UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-05742
| Name of Fund: | | BlackRock FundsSM |
| | | BlackRock Advantage Emerging Markets Fund |
| | | BlackRock Defensive Advantage Emerging Markets Fund |
| | | BlackRock Global Equity Market Neutral Fund |
| Fund Address: | | 100 Bellevue Parkway, Wilmington, DE 19809 |
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock FundsSM,
50 Hudson Yards, New York, NY 10001
Registrant’s telephone number, including area code: (800) 441-7762
Date of fiscal year end: 04/30/2024
Date of reporting period: 04/30/2024
Item 1 – Report to Stockholders
(a) The Report to Shareholders is attached herewith.
April 30, 2024
|
• BlackRock Defensive Advantage Emerging Markets Fund |
Not FDIC Insured • May Lose Value • No Bank Guarantee |
Rob KapitoPresident, BlackRock Advisors, LLCDear Shareholder,
The combination of continued economic growth and cooling inflation provided a supportive backdrop for investors during the 12-month reporting period ended April 30, 2024. Higher interest rates helped to rein in inflation, and the Consumer Price Index decelerated substantially while remaining above pre-pandemic levels. A moderating labor market helped ease inflationary pressure, although wages continued to grow. Wage and job growth powered robust consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war has had a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were robust during the period, as interest rates stabilized and the economy proved to be more resilient than many investors expected. The U.S. economy continued to show strength, and growth further accelerated in the second half of 2023. Large-capitalization U.S. stocks posted particularly substantial gains, supported by the performance of a few notable technology companies, while small-capitalization U.S. stocks’ advance was slower but still impressive. Meanwhile, both international developed market equities and emerging market stocks also gained, albeit at a notably slower pace than that of U.S. stocks.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. However, higher yields drove solid gains in shorter-duration U.S. Treasuries. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates twice during the 12-month period, but paused its tightening after its July meeting. The Fed also continued to reduce its balance sheet by not replacing some of the securities that reach maturity.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has stopped tightening for now, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period, and recent statements from the Fed seem to support this view. In this new regime, we anticipate greater volatility and dispersion of returns, creating more opportunities for selective portfolio management.
Looking at developed market stocks, we have an overweight stance on U.S. stocks overall, particularly given the promise of emerging AI technologies. We are also overweight Japanese stocks as shareholder-friendly policies generate increased investor interest, although we maintain an underweight stance on European stocks. In credit, we believe there are selective opportunities in the near term despite tighter credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
Total Returns as of April 30, 2024 |
| | |
U.S. large cap equities
(S&P 500® Index) | | |
U.S. small cap equities
(Russell 2000® Index) | | |
International equities
(MSCI Europe, Australasia,
Far East Index) | | |
Emerging market equities
(MSCI Emerging Markets Index) | | |
3-month Treasury bills
(ICE BofA 3-Month
U.S. Treasury Bill Index) | | |
U.S. Treasury securities
(ICE BofA 10-Year
U.S. Treasury Index) | | |
U.S. investment grade bonds
(Bloomberg U.S. Aggregate
Bond Index) | | |
Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index) | | |
U.S. high yield bonds
(Bloomberg U.S. Corporate
High Yield 2%
Issuer Capped Index) | | |
Past performance is not an indication of future results. Index
performance is shown for illustrative purposes only. You
cannot invest directly in an index. |
2This Page is not Part of Your Fund Report
Fund Summary as of April 30, 2024
BlackRock Defensive Advantage Emerging Markets Fund
Investment Objective
BlackRock Defensive Advantage Emerging Markets Fund’s (the “Fund”) investment objective is to seek to provide long-term capital appreciation.
Portfolio Management Commentary
How did the Fund perform?
For the 12-month period ended April 30, 2024, all of the Fund’s share classes outperformed its primary benchmark, the MSCI Emerging Markets Minimum Volatility Index, but underperformed its secondary benchmark, the MSCI Emerging Markets Index.
What factors influenced performance?
Emerging-market equities, while producing positive absolute returns, trailed their developed-market peers. The period was highlighted by elevated volatility that was driven by geopolitical events, persistent inflation, monetary policy changes and sector-specific trends. Performance was weak in the first half of the period, due largely to a poor showing for China. The market lagged considerably due to downbeat foreign investor sentiment and weak economic data, as well as a broader risk-off tone in the markets during the third quarter of 2023. However, India performed well as it was seen as an alternative to China by U.S. and European investors. Additionally, Poland continued its rebound from the downturn that followed the onset of the Ukraine conflict in 2022. Asian equities rebounded later in the period given signs of stabilization in China and a rally in semiconductor stocks that was driven by enthusiasm related to artificial intelligence (“AI”). There was a notable style rotation during the period, with value dominating the earlier part and momentum taking the lead thereafter.
Stock selection insights drove the Fund’s outperformance, led by those that evaluate sentiment. Trend-based insights designed to measure sentiment from monthly sales forecasts, analysts’ revisions, and informed-investor positioning were among the top contributors by correctly aligning the portfolio for the optimism surrounding AI. This was highlighted by a successful overweight in Taiwan information technology stocks. Additionally, an insight looking at policy and political risk expectations drove a successful underweight in South Korea. Certain fundamental measures also worked well. Insights that evaluate changes in balance sheet strength, such as net operating assets, contributed positively, as did those that favor more stable companies. Traditional valuation insights that track company sales, cash flow, dividends and other financial statement metrics further contributed.
Despite the Fund’s positive overall performance, select measures detracted. Macro measures detracted amid changing leadership and sentiment stemming from the shifting outlook for inflation and monetary policy. In particular, an overweight in Indonesia hurt results. Human capital quality related insights that analyze companies based on data from online job postings motivated an unsuccessful overweight in China offshore healthcare stocks, which also detracted from performance.
Describe recent portfolio activity.
The Fund maintained a balanced allocation of risk across all major performance drivers, while adding several new signals to the existing set of stock selection insights. It built upon its alternative data capabilities with enhanced data sets that capture informed investor positioning in specific regions. Additionally, the Fund added to its complex of consumer intent insights with a measure that looks at web activity as a gauge of potential revenue growth. It also built on country-specific employee sentiment data sets in Asia. In addition, the Fund responded to geopolitical tensions by developing a new insight that analyzes the movement of manufacturing processes across countries in Asia.
Describe portfolio positioning at period end.
The Fund maintained a largely sector- and country-neutral positioning. It had a slight overweight in energy and industrials, and it had a small underweight in information technology and consumer discretionary. At the country level, it had a narrow overweight in Brazil and a modest underweight in the Philippines.
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.
42024 BlackRock Annual Report to Shareholders
Fund Summary as of April 30, 2024(continued)
BlackRock Defensive Advantage Emerging Markets Fund
GROWTH OF $10,000 INVESTMENT 
The Fund commenced operations on December 21, 2020.
(a)
Assuming maximum sales charges, if any, transaction costs and other operating expenses, including investment advisory fees. Institutional Shares do not have a sales charge.
(b)
Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities issued by, or tied economically to, companies in emerging markets and derivatives that have similar economic characteristics to such securities.
(c)
An index that aims to reflect the performance characteristics of a minimum variance strategy applied to large- and mid-cap equities across certain emerging markets countries. The index is calculated by optimizing the MSCI Emerging Markets Index, its parent index, for the lowest absolute risk (within a given set of constraints).
(d)
An index that captures large- and mid-cap representation across emerging markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country.
| Average Annual Total Returns(a) |
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MSCI Emerging Markets Minimum Volatility Index | | | | |
MSCI Emerging Markets Index | | | | |
| 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. |
| The Fund commenced operations on December 21, 2020. |
N/A — Not applicable as the 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.
Expense Example
| | | |
| Beginning
Account Value
(11/01/23) | Ending
Account Value
(04/30/24) | Expenses
Paid During
the Period(a) | Beginning
Account Value
(11/01/23) | Ending
Account Value
(04/30/24) | Expenses
Paid During
the Period(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 182/366 (to reflect the one-half year period shown). |
See “Disclosure of Expenses” for further information on how expenses were calculated.
Fund Summary as of April 30, 2024(continued)
BlackRock Defensive Advantage Emerging Markets Fund
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Haier Smart Home Co. Ltd., Class H | |
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Meihua Holdings Group Co. Ltd., Class A | |
Hon Hai Precision Industry Co. Ltd. | |
Bangkok Dusit Medical Services PCL | |
BOE Technology Group Co. Ltd., Class A | |
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Industrial & Commercial Bank of China Ltd., Class H | |
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Abu Dhabi Commercial Bank PJSC | |
|
Country/Geographic Region | |
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Liabilities in Excess of Other Assets | |
| Excludes short-term securities. |
| Includes holdings within countries/geographic regions that are less than 1.0% of net assets. Please refer to the Schedule of Investments for such countries/geographic regions. |
62024 BlackRock Annual Report to Shareholders
About Fund Performance
Institutional Shares and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors.
Investor A Shares are 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.
Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of the Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Refer to blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Figures shown in the performance table(s) assume reinvestment of all distributions, if any, at net asset value ("NAV") on the ex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.
BlackRock Advisors, LLC (the "Manager"), the Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of the Fund’s expenses. Without such waiver(s) and/or reimbursement(s), the Fund’s performance would have been lower. With respect to the Fund’s voluntary waiver(s), if any, the Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waiver(s) may be reduced or discontinued at any time. With respect to the Fund’s contractual waiver(s), if any, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See the Notes to Financial Statements for additional information on waivers and/or reimbursements.
Disclosure of Expenses
Shareholders of the Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example shown (which is based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.
The expense example provides information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their Fund and share class under the heading entitled “Expenses Paid During the Period.”
The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.
The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
Derivative Financial Instruments
The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Fund must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.
BlackRock Defensive Advantage Emerging Markets Fund
About Fund Performance / Disclosure of Expenses / Derivative Financial Instruments7
Schedule of InvestmentsApril 30, 2024
BlackRock Defensive Advantage Emerging Markets Fund(Percentages shown are based on Net Assets)
| | | |
|
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| | | |
Telefonica Brasil SA, ADR | | | |
| | | |
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Bank of China Ltd., Class H | | | |
BOE Technology Group Co. Ltd., Class A | | | |
Bosideng International Holdings Ltd. | | | |
China Construction Bank Corp., Class H | | | |
China Galaxy Securities Co. Ltd., Class H | | | |
China Merchants Bank Co. Ltd., Class H | | | |
China Petroleum & Chemical Corp., Class H | | | |
China Railway Group Ltd., Class H | | | |
Chow Tai Fook Jewellery Group Ltd. | | | |
Daqin Railway Co. Ltd., Class A | | | |
Geely Automobile Holdings Ltd. | | | |
Haier Smart Home Co. Ltd., Class H | | | |
Industrial & Commercial Bank of China Ltd., Class H | | | |
| | | |
Kweichow Moutai Co. Ltd., Class A | | | |
Meihua Holdings Group Co. Ltd., Class A | | | |
| | | |
People’ s Insurance Co. Group of China Ltd., Class H | | | |
SAIC Motor Corp. Ltd., Class A | | | |
Shanghai Pharmaceuticals Holding Co. Ltd., Class H | | | |
| | | |
Weichai Power Co. Ltd., Class A | | | |
Zijin Mining Group Co. Ltd., Class H | | | |
| | | |
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Hellenic Telecommunications Organization SA, Class R | | | |
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MOL Hungarian Oil & Gas PLC | | | |
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Colgate-Palmolive India Ltd. | | | |
Dr Reddy’s Laboratories Ltd. | | | |
Dr Reddy’s Laboratories Ltd., ADR | | | |
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Tata Consultancy Services Ltd. | | | |
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Bank Mandiri Persero Tbk PT | | | |
Bank Rakyat Indonesia Persero Tbk PT | | | |
Telkom Indonesia Persero Tbk PT | | | |
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Kuwait Finance House KSCP | | | |
Mobile Telecommunications Co. KSCP | | | |
National Bank of Kuwait SAKP | | | |
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Qatar Electricity & Water Co. QSC | | | |
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Saudi Arabian Oil Co. (c) | | | |
Saudi Basic Industries Corp. | | | |
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Korea Electric Power Corp. (b) | | | |
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Cathay Financial Holding Co. Ltd. | | | |
Chunghwa Telecom Co. Ltd. | | | |
CTBC Financial Holding Co. Ltd. | | | |
E.Sun Financial Holding Co. Ltd. | | | |
Elan Microelectronics Corp. | | | |
Far EasTone Telecommunications Co. Ltd. | | | |
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82024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Defensive Advantage Emerging Markets Fund(Percentages shown are based on Net Assets)
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Hon Hai Precision Industry Co. Ltd. | | | |
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President Chain Store Corp. | | | |
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Realtek Semiconductor Corp. | | | |
Taiwan High Speed Rail Corp. | | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | |
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Bangkok Dusit Medical Services PCL, NVDR | | | |
PTT Exploration & Production PCL, NVDR | | | |
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Turkiye Petrol Rafinerileri A/S, Class A | | | |
United Arab Emirates — 3.9% | |
Abu Dhabi Commercial Bank PJSC | | | |
Abu Dhabi Islamic Bank PJSC | | | |
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Emirates Telecommunications Group Co. PJSC | | | |
First Abu Dhabi Bank PJSC | | | |
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Total Long-Term Investments — 97.4%
(Cost: $9,684,142) | |
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|
Money Market Funds — 2.9% | |
BlackRock Liquidity Funds, T-Fund, Institutional Shares, 5.18%(d)(e) | | | |
Total Short-Term Securities — 2.9%
(Cost: $300,963) | |
Total Investments — 100.3%
(Cost: $9,985,105) | |
Liabilities in Excess of Other Assets — (0.3)% | |
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| Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
| Non-income producing security. |
| Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| |
| Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Cash Funds: Institutional, SL Agency Shares(a) | | | | | | | | | |
BlackRock Liquidity Funds, T-Fund, Institutional Shares | | | | | | | | | |
SL Liquidity Series, LLC, Money Market Series(a) | | | | | | | | | |
| | | | | | | | | |
| As of period end, the entity is no longer held. |
| Represents net amount purchased (sold). |
| All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| | | | Value/
Unrealized
Appreciation
(Depreciation) |
| | | | |
MSCI Emerging Markets Index | | | | |
Schedule of Investments (continued)April 30, 2024
BlackRock Defensive Advantage Emerging Markets Fund
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:
| | | | Foreign
Currency
Exchange
Contracts | | | |
Liabilities — Derivative Financial Instruments | | | | | | | |
Futures contracts
Unrealized depreciation on futures contracts(a) | | | | | | | |
| Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended April 30, 2024, the effect of derivative financial instruments in the Statement of Operations was as follows:
| | | | Foreign
Currency
Exchange
Contracts | | | |
Net Realized Gain (Loss) from: | | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | |
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Average Quarterly Balances of Outstanding Derivative Financial Instruments
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Average notional value of contracts — long | |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
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.
102024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Defensive Advantage Emerging Markets Fund
Fair Value Hierarchy as of Period End (continued)
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Derivative Financial Instruments(a) | | | | |
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| Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
Schedule of Investments11
Statement of Assets and LiabilitiesApril 30, 2024
| BlackRock
Defensive Advantage
Emerging Markets Fund |
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Investments, at value — unaffiliated(a) | |
Investments, at value — affiliated(b) | |
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Cash pledged for futures contracts | |
Foreign currency, at value(c) | |
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Deferred foreign capital gain tax | |
Trustees’ and Officer’s fees | |
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Variation margin on futures contracts | |
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Commitments and contingent liabilities | |
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(a)Investments, at cost—unaffiliated | |
(b)Investments, at cost—affiliated | |
(c)Foreign currency, at cost | |
122024 BlackRock Annual Report to Shareholders
Statement of Assets and Liabilities (continued)April 30, 2024
| BlackRock
Defensive Advantage
Emerging Markets Fund |
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See notes to financial statements.
Statement of OperationsYear Ended April 30, 2024
| BlackRock
Defensive Advantage
Emerging Markets Fund |
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Securities lending income — affiliated — net | |
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Administration — class specific | |
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Transfer agent — class specific | |
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Total expenses excluding interest expense | |
Interest expense — unaffiliated | |
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Administration fees waived | |
Administration fees waived by the Manager — class specific | |
Fees waived and/or reimbursed by the Manager | |
Transfer agent fees waived and/or reimbursed by the Manager — class specific | |
Total expenses after fees waived and/or reimbursed | |
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REALIZED AND UNREALIZED GAIN (LOSS) | |
Net realized gain (loss) from: | |
Investments — unaffiliated(a) | |
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Foreign currency transactions | |
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Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated(b) | |
Foreign currency translations | |
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Net realized and unrealized gain | |
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | |
(a) Net of foreign capital gain tax and capital gain tax refund, if applicable of | |
(b) Net of increase in deferred foreign capital gain tax of | |
See notes to financial statements.
142024 BlackRock Annual Report to Shareholders
Statements of Changes in Net Assets
| BlackRock
Defensive Advantage
Emerging Markets Fund |
| | |
|
INCREASE (DECREASE) IN NET ASSETS | | |
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Net change in unrealized appreciation (depreciation) | | |
Net increase in net assets resulting from operations | | |
DISTRIBUTIONS TO SHAREHOLDERS(a) | | |
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Decrease in net assets resulting from distributions to shareholders | | |
CAPITAL SHARE TRANSACTIONS | | |
Net increase in net assets derived from capital share transactions | | |
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Total increase (decrease) in net assets | | |
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| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
Financial Highlights(For a share outstanding throughout each period)
| BlackRock Defensive Advantage Emerging Markets Fund |
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|
Net asset value, beginning of period | | | | |
| | | | |
Net realized and unrealized gain (loss) | | | | |
Net increase (decrease) from investment operations | | | | |
| | | | |
From net investment income | | | | |
| | | | |
| | | | |
Net asset value, end of period | | | | |
| | | | |
| | | | |
Ratios to Average Net Assets(g) | | | | |
| | | | |
Total expenses after fees waived and/or reimbursed | | | | |
| | | | |
| | | | |
Net assets, end of period (000) | | | | |
| | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit, printing, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.74%. |
See notes to financial statements.
162024 BlackRock Annual Report to Shareholders
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Defensive Advantage Emerging Markets Fund (continued) |
| |
| | | | |
|
Net asset value, beginning of period | | | | |
| | | | |
Net realized and unrealized gain | | | | |
Net increase from investment operations | | | | |
| | | | |
From net investment income | | | | |
| | | | |
| | | | |
Net asset value, end of period | | | | |
| | | | |
| | | | |
Ratios to Average Net Assets(g) | | | | |
| | | | |
Total expenses after fees waived and/or reimbursed | | | | |
| | | | |
| | | | |
Net assets, end of period (000) | | | | |
| | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit, printing, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.99% |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Defensive Advantage Emerging Markets Fund (continued) |
| |
| | | | |
|
Net asset value, beginning of period | | | | |
| | | | |
Net realized and unrealized gain | | | | |
Net increase from investment operations | | | | |
| | | | |
From net investment income | | | | |
| | | | |
| | | | |
Net asset value, end of period | | | | |
| | | | |
| | | | |
Ratios to Average Net Assets(g) | | | | |
| | | | |
Total expenses after fees waived and/or reimbursed | | | | |
| | | | |
| | | | |
Net assets, end of period (000) | | | | |
| | | | |
| Commencement of operations. |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit, printing, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 4.40%. |
See notes to financial statements.
182024 BlackRock Annual Report to Shareholders
Notes to Financial Statements
BlackRock FundsSM (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Massachusetts business trust. BlackRock Defensive Advantage Emerging Markets Fund (the “Fund”) is a series of the Trust. The Fund is classified as diversified.
The Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional and Class K Shares are sold only to certain eligible investors. Investor A Shares bear certain expenses related to shareholder servicing of such shares. Investor A Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures.
| | | |
Institutional and Class K Shares | | | |
| | | |
| 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. |
The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of funds referred to as the BlackRock Multi-Asset Complex.
2.
SIGNIFICANT ACCOUNTING POLICIES
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Dividends from foreign securities where the ex-dividend dates may have passed are subsequently recorded when the Fund is informed of the ex-dividend dates. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.
Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
The Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Foreign taxes withheld”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of April 30, 2024, if any, are disclosed in the Statement of Assets and Liabilities.
The Fund files withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Fund may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statement of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Bank Overdraft: The Fund had outstanding cash disbursements exceeding deposited cash amounts at the custodian during the reporting period. The Fund is obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statement of Operations.
Collateralization: If required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
Notes to Financial Statements19
Notes to Financial Statements (continued)
Distributions: Distributions paid by the Fund are recorded on the ex-dividend dates. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.
Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.
3.
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) has approved the designation of the Fund’s Manager as the valuation designee for the Fund. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:
•Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last 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”).
•Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the Fund uses current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs.
| Standard Inputs Generally Considered By The Valuation Committee And Third-Party Pricing Services |
| | recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; |
| | recapitalizations and other transactions across the capital structure; and |
| | market multiples of comparable issuers. |
| | future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; |
| | quoted prices for similar investments or assets in active markets; and |
| | other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. |
| | audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; |
| | changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; |
| | relevant news and other public sources; and |
| | known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company. |
Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate
202024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.
The Private Companies are not subject to the public company disclosure, timing, and reporting standards applicable to other investments held by the Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date the Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Fund could receive upon the sale of the investment.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:
•Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access;
•Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and
•Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4.
SECURITIES AND OTHER INVESTMENTS
Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Fund’s Schedule of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.
Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BlackRock. BlackRock’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value 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 Fund.
Notes to Financial Statements21
Notes to Financial Statements (continued)
5.
DERIVATIVE FINANCIAL INSTRUMENTS
The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
6.
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory: The Trust, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.
For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:
The Manager entered into a sub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of the Manager. The Manager pays BIL for services it provides for that portion of the Fund for which BIL acts as sub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Fund to the Manager.
Service Fees: The Trust, on behalf of the Fund, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of the Fund as follows:
BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.
For the year ended April 30, 2024, the following table shows the class specific service fees borne directly by each share class of the Fund:
| |
BlackRock Defensive Advantage Emerging Markets Fund | |
Administration: The Trust, on behalf of the Fund, entered into an Administration Agreement with the Manager, an indirect, wholly-owned subsidiary of BlackRock, to provide administrative services. For these services, the Manager receives an administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of the Fund. The administration fee, which is shown as administration in the Statement of Operations, is paid at the annual rates below.
| |
| |
$500 million - $1 billion | |
| |
| |
222024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
In addition, the Manager charges each of the share classes an administration fee, which is shown as administration — class specific in the Statement of Operations, at an annual rate of 0.02% of the average daily net assets of each respective class.
For the year ended April 30, 2024, the following table shows the class specific administration fees borne directly by each share class of the Fund:
| | | | |
BlackRock Defensive Advantage Emerging Markets Fund | | | | |
Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended April 30, 2024, the Fund did not pay any amounts to affiliates in return for these services.
The Manager maintains a call center that is responsible for providing certain shareholder services to the Fund. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended April 30, 2024, the Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statement of Operations:
For the year ended April 30, 2024, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:
| | | | |
BlackRock Defensive Advantage Emerging Markets Fund | | | | |
Other Fees: For the year ended April 30, 2024, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares for a total of $151.
Expense Limitations, Waivers and Reimbursements: The Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver") through June 30, 2025. The contractual agreement may be terminated upon 90 days’ notice by a majority of the trustees who are not “interested persons” of the Trust, as defined in the 1940 Act (“Independent Trustees”), or by a vote of a majority of the outstanding voting securities of the Fund. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended April 30, 2024, the amount waived was $163.
The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2025. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Fund. For the year ended April 30, 2024, there were no fees waived by the Manager pursuant to this arrangement.
The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:
The Manager has agreed not to reduce or discontinue the contractual expense limitations through June 30, 2025, unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Fund. For the year ended April 30, 2024, amounts included in the Statement of Operations were as follows:
| Fees Waived and/or Reimbursed
by the Manager |
BlackRock Defensive Advantage Emerging Markets Fund | |
| Administration
Fees Waived |
BlackRock Defensive Advantage Emerging Markets Fund | |
Notes to Financial Statements23
Notes to Financial Statements (continued)
In addition, these amounts waived and/or reimbursed by the Manager are included in administration fees waived by the Manager — class specific, transfer agent fees waived and/or reimbursed by the Manager — class specific, respectively, in the Statement of Operations. For the year ended April 30, 2024, class specific expense waivers and/or reimbursements were as follows:
| | | | |
Administration fees waived by the Manager — class specific | | | | |
| | | | |
Transfer agent fees waived and/or reimbursed by the Manager — class specific | | | | |
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 Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional, managed by the Manager or its affiliates. However, BIM has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, redemption fee, distribution fee or service fee. The money market fund in which the cash collateral has been reinvested may impose a discretionary liquidity fee of up to 2% of the value redeemed, if such fee, is determined to be in the best interests of such money market fund.
Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral, (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.
In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment 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 the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the year ended April 30, 2024, the Fund paid BIM $29 for securities lending agent services.
Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow and lend under the Interfund Lending Program.
A lending BlackRock fund may lend in aggregate up to 15% of its net assets but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency 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 April 30, 2024, the Fund did not participate in the Interfund Lending Program.
Trustees and Officers: Certain trustees and/or officers of the Trust are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Trust’s Chief Compliance Officer, which is included in Trustees and Officer in the Statement of Operations.
For the year ended April 30, 2024, purchases and sales of investments, excluding short-term securities, were $18,388,162 and $18,167,271, respectively.
It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on the Fund’ s state and local tax returns may remain open for an additional year depending upon the jurisdiction.
Management has analyzed tax laws and regulations and their application to the Fund as of April 30, 2024, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.
242024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
The tax character of distributions paid was as follows:
| | |
BlackRock Defensive Advantage Emerging Markets Fund | | |
| | |
As of April 30, 2024, the tax components of accumulated earnings (loss) were as follows:
| Undistributed
Ordinary Income | | | |
BlackRock Defensive Advantage Emerging Markets Fund | | | | |
| Amounts available to offset future realized capital gains. |
| The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and the realization for tax purposes of unrealized gains (losses) on certain futures contracts. |
During the year ended April 30, 2024, the Fund utilized the following amount of its capital loss carryforward:
| |
BlackRock Defensive Advantage Emerging Markets Fund | |
As of April 30, 2024, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
| | Gross Unrealized
Appreciation | Gross Unrealized
Depreciation | Net Unrealized
Appreciation
(Depreciation) |
BlackRock Defensive Advantage Emerging Markets Fund | | | | |
The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is party to a 364-day, $2.40 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2025 unless extended or renewed. Prior to April 11, 2024, the aggregate commitment amount was $2.50 billion. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended April 30, 2024, the Fund did not borrow under the credit agreement.
In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. The Fund’ s prospectus provides details of the risks to which the Fund is subject.
The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to discretionary liquidity fees under certain circumstances.
Market Risk: Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain additional risks that do not generally apply to investments in securities of issuers in more developed capital markets, such as (i) low or nonexistent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities; (ii) lack of reliable settlement procedures and significant delays in registering the transfer of securities; (iii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iv) lack of publicly available or reliable information about issuers as a result of not being subject to the same degree of regulatory requirements and accounting, auditing and financial reporting standards; and (v) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments.
Notes to Financial Statements25
Notes to Financial Statements (continued)
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.
The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.
Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its Schedule of Investments.
The Fund invests a substantial amount of its assets in issuers located in a single country or a limited number of countries. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in those countries may have a significant impact on their investment performance and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedule of Investments.
The Fund invests a significant portion of its assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Fund’s investments.
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.
262024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
11.
CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for each class were as follows:
| | |
| | | | |
BlackRock Defensive Advantage Emerging Markets Fund | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
As of April 30, 2024, shares owned by BlackRock Financial Management, Inc., an affiliate of the Fund, were as follows:
| | | |
BlackRock Defensive Advantage Emerging Markets Fund | | | |
Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
Notes to Financial Statements27
Report of Independent Registered Public Accounting Firm
To the Shareholders of BlackRock Defensive Advantage Emerging Markets Fund and the Board of Trustees of BlackRock FundsSM:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of BlackRock Defensive Advantage Emerging Markets Fund of BlackRock FundsSM (the “Fund”), including the schedule of investments, as of April 30, 2024, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the three years in the period then ended and for the period from December 21, 2020 (commencement of operations) through April 30, 2021, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of April 30, 2024, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and for the period from December 21, 2020 (commencement of operations) through April 30, 2021, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the 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 Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of April 30, 2024, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Boston, Massachusetts
June 24, 2024
We have served as the auditor of one or more BlackRock investment companies since 1992.
282024 BlackRock Annual Report to Shareholders
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 April 30, 2024:
| |
BlackRock Defensive Advantage Emerging Markets Fund | |
The Fund intend to pass through to their shareholders the following amounts, or maximum amounts allowable by law, of foreign source income earned and foreign taxes paid for the fiscal year ended April 30, 2024:
| Foreign Source
Income Earned | |
BlackRock Defensive Advantage Emerging Markets Fund | | |
The Fund hereby designates the following amount, or maximum amount allowable by law, of distributions from direct federal obligation interest for the fiscal year ended April 30, 2024:
| Federal Obligation
Interest |
BlackRock Defensive Advantage Emerging Markets Fund | |
The law varies in each state as to whether and what percent of ordinary income dividends attributable to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.
The Fund hereby designates the following amount, or maximum amount allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended April 30, 2024:
| |
BlackRock Defensive Advantage Emerging Markets Fund | |
The Fund hereby designates the following amount, or maximum amount allowable by law, as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended April 30, 2024:
| Interest-
Related
Dividends |
BlackRock Defensive Advantage Emerging Markets Fund | |
Important Tax Information29
Statement Regarding Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), BlackRock FundsSM (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for BlackRock Defensive Advantage Emerging Markets Fund (the “Fund”), a series of the Trust, which is reasonably designed to assess and manage the Fund’s liquidity risk.
The Board of Trustees (the “Board”) of the Trust, on behalf of the Fund, met on November 16-17, 2023 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Advisors, LLC or BlackRock Fund Advisors (“BlackRock”), each an investment adviser to certain BlackRock funds, as the program administrator for the Fund’s Program, as applicable. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of the Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2022 through September 30, 2023 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing the Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish the Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to the Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including the imposition of capital controls in certain countries.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing the Fund’s liquidity risk, as follows:
a)
The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end fund structure with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Where a fund participated in borrowings for investment purposes (such as tender option bonds or reverse repurchase agreements), such borrowings were factored into the Program’s calculation of a fund’s liquidity bucketing. A fund’s derivative exposure was also considered in such calculation.
b)
Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish the Fund’s reasonably anticipated trading size utilized for liquidity classifications. The Fund has adopted an in-kind redemption policy which may be utilized to meet larger redemption requests. The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.
c)
Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered the terms of the credit facility committed to the Fund, the financial health of the institution providing the facility and the fact that the credit facility is shared among multiple funds (including that a portion of the aggregate commitment amount is specifically designated for BlackRock Floating Rate Income Portfolio, a series of BlackRock Funds V, and BlackRock Floating Rate Loan ETF, a series of BlackRock ETF Trust II). The Committee also considered other types of borrowing available to the funds, such as the ability to use reverse repurchase agreements and interfund lending, as applicable.
There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
302024 BlackRock Annual Report to Shareholders
Trustee and Officer Information
|
| | Principal Occupation(s) During Past 5 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 5 Years |
| Chair of the Board
(Since 2019) and
Trustee
(Since 2015) | 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 | |
| | 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 from 2018 to 2022; Advisory Board Member, Bridges Fund Management from 2016 to 2018; 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; Member of the President’s Counsel, Commonfund since 2023. | 28 RICs consisting of 164 Portfolios | |
| | Senior advisor, Insignia since 2024; Chief Investment Officer, Williams College from 2006 to 2023; 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 | |
| | 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 | |
| | Director, Pioneer Public Interest Law Center since 2023; Director, Charles Stark Draper Laboratory, Inc. from 2013 to 2021; 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 | |
Trustee and Officer Information31
Trustee and Officer Information (continued)
Independent Trustees(a) (continued) |
| Position(s) Held (Length of Service)(c) | Principal Occupation(s) During Past 5 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 5 Years |
| | Director, Park Indemnity Ltd. (captive insurer) from 2010 to 2022. | 28 RICs consisting of 164 Portfolios | GrafTech International Ltd. (materials manufacturing); Sealed Air Corp. (packaging); WABCO (commercial vehicle safety systems) from 2015 to 2020; Hertz Global Holdings (car rental) from 2015 to 2021. |
Cynthia A. Montgomery
1952 | | Professor, Harvard Business School since 1989. | 28 RICs consisting of 164 Portfolios | |
| | Chair of the Board of Phoenix Art Museum since 2022 and Trustee thereof since 2018; Chair of the Investment Committee of The Arizona Community Foundation since 2022 and Trustee thereof since 2020; 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; Member of Affordable Housing Supply Board of Jackson, Wyoming from 2017 to 2022; Member, Investment Funds Committee, State of Wyoming from 2017 to 2023; 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. | 28 RICs consisting of 164 Portfolios | |
| | 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 2001, Emeritus since 2022; 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 | |
| | Advisory Board Member, Grossman School of Business at the University of Vermont since 2023; Advisory Board Member, Scientific Financial Systems since 2022; General Partner of Neon Liberty Capital Management, LLC from 2003 to 2023; Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; Director, Boston Hedge Fund Group from 2009 to 2018; Director, Massachusetts Council on Economic Education from 2013 to 2015; Director, Woodstock Ski Runners from 2013 to 2022. | 28 RICs consisting of 164 Portfolios | |
322024 BlackRock Annual Report to Shareholders
Trustee and Officer Information (continued)
Interested Trustees(a)(d) |
| | Principal Occupation(s) During Past 5 Years | Number of BlackRock-Advised
(“RICs”) Consisting of Investment
Portfolios (“Portfolios”) Overseen | Public Company and Other
Investment Company
Directorships Held During
Past 5 Years |
| | 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. | 96 RICs consisting of 266 Portfolios | |
| 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. | 98 RICs consisting of 268 Portfolios | |
| The address of each Trustee is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. |
| Independent Trustees serve until their resignation, retirement, removal or death, or until December 31 of the year in which they turn 75. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate. |
| 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. Furthermore, effective January 1, 2019, three BlackRock Fund Complexes were realigned and consolidated into two BlackRock 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: Cynthia A. Montgomery, 1994; Kenneth L. Urish, 1999; Lena G. Goldberg, 2016; Henry R. Keizer, 2016; Donald C. Opatrny, 2015. |
| 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. |
| Mr. Perlowski is also a trustee of the BlackRock Credit Strategies Fund and BlackRock Private Investments Fund. |
Trustee and Officer Information33
Trustee and Officer Information (continued)
Officers Who Are Not Trustees(a) |
| Position(s) Held
(Length of Service) | Principal Occupation(s) During Past 5 Years |
| Vice President
(Since 2022) | Managing Director of BlackRock, Inc. since 2002; Head of Global Cash Management and Head of Securities Lending within BlackRock’s Global Markets Group since 2022; Member of BlackRock’s Global Operating Committee since 2016 and Human Capital Committee since 2023. |
| Vice President
(Since 2014) | Managing Director of BlackRock, Inc. since 2016. |
| Chief Financial Officer
(Since 2021) | Managing Director of BlackRock, Inc. since September 2019; Executive Vice President of PIMCO from 2016 to 2019. |
| | Managing Director of BlackRock, Inc. since 2007. |
| Chief Compliance Officer
(Since 2023) | Managing Director of BlackRock, Inc. since 2018; Chief Compliance Officer of the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the iShares Complex since 2023; Deputy Chief Compliance Officer for the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed- Income Complex and the iShares Complex from 2014 to 2023. |
| 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 BlackRock, Inc. since 2018. |
| The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. |
| 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 July 1, 2023, Aaron Wasserman replaced Charles Park as Chief Compliance Officer of the Trust. |
Effective June 1, 2024, Lori Richards was appointed as a Trustee of the Trust. |
342024 BlackRock Annual Report to Shareholders
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Fund.
General Information
Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Fund may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate BlackRock’s website in this report.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports, Rule 30e-3 notices and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Fund at (800) 441-7762.
Availability of Quarterly Schedule of Investments
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT is available on the SEC’s website at sec.gov. Additionally, the Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at blackrock.com/fundreports.
Availability of Proxy Voting Policies, Procedures and Voting Records
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and information about how the Fund voted proxies relating to securities held in the Fund’s portfolio during the most recent 12-month period ended June 30 is available without charge, upon request (1) by calling (800) 441-7762; (2) on the BlackRock website at blackrock.com; and (3) on the SEC’s website at sec.gov.
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Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
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Additional Information (continued)
BlackRock Privacy Principles (continued)
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BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
Fund and Service Providers
Investment Adviser
BlackRock Advisors, LLC
Wilmington, DE 19809
Sub-Adviser
BlackRock International Limited
Edinburgh, EH3 8BL
United Kingdom
Accounting Agent and Custodian
State Street Bank and Trust Company
Boston, MA 02114
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Wilmington, DE 19809
Distributor
BlackRock Investments, LLC
New York, NY 10001
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
Legal Counsel
Sidley Austin LLP
New York, NY 10019
Address of the Fund
100 Bellevue Parkway
Wilmington, DE 19809
362024 BlackRock Annual Report to Shareholders
Glossary of Terms Used in this Report
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| American Depositary Receipt |
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| Morgan Stanley Capital International |
| Non-Voting Depositary Receipt |
| |
| Public Joint Stock Company |
Glossary of Terms Used in This Report37
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Want to know more?
blackrock.com | 800-441-7762
This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless preceded or accompanied by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.
April 30, 2024
|
• BlackRock Advantage Emerging Markets Fund |
• BlackRock Global Equity Market Neutral Fund |
Not FDIC Insured • May Lose Value • No Bank Guarantee |
Rob KapitoPresident, BlackRock Advisors, LLCDear Shareholder,
The combination of continued economic growth and cooling inflation provided a supportive backdrop for investors during the 12-month reporting period ended April 30, 2024. Higher interest rates helped to rein in inflation, and the Consumer Price Index decelerated substantially while remaining above pre-pandemic levels. A moderating labor market helped ease inflationary pressure, although wages continued to grow. Wage and job growth powered robust consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war has had a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were robust during the period, as interest rates stabilized and the economy proved to be more resilient than many investors expected. The U.S. economy continued to show strength, and growth further accelerated in the second half of 2023. Large-capitalization U.S. stocks posted particularly substantial gains, supported by the performance of a few notable technology companies, while small-capitalization U.S. stocks’ advance was slower but still impressive. Meanwhile, both international developed market equities and emerging market stocks also gained, albeit at a notably slower pace than that of U.S. stocks.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. However, higher yields drove solid gains in shorter-duration U.S. Treasuries. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates twice during the 12-month period, but paused its tightening after its July meeting. The Fed also continued to reduce its balance sheet by not replacing some of the securities that reach maturity.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has stopped tightening for now, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period, and recent statements from the Fed seem to support this view. In this new regime, we anticipate greater volatility and dispersion of returns, creating more opportunities for selective portfolio management.
Looking at developed market stocks, we have an overweight stance on U.S. stocks overall, particularly given the promise of emerging AI technologies. We are also overweight Japanese stocks as shareholder-friendly policies generate increased investor interest, although we maintain an underweight stance on European stocks. In credit, we believe there are selective opportunities in the near term despite tighter credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
Total Returns as of April 30, 2024 |
| | |
U.S. large cap equities
(S&P 500® Index) | | |
U.S. small cap equities
(Russell 2000® Index) | | |
International equities
(MSCI Europe, Australasia,
Far East Index) | | |
Emerging market equities
(MSCI Emerging Markets Index) | | |
3-month Treasury bills
(ICE BofA 3-Month
U.S. Treasury Bill Index) | | |
U.S. Treasury securities
(ICE BofA 10-Year
U.S. Treasury Index) | | |
U.S. investment grade bonds
(Bloomberg U.S. Aggregate
Bond Index) | | |
Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index) | | |
U.S. high yield bonds
(Bloomberg U.S. Corporate
High Yield 2%
Issuer Capped Index) | | |
Past performance is not an indication of future results. Index
performance is shown for illustrative purposes only. You
cannot invest directly in an index. |
2This Page is not Part of Your Fund Report
Fund Summary as of April 30, 2024
BlackRock Advantage Emerging Markets Fund
Investment Objective
BlackRock Advantage Emerging Markets Fund’s (the “Fund”) investment objective is to seek long-term capital appreciation.
Portfolio Management Commentary
How did the Fund perform?
For the 12-month period ended April 30, 2024, all of the Fund’s share classes underperformed its benchmark, the MSCI Emerging Markets Index.
What factors influenced performance?
While emerging market equities ended the period in positive territory, they continued to significantly trail their developed market counterparts. The period was highlighted by heightened volatility driven by concerns around geopolitical tensions, central bank policy shifts and sector-specific trends. Performance during the first half of the period was challenged by weakened sentiment with respect to China alongside a broader risk-off trend on concerns around inflation and interest rates. Indian equities were a bright spot as global investors increasingly viewed that market as an alternative to China. Additionally, Poland continued its rebound since the onset of the Ukraine conflict. Asian equity market performance was supported late in the period given signs of stabilization from China and as optimism around artificial intelligence (“AI”) drove the semiconductor sector higher. In style terms, there was a notable rotation in performance leadership, with value dominating early while momentum came to the forefront late in the period.The Fund performance relative to the benchmark was negatively impacted as macro measures detracted amid changing leadership and sentiment during the period. As investors flipped from “higher-for-longer” to “peak-interest rate” scenarios rewarding growth, performance for certain country insights was negatively impacted. Further, an insight looking at informed investor positioning drove an unsuccessful overweight to Brazil. Elsewhere, text-based, quality-related insights analyzing companies based on industry-specific key performance indicators motivated an unsuccessful underweight in India. Finally, certain sentiment measures also lagged including insights designed to evaluate broker equity position concentration, import and shipping port availability, and contrarian market sentiment.
Fundamental measures proved additive as these benefited from interest rate moves that broadly rewarded value styles early in the period. Traditional valuation insights tracking company sales, cash flow, dividends and other financial metrics highlighted contributions, driving successful positioning around Chinese offshore names. Elsewhere, certain sentiment insights also performed well including trend-based insights designed to evaluate sentiment from analysts and informed investors which helped correctly position the portfolio around the AI narrative, most notably through an overweight to Taiwanese technology companies. Additionally, a text-based insight looking at analyst reports drove an overweight to Poland that benefited performance.
The Fund’s cash position had no material impact on performance.
Describe recent portfolio activity.
Over the course of the period, the portfolio maintained a balanced allocation of risk across all major return drivers. There were, however, several new signals added within the stock selection group of insights. The Fund built upon its alternative data capabilities with enhanced data sets that captured informed investor positioning in specific regions. Additionally, the Fund added to its complex of consumer intent insights with a measure that looks towards web activity as a measure of potential revenue growth. The Fund also further developed its country-specific employee sentiment data sets in Asia. Finally, given geopolitical tensions, the Fund developed a new insight analyzing the impact as manufacturing activity is shifted across countries.
Describe portfolio positioning at period end.
Relative to the benchmark, the Fund ended the reporting period positioned essentially neutrally from a sector and country perspective. The Fund had a slight overweight to the information technology and industrials sectors and a slight underweight to financials and materials. The Fund had a slight overweight to Taiwan and a slight underweight to Mexico.
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.
42024 BlackRock Annual Report to Shareholders
Fund Summary as of April 30, 2024(continued)
BlackRock Advantage Emerging Markets Fund
GROWTH OF $10,000 INVESTMENT 
(a)
Assuming maximum sales charges, if any, transaction costs and other operating expenses, including investment advisory fees. Institutional Shares do not have a sales charge.
(b)
Under normal circumstances, the Fund seeks to invest at least 80% of its net assets plus the amount of any borrowings for investment purposes in equity securities issued by, or tied economically to, companies in emerging markets and derivatives that have similar economic characteristics to such securities. The Fund’s total returns prior to June 12, 2017 are the returns of the Fund when it followed different investment strategies under the name BlackRock Emerging Markets Long/Short Equity Fund.
(c)
An index that captures large- and mid-cap representation across Emerging Markets countries. The index covers approximately 85% of the free float-adjusted market capitalization in each country.
Performance
| Average Annual Total Returns(a)(b) |
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MSCI Emerging Markets Index | | | | | | |
| 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. |
| Under normal circumstances, the Fund seeks to invest at least 80% of its net assets plus the amount of any borrowings for investment purposes in equity securities issued by, or tied economically to, companies in emerging markets and derivatives that have similar economic characteristics to such securities. The Fund’s total returns prior to June 12, 2017 are the returns of the Fund when it followed different investment strategies under the name BlackRock Emerging Markets Long/Short Equity Fund. |
N/A — Not applicable as the 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.
Expense Example
| | | |
| Beginning
Account Value
(11/01/23) | Ending
Account Value
(04/30/24) | Expenses
Paid During
the Period(a) | Beginning
Account Value
(11/01/23) | Ending
Account Value
(04/30/24) | Expenses
Paid During
the Period(a) | |
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| 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 182/366 (to reflect the one-half year period shown). |
See “Disclosure of Expenses” for further information on how expenses were calculated.
Fund Summary as of April 30, 2024(continued)
BlackRock Advantage Emerging Markets Fund
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Liabilities in Excess of Other Assets | |
| Rounds to more than (0.1)% of net assets. |
| Includes holdings within countries/geographic regions that are less than 1.0% of net assets. Please refer to the Schedule of Investments for such countries/geographic regions. |
62024 BlackRock Annual Report to Shareholders
Fund Summary as of April 30, 2024
BlackRock Global Equity Market Neutral Fund
Investment Objective
BlackRock Global Equity Market Neutral Fund’s (the “Fund”) investment objective is to seek total return over the long term.
Portfolio Management Commentary
How did the Fund perform?
For the 12-month period ended April 30, 2024, all of the Fund’s share classes outperformed its benchmark, the ICE BofA 3-Month U.S. Treasury Bill Index.
What factors influenced performance?
Global equities generally enjoyed strong performance over the period, as resilient macro and micro data combined with excitement around innovation in information technology and healthcare supported sentiment. Market performance was also driven by shifting views around an economic soft-landing and higher-for-longer policy rates. Market leadership was concentrated for much of the period among mega-cap growth stocks but ultimately broadened with several of the stocks that led performance in 2023 struggling in 2024. The improving market breadth helped ease concerns of a potential momentum reversal. International markets kept pace with the United States while displaying much broader market participation, enabling value styles to keep pace with momentum.
The Fund’s stock selection insights were able to identify the dominant trends, initially aligning with a soft-landing expectation and motivating positioning across the artificial intelligence (“AI”) and GLP-1 weight loss themes. Collectively, identifying trends across analyst and executive comments, company linkages, and smart money positioning were key performance drivers. Additionally, alternative data that measures consumer intent performed well across retail stocks amid diverging company results.
Fundamental measures supported performance as both quality and valuation measures drove gains as markets increasingly discerned between AI winners and losers. More broadly, valuation insights drove gains across the United States and Japan, notably in the third quarter of 2023 as higher rates benefited the value style, as well as late in the period through cyclical preferences across consumer durables. Concerns around regional banking were another market theme where quality measures were able to correctly identify the challenges associated with stocks that had deteriorating commercial real estate exposure.
Finally, the yield provided by the Fund’s cash exposure was persistently additive throughout the period. Cash was principally held in conjunction with the Fund taking long and short positions via the use of derivatives, such as contracts for difference. The Fund’s use of derivatives and its cash position had no material impact on performance.
Conversely, the environment proved challenging for macro thematic measures which struggled to keep up with the shifts between competing soft-landing and higher-for-longer narratives. This was notable during sharp inflection points in market performance, specifically in the back half of 2023. In this context, top-down models struggled overall, motivating a cyclical preference heading into the third quarter of 2023 and then pivoting to overly defensive exposures in the fourth quarter. This was partly offset by style-timing macro insights which proved more adept at balancing momentum and value exposures.
Additionally, the sharp rallies seen in December 2023 and February 2024 were a headwind to security selection, as defensive quality measures that prefer balance sheet strength and stability struggled. This weakness was offset by gains from the Fund’s overall slight net long posture alongside the yield from cash holdings.
Describe recent portfolio activity.
Over the course of the period, the portfolio maintained a balanced allocation of risk across all major return drivers. There were, however, several new signals added within the stock selection group of insights. The Fund developed new insights to identify firms that are leading the market in development, deployment and monetization of AI capabilities. This included capturing hiring trends for skills associated with AI as well as executive comments highlighting capabilities over the past several years. Additionally, the Fund developed new insights into capturing trends around GLP-1 weight loss drugs to better understand the impact on firms across sectors.
Describe portfolio positioning at period end.
The Fund’s market timing models remained constructive on the global equity market. However, the size of the modest net long position was trimmed to 7.6% at period end due to the increase in volatility through April 2024.
At period end, proprietary data utilized in managing the Fund pointed to ongoing easing of labor market conditions, despite an upside surprise in the Employment Cost Index. At the same time, analyses across various potential macro regimes pointed to a low risk of the United States falling into a recession. The Fund’s top-down models reflected this mix, with long positions in long duration equities via AI-related large-cap technology stocks and GLP-1 narratives within pharmaceuticals hedged with short exposures across rate-sensitive real estate investment trusts and utilities. Pro-cyclical positioning was tilted towards corporate and government capital expenditures. The Fund was long within industrials across capital goods, defense and commercial services, while short across materials. From a regional perspective, the Fund had exposure to reform and policy normalization in Japan while being short rate-sensitive in Canada and the Nordic countries.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund Summary as of April 30, 2024(continued)
BlackRock Global Equity Market Neutral Fund
GROWTH OF $10,000 INVESTMENT 
(a)
Assuming maximum sales charges, if any, transaction costs and other operating expenses, including investment advisory fees. Institutional Shares do not have a sales charge.
(b)
Under normal circumstances, the Fund invests at least 80% of its total assets in equity instruments and related derivative instruments issued by, or tied economically to, companies located in developed markets.
(c)
An unmanaged index that measures returns of 3-month Treasury Bills. On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 3-Month U.S. Treasury Bill Index (the “Index”). Index data prior to March 1, 2021 is for the Index’s standard pricing time of 3pm. Index data from March 1, 2021 through November 30, 2023 is for a custom 4pm pricing variant of the Index. Index returns beginning on December 1, 2023 reflect the Index’s new standard pricing time of 4pm. The change of the Index’s standard pricing time from 3pm to 4pm resulted in the discontinuation of the custom 4pm pricing variant used from March 1, 2021 through November 30, 2023.
Performance
| Average Annual Total Returns(a) |
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ICE BofA 3-Month U.S. Treasury Bill Index | | | | | | |
| 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. |
N/A — Not applicable as the 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.
Expense Example
| | | |
| Beginning
Account Value
(11/01/23) | Ending
Account Value
(04/30/24) | Expenses
Paid During
the Period(a) | Beginning
Account Value
(11/01/23) | Ending
Account Value
(04/30/24) | Expenses
Paid During
the Period(a) | |
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| 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 182/366 (to reflect the one-half year period shown). |
See “Disclosure of Expenses” for further information on how expenses were calculated.
82024 BlackRock Annual Report to Shareholders
Fund Summary as of April 30, 2024(continued)
BlackRock Global Equity Market Neutral Fund
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Country/Geographic Region | | | |
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| Total investments include the gross values of long and short equity securities of the underlying derivative contracts utilized by the Fund and excludes short-term securities. |
| Includes holdings within countries/geographic regions that are less than 1.0% of total investments. Please refer to the Schedule of Investments for such countries/geographic regions. |
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 of BlackRock Global Equity Market Neutral Fund shown prior to the Class K Shares inception date of March 28, 2016 is that of Institutional Shares. Class K Shares performance of BlackRock Advantage Emerging Markets Fund shown prior to the Class K Shares inception date of January 25, 2018 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.
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 table(s) assume reinvestment of all distributions, if any, at net asset value ("NAV") on the ex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.
BlackRock Advisors, LLC (the "Manager"), 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 investment advisory fees, 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.
Derivative Financial Instruments
The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Funds must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.
102024 BlackRock Annual Report to Shareholders
Schedule of InvestmentsApril 30, 2024
BlackRock Advantage Emerging Markets Fund(Percentages shown are based on Net Assets)
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Cia Siderurgica Nacional SA | | | |
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Telefonica Brasil SA, ADR | | | |
Ultrapar Participacoes SA | | | |
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Latam Airlines Group SA (a) | | | |
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| |
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Alibaba Group Holding Ltd. | | | |
| | | |
BOE Technology Group Co. Ltd., Class A | | | |
Bosideng International Holdings Ltd. | | | |
China Life Insurance Co. Ltd., Class H | | | |
China Longyuan Power Group Corp. Ltd., Class H | | | |
China Merchants Bank Co. Ltd., Class H | | | |
China Pacific Insurance Group Co. Ltd., Class H | | | |
China Petroleum & Chemical Corp., Class H | | | |
China Resources Land Ltd. | | | |
COSCO SHIPPING Holdings Co. Ltd., Class A | | | |
Geely Automobile Holdings Ltd. | | | |
Great Wall Motor Co. Ltd., Class A | | | |
Gree Electric Appliances, Inc. of Zhuhai, Class A | | | |
Industrial & Commercial Bank of China Ltd., Class H | | | |
| | | |
Kweichow Moutai Co. Ltd., Class A | | | |
| | | |
Midea Group Co. Ltd., Class A | | | |
| | | |
| | | |
PDD Holdings, Inc., ADR (a) | | | |
PetroChina Co. Ltd., Class H | | | |
Ping An Insurance Group Co. of China Ltd., Class H | | | |
RiseSun Real Estate Development Co. Ltd., Class A (a) | | | |
SAIC Motor Corp. Ltd., Class A | | | |
| | | |
| | | |
Weichai Power Co. Ltd., Class A | | | |
Wuliangye Yibin Co. Ltd., Class A | | | |
Xiaomi Corp., Class B (a)(b) | | | |
Zijin Mining Group Co. Ltd., Class H | | | |
| | | |
| |
Hellenic Telecommunications Organization SA, Class R | | | |
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| |
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| |
Amara Raja Energy & Mobility Ltd. | | | |
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| | | |
BEML Ltd., (Acquired 01/04/24, Cost: $93,410) (c) | | | |
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| | | |
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Chambal Fertilisers and Chemicals Ltd. | | | |
Computer Age Management Services Ltd. | | | |
Great Eastern Shipping Co. Ltd. | | | |
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L&T Finance Holdings Ltd. | | | |
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Sun Pharmaceutical Industries Ltd. | | | |
Tata Consultancy Services Ltd. | | | |
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| |
Astra International Tbk PT | | | |
Bank Mandiri Persero Tbk PT | | | |
Bank Rakyat Indonesia Persero Tbk PT | | | |
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| |
Kuwait Finance House KSCP | | | |
| |
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| |
Wal-Mart de Mexico SAB de CV | | | |
| |
Bank Polska Kasa Opieki SA | | | |
Powszechna Kasa Oszczednosci Bank Polski SA | | | |
Powszechny Zaklad Ubezpieczen SA | | | |
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| |
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| |
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| | | |
| | | |
| | | |
Schedule of Investments11
Schedule of Investments (continued)April 30, 2024
BlackRock Advantage Emerging Markets Fund(Percentages shown are based on Net Assets)
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| |
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Saudi Basic Industries Corp. | | | |
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HD Hyundai Construction Equipment Co. Ltd. | | | |
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Korea Electric Power Corp. (a) | | | |
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Samsung Electronics Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
Chicony Electronics Co. Ltd. | | | |
ChipMOS Technologies, Inc. | | | |
Chunghwa Telecom Co. Ltd. | | | |
CTBC Financial Holding Co. Ltd. | | | |
E.Sun Financial Holding Co. Ltd. | | | |
Elan Microelectronics Corp. | | | |
Hon Hai Precision Industry Co. Ltd. | | | |
Hon Hai Precision Industry Co. Ltd., GDR | | | |
| | | |
| | | |
| | | |
Powertech Technology, Inc. | | | |
Poya International Co. Ltd. | | | |
| | | |
Realtek Semiconductor Corp. | | | |
| | | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | | |
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | | | |
Visual Photonics Epitaxy Co. Ltd. | | | |
| | | |
| | | |
| |
| | | |
Bangkok Dusit Medical Services PCL, NVDR | | | |
PTT Exploration & Production PCL, NVDR | | | |
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| | | |
| |
| | | |
Migros Ticaret A/S, Class A | | | |
Turkiye Petrol Rafinerileri A/S, Class A | | | |
| | | |
United Arab Emirates — 0.2% | |
First Abu Dhabi Bank PJSC | | | |
| |
| | | |
| |
| | | |
Total Common Stocks — 91.7%
(Cost: $77,790,613) | |
|
|
| |
| | | |
Cia Energetica de Minas Gerais | | | |
CTEEP-Cia de Transmissao de Energia Eletrica Paulista | | | |
| | | |
| | | |
| | | |
| | | |
| |
Sociedad Quimica y Minera de Chile SA | | | |
Total Preferred Securities — 3.2%
(Cost: $3,028,251) | |
Total Long-Term Investments — 94.9%
(Cost: $80,818,864) | |
|
Money Market Funds — 5.1% | |
BlackRock Liquidity Funds, T-Fund, Institutional Shares, 5.18%(e) | | | |
Total Short-Term Securities — 5.1%
(Cost: $4,657,734) | |
Total Investments — 100.0%
(Cost: $85,476,598) | |
Liabilities in Excess of Other Assets — 0.0% | |
| |
| Non-income producing security. |
| Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $113,195, representing 0.1% of its net assets as of period end, and an original cost of $93,410. |
| Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
| Annualized 7-day yield as of period end. |
122024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Advantage Emerging Markets Fund
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Liquidity Funds, T-Fund, Institutional Shares | | | | | | | | | |
SL Liquidity Series, LLC, Money Market Series(b) | | | | | | | | | |
| | | | | | | | | |
| Represents net amount purchased (sold). |
| As of period end, the entity is no longer held. |
| 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. |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| | | | Value/
Unrealized
Appreciation
(Depreciation) |
| | | | |
MSCI Emerging Markets Index | | | | |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| | | | Foreign
Currency
Exchange
Contracts | | | |
Liabilities — Derivative Financial Instruments | | | | | | | |
Futures contracts
Unrealized depreciation on futures contracts(a) | | | | | | | |
| Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended April 30, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:
| | | | Foreign
Currency
Exchange
Contracts | | | |
Net Realized Gain (Loss) from: | | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | |
| | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| |
Average notional value of contracts — long | |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Schedule of Investments13
Schedule of Investments (continued)April 30, 2024
BlackRock Advantage Emerging Markets 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.
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| | | | |
Derivative Financial Instruments(a) | | | | |
| | | | |
| | | | |
| Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
142024 BlackRock Annual Report to Shareholders
Schedule of InvestmentsApril 30, 2024
BlackRock Global Equity Market Neutral Fund(Percentages shown are based on Net Assets)
| | | |
|
| |
Alto Neuroscience, Inc. (a) | | | |
| | | |
| | | |
| | | |
Ibotta, Inc., Class A (a) | | | |
Invesco S&P 500 Equal Weight ETF | | | |
Kyverna Therapeutics, Inc. (a) | | | |
| | | |
| | | |
Palantir Technologies, Inc., Class A (a) | | | |
| | | |
Rubrik, Inc., Class A (a) | | | |
UL Solutions, Inc., Class A (a) | | | |
Total Common Stocks — 3.8%
(Cost: $59,892,093) | |
|
Preferred Stocks — 0.2%(b) |
| |
| | | |
Series 6, (Acquired 12/15/15, Cost: $—)(c) | | | |
| | | |
Illumio, Inc., Series C, (Acquired 03/10/15, Cost: $1,500,001)(c) | | | |
| | | |
Total Preferred Securities — 0.2%
(Cost: $3,250,011) | |
| | | |
U.S. Government Sponsored Agency Securities |
Agency Obligations — 0.2% | |
Federal Home Loan Bank Discount Notes, 4.81%, 12/30/24(d) | | | |
Total U.S. Government Sponsored Agency Securities — 0.2%
(Cost: $2,994,264) | |
U.S. Treasury Obligations |
U.S. Treasury Floating Rate Notes, (3-mo. U.S. Treasury Money Market Yield + 0.25%), 5.57%, 01/31/26(e)(f) | | | |
Total U.S. Treasury Obligations — 1.2%
(Cost: $22,272,960) | |
Total Long-Term Investments — 5.4%
(Cost: $88,409,328) | |
| | | |
|
Money Market Funds — 0.7% | |
BlackRock Liquidity Funds, T-Fund, Institutional Shares, 5.18%(g)(h) | | | |
| | | |
U.S. Treasury Obligations — 99.0% | |
| | | |
5.39%, 05/02/24 - 10/31/24 | | | |
| | | |
Series WI, 5.50%, 05/16/24 | | | |
5.36%, 05/21/24 - 08/06/24 | | | |
5.40%, 05/30/24 - 06/06/24 | | | |
5.34%, 06/04/24 - 09/19/24 | | | |
5.41%, 06/11/24 - 08/27/24 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
5.37%, 07/23/24 - 10/24/24 | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
U.S. Treasury Floating Rate Notes(f) | | | |
(3-mo. U.S. Treasury Money Market Yield + 0.14%), 5.46%, 10/31/24 | | | |
(3-mo. U.S. Treasury Money Market Yield + 0.20%), 5.52%, 01/31/25 | | | |
(3-mo. U.S. Treasury Money Market Yield + 0.17%), 5.53%, 10/31/25 | | | |
| | | |
| | | |
| | | |
| |
Total Short-Term Securities — 99.7%
(Cost: $1,842,410,551) | |
Total Investments — 105.1%
(Cost: $1,930,819,879) | |
Liabilities in Excess of Other Assets — (5.1)% | |
| |
| Non-income producing security. |
| Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy. |
| Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $4,447,937, representing 0.2% of its net assets as of period end, and an original cost of $1,500,001. |
| Rates are discount rates or a range of discount rates as of period end. |
| All or a portion of the security has been pledged as collateral in connection with outstanding OTC derivatives. |
| Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
| |
| Annualized 7-day yield as of period end. |
Schedule of Investments15
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
Affiliates
Investments in issuers considered to be affiliate(s) of the Fund during the year ended April 30, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| | | | | Change in
Unrealized
Appreciation
(Depreciation) | | | | Capital Gain
Distributions
from
Underlying
Funds |
BlackRock Liquidity Funds, T-Fund, Institutional Shares | | | | | | | | | |
| Represents net amount purchased (sold). |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| | | | Value/
Unrealized
Appreciation
(Depreciation) |
| | | | |
| | | | |
S&P 500 Annual Dividend Index | | | | |
S&P 500 Annual Dividend Index | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
OTC Total Return Swaps — Future
| Fixed Amount Paid (Received)
| | | | | Upfront
Premium
Paid
(Received) | Unrealized
Appreciation
(Depreciation) |
FTSE 100 Dividend Index Future December 2024 | | | Morgan Stanley & Co. International PLC | | | | | | |
FTSE 100 Dividend Index Future December 2024 | | | Morgan Stanley & Co. International PLC | | | | | | |
Nikkei Dividend XSIM Future December 2024 | | | | | | | | | |
Nikkei Dividend XSIM Future December 2024 | | | | | | | | | |
Nikkei Dividend XSIM Future December 2024 | | | | | | | | | |
FTSE 100 Dividend Index Future December 2025 | | | | | | | | | |
FTSE 100 Dividend Index Future December 2025 | | | Morgan Stanley & Co. International PLC | | | | | | |
FTSE 100 Dividend Index Future December 2025 | | | Morgan Stanley & Co. International PLC | | | | | | |
Euro Stoxx 50 Dividend Future December 2025 | | | | | | | | | |
Euro Stoxx 50 Dividend Future December 2025 | | | Morgan Stanley & Co. International PLC | | | | | | |
Euro Stoxx 50 Dividend Future December 2025 | | | Morgan Stanley & Co. International PLC | | | | | | |
Nikkei Dividend XSIM Future December 2025 | | | | | | | | | |
162024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
OTC Total Return Swaps — Future (continued)
| Fixed Amount Paid (Received) by the Fund(a) | | | | | Upfront Premium Paid (Received) | Unrealized Appreciation (Depreciation) |
FTSE 100 Dividend Index Future December 2026 | | | Morgan Stanley & Co. International PLC | | | | | | |
Euro Stoxx 50 Dividend Future December 2026 | | | Morgan Stanley & Co. International PLC | | | | | | |
| | | | | | | | | |
| At termination, the fixed amount paid (received) will be exchanged for the total return of the reference entity. |
OTC Total Return Swaps
| | | | | Accrued
Unrealized
Appreciation
(Depreciation) | Net Value of
Reference
Entity | Gross
Notional
Amount
Net Asset
Percentage |
Equity Securities Long/Short | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | Goldman Sachs Bank USA(n) | | | | | |
| | Goldman Sachs Bank USA(p) | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| The Fund receives the total return on a portfolio of long positions underlying the total return swap. The Fund pays the total return on a portfolio of short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. |
| Amount includes $614,698 of net dividends and financing fees. |
| Amount includes $(518,813) of net dividends and financing fees. |
| Amount includes $(2,970,395) of net dividends and financing fees. |
| Amount includes $(649,343) of net dividends and financing fees. |
| Amount includes $(549,435) of net dividends and financing fees. |
| Amount includes $333,738 of net dividends and financing fees. |
| Amount includes $660,258 of net dividends and financing fees. |
| Amount includes $625,415 of net dividends and financing fees. |
| Amount includes $(230,121) of net dividends and financing fees. |
| Amount includes $227,521 of net dividends and financing fees. |
Schedule of Investments17
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
Equity Securities Long/Short (continued)
The following are the specified benchmarks (plus or minus a range) used in determining the variable rate of interest: |
| | | |
| 0-800 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
Bank of Canada Overnight Rate Target (CABROVER)
CHF - Swiss Average Rate O/N (SSARON)
DKK - 1W Copenhagen Interbank Swap Rate (CIBOR)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
HKD - Overnight Index Average (HONIA)
ILS - 1M Tel Aviv Interbank Offer Rate (TELBOR)
JPY - Provisional 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
SEK - 1D Overnight Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Bank Funding Rate (OBFR01) | 0-150 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
Bank of Canada Overnight Rate Target (CABROVER)
CHF - Swiss Average Rate O/N (SSARON)
DKK - 1W Copenhagen Interbank Swap Rate (CIBOR)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
HKD - Overnight Index Average (HONIA)
ILS - 1M Tel Aviv Interbank Offer Rate (TELBOR)
JPY - Provisional 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
SEK - 1D Overnight Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Bank Funding Rate (OBFR01) | 0-50 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
Bank of Canada Overnight Rate Target (CABROVER)
CHF - Swiss Average Rate O/N (SSARON)
DKK - 1M Copenhagen Interbank Offer Rate (CIBOR)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
HKD - Overnight Index Average (HONIA)
JPY - Provisional 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
SSEK - 1D Overnight Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Bank Funding Rate (OBFR01) |
| | | |
| 15-925 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
Bank of Canada Overnight Rate Target (CABROVER)
CHF - Swiss Average Rate O/N (SSARON)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
ILS - 1M Tel Aviv Interbank Offer Rate (TELBOR)
JPY - Provisional 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
SEK - 1D Overnight Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Bank Funding Rate (OBFR01) | 0-475 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
Bank of Canada Overnight Rate Target (CABROVER)
CHF - Swiss Average Rate O/N (SSARON)
DKK - Danish Tom/Next Reference Rate (DETNT/N)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
HKD - Overnight Index Average (HONIA)
ILS - 1M Tel Aviv Interbank Offer Rate (TELBOR)
JPY - 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
NZD - 1D New Zealand Official Overnight Deposit Rate (NZOCO)
SEK - 1D Overnight Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Fed Funds Effective Rate (FEDL01) | 0-1,632 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
Bank of Canada Overnight Rate Target (CABROVER)
CHF - Swiss Average Rate O/N (SSARON)
DKK - Danish Tom/Next Reference Rate (DETNT/N)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
HKD - Overnight Index Average (HONIA)
ILS - 1M Tel Aviv Interbank Offer Rate (TELBOR)
JPY - 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
SEK - 1D Overnight Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Fed Funds Effective Rate (FEDL01) |
182024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| 0-90 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
CAD - 1D Overnight Bank of Canada Repo Rate (CORRA)
CHF - Swiss Average Rate O/N (SSARON)
DKK - Danish Tom/Next Reference Rate (DETNT/N)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
HKD - Overnight Index Average (HONIA)
ILS - 1D Overnight Tel Aviv Interbank Offer Rate (TELBOR)
JPY - Provisional 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
SEK - 1D Overnight Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Fed Funds Effective Rate (FEDL01) | 0-1,414 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
CAD - 1D Overnight Bank of Canada Repo Rate (CORRA)
CHF - Swiss Average Rate O/N (SSARON)
DKK - Danish Tom/Next Reference Rate (DETNT/N)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
HKD - Overnight Index Average (HONIA)
ILS - 1D Overnight Tel Aviv Interbank Offer Rate (TELBOR)
JPY - Provisional 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
NZD - 1D New Zealand Official Overnight Deposit Rate (NZOCO)
SEK - 1D Overnight Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Fed Funds Effective Rate (FEDL01) | 15-2,526 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
CAD - 1D Overnight Bank of Canada Repo Rate (CORRA)
DKK - 1W Copenhagen Interbank Swap Rate (CIBOR)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
HKD - Overnight Index Average (HONIA)
ILS - 1D Overnight Tel Aviv Interbank Offer Rate (TELBOR)
JPY - Provisional 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
NZD - 1M New Zealand Bank Bill Rate (BBR)
SEK - TN Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Bank Funding Rate (OBFR01) |
| | | |
| 15-750 basis points
AUD - 1D Overnight Reserve Bank of Australia Rate (AONIA)
CAD - 1D Overnight Bank of Canada Repo Rate (CORRA)
DKK - 1W Copenhagen Interbank Swap Rate (CIBOR)
EUR - 1D Euro Short Term Rate (ESTR)
GBP - 1D Sterling Overnight Index Average (SONIA)
HKD - Overnight Index Average (HONIA)
ILS - 1D Overnight Tel Aviv Interbank Offer Rate (TELBOR)
JPY - Provisional 1D Overnight Tokyo Average Rate (TONA)
NOK - Norwegian Overnight Weighted Average (NOWA)
NZD - 1M New Zealand Bank Bill Rate (BBR)
SEK - TN Stockholm Interbank Offer Rate (STIBOR)
SGD - Overnight Rate Average (SORA)
USD - 1D Overnight Bank Funding Rate (OBFR01) | | |
The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Bank of America N.A. as of period end, termination date 02/15/28:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Charter Hall Social Infrastructure REIT | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Growthpoint Properties Australia Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pinnacle Investment Management Group Ltd. | | | |
| | | |
| | | |
Silver Lake Resources Ltd. | | | |
| | | |
Ventia Services Group Pty Ltd. | | | |
| | | |
Schedule of Investments19
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
Raiffeisen Bank International AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
AbCellera Biologics, Inc. | | | |
| | | |
| | | |
| | | |
Ag Growth International, Inc. | | | |
| | | |
Boardwalk Real Estate Investment Trust | | | |
| | | |
| | | |
| | | |
Chemtrade Logistics Income Fund, Class EE | | | |
Doman Building Materials Group Ltd. | | | |
| | | |
Major Drilling Group International, Inc. | | | |
| | | |
North American Construction Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Etablissements Maurel et Prom SA | | | |
| | | |
Television Francaise 1 SA | | | |
| | | |
| | | |
| | | |
Bank of Georgia Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Deutsche Pfandbriefbank AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Internet AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Alony Hetz Properties & Investments Ltd. | | | |
| | | |
| | | |
Sapiens International Corp. NV | | | |
| | | |
| | | |
| | | |
Banca Popolare di Sondrio SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | | |
Create Restaurants Holdings, Inc. | | | |
Create SD Holdings Co. Ltd. | | | |
| | | |
| | | |
202024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Doutor Nichires Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Financial Partners Group Co. Ltd. | | | |
FULLCAST Holdings Co. Ltd. | | | |
Furukawa Electric Co. Ltd. | | | |
Futaba Industrial Co. Ltd. | | | |
| | | |
| | | |
Heiwa Real Estate Co. Ltd. | | | |
| | | |
| | | |
Inaba Denki Sangyo Co. Ltd. | | | |
Ishihara Sangyo Kaisha Ltd. | | | |
JCR Pharmaceuticals Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Kissei Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
Kyoritsu Maintenance Co. Ltd. | | | |
| | | |
Megmilk Snow Brand Co. Ltd. | | | |
| | | |
MEITEC Group Holdings, Inc. | | | |
| | | |
Mitsubishi Shokuhin Co. Ltd. | | | |
| | | |
| | | |
Nippon Light Metal Holdings Co. Ltd. | | | |
| | | |
Nisshin Oillio Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Oki Electric Industry Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sanki Engineering Co. Ltd. | | | |
| | | |
| | | |
Senko Group Holdings Co. Ltd. | | | |
Shibaura Machine Co. Ltd. | | | |
| | | |
| | | |
Shibaura Mechatronics Corp. | | | |
SHO-BOND Holdings Co. Ltd. | | | |
Sohgo Security Services Co. Ltd. | | | |
| | | |
Sumitomo Mitsui Construction Co. Ltd. | | | |
Sun Frontier Fudousan Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Towa Pharmaceutical Co. Ltd. | | | |
Toyo Seikan Group Holdings Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yokogawa Bridge Holdings Corp. | | | |
| | | |
| | | |
| | | |
Eurocommercial Properties NV | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
CTT-Correios de Portugal SA | | | |
REN - Redes Energeticas Nacionais SGPS SA | | | |
| | | |
| | | |
| | | |
Frasers Centrepoint Trust | | | |
| | | |
Atlantica Sustainable Infrastructure PLC | | | |
| | | |
Inmobiliaria Colonial Socimi SA | | | |
Merlin Properties Socimi SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments21
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
Corem Property Group AB, B Shares | | | |
| | | |
| | | |
| | | |
| | | |
Inficon Holding AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Jupiter Fund Management PLC | | | |
| | | |
| | | |
| | | |
| | | |
Moneysupermarket.com Group PLC | | | |
| | | |
| | | |
Paragon Banking Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
1-800-Flowers.com, Inc., Class A | | | |
Accel Entertainment, Inc. | | | |
| | | |
| | | |
Albany International Corp., Class A | | | |
| | | |
| | | |
| | | |
Anywhere Real Estate, Inc. | | | |
| | | |
| | | |
| | | |
Atea Pharmaceuticals, Inc. | | | |
| | | |
| | | |
AvidXchange Holdings, Inc. | | | |
| | | |
| | | |
| | | |
Brightsphere Investment Group, Inc. | | | |
Brookdale Senior Living, Inc. | | | |
| | | |
| | | |
Century Communities, Inc. | | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Corcept Therapeutics, Inc. | | | |
Core & Main, Inc., Class A | | | |
| | | |
CSG Systems International, Inc. | | | |
| | | |
Delek U.S. Holdings, Inc. | | | |
| | | |
| | | |
Dime Community Bancshares, Inc. | | | |
| | | |
Donnelley Financial Solutions, Inc. | | | |
| | | |
El Pollo Loco Holdings, Inc. | | | |
Enova International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Federated Hermes, Inc., Class B | | | |
Financial Institutions, Inc. | | | |
First Interstate BancSystem, Inc., Class A | | | |
Fiverr International Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Healthcare Services Group, Inc. | | | |
| | | |
Heidrick & Struggles International, Inc. | | | |
Hims & Hers Health, Inc., Class A | | | |
| | | |
Huron Consulting Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Janus International Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Light & Wonder, Inc., CDI | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Methode Electronics, Inc. | | | |
| | | |
Midland States Bancorp, Inc. | | | |
| | | |
222024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
National Vision Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
NexPoint Residential Trust, Inc. | | | |
NMI Holdings, Inc., Class A | | | |
| | | |
OceanFirst Financial Corp. | | | |
OmniAb, Inc., 12.50 Earnout Shares | | | |
OmniAb, Inc., 15.00 Earnout Shares | | | |
| | | |
Oscar Health, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Perella Weinberg Partners, Class A | | | |
| | | |
| | | |
| | | |
Privia Health Group, Inc. | | | |
| | | |
| | | |
| | | |
Radius Recycling, Inc., Class A | | | |
| | | |
REX American Resources Corp. | | | |
| | | |
| | | |
Sandy Spring Bancorp, Inc. | | | |
SEMrush Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Southside Bancshares, Inc. | | | |
Supernus Pharmaceuticals, Inc. | | | |
| | | |
| | | |
Turning Point Brands, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Vishay Precision Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Total Reference Entity — Long | | | |
| | | |
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| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Lifestyle Communities Ltd. | | | |
| | | |
Neuren Pharmaceuticals Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Cogeco Communications, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Martinrea International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
StorageVault Canada, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Establishment Labs Holdings, Inc. | | | |
Schedule of Investments23
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
NTG Nordic Transport Group A/S, Class A | | | |
Ringkjoebing Landbobank A/S | | | |
| | | |
Scandinavian Tobacco Group A/S, Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
CTS Eventim AG & Co. KGaA | | | |
| | | |
Fraport AG Frankfurt Airport Services Worldwide | | | |
| | | |
Mercer International, Inc. | | | |
Schott Pharma AG & Co. KGaA | | | |
| | | |
| | | |
SUESS MicroTec SE, Class N | | | |
| | | |
| | | |
Golden Agri-Resources Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Enlight Renewable Energy Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Eurogroup Laminations SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Advance Logistics Investment Corp. | | | |
| | | |
| | | |
Advance Residence Investment Corp. | | | |
| | | |
Aichi Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Chikaranomoto Holdings Co. Ltd. | | | |
Chubu Steel Plate Co. Ltd. | | | |
| | | |
| | | |
| | | |
Daikokutenbussan Co. Ltd. | | | |
Daiwa Office Investment Corp. | | | |
| | | |
| | | |
| | | |
First Bank of Toyama Ltd. | | | |
| | | |
| | | |
Fukuyama Transporting Co. Ltd. | | | |
| | | |
| | | |
GMO Financial Holdings, Inc. | | | |
| | | |
Hankyu Hanshin REIT, Inc. | | | |
Heiwa Real Estate REIT, Inc. | | | |
| | | |
| | | |
Hokuhoku Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Japan Prime Realty Investment Corp. | | | |
| | | |
Kanto Denka Kogyo Co. Ltd. | | | |
KeePer Technical Laboratory Co. Ltd. | | | |
| | | |
| | | |
| | | |
Kosaido Holdings Co. Ltd. | | | |
Kumiai Chemical Industry Co. Ltd. | | | |
| | | |
| | | |
Matsui Securities Co. Ltd. | | | |
| | | |
| | | |
Mitsubishi Estate Logistics REIT Investment Corp. | | | |
Mitsui Fudosan Logistics Park, Inc. | | | |
Mitsui-Soko Holdings Co. Ltd. | | | |
Mori Hills REIT Investment Corp. | | | |
Morinaga Milk Industry Co. Ltd. | | | |
| | | |
Nankai Electric Railway Co. Ltd. | | | |
| | | |
| | | |
| | | |
242024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
Nippon Accommodations Fund, Inc. | | | |
Nippon Kanzai Holdings Co. Ltd. | | | |
Nippon Pillar Packing Co. Ltd. | | | |
Nishimatsuya Chain Co. Ltd. | | | |
| | | |
Nomura Micro Science Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ryoyo Ryosan Holdings, Inc. | | | |
| | | |
Septeni Holdings Co. Ltd. | | | |
| | | |
Shin Nippon Biomedical Laboratories Ltd. | | | |
Sinfonia Technology Co. Ltd. | | | |
SKY Perfect JSAT Holdings, Inc. | | | |
| | | |
Star Asia Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Tokyo Steel Manufacturing Co. Ltd. | | | |
| | | |
| | | |
Tri Chemical Laboratories, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
AMG Critical Materials NV | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Greenvolt-Energias Renovaveis SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hufvudstaden AB, A Shares | | | |
| | | |
| | | |
| | | |
| | | |
Surgical Science Sweden AB | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Allreal Holding AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
Emmi AG, Class N, Registered Shares | | | |
Forbo Holding AG, Registered Shares | | | |
| | | |
Interroll Holding AG, Class N, Registered Shares | | | |
| | | |
Mobimo Holding AG, Registered Shares | | | |
| | | |
| | | |
| | | |
St Galler Kantonalbank AG, Class N, Registered Shares | | | |
Swissquote Group Holding SA, Class N, Registered Shares | | | |
Vontobel Holding AG, Class N, Registered Shares | | | |
| | | |
| | | |
Tanzania, United Republic Of | | | |
| | | |
| | | |
| | | |
| | | |
Aston Martin Lagonda Global Holdings PLC | | | |
Auction Technology Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Global Ship Lease, Inc., Class A | | | |
Schedule of Investments25
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United Kingdom (continued) | | | |
Great Portland Estates PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Oxford Nanopore Technologies PLC | | | |
| | | |
| | | |
Smart Metering Systems PLC | | | |
Spirent Communications PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Amerant Bancorp, Inc., Class A | | | |
American Coastal Insurance Corp., Class C | | | |
Apollo Commercial Real Estate Finance, Inc. | | | |
| | | |
Applied Optoelectronics, Inc. | | | |
Ares Commercial Real Estate Corp. | | | |
| | | |
Artesian Resources Corp., Class A | | | |
Atlantic Union Bankshares Corp. | | | |
Avadel Pharmaceuticals PLC | | | |
| | | |
| | | |
Bloom Energy Corp., Class A | | | |
Boston Omaha Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
California Water Service Group | | | |
| | | |
Camping World Holdings, Inc., Class A | | | |
Cass Information Systems, Inc. | | | |
| | | |
| | | |
| | | |
Claros Mortgage Trust, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Designer Brands, Inc., Class A | | | |
DiamondRock Hospitality Co. | | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
Easterly Government Properties, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Enliven Therapeutics, Inc. | | | |
| | | |
| | | |
Enterprise Financial Services Corp. | | | |
| | | |
European Wax Center, Inc., Class A | | | |
| | | |
Evolv Technologies Holdings, Inc., Class A | | | |
Excelerate Energy, Inc., Class A | | | |
F&G Annuities & Life, Inc. | | | |
| | | |
| | | |
First Bancorp/Southern Pines NC | | | |
| | | |
First Commonwealth Financial Corp. | | | |
First Community Bankshares, Inc. | | | |
| | | |
| | | |
| | | |
Gates Industrial Corp. PLC | | | |
| | | |
| | | |
Global Medical REIT, Inc. | | | |
Great Southern Bancorp, Inc. | | | |
Grid Dynamics Holdings, Inc. | | | |
| | | |
| | | |
Highwoods Properties, Inc. | | | |
Hudson Technologies, Inc. | | | |
| | | |
International Bancshares Corp. | | | |
iRhythm Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Liberty Media Corp.-Liberty Live, Class C | | | |
| | | |
Lindblad Expeditions Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
262024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
OneWater Marine, Inc., Class A | | | |
| | | |
Papa John’s International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
PennyMac Financial Services, Inc., Class A | | | |
| | | |
| | | |
| | | |
Plymouth Industrial REIT, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
ProFrac Holding Corp., Class A | | | |
| | | |
| | | |
RCI Hospitality Holdings, Inc. | | | |
| | | |
Reliance Worldwide Corp. Ltd. | | | |
Retail Opportunity Investments Corp. | | | |
Rocket Lab USA, Inc., Class A | | | |
| | | |
| | | |
Seacoast Banking Corp. of Florida | | | |
Sensient Technologies Corp. | | | |
| | | |
Shenandoah Telecommunications Co. | | | |
| | | |
SilverBow Resources, Inc. | | | |
| | | |
Six Flags Entertainment Corp. | | | |
SkyWater Technology, Inc. | | | |
Southern Missouri Bancorp, Inc. | | | |
| | | |
| | | |
StepStone Group, Inc., Class A | | | |
| | | |
Sweetgreen, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Community Banks, Inc. | | | |
United Natural Foods, Inc. | | | |
| | | |
Universal Health Realty Income Trust | | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
Vishay Intertechnology, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
White Mountains Insurance Group Ltd. | | | |
Winnebago Industries, Inc. | | | |
| | | |
| | | |
| | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — Bank of America N.A. | | |
The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Bank of America N.A. as of period end, termination date 02/15/28:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Flight Centre Travel Group Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Liberty Global Ltd., Class C | | | |
| | | |
| | | |
| | | |
| | | |
Alamos Gold, Inc., Class A | | | |
Algonquin Power & Utilities Corp. | | | |
| | | |
| | | |
Brookfield Asset Management Ltd., Class A | | | |
Brookfield Corp., Class A | | | |
| | | |
| | | |
Element Fleet Management Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments27
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
Magna International, Inc. | | | |
| | | |
| | | |
West Fraser Timber Co. Ltd. | | | |
| | | |
| | | |
Budweiser Brewing Co. APAC Ltd. | | | |
| | | |
| | | |
| | | |
Novo Nordisk A/S, Class B | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Cie Generale des Etablissements Michelin SCA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gaztransport Et Technigaz SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Allianz SE, Registered Shares | | | |
Bayerische Motoren Werke AG | | | |
| | | |
K&S AG, Class N, Registered Shares | | | |
| | | |
| | | |
Mercedes-Benz Group AG, Class N | | | |
| | | |
| | | |
| | | |
Siemens AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
Athens International Airport SA | | | |
| | | |
Hang Lung Properties Ltd. | | | |
Melco Resorts & Entertainment Ltd., ADR | | | |
| | | |
| | | |
Swire Pacific Ltd., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Daiwa House Industry Co. Ltd. | | | |
| | | |
| | | |
| | | |
J Front Retailing Co. Ltd. | | | |
Japan Post Holdings Co. Ltd. | | | |
| | | |
| | | |
Kansai Electric Power Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mitsubishi Chemical Group Corp. | | | |
Mizuho Financial Group, Inc. | | | |
| | | |
Nippon Express Holdings, Inc. | | | |
| | | |
Nisshin Seifun Group, Inc. | | | |
| | | |
| | | |
Ono Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sega Sammy Holdings, Inc. | | | |
282024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Skylark Holdings Co. Ltd. | | | |
| | | |
Sumitomo Mitsui Trust Holdings, Inc. | | | |
Takeda Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
Tokyu Fudosan Holdings Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Galaxy Entertainment Group Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gjensidige Forsikring ASA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Industria de Diseno Textil SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
ABB Ltd., Class N, Registered Shares | | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | | |
| | | |
Flughafen Zurich AG, Class N, Registered Shares | | | |
Givaudan SA, Class N, Registered Shares | | | |
| | | |
| | | |
Kuehne & Nagel International AG, Registered Shares | | | |
PSP Swiss Property AG, Class N, Registered Shares | | | |
Sonova Holding AG, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
British American Tobacco PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Land Securities Group PLC | | | |
Marks & Spencer Group PLC | | | |
Moneysupermarket.com Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Advanced Drainage Systems, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Alnylam Pharmaceuticals, Inc. | | | |
| | | |
American Water Works Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Beacon Roofing Supply, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
CACI International, Inc., Class A | | | |
| | | |
| | | |
CH Robinson Worldwide, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments29
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Crowdstrike Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
First American Financial Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Halozyme Therapeutics, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Jack Henry & Associates, Inc. | | | |
James Hardie Industries PLC, CDI | | | |
| | | |
| | | |
| | | |
Lamar Advertising Co., Class A | | | |
Lattice Semiconductor Corp. | | | |
| | | |
| | | |
Manhattan Associates, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Mettler-Toledo International, Inc. | | | |
| | | |
Monolithic Power Systems, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Paramount Global, Class B | | | |
Penske Automotive Group, Inc. | | | |
Performance Food Group Co. | | | |
| | | |
| | | |
| | | |
Pure Storage, Inc., Class A | | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
Reinsurance Group of America, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Service Corp. International | | | |
| | | |
Silicon Laboratories, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Tyson Foods, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bayerische Motoren Werke AG | | | |
Total Reference Entity — Long | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
RenaissanceRe Holdings Ltd. | | | |
| | | |
Alimentation Couche-Tard, Inc. | | | |
| | | |
Canadian Apartment Properties REIT | | | |
| | | |
| | | |
Crescent Point Energy Corp. | | | |
Fairfax Financial Holdings Ltd. | | | |
| | | |
| | | |
302024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
Peyto Exploration & Development Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
SITC International Holdings Co. Ltd. | | | |
| | | |
Wilmar International Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Unibail-Rodamco-Westfield | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hannover Rueck SE, Class N | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Israel Discount Bank Ltd., Class A | | | |
Mobileye Global, Inc., Class A | | | |
Teva Pharmaceutical Industries Ltd., ADR | | | |
| | | |
| | | |
Assicurazioni Generali SpA | | | |
Banca Monte dei Paschi di Siena SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Harmonic Drive Systems, Inc. | | | |
| | | |
Iida Group Holdings Co. Ltd. | | | |
Japan Metropolitan Fund Invest | | | |
Japan Real Estate Investment Corp. | | | |
Keisei Electric Railway Co. Ltd. | | | |
Kintetsu Group Holdings Co. Ltd., Class L | | | |
Kyushu Electric Power Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Nippon Building Fund, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Shizuoka Financial Group, Inc. | | | |
| | | |
| | | |
Square Enix Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
Tohoku Electric Power Co., Inc. | | | |
Tokyo Electric Power Co Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments31
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Oversea-Chinese Banking Corp. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Banco Bilbao Vizcaya Argentaria SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
H & M Hennes & Mauritz AB, B Shares | | | |
Investment AB Latour, B Shares | | | |
| | | |
| | | |
Skandinaviska Enskilda Banken AB, Class A | | | |
Skf Ab B Shares, B Shares | | | |
Svenska Cellulosa AB SCA, Class B | | | |
Svenska Handelsbanken AB, A Shares | | | |
| | | |
Swedish Orphan Biovitrum AB | | | |
| | | |
| | | |
Bachem Holding AG, Class N | | | |
Baloise Holding AG, Class N | | | |
Clariant AG, Class N, Registered Shares | | | |
Helvetia Holding AG, Registered Shares | | | |
| | | |
Swiss Life Holding AG, Class N, Registered Shares | | | |
Swiss Prime Site AG, Registered Shares | | | |
Swisscom AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Kingdom (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
10X Genomics, Inc., Class A | | | |
Affirm Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
American Electric Power Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Baxter International, Inc. | | | |
BJ’s Wholesale Club Holdings, Inc. | | | |
| | | |
| | | |
| | | |
Caesars Entertainment, Inc. | | | |
| | | |
| | | |
| | | |
Choice Hotels International, Inc. | | | |
| | | |
Church & Dwight Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Coca-Cola Consolidated, Inc. | | | |
| | | |
| | | |
Core & Main, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
DoubleVerify Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Dutch Bros, Inc., Class A | | | |
| | | |
322024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
Edwards Lifesciences Corp. | | | |
Endeavor Group Holdings, Inc., Class A | | | |
| | | |
| | | |
Erie Indemnity Co., Class A | | | |
Essential Utilities, Inc. | | | |
Estee Lauder Cos., Inc., Class A | | | |
Extra Space Storage, Inc. | | | |
| | | |
Freshworks, Inc., Class A | | | |
Frontier Communications Parent, Inc. | | | |
| | | |
Graphic Packaging Holding Co. | | | |
| | | |
| | | |
Healthcare Realty Trust, Inc. | | | |
| | | |
Host Hotels & Resorts, Inc. | | | |
| | | |
Hyatt Hotels Corp., Class A | | | |
| | | |
Interactive Brokers Group, Inc., Class A | | | |
International Flavors & Fragrances, Inc. | | | |
Intra-Cellular Therapies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Laboratory Corp. of America Holdings | | | |
| | | |
| | | |
Levi Strauss & Co., Class A | | | |
| | | |
| | | |
LyondellBasell Industries NV, Class A | | | |
MACOM Technology Solutions Holdings, Inc., Class H | | | |
MarketAxess Holdings, Inc. | | | |
Marriott International, Inc., Class A | | | |
| | | |
| | | |
| | | |
National Storage Affiliates Trust | | | |
New Fortress Energy, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pinnacle Financial Partners, Inc. | | | |
| | | |
Procore Technologies, Inc. | | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Raymond James Financial, Inc. | | | |
| | | |
| | | |
Rexford Industrial Realty, Inc. | | | |
Robinhood Markets, Inc., Class A | | | |
| | | |
Ryman Hospitality Properties, Inc. | | | |
| | | |
SentinelOne, Inc., Class A | | | |
| | | |
Simpson Manufacturing Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Take-Two Interactive Software, Inc. | | | |
Teledyne Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Thermo Fisher Scientific, Inc. | | | |
TKO Group Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
West Pharmaceutical Services, Inc. | | | |
| | | |
| | | |
Wyndham Hotels & Resorts, Inc. | | | |
| | | |
Zebra Technologies Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments33
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
NEXTDC Ltd., (Expires 05/09/24, Strike Price AUD 15.40) | | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — Bank of America N.A. | | |
The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Barclays Bank PLC as of period end, termination dates 11/11/24 — 05/08/25:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Liberty Global Ltd., Class C | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yangzijiang Shipbuilding Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Fresenius Medical Care AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Wharf Real Estate Investment Co. Ltd. | | | |
| | | |
| | | |
Bank of Ireland Group PLC | | | |
| | | |
Check Point Software Technologies Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Central Japan Railway Co. | | | |
| | | |
| | | |
| | | |
GMO Payment Gateway, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Kurita Water Industries Ltd. | | | |
| | | |
Murata Manufacturing Co. Ltd. | | | |
| | | |
| | | |
Nomura Real Estate Holdings, Inc. | | | |
| | | |
Recruit Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
Sumitomo Chemical Co. Ltd. | | | |
Sumitomo Electric Industries Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Grab Holdings Ltd., Class A | | | |
Singapore Telecommunications Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Geberit AG, Class N, Registered Shares | | | |
Kuehne & Nagel International AG, Registered Shares | | | |
Lonza Group AG, Registered Shares | | | |
Zurich Insurance Group AG, Class N | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Academy Sports & Outdoors, Inc. | | | |
| | | |
| | | |
Advanced Drainage Systems, Inc. | | | |
Advanced Micro Devices, Inc. | | | |
| | | |
| | | |
Agilent Technologies, Inc. | | | |
Akamai Technologies, Inc. | | | |
| | | |
| | | |
| | | |
Alnylam Pharmaceuticals, Inc. | | | |
| | | |
| | | |
342024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Axcelis Technologies, Inc. | | | |
| | | |
Baker Hughes Co., Class A | | | |
| | | |
| | | |
| | | |
BioMarin Pharmaceutical, Inc. | | | |
Bio-Rad Laboratories, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Builders FirstSource, Inc. | | | |
| | | |
CACI International, Inc., Class A | | | |
| | | |
Cboe Global Markets, Inc. | | | |
CF Industries Holdings, Inc. | | | |
CH Robinson Worldwide, Inc. | | | |
Charter Communications, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Cloudflare, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Comfort Systems USA, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Dell Technologies, Inc., Class C | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
| | | |
ExlService Holdings, Inc. | | | |
Expeditors International of Washington, Inc. | | | |
| | | |
| | | |
| | | |
First American Financial Corp. | | | |
| | | |
| | | |
Floor & Decor Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Fortune Brands Innovations, Inc., Class I | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Halozyme Therapeutics, Inc. | | | |
Hartford Financial Services Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Installed Building Products, Inc. | | | |
International Game Technology PLC | | | |
| | | |
| | | |
Ionis Pharmaceuticals, Inc. | | | |
| | | |
Jack Henry & Associates, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Lamar Advertising Co., Class A | | | |
Lattice Semiconductor Corp. | | | |
| | | |
| | | |
| | | |
Lennox International, Inc. | | | |
Liberty Media Corp.-Liberty SiriusXM | | | |
Lincoln Electric Holdings, Inc. | | | |
| | | |
| | | |
Schedule of Investments35
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
Manhattan Associates, Inc. | | | |
| | | |
Marsh & McLennan Cos., Inc. | | | |
| | | |
Mastercard, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Mettler-Toledo International, Inc. | | | |
| | | |
MGM Resorts International | | | |
| | | |
| | | |
| | | |
Molson Coors Beverage Co., Class B | | | |
Mondelez International, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Neurocrine Biosciences, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Old Dominion Freight Line, Inc. | | | |
O’Reilly Automotive, Inc. | | | |
| | | |
| | | |
| | | |
Paramount Global, Class B | | | |
Penske Automotive Group, Inc. | | | |
| | | |
| | | |
| | | |
Philip Morris International, Inc., CDI | | | |
| | | |
Principal Financial Group, Inc. | | | |
| | | |
| | | |
Pure Storage, Inc., Class A | | | |
| | | |
| | | |
Regeneron Pharmaceuticals, Inc. | | | |
Reinsurance Group of America, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Sarepta Therapeutics, Inc. | | | |
| | | |
| | | |
| | | |
Silicon Laboratories, Inc. | | | |
Smartsheet, Inc., Class A | | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
Stanley Black & Decker, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Taylor Morrison Home Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Therapeutics Corp. | | | |
| | | |
| | | |
Veeva Systems, Inc., Class A | | | |
| | | |
| | | |
Vertex Pharmaceuticals, Inc. | | | |
| | | |
| | | |
| | | |
Westinghouse Air Brake Technologies Corp. | | | |
| | | |
| | | |
| | | |
Zillow Group, Inc., Class C | | | |
| | | |
| | | |
| | | |
Total Reference Entity — Long | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Commonwealth Bank of Australia | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Treasury Wine Estates Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
362024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
RenaissanceRe Holdings Ltd. | | | |
| | | |
Ivanhoe Mines Ltd., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Infineon Technologies AG, Class N | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mobileye Global, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Allegro Microsystems, Inc. | | | |
Bandai Namco Holdings, Inc. | | | |
BayCurrent Consulting, Inc. | | | |
| | | |
Chugai Pharmaceutical Co. Ltd. | | | |
Chugoku Electric Power Co., Inc. | | | |
Cosmo Energy Holdings Co. Ltd. | | | |
Cosmos Pharmaceutical Corp. | | | |
| | | |
Dai-ichi Life Holdings, Inc. | | | |
Electric Power Development Co. Ltd., Class D | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Harmonic Drive Systems, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Isetan Mitsukoshi Holdings Ltd., Class L | | | |
Japan Airport Terminal Co. Ltd. | | | |
Japan Metropolitan Fund Invest | | | |
Japan Petroleum Exploration Co. Ltd. | | | |
Japan Real Estate Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
Kawasaki Heavy Industries Ltd. | | | |
KDX Realty Investment Corp. | | | |
Keisei Electric Railway Co. Ltd. | | | |
| | | |
Kintetsu Group Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Kyushu Electric Power Co., Inc. | | | |
| | | |
M&A Research Institute Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mitsubishi HC Capital, Inc. | | | |
| | | |
| | | |
Nippon Building Fund, Inc. | | | |
Nippon Sanso Holdings Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Nomura Real Estate Master Fund, Inc. | | | |
Odakyu Electric Railway Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Rohto Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Seven & i Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
Shinko Electric Industries Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Square Enix Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Tohoku Electric Power Co., Inc. | | | |
Tokyo Electric Power Co Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments37
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Berkeley Group Holdings PLC | | | |
| | | |
| | | |
Legal & General Group PLC | | | |
Spirax-Sarco Engineering PLC | | | |
| | | |
| | | |
| | | |
| | | |
10X Genomics, Inc., Class A | | | |
| | | |
| | | |
| | | |
Acadia Healthcare Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Air Products and Chemicals, Inc. | | | |
| | | |
| | | |
Alexandria Real Estate Equities, Inc. | | | |
| | | |
| | | |
| | | |
Alpha Metallurgical Resources, Inc. | | | |
| | | |
American Electric Power Co., Inc. | | | |
American Financial Group, Inc. | | | |
American International Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
Apellis Pharmaceuticals, Inc. | | | |
| | | |
Apollo Global Management, Inc. | | | |
Apple Hospitality REIT, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Automatic Data Processing, Inc. | | | |
AvalonBay Communities, Inc. | | | |
| | | |
| | | |
| | | |
Axalta Coating Systems Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
BJ’s Wholesale Club Holdings, Inc. | | | |
| | | |
| | | |
| | | |
Bright Horizons Family Solutions, Inc. | | | |
| | | |
| | | |
Brown-Forman Corp., Class B | | | |
| | | |
| | | |
| | | |
Casella Waste Systems, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Chipotle Mexican Grill, Inc. | | | |
| | | |
| | | |
| | | |
Coca-Cola Consolidated, Inc. | | | |
Cognizant Technology Solutions Corp., Class A | | | |
| | | |
Commerce Bancshares, Inc. | | | |
| | | |
| | | |
Constellation Energy Corp. | | | |
| | | |
Core & Main, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
382024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
Dick’s Sporting Goods, Inc. | | | |
| | | |
| | | |
| | | |
DraftKings, Inc., Class A | | | |
| | | |
| | | |
Dutch Bros, Inc., Class A | | | |
| | | |
| | | |
| | | |
Endeavor Group Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Erie Indemnity Co., Class A | | | |
Estee Lauder Cos., Inc., Class A | | | |
| | | |
| | | |
| | | |
Extra Space Storage, Inc. | | | |
| | | |
Federal Realty Investment Trust | | | |
Fidelity National Information Services, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
GE HealthCare Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Globus Medical, Inc., Class A | | | |
Goldman Sachs Group, Inc. | | | |
Goodyear Tire & Rubber Co. | | | |
Graphic Packaging Holding Co. | | | |
| | | |
| | | |
| | | |
| | | |
Hilton Worldwide Holdings, Inc. | | | |
| | | |
Hyatt Hotels Corp., Class A | | | |
| | | |
| | | |
| | | |
Insight Enterprises, Inc. | | | |
Inspire Medical Systems, Inc. | | | |
Interactive Brokers Group, Inc., Class A | | | |
Intercontinental Exchange, Inc. | | | |
International Business Machines Corp. | | | |
International Flavors & Fragrances, Inc. | | | |
Interpublic Group of Cos., Inc. | | | |
| | | |
United States (continued) | | | |
Intra-Cellular Therapies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Johnson Controls International PLC | | | |
| | | |
| | | |
Kinsale Capital Group, Inc. | | | |
| | | |
| | | |
L3Harris Technologies, Inc. | | | |
Laboratory Corp. of America Holdings | | | |
Lamb Weston Holdings, Inc. | | | |
| | | |
Levi Strauss & Co., Class A | | | |
| | | |
| | | |
Lululemon Athletica, Inc. | | | |
Magnolia Oil & Gas Corp., Class A | | | |
| | | |
MarketAxess Holdings, Inc. | | | |
Marriott International, Inc., Class A | | | |
Martin Marietta Materials, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Microchip Technology, Inc. | | | |
Mid-America Apartment Communities, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
New Fortress Energy, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Norwegian Cruise Line Holdings Ltd. | | | |
| | | |
| | | |
Occidental Petroleum Corp. | | | |
| | | |
Omega Healthcare Investors, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Packaging Corp. of America | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pinnacle Financial Partners, Inc. | | | |
Schedule of Investments39
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
Planet Fitness, Inc., Class A | | | |
| | | |
| | | |
Procore Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Raymond James Financial, Inc. | | | |
| | | |
| | | |
| | | |
Robinhood Markets, Inc., Class A | | | |
| | | |
Ryan Specialty Holdings, Inc., Class A | | | |
Ryman Hospitality Properties, Inc. | | | |
| | | |
Selective Insurance Group, Inc. | | | |
| | | |
Shift4 Payments, Inc., Class A | | | |
| | | |
Simpson Manufacturing Co., Inc. | | | |
Skechers USA, Inc., Class A | | | |
| | | |
SolarEdge Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Summit Materials, Inc., Class A | | | |
| | | |
Super Micro Computer, Inc. | | | |
| | | |
Take-Two Interactive Software, Inc. | | | |
Teledyne Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
TKO Group Holdings, Inc., Class A | | | |
| | | |
| | | |
Trade Desk, Inc., Class A | | | |
Tradeweb Markets, Inc., Class A | | | |
| | | |
| | | |
| | | |
United Parcel Service, Inc., Class B | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Vertiv Holdings Co., Class A | | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
Walgreens Boots Alliance, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Wyndham Hotels & Resorts, Inc. | | | |
| | | |
Zebra Technologies Corp., Class A | | | |
Zimmer Biomet Holdings, Inc. | | | |
ZoomInfo Technologies, Inc., Class A | | | |
| | | |
| | | |
| | | |
NEXTDC Ltd., (Expires 05/09/24, Strike Price AUD 15.40) | | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — Barclays Bank PLC | | |
The following table represents the individual long positions and related values of the equity securities underlying the total return swap with Barclays Bank PLC as of period end, termination dates 11/11/24 — 05/27/25:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Magellan Financial Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Etablissements Franz Colruyt NV | | | |
| | | |
AbCellera Biologics, Inc. | | | |
| | | |
| | | |
First Majestic Silver Corp. | | | |
International Petroleum Corp. | | | |
Torex Gold Resources, Inc. | | | |
| | | |
402024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gulf Keystone Petroleum Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Canon Marketing Japan, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Fuyo General Lease Co. Ltd. | | | |
| | | |
| | | |
Japan Aviation Electronics Industry Ltd. | | | |
| | | |
Juroku Financial Group, Inc. | | | |
| | | |
Kobayashi Pharmaceutical Co., Ltd. | | | |
Koei Tecmo Holdings Co. Ltd. | | | |
| | | |
Makino Milling Machine Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
OBIC Business Consultants Co. Ltd. | | | |
Open House Group Co. Ltd. | | | |
| | | |
| | | |
| | | |
Sanyo Special Steel Co. Ltd. | | | |
Ship Healthcare Holdings, Inc. | | | |
Sumitomo Rubber Industries Ltd. | | | |
Takasago Thermal Engineering Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Fisher & Paykel Healthcare Corp. Ltd., Class C | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Atlantica Sustainable Infrastructure PLC | | | |
| | | |
| | | |
Lagercrantz Group AB, B Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Babcock International Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
1-800-Flowers.com, Inc., Class A | | | |
Accel Entertainment, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Amalgamated Financial Corp. | | | |
Ambac Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
Schedule of Investments41
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
Anywhere Real Estate, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Brightsphere Investment Group, Inc. | | | |
| | | |
Century Communities, Inc. | | | |
| | | |
| | | |
Clear Secure, Inc., Class A | | | |
Clearwater Analytics Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Construction Partners, Inc., Class A | | | |
Corcept Therapeutics, Inc. | | | |
| | | |
Credo Technology Group Holding Ltd. | | | |
| | | |
CSG Systems International, Inc. | | | |
| | | |
Delek U.S. Holdings, Inc. | | | |
| | | |
| | | |
Dime Community Bancshares, Inc. | | | |
| | | |
Donnelley Financial Solutions, Inc. | | | |
Dream Finders Homes, Inc., Class A | | | |
Driven Brands Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Federated Hermes, Inc., Class B | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gibraltar Industries, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Grocery Outlet Holding Corp. | | | |
| | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Healthcare Services Group, Inc. | | | |
Heidrick & Struggles International, Inc. | | | |
| | | |
Hims & Hers Health, Inc., Class A | | | |
Huron Consulting Group, Inc. | | | |
Hyster-Yale Materials Handling, Inc., Class A | | | |
| | | |
| | | |
| | | |
Integral Ad Science Holding Corp. | | | |
International Seaways, Inc. | | | |
Iridium Communications, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Kodiak Gas Services, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Methode Electronics, Inc. | | | |
| | | |
Midland States Bancorp, Inc. | | | |
Minerals Technologies, Inc. | | | |
| | | |
| | | |
| | | |
National Research Corp., Class A | | | |
| | | |
| | | |
| | | |
New Jersey Resources Corp. | | | |
NMI Holdings, Inc., Class A | | | |
| | | |
OceanFirst Financial Corp. | | | |
Oil States International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Perella Weinberg Partners, Class A | | | |
| | | |
Phibro Animal Health Corp., Class A | | | |
| | | |
422024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
Portillo’s, Inc., Class A | | | |
| | | |
| | | |
Prestige Consumer Healthcare, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
SEMrush Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
SMART Global Holdings, Inc. | | | |
| | | |
Sonic Automotive, Inc., Class A | | | |
| | | |
| | | |
Squarespace, Inc., Class A | | | |
Sterling Infrastructure, Inc. | | | |
| | | |
Supernus Pharmaceuticals, Inc. | | | |
| | | |
| | | |
| | | |
Under Armour, Inc., Class A | | | |
| | | |
Universal Insurance Holdings, Inc. | | | |
Universal Technical Institute, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Victory Capital Holdings, Inc., Class A | | | |
Virtu Financial, Inc., Class A | | | |
Vishay Precision Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Weave Communications, Inc. | | | |
| | | |
| | | |
| | | |
Zeta Global Holdings Corp., Class A | | | |
ZipRecruiter, Inc., Class A | | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Total Reference Entity — Long | | | |
| | | |
| | | |
| | | |
| | | |
APM Human Services International Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Corporate Travel Management Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Lifestyle Communities Ltd. | | | |
| | | |
Neuren Pharmaceuticals Ltd. | | | |
Nine Entertainment Co. Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Choice Properties Real Estate Investment Trust | | | |
| | | |
| | | |
| | | |
indie Semiconductor, Inc., Class A | | | |
| | | |
Establishment Labs Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments43
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
Enlight Renewable Energy Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Eurogroup Laminations SpA | | | |
| | | |
| | | |
| | | |
Advance Logistics Investment Corp. | | | |
Advance Residence Investment Corp. | | | |
| | | |
AEON Financial Service Co. Ltd. | | | |
Aichi Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Chikaranomoto Holdings Co. Ltd. | | | |
| | | |
Comforia Residential REIT, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Daikokutenbussan Co. Ltd. | | | |
| | | |
Daiwa Office Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
First Bank of Toyama Ltd. | | | |
| | | |
| | | |
Frontier Real Estate Investment Corp. | | | |
| | | |
Fuji Media Holdings, Inc. | | | |
| | | |
| | | |
Fukuyama Transporting Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
GungHo Online Entertainment, Inc. | | | |
| | | |
Hankyu Hanshin REIT, Inc. | | | |
Heiwa Real Estate REIT, Inc. | | | |
| | | |
| | | |
| | | |
Hokkaido Electric Power Co., Inc. | | | |
Hokkoku Financial Holdings, Inc. | | | |
Hoshino Resorts REIT, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Internet Initiative Japan, Inc. | | | |
Invincible Investment Corp. | | | |
| | | |
| | | |
Japan Elevator Service Holdings Co. Ltd. | | | |
Japan Logistics Fund, Inc. | | | |
Japan Prime Realty Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Kanto Denka Kogyo Co. Ltd. | | | |
| | | |
KeePer Technical Laboratory Co. Ltd. | | | |
| | | |
| | | |
Ki-Star Real Estate Co. Ltd. | | | |
| | | |
Komehyo Holdings Co. Ltd. | | | |
| | | |
Kosaido Holdings Co. Ltd. | | | |
Kotobuki Spirits Co. Ltd. | | | |
| | | |
| | | |
Kumiai Chemical Industry Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mars Group Holdings Corp. | | | |
| | | |
Matsui Securities Co. Ltd. | | | |
| | | |
| | | |
| | | |
Mitsubishi Estate Logistics REIT Investment Corp. | | | |
Mitsubishi Logistics Corp. | | | |
| | | |
442024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
Mitsui Fudosan Logistics Park, Inc. | | | |
Mitsui-Soko Holdings Co. Ltd. | | | |
| | | |
Mori Hills REIT Investment Corp. | | | |
Morinaga Milk Industry Co. Ltd. | | | |
| | | |
Nakayama Steel Works Ltd. | | | |
Namura Shipbuilding Co. Ltd. | | | |
Nankai Electric Railway Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Nippon Accommodations Fund, Inc. | | | |
| | | |
| | | |
Nippon Parking Development Co. Ltd., Class C | | | |
Nippon Pillar Packing Co. Ltd. | | | |
Nippon REIT Investment Corp. | | | |
Nippon Television Holdings, Inc. | | | |
Nippon Yakin Kogyo Co. Ltd. | | | |
Nishimatsuya Chain Co. Ltd. | | | |
Nishi-Nippon Railroad Co. Ltd. | | | |
| | | |
| | | |
Nomura Micro Science Co. Ltd. | | | |
| | | |
| | | |
NTT UD REIT Investment Corp. | | | |
| | | |
| | | |
| | | |
OSAKA Titanium Technologies Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Plus Alpha Consulting Co. Ltd. | | | |
Pola Orbis Holdings, Inc. | | | |
| | | |
Prestige International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ryoyo Ryosan Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sawai Group Holdings Co. Ltd. | | | |
SBI Sumishin Net Bank Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Shin Nippon Biomedical Laboratories Ltd. | | | |
| | | |
| | | |
Sinfonia Technology Co. Ltd. | | | |
SKY Perfect JSAT Holdings, Inc. | | | |
| | | |
SOSiLA Logistics REIT, Inc. | | | |
| | | |
Star Asia Investment Corp. | | | |
Sumitomo Heavy Industries Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Tokyo Steel Manufacturing Co. Ltd. | | | |
| | | |
| | | |
Torishima Pump Manufacturing Co. Ltd. | | | |
| | | |
| | | |
| | | |
Tri Chemical Laboratories, Inc. | | | |
Tsuburaya Fields Holdings, Inc. | | | |
| | | |
Universal Entertainment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yodogawa Steel Works Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments45
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
Greenvolt-Energias Renovaveis SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Surgical Science Sweden AB | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Global Ship Lease, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Amerant Bancorp, Inc., Class A | | | |
American Axle & Manufacturing Holdings, Inc. | | | |
American Coastal Insurance Corp., Class C | | | |
Apollo Commercial Real Estate Finance, Inc. | | | |
Applied Optoelectronics, Inc. | | | |
Ares Commercial Real Estate Corp. | | | |
Aris Water Solutions, Inc., Class A | | | |
ARMOUR Residential REIT, Inc. | | | |
Artesian Resources Corp., Class A | | | |
| | | |
| | | |
Atlanta Braves Holdings, Inc., Class C | | | |
Atlas Energy Solutions, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bloom Energy Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
California Water Service Group | | | |
| | | |
Camping World Holdings, Inc., Class A | | | |
Carpenter Technology Corp. | | | |
Cass Information Systems, Inc. | | | |
| | | |
| | | |
United States (continued) | | | |
Centrus Energy Corp., Class A | | | |
| | | |
Claros Mortgage Trust, Inc. | | | |
| | | |
Compass Minerals International, Inc. | | | |
| | | |
Crescent Energy Co., Class A | | | |
| | | |
| | | |
| | | |
Designer Brands, Inc., Class A | | | |
Diamond Offshore Drilling, Inc. | | | |
Distribution Solutions Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Edgewise Therapeutics, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
European Wax Center, Inc., Class A | | | |
Evolv Technologies Holdings, Inc., Class A | | | |
Excelerate Energy, Inc., Class A | | | |
| | | |
F&G Annuities & Life, Inc. | | | |
| | | |
First Bancorp/Southern Pines NC | | | |
| | | |
First Commonwealth Financial Corp. | | | |
First Community Bankshares, Inc. | | | |
| | | |
| | | |
| | | |
Frontier Group Holdings, Inc. | | | |
| | | |
German American Bancorp, Inc. | | | |
| | | |
| | | |
Global Medical REIT, Inc. | | | |
Grid Dynamics Holdings, Inc. | | | |
Hanover Insurance Group, Inc. | | | |
| | | |
Helix Energy Solutions Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
International Bancshares Corp. | | | |
iRhythm Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
462024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
Liberty Media Corp.-Liberty Live, Class C | | | |
| | | |
Lindblad Expeditions Holdings, Inc. | | | |
Lions Gate Entertainment Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
National Presto Industries, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Papa John’s International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Phathom Pharmaceuticals, Inc. | | | |
Phillips Edison & Co., Inc. | | | |
| | | |
Plymouth Industrial REIT, Inc. | | | |
| | | |
| | | |
| | | |
ProFrac Holding Corp., Class A | | | |
QuantumScape Corp., Class A | | | |
Ramaco Resources, Inc., Class A | | | |
| | | |
| | | |
Reliance Worldwide Corp. Ltd. | | | |
Retail Opportunity Investments Corp. | | | |
Rocket Lab USA, Inc., Class A | | | |
| | | |
Safety Insurance Group, Inc. | | | |
Seacoast Banking Corp. of Florida | | | |
Seneca Foods Corp., Class A | | | |
Sensient Technologies Corp. | | | |
Shenandoah Telecommunications Co. | | | |
| | | |
| | | |
SilverBow Resources, Inc. | | | |
Sitio Royalties Corp., Class A | | | |
Six Flags Entertainment Corp. | | | |
SkyWater Technology, Inc. | | | |
Southern Missouri Bancorp, Inc. | | | |
| | | |
United States (continued) | | | |
Standex International Corp. | | | |
| | | |
StepStone Group, Inc., Class A | | | |
| | | |
| | | |
| | | |
Tarsus Pharmaceuticals, Inc. | | | |
Telephone and Data Systems, Inc. | | | |
| | | |
Tootsie Roll Industries, Inc. | | | |
| | | |
| | | |
Treace Medical Concepts, Inc. | | | |
| | | |
U.S. Physical Therapy, Inc. | | | |
| | | |
| | | |
| | | |
United Community Banks, Inc. | | | |
United States Cellular Corp. | | | |
| | | |
| | | |
USANA Health Sciences, Inc. | | | |
| | | |
UWM Holdings Corp., Class A | | | |
Vishay Intertechnology, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
White Mountains Insurance Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
DocMorris AG, (Expires 05/06/24) | | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — Barclays Bank PLC | | |
The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with BNP Paribas SA as of period end, termination dates 03/21/25 — 12/15/25:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Flight Centre Travel Group Ltd., Class L | | | |
| | | |
| | | |
Schedule of Investments47
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
Woodside Energy Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Liberty Global Ltd., Class C | | | |
| | | |
| | | |
| | | |
| | | |
Algonquin Power & Utilities Corp. | | | |
| | | |
Brookfield Corp., Class A | | | |
Element Fleet Management Corp. | | | |
| | | |
| | | |
| | | |
| | | |
Gildan Activewear, Inc., Class A | | | |
| | | |
| | | |
Magna International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
West Fraser Timber Co. Ltd. | | | |
| | | |
| | | |
AP Moller - Maersk A/S, Class B | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bayerische Motoren Werke AG | | | |
| | | |
| | | |
HUGO BOSS AG, Ordinary Shares | | | |
K&S AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hang Lung Properties Ltd. | | | |
Hongkong Land Holdings Ltd. | | | |
Swire Pacific Ltd., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Infrastrutture Wireless Italiane SpA | | | |
| | | |
Mediobanca Banca di Credito Finanziario SpA | | | |
| | | |
| | | |
Recordati Industria Chimica e Farmaceutica SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Daiwa Securities Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
J Front Retailing Co. Ltd. | | | |
Japan Post Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mitsubishi Chemical Group Corp. | | | |
Mitsubishi Materials Corp. | | | |
Mitsubishi UFJ Financial Group, Inc. | | | |
| | | |
| | | |
Mizuho Financial Group, Inc. | | | |
| | | |
Nihon M&A Center Holdings, Inc. | | | |
| | | |
| | | |
Nisshin Seifun Group, Inc. | | | |
Nomura Research Institute Ltd. | | | |
| | | |
| | | |
482024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
Ono Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sega Sammy Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sumitomo Metal Mining Co. Ltd. | | | |
Sumitomo Mitsui Financial Group, Inc. | | | |
Suntory Beverage & Food Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Galaxy Entertainment Group Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gjensidige Forsikring ASA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Industria de Diseno Textil SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
ABB Ltd., Class N, Registered Shares | | | |
| | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | | |
Chocoladefabriken Lindt & Spruengli AG, Class N, Registered Shares | | | |
| | | |
Flughafen Zurich AG, Class N, Registered Shares | | | |
Logitech International SA, Class N, Registered Shares | | | |
Schindler Holding AG, Class N, Registered Shares | | | |
Sika AG, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Immunocore Holdings PLC, AR | | | |
| | | |
| | | |
| | | |
Land Securities Group PLC | | | |
London Stock Exchange Group PLC | | | |
Marks & Spencer Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Utilities Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Advanced Drainage Systems, Inc. | | | |
| | | |
| | | |
Agilent Technologies, Inc. | | | |
| | | |
| | | |
| | | |
Schedule of Investments49
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
Alnylam Pharmaceuticals, Inc. | | | |
| | | |
| | | |
Americold Realty Trust, Inc. | | | |
| | | |
| | | |
| | | |
Applied Industrial Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
BioMarin Pharmaceutical, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Builders FirstSource, Inc. | | | |
| | | |
| | | |
CACI International, Inc., Class A | | | |
| | | |
| | | |
| | | |
CH Robinson Worldwide, Inc. | | | |
| | | |
| | | |
| | | |
Citizens Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Elanco Animal Health, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
First American Financial Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Halozyme Therapeutics, Inc. | | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
| | | |
Huntington Ingalls Industries, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ionis Pharmaceuticals, Inc. | | | |
| | | |
Jack Henry & Associates, Inc. | | | |
James Hardie Industries PLC, CDI | | | |
| | | |
| | | |
| | | |
Keysight Technologies, Inc. | | | |
Lamar Advertising Co., Class A | | | |
Lattice Semiconductor Corp. | | | |
Liberty Media Corp.-Liberty SiriusXM | | | |
| | | |
| | | |
| | | |
Manhattan Associates, Inc. | | | |
| | | |
Marsh & McLennan Cos., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mettler-Toledo International, Inc. | | | |
| | | |
MGM Resorts International | | | |
| | | |
| | | |
| | | |
| | | |
Neurocrine Biosciences, Inc. | | | |
Nexstar Media Group, Inc., Class A | | | |
| | | |
| | | |
| | | |
O’Reilly Automotive, Inc. | | | |
| | | |
| | | |
| | | |
Paramount Global, Class B | | | |
| | | |
Penske Automotive Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pure Storage, Inc., Class A | | | |
| | | |
Reinsurance Group of America, Inc. | | | |
| | | |
| | | |
502024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Royal Caribbean Cruises Ltd. | | | |
Sarepta Therapeutics, Inc. | | | |
Seagate Technology Holdings PLC | | | |
Service Corp. International | | | |
| | | |
Silicon Laboratories, Inc. | | | |
| | | |
| | | |
Stanley Black & Decker, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Airlines Holdings, Inc. | | | |
United Therapeutics Corp. | | | |
| | | |
Veeva Systems, Inc., Class A | | | |
| | | |
| | | |
Verizon Communications, Inc. | | | |
| | | |
Westinghouse Air Brake Technologies Corp. | | | |
| | | |
| | | |
Zillow Group, Inc., Class C | | | |
| | | |
| | | |
Zoom Video Communications, Inc., Class A | | | |
| | | |
| | | |
| | | |
Bayerische Motoren Werke AG | | | |
Total Reference Entity — Long | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Commonwealth Bank of Australia | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Insurance Australia Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Northern Star Resources Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
RenaissanceRe Holdings Ltd. | | | |
| | | |
| | | |
Canadian Apartment Properties REIT | | | |
Fairfax Financial Holdings Ltd. | | | |
| | | |
| | | |
Peyto Exploration & Development Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Wilmar International Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bayer AG, Class N, Registered Shares | | | |
| | | |
Schedule of Investments51
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
Deutsche Boerse AG, Class N | | | |
Hannover Rueck SE, Class N | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Power Assets Holdings Ltd. | | | |
Sun Hung Kai Properties Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mobileye Global, Inc., Class A | | | |
| | | |
| | | |
Assicurazioni Generali SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Chugai Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
Iida Group Holdings Co. Ltd. | | | |
Japan Metropolitan Fund Invest | | | |
Japan Real Estate Investment Corp. | | | |
| | | |
| | | |
KDX Realty Investment Corp. | | | |
Keisei Electric Railway Co. Ltd. | | | |
| | | |
Kintetsu Group Holdings Co. Ltd., Class L | | | |
Kyushu Electric Power Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Mitsubishi Heavy Industries Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Nippon Building Fund, Inc. | | | |
Nippon Sanso Holdings Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Rohto Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
Seven & i Holdings Co. Ltd. | | | |
| | | |
| | | |
Shinko Electric Industries Co. Ltd. | | | |
| | | |
| | | |
Square Enix Holdings Co. Ltd. | | | |
| | | |
Sumitomo Forestry Co. Ltd. | | | |
Sumitomo Realty & Development Co. Ltd. | | | |
| | | |
| | | |
| | | |
Tohoku Electric Power Co., Inc. | | | |
Tokyo Electric Power Co Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Auckland International Airport Ltd. | | | |
Fisher & Paykel Healthcare Corp. Ltd., Class C | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Banco Comercial Portugues SA, R Shares | | | |
| | | |
| | | |
| | | |
Jardine Cycle & Carriage Ltd. | | | |
Oversea-Chinese Banking Corp. Ltd. | | | |
| | | |
Singapore Technologies Engineering Ltd. | | | |
| | | |
522024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Investment AB Latour, B Shares | | | |
| | | |
| | | |
Skandinaviska Enskilda Banken AB, Class A | | | |
Svenska Cellulosa AB SCA, Class B | | | |
Svenska Handelsbanken AB, A Shares | | | |
| | | |
| | | |
| | | |
Bachem Holding AG, Class N | | | |
Baloise Holding AG, Class N | | | |
Barry Callebaut AG, Class N, Registered Shares | | | |
Cie Financiere Richemont SA, Registered Shares | | | |
EMS-Chemie Holding AG, Registered Shares | | | |
Julius Baer Group Ltd., Class N | | | |
| | | |
Partners Group Holding AG | | | |
| | | |
| | | |
Swiss Life Holding AG, Class N, Registered Shares | | | |
Swisscom AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Berkeley Group Holdings PLC | | | |
| | | |
| | | |
InterContinental Hotels Group PLC | | | |
| | | |
Legal & General Group PLC | | | |
| | | |
| | | |
Reckitt Benckiser Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
10X Genomics, Inc., Class A | | | |
| | | |
| | | |
| | | |
Air Products and Chemicals, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ameriprise Financial, Inc. | | | |
| | | |
| | | |
Annaly Capital Management, Inc. | | | |
| | | |
| | | |
Apollo Global Management, Inc. | | | |
| | | |
Asbury Automotive Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
BJ’s Wholesale Club Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Capital One Financial Corp. | | | |
| | | |
| | | |
| | | |
| | | |
Chipotle Mexican Grill, Inc. | | | |
Choice Hotels International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Constellation Energy Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
DoubleVerify Holdings, Inc. | | | |
| | | |
| | | |
| | | |
Dun & Bradstreet Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Endeavor Group Holdings, Inc., Class A | | | |
| | | |
Schedule of Investments53
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
Erie Indemnity Co., Class A | | | |
Essex Property Trust, Inc. | | | |
Estee Lauder Cos., Inc., Class A | | | |
Extra Space Storage, Inc. | | | |
F&G Annuities & Life, Inc. | | | |
| | | |
First Citizens BancShares, Inc., Class A | | | |
| | | |
Freshworks, Inc., Class A | | | |
Gaming and Leisure Properties, Inc. | | | |
GE HealthCare Technologies, Inc. | | | |
| | | |
Graphic Packaging Holding Co. | | | |
| | | |
Healthcare Realty Trust, Inc. | | | |
| | | |
Houlihan Lokey, Inc., Class A | | | |
| | | |
| | | |
Hyatt Hotels Corp., Class A | | | |
| | | |
| | | |
Interactive Brokers Group, Inc., Class A | | | |
International Business Machines Corp. | | | |
International Flavors & Fragrances, Inc. | | | |
Intra-Cellular Therapies, Inc. | | | |
Johnson Controls International PLC | | | |
| | | |
| | | |
| | | |
Laboratory Corp. of America Holdings | | | |
| | | |
| | | |
Levi Strauss & Co., Class A | | | |
| | | |
MACOM Technology Solutions Holdings, Inc., Class H | | | |
MarketAxess Holdings, Inc. | | | |
Marriott International, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
National Storage Affiliates Trust | | | |
New Fortress Energy, Inc., Class A | | | |
| | | |
| | | |
Norwegian Cruise Line Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
PBF Energy, Inc., Class A | | | |
| | | |
Pinnacle Financial Partners, Inc. | | | |
Procore Technologies, Inc. | | | |
Prudential Financial, Inc. | | | |
| | | |
Public Service Enterprise Group, Inc. | | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
| | | |
Raymond James Financial, Inc. | | | |
| | | |
| | | |
Robinhood Markets, Inc., Class A | | | |
Ryman Hospitality Properties, Inc. | | | |
| | | |
Selective Insurance Group, Inc. | | | |
SentinelOne, Inc., Class A | | | |
| | | |
| | | |
Simon Property Group, Inc. | | | |
Simpson Manufacturing Co., Inc. | | | |
| | | |
SolarEdge Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Take-Two Interactive Software, Inc. | | | |
| | | |
Tempur Sealy International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
TKO Group Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Viking Therapeutics, Inc. | | | |
| | | |
| | | |
Warner Music Group Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Wyndham Hotels & Resorts, Inc. | | | |
| | | |
ZoomInfo Technologies, Inc., Class A | | | |
| | | |
542024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
NEXTDC Ltd., (Expires 05/09/24, Strike Price AUD 15.40) | | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — BNP Paribas SA | | |
The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with BNP Paribas SA as of period end, termination dates 03/17/25 — 11/17/25:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Growthpoint Properties Australia Ltd. | | | |
| | | |
McMillan Shakespeare Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Ventia Services Group Pty Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
AbCellera Biologics, Inc. | | | |
Ag Growth International, Inc. | | | |
| | | |
| | | |
Doman Building Materials Group Ltd. | | | |
Innergex Renewable Energy, Inc. | | | |
| | | |
| | | |
North American Construction Group Ltd. | | | |
| | | |
| | | |
| | | |
Transcontinental, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Deutsche Pfandbriefbank AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Internet AG, Class N, Registered Shares | | | |
| | | |
| | | |
HK Electric Investments & HK Electric Investments Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | | |
Create Restaurants Holdings, Inc. | | | |
Create SD Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Doutor Nichires Holdings Co. Ltd. | | | |
| | | |
Schedule of Investments55
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
FULLCAST Holdings Co. Ltd. | | | |
Furukawa Electric Co. Ltd. | | | |
| | | |
| | | |
| | | |
Heiwa Real Estate Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Inaba Denki Sangyo Co. Ltd. | | | |
| | | |
| | | |
| | | |
Kissei Pharmaceutical Co. Ltd. | | | |
| | | |
Kyoritsu Maintenance Co. Ltd. | | | |
| | | |
| | | |
Mebuki Financial Group, Inc. | | | |
MEITEC Group Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Nippon Light Metal Holdings Co. Ltd. | | | |
Nishi-Nippon Financial Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sanki Engineering Co. Ltd. | | | |
| | | |
Seikitokyu Kogyo Co. Ltd. | | | |
| | | |
| | | |
Shibaura Machine Co. Ltd. | | | |
Sohgo Security Services Co. Ltd. | | | |
Sumitomo Bakelite Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Tokai Tokyo Financial Holdings, Inc. | | | |
Towa Pharmaceutical Co. Ltd. | | | |
Toyo Seikan Group Holdings Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yokogawa Bridge Holdings Corp. | | | |
| | | |
| | | |
| | | |
Eurocommercial Properties NV | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Suntec Real Estate Investment Trust | | | |
| | | |
Atlantica Sustainable Infrastructure PLC | | | |
| | | |
Inmobiliaria Colonial Socimi SA | | | |
| | | |
Merlin Properties Socimi SA | | | |
| | | |
| | | |
dormakaba Holding AG, Class N | | | |
EFG International AG, Class N | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Jupiter Fund Management PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
1-800-Flowers.com, Inc., Class A | | | |
Accel Entertainment, Inc. | | | |
| | | |
| | | |
562024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
| | | |
ANI Pharmaceuticals, Inc. | | | |
Anywhere Real Estate, Inc. | | | |
| | | |
| | | |
Atea Pharmaceuticals, Inc. | | | |
| | | |
| | | |
Capitol Federal Financial, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Corcept Therapeutics, Inc. | | | |
| | | |
| | | |
| | | |
Dave & Buster’s Entertainment, Inc. | | | |
Delek U.S. Holdings, Inc. | | | |
| | | |
Dime Community Bancshares, Inc. | | | |
| | | |
| | | |
El Pollo Loco Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Healthcare Services Group, Inc. | | | |
Heidrick & Struggles International, Inc. | | | |
Hims & Hers Health, Inc., Class A | | | |
Huron Consulting Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
John B Sanfilippo & Son, Inc. | | | |
Kennedy-Wilson Holdings, Inc. | | | |
| | | |
| | | |
| | | |
Methode Electronics, Inc. | | | |
Midland States Bancorp, Inc. | | | |
| | | |
| | | |
National Health Investors, Inc. | | | |
| | | |
United States (continued) | | | |
NMI Holdings, Inc., Class A | | | |
| | | |
OceanFirst Financial Corp. | | | |
| | | |
| | | |
Perella Weinberg Partners, Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
REX American Resources Corp. | | | |
| | | |
| | | |
SEMrush Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Southside Bancshares, Inc. | | | |
Supernus Pharmaceuticals, Inc. | | | |
Theravance Biopharma, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Total Reference Entity — Long | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bendigo & Adelaide Bank Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments57
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
Fidelis Insurance Holdings Ltd., Class L | | | |
| | | |
Allied Properties Real Estate Investment Trust | | | |
Ballard Power Systems, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Martinrea International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Triple Flag Precious Metals Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Establishment Labs Holdings, Inc. | | | |
| | | |
| | | |
| | | |
NTG Nordic Transport Group A/S, Class A | | | |
Ringkjoebing Landbobank A/S | | | |
| | | |
Scandinavian Tobacco Group A/S, Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schott Pharma AG & Co. KGaA | | | |
| | | |
| | | |
Thyssenkrupp Nucera AG & Co. KGaa | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Eurogroup Laminations SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Advance Residence Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
Chikaranomoto Holdings Co. Ltd. | | | |
Chubu Steel Plate Co. Ltd. | | | |
| | | |
| | | |
| | | |
Daiwa Office Investment Corp. | | | |
| | | |
First Bank of Toyama Ltd. | | | |
Frontier Real Estate Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Kanto Denka Kogyo Co. Ltd. | | | |
| | | |
| | | |
Komehyo Holdings Co. Ltd. | | | |
Kosaido Holdings Co. Ltd. | | | |
Kotobuki Spirits Co. Ltd. | | | |
| | | |
| | | |
| | | |
Mitsui Fudosan Logistics Park, Inc. | | | |
Mitsui-Soko Holdings Co. Ltd. | | | |
| | | |
Namura Shipbuilding Co. Ltd. | | | |
| | | |
| | | |
Nippon Accommodations Fund, Inc. | | | |
| | | |
Nippon Pillar Packing Co. Ltd. | | | |
Nomura Micro Science Co. Ltd. | | | |
Prestige International, Inc. | | | |
| | | |
| | | |
| | | |
Ryoyo Ryosan Holdings, Inc. | | | |
| | | |
| | | |
SBI Sumishin Net Bank Ltd. | | | |
Septeni Holdings Co. Ltd. | | | |
Shin Nippon Biomedical Laboratories Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
582024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yodogawa Steel Works Ltd. | | | |
| | | |
| | | |
| | | |
AMG Critical Materials NV | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Greenvolt-Energias Renovaveis SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hufvudstaden AB, A Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Vitec Software Group AB, B Shares | | | |
| | | |
| | | |
Allreal Holding AG, Class N, Registered Shares | | | |
Bossard Holding AG, Registered Shares | | | |
| | | |
| | | |
Bucher Industries AG, Registered Shares | | | |
| | | |
Comet Holding AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
Huber Suhner AG, Class N, Registered Shares | | | |
Interroll Holding AG, Class N, Registered Shares | | | |
| | | |
Mobimo Holding AG, Registered Shares | | | |
OC Oerlikon Corp. AG, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Auction Technology Group PLC | | | |
| | | |
Crest Nicholson Holdings PLC | | | |
| | | |
Oxford Nanopore Technologies PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Apollo Commercial Real Estate Finance, Inc. | | | |
Applied Optoelectronics, Inc. | | | |
Ares Commercial Real Estate Corp. | | | |
| | | |
ARMOUR Residential REIT, Inc. | | | |
Artesian Resources Corp., Class A | | | |
Atlas Energy Solutions, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bloom Energy Corp., Class A | | | |
| | | |
Boston Omaha Corp., Class A | | | |
Bowman Consulting Group Ltd. | | | |
| | | |
BrightView Holdings, Inc. | | | |
| | | |
| | | |
Cass Information Systems, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments59
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
Community Bank System, Inc. | | | |
| | | |
| | | |
Crescent Energy Co., Class A | | | |
| | | |
| | | |
Designer Brands, Inc., Class A | | | |
DiamondRock Hospitality Co. | | | |
Distribution Solutions Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Enliven Therapeutics, Inc. | | | |
| | | |
| | | |
Equity Bancshares, Inc., Class A | | | |
Evolv Technologies Holdings, Inc., Class A | | | |
Excelerate Energy, Inc., Class A | | | |
F&G Annuities & Life, Inc. | | | |
Farmers National Banc Corp. | | | |
| | | |
| | | |
First Community Bankshares, Inc. | | | |
| | | |
Fluence Energy, Inc., Class A | | | |
| | | |
Global Medical REIT, Inc. | | | |
Great Southern Bancorp, Inc. | | | |
Grid Dynamics Holdings, Inc. | | | |
| | | |
| | | |
Hertz Global Holdings, Inc. | | | |
| | | |
| | | |
International Bancshares Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Lindblad Expeditions Holdings, Inc. | | | |
| | | |
Madison Square Garden Sports Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
MP Materials Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Nu Skin Enterprises, Inc., Class A | | | |
| | | |
United States (continued) | | | |
| | | |
OneWater Marine, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Phathom Pharmaceuticals, Inc. | | | |
| | | |
| | | |
| | | |
QuantumScape Corp., Class A | | | |
| | | |
Reliance Worldwide Corp. Ltd. | | | |
Rocket Lab USA, Inc., Class A | | | |
| | | |
| | | |
Shenandoah Telecommunications Co. | | | |
Six Flags Entertainment Corp. | | | |
SkyWater Technology, Inc. | | | |
Spirit AeroSystems Holdings, Inc., Class A | | | |
| | | |
Standard Motor Products, Inc. | | | |
| | | |
StepStone Group, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United States Cellular Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
White Mountains Insurance Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — BNP Paribas SA | | |
The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination dates 06/17/24 — 08/19/26:
602024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
Flight Centre Travel Group Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Groupe Bruxelles Lambert NV | | | |
Liberty Global Ltd., Class C | | | |
| | | |
| | | |
| | | |
| | | |
Wheaton Precious Metals Corp. | | | |
| | | |
Algonquin Power & Utilities Corp. | | | |
| | | |
Boyd Group Services, Inc. | | | |
CCL Industries, Inc., Class B | | | |
Constellation Software, Inc. | | | |
Element Fleet Management Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gildan Activewear, Inc., Class A | | | |
| | | |
| | | |
Magna International, Inc. | | | |
| | | |
| | | |
| | | |
Restaurant Brands International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
West Fraser Timber Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gaztransport Et Technigaz SA | | | |
LVMH Moet Hennessy Louis Vuitton SE | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bayerische Motoren Werke AG | | | |
| | | |
| | | |
| | | |
| | | |
HUGO BOSS AG, Ordinary Shares | | | |
K&S AG, Class N, Registered Shares | | | |
| | | |
| | | |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hang Lung Properties Ltd. | | | |
Hongkong Land Holdings Ltd. | | | |
| | | |
Swire Pacific Ltd., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Infrastrutture Wireless Italiane SpA | | | |
| | | |
Mediobanca Banca di Credito Finanziario SpA | | | |
| | | |
| | | |
Recordati Industria Chimica e Farmaceutica SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments61
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
Chubu Electric Power Co., Inc. | | | |
| | | |
| | | |
| | | |
| | | |
J Front Retailing Co. Ltd. | | | |
Japan Post Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mitsubishi Chemical Group Corp. | | | |
Mitsubishi Electric Corp. | | | |
| | | |
Mizuho Financial Group, Inc. | | | |
Nihon M&A Center Holdings, Inc. | | | |
| | | |
| | | |
Nippon Express Holdings, Inc. | | | |
| | | |
Nisshin Seifun Group, Inc. | | | |
| | | |
Nomura Research Institute Ltd. | | | |
| | | |
| | | |
Ono Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Renesas Electronics Corp. | | | |
| | | |
| | | |
Santen Pharmaceutical Co. Ltd. | | | |
Sega Sammy Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Shin-Etsu Chemical Co. Ltd. | | | |
| | | |
| | | |
Sumitomo Mitsui Financial Group, Inc. | | | |
Sumitomo Mitsui Trust Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Galaxy Entertainment Group Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Wolters Kluwer NV, Class C | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gjensidige Forsikring ASA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Liberty Latin America Ltd., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Industria de Diseno Textil SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
ABB Ltd., Class N, Registered Shares | | | |
Chocoladefabriken Lindt & Spruengli AG, Participation Certificates | | | |
Chocoladefabriken Lindt & Spruengli AG, Class N, Registered Shares | | | |
Flughafen Zurich AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
622024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Land Securities Group PLC | | | |
Marks & Spencer Group PLC | | | |
Moneysupermarket.com Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Advanced Drainage Systems, Inc. | | | |
| | | |
| | | |
Agilent Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Alnylam Pharmaceuticals, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Builders FirstSource, Inc. | | | |
| | | |
| | | |
CACI International, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
CBRE Group, Inc., Class A | | | |
CH Robinson Worldwide, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Citizens Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Consolidated Edison, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Darling Ingredients, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
First American Financial Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Halozyme Therapeutics, Inc. | | | |
| | | |
Hewlett Packard Enterprise Co. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ionis Pharmaceuticals, Inc. | | | |
| | | |
Jack Henry & Associates, Inc. | | | |
James Hardie Industries PLC, CDI | | | |
| | | |
| | | |
| | | |
Keysight Technologies, Inc. | | | |
Lamar Advertising Co., Class A | | | |
Lattice Semiconductor Corp. | | | |
Liberty Media Corp.-Liberty SiriusXM | | | |
| | | |
| | | |
Manhattan Associates, Inc. | | | |
Schedule of Investments63
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
Marsh & McLennan Cos., Inc. | | | |
| | | |
Mastercard, Inc., Class A | | | |
Mettler-Toledo International, Inc. | | | |
MGM Resorts International | | | |
| | | |
| | | |
| | | |
| | | |
Nestle SA, Class N, Registered Shares | | | |
| | | |
Neurocrine Biosciences, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Paramount Global, Class B | | | |
Penske Automotive Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Pure Storage, Inc., Class A | | | |
| | | |
Reinsurance Group of America, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sarepta Therapeutics, Inc. | | | |
| | | |
Service Corp. International | | | |
| | | |
| | | |
Silicon Laboratories, Inc. | | | |
| | | |
SS&C Technologies Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Therapeutics Corp. | | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Westinghouse Air Brake Technologies Corp. | | | |
| | | |
| | | |
| | | |
Zillow Group, Inc., Class C | | | |
| | | |
| | | |
| | | |
Zurn Elkay Water Solutions Corp., Class C | | | |
| | | |
| | | |
| | | |
Bayerische Motoren Werke AG | | | |
| | | |
| | | |
Total Reference Entity — Long | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Woodside Energy Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
RenaissanceRe Holdings Ltd. | | | |
Cameroon, United Republic Of | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Canadian Apartment Properties REIT | | | |
Canadian National Railway Co. | | | |
Canadian Pacific Kansas City Ltd. | | | |
Fairfax Financial Holdings Ltd. | | | |
Finning International, Inc. | | | |
| | | |
| | | |
642024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
Lightspeed Commerce, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Osisko Gold Royalties Ltd. | | | |
Pan American Silver Corp. | | | |
| | | |
| | | |
| | | |
RioCan Real Estate Investment Trust | | | |
Rogers Communications, Inc., Class B | | | |
| | | |
| | | |
| | | |
Teck Resources Ltd., Class B | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Wilmar International Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bayer AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
Deutsche Post AG, Class N | | | |
Hannover Rueck SE, Class N | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
CK Infrastructure Holdings Ltd. | | | |
| | | |
Henderson Land Development Co. Ltd. | | | |
HKT Trust & HKT Ltd., Class SS | | | |
Hong Kong & China Gas Co. Ltd. | | | |
| | | |
Power Assets Holdings Ltd. | | | |
| | | |
Techtronic Industries Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Israel Discount Bank Ltd., Class A | | | |
Mizrahi Tefahot Bank Ltd. | | | |
Mobileye Global, Inc., Class A | | | |
| | | |
| | | |
Assicurazioni Generali SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Chugai Pharmaceutical Co. Ltd. | | | |
| | | |
Harmonic Drive Systems, Inc. | | | |
| | | |
Iida Group Holdings Co. Ltd. | | | |
Japan Metropolitan Fund Invest | | | |
Japan Petroleum Exploration Co. Ltd. | | | |
Japan Real Estate Investment Corp. | | | |
Keisei Electric Railway Co. Ltd. | | | |
| | | |
Kintetsu Group Holdings Co. Ltd., Class L | | | |
Kyushu Electric Power Co., Inc. | | | |
| | | |
M&A Research Institute Holdings, Inc. | | | |
| | | |
| | | |
| | | |
Schedule of Investments65
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
Nippon Building Fund, Inc. | | | |
Nippon Sanso Holdings Corp. | | | |
| | | |
Rohto Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
Seven & i Holdings Co. Ltd. | | | |
| | | |
| | | |
Shizuoka Financial Group, Inc. | | | |
| | | |
Square Enix Holdings Co. Ltd. | | | |
| | | |
| | | |
Tokyo Electric Power Co Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Banco Comercial Portugues SA, R Shares | | | |
| | | |
| | | |
| | | |
| | | |
CapitaLand Investment Ltd. | | | |
| | | |
Jardine Cycle & Carriage Ltd. | | | |
| | | |
Mapletree Logistics Trust | | | |
Oversea-Chinese Banking Corp. Ltd. | | | |
| | | |
Singapore Technologies Engineering Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bachem Holding AG, Class N | | | |
EMS-Chemie Holding AG, Registered Shares | | | |
| | | |
| | | |
| | | |
SGS SA, Registered Shares | | | |
| | | |
Straumann Holding AG, Registered Shares | | | |
| | | |
Swiss Life Holding AG, Class N, Registered Shares | | | |
Swisscom AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Associated British Foods PLC | | | |
| | | |
| | | |
Ck Hutchison Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Reckitt Benckiser Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
10X Genomics, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
American Electric Power Co., Inc. | | | |
| | | |
Annaly Capital Management, Inc. | | | |
| | | |
Apollo Global Management, Inc. | | | |
| | | |
Armstrong World Industries, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Berkshire Hathaway, Inc., Class B | | | |
662024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
BJ’s Wholesale Club Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Brixmor Property Group, Inc. | | | |
| | | |
| | | |
Chipotle Mexican Grill, Inc. | | | |
| | | |
| | | |
| | | |
Coca-Cola Consolidated, Inc. | | | |
| | | |
| | | |
Constellation Energy Corp. | | | |
| | | |
Core & Main, Inc., Class A | | | |
Corebridge Financial, Inc. | | | |
| | | |
| | | |
| | | |
Cullen/Frost Bankers, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Dun & Bradstreet Holdings, Inc. | | | |
| | | |
Dutch Bros, Inc., Class A | | | |
| | | |
| | | |
| | | |
Erie Indemnity Co., Class A | | | |
Extra Space Storage, Inc. | | | |
| | | |
First Citizens BancShares, Inc., Class A | | | |
Gaming and Leisure Properties, Inc. | | | |
GE HealthCare Technologies, Inc. | | | |
Graphic Packaging Holding Co. | | | |
| | | |
| | | |
Healthcare Realty Trust, Inc. | | | |
| | | |
| | | |
Hilton Grand Vacations, Inc. | | | |
| | | |
Hyatt Hotels Corp., Class A | | | |
| | | |
Interactive Brokers Group, Inc., Class A | | | |
International Flavors & Fragrances, Inc. | | | |
Intra-Cellular Therapies, Inc. | | | |
| | | |
JB Hunt Transport Services, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
Laboratory Corp. of America Holdings | | | |
| | | |
Levi Strauss & Co., Class A | | | |
Liberty Broadband Corp., Class C | | | |
| | | |
Lithia Motors, Inc., Class A | | | |
| | | |
MACOM Technology Solutions Holdings, Inc., Class H | | | |
MarketAxess Holdings, Inc. | | | |
Marriott International, Inc., Class A | | | |
| | | |
| | | |
MDU Resources Group, Inc. | | | |
Meta Platforms, Inc., Class A | | | |
| | | |
| | | |
National Storage Affiliates Trust | | | |
| | | |
New Fortress Energy, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Omega Healthcare Investors, Inc. | | | |
| | | |
| | | |
| | | |
Palantir Technologies, Inc., Class A | | | |
| | | |
| | | |
| | | |
Pinnacle Financial Partners, Inc. | | | |
| | | |
Procore Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Raymond James Financial, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ryman Hospitality Properties, Inc. | | | |
| | | |
Selective Insurance Group, Inc. | | | |
SentinelOne, Inc., Class A | | | |
| | | |
| | | |
| | | |
SolarEdge Technologies, Inc. | | | |
| | | |
| | | |
Schedule of Investments67
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
Sprouts Farmers Market, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Take-Two Interactive Software, Inc. | | | |
Teledyne Technologies, Inc. | | | |
| | | |
| | | |
TKO Group Holdings, Inc., Class A | | | |
| | | |
Tradeweb Markets, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Warner Music Group Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Wyndham Hotels & Resorts, Inc. | | | |
| | | |
Zebra Technologies Corp., Class A | | | |
ZoomInfo Technologies, Inc., Class A | | | |
| | | |
| | | |
| | | |
NEXTDC Ltd., (Expires 05/09/24, Strike Price AUD 15.40) | | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — Goldman Sachs Bank USA | | |
The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Goldman Sachs Bank USA as of period end, termination dates 06/10/24 — 08/19/26:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Charter Hall Social Infrastructure REIT | | | |
| | | |
| | | |
| | | |
Growthpoint Properties Australia Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Pinnacle Investment Management Group Ltd. | | | |
| | | |
| | | |
Silver Lake Resources Ltd. | | | |
| | | |
Ventia Services Group Pty Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Raiffeisen Bank International AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hamilton Insurance Group Ltd., Class B | | | |
| | | |
AbCellera Biologics, Inc. | | | |
| | | |
| | | |
Ag Growth International, Inc. | | | |
Artis Real Estate Investment Trust | | | |
| | | |
| | | |
Doman Building Materials Group Ltd. | | | |
Fortuna Silver Mines, Inc. | | | |
Innergex Renewable Energy, Inc. | | | |
| | | |
Major Drilling Group International, Inc. | | | |
| | | |
North American Construction Group Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Transcontinental, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Etablissements Maurel et Prom SA | | | |
682024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
Television Francaise 1 SA | | | |
| | | |
| | | |
Bank of Georgia Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Deutsche Pfandbriefbank AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Internet AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Alony Hetz Properties & Investments Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Banca Popolare di Sondrio SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | | |
| | | |
Create Restaurants Holdings, Inc. | | | |
Create SD Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
Doutor Nichires Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Financial Partners Group Co. Ltd. | | | |
| | | |
FULLCAST Holdings Co. Ltd. | | | |
Furukawa Electric Co. Ltd. | | | |
Futaba Industrial Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Heiwa Real Estate Co. Ltd. | | | |
| | | |
| | | |
| | | |
Ichigo Office REIT Investment Corp. | | | |
Inaba Denki Sangyo Co. Ltd. | | | |
| | | |
Ishihara Sangyo Kaisha Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Kissei Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
Kyoritsu Maintenance Co. Ltd. | | | |
| | | |
Megmilk Snow Brand Co. Ltd. | | | |
| | | |
MEITEC Group Holdings, Inc. | | | |
| | | |
| | | |
Mitsubishi Shokuhin Co. Ltd. | | | |
Mitsui Mining & Smelting Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Nippon Light Metal Holdings Co. Ltd. | | | |
Nippon Paper Industries Co. Ltd., Class A | | | |
Nisshin Oillio Group Ltd. | | | |
| | | |
| | | |
| | | |
Schedule of Investments69
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Oki Electric Industry Co. Ltd. | | | |
| | | |
| | | |
Pacific Industrial Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sanki Engineering Co. Ltd. | | | |
| | | |
| | | |
Shibaura Machine Co. Ltd. | | | |
Sohgo Security Services Co. Ltd. | | | |
| | | |
Sumitomo Mitsui Construction Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Towa Pharmaceutical Co. Ltd. | | | |
Toyo Seikan Group Holdings Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yokogawa Bridge Holdings Corp. | | | |
| | | |
| | | |
| | | |
| | | |
Eurocommercial Properties NV | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Frasers Logistics & Commercial Trust | | | |
| | | |
| | | |
| | | |
| | | |
Atlantica Sustainable Infrastructure PLC | | | |
Construcciones y Auxiliar de Ferrocarriles SA | | | |
| | | |
Merlin Properties Socimi SA | | | |
| | | |
| | | |
| | | |
Corem Property Group AB, B Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Implenia AG, Registered Shares | | | |
Inficon Holding AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Jupiter Fund Management PLC | | | |
| | | |
| | | |
| | | |
| | | |
Moneysupermarket.com Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
Paragon Banking Group PLC | | | |
702024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United Kingdom (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
1-800-Flowers.com, Inc., Class A | | | |
Accel Entertainment, Inc. | | | |
| | | |
| | | |
| | | |
Albany International Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Anywhere Real Estate, Inc. | | | |
| | | |
| | | |
| | | |
Atea Pharmaceuticals, Inc. | | | |
| | | |
| | | |
| | | |
Benchmark Electronics, Inc. | | | |
| | | |
Brightsphere Investment Group, Inc. | | | |
Brookdale Senior Living, Inc. | | | |
| | | |
| | | |
Century Communities, Inc. | | | |
| | | |
| | | |
| | | |
Corcept Therapeutics, Inc. | | | |
CSG Systems International, Inc. | | | |
| | | |
Delek U.S. Holdings, Inc. | | | |
| | | |
| | | |
Dime Community Bancshares, Inc. | | | |
| | | |
Donnelley Financial Solutions, Inc. | | | |
| | | |
| | | |
| | | |
El Pollo Loco Holdings, Inc. | | | |
| | | |
Enova International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
First Interstate BancSystem, Inc., Class A | | | |
Fiverr International Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
Gibraltar Industries, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Grocery Outlet Holding Corp. | | | |
| | | |
| | | |
| | | |
Harmony Biosciences Holdings, Inc. | | | |
Hawaiian Electric Industries, Inc. | | | |
| | | |
Healthcare Services Group, Inc. | | | |
| | | |
Heidrick & Struggles International, Inc. | | | |
Hims & Hers Health, Inc., Class A | | | |
| | | |
Howard Hughes Holdings, Inc. | | | |
| | | |
| | | |
Independent Bank Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Janus International Group, Inc. | | | |
| | | |
| | | |
| | | |
Laureate Education, Inc., Class A | | | |
| | | |
Liberty Energy, Inc., Class A | | | |
LifeStance Health Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Methode Electronics, Inc. | | | |
| | | |
Midland States Bancorp, Inc. | | | |
| | | |
Montrose Environmental Group, Inc. | | | |
| | | |
| | | |
National Vision Holdings, Inc. | | | |
| | | |
| | | |
NexPoint Residential Trust, Inc. | | | |
NMI Holdings, Inc., Class A | | | |
| | | |
OceanFirst Financial Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Perella Weinberg Partners, Class A | | | |
| | | |
Schedule of Investments71
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Prestige Consumer Healthcare, Inc. | | | |
| | | |
| | | |
| | | |
Radius Recycling, Inc., Class A | | | |
| | | |
REX American Resources Corp. | | | |
| | | |
| | | |
Sandy Spring Bancorp, Inc. | | | |
SEMrush Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Southside Bancshares, Inc. | | | |
| | | |
Spectrum Brands Holdings, Inc. | | | |
| | | |
Summit Hotel Properties, Inc. | | | |
Supernus Pharmaceuticals, Inc. | | | |
| | | |
| | | |
Turning Point Brands, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Vishay Precision Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Total Reference Entity — Long | | | |
| | | |
| | | |
| | | |
| | | |
APM Human Services International Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Coronado Global Resources, Inc., CDI | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Neuren Pharmaceuticals Ltd. | | | |
Nine Entertainment Co. Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Brookfield Business Corp., Class A | | | |
Cogeco Communications, Inc. | | | |
Converge Technology Solutions Corp. | | | |
CT Real Estate Investment Trust | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Martinrea International, Inc. | | | |
Minto Apartment Real Estate Investment Trust | | | |
Primaris Real Estate Investment Trust | | | |
| | | |
| | | |
| | | |
SmartCentres Real Estate Investment Trust | | | |
| | | |
| | | |
| | | |
StorageVault Canada, Inc. | | | |
Triple Flag Precious Metals Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
722024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
NTG Nordic Transport Group A/S, Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Casino Guichard Perrachon SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
SUESS MicroTec SE, Class N | | | |
Thyssenkrupp Nucera AG & Co. KGaa | | | |
| | | |
| | | |
| | | |
| | | |
Golden Agri-Resources Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Eurogroup Laminations SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Advance Logistics Investment Corp. | | | |
Advance Residence Investment Corp. | | | |
Aichi Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Chikaranomoto Holdings Co. Ltd. | | | |
Comforia Residential REIT, Inc. | | | |
| | | |
| | | |
| | | |
Daikokutenbussan Co. Ltd. | | | |
Daiwa Office Investment Corp. | | | |
| | | |
| | | |
| | | |
First Bank of Toyama Ltd. | | | |
| | | |
| | | |
Fukuyama Transporting Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
GMO Financial Holdings, Inc. | | | |
| | | |
Hankyu Hanshin REIT, Inc. | | | |
Heiwa Real Estate REIT, Inc. | | | |
| | | |
| | | |
Hokuhoku Financial Group, Inc. | | | |
Hoshino Resorts REIT, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Japan Prime Realty Investment Corp. | | | |
| | | |
| | | |
Kanto Denka Kogyo Co. Ltd. | | | |
KeePer Technical Laboratory Co. Ltd. | | | |
| | | |
| | | |
Ki-Star Real Estate Co. Ltd. | | | |
| | | |
| | | |
Komehyo Holdings Co. Ltd. | | | |
| | | |
Kosaido Holdings Co. Ltd. | | | |
Schedule of Investments73
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
Kumiai Chemical Industry Co. Ltd. | | | |
| | | |
| | | |
| | | |
Mitsubishi Estate Logistics REIT Investment Corp. | | | |
| | | |
| | | |
Mitsui Fudosan Logistics Park, Inc. | | | |
Mitsui-Soko Holdings Co. Ltd. | | | |
Morinaga Milk Industry Co. Ltd. | | | |
| | | |
Nankai Electric Railway Co. Ltd. | | | |
| | | |
| | | |
| | | |
Nippon Accommodations Fund, Inc. | | | |
| | | |
| | | |
Nippon Pillar Packing Co. Ltd. | | | |
Nippon Yakin Kogyo Co. Ltd. | | | |
Nishimatsuya Chain Co. Ltd. | | | |
| | | |
Nomura Micro Science Co. Ltd. | | | |
| | | |
| | | |
| | | |
OSAKA Titanium Technologies Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Ryoyo Ryosan Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Shin Nippon Biomedical Laboratories Ltd. | | | |
| | | |
SKY Perfect JSAT Holdings, Inc. | | | |
SOSiLA Logistics REIT, Inc. | | | |
| | | |
Star Asia Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Tokyo Steel Manufacturing Co. Ltd. | | | |
| | | |
| | | |
| | | |
Tri Chemical Laboratories, Inc. | | | |
| | | |
Tsuburaya Fields Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yodogawa Steel Works Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
AMG Critical Materials NV | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
TELUS International CDA, Inc. | | | |
| | | |
Greenvolt-Energias Renovaveis SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Electrolux Professional AB, Class B | | | |
| | | |
Hufvudstaden AB, A Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Surgical Science Sweden AB | | | |
| | | |
Vitec Software Group AB, B Shares | | | |
| | | |
| | | |
| | | |
Allreal Holding AG, Class N, Registered Shares | | | |
Autoneum Holding AG, Class N | | | |
Burckhardt Compression Holding AG | | | |
742024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
Emmi AG, Class N, Registered Shares | | | |
Forbo Holding AG, Registered Shares | | | |
| | | |
Interroll Holding AG, Class N, Registered Shares | | | |
Komax Holding AG, Class N, Registered Shares | | | |
| | | |
Mobilezone Holding AG, Registered Shares | | | |
Mobimo Holding AG, Registered Shares | | | |
| | | |
Siegfried Holding AG, Class N, Registered Shares | | | |
| | | |
St Galler Kantonalbank AG, Class N, Registered Shares | | | |
Vontobel Holding AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
Aston Martin Lagonda Global Holdings PLC | | | |
Auction Technology Group PLC | | | |
| | | |
Crest Nicholson Holdings PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Oxford Nanopore Technologies PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
UK Commercial Property REIT Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
Amerant Bancorp, Inc., Class A | | | |
| | | |
Apollo Commercial Real Estate Finance, Inc. | | | |
Applied Optoelectronics, Inc. | | | |
Ares Commercial Real Estate Corp. | | | |
| | | |
ARMOUR Residential REIT, Inc. | | | |
Artesian Resources Corp., Class A | | | |
| | | |
Atlas Energy Solutions, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Boston Omaha Corp., Class A | | | |
| | | |
| | | |
California Water Service Group | | | |
Camping World Holdings, Inc., Class A | | | |
Cass Information Systems, Inc. | | | |
| | | |
Centrus Energy Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Diamond Offshore Drilling, Inc. | | | |
| | | |
Distribution Solutions Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Encore Capital Group, Inc. | | | |
| | | |
| | | |
| | | |
Evolv Technologies Holdings, Inc., Class A | | | |
Excelerate Energy, Inc., Class A | | | |
| | | |
F&G Annuities & Life, Inc. | | | |
Farmers National Banc Corp. | | | |
| | | |
First Bancorp/Southern Pines NC | | | |
| | | |
First Commonwealth Financial Corp. | | | |
First Community Bankshares, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Global Medical REIT, Inc. | | | |
Schedule of Investments75
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
Goosehead Insurance, Inc., Class A | | | |
Great Southern Bancorp, Inc. | | | |
| | | |
Grid Dynamics Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
International Bancshares Corp. | | | |
iRhythm Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Liberty Media Corp.-Liberty Live, Class C | | | |
| | | |
Lindblad Expeditions Holdings, Inc. | | | |
Live Oak Bancshares, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mind Medicine MindMed, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
National Presto Industries, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Northwest Bancshares, Inc. | | | |
| | | |
| | | |
| | | |
Papa John’s International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
PennyMac Mortgage Investment Trust | | | |
Phathom Pharmaceuticals, Inc. | | | |
Phillips Edison & Co., Inc. | | | |
| | | |
Plymouth Industrial REIT, Inc. | | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
| | | |
RCI Hospitality Holdings, Inc. | | | |
| | | |
| | | |
Reliance Worldwide Corp. Ltd. | | | |
Retail Opportunity Investments Corp. | | | |
Rocket Lab USA, Inc., Class A | | | |
| | | |
Safety Insurance Group, Inc. | | | |
Seacoast Banking Corp. of Florida | | | |
Sensient Technologies Corp. | | | |
| | | |
Shenandoah Telecommunications Co. | | | |
Shoals Technologies Group, Inc., Class A | | | |
| | | |
SilverBow Resources, Inc. | | | |
| | | |
Six Flags Entertainment Corp. | | | |
| | | |
StepStone Group, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Community Banks, Inc. | | | |
United Natural Foods, Inc. | | | |
| | | |
Universal Health Realty Income Trust | | | |
| | | |
| | | |
| | | |
| | | |
Vishay Intertechnology, Inc. | | | |
| | | |
Vivid Seats, Inc., Class A | | | |
| | | |
| | | |
White Mountains Insurance Group Ltd. | | | |
| | | |
Worthington Enterprises, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hipgnosis Songs Fund Ltd. | | | |
762024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
AcadeMedia AB, (Expires 03/26/24) | | | |
| | | |
DocMorris AG, (Expires 05/06/24) | | | |
| | | |
| | | |
PointsBet Holdings Ltd., (Issued/Exercisable 06/20/22, 1 Share for 1 Warrant, Expires 07/08/24, Strike Price AUD 10.00) | | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — Goldman Sachs Bank USA | | |
The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with UBS AG as of period end, termination date 04/18/28:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Flight Centre Travel Group Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Liberty Global Ltd., Class C | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Algonquin Power & Utilities Corp. | | | |
| | | |
Bombardier, Inc., Class B | | | |
Canadian Natural Resources Ltd. | | | |
| | | |
Colliers International Group, Inc. | | | |
Element Fleet Management Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Magna International, Inc. | | | |
| | | |
| | | |
| | | |
West Fraser Timber Co. Ltd. | | | |
| | | |
| | | |
| | | |
AP Moller - Maersk A/S, Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gaztransport Et Technigaz SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bayerische Motoren Werke AG | | | |
| | | |
Deutsche Lufthansa AG, Registered Shares | | | |
Deutsche Telekom AG, Class N, Registered Shares | | | |
| | | |
| | | |
K&S AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Hang Lung Properties Ltd. | | | |
Hongkong Land Holdings Ltd. | | | |
Swire Pacific Ltd., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments77
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mediobanca Banca di Credito Finanziario SpA | | | |
| | | |
Recordati Industria Chimica e Farmaceutica SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Dai Nippon Printing Co. Ltd. | | | |
| | | |
| | | |
Fukuoka Financial Group, Inc. | | | |
| | | |
| | | |
J Front Retailing Co. Ltd. | | | |
| | | |
Japan Post Holdings Co. Ltd. | | | |
| | | |
| | | |
Koito Manufacturing Co., Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Mitsubishi Chemical Group Corp. | | | |
Mizuho Financial Group, Inc. | | | |
| | | |
| | | |
Nippon Express Holdings, Inc. | | | |
Nippon Telegraph & Telephone Corp. | | | |
| | | |
Nisshin Seifun Group, Inc. | | | |
| | | |
| | | |
| | | |
Ono Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sega Sammy Holdings, Inc. | | | |
| | | |
Sekisui Chemical Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sumitomo Mitsui Trust Holdings, Inc. | | | |
| | | |
Tokio Marine Holdings, Inc. | | | |
| | | |
Tokyu Fudosan Holdings Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Galaxy Entertainment Group Ltd., Class L | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Gjensidige Forsikring ASA | | | |
| | | |
| | | |
| | | |
| | | |
ACS Actividades de Construccion y Servicios SA | | | |
| | | |
Industria de Diseno Textil SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Land Securities Group PLC | | | |
| | | |
Marks & Spencer Group PLC | | | |
| | | |
Phoenix Group Holdings PLC | | | |
| | | |
| | | |
| | | |
782024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United Kingdom (continued) | | | |
| | | |
| | | |
| | | |
| | | |
Advanced Drainage Systems, Inc. | | | |
| | | |
Agilent Technologies, Inc. | | | |
| | | |
| | | |
Alnylam Pharmaceuticals, Inc. | | | |
| | | |
American Airlines Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Booz Allen Hamilton Holding Corp., Class A | | | |
| | | |
| | | |
Broadridge Financial Solutions, Inc. | | | |
| | | |
| | | |
| | | |
CACI International, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Columbia Banking System, Inc. | | | |
| | | |
Constellation Brands, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
First American Financial Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Halozyme Therapeutics, Inc. | | | |
| | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Jack Henry & Associates, Inc. | | | |
James Hardie Industries PLC, CDI | | | |
Jefferies Financial Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Lamar Advertising Co., Class A | | | |
Lattice Semiconductor Corp. | | | |
| | | |
Manhattan Associates, Inc. | | | |
| | | |
| | | |
| | | |
Mastercard, Inc., Class A | | | |
| | | |
Mettler-Toledo International, Inc. | | | |
MGM Resorts International | | | |
| | | |
| | | |
New York Times Co., Class A | | | |
| | | |
| | | |
| | | |
Ollie’s Bargain Outlet Holdings, Inc. | | | |
| | | |
| | | |
Paramount Global, Class B | | | |
Penske Automotive Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Ralph Lauren Corp., Class A | | | |
Regeneron Pharmaceuticals, Inc. | | | |
Reinsurance Group of America, Inc. | | | |
| | | |
| | | |
| | | |
Sarepta Therapeutics, Inc. | | | |
Service Corp. International | | | |
| | | |
Silicon Laboratories, Inc. | | | |
| | | |
| | | |
Taylor Morrison Home Corp., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments79
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
United Therapeutics Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Warner Bros Discovery, Inc., Class A | | | |
WESCO International, Inc. | | | |
| | | |
| | | |
WillScot Mobile Mini Holdings Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Bayerische Motoren Werke AG | | | |
| | | |
Total Reference Entity — Long | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
RenaissanceRe Holdings Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Novonesis (Novozymes), Class B | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Deutsche Bank AG, Class N, Registered Shares | | | |
Deutsche Post AG, Class N | | | |
Hannover Rueck SE, Class N | | | |
MTU Aero Engines AG, Class N | | | |
| | | |
| | | |
| | | |
| | | |
Henderson Land Development Co. Ltd. | | | |
HKT Trust & HKT Ltd., Class SS | | | |
Hong Kong & China Gas Co. Ltd. | | | |
| | | |
| | | |
Techtronic Industries Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
Mobileye Global, Inc., Class A | | | |
| | | |
| | | |
Assicurazioni Generali SpA | | | |
| | | |
| | | |
| | | |
FinecoBank Banca Fineco SpA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Harmonic Drive Systems, Inc. | | | |
| | | |
| | | |
Iida Group Holdings Co. Ltd. | | | |
Japan Airport Terminal Co. Ltd. | | | |
Japan Metropolitan Fund Invest | | | |
Japan Petroleum Exploration Co. Ltd. | | | |
802024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
Japan Real Estate Investment Corp. | | | |
| | | |
KDX Realty Investment Corp. | | | |
Keisei Electric Railway Co. Ltd. | | | |
| | | |
Kintetsu Group Holdings Co. Ltd., Class L | | | |
Kyushu Electric Power Co., Inc. | | | |
| | | |
| | | |
| | | |
Nippon Building Fund, Inc. | | | |
Nippon Sanso Holdings Corp. | | | |
| | | |
| | | |
| | | |
| | | |
Rohto Pharmaceutical Co. Ltd. | | | |
| | | |
| | | |
| | | |
Shinko Electric Industries Co. Ltd. | | | |
| | | |
| | | |
Square Enix Holdings Co. Ltd. | | | |
| | | |
| | | |
Tohoku Electric Power Co., Inc. | | | |
Tokyo Electric Power Co Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Auckland International Airport Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Banco Comercial Portugues SA, R Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Investment AB Latour, B Shares | | | |
| | | |
| | | |
| | | |
Skandinaviska Enskilda Banken AB, Class A | | | |
Svenska Handelsbanken AB, A Shares | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Coca-Cola Europacific Partners PLC | | | |
| | | |
| | | |
| | | |
| | | |
InterContinental Hotels Group PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Spirax-Sarco Engineering PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Allison Transmission Holdings, Inc. | | | |
Altair Engineering, Inc., Class A | | | |
American Homes 4 Rent, Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Schedule of Investments81
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
Axalta Coating Systems Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
BJ’s Wholesale Club Holdings, Inc. | | | |
| | | |
Boston Beer Co., Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Charles River Laboratories International, Inc. | | | |
| | | |
Choice Hotels International, Inc. | | | |
| | | |
| | | |
Cincinnati Financial Corp. | | | |
Core & Main, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
DoubleVerify Holdings, Inc. | | | |
| | | |
| | | |
| | | |
Dutch Bros, Inc., Class A | | | |
| | | |
| | | |
| | | |
Erie Indemnity Co., Class A | | | |
Extra Space Storage, Inc. | | | |
FactSet Research Systems, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Freshworks, Inc., Class A | | | |
| | | |
Globus Medical, Inc., Class A | | | |
Graphic Packaging Holding Co. | | | |
| | | |
Healthcare Realty Trust, Inc. | | | |
| | | |
Healthpeak Properties, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Huntington Bancshares, Inc. | | | |
Hyatt Hotels Corp., Class A | | | |
| | | |
| | | |
Interactive Brokers Group, Inc., Class A | | | |
International Flavors & Fragrances, Inc. | | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Laboratory Corp. of America Holdings | | | |
| | | |
| | | |
Liberty Media Corp.-Liberty Formula One, Class C | | | |
Live Nation Entertainment, Inc. | | | |
LPL Financial Holdings, Inc. | | | |
MACOM Technology Solutions Holdings, Inc., Class H | | | |
Madrigal Pharmaceuticals, Inc. | | | |
MarketAxess Holdings, Inc. | | | |
Marriott International, Inc., Class A | | | |
| | | |
| | | |
| | | |
MSC Industrial Direct Co., Inc., Class A | | | |
| | | |
National Storage Affiliates Trust | | | |
New Fortress Energy, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Packaging Corp. of America | | | |
| | | |
| | | |
Pinnacle Financial Partners, Inc. | | | |
Pinnacle West Capital Corp. | | | |
Planet Fitness, Inc., Class A | | | |
| | | |
Procore Technologies, Inc. | | | |
| | | |
Public Service Enterprise Group, Inc. | | | |
| | | |
Raymond James Financial, Inc. | | | |
| | | |
Rexford Industrial Realty, Inc. | | | |
Robinhood Markets, Inc., Class A | | | |
| | | |
Ryman Hospitality Properties, Inc. | | | |
| | | |
| | | |
SentinelOne, Inc., Class A | | | |
| | | |
Simpson Manufacturing Co., Inc. | | | |
| | | |
| | | |
SolarEdge Technologies, Inc. | | | |
| | | |
| | | |
| | | |
Starwood Property Trust, Inc. | | | |
| | | |
| | | |
| | | |
Take-Two Interactive Software, Inc. | | | |
| | | |
Teledyne Technologies, Inc. | | | |
822024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
TKO Group Holdings, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Wyndham Hotels & Resorts, Inc. | | | |
| | | |
Zebra Technologies Corp., Class A | | | |
| | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — UBS AG | | |
The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with UBS AG as of period end, termination dates 05/11/26 — 05/15/28:
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Growthpoint Properties Australia Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Temple & Webster Group Ltd. | | | |
Ventia Services Group Pty Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Raiffeisen Bank International AG | | | |
| | | |
| | | |
| | | |
AbCellera Biologics, Inc. | | | |
Ag Growth International, Inc. | | | |
| | | |
| | | |
| | | |
Doman Building Materials Group Ltd. | | | |
Innergex Renewable Energy, Inc. | | | |
| | | |
| | | |
North American Construction Group Ltd. | | | |
| | | |
| | | |
| | | |
Secure Energy Services, Inc. | | | |
| | | |
| | | |
Torex Gold Resources, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Etablissements Maurel et Prom SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Deutsche Pfandbriefbank AG | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
United Internet AG, Class N, Registered Shares | | | |
| | | |
| | | |
| | | |
| | | |
Ituran Location and Control Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Coca-Cola Bottlers Japan Holdings, Inc. | | | |
Computer Engineering & Consulting Ltd. | | | |
| | | |
| | | |
| | | |
Doutor Nichires Holdings Co. Ltd. | | | |
Schedule of Investments83
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
FULLCAST Holdings Co. Ltd. | | | |
Furukawa Electric Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Inaba Denki Sangyo Co. Ltd. | | | |
Ishihara Sangyo Kaisha Ltd. | | | |
| | | |
Japan Securities Finance Co. Ltd. | | | |
| | | |
| | | |
Kissei Pharmaceutical Co. Ltd. | | | |
| | | |
Kyoritsu Maintenance Co. Ltd. | | | |
| | | |
MEITEC Group Holdings, Inc. | | | |
Mitsui Mining & Smelting Co. Ltd. | | | |
Nippon Light Metal Holdings Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Sanki Engineering Co. Ltd. | | | |
| | | |
Shibaura Machine Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Yokogawa Bridge Holdings Corp. | | | |
| | | |
| | | |
| | | |
Eurocommercial Properties NV | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Atlantica Sustainable Infrastructure PLC | | | |
Merlin Properties Socimi SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Empiric Student Property PLC | | | |
| | | |
| | | |
| | | |
Jupiter Fund Management PLC | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
1-800-Flowers.com, Inc., Class A | | | |
| | | |
Accel Entertainment, Inc. | | | |
Albany International Corp., Class A | | | |
| | | |
| | | |
Alta Equipment Group, Inc., Class A | | | |
| | | |
Amneal Pharmaceuticals, Inc. | | | |
Amphastar Pharmaceuticals, Inc. | | | |
Anywhere Real Estate, Inc. | | | |
| | | |
| | | |
Atea Pharmaceuticals, Inc. | | | |
Atmus Filtration Technologies, Inc. | | | |
| | | |
| | | |
Capitol Federal Financial, Inc. | | | |
| | | |
| | | |
Central Garden & Pet Co., Class A | | | |
| | | |
CNO Financial Group, Inc. | | | |
Cogent Communications Holdings, Inc. | | | |
| | | |
842024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
Corcept Therapeutics, Inc. | | | |
| | | |
CSG Systems International, Inc. | | | |
| | | |
DigitalOcean Holdings, Inc. | | | |
Dime Community Bancshares, Inc. | | | |
| | | |
| | | |
El Pollo Loco Holdings, Inc. | | | |
| | | |
| | | |
Essential Properties Realty Trust, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Healthcare Services Group, Inc. | | | |
| | | |
Heidrick & Struggles International, Inc. | | | |
Huron Consulting Group, Inc. | | | |
| | | |
| | | |
| | | |
Ligand Pharmaceuticals, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Methode Electronics, Inc. | | | |
Midland States Bancorp, Inc. | | | |
Mueller Water Products, Inc., Class A | | | |
| | | |
| | | |
NexPoint Residential Trust, Inc. | | | |
NMI Holdings, Inc., Class A | | | |
| | | |
OceanFirst Financial Corp. | | | |
| | | |
| | | |
Park Hotels & Resorts, Inc. | | | |
Paymentus Holdings, Inc., Class A | | | |
| | | |
Perella Weinberg Partners, Class A | | | |
| | | |
| | | |
| | | |
Resideo Technologies, Inc. | | | |
REX American Resources Corp. | | | |
| | | |
| | | |
SEMrush Holdings, Inc., Class A | | | |
| | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
Southside Bancshares, Inc. | | | |
Strategic Education, Inc. | | | |
| | | |
Sun Country Airlines Holdings, Inc. | | | |
Supernus Pharmaceuticals, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Vishay Precision Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
BBGI Global Infrastructure SA | | | |
Total Reference Entity — Long | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Triple Flag Precious Metals Corp. | | | |
| | | |
| | | |
Establishment Labs Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Ringkjoebing Landbobank A/S | | | |
Schedule of Investments85
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
Scandinavian Tobacco Group A/S, Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Fraport AG Frankfurt Airport Services Worldwide | | | |
Mercer International, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Eurogroup Laminations SpA | | | |
| | | |
| | | |
| | | |
| | | |
Advance Residence Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Chikaranomoto Holdings Co. Ltd. | | | |
| | | |
Chubu Steel Plate Co. Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Daiwa Office Investment Corp. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Fukuyama Transporting Co. Ltd. | | | |
| | | |
GMO Financial Holdings, Inc. | | | |
| | | |
Hankyu Hanshin REIT, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Kanto Denka Kogyo Co. Ltd. | | | |
KeePer Technical Laboratory Co. Ltd. | | | |
| | | |
| | | |
Komehyo Holdings Co. Ltd. | | | |
Kosaido Holdings Co. Ltd. | | | |
| | | |
Kumiai Chemical Industry Co. Ltd. | | | |
| | | |
Mori Hills REIT Investment Corp. | | | |
Namura Shipbuilding Co. Ltd. | | | |
| | | |
| | | |
| | | |
Nippon Pillar Packing Co. Ltd. | | | |
Nomura Micro Science Co. Ltd. | | | |
NTT UD REIT Investment Corp. | | | |
| | | |
| | | |
| | | |
OSAKA Titanium Technologies Co. Ltd. | | | |
| | | |
| | | |
| | | |
Ryoyo Ryosan Holdings, Inc. | | | |
| | | |
SBI Sumishin Net Bank Ltd. | | | |
| | | |
Septeni Holdings Co. Ltd. | | | |
Shin Nippon Biomedical Laboratories Ltd. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Torishima Pump Manufacturing Co. Ltd. | | | |
| | | |
| | | |
Tsuburaya Fields Holdings, Inc. | | | |
| | | |
| | | |
| | | |
Yodogawa Steel Works Ltd. | | | |
| | | |
| | | |
| | | |
862024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
| | | |
| | | |
| | | |
AMG Critical Materials NV | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Greenvolt-Energias Renovaveis SA | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Laboratorios Farmaceuticos Rovi SA, Class R | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Auction Technology Group PLC | | | |
| | | |
Global Ship Lease, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
ACM Research, Inc., Class A | | | |
ACV Auctions, Inc., Class A | | | |
| | | |
| | | |
| | | |
American Coastal Insurance Corp., Class C | | | |
| | | |
| | | |
United States (continued) | | | |
Apollo Commercial Real Estate Finance, Inc. | | | |
| | | |
Ares Commercial Real Estate Corp. | | | |
ARMOUR Residential REIT, Inc. | | | |
Artesian Resources Corp., Class A | | | |
| | | |
| | | |
Atlas Energy Solutions, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Boston Omaha Corp., Class A | | | |
| | | |
| | | |
| | | |
California Water Service Group | | | |
| | | |
| | | |
| | | |
Cass Information Systems, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Crescent Energy Co., Class A | | | |
Cross Country Healthcare, Inc. | | | |
| | | |
| | | |
DiamondRock Hospitality Co. | | | |
| | | |
Distribution Solutions Group, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Excelerate Energy, Inc., Class A | | | |
F&G Annuities & Life, Inc. | | | |
| | | |
| | | |
First Bancorp/Southern Pines NC | | | |
| | | |
First Commonwealth Financial Corp. | | | |
First Community Bankshares, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Global Medical REIT, Inc. | | | |
| | | |
Goosehead Insurance, Inc., Class A | | | |
Great Southern Bancorp, Inc. | | | |
Grid Dynamics Holdings, Inc. | | | |
Schedule of Investments87
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
| | | |
United States (continued) | | | |
| | | |
| | | |
| | | |
I3 Verticals, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
International Bancshares Corp. | | | |
iRhythm Technologies, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Kura Sushi USA, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
Liberty Media Corp.-Liberty Live, Class C | | | |
| | | |
Lindblad Expeditions Holdings, Inc. | | | |
| | | |
Live Oak Bancshares, Inc. | | | |
| | | |
MasterCraft Boat Holdings, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
MP Materials Corp., Class A | | | |
| | | |
| | | |
| | | |
Northwest Natural Holding Co. | | | |
Nu Skin Enterprises, Inc., Class A | | | |
| | | |
OneWater Marine, Inc., Class A | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
PowerSchool Holdings, Inc., Class A | | | |
Preformed Line Products Co. | | | |
| | | |
United States (continued) | | | |
| | | |
| | | |
RCI Hospitality Holdings, Inc. | | | |
| | | |
| | | |
Retail Opportunity Investments Corp. | | | |
| | | |
Rocket Lab USA, Inc., Class A | | | |
| | | |
| | | |
Seacoast Banking Corp. of Florida | | | |
Select Water Solutions, Inc., Class A | | | |
Sensient Technologies Corp. | | | |
| | | |
Six Flags Entertainment Corp. | | | |
Smith Douglas Homes Corp. | | | |
Southern Missouri Bancorp, Inc. | | | |
Sphere Entertainment Co., Class A | | | |
| | | |
| | | |
StepStone Group, Inc., Class A | | | |
| | | |
Tandem Diabetes Care, Inc. | | | |
| | | |
Tarsus Pharmaceuticals, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Two Harbors Investment Corp. | | | |
| | | |
United Community Banks, Inc. | | | |
| | | |
| | | |
| | | |
Vivid Seats, Inc., Class A | | | |
| | | |
| | | |
White Mountains Insurance Group Ltd. | | | |
Wolverine World Wide, Inc. | | | |
| | | |
| | | |
| | | |
| | | |
Hipgnosis Songs Fund Ltd. | | | |
Total Reference Entity — Short | | | |
Net Value of Reference Entity — UBS AG | | |
Balances Reported in the Statements of Assets and Liabilities for OTC Swaps
882024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| | | | Foreign
Currency
Exchange
Contracts | | | |
Assets — Derivative Financial Instruments | | | | | | | |
Futures contracts
Unrealized appreciation on futures contracts(a) | | | | | | | |
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid | | | | | | | |
| | | | | | | |
Liabilities — Derivative Financial Instruments | | | | | | | |
Futures contracts
Unrealized depreciation on futures contracts(a) | | | | | | | |
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received | | | | | | | |
| | | | | | | |
| Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended April 30, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:
| | | | Foreign
Currency
Exchange
Contracts | | | |
Net Realized Gain (Loss) from: | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Options purchased are included in net realized gain (loss) from investments — unaffiliated. |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| |
Average notional value of contracts — long | |
Average notional value of contracts — short | |
| |
Average value of option contracts purchased | |
Average value of option contracts written | |
| |
| |
| Derivative financial instrument not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period. |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Schedule of Investments89
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
Derivative Financial Instruments — Offsetting as of Period End
The Fund’s derivative assets and liabilities (by type) were as follows:
| | |
Derivative Financial Instruments | | |
| | |
| | |
Total derivative assets and liabilities in the Statements of Assets and Liabilities | | |
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”) | | |
Total derivative assets and liabilities subject to an MNA | | |
| Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums paid/(received) in the Statements of Assets and Liabilities. |
The following table presents the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:
| Derivative
Assets
Subject to
an MNA by
Counterparty | Derivatives
Available
for Offset(a) | Non-Cash
Collateral
Received | Cash
Collateral
Received(b) | Net Amount
of Derivative
Assets(c) |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
Morgan Stanley & Co. International PLC | | | | | |
| | | | | |
| | | | | |
| Derivative
Liabilities
Subject to
an MNA by
Counterparty | Derivatives
Available
for Offset(a) | Non-Cash
Collateral
Pledged | | Net Amount
of Derivative
Liabilities(d) |
| | | | | |
| | | | | |
Morgan Stanley & Co. International PLC | | | | | |
| | | | | |
| | | | | |
| The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA. |
| Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes. |
| Net amount represents the net amount receivable from the counterparty in the event of default. |
| Net amount represents the net amount payable due to counterparty in the event of default. |
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.
902024 BlackRock Annual Report to Shareholders
Schedule of Investments (continued)April 30, 2024
BlackRock Global Equity Market Neutral Fund
Fair Value Hierarchy as of Period End (continued)
| | | | |
U.S. Government Sponsored Agency Securities | | | | |
U.S. Treasury Obligations | | | | |
| | | | |
| | | | |
U.S. Treasury Obligations | | | | |
| | | | |
Derivative Financial Instruments(a) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| Derivative financial instruments are swaps and futures contracts. Swaps and futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
See notes to financial statements.
Schedule of Investments91
Statements of Assets and LiabilitiesApril 30, 2024
| BlackRock
Advantage
Emerging Markets
Fund | BlackRock
Global Equity
Market
Neutral Fund |
| | |
Investments, at value — unaffiliated(a) | | |
Investments, at value — affiliated(b) | | |
| | |
| | |
Collateral — OTC derivatives | | |
| | |
Foreign currency, at value(c) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Variation margin on futures contracts | | |
Unrealized appreciation on OTC swaps | | |
| | |
| | |
| | |
Cash received as collateral for OTC derivatives | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Deferred foreign capital gain tax | | |
| | |
Trustees’ and Officer’s fees | | |
| | |
| | |
Service and distribution fees | | |
| | |
Variation margin on futures contracts | | |
Unrealized depreciation on OTC swaps | | |
| | |
Commitments and contingent liabilities | | |
| | |
| | |
| | |
Accumulated earnings (loss) | | |
| | |
(a)Investments, at cost—unaffiliated | | |
(b)Investments, at cost—affiliated | | |
(c)Foreign currency, at cost | | |
922024 BlackRock Annual Report to Shareholders
Statements of Assets and Liabilities (continued)April 30, 2024
| BlackRock
Advantage
Emerging Markets
Fund | BlackRock
Global Equity
Market
Neutral Fund |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
See notes to financial statements.
Statements of OperationsYear Ended April 30, 2024
| BlackRock
Advantage
Emerging Markets
Fund | BlackRock
Global Equity
Market
Neutral Fund |
| | |
| | |
| | |
| | |
Securities lending income — affiliated — net | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Administration — class specific | | |
Transfer agent — class specific | | |
Service and distribution — class specific | | |
| | |
| | |
Total expenses excluding interest expense | | |
Interest expense — unaffiliated | | |
| | |
| | |
Administration fees waived | | |
Administration fees waived by the Manager — class specific | | |
Fees waived and/or reimbursed by the Manager | | |
Transfer agent fees waived and/or reimbursed by the Manager — class specific | | |
Total expenses after fees waived and/or reimbursed | | |
| | |
REALIZED AND UNREALIZED GAIN (LOSS) | | |
Net realized gain (loss) from: | | |
Investments — unaffiliated(a) | | |
| | |
Foreign currency transactions | | |
| | |
| | |
| | |
| | |
Net change in unrealized appreciation (depreciation) on: | | |
Investments — unaffiliated(b) | | |
| | |
Foreign currency translations | | |
| | |
| | |
| | |
Net realized and unrealized gain | | |
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | | |
(a) Net of foreign capital gain tax and capital gain tax refund, if applicable of | | |
(b) Net of increase in deferred foreign capital gain tax of | | |
See notes to financial statements.
942024 BlackRock Annual Report to Shareholders
Statements of Changes in Net Assets
| BlackRock Advantage Emerging
Markets Fund | BlackRock
Global Equity
Market
Neutral Fund |
| | | | |
|
INCREASE (DECREASE) IN NET ASSETS | | | | |
| | | | |
| | | | |
| | | | |
Net change in unrealized appreciation (depreciation) | | | | |
Net increase (decrease) in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS(a) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Decrease in net assets resulting from distributions to shareholders | | | | |
CAPITAL SHARE TRANSACTIONS | | | | |
Net increase (decrease) in net assets derived from capital share transactions | | | | |
| | | | |
Total increase (decrease) in net assets | | | | |
| | | | |
| | | | |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
Financial Highlights(For a share outstanding throughout each period)
| BlackRock Advantage Emerging Markets Fund |
| |
| | | | | Period from
08/01/19
to 04/30/20 | |
|
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Net increase (decrease) from investment operations | | | | | | |
Distributions from net investment income(b) | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
| | | | | | |
Ratios to Average Net Assets(f) | | | | | | |
| | | | | | |
Total expenses after fees waived and/or reimbursed | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000) | | | | | | |
| | | | | | |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Includes payment from an affiliate, which had no impact on the Fund’s total return. |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit, printing and tax costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, total expenses would have been 1.42%. |
| Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the year ended July 31, 2019, the expenses ratio would have been 1.39%. |
| Includes non-recurring expenses of offering costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 1.40% and 0.90%, respectively. |
| Excludes underlying investments in total return swaps. |
See notes to financial statements.
962024 BlackRock Annual Report to Shareholders
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Advantage Emerging Markets Fund (continued) |
| |
| | | | | Period from
08/01/19
to 04/30/20 | |
|
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Net increase (decrease) from investment operations | | | | | | |
Distributions from net investment income(b) | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
| | | | | | |
Ratios to Average Net Assets(f) | | | | | | |
| | | | | | |
Total expenses after fees waived and/or reimbursed | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000) | | | | | | |
| | | | | | |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| |
| Includes payment from an affiliate, which had no impact on the Fund’s total return. |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit, printing and tax costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, total expenses would have been 1.74%. |
| Includes non-recurring expenses of offering costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 1.67% and 1.15%, respectively. |
| Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the year ended July 31, 2019, the expenses ratio would have been 1.67%. |
| Excludes underlying investments in total return swaps. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Advantage Emerging Markets Fund (continued) |
| |
| | | | | Period from
08/01/19
to 04/30/20 | |
|
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Net increase (decrease) from investment operations | | | | | | |
Distributions from net investment income(b) | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
| | | | | | |
Ratios to Average Net Assets(f) | | | | | | |
| | | | | | |
Total expenses after fees waived and/or reimbursed | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000) | | | | | | |
| | | | | | |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| |
| Includes payment from an affiliate, which had no impact on the Fund’s total return. |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit, printing and tax costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, total expenses would have been 2.57%. |
| Includes non-recurring expenses of offering costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 2.51% and 1.90%, respectively. |
| Excludes underlying investments in total return swaps. |
See notes to financial statements.
982024 BlackRock Annual Report to Shareholders
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Advantage Emerging Markets Fund (continued) |
| |
| | | | | Period from
08/01/19
to 04/30/20 | |
|
Net asset value, beginning of period | | | | | | |
| | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Net increase (decrease) from investment operations | | | | | | |
Distributions from net investment income(b) | | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
| | | | | | |
Ratios to Average Net Assets(f) | | | | | | |
| | | | | | |
Total expenses after fees waived and/or reimbursed | | | | | | |
| | | | | | |
| | | | | | |
Net assets, end of period (000) | | | | | | |
| | | | | | |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| |
| Includes payment from an affiliate, which had no impact on the Fund’s total return. |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Audit, printing and tax costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.45%. |
| Includes non-recurring expenses of offering costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 1.34%and 0.84%, respectively. |
| Excludes underlying investments in total return swaps. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Global Equity Market Neutral Fund |
| |
| | | | | Period from
08/01/19
to 04/30/20 | |
|
Net asset value, beginning of period | | | | | | |
Net investment income (loss)(a) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Net increase (decrease) from investment operations | | | | | | |
| | | | | | |
From net investment income | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
| | | | | | |
Ratios to Average Net Assets(g) | | | | | | |
| | | | | | |
Total expenses after fees waived and/or reimbursed | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (000) | | | | | | |
Portfolio turnover rate(i) | | | | | | |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| Includes payment from an affiliate, which had no impact on the Fund’s total return. |
| Includes payments from an affiliate, which impacted the Fund’s total return. Excluding the payments, the Fund’s total return would have been 5.12%. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Excludes underlying investments in total return swaps. |
See notes to financial statements.
1002024 BlackRock Annual Report to Shareholders
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Global Equity Market Neutral Fund (continued) |
| |
| | | | | Period from
08/01/19
to 04/30/20 | |
|
Net asset value, beginning of period | | | | | | |
Net investment income (loss)(a) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Net increase (decrease) from investment operations | | | | | | |
| | | | | | |
From net investment income | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
| | | | | | |
Ratios to Average Net Assets(h) | | | | | | |
| | | | | | |
Total expenses after fees waived and/or reimbursed | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (000) | | | | | | |
Portfolio turnover rate(j) | | | | | | |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Amount is greater than $(0.005) per share. |
| Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| Includes payment from an affiliate, which had no impact on the Fund’s total return. |
| Includes payments received from an affiliate, which impacted the Fund’s total return. Excluding the payments, the Fund’s total return would have been 4.83%. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Excludes underlying investments in total return swaps. |
See notes to financial statements.
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Global Equity Market Neutral Fund (continued) |
| |
| | | | | Period from
08/01/19
to 04/30/20 | |
|
Net asset value, beginning of period | | | | | | |
Net investment income (loss)(a) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Net increase (decrease) from investment operations | | | | | | |
| | | | | | |
From net investment income | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
| | | | | | |
Ratios to Average Net Assets(g) | | | | | | |
| | | | | | |
Total expenses after fees waived and/or reimbursed | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (000) | | | | | | |
Portfolio turnover rate(i) | | | | | | |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| Includes payment from an affiliate, which had no impact on the Fund’s total return. |
| Includes payments received from an affiliate, which impacted the Fund’s total return. Excluding the payments, the Fund’s total return would have been 4.09%. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Excludes underlying investments in total return swaps. |
See notes to financial statements.
1022024 BlackRock Annual Report to Shareholders
Financial Highlights (continued)(For a share outstanding throughout each period)
| BlackRock Global Equity Market Neutral Fund (continued) |
| |
| | | | | Period from
08/01/19
to 04/30/20 | |
|
Net asset value, beginning of period | | | | | | |
Net investment income (loss)(a) | | | | | | |
Net realized and unrealized gain (loss) | | | | | | |
Net increase (decrease) from investment operations | | | | | | |
| | | | | | |
From net investment income | | | | | | |
| | | | | | |
| | | | | | |
Net asset value, end of period | | | | | | |
| | | | | | |
| | | | | | |
Ratios to Average Net Assets(f) | | | | | | |
| | | | | | |
Total expenses after fees waived and/or reimbursed | | | | | | |
Net investment income (loss) | | | | | | |
| | | | | | |
Net assets, end of period (000) | | | | | | |
Portfolio turnover rate(h) | | | | | | |
| Based on average shares outstanding. |
| Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| Where applicable, assumes the reinvestment of distributions. |
| Includes payment from an affiliate, which had no impact on the Fund’s total return. |
| |
| Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| |
| Excludes underlying investments in total return swaps. |
See notes to financial statements.
Notes to Financial Statements
BlackRock FundsSM (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 following, each of which is a series of the Trust, are referred to herein collectively as the “Funds” or individually as a “Fund”:
| | Diversification
Classification |
BlackRock Advantage Emerging Markets Fund | Advantage Emerging Markets | |
BlackRock Global Equity Market Neutral Fund | Global Equity Market Neutral | |
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 without a sales charge and only to certain eligible investors. Investor A and Investor C Shares bear certain expenses related to shareholder servicing of such shares, and Investor C Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).
| | | |
Institutional and Class K Shares | | | |
| | | |
| | | To Investor A Shares after approximately 8 years |
| 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. |
| A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase. |
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 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. Dividends from foreign securities where the ex-dividend dates may have passed are subsequently recorded when the Funds are informed of the ex-dividend dates. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.
Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.
Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Foreign taxes withheld”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of April 30, 2024, if any, are disclosed in the Statements of Assets and Liabilities.
1042024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.
Bank Overdraft: The Funds had outstanding cash disbursements exceeding deposited cash amounts at the custodian during the reporting period. The Funds are obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statements of Operations.
Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
Distributions: Distributions paid by the Funds are recorded on the ex-dividend dates. Distributions of capital gains are recorded on the ex-dividend dates and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.
Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on their relative net assets or other appropriate methods. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.
3.
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies: Each Fund’ s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board has approved the designation of each Fund’s Manager as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
•Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.
•Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.
•Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).
•Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.
•Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) options and options on swaps (“swaptions”) are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.
•Swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.
Notes to Financial Statements105
Notes to Financial Statements (continued)
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.
For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs.
| Standard Inputs Generally Considered By The Valuation Committee And Third-Party Pricing Services |
| | recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; |
| | recapitalizations and other transactions across the capital structure; and |
| | market multiples of comparable issuers. |
| | future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; |
| | quoted prices for similar investments or assets in active markets; and |
| | other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. |
| | audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; |
| | changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; |
| | relevant news and other public sources; and |
| | known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company. |
Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.
The Private Companies are not subject to the public company disclosure, timing, and reporting standards applicable to other investments held by a Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.
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 Private Companies that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4.
SECURITIES AND OTHER INVESTMENTS
Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.
1062024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.
Warrants: Warrants entitle a fund to purchase a specified number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any. If the price of the underlying stock does not rise above the strike price before the warrant expires, the warrant generally expires without any value and a fund will lose any amount it paid for the warrant. Thus, investments in warrants may involve more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.
Securities Lending: Certain Funds may lend their securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Funds collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Funds are entitled to all distributions made on or in respect of the loaned securities, but do not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock 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 related collateral, if any, are shown separately in the Statements of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.
Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
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 benefit 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.
DERIVATIVE FINANCIAL INSTRUMENTS
The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or OTC.
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the
Notes to Financial Statements107
Notes to Financial Statements (continued)
difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
Options: The Funds may purchase and write call and put options to increase or decrease their exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.
A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.
Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value – unaffiliated and options written at value, respectively, in the Statements of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statements of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statements of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Funds write a call option, such option is typically “covered,” meaning that they hold the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statements of Assets and Liabilities.
In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that they may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Funds purchasing or selling a security when they otherwise would not, or at a price different from the current market value.
Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Funds and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).
For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statements of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC swaps in the Statements of Assets and Liabilities. Payments received or paid are recorded in the Statements of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.
In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the CCP becomes the Funds’ counterparty on the swap. Each Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, each Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Pursuant to the contract, each Fund agrees to receive from or pay to the broker variation margin. Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statements of Assets and Liabilities. Payments received from (paid to) the counterparty are amortized over the term of the contract and recorded as realized gains (losses) in the Statements of Operations, including those at termination.
•Total return swaps — Total return swaps are entered into to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).
Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket of underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instrument(s) or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Funds receive payment from or make a payment to the counterparty.
Certain total return swaps are designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.
Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Funds and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Statements of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Funds and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.
1082024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statements of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, a Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between a Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, a Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.
Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Funds and the counterparty.
Cash collateral that has been pledged to cover obligations of the Funds and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. A Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Funds from the counterparties are not fully collateralized, each Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stand ready to perform under the terms of their agreement with such counterparty, each Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.
For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.
6.
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory: The Trust, on behalf of each Fund, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.
For such services, each Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:
| |
| Advantage Emerging Markets | Global Equity Market Neutral |
| | |
| | |
| | |
| | |
| | |
With respect to Global Equity Market Neutral, the Manager entered into a sub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of the Manager. The Manager pays BIL for services it provides for that portion of the Fund for which BIL acts as sub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by Global Equity Market Neutral to the Manager.
Service and Distribution Fees: The Trust, on behalf of each Fund, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service 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:
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/reimburses BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.
Notes to Financial Statements109
Notes to Financial Statements (continued)
For the year ended April 30, 2024, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:
| | | |
Advantage Emerging Markets | | | |
Global Equity Market Neutral | | | |
Administration: The Trust, on behalf of each Fund, entered into an Administration Agreement with the Manager, an indirect, wholly-owned subsidiary of BlackRock, to provide administrative services. For these services, the Manager receives an administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of each Fund. The administration fee, which is shown as administration in the Statements of Operations, is paid at the annual rates below.
| |
| |
$500 million — $1 billion | |
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| |
| |
| |
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 April 30, 2024, the following table shows the class specific administration fees borne directly by each share class of each Fund:
| | | | | |
Advantage Emerging Markets | | | | | |
Global Equity Market Neutral | | | | | |
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 April 30, 2024, 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 April 30, 2024, 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:
| | | | | |
Advantage Emerging Markets | | | | | |
Global Equity Market Neutral | | | | | |
For the year ended April 30, 2024, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:
| | | | | |
Advantage Emerging Markets | | | | | |
Global Equity Market Neutral | | | | | |
Other Fees: For the year ended April 30, 2024, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:
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Advantage Emerging Markets | |
Global Equity Market Neutral | |
For the year ended April 30, 2024, affiliates received CDSCs as follows:
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Advantage Emerging Markets | |
Global Equity Market Neutral | |
Expense Limitations, Waivers and Reimbursements: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver") through June 30, 2025. The contractual agreement may be terminated upon 90 days’ notice by a majority of the trustees who are not “interested persons” of the Trust, as defined in the 1940 Act ("Independent Trustees"), or by a vote of a majority of the outstanding voting securities of a Fund. The amount of waivers and/or reimbursements of fees and
1102024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended April 30, 2024, the amounts waived were as follows:
| Fees Waived and/or Reimbursed
by the Manager |
Advantage Emerging Markets | |
Global Equity Market Neutral | |
The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2025. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. For the year ended April 30, 2024, there were no fees waived by the Manager pursuant to this arrangement.
With respect to Advantage Emerging Markets, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit other expenses (“expense limitation”) through June 30, 2025. Other expenses include accounting, administration, transfer agency, custody, professional and registration fees and exclude dividend expense, interest expense, and certain other fund expenses that constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business. The expense limitations as a percentage of average daily net assets are as follows:
| |
Advantage Emerging Markets | |
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With respect to Global Equity Market Neutral, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:
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Global Equity Market Neutral | |
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| |
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The Manager has agreed not to reduce or discontinue the contractual expense limitations through June 30, 2025, unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. For the year ended April 30, 2024, amounts included in the Statements of Operations were as follows:
| Fees Waived and/or Reimbursed
by the Manager |
Advantage Emerging Markets | |
Global Equity Market Neutral | |
| Administration
Fees Waived |
Advantage Emerging Markets | |
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 April 30, 2024, class specific expense waivers and/or reimbursements were as follows:
| Administration Fees Waived by the Manager- Class Specific |
| | | | | |
Advantage Emerging Markets | | | | | |
Global Equity Market Neutral | | | | | |
| Transfer Agent Fees Waived and/or
Reimbursed by the Manager - Class Specific |
| | | | | |
Advantage Emerging Markets | | | | | |
Global Equity Market Neutral | | | | | |
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
Notes to Financial Statements111
Notes to Financial Statements (continued)
Funds are responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional, managed by the Manager or its affiliates. However, BIM has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, redemption fee, distribution fee or service fee. The money market fund in which the cash collateral has been reinvested may impose a discretionary liquidity fee of up to 2% of the value redeemed, if such fee, is determined to be in the best interests of such money market fund.
Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral, (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. Each Fund retains a portion of the securities lending income and remits the remaining portion to BIM as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, Advantage Emerging Markets 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.
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, Advantage Emerging Markets, 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 April 30, 2024, each Fund paid BIM the following amounts for securities lending agent services:
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Advantage Emerging Markets | |
Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow and lend under the Interfund Lending Program.
A lending BlackRock fund may lend in aggregate up to 15% of its net assets but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.
During the year ended April 30, 2024, the Funds did not participate in the Interfund Lending Program.
Trustees and Officers: Certain trustees and/or officers of the Trust are directors and/or officers of BlackRock or its affiliates. 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 April 30, 2024, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:
| | | |
Advantage Emerging Markets | | | |
For the year ended April 30, 2024, purchases and sales of investments, excluding short-term securities, were as follows:
| U.S. Government Securities | |
| | | | |
Advantage Emerging Markets | | | | |
Global Equity Market Neutral | | | | |
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.
1122024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
Management has analyzed tax laws and regulations and their application to the Funds as of April 30, 2024, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.
The tax character of distributions paid was as follows:
| | |
Advantage Emerging Markets | | |
| | |
Global Equity Market Neutral | | |
| | |
As of April 30, 2024, the tax components of accumulated earnings (loss) were as follows:
| Undistributed
Ordinary Income | | | |
Advantage Emerging Markets | | | | |
Global Equity Market Neutral | | | | |
| Amounts available to offset future realized capital gains. |
| The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain futures contracts, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies, the accounting for swap agreements and the characterization of corporate actions. |
During the year ended April 30, 2024, the Funds listed below utilized the following amounts of their respective capital loss carryforward:
| |
Advantage Emerging Markets | |
Global Equity Market Neutral | |
As of April 30, 2024, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
| | Gross Unrealized
Appreciation | Gross Unrealized
Depreciation | Net Unrealized
Appreciation
(Depreciation) |
Advantage Emerging Markets | | | | |
Global Equity Market Neutral | | | | |
The Trust, on behalf of each Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is party to a 364-day, $2.40 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2025 unless extended or renewed. Prior to April 11, 2024, the aggregate commitment amount was $2.50 billion. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended April 30, 2024, the Funds did not borrow under the credit agreement.
In the normal course of business, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’ s prospectus provides details of the risks to which each Fund is subject.
The 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 discretionary liquidity fees under certain circumstances.
Notes to Financial Statements113
Notes to Financial Statements (continued)
Market Risk: Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain additional risks that do not generally apply to investments in securities of issuers in more developed capital markets, such as (i) low or nonexistent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities; (ii) lack of reliable settlement procedures and significant delays in registering the transfer of securities; (iii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iv) lack of publicly available or reliable information about issuers as a result of not being subject to the same degree of regulatory requirements and accounting, auditing and financial reporting standards; and (v) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments.
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.
The price a Fund could receive upon the sale of any particular portfolio investment may differ from a Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore a Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. A Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.
Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded options purchased and exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.
Certain Funds invest a substantial amount of their assets in issuers located in a single country or a limited number of countries. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions in those countries may have a significant impact on their investment performance and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Unanticipated or sudden political or social developments may cause uncertainty in the markets and as a result adversely affect the Fund’s investments. Foreign issuers may not be subject to the same uniform accounting, auditing and financial reporting standards and practices as used in the United States. Foreign securities markets may also be more volatile and less liquid than U.S. securities and may be less subject to governmental supervision not typically associated with investing in U.S. securities. Investment percentages in specific countries are presented in the Schedules of Investments.
Certain Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.
1142024 BlackRock Annual Report to Shareholders
Notes to Financial Statements (continued)
Certain Funds invest a significant portion of their assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Funds’ investments.
Certain Funds invest a significant portion of their assets in securities of issuers located in China or with significant exposure to Chinese issuers. Investments in Chinese securities, including certain Hong Kong-listed securities, involve risks specific to China. China may be subject to considerable degrees of economic, political and social instability and demonstrates significantly higher volatility from time to time in comparison to developed markets. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries may disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and the Fund’s investments. Reduction in spending on Chinese products and services, supply chain diversification, institution of tariffs, sanctions or other trade barriers, or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. In addition, measures may be taken to limit the flow of capital and/or sanctions may be imposed, which could prohibit or restrict the ability to own or transfer fund assets and may also include retaliatory actions, such as seizure of fund assets.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
11.
CAPITAL SHARE TRANSACTIONS
Transactions in capital shares for each class were as follows:
| | |
| | | | |
Advantage Emerging Markets | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
Shares sold and automatic conversion of shares | | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
Shares redeemed and automatic conversion of shares | | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | |
| | | | |
Global Equity Market Neutral | | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
Notes to Financial Statements115
Notes to Financial Statements (continued)
| | |
Fund Name / Share Class (continued) | | | | |
Global Equity Market Neutral (continued) | | | | |
| | | | |
Shares sold and automatic conversion of shares | | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
Shares redeemed and automatic conversion of shares | | | | |
| | | | |
| | | | |
| | | | |
Shares issued in reinvestment of distributions | | | | |
| | | | |
| | | | |
| | | | |
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.
1162024 BlackRock Annual Report to Shareholders
Report of Independent Registered Public Accounting Firm
To the Shareholders of BlackRock Advantage Emerging Markets Fund and BlackRock Global Equity Market Neutral Fund and the Board of Trustees of BlackRock FundsSM:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of BlackRock Advantage Emerging Markets Fund and BlackRock Global Equity Market Neutral Fund of BlackRock FundsSM (the “Funds”), including the schedules of investments, as of April 30, 2024, 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 four years in the period then ended and for the period from August 1, 2019 through April 30, 2020, 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 April 30, 2024, 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 four years in the period then ended and for the period from August 1, 2019 through April 30, 2020, in conformity with accounting principles generally accepted in the United States of America.
The financial highlights for the year ended July 31, 2019 of the Funds were audited by other auditors whose report dated September 24, 2019, expressed an unqualified opinion on those financial highlights.
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 April 30, 2024, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
Deloitte & Touche LLP
Boston, Massachusetts
June 24, 2024
We have served as the auditor of one or more BlackRock investment companies since 1992.
Report of Independent Registered Public Accounting Firm117
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 April 30, 2024:
| |
Advantage Emerging Markets | |
Global Equity Market Neutral | |
The Funds intend to pass through to their shareholders the following amounts, or maximum amounts allowable by law, of foreign source income earned and foreign taxes paid for the fiscal year ended April 30, 2024:
| Foreign Source
Income Earned | |
Advantage Emerging Markets | | |
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 April 30, 2024:
| Federal Obligation
Interest |
Advantage Emerging Markets | |
Global Equity Market Neutral | |
The law varies in each state as to whether and what percent of ordinary income dividends attributable to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.
The following percentages, or maximum percentages allowable by law, of ordinary income distributions paid during the fiscal year ended April 30, 2024 qualified for the dividends-received deduction for corporate shareholders:
| Dividends-Received
Deduction |
Advantage Emerging Markets | |
Global Equity Market Neutral | |
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 April 30, 2024:
| |
Advantage Emerging Markets | |
Global Equity Market Neutral | |
The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended April 30, 2024:
| Interest-
Related
Dividends |
Advantage Emerging Markets | |
Global Equity Market Neutral | |
1182024 BlackRock Annual Report to Shareholders
Statement Regarding Liquidity Risk Management Program
In compliance with Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”), BlackRock FundsSM (the “Trust”) has adopted and implemented a liquidity risk management program (the “Program”) for BlackRock Advantage Emerging Markets Fund and BlackRock Global Equity Market Neutral Fund (the “Funds”), each a series of the Trust, which is reasonably designed to assess and manage each Fund’s liquidity risk.
The Board of Trustees (the “Board”) of the Trust, on behalf of the Funds, met on November 16-17, 2023 (the “Meeting”) to review the Program. The Board previously appointed BlackRock Advisors, LLC or BlackRock Fund Advisors (“BlackRock”), each an investment adviser to certain BlackRock funds, as the program administrator for each Fund’s Program, as applicable. BlackRock also previously delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the management of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from October 1, 2022 through September 30, 2023 (the “Program Reporting Period”).
The Report described the Program’s liquidity classification methodology for categorizing each Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also referenced the methodology used by BlackRock to establish each Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually. The Report also discussed notable events affecting liquidity over the Program Reporting Period, including the imposition of capital controls in certain countries.
The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing each Fund’s liquidity risk, as follows:
a)
The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure with a focus on funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Where a fund participated in borrowings for investment purposes (such as tender option bonds or reverse repurchase agreements), such borrowings were factored into the Program’s calculation of a fund’s liquidity bucketing. A fund’s derivative exposure was also considered in such calculation.
b)
Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions. During the Program Reporting Period, the Committee reviewed historical redemption activity and used this information as a component to establish each Fund’s reasonably anticipated trading size utilized for liquidity classifications. Each Fund has adopted an in-kind redemption policy which may be utilized to meet larger redemption requests. The Committee may also take into consideration a fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a fund’s distribution channels, and the degree of certainty associated with a fund’s short-term and long-term cash flow projections.
c)
Holdings of cash and cash equivalents, as well as borrowing arrangements. The Committee considered the terms of the credit facility committed to each Fund, the financial health of the institution providing the facility and the fact that the credit facility is shared among multiple funds (including that a portion of the aggregate commitment amount is specifically designated for BlackRock Floating Rate Income Portfolio, a series of BlackRock Funds V, and BlackRock Floating Rate Loan ETF, a series of BlackRock ETF Trust II). The Committee also considered other types of borrowing available to the funds, such as the ability to use reverse repurchase agreements and interfund lending, as applicable.
There were no material changes to the Program during the Program Reporting Period other than the enhancement of certain model components in the Program’s classification methodology. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.
Statement Regarding Liquidity Risk Management Program119
Trustee and Officer Information
|
| | Principal Occupation(s) During Past 5 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 5 Years |
| Chair of the Board
(Since 2019) and
Trustee
(Since 2015) | 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 | |
| | 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 from 2018 to 2022; Advisory Board Member, Bridges Fund Management from 2016 to 2018; 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; Member of the President’s Counsel, Commonfund since 2023. | 28 RICs consisting of 164 Portfolios | |
| | Senior advisor, Insignia since 2024; Chief Investment Officer, Williams College from 2006 to 2023; 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 | |
| | 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 | |
| | Director, Pioneer Public Interest Law Center since 2023; Director, Charles Stark Draper Laboratory, Inc. from 2013 to 2021; 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 | |
1202024 BlackRock Annual Report to Shareholders
Trustee and Officer Information (continued)
Independent Trustees(a) (continued) |
| Position(s) Held (Length of Service)(c) | Principal Occupation(s) During Past 5 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 5 Years |
| | Director, Park Indemnity Ltd. (captive insurer) from 2010 to 2022. | 28 RICs consisting of 164 Portfolios | GrafTech International Ltd. (materials manufacturing); Sealed Air Corp. (packaging); WABCO (commercial vehicle safety systems) from 2015 to 2020; Hertz Global Holdings (car rental) from 2015 to 2021. |
Cynthia A. Montgomery
1952 | | Professor, Harvard Business School since 1989. | 28 RICs consisting of 164 Portfolios | |
| | Chair of the Board of Phoenix Art Museum since 2022 and Trustee thereof since 2018; Chair of the Investment Committee of The Arizona Community Foundation since 2022 and Trustee thereof since 2020; 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; Member of Affordable Housing Supply Board of Jackson, Wyoming from 2017 to 2022; Member, Investment Funds Committee, State of Wyoming from 2017 to 2023; 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. | 28 RICs consisting of 164 Portfolios | |
| | 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 2001, Emeritus since 2022; 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 | |
| | Advisory Board Member, Grossman School of Business at the University of Vermont since 2023; Advisory Board Member, Scientific Financial Systems since 2022; General Partner of Neon Liberty Capital Management, LLC from 2003 to 2023; Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; Director, Boston Hedge Fund Group from 2009 to 2018; Director, Massachusetts Council on Economic Education from 2013 to 2015; Director, Woodstock Ski Runners from 2013 to 2022. | 28 RICs consisting of 164 Portfolios | |
Trustee and Officer Information121
Trustee and Officer Information (continued)
Interested Trustees(a)(d) |
| | Principal Occupation(s) During Past 5 Years | Number of BlackRock-Advised
(“RICs”) Consisting of Investment
Portfolios (“Portfolios”) Overseen | Public Company and Other
Investment Company
Directorships Held During
Past 5 Years |
| | 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. | 96 RICs consisting of 266 Portfolios | |
| 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. | 98 RICs consisting of 268 Portfolios | |
| The address of each Trustee is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. |
| Independent Trustees serve until their resignation, retirement, removal or death, or until December 31 of the year in which they turn 75. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate. |
| 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. Furthermore, effective January 1, 2019, three BlackRock Fund Complexes were realigned and consolidated into two BlackRock 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: Cynthia A. Montgomery, 1994; Kenneth L. Urish, 1999; Lena G. Goldberg, 2016; Henry R. Keizer, 2016; Donald C. Opatrny, 2015. |
| 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. |
| Mr. Perlowski is also a trustee of the BlackRock Credit Strategies Fund and BlackRock Private Investments Fund. |
1222024 BlackRock Annual Report to Shareholders
Trustee and Officer Information (continued)
Officers Who Are Not Trustees(a) |
| Position(s) Held
(Length of Service) | Principal Occupation(s) During Past 5 Years |
| Vice President
(Since 2022) | Managing Director of BlackRock, Inc. since 2002; Head of Global Cash Management and Head of Securities Lending within BlackRock’s Global Markets Group since 2022; Member of BlackRock’s Global Operating Committee since 2016 and Human Capital Committee since 2023. |
| Vice President
(Since 2014) | Managing Director of BlackRock, Inc. since 2016. |
| Chief Financial Officer
(Since 2021) | Managing Director of BlackRock, Inc. since September 2019; Executive Vice President of PIMCO from 2016 to 2019. |
| | Managing Director of BlackRock, Inc. since 2007. |
| Chief Compliance Officer
(Since 2023) | Managing Director of BlackRock, Inc. since 2018; Chief Compliance Officer of the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the iShares Complex since 2023; Deputy Chief Compliance Officer for the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed- Income Complex and the iShares Complex from 2014 to 2023. |
| 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 BlackRock, Inc. since 2018. |
| The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001. |
| 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 July 1, 2023, Aaron Wasserman replaced Charles Park as Chief Compliance Officer of the Trust. |
Effective June 1, 2024, Lori Richards was appointed as a Trustee of the Trust. |
Trustee and Officer Information123
Tailored Shareholder Reports for Open-End Mutual Funds and ETFs
Effective January 24, 2023, the SEC adopted rule and form amendments to require open-end mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.
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.
1242024 BlackRock Annual Report to Shareholders
Additional Information (continued)
BlackRock Privacy Principles (continued)
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
Fund and Service Providers
Investment Adviser and Administrator
BlackRock Advisors, LLC
Wilmington, DE 19809
Sub-Adviser
BlackRock International Limited(a)
Edinburgh, EH3 8BL
United Kingdom
Accounting Agent and Custodian
State Street Bank and Trust Company
Boston, MA 02114
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Wilmington, DE 19809
(a) For Global Equity Market Neutral.
Distributor
BlackRock Investments, LLC
New York, NY 10001
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
Legal Counsel
Sidley Austin LLP
New York, NY 10019
Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809
Additional Information125
Glossary of Terms Used in this Report
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| American Depositary Receipt |
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| Build America Mutual Assurance Co. |
| CREST Depository Interest |
| Closed Joint Stock Company |
| Certificaten Van Aandelen (Dutch Certificate) |
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| Financial Times Stock Exchange |
| Global Depositary Receipt |
| Morgan Stanley Capital International |
| Non-Voting Depositary Receipt |
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| Public Joint Stock Company |
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| Real Estate Investment Trust |
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| Societe en Commandite par Actions |
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1262024 BlackRock Annual Report to Shareholders
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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.
(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 Advantage Emerging Markets Fund | | $47,838 | | $47,838 | | $407 | | $44 | | $16,328 | | $25,900 | | $0 | | $218 |
| BlackRock Defensive Advantage Emerging Markets Fund | | $31,212 | | $31,212 | | $407 | | $44 | | $15,288 | | $18,700 | | $0 | | $218 |
| BlackRock Global Equity Market Neutral Fund | | $64,464 | | $64,464 | | $407 | | $44 | | $28,960 | | $33,800 | | $0 | | $218 |
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
2
including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):
| | | | |
| | | Current Fiscal Year End | | Previous Fiscal Year End |
(b) Audit-Related Fees1 | | $0 | | $0 |
(c) Tax Fees2 | | $0 | | $0 |
(d) All Other Fees3 | | $2,149,000 | | $2,154,000 |
1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, 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 $2,149,000 and $2,154,000 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
3
(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 Advantage Emerging Markets Fund | | $16,735 | | $26,162 |
| BlackRock Defensive Advantage Emerging Markets Fund | | $15,695 | | $18,962 |
| BlackRock Global Equity Market Neutral Fund | | $29,367 | | $34,062 |
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 |
$2,149,000 | | $2,154,000 |
These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) – Not Applicable
(j) – Not Applicable
| Item 5 – | Audit Committee of Listed Registrant – Not Applicable |
| Item 6 – | Investments (a) The registrant’s Schedule of Investments is included as part of the 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 |
4
| Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable |
| Item 10 – | Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures. |
| Item 11 – | Controls and Procedures |
(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
| Item 12 – | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable |
| Item 13 – | Recovery of Erroneously Awarded Compensation – Not Applicable |
| Item 14 – | Exhibits attached hereto |
(a)(1) Code of Ethics – See Item 2
(a)(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the Registrant’s securities are listed – Not Applicable
(a)(3) Section 302 Certifications are attached
(a)(4) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable
(a)(5) Change in Registrant’s independent public accountant – Not Applicable
(b) Section 906 Certifications are attached
5
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock FundsSM
| | | | |
| | By: | | /s/ John M. Perlowski |
| | | | John M. Perlowski |
| | | | Chief Executive Officer (principal executive officer) of |
| | | | BlackRock FundsSM |
Date: June 24, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | | | |
| | By: | | /s/ John M. Perlowski |
| | | | John M. Perlowski |
| | | | Chief Executive Officer (principal executive officer) of |
| | | | BlackRock FundsSM |
Date: June 24, 2024
| | | | |
| | By: | | /s/ Trent Walker |
| | | | Trent Walker |
| | | | Chief Financial Officer (principal financial officer) of |
| | | | BlackRock FundsSM |
Date: June 24, 2024
6
