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 FundsSM
BlackRock China A Opportunities Fund
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock FundsSM, 50 Hudson Yards, New York, NY 10001
Registrant’s telephone number, including area code: (800) 441-7762
Date of fiscal year end: 10/31/2024
Date of reporting period: 10/31/2024
Item 1 – Report to Stockholders
(a) The Report to Shareholders is attached herewith.
BlackRock China A Opportunities Fund
Institutional Shares | CHILX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock China A Opportunities Fund (the “Fund”) for the period of November 1, 2023 to October 31, 2024.You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 537-4942.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
---|
Institutional Shares | $108 | 1.00% |
How did the Fund perform last year?
For the reporting period ended October 31, 2024, the Fund’s Instititional Shares returned 16.43%.
For the same period, the MSCI China A Onshore Index returned 14.15%.
What contributed to performance?
Positive contributions were led by fundamental stock selection measures, most notably fundamental valuation insights as markets exhibited a preference for value factor styles. In this vein, traditional valuation metrics comparing stock prices across company earnings, sales and cash flows contributed in the first half of 2024, as risk sentiment remained weak and investors focused on companies with strong cash flows. Defensive quality fundamental measures also contributed to gains amid market volatility, with measures evaluating operating efficiency and dividend consistency proving additive. Sentiment measures added to return as well, successfully positioning the portfolio around evolving market themes. These included measures capturing forward-looking views of company fundamentals based on comments from sell-side analysts as well as insights capturing informed investor positioning, which were effective during the January and April 2024 earnings seasons. Additionally, measures of consumer sentiment and intent based on credit card transactions helped motivate successful positioning with respect to consumer discretionary stocks.
What detracted from performance?
While sentiment insights contributed in aggregate, select trend-based sentiment signals struggled against deteriorating investor confidence throughout the period as well during a drawdown in momentum styles at period-end. Specifically, measures capturing trends across broker reports from Chinese sell-side analysts struggled. In addition, macro thematic insights evaluating industry trends drove unsuccessful positioning. Most notably, measures evaluating hiring trends motivated an underweight to financials which detracted as investors favored defensive brokerage stocks amid broader market volatility.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Cumulative performance: December 27, 2018 through October 31, 2024
Initial Investment of $10,000
| Institutional Shares | MSCI China A Onshore Index |
---|
Dec 18 | $10,090 | $10,066 |
Jan 19 | $10,930 | $10,938 |
Feb 19 | $12,340 | $12,617 |
Mar 19 | $13,310 | $13,390 |
Apr 19 | $13,550 | $13,420 |
May 19 | $12,410 | $12,221 |
Jun 19 | $13,290 | $12,913 |
Jul 19 | $13,240 | $12,977 |
Aug 19 | $12,930 | $12,455 |
Sep 19 | $13,140 | $12,542 |
Oct 19 | $13,440 | $12,898 |
Nov 19 | $13,390 | $12,771 |
Dec 19 | $14,567 | $13,840 |
Jan 20 | $13,229 | $13,800 |
Feb 20 | $14,318 | $13,613 |
Mar 20 | $13,059 | $12,494 |
Apr 20 | $14,023 | $13,392 |
May 20 | $14,238 | $13,172 |
Jun 20 | $15,780 | $14,488 |
Jul 20 | $17,923 | $16,635 |
Aug 20 | $18,875 | $17,322 |
Sep 20 | $18,467 | $16,490 |
Oct 20 | $19,022 | $17,071 |
Nov 20 | $19,884 | $18,238 |
Dec 20 | $21,657 | $19,381 |
Jan 21 | $22,504 | $20,093 |
Feb 21 | $22,092 | $19,941 |
Mar 21 | $20,985 | $18,698 |
Apr 21 | $21,774 | $19,453 |
May 21 | $22,822 | $20,683 |
Jun 21 | $22,787 | $20,312 |
Jul 21 | $21,727 | $19,276 |
Aug 21 | $21,645 | $19,487 |
Sep 21 | $21,527 | $19,495 |
Oct 21 | $21,986 | $19,914 |
Nov 21 | $22,092 | $20,012 |
Dec 21 | $22,422 | $20,162 |
Jan 22 | $20,671 | $18,384 |
Feb 22 | $20,909 | $18,889 |
Mar 22 | $19,241 | $17,200 |
Apr 22 | $17,109 | $15,437 |
May 22 | $17,800 | $15,872 |
Jun 22 | $19,372 | $17,467 |
Jul 22 | $18,098 | $16,402 |
Aug 22 | $17,264 | $15,649 |
Sep 22 | $15,464 | $14,143 |
Oct 22 | $14,178 | $12,988 |
Nov 22 | $16,120 | $14,412 |
Dec 22 | $16,023 | $14,671 |
Jan 23 | $17,682 | $16,196 |
Feb 23 | $16,937 | $15,549 |
Mar 23 | $17,081 | $15,562 |
Apr 23 | $17,045 | $15,239 |
May 23 | $15,662 | $14,121 |
Jun 23 | $15,674 | $14,024 |
Jul 23 | $16,540 | $14,819 |
Aug 23 | $15,158 | $13,624 |
Sep 23 | $14,953 | $13,376 |
Oct 23 | $14,136 | $12,974 |
Nov 23 | $14,208 | $13,126 |
Dec 23 | $14,054 | $12,962 |
Jan 24 | $13,085 | $11,647 |
Feb 24 | $14,483 | $12,904 |
Mar 24 | $14,336 | $12,874 |
Apr 24 | $15,023 | $13,140 |
May 24 | $14,949 | $13,013 |
Jun 24 | $14,520 | $12,539 |
Jul 24 | $14,348 | $12,619 |
Aug 24 | $14,128 | $12,377 |
Sep 24 | $17,243 | $15,232 |
Oct 24 | $16,458 | $14,810 |
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
Average Annual Total Returns | 1 Year | 5 Years | Since Fund Inception |
---|
Institutional Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 16.43% | 4.13% | 8.90% |
MSCI China A Onshore Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 14.15 | 2.80 | 6.95 |
Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $17,147,021 |
Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 159 |
Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $0 |
Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 149% |
The Fund commenced operations on December 27, 2018.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
SectorFootnote Reference(a) | Percent of Net Assets |
---|
Information Technology........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 22.4% |
Financials........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 17.8 |
Industrials........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 14.6 |
Materials........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 10.9 |
Consumer Discretionary........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 9.9 |
Consumer Staples........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 9.5 |
Health Care........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 8.7 |
Communication Services........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.1 |
Energy........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 1.8 |
Utilities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 1.8 |
Real Estate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 0.3 |
Short-Term Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 1.3 |
Liabilities in Excess of Other Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | (1.1) |
|
SecurityFootnote Reference(b) | Percent of Net Assets |
---|
Contemporary Amperex Technology Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 4.0% |
Ping An Insurance Group Co. of China Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 3.9 |
Kweichow Moutai Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 3.9 |
China Merchants Bank Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 3.2 |
Wuliangye Yibin Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 3.2 |
BOE Technology Group Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.5 |
Huatai Securities Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.3 |
BYD Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.3 |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.3 |
Midea Group Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.0 |
| |
Footnote | Description |
Footnote(a) | For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes. |
Footnote(b) | Excludes short-term securities. |
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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) 537-4942.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
© 2024 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
BlackRock China A Opportunities Fund
Institutional Shares | CHILX
Annual Shareholder Report — October 31, 2024
BlackRock China A Opportunities Fund
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock China A Opportunities Fund (the “Fund”) for the period of November 1, 2023 to October 31, 2024.You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 537-4942.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
---|
Class K Shares | $103 | 0.95% |
How did the Fund perform last year?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 16.51%.
For the same period, the MSCI China A Onshore Index returned 14.15%.
What contributed to performance?
Positive contributions were led by fundamental stock selection measures, most notably fundamental valuation insights as markets exhibited a preference for value factor styles. In this vein, traditional valuation metrics comparing stock prices across company earnings, sales and cash flows contributed in the first half of 2024, as risk sentiment remained weak and investors focused on companies with strong cash flows. Defensive quality fundamental measures also contributed to gains amid market volatility, with measures evaluating operating efficiency and dividend consistency proving additive. Sentiment measures added to return as well, successfully positioning the portfolio around evolving market themes. These included measures capturing forward-looking views of company fundamentals based on comments from sell-side analysts as well as insights capturing informed investor positioning, which were effective during the January and April 2024 earnings seasons. Additionally, measures of consumer sentiment and intent based on credit card transactions helped motivate successful positioning with respect to consumer discretionary stocks.
What detracted from performance?
While sentiment insights contributed in aggregate, select trend-based sentiment signals struggled against deteriorating investor confidence throughout the period as well during a drawdown in momentum styles at period-end. Specifically, measures capturing trends across broker reports from Chinese sell-side analysts struggled. In addition, macro thematic insights evaluating industry trends drove unsuccessful positioning. Most notably, measures evaluating hiring trends motivated an underweight to financials which detracted as investors favored defensive brokerage stocks amid broader market volatility.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Cumulative performance: December 27, 2018 through October 31, 2024
Initial Investment of $10,000
| Class K Shares | MSCI China A Onshore Index |
---|
Dec 18 | $10,090 | $10,066 |
Jan 19 | $10,930 | $10,938 |
Feb 19 | $12,340 | $12,617 |
Mar 19 | $13,310 | $13,390 |
Apr 19 | $13,550 | $13,420 |
May 19 | $12,410 | $12,221 |
Jun 19 | $13,300 | $12,913 |
Jul 19 | $13,240 | $12,977 |
Aug 19 | $12,930 | $12,455 |
Sep 19 | $13,140 | $12,542 |
Oct 19 | $13,450 | $12,898 |
Nov 19 | $13,390 | $12,771 |
Dec 19 | $14,569 | $13,840 |
Jan 20 | $13,243 | $13,800 |
Feb 20 | $14,320 | $13,613 |
Mar 20 | $13,061 | $12,494 |
Apr 20 | $14,025 | $13,392 |
May 20 | $14,241 | $13,172 |
Jun 20 | $15,794 | $14,488 |
Jul 20 | $17,937 | $16,635 |
Aug 20 | $18,889 | $17,322 |
Sep 20 | $18,470 | $16,490 |
Oct 20 | $19,025 | $17,071 |
Nov 20 | $19,887 | $18,238 |
Dec 20 | $21,652 | $19,381 |
Jan 21 | $22,500 | $20,093 |
Feb 21 | $22,100 | $19,941 |
Mar 21 | $20,992 | $18,698 |
Apr 21 | $21,782 | $19,453 |
May 21 | $22,830 | $20,683 |
Jun 21 | $22,795 | $20,312 |
Jul 21 | $21,735 | $19,276 |
Aug 21 | $21,652 | $19,487 |
Sep 21 | $21,534 | $19,495 |
Oct 21 | $22,006 | $19,914 |
Nov 21 | $22,100 | $20,012 |
Dec 21 | $22,449 | $20,162 |
Jan 22 | $20,685 | $18,384 |
Feb 22 | $20,923 | $18,889 |
Mar 22 | $19,266 | $17,200 |
Apr 22 | $17,120 | $15,437 |
May 22 | $17,824 | $15,872 |
Jun 22 | $19,397 | $17,467 |
Jul 22 | $18,122 | $16,402 |
Aug 22 | $17,287 | $15,649 |
Sep 22 | $15,487 | $14,143 |
Oct 22 | $14,187 | $12,988 |
Nov 22 | $16,131 | $14,412 |
Dec 22 | $16,053 | $14,671 |
Jan 23 | $17,714 | $16,196 |
Feb 23 | $16,968 | $15,549 |
Mar 23 | $17,100 | $15,562 |
Apr 23 | $17,076 | $15,239 |
May 23 | $15,680 | $14,121 |
Jun 23 | $15,704 | $14,024 |
Jul 23 | $16,570 | $14,819 |
Aug 23 | $15,187 | $13,624 |
Sep 23 | $14,982 | $13,376 |
Oct 23 | $14,164 | $12,974 |
Nov 23 | $14,236 | $13,126 |
Dec 23 | $14,082 | $12,962 |
Jan 24 | $13,111 | $11,647 |
Feb 24 | $14,512 | $12,904 |
Mar 24 | $14,365 | $12,874 |
Apr 24 | $15,053 | $13,140 |
May 24 | $14,979 | $13,013 |
Jun 24 | $14,549 | $12,539 |
Jul 24 | $14,377 | $12,619 |
Aug 24 | $14,156 | $12,377 |
Sep 24 | $17,277 | $15,232 |
Oct 24 | $16,503 | $14,810 |
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
Average Annual Total Returns | 1 Year | 5 Years | Since Fund Inception |
---|
Class K Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 16.51% | 4.18% | 8.95% |
MSCI China A Onshore Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 14.15 | 2.80 | 6.95 |
Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $17,147,021 |
Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 159 |
Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $0 |
Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 149% |
The Fund commenced operations on December 27, 2018.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
SectorFootnote Reference(a) | Percent of Net Assets |
---|
Information Technology........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 22.4% |
Financials........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 17.8 |
Industrials........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 14.6 |
Materials........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 10.9 |
Consumer Discretionary........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 9.9 |
Consumer Staples........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 9.5 |
Health Care........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 8.7 |
Communication Services........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.1 |
Energy........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 1.8 |
Utilities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 1.8 |
Real Estate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 0.3 |
Short-Term Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 1.3 |
Liabilities in Excess of Other Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | (1.1) |
|
SecurityFootnote Reference(b) | Percent of Net Assets |
---|
Contemporary Amperex Technology Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 4.0% |
Ping An Insurance Group Co. of China Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 3.9 |
Kweichow Moutai Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 3.9 |
China Merchants Bank Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 3.2 |
Wuliangye Yibin Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 3.2 |
BOE Technology Group Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.5 |
Huatai Securities Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.3 |
BYD Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.3 |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.3 |
Midea Group Co. Ltd., Class A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | 2.0 |
| |
Footnote | Description |
Footnote(a) | For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes. |
Footnote(b) | Excludes short-term securities. |
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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) 537-4942.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
© 2024 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
BlackRock China A Opportunities Fund
Annual Shareholder Report — October 31, 2024
(b) Not Applicable
Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.
Item 3 – Audit Committee Financial Expert – The registrant’s board of directors (the “board of trustees”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
Neil A. Cotty
Henry R. Keizer
Kenneth L. Urish
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
Item 4 – Principal Accountant Fees and Services
The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:
| (a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees |
Entity Name | Current Fiscal Year End | Previous Fiscal Year End | Current Fiscal Year End | Previous Fiscal Year End | Current Fiscal Year End | Previous Fiscal Year End | Current Fiscal Year End | Previous Fiscal Year End |
BlackRock China A Opportunities Fund | $36,414 | $36,414 | $0 | $0 | $16,328 | $18,700 | $0 | $407 |
The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):
| Current Fiscal Year End | Previous Fiscal Year End |
(b) Audit-Related Fees1 | $0 | $0 |
(c) Tax Fees2 | $0 | $0 |
(d) All Other Fees3 | $2,149,000 | $2,154,000 |
1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees.
2 The nature of the services includes tax compliance, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, tax distribution and analysis reviews.
3 Paid in their entirety by BlackRock, relating to a service organization review ("SSAE 18") and subscription to the Deloitte Accounting Research Tool. These amounts represent the aggregate fees paid by BlackRock and were not specifically allocated on a per Fund basis.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) The amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:
Entity Name | Current Fiscal Year End | Previous Fiscal Year End |
BlackRock China A Opportunities Fund | $16,328 | $19,107 |
Additionally, amounts billed by D&T to the Investment Adviser and affiliated fund service providers during the current and previous fiscal years related to a service organization review ("SSAE 18") and subscription to the Deloitte Accounting Research Tool are:
Current Fiscal Year End | Previous Fiscal Year End |
$2,149,000 | $2,154,000 |
These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) – Not Applicable
(j) – Not Applicable
Item 5 – Audit Committee of Listed Registrant – Not Applicable
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Financial Statements and Financial Highlights for Open-End Management Investment Companies filed under Item 7 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 – Financial Statements and Financial Highlights for Open-End Management Investment Companies
(a) The registrant’s Financial Statements are attached herewith.
(b) The registrant’s Financial Highlights are attached herewith.
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2024
Annual
Financial
Statements
and
Additional
Information
BlackRock
Funds
SM
BlackRock
China
A
Opportunities
Fund
Derivative
Financial
Instruments
.............................................................................................
3
Schedule
of
Investments
..................................................................................................
4
Statement
of
Assets
and
Liabilities
............................................................................................
9
Statement
of
Operations
..................................................................................................
11
Statements
of
Changes
in
Net
Assets
..........................................................................................
12
Financial
Highlights
.....................................................................................................
13
Notes
to
Financial
Statements
..............................................................................................
15
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
22
Important
Tax
Information
.................................................................................................
23
Additional
Information
....................................................................................................
24
Disclosure
of
Investment
Advisory
Agreement
.....................................................................................
26
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
29
Derivative
Financial
Instruments
Derivative
Financial
Instruments
The
Fund
may
invest
in
various
derivative
financial
instruments.
These
instruments
are
used
to
obtain
exposure
to
a
security,
commodity,
index,
market,
and/or
other
assets
without
owning
or
taking
physical
custody
of
securities,
commodities
and/or
other
referenced
assets
or
to
manage
market,
equity,
credit,
interest
rate,
foreign
currency
exchange
rate,
commodity
and/or
other
risks.
Derivative
financial
instruments
may
give
rise
to
a
form
of
economic
leverage
and
involve
risks,
including
the
imperfect
correlation
between
the
value
of
a
derivative
financial
instrument
and
the
underlying
asset,
possible
default
of
the
counterparty
to
the
transaction
or
illiquidity
of
the
instrument. Pursuant
to Rule
18f-4
under
the
1940
Act,
among
other
things,
the
Fund
must
either
use
derivative
financial
instruments
with
embedded
leverage
in
a
limited
manner
or
comply
with
an
outer
limit
on
fund
leverage
risk
based
on
value-at-risk.
The
Fund’s
successful
use
of
a
derivative
financial
instrument
depends
on
the
investment
adviser’s
ability
to
predict
pertinent
market
movements
accurately,
which
cannot
be
assured.
The
use
of
these
instruments
may
result
in
losses
greater
than
if
they
had
not
been
used,
may
limit
the
amount
of
appreciation the
Fund
can
realize
on
an
investment
and/or
may
result
in
lower
distributions
paid
to
shareholders.
The
Fund’s
investments
in
these
instruments,
if
any,
are
discussed
in
detail
in
the
Notes
to
Financial
Statements.
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
Schedule
of
Investments
October
31,
2024
BlackRock
China
A
Opportunities
Fund
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Common
Stocks
Aerospace
&
Defense
—
0.4%
AECC
Aero-Engine
Control
Co.
Ltd.
,
Class
A
.
7,800
$
26,256
AECC
Aviation
Power
Co.
Ltd.
,
Class
A
.....
2,300
13,816
Kuang-Chi
Technologies
Co.
Ltd.
,
Class
A
...
3,700
22,025
62,097
Air
Freight
&
Logistics
—
1.1%
Eastern
Air
Logistics
Co.
Ltd.
,
Class
A
......
6,900
16,485
SF
Holding
Co.
Ltd.
,
Class
A
............
26,600
167,141
183,626
Automobile
Components
—
0.6%
Autel
Intelligent
Technology
Corp.
Ltd.
,
Class
A
3,407
14,605
Huayu
Automotive
Systems
Co.
Ltd.
,
Class
A
.
32,400
68,684
Ningbo
Joyson
Electronic
Corp.
,
Class
A
....
11,300
26,393
109,682
Automobiles
—
4.7%
BYD
Co.
Ltd.
,
Class
A
.................
9,600
395,239
Great
Wall
Motor
Co.
Ltd.
,
Class
A
........
49,200
181,013
SAIC
Motor
Corp.
Ltd.
,
Class
A
..........
91,500
165,411
Seres
Group
Co.
Ltd.
,
Class
A
(a)
..........
3,900
63,853
805,516
Banks
—
8.0%
Bank
of
Beijing
Co.
Ltd.
,
Class
A
.........
166,100
131,912
Bank
of
Hangzhou
Co.
Ltd.
,
Class
A
.......
30,900
60,170
Bank
of
Jiangsu
Co.
Ltd.
,
Class
A
.........
48,400
59,929
Bank
of
Shanghai
Co.
Ltd.
,
Class
A
........
99,919
108,841
China
CITIC
Bank
Corp.
Ltd.
,
Class
A
......
24,400
22,403
China
Merchants
Bank
Co.
Ltd.
,
Class
A
....
103,859
545,450
Huaxia
Bank
Co.
Ltd.
,
Class
A
...........
150,900
149,849
Industrial
Bank
Co.
Ltd.
,
Class
A
..........
83,600
214,719
Ping
An
Bank
Co.
Ltd.
,
Class
A
...........
26,300
42,083
Shanghai
Rural
Commercial
Bank
Co.
Ltd.
,
Class
A
........................
32,300
35,181
1,370,537
Beverages
—
7.8%
Beijing
Yanjing
Brewery
Co.
Ltd.
,
Class
A
....
9,400
13,418
Eastroc
Beverage
Group
Co.
Ltd.
,
Class
A
...
780
23,215
Kweichow
Moutai
Co.
Ltd.
,
Class
A
........
3,124
670,422
Luzhou
Laojiao
Co.
Ltd.
,
Class
A
.........
4,600
87,635
Wuliangye
Yibin
Co.
Ltd.
,
Class
A
.........
26,225
541,032
1,335,722
Biotechnology
—
0.2%
CanSino
Biologics,
Inc.
,
Class
A
(a)
.........
3,771
30,032
Capital
Markets
—
4.9%
China
International
Capital
Corp.
Ltd.
,
Class
A
10,500
52,223
CITIC
Securities
Co.
Ltd.
,
Class
A
.........
26,625
105,132
East
Money
Information
Co.
Ltd.
,
Class
A
....
16,800
54,706
Huatai
Securities
Co.
Ltd.
,
Class
A
........
160,900
398,399
Shenwan
Hongyuan
Group
Co.
Ltd.
,
Class
A
.
260,910
195,020
SooChow
Securities
Co.
Ltd.
,
Class
A
......
28,700
32,806
838,286
Chemicals
—
3.0%
Hengli
Petrochemical
Co.
Ltd.
,
Class
A
.....
2,000
3,859
KBC
Corp.
Ltd.
,
Class
A
(a)
..............
4,197
14,803
Luxi
Chemical
Group
Co.
Ltd.
,
Class
A
.....
107,900
177,290
Meihua
Holdings
Group
Co.
Ltd.
,
Class
A
....
57,000
75,796
Shenzhen
Dynanonic
Co.
Ltd.
,
Class
A
(a)
....
2,900
16,204
Tangshan
Sanyou
Chemical
Industries
Co.
Ltd.
,
Class
A
........................
25,600
19,805
Xinfengming
Group
Co.
Ltd.
,
Class
A
.......
13,000
20,564
Yunnan
Yuntianhua
Co.
Ltd.
,
Class
A
......
40,507
130,984
Security
Shares
Shares
Value
Chemicals
(continued)
Zhejiang
NHU
Co.
Ltd.
,
Class
A
..........
18,000
$
57,325
516,630
Commercial
Services
&
Supplies
—
0.1%
Shanghai
M&G
Stationery,
Inc.
,
Class
A
.....
5,600
22,811
Communications
Equipment
—
2.5%
Suzhou
TFC
Optical
Communication
Co.
Ltd.
,
Class
A
........................
2,700
48,120
Yealink
Network
Technology
Corp.
Ltd.
,
Class
A
10,964
59,992
Zhongji
Innolight
Co.
Ltd.
,
Class
A
........
4,600
90,818
ZTE
Corp.
,
Class
A
..................
53,426
226,565
425,495
Construction
&
Engineering
—
0.4%
Shanghai
Construction
Group
Co.
Ltd.
,
Class
A
217,500
76,778
Construction
Materials
—
0.7%
Anhui
Conch
Cement
Co.
Ltd.
,
Class
A
.....
27,190
102,172
BBMG
Corp.
,
Class
A
.................
65,500
17,007
119,179
Electrical
Equipment
—
5.9%
Contemporary
Amperex
Technology
Co.
Ltd.
,
Class
A
........................
19,749
684,864
Farasis
Energy
Gan
Zhou
Co.
Ltd.
,
Class
A
(a)
.
19,682
33,241
Goneo
Group
Co.
Ltd.
,
Class
A
..........
16,702
170,988
Pylon
Technologies
Co.
Ltd.
,
Class
A
.......
2,640
18,143
Shanghai
Electric
Group
Co.
Ltd.
,
Class
A
(a)
..
51,800
65,601
Zhejiang
Chint
Electrics
Co.
Ltd.
,
Class
A
....
11,200
36,751
1,009,588
Electronic
Equipment,
Instruments
&
Components
—
11.0%
Avary
Holding
Shenzhen
Co.
Ltd.
,
Class
A
...
2,100
11,046
BOE
Technology
Group
Co.
Ltd.
,
Class
A
....
652,300
427,780
Eoptolink
Technology,
Inc.
Ltd.
,
Class
A
.....
2,000
36,231
Foxconn
Industrial
Internet
Co.
Ltd.
,
Class
A
..
66,400
222,516
GoerTek,
Inc.
,
Class
A
................
82,700
271,276
Luxshare
Precision
Industry
Co.
Ltd.
,
Class
A
.
14,500
85,360
Quectel
Wireless
Solutions
Co.
Ltd.
,
Class
A
.
5,047
37,096
Shengyi
Technology
Co.
Ltd.
,
Class
A
......
61,400
176,688
Shennan
Circuits
Co.
Ltd.
,
Class
A
........
6,500
95,213
Shenzhen
JPT
Opto-Electronics
Co.
Ltd.
,
Class
A
............................
4,767
33,619
TCL
Technology
Group
Corp.
,
Class
A
......
171,100
127,410
Tianma
Microelectronics
Co.
Ltd.
,
Class
A
(a)
..
154,336
198,312
Universal
Scientific
Industrial
Shanghai
Co.
Ltd.
,
Class
A
........................
26,000
54,217
WUS
Printed
Circuit
Kunshan
Co.
Ltd.
,
Class
A
3,300
18,708
Zhejiang
Crystal-Optech
Co.
Ltd.
,
Class
A
...
25,950
83,153
Zhejiang
Jiecang
Linear
Motion
Technology
Co.
Ltd.
,
Class
A
.....................
5,400
14,804
1,893,429
Energy
Equipment
&
Services
—
0.3%
Offshore
Oil
Engineering
Co.
Ltd.
,
Class
A
...
73,100
55,682
Entertainment
—
0.7%
G-bits
Network
Technology
Xiamen
Co.
Ltd.
,
Class
A
........................
551
15,774
Perfect
World
Co.
Ltd.
,
Class
A
..........
35,171
49,561
Zhejiang
Century
Huatong
Group
Co.
Ltd.
,
Class
A
(a)
.......................
84,800
56,250
121,585
Food
Products
—
1.7%
Guangdong
Haid
Group
Co.
Ltd.
,
Class
A
...
28,600
176,274
Inner
Mongolia
Yili
Industrial
Group
Co.
Ltd.
,
Class
A
........................
20,000
78,536
Schedule
of
Investments
(continued)
October
31,
2024
BlackRock
China
A
Opportunities
Fund
(Percentages
shown
are
based
on
Net
Assets)
Security
Shares
Shares
Value
Food
Products
(continued)
Muyuan
Foods
Co.
Ltd.
,
Class
A
(a)
........
4,800
$
29,431
Wens
Foodstuff
Group
Co.
Ltd.
,
Class
A
....
5,466
14,302
298,543
Ground
Transportation
—
0.1%
Beijing-Shanghai
High
Speed
Railway
Co.
Ltd.
,
Class
A
........................
17,200
13,115
Health
Care
Equipment
&
Supplies
—
2.4%
Sansure
Biotech,
Inc.
,
Class
A
...........
4,611
14,553
Shenzhen
Mindray
Bio-Medical
Electronics
Co.
Ltd.
,
Class
A
.....................
10,397
389,212
403,765
Household
Durables
—
4.2%
Gree
Electric
Appliances,
Inc.
of
Zhuhai
,
Class
A
............................
44,115
269,684
Haier
Smart
Home
Co.
Ltd.
,
Class
A
.......
13,600
55,845
Hisense
Home
Appliances
Group
Co.
Ltd.
,
Class
A
........................
14,635
57,628
Midea
Group
Co.
Ltd.
,
Class
A
...........
34,487
345,426
728,583
Independent
Power
and
Renewable
Electricity
Producers
—
1.8%
China
Yangtze
Power
Co.
Ltd.
,
Class
A
.....
17,000
65,837
GD
Power
Development
Co.
Ltd.
,
Class
A
...
202,600
137,710
Huaneng
Power
International,
Inc.
,
Class
A
..
43,100
43,936
Inner
Mongolia
MengDian
HuaNeng
Thermal
Power
Corp.
Ltd.
,
Class
A
............
80,900
50,602
SDIC
Power
Holdings
Co.
Ltd.
,
Class
A
.....
3,900
8,329
306,414
Insurance
—
4.9%
China
Pacific
Insurance
Group
Co.
Ltd.
,
Class
A
15,100
78,077
New
China
Life
Insurance
Co.
Ltd.
,
Class
A
..
1,900
12,812
People's
Insurance
Co.
Group
of
China
Ltd.
(The)
,
Class
A
....................
70,500
70,405
Ping
An
Insurance
Group
Co.
of
China
Ltd.
,
Class
A
........................
85,740
674,036
835,330
Leisure
Products
—
0.2%
Zhejiang
Cfmoto
Power
Co.
Ltd.
,
Class
A
....
1,800
39,910
Life
Sciences
Tools
&
Services
—
0.5%
WuXi
AppTec
Co.
Ltd.
,
Class
A
...........
11,600
84,788
Machinery
—
5.8%
China
International
Marine
Containers
Group
Co.
Ltd.
,
Class
A
..................
13,700
16,611
CRRC
Corp.
Ltd.
,
Class
A
..............
81,590
95,280
Tian
Di
Science
&
Technology
Co.
Ltd.
,
Class
A
68,700
59,305
Weichai
Power
Co.
Ltd.
,
Class
A
..........
179,100
335,985
Yutong
Bus
Co.
Ltd.
,
Class
A
............
62,875
213,961
Zhengzhou
Coal
Mining
Machinery
Group
Co.
Ltd.
,
Class
A
.....................
82,200
154,769
Zoomlion
Heavy
Industry
Science
&
Technology
Co.
Ltd.
,
Class
A
..................
128,900
125,873
1,001,784
Marine
Transportation
—
0.8%
COSCO
SHIPPING
Holdings
Co.
Ltd.
,
Class
A
66,110
135,308
Media
—
0.4%
Focus
Media
Information
Technology
Co.
Ltd.
,
Class
A
........................
66,400
67,254
Metals
&
Mining
—
7.2%
Aluminum
Corp.
of
China
Ltd.
,
Class
A
.....
94,100
100,707
Baoshan
Iron
&
Steel
Co.
Ltd.
,
Class
A
.....
350,310
321,221
Security
Shares
Shares
Value
Metals
&
Mining
(continued)
CMOC
Group
Ltd.
,
Class
A
.............
78,700
$
83,474
Huaibei
Mining
Holdings
Co.
Ltd.
,
Class
A
...
42,067
91,375
Jiangxi
Copper
Co.
Ltd.
,
Class
A
.........
4,500
13,700
Shandong
Nanshan
Aluminum
Co.
Ltd.
,
Class
A
547,400
313,292
Western
Mining
Co.
Ltd.
,
Class
A
.........
124,000
306,236
1,230,005
Oil,
Gas
&
Consumable
Fuels
—
1.5%
PetroChina
Co.
Ltd.
,
Class
A
............
226,000
256,798
Pharmaceuticals
—
5.7%
Asymchem
Laboratories
Tianjin
Co.
Ltd.
,
Class
A
............................
1,600
18,668
Changchun
High-Tech
Industry
Group
Co.
Ltd.
,
Class
A
........................
4,500
65,909
Dong-E-E-Jiao
Co.
Ltd.
,
Class
A
..........
27,300
225,933
Jiangsu
Hengrui
Pharmaceuticals
Co.
Ltd.
,
Class
A
........................
25,377
166,334
Joincare
Pharmaceutical
Group
Industry
Co.
Ltd.
,
Class
A
.....................
109,997
174,441
Livzon
Pharmaceutical
Group,
Inc.
,
Class
A
..
14,500
74,618
Sichuan
Kelun
Pharmaceutical
Co.
Ltd.
,
Class
A
41,200
185,869
Tasly
Pharmaceutical
Group
Co.
Ltd.
,
Class
A
.
28,632
60,255
972,027
Real
Estate
Management
&
Development
—
0.3%
Red
Star
Macalline
Group
Corp.
Ltd.
,
Class
A
(a)
32,000
14,109
Shanghai
SMI
Holding
Co.
Ltd.
,
Class
A
....
25,000
17,591
Shenzhen
Overseas
Chinese
Town
Co.
Ltd.
,
Class
A
(a)
.......................
36,600
15,248
46,948
Semiconductors
&
Semiconductor
Equipment
—
6.0%
Amlogic
Shanghai
Co.
Ltd.
,
Class
A
.......
4,347
42,458
Bestechnic
Shanghai
Co.
Ltd.
,
Class
A
.....
1,278
39,610
Chipsea
Technologies
Shenzhen
Corp.
Ltd.
,
Class
A
(a)
.......................
3,896
19,255
Espressif
Systems
Shanghai
Co.
Ltd.
,
Class
A
1,933
34,324
Focuslight
Technologies,
Inc.
,
Class
A
......
1,246
13,897
Giantec
Semiconductor
Corp.
,
Class
A
.....
1,456
12,347
GigaDevice
Semiconductor,
Inc.
,
Class
A
(a)
...
9,100
114,748
Hygon
Information
Technology
Co.
Ltd.
,
Class
A
1,975
35,590
Montage
Technology
Co.
Ltd.
,
Class
A
......
4,768
45,761
Motorcomm
Electronic
Technology
Co.
Ltd.
,
Class
A
(a)
.......................
1,791
21,905
Puya
Semiconductor
Shanghai
Co.
Ltd.
,
Class
A
............................
2,083
24,899
Rockchip
Electronics
Co.
Ltd.
,
Class
A
.....
3,800
47,032
Shanghai
Awinic
Technology
Co.
Ltd.
,
Class
A
8,742
84,760
Shanghai
V-Test
Semiconductor
Tech.
Co.
Ltd.
,
Class
A
........................
4,402
37,017
Shenzhen
Goodix
Technology
Co.
Ltd.
,
Class
A
10,000
125,876
Trina
Solar
Co.
Ltd.
,
Class
A
............
16,585
58,362
Verisilicon
Microelectronics
Shanghai
Co.
Ltd.
,
Class
A
(a)
.......................
6,658
39,056
Will
Semiconductor
Co.
Ltd.
Shanghai
,
Class
A
15,535
233,507
1,030,404
Software
—
2.6%
Arcsoft
Corp.
Ltd.
,
Class
A
..............
5,157
25,220
Beijing
Kingsoft
Office
Software,
Inc.
,
Class
A
.
2,828
102,157
DBAPP
Security
Ltd.
,
Class
A
(a)
..........
8,671
59,447
Fujian
Foxit
Software
Development
JSC
Ltd.
,
Class
A
........................
7,608
75,064
Glodon
Co.
Ltd.
,
Class
A
...............
31,660
62,959
Sangfor
Technologies,
Inc.
,
Class
A
.......
1,700
15,783
Topsec
Technologies
Group,
Inc.
,
Class
A
...
45,500
50,372
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
Schedule
of
Investments
(continued)
October
31,
2024
BlackRock
China
A
Opportunities
Fund
(Percentages
shown
are
based
on
Net
Assets)
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
October
31,
2024
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Security
Shares
Shares
Value
Software
(continued)
Transwarp
Technology
Shanghai
Co.
Ltd.
,
Class
A
(a)
...........................
2,415
$
13,061
Yonyou
Network
Technology
Co.
Ltd.
,
Class
A
(a)
27,628
44,084
448,147
Specialty
Retail
—
0.1%
HLA
Group
Corp.
Ltd.
,
Class
A
...........
26,822
21,446
Technology
Hardware,
Storage
&
Peripherals
—
0.3%
Anker
Innovations
Technology
Co.
Ltd.
,
Class
A
3,900
43,922
Wireless
Telecommunication
Services
—
1.0%
China
United
Network
Communications
Ltd.
,
Class
A
........................
246,079
172,437
Total
Long-Term
Investments
—
99
.8
%
(Cost:
$
15,123,586
)
...............................
17,113,603
Short-Term
Securities
Money
Market
Funds
—
1.3%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
,
4.75
%
(b)
(c)
..................
227,421
227,421
Total
Short-Term
Securities
—
1
.3
%
(Cost:
$
227,421
)
.................................
227,421
Total
Investments
—
101
.1
%
(Cost:
$
15,351,007
)
...............................
17,341,024
Liabilities
in
Excess
of
Other
Assets
—
(
1.1
)
%
.............
(
194,003
)
Net
Assets
—
100.0%
...............................
$
17,147,021
(a)
Non-income
producing
security.
(b)
Affiliate
of
the
Fund.
(c)
Annualized
7-day
yield
as
of
period
end.
Affiliated
Issuer
Value
at
10/31/23
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
10/31/24
Shares
Held
at
10/31/24
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
.
$
51,164
$
176,257
(a)
$
—
$
—
$
—
$
227,421
227,421
$
10,027
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
For
purposes
of
this
report,
industry
and
sector
sub-classifications
may
differ
from
those
utilized
by
the
Fund
for
compliance
purposes.
Schedule
of
Investments
(continued)
October
31,
2024
BlackRock
China
A
Opportunities
Fund
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
For
more
information
about
the
Fund’s
investment
risks
regarding
derivative
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Long
Contracts
FTSE
China
A50
Index
......................................................
16
11/28/24
$
212
$
(
4,745
)
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statement
of
Assets
and
Liabilities
were
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
......
$
—
$
—
$
4,745
$
—
$
—
$
—
$
4,745
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statement
of
Assets
and
Liabilities,
only
current
day’s
variation
margin
is
reported
in
receivables
or
payables
and
the
net
cumulative
unrealized
appreciation
(depreciation)
is
included
in
accumulated
earnings
(loss).
For
the
period
ended
October
31,
2024,
the
effect
of
derivative
financial
instruments
in
the
Statement
of
Operations
was
as
follows:
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net
Realized
Gain
(Loss)
from
Futures
c
ontracts
.......................
$
—
$
—
$
13,220
$
—
$
—
$
—
$
13,220
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Futures
c
ontracts
.......................
$
—
$
—
$
(
5,478
)
$
—
$
—
$
—
$
(
5,478
)
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts
Average
notional
value
of
contracts
—
long
..................................................................................
$
156,288
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
Schedule
of
Investments
(continued)
October
31,
2024
BlackRock
China
A
Opportunities
Fund
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments
at
the
measurement
date.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the Schedule
of
Investments
above.
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Common
Stocks
Aerospace
&
Defense
....................................
$
—
$
62,097
$
—
$
62,097
Air
Freight
&
Logistics
....................................
—
183,626
—
183,626
Automobile
Components
..................................
—
109,682
—
109,682
Automobiles
..........................................
—
805,516
—
805,516
Banks
...............................................
—
1,370,537
—
1,370,537
Beverages
...........................................
—
1,335,722
—
1,335,722
Biotechnology
.........................................
—
30,032
—
30,032
Capital
Markets
........................................
212,061
626,225
—
838,286
Chemicals
............................................
—
516,630
—
516,630
Commercial
Services
&
Supplies
.............................
—
22,811
—
22,811
Communications
Equipment
................................
—
425,495
—
425,495
Construction
&
Engineering
................................
—
76,778
—
76,778
Construction
Materials
....................................
—
119,179
—
119,179
Electrical
Equipment
.....................................
—
1,009,588
—
1,009,588
Electronic
Equipment,
Instruments
&
Components
.................
—
1,893,429
—
1,893,429
Energy
Equipment
&
Services
..............................
—
55,682
—
55,682
Entertainment
.........................................
—
121,585
—
121,585
Food
Products
.........................................
—
298,543
—
298,543
Ground
Transportation
...................................
—
13,115
—
13,115
Health
Care
Equipment
&
Supplies
...........................
—
403,765
—
403,765
Household
Durables
.....................................
—
728,583
—
728,583
Independent
Power
and
Renewable
Electricity
Producers
............
74,166
232,248
—
306,414
Insurance
............................................
—
835,330
—
835,330
Leisure
Products
.......................................
—
39,910
—
39,910
Life
Sciences
Tools
&
Services
..............................
—
84,788
—
84,788
Machinery
............................................
—
1,001,784
—
1,001,784
Marine
Transportation
....................................
—
135,308
—
135,308
Media
...............................................
—
67,254
—
67,254
Metals
&
Mining
........................................
—
1,230,005
—
1,230,005
Oil,
Gas
&
Consumable
Fuels
...............................
—
256,798
—
256,798
Pharmaceuticals
.......................................
—
972,027
—
972,027
Real
Estate
Management
&
Development
.......................
14,109
32,839
—
46,948
Semiconductors
&
Semiconductor
Equipment
....................
21,905
1,008,499
—
1,030,404
Software
.............................................
—
448,147
—
448,147
Specialty
Retail
........................................
—
21,446
—
21,446
Technology
Hardware,
Storage
&
Peripherals
....................
—
43,922
—
43,922
Wireless
Telecommunication
Services
.........................
—
172,437
—
172,437
Short-Term
Securities
Money
Market
Funds
......................................
227,421
—
—
227,421
$
549,662
$
16,791,362
$
—
$
17,341,024
Derivative
Financial
Instruments
(a)
Liabilities
Equity
contracts
...........................................
$
—
$
(
4,745
)
$
—
$
(
4,745
)
(a)
Derivative
financial
instruments
are
futures
contracts.
Futures
contracts
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
instrument.
Statement
of
Assets
and
Liabilities
October
31,
2024
Statement
of
Assets
and
Liabilities
See
notes
to
financial
statements.
BlackRock
China
A
Opportunities
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
........................................................................................
$
17,113,603
Investments,
at
value
—
affiliated
(b)
..........................................................................................
227,421
Cash
pledged:
–
Futures
contracts
....................................................................................................
21,000
Foreign
currency,
at
value
(c)
...............................................................................................
5,874
Receivables:
–
Capital
shares
sold
...................................................................................................
1,257
Dividends
—
unaffiliated
...............................................................................................
749
Dividends
—
affiliated
.................................................................................................
1,625
From
the
Manager
...................................................................................................
8,937
Prepaid
e
xpenses
.....................................................................................................
10,984
Total
a
ssets
.........................................................................................................
17,391,450
LIABILITIES
Payables:
–
Accounting
services
fees
...............................................................................................
15,481
Administration
fees
...................................................................................................
153
Capital
shares
redeemed
...............................................................................................
51,299
Custodian
fees
......................................................................................................
29,704
Interest
expense
....................................................................................................
12
Trustees'
and
Officer's
fees
.............................................................................................
995
Other
affiliate
fees
...................................................................................................
137
Professional
fees
....................................................................................................
121,426
Variation
margin
on
futures
contracts
.......................................................................................
1,222
Other
accrued
expenses
...............................................................................................
24,000
Total
li
abilities
........................................................................................................
244,429
Commitments
and
contingent
liabilities
$
–
NET
ASSETS
........................................................................................................
$
17,147,021
NET
ASSETS
CONSIST
OF:
Paid-in
capital
........................................................................................................
$
16,877,529
Accumulated
earnings
..................................................................................................
269,492
NET
ASSETS
........................................................................................................
$
17,147,021
(a)
Investments,
at
cost
—
unaffiliated
.................................................................................
$
15,123,586
(b)
Investments,
at
cost
—
affiliated
...................................................................................
$
227,421
(c)
Foreign
currency,
at
cost
.......................................................................................
$
5,871
Statement
of
Assets
and
Liabilities
(continued)
October
31,
2024
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
See
notes
to
financial
statements.
BlackRock
China
A
Opportunities
Fund
NET
ASSET
VALUE
Institutional
Net
assets
.........................................................................................................
$
8,776,905
Shares
outstanding
...................................................................................................
653,843
Net
asset
value
.....................................................................................................
$
13.42
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Class
K
Net
assets
.........................................................................................................
$
8,370,116
Shares
outstanding
...................................................................................................
623,420
Net
asset
value
.....................................................................................................
$
13.43
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Statement
of
Operations
Year
Ended
October
31,
2024
See
notes
to
financial
statements.
BlackRock
China
A
Opportunities
Fund
INVESTMENT
INCOME
Dividends
—
unaffiliated
...............................................................................................
$
470,783
Dividends
—
affiliated
.................................................................................................
10,027
Interest
—
unaffiliated
.................................................................................................
522
Foreign
taxes
withheld
................................................................................................
(
47,078
)
Total
investment
income
.................................................................................................
434,254
EXPENSES
Professional
.......................................................................................................
153,475
Investment
advisory
..................................................................................................
107,598
Custodian
.........................................................................................................
48,403
Registration
.......................................................................................................
40,307
Accounting
services
..................................................................................................
35,356
Printing
and
postage
.................................................................................................
20,020
Administration
.....................................................................................................
6,097
Trustees
and
Officer
..................................................................................................
6,052
Transfer
agent
—
class
specific
..........................................................................................
3,095
Administration
—
class
specific
..........................................................................................
2,870
Miscellaneous
......................................................................................................
11,195
Total
expenses
excluding
interest
expense
.....................................................................................
434,468
Interest
expense
....................................................................................................
1,351
Total
expenses
.......................................................................................................
435,819
Less:
–
Administration
fees
waived
.............................................................................................
(
6,097
)
Administration
fees
waived
by
the
Manager
—
class
specific
.......................................................................
(
1,872
)
Fees
waived
and/or
reimbursed
by
the
Manager
...............................................................................
(
287,473
)
Transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific
..........................................................
(
548
)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
139,829
Net
investment
income
..................................................................................................
294,425
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
1,966,769
Net
realized
gain
(loss)
from:
$
–
Investments
—
unaffiliated
...........................................................................................
(
673,503
)
Foreign
currency
transactions
.........................................................................................
(
1,581
)
Futures
contracts
..................................................................................................
13,220
A
(661,864)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
unaffiliated
...........................................................................................
2,634,091
Foreign
currency
translations
..........................................................................................
20
Futures
contracts
..................................................................................................
(
5,478
)
A
2,628,633
Net
realized
and
unrealized
gain
...........................................................................................
1,966,769
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
..................................................................
$
2,261,194
Statements
of
Changes
in
Net
Assets
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
See
notes
to
financial
statements.
BlackRock
China
A
Opportunities
Fund
Year
Ended
10/31/24
Year
Ended
10/31/23
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..............................................................................
$
294,425
$
267,978
Net
realized
loss
..................................................................................
(
661,864
)
(
1,316,169
)
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
2,628,633
1,287,190
Net
increase
in
net
assets
resulting
from
operations
.............................................................
2,261,194
238,999
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Institutional
.....................................................................................
(
148,832
)
(
135,504
)
Class
K
.......................................................................................
(
129,971
)
(
69,731
)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(278,803
)
(205,235
)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
(decrease)
in
net
assets
derived
from
capital
share
transactions
...........................................
1,057,304
(4,560,942
)
NET
ASSETS
Total
increase
(decrease)
in
net
assets
.....................................................................
3,039,695
(
4,527,178
)
Beginning
of
year
....................................................................................
14,107,326
18,634,504
End
of
year
........................................................................................
$
17,147,021
$
14,107,326
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
BlackRock
China
A
Opportunities
Fund
Institutional
Year
Ended
10/31/24
Year
Ended
10/31/23
Year
Ended
10/31/22
Year
Ended
10/31/21
Year
Ended
10/31/20
Net
asset
value,
beginning
of
year
............................
$
11.76
$
11.90
$
18.67
$
16.78
$
13.44
Net
investment
income
(a)
..................................
0
.24
0
.17
0
.11
0
.15
0
.11
Net
realized
and
unrealized
gain
(loss)
.........................
1
.65
(
0
.19
)
(
6
.66
)
2
.41
4
.87
Net
increase
(decrease)
from
investment
operations
.................
1.89
(0.02
)
(6.55
)
2.56
4.98
Distributions
(b)
–
–
–
–
–
From
net
investment
income
...............................
(
0
.23
)
(
0
.12
)
(
0
.22
)
(
0
.04
)
(
0
.42
)
From
net
realized
gain
....................................
—
—
—
(
0
.63
)
(
1
.22
)
Total
distributions
.........................................
(0.23
)
(0.12
)
(0.22
)
(0.67
)
(1.64
)
Net
asset
value,
end
of
year
................................
$
13.42
$
11.76
$
11.90
$
18.67
$
16.78
Total
Return
(c)
Based
on
net
asset
value
...................................
16.43
%
(0.30
)%
(35.52
)%
15.58
%
41.53
%
(d)
Ratios
to
Average
Net
Assets
(e)
Total
expen
ses
..........................................
3.05
%
2.54
%
1.94
%
1.69
%
2.53
%
Total
expenses
after
fees
waived
and/or
reimbursed
.................
1.00
%
0.99
%
0.99
%
0.98
%
0.97
%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
.
.............................................
0.99
%
0.99
%
0.99
%
0.98
%
0.97
%
Net
investment
income
....................................
2.01
%
1.27
%
0.68
%
0.80
%
0.78
%
Supplemental
Data
Net
assets,
end
of
year
(000)
.................................
$
8,777
$
7,760
$
12,309
$
37,918
$
12,925
Portfolio
turnover
rate
......................................
149
%
139
%
168
%
164
%
214
%
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(d)
Includes
payment
from
an
affiliate,
which
impacted
the
Fund's
total
return.
Excluding
the
payment
from
an
affiliate,
the
Fund's
total
return
is
40.35%.
(e)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
BlackRock
China
A
Opportunities
Fund
Class
K
Year
Ended
10/31/24
Year
Ended
10/31/23
Year
Ended
10/31/22
Year
Ended
10/31/21
Year
Ended
10/31/20
Net
asset
value,
beginning
of
year
............................
$
11.77
$
11.91
$
18.68
$
16.78
$
13.45
Net
investment
income
(a)
..................................
0
.25
0
.18
0
.15
0
.11
0
.10
Net
realized
and
unrealized
gain
(loss)
.........................
1
.65
(
0
.19
)
(
6
.69
)
2
.46
4
.87
Net
increase
(decrease)
from
investment
operations
.................
1.90
(0.01
)
(6.54
)
2.57
4.97
Distributions
(b)
–
–
–
–
–
From
net
investment
income
...............................
(
0
.24
)
(
0
.13
)
(
0
.23
)
(
0
.04
)
(
0
.42
)
From
net
realized
gain
....................................
—
—
—
(
0
.63
)
(
1
.22
)
Total
distributions
.........................................
(0.24
)
(0.13
)
(0.23
)
(0.67
)
(1.64
)
Net
asset
value,
end
of
year
................................
$
13.43
$
11.77
$
11.91
$
18.68
$
16.78
Total
Return
(c)
Based
on
net
asset
value
...................................
16.51
%
(0.25
)%
(35.47
)%
15.67
%
41.45
%
(d)
Ratios
to
Average
Net
Assets
(e)
Total
expen
ses
..........................................
3.02
%
2.53
%
1.94
%
1.66
%
2.54
%
Total
expenses
after
fees
waived
and/or
reimbursed
.................
0.95
%
0.94
%
0.94
%
0.94
%
0.94
%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
.
.............................................
0.94
%
0.94
%
0.94
%
0.94
%
0.94
%
Net
investment
income
....................................
2.10
%
1.36
%
0.97
%
0.61
%
0.76
%
Supplemental
Data
Net
assets,
end
of
year
(000)
.................................
$
8,370
$
6,347
$
6,326
$
9,942
$
8,727
Portfolio
turnover
rate
......................................
149
%
139
%
168
%
164
%
214
%
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(d)
Includes
payment
from
an
affiliate,
which
impacted
the
Fund's
total
return.
Excluding
the
payment
from
an
affiliate,
the
Fund's
total
return
is
40.19%.
(e)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
See
notes
to
financial
statements.
Notes
to
Financial
Statements
Notes
to
Financial
Statements
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
China
A
Opportunities
Fund
(the
“Fund”)
is
a
series
of
the
Trust.
The
Fund
is
classified
as
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.
Institutional
and
Class
K
Shares
are
sold
only
to
certain
eligible
investors.
The
Fund,
together
with
certain
other
registered
investment
companies
advised
by
BlackRock
Advisors,
LLC
(the
“Manager”) or
its
affiliates,
is
included
in
a
complex
of
funds
referred
to
as
the BlackRock
Multi-Asset
Complex.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“U.S.
GAAP”),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies:
Investment
Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Dividend
income
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
dates.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
dates
at
fair
value.
Dividends
from
foreign
securities
where
the
ex-dividend
dates
may
have
passed
are
subsequently
recorded
when
the
Fund
is
informed
of
the
ex-dividend
dates.
Under
the
applicable
foreign
tax
laws,
a
withholding
tax
at
various
rates
may
be
imposed
on
capital
gains,
dividends
and
interest.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities,
is
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets.
Foreign
Currency
Translation:
The
Fund’s
books
and
records
are
maintained
in
U.S.
dollars.
Securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
using
exchange
rates
determined
as
of
the
close
of
trading
on
the
New
York
Stock
Exchange
(“NYSE”).
Purchases
and
sales
of
investments
are
recorded
at
the
rates
of
exchange
prevailing
on
the
respective
dates
of
such
transactions.
Generally,
when
the
U.S.
dollar
rises
in
value
against
a
foreign
currency,
the
investments
denominated
in
that
currency
will
lose
value;
the
opposite
effect
occurs
if
the
U.S.
dollar
falls
in
relative
value.
The
Fund
does
not
isolate
the
effect
of
fluctuations
in
foreign
exchange
rates
from
the
effect
of
fluctuations
in
the
market
prices
of
investments
for
financial
reporting
purposes.
Accordingly,
the
effects
of
changes
in
exchange
rates
on
investments
are
not
segregated
in
the
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
U.S.
federal
income
tax
purposes.
Foreign
Taxes:
The
Fund
may
be
subject
to
foreign
taxes
(a
portion
of
which
may
be
reclaimable)
on
income,
stock
dividends,
capital
gains
on
investments,
or
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
foreign
tax
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
the
Fund
invests.
These
foreign
taxes,
if
any,
are
paid
by
the
Fund
and
are
reflected
in
its
Statement
of
Operations
as
follows:
foreign
taxes
withheld
at
source
are
presented
as
a
reduction
of
income,
foreign
taxes
on
securities
lending
income
are
presented
as
a
reduction
of
securities
lending
income,
foreign
taxes
on
stock
dividends
are
presented
as
“Foreign
taxes
withheld”,
and
foreign
taxes
on
capital
gains
from
sales
of
investments
and
foreign
taxes
on
foreign
currency
transactions
are
included
in
their
respective
net
realized
gain
(loss)
categories.
Foreign
taxes
payable
or
deferred
as
of
October
31,
2024
,
if
any,
are
disclosed
in
the Statement
of
Assets
and
Liabilities.
Consistent
with
U.S.
GAAP
accrual
requirements
for
uncertain
tax
positions,
the
Fund
recognizes
tax
reclaims
when
the
Fund
determines
that
it
is
more
likely
than
not
that
the
Fund
will
sustain
its
position
that
it
is
due
the
reclaim.
The
Fund
files
withholding
tax
reclaims
in
certain
jurisdictions
to
recover
a
portion
of
amounts
previously
withheld.
The
Fund
may
record
a
reclaim
receivable
based
on
collectability,
which
includes
factors
such
as
the
jurisdiction’s
applicable
laws,
payment
history
and
market
convention.
The Statement
of
Operations
includes
tax
reclaims
recorded
as
well
as
professional
and
other
fees,
if
any,
associated
with
recovery
of
foreign
withholding
taxes.
Bank
Overdraft:
The
Fund
had
outstanding
cash
disbursements
exceeding
deposited
cash
amounts
at
the
custodian
during
the
reporting
period.
The
Fund
is
obligated
to
repay
the
custodian
for
any
overdraft,
including
any
related
costs
or
expenses,
where
applicable.
For
financial
reporting
purposes,
overdraft
fees,
if
any,
are
included
in
interest
expense
in
the
Statement
of
Operations.
Collateralization:
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.
Distributions:
Distributions
paid
by
the
Fund
are
recorded
on
the
ex-dividend
dates. The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP.
Share
Class
Initial
Sales
Charge
CDSC
Conversion
Privilege
Institutional
Shares
...........................................
No
No
None
Class
K
Shares
.............................................
No
No
None
Notes
to
Financial
Statements
(continued)
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
Indemnifications:
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
the
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to the
Fund
or
its
classes
are
charged
to
the
Fund
or
the
applicable
class.
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.
Other
operating
expenses
shared
by
several
funds,
including
other
funds
managed
by
the
Manager,
are
prorated
among
those
funds
on
the
basis
of
relative
net
assets
or
other
appropriate
methods.
3.
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS
Investment
Valuation
Policies:
The
Fund’s
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
each
day
that
the
Fund
is
open
for
business
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Board
of
Trustees
of
the
Trust
(the
“Board”)
has
approved
the
designation
of
the
Fund’s
Manager
as
the
valuation
designee
for
the
Fund.
The
Fund
determines
the
fair
values
of
its
financial
instruments
using
various
independent
dealers
or
pricing
services
under
the
Manager’s
policies.
If
a
security’s
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
the
Manager’s
policies
and
procedures
as
reflecting
fair
value.
The
Manager
has
formed
a
committee
(the
“Valuation
Committee”)
to
develop
pricing
policies
and
procedures
and
to
oversee
the
pricing
function
for
all
financial
instruments,
with
assistance
from
other
BlackRock
pricing
committees.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
the
Fund’s
assets
and
liabilities:
Equity
investments
traded
on
a
recognized
securities
exchange
are
valued
at
that
day’s official
closing
price,
as
applicable,
on
the
exchange
where
the
stock
is
primarily
traded.
Equity
investments
traded
on
a
recognized
exchange
for
which
there
were
no
sales
on
that
day
may
be
valued
at
the
last
trade
or
last
available
bid
(long
positions)
or
ask
(short
positions)
price.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds) are
valued
at
that
day’s
net
asset
value
(“NAV”).
Futures
contracts
are valued
based
on
that
day’s
last
reported
settlement
or
trade price
on
the
exchange
where
the
contract
is
traded.
Generally,
trading
in
foreign
instruments
is
substantially
completed
each
day
at
various
times
prior
to
the
close
of
trading
on
the NYSE.
Each
business
day,
the
Fund
uses
current
market
factors
supplied
by
independent
pricing
services
to
value
certain
foreign
instruments
(“Systematic
Fair
Value
Price”).
The
Systematic
Fair
Value
Price
is
designed
to
value
such
foreign
securities
at
fair
value
as
of
the
close
of
trading
on
the
NYSE,
which
occurs
after the
close
of
the
local
markets.
If
events
(e.g.,
market
volatility,
company
announcement or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the
Valuation
Committee
in
accordance
with the
Manager's policies
and
procedures
as
reflecting
fair
value
(“Fair
Valued
Investments”).
The
fair
valuation
approaches
that
may
be
used
by
the
Valuation
Committee include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the
Valuation
Committee
seeks
to
determine
the
price
that
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
Valuation
Committee
deems
relevant
and
consistent
with
the
principles
of
fair
value
measurement
as
of
the
measurement
date.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments
at
the
measurement
date.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows:
Level
1
—
Unadjusted
price
quotations
in
active
markets/exchanges
that
the
Fund
has
the
ability
to
access
for
identical
assets
or
liabilities;
Level
2
—
Inputs
other
than
quoted
prices
included
within
level
1
that
are
observable
for
the
asset
or
liability,
either
directly
or
indirectly;
and
Level
3 —
Inputs
that
are
unobservable
and
significant
to
the
entire
fair
value
measurement
for the
asset
or
liability
(including
the
Valuation
Committee’s
assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety. Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the
Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
privately
held
companies
or
funds
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
4.
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
manage
its
exposure
to
certain
risks
such
as
credit
risk,
equity
risk,
interest
rate
risk,
foreign
currency
exchange
rate
risk,
commodity
price
risk
or
other
risks
(e.g.,
inflation
risk).
Derivative
financial
instruments
categorized
by
risk
exposure
are
included
in
the
Schedule
of
Investments.
These
contracts
may
be
transacted
on
an
exchange or
over-the-counter.
Futures
Contracts:
Futures
contracts
are
purchased
or
sold
to
gain
exposure
to,
or
manage
exposure
to,
changes
in
interest
rates
(interest
rate
risk)
and
changes
in
the
value
of
equity
securities
(equity
risk)
or
foreign
currencies
(foreign
currency
exchange
rate
risk)
.
Notes
to
Financial
Statements
(continued)
Notes
to
Financial
Statements
Futures
contracts
are
exchange-traded agreements
between
the
Fund
and
a
counterparty
to
buy
or
sell
a
specific
quantity
of
an
underlying
instrument
at
a
specified
price
and
on
a
specified
date.
Depending
on
the
terms
of
a
contract,
it
is
settled
either
through
physical
delivery
of
the
underlying
instrument
on
the
settlement
date
or
by
payment
of
a
cash
amount
on
the
settlement
date.
Upon
entering
into
a
futures
contract,
the
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.
Amounts
pledged,
which
are
considered
restricted,
are
included
in
cash
pledged
for
futures
contracts
in
the Statement
of
Assets
and
Liabilities.
Securities
deposited
as
initial
margin
are
designated
in
the
Schedule
of
Investments
and
cash
deposited,
if
any, are
shown
as
cash
pledged
for
futures
contracts
in
the
Statement
of
Assets
and
Liabilities.
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
market
value
of
the
contract
(“variation
margin”).
Variation
margin
is
recorded
as
unrealized
appreciation
(depreciation)
and,
if
any,
shown
as
variation
margin
receivable
(or
payable)
on
futures
contracts
in
the
Statement
of
Assets
and
Liabilities.
When
the
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statement
of
Operations
equal
to
the
difference
between
the
notional
amount
of
the
contract
at
the
time
it
was
opened
and
the
notional
amount
at
the
time
it
was
closed.
The
use
of
futures
contracts
involves
the
risk
of
an
imperfect
correlation
in
the
movements
in
the
price
of
futures
contracts
and
interest
rates,
foreign
currency
exchange
rates
or
underlying
assets.
5.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES
Investment
Advisory:
The
Trust,
on
behalf
of
the
Fund,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Fund’s
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
(“BlackRock”),
to
provide
investment
advisory
services.
The
Manager
is
responsible
for
the
management
of the
Fund’s
portfolio
and
provides
the
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
at
an
annual
rate
equal
to
the
following
percentages
of
the
average
daily
value
of
the
Fund’s
net
assets:
Administration:
The
Trust,
on
behalf
of
the
Fund,
entered
into
an
Administration
Agreement
with
the
Manager,
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
to
provide
administrative
services.
For
these
services,
the
Manager
receives
an
administration
fee
computed
daily
and
payable
monthly,
based
on
a
percentage
of
the
average
daily
net
assets
of
the
Fund.
The
administration
fee,
which
is
shown
as
administration
in
the
Statement
of
Operations,
is
paid
at
the
annual
rates
below.
In
addition,
the
Manager
charges
each
of
the
share
classes
an
administration
fee,
which
is
shown
as
administration —
class
specific
in
the
Statement
of
Operations,
at
an
annual
rate
of
0.02% of
the
average
daily
net
assets
of
each
respective
class.
For
the
year
ended
October
31,
2024,
the
Fund
paid
the
following
to
the
Manager
in
return
for
these
services,
which
are
included
in
administration —
class
specific
in
the
Statement
of
Operations:
Transfer
Agent:
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
servicing
of
underlying
investor
accounts.
For
these
services,
these
entities
receive
an
asset-based
fee
or
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets.
For
the
year
ended
October
31,
2024
,
the
Fund
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
The
Manager
maintains
a
call
center
that
is
responsible
for
providing
certain
shareholder
services
to
the
Fund.
Shareholder
services
include
responding
to
inquiries
and
processing
purchases
and
sales
based
upon
instructions
from
shareholders.
For
the year
ended
October
31,
2024,
the
Fund
reimbursed
the
Manager
the
following
amounts
for
costs
incurred
in
running
the
call
center,
which
are
included
in
transfer
agent
—
class
specific
in
the
Statement
of
Operations:
For
the
year ended
October
31,
2024,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Expense
Limitations,
Waivers,
Reimbursements
and
Recoupments:
The
Manager
contractually
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
“affiliated
money
market
fund
waiver”)
through
June
30,
2025.
The
contractual
agreement
may
be
terminated
upon
90
days’
notice
by
a
majority
of
the
trustees
who
are
not
“interested
persons”
of
the
Trust,
as
defined
in
the
1940
Act
(“Independent
Trustees”),
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
The
amount
of
waivers
and/or
reimbursements
of
fees
and
expenses
made
pursuant
to
the
expense
limitation
described
below
will
be
reduced
by
the
amount
of
the
affiliated
money
market
fund
waiver.
This
amount
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
For
the
year
ended
October
31,
2024,
the
amount
waived
was
$148.
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
billion
.........................................................................................................
0.75%
$1
billion
-
$3
billion
.....................................................................................................
0.71
Greater
than
$3
billion
...................................................................................................
0.68
Average
Daily
Net
Assets
Administration
Fees
First
$500
million
......................................................................................................
0.0425%
$500
million
-
$1
billion
..................................................................................................
0.0400
$1
billion
-
$2
billion
....................................................................................................
0.0375
$2
billion
-
$4
billion
....................................................................................................
0.0350
$4
billion
-
$13
billion
...................................................................................................
0.0325
Greater
than
$13
billion
..................................................................................................
0.0300
Institutional
Class
K
Total
Administration
fees
-
class
specific
....................................................................
$
1,517
$
1,353
$
2,870
Institutional
Class
K
Total
Reimbursed
Amount
..............................................................................
$
214
$
64
$
278
Institutional
Class
K
Total
Transfer
agent
fees
-
class
specific
....................................................................
$
2,713
$
382
$
3,095
Notes
to
Financial
Statements
(continued)
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of
the
Fund’s
assets
invested
in
affiliated
equity
and
fixed-income mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
June
30,
2025.
The
contractual
agreement
may
be
terminated
upon
90
days’
notice
by
a
majority
of
the
Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
For
the
year
ended
October
31,
2024,
there
were
no
fees
waived
and/or
reimbursed
by
the
Manager
pursuant
to
this
arrangement.
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
(“expense
limitation”).
The
expense
limitations
as
a
percentage
of
average
daily
net
assets
are
as
follows:
The
Manager
has
agreed
not
to
reduce
or
discontinue
the
contractual
expense
limitations
through
June
30,
2025,
unless
approved
by
the
Board,
including
a
majority
of
the Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of the
Fund.
For
the
year ended
October
31,
2024,
the
Manager
waived
and/or
reimbursed
investment
advisory
fees
of
$287,325 which
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
The Fund
also
had
a
waiver
of administration
fees,
which is
included
in
Administration
fees
waived
in
the
Statement
of
Operations.
For
the year
ended
October
31,
2024,
the
amount
was $6,097.
In
addition,
these
amounts
waived
and/or
reimbursed
by
the
Manager are
included
in administration
fees
waived
by
the
Manager
—
class
specific
and
transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific,
respectively,
in
the
Statement
of
Operations.
For
the
year ended
October
31,
2024,
class
specific
expense
waivers
and/or
reimbursements are as
follows:
With
respect
to
the
contractual
expense
limitation,
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
and/or
reimbursement
from
the
Manager,
are
less
than
the
current
expense
limitation
for
that
share
class,
the
Manager
is
entitled
to
be
reimbursed
by
such
share
class
up
to
the
lesser
of:
(a)
the
amount
of
fees
waived
and/or
expenses
reimbursed
during
those
prior
two
fiscal
years
under
the
agreement
and
(b)
an
amount
not
to
exceed
either
the
current
expense
limitation
of
that
share
class
or
the
expense
limitation
of
the
share
class
in
effect
at
the
time
that
the
share
class
received
the
applicable
waiver
and/or
reimbursement,
provided
that:
(1)
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
adviser
or
administrator.
This
repayment
applies
only
to
the
contractual
expense
limitation
on
net
expenses
and
does
not
apply
to
the
contractual
investment
advisory
fee
waiver
described
above
or
any
voluntary
waivers
that
may
be
in
effect
from
time
to
time.
Effective
December
27,
2025,
the
repayment
arrangement
between
the
Fund
and
the
Manager
pursuant
to
which
such
Fund
may
be
required
to
repay
amounts
waived
and/or
reimbursed
under
the
Fund’s
contractual
caps
on
net
expenses will
be terminated.
As
of October
31,
2024,
the
fund
level
and
class
specific
waivers
and/or
reimbursements
subject
to
possible
future
recoupment
under
the
expense
limitation
agreement were
as
follows:
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,
2024:
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
“Order”)
from
the
U.S.
Securities
and
Exchange
Commission
(“SEC”),
the
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
“Interfund
Lending
Program”),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by
the
Fund’s
investment
policies
and
restrictions.
The
Fund
is
currently
permitted
to
borrow
and
lend
under
the
Interfund
Lending
Program.
A
lending
BlackRock
fund
may
lend
in
aggregate
up
to
15%
of
its
net
assets
but
may
not
lend
more
than
5%
of
its
net
assets
to
any
one
borrowing
fund
through
the
Interfund
Lending
Program.
A
borrowing
BlackRock
fund
may
not
borrow
through
the
Interfund
Lending
Program
or
from
any
other
source
more
than
33
1/3%
of
its
total
assets
(or
any
lower
threshold
provided
for
by
the fund’s
investment
restrictions).
If
a
borrowing
BlackRock
fund’s
total
outstanding
borrowings
exceed
10%
of
its
total
assets,
each
of
its
outstanding
interfund
loans
will
be
subject
to
collateralization
of
at
least
102%
of
the
outstanding
principal
value
of
the
loan.
All
interfund
loans
are
for
temporary
or
emergency
Institutional
Class
K
Expense
Limitations
..................................................................................
0
.99
%
0
.94
%
Share
Class
Administration
Fees
Waived
by
the
Manager
—
Class
Specific
Transfer
Agent
Fees
Waived
and/or
Reimbursed
by
the
Manager
—
Class
Specific
Institutional
....................................................................................
$
519
$
166
Class
K
......................................................................................
1,353
382
$
1,872
$
548
Expiring
October
31,
Fund
Level/Share
Class
2025
2026
Fund
Level
........................................................................................
$
314,742
$
293,422
Institutional
........................................................................................
5,015
685
Class
K
..........................................................................................
1,715
1,735
Fund
Level
...............................................................................................................
$
267,062
Institutional
...............................................................................................................
7,001
Class
K
.................................................................................................................
2,589
Notes
to
Financial
Statements
(continued)
Notes
to
Financial
Statements
purposes
and
the
interest
rate
to
be
charged
will
be
the
average
of
the
highest
current
overnight
repurchase
agreement
rate
available
to
a
lending
fund
and
the
bank
loan
rate,
as
calculated
according
to
a
formula
established
by
the
Board.
During the year
ended
October
31,
2024,
the
Fund
did
not
participate
in
the
Interfund
Lending
Program.
Trustees
and
Officers:
Certain
trustees
and/or
officers
of
the
Trust
are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Fund
reimburses
the
Manager
for
a
portion
of
the
compensation
paid
to
the
Fund’s
Chief
Compliance
Officer,
which
is
included
in
Trustees
and
Officer
in
the
Statement
of
Operations.
6.
PURCHASES
AND
SALES
For
the year
ended
October
31,
2024,
purchases
and
sales
of
investments, excluding
short-term
securities, were $22,402,855
and
$21,411,145,
respectively.
7.
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
U.S.
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
generally
remains
open
for
a
period
of
three
years
after
they
are
filed.
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
October
31,
2024,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Fund’s
financial
statements.
Management’s
analysis
is
based
on
the
tax
laws
and
judicial
and
administrative
interpretations
thereof
in
effect
as
of
date
of
these
financial
statements,
all
of
which
are
subject
to
change,
possibly
with
retroactive
effect
which
may
impact
the
Fund's
NAV.
The
tax
character
of
distributions
paid
was
as
follows:
As
of
October
31,
2024,
the
tax
components
of
accumulated earnings
(loss) were
as
follows:
(a)
Amounts
available
to
offset
future
realized
capital
gains.
(b)
The
difference
between
book-basis
and
tax-basis
net
unrealized
gains
(losses)
was
attributable
primarily
to
the
tax
deferral
of
losses
on
wash
sales
and
the
realization
for
tax
purposes
of
unrealized
gains
on
investments
in
passive
foreign
investment
companies.
As
of
October
31,
2024, gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows:
8.
BANK
BORROWINGS
The
Trust,
on
behalf
of
the
Fund,
along
with
certain
other
funds
managed
by
the
Manager
and
its
affiliates
(“Participating
Funds”), is
party
to
a
364-day,
$2.40
billion
credit
agreement
with
a
group
of
lenders.
Under
this
agreement,
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
$1.75
billion
at
any
time
outstanding,
subject
to
asset
coverage
and
other
limitations
as
specified
in
the
agreement.
The
credit
agreement
has
the
following
terms:
a
fee
of
0.10%
per
annum
on
unused
commitment
amounts
and
interest
at
a
rate
equal
to
the
higher
of
(a)
Overnight
Bank
Funding
Rate
(“OBFR”)
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.80%
per
annum,
(b)
the
Fed
Funds
rate
(but,
in
any
event,
not
less
than
0.00%)
in
effect
from
time
to
time
plus
0.80%
per
annum
on
amounts
borrowed
or
(c)
the
sum
of
(x)
Daily
Simple
Secured
Overnight
Financing
Rate
(“SOFR”)
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.10%
and
(y)
0.80%
per
annum. The
agreement
expires
in
April
2025
unless
extended
or
renewed.
Prior
to
April
11,
2024,
the
aggregate
commitment
amount
was
$2.50
billion.
These
fees
were
allocated
among
such
funds
based
upon
portions
of
the
aggregate
commitment
available
to
them
and
relative
net
assets
of
Participating
Funds.
During
the
year ended
October
31,
2024,
the
Fund
did
not
borrow
under
the
credit
agreement.
Fund
Name
Year
Ended
10/31/24
Year
Ended
10/31/23
BlackRock
China
A
Opportunities
Fund
Ordinary
income
......................................................................................
$
278,803
$
205,235
Fund
Name
Undistributed
Ordinary
Income
Non-Expiring
Capital
Loss
Carryforwards
(a)
Net
Unrealized
Gains
(Losses)
(b)
Total
BlackRock
China
A
Opportunities
Fund
........................................
$
338,117
$
(
1,975,018
)
$
1,906,393
$
269,492
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
BlackRock
China
A
Opportunities
Fund
...................................
$
15,429,904
$
2,157,007
$
(
250,614
)
$
1,906,393
Notes
to
Financial
Statements
(continued)
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
9.
PRINCIPAL
RISKS
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Fund
and its
investments.
The
Fund’s
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject.
Market
Risk:
The
Fund
invests
in
A-shares
(i.e.,
equity
securities
of
companies
based
in
the
People’s
Republic
of
China
(“China”
or
“PRC”)
that
trade
on
the
Shanghai
Stock
Exchange
and
Shenzhen
Stock
Exchange)
primarily
through
the
Shanghai-Hong
Kong
Stock
Connect
program
or
the
Shenzhen-Hong
Kong
Stock
Connect
program
(together,
“Stock
Connect”).
Investing
in
A-shares
through
Stock
Connect
is
subject
to
trading,
clearance
and
settlement
procedures,
which
could
pose
risks
to
the
Fund.
Trading
through
Stock
Connect
is
subject
to
a
daily
quota,
which
limits
the
maximum
net
purchases
under
Stock
Connect
each
day.
The
daily
quota
may
restrict
the
Fund’s
ability
to
invest
in
A-shares
on
a
timely
basis
and
could
affect
the
Fund’s
ability
to
effectively
pursue
its
investment
strategy.
Additionally,
the
Fund
may
be
subject
to
the
risk
of
price
fluctuations
on
days
when
the
Chinese
markets
are
open,
but
Stock
Connect
is
not
trading.
The
A-shares
market
has
a
higher
propensity
for
trading
suspensions
than
many
other
global
equity
markets.
Valuation
Risk:
The
market
values
of
equities,
such
as
common
stocks
and
preferred
securities
or
equity
related
investments,
such
as
futures
and
options,
may
decline
due
to
general
market
conditions
which
are
not
specifically
related
to
a
particular
company.
They
may
also
decline
due
to
factors
which
affect
a
particular
industry
or
industries. The
Fund
may
invest
in
illiquid
investments.
An
illiquid
investment
is
any
investment
that the
Fund
reasonably
expects
cannot
be
sold
or
disposed
of
in
current
market
conditions
in
seven
calendar
days
or
less
without
the
sale
or
disposition
significantly
changing
the
market
value
of
the
investment. The
Fund
may
experience
difficulty
in
selling
illiquid
investments
in
a
timely
manner
at
the
price
that it
believes
the
investments
are
worth.
Prices
may
fluctuate
widely
over
short
or
extended
periods
in
response
to
company,
market
or
economic
news.
Markets
also
tend
to
move
in
cycles,
with
periods
of
rising
and
falling
prices.
This
volatility
may
cause
the
Fund’s
NAV
to
experience
significant
increases
or
decreases
over
short
periods
of
time.
If
there
is
a
general
decline
in
the
securities
and
other
markets,
the
NAV
of the
Fund
may
lose
value,
regardless
of
the
individual
results
of
the
securities
and
other
instruments
in
which the
Fund
invests. The
Fund’s
ability
to
value
its
investments
may
also
be
impacted
by
technological
issues
and/or
errors
by
pricing
services
or
other
third-party
service
providers.
Counterparty
Credit
Risk:
The
Fund
may
be
exposed
to
counterparty
credit
risk,
or
the
risk
that
an
entity
may
fail
to
or
be
unable
to
perform
on
its
commitments
related
to
unsettled
or
open
transactions,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Fund
manages
counterparty
credit
risk
by
entering
into
transactions
only
with
counterparties
that
the
Manager
believes
have
the
financial
resources
to
honor
their
obligations
and
by
monitoring
the
financial
stability
of
those
counterparties.
Financial
assets,
which
potentially
expose
the
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
approximately
their
value
recorded
in
the
Statement
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Fund.
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.
With
exchange-traded
futures,
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).
Additionally,
credit
risk
exists
in exchange-traded
futures 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.
Geographic/Asset
Class
Risk:
A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund’s
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
the
Fund’s
portfolio
are
disclosed
in
its Schedule
of
Investments.
The
Fund
invests
a
substantial
amount
of
its
assets
in
issuers
located
in
a
single
country
or
a
limited
number
of
countries.
When a
fund
concentrates
its
investments
in
this
manner,
it
assumes
the
risk
that
economic,
regulatory,
political
and
social
conditions
in
those
countries
may
have
a
significant
impact
on
their
investment
performance
and
could
affect
the
income
from,
or
the
value
or
liquidity
of,
the
Fund's
portfolio.
Unanticipated
or
sudden
political
or
social
developments
may
cause
uncertainty
in
the
markets
and
as
a
result
adversely
affect
the
Fund’s
investments.
Foreign
issuers
may
not
be
subject
to
the
same
uniform
accounting,
auditing
and
financial
reporting
standards
and
practices
as
used
in
the
United
States.
Foreign
securities
markets
may
also
be
more
volatile
and
less
liquid
than
U.S.
securities
and
may
be
less
subject
to
governmental
supervision
not
typically
associated
with
investing
in
U.S.
securities.
Investment
percentages
in
specific
countries
are
presented
in
the
Schedule
of
Investments.
The
Fund
invests
a
significant
portion
of
its
assets
in
securities
of
issuers
located
in
Asia
or
with
significant
exposure
to
Asian
issuers
or
countries.
The
Asian
financial
markets
have
recently
experienced
volatility
and
adverse
trends
due
to
concerns
in
several
Asian
countries
regarding
monetary
policy,
government
intervention
in
the
markets,
rising
government
debt
levels
or
economic
downturns.
These
events
may
spread
to
other
countries
in
Asia
and
may
affect
the
value
and
liquidity
of
certain
of
the
Fund's
investments.
The
Fund
invests
a
significant
portion
of
its
assets
in
securities
of
issuers
located
in
China
or
with
significant
exposure
to
Chinese
issuers. Investments
in
Chinese
securities,
including
certain
Hong
Kong-listed
securities,
involve
risks
specific
to
China.
China
may
be
subject
to
considerable
degrees
of
economic,
political
and
social
instability
and
demonstrates
significantly
higher
volatility
from
time
to
time
in
comparison
to
developed
markets.
Chinese
markets
generally
continue
to
experience
inefficiency,
volatility
and
pricing
anomalies
resulting
from
governmental
influence,
a
lack
of
publicly
available
information
and/or
political
and
social
instability.
Internal
social
unrest
or
confrontations
with
other
neighboring
countries
may
disrupt
economic
development
in
China
and
result
in
a
greater
risk
of
currency
fluctuations,
currency
non-convertibility,
interest
rate
fluctuations
and
higher
rates
of
inflation.
Incidents
involving
China’s
or
the
region’s
security
may
cause
uncertainty
in
Chinese
markets
and
may
adversely
affect
the
Chinese
economy
and
the
Fund’s
investments.
Reduction
in
spending
on
Chinese
products
and
services,
supply
chain
diversification,
institution
of
tariffs,
sanctions
or
other
trade
Notes
to
Financial
Statements
(continued)
Notes
to
Financial
Statements
barriers,
or
a
downturn
in
any
of
the
economies
of
China’s
key
trading
partners
may
have
an
adverse
impact
on
the
Chinese
economy. In
addition,
measures
may
be
taken
to
limit
the
flow
of
capital
and/or
sanctions
may
be
imposed,
which
could
prohibit
or
restrict
the
ability
to
own
or
transfer
fund
assets
and
may
also
include
retaliatory
actions,
such
as
seizure
of
fund
assets.
Significant
Shareholder
Redemption
Risk:
Certain
shareholders
may
own
or
manage
a
substantial
amount
of
fund
shares
and/or
hold
their
fund
investments
for
a
limited
period
of
time.
Large
redemptions
of
fund
shares
by
these
shareholders
may
force
a
fund
to
sell
portfolio
securities,
which
may
negatively
impact
the
fund’s
NAV,
increase
the
fund’s
brokerage
costs,
and/or
accelerate
the
realization
of
taxable
income/gains
and
cause
the
fund
to
make
additional
taxable
distributions
to
shareholders.
10.
CAPITAL
SHARE
TRANSACTIONS
Transactions
in
capital
shares
for
each
class
were
as
follows:
As
of
October
31,
2024,
shares
owned
by
BlackRock
Financial
Management,
Inc.,
an
affiliate
of
the
Fund,
were
as
follows:
11.
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.
Year
Ended
10/31/24
Year
Ended
10/31/23
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
BlackRock
China
A
Opportunities
Fund
Institutional
Shares
sold
.............................................
62,678
$
794,289
320,350
$
4,411,049
Shares
issued
in
reinvestment
of
distributions
........................
2,923
33,346
5,355
73,952
Shares
redeemed
.........................................
(
71,540
)
(
837,769
)
(
700,418
)
(
9,150,412
)
(
5,939
)
$
(
10,134
)
(
374,713
)
$
(
4,665,411
)
Class
K
Shares
sold
.............................................
116,376
$
1,468,867
13,556
$
176,280
Shares
issued
in
reinvestment
of
distributions
........................
836
9,532
368
5,076
Shares
redeemed
.........................................
(
33,074
)
(
410,961
)
(
5,965
)
(
76,887
)
84,138
$
1,067,438
7,959
$
104,469
78,199
$
1,057,304
(
366,754
)
$
(
4,560,942
)
Institutional
.......................................................................................................
500,000
Class
K
.........................................................................................................
500,000
Report
of
Independent
Registered
Public
Accounting
Firm
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
To
the
Shareholders
of
BlackRock
China
A
Opportunities
Fund
and
the
Board
of
Trustees
of
BlackRock
Funds
SM
:
Opinion
on
the
Financial
Statements
and
Financial
Highlights
We
have
audited
the
accompanying
statement
of
assets
and
liabilities
of
BlackRock
China
A
Opportunities
Fund
of
BlackRock
Funds
SM
(the
“Fund”),
including
the
schedule
of
investments,
as
of
October
31,
2024,
the
related
statement
of
operations
for
the
year
then
ended,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
the
financial
highlights
for
each
of
the
five
years
in
the
period
then
ended,
and
the
related
notes.
In
our
opinion,
the
financial
statements
and
financial
highlights
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
October
31,
2024,
and
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
then
ended,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
and
financial
highlights
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
and
financial
highlights
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
and
financial
highlights
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
The
Fund
is
not
required
to
have,
nor
were
we
engaged
to
perform,
an
audit
of
its
internal
control
over
financial
reporting.
As
part
of
our
audits
we
are
required
to
obtain
an
understanding
of
internal
control
over
financial
reporting
but
not
for
the
purpose
of
expressing
an
opinion
on
the
effectiveness
of
the
Fund’s
internal
control
over
financial
reporting.
Accordingly,
we
express
no
such
opinion.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements
and
financial
highlights,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements
and
financial
highlights.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements
and
financial
highlights.
Our
procedures
included
confirmation
of
securities
owned
as
of
October
31,
2024,
by
correspondence
with
custodians
or
counterparties;
when
replies
were
not
received,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
Deloitte
&
Touche
LLP
Boston,
Massachusetts
December
20,
2024
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
1992.
Important
Tax
Information
(unaudited)
The
following
amount,
or maximum
amount
allowable
by
law, is
hereby
designated
as
qualified
dividend
income
for
individuals
for
the
fiscal
year
ended
October
31,
2024
:
The
Fund
intends
to
pass
through
to
its
shareholders
the
following
amount,
or
maximum
amount
allowable
by
law,
of
foreign
source
income
earned
and
foreign
taxes
paid
for
the
fiscal
year
ended
October
31,
2024
:
The
Fund
hereby
designates
the
following
amount,
or
maximum
amount
allowable
by
law,
of
distributions
from
direct
federal
obligation
interest
for
the
fiscal
year
ended
October
31,
2024:
The
law
varies
in
each
state
as
to
whether
and
what
percent
of
ordinary
income
dividends
attributable
to
federal
obligations
is
exempt
from
state
income
tax.
Shareholders
are
advised
to
check
with
their
tax
advisers
to
determine
if
any
portion
of
the
dividends
received
is
exempt
from
state
income
tax.
The
Fund
hereby
designates
the
following
amount,
or
maximum
amount
allowable
by
law,
as
interest
income
eligible
to
be
treated
as
a
Section
163(j)
interest
dividend
for
the
fiscal
year
ended
October
31,
2024:
The
Fund
hereby
designates
the
following
amount,
or
maximum
amount
allowable
by
law,
as
interest-related
dividends
eligible
for
exemption
from
U.S.
withholding
tax
for
nonresident
aliens
and
foreign
corporations
for
the
fiscal
year
ended
October
31,
2024:
Fund
Name
Qualified
Dividend
Income
BlackRock
China
A
Opportunities
Fund
....................................................................................
$
439,142
Fund
Name
Foreign
Source
Income
Earned
Foreign
Taxes
Paid
BlackRock
China
A
Opportunities
Fund
.................................................................
$
345,377
$
46,982
Fund
Name
Federal
Obligation
Interest
BlackRock
China
A
Opportunities
Fund
....................................................................................
$
1,153
Fund
Name
Interest
Dividends
BlackRock
China
A
Opportunities
Fund
....................................................................................
$
6,415
Fund
Name
Interest-Related
Dividends
BlackRock
China
A
Opportunities
Fund
....................................................................................
$
7,356
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
Changes
in
and
Disagreements
with
Accountants
Not
applicable.
Proxy
Results
Not
applicable.
Remuneration
Paid
to
Trustees,
Officers,
and
Others
Compensation
to
the
independent
directors/trustees
of
the
Trust
is
paid
by
the
Trust,
on
behalf
of
the
Fund.
General
Information
Quarterly
performance,
semi-annual
and
annual
reports,
current
net
asset
value
and
other
information
regarding
the
Fund
may
be
found
on
BlackRock’s
website,
which
can
be
accessed
at
blackrock.com
.
Any
reference
to
BlackRock’s
website
in
this
report
is
intended
to
allow
investors
public
access
to
information
regarding
the
Fund
and
does
not,
and
is
not
intended
to,
incorporate
BlackRock’s
website
in
this
report.
Electronic
Delivery
Shareholders
can
sign
up
for
e-mail
notifications
of
quarterly
statements,
annual
and
semi-annual
shareholder
reports
and
prospectuses
by
enrolling
in
the
electronic
delivery
program.
To
enroll
in
electronic
delivery:
Shareholders
Who
Hold
Accounts
with
Investment
Advisors,
Banks
or
Brokerages:
Please
contact
your
financial
advisor.
Please
note
that
not
all
investment
advisors,
banks
or
brokerages
may
offer
this
service.
Shareholders
Who
Hold
Accounts
Directly
with
BlackRock:
1.
Access
the
BlackRock
website
at
blackrock.com
2.
Select
"Access
Your
Account"
3.
Next,
select
"eDelivery"
in
the
"Related
Resources"
box
and
follow
the
sign-up
instructions.
BlackRock’s
Mutual
Fund
Family
BlackRock
offers
a
diverse
lineup
of
open-end
mutual
funds
crossing
all
investment
styles
and
managed
by
experts
in
equity,
fixed-income
and
tax-exempt
investing.
Visit
blackrock.com
for
more
information.
Shareholder
Privileges
Account
Information
Call
us
at
(800)
537-4942
from
8:00
AM
to
6:00
PM
ET
on
any
business
day
to
get
information
about
your
account
balances,
recent
transactions
and
share
prices.
You
can
also
visit
blackrock.com
for
more
information.
Automatic
Investment
Plans
Investor
class
shareholders
who
want
to
invest
regularly
can
arrange
to
have
$50
or
more
automatically
deducted
from
their
checking
or
savings
account
and
invested
in
any
of
the
BlackRock
funds.
Systematic
Withdrawal
Plans
Investor
class
shareholders
can
establish
a
systematic
withdrawal
plan
and
receive
periodic
payments
of
$50
or
more
from
their
BlackRock
funds,
as
long
as
their
account
balance
is
at
least
$10,000.
Retirement
Plans
Shareholders
may
make
investments
in
conjunction
with
Traditional,
Rollover,
Roth,
Coverdell,
Simple
IRAs,
SEP
IRAs
and
403(b)
Plans.
Additional
Information
(continued)
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Accounting
Agent
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
Transfer
Agent
BNY
Mellon
Investment
Servicing
(US)
Inc.
Wilmington,
DE
19809
Custodian
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
Independent
Registered
Public
Accounting
Firm
Deloitte
&
Touche
LLP
Boston,
MA
02110
Distributor
BlackRock
Investments,
LLC
New
York,
NY
10001
Legal
Counsel
Sidley
Austin
LLP
New
York,
NY
10019
Address
of
the
Trust
100
Bellevue
Parkway
Wilmington,
DE
19809
Disclosure
of
Investment
Advisory
Agreement
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
The
Board
of
Trustees
(the
“Board,”
the
members
of
which
are
referred
to
as
“Board
Members”)
of
BlackRock
Funds
(the
“Trust”)
met
on
April
16,
2024
(the
“April
Meeting”)
and
May
16-17,
2024
(the
“May
Meeting”)
to
consider
the
approval
to
continue
the
investment
advisory
agreement
(the
“Agreement”)
between
the
Trust,
on
behalf
of
BlackRock
China
A
Opportunities
Fund
(the
“Fund”),
and
BlackRock
Advisors,
LLC
(the
“Manager”
or
“BlackRock”),
the
Fund’s
investment
advisor.
The
Approval
Process
Consistent
with
the
requirements
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
the
Board
considers
the
approval
of
the
continuation
of
the
Agreement
for
the
Fund
on
an
annual
basis.
The
Board
members
who
are
not
“interested
persons”
of
the
Trust,
as
defined
in
the
1940
Act,
are
considered
independent
Board
members
(the
“Independent
Board
Members”).
The
Board’s
consideration
entailed
a
year-long
deliberative
process
during
which
the
Board
and
its
committees
assessed
BlackRock’s
various
services
to
the
Fund,
including
through
the
review
of
written
materials
and
oral
presentations,
and
the
review
of
additional
information
provided
in
response
to
requests
from
the
Independent
Board
Members.
The
Board
had
four
quarterly
meetings
per
year,
each
of
which
extended
over
a
two-day
period,
as
well
as
additional
ad
hoc
meetings
and
executive
sessions
throughout
the
year,
as
needed.
The
committees
of
the
Board
similarly
met
throughout
the
year.
The
Board
also
had
an
additional
one-day
meeting
to
consider
specific
information
regarding
the
renewal
of
the
Agreement.
In
considering
the
renewal
of
the
Agreement,
the
Board
assessed,
among
other
things,
the
nature,
extent
and
quality
of
the
services
provided
to
the
Fund
by
BlackRock,
BlackRock’s
personnel
and
affiliates,
including
(as
applicable):
investment
management
services;
accounting
oversight;
administrative
and
shareholder
services;
oversight
of
the
Fund’s
service
providers;
risk
management
and
oversight;
and
legal,
regulatory
and
compliance
services.
Throughout
the
year,
including
during
the
contract
renewal
process,
the
Independent
Board
Members
were
advised
by
independent
legal
counsel,
and
met
with
independent
legal
counsel
in
various
executive
sessions
outside
of
the
presence
of
BlackRock’s
management.
During
the
year,
the
Board,
acting
directly
and
through
its
committees,
considered
information
that
was
relevant
to
its
annual
consideration
of
the
renewal
of
the
Agreement,
including
the
services
and
support
provided
by
BlackRock
to
the
Fund
and
its
shareholders.
BlackRock
also
furnished
additional
information
to
the
Board
in
response
to
specific
questions
from
the
Board.
Among
the
matters
the
Board
considered
were:
(a)
investment
performance
for
one-year,
three-year,
five-year,
and/or
since
inception
periods,
as
applicable,
against
peer
funds,
relevant
benchmarks,
and
other
performance
metrics,
as
applicable,
as
well
as
BlackRock
senior
management’s
and
portfolio
managers’
investment
performance
analyses,
and
the
reasons
for
any
outperformance
or
underperformance
relative
to
its
peers,
benchmarks,
and
other
performance
metrics,
as
applicable;
(b)
fees,
including
advisory,
administration,
if
applicable,
and
other
amounts
paid
to
BlackRock
and
its
affiliates
by
the
Fund
for
services;
(c)
Fund
operating
expenses
and
how
BlackRock
allocates
expenses
to
the
Fund;
(d)
the
resources
devoted
to,
risk
oversight
of,
and
compliance
reports
relating
to,
implementation
of
the
Fund’s
investment
objective,
policies
and
restrictions,
and
meeting
regulatory
requirements;
(e)
BlackRock’s
and
the
Fund’s
adherence
to
applicable
compliance
policies
and
procedures;
(f)
the
nature,
character
and
scope
of
non-investment
management
services
provided
by
BlackRock
and
its
affiliates
and
the
estimated
cost
of
such
services,
as
available;
(g)
BlackRock’s
and
other
service
providers’
internal
controls
and
risk
and
compliance
oversight
mechanisms;
(h)
BlackRock’s
implementation
of
the
proxy
voting
policies
approved
by
the
Board;
(i)
the
use
of
brokerage
commissions
and
execution
quality
of
portfolio
transactions;
(j)
BlackRock’s
implementation
of
the
Fund’s
valuation
and
liquidity
procedures;
(k)
an
analysis
of
management
fees
paid
to
BlackRock
for
products
with
similar
investment
mandates
across
the
open-end
fund,
exchange-traded
fund
(“ETF”),
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable,
and
the
similarities
and
differences
between
these
products
and
the
services
provided
as
compared
to
the
Fund;
(l)
BlackRock’s
compensation
methodology
for
its
investment
professionals
and
the
incentives
and
accountability
it
creates,
along
with
investment
professionals’
investments
in
the
fund(s)
they
manage;
and
(m)
periodic
updates
on
BlackRock’s
business.
Prior
to
and
in
preparation
for
the
April
Meeting,
the
Board
received
and
reviewed
materials
specifically
relating
to
the
renewal
of
the
Agreement.
The
Independent
Board
Members
continuously
engaged
in
a
process
with
their
independent
legal
counsel
and
BlackRock
to
review
the
nature
and
scope
of
the
information
provided
to
the
Board
to
better
assist
its
deliberations.
The
materials
provided
in
connection
with
the
April
Meeting
included,
among
other
things:
(a)
information
independently
compiled
and
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
based
on
either
a
Lipper
classification
or
Morningstar
category,
regarding
the
Fund’s
fees
and
expenses
as
compared
with
a
peer
group
of
funds
as
determined
by
Broadridge
(“Expense
Peers”)
and
the
investment
performance
of
the
Fund
as
compared
with
a
peer
group
of
funds
(“Performance
Peers”);
(b)
information
on
the
composition
of
the
Expense
Peers
and
Performance
Peers
and
a
description
of
Broadridge’s
methodology;
(c)
information
on
the
estimated
profits
realized
by
BlackRock
and
its
affiliates
pursuant
to
the
Agreement
and
a
discussion
of
fall-out
benefits
to
BlackRock
and
its
affiliates;
(d)
a
general
analysis
provided
by
BlackRock
concerning
investment
management
fees
received
in
connection
with
other
types
of
investment
products,
such
as
institutional
accounts,
sub-advised
mutual
funds,
ETFs,
closed-end
funds,
open-end
funds,
and
separately
managed
accounts,
under
similar
investment
mandates,
as
well
as
the
performance
of
such
other
products,
as
applicable;
(e)
a
review
of
non-management
fees;
(f)
the
existence,
impact
and
sharing
of
potential
economies
of
scale,
if
any,
with
the
Fund;
(g)
a
summary
of
aggregate
amounts
paid
by
the
Fund
to
BlackRock;
(h)
sales
and
redemption
data
regarding
the
Fund’s
shares;
and
(i)
various
additional
information
requested
by
the
Board
as
appropriate
regarding
BlackRock's
and
the
Fund's
operations.
At
the
April
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
Agreement
and
the
Independent
Board
Members
presented
BlackRock
with
questions
and
requests
for
additional
information.
BlackRock
responded
to
these
questions
and
requests
with
additional
written
information
in
advance
of
the
May
Meeting,
and
such
responses
were
reviewed
by
the
Board
Members.
At
the
May
Meeting,
the
Board
concluded
its
assessment
of,
among
other
things:
(a)
the
nature,
extent
and
quality
of
the
services
provided
by
BlackRock;
(b)
the
investment
performance
of
the
Fund
as
compared
to
its
Performance
Peers
and
to
other
metrics,
as
applicable;
(c)
the
advisory
fee
and
the
estimated
cost
of
the
services
and
estimated
profits
realized
by
BlackRock
and
its
affiliates
from
their
relationship
with
the
Fund;
(d)
the
Fund’s
fees
and
expenses
compared
to
its
Expense
Peers;
(e)
the
existence
and
sharing
of
potential
economies
of
scale;
(f)
any
fall-out
benefits
to
BlackRock
and
its
affiliates
as
a
result
of
BlackRock’s
relationship
with
the
Fund;
and
(g)
other
factors
deemed
relevant
by
the
Board
Members.
The
Board
also
considered
other
matters
it
deemed
important
to
the
approval
process,
such
as
other
payments
made
to
BlackRock
or
its
affiliates
relating
to
securities
lending
and
cash
management,
and
BlackRock’s
services
related
to
the
valuation
and
pricing
of
Fund
portfolio
holdings.
The
Board
noted
the
willingness
of
BlackRock’s
personnel
to
engage
in
open,
candid
discussions
with
the
Board.
The
Board
evaluated
the
information
available
to
it
on
a
fund-by-fund
basis.
The
following
paragraphs
provide
more
information
about
some
of
the
primary
factors
that
were
relevant
to
the
Board’s
decision.
The
Board
Members
did
not
identify
any
particular
information,
or
any
single
factor
as
determinative,
and
each
Board
Member
may
have
attributed
different
weights
to
the
various
items
and
factors
considered.
Disclosure
of
Investment
Advisory
Agreement
(continued)
Disclosure
of
Investment
Advisory
Agreement
A.
Nature,
Extent
and
Quality
of
the
Services
Provided
by
BlackRock
The
Board,
including
the
Independent
Board
Members,
reviewed
the
nature,
extent
and
quality
of
services
provided
by
BlackRock,
including
the
investment
advisory
services,
and
the
resulting
performance
of
the
Fund.
Throughout
the
year,
the
Board
compared
Fund
performance
to
the
performance
of
a
comparable
group
of
mutual
funds,
relevant
benchmarks,
and
performance
metrics,
as
applicable.
The
Board
met
with
BlackRock’s
senior
management
personnel
responsible
for
investment
activities,
including
the
senior
investment
officers.
The
Board
also
reviewed
the
materials
provided
by
the
Fund’s
portfolio
management
team
discussing
the
Fund’s
performance,
investment
strategies
and
outlook.
The
Board
considered,
among
other
factors,
with
respect
to
BlackRock:
the
experience
of
the
Fund’s
portfolio
management
team;
research
capabilities;
investments
by
portfolio
managers
in
the
funds
they
manage;
portfolio
trading
capabilities;
use
of
technology;
commitment
to
compliance;
credit
analysis
capabilities;
risk
analysis
and
oversight
capabilities;
and
the
approach
to
training
and
retaining
portfolio
managers
and
other
research,
advisory
and
management
personnel.
The
Board
also
considered
BlackRock’s
overall
risk
management
program,
including
the
continued
efforts
of
BlackRock
and
its
affiliates
to
address
cybersecurity
risks
and
the
role
of
BlackRock’s
Risk
&
Quantitative
Analysis
Group.
The
Board
engaged
in
a
review
of
BlackRock’s
compensation
structure
with
respect
to
the
Fund’s
portfolio
management
team
and
BlackRock’s
ability
to
attract
and
retain
high-quality
talent
and
create
performance
incentives.
In
addition
to
investment
advisory
services,
the
Board
considered
the
nature
and
quality
of
the
administrative
and
other
non-investment
advisory
services
provided
to
the
Fund.
BlackRock
and
its
affiliates
provide
the
Fund
with
certain
administrative,
shareholder
and
other
services
(in
addition
to
any
such
services
provided
to
the
Fund
by
third
parties)
and
officers
and
other
personnel
as
are
necessary
for
the
operations
of
the
Fund.
In
particular,
BlackRock
and
its
affiliates
provide
the
Fund
with
administrative
services
including,
among
others:
(i)
responsibility
for
disclosure
documents,
such
as
the
prospectus,
the
summary
prospectus
(as
applicable),
the
statement
of
additional
information
and
periodic
shareholder
reports;
(ii)
oversight
of
daily
accounting
and
pricing;
(iii)
responsibility
for
periodic
filings
with
regulators;
(iv)
overseeing
and
coordinating
the
activities
of
third-party
service
providers
including,
among
others,
the
Fund's
custodian,
fund
accountant,
transfer
agent,
and
auditor;
(v)
organizing
Board
meetings
and
preparing
the
materials
for
such
Board
meetings;
(vi)
providing
legal
and
compliance
support;
(vii)
furnishing
analytical
and
other
support
to
assist
the
Board
in
its
consideration
of
strategic
issues
such
as
the
merger,
consolidation
or
repurposing
of
certain
open-end
funds;
and
(viii)
performing
or
managing
administrative
functions
necessary
for
the
operation
of
the
Fund,
such
as
tax
reporting,
expense
management,
fulfilling
regulatory
filing
requirements,
overseeing
the
Fund’s
distribution
partners,
and
shareholder
call
center
and
other
services.
The
Board
reviewed
the
structure
and
duties
of
BlackRock’s
fund
administration,
shareholder
services,
and
legal
and
compliance
departments
and
considered
BlackRock’s
policies
and
procedures
for
assuring
compliance
with
applicable
laws
and
regulations.
The
Board
considered
the
operation
of
BlackRock’s
business
continuity
plans.
B.
The
Investment
Performance
of
the
Fund
The
Board,
including
the
Independent
Board
Members,
reviewed
and
considered
the
performance
history
of
the
Fund
throughout
the
year
and
at
the
April
Meeting.
In
preparation
for
the
April
Meeting,
the
Board
was
provided
with
reports
independently
prepared
by
Broadridge,
which
included
an
analysis
of
the
Fund’s
performance
as
of
December
31,
2023
as
compared
to
its
Performance
Peers.
Broadridge
ranks
funds
in
quartiles,
ranging
from
first
to
fourth,
where
first
is
the
most
desirable
quartile
position
and
fourth
is
the
least
desirable.
In
connection
with
its
review,
the
Board
received
and
reviewed
information
regarding
the
investment
performance
of
the
Fund
as
compared
to
its
Performance
Peers
and
the
respective
Morningstar
Category
(“Morningstar
Category”).
The
Board
and
its
Performance
Oversight
Committee
regularly
review
and
meet
with
Fund
management
to
discuss
the
performance
of
the
Fund
throughout
the
year.
In
evaluating
performance,
the
Board
focused
particular
attention
on
funds
with
less
favorable
performance
records.
The
Board
also
noted
that
while
it
found
the
data
provided
by
Broadridge
generally
useful,
it
recognized
the
limitations
of
such
data,
including
in
particular,
that
notable
differences
may
exist
between
a
fund
and
its
Performance
Peers
(for
example,
the
investment
objectives
and
strategies).
Further,
the
Board
recognized
that
the
performance
data
reflects
a
snapshot
of
a
period
as
of
a
particular
date
and
that
selecting
a
different
performance
period
could
produce
significantly
different
results.
The
Board
also
acknowledged
that
long-term
performance
could
be
impacted
by
even
one
period
of
significant
outperformance
or
underperformance,
and
that
a
single
investment
theme
could
have
the
ability
to
disproportionately
affect
long-term
performance.
The
Board
noted
that
for
the
one-,
three-
and
five-year
periods
reported,
the
Fund
ranked
in
the
second,
second
and
first
quartiles,
respectively,
against
its
Morningstar
Category.
The
Board
noted
that
BlackRock
believes
that
the
Morningstar
Category
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
C.
Consideration
of
the
Advisory/Management
Fees
and
the
Estimated
Cost
of
the
Services
and
Estimated
Profits
Realized
by
BlackRock
and
its
Affiliates
from
their
Relationship
with
the
Fund
The
Board,
including
the
Independent
Board
Members,
reviewed
the
Fund’s
contractual
management
fee
rate
compared
with
those
of
its
Expense
Peers.
The
contractual
management
fee
rate
represents
a
combination
of
the
advisory
fee
and
any
administrative
fees,
before
taking
into
account
any
reimbursements
or
fee
waivers.
The
Board
also
compared
the
Fund’s
total
expense
ratio,
as
well
as
its
actual
management
fee
rate,
to
those
of
its
Expense
Peers.
The
total
expense
ratio
represents
a
fund’s
total
net
operating
expenses,
including
any
12b-1
or
non-12b-1
service
fees.
The
total
expense
ratio
gives
effect
to
any
expense
reimbursements
or
fee
waivers,
and
the
actual
management
fee
rate
gives
effect
to
any
management
fee
reimbursements
or
waivers.
The
Board
considered
that
the
fee
and
expense
information
in
the
Broadridge
report
for
the
Fund
reflected
information
for
a
specific
period
and
that
historical
asset
levels
and
expenses
may
differ
from
current
levels,
particularly
in
a
period
of
market
volatility.
The
Board
considered
the
services
provided
and
the
fees
charged
by
BlackRock
and
its
affiliates
to
other
types
of
clients
with
similar
investment
mandates,
as
applicable,
including
institutional
accounts
and
sub-advised
mutual
funds
(including
mutual
funds
sponsored
by
third
parties).
The
Board
received
and
reviewed
statements
relating
to
BlackRock’s
financial
condition.
The
Board
reviewed
BlackRock’s
profitability
methodology
and
was
also
provided
with
an
estimated
profitability
analysis
that
detailed
the
revenues
earned
and
the
expenses
incurred
by
BlackRock
for
services
provided
to
the
Fund.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
the
Fund
and
other
funds
the
Board
currently
oversees
for
the
year
ended
December
31,
2023
compared
to
available
aggregate
estimated
profitability
data
provided
for
the
prior
two
years.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
certain
other
U.S.
fund
complexes
managed
by
the
Manager
and/or
its
affiliates.
The
Board
reviewed
BlackRock’s
assumptions
and
methodology
of
allocating
expenses
in
the
estimated
profitability
analysis,
noting
the
inherent
limitations
in
allocating
costs
among
various
advisory
products.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors
Disclosure
of
Investment
Advisory
Agreement
(continued)
2024
BlackRock
Annual
Financial
Statements
and
Additional
Information
including,
among
other
things,
fee
waivers
and
expense
reimbursements
by
the
Manager,
the
types
of
funds
managed,
precision
of
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
the
individual
fund
level
is
difficult.
The
Board
noted
that,
in
general,
individual
fund
or
product
line
profitability
of
other
advisors
is
not
publicly
available.
The
Board
reviewed
BlackRock’s
overall
operating
margin,
in
general,
compared
to
that
of
certain
other
publicly
traded
asset
management
firms.
The
Board
considered
the
differences
between
BlackRock
and
these
other
firms,
including
the
contribution
of
technology
at
BlackRock,
BlackRock’s
expense
management,
and
the
relative
product
mix.
The
Board
considered
whether
BlackRock
has
the
financial
resources
necessary
to
attract
and
retain
high
quality
investment
management
personnel
to
perform
its
obligations
under
the
Agreement
and
to
continue
to
provide
the
high
quality
of
services
that
is
expected
by
the
Board.
The
Board
further
considered
factors
including
but
not
limited
to
BlackRock’s
commitment
of
time
and
resources,
assumption
of
risk,
and
liability
profile
in
servicing
the
Fund,
including
in
contrast
to
what
is
required
of
BlackRock
with
respect
to
other
products
with
similar
investment
mandates
across
the
open-end
fund,
ETF,
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable.
The
Board
noted
that
the
Fund’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
the
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
additionally
noted
that
the
breakpoints
can,
conversely,
adjust
the
advisory
fee
rate
upward
as
the
size
of
the
Fund
decreases
below
certain
contractually
specified
levels.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund’s
total
expenses
as
a
percentage
of
the
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
D.
Economies
of
Scale
The
Board,
including
the
Independent
Board
Members,
considered
the
extent
to
which
any
economies
of
scale
might
benefit
the
Fund
in
a
variety
of
ways
as
the
assets
of
the
Fund
increase.
The
Board
considered
multiple
factors,
including
the
advisory
fee
rate
and
breakpoints,
unitary
fee
structure,
fee
waivers,
and/or
expense
caps,
as
applicable.
The
Board
considered
the
Fund’s
asset
levels
and
whether
the
current
fee
schedule
was
appropriate.
E.
Other
Factors
Deemed
Relevant
by
the
Board
Members
The
Board,
including
the
Independent
Board
Members,
also
took
into
account
other
ancillary
or
“fall-out”
benefits
that
BlackRock
or
its
affiliates
may
derive
from
BlackRock’s
respective
relationships
with
the
Fund,
both
tangible
and
intangible,
such
as
BlackRock’s
ability
to
leverage
its
investment
professionals
who
manage
other
portfolios
and
its
risk
management
personnel,
an
increase
in
BlackRock’s
profile
in
the
investment
advisory
community,
and
the
engagement
of
BlackRock’s
affiliates
as
service
providers
to
the
Fund,
including
for
administrative,
distribution,
securities
lending
and
cash
management
services.
With
respect
to
securities
lending,
during
the
year
the
Board
also
considered
information
provided
by
independent
third-party
consultants
related
to
the
performance
of
each
BlackRock
affiliate
as
securities
lending
agent.
The
Board
also
considered
BlackRock’s
overall
operations
and
its
efforts
to
expand
the
scale
of,
and
improve
the
quality
of,
its
operations.
The
Board
also
noted
that,
subject
to
applicable
law,
BlackRock
may
use
and
benefit
from
third-party
research
obtained
by
soft
dollars
generated
by
certain
registered
fund
transactions
to
assist
in
managing
all
or
a
number
of
its
other
client
accounts.
In
connection
with
its
consideration
of
the
Agreement,
the
Board
also
received
information
regarding
BlackRock’s
brokerage
and
soft
dollar
practices.
The
Board
received
reports
from
BlackRock
which
included
information
on
brokerage
commissions
and
trade
execution
practices
throughout
the
year.
The
Board
noted
the
competitive
nature
of
the
open-end
fund
marketplace,
and
that
shareholders
are
able
to
redeem
their
Fund
shares
if
they
believe
that
the
Fund’s
fees
and
expenses
are
too
high
or
if
they
are
dissatisfied
with
the
performance
of
the
Fund.
Conclusion
At
the
May
Meeting,
in
a
continuation
of
the
discussions
that
occurred
during
the
April
Meeting,
and
as
a
culmination
of
the
Board’s
year-long
deliberative
process,
the
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
the
Agreement
between
the
Manager
and
the
Trust,
on
behalf
of
the
Fund,
for
a
one-year
term
ending
June
30,
2025.
Based
upon
its
evaluation
of
all
of
the
aforementioned
factors
in
their
totality,
as
well
as
other
information,
the
Board,
including
the
Independent
Board
Members,
was
satisfied
that
the
terms
of
the
Agreement
were
fair
and
reasonable
and
in
the
best
interest
of
the
Fund
and
its
shareholders.
In
arriving
at
its
decision
to
approve
the
Agreement,
the
Board
did
not
identify
any
single
factor
or
group
of
factors
as
all-important
or
controlling,
but
considered
all
factors
together,
and
different
Board
Members
may
have
attributed
different
weights
to
the
various
factors
considered.
The
Independent
Board
Members
were
advised
by
independent
legal
counsel
throughout
the
deliberative
process.
Glossary
of
Terms
Used
in
this
Report
Glossary
of
Terms
Used
in
this
Report
Portfolio
Abbreviation
JSC
Joint
Stock
Company
Want
to
know
more?
blackrock.com
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800-537-4942
This
report
is
intended
for
current
holders.
It
is
not
authorized
for
use
as
an
offer
of
sale
or
a
solicitation
of
an
offer
to
buy
shares
of
the
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.
Item 8 – Changes in and Disagreements with Accountants for Open-End Management Investment Companies – See Item 7
Item 9 – Proxy Disclosures for Open-End Management Investment Companies – See Item 7
Item 10 – Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies – See Item 7
Item 11 – Statement Regarding Basis for Approval of Investment Advisory Contract – See Item 7
Item 12 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable
Item 13 – Portfolio Managers of Closed-End Management Investment Companies - Not Applicable
Item 14 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 15 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 16 – 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 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 17 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies –Not Applicable
Item 18 – Recovery of Erroneously Awarded Compensation – Not Applicable
Item 19 – Exhibits attached hereto
(a)(1) Code of Ethics – See Item 2
(a)(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant’s securities are listed – Not Applicable
(a)(3) Section 302 Certifications are attached.
(a)(4) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable
(a)(5) Change in registrant’s independent public accountant – Not Applicable
(b) Section 906 Certifications are attached.
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock FundsSM
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock FundsSM
Date: December 20, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock FundsSM
Date: December 20, 2024
By: /s/ Trent Walker
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock FundsSM
Date: December 20, 2024