UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05742
Name of Fund: BlackRock Funds
SMBlackRock Liquid Environmentally Aware Fund
BlackRock Short Obligations Fund
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds
SM, 50 Hudson Yards, New York, NY 10001
Registrant’s telephone number, including area code: (800) 441-7762
Date of fiscal year end: 07/31/2024
Date of reporting period: 01/31/2024
Item 1 – Report to Stockholders
(a)
The Report to Shareholders is attached herewith.
(b)
Not Applicable
January
31,
2024
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2024
Semi-Annual
Report
(Unaudited)
BlackRock
Funds
SM
BlackRock
Liquid
Environmentally
Aware
Fund
Dear
Shareholder,
The
combination
of
continued
economic
growth
and
cooling
inflation
provided
a
supportive
backdrop
for
investors
during
the
12-month
reporting
period
ended
January
31,
2024.
Significantly
tighter
monetary
policy
helped
to
rein
in
inflation,
and
the
Consumer
Price
Index
decelerated
substantially
in
the
first
half
of
the
period
before
stalling
between
3%
and
4%
in
the
second
half.
A
moderating
labor
market
helped
ease
inflationary
pressure,
although
wages
continued
to
grow.
Wage
and
job
growth
powered
robust
consumer
spending,
backstopping
the
economy.
On
October
7,
2023,
Hamas
launched
a
horrific
attack
on
Israel.
The
ensuing
war
will
have
a
significant
humanitarian
impact
and
could
lead
to
heightened
economic
and
market
volatility.
We
see
geopolitics
as
a
structural
market
risk
going
forward.
See
our
geopolitical
risk
dashboard
at
blackrock.com
for
more
details.
Equity
returns
were
robust
during
the
period,
as
interest
rates
stabilized
and
the
economy
proved
to
be
more
resilient
than
many
investors
expected.
The
U.S.
economy
continued
to
show
strength,
and
growth
further
accelerated
in
the
second
half
of
2023.
Large-capitalization
U.S.
stocks
posted
particularly
substantial
gains,
supported
by
the
performance
of
a
few
notable
technology
companies,
while
small-capitalization
U.S.
stocks
advanced
at
a
significantly
slower
pace.
Meanwhile,
international
developed
market
equities
also
gained,
while
emerging
market
stocks
declined
overall.
The
10-year
U.S.
Treasury
yield
rose
during
the
reporting
period,
driving
its
price
down,
as
investors
reacted
to
elevated
inflation
and
attempted
to
anticipate
future
interest
rate
changes.
However,
shorter-duration
U.S.
Treasuries
gained,
as
higher
yields
boosted
returns.
The
corporate
bond
market
benefited
from
improving
economic
sentiment,
although
high-yield
corporate
bond
prices
fared
significantly
better
than
investment-grade
bonds
as
demand
from
yield-seeking
investors
remained
strong.
The
U.S.
Federal
Reserve
(the
“Fed”),
attempting
to
manage
persistent
inflation,
raised
interest
rates
four
times
during
the
12-month
period,
but
paused
its
tightening
in
the
second
half
of
the
period.
The
Fed
also
wound
down
its
bond-buying
programs
and
incrementally
reduced
its
balance
sheet
by
not
replacing
securities
that
reach
maturity.
Supply
constraints
appear
to
have
become
an
embedded
feature
of
the
new
macroeconomic
environment,
making
it
difficult
for
developed
economies
to
increase
production
without
sparking
higher
inflation.
Geopolitical
fragmentation
and
an
aging
population
risk
further
exacerbating
these
constraints,
keeping
the
labor
market
tight
and
wage
growth
high.
Although
the
Fed
has
stopped
tightening
for
now,
we
believe
that
the
new
economic
regime
means
that
the
Fed
will
need
to
maintain
high
rates
for
an
extended
period
despite
the
market’s
hopes
for
interest
rate
cuts,
as
reflected
in
the
recent
rally.
In
this
new
regime,
we
anticipate
greater
volatility
and
dispersion
of
returns,
creating
more
opportunities
for
selective
portfolio
management.
Looking
at
developed
market
stocks,
we
have
an
overweight
stance
on
U.S.
stocks
overall,
particularly
given
the
promise
of
emerging
AI
technologies.
We
are
also
overweight
Japanese
stocks
as
shareholder-friendly
policies
generate
increased
investor
interest,
although
we
maintain
an
underweight
stance
on
European
stocks.
In
credit,
there
are
selective
opportunities
in
the
near
term
despite
tighter
credit
and
financial
conditions.
For
fixed
income
investing
with
a
six-
to
twelve-month
horizon,
we
see
the
most
attractive
investments
in
short-term
U.S.
Treasuries
and
hard-currency
emerging
market
bonds.
Overall,
our
view
is
that
investors
need
to
think
globally,
position
themselves
to
be
prepared
for
a
decarbonizing
economy,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
blackrock.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
Rob
Kapito
President,
BlackRock
Advisors,
LLC
The
Markets
in
Review
Rob
Kapito
President,
BlackRock
Advisors,
LLC
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
January
31,
2024
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
6.43%
20.82%
U.S.
small
cap
equities
(Russell
2000
®
Index)
(2.02)
2.40
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
3.15
10.01
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(6.00)
(2.94)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
2.73
5.13
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
1.74
(0.38)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
3.15
2.10
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
2.70
2.90
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
6.18
9.28
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Semi-Annual
Report:
Money
Market
Overview
..................................................................................................
4
Fund
Information
.......................................................................................................
5
Disclosure
of
Expenses
...................................................................................................
5
Financial
Statements:
Schedule
of
Investments
................................................................................................
6
Statement
of
Assets
and
Liabilities
..........................................................................................
9
Statement
of
Operations
................................................................................................
11
Statements
of
Changes
in
Net
Assets
........................................................................................
12
Financial
Highlights
.....................................................................................................
13
Notes
to
Financial
Statements
...............................................................................................
21
Additional
Information
....................................................................................................
27
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
29
Money
Market
Overview
For
the
Six-Month
Period
Ended
January
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
4
During
the
period,
economic
conditions
moderated
in
the
United
States
throughout
the
second
half
of
2023.
The
unemployment
rate
ticked
up,
reaching
3.9%
in
October
2023
before
falling
to
end
the
year
at
3.7%.
After
reaching
a
recent
low
of
3.0%
in
June
2023,
headline
consumer
price
index
(“CPI”)
increased
slightly
to
3.1%
by
January
2024.
During
the
second
two
quarters
of
2023,
markets
were
highly
focused
on
absorbing
record
levels
of
supply.
Following
the
passage
of
the
U.S.
Debt
Ceiling
resolution,
over
$2.4
trillion
of
T-bill
supply
came
to
market,
with
expectations
of
additional,
robust
supply
in
Q1
2024.
After
increasing
the
range
of
the
Federal
Funds
target
rate
to
5.25%-5.50%
at
the
July
2023
Federal
Open
Market
Committee
(the
“FOMC”,
or
“Committee”)
meeting,
the
Fed
left
interest
rates
unchanged
as
inflation
showed
signs
of
moderation.
In
a
statement
released
in
conjunction
with
the
meeting,
the
Committee
reiterated
that
inflation
“remains
elevated”
while
again
acknowledging
that
it
has
“eased
over
the
past
year.”
The
statement
was
also
modified
to
recognize
the
“solid
pace”
of
economic
growth.
In
a
notable
change
in
our
view,
the
statement
was
also
updated
to
acknowledge
that
the
FOMC
“does
not
expect
it
will
be
appropriate
to
reduce
the
target
range
until
it
has
gained
greater
confidence
that
inflation
is
moving
sustainably
toward”
its
2%
target.
The
Committee
also
revised
its
outlook
for
future
interest
rate
actions,
noting
“any
adjustments”
to
the
federal
funds
target
range
would
be
based
on
an
evaluation
of
“incoming
data,
the
evolving
outlook,
and
the
balance
of
risks.”
The
FOMC
again
noted
it
will
continue
reducing
its
holdings
of
Treasury
securities,
agency
debt
and
agency
mortgage-backed
securities
as
delineated
in
its
Plans
for
Reducing
the
Size
of
the
Federal
Reserve’s
Balance
Sheet
released
in
conjunction
with
the
May
4,
2022
FOMC
meeting.
Daily
reverse
repurchase
agreement
(“RRP”)
utilization
decreased
as
front-end
rates
moderated.
Fed
RRP
balances
were
expected
to
continue
to
drain
into
2024
as
investors
who
favored
overnight
repo
as
an
alternative
to
short-dated
government
securities
rotated
into
new
Treasury
supply
and
dealer
repo
rates
remained
more
attractive,
in
our
opinion.
Throughout
the
period,
daily
utilization
of
the
Fed’s
RRP
averaged
~$1.15
trillion,
by
the
end
of
January
2024,
the
RRP
facility
held
a
balance
of
only
$615
billion.
The
Secured
Overnight
Financing
Rate
(“SOFR”)—a
broad
measure
of
the
cost
of
borrowing
cash
overnight
collateralized
by
Treasury
securities—
remained
rangebound
as
the
Fed
appeared
to
have
reached
the
end
of
the
hiking
cycle.
SOFR
closed
January
2024
at
5.32%
and
averaged
5.31%
for
the
term.
In
the
money
markets,
spreads
tightened
further
as
measured
by
the
3-month
Bloomberg
Short
Term
Bank
Yield
Index
to
Overnight
Indexed
Swap
(“BSBY-OIS”)
spread,
which
averaged
0.15%
during
the
period.
3-month
BSBY-OIS
started
August
2023
at
0.14%
and
ended
January
2024
at
0.10%.
Year-over-year,
assets
of
industry-wide
money
market
mutual
funds
(“MMF”s)
grew
by
a
record
breaking
$1.21
trillion.
Assets
of
government,
prime,
and
municipal
MMFs
grew
$936
billion,
$265
billion,
and
$6
billion,
respectively,
for
the
12-month
period
ended
January
31,
2024.
In
setting
strategy
for
the
remainder
of
the
year,
we
will
seek
opportunities
to
increase
our
holdings
of
longer-term
fixed
rate
investments
as
we
see
the
Fed
as
nearing
the
end
of
their
hiking
cycle.
The
high
likelihood
of
the
Fed
maintaining
rates
at
higher
levels
for
a
longer
period
of
time
would
also
indicate
floaters
indexed
to
SOFR
still
command
focus.
Fund
Information
as
of
January
31,
2024
5
Fund
Information
BlackRock
Liquid
Environmentally
Aware
Fund
Investment
Objective
BlackRock
Liquid
Environmentally
Aware
Fund’s
(the
“Fund”)
investment
objective
is
to
seek
as
high
a
level
of
current
income
as
is
consistent
with
liquidity
and
preservation
of
capital
while
giving
consideration
to
select
environmental
criteria.
Expense
Example
Fund
Information
Disclosure
of
Expenses
Shareholders
of
the
Fund
may
incur
the
following
charges:
(a)
transactional
expenses;
and
(b)
operating
expenses,
including
investment
advisory
fees, administration
fees,
service
and
distribution
fees and
other
fund
expenses.
The
expense
example
shown
(which
is
based
on
a
hypothetical
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
through
the
end
of
the
period)
is
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in
the
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
mutual
funds.
The
expense
example
provides
information
about
actual
account
values
and
actual
expenses.
Annualized
expense
ratios
reflect
contractual
and
voluntary
fee
waivers,
if
any.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their share
class
under
the
heading
entitled
“Expenses
Paid
During
the
Period.”
The
expense
example
also
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the
ongoing
expenses
of
investing
in
the
Fund
and
other
funds,
compare
the
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
shareholder
reports
of
other
funds.
The
expenses
shown
in
the
expense
example
are
intended
to
highlight
shareholders’
ongoing
costs
only
and
do
not
reflect
transactional
expenses,
such
as
sales
charges,
if
any.
Therefore,
the
hypothetical
example is
useful
in
comparing
ongoing
expenses
only
and
will
not
help
shareholders
determine
the
relative
total
expenses
of
owning
different
funds.
If
these
transactional
expenses
were
included,
shareholder
expenses
would
have
been
higher.
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(08/01/23)
Ending
Account
Value
(01/31/24)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(08/01/23)
Ending
Account
Value
(01/31/24)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00
$
1,027.50
$
1.02
$
1,000.00
$
1,024.13
$
1.02
0.20%
Bancroft
Capital
............................
1,000.00
1,027.50
1.02
1,000.00
1,024.13
1.02
0.20
Cabrera
Capital
Markets
......................
1,000.00
1,027.50
1.02
1,000.00
1,024.13
1.02
0.20
Direct
...................................
1,000.00
1,027.80
0.71
1,000.00
1,024.43
0.71
0.14
Great
Pacific
..............................
1,000.00
1,027.50
1.02
1,000.00
1,024.13
1.02
0.20
Mischler
Financial
Group
......................
1,000.00
1,027.40
1.02
1,000.00
1,024.13
1.02
0.20
Penserra
.................................
1,000.00
1,027.50
1.02
1,000.00
1,024.13
1.02
0.20
Investor
A
................................
1,000.00
1,026.10
2.29
1,000.00
1,022.87
2.29
0.45
(a)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(to
reflect
the
one-half
year
period
shown).
CURRENT
SEVEN-DAY
YIELDS
7-Day
SEC
Yields
7-Day
Yields
Institutional
..............................
5.34
%
5.34
%
Bancroft
Capital
...........................
5.33
5.33
Cabrera
Capital
Markets
.....................
5.34
5.34
Direct
..................................
5.40
5.40
Great
Pacific
.............................
5.34
5.34
Mischler
Financial
Group
.....................
5.34
5.34
Penserra
...............................
5.34
5.33
Investor
A
...............................
5.09
5.09
The
7-Day
SEC
Yields
may
differ
from
the
7-Day
Yields
shown
above
due
to
the
fact
that
the
7-Day
SEC
Yields
exclude
distributed
capital
gains.
Past
performance
is
not
an
indication
of
future
results.
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
Net
Assets
Commercial
Paper
...................................
38.2
%
Repurchase
Agreements
...............................
29.4
Certificates
of
Deposit
.................................
14.6
Time
Deposits
......................................
9.
2
Municipal
Bonds
....................................
1.1
U.S.
Government
Sponsored
Agency
Obligations
..............
0.
7
U.S.
Treasury
Obligations
..............................
0.4
Corporate
Bonds
....................................
0.2
Other
Assets
Less
Liabilities
............................
6.2
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
January
31,
2024
BlackRock
Liquid
Environmentally
Aware
Fund
6
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Pa
r
(
000)
Value
Certificates
of
Deposit
Domestic
—
3.1%
Bank
of
America
NA
5.44%, 02/06/24
..................
USD
3,678
$
3,677,323
5.90%, 05/14/24
..................
3,000
3,002,813
6.00%, 08/21/24
..................
3,000
3,009,381
5.75%, 11/14/24
..................
6,000
6,023,101
Citibank
NA
5.80%, 02/26/24
-
03/18/24
...........
7,450
7,451,659
5.89%, 05/10/24
..................
3,000
3,003,022
5.92%, 06/20/24
..................
7,000
7,011,144
33,178,443
Yankee
—
11.5%
(a)
Bank
of
Montreal,
Chicago
5.82%, 05/28/24
..................
1,000
1,000,703
5.60%, 11/29/24
..................
5,000
5,017,849
Bank
of
Nova
Scotia
(The),
Houston,
(1-day
SOFR
+
0.47%),
5.78%, 06/03/24
(b)
.....
6,000
6,003,726
Barclays
Bank
plc,
New
York,
5.57%, 06/20/24
3,000
3,001,823
BNP
Paribas
SA,
New
York
5.72%, 08/19/24
..................
3,000
3,006,102
5.23%, 12/18/24
..................
4,000
4,002,828
Canadian
Imperial
Bank
of
Commerce,
New
York
5.40%, 02/08/24
..................
3,000
2,999,902
5.60%, 03/04/24
..................
4,000
3,999,696
5.90%, 06/13/24
..................
6,650
6,659,060
Commonwealth
Bank
of
Australia,
New
York,
5.70%, 11/27/24
..................
6,500
6,530,853
Credit
Agricole
Corporate
&
Investment
Bank
SA,
New
York,
5.69%, 05/21/24
........
7,000
7,005,271
Credit
Industriel
et
Commercial,
New
York
(1-day
SOFR
+
0.37%),
5.68%, 04/08/24
(b)
.
5,000
5,002,302
5.46%, 06/17/24
..................
5,000
5,001,622
Mizuho
Bank
Ltd.,
New
York,
(1-day
SOFR
+
0.41%),
5.72%, 02/20/24
(b)
...........
8,000
8,001,420
MUFG
Bank
Ltd.,
New
York,
5.71%, 05/28/24
.
2,500
2,501,592
Nordea
Bank
Abp,
New
York
5.15%, 02/02/24
..................
7,000
6,999,830
(1-day
SOFR
+
0.52%),
5.83%, 04/18/24
(b)
.
7,000
7,006,077
Sumitomo
Mitsui
Trust
Bank
Ltd.,
New
York
5.42%, 04/26/24
..................
11,500
11,499,845
(1-day
SOFR
+
0.27%),
5.58%, 07/08/24
(b)
.
6,500
6,503,108
(1-day
SOFR
+
0.21%),
5.52%, 07/22/24
(b)
.
6,000
6,001,014
(1-day
SOFR
+
0.18%),
5.49%, 08/01/24
(b)
.
6,000
5,999,906
Toronto-Dominion
Bank
(The),
New
York
5.82%, 05/24/24
..................
5,000
5,002,525
6.00%, 10/02/24
..................
2,000
2,009,519
Westpac
Banking
Corp.,
New
York
(b)
(1-day
SOFR
+
0.59%),
5.90%, 05/22/24
..
4,000
4,006,018
(1-day
SOFR
+
0.30%),
5.61%, 01/31/25
..
1,000
999,599
125,762,190
Total
Certificates
of
Deposit
—
14.6%
(Cost:
$158,778,385)
..............................
158,940,633
Commercial
Paper
Alinghi
Funding
Co.
LLC
(c)
5.50%,
03/28/24
..................
6,000
5,948,928
5.44%,
06/12/24
(d)
.................
6,500
6,373,645
5.44%,
06/18/24
(d)
.................
3,500
3,428,964
Aquitaine
Funding
Co.
LLC
(c)
5.43%,
02/01/24
(d)
.................
5,000
4,999,257
5.47%,
02/16/24
..................
10,000
9,976,064
Security
Par
(000)
Par
(000)
Value
Commercial
Paper
(continued)
5.50%,
02/23/24
..................
USD
14,000
$
13,951,682
5.53%,
03/04/24
(d)
.................
5,000
4,975,112
Australia
&
New
Zealand
Banking
Group
Ltd.
(d)
(1-day
SOFR
+
0.50%),
5.81%,
04/02/24
(b)
2,500
2,501,688
5.28%,
08/29/24
(c)
.................
6,500
6,306,763
Bank
of
Montreal
(c)
5.46%,
04/03/24
..................
3,000
2,972,002
5.16%,
11/07/24
..................
8,500
8,172,505
Barclays
Bank
plc,
5.35%
,
02/01/24
(c)(d)
.....
10,000
9,998,534
Barton
Capital
SA,
5.50%
,
03/20/24
(c)(d)
.....
6,840
6,789,869
BNZ
International
Funding
Ltd.,
5.46%
,
03/13/24
(c)(d)
.....................
7,000
6,955,998
BPCE
SA,
5.40%
,
02/07/24
(c)(d)
...........
8,000
7,991,729
Britannia
Funding
Co.
LLC
(d)
5.45%,
02/16/24
(c)
.................
17,000
16,959,523
5.47%,
02/21/24
(c)
.................
4,500
4,485,893
5.47%,
02/22/24
(c)
.................
2,000
1,993,428
(1-day
SOFR
+
0.20%),
5.51%,
04/25/24
(b)
3,000
3,000,013
Caisse
d'Amortissement
de
la
Dette
Sociale,
5.43%
,
02/26/24
(c)(d)
................
15,000
14,942,261
Citigroup
Global
Markets,
Inc.,
5.58%
,
03/22/24
(c)
......................
6,000
5,953,352
Columbia
Funding
Co.
LLC
(c)(d)
5.40%,
02/01/24
..................
7,500
7,498,891
5.55%,
04/16/24
..................
12,000
11,862,829
Commonwealth
Bank
of
Australia,
5.40%
,
02/16/24
(d)
......................
13,000
12,998,723
DNB
Bank
ASA
(c)(d)
5.38%,
05/28/24
..................
7,000
6,880,426
5.36%,
06/13/24
..................
5,000
4,903,525
5.36%,
07/30/24
..................
3,000
2,922,312
5.07%,
01/22/25
..................
4,000
3,807,326
FMS
Wertmanagement
(c)
5.44%,
05/02/24
..................
2,000
1,972,936
5.44%,
05/03/24
..................
2,000
1,972,655
HAT
Holdings
I
LLC
(c)
5.47%,
02/06/24
..................
6,500
6,494,164
5.47%,
02/09/24
..................
5,000
4,993,260
5.51%,
02/29/24
..................
10,000
9,956,427
Hydro-Quebec
(c)
5.34%,
02/05/24
(d)
.................
10,000
9,992,685
5.41%,
03/01/24
..................
9,000
8,960,175
5.42%,
03/13/24
(d)
.................
10,425
10,360,368
ING
US
Funding
LLC
(c)(d)
5.45%,
06/14/24
..................
6,000
5,881,425
5.33%,
09/03/24
..................
3,000
2,907,872
Kreditanstalt
fuer
Wiederaufbau,
5.39%
,
05/02/24
(c)(d)
.....................
5,000
4,932,940
Mackinac
Funding
Co.
LLC
(c)
5.49%,
03/06/24
..................
8,000
7,958,130
5.46%,
06/07/24
(d)
.................
7,000
6,868,386
Macquarie
Bank
Ltd.
5.47%,
02/12/24
(c)(d)
................
3,000
2,994,616
(1-day
SOFR
+
0.38%),
5.69%,
02/16/24
(b)(d)
9,000
9,001,148
5.50%,
03/01/24
(c)(d)
................
10,000
9,955,000
5.67%,
04/08/24
(c)
.................
2,580
2,553,054
5.66%,
04/12/24
(c)(d)
................
5,500
5,439,236
5.66%,
04/18/24
(c)(d)
................
4,000
3,952,195
5.41%,
08/01/24
(c)(d)
................
2,000
1,947,167
5.38%,
08/28/24
(c)
.................
3,500
3,394,507
National
Australia
Bank
Ltd.
(d)
5.35%,
02/01/24
(c)
.................
3,000
2,999,560
(1-day
SOFR
+
0.48%),
5.79%,
02/02/24
(b)
7,000
7,000,146
(1-day
SOFR
+
0.50%),
5.81%,
04/12/24
(b)
3,000
3,002,406
Schedule
of
Investments
(unaudited)
(continued)
January
31,
2024
BlackRock
Liquid
Environmentally
Aware
Fund
Schedule
of
Investments
7
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Commercial
Paper
(continued)
5.53%,
04/15/24
(c)
.................
USD
6,500
$
6,426,943
(1-day
SOFR
+
0.35%),
5.66%,
04/19/24
(b)
6,000
6,003,388
5.19%,
10/04/24
(c)
.................
6,000
5,793,769
Natixis
SA,
5.38%
,
02/07/24
(c)
...........
5,000
4,994,842
Province
of
British
Columbia,
5.47%
,
04/10/24
(c)
5,650
5,591,371
Royal
Bank
of
Canada
(b)(d)
(1-day
SOFR
+
0.60%),
5.91%,
05/23/24
.
7,000
7,010,333
(1-day
SOFR
+
0.35%),
5.66%,
01/21/25
.
2,000
2,000,023
Swedbank
AB,
5.39%
,
03/14/24
(c)
.........
4,000
3,974,742
UBS
AG,
5.55%
,
05/31/24
(c)
.............
4,000
3,927,733
Versailles
Commercial
Paper
LLC,
5.49%
,
05/15/24
(c)(d)
.....................
8,000
7,875,587
Victory
Receivables
Corp.,
5.42%
,
02/09/24
(c)(d)
6,869
6,859,832
Westpac
Banking
Corp.
(1-day
SOFR
+
0.50%),
5.81%,
04/19/24
(b)(d)
4,000
4,003,411
(1-day
SOFR
+
0.52%),
5.83%,
04/19/24
(b)(d)
3,500
3,503,139
(1-day
SOFR
+
0.47%),
5.78%,
07/22/24
(b)(d)
6,000
6,010,551
5.12%,
11/07/24
(c)
.................
3,500
3,365,211
5.11%,
11/14/24
(c)(d)
................
4,750
4,562,835
Total
Commercial
Paper
—
38.2%
(Cost:
$416,798,854)
..............................
416,945,410
Corporate
Bonds
Consumer
Finance
—
0.2%
Toyota
Motor
Credit
Corp.,
(1-day
SOFR
+
0.38%),
5.71%,
02/22/24
(b)
...........
2,270
2,270,149
Total
Corporate
Bonds
—
0.2%
(Cost:
$2,270,000)
...............................
2,270,149
Municipal
Bonds
Colorado
—
0.9%
(e)
Colorado
Housing
&
Finance
Authority
,
Series
2021C-2,
RB
,
VRDN
(Federal
Home
Loan
Bank
SBPA)
,
5.35%, 02/07/24
.........
4,935
4,935,000
Colorado
Housing
&
Finance
Authority
,
Series
2021M-2,
RB
,
VRDN
(Barclays
Bank
plc
SBPA)
,
5.37%, 02/07/24
.............
5,370
5,370,000
10,305,000
Other
—
0.2%
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates,
Various
States
,
Series
2020-MIZ9043,
RB
,
VRDN
(Mizuho
Bank
Ltd.
LOC)
,
5.43%, 02/07/24
(d)
(e)(f)
...........................
1,770
1,770,000
Total
Municipal
Bonds
—
1.1%
(Cost:
$12,075,000)
...............................
12,075,000
Security
Par
(000)
Pa
r
(
000)
Value
Time
Deposits
Canadian
Imperial
Bank
of
Commerce,
5.31%, 02/01/24
..................
USD
10,000
$
10,000,000
Credit
Agricole
Corporate
&
Investment
Bank
SA,
5.30%, 02/01/24
...............
8,772
8,772,000
Royal
Bank
of
Canada,
5.32%, 02/01/24
....
31,000
31,000,000
Skandinaviska
Enskilda
Banken
AB,
5.32%, 02/01/24
..................
35,000
35,000,000
Svenska
Handelsbanken
AB,
5.31%, 02/01/24
15,000
15,000,000
Total
Time
Deposits
—
9.1%
(Cost:
$99,772,000)
...............................
99,772,000
U.S.
Government
Sponsored
Agency
Obligations
Agency
Obligations
—
0.8%
United
States
International
Development
Finance
Corp.
Variable
Rate
Notes
(3-mo.
Treasury
Bill
Rate
+
0.00%),
5.51%
,
02/07/24
(b)
...............
8,065
8,065,476
Total
U.S.
Government
Sponsored
Agency
Obligations
—
0.8%
(Cost:
$8,065,476)
...............................
8,065,476
U.S.
Treasury
Obligations
U.S.
Treasury
Bills
,
4.84%, 10/03/24
(c)
......
3,500
3,388,713
U.S.
Treasury
Notes
,
(US
Treasury
3
Month
Bill
Money
Market
Yield
+
0.17%),
5.46%, 04/30/25
(b)
.................
1,000
999,730
Total
U.S.
Treasury
Obligations
—
0.4%
(Cost:
$4,380,146)
...............................
4,388,443
Total
Repurchase
Agreements
—
29.4%
(Cost:
$320,500,000)
..............................
320,500,000
Total
Investments
—
93.8%
(Cost:
$1,022,639,861
)
(g)
...........................
1,022,957,111
Other
Assets
Less
Liabilities
—
6.2%
....................
68,074,494
Net
Assets
—
100.0%
...............................
$
1,091,031,605
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
January
31,
2024
BlackRock
Liquid
Environmentally
Aware
Fund
8
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the Schedule
of
Investments
above.
See
notes
to
financial
statements.
(a)
Issuer
is
a
U.S.
branch
of
a
foreign
domiciled
bank.
(b)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(c)
Rates
are
the
current
rate
or
a
range
of
current
rates
as
of
period
end.
(d)
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.
(e)
Variable
rate
security.
Rate
as
of
period
end
and
maturity
is
the
date
the
principal
owed
can
be
recovered
through
demand.
(f)
These
securities
are
short-term
floating
rate
certificates
issued
by
tender
option
bond
trusts
and
are
secured
by
the
underlying
municipal
bond
securities.
(g)
Cost
for
U.S.
federal
income
tax
purposes.
Repurchase
Agreements
Repurchase
Agreements
Collateral
Counterparty
Coupon
Rate
Purchase
Date
Maturity
Date
Par
(000)
A
t
Value
Proceeds
Including
Interest
Position
Original
Par
Position
Received,
At
Value
Bank
of
America
Securities,
Inc.
...
5.32
%
01/31/24
02/01/24
$
10,000
$
10,000,000
$
10,001,478
U.S.
Government
Sponsored
Agency
Obligations,
0.02%
to
3.50%,
due
01/20/38
to
02/20/70
.........
$
456,482,191
$
10,500,000
–
–
BMO
Capital
Markets
Corp.
..........
5.32
01/31/24
02/01/24
120,000
120,000,000
120,017,733
U.S.
Government
Sponsored
Agency
Obligations,
0.00%
to
7.00%,
due
02/25/24
to
03/20/73
.........
3,584,905,109
126,000,058
–
–
Citigroup
Global
Markets,
Inc.
...........
5.32
01/31/24
02/01/24
75,000
75,000,000
75,011,083
U.S.
Government
Sponsored
Agency
Obligations,
0.50%
to
7.13%,
due
02/05/24
to
04/24/34
.........
77,225,000
76,500,353
–
–
Goldman
Sachs
&
Co.
LLC
...........
5.32
01/31/24
02/01/24
105,500
105,500,000
105,515,591
U.S.
Treasury
Obligations,
0.50%
to
5.49%,
due
01/31/25
to
05/15/41
.........
107,994,400
107,610,091
–
–
JP
Morgan
Securities
LLC
...........
5.32
01/31/24
02/01/24
10,000
10,000,000
10,001,478
U.S.
Government
Sponsored
Agency
Obligation,
5.50%,
due
01/20/54
.........
10,108,586
10,200,001
–
–
$
320,500,000
$
330,810,503
–
–
Level
1
Level
2
Level
3
Total
Assets
Investments
Short-Term
Securities
Certificates
of
Deposit
.....................................
$
—
$
158,940,633
$
—
$
158,940,633
Commercial
Paper
.......................................
—
416,945,410
—
416,945,410
Corporate
Bonds
........................................
—
2,270,149
—
2,270,149
Municipal
Bonds
.........................................
—
12,075,000
—
12,075,000
Repurchase
Agreements
...................................
—
320,500,000
—
320,500,000
Time
Deposits
..........................................
—
99,772,000
—
99,772,000
U.S.
Government
Sponsored
Agency
Obligations
...................
—
8,065,476
—
8,065,476
U.S.
Treasury
Obligations
...................................
—
4,388,443
—
4,388,443
$
—
$
1,022,957,111
$
—
$
1,022,957,111
Statement
of
Assets
and
Liabilities
(unaudited)
January
31,
2024
9
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
........................................................................................
$
702,457,111
Cash
.............................................................................................................
64,405,692
Repurchase
agreements,
at
value
(b)
.........................................................................................
320,500,000
Receivables:
–
Capital
shares
sold
...................................................................................................
2,457,784
Interest
—
unaffiliated
.................................................................................................
3,695,324
From
the
Manager
...................................................................................................
46,479
Prepaid
e
xpenses
.....................................................................................................
97,871
Total
a
ssets
.........................................................................................................
1,093,660,261
LIABILITIES
Payables:
–
Administration
fees
...................................................................................................
71,119
Capital
shares
redeemed
...............................................................................................
605,968
Income
dividend
distributions
............................................................................................
1,565,673
Investment
advisory
fees
..............................................................................................
106,865
Trustees'
and
Officer's
fees
.............................................................................................
3,395
Professional
fees
....................................................................................................
98,305
Service
fees
.......................................................................................................
213
Other
accrued
expenses
...............................................................................................
177,118
Total
li
abilities
........................................................................................................
2,628,656
Commitments
and
contingent
liabilities
$
–
NET
ASSETS
........................................................................................................
$
1,091,031,605
NET
ASSETS
CONSIST
OF:
Paid-in
capital
........................................................................................................
$
1,090,686,776
Accumulated
earnings
..................................................................................................
344,829
NET
ASSETS
........................................................................................................
$
1,091,031,605
(a)
Investments,
at
cost
—
unaffiliated
.................................................................................
$
702,139,861
(b)
Repurchase
agreements,
at
cost
..................................................................................
$
320,500,000
Statement
of
Assets
and
Liabilities
(unaudited)
(continued)
January
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
10
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
NET
ASSET
VALUE
Institutional
Net
assets
.........................................................................................................
$
464,005,270
Shares
outstanding
..................................................................................................
463,783,571
Net
asset
value
.....................................................................................................
$
1.0005
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Bancroft
Capital
Net
assets
.........................................................................................................
$
53,662
Shares
outstanding
..................................................................................................
53,636
Net
asset
value
.....................................................................................................
$
1.0005
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Cabrera
Capital
Markets
Net
assets
.........................................................................................................
$
185,267
Shares
outstanding
..................................................................................................
185,177
Net
asset
value
.....................................................................................................
$
1.0005
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Direct
Net
assets
.........................................................................................................
$
600,197,814
Shares
outstanding
..................................................................................................
599,881,697
Net
asset
value
.....................................................................................................
$
1.0005
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Great
Pacific
Net
assets
.........................................................................................................
$
513,318
Shares
outstanding
..................................................................................................
513,074
Net
asset
value
.....................................................................................................
$
1.0005
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Mischler
Financial
Group
Net
assets
.........................................................................................................
$
25,169,906
Shares
outstanding
..................................................................................................
25,156,520
Net
asset
value
.....................................................................................................
$
1.0005
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Penserra
Net
assets
.........................................................................................................
$
53,671
Shares
outstanding
..................................................................................................
53,645
Net
asset
value
.....................................................................................................
$
1.0005
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Investor
A
Net
assets
.........................................................................................................
$
852,697
Shares
outstanding
..................................................................................................
852,260
Net
asset
value
.....................................................................................................
$
1.0005
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Statement
of
Operations
(unaudited)
Six
Months
Ended
January
31,
2024
11
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
INVESTMENT
INCOME
Interest
—
unaffiliated
.................................................................................................
$
35,573,849
Total
investment
income
.................................................................................................
35,573,849
EXPENSES
Investment
advisory
..................................................................................................
643,338
Administration
—
class
specific
..........................................................................................
418,164
Registration
.......................................................................................................
83,450
Professional
.......................................................................................................
70,445
Printing
and
postage
.................................................................................................
48,302
Accounting
services
..................................................................................................
39,304
Custodian
.........................................................................................................
16,249
Trustees
and
Officer
..................................................................................................
8,624
Service
—
class
specific
...............................................................................................
1,152
Transfer
agent
—
class
specific
..........................................................................................
814
Miscellaneous
......................................................................................................
31,572
Total
expenses
.......................................................................................................
1,361,414
Less:
–
Fees
waived
and/or
reimbursed
by
the
Manager
...............................................................................
(
295,809
)
Transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific
..........................................................
(
814
)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
1,064,791
Net
investment
income
..................................................................................................
34,509,058
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
481,960
Net
realized
gain
from
investments
........................................................................................
902
Net
change
in
unrealized
appreciation
on
investments
...........................................................................
481,057
Net
realized
and
unrealized
gain
...........................................................................................
481,959
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
..................................................................
$
34,991,017
Statements
of
Changes
in
Net
Assets
2024
BlackRock
Semi-Annual
Report
to
Shareholders
12
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..............................................................................
$
34,509,058
$
50,185,318
Net
realized
gain
..................................................................................
902
256
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
481,057
490,138
Net
increase
in
net
assets
resulting
from
operations
.............................................................
34,991,017
50,675,712
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Institutional
.....................................................................................
(
13,567,513
)
(
18,216,907
)
Bancroft
Capital
..................................................................................
(
1,415
)
(
2,085
)
Cabrera
Capital
Markets
............................................................................
(
4,885
)
(
5,208
)
Direct
.........................................................................................
(
20,224,368
)
(
31,049,277
)
Great
Pacific
....................................................................................
(
13,534
)
(
14,407
)
Mischler
Financial
Group
............................................................................
(
672,492
)
(
861,956
)
Penserra
......................................................................................
(
1,416
)
(
2,086
)
Investor
A
......................................................................................
(
23,437
)
(
33,430
)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(34,509,060
)
(50,185,356
)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
(decrease)
in
net
assets
derived
from
capital
share
transactions
...........................................
(196,087,601
)
184,636,825
NET
ASSETS
Total
increase
(decrease)
in
net
assets
.....................................................................
(
195,605,644
)
185,127,181
Beginning
of
period
..................................................................................
1,286,637,249
1,101,510,068
End
of
period
......................................................................................
$
1,091,031,605
$
1,286,637,249
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
13
Financial
Highlights
2
BlackRock
Liquid
Environmentally
Aware
Fund
Institutional
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Period
from
04/08/19
(a)
to
07/31/19
Net
asset
value,
beginning
of
period
...........
$
1.0001
$
0.9997
$
1.0005
$
1.0010
$
1.0001
$
1.0000
Net
investment
income
(b)
...................
0
.0268
0
.0430
0
.0032
0
.0005
0
.0116
0
.0072
Net
realized
and
unrealized
gain
(loss)
..........
0
.0004
(
0
.0018
)
(c)
(
0
.0008
)
(
0
.0003
)
0
.0021
0
.0002
Net
increase
from
investment
operations
..........
0.0272
0.0412
0.0024
0.0002
0.0137
0.0074
Distributions
(d)
–
–
–
–
–
–
From
net
investment
income
................
(
0
.0268
)
(
0
.0408
)
(
0
.0032
)
(
0
.0006
)
(
0
.0128
)
(
0
.0073
)
From
net
realized
gain
.....................
—
—
—
(
0
.0001
)
(
0
.0000
)
(e)
—
Total
distributions
.........................
(0.0268
)
(0.0408
)
(0.0032
)
(0.0007
)
(0.0128
)
(0.0073
)
Net
asset
value,
end
of
period
................
$
1.0005
$
1.0001
$
0.9997
$
1.0005
$
1.0010
$
1.0001
Total
Return
(f)
—
—
—
—
—
—
Based
on
net
asset
value
....................
2.75
%
(g)
4.20
%
0.24
%
0.02
%
1.38
%
0.75
%
(g)
Ratios
to
Average
Net
Assets
Total
expen
ses
...........................
0.25
%
(h)
0.25
%
0.26
%
0.24
%
0.28
%
0.30
%
(h)
(i)
Total
expenses
after
fees
waived
and/or
reimbursed
..
0.20
%
(h)
0.20
%
0.16
%
0.17
%
0.21
%
0.19
%
(h)
Net
investment
income
.....................
5.33
%
(h)
4.30
%
0.32
%
0.05
%
1.16
%
2.30
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
................
$
464,005
$
495,968
$
240,465
$
322,578
$
227,698
$
65,788
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(d)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(e)
Amount
is
greater
than
$(0.00005)
per
share.
(f)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(g)
Not
annualized.
(h)
Annualized.
(i)
Audit
and
offering
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
0.37%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
14
BlackRock
Liquid
Environmentally
Aware
Fund
Bancroft
Capital
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Period
from
10/29/21
(a)
to
07/31/22
Net
asset
value,
beginning
of
period
........................................................
$
1.0001
$
0.9997
$
1.0004
Net
investment
income
(b)
................................................................
0
.0268
0
.0409
0
.0030
Net
realized
and
unrealized
gain
(loss)
.......................................................
0
.0004
0
.0003
(
0
.0006
)
Net
increase
from
investment
operations
.......................................................
0.0272
0.0412
0.0024
Distributions
from
net
investment
income
(c)
...................................................
(0.0268
)
(0.0408
)
(0.0031
)
Net
asset
value,
end
of
period
.............................................................
$
1.0005
$
1.0001
$
0.9997
Total
Return
(d)
—
—
—
Based
on
net
asset
value
.................................................................
2.75
%
(e)
4.20
%
0.24
%
(e)
Ratios
to
Average
Net
Assets
Total
expen
ses
........................................................................
0.30
%
(f)
0.32
%
0.32
%
(f)
Total
expenses
after
fees
waived
and/or
reimbursed
...............................................
0.20
%
(f)
0.20
%
0.18
%
(f)
Net
investment
income
..................................................................
5.33
%
(f)
4.09
%
0.40
%
(f)
Supplemental
Data
Net
assets,
end
of
period
(000)
.............................................................
$
54
$
52
$
50
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Annualized.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
15
Financial
Highlights
BlackRock
Liquid
Environmentally
Aware
Fund
Cabrera
Capital
Markets
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Period
from
10/29/21
(a)
to
07/31/22
Net
asset
value,
beginning
of
period
........................................................
$
1.0001
$
0.9997
$
1.0004
Net
investment
income
(b)
................................................................
0
.0268
0
.0452
0
.0030
Net
realized
and
unrealized
gain
(loss)
.......................................................
0
.0004
(
0
.0040
)
(c)
(
0
.0006
)
Net
increase
from
investment
operations
.......................................................
0.0272
0.0412
0.0024
Distributions
from
net
investment
income
(d)
...................................................
(0.0268
)
(0.0408
)
(0.0031
)
Net
asset
value,
end
of
period
.............................................................
$
1.0005
$
1.0001
$
0.9997
Total
Return
(e)
—
—
—
Based
on
net
asset
value
.................................................................
2.75
%
(f)
4.20
%
0.24
%
(f)
Ratios
to
Average
Net
Assets
Total
expen
ses
........................................................................
0.28
%
(g)
0.28
%
0.32
%
(g)
Total
expenses
after
fees
waived
and/or
reimbursed
...............................................
0.20
%
(g)
0.20
%
0.18
%
(g)
Net
investment
income
..................................................................
5.33
%
(g)
4.52
%
0.40
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
.............................................................
$
185
$
180
$
50
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(d)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Not
annualized.
(g)
Annualized.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
16
BlackRock
Liquid
Environmentally
Aware
Fund
Direct
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Period
from
04/08/19
(a)
to
07/31/19
Net
asset
value,
beginning
of
period
..........
$
1.0001
$
0.9997
$
1.0005
$
1.0010
$
1.0001
$
1.0000
Net
investment
income
(b)
..................
0
.0271
0
.0410
0
.0034
0
.0010
0
.0125
0
.0076
Net
realized
and
unrealized
gain
(loss)
.........
0
.0004
0
.0008
(
0
.0007
)
(
0
.0005
)
0
.0021
0
.0001
Net
increase
from
investment
operations
.........
0.0275
0.0418
0.0027
0.0005
0.0146
0.0077
Distributions
(c)
–
–
–
–
–
–
From
net
investment
income
...............
(
0
.0271
)
(
0
.0414
)
(
0
.0035
)
(
0
.0009
)
(
0
.0137
)
(
0
.0076
)
From
net
realized
gain
....................
—
—
—
(
0
.0001
)
(
0
.0000
)
(d)
—
Total
distributions
........................
(0.0271
)
(0.0414
)
(0.0035
)
(0.0010
)
(0.0137
)
(0.0076
)
Net
asset
value,
end
of
period
...............
$
1.0005
$
1.0001
$
0.9997
$
1.0005
$
1.0010
$
1.0001
Total
Return
(e)
—
—
—
—
—
—
Based
on
net
asset
value
...................
2.78
%
(f)
4.26
%
0.27
%
0.06
%
1.47
%
0.78
%
(f)
Ratios
to
Average
Net
Assets
Total
expen
ses
..........................
0.19
%
(g)
0.19
%
0.19
%
0.18
%
0.19
%
0.22
%
(g)
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
.
0.14
%
(g)
0.14
%
0.13
%
0.14
%
0.12
%
0.09
%
(g)
Net
investment
income
....................
5.39
%
(g)
4.10
%
0.34
%
0.10
%
1.25
%
2.45
%
(g)
Supplemental
Data
Net
assets,
end
of
period
(000)
...............
$
600,198
$
763,959
$
850,305
$
893,026
$
886,881
$
333,890
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Amount
is
greater
than
$(0.00005)
per
share.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Not
annualized.
(g)
Annualized.
(h)
Audit
and
offering
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
0.29%.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
17
Financial
Highlights
BlackRock
Liquid
Environmentally
Aware
Fund
Great
Pacific
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Period
from
05/02/22
(a)
to
07/31/22
Net
asset
value,
beginning
of
period
........................................................
$
1.0001
$
0.9996
$
0.9996
Net
investment
income
(b)
................................................................
0
.0268
0
.0464
0
.0026
Net
realized
and
unrealized
gain
(loss)
.......................................................
0
.0004
(
0
.0051
)
(c)
0
.0000
(d)
Net
increase
from
investment
operations
.......................................................
0.0272
0.0413
0.0026
Distributions
from
net
investment
income
(e)
...................................................
(0.0268
)
(0.0408
)
(0.0026
)
Net
asset
value,
end
of
period
.............................................................
$
1.0005
$
1.0001
$
0.9996
Total
Return
(f)
—
—
—
Based
on
net
asset
value
.................................................................
2.75
%
(g)
4.21
%
0.26
%
(g)
Ratios
to
Average
Net
Assets
Total
expen
ses
........................................................................
0.26
%
(h)
0.27
%
0.27
%
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
...............................................
0.20
%
(h)
0.20
%
0.20
%
(h)
Net
investment
income
..................................................................
5.33
%
(h)
4.64
%
1.06
%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
.............................................................
$
513
$
500
$
50
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(d)
Amount
is
less
than
$0.00005
per
share.
(e)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(f)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(g)
Not
annualized.
(h)
Annualized.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
18
BlackRock
Liquid
Environmentally
Aware
Fund
Mischler
Financial
Group
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Year
Ended
07/31/22
Period
from
05/20/21
(a)
to
07/31/21
Net
asset
value,
beginning
of
period
........................................
$
1.0002
$
0.9997
$
1.0005
$
1.0005
Net
investment
income
(b)
................................................
0
.0268
0
.0442
0
.0027
0
.0000
(c)
Net
realized
and
unrealized
gain
(loss)
.......................................
0
.0003
(
0
.0029
)
(d)
(
0
.0003
)
0
.0000
(c)
(d)
Net
increase
from
investment
operations
.......................................
0.0271
0.0413
0.0024
0.0000
Distributions
from
net
investment
income
(e)
...................................
(0.0268
)
(0.0408
)
(0.0032
)
(0.0000
)
(f)
Net
asset
value,
end
of
period
.............................................
$
1.0005
$
1.0002
$
0.9997
$
1.0005
Total
Return
(g)
—
—
—
—
Based
on
net
asset
value
.................................................
2.74
%
(h)
4.21
%
0.24
%
0.00
%
(h)
(i)
Ratios
to
Average
Net
Assets
Total
expen
ses
........................................................
0.25
%
(j)
0.25
%
0.25
%
0.26
%
(j)
Total
expenses
after
fees
waived
and/or
reimbursed
...............................
0.20
%
(j)
0.20
%
0.17
%
0.14
%
(j)
Net
investment
income
..................................................
5.33
%
(j)
4.42
%
0.27
%
0.02
%
(j)
Supplemental
Data
Net
assets,
end
of
period
(000)
.............................................
$
25,170
$
25,046
$
10,023
$
50
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Amount
is
less
than
$0.00005
per
share.
(d)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(e)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(f)
Amount
is
greater
than
$(0.00005)
per
share.
(g)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(h)
Not
annualized.
(i)
Amount
is
less
than
0.005%.
(j)
Annualized.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
19
Financial
Highlights
BlackRock
Liquid
Environmentally
Aware
Fund
Penserra
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Period
from
01/21/22
(a)
to
07/31/22
Net
asset
value,
beginning
of
period
........................................................
$
1.0001
$
0.9997
$
1.0001
Net
investment
income
(b)
................................................................
0
.0268
0
.0409
0
.0030
Net
realized
and
unrealized
gain
(loss)
.......................................................
0
.0004
0
.0003
(
0
.0004
)
Net
increase
from
investment
operations
.......................................................
0.0272
0.0412
0.0026
Distributions
from
net
investment
income
(c)
...................................................
(0.0268
)
(0.0408
)
(0.0030
)
Net
asset
value,
end
of
period
.............................................................
$
1.0005
$
1.0001
$
0.9997
Total
Return
(d)
—
—
—
Based
on
net
asset
value
.................................................................
2.75
%
(e)
4.20
%
0.26
%
(e)
Ratios
to
Average
Net
Assets
Total
expen
ses
........................................................................
0.30
%
(f)
0.33
%
0.32
%
(f)
Total
expenses
after
fees
waived
and/or
reimbursed
...............................................
0.20
%
(f)
0.20
%
0.19
%
(f)
Net
investment
income
..................................................................
5.33
%
(f)
4.09
%
0.57
%
(f)
Supplemental
Data
Net
assets,
end
of
period
(000)
.............................................................
$
54
$
52
$
50
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Annualized.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
20
BlackRock
Liquid
Environmentally
Aware
Fund
Investor
A
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Period
from
04/08/19
(a)
to
07/31/19
Net
asset
value,
beginning
of
period
..........
$
1.0002
$
0.9997
$
1.0005
$
1.0010
$
1.0001
$
1.0000
Net
investment
income
(b)
..................
0
.0255
0
.0411
0
.0024
0
.0004
0
.0098
0
.0066
Net
realized
and
unrealized
gain
(loss)
.........
0
.0003
(
0
.0023
)
(c)
(
0
.0008
)
(
0
.0004
)
0
.0015
0
.0001
Net
increase
from
investment
operations
.........
0.0258
0.0388
0.0016
0.0000
0.0113
0.0067
Distributions
(d)
–
–
–
–
–
–
From
net
investment
income
...............
(
0
.0255
)
(
0
.0383
)
(
0
.0024
)
(
0
.0004
)
(
0
.0104
)
(
0
.0066
)
From
net
realized
gain
....................
—
—
—
(
0
.0001
)
(
0
.0000
)
(e)
—
Total
distributions
........................
(0.0255
)
(0.0383
)
(0.0024
)
(0.0005
)
(0.0104
)
(0.0066
)
Net
asset
value,
end
of
period
...............
$
1.0005
$
1.0002
$
0.9997
$
1.0005
$
1.0010
$
1.0001
Total
Return
(f)
—
—
—
—
—
—
Based
on
net
asset
value
...................
2.61
%
(g)
3.95
%
0.16
%
0.00
%
(h)
1.13
%
0.67
%
(g)
Ratios
to
Average
Net
Assets
Total
expen
ses
..........................
0.55
%
(i)
0.55
%
0.63
%
0.61
%
0.56
%
0.58
%
(i)
(j)
Total
expenses
after
fees
waived
and/or
reimbursed
.
0.45
%
(i)
0.45
%
0.25
%
0.19
%
0.45
%
0.44
%
(i)
Net
investment
income
....................
5.08
%
(i)
4.11
%
0.24
%
0.04
%
0.98
%
2.10
%
(i)
Supplemental
Data
Net
assets,
end
of
period
(000)
...............
$
853
$
880
$
518
$
286
$
351
$
252
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(d)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(e)
Amount
is
greater
than
$(0.00005)
per
share.
(f)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(g)
Not
annualized.
(h)
Amount
is
less
than
0.005%.
(i)
Annualized.
(j)
Audit
and
offering
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
0.65%.
See
notes
to
financial
statements.
Notes
to
Financial
Statements
(unaudited)
21
Notes
to
Financial
Statements
1.
ORGANIZATION
BlackRock
Funds
SM
(the
“Trust”)
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
management
investment
company.
The Trust
is
organized
as
a
Massachusetts
business
trust.
BlackRock
Liquid
Environmentally
Aware
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,
except
that
certain
classes
bear
expenses
related
to
the
shareholder
servicing
and
distribution
of
such
shares.
Institutional
Shares
are
sold
only
to
certain
eligible
investors.
Direct
Shares
are
generally
only
available
to
investors
on
eligible
electronic
platforms.
Bancroft
Capital
Shares
are
only
available
to
clients
of
Bancroft
Capital,
LLC
and
its
affiliates.
Cabrera
Capital
Markets
Shares
are
only
available
to
clients
of
Cabrera
Capital
Markets,
LLC
and
its
affiliates.
Mischler
Financial
Group
Shares
are
only
available
to
clients
of
Mischler
Financial
Group,
Inc.
and
its
affiliates.
Penserra
Shares
are
only
available
to
clients
of
Penserra
Securities
LLC
and
its
affiliates.
Great
Pacific
Shares
are
only
available
to
clients
of
Great
Pacific
Securities
and
its
affiliates.
Investor
A
Shares
bear
certain
expenses
related
to
shareholder
servicing
of
such
shares.
Investor
A
Shares
are
generally
available
through
financial
intermediaries.
Each
class
has
exclusive
voting
rights
with
respect
to
matters
relating
to
its
shareholder
servicing
and
distribution
expenditures.
(a)
If
you
are
no
longer
a
client
of
Bancroft
Capital,
LLC,
you
are
not
eligible
to
hold
Bancroft
Capital
Shares
and
any
Bancroft
Capital
Shares
you
hold
will
be
converted
to
Institutional
Shares
of
the
Fund.
(b)
If
you
are
no
longer
a
client
of
Cabrera
Capital
Markets
LLC,
you
are
not
eligible
to
hold
Cabrera
Capital
Markets
Shares
and
any
Cabrera
Capital
Markets
Shares
you
hold
will
be
converted
to
Institutional
Shares
of
the
Fund.
(c)
If
you
are
no
longer
a
client
of
Great
Pacific
Securities
LLC,
you
are
not
eligible
to
hold
Great
Pacific
Shares
and
any
Great
Pacific
Shares
you
hold
will
be
converted
to
Institutional
Shares
of
the
Fund.
(d)
If
you
are
no
longer
a
client
of
Mischler
Financial
Group,
Inc.,
you
are
not
eligible
to
hold
Mischler
Financial
Group
Shares
and
any
Mischler
Financial
Group
Shares
you
hold
will
be
converted
to
Institutional
Shares
of
the
Fund.
(e)
If
you
are
no
longer
a
client
of
Penserra
Securities
LLC,
you
are
not
eligible
to
hold
Penserra
Shares
and
any
Penserra
Shares
you
hold
will
be
converted
to
Institutional
Shares
of
the
Fund.
The
Fund
prices
and
transacts
its
shares
at
a
net
asset
value
("NAV") per
share
calculated
to
four
decimal
places,
reflecting
market-based
values
of
its
portfolio
holdings
(i.e.,
at
a
“floating”
NAV).
The
Board
of
Trustees
of
the
Trust (the
"Board")
may
impose
a
discretionary
liquidity
fee
of
up
to
2%
upon
the
value
of
shares
redeemed,
if
such
fee
is
determined
to
be
in
the
best
interests
of
such
Fund.
The
Fund,
together
with
certain
other
registered
investment
companies
advised
by
BlackRock
Advisors,
LLC
(the
“Manager”) or
its
affiliates,
is
included
in
a
complex
of
funds
referred
to
as
the BlackRock
Multi-Asset
Complex.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“U.S.
GAAP”),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies:
Investment
Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities,
is
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets.
Distributions:
Distributions
from
net
investment
income
are
declared
daily
and
paid
monthly.
Distributions
of
capital
gains
are
distributed
at
least
annually
and
are
recorded
on
the
ex-dividend
dates.
The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP
.
Discretionary
Liquidity
Fees:
Any
discretionary
liquidity
fees
imposed
on
the
value
of
shares
redeemed
are
recorded
as
paid-in-capital.
The
discretionary liquidity
fees
are
collected
and
retained
by
the
Fund
for
the
benefit
of the
Fund’s
remaining shareholders.
Offering
Costs:
Offering
costs
are
amortized
over
a
12-month
period
beginning
with
the
commencement
of
operations
of
a
class
of
shares.
Share
Class
Initial
Sales
Charge
Contingent
Deferred
Sales
Charge
(“CDSC”)
Conversion
Privilege
Institutional
...............................................
No
No
None
Bancroft
Capital
.............................................
No
No
None
(a)
Cabrera
Capital
Markets
.......................................
No
No
None
(b)
Direct
...................................................
No
No
None
Great
Pacific
...............................................
No
No
None
(c)
Mischler
Financial
Group
.......................................
No
No
None
(d)
Penserra
.................................................
No
No
None
(e)
Investor
A
................................................
No
No
None
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
22
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
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:
Investments
are
valued
on
the
basis
of
prices
provided
by
dealers
or
pricing
services.
In
determining
the
value
of
a
particular
investment,
pricing
services
may
use
certain
information
with
respect
to
transactions
in
such
investments,
quotations
from
dealers,
pricing
matrixes,
market
transactions
in
comparable
investments
and
information
with
respect
to
various
relationships
between
investments.
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.
Repurchase
agreements
are
valued
at
amortized
cost,
which
approximates
market
value.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows:
Level
1
—
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
the
Fund
has
the
ability
to
access;
Level
2
—
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market–corroborated
inputs);
and
Level
3 —
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available
(including
the
Valuation
Committee’s
assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety. 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
Repurchase
Agreements:
Repurchase
agreements
are
commitments
to
purchase
a
security
from
a
counterparty
who
agrees
to
repurchase
the
same
security
at
a
mutually
agreed
upon
date
and
price.
On
a
daily
basis,
the
counterparty
is
required
to
maintain
collateral
subject
to
the
agreement
and
in
value
no
less
than
the
agreed
upon
repurchase
amount.
Repurchase
agreements
may
be
traded
bilaterally,
in
a
tri-party
arrangement
or
may
be
centrally
cleared
through
a
sponsoring
agent.
Subject
to
the
custodial
undertaking
associated
with
a
tri-party
repurchase
arrangement
and
for
centrally
cleared
repurchase
agreements,
a
third-party
custodian
maintains
accounts
to
hold
collateral
for a
fund
and
its
counterparties.
Typically,
a
fund
and
counterparty
are
not
permitted
to
sell,
re-pledge
or
use
the
collateral
absent
a
default
by
the
counterparty
or the
fund,
respectively.
In
the
event
the
counterparty
defaults
and
the
fair
value
of
the
collateral
declines, a
fund
could
experience
losses,
delays
and
costs
in
liquidating
the
collateral.
Repurchase
agreements
are
entered
into
by a
fund
under
Master
Repurchase
Agreements
(each,
an
“MRA”).
The
MRA
permits the
fund,
under
certain
circumstances
including
an
event
of
default
(such
as
bankruptcy
or
insolvency),
to
offset
payables
and/or
receivables
with
collateral
held
by
and/or
posted
to
the
counterparty.
As
a
result,
Notes
to
Financial
Statements
(unaudited)
(continued)
23
Notes
to
Financial
Statements
one
single
net
payment
is
created.
Bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
such
a
right
of
offset
in
the
event
of
the
MRA
counterparty’s
bankruptcy
or
insolvency.
Based
on
the
terms
of
the
MRA, the
fund
receives
collateral
with
a
market
value
in
excess
of
the
repurchase
price
at
maturity.
Upon
a
bankruptcy
or
insolvency
of
the
MRA
counterparty,
the
fund
would
recognize
a
liability
with
respect
to
such
excess
collateral.
The
liability
reflects
the
fund’s
obligation
under
bankruptcy
law
to
return
the
excess
to
the
counterparty.
5.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES
Investment
Advisory:
The
Trust,
on
behalf
of
the
Fund,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Fund’s
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
(“BlackRock”),
to
provide
investment
advisory
services.
The
Manager
is
responsible
for
the
management
of the
Fund’s
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of the
Fund.
For
such
services,
the
Fund
pays
the
Manager
a
monthly
fee
at
an
annual
rate
equal
to
0.10%
of
the
average
daily
value
of
the
Fund's
net
assets.
The
Manager
entered
into
a
sub-advisory
agreement
with
BlackRock
International
Limited
(“BIL”),
(the
“sub-adviser”),
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.
Service
Fees:
The
Trust
,
on behalf
of
the
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,
the
Fund
pays
BRIL
ongoing
service
fees.
The
fees
are
accrued
daily
and
paid
monthly
at
annual
rates
of
0.25%
based
upon
the
average
daily
net
assets
attributable
to
Investor
A
shares.
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
servicing to
the
Fund.
The
ongoing
service fee compensates BRIL
and
each
broker-
dealer
for
providing
shareholder
servicing related
services
to
shareholders.
For
the six
months
ended
January
31,
2024,
the
class
specific
service
fees
borne
directly
by Investor
A Shares
of
the
Fund
were
$1,152.
Administration:
The
Trust,
on
behalf
of
the
Fund,
entered
into
an
Administration
Agreement
with
the
Manager,
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
to
provide
administrative
services.
For
these
services,
the
Manager
receives
an
administration
fee
computed
daily
and
payable
monthly,
based
on
a
percentage
of
the
average
daily
net
assets
of
the
Fund.
The
Manager
charges
each
of
the
share
classes
an
administration
fee,
which
is
shown
as
administration
–
class
specific
in
the
Statement
of
Operations,
at
an
annual
rate
of
0.10%
of
the
average
daily
net
assets
for
Institutional
Shares,
Bancroft
Capital
Shares,
Cabrera
Capital
Markets
Shares,
Great
Pacific
Shares,
Mischler
Financial
Group
Shares,
Penserra
Shares
and Investor
A
Shares
and 0.04%
of
the
average
daily
net
assets
for
Direct
Shares.
For
the
six
months
ended
January
31,
2024, the
following
table
shows
the
class
specific
administration
fees
borne
directly
by
each
share
class
of
the
Fund:
Transfer
Agent:
Pursuant
to
written
agreements,
certain
financial
intermediaries,
some
of
which
may
be
affiliates,
provide
the
Fund
with
sub-accounting,
recordkeeping,
sub-transfer
agency
and
other
administrative
services
with
respect
to
servicing
of
underlying
investor
accounts.
For
these
services,
these
entities
receive
an
asset-based
fee
or
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets.
For
the
six
months ended January
31,
2024,
the
Fund
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
For
the
six
months ended
January
31,
2024,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Expense
Limitations,
Waivers
and
Reimbursements:
The
Manager
contractually
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
Miscellaneous
Other
Expenses
(“expense
limitation”)
through
June
30,
2034.
Miscellaneous
other
expenses
include
accounting,
transfer
agency,
custody,
professional
and
registration
fees
and
exclude
dividend
expense,
interest
expense,
and
certain
other
fund
expenses
that
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of
the
Fund’s
business.
The
expense
limitation
as
a
percentage
of
average
daily
net
assets is
0.00%
for
the
Institutional
Shares,
Bancroft
Capital
Shares,
Cabrera
Capital
Markets
Shares,
Direct
Shares,
Great
Pacific
Shares,
Mischler
Financial
Group
Shares,
Penserra
Shares
and Investor
A
Shares.
For
the six
months,
the
Manager
waived
and/or
reimbursed
$295,809, which
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
The
Manager and
BRIL
have also
voluntarily
agreed
to
waive
a
portion
of
their
respective
investment
advisory
and
service
and
distribution
fees
and/or
reimburse
operating
expenses
to
enable
the
Fund
to
maintain
minimum
levels
of
daily
net
investment
income
if
applicable.
These
amounts,
if
any,
are
reported
in
the
Statement
of
Operations
as
transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific.
The
Manager
and
BRIL may
discontinue
the
waiver
and/or
reimbursement
at
any
time.
Institutional
Bancroft
Capital
Cabrera
Capital
Markets
Direct
Great
Pacific
Mischler
Financial
Group
Penserra
Investor
A
Total
Administration
fees
-
class
specific
......
$
254,573
$
26
$
91
$
150,115
$
254
$
12,618
$
26
$
461
$
418,164
Institutional
Bancroft
Capital
Cabrera
Capital
Markets
Direct
Great
Pacific
Mischler
Financial
Group
Penserra
Investor
A
Total
Transfer
agent
fees
-
class
specific
......
$
370
$
13
$
32
$
46
$
45
$
53
$
14
$
241
$
814
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
24
For
the
six
months ended
January
31,
2024,
class
specific
expense
waivers
and/or
reimbursements are as
follows:
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
“Order”)
from
the
U.S.
Securities
and
Exchange
Commission
(“SEC”),
the
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
“Interfund
Lending
Program”),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by
the
Fund’s
investment
policies
and
restrictions.
The
Fund
is
currently
permitted
to
borrow
and
lend
under
the
Interfund
Lending
Program.
A
lending
BlackRock
fund
may
lend
in
aggregate
up
to
15%
of
its
net
assets
but
may
not
lend
more
than
5%
of
its
net
assets
to
any
one
borrowing
fund
through
the
Interfund
Lending
Program.
A
borrowing
BlackRock
fund
may
not
borrow
through
the
Interfund
Lending
Program
or
from
any
other
source
more
than
33
1/3%
of
its
total
assets
(or
any
lower
threshold
provided
for
by
the fund’s
investment
restrictions).
If
a
borrowing
BlackRock
fund’s
total
outstanding
borrowings
exceed
10%
of
its
total
assets,
each
of
its
outstanding
interfund
loans
will
be
subject
to
collateralization
of
at
least
102%
of
the
outstanding
principal
value
of
the
loan.
All
interfund
loans
are
for
temporary
or
emergency
purposes
and
the
interest
rate
to
be
charged
will
be
the
average
of
the
highest
current
overnight
repurchase
agreement
rate
available
to
a
lending
fund
and
the
bank
loan
rate,
as
calculated
according
to
a
formula
established
by
the
Board.
During the
period
ended
January
31,
2024,
the
Fund
did
not
participate
in
the
Interfund
Lending
Program.
Trustees
and
Officers:
Certain
trustees
and/or
officers
of
the Trust are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Fund
reimburses
the
Manager
for
a
portion
of
the
compensation
paid
to
the
Fund’s
Chief
Compliance
Officer,
which
is
included
in
Trustees and
Officer
in
the
Statement
of
Operations.
6.
INCOME
TAX
INFORMATION
It
is
the
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required.
The
Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
the
Fund’s
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
years
after
they
are
filed.
The
statutes
of
limitations
on
the
Fund’s
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction.
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Fund
as
of
January
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.
7.
PRINCIPAL
RISKS
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Fund
and its
investments.
The
Fund’s
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject.
On
July
12,
2023,
the
SEC
approved
changes
to
money
market
fund
regulations.
These
changes,
among
other
things:
(i)
eliminate
provisions
that
permit
a
money
market
fund
to
suspend
redemptions
except
in
liquidations,
(ii)
require
institutional
prime
and
institutional
tax-exempt
money
market
funds
to
impose
mandatory
liquidity
fees
under
certain
conditions,
(iii)
permit
a
discretionary
liquidity
fee
for
a
non-government
money
market
fund
and
(iv)
increase
minimum
daily
and
weekly
liquidity
for
all
money
market
funds.
These
changes
will
be
implemented
over
the
next
12
months
depending
on
the
change
and
may
affect
the
Fund’s
operations
and
return
potential.
Certain
obligations
held
by
the
Fund
have
a
credit
enhancement
or
liquidity
feature
that
may,
under
certain
circumstances,
provide
for
repayment
of
principal
and
interest
on
the
obligation
when
due. These
enhancements,
which
may
include
letters
of
credit,
stand-by
bond
purchase
agreements
and/or
third-party
insurance,
are
issued
by
financial
institutions. The
value
of
the
obligations
may
be
affected
by
changes
in
creditworthiness
of
the
entities
that
provide
the
credit
enhancements
or
liquidity
features. The
Fund
monitors
its
exposure
by
reviewing
the
creditworthiness
of
the
issuers,
as
well
as
the
financial
institutions
issuing
the
credit
enhancements
and
by
limiting
the
amount
of
holdings
with
credit
enhancements
from
one
financial
institution.
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
Share
Class
Transfer
Agent
Fees
Waived
and/or
Reimbursed
by
the
Manager
-
Class
Specific
Institutional
.......................................................................................................
$
370
Bancroft
Capital
....................................................................................................
13
Cabrera
Capital
Markets
..............................................................................................
32
Direct
...........................................................................................................
46
Great
Pacific
......................................................................................................
45
Mischler
Financial
Group
..............................................................................................
53
Penserra
........................................................................................................
14
Investor
A
........................................................................................................
241
$
814
Notes
to
Financial
Statements
(unaudited)
(continued)
25
Notes
to
Financial
Statements
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.
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.
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(s) may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the period
of
historically
low
interest
rates
that
ended
in
March
2022. The
Federal
Reserve
has
raised
the
federal
funds
rate
as
part
of
its
efforts
to
address
inflation.
There
is
a
risk
that
interest
rates
will
continue
to
rise,
which
will
likely
drive
down
the
prices
of
bonds
and
other
fixed-income
securities,
and
could
negatively
impact
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
of
issuers
located
in
Europe
or
with
significant
exposure
to
European
issuers
or
countries.
The
European
financial
markets
have
recently
experienced
volatility
and
adverse
trends
due
to
concerns
about
economic
downturns
in,
or
rising
government
debt
levels
of,
several
European
countries
as
well
as
acts
of
war
in
the
region.
These
events
may
spread
to
other
countries
in
Europe
and
may
affect
the
value
and
liquidity
of
certain
of
the
Fund’s
investments.
Responses
to
the
financial
problems
by
European
governments,
central
banks
and
others,
including
austerity
measures
and
reforms,
may
not
work,
may
result
in
social
unrest
and
may
limit
future
growth
and
economic
recovery
or
have
other
unintended
consequences.
Further
defaults
or
restructurings
by
governments
and
others
of
their
debt
could
have
additional
adverse
effects
on
economies,
financial
markets
and
asset
valuations
around
the
world.
The
United
Kingdom
has
withdrawn
from
the
European
Union,
and
one
or
more
other
countries
may
withdraw
from
the
European
Union
and/or
abandon
the
Euro,
the
common
currency
of
the
European
Union.
These
events
and
actions
have
adversely
affected,
and
may
in
the
future
adversely
affect,
the
value
and
exchange
rate
of
the
Euro
and
may
continue
to
significantly
affect
the
economies
of
every
country
in
Europe,
including
countries
that
do
not
use
the
Euro
and
non-European
Union
member
states. The
impact
of
these
actions,
especially
if
they
occur
in
a
disorderly
fashion,
is
not
clear
but
could
be
significant
and
far
reaching.
In
addition,
Russia
launched
a
large-scale
invasion
of
Ukraine
on
February
24,
2022.
The
extent
and
duration
of
the
military
action,
resulting
sanctions
and
resulting
future
market
disruptions
in
the
region
are
impossible
to
predict,
but
have
been,
and
may
continue
to
be,
significant
and
have
a
severe
adverse
effect
on
the
region,
including
significant
negative
impacts
on
the
economy
and
the
markets
for
certain
securities
and
commodities,
such
as
oil
and
natural
gas,
as
well
as
other
sectors.
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
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
26
8.
CAPITAL
SHARE
TRANSACTIONS
The
number
of
shares
sold,
reinvested
and
redeemed
for
the
Fund
were
transacted
at
each
class’s
floating
NAV
per
share
calculated
to
four
decimal
places.
Transactions
in
capital
shares
for
each
class
were
as
follows:
9.
SUBSEQUENT
EVENTS
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Fund
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Six
Months
Ended
01/31/24
Year
Ended
07/31/23
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
BlackRock
Liquid
Environmentally
Aware
Fund
Institutional
Shares
sold
.............................................
438,343,739
$
438,480,730
683,802,939
$
683,886,009
Shares
issued
in
reinvestment
of
distributions
........................
11,892,670
11,896,669
16,256,834
16,258,908
Shares
redeemed
.........................................
(482,370,072)
(482,527,598)
(444,693,659)
(444,767,864)
(32,133,663)
$
(32,150,199)
255,366,114
$
255,377,053
Bancroft
Capital
Shares
issued
in
reinvestment
of
distributions
........................
1,415
1,415
2,085
2,085
1,415
$
1,415
2,085
$
2,085
Cabrera
Capital
Markets
Shares
sold
.............................................
1
$
1
124,949
$
124,994
Shares
issued
in
reinvestment
of
distributions
........................
4,884
4,885
5,208
5,208
Shares
redeemed
.........................................
(1)
(1)
—
—
4,884
$
4,885
130,157
$
130,202
Direct
Shares
sold
.............................................
499,849
$
499,980
36,040,097
$
36,043,282
Shares
issued
in
reinvestment
of
distributions
........................
15,013,892
15,019,630
22,287,855
22,291,117
Shares
redeemed
.........................................
(179,481,002)
(179,564,740)
(145,055,297)
(145,042,582)
(163,967,261)
$
(164,045,130)
(86,727,345)
$
(86,708,183)
Great
Pacific
Shares
sold
.............................................
—
$
—
434,985
$
435,001
Shares
issued
in
reinvestment
of
distributions
........................
13,530
13,534
14,407
14,407
13,530
$
13,534
449,392
$
449,408
Mischler
Financial
Group
Shares
sold
.............................................
—
$
—
24,990,003
$
25,000,000
Shares
issued
in
reinvestment
of
distributions
........................
114,294
114,328
2,086
2,086
Shares
redeemed
.........................................
—
—
(9,975,515)
(9,979,653)
114,294
$
114,328
15,016,574
$
15,022,433
Penserra
Shares
issued
in
reinvestment
of
distributions
........................
1,415
1,415
2,086
2,086
1,415
$
1,415
2,086
$
2,086
Investor
A
Shares
sold
and
automatic
conversion
of
shares
.......................
1,362,560
$
1,363,013
1,292,480
$
1,292,316
Shares
issued
in
reinvestment
of
distributions
........................
17,198
17,206
23,398
23,398
Shares
redeemed
.........................................
(1,407,481)
(1,408,068)
(953,833)
(953,973)
(27,723)
$
(27,849)
362,045
$
361,741
(195,993,109)
$
(196,087,601)
184,601,108
$
184,636,825
Additional
Information
27
Additional
Information
Tailored
Shareholder
Reports
for
Open-End Mutual
Funds
and
ETFs
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
online,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Fund.
General
Information
Quarterly
performance,
semi-annual
and
annual
reports,
current
net
asset
value
and
other
information
regarding
the
Fund
may
be
found
on
BlackRock’s
website,
which
can
be
accessed
at
blackrock.com
.
Any
reference
to
BlackRock’s
website
in
this
report
is
intended
to
allow
investors
public
access
to
information
regarding
the
Fund
and
does
not,
and
is
not
intended
to,
incorporate
BlackRock’s
website
in
this
report.
Householding
The
Fund
will
mail
only
one
copy
of
shareholder
documents,
including
prospectuses,
annual
and
semi-annual
reports,
Rule
30e-3
notices
and
proxy
statements,
to
shareholders
with
multiple
accounts
at
the
same
address.
This
practice
is
commonly
called
“householding”
and
is
intended
to
reduce
expenses
and
eliminate
duplicate
mailings
of
shareholder
documents.
Mailings
of
your
shareholder
documents
may
be
householded
indefinitely
unless
you
instruct
us
otherwise.
If
you
do
not
want
the
mailing
of
these
documents
to
be
combined
with
those
for
other
members
of
your
household,
please
call
the
Transfer
Agent at
(800)
441-7762.
Availability
of
Quarterly
Schedule
of
Investments
The
BlackRock
Liquid
Environmentally
Aware
Fund
files
its
complete
schedule
of
portfolio
holdings
with
the
SEC
each
month
on
Form
N-MFP.
The
Fund’s
reports
on
Form
N-MFP
are
available
on
the
SEC’s
website
at
sec.gov
.
The
Fund
makes
portfolio
holdings
available
to
shareholders
on
its
website
at
blackrock.com
.
Availability
of
Proxy
Voting
Policies,
Procedures and
Voting
Records
A
description
of
the
policies
and
procedures
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
information
about
how
the
Fund
voted
proxies
relating
to
securities
held
in
the
Fund's
portfolio
during
the
most
recent
12-month
period
ended
June
30 is
available
without
charge,
upon
request (1)
by
calling
(800)
441-7762
;
(2)
on
the
BlackRock
website
at
blackrock.com
;
and
(3)
on
the
SEC’s
website
at
sec.gov
.
BlackRock
Privacy
Principles
BlackRock
is
committed
to
maintaining
the
privacy
of
its
current
and
former
fund
investors
and
individual
clients
(collectively,
“Clients”)
and
to
safeguarding
their
non-public
personal
information.
The
following
information
is
provided
to
help
you
understand
what
personal
information
BlackRock
collects,
how
we
protect
that
information
and
why
in
certain
cases
we
share
such
information
with
select
parties.
If
you
are
located
in
a
jurisdiction
where
specific
laws,
rules
or
regulations
require
BlackRock
to
provide
you
with
additional
or
different
privacy-related
rights
beyond
what
is
set
forth
below,
then
BlackRock
will
comply
with
those
specific
laws,
rules
or
regulations.
BlackRock
obtains
or
verifies
personal
non-public
information
from
and
about
you
from
different
sources,
including
the
following:
(i)
information
we
receive
from
you
or,
if
applicable,
your
financial
intermediary,
on
applications,
forms
or
other
documents;
(ii)
information
about
your
transactions
with
us,
our
affiliates,
or
others;
(iii)
information
we
receive
from
a
consumer
reporting
agency;
and
(iv)
from
visits
to
our
websites.
BlackRock
does
not
sell
or
disclose
to
non-affiliated
third
parties
any
non-public
personal
information
about
its
Clients,
except
as
permitted
by
law
or
as
is
necessary
to
respond
to
regulatory
requests
or
to
service
Client
accounts.
These
non-affiliated
third
parties
are
required
to
protect
the
confidentiality
and
security
of
this
information
and
to
use
it
only
for
its
intended
purpose.
We
may
share
information
with
our
affiliates
to
service
your
account
or
to
provide
you
with
information
about
other
BlackRock
products
or
services
that
may
be
of
interest
to
you.
In
addition,
BlackRock
restricts
access
to
non-public
personal
information
about
its
Clients
to
those
BlackRock
employees
with
a
legitimate
business
need
for
the
information.
BlackRock
maintains
physical,
electronic
and
procedural
safeguards
that
are
designed
to
protect
the
non-public
personal
information
of
its
Clients,
including
procedures
relating
to
the
proper
storage
and
disposal
of
such
information.
Additional
Information
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
28
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Adviser
BlackRock
International
Limited
Edinburgh,
EH3
8JB
United
Kingdom
Accounting
Agent
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
Transfer
Agent
BNY
Mellon
Investment
Servicing
(US)
Inc.
Wilmington,
DE
19809
Custodians
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
The
Bank
of
New
York
Mellon
New
York,
NY
10286
Independent
Registered
Public
Accounting
Firm
Deloitte
&
Touche
LLP
Boston,
MA
02116
Distributor
BlackRock
Investments,
LLC
New
York,
NY
10001
Legal
Counsel
Sidley
Austin
LLP
New
York,
NY
10019
Address
of
the
Trust
100
Bellevue
Parkway
Wilmington,
DE
19809
Glossary
of
Terms
Used
in
this
Report
29
Glossary
of
Terms
Used
in
this
Report
Currency
Abbreviation
USD
United
States
Dollar
Portfolio
Abbreviation
LOC
Letter
of
Credit
RB
Revenue
Bonds
SBPA
Stand-by-Bond
Purchase
Agreement
SOFR
Secured
Overnight
Financing
Rate
VRDN
Variable
Rate
Demand
Notes
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.
You
could
lose
money
by
investing
in
the
Fund.
Because
the
share
price
of
the
Fund
will
fluctuate,
when
you
sell
your
shares
they
may
be
worth
more
or
less
than
what
you
originally
paid
for
them.
The
Fund
may
impose
a
fee
upon
sale
of
your
shares.
An
investment
in
the
Fund
is
not
a
bank
account
and
is
not
insured
or
guaranteed
by
the
Federal
Deposit
Insurance
Corporation
or
any
other
government
agency.
The
Fund’s
sponsor
is
not
required
to
reimburse
the
Fund
for
losses,
and
you
should
not
expect
that
the
sponsor
will
provide
financial
support
to
the
Fund
at
any
time,
including
during
periods
of
market
stress.
Performance
data
quoted
represents
past
performance
and
does
not
guarantee
future
results.
Total
return
information
assumes
reinvestment
of
all
distributions.
Current
performance
may
be
higher
or
lower
than
the
performance
data
quoted.
For
current
month-end
performance
information,
call
(800)
626-1960.
The
Fund’s
current
7-day
yield
more
closely
reflects
the
current
earnings
of
the
Fund
than
the
total
returns
quoted.
Statements
and
other
information
herein
are
as
dated
and
are
subject
to
change.
LEAF-1/24-SAR
JANUARY
31,
2024
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2024
Semi-Annual
Report
(Unaudited)
BlackRock
Funds
SM
BlackRock
Short
Obligations
Fund
Dear
Shareholder,
The
combination
of
continued
economic
growth
and
cooling
inflation
provided
a
supportive
backdrop
for
investors
during
the
12-month
reporting
period
ended
January
31,
2024.
Significantly
tighter
monetary
policy
helped
to
rein
in
inflation,
and
the
Consumer
Price
Index
decelerated
substantially
in
the
first
half
of
the
period
before
stalling
between
3%
and
4%
in
the
second
half.
A
moderating
labor
market
helped
ease
inflationary
pressure,
although
wages
continued
to
grow.
Wage
and
job
growth
powered
robust
consumer
spending,
backstopping
the
economy.
On
October
7,
2023,
Hamas
launched
a
horrific
attack
on
Israel.
The
ensuing
war
will
have
a
significant
humanitarian
impact
and
could
lead
to
heightened
economic
and
market
volatility.
We
see
geopolitics
as
a
structural
market
risk
going
forward.
See
our
geopolitical
risk
dashboard
at
blackrock.com
for
more
details.
Equity
returns
were
robust
during
the
period,
as
interest
rates
stabilized
and
the
economy
proved
to
be
more
resilient
than
many
investors
expected.
The
U.S.
economy
continued
to
show
strength,
and
growth
further
accelerated
in
the
second
half
of
2023.
Large-capitalization
U.S.
stocks
posted
particularly
substantial
gains,
supported
by
the
performance
of
a
few
notable
technology
companies,
while
small-capitalization
U.S.
stocks
advanced
at
a
significantly
slower
pace.
Meanwhile,
international
developed
market
equities
also
gained,
while
emerging
market
stocks
declined
overall.
The
10-year
U.S.
Treasury
yield
rose
during
the
reporting
period,
driving
its
price
down,
as
investors
reacted
to
elevated
inflation
and
attempted
to
anticipate
future
interest
rate
changes.
However,
shorter-duration
U.S.
Treasuries
gained,
as
higher
yields
boosted
returns.
The
corporate
bond
market
benefited
from
improving
economic
sentiment,
although
high-yield
corporate
bond
prices
fared
significantly
better
than
investment-grade
bonds
as
demand
from
yield-seeking
investors
remained
strong.
The
U.S.
Federal
Reserve
(the
“Fed”),
attempting
to
manage
persistent
inflation,
raised
interest
rates
four
times
during
the
12-month
period,
but
paused
its
tightening
in
the
second
half
of
the
period.
The
Fed
also
wound
down
its
bond-buying
programs
and
incrementally
reduced
its
balance
sheet
by
not
replacing
securities
that
reach
maturity.
Supply
constraints
appear
to
have
become
an
embedded
feature
of
the
new
macroeconomic
environment,
making
it
difficult
for
developed
economies
to
increase
production
without
sparking
higher
inflation.
Geopolitical
fragmentation
and
an
aging
population
risk
further
exacerbating
these
constraints,
keeping
the
labor
market
tight
and
wage
growth
high.
Although
the
Fed
has
stopped
tightening
for
now,
we
believe
that
the
new
economic
regime
means
that
the
Fed
will
need
to
maintain
high
rates
for
an
extended
period
despite
the
market’s
hopes
for
interest
rate
cuts,
as
reflected
in
the
recent
rally.
In
this
new
regime,
we
anticipate
greater
volatility
and
dispersion
of
returns,
creating
more
opportunities
for
selective
portfolio
management.
Looking
at
developed
market
stocks,
we
have
an
overweight
stance
on
U.S.
stocks
overall,
particularly
given
the
promise
of
emerging
AI
technologies.
We
are
also
overweight
Japanese
stocks
as
shareholder-friendly
policies
generate
increased
investor
interest,
although
we
maintain
an
underweight
stance
on
European
stocks.
In
credit,
there
are
selective
opportunities
in
the
near
term
despite
tighter
credit
and
financial
conditions.
For
fixed
income
investing
with
a
six-
to
twelve-month
horizon,
we
see
the
most
attractive
investments
in
short-term
U.S.
Treasuries
and
hard-currency
emerging
market
bonds.
Overall,
our
view
is
that
investors
need
to
think
globally,
position
themselves
to
be
prepared
for
a
decarbonizing
economy,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
blackrock.com
for
further
insight
about
investing
in
today’s
markets.
Sincerely,
Rob
Kapito
President,
BlackRock
Advisors,
LLC
The
Markets
in
Review
Rob
Kapito
President,
BlackRock
Advisors,
LLC
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
January
31,
2024
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
6.43%
20.82%
U.S.
small
cap
equities
(Russell
2000
®
Index)
(2.02)
2.40
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
3.15
10.01
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(6.00)
(2.94)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
2.73
5.13
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
1.74
(0.38)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
3.15
2.10
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
2.70
2.90
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
6.18
9.28
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Semi-Annual
Report:
Fund
Summary
........................................................................................................
4
About
Fund
Performance
..................................................................................................
6
Disclosure
of
Expenses
...................................................................................................
6
Financial
Statements:
Schedule
of
Investments
................................................................................................
7
Statement
of
Assets
and
Liabilities
..........................................................................................
14
Statement
of
Operations
................................................................................................
16
Statements
of
Changes
in
Net
Assets
........................................................................................
17
Financial
Highlights
.....................................................................................................
18
Notes
to
Financial
Statements
...............................................................................................
21
Statement
Regarding
Liquidity
Risk
Management
Program
.............................................................................
28
Additional
Information
....................................................................................................
29
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
31
Fund
Summary
as
of
January
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
4
BlackRock
Short
Obligations
Fund
Investment
Objective
BlackRock
Short
Obligations
Fund’s
(the
“Fund”)
investment
objective
is
to
seek
current
income
consistent
with
preservation
of
capital.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
six-month
period
ended
January
31,
2024,
all
of
the
Fund’s
share
classes
outperformed
its
benchmark,
the
ICE
BofA
6-Month
U.S.
Treasury
Bill
Index.
What
factors
influenced
performance?
The
Fund’s
stance
with
respect
to
overall
portfolio
duration
and
corresponding
interest
rate
sensitivity
proved
additive
to
performance
as
the
Fed
held
its
benchmark
overnight
lending
rate
steady
during
the
reporting
period.
In
addition,
security
selection
aided
relative
return,
most
notably
holdings
of
investment
grade
corporate
bonds.
Managing
investor
flows
in
an
environment
of
shifting
interest
rate
expectations
weighed
on
performance
relative
to
the
benchmark.
The
Fund’s
positioning
along
the
yield
curve
also
detracted
from
relative
performance.
The
Fund’s
cash
position
had
no
material
impact
on
performance.
Describe
recent
portfolio
activity.
After
having
been
positioned
to
capture
higher
reinvestment
rates
entering
the
period,
the
Fund
shifted
to
an
overweight
duration
bias
and
maintained
an
up-in-quality
tilt
as
it
increased
the
allocation
to
investment
grade
corporate
bonds
based
on
attractive
yields.
Describe
portfolio
positioning
at
period
end.
At
period
end,
the
Fund’s
positioning
reflected
the
view
that
the
Fed
is
near
or
at
the
end
of
its
hiking
cycle,
with
an
extended
duration
stance
and
decreased
exposure
to
floating
rate
instruments.
The
Fund
ended
the
period
with
a
31%
allocation
to
floaters,
with
22%
allocated
to
instruments
linked
to
the
secured
overnight
financing
rate
which
reset
daily
and
provide
attractive
income
following
the
Fed’s
interest
rate
hikes.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Performance
Past
performance
is
not
an
indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
Expense
Example
Average
Annual
Total
Returns
(a)(b)
Standardized
30-Day
Yields
(c)
Unsubsidized
30-Day
Yields
(c)
6-Month
Total
Returns
1
Year
5
Years
10
Years
Institutional
.......................................
5.27%
5.15%
2.99%
5.31%
2.08%
1.61%
Investor
A
........................................
5.04
4.91
2.98
5.18
1.87
1.37
Class
K
..........................................
5.34
5.19
3.03
5.39
2.13
1.68
ICE
BofA
6-Month
U.S.
Treasury
Bill
Index
(d)
................
—
—
2.85
5.24
2.06
1.44
(a)
See
“About
Fund
Performance”
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees,
and
how
performance
was
calculated
for
certain
share
classes.
(b)
Under
normal
market
conditions,
the
Fund
will
invest
in
U.S.
dollar-denominated
investment
grade
and
short-term
fixed
and
floating
rate
debt
securities
maturing
in
three
years
or
less
(with
certain
exceptions)
and
will
maintain
a
dollar-weighted
average
maturity
of
180
days
or
less
and
a
dollar-weighted
average
life
of
365
days
or
less.
(c)
The
standardized
30-day
yield
includes
the
effects
of
any
waivers
and/or
reimbursements.
The
unsubsidized
30-day
yield
excludes
the
effects
of
any
waivers
and/or
reimbursements.
(d)
An
unmanaged
index
that
tracks
6-month
U.S.
Treasury
securities.
On
December
1,
2023,
the
Fund
began
to
compare
its
performance
to
the
standard
pricing
time
of
the
ICE
BofA
6-Month
US
Treasury
Bill
Index
(the
“Index”).
Index
data
prior
to
March
1,
2021
is
for
the
Index's
standard
pricing
time
of
3
pm.
Index
data
from
March
1,
2021
through
November
30,
2023
is
for
a
custom
4pm
pricing
variant
of
the
Index.
Index
returns
beginning
on
December
1,
2023
reflect
the
Index's
new
standard
pricing
time
of
4
pm.
The
change
of
the
Index's
standard
pricing
time
from
3
pm
to
4
pm
resulted
in
the
discontinuation
of
the
custom
4pm
pricing
variant
used
from
March
1,
2021
through
November
30,
2023.
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(08/01/23)
Ending
Account
Value
(01/31/24)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(08/01/23)
Ending
Account
Value
(01/31/24)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00
$
1,029.90
$
1.38
$
1,000.00
$
1,023.78
$
1.37
0.27%
Investor
A
................................
1,000.00
1,029.80
2.55
1,000.00
1,022.62
2.54
0.50
Class
K
..................................
1,000.00
1,030.30
1.02
1,000.00
1,024.13
1.02
0.20
(a)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(to
reflect
the
one-half
year
period
shown).
Fund
Summary
as
of
January
31,
2024
(continued)
5
Fund
Summary
BlackRock
Short
Obligations
Fund
See
“Disclosure
of
Expenses”
for
further
information
on
how
expenses
were
calculated.
Portfolio
Information
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
Net
Assets
Corporate
Bonds
....................................
39.6
%
Commercial
Paper
...................................
36.5
Repurchase
Agreements
...............................
8.3
Certificates
of
Deposit
.................................
8.2
Asset-Backed
Securities
...............................
5.0
U.S.
Treasury
Obligations
..............................
1.0
Municipal
Bonds
....................................
0.4
Foreign
Agency
Obligations
.............................
0.2
Money
Market
Funds
.................................
0.0
(a)
Other
Assets
Less
Liabilities
............................
0.8
MATURITY
BREAKDOWN
Percent
of
Net
Assets
1-7
days
..........................................
5.9
%
8-14
days
.........................................
4.6
15-30
days
........................................
4.7
31-60
days
........................................
6.5
61-90
days
........................................
9.7
91-120
days
.......................................
7.2
121-150
days
......................................
7.5
>150
days
........................................
53.9
(a)
Represents
less
than
0.1%
of
the
Fund's
net
assets.
About
Fund
Performance
2024
BlackRock
Semi-Annual
Report
to
Shareholders
6
Institutional and
Class
K
Shares
are
not
subject
to
any
sales
charge.
These
shares
bear
no
ongoing
distribution
or
service
fees
and
are
available
only
to
certain
eligible
investors.
Investor
A
Shares
are
not
subject
to
any
sales
charge
and
bear
no
ongoing
distribution
fee.
These
shares
are
subject
to
an
ongoing
service
fee
of
0.25
%
per
year.
Certain
redemptions
of
these
shares
may
be
subject
to
a
contingent
deferred
sales
charge
("CDSC")
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase.
These
shares
are
generally
available
through
financial
intermediaries.
Investor
A
Shares
performance
shown
prior
to
the
Investor
A
Shares
inception
date
of
March
9,
2018
is
that
of
Class
K
Shares
(which
have
no
distribution
or
service
fees)
and
was
restated
to
reflect
Investor
A
Shares
fees.
Past
performance
is
not
an
indication
of
future
results.
Financial
markets
have
experienced
extreme
volatility
and
trading
in
many
instruments
has
been
disrupted.
These
circumstances
may
continue
for
an
extended
period
of
time
and
may
continue
to
affect
adversely
the
value
and
liquidity
of
the
Fund’s
investments.
As
a
result,
current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Refer
to
blackrock.com
to
obtain
performance
data
current
to
the
most
recent
month-end.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Figures
shown
in
the
performance
table(s) assume
reinvestment
of
all
distributions,
if
any,
at
net
asset
value
(“NAV”)
on
the
ex-dividend
date
or
payable
date,
as
applicable.
Investment
return
and
principal
value
of
shares
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Distributions
paid
to
each
class
of
shares
will
vary
because
of
the
different
levels
of
service,
distribution
and
transfer
agency
fees
applicable
to
each
class,
which
are
deducted
from
the
income
available
to
be
paid
to
shareholders.
BlackRock
Advisors,
LLC
(the
“Manager”),
the
Fund’s
investment
adviser,
has
contractually
and/or
voluntarily
agreed
to
waive
and/or
reimburse
a
portion
of
the
Fund’s
expenses.
Without
such
waiver(s)
and/or
reimbursement(s),
the
Fund’s
performance
would
have
been
lower.
With
respect
to
the
Fund’s
voluntary
waiver(s),
if
any,
the
Manager
is
under
no
obligation
to
waive
and/or
reimburse
or
to
continue
waiving
and/or
reimbursing
its
fees
and
such
voluntary
waiver(s)
may
be
reduced
or
discontinued
at
any
time.
With
respect
to
the
Fund’s
contractual
waiver(s),
if
any,
the
Manager
is
under
no
obligation
to
continue
waiving
and/or
reimbursing
its
fees
after
the
applicable
termination
date
of
such
agreement.
See
the
Notes
to
Financial
Statements
for
additional
information
on
waivers
and/or
reimbursements.
The
standardized
30-day
yield
includes
the
effects
of
any
waivers
and/or
reimbursements.
The
unsubsidized
30-day
yield
excludes
the
effects
of
any
waivers
and/or
reimbursements.
Disclosure
of
Expenses
Shareholders
of
the
Fund
may
incur
the
following
charges:
(a)
transactional
expenses;
and
(b)
operating
expenses,
including
investment
advisory
fees, administration
fees,
service
and
distribution
fees,
including
12b-1
fees,
fund
fees
and
expenses, and
other
fund
expenses.
The
expense
example
shown
(which
is
based
on
a
hypothetical
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
through
the
end
of
the
period)
is
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in
the
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
mutual
funds.
The
expense
example
provides
information
about
actual
account
values
and
actual
expenses.
Annualized
expense
ratios
reflect
contractual
and
voluntary
fee
waivers,
if
any.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their share
class
under
the
heading
entitled
“Expenses
Paid
During
the
Period.”
The
expense
example
also
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the
ongoing
expenses
of
investing
in
the
Fund
and
other
funds,
compare
the
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
shareholder
reports
of
other
funds.
The
expenses
shown
in
the
expense
example
are
intended
to
highlight
shareholders’
ongoing
costs
only
and
do
not
reflect
transactional
expenses,
such
as
sales
charges,
if
any.
Therefore,
the
hypothetical
example is
useful
in
comparing
ongoing
expenses
only
and
will
not
help
shareholders
determine
the
relative
total
expenses
of
owning
different
funds.
If
these
transactional
expenses
were
included,
shareholder
expenses
would
have
been
higher.
Schedule
of
Investments
(unaudited)
January
31,
2024
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
7
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
American
Express
Credit
Account
Master
Trust,
Series
2022-4,
Class
A,
4.95%,
10/15/27
..
USD
5,000
$
5,018,258
BMW
Vehicle
Lease
Trust,
Series
2023-1,
Class
A2,
5.27%,
02/25/25
...............
627
626,989
CarMax
Auto
Owner
Trust
Series
2022-4,
Class
A2A,
5.34%,
12/15/25
1,709
1,706,989
Series
2023-1,
Class
A2A,
5.23%,
01/15/26
2,701
2,696,962
Series
2023-2,
Class
A2B,
(SOFR
30
day
Average
+
0.85%),
6.20%,
06/15/26
(a)
..
3,529
3,534,932
Series
2023-3,
Class
A2B,
(SOFR
30
day
Average
+
0.60%),
5.95%,
11/16/26
(a)
..
2,707
2,711,331
Series
2023-4,
Class
A2A,
6.08%,
12/15/26
2,703
2,721,795
Chase
Issuance
Trust,
Series
2022-A1,
Class
A,
3.97%,
09/15/27
................
4,700
4,641,508
Citibank
Credit
Card
Issuance
Trust,
Series
2023-A1,
Class
A1,
5.23%,
12/08/27
.....
1,379
1,392,317
CNH
Equipment
Trust,
Series
2023-A,
Class
A2,
5.34%,
09/15/26
...............
1,958
1,956,540
Ford
Credit
Auto
Lease
Trust
Series
2023-A,
Class
A2A,
5.19%,
06/15/25
505
503,963
Series
2023-B,
Class
A2A,
5.90%,
02/15/26
1,537
1,541,672
Ford
Credit
Auto
Owner
Trust,
Series
2022-B,
Class
A2A,
3.44%,
02/15/25
..........
101
100,900
Honda
Auto
Receivables
Owner
Trust,
Series
2023-2,
Class
A2,
5.41%,
04/15/26
......
3,744
3,743,541
Hyundai
Auto
Lease
Securitization
Trust
(b)
Series
2022-C,
Class
A2A,
4.34%,
01/15/25
219
218,445
Series
2023-A,
Class
A2A,
5.20%,
04/15/25
1,564
1,562,489
Series
2023-B,
Class
A2A,
5.47%,
09/15/25
1,487
1,485,427
Series
2023-B,
Class
A2B,
(SOFR
30
day
Average
+
0.75%),
6.10%,
09/15/25
(a)
..
1,607
1,608,536
Mercedes-Benz
Auto
Lease
Trust,
Series
2023-
A,
Class
A2,
5.24%,
11/17/25
..........
6,537
6,530,292
Mercedes-Benz
Auto
Receivables
Trust,
Series
2023-2,
Class
A2,
5.92%,
11/16/26
......
2,072
2,085,554
Nissan
Auto
Receivables
Owner
Trust
Series
2022-B,
Class
A2,
4.50%,
08/15/25
.
1,489
1,485,614
Series
2023-A,
Class
A2B,
(SOFR
30
day
Average
+
0.65%),
6.00%,
02/17/26
(a)
..
5,049
5,054,574
Toyota
Auto
Receivables
Owner
Trust
Series
2023-B,
Class
A2A,
5.28%,
05/15/26
2,873
2,869,381
Series
2023-B,
Class
A2B,
(SOFR
30
day
Average
at
0.52%
Floor
+
0.52%),
5.87%,
05/15/26
(a)
....................
2,733
2,734,745
Series
2024-A,
Class
A2B,
(SOFR
30
day
Average
+
0.35%),
5.69%,
12/15/26
(a)
..
4,659
4,659,888
Total
Asset-Backed
Securities
—
5
.0
%
(Cost:
$
63,186,290
)
...............................
63,192,642
Corporate
Bonds
Aerospace
&
Defense
—
0.3%
Lockheed
Martin
Corp.,
4.95%,
10/15/25
...
2,220
2,231,241
RTX
Corp.,
5.00%,
02/27/26
...........
1,595
1,602,755
3,833,996
Automobiles
—
3.8%
(b)
BMW
US
Capital
LLC
(a)
(SOFR
Index
+
0.53%),
5.87%
,
04/01/24
.
15,615
15,623,120
(SOFR
Index
+
0.38%),
5.76%
,
08/12/24
.
17,735
17,735,898
Hyundai
Capital
America,
5.25%,
01/08/27
..
2,625
2,645,672
Mercedes-Benz
Finance
North
America
LLC
5.38%
,
08/01/25
..................
3,330
3,360,980
4.90%
,
01/09/26
..................
3,150
3,158,268
Security
Par
(000)
Par
(000)
Value
Automobiles
(continued)
Volkswagen
Group
of
America
Finance
LLC,
(1-day
SOFR
+
0.95%),
6.30%,
06/07/24
(a)
.
USD
5,140
$
5,145,662
47,669,600
Banks
—
14.9%
Australia
&
New
Zealand
Banking
Group
Ltd.,
5.09%,
12/08/25
.................
3,245
3,267,522
Banco
Santander
SA
3.89%
,
05/24/24
..................
6,800
6,767,404
2.71%
,
06/27/24
..................
1,200
1,186,857
(1Y
CMT
+
0.45%),
5.77%
,
06/30/24
(a)
...
6,800
6,804,028
Bank
of
America
Corp.,
(1-day
SOFR
+
0.41%),
5.77%,
06/14/24
(a)
................
15,915
15,908,029
Banque
Federative
du
Credit
Mutuel
SA
(b)
4.94%
,
01/26/26
..................
4,800
4,790,178
5.09%
,
01/23/27
..................
3,140
3,163,360
BPCE
SA
(b)
5.10%
,
01/26/26
..................
3,140
3,148,024
5.20%
,
01/18/27
..................
2,010
2,025,433
Citigroup,
Inc.,
(1-day
SOFR
+
1.37%),
4.14%,
05/24/25
(a)
.....................
2,025
2,014,907
Cooperatieve
Rabobank
UA,
3.88%,
08/22/24
6,100
6,050,388
JPMorgan
Chase
&
Co.,
(1-day
SOFR
+
0.98%),
3.85%,
06/14/25
(a)
...........
6,600
6,549,392
KeyBank
NA
(SOFR
Index
+
0.32%),
5.67%
,
06/14/24
(a)
14,355
14,263,039
(SOFR
Index
+
0.32%),
5.67%
,
06/14/24
(a)
6,000
5,963,496
4.15%
,
08/08/25
..................
2,050
2,004,537
Mitsubishi
UFJ
Financial
Group,
Inc.
(a)
(1-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
1.70%),
4.79%
,
07/18/25
.....................
9,410
9,370,163
(1-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
1.55%),
5.06%
,
09/12/25
.....................
5,895
5,877,651
(1-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
1.08%),
5.72%
,
02/20/26
.....................
3,600
3,614,009
National
Australia
Bank
Ltd.
5.20%
,
05/13/25
..................
3,140
3,156,283
4.75%
,
12/10/25
..................
2,160
2,163,249
(1-day
SOFR
+
0.55%),
5.87%
,
01/29/26
(a)
(b)
5,150
5,154,133
Nordea
Bank
Abp
(b)
3.60%
,
06/06/25
..................
4,425
4,349,672
4.75%
,
09/22/25
..................
6,100
6,083,470
PNC
Financial
Services
Group,
Inc.
(The),
(SOFR
Index
+
1.09%),
5.67%,
10/28/25
(a)
.
5,450
5,448,048
Societe
Generale
SA,
4.35%,
06/13/25
(b)
....
5,000
4,953,023
Sumitomo
Mitsui
Financial
Group,
Inc.,
5.46%,
01/13/26
......................
4,800
4,849,735
Sumitomo
Mitsui
Trust
Bank
Ltd.
(b)
0.80%
,
09/16/24
..................
8,000
7,770,579
(1-day
SOFR
+
0.44%),
5.79%
,
09/16/24
(a)
10,000
9,993,857
Svenska
Handelsbanken
AB
(b)
0.55%
,
06/11/24
..................
1,010
992,450
3.65%
,
06/10/25
..................
6,600
6,494,372
Wells
Fargo
Bank
NA
5.55%
,
08/01/25
..................
3,340
3,374,986
4.81%
,
01/15/26
..................
3,150
3,155,794
Westpac
Banking
Corp.
5.35%
,
10/18/24
..................
5,500
5,505,599
1.02%
,
11/18/24
..................
2,395
2,319,239
(1-day
SOFR
+
0.30%),
5.68%
,
11/18/24
(a)
8,985
8,985,701
187,518,607
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
January
31,
2024
BlackRock
Short
Obligations
Fund
8
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Broadline
Retail
—
0.4%
eBay,
Inc.,
5.90%,
11/22/25
............
USD
5,500
$
5,589,695
Capital
Markets
—
3.5%
Credit
Suisse
AG
0.50%
,
02/02/24
..................
2,670
2,670,000
(SOFR
Index
+
0.39%),
5.77%
,
02/02/24
(a)
15,000
15,000,000
Deutsche
Bank
AG,
4.16%,
05/13/25
......
3,900
3,855,084
Macquarie
Bank
Ltd.,
5.39%,
12/07/26
(b)
....
1,990
2,013,865
National
Securities
Clearing
Corp.,
5.15%,
05/30/25
(b)
.....................
1,230
1,236,666
UBS
AG
(b)
(1-day
SOFR
+
0.36%),
5.74%
,
02/09/24
(a)
5,000
5,000,000
0.70%
,
08/09/24
..................
3,680
3,588,221
(1-day
SOFR
+
0.45%),
5.83%
,
08/09/24
(a)
6,775
6,780,230
1.38%
,
01/13/25
..................
4,430
4,269,940
44,414,006
Chemicals
—
0.2%
Sherwin-Williams
Co.
(The),
4.05%,
08/08/24
.
2,775
2,755,704
Consumer
Finance
—
3.0%
American
Express
Co.,
3.38%,
05/03/24
....
2,695
2,679,743
Capital
One
Financial
Corp.,
(1-day
SOFR
+
1.37%),
4.17%,
05/09/25
(a)
...........
6,800
6,769,586
Caterpillar
Financial
Services
Corp.,
(1-day
SOFR
+
0.27%),
5.62%,
09/13/24
(a)
.....
12,325
12,330,440
John
Deere
Capital
Corp.,
3.40%,
06/06/25
..
4,310
4,242,080
PACCAR
Financial
Corp.,
3.15%,
06/13/24
..
2,955
2,931,273
Toyota
Motor
Credit
Corp.
(1-day
SOFR
+
0.62%),
5.93%
,
06/13/24
(a)
3,635
3,638,675
4.40%
,
09/20/24
..................
5,000
4,973,142
37,564,939
Consumer
Staples
Distribution
&
Retail
—
0.6%
Walmart,
Inc.,
3.90%,
09/09/25
.........
7,000
6,937,198
Electric
Utilities
—
0.7%
Florida
Power
&
Light
Co.,
4.45%,
05/15/26
..
1,915
1,914,890
NextEra
Energy
Capital
Holdings,
Inc.
6.05%
,
03/01/25
..................
915
922,712
(SOFR
Index
+
0.76%),
6.07%
,
01/29/26
(a)
3,130
3,133,412
Wisconsin
Public
Service
Corp.,
5.35%,
11/10/25
......................
2,720
2,747,221
8,718,235
Electronic
Equipment,
Instruments
&
Components
—
0.1%
Amphenol
Corp.,
4.75%,
03/30/26
........
750
751,478
Financial
Services
—
2.2%
JPMorgan
Chase
Bank
NA,
5.11%,
12/08/26
.
3,030
3,068,736
National
Rural
Utilities
Cooperative
Finance
Corp.,
Series
D,
(1-day
SOFR
+
0.33%),
5.65%,
10/18/24
(a)
................
5,000
4,996,898
NTT
Finance
Corp.,
4.14%,
07/26/24
(b)
.....
1,120
1,112,610
Siemens
Financieringsmaatschappij
NV,
(1-day
SOFR
+
0.43%),
5.79%,
03/11/24
(a)
(b)
....
18,980
18,982,744
28,160,988
Food
Products
—
0.9%
(b)
Cargill,
Inc.,
4.88%,
10/10/25
...........
5,185
5,205,629
Nestle
Holdings,
Inc.,
4.00%,
09/12/25
.....
6,200
6,148,448
11,354,077
Health
Care
Providers
&
Services
—
0.5%
UnitedHealth
Group,
Inc.,
5.00%,
10/15/24
..
6,000
5,989,443
Hotels,
Restaurants
&
Leisure
—
0.3%
Starbucks
Corp.,
(SOFR
Index
+
0.42%),
5.80%,
02/14/24
(a)
................
3,490
3,490,119
Security
Par
(000)
Par
(000)
Value
Insurance
—
2.4%
(b)
MassMutual
Global
Funding
II,
4.15%,
08/26/25
USD
2,238
$
2,218,413
New
York
Life
Global
Funding
3.15%
,
06/06/24
..................
3,360
3,333,558
(1-day
SOFR
+
0.70%),
6.05%
,
06/13/25
(a)
3,700
3,713,199
3.60%
,
08/05/25
..................
6,200
6,105,821
Northwestern
Mutual
Global
Funding,
4.00%,
07/01/25
......................
6,400
6,332,592
Pacific
Life
Global
Funding
II,
(SOFR
Index
+
0.86%),
6.21%,
06/16/25
(a)
...........
3,515
3,522,368
Principal
Life
Global
Funding
II
0.75%
,
08/23/24
..................
705
687,463
(1-day
SOFR
+
0.38%),
5.75%
,
08/23/24
(a)
680
679,851
Protective
Life
Global
Funding,
4.99%,
01/12/27
3,150
3,168,380
29,761,645
Machinery
—
0.4%
Daimler
Truck
Finance
North
America
LLC
(b)
5.20%
,
01/17/25
..................
2,545
2,544,458
5.00%
,
01/15/27
..................
2,260
2,272,745
4,817,203
Media
—
0.1%
Comcast
Corp.,
5.25%,
11/07/25
........
1,000
1,011,442
Multi-Utilities
—
0.2%
WEC
Energy
Group,
Inc.,
5.00%,
09/27/25
..
2,560
2,560,093
Oil,
Gas
&
Consumable
Fuels
—
2.2%
Enbridge,
Inc.,
(SOFR
Index
+
0.63%),
6.00%,
02/16/24
(a)
.....................
5,520
5,520,578
TransCanada
PipeLines
Ltd.,
1.00%,
10/12/24
22,930
22,224,472
27,745,050
Pharmaceuticals
—
1.0%
Pfizer
Investment
Enterprises
Pte.
Ltd.,
4.65%,
05/19/25
......................
7,600
7,584,192
Roche
Holdings,
Inc.,
(1-day
SOFR
+
0.24%),
5.61%,
03/05/24
(a)
(b)
...............
5,370
5,370,013
12,954,205
Semiconductors
&
Semiconductor
Equipment
—
0.6%
Analog
Devices,
Inc.,
(SOFR
Index
+
0.25%),
5.59%,
10/01/24
(a)
................
7,055
7,053,372
Specialty
Retail
—
0.6%
Home
Depot,
Inc.
(The),
4.00%,
09/15/25
...
1,910
1,893,747
Lowe's
Cos.,
Inc.
4.40%
,
09/08/25
..................
4,150
4,124,124
4.80%
,
04/01/26
..................
1,760
1,762,026
7,779,897
Technology
Hardware,
Storage
&
Peripherals
—
0.3%
Hewlett
Packard
Enterprise
Co.,
5.90%,
10/01/24
......................
3,600
3,604,803
Tobacco
—
0.4%
Philip
Morris
International,
Inc.,
5.13%,
11/15/24
5,000
4,994,241
Total
Corporate
Bonds
—
39
.6
%
(Cost:
$
498,917,625
)
..............................
497,030,036
Foreign
Agency
Obligations
Canada
—
0.2%
CDP
Financial,
Inc.
,
4.50%
,
02/13/26
(b)
.....
2,523
2,522,686
Total
Foreign
Agency
Obligations
—
0
.2
%
(Cost:
$
2,518,927
)
...............................
2,522,686
Schedule
of
Investments
(unaudited)
(continued)
January
31,
2024
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
9
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Municipal
Bonds
Illinois
—
0
.1
%
State
of
Illinois
,
Series
2023A
,
GO
,
5.25
%
,
05/01/25
..................
USD
1,485
$
1,491,478
Other
—
0
.3
%
Taxable
Municipal
Funding
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates,
Various
States
(b)(c)(d)
Series
2020-BTMFT-003
,
RB
,
VRDN
(
Barclays
Bank
plc
LOC
),
5.60
%
,
01/16/25
................
700
700,000
Series
2020-11
,
RB
,
VRDN
(
Barclays
Bank
plc
LOC
),
5.60
%
,
02/01/24
.........
2,220
2,220,000
2,920,000
Total
Municipal
Bonds
—
0
.4
%
(Cost:
$
4,405,000
)
...............................
4,411,478
U.S.
Treasury
Obligations
U.S.
Treasury
Notes
4.75
%
,
07/31/25
..................
6,220
6,249,156
5.00
%
,
08/31/25
-
09/30/25
...........
6,020
6,078,896
Total
U.S.
Treasury
Obligations
—
1
.0
%
(Cost:
$
12,188,083
)
...............................
12,328,052
Total
Long-Term
Investments
—
46.2%
(Cost:
$
581,215,925
)
..............................
579,484,894
Short-Term
Securities
Certificates
of
Deposit
—
8.2%
Domestic
—
0.9%
Bank
of
America
NA
,
5.90
%
,
05/14/24
......
6,530
6,536,123
Citibank
NA
,
5.88
%
,
05/08/24
...........
4,490
4,494,260
11,030,383
Yankee
—
7.3%
(e)
Bank
of
Montreal,
Chicago
5.82
%
,
04/01/24
..................
7,990
7,994,149
5.41
%
,
05/17/24
..................
7,600
7,595,447
Barclays
Bank
plc,
New
York
,
5.55
%
,
02/07/24
4,600
4,599,924
BNP
Paribas
SA,
New
York
,
5.82
%
,
02/01/24
.
4,800
4,800,047
Canadian
Imperial
Bank
of
Commerce,
New
York
5.40
%
,
02/08/24
..................
4,000
3,999,871
5.80
%
,
06/07/24
..................
3,760
3,762,299
(1-day
SOFR
+
0.64%),
5.95
%
,
07/22/24
(a)
.
4,500
4,510,999
5.96
%
,
09/20/24
..................
6,000
6,024,838
Commonwealth
Bank
of
Australia,
New
York
,
5.70
%
,
11/19/24
..................
3,870
3,888,821
Cooperatieve
Rabobank
UA,
New
York
,
5.18
%
,
02/01/24
..................
5,000
4,997,095
DZ
Bank
AG,
New
York
,
5.75
%
,
06/13/24
....
8,500
8,511,866
National
Australia
Bank
Ltd.,
New
York
,
(1-day
SOFR
+
0.52%),
5.83
%
,
04/26/24
(a)
.....
3,970
3,974,129
Royal
Bank
of
Canada,
New
York
5.88
%
,
06/27/24
..................
2,180
2,182,979
5.96
%
,
09/19/24
..................
7,250
7,278,158
Toronto-Dominion
Bank
(The),
New
York
5.52
%
,
02/22/24
..................
4,000
3,999,973
Security
Par
(000)
Par
(000)
Value
Yankee
(continued)
6.00
%
,
08/26/24
-
10/02/24
...........
USD
13,480
$
13,540,956
91,661,551
Total
Certificates
of
Deposit
—
8
.2
%
(Cost:
$
102,520,113
)
..............................
102,691,934
Commercial
Paper
—
36.5%
Amcor
Finance
USA,
Inc.
,
5.61%
,
02/09/24
(b)
(f)
3,000
2,995,918
Amcor
Flexibles
North
America,
Inc.
(f)
5.63%
,
02/05/24
..................
4,000
3,996,974
5.61%
,
02/09/24
(b)
.................
6,000
5,991,761
5.66%
,
03/08/24
..................
12,140
12,069,250
American
Electric
Power
Co.,
Inc.
(b)(f)
5.61%
,
03/04/24
..................
3,000
2,984,650
5.63%
,
03/13/24
..................
1,750
1,738,591
American
Honda
Finance
Corp.
5.85%
,
02/13/24
..................
3,500
3,493,126
5.75%
,
02/26/24
(f)
.................
9,880
9,840,445
5.71%
,
04/11/24
(b)
(f)
................
4,250
4,203,039
5.69%
,
04/16/24
(b)
.................
5,750
5,682,030
ANZ
New
Zealand
Int'l
Ltd.
,
5.90%
,
06/17/24
(b)
(f)
7,250
7,103,910
Australia
&
New
Zealand
Banking
Group
Ltd.
,
5.62%
,
07/01/24
(b)
(f)
................
12,260
11,989,955
Banco
Santander
International
SA
,
0.00%
,
08/29/24
(g)
......................
3,180
3,084,661
BASF
SE
,
5.60%
,
03/28/24
(b)
............
10,750
10,658,275
Bay
Square
Funding
LLC
,
5.40%
,
04/02/24
(b)
(f)
6,000
5,944,503
Bell
Telephone
Co.
of
Canada
or
Bell
Canada
(The)
,
5.78%
,
05/03/24
(b)
(f)
............
9,750
9,612,663
BPCE
SA
,
5.93%
,
05/28/24
(b)
(f)
...........
12,850
12,625,447
Brookfield
Renewable
Energy
LP
,
5.85%
,
02/06/24
(f)
.......................
1,500
1,498,643
Cabot
Trail
Funding
LLC
,
5.40%
,
04/23/24
(b)
..
7,050
6,961,778
Caisse
des
Depots
et
Consignations
,
5.38%
,
04/16/24
(b)
(f)
......................
6,850
6,771,891
CDP
Financial,
Inc.
,
5.35%
,
02/23/24
(b)
(f)
....
7,000
6,976,146
Columbia
Funding
Co.
LLC
,
5.45%
,
04/17/24
(f)
3,500
3,459,468
Commonwealth
Bank
of
Australia
,
(1-day
SOFR
+
0.50%),
5.81%
,
03/18/24
(a)
(b)
.........
3,700
3,701,953
CVS
Health
Corp.
,
5.42%
,
02/01/24
(b)
(f)
.....
9,000
8,998,652
DNB
Bank
ASA
(b)(f)
5.90%
,
06/13/24
..................
12,550
12,307,848
5.54%
,
12/05/24
..................
5,390
5,164,929
Duke
Energy
Corp.
,
5.56%
,
04/16/24
(b)
(f)
....
7,500
7,411,249
Fidelity
National
Information
Services,
Inc.
,
5.59%
,
02/06/24
(b)
(f)
................
6,000
5,994,571
General
Dynamics
Corp.
,
5.50%
,
02/07/24
(f)
..
1,970
1,967,951
HSBC
USA,
Inc.
(f)
6.29%
,
11/27/24
(b)
.................
3,800
3,629,952
5.55%
,
01/21/25
..................
7,630
7,231,280
Hyundai
Capital
America
(f)
5.62%
,
02/22/24
(b)
.................
3,000
2,989,921
5.60%
,
03/12/24
..................
5,000
4,968,229
Intercontinental
Exchange,
Inc.
(b)
5.60%
,
02/02/24
(f)
.................
4,000
3,998,736
5.59%
,
02/07/24
(f)
.................
4,000
3,995,572
5.55%
,
02/09/24
(f)
.................
6,700
6,690,466
5.58%
,
02/13/24
..................
2,000
1,995,890
5.55%
,
02/21/24
(f)
.................
4,500
4,485,069
5.58%
,
02/23/24
(f)
.................
5,750
5,729,110
Jupiter
Securitization
Co.
LLC
,
5.44%
,
04/18/24
(b)
......................
15,000
14,825,670
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
January
31,
2024
BlackRock
Short
Obligations
Fund
10
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Commercial
Paper
(continued)
Keurig
Dr
Pepper,
Inc.
(b)
5.53%
,
02/13/24
..................
USD
3,250
$
3,243,584
5.62%
,
03/27/24
(f)
.................
2,750
2,726,136
5.62%
,
03/28/24
..................
8,280
8,206,859
Korea
Development
Bank
,
5.38%
,
07/16/24
(f)
.
4,500
4,393,225
Lime
Funding
LLC
,
5.42%
,
06/28/24
(b)
......
7,200
7,043,584
LSEGA
Financing
plc
(f)
5.73%
,
02/21/24
..................
2,500
2,492,064
5.63%
,
04/11/24
..................
4,000
3,956,377
5.60%
,
04/12/24
(b)
.................
2,000
1,977,896
LVMH
Moet
Hennessy
Louis
Vuitton
SE
,
5.81%
,
05/23/24
(b)
(f)
......................
1,951
1,918,796
Macquarie
Bank
Ltd.
(b)(f)
5.55%
,
02/12/24
..................
5,000
4,991,026
5.95%
,
05/16/24
..................
4,780
4,703,145
5.79%
,
11/27/24
..................
3,430
3,287,436
Marriott
International,
Inc.
,
5.64%
,
02/15/24
(f)
.
2,250
2,244,767
Microchip
Technology,
Inc.
,
5.60%
,
02/09/24
(b)
6,000
5,991,614
Mitsubishi
Corp.
Americas
,
5.43%
,
03/14/24
(b)
(f)
3,680
3,656,446
National
Bank
of
Canada
(b)
5.78%
,
02/23/24
(f)
.................
9,130
9,098,829
5.70%
,
05/24/24
(f)
.................
5,940
5,839,716
5.85%
,
11/06/24
..................
8,040
7,728,522
NatWest
Markets
plc
,
5.91%
,
05/20/24
(b)
(f)
...
3,370
3,313,767
Penske
Truck
Leasing
Co.
LP
(f)
5.57%
,
02/15/24
..................
5,500
5,487,169
5.57%
,
02/16/24
(b)
.................
750
748,132
Royal
Bank
of
Canada
,
5.80%
,
11/06/24
(f)
...
8,950
8,603,731
Sanofi
SA
,
5.66%
,
04/08/24
(b)
(f)
...........
9,877
9,777,585
Societe
Generale
SA
,
5.35%
,
10/02/24
(b)
....
10,400
10,045,214
Spire,
Inc.
,
5.50%
,
02/01/24
(b)
(f)
...........
2,250
2,249,661
Suncorp-Metway
Ltd.
(b)
5.90%
,
04/29/24
(f)
.................
9,650
9,515,924
5.82%
,
05/08/24
..................
12,100
11,915,288
Security
Par
(000)
Par
(000)
Value
Commercial
Paper
(continued)
5.72%
,
05/28/24
(f)
.................
USD
3,000
$
2,945,167
Svenska
Handelsbanken
AB
,
5.85%
,
08/09/24
(f)
8,750
8,512,299
Victory
Receivables
Corp.
,
5.43%
,
04/17/24
(b)
(f)
5,500
5,436,894
Volvo
Treasury
North
America
LP
(b)
5.45%
,
04/22/24
(f)
.................
2,250
2,221,263
5.45%
,
04/25/24
..................
6,270
6,186,973
Vulcan
Materials
Co.
(f)
5.49%
,
02/01/24
(b)
.................
4,750
4,749,282
5.48%
,
02/06/24
..................
3,650
3,646,686
5.48%
,
02/08/24
..................
9,500
9,488,483
VW
Credit,
Inc.
(b)(f)
5.64%
,
03/07/24
..................
3,000
2,983,248
5.68%
,
03/18/24
..................
4,310
4,278,538
6.02%
,
05/21/24
..................
10,630
10,447,196
Westpac
Banking
Corp.
,
5.71%
,
11/07/24
(f)
...
6,870
6,607,413
Total
Commercial
Paper
—
36
.5
%
(Cost:
$
458,235,355
)
..............................
458,430,107
Shares
Shares
Money
Market
Funds
—
0.0%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
,
5.21
%
(h)
(i)
..................
299,096
299,096
Total
Money
Market
Funds
—
0
.0
%
(Cost:
$
299,096
)
.................................
299,096
Total
Repurchase
Agreements
—
8
.3
%
(Cost:
$
104,000,000
)
..............................
104,000,000
Total
Short-Term
Securities
—
53.0%
(Cost:
$
665,054,564
)
..............................
665,421,137
Total
Investments
—
99
.2
%
(Cost:
$
1,246,270,489
)
............................
1,244,906,031
Other
Assets
Less
Liabilities
—
0.8
%
....................
9,612,441
Net
Assets
—
100.0%
...............................
$
1,254,518,472
(a)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(b)
Security
exempt
from
registration
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933,
as
amended.
These
securities
may
be
resold
in
transactions
exempt
from
registration
to
qualified
institutional
investors.
(c)
These
securities
are
short-term
floating
rate
certificates
issued
by
tender
option
bond
trusts
and
are
secured
by
the
underlying
municipal
bond
securities.
(d)
Variable
rate
security.
Rate
as
of
period
end
and
maturity
is
the
date
the
principal
owed
can
be
recovered
through
demand.
(e)
Issuer
is
a
U.S.
branch
of
a
foreign
domiciled
bank.
(f)
Rates
are
the
current
rate
or
a
range
of
current
rates
as
of
period
end.
(g)
Zero-coupon
bond.
(h)
Affiliate
of
the
Fund.
(i)
Annualized
7-day
yield
as
of
period
end.
Schedule
of
Investments
(unaudited)
(continued)
January
31,
2024
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
11
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the six
months
ended
January
31,
2024
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
07/31/23
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
01/31/24
Shares
Held
at
01/31/24
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
.
$
135,471
$
163,625
(a)
$
—
$
—
$
—
$
299,096
299,096
$
14,004
$
—
—
—
(a)
Represents
net
amount
purchased
(sold).
For
Fund
compliance
purposes,
the
Fund's
industry
classifications
refer
to
one
or
more
of
the
industry
sub-classifications
used
by
one
or
more
widely
recognized
market
indexes
or
rating
group
indexes,
and/or
as
defined
by
the
investment
adviser.
These
definitions
may
not
apply
for
purposes
of
this
report,
which
may
combine
such
industry
sub-classifications
for
reporting
ease.
2024
BlackRock
Semi-Annual
Report
to
Shareholders
Schedule
of
Investments
(unaudited)
(continued)
January
31,
2024
BlackRock
Short
Obligations
Fund
12
Repurchase
Agreements
Repurchase
Agreements
Collateral
Counterparty
Coupon
Rate
Purchase
Date
Maturity
Date
Par
(000)
A
t
Value
Proceeds
Including
Interest
Position
Original
Par
Position
Received,
At
Value
Bank
of
America
Securities,
Inc.
...
5
.63
%
(a)
01/31/24
03/07/24
$
12,250
$
12,250,000
$
12,318,968
Corporate/Debt
Obligations,
2.50%
to
7.79%,
due
04/10/25
to
12/25/68
.........
$
15,402,795
$
13,099,812
5
.81
(a)
01/31/24
04/06/24
2,000
2,000,000
2,021,303
Corporate/Debt
Obligations,
0.00%
to
6.44%,
due
01/25/37
to
11/19/52
.........
54,988,555
2,300,001
–
–
$
14,250,000
$
15,399,813
–
–
BNP
Paribas
SA
....
5
.68
(a)
01/31/24
05/06/24
8,250
8,250,000
8,374,960
U.S.
Government
Sponsored
Agency
Obligations
and
Corporate/Debt
Obligations,
2.35%
to
11.93%,
due
05/06/25
to
12/15/47
.......
10,185,356
9,372,359
–
–
Citigroup
Global
Markets,
Inc.
...........
5
.62
(a)
01/31/24
04/03/24
16,000
16,000,000
16,157,360
U.S.
Government
Sponsored
Agency
Obligations,
0.60%
to
5.50%,
due
09/25/26
to
02/16/64
.........
397,239,392
17,755,738
5
.64
(a)
01/31/24
05/03/24
6,000
6,000,000
6,087,420
Corporate/Debt
Obligations,
0.78%
to
6.77%,
due
10/25/34
to
06/25/60
.........
192,309,718
6,420,000
–
–
$
22,000,000
$
24,175,738
–
–
Goldman
Sachs
&
Co.
LLC
...........
5
.83
(a)
01/31/24
09/03/24
20,000
20,000,000
20,699,600
Corporate/Debt
Obligations,
0.94%
to
9.62%,
due
04/01/24
to
02/15/67
.........
48,635,448
21,999,447
–
–
Mizuho
Securities
USA
LLC
...........
5
.76
(a)
01/31/24
03/07/24
3,500
3,500,000
3,520,160
Corporate/Debt
Obligation,
3.38%,
due
09/25/52
.........
5,526,972
4,025,001
5
.86
(a)
01/31/24
05/02/24
19,000
19,000,000
19,284,536
Corporate/Debt
Obligation,
2.31%,
due
11/20/51
.........
22,536,651
20,330,000
–
–
$
22,500,000
$
24,355,001
–
–
Wells
Fargo
Securities
LLC
...........
5
.71
(a)
01/31/24
05/06/24
17,000
17,000,000
17,258,853
Corporate/Debt
Obligation,
0.00%,
due
03/11/24
.........
17,964,307
17,850,000
–
–
$
104,000,000
$
113,152,358
–
–
(a)
Variable
rate
security.
Rate
as
of
period
end
and
maturity
is
the
date
the
principal
owed
can
be
recovered
through
demand.
Schedule
of
Investments
(unaudited)
(continued)
January
31,
2024
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
13
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the Schedule
of
Investments
above.
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Asset-Backed
Securities
...................................
$
—
$
63,192,642
$
—
$
63,192,642
Corporate
Bonds
........................................
—
497,030,036
—
497,030,036
Foreign
Agency
Obligations
.................................
—
2,522,686
—
2,522,686
Municipal
Bonds
.........................................
—
4,411,478
—
4,411,478
U.S.
Treasury
Obligations
...................................
—
12,328,052
—
12,328,052
Short-Term
Securities
Certificates
of
Deposit
.....................................
—
102,691,934
—
102,691,934
Commercial
Paper
.......................................
—
458,430,107
—
458,430,107
Money
Market
Funds
......................................
299,096
—
—
299,096
Repurchase
Agreements
...................................
—
104,000,000
—
104,000,000
$
299,096
$
1,244,606,935
$
—
$
1,244,906,031
Statement
of
Assets
and
Liabilities
(unaudited)
January
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
14
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
........................................................................................
$
1,140,606,935
Investments,
at
value
—
affiliated
(b)
..........................................................................................
299,096
Cash
.............................................................................................................
17,833
Repurchase
agreements,
at
value
(c)
.........................................................................................
104,000,000
Receivables:
–
Capital
shares
sold
...................................................................................................
9,021,736
Dividends
—
affiliated
.................................................................................................
1,516
Interest
—
unaffiliated
.................................................................................................
7,701,380
From
the
Manager
...................................................................................................
146
Prepaid
e
xpenses
.....................................................................................................
67,739
Total
a
ssets
.........................................................................................................
1,261,716,381
LIABILITIES
Payables:
–
Investments
purchased
................................................................................................
3,084,560
Administration
fees
...................................................................................................
61,102
Capital
shares
redeemed
...............................................................................................
3,216,271
Income
dividend
distributions
............................................................................................
34,009
Investment
advisory
fees
..............................................................................................
141,873
Trustees'
and
Officer's
fees
.............................................................................................
8,426
Other
affiliate
fees
...................................................................................................
9,977
Professional
fees
....................................................................................................
71,457
Service
fees
.......................................................................................................
118,770
Other
accrued
expenses
...............................................................................................
451,464
Total
li
abilities
........................................................................................................
7,197,909
Commitments
and
contingent
liabilities
$
–
NET
ASSETS
........................................................................................................
$
1,254,518,472
NET
ASSETS
CONSIST
OF:
Paid-in
capital
........................................................................................................
$
1,268,019,713
Accumulated
loss
.....................................................................................................
(
13,501,241
)
NET
ASSETS
........................................................................................................
$
1,254,518,472
(a)
Investments,
at
cost
—
unaffiliated
.................................................................................
$
1,141,971,393
(b)
Investments,
at
cost
—
affiliated
...................................................................................
$
299,096
(c)
Repurchase
agreements,
at
cost
..................................................................................
$
104,000,000
Statement
of
Assets
and
Liabilities
(unaudited)
(continued)
January
31,
2024
15
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
NET
ASSET
VALUE
Institutional
Net
assets
.........................................................................................................
$
691,500,401
Shares
outstanding
..................................................................................................
68,790,150
Net
asset
value
.....................................................................................................
$
10.05
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Investor
A
Net
assets
.........................................................................................................
$
542,426,943
Shares
outstanding
..................................................................................................
53,995,568
Net
asset
value
.....................................................................................................
$
10.05
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Class
K
Net
assets
.........................................................................................................
$
20,591,128
Shares
outstanding
..................................................................................................
2,046,039
Net
asset
value
.....................................................................................................
$
10.06
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Statement
of
Operations
(unaudited)
Six
Months
Ended
January
31,
2024
2024
BlackRock
Semi-Annual
Report
to
Shareholders
16
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
INVESTMENT
INCOME
Dividends
—
affiliated
.................................................................................................
$
14,004
Interest
—
unaffiliated
.................................................................................................
32,162,504
Total
investment
income
.................................................................................................
32,176,508
EXPENSES
Investment
advisory
..................................................................................................
1,546,918
Service
—
class
specific
...............................................................................................
703,352
Transfer
agent
—
class
specific
..........................................................................................
270,669
Administration
.....................................................................................................
252,703
Administration
—
class
specific
..........................................................................................
124,721
Registration
.......................................................................................................
68,221
Professional
.......................................................................................................
41,999
Accounting
services
..................................................................................................
32,794
Printing
and
postage
.................................................................................................
22,162
Custodian
.........................................................................................................
14,546
Trustees
and
Officer
..................................................................................................
10,794
Miscellaneous
......................................................................................................
21,414
Total
expenses
.......................................................................................................
3,110,293
Less:
–
Administration
fees
waived
by
the
Manager
—
class
specific
.......................................................................
(
20,053
)
Fees
waived
and/or
reimbursed
by
the
Manager
...............................................................................
(
762,108
)
Transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
—
class
specific
..........................................................
(
837
)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
2,327,295
Net
investment
income
..................................................................................................
29,849,213
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
6,474,583
Net
realized
loss
from
investments
........................................................................................
(
3,110,965
)
Net
change
in
unrealized
appreciation
on
investments
...........................................................................
9,585,548
Net
realized
and
unrealized
gain
...........................................................................................
6,474,583
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
..................................................................
$
36,323,796
Statements
of
Changes
in
Net
Assets
17
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..............................................................................
$
29,849,213
$
59,858,331
Net
realized
loss
..................................................................................
(
3,110,965
)
(
5,177,524
)
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
9,585,548
13,083,470
Net
increase
in
net
assets
resulting
from
operations
.............................................................
36,323,796
67,764,277
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Institutional
.....................................................................................
(
16,132,042
)
(
35,628,613
)
Investor
A
......................................................................................
(
13,115,369
)
(
22,756,450
)
Class
K
.......................................................................................
(
598,009
)
(
1,471,493
)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(29,845,420
)
(59,856,556
)
CAPITAL
SHARE
TRANSACTIONS
Net
decrease
in
net
assets
derived
from
capital
share
transactions
...................................................
(87,632,300
)
(1,138,006,863
)
NET
ASSETS
Total
decrease
in
net
assets
............................................................................
(
81,153,924
)
(
1,130,099,142
)
Beginning
of
period
..................................................................................
1,335,672,396
2,465,771,538
End
of
period
......................................................................................
$
1,254,518,472
$
1,335,672,396
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
18
BlackRock
Short
Obligations
Fund
Institutional
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Year
Ended
07/31/19
Net
asset
value,
beginning
of
period
...........
$
10.00
$
9.95
$
10.05
$
10.07
$
10.02
$
9.99
Net
investment
income
(a)
...................
0
.25
0
.32
0
.04
0
.04
0
.17
0
.26
Net
realized
and
unrealized
gain
(loss)
..........
0
.05
0
.07
(
0
.09
)
(
0
.02
)
0
.06
0
.03
Net
increase
(decrease)
from
investment
operations
..
0.30
0.39
(0.05
)
0.02
0.23
0.29
Distributions
(b)
–
–
–
–
–
–
From
net
investment
income
................
(
0
.25
)
(
0
.34
)
(
0
.05
)
(
0
.04
)
(
0
.18
)
(
0
.26
)
From
net
realized
gain
.....................
—
—
—
—
(
0
.00
)
(c)
(
0
.00
)
(c)
Total
distributions
.........................
(0.25
)
(0.34
)
(0.05
)
(0.04
)
(0.18
)
(0.26
)
Net
asset
value,
end
of
period
................
$
10.05
$
10.00
$
9.95
$
10.05
$
10.07
$
10.02
Total
Return
(d)
—
—
—
—
—
—
Based
on
net
asset
value
....................
2.99
%
(e)
3.96
%
(0.51
)%
0.20
%
2.28
%
2.96
%
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
...........................
0.39
%
(g)
0.38
%
0.36
%
0.36
%
0.43
%
0.45
%
Total
expenses
after
fees
waived
and/or
reimbursed
..
0.27
%
(g)
0.28
%
0.26
%
0.26
%
0.30
%
0.26
%
Net
investment
income
.....................
4.89
%
(g)
3.22
%
0.45
%
0.39
%
1.69
%
2.59
%
Supplemental
Data
Net
assets,
end
of
period
(000)
................
$
691,500
$
700,104
$
1,382,186
$
2,037,769
$
1,951,914
$
1,117,218
Portfolio
turnover
rate
.......................
12
%
18
%
36
%
67
%
40
%
18
%
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
19
Financial
Highlights
BlackRock
Short
Obligations
Fund
Investor
A
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Year
Ended
07/31/19
Net
asset
value,
beginning
of
period
...........
$
9.99
$
9.94
$
10.05
$
10.06
$
10.01
$
9.99
Net
investment
income
(a)
...................
0
.23
0
.30
0
.02
0
.02
0
.15
0
.24
Net
realized
and
unrealized
gain
(loss)
..........
0
.06
0
.07
(
0
.11
)
(
0
.01
)
0
.06
0
.02
Net
increase
(decrease)
from
investment
operations
..
0.29
0.37
(0.09
)
0.01
0.21
0.26
Distributions
(b)
–
–
–
–
–
–
From
net
investment
income
................
(
0
.23
)
(
0
.32
)
(
0
.02
)
(
0
.02
)
(
0
.16
)
(
0
.24
)
From
net
realized
gain
.....................
—
—
—
—
(
0
.00
)
(c)
(
0
.00
)
(c)
Total
distributions
.........................
(0.23
)
(0.32
)
(0.02
)
(0.02
)
(0.16
)
(0.24
)
Net
asset
value,
end
of
period
................
$
10.05
$
9.99
$
9.94
$
10.05
$
10.06
$
10.01
Total
Return
(d)
—
—
—
—
—
—
Based
on
net
asset
value
....................
2.98
%
(e)
3.73
%
(0.85
)%
0.06
%
2.08
%
2.63
%
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
...........................
0.63
%
(g)
0.62
%
0.61
%
0.61
%
0.59
%
0.64
%
Total
expenses
after
fees
waived
and/or
reimbursed
..
0.50
%
(g)
0.50
%
0.50
%
0.50
%
0.49
%
0.47
%
Net
investment
income
.....................
4.66
%
(g)
3.03
%
0.19
%
0.16
%
1.47
%
2.37
%
Supplemental
Data
Net
assets,
end
of
period
(000)
................
$
542,427
$
605,942
$
1,029,382
$
2,008,368
$
2,585,292
$
1,136,936
Portfolio
turnover
rate
.......................
12
%
18
%
36
%
67
%
40
%
18
%
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
20
BlackRock
Short
Obligations
Fund
Class
K
Six
Months
Ended
01/31/24
(unaudited)
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Year
Ended
07/31/19
Net
asset
value,
beginning
of
period
...........
$
10.01
$
9.96
$
10.07
$
10.08
$
10.04
$
10.01
Net
investment
income
(a)
...................
0
.25
0
.33
0
.04
0
.04
0
.18
0
.26
Net
realized
and
unrealized
gain
(loss)
..........
0
.05
0
.07
(
0
.10
)
(
0
.00
)
(b)
0
.05
0
.04
Net
increase
(decrease)
from
investment
operations
..
0.30
0.40
(0.06
)
0.04
0.23
0.30
Distributions
(c)
–
–
–
–
–
–
From
net
investment
income
................
(
0
.25
)
(
0
.35
)
(
0
.05
)
(
0
.05
)
(
0
.19
)
(
0
.27
)
From
net
realized
gain
.....................
—
—
—
—
(
0
.00
)
(b)
(
0
.00
)
(b)
Total
distributions
.........................
(0.25
)
(0.35
)
(0.05
)
(0.05
)
(0.19
)
(0.27
)
Net
asset
value,
end
of
period
................
$
10.06
$
10.01
$
9.96
$
10.07
$
10.08
$
10.04
Total
Return
(d)
—
—
—
—
—
—
Based
on
net
asset
value
....................
3.03
%
(e)
4.04
%
(0.55
)%
0.36
%
2.28
%
3.02
%
Ratios
to
Average
Net
Assets
(f)
Total
expen
ses
...........................
0.35
%
(g)
0.33
%
0.32
%
0.31
%
0.33
%
0.45
%
Total
expenses
after
fees
waived
and/or
reimbursed
..
0.20
%
(g)
0.20
%
0.20
%
0.20
%
0.20
%
0.20
%
Net
investment
income
.....................
4.96
%
(g)
3.27
%
0.39
%
0.41
%
1.84
%
2.64
%
Supplemental
Data
Net
assets,
end
of
period
(000)
................
$
20,591
$
29,627
$
54,203
$
537,512
$
123,417
$
132,264
Portfolio
turnover
rate
.......................
12
%
18
%
36
%
67
%
40
%
18
%
(a)
Based
on
average
shares
outstanding.
(b)
Amount
is
greater
than
$(0.005)
per
share.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Not
annualized.
(f)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(g)
Annualized.
See
notes
to
financial
statements.
Notes
to
Financial
Statements
(unaudited)
21
Notes
to
Financial
Statements
1.
ORGANIZATION
BlackRock
Funds
SM
(the
“Trust”)
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
management
investment
company.
The Trust
is
organized
as
a
Massachusetts
business
trust.
BlackRock
Short
Obligations
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,
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.
(a)
Investor
A
Shares
may
be
subject
to
a
CDSC
upon
redemption
of
shares
received
in
an
exchange
transaction
for
Investor A
Shares
of
a
fund
advised
by
BlackRock
Advisors,
LLC
(the
“Manager”)
or
its
affiliates
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase
of
such
fund.
The
Fund,
together
with
certain
other
registered
investment
companies
advised
by
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.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities,
is
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets.
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.
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
Share
Class
Initial
Sales
Charge
Contingent
Deferred
Sales
Charge
(“CDSC”)
Conversion
Privilege
Institutional
Shares
...........................................
No
No
None
Investor
A
Shares
............................................
No
No
(a)
None
Class
K
Shares
.............................................
No
No
None
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
22
fair
value.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds) are
valued
at
that
day’s
published net
asset
value
(“NAV”).
Repurchase
agreements
are
valued
at
amortized
cost,
which
approximates
market
value.
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.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows:
Level
1
—
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
the
Fund
has
the
ability
to
access;
Level
2
—
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market–corroborated
inputs);
and
Level
3 —
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available
(including
the
Valuation
Committee’s
assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety. Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the
Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
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
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
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.
Repurchase
Agreements:
Repurchase
agreements
are
commitments
to
purchase
a
security
from
a
counterparty
who
agrees
to
repurchase
the
same
security
at
a
mutually
agreed
upon
date
and
price.
On
a
daily
basis,
the
counterparty
is
required
to
maintain
collateral
subject
to
the
agreement
and
in
value
no
less
than
the
agreed
upon
repurchase
amount.
Repurchase
agreements
may
be
traded
bilaterally,
in
a
tri-party
arrangement
or
may
be
centrally
cleared
through
a
sponsoring
agent.
Subject
to
the
custodial
undertaking
associated
with
a
tri-party
repurchase
arrangement
and
for
centrally
cleared
repurchase
agreements,
a
third-party
custodian
maintains
accounts
to
hold
collateral
for a
fund
and
its
counterparties.
Typically,
a
fund
and
counterparty
are
not
permitted
to
sell,
re-pledge
or
use
the
collateral
absent
a
default
by
the
counterparty
or the
fund,
respectively.
In
the
event
the
counterparty
defaults
and
the
fair
value
of
the
collateral
declines, a
fund
could
experience
losses,
delays
and
costs
in
liquidating
the
collateral.
Notes
to
Financial
Statements
(unaudited)
(continued)
23
Notes
to
Financial
Statements
Repurchase
agreements
are
entered
into
by a
fund
under
Master
Repurchase
Agreements
(each,
an
“MRA”).
The
MRA
permits the
fund,
under
certain
circumstances
including
an
event
of
default
(such
as
bankruptcy
or
insolvency),
to
offset
payables
and/or
receivables
with
collateral
held
by
and/or
posted
to
the
counterparty.
As
a
result,
one
single
net
payment
is
created.
Bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
such
a
right
of
offset
in
the
event
of
the
MRA
counterparty’s
bankruptcy
or
insolvency.
Based
on
the
terms
of
the
MRA, the
fund
receives
collateral
with
a
market
value
in
excess
of
the
repurchase
price
at
maturity.
Upon
a
bankruptcy
or
insolvency
of
the
MRA
counterparty,
the
fund
would
recognize
a
liability
with
respect
to
such
excess
collateral.
The
liability
reflects
the
fund’s
obligation
under
bankruptcy
law
to
return
the
excess
to
the
counterparty.
5.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES
Investment
Advisory:
The
Trust,
on
behalf
of
the
Fund,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Fund’s
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
(“BlackRock”),
to
provide
investment
advisory
services.
The
Manager
is
responsible
for
the
management
of the
Fund’s
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of the
Fund.
For
such
services,
the
Fund
pays
the
Manager
a
monthly
fee
at
an
annual
rate
equal
to
the
following
percentages
of
the
average
daily
value
of
the
Fund’s
net
assets:
The
Manager
entered
into
a
sub-advisory
agreement
with
BlackRock
International
Limited
(“BIL”),
(the
“Sub-Adviser”),
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.
Service
Fees:
The
Trust
,
on behalf
of
the
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,
the
Fund
pays
BRIL
ongoing
service
fees.
The
fees
are
accrued
daily
and
paid
monthly
at
annual
rates
based
upon
the
average
daily
net
assets
of
the
relevant
share
class
of
the
Fund
as
follows:
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
servicing
to
the
Fund.
The
ongoing
service
fee
compensates
BRIL
and
each
broker-
dealer
for
providing
shareholder
servicing
related
services
to
shareholders.
For
the six
months
ended
January
31,
2024,
the
class
specific
service
fees
borne
directly
by Investor
A Shares
of
the
Fund
were
$703,352.
Administration:
The
Trust,
on
behalf
of
the
Fund,
entered
into
an
Administration
Agreement
with
the
Manager,
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
to
provide
administrative
services.
For
these
services,
the
Manager
receives
an
administration
fee
computed
daily
and
payable
monthly,
based
on
a
percentage
of
the
average
daily
net
assets
of
the
Fund.
The
administration
fee,
which
is
shown
as
administration
in
the
Statement
of
Operations,
is
paid
at
the
annual
rates
below.
In
addition,
the
Manager
charges
each
of
the
share
classes
an
administration
fee,
which
is
shown
as
administration —
class
specific
in
the
Statement
of
Operations,
at
an
annual
rate
of
0.02% of
the
average
daily
net
assets
of
each
respective
class.
For
the
six
months
ended
January
31,
2024, the
following
table
shows
the
class
specific
administration
fees
borne
directly
by
each
share
class
of
the
Fund:
Transfer
Agent:
Pursuant
to
written
agreements,
certain
financial
intermediaries,
some
of
which
may
be
affiliates,
provide
the
Fund
with
sub-accounting,
recordkeeping,
sub-transfer
agency
and
other
administrative
services
with
respect
to
servicing
of
underlying
investor
accounts.
For
these
services,
these
entities
receive
an
asset-based
fee
or
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets.
For
the
six
months ended January
31,
2024,
the
Fund
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
billion
.........................................................................................................
0.25%
$1
billion
-
$3
billion
.....................................................................................................
0.24
$3
billion
-
$5
billion
.....................................................................................................
0.23
$5
billion
-
$10
billion
....................................................................................................
0.22
Greater
than
$10
billion
...................................................................................................
0.21
Share
Class
Service
Fees
Investor
A
..............................................................................................................
0.25
%
Average
Daily
Net
Assets
Administration
Fees
First
$500
million
......................................................................................................
0.0425%
$500
million
-
$1
billion
..................................................................................................
0.0400
$1
billion
-
$2
billion
....................................................................................................
0.0375
$2
billion
-
$4
billion
....................................................................................................
0.0350
$4
billion
-
$13
billion
...................................................................................................
0.0325
Greater
than
$13
billion
..................................................................................................
0.0300
Institutional
Investor
A
Class
K
Total
Administration
fees
-
class
specific
.......................................................
$
66,040
$
56,268
$
2,413
$
124,721
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
24
The
Manager
maintains
a
call
center
that
is
responsible
for
providing
certain
shareholder
services
to
the
Fund.
Shareholder
services
include
responding
to
inquiries
and
processing
purchases
and
sales
based
upon
instructions
from
shareholders.
For
the six
months
ended
January
31,
2024,
the
Fund
reimbursed
the
Manager
the
following
amounts
for
costs
incurred
in
running
the
call
center,
which
are
included
in
transfer
agent
—
class
specific
in
the
Statement
of
Operations:
For
the
six
months ended
January
31,
2024,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Other
Fees:
For
the
six
months
ended
January
31,
2024
,
affiliates
received
CDSCs
of
$
2,062
for
Investor
A
Shares.
Expense
Limitations,
Waivers,
Reimbursements,
and
Recoupments:
The
Manager
contractually
agreed
to
waive
its
investment
advisory
fees
by
the
amount
of
investment
advisory
fees
the
Fund
pays
to
the
Manager
indirectly
through
its
investment
in
affiliated
money
market
funds
(the
“affiliated
money
market
fund
waiver”)
through
June
30,
2025.
The
contractual
agreement
may
be
terminated
upon
90
days’
notice
by
a
majority
of
the
trustees
who
are
not
"interested
persons"
of
the
Trust,
as
defined
in
the
1940
Act
("Independent
Trustees")
,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
The
amount
of
waivers
and/or
reimbursements
of
fees
and
expenses
made
pursuant
to
the
expense
limitation
described
below
will
be
reduced
by
the
amount
of
the
affiliated
money
market
fund
waiver. This
amount
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
For
the
six
months
ended
January
31,
2024,
the
amount
waived
was
$163.
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of
the
Fund’s
assets
invested
in
affiliated
equity
and
fixed-income mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
June
30,
2025.
The
contractual
agreement
may
be
terminated
upon
90
days’
notice
by
a
majority
of
the
Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
For
the
six
months
ended
January
31,
2024,
there
were
no
fees
waived
by
the
Manager
pursuant
to
this
arrangement.
The
Manager
contractually
and/or
voluntarily
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
expenses,
excluding
interest
expense,
dividend
expense,
tax
expense,
acquired
fund
fees
and
expenses,
and
certain
other
fund
expenses,
which
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of
the
Fund’s
business
(“expense
limitation”).
The
expense
limitations
as
a
percentage
of
average
daily
net
assets
are
as
follows:
For
the
six
months ended
January
31,
2024,
the
Manager
waived
and/or
reimbursed
investment
advisory
fees
of
$761,945
which
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
In
addition,
these
amounts
waived
and/or
reimbursed
by
the
Manager are
included
in the
Statement
of
Operations.
For
the
six
months ended
January
31,
2024,
class
specific
expense
waivers
and/or
reimbursements were as
follows:
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
“Order”)
from
the
U.S.
Securities
and
Exchange
Commission
(“SEC”),
the
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
“Interfund
Lending
Program”),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by
the
Fund’s
investment
policies
and
restrictions.
The
Fund
is
currently
permitted
to
borrow
and
lend
under
the
Interfund
Lending
Program.
A
lending
BlackRock
fund
may
lend
in
aggregate
up
to
15%
of
its
net
assets
but
may
not
lend
more
than
5%
of
its
net
assets
to
any
one
borrowing
fund
through
the
Interfund
Lending
Program.
A
borrowing
BlackRock
fund
may
not
borrow
through
the
Interfund
Lending
Program
or
from
any
other
source
more
than
33
1/3%
of
its
total
assets
(or
any
lower
threshold
provided
for
by
the fund’s
investment
restrictions).
If
a
borrowing
BlackRock
fund’s
total
outstanding
borrowings
exceed
10%
of
its
total
assets,
each
of
its
outstanding
interfund
loans
will
be
subject
to
collateralization
of
at
least
102%
of
the
outstanding
principal
value
of
the
loan.
All
interfund
loans
are
for
temporary
or
emergency
purposes
and
the
interest
rate
to
be
charged
will
be
the
average
of
the
highest
current
overnight
repurchase
agreement
rate
available
to
a
lending
fund
and
the
bank
loan
rate,
as
calculated
according
to
a
formula
established
by
the
Board.
During the
period
ended
January
31,
2024,
the
Fund
did
not
participate
in
the
Interfund
Lending
Program.
Trustees
and
Officers:
Certain
trustees
and/or
officers
of
the Trust are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Fund
reimburses
the
Manager
for
a
portion
of
the
compensation
paid
to
the
Fund’s
Chief
Compliance
Officer,
which
is
included
in
Trustees and
Officer
in
the
Statement
of
Operations.
Institutional
Investor
A
Total
Reimbursed
Amount
..............................................................................
$
611
$
2,305
$
2,916
Institutional
Investor
A
Class
K
Total
Transfer
agent
fees
-
class
specific
.......................................................
$
167,350
$
102,482
$
837
$
270,669
Contractual
(a)
Voluntary
(b)
Institutional
................................................................................................
0.35%
0.30%
Investor
A
.................................................................................................
0.60
0.50
Class
K
..................................................................................................
0.30
0.20
(a)
The
Manager
has
agreed
not
to
reduce
or
discontinue
this
contractual
waiver
or
reimbursement
through
June
30,
2025,
unless
approved
by
the
Board,
including
a
majority
of
the
Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
(b)
The
voluntary
waiver
or
reimbursement
may
be
reduced
or
discontinued
at
any
time
without
notice.
Share
Class
Administration
Fees
Waived
by
the
Manager
-
Class
Specific
Transfer
Agent
Fees
Waived
and/or
Reimbursed
by
the
Manager
-
Class
Specific
Investor
A
.....................................................................................
$
17,640
$
—
Class
K
......................................................................................
2,413
837
$
20,053
$
837
Notes
to
Financial
Statements
(unaudited)
(continued)
25
Notes
to
Financial
Statements
6.
PURCHASES
AND
SALES
For
the
six
months ended
January
31,
2024,
purchases
and
sales
of
investments, excluding
short-term
investments,
were
as
follows:
7.
INCOME
TAX
INFORMATION
It
is
the
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required.
The
Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
the
Fund’s
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
years
after
they
are
filed.
The
statutes
of
limitations
on
the
Fund’s
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction.
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Fund
as
of
January
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.
As
of
July
31,
2023,
the
Fund
had
non-expiring
capital
loss
carryforwards
available
to
offset
future
realized
capital
gains
of
$(9,137,722).
As
of
January
31,
2024, gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows:
8.
BANK
BORROWINGS
The
Trust,
on
behalf
of
the
Fund,
along
with
certain
other
funds
managed
by
the
Manager
and
its
affiliates
(“Participating
Funds”), is
party
to
a
364-day,
$2.50
billion
credit
agreement
with
a
group
of
lenders.
Under
this
agreement,
the
Fund
may
borrow
to
fund
shareholder
redemptions.
Excluding
commitments
designated
for
certain
individual
funds,
the
Participating
Funds,
including
the
Fund,
can
borrow
up
to
an
aggregate
commitment
amount
of
$1.75
billion
at
any
time
outstanding,
subject
to
asset
coverage
and
other
limitations
as
specified
in
the
agreement.
The
credit
agreement
has
the
following
terms:
a
fee
of
0.10%
per
annum
on
unused
commitment
amounts
and
interest
at
a
rate
equal
to
the
higher
of
(a)
Overnight
Bank
Funding
Rate
(“OBFR”)
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.80%
per
annum,
(b)
the
Fed
Funds
rate
(but,
in
any
event,
not
less
than
0.00%)
in
effect
from
time
to
time
plus
0.80%
per
annum
on
amounts
borrowed
or
(c)
the
sum
of
(x)
Daily
Simple
Secured
Overnight
Financing
Rate
(“SOFR”)
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.10%
and
(y)
0.80%
per
annum. The
agreement
expires
in
April
2024
unless
extended
or
renewed. These
fees
were
allocated
among
such
funds
based
upon
portions
of
the
aggregate
commitment
available
to
them
and
relative
net
assets
of
Participating
Funds.
During
the
six
months ended
January
31,
2024,
the
Fund
did
not
borrow
under
the
credit
agreement.
9.
PRINCIPAL
RISKS
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Fund
and its
investments.
The
Fund’s
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject.
Market Risk:
The
Fund
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.
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
U.S.
Government
Securities
Other
Securities
Fund
Name
Purchases
Purchases
Sales
BlackRock
Short
Obligations
Fund
..........................................
$
12,176,892
$
67,234,362
$
364,805,717
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
BlackRock
Short
Obligations
Fund
......................................
$
1,246,273,005
$
1,306,247
$
(2,673,221)
$
(1,366,974)
Notes
to
Financial
Statements
(unaudited)
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
26
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.
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
securities
within
a
single
or
limited
number
of
market
sectors.
When
a
fund
concentrates
its
investments
in
this
manner,
it
assumes
the
risk
that
economic,
regulatory,
political
and
social
conditions
affecting
such
sectors
may
have
a
significant
impact
on
the
Fund
and
could
affect
the
income
from,
or
the
value
or
liquidity
of,
the
Fund’s
portfolio.
Investment
percentages
in
specific
sectors
are
presented
in
the
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
due
to
the period
of
historically
low
interest
rates
that
ended
in
March
2022. The
Federal
Reserve
has
raised
the
federal
funds
rate
as
part
of
its
efforts
to
address
inflation.
There
is
a
risk
that
interest
rates
will
continue
to
rise,
which
will
likely
drive
down
the
prices
of
bonds
and
other
fixed-income
securities,
and
could
negatively
impact
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.
Certain
Funds
invest
a
significant
portion
of
their
assets
within
the
financials
sector.
Performance
of
companies
in
the
financials
sector
may
be
adversely
impacted
by
many
factors,
including,
among
others,
changes
in
government
regulations,
economic
conditions,
and
interest
rates,
credit
rating
downgrades,
adverse
public
perception,
exposure
concentration
and
decreased
liquidity
in
credit
markets.
The
impact
of
changes
in
capital
requirements
and
recent
or
future
regulation
on
any
individual
financial
company,
or
on
the
financials
sector
as
a
whole,
cannot
be
predicted,
but
may
negatively
impact
the
Funds.
Significant
Shareholder
Redemption
Risk:
Certain
shareholders
may
own
or
manage
a
substantial
amount
of
fund
shares
and/or
hold
their
fund
investments
for
a
limited
period
of
time.
Large
redemptions
of
fund
shares
by
these
shareholders
may
force
a
fund
to
sell
portfolio
securities,
which
may
negatively
impact
the
fund’s
NAV,
increase
the
fund’s
brokerage
costs,
and/or
accelerate
the
realization
of
taxable
income/gains
and
cause
the
fund
to
make
additional
taxable
distributions
to
shareholders.
LIBOR
Transition
Risk:
The
Fund
may
be
exposed
to
financial
instruments
that
recently
transitioned
from,
or
continue
to
be
tied
to,
the
London
Interbank
Offered
Rate
(“LIBOR”)
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
United
Kingdom’s
Financial
Conduct
Authority,
which
regulates
LIBOR,
has
ceased
publishing
all
LIBOR
settings,
but
some
USD
LIBOR
settings
will
continue
to
be
published
under
a
synthetic
methodology
until
September
30,
2024
for
certain
legacy
contracts.
SOFR
has
been
used
increasingly
on
a
voluntary
basis
in
new
instruments
and
transactions.
Under
U.S.
regulations
that
implement
a
statutory
fallback
mechanism
to
replace
LIBOR,
benchmark
rates
based
on
SOFR
have
replaced
LIBOR
in
certain
financial
contracts.
The
ultimate
effect
of
the
LIBOR
transition
process
on
the
Fund
is
uncertain.
Notes
to
Financial
Statements
(unaudited)
(continued)
27
Notes
to
Financial
Statements
10.
CAPITAL
SHARE
TRANSACTIONS
Transactions
in
capital
shares
for
each
class
were
as
follows:
11.
SUBSEQUENT
EVENTS
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Fund
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Six
Months
Ended
01/31/24
Year
Ended
07/31/23
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
BlackRock
Short
Obligations
Fund
Institutional
Shares
sold
.............................................
21,929,755
$
219,905,795
89,765,988
$
893,322,897
Shares
issued
in
reinvestment
of
distributions
........................
1,607,795
16,119,488
3,573,388
35,604,943
Shares
redeemed
.........................................
(24,765,347)
(248,062,465)
(162,290,630)
(1,615,604,764)
(1,227,797)
$
(12,037,182)
(68,951,254)
$
(686,676,924)
Investor
A
Shares
sold
.............................................
6,029,712
$
60,407,718
10,075,898
$
100,311,541
Shares
issued
in
reinvestment
of
distributions
........................
1,305,448
13,078,749
2,275,377
22,661,582
Shares
redeemed
.........................................
(13,979,611)
(139,925,505)
(55,265,176)
(549,602,427)
(6,644,451)
$
(66,439,038)
(42,913,901)
$
(426,629,304)
Class
K
Shares
sold
.............................................
130,336
$
1,306,264
2,740,282
$
27,299,563
Shares
issued
in
reinvestment
of
distributions
........................
38,887
390,285
69,443
692,846
Shares
redeemed
.........................................
(1,082,534)
(10,852,629)
(5,292,196)
(52,693,044)
(913,311)
$
(9,156,080)
(2,482,471)
$
(24,700,635)
(8,785,559)
$
(87,632,300)
(114,347,626)
$
(1,138,006,863)
Statement
Regarding
Liquidity
Risk
Management
Program
2024
BlackRock
Semi-Annual
Report
to
Shareholders
28
In
compliance
with
Rule
22e-4
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“Liquidity
Rule”),
BlackRock
Funds
SM
(the
“Trust”)
has
adopted
and
implemented
a
liquidity
risk
management
program
(the
“Program”)
for
BlackRock
Short
Obligations
Fund
(the
“Fund”),
a
series
of
the
Trust,
which
is
reasonably
designed
to
assess
and
manage
the
Fund’s
liquidity
risk.
The
Board
of
Trustees
(the
“Board”)
of
the
Trust
on
behalf
of
the
Fund
met
on
November
16-17,
2023
(the
“Meeting”)
to
review
the
Program.
The
Board
previously
appointed
BlackRock
Advisors,
LLC
or
BlackRock
Fund
Advisors
(“BlackRock”),
each
an
investment
adviser
to
certain
BlackRock
funds,
as
the
program
administrator
for
the
Fund’s
Program,
as
applicable.
BlackRock
also
previously
delegated
oversight
of
the
Program
to
the
40
Act
Liquidity
Risk
Management
Committee
(the
“Committee”).
At
the
Meeting,
the
Committee,
on
behalf
of
BlackRock,
provided
the
Board
with
a
report
that
addressed
the
operation
of
the
Program
and
assessed
its
adequacy
and
effectiveness
of
implementation,
including
the
management
of
the
Fund’s
Highly
Liquid
Investment
Minimum
(“HLIM”)
where
applicable,
and
any
material
changes
to
the
Program
(the
“Report”).
The
Report
covered
the
period
from
October
1,
2022
through
September
30,
2023
(the
“Program
Reporting
Period”).
The
Report
described
the
Program’s
liquidity
classification
methodology
for
categorizing
the
Fund’s
investments
(including
derivative
transactions)
into
one
of
four
liquidity
buckets.
It
also
referenced
the
methodology
used
by
BlackRock
to
establish
the
Fund’s
HLIM
and
noted
that
the
Committee
reviews
and
ratifies
the
HLIM
assigned
to
the
Fund
no
less
frequently
than
annually.
The
Report
also
discussed
notable
events
affecting
liquidity
over
the
Program
Reporting
Period,
including
the
imposition
of
capital
controls
in
certain
countries.
The
Report
noted
that
the
Program
complied
with
the
key
factors
for
consideration
under
the
Liquidity
Rule
for
assessing,
managing
and
periodically
reviewing
the
Fund’s
liquidity
risk,
as
follows:
a)
The
Fund’s
investment
strategy
and
liquidity
of
portfolio
investments
during
both
normal
and
reasonably
foreseeable
stressed
conditions
.
During
the
Program
Reporting
Period,
the
Committee
reviewed
whether
the
Fund’s
strategy
is
appropriate
for
an
open-end
fund
structure
with
a
focus
on
funds
with
more
significant
and
consistent
holdings
of
less
liquid
and
illiquid
assets.
The
Committee
also
factored
a
fund’s
concentration
in
an
issuer
into
the
liquidity
classification
methodology
by
taking
issuer
position
sizes
into
account.
Where
a
fund
participated
in
borrowings
for
investment
purposes
(such
as
tender
option
bonds
or
reverse
repurchase
agreements),
such
borrowings
were
factored
into
the
Program’s
calculation
of
a
fund’s
liquidity
bucketing.
A
fund’s
derivative
exposure
was
also
considered
in
such
calculation.
b)
Short-term
and
long-term
cash
flow
projections
during
both
normal
and
reasonably
foreseeable
stressed
conditions
.
During
the
Program
Reporting
Period,
the
Committee
reviewed
historical
redemption
activity
and
used
this
information
as
a
component
to
establish
the
Fund’s
reasonably
anticipated
trading
size
utilized
for
liquidity
classifications.
The
Fund
has
adopted
an
in-kind
redemption
policy
which
may
be
utilized
to
meet
larger
redemption
requests.
The
Committee
may
also
take
into
consideration
a
fund’s
shareholder
ownership
concentration
(which,
depending
on
product
type
and
distribution
channel,
may
or
may
not
be
available),
a
fund’s
distribution
channels,
and
the
degree
of
certainty
associated
with
a
fund’s
short-term
and
long-term
cash
flow
projections.
c)
Holdings
of
cash
and
cash
equivalents,
as
well
as
borrowing
arrangements
.
The
Committee
considered
the
terms
of
the
credit
facility
committed
to
the
Fund,
the
financial
health
of
the
institution
providing
the
facility
and
the
fact
that
the
credit
facility
is
shared
among
multiple
funds
(including
that
a
portion
of
the
aggregate
commitment
amount
is
specifically
designated
for
BlackRock
Floating
Rate
Income
Portfolio,
a
series
of
BlackRock
Funds
V,
and
BlackRock
Floating
Rate
Loan
ETF,
a
series
of
BlackRock
ETF
Trust
II).
The
Committee
also
considered
other
types
of
borrowing
available
to
the
funds,
such
as
the
ability
to
use
reverse
repurchase
agreements
and
interfund
lending,
as
applicable.
There
were
no
material
changes
to
the
Program
during
the
Program
Reporting
Period
other
than
the
enhancement
of
certain
model
components
in
the
Program’s
classification
methodology.
The
Report
provided
to
the
Board
stated
that
the
Committee
concluded
that
based
on
the
operation
of
the
functions,
as
described
in
the
Report,
the
Program
is
operating
as
intended
and
is
effective
in
implementing
the
requirements
of
the
Liquidity
Rule.
Additional
Information
29
Additional
Information
Tailored
Shareholder
Reports
for
Open-End Mutual
Funds
and
ETFs
Effective
January
24,
2023,
the
SEC
adopted
rule
and
form
amendments
to
require
open-end mutual
funds
and
ETFs
to
transmit
concise
and
visually
engaging
streamlined
annual
and
semiannual
reports
to
shareholders
that
highlight
key
information.
Other
information,
including
financial
statements,
will
no
longer
appear
in
a
streamlined
shareholder
report
but
must
be
available
online,
delivered
free
of
charge
upon
request,
and
filed
on
a
semiannual
basis
on
Form
N-CSR.
The
rule
and
form
amendments
have
a
compliance
date
of
July
24,
2024.
At
this
time,
management
is
evaluating
the
impact
of
these
amendments
on
the
shareholder
reports
for
the
Fund.
General
Information
Quarterly
performance,
semi-annual
and
annual
reports,
current
net
asset
value
and
other
information
regarding
the
Fund
may
be
found
on
BlackRock’s
website,
which
can
be
accessed
at
blackrock.com
.
Any
reference
to
BlackRock’s
website
in
this
report
is
intended
to
allow
investors
public
access
to
information
regarding
the
Fund
and
does
not,
and
is
not
intended
to,
incorporate
BlackRock’s
website
in
this
report.
Householding
The
Fund
will
mail
only
one
copy
of
shareholder
documents,
including
prospectuses,
annual
and
semi-annual
reports,
Rule
30e-3
notices
and
proxy
statements,
to
shareholders
with
multiple
accounts
at
the
same
address.
This
practice
is
commonly
called
“householding”
and
is
intended
to
reduce
expenses
and
eliminate
duplicate
mailings
of
shareholder
documents.
Mailings
of
your
shareholder
documents
may
be
householded
indefinitely
unless
you
instruct
us
otherwise.
If
you
do
not
want
the
mailing
of
these
documents
to
be
combined
with
those
for
other
members
of
your
household,
please
call
the
Fund at
(800)
441-7762.
Availability
of
Quarterly
Schedule
of
Investments
The
Fund
files
its
complete
schedule
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to
its
reports
on
Form
N-PORT.
The
Fund’s
Form
N-PORT is
available
on
the
SEC’s
website
at
sec.gov
.
Additionally,
the
Fund
makes
its
portfolio
holdings
for
the
first
and
third
quarters
of
each
fiscal
year
available
at
blackrock.com/fundreports
.
Availability
of
Proxy
Voting
Policies,
Procedures and
Voting
Records
A
description
of
the
policies
and
procedures
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
information
about
how
the
Fund
voted
proxies
relating
to
securities
held
in
the
Fund's
portfolio
during
the
most
recent
12-month
period
ended
June
30 is
available
without
charge,
upon
request (1)
by
calling
(800)
441-7762
;
(2)
on
the
BlackRock
website
at
blackrock.com
;
and
(3)
on
the
SEC’s
website
at
sec.gov
.
BlackRock’s
Mutual
Fund
Family
BlackRock
offers
a
diverse
lineup
of
open-end
mutual
funds
crossing
all
investment
styles
and
managed
by
experts
in
equity,
fixed-income
and
tax-exempt
investing.
Visit
blackrock.com
for
more
information.
Shareholder
Privileges
Account
Information
Call
us
at
(800)
441-7762
from
8:00
AM
to
6:00
PM
ET
on
any
business
day
to
get
information
about
your
account
balances,
recent
transactions
and
share
prices.
You
can
also
visit
blackrock.com
for
more
information.
Automatic
Investment
Plans
Investor
class
shareholders
who
want
to
invest
regularly
can
arrange
to
have
$50
or
more
automatically
deducted
from
their
checking
or
savings
account
and
invested
in
any
of
the
BlackRock
funds.
Systematic
Withdrawal
Plans
Investor
class
shareholders
can
establish
a
systematic
withdrawal
plan
and
receive
periodic
payments
of
$50
or
more
from
their
BlackRock
funds,
as
long
as
their
account
balance
is
at
least
$10,000.
Retirement
Plans
Shareholders
may
make
investments
in
conjunction
with
Traditional,
Rollover,
Roth,
Coverdell,
Simple
IRAs,
SEP
IRAs
and
403(b)
Plans.
Additional
Information
(continued)
2024
BlackRock
Semi-Annual
Report
to
Shareholders
30
BlackRock
Privacy
Principles
BlackRock
is
committed
to
maintaining
the
privacy
of
its
current
and
former
fund
investors
and
individual
clients
(collectively,
“Clients”)
and
to
safeguarding
their
non-public
personal
information.
The
following
information
is
provided
to
help
you
understand
what
personal
information
BlackRock
collects,
how
we
protect
that
information
and
why
in
certain
cases
we
share
such
information
with
select
parties.
If
you
are
located
in
a
jurisdiction
where
specific
laws,
rules
or
regulations
require
BlackRock
to
provide
you
with
additional
or
different
privacy-related
rights
beyond
what
is
set
forth
below,
then
BlackRock
will
comply
with
those
specific
laws,
rules
or
regulations.
BlackRock
obtains
or
verifies
personal
non-public
information
from
and
about
you
from
different
sources,
including
the
following:
(i)
information
we
receive
from
you
or,
if
applicable,
your
financial
intermediary,
on
applications,
forms
or
other
documents;
(ii)
information
about
your
transactions
with
us,
our
affiliates,
or
others;
(iii)
information
we
receive
from
a
consumer
reporting
agency;
and
(iv)
from
visits
to
our
websites.
BlackRock
does
not
sell
or
disclose
to
non-affiliated
third
parties
any
non-public
personal
information
about
its
Clients,
except
as
permitted
by
law
or
as
is
necessary
to
respond
to
regulatory
requests
or
to
service
Client
accounts.
These
non-affiliated
third
parties
are
required
to
protect
the
confidentiality
and
security
of
this
information
and
to
use
it
only
for
its
intended
purpose.
We
may
share
information
with
our
affiliates
to
service
your
account
or
to
provide
you
with
information
about
other
BlackRock
products
or
services
that
may
be
of
interest
to
you.
In
addition,
BlackRock
restricts
access
to
non-public
personal
information
about
its
Clients
to
those
BlackRock
employees
with
a
legitimate
business
need
for
the
information.
BlackRock
maintains
physical,
electronic
and
procedural
safeguards
that
are
designed
to
protect
the
non-public
personal
information
of
its
Clients,
including
procedures
relating
to
the
proper
storage
and
disposal
of
such
information.
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Adviser
BlackRock
International
Limited
Edinburgh,
EH3
8JB
United
Kingdom
Accounting
Agent
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
Transfer
Agent
BNY
Mellon
Investment
Servicing
(US)
Inc.
Wilmington,
DE
19809
Custodians
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
The
Bank
of
New
York
Mellon
New
York,
NY
10286
Independent
Registered
Public
Accounting
Firm
PricewaterhouseCoopers
LLP
Philadelphia,
PA
19103
Distributor
BlackRock
Investments,
LLC
New
York,
NY
10001
Legal
Counsel
Sidley
Austin
LLP
New
York,
NY
10019
Address
of
the
Trust
100
Bellevue
Parkway
Wilmington,
DE
19809
Glossary
of
Terms
Used
in
this
Report
31
Glossary
of
Terms
Used
in
this
Report
Currency
Abbreviation
USD
United
States
Dollar
Portfolio
Abbreviation
CMT
Constant
Maturity
Treasury
GO
General
Obligation
Bonds
LOC
Letter
of
Credit
RB
Revenue
Bonds
SOFR
Secured
Overnight
Financing
Rate
VRDN
Variable
Rate
Demand
Notes
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.
SHORTS-1/24-SAR
Item 2 – Code of Ethics – Not Applicable to this semi-annual report
Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 – Audit Committee of Listed Registrant – Not Applicable
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 – Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures.
Item 11 – Controls and Procedures
(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 –
Disclosure of Securities Lending Activities for Closed-End Management Investment
Companies
– Not Applicable
Item 13 – Recovery of Erroneously Awarded Compensation – Not Applicable
Item 14 – Exhibits attached hereto
(a)(1) Code of Ethics – Not Applicable to this semi-annual report
(a)(2) Section 302 Certifications are attached
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 –
Not Applicable
(a)(4) Change in Registrant’s independent public accountant –
Not Applicable
(b) Section 906 Certifications are attached
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
SMBy: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Funds
SMDate: March 22, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Funds
SMDate: March 22, 2024
By: /s/ Trent Walker
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Funds
SMDate: March 22, 2024