0000893818 bf3:C000251817Member bf3:ISharesESGAwareMSCIUSASmallCapETFMember 2024-10-31
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:
Name of Fund:
| BlackRock Funds III |
| BlackRock Diversified Fixed Income Fund |
| BlackRock LifePath® ESG Index 2030 Fund |
| BlackRock LifePath® ESG Index 2035 Fund |
| BlackRock LifePath® ESG Index 2040 Fund |
| BlackRock LifePath® ESG Index 2045 Fund |
| BlackRock LifePath® ESG Index 2050 Fund |
| BlackRock LifePath® ESG Index 2055 Fund |
| BlackRock LifePath® ESG Index 2060 Fund |
| BlackRock LifePath® ESG Index 2065 Fund |
| BlackRock LifePath® ESG Index 2070 Fund |
| BlackRock LifePath® ESG Index Retirement Fund |
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Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds III, 50 Hudson Yards, New York, NY 10001
Registrant's telephone number, including area code:
Date of reporting period:
Item 1 — Report to Stockholders
(a) The Report to Shareholders is attached herewith
BlackRock Diversified Fixed Income Fund
Institutional Shares | BDVIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock Diversified Fixed Income 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 | $25 | 0.24% |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 10.92%.
For the same period, the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The Fund’s benchmark replication strategies made the largest contribution to performance. The U.S. Federal Reserve began cutting interest rates in response to falling inflation, benefiting the Fund’s fixed-income holdings. Among the Fund’s underlying strategies, Core Alpha Bond and Total Return were key contributors.
The Fund used derivatives, including financial futures, swaps, and foreign currency transactions, to manage risk and/or take outright views on equities, interest rates, credit risk and/or currencies. The use of derivatives as opposed to physical securities did not have a material impact on performance.
The Fund’s cash position was 12.1% at the end of the period. The cash position did not have a material impact on performance.
What detracted from performance?
The Fund’s relative-value positions in short- and intermediate-term portions of the yield curve were the largest detractors from performance. There were no notable detractors among the underlying actively managed strategies.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: January 18, 2023 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 10.92 | % | 2.26 | % |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | 2.08 | |
| Key Fund statistics | |
| Net Assets | $960,375,042 |
| Number of Portfolio Holdings | 3,763 |
| Net Investment Advisory Fees | $1,136,108 |
| Portfolio Turnover Rate | 506% |
The Fund commenced operations on January 18, 2023.
Performance shown prior to the Institutional Shares inception date of September 19, 2023 is that of Class K Shares (which have no distribution or service fees) and was restated to reflect Institutional Shares fees.
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?
(as of October 31, 2024)
| Portfolio composition |
| Investment Type | Percent of Total
Investments(a) | |
| U.S. Government Sponsored Agency Securities | 33.8 | % |
| Corporate Bonds | 25.8 | % |
| U.S. Treasury Obligations | 21.0 | % |
| Non-Agency Mortgage-Backed Securities | 10.1 | % |
| Asset-Backed Securities | 6.5 | % |
| Foreign Agency Obligations | 2.4 | % |
| Municipal Bonds | 0.4 | % |
| Common Stocks | — | %(b) |
| Preferred Stocks | — | %(b) |
| Capital Trust | — | %(b) |
| Credit quality allocation |
| Credit Rating(c) | Percent of Total
Investments(a) | |
| AAA/Aaa(e) | 59.3 | % |
| AA/Aa | 2.8 | % |
| A | 11.7 | % |
| BBB/Baa | 14.8 | % |
| BB/Ba | 4.2 | % |
| B | 0.7 | % |
| CCC/Caa | 0.5 | % |
| CC | 0.1 | % |
| C | 0.3 | % |
| D | — | %(b) |
| N/R(d) | 5.6 | % |
| (a) | Excludes short-term securities, short investments and options, if any. |
| (b) | Rounds to less than 0.1%. |
| (c) | For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| (d) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of total investments. |
| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa. |
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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 537-4942.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited 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 Diversified Fixed Income Fund
Institutional Shares | BDVIX
Annual Shareholder Report — October 31, 2024
BDVIX-10/24-AR
BlackRock Diversified Fixed Income Fund
Class K Shares | BDVFX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock Diversified Fixed Income 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 | $15 | 0.14% |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 11.17%.
For the same period, the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The Fund’s benchmark replication strategies made the largest contribution to performance. The U.S. Federal Reserve began cutting interest rates in response to falling inflation, benefiting the Fund’s fixed-income holdings. Among the Fund’s underlying strategies, Core Alpha Bond and Total Return were key contributors.
The Fund used derivatives, including financial futures, swaps, and foreign currency transactions, to manage risk and/or take outright views on equities, interest rates, credit risk and/or currencies. The use of derivatives as opposed to physical securities did not have a material impact on performance.
The Fund’s cash position was 12.1% at the end of the period. The cash position did not have a material impact on performance.
What detracted from performance?
The Fund’s relative-value positions in short- and intermediate-term portions of the yield curve were the largest detractors from performance. There were no notable detractors among the underlying actively managed strategies.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: January 18, 2023 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 11.17 | % | 2.37 | % |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | 2.08 | |
| Key Fund statistics | |
| Net Assets | $960,375,042 |
| Number of Portfolio Holdings | 3,763 |
| Net Investment Advisory Fees | $1,136,108 |
| Portfolio Turnover Rate | 506% |
The Fund commenced operations on January 18, 2023.
On the close of business on September 18, 2023, all of the issued and outstanding shares of the Fund were redesignated as Class K Shares.
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?
(as of October 31, 2024)
| Portfolio composition |
| Investment Type | Percent of Total
Investments(a) | |
| U.S. Government Sponsored Agency Securities | 33.8 | % |
| Corporate Bonds | 25.8 | % |
| U.S. Treasury Obligations | 21.0 | % |
| Non-Agency Mortgage-Backed Securities | 10.1 | % |
| Asset-Backed Securities | 6.5 | % |
| Foreign Agency Obligations | 2.4 | % |
| Municipal Bonds | 0.4 | % |
| Common Stocks | — | %(b) |
| Preferred Stocks | — | %(b) |
| Capital Trust | — | %(b) |
| Credit quality allocation |
| Credit Rating(c) | Percent of Total
Investments(a) | |
| AAA/Aaa(e) | 59.3 | % |
| AA/Aa | 2.8 | % |
| A | 11.7 | % |
| BBB/Baa | 14.8 | % |
| BB/Ba | 4.2 | % |
| B | 0.7 | % |
| CCC/Caa | 0.5 | % |
| CC | 0.1 | % |
| C | 0.3 | % |
| D | — | %(b) |
| N/R(d) | 5.6 | % |
| (a) | Excludes short-term securities, short investments and options, if any. |
| (b) | Rounds to less than 0.1%. |
| (c) | For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| (d) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of October 31, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of total investments. |
| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa. |
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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 537-4942.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited 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 Diversified Fixed Income Fund
Class K Shares | BDVFX
Annual Shareholder Report — October 31, 2024
BDVFX-10/24-AR
BlackRock LifePath® ESG Index 2030 Fund
Institutional Shares | LENIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2030 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) 441‑7762.
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 | $11(a) | 0.10%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 21.83%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 21.83 | % | 5.91 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2030 Fund Custom Benchmark | 22.26 | | 6.09 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $5,995,547 |
| Number of Portfolio Holdings | 11 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 50% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 53.7 | % |
| Fixed-Income Funds | 46.4 | % |
| Money Market Funds | 18.5 | % |
| Liabilities in Excess of Other Assets | (18.6 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware U.S. Aggregate Bond ETF | 39.2 | % |
| iShares ESG Aware MSCI USA ETF | 29.7 | % |
| iShares ESG Aware MSCI EAFE ETF | 9.9 | % |
| iShares TIPS Bond ETF | 7.2 | % |
| iShares ESG Aware MSCI EM ETF | 4.4 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 3.7 | % |
| iShares Developed Real Estate Index Fund, Class K | 2.4 | % |
| iShares MSCI EAFE Small-Cap ETF | 1.6 | % |
| iShares MSCI Canada ETF | 1.2 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 0.8 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2030 Fund
Institutional Shares | LENIX
Annual Shareholder Report — October 31, 2024
LENIX-10/24-AR
BlackRock LifePath® ESG Index 2030 Fund
Investor A Shares | LENAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2030 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) 441‑7762.
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 |
| Investor A Shares | $39(a) | 0.35%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Investor A Shares returned 21.59%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Investor A Shares | 21.59 | % | 5.65 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2030 Fund Custom Benchmark | 22.26 | | 6.09 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $5,995,547 |
| Number of Portfolio Holdings | 11 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 50% |
Average annual total returns reflect reductions for service fees.
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 53.7 | % |
| Fixed-Income Funds | 46.4 | % |
| Money Market Funds | 18.5 | % |
| Liabilities in Excess of Other Assets | (18.6 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware U.S. Aggregate Bond ETF | 39.2 | % |
| iShares ESG Aware MSCI USA ETF | 29.7 | % |
| iShares ESG Aware MSCI EAFE ETF | 9.9 | % |
| iShares TIPS Bond ETF | 7.2 | % |
| iShares ESG Aware MSCI EM ETF | 4.4 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 3.7 | % |
| iShares Developed Real Estate Index Fund, Class K | 2.4 | % |
| iShares MSCI EAFE Small-Cap ETF | 1.6 | % |
| iShares MSCI Canada ETF | 1.2 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 0.8 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2030 Fund
Investor A Shares | LENAX
Annual Shareholder Report — October 31, 2024
LENAX-10/24-AR
BlackRock LifePath® ESG Index 2030 Fund
Class K Shares | LENKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2030 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) 441‑7762.
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 | $6(a) | 0.05%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 21.84%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 21.84 | % | 5.96 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2030 Fund Custom Benchmark | 22.26 | | 6.09 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $5,995,547 |
| Number of Portfolio Holdings | 11 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 50% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 53.7 | % |
| Fixed-Income Funds | 46.4 | % |
| Money Market Funds | 18.5 | % |
| Liabilities in Excess of Other Assets | (18.6 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware U.S. Aggregate Bond ETF | 39.2 | % |
| iShares ESG Aware MSCI USA ETF | 29.7 | % |
| iShares ESG Aware MSCI EAFE ETF | 9.9 | % |
| iShares TIPS Bond ETF | 7.2 | % |
| iShares ESG Aware MSCI EM ETF | 4.4 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 3.7 | % |
| iShares Developed Real Estate Index Fund, Class K | 2.4 | % |
| iShares MSCI EAFE Small-Cap ETF | 1.6 | % |
| iShares MSCI Canada ETF | 1.2 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 0.8 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2030 Fund
Class K Shares | LENKX
Annual Shareholder Report — October 31, 2024
LENKX-10/24-AR
BlackRock LifePath® ESG Index 2035 Fund
Institutional Shares | LEJIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2035 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) 441‑7762.
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 | $10(a) | 0.09%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 24.57%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 24.57 | % | 7.44 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2035 Fund Custom Benchmark | 24.88 | | 7.55 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $4,069,749 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 17% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 65.8 | % |
| Fixed-Income Funds | 34.4 | % |
| Money Market Funds | 19.8 | % |
| Liabilities in Excess of Other Assets | (20.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 36.5 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 28.3 | % |
| iShares ESG Aware MSCI EAFE ETF | 12.1 | % |
| iShares TIPS Bond ETF | 6.1 | % |
| iShares ESG Aware MSCI EM ETF | 5.3 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 4.3 | % |
| iShares Developed Real Estate Index Fund, Class K | 3.1 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.0 | % |
| iShares MSCI Canada ETF | 1.5 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 0.9 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2035 Fund
Institutional Shares | LEJIX
Annual Shareholder Report — October 31, 2024
LEJIX-10/24-AR
BlackRock LifePath® ESG Index 2035 Fund
Investor A Shares | LEJAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2035 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) 441‑7762.
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 |
| Investor A Shares | $38(a) | 0.34%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Investor A Shares returned 24.19%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Investor A Shares | 24.19 | % | 7.17 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2035 Fund Custom Benchmark | 24.88 | | 7.55 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $4,069,749 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 17% |
Average annual total returns reflect reductions for service fees.
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 65.8 | % |
| Fixed-Income Funds | 34.4 | % |
| Money Market Funds | 19.8 | % |
| Liabilities in Excess of Other Assets | (20.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 36.5 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 28.3 | % |
| iShares ESG Aware MSCI EAFE ETF | 12.1 | % |
| iShares TIPS Bond ETF | 6.1 | % |
| iShares ESG Aware MSCI EM ETF | 5.3 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 4.3 | % |
| iShares Developed Real Estate Index Fund, Class K | 3.1 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.0 | % |
| iShares MSCI Canada ETF | 1.5 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 0.9 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2035 Fund
Investor A Shares | LEJAX
Annual Shareholder Report — October 31, 2024
LEJAX-10/24-AR
BlackRock LifePath® ESG Index 2035 Fund
Class K Shares | LEJKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2035 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) 441‑7762.
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 | $4(a) | 0.04%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 24.68%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 24.68 | % | 7.50 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2035 Fund Custom Benchmark | 24.88 | | 7.55 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $4,069,749 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 17% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 65.8 | % |
| Fixed-Income Funds | 34.4 | % |
| Money Market Funds | 19.8 | % |
| Liabilities in Excess of Other Assets | (20.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 36.5 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 28.3 | % |
| iShares ESG Aware MSCI EAFE ETF | 12.1 | % |
| iShares TIPS Bond ETF | 6.1 | % |
| iShares ESG Aware MSCI EM ETF | 5.3 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 4.3 | % |
| iShares Developed Real Estate Index Fund, Class K | 3.1 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.0 | % |
| iShares MSCI Canada ETF | 1.5 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 0.9 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2035 Fund
Class K Shares | LEJKX
Annual Shareholder Report — October 31, 2024
LEJKX-10/24-AR
BlackRock LifePath® ESG Index 2040 Fund
Institutional Shares | LEKIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2040 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) 441‑7762.
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 | $9(a) | 0.08%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 27.24%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 27.24 | % | 8.99 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2040 Fund Custom Benchmark | 27.42 | | 8.90 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $10,152,715 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 55% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 77.0 | % |
| Money Market Funds | 27.2 | % |
| Fixed-Income Funds | 23.0 | % |
| Liabilities in Excess of Other Assets | (27.2 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 42.5 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 18.3 | % |
| iShares ESG Aware MSCI EAFE ETF | 14.3 | % |
| iShares ESG Aware MSCI EM ETF | 6.3 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 5.0 | % |
| iShares TIPS Bond ETF | 4.6 | % |
| iShares Developed Real Estate Index Fund, Class K | 3.7 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.3 | % |
| iShares MSCI Canada ETF | 1.8 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.1 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2040 Fund
Institutional Shares | LEKIX
Annual Shareholder Report — October 31, 2024
LEKIX-10/24-AR
BlackRock LifePath® ESG Index 2040 Fund
Investor A Shares | LEKAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2040 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) 441‑7762.
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 |
| Investor A Shares | $37(a) | 0.33%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Investor A Shares returned 27.01%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Investor A Shares | 27.01 | % | 8.71 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2040 Fund Custom Benchmark | 27.42 | | 8.90 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $10,152,715 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 55% |
Average annual total returns reflect reductions for service fees.
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 77.0 | % |
| Money Market Funds | 27.2 | % |
| Fixed-Income Funds | 23.0 | % |
| Liabilities in Excess of Other Assets | (27.2 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 42.5 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 18.3 | % |
| iShares ESG Aware MSCI EAFE ETF | 14.3 | % |
| iShares ESG Aware MSCI EM ETF | 6.3 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 5.0 | % |
| iShares TIPS Bond ETF | 4.6 | % |
| iShares Developed Real Estate Index Fund, Class K | 3.7 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.3 | % |
| iShares MSCI Canada ETF | 1.8 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.1 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2040 Fund
Investor A Shares | LEKAX
Annual Shareholder Report — October 31, 2024
LEKAX-10/24-AR
BlackRock LifePath® ESG Index 2040 Fund
Class K Shares | LEKKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2040 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) 441‑7762.
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 | $3(a) | 0.03%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 27.26%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 27.26 | % | 9.03 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2040 Fund Custom Benchmark | 27.42 | | 8.90 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $10,152,715 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 55% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 77.0 | % |
| Money Market Funds | 27.2 | % |
| Fixed-Income Funds | 23.0 | % |
| Liabilities in Excess of Other Assets | (27.2 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 42.5 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 18.3 | % |
| iShares ESG Aware MSCI EAFE ETF | 14.3 | % |
| iShares ESG Aware MSCI EM ETF | 6.3 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 5.0 | % |
| iShares TIPS Bond ETF | 4.6 | % |
| iShares Developed Real Estate Index Fund, Class K | 3.7 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.3 | % |
| iShares MSCI Canada ETF | 1.8 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.1 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2040 Fund
Class K Shares | LEKKX
Annual Shareholder Report — October 31, 2024
LEKKX-10/24-AR
BlackRock LifePath® ESG Index 2045 Fund
Institutional Shares | LEHIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2045 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) 441‑7762.
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 | $8(a) | 0.07%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 29.51%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 29.51 | % | 9.97 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2045 Fund Custom Benchmark | 29.79 | | 10.04 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $7,020,455 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 18% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 87.6 | % |
| Money Market Funds | 24.0 | % |
| Fixed-Income Funds | 12.4 | % |
| Liabilities in Excess of Other Assets | (24.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 48.4 | % |
| iShares ESG Aware MSCI EAFE ETF | 16.3 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 9.4 | % |
| iShares ESG Aware MSCI EM ETF | 7.2 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 5.6 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares TIPS Bond ETF | 3.0 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.6 | % |
| iShares MSCI Canada ETF | 2.0 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.2 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2045 Fund
Institutional Shares | LEHIX
Annual Shareholder Report — October 31, 2024
LEHIX-10/24-AR
BlackRock LifePath® ESG Index 2045 Fund
Investor A Shares | LEHAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2045 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) 441‑7762.
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 |
| Investor A Shares | $37(a) | 0.32%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Investor A Shares returned 29.09%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Investor A Shares | 29.09 | % | 9.69 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2045 Fund Custom Benchmark | 29.79 | | 10.04 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $7,020,455 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 18% |
Average annual total returns reflect reductions for service fees.
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 87.6 | % |
| Money Market Funds | 24.0 | % |
| Fixed-Income Funds | 12.4 | % |
| Liabilities in Excess of Other Assets | (24.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 48.4 | % |
| iShares ESG Aware MSCI EAFE ETF | 16.3 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 9.4 | % |
| iShares ESG Aware MSCI EM ETF | 7.2 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 5.6 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares TIPS Bond ETF | 3.0 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.6 | % |
| iShares MSCI Canada ETF | 2.0 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.2 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2045 Fund
Investor A Shares | LEHAX
Annual Shareholder Report — October 31, 2024
LEHAX-10/24-AR
BlackRock LifePath® ESG Index 2045 Fund
Class K Shares | LEHKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2045 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) 441‑7762.
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 | $2(a) | 0.02%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 29.62%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 29.62 | % | 10.04 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2045 Fund Custom Benchmark | 29.79 | | 10.04 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $7,020,455 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 18% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 87.6 | % |
| Money Market Funds | 24.0 | % |
| Fixed-Income Funds | 12.4 | % |
| Liabilities in Excess of Other Assets | (24.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 48.4 | % |
| iShares ESG Aware MSCI EAFE ETF | 16.3 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 9.4 | % |
| iShares ESG Aware MSCI EM ETF | 7.2 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 5.6 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares TIPS Bond ETF | 3.0 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.6 | % |
| iShares MSCI Canada ETF | 2.0 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.2 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2045 Fund
Class K Shares | LEHKX
Annual Shareholder Report — October 31, 2024
LEHKX-10/24-AR
BlackRock LifePath® ESG Index 2050 Fund
Institutional Shares | LEGIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2050 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) 441‑7762.
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 | $7(a) | 0.06%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 31.03%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 31.03 | % | 10.60 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2050 Fund Custom Benchmark | 31.41 | | 10.73 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $7,994,482 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 16% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 95.2 | % |
| Money Market Funds | 26.0 | % |
| Fixed-Income Funds | 4.8 | % |
| Liabilities in Excess of Other Assets | (26.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 52.5 | % |
| iShares ESG Aware MSCI EAFE ETF | 17.9 | % |
| iShares ESG Aware MSCI EM ETF | 7.9 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.1 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 3.5 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.9 | % |
| iShares MSCI Canada ETF | 2.2 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares TIPS Bond ETF | 1.3 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2050 Fund
Institutional Shares | LEGIX
Annual Shareholder Report — October 31, 2024
LEGIX-10/24-AR
BlackRock LifePath® ESG Index 2050 Fund
Investor A Shares | LEBAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2050 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) 441‑7762.
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 |
| Investor A Shares | $36(a) | 0.31%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Investor A Shares returned 30.84%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Investor A Shares | 30.84 | % | 10.34 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2050 Fund Custom Benchmark | 31.41 | | 10.73 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $7,994,482 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 16% |
Average annual total returns reflect reductions for service fees.
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 95.2 | % |
| Money Market Funds | 26.0 | % |
| Fixed-Income Funds | 4.8 | % |
| Liabilities in Excess of Other Assets | (26.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 52.5 | % |
| iShares ESG Aware MSCI EAFE ETF | 17.9 | % |
| iShares ESG Aware MSCI EM ETF | 7.9 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.1 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 3.5 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.9 | % |
| iShares MSCI Canada ETF | 2.2 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares TIPS Bond ETF | 1.3 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2050 Fund
Investor A Shares | LEBAX
Annual Shareholder Report — October 31, 2024
LEBAX-10/24-AR
BlackRock LifePath® ESG Index 2050 Fund
Class K Shares | LEPKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2050 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) 441‑7762.
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 | $1(a) | 0.01%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 31.14%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 31.14 | % | 10.67 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2050 Fund Custom Benchmark | 31.41 | | 10.73 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $7,994,482 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 16% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 95.2 | % |
| Money Market Funds | 26.0 | % |
| Fixed-Income Funds | 4.8 | % |
| Liabilities in Excess of Other Assets | (26.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 52.5 | % |
| iShares ESG Aware MSCI EAFE ETF | 17.9 | % |
| iShares ESG Aware MSCI EM ETF | 7.9 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.1 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 3.5 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.9 | % |
| iShares MSCI Canada ETF | 2.2 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares TIPS Bond ETF | 1.3 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2050 Fund
Class K Shares | LEPKX
Annual Shareholder Report — October 31, 2024
LEPKX-10/24-AR
BlackRock LifePath® ESG Index 2055 Fund
Institutional Shares | LEEIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2055 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) 441‑7762.
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 | $7(a) | 0.06%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 31.80%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 31.80 | % | 10.83 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2055 Fund Custom Benchmark | 32.11 | | 10.95 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $4,819,047 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 13% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 98.6 | % |
| Money Market Funds | 31.4 | % |
| Fixed-Income Funds | 1.5 | % |
| Liabilities in Excess of Other Assets | (31.5 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 54.5 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.6 | % |
| iShares ESG Aware MSCI EM ETF | 8.2 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.4 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.9 | % |
| iShares MSCI Canada ETF | 2.3 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 1.1 | % |
| iShares TIPS Bond ETF | 0.4 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2055 Fund
Institutional Shares | LEEIX
Annual Shareholder Report — October 31, 2024
LEEIX-10/24-AR
BlackRock LifePath® ESG Index 2055 Fund
Investor A Shares | LEVAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2055 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) 441‑7762.
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 |
| Investor A Shares | $36(a) | 0.31%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Investor A Shares returned 31.45%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Investor A Shares | 31.45 | % | 10.56 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2055 Fund Custom Benchmark | 32.11 | | 10.95 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $4,819,047 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 13% |
Average annual total returns reflect reductions for service fees.
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 98.6 | % |
| Money Market Funds | 31.4 | % |
| Fixed-Income Funds | 1.5 | % |
| Liabilities in Excess of Other Assets | (31.5 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 54.5 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.6 | % |
| iShares ESG Aware MSCI EM ETF | 8.2 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.4 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.9 | % |
| iShares MSCI Canada ETF | 2.3 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 1.1 | % |
| iShares TIPS Bond ETF | 0.4 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2055 Fund
Investor A Shares | LEVAX
Annual Shareholder Report — October 31, 2024
LEVAX-10/24-AR
BlackRock LifePath® ESG Index 2055 Fund
Class K Shares | LEVKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2055 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) 441‑7762.
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 | $1(a) | 0.01%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 31.82%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 31.82 | % | 10.88 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2055 Fund Custom Benchmark | 32.11 | | 10.95 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $4,819,047 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 13% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 98.6 | % |
| Money Market Funds | 31.4 | % |
| Fixed-Income Funds | 1.5 | % |
| Liabilities in Excess of Other Assets | (31.5 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 54.5 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.6 | % |
| iShares ESG Aware MSCI EM ETF | 8.2 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.4 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.9 | % |
| iShares MSCI Canada ETF | 2.3 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 1.1 | % |
| iShares TIPS Bond ETF | 0.4 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2055 Fund
Class K Shares | LEVKX
Annual Shareholder Report — October 31, 2024
LEVKX-10/24-AR
BlackRock LifePath® ESG Index 2060 Fund
Institutional Shares | LEZIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2060 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) 441‑7762.
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 | $7(a) | 0.06%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 31.78%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 31.78 | % | 10.83 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2060 Fund Custom Benchmark | 32.13 | | 10.95 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $6,078,123 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 14% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 97.4 | % |
| Money Market Funds | 41.2 | % |
| Fixed-Income Funds | 1.0 | % |
| Liabilities in Excess of Other Assets | (39.6 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 53.8 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.3 | % |
| iShares ESG Aware MSCI EM ETF | 8.1 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.3 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.9 | % |
| iShares MSCI Canada ETF | 2.3 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 0.8 | % |
| iShares TIPS Bond ETF | 0.2 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2060 Fund
Institutional Shares | LEZIX
Annual Shareholder Report — October 31, 2024
LEZIX-10/24-AR
BlackRock LifePath® ESG Index 2060 Fund
Investor A Shares | LEZAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2060 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) 441‑7762.
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 |
| Investor A Shares | $36(a) | 0.31%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Investor A Shares returned 31.52%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Investor A Shares | 31.52 | % | 10.55 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2060 Fund Custom Benchmark | 32.13 | | 10.95 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $6,078,123 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 14% |
Average annual total returns reflect reductions for service fees.
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 97.4 | % |
| Money Market Funds | 41.2 | % |
| Fixed-Income Funds | 1.0 | % |
| Liabilities in Excess of Other Assets | (39.6 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 53.8 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.3 | % |
| iShares ESG Aware MSCI EM ETF | 8.1 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.3 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.9 | % |
| iShares MSCI Canada ETF | 2.3 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 0.8 | % |
| iShares TIPS Bond ETF | 0.2 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2060 Fund
Investor A Shares | LEZAX
Annual Shareholder Report — October 31, 2024
LEZAX-10/24-AR
BlackRock LifePath® ESG Index 2060 Fund
Class K Shares | LEZKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2060 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) 441‑7762.
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 | $1(a) | 0.01%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 31.89%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 31.89 | % | 10.89 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2060 Fund Custom Benchmark | 32.13 | | 10.95 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $6,078,123 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 14% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 97.4 | % |
| Money Market Funds | 41.2 | % |
| Fixed-Income Funds | 1.0 | % |
| Liabilities in Excess of Other Assets | (39.6 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 53.8 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.3 | % |
| iShares ESG Aware MSCI EM ETF | 8.1 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.3 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares MSCI EAFE Small-Cap ETF | 2.9 | % |
| iShares MSCI Canada ETF | 2.3 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 0.8 | % |
| iShares TIPS Bond ETF | 0.2 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2060 Fund
Class K Shares | LEZKX
Annual Shareholder Report — October 31, 2024
LEZKX-10/24-AR
BlackRock LifePath® ESG Index 2065 Fund
Institutional Shares | LEWIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2065 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) 441‑7762.
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 | $7(a) | 0.06%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 31.91%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 31.91 | % | 10.89 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2065 Fund Custom Benchmark | 32.13 | | 10.95 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $4,068,541 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 11% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 99.2 | % |
| Money Market Funds | 34.8 | % |
| Fixed-Income Funds | 1.0 | % |
| Liabilities in Excess of Other Assets | (35.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 54.8 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.7 | % |
| iShares ESG Aware MSCI EM ETF | 8.3 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.4 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares MSCI EAFE Small-Cap ETF | 3.0 | % |
| iShares MSCI Canada ETF | 2.3 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 0.9 | % |
| iShares TIPS Bond ETF | 0.1 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2065 Fund
Institutional Shares | LEWIX
Annual Shareholder Report — October 31, 2024
LEWIX-10/24-AR
BlackRock LifePath® ESG Index 2065 Fund
Investor A Shares | LEWAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2065 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) 441‑7762.
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 |
| Investor A Shares | $36(a) | 0.31%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Investor A Shares returned 31.60%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Investor A Shares | 31.60 | % | 10.62 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2065 Fund Custom Benchmark | 32.13 | | 10.95 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $4,068,541 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 11% |
Average annual total returns reflect reductions for service fees.
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 99.2 | % |
| Money Market Funds | 34.8 | % |
| Fixed-Income Funds | 1.0 | % |
| Liabilities in Excess of Other Assets | (35.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 54.8 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.7 | % |
| iShares ESG Aware MSCI EM ETF | 8.3 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.4 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares MSCI EAFE Small-Cap ETF | 3.0 | % |
| iShares MSCI Canada ETF | 2.3 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 0.9 | % |
| iShares TIPS Bond ETF | 0.1 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2065 Fund
Investor A Shares | LEWAX
Annual Shareholder Report — October 31, 2024
LEWAX-10/24-AR
BlackRock LifePath® ESG Index 2065 Fund
Class K Shares | LEWKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2065 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) 441‑7762.
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 | $1(a) | 0.01%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 31.92%.
For the same period, the MSCI USA Index returned 38.40% and the Bloomberg U.S. Aggregate Bond Index returned 10.55%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 31.92 | % | 10.93 | % |
| MSCI USA Index | 38.40 | | 14.57 | |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| LifePath® ESG Index 2065 Fund Custom Benchmark | 32.13 | | 10.95 | |
| MSCI U.S. Extended ESG Focus Index | 37.98 | | 13.93 | |
| Key Fund statistics | |
| Net Assets | $4,068,541 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 11% |
The Fund has added the MSCI USA Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 99.2 | % |
| Money Market Funds | 34.8 | % |
| Fixed-Income Funds | 1.0 | % |
| Liabilities in Excess of Other Assets | (35.0 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 54.8 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.7 | % |
| iShares ESG Aware MSCI EM ETF | 8.3 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.4 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.3 | % |
| iShares MSCI EAFE Small-Cap ETF | 3.0 | % |
| iShares MSCI Canada ETF | 2.3 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 0.9 | % |
| iShares TIPS Bond ETF | 0.1 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index 2065 Fund
Class K Shares | LEWKX
Annual Shareholder Report — October 31, 2024
LEWKX-10/24-AR
BlackRock LifePath® ESG Index 2070 Fund
Institutional Shares | LEYIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2070 Fund (the “Fund”) for the period of September 24, 2024 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) 441‑7762.
What were the Fund costs for the period ?
(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 | $1(a)(b) | 0.06%(a)(c) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(b) | Institutional Shares commenced operations during the reporting period. Expenses for a full reporting period would be higher than the amount shown. |
(c) | Annualized. |
| Key Fund statistics | |
| Net Assets | $1,958,126 |
| Number of Portfolio Holdings | 10 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 2% |
What did the Fund invest in?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 98.9 | % |
| Fixed-Income Funds | 1.0 | % |
| Money Market Funds | 0.2 | % |
| Liabilities in Excess of Other Assets | (0.1 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 54.7 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.7 | % |
| iShares ESG Aware MSCI EM ETF | 8.2 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.5 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.2 | % |
| iShares MSCI EAFE Small-Cap ETF | 3.0 | % |
| iShares MSCI Canada ETF | 2.2 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 1.0 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
©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 LifePath® ESG Index 2070 Fund
Institutional Shares | LEYIX
Annual Shareholder Report — October 31, 2024
LEYIX-10/24-AR
BlackRock LifePath® ESG Index 2070 Fund
Investor A Shares | LEYAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2070 Fund (the “Fund”) for the period of September 24, 2024 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) 441‑7762.
What were the Fund costs for the period ?
(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 |
| Investor A Shares | $3(a)(b) | 0.30%(a)(c) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(b) | Investor A Shares commenced operations during the reporting period. Expenses for a full reporting period would be higher than the amount shown. |
(c) | Annualized. |
| Key Fund statistics | |
| Net Assets | $1,958,126 |
| Number of Portfolio Holdings | 10 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 2% |
What did the Fund invest in?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 98.9 | % |
| Fixed-Income Funds | 1.0 | % |
| Money Market Funds | 0.2 | % |
| Liabilities in Excess of Other Assets | (0.1 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 54.7 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.7 | % |
| iShares ESG Aware MSCI EM ETF | 8.2 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.5 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.2 | % |
| iShares MSCI EAFE Small-Cap ETF | 3.0 | % |
| iShares MSCI Canada ETF | 2.2 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 1.0 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
©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 LifePath® ESG Index 2070 Fund
Investor A Shares | LEYAX
Annual Shareholder Report — October 31, 2024
LEYAX-10/24-AR
BlackRock LifePath® ESG Index 2070 Fund
Class K Shares | LEYKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index 2070 Fund (the “Fund”) for the period of September 24, 2024 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) 441‑7762.
What were the Fund costs for the period ?
(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 | $0(a)(b)(c) | 0.01%(a)(d) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
(b) | Class K Shares commenced operations during the reporting period. Expenses for a full reporting period would be higher than the amount shown. |
(c) | Rounds to less than $1. |
(d) | Annualized. |
| Key Fund statistics | |
| Net Assets | $1,958,126 |
| Number of Portfolio Holdings | 10 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 2% |
What did the Fund invest in?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Equity Funds | 98.9 | % |
| Fixed-Income Funds | 1.0 | % |
| Money Market Funds | 0.2 | % |
| Liabilities in Excess of Other Assets | (0.1 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware MSCI USA ETF | 54.7 | % |
| iShares ESG Aware MSCI EAFE ETF | 18.7 | % |
| iShares ESG Aware MSCI EM ETF | 8.2 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 6.5 | % |
| iShares Developed Real Estate Index Fund, Class K | 4.2 | % |
| iShares MSCI EAFE Small-Cap ETF | 3.0 | % |
| iShares MSCI Canada ETF | 2.2 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 1.4 | % |
| iShares ESG Aware U.S. Aggregate Bond ETF | 1.0 | % |
| (a) | 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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
©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 LifePath® ESG Index 2070 Fund
Class K Shares | LEYKX
Annual Shareholder Report — October 31, 2024
LEYKX-10/24-AR
BlackRock LifePath® ESG Index Retirement Fund
Institutional Shares | LERIX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index Retirement 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) 441‑7762.
This report describes changes to the Fund that occurred during the reporting period.
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 | $12(a) | 0.11%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Institutional Shares returned 18.55%.
For the same period, the Bloomberg U.S. Aggregate Bond Index returned 10.55% and the MSCI USA Index returned 38.40%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Institutional Shares | 18.55 | % | 3.42 | % |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| MSCI USA Index | 38.40 | | 14.57 | |
| LifePath® ESG Index Retirement Fund Custom Benchmark | 18.84 | | 3.55 | |
| Bloomberg MSCI U.S. Aggregate ESG Focus Index | 10.53 | | (1.84 | ) |
| Key Fund statistics | |
| Net Assets | $7,584,048 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 11% |
The Fund has added the Bloomberg U.S. Aggregate Bond Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Fixed-Income Funds | 60.3 | % |
| Equity Funds | 39.9 | % |
| Money Market Funds | 21.6 | % |
| Liabilities in Excess of Other Assets | (21.8 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware U.S. Aggregate Bond ETF | 52.4 | % |
| iShares ESG Aware MSCI USA ETF | 22.2 | % |
| iShares TIPS Bond ETF | 7.9 | % |
| iShares ESG Aware MSCI EAFE ETF | 7.0 | % |
| iShares ESG Aware MSCI EM ETF | 3.1 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 2.9 | % |
| iShares Developed Real Estate Index Fund, Class K | 2.2 | % |
| iShares MSCI EAFE Small-Cap ETF | 1.1 | % |
| iShares MSCI Canada ETF | 0.9 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 0.5 | % |
| (a) | Excludes short-term securities. |
Material Fund changes
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund’s next prospectus, which we expect to be available approximately 120 days after October 31, 2024 at blackrock.com/fundreports or upon request by contacting us at (800) 441-7762.
On May 16, 2024, the Fund’s Board approved the reorganization of BlackRock LifePath® ESG Index 2025 Fund, with and into the Fund. The reorganization closed on October 7, 2024.
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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index Retirement Fund
Institutional Shares | LERIX
Annual Shareholder Report — October 31, 2024
LERIX-10/24-AR
BlackRock LifePath® ESG Index Retirement Fund
Investor A Shares | LERAX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index Retirement 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) 441‑7762.
This report describes changes to the Fund that occurred during the reporting period.
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 |
| Investor A Shares | $39(a) | 0.36%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Investor A Shares returned 18.30%.
For the same period, the Bloomberg U.S. Aggregate Bond Index returned 10.55% and the MSCI USA Index returned 38.40%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Investor A Shares | 18.30 | % | 3.18 | % |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| MSCI USA Index | 38.40 | | 14.57 | |
| LifePath® ESG Index Retirement Fund Custom Benchmark | 18.84 | | 3.55 | |
| Bloomberg MSCI U.S. Aggregate ESG Focus Index | 10.53 | | (1.84 | ) |
| Key Fund statistics | |
| Net Assets | $7,584,048 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 11% |
Average annual total returns reflect reductions for service fees.
The Fund has added the Bloomberg U.S. Aggregate Bond Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Fixed-Income Funds | 60.3 | % |
| Equity Funds | 39.9 | % |
| Money Market Funds | 21.6 | % |
| Liabilities in Excess of Other Assets | (21.8 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware U.S. Aggregate Bond ETF | 52.4 | % |
| iShares ESG Aware MSCI USA ETF | 22.2 | % |
| iShares TIPS Bond ETF | 7.9 | % |
| iShares ESG Aware MSCI EAFE ETF | 7.0 | % |
| iShares ESG Aware MSCI EM ETF | 3.1 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 2.9 | % |
| iShares Developed Real Estate Index Fund, Class K | 2.2 | % |
| iShares MSCI EAFE Small-Cap ETF | 1.1 | % |
| iShares MSCI Canada ETF | 0.9 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 0.5 | % |
| (a) | Excludes short-term securities. |
Material Fund changes
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund’s next prospectus, which we expect to be available approximately 120 days after October 31, 2024 at blackrock.com/fundreports or upon request by contacting us at (800) 441-7762.
On May 16, 2024, the Fund’s Board approved the reorganization of BlackRock LifePath® ESG Index 2025 Fund, with and into the Fund. The reorganization closed on October 7, 2024.
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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index Retirement Fund
Investor A Shares | LERAX
Annual Shareholder Report — October 31, 2024
LERAX-10/24-AR
BlackRock LifePath® ESG Index Retirement Fund
Class K Shares | LERKX
Annual Shareholder Report — October 31, 2024
This annual shareholder report contains important information about BlackRock LifePath® ESG Index Retirement 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) 441‑7762.
This report describes changes to the Fund that occurred during the reporting period.
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 | $7(a) | 0.06%(a) |
(a) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
How did the Fund perform last year ?
For the reporting period ended October 31, 2024, the Fund’s Class K Shares returned 18.60%.
For the same period, the Bloomberg U.S. Aggregate Bond Index returned 10.55% and the MSCI USA Index returned 38.40%.
What contributed to performance?
The following discussion relates to all vintages of the BlackRock LifePath ESG Index suite. In the vintages farthest from retirement, positive contributions were led by U.S. large-cap equities, followed by developed international equities, emerging market equities, U.S. small-cap equities, global developed real estate, Canadian equities, international small-cap equities, emerging market small-cap equities, U.S. investment grade fixed income and U.S. Treasury inflation-protected securities.
In the vintages near or at retirement, positive contributions were led by U.S. large-cap equities, followed by U.S. investment grade fixed income, developed international equities, U.S. small-cap equities, emerging market equities, U.S. Treasury inflation-protected securities, global developed real estate, Canadian equities, international small-cap equities and emerging market small-cap equities.
What detracted from performance?
All asset classes held within the Fund contributed positively to performance during the reporting period.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: August 18, 2020 through October 31, 2024
Initial investment of $10,000
See “Average annual total returns” for additional information on fund performance.
| Average annual total returns | | | | |
| 1 Year | | Since Fund
Inception | |
| Class K Shares | 18.60 | % | 3.48 | % |
| Bloomberg U.S. Aggregate Bond Index | 10.55 | | (1.84 | ) |
| MSCI USA Index | 38.40 | | 14.57 | |
| LifePath® ESG Index Retirement Fund Custom Benchmark | 18.84 | | 3.55 | |
| Bloomberg MSCI U.S. Aggregate ESG Focus Index | 10.53 | | (1.84 | ) |
| Key Fund statistics | |
| Net Assets | $7,584,048 |
| Number of Portfolio Holdings | 12 |
| Net Investment Advisory Fees | $0 |
| Portfolio Turnover Rate | 11% |
The Fund has added the Bloomberg U.S. Aggregate Bond Index in response to new regulatory requirements.
The Fund commenced operations on August 18, 2020.
The Fund compares its performance to that of a customized weighted index (the “Custom Reference Benchmark”) comprised of the Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. TIPS Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI U.S. Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index, which are representative of the asset classes in which the Fund invests. The weightings of the indices in the Custom Reference Benchmark are adjusted periodically to reflect the investment adviser’s evaluation and adjustment of the Fund’s asset allocation strategy.
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?
(as of October 31, 2024)
| Portfolio composition |
| Asset Type | Percent of
Net Assets | |
| Fixed-Income Funds | 60.3 | % |
| Equity Funds | 39.9 | % |
| Money Market Funds | 21.6 | % |
| Liabilities in Excess of Other Assets | (21.8 | ) |
| Ten largest holdings |
| Security(a) | Percent of
Net Assets | |
| iShares ESG Aware U.S. Aggregate Bond ETF | 52.4 | % |
| iShares ESG Aware MSCI USA ETF | 22.2 | % |
| iShares TIPS Bond ETF | 7.9 | % |
| iShares ESG Aware MSCI EAFE ETF | 7.0 | % |
| iShares ESG Aware MSCI EM ETF | 3.1 | % |
| iShares ESG Aware MSCI USA Small-Cap ETF | 2.9 | % |
| iShares Developed Real Estate Index Fund, Class K | 2.2 | % |
| iShares MSCI EAFE Small-Cap ETF | 1.1 | % |
| iShares MSCI Canada ETF | 0.9 | % |
| iShares MSCI Emerging Markets Small-Cap ETF | 0.5 | % |
| (a) | Excludes short-term securities. |
Material Fund changes
This is a summary of certain changes to the Fund since October 31, 2023. For more complete information, you may review the Fund’s next prospectus, which we expect to be available approximately 120 days after October 31, 2024 at blackrock.com/fundreports or upon request by contacting us at (800) 441-7762.
On May 16, 2024, the Fund’s Board approved the reorganization of BlackRock LifePath® ESG Index 2025 Fund, with and into the Fund. The reorganization closed on October 7, 2024.
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.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, FTSE International Limited, MSCI Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies 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 LifePath® ESG Index Retirement Fund
Class K Shares | LERKX
Annual Shareholder Report — October 31, 2024
LERKX-10/24-AR
(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 trustees (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 trustees 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 trustees.
| Item 4 – | Principal Accountant Fees and Services |
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) 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 Diversified Fixed Income Fund | | $33,600 | | $30,300 | | $0 | | $0 | | $12,000 | | $12,000 | | $0 | | $0 |
| BlackRock LifePath® ESG Index 2030 Fund | | $15,900 | | $15,857 | | $0 | | $0 | | $10,750 | | $10,750 | | $0 | | $0 |
| BlackRock LifePath® ESG Index 2035 Fund | | $15,900 | | $15,857 | | $0 | | $0 | | $10,750 | | $10,750 | | $0 | | $0 |
| BlackRock LifePath® ESG Index 2040 Fund | | $15,900 | | $15,857 | | $0 | | $0 | | $10,750 | | $10,750 | | $0 | | $0 |
| BlackRock LifePath® ESG Index 2045 Fund | | $15,900 | | $15,857 | | $0 | | $0 | | $10,750 | | $10,750 | | $0 | | $0 |
| BlackRock LifePath® ESG Index 2050 Fund | | $15,900 | | $15,857 | | $0 | | $0 | | $10,750 | | $10,750 | | $0 | | $0 |
| BlackRock LifePath® ESG Index 2055 Fund | | $15,900 | | $15,857 | | $0 | | $0 | | $10,750 | | $10,750 | | $0 | | $0 |
| BlackRock LifePath® ESG Index 2060 Fund | | $15,900 | | $15,857 | | $0 | | $0 | | $10,750 | | $10,750 | | $0 | | $0 |
| BlackRock LifePath® ESG Index 2065 Fund | | $15,900 | | $15,857 | | $0 | | $0 | | $10,750 | | $10,750 | | $0 | | $0 |
| BlackRock LifePath® ESG Index 2070 Fund | | $14,130 | | $0 | | $0 | | $0 | | $10,750 | | $0 | | $0 | | $0 |
| BlackRock LifePath® ESG Index Retirement Fund | | $15,900 | | $15,857 | | $0 | | $0 | | $10,750 | | $10,750 | | $0 | | $0 |
1
The following table presents fees billed by PwC 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 | | $0 | | $0 |
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, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.
2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.
3 Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by PwC with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.
(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.
2
(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 aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:
| | | | |
| Entity Name | | Current Fiscal Year End | | Previous Fiscal Year End |
| BlackRock Diversified Fixed Income Fund | | $12,000 | | $12,000 |
| BlackRock LifePath® ESG Index 2030 Fund | | $10,750 | | $10,750 |
| BlackRock LifePath® ESG Index 2035 Fund | | $10,750 | | $10,750 |
| BlackRock LifePath® ESG Index 2040 Fund | | $10,750 | | $10,750 |
| BlackRock LifePath® ESG Index 2045 Fund | | $10,750 | | $10,750 |
| BlackRock LifePath® ESG Index 2050 Fund | | $10,750 | | $10,750 |
| BlackRock LifePath® ESG Index 2055 Fund | | $10,750 | | $10,750 |
| BlackRock LifePath® ESG Index 2060 Fund | | $10,750 | | $10,750 |
| BlackRock LifePath® ESG Index 2065 Fund | | $10,750 | | $10,750 |
| BlackRock LifePath® ESG Index 2070 Fund | | $10,750 | | $0 |
| BlackRock LifePath® ESG Index Retirement Fund | | $10,750 | | $10,750 |
(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 |
(a) The registrant’s Schedule of Investments is included as part of the Financial Statement 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.
3
October 31, 2024
2024 Annual Financial Statements and Additional Information |
|
• BlackRock Diversified Fixed Income Fund |
Not FDIC Insured • May Lose Value • No Bank Guarantee |
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.
BlackRock Diversified Fixed Income Fund
Derivative Financial Instruments3
Schedule of InvestmentsOctober 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
|
1988 CLO Ltd., Series 2024-5A, Class A1, (3-mo. CME Term SOFR + 1.54%), 6.87%, 07/15/37(a)(b) | | | |
ACE Securities Corp. Home Equity Loan Trust, Series 2005-AG1, Class M2, (1-mo. Term SOFR + 0.80%), 5.54%, 08/25/35(a) | | | |
ACHV ABS Trust, Series 2024-1PL, Class B, 6.34%, 04/25/31(b) | | | |
Affirm Asset Securitization Trust(b) | | | |
Series 2022-Z1, Class A, 4.55%, 06/15/27 | | | |
Series 2023-A, Class 1D, 9.09%, 01/18/28 | | | |
Series 2023-B, Class B, 7.44%, 09/15/28 | | | |
Series 2023-B, Class D, 8.78%, 09/15/28 | | | |
Series 2023-X1, Class C, 8.25%, 11/15/28 | | | |
Series 2023-X1, Class D, 9.55%, 11/15/28 | | | |
Series 2024-A, Class 1B, 5.93%, 02/15/29 | | | |
Series 2024-A, Class A, 5.61%, 02/15/29 | | | |
Series 2024-A, Class B, 5.93%, 02/15/29 | | | |
Series 2024-B, Class C, 5.06%, 09/15/29 | | | |
Series 2024-X1, Class D, 7.29%, 05/15/29 | | | |
AGL CLO Ltd., Series 2024-32A, Class A1, (3-mo. CME Term SOFR + 1.38%), 6.65%, 07/21/37(a)(b) | | | |
AGL Core CLO Ltd., Series 2019-2A, Class A1R, (3-mo. CME Term SOFR + 1.46%), 6.08%, 07/20/37(a)(b) | | | |
Ajax Mortgage Loan Trust, Series 2023-B, Class A, 4.25%, 10/25/62(b) | | | |
AMSR Trust, Series 2020-SFR4, Class G2, 4.87%, 11/17/37(b) | | | |
Anchorage Capital CLO Ltd., Series 2015-6A, Class BR3, (3-mo. CME Term SOFR + 2.10%), 6.73%, 04/22/34(a)(b) | | | |
ARES Loan Funding IV Ltd., Series 2023-ALF4A, Class D, (3-mo. CME Term SOFR + 4.68%), 9.34%, 10/15/36(a)(b) | | | |
Argent Mortgage Loan Trust, Series 2005-W1, Class A2, (1-mo. Term SOFR + 0.59%), 5.33%, 05/25/35(a) | | | |
Asset-Backed Securities Corp. Home Equity Loan Trust, Series 2004-HE9, Class M1, (1-mo. Term SOFR + 0.76%), 5.83%, 12/25/34(a) | | | |
Bain Capital Credit CLO Ltd., Series 2024-2A, Class A1, (3-mo. CME Term SOFR + 1.52%), 6.18%, 07/15/37(a)(b) | | | |
Ballyrock CLO 15 Ltd., Series 2021-1A, Class A1, (3-mo. CME Term SOFR + 1.32%), 5.98%, 04/15/34(a)(b) | | | |
Barclays Mortgage Trust, Series 2021-NPL1, Class A, 2.00%, 11/25/51(b) | | | |
Bear Stearns Asset-Backed Securities I Trust, Series 2006-HE7, Class 1A2, (1-mo. Term SOFR + 0.45%), 5.19%, 09/25/36(a) | | | |
Bear Stearns Asset-Backed Securities Trust, Series 2005-2, Class M5, (1-mo. Term SOFR + 5.36%), 6.89%, 06/25/35(a) | | | |
Bear Stearns Structured Products Trust, Series 2007- EMX1, Class M1, (1-mo. Term SOFR + 2.11%), 6.85%, 03/25/37(a)(b) | | | |
Benefit Street Partners CLO IV Ltd., Series 2014-IVA, Class AR4, (3-mo. CME Term SOFR + 1.35%), 5.97%, 04/20/34(a)(b) | | | |
| | | |
Asset-Backed Securities (continued) |
Benefit Street Partners CLO XX Ltd., Series 2020- 20A, Class AR, (3-mo. CME Term SOFR + 1.43%), 6.09%, 07/15/34(a)(b) | | | |
Benefit Street Partners CLO XXVII Ltd., Series 2022- 27A, Class AR, (3-mo. CME Term SOFR + 1.37%), 5.99%, 10/20/37(a)(b) | | | |
Betony CLO Ltd., Series 2018-1A, Class A1, (3-mo. CME Term SOFR + 1.34%), 5.93%, 04/30/31(a)(b) | | | |
Blue Bridge Funding LLC, Series 2023-1A, Class A, 7.37%, 11/15/30(b) | | | |
BlueMountain CLO Ltd., Series 2018-3A, Class BR, (3-mo. CME Term SOFR + 1.85%), 6.48%, 10/25/30(a)(b) | | | |
BlueMountain Fuji U.S. CLO II Ltd., Series 2017-2A, Class A1AR, (3-mo. CME Term SOFR + 1.26%), 5.88%, 10/20/30(a)(b) | | | |
Brex Commercial Charge Card Master Trust, Series 2024-1, Class A1, 6.05%, 07/15/27(b) | | | |
Canyon CLO Ltd., Series 2023-2A, Class B, (3-mo. CME Term SOFR + 2.05%), 6.71%, 05/15/37(a)(b) | | | |
Carlyle Global Market Strategies CLO Ltd., Series 2012-3RR, Class A1A2, (3-mo. CME Term SOFR + 1.44%), 6.10%, 01/14/32(a)(b) | | | |
CARLYLE U.S. CLO Ltd.(a)(b) | | | |
Series 2017-3A, Class A1R2, (3-mo. CME Term SOFR + 1.40%), 6.54%, 10/21/37 | | | |
Series 2017-3A, Class BR2, (3-mo. CME Term SOFR + 1.78%), 6.92%, 10/21/37 | | | |
Cedar Funding VIII CLO Ltd., Series 2017-8A, Class BR, (3-mo. CME Term SOFR + 1.91%), 6.56%, 10/17/34(a)(b) | | | |
CFMT LLC, Series 2023-HB11, Class M2, 4.00%, 02/25/37(a)(b) | | | |
| | | |
Series 2014-3A, Class A1R2, (3-mo. CME Term SOFR + 1.46%), 6.09%, 10/22/31 | | | |
Series 2017-1A, Class ARR, (3-mo. CME Term SOFR + 1.55%), 6.17%, 04/21/37 | | | |
Series 2017-5A, Class AR, (3-mo. CME Term SOFR + 1.41%), 6.06%, 07/17/37 | | | |
Series 2017-5A, Class DR, (3-mo. CME Term SOFR + 3.05%), 7.70%, 07/17/37 | | | |
Series 2018-3A, Class B, (3-mo. CME Term SOFR + 1.86%), 6.49%, 07/18/31 | | | |
Series 2019-6A, Class A1R, (3-mo. CME Term SOFR + 1.45%), 6.10%, 07/16/37 | | | |
Series 2021-1A, Class BR, (3-mo. CME Term SOFR + 1.75%), 6.38%, 07/25/37 | | | |
Series 2021-1AR, Class A1R, (3-mo. CME Term SOFR + 1.42%), 6.05%, 07/25/37 | | | |
Series 2021-4A, Class AR, (3-mo. CME Term SOFR + 1.36%), 6.53%, 07/23/37 | | | |
Series 2023-3A, Class A, (3-mo. CME Term SOFR + 1.60%), 6.22%, 01/20/37 | | | |
Series 2023-3A, Class B, (3-mo. CME Term SOFR + 2.30%), 6.92%, 01/20/37 | | | |
CIT Mortgage Loan Trust(a)(b) | | | |
Series 2007-1, Class 1M2, (1-mo. Term SOFR + 1.86%), 6.60%, 10/25/37 | | | |
Series 2007-1, Class 2M2, (1-mo. Term SOFR + 1.86%), 6.60%, 10/25/37 | | | |
42024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Asset-Backed Securities (continued) |
Clover CLO LLC, Series 2021-1A, Class A, (3-mo. CME Term SOFR + 1.36%), 5.99%, 04/22/34(a)(b) | | | |
College Avenue Student Loans LLC, Series 2023-B, Class A1A, 6.50%, 06/25/54(b) | | | |
College Avenue Student Loans Trust, Series 2024-A, Class A1B, (30-day Avg SOFR + 1.75%), 6.61%, 06/25/54(a)(b) | | | |
Concord Music Royalties LLC, Series 2024-1A, Class A, 5.64%, 10/20/74(b) | | | |
Conn’s Receivables Funding LLC, Series 2024-A, Class A, 7.05%, 01/16/29(b) | | | |
Conseco Finance Corp., Series 1998-4, Class M1, 6.83%, 04/01/30(a) | | | |
Credit Suisse First Boston Mortgage Securities Corp., Series 2004-CF2, Class 1B, 6.00%, 01/25/43(b) | | | |
Credit-Based Asset Servicing and Securitization LLC, Series 2006-MH1, Class B2, 6.75%, 10/25/36(b) | | | |
CWABS Asset-Backed Certificates Trust(a) | | | |
Series 2006-11, Class 1AF4, 6.30%, 12/25/35 | | | |
Series 2006-13, Class 1AF4, 3.96%, 01/25/37 | | | |
CWABS Asset-Backed Notes Trust, Series 2007- SEA2, Class 2A1, (1-mo. Term SOFR + 1.61%), 6.35%, 06/25/47(a)(b) | | | |
CWHEQ Revolving Home Equity Loan Trust, Series 2006-I, Class 1A, (1-mo. Term SOFR + 0.25%), 5.06%, 01/15/37(a) | | | |
Diameter Capital CLO Ltd.(a)(b) | | | |
Series 2021-1A, Class A1R, (3-mo. CME Term SOFR + 1.39%), 6.02%, 10/15/37 | | | |
Series 2024-8A, Class A1A, (3-mo. CME Term SOFR + 1.40%), 5.95%, 10/20/37 | | | |
Drive Auto Receivables Trust, Series 2024-2, Class C, 4.67%, 05/17/32 | | | |
Dryden CLO Ltd., Series 2022-104A, Class A1R, (3-mo. CME Term SOFR + 1.29%), 6.29%, 08/20/34(a)(b) | | | |
Dryden Senior Loan Fund(a)(b) | | | |
Series 2015-41A, Class AR, (3-mo. CME Term SOFR + 1.23%), 5.89%, 04/15/31 | | | |
Series 2017-50A, Class B, (3-mo. CME Term SOFR + 1.91%), 6.57%, 07/15/30 | | | |
Elmwood CLO 22 Ltd., Series 2023-1A, Class B, (3- mo. CME Term SOFR + 2.20%), 6.85%, 04/17/36(a)(b) | | | |
Elmwood CLO 30 Ltd., Series 2024-6A, Class A, (3- mo. CME Term SOFR + 1.43%), 6.73%, 07/17/37(a)(b) | | | |
Elmwood CLO II Ltd.(a)(b) | | | |
Series 2019-2A, Class A1RR, 10/20/37(c) | | | |
Series 2019-2A, Class AR, (3-mo. CME Term SOFR + 1.41%), 6.03%, 04/20/34 | | | |
Elmwood CLO III Ltd., Series 2019-3A, Class ERR, (3-mo. CME Term SOFR + 5.95%), 10.58%, 07/18/37(a)(b) | | | |
Equity One Mortgage Pass-Through Trust, Series 2003-3, Class M2, 4.18%, 12/25/33(a) | | | |
Exeter Automobile Receivables Trust | | | |
Series 2022-2A, Class C, 3.85%, 07/17/28 | | | |
Series 2022-5A, Class D, 7.40%, 02/15/29 | | | |
Series 2023-2A, Class D, 6.32%, 08/15/29 | | | |
series 2023-3A, Class D, 6.68%, 04/16/29 | | | |
Series 2023-5A, Class C, 6.85%, 01/16/29 | | | |
Series 2023-A4, Class D, 6.95%, 12/17/29 | | | |
| | | |
Asset-Backed Securities (continued) |
First Franklin Mortgage Loan Trust, Series 2006- FF13, Class A1, (1-mo. Term SOFR + 0.35%), 5.09%, 10/25/36(a) | | | |
| | | |
Series 2022-SFR1, Class E2, 5.00%, 05/19/39 | | | |
Series 2022-SFR3, Class E2, 3.50%, 07/17/38 | | | |
Fortuna Consumer Loan ABS DAC, Series 2024-2, Class E, (1-mo. EURIBOR + 4.10%), 7.37%, 10/18/34(a) | | | |
Galaxy XXVI CLO Ltd., Series 2018-26A, Class AR, (3-mo. CME Term SOFR + 1.17%), 6.29%, 11/22/31(a)(b) | | | |
Galaxy XXVII CLO Ltd., Series 2018-28A, Class A1, (3-mo. CME Term SOFR + 1.36%), 6.02%, 07/15/31(a)(b) | | | |
GoldenTree Loan Management U.S. CLO Ltd., Series 2021-11A, Class A, (3-mo. CME Term SOFR + 1.39%), 6.01%, 10/20/34(a)(b) | | | |
Goldman Home Improvement Trust Issuer Trust, Series 2022-GRN1, Class A, 4.50%, 06/25/52(b) | | | |
Golub Capital Partners CLO Ltd.(a)(b) | | | |
Series 2019-41A, Class AR, (3-mo. CME Term SOFR + 1.58%), 6.20%, 01/20/34 | | | |
Series 2021-55A, Class A, (3-mo. CME Term SOFR + 1.46%), 6.08%, 07/20/34 | | | |
Series 2023-66A, Class A, (3-mo. CME Term SOFR + 1.95%), 6.58%, 04/25/36 | | | |
Golub Capital Partners LP, Series 2020-48A, Class A1, (3-mo. CME Term SOFR + 1.57%), 6.22%, 04/17/33(a)(b) | | | |
GoodLeap Home Improvement Solutions Trust, Series 2024-1A, Class A, 5.35%, 10/20/46(b) | | | |
Gracie Point International Funding LLC(a)(b) | | | |
Series 2023-1A, Class A, (90-day Avg SOFR + 1.95%), 7.32%, 09/01/26 | | | |
Series 2023-2A, Class A, (90-day Avg SOFR + 2.25%), 7.62%, 03/01/27 | | | |
Series 2024-1A, Class A, (90-day Avg SOFR + 1.70%), 7.07%, 03/01/28 | | | |
GreenSky Home Improvement Issuer Trust(b) | | | |
Series 2024-2, Class A4, 5.15%, 10/27/59 | | | |
Series 2024-2, Class B, 5.26%, 10/27/59 | | | |
GreenSky Home Improvement Trust, Series 2024-1, Class A4, 5.67%, 06/25/59(b) | | | |
HIG RCP LLC, Series 2023-FL1, Class A, (1-mo. Term SOFR + 2.27%), 7.08%, 09/19/38(a)(b) | | | |
Huntington Bank Auto Credit-Linked Notes(a)(b) | | | |
Series 2024-1, Class B2, (30-day Avg SOFR + 1.40%), 6.29%, 05/20/32 | | | |
Series 2024-2, Class B2, 10/20/32(c) | | | |
Invesco CLO Ltd., Series 2021-3A, Class B, (3-mo. CME Term SOFR + 1.91%), 6.54%, 10/22/34(a)(b) | | | |
Invesco Euro CLO, Series 6A, Class D, (3-mo. EURIBOR + 3.05%), 6.23%, 07/15/34(a)(b) | | | |
Lendmark Funding Trust(b) | | | |
Series 2022-1A, Class A, 5.12%, 07/20/32 | | | |
Series 2023-1A, Class D, 8.69%, 05/20/33 | | | |
Long Beach Mortgage Loan Trust, Series 2006-2, Class 1A, (1-mo. Term SOFR + 0.47%), 5.21%, 03/25/46(a) | | | |
Madison Park Funding LXII Ltd., Series 2022-62A, Class AR, (3-mo. CME Term SOFR + 1.85%), 6.50%, 07/17/36(a)(b) | | | |
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Asset-Backed Securities (continued) |
Madison Park Funding LXVII Ltd., Series 2024-67A, Class B, (3-mo. CME Term SOFR + 2.05%), 6.68%, 04/25/37(a)(b) | | | |
Madison Park Funding XLV Ltd., Series 2020-45A, Class AR, (3-mo. CME Term SOFR + 1.38%), 6.04%, 07/15/34(a)(b) | | | |
Madison Park Funding XLVI Ltd., Series 2020-46A, Class B1R, (3-mo. CME Term SOFR + 1.91%), 6.57%, 10/15/34(a)(b) | | | |
Madison Park Funding XXXI Ltd.(a)(b) | | | |
Series 2018-31A, Class B1R, (3-mo. CME Term SOFR + 1.80%), 6.43%, 07/23/37 | | | |
Series 2018-31A, Class CR, (3-mo. CME Term SOFR + 2.25%), 6.88%, 07/23/37 | | | |
Madison Park Funding XXXIV Ltd., Series 2019-36A, Class B1R, (3-mo. CME Term SOFR + 1.90%), 6.56%, 04/15/35(a)(b) | | | |
Madison Park Funding XXXVIII Ltd., Series 2021- 38A, Class A, (3-mo. CME Term SOFR + 1.38%), 6.03%, 07/17/34(a)(b) | | | |
Mariner Finance Issuance Trust(b) | | | |
Series 2024-A, Class A, 5.13%, 09/22/36 | | | |
Series 2024-BA, Class A, 4.91%, 11/20/38 | | | |
Mastr Asset Backed Securities Trust, Series 2007- NCW, Class A1, (1-mo. Term SOFR + 0.41%), 5.15%, 05/25/37(a)(b) | | | |
MFA Trust, Series 2024-NPL1, Class A1, 6.33%, 09/25/54 | | | |
MidOcean Credit CLO XII Ltd., Series 2023-12A, Class A1R, (3-mo. CME Term SOFR + 1.34%), 5.97%, 04/18/36(a)(b) | | | |
Morgan Stanley Mortgage Loan Trust | | | |
Series 2006-12XS, Class A4, 6.51%, 10/25/36 | | | |
Series 2007-3XS, Class 2A4S, 6.46%, 01/25/47 | | | |
Myers Park CLO Ltd., Series 2018-1A, Class A2, (3-mo. CME Term SOFR + 1.66%), 6.28%, 10/20/30(a)(b) | | | |
Navient Private Education Refi Loan Trust(b) | | | |
Series 2019-CA, Class A2, 3.13%, 02/15/68 | | | |
Series 2020-CA, Class A2B, (1-mo. Term SOFR + 1.71%), 6.52%, 11/15/68(a) | | | |
Series 2024-A, Class A, 5.66%, 10/15/72 | | | |
Nelnet Student Loan Trust(b) | | | |
Series 2021-A, Class B1, 2.85%, 04/20/62 | | | |
Series 2023-PL1, Class A1A, (30-day Avg SOFR + 2.25%), 7.11%, 11/25/53(a) | | | |
NetCredit Combined Receivables LLC(b) | | | |
Series 2024-A, Class A, 7.43%, 10/21/30 | | | |
Series 2024-A, Class B, 8.31%, 10/21/30 | | | |
Neuberger Berman CLO XV, Series 2013-15A, Class A1R2, (3-mo. CME Term SOFR + 1.18%), 5.84%, 10/15/29(a)(b) | | | |
Neuberger Berman Loan Advisers CLO Ltd., Series 2021-40A, Class A, (3-mo. CME Term SOFR + 1.32%), 5.97%, 04/16/33(a)(b) | | | |
NYMT Trust, Series 2024-RR1, Class A, 7.38%, 05/25/64(b) | | | |
| | | |
Series 2014-5A, Class A1R, (3-mo. CME Term SOFR + 1.34%), 5.96%, 04/26/31 | | | |
| | | |
Asset-Backed Securities (continued) |
OCP CLO Ltd.(a)(b) (continued) | | | |
Series 2019-17A, Class AR2, (3-mo. CME Term SOFR + 1.40%), 6.02%, 07/20/37 | | | |
Series 2020-8RA, Class A1, (3-mo. CME Term SOFR + 1.48%), 6.13%, 01/17/32 | | | |
Series 2020-8RA, Class AR, 10/17/36(c) | | | |
Octagon Investment Partners Ltd.(a)(b) | | | |
Series 2018-1A, Class A1A, (3-mo. CME Term SOFR + 1.32%), 5.94%, 01/20/31 | | | |
Series 2018-3A, Class BR, (3-mo. CME Term SOFR + 1.80%), 6.42%, 10/20/30 | | | |
Octagon Investment Partners XV Ltd., Series 2013- 1A, Class A1RR, (3-mo. CME Term SOFR + 1.23%), 5.85%, 07/19/30(a)(b) | | | |
| | | |
Series 2021-1A, Class B1, (3-mo. CME Term SOFR + 1.91%), 6.57%, 10/15/34 | | | |
Series 2022-1A, Class A1R, (3-mo. CME Term SOFR + 1.75%), 6.85%, 11/16/36 | | | |
OHA Credit Funding Ltd.(a)(b) | | | |
Series 2019-3A, Class AR, (3-mo. CME Term SOFR + 1.40%), 6.02%, 07/02/35 | | | |
Series 2020-7A, Class AR, (3-mo. CME Term SOFR + 1.30%), 5.92%, 02/24/37 | | | |
Series 2024-17A, Class A, (3-mo. CME Term SOFR + 1.48%), 6.10%, 04/20/37 | | | |
Series 2024-19A, Class B1, (3-mo. CME Term SOFR + 1.70%), 6.99%, 07/20/37 | | | |
OHA Credit Partners XI Ltd., Series 2015-11A, Class A1R2, (3-mo. CME Term SOFR + 1.46%), 6.08%, 04/20/37(a)(b) | | | |
OHA Credit Partners XVI Ltd., Series 2021-16AR, Class AR, (3-mo. CME Term SOFR + 1.35%), 5.98%, 10/18/37(a)(b) | | | |
OHA Loan Funding Ltd.(a)(b) | | | |
Series 2015-1A, Class AR3, (3-mo. CME Term SOFR + 1.41%), 6.03%, 01/19/37 | | | |
Series 2016-1A, Class A1R2, (3-mo. CME Term SOFR + 1.46%), 6.08%, 07/20/37 | | | |
OnDeck Asset Securitization Trust IV LLC, Series 2023-1A, Class A, 7.00%, 08/19/30(b) | | | |
OneMain Financial Issuance Trust(b) | | | |
Series 2020-2A, Class A, 1.75%, 09/14/35 | | | |
Series 2020-2A, Class B, 2.21%, 09/14/35 | | | |
Series 2024-1A, Class A, 5.79%, 05/14/41 | | | |
Option One Mortgage Loan Trust, Series 2007-FXD1, Class 3A4, 5.86%, 01/25/37 | | | |
Orchard Park CLO Ltd., Series 2024-1A, Class A, (3-mo. CME Term SOFR + 1.36%), 6.01%, 10/20/37(a)(b) | | | |
Origen Manufactured Housing Contract Trust, Series 2007-B, Class A1, (1-mo. LIBOR US + 1.20%), 6.16%, 10/15/37(a)(b) | | | |
Owl Rock CLO XVIII LLC, Series 2024-18A, Class A, (3-mo. CME Term SOFR + 1.70%), 7.00%, 07/24/36(a)(b) | | | |
OZLM XVIII Ltd., Series 2018-18A, Class A, (3-mo. CME Term SOFR + 1.28%), 5.94%, 04/15/31(a)(b) | | | |
Palmer Square CLO Ltd.(a)(b) | | | |
Series 2019-1A, Class A1R, (3-mo. CME Term SOFR + 1.41%), 6.53%, 11/14/34 | | | |
62024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Asset-Backed Securities (continued) |
Palmer Square CLO Ltd.(a)(b) (continued) | | | |
Series 2024-2A, Class B, (3-mo. CME Term SOFR + 1.65%), 6.94%, 07/20/37 | | | |
Palmer Square Loan Funding Ltd.(a)(b) | | | |
Series 2022-1A, Class A1, (3-mo. CME Term SOFR + 1.05%), 5.70%, 04/15/30 | | | |
Series 2022-3A, Class A2R, (3-mo. CME Term SOFR + 1.60%), 6.26%, 04/15/31 | | | |
Series 2023-2A, Class C, (3-mo. CME Term SOFR + 4.35%), 8.98%, 01/25/32 | | | |
PFS Financing Corp., Series 2022-D, Class D, 4.90%, 08/15/27(b) | | | |
Pikes Peak CLO, Series 2020-6A, Class AR, (3-mo. CME Term SOFR + 1.43%), 6.53%, 05/18/34(a)(b) | | | |
| | | |
Series 2023-RN2, Class A1, 8.11%, 11/25/53 | | | |
Series 2024-NAPL, Class A1, 7.14%, 01/25/54 | | | |
Series 2024-NPL2, Class A1, 7.02%, 02/25/54 | | | |
Series 2024-NPL4, Class A1, 7.00%, 07/25/54 | | | |
Series 2024-NPL5, Class A1, 5.96%, 09/25/54 | | | |
Series 2024-RN2, Class A1, 7.12%, 04/25/54 | | | |
Progress Residential Trust(b) | | | |
Series 2022-SFR3, Class F, 6.60%, 04/17/39 | | | |
Series 2023-SFR1, Class E1, 6.15%, 03/17/40 | | | |
Series 2023-SFR2, Class E1, 4.75%, 10/17/40 | | | |
PRPM LLC, Series 2022-1, Class A1, 3.72%, 02/25/27(b) | | | |
Rad CLO Ltd., Series 2020-7A, Class B1R, (3-mo. CME Term SOFR + 1.90%), 6.55%, 04/17/36(a)(b) | | | |
RCO Mortgage LLC, Series 2024-1, Class A1, 7.02%, 01/25/29(b) | | | |
Redwood Funding Trust, Series 2023-1, Class A, 7.50%, 07/25/59(b) | | | |
Regatta XI Funding Ltd., Series 2018-1A, Class AR, (3-mo. CME Term SOFR + 1.40%), 6.05%, 07/17/37(a)(b) | | | |
Regatta XVIII Funding Ltd., Series 2021-1A, Class A1, (3-mo. CME Term SOFR + 1.36%), 6.02%, 01/15/34(a)(b) | | | |
Regatta XXVII Funding Ltd., Series 2024-1A, Class A1, (3-mo. CME Term SOFR + 1.53%), 6.15%, 04/26/37(a)(b) | | | |
Regional Management Issuance Trust(b) | | | |
Series 2020-1, Class A, 2.34%, 10/15/30 | | | |
Series 2021-1, Class A, 1.68%, 03/17/31 | | | |
Series 2021-2, Class A, 1.90%, 08/15/33 | | | |
Series 2021-2, Class B, 2.35%, 08/15/33 | | | |
Series 2022-1, Class A, 3.07%, 03/15/32 | | | |
Republic Finance Issuance Trust(b) | | | |
Series 2024-A, Class B, 6.47%, 08/20/32 | | | |
Series 2024-B, Class A, 11/20/37(c) | | | |
Series 2024-B, Class B, 11/20/37(c) | | | |
Residential Mortgage Loan Trust, Series 2020-1, Class B1, 3.95%, 01/26/60(a)(b) | | | |
Santander Drive Auto Receivables Trust | | | |
Series 2022-3, Class B, 4.13%, 08/16/27 | | | |
Series 2022-4, Class B, 4.42%, 11/15/27 | | | |
Series 2022-5, Class C, 4.74%, 10/16/28 | | | |
Series 2022-6, Class B, 4.72%, 06/15/27 | | | |
Series 2022-7, Class B, 5.95%, 01/17/28 | | | |
Series 2024-1, Class C, 5.45%, 03/15/30 | | | |
Service Experts Issuer LLC, Series 2024-1A, Class A, 6.39%, 11/20/35(b) | | | |
| | | |
Asset-Backed Securities (continued) |
Sesac Finance LLC, Series 2019-1, Class A2, 5.22%, 07/25/49(b) | | | |
SMB Private Education Loan Trust(b) | | | |
Series 2016-B, Class A2A, 2.43%, 02/17/32 | | | |
Series 2017-A, Class A2B, (1-mo. Term SOFR + 1.01%), 5.82%, 09/15/34(a) | | | |
Series 2018-B, Class A2B, (1-mo. Term SOFR + 0.83%), 5.64%, 01/15/37(a) | | | |
Series 2021-A, Class B, 2.31%, 01/15/53 | | | |
Series 2024-A, Class A1B, (30-day Avg SOFR + 1.45%), 6.44%, 03/15/56(a) | | | |
Series 2024-A, Class B, 5.88%, 03/15/56 | | | |
Series 2024-C, Class A1B, (30-day Avg SOFR + 1.10%), 6.09%, 06/17/52(a) | | | |
SoFi Personal Loan Term, Series 2024-1, Class A, 6.06%, 02/12/31(b) | | | |
SoFi Professional Loan Program LLC(b) | | | |
Series 2017-D, Class BFX, 3.61%, 09/25/40 | | | |
Series 2017-E, Class C, 4.16%, 11/26/40 | | | |
Soundview Home Loan Trust(a) | | | |
Series 2005-OPT3, Class M4, (1-mo. Term SOFR + 1.13%), 5.87%, 11/25/35 | | | |
Series 2007-NS1, Class M1, (1-mo. Term SOFR + 0.46%), 5.20%, 01/25/37 | | | |
Subway Funding LLC, Series 2024-1A, Class A2II, 6.27%, 07/30/54(b) | | | |
Symphony CLO Ltd., Series 2023-38A, Class B1, (3-mo. CME Term SOFR + 2.25%), 6.88%, 04/24/36(a)(b) | | | |
TCI-Symphony CLO Ltd., Series 2017-1A, Class AR, (3-mo. CME Term SOFR + 1.19%), 5.85%, 07/15/30(a)(b) | | | |
TICP CLO VI Ltd., Series 2016-6A, Class AR2, (3-mo. CME Term SOFR + 1.38%), 6.04%, 01/15/34(a)(b) | | | |
TICP CLO XI Ltd., Series 2018-11A, Class AR, (3-mo. CME Term SOFR + 1.53%), 6.16%, 04/25/37(a)(b) | | | |
Trestles CLO Ltd., Series 2017-1A, Class A1RR, (3- mo. CME Term SOFR + 1.46%), 6.09%, 07/25/37(a)(b) | | | |
Verdelite Static CLO Ltd., Series 2024-1A, Class A, (3-mo. CME Term SOFR + 1.13%), 5.75%, 07/20/32(a)(b) | | | |
| | | |
Series 2014-1A, Class AAR2, (3-mo. CME Term SOFR + 1.25%), 5.88%, 04/18/31 | | | |
Series 2017-3A, Class DR, (3-mo. CME Term SOFR + 7.21%), 11.83%, 04/20/34 | | | |
Series 2019-1A, Class A1RR, (3-mo. CME Term SOFR + 1.37%), 5.82%, 10/15/37 | | | |
WaMu Asset-Backed Certificates WaMu Trust(a) | | | |
Series 2007-HE1, Class 2A3, (1-mo. Term SOFR + 0.41%), 5.15%, 01/25/37 | | | |
Series 2007-HE2, Class 2A2, (1-mo. Term SOFR + 0.30%), 5.04%, 04/25/37 | | | |
Series 2007-HE2, Class 2A3, (1-mo. Term SOFR + 0.36%), 5.10%, 04/25/37 | | | |
Series 2007-HE2, Class 2A4, (1-mo. Term SOFR + 0.47%), 5.21%, 04/25/37 | | | |
Washington Mutual Asset-Backed Certificates WMABS Trust, Series 2007-HE2, Class 2A1, (1- mo. Term SOFR + 0.31%), 5.05%, 02/25/37(a) | | | |
Westlake Automobile Receivables Trust(b) | | | |
Series 2021-2A, Class D, 1.23%, 12/15/26 | | | |
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Asset-Backed Securities (continued) |
Westlake Automobile Receivables Trust(b) (continued) | | | |
Series 2022-1A, Class D, 3.49%, 03/15/27 | | | |
Series 2022-2A, Class C, 4.85%, 09/15/27 | | | |
Series 2022-2A, Class D, 5.48%, 09/15/27 | | | |
Series 2022-3A, Class A3, 5.49%, 07/15/26 | | | |
Series 2023-1A, Class C, 5.74%, 08/15/28 | | | |
Series 2023-1A, Class D, 6.79%, 11/15/28 | | | |
Series 2023-2A, Class B, 6.14%, 03/15/28 | | | |
Series 2023-2A, Class C, 6.29%, 03/15/28 | | | |
Series 2023-2A, Class D, 7.01%, 11/15/28 | | | |
Series 2023-3A, Class C, 6.02%, 09/15/28 | | | |
Series 2023-3A, Class D, 6.47%, 03/15/29 | | | |
Series 2023-4A, Class C, 6.64%, 11/15/28 | | | |
Series 2024-1A, Class D, 6.02%, 10/15/29 | | | |
Series 2024-2A, Class D, 5.91%, 04/15/30 | | | |
Whitebox CLO I Ltd., Series 2019-1AR, Class A1RR, (3-mo. CME Term SOFR + 1.32%), 5.95%, 07/24/36(a)(b) | | | |
Whitebox CLO II Ltd., Series 2020-2A, Class BR, (3-mo. CME Term SOFR + 2.01%), 6.65%, 10/24/34(a)(b) | | | |
Whitebox CLO III Ltd., Series 2021-3A, Class CR, (3-mo. CME Term SOFR + 1.90%), 6.56%, 10/15/35(a)(b)(d) | | | |
Wildwood Park CLO Ltd., Series 2024-1A, Class A, 10/20/37(a)(b)(c) | | | |
Total Asset-Backed Securities — 7.0%
(Cost: $65,889,233) | |
| | | |
|
Mortgage Real Estate Investment Trusts (REITs) — 0.0% | |
Blackstone Mortgage Trust, Inc., Class A(e) | | | |
| |
| | | |
Total Common Stocks — 0.0%
(Cost: $243,099) | |
| | | |
|
Advertising Agencies — 0.0% |
Interpublic Group of Cos., Inc., 3.38%, 03/01/41(e) | | | |
Aerospace & Defense — 0.6% |
BAE Systems PLC, 5.25%, 03/26/31(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/35 | | | |
General Dynamics Corp., 2.25%, 06/01/31 | | | |
| | | |
Aerospace & Defense (continued) |
L3Harris Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series B, 6.15%, 09/01/36 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Automobile Components — 0.0% |
Garrett Motion Holdings, Inc./Garrett LX I SARL, 7.75%, 05/31/32(b) | | | |
Lear Corp., 3.80%, 09/15/27 | | | |
Phinia, Inc., 6.63%, 10/15/32(b) | | | |
| | | |
|
American Honda Finance Corp. | | | |
| | | |
| | | |
| | | |
(12.00% PIK), 12.00%, 12/01/28 | | | |
(13.00% PIK), 13.00%, 06/01/30 | | | |
Ford Motor Credit Co. LLC | | | |
| | | |
| | | |
| | | |
| | | |
General Motors Financial Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Honda Motor Co. Ltd., 2.53%, 03/10/27(e) | | | |
Toyota Motor Corp., 2.76%, 07/02/29 | | | |
Toyota Motor Credit Corp. | | | |
| | | |
| | | |
82024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
|
Toyota Motor Credit Corp. (continued) | | | |
| | | |
| | | |
| | | |
|
Associated Banc-Corp., (1-day SOFR + 3.03%), 6.46%, 08/29/30(a) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
(1-day SOFR + 0.96%), 1.73%, 07/22/27(a) | | | |
(1-day SOFR + 1.05%), 2.55%, 02/04/28(a) | | | |
(1-day SOFR + 1.15%), 1.32%, 06/19/26(a) | | | |
(1-day SOFR + 1.32%), 2.69%, 04/22/32(a) | | | |
(1-day SOFR + 1.33%), 3.38%, 04/02/26(a) | | | |
(1-day SOFR + 1.33%), 2.97%, 02/04/33(a) | | | |
(1-day SOFR + 1.34%), 5.93%, 09/15/27(a) | | | |
(1-day SOFR + 1.56%), 2.97%, 07/21/52(a) | | | |
(1-day SOFR + 1.57%), 5.82%, 09/15/29(a)(e) | | | |
(1-day SOFR + 1.58%), 3.31%, 04/22/42(a) | | | |
(1-day SOFR + 1.63%), 5.20%, 04/25/29(a) | | | |
(1-day SOFR + 1.65%), 5.47%, 01/23/35(a) | | | |
(1-day SOFR + 1.75%), 4.83%, 07/22/26(a) | | | |
(1-day SOFR + 1.88%), 2.83%, 10/24/51(a) | | | |
(1-day SOFR + 1.91%), 5.29%, 04/25/34(a) | | | |
(1-day SOFR + 1.93%), 2.68%, 06/19/41(a) | | | |
(1-day SOFR + 1.99%), 6.20%, 11/10/28(a) | | | |
(1-day SOFR + 2.04%), 4.95%, 07/22/28(a) | | | |
(1-day SOFR + 2.15%), 2.59%, 04/29/31(a) | | | |
(3-mo. CME Term SOFR + 1.30%), 3.42%, 12/20/28(a) | | | |
(3-mo. CME Term SOFR + 1.78%), 4.33%, 03/15/50(a) | | | |
(3-mo. CME Term SOFR + 2.08%), 4.24%, 04/24/38(a) | | | |
(3-mo. CME Term SOFR + 3.41%), 4.08%, 03/20/51(a) | | | |
Series L, 4.18%, 11/25/27 | | | |
Series N, (1-day SOFR + 1.65%), 3.48%, 03/13/52(a) | | | |
| | | |
| | | |
| | | |
Series f2f, (1-day SOFR + 0.88%), 4.57%, 09/10/27(a) | | | |
Bank of New York Mellon Corp.(a) | | | |
(1-day SOFR + 1.03%), 4.95%, 04/26/27 | | | |
(3-mo. CME Term SOFR + 1.33%), 3.44%, 02/07/28 | | | |
| | | |
| | | |
| | | |
| | | |
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|
| | | |
(1-day SOFR + 2.21%), 5.83%, 05/09/27(a) | | | |
(1-year CMT + 3.30%), 7.39%, 11/02/28(a) | | | |
Canadian Imperial Bank of Commerce, 5.26%, 04/08/29(e) | | | |
Citibank N.A., Series BKNT, 5.57%, 04/30/34 | | | |
| | | |
| | | |
| | | |
(1-day SOFR + 0.69%), 2.01%, 01/25/26(a) | | | |
(1-day SOFR + 0.77%), 1.46%, 06/09/27(a) | | | |
(1-day SOFR + 1.17%), 2.56%, 05/01/32(a) | | | |
(1-day SOFR + 1.28%), 3.07%, 02/24/28(a) | | | |
(1-day SOFR + 1.34%), 4.54%, 09/19/30(a) | | | |
(1-day SOFR + 1.42%), 2.98%, 11/05/30(a) | | | |
(1-day SOFR + 1.45%), 5.45%, 06/11/35(a) | | | |
(1-day SOFR + 1.53%), 3.29%, 03/17/26(a) | | | |
(1-day SOFR + 1.94%), 3.79%, 03/17/33(a) | | | |
(1-day SOFR + 2.06%), 5.83%, 02/13/35(a) | | | |
(1-day SOFR + 2.09%), 4.91%, 05/24/33(a) | | | |
(1-day SOFR + 2.66%), 6.17%, 05/25/34(a) | | | |
(1-day SOFR + 2.84%), 3.11%, 04/08/26(a) | | | |
(1-day SOFR + 3.91%), 4.41%, 03/31/31(a) | | | |
(3-mo. CME Term SOFR + 2.10%), 4.28%, 04/24/48(a) | | | |
Cooperatieve Rabobank UA/New York, 4.80%, 01/09/29 | | | |
Fifth Third Bancorp, (1-day SOFR + 2.34%), 6.34%, 07/27/29(a) | | | |
Freedom Mortgage Corp., 12.25%, 10/01/30(b) | | | |
Goldman Sachs Group, Inc. | | | |
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| | | |
| | | |
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| | | |
| | | |
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| | | |
(1-day SOFR + 0.80%), 1.43%, 03/09/27(a) | | | |
(1-day SOFR + 0.82%), 1.54%, 09/10/27(a) | | | |
(1-day SOFR + 0.91%), 1.95%, 10/21/27(a) | | | |
(1-day SOFR + 1.09%), 1.99%, 01/27/32(a)(e) | | | |
(1-day SOFR + 1.14%), 4.69%, 10/23/30(a) | | | |
(1-day SOFR + 1.21%), 5.05%, 07/23/30(a) | | | |
(1-day SOFR + 1.26%), 2.65%, 10/21/32(a) | | | |
(1-day SOFR + 1.27%), 5.73%, 04/25/30(a) | | | |
(1-day SOFR + 1.28%), 2.62%, 04/22/32(a) | | | |
(1-day SOFR + 1.41%), 3.10%, 02/24/33(a) | | | |
(1-day SOFR + 1.47%), 2.91%, 07/21/42(a) | | | |
(1-day SOFR + 1.55%), 5.85%, 04/25/35(a) | | | |
(1-day SOFR + 1.55%), 5.33%, 07/23/35(a) | | | |
(1-day SOFR + 1.63%), 3.44%, 02/24/43(a) | | | |
(1-day SOFR + 1.73%), 4.48%, 08/23/28(a) | | | |
(3-mo. CME Term SOFR + 1.56%), 4.22%, 05/01/29(a) | | | |
(3-mo. CME Term SOFR + 1.63%), 4.02%, 10/31/38(a) | | | |
(3-mo. CME Term SOFR + 1.77%), 3.69%, 06/05/28(a) | | | |
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
|
Goldman Sachs Group, Inc. (continued) | | | |
Series VAR, (1-day SOFR + 0.79%), 1.09%, 12/09/26(a) | | | |
| | | |
| | | |
(1-day SOFR + 1.43%), 3.00%, 03/10/26(a) | | | |
(1-day SOFR + 1.51%), 4.18%, 12/09/25(a) | | | |
(1-day SOFR + 1.57%), 5.89%, 08/14/27(a) | | | |
(1-day SOFR + 1.93%), 2.10%, 06/04/26(a) | | | |
(1-day SOFR + 2.98%), 6.55%, 06/20/34(a) | | | |
(1-day SOFR + 3.35%), 7.39%, 11/03/28(a) | | | |
| | | |
(1-day SOFR + 1.56%), 6.08%, 09/11/27 | | | |
(1-day SOFR + 2.09%), 6.11%, 09/11/34 | | | |
Inter-American Development Bank, 4.50%, 05/15/26 | | | |
| | | |
| | | |
| | | |
(1-day SOFR + 0.80%), 1.05%, 11/19/26(a) | | | |
(1-day SOFR + 0.86%), 4.51%, 10/22/28(a) | | | |
(1-day SOFR + 0.92%), 2.60%, 02/24/26(a) | | | |
(1-day SOFR + 0.93%), 5.57%, 04/22/28(a) | | | |
(1-day SOFR + 0.93%), 4.98%, 07/22/28(a) | | | |
(1-day SOFR + 1.07%), 1.95%, 02/04/32(a) | | | |
(1-day SOFR + 1.13%), 5.00%, 07/22/30(a) | | | |
(1-day SOFR + 1.16%), 5.58%, 04/22/30(a) | | | |
(1-day SOFR + 1.18%), 2.55%, 11/08/32(a) | | | |
(1-day SOFR + 1.26%), 2.96%, 01/25/33(a) | | | |
(1-day SOFR + 1.45%), 5.30%, 07/24/29(a) | | | |
(1-day SOFR + 1.46%), 5.29%, 07/22/35(a)(e) | | | |
(1-day SOFR + 1.49%), 5.77%, 04/22/35(a) | | | |
(1-day SOFR + 1.58%), 3.33%, 04/22/52(a) | | | |
(1-day SOFR + 1.80%), 4.59%, 04/26/33(a) | | | |
(1-day SOFR + 1.81%), 6.25%, 10/23/34(a) | | | |
(1-day SOFR + 1.85%), 5.35%, 06/01/34(a) | | | |
(1-day SOFR + 1.89%), 2.18%, 06/01/28(a) | | | |
(1-day SOFR + 2.04%), 2.52%, 04/22/31(a) | | | |
(1-day SOFR + 2.08%), 4.91%, 07/25/33(a)(e) | | | |
(1-day SOFR + 2.44%), 3.11%, 04/22/51(a) | | | |
(1-day SOFR + 2.58%), 5.72%, 09/14/33(a) | | | |
(3-mo. CME Term SOFR + 1.11%), 1.76%, 11/19/31(a) | | | |
(3-mo. CME Term SOFR + 1.59%), 2.01%, 03/13/26(a) | | | |
(3-mo. CME Term SOFR + 1.64%), 3.96%, 11/15/48(a) | | | |
(3-mo. CME Term SOFR + 3.79%), 4.49%, 03/24/31(a) | | | |
KeyBank NA, Series BKNT, 3.90%, 04/13/29 | | | |
KeyBank NA/Cleveland OH, 5.00%, 01/26/33 | | | |
Lloyds Banking Group PLC(a) | | | |
(1-year CMT + 0.85%), 1.63%, 05/11/27 | | | |
(3-mo. LIBOR US + 1.21%), 3.57%, 11/07/28 | | | |
M&T Bank Corp., (1-day SOFR + 2.80%), 7.41%, 10/30/29(a) | | | |
Mitsubishi UFJ Financial Group, Inc.(a) | | | |
(1-year CMT + 0.83%), 2.34%, 01/19/28 | | | |
(1-year CMT + 1.38%), 5.42%, 02/22/29 | | | |
(1-year CMT + 1.50%), 5.54%, 04/17/26 | | | |
Mizuho Financial Group, Inc.(a) | | | |
(1-year CMT + 0.90%), 2.65%, 05/22/26(e) | | | |
(1-year CMT + 1.65%), 5.78%, 07/06/29 | | | |
(1-year CMT + 1.90%), 5.75%, 07/06/34 | | | |
| | | |
|
Mizuho Financial Group, Inc.(a) (continued) | | | |
(1-year CMT + 2.05%), 5.41%, 09/13/28 | | | |
| | | |
| | | |
| | | |
| | | |
(1-day SOFR + 0.88%), 1.59%, 05/04/27(a) | | | |
(1-day SOFR + 1.02%), 1.93%, 04/28/32(a) | | | |
(1-day SOFR + 1.03%), 1.79%, 02/13/32(a) | | | |
(1-day SOFR + 1.14%), 2.70%, 01/22/31(a) | | | |
(1-day SOFR + 1.18%), 2.24%, 07/21/32(a) | | | |
(1-day SOFR + 1.20%), 2.51%, 10/20/32(a) | | | |
(1-day SOFR + 1.22%), 5.04%, 07/19/30(a)(e) | | | |
(1-day SOFR + 1.26%), 5.66%, 04/18/30(a) | | | |
(1-day SOFR + 1.29%), 2.94%, 01/21/33(a) | | | |
(1-day SOFR + 1.30%), 5.05%, 01/28/27(a) | | | |
(1-day SOFR + 1.56%), 5.32%, 07/19/35(a) | | | |
(1-day SOFR + 1.58%), 5.83%, 04/19/35(a) | | | |
(1-day SOFR + 1.67%), 4.68%, 07/17/26(a) | | | |
(1-day SOFR + 1.73%), 5.47%, 01/18/35(a) | | | |
(1-day SOFR + 2.24%), 6.30%, 10/18/28(a) | | | |
(1-day SOFR + 2.56%), 6.34%, 10/18/33(a) | | | |
(1-day SOFR + 3.12%), 3.62%, 04/01/31(a) | | | |
(3-mo. CME Term SOFR + 1.40%), 3.77%, 01/24/29(a) | | | |
(5-year CMT + 2.43%), 5.95%, 01/19/38(a) | | | |
NatWest Group PLC, (3-mo. LIBOR US + 1.75%), 4.89%, 05/18/29(a) | | | |
PNC Financial Services Group, Inc.(a) | | | |
(1-day SOFR + 1.26%), 4.81%, 10/21/32 | | | |
(1-day SOFR + 1.32%), 5.81%, 06/12/26 | | | |
Regions Financial Corp., 2.25%, 05/18/25 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Santander Holdings USA, Inc.(a) | | | |
(1-day SOFR + 1.25%), 2.49%, 01/06/28 | | | |
(1-day SOFR + 2.33%), 5.81%, 09/09/26 | | | |
Santander U.K. Group Holdings PLC(a) | | | |
(1-day SOFR + 2.75%), 6.83%, 11/21/26 | | | |
(3-mo. LIBOR US + 1.40%), 3.82%, 11/03/28 | | | |
| | | |
(1-day SOFR + 2.60%), 2.90%, 03/30/26 | | | |
(3-mo. CME Term SOFR + 1.29%), 4.14%, 12/03/29 | | | |
Sumitomo Mitsui Financial Group, Inc., 1.47%, 07/08/25 | | | |
Toronto-Dominion Bank, 5.10%, 01/09/26 | | | |
| | | |
| | | |
| | | |
(1-day SOFR + 2.05%), 6.05%, 06/08/27(a) | | | |
(1-day SOFR + 2.36%), 5.87%, 06/08/34(a) | | | |
| | | |
(1-day SOFR + 1.86%), 5.68%, 01/23/35 | | | |
(1-day SOFR + 2.02%), 5.78%, 06/12/29 | | | |
| | | |
| | | |
| | | |
| | | |
UBS AG/Stamford CT, 5.00%, 07/09/27 | | | |
102024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
|
| | | |
| | | |
| | | |
(1-day SOFR + 1.07%), 5.71%, 04/22/28(a) | | | |
(1-day SOFR + 1.32%), 3.91%, 04/25/26(a) | | | |
(1-day SOFR + 1.51%), 3.53%, 03/24/28(a) | | | |
(1-day SOFR + 1.56%), 4.54%, 08/15/26(a) | | | |
(1-day SOFR + 1.78%), 5.50%, 01/23/35(a)(e) | | | |
(1-day SOFR + 1.98%), 4.81%, 07/25/28(a) | | | |
(1-day SOFR + 1.99%), 5.56%, 07/25/34(a) | | | |
(1-day SOFR + 2.00%), 2.19%, 04/30/26(a) | | | |
(1-day SOFR + 2.02%), 5.39%, 04/24/34(a) | | | |
(1-day SOFR + 2.06%), 6.49%, 10/23/34(a) | | | |
(1-day SOFR + 2.10%), 4.90%, 07/25/33(a) | | | |
(1-day SOFR + 2.13%), 4.61%, 04/25/53(a) | | | |
(1-day SOFR + 2.53%), 3.07%, 04/30/41(a) | | | |
(3-mo. CME Term SOFR + 1.43%), 2.88%, 10/30/30(a) | | | |
(3-mo. CME Term SOFR + 4.50%), 5.01%, 04/04/51(a) | | | |
Westpac Banking Corp., (5-year USD ICE Swap + 2.24%), 4.32%, 11/23/31(a) | | | |
| | | |
|
Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. | | | |
| | | |
| | | |
Anheuser-Busch InBev Worldwide, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Coca-Cola Femsa SAB de CV, 2.75%, 01/22/30 | | | |
Constellation Brands, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
PepsiCo, Inc., 3.88%, 03/19/60 | | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Biotechnology (continued) |
| | | |
| | | |
Biogen, Inc., 4.05%, 09/15/25 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Regeneron Pharmaceuticals, Inc. | | | |
| | | |
| | | |
Royalty Pharma PLC, 2.20%, 09/02/30 | | | |
| | | |
Building Materials — 0.1% |
Carrier Global Corp., 2.70%, 02/15/31 | | | |
Eagle Materials, Inc., 2.50%, 07/01/31 | | | |
Johnson Controls International PLC/Tyco Fire & Security Finance SCA, 1.75%, 09/15/30 | | | |
Martin Marietta Materials, Inc., 5.15%, 12/01/34 | | | |
Smyrna Ready Mix Concrete LLC, 8.88%, 11/15/31(b) | | | |
Trane Technologies Financing Ltd., 5.25%, 03/03/33 | | | |
| | | |
|
| | | |
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| | | |
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| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Patrick Industries, Inc., 6.38%, 11/01/32(b) | | | |
| | | |
|
Ameriprise Financial, Inc. | | | |
| | | |
| | | |
Apollo Global Management, Inc., 5.80%, 05/21/54 | | | |
| | | |
| | | |
| | | |
| | | |
Barings BDC, Inc., 3.30%, 11/23/26 | | | |
Blackstone Private Credit Fund, 3.25%, 03/15/27(e) | | | |
Blackstone Secured Lending Fund, 2.85%, 09/30/28 | | | |
Blue Owl Credit Income Corp., 4.70%, 02/08/27 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
(1-day SOFR + 1.88%), 6.20%, 11/17/29(a) | | | |
(1-day SOFR + 2.01%), 6.14%, 08/24/34(a) | | | |
(1-day SOFR + 2.50%), 5.85%, 05/19/34(a) | | | |
Schedule of Investments11
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Capital Markets (continued) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Golub Capital BDC, Inc., 6.00%, 07/15/29 | | | |
Invesco Finance PLC, 3.75%, 01/15/26 | | | |
Jefferies Financial Group, Inc. | | | |
| | | |
| | | |
Lazard Group LLC, 4.50%, 09/19/28 | | | |
Main Street Capital Corp. | | | |
| | | |
| | | |
Nomura Holdings, Inc., 5.10%, 07/03/25 | | | |
Sixth Street Specialty Lending, Inc., 6.13%, 03/01/29 | | | |
StoneX Group, Inc., 7.88%, 03/01/31(b) | | | |
Voya Financial, Inc., 3.65%, 06/15/26 | | | |
| | | |
|
Air Products and Chemicals, Inc., 4.85%, 02/08/34 | | | |
CVR Partners LP/CVR Nitrogen Finance Corp., 6.13%, 06/15/28(b) | | | |
DuPont de Nemours, Inc., 5.42%, 11/15/48 | | | |
| | | |
| | | |
| | | |
EIDP, Inc., 4.50%, 05/15/26 | | | |
LYB International Finance III LLC | | | |
| | | |
| | | |
| | | |
PPG Industries, Inc., 1.20%, 03/15/26 | | | |
Rain Carbon, Inc., 12.25%, 09/01/29(b)(e) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Commercial Services & Supplies — 0.4% |
California Institute of Technology | | | |
| | | |
| | | |
| | | |
Case Western Reserve University, Series 2022-C, 5.41%, 06/01/2122 | | | |
CoreCivic, Inc., 8.25%, 04/15/29 | | | |
Cornell University, 4.84%, 06/15/34 | | | |
Emory University, Series 2020, 2.14%, 09/01/30 | | | |
Equifax, Inc., 3.10%, 05/15/30 | | | |
Fortress Transportation and Infrastructure Investors | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Commercial Services & Supplies (continued) |
GEO Group, Inc. (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Massachusetts Institute of Technology, 3.96%, 07/01/38 | | | |
| | | |
| | | |
| | | |
President and Fellows of Harvard College, 2.52%, 10/15/50(e) | | | |
PROG Holdings, Inc., 6.00%, 11/15/29(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
University of Notre Dame du Lac, Series 2017, 3.39%, 02/15/48 | | | |
University of Southern California, 4.98%, 10/01/53(e) | | | |
| | | |
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| | | |
| | | |
| | | |
Communications Equipment — 0.0% |
| | | |
| | | |
| | | |
CommScope Technologies LLC, 5.00%, 03/15/27(b) | | | |
Juniper Networks, Inc., 5.95%, 03/15/41 | | | |
| | | |
Construction & Engineering — 0.0% |
Tutor Perini Corp., 11.88%, 04/30/29(b) | | | |
|
| | | |
| | | |
(1-day SOFR + 1.00%), 5.10%, 02/16/28(a) | | | |
(1-day SOFR + 1.33%), 6.34%, 10/30/26(a) | | | |
(1-day SOFR + 1.42%), 5.28%, 07/26/35(a) | | | |
(1-day SOFR + 1.76%), 4.42%, 08/03/33(a) | | | |
(1-day SOFR + 1.84%), 5.04%, 05/01/34(a) | | | |
(1-day SOFR + 1.93%), 5.63%, 07/28/34(a) | | | |
Bread Financial Holdings, Inc., 9.75%, 03/15/29(b) | | | |
Capital One Financial Corp.(a) | | | |
(1-day SOFR + 1.56%), 5.46%, 07/26/30 | | | |
(1-day SOFR + 2.26%), 6.05%, 02/01/35 | | | |
(1-day SOFR + 2.37%), 5.27%, 05/10/33 | | | |
(1-day SOFR + 2.44%), 7.15%, 10/29/27 | | | |
(1-day SOFR + 2.64%), 6.31%, 06/08/29 | | | |
| | | |
| | | |
122024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Consumer Finance (continued) |
goeasy Ltd.(b) (continued) | | | |
| | | |
| | | |
| | | |
| | | |
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| | | |
| | | |
Synchrony Financial, 7.25%, 02/02/33 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Consumer Staples Distribution & Retail — 0.1% |
Dollar General Corp., 5.20%, 07/05/28 | | | |
| | | |
| | | |
| | | |
Walgreens Boots Alliance, Inc., 8.13%, 08/15/29 | | | |
| | | |
| | | |
| | | |
| | | |
Containers & Packaging — 0.1% |
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC, 4.00%, 09/01/29(b) | | | |
Packaging Corp. of America | | | |
| | | |
| | | |
WRKCo, Inc., 3.00%, 06/15/33 | | | |
| | | |
|
WW Grainger, Inc., 4.45%, 09/15/34 | | | |
|
| | | |
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| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Brixmor Operating Partnership LP, 4.05%, 07/01/30 | | | |
Brookfield Capital Finance LLC, 6.09%, 06/14/33 | | | |
| | | |
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| | | |
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| | | |
| | | |
Diversified REITs (continued) |
Crown Castle, Inc. (continued) | | | |
| | | |
| | | |
| | | |
Equinix Europe 2 Financing Corp. LLC, 5.50%, 06/15/34 | | | |
| | | |
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| | | |
| | | |
| | | |
GLP Capital LP/GLP Financing II, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Host Hotels & Resorts LP, Series F, 4.50%, 02/01/26 | | | |
Kimco Realty OP LLC, 2.80%, 10/01/26 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Rithm Capital Corp., 8.00%, 04/01/29(b) | | | |
Uniti Group LP / Uniti Group Finance 2019 Inc / CSL | | | |
| | | |
| | | |
| | | |
| | | |
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| | | |
| | | |
VICI Properties LP/VICI Note Co., Inc.(b) | | | |
| | | |
| | | |
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| | | |
| | | |
Diversified Telecommunication Services — 1.0% |
| | | |
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| | | |
| | | |
British Telecommunications PLC, 9.63%, 12/15/30 | | | |
| | | |
| | | |
| | | |
Deutsche Telekom International Finance BV, 9.25%, 06/01/32 | | | |
Schedule of Investments13
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Diversified Telecommunication Services (continued) |
Frontier Communications Holdings LLC, 6.75%, 05/01/29(b) | | | |
Level 3 Financing, Inc.(b) | | | |
| | | |
| | | |
Lumen Technologies, Inc., 10.00%, 10/15/32(b)(e) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sprint Capital Corp., 8.75%, 03/15/32 | | | |
TELUS Corp., 2.80%, 02/16/27 | | | |
Verizon Communications, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Windstream Escrow LLC/Windstream Escrow Finance Corp., 8.25%, 10/01/31(b) | | | |
Windstream Services LLC / Windstream Escrow Finance Corp., 7.75%, 08/15/28(b) | | | |
| | | |
Electric Utilities — 2.3% |
| | | |
| | | |
| | | |
| | | |
| | | |
Series G, 4.15%, 05/01/49 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series M, 3.65%, 04/01/50 | | | |
Series O, 4.50%, 06/15/52 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Algonquin Power & Utilities Corp., 5.37%, 06/15/26(g) | | | |
Ameren Corp., 5.70%, 12/01/26 | | | |
| | | |
| | | |
| | | |
Appalachian Power Co., Series BB, 4.50%, 08/01/32 | | | |
Arizona Public Service Co. | | | |
| | | |
| | | |
| | | |
Electric Utilities (continued) |
Baltimore Gas and Electric Co. | | | |
| | | |
| | | |
| | | |
| | | |
Berkshire Hathaway Energy Co. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Black Hills Corp., 6.00%, 01/15/35 | | | |
CenterPoint Energy Houston Electric LLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series AJ, 4.85%, 10/01/52 | | | |
CenterPoint Energy, Inc., 1.45%, 06/01/26 | | | |
Commonwealth Edison Co., 5.65%, 06/01/54 | | | |
Consolidated Edison Co. of New York, Inc. | | | |
| | | |
| | | |
Series 2006-A, 5.85%, 03/15/36 | | | |
Constellation Energy Generation LLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Dominion Energy South Carolina, Inc., 6.25%, 10/15/53 | | | |
| | | |
Series A, 4.35%, 08/15/32 | | | |
Series B, 5.95%, 06/15/35 | | | |
| | | |
| | | |
Series B, 3.65%, 03/01/52 | | | |
DTE Energy Co., 4.88%, 06/01/28 | | | |
Duke Energy Carolinas LLC | | | |
| | | |
| | | |
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| | | |
| | | |
Duke Energy Indiana LLC, 5.40%, 04/01/53 | | | |
Duke Energy Ohio, Inc., 5.65%, 04/01/53 | | | |
142024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Electric Utilities (continued) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Entergy Arkansas LLC, 5.75%, 06/01/54 | | | |
Entergy Corp., 2.80%, 06/15/30 | | | |
Entergy Louisiana LLC, 4.20%, 09/01/48 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Evergy Kansas Central, Inc. | | | |
| | | |
| | | |
Evergy Metro, Inc., 5.40%, 04/01/34 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series B, 3.90%, 07/15/27 | | | |
Series C, 4.85%, 07/15/47 | | | |
Series C, 3.40%, 03/01/50 | | | |
FirstEnergy Transmission LLC(b) | | | |
| | | |
| | | |
Florida Power & Light Co. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series 2010-C, 4.75%, 09/01/40 | | | |
Series B, 3.70%, 01/30/50 | | | |
Idaho Power Co., 5.80%, 04/01/54 | | | |
Indiana Michigan Power Co., 5.63%, 04/01/53 | | | |
Interstate Power and Light Co. | | | |
| | | |
| | | |
Johnsonville Aeroderivative Combustion Turbine Generation LLC, 5.08%, 10/01/54 | | | |
Kentucky Utilities Co., 3.30%, 06/01/50 | | | |
| | | |
| | | |
| | | |
Electric Utilities (continued) |
MidAmerican Energy Co. (continued) | | | |
| | | |
| | | |
National Grid PLC, 5.42%, 01/11/34 | | | |
National Rural Utilities Cooperative Finance Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series CC, 3.70%, 05/01/29 | | | |
NextEra Energy Capital Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Northern States Power Co. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
NSTAR Electric Co., 4.95%, 09/15/52 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series P, 2.60%, 04/01/30 | | | |
Series Q, 1.63%, 01/15/31 | | | |
Series R, 2.90%, 10/01/51 | | | |
Oklahoma Gas and Electric Co. | | | |
| | | |
| | | |
Oncor Electric Delivery Co. LLC | | | |
| | | |
| | | |
| | | |
Pacific Gas and Electric Co. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments15
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Electric Utilities (continued) |
PECO Energy Co. (continued) | | | |
| | | |
| | | |
Potomac Electric Power Co., 5.20%, 03/15/34 | | | |
PPL Capital Funding, Inc., 5.25%, 09/01/34 | | | |
PPL Electric Utilities Corp. | | | |
| | | |
| | | |
Public Service Co. of Colorado | | | |
| | | |
| | | |
| | | |
Series 39, 4.50%, 06/01/52 | | | |
Public Service Electric and Gas Co. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Public Service Enterprise Group, Inc., 2.45%, 11/15/31 | | | |
| | | |
| | | |
| | | |
San Diego Gas & Electric Co. | | | |
| | | |
Series VVV, 1.70%, 10/01/30 | | | |
| | | |
Sierra Pacific Power Co., 5.90%, 03/15/54 | | | |
Southern California Edison Co. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series 05-B, 5.55%, 01/15/36 | | | |
Series 05-E, 5.35%, 07/15/35 | | | |
Series 06-E, 5.55%, 01/15/37 | | | |
Series A, 4.20%, 03/01/29 | | | |
Series G, 2.50%, 06/01/31 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series 2021-A, (5-year CMT + 2.92%), 3.75%, 09/15/51(a) | | | |
Series B, (5-year CMT + 3.73%), 4.00%, 01/15/51(a) | | | |
Southwestern Electric Power Co. | | | |
| | | |
Series M, 4.10%, 09/15/28 | | | |
Tampa Electric Co., 4.90%, 03/01/29 | | | |
Tucson Electric Power Co., 5.50%, 04/15/53 | | | |
| | | |
Electric Utilities (continued) |
| | | |
| | | |
| | | |
Virginia Electric and Power Co. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Series A, 3.80%, 04/01/28 | | | |
Series B, 3.75%, 05/15/27 | | | |
Vistra Operations Co. LLC, 6.00%, 04/15/34(b) | | | |
WEC Energy Group, Inc., 5.60%, 09/12/26 | | | |
Wisconsin Electric Power Co., 5.05%, 10/01/54 | | | |
Wisconsin Power and Light Co., 3.95%, 09/01/32 | | | |
| | | |
| | | |
| | | |
| | | |
Electronic Equipment, Instruments & Components — 0.2% |
Amphenol Corp., 2.20%, 09/15/31 | | | |
Arrow Electronics, Inc., 3.88%, 01/12/28 | | | |
Avnet, Inc., 6.25%, 03/15/28 | | | |
CDW LLC/CDW Finance Corp. | | | |
| | | |
| | | |
Emerson Electric Co., 2.00%, 12/21/28 | | | |
Honeywell International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Jabil, Inc., 4.25%, 05/15/27 | | | |
Keysight Technologies, Inc., 4.95%, 10/15/34(e) | | | |
TD SYNNEX Corp., 1.75%, 08/09/26 | | | |
Xerox Holdings Corp., 5.50%, 08/15/28(b) | | | |
| | | |
Energy Equipment & Services(b) — 0.0% |
Helix Energy Solutions Group, Inc., 9.75%, 03/01/29 | | | |
USA Compression Partners LP/USA Compression Finance Corp., 7.13%, 03/15/29 | | | |
| | | |
|
Warnermedia Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Environmental, Maintenance & Security Service — 0.1% |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
162024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Environmental, Maintenance & Security Service (continued) |
Waste Connections, Inc. (continued) | | | |
| | | |
Waste Management, Inc., 4.95%, 07/03/31 | | | |
| | | |
Financial Services — 0.2% |
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | | | |
| | | |
| | | |
Air Lease Corp., 3.63%, 12/01/27 | | | |
| | | |
(1-day SOFR + 2.82%), 6.85%, 01/03/30 | | | |
(1-day SOFR + 3.26%), 6.99%, 06/13/29 | | | |
Burford Capital Global Finance LLC(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Credit Acceptance Corp., 9.25%, 12/15/28(b) | | | |
Freedom Mortgage Holdings LLC, 9.25%, 02/01/29(b) | | | |
Intercontinental Exchange, Inc. | | | |
| | | |
| | | |
| | | |
LD Holdings Group LLC, 8.75%, 11/01/27(b) | | | |
| | | |
| | | |
| | | |
Nationstar Mortgage Holdings, Inc., 6.50%, 08/01/29(b) | | | |
ONEMAIN FINANCE Corp., 6.63%, 05/15/29 | | | |
ORIX Corp., 5.20%, 09/13/32 | | | |
PennyMac Financial Services, Inc., 7.13%, 11/15/30(b) | | | |
| | | |
|
Archer-Daniels-Midland Co. | | | |
| | | |
| | | |
Hershey Co., 2.30%, 08/15/26 | | | |
| | | |
| | | |
| | | |
JBS USA Holding Lux SARL/JBS USA Food Co./JBS Lux Co. SARL, 5.75%, 04/01/33 | | | |
Kraft Heinz Foods Co., 5.20%, 07/15/45 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
MHP Lux SA, 6.25%, 09/19/29(b) | | | |
Sysco Corp., 3.25%, 07/15/27 | | | |
United Natural Foods, Inc., 6.75%, 10/15/28(b) | | | |
| | | |
|
AmeriGas Partners LP/AmeriGas Finance Corp., 9.38%, 06/01/28(b) | | | |
| | | |
| | | |
| | | |
Gas Utilities (continued) |
Atmos Energy Corp. (continued) | | | |
| | | |
CenterPoint Energy Resources Corp., 4.40%, 07/01/32 | | | |
National Fuel Gas Co., 5.50%, 01/15/26 | | | |
| | | |
| | | |
| | | |
| | | |
Piedmont Natural Gas Co., Inc. | | | |
| | | |
| | | |
| | | |
Southern California Gas Co. | | | |
| | | |
| | | |
Southern Co. Gas Capital Corp. | | | |
| | | |
| | | |
Series 20-A, 1.75%, 01/15/31 | | | |
| | | |
| | | |
| | | |
| | | |
Ground Transportation — 0.3% |
Burlington Northern Santa Fe LLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Canadian National Railway Co. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Health Care Equipment & Supplies — 0.1% |
Abbott Laboratories, 4.90%, 11/30/46 | | | |
Agilent Technologies, Inc. | | | |
| | | |
| | | |
Bausch & Lomb Corp., 8.38%, 10/01/28(b) | | | |
Baxter International, Inc. | | | |
| | | |
| | | |
Boston Scientific Corp., 2.65%, 06/01/30 | | | |
Schedule of Investments17
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Health Care Equipment & Supplies (continued) |
Revvity, Inc., 3.30%, 09/15/29 | | | |
Solventum Corp., 6.00%, 05/15/64(b) | | | |
Thermo Fisher Scientific, Inc., 5.09%, 08/10/33 | | | |
Zimmer Biomet Holdings, Inc., 5.35%, 12/01/28(e) | | | |
| | | |
Health Care Providers & Services — 1.0% |
Adventist Health System, 5.43%, 03/01/32(e) | | | |
Allina Health System, Series 2019, 3.89%, 04/15/49 | | | |
Baylor Scott & White Holdings, 4.19%, 11/15/45 | | | |
Centene Corp., 4.63%, 12/15/29 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Dignity Health, 4.50%, 11/01/42(e) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hackensack Meridian Health, Inc., Series 2020, 2.68%, 09/01/41 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
IQVIA, Inc., 6.25%, 02/01/29 | | | |
Kaiser Foundation Hospitals | | | |
| | | |
| | | |
Memorial Sloan-Kettering Cancer Center, Series 2020, 2.96%, 01/01/50 | | | |
Mount Nittany Medical Center Obligated Group, Series 2022, 3.80%, 11/15/52 | | | |
Nationwide Children’s Hospital, Inc., 4.56%, 11/01/52 | | | |
Northwell Healthcare, Inc., 3.81%, 11/01/49(e) | | | |
Novant Health, Inc., 2.64%, 11/01/36 | | | |
Providence St Joseph Health Obligated Group, Series A, 3.93%, 10/01/48(e) | | | |
| | | |
Health Care Providers & Services (continued) |
| | | |
| | | |
| | | |
Sutter Health, 5.55%, 08/15/53 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Universal Health Services, Inc., 5.05%, 10/15/34 | | | |
| | | |
|
Alexandria Real Estate Equities, Inc. | | | |
| | | |
| | | |
Healthpeak OP LLC, 4.00%, 06/01/25 | | | |
MPT Operating Partnership LP/MPT Finance Corp. | | | |
| | | |
| | | |
Omega Healthcare Investors, Inc., 3.38%, 02/01/31 | | | |
| | | |
| | | |
| | | |
Welltower OP LLC, 3.85%, 06/15/32 | | | |
| | | |
Hotels, Restaurants & Leisure — 0.3% |
| | | |
| | | |
| | | |
| | | |
Genting New York LLC/GENNY Capital, Inc., 7.25%, 10/01/29(b) | | | |
Hyatt Hotels Corp., 5.75%, 01/30/27 | | | |
Marriott International, Inc. | | | |
| | | |
| | | |
| | | |
Series HH, 2.85%, 04/15/31 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Starbucks Corp., 4.80%, 02/15/33 | | | |
| | | |
Household Durables — 0.2% |
K Hovnanian Enterprises, Inc., 11.75%, 09/30/29(b) | | | |
Lennar Corp., 4.75%, 11/29/27 | | | |
MDC Holdings, Inc., 3.97%, 08/06/61(e) | | | |
NVR, Inc., 3.00%, 05/15/30 | | | |
PulteGroup, Inc., 5.50%, 03/01/26 | | | |
Whirlpool Corp., 4.75%, 02/26/29 | | | |
| | | |
Household Products — 0.0% |
Kimberly-Clark Corp., 2.88%, 02/07/50 | | | |
Independent Power and Renewable Electricity Producers — 0.1% |
Continuum Energy Pte. Ltd., 5.00%, 09/11/27(a)(d) | | | |
182024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Independent Power and Renewable Electricity Producers (continued) |
FIEMEX Energia - Banco Actinver SA Institucion de Banca Multiple, 7.25%, 01/31/41(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Industrial Conglomerates — 0.0% |
| | | |
Eaton Corp., 4.00%, 11/02/32 | | | |
Textron, Inc., 2.45%, 03/15/31 | | | |
| | | |
|
Aflac, Inc., 4.75%, 01/15/49 | | | |
Alleghany Corp., 3.63%, 05/15/30 | | | |
| | | |
| | | |
| | | |
American International Group, Inc. | | | |
| | | |
| | | |
| | | |
Aon Corp./Aon Global Holdings PLC, 3.90%, 02/28/52 | | | |
Aon North America, Inc., 5.75%, 03/01/54 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Assured Guaranty U.S. Holdings, Inc., 6.13%, 09/15/28 | | | |
Athene Holding Ltd., 3.95%, 05/25/51 | | | |
Berkshire Hathaway Finance Corp. | | | |
| | | |
| | | |
Brighthouse Financial, Inc., 3.85%, 12/22/51 | | | |
Brown & Brown, Inc., 4.95%, 03/17/52 | | | |
Corebridge Financial, Inc. | | | |
| | | |
| | | |
Enstar Group Ltd., 3.10%, 09/01/31 | | | |
Everest Reinsurance Holdings, Inc., 3.50%, 10/15/50 | | | |
Fairfax Financial Holdings Ltd. | | | |
| | | |
| | | |
Fidelity National Financial, Inc., 3.20%, 09/17/51 | | | |
| | | |
| | | |
| | | |
Manulife Financial Corp., 2.48%, 05/19/27 | | | |
Markel Group, Inc., 6.00%, 05/16/54 | | | |
Marsh & McLennan Cos., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
Principal Financial Group, Inc. | | | |
| | | |
| | | |
Progressive Corp., 3.70%, 03/15/52 | | | |
Prudential Funding Asia PLC, 3.13%, 04/14/30 | | | |
RenaissanceRe Holdings Ltd., 5.75%, 06/05/33 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Willis North America, Inc., 5.90%, 03/05/54 | | | |
| | | |
Internet Software & Services — 0.4% |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Booking Holdings, Inc., 3.55%, 03/15/28 | | | |
Cogent Communications Group, Inc., 7.00%, 06/15/27(b) | | | |
Cogent Communications Group, Inc./Cogent Communications Finance, Inc., 7.00%, 06/15/27(b) | | | |
eBay, Inc., 2.70%, 03/11/30 | | | |
Expedia Group, Inc., 4.63%, 08/01/27 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Netflix, Inc., 5.40%, 08/15/54 | | | |
| | | |
| | | |
| | | |
Uber Technologies, Inc., 5.35%, 09/15/54 | | | |
VeriSign, Inc., 2.70%, 06/15/31 | | | |
| | | |
|
Accenture Capital, Inc., 4.50%, 10/04/34 | | | |
Broadridge Financial Solutions, Inc. | | | |
| | | |
| | | |
Dye & Durham Ltd., 8.63%, 04/15/29(b) | | | |
Fidelity National Information Services, Inc., 1.15%, 03/01/26 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments19
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
|
| | | |
| | | |
| | | |
IBM International Capital Pte. Ltd., 5.30%, 02/05/54 | | | |
International Business Machines Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Leidos, Inc., 3.63%, 05/15/25 | | | |
| | | |
|
Amer Sports Co., 6.75%, 02/16/31(b)(e) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Caterpillar Financial Services Corp., 5.40%, 03/10/25 | | | |
Caterpillar, Inc., 3.25%, 09/19/49 | | | |
CNH Industrial Capital LLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Otis Worldwide Corp., 2.57%, 02/15/30 | | | |
Stanley Black & Decker, Inc. | | | |
| | | |
| | | |
Terex Corp., 6.25%, 10/15/32(b) | | | |
Westinghouse Air Brake Technologies Corp., 5.61%, 03/11/34 | | | |
Xylem, Inc./New York, 3.25%, 11/01/26 | | | |
| | | |
|
Cable One, Inc., 4.00%, 11/15/30(b)(e) | | | |
CCO Holdings LLC/CCO Holdings Capital Corp.(b) | | | |
| | | |
| | | |
Charter Communications Operating LLC/Charter Communications Operating Capital | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Comcast Corp. (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Directv Financing LLC, 8.88%, 02/01/30(b) | | | |
Directv Financing LLC/Directv Financing Co-Obligor, Inc., 5.88%, 08/15/27(b) | | | |
Discovery Communications LLC, 3.95%, 03/20/28 | | | |
FactSet Research Systems, Inc. | | | |
| | | |
| | | |
Fox Corp., 3.05%, 04/07/25 | | | |
Nexstar Media, Inc., 4.75%, 11/01/28(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
TEGNA, Inc., 4.63%, 03/15/28 | | | |
Time Warner Cable LLC, 4.50%, 09/15/42 | | | |
Univision Communications, Inc., 8.00%, 08/15/28(b) | | | |
| | | |
|
Anglo American Capital PLC, 5.63%, 04/01/30(b) | | | |
BHP Billiton Finance USA Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Cleveland-Cliffs, Inc., 7.38%, 05/01/33(b) | | | |
Freeport-McMoRan, Inc., 5.45%, 03/15/43 | | | |
| | | |
| | | |
| | | |
Kinross Gold Corp., 4.50%, 07/15/27 | | | |
Mineral Resources Ltd., 9.25%, 10/01/28(b) | | | |
Nucor Corp., 3.13%, 04/01/32 | | | |
Precision Castparts Corp., 3.25%, 06/15/25 | | | |
| | | |
| | | |
| | | |
Rio Tinto Finance USA Ltd., 2.75%, 11/02/51 | | | |
Rio Tinto Finance USA PLC | | | |
| | | |
| | | |
Samarco Mineracao SA, (9.00% PIK), 9.00%, 06/30/31(f)(h) | | | |
Southern Copper Corp., 5.25%, 11/08/42 | | | |
Steel Dynamics, Inc., 3.25%, 10/15/50(e) | | | |
SunCoke Energy, Inc., 4.88%, 06/30/29(b) | | | |
Taseko Mines Ltd., 8.25%, 05/01/30(b) | | | |
Vale Overseas Ltd., 6.40%, 06/28/54 | | | |
Volcan Cia Minera SAA, 8.75%, 01/24/30(b) | | | |
| | | |
Mortgage Real Estate Investment Trusts (REITs) — 0.0% |
Starwood Property Trust, Inc., 7.25%, 04/01/29(b) | | | |
202024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
|
Boston Properties LP, 2.45%, 10/01/33 | | | |
Oil, Gas & Consumable Fuels — 3.4% |
Antero Resources Corp.(b) | | | |
| | | |
| | | |
Apache Corp., 4.75%, 04/15/43 | | | |
Boardwalk Pipelines LP, 5.95%, 06/01/26 | | | |
BP Capital Markets America, Inc., 3.06%, 06/17/41 | | | |
California Resources Corp., 8.25%, 06/15/29(b) | | | |
Calumet Specialty Products Partners LP/Calumet Finance Corp., 9.75%, 07/15/28(b)(e) | | | |
| | | |
| | | |
| | | |
Canadian Natural Resources Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Cheniere Corpus Christi Holdings LLC | | | |
| | | |
| | | |
| | | |
Cheniere Energy Partners LP | | | |
| | | |
| | | |
| | | |
Cheniere Energy, Inc., 5.65%, 04/15/34 | | | |
Chevron Corp., 3.33%, 11/17/25 | | | |
| | | |
| | | |
| | | |
Civitas Resources, Inc.(b) | | | |
| | | |
| | | |
Comstock Resources, Inc., 6.75%, 03/01/29(b) | | | |
ConocoPhillips, 5.90%, 05/15/38 | | | |
| | | |
| | | |
| | | |
Continental Resources, Inc., 4.90%, 06/01/44 | | | |
CVR Energy, Inc., 8.50%, 01/15/29(b) | | | |
Delek Logistics Partners LP/Delek Logistics Finance Corp., 8.63%, 03/15/29(b) | | | |
| | | |
| | | |
| | | |
Diamond Foreign Asset Co./Diamond Finance LLC, 8.50%, 10/01/30(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Eastern Energy Gas Holdings LLC, 5.65%, 10/15/54 | | | |
| | | |
Oil, Gas & Consumable Fuels (continued) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
EnLink Midstream Partners LP, 4.85%, 07/15/26 | | | |
Enterprise Products Operating LLC, 6.45%, 09/01/40 | | | |
EQM Midstream Partners LP, 4.50%, 01/15/29(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Global Partners LP/GLP Finance Corp., 8.25%, 01/15/32(b) | | | |
Gran Tierra Energy, Inc., 9.50%, 10/15/29(b) | | | |
Greenfire Resources Ltd., 12.00%, 10/01/28(b)(e) | | | |
Gulfport Energy Operating Corp., 6.75%, 09/01/29(b) | | | |
| | | |
| | | |
| | | |
HF Sinclair Corp., 5.88%, 04/01/26 | | | |
Ithaca Energy North Sea PLC, 8.13%, 10/15/29(b)(e) | | | |
Kinder Morgan Energy Partners LP | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Marathon Oil Corp., 5.70%, 04/01/34 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments21
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Oil, Gas & Consumable Fuels (continued) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
New Fortress Energy, Inc.(b) | | | |
| | | |
| | | |
NGPL PipeCo LLC, 3.25%, 07/15/31(b) | | | |
Noble Finance II LLC, 8.00%, 04/15/30(b) | | | |
Northern Oil & Gas, Inc., 8.13%, 03/01/28(b)(e) | | | |
Occidental Petroleum Corp. | | | |
| | | |
| | | |
Oleoducto Central SA, 4.00%, 07/14/27(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ovintiv, Inc., 7.10%, 07/15/53 | | | |
Patterson-UTI Energy, Inc., 5.15%, 11/15/29 | | | |
PBF Holding Co. LLC/PBF Finance Corp., 7.88%, 09/15/30(b)(e) | | | |
Petroleos de Venezuela SA, 9.75%, 05/17/35(h)(i)(j) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Plains All American Pipeline LP/PAA Finance Corp. | | | |
| | | |
| | | |
| | | |
| | | |
Sabine Pass Liquefaction LLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Saturn Oil & Gas, Inc., 9.63%, 06/15/29(b)(e) | | | |
Shell Finance U.S., Inc., 4.00%, 05/10/46 | | | |
Shell International Finance BV | | | |
| | | |
| | | |
South Bow USA Infrastructure Holdings LLC(b) | | | |
| | | |
| | | |
| | | |
Oil, Gas & Consumable Fuels (continued) |
Talos Production, Inc.(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp. | | | |
| | | |
| | | |
| | | |
| | | |
TotalEnergies Capital International SA | | | |
| | | |
| | | |
TotalEnergies Capital SA, 5.49%, 04/05/54 | | | |
TransCanada PipeLines Ltd., 7.63%, 01/15/39 | | | |
| | | |
| | | |
| | | |
| | | |
Valaris Ltd., 8.38%, 04/30/30(b) | | | |
Venture Global LNG, Inc.(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Western Midstream Operating LP, 5.25%, 02/01/50 | | | |
Williams Cos., Inc., 5.80%, 11/15/43 | | | |
YPF SA, 9.50%, 01/17/31(b) | | | |
| | | |
Passenger Airlines — 0.1% |
A/S Mileage Plan IP Ltd., 5.31%, 10/20/31(b) | | | |
American Airlines, Inc., 8.50%, 05/15/29(b) | | | |
Azul Secured Finance LLP, 11.93%, 08/28/28(b) | | | |
Gol Finance SA, (1-mo. Term SOFR + 10.50%), 15.19%, 01/29/25(a)(b) | | | |
JetBlue Airways Corp./JetBlue Loyalty LP, 9.88%, 09/20/31(b) | | | |
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., 6.50%, 06/20/27(b) | | | |
United Airlines Pass-Through Trust | | | |
Series 2019-1, Class AA, 4.15%, 02/25/33 | | | |
Series 2024-A, 5.88%, 08/15/38 | | | |
| | | |
Personal Care Products — 0.0% |
Colgate-Palmolive Co., 3.70%, 08/01/47 | | | |
Estee Lauder Cos., Inc., 2.38%, 12/01/29 | | | |
Kenvue, Inc., 5.05%, 03/22/53 | | | |
Procter & Gamble Co., 3.60%, 03/25/50 | | | |
| | | |
|
| | | |
| | | |
222024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Pharmaceuticals (continued) |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Astrazeneca Finance LLC, 1.75%, 05/28/28 | | | |
AstraZeneca PLC, 6.45%, 09/15/37 | | | |
Bausch Health Cos., Inc.(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Cencora, Inc., 2.70%, 03/15/31 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
GlaxoSmithKline Capital, Inc., 6.38%, 05/15/38 | | | |
| | | |
| | | |
| | | |
| | | |
McKesson Corp., 0.90%, 12/03/25 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mylan, Inc., 4.55%, 04/15/28 | | | |
Novartis Capital Corp., 2.75%, 08/14/50 | | | |
Organon & Co./Organon Foreign Debt Co-Issuer BV, 7.88%, 05/15/34(b)(e) | | | |
Pfizer Investment Enterprises Pte. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Takeda Pharmaceutical Co. Ltd., 2.05%, 03/31/30 | | | |
| | | |
Pharmaceuticals (continued) |
Viatris, Inc., 2.30%, 06/22/27 | | | |
| | | |
| | | |
| | | |
| | | |
Real Estate Management & Development — 0.0% |
CBRE Services, Inc., 2.50%, 04/01/31 | | | |
|
ERP Operating LP, 4.65%, 09/15/34 | | | |
Invitation Homes Operating Partnership LP, 5.50%, 08/15/33 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Semiconductors & Semiconductor Equipment — 0.4% |
Advanced Micro Devices, Inc., 4.39%, 06/01/52 | | | |
| | | |
| | | |
| | | |
| | | |
Ap Grange Holdings LLC, (Acquired: 07/21/24, Cost: $255,458), 6.50%, 03/20/45(d)(k) | | | |
Broadcom Corp./Broadcom Cayman Finance Ltd., 3.50%, 01/15/28 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Lam Research Corp., 3.13%, 06/15/60 | | | |
| | | |
| | | |
Schedule of Investments23
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Semiconductors & Semiconductor Equipment (continued) |
Marvell Technology, Inc. (continued) | | | |
| | | |
Microchip Technology, Inc., 4.25%, 09/01/25 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
NXP BV/NXP Funding LLC/NXP USA, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
QUALCOMM, Inc., 3.45%, 05/20/25 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
|
Concentrix Corp., 6.60%, 08/02/28 | | | |
Electronic Arts, Inc., 2.95%, 02/15/51 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
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|
| | | |
| | | |
| | | |
| | | |
|
CubeSmart LP, 2.25%, 12/15/28 | | | |
| | | |
| | | |
| | | |
| | | |
Iron Mountain, Inc., 7.00%, 02/15/29(b) | | | |
Public Storage Operating Co. | | | |
| | | |
| | | |
| | | |
|
Academy Ltd., 6.00%, 11/15/27(b) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bath & Body Works, Inc., 6.88%, 11/01/35 | | | |
FirstCash, Inc., 6.88%, 03/01/32(b) | | | |
Foot Locker, Inc., 4.00%, 10/01/29(b)(e) | | | |
O’Reilly Automotive, Inc., 4.20%, 04/01/30 | | | |
| | | |
Technology Hardware, Storage & Peripherals — 0.2% |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Dell International LLC/EMC Corp. | | | |
| | | |
| | | |
| | | |
| | | |
Hewlett Packard Enterprise Co., 5.25%, 07/01/28 | | | |
NCR Atleos Corp., 9.50%, 04/01/29(b) | | | |
NetApp, Inc., 1.88%, 06/22/25 | | | |
| | | |
Textiles, Apparel & Luxury Goods — 0.1% |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Wolverine World Wide, Inc., 4.00%, 08/15/29(b) | | | |
| | | |
|
| | | |
| | | |
242024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
|
Altria Group, Inc. (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
BAT International Finance PLC, 1.67%, 03/25/26 | | | |
Philip Morris International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Reynolds American, Inc., 5.85%, 08/15/45 | | | |
| | | |
Transportation Infrastructure — 0.0% |
| | | |
| | | |
| | | |
| | | |
United Parcel Service, Inc., 5.30%, 04/01/50 | | | |
| | | |
|
American Water Capital Corp. | | | |
| | | |
| | | |
| | | |
| | | |
Essential Utilities, Inc., 5.38%, 01/15/34 | | | |
| | | |
Wireless Telecommunication Services — 0.5% |
Colombia Telecomunicaciones SA ESP, 4.95%, 07/17/30(b) | | | |
Rogers Communications, Inc. | | | |
| | | |
| | | |
Sprint LLC, 7.63%, 03/01/26 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Wireless Telecommunication Services (continued) |
T-Mobile U.S., Inc. (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
VF Ukraine PAT via VFU Funding PLC, 6.20%, 02/11/25(b) | | | |
Vodafone Group PLC, 6.25%, 11/30/32 | | | |
| | | |
Total Corporate Bonds — 27.8%
(Cost: $261,631,199) | |
Foreign Agency Obligations |
| |
Argentine Republic Government International Bond | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Kingdom of Belgium Government Bond, Series 98, 3.30%, 06/22/54(b)(h) | | | |
| |
Brazil Notas do Tesouro Nacional | | | |
| | | |
| | | |
| | | |
Brazilian Government International Bond, 6.13%, 03/15/34 | | | |
| | | |
| |
Bulgaria Government International Bond, 5.00%, 03/05/37(h) | | | |
| |
Canada Government International Bond, 2.88%, 04/28/25 | | | |
Province of Alberta Canada, 1.30%, 07/22/30 | | | |
Province of Ontario Canada | | | |
| | | |
| | | |
Province of Quebec Canada | | | |
| | | |
| | | |
| | | |
| | | |
Series PD, 7.50%, 09/15/29 | | | |
| | | |
| |
Chile Government International Bond | | | |
| | | |
| | | |
| | | |
Schedule of Investments25
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
| |
| | | |
Series B, 5.75%, 11/03/27 | | | |
Series B, 6.00%, 04/28/28 | | | |
Series B, 7.00%, 03/26/31 | | | |
| | | |
| |
Czech Republic Government Bond | | | |
Series 105, 2.75%, 07/23/29 | | | |
Series 150, 5.00%, 09/30/30 | | | |
Series 49, 4.20%, 12/04/36(h) | | | |
| | | |
Dominican Republic — 0.0% | |
Dominican Republic International Bond, 5.95%, 01/25/27(h) | | | |
| |
Ecuador Government International Bond(g)(h) | | | |
| | | |
| | | |
| | | |
| |
Egypt Government Bond, Series 3Y, 24.46%, 10/01/27 | | | |
Egypt Government International Bond, 4.75%, 04/16/26(h) | | | |
| | | |
| |
French Republic Government Bond OAT, 3.00%, 05/25/54(b)(h) | | | |
| |
Ghana Government International Bond, 6.00%, 07/03/35(b)(g) | | | |
| |
Guatemala Government Bond, 4.88%, 02/13/28(h) | | | |
| |
Hungary Government International Bond, Series 10Y, 5.38%, 09/12/33(h) | | | |
| |
Indonesia Government International Bond | | | |
| | | |
| | | |
| | | |
| |
Israel Government International Bond, 5.75%, 03/12/54 | | | |
| |
Japan Government Thirty Year Bond | | | |
| | | |
Series 82, 1.80%, 03/20/54 | | | |
| | | |
| |
| | | |
Series M, 8.50%, 03/01/29 | | | |
Series M, 8.50%, 05/31/29 | | | |
Series M, 7.75%, 11/23/34 | | | |
Series M, 8.00%, 11/07/47 | | | |
| | | |
| |
Mexico Government International Bond | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Nigeria Government International Bond, 7.14%, 02/23/30(h) | | | |
| |
Panama Government International Bond | | | |
| | | |
| | | |
| | | |
| | | |
| |
Peruvian Government International Bond | | | |
| | | |
| | | |
| | | |
| | | |
| |
Philippines Government International Bond | | | |
| | | |
| | | |
| | | |
| |
Republic of Poland Government Bond | | | |
| | | |
Series 0429, 5.75%, 04/25/29 | | | |
Series 0729, 4.75%, 07/25/29 | | | |
Series 1029, 2.75%, 10/25/29 | | | |
| | | |
| |
Romanian Government International Bond | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Republic of South Africa Government Bond | | | |
Series 2030, 8.00%, 01/31/30 | | | |
Series 2044, 8.75%, 01/31/44 | | | |
Series 2048, 8.75%, 02/28/48(c) | | | |
Series R213, 7.00%, 02/28/31 | | | |
| | | |
| |
Export-Import Bank of Korea, 5.13%, 09/18/33 | | | |
| |
| | | |
| | | |
| | | |
| | | |
262024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
| |
| | | |
Series 10Y, 26.20%, 10/05/33 | | | |
Series 2Y, 37.00%, 02/18/26 | | | |
Series 5Y, 31.08%, 11/08/28 | | | |
| | | |
| |
Ukraine Government International Bond | | | |
| | | |
| | | |
0.00%, 08/01/41(a)(h)(i)(j) | | | |
| | | |
| |
United Kingdom Gilt, 4.38%, 07/31/54(h) | | | |
| |
Oriental Republic of Uruguay, 5.25%, 09/10/60 | | | |
Uruguay Government International Bond | | | |
| | | |
| | | |
| | | |
| |
Venezuela Government International Bond, 11.95%, 08/05/31(h)(i)(j) | | | |
Total Foreign Agency Obligations — 2.6%
(Cost: $26,031,604) | |
|
| |
Bay Area Toll Authority, RB, BAB | | | |
Series F-2, 6.26%, 04/01/49 | | | |
Series S-1, 7.04%, 04/01/50 | | | |
Los Angeles Community College District, GO, BAB, 6.60%, 08/01/42 | | | |
Los Angeles Department of Water & Power, RB, BAB, 6.60%, 07/01/50 | | | |
Regents of the University of California Medical Center Pooled Revenue, RB, Series N, 3.26%, 05/15/60(e) | | | |
State of California, GO, BAB | | | |
| | | |
| | | |
State of California, Refunding GO, 4.60%, 04/01/38 | | | |
University of California, RB, Series AD, 4.86%, 05/15/2112 | | | |
| | | |
| |
State of Connecticut, GO, Series A, 5.85%, 03/15/32 | | | |
| |
Municipal Electric Authority of Georgia, Refunding RB, BAB, 6.64%, 04/01/57 | | | |
| |
Chicago Transit Authority Sales & Transfer Tax Receipts Revenue, RB, Series B, 6.90%, 12/01/40 | | | |
State of Illinois, GO, 5.10%, 06/01/33(e) | | | |
| | | |
| | | |
| |
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Class A-2, 4.15%, 02/01/33 | | | |
| |
Commonwealth of Massachusetts, GOL, Series H, 2.90%, 09/01/49 | | | |
Massachusetts School Building Authority, Refunding RB, Series C, 2.95%, 05/15/43(e) | | | |
| | | |
| |
University of Michigan, RB, Series B, 2.56%, 04/01/50 | | | |
| |
New Jersey Turnpike Authority, RB, BAB, Series F, 7.41%, 01/01/40 | | | |
| |
City of New York, GO, Series B-1, Sustainability Bonds, 5.83%, 10/01/53 | | | |
City of New York, GO, BAB, Series F-1, 6.27%, 12/01/37 | | | |
Empire State Development Corp., RB, BAB, 5.77%, 03/15/39 | | | |
Metropolitan Transportation Authority, RB, BAB, 6.67%, 11/15/39 | | | |
New York City Municipal Water Finance Authority, RB, 5.95%, 06/15/42 | | | |
New York City Municipal Water Finance Authority, Refunding RB, 5.88%, 06/15/44 | | | |
New York City Municipal Water Finance Authority, Refunding RB, BAB, 6.01%, 06/15/42 | | | |
Port Authority of New York & New Jersey, RB | | | |
Series 165, 5.65%, 11/01/40 | | | |
Series 168, 4.93%, 10/01/51 | | | |
| | | |
| |
American Municipal Power, Inc., RB, Series B, 8.08%, 02/15/50 | | | |
| |
Commonwealth Financing Authority, RB, Series A, 3.86%, 06/01/38 | | | |
Pennsylvania State University, Refunding RB, Series D, 2.79%, 09/01/43 | | | |
| | | |
| |
Board of Regents of the University of Texas System, RB, BAB, Series C, 4.79%, 08/15/46 | | | |
City of San Antonio Texas Electric & Gas Systems Revenue, RB, BAB, Junior Lien, 5.81%, 02/01/41 | | | |
Dallas Fort Worth International Airport, Refunding RB, 2.84%, 11/01/46 | | | |
Port of Beaumont Navigation District, Refunding ARB, Series B, 10.00%, 07/01/26(b) | | | |
State of Texas, GO, BAB, 5.52%, 04/01/39 | | | |
| | | |
Total Municipal Bonds — 0.4%
(Cost: $3,790,802) | |
Schedule of Investments27
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Non-Agency Mortgage-Backed Securities |
Collateralized Mortgage Obligations — 7.6% |
| | | |
Series 2023-NQM5, Class A1, 7.05%, 11/25/68(b) | | | |
Series 2024-NQM5, Class A1, 5.70%, 11/25/69 | | | |
ACRA Trust, Series 2024-NQM1, Class A1, 5.61%, 10/25/64(b) | | | |
Ajax Mortgage Loan Trust(b) | | | |
Series 2021-C, Class A, 5.12%, 01/25/61 | | | |
Series 20233-C, Class A1, 3.50%, 05/25/63 | | | |
| | | |
| | | |
Series 2005-31, Class 1A1, (1-mo. Term SOFR + 0.67%), 5.41%, 08/25/35(a) | | | |
Series 2005-55CW, Class 2A3, (1-mo. Term SOFR + 0.46%), 5.32%, 11/25/35(a) | | | |
Series 2005-59, Class 1A1, (1-mo. Term SOFR + 0.77%), 5.53%, 11/20/35(a) | | | |
Series 2006-11CB, Class 2A1, 6.25%, 05/25/36 | | | |
Series 2006-OA17, Class 1A1D, (1-mo. Term SOFR + 0.40%), 5.16%, 12/20/46(a) | | | |
Series 2006-OA2, Class A5, (1-mo. Term SOFR + 0.57%), 5.33%, 05/20/46(a) | | | |
Series 2006-OC10, Class 2A3, (1-mo. Term SOFR + 0.57%), 5.31%, 11/25/36(a) | | | |
Series 2006-OC7, Class 2A3, (1-mo. Term SOFR + 0.61%), 5.35%, 07/25/46(a) | | | |
Series 2007-19, Class 1A34, 6.00%, 08/25/37 | | | |
American Home Mortgage Investment Trust, Series 2006-2, Class 2A2, (1-mo. Term SOFR + 1.74%), 6.58%, 05/25/36(a) | | | |
Angel Oak Mortgage Trust(b) | | | |
Series 2023-7, Class A1, 4.80%, 11/25/67 | | | |
Series 2024-1, Class A1, 5.21%, 08/25/68 | | | |
Series 2024-10, Class A1, 5.35%, 10/25/69 | | | |
AOMT, Series 2024-6, Class A3, 4.65%, 11/25/67(b) | | | |
Banc of America Alternative Loan Trust | | | |
Series 2003-8, Class 1CB1, 5.50%, 10/25/33 | | | |
Series 2006-7, Class A4, 6.50%, 10/25/36 | | | |
Banc of America Funding Trust | | | |
Series 2007-1, Class 1A6, 5.75%, 01/25/37 | | | |
Series 2007-3, (1-mo. Term SOFR + 0.29%), 5.03%, 04/25/37(a) | | | |
Bear Stearns Asset Backed Securities I Trust(a) | | | |
Series 2006-AC2, Class 1A1, (1-mo. Term SOFR + 0.46%), 5.20%, 03/25/36 | | | |
Series 2006-IM1, Class A3, (1-mo. Term SOFR + 0.67%), 5.41%, 04/25/36 | | | |
Braccan Mortgage Funding, Series 2024-1, Class X, (3-mo. LIBOR GBP + 4.34%), 9.31%, 01/15/67(a)(h) | | | |
BRAVO Residential Funding Trust(b) | | | |
Series 2021-NQM1, Class B1, 3.17%, 02/25/49(a) | | | |
Series 2024-NQM4, Class A3, 4.35%, 01/25/60 | | | |
Chase Mortgage Finance Trust | | | |
Series 2006-S2, Class 1A16, 6.25%, 10/25/36 | | | |
Series 2007-A1, Class 3A1, 5.84%, 02/25/37(a) | | | |
Series 2007-S5, Class 1A10, 6.00%, 07/25/37 | | | |
CHL Mortgage Pass-Through Trust | | | |
Series 2006-17, Class A6, 6.00%, 12/25/36 | | | |
Series 2007-11, Class A1, 6.00%, 08/25/37 | | | |
Series 2007-3, Class A17, 6.00%, 04/25/37 | | | |
| | | |
Collateralized Mortgage Obligations (continued) |
CHL Mortgage Pass-Through Trust (continued) | | | |
Series 2007-4, Class 1A47, 6.00%, 05/25/37 | | | |
Series 2007-8, Class 1A12, 5.88%, 01/25/38 | | | |
Series 2007-8, Class 1A24, 6.00%, 01/25/38 | | | |
Series 2007-9, Class A1, 5.75%, 07/25/37 | | | |
Citigroup Mortgage Loan Trust, Series 2007-6, Class 2A1, (1-mo. Term SOFR + 0.61%), 5.35%, 05/25/37(a) | | | |
COLT Mortgage Loan Trust(b) | | | |
Series 2022-5, Class B1, 4.63%, 03/25/67(a) | | | |
Series 2022-8, Class B1, 6.52%, 08/25/67(a) | | | |
Series 2024-6, Class A1, 5.39%, 11/25/69 | | | |
Connecticut Avenue Securities Trust(a)(b) | | | |
Series 2020-SBT1, Class 1M2, (30-day Avg SOFR + 3.76%), 8.62%, 02/25/40 | | | |
Series 2020-SBT1, Class 2M2, (30-day Avg SOFR + 3.76%), 8.62%, 02/25/40 | | | |
Series 2021-R01, Class 1B1, (30-day Avg SOFR + 3.10%), 7.96%, 10/25/41 | | | |
Series 2022-R01, Class 1B1, (30-day Avg SOFR + 3.15%), 8.01%, 12/25/41 | | | |
Series 2022-R01, Class 1M2, (30-day Avg SOFR + 1.90%), 6.76%, 12/25/41 | | | |
Series 2022-R02, Class 2B1, (30-day Avg SOFR + 4.50%), 9.36%, 01/25/42 | | | |
Series 2022-R02, Class 2M2, (30-day Avg SOFR + 3.00%), 7.86%, 01/25/42 | | | |
Series 2022-R03, Class 1B1, (30-day Avg SOFR + 6.25%), 11.11%, 03/25/42 | | | |
Series 2022-R04, Class 1B1, (30-day Avg SOFR + 5.25%), 10.11%, 03/25/42 | | | |
Series 2022-R05, Class 2B1, (30-day Avg SOFR + 4.50%), 9.36%, 04/25/42 | | | |
Series 2022-R05, Class 2M2, (30-day Avg SOFR + 3.00%), 7.86%, 04/25/42 | | | |
Series 2023-R01, Class 1M1, (30-day Avg SOFR + 2.40%), 7.26%, 12/25/42 | | | |
Series 2024-R02, Class 1B1, (30-day Avg SOFR + 2.50%), 7.36%, 02/25/44 | | | |
Series 2024-R05, Class 2M2, (30-day Avg SOFR + 1.70%), 6.56%, 07/25/44 | | | |
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-11, Class 1A1, 6.50%, 12/25/35 | | | |
Credit Suisse Mortgage Trust, Series 2022-NQM4, Class A2, 4.82%, 06/25/67(b) | | | |
Cross Mortgage Trust, 5.56%, 11/25/69(a)(b) | | | |
| | | |
Series 2015-6R, Class 5A2, (1-mo. Term SOFR + 0.29%), 4.08%, 03/27/36(a) | | | |
Series 2019-NQM1, Class A3, 4.06%, 10/25/59 | | | |
CSMC Trust, Series 2020-NQM6, 9.00%, 12/25/67(a)(b) | | | |
Deephaven Residential Mortgage Trust(a)(b) | | | |
| | | |
Series 2021-1, Class B1, 3.10%, 05/25/65 | | | |
Series 2022-2, Class M1, 4.30%, 03/25/67 | | | |
Ellington Financial Mortgage Trust(b) | | | |
| | | |
| | | |
282024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Collateralized Mortgage Obligations (continued) |
Fannie Mae Connecticut Avenue Securities(a) | | | |
Series 2015-C04, Class 1M2, (30-day Avg SOFR + 5.81%), 10.67%, 04/25/28 | | | |
Series 2021-R02, Class 2B1, (30-day Avg SOFR + 3.30%), 8.16%, 11/25/41(b) | | | |
Series 2021-R02, Class 2M1, (30-day Avg SOFR + 0.90%), 5.76%, 11/25/41(b) | | | |
Series 2021-R02, Class 2M2, (30-day Avg SOFR + 2.00%), 6.86%, 11/25/41(b) | | | |
Fannie Mae Mortgage-Backed Securities, Series 2023-R03, Class 2M1, (30-day Avg SOFR + 2.50%), 7.36%, 04/25/43(a)(b) | | | |
FIGRE Trust, 07/25/53(a)(b)(c) | | | |
First Horizon Alternative Mortgage Securities Trust(a) | | | |
Series 2005-AA12, Class 2A1, 5.62%, 02/25/36 | | | |
Series 2006-AA7, Class A1, 5.41%, 01/25/37 | | | |
Freddie Mac STACR REMIC Trust(a)(b) | | | |
Series 2020-HQA5, Class B1, (30-day Avg SOFR + 4.00%), 8.86%, 11/25/50 | | | |
Series 2021-DNA1, Class B1, (30-day Avg SOFR + 2.65%), 7.51%, 01/25/51 | | | |
Series 2021-DNA2, Class B1, (30-day Avg SOFR + 3.40%), 8.26%, 08/25/33 | | | |
Series 2021-DNA3, Class B1, (30-day Avg SOFR + 3.50%), 8.36%, 10/25/33 | | | |
Series 2021-DNA5, Class B1, (30-day Avg SOFR + 3.05%), 7.91%, 01/25/34 | | | |
Series 2021-DNA6, Class B1, (30-day Avg SOFR + 3.40%), 8.26%, 10/25/41 | | | |
Series 2021-DNA7, Class B1, (30-day Avg SOFR + 3.65%), 8.51%, 11/25/41 | | | |
Series 2021-HQA1, Class B1, (30-day Avg SOFR + 3.00%), 7.86%, 08/25/33 | | | |
Series 2021-HQA2, Class B1, (30-day Avg SOFR + 3.15%), 8.01%, 12/25/33 | | | |
Series 2021-HQA3, Class B1, (30-day Avg SOFR + 3.35%), 8.21%, 09/25/41 | | | |
Series 2021-HQA3, Class M2, (30-day Avg SOFR + 2.10%), 6.96%, 09/25/41 | | | |
Series 2021-HQA4, Class M2, (30-day Avg SOFR + 2.35%), 7.21%, 12/25/41 | | | |
Series 2022-DNA1, Class B1, (30-day Avg SOFR + 3.40%), 8.26%, 01/25/42 | | | |
Series 2022-DNA1, Class M2, (30-day Avg SOFR + 2.50%), 7.36%, 01/25/42 | | | |
Series 2022-DNA2, Class M2, (30-day Avg SOFR + 3.75%), 8.61%, 02/25/42 | | | |
Series 2022-DNA3, Class M2, (30-day Avg SOFR + 4.35%), 9.21%, 04/25/42 | | | |
Series 2022-DNA4, Class M2, (30-day Avg SOFR + 5.25%), 10.11%, 05/25/42 | | | |
Series 2022-DNA7, Class M2, (30-day Avg SOFR + 7.00%), 11.86%, 03/25/52 | | | |
Series 2022-HQA1, Class M2, (30-day Avg SOFR + 5.25%), 10.11%, 03/25/42 | | | |
Series 2023-DNA1, Class M1A, (30-day Avg SOFR + 2.10%), 6.96%, 03/25/43 | | | |
Series 2023-DNA2, Class M1A, (30-day Avg SOFR + 2.10%), 6.96%, 04/25/43 | | | |
Series 2023-HQA1, Class M1A, (30-day Avg SOFR + 2.00%), 6.86%, 05/25/43 | | | |
Series 2023-HQA1, Class M1B, (30-day Avg SOFR + 3.50%), 8.36%, 05/25/43 | | | |
| | | |
Collateralized Mortgage Obligations (continued) |
| | | |
| | | |
Series 2021-NQM3, Class B1, 3.47%, 05/25/66 | | | |
GS Mortgage-Backed Securities Trust, Series 2022- NQM1, Class A4, 4.00%, 05/25/62(a)(b) | | | |
GSMPS Mortgage Loan Trust, Series 2005-RP2, Class 1AF, (1-mo. Term SOFR + 0.46%), 5.20%, 03/25/35(a)(b) | | | |
Homeward Opportunities Fund I Trust, Series 2020-2, Class B1, 5.45%, 05/25/65(a)(b) | | | |
Homeward Opportunities Fund Trust, Series 2022-1, Class A1, 5.08%, 07/25/67(b) | | | |
Impac Secured Assets Trust, Series 2006-3, Class A1, (1-mo. Term SOFR + 0.45%), 5.19%, 11/25/36(a) | | | |
JP Morgan Alternative Loan Trust, Series 2006-A1, Class 2A1, 4.96%, 03/25/36(a) | | | |
MASTR Reperforming Loan Trust, Series 2005-1, Class 1A3, 7.00%, 08/25/34(b) | | | |
| | | |
Series 2022-NQM1, Class M1, 4.25%, 12/25/66(a) | | | |
Series 2024-RTL1, Class A1, 7.09%, 02/25/29 | | | |
Mill City Mortgage Loan Trust, Series 2023-NQM1, Class A1, 6.05%, 10/25/67(b) | | | |
Morgan Stanley Resecuritization Trust, Series 2015- R2, Class 1B, (12-mo. MTA + 0.71%), 4.34%, 12/27/46(a)(b) | | | |
Morgan Stanley Residential Mortgage Loan Trust, Series 2023-NQM1, Class B1, 7.46%, 09/25/68(a)(b) | | | |
NMLT Trust, Series 2021-INV1, Class B1, 3.61%, 05/25/56(a)(b) | | | |
| | | |
Series 2022-AFC1, Class A1A, 4.10%, 04/25/57(a) | | | |
Series 2023-AFC1, Class A1, 6.60%, 02/25/58 | | | |
| | | |
Series 2005-QA6, Class NB21, 5.08%, 05/25/35 | | | |
Series 2005-QO2, Class A1, (12-mo. MTA + 1.36%), 6.42%, 09/25/45 | | | |
Series 2007-QH3, Class A1, (1-mo. Term SOFR + 0.43%), 5.17%, 04/25/37 | | | |
Series 2007-QO2, Class A1, (1-mo. Term SOFR + 0.26%), 5.00%, 02/25/47 | | | |
RCKT Mortgage Trust, Series 2024-CES8, Class A1A, 5.49%, 11/25/44 | | | |
Reperforming Loan REMIC Trust(a)(b) | | | |
Series 2005-R1, Class 1AF1, (1-mo. Term SOFR + 0.47%), 5.21%, 03/25/35 | | | |
Series 2005-R1, Class 1AF2, (1-mo. Term SOFR + 0.47%), 5.21%, 03/25/35 | | | |
Series 2005-R2, Class 1AF1, (1-mo. Term SOFR + 0.45%), 5.19%, 06/25/35 | | | |
Residential Asset Securitization Trust | | | |
Series 2006-A14CB, Class 1A2, 6.25%, 12/25/36 | | | |
Series 2007-A9, Class A1, (1-mo. Term SOFR + 0.66%), 5.40%, 09/25/37(a) | | | |
RFMSI Trust, Series 2007-SA4, Class 3A1, 6.00%, 10/25/37(a) | | | |
Saluda Grade Alternative Mortgage Trust(b) | | | |
Series 2024-RTL4, Class A1, 7.50%, 02/25/30 | | | |
Series 2024-RTL5, Class A1, 7.76%, 04/25/30 | | | |
Sequoia Mortgage Trust(a)(b) | | | |
Series 2017-CH1, Class B3, 4.51%, 08/25/47 | | | |
Schedule of Investments29
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Collateralized Mortgage Obligations (continued) |
Sequoia Mortgage Trust(a)(b) (continued) | | | |
Series 2017-CH2, Class B3, 4.48%, 12/25/47 | | | |
SG Residential Mortgage Trust(a)(b) | | | |
Series 2019-3, Class B1, 4.08%, 09/25/59 | | | |
Series 2022-2, Class B1, 5.30%, 08/25/62 | | | |
Series 2022-2, Class M1, 5.30%, 08/25/62 | | | |
TRK Trust, Series 2021-INV2, Class B1, 4.10%, 11/25/56(a)(b) | | | |
TVC Mortgage Trust, Series 2023-RTL1, Class A1, 8.25%, 11/25/27(b) | | | |
Verus Securitization Trust(a)(b) | | | |
Series 2021-3, Class B1, 3.20%, 06/25/66 | | | |
Series 2023-3, Class B1, 4.07%, 02/25/67 | | | |
Series 2023-INV1, Class M1, 7.54%, 02/25/68 | | | |
Visio Trust, Series 2022-1, Class B1, 6.17%, 08/25/57(a)(b) | | | |
Wachovia Mortgage Loan Trust, Series 2006-AMN1, Class A2, (1-mo. Term SOFR + 0.41%), 1.89%, 08/25/36(a) | | | |
WaMu Mortgage Pass-Through Certificates Trust(a) | | | |
Series 2006-AR8, Class 1A4, 4.89%, 08/25/46 | | | |
Series 2007-HY3, Class 4A1, 5.16%, 03/25/37 | | | |
Series 2007-HY4, Class 1A1, 3.82%, 04/25/37 | | | |
Series 2007-OA5, Class 1A, (12-mo. MTA + 0.75%), 5.81%, 06/25/47 | | | |
Washington Mutual Mortgage Pass-Through Certificates Trust | | | |
Series 2005-9, Class 5A1, 5.50%, 11/25/35 | | | |
Series 2005-AR1, Class A1A, (1-mo. Term SOFR + 0.63%), 5.37%, 12/25/35(a) | | | |
Series 2006-6, Class 3CB1, 7.00%, 08/25/36 | | | |
Series 2006-8, Class A4, 4.13%, 10/25/36 | | | |
Series 2007-5, Class A6, 6.00%, 06/25/37 | | | |
Series 2007-OA2, Class 2A, (12-mo. MTA + 0.70%), 5.76%, 01/25/47(a) | | | |
Series 2007-OA3, Class 5A, (12-mo. MTA + 1.25%), 6.31%, 04/25/47(a) | | | |
Series 2007-OC2, Class A3, (1-mo. Term SOFR + 0.73%), 5.47%, 06/25/37(a) | | | |
| | | |
Commercial Mortgage-Backed Securities — 3.2% |
280 Park Avenue Mortgage Trust(a)(b) | | | |
Series 2017-280P, Class B, (1-mo. Term SOFR + 1.38%), 6.20%, 09/15/34 | | | |
Series 2017-280P, Class E, (1-mo. Term SOFR + 2.42%), 7.24%, 09/15/34 | | | |
3650R 2021-PF1 Commercial Mortgage Trust, Series 2022-PF2, Class A5, 5.29%, 11/15/55(a) | | | |
ACREC LLC, Series 2023-FL2, Class A, (1-mo. Term SOFR + 2.23%), 7.03%, 02/19/38(a)(b) | | | |
AREIT Ltd., Series 2024-CRE9, Class A, (1-mo. Term SOFR + 1.69%), 6.47%, 05/17/41(a)(b) | | | |
ARES, Series 2024-IND, Class A, (1-mo. Term SOFR + 1.44%), 6.29%, 10/15/34(a)(b) | | | |
ARES Commercial Mortgage Trust, Series 2024-IND, Class A, (1-mo. Term SOFR + 1.69%), 6.50%, 07/15/41(a)(b) | | | |
Atrium Hotel Portfolio Trust(a)(b) | | | |
Series 2024-ATRM, Class A, 5.59%, 11/10/29 | | | |
Series 2024-ATRM, Class E, 9.52%, 11/10/29 | | | |
| | | |
Commercial Mortgage-Backed Securities (continued) |
BAMLL Trust, Series 2024-BHP, Class A, (1-mo. Term SOFR + 2.35%), 7.15%, 08/15/39(a)(b) | | | |
| | | |
Series 2019-BN19, Class A3, 3.18%, 08/15/61 | | | |
Series 2019-BN20, Class A3, 3.01%, 09/15/62 | | | |
Series 2022-BNK41, Class A4, 3.79%, 04/15/65(a) | | | |
Series 2024-5YR10, Class A3, 5.30%, 10/15/57 | | | |
Series 2024-5YR6, Class A3, 6.23%, 05/15/57 | | | |
Series BN37, Class A4, 2.37%, 11/15/64 | | | |
BBCMS Mortgage Trust, Series 2023-C22, Class A5, 6.80%, 11/15/56(a) | | | |
BDS LLC, Series 2024-FL13, Class A, (1-mo. Term SOFR + 1.58%), 6.34%, 09/19/39(a)(b) | | | |
BFLD Commercial Mortgage Trust(a)(b)(c) | | | |
Series 2024-UNIV, Class A, 11/15/29 | | | |
Series 2024-UNIV, Class E, 11/15/29 | | | |
BFLD Mortgage Trust, Series 2024-VICT, Class A, (1-mo. Term SOFR + 1.89%), 6.69%, 07/15/41(a)(b) | | | |
BHMS, Series 2018-ATLS, Class A, (1-mo. Term SOFR + 1.55%), 6.35%, 07/15/35(a)(b) | | | |
BLP Commercial Mortgage Trust, Series 2024-IND2, Class A, (1-mo. Term SOFR + 1.34%), 6.15%, 03/15/41(a)(b) | | | |
| | | |
| | | |
Series 2023-C5, Class XA, 0.72%, 06/15/56(a) | | | |
Series 2024-5C6, Class A3, 5.32%, 09/15/57 | | | |
BMP, Series 2024-MF23, Class E, (1-mo. Term SOFR + 3.39%), 8.19%, 06/15/41(a)(b) | | | |
BPR Trust, Series 2024-PMDW, Class A, 11/05/29(a)(b)(c) | | | |
BSST Mortgage Trust(a)(b) | | | |
Series 2021-SSCP, Class A, (1-mo. Term SOFR + 0.86%), 5.67%, 04/15/36 | | | |
Series 2021-SSCP, Class G, (1-mo. Term SOFR + 3.91%), 8.72%, 04/15/36 | | | |
Series 2021-SSCP, Class H, (1-mo. Term SOFR + 5.02%), 9.82%, 04/15/36 | | | |
BX Commercial Mortgage Trust(a)(b) | | | |
Series 2020-VKNG, Class A, (1-mo. Term SOFR + 1.04%), 5.85%, 10/15/37 | | | |
Series 2020-VKNG, Class D, (1-mo. Term SOFR + 1.81%), 6.62%, 10/15/37 | | | |
Series 2021-VIV5, Class A, 2.84%, 03/09/44 | | | |
Series 2022-CSMO, Class B, (1-mo. Term SOFR + 3.14%), 7.94%, 06/15/27 | | | |
Series 2022-LP2, Class A, (1-mo. Term SOFR + 1.01%), 5.82%, 02/15/39 | | | |
Series 2023-VLT3, Class A, (1-mo. Term SOFR + 1.94%), 6.74%, 11/15/28 | | | |
Series 2023-XL3, Class A, (1-mo. Term SOFR + 1.76%), 6.57%, 12/09/40 | | | |
Series 2023-XL3, Class D, (1-mo. Term SOFR + 3.59%), 8.39%, 12/09/40 | | | |
Series 2024-AIR2, Class A, (1-mo. Term SOFR + 1.49%), 6.30%, 10/15/41 | | | |
Series 2024-AIRC, Class A, (1-mo. Term SOFR + 1.69%), 6.50%, 08/15/39 | | | |
Series 2024-BRBK, Class A, (1-mo. Term SOFR + 2.88%), 7.88%, 10/15/41 | | | |
Series 2024-BRBK, Class B, (1-mo. Term SOFR + 3.93%), 8.93%, 10/15/41 | | | |
302024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Commercial Mortgage-Backed Securities (continued) |
BX Commercial Mortgage Trust(a)(b) (continued) | | | |
Series 2024-BRBK, Class D, (1-mo. Term SOFR + 5.97%), 10.97%, 10/15/41 | | | |
Series 2024-KING, Class A, (1-mo. Term SOFR + 1.54%), 6.35%, 05/15/34 | | | |
Series 2024-MDHS, Class A, (1-mo. Term SOFR + 1.64%), 6.45%, 05/15/41 | | | |
Series 2024-MF, Class A, (1-mo. Term SOFR + 1.44%), 6.25%, 02/15/39 | | | |
Series 2024-MF, Class E, (1-mo. Term SOFR + 3.74%), 8.54%, 02/15/39 | | | |
Series 2024-PURE, Class A, 6.02%, 11/15/29 | | | |
Series 2024-XL4, Class A, (1-mo. Term SOFR + 1.44%), 6.25%, 02/15/39 | | | |
Series 2024-XL4, Class D, (1-mo. Term SOFR + 3.14%), 7.94%, 02/15/39 | | | |
Series 2024-XL4, Class E, (1-mo. Term SOFR + 4.19%), 8.99%, 02/15/39 | | | |
| | | |
Series 2019-OC11, Class A, 3.20%, 12/09/41 | | | |
Series 2021, Class F, (1-mo. Term SOFR + 4.04%), 8.85%, 06/15/36(a) | | | |
Series 2021-ARIA, Class A, (1-mo. Term SOFR + 1.01%), 5.82%, 10/15/36(a) | | | |
Series 2021-ARIA, Class C, (1-mo. Term SOFR + 1.76%), 6.56%, 10/15/36(a) | | | |
Series 2021-LBA, Class AV, (1-mo. Term SOFR + 0.91%), 5.72%, 02/15/36(a) | | | |
Series 2021-MFM1, Class A, (1-mo. Term SOFR + 0.81%), 5.62%, 01/15/34(a) | | | |
Series 2022-IND, Class A, (1-mo. Term SOFR + 1.49%), 6.30%, 04/15/37(a) | | | |
Series 2022-LBA6, Class A, (1-mo. Term SOFR + 1.00%), 5.79%, 01/15/39(a) | | | |
Series 2023-DELC, Class A, (1-mo. Term SOFR + 2.69%), 7.49%, 05/15/38(a) | | | |
Series 2023-DELC, Class D, (1-mo. Term SOFR + 4.39%), 9.19%, 05/15/38(a) | | | |
Series 2024-CNYN, Class A, (1-mo. Term SOFR + 1.44%), 6.25%, 04/15/41(a) | | | |
Series 2024-CNYN, Class D, (1-mo. Term SOFR + 2.69%), 7.49%, 04/15/41(a) | | | |
Series 2024-CNYN, Class E, (1-mo. Term SOFR + 3.69%), 8.49%, 04/15/41(a) | | | |
Series 2024-PALM, Class A, (1-mo. Term SOFR + 1.54%), 6.35%, 06/15/37(a) | | | |
Series 2024-PAT, Class A, (1-mo. Term SOFR + 2.09%), 6.89%, 03/15/41(a) | | | |
Series 2024-PAT, Class C, (1-mo. Term SOFR + 4.44%), 9.24%, 03/15/41(a) | | | |
Series 2024-PAT, Class D, (1-mo. Term SOFR + 5.39%), 10.19%, 03/15/41(a) | | | |
Series 2024-VLT4, Class A, (1-mo. Term SOFR + 1.49%), 6.30%, 07/15/29(a) | | | |
Series 2024-VLT4, Class E, (1-mo. Term SOFR + 2.89%), 7.69%, 07/15/29(a) | | | |
Series 2024-VLT4, Class F, (1-mo. Term SOFR + 3.94%), 8.74%, 07/15/29(a) | | | |
Cali, Series 2024-SUN, Class A, (1-mo. Term SOFR + 1.89%), 6.70%, 07/15/41(a)(b) | | | |
| | | |
Commercial Mortgage-Backed Securities (continued) |
CAMB Commercial Mortgage Trust, Series 2019- LIFE, Class A, (1-mo. Term SOFR + 1.37%), 6.17%, 12/15/37(a)(b) | | | |
CENT Trust, Series 2023-CITY, Class A, (1-mo. Term SOFR + 2.62%), 7.42%, 09/15/38(a)(b) | | | |
CFCRE Commercial Mortgage Trust, Series 2016-C4, Class AM, 3.69%, 05/10/58 | | | |
CFK Trust, Series 2020-MF2, Class B, 2.79%, 03/15/39(b) | | | |
Citigroup Commercial Mortgage Trust, Series 2015- GC27, Class AS, 3.57%, 02/10/48 | | | |
Commercial Mortgage Trust | | | |
Series 2015-CR25, Class A4, 3.76%, 08/10/48 | | | |
Series 2024-WCL1, Class A, (1-mo. Term SOFR + 1.84%), 6.63%, 06/15/41(a)(b) | | | |
Series 2024-WCL1, Class B, (1-mo. Term SOFR + 2.59%), 7.38%, 06/15/41(a)(b) | | | |
Series 2024-WCL1, Class E, (1-mo. Term SOFR + 4.49%), 9.29%, 06/15/41(a)(b) | | | |
| | | |
Series 2024-DFW1, Class A, (1-mo. Term SOFR + 1.64%), 6.45%, 08/15/41 | | | |
Series 2024-DFW1, Class E, (1-mo. Term SOFR + 3.89%), 8.69%, 08/15/41 | | | |
CSAIL Commercial Mortgage Trust, Series 2024- GATE, Class A, 4.92%, 11/10/29(a)(b) | | | |
CSMC, Series 2020-NET, Class B, 2.82%, 08/15/37(b) | | | |
DBGS, Series 2024-SBL, Class A, (1-mo. Term SOFR + 1.88%), 6.69%, 08/15/34(a)(b) | | | |
DBSG Mortgage Trust, Series 2024-ALTA, Class A, 5.95%, 06/10/37(a)(b) | | | |
DC Trust, Series 2024-HLTN, Class A, 5.73%, 04/13/40(a)(b) | | | |
| | | |
Series 2024-SPBX, Class A, (1-mo. Term SOFR + 1.50%), 6.30%, 03/15/34 | | | |
Series 2024-SPBX, Class E, (1-mo. Term SOFR + 4.00%), 8.80%, 03/15/34 | | | |
| | | |
Series 2024-ELM, Class A10, 5.80%, 06/10/39 | | | |
Series 2024-ELM, Class A15, 5.80%, 06/10/39 | | | |
Series 2024-ELM, Class E10, 7.79%, 06/10/39 | | | |
Series 2024-ELM, Class XP10, 0.23%, 06/10/39 | | | |
Series 2024-ELM, Class XP15, 1.56%, 06/10/39 | | | |
EQT Trust, Series 2024-EXTR, Class A, 5.33%, 07/05/41(a)(b) | | | |
Extended Stay America Trust, Series 2021-ESH, Class F, (1-mo. Term SOFR + 3.81%), 8.62%, 07/15/38(a)(b) | | | |
Fashion Show Mall LLC, Series 2024-SHOW, Class A, 5.27%, 10/10/41(a)(b) | | | |
FS Rialto, Series 2024-FL9, Class A, (1-mo. Term SOFR + 1.63%), 6.48%, 10/19/39(a)(b) | | | |
Great Wolf Trust, Series 2024-WOLF, Class A, (1-mo. Term SOFR + 1.54%), 6.35%, 03/15/39(a)(b) | | | |
GS Mortgage Securities Corp. Trust(a)(b) | | | |
Series 2022-ECI, Class A, (1-mo. Term SOFR + 2.19%), 7.00%, 08/15/39 | | | |
Series 2023-FUN, Class B, (1-mo. Term SOFR + 2.79%), 7.59%, 03/15/28 | | | |
Series 2023-SHIP, Class A, 4.32%, 09/10/38 | | | |
Schedule of Investments31
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Commercial Mortgage-Backed Securities (continued) |
GS Mortgage Securities Corp. Trust(a)(b) (continued) | | | |
Series 2023-SHIP, Class C, 5.51%, 09/10/38 | | | |
Series 2023-SHIP, Class E, 7.43%, 09/10/38 | | | |
Series 2024-RVR, Class E, 7.47%, 08/10/41 | | | |
GS Mortgage Securities Trust | | | |
Series 2015-GC32, Class C, 4.40%, 07/10/48(a) | | | |
Series 2017-GS8, Class A4, 3.47%, 11/10/50 | | | |
Series 2019-GSA1, Class AS, 3.34%, 11/10/52 | | | |
GWT, Series 2024-WLF2, Class A, (1-mo. Term SOFR + 1.69%), 6.50%, 05/15/41(a)(b) | | | |
| | | |
Series 2024-2061, Class A, (1-mo. Term SOFR + 1.84%), 6.79%, 10/15/41 | | | |
Series 2024-2061, Class D, (1-mo. Term SOFR + 3.64%), 8.59%, 10/15/41 | | | |
HILT Commercial Mortgage Trust(a)(b) | | | |
Series 2024-ORL, Class A, (1-mo. Term SOFR + 1.54%), 6.35%, 05/15/37 | | | |
Series 2024-ORL, Class D, (1-mo. Term SOFR + 3.19%), 7.99%, 05/15/37 | | | |
HLTN Commercial Mortgage Trust, Series 2024- DPLO, Class A, (1-mo. Term SOFR + 1.64%), 6.45%, 06/15/41(a)(b) | | | |
Hono Lulu Mortgage Trust, Series 2021-LULU, Class A, (1-mo. Term SOFR + 1.26%), 6.07%, 10/15/36(a)(b) | | | |
HTL Commercial Mortgage Trust, Series 2024-T53, Class E, 10.26%, 05/10/39(a)(b) | | | |
JP Morgan Chase Commercial Mortgage Securities Trust | | | |
Series 2016-JP2, Class A4, 2.82%, 08/15/49 | | | |
Series 2021-MHC, Class E, (1-mo. Term SOFR + 2.81%), 7.62%, 04/15/38(a)(b) | | | |
JPMCC Commercial Mortgage Securities Trust, Series 2019-COR5, Class A3, 3.12%, 06/13/52 | | | |
JW Commercial Mortgage Trust(a)(b) | | | |
Series 2024-MRCO, Class A, (1-mo. Term SOFR + 1.62%), 6.41%, 06/15/39 | | | |
Series 2024-MRCO, Class D, (1-mo. Term SOFR + 3.19%), 7.99%, 06/15/39 | | | |
KSL Commercial Mortgage Trust(a)(b) | | | |
Series 2023-HT, Class A, (1-mo. Term SOFR + 2.29%), 7.09%, 12/15/36 | | | |
Series 2023-HT, Class D, (1-mo. Term SOFR + 4.29%), 9.09%, 12/15/36 | | | |
| | | |
Series 2024-7IND, Class A, (1-mo. Term SOFR + 1.44%), 6.25%, 10/15/41 | | | |
Series 2024-7IND, Class D, (1-mo. Term SOFR + 2.64%), 7.45%, 10/15/41 | | | |
Series 2024-BOLT, Class A, (1-mo. Term SOFR + 1.59%), 6.40%, 06/15/26 | | | |
Series 2024-BOLT, Class F, (1-mo. Term SOFR + 4.44%), 9.24%, 06/15/26 | | | |
Lehman Brothers Small Balance Commercial Mortgage Trust, Series 2007-2A, Class M1, (1-mo. Term SOFR + 0.51%), 5.25%, 06/25/37(a)(b) | | | |
| | | |
Series 2024-HTL, Class C, (1-mo. Term SOFR + 3.11%), 7.91%, 02/15/37(a) | | | |
Series 2024-TWA, Class A, 5.92%, 06/12/39 | | | |
Series 2024-TWA, Class E, 8.73%, 06/12/39 | | | |
Series 2024-TWA, Class XA, 0.92%, 06/12/39 | | | |
| | | |
Commercial Mortgage-Backed Securities (continued) |
MHC Commercial Mortgage Trust, Series 2021-MHC, Class A, (1-mo. Term SOFR + 0.92%), 5.72%, 04/15/38(a)(b) | | | |
MHP Trust, Series 2021-STOR, Class G, (1-mo. Term SOFR + 2.86%), 7.67%, 07/15/38(a)(b) | | | |
MIC Trust, Series 2023-MIC, Class A, 8.44%, 12/05/38(a)(b) | | | |
Morgan Stanley Capital I Trust | | | |
Series 2016-UB11, Class A4, 2.78%, 08/15/49 | | | |
Series 2019-H6, Class D, 3.00%, 06/15/52(b) | | | |
Series 2024-NSTB, Class A, 3.90%, 09/24/57(a)(b) | | | |
MSWF Commercial Mortgage Trust, Series 2023-2, Class XA, 0.91%, 12/15/56(a) | | | |
MTN Commercial Mortgage Trust, Series 2022-LPFL, Class A, (1-mo. Term SOFR + 1.40%), 6.21%, 03/15/39(a)(b) | | | |
NYC Trust, Series 2024-3ELV, Class A, (1-mo. Term SOFR + 1.99%), 6.79%, 08/15/29(a)(b) | | | |
One New York Plaza Trust, Series 2020-1NYP, Class A, (1-mo. Term SOFR + 1.06%), 5.87%, 01/15/36(a)(b) | | | |
Open Trust, Series 2023-AIR, Class A, (1-mo. Term SOFR + 3.09%), 7.89%, 10/15/28(a)(b) | | | |
ORL Trust, Series 2023, Class A, (1-mo. Term SOFR + 2.35%), 7.15%, 10/19/36(a)(b) | | | |
PGA Trust, Series 2024-RSR2, Class A, (1-mo. Term SOFR + 1.89%), 6.69%, 06/15/39(a)(b) | | | |
| | | |
Series 2024-CNTR, Class A, 5.39%, 11/13/41 | | | |
Series 2024-CNTR, Class E, 8.82%, 11/13/41 | | | |
SELF Commercial Mortgage Trust(a)(b)(c) | | | |
Series 2024-STRG, Class A, 11/15/34 | | | |
Series 2024-STRG, Class E, 11/15/34 | | | |
SG Commercial Mortgage Securities Trust, Series 2019-PREZ, Class E, 3.48%, 09/15/39(a)(b) | | | |
| | | |
Series 2024-LXRY, Class A, (1-mo. Term SOFR + 1.95%), 6.75%, 10/15/41 | | | |
Series 2024-LXRY, Class D, (1-mo. Term SOFR + 3.60%), 8.40%, 10/15/41 | | | |
Series 2024-LXRY, Class E, (1-mo. Term SOFR + 4.45%), 9.25%, 10/15/41 | | | |
SREIT Trust, Series 2021-MFP, Class A, (1-mo. Term SOFR + 0.85%), 5.65%, 11/15/38(a)(b) | | | |
Taubman Centers Commercial Mortgage Trust, Series 2022-DPM, Class A, (1-mo. Term SOFR + 2.19%), 6.99%, 05/15/37(a)(b) | | | |
TTAN, Series 2021-MHC, Class A, (1-mo. Term SOFR + 0.96%), 5.77%, 03/15/38(a)(b) | | | |
TYSN Mortgage Trust, Series 2023-CRNR, Class A, 6.58%, 12/10/33(a)(b) | | | |
UBS Commercial Mortgage Trust, Series 2017-C4, Class AS, 3.84%, 10/15/50(a) | | | |
VEGAS Trust, Series 2024-TI, Class A, 11/10/39(b)(c) | | | |
Velocity Commercial Capital Loan Trust(a)(b) | | | |
Series 2020-1, Class AFX, 2.61%, 02/25/50 | | | |
Series 2022-3, Class A, 5.22%, 06/25/52 | | | |
Series 2023-2, Class M1, 7.03%, 05/25/53 | | | |
Series 2024-1, Class A, 6.55%, 01/25/54 | | | |
Series 2024-5, Class A, 5.49%, 10/25/54 | | | |
Wells Fargo Commercial Mortgage Trust | | | |
| | | |
Series 2015-C26, Class AS, 3.58%, 02/15/48 | | | |
322024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
Commercial Mortgage-Backed Securities (continued) |
Wells Fargo Commercial Mortgage Trust (continued) | | | |
Series 2017-C40, Class A4, 3.58%, 10/15/50 | | | |
Series 2019-C49, Class D, 3.00%, 03/15/52(b) | | | |
Series 2024-1CHI, Class A, 5.31%, 07/15/35(a)(b) | | | |
Series 2024-BPRC, Class B, 6.22%, 07/15/43(b) | | | |
Series 2024-BPRC, Class C, 6.43%, 07/15/43(b) | | | |
Series 2024-BPRC, Class D, 7.08%, 07/15/43(b) | | | |
WFRBS Commercial Mortgage Trust, Series 2014- C25, Class A5, 3.63%, 11/15/47 | | | |
| | | |
Interest Only Collateralized Mortgage Obligations(a) — 0.1% |
JP Morgan Alternative Loan Trust, Series 2014-5, Class 5C, 0.00%, 05/27/36(b) | | | |
Residential Asset Securitization Trust, Series 2007- A9, Class A2, (1-mo. Term SOFR + 6.34%), 1.60%, 09/25/37 | | | |
| | | |
Total Non-Agency Mortgage-Backed Securities — 10.9%
(Cost: $103,414,413) | |
|
|
| |
Prudential Financial, Inc., 5.38%, 05/15/45(a) | | | |
| | | |
|
Aerospace & Defense — 0.0% | |
| | | |
| |
Total Preferred Securities — 0.0%
(Cost: $56,930) | |
| | | |
U.S. Government Sponsored Agency Securities |
Commercial Mortgage-Backed Securities — 0.0% | |
Fannie Mae-Aces, Series 2021-M4, Class A2, 1.46%, 02/25/31(a) | | | |
Freddie Mac, Series 2024-P015, Class A1, 4.31%, 11/25/32(a) | | | |
Freddie Mac Multifamily Structured Pass Through Certificates, 5.03%, 10/25/31 | | | |
| | | |
Series 2023-119, 2.25%, 04/16/65 | | | |
Series 2023-50, Class AC, 3.25%, 09/16/63(a) | | | |
| | | |
Mortgage-Backed Securities — 36.4% | |
Fannie Mae Mortgage-Backed Securities, 5.81%, 06/01/31 | | | |
Freddie Mac Mortgage-Backed Securities | | | |
| | | |
| | | |
| | | |
Mortgage-Backed Securities (continued) | |
Ginnie Mae Mortgage-Backed Securities(m) | | | |
4.00%, 11/20/40 - 11/15/54 | | | |
3.50%, 09/20/46 - 11/20/54 | | | |
4.50%, 02/20/49 - 11/20/54 | | | |
3.00%, 06/20/50 - 11/20/54 | | | |
2.00%, 01/20/51 - 11/20/54 | | | |
2.50%, 10/20/51 - 11/15/54 | | | |
5.50%, 02/20/53 - 12/15/54 | | | |
6.50%, 06/20/54 - 11/15/54 | | | |
6.00%, 07/20/54 - 11/15/54 | | | |
| | | |
Uniform Mortgage-Backed Securities | | | |
3.00%, 07/01/31 - 11/14/54(m) | | | |
3.50%, 05/01/33 - 11/14/54(m) | | | |
2.50%, 01/01/35 - 11/14/54(m) | | | |
2.00%, 05/01/36 - 11/14/54(m) | | | |
1.50%, 09/01/36 - 10/01/51(m) | | | |
4.00%, 11/15/39 - 11/14/54(m) | | | |
4.50%, 11/15/39 - 11/14/54(m) | | | |
5.50%, 09/01/48 - 11/15/54(m) | | | |
5.00%, 06/01/52 - 11/14/54(m) | | | |
6.00%, 10/01/52 - 12/15/54(m) | | | |
6.50%, 08/01/53 - 11/15/54(m) | | | |
7.50%, 12/01/53 - 01/01/54 | | | |
| | | |
Total U.S. Government Sponsored Agency Securities — 36.4%
(Cost: $353,180,706) | |
U.S. Treasury Obligations |
| | | |
4.50%, 08/15/39 - 02/15/44 | | | |
1.13%, 05/15/40 - 08/15/40 | | | |
4.38%, 05/15/40 - 08/15/43 | | | |
1.88%, 02/15/41 - 11/15/51(e) | | | |
4.75%, 02/15/41 - 11/15/43 | | | |
3.13%, 11/15/41 - 05/15/48 | | | |
2.38%, 02/15/42 - 05/15/51 | | | |
3.00%, 05/15/42 - 08/15/52(e) | | | |
4.00%, 11/15/42 - 11/15/52 | | | |
| | | |
2.88%, 05/15/43 - 05/15/52 | | | |
3.63%, 08/15/43 - 05/15/53 | | | |
| | | |
3.38%, 05/15/44 - 11/15/48 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
3.88%, 04/30/25 - 08/15/33 | | | |
4.00%, 12/15/25 - 02/15/34 | | | |
4.25%, 12/31/25 - 06/30/31 | | | |
0.50%, 02/28/26 - 05/31/27 | | | |
4.63%, 03/15/26 - 05/31/31 | | | |
4.50%, 03/31/26 - 11/15/33 | | | |
3.75%, 04/15/26 - 05/31/30 | | | |
4.88%, 04/30/26 - 10/31/30 | | | |
4.13%, 06/15/26 - 11/15/32 | | | |
0.63%, 07/31/26 - 08/15/30 | | | |
1.63%, 11/30/26 - 05/15/31 | | | |
| | | |
Schedule of Investments33
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund(Percentages shown are based on Net Assets)
| | | |
U.S. Treasury Obligations (continued) |
U.S. Treasury Notes (continued) | | | |
4.38%, 07/15/27 - 11/30/30 | | | |
3.38%, 09/15/27 - 05/15/33 | | | |
| | | |
1.25%, 03/31/28 - 08/15/31 | | | |
3.63%, 03/31/28 - 03/31/30 | | | |
2.88%, 08/15/28 - 05/15/32 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Total U.S. Treasury Obligations — 22.6%
(Cost: $214,109,338) | |
Total Long-Term Investments — 107.7%
(Cost: $1,028,347,324) | |
|
Foreign Agency Obligations — 0.0% | |
| | | |
Series 364D, 31.20%, 12/10/24 | | | |
Series 364D, 25.98%, 02/18/25 | | | |
Series 364D, 30.25%, 03/18/25 | | | |
Mexico Cetes, Series BI, 11.23%, 11/28/24(n) | | | |
| |
| | | |
Money Market Funds — 14.8% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(o)(p)(q) | | | |
BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.75%(o)(p) | | | |
| |
| | | |
U.S. Treasury Obligations — 0.8% | |
| | | |
| | | |
| | | |
| | | |
U.S. Treasury Obligations (continued) | |
U.S. Treasury Notes (continued) | | | |
| | | |
| | | |
| |
Total Short-Term Securities — 15.6%
(Cost: $149,511,731) | |
Options Purchased — 0.0%
(Cost: $432,145) | |
Total Investments Before Investments Sold Short, TBA Sale Commitments and
Options Written — 123.3%
(Cost: $1,178,291,200) | |
|
U.S. Treasury Obligations — (0.0)% | | | |
U.S. Treasury Notes, 3.88%, 08/15/34 | | | |
Total Investments Sold Short — (0.0)%
(Proceeds: $(129,593)) | | | |
|
Mortgage-Backed Securities — (6.7)% | |
Ginnie Mae Mortgage-Backed Securities | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Uniform Mortgage-Backed Securities | | | |
2.00%, 11/18/39 - 11/14/54 | | | |
2.50%, 11/18/39 - 11/14/54 | | | |
3.00%, 11/18/39 - 11/14/54 | | | |
3.50%, 11/18/39 - 11/14/54 | | | |
4.00%, 11/15/39 - 11/14/54 | | | |
4.50%, 11/15/39 - 11/14/54 | | | |
5.00%, 11/14/54 - 12/12/54 | | | |
| | | |
| | | |
| | | |
Total TBA Sale Commitments — (6.7)%
(Proceeds: $(65,241,663)) | |
Options Written — (0.0)%
(Premiums Received: $(138,838)) | |
Total Investments, Net of Investments Sold Short, TBA Sale Commitments and
Options Written — 116.6%
(Cost: $1,112,781,106) | |
Liabilities in Excess of Other Assets — (16.6)% | |
| |
342024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
| Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
| Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| |
| Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
| All or a portion of this security is on loan. |
| Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates. |
| Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step- down bond) at regular intervals until maturity. Interest rate shown reflects the rate currently in effect. |
| This security may be resold to qualified foreign investors and foreign institutional buyers under Regulation S of the Securities Act of 1933. |
| Issuer filed for bankruptcy and/or is in default. |
| Non-income producing security. |
| Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $256,412, representing less than 0.05% of its net assets as of period end, and an original cost of $255,458. |
| |
| Represents or includes a TBA transaction. |
| Rates are discount rates or a range of discount rates as of period end. |
| |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Liquidity Funds, T-Fund, Institutional Shares | | | | | | | | | |
iShares iBoxx $ Investment Grade Corporate Bond ETF(c) | | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
| As of period end, the entity is no longer held. |
Derivative Financial Instruments Outstanding as of Period End
| | | | Value/
Unrealized
Appreciation
(Depreciation) |
| | | | |
| | | | |
10-Year Australian Treasury Bonds | | | | |
10-Year U.S. Treasury Note | | | | |
10-Year U.S. Ultra Long Treasury Note | | | | |
| | | | |
| | | | |
| | | | |
2-Year U.S. Treasury Note | | | | |
5-Year U.S. Treasury Note | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
10-Year U.S. Treasury Note | | | | |
Schedule of Investments35
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Futures Contracts (continued)
| | | | Value/ Unrealized Appreciation (Depreciation) |
Short Contracts (continued) | | | | |
10-Year U.S. Ultra Long Treasury Note | | | | |
| | | | |
5-Year U.S. Treasury Note | | | | |
| | | | |
| | | | |
Forward Foreign Currency Exchange Contracts
| | | | Unrealized
Appreciation
(Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Goldman Sachs International | | |
| | | | | | |
362024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
Schedule of Investments37
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
382024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Schedule of Investments39
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
402024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
Schedule of Investments41
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
422024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Schedule of Investments43
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
442024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
Schedule of Investments45
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
462024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Forward Foreign Currency Exchange Contracts (continued)
| | | | Unrealized Appreciation (Depreciation) |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Goldman Sachs International | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | Morgan Stanley & Co. International PLC | | |
| | | | | | |
| |
Exchange-Traded Options Purchased
| | | | | |
| | | | | | | |
10-Year U.S. Treasury Note Future | | | | | | | |
Schedule of Investments47
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Exchange-Traded Options Purchased (continued)
| | | | | |
| | | | | | | |
5-Year U.S. Treasury Note Future | | | | | | | |
| | | | | | | |
| | | | | | | |
OTC Barrier Options Purchased
| | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | Goldman Sachs International | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
OTC Currency Options Purchased
| | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| | | | | | | |
| Goldman Sachs International | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| | | | | | | |
| | | | | | | |
482024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
OTC Currency Options Purchased (continued)
| | | | | |
| | | | | | | |
| Goldman Sachs International | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| | | | | | | |
| | | | | | | |
OTC Credit Default Swaptions Purchased
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | |
Bought Protection on 5-Year Credit Default Swap, 12/20/29 | | | | | Morgan Stanley & Co. International PLC | | | | | | |
Bought Protection on 5-Year Credit Default Swap, 12/20/29 | | | | | Morgan Stanley & Co. International PLC | | | | | | |
Bought Protection on 5-Year Credit Default Swap, 12/20/29 | | | | | | | | | | | |
Bought Protection on 5-Year Credit Default Swap, 12/20/29 | | | | | | | | | | | |
| | | | | | | | | | | |
| The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement. |
OTC Interest Rate Swaptions Purchased
| | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | |
10-Year Interest Rate Swap, 10/31/35 | | | | | | | | | | |
10-Year Interest Rate Swap, 11/01/35 | | | | | | | | | | |
10-Year Interest Rate Swap, 11/01/35 | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
10-Year Interest Rate Swap, 10/31/35 | | | | | | | | | | |
10-Year Interest Rate Swap, 11/01/35 | | | | | | | | | | |
10-Year Interest Rate Swap, 11/01/35 | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Exchange-Traded Options Written
| | | | | |
| | | | | | | |
10-Year U.S. Treasury Note Future | | | | | | | |
| | | | | | | |
| | | | | | | |
Schedule of Investments49
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Exchange-Traded Options Written (continued)
| | | | | |
| | | | | | | |
10-Year U.S. Treasury Note Future | | | | | | | |
5-Year U.S. Treasury Note Future | | | | | | | |
| | | | | | | |
| | | | | | | |
OTC Currency Options Written
| | | | | |
| | | | | | | |
| | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| Goldman Sachs International | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| | | | | | | |
| | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Goldman Sachs International | | | | | | |
| Morgan Stanley & Co. International PLC | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
OTC Credit Default Swaptions Written
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | |
Sold Protection on 5-Year Credit Default Swap, 12/20/29 | | | | | Morgan Stanley & Co. International PLC | | | | | | |
Sold Protection on 5-Year Credit Default Swap, 12/20/29 | | | | | Morgan Stanley & Co. International PLC | | | | | | |
Sold Protection on 5-Year Credit Default Swap, 12/20/29 | | | | | | | | | | | |
Sold Protection on 5-Year Credit Default Swap, 12/20/29 | | | | | | | | | | | |
| | | | | | | | | | | |
OTC Interest Rate Swaptions Written
| | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | |
2-Year Interest Rate Swap, 12/26/26 | | | | | Goldman Sachs International | | | | | |
10-Year Interest Rate Swap, 03/30/35 | | | | | Goldman Sachs International | | | | | |
502024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
OTC Interest Rate Swaptions Written (continued)
| | | | | | | | |
| | | | | | | | | |
| | | | | | | | | | |
10-Year Interest Rate Swap, 04/04/35 | | | | | Goldman Sachs International | | | | | |
10-Year Interest Rate Swap, 04/04/35 | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
2-Year Interest Rate Swap, 12/26/26 | | | | | Goldman Sachs International | | | | | |
10-Year Interest Rate Swap, 03/30/35 | | | | | Goldman Sachs International | | | | | |
10-Year Interest Rate Swap, 04/04/35 | | | | | Goldman Sachs International | | | | | |
10-Year Interest Rate Swap, 04/04/35 | | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Centrally Cleared Credit Default Swaps — Sell Protection
Reference Obligation/Index | Financing
Rate Received
by the Fund | | | | | | Upfront
Premium
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings. |
| The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement. |
Centrally Cleared Inflation Swaps
| | | | | Upfront
Premium
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| | | | |
Eurostat Eurozone HICP Ex Tobacco Unrevised | | | | | | | | | |
Eurostat Eurozone HICP Ex Tobacco Unrevised | | | | | | | | | |
Eurostat Eurozone HICP Ex Tobacco Unrevised | | | | | | | | | |
| | US CPI for All Urban Consumers NSA | | | | | | | |
| | Eurostat Eurozone HICP Ex Tobacco Unrevised | | | | | | | |
| | Eurostat Eurozone HICP Ex Tobacco Unrevised | | | | | | | |
| | Eurostat Eurozone HICP Ex Tobacco Unrevised | | | | | | | |
| | Eurostat Eurozone HICP Ex Tobacco Unrevised | | | | | | | |
| | US CPI for All Urban Consumers NSA | | | | | | | |
| | | | | | | | | |
Schedule of Investments51
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Centrally Cleared Inflation Swaps (continued)
| | | | | Upfront Premium Paid (Received) | Unrealized Appreciation (Depreciation) |
| | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | US CPI for All Urban Consumers NSA | | | | | | | |
| | US CPI for All Urban Consumers NSA | | | | | | | |
| | US CPI for All Urban Consumers NSA | | | | | | | |
| | US CPI for All Urban Consumers NSA | | | | | | | |
| | US CPI for All Urban Consumers NSA | | | | | | | |
| | US CPI for All Urban Consumers NSA | | | | | | | |
| | | | | | | | | |
| | | | |
Centrally Cleared Interest Rate Swaps
| | | | | | Upfront
Premium
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
522024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Centrally Cleared Interest Rate Swaps (continued)
| | | | | | Upfront Premium Paid (Received) | Unrealized Appreciation (Depreciation) |
| | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | China Fixing Repo Rates 7-day, 1.87% | | | | | | | | |
| | China Fixing Repo Rates 7-day, 1.87% | | | | | | | | |
| | China Fixing Repo Rates 7-day, 1.87% | | | | | | | | |
| | | | | | | | | | |
| | China Fixing Repo Rates 7-day, 1.87% | | | | | | | | |
| | China Fixing Repo Rates 7-day, 1.87% | | | | | | | | |
| | China Fixing Repo Rates 7-day, 1.87% | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Schedule of Investments53
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Centrally Cleared Interest Rate Swaps (continued)
| | | | | | Upfront Premium Paid (Received) | Unrealized Appreciation (Depreciation) |
| | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
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| | | | | | | | | | |
| | | | | | | | | | |
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| | | | | | | | | | |
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| | | | | | | | | | |
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| | | | | | | | | | |
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| | | | | | | | | | |
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| | | | | | | | | | |
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| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
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| | | | | | | | | | |
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| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
542024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Centrally Cleared Interest Rate Swaps (continued)
| | | | | | Upfront Premium Paid (Received) | Unrealized Appreciation (Depreciation) |
| | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | |
OTC Credit Default Swaps — Buy Protection
Reference Obligations/Index | Financing
Rate Paid
by the Fund | | | | | | Upfront
Premium
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
American Electric Power Co., Inc. | | | | | | | | | |
| | | Goldman Sachs International | | | | | | |
| | | Goldman Sachs International | | | | | | |
Federal Republic of Brazil | | | | | | | | | |
Federal Republic of Brazil | | | | | | | | | |
| | | | | | | | | |
| | | Goldman Sachs International | | | | | | |
| | | Goldman Sachs International | | | | | | |
| | | | | | | | | |
Schedule of Investments55
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
OTC Interest Rate Swaps
| | | | | | | | | |
| | | | | | | | | Upfront
Premium
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| | | | Morgan Stanley & Co. International PLC | | | | | | | |
| | | | Morgan Stanley & Co. International PLC | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | Goldman Sachs International | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | |
| | | | | | | | | |
| | | | | | | | | Upfront
Premium
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
| | GS Intraday Delta Replication VX Series 5 Excess Return Strategy | | Goldman Sachs International | | | | | | | |
| | GS Intraday Delta Replication VX Series 5 Excess Return Strategy | | Goldman Sachs International | | | | | | | |
| | | | | | | | | | | |
Balances Reported in the Statement of Assets and Liabilities for Centrally Cleared Swaps, OTC Swaps and Options Written
| | | | | |
Centrally Cleared Swaps(a) | | | | | |
| | | | | |
| | | | | |
| Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts. |
562024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| | | | Foreign
Currency
Exchange
Contracts | | | |
Assets — Derivative Financial Instruments | | | | | | | |
Futures contracts
Unrealized appreciation on futures contracts(a) | | | | | | | |
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts | | | | | | | |
Options purchased
Investments at value — unaffiliated(b) | | | | | | | |
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a) | | | | | | | |
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid | | | | | | | |
| | | | | | | |
Liabilities — Derivative Financial Instruments | | | | | | | |
Futures contracts
Unrealized depreciation on futures contracts(a) | | | | | | | |
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts | | | | | | | |
Options written
Options written at value | | | | | | | |
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a) | | | | | | | |
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received | | | | | | | |
| | | | | | | |
| Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, 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). |
| Includes options purchased at value as reported in the Schedule of Investments. |
For the period ended October 31, 2024, the effect of derivative financial instruments in the Statement of Operations was as follows:
| | | | Foreign
Currency
Exchange
Contracts | | | |
Net Realized Gain (Loss) from: | | | | | | | |
| | | | | | | |
Forward foreign currency exchange contracts | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | |
| | | | | | | |
Forward foreign currency exchange contracts | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Options purchased are included in net realized gain (loss) from investments — unaffiliated. |
| Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated. |
Schedule of Investments57
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| |
Average notional value of contracts — long | |
Average notional value of contracts — short | |
Forward foreign currency exchange contracts: | |
Average amounts purchased — in USD | |
Average amounts sold — in USD | |
| |
Average value of option contracts purchased | |
Average value of option contracts written | |
Average notional value of swaption contracts purchased | |
Average notional value of swaption contracts written | |
| |
Average notional value — buy protection | |
Average notional value — sell protection | |
| |
Average notional value — pays fixed rate | |
Average notional value — receives fixed rate | |
| |
Average notional value — pays fixed rate | |
Average notional value — receives fixed rate | |
| |
| |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
| | |
Derivative Financial Instruments | | |
| | |
Forward foreign currency exchange contracts | | |
| | |
Swaps — centrally cleared | | |
| | |
Total derivative assets and liabilities in the Statement of Assets and Liabilities | | |
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | | |
Total derivative assets and liabilities subject to an MNA | | |
| Includes options purchased at value which is included in Investments at value — unaffiliated in the Statement of Assets and Liabilities and reported in the Schedule of Investments. |
| Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums (paid/received) in the Statement of Assets and Liabilities. |
The following table presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| Derivative
Assets
Subject to
an MNA by
Counterparty | Derivatives
Available
for Offset(a) | Non-Cash
Collateral
Received(b) | Cash
Collateral
Received(b) | Net Amount
of Derivative
Assets(c)(d) |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Goldman Sachs International | | | | | |
Morgan Stanley & Co. International PLC | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
582024 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
| Derivative
Liabilities
Subject to
an MNA by
Counterparty | Derivatives
Available
for Offset(a) | Non-Cash
Collateral
Pledged(b) | | Net Amount
of Derivative
Liabilities(c)(e) |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Goldman Sachs International | | | | | |
Morgan Stanley & Co. International PLC | | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA. |
| Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes. |
| Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized. |
| Net amount represents the net amount receivable from the counterparty in the event of default. |
| Net amount represents the net amount payable due to counterparty in the event of default. Net amount may be offset further by the options written receivable/payable on the Statement of Assets and Liabilities. |
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.
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Foreign Agency Obligations | | | | |
| | | | |
Non-Agency Mortgage-Backed Securities | | | | |
| | | | |
| | | | |
| | | | |
U.S. Government Sponsored Agency Securities | | | | |
U.S. Treasury Obligations | | | | |
| | | | |
Foreign Agency Obligations | | | | |
| | | | |
U.S. Treasury Obligations | | | | |
| | | | |
| | | | |
Foreign Currency Exchange Contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
U.S. Treasury Obligations | | | | |
| | | | |
| | | | |
Derivative Financial Instruments(a) | | | | |
| | | | |
| | | | |
Schedule of Investments59
Schedule of Investments (continued)October 31, 2024
BlackRock Diversified Fixed Income Fund
Fair Value Hierarchy as of Period End (continued)
| | | | |
Derivative Financial Instruments(a) | | | | |
Foreign Currency Exchange Contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Foreign Currency Exchange Contracts | | | | |
| | | | |
| | | | |
| | | | |
| Derivative financial instruments are swaps, futures contracts, forward foreign currency exchange contracts and options written. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument and options written are shown at value. |
See notes to financial statements.
602024 BlackRock Annual Financial Statements and Additional Information
Statement of Assets and LiabilitiesOctober 31, 2024
| BlackRock
Diversified Fixed
Income Fund |
| |
Investments, at value — unaffiliated(a)(b) | |
Investments, at value — affiliated(c) | |
| |
Collateral — exchange-traded options written | |
Collateral — OTC derivatives | |
Collateral — TBA commitments | |
| |
| |
Foreign currency, at value(d) | |
| |
| |
| |
Securities lending income — affiliated | |
| |
| |
| |
Variation margin on futures contracts | |
| |
Unrealized appreciation on: | |
Forward foreign currency exchange contracts | |
| |
| |
| |
| |
Investments sold short, at value(e) | |
| |
Collateral on securities loaned | |
Options written, at value(f) | |
TBA sale commitments, at value(g) | |
| |
| |
| |
| |
Deferred foreign capital gain tax | |
| |
| |
Trustees’ and Officer’s fees | |
| |
| |
Variation margin on futures contracts | |
Variation margin on centrally cleared swaps | |
| |
Statement of Assets and Liabilities61
Statement of Assets and Liabilities (continued)October 31, 2024 | BlackRock Diversified Fixed Income Fund |
Unrealized depreciation on: | |
Forward foreign currency exchange contracts | |
| |
| |
Commitments and contingent liabilities | |
| |
| |
| |
| |
| |
(a) Investments, at cost—unaffiliated | |
(b) Securities loaned, at value | |
(c) Investments, at cost—affiliated | |
(d) Foreign currency, at cost | |
(e) Proceeds received from investments sold short | |
| |
(g) Proceeds from TBA sale commitments | |
622024 BlackRock Annual Financial Statements and Additional Information
Statement of Assets and Liabilities (continued)October 31, 2024
| BlackRock
Diversified Fixed
Income Fund |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
See notes to financial statements.
Statement of Assets and Liabilities63
Statement of OperationsYear Ended October 31, 2024
| BlackRock
Diversified Fixed
Income Fund |
| |
| |
| |
Securities lending income — affiliated — net | |
| |
| |
| |
| |
Administration — class specific | |
| |
| |
| |
Total expenses excluding interest expense | |
Interest expense — unaffiliated | |
| |
| |
Administration fees waived by the Administrator — class specific | |
Fees waived and/or reimbursed by the Manager | |
Fees waived and/or reimbursed by the Administrator/Manager | |
Total expenses after fees waived and/or reimbursed | |
| |
REALIZED AND UNREALIZED GAIN (LOSS) | |
Net realized gain (loss) from: | |
Investments — unaffiliated(a) | |
| |
Forward foreign currency exchange contracts | |
Foreign currency transactions | |
| |
| |
| |
| |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated(b) | |
| |
Forward foreign currency exchange contracts | |
Foreign currency translations | |
| |
| |
Short sales — unaffiliated | |
| |
| |
Net realized and unrealized gain | |
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | |
(a) Net of foreign capital gain tax and capital gain tax refund, if applicable of | |
(b) Net of increase in deferred foreign capital gain tax of | |
See notes to financial statements.
642024 BlackRock Annual Financial Statements and Additional Information
Statements of Changes in Net Assets
| BlackRock Diversified
Fixed Income Fund |
| | |
|
INCREASE (DECREASE) IN NET ASSETS | | |
| | |
| | |
| | |
Net change in unrealized appreciation (depreciation) | | |
Net increase (decrease) in net assets resulting from operations | | |
DISTRIBUTIONS TO SHAREHOLDERS(b) | | |
| | |
| | |
Decrease in net assets resulting from distributions to shareholders | | |
CAPITAL SHARE TRANSACTIONS | | |
Net increase in net assets derived from capital share transactions | | |
| | |
Total increase in net assets | | |
| | |
| | |
| Commencement of operations. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
Statements of Changes in Net Assets65
Financial Highlights(For a share outstanding throughout each period)
| BlackRock Diversified Fixed Income Fund |
| |
| | |
|
Net asset value, beginning of period | | |
| | |
Net realized and unrealized gain (loss) | | |
Net increase (decrease) from investment operations | | |
| | |
From net investment income | | |
| | |
| | |
Net asset value, end of period | | |
| | |
| | |
Ratios to Average Net Assets(f) | | |
| | |
Total expenses after fees waived and/or reimbursed | | |
| | |
| | |
Net assets, end of period (000) | | |
Portfolio turnover rate(h) | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows: |
| | |
|
Portfolio turnover rate (excluding MDRs) | | |
See notes to financial statements.
662024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Diversified Fixed Income Fund (continued) |
| |
| | |
|
Net asset value, beginning of period | | |
| | |
Net realized and unrealized gain (loss) | | |
Net increase (decrease) from investment operations | | |
| | |
From net investment income | | |
| | |
| | |
Net asset value, end of period | | |
| | |
| | |
Ratios to Average Net Assets(g) | | |
| | |
Total expenses after fees waived and/or reimbursed | | |
| | |
| | |
Net assets, end of period (000) | | |
Portfolio turnover rate(i) | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| Includes payment from an affiliate, which had no impact on the Fund’s total return. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows: |
| | |
|
Portfolio turnover rate (excluding MDRs) | | |
See notes to financial statements.
Notes to Financial Statements
BlackRock Funds III (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 Delaware statutory trust. BlackRock Diversified Fixed Income 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.
| | | |
Institutional and Class K Shares | | | |
The Fund, together with certain other registered investment companies advised by BlackRock Fund Advisors (“BFA” or 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. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, and payment-in-kind interest are recognized daily on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.
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.
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 from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
682024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
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:
•Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.
•Exchange-traded funds (“ETFs”) and closed-end funds 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. ETFs and closed-end funds 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.
•Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE based on that day’s prevailing forward exchange rate for the underlying currencies.
•Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options and options on swaps (“swaptions”) are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.
•Interest rate, credit default, inflation and currency swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate market data and discounted cash flows. Total return swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using models that incorporate market trades and fair value of the underlying reference instruments.
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the 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.
Notes to Financial Statements69
Notes to Financial Statements (continued)
For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs:
(i) recent market transactions, including secondary market transactions, merger or acquisition activity and subsequent rounds of financing in the underlying investment or comparable issuers
(ii) recapitalizations and other transactions across the capital structure
(iii) market or relevant indices multiples of comparable issuers
(iv) future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks
(v) quoted prices for similar investments or assets in active markets
(vi) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates
(vii) audited or unaudited financial statements, investor communications and Private Company financial or operational metrics
(viii) relevant market news and other public sources.
Investments in series of preferred stock issued by Private Companies are typically valued utilizing a market approach to determine the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.
Private Companies are not subject to public company disclosure, timing, and reporting standards applicable to other investments held by the Fund. Certain information made available by a Private Company is as of a date that is earlier than the date the Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Fund could receive upon the sale of the investment.
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 Private Companies that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4.
SECURITIES AND OTHER INVESTMENTS
Asset-Backed and Mortgage-Backed Securities: Asset-backed securities are generally issued as pass-through certificates or as debt instruments. Asset-backed securities issued as pass-through certificates represent undivided fractional ownership interests in an underlying pool of assets. Asset-backed securities issued as debt instruments, which are also known as collateralized obligations, are typically issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security will have the effect of shortening the maturity of the security. In addition, a fund may subsequently have to reinvest the proceeds at lower interest rates. If a fund has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.
For mortgage pass-through securities (the “Mortgage Assets”) there are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by Ginnie Mae are guaranteed as to the timely payment of principal and interest by Ginnie Mae and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities
702024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States, but are supported by the right of the issuer to borrow from the U.S. Treasury.
Non-agency mortgage-backed securities are securities issued by non-governmental issuers and have no direct or indirect government guarantees of payment and are subject to various risks. Non-agency mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair a borrower’s ability to repay its loans.
Collateralized Debt Obligations: Collateralized debt obligations (“CDOs”), including collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”), are types of asset-backed securities. A CDO is an entity that is backed by a diversified pool of debt securities (CBOs) or syndicated bank loans (CLOs). The cash flows of the CDO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CDO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.
Multiple Class Pass-Through Securities: Multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities, may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by a pool of residential or commercial mortgage loans or Mortgage Assets. The payments on these are used to make payments on the CMOs or multiple pass-through securities. Multiple class pass-through securities represent direct ownership interests in the Mortgage Assets. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, a fund’s initial investment in the IOs may not fully recoup.
Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.
Capital Securities and Trust Preferred Securities: Capital securities, including trust preferred securities, are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics. In the case of trust preferred securities, an affiliated business trust of a corporation issues these securities, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured with either a fixed or adjustable coupon that can have either a perpetual or stated maturity date. For trust preferred securities, the issuing bank or corporation pays interest to the trust, which is then distributed to holders of these securities as a dividend. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. These securities generally are rated below that of the issuing company’s senior debt securities and are freely callable at the issuer’s option.
Forward Commitments, When-Issued and Delayed Delivery Securities: The Fund may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Fund may purchase securities under such conditions with the intention of actually acquiring them but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions. These types of securities may be considered unfunded and may obligate the Fund to make future cash payments. An unfunded commitment is marked-to-market and any unrealized appreciation (depreciation) is separately presented in the Statement of Assets and Liabilities and Statement of Operations.
TBA Commitments: TBA commitments are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. When entering into TBA commitments, a fund may take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date, if there are expenses or delays in connection with the TBA transactions, or if the counterparty fails to complete the transaction.
In order to better define contractual rights and to secure rights that will help a fund mitigate its counterparty risk, TBA commitments may be entered into by a fund under Master Securities Forward Transaction Agreements (each, an “MSFTA”). An MSFTA typically contains, among other things, collateral posting terms and netting provisions in the event of default and/or termination event. The collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of the collateral currently pledged by a fund and the counterparty. Cash collateral that has been pledged to cover the obligations of a fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral for TBA commitments or cash received as collateral for TBA commitments, respectively. Non-cash collateral pledged by a fund, if any, is noted in the Schedule of Investments. Typically, a fund is permitted to sell, re-pledge or use the collateral it receives; however, the counterparty is not permitted to do so. To the extent amounts due to a fund are not fully collateralized, contractually or otherwise, a fund bears the risk of loss from counterparty non-performance.
Notes to Financial Statements71
Notes to Financial Statements (continued)
Mortgage Dollar Roll Transactions: The Fund may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (i.e., same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, a fund is not entitled to receive interest and principal payments on the securities sold. Mortgage dollar roll transactions are treated as purchases and sales and a fund realizes gains and losses on these transactions. Mortgage dollar rolls involve the risk that the market value of the securities that a fund is required to purchase may decline below the agreed upon repurchase price of those securities.
Short Sale Transactions: In short sale transactions, a fund sells a security it does not hold in anticipation of a decline in the market price of that security. When a fund makes a short sale, it will borrow the security sold short and deliver the fixed-income security to the counterparty to which it sold the security short. An amount equal to the proceeds received by a fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. A fund is required to repay the counterparty interest on the security sold short, which, if applicable, is included in interest expense in the Statement of Operations. A fund is exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of an unlimited loss since there is an unlimited potential for the market price of the security sold short to increase. A gain is limited to the price at which a fund sold the security short. A realized gain or loss is recognized upon the termination of a short sale if the market price is either less than or greater than the proceeds originally received. There is no assurance that a fund will be able to close out a short position at a particular time or at an acceptable price.
Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Institutional Trust Company, N.A. (“BTC”), if any, is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Fund’s Schedule of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.
Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the Fund’s securities on loan by counterparty which are subject to offset under an MSLA:
| Securities
Loaned at Value | | Non-Cash Collateral
Received, at Fair Value(a) | |
BMO Capital Markets Corp. | | | | |
HSBC Securities (USA), Inc. | | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
Mitsubishi UFJ Securities Holdings Co., Ltd. | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Wells Fargo Securities LLC | | | | |
| | | | |
| Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Fund’s Statement of Assets and Liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock Finance, Inc.. BlackRock Finance, Inc.’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value
722024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.
5.
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 OTC.
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the 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.
Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).
A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Fund are denominated and in some cases, may be used to obtain exposure to a particular market. The contracts are traded OTC and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount(s) reflected in the Statement of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statement of Assets and Liabilities. The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Fund.
Options: The Fund may purchase and write call and put options to increase or decrease its exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.
A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.
Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value – unaffiliated and options written at value, respectively, in the Statement of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statement of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statement of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Fund writes a call option, such option is typically “covered,” meaning that it holds the underlying instrument subject to being called by the option counterparty. When the Fund writes a put option, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statement of Assets and Liabilities.
•Swaptions — The Fund may purchase and write options on swaps (“swaptions”) primarily to preserve a return or spread on a particular investment or portion of the Fund’s holdings, as a duration management technique or to protect against an increase in the price of securities it anticipates purchasing at a later date. The purchaser and writer of a swaption is buying or granting the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.
•Foreign currency options — The Fund may purchase and write foreign currency options, foreign currency futures and options on foreign currency futures to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk). Foreign currency options give the purchaser the right to buy from or sell to the writer a foreign currency at any time before the expiration of the option.
Notes to Financial Statements73
Notes to Financial Statements (continued)
•Barrier options – The Fund may purchase and write a variety of options with non-standard payout structures or other features (“barrier options”) that are generally traded OTC.
The Fund may invest in various types of barrier options, including down-and-out options, down-and-in options, double no-touch options, one-touch options, instant one-touch options, up-and-out options and up-and-in options. Down-and-out options expire worthless to the purchaser if the price of the underlying instrument falls below a specific barrier price level prior to the expiration date. Down-and-in options expire worthless to the purchaser unless the price of the underlying instrument falls below a specific barrier price level prior to the expiration date. Double no-touch options provide the purchaser an agreed-upon payout if the price of the underlying instrument does not reach or surpass predetermined barrier price levels prior to the option’s expiration date. One-touch options and instant one-touch options provide the purchaser an agreed-upon payout if the price of the underlying instrument reaches or surpasses predetermined barrier price levels prior to the expiration date. Up-and-out options expire worthless to the purchaser if the price of the underlying instrument increases beyond a predetermined barrier price level prior to the expiration date. Up-and-in options can only be exercised when the price of the underlying instrument increases beyond a predetermined barrier price level.
In purchasing and writing options, the Fund bears the risk of an unfavorable change in the value of the underlying instrument or the risk that it may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Fund purchasing or selling a security when it otherwise would not, or at a price different from the current market value.
Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).
For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.
In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the CCP becomes the Fund’s counterparty on the swap. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker variation margin. Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty are amortized over the term of the contract and recorded as realized gains (losses) in the Statement of Operations, including those at termination.
•Credit default swaps — Credit default swaps are entered into to manage exposure to the market or certain sectors of the market, to reduce risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which a fund is not otherwise exposed (credit risk).
The Fund may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Fund will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.
•Interest rate swaps — Interest rate swaps are entered into to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).
Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In more complex interest rate swaps, the notional principal amount may decline (or amortize) over time.
•Forward swaps — The Fund may enter into forward interest rate swaps and forward total return swaps. In a forward swap, the Fund and the counterparty agree to make periodic net payments beginning on a specified date or a net payment at termination.
•Inflation swaps — Inflation swaps are entered into to gain or reduce exposure to inflation (inflation risk). In an inflation swap, one party makes fixed interest payments on a notional principal amount in exchange for another party’s variable payments based on an inflation index, such as the Consumer Price Index.
Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
742024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.
Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty.
Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. The Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Fund from the counterparties are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, the Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.
For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.
6.
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, 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:
The Manager contractually agreed to waive 0.10% of its investment advisory fees 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. 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 Manager waived $803,491 pursuant to this agreement.
With respect to the Fund, the Manager entered into a sub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of the Manager. The Manager pays BIL for services it provides for that portion of the Fund for which BIL acts as Sub-Adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Fund to the Manager.
Administration: The Trust, on behalf of the Fund, entered into an Administration Agreement with BlackRock Advisors, LLC (“BAL” or the “Administrator”), to provide general administrative services (other than investment advice and related portfolio activities). BAL has agreed to bear all of the Fund’s ordinary operating expenses, excluding, generally, investment advisory fees, distribution fees, brokerage and other expenses related to the execution of portfolio transactions, extraordinary expenses and certain other expenses which are borne by the Fund. BAL may delegate certain of its administration duties to sub-administrators. For such services, BAL 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 0.20% of the average daily net assets of the Fund’s Institutional Shares and 0.10% of the average daily net assets of the Fund’s Class K Shares.
For the year ended October 31, 2024, the following table shows the class specific administration fees borne directly by each share class of the Fund:
| | | |
BlackRock Diversified Fixed Income Fund | | | |
From time to time, BAL may waive such fees in whole or in part. Any such waiver will reduce the expenses of the Fund and, accordingly, have a favorable impact on its performance. BAL contractually agreed to waive 0.10% of its administration fees for each of Institutional Shares and Class K Shares 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. These
Notes to Financial Statements75
Notes to Financial Statements (continued)
amounts waived by the Administrator are included in administration fees waived by the Administrator — class specific in the Statement of Operations. For the year ended October 31, 2024, class specific expense waivers were as follows:
| Administration Fees Waived by the Administrator- Class Specific |
| | | |
BlackRock Diversified Fixed Income Fund | | | |
Expense Waivers and Reimbursements: 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 Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Fund. 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 $68,907.
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. 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 Manager waived $223 in investment advisory fees pursuant to this arrangement.
The fees and expenses of the Independent Trustees, counsel to the Independent Trustees and the Fund’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Fund. The Administrator and the Manager have contractually agreed to reimburse the Fund or provide an offsetting credit against the administration and/or investment advisory fees paid by the Fund in an amount equal to these independent expenses as applicable, through June 30, 2034. On July 1 of each year, the waiver agreement will renew automatically for an additional one year so that the agreement will have a perpetual ten year term. 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. The amount waived is included in fees waived and/or reimbursed by the Administrator/Manager in the Statement of Operations. For the year ended October 31, 2024, the amount waived was $50,551.
Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BTC, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by the Manager or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. BlackRock Cash Funds: Institutional may impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money market fund. Additionally, BlackRock Cash Funds: Institutional will impose a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the amount of the fee is less than 0.01% of the value of the shares redeemed. BlackRock Cash Funds: Institutional will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If BlackRock Cash Funds: Institutional cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.
Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. The Fund retains a portion of the securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the year ended October 31, 2024, the Fund paid BTC $12,125 for securities lending agent services.
Interfund Lending: In accordance with an exemptive order (the “Order”) from the 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
762024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
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.
For the year ended October 31, 2024, purchases and sales of investments, including paydowns/payups and mortgage dollar rolls and excluding short-term securities, were as follows:
| U.S. Government Securities | |
| | | | |
BlackRock Diversified Fixed Income Fund | | | | |
For the year ended October 31, 2024, purchases and sales related to mortgage dollar rolls were $1,512,441,371 and $1,511,498,530, respectively.
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:
| | |
BlackRock Diversified Fixed Income Fund | | |
| | |
As of October 31, 2024, the tax components of accumulated earnings (loss) were as follows:
| Undistributed
Ordinary Income | | |
BlackRock Diversified Fixed Income Fund | | | |
| The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures and foreign currency contracts, the accounting for swap agreements and amortization methods for premiums and discounts on fixed income securities. |
During the year ended October 31, 2024, the Fund utilized the following amount of its capital loss carryforward:
| |
BlackRock Diversified Fixed Income Fund | |
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:
| | Gross Unrealized
Appreciation | Gross Unrealized
Depreciation | Net Unrealized
Appreciation
(Depreciation) |
BlackRock Diversified Fixed Income Fund | | | | |
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
Notes to Financial Statements77
Notes to Financial Statements (continued)
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.
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.
The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to mandatory and discretionary liquidity fees under certain circumstances.
Market Risk: The Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force the Fund to reinvest in lower yielding securities. The Fund may also be exposed to reinvestment risk, which is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below the Fund portfolio’s current earnings rate.
Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for issuers of other securities.
Valuation Risk: The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment.
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.
For OTC options purchased, the Fund bears the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral held by the Fund should the counterparty fail to perform under the contracts. Options written by the Fund do not typically give rise to counterparty credit risk, as options written generally obligate the Fund, and not the counterparty, to perform. The Fund may be exposed to counterparty credit risk with respect to options written to the extent the Fund deposits collateral with its counterparty to a written option.
With exchange-traded options purchased and exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.
782024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
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 significant portion of its assets in fixed-income securities and/or uses derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. The Fund may be subject to a greater risk of rising interest rates during a period of historically low interest rates. The Federal Reserve has raised the federal funds rate as part of its efforts to address inflation. Changing interest rates may have unpredictable effects on markets, may result in heightened market volatility, and could negatively impact the Fund’s performance.
The Fund invests a significant portion of its assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Fund invests.
The Fund invests a significant portion of its assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. When a fund concentrates its investments in this manner, it assumes a greater risk of prepayment or payment extension by securities issuers. Changes in economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions. Investment percentages in these securities are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
11.
CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for each class were as follows:
| | |
| | | | |
BlackRock Diversified Fixed Income Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| Commencement of operations. |
| The share class commenced operations on September 19, 2023. |
| On the close of business on September 18, 2023, all of the issued and outstanding shares were redesignated as Class K Shares. |
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.
Notes to Financial Statements79
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of BlackRock Funds III and Shareholders of BlackRock Diversified Fixed Income Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock Diversified Fixed Income Fund (one of the funds constituting BlackRock Funds III, referred to hereafter as the "Fund") as of October 31, 2024, the related statement of operations for the year ended October 31, 2024, the statement of changes in net assets for the year ended October 31, 2024 and for the period January 18, 2023 (commencement of operations) through October 31, 2023, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2024, the results of its operations for the year then ended, the changes in its net assets for the year ended October 31, 2024 and for the period January 18, 2023 (commencement of operations) through October 31, 2023 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements 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 of these financial statements 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 are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, 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. 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. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agents and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 20, 2024
We have served as the auditor of one or more BlackRock investment companies since 2000.
802024 BlackRock Annual Financial Statements and Additional Information
Important Tax Information (unaudited)
The Fund hereby designates the following amount, or maximum amount allowable by law, of distributions from direct federal obligation interest for the for the fiscal year ended October 31, 2024:
| Federal Obligation
Interest |
BlackRock Diversified Fixed Income Fund | |
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:
| |
BlackRock Diversified Fixed Income Fund | |
The Fund hereby designates the following amount, or maximum amount allowable by law, as interest-related dividends and qualified short-term capital gains eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended October 31, 2024:
| Interest-
Related
Dividends | Qualified
Short-Term
Capital Gains |
BlackRock Diversified Fixed Income Fund | | |
Important Tax Information81
Changes in and Disagreements with Accountants
Remuneration Paid to Trustees, Officers, and Others
Each of BAL and BFA has contractually agreed to reimburse, or provide offsetting credits to, the Fund for the Fund’s allocable portion of the fees and expenses of the independent trustees of the Trust, counsel to such independent trustees and the independent registered public accounting firm.
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.
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.
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.
Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
Fund and Service Providers
Investment Adviser
BlackRock Fund Advisors
San Francisco, CA 94105
BlackRock Advisors, LLC
Wilmington, DE 19809
BlackRock International Limited
Edinburgh, EH3 8BL
United Kingdom
Accounting Agent and Custodian
State Street Bank and Trust Company
Boston, MA 02114
BNY Mellon Investment Servicing (US) Inc.
Wilmington, DE 19809
822024 BlackRock Annual Financial Statements and Additional Information
Additional Information (continued)
Fund and Service Providers (continued)
Distributor
BlackRock Investments, LLC
New York, NY 10001
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
Philadelphia, PA 19103
Legal Counsel
Sidley Austin LLP
New York, NY 10019
100 Bellevue Parkway
Wilmington, DE 19809
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement
The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Funds III (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 “Advisory Agreement”) between the Trust, on behalf of BlackRock Diversified Fixed Income Fund (the “Fund”), and BlackRock Fund Advisors (the “Manager”), the Fund’s investment advisor. The Board also considered the approval to continue the sub-advisory agreement (the “Sub-Advisory Agreement”) between the Manager and BlackRock International Limited (the “Sub-Advisor”), with respect to the Fund. The Manager and Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreement and Sub-Advisory Agreement are referred to herein as the “Agreements.”
Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Board considers the approval of the continuation of the Agreements 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 Agreements. In considering the renewal of the Agreements, 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[s], 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) 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 Agreements. 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 Agreements 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 Agreements 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.
842024 BlackRock Annual Financial Statements and Additional Information
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)
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.
The Board noted that the engagement of the Sub-Advisor with respect to the Fund facilitates the provision of investment advice and trading by investment personnel out of non-U.S. jurisdictions. The Board considered that this arrangement provides additional flexibility to the portfolio management team, which may benefit the Fund and its shareholders.
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 since-inception period reported, the Fund ranked in the third quartile 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. The Board and BlackRock reviewed the Fund’s underperformance relative to its Morningstar Category during the applicable period.
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
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement85
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)
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 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 Agreements 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 has contractually agreed to waive a portion of its administration and advisory fees payable by the Fund. The Board also noted that BlackRock and its affiliates have contractually agreed to reimburse or otherwise compensate the Fund for certain other fees and expenses.
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 Agreements, 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.
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 Advisory Agreement between the Manager and the Trust, on behalf of the Fund, for a one-year term ending June 30, 2025, and the Sub-Advisory Agreement between the Manager and the Sub-Advisor, with respect to 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 Agreements were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Agreements, 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.
862024 BlackRock Annual Financial Statements and Additional Information
Glossary of Terms Used in this Report
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| Overnight Brazil Interbank Deposit (CETIP) |
| Certificate of Deposit Rate |
| Collateralized Loan Obligation |
| Constant Maturity Treasury |
| Columbia Overnight Interbank Reference Rate |
| Overnight Bank of Canada Repo Rate |
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| Designated Activity Company |
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| Euro Interbank Offered Rate |
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| Hong Kong Interbank Offered Rate |
| Johannesburg Interbank Average Rate |
| London Interbank Offered Rate |
| Mumbai Interbank Offered Rate |
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| Mexico Interbank TIIE 28-Day |
| Norwegian Interbank Offered Rate |
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| Prague Interbank Offer Rate |
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| Real Estate Investment Trust |
| Real Estate Mortgage Investment Conduit |
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| Societe en Commandite par Actions |
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| Secured Overnight Financing Rate |
| Sterling Overnight Interbank Average Rate |
| Singapore Overnight Rate Average |
| Swiss Average Overnight Rate |
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| Structured Agency Credit Risk |
| Stockholm Interbank Offered Rate |
| Taipei Interbank Offered Rate |
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| Thai Overnight Repurchase Rate |
| United Kingdom Retail Price Index |
| Warsaw Interbank Offered Rate |
Glossary of Terms Used in This Report87
Want to know more?
blackrock.com | 800-441-7762
This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the 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.
October 31, 2024
2024 Annual Financial Statements and Additional Information |
|
• BlackRock LifePath® ESG Index Retirement Fund |
• BlackRock LifePath® ESG Index 2030 Fund |
• BlackRock LifePath® ESG Index 2035 Fund |
• BlackRock LifePath® ESG Index 2040 Fund |
• BlackRock LifePath® ESG Index 2045 Fund |
• BlackRock LifePath® ESG Index 2050 Fund |
• BlackRock LifePath® ESG Index 2055 Fund |
• BlackRock LifePath® ESG Index 2060 Fund |
• BlackRock LifePath® ESG Index 2065 Fund |
• BlackRock LifePath® ESG Index 2070 Fund |
Not FDIC Insured • May Lose Value • No Bank Guarantee |
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index Retirement Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF(b) | | | |
iShares ESG Aware MSCI EM ETF(b) | | | |
iShares ESG Aware MSCI USA ETF(b) | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 60.3% |
iShares ESG Aware U.S. Aggregate Bond ETF(b) | | | |
| | | |
| |
Money Market Funds — 21.6% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d) | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.83%(c) | | | |
| |
Total Investments — 121.8%
(Cost: $8,689,426) | |
Liabilities in Excess of Other Assets — (21.8)% | |
| |
| |
| All or a portion of this security is on loan. |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Schedule of Investments (continued)October 31, 2024
BlackRock LifePath® ESG Index Retirement 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.
42024 BlackRock Annual Financial Statements and Additional Information
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index 2030 Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF(b) | | | |
iShares ESG Aware MSCI EM ETF(b) | | | |
iShares ESG Aware MSCI USA ETF(b) | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF(b) | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 46.4% |
iShares ESG Aware U.S. Aggregate Bond ETF(b) | | | |
| | | |
| |
| | | |
|
Money Market Funds — 18.5% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d) | | | |
Total Investments — 118.6%
(Cost: $6,281,814) | |
Liabilities in Excess of Other Assets — (18.6)% | |
| |
| |
| All or a portion of this security is on loan. |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares(c) | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
| As of period end, the entity is no longer held. |
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.
Schedule of Investments (continued)October 31, 2024
BlackRock LifePath® ESG Index 2030 Fund
Fair Value Hierarchy as of Period End (continued)
See notes to financial statements.
62024 BlackRock Annual Financial Statements and Additional Information
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index 2035 Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF(b) | | | |
iShares ESG Aware MSCI EM ETF(b) | | | |
iShares ESG Aware MSCI USA ETF | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF(b) | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 34.4% |
iShares ESG Aware U.S. Aggregate Bond ETF | | | |
| | | |
| |
Money Market Funds — 19.8% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d) | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.83%(c) | | | |
| |
Total Investments — 120.0%
(Cost: $4,258,397) | |
Liabilities in Excess of Other Assets — (20.0)% | |
| |
| |
| All or a portion of this security is on loan. |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Schedule of Investments (continued)October 31, 2024
BlackRock LifePath® ESG Index 2035 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.
82024 BlackRock Annual Financial Statements and Additional Information
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index 2040 Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF(b) | | | |
iShares ESG Aware MSCI EM ETF(b) | | | |
iShares ESG Aware MSCI USA ETF(b) | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF(b) | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 23.0% |
iShares ESG Aware U.S. Aggregate Bond ETF(b) | | | |
| | | |
| |
Money Market Funds — 27.2% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d) | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.83%(c) | | | |
| |
Total Investments — 127.2%
(Cost: $11,476,414) | |
Liabilities in Excess of Other Assets — (27.2)% | |
| |
| |
| All or a portion of this security is on loan. |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Schedule of Investments (continued)October 31, 2024
BlackRock LifePath® ESG Index 2040 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.
102024 BlackRock Annual Financial Statements and Additional Information
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index 2045 Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF(b) | | | |
iShares ESG Aware MSCI EM ETF(b) | | | |
iShares ESG Aware MSCI USA ETF | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF(b) | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 12.4% |
iShares ESG Aware U.S. Aggregate Bond ETF(b) | | | |
| | | |
| |
Money Market Funds — 24.0% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d) | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.83%(c) | | | |
| |
Total Investments — 124.0%
(Cost: $7,365,796) | |
Liabilities in Excess of Other Assets — (24.0)% | |
| |
| |
| All or a portion of this security is on loan. |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Schedule of Investments11
Schedule of Investments (continued)October 31, 2024
BlackRock LifePath® ESG Index 2045 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.
122024 BlackRock Annual Financial Statements and Additional Information
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index 2050 Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF(b) | | | |
iShares ESG Aware MSCI EM ETF(b) | | | |
iShares ESG Aware MSCI USA ETF | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF(b) | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 4.8% |
iShares ESG Aware U.S. Aggregate Bond ETF | | | |
| | | |
| |
Money Market Funds — 26.0% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d) | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.83%(c) | | | |
| |
Total Investments — 126.0%
(Cost: $8,470,934) | |
Liabilities in Excess of Other Assets — (26.0)% | |
| |
| |
| All or a portion of this security is on loan. |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Schedule of Investments13
Schedule of Investments (continued)October 31, 2024
BlackRock LifePath® ESG Index 2050 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.
142024 BlackRock Annual Financial Statements and Additional Information
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index 2055 Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF(b) | | | |
iShares ESG Aware MSCI EM ETF(b) | | | |
iShares ESG Aware MSCI USA ETF | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF(b) | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 1.5% |
iShares ESG Aware U.S. Aggregate Bond ETF(b) | | | |
| | | |
| |
Money Market Funds — 31.4% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d) | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.83%(c) | | | |
| |
Total Investments — 131.5%
(Cost: $5,216,842) | |
Liabilities in Excess of Other Assets — (31.5)% | |
| |
| |
| All or a portion of this security is on loan. |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Schedule of Investments15
Schedule of Investments (continued)October 31, 2024
BlackRock LifePath® ESG Index 2055 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.
162024 BlackRock Annual Financial Statements and Additional Information
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index 2060 Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF(b) | | | |
iShares ESG Aware MSCI EM ETF(b) | | | |
iShares ESG Aware MSCI USA ETF(b) | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF(b) | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 1.0% |
iShares ESG Aware U.S. Aggregate Bond ETF(b) | | | |
| | | |
| |
Money Market Funds — 41.2% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d) | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.83%(c) | | | |
| |
Total Investments — 139.6%
(Cost: $7,119,510) | |
Liabilities in Excess of Other Assets — (39.6)% | |
| |
| |
| All or a portion of this security is on loan. |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Schedule of Investments17
Schedule of Investments (continued)October 31, 2024
BlackRock LifePath® ESG Index 2060 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.
182024 BlackRock Annual Financial Statements and Additional Information
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index 2065 Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF(b) | | | |
iShares ESG Aware MSCI EM ETF(b) | | | |
iShares ESG Aware MSCI USA ETF(b) | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF(b) | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 1.0% |
iShares ESG Aware U.S. Aggregate Bond ETF | | | |
| | | |
| |
Money Market Funds — 34.8% | |
BlackRock Cash Funds: Institutional, SL Agency Shares, 5.01%(c)(d) | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.83%(c) | | | |
| |
Total Investments — 135.0%
(Cost: $4,509,018) | |
Liabilities in Excess of Other Assets — (35.0)% | |
| |
| |
| All or a portion of this security is on loan. |
| Annualized 7-day yield as of period end. |
| All or a portion of this security was purchased with the cash collateral from loaned securities. |
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:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares | | | | | | | | | |
BlackRock Cash Funds: Treasury, SL Agency Shares | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Schedule of Investments19
Schedule of Investments (continued)October 31, 2024
BlackRock LifePath® ESG Index 2065 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.
202024 BlackRock Annual Financial Statements and Additional Information
Schedule of InvestmentsOctober 31, 2024
BlackRock LifePath® ESG Index 2070 Fund(Percentages shown are based on Net Assets)
| | | |
|
|
iShares Developed Real Estate Index Fund, Class K | | | |
iShares ESG Aware MSCI EAFE ETF | | | |
iShares ESG Aware MSCI EM ETF | | | |
iShares ESG Aware MSCI USA ETF | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | |
| | | |
iShares MSCI EAFE Small-Cap ETF | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | |
| |
Fixed-Income Funds — 1.0% |
iShares ESG Aware U.S. Aggregate Bond ETF | | | |
| | | |
|
Money Market Funds — 0.2% | |
BlackRock Cash Funds: Treasury, SL Agency Shares, 4.83%(b) | | | |
Total Investments — 100.1%
(Cost: $2,020,450) | |
Liabilities in Excess of Other Assets — (0.1)% | |
| |
| |
| Annualized 7-day yield as of period end. |
Investments in issuers considered to be affiliate(s) of the Fund during the period ended October 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Treasury, SL Agency Shares | | | | | | | | | |
iShares Developed Real Estate Index Fund, Class K | | | | | | | | | |
iShares ESG Aware MSCI EAFE ETF | | | | | | | | | |
iShares ESG Aware MSCI EM ETF | | | | | | | | | |
iShares ESG Aware MSCI USA ETF | | | | | | | | | |
iShares ESG Aware MSCI USA Small-Cap ETF | | | | | | | | | |
iShares ESG Aware U.S. Aggregate Bond ETF | | | | | | | | | |
| | | | | | | | | |
iShares MSCI EAFE Small-Cap ETF | | | | | | | | | |
iShares MSCI Emerging Markets Small-Cap ETF | | | | | | | | | |
| | | | | | | | | |
| Commencement of operations. |
| Represents net amount purchased (sold). |
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.
Schedule of Investments21
Statements of Assets and LiabilitiesOctober 31, 2024
| BlackRock
LifePath® ESG
Index Retirement Fund | BlackRock
LifePath® ESG
Index 2030 Fund | BlackRock
LifePath® ESG
Index 2035 Fund | BlackRock
LifePath® ESG
Index 2040 Fund |
| | | | |
Investments, at value — affiliated(a)(b) | | | | |
| | | | |
| | | | |
Securities lending income — affiliated | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Collateral on securities loaned | | | | |
| | | | |
| | | | |
Trustees’ and Officer’s fees | | | | |
| | | | |
| | | | |
| | | | |
Commitments and contingent liabilities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
(a) Investments, at cost—affiliated | | | | |
(b) Securities loaned, at value | | | | |
See notes to financial statements.
222024 BlackRock Annual Financial Statements and Additional Information
Statements of Assets and Liabilities (continued)October 31, 2024
| BlackRock
LifePath® ESG
Index 2045 Fund | BlackRock
LifePath® ESG
Index 2050 Fund | BlackRock
LifePath® ESG
Index 2055 Fund | BlackRock
LifePath® ESG
Index 2060 Fund |
| | | | |
Investments, at value — affiliated(a)(b) | | | | |
| | | | |
| | | | |
Securities lending income — affiliated | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Collateral on securities loaned | | | | |
| | | | |
| | | | |
| | | | |
Trustees’ and Officer’s fees | | | | |
| | | | |
| | | | |
| | | | |
Commitments and contingent liabilities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
(a) Investments, at cost—affiliated | | | | |
(b) Securities loaned, at value | | | | |
See notes to financial statements.
Statements of Assets and Liabilities23
Statements of Assets and Liabilities (continued)October 31, 2024
| BlackRock
LifePath® ESG
Index 2065 Fund | BlackRock
LifePath® ESG
Index 2070 Fund |
| | |
Investments, at value — affiliated(a)(b) | | |
| | |
| | |
Securities lending income — affiliated | | |
| | |
| | |
| | |
| | |
| | |
| | |
Collateral on securities loaned | | |
| | |
| | |
Trustees’ and Officer’s fees | | |
| | |
| | |
| | |
Commitments and contingent liabilities | | |
| | |
| | |
| | |
Accumulated earnings (loss) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
(a) Investments, at cost—affiliated | | |
(b) Securities loaned, at value | | |
See notes to financial statements.
242024 BlackRock Annual Financial Statements and Additional Information
Statements of OperationsYear Ended October 31, 2024
| BlackRock
LifePath® ESG
Index Retirement Fund | BlackRock
LifePath® ESG
Index 2030 Fund | BlackRock
LifePath® ESG
Index 2035 Fund | BlackRock
LifePath® ESG
Index 2040 Fund |
| | | | |
| | | | |
Securities lending income — affiliated — net | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Administration — class specific | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Fees waived and/or reimbursed by the Administrator/Manager | | | | |
Total expenses after fees waived and/or reimbursed | | | | |
| | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | |
Net realized gain (loss) from: | | | | |
| | | | |
Capital gain distributions from underlying funds — affiliated | | | | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
| | | | |
| | | | |
Net realized and unrealized gain | | | | |
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | | | |
See notes to financial statements.
Statements of Operations25
Statements of Operations (continued)Year Ended October 31, 2024
| BlackRock
LifePath® ESG
Index 2045 Fund | BlackRock
LifePath® ESG
Index 2050 Fund | BlackRock
LifePath® ESG
Index 2055 Fund | BlackRock
LifePath® ESG
Index 2060 Fund |
| | | | |
| | | | |
Securities lending income — affiliated — net | | | | |
| | | | |
| | | | |
| | | | |
Administration — class specific | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Fees waived and/or reimbursed by the Administrator/Manager | | | | |
Total expenses after fees waived and/or reimbursed | | | | |
| | | | |
REALIZED AND UNREALIZED GAIN (LOSS) | | | | |
| | | | |
| | | | |
Capital gain distributions from underlying funds — affiliated | | | | |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
| | | | |
| | | | |
Net realized and unrealized gain | | | | |
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | | | |
See notes to financial statements.
262024 BlackRock Annual Financial Statements and Additional Information
Statements of Operations (continued)Year Ended October 31, 2024
| BlackRock
LifePath® ESG
Index 2065 Fund | |
| | |
| | |
Securities lending income — affiliated — net | | |
| | |
| | |
| | |
| | |
Administration — class specific | | |
| | |
| | |
| | |
| | |
| | |
Fees waived and/or reimbursed by the Administrator/Manager | | |
Total expenses after fees waived and/or reimbursed | | |
| | |
REALIZED AND UNREALIZED GAIN (LOSS) | | |
Net realized gain (loss) from: | | |
| | |
Capital gain distributions from underlying funds — affiliated | | |
| | |
Net change in unrealized appreciation (depreciation) on: | | |
| | |
| | |
Net realized and unrealized gain (loss) | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | | |
(a) For the period from September 24, 2024 (commencement of operations) to October 31, 2024. |
See notes to financial statements.
Statements of Operations27
Statements of Changes in Net Assets
| BlackRock
LifePath® ESG
Index Retirement Fund | BlackRock
LifePath® ESG
Index 2030 Fund |
| | | | |
|
INCREASE (DECREASE) IN NET ASSETS | | | | |
| | | | |
| | | | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | | |
Net increase in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS(a) | | | | |
| | | | |
| | | | |
| | | | |
Decrease in net assets resulting from distributions to shareholders | | | | |
CAPITAL SHARE TRANSACTIONS | | | | |
Net increase (decrease) in net assets derived from capital share transactions | | | | |
| | | | |
Total increase in net assets | | | | |
| | | | |
| | | | |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
282024 BlackRock Annual Financial Statements and Additional Information
Statements of Changes in Net Assets (continued)
| BlackRock
LifePath® ESG
Index 2035 Fund | BlackRock
LifePath® ESG
Index 2040 Fund |
| | | | |
|
INCREASE (DECREASE) IN NET ASSETS | | | | |
| | | | |
| | | | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | | |
Net increase in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS(a) | | | | |
| | | | |
| | | | |
| | | | |
Decrease in net assets resulting from distributions to shareholders | | | | |
CAPITAL SHARE TRANSACTIONS | | | | |
Net increase in net assets derived from capital share transactions | | | | |
| | | | |
Total increase in net assets | | | | |
| | | | |
| | | | |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
Statements of Changes in Net Assets29
Statements of Changes in Net Assets (continued)
| BlackRock
LifePath® ESG
Index 2045 Fund | BlackRock
LifePath® ESG
Index 2050 Fund |
| | | | |
|
INCREASE (DECREASE) IN NET ASSETS | | | | |
| | | | |
| | | | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | | |
Net increase in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS(a) | | | | |
| | | | |
| | | | |
| | | | |
Decrease in net assets resulting from distributions to shareholders | | | | |
CAPITAL SHARE TRANSACTIONS | | | | |
Net increase in net assets derived from capital share transactions | | | | |
| | | | |
Total increase in net assets | | | | |
| | | | |
| | | | |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
302024 BlackRock Annual Financial Statements and Additional Information
Statements of Changes in Net Assets (continued)
| BlackRock
LifePath® ESG
Index 2055 Fund | BlackRock
LifePath® ESG
Index 2060 Fund |
| | | | |
|
INCREASE (DECREASE) IN NET ASSETS | | | | |
| | | | |
| | | | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | | |
Net increase in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS(a) | | | | |
| | | | |
| | | | |
| | | | |
Decrease in net assets resulting from distributions to shareholders | | | | |
CAPITAL SHARE TRANSACTIONS | | | | |
Net increase in net assets derived from capital share transactions | | | | |
| | | | |
Total increase in net assets | | | | |
| | | | |
| | | | |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
Statements of Changes in Net Assets31
Statements of Changes in Net Assets (continued)
| BlackRock
LifePath® ESG
Index 2065 Fund | BlackRock
LifePath® ESG
Index 2070 Fund
Period from
to 10/31/24 |
| | |
|
INCREASE (DECREASE) IN NET ASSETS | | | |
| | | |
| | | |
| | | |
Net change in unrealized appreciation (depreciation) | | | |
Net increase (decrease) in net assets resulting from operations | | | |
DISTRIBUTIONS TO SHAREHOLDERS(b) | | | |
| | | |
| | | |
| | | |
Decrease in net assets resulting from distributions to shareholders | | | |
CAPITAL SHARE TRANSACTIONS | | | |
Net increase in net assets derived from capital share transactions | | | |
| | | |
Total increase in net assets | | | |
| | | |
| | | |
| Commencement of operations. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
322024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index Retirement Fund |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| Includes non-recurring expenses of reorganization costs. Without these costs, total expenses would have been 0.86% respectively. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.66%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index Retirement Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| Includes non-recurring expenses of reorganization costs. Without these costs, total expenses would have been 1.03% respectively. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.91%. |
See notes to financial statements.
342024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index Retirement Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| Includes non-recurring expenses of reorganization costs. Without these costs, total expenses would have been 0.81% respectively. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.61%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2030 Fund |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.66%. |
See notes to financial statements.
362024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2030 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.91%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2030 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.61%. |
See notes to financial statements.
382024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2035 Fund |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.66%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2035 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.91%. |
See notes to financial statements.
402024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2035 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.61%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2040 Fund |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.66%. |
See notes to financial statements.
422024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2040 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.93%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2040 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.61%. |
See notes to financial statements.
442024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2045 Fund |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.66%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2045 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.91%. |
See notes to financial statements.
462024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2045 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.61%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2050 Fund |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.66%. |
See notes to financial statements.
482024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2050 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.91%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2050 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.61%. |
See notes to financial statements.
502024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2055 Fund |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.66%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2055 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.91%. |
See notes to financial statements.
522024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2055 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(g) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.61%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2060 Fund |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.66%. |
See notes to financial statements.
542024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2060 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.91%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2060 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.61%. |
See notes to financial statements.
562024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2065 Fund |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.66%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2065 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.91%. |
See notes to financial statements.
582024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2065 Fund (continued) |
| |
| | | | | |
|
Net asset value, beginning of period | | | | | |
| | | | | |
Net realized and unrealized gain (loss) | | | | | |
Net increase (decrease) from investment operations | | | | | |
| | | | | |
From net investment income | | | | | |
| | | | | |
| | | | | |
Net asset value, end of period | | | | | |
| | | | | |
| | | | | |
Ratios to Average Net Assets(f) | | | | | |
| | | | | |
Total expenses after fees waived and/or reimbursed | | | | | |
| | | | | |
| | | | | |
Net assets, end of period (000) | | | | | |
| | | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.61%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2070 Fund |
| |
| |
| |
Net asset value, beginning of period | |
| |
Net realized and unrealized loss | |
Net decrease from investment operations | |
Net asset value, end of period | |
| |
| |
Ratios to Average Net Assets(e) | |
| |
Total expenses after fees waived and/or reimbursed | |
| |
| |
Net assets, end of period (000) | |
| |
| Commencement of operations. |
| Based on average shares outstanding. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses and total expenses after fees waived and/or reimbursed would have been 7.65%. |
See notes to financial statements.
602024 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2070 Fund (continued) |
| |
| |
| |
Net asset value, beginning of period | |
| |
Net realized and unrealized loss | |
Net decrease from investment operations | |
Net asset value, end of period | |
| |
| |
Ratios to Average Net Assets(e) | |
| |
Total expenses after fees waived and/or reimbursed | |
| |
| |
Net assets, end of period (000) | |
| |
| Commencement of operations. |
| Based on average shares outstanding. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses and total expenses after fees waived and/or reimbursed would have been 7.90%. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock LifePath® ESG Index 2070 Fund (continued) |
| |
| |
| |
Net asset value, beginning of period | |
| |
Net realized and unrealized loss | |
Net decrease from investment operations | |
Net asset value, end of period | |
| |
| |
Ratios to Average Net Assets(e) | |
| |
Total expenses after fees waived and/or reimbursed | |
| |
| |
Net assets, end of period (000) | |
| |
| Commencement of operations. |
| Based on average shares outstanding. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses and total expenses after fees waived and/or reimbursed would have been 7.60%. |
See notes to financial statements.
622024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements
BlackRock Funds III (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 Delaware statutory trust. The following, each of which is a series of the Trust, are referred to herein collectively as the “Funds” or individually as a “Fund”:
| | Diversification
Classification |
BlackRock LifePath® ESG Index Retirement Fund | LifePath ESG Index Retirement Fund | |
BlackRock LifePath® ESG Index 2030 Fund | LifePath ESG Index 2030 Fund | |
BlackRock LifePath® ESG Index 2035 Fund | LifePath ESG Index 2035 Fund | |
BlackRock LifePath® ESG Index 2040 Fund | LifePath ESG Index 2040 Fund | |
BlackRock LifePath® ESG Index 2045 Fund | LifePath ESG Index 2045 Fund | |
BlackRock LifePath® ESG Index 2050 Fund | LifePath ESG Index 2050 Fund | |
BlackRock LifePath® ESG Index 2055 Fund | LifePath ESG Index 2055 Fund | |
BlackRock LifePath® ESG Index 2060 Fund | LifePath ESG Index 2060 Fund | |
BlackRock LifePath® ESG Index 2065 Fund | LifePath ESG Index 2065 Fund | |
BlackRock LifePath® ESG Index 2070 Fund | LifePath ESG Index 2070 Fund | |
The Funds will generally invest in other registered investment companies (each, an “Underlying Fund” and collectively, the “Underlying Funds”) that are managed by subsidiaries of BlackRock, Inc. (“BlackRock”) and its affiliates, which are affiliates of the Funds.
Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional and Class K Shares are sold only to certain eligible investors. Investor A Shares bear certain expenses related to shareholder servicing of such shares. Investor A Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures.
| | | |
Institutional, Investor A and Class K Shares | | | |
The Funds, together with certain other registered investment companies advised by BlackRock Fund Advisors (“BFA” or the “Manager”) or its affiliates, are included in a complex of funds referred to as the BlackRock Multi-Asset Complex.
Reorganization: The Board of LifePath ESG Index Retirement Fund (the “Acquiring Fund”) and the Board of BlackRock LifePath ESG Index 2025 Fund (the “Target Fund”) approved the reorganization of the Target Fund into the Acquiring Fund. As a result, the Acquiring Fund acquired substantially all of the assets and assumed substantially all of the liabilities of the Target Fund in exchange for an equal aggregate value of newly-issued shares of the Acquiring Fund.
Each shareholder of the Target Fund received shares of the Acquiring Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s Target Fund shares, as determined at the close of business on October 4, 2024, less the costs of the Target Fund’s reorganization.
The reorganization was accomplished by a tax-free exchange of shares of the Acquiring Fund in the following amounts and at the following conversion ratios:
Target Fund’s Share Class | | Shares Prior to
Reorganization | | Acquiring Fund’s
Share
Class | Shares of
the Acquiring Fund |
| | | | | |
| | | | | |
| | | | | |
The Target Fund’s net assets and composition of net assets on October 4, 2024, the valuation date of the reorganization, were as follows:
For financial reporting purposes, assets received and shares issued by the Acquiring Fund were recorded at fair value. However, the cost basis of the investments received from the Target Fund was carried forward to align ongoing reporting of the Acquiring Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
The net assets of the Acquiring Fund before the reorganization were $3,960,440. The aggregate net assets of the Acquiring Fund immediately after the reorganization amounted to $7,639,704. The Target Fund’s fair value and cost of financial instruments prior to the reorganization were as follows:
| | |
LifePath ESG Index 2025 Fund | | |
Notes to Financial Statements63
Notes to Financial Statements (continued)
The purpose of these transactions was to combine two funds managed by the Manager with substantially similar (but not identical) investment objectives, investment policies, strategies, risks and restrictions. The reorganization was a tax-free event and was effective on October 7, 2024.
Assuming the reorganization had been completed on November 1, 2023, the beginning of the fiscal reporting period of the Acquiring Fund, the pro forma results of operations for the year ended October 31, 2024, were as follows:
• Net investment income (loss): $ 231,172
• Net realized and change in unrealized gain/loss on investments: $ 919,138
• Net increase/decrease in net assets resulting from operations: $ 1,150,310
Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Fund that have been included in the Acquiring Fund’s Statements of Operations since October 7, 2024.
Reorganization costs incurred by LifePath ESG Index Retirement Fund in connection with the reorganization were expensed by LifePath ESG Index Retirement Fund. The Manager reimbursed the Fund $150,000, which is included in fees waived and/or reimbursed by the Administrator/Manager in the Statements of Operations.
2.
SIGNIFICANT ACCOUNTING POLICIES
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. 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. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.
Bank Overdraft: The Funds had outstanding cash disbursements exceeding deposited cash amounts at the custodian during the reporting period. The Funds are obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statements of Operations.
Distributions: Distributions paid by the Funds are recorded on the ex-dividend dates. Distributions of capital gains are recorded on the ex-dividend dates and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.
Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on their relative net assets or other appropriate methods. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.
3.
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of each Fund (the “Board”) has approved the designation of each Fund’s Manager as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
•Exchange-traded funds (“ETFs”) and closed-end funds 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. ETFs and closed-end funds 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 NAV.
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
642024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement 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 each 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.
SECURITIES AND OTHER INVESTMENTS
Securities Lending: Certain Funds may lend their securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Funds collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Funds are entitled to all distributions made on or in respect of the loaned securities, but do not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Institutional Trust Company, N.A. (“BTC”), if any, is disclosed in the Schedules of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Funds’ Schedules of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Statements of Assets and Liabilities as a component of investments at value – affiliated and collateral on securities loaned, respectively.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the Funds’ securities on loan by counterparty which are subject to offset under an MSLA:
| Securities
Loaned at Value | | Non-Cash Collateral
Received, at Fair Value(a) | |
LifePath ESG Index Retirement Fund | | | | |
| | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
| | | | |
Wells Fargo Securities LLC | | | | |
| | | | |
Notes to Financial Statements65
Notes to Financial Statements (continued)
| Securities Loaned at Value | Cash Collateral Received(a) | Non-Cash Collateral Received, at Fair Value(a) | |
LifePath ESG Index 2030 Fund | | | | |
| | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
| | | | |
| | | | |
Wells Fargo Securities LLC | | | | |
| | | | |
LifePath ESG Index 2035 Fund | | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
| | | | |
LifePath ESG Index 2040 Fund | | | | |
| | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
| | | | |
LifePath ESG Index 2045 Fund | | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
| | | | |
| | | | |
LifePath ESG Index 2050 Fund | | | | |
| | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
LifePath ESG Index 2055 Fund | | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
| | | | |
Wells Fargo Securities LLC | | | | |
| | | | |
LifePath ESG Index 2060 Fund | | | | |
| | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
Wells Fargo Securities LLC | | | | |
| | | | |
LifePath ESG Index 2065 Fund | | | | |
J.P. Morgan Securities LLC | | | | |
| | | | |
| | | | |
| Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Fund’s Statements of Assets and Liabilities. |
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BlackRock Finance, Inc. BlackRock Finance, Inc.’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.
5.
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory: The Trust, on behalf of each Fund, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.
For such services, each Fund pays the Manager a monthly fee at an annual rate equal to 0.05% of the average daily value of each Fund’s net assets.
662024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
Service Fees: The Trust, on behalf of each Fund, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets of each Fund’s Investor A Shares.
BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder servicing to the Funds. The ongoing service fee compensates BRIL and each broker-dealer for providing shareholder servicing related services to shareholders.
For the year ended October 31, 2024, the following table shows the class specific service fees borne directly by each share class of each Fund:
| |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2060 Fund | |
LifePath ESG Index 2065 Fund | |
LifePath ESG Index 2070 Fund | |
Administration: The Trust, on behalf of each Fund, entered into an Administration Agreement with BlackRock Advisors, LLC (“BAL” or the “Administrator”), an indirect, wholly-owned subsidiary of BlackRock, which has agreed to provide general administrative services (other than investment advice and related portfolio activities). BAL has agreed to bear all of the Funds’ ordinary operating expenses, excluding, generally, investment advisory fees, distribution fees, brokerage and other expenses related to the execution of portfolio transactions, extraordinary expenses and certain other expenses which are borne by the Funds. BAL is entitled to receive for these administrative services an annual fee of 0.20% based on the average daily net assets of each Fund’s Institutional and Investor A Shares and 0.15% of the average daily net assets of each Fund’s Class K Shares.
From time to time, BAL may waive such fees in whole or in part. Any such waiver will reduce the expenses of the Funds and, accordingly, have a favorable impact on their performance. BAL may delegate certain of its administration duties to sub-administrators.
For the year ended October 31, 2024, the following table shows the class specific administration fees borne directly by each share class of each Fund:
| | | | |
LifePath ESG Index Retirement Fund | | | | |
LifePath ESG Index 2030 Fund | | | | |
LifePath ESG Index 2035 Fund | | | | |
LifePath ESG Index 2040 Fund | | | | |
LifePath ESG Index 2045 Fund | | | | |
LifePath ESG Index 2050 Fund | | | | |
LifePath ESG Index 2055 Fund | | | | |
LifePath ESG Index 2060 Fund | | | | |
LifePath ESG Index 2065 Fund | | | | |
LifePath ESG Index 2070 Fund | | | | |
Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended October 31, 2024, the Funds did not pay any amounts to affiliates in return for these services.
Expense Waivers and Reimbursements: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2025. The contractual agreement may be terminated upon 90 days’ notice by a majority of the 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 a Fund. These amounts are included in fees waived and/or reimbursed by the Administrator/Manager in the Statements of Operations. For the year ended October 31, 2024, the amounts waived were as follows:
| Fees Waived and/or Reimbursed
by the Administrator/Manager |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2060 Fund | |
Notes to Financial Statements67
Notes to Financial Statements (continued)
| Fees Waived and/or Reimbursed by the Administrator/Manager |
LifePath ESG Index 2065 Fund | |
LifePath ESG Index 2070 Fund | |
The Manager and the Administrator have contractually agreed to reimburse each Fund for acquired fund fees and expenses up to a maximum amount equal to the combined investment advisory fee and administration fee of each share class through June 30, 2025. These amounts are included in fees waived and/or reimbursed by the Administrator/Manager in the Statements of Operations. For the year ended October 31, 2024, the amounts waived were as follows:
| Fees Waived and/or Reimbursed
by the Administrator/Manager |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2060 Fund | |
LifePath ESG Index 2065 Fund | |
LifePath ESG Index 2070 Fund | |
The fees and expenses of the Funds’ Independent Trustees, counsel to the Independent Trustees and the Funds’ independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Funds. Each of BAL and BFA have contractually agreed to reimburse the Funds or provide an offsetting credit for such Independent Expenses through June 30, 2034. These amounts are included in fees waived and/or reimbursed by the Administrator/Manager in the Statements of Operations. For the year ended October 31, 2024, the Funds waived the following amounts:
| Fees Waived and/or Reimbursed
by the Administrator/Manager |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2060 Fund | |
LifePath ESG Index 2065 Fund | |
LifePath ESG Index 2070 Fund | |
Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BTC, an affiliate of the Manager, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. The Funds are responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by the Manager or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Funds bear to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. BlackRock Cash Funds: Institutional may impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money market fund. Additionally, BlackRock Cash Funds: Institutional will impose a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the amount of the fee is less than 0.01% of the value of the shares redeemed. BlackRock Cash Funds: Institutional will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If BlackRock Cash Funds: Institutional cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.
Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. Each Fund retains a portion of the securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an
682024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
amount equal to 85% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in the Statements of Operations. For the year ended October 31, 2024, each Fund paid BTC the following amounts for securities lending agent services:
| |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2060 Fund | |
LifePath ESG Index 2065 Fund | |
Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow and lend under the Interfund Lending Program.
A lending BlackRock fund may lend in aggregate up to 15% of its net assets but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency 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 Funds 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.
Other Transactions: Each Fund may invest its positive cash balances in certain money market funds managed by the Manager or an affiliate. The income earned on these temporary cash investments is shown as income-affiliated in the Statements of Operations.
For the year ended October 31, 2024, purchases and sales of investments in the Underlying Funds, excluding short-term securities, were as follows:
| | |
LifePath ESG Index Retirement Fund | | |
LifePath ESG Index 2030 Fund | | |
LifePath ESG Index 2035 Fund | | |
LifePath ESG Index 2040 Fund | | |
LifePath ESG Index 2045 Fund | | |
LifePath ESG Index 2050 Fund | | |
LifePath ESG Index 2055 Fund | | |
LifePath ESG Index 2060 Fund | | |
LifePath ESG Index 2065 Fund | | |
LifePath ESG Index 2070 Fund | | |
It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.
Management has analyzed tax laws and regulations and their application to the Funds as of 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 Funds’ 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 Funds’ NAV.
Notes to Financial Statements69
Notes to Financial Statements (continued)
The tax character of distributions paid was as follows:
| | |
LifePath ESG Index Retirement Fund | | |
| | |
LifePath ESG Index 2030 Fund | | |
| | |
LifePath ESG Index 2035 Fund | | |
| | |
| | |
| | |
LifePath ESG Index 2040 Fund | | |
| | |
LifePath ESG Index 2045 Fund | | |
| | |
LifePath ESG Index 2050 Fund | | |
| | |
LifePath ESG Index 2055 Fund | | |
| | |
| | |
| | |
LifePath ESG Index 2060 Fund | | |
| | |
LifePath ESG Index 2065 Fund | | |
| | |
| | |
| | |
As of October 31, 2024, the tax components of accumulated earnings (loss) were as follows:
| Undistributed
Ordinary Income | Undistributed
Long-Term
Capital Gains | | |
LifePath ESG Index Retirement Fund | | | | |
LifePath ESG Index 2030 Fund | | | | |
LifePath ESG Index 2035 Fund | | | | |
LifePath ESG Index 2040 Fund | | | | |
LifePath ESG Index 2045 Fund | | | | |
LifePath ESG Index 2050 Fund | | | | |
LifePath ESG Index 2055 Fund | | | | |
LifePath ESG Index 2060 Fund | | | | |
LifePath ESG Index 2065 Fund | | | | |
LifePath ESG Index 2070 Fund | | | | |
| The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales. |
During the year ended October 31, 2024, the Funds listed below utilized the following amounts of their respective capital loss carryforward:
| |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2060 Fund | |
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:
| | Gross Unrealized
Appreciation | Gross Unrealized
Depreciation | Net Unrealized
Appreciation
(Depreciation) |
LifePath ESG Index Retirement Fund | | | | |
702024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
| | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) |
LifePath ESG Index 2030 Fund | | | | |
LifePath ESG Index 2035 Fund | | | | |
LifePath ESG Index 2040 Fund | | | | |
LifePath ESG Index 2045 Fund | | | | |
LifePath ESG Index 2050 Fund | | | | |
LifePath ESG Index 2055 Fund | | | | |
LifePath ESG Index 2060 Fund | | | | |
LifePath ESG Index 2065 Fund | | | | |
LifePath ESG Index 2070 Fund | | | | |
The Trust, on behalf of each 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 Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple 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 Funds did not borrow under the credit agreement.
In the normal course of business, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which each Fund is subject.
The Manager uses an indexing approach to try to achieve each Fund’s investment objective. The Funds are not actively managed, and the Manager generally does not attempt to take defensive positions under any market conditions, including declining markets.
The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to mandatory and discretionary liquidity fees under certain circumstances.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.
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.
Notes to Financial Statements71
Notes to Financial Statements (continued)
10.
CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for each class were as follows:
| | |
| | | | |
LifePath ESG Index Retirement Fund | | | | |
| | | | |
Shares issued in reorganization | | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
Shares issued in reorganization | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
Shares issued in reorganization | | | | |
| | | | |
| | | | |
| | | | |
| | |
| | | | |
LifePath ESG Index 2030 Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | |
| | | | |
LifePath ESG Index 2035 Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
722024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
| | |
Fund Name / Share Class (continued) | | | | |
LifePath ESG Index 2035 Fund (continued) | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | |
| | | | |
LifePath ESG Index 2040 Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | |
| | | | |
LifePath ESG Index 2045 Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
Notes to Financial Statements73
Notes to Financial Statements (continued)
| | |
| | | | |
LifePath ESG Index 2050 Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | |
| | | | |
LifePath ESG Index 2055 Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | |
| | | | |
LifePath ESG Index 2060 Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
742024 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements (continued)
| | |
Fund Name / Share Class (continued) | | | | |
LifePath ESG Index 2060 Fund (continued) | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | |
| | | | |
LifePath ESG Index 2065 Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| |
| | |
LifePath ESG Index 2070 Fund | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Commencement of operations. |
As of October 31, 2024, shares owned by BlackRock Financial Management, Inc., an affiliate of the Funds, were as follows:
| | | |
LifePath ESG Index Retirement Fund | | | |
LifePath ESG Index 2030 Fund | | | |
LifePath ESG Index 2035 Fund | | | |
LifePath ESG Index 2040 Fund | | | |
Notes to Financial Statements75
Notes to Financial Statements (continued)
| | | |
LifePath ESG Index 2045 Fund | | | |
LifePath ESG Index 2050 Fund | | | |
LifePath ESG Index 2055 Fund | | | |
LifePath ESG Index 2060 Fund | | | |
LifePath ESG Index 2065 Fund | | | |
LifePath ESG Index 2070 Fund | | | |
Management has evaluated the impact of all subsequent events on the Funds 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.
762024 BlackRock Annual Financial Statements and Additional Information
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of BlackRock Funds III and Shareholders of each of the ten funds listed in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of each of the funds listed in the table below (ten of the funds constituting BlackRock Funds III, hereafter collectively referred to as the “Funds”) as of October 31, 2024, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds listed in the table below as of October 31, 2024, the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
BlackRock LifePath® ESG Index Retirement Fund(1) |
BlackRock LifePath® ESG Index 2030 Fund(1) |
BlackRock LifePath® ESG Index 2035 Fund(1) |
BlackRock LifePath® ESG Index 2040 Fund(1) |
BlackRock LifePath® ESG Index 2045 Fund(1) |
BlackRock LifePath® ESG Index 2050 Fund(1) |
BlackRock LifePath® ESG Index 2055 Fund(1) |
BlackRock LifePath® ESG Index 2060 Fund(1) |
BlackRock LifePath® ESG Index 2065 Fund(1) |
BlackRock LifePath® ESG Index 2070 Fund(2) |
(1) Statement of operations for the year ended October 31, 2024 and statement of changes in net assets for each of the two years in the period ended October 31, 2024
(2) Statement of operations and statement of changes in net assets for the period September 24, 2024 (commencement of operations) through October 31, 2024
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements 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 Funds 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 of these financial statements 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 are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, 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. 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. Our procedures included confirmation of securities owned as of October 31, 2024 by correspondence with the custodian, transfer agents and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
December 20, 2024
We have served as the auditor of one or more BlackRock investment companies since 2000.
Report of Independent Registered Public Accounting Firm77
Important Tax Information (unaudited)
The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended October 31, 2024:
| |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2025 Fund(a) | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2060 Fund | |
LifePath ESG Index 2065 Fund | |
LifePath ESG Index 2070 Fund | |
| Effective October 7, 2024, LifePath ESG Index 2025 Fund reorganized into LifePath ESG Index Retirement Fund. |
The Funds hereby designate the following amounts, or maximum amounts allowable by law, as capital gain dividends, subject to a long-term capital gains tax rate as noted below, for the fiscal year ended October 31, 2024:
| 20% Rate Long-Term
Capital Gain Dividends |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2065 Fund | |
The Funds intend to pass through to their shareholders the following amounts, or maximum amounts allowable by law, of foreign source income earned and foreign taxes paid for the fiscal year ended October 31, 2024:
| Foreign Source
Income Earned | |
LifePath ESG Index Retirement Fund | | |
LifePath ESG Index 2025 Fund(a) | | |
LifePath ESG Index 2030 Fund | | |
LifePath ESG Index 2035 Fund | | |
LifePath ESG Index 2040 Fund | | |
LifePath ESG Index 2045 Fund | | |
LifePath ESG Index 2050 Fund | | |
LifePath ESG Index 2055 Fund | | |
LifePath ESG Index 2060 Fund | | |
LifePath ESG Index 2065 Fund | | |
| Effective October 7, 2024, LifePath ESG Index 2025 Fund reorganized into LifePath ESG Index Retirement Fund. |
The Funds hereby designate the following amounts, or maximum amounts allowable by law, of distributions from direct federal obligation interest for the fiscal year ended October 31, 2024:
| Federal Obligation
Interest |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2025 Fund(a) | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2060 Fund | |
LifePath ESG Index 2065 Fund | |
LifePath ESG Index 2070 Fund | |
| Effective October 7, 2024, LifePath ESG Index 2025 Fund reorganized into LifePath ESG Index Retirement Fund. |
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.
782024 BlackRock Annual Financial Statements and Additional Information
Important Tax Information (unaudited) (continued)
The following percentages, or maximum percentages allowable by law, of ordinary income distributions paid during the fiscal year ended October 31, 2024 qualified for the dividends-received deduction for corporate shareholders:
| Dividends-Received
Deduction |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2025 Fund(a) | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2060 Fund | |
LifePath ESG Index 2065 Fund | |
LifePath ESG Index 2070 Fund | |
| Effective October 7, 2024, LifePath ESG Index 2025 Fund reorganized into LifePath ESG Index Retirement Fund. |
The Funds hereby designate the following amounts, or maximum amounts 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:
| |
LifePath ESG Index Retirement Fund | |
LifePath ESG Index 2025 Fund(a) | |
LifePath ESG Index 2030 Fund | |
LifePath ESG Index 2035 Fund | |
LifePath ESG Index 2040 Fund | |
LifePath ESG Index 2045 Fund | |
LifePath ESG Index 2050 Fund | |
LifePath ESG Index 2055 Fund | |
LifePath ESG Index 2060 Fund | |
LifePath ESG Index 2065 Fund | |
LifePath ESG Index 2070 Fund | |
| Effective October 7, 2024, LifePath ESG Index 2025 Fund reorganized into LifePath ESG Index Retirement Fund. |
The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest-related dividends and qualified short-term capital gains eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended October 31, 2024:
| Interest-
Related
Dividends | Qualified
Short-Term
Capital Gains |
LifePath ESG Index Retirement Fund | | |
LifePath ESG Index 2025 Fund(a) | | |
LifePath ESG Index 2030 Fund | | |
LifePath ESG Index 2035 Fund | | |
LifePath ESG Index 2040 Fund | | |
LifePath ESG Index 2045 Fund | | |
LifePath ESG Index 2050 Fund | | |
LifePath ESG Index 2055 Fund | | |
LifePath ESG Index 2060 Fund | | |
LifePath ESG Index 2065 Fund | | |
LifePath ESG Index 2070 Fund | | |
| Effective October 7, 2024, LifePath ESG Index 2025 Fund reorganized into LifePath ESG Index Retirement Fund. |
Important Tax Information79
Changes in and Disagreements with Accountants
Remuneration Paid to Trustees, Officers, and Others
Each of BAL and BFA has contractually agreed to reimburse, or provide offsetting credits to, the Funds for the Funds’ allocable portion of the fees and expenses of the independent trustees of the Trust, counsel to such independent trustees and the independent registered public accounting firm.
Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.
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.
Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.
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.
Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
802024 BlackRock Annual Financial Statements and Additional Information
Additional Information (continued)
Fund and Service Providers
Investment Adviser
BlackRock Fund Advisors
San Francisco, CA 94105
BlackRock Advisors, LLC
Wilmington, DE 19809
Accounting Agent and Custodian
State Street Bank and Trust Company
Boston, MA 02114
BNY Mellon Investment Servicing (US) Inc.
Wilmington, DE 19809
Distributor
BlackRock Investments, LLC
New York, NY 10001
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
Philadelphia, PA 19103
Sidley Austin LLP
New York, NY 10019
400 Howard Street
San Francisco, CA 94105
Disclosure of Investment Advisory Agreement
The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Funds III (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 LifePath ESG Index Retirement Fund (“LifePath ESG Index Retirement Fund”), BlackRock LifePath ESG Index 2030 Fund (“LifePath ESG Index 2030 Fund”), BlackRock LifePath ESG Index 2035 Fund (“LifePath ESG Index 2035 Fund”), BlackRock LifePath ESG Index 2040 Fund (“LifePath ESG Index 2040 Fund”), BlackRock LifePath ESG Index 2045 Fund (“LifePath ESG Index 2045 Fund”), BlackRock LifePath ESG Index 2050 Fund (“LifePath ESG Index 2050 Fund”), BlackRock LifePath ESG Index 2055 Fund (“LifePath ESG Index 2055 Fund”), BlackRock LifePath ESG Index 2060 Fund (“LifePath ESG Index 2060 Fund”) and BlackRock LifePath ESG Index 2065 Fund (“LifePath ESG Index 2065 Fund”) (each, a “Fund” and collectively, the “Funds”), each a series of the Trust, and BlackRock Fund Advisors (the “Manager” or “BlackRock”), each Fund’s investment advisor.
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 each 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 each 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 each 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 each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each 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 Funds; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and the Funds’ 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 each 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 Funds; (d) each 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 Funds; and (g) other factors deemed relevant by the Board Members.
822024 BlackRock Annual Financial Statements and Additional Information
Disclosure of Investment Advisory Agreement (continued)
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.
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 each Fund. Throughout the year, the Board compared each Fund’s 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 each 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 each 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 each 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 each Fund. BlackRock and its affiliates provide the Funds with certain administrative, shareholder and other services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide the Funds 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, each 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 Funds, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing each 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 Funds
The Board, including the Independent Board Members, reviewed and considered the performance history of each 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 each 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, with respect to each Fund, 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 each 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 each of the one-year, three-year and since-inception periods reported, each of LifePath ESG Index 2050 Fund, LifePath ESG Index 2055 Fund, LifePath ESG Index 2060 Fund and LifePath ESG Index 2065 Fund ranked in the first quartile against its Morningstar Category.
The Board noted that for the one-year, three-year and since-inception periods reported, LifePath ESG Index Retirement Fund ranked in the first, second and second quartiles, respectively, against its Morningstar Category.
The Board noted that for the one-year, three-year and since-inception periods reported, each of LifePath ESG Index 2040 Fund and LifePath ESG Index 2045 Fund ranked in the second, first and first quartiles, respectively, against its Morningstar Category.
The Board noted that for the one-year, three-year and since-inception periods reported, LifePath ESG Index 2030 Fund ranked in the second, second and third quartiles, respectively, against its Morningstar Category. The Board and BlackRock reviewed the Fund’s underperformance relative to its Morningstar Category during the applicable period.
The Board noted that for the one-year, three-year and since-inception periods reported, LifePath ESG Index 2035 Fund ranked in the third, second and second quartiles, respectively, against its Morningstar Category. The Board and BlackRock reviewed the Fund’s underperformance relative to its Morningstar Category during the applicable period.
Disclosure of Investment Advisory Agreement83
Disclosure of Investment Advisory Agreement (continued)
The Board noted that BlackRock believes that the Morningstar Category is an appropriate performance metric for each 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 Funds
The Board, including the Independent Board Members, reviewed each 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 each 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 each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each 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 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 Funds, 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 varying fee structures for fund of funds can limit the value of management fee comparisons.
The Board also noted that each of LifePath ESG Index Retirement Fund’s, LifePath ESG Index 2030 Fund’s, LifePath ESG Index 2035 Fund’s, LifePath ESG Index 2040 Fund’s, LifePath ESG Index 2045 Fund’s, LifePath ESG Index 2050 Fund’s, LifePath ESG Index 2055 Fund’s, LifePath ESG Index 2060 Fund’s and LifePath ESG Index 2065 Fund’s contractual management fee rate ranked in the third 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.Additionally, the Board noted that BlackRock and its affiliates have contractually agreed to reimburse or otherwise compensate each Fund for certain other fees and expenses.
The Board, including the Independent Board Members, considered the extent to which economies of scale might benefit the Funds in a variety of ways as the assets of the Funds 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 Funds, 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 Funds, 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 pertinent Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.
842024 BlackRock Annual Financial Statements and Additional Information
Disclosure of Investment Advisory Agreement (continued)
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 each 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 each 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.
Disclosure of Investment Advisory Agreement85
Disclosure of Investment Advisory Agreement (continued)
The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Funds III (the “Trust”) met on May 15-17, 2024 (the “Organizational Meeting”) to consider the initial approval of the proposed investment advisory agreement (the “Agreement”) between the Trust, on behalf of BlackRock LifePath ESG Index 2070 Fund (the “Fund”), and BlackRock Fund Advisors (the “Manager” or “BlackRock”), the Fund’s investment advisor. The Agreement was the same agreement that had been previously approved by the Board with respect to certain series of the Trust.
Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Trust is required to consider the initial approval of the Agreement. The Board members whom are not “interested persons” of the Fund, as defined in the 1940 Act, are considered independent Board members (the “Independent Board Members”). In connection with this deliberative process, the Board assessed, among other things, the nature, extent and quality of the services to be 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.
At the Organizational Meeting, the Board received and reviewed materials relating to its consideration of the proposed Agreement. The Board considered all factors it believed relevant with respect to the Fund, including, among other things: (a) the nature, extent and quality of the services to be provided by BlackRock; (b) the investment performance of BlackRock portfolio management; (c) the advisory fee and the estimated cost of the services and estimated profits to be realized by BlackRock and its affiliates from their relationship with the Fund; (d) the existence and sharing of potential economies of scale; (e) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; (f) possible alternatives to the proposed Agreement; (g) the policies and practices of BlackRock with respect to portfolio transactions for the Fund; (h) BlackRock’s portfolio compliance systems and capabilities; and (i) other factors deemed relevant by the Board Members.
In considering approval of the Agreement, the Board met with the relevant investment advisory personnel from BlackRock and considered all information it deemed reasonably necessary to evaluate the terms of the Agreement. The Board received materials in advance of the Organizational Meeting relating to its consideration of the Agreement, including (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”) regarding the Fund’s fees and estimated expense ratio as compared with a peer group of funds as determined by Broadridge (“Expense Peers”); (b) information regarding BlackRock’s economic outlook for the Fund and its general investment outlook for the markets; (c) information regarding fees paid to service providers that are affiliates of BlackRock; and (d) information outlining the legal duties of the Board under the 1940 Act with respect to the consideration and approval of the Agreement. The Board also noted information received at prior Board meetings concerning compliance records and regulatory matters relating to BlackRock.
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 the portfolio holdings of the Fund. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. 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.
A. Nature, Extent and Quality of the Services to be Provided by BlackRock
The Board, including the Independent Board Members, reviewed the nature, extent and quality of services to be provided by BlackRock, including the investment advisory services to be provided to the Fund. The Board received information concerning the investment philosophy and investment process to be used by BlackRock in managing the Fund, as well as a description of the capabilities, personnel and services of BlackRock. The Board considered the scope of the services provided by BlackRock to the Fund under the Agreement relative to services typically provided by third parties to other funds. The Board noted that the standard of care applicable under the Agreement was comparable to that found generally in investment company advisory agreements. The Board concluded that the scope of BlackRock’s services to be provided to the Fund was consistent with the Fund’s operational requirements, including, in addition to seeking to meet the Fund’s investment objective(s), compliance with investment restrictions, tax and reporting requirements and related shareholder services.
The Board, including the Independent Board Members, also considered the quality of the administrative and other non-investment advisory services to be provided by BlackRock and its affiliates to the Fund. The Board evaluated the procedures of BlackRock designed to fulfill its fiduciary duty to the Fund with respect to possible conflicts of interest, including BlackRock’s code of ethics (regulating the personal trading of BlackRock’s officers and employees), the procedures by which BlackRock allocates trades among its various investment advisory clients, the integrity of the systems in place to ensure compliance with the foregoing and the record of BlackRock in these matters. The Board also noted information received at prior Board meetings concerning standards of BlackRock with respect to the execution of portfolio transactions.
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. The Board also considered the business reputation of BlackRock and its financial resources and concluded that BlackRock would be able to meet any reasonably foreseeable obligation under the Agreement.
In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services to be provided to the Fund. The Board considered that BlackRock and its affiliates will 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 will 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
862024 BlackRock Annual Financial Statements and Additional Information
Disclosure of Investment Advisory Agreement (continued)
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, previously received and considered information about BlackRock’s investment performance for other funds. The Board, however, did not consider the performance history of the Fund because the Fund was newly organized and had not yet commenced operations as of the date of the Organizational Meeting.
C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services to be Provided and Estimated Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Fund
In connection with the initial approval of the Agreement, 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 estimated total expense ratio, as well as its estimated 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 that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. Additionally, the Board noted information received at prior Board meetings concerning 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 considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and 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 varying fee structures for fund of funds can limit the value of management fee comparisons. The Board noted that the Fund’s contractual management fee rate ranked in the third quartile, and that the estimated actual management fee rate and estimated total expense ratio would each rank in the first quartile relative to the Fund’s Expense Peers. Additionally, the Board noted that BlackRock and its affiliates have contractually agreed to reimburse or otherwise compensate the Fund for certain other fees and expenses.
Following consideration of this information, the Board, including the independent Board Members, concluded that the fees to be paid pursuant to the Agreement were fair and reasonable in light of the services provided.
As the Fund had not commenced operations as of the date of the Organizational Meeting, BlackRock was not able to provide the Board with specific information concerning the expected profits to be realized by BlackRock and its affiliates from their relationships with the Fund. BlackRock, however, will provide the Board with such information at future meetings.
The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Fund increase. The Board considered multiple factors, including the advisory fee rate and breakpoint structure, fee waivers, and expense caps, as applicable.
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 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. 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 noted that it considered information regarding BlackRock’s brokerage and soft dollar practices and received and reviewed reports from BlackRock and its affiliates at prior meetings of the boards of directors/trustees of other funds in the BlackRock Multi-Asset Complex which included information on brokerage commissions and trade execution practices.
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.
Disclosure of Investment Advisory Agreement87
Disclosure of Investment Advisory Agreement (continued)
Conclusion
Following discussion, the Board, including the Independent Board Members, unanimously approved the Agreement between the Manager and the Trust, with respect to the Fund, for a two-year term beginning on the effective date of the Agreement. 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 also assisted by the advice of independent legal counsel in making this determination.
882024 BlackRock Annual Financial Statements and Additional Information
Glossary of Terms Used in this Report
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| Morgan Stanley Capital International |
Glossary of Terms Used in This Report89
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This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless preceded or accompanied by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.
| 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 date 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
4
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Funds III
| | | | |
| | By: | | /s/ John M. Perlowski |
| | | | John M. Perlowski |
| | | | Chief Executive Officer (principal executive officer) of |
| | | | BlackRock Funds III |
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 Funds III |
Date: December 20, 2024
| | | | |
| | By: | | /s/ Trent Walker |
| | | | Trent Walker |
| | | | Chief Financial Officer (principal financial officer) of |
| | | | BlackRock Funds III |
Date: December 20, 2024
5
