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 Market Allocation Portfolio

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: 10/31/2015

Date of reporting period: 04/30/2015

Item 1 – Report to Stockholders

APRIL 30, 2015

SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Emerging Market Allocation Portfolio   |   of BlackRock Funds^SM

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

Page 

The Markets in Review	3
Semi-Annual Report:
Fund Summary	4
Derivative Financial Instruments	6
About Fund Performance	7
Disclosure of Expenses	7
Financial Statements:
Consolidated Schedule of Investments	8
Consolidated Statement of Assets and Liabilities	25
Consolidated Statement of Operations	26
Consolidated Statement of Changes in Net Assets	27
Consolidated Financial Highlights	28
Notes to Consolidated Financial Statements	31
Officers and Trustees	42
Additional Information	43

2 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

The Markets in Review

Dear Shareholder,

Financial market performance was generally positive for the 6- and 12-month periods ended April 30, 2015, although volatility increased from the remarkably low levels seen in recent years. In 2014, as the U.S. Federal Reserve (the “Fed”) gradually reduced its bond buying program (which ultimately ended in October), U.S. interest rates surprisingly trended lower and stock prices forged ahead despite high valuations on the back of a multi-year bull market.

Around mid-year, however, geopolitical tensions intensified in Ukraine and the Middle East and oil prices became highly volatile, stoking worries about economic growth outside the United States. As the U.S. economy continued to post stronger data, investors grew concerned that the Fed would raise short-term rates sooner than previously anticipated. The U.S. dollar appreciated and global credit markets tightened, ultimately putting a strain on investor flows, and financial markets broadly weakened in the third quarter.

U.S. economic growth picked up considerably in the fourth quarter while the broader global economy showed signs of slowing. U.S. markets significantly outperformed international markets during this period even as the European Central Bank (“ECB”) and the Bank of Japan eased monetary policy, which drove further strengthening in the U.S. dollar. Oil prices plummeted due to a global supply-and-demand imbalance, sparking a selloff in energy-related assets and stress in emerging markets. Fixed income investors piled into U.S. Treasuries as their persistently low yields became attractive as compared to international sovereign debt.

Equity markets reversed in 2015, with U.S. stocks underperforming international markets. Investors had held high expectations for the U.S. economy, but after a harsh winter, first-quarter data disappointed and high valuations took their toll on U.S. stocks. The continued appreciation of the dollar was an additional headwind for exporters. Although U.S. economic momentum had broadly weakened, the labor market — a key determinant for the Fed’s decision on the future of interest rate policy — showed improvement, keeping investors on edge about when to expect the first rate hike.

In contrast, economic reports in Europe and Asia easily beat investors’ very low expectations, and accommodative policies from central banks in those regions helped international equities rebound. The ECB’s asset purchase program was the largest in scale and effect on the markets. Global sentiment improved with a ceasefire in Ukraine and an improving outlook for Greece’s continued membership in the eurozone. Emerging market stocks rebounded in April as oil prices appeared to stabilize.

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 April 30, 2015

	6-month			12-month
U.S. large cap equities (S&P 500® Index)		4.40	%		12.98	%
U.S. small cap equities (Russell 2000® Index)		4.65			9.71
International equities (MSCI Europe, Australasia, Far East Index)		6.81			1.66
Emerging market equities (MSCI Emerging Markets Index)		3.92			7.80
3-month Treasury bill (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)		0.01			0.02
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)		3.59			8.03
U.S. investment grade bonds (Barclays U.S. Aggregate Bond Index)		2.06			4.46
Tax-exempt municipal bonds (S&P Municipal Bond Index)		1.27			4.86
U.S. high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		1.52			2.59

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 April 30, 2015

Investment Objective

BlackRock Emerging Market Allocation Portfolio’s (the “Fund”) investment objective is to seek total return.

Portfolio Management Commentary

How did the Fund perform?

•  For the six-month period ended April 30, 2015, the Fund outperformed its custom blended benchmark (60% MSCI Emerging Markets Index (“MSCI EM” or the “equity benchmark”)/40% JPMorgan Emerging Markets Bond Index Plus (“EMBI+” or the “fixed income benchmark”).

What factors influenced performance?

•  As part of its investment strategy, the Fund uses derivatives, including total return swaps, to achieve exposure to specific markets or to manage market and/or equity risks. Through the use of total return swaps, the Fund seeks to manage more effectively its desired exposures to fixed income and equity markets.

•  Within equities, stock selection and thematic investment ideas were the largest contributors to performance relative to the benchmark. Overweights in Chinese transportation and telecommunication stocks, which were based on analyst sentiment and the investment advisor’s thematic views, were among the most important contributors. An underweight position in oil & gas producers also contributed to outperformance, as energy stocks lagged due to the decline in oil prices.

•  Within fixed income, the Fund’s underweights in Venezuela and Ukraine made important contributions to performance given that both markets underperformed during that period.

•  The largest detractors from performance within equities were the Fund’s underweight positions in Mexican telecommunications and media stocks, as well as its short position in computer producers, mainly in China and South Korea. On the fixed income side, the most important detractors from performance were slight underweight positions in the sovereign bonds of Turkey, Hungary and Mexico.

Describe recent portfolio activity.

•  At period end, the Fund was slightly overweight in both fixed income and equities, given the use of a small amount of leverage to compensate for the lower risk profile of the Fund versus the custom blended benchmark. Within fixed income, the Fund remained strategically biased toward high quality issuers and significantly underweight in the lowest rated benchmark constituents.

•  As oil prices declined during late 2014, the Fund increased its short position in oil producing countries such as Russia and Mexico, while overweighting those countries that stood to gain the greatest benefit from lower oil prices, such as India. The positions were gradually scaled back to neutral as oil prices started to stabilize at the beginning of 2015.

•  The Fund’s cash exposure resulted from maintaining long and short positions via the use of derivatives. The Fund was fully invested throughout the period, and the cash exposure did not have a material impact on performance.

Describe portfolio positioning at period end.

•  At the end of the period, the Fund’s largest equity overweights were in Indonesia, Philippines and Turkey, while its largest equity underweights were in Thailand, South Korea and China. Within fixed income, the Fund’s largest out-of-benchmark allocations were to the bonds of developed market companies that conduct a significant amount of business in the emerging markets. Within the emerging markets, the Fund was overweight in investment grade Asian countries, as well as in Peru, Uruguay and Chile.

4 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

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 circumstances, the Fund seeks to invest at least 80% of its net assets plus any borrowings for investment purposes in equity and debt instruments and related derivative instruments issued by, or tied economically to, companies or other issuers located in emerging markets.

³ A customized weighted index comprised of the returns of the (60%) MSCI Emerging Markets Index and (40%) JPMorgan Emerging Markets Bond Index Plus. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets and consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. JPMorgan Emerging Markets Bond Index Plus is a market capitalization-weighted index that tracks returns for actively traded external debt instruments in emerging markets.

⁴ Commencement of operations.

Performance Summary for the Period Ended April 30, 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		3.57	%		10.29	%		N/A			1.43	%		N/A
Investor A		3.41			10.03			4.25	%		1.16			(1.59	)%
Investor C		3.08			9.26			8.26			0.46			0.46
60% MSCI Emerging Markets Index/40% JPMorgan Emerging Markets Bond Index Plus		2.54			6.45			N/A			1.90			N/A
MSCI Emerging Markets Index		3.92			7.80			N/A			2.47			N/A
JPMorgan Emerging Markets Bond Index Plus		0.36			4.18			N/A			0.83			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 7 for a detailed description of share classes, including any related sales charges and fees.

⁶ The Fund commenced operations on May 16, 2013.

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 November 1, 2014	Ending Account Value April 30, 2015	Expenses Paid During the Period7	Beginning Account Value November 1, 2014	Ending Account Value April 30, 2015	Expenses Paid During the Period7	Annualized Expense Ratio
Institutional	$1,000.00	$1,035.70	$  7.07	$1,000.00	$1,017.85	$  7.00	1.40%
Investor A	$1,000.00	$1,034.10	$  8.32	$1,000.00	$1,016.61	$  8.25	1.65%
Investor C	$1,000.00	$1,030.80	$12.08	$1,000.00	$1,102.89	$11.98	2.40%

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 181/365 (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 7 for further information on how expenses were calculated.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 5

Fund Summary (concluded)

Portfolio Information as of April 30, 2015

Portfolio Composition	Percent of Long-Term Investments
Foreign Government Obligations		67	%
Corporate Bonds		15
Foreign Agency Obligations		9
Investment Companies		9

	Percent of Total investments1
Geographic Allocation	Long			Short			Total
China		10	%		6	%		16	%
Taiwan		8			3			11
South Korea		6			4			10
Brazil		7			2			9
Hong Kong		5			2			7
United States		7			—			7
Mexico		4			2			6
South Africa		4			1			5
Turkey		4			1			5
Russia		3			—			3
Poland		3			—			3
Philippines		2			—			2
Malaysia		2			—			2
Indonesia		2			—			2
Thailand		1			1			2
Colombia		1			1			2
Other2		6			2			8
Total		75	%		25	%		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 Other includes a 1% or less investment in each of the following countries: Argentina, Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hungary, India, Ireland, Israel, Italy, Japan, Kazakhstan, Lithuania, Malta, Netherlands, Norway, Panama, Peru, Romania, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Ukraine, United Arab Emirates, United Kingdom, Uruguay and Venezuela.

Derivative Financial Instruments

The Fund 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 Fund’s 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 the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments are discussed in detail in the Notes to Consolidated Financial Statements.

6 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

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 the 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 the performance tables on the previous page assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date. 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 Fund’s investment advisor, waived and/or reimbursed a portion of the Fund’s expenses. Without such waiver and/or reimbursement, the Fund’s performance would have been lower. The Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waiver may be reduced or discontinued at any time. See Note 4 of the Notes to Consolidated Financial Statements for additional information on waivers and reimbursements.

Disclosure of Expenses

Shareholders of the 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 example on the previous page (which is based on a hypothetical investment of $1,000 invested on November 1, 2014 and held through April 30, 2015) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides 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 share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the 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 the Fund and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example 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.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 7

Consolidated Schedule of Investments April 30, 2015 (Unaudited) 
(Percentages shown are based on Net Assets)

Corporate Bonds	Par (000)		Value
United States — 8.6%
3M Co., 3.88%, 6/15/44	$	100	$	103,269
Amazon.com, Inc.:
4.80%, 12/05/34		100		106,183
4.95%, 12/05/44		75		79,674
American Express Co., 4.05%, 12/03/42		75		72,331
Apple, Inc.:
3.85%, 5/04/43		150		144,986
3.45%, 2/09/45		175		156,490
Bristol-Myers Squibb Co., 4.50%, 3/01/44		100		110,397
Eli Lilly & Co.:
5.55%, 3/15/37		75		92,135
3.70%, 3/01/45		100		96,648
General Electric Co.:
4.13%, 10/09/42		125		129,694
4.50%, 3/11/44		100		109,767
The Goldman Sachs Group, Inc.:
6.13%, 2/15/33		200		249,576
4.80%, 7/08/44		150		159,441
Intel Corp.:
4.80%, 10/01/41		75		81,497
4.25%, 12/15/42		100		100,961
International Business Machines Corp.:
5.60%, 11/30/39		75		90,334
4.00%, 6/20/42		75		72,338
Merck & Co., Inc.:
6.50%, 12/01/33		100		134,595
3.70%, 2/10/45		150		144,977
Microsoft Corp.:
3.50%, 2/12/35		75		71,480
5.30%, 2/08/41		175		209,434
3.75%, 2/12/45		200		189,478
Morgan Stanley:
6.38%, 7/24/42		75		96,927
4.30%, 1/27/45		225		221,250
Oracle Corp.:
4.30%, 7/08/34		225		233,789
5.38%, 7/15/40		200		234,898
PepsiCo, Inc.:
4.00%, 3/05/42		100		101,974
4.25%, 10/22/44		100		104,780
Pfizer, Inc.:
7.20%, 3/15/39		100		142,793
4.40%, 5/15/44		125		131,862
The Procter & Gamble Co., 5.55%, 3/05/37		150		193,807
Wal-Mart Stores, Inc.:
5.25%, 9/01/35		250		302,958
6.50%, 8/15/37		200		273,777
5.63%, 4/01/40		75		93,956
5.63%, 4/15/41		200		251,763
4.30%, 4/22/44		200		215,453
				5,305,672
Total Corporate Bonds — 8.6%				5,305,672

Foreign Agency Obligations	Par (000)		Value
Chile — 0.7%
Corp. Nacional del Cobre de Chile:
4.50%, 8/13/23	$	200	$	215,502
4.25%, 7/17/42		200		189,464
				404,966
China — 0.3%
State Grid Overseas Investment 2013, Ltd., 3.13%, 5/22/23		200		200,899
Hong Kong — 0.5%
Sinochem Overseas Capital Co., Ltd., 4.50%, 11/12/20		100		107,724
Sinopec Group Overseas Development 2012, Ltd., 3.90%, 5/17/22		200		208,166
				315,890
Kazakhstan — 0.2%
KazMunayGas National Co. JSC, 9.13%, 7/02/18		100		113,050
Malaysia — 1.0%
Petroliam Nasional BHD, 7.63%, 10/15/26		200		275,052
Petronas Capital, Ltd., 5.25%, 8/12/19		300		335,100
				610,152
Mexico — 0.3%
Petroleos Mexicanos:
5.50%, 1/21/21		100		109,750
6.50%, 6/02/41		50		55,187
				164,937
Netherlands — 0.3%
Kazakhstan Temir Zholy Finance BV, 6.38%, 10/06/20		200		211,240
Philippines — 0.3%
Power Sector Assets & Liabilities Management Corp., 7.39%, 12/02/24		150		202,125
South Africa — 0.3%
Eskom Holdings SOC, Ltd., 5.75%, 1/26/21		200		199,200
United Kingdom — 1.3%
HSBC Holdings PLC:
6.50%, 9/15/37		225		282,813
6.10%, 1/14/42		225		292,310
Sinopec Group Overseas Development 2013, Ltd., 4.38%, 10/17/23		200		214,950
				790,073
Total Foreign Agency Obligations — 5.2%				3,212,532

Portfolio Abbreviations

ADR
ETF
GDR
INR
JSC American Depositary Receipts
Exchange-Traded Fund
Global Depositary Receipts
Indian Rupee
Joint Stock Company LIBOR
MSCI
REIT
THB
TWD London InterBank Offered Rate
Morgan Stanley Capital International
Real Estate Investment Trust
Thai Baht
Taiwan Dollar

See Notes to Consolidated Financial Statements.

8 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Schedule of Investments (continued)
(Percentages shown are based on Net Assets)

Foreign Government Obligations	Par (000)		Value
Argentine Republic Government International Bond:
8.75%, 6/02/17	$	25	$	24,375
8.28%, 12/31/33		189		191,270
2.50%, 12/31/38		165		95,288
Banco Nacional de Desenvolvimento Economico e Social, 5.50%, 7/12/20		100		105,625
Brazilian Government International Bond:
4.88%, 1/22/21		900		961,650
8.88%, 4/15/24		100		135,000
4.25%, 1/07/25		400		394,442
8.75%, 2/04/25		250		335,000
8.25%, 1/20/34		200		264,000
7.13%, 1/20/37		300		363,750
5.00%, 1/27/45		200		187,500
Chile Government International Bond, 2.25%, 10/30/22		250		249,375
Colombia Government International Bond:
4.38%, 7/12/21		800		848,800
4.00%, 2/26/24		200		205,500
8.13%, 5/21/24		150		198,937
7.38%, 9/18/37		100		133,250
6.13%, 1/18/41		250		292,500
5.63%, 2/26/44		200		220,500
Indonesia Government International Bond:
3.75%, 4/25/22		600		611,250
8.50%, 10/12/35		100		144,500
6.63%, 2/17/37		100		121,375
7.75%, 1/17/38		200		272,750
Lithuania Government International Bond:
5.13%, 9/14/17		200		217,400
7.38%, 2/11/20		500		607,000
6.13%, 3/09/21		700		827,750
6.63%, 2/01/22		200		246,452
Mexico Government International Bond:
5.63%, 1/15/17		200		214,700
5.95%, 3/19/19		150		171,225
5.13%, 1/15/20		200		224,000
3.63%, 3/15/22		400		413,000
4.00%, 10/02/23		400		420,400
8.30%, 8/15/31		200		306,000
6.75%, 9/27/34		100		132,500
6.05%, 1/11/40		150		181,688
4.75%, 3/08/44		330		338,827
5.55%, 1/21/45		250		285,625
5.75%, 10/12/49		276		293,940
Panama Government International Bond:
7.13%, 1/29/26		500		647,500
6.70%, 1/26/36		100		129,250
4.30%, 4/29/53		200		189,000
Peruvian Government International Bond:
7.13%, 3/30/19		200		237,000
8.75%, 11/21/33		100		157,750
6.55%, 3/14/37		430		569,212
5.63%, 11/18/50		150		180,375
Philippine Government International Bond:
8.38%, 6/17/19		150		188,437
4.00%, 1/15/21		300		329,250
5.50%, 3/30/26		400		491,000
9.50%, 2/02/30		100		167,875
7.75%, 1/14/31		100		149,500
6.38%, 10/23/34		400		559,000
5.00%, 1/13/37		400		488,000

Foreign Government Obligations	Par (000)		Value
Poland Government International Bond:
6.38%, 7/15/19	$	200	$	234,800
5.13%, 4/21/21		700		798,868
5.00%, 3/23/22		200		228,150
4.00%, 1/22/24		250		272,007
Romanian Government International Bond:
6.75%, 2/07/22		100		120,250
4.38%, 8/22/23		300		318,000
4.88%, 1/22/24		400		439,500
6.13%, 1/22/44		126		157,601
Russian Foreign Bond — Eurobond:
5.00%, 4/29/20		700		712,250
4.50%, 4/04/22		200		194,464
4.88%, 9/16/23		200		196,000
12.75%, 6/24/28		200		316,000
7.50%, 3/31/30		375		438,649
South Africa Government International Bond:
5.88%, 5/30/22		500		562,700
5.88%, 9/16/25		200		227,900
6.25%, 3/08/41		100		119,070
Turkey Government International Bond:
6.75%, 4/03/18		600		663,000
7.50%, 11/07/19		100		116,290
5.13%, 3/25/22		200		211,750
5.75%, 3/22/24		200		220,408
7.38%, 2/05/25		100		122,875
6.88%, 3/17/36		50		60,865
6.75%, 5/30/40		100		121,250
4.88%, 4/16/43		400		386,000
6.63%, 2/17/45		200		242,000
Ukraine Government International Bond:
6.75%, 11/14/17		100		46,500
7.95%, 2/23/21		200		91,532
Uruguay Government International Bond, 7.63%, 3/21/36		200		279,000
Venezuela Government International Bond:
7.75%, 10/13/19		250		115,625
12.75%, 8/23/22		250		136,875
8.25%, 10/13/24		235		102,813
11.75%, 10/21/26		250		126,875
9.25%, 9/15/27		185		90,650
11.95%, 8/05/31		300		151,500
7.00%, 3/31/38		150		61,125
Total Foreign Government Obligations — 39.5%				24,403,435
Investment Companies		Shares
United States — 5.3%
BlackRock Emerging Markets Flexible Dynamic Bond Portfolio (a)		316,117		2,841,892
iShares MSCI Frontier 100 ETF (a)		13,244		410,564
Total Investment Companies — 5.3%				3,252,456
Total Long-Term Investments (Cost — $36,067,587) — 58.6%				36,174,095

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 9

Consolidated Schedule of Investments (continued) 
(Percentages shown are based on Net Assets)

Short-Term Securities	Shares		Value
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.03% (a)(b)		30,478,690	$	30,478,690
Total Short-Term Securities (Cost — $30,478,690) — 49.3%				30,478,690
Total Investments (Cost — $66,546,277) — 107.9%				66,652,785
Liabilities in Excess of Other Assets — (7.9)%				(4,893,506	)
Net Assets — 100.0%			$	61,759,279

Notes to Consolidated Schedule of Investments

(a) During the six months ended April 30, 2015, investments in issuers considered to be affiliates 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 October 31, 2014		Shares Purchased			Shares Sold		Shares Held at April 30, 2015		Value at April 30, 2015		Income		Realized Gain
BlackRock Emerging Markets Flexible Dynamic Bond Portfolio		309,065		7,052			—		316,117	$	2,841,892	$	62,187		—
BlackRock Liquidity Funds, TempFund, Institutional Class		24,500,331		5,978,359	1		—		30,478,690	$	30,478,690	$	9,118		—
iShares MSCI Frontier 100 ETF		13,244		—			—		13,244	$	410,564	$	39,433		—

¹ Represents net shares purchased.

(b)	Represents the current yield as of report date.
•	As of April 30, 2015, financial futures contracts outstanding were as follows:

Contracts Long	Issue	Exchange	Expiration		Notional Value	Unrealized Depreciation
152	SGX S&P Nifty Index	Singapore Exchange Derivatives Clearing Limited	May  2015	$	2,509,976	$(44,035)

• As of April 30, 2015, forward foreign currency exchange contracts outstanding were as follows:

Contracts Purchased	Currency Sold	Counterparty	Settlement Date	Unrealized Depreciation
INR 163,633,417	USD     2,572,448	Standard  Chartered  Bank	6/30/2015	$(28,766)

• As of April 30, 2015, OTC interest rate swaps outstanding were as follows:

Fixed Rate	Floating Rate	Counterparty	Effective Date	Expiration Date	Notional Amount (000)	Value		Premiums Paid (Received)	Unrealized Appreciation
THB 2.42%2	6 Month LIBOR	Bank of America N.A.	9/16/153	9/16/20	95,460	$	52,079	—	$	52,079
TWD 1.48%2	3 Month LIBOR	Bank of America N.A.	9/16/153	9/16/20	85,540		11,347	—		11,347
Total						$	63,426	—	$	63,426

2	Fund pays the floating rate and receives the fixed rate.
3	Forward swap.

See Notes to Consolidated Financial Statements.

10 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Schedule of Investments (continued)

• As of April 30, 2015, OTC total return swaps outstanding were as follows:¹

Reference Entity	Counterparty	Expiration Dates	Net Notional Amount		Unrealized Appreciation		Net Value of Reference Entities
Equity Securities Long/Short:	Goldman Sachs & Co.	5/01/15 — 10/03/16	$	16,712,553	$	2,478,2792	$	18,959,797
	Goldman Sachs & Co.	5/14/15 — 7/27/23	$	477,986		28,3693		499,684
	UBS AG	7/10/15	$	14,949,004		1,972,0054		16,715,866
Total					$	4,478,653	$	36,175,347

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 20-1125 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

² Amount includes $231,035 of net dividends and financing fees.

³ Amount includes $6,671 of net dividends and financing fees.

⁴ Amount includes $205,143 of net dividends and financing fees.

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 11

Consolidated Schedule of Investments (continued)

 

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 April 30, 2015, expiration dates 5/01/15 — 10/03/16:

	Shares		Value
Reference Entity — Long
Brazil
AMBEV SA		29,000	$	182,300
AMBEV SA — ADR		66,308		419,730
Banco Bradesco SA, Preference Shares		2,040		21,775
Banco do Brasil SA		24,500		216,462
Banco do Estado do Rio Grande do Sul, Preference Shares		1,400		5,432
Bradespar SA, Preference Shares		44,000		175,974
Braskem SA — ADR		24,569		203,923
Braskem SA, Preference A Shares		10,300		43,074
BRF SA		2,500		53,436
BRF SA — ADR		3,206		68,833
Cia Brasileira de Distribuicao Grupo Pao de Acucar — ADR		7,449		249,839
Cia Brasileira de Distribuicao Grupo Pao de Acucar, Preference Shares		1,700		57,551
Cia Energetica de Minas Gerais, Preference Shares		6,700		32,355
Cia Energetica de Sao Paulo, Preference ‘B’ Shares		24,600		155,130
Cia Paranaense de Energia — ADR		707		7,735
Cyrela Brazil Realty SA		10,200		39,711
EDP — Energias do Brasil SA		19,900		75,625
Even Construtora e Incorporadora SA		33,800		55,642
Gerdau SA — ADR		60,679		203,881
Gerdau SA, Preference Shares		6,000		20,014
Itau Unibanco Holding SA, Preference Shares		14,940		191,055
Itau Unibanco Holding SA, Preference Shares — ADR		32,189		412,663
JBS SA		17,200		88,713
Lojas Renner SA		1,300		45,326
Metalurgica Gerdau SA, Preference Shares		25,200		82,301
Multiplus SA		15,400		171,227
Petroleo Brasileiro SA — ADR		1,109		9,626
Petroleo Brasileiro SA, Preference Shares		4,800		20,790
Vale SA, Preference Shares		2,700		16,265
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		900		13,995
Via Varejo SA		2,500		15,682
				3,356,065
Chile
Banco Santander Chile — ADR		8,559		186,672
China
Anhui Conch Cement Co., Ltd., Class H		49,500		200,141
Anhui Expressway Co., Ltd., Class H		38,000		32,819
Anta Sports Products Ltd.		143,000		315,131
Bank of China Ltd., Class H		408,000		279,563
Beijing Capital International Airport Co. Ltd., Class H		404,000		429,402
Byd Co. Ltd., Class H		7,000		42,290
China Biologic Products, Inc.		1,038		99,274
China Cinda Asset Management Co. Ltd.		263,000		156,074
China Citic Bank Corp. Ltd., Class H		110,000		99,754
China CNR Corp., Ltd.		10,500		21,446
China Communications Construction Co. Ltd., Class H		7,000		12,732

	Shares		Value
Reference Entity — Long
China (concluded)
China Communications Services Corp. Ltd., Class H		76,000	$	42,829
China Construction Bank Corp., Class H		714,000		693,104
China Everbright Bank Co. Ltd., Class H		165,000		111,795
China International Marine Containers Group Co. Ltd., Class H		3,600		9,701
China Life Insurance Co. Ltd., Class H		69,000		334,876
China Medical System Holdings Ltd.		38,000		67,061
China Pacific Insurance Group Co. Ltd., Class H		18,200		98,649
China Railway Group Ltd., Class H		184,000		258,217
China Southern Airlines Co. Ltd., Class H		86,000		84,513
China Unicom Hong Kong Ltd.		46,000		86,394
CSR Corp. Ltd., Class H		30,000		57,834
Dalian Wanda Commercial Properties Co., Ltd.		21,900		179,574
Datang International Power Generation Co. Ltd., Class H		210,000		122,843
Dongfeng Motor Group Co. Ltd., Class H		156,000		259,172
Great Wall Motor Co. Ltd., Class H		10,500		79,670
Greentown China Holdings Ltd.		7,500		9,305
Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd., Class H		14,000		53,540
Guangzhou R&F Properties Co. Ltd., Class H		70,000		89,281
Industrial & Commercial Bank of China Ltd., Class H		381,000		330,503
Intime Retail Group Co. Ltd.		196,500		219,714
Jiangsu Expressway Co. Ltd., Class H		14,000		19,222
Jiangxi Copper Co. Ltd., Class H		8,000		16,510
Lenovo Group Ltd.		92,000		158,200
Longfor Properties Co. Ltd.		38,000		65,955
Lonking Holdings Ltd.		105,000		26,042
Luoyang Glass Co., Ltd.		8,000		6,448
Metallurgical Corp. of China, Ltd.		85,000		50,161
New China Life Insurance Co. Ltd., Class H		15,500		95,916
Ping An Insurance Group Co. of China Ltd., Class H		35,500		507,694
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		47,600		148,162
Shenzhen Expressway Co., Ltd.		58,000		55,330
Shenzhou International Group Holdings Ltd.		3,000		14,110
Sihuan Pharmaceutical Holdings Group Ltd.		131,000		74,538
Sino-Ocean Land Holdings Ltd.		432,500		359,795
Sinopharm Group Co. Ltd., Class H		22,800		108,295
TCL Communication Technology Holdings, Ltd.		40,000		42,572
Tencent Holdings Ltd.		31,900		658,380
Weichai Power Co. Ltd., Class H		3,000		11,886
Zhejiang Expressway Co. Ltd., Class H		408,000		647,983
Zhuzhou CSR Times Electric Co. Ltd., Class H		14,000		119,043
ZTE Corp., Class H		800		2,692
				8,066,135
Czech Republic
CEZ AS		4,059		105,454
Hong Kong
Belle International Holdings Ltd.		111,000		142,465
China Merchants Holdings International Co. Ltd.		16,000		72,587
China Mobile Ltd.		41,500		592,756
China Mobile, Ltd. — ADR		3,744		267,434
China Overseas Land & Investment Ltd.		40,000		166,615
China Power International Development, Ltd.		554,000		357,145
China Resources Cement Holdings Ltd.		262,000		166,513

See Notes to Consolidated Financial Statements.

12 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Schedule of Investments (continued)

 

	Shares		Value
Reference Entity — Long
Hong Kong (concluded)
China Resources Land Ltd.		72,222	$	262,036
China Taiping Insurance Holdings Co. Ltd.		30,400		112,939
China Traditional Chinese Medicine Co., Ltd.		24,000		18,688
China Travel International Inv HK		890,000		396,475
China Unicom Hong Kong, Ltd. — ADR		3,930		73,845
Franshion Properties China Ltd.		268,000		108,277
KWG Property Holding Ltd.		141,000		142,466
REXLot Holdings, Ltd.		625,000		46,548
Shanghai Industrial Holdings, Ltd.		48,000		191,375
Shimao Property Holdings Ltd.		68,000		160,093
Sino Biopharmaceutical Ltd.		240,000		274,003
Skyworth Digital Holdings Ltd.		66,000		58,795
Yuexiu Property Co. Ltd.		144,000		35,211
				3,646,266
Hungary
MOL Hungarian Oil & Gas PLC		4,067		226,235
OTP Bank PLC		7,019		155,206
				381,441
Indonesia
Adaro Energy Tbk PT		1,155,200		77,780
Bank Negara Indonesia Persero Tbk PT		7,700		3,800
Indofood Sukses Makmur Tbk PT		26,900		13,962
Lippo Karawaci Tbk PT		45,300		4,133
Matahari Putra Prima Tbk PT		363,100		110,721
Pembangunan Perumahan Persero Tbk PT		26,400		7,955
Telekomunikasi Indonesia Persero Tbk PT		49,400		9,935
Telekomunikasi Indonesia Persero Tbk PT — ADR		2,906		120,250
United Tractors Tbk PT		182,300		299,752
				648,288
Malaysia
British American Tobacco Malaysia Bhd		27,500		516,228
IFCA MSC BHD		26,700		11,529
IOI Corp. Bhd		24,400		29,734
KNM Group BHD		69,000		12,343
MISC Bhd		22,800		58,341
YTL Power International Bhd		89,000		39,983
				668,158
Mexico
Alfa SAB de CV, Series A		11,300		22,943
Arca Continental SAB de CV		6,200		38,089
Gentera SAB de CV		6,100		10,413
Gruma SAB de CV		54,824		661,054
Grupo Aeroportuario del Pacifico SAB de CV — ADR		5,543		393,830
Grupo Aeroportuario del Pacifico SAB de CV, Class B		45,700		325,369
Grupo Bimbo SAB de CV, Series A		104,600		280,897
OHL Mexico SAB de CV		178,000		358,622
Wal-Mart de Mexico SAB de C.V.		324,706		767,002
				2,858,219
Peru
Compania de Minas Buenaventura SA — ADR		1,645		18,391
Philippines
Energy Development Corp.		578,900		104,991
Globe Telecom, Inc.		3,320		162,318
Jollibee Foods Corp.		5,540		24,722

	Shares		Value
Reference Entity — Long
Philippines (concluded)
Metropolitan Bank & Trust Co.		4	$	9
Universal Robina Corp.		35,460		172,924
				464,964
Poland
Bank Handlowy w Warszawie SA		751		23,783
Enea SA		35,519		160,829
Grupa Azoty SA		193		4,396
KGHM Polska Miedz SA		6,569		230,326
PGE SA		68,002		391,293
Polski Koncern Naftowy Orlen SA		12,743		242,010
Polskie Gornictwo Naftowe i Gazownictwo SA		20,412		36,817
Tauron Polska Energia SA		108,388		144,967
				1,234,421
Russia
Alrosa AO		99,600		132,410
Gazprom OAO		37,450		111,710
Gazprom OAO — ADR		1,821		10,669
Lukoil OAO — ADR		1,696		86,760
MMC Norilsk Nickel		415		77,977
MMC Norilsk Nickel OJSC — ADR		3,321		62,559
Mobile Telesystems — ADR		8,162		98,597
Mobile TeleSystems OJSC		7,700		39,368
Moscow Exchange MICEX-RTS OAO		51,100		76,544
Novolipetsk Steel OJSC		9,270		12,222
Novolipetsk Steel OJSC, -GDR		4,957		65,432
Rosneft Oil Co.		9,920		49,142
Severstal OAO		4,280		47,892
Sistema JSFC		60,200		18,508
Sistema JSFC — GDR		22,129		167,074
Surgutneftegas OAO		113,800		84,529
Surgutneftegas OAO — ADR		5,764		41,748
Tatneft OAO		12,132		69,438
Tatneft OAO — ADR		1,358		46,582
				1,299,161
South Africa
Barclays Africa Group Ltd.		366		5,863
Barloworld Ltd.		2,797		22,313
Bidvest Group Ltd.		14,260		386,504
Clicks Group, Ltd.		2,467		18,906
FirstRand Ltd.		76,237		364,191
The Foschini Group Ltd.		4,725		69,961
Investec Ltd.		1,206		11,467
Liberty Holdings Ltd.		412		5,742
Mediclinic International Ltd.		6,791		71,913
MMI Holdings Ltd.		5,200		14,796
Mr. Price Group Ltd.		2,646		56,492
MTN Group Ltd.		4,612		92,604
Netcare Ltd.		33,439		116,977
Sanlam Ltd.		2,064		13,349
Sasol Ltd.		9,392		378,155
Sasol, Ltd. — ADR		16,716		672,819
Sibanye Gold, Ltd.		49,614		117,749
Standard Bank Group Ltd.		19,074		279,585
				2,699,386
South Korea
Amorepacific Corp.		24		86,955
Amorepacific Group		9		13,685
Asiana Airlines, Inc.		551		3,948
CJ O Shopping Co., Ltd.		27		6,040

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 13

Consolidated Schedule of Investments (continued)

 

	Shares		Value
Reference Entity — Long
South Korea (concluded)
Doosan Infracore Co., Ltd.		3,081	$	34,051
GS Home Shopping, Inc.		37		8,241
Hankook Tire Co., Ltd.		1,234		51,859
Hanwha Corp.		765		30,041
Hyosung Corp.		2,473		273,534
Hyundai Engineering & Construction Co., Ltd.		2,203		105,989
Hyundai Home Shopping Network Corp.		93		11,693
Hyundai Mobis		486		106,861
Hyundai Motor Co.		1,657		260,051
Hyundai Steel Co.		3,057		223,442
Industrial Bank of Korea		10,969		150,713
Kangwon Land, Inc.		9,643		328,714
KEPCO Plant Service & Engineering Co., Ltd.		146		13,252
Korea Electric Power Corp.		609		26,482
Korea Investment Holdings Co., Ltd.		634		40,593
KT Skylife Co., Ltd.		3,110		50,504
KT&G Corp.		543		48,171
LG Corp.		3,227		200,233
LG Display Co., Ltd.		2,473		68,485
LG Display Co., Ltd. — ADR		17,942		247,959
LG Electronics, Inc.		143		8,041
LG Innotek Co., Ltd.		578		53,662
Lotte Food Co., Ltd.		108		76,567
LOTTE Himart Co., Ltd.		905		60,076
Lotte Shopping Co., Ltd.		483		116,484
LS Corp.		1,998		100,444
Medy-Tox, Inc.		620		214,336
NCSoft Corp.		939		178,871
Okins Electronics Co., Ltd.		779		11,227
Poongsan Corp.		710		19,128
Samsung Card Co., Ltd.		649		24,834
Samsung Electronics Co. Ltd.		527		691,347
Samsung Electronics Co., Ltd., -GDR		587		384,947
Samsung SDS Co., Ltd.		164		39,020
Silicon Works Co., Ltd.		1,354		51,289
SK C&C Co., Ltd.		341		80,704
SK Hynix, Inc.		5,875		251,362
SK Networks Co., Ltd.		10,389		76,787
SKC Co., Ltd.		2,766		108,876
Sungwoo Hitech Co., Ltd.		13,238		139,045
Woori Bank		6,758		67,510
				5,146,053
Taiwan
Advanced Semiconductor Engineering, Inc.		32,000		45,380
Advanced Semiconductor Engineering, Inc. — ADR		34,681		247,275
Ardentec Corp.		7,000		6,553
AU Optronics Corp.		342,000		171,631
AU Optronics Corp. — ADR		53,805		270,101
Catcher Technology Co., Ltd.		28,000		327,652
Chicony Electronics Co., Ltd.		25,000		71,887
Chimei Materials Technology Corp.		46,350		49,825
China Airlines Ltd.		52,000		27,676
Compeq Manufacturing Co., Ltd.		129,000		81,654
CTCI Corp.		40,000		70,331
Elan Microelectronics Corp.		119,000		194,833
Far Eastern Department Stores Ltd.		85,445		68,671
Far Eastern New Century Corp.		23,805		26,148
Faraday Technology Corp.		151,000		207,528
Feng TAY Enterprise Co., Ltd.		59,000		364,072
First Financial Holding Co., Ltd.		465		292

	Shares		Value
Reference Entity — Long
Taiwan (concluded)
Foxconn Technology Co., Ltd.		35,000	$	99,751
Gigabyte Technology Co., Ltd.		53,000		64,310
Highwealth Construction Corp.		23,000		59,998
Hon Hai Precision Industry Co. Ltd.		29,040		87,017
Innolux Corp.		586,000		302,280
Inotera Memories, Inc.		4,000		4,594
Inventec Co. Ltd.		37,000		26,111
King Yuan Electronics Co., Ltd.		279,000		253,616
Lite-On Technology Corp.		57,000		72,018
Nanya Technology Corp.		16,000		35,536
Pegatron Corp.		31,000		91,836
Pou Chen Corp.		277,000		388,175
Realtek Semiconductor Corp.		3,070		9,561
Shin Kong Financial Holding Co., Ltd.		65,000		21,081
Siliconware Precision Industries Co.		11,000		18,071
Siliconware Precision Industries Co. — ADR		39,518		320,491
Sitronix Technology Corp.		45,000		162,332
Soft-World International Corp.		1,000		2,843
Taiwan Cement Corp.		127,000		180,361
Taiwan Cooperative Financial Holding Co., Ltd.		78,008		42,088
Taiwan Paiho, Ltd.		48,000		130,330
Taiwan PCB Techvest Co., Ltd.		15,000		24,377
Taiwan Semiconductor Manufacturing Co. Ltd.		150,000		722,141
Taiwan Semiconductor Manufacturing Co. Ltd. — ADR		9,643		235,675
Transcend Information, Inc.		1,000		3,842
United Microelectronics Corp.		288,000		137,986
United Microelectronics Corp. — ADR		52,164		126,237
Yuanta Financial Holding Co., Ltd.		768,925		446,923
				6,301,090
Thailand
Advanced Info Service PCL		1,900		13,833
Central Pattana PCL		50,900		64,851
Delta Electronics Thailand PCL		4,600		11,652
Indorama Ventures PCL		63,300		47,429
PTT Global Chemical PCL, Foreign Registered Shares		87,600		170,736
PTT PCL		40,000		431,973
Siam Cement PCL, Foreign Registered Shares		3,400		54,953
Supalai PCL		5,200		3,155
Thanachart Capital PCL		21,700		22,381
				820,963
Turkey
Akbank TAS		55,080		160,478
Arcelik AS		2,307		12,427
Enka Insaat ve Sanayi AS		123,961		266,429
Eregli Demir ve Celik Fabrikalari TAS		28,482		48,064
Haci Omer Sabanci Holding AS		123,034		449,775
KOC Holding AS		96,175		454,872
Koza Altin Isletmeleri AS		3,271		34,170
TAV Havalimanlari Holding AS		6,401		56,277
Tofas Turk Otomobil Fabrikasi AS		3,564		21,842
Turk Hava Yollari		68,676		227,814
Turkiye Is Bankasi, Class C		32,146		72,283
Yapi ve Kredi Bankasi		25,951		40,633
				1,845,064
United States
Genpact Ltd.		12,953		283,153
Total Reference Entity — Long				40,029,344

See Notes to Consolidated Financial Statements.

14 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Schedule of Investments (continued)

 

	Shares			Value
Reference Entity — Short
Brazil
Cia de Saneamento Basico do Estado de Sao Paulo — ADR		(2,026	)	$	(11,933	)
CPFL Energia SA — ADR		(6,617	)		(86,151	)
Embraer SA — ADR		(683	)		(21,296	)
Equatorial Energia SA		(43,500	)		(462,294	)
Gol Linhas Aereas Inteligentes SA — ADR		(46,262	)		(117,506	)
Kroton Educacional SA		(49,100	)		(179,260	)
Oi SA — ADR		(15,242	)		(29,417	)
Tim Participacoes SA — ADR		(5,411	)		(85,061	)
WEG SA		(1,700	)		(9,056	)
					(1,001,974	)
China
AAC Technologies Holdings, Inc.		(30,000	)		(158,361	)
Airtac International Group		(6,000	)		(49,047	)
Alibaba Group Holding, Ltd. — ADR		(2,901	)		(235,822	)
Aluminum Corp. of China Ltd. — ADR		(335	)		(5,390	)
AviChina Industry & Technology Co., Ltd., Class H		(468,000	)		(530,221	)
BBMG Corp.		(7,500	)		(9,282	)
Beijing Jingneng Clean Energy Co., Ltd.		(16,000	)		(7,909	)
Biostime International Holdings, Ltd.		(13,000	)		(59,583	)
China COSCO Holdings Co., Ltd., Class H		(73,000	)		(67,117	)
China Eastern Airlines Corp., Ltd. , Class H, Class H		(12,000	)		(9,266	)
China Longyuan Power Group Corp., Class H		(59,000	)		(73,118	)
China Minsheng Banking Corp., Ltd.		(88,500	)		(129,224	)
China Petroleum & Chemical Corp. — ADR		(1,064	)		(100,516	)
China Shanshui Cement Group, Ltd.		(763,000	)		(619,217	)
China Shipping Container Lines Co., Ltd., Class H		(43,000	)		(24,250	)
China Tian Lun Gas Holdings, Ltd.		(126,000	)		(127,617	)
CNOOC, Ltd.		(81,000	)		(138,122	)
Country Garden Holdings Co., Ltd.		(143,000	)		(77,204	)
Dalian Port PDA Co., Ltd.		(40,000	)		(21,778	)
Dongfang Electric Corp., Ltd., Class H		(35,200	)		(79,806	)
ENN Energy Holdings Ltd.		(30,000	)		(215,922	)
Fosun International, Ltd.		(70,000	)		(174,473	)
Guangshen Railway Co., Ltd.		(56,000	)		(37,085	)
Haitian International Holdings, Ltd.		(11,000	)		(27,359	)
Huadian Fuxin Energy Corp., Ltd.		(32,000	)		(17,212	)
Parkson Retail Group, Ltd.		(26,500	)		(6,714	)
PetroChina Co., Ltd. — ADR		(1,733	)		(223,418	)
Semiconductor Manufacturing International Corp.		(4,083,000	)		(449,973	)
Shandong Weigao Group Medical Polymer Co., Ltd., Class H		(48,000	)		(44,360	)
Shanghai Electric Group Co., Ltd.		(40,000	)		(40,788	)
Shui On Land Ltd.		(1,166,500	)		(376,996	)
Sichuan Expressway Co., Ltd.		(46,000	)		(25,221	)
SINA Corp.		(578	)		(25,429	)
Sinopec Engineering Group Co., Ltd.		(40,500	)		(43,716	)
SOHO China, Ltd.		(71,500	)		(54,241	)
Sohu.com, Inc.		(502	)		(33,358	)
Sunac China Holdings, Ltd.		(106,000	)		(139,384	)
Sunny Optical Technology Group Co., Ltd.		(63,000	)		(140,194	)
Tingyi Cayman Islands Holding Corp.		(332,000	)		(701,107	)
Uni-President China Holdings, Ltd.		(745,000	)		(602,686	)
Want Want China Holdings, Ltd.		(106,000	)		(116,273	)
Wisdom Holdings Group		(80,000	)		(69,775	)
Yanzhou Coal Mining Co., Ltd., Class H		(2,000	)		(2,000	)
					(6,090,534	)

	Shares			Value
Reference Entity — Short
Colombia
Bancolombia SA — ADR		(9,051	)	$	(409,739	)
Hong Kong
Alibaba Pictures Group, Ltd.		(40,000	)		(19,676	)
Beijing Enterprises Holdings Ltd.		(22,000	)		(201,052	)
Beijing Enterprises Water Group Ltd.		(28,000	)		(24,148	)
Brilliance China Automotive Holdings Ltd.		(36,000	)		(67,562	)
China Agri-Industries Holdings Ltd.		(539,000	)		(307,797	)
China Everbright International, Ltd.		(40,000	)		(74,590	)
China Gas Holdings, Ltd.		(62,000	)		(109,544	)
China High Speed Transmission Equipment Group Co., Ltd.		(11,000	)		(9,907	)
China Oceanwide Holdings, Ltd.		(440,000	)		(68,352	)
China Resources Enterprise, Ltd.		(46,101	)		(141,224	)
China Resources Gas Group, Ltd.		(4,000	)		(13,891	)
China Resources Power Holdings Co., Ltd.		(30,000	)		(90,500	)
China State Construction International Holdings Ltd.		(64,000	)		(123,349	)
CITIC, Ltd.		(37,000	)		(74,018	)
Hopewell Highway Infrastructure, Ltd.		(386,500	)		(192,255	)
Kunlun Energy Co., Ltd.		(248,000	)		(294,413	)
Lee & Man Paper Manufacturing, Ltd.		(12,000	)		(6,799	)
Poly Property Group Co., Ltd.		(123,000	)		(78,807	)
Sinopec Kantons Holdings Ltd.		(80,000	)		(72,302	)
Towngas China Co., Ltd.		(219,000	)		(234,857	)
					(2,205,043	)
Indonesia
Bumi Serpong Damai Tbk PT		(110,200	)		(15,790	)
Charoen Pokphand Indonesia Tbk PT		(233,900	)		(51,003	)
Jasa Marga Persero Tbk PT		(18,100	)		(8,623	)
Perusahaan Gas Negara Persero Tbk PT		(98,100	)		(30,921	)
Surya Citra Media Tbk PT		(42,900	)		(9,565	)
XL Axiata Tbk PT		(125,500	)		(38,950	)
					(154,852	)
Malaysia
Gamuda BHD		(45,000	)		(66,045	)
Lafarge Malaysia BHD		(24,800	)		(67,196	)
Petronas Dagangan BHD		(2,500	)		(15,027	)
					(148,268	)
Mexico
Alsea SAB de C.V.		(13,900	)		(41,740	)
Cemex SAB de C.V.		(39,832	)		(38,425	)
Cemex SAB de C.V. — ADR		(6,239	)		(60,019	)
Fibra Uno Administracion SA de C.V.		(174,100	)		(434,399	)
Fomento Economico Mexicano SAB de C.V.		(31,000	)		(281,025	)
Fomento Economico Mexicano SAB de C.V. — ADR		(7,009	)		(634,244	)
Genomma Lab Internacional SAB de C.V.		(232,500	)		(274,296	)
Grupo Financiero Inbursa SAB de C.V.		(42,600	)		(101,710	)
Grupo Lala SAB de C.V.		(59,900	)		(121,307	)
Grupo Televisa SAB — ADR		(793	)		(28,873	)
Mexichem SAB de C.V.		(37,721	)		(108,034	)
Mexico Real Estate Management SA de C.V.		(131,300	)		(199,064	)
Minera Frisco SAB de C.V., Series A-1		(97,800	)		(81,213	)
PLA Administradora Industrial S de RL de C.V.		(85,513	)		(168,886	)
Promotora y Operadora de Infraestructura SAB de C.V.		(3,400	)		(39,090	)
Southern Copper Corp.		(8,834	)		(287,812	)
					(2,900,137	)

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 15

Consolidated Schedule of Investments (continued)

 

	Shares			Value
Reference Entity — Short
Poland
Cyfrowy Polsat SA		(2,238	)	$	(15,602	)
Powszechny Zaklad Ubezpieczen SA		(90	)		(11,738	)
					(27,340	)
South Africa
Aspen Pharmacare Holdings, Ltd.		(547	)		(16,634	)
Imperial Holdings, Ltd.		(1,256	)		(21,033	)
Nampak Ltd.		(28,660	)		(102,641	)
Remgro Ltd.		(29,462	)		(654,401	)
RMB Holdings, Ltd.		(4,490	)		(27,020	)
Woolworths Holdings, Ltd.		(1,547	)		(11,638	)
					(833,367	)
South Korea
Able C&C Co., Ltd.		(270	)		(7,971	)
Chabiotech Co., Ltd.		(24,383	)		(372,857	)
CJ Korea Express Co., Ltd.		(26	)		(4,960	)
Daelim Industrial Co., Ltd.		(968	)		(74,548	)
Daewoo Engineering & Construction Co., Ltd.		(6,778	)		(44,874	)
Doosan Corp.		(2,336	)		(270,571	)
Eo Technics Co., Ltd.		(416	)		(42,836	)
Gamevil, Inc.		(337	)		(37,092	)
Halla Visteon Climate Control Corp.		(1,193	)		(44,758	)
Hanjin Heavy Industries & Construction Co., Ltd.		(1,009	)		(5,838	)
Hite Jinro Co., Ltd.		(3,822	)		(80,912	)
Hotel Shilla Co., Ltd.		(6,265	)		(623,690	)
Hyundai Glovis Co., Ltd.		(84	)		(18,426	)
Hyundai Heavy Industries Co., Ltd.		(1,587	)		(206,197	)
Hyundai Mipo Dockyard		(2,910	)		(241,923	)
Hyundai Securities Co., Ltd.		(2,833	)		(29,335	)
i-SENS, Inc.		(1,539	)		(70,801	)
Korea Aerospace Industries, Ltd.		(629	)		(38,424	)
LG International Corp.		(2,880	)		(110,206	)
Lotte Confectionery Co., Ltd.		(54	)		(93,932	)
POSCO — ADR		(126	)		(7,444	)
Samsung Fine Chemicals Co., Ltd.		(2,158	)		(87,328	)
Samsung Heavy Industries Co., Ltd.		(1,661	)		(27,977	)
Samsung SDI Co., Ltd.		(32	)		(3,563	)
Samsung Techwin Co., Ltd.		(6,363	)		(163,432	)
Seegene, Inc.		(414	)		(13,775	)
Seoul Semiconductor Co., Ltd.		(614	)		(11,066	)
SK Chemicals Co., Ltd.		(137	)		(8,898	)
					(2,743,634	)
Taiwan
Advantech Co., Ltd.		(1,000	)		(8,238	)
Asia Cement Corp.		(9,000	)		(11,381	)
AVY Precision Technology, Inc.		(4,000	)		(9,785	)
Career Technology MFG. Co., Ltd.		(143,000	)		(142,019	)
Center Laboratories, Inc.		(1,000	)		(2,889	)
Chang Hwa Commercial Bank		(603,000	)		(368,438	)
Cheng Shin Rubber Industry Co., Ltd.		(1,000	)		(2,393	)
China Steel Chemical Corp.		(1,000	)		(4,856	)
China Steel Corp.		(23,000	)		(19,319	)
CTBC Financial Holding Co., Ltd.		(184,000	)		(143,221	)
eMemory Technology, Inc.		(819	)		(9,248	)
Evergreen Marine Corp. Taiwan Ltd.		(525,000	)		(357,133	)
Everlight Chemical Industrial Corp.		(84,000	)		(76,728	)
Far EasTone Telecommunications Co., Ltd.		(77,000	)		(183,587	)
Formosa Petrochemical Corp.		(3,000	)		(7,734	)
Genius Electronic Optical Co., Ltd.		(15,000	)		(42,743	)
Giant Manufacturing Co., Ltd.		(17,000	)		(146,627	)

	Shares			Value
Reference Entity — Short
Taiwan (concluded)
Gigastorage Corp.		(52,000	)	$	(45,392	)
HannStar Display Corp.		(527,000	)		(106,420	)
Hiwin Technologies Corp.		(20,000	)		(152,494	)
Hotai Motor Co., Ltd.		(11,000	)		(190,590	)
Kuo Toong International Co., Ltd.		(2,000	)		(3,383	)
MediaTek, Inc.		(1,000	)		(12,854	)
Parade Technologies, Ltd.		(6,000	)		(59,367	)
Phison Electronics Corp.		(6,000	)		(55,336	)
Pixart Imaging, Inc.		(7,000	)		(21,335	)
President Chain Store Corp.		(22,000	)		(162,804	)
Quanta Computer, Inc.		(3,000	)		(7,527	)
ScinoPharm Taiwan, Ltd.		(92,249	)		(154,467	)
Taiwan Mobile Co., Ltd.		(69,000	)		(243,090	)
Tong Hsing Electronic Industries, Ltd.		(15,000	)		(48,054	)
TPK Holding Co., Ltd.		(13,000	)		(80,755	)
U-Ming Marine Transport Corp.		(159,000	)		(238,549	)
Unimicron Technology Corp.		(69,000	)		(41,072	)
Wistron Corp.		(13,000	)		(11,059	)
					(3,170,887	)
Thailand
BEC World PCL		(36,100	)		(44,078	)
CP ALL PCL		(2,100	)		(2,675	)
IRPC PCL		(322,900	)		(45,058	)
					(91,811	)
Turkey
Anadolu Efes Biracilik Ve Malt Sanayii AS		(5,863	)		(49,358	)
Emlak Konut Gayrimenkul Yatirim Ortakligi		(33,868	)		(39,121	)
Turkcell Iletisim Hizmetleri AS		(121,657	)		(541,685	)
Turkcell Iletisim Hizmetleri AS — ADR		(52,565	)		(581,369	)
Turkiye Sise ve Cam Fabrikalari		(36,145	)		(46,190	)
					(1,257,723	)
United States
Bizlink Holding, Inc.		(8,000	)		(34,238	)
Total Reference Entity — Short					(21,069,547	)
Net Value of Reference Entity — Goldman Sachs & Co.				$	18,959,797

See Notes to Consolidated Financial Statements.

16 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Schedule of Investments (continued)

 

The following table represents the individual long positions and related values of the equity securities underlying the total return swap with Goldman Sachs & Co. as of April 30, 2015, expiration dates 5/14/15 — 7/27/23:

	Shares		Value
Reference Entity — Long
Australia
BHP Billiton Ltd.		138	$	3,524
Ramsay Health Care Ltd.		52		2,564
Rio Tinto Ltd.		36		1,623
Woodside Petroleum Ltd.		44		1,213
				8,924
Austria
Andritz AG		9		527
BUWOG AG		9		182
IMMOFINANZ AG		181		544
Raiffeisen Bank International AG		16		266
Vienna Insurance Group AG		17		677
				2,196
Belgium
Anheuser-Busch InBev NV		57		6,940
KBC Groep NV		14		921
				7,861
Canada
BlackBerry Ltd.		186		1,889
Brookfield Renewable Energy Partners LP		38		1,243
Eldorado Gold Corp.		249		1,240
First Quantum Minerals Ltd.		54		827
Kinross Gold Corp.		387		940
Methanex Corp.		8		481
New Gold, Inc.		163		547
Yamana Gold, Inc.		113		432
				7,559
Denmark
Chr Hansen Holding A/S		15		726
Novo Nordisk A/S, Class B		19		1,067
Rockwool International A/S, -B Shares		3		397
				2,190
Finland
Kone OYJ, Class B		21		903
Nokia OYJ		81		547
Valmet Corp.		52		603
				2,053
France
Airbus Group NV		29		2,010
Casino Guichard-Perrachon SA		11		973
Christian Dior SA		4		782
Danone SA		25		1,809
Edenred		32		858
Imerys SA		19		1,446
Lafarge SA		12		876
Pernod Ricard SA		12		1,491
Renault SA		11		1,157
SEB SA		10		926
Societe BIC SA		10		1,713
Valeo SA		10		1,603
				15,644

	Shares			Value
Reference Entity — Long
Germany
adidas AG		7		$	573
Bayer AG, Registered Shares		5			720
Bayerische Motoren Werke AG		25			2,949
Daimler AG, Registered Shares		40			3,846
Fuchs Petrolub SE, Preference Shares		20			842
GEA Group AG		24			1,153
Henkel AG & Co. KGaA, Preference Shares		20			2,323
MAN SE		6			651
Merck KGaA		22			2,372
Puma SE		3			612
Symrise AG		21			1,273
Volkswagen AG, Preference Shares		15	��		3,862
Wacker Chemie AG		5			620
					21,796
Hong Kong
Bank of East Asia Ltd.		400			1,735
BOC Hong Kong Holdings Ltd.		500			1,939
Cathay Pacific Airways Ltd.		1,000			2,575
Champion REIT		1,000			542
CLP Holdings Ltd.		500			4,377
Galaxy Entertainment Group Ltd.		1,000			4,806
Hang Seng Bank Ltd.		200			3,896
Henderson Land Development Co. Ltd.		1,210			9,701
Hong Kong & China Gas Co. Ltd.		1,540			3,668
Kerry Logistics Network, Ltd.		250			403
MTR Corp.		1,000			4,915
Sands China Ltd.		400			1,630
Wharf Holdings Ltd.		1,000			7,205
Wynn Macau Ltd.		400			810
					48,202
Ireland
Accenture PLC, Class A		47			4,355
Israel
Bank Leumi Le-Israel BM		545			2,118
Israel Chemicals Ltd.		121			846
The Israel Corp. Ltd.		2			737
					3,701
Italy
Pirelli & C SpA		121			2,093
Prysmian SpA		72			1,468
Saipem SpA		30			398
Tenaris SA		93			1,428
					5,387
Japan
Advantest Corp.		100			1,179
Nexon Co. Ltd.		200			2,551
Nitto Denko Corp.		100			6,409
Sharp Corp.		1,000			2,155
Sumco Corp.		100			1,509
Tokyo Electron Ltd.		100			5,481
Tokyo Seimitsu Co. Ltd.		100			2,155
Toyota Motor Corp.		100			6,961
Yamaha Motor Co. Ltd.		100			2,353
					30,753

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 17

Consolidated Schedule of Investments (continued)

 

	Shares		Value
Reference Entity — Long
Netherlands
Akzo Nobel NV		21	$	1,607
Chicago Bridge & Iron Co. NV		5		238
Koninklijke Boskalis Westminster NV		39		2,026
Royal Dutch Shell PLC, Class B		227		7,268
Unilever NV CVA		160		6,979
				18,118
Norway
Telenor ASA		53		1,197
Singapore
Flextronics International Ltd.		213		2,455
Kenon Holdings Ltd.		14		303
				2,758
Spain
Banco Bilbao Vizcaya Argentaria SA		144		1,447
Banco Santander SA		390		2,949
Banco Santander SA, Rights		390		65
Indra Sistemas SA		38		447
Obrascon Huarte Lain SA		12		278
Tecnicas Reunidas SA		10		465
Telefonica SA		88		1,340
				6,991
Sweden
Alfa Laval AB		28		523
Atlas Copco AB, Class A		50		1,561
Investment AB Kinnevik, Class B		27		930
Telefonaktiebolaget LM Ericsson, Class B		58		634
Volvo AB, Class B		63		870
				4,518
Switzerland
ABB Ltd., Registered Shares		89		1,950
Cie Financiere Richemont SA, Registered Shares		23		2,050
Clariant AG		37		812
DKSH Holding AG		11		866
Dufry AG		6		882
Glencore PLC		298		1,416
Holcim Ltd., Registered Shares		12		964
Nestle SA, Registered Shares		113		8,767
OC Oerlikon Corp. AG, Registered Shares		108		1,413
Schindler Holding AG, Participation Certificates		17		2,876
SGS SA, Registered Shares		1		1,938
Sika AG — Bearer Shares		1		3,432
The Swatch Group AG, Bearer Shares		2		894
				28,260
United Kingdom
3i Group PLC		143		1,108
BG Group PLC		103		1,866
British American Tobacco PLC		84		4,615
Burberry Group PLC		21		560
Diageo PLC		64		1,777
Eurasian Natural Resources Corp. PLC		448		1,496
G4S PLC		140		628
HSBC Holdings PLC		756		7,552
Intertek Group PLC		26		1,039
Investec PLC		60		573
Mondi PLC		47		952
Noble Corp. PLC		45		779

	Shares		Value
Reference Entity — Long
United Kingdom (concluded)
Old Mutual PLC		503	$	1,804
Rexam PLC		135		1,198
Rotork PLC		11		397
SABMiller PLC		69		3,652
Standard Chartered PLC		92		1,506
Vodafone Group PLC		1,091		3,844
				35,346
United States
3M Co.		13		2,033
Actavis PLC		2		566
Adobe Systems, Inc.		9		685
Advanced Micro Devices, Inc.		151		341
The AES Corp.		83		1,100
Air Lease Corp.		35		1,352
Alexion Pharmaceuticals, Inc.		6		1,015
Amazon.com, Inc.		10		4,218
American International Group, Inc.		22		1,238
Amgen, Inc.		29		4,579
Apple, Inc.		133		16,645
Applied Materials, Inc.		83		1,643
Atmel Corp.		142		1,076
Avon Products, Inc.		76		621
The Boeing Co.		17		2,437
Bristol-Myers Squibb Co.		47		2,995
Bunge Ltd.		21		1,814
California Resources Corp.		4		37
Caterpillar, Inc.		31		2,693
Chevron Corp.		41		4,553
Citigroup, Inc.		141		7,518
The Coca-Cola Co.		60		2,434
Colgate-Palmolive Co.		19		1,278
Corning, Inc.		114		2,386
Costco Wholesale Corp.		6		858
Cypress Semiconductor Corp.		84		1,119
Dresser-Rand Group, Inc.		12		992
Dril-Quip, Inc.		9		717
eBay, Inc.		15		874
Entropic Communications, Inc.		250		755
Expeditors International of Washington, Inc.		56		2,567
Exxon Mobil Corp.		104		9,087
Facebook, Inc., Class A		56		4,411
FedEx Corp.		4		678
Fluor Corp.		12		722
FMC Corp.		18		1,068
General Electric Co.		135		3,656
Google, Inc., Class A		16		8,780
Halyard Health, Inc.		1		48
Hewlett-Packard Co.		19		626
The Home Depot, Inc.		74		7,917
Honeywell International, Inc.		13		1,312
Intel Corp.		182		5,924
International Business Machines Corp.		24		4,111
Jabil Circuit, Inc.		41		923
Johnson & Johnson		89		8,829
Kansas City Southern		7		717
KBR, Inc.		32		559
Kimberly-Clark Corp.		14		1,536
Kosmos Energy Ltd.		128		1,252
Las Vegas Sands Corp.		16		846
Lear Corp.		16		1,777

See Notes to Consolidated Financial Statements.

18 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Schedule of Investments (continued)

 

	Shares		Value
Reference Entity — Long
United States (concluded)
Marvell Technology Group Ltd.		49	$	687
Mastercard, Inc., Class A		27		2,436
Merck & Co., Inc.		93		5,539
MGM Resorts International		80		1,692
Micron Technology, Inc.		37		1,041
Microsoft Corp.		190		9,242
Monsanto Co.		5		570
The Mosaic Co.		26		1,144
Newfield Exploration Co.		26		1,020
NIKE, Inc., Class B		19		1,878
NVIDIA Corp.		42		932
Occidental Petroleum Corp.		12		961
ON Semiconductor Corp.		151		1,740
Oracle Corp.		93		4,057
Pall Corp.		32		3,114
Paragon Offshore PLC		14		25
PepsiCo, Inc.		33		3,139
Pfizer, Inc.		396		13,436
Philip Morris International, Inc.		28		2,337
The Procter & Gamble Co.		73		5,804
QUALCOMM, Inc.		60		4,080
Raytheon Co.		5		520
Samsonite International SA		600		2,188
SanDisk Corp.		7		469
Schlumberger Ltd.		63		5,960
Teradyne, Inc.		34		621
Texas Instruments, Inc.		29		1,572
Thermo Fisher Scientific, Inc.		18		2,262
United Technologies Corp.		19		2,161
Verizon Communications, Inc.		121		6,094
Visa, Inc., Class A		64		4,227
Visteon Corp.		11		1,115
VMware, Inc., Class A		6		529
Wal-Mart Stores, Inc.		88		6,868
Western Digital Corp.		11		1,075
Wynn Resorts Ltd.		8		889
Yum! Brands, Inc.		29		2,493
				241,835
Net Value of Reference Entity — Goldman Sachs & Co.			$	499,684

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 April 30, 2015, expiration date 7/10/15:

	Shares		Value
Reference Entity — Long
Brazil
AMBEV SA		40,400	$	253,963
Banco Bradesco SA, Preference Shares		18,720		199,816
Banco do Brasil SA		24,300		214,695
Bradespar SA, Preference Shares		30,300		121,182
Braskem SA, Preference A Shares		36,800		153,896
BRF SA		3,000		64,123
Cia Brasileira de Distribuicao Grupo Pao de Acucar, Preference Shares		1,800		60,937
Cia Energetica de Sao Paulo, Preference ‘B’ Shares		10,100		63,692
Cia Paranaense de Energia, Preference ‘B’ Shares		9,700		109,171
Cyrela Brazil Realty SA		2,500		9,733
EDP — Energias do Brasil SA		20,500		77,905
Even Construtora e Incorporadora SA		14,500		23,870
Gerdau SA, Preference Shares		57,700		192,464
Itau Unibanco Holding SA, Preference Shares		30,700		392,596
JBS SA		97,900		504,942
Lojas Renner SA		2,900		101,112
Metalurgica Gerdau SA, Preference Shares		44,900		146,639
MRV Engenharia e Participacoes SA		6,400		17,524
Multiplus SA		21,500		239,052
Petroleo Brasileiro SA, Preference Shares		66,100		286,299
Suzano Papel e Celulose SA, Preference ‘A’ Shares		21,300		106,749
Telefonica Brasil SA, Preference Shares		2,800		46,466
Vale SA, Preference Shares		17,800		107,227
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao SA		1,600		24,879
				3,518,932
Chile
Aguas Andinas SA, Class A		31,333		18,533
Banco Santander Chile SA		545,445		29,366
Empresas COPEC SA		31,940		366,638
				414,537
China
Agile Property Holdings Ltd.		40,000		33,405
Agricultural Bank of China Ltd., Class H		757,000		426,176
Air China Ltd., Class H		38,000		45,832
Anhui Expressway Co., Ltd., Class H		86,000		74,274
Anta Sports Products Ltd.		91,000		200,538
Bank of Communications Co. Ltd., Class H		125,000		128,133
China Cinda Asset Management Co. Ltd.		249,000		147,766
China CNR Corp., Ltd.		15,500		31,659
China Communications Construction Co. Ltd., Class H		136,000		247,364
China Communications Services Corp. Ltd., Class H		192,000		108,201
China Construction Bank Corp., Class H		194,000		188,323
China Everbright Bank Co. Ltd., Class H		314,000		212,749
China Life Insurance Co. Ltd., Class H		1,000		4,853
China Machinery Engineering Corp.		68,000		90,271
China Medical System Holdings Ltd.		71,000		125,297
China Pacific Insurance Group Co. Ltd., Class H		10,000		54,203
China Petroleum & Chemical Corp. Class H		122,000		115,139
China Railway Construction Corp. Ltd., Class H		42,000		83,863

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 19

Consolidated Schedule of Investments (continued)

 

	Shares		Value
Reference Entity — Long
China (concluded)
China Railway Group Ltd., Class H		2,000	$	2,807
China Unicom Hong Kong Ltd.		24,000		45,075
CITIC Securities Co. Ltd., Class H		1,000		4,430
Cogobuy Group		6,000		7,574
CSPC Pharmaceutical Group Ltd.		262,000		272,461
Dalian Wanda Commercial Properties Co., Ltd.		23,600		193,514
Datang International Power Generation Co. Ltd., Class H		48,000		28,078
Dongfeng Motor Group Co. Ltd., Class H		230,000		382,112
Greentown China Holdings Ltd.		107,000		132,745
Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd., Class H		34,000		130,026
Guangzhou R&F Properties Co. Ltd., Class H		156,000		198,970
Haitong Securities Co. Ltd., Class H		17,200		56,177
Huaneng Power International, Inc., Class H		78,000		110,621
Industrial & Commercial Bank of China Ltd., Class H		16,000		13,879
Jiangsu Expressway Co. Ltd., Class H		34,000		46,683
Jintian Pharmaceutical Group Ltd.		44,000		23,415
Lenovo Group Ltd.		58,000		99,735
Longfor Properties Co. Ltd.		45,000		78,104
Lonking Holdings Ltd.		105,000		26,042
Metallurgical Corp. of China, Ltd.		248,000		146,352
PetroChina Co. Ltd., Class H		114,000		147,033
PICC Property & Casualty Co. Ltd., Class H		60,000		132,932
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		84,700		263,642
Sihuan Pharmaceutical Holdings Group Ltd.		323,000		183,784
Sino-Ocean Land Holdings Ltd.		53,500		44,506
Sinopec Shanghai Petrochemical Co. Ltd., Class H		148,000		89,414
Sinopharm Group Co. Ltd., Class H		29,200		138,694
Sinotrans Ltd., Class H		18,000		13,776
Tencent Holdings Ltd.		5,900		121,769
Weichai Power Co. Ltd., Class H		1,000		3,962
Zhejiang Expressway Co. Ltd., Class H		300,000		476,458
Zhuzhou CSR Times Electric Co. Ltd., Class H		8,000		68,025
ZTE Corp., Class H		4,000		13,460
				6,014,301
Colombia
Almacenes Exito SA		763		8,187
Cementos Argos SA		1,951		8,289
Corp. Financiera Colombiana SA		204		3,280
Ecopetrol SA		26,107		22,249
Grupo Argos SA		1,923		15,097
Grupo de Inversiones Suramericana SA		1,587		26,077
Interconexion Electrica SA		4,360		14,643
Isagen SA ESP		8,850		11,833
				109,655
Egypt
Telecom Egypt		10,596		13,700
Hong Kong
AIA Group Ltd.		800		5,320
Belle International Holdings Ltd.		116,000		148,883
China Everbright Ltd.		20,000		66,117
China Mobile Ltd.		37,000		528,482
China Overseas Land & Investment Ltd.		44,000		183,277
China Power International Development, Ltd.		383,000		246,907
China Resources Cement Holdings Ltd.		532,000		338,110
China Taiping Insurance Holdings Co. Ltd.		8,800		32,693

	Shares		Value
Reference Entity — Long
Hong Kong (concluded)
China Travel International Inv HK		48,000	$	21,383
Franshion Properties China Ltd.		362,000		146,255
Guangdong Investment Ltd.		128,000		190,869
Huabao International Holdings Ltd.		71,000		79,750
Kingboard Chemical Holdings Ltd.		68,500		124,670
KWG Property Holding Ltd.		379,000		382,940
PAX Global Technology, Ltd.		4,000		5,811
REXLot Holdings, Ltd.		200,000		14,895
Shanghai Industrial Holdings, Ltd.		3,000		11,961
Shimao Property Holdings Ltd.		65,000		153,030
Sino Biopharmaceutical Ltd.		156,000		178,102
Skyworth Digital Holdings Ltd.		240,000		213,801
Yuexiu Property Co. Ltd.		380,000		92,918
				3,166,174
Hungary
MOL Hungarian Oil & Gas PLC		8,099		450,524
Indonesia
Adaro Energy Tbk PT		1,179,200		79,396
Gudang Garam Tbk PT		4,300		16,526
Indo Tambangraya Megah Tbk PT		100		97
Indofood Sukses Makmur Tbk PT		409,100		212,335
Lippo Karawaci Tbk PT		160,200		14,616
Matahari Putra Prima Tbk PT		477,100		145,483
Pembangunan Perumahan Persero Tbk PT		392,400		118,240
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		235,500		25,748
Summarecon Agung Tbk PT		31,900		4,358
Telekomunikasi Indonesia Persero Tbk PT		889,800		178,958
United Tractors Tbk PT		154,700		254,370
				1,050,127
Malaysia
Astro Malaysia Holdings Bhd		25,500		22,451
British American Tobacco Malaysia Bhd		25,500		478,684
IFCA MSC BHD		28,900		12,479
IOI Corp. Bhd		63,000		76,771
KNM Group BHD		685,300		122,591
MISC Bhd		44,500		113,868
Tenaga Nasional Bhd		57,500		231,422
YTL Power International Bhd		78,500		35,266
				1,093,532
Philippines
Energy Development Corp.		800,400		145,163
Globe Telecom, Inc.		2,645		129,317
Jollibee Foods Corp.		15,730		70,194
Megaworld Corp.		83,000		9,840
Metro Pacific Investments Corp.		245,000		24,878
Universal Robina Corp.		21,040		102,604
				481,996
Poland
Bank Handlowy w Warszawie SA		1,730		54,786
Enea SA		29,721		134,576
KGHM Polska Miedz SA		4,489		157,395
PGE SA		56,210		323,440
Polski Koncern Naftowy Orlen SA		5,143		97,674
Polskie Gornictwo Naftowe i Gazownictwo SA		24,830		44,786
Tauron Polska Energia SA		219,992		294,236
				1,106,893

See Notes to Consolidated Financial Statements.

20 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Schedule of Investments (continued)

 

	Shares		Value
Reference Entity — Long
Russia
Alrosa AO		32,700	$	43,472
Gazprom OAO — ADR		42,567		249,398
Lukoil OAO — ADR		4,260		218,121
Magnit OJSC — GDR		690		37,855
MMC Norilsk Nickel		613		115,180
MMC Norilsk Nickel OJSC — ADR		1,259		23,717
Mobile Telesystems — ADR		2,879		34,778
Mobile TeleSystems OJSC		12,750		65,187
Moscow Exchange MICEX-RTS OAO		6,900		10,336
Severstal PAO, -GDR		169		1,873
Sistema JSFC		15,600		4,796
Surgutneftegas OAO		65,600		48,727
Tatneft OAO		5,700		32,624
Tatneft OAO — ADR		583		19,998
				906,062
South Africa
AngloGold Ashanti Ltd.		3,455		39,237
Barclays Africa Group Ltd.		1,394		22,329
Barloworld Ltd.		459		3,662
Bidvest Group Ltd.		1,042		28,243
Capitec Bank Holdings, Ltd.		235		11,065
Clicks Group, Ltd.		13,420		102,846
Exxaro Resources Ltd.		1,840		15,062
FirstRand Ltd.		63,192		301,874
Investec Ltd.		1,246		11,848
Mediclinic International Ltd.		7,414		78,510
MMI Holdings Ltd.		8,543		24,309
Mr. Price Group Ltd.		3,443		73,508
MTN Group Ltd.		22,925		460,309
Netcare Ltd.		134,922		471,986
Pick n Pay Stores Ltd.		7,577		36,278
Sasol Ltd.		381		15,340
Sibanye Gold, Ltd.		68,273		162,032
Standard Bank Group Ltd.		6,237		91,422
Truworths International Ltd.		4,112		29,970
				1,979,830
South Korea
Amorepacific Corp.		125		452,892
Asiana Airlines, Inc.		2,014		14,429
Daewoo International Corp.		405		11,815
Doosan Infracore Co., Ltd.		9,992		110,430
GOLFZON Co., Ltd.		129		15,102
Hankook Tire Co., Ltd.		4,079		171,420
Hanwha Corp.		368		14,451
Hyosung Corp.		838		92,690
Hyundai Department Store Co., Ltd.		134		18,190
Hyundai Engineering & Construction Co., Ltd.		977		47,005
Hyundai Mobis		2,667		586,414
Hyundai Motor Co.		39		6,121
Hyundai Steel Co.		2,350		171,766
Hyundai Wia Corp.		86		12,186
Kangwon Land, Inc.		2,754		93,879
Kia Motors Corp.		880		40,552
Korea Electric Power Corp.		1,690		73,488
Korea Investment Holdings Co., Ltd.		1,059		67,805
Korea Petrochemical Ind Co., Ltd.		738		119,144
KT Skylife Co., Ltd.		1,779		28,890
LG Display Co., Ltd.		2,079		57,574
LG Electronics, Inc.		1,718		96,608
LG Innotek Co., Ltd.		78		7,242

	Shares		Value
Reference Entity — Long
South Korea (concluded)
Lotte Food Co., Ltd.		18	$	12,761
Lotte Himart Co., Ltd.		312		20,711
Lotte Shopping Co., Ltd.		43		10,370
LS Corp.		311		15,635
Medy-Tox, Inc.		267		92,303
NCSoft Corp.		36		6,858
Neowiz Games Corp.		186		3,779
Poongsan Corp.		1,410		37,987
Posco ICT Co., Ltd.		1		5
Samsung Card Co., Ltd.		106		4,056
Samsung Electro-Mechanics Co., Ltd.		528		33,135
Samsung Electronics Co. Ltd.		611		801,543
Samsung Electronics Co., Ltd. -GDR		73		47,872
Samsung SDS Co., Ltd.		56		13,324
Shinhan Financial Group Co., Ltd.		748		30,958
Shinsegae Co., Ltd.		143		26,831
SK C&C Co., Ltd.		116		27,453
SK Hynix, Inc.		1,015		43,427
SK Networks Co., Ltd.		24,987		184,684
SK Telecom Co. Ltd.		72		19,294
SKC Co., Ltd.		2,390		94,076
Spigen Korea Co., Ltd.		207		28,525
Sungwoo Hitech Co., Ltd.		9,115		95,739
Tovis Co., Ltd.		381		5,532
Woori Bank		3,211		32,077
Yuhan Corp.		47		10,126
				4,009,154
Spain
Cemex Latam Holdings SA		637		3,557
Taiwan
Advanced Semiconductor Engineering, Inc.		213,000		302,061
Ardentec Corp.		24,000		22,466
AU Optronics Corp.		394,000		197,728
Cathay Financial Holding Co. Ltd.		12,000		20,964
Cheng Uei Precision Industry Co., Ltd.		11,000		21,631
Chicony Electronics Co., Ltd.		71,085		204,403
Chimei Materials Technology Corp.		600		645
China Airlines Ltd.		51,000		27,144
Compeq Manufacturing Co., Ltd.		18,000		11,394
CTCI Corp.		113,000		198,684
Elan Microelectronics Corp.		80,000		130,980
Elite Advanced Laser Corp.		14,000		60,733
Everlight Electronics Co., Ltd.		46,000		106,344
Far Eastern Department Stores Ltd.		181,077		145,530
Faraday Technology Corp.		40,000		54,974
Feng TAY Enterprise Co., Ltd.		1,000		6,171
Foxconn Technology Co., Ltd.		21,000		59,851
Gigabyte Technology Co., Ltd.		62,000		75,231
Highwealth Construction Corp.		7,000		18,260
Hon Hai Precision Industry Co. Ltd.		81,200		243,311
Innolux Corp.		1,501,311		774,431
King Yuan Electronics Co., Ltd.		298,000		270,887
Lite-On Technology Corp.		85,000		107,396
Nanya Technology Corp.		59,000		131,038
PChome Online, Inc.		6,000		101,492
Pegatron Corp.		35,000		103,686
Pou Chen Corp.		271,000		379,767
Siliconware Precision Industries Co.		117,000		192,208
Sitronix Technology Corp.		52,000		187,583
Soft-World International Corp.		23,000		65,401

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 21

Consolidated Schedule of Investments (continued)

 

	Shares			Value
Reference Entity — Long
Taiwan (concluded)
Taiwan Cement Corp.		204,000		$	289,714
Taiwan Paiho, Ltd.		19,000			51,589
Taiwan Semiconductor Manufacturing Co. Ltd.		62,000			298,485
Transcend Information, Inc.		7,000			26,895
TXC Corp.		6,000			7,788
United Microelectronics Corp.		64,000			30,664
Yuanta Financial Holding Co., Ltd.		187,250			108,836
Zhen Ding Technology Holding Ltd.		19,000			66,146
					5,102,511
Thailand
Advanced Info Service PCL		6,100			44,411
Airports of Thailand PCL		6,500			57,182
Bangkok Dusit Medical Services PCL		46,200			28,310
Central Pattana PCL		31,600			40,261
Delta Electronics Thailand PCL		1,900			4,813
Kasikornbank PCL, Foreign Registered Shares		28,100			178,396
Krung Thai Bank PCL		29,100			17,655
Nawarat Patanakarn PCL		6,576			363
PTT PCL		4,200			45,357
Siam Cement PCL, Foreign Registered Shares		2,200			35,558
Siam Commercial Bank PCL		900			4,341
Thanachart Capital PCL		100,700			103,862
TMB Bank PCL		130,900			10,324
					570,833
Turkey
Arcelik AS		15,379			82,840
Enka Insaat ve Sanayi AS		197,431			424,339
Eregli Demir ve Celik Fabrikalari TAS		9,965			16,816
KOC Holding AS		17,250			81,586
Koza Altin Isletmeleri AS		16,554			172,931
TAV Havalimanlari Holding AS		32,735			287,802
Tofas Turk Otomobil Fabrikasi AS		15,455			94,715
Tupras Turkiye Petrol Rafinerileri AS		9,018			219,044
Turk Hava Yollari		85,197			282,618
Turk Telekomunikasyon AS		67,790			187,370
Turkiye Is Bankasi, Class C		14,606			32,843
Yapi ve Kredi Bankasi		3,518			5,508
					1,888,412
United Arab Emirates
Emaar Properties PJSC		11,503			25,508
United Kingdom
British American Tobacco PLC		1,600			88,509
Old Mutual PLC		1,147			4,131
					92,640
Total Reference Entity — Long					31,998,878
Reference Entity — Short
Brazil
AES Tiete SA		(800	)		(4,594	)
BB Seguridade Participacoes SA		(7,400	)		(86,576	)
CCR SA		(17,900	)		(98,621	)
Cia de Transmissao de Energia Eletrica Paulista		(8,100	)		(114,257	)
Cielo SA		(73,040	)		(1,016,710	)
Duratex SA		(38,110	)		(107,388	)
EcoRodovias Infraestrutura e Logistica SA		(2,900	)		(8,537	)
Equatorial Energia SA		(1,100	)		(11,690	)

	Shares			Value
Reference Entity — Short
Brazil (concluded)
Iguatemi Empresa de Shopping Centers SA		(1,500	)	$	(13,442	)
Itausa — Investimentos Itau SA		(26,500	)		(93,319	)
Klabin SA		(99,800	)		(612,126	)
Kroton Educacional SA		(5,600	)		(20,445	)
Localiza Rent a Car SA		(1,300	)		(15,153	)
Ultrapar Participacoes SA		(2,700	)		(62,138	)
					(2,264,996	)
Chile
Colbun SA		(152,676	)		(46,191	)
China
AAC Technologies Holdings, Inc.		(11,500	)		(60,705	)
Aluminum Corp. of China Ltd., Class H		(100,000	)		(64,520	)
AviChina Industry & Technology Co., Ltd., Class H		(56,000	)		(63,445	)
BBMG Corp.		(59,500	)		(73,639	)
China Coal Energy Co., Ltd.		(105,000	)		(69,020	)
China Huishan Dairy Holdings Co., Ltd.		(715,000	)		(152,425	)
China Longyuan Power Group Corp., Class H		(5,000	)		(6,196	)
China Minsheng Banking Corp., Ltd.		(5,000	)		(7,301	)
China Modern Dairy Holdings, Ltd.		(291,000	)		(118,389	)
China Molybdenum Co., Ltd., Class H		(91,000	)		(91,022	)
China National Building Material Co., Ltd., Class H		(48,000	)		(58,221	)
China Shanshui Cement Group, Ltd.		(23,000	)		(18,666	)
China Shipping Container Lines Co., Ltd., Class H		(81,000	)		(45,680	)
China Tian Lun Gas Holdings, Ltd.		(27,000	)		(27,346	)
CNOOC, Ltd.		(4,000	)		(6,821	)
ENN Energy Holdings Ltd.		(10,000	)		(71,974	)
Evergrande Real Estate Group, Ltd.		(34,000	)		(32,150	)
Fosun International, Ltd.		(7,500	)		(18,694	)
Guangshen Railway Co., Ltd.		(90,000	)		(59,601	)
Haitian International Holdings, Ltd.		(19,000	)		(47,256	)
Hilong Holding, Ltd.		(292,000	)		(109,999	)
Kangda International Environmental Co., Ltd.		(9,000	)		(4,940	)
Kingdee International Software Group Co., Ltd.		(186,000	)		(110,357	)
Kingsoft Corp., Ltd.		(24,000	)		(93,824	)
Li Ning Co., Ltd.		(155,500	)		(86,010	)
Maanshan Iron & Steel Co., Ltd., Class H		(226,000	)		(87,818	)
Semiconductor Manufacturing International Corp.		(103,000	)		(11,351	)
Shanghai Electric Group Co., Ltd.		(12,000	)		(12,236	)
Shui On Land Ltd.		(352,000	)		(113,761	)
Sichuan Expressway Co., Ltd.		(32,000	)		(17,545	)
Sinopec Engineering Group Co., Ltd.		(6,000	)		(6,476	)
SOHO China, Ltd.		(32,000	)		(24,276	)
Sunac China Holdings, Ltd.		(58,000	)		(76,267	)
Sunny Optical Technology Group Co., Ltd.		(128,000	)		(284,839	)
Tingyi Cayman Islands Holding Corp.		(80,000	)		(168,942	)
Uni-President China Holdings, Ltd.		(95,000	)		(76,853	)
Want Want China Holdings, Ltd.		(23,000	)		(25,229	)
Yanzhou Coal Mining Co., Ltd., Class H		(68,000	)		(67,996	)
					(2,471,790	)
Egypt
Global Telecom Holding — GDR		(18,789	)		(41,148	)
Hong Kong
Alibaba Pictures Group, Ltd.		(90,000	)		(44,270	)
AVIC International Holding HK, Ltd.		(46,000	)		(7,455	)
Beijing Enterprises Water Group Ltd.		(454,000	)		(391,548	)

See Notes to Consolidated Financial Statements.

22 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Schedule of Investments (continued)

 

	Shares			Value
Reference Entity — Short
Hong Kong (concluded)
China Agri-Industries Holdings Ltd.		(101,000	)	$	(57,676	)
China Everbright International, Ltd.		(1,000	)		(1,865	)
China Gas Holdings, Ltd.		(8,000	)		(14,135	)
China Resources Gas Group, Ltd.		(2,000	)		(6,946	)
China Resources Power Holdings Co., Ltd.		(2,000	)		(6,033	)
China Singyes Solar Technologies Holdings, Ltd.		(88,000	)		(144,111	)
GCL-Poly Energy Holdings Ltd.		(187,000	)		(56,555	)
Geely Automobile Holdings, Ltd.		(20,000	)		(11,251	)
Kunlun Energy Co., Ltd.		(22,000	)		(26,117	)
Lee & Man Paper Manufacturing, Ltd.		(15,000	)		(8,498	)
Tech Pro Technology Development, Ltd.		(16,000	)		(13,006	)
Towngas China Co., Ltd.		(19,000	)		(20,376	)
WH Group, Ltd.		(77,500	)		(54,094	)
					(863,936	)
India
Larsen & Toubro Ltd. — GDR		(523	)		(13,285	)
Indonesia
Charoen Pokphand Indonesia Tbk PT		(55,700	)		(12,146	)
Tower Bersama Infrastructure Tbk PT		(201,400	)		(131,677	)
					(143,823	)
Malaysia
Bumi Armada BHD		(110,500	)		(36,823	)
Dialog Group BHD		(27,400	)		(12,429	)
Gamuda BHD		(172,500	)		(253,171	)
Lafarge Malaysia BHD		(1,300	)		(3,523	)
Petronas Dagangan BHD		(16,400	)		(98,576	)
Sapurakencana Petroleum Bhd		(444,000	)		(330,618	)
UMW Holdings BHD		(32,600	)		(97,294	)
					(832,434	)
Malta
Brait SE		(87,394	)		(665,212	)
Mexico
Minera Frisco SAB de CV, Series A-1		(54,300	)		(45,091	)
Poland
LPP SA		(118	)		(250,760	)
Russia
MegaFon OAO — GDR		(1,325	)		(22,525	)
NovaTek OAO — GDR		(1,017	)		(98,471	)
Uralkali OJSC — GDR		(8,414	)		(123,752	)
					(244,748	)
South Africa
Aspen Pharmacare Holdings, Ltd.		(12,746	)		(387,600	)
Discovery Holdings Ltd.		(4,903	)		(54,411	)
Imperial Holdings, Ltd.		(1,369	)		(22,926	)
Nampak Ltd.		(27,994	)		(100,256	)
Remgro Ltd.		(826	)		(18,347	)
Resilient Property Income Fund, Ltd.		(23,869	)		(199,721	)
RMB Holdings, Ltd.		(3,167	)		(19,058	)
Steinhoff International Holdings, Ltd.		(3,787	)		(24,030	)
Woolworths Holdings, Ltd.		(106,690	)		(802,602	)
					(1,628,951	)
South Korea
Able C&C Co., Ltd.		(294	)		(8,679	)
Chabiotech Co., Ltd.		(1,290	)		(19,726	)
Cheil Industries, Inc.		(414	)		(60,933	)
Cosmax, Inc.		(114	)		(15,391	)

	Shares			Value
Reference Entity — Short
South Korea (concluded)
CrucialTec Co., Ltd.		(6,092	)	$	(65,940	)
Daelim Industrial Co., Ltd.		(116	)		(8,933	)
Daewoo Engineering & Construction Co., Ltd.		(5,240	)		(34,692	)
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		(13,219	)		(222,204	)
Doosan Heavy Industries & Construction Co., Ltd.		(1,237	)		(35,096	)
Eo Technics Co., Ltd.		(2,172	)		(223,654	)
GS Holdings		(325	)		(15,161	)
Hanjin Transportation Co., Ltd.		(884	)		(50,057	)
Hansol Technics Co., Ltd.		(551	)		(9,730	)
Hanwha Chemical Corp.		(745	)		(11,879	)
Hanwha Life Insurance Co., Ltd.		(5,254	)		(38,866	)
Hotel Shilla Co., Ltd.		(34	)		(3,385	)
Hyundai Glovis Co., Ltd.		(311	)		(68,220	)
Hyundai Heavy Industries Co., Ltd.		(1,154	)		(149,938	)
Interpark Corp.		(1,319	)		(10,975	)
Kolao Holdings		(12,528	)		(233,824	)
OCI Co., Ltd.		(117	)		(10,783	)
Paradise Co., Ltd.		(1,416	)		(32,851	)
S-Oil Corp.		(1,977	)		(134,701	)
Samsung Fine Chemicals Co., Ltd.		(85	)		(3,440	)
Samsung Fire & Marine Insurance Co., Ltd.		(114	)		(30,042	)
Samsung Heavy Industries Co., Ltd.		(26,590	)		(447,873	)
Samsung SDI Co., Ltd.		(1,421	)		(158,202	)
Samsung Techwin Co., Ltd.		(2,090	)		(53,681	)
					(2,158,856	)
Taiwan
Advantech Co., Ltd.		(8,000	)		(65,902	)
Epistar Corp.		(26,000	)		(40,613	)
Formosa Chemicals & Fibre Corp.		(7,000	)		(17,837	)
Hermes Microvision, Inc.		(1,000	)		(70,318	)
Hiwin Technologies Corp.		(16,480	)		(125,656	)
Hotai Motor Co., Ltd.		(25,000	)		(433,159	)
Kinsus Interconnect Technology Corp.		(2,000	)		(6,100	)
MediaTek, Inc.		(32,000	)		(411,334	)
Quanta Computer, Inc.		(15,000	)		(37,634	)
Radiant Opto-Electronics Corp.		(17,000	)		(55,902	)
ScinoPharm Taiwan, Ltd.		(2,000	)		(3,349	)
Tong Hsing Electronic Industries, Ltd.		(5,000	)		(16,018	)
Unimicron Technology Corp.		(165,000	)		(98,215	)
Winbond Electronics Corp.		(123,000	)		(40,719	)
Wistron Corp.		(125,000	)		(106,339	)
Yang Ming Marine Transport Corp.		(639,000	)		(334,516	)
					(1,863,611	)
Thailand
Charoen Pokphand Foods PCL		(79,200	)		(53,577	)
CP ALL PCL		(664,600	)		(846,753	)
Hemaraj Land and Development PCL		(123,245	)		(16,151	)
Home Product Center PCL		(187,059	)		(40,856	)
True Corp. PCL		(822,500	)		(304,398	)
					(1,261,735	)
Turkey
BIM Birlesik Magazalar		(8,960	)		(165,882	)
Emlak Konut Gayrimenkul Yatirim Ortakligi		(31,068	)		(35,887	)
Petkim Petrokimya Holding		(64,840	)		(91,117	)
Ulker Biskuvi Sanayi		(24,451	)		(186,836	)
Zorlu Enerji Elektrik Uretim		(8,719	)		(6,723	)
					(486,445	)
Total Reference Entity — Short					(15,283,012	)
Net Value of Reference Entity — UBS AG				$	16,715,866

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 23

Schedule of Investments (concluded)

• 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 Consolidated Financial Statements.

As of April 30, 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:
Corporate Bonds		—	$	5,305,672		—	$	5,305,672
Foreign Agency Obligations		—		3,212,532		—		3,212,532
Foreign Government Obligations		—		24,403,435		—		24,403,435
Investment Companies	$	3,252,456		—		—		3,252,456
Short-Term Securities		30,478,690		—		—		30,478,690
Total	$	33,731,146	$	32,921,639		—	$	66,652,785

	Level 1			Level 2			Level 3		Total
Derivative Financial Instruments1
Assets:
Equity Contracts		—		$	4,478,653			—	$	4,478,653
Interest Rate Contracts		—			63,426			—		63,426
Liabilities:
Equity Contracts	$	(44,035	)		—			—		(44,035	)
Foreign Currency Exchange Contracts		—			(28,766	)		—		(28,766	)
Total	$	(44,035	)	$	4,513,313			—	$	4,469,278

¹ Derivative financial instruments are swaps, financial futures contracts and foreign currency exchange contracts which are valued at the unrealized appreciation (depreciation) of the investment.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of April 30, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

	Level 1		Level 2			Level 3		Total
Assets:
Cash	$	116,286		—			—	$	116,286
Cash pledged for financial futures contracts		101,000		—			—		101,000
Foreign currency at value		4,121		—			—		4,121
Liabilities:
Cash received as collateral for OTC derivatives		—	$	(8,129,792	)		—		(8,129,792	)
Total	$	221,407	$	(8,129,792	)		—	$	(7,908,385	)

During the six months ended April 30, 2015, there were no transfers between levels.

See Notes to Consolidated Financial Statements.

24 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Statement of Assets and Liabilities 

April 30, 2015 (Unaudited)
Assets
Investments at value — unaffiliated (cost — $32,796,605)	$	32,921,639
Investments at value — affiliated (cost — $33,749,672)		33,731,146
Unrealized appreciation on OTC swaps		4,542,079
Cash		116,286
Cash pledged for financial futures contracts		101,000
Investments sold receivable		349,938
Interest receivable		348,387
Capital shares sold receivable		10,283
Dividends receivable		7,646
Foreign currency at value (cost — $3,994)		4,121
Prepaid expenses		32,537
Total assets		72,165,062
Liabilities
Cash received as collateral for OTC derivatives		8,192,792
Investments purchased payable		1,919,358
Capital shares redeemed payable		91,952
Investment advisory fees payable		36,067
Unrealized depreciation on forward foreign currency exchange contracts		28,766
Variation margin payable on financial futures contracts		8,056
Administration fees payable		2,094
Service and distribution fees payable		1,501
Other accrued expenses payable		125,197
Total liabilities		10,405,783
Net Assets	$	61,759,279
Net Assets Consist of
Paid-in capital	$	59,485,782
Undistributed net investment income		137,265
Accumulated net realized loss		(2,272,068	)
Net unrealized appreciation (depreciation)		4,408,300
Net Assets	$	61,759,279
Net Asset Value
Institutional — Based on net assets of $58,635,620 and 5,793,585 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	10.12
Investor A — Based on net assets of $1,589,857 and 157,547 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	10.09
Investor C — Based on net assets of $1,533,802 and 152,954 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	10.03

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 25

Consolidated Statement of Operations 

Six Months Ended April 30, 2015 (Unaudited)
Investment Income
Interest	$	535,890
Dividends — affiliated		73,350
Total income		609,240
Expenses
Investment advisory		273,520
Professional		64,307
Administration		14,524
Administration — Institutional		5,597
Administration — Investor A		102
Administration — Investor C		217
Service — Investor A		1,207
Service and distribution — Investor C		9,871
Transfer agent — Institutional		1,097
Transfer agent — Investor A		733
Transfer agent — Investor C		1,812
Registration		26,728
Accounting Services		24,687
Printing		16,377
Custodian		3,829
Officer and Trustees		2,346
Miscellaneous		35,121
Total expenses		482,075
Less fees waived by the Manager		(78,185	)
Less administration fees waived — Institutional		(5,597	)
Less administration fees waived — Investor A		(102	)
Less administration fees waived — Investor C		(215	)
Less transfer agent fees waived and/or reimbursed — Institutional		(1,097	)
Less transfer agent fees waived and/or reimbursed — Investor A		(727	)
Less transfer agent fees waived and/or reimbursed — Investor C		(1,810	)
Total expenses after fees waived and/or reimbursed		394,342
Net investment income		214,898
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated		(158,965	)
Capital gain distributions received from affiliated investment companies		37,390
Financial futures contracts		(21,624	)
Foreign currency transactions		(55,188	)
Swaps		(851,026	)
		(1,049,413	)
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		415,676
Investments — affiliated		(54,052	)
Financial futures contracts		(119,406	)
Foreign currency translations		(196,142	)
Swaps		2,903,909
		2,949,985
Total realized and unrealized gain		1,900,572
Net Increase in Net Assets Resulting from Operations	$	2,115,470

See Notes to Consolidated Financial Statements.

26 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Statement of Changes in Net Assets 

Increase (Decrease) in Net Assets:	Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014
Operations
Net investment income	$	214,898		$	267,273
Net realized gain (loss)		(1,049,413	)		593,910
Net change in unrealized appreciation (depreciation)		2,949,985			1,298,991
Net increase in net assets resulting from operations		2,115,470			2,160,174
Distributions to Shareholders From1
Net investment income:
Institutional		(336,028	)		(418,234	)
Investor A		(3,973	)		(1,158	)
Investor C		—			(613	)
Decrease in net assets resulting from distributions to shareholders		(340,001	)		(420,005	)
Capital Share Transactions
Net increase in net assets derived from capital share transactions		5,324,830			4,244,374
Net Assets
Total increase in net assets		7,100,299			5,984,543
Beginning of period		54,658,980			48,674,437
End of period	$	61,759,279		$	54,658,980
Undistributed net investment income, end of period	$	137,265		$	262,368

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

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 27

Consolidated Financial Highlights 

	Institutional
	Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014			Period May 16, 20131 to October 31, 2013
Per Share Operating Performance
Net asset value, beginning of period	$	9.84		$	9.53		$	10.00
Net investment income2		0.04			0.05			0.05
Net realized and unrealized gain (loss)		0.30			0.34			(0.52	)
Net increase (decrease) from investment operations		0.34			0.39			(0.47	)
Distributions from net investment income3		(0.06	)		(0.08	)		—
Net asset value, end of period	$	10.12		$	9.84		$	9.53
Total Return4
Based on net asset value		3.57%	5		4.18%			(4.70)%	5
Ratios to Average Net Assets6
Total expenses		1.71%	7		2.01%			1.92%	7,8
Total expenses after fees waived and/or reimbursed		1.40%	7		1.40%			1.40%	7
Net investment income		0.83%	7		0.56%			1.08%	7
Supplemental Data
Net assets, end of period (000)	$	58,636		$	51,671		$	48,532
Portfolio turnover rate9		28%			37%			12%

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 0.13% for the six months ended April 30, 2015 and 0.12% for the year ended October 31, 2014 and period ended October 31, 2013.

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 1.97%.

⁹ Excludes investments underlying the total return swaps.

See Notes to Consolidated Financial Statements.

28 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Consolidated Financial Highlights (continued) 

	Investor A
	Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014			Period May 16, 20131 to October 31, 2013
Per Share Operating Performance
Net asset value, beginning of period	$	9.81		$	9.52		$	10.00
Net investment income2		0.04			0.02			0.04
Net realized and unrealized gain (loss)		0.29			0.35			(0.52	)
Net increase (decrease) from investment operations		0.33			0.37			(0.48	)
Distributions from net investment income3		(0.05	)		(0.08	)		—
Net asset value, end of period	$	10.09		$	9.81		$	9.52
Total Return4
Based on net asset value		3.41%	5		3.90%			(4.80)%	5
Ratios to Average Net Assets6
Total expenses		2.11%	7		2.54%			2.63%	7,8
Total expenses after fees waived and/or reimbursed		1.65%	7		1.65%			1.65%	7
Net investment income		0.85%	7		0.23%			0.82%	7
Supplemental Data
Net assets, end of period (000)	$	1,590		$	698		$	71
Portfolio turnover rate9		28%			37%			12%

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 0.13% for the six months ended April 30, 2015 and 0.12% for the year ended October 31, 2014 and period ended October 31, 2013.

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 2.66%.

⁹ Excludes investments underlying the total return swaps.

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 29

Consolidated Financial Highlights (concluded) 

	Investor C
	Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014			Period May 16, 20131 to October 31, 2013
Per Share Operating Performance
Net asset value, beginning of period	$	9.73		$	9.49		$	10.00
Net investment income (loss)2		(0.02	)		(0.05	)		0.00	3
Net realized and unrealized gain (loss)		0.32			0.34			(0.51	)
Net increase (decrease) from investment operations		0.30			0.29			(0.51	)
Distributions from net investment income4		—			(0.05	)		—
Net asset value, end of period	$	10.03		$	9.73		$	9.49
Total Return5
Based on net asset value		3.08%	6		3.14%			(5.10)%	6
Ratios to Average Net Assets7
Total expenses		2.89%	8		3.25%			3.43%	8,9
Total expenses after fees waived and/or reimbursed		2.40%	8		2.40%			2.40%	8
Net investment income (loss)		(0.42)%	8		(0.57)%			0.06%	8
Supplemental Data
Net assets, end of period (000)	$	1,534		$	2,290		$	71
Portfolio turnover rate10		28%			37%			12%

¹ Commencement of operations.

² Based on average shares outstanding.

³ Amount is less than $0.005 per share.

⁴ Distributions for annual periods are determined in accordance with federal income tax regulations.

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 0.13% for the six months ended April 30, 2015 and 0.12% for the year ended October 31, 2014 and period ended October 31, 2013.

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 3.47%.

¹⁰ Excludes investments underlying the total return swaps.

See Notes to Consolidated Financial Statements.

30 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Notes to Consolidated 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. BlackRock Emerging Market Allocation Portfolio (the “Fund”) is a series of the Trust. The Fund is classified as non-diversified.

The Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional 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	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.

Basis of Consolidation: The accompanying consolidated financial statements of the Fund include the accounts of BlackRock Cayman Emerging Market Allocation Fund, Ltd. (the “Subsidiary”), which is a wholly owned subsidiary of the Fund and primarily invests in commodity-related instruments. The Subsidiary enables the Fund to hold these commodity-related instruments and satisfy regulated investment company tax requirements. The Fund may invest up to 25% of its total assets in the Subsidiary. Intercompany accounts and transactions, if any, have been eliminated. During the six months ended April 30, 2015, there were no transactions in the Subsidiary. The Subsidiary is subject to the same investment policies and restrictions that apply to the Fund, except that the Subsidiary may invest without limitation in commodity-related instruments.

2. Significant Accounting Policies:

The Fund’s consolidated 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 consolidated 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. The 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 Fund:

Valuation: The Fund’s 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 Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments at market value using independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (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 Fund for all financial instruments.

Bond investments are valued on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche. Financial futures contracts traded on exchanges are valued at their last sale price. Swap agreements are valued utilizing quotes received daily by the Fund’s 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. Investments in open-end registered investment companies are valued at NAV each business day.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 31

Notes to Consolidated Financial Statements (continued)

Equity investments traded on a recognized securities exchange are valued at the official close price 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.

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 the 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. 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 Fund’s 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 will 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 Fund uses 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: The 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.

The 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 Consolidated Statement 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. The 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., financial futures contracts and swaps) that would be “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records 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 are 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.

32 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Notes to Consolidated Financial Statements (continued)

Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes. Accordingly, the net investment income (loss) and realized gains (losses) reported in the Fund’s consolidated financial statements presented under U.S. GAAP for such investments held by the Subsidiary may differ significantly from distributions. As such, any net gain will pass through to the Fund as ordinary income for federal income tax purposes. If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s ordinary income and/or capital gains for that year.

Other: Expenses directly related to the Fund or its classes are charged to the 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 Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

The Fund has an arrangement with its custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Consolidated Statement 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.

3. Derivative Financial Instruments:

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to economically manage its exposure to certain risks such as equity risk and interest rate risk. These contracts may be transacted on an exchange or OTC.

Financial Futures Contracts: The Fund invests 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 Fund 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 Fund is 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 Consolidated Schedule of Investments and cash deposited, if any, is recorded on the Consolidated Statement of Assets and Liabilities as cash pledged for financial futures contracts. Pursuant to the contract, the Fund agrees 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 Fund as unrealized appreciation (depreciation) and, if applicable, as a receivable or payable for variation margin in the Consolidated Statement of Assets and Liabilities.

When the contract is closed, the Fund records 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 Fund enters 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 Fund, help to manage the overall exposure to the currencies in which some of the investments held by the Fund are denominated. The contract is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss. When the contract is closed, the Fund records 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 Fund enters into swap agreements in which the Fund 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).

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 33

Notes to Consolidated Financial Statements (continued)

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 Consolidated Statement of Assets and Liabilities and amortized over the term of the OTC swap. Payments received or made by the Fund for OTC swaps are recorded in the Consolidated Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, the Fund will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s 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 notated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the Consolidated Schedule of Investments and cash deposited is recorded on the Consolidated Statement 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 Consolidated Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gain (loss) in the Consolidated Statement of Operations.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Consolidated Statement 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.

•   Total return swaps — The Fund enters 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 Fund will pay an amount equal to any depreciation on a long position and appreciation on a short position including dividends from such positions. Conversely, the Fund will receive any appreciation on a long position and any depreciation on a short position including dividends from such positions. In addition, the Fund 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 each individual underlying position. The unrealized appreciation (depreciation) on total return swaps includes dividends on the underlying basket of equity securities and financing fees. The agreement allows BlackRock Advisors, LLC (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 Consolidated Statement of Operations. Certain swaps have no stated expiration and can be terminated by either party at any time.

•   Interest rate swaps — The Fund enters into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds, which may decrease when interest rates rise (interest rate risk). Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In more complex swaps, the notional principal amount may decline (or amortize) over time.

34 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Notes to Consolidated Financial Statements (continued)

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

Fair Values of Derivative Financial Instruments as of April 30, 2015
		Value
	Consolidated Statement of Assets and Liabilities Location	Derivative Assets		Derivative Liabilities
Equity contracts	Net unrealized appreciation on OTC swaps; Net unrealized depreciation on financial futures contracts1	$	4,478,653	$	(44,035	)
Foreign currency exchange contracts	Net unrealized depreciation on forward foreign currency exchange contracts		—	$	(28,766	)
Interest rate contracts	Net unrealized appreciation on OTC swaps	$	63,426		—

¹ Includes cumulative appreciation (depreciation) on financial futures contracts as reported in the Consolidated Schedule of Investments. Only current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities.

The Effect of Derivative Financial Instruments in the Consolidated Statement of Operations Six Months Ended April 30, 2015
	Net Realized Loss from			Net Change in Unrealized Appreciation (Depreciation) on
Equity contracts:
Financial futures contracts	$	(21,624	)	$	(119,406	)
Swaps		(851,026	)		2,840,483
Foreign currency exchange contracts:
Forward foreign currency exchange contracts		—			(28,766	)
Interest rate contracts:
Swaps		—			63,426
Total	$	(872,650	)	$	2,755,737

For the six months ended April 30, 2015, the average quarterly balances of outstanding derivative financial instruments were as follows:

Financial futures contracts:
Average notional value of contracts purchased	$	2,506,927
Foreign currency exchange contracts:
Average USD amounts sold	$	1,286,224
Interest rate swaps:
Average notional amount-receives fixed rate	$	2,844,425
Total return swaps:
Average notional amount	$	31,516,569

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 Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by the Fund.

With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Fund 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, the 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 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 Fund.

In order to better define its contractual rights and to secure rights that will help the Fund mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between the 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

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 35

Notes to Consolidated Financial Statements (continued)

Agreement, the 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 Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements. The result would cause the Fund 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 Fund and the counterparty.

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately on the Consolidated Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Consolidated Schedule 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 Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the Fund and counterparties are not permitted to sell, re-pledge or use the collateral they receive. To the extent amounts due to the Fund from its counterparties are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, the Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Consolidated Statement of Assets and Liabilities.

As of April 30, 2015, the Fund’s derivative assets and liabilities (by type) are as follows:

	Assets		Liabilities
Derivative Financial Instruments:
Financial futures contracts		—	$	8,056
Forward foreign currency exchange contracts		—		28,766
Swaps — OTC1	$	4,542,079		—
Total derivative assets and liabilities in the Consolidated Statement of Assets and Liabilities		4,542,079		36,822
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		—		(8,056	)
Total derivative assets subject to an MNA	$	4,542,079	$	28,766

¹ Includes unrealized appreciation (depreciation) on OTC swap and swap premiums paid/received in the Consolidated Statement of Assets and Liabilities.

As of April 30, 2015, the following table presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received by the Fund:

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset		Non-cash Collateral Received		Cash Collateral Received2			Net Amount of Derivative Assets3
Bank of America N.A	$	63,426		—		—		—		$	63,426
Goldman Sachs & Co		2,506,648		—		—	$	(2,400,000	)		106,648
UBS AG		1,972,005		—		—		(1,972,005	)		—
Total	$	4,542,079		—		—	$	(4,372,005	)	$	170,074

 

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset		Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities4
Standard Chartered Bank	$	28,766		—		—		—	$	28,766

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.

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

36 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Notes to Consolidated Financial Statements (continued)

4. Investment Advisory Agreement and Other Transactions with Affiliates:

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

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

Average Daily Net Assets	Investment Advisory Fee
First $1 Billion		1.00	%
$1 Billion - $3 Billion		0.94	%
$3 Billion - $5 Billion		0.90	%
$5 Billion - $10 Billion		0.87	%
Greater than $10 Billion		0.85	%

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds. The Manager has contractually agreed to waive its advisory fees on assets estimated to be attributed to investments in other equity and fixed income mutual funds managed by the Manager or its affiliates, if any. For the six months ended April 30, 2015, the Fund waived $22,082, which is included in fees waived by Manager in the Consolidated Statement of Operations.

The Manager, with respect to the Fund, entered into separate sub-advisory agreements with BlackRock International Limited, BlackRock Asset Management North Asia Limited and BlackRock (Singapore) Limited (collectively, the “Sub-Advisors”), each an affiliate of the Manager. The Manager pays the Sub-Advisors for services they provide a monthly fee that is a percentage of the investment advisory fees paid by the Fund to the Manager.

The Trust, on behalf of the Fund, entered into a Distribution Agreement and 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 shares of the 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.

Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund 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.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 37

Notes to Consolidated Financial Statements (continued)

Effective January 1, 2015, the Trust, on behalf of the Fund, 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 Fund. The administration fee, which is shown as administration in the Consolidated Statement of Operations, is paid at the annual rates below.

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%

In addition, the Manager charges each of the share classes an administration fee, which is shown as administration — class specific in the Consolidated Statement of Operations, at an annual rate of 0.02% of the average daily net assets of each respective class.

Prior to January 1, 2015, State Street Bank and Trust Company and the Manager acted as co-administrators for the Fund. 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 the Fund. The combined administration fee, which is shown as administration in the Consolidated Statement 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 Consolidated Statement 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%

In addition, the administrators may have, at their discretion, voluntarily waived all or any portion of their administration fees for the Fund or a share class which are included in administration fees waived — class specific in the Consolidated Statement of Operations.

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 Fund’s business. The current expense limitations as a percentage of average daily net assets are as follows:

	Expense Limitation
Institutional	1.40%
Investor A	1.65%
Investor C	2.40%

The Manager has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to March 1, 2016 unless approved by the Board, including a majority of the independent Trustees or by a vote of the majority of the outstanding voting securities of the Fund.

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

If during the Fund’s 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

38 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Notes to Consolidated Financial Statements (continued)

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.

On April 30, 2015, the Fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring October 31,
	2016		2017
Fund level	$	276,538	$	56,103
Institutional	$	13,572	$	6,693
Investor A	$	873	$	829
Investor C	$	2,361	$	2,025

The following Fund level and class specific waivers and/or reimbursements previously recorded by the Fund which were subject to recoupment by the Manager expired on October 31, 2014:

Fund level	$	88,195
Institutional	$	5,354
Investor A	$	103
Investor C	$	92

For the six months ended April 30, 2015, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares, which totaled $1,119.

For the six months ended April 30, 2015, affiliates received CDSCs of $1,112 for the Fund’s Investor C Shares.

Certain officers and/or trustees of the Trust are officers and/or directors of BlackRock or its affiliates. The Fund reimburses 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 Consolidated Statement of Operations.

5. Purchases and Sales:

For the six months ended April 30, 2015, purchases and sales of investments, excluding short-term securities, were $15,255,996 and $8,639,607, respectively.

6. Income Tax Information:

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

The 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 the Fund’s U.S. federal tax returns remains open for the year ended October 31, 2014 and the period ended October 31, 2013. The statutes of limitations on the 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 Fund as of April 30, 2015, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of October 31, 2014, the Fund had a capital loss carryforward of $504,509, with no expiration dates, available to offset future realized capital gains.

As of April 30, 2015 gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	67,248,150
Gross unrealized appreciation	$	643,728
Gross unrealized depreciation		(1,239,093	)
Net unrealized depreciation	$	(595,365	)

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 39

Notes to Consolidated Financial Statements (continued)

7. Bank Borrowings:

The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.1 billion credit agreement with a group of lenders, under which the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.6 billion, subject to asset coverage and other limitations as specified in the agreement. 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) 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. The agreement expires in April 2016 unless extended or renewed. Prior to November 25, 2014, the aggregate commitment amount was $1.1 billion, of which the Participating Funds, including the Fund, could borrow up to $650 million at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. Participating Funds paid administration, legal and arrangement fees, which are included in miscellaneous expenses in the Consolidated 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 April 30, 2015, the Fund did not borrow under the credit agreement.

8. Principal Risks:

In the normal course of business, the Fund invests in securities and enters 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 Fund may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Fund; 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 Fund may be exposed to counterparty credit risk, or the risk that an entity with which the Fund has unsettled or open transactions may fail to or be unable to perform on its commitments. The Fund manages counterparty credit risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Consolidated Statement of Assets and Liabilities, less any collateral held by the Fund.

As of April 30, 2015, the Fund had the following industry classifications:

	Percent of Total Investments1
Industry	Long			Short			Total
Metals & Mining		5	%		2	%		7	%
Capital Goods		4			3			7
Food, Beverage & Tobacco		3			3			6
Technology Hardware & Equipment		5			1			6
Banks		4			1			5
Semiconductors & Semiconductor Equipment		4			1			5
Telecommunication Services		2			2			4
Real Estate Management & Development		2			2			4
Energy		3			—			3
Transportation		3			—			3
Software & Services		2			1			3
Utilities		2			1			3
Food & Staples Retailing		2			1			3
Retailing		1			1			2
Oil, Gas & Consumable Fuels		1			1			2
Other		32	1		5	2		37
Total		75	%		25	%		100	%

¹ Consists of Foreign Government Obligations (17%) and Investment Companies (2%) with the remainder consisting of other industries that were each 1% or less of total investments (13%).

² All other industries held were each 1% or less of total investments.

40 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Notes to Consolidated Financial Statements (concluded)

9. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Six months Ended April 30, 2015						Year Ended October 31, 2014
	Shares			Amount			Shares			Amount
Institutional
Shares sold		612,636		$	5,959,565			203,220		$	1,975,469
Shares issued in reinvestment of distributions		899			8,237			235			2,148
Shares redeemed		(71,135	)		(690,465	)		(45,465	)		(441,872	)
Net increase		542,400		$	5,277,337			157,990		$	1,535,745
Investor A
Shares sold		117,764		$	1,135,990			133,990		$	1,250,374
Shares issued in reinvestment of distributions		421			3,850			106			969
Shares redeemed		(31,854	)		(304,529	)		(70,299	)		(648,259	)
Net increase		86,331		$	835,311			63,797		$	603,084
Investor C
Shares sold		28,055		$	273,324			228,616		$	2,113,145
Shares issued in reinvestment of distributions		—			—			52			473
Shares redeemed		(110,442	)		(1,061,142	)		(859	)		(8,073	)
Net increase (decrease)		(82,387	)	$	(787,818	)		227,809		$	2,105,545
Total Net Increase		546,344		$	5,324,830			449,596		$	4,244,374

At April 30, 2015, the following shares of the Fund were owned by affiliates:

Institutional	5,091,436
Investor A	2,500
Investor C	2,500

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 EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 41

Officers and Trustees

Rodney D. Johnson, Chair 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, Vice President

Jennifer McGovern, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Charles Park, Chief Compliance Officer

Fernanda Piedra, Anti-Money Laundering Compliance Officer

Benjamin Archibald, Secretary

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.
 
Effective May 18, 2015, Ian A. MacKinnon resigned as a Trustee of the Trust.

 

Investment Advisor and
Administrator
BlackRock Advisors, LLC
Wilmington, DE 19809
 
Accounting Agent and Custodian
State Street Bank and Trust Company
Boston, MA 02110 Sub-Advisors
BlackRock International Limited
Edinburgh, EH3 8BL
United Kingdom

BlackRock Asset Management
North Asia Limited
Hong Kong, China

BlackRock (Singapore) Limited
079912 Singapore Transfer Agent
BNY Mellon Investment
Servicing (US) Inc.
Wilmington, DE 19809

Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116 Distributor
BlackRock Investments, LLC
New York, NY 10022

Legal Counsel
Sidley Austin LLP
New York, NY 10019

Address of the Fund
100 Bellevue Parkway
Wilmington, DE 19809

42 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

Additional Information

General Information

Householding

The Fund 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 Fund at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s 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 Fund’s 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 Fund uses 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 Fund voted proxies relating to securities held in the 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 http://www.blackrock.com for more information.

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.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015 43

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.

44 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2015

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The report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless preceded or accompanied by the 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.

EMAP-4/15-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: July 1, 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: July 1, 2015

By: /s/ Neal J. Andrews

Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock Funds

Date: July 1, 2015

3