BlackRock Funds II NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-22061

Name of Fund:

BlackRock Funds II

BlackRock 20/80 Target Allocation Fund

BlackRock 40/60 Target Allocation Fund

BlackRock 60/40 Target Allocation Fund

BlackRock 80/20 Target Allocation Fund

Fund Address:

100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 09/30/2022

Date of reporting period: 09/30/2022

Item 1 – Report to Stockholders

(a) The Report to Shareholders is attached herewith.


		SEPTEMBER 30, 2022



		2022 Annual Report

BlackRock Funds II

BlackRock 20/80 Target Allocation Fund

BlackRock 40/60 Target Allocation Fund

BlackRock 60/40 Target Allocation Fund

BlackRock 80/20 Target Allocation Fund

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

The 12-month reporting period as of September 30, 2022 saw the emergence of significant challenges that disrupted the economic recovery and strong financial markets of 2021. The U.S. economy shrank in the first half of 2022, ending the run of robust growth that followed the reopening of global economies and the development of COVID-19 vaccines. Changes in consumer spending patterns and a tight labor market led to elevated inflation, which reached a 40-year high. Moreover, while the foremost effect of Russia’s invasion of Ukraine has been a severe humanitarian crisis, the ongoing war continued to present challenges for both investors and policymakers.

Equity prices fell as interest rates rose, particularly weighing on relatively high-valuation growth stocks and economically sensitive small-capitalization stocks. While both large- and small-capitalization U.S. stocks fell, declines for small-capitalization U.S. stocks were steeper. Both emerging market stocks and international equities from developed markets fell significantly, pressured by rising interest rates and a strengthening U.S. dollar.

The 10-year U.S. Treasury yield (which is inversely related to bond prices) rose notably during the reporting period as investors reacted to higher inflation and attempted to anticipate its impact on future interest rate changes. The corporate bond market also faced inflationary headwinds, and increasing uncertainty led to higher corporate bond spreads (the difference in yield between U.S. Treasuries and similarly-dated corporate bonds).

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation is proving more persistent than expected, raised interest rates five times while indicating that additional rate hikes were likely. Furthermore, the Fed wound down its bond-buying programs and is accelerating the reduction of its balance sheet. As investors attempted to assess the Fed’s future trajectory, the Fed’s statements late in the reporting period led markets to believe that additional tightening is likely in the near term.

The pandemic’s restructuring of the economy brought an ongoing mismatch between supply and demand, contributing to the current inflationary regime. While growth has slowed in 2022, we believe that taming inflation requires a more dramatic economic decline to bring demand back to a lower level that is more in line with the economy’s capacity. The Fed has been raising interest rates at the fastest pace in decades, and seems set to overtighten in its effort to get inflation back to target. With this in mind, we believe the possibility of a U.S. recession in the near-term is high, and the outlook for Europe and the U.K. is also troubling. Investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt to rapidly changing conditions.

In this environment, while we favor an overweight to equities in the long-term, the market’s concerns over excessive rate hikes from central banks moderate our outlook. Rising input costs and a deteriorating economic backdrop in China and Europe are likely to challenge corporate earnings, so we are underweight equities overall in the near term. However, we see better opportunities in credit, where higher spreads provide income opportunities and partially compensate for inflation risk. We believe that investment-grade corporates, local-currency emerging market debt, and inflation-protected bonds (particularly in Europe) offer strong opportunities for a six- to twelve-month horizon.

Overall, our view is that investors need to think globally, extend their scope across a broad array of asset classes, 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,

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC


Total Returns as of September 30, 2022

	6-Month	12-Month

U.S. large cap equities (S&P 500^® Index)	(20.20)%	(15.47)%

U.S. small cap equities (Russell 2000^® Index)	(19.01)	(23.50)

International equities (MSCI Europe, Australasia, Far East Index)	(22.51)	(25.13)

Emerging market equities (MSCI Emerging Markets Index)	(21.70)	(28.11)

3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)	0.58	0.63

U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)	(10.81)	(16.20)

U.S. investment grade bonds (Bloomberg U.S. Aggregate Bond Index)	(9.22)	(14.60)

Tax-exempt municipal bonds (Bloomberg Municipal Bond Index)	(6.30)	(11.50)

U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)	(10.42)	(14.15)
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.


2		T H I S P A G E I S N O T P A R T O F Y O U R F U N D R E P O R T

Table of Contents


	Page
The Markets in Review		2
Annual Report:
Fund Summary		4
About Fund Performance		13
Disclosure of Expenses		13
Financial Statements:
Schedules of Investments		14
Statements of Assets and Liabilities		30
Statements of Operations		32
Statements of Changes in Net Assets		33
Financial Highlights		35
Notes to Financial Statements		55
Report of Independent Registered Public Accounting Firm		66
Important Tax Information		67
Disclosure of Investment Advisory Agreement		69
Trustee and Officer Information		72
Additional Information		77
Glossary of Terms Used in this Report		79

LOGO


		3


Fund Summary as of September 30, 2022		BlackRock Target Allocation Funds

Portfolio Management Commentary

How did the Funds perform?

BlackRock 20/80 Target Allocation Fund

For the 12-month period ended September 30, 2022, all of the Fund’s share classes underperformed the reference benchmark MSCI All Country World Index (the “MSCI ACWI Index”) (14%)/MSCI USA Index (6%)/Bloomberg U.S. Universal Index (80%)) except for the Fund’s Institutional class and class K shares which outperformed. For the same period, all of the Fund’s share classes underperformed the Bloomberg U.S. Universal Index.

BlackRock 40/60 Target Allocation Fund

For the 12-month period ended September 30, 2022, all of the Fund’s share classes outperformed the reference benchmark (MSCI ACWI Index (28%)/MSCI USA Index (12%)/Bloomberg U.S. Universal Index (60%) except for the Fund’s Investor C class shares which underperformed. For the same period, all of the Fund’s share classes outperformed the MSCI ACWI Index.

BlackRock 60/40 Target Allocation Fund

For the 12-month period ended September 30, 2022, all of the Fund’s share classes outperformed the reference benchmark (MSCI ACWI Index (42%)/MSCI USA Index (18%)/Bloomberg U.S. Universal Index (40%)) except the Fund’s Investor C and R class shares which underperformed. For the same period, all of the Fund’s share classes outperformed the MSCI ACWI Index.

BlackRock 80/20 Target Allocation Fund

For the 12-month period ended September 30, 2022, all of the Fund’s share classes outperformed the reference benchmark (MSCI ACWI Index (56%)/MSCI USA Index (24%)/Bloomberg U.S. Universal Index (20%)) except for the Fund’s Investor C class shares which underperformed. For the same period, all of the Fund’s share classes outperformed the MSCI ACWI Index.

What factors influenced performance?

BlackRock 20/80 Target Allocation Fund

No aspects of portfolio positioning stood out as contributors. Allocations to U.S. investment-grade corporate bonds, agency residential mortgage-backed securities (MBS), U.S. equities and emerging market equities detracted.

BlackRock 40/60 Target Allocation Fund

Holdings in U.S. energy stocks contributed. Allocations to U.S. investment-grade corporate bonds, agency MBS, U.S. equities and emerging market equities detracted.

BlackRock 60/40 Target Allocation Fund

Positions in U.S. energy stocks, minimum-volatility stocks and the value style contributed. Allocations to technology stocks, U.S. equities, emerging market equities and U.S. investment-grade corporate bonds detracted.

BlackRock 80/20 Target Allocation Fund

Holdings in U.S. energy stocks, minimum-volatility stocks and the value style contributed. Positions in technology stocks, U.S. equities, developed market growth stocks, U.S. Treasuries and investment-grade corporate bonds detracted.

Describe recent portfolio activity.

The investment adviser adopted a defensive positioning by reducing the allocation to equities. In particular, the investment adviser decreased positions in the emerging markets and the technology sector. The investment adviser moved to a neutral positioning between value and growth, and reduced the Funds’ weightings in commodities and energy stocks following their strong performance. It also moved from underweight duration to neutral in response to the significant rise in yields. (Duration is a measure of interest rate sensitivity; prices and yields move in opposite directions.)

Describe the Funds’ positioning at period end.

The Funds were defensively positioned at the close of the period. Their allocations to stocks and bonds were approximately the same as those of their underlying benchmarks. The investment adviser sought to take minimal active risk given the challenging investment backdrop and elevated market volatility.

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


4		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S


Fund Summary as of September 30, 2022 (continued)		BlackRock 20/80 Target Allocation Fund

Investment Objective

BlackRock 20/80 Target Allocation Fund’s (the “Fund”) investment objective is to seek a balance between long term capital appreciation and high current income, with an emphasis on income.

GROWTH OF $10,000 INVESTMENT

LOGO

(a)

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

(b)

The Fund, which is a fund of funds, normally intends to obtain exposure to equity securities (and certain other instruments) in an amount equal to 20% of its assets and exposure to fixed-income securities in an amount equal to 80% of its assets. The Fund’s total returns prior to June 3, 2015 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Conservative Prepared Portfolio.”

(c)

A customized weighted index comprised of the returns of the MSCI ACWI Index (14%), MSCI USA Index (6%) and Bloomberg U.S. Universal Index (80%).

(d)

Bloomberg U.S. Universal Index (formerly Bloomberg Barclays U.S. Universal Index), an index that measures the performance of U.S. dollar-denominated taxable bonds that are rated either investment-grade or high yield. The index includes U.S. Treasury bonds, investment-grade and high yield U.S. corporate bonds, mortgage-backed securities, and Eurodollar bonds.

Performance


	Average Annual Total Returns^(a)(b)
	1 Year						5 Years						10 Years
	Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge
Institutional		(15.72	)%		N/A			1.38	%		N/A			3.74	%		N/A
Investor A		(16.06	)		(20.47	)%		1.03			(0.05	)%		3.37			2.82	%
Investor C		(16.64	)		(17.45	)		0.28			0.28			2.76			2.76
Class K		(15.70	)		N/A			1.40			N/A			3.75			N/A
Class R		(16.31	)		N/A			0.73			N/A			3.08			N/A
MSCI ACWI Index (14%)/MSCI USA Index (6%)/
Bloomberg U.S. Universal Index (80%)		(15.77	)		N/A			1.25			N/A			2.75			N/A
Bloomberg U.S. Universal Index		(14.92	)		N/A			(0.18	)		N/A			1.17			N/A

^(a)

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

^(b)

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

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.


F U N D S U M M A R Y		5


Fund Summary as of September 30, 2022 (continued)		BlackRock 20/80 Target Allocation Fund

Expense Example


	Actual						Hypothetical 5% Return
	Beginning Account Value (04/01/22)		Ending Account Value (09/30/22)		Expenses Paid During the Period^(a)		Beginning Account Value (04/01/22)		Ending Account Value (09/30/22)		Expenses Paid During the Period^(a)		Annualized Expense Ratio
Institutional	$	1,000.00	$	873.70	$	0.50	$	1,000.00	$	1,024.54	$	0.56		0.11	%
Investor A		1,000.00		871.80		2.09		1,000.00		1,022.83		2.28		0.45
Investor C		1,000.00		868.80		5.51		1,000.00		1,019.17		5.97		1.18
Class K		1,000.00		873.70		0.40		1,000.00		1,024.64		0.46		0.09
Class R		1,000.00		870.60		3.50		1,000.00		1,021.33		3.80		0.75

^(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 183/365 (to reflect the one-half year period shown). Because the Fund invests in master portfolios that are managed by subsidiaries of BlackRock, Inc. (the “Master Portfolios”), the expense example reflects the expenses of both the Fund and the Master Portfolios in which it invests. The fees and expenses of the underlying funds in which the Fund invests are not included in the Fund’s annualized expense ratios.

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

Portfolio Information

PORTFOLIO COMPOSITION


Asset Type	Percent of Total Investments
Fixed-Income Funds		79	%
Equity Funds		20
Short-Term Securities		1

TEN LARGEST HOLDINGS


Security	Percent of Total Investments
Master Total Return Portfolio		25	%
iShares Core Total USD Bond Market ETF		19
iShares Core S&P Total U.S. Stock Market ETF		9
iShares U.S. Treasury Bond ETF		9
BlackRock Strategic Income Opportunities Portfolio, Class K		9
iShares TIPS Bond ETF		6
iShares ESG Aware MSCI U.S.A. ETF		5
iShares 10-20 Year Treasury Bond ETF		4
iShares iBoxx $ Investment Grade Corporate Bond ETF		3
iShares Fallen Angels USD Bond ETF		3

The Fund’s allocation and holdings listed above are current as of the report date. However, the Fund is regularly monitored and its composition may vary throughout various periods.


6		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S


Fund Summary as of September 30, 2022		BlackRock 40/60 Target Allocation Fund

Investment Objective

BlackRock 40/60 Target Allocation Fund’s (the “Fund”) investment objective is to seek a balance between long term capital appreciation and high current income, with an emphasis on income.

GROWTH OF $10,000 INVESTMENT

LOGO

(a)

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

(b)

The Fund, which is a fund of funds, normally intends to obtain exposure to equity securities (and certain other instruments) in an amount equal to 40% of its assets and exposure to fixed-income securities in an amount equal to 60% of its assets. The Fund’s total returns prior to June 3, 2015 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Moderate Prepared Portfolio.”

(c)

A customized weighted index comprised of the returns of the MSCI ACWI Index (28%), MSCI USA Index (12%) and Bloomberg U.S. Universal Index (60%).

(d)

An index that captures large- and mid-cap representation across certain developed and emerging markets.

Performance


	Average Annual Total Returns^(a)(b)
	1 Year						5 Years						10 Years
	Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge
Institutional		(16.08	)%		N/A			3.05	%		N/A			5.45	%		N/A
Investor A		(16.31	)		(20.70	)%		2.71			1.61	%		5.10			4.53	%
Investor C		(16.93	)		(17.72	)		1.94			1.94			4.46			4.46
Class K		(16.06	)		N/A			3.07			N/A			5.47			N/A
Class R		(16.48	)		N/A			2.53			N/A			4.94			N/A
MSCI ACWI Index (28%)/MSCI USA Index (12%)/ Bloomberg U.S. Universal Index (60%)		(16.68	)		N/A			2.55			N/A			4.27			N/A
MSCI ACWI Index		(20.66	)		N/A			4.44			N/A			7.28			N/A

^(a)

^(b)

The Fund, which is a fund of funds, normally intends to obtain exposure to equity securities in an amount equal to 40% of its assets and exposure to fixed-income securities (and certain other instruments) in an amount equal to 60% of its assets. The Fund’s total returns prior to June 3, 2015 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Moderate Prepared Portfolio.”

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

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.


F U N D S U M M A R Y		7


Fund Summary as of September 30, 2022		BlackRock 40/60 Target Allocation Fund

Expense Example


	Actual						Hypothetical 5% Return
	Beginning Account Value (04/01/22)		Ending Account Value (09/30/22)		Expenses Paid During the Period^(a)		Beginning Account Value (04/01/22)		Ending Account Value (09/30/22)		Expenses Paid During the Period^(a)		Annualized Expense Ratio
Institutional	$	1,000.00	$	852.20	$	0.49	$	1,000.00	$	1,024.54	$	0.56		0.11	%
Investor A		1,000.00		851.40		2.07		1,000.00		1,022.83		2.28		0.45
Investor C		1,000.00		848.00		5.47		1,000.00		1,019.15		5.97		1.18
Class K		1,000.00		852.40		0.40		1,000.00		1,024.64		0.46		0.09
Class R		1,000.00		850.40		2.81		1,000.00		1,022.03		3.09		0.61

^(a)

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

Portfolio Information

PORTFOLIO COMPOSITION


Asset Type	Percent of Total Investments
Fixed-Income Funds		60	%
Equity Funds		39
Short-Term Securities		1

TEN LARGEST HOLDINGS


Security	Percent of Total Investments
Master Total Return Portfolio		25	%
iShares Core S&P Total U.S. Stock Market ETF		16
iShares Core Total USD Bond Market ETF		15
iShares ESG Aware MSCI U.S.A. ETF		10
BlackRock Strategic Income Opportunities Portfolio, Class K		5
iShares TIPS Bond ETF		5
iShares 10-20 Year Treasury Bond ETF		4
iShares MSCI EAFE Value ETF		3
iShares MSCI EAFE Growth ETF		3
iShares MSCI Emerging Markets Min Vol Factor ETF		3

The Fund’s allocation and holdings listed above are current as of the report date. However, the Fund is regularly monitored and its composition may vary throughout various periods.


8		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S


Fund Summary as of September 30, 2022		BlackRock 60/40 Target Allocation Fund

Investment Objective

BlackRock 60/40 Target Allocation Fund’s (the “Fund”) investment objective is to seek long term capital appreciation. Current income is also a consideration.

GROWTH OF $10,000 INVESTMENT

LOGO

(a)

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

(b)

The Fund, which is a fund of funds, normally intends to obtain exposure to equity securities (and certain other instruments) in an amount equal to 60% of its assets and exposure to fixed-income securities in an amount equal to 40% of its assets. The Fund’s total returns prior to June 3, 2015 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Growth Prepared Portfolio.”

(c)

A customized weighted index comprised of the returns of the MSCI ACWI Index (42%), MSCI USA Index (18%) and Bloomberg U.S. Universal Index (40%).

(d)

An index that captures large- and mid-cap representation across certain developed and emerging markets.

Performance


	Average Annual Total Returns^(a)(b)
	1 Year						5 Years						10 Years
	Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge
Institutional		(17.30	)%		N/A			4.11	%		N/A			6.73	%		N/A
Investor A		(17.56	)		(21.88	)%		3.76			2.65	%		6.36			5.79	%
Investor C		(18.18	)		(18.95	)		2.98			2.98			5.72			5.72
Class K		(17.29	)		N/A			4.13			N/A			6.74			N/A
Class R		(17.76	)		N/A			3.55			N/A			6.16			N/A
MSCI ACWI Index (42%)/MSCI USA Index (18%)/ Bloomberg U.S. Universal Index (40%)		(17.64	)		N/A			3.74			N/A			5.72			N/A
MSCI ACWI Index		(20.66	)		N/A			4.44			N/A			7.28			N/A

^(a)

^(b)

The Fund, which is a fund of funds, normally intends to obtain exposure to equity securities in an amount equal to 60% of its assets and exposure to fixed-income securities (and certain other instruments) in an amount equal to 40% of its assets. The Fund’s total returns prior to June 3, 2015 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Growth Prepared Portfolio.”

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

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.


F U N D S U M M A R Y		9


Fund Summary as of September 30, 2022		BlackRock 60/40 Target Allocation Fund

Expense Example


	Actual						Hypothetical 5% Return
	Beginning Account Value (04/01/22)		Ending Account Value (09/30/22)		Expenses Paid During the Period^(a)		Beginning Account Value (04/01/22)		Ending Account Value (09/30/22)		Expenses Paid During the Period^(a)		Annualized Expense Ratio
Institutional	$	1,000.00	$	831.60	$	0.46	$	1,000.00	$	1,024.56	$	0.51		0.10	%
Investor A		1,000.00		830.20		2.01		1,000.00		1,022.88		2.23		0.44
Investor C		1,000.00		827.30		5.40		1,000.00		1,019.16		5.97		1.18
Class K		1,000.00		831.60		0.37		1,000.00		1,024.66		0.41		0.08
Class R		1,000.00		829.20		2.89		1,000.00		1,021.91		3.19		0.63

^(a)

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

Portfolio Information

PORTFOLIO COMPOSITION


Asset Type	Percent of Total Investments
Equity Funds		60	%
Fixed-Income Funds		40
Short-Term Securities		—	^(a)

TEN LARGEST HOLDINGS


Security	Percent of Total Investments
iShares Core S&P Total U.S. Stock Market ETF		24	%
Master Total Return Portfolio		17
iShares ESG Aware MSCI U.S.A. ETF		14
iShares Core Total USD Bond Market ETF		9
iShares MSCI EAFE Value ETF		5
iShares MSCI EAFE Growth ETF		5
iShares MSCI Emerging Markets Min Vol Factor ETF		4
iShares 10-20 Year Treasury Bond ETF		4
BlackRock Strategic Income Opportunities Portfolio, Class K		3
iShares TIPS Bond ETF		3

^(a)

Amount is less than 1%.

The Fund’s allocation and holdings listed above are current as of the report date. However, the Fund is regularly monitored and its composition may vary throughout various periods.


10		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S


Fund Summary as of September 30, 2022		BlackRock 80/20 Target Allocation Fund

Investment Objective

BlackRock 80/20 Target Allocation Fund’s (the “Fund”) investment objective is to seek long term capital appreciation. Current income is not a consideration.

GROWTH OF $10,000 INVESTMENT

LOGO

(a)

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

(b)

The Fund, which is a fund of funds, normally intends to obtain exposure to equity securities (and certain other instruments) in an amount equal to 80% of its assets and exposure to fixed-income securities in an amount equal to 20% of its assets. The Fund’s total returns prior to June 3, 2015 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Aggressive Growth Prepared Portfolio.”

(c)

A customized weighted index comprised of the returns of the MSCI ACWI Index (56%), MSCI USA Index (24%) and Bloomberg U.S. Universal Index (20%).

(d)

An index that captures large- and mid-cap representation across certain developed and emerging markets.

Performance


	Average Annual Total Returns^(a)(b)
	1 Year						5 Years						10 Years
	Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge			Without Sales Charge			With Sales Charge
Institutional		(18.02	)%		N/A			5.20	%		N/A			7.92	%		N/A
Investor A		(18.32	)		(22.61	)%		4.84			3.72	%		7.54			6.96	%
Investor C		(18.92	)		(19.69	)		4.07			4.07			6.90			6.90
Class K		(18.05	)		N/A			5.22			N/A			7.93			N/A
Class R		(18.43	)		N/A			4.67			N/A			7.37			N/A
MSCI ACWI Index (56%)/MSCI USA Index (24%)/
Bloomberg U.S. Universal Index (20%)		(18.66	)		N/A			4.79			N/A			7.10			N/A
MSCI ACWI Index		(20.66	)		N/A			4.44			N/A			7.28			N/A

^(a)

^(b)

The Fund, which is a fund of funds, normally intends to obtain exposure to equity securities in an amount equal to 80% of its assets and exposure to fixed-income securities (and certain other instruments) in an amount equal to 20% of its assets. The Fund’s total returns prior to June 3, 2015 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Aggressive Growth Prepared Portfolio.”

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

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.


F U N D S U M M A R Y		11


Fund Summary as of September 30, 2022		BlackRock 80/20 Target Allocation Fund

Expense Example


	Actual						Hypothetical 5% Return
	Beginning Account Value (04/01/22)		Ending Account Value (09/30/22)		Expenses Paid During the Period^(a)		Beginning Account Value (04/01/22)		Ending Account Value (09/30/22)		Expenses Paid During the Period^(a)		Annualized Expense Ratio
Institutional	$	1,000.00	$	812.50	$	0.43	$	1,000.00	$	1,024.59	$	0.51		0.10	%
Investor A		1,000.00		811.30		1.98		1,000.00		1,022.88		2.23		0.44
Investor C		1,000.00		808.10		5.37		1,000.00		1,019.12		6.02		1.19
Class K		1,000.00		812.50		0.34		1,000.00		1,024.69		0.41		0.08
Class R		1,000.00		810.80		2.70		1,000.00		1,022.08		3.04		0.60

^(a)

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

Portfolio Information

PORTFOLIO COMPOSITION


Asset Type	Percent of Total Investments
Equity Funds		79	%
Fixed-Income Funds		20
Short-Term Securities		1

TEN LARGEST HOLDINGS


Security	Percent of Total Investments
iShares Core S&P Total U.S. Stock Market ETF		30	%
iShares ESG Aware MSCI U.S.A. ETF		19
Master Total Return Portfolio		10
iShares MSCI EAFE Value ETF		7
iShares MSCI EAFE Growth ETF		7
iShares MSCI Emerging Markets Min Vol Factor ETF		5
iShares Core Total USD Bond Market ETF		4
iShares TIPS Bond ETF		3
BlackRock Equity Dividend Fund, Class K		3
iShares Core S&P Small-Cap ETF		3

The Fund’s allocation and holdings listed above are current as of the report date. However, the Fund is regularly monitored and its composition may vary throughout various periods.


12		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

About Fund Performance

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. Class K Shares performance shown prior to the Class K Shares inception date of March 28, 2016 is that of Institutional Shares. The performance of each Fund’s Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.

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

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

Class R Shares are not subject to any sales charge. These shares are subject to a distribution fee of 0.25% per year and a service fee of 0.25% per year. These shares are available only to certain employer-sponsored retirement plans.

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 each 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 tables 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”), each Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver(s) and/or reimbursement(s), each Fund’s performance would have been lower. With respect to each 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 each 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.

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including administration fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense examples provide information about actual account values and actual expenses. 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 Fund and share class under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in these Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical examples are useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

A B O U T F U N D P E R F O R M A N C E / D I S C L O S U R E O F E X P E N S E S

Schedule of Investments

September 30, 2022

BlackRock 20/80 Target Allocation Fund

(Percentages shown are based on Net Assets)


Security	Shares/ Investment Value		Value

Investment Companies^(a)

Equity Funds — 20.1%
iShares Core S&P Total U.S. Stock Market ETF		536,945	$	42,708,605
iShares ESG Aware MSCI U.S.A. ETF		286,366		22,740,324
iShares GSCI Commodity Dynamic Roll Strategy ETF		124,394		4,443,354
iShares MSCI EAFE Growth ETF		116,639		8,463,326
iShares MSCI EAFE Value ETF		238,018		9,170,834
iShares MSCI Emerging Markets Min Vol Factor ETF		135,146		6,849,199


				94,375,642

Fixed-Income Funds — 80.2%
BlackRock Strategic Income Opportunities Portfolio, Class K		4,492,328		41,509,114
iShares 10-20 Year Treasury Bond ETF		187,897		20,471,378
iShares Convertible Bond ETF		72,851		5,019,434
iShares Core Total USD Bond Market ETF		1,993,180		88,696,510
iShares Fallen Angels USD Bond ETF		507,300		12,124,470
iShares iBoxx $ Investment Grade Corporate Bond ETF^(b)		158,144		16,201,853
iShares TIPS Bond ETF		292,421		30,674,963
iShares U.S. Treasury Bond ETF		1,865,857		42,466,905
Master Total Return Portfolio	$	118,879,807		118,879,807


				376,044,434


Total Long-Term Investments — 100.3% (Cost: $526,641,814)				470,420,076


Security	Shares		Value

Short-Term Securities^(a)(c)

Money Market Funds — 1.1%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 2.79%		240,443	$	240,443
SL Liquidity Series, LLC, Money Market Series, 3.29%^(d)		5,145,041		5,145,041


Total Short-Term Securities — 1.1% (Cost: $5,385,484)				5,385,484


Total Investments — 101.4% (Cost: $532,027,298)				475,805,560

Liabilities in Excess of Other Assets — (1.4)%				(6,557,409	)


Net Assets — 100.0%			$	469,248,151

^(a)	Affiliate of the Fund.

^(b)	All or a portion of this security is on loan.

^(c)	Annualized 7-day yield as of period end.

^(d)	All or a portion of this security was purchased with the cash collateral from loaned securities.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended September 30, 2022 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds

BlackRock Emerging Markets Fund, Inc., Class K^(a)	$	6,139,898	$	719,818	$	(5,281,940	)	$	231,998		$	(1,809,774	)	$	—		—	$	28,388	$	54,768
BlackRock Equity Dividend Fund, Class K^(a)		—		5,823,610		(5,361,641	)		(461,969	)		—			—		—		23,669		368,730
BlackRock Liquidity Funds, T-Fund, Institutional Class		1,287,768		—		(1,047,325	)^(b)		—			—			240,443		240,443		2,671		—
BlackRock Strategic Income Opportunities Portfolio, Class K		77,303,592		46,667,451		(78,620,004	)		2,301,422			(6,143,347	)		41,509,114		4,492,328		987,060		497,264


14		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued)

September 30, 2022

BlackRock 20/80 Target Allocation Fund

Affiliates (continued)


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds
BlackRock Technology Opportunities Fund, Class K^(a)	$	5,708,666	$	760,229	$	(5,118,490	)	$	(1,608,734	)	$	258,329		$	—		—	$	—	$	202,796
iShares 10- 20 Year Treasury Bond ETF		—		25,160,514		(2,057,277	)		(68,654	)		(2,563,205	)		20,471,378		187,897		191,603		—
iShares Convertible Bond ETF		—		9,527,426		(3,333,759	)		(337,579	)		(836,654	)		5,019,434		72,851		69,427		—
iShares Core S&P Small- Cap ETF^(a)		6,534,585		649,335		(6,396,362	)		1,471,325			(2,258,883	)		—		—		57,024		—
iShares Core S&P Total U.S. Stock Market ETF		29,771,854		30,907,406		(7,821,447	)		(1,057,586	)		(9,091,622	)		42,708,605		536,945		674,374		—
iShares Core Total USD Bond Market ETF		79,580,170		102,469,973		(70,485,664	)		(9,480,239	)		(13,387,730	)		88,696,510		1,993,180		2,307,362		—
iShares ESG Aware MSCI U.S.A. ETF		37,532,558		4,335,591		(12,299,146	)		(1,734,548	)		(5,094,131	)		22,740,324		286,366		451,767		—
iShares Fallen Angels USD Bond ETF		57,622,380		22,180,910		(56,043,052	)		(7,722,252	)		(3,913,516	)		12,124,470		507,300		1,990,448		—
iShares Global Financials ETF^(a)		5,545,081		27,201		(5,899,775	)		229,259			98,234			—		—		—		—
iShares GSCI Commodity Dynamic Roll Strategy ETF		22,147,149		1,304,376		(20,790,257	)		3,271,101			(1,489,015	)		4,443,354		124,394		1,846,056		—


S C H E D U L E S O F I N V E S T M E N T S		15

Schedule of Investments (continued)

September 30, 2022

BlackRock 20/80 Target Allocation Fund

Affiliates (continued)


Affiliated Issuer	Value at 09/30/21		Purchases at Cost			Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)			Capital Gain Distributions from Underlying Funds
iShares iBoxx $ Investment Grade Corporate Bond ETF	$	—	$	18,544,477		$	(699,140	)	$	(20,215	)	$	(1,623,269	)	$	16,201,853		158,144	$	93,585		$	—
iShares MSCI EAFE Growth ETF		13,879,323		3,568,801			(4,709,217	)		(1,009,148	)		(3,266,433	)		8,463,326		116,639		199,587			—
iShares MSCI EAFE Value ETF		15,270,560		2,014,878			(4,668,036	)		(608,589	)		(2,837,979	)		9,170,834		238,018		777,640			—
iShares MSCI Emerging Markets Min Vol Factor ETF		—		8,359,815			(609,380	)		(23,322	)		(877,914	)		6,849,199		135,146		38,687			—
iShares MSCI U.S.A. Value Factor ETF^(a)		9,240,635		574,683			(10,172,982	)		3,258,321			(2,900,657	)		—		—		51,257			—
iShares TIPS Bond ETF		37,713,497		48,496,896			(47,788,026	)		(2,512,702	)		(5,234,702	)		30,674,963		292,421		2,912,410			—
iShares U.S. Treasury Bond ETF		41,766,179		21,106,226			(14,597,035	)		(1,168,239	)		(4,640,226	)		42,466,905		1,865,857		461,109			—
Master Total Return Portfolio		149,124,812		—			(2,500,309	)^(b)(c)		(9,584,438	)		(18,160,258	)		118,879,807	$	118,879,807		3,842,277			—
SL Liquidity Series, LLC, Money Market Series		—		5,144,142	^(b)		—			899			—			5,145,041		5,145,041		18,662	^(d)		—

									$	(26,633,889	)	$	(85,772,752)		$	475,805,560			$	17,025,063		$	1,123,558

^(a)

As of period end, the entity is no longer held.

^(b)

Represents net amount purchased (sold).

^(c)

Inclusive of income and expense allocated from the Master Portfolio.

^(d)

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.


16		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued)

September 30, 2022

BlackRock 20/80 Target Allocation Fund

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.


	Level 1		Level 2		Level 3		Total
Assets
Investments
Long-Term Investments
Investment Companies	$	351,540,269	$	—	$	—	$	351,540,269
Short-Term Securities
Money Market Funds		240,443		—		—		240,443

	$	351,780,712	$	—	$	—		351,780,712

Investments valued at NAV^(a)								124,024,848

							$	475,805,560

^(a)

Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

See notes to financial statements.


S C H E D U L E S O F I N V E S T M E N T S		17

Schedule of Investments

September 30, 2022

BlackRock 40/60 Target Allocation Fund

(Percentages shown are based on Net Assets)


Security	Shares/ Investment Value		Value

Investment Companies^(a)

Equity Funds — 39.9%
BlackRock Equity Dividend Fund, Class K		330,425	$	5,646,958
iShares Core S&P Small-Cap ETF		97,127		8,468,503
iShares Core S&P Total U.S. Stock Market ETF		1,206,984		96,003,507
iShares ESG Aware MSCI U.S.A. ETF		751,032		59,639,451
iShares GSCI Commodity Dynamic Roll Strategy ETF		158,327		5,655,441
iShares MSCI EAFE Growth ETF		250,740		18,193,694
iShares MSCI EAFE Value ETF		520,582		20,058,025
iShares MSCI Emerging Markets Min Vol Factor ETF		337,887		17,124,113


				230,789,692

Fixed-Income Funds — 60.1%
BlackRock Strategic Income Opportunities Portfolio, Class K		3,287,599		30,377,418
iShares 10-20 Year Treasury Bond ETF		232,645		25,346,673
iShares Convertible Bond ETF		91,020		6,271,278
iShares Core Total USD Bond Market ETF		1,916,326		85,276,507
iShares Fallen Angels USD Bond ETF^(b)		633,782		15,147,390
iShares iBoxx $Investment Grade Corporate Bond ETF		56,063		5,743,654
iShares TIPS Bond ETF		252,243		26,460,291
iShares U.S. Treasury Bond ETF		261,767		5,957,817
Master Total Return Portfolio	$	147,718,107		147,718,107


				348,299,135


Total Long-Term Investments — 100.0% (Cost: $624,797,049)				579,088,827


Security	Shares		Value

Short-Term Securities^(a)(c)

Money Market Funds — 0.8%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 2.79%		968,485	$	968,485
SL Liquidity Series, LLC, Money Market Series, 3.29%^(d)		3,723,165		3,723,165


Total Short-Term Securities — 0.8% (Cost: $4,691,441)				4,691,650


Total Investments — 100.8% (Cost: $629,488,490)				583,780,477

Liabilities in Excess of Other Assets — (0.8)%				(4,629,140	)


Net Assets — 100.0%			$	579,151,337

^(a)	Affiliate of the Fund.

^(b)	All or a portion of this security is on loan.

^(c)	Annualized 7-day yield as of period end.

^(d)	All or a portion of this security was purchased with the cash collateral from loaned securities.

Affiliates


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds
BlackRock Emerging Markets Fund, Inc., Class K^(a)	$	14,084,978	$	2,422,115	$	(12,896,242	)	$	493,787		$	(4,104,638	)	$	—		—	$	65,074	$	125,545
BlackRock Equity Dividend Fund, Class K		—		10,758,998		(3,673,862	)		(362,744	)		(1,075,434	)		5,646,958		330,425		43,367		675,588
BlackRock Liquidity Funds, T-Fund, Institutional Class		1,810,828		—		(842,343	)^(b)		—			—			968,485		968,485		5,858		—


18		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued)

September 30, 2022

BlackRock 40/60 Target Allocation Fund

Affiliates (continued)


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds
BlackRock Strategic Income Opportunities Portfolio, Class K	$	52,740,421	$	37,187,863		$ (57,363,186	)	$	2,718,682		$	(4,906,362	)	$	30,377,418		3,287,599	$	582,704	$	206,853
BlackRock Technology Opportunities Fund^(a)		13,550,402		1,541,059		(11,324,057	)		(4,374,575	)		607,171			—		—		—		380,742
iShares 10- 20 Year Treasury Bond ETF		—		31,128,813		(2,554,237	)		(62,086	)		(3,165,817	)		25,346,673		232,645		232,430		—
iShares Convertible Bond ETF		—		11,256,831		(3,913,484	)		(466,549	)		(605,520	)		6,271,278		91,020		73,025		—
iShares Core S&P Small- Cap ETF		15,127,947		11,243,841		(15,117,846	)		1,508,039			(4,293,478	)		8,468,503		97,127		169,710		—
iShares Core S&P Total U.S. Stock Market ETF		70,756,667		61,517,811		(13,640,218	)		(2,059,254	)		(20,571,499	)		96,003,507		1,206,984		1,507,265		—
iShares Core Total USD Bond Market ETF		63,040,526		99,358,588		(58,262,053	)		(7,754,716	)		(11,105,838	)		85,276,507		1,916,326		1,865,419		—
iShares ESG Aware MSCI U.S.A. ETF		79,264,041		10,814,342		(14,593,935	)		(1,999,369	)		(13,845,628	)		59,639,451		751,032		1,047,847		—
iShares Fallen Angels USD Bond ETF		42,219,308		26,236,802		(44,514,579	)		(4,685,406	)		(4,108,735	)		15,147,390		633,782		1,563,581		—
iShares Global Financials ETF^(a)		13,462,334		1,116,237		(14,972,113	)		162,616			230,926			—		—		153,132		—


S C H E D U L E S O F I N V E S T M E N T S		19

Schedule of Investments (continued)

September 30, 2022

BlackRock 40/60 Target Allocation Fund

Affiliates (continued)


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds
iShares GSCI Commodity Dynamic Roll Strategy ETF	$	26,679,690	$	6,917,936		$ (30,506,850	)	$	4,298,523		$	(1,733,858	)	$	5,655,441		158,327	$	2,741,369	$	—
iShares iBoxx $ Investment Grade Corporate Bond ETF		—		6,402,223		(77,944	)		(5,715	)		(574,910	)		5,743,654		56,063		32,321		—
iShares MSCI EAFE Growth ETF		33,976,387		9,287,486		(15,550,009	)		(1,983,468	)		(7,536,702	)		18,193,694		250,740		447,781		—
iShares MSCI EAFE Value ETF		39,579,962		6,432,507		(17,731,919	)		(2,290,506	)		(5,932,019	)		20,058,025		520,582		1,896,042		—
iShares MSCI Emerging Markets Min Vol Factor ETF		—		20,771,463		(1,369,924	)		(87,888	)		(2,189,538	)		17,124,113		337,887		95,917		—
iShares MSCI U.S.A. Value Factor ETF^(a)		18,188,535		1,694,806		(20,057,842	)		5,696,182			(5,521,681	)		—		—		166,098		—
iShares S&P Small- Cap 600 Value ETF^(a)		—		9,938,965		(9,715,179	)		(223,786	)		—			—		—		29,586		—
iShares TIPS Bond ETF		35,142,076		34,384,331		(36,385,277	)		(1,819,189	)		(4,861,650	)		26,460,291		252,243		2,492,784		—
iShares U.S. Energy ETF^(a)		10,304,472		1,280,903		(16,629,702	)		5,877,855			(833,528	)		—		—		193,777		—
iShares U.S. Infrastructure ETF^(a)		—		6,699,843		(6,386,904	)		(312,939	)		—			—		—		17,549		—
iShares U.S. Treasury Bond ETF		—		6,364,663		(78,696	)		(3,385	)		(324,765	)		5,957,817		261,767		19,003		—


20		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued)

September 30, 2022

BlackRock 40/60 Target Allocation Fund

Affiliates (continued)



Affiliated Issuer	Value at 09/30/21		Purchases at Cost			Proceeds from Sale		Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)			Capital Gain Distributions from Underlying Funds

Master Total Return Portfolio	$	176,681,244	$	4,424,795	^(b)(c)	$	—	$	(11,593,405	)	$	(21,794,527	)	$	147,718,107	$	147,718,107	$	4,632,793		$	—
SL Liquidity Series, LLC, Money Market Series		3,617,141		99,407	^(b)		—		6,408			209			3,723,165		3,723,165		23,458	^(d)		—

								$	(19,322,888	)	$	(118,247,821	)	$	583,780,477			$	20,097,890		$	1,388,728

^(a)

As of period end, the entity is no longer held.

^(b)

Represents net amount purchased (sold).

^(c)

Inclusive of income and expense allocated from the Master Portfolio.

^(d)

Fair Value Hierarchy as of Period End



	Level 1		Level 2		Level 3		Total

Assets
Investments
Long-Term Investments
Investment Companies	$	431,370,720	$	—	$	—	$	431,370,720
Short-Term Securities
Money Market Funds		968,485		—		—		968,485

	$	432,339,205	$	—	$	—		432,339,205

Investments valued at NAV^(a)								151,441,272

							$	583,780,477

^(a)

Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

See notes to financial statements.


S C H E D U L E S O F I N V E S T M E N T S		21

Schedule of Investments

September 30, 2022

BlackRock 60/40 Target Allocation Fund

(Percentages shown are based on Net Assets)


Security	Shares/ Investment Value		Value

Investment Companies^(a)

Equity Funds — 59.7%
BlackRock Equity Dividend Fund, Class K		1,434,760	$	24,520,041
iShares Core S&P Small-Cap ETF		261,231		22,776,731
iShares Core S&P Total U.S. Stock Market ETF		3,444,101		273,943,793
iShares ESG Aware MSCI U.S.A. ETF		2,041,973		162,153,076
iShares GSCI Commodity Dynamic Roll Strategy ETF		328,362		11,729,091
iShares MSCI EAFE Growth ETF		814,223		59,080,021
iShares MSCI EAFE Value ETF		1,644,328		63,355,958
iShares MSCI Emerging Markets Min Vol Factor ETF		920,823		46,667,310
iShares MSCI U.S.A. Min Vol Factor ETF		326,246		21,564,860
iShares U.S. Infrastructure ETF		350,556		11,301,925


				697,092,806

Fixed-Income Funds — 40.2%
BlackRock Strategic Income Opportunities Portfolio, Class K		4,033,640		37,270,836
iShares 10-20 Year Treasury Bond ETF		422,785		46,062,426
iShares Convertible Bond ETF		186,496		12,849,574
iShares Core Total USD Bond Market ETF		2,304,462		102,548,559
iShares Fallen Angels USD Bond ETF		1,272,274		30,407,349
iShares TIPS Bond ETF		346,521		36,350,053
Master Total Return Portfolio	$	204,316,835		204,316,835


				469,805,632


Total Long-Term Investments — 99.9% (Cost: $1,218,683,941)				1,166,898,438


Security	Shares		Value

Short-Term Securities^(a)(b)

Money Market Funds — 0.2%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 2.79%		1,908,909	$	1,908,909


Total Short-Term Securities — 0.2% (Cost: $1,908,909)				1,908,909


Total Investments — 100.1% (Cost: $1,220,592,850)				1,168,807,347
Liabilities in Excess of Other Assets — (0.1)%				(765,577	)


Net Assets — 100.0%			$	1,168,041,770

^(a)	Affiliate of the Fund.

^(b)	Annualized 7-day yield as of period end.

Affiliates


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds
BlackRock Emerging Markets Fund, Inc., Class K^(a)	$	44,041,303	$	15,125,952	$	(49,899,414	)	$	�� 3,476,158		$	(12,743,999	)	$	—		—	$	153,417	$	295,981
BlackRock Equity Dividend Fund, Class K		—		33,982,560		(4,248,892	)		(418,444	)		(4,795,183	)		24,520,041		1,434,760		136,176		2,121,407
BlackRock Liquidity Funds, T-Fund, Institutional Class		2,066,380		—		(157,471	)^(b)		—			—			1,908,909		1,908,909		15,735		—
BlackRock Strategic Income Opportunities Portfolio, Class K		26,293,146		39,714,377		(26,949,192	)		(205,378	)		(1,582,117	)		37,270,836		4,033,640		500,273		—


22		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued)

September 30, 2022

BlackRock 60/40 Target Allocation Fund

Affiliates (continued)


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds
BlackRock Technology Opportunities Fund, Class K^(a)	$	42,548,773	$	4,236,303	$	(35,876,872	)	$	(6,824,438	)	$	(4,083,766	)	$	—		—	$	—	$	1,167,851
iShares 10-20 Year Treasury Bond ETF		—		57,157,139		(1,335,252	)		(215,615	)		(9,543,846	)		46,062,426		422,785		561,442		—
iShares Convertible Bond ETF		—		19,618,095		(6,163,099	)		(18,144	)		(587,278	)		12,849,574		186,496		95,874		—
iShares Core S&P Small-Cap ETF		47,274,684		30,117,474		(46,824,391	)		6,645,775			(14,436,811	)		22,776,731		261,231		503,009		—
iShares Core S&P Total U.S. Stock Market ETF		183,205,007		162,528,044		(9,833,593	)		(1,099,488	)		(60,856,177	)		273,943,793		3,444,101		4,157,585		—
iShares Core Total USD Bond Market ETF		96,247,379		156,722,474		(129,997,325	)		(14,867,094	)		(5,556,875	)		102,548,559		2,304,462		1,993,545		—
iShares ESG Aware MSCI U.S.A. ETF		206,222,008		25,904,136		(27,981,474	)		(4,328,413	)		(37,663,181	)		162,153,076		2,041,973		2,744,530		—
iShares Fallen Angels USD Bond ETF		27,358,819		45,983,049		(33,148,015	)		(2,361,421	)		(7,425,083	)		30,407,349		1,272,274		1,695,373		—
iShares Global Financials ETF^(a)		34,722,676		2,184,872		(36,630,309	)		(904,250	)		627,011			—		—		379,566		—
iShares GSCI Commodity Dynamic Roll Strategy ETF		42,606,269		12,603,734		(47,970,895	)		7,183,326			(2,693,343	)		11,729,091		328,362		5,152,464		—


S C H E D U L E S O F I N V E S T M E N T S		23

Schedule of Investments (continued)

September 30, 2022

BlackRock 60/40 Target Allocation Fund

Affiliates (continued)


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds
iShares MSCI EAFE Growth ETF	$	95,453,656	$	33,541,459	$	(42,986,650	)	$	(4,622,877	)	$	(22,305,567	)	$	59,080,021		814,223	$	1,223,462	$	—
iShares MSCI EAFE Value ETF		105,343,148		14,651,885		(32,992,374	)		(4,904,943	)		(18,741,758	)		63,355,958		1,644,328		5,287,260		—
iShares MSCI Emerging Markets Min Vol Factor ETF		—		53,216,909		(600,910	)		(23,954	)		(5,924,735	)		46,667,310		920,823		241,033		—
iShares MSCI U.S.A. Min Vol Factor ETF		—		25,712,354		(753,025	)		(41,345	)		(3,353,124	)		21,564,860		326,246		315,834		—
iShares MSCI U.S.A. Value Factor ETF^(a)		50,197,339		3,683,407		(54,417,697	)		14,507,409			(13,970,458	)		—		—		453,983		—
iShares S&P Small- Cap 600 Value ETF^(a)		—		49,616,451		(49,135,901	)		(480,550	)		—			—		—		74,599		—
iShares TIPS Bond ETF		58,730,632		58,357,743		(71,747,592	)		(4,888,106	)		(4,102,624	)		36,350,053		346,521		3,479,735		—
iShares U.S. Energy ETF^(a)		22,223,494		2,475,291		(32,573,604	)		9,850,396			(1,975,577	)		—		—		561,156		—
iShares U.S. Infrastructure ETF		—		12,982,358		(150,328	)		(7,493	)		(1,522,612	)		11,301,925		350,556		110,974		—


24		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued)

September 30, 2022

BlackRock 60/40 Target Allocation Fund

Affiliates (continued)


Affiliated Issuer	Value at 09/30/21		Purchases at Cost			Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)			Capital Gain Distributions from Underlying Funds
Master Total Return Portfolio	$	224,142,521	$	23,540,383	^(b)(c)	$	—		$	(15,142,113	)	$	(28,223,956	)	$	204,316,835	$	204,316,835	$	6,022,125		$	—
SL Liquidity Series, LLC, Money Market Series^(a)		435,999		—			(435,784	)^(b)		(215	)		—			—		—		7,623	^(d)		—

									$	(19,691,217	)	$	(261,461,059	)	$	1,168,807,347			$	35,866,773		$	3,585,239

^(a)

As of period end, the entity is no longer held.

^(b)

Represents net amount purchased (sold).

^(c)

Inclusive of income and expense allocated from the Master Portfolio.

^(d)

Fair Value Hierarchy as of Period End



	Level 1		Level 2		Level 3		Total

Assets
Investments
Long-Term Investments
Investment Companies	$	962,581,603	$	—	$	—	$	962,581,603
Short-Term Securities
Money Market Funds		1,908,909		—		—		1,908,909

	$	964,490,512	$	—	$	—		964,490,512

Investments valued at NAV^(a)								204,316,835

							$	1,168,807,347

^(a)

Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

See notes to financial statements.


S C H E D U L E S O F I N V E S T M E N T S		25

Schedule of Investments

September 30, 2022

BlackRock 80/20 Target Allocation Fund

(Percentages shown are based on Net Assets)


Security	Shares/ Investment Value		Value


Investment Companies^(a)

Equity Funds — 80.2%
BlackRock Equity Dividend Fund, Class K		1,347,978	$	23,036,943
iShares Core S&P Small-Cap ETF		261,041		22,760,165
iShares Core S&P Total U.S. Stock Market ETF		3,503,063		278,633,631
iShares ESG Aware MSCI U.S.A. ETF		2,251,945		178,826,952
iShares GSCI Commodity Dynamic Roll Strategy ETF		253,646		9,060,235
iShares MSCI EAFE Growth ETF		895,005		64,941,563
iShares MSCI EAFE Value ETF		1,765,462		68,023,251
iShares MSCI Emerging Markets Min Vol Factor ETF		995,261		50,439,828
iShares MSCI U.S.A. Min Vol Factor ETF		332,651		21,988,231
iShares U.S. Energy ETF^(b)		285,916		11,239,358
iShares U.S. Infrastructure ETF		301,033		9,705,304


				738,655,461

Fixed-Income Funds — 19.6%
iShares 10-20 Year Treasury Bond ETF		168,559		18,364,503
iShares Convertible Bond ETF		146,697		10,107,423
iShares Core Total USD Bond Market ETF		837,984		37,290,288
iShares TIPS Bond ETF		271,756		28,507,204
Master Total Return Portfolio	$	85,665,964		85,665,964


				179,935,382


Total Long-Term Investments — 99.8% (Cost: $967,998,976)				918,590,843


Security	Shares		Value


Short-Term Securities^(a)(c)

Money Market Funds — 1.4%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 2.79%		2,047,978	$	2,047,978
SL Liquidity Series, LLC, Money Market Series, 3.29%^(d)		10,902,600		10,902,600


Total Short-Term Securities — 1.4% (Cost: $12,950,578)				12,950,578


Total Investments — 101.2% (Cost: $980,949,554)				931,541,421

Liabilities in Excess of Other Assets — (1.2)%				(10,700,886	)


Net Assets — 100.0%			$	920,840,535

^(a)	Affiliate of the Fund.

^(b)	All or a portion of this security is on loan.

^(c)	Annualized 7-day yield as of period end.

^(d)	All or a portion of this security was purchased with the cash collateral from loaned securities.

Affiliates


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds
BlackRock Emerging Markets Fund, Inc., Class K^(a)	$	33,253,162	$	16,739,656	$	(41,440,144	)	$	1,014,856		$	(9,567,530	)	$	—		—	$	146,393	$	282,430
BlackRock Equity Dividend Fund, Class K		—		35,408,047		(7,697,463	)		(749,904	)		(3,923,737	)		23,036,943		1,347,978		129,650		2,019,755
BlackRock Liquidity Funds, T-Fund, Institutional Class		2,168,164		—		(120,186	)^(b)		—			—			2,047,978		2,047,978		24,453		—
BlackRock Technology Opportunities Fund, Class K^(a)		32,454,805		8,002,321		(31,183,198	)		(3,318,104	)		(5,955,824	)		—		—		—		958,541


26		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued)

September 30, 2022

BlackRock 80/20 Target Allocation Fund

Affiliates (continued)


Affiliated Issuer	Value at 09/30/21		Purchases at Cost		Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)		Capital Gain Distributions from Underlying Funds
iShares 10- 20 Year Treasury Bond ETF	$	—	$	23,974,234	$	(846,971	)	$	(87,845)		$	(4,674,915	)	$	18,364,503		168,559	$	292,361	$	—
iShares Convertible Bond ETF		—		14,657,831		(4,113,417	)		(11,451	)		(425,540	)		10,107,423		146,697		65,834		—
iShares Core S&P Small- Cap ETF		33,720,274		35,364,356		(39,295,579	)		1,869,656			(8,898,542	)		22,760,165		261,041		430,193		—
iShares Core S&P Total U.S. Stock Market ETF		140,588,168		210,362,878		(14,339,160	)		(1,337,498	)		(56,640,757	)		278,633,631		3,503,063		3,694,682		—
iShares Core Total USD Bond Market ETF		29,263,366		41,585,430		(29,781,431	)		(323,507	)		(3,453,570	)		37,290,288		837,984		359,094		—
iShares ESG Aware MSCI U.S.A. ETF		153,674,103		80,940,617		(15,459,022	)		(1,853,655	)		(38,475,091	)		178,826,952		2,251,945		2,502,641		—
iShares Global Financials ETF^(a)		29,361,246		5,102,279		(34,609,710	)		(366,624	)		512,809			—		—		324,565		—
iShares GSCI Commodity Dynamic Roll Strategy ETF		8,253,450		19,482,672		(20,651,214	)		2,018,325			(42,998	)		9,060,235		253,646		2,662,841		—
iShares MSCI EAFE Growth ETF		74,225,774		54,637,955		(38,910,266	)		(5,124,150	)		(19,887,750	)		64,941,563		895,005		1,133,504		—
iShares MSCI EAFE Value ETF		78,770,261		42,807,585		(32,286,266	)		(4,441,101	)		(16,827,228	)		68,023,251		1,765,462		4,704,712		—


S C H E D U L E S O F I N V E S T M E N T S		27

Schedule of Investments (continued)

September 30, 2022

BlackRock 80/20 Target Allocation Fund

Affiliates (continued)


Affiliated Issuer	Value at 09/30/21		Purchases at Cost			Proceeds from Sale			Net Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Value at 09/30/22		Shares/ Investment Value Held at 09/30/22		Income (Expense)			Capital Gain Distributions from Underlying Funds
iShares MSCI Emerging Markets Min Vol Factor ETF	$	—	$	56,739,712		$	(605,116	)	$	(10,106)		$	(5,684,662	)	$	50,439,828		995,261	$	224,020		$	—
iShares MSCI U.S.A. Min Vol Factor ETF		—		31,058,075			(6,034,343	)		(339,627	)		(2,695,874	)		21,988,231		332,651		250,415			—
iShares MSCI U.S.A. Value Factor ETF^(a)		36,385,226		8,309,776			(44,882,126	)		9,743,816			(9,556,692	)		—		—		402,901			—
iShares S&P Small- Cap 600 Value ETF		—		21,555,592			(21,153,749	)		(401,843	)		—			—		—		63,580			—
iShares TIPS Bond ETF		15,117,730		22,250,631			(4,087,172	)		(455,272	)		(4,318,713	)		28,507,204		271,756		1,634,025			—
iShares U.S. Energy ETF		21,581,540		11,202,263			(30,776,454	)		7,803,851			1,428,158			11,239,358		285,916		731,739			—
iShares U.S. Infrastructure ETF		—		14,585,663			(3,518,739	)		(165,596	)		(1,196,024	)		9,705,304		301,033		93,785			—
Master Total Return Portfolio		69,626,280		31,996,720	^(b)(c)		—			(5,508,969	)		(10,448,067	)		85,665,964	$	85,665,964		2,208,492			—
SL Liquidity Series, LLC, Money Market Series		—		10,902,600	^(b)		—			—			—			10,902,600		10,902,600		5,310	^(d)		—

									$	(2,044,748)		$	(200,732,547)		$	931,541,421			$	22,085,190		$	3,260,726

^(a) As of period end, the entity is no longer held. ^(b) Represents net amount purchased (sold). ^(c) Inclusive of income and expense allocated from the Master Portfolio. ^(d) All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.


28		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Schedule of Investments (continued)

September 30, 2022

BlackRock 80/20 Target Allocation Fund

Fair Value Hierarchy as of Period End



	Level 1		Level 2		Level 3		Total

Assets
Investments
Long-Term Investments
Investment Companies	$	832,924,879	$	—	$	—	$	832,924,879
Short-Term Securities
Money Market Funds		2,047,978		—		—		2,047,978

	$	834,972,857	$	—	$	—		834,972,857

Investments valued at NAV^(a)								96,568,564

							$	931,541,421

^(a) Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

See notes to financial statements.


S C H E D U L E S O F I N V E S T M E N T S		29

Statements of Assets and Liabilities

September 30, 2022


	BlackRock 20/80 Target Allocation Fund			BlackRock 40/60 Target Allocation Fund			BlackRock 60/40 Target Allocation Fund			BlackRock 80/20 Target Allocation Fund

ASSETS
Investments, at value — affiliated^(a)(b)	$	475,805,560		$	583,780,477		$	1,168,807,347		$	931,541,421
Receivables:
Securities lending income — affiliated		4,536			3,255			808			849
Capital shares sold		264,610			367,374			589,001			1,223,851
Dividends — affiliated		105,761			78,913			99,806			12,975
From the Manager		25,762			52,232			88,014			99,112
Prepaid expenses		32,329			30,665			36,862			49,273

Total assets		476,238,558			584,312,916			1,169,621,838			932,927,481


LIABILITIES
Bank overdraft		769			—			—			—
Collateral on securities loaned		5,144,193			3,722,400			—			10,902,600
Payables:
Investments purchased		104,939			76,580			93,310			189,162
Administration fees		9,205			21,971			90,018			49,729
Capital shares redeemed		1,454,639			1,007,911			840,233			530,384
Trustees’ and Officer’s fees		2,639			2,788			3,820			3,098
Other accrued expenses		63,178			52,082			81,143			54,392
Other affiliate fees		4,090			4,906			23,808			6,235
Service and distribution fees		96,778			121,570			191,216			110,425
Transfer agent fees		109,977			151,371			256,520			240,921

Total liabilities		6,990,407			5,161,579			1,580,068			12,086,946

NET ASSETS	$	469,248,151		$	579,151,337		$	1,168,041,770		$	920,840,535


NET ASSETS CONSIST OF:
Paid-in capital	$	543,637,518		$	636,057,173		$	1,231,780,693		$	961,603,687
Accumulated loss		(74,389,367	)		(56,905,836	)		(63,738,923	)		(40,763,152	)

NET ASSETS	$	469,248,151		$	579,151,337		$	1,168,041,770		$	920,840,535

^(a)Investments at cost — affiliated	$	532,027,298		$	629,488,490		$	1,220,592,850		$	980,949,554
^(b)Securities loaned at value	$	5,020,050		$	3,594,560		$	—		$	10,613,700


30		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Statements of Assets and Liabilities (continued)

September 30, 2022


	BlackRock 20/80 Target Allocation Fund		BlackRock 40/60 Target Allocation Fund		BlackRock 60/40 Target Allocation Fund		BlackRock 80/20 Target Allocation Fund
NET ASSET VALUE

Institutional
Net assets	$	111,382,459	$	149,550,689	$	260,346,440	$	325,724,658

Shares outstanding		10,806,440		13,641,236		20,675,960		24,643,287

Net asset value	$	10.31	$	10.96	$	12.59	$	13.22

Shares authorized		Unlimited		Unlimited		Unlimited		Unlimited

Par value	$	0.001	$	0.001	$	0.001	$	0.001


Investor A
Net assets	$	216,422,143	$	259,983,645	$	564,789,216	$	255,281,070

Shares outstanding		21,358,741		24,009,256		45,846,863		19,794,396

Net asset value	$	10.13	$	10.83	$	12.32	$	12.90

Shares authorized		Unlimited		Unlimited		Unlimited		Unlimited

Par value	$	0.001	$	0.001	$	0.001	$	0.001


Investor C
Net assets	$	55,438,177	$	69,423,028	$	69,415,887	$	56,148,874

Shares outstanding		5,541,748		6,513,089		5,794,096		4,536,536

Net asset value	$	10.00	$	10.66	$	11.98	$	12.38

Shares authorized		Unlimited		Unlimited		Unlimited		Unlimited

Par value	$	0.001	$	0.001	$	0.001	$	0.001


Class K
Net assets	$	79,172,232	$	89,388,889	$	256,326,050	$	271,863,092

Shares outstanding		7,678,995		8,145,602		20,355,488		20,562,738

Net asset value	$	10.31	$	10.97	$	12.59	$	13.22

Shares authorized		Unlimited		Unlimited		Unlimited		Unlimited

Par value	$	0.001	$	0.001	$	0.001	$	0.001


Class R
Net assets	$	6,833,140	$	10,805,086	$	17,164,177	$	11,822,841

Shares outstanding		677,041		1,000,112		1,397,202		923,259

Net asset value	$	10.09	$	10.80	$	12.28	$	12.81

Shares authorized		Unlimited		Unlimited		Unlimited		Unlimited

Par value	$	0.001	$	0.001	$	0.001	$	0.001

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		31

Statements of Operations

Year Ended September 30, 2022


	BlackRock 20/80 Target Allocation Fund			BlackRock 40/60 Target Allocation Fund			BlackRock 60/40 Target Allocation Fund			BlackRock 80/20 Target Allocation Fund

INVESTMENT INCOME
Dividends — affiliated	$	13,164,124		$	15,441,640		$	29,837,025		$	19,871,388
Securities lending income — affiliated — net		18,662			23,457			7,623			5,310
Net investment income allocated from the affiliated Master Portfolio:
Income		3,932,768			4,741,564			6,162,727			2,260,039
Expenses		(90,491	)		(108,771	)		(140,602	)		(51,547	)


Total investment income		17,025,063			20,097,890			35,866,773			22,085,190


EXPENSES
Service and distribution — class specific		1,401,031			1,680,375			2,639,636			1,473,919
Transfer agent — class specific		500,825			715,136			1,256,591			972,480
Administration		243,171			290,297			534,186			364,823
Administration — class specific		115,391			138,938			264,913			176,115
Registration		105,942			103,417			102,459			94,462
Accounting services		66,634			66,634			67,394			66,633
Trustees and Officer		10,772			11,471			15,153			12,643
Custodian		8,801			12,608			14,146			13,110
Miscellaneous		115,252			119,135			116,632			121,686


Total expenses		2,567,819			3,138,011			5,011,110			3,295,871
Less:
Fees waived and/or reimbursed by the Manager		(146,690	)		(117,205	)		(5,307	)		(58,253	)
Administration fees waived by the Manager — class specific		(71,590	)		(92,989	)		(133,994	)		(165,760	)
Transfer agent fees waived and/or reimbursed by the Manager — class specific		(158,636	)		(304,868	)		(448,480	)		(535,140	)


Total expenses after fees waived and/or reimbursed		2,190,903			2,622,949			4,423,329			2,536,718


Net investment income		14,834,160			17,474,941			31,443,444			19,548,472


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated		(17,049,451	)		(7,729,483	)		(4,549,104	)		3,464,221
Capital gain distributions from investment companies — affiliated		1,123,558			1,388,728			3,585,239			3,260,726
Allocation from the affiliated Master Portfolio		(9,584,438	)		(11,593,405	)		(15,142,113	)		(5,508,969	)


		(25,510,331	)		(17,934,160	)		(16,105,978	)		1,215,978

Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		(67,612,494	)		(96,453,294	)		(233,237,103	)		(190,284,480	)
Allocation from the affiliated Master Portfolio		(18,160,258	)		(21,794,527	)		(28,223,956	)		(10,448,067	)


		(85,772,752	)		(118,247,821	)		(261,461,059	)		(200,732,547	)


Net realized and unrealized loss		(111,283,083	)		(136,181,981	)		(277,567,037	)		(199,516,569	)


NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	(96,448,923	)	$	(118,707,040	)	$	(246,123,593	)	$	(179,968,097	)

See notes to financial statements.


32		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Statements of Changes in Net Assets


	BlackRock 20/80 Target Allocation Fund						BlackRock 40/60 Target Allocation Fund

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/22			Year Ended 09/30/21

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income	$	14,834,160		$	8,778,263		$	17,474,941		$	9,324,717
Net realized gain (loss)		(25,510,331	)		16,043,967			(17,934,160	)		29,537,704
Net change in unrealized appreciation (depreciation)		(85,772,752	)		9,608,004			(118,247,821	)		26,663,478


Net increase (decrease) in net assets resulting from operations		(96,448,923	)		34,430,234			(118,707,040	)		65,525,899


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Institutional		(8,364,602	)		(5,248,568	)		(14,263,704	)		(7,847,044	)
Investor A		(12,561,656	)		(8,878,662	)		(18,930,297	)		(10,328,009	)
Investor C		(3,073,956	)		(2,942,807	)		(4,973,712	)		(3,235,754	)
Class K		(4,490,095	)		(2,360,694	)		(5,268,444	)		(1,482,505	)
Class R		(328,515	)		(306,762	)		(694,567	)		(402,884	)


Decrease in net assets resulting from distributions to shareholders		(28,818,824	)		(19,737,493	)		(44,130,724	)		(23,296,196	)


CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		(1,639,121	)		154,732,688			36,580,884			170,645,682


NET ASSETS
Total increase (decrease) in net assets		(126,906,868	)		169,425,429			(126,256,880	)		212,875,385
Beginning of year		596,155,019			426,729,590			705,408,217			492,532,832


End of year	$	469,248,151		$	596,155,019		$	579,151,337		$	705,408,217

^(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


F I N A N C I A L S T A T E M E N T S		33

Statements of Changes in Net Assets (continued)


	BlackRock 60/40 Target Allocation Fund						BlackRock 80/20 Target Allocation Fund

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/22			Year Ended 09/30/21

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income	$	31,443,444		$	15,793,132		$	19,548,472		$	7,920,732
Net realized gain (loss)		(16,105,978	)		72,929,106			1,215,978			36,600,647
Net change in unrealized appreciation (depreciation)		(261,461,059	)		83,459,976			(200,732,547	)		74,630,042


Net increase (decrease) in net assets resulting from operations		(246,123,593	)		172,182,214			(179,968,097	)		119,151,421


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Institutional		(22,135,077	)		(9,419,792	)		(14,616,494	)		(3,939,462	)
Investor A		(50,606,287	)		(22,531,685	)		(17,293,880	)		(4,257,985	)
Investor C		(6,561,466	)		(2,562,008	)		(4,078,857	)		(668,675	)
Class K		(19,339,998	)		(3,901,727	)		(17,950,003	)		(2,069,040	)
Class R		(1,153,902	)		(483,083	)		(619,014	)		(145,573	)


Decrease in net assets resulting from distributions to shareholders		(99,796,730	)		(38,898,295	)		(54,558,248	)		(11,080,735	)


CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		206,361,110			243,192,937			397,003,503			175,600,053


NET ASSETS
Total increase (decrease) in net assets		(139,559,213	)		376,476,856			162,477,158			283,670,739
Beginning of year		1,307,600,983			931,124,127			758,363,377			474,692,638


End of year	$	1,168,041,770		$	1,307,600,983		$	920,840,535		$	758,363,377

^(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


34		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights

(For a share outstanding throughout each period)


	BlackRock 20/80 Target Allocation Fund

	Institutional
	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	12.83		$	12.44		$	11.85		$	11.62		$	11.67


Net investment income^(a)		0.34			0.25			0.29			0.36			0.30

Net realized and unrealized gain (loss)		(2.25	)		0.70			0.59			0.42			(0.04	)


Net increase (decrease) from investment operations		(1.91	)		0.95			0.88			0.78			0.26


Distributions^(b)

From net investment income		(0.27	)		(0.20	)		(0.28	)		(0.40	)		(0.31	)

From net realized gain		(0.34	)		(0.36	)		(0.01	)		(0.15	)		—


Total distributions		(0.61	)		(0.56	)		(0.29	)		(0.55	)		(0.31	)


Net asset value, end of year	$	10.31		$	12.83		$	12.44		$	11.85		$	11.62


Total Return^(c)

Based on net asset value		(15.72	)%		7.71	%		7.56	%		7.23	%		2.27	%


Ratios to Average Net Assets^(d)

Total expenses		0.25	%		0.25	%		0.26	%		0.28	%		0.31	%


Total expenses after fees waived and/or reimbursed		0.11	%		0.11	%		0.12	%		0.12	%		0.16	%


Net investment income		2.86	%		1.96	%		2.44	%		3.17	%		2.63	%


Supplemental Data

Net assets, end of year (000)	$	111,382		$	170,274		$	101,480		$	46,017		$	42,461


Portfolio turnover rate		65	%		72	%		88	%		62	%		64	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		35

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 20/80 Target Allocation Fund (continued)

	Investor A
	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	12.63		$	12.26		$	11.68		$	11.46		$	11.51


Net investment income^(a)		0.29			0.21			0.25			0.32			0.26

Net realized and unrealized gain (loss)		(2.22	)		0.68			0.59			0.41			(0.04	)


Net increase (decrease) from investment operations		(1.93	)		0.89			0.84			0.73			0.22


Distributions^(b)

From net investment income		(0.23	)		(0.16	)		(0.25	)		(0.36	)		(0.27	)

From net realized gain		(0.34	)		(0.36	)		(0.01	)		(0.15	)		—


Total distributions		(0.57	)		(0.52	)		(0.26	)		(0.51	)		(0.27	)


Net asset value, end of year	$	10.13		$	12.63		$	12.26		$	11.68		$	11.46


Total Return^(c)

Based on net asset value		(16.06	)%		7.36	%		7.27	%		6.82	%		1.94	%


Ratios to Average Net Assets^(d)

Total expenses		0.48	%		0.47	%		0.51	%^(e)		0.54	%^(e)		0.56	%^(e)


Total expenses after fees waived and/or reimbursed		0.44	%		0.43	%		0.45	%		0.46	%		0.50	%


Net investment income		2.51	%		1.65	%		2.10	%		2.82	%		2.29	%


Supplemental Data

Net assets, end of year (000)	$	216,422		$	266,615		$	189,930		$	137,115		$	122,394


Portfolio turnover rate		65	%		72	%		88	%		62	%		64	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)	Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios.

See notes to financial statements.


36		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 20/80 Target Allocation Fund (continued)

	Investor C

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	12.46		$	12.10		$	11.54		$	11.30		$	11.34


Net investment income^(a)		0.21			0.11			0.16			0.23			0.17

Net realized and unrealized gain (loss)		(2.20	)		0.68			0.57			0.42			(0.04	)


Net increase (decrease) from investment operations		(1.99	)		0.79			0.73			0.65			0.13


Distributions^(b)

From net investment income		(0.13	)		(0.07	)		(0.16	)		(0.26	)		(0.17	)

From net realized gain		(0.34	)		(0.36	)		(0.01	)		(0.15	)		—


Total distributions		(0.47	)		(0.43	)		(0.17	)		(0.41	)		(0.17	)


Net asset value, end of year	$	10.00		$	12.46		$	12.10		$	11.54		$	11.30


Total Return^(c)

Based on net asset value		(16.64	)%		6.55	%		6.37	%		6.10	%		1.14	%


Ratios to Average Net Assets^(d)

Total expenses		1.20	%		1.21	%		1.25	%^(e)		1.28	%^(e)		1.31	%^(e)


Total expenses after fees waived and/or reimbursed		1.18	%		1.18	%		1.19	%		1.22	%		1.25	%


Net investment income		1.78	%		0.91	%		1.35	%		2.09	%		1.54	%


Supplemental Data

Net assets, end of year (000)	$	55,438		$	81,679		$	82,134		$	79,944		$	91,279


Portfolio turnover rate		65	%		72	%		88	%		62	%		64	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)

Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the years ended September 30, 2019 and September 30, 2018, the ratios would have been 1.27% and 1.30%, respectively. There was no financial impact to the expense ratio for the year ended September 30, 2020.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		37

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 20/80 Target Allocation Fund (continued)

	Class K

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	12.83		$	12.44		$	11.85		$	11.62		$	11.67


Net investment income^(a)		0.34			0.25			0.29			0.33			0.30

Net realized and unrealized gain (loss)		(2.25	)		0.70			0.60			0.45			(0.04	)


Net increase (decrease) from investment operations		(1.91	)		0.95			0.89			0.78			0.26


Distributions^(b)

From net investment income		(0.27	)		(0.20	)		(0.29	)		(0.40	)		(0.31	)

From net realized gain		(0.34	)		(0.36	)		(0.01	)		(0.15	)		—


Total distributions		(0.61	)		(0.56	)		(0.30	)		(0.55	)		(0.31	)


Net asset value, end of year	$	10.31		$	12.83		$	12.44		$	11.85		$	11.62


Total Return^(c)

Based on net asset value		(15.70	)%		7.72	%		7.58	%		7.26	%		2.29	%


Ratios to Average Net Assets^(d)

Total expenses		0.13	%		0.15	%		0.18	%		0.18	%		0.23	%


Total expenses after fees waived and/or reimbursed		0.09	%		0.09	%		0.10	%		0.10	%		0.14	%


Net investment income		2.93	%		1.98	%		2.44	%		2.87	%		2.63	%


Supplemental Data

Net assets, end of year (000)	$	79,172		$	70,002		$	44,530		$	31,853		$	3,355


Portfolio turnover rate		65	%		72	%		88	%		62	%		64	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.


38		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 20/80 Target Allocation Fund (continued)

	Class R

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	12.58		$	12.20		$	11.62		$	11.39		$	11.44


Net investment income^(a)		0.26			0.17			0.21			0.28			0.22

Net realized and unrealized gain (loss)		(2.22	)		0.69			0.58			0.42			(0.03	)


Net increase (decrease) from investment operations		(1.96	)		0.86			0.79			0.70			0.19


Distributions^(b)

From net investment income		(0.19	)		(0.12	)		(0.20	)		(0.32	)		(0.24	)

From net realized gain		(0.34	)		(0.36	)		(0.01	)		(0.15	)		—


Total distributions		(0.53	)		(0.48	)		(0.21	)		(0.47	)		(0.24	)


Net asset value, end of year	$	10.09		$	12.58		$	12.20		$	11.62		$	11.39


Total Return^(c)

Based on net asset value		(16.31	)%		7.07	%		6.87	%		6.58	%		1.64	%


Ratios to Average Net Assets^(d)

Total expenses		0.77	%		0.77	%		0.79	%^(e)		0.85	%^(e)		0.89	%


Total expenses after fees waived and/or reimbursed		0.74	%		0.73	%		0.74	%		0.78	%		0.81	%


Net investment income		2.22	%		1.37	%		1.81	%		2.55	%		1.97	%


Supplemental Data

Net assets, end of year (000)	$	6,833		$	7,585		$	8,656		$	11,241		$	14,079


Portfolio turnover rate		65	%		72	%		88	%		62	%		64	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)	Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		39

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 40/60 Target Allocation Fund

	Institutional

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	13.89		$	12.86		$	11.95		$	12.17		$	11.91


Net investment income^(a)		0.36			0.25			0.26			0.31			0.28

Net realized and unrealized gain (loss)		(2.43	)		1.38			0.97			0.31			0.28


Net increase (decrease) from investment operations		(2.07	)		1.63			1.23			0.62			0.56


Distributions^(b)

From net investment income		(0.30	)		(0.18	)		(0.32	)		(0.27	)		(0.30	)

From net realized gain		(0.56	)		(0.42	)		—			(0.57	)		—


Total distributions		(0.86	)		(0.60	)		(0.32	)		(0.84	)		(0.30	)


Net asset value, end of year	$	10.96		$	13.89		$	12.86		$	11.95		$	12.17


Total Return^(c)

Based on net asset value		(16.08	)%		12.91	%		10.48	%		6.00	%		4.74	%


Ratios to Average Net Assets^(d)

Total expenses		0.27	%		0.26	%		0.31	%		0.34	%		0.32	%


Total expenses after fees waived and/or reimbursed		0.11	%		0.11	%		0.13	%		0.14	%		0.15	%


Net investment income		2.80	%		1.84	%		2.15	%		2.69	%		2.37	%


Supplemental Data

Net assets, end of year (000)	$	149,551		$	233,289		$	152,244		$	73,817		$	66,357


Portfolio turnover rate		63	%		69	%		98	%		68	%		79	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.


40		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 40/60 Target Allocation Fund (continued)

	Investor A

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	13.73		$	12.73		$	11.83		$	12.06		$	11.80


Net investment income^(a)		0.31			0.20			0.22			0.27			0.24

Net realized and unrealized gain (loss)		(2.39	)		1.36			0.96			0.30			0.28


Net increase (decrease) from investment operations		(2.08	)		1.56			1.18			0.57			0.52


Distributions^(b)

From net investment income		(0.26	)		(0.14	)		(0.28	)		(0.23	)		(0.26	)

From net realized gain		(0.56	)		(0.42	)		—			(0.57	)		—


Total distributions		(0.82	)		(0.56	)		(0.28	)		(0.80	)		(0.26	)


Net asset value, end of year	$	10.83		$	13.73		$	12.73		$	11.83		$	12.06


Total Return^(c)

Based on net asset value		(16.31	)%		12.48	%		10.15	%		5.57	%		4.42	%


Ratios to Average Net Assets^(d)

Total expenses		0.48	%		0.46	%		0.50	%^(e)		0.53	%^(e)		0.54	%^(e)


Total expenses after fees waived and/or reimbursed		0.44	%		0.44	%		0.46	%		0.48	%		0.49	%


Net investment income		2.46	%		1.51	%		1.80	%		2.36	%		2.02	%


Supplemental Data

Net assets, end of year (000)	$	259,984		$	306,177		$	222,510		$	178,719		$	169,126


Portfolio turnover rate		63	%		69	%		98	%		68	%		79	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)

Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the years ended September 30, 2019 and September 30, 2018, the ratios would have been 0.52% and 0.53%, respectively. There was no financial impact to the expense ratio for the year ended September 30, 2020.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		41

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 40/60 Target Allocation Fund (continued)

	Investor C

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	13.52		$	12.54		$	11.66		$	11.87		$	11.60


Net investment income^(a)		0.22			0.10			0.13			0.18			0.15

Net realized and unrealized gain (loss)		(2.37	)		1.35			0.94			0.31			0.27


Net increase (decrease) from investment operations		(2.15	)		1.45			1.07			0.49			0.42


Distributions^(b)

From net investment income		(0.15	)		(0.05	)		(0.19	)		(0.13	)		(0.15	)

From net realized gain		(0.56	)		(0.42	)		—			(0.57	)		—


Total distributions		(0.71	)		(0.47	)		(0.19	)		(0.70	)		(0.15	)


Net asset value, end of year	$	10.66		$	13.52		$	12.54		$	11.66		$	11.87


Total Return^(c)

Based on net asset value		(16.93	)%		11.68	%		9.30	%		4.78	%		3.63	%


Ratios to Average Net Assets^(d)

Total expenses		1.20	%		1.21	%		1.25	%^(e)		1.28	%^(e)		1.29	%^(e)


Total expenses after fees waived and/or reimbursed		1.18	%		1.18	%		1.21	%		1.23	%		1.24	%


Net investment income		1.73	%		0.76	%		1.06	%		1.63	%		1.26	%


Supplemental Data

Net assets, end of year (000)	$	69,423		$	95,825		$	84,541		$	87,646		$	101,711


Portfolio turnover rate		63	%		69	%		98	%		68	%		79	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)

Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the year ended September 30, 2019 the ratio would have been 1.27%. There was no financial impact to the expense ratios for the years ended September 30, 2020 and September 30, 2018.

See notes to financial statements.


42		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 40/60 Target Allocation Fund (continued)

	Class K

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	13.90		$	12.87		$	11.96		$	12.18		$	11.92


Net investment income^(a)		0.36			0.26			0.27			0.31			0.29

Net realized and unrealized gain (loss)		(2.43	)		1.37			0.96			0.32			0.27


Net increase (decrease) from investment operations		(2.07	)		1.63			1.23			0.63			0.56


Distributions^(b)

From net investment income		(0.30	)		(0.18	)		(0.32	)		(0.28	)		(0.30	)

From net realized gain		(0.56	)		(0.42	)		—			(0.57	)		—


Total distributions		(0.86	)		(0.60	)		(0.32	)		(0.85	)		(0.30	)


Net asset value, end of year	$	10.97		$	13.90		$	12.87		$	11.96		$	12.18


Total Return^(c)

Based on net asset value		(16.06	)%		12.92	%		10.49	%		6.02	%		4.75	%


Ratios to Average Net Assets^(d)

Total expenses		0.13	%		0.14	%		0.17	%		0.20	%		0.21	%


Total expenses after fees waived and/or reimbursed		0.09	%		0.09	%		0.11	%		0.12	%		0.13	%


Net investment income		2.85	%		1.87	%		2.19	%		2.68	%		2.40	%


Supplemental Data

Net assets, end of year (000)	$	89,389		$	59,411		$	23,034		$	10,987		$	4,939


Portfolio turnover rate		63	%		69	%		98	%		68	%		79	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		43

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 40/60 Target Allocation Fund (continued)

	Class R

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	13.70		$	12.69		$	11.78		$	12.00		$	11.75


Net investment income^(a)		0.29			0.18			0.19			0.25			0.22

Net realized and unrealized gain (loss)		(2.39	)		1.36			0.97			0.31			0.27


Net increase (decrease) from investment operations		(2.10	)		1.54			1.16			0.56			0.49


Distributions^(b)

From net investment income		(0.24	)		(0.11	)		(0.25	)		(0.21	)		(0.24	)

From net realized gain		(0.56	)		(0.42	)		—			(0.57	)		—


Total distributions		(0.80	)		(0.53	)		(0.25	)		(0.78	)		(0.24	)


Net asset value, end of year	$	10.80		$	13.70		$	12.69		$	11.78		$	12.00


Total Return^(c)

Based on net asset value		(16.48	)%		12.27	%		9.99	%		5.45	%		4.18	%


Ratios to Average Net Assets^(d)

Total expenses		0.80	%		0.80	%		0.82	%		0.85	%		0.84	%


Total expenses after fees waived and/or reimbursed		0.61	%		0.61	%		0.63	%		0.64	%		0.65	%


Net investment income		2.31	%		1.34	%		1.61	%		2.21	%		1.84	%


Supplemental Data

Net assets, end of year (000)	$	10,805		$	10,705		$	10,205		$	16,778		$	18,302


Portfolio turnover rate		63	%		69	%		98	%		68	%		79	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.


44		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 60/40 Target Allocation Fund

	Institutional

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	16.38		$	14.43		$	13.37		$	13.74		$	13.20


Net investment income^(a)		0.39			0.26			0.27			0.30			0.30

Net realized and unrealized gain (loss)		(2.97	)		2.29			1.30			0.19			0.67


Net increase (decrease) from investment operations		(2.58	)		2.55			1.57			0.49			0.97


Distributions^(b)

From net investment income		(0.36	)		(0.21	)		(0.35	)		(0.21	)		(0.30	)

From net realized gain		(0.85	)		(0.39	)		(0.16	)		(0.65	)		(0.13	)


Total distributions		(1.21	)		(0.60	)		(0.51	)		(0.86	)		(0.43	)


Net asset value, end of year	$	12.59		$	16.38		$	14.43		$	13.37		$	13.74


Total Return^(c)

Based on net asset value		(17.30	)%		17.94	%		12.00	%		4.22	%		7.42	%


Ratios to Average Net Assets^(d)

Total expenses		0.26	%		0.24	%		0.28	%		0.34	%^(e)		0.29	%


Total expenses after fees waived and/or reimbursed		0.10	%		0.11	%		0.13	%		0.15	%		0.15	%


Net investment income		2.61	%		1.63	%		2.00	%		2.36	%		2.22	%


Supplemental Data

Net assets, end of year (000)	$	260,346		$	296,407		$	215,674		$	161,196		$	108,221


Portfolio turnover rate		58	%		68	%		98	%		69	%		88	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)	Includes non-recurring expenses of board realignment and consolidation and reorganization costs. Without these costs, total expenses would have been 0.32%.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		45

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 60/40 Target Allocation Fund (continued)

	Investor A

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	16.05		$	14.15		$	13.13		$	13.50		$	12.98


Net investment income^(a)		0.33			0.20			0.22			0.26			0.25

Net realized and unrealized gain (loss)		(2.90	)		2.25			1.27			0.19			0.65


Net increase (decrease) from investment operations		(2.57	)		2.45			1.49			0.45			0.90


Distributions^(b)

From net investment income		(0.31	)		(0.16	)		(0.31	)		(0.17	)		(0.25	)

From net realized gain		(0.85	)		(0.39	)		(0.16	)		(0.65	)		(0.13	)


Total distributions		(1.16	)		(0.55	)		(0.47	)		(0.82	)		(0.38	)


Net asset value, end of year	$	12.32		$	16.05		$	14.15		$	13.13		$	13.50


Total Return^(c)

Based on net asset value		(17.56	)%		17.58	%		11.54	%		3.94	%		7.03	%


Ratios to Average Net Assets^(d)

Total expenses		0.45	%		0.45	%		0.49	%		0.55	%^(e)(f)		0.51	%^(f)


Total expenses after fees waived and/or reimbursed		0.44	%		0.44	%		0.47	%		0.49	%		0.49	%


Net investment income		2.27	%		1.28	%		1.66	%		2.03	%		1.85	%


Supplemental Data

Net assets, end of year (000)	$	564,789		$	699,130		$	576,079		$	555,513		$	280,970


Portfolio turnover rate		58	%		68	%		98	%		69	%		88	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)	Includes non-recurring expenses of board realignment and consolidation and reorganization costs. Without these costs, total expenses would have been 0.53%.

^(f)	Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the year ended September 30, 2018 the ratio would have been 0.50%. There was no financial impact to the expense ratio for the year ended September 30, 2019.

See notes to financial statements.


46		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 60/40 Target Allocation Fund (continued)

	Investor C

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	15.64		$	13.79		$	12.81		$	13.17		$	12.66


Net investment income^(a)		0.22			0.08			0.12			0.15			0.14

Net realized and unrealized gain (loss)		(2.84	)		2.20			1.23			0.20			0.64


Net increase (decrease) from investment operations		(2.62	)		2.28			1.35			0.35			0.78


Distributions^(b)

From net investment income		(0.19	)		(0.04	)		(0.21	)		(0.06	)		(0.14	)

From net realized gain		(0.85	)		(0.39	)		(0.16	)		(0.65	)		(0.13	)


Total distributions		(1.04	)		(0.43	)		(0.37	)		(0.71	)		(0.27	)


Net asset value, end of year	$	11.98		$	15.64		$	13.79		$	12.81		$	13.17


Total Return^(c)

Based on net asset value		(18.18	)%		16.74	%		10.69	%		3.15	%		6.23	%


Ratios to Average Net Assets^(d)

Total expenses		1.18	%		1.20	%		1.23	%		1.30	%^(e)(f)		1.28	%


Total expenses after fees waived and/or reimbursed		1.18	%		1.19	%		1.22	%		1.24	%		1.24	%


Net investment income		1.55	%		0.53	%		0.91	%		1.23	%		1.10	%


Supplemental Data

Net assets, end of year (000)	$	69,416		$	99,500		$	85,371		$	94,713		$	105,283


Portfolio turnover rate		58	%		68	%		98	%		69	%		88	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)	Includes non-recurring expenses of board realignment and consolidation and reorganization costs. Without these costs, total expenses would have been 1.27%.

^(f)	Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the year ended September 30, 2019 the ratio would have been 1.29%.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		47

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 60/40 Target Allocation Fund (continued)

	Class K

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	16.38		$	14.43		$	13.37		$	13.74		$	13.20


Net investment income^(a)		0.40			0.28			0.27			0.30			0.30

Net realized and unrealized gain (loss)		(2.98	)		2.27			1.30			0.19			0.67


Net increase (decrease) from investment operations		(2.58	)		2.55			1.57			0.49			0.97


Distributions^(b)

From net investment income		(0.36	)		(0.21	)		(0.35	)		(0.21	)		(0.30	)

From net realized gain		(0.85	)		(0.39	)		(0.16	)		(0.65	)		(0.13	)


Total distributions		(1.21	)		(0.60	)		(0.51	)		(0.86	)		(0.43	)


Net asset value, end of year	$	12.59		$	16.38		$	14.43		$	13.37		$	13.74


Total Return^(c)

Based on net asset value		(17.29	)%		17.96	%		12.02	%		4.24	%		7.44	%


Ratios to Average Net Assets^(d)

Total expenses		0.10	%		0.11	%		0.14	%		0.20	%^(e)		0.18	%


Total expenses after fees waived and/or reimbursed		0.08	%		0.09	%		0.11	%		0.13	%		0.13	%


Net investment income		2.68	%		1.71	%		2.03	%		2.33	%		2.21	%


Supplemental Data

Net assets, end of year (000)	$	256,326		$	195,750		$	40,575		$	21,488		$	18,719


Portfolio turnover rate		58	%		68	%		98	%		69	%		88	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)	Includes non-recurring expenses of board realignment and consolidation and reorganization costs. Without these costs, total expenses would have been 0.18%.

See notes to financial statements.


48		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 60/40 Target Allocation Fund (continued)

	Class R

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	16.01		$	14.12		$	13.08		$	13.45		$	12.93


Net investment income^(a)		0.30			0.17			0.19			0.23			0.22

Net realized and unrealized gain (loss)		(2.90	)		2.24			1.28			0.19			0.66


Net increase (decrease) from investment operations		(2.60	)		2.41			1.47			0.42			0.88


Distributions^(b)

From net investment income		(0.28	)		(0.13	)		(0.27	)		(0.14	)		(0.23	)

From net realized gain		(0.85	)		(0.39	)		(0.16	)		(0.65	)		(0.13	)


Total distributions		(1.13	)		(0.52	)		(0.43	)		(0.79	)		(0.36	)


Net asset value, end of year	$	12.28		$	16.01		$	14.12		$	13.08		$	13.45


Total Return^(c)

Based on net asset value		(17.76	)%		17.31	%		11.42	%		3.68	%		6.85	%


Ratios to Average Net Assets^(d)

Total expenses		0.80	%		0.79	%		0.82	%		0.87	%^(e)		0.84	%


Total expenses after fees waived and/or reimbursed		0.63	%		0.64	%		0.66	%		0.68	%		0.68	%


Net investment income		2.06	%		1.07	%		1.45	%		1.80	%		1.66	%


Supplemental Data

Net assets, end of year (000)	$	17,164		$	16,815		$	13,425		$	15,930		$	18,740


Portfolio turnover rate		58	%		68	%		98	%		69	%		88	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)	Includes non-recurring expenses of board realignment and consolidation and reorganization costs. Without these costs, total expenses would have been 0.84%.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		49

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 80/20 Target Allocation Fund

	Institutional

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	17.10		$	14.16		$	12.83		$	13.26		$	12.47


Net investment income^(a)		0.37			0.24			0.23			0.25			0.25

Net realized and unrealized gain (loss)		(3.22	)		3.03			1.43			0.01			0.93


Net increase (decrease) from investment operations		(2.85	)		3.27			1.66			0.26			1.18


Distributions^(b)

From net investment income		(0.32	)		(0.18	)		(0.27	)		(0.16	)		(0.22	)

From net realized gain		(0.71	)		(0.15	)		(0.06	)		(0.53	)		(0.17	)


Total distributions		(1.03	)		(0.33	)		(0.33	)		(0.69	)		(0.39	)


Net asset value, end of year	$	13.22		$	17.10		$	14.16		$	12.83		$	13.26


Total Return^(c)

Based on net asset value		(18.02	)%		23.26	%		13.11	%		2.81	%		9.65	%


Ratios to Average Net Assets^(d)

Total expenses		0.30	%		0.28	%		0.34	%		0.39	%		0.36	%


Total expenses after fees waived and/or reimbursed		0.10	%		0.10	%		0.14	%		0.18	%		0.16	%


Net investment income		2.35	%		1.45	%		1.76	%		2.00	%		1.94	%


Supplemental Data

Net assets, end of year (000)	$	325,725		$	240,529		$	168,065		$	124,885		$	115,594


Portfolio turnover rate		51	%		56	%		116	%		64	%		80	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.


50		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 80/20 Target Allocation Fund (continued)

	Investor A

	Year Ended 09/30/22			Year Ended 09/30/21			Year Ended 09/30/20			Year Ended 09/30/19			Year Ended 09/30/18

Net asset value, beginning of year	$	16.72		$	13.85		$	12.56		$	13.00		$	12.23


Net investment income^(a)		0.31			0.18			0.18			0.20			0.19

Net realized and unrealized gain (loss)		(3.15	)		2.97			1.40			0.01			0.93


Net increase (decrease) from investment operations		(2.84	)		3.15			1.58			0.21			1.12


Distributions^(b)

From net investment income		(0.27	)		(0.13	)		(0.23	)		(0.12	)		(0.18	)

From net realized gain		(0.71	)		(0.15	)		(0.06	)		(0.53	)		(0.17	)


Total distributions		(0.98	)		(0.28	)		(0.29	)		(0.65	)		(0.35	)


Net asset value, end of year	$	12.90		$	16.72		$	13.85		$	12.56		$	13.00


Total Return^(c)

Based on net asset value		(18.32	)%		22.93	%		12.72	%		2.39	%		9.32	%


Ratios to Average Net Assets^(d)

Total expenses		0.50	%		0.47	%		0.53	%		0.57	%^(e)		0.57	%


Total expenses after fees waived and/or reimbursed		0.44	%		0.44	%		0.48	%		0.52	%		0.50	%


Net investment income		2.03	%		1.10	%		1.41	%		1.66	%		1.54	%


Supplemental Data

Net assets, end of year (000)	$	255,281		$	283,943		$	203,561		$	173,105		$	163,604


Portfolio turnover rate		51	%		56	%		116	%		64	%		80	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

^(e)	Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		51

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 80/20 Target Allocation Fund (continued)

	Investor C
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	09/30/22			09/30/21			09/30/20			09/30/19			09/30/18

Net asset value, beginning of year	$	16.09		$	13.35		$	12.12		$	12.55		$	11.82


Net investment income^(a)		0.19			0.06			0.08			0.11			0.10

Net realized and unrealized gain (loss)		(3.04	)		2.86			1.35			0.01			0.90


Net increase (decrease) from investment operations		(2.85	)		2.92			1.43			0.12			1.00


Distributions^(b)

From net investment income		(0.15	)		(0.03	)		(0.14	)		(0.02	)		(0.10	)

From net realized gain		(0.71	)		(0.15	)		(0.06	)		(0.53	)		(0.17	)


Total distributions		(0.86	)		(0.18	)		(0.20	)		(0.55	)		(0.27	)


Net asset value, end of year	$	12.38		$	16.09		$	13.35		$	12.12		$	12.55


Total Return^(c)

Based on net asset value		(18.92	)%		21.95	%		11.90	%		1.63	%		8.55	%


Ratios to Average Net Assets^(d)

Total expenses		1.20	%		1.23	%		1.30	%		1.35	%		1.36	%


Total expenses after fees waived and/or reimbursed		1.19	%		1.19	%		1.23	%		1.27	%		1.25	%


Net investment income		1.29	%		0.36	%		0.66	%		0.91	%		0.80	%


Supplemental Data

Net assets, end of year (000)	$	56,149		$	74,750		$	50,977		$	51,002		$	55,986


Portfolio turnover rate		51	%		56	%		116	%		64	%		80	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.


52		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 80/20 Target Allocation Fund (continued)

	Class K
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	09/30/22			09/30/21			09/30/20			09/30/19			09/30/18

Net asset value, beginning of year	$	17.11		$	14.16		$	12.83		$	13.26		$	12.47


Net investment income^(a)		0.40			0.25			0.24			0.25			0.25

Net realized and unrealized gain (loss)		(3.26	)		3.03			1.42			0.01			0.94


Net increase (decrease) from investment operations		(2.86	)		3.28			1.66			0.26			1.19


Distributions^(b)

From net investment income		(0.32	)		(0.18	)		(0.27	)		(0.16	)		(0.23	)

From net realized gain		(0.71	)		(0.15	)		(0.06	)		(0.53	)		(0.17	)


Total distributions		(1.03	)		(0.33	)		(0.33	)		(0.69	)		(0.40	)


Net asset value, end of year	$	13.22		$	17.11		$	14.16		$	12.83		$	13.26


Total Return^(c)

Based on net asset value		(18.05	)%		23.35	%		13.13	%		2.83	%		9.66	%


Ratios to Average Net Assets^(d)

Total expenses		0.10	%		0.12	%		0.18	%		0.23	%		0.22	%


Total expenses after fees waived and/or reimbursed		0.08	%		0.08	%		0.12	%		0.16	%		0.14	%


Net investment income		2.56	%		1.50	%		1.79	%		2.03	%		1.92	%


Supplemental Data

Net assets, end of year (000)	$	271,863		$	148,917		$	45,032		$	18,804		$	14,403


Portfolio turnover rate		51	%		56	%		116	%		64	%		80	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.


F I N A N C I A L H I G H L I G H T S		53

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock 80/20 Target Allocation Fund (continued)

	Class R
	Year Ended			Year Ended			Year Ended			Year Ended			Year Ended
	09/30/22			09/30/21			09/30/20			09/30/19			09/30/18

Net asset value, beginning of year	$	16.61		$	13.77		$	12.47		$	12.90		$	12.14


Net investment income^(a)		0.28			0.14			0.15			0.18			0.17

Net realized and unrealized gain (loss)		(3.13	)		2.96			1.40			0.01			0.92


Net increase (decrease) from investment operations		(2.85	)		3.10			1.55			0.19			1.09


Distributions^(b)

From net investment income		(0.24	)		(0.11	)		(0.19	)		(0.09	)		(0.16	)

From net realized gain		(0.71	)		(0.15	)		(0.06	)		(0.53	)		(0.17	)


Total distributions		(0.95	)		(0.26	)		(0.25	)		(0.62	)		(0.33	)


Net asset value, end of year	$	12.81		$	16.61		$	13.77		$	12.47		$	12.90


Total Return^(c)

Based on net asset value		(18.43	)%		22.69	%		12.53	%		2.22	%		9.15	%


Ratios to Average Net Assets^(d)

Total expenses		0.82	%		0.80	%		0.84	%		0.89	%		0.90	%


Total expenses after fees waived and/or reimbursed		0.60	%		0.60	%		0.64	%		0.68	%		0.66	%


Net investment income		1.85	%		0.87	%		1.17	%		1.51	%		1.39	%


Supplemental Data

Net assets, end of year (000)	$	11,823		$	10,224		$	7,058		$	9,631		$	11,832


Portfolio turnover rate		51	%		56	%		116	%		64	%		80	%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, assumes the reinvestment of distributions.

^(d)	Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.


54		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements

1.	*ORGANIZATION*

BlackRock Funds II (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Massachusetts business trust. The Funds will generally invest in other registered investment companies, including exchange-traded funds (“ETFs”) (each an “Underlying Fund” and collectively, the “Underlying Funds”) that are managed by subsidiaries of BlackRock, Inc. (“BlackRock”) and its affiliates and affiliates of the Funds. The Funds may also invest in master portfolios that are managed by subsidiaries of BlackRock (the “Master Portfolios”). The following, each of which is a series of the Trust, are referred to herein collectively as the “Funds” or individually as a “Fund”:


Fund Name	Herein Referred To As	Diversification Classification
BlackRock 20/80 Target Allocation Fund	20/80 Target Allocation	Diversified
BlackRock 40/60 Target Allocation Fund	40/60 Target Allocation	Diversified
BlackRock 60/40 Target Allocation Fund	60/40 Target Allocation	Diversified
BlackRock 80/20 Target Allocation Fund	80/20 Target Allocation	Diversified

By owning shares of Underlying Funds and investing in the Master Portfolio, each Fund indirectly invests, to varying degrees, in fixed-income and equity securities. The Funds are subject to the same risks as the Underlying Funds and the Master Portfolio in which they invest. Equity funds may include funds that invest in, among other things, domestic and international equities, real estate-related securities or instruments and commodity-related securities or instruments. Fixed-income funds may include funds that invest in, among other things, domestic and non-U.S. bonds, U.S. Government securities, mortgage-backed securities, high yield (or junk) bonds, and cash or money market instruments. Multi-asset funds may include funds that invest in any of the securities or instruments in which equity funds or fixed-income funds may invest. In addition, the Underlying Funds and the Master Portfolio may invest in derivatives.

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional and Class K Shares are sold only to certain eligible investors. Investor A, Investor C and Class R Shares bear certain expenses related to shareholder servicing of such shares, and Investor C and Class R Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Class R Shares are sold only to certain employer-sponsored retirement plans. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).


Share Class	Initial Sales Charge	CDSC			Conversion Privilege
Institutional, Class K and Class R Shares	No		No		None
Investor A Shares	Yes		No	^(a)	None
Investor C Shares	No		Yes	^(b)	To Investor A Shares after approximately 8 years

^(a)

Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

^(b)

A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.

As of period end, the 20 /80 Target Allocation and the 40/60 Target Allocation Funds’ investment in the Master Total Return Portfolio was 25.3% and 25.5% of their net assets, respectively. The financial statements of the Master Total Return Portfolio, including the Schedule of Investments and the accounting policies, can be read in conjunction with the Fund’s financial statements. The Master Total Return Portfolio’s financial statements are available, without charge, on the U.S. Securities and Exchange Commission’s (“SEC’s”) website at www.sec.gov.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of open-end equity, multi-asset, index and money market 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. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. The Funds record daily their proportionate share of the Master Portfolio’s income, expenses and realized and unrealized gains and losses. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets. In addition to the direct expenses borne by the shareholders of the Funds, the shareholders also bear indirectly a proportionate share of the expenses of the Underlying Funds in which the Funds invest. Capital gain distributions from the Underlying Funds are recorded as realized gains.

Distributions: Distributions paid by the Funds 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.

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.


N O T E S T O F I N A N C I A L S T A T E M E N T S		55

Notes to Financial Statements (continued)

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

The Funds have an arrangement with their custodian whereby credits are earned on uninvested cash balances, which could be used to reduce custody fees and/or overdraft charges. The Funds may incur charges on overdrafts, subject to certain conditions.

3.	*INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS*

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of each Fund has approved the designation of each Fund’s Manager BlackRock Advisors, LLC (“the Manager”) as the valuation designee for the Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Funds’ assets and liabilities:

•

ETFs and closed-end funds traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. ETFs and closed-end funds traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

•

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

•

The Funds value their investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon their pro rata ownership in the underlying fund’s net assets.

•

The Funds record their proportionate investment in the Master Portfolio at fair value, which is based upon their pro rata ownership in the net assets of the Master Portfolio.

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 each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.

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 each 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.

As of September 30, 2022, certain investments of the Fund were fair valued using NAV as a practical expedient per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4.	*SECURITIES AND OTHER INVESTMENTS*

Securities Lending: The Funds may lend their securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Funds collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral


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Notes to Financial Statements (continued)

received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Funds are entitled to all distributions made on or in respect of the loaned securities, but do not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedules of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Funds’ Schedules of Investments. The market value of any securities on loan and the value of any related collateral are shown separately in the Statements of Assets and Liabilities as a component of investments at value – affiliated and collateral on securities loaned, respectively.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and a Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Funds’ securities on loan by counterparty which are subject to offset under an MSLA:


Fund Name/Counterparty		Securities Loaned at Value		Cash Collateral Received	^(a)		Non-Cash Collateral Received	^(a)		Net Amount
20/80 Target Allocation Morgan Stanley	$	5,020,050	$	(5,020,050	)	$	—		$	—

40/60 Target Allocation Morgan Stanley	$	3,594,560	$	(3,594,560	)	$	—		$	—

80/20 Target Allocation Citigroup Global Markets, Inc.	$	10,613,700	$	(10,613,700	)	$	—		$	—

^(a)

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Funds benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Funds.

5.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Investment Advisory: The Trust, on behalf of the Funds, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund. The Manager does not receive any management fees from the Funds for its investment advisory services.

Service and Distribution Fees: The Trust, on behalf of the Funds, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:


Share Class	Service Fees			Distribution Fees
Investor A		0.25	%		N/A
Investor C		0.25			0.75	%
Class R		0.25			0.25

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


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Notes to Financial Statements (continued)

For the year ended September 30, 2022, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:


Fund Name	Investor A		Investor C		Class R		Total
20/80 Target Allocation	$	639,250	$	725,299	$	36,482	$	1,401,031
40/60 Target Allocation		758,764		864,123		57,488		1,680,375
60/40 Target Allocation		1,674,997		880,405		84,234		2,639,636
80/20 Target Allocation		725,211		692,411		56,297		1,473,919

Administration: The Trust, on behalf of the Funds, 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 each Fund. The administration fee, which is shown as administration in the Statements of Operations, is paid at the annual rates below.


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

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

For the year ended September 30, 2022, the following table shows the class specific administration fees borne directly by each share class of each Fund:


Fund Name	Institutional		Investor A		Investor C		Class K		Class R		Total
20/80 Target Allocation	$	31,202	$	51,157	$	14,519	$	17,054	$	1,459	$	115,391
40/60 Target Allocation		41,858		60,713		17,294		16,774		2,299		138,938
60/40 Target Allocation		58,218		134,050		17,621		51,655		3,369		264,913
80/20 Target Allocation		47,693		58,015		13,856		54,300		2,251		176,115

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended September 30, 2022, the Funds did not pay any amounts to affiliates in return for these services.

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended September 30, 2022, each 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 Statements of Operations:


Fund Name	Institutional		Investor A		Investor C		Class K		Class R		Total
20/80 Target Allocation	$	473	$	3,271	$	1,218	$	129	$	80	$	5,171
40/60 Target Allocation		484		4,046		1,620		232		94		6,476
60/40 Target Allocation		2,298		20,136		3,063		404		84		25,985
80/20 Target Allocation		484		7,570		657		372		100		9,183

For the year ended September 30, 2022, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:


Fund Name	Institutional		Investor A		Investor C		Class K		Class R		Total
20/80 Target Allocation	$	181,895	$	256,015	$	50,992	$	1,811	$	10,112	$	500,825
40/60 Target Allocation		307,129		320,748		63,962		3,126		20,171		715,136
60/40 Target Allocation		468,181		677,976		73,761		2,703		33,970		1,256,591
80/20 Target Allocation		460,104		414,186		71,393		2,796		24,001		972,480

Other Fees: For the year ended September 30, 2022, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:


Fund Name	Amounts
20/80 Target Allocation	$	44,243
40/60 Target Allocation		42,963
60/40 Target Allocation		54,142
80/20 Target Allocation		54,982


58		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (continued)

For the year ended September 30, 2022, affiliates received CDSCs as follows:


Share Class	20/80 Target Allocation		40/60 Target Allocation		60/40 Target Allocation		80/20 Target Allocation
Investor A	$	7,738	$	1,377	$	6,808	$	786
Investor C		14,041		14,726		9,256		10,663

Expense Limitations, Waivers and Reimbursements: With respect to each Fund, the Manager has contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:


Fund Name	Institutional			Investor A			Investor C			Class K			Class R
20/80 Target Allocation		0.09	%		0.43	%		1.18	%		0.07	%		0.74	%
40/60 Target Allocation		0.09			0.43			1.18			0.07			0.59
60/40 Target Allocation		0.09			0.43			1.18			0.07			0.62
80/20 Target Allocation		0.09			0.43			1.18			0.07			0.59

The Manager has agreed not to reduce or discontinue the contractual expense limitations through June 30, 2023, unless approved by the Board, including a majority of the trustees who are not “interested persons” of the Trust, as defined in the 1940 Act (“Independent Trustees”), or by a vote of a majority of the outstanding voting securities of a Fund. The contractual expense limitations exclude expenses allocated from the Underlying Funds and the Master Portfolio in which the Funds invest. For the year ended September 30, 2022, the amounts included in fees waived and/or reimbursed by the Manager in the Statements of Operations were as follows:


Fund Name	Amounts Waived
20/80 Target Allocation	$	146,690
40/60 Target Allocation		117,205
60/40 Target Allocation		5,307
80/20 Target Allocation		58,253

In addition, these amounts waived and/or reimbursed by the Manager are included in administration fees waived by the Manager — class specific and transfer agent fees waived and/or reimbursed by the Manager — class specific, respectively, in the Statements of Operations. For the year ended September 30, 2022, class specific expense waivers and/or reimbursements are as follows:



	Administration Fees Waived - class specific

Fund Name	Institutional		Investor A		Investor C		Class K		Class R		Total
20/80 Target Allocation	$	31,202	$	23,324	$	6	$	17,054	$	4	$	71,590
40/60 Target Allocation		41,858		32,075		—		16,757		2,299		92,989
60/40 Target Allocation		58,218		34,944		4		37,459		3,369		133,994
80/20 Target Allocation		47,693		53,590		8,316		53,910		2,251		165,760


	Transfer Agent Fees Waived and/or Reimbursed - class specific

Fund Name	Institutional		Investor A		Investor C		Class K		Class R		Total
20/80 Target Allocation	$	150,718	$	6,105	$	—	$	1,810	$	3	$	158,636
40/60 Target Allocation		265,254		18,625		—		3,121		17,868		304,868
60/40 Target Allocation		391,423		32,462		—		156		24,439		448,480
80/20 Target Allocation		411,971		98,640		126		2,662		21,741		535,140

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Funds are responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company, Money Market Series, managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the Money Market Series to an annual rate of 0.04%. The investment adviser to the Money Market Series will not charge any advisory fees with respect to shares purchased by the Funds. The Money Market Series may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. Each Fund retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund retains 82% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.


N O T E S T O F I N A N C I A L S T A T E M E N T S		59

Notes to Financial Statements (continued)

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, each Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in the Statements of Operations. For the year ended September 30, 2022, each Fund paid BIM the following amounts for securities lending agent services:


Fund Name	Amounts
20/80 Target Allocation	$	3,689
40/60 Target Allocation		4,111
60/40 Target Allocation		1,426
80/20 Target Allocation		1,128

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Funds may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the year ended September 30, 2022, the Funds did not participate in the Interfund Lending Program.

Trustees and Officers: Certain trustees and/or officers of the Trust are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Trust’s Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

Other Transactions: The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended September 30, 2022, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:


Fund Name	Purchases		Sales		Net Realized Gain (Loss)
40/60 Target Allocation	$	798,156	$	2,838,881	$	1,002,427
60/40 Target Allocation		2,810,728		—		—
80/20 Target Allocation		6,057,869		3,608,594		(754,384	)

6.	*PURCHASES AND SALES*

For the year ended September 30, 2022, purchases and sales of investments in the Underlying Funds and the Master Portfolio, excluding short-term securities, were as follows:


Fund Name	Purchases		Sales
20/80 Target Allocation	$	369,677,289	$	385,572,889
40/60 Target Allocation		442,110,713		434,876,342
60/40 Target Allocation		891,484,183		756,066,662
80/20 Target Allocation		805,417,115		442,532,854

7.	*INCOME TAX INFORMATION*

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

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2022, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.


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Notes to Financial Statements (continued)

The tax character of distributions paid was as follows:


	Period		20/80 Target Allocation		40/60 Target Allocation		60/40 Target Allocation		80/20 Target Allocation
Ordinary income		09/30/22	$	18,439,353	$	21,331,700	$	50,238,697	$	24,584,472
		09/30/21		10,361,527		13,484,695		28,857,214		7,221,411
Long-term capital gains		09/30/22		10,379,471		22,799,024		49,558,033		29,973,776
		09/30/21		9,375,966		9,811,501		10,041,081		3,859,324

Total		09/30/22	$	28,818,824	$	44,130,724	$	99,796,730	$	54,558,248

		09/30/21	$	19,737,493	$	23,296,196	$	38,898,295	$	11,080,735

As of September 30, 2022, the tax components of accumulated net earnings were as follows:


	20/80 Target Allocation			40/60 Target Allocation			60/40 Target Allocation			80/20 Target Allocation
Undistributed ordinary income	$	9,640,642		$	10,541,433		$	17,924,213		$	10,338,136
Undistributed long-term capital gains		—			—			—			3,173,856
Net unrealized losses^(a)		(56,764,906	)		(48,744,612	)		(66,372,535	)		(54,275,144	)
Qualified late-year losses		(27,265,103	)		(18,702,657	)		(15,290,601	)		—

	$	(74,389,367	)	$	(56,905,836	)	$	(63,738,923	)	$	(40,763,152	)

^(a)

The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and the timing and recognition of partnership income.

As of September 30, 2022, 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:


	20/80 Target Allocation			40/60 Target Allocation			60/40 Target Allocation			80/20 Target Allocation
Tax cost	$	532,570,466		$	631,979,438		$	1,235,179,882		$	985,816,565


Gross unrealized appreciation	$	2,894,568		$	13,593,177		$	42,631,484		$	10,316,685
Gross unrealized depreciation		(59,659,474	)		(62,337,789	)		(109,004,019	)		(64,591,829	)


Net unrealized appreciation (depreciation)	$	(56,764,906	)	$	(48,744,612	)	$	(66,372,535	)	$	(54,275,144	)

8.	*BANK BORROWINGS*

The Trust, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.50 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2023 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 year ended September 30, 2022, the Funds did not borrow under the credit agreement.

9.	*PRINCIPAL RISKS*

In the normal course of business, through their investments in the Underlying Funds and the Master Portfolio, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to redemption gates or liquidity fees under certain circumstances.

Market Risk: An outbreak of respiratory disease caused by a novel coronavirus has developed into a global pandemic and has resulted in closing borders, quarantines, disruptions to supply chains and customer activity, as well as general concern and uncertainty. The impact of this pandemic, and other global health crises that may arise in the future, could affect the economies of many nations, individual companies and the market in general in ways that cannot necessarily be foreseen at the present time. This


N O T E S T O F I N A N C I A L S T A T E M E N T S		61

Notes to Financial Statements (continued)

pandemic may result in substantial market volatility and may adversely impact the prices and liquidity of a fund’s investments. Although vaccines have been developed and approved for use by various governments, the duration of this pandemic and its effects cannot be determined with certainty.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A Fund may invest in illiquid investments. An illiquid investment is any investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause each Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a Fund may lose value, regardless of the individual results of the securities and other instruments in which a Fund invests.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

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 United Kingdom’s Financial Conduct Authority announced a phase out of the London Interbank Offered Rate (“LIBOR”). Although many LIBOR rates ceased to be published or no longer are representative of the underlying market they seek to measure after December 31, 2021, a selection of widely used USD LIBOR rates will continue to be published through June 2023 in order to assist with the transition. The Funds may be exposed to financial instruments tied to LIBOR to determine payment obligations, financing terms, hedging strategies or investment value. The transition process away from LIBOR might lead to increased volatility and illiquidity in markets for, and reduce the effectiveness of new hedges placed against instruments whose terms currently include LIBOR. The ultimate effect of the LIBOR transition process on the Funds is uncertain.

10.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:


	Year Ended 09/30/22						Year Ended 09/30/21
Fund Name/Share Class	Shares			Amount			Shares			Amount

20/80 Target Allocation

Institutional

Shares sold		4,465,830		$	53,805,482			8,774,859		$	111,429,686

Shares issued in reinvestment of distributions		668,278			8,333,427			415,437			5,192,959

Shares redeemed		(7,601,485	)		(87,747,358	)		(4,075,245	)		(51,801,741	)


		(2,467,377	)	$	(25,608,449	)		5,115,051		$	64,820,904


Investor A

Shares sold and automatic conversion of shares		5,835,409		$	69,135,005			10,073,827		$	126,143,963

Shares issued in reinvestment of distributions		995,061			12,229,299			695,939			8,587,892

Shares redeemed		(6,588,879	)		(76,057,260	)		(5,149,077	)		(64,509,614	)


		241,591		$	5,307,044			5,620,689		$	70,222,241


Investor C

Shares sold		1,118,974		$	13,246,127			2,170,537		$	26,882,907

Shares issued in reinvestment of distributions		251,719			3,070,969			236,358			2,895,389

Shares redeemed and automatic conversion of shares		(2,383,284	)		(27,236,859	)		(2,640,298	)		(32,723,425	)


		(1,012,591	)	$	(10,919,763	)		(233,403	)	$	(2,945,129	)


62		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (continued)


	Year Ended 09/30/22						Year Ended 09/30/21
Fund Name/Share Class	Shares			Amount			Shares			Amount

20/80 Target Allocation (continued)

Class K

Shares sold		3,874,058		$	47,721,613			2,516,023		$	32,099,228

Shares issued in reinvestment of distributions		359,172			4,478,871			187,889			2,350,496

Shares redeemed		(2,009,467	)		(23,455,259	)		(828,210	)		(10,518,966	)


		2,223,763		$	28,745,225			1,875,702		$	23,930,758


Class R

Shares sold		195,340		$	2,250,690			132,288		$	1,652,793

Shares issued in reinvestment of distributions		26,795			328,514			24,900			306,762

Shares redeemed		(148,185	)		(1,742,382	)		(263,610	)		(3,255,641	)


		73,950		$	836,822			(106,422	)	$	(1,296,086	)


		(940,664	)	$	(1,639,121	)		12,271,617		$	154,732,688


40/60 Target Allocation

Institutional

Shares sold		5,722,621		$	74,662,525			8,749,899		$	119,396,424

Shares issued in reinvestment of distributions		1,051,431			14,173,284			588,782			7,813,142

Shares redeemed		(9,931,167	)		(124,359,094	)		(4,374,438	)		(59,450,899	)


		(3,157,115	)	$	(35,523,285	)		4,964,243		$	67,758,667


Investor A

Shares sold and automatic conversion of shares		5,285,700		$	68,331,715			8,206,157		$	110,872,276

Shares issued in reinvestment of distributions		1,366,543			18,229,692			748,295			9,840,074

Shares redeemed		(4,942,007	)		(61,900,397	)		(4,132,639	)		(55,824,180	)


		1,710,236		$	24,661,010			4,821,813		$	64,888,170


Investor C

Shares sold		1,090,083		$	13,891,591			2,428,363		$	32,287,944

Shares issued in reinvestment of distributions		376,479			4,973,294			245,541			3,196,943

Shares redeemed and automatic conversion of shares		(2,041,331	)		(25,497,194	)		(2,325,715	)		(31,090,055	)


		(574,769	)	$	(6,632,309	)		348,189		$	4,394,832


Class K

Shares sold		4,602,534		$	60,313,130			3,158,326		$	43,088,103

Shares issued in reinvestment of distributions		389,352			5,252,362			110,867			1,471,202

Shares redeemed		(1,120,582	)		(14,320,039	)		(783,983	)		(10,648,465	)


		3,871,304		$	51,245,453			2,485,210		$	33,910,840


Class R

Shares sold		367,246		$	4,623,003			256,010		$	3,452,779

Shares issued in reinvestment of distributions		52,106			694,567			30,661			402,884

Shares redeemed		(200,556	)		(2,487,555	)		(309,538	)		(4,162,490	)


		218,796		$	2,830,015			(22,867	)	$	(306,827	)


		2,068,452		$	36,580,884			12,596,588		$	170,645,682


60/40 Target Allocation

Institutional

Shares sold		8,028,915		$	118,198,850			5,934,692		$	94,066,539

Shares issued in reinvestment of distributions		1,379,722			21,937,593			607,245			9,333,348

Shares redeemed		(6,827,570	)		(100,862,283	)		(3,396,667	)		(53,793,902	)


		2,581,067		$	39,274,160			3,145,270		$	49,605,985


N O T E S T O F I N A N C I A L S T A T E M E N T S		63

Notes to Financial Statements (continued)


	Year Ended 09/30/22						Year Ended 09/30/21
Fund Name/Share Class	Shares			Amount			Shares			Amount

60/40 Target Allocation (continued)

Investor A

Shares sold and automatic conversion of shares		5,148,021		$	76,518,397			7,594,207		$	118,912,767

Shares issued in reinvestment of distributions		3,164,721			49,369,653			1,453,982			21,940,586

Shares redeemed		(6,022,641	)		(87,619,968	)		(6,200,496	)		(96,581,901	)


		2,290,101		$	38,268,082			2,847,693		$	44,271,452


Investor C

Shares sold		814,731		$	11,927,507			1,751,795		$	26,915,470

Shares issued in reinvestment of distributions		429,461			6,549,280			171,929			2,542,831

Shares redeemed and automatic conversion of shares		(1,812,277	)		(26,086,228	)		(1,750,428	)		(26,732,258	)


		(568,085	)	$	(7,609,441	)		173,296		$	2,726,043


Class K

Shares sold		10,667,123		$	164,197,208			10,225,789		$	162,581,863

Shares issued in reinvestment of distributions		1,216,352			19,339,998			254,019			3,901,727

Shares redeemed		(3,477,658	)		(52,035,392	)		(1,342,688	)		(21,533,063	)


		8,405,817		$	131,501,814			9,137,120		$	144,950,527


Class R

Shares sold		480,629		$	6,749,365			284,137		$	4,527,204

Shares issued in reinvestment of distributions		72,742			1,133,325			32,000			482,564

Shares redeemed		(206,424	)		(2,956,195	)		(216,970	)		(3,370,838	)


		346,947		$	4,926,495			99,167		$	1,638,930


		13,055,847		$	206,361,110			15,402,546		$	243,192,937


80/20 Target Allocation

Institutional

Shares sold		14,471,247		$	207,376,058			4,569,472		$	75,592,666

Shares issued in reinvestment of distributions		857,189			14,589,361			250,347			3,930,452

Shares redeemed		(4,748,787	)		(75,376,565	)		(2,628,304	)		(43,006,876	)


		10,579,649		$	146,588,854			2,191,515		$	36,516,242


Investor A

Shares sold and automatic conversion of shares		4,598,707		$	71,874,389			4,376,545		$	70,392,291

Shares issued in reinvestment of distributions		1,025,501			17,064,339			273,338			4,203,938

Shares redeemed		(2,816,838	)		(43,648,678	)		(2,360,766	)		(37,878,544	)


		2,807,370		$	45,290,050			2,289,117		$	36,717,685


Investor C

Shares sold		1,058,197		$	16,050,821			1,661,804		$	25,973,633

Shares issued in reinvestment of distributions		253,903			4,077,682			44,845			667,746

Shares redeemed and automatic conversion of shares		(1,421,437	)		(21,268,830	)		(880,407	)		(13,624,875	)


		(109,337	)	$	(1,140,327	)		826,242		$	13,016,504


Class K

Shares sold		14,567,888		$	243,888,693			6,531,491		$	104,526,932

Shares issued in reinvestment of distributions		1,054,642			17,950,004			131,786			2,069,040

Shares redeemed		(3,765,086	)		(60,293,941	)		(1,138,746	)		(18,942,100	)


		11,857,444		$	201,544,756			5,524,531		$	87,653,872


64		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Notes to Financial Statements (continued)


	Year Ended 09/30/22						Year Ended 09/30/21
Fund Name/Share Class	Shares			Amount			Shares			Amount

80/20 Target Allocation (continued)

Class R

Shares sold		431,825		$	6,473,814			301,443		$	4,866,982

Shares issued in reinvestment of distributions		36,660			606,742			9,508			145,573

Shares redeemed		(160,793	)		(2,360,386	)		(207,956	)		(3,316,805	)


		307,692		$	4,720,170			102,995		$	1,695,750


		25,442,818		$	397,003,503			10,934,400		$	175,600,053

As of September 30, 2022, shares owned by BlackRock HoldCo 2, Inc., an affiliate of the Funds, were as follows:


Share Class	20/80 Target Allocation		40/60 Target Allocation
Class K		18,349		18,727

11.

SUBSEQUENT EVENTS

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


N O T E S T O F I N A N C I A L S T A T E M E N T S		65

Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock 20/80 Target Allocation Fund, BlackRock 40/60 Target Allocation Fund, BlackRock 60/40 Target Allocation Fund, and BlackRock 80/20 Target Allocation Fund and the Board of Trustees of BlackRock Funds II:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock 20/80 Target Allocation Fund, BlackRock 40/60 Target Allocation Fund, BlackRock 60/40 Target Allocation Fund, and BlackRock 80/20 Target Allocation Fund of BlackRock Funds II (the “Funds”), including the schedules of investments, as of September 30, 2022, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of September 30, 2022, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2022, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

November 22, 2022

We have served as the auditor of one or more BlackRock investment companies since 1992.


66		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Important Tax Information (unaudited)

The following amounts, or maximum amounts allowable by law are hereby designated as qualified dividend income for individuals for the fiscal year ended September 30, 2022:



Fund Name		Qualified Dividend Income
20/80 Target Allocation		$ 2,230,958
40/60 Target Allocation		5,549,816
60/40 Target Allocation		15,466,234
80/20 Target Allocation		14,025,960

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified business income for individuals for the fiscal year ended September 30, 2022:



Fund Name		Qualified Business Income
20/80 Target Allocation		$ 28,848
40/60 Target Allocation		67,409
60/40 Target Allocation		189,512
80/20 Target Allocation		167,385

The Funds hereby designates the following amounts, or maximum amounts allowable by law, as long-term capital dividends for the fiscal year ended September 30, 2022:



Fund Name		20% Rate Long-Term Capital Gain Dividends
20/80 Target Allocation		$ 10,379,471
40/60 Target Allocation		22,799,024
60/40 Target Allocation		49,558,033
80/20 Target Allocation		29,973,776

The Funds intend to pass through to its shareholders the following amounts, or maximum amount allowable by law, of the foreign source income earned and foreign taxes paid for the fiscal year ended September 30, 2022:



Fund Name	Foreign Source Income Earned		Foreign Taxes Paid
20/80 Target Allocation	$	797,807	$	22,991
40/60 Target Allocation		1,918,877		59,783
60/40 Target Allocation		5,322,865		160,197
80/20 Target Allocation		4,828,042		141,086

The Funds hereby designate the following amounts, or maximum amounts allowable by law, of distributions from direct federal obligation interest for the fiscal year ended September 30, 2022:



Fund Name		Federal Obligation Interest
20/80 Target Allocation		$ 3,655,881
40/60 Target Allocation		2,893,594
60/40 Target Allocation		4,113,668
80/20 Target Allocation		1,851,780

The law varies in each state as to whether and what percent of ordinary income dividends attribute to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.

The following percentages, or maximum percentages allowable by law, of ordinary income distributions paid during the fiscal year ended September 30, 2022 qualified for the dividends-received deduction for corporate shareholder:



Fund Name	Dividends-Received Deduction
20/80 Target Allocation		6.56	%
40/60 Target Allocation		12.66
60/40 Target Allocation		14.66
80/20 Target Allocation		24.06


I M P O R T A N T T A X I N F O R M A T I O N		67

Important Tax Information (unaudited)

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended September 30, 2022:



Fund Name		Interest Dividends
20/80 Target Allocation		$ 11,977,139
40/60 Target Allocation		10,916,527
60/40 Target Allocation		13,781,496
80/20 Target Allocation		4,531,611

The Funds hereby designates the following amounts, or maximum amounts allowable by law, as interest-related dividends and qualified short-term capital gains eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended September 30, 2022:



Fund Name	Interest-Related Dividends		Qualified Short-Term Capital Gains
20/80 Target Allocation	$	8,717,154	$ 1,550,289
40/60 Target Allocation		7,966,645	1,444,630
60/40 Target Allocation		10,293,673	1,976,624
80/20 Target Allocation		3,615,727	—


68		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Disclosure of Investment Advisory Agreement

The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Funds II (the “Trust”) met on April 20, 2022 (the “April Meeting”) and May 10-11, 2022 (the “May Meeting”) to consider the approval to continue the investment advisory agreement (the “Agreement”) between the Trust, on behalf of BlackRock 20/80 Target Allocation Fund (the “20/80 Fund”), BlackRock 40/60 Target Allocation Fund (the “40/60 Fund”), BlackRock 60/40 Target Allocation Fund (the “60/40 Fund”) and BlackRock 80/20 Target Allocation Fund (the “80/20 Fund”) (each, a “Fund,” and collectively, the “Funds”), and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), each Fund’s investment advisor.

The Approval Process

Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Board considers the approval of the continuation of the Agreement for each Fund on an annual basis. The Board members who are not “interested persons” of the Trust, as defined in the 1940 Act, are considered independent Board members (the “Independent Board Members”). The Board’s consideration entailed a year-long deliberative process during which the Board and its committees assessed BlackRock’s various services to each Fund, including through the review of written materials and oral presentations, and the review of additional information provided in response to requests from the Independent Board Members. The Board had four quarterly meetings per year, each typically extending for two days, as well as additional ad hoc meetings and executive sessions throughout the year, as needed. The committees of the Board similarly met throughout the year. The Board also had an additional one-day meeting to consider specific information surrounding the renewal of the Agreement. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to the Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Board, acting directly and through its committees, considered information that was relevant to its annual consideration of the renewal of the Agreement, including the services and support provided by BlackRock to the Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, an applicable benchmark, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ analyses of the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Fund; (d) the resources devoted to risk oversight of, and compliance reports relating to, implementation of the Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and the Fund’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services, as available; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of the Fund’s valuation and liquidity procedures; (k) an analysis of management fees paid to BlackRock for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Prior to and in preparation for the April Meeting, the Board received and reviewed materials specifically relating to the renewal of the Agreement. The Independent Board Members continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Funds; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and the Funds’ operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreement and the Independent Board Members presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Funds; (d) each Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Funds; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board Members evaluated the information available to it on a fund-by-fund basis. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board Members did not identify any particular information, or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.


D I S C L O S U R E O F I N V E S T M E N T A D V I S O R Y A G R E E M E N T		69

Disclosure of Investment Advisory Agreement (continued)

A. Nature, Extent and Quality of the Services Provided by BlackRock

The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of each Fund. Throughout the year, the Board compared each Fund’s performance to the performance of a comparable group of mutual funds, relevant benchmark, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide the Funds with certain administrative, shareholder and other services (in addition to any such services provided to the Funds by third-parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide the Funds with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers, including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Funds, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing each Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations. The Board considered the operation of BlackRock’s business continuity plans, including in light of the ongoing COVID-19 pandemic.

B. The Investment Performance of the Funds and BlackRock

The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund throughout the year and at the April Meeting. In preparation for the April Meeting, the Board was provided with reports independently prepared by Broadridge, which included an analysis of each Fund’s performance as of December 31, 2021, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of the Fund as compared to its Performance Peers. The Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of each Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board noted that for each of the one-, three- and five-year periods reported, each of the 20/80 Fund and the 40/60 Fund ranked in the second, first and first quartiles, respectively, against its Performance Peers.

The Board noted that for the one-, three- and five-year periods reported, the 80/20 Fund ranked in the third, first and first quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable period.

The Board noted that for the one-, three- and five-year periods reported, the 60/40 Fund ranked in the third, second and second quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable period.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Funds

The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board noted that BlackRock does not charge the Funds an advisory fee. The Board reviewed BlackRock’s estimated profitability with respect to other funds the Board currently oversees for the year ended December 31, 2021 compared to available


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Disclosure of Investment Advisory Agreement (continued)

aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at the individual fund level is difficult.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreement and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing the Funds, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that BlackRock will not receive any advisory fees from the Funds for its investment advisory service, and that the varying fee structure for fund of funds can limit the value of management fee comparisons.

The Board also noted that each of the 20/80 Fund’s and the 40/60 Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile relative to the Fund’s Expense Peers.

The Board also noted that the 60/40 Fund’s contractual management fee rate ranked first out of three funds, and that the actual management fee rate and total expense ratio ranked first out of three funds and in the first quartile relative to the Fund’s Expense Peers, respectively.

The Board also noted that the 80/20 Fund’s contractual management fee rate ranked first out of four funds, and that the actual management fee rate and total expense ratio each ranked in the first quartile relative to the Fund’s Expense Peers.

The Board further noted that BlackRock and the Board have contractually agreed to a cap on each Fund’s total expenses as a percentage of the pertinent Fund’s average daily net assets on a class-by-class basis.

D. Economies of Scale

The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Funds increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and contractual expense caps had been approved by the Board. In its consideration, the Board further considered the continuation and/or implementation of fee waivers and/or expense caps, as applicable. The Board also considered the extent to which the Funds benefit from such economies of scale in a variety of ways, and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable the Funds to more fully participate in these economies of scale. The Board considered each Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members

The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Funds, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreement, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the open-end fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the pertinent Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

At the May Meeting, as a result of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board, including the Independent Board Members, unanimously approved the continuation of the Agreement between the Manager and the Trust, on behalf of each Fund, for a one-year term ending June 30, 2023. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreement were fair and reasonable and, in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.


D I S C L O S U R E O F I N V E S T M E N T A D V I S O R Y A G R E E M E N T		71

Trustee and Officer Information



Independent Trustees^(a)

Name Year of Birth^(b)	Position(s) Held (Length of Service)^(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years

Mark Stalnecker 1951	Chair of the Board and Trustee (Since 2019)	Chief Investment Officer, University of Delaware from 1999 to 2013; Trustee and Chair of the Finance and Investment Committees, Winterthur Museum and Country Estate from 2005 to 2016; Member of the Investment Committee, Delaware Public Employees’ Retirement System since 2002; Member of the Investment Committee, Christiana Care Health System from 2009 to 2017; Member of the Investment Committee, Delaware Community Foundation from 2013 to 2014; Director and Chair of the Audit Committee, SEI Private Trust Co. from 2001 to 2014.	28 RICs consisting of 164 Portfolios	None

Susan J. Carter 1956	Trustee (Since 2019)	Trustee, Financial Accounting Foundation from 2017 to 2021; Advisory Board Member, Center for Private Equity and Entrepreneurship at Tuck School of Business from 1997 to 2021; Director, Pacific Pension Institute from 2014 to 2018; Senior Advisor, Commonfund Capital, Inc. (“CCI”) (investment adviser) in 2015; Chief Executive Officer, CCI from 2013 to 2014; President & Chief Executive Officer, CCI from 1997 to 2013; Advisory Board Member, Girls Who Invest from 2015 to 2018 and Board Member thereof since 2018; Advisory Board Member, Bridges Fund Management since 2016; Practitioner Advisory Board Member, Private Capital Research Institute (“PCRI”) since 2017; Lecturer in the Practice of Management, Yale School of Management since 2019; Advisor to Finance Committee, Altman Foundation since 2020; Investment Committee Member, Tostan since 2021.	28 RICs consisting of 164 Portfolios	None

Collette Chilton 1958	Trustee (Since 2019)	Chief Investment Officer, Williams College since 2006; Chief Investment Officer, Lucent Asset Management Corporation from 1998 to 2006; Director, Boys and Girls Club of Boston since 2017; Director, B1 Capital since 2018; Director, David and Lucile Packard Foundation since 2020.	28 RICs consisting of 164 Portfolios	None

Neil A. Cotty 1954	Trustee (Since 2019)	Bank of America Corporation from 1996 to 2015, serving in various senior finance leadership roles, including Chief Accounting Officer from 2009 to 2015, Chief Financial Officer of Global Banking, Markets and Wealth Management from 2008 to 2009, Chief Accounting Officer from 2004 to 2008, Chief Financial Officer of Consumer Bank from 2003 to 2004, Chief Financial Officer of Global Corporate Investment Bank from 1999 to 2002.	28 RICs consisting of 164 Portfolios	None

Lena G. Goldberg 1949	Trustee (Since 2016)	Director, Charles Stark Draper Laboratory, Inc. since 2013; Senior Lecturer, Harvard Business School, from 2008 to 2021; FMR LLC/Fidelity Investments (financial services) from 1996 to 2008, serving in various senior roles including Executive Vice President - Strategic Corporate Initiatives and Executive Vice President and General Counsel; Partner, Sullivan & Worcester LLP from 1985 to 1996 and Associate thereof from 1979 to 1985.	28 RICs consisting of 164 Portfolios	None


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Trustee and Officer Information (continued)



Independent Trustees^(a)

Name Year of Birth^(b)	Position(s) Held (Length of Service)^(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years

Henry R. Keizer 1956	Trustee (Since 2016)	Director, Park Indemnity Ltd. (captive insurer) since 2010; Director, MUFG Americas Holdings Corporation and MUFG Union Bank, N.A. (financial and bank holding company) from 2014 to 2016; Director, American Institute of Certified Public Accountants from 2009 to 2011; Director, KPMG LLP (audit, tax and advisory services) from 2004 to 2005 and 2010 to 2012; Director, KPMG International in 2012, Deputy Chairman and Chief Operating Officer thereof from 2010 to 2012 and U.S. Vice Chairman of Audit thereof from 2005 to 2010; Global Head of Audit, KPMGI (consortium of KPMG firms) from 2006 to 2010; Director, YMCA of Greater New York from 2006 to 2010.	28 RICs consisting of 164 Portfolios	Hertz Global Holdings (car rental); GrafTech International Ltd. (materials manufacturing); Montpelier Re Holdings, Ltd. (publicly held property and casualty reinsurance) from 2013 to 2015; WABCO (commercial vehicle safety systems) from 2015 to 2020; Sealed Air Corp. (packaging) from 2015 to 2021

Cynthia A. Montgomery 1952	Trustee (Since 2019)	Professor, Harvard Business School since 1989.	28 RICs consisting of 164 Portfolios	Newell Rubbermaid, Inc. (manufacturing) from 1995 to 2016.

Donald C. Opatrny 1952	Trustee (Since 2015)	Director, Athena Capital Advisors LLC (investment management firm) from 2013 to 2020; Trustee, Vice Chair, Member of the Executive Committee and Chair of the Investment Committee, Cornell University from 2004 to 2019; President and Trustee, the Center for the Arts, Jackson Hole from 2011 to 2018; Member of the Board and Investment Committee, University School from 2007 to 2018; Trustee, Artstor (a Mellon Foundation affiliate) from 2010 to 2015; Member of the Investment Committee, Mellon Foundation from 2009 to 2015; President, Trustee and Member of the Investment Committee, The Aldrich Contemporary Art Museum from 2007 to 2014; Trustee and Chair of the Investment Committee, Community Foundation of Jackson Hole since 2014; Member of Affordable Housing Supply Board of Jackson, Wyoming since 2017; Member, Investment Funds Committee, State of Wyoming since 2017; Trustee, Phoenix Art Museum since 2018; Trustee, Arizona Community Foundation and Member of Investment Committee since 2020.	28 RICs consisting of 164 Portfolios	None

Joseph P. Platt 1947	Trustee (Since 2019)	General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Chair, Basic Health International (non-profit) since 2015.	28 RICs consisting of 164 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company); Consol Energy Inc.


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Trustee and Officer Information (continued)



Independent Trustees^(a)

Name Year of Birth^(b)	Position(s) Held (Length of Service)^(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years

Kenneth L. Urish 1951	Trustee (Since 2019)	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Past-Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since founding in 2001; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007; Member, Advisory Board, ESG Competent Boards since 2020.	28 RICs consisting of 164 Portfolios	None

Claire A. Walton 1957	Trustee (Since 2019)	Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; General Partner of Neon Liberty Capital Management, LLC since 2003; Director, Boston Hedge Fund Group from 2009 to 2018; Director, Woodstock Ski Runners since 2013; Director, Massachusetts Council on Economic Education from 2013 to 2015.	28 RICs consisting of 164 Portfolios	None

Interested Trustees^(a)(d)

Name Year of Birth^(b)	Position(s) Held (Length of Service)^(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years

Robert Fairbairn 1965	Trustee (Since 2015)	Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016.	97 RICs consisting of 264 Portfolios	None

John M. Perlowski^(e) 1964	Trustee (Since 2015) President and Chief Executive Officer (Since 2010)	Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.	99 RICs consisting of 266 Portfolios	None

^(a)	The address of each Trustee is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

^(b)

Each Independent Trustee holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Trustees who are “interested persons,” as defined in the 1940 Act, serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate.

^(c)

Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. In addition, effective January 1, 2019, three BlackRock Fund Complexes were realigned and consolidated into two BlackRock


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Trustee and Officer Information (continued)

Fund Complexes. As a result, although the chart shows the year that each Independent Trustee joined the Board, certain Independent Trustees first became members of the boards of other BlackRock-advised Funds, legacy MLIM funds or legacy BlackRock funds as follows: Susan J. Carter, 2016; Collette Chilton, 2015; Neil A. Cotty, 2016; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Mark Stalnecker, 2015; Kenneth L. Urish, 1999; Claire A. Walton, 2016.

^(d)	Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trust based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex.

^(e)	Mr. Perlowski is also a trustee of the BlackRock Credit Strategies Fund and BlackRock Private Investments Fund.


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Trustee and Officer Information (continued)

Officers Who Are Not Trustees^(a)



Name Year of Birth^(b)	Position(s) Held (Length of Service)	Principal Occupation(s) During Past Five Years

Jennifer McGovern 1977	Vice President (Since 2014)	Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Americas Product Development and Governance for BlackRock’s Global Product Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019.

Trent Walker 1974	Chief Financial Officer (Since 2021)	Managing Director of BlackRock, Inc. since September 2019; Executive Vice President of PIMCO from 2016 to 2019; Senior Vice President of PIMCO from 2008 to 2015; Treasurer from 2013 to 2019 and Assistant Treasurer from 2007 to 2017 of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.

Jay M. Fife 1970	Treasurer (Since 2007)	Managing Director of BlackRock, Inc. since 2007.

Charles Park 1967	Chief Compliance Officer (Since 2014)	Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.

Lisa Belle 1968	Anti-Money Laundering Compliance Officer (Since 2019)	Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.

Janey Ahn 1975	Secretary (Since 2019)	Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.

^(a)	The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

^(b)	Officers of the Trust serve at the pleasure of the Board.

Further information about the Trust’s Trustees and Officers is available in the Trust’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Effective December 31, 2021, Bruce R. Bond retired as a Trustee of the Trust.


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Additional Information

General Information

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Householding

The Funds 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 Funds at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each 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 Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to securities held in the Funds’ portfolios 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.

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.


A D D I T I O N A L I N F O R M A T I O N		77


Additional Information (continued)

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		Independent Registered Public Accounting Firm
BlackRock Advisors, LLC		Deloitte & Touche LLP
Wilmington, DE 19809		Boston, MA 02116

Accounting Agent and Transfer Agent		Distributor
BNY Mellon Investment Servicing (US) Inc.		BlackRock Investments, LLC
Wilmington, DE 19809		New York, NY 10022

Custodian		Legal Counsel
The Bank of New York Mellon		Sidley Austin LLP
New York, NY 10286		New York, NY 10019

		Address of the Trust
		100 Bellevue Parkway
		Wilmington, DE 19809


78		2 0 2 2 B L A C K R O C K A N N U A L R E P O R T T O S H A R E H O L D E R S

Glossary of Terms Used in this Report


Portfolio Abbreviation
ETF		Exchange-Traded Fund

S&P		Standard & Poor’s


G L O S S A R Y O F T E R M S U S E D I N T H I S R E P O R T		79

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 Funds unless preceded or accompanied by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

TARGET-9/22-AR

(b) Not Applicable

Item 2 –

Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

Item 3 –

Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Neil A. Cotty

Henry R. Keizer

Kenneth L. Urish

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 –

Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:


	(a) Audit Fees		(b) Audit-Related Fees¹		(c) Tax Fees²		(d) All Other Fees
Entity Name	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End

BlackRock 20/80 Target Allocation Fund	$22,950	$22,725	$44	$207	$18,600	$15,800	$431	$0

BlackRock 40/60 Target Allocation Fund	$22,950	$22,725	$44	$207	$18,600	$15,800	$431	$0

BlackRock 60/40 Target Allocation Fund	$22,950	$22,725	$44	$207	$18,600	$15,800	$431	$0

BlackRock 80/20 Target Allocation Fund	$22,950	$22,725	$44	$207	$18,600	$15,800	$431	$0

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with

BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):


	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees¹	$0	$0
(c) Tax Fees²	$0	$0
(d) All Other Fees³	$2,098,000	$2,032,000

¹ The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

² The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

³ Non-audit fees of $2,098,000 and $2,032,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:


Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock 20/80 Target Allocation Fund	$19,076	$16,007
BlackRock 40/60 Target Allocation Fund	$19,076	$16,007
BlackRock 60/40 Target Allocation Fund	$19,076	$16,007
BlackRock 80/20 Target Allocation Fund	$19,076	$16,007

Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:


Current Fiscal Year End		Previous Fiscal Year End
$2,098,000		$2,032,000

These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) – Not Applicable

(j) – Not Applicable

Item 5 –

Audit Committee of Listed Registrant – Not Applicable

Item 6 –

Investments

(a) The registrant’s Schedule of Investments is included as part of the 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 –

Exhibits attached hereto

(a)(1) Code of Ethics – See Item 2

(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 II


		By:		/s/ John M. Perlowski
				John M. Perlowski
				Chief Executive Officer (principal executive officer) of
				BlackRock Funds II

Date: November 22, 2022

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 II

Date: November 22, 2022


		By:		/s/ Trent Walker
				Trent Walker
				Chief Financial Officer (principal financial officer) of
				BlackRock Funds II

Date: November 22, 2022

BlackRock Funds II N-CSRCertified annual shareholder report (management investment company)