bank PCL		(25	)		(17	)
True Corp. PCL		(15,871,100	)		(6,594,774	)
					(20,929,602	)
Turkey
Turkcell Iletisim Hizmetleri AS—ADR		(110,947	)		(1,602,075	)
Total Reference Entity — Short					(124,505,419	)
Net Value of Reference Entity — UBS AG				$	32,720,669

See Notes to Financial Statements.

24 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

The following table represents the individual long and short positions and related values of equity securities underlying the total return swap with UBS AG as of January 31, 2015, expiration date 3/19/15:

	Shares		Value
Reference Entity — Long
Australia
Ramsay Health Care Ltd.		1,243	$	57,201
Belgium
Fagron		90		3,675
Nyrstar NV		5,574		20,968
				24,643
Canada
Dominion Diamond Corp.		701		11,646
Methanex Corp.		10,276		454,159
Parex Resources, Inc.		18,709		101,297
				567,102
Denmark
Novo Nordisk A/S, Class B		16,916		753,957
Vestas Wind Systems A/S		1,867		72,540
				826,497
France
BioMerieux		359		39,200
Ingenico		799		83,529
Ipsen SA		1,470		74,815
Valeo SA		423		59,644
				257,188
Germany
Duerr AG		6,522		593,575
Gerresheimer AG		74		4,035
Kloeckner & Co. SE		33,047		340,497
Merck KGaA		1,404		140,283
SAP AG		9,755		636,687
				1,715,077
Hong Kong
Dah Sing Financial Holdings, Ltd.		5,200		30,041
Hang Lung Properties Ltd.		10,000		29,403
Kerry Properties Ltd.		13,000		45,936
Luk Fook Holdings International, Ltd.		4,000		14,844
Orient Overseas International Ltd.		3,500		22,832
Wheelock & Co. Ltd.		1,000		5,658
				148,714
Iran
Smurfit Kappa Group PLC		3,031		74,518
Ireland
Ingersoll-Rand PLC		572		37,981
Kerry Group PLC, Class A		224		16,234
				54,215
Italy
Ansaldo STS SpA		22,406		225,157
Parmalat SpA		7,128		20,217
Recordati SpA		16,967		280,409
				525,783
Japan
Alps Electric Co. Ltd.		900		18,736
Casio Computer Co. Ltd.		4,000		62,619
Citizen Holdings Co. Ltd.		4,800		38,314
Daifuku Co. Ltd.		11,300		129,453
Dainippon Screen Manufacturing Co., Ltd.		54,000		320,671
Disco Corp.		4,400		403,099
Enplas Corp.		2,900		103,486
Fujitsu General Ltd.		14,000		137,323
Hitachi Capital Corp.		1,400		27,525

	Shares		Value
Reference Entity — Long
Japan (concluded)
Hitachi Maxell, Ltd.		700	$	11,880
Hitachi Metals Ltd.		2,000		32,591
Keihin Corp.		19,300		307,630
Mazda Motor Corp.		15,700		322,485
Mitsubishi Materials Corp.		69,000		217,582
Murata Manufacturing Co. Ltd.		2,800		302,272
Nifco, Inc.		6,500		223,906
Oki Electric Industry Co. Ltd.		69,000		140,938
Omron Corp.		4,700		187,900
OSG Corp.		11,000		202,530
Shimano, Inc.		900		118,974
Square Enix Holdings Co., Ltd.		2,400		52,690
Tadano Ltd.		20,000		240,716
Takata Corp.		36,200		422,209
Topcon Corp.		500		9,908
TS Tech Co., Ltd.		4,900		123,455
				4,158,892
Netherlands
Arcadis NV		11,970		362,276
Heineken NV		2,249		167,839
NXP Semiconductor NV		3,784		300,222
				830,337
Singapore
ComfortDelGro Corp. Ltd.		272,000		576,777
Indofood Agri Resources, Ltd.		57,200		29,905
Singapore Airlines Ltd.		29,400		274,611
Venture Corp. Ltd.		3,100		18,616
Wing Tai Holdings, Ltd.		53,200		71,894
				971,803
Spain
Gamesa Corp. Tecnologica SA		10,354		102,367
Gas Natural SDG SA		20,763		487,386
Inmobiliaria Colonial SA		17,303		11,725
				601,478
Sweden
Telefonaktiebolaget LM Ericsson, Class B		12,167		147,516
Switzerland
Garmin Ltd.		40		2,094
Kuoni Reisen Holding AG		697		233,801
Straumann Holding AG, Registered Shares		12		2,711
				238,606
United Kingdom
Inchcape PLC		18,796		196,341
Pace PLC		120,175		603,110
				799,451
United States
Akamai Technologies, Inc.		16,889		982,180
AmTrust Financial Services, Inc.		4,390		222,222
Aruba Networks, Inc.		20,015		331,849
Aspen Technology, Inc.		6,286		222,179
The Boeing Co.		3,743		544,120
Cabot Corp.		14,663		621,858
Cabot Microelectronics Corp.		4,948		244,481
Calpine Corp.		15,603		325,791
Cameron International Corp.		7,567		338,850
Caterpillar, Inc.		3,490		279,095
CBRE Group, Inc., Class A		95		3,072
Century Aluminum Co.		24,072		556,304
Cirrus Logic, Inc.		21,325		565,112
Citrix Systems, Inc.		5,573		330,256
Columbia Sportswear Co.		3,166		134,555
Cytec Industries, Inc.		8,555		410,554

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 25

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares			Value
Reference Entity — Long
United States (concluded)
The Dow Chemical Co.		18,404		$	831,125
Eastman Chemical Co.		5,597			396,771
The Estee Lauder Cos., Inc., Class A		739			52,166
Foot Locker, Inc.		4,253			226,345
Hasbro, Inc.		14,300			785,356
HCA Holdings, Inc.		3,395			240,366
Houghton Mifflin Harcourt Co.		1,836			36,132
Hyster-Yale Materials Handling, Inc.		1,770			110,891
IAC/InterActiveCorp		2,252			137,259
Iconix Brand Group, Inc.		15,611			518,910
Ingram Micro, Inc., Class A		18,986			478,067
The Interpublic Group of Cos., Inc.		35,205			701,988
Invesco Ltd.		6,406			235,292
Jones Lang LaSalle, Inc.		6,989			1,027,942
Lear Corp.		1,427			143,199
Liberty TripAdvisor Holdings, Inc., Series A		2,080			49,795
Linear Technology Corp.		4,382			196,927
LogMeIn, Inc.		8,254			392,478
Manpowergroup, Inc.		37			2,697
Mead Johnson Nutrition Co.		200			19,698
Micron Technology, Inc.		9,281			271,608
Moog, Inc., Class A		800			56,240
NRG Energy, Inc.		578			14,253
Penske Automotive Group, Inc.		10,709			517,780
Progress Software Corp.		21,260			532,563
Rovi Corp.		6,983			161,377
Sealed Air Corp.		2,497			101,129
Skyworks Solutions, Inc.		130			10,797
Spectrum Brands Holdings, Inc.		659			59,099
SPX Corp.		1,583			132,291
Tessera Technologies, Inc.		83			3,078
The Timken Co.		8,526			324,073
Tyson Foods, Inc., Class A		13,232			516,577
Unisys Corp.		474			10,395
VF Corp.		1,342			93,095
WABCO Holdings, Inc.		1,863			177,302
Western Digital Corp.		3,153			306,566
World Fuel Services Corp.		11,156			546,309
Xilinx, Inc.		2,805			108,203
Zebra Technologies Corp., Class A		2,363			197,216
					16,835,833
Total Reference Entity — Long					28,834,854
Reference Entity —Short
Australia
Orica Ltd.		(11,839	)		(166,182	)
Whitehaven Coal Ltd.		(2,172	)		(2,074	)
					(168,256	)
Canada
New Gold, Inc.		(16,998	)		(74,509	)
Teck Resources, Ltd.		(13	)		(168	)
					(74,677	)
Denmark
FLSmidth & Co. A/S		(9,484	)		(400,701	)
Finland
Outokumpu OYJ		(46,484	)		(251,498	)
Outotec OYJ		(23,835	)		(138,021	)
					(389,519	)
France
Kering		(2,939	)		(592,982	)
Peugeot SA		(1,636	)		(4,173	)
					(597,155	)

	Shares			Value
Reference Entity — Short
Germany
Dialog Semiconductor PLC		(2,264	)	$	(86,586	)
ElringKlinger AG		(7,106	)		(247,596	)
Puma SE		(94	)		(17,891	)
					(352,073	)
Hong Kong
Esprit Holdings Ltd.		(200	)		(225	)
Hong Kong & China Gas Co., Ltd.		(218,900	)		(501,273	)
Hong Kong Exchanges and Clearing, Ltd.		(100	)		(2,301	)
Melco International Development, Ltd.		(16,000	)		(31,857	)
Swire Pacific, Ltd.		(500	)		(6,696	)
					(542,352	)
Ireland
Accenture PLC, Class A Class A		(9,885	)		(830,637	)
Italy
Saipem SpA		(5,457	)		(49,095	)
Japan
Asahi Glass Co., Ltd.		(23,000	)		(122,360	)
Daihatsu Motor Co. Ltd.		(5,400	)		(75,300	)
Ibiden Co., Ltd.		(1,700	)		(25,557	)
The Japan Steel Works, Ltd.		(26,000	)		(104,005	)
Nabtesco Corp.		(200	)		(5,163	)
NGK Insulators, Ltd.		(6,000	)		(120,907	)
Nikon Corp.		(4,700	)		(59,635	)
Nippon Electric Glass Co. Ltd.		(77,000	)		(397,399	)
Nippon Paint Co., Ltd.		(25,200	)		(789,396	)
Pigeon Corp.		(1,000	)		(62,438	)
Sharp Corp.		(49,000	)		(95,918	)
Shimadzu Corp.		(7,000	)		(72,729	)
Shinko Electric Industries Co., Ltd.		(7,800	)		(54,635	)
Sony Corp.		(18,400	)		(432,788	)
Sumco Corp.		(66,000	)		(1,107,666	)
Sumitomo Chemical Co., Ltd.		(5,000	)		(19,671	)
Sumitomo Rubber Industries, Ltd.		(700	)		(10,885	)
Teijin Ltd.		(32,000	)		(95,323	)
Toray Industries, Inc.		(69,000	)		(587,748	)
Toyo Tire & Rubber Co., Ltd.		(24,800	)		(558,585	)
Toyota Tsusho Corp.		(1,100	)		(26,051	)
Ube Industries, Ltd.		(8,000	)		(11,981	)
Ushio, Inc.		(700	)		(8,110	)
					(4,844,250	)
Netherlands
OCI		(1,017	)		(35,807	)
SBM Offshore NV		(10,596	)		(115,606	)
					(151,413	)
Norway
Opera Software ASA		(18,378	)		(243,460	)
Portugal
Jeronimo Martins SGPS SA		(12,024	)		(129,334	)
Singapore
DBS Group Holdings, Ltd.		(1,200	)		(17,496	)
Sembcorp Marine, Ltd.		(6,000	)		(13,277	)
United Overseas Bank, Ltd.		(4,000	)		(68,403	)
					(99,176	)
Sweden
Elekta AB, -B Shares		(22,736	)		(244,006	)
Switzerland
Holcim Ltd.		(1,300	)		(91,249	)
OC Oerlikon Corp. AG		(537	)		(6,108	)
Sulzer AG		(1,521	)		(161,044	)
The Swatch Group AG		(513	)		(204,027	)
					(462,428	)

See Notes to Financial Statements.

26 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
United Kingdom
AVEVA Group PLC		(2,938	)	$	(58,103	)
CNH Industrial NV		(17,521	)		(133,383	)
Croda International PLC		(1,368	)		(54,633	)
Inmarsat PLC		(14,081	)		(176,439	)
Ophir Energy PLC		(124,313	)		(251,685	)
Spectris PLC		(4,181	)		(131,385	)
Vodafone Group PLC		(83,511	)		(293,665	)
					(1,099,293	)
United States
Advanced Micro Devices, Inc.		(12,913	)		(33,186	)
Aflac, Inc.		(3,350	)		(191,218	)
Amazon.com, Inc.		(3,321	)		(1,177,394	)
American Tower Corp.		(647	)		(62,727	)
Arthur J Gallagher & Co.		(13,336	)		(592,518	)
Atmel Corp.		(778	)		(6,481	)
Balchem Corp.		(6,516	)		(345,153	)
Brady Corp., Class A Class A		(286	)		(7,485	)
The Brink’s Co.		(245	)		(5,490	)
CACI International, Inc., Class A Class A		(1,910	)		(161,567	)
Cavium, Inc.		(868	)		(51,047	)
Cinemark Holdings, Inc.		(1,120	)		(41,630	)
Cliffs Natural Resources, Inc.		(10,910	)		(70,042	)
The Coca-Cola Co.		(15,920	)		(655,426	)
Colfax Corp.		(1,360	)		(61,622	)
CommVault Systems, Inc.		(1,510	)		(65,806	)
Coty, Inc., Class A		(16,427	)		(312,442	)
Cray, Inc.		(1,201	)		(39,021	)
Cree, Inc.		(5,581	)		(197,344	)
Crown Castle International Corp.		(4,932	)		(426,667	)
Cypress Semiconductor Corp.		(3,563	)		(52,483	)
Dealertrack Technologies, Inc.		(14,563	)		(585,433	)
Deere & Co.		(13,479	)		(1,148,276	)
Diebold, Inc.		(4,656	)		(145,267	)
Donaldson Co., Inc.		(1,874	)		(68,513	)
Dycom Industries, Inc.		(402	)		(12,386	)
Emerson Electric Co.		(3,110	)		(177,083	)
Essex Property Trust, Inc.		(5,997	)		(1,355,622	)
FARO Technologies, Inc.		(835	)		(46,217	)
Finisar Corp.		(2,150	)		(39,001	)
FireEye, Inc.		(1,280	)		(43,277	)

	Shares			Value
Reference Entity — Short
United States (concluded)
First Cash Financial Services, Inc.		(2,893	)	$	(143,840	)
FleetCor Technologies, Inc.		(1,090	)		(153,145	)
Franklin Electric Co., Inc.		(7,591	)		(259,688	)
General Mills, Inc.		(1,749	)		(91,788	)
Genesee & Wyoming, Inc., Class A		(1,608	)		(132,580	)
Gentex Corp.		(3,522	)		(58,782	)
Groupon, Inc.		(7,197	)		(51,531	)
Guess?, Inc.		(2,070	)		(38,875	)
HEICO Corp.		(957	)		(58,071	)
Hill-Rom Holdings, Inc.		(5,474	)		(261,438	)
Ingredion, Inc.		(269	)		(21,692	)
IPG Photonics Corp.		(10,378	)		(774,614	)
Jabil Circuit, Inc.		(20,517	)		(422,855	)
KBR, Inc.		(3,922	)		(64,831	)
Marketo, Inc.		(1,184	)		(40,765	)
McDermott International, Inc.		(234,215	)		(526,984	)
Mettler-Toledo International, Inc.		(3,634	)		(1,104,554	)
Microsemi Corp.		(206	)		(5,739	)
NetSuite, Inc.		(872	)		(85,831	)
Oracle Corp.		(4,946	)		(207,188	)
Peabody Energy Corp.		(25,952	)		(161,681	)
PriceSmart, Inc.		(3,477	)		(284,349	)
Republic Services, Inc.		(1,158	)		(45,949	)
Schweitzer-Mauduit International, Inc.		(4,730	)		(183,808	)
SEACOR Holdings, Inc.		(442	)		(31,802	)
Sotheby’s		(8,817	)		(375,163	)
The Spectranetics Corp.		(16,415	)		(536,935	)
SunEdison, Inc.		(39,399	)		(737,943	)
TAL International Group, Inc.		(1,228	)		(49,918	)
Tempur Sealy International, Inc.		(8,485	)		(466,930	)
Teradata Corp.		(428	)		(19,072	)
Ubiquiti Networks, Inc.		(3,418	)		(89,876	)
Varian Medical Systems, Inc.		(111	)		(10,274	)
Veeco Instruments, Inc.		(13,176	)		(384,344	)
The Western Union Co.		(41,024	)		(697,408	)
WR Grace & Co.		(549	)		(47,587	)
XPO Logistics, Inc.		(41,098	)		(1,511,995	)
					(18,317,649	)
Total Reference Entity — Short					(28,995,474	)
Net Value of Reference Entity — UBS AG				$	(160,620	)

• Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. 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. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

• Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the 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)

• Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own a`ssumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 27

Schedule of Investments (concluded) BlackRock Emerging Markets Long/Short Equity Fund

As of January 31, 2015, the following table summarizes the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Short-Term Securities	$	506,787,730		—		—	$	506,787,730
	Level 1		Level 2		Level 3		Total
Derivative Financial Instruments1
Assets:
Equity Contracts		—	$	10,913,772		—	$	10,913,772

¹  Derivative financial instruments are swaps, which are valued at the unrealized appreciation/depreciation on the instrument.

The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of January 31, 2015, cash received as collateral for OTC derivatives of $ 11,485,093 is categorized as Level 2 within the disclosure hierarchy.

During the six months ended January 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.

28 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments January 31, 2015 (Unaudited) BlackRock Global Long/Short Equity Fund
(Percentages shown are based on Net Assets)

Common Stocks	Shares		Value
Consumer Finance — 0.1%
LendingClub Corp. (a)		98,316	$	1,753,122
Preferred Securities (a)
Preferred Stocks
Household Durables — 0.1%
AliphCo., 0.00%		88,751		982,216
Internet Software & Services — 0.1%
Uber Technologies, Inc., Series E, 0.00%		45,020		1,499,954
Software — 0.1%
Apigee Corp., Series H, 0.00%		162,335		506,485
Palantir Technologies, Inc.,		326,264		2,469,819
				2,976,304

Common Stocks	Shares		Value
Total Preferred Stocks — 0.3%			$	5,458,474
Total Long-Term Investments (Cost — $5,972,355) — 0.4%				7,211,596
Short-Term Securities
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.07% (b)(c)		1,684,084,362		1,684,084,362
Total Short-Term Securities
(Cost — $1,684,084,362) — 98.7%				1,684,084,362
Total Investments
(Cost — $1,690,056,717) — 99.1%				1,691,295,958
Other Assets Less Liabilities — 0.9%				15,353,956
Net Assets — 100.0%			$	1,706,649,914

Notes to Schedule of Investments

(a)	Restricted security as to resale. As of report date, the Fund held restricted securities with a current value of $7,211,596 and an original cost of $5,972,355 which were 0.4% and 0.4%, respectively, of its net assets.
(b)	During the six months ended January 31, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at July 31, 2014	Net Activity	Shares Held at January 31, 2015	Income
BlackRock Liquidity Funds, TempFund, Institutional Class	1,390,678,750	293,405,612	1,684,084,362	$419,111

(c)	Represents current yield as of report date.
•	As of January 31, 2015, total return swaps outstanding were as follows:1

Reference Entity	Counterparty	Expiration Dates	Notional Amount			Unrealized Appreciation (Depreciation)			Net Value of Reference Entities
Basket of Equity Securities Long/Short:	Bank of America N.A.	2/23/15	$	(45,994,501	)	$	(1,626,010	)2	$	(46,283,748	)
	Deutsche Bank AG	2/16/15 — 2/02/16	$	48,639,163			615,096	3		47,215,112
	Goldman Sachs & Co.	3/26/15 — 8/04/16	$	(67,669,229	)		34,847,188	4		(44,832,941	)
	UBS AG	2/12/15	$	50,338,707			5,312,473	5		56,288,398
Total						$	39,148,747		$	12,386,821

¹ The Fund receives or pays the total return on a portfolio of long and short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark, plus or minus a spread in a range of 20-467 basis points. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. The following are the specified benchmarks used in determining the variable rate of interest:

Association of Banks in Singapore Swap Offered Rate	IntercontinentalExchange LIBOR:
Australian Bank Bill Short Term Rates 1 Day Reference Rate	CHF 1 Week; CHF Spot Next
Bank of Canada Overnight Repo Rate	EUR 1 Month; EUR 1 Week; EUR Overnight
Canada Bankers Acceptances 1 Month	GBP 1 Week; GBP Overnight
Copenhagen Interbank Offered Rates 1 Week	JPY 1 Week; JPY Spot Next
Danish Krone Overnight Deposit	USD 1 Month; USD Spot Next
Federal Funds Rate Open	Nigeria Interbank Offered Rate 1 Week
Garban Intercapital Federal Funds Rate	Norwegian Krone Overnight Deposit
Hong Kong Dollar HIBOR Fixings:	Stockholm Interbank Offered Rate
1 Month; 2 Week	Stockholm Interbank Offered Rate Overnight
	Tel Aviv Interbank Offered Rate Overnight

² Amount includes $ (1,336,763) of net dividends and financing fees.

³ Amount includes $ 2,039,147 of net dividends and financing fees.

⁴ Amount includes $ 12,010,900 of net dividends and financing fees.

⁵ Amount includes $ (637,218) of net dividends and financing fees.

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 29

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Bank of America N.A. as of January 31, 2015, expiration date 2/23/15:

	Shares		Value
Reference Entity — Long
Bermuda
Assured Guaranty Ltd.		109,257	$	2,668,056
Netherlands
AVG Technologies NV		25,732		508,979
Core Laboratories NV		1,235		114,546
NXP Semiconductor NV		17,731		1,406,778
				2,030,303
Singapore
Flextronics International Ltd.		164,219		1,826,115
United Kingdom
Liberty Global PLC		363		16,549
United States
AbbVie, Inc.		24,787		1,495,895
Activision Blizzard, Inc.		2,166		45,259
Acxiom Corp.		97,123		1,767,639
Air Lease Corp.		24,174		844,640
Alcoa, Inc.		177,868		2,783,634
Ally Financial, Inc.		181,141		3,389,148
Amdocs Ltd.		54,258		2,614,150
Amkor Technology, Inc.		6,053		38,437
AmTrust Financial Services, Inc.		96,846		4,902,345
ANN, Inc.		5,287		175,000
Apartment Investment & Management Co., Class A		81,913		3,265,052
ArcBest Corp.		31,745		1,182,819
Aruba Networks, Inc.		63,121		1,046,546
Aspen Technology, Inc.		36,998		1,307,694
Assurant, Inc.		14,195		901,524
Axalta Coating Systems, Ltd.		10,863		278,853
The Babcock & Wilcox Co.		209,090		5,693,521
Berry Plastics Group, Inc.		197,632		6,683,914
Best Buy Co., Inc.		32,121		1,130,659
Blackstone Mortgage Trust, Inc., Class A		44,622		1,302,962
The Boeing Co.		49,909		7,255,271
Boise Cascade Co.		84,092		3,400,680
Bonanza Creek Energy, Inc.		4,859		126,723
Booz Allen Hamilton Holding Corp.		87,413		2,544,592
BP Prudhoe Bay Royalty Trust		11,080		861,470
Brinker International, Inc.		92,151		5,384,383
Brixmor Property Group, Inc.		288,035		7,805,748
Cabot Corp.		2,945		124,897
Cabot Microelectronics Corp.		35,738		1,765,815
Cal-Maine Foods, Inc.		4,492		157,445
Calpine Corp.		513,111		10,713,758
Cameron International Corp.		19,760		884,853
Capstead Mortgage Corp.		9,429		113,337
Cardinal Health, Inc.		45,026		3,745,713
Catalent, Inc.		125,683		3,471,364
Caterpillar, Inc.		27,155		2,171,585
CBL & Associates Properties, Inc.		92,045		1,897,968
CBS Corp., Class B		75,032		4,112,504
Celanese Corp., Series A		9,299		499,914
CenterPoint Energy, Inc.		336,975		7,780,753
Chatham Lodging Trust		13,555		421,967
Chesapeake Lodging Trust		1,128		41,420
Cirrus Logic, Inc.		60,593		1,605,715
CIT Group, Inc.		15,094		661,419
Citrix Systems, Inc.		1,142		67,675
Clearwater Paper Corp.		2,912		215,546
Coca-Cola Enterprises, Inc.		394,649		16,614,723
Comcast Corp., Special Class A		249		13,172
Compass Minerals International, Inc.		35,488		3,101,651

	Shares		Value
Reference Entity — Long
United States (continued)
Computer Sciences Corp.		16,075	$	975,431
Core-Mark Holding Co., Inc.		5,500		366,740
Crane Co.		97,651		5,951,828
Cytec Industries, Inc.		39,309		1,886,439
DDR Corp.		140,099		2,745,940
Delek U.S. Holdings, Inc.		51,723		1,595,655
Diodes, Inc.		40,102		1,059,896
DIRECTV		109,469		9,335,516
Dover Corp.		13,997		980,350
The Dow Chemical Co.		12,405		560,210
DST Systems, Inc.		2,180		210,806
DuPont Fabros Technology, Inc.		73,411		2,735,294
Dynegy, Inc.		476,028		13,005,085
Eastman Chemical Co.		108,093		7,662,713
Edwards Lifesciences Corp.		889		111,436
EnLink Midstream LLC		37,307		1,180,393
FMSA Holdings, Inc.		25,761		133,700
Foot Locker, Inc.		28,064		1,493,566
Forest City Enterprises, Inc., Class A		3,618		88,641
Genworth Financial, Inc., Class A		65,948		460,317
Geo Group, Inc.		10,844		471,931
Glacier Bancorp, Inc.		8,993		200,274
Google, Inc., Class C		163		87,127
Great Plains Energy, Inc.		21,806		644,803
Green Plains Renewable Energy, Inc.		5,485		128,404
Greenhill & Co., Inc.		26,443		975,218
Halyard Health, Inc.		76,487		3,409,026
The Hanover Insurance Group, Inc.		32,561		2,246,709
Harris Corp.		5,322		357,266
HCA Holdings, Inc.		36,095		2,555,526
Host Hotels & Resorts, Inc.		472,812		10,822,667
Hubbell, Inc., Class B		6,715		712,059
IAC/InterActiveCorp		6,231		379,779
Iconix Brand Group, Inc.		211,994		7,046,681
Ingram Micro, Inc., Class A		159,254		4,010,016
The Interpublic Group of Cos., Inc.		220,676		4,400,279
Invesco Ltd.		5,546		203,705
ITC Holdings Corp.		184,081		7,830,806
Jack in the Box, Inc.		19,146		1,623,389
Jones Lang LaSalle, Inc.		60,327		8,872,895
KeyCorp		8,284		107,609
Keysight Technologies, Inc.		125,426		4,187,974
KLX, Inc.		6,481		254,768
Korn/Ferry International		3,874		110,409
Lancaster Colony Corp.		7,844		705,411
Landstar System, Inc.		1,405		90,032
Lannett Co., Inc.		5,152		244,359
Lear Corp.		7,322		734,763
Liberty Interactive Corp., Series A		54,232		1,483,788
Liberty TripAdvisor Holdings, Inc., Series A		65,345		1,564,359
LifeLock, Inc.		12,211		181,333
Lincoln National Corp.		13,312		665,334
Lions Gate Entertainment Corp.		48,469		1,392,514
LogMeIn, Inc.		17,803		846,533
LyondellBasell Industries NV, Class A		7,339		580,442
Mack-Cali Realty Corp.		10,685		208,464
Manpowergroup, Inc.		162,901		11,872,225
Marathon Petroleum Corp.		21,771		2,015,777
Marvell Technology Group Ltd.		245,586		3,804,127
MBIA, Inc.		364,073		2,919,865
Mead Johnson Nutrition Co.		496		48,851
MedAssets, Inc.		3,821		70,727
Micron Technology, Inc.		461,881		13,516,947
MRC Global, Inc.		328,147		3,547,269
Nationstar Mortgage Holdings, Inc.		47,382		1,218,191
New Residential Investment Corp.		11,989		152,860

See Notes to Financial Statements.

30 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares		Value
Reference Entity — Long
United States (concluded)
Newmont Mining Corp.		255,193	$	6,418,104
NIC, Inc.		88,428		1,451,988
NRG Energy, Inc.		34,155		842,262
Nucor Corp.		62,426		2,724,895
OSI Systems, Inc.		27,536		1,926,969
Outerwall, Inc.		8,763		544,007
Outfront Media, Inc.		69,883		1,981,183
Patterson-UTI Energy, Inc.		43,071		739,098
Pegasystems, Inc.		33,326		652,190
Penske Automotive Group, Inc.		60,967		2,947,754
PolyOne Corp.		7,891		280,841
Prestige Brands Holdings, Inc.		29,138		998,268
Progress Software Corp.		104,059		2,606,678
QUALCOMM, Inc.		1,863		116,363
Reliance Steel & Aluminum Co.		22,886		1,198,540
Reynolds American, Inc.		1,072		72,842
Rite Aid Corp.		69,971		488,398
Rock-Tenn Co., Class A		96,358		6,253,634
Rovi Corp.		37,376		863,759
Royal Gold, Inc.		12,588		912,126
RPC, Inc.		107,386		1,339,103
Sanderson Farms, Inc.		80,535		6,439,579
SeaWorld Entertainment, Inc.		224,961		3,939,067
ServiceMaster Global Holdings, Inc.		193,706		5,474,132
Six Flags Entertainment Corp.		37,453		1,608,981
Southwest Airlines Co.		5,467		246,999
Spirit Airlines, Inc.		1,968		145,908
SPX Corp.		13,310		1,112,317
Stanley Black & Decker, Inc.		10,741		1,005,895
Steel Dynamics, Inc.		296,903		5,059,227
Stillwater Mining Co.		88,807		1,213,992
Swift Transportation Co.		96,199		2,364,571
Telephone & Data Systems, Inc.		37,912		881,454
Tesoro Corp.		67,979		5,555,924
Tessera Technologies, Inc.		9,946		368,798
Time Warner Cable, Inc.		4,153		565,348
Time Warner, Inc.		2,286		178,148
The Timken Co.		7,363		279,868
TimkenSteel Corp.		70,380		1,900,260
TRI Pointe Homes, Inc.		187,205		2,682,648
Tribune Co., Class A		13,831		814,508
Trinity Industries, Inc.		38,532		1,019,942
TrueBlue, Inc.		2,079		45,863
U.S. Silica Holdings, Inc.		31,122		784,274
Union Pacific Corp.		56,516		6,624,240
Unit Corp.		26,860		799,891
United Continental Holdings, Inc.		3,116		216,157
United States Steel Corp.		81,673		1,996,088
Valero Energy Corp.		50,715		2,681,809
Vector Group Ltd.		59,510		1,331,834
Viacom, Inc., Class B		106,772		6,878,252
Voya Financial, Inc.		163,278		6,369,475
Waddell & Reed Financial, Inc., Class A		87,371		3,906,357
Washington Federal, Inc.		50,609		1,005,095
WESCO International, Inc.		27,476		1,834,298
Western Refining, Inc.		5,237		194,450
Whiting Petroleum Corp.		139,956		4,201,479
WPX Energy, Inc.		119,183		1,270,491
Xilinx, Inc.		8,606		331,976
Zayo Group Holdings, Inc.		7,024		194,916
Zebra Technologies Corp., Class A		7,493		625,366
				409,964,078
Total Reference Entity — Long				416,505,101

	Shares			Value
Reference Entity — Short
Canada
Lululemon Athletica, Inc.		(24,254	)	$	(1,606,585	)
Ireland
Accenture PLC, Class A Class A		(189,296	)		(15,906,543	)
Israel
Check Point Software Technologies, Ltd.		(21,788	)		(1,681,380	)
United States
Acadia Healthcare Co., Inc.		(141,242	)		(8,156,725	)
Actuant Corp.		(23,725	)		(548,285	)
Aflac, Inc.		(4,981	)		(284,315	)
Akorn, Inc.		(82,413	)		(3,509,146	)
Allegheny Technologies, Inc.		(13,511	)		(385,469	)
Allegiant Travel Co.		(21,147	)		(3,833,317	)
Alliance Data Systems Corp.		(12,369	)		(3,572,538	)
Amazon.com, Inc.		(43,707	)		(15,495,443	)
Amedisys, Inc.		(19,590	)		(552,046	)
Ameren Corp.		(43,265	)		(1,959,039	)
American Airlines Group, Inc.		(13,437	)		(659,488	)
American Eagle Outfitters, Inc.		(352,976	)		(4,955,783	)
American Tower Corp.		(1,236	)		(119,830	)
Amsurg Corp.		(10,504	)		(579,611	)
AptarGroup, Inc.		(3,032	)		(191,350	)
Arthur J Gallagher & Co.		(81,400	)		(3,616,602	)
Axiall Corp.		(253,163	)		(11,202,463	)
Balchem Corp.		(27,225	)		(1,442,108	)
Bank of Hawaii Corp.		(15,184	)		(857,289	)
Bio-Techne Corp.		(2,540	)		(236,271	)
Boyd Gaming Corp.		(274,615	)		(3,586,472	)
The Brink’s Co.		(2,013	)		(45,111	)
Bristow Group, Inc.		(13,099	)		(729,745	)
CACI International, Inc., Class A Class A		(7,405	)		(626,389	)
Caesars Entertainment Corp.		(122,431	)		(1,333,274	)
Campbell Soup Co.		(181,460	)		(8,299,980	)
Carnival Corp.		(199,209	)		(8,757,228	)
Casey’s General Stores, Inc.		(13,875	)		(1,266,787	)
Cerner Corp.		(35,392	)		(2,348,259	)
Churchill Downs, Inc.		(1,880	)		(178,581	)
CLARCOR, Inc.		(41,296	)		(2,582,239	)
Clean Harbors, Inc.		(6,727	)		(318,322	)
Coach, Inc.		(75,408	)		(2,804,424	)
Cobalt International Energy, Inc.		(18,118	)		(165,236	)
The Coca-Cola Co.		(408,209	)		(16,805,965	)
Colfax Corp.		(22,882	)		(1,036,783	)
CommVault Systems, Inc.		(10,475	)		(456,500	)
comScore, Inc.		(108,089	)		(4,492,179	)
ConAgra Foods, Inc.		(204,048	)		(7,229,421	)
CONSOL Energy, Inc.		(48,974	)		(1,417,797	)
Constellation Brands, Inc.		(4,613	)		(509,506	)
CoreLogic, Inc.		(1,395	)		(46,314	)
Cornerstone OnDemand, Inc.		(5,743	)		(189,232	)
CoStar Group, Inc.		(23,121	)		(4,266,056	)
Coty, Inc., Class A		(123,378	)		(2,346,650	)
Cray, Inc.		(8,264	)		(268,497	)
Crocs, Inc.		(358,578	)		(3,800,927	)
Dealertrack Technologies, Inc.		(60,998	)		(2,452,120	)
Dean Foods Co.		(252,062	)		(4,567,363	)
Deere & Co.		(45,976	)		(3,916,695	)
Diebold, Inc.		(287,108	)		(8,957,770	)
Dillard’s, Inc., Class A Class A		(4,355	)		(494,728	)
Donaldson Co., Inc.		(17,808	)		(651,060	)
Duke Energy Corp.		(4,674	)		(407,292	)
Eclipse Resources Corp.		(15,649	)		(97,024	)
Electronics For Imaging, Inc.		(8	)		(309	)
EMCOR Group, Inc.		(8	)		(323	)
Emerson Electric Co.		(5,779	)		(329,056	)
Enbridge Energy Management LLC		(29,356	)		(1,100,556	)

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 31

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
United States (continued)
Energizer Holdings, Inc.		(1,664	)	$	(213,009	)
Equifax, Inc.		(1,371	)		(115,795	)
Essex Property Trust, Inc.		(3,702	)		(836,837	)
The EW Scripps Co.		(47,170	)		(930,664	)
ExamWorks Group, Inc.		(1,100	)		(40,656	)
Exxon Mobil Corp.		(20,318	)		(1,776,200	)
FireEye, Inc.		(116,580	)		(3,941,570	)
First Cash Financial Services, Inc.		(12,929	)		(642,830	)
First Niagara Financial Group, Inc.		(117,561	)		(954,595	)
FirstEnergy Corp.		(115,732	)		(4,667,472	)
FirstMerit Corp.		(42,960	)		(703,900	)
FleetCor Technologies, Inc.		(409	)		(57,464	)
Flotek Industries, Inc.		(86,977	)		(1,406,418	)
Franklin Electric Co., Inc.		(41,990	)		(1,436,478	)
Freeport-McMoRan, Inc.		(5,125	)		(86,151	)
Frontier Communications Corp.		(827,726	)		(5,558,180	)
Gentex Corp.		(3,769	)		(62,905	)
Granite Construction, Inc.		(92,701	)		(3,159,250	)
Group 1 Automotive, Inc.		(4,752	)		(382,013	)
Groupon, Inc.		(365,347	)		(2,615,885	)
Guidewire Software, Inc.		(67,350	)		(3,374,235	)
Gulfport Energy Corp.		(40,997	)		(1,577,975	)
The Hain Celestial Group, Inc.		(2,594	)		(136,885	)
HB Fuller Co.		(6	)		(247	)
Health Care REIT, Inc.		(2,712	)		(222,248	)
Healthcare Services Group, Inc.		(120,510	)		(3,797,270	)
Heartland Express, Inc.		(7,976	)		(204,903	)
HeartWare International, Inc.		(3,377	)		(282,081	)
HEICO Corp.		(718	)		(43,568	)
Helmerich & Payne, Inc.		(1,560	)		(92,914	)
Hexcel Corp.		(7,204	)		(318,633	)
Hospira, Inc.		(37,441	)		(2,374,883	)
Hudson City Bancorp, Inc.		(461,842	)		(4,142,723	)
Humana, Inc.		(2,722	)		(398,610	)
Impax Laboratories, Inc.		(13,050	)		(478,543	)
Imperva, Inc.		(5,797	)		(242,083	)
Infinera Corp.		(9,165	)		(147,740	)
Integra LifeSciences Holdings Corp.		(12,357	)		(688,532	)
Intrepid Potash, Inc.		(429,601	)		(5,717,989	)
Investors Bancorp, Inc.		(7,499	)		(82,564	)
j2 Global, Inc.		(11,274	)		(647,579	)
Jabil Circuit, Inc.		(20,642	)		(425,432	)
Janus Capital Group, Inc.		(160,687	)		(2,818,450	)
Kate Spade & Co.		(55,698	)		(1,756,158	)
KB Home		(64,979	)		(809,638	)
KBR, Inc.		(6,910	)		(114,222	)
Kilroy Realty Corp.		(1,000	)		(74,150	)
Kinder Morgan, Inc.		(122,231	)		(5,017,583	)
Life Time Fitness, Inc.		(7,123	)		(389,414	)
Loews Corp.		(125,172	)		(4,789,081	)
Louisiana-Pacific Corp.		(510,587	)		(8,358,309	)
Magellan Health, Inc.		(1,073	)		(64,509	)
Magnum Hunter Resources Corp., (Issued 12/27/07, 1 Share for 1 Warrant, Expires 4/15/16, Strike Price $45.82)		(60	)		—
MarketAxess Holdings, Inc.		(2,678	)		(203,448	)
Marketo, Inc.		(7,289	)		(250,960	)
Martin Marietta Materials, Inc.		(36,261	)		(3,906,760	)
Matthews International Corp., Class A		(1,798	)		(83,301	)
McDermott International, Inc.		(553,599	)		(1,245,598	)
McDonald’s Corp.		(111,715	)		(10,326,935	)
Medical Properties Trust, Inc.		(24,734	)		(380,162	)
Medidata Solutions, Inc.		(123,481	)		(5,308,448	)
Mercury General Corp.		(28,458	)		(1,626,375	)
Mettler-Toledo International, Inc.		(1,102	)		(334,953	)
MSC Industrial Direct Co., Inc.		(4,604	)		(345,622	)

	Shares			Value
Reference Entity — Short
United States (continued)
Neogen Corp.		(33,464	)	$	(1,542,690	)
Netflix, Inc.		(3,674	)		(1,623,173	)
NetSuite, Inc.		(20,257	)		(1,993,896	)
Olin Corp.		(321,339	)		(8,055,969	)
ONEOK, Inc.		(6	)		(264	)
Oracle Corp.		(263,848	)		(11,052,593	)
Palo Alto Networks, Inc.		(17,589	)		(2,223,074	)
Pandora Media, Inc.		(16,361	)		(271,593	)
Pinnacle Entertainment, Inc.		(136,869	)		(2,894,779	)
Plum Creek Timber Co., Inc.		(12,740	)		(567,185	)
Polaris Industries, Inc.		(3,759	)		(543,514	)
Post Holdings, Inc.		(3,716	)		(175,581	)
Precision Castparts Corp.		(2,056	)		(411,406	)
PriceSmart, Inc.		(21,457	)		(1,754,753	)
The Procter & Gamble Co.		(1,211	)		(102,075	)
Proofpoint, Inc.		(144,005	)		(7,200,250	)
Public Service Enterprise Group, Inc.		(1,563	)		(66,709	)
PVH Corp.		(20,205	)		(2,227,803	)
Ralph Lauren Corp.		(7,705	)		(1,285,887	)
Republic Services, Inc.		(2,472	)		(98,089	)
Royal Caribbean Cruises, Ltd.		(62,419	)		(4,715,755	)
SCANA Corp.		(57,896	)		(3,692,028	)
Schweitzer-Mauduit International, Inc.		(34,397	)		(1,336,667	)
Scientific Games Corp.		(125,447	)		(1,481,529	)
Select Medical Holdings Corp.		(6,691	)		(90,462	)
Sensient Technologies Corp.		(47,793	)		(2,915,373	)
ServiceNow, Inc.		(120,426	)		(8,779,055	)
Snyder’s-Lance, Inc.		(51,254	)		(1,490,979	)
Solera Holdings, Inc.		(6	)		(310	)
Sotheby’s		(83,211	)		(3,540,628	)
The Southern Co.		(249,360	)		(12,647,539	)
The Spectranetics Corp.		(54,596	)		(1,785,835	)
Splunk, Inc.		(63,538	)		(3,281,738	)
Staples, Inc.		(330,708	)		(5,638,571	)
Stericycle, Inc.		(10,427	)		(1,368,961	)
Stifel Financial Corp.		(4,305	)		(202,981	)
SunEdison, Inc.		(331,411	)		(6,207,328	)
SYNNEX Corp.		(38,718	)		(2,872,488	)
Sysco Corp.		(255,974	)		(10,026,502	)
TAL International Group, Inc.		(11,220	)		(456,093	)
Tech Data Corp.		(738	)		(42,140	)
TECO Energy, Inc.		(90,275	)		(1,925,566	)
Teleflex, Inc.		(1,114	)		(122,050	)
Tempur Sealy International, Inc.		(27,131	)		(1,493,019	)
Teradata Corp.		(12,484	)		(556,287	)
Thermo Fisher Scientific, Inc.		(1,705	)		(213,483	)
Tidewater, Inc.		(75,461	)		(2,207,989	)
Tiffany & Co.		(30,812	)		(2,669,552	)
Total System Services, Inc.		(38,366	)		(1,357,005	)
Twitter, Inc.		(34,354	)		(1,289,306	)
Tyler Technologies, Inc.		(8,594	)		(911,652	)
UIL Holdings Corp.		(4,203	)		(193,338	)
United Bankshares, Inc.		(9,935	)		(335,902	)
United Natural Foods, Inc.		(7,959	)		(615,072	)
UnitedHealth Group, Inc.		(131,166	)		(13,936,387	)
US Ecology, Inc.		(50,905	)		(2,110,521	)
USG Corp.		(139,522	)		(4,248,445	)
Varian Medical Systems, Inc.		(6,784	)		(627,927	)
Veeco Instruments, Inc.		(47,261	)		(1,378,603	)
Verisk Analytics, Inc., Class A		(23,120	)		(1,487,772	)
Virtus Investment Partners, Inc.		(23,097	)		(3,132,646	)
WageWorks, Inc.		(19,459	)		(1,071,023	)
Wal-Mart Stores, Inc.		(77,027	)		(6,545,754	)
WellCare Health Plans, Inc.		(19,025	)		(1,385,971	)
Westar Energy, Inc.		(10,966	)		(468,468	)
WEX, Inc.		(23,483	)		(2,161,610	)

See Notes to Financial Statements.

32 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
United States (concluded)
Wolverine World Wide, Inc.		(212,150	)	$	(5,972,022	)
Workday, Inc., Class A		(1,468	)		(116,647	)
WR Grace & Co.		(10,744	)		(931,290	)
XPO Logistics, Inc.		(55,763	)		(2,051,521	)
Yelp, Inc.		(1,789	)		(93,869	)
ZS Pharma, Inc.		(1,822	)		(81,862	)
Zynga, Inc., Class A		(393,853	)		(1,008,264	)
					(443,594,341	)
Total Reference Entity — Short					(462,788,849	)
Net Value of Reference Entity — Bank of America N.A.				$	(46,283,748	)

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Deutsche Bank AG as of January 31, 2015, expiration dates—2/16/15 — 2/02/16:

Reference Entity — Long
Australia
Aristocrat Leisure Ltd.	23,653	$	128,137
Arrium Ltd.	868,194		137,013
AusNet Services	670,761		728,072
Boral Ltd.	14,738		63,788
Caltex Australia Ltd.	15,789		408,623
CSR Ltd.	27,596		85,243
Dexus Property Group	211,466		1,262,890
Fairfax Media, Ltd.	2,171,908		1,510,836
iiNET, Ltd.	83,704		485,797
JB Hi-Fi Ltd.	181,724		2,355,615
Newcrest Mining Ltd.	142,408		1,537,645
Qantas Airways Ltd.	551,660		1,111,634
Rio Tinto Ltd.	140,475		6,264,073
Seven West Media Ltd.	40,045		40,590
Transpacific Industries Group, Ltd.	2,559,436		1,643,829
Woodside Petroleum Ltd.	16,473		437,506
			18,201,291
Austria
Andritz AG	16,271		880,772
Voestalpine AG	157,989		5,626,387
			6,507,159
Canada
Agnico Eagle Mines Ltd.	38,500		1,297,978
Aimia, Inc.	245,220		2,630,321
Air Canada	56,143		519,147
Boardwalk Real Estate Investment Trust	27,029		1,304,548
Canadian Real Estate Investment Trust	66,616		2,527,917
Canfor Corp.	1,146		28,634
Capital Power Corp.	9,330		185,690
Centerra Gold, Inc.	9,688		58,096
Chartwell Retirement Residences	8,533		84,880
Cogeco Cable, Inc.	5,943		341,417
Detour Gold Corp.	28,960		296,278
Dominion Diamond Corp.	116,917		1,942,329
Domtar Corp.	81,345		3,116,294
Emera, Inc.	138,890		4,544,776
Encana Corp.	35,299		431,688
Finning International, Inc.	18,375		302,948
Franco-Nevada Corp.	19,834		1,144,587
Goldcorp, Inc.	152,666		3,687,196
Industrial Alliance Insurance & Financial Services, Inc.	3,188		101,508

	Shares		Value
Reference Entity — Long
Canada (concluded)
Kinross Gold Corp.		23,005	$	78,029
Linamar Corp.		109,563		6,276,140
Magna International, Inc.		9,547		917,284
Methanex Corp.		107,481		4,750,242
New Gold, Inc.		32,277		141,483
Onex Corp.		35,350		1,940,397
Open Text Corp.		57,575		3,265,015
Pan American Silver Corp.		83,961		983,190
Quebecor, Inc., Class B		42,073		1,054,557
Raging River Exploration, Inc.		143,757		834,915
Royal Bank of Canada		77,953		4,400,998
Silver Wheaton Corp.		5,979		137,347
Superior Plus Corp.		12,715		122,077
TELUS Corp.		149,739		5,136,636
Whitecap Resources, Inc.		8,269		80,757
				54,665,299
Denmark
Novo Nordisk A/S, Class B		294,103		13,108,368
Novozymes A/S, Class B		660		30,099
Vestas Wind Systems A/S		61,849		2,403,057
				15,541,524
France
Faurecia		11,708		470,268
Natixis		45,664		290,422
Technicolor SA, Registered Shares		305,119		1,822,693
Technip SA		10,550		616,085
				3,199,468
Germany
Bayerische Motoren Werke AG, Preference Shares		528		44,700
Commerzbank AG		382,185		4,582,130
Continental AG		828		186,835
Duerr AG		16,996		1,546,827
Fresenius SE & Co. KGaA		111,272		6,368,845
K+S AG, Registered Shares		312,391		9,863,183
Kloeckner & Co. SE		20,016		206,233
Krones AG		884		83,691
Nordex SE		5,328		102,832
ProSiebenSat.1 Media AG, Registered Shares		264,036		11,688,267
Salzgitter AG		79,083		2,155,867
Solarworld AG		10		129
Telefonica Deutschland Holding AG		9,572		53,325
ThyssenKrupp AG		72,701		1,888,675
United Internet AG, Registered Shares		2,498		108,214
Volkswagen AG, Preference Shares		2,058		459,115
				39,338,868
Hong Kong
Cheung Kong Holdings Ltd.		149,000		2,843,334
CLP Holdings Ltd.		272,000		2,428,299
Galaxy Entertainment Group Ltd.		175,000		914,056
Hang Lung Properties Ltd.		499,000		1,467,218
HKT Trust and HKT Ltd.		219,000		287,017
Hutchison Whampoa Ltd.		530,000		7,034,944
Kerry Properties Ltd.		352,500		1,245,584
Li & Fung Ltd.		324,000		321,396
MGM China Holdings Ltd.		135,600		328,456
MTR Corp.		32,500		143,976
New World Development Co. Ltd.		871,000		1,038,448
Power Assets Holdings Ltd.		11,500		120,281
Sino Land Co., Ltd.		162,000		270,913
Swire Properties Ltd.		103,200		331,317
Wheelock & Co. Ltd.		200,000		1,131,559
				19,906,798

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 33

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares		Value
Reference Entity — Long
Iran
Smurfit Kappa Group PLC		229,017	$	5,630,451
Ireland
Bank of Ireland		1,099,644		330,959
Glanbia PLC		4,712		76,141
Kerry Group PLC, Class A		2,790		202,203
				609,303
Isle of Man
Playtech PLC		42,959		437,244
Italy
A2A SpA		44,931		42,824
Ansaldo STS SpA		37,793		379,780
Autogrill SpA		39,755		339,618
Moncler SpA		86,853		1,290,146
Telecom Italia SpA, Non-Convertible Savings Shares		186,142		175,786
UnipolSai SpA		21,984		60,939
				2,289,093
Japan
Advance Residence Investment Corp.		16		40,973
Asahi Group Holdings Ltd.		183,200		6,010,205
Casio Computer Co. Ltd.		37,100		580,794
Chubu Electric Power Co., Inc.		4,000		52,816
Citizen Holdings Co. Ltd.		13,900		110,951
COMSYS Holdings Corp.		254,700		3,465,006
CyberAgent, Inc.		30,600		1,347,373
Daifuku Co. Ltd.		11,700		134,035
Disco Corp.		92,900		8,510,891
FANUC Corp.		900		152,440
Frontier Real Estate Investment Corp.		176		802,315
Fujitsu General Ltd.		45,000		441,395
Haseko Corp.		882,200		7,167,918
Hitachi Metals Ltd.		8,000		130,362
Japan Airport Terminal Co., Ltd.		1,100		49,566
Japan Real Estate Investment Corp.		288		1,399,217
Kaken Pharmaceutical Co. Ltd.		3,000		63,836
Keihin Corp.		53,900		859,133
Kissei Pharmaceutical Co. Ltd.		5,400		161,995
Kyushu Electric Power Co., Inc.		22,000		212,303
Makita Corp.		5,000		221,783
Mazda Motor Corp.		64,600		1,326,913
Mitsubishi Chemical Holdings Corp.		195,600		1,013,762
Mitsubishi Corp.		75,600		1,318,857
Mitsubishi Gas Chemical Co., Inc.		175,000		791,236
Mitsubishi Materials Corp.		526,000		1,658,668
Mitsubishi Motors Corp.		378,100		3,196,535
Mitsui & Co. Ltd.		21,400		272,310
Mitsui Mining & Smelting Co. Ltd.		137,000		286,080
Murata Manufacturing Co. Ltd.		49,600		5,354,532
Nagoya Railroad Co. Ltd.		26,000		102,141
NH Foods Ltd.		13,000		321,387
Nifco, Inc.		72,100		2,483,629
Nihon M&A Center, Inc.		30,700		1,065,482
Nippo Corp.		7,000		108,846
Nippon Paper Industries Co., Ltd.		28,800		454,149
Nippon Steel & Sumitomo Metal		1,166,000		2,725,284
Nishimatsu Construction Co., Ltd.		26,000		104,447
Nisshin Steel Holdings Co. Ltd.		15,000		155,270
OSG Corp.		2,400		44,575
Resona Holdings, Inc.		456,800		2,266,281
Senshu Ikeda Holdings, Inc.		146,400		650,081
Start Today Co., Ltd.		30,900		624,589
Sumitomo Metal Mining Co. Ltd.		374,000		5,345,236
Sumitomo Mitsui Trust Holdings, Inc.		1,437,000		5,053,247

	Shares		Value
Reference Entity — Long
Japan (concluded)
Sumitomo Real Estate Sales Co. Ltd.		20,300	$	480,157
Tadano Ltd.		38,000		457,361
Taiheiyo Cement Corp.		115,000		337,451
Takashimaya Co. Ltd.		40,000		350,843
Takata Corp.		48,800		569,166
Temp Holdings Co., Ltd.		12,000		405,653
Tokyo Steel Manufacturing Co., Ltd.		47,700		358,440
Yamato Kogyo Co. Ltd.		1,600		41,177
				71,639,092
Netherlands
Arcadis NV		40,136		1,214,728
Norway
Akastor ASA		206,351		507,334
Aker Solutions ASA		242,505		1,183,869
Norsk Hydro ASA		854,483		5,021,574
Statoil ASA		51,437		861,378
Storebrand ASA		384,837		1,163,355
Subsea 7 SA		289,314		2,461,057
TGS Nopec Geophysical Co. ASA		202,148		4,688,930
				15,887,497
Portugal
CTT — Correios de Portugal SA		8,323		87,572
Singapore
CapitaCommercial Trust		209,100		273,586
ComfortDelGro Corp. Ltd.		319,600		677,713
Noble Group Ltd.		5,043,000		3,944,862
Yangzijiang Shipbuilding Holdings Ltd.		4,427,000		4,047,066
				8,943,227
Spain
Abengoa SA, -B Shares		38,574		113,970
Amadeus IT Holding SA, Class A		176,561		7,080,845
Banco Popular Espanol SA		1,567,502		6,625,848
CaixaBank SA		417,994		1,820,674
Distribuidora Internacional de Alimentacion SA		349,085		2,260,021
Ebro Foods SA		22,961		390,695
Endesa SA		174,377		3,480,186
Ferrovial SA		19,028		377,494
Gamesa Corp. Tecnologica SA		65,476		647,344
Iberdrola SA		899,565		6,209,178
International Consolidated Airlines Group SA		5,705		46,738
Mediaset Espana Comunicacion SA		131,389		1,599,549
Sacyr SA		236,021		872,867
Telefonica SA		617,696		9,262,601
Tubacex SA		8,153		23,850
				40,811,860
Sweden
Hennes & Mauritz AB, Class B		4,555		187,723
Switzerland
Flughafen Zuerich AG, Registered Shares		525		357,426
United Kingdom
Anglo American PLC		17,867		298,444
Howden Joinery Group PLC		674,903		4,306,928
Inchcape PLC		67,845		708,702
International Consolidated Airlines Group SA		67,187		547,318
Pace PLC		93,435		468,913
Premier Oil PLC		805,985		1,747,447
Rio Tinto PLC		40,368		1,773,890
Vedanta Resources PLC		99,455		555,755
				10,407,397
Total Reference Entity — Long				315,863,020

See Notes to Financial Statements.

34 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
Australia
AGL Energy, Ltd.		(5,107	)	$	(56,456	)
TPG Telecom, Ltd.		(132,191	)		(683,701	)
					(740,157	)
Austria
Verbund AG		(54,968	)		(962,085	)
Belgium
Anheuser-Busch InBev NV		(27,245	)		(3,322,966	)
Canada
Agrium, Inc.		(12,873	)		(1,373,410	)
Alimentation Couche-Tard, Inc.		(2,862	)		(112,142	)
AltaGas, Ltd.		(7,604	)		(256,957	)
Bank of Montreal		(4,893	)		(280,827	)
Canadian Utilities, Ltd.		(1,696	)		(56,231	)
Cineplex, Inc.		(43,411	)		(1,543,829	)
George Weston, Ltd.		(53	)		(4,201	)
Gildan Activewear, Inc.		(824	)		(48,103	)
Hudson’s Bay Co.		(94,365	)		(1,739,221	)
Husky Energy, Inc.		(2,455	)		(52,840	)
Inter Pipeline, Ltd.		(2,282	)		(59,335	)
Loblaw Cos., Ltd.		(156,332	)		(7,766,774	)
Manitoba Telecom Services, Inc.		(6,858	)		(138,434	)
Mullen Group, Ltd.		(429	)		(6,884	)
Norbord, Inc.		(18,352	)		(408,432	)
Northland Power, Inc.		(15,091	)		(203,082	)
Paramount Resources, Ltd.		(109	)		(2,446	)
Pembina Pipeline Corp.		(3,137	)		(97,465	)
Saputo, Inc.		(68	)		(1,955	)
Sierra Wireless, Inc.		(46,826	)		(1,693,651	)
					(15,846,219	)
Denmark
FLSmidth & Co. A/S		(5,231	)		(221,796	)
William Demant Holding A/S		(10,148	)		(770,403	)
					(992,199	)
Finland
Cargotec OYJ		(4,482	)		(143,735	)
France
Accor SA		(2,869	)		(143,700	)
Air Liquide SA		(22,275	)		(2,808,174	)
Bollore SA		(300	)		(1,291	)
Cie de Saint-Gobain		(60,719	)		(2,586,671	)
Kering		(13,722	)		(2,768,596	)
L’Oreal SA		(11,271	)		(2,015,303	)
Legrand SA		(5,079	)		(273,763	)
LVMH Moet Hennessy Louis Vuitton SA		(2,823	)		(454,007	)
Neopost SA		(4,953	)		(257,457	)
Rubis SCA		(11,791	)		(683,817	)
Sodexo		(1,630	)		(161,719	)
Vinci SA		(1,957	)		(103,582	)
					(12,258,080	)
Germany
Drillisch AG		(95,295	)		(3,691,904	)
Leoni AG		(13,747	)		(857,619	)
Rheinmetall AG		(17,270	)		(747,333	)
					(5,296,856	)
Hong Kong
Chow Tai Fook Jewellery Group, Ltd.		(2,606,400	)		(3,455,508	)
Esprit Holdings Ltd.		(2,078,700	)		(2,339,442	)
Hong Kong & China Gas Co., Ltd.		(3,356,000	)		(7,685,113	)
Melco International Development, Ltd.		(266,000	)		(529,626	)
Sun Hung Kai Properties, Ltd.		(12,000	)		(195,268	)
Swire Pacific, Ltd.		(190,500	)		(2,551,095	)
					(16,756,052	)

	Shares			Value
Reference Entity — Short
Japan
Aeon Co. Ltd.		(94,100	)	$	(993,897	)
AEON Financial Service Co., Ltd.		(146,200	)		(2,627,251	)
Asahi Glass Co., Ltd.		(1,185,000	)		(6,304,180	)
Asics Corp.		(9,900	)		(242,940	)
Chiyoda Corp.		(12,000	)		(92,423	)
Coca-Cola East Japan Co. Ltd.		(122,900	)		(2,046,281	)
Coca-Cola West Co., Ltd.		(22,500	)		(321,824	)
Cosmos Pharmaceutical Corp.		(19,700	)		(3,174,330	)
Daihatsu Motor Co. Ltd.		(140,700	)		(1,961,988	)
Daikin Industries, Ltd.		(16,400	)		(1,141,210	)
Don Quijote Holdings Co., Ltd.		(16,900	)		(1,230,448	)
Eisai Co., Ltd.		(153,700	)		(7,663,224	)
HIS Co. Ltd.		(1,600	)		(54,863	)
Hitachi Zosen Corp.		(7,200	)		(39,450	)
Hokuriku Electric Power Co.		(37,700	)		(532,782	)
House Foods Group, Inc.		(11,000	)		(220,070	)
Ibiden Co., Ltd.		(14,700	)		(220,990	)
IHI Corp.		(1,904,000	)		(9,919,973	)
IT Holdings Corp.		(9,200	)		(152,816	)
Iwatani Corp.		(439,000	)		(2,834,134	)
Japan Exchange Group, Inc.		(30,600	)		(712,076	)
Japan Retail Fund Investment Corp.		(55	)		(119,135	)
The Japan Steel Works, Ltd.		(98,000	)		(392,019	)
K’s Holdings Corp.		(30,200	)		(886,970	)
Kagome Co., Ltd.		(156,000	)		(2,470,476	)
Kajima Corp.		(57,000	)		(225,522	)
Kakaku.com, Inc.		(4,700	)		(66,487	)
Kansai Paint Co., Ltd.		(35,000	)		(611,740	)
Kao Corp.		(4,100	)		(179,777	)
Keisei Electric Railway Co., Ltd.		(43,000	)		(553,927	)
Kirin Holdings Co., Ltd.		(143,100	)		(1,926,729	)
Komeri Co. Ltd.		(2,100	)		(45,041	)
Konami Corp.		(18,700	)		(348,914	)
Kubota Corp.		(5,000	)		(74,227	)
Kurita Water Industries Ltd.		(27,400	)		(583,715	)
Kyocera Corp.		(230,000	)		(10,123,371	)
Kyowa Hakko Kirin Co., Ltd.		(71,000	)		(808,513	)
Leopalace21 Corp.		(32,300	)		(208,991	)
McDonald’s Holdings Co. Japan Ltd.		(13,800	)		(302,691	)
Mitsui Engineering & Shipbuilding Co. Ltd.		(710,000	)		(1,154,316	)
Mitsui OSK Lines Ltd.		(18,000	)		(60,767	)
Nabtesco Corp.		(1,700	)		(43,888	)
NGK Insulators, Ltd.		(334,000	)		(6,730,514	)
NHK Spring Co., Ltd.		(87,400	)		(788,332	)
Nikon Corp.		(5,700	)		(73,003	)
Nippon Electric Glass Co. Ltd.		(808,000	)		(4,170,113	)
Nippon Paint Co., Ltd.		(159,600	)		(4,999,507	)
Nippon Shinyaku Co., Ltd.		(28,000	)		(924,959	)
Nisshin Seifun Group, Inc.		(4,900	)		(60,264	)
Ono Pharmaceutical Co., Ltd.		(95,700	)		(10,071,859	)
Onward Holdings Co. Ltd.		(292,000	)		(1,883,066	)
Osaka Gas Co., Ltd.		(25,000	)		(98,541	)
Pigeon Corp.		(25,900	)		(1,617,153	)
Pola Orbis Holdings, Inc.		(7,700	)		(327,900	)
Rakuten, Inc.		(10,300	)		(142,596	)
Rengo Co., Ltd.		(440,000	)		(1,848,687	)
Rinnai Corp.		(6,800	)		(455,168	)
Ryohin Keikaku Co., Ltd.		(12,700	)		(1,406,877	)
Santen Pharmaceutical Co., Ltd.		(19,800	)		(1,235,610	)
Sega Sammy Holdings, Inc.		(20,100	)		(261,746	)
Shimadzu Corp.		(84,000	)		(872,747	)
Shimamura Co. Ltd.		(5,200	)		(462,545	)
Sohgo Security Services Co., Ltd.		(40,700	)		(1,041,690	)
Sony Corp.		(123,800	)		(2,911,909	)
Sugi Holdings Co., Ltd.		(2,400	)		(112,686	)
Sumco Corp.		(144,800	)		(2,430,151	)

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 35

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
Japan (concluded)
Sumitomo Forestry Co., Ltd.		(108,900	)	$	(1,012,877	)
T&D Holdings, Inc.		(12,500	)		(140,770	)
Teijin Ltd.		(227,000	)		(676,198	)
Terumo Corp.		(27,500	)		(681,971	)
Tokyo Gas Co., Ltd.		(458,000	)		(2,732,023	)
Toray Industries, Inc.		(59,000	)		(502,567	)
Toyo Tire & Rubber Co., Ltd.		(303,800	)		(6,842,665	)
Toyota Tsusho Corp.		(128,700	)		(3,047,942	)
Tsumura & Co.		(10,100	)		(229,835	)
Ushio, Inc.		(17,000	)		(196,947	)
Yamazaki Baking Co., Ltd.		(18,000	)		(265,014	)
					(124,930,798	)
Luxembourg
ArcelorMittal		(28,742	)		(274,865	)
Millicom International Cellular SA		(828	)		(52,802	)
					(327,667	)
Macau
Wynn Macau, Ltd.		(338,800	)		(938,187	)
Netherlands
Akzo Nobel NV		(11,487	)		(827,537	)
ING Groep NV		(18,481	)		(232,225	)
Randstad Holding NV		(5,798	)		(304,766	)
SBM Offshore NV		(19,677	)		(215,390	)
TomTom NV		(130,698	)		(858,821	)
					(2,438,739	)
Norway
Opera Software ASA		(116,062	)		(1,537,514	)
Portugal
Jeronimo Martins SGPS SA		(401,008	)		(4,313,387	)
Singapore
Golden Agri-Resources Ltd.		(17,471,100	)		(5,419,593	)
Suntec Real Estate Investment Trust		(492,000	)		(682,566	)
					(6,102,159	)
Sweden
Assa Abloy AB		(30,605	)		(1,671,459	)
Hexagon AB, -B Shares		(52,531	)		(1,663,289	)
ICA Gruppen AB		(63,229	)		(2,429,349	)
SKF AB, -B Shares		(76,876	)		(1,812,112	)
Volvo AB, -B Shares		(3,714	)		(43,495	)
					(7,619,704	)
Switzerland
Dufry AG		(24,625	)		(3,617,468	)
STMicroelectronics NV		(282,839	)		(2,348,515	)
					(5,965,983	)
United Kingdom
Ashmore Group PLC		(54,444	)		(229,119	)
Associated British Foods PLC		(131,265	)		(6,121,834	)
AVEVA Group PLC		(45,166	)		(893,222	)
CNH Industrial NV		(15,632	)		(119,003	)
Drax Group PLC		(10,076	)		(54,672	)
easyJet PLC		(178,880	)		(4,987,690	)
Greene King PLC		(58,324	)		(736,906	)
Hargreaves Lansdown PLC		(521,433	)		(7,904,204	)
ICAP PLC		(56,992	)		(400,200	)
Michael Page International PLC		(441,966	)		(3,092,658	)
Mitie Group PLC		(233,615	)		(948,970	)
Ocado Group PLC		(291,238	)		(1,794,923	)
Pennon Group PLC		(36,120	)		(482,822	)
Serco Group PLC		(139,879	)		(325,299	)
Smiths Group PLC		(83,255	)		(1,409,010	)

	Shares			Value
Reference Entity — Short
United Kingdom (concluded)
Spectris PLC		(53,506	)	$	(1,681,381	)
Sports Direct International PLC		(496,959	)		(5,300,024	)
Standard Life PLC		(685,828	)		(4,143,665	)
Taylor Wimpey PLC		(22,630	)		(45,974	)
Telecity Group PLC		(180,040	)		(2,332,468	)
Tesco PLC		(1,471,588	)		(4,976,414	)
Unilever NV		(9,803	)		(425,103	)
Vodafone Group PLC		(1,938,099	)		(6,815,282	)
Whitbread PLC		(39,096	)		(2,934,578	)
					(58,155,421	)
Total Reference Entity — Short					(268,647,908	)
Net Value of Reference Entity — Deutsche Bank AG				$	47,215,112

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Goldman Sachs & Co. as of January 31, 2015, expiration dates 3/26/15 — 8/04/16:

Reference Entity — Long
Bermuda
Assured Guaranty Ltd.	101,834	$	2,486,786
Netherlands
AVG Technologies NV	19,892		393,464
Core Laboratories NV	5,976		554,274
NXP Semiconductor NV	194,601		15,439,643
			16,387,381
Singapore
Flextronics International Ltd.	309,802		3,444,998
United Kingdom
Markit Ltd.	186,165		4,886,831
Noble Corp. PLC	28,033		454,696
			5,341,527
United States
AbbVie, Inc.	34,718		2,095,231
Activision Blizzard, Inc.	3,214		67,157
Acxiom Corp.	49,513		901,137
Advent Software, Inc.	10,527		440,555
Air Lease Corp.	154,042		5,382,227
Alaska Air Group, Inc.	5,139		348,784
Alcoa, Inc.	693,513		10,853,478
Ally Financial, Inc.	203,797		3,813,042
Amdocs Ltd.	48,364		2,330,178
American Financial Group, Inc.	6,944		403,030
American Water Works Co., Inc.	47,950		2,691,913
AmTrust Financial Services, Inc.	14,655		741,836
Apartment Investment & Management Co., Class A	54,740		2,181,936
ArcBest Corp.	88,321		3,290,840
Aruba Networks, Inc.	60,985		1,011,131
Aspen Technology, Inc.	109,375		3,865,859
Assurant, Inc.	4,720		299,767
Axalta Coating Systems, Ltd.	7,678		197,094
The Babcock & Wilcox Co.	216,195		5,886,990
Berry Plastics Group, Inc.	184,082		6,225,653
Best Buy Co., Inc.	69,445		2,444,464
Blackstone Mortgage Trust, Inc., Class A	66,227		1,933,828
The Boeing Co.	140,329		20,399,627
Boise Cascade Co.	79,149		3,200,786
Booz Allen Hamilton Holding Corp.	95,732		2,786,759
Brinker International, Inc.	106,096		6,199,189
Broadridge Financial Solutions, Inc.	1,243		59,652

See Notes to Financial Statements.

36 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares		Value
Reference Entity — Long
United States (continued)
Cabot Corp.		9,383	$	397,933
Cabot Microelectronics Corp.		24,995		1,235,003
Cal-Maine Foods, Inc.		8,301		290,950
Calpine Corp.		492,230		10,277,762
Cameron International Corp.		30,896		1,383,523
Capstead Mortgage Corp.		25,888		311,174
Cardinal Health, Inc.		68,906		5,732,290
Catalent, Inc.		97,460		2,691,845
Caterpillar, Inc.		27,058		2,163,828
CBL & Associates Properties, Inc.		45,022		928,354
CBS Corp., Class B		81,695		4,477,703
Celanese Corp., Series A		15,836		851,343
CenterPoint Energy, Inc.		396,016		9,144,009
Chatham Lodging Trust		9,876		307,440
Cirrus Logic, Inc.		108,203		2,867,379
CIT Group, Inc.		21,224		930,036
Citrix Systems, Inc.		4,217		249,899
Clearwater Paper Corp.		9,105		673,952
Coca-Cola Enterprises, Inc.		521,434		21,952,371
CommScope Holding Co., Inc.		106,824		3,002,289
Compass Minerals International, Inc.		74,207		6,485,692
Computer Sciences Corp.		28,725		1,743,033
Core-Mark Holding Co., Inc.		4,285		285,724
Crane Co.		90,186		5,496,837
Crimson Wine Group Ltd.		1		9
Cytec Industries, Inc.		27,667		1,327,739
DDR Corp.		150,296		2,945,802
Delek U.S. Holdings, Inc.		91,515		2,823,238
Diodes, Inc.		48,138		1,272,287
DIRECTV		40,381		3,443,692
Domino’s Pizza, Inc.		1,495		148,080
Dover Corp.		32,382		2,268,035
The Dow Chemical Co.		10,237		462,303
DST Systems, Inc.		3,882		375,389
DuPont Fabros Technology, Inc.		58,496		2,179,561
Dynegy, Inc.		524,294		14,323,712
Eagle Materials, Inc.		4,067		289,652
Eastman Chemical Co.		13,312		943,688
EnLink Midstream LLC		55,631		1,760,165
FMSA Holdings, Inc.		70,430		365,532
Foot Locker, Inc.		5,573		296,595
GATX Corp.		3,221		184,080
General Dynamics Corp.		832		110,831
Genworth Financial, Inc., Class A		9,237		64,474
Geo Group, Inc.		28,763		1,251,766
Glacier Bancorp, Inc.		26,784		596,480
Great Plains Energy, Inc.		61,471		1,817,697
Green Plains Renewable Energy, Inc.		15,890		371,985
Greenhill & Co., Inc.		53,356		1,967,769
Halyard Health, Inc.		30,821		1,373,692
The Hanover Insurance Group, Inc.		52,552		3,626,088
Hasbro, Inc.		993		54,536
HCA Holdings, Inc.		135,466		9,590,993
HD Supply Holdings, Inc.		16,067		463,212
Health Net, Inc.		52,528		2,845,442
Host Hotels & Resorts, Inc.		689,331		15,778,787
Hubbell, Inc., Class B		13,112		1,390,396
Huntsman Corp.		19,717		432,985
Iconix Brand Group, Inc.		50,530		1,679,617
Ingram Micro, Inc., Class A		121,758		3,065,866
The Interpublic Group of Cos., Inc.		263,507		5,254,330
Invesco Ltd.		1,607		59,025
ITC Holdings Corp.		233,918		9,950,872
ITT Corp.		1,278		45,765
Jack in the Box, Inc.		27,951		2,369,965
Jones Lang LaSalle, Inc.		74,953		11,024,087

	Shares		Value
Reference Entity — Long
United States (continued)
Keysight Technologies, Inc.		120,282	$	4,016,216
KLX, Inc.		2,281		89,666
Korn/Ferry International		7,948		226,518
Lancaster Colony Corp.		20,652		1,857,234
Landstar System, Inc.		1,967		126,045
Lannett Co., Inc.		2,901		137,594
Lear Corp.		3,252		326,338
Liberty Interactive Corp., Series A		76,281		2,087,048
Liberty TripAdvisor Holdings, Inc., Series A		82,268		1,969,496
LifeLock, Inc.		25,029		371,681
Lions Gate Entertainment Corp.		78,076		2,243,123
LogMeIn, Inc.		58,811		2,796,463
LyondellBasell Industries NV, Class A		75,620		5,980,786
Mack-Cali Realty Corp.		36,858		719,100
Manpowergroup, Inc.		274,577		20,011,172
Marathon Petroleum Corp.		138,273		12,802,697
Marvell Technology Group Ltd.		366,526		5,677,488
MAXIMUS, Inc.		51,057		2,844,896
MBIA, Inc.		415,887		3,335,414
MedAssets, Inc.		1,950		36,094
Memorial Resource Development Corp.		4,216		80,736
The Michaels Cos., Inc.		54,790		1,413,582
Micron Technology, Inc.		83,938		2,456,446
MRC Global, Inc.		311,521		3,367,542
Nationstar Mortgage Holdings, Inc.		25,815		663,704
New Residential Investment Corp.		3,717		47,392
Newmont Mining Corp.		481,672		12,114,051
NIC, Inc.		106,581		1,750,060
NRG Energy, Inc.		44,599		1,099,811
Nucor Corp.		88,201		3,849,974
ON Semiconductor Corp.		189,986		1,901,760
OSI Systems, Inc.		14,272		998,755
Outerwall, Inc.		7,104		441,016
Outfront Media, Inc.		35,658		1,010,904
Patterson-UTI Energy, Inc.		71,812		1,232,294
Pegasystems, Inc.		68,093		1,332,580
Penske Automotive Group, Inc.		64,196		3,103,877
Phillips 66		37,830		2,660,206
Pilgrim’s Pride Corp.		5,485		148,918
PolyOne Corp.		10,584		376,685
PRA Health Sciences, Inc.		1,713		44,761
Prestige Brands Holdings, Inc.		36,745		1,258,884
Progress Software Corp.		94,945		2,378,372
Reliance Steel & Aluminum Co.		25,423		1,331,402
Rite Aid Corp.		114,561		799,636
Rock-Tenn Co., Class A		85,842		5,571,146
Rovi Corp.		5,033		116,313
RPC, Inc.		120,201		1,498,906
Sanderson Farms, Inc.		69,271		5,538,909
SeaWorld Entertainment, Inc.		255,735		4,477,920
ServiceMaster Global Holdings, Inc.		54,053		1,527,538
Simon Property Group, Inc.		2,192		435,463
Six Flags Entertainment Corp.		75,978		3,264,015
Skyworks Solutions, Inc.		161,000		13,371,050
SPX Corp.		18,579		1,552,647
Stanley Black & Decker, Inc.		9,460		885,929
Steel Dynamics, Inc.		211,826		3,609,515
Stillwater Mining Co.		75,052		1,025,961
Swift Transportation Co.		79,615		1,956,937
Symetra Financial Corp.		1,886		38,305
Telephone & Data Systems, Inc.		40,046		931,069
Tesoro Corp.		30,363		2,481,568
Tessera Technologies, Inc.		48,424		1,795,562
Time Warner, Inc.		15,285		1,191,160
The Timken Co.		14,816		563,156
TimkenSteel Corp.		16,513		445,851

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 37

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares			Value
Reference Entity — Long
United States (concluded)
TRI Pointe Homes, Inc.		421,575		$	6,041,170
Tribune Co., Class A		30,212			1,779,185
Trinity Industries, Inc.		38,480			1,018,566
U.S. Silica Holdings, Inc.		15,127			381,200
Ultra Petroleum Corp.		3,980			50,745
Union Pacific Corp.		53,639			6,287,027
United States Steel Corp.		72,939			1,782,629
Valero Energy Corp.		274,918			14,537,664
Vector Group Ltd.		15,813			353,895
Viacom, Inc., Class B		125,764			8,101,717
Virgin America, Inc.		3,164			106,121
Voya Financial, Inc.		44,218			1,724,944
WABCO Holdings, Inc.		14,536			1,383,391
Waddell & Reed Financial, Inc., Class A		101,372			4,532,342
Washington Federal, Inc.		34,975			694,603
Weingarten Realty Investors		8,630			323,452
WESCO International, Inc.		139,586			9,318,761
Western Refining, Inc.		30,494			1,132,242
Whiting Petroleum Corp.		145,376			4,364,187
WPX Energy, Inc.		237,772			2,534,650
Xilinx, Inc.		17,877			689,605
Zayo Group Holdings, Inc.		9,253			256,771
Zebra Technologies Corp., Class A		1,683			140,463
					517,861,398
Total Reference Entity — Long					545,522,090
Reference Entity — Short
Australia
InterOil Corp.		(106,526	)		(4,006,443	)
Canada
Lululemon Athletica, Inc.		(165,034	)		(10,931,852	)
Ireland
Accenture PLC, Class A Class A		(115,097	)		(9,671,601	)
FleetMatics Group PLC		(8,370	)		(296,382	)
					(9,967,983	)
Israel
Check Point Software Technologies, Ltd.		(29,348	)		(2,264,785	)
Netherlands
InterXion Holding NV		(3,929	)		(107,223	)
United States
ABIOMED, Inc.		(89,424	)		(4,626,798	)
Acadia Healthcare Co., Inc.		(83,909	)		(4,845,745	)
Actuant Corp.		(13,397	)		(309,605	)
Akorn, Inc.		(56,719	)		(2,415,095	)
Allegheny Technologies, Inc.		(259,789	)		(7,411,780	)
Allegiant Travel Co.		(12,008	)		(2,176,690	)
Alliance Data Systems Corp.		(5,696	)		(1,645,176	)
Amazon.com, Inc.		(40,924	)		(14,508,786	)
Amedisys, Inc.		(3,863	)		(108,859	)
Ameren Corp.		(91,998	)		(4,165,669	)
American Airlines Group, Inc.		(10,594	)		(519,954	)
American Eagle Outfitters, Inc.		(333,854	)		(4,687,310	)
Amsurg Corp.		(5,578	)		(307,794	)
Antero Resources Corp.		(2,485	)		(86,105	)
AptarGroup, Inc.		(5,208	)		(328,677	)
Arthur J Gallagher & Co.		(24,376	)		(1,083,026	)
athenahealth, Inc.		(79,894	)		(11,161,991	)
Avery Dennison Corp.		(139,063	)		(7,268,823	)
Axiall Corp.		(120,037	)		(5,311,637	)
Balchem Corp.		(26,007	)		(1,377,591	)
Bank of Hawaii Corp.		(7,941	)		(448,349	)

	Shares			Value
Reference Entity — Short
United States (continued)
Bio-Techne Corp.		(2,836	)	$	(263,805	)
The Boston Beer Co., Inc.		(183	)		(57,557	)
Boyd Gaming Corp.		(199,693	)		(2,607,991	)
Brady Corp., Class A Class A		(1,875	)		(49,069	)
Bristow Group, Inc.		(12,577	)		(700,665	)
Cabela’s, Inc.		(38,199	)		(2,099,035	)
Cablevision Systems Corp.		(180,656	)		(3,418,012	)
CACI International, Inc., Class A Class A		(1,582	)		(133,821	)
Caesars Entertainment Corp.		(100,670	)		(1,096,296	)
Campbell Soup Co.		(290,182	)		(13,272,925	)
CarMax, Inc.		(200,904	)		(12,476,138	)
Carnival Corp.		(113,246	)		(4,978,294	)
Casey’s General Stores, Inc.		(7,741	)		(706,753	)
Cerner Corp.		(55,353	)		(3,672,672	)
CLARCOR, Inc.		(58,539	)		(3,660,444	)
Clean Harbors, Inc.		(33,868	)		(1,602,634	)
Coach, Inc.		(251,228	)		(9,343,169	)
Cobalt International Energy, Inc.		(103,236	)		(941,512	)
The Coca-Cola Co.		(204,712	)		(8,427,993	)
Colfax Corp.		(10,073	)		(456,408	)
CommVault Systems, Inc.		(9,155	)		(398,975	)
comScore, Inc.		(63,434	)		(2,636,317	)
ConAgra Foods, Inc.		(200,205	)		(7,093,263	)
CONSOL Energy, Inc.		(28,273	)		(818,503	)
Constellation Brands, Inc.		(15,678	)		(1,731,635	)
Cornerstone OnDemand, Inc.		(3,154	)		(103,924	)
CoStar Group, Inc.		(18,459	)		(3,405,870	)
Coty, Inc., Class A		(354,316	)		(6,739,090	)
Cray, Inc.		(113,766	)		(3,696,257	)
Cree, Inc.		(14,613	)		(516,716	)
Crocs, Inc.		(213,134	)		(2,259,220	)
CVB Financial Corp.		(4,373	)		(63,890	)
Darden Restaurants, Inc.		(45,536	)		(2,795,000	)
Darling International, Inc.		(75,394	)		(1,280,190	)
Dealertrack Technologies, Inc.		(60,704	)		(2,440,301	)
Dean Foods Co.		(537,590	)		(9,741,131	)
Deere & Co.		(18,282	)		(1,557,444	)
Demandware, Inc.		(31,959	)		(1,711,724	)
Diebold, Inc.		(151,906	)		(4,739,467	)
Dillard’s, Inc., Class A Class A		(7,602	)		(863,587	)
Donaldson Co., Inc.		(22,859	)		(835,725	)
Eclipse Resources Corp.		(58,992	)		(365,750	)
Education Realty Trust, Inc.		(1	)		(46	)
Ellie Mae, Inc.		(2,242	)		(99,186	)
Enbridge Energy Management LLC		(23,592	)		(884,452	)
Energizer Holdings, Inc.		(965	)		(123,530	)
Essex Property Trust, Inc.		(11,394	)		(2,575,614	)
The EW Scripps Co.		(76,881	)		(1,516,862	)
ExamWorks Group, Inc.		(1,250	)		(46,200	)
Exxon Mobil Corp.		(15,334	)		(1,340,498	)
FireEye, Inc.		(12,474	)		(421,746	)
First Cash Financial Services, Inc.		(12,496	)		(621,301	)
First Niagara Financial Group, Inc.		(44,900	)		(364,588	)
FirstEnergy Corp.		(35,108	)		(1,415,906	)
FirstMerit Corp.		(14,177	)		(232,290	)
Five Below, Inc.		(135,172	)		(4,503,931	)
Flotek Industries, Inc.		(72,234	)		(1,168,024	)
Franklin Electric Co., Inc.		(28,742	)		(983,264	)
Generac Holdings, Inc.		(99,933	)		(4,371,069	)
Graham Holdings Co., Class B		(1,441	)		(1,347,796	)
Granite Construction, Inc.		(62,786	)		(2,139,747	)
Group 1 Automotive, Inc.		(26,057	)		(2,094,722	)
Groupon, Inc.		(290,745	)		(2,081,734	)
Guidewire Software, Inc.		(14,342	)		(718,534	)
Gulfport Energy Corp.		(20,175	)		(776,536	)
The Hain Celestial Group, Inc.		(7,912	)		(417,516	)

See Notes to Financial Statements.

38 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
United States (continued)
Healthcare Services Group, Inc.		(137,935	)	$	(4,346,332	)
Heartland Express, Inc.		(5,473	)		(140,601	)
HeartWare International, Inc.		(27,204	)		(2,272,350	)
HEICO Corp.		(2,134	)		(129,491	)
Hillenbrand, Inc.		(2,174	)		(68,285	)
HMS Holdings Corp.		(5,507	)		(108,956	)
Hospira, Inc.		(102,059	)		(6,473,602	)
Hudson City Bancorp, Inc.		(352,440	)		(3,161,387	)
iGATE Corp.		(1,102	)		(39,011	)
Impax Laboratories, Inc.		(9,981	)		(366,003	)
Imperva, Inc.		(1,933	)		(80,722	)
Infinera Corp.		(23,090	)		(372,211	)
Integra LifeSciences Holdings Corp.		(51,406	)		(2,864,342	)
Intrepid Potash, Inc.		(83,430	)		(1,110,453	)
IPG Photonics Corp.		(2,155	)		(160,849	)
j2 Global, Inc.		(32,362	)		(1,858,873	)
Jabil Circuit, Inc.		(10,632	)		(219,126	)
Janus Capital Group, Inc.		(302,787	)		(5,310,884	)
Kate Spade & Co.		(345,793	)		(10,902,853	)
KB Home		(195,771	)		(2,439,307	)
Kinder Morgan, Inc.		(180,922	)		(7,426,848	)
Life Time Fitness, Inc.		(36,220	)		(1,980,147	)
LinkedIn Corp.		(3,511	)		(789,062	)
Lithia Motors, Inc., Class A Class A		(574	)		(48,618	)
Loews Corp.		(49,879	)		(1,908,371	)
Louisiana-Pacific Corp.		(828,761	)		(13,566,818	)
Lumber Liquidators Holdings, Inc.		(14,954	)		(944,345	)
MarketAxess Holdings, Inc.		(3,170	)		(240,825	)
Marketo, Inc.		(54,292	)		(1,869,274	)
Martin Marietta Materials, Inc.		(69,292	)		(7,465,520	)
McDermott International, Inc.		(1,285,579	)		(2,892,553	)
McDonald’s Corp.		(73,607	)		(6,804,231	)
Medidata Solutions, Inc.		(78,427	)		(3,371,577	)
Mercury General Corp.		(19,693	)		(1,125,455	)
Mettler-Toledo International, Inc.		(4,851	)		(1,474,461	)
Monro Muffler Brake, Inc.		(84,832	)		(4,847,300	)
MSC Industrial Direct Co., Inc.		(23,671	)		(1,776,982	)
Navistar International Corp.		(97,864	)		(2,879,159	)
Neogen Corp.		(38,094	)		(1,756,133	)
Netflix, Inc.		(1,142	)		(504,536	)
NetSuite, Inc.		(35,117	)		(3,456,566	)
New York REIT, Inc.		(46,433	)		(484,296	)
The New York Times Co.		(102,923	)		(1,295,801	)
Nexstar Broadcasting Group, Inc.		(67,028	)		(3,344,362	)
Nimble Storage, Inc.		(2,269	)		(50,894	)
Ocwen Financial Corp.		(119,658	)		(732,307	)
Olin Corp.		(279,357	)		(7,003,480	)
Oracle Corp.		(339,409	)		(14,217,843	)
Palo Alto Networks, Inc.		(5,804	)		(733,568	)
Pandora Media, Inc.		(33,568	)		(557,229	)
Peabody Energy Corp.		(754,338	)		(4,699,526	)
Pinnacle Entertainment, Inc.		(247,483	)		(5,234,265	)
Plum Creek Timber Co., Inc.		(16,374	)		(728,971	)
Polaris Industries, Inc.		(4,624	)		(668,584	)
Post Holdings, Inc.		(73,623	)		(3,478,687	)
Precision Castparts Corp.		(29,142	)		(5,831,314	)
PriceSmart, Inc.		(8,267	)		(676,075	)
Proofpoint, Inc.		(54,246	)		(2,712,300	)
PVH Corp.		(11,432	)		(1,260,492	)
Ralph Lauren Corp.		(17,905	)		(2,988,165	)
RealPage, Inc.		(78,660	)		(1,416,667	)
Redwood Trust, Inc.		(214,637	)		(4,277,715	)
ResMed, Inc.		(15,316	)		(956,791	)
Restoration Hardware Holdings, Inc.		(16,786	)		(1,469,279	)

	Shares			Value
Reference Entity — Short
United States (concluded)
RLI Corp.		(2,877	)	$	(134,960	)
Royal Caribbean Cruises, Ltd.		(16,884	)		(1,275,586	)
SCANA Corp.		(5,827	)		(371,588	)
Schweitzer-Mauduit International, Inc.		(27,565	)		(1,071,176	)
Scientific Games Corp.		(13,267	)		(156,683	)
Select Medical Holdings Corp.		(5,266	)		(71,196	)
Sensient Technologies Corp.		(14,989	)		(914,329	)
ServiceNow, Inc.		(94,632	)		(6,898,673	)
Snyder’s-Lance, Inc.		(38,947	)		(1,132,968	)
Sotheby’s		(61,069	)		(2,598,486	)
The Southern Co.		(57,078	)		(2,894,996	)
The Spectranetics Corp.		(112,370	)		(3,675,623	)
Splunk, Inc.		(31,601	)		(1,632,192	)
Staples, Inc.		(413,323	)		(7,047,157	)
Starbucks Corp.		(126,003	)		(11,029,043	)
Stericycle, Inc.		(19,594	)		(2,572,496	)
Stifel Financial Corp.		(4,023	)		(189,684	)
SunEdison, Inc.		(214,439	)		(4,016,442	)
SYNNEX Corp.		(19,449	)		(1,442,921	)
Sysco Corp.		(175,993	)		(6,893,646	)
TAL International Group, Inc.		(75,559	)		(3,071,473	)
TECO Energy, Inc.		(20,015	)		(426,920	)
Tempur Sealy International, Inc.		(147,094	)		(8,094,583	)
Teradata Corp.		(2,772	)		(123,520	)
Tidewater, Inc.		(153,066	)		(4,478,711	)
Tiffany & Co.		(9,111	)		(789,377	)
Total System Services, Inc.		(26,043	)		(921,141	)
Tronox, Ltd., Class A Class A		(55,617	)		(1,175,743	)
Twitter, Inc.		(46,989	)		(1,763,497	)
Tyler Technologies, Inc.		(8,777	)		(931,064	)
UIL Holdings Corp.		(981	)		(45,126	)
Under Armour, Inc., Class A		(174,715	)		(12,593,457	)
United Bankshares, Inc.		(11,432	)		(386,516	)
United Natural Foods, Inc.		(3,512	)		(271,407	)
UnitedHealth Group, Inc.		(52,726	)		(5,602,138	)
Urban Edge Properties		(29,743	)		(706,087	)
US Ecology, Inc.		(20,979	)		(869,789	)
USG Corp.		(292,277	)		(8,899,835	)
UTi Worldwide, Inc.		(7,330	)		(87,007	)
Valley National Bancorp		(91,117	)		(827,342	)
Varian Medical Systems, Inc.		(8,940	)		(827,486	)
Veeco Instruments, Inc.		(98,767	)		(2,881,033	)
Verisk Analytics, Inc., Class A		(68,297	)		(4,394,912	)
ViaSat, Inc.		(41,734	)		(2,346,286	)
Vornado Realty Trust		(41,623	)		(4,596,844	)
WageWorks, Inc.		(6,314	)		(347,523	)
Wal-Mart Stores, Inc.		(120,315	)		(10,224,369	)
WellCare Health Plans, Inc.		(5,209	)		(379,476	)
The Western Union Co.		(10,532	)		(179,044	)
WEX, Inc.		(48,698	)		(4,482,651	)
WisdomTree Investments, Inc.		(47,435	)		(826,318	)
Wolverine World Wide, Inc.		(237,564	)		(6,687,427	)
Workday, Inc., Class A		(1,215	)		(96,544	)
WR Grace & Co.		(7,762	)		(672,810	)
Wright Medical Group, Inc.		(1,618	)		(39,495	)
XPO Logistics, Inc.		(127,502	)		(4,690,799	)
Yelp, Inc.		(6,717	)		(352,441	)
Zillow, Inc., Class A		(46,033	)		(4,461,518	)
Zynga, Inc., Class A		(520,483	)		(1,332,437	)
					(563,076,745	)
Total Reference Entity — Short					(590,355,031	)
Net Value of Reference Entity — Goldman Sachs & Co.				$	(44,832,941	)

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 39

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with UBS AG as of January 31, 2015, expiration date 2/12/15:

	Shares		Value
Reference Entity — Long
Australia
Aristocrat Leisure Ltd.		103,067	$	558,351
Arrium Ltd.		2,676,148		422,334
AusNet Services		415,522		451,025
Boral Ltd.		72,402		313,365
Caltex Australia Ltd.		28,259		731,350
CSR Ltd.		217,619		672,216
Dexus Property Group		152,718		912,043
Downer EDI Ltd.		136,182		442,172
Fairfax Media, Ltd.		3,427,254		2,384,087
iiNET, Ltd.		86,188		500,214
JB Hi-Fi Ltd.		341,439		4,425,936
Newcrest Mining Ltd.		98,140		1,059,663
Qantas Airways Ltd.		131,025		264,025
Rio Tinto Ltd.		187,493		8,360,703
Seven West Media Ltd.		74,723		75,739
Transpacific Industries Group, Ltd.		1,989,866		1,278,016
Woodside Petroleum Ltd.		2,825		75,391
				22,926,630
Austria
Andritz AG		9,907		536,280
Voestalpine AG		210,346		7,490,951
				8,027,231
Belgium
bpost SA		14,421		379,473
Canada
Agnico Eagle Mines Ltd.		113,762		3,835,338
Aimia, Inc.		229,013		2,456,478
Air Canada		78,795		728,607
Boardwalk Real Estate Investment Trust		18,158		876,391
Canadian National Railway Co.		5,210		343,261
Canadian Real Estate Investment Trust		40,290		1,528,908
Canfor Corp.		26,217		655,064
Capital Power Corp.		2,390		47,567
CCL Industries, Inc., Class B		30,817		3,185,499
Centerra Gold, Inc.		16,970		101,764
Cogeco Cable, Inc.		14,744		847,023
Detour Gold Corp.		54,959		562,263
Dominion Diamond Corp.		23,552		391,267
Domtar Corp.		63,732		2,441,547
Eldorado Gold Corp.		87,626		420,649
Emera, Inc.		183,777		6,013,573
Encana Corp.		6,123		74,881
Finning International, Inc.		23,518		387,741
Franco-Nevada Corp.		9,303		536,861
Goldcorp, Inc.		77,968		1,883,086
IAMGOLD Corp.		40,933		109,524
Kinross Gold Corp.		247,074		838,033
Linamar Corp.		86,140		4,934,391
Magna International, Inc.		20,047		1,926,134
Methanex Corp.		82,924		3,664,918
Onex Corp.		37,035		2,032,888
Open Text Corp.		124,862		7,080,787
Pan American Silver Corp.		10,385		121,609
Quebecor, Inc., Class B		1,765		44,240
Raging River Exploration, Inc.		186,065		1,080,633
Royal Bank of Canada		213,057		12,028,574
Silver Wheaton Corp.		22,184		509,602
Superior Plus Corp.		140,075		1,344,861
TELUS Corp.		373,220		12,802,912

	Shares		Value
Reference Entity — Long
Canada (concluded)
Vermilion Energy, Inc.		1,126	$	49,596
Yamana Gold, Inc.		111,037		459,632
				76,346,102
Denmark
Novo Nordisk A/S, Class B		150,785		6,720,589
Novozymes A/S, Class B		31,859		1,452,912
				8,173,501
France
EDF		121,228		3,286,365
Faurecia		22,100		887,677
Natixis		187,912		1,195,116
Societe Generale SA		424		17,026
Technicolor SA, Registered Shares		233,899		1,397,245
				6,783,429
Germany
Aareal Bank AG		1,137		43,054
Commerzbank AG		370,550		4,442,635
Continental AG		6,928		1,563,281
Duerr AG		55,516		5,052,581
Fresenius SE & Co. KGaA		77,586		4,440,768
Hochtief AG		7,940		552,191
K+S AG, Registered Shares		417,282		13,174,928
Kloeckner & Co. SE		56,163		578,671
Krones AG		1,089		103,099
LEG Immobilien AG		2,958		226,497
Nordex SE		28,952		558,780
ProSiebenSat.1 Media AG, Registered Shares		138,943		6,150,687
Salzgitter AG		46,470		1,266,810
ThyssenKrupp AG		47,358		1,230,298
United Internet AG, Registered Shares		25,385		1,099,683
Volkswagen AG, Preference Shares		3,316		739,759
				41,223,722
Hong Kong
Cheung Kong Holdings Ltd.		189,000		3,606,645
CLP Holdings Ltd.		384,000		3,428,187
Galaxy Entertainment Group Ltd.		315,000		1,645,302
Hutchison Whampoa Ltd.		234,000		3,105,994
Kerry Properties Ltd.		501,500		1,772,086
Li & Fung Ltd.		932,000		924,510
MGM China Holdings Ltd.		124,000		300,358
New World Development Co. Ltd.		1,323,000		1,577,344
Power Assets Holdings Ltd.		43,500		454,975
Shun Tak Holdings, Ltd.		92,000		42,043
Sino Land Co., Ltd.		114,000		190,642
Swire Properties Ltd.		62,400		200,331
Wheelock & Co. Ltd.		75,000		424,335
				17,672,752
Iran
Smurfit Kappa Group PLC		203,679		5,007,509
Ireland
Bank of Ireland		1,565,459		471,154
Kerry Group PLC, Class A		1,432		103,783
				574,937
Isle of Man
Playtech PLC		63,305		644,330
Italy
A2A SpA		255,359		243,382
Ansaldo STS SpA		26,559		266,890
Autogrill SpA		47,775		408,131

See Notes to Financial Statements.

40 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares		Value
Reference Entity — Long
Italy (concluded)
Moncler SpA		162,482	$	2,413,566
Telecom Italia SpA, Non-Convertible Savings Shares		1,069,436		1,009,940
				4,341,909
Japan
Asahi Group Holdings Ltd.		146,100		4,793,072
Casio Computer Co. Ltd.		116,300		1,820,655
Chubu Electric Power Co., Inc.		5,200		68,661
Citizen Holdings Co. Ltd.		5,700		45,498
COMSYS Holdings Corp.		363,800		4,949,231
CyberAgent, Inc.		76,900		3,386,046
Disco Corp.		82,100		7,521,466
Frontier Real Estate Investment Corp.		172		784,081
Fuji Electric Co. Ltd.		14,000		60,564
Fujitsu General Ltd.		200,000		1,961,757
Haseko Corp.		807,800		6,563,414
Hitachi Metals Ltd.		16,000		260,724
Hoya Corp.		59,500		2,305,778
Japan Airport Terminal Co., Ltd.		1,300		58,578
Japan Real Estate Investment Corp.		276		1,340,917
Kaken Pharmaceutical Co. Ltd.		17,000		361,737
Kanamoto Co. Ltd.		1,800		47,288
Keihin Corp.		87,500		1,394,696
Keyence Corp.		32,200		15,051,463
Kissei Pharmaceutical Co. Ltd.		8,800		263,992
Kyowa Exeo Corp.		58,600		618,444
Kyushu Electric Power Co., Inc.		112,300		1,083,713
Makita Corp.		7,900		350,417
Mazda Motor Corp.		22,600		464,214
Mitsubishi Chemical Holdings Corp.		12,700		65,822
Mitsubishi Corp.		42,500		741,421
Mitsubishi Gas Chemical Co., Inc.		153,000		691,767
Mitsubishi Materials Corp.		345,000		1,087,910
Mitsubishi Motors Corp.		694,900		5,874,827
Mitsui & Co. Ltd.		158,300		2,014,328
Mitsui Mining & Smelting Co. Ltd.		94,000		196,288
Murata Manufacturing Co. Ltd.		101,300		10,935,767
Nagoya Railroad Co. Ltd.		15,000		58,928
NH Foods Ltd.		101,000		2,496,933
Nifco, Inc.		35,700		1,229,758
Nihon M&A Center, Inc.		39,700		1,377,838
Nippo Corp.		32,000		497,583
Nippon Paper Industries Co., Ltd.		63,400		999,759
Nippon Steel & Sumitomo Metal		830,000		1,939,953
Nishimatsu Construction Co., Ltd.		11,000		44,189
Nisshin Steel Holdings Co. Ltd.		14,800		153,200
NSK Ltd.		95,000		1,113,266
Resona Holdings, Inc.		917,100		4,549,925
Senshu Ikeda Holdings, Inc.		77,300		343,246
Shikoku Electric Power Co., Inc.		7,600		95,570
Shinsei Bank Ltd.		369,000		668,821
Start Today Co., Ltd.		52,800		1,067,259
Sumitomo Dainippon Pharma Co. Ltd.		177,700		1,868,008
Sumitomo Metal Mining Co. Ltd.		349,000		4,987,934
Sumitomo Mitsui Trust Holdings, Inc.		3,804,000		13,376,863
Sumitomo Real Estate Sales Co. Ltd.		15,400		364,257
Taiheiyo Cement Corp.		231,000		677,836
Takashimaya Co. Ltd.		52,000		456,097
Takata Corp.		68,700		801,265
Temp Holdings Co., Ltd.		19,200		649,045
Tokyo Steel Manufacturing Co., Ltd.		33,400		250,983
TS Tech Co., Ltd.		29,300		738,213
Zenkoku Hosho Co., Ltd.		86,300		2,750,181
				120,721,446

	Shares		Value
Reference Entity — Long
Netherlands
Arcadis NV		56,790	$	1,718,766
Norway
Akastor ASA		202,663		498,267
Aker Solutions ASA		233,605		1,140,421
Norsk Hydro ASA		428,024		2,515,385
Seadrill Ltd.		76,575		818,356
Statoil ASA		374,648		6,273,960
Storebrand ASA		832,745		2,517,373
Subsea 7 SA		533,048		4,534,386
TGS Nopec Geophysical Co. ASA		901		20,899
				18,319,047
Portugal
CTT — Correios de Portugal SA		14,759		155,290
Singapore
CapitaCommercial Trust		1,372,300		1,795,514
ComfortDelGro Corp. Ltd.		630,700		1,337,402
Jardine Cycle & Carriage Ltd.		1,200		37,455
Noble Group Ltd.		6,982,000		5,461,634
Yangzijiang Shipbuilding Holdings Ltd.		2,321,000		2,121,807
				10,753,812
Spain
Abengoa SA, B Shares		136,137		402,226
Amadeus IT Holding SA, Class A		283,042		11,351,185
Banco Popular Espanol SA		966,267		4,084,412
Bankinter SA		6,482		45,034
CaixaBank SA		364,869		1,589,276
Ebro Foods SA		28,026		476,879
Ferrovial SA		54,648		1,084,155
Gamesa Corp. Tecnologica SA		45,689		451,715
Iberdrola SA		2,041,708		14,092,733
Mediaset Espana Comunicacion SA		55,515		675,848
Sacyr SA		126,812		468,984
Telefonica SA		1,562,488		23,430,139
				58,152,586
Sweden
Intrum Justitia AB		95,101		2,530,791
Switzerland
Glencore PLC		1,521,563		5,673,271
Kuehne & Nagel International AG, Registered Shares		309		42,605
				5,715,876
United Kingdom
Anglo American PLC		283,363		4,733,187
Domino’s Pizza Group PLC		19,037		193,260
Howden Joinery Group PLC		708,735		4,522,828
Inchcape PLC		44,567		465,543
International Consolidated Airlines Group SA		94,146		766,931
Pace PLC		54,771		274,874
Premier Oil PLC		506,988		1,099,195
Rio Tinto PLC		165,076		7,253,931
Thomas Cook Group PLC		217,515		417,640
Vedanta Resources PLC		43,247		241,664
				19,969,053
United States
Tahoe Resources, Inc.		2,996		40,884
Total Reference Entity — Long				430,179,076

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 41

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
Australia
ALS Ltd.		(1,173,368	)	$	(4,430,537	)
Ansell, Ltd.		(150,758	)		(2,646,210	)
APA Group		(475,099	)		(2,994,911	)
Bendigo and Adelaide Bank, Ltd.		(860,928	)		(8,915,801	)
Coca-Cola Amatil Ltd.		(1,450,965	)		(10,890,739	)
Cochlear, Ltd.		(999	)		(64,209	)
G8 Education, Ltd.		(796,790	)		(2,585,737	)
Harvey Norman Holdings Ltd.		(1,493,256	)		(4,560,822	)
Healthscope, Ltd.		(61,525	)		(128,689	)
Iluka Resources, Ltd.		(215,041	)		(1,167,812	)
Incitec Pivot, Ltd.		(3,031,212	)		(8,454,424	)
Metcash Ltd.		(3,444,319	)		(3,888,230	)
Oil Search, Ltd.		(288,421	)		(1,735,650	)
Tatts Group, Ltd.		(2,150,284	)		(6,435,175	)
TPG Telecom, Ltd.		(391,263	)		(2,023,638	)
					(60,922,584	)
Austria
Verbund AG		(17,479	)		(305,929	)
Belgium
Anheuser-Busch InBev NV		(186,657	)		(22,765,821	)
Canada
Agrium, Inc.		(46,395	)		(4,949,847	)
Alimentation Couche-Tard, Inc.		(132,988	)		(5,210,886	)
AltaGas, Ltd.		(55,544	)		(1,876,965	)
Bank of Montreal		(47,648	)		(2,734,688	)
Canadian Utilities, Ltd.		(72,988	)		(2,419,914	)
Cineplex, Inc.		(1,700	)		(60,457	)
Concordia Healthcare Corp.		(991	)		(42,839	)
George Weston, Ltd.		(28,020	)		(2,220,960	)
Gildan Activewear, Inc.		(73,288	)		(4,278,354	)
Husky Energy, Inc.		(7,666	)		(165,000	)
Inter Pipeline, Ltd.		(9,133	)		(237,471	)
Manitoba Telecom Services, Inc.		(204,962	)		(4,137,306	)
Mullen Group, Ltd.		(218,346	)		(3,503,640	)
Norbord, Inc.		(112,347	)		(2,500,333	)
Northland Power, Inc.		(52,065	)		(700,646	)
Paramount Resources, Ltd.		(71,762	)		(1,610,085	)
Pembina Pipeline Corp.		(33,306	)		(1,034,800	)
Saputo, Inc.		(63,757	)		(1,833,384	)
					(39,517,575	)
Finland
Nokia OYJ		(37,753	)		(290,341	)
Outokumpu OYJ		(22,745	)		(123,420	)
					(413,761	)
France
Air Liquide SA		(10,607	)		(1,337,208	)
Bollore SA		(100	)		(430	)
Cie de Saint-Gobain		(7,709	)		(328,409	)
Dassault Systemes		(1,424	)		(87,997	)
Kering		(37,320	)		(7,529,805	)
Orpea		(720	)		(46,937	)
Peugeot SA		(3,354	)		(8,554	)
Remy Cointreau SA		(36,894	)		(2,730,643	)
Rubis SCA		(14,759	)		(855,946	)
Total SA		(1,868	)		(96,043	)
					(13,021,972	)
Germany
Leoni AG		(21,980	)		(1,371,242	)
Rheinmetall AG		(17,561	)		(759,926	)
					(2,131,168	)

	Shares			Value
Reference Entity — Short
Hong Kong
Chow Tai Fook Jewellery Group, Ltd.		(22,600	)	$	(29,963	)
Esprit Holdings Ltd.		(27,500	)		(30,949	)
Hong Kong & China Gas Co., Ltd.		(187,000	)		(428,223	)
Melco International Development, Ltd.		(1,252,000	)		(2,492,825	)
Sun Hung Kai Properties, Ltd.		(35,000	)		(569,531	)
Swire Pacific, Ltd.		(4,000	)		(53,566	)
WH Group, Ltd.		(379,500	)		(215,394	)
					(3,820,451	)
Italy
Saipem SpA		(17,471	)		(158,530	)
Yoox SpA		(81,184	)		(1,756,610	)
					(1,915,140	)
Japan
Acom Co., Ltd.		(552,200	)		(1,502,222	)
Aeon Co. Ltd.		(22,000	)		(232,367	)
AEON Financial Service Co., Ltd.		(45,300	)		(814,052	)
Asahi Glass Co., Ltd.		(328,000	)		(1,744,955	)
Asics Corp.		(2,600	)		(63,802	)
Coca-Cola East Japan Co. Ltd.		(33,900	)		(564,434	)
Coca-Cola West Co., Ltd.		(20,400	)		(291,787	)
Cosmos Pharmaceutical Corp.		(3,000	)		(483,401	)
Daihatsu Motor Co. Ltd.		(37,400	)		(521,523	)
Daikin Industries, Ltd.		(5,100	)		(354,888	)
Dena Co., Ltd.		(205,600	)		(2,703,582	)
Don Quijote Holdings Co., Ltd.		(1,500	)		(109,211	)
Eisai Co., Ltd.		(351,000	)		(17,500,270	)
Hokuriku Electric Power Co.		(45,500	)		(643,012	)
House Foods Group, Inc.		(8,100	)		(162,052	)
Ibiden Co., Ltd.		(30,400	)		(457,014	)
IHI Corp.		(739,000	)		(3,850,241	)
IT Holdings Corp.		(12,800	)		(212,613	)
Iwatani Corp.		(28,000	)		(180,765	)
Japan Exchange Group, Inc.		(32,200	)		(749,309	)
Japan Retail Fund Investment Corp.		(600	)		(1,299,658	)
The Japan Steel Works, Ltd.		(78,000	)		(312,015	)
Kagome Co., Ltd.		(39,700	)		(628,705	)
Kajima Corp.		(79,000	)		(312,565	)
Kansai Paint Co., Ltd.		(21,000	)		(367,044	)
Kao Corp.		(14,200	)		(622,642	)
Keisei Electric Railway Co., Ltd.		(25,000	)		(322,051	)
Kenedix Office Investment Corp.		(154	)		(914,528	)
Kirin Holdings Co., Ltd.		(102,900	)		(1,385,467	)
Konami Corp.		(2,700	)		(50,378	)
Kubota Corp.		(6,000	)		(89,072	)
Kurita Water Industries Ltd.		(11,200	)		(238,599	)
Kyocera Corp.		(127,400	)		(5,607,467	)
Kyowa Hakko Kirin Co., Ltd.		(15,000	)		(170,813	)
McDonald’s Holdings Co. Japan Ltd.		(92,200	)		(2,022,326	)
Mitsui Engineering & Shipbuilding Co. Ltd.		(618,000	)		(1,004,743	)
Nabtesco Corp.		(1,800	)		(46,470	)
NGK Insulators, Ltd.		(121,000	)		(2,438,300	)
NHK Spring Co., Ltd.		(31,800	)		(286,830	)
Nikon Corp.		(5,500	)		(69,786	)
Nippon Electric Glass Co. Ltd.		(181,000	)		(934,147	)
Nippon Paint Co., Ltd.		(110,300	)		(3,455,173	)
Nippon Shinyaku Co., Ltd.		(5,000	)		(165,171	)
The Nishi-Nippon City Bank, Ltd.		(69,000	)		(224,068	)
Nomura Real Estate Office Fund, Inc.		(315	)		(1,609,680	)
Ono Pharmaceutical Co., Ltd.		(11,700	)		(1,231,356	)
Onward Holdings Co. Ltd.		(62,000	)		(399,829	)
Orix JREIT, Inc.		(447	)		(669,830	)
Osaka Gas Co., Ltd.		(67,000	)		(264,090	)
Pigeon Corp.		(3,300	)		(206,047	)
Pola Orbis Holdings, Inc.		(8,700	)		(370,484	)

See Notes to Financial Statements.

42 BLACKROCK FUNDS JANUARY 31, 2015

Schedule of Investments (continued) BlackRock Global Long/Short Equity Fund

	Shares			Value
Reference Entity — Short
Japan (concluded)
Rakuten, Inc.		(8,000	)	$	(110,754	)
Rengo Co., Ltd.		(70,000	)		(294,109	)
Sankyo Co., Ltd.		(3,100	)		(111,414	)
Santen Pharmaceutical Co., Ltd.		(7,000	)		(436,832	)
Sega Sammy Holdings, Inc.		(9,400	)		(122,409	)
Sekisui House, Ltd.		(6,100	)		(78,882	)
Shimadzu Corp.		(111,000	)		(1,153,272	)
Shimamura Co. Ltd.		(1,700	)		(151,217	)
Shimizu Corp.		(84,000	)		(579,570	)
Showa Shell Sekiyu KK		(13,700	)		(133,706	)
Sohgo Security Services Co., Ltd.		(10,700	)		(273,860	)
Sony Corp.		(172,400	)		(4,055,034	)
Sumco Corp.		(249,400	)		(4,185,634	)
Sumitomo Forestry Co., Ltd.		(14,700	)		(136,724	)
Taiyo Nippon Sanso Corp.		(5,000	)		(59,904	)
Teijin Ltd.		(73,000	)		(217,456	)
Terumo Corp.		(6,100	)		(151,274	)
Tokyo Gas Co., Ltd.		(244,000	)		(1,455,488	)
Toyo Tire & Rubber Co., Ltd.		(42,600	)		(959,505	)
Toyota Tsusho Corp.		(77,900	)		(1,844,869	)
Tsumura & Co.		(9,400	)		(213,906	)
Ushio, Inc.		(4,800	)		(55,609	)
Yamada Denki Co. Ltd.		(750,100	)		(2,786,720	)
Yamazaki Baking Co., Ltd.		(21,000	)		(309,183	)
					(80,738,165	)
Luxembourg
APERAM		(276,068	)		(7,166,603	)
Millicom International Cellular SA		(9,421	)		(600,782	)
					(7,767,385	)
Macau
Wynn Macau, Ltd.		(72,800	)		(201,594	)
Netherlands
Akzo Nobel NV		(8,213	)		(591,675	)
OCI		(216,598	)		(7,626,154	)
Randstad Holding NV		(1,957	)		(102,868	)
SBM Offshore NV		(210,291	)		(2,294,350	)
TomTom NV		(25,197	)		(165,570	)
					(10,780,617	)
Norway
Opera Software ASA		(35,215	)		(466,505	)
Portugal
Jeronimo Martins SGPS SA		(498,622	)		(5,363,359	)
Singapore
Genting Singapore PLC		(1,878,000	)		(1,497,356	)
Golden Agri-Resources Ltd.		(6,510,000	)		(2,019,423	)
Singapore Press Holdings, Ltd.		(31,200	)		(95,148	)
Suntec Real Estate Investment Trust		(3,202,600	)		(4,443,061	)
					(8,054,988	)

	Shares			Value
Reference Entity — Short
Sweden
Assa Abloy AB		(76,307	)	$	(4,167,425	)
Elekta AB, -B Shares		(439,428	)		(4,716,010	)
Getinge AB, -B Shares		(19,833	)		(488,834	)
Hexagon AB, -B Shares		(29,097	)		(921,298	)
ICA Gruppen AB		(4,473	)		(171,859	)
SKF AB, -B Shares		(37,222	)		(877,392	)
					(11,342,818	)
Switzerland
Barry Callebaut AG		(60	)		(59,827	)
Dufry AG		(63,791	)		(9,371,042	)
Holcim Ltd.		(38,619	)		(2,699,966	)
SGS SA		(1,561	)		(2,961,051	)
STMicroelectronics NV		(260,052	)		(2,159,306	)
Sulzer AG		(5,382	)		(569,847	)
The Swatch Group AG		(321	)		(128,267	)
					(17,949,306	)
United Kingdom
Aggreko PLC		(177,726	)		(4,144,931	)
Associated British Foods PLC		(5,405	)		(252,074	)
AVEVA Group PLC		(38,856	)		(768,433	)
Carnival PLC		(94,280	)		(4,221,023	)
Centrica PLC		(1,516,301	)		(6,691,476	)
CNH Industrial NV		(127,366	)		(969,608	)
Drax Group PLC		(37,100	)		(201,303	)
easyJet PLC		(109,230	)		(3,045,647	)
Greene King PLC		(137,677	)		(1,739,506	)
Hargreaves Lansdown PLC		(323,950	)		(4,910,635	)
ICAP PLC		(20,518	)		(144,078	)
Michael Page International PLC		(108,468	)		(759,005	)
Mitie Group PLC		(42,605	)		(173,066	)
Ocado Group PLC		(1,286,721	)		(7,930,166	)
Serco Group PLC		(61,225	)		(142,383	)
Sports Direct International PLC		(352,572	)		(3,760,150	)
Standard Life PLC		(185,632	)		(1,121,559	)
Telecity Group PLC		(209,520	)		(2,714,390	)
Tesco PLC		(5,715,745	)		(19,328,719	)
Unilever NV		(191,979	)		(8,325,098	)
Vodafone Group PLC		(2,813,258	)		(9,892,759	)
Whitbread PLC		(65,943	)		(4,949,736	)
					(86,185,745	)
United States
Samsonite International SA		(74,400	)		(225,795	)
Total Reference Entity — Short					(373,890,678	)
Net Value of Reference Entity — UBS AG				$	56,288,398

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 43

Schedule of Investments (concluded) BlackRock Global Long/Short Equity Fund

• Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. 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. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

• Level 1 — unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the 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)

• Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

As of January 31, 2015, the following table summarizes the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks		—	$	1,753,122		—	$	1,753,122
Preferred Securities		—		—	$	5,458,474		5,458,474
Short-Term Securities	$	1,684,084,362		—		—		1,684,084,362
Total	$	1,684,084,362	$	1,753,122	$	5,458,474	$	1,691,295,958
	Level 1		Level 2		Level 3		Total
Derivative Financial Instruments1
Assets:
Equity Contracts		—	$	39,148,747		—	$	39,148,747

¹ Derivative financial instruments are swaps, which are valued at the unrealized appreciation/depreciation on the instrument.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of January 31, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Cash pledged as collateral for financial futures contracts	$	27,397		—			—	$	27,397
Cash pledged as collateral for OTC derivatives		—	$	10,043,245			—		10,043,245
Liabilities:
Cash received as collateral for OTC swaps		—		(28,227,615	)		—		(28,227,615	)
Total	$	27,397	$	(18,184,370	)		—	$	(18,156,973	)
Total	$	1,684,084,362	$	1,753,122		$	5,458,474	$	1,691,295,958

During the six months ended January 31, 2015, there were no transfers between levels.

See Notes to Financial Statements.

44 BLACKROCK FUNDS JANUARY 31, 2015

Statements of Assets and Liabilities

January 31, 2015 (Unaudited)	BlackRock Emerging Markets Long/Short Equity Fund			BlackRock Global Long/Short Equity Fund
Assets
Investments at value — affiliated1	$	506,787,730		$	1,684,084,362
Investments at value — unaffiliated2		—			7,211,596
Cash pledged as collateral for OTC derivatives		—			10,043,245
Cash pledged as collateral for financial futures contracts		—			27,397
Unrealized appreciation on OTC swaps		10,913,772			40,774,757
Capital shares sold receivable		3,007,531			13,299,578
Swap receivable		—			971,120
Prepaid expenses		54,684			233,436
Total assets		520,763,717			1,756,645,491
Liabilities
Cash received as collateral for OTC swaps		11,485,093			28,227,615
Capital shares redeemed payable		2,559,512			17,504,472
Investment advisory fees payable		622,689			2,037,231
Swap payable		1,536,978			—
Unrealized depreciation on OTC derivatives		—			1,626,010
Administration fees payable		27,195			87,096
Service and distribution fees payable		18,046			143,622
Recoupment payable		2,092			45,163
Other accrued expenses payable		411,013			324,368
Total liabilities		16,662,618			49,995,577
Net Assets	$	504,101,099		$	1,706,649,914
Net Assets Consist of
Paid-in capital	$	508,372,901		$	1,680,281,388
Accumulated net investment loss		(10,557,262	)		(23,922,752	)
Accumulated net realized gain (loss)		(4,628,312	)		9,915,392
Net unrealized appreciation/depreciation		10,913,772			40,375,886
Net Assets	$	504,101,099		$	1,706,649,914
Net Asset Value
Institutional:
Net assets	$	461,619,199		$	1,355,832,614
Shares outstanding3		44,708,888			114,231,832
Net asset value	$	10.32		$	11.87
Investor A:
Net assets	$	29,954,727		$	244,279,149
Shares outstanding3		2,919,632			20,686,618
Net asset value	$	10.26		$	11.81
Investor C:
Net assets	$	12,527,173		$	106,538,151
Shares outstanding3		1,246,857			9,151,868
Net asset value	$	10.05		$	11.64
1  Investments at cost — affiliated	$	506,787,730		$	1,684,084,362
2  Investments at cost — unaffiliated		—		$	5,972,355
3  Unlimited number of shares authorized, $0.001 par value.

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 45

Statements of Operations

Six Months Ended January 31, 2015 (Unaudited)	BlackRock Emerging Markets Long/Short Equity Fund			BlackRock Global Long/Short Equity Fund
Investment Income
Dividends — affiliated	$	143,783		$	419,111
Expenses
Investment advisory		4,194,298			11,693,278
Administration		192,885			478,947
Service — Investor A		47,971			304,967
Service and distribution — Investor C		74,191			538,863
Transfer agent — Institutional		498,879			335,854
Transfer agent — Investor A		34,127			98,319
Transfer agent — Investor C		9,924			41,605
Administration — Institutional		60,676			111,307
Administration — Investor A		4,685			29,610
Administration — Investor C		1,795			13,038
Professional		48,133			41,405
Registration		42,957			217,955
Accounting services		12,090			32,612
Printing		18,303			19,603
Officer and Trustees		8,482			19,314
Custodian		4,054			14,061
Miscellaneous		49,951			38,227
Recoupment of past waived fees		—			5,855
Recoupment of past waived fees — class specific		2,092			39,309
Total expenses		5,305,493			14,074,129
Less fees waived by Manager		(192,423	)		(541,873	)
Less administration fees waived — Institutional		(53,797	)		—
Less administration fees waived — Investor A		(2,974	)		(1,006	)
Less administration fees waived — Investor C		(72	)		(347	)
Less transfer agent fees waived and/or reimbursed — Institutional		(39,889	)		—
Less transfer agent fees waived and/or reimbursed — Investor A		(966	)		(3,431	)
Less transfer agent fees waived and/or reimbursed — Investor C		(2	)		(35	)
Total expenses after fees waived and/or reimbursed		5,015,370			13,527,437
Net investment loss		(4,871,587	)		(13,108,326	)
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Futures		—			1,666,868
Swaps		28,815,594			32,708,450
Foreign currency transactions		—			(291,940	)
		28,815,594			34,083,378
Net change in unrealized appreciation/depreciation on:
Futures		—			325,958
Investments		—			1,239,241
Swaps		(24,283,961	)		9,241,655
Foreign currency translations		—			(5,235	)
		(24,283,961	)		10,801,619
Total realized and unrealized gain		4,531,633			44,884,997
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(339,954	)	$	31,776,671

See Notes to Financial Statements.

46 BLACKROCK FUNDS JANUARY 31, 2015

Statements of Changes in Net Assets

	BlackRock Emerging Markets Long/Short Equity Fund						BlackRock Global Long/Short Equity Fund
Increase (Decrease) in Net Assets:	Six Months Ended January 31, 2015 (Unaudited)			Year Ended July 31, 2014			Six Months Ended January 31, 2015 (Unaudited)			Year Ended July 31, 2014
Operations
Net investment loss	$	(4,871,587	)	$	(11,209,040	)	$	(13,108,326	)	$	(12,719,452	)
Net realized gain (loss)		28,815,594			(12,363,207	)		34,083,378			(17,573,067	)
Net change in unrealized appreciation/depreciation		(24,283,961	)		372,947			10,801,619			27,533,471
Net increase (decrease) in net assets resulting from operations		(339,954	)		(23,199,300	)		31,776,671			(2,759,048	)
Distributions to Shareholders From1
Net realized gain:
Institutional		—			(2,508,489	)		(1,390,162	)		(2,871,413	)
Investor A		—			(821,490	)		(265,166	)		(1,430,461	)
Investor C		—			(57,381	)		(120,722	)		(398,135	)
Decrease in net assets resulting from distributions to shareholders		—			(3,387,360	)		(1,776,050	)		(4,700,009	)
Capital Share Transactions
Net increase (decrease) in net assets derived from capital share transactions		(85,755,110	)		(4,439,808	)		276,017,632			1,324,792,573
Net Assets
Total increase (decrease) in net assets		(86,095,064	)		(31,026,468	)		306,018,253			1,317,333,516
Beginning of period		590,196,163			621,222,631			1,400,631,661			83,298,145
End of period	$	504,101,099		$	590,196,163		$	1,706,649,914		$	1,400,631,661
Accumulated net investment loss, end of period	$	(10,557,262	)	$	(5,685,675	)	$	(23,922,752	)	$	(10,814,426	)

¹   Distributions for annual periods are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 47

Financial Highlights BlackRock Emerging Markets Long/Short Equity Fund

	Institutional
				Year Ended July 31,
	Six Months Ended January 31, 2015 (Unaudited)			2014			2013			Period October 6, 20111 to July 31, 2012
Per Share Operating Performance
Net asset value, beginning of period	$	10.34		$	10.73		$	10.73		$	10.00
Net investment loss2		(0.09	)		(0.18	)		(0.17	)		(0.14	)
Net realized and unrealized gain (loss)		0.07			(0.15	)		0.21			0.89
Net increase (decrease) from investment operations		(0.02	)		(0.33	)		0.04			0.75
Distributions from:3
Net investment income		—			—			—			(0.02	)
Net realized gain		—			(0.06	)		(0.04	)		—
Total distributions		—			(0.06	)		(0.04	)		(0.02	)
Net asset value, end of period	$	10.32		$	10.34		$	10.73		$	10.73
Total Return4
Based on net asset value		(0.19)%	5		(3.09)%			0.33%			7.47%	5
Ratios to Average Net Assets
Total expenses6		1.86%	7		1.85%			1.84%			2.13%	7,8
Total expenses excluding recoupment of past fees waived6		1.86%	7		1.84%			1.81%			2.13%	7
Total expenses after fees waived and/or reimbursed6		1.75%	7		1.75%			1.71%			1.75%	7
Net investment loss6		(1.70)%	7		(1.72)%			(1.61)%			(1.61)%	7
Supplemental Data
Net assets, end of period (000)	$	461,619		$	509,665		$	433,886		$	126,707

¹ Commencement of operations.

² Based on average shares outstanding.

³ Distributions for annual periods are determined in accordance with federal income tax regulations.

⁴ Where applicable, assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Ratios do not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.18%.

⁷ Annualized.

⁸ Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.15%.

See Notes to Financial Statements.

48 BLACKROCK FUNDS JANUARY 31, 2015

Financial Highlights (continued) BlackRock Emerging Markets Long/Short Equity Fund

	Investor A
				Year Ended July 31,
	Six Months Ended January 31, 2015 (Unaudited)			2014			2013			Period October 6, 20111 to July 31, 2012
Per Share Operating Performance
Net asset value, beginning of period	$	10.29		$	10.69		$	10.71		$	10.00
Net investment loss2		(0.10	)		(0.20	)		(0.20	)		(0.16	)
Net realized and unrealized gain (loss)		0.07			(0.15	)		0.21			0.88
Net increase (decrease) from investment operations		(0.03	)		(0.35	)		0.01			0.72
Distributions from:3
Net investment income		—			—			—			(0.01	)
Net realized gain		—			(0.05	)		(0.03	)		—
Total distributions		—			(0.05	)		(0.03	)		(0.01	)
Net asset value, end of period	$	10.26		$	10.29		$	10.69		$	10.71
Total Return4
Based on net asset value		(0.29)%	5		(3.27)%			0.12%			7.24%	5
Ratios to Average Net Assets
Total expenses6		2.09%	7		2.01%			2.03%			2.19%	7,8
Total expenses excluding recoupment of past fees waived6		2.09%	7		2.00%			2.01%			2.19%	7
Total expenses after fees waived and/or reimbursed6		2.00%	7		1.94%			1.95%			2.00%	7
Net investment loss6		(1.95)%	7		(1.91)%			(1.85)%			(1.85)%	7
Supplemental Data
Net assets, end of period (000)	$	29,955		$	64,400		$	166,701		$	57,655

¹ Commencement of operations.

² Based on average shares outstanding.

³ Distributions for annual periods are determined in accordance with federal income tax regulations.

⁴ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Ratios do not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.18%.

⁷ Annualized.

⁸ Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.20%.

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 49

Financial Highlights (concluded) BlackRock Emerging Markets Long/Short Equity Fund

	Investor C
				Year Ended July 31,
	Six Months Ended January 31, 2015 (Unaudited)			2014			2013			Period October 6, 20111 to July 31, 2012
Per Share Operating Performance
Net asset value, beginning of period	$	10.11		$	10.56		$	10.65		$	10.00
Net investment loss2		(0.14	)		(0.27	)		(0.28	)		(0.22	)
Net realized and unrealized gain (loss)		0.08			(0.15	)		0.21			0.87
Net increase (decrease) from investment operations		(0.06	)		(0.42	)		(0.07	)		0.65
Distributions from net realized gain3		—			(0.03	)		(0.02	)		(0.00	)4
Net asset value, end of period	$	10.05		$	10.11		$	10.56		$	10.65
Total Return5
Based on net asset value		(0.59)%	6		(3.99)%			(0.70	)%		6.53%	6
Ratios to Average Net Assets
Total expenses7		2.81%	8		2.79%			2.81%			3.00%	8,9
Total expenses excluding recoupment of past fees waived7		2.79%	8		2.78%			2.77%			3.00%	8
Total expenses after fees waived and/or reimbursed7		2.74%	8		2.72%			2.72%			2.75%	8
Net investment loss7		(2.69)%	8		(2.68)%			(2.62)%			(2.61)%	8
Supplemental Data
Net assets, end of period (000)	$	12,527		$	$16,131		$	$20,636		$	$10,196

¹ Commencement of operations.

² Based on average shares outstanding.

³ Distributions for annual periods are determined in accordance with federal income tax regulations.

⁴ Amount is greater than $(0.005) per share.

⁵ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁶ Aggregate total return.

⁷ Ratios do not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.18%.

⁸ Annualized.

⁹ Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 3.00%.

See Notes to Financial Statements.

50 BLACKROCK FUNDS JANUARY 31, 2015

Financial Highlights BlackRock Global Long/Short Equity Fund

	Institutional
	Six Months Ended January 31, 2015 (Unaudited)			Year Ended July 31, 2014			Period December 20, 20121 to July 31, 2013
Per Share Operating Performance
Net asset value, beginning of period	$	11.61		$	11.29		$	10.00
Net investment loss2		(0.09	)		(0.19	)		(0.11	)
Net realized and unrealized gain		0.36			0.66			1.40
Net increase from investment operations		0.27			0.47			1.29
Distributions from net realized gains3		(0.01	)		(0.15	)		—
Net asset value, end of period	$	11.87		$	11.61		$	11.29
Total Return4
Based on net asset value		2.35%	5		4.13%			12.90%	5
Ratios to Average Net Assets
Total expenses6		1.65%	7		1.71%			2.67%	7,8
Total expenses excluding recoupment of past fees waived6		1.65%	7		1.69%			2.67%	7
Total expenses after fees waived and/or reimbursed6		1.58%	7		1.64%			1.75%	7
Net investment loss6		(1.53)%	7		(1.61)%			(1.67)%	7
Supplemental Data
Net assets, end of period (000)	$	1,355,833		$	1,005,213		$	65,630

¹ Commencement of operations.

² Based on average shares outstanding.

³ Distributions for annual periods are determined in accordance with federal income tax regulations.

⁴ Where applicable, assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Ratios do not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.18%.

⁷ Annualized.

⁸ Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.94%.

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 51

Financial Highlights (continued) BlackRock Global Long/Short Equity Fund

	Investor A
	Six Months Ended January 31, 2015 (Unaudited)			Year Ended July 31, 2014			Period December 20, 20121 to July 31, 2013
Per Share Operating Performance
Net asset value, beginning of period	$	11.57		$	11.28		$	10.00
Net investment loss2		(0.11	)		(0.21	)		(0.14	)
Net realized and unrealized gain		0.36			0.64			1.42
Net increase from investment operations		0.25			0.43			1.28
Distributions from net realized gains3		(0.01	)		(0.14	)		—
Net asset value, end of period	$	11.81		$	11.57		$	11.28
Total Return4
Based on net asset value		2.19%	5		3.82%			12.80%	5
Ratios to Average Net Assets
Total expenses6		1.96%	7		1.97%			2.30%	7,8
Total expenses excluding recoupment of past fees waived6		1.93%	7		1.95%			2.30%	7
Total expenses after fees waived and/or reimbursed6		1.88%	7		1.89%			2.00%	7
Net investment loss6		(1.83)%	7		(1.86)%			(1.95)%	7
Supplemental Data
Net assets, end of period (000)	$	244,279		$	294,439		$	15,076

¹ Commencement of operations.

² Based on average shares outstanding.

³ Distributions for annual periods are determined in accordance with federal income tax regulations.

⁴ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Ratios do not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.18%.

⁷ Annualized.

⁸ Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.57%.

See Notes to Financial Statements.

52 BLACKROCK FUNDS JANUARY 31, 2015

Financial Highlights (concluded) BlackRock Global Long/Short Equity Fund

	Investor C
	Six Months Ended January 31, 2015 (Unaudited)			Year Ended July 31, 2014			Period December 20, 20121 to July 31, 2013
Per Share Operating Performance
Net asset value, beginning of period	$	11.45		$	11.23		$	10.00
Net investment loss2		(0.15	)		(0.30	)		(0.19	)
Net realized and unrealized gain		0.35			0.65			1.42
Net increase from investment operations		0.20			0.35			1.23
Distributions from net realized gains3		(0.01	)		(0.13	)		—
Net asset value, end of period	$	11.64		$	11.45		$	11.23
Total Return4
Based on net asset value		1.77%	5		3.07%			12.30%	5
Ratios to Average Net Assets
Total expenses6		2.69%	7		2.72%			3.09%	7,8
Total expenses excluding recoupment of past fees waived6		2.68%	7		2.70%			3.09%	7
Total expenses after fees waived and/or reimbursed6		2.62%	7		2.64%			2.75%	7
Net investment loss6		(2.57)%	7		(2.61)%			(2.70)%	7
Supplemental Data
Net assets, end of period (000)	$	106,538		$	$100,980		$	2,592

¹ Commencement of operations.

² Based on average shares outstanding.

³ Distributions for annual periods are determined in accordance with federal income tax regulations.

⁴ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁵ Aggregate total return.

⁶ Ratios do not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.18%.

⁷ Annualized.

⁸ Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 3.36%.

See Notes to Financial Statements.

BLACKROCK FUNDS JANUARY 31, 2015 53

Notes to Financial Statements  (Unaudited)

1. Organization:

BlackRock Funds^SM (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Massachusetts business trust. The Board of Trustees of the Trust are referred to throughout this report as the “Board of Trustees” or the “Board.” The following are referred to herein collectively as the “Funds” or individually, a “Fund”:

Fund Name	Herein Referred To As	Diversification Classification
BlackRock Emerging Markets Long/Short Equity Fund	Emerging Markets Long/Short Equity	Diversified
BlackRock Global Long/Short Equity Fund	Global Long/Short Equity	Diversified

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 each bears certain expenses and may have a conversion privilege as outlined below. Institutional Shares are sold only to certain eligible investors. Investor A and Investor C Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures.

Share Class	Initial Sales Charge	CDSC	Conversion Privilege
Institutional Shares	No	No	None
Investor A Shares	Yes	No1	None
Investor C Shares	No	Yes	None

¹ Investor A Shares may be subject to a CDSC where no initial sales charge was paid at the time of purchase.

2. Significant Accounting Policies:

The Funds’ 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 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. The following is a summary of significant accounting policies followed by the Funds:

Valuation: The Funds’ investments are valued at fair value as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Funds for all financial instruments.

Equity investments traded on a recognized securities exchange are valued at the official close each day, if available. For equity investments traded on more than one exchange, the official close price on the exchange where the stock is primarily traded is used. 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. Swap agreements are valued utilizing quotes received daily by the Funds’ pricing service 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. Certain centrally cleared swaps are valued at the price determined by the relevant exchange or clearinghouse. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at net asset value (“NAV”) each business day.

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 business on the NYSE. Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

In the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Investments”). When determining the price for Fair Value Investments, the Global Valuation Committee, or its delegate, 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 Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement, which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. The market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and is adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or

54 BLACKROCK FUNDS JANUARY 31, 2015

Notes to Financial Statements (continued)

asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Funds’ pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of the Funds’ net assets. If events (e.g., a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such instruments, those instruments may be Fair Value Investments and be valued at their fair value, as determined in good faith by the Global Valuation Committee, or its delegate, using a pricing service and/or policies approved by the Board. Each business day, the Funds use a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and OTC options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of business on the NYSE, which follows the close of the local markets.

Foreign Currency: Each Fund’s books and records are maintained in U.S. dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the Fund’s investments denominated in that currency will lose value because that currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency 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 federal income tax purposes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g. swaps), that would be “senior securities” for 1940 Act purposes, the Fund may segregate or designate on their books and record cash or liquid securities having a market value at least equal to the amount of the Fund’s future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Distributions: Distributions paid by the Fund is recorded on the ex-dividend date. The character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Other operating expenses shared by several funds are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on its relative net assets or other appropriate methods.

The Funds have an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

BLACKROCK FUNDS JANUARY 31, 2015 55

Notes to Financial Statements (continued)

3. 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 economically hedge their exposure to certain risks such as equity risk. These contracts may be transacted on an exchange or OTC.

Financial Futures Contracts: The Funds invest in long and/or short positions in financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in the value of equity securities (equity risk). Financial futures contracts are agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date.

Upon entering into a financial 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. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited, if any, is recorded on the Statements of Assets and Liabilities as cash pledged for financial futures contracts. 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 value of the contract. Such receipts or payments are known as variation margin. Variation margin is recorded by the Funds as unrealized appreciation or depreciation and, if applicable, as a receivable or payable for variation margin in the Statements of Assets and Liabilities.

When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest or foreign currency exchange rates and the underlying assets.

Forward Foreign Currency Exchange Contracts: The Funds enter into forward foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from, foreign currencies (foreign currency exchange rate risk). A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a future date. Forward foreign currency exchange contracts, when used by the Funds, help to manage the overall exposure to the currencies in which some of the investments held by the Funds are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Funds as an unrealized gain or loss. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. 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.

Swaps: The Funds enter into swap agreements, in which the Funds and a counterparty agree either 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”). Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation).

For OTC swaps, any upfront premiums paid are recorded as assets and any upfront fees received are recorded as liabilities and 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 OTC swap. Payments received or made by the Funds for OTC swaps are recorded in the Statements of Operations as realized gains or losses, respectively. When an OTC swap is terminated, the Funds will record a realized gain or loss 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 agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Funds’ counterparty on the swap agreement becomes the CCP. The Funds are required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, 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 the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited is recorded on the Statements of Assets and Liabilities as cash pledged for centrally cleared swaps. The daily change in valuation of centrally cleared swaps is recorded as a receivable or payable for variation margin in the Statements of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gain (loss) in the Statements of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk 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.

56 BLACKROCK FUNDS JANUARY 31, 2015

Notes to Financial Statements (continued)

•   Total return swaps — The Funds enter into total return swaps to obtain exposure to securities (both long and short) or markets without owning such securities or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity 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 (dividends or interest plus capital gains/losses) of an underlying instrument in exchange for fixed or floating rate interest payments.

The Funds will pay an amount equal to any depreciation on a long position and appreciation on a short position including dividend income from such positions. Conversely, the Funds will receive any appreciation on a long position and any depreciation on a short position including dividend income from such positions. In addition, the Funds will also pay or receive a variable rate of interest based on the underlying benchmark rate plus or minus a spread (“financing fees”). The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying basket of equity securities and financing fees. The agreement allows the Manager to change the composition of the basket of securities by trading in and out of the underlying equity positions at its discretion. The resulting gains or losses are recorded in the Statements of Operations. Certain swaps have no stated expiration and can be terminated by either party at any time.

The following is a summary of the Funds’ derivative financial instruments categorized by risk exposure:

Fair Values of Derivative Financial Instruments as of January 31, 2015
		��	Value
			Emerging Markets Long/Short Equity		Global Long/Short Equity
	Statements of Assets and Liabilities Location		Derivative Assets	Derivative Liabilities	Derivative Assets	Derivative Liabilities
Equity contracts	Net Unrealized appreciation/depreciation on OTC swaps		$10,913,772	—	$40,774,757	$(1,626,010)

¹ Includes cumulative appreciation/depreciation on financial futures contracts and centrally cleared swaps, if any, as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Statements of Operations For the six months ended January 31, 2015
	Net Realized Gain (Loss) From				Net Change in Unrealized Appreciation/(Depreciation) on
	Emerging Markets Long/Short Equity		Global Long/Short Equity		Emerging Markets Long/Short Equity			Global Long/Short Equity
Equity contracts:
Financial futures contracts		—	$	1,666,868		—		$	325,958
Swaps	$	28,815,594		32,708,450	$	(24,283,961	)		9,241,655
Total	$	28,815,594	$	34,375,318	$	(24,283,961	)	$	9,567,613

For the six months ended January 31, 2015, the average quarterly balances of outstanding derivative financial instruments were as follows:

	Emerging Markets Long/Short Equity		Global Long/Short Equity
Financial futures contracts:
Average notional value of contracts purchased		—	$	120,054,797	1
Total return swaps:
Average notional amount	$	88,902,427	$	(45,735,775	)

¹ Average amounts for the period are shown due to limited outstanding derivative financial instruments as of each quarter.

Counterparty Credit Risk: 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.

The Funds’ risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by such Fund.

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) of the clearing broker or clearinghouse. 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

BLACKROCK FUNDS JANUARY 31, 2015 57

Notes to Financial Statements (continued)

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.

In order to better define its contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their counterparties. An ISDA Master Agreement is a bilateral agreement between each 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, each 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. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to terminate derivative contracts prior to maturity in the event the Funds’ net assets decline by a stated percentage or the Funds fail to meet the terms of their respective ISDA Master Agreements. The result would cause the Funds to accelerate payment of any net liability owed to the counterparty.

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 Funds 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 on 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 party has to exceed a minimum transfer amount threshold (typically either $250,000 or $500,000) 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 Funds and counterparties are not permitted to sell, re-pledge or use the collateral they receive. To the extent amounts due to the Funds from their counterparties are not fully collateralized, the Funds bear 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, the Funds bear 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.

As of January 31, 2015, the Funds’ derivative assets and liabilities (by type) are as follows:

	Emerging Markets Long/Short Equity				Global Long/Short Equity
	Assets		Liabilities		Assets		Liabilities
Derivative Financial Instruments:
Swaps — OTC1	$	10,913,772		—	$	40,774,757	$	1,626,010
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		—		—		—		—
Total of derivative assets and liabilities subject to an MNA	$	10,913,772		—	$	40,774,757	$	1,626,010

¹ Includes unrealized appreciation/depreciation on OTC swaps in the Statements of Assets and Liabilities and reported in the Schedules of Investments.

As of January 31, 2015, the following table presents the Funds’ 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 Funds:

Emerging Markets Long/Short Equity
Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset		Non-cash Collateral Received		Cash Collateral Received2			Net Amount of Derivative Assets3
Goldman Sachs & Co.	$	6,259,909		—		—	$	(4,800,000	)	$	1,459,909
Morgan Stanley & Co, LLC		622,891		—		—		(580,000	)		42,891
UBS AG		4,030,972		—		—		(4,030,972	)		—
Total	$	10,913,772		—		—	$	(9,410,972	)	$	1,502,800

² Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

³ Net amount represents the net amount receivable from the counterparty in the event of default.

58 BLACKROCK FUNDS JANUARY 31, 2015

Notes to Financial Statements (continued)

Global Long/Short Equity
Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset		Non-cash Collateral Received		Cash Collateral Received1			Net Amount of Derivative Assets2
Deutsche Bank AG	$	615,096		—		—	$	(615,096	)		—
Goldman Sachs & Co.		34,847,188		—		—		(22,700,000	)	$	12,147,188
UBS AG		5,312,473		—		—		(3,227,615	)		2,084,858
Total	$	40,774,757		—		—	$	(26,542,711	)	$	14,232,046

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset		Non-cash Collateral Pledged		Cash Collateral Pledged3			Net Amount of Derivative Liabilities4
Bank of America NA	$	1,626,010		—		—	$	(1,626,010	)		—

¹ Excess of collateral received from the individual counterparty is not shown for financial reporting purposes.

² Net amount represents the net amount receivable from the counterparty in the event of default.

³ Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

⁴ Net amount represents the net amount payable due to the counterparty in the event of default.

4. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).

The Trust, on behalf of the Funds, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee based on a percentage of each Fund’s average daily net assets at the following annual rates:

Average Daily Net Assets	Investment Advisory Fee
First $1 Billion	1.50%
$1 Billion — $3 Billion	1.41%
$3 Billion — $5 Billion	1.35%
$5 Billion — $10 Billion	1.31%
Greater than $10 Billion	1.28%

The Manager voluntarily 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. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Fund’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by Manager in the Statements of Operations. For the six months ended January 31, 2015, the amounts waived were as follows:

Emerging Markets Long/Short Equity	$	192,423
Global Long/Short Equity	$	541,873

The Trust, on behalf of the 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, the Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:

	Service Fee			Distribution Fee
Investor A		0.25	%		—
Investor C		0.25	%		0.75	%

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

BLACKROCK FUNDS JANUARY 31, 2015 59

Notes to Financial Statements (continued)

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 sub-accounts they service. 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 January 31, 2015, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent in the Statements of Operations:

Emerging Markets Long/Short Equity	Global Long/Short Equity
$324	$2,906

The Manager maintains a call center, which is responsible for providing certain shareholder services to the Funds, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the six months ended January 31, 2015, the Funds 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:

	Emerging Markets Long/Short Equity		Global Long/Short Equity
Institutional	$	909	$	1,659
Investor A	$	746	$	513
Investor C	$	180	$	892

Effective January 1, 2015, The Trust, on behalf of the Funds, entered into an Administration Agreement with the Manager 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 the Funds. The administration fee, which is shown as administration in the Statements of Operations, is paid at the annual rates below. In addition, each of the share classes is charged 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.

Average Daily Net Assets	Administration Fee
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%

Prior to January 1, 2015, State Street Bank and Trust Company and the Manager acted as co-administrators for the Funds. For these services, the co-administrators received an administration fee computed daily and payable monthly to each administrator pursuant to separate fee arrangements, based on a percentage of the average daily net assets of each Fund. The combined administration fee, which is shown as administration in the Statements of Operations, was paid at the annual rates below. In addition, each of the share classes was charged an administration fee, which is shown as administration — class specific in the Statements of Operations, based on the following percentages of average daily net assets of each respective class:

Average Daily Net Assets	Administration Fee	Administration Fee — Class Specific
First $500 Million	0.075%	0.025%
500 Million — $1 Billion	0.065%	0.015%
Greater than $1 Billion	0.055%	0.005%

For the six months ended January 31, 2015, the Funds paid the following to the Manager in return for these services, which are included in administration and administration — class specific in the Statements of Operations:

	Administration Fees
Emerging Markets Long/Short Equity	$	195,650
Global Long/Short Equity	$	481,339

The Administrators may have, at their discretion, voluntarily waived all or any portion of their administration fees for a Fund or a share class, which are included in administration fees waived and administration fees waived — class specific in the Statements of Operations.

60 BLACKROCK FUNDS JANUARY 31, 2015

Notes to Financial Statements (continued)

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 the Funds’ business. The current expense limitations as a percentage of average daily net assets are as follows: 1.75% for Institutional; 2.00% for Investor A, and 2.75% for Investor C. The Manager has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to December 1, 2015 unless approved by the Board, including a majority of the Independent Trustees.

These amounts are included in fees waived by Manager, fees reimbursed by Manager, administration fees waived — class specific and transfer agent fees waived and/or reimbursed respectively, in the Statements of Operations.

If during the Funds’ fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver or reimbursement from the Manager, are less than the expense limit 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 or expenses reimbursed during those prior two fiscal years under the agreement and (b) the amount by which the expense limit for that share class exceeds the operating expenses of the share class for the current fiscal year, provided that: (1) the 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 the Fund’s investment advisor or administrator. In the event the expense limit for a share class is changed subsequent to a fiscal year in which the Manager becomes entitled to reimbursement for fees waived or reimbursed, the amount available to reimburse the Manager shall be calculated by reference to the expense limit for that share class in effect at the time the Manager became entitled to receive such reimbursement, rather than the subsequently changed expense limit for that share class.

For the six months ended January 31, 2015, the Manager recouped the following Fund level and class specific waivers and/or reimbursements previously recorded by the Funds:

	Emerging Markets Long/Short Equity		Global Long/ Short Equity
Fund		—	$	5,855
Institutional		—	$	2,791
Investor A	$	908	$	30,535
Investor C	$	1,184	$	5,983

On January 31, 2015, the Fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Emerging Markets Long/Short Equity				Global Long/Short Equity
Expiring January 31,	2015		2016		2015	2016
Fund		—		—	—		—
Institutional	$	116,535	$	93,686	—		—
Investor A		—	$	3,940	—	$	4,437
Investor C		—	$	74	—	$	382

For the six months ended January 31, 2015, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Funds’ Investor A Shares as follows:

	Investor A
Emerging Markets Long/Short Equity	$	802
Global Long/Short Equity	$	12,369

For the six months ended January 31, 2015, affiliates received CDSCs as follows:

	Investor A		Investor C
Emerging Markets Long/Short Equity	$	7,157	$	967
Global Long/Short Equity	$	25,451	$	23,047

Certain officers and/or trustees of the Trust are officers and/or directors 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 officer and trustees in the Statements of Operations.

5. Purchases and Sales

For the six months ended January 31, 2015, purchases of investments, excluding short-term securities were $1,499,957 for Global Long/Short Equity.

BLACKROCK FUNDS JANUARY 31, 2015 61

Notes to Financial Statements (continued)

6. 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 their taxable income to their shareholders. Therefore, no 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 Emerging Markets Long/Short Equity’s U.S. federal tax returns remains open for the two years ended July 31, 2014 and the period ended July 31, 2012. The statute of limitations on Global Long/Short Equity’s U.S. federal tax returns remains open for the year ended July 31, 2014 and the period ended July 31, 2013. 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’ facts and circumstances and does not believe that there are any uncertain tax positions that require recognition of a tax liability.

As of January 31, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

	Global Long/Short Equity
Tax cost	$	1,690,056,717
Gross unrealized appreciation	$	1,257,035
Gross unrealized depreciation		(17,794	)
Net unrealized appreciation	$	1,239,241

7. Bank Borrowings:

The Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), were parties to a 364-day, $1.1 billion credit agreement with a group of lenders, under which the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for a certain fund, the Participating Funds, including the Funds, could borrow up to an aggregate commitment amount of $650 million, subject to asset coverage and other limitations as specified in the agreement. Effective November 25, 2014, the credit agreement was amended to an aggregate commitment amount of $2.1 billion, of which the Participating Funds, including the Funds, can borrow up to $1.6 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The agreement terminates on April 23, 2015, unless otherwise extended to November 24, 2015 or renewed for a period of 364 days from April 23, 2015. The credit agreement has the following terms: a fee of 0.06% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) the one-month LIBOR (but in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations, and along with commitment 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 January 31, 2015, the Funds did not borrow under the credit agreement.

8. Principal Risk:

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty credit risk by entering into transactions only with counterparties that they believe 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 generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

The Funds invest a substantial amount of their assets in issuers located in a single country or a limited number of countries. When the Funds concentrate their investments in this manner, they assume the risk that economic, political and social conditions in those countries may have a significant impact on their investment performance. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be less liquid, more volatile, and less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedules of Investments.

62 BLACKROCK FUNDS JANUARY 31, 2015

Notes to Financial Statements (continued)

Global Long/Short Equity invests a significant portion of its assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Fund’s investments.

As of January 31, 2015, the Funds had the following industry classifications:

Emerging Markets Long/Short Equity	Percent of Total Investments
Industry	Long			Short			Total
Electronic Equipment, Instruments & Components		2	%		3	%		5	%
Machinery		1			3			4
Oil, Gas & Consumable Fuels		4			—			4
Wireless Telecommunication Services		3			1			4
Semiconductors & Semiconductor Equipment		3			1			4
Metals & Mining		3			1			4
Real Estate Management & Development		2			2			4
Multi-Utilities		—			3			3
Transportation Infrastructure		3			—			3
Industrial Conglomerates		3			—			3
Food Products		1			2			3
Food & Staples Retailing		1			2			3
Diversified Financial Services		1			2			3
Technology Hardware, Storage & Peripherals		1			2			3
Marine		1			2			3
Software		1			2			3
Health Care Providers & Services		2			—			2
Independent Power and Renewable Electricity Producers		2			—			2
Pharmaceuticals		1			1			2
Electric Utilities		1			1			2
Insurance		1			1			2
Media		1			1			2
Banks		1			1			2
Diversified Telecommunication Services		1			1			2
Construction Materials		1			1			2
Chemicals		1			1			2
Auto Components		1			1			2
Electrical Equipment		—			1			1
Specialty Retail		1			—			1
Capital Markets		1			—			1
Other1		10			9			19
Total		55	%		45	%		100	%

¹ All other industries held were each less than 1% of long-term investments.

BLACKROCK FUNDS JANUARY 31, 2015 63

Notes to Financial Statements (continued)

Global Long/Short Equity	Percent of Total Investments
Industry	Long			Short			Total
Metals & Mining		5	%		—			5	%
Hotels, Restaurants & Leisure		1			3			4
Chemicals		2			2			4
Semiconductors & Semiconductor Equipment		3			1			4
Specialty Retail		1			3			4
Food Product		1			3			4
Software		1			2			3
Oil, Gas & Consumable Fuels		2			1			3
Real Estate Investment Trusts (REITs)		2			1			3
Beverages		1			2			3
Food & Staples Retailing		—			3			3
Media		3			—			3
Textiles, Apparel & Luxury Goods		—			3			3
Banks		2			1			3
Electric Utilities		2			1			3
Pharmaceuticals		1			2			3
Electronic Equipment, Instruments & Components		2			1			3
Machinery		1			1			2
IT Services		1			1			2
Health Care Providers & Services		1			1			2
Professional Services		1			1			2
Diversified Telecommunication Services		2			—			2
Independent Power and Renewable Electricity Producers		1			—			1
Internet & Catalog Retail		—			1			1
Internet Software & Services		—			1			1
Trading Companies & Distributors		1			—			1
Containers & Packaging		1			—			1
Real Estate Management & Development		1			—			1
Other1		10			16			26
Total		49	%		51	%		100	%

¹ All other industries held were each less than 1% of long-term investments.

9. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Six Months Ended January 31, 2015						Year Ended July 31, 2014
Emerging Markets Long/Short Equity	Shares			Amount			Shares			Amount
Institutional
Shares sold		10,904,713		$	113,157,732			47,440,774		$	489,242,017
Shares issued in reinvestment of distributions		—			—			207,731			2,177,025
Shares redeemed		(15,496,748	)		(160,855,057	)		(38,792,599	)		(398,103,561	)
Net increase (decrease)		(4,592,035	)	$	(47,697,325	)		8,855,906		$	93,315,481
Investor A
Shares sold		252,633		$	2,612,053			8,527,033		$	88,740,800
Shares issued in reinvestment of distributions		—			—			78,499			819,531
Shares redeemed		(3,593,828	)		(37,138,268	)		(17,942,596	)		(183,792,179	)
Net decrease		(3,341,195	)	$	(34,526,215	)		(9,337,064	)	$	(94,231,848	)
Investor C
Shares sold		40,193		$	406,754			437,110		$	4,509,364
Shares issued in reinvestment of distributions		—			—			5,448			56,167
Shares redeemed		(388,931	)		(3,938,324	)		(800,674	)		(8,088,972	)
Net decrease		(348,738	)	$	(3,531,570	)		(358,116	)	$	(3,523,441	)
Total Net Decrease		(8,281,968	)	$	(85,755,110	)		(839,274	)	$	(4,439,808	)

64 BLACKROCK FUNDS JANUARY 31, 2015

Notes to Financial Statements (concluded)

	Six Months Ended January 31, 2015						Year Ended July 31, 2014
Global Long/Short Equity Fund	Shares			Amount			Shares			Amount
Institutional
Shares sold		53,955,122		$	638,634,627			5,825,713		$	62,297,256
Shares issued in reinvestment of distributions		93,936			1,125,345			—			—
Shares redeemed		(26,391,077	)		(312,654,695	)		(13,898	)		(155,749	)
Net increase		27,657,980		$	327,105,277			5,811,815		$	62,141,507
Investor A
Shares sold		5,677,799		$	66,890,570			1,344,012		$	14,968,320
Shares issued in reinvestment of distributions		21,895			260,983			—			—
Shares redeemed		(10,463,159	)		(122,135,815	)		(7,137	)		(79,937	)
Net increase (decrease)		(4,763,465	)	$	(54,984,262	)		1,336,875		$	14,888,383
Investor C
Shares sold		1,840,377		$	21,500,577			230,886		$	2,577,446
Shares issued in reinvestment of distributions		9,958			117,105			—			—
Shares redeemed		(1,519,285	)		(17,721,065	)		(7	)		(75	)
Net increase		331,050		$	3,896,617			230,879		$	2,577,371
Total Net Increase		23,225,565		$	276,017,632			7,379,569		$	79,607,261

10. Subsequent Events:

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

BLACKROCK FUNDS JANUARY 31, 2015 65

Officers and Trustees

Rodney D. Johnson, Chairman of the Board and Trustee

David O. Beim, Trustee

Collette Chilton, Trustee

Frank J. Fabozzi, Trustee

Dr. Matina S. Horner, Trustee

Herbert I. London, Trustee

Ian A. MacKinnon, Trustee

Cynthia A. Montgomery, Trustee

Barbara G. Novick, Trustee

Joseph P. Platt, Trustee

Robert C. Robb, Jr., Trustee

Toby Rosenblatt, Trustee

Mark Stalnecker, Trustee

Kenneth L. Urish, Trustee

Frederick W. Winter, Trustee

John M. Perlowski, President and Chief Executive Officer

Richard Hoerner, CFA, Vice President

Jennifer McGovern, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Charles Park, Chief Compliance Officer and Anti-Money Laundering Compliance Officer

Benjamin Archibald, Secretary

Effective September 19, 2014, Brendan Kyne resigned as a Vice President of the Trust and Jennifer McGovern became a Vice President of the Trust.

Effective December 31, 2014, Paul L. Audet and Henry Gabbay resigned as Trustees of the Trust and Ronald W. Forbes resigned as a Trustee of the Trust and Co-Chair of the Board. Effective January 1, 2015, Collette Chilton, Barbara G. Novick and Mark Stalnecker were appointed to serve as Trustees of the Trust.

Effective March 1, 2015, Charles Park resigned as Anti-Money Laundering Compliance Officer of the Trust and Fernanda Piedra became Anti-Money Laundering Compliance Officer of the Trust.

 

Investment Advisor and
Co-Administrator
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisor
BlackRock Fund Advisors
San Francisco, CA 94105
Custodian, Accounting Agent and
Co-Administrator
State Street Bank and Trust Company
Boston, MA 02110

Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Wilmington, DE 19809
Independent Registered Public
Accounting Firm
PricewaterhouseCoopers LLP
Philadelphia, PA 19103

Distributor
BlackRock Investments, LLC
New York, NY 10022
Legal Counsel
Sidley Austin LLP
New York, NY 10019

Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809

66 BLACKROCK FUNDS JANUARY 31, 2015

Additional Information

General Information

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports 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 schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge, (1) by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in each Fund’s portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.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 online at http://www.blackrock.com for more information.

BLACKROCK FUNDS JANUARY 31, 2015 67

Additional Information (continued)

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

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.

68 BLACKROCK FUNDS JANUARY 31, 2015

Additional Information (concluded)

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.

BLACKROCK FUNDS JANUARY 31, 2015 69

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[THIS PAGE INTENTIONALLY LEFT BLANK]

The report is transmitted to shareholders only. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless accompanied or preceded by that Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change. Please see each Fund’s prospectus for a description of risks associated with global investments.

 

EMLSGLS-1/15-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 Registrants – 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 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 second fiscal quarter of 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 – Exhibits attached hereto

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(b) – Certifications – Attached hereto

2

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 Funds

By: /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Funds

Date: April 2, 2015

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 Funds

Date: April 2, 2015

By: /s/ Neal J. Andrews

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Funds

Date: April 2, 2015

3