Blackrock Funds

12/03/2021 | Press release | Distributed by Public on 12/03/2021 09:47

Semi-Annual Report by Investment Company (Form N-CSRS)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05742
Name of Fund: BlackRock Funds
SM
BlackRock Wealth Liquid Environmentally Aware Fund
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds
SM
, 55 East 52nd Street, New York, NY 10055
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 03/31/2022
Date of reporting period: 09/30/2021
Item 1 - Report to Stockholders
(a)
The Report to Shareholders is attached herewith.
(b)
Not Applicable
September
30,
2021
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2021
Semi-Annual
Report
(Unaudited)
BlackRock
Funds
SM
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Dear
Shareholder,
The
12-month
reporting
period
as
of
September
30,
2021
was
a
remarkable
period
of
adaptation
and
recovery,
as
the
global
economy
dealt
with
the
implications
of
the
coronavirus
(or
"COVID-19")
pandemic.
The
United
States
began
the
reporting
period
as
the
initial
reopening-led
economic
rebound
was
beginning
to
slow.
Nonetheless,
the
economy
continued
to
grow
at
a
brisk
pace
for
the
reporting
period,
eventually
regaining
the
output
lost
from
the
pandemic.
Equity
prices
rose
with
the
broader
economy,
as
strong
fiscal
and
monetary
support,
as
well
as
the
development
of
vaccines,
made
investors
increasingly
optimistic
about
the
economic
outlook.
The
implementation
of
mass
vaccination
campaigns
and
passage
of
two
additional
fiscal
stimulus
packages
further
boosted
stocks,
and
many
equity
indices
neared
or
surpassed
all-time
highs
late
in
the
reporting
period.
In
the
United
States,
returns
of
small-capitalization
stocks,
which
benefited
the
most
from
the
resumption
of
in-person
activities,
outpaced
large-capitalization
stocks.
International
equities
also
gained,
as
both
developed
and
emerging
markets
continued
to
recover
from
the
effects
of
the
pandemic.
The
10-year
U.S.
Treasury
yield
(which
is
inversely
related
to
bond
prices)
had
fallen
sharply
prior
to
the
beginning
of
the
reporting
period,
which
meant
bonds
were
priced
for
extreme
risk
avoidance
and
economic
disruption.
Despite
expectations
of
doom
and
gloom,
the
economy
expanded
rapidly,
stoking
inflation
concerns
in
early
2021,
which
led
to
higher
yields
and
a
negative
overall
return
for
most
U.S.
Treasuries.
In
the
corporate
bond
market,
support
from
the
U.S.
Federal
Reserve
(the
"Fed")
assuaged
credit
concerns
and
led
to
solid
returns
for
high-yield
corporate
bonds,
although
investment-grade
corporates
declined
slightly.
The
Fed
remained
committed
to
accommodative
monetary
policy
by
maintaining
near-zero
interest
rates
and
by
reiterating
that
inflation
could
exceed
its
2%
target
for
a
sustained
period
without
triggering
a
rate
increase.
In
response
to
rising
inflation
late
in
the
period,
the
Fed
changed
its
market
guidance,
raising
the
possibility
of
higher
rates
in
2022
and
reducing
bond
purchasing
beginning
in
late
2021.
Looking
ahead,
we
believe
that
the
global
expansion
will
continue
to
broaden
as
Europe
and
other
developed
market
economies
gain
momentum,
although
the
delta
variant
of
the
coronavirus
remains
a
threat,
particularly
in
emerging
markets.
While
we
expect
inflation
to
remain
elevated
in
the
medium-term
as
the
expansion
continues,
we
believe
the
recent
uptick
owes
more
to
temporary
supply
disruptions
than
a
lasting
change
in
fundamentals.
The
change
in
Fed
policy
also
means
that
moderate
inflation
is
less
likely
to
be
followed
by
interest
rate
hikes
that
could
threaten
the
economic
expansion.
Overall,
we
favor
a
moderately
positive
stance
toward
risk,
with
an
overweight
in
equities.
Sectors
that
are
better
poised
to
manage
the
transition
to
a
lower-carbon
world,
such
as
technology
and
health
care,
are
particularly
attractive
in
the
long-term.
U.S.
small-capitalization
stocks
and
European
equities
are
likely
to
benefit
from
the
continuing
vaccine-led
restart,
while
Chinese
equities
stand
to
gain
from
a
more
accommodative
monetary
and
fiscal
environment
as
the
Chinese
economy
slows.
We
are
underweight
long-term
credit,
but
inflation-protected
U.S.
Treasuries,
Asian
fixed
income,
and
emerging
market
local-currency
bonds
offer
potential
opportunities.
We
believe
that
international
diversification
and
a
focus
on
sustainability
can
help
provide
portfolio
resilience,
and
the
disruption
created
by
the
coronavirus
appears
to
be
accelerating
the
shift
toward
sustainable
investments.
In
this
environment,
our
view
is
that
investors
need
to
think
globally,
extend
their
scope
across
a
broad
array
of
asset
classes,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
blackrock.com
for
further
insight
about
investing
in
today's
markets.
Sincerely,
Rob
Kapito
President,
BlackRock
Advisors,
LLC
The
Markets
in
Review
Rob
Kapito
President,
BlackRock
Advisors,
LLC
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
September
30,
2021
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
9.18%
30.00%
U.S.
small
cap
equities
(Russell
2000
®
Index)
(0.25)
47.68
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
4.70
25.73
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(3.45)
18.20
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
0.01
0.07
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
2.92
(6.22)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
1.88
(0.90)
Tax-exempt
municipal
bonds
(S&P
Municipal
Bond
Index)
1.24
2.71
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
3.65
11.27
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Semi-Annual
Report:
Money
Market
Overview
..................................................................................................
4
Fund
Information
.......................................................................................................
5
Disclosure
of
Expenses
...................................................................................................
5
Financial
Statements:
Schedule
of
Investments
................................................................................................
6
Statement
of
Assets
and
Liabilities
..........................................................................................
9
Statement
of
Operations
................................................................................................
11
Statements
of
Changes
in
Net
Assets
........................................................................................
12
Financial
Highlights
.....................................................................................................
13
Notes
to
Financial
Statements
...............................................................................................
18
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
...................................................................
24
Additional
Information
....................................................................................................
27
Glossary
of
Terms
Used
in
This
Report
.........................................................................................
29
Money
Market
Overview
For
the
Six-Month
Period
Ended
September
30,
2021
2021
BlackRock
Semi-Annual
Report
to
Shareholders
4
Throughout
much
of
the
period,
the
COVID-19
delta
variant
dominated
headlines
in
the
United
States
as
cases
and
hospitalizations
spiked,
threatening
the
sustained
economic
recovery,
both
domestically
and
abroad.
Economic
data
continued
to
improve
throughout
the
period,
underscored
by
the
drop
in
the
unemployment
rate
from
6.0%
in
March
2021
to
4.8%
as
of
September
30,
2021.
The
Fed
made
upward
"technical"
adjustments
of
0.05%
to
the
interest
rate
paid
on
required
and
excess
reserves
and
the
offering
rate
on
overnight
repurchase
agreements
operations
in
June
2021,
bringing
these
"administered
rates"
to
0.15%
and
0.05%,
respectively.
Fed
Chair
Jerome
Powell
noted
that
the
adjustments
were
made
"in
order
to
keep
the
Federal
Funds
rate
well
within
the
target
range
and
to
support
smooth
functioning
in
the
money
markets."
At
its
September
2021
meeting,
the
Federal
Open
Market
Committee
(the
"FOMC")
noted
that
"if
progress
(toward
its
maximum
employment
and
price
stability
goals)
continues
broadly
as
expected,
the
Committee
judges
that
a
moderation
in
the
pace
of
asset
purchases
may
soon
be
warranted."
At
the
press
conference
following
the
meeting,
Fed
Chair
Jerome
Powell
noted
the
FOMC
"could
easily
move
ahead
at
the
next
meeting"
(which
concludes
November
3,
2021).
Fed
Chair
Powell
also
acknowledged
that
"the
timing
and
pace
of
the
coming
reduction
in
asset
purchases
will
not
be
intended
to
carry
a
direct
signal
regarding
the
timing
of
interest-rate
liftoff,
for
which
(the
Fed
has)
articulated
a
different
and
substantially
more
stringent
test."
As
expected,
the
FOMC
left
the
range
for
the
Federal
Funds
target
rate
unchanged
at
0.00%
to
0.25%
during
the
period.
Following
the
September
2021
meeting,
the
"dot
plot"
interest
rate
projections,
in
our
opinion,
had
a
hawkish
lean
over
the
forecast
horizon.
The
forecast
for
2022
rose
to
0.25%
from
0.125%,
with
an
additional
six
rate
hikes
penciled
in
through
2024.
The
federal
debt
ceiling
situation
remains
front
and
center.
The
U.S.
Treasury
continues
to
employ
accounting
"maneuvers"
known
as
"extraordinary
measures"
to
fund
the
U.S.
government
following
the
expiration
of
the
suspension
of
the
debt
ceiling
at
the
end
of
July
2021.
Treasury
Secretary
Janet
Yellen
in
a
letter
to
Speaker
of
U.S.
House
of
Representatives
Nancy
Pelosi
and
congressional
leaders
on
September
28,
2021
estimated
that
"Treasury
is
likely
to
exhaust
its
extraordinary
measures
if
Congress
has
not
acted
to
raise
or
suspend
the
debt
limit
by
October
18."
Yields
on
Treasury
securities
maturing
around
this
so-called
"X-date"
were
moderately
elevated
relative
to
nearby
issues
in
late
September
2021.
Congress
passed
a
continuing
resolution
to
fund
the
U.S.
government
until
December
3,
2021;
however,
this
"stop-gap"
spending
bill
did
not
address
the
debt
ceiling,
which
will
need
to
be
either
re-suspended
or
raised
in
the
next
few
weeks.
With
the
debt
ceiling
yet
to
be
resolved,
net
Treasury
bill
issuance
fell
an
additional
$561
billion
throughout
the
third
quarter
of
2021,
on
top
of
a
decline
of
over
$680
billion
through
the
first
half
of
2021.
The
reduction
in
net
Treasury
bill
issuance
further
exacerbated
the
painful
supply-demand
imbalance
in
the
front-end
of
the
market.
Further,
liquidity
in
the
banking
system
remained
ample
given
ongoing
asset
purchases
by
the
Fed
and
a
sizable
contraction
in
the
Treasury
General
Account
more
than
$1
trillion
since
the
end
of
2020.
The
Fed's
overnight
reverse
repo
program
saw
increasingly
elevated
daily
volume
given
the
acute
disparity
between
supply
and
demand
in
the
front
end
of
the
market,
with
daily
utilization
peaking
at
a
record
$1.6
trillion
on
September
30,
2021.
The
secured
overnight
financing
rate-a
broad
measure
of
the
cost
of
borrowing
cash
overnight
collateralized
by
Treasury
securities-
held
steady
at
0.05%
throughout
the
third
quarter
of
2021.
The
secured
overnight
financing
rate
increased
to
0.05%
from
0.01%
following
the
FOMC's
technical
adjustments
to
the
interest
rate
on
excess
reserves
and
reverse
repo
program
rates
in
June.
The
supply-demand
picture
also
remained
challenging
in
the
credit
space.
The
three-month
London
Inter-bank
Offered
Rate
("LIBOR")
fell
to
an
all-time
low
of
0.11413%
on
September
9,
2021.
Similarly,
the
three-month
LIBOR-Overnight
Indexed
Swap
spread-a
gauge
of
stress
in
the
financial
system-remained
in
the
low
single
digits.
Industry-wide
money
market
mutual
funds
experienced
net
inflows
of
nearly
$47
billion
during
the
period
ending
September
30,
2021.
Of
this,
assets
of
prime
and
municipal
money
market
funds
fell
$10
billion
and
$46
billion,
respectively,
while
government
money
market
funds
experienced
over
$102
billion
of
inflows.
Specific
to
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund,
the
Fund's
strategic
allocations
as
of
September
30,
2021
embodied
the
investment
adviser's
outlook
that
downward
pressure
on
supply
will
persist
and
demand
for
money
market
assets
is
likely
to
continue
to
outpace
supply
over
much
of
the
remainder
of
2021.
Portfolio
purchases
during
the
period
were
focused
primarily
on
high-quality
commercial
paper
and
U.S.
dollar-denominated
certificates
of
deposits
in
the
one-
to
three-month
tenors.
The
portfolio
also
opportunistically
and
selectively
added
some
longer-dated
exposures,
in
both
fixed
and
floating
securities
throughout
the
period.
Issuer
and
security
selection
were
consistent
with
the
environmental
focus
of
the
portfolio.
Past
performance
is
no
guarantee
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Fund
Information
as
of
September
30,
2021
5
Fund
Information
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Investment
Objective
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund's
(the
"Fund")
investment
objective
is
to
seek
as
high
a
level
of
current
income
as
is
consistent
with
liquidity
and
preservation
of
capital
while
giving
consideration
to
select
environmental
criteria.
Expense
Example
Disclosure
of
Expenses
Shareholders
of
the
Fund
may
incur
the
following
charges:
(a)
transactional
expenses;
and
(b)
operating
expenses,
including
investment
advisory
fees,
administration
fees, service
and
distribution
fees,
and
other
fund
expenses.
The
expense
example
shown
(which
is
based
on
a
hypothetical
investment
of
$1,000
invested
on April
1,
2021 and
held
through
September
30,
2021)
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.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their share
class
under
the
heading
entitled
"Expenses
Paid
During
the
Period."
The
expense
example
also
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on the
Fund's
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the
ongoing
expenses
of
investing
in
the
Fund
and
other
funds,
compare
the
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
shareholder
reports
of
other
funds.
The
expenses
shown
in
the
expense
example
are
intended
to
highlight
shareholders'
ongoing
costs
only
and
do
not
reflect
transactional
expenses,
such
as
sales
charges,
if
any.
Therefore,
the
hypothetical
example is
useful
in
comparing
ongoing
expenses
only
and
will
not
help
shareholders
determine
the
relative
total
expenses
of
owning
different
funds.
If
these
transactional
expenses
were
included,
shareholder
expenses
would
have
been
higher.
Actual
Hypothetical
(a)
Beginning
Account
Value
(04/01/21)
Ending
Account
Value
(09/30/21)
Expenses
Paid
During
the
Period
(b)
Beginning
Account
Value
(04/01/21)
Ending
Account
Value
(09/30/21)
Expenses
Paid
During
the
Period
(b)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
1,000.00‌
$
0.85‌
$
1,000.00‌
$
1,024.22‌
$
0.86‌
0.17‌%
Premier
..................................
1,000.00‌
1,000.00‌
0.90‌
1,000.00‌
1,024.17‌
0.91‌
0.18‌
Service
..................................
1,000.00‌
1,000.00‌
0.90‌
1,000.00‌
1,024.17‌
0.91‌
0.18‌
Investor
A
................................
1,000.00‌
1,000.00‌
0.90‌
1,000.00‌
1,024.17‌
0.91‌
0.18‌
Investor
C
................................
1,000.00‌
1,000.00‌
0.90‌
1,000.00‌
1,024.17‌
0.91‌
0.18‌
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
365.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/365
(to
reflect
the
one-half
year
period
shown).
See
"Disclosure
of
Expenses"
for
further
information
on
how
expenses
were
calculated.
CURRENT
SEVEN-DAY
YIELDS
7-Day
SEC
Yields
7-Day
Yields
Institutional
..............................
0.01‌
%
0.01‌
%
Premier
................................
0.01‌
0.01‌
Service
................................
0.01‌
0.01‌
Investor
A
...............................
0.01‌
0.01‌
Investor
C
...............................
0.01‌
0.01‌
The
7-Day
SEC
Yields
may
differ
from
the
7-Day
Yields
shown
above
due
to
the
fact
that
the
7-Day
SEC
Yields
exclude
distributed
capital
gains.
Past
performance
is
not
an
indication
of
future
results.
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
Net
Assets
Commercial
Paper
...................................
47‌
%
Certificates
of
Deposit
.................................
23‌
Municipal
Bonds
....................................
10‌
Time
Deposits
......................................
10‌
Repurchase
Agreements
...............................
5‌
U.S.
Government
Sponsored
Agency
Obligations
..............
1‌
Corporate
Bonds
....................................
1‌
Other
Assets
Less
Liabilities
............................
3‌
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
6
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
September
30,
2021
Security
Par
(000)
Pa
r
(
000)
Value
Certificates
of
Deposit
-
23.5%
Domestic
-
0.8%
(a)
Bank
of
America
Corp.,
0.21%, 07/08/22
....
USD
1,750
$
1,750,000
Goldman
Sachs
Bank,
(SOFR
+
0.17%),
0.22%, 07/26/22
..................
10,000
10,000,000
11,750,000
Euro
-
1.2%
(b)
Bank
of
Montreal,
0.28%, 03/09/22
........
5,000
4,993,834
National
Westminster
Bank
plc,
0.21%, 03/31/22
..................
14,000
13,985,237
18,979,071
Yankee
-
21.5%
(c)
Bank
of
Montreal,
Chicago
(a)
:
(LIBOR
USD
3
Month
+
0.04%),
0.18%, 10/06/21
................
30,000
30,000,000
(SOFR
+
0.15%),
0.20%, 09/21/22
......
10,000
10,000,000
Bank
of
Nova
Scotia,
Houston
(a)
:
(SOFR
+
0.16%),
0.21%, 06/03/22
......
12,000
12,000,000
(SOFR
+
0.20%),
0.25%, 06/17/22
......
15,000
15,000,000
Canadian
Imperial
Bank
of
Commerce,
New
York
(a)
:
(LIBOR
USD
3
Month
+
0.04%),
0.18%, 10/04/21
................
30,000
30,000,000
(LIBOR
USD
3
Month
+
0.11%),
0.24%, 01/14/22
................
10,000
10,000,000
Credit
Suisse
AG,
New
York,
(SOFR
+
0.30%),
0.35%, 11/16/21
(a)
.................
20,000
20,000,000
Kookmin
Bank,
New
York,
(LIBOR
USD
1
Month
+
0.23%),
0.31%, 02/07/22
(a)
.....
9,000
9,000,000
Landesbank
Baden-Wuerttemberg,
New
York,
0.07%, 10/07/21
..................
49,000
49,000,000
MUFG
Bank
Ltd.,
New
York:
0.24%, 01/13/22
..................
5,000
5,000,000
0.23%, 01/28/22
..................
15,000
15,000,000
Natixis
SA,
New
York,
(SOFR
+
0.17%),
0.22%, 08/05/22
(a)
.................
12,000
12,000,000
Royal
Bank
of
Canada,
New
York,
(LIBOR
USD
3
Month
+
0.09%),
0.21%, 12/10/21
(a)
....
18,000
18,000,000
Standard
Chartered
Bank,
New
York
(a)
:
0.24%, 02/01/22
-
09/02/22
...........
22,250
22,250,000
Sumitomo
Mitsui
Trust
Bank
Ltd.,
New
York,
0.06%, 10/06/21
..................
45,000
45,000,000
Svenska
Handelsbanken
AB,
New
York,
0.24%, 04/06/22
..................
12,000
12,000,310
Swedbank
AB,
New
York,
(LIBOR
USD
3
Month
+
0.05%),
0.18%, 10/20/21
(a)
..........
20,000
19,999,945
334,250,255
Total
Certificates
of
Deposit
-
23.5%
(Cost:
$364,979,326)
..............................
364,979,326
Commercial
Paper
-
46.9%
Alinghi
Funding
Co.
LLC
(b)
:
0.14%,
12/07/21
..................
12,000
11,993,970
0.21%,
05/24/22
..................
6,000
5,991,775
Alpine
Securitization
LLC,
0.21%
,
06/13/22
(d)
.
20,000
20,000,000
Alpine
Securitization
Ltd.,
0.26%
,
07/08/22
(d)
.
25,000
25,000,000
Antalis
SA
(b)
:
0.10%,
10/05/21
..................
15,000
14,999,883
0.11%,
10/18/21
..................
21,000
20,998,711
0.12%,
11/10/21
..................
6,000
5,999,133
0.13%,
12/08/21
..................
10,650
10,646,379
0.14%,
01/20/22
..................
7,000
6,996,115
Security
Par
(000)
Par
(000)
Value
Commercial
Paper
(continued)
ANZ
New
Zealand
Int'l
Ltd.
(b)
:
0.12%,
04/19/22
..................
USD
10,000
$
9,991,111
0.13%,
04/26/22
..................
12,000
11,982,750
0.14%,
05/05/22
..................
10,000
9,985,000
ASB
Finance
Ltd.
(b)
:
0.13%,
03/07/22
..................
7,000
6,994,505
0.14%,
04/20/22
..................
20,000
19,981,575
Australia
&
New
Zealand
Banking
Group
Ltd.,
(LIBOR
USD
3
Month
+
0.03%),
0.15%
,
03/02/22
(a)
......................
10,000
10,000,000
Barclays
Bank
plc,
0.08%
,
10/01/21
(b)
......
20,000
20,000,000
Bayerische
Landesbank
(b)
:
0.06%,
10/01/21
..................
15,000
15,000,000
0.06%,
10/06/21
..................
40,000
39,999,667
BNZ
International
Funding
Ltd.
(b)
:
0.08%,
11/16/21
..................
8,000
7,997,904
0.11%,
01/25/22
..................
20,000
19,989,045
BPCE
SA
(b)
:
0.10%,
12/01/21
..................
14,000
13,992,053
0.10%,
12/09/21
..................
10,000
9,993,579
Britannia
Funding
Co.
LLC
(b)(d)
:
0.17%,
02/16/22
..................
30,700
30,679,994
0.17%,
02/22/22
..................
7,000
6,995,240
Cargill,
Inc.,
0.07%
,
10/01/21
(b)
...........
35,000
35,000,000
Citigroup
Global
Markets,
Inc.,
0.17%
,
06/03/22
(b)
......................
20,000
19,974,139
Commonwealth
Bank
of
Australia,
(LIBOR
USD
3
Month
+
0.04%),
0.17%
,
05/23/22
(a)
....
35,000
35,000,000
Crown
Point
Capital
Co.
LLC,
0.34%
,
04/25/22
(d)
......................
10,000
10,000,000
Goldman
Sachs
International,
0.30%
,
09/23/22
(b)
......................
6,000
5,985,125
Hydro-Quebec,
0.06%
,
10/01/21
(b)
........
35,000
35,000,000
ING
US
Funding
LLC
(b)
:
0.10%,
12/14/21
..................
9,000
8,994,543
0.12%,
02/18/22
..................
6,500
6,494,944
Kookmin
Bank,
0.09%
,
11/02/21
(b)
.........
17,000
16,997,733
National
Australia
Bank
Ltd.
(a)
:
(LIBOR
USD
3
Month
+
0.04%),
0.17%,
03/29/22
.....................
7,000
7,000,000
(SOFR
+
0.12%),
0.17%,
06/16/22
......
12,000
12,000,000
National
Bank
of
Canada,
0.09%
,
10/25/21
(b)
.
25,000
24,996,667
Santander
UK
plc,
0.07%
,
10/01/21
(b)
......
50,000
50,000,000
Skandinaviska
Enskilda
Banken
AB,
0.15%
,
05/02/22
(b)
......................
10,000
9,989,350
Societe
Generale
SA,
0.14%
,
03/31/22
(b)
....
5,000
4,995,475
Sumitomo
Mitsui
Trust
Bank
Ltd.,
0.08%
,
10/27/21
(b)
......................
7,000
6,999,318
Toronto-Dominion
Bank
(The),
0.08%
,
10/04/21
(b)
......................
30,000
29,999,850
UBS
AG:
(SOFR
+
0.20%),
0.25%,
02/08/22
(a)
....
8,000
8,000,000
0.23%,
08/18/22
(b)
.................
12,000
11,973,250
0.22%,
09/22/22
(a)
.................
10,000
10,000,000
Westpac
Banking
Corp.
(a)
:
(LIBOR
USD
3
Month
+
0.01%),
0.13%,
02/04/22
.....................
10,000
9,999,648
(LIBOR
USD
3
Month
+
0.02%),
0.14%,
02/17/22
.....................
14,000
13,999,644
Total
Commercial
Paper
-
46.9%
(Cost:
$729,608,075)
..............................
729,608,075
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Schedule
of
Investments
7
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(unaudited)
(continued)
September
30,
2021
Security
Par
(000)
Pa
r
(
000)
Value
Corporate
Bonds
-
0.6%
Consumer
Finance
-
0.6%
Toyota
Motor
Credit
Corp.,
(SOFR
+
0.15%),
0.20%,
08/15/22
(a)
................
USD
9,198
$
9,198,000
Total
Corporate
Bonds
-
0.6%
(Cost:
$9,198,000)
...............................
9,198,000
Municipal
Bonds
-
10.2%
Arizona
-
3.5%
(d)(e)(f)
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States,
Series
2020-MIZ9031,
RB,
VRDN
(Mizuho
Capital
Mkts
LLC
LOC),
0.34%, 11/04/21
..................
13,630
13,630,000
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States,
Series
2020-MIZ9037,
RB,
VRDN
(Mizuho
Capital
Mkts
LLC
LOC),
0.34%, 11/04/21
..................
25,000
25,000,000
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States,
Series
2020-MIZ9045,
RB,
VRDN
(Mizuho
Capital
Mkts
LLC
LOC),
0.34%, 11/04/21
..................
15,000
15,000,000
53,630,000
California
-
0.6%
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States,
Series
2020-MIZ9048,
RB,
VRDN
(Mizuho
Capital
Mkts
LLC
LOC),
0.34%, 11/04/21
(d)(e)(f)
...............
9,345
9,345,000
Colorado
-
0.6%
Colorado
Housing
and
Finance
Authority,
Series
2021C-2,
RB,
VRDN
(Federal
Home
Loan
Bank
SBPA),
0.06%, 10/07/21
(f)
........
9,485
9,485,000
Florida
-
1.8%
Abag
Finance
Authority
for
Nonprofit
Corp.,
Tender
Option
Bond
Trust
Receipts/
Certificates
Various
States,
Series
2020-
XFT1204,
RB,
VRDN
(JP
Morgan
Chase
Bank
NA
LIQ),
0.14%, 10/07/21
(d)(e)(f)
.....
28,325
28,325,000
Security
Par
(000)
Par
(000)
Value
New
York
-
1.7%
Taxable
Series
2021-XFT1210,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States,
Series
2021-XFT1210,
RB,
VRDN
(JP
Morgan
Chase
Bank
NA
LIQ),
0.14%, 10/07/21
(d)(e)(f)
...............
USD
26,390
$
26,390,000
Rhode
Island
-
2.0%
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States,
Series
2020-MIZ9023,
RB,
VRDN
(Mizuho
Capital
Mkts
LLC
LOC),
0.33%, 11/04/21
(d)(e)(f)
...............
30,915
30,915,000
Total
Municipal
Bonds
-
10.2%
(Cost:
$158,090,000)
..............................
158,090,000
Time
Deposits
-
9.5%
Credit
Agricole
Corporate
and
Investment
Bank
SA,
0.05%, 10/01/21
...............
1,600
1,600,000
Royal
Bank
of
Canada,
0.05%, 10/01/21
....
25,000
25,000,000
Skandinaviska
Enskilda
Banken
AB,
0.05%, 10/01/21
..................
62,000
62,000,000
Svenska
Handelsbanken
AB,
0.05%, 10/01/21
20,000
20,000,000
Swedbank
AB,
0.06%, 10/01/21
..........
40,000
40,000,000
Total
Time
Deposits
-
9.5%
(Cost:
$148,600,000)
..............................
148,600,000
U.S.
Government
Sponsored
Agency
Obligations
-
1.2%
United
States
International
Development
Finance
Corp.
Variable
Rate
Notes:
(3
Month
Treasury
B
ill
Rate
+
0.00%),
0.09%,
10/07/21
(a)
...............
18,319
18,318,750
Total
U.S.
Government
Sponsored
Agency
Obligations
-
1.2%
(Cost:
$18,318,750)
...............................
18,318,750
Total
Repurchase
Agreements
-
5.3%
(Cost:
$83,000,000)
...............................
83,000,000
Total
Investments
-
97.2%
(Cost:
$1,511,794,151
)
(g)
...........................
1,511,794,151
Other
Assets
Less
Liabilities
-
2.8%
....................
43,604,836
Net
Assets
-
100.0%
...............................
$
1,555,398,987
(a)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(b)
Rates
are
the
current
rate
or
a
range
of
current
rates
as
of
period
end.
(c)
Issuer
is
a
U.S.
branch
of
a
foreign
domiciled
bank.
(d)
Security
exempt
from
registration
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933,
as
amended.
These
securities
may
be
resold
in
transactions
exempt
from
registration
to
qualified
institutional
investors.
(e)
These
securities
are
short-term
floating
rate
certificates
issued
by
tender
option
bond
trusts
and
are
secured
by
the
underlying
municipal
bond
securities.
(f)
Variable
rate
security.
Rate
as
of
period
end
and
maturity
is
the
date
the
principal
owed
can
be
recovered
through
demand.
(g)
Cost
for
U.S.
federal
income
tax
purposes.
2021
BlackRock
Semi-Annual
Report
to
Shareholders
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
8
Schedule
of
Investments
(unaudited)
(continued)
September
30,
2021
See
notes
to
financial
statements.
Repurchase
Agreements
Repurchase
Agreements
Collateral
Counterparty
Coupon
Rate
Purchase
Date
Maturity
Date
Par
(000)
A
t
Value
(000)
Proceeds
Including
Interest
Position
Original
Par
Position
Received,
At
Value
Bank
of
America
Securities,
Inc.
...
0.05
%
09/30/21
10/01/21
$
43,000
$
43,000
$
43,000,060
U.S.
Treasury
Obligation,
2.00%,
due
11/30/22
.........
$
42,648,800
$
43,860,012
$
-
$
-
Citigroup
Global
Markets,
Inc.
...........
0.06
09/30/21
10/01/21
20,000
20,000
20,000,033
U.S.
Government
Sponsored
Agency
Obligations,
3.00%
to
23.58%,
due
11/25/36
to
10/15/48
.......
26,096,415
21,406,357
$
-
$
-
Fixed
Income
Clearing
Corp
.
..........
0.05
09/30/21
10/01/21
8,000
8,000
8,000,011
U.S.
Treasury
Obligation,
0.05%,
due
10/01/21
.........
9,396,200
8,160,015
$
-
$
-
JP
Morgan
Securities
LLC
...........
0.05
09/30/21
10/01/21
10,000
10,000
10,000,014
U.S.
Government
Sponsored
Agency
Obligations,
2.50%
to
5.00%,
due
03/20/32
to
03/20/51
.........
14,151,666
10,200,000
$
-
$
-
Mizuho
Securities
USA
LLC
...........
0.05
09/30/21
10/01/21
2,000
2,000
2,000,003
U.S.
Government
Sponsored
Agency
Obligation,
3.00%,
due
09/20/51
.........
2,076,643
2,100,000
$
-
$
-
$
83,000
$
85,726,384
$
-
$
-
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund's
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund's
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Short-Term
Securities
.......................................
$
-
$
1,511,794,151
$
-
$
1,511,794,151
Statement
of
Assets
and
Liabilities
(unaudited)

September
30,
2021
9
Financial
Statements
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
ASSETS
Investments,
at
value
-
unaffiliated
(a)
........................................................................................
$
1,428,794,151‌
Cash
.............................................................................................................
44,684,359‌
Repurchase
agreements,
at
value
(b)
.........................................................................................
83,000,000‌
Receivables:
-‌
Capital
shares
sold
...................................................................................................
575,925‌
Interest
-
unaffiliated
.................................................................................................
236,634‌
From
the
Manager
...................................................................................................
1,786‌
Prepaid
expenses
.....................................................................................................
168,483‌
Total
assets
.........................................................................................................
1,557,461,338‌
LIABILITIES
Payables:
-‌
Administration
fees
...................................................................................................
74,257‌
Capital
shares
redeemed
...............................................................................................
1,617,889‌
Income
dividend
distributions
............................................................................................
726‌
Investment
advisory
fees
..............................................................................................
98,555‌
Trustees'
and
Officer's
fees
.............................................................................................
4,000‌
Other
affiliate
fees
...................................................................................................
35,533‌
Other
accrued
expenses
...............................................................................................
231,391‌
Total
liabilities
........................................................................................................
2,062,351‌
NET
ASSETS
........................................................................................................
$
1,555,398,987‌
NET
ASSETS
CONSIST
OF
Paid-in
capital
........................................................................................................
$
1,555,196,802‌
Accumulated
earnings
..................................................................................................
202,185‌
NET
ASSETS
........................................................................................................
$
1,555,398,987‌
(a)
Investments,
at
cost
-
unaffiliated
........................................................................................
$
1,428,794,151‌
(b)
Repurchase
agreements,
at
cost
-
unaffiliated
................................................................................
$
83,000,000‌
See
notes
to
financial
statements.
Statement
of
Assets
and
Liabilities
(unaudited)
(continued)
September
30,
2021
2021
BlackRock
Semi-Annual
Report
to
Shareholders
10
See
notes
to
financial
statements.
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
NET
ASSET
VALUE
Institutional
Net
assets
........................................................................................................
$
272,758,205‌
Shares
outstanding
.................................................................................................
272,745,467‌
Net
asset
value
....................................................................................................
$
1.00‌
Shares
authorized
..................................................................................................
Unlimited
Par
value
........................................................................................................
$
0.00
1‌
Premier
Net
assets
........................................................................................................
$
36,746‌
Shares
outstanding
.................................................................................................
36,744‌
Net
asset
value
....................................................................................................
$
1.00‌
Shares
authorized
..................................................................................................
Unlimited
Par
value
........................................................................................................
$
0.00
1‌
Service
Net
assets
........................................................................................................
$
28,176,752‌
Shares
outstanding
.................................................................................................
28,175,436‌
Net
asset
value
....................................................................................................
$
1.00‌
Shares
authorized
..................................................................................................
Unlimited
Par
value
........................................................................................................
$
0.00
1‌
Investor
A
Net
assets
........................................................................................................
$
1,242,193,331‌
Shares
outstanding
.................................................................................................
1,242,135,270‌
Net
asset
value
....................................................................................................
$
1.00‌
Shares
authorized
..................................................................................................
Unlimited
Par
value
........................................................................................................
$
0.00
1‌
Investor
C
Net
assets
........................................................................................................
$
12,233,953‌
Shares
outstanding
.................................................................................................
12,233,382‌
Net
asset
value
....................................................................................................
$
1.00‌
Shares
authorized
..................................................................................................
Unlimited
Par
value
........................................................................................................
$
0.00
1‌
Statement
of
Operations
(unaudited)

Six
Months
Ended
September
30,
2021
11
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
INVESTMENT
INCOME
Interest
-
unaffiliated
................................................................................................
$
1,707,162‌
Total
investment
income
.................................................................................................
1,707,162‌
EXPENSES
Investment
advisory
..................................................................................................
3,965,431‌
Service
and
distribution
-
class
specific
....................................................................................
1,916,094‌
Administration
.....................................................................................................
367,052‌
Administration
-
class
specific
..........................................................................................
185,798‌
Transfer
agent
-
class
specific
..........................................................................................
183,962‌
Registration
.......................................................................................................
103,402‌
Professional
.......................................................................................................
81,711‌
Accounting
services
..................................................................................................
32,123‌
Custodian
.........................................................................................................
21,336‌
Trustees
and
Officer
..................................................................................................
8,001‌
Miscellaneous
......................................................................................................
64,331‌
Total
expenses
.......................................................................................................
6,929,241‌
Less:
-‌
Administration
fees
waived
-
class
specific
..................................................................................
(179,753‌)
Fees
waived
and/or
reimbursed
by
the
Manager
...............................................................................
(3,008,117‌)
Service
and
distribution
fees
waived
and/or
reimbursed
-
class
specific
...............................................................
(1,916,094‌)
Transfer
agent
fees
waived
and/or
reimbursed
-
class
specific
.....................................................................
(161,334‌)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
1,663,943‌
Net
investment
income
..................................................................................................
43,219‌
REALIZED
GAIN
$
11,534‌
Net
realized
gain
from
investments
........................................................................................
11,534‌
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
..................................................................
$
54,753‌
Statements
of
Changes
in
Net
Assets

2021
BlackRock
Semi-Annual
Report
to
Shareholders
12
See
notes
to
financial
statements.
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Six
Months
Ended
09/30/21
(unaudited)
Year
Ended
03/31/21
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..............................................................................
$
43,219‌
$
3,361,668‌
Net
realized
gain
..................................................................................
11,534‌
221,016‌
Net
increase
in
net
assets
resulting
from
operations
.............................................................
54,753‌
3,582,684‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Institutional
....................................................................................
(13,746‌)
(971,388‌)
Premier
.......................................................................................
(1‌)
(79‌)
Service
.......................................................................................
(683‌)
(15,811‌)
Investor
A
.....................................................................................
(28,509‌)
(2,515,253‌)
Investor
C
.....................................................................................
(280‌)
(20,815‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(43,219‌)
(3,523,346‌)
CAPITAL
SHARE
TRANSACTIONS
Net
decrease
in
net
assets
derived
from
capital
share
transactions
...................................................
(706,824,881‌)
(758,932,753‌)
NET
ASSETS
Total
decrease
in
net
assets
............................................................................
(706,813,347‌)
(758,873,415‌)
Beginning
of
period
..................................................................................
2,262,212,334‌
3,021,085,749‌
End
of
period
......................................................................................
$
1,555,398,987‌
$
2,262,212,334‌
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
13
Financial
Highlights
See
notes
to
financial
statements.
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Institutional
Six
Months
Ended
09/30/21
(unaudited)
Year
Ended
March
31,
2021
2020
2019
2018
2017
Net
asset
value,
beginning
of
period
...............
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
Net
investment
income
........................
0.0000‌
(a)
0.0021‌
0.0195‌
0.0213‌
0.0118‌
0.0061‌
Net
realized
gain
............................
0.0000‌
(a)
0.0001‌
0.0000‌
(a)
0.0000‌
(a)
0.0004‌
0.0002‌
Net
increase
from
investment
operations
..............
0.0000‌
0.0022‌
0.0195‌
0.0213‌
0.0122‌
0.0063‌
Distributions
(b)
-
-
-
-
-
-
From
net
investment
income
....................
(0.0000‌)
(c)
(0.0021‌)
(0.0195‌)
(0.0213‌)
(0.0122‌)
(0.0061‌)
From
net
realized
gain
.........................
-‌
(0.0001‌)
(0.0000‌)
(c)
(0.0000‌)
(c)
-‌
(0.0002‌)
Total
distributions
.............................
(0.0000‌)
(0.0022‌)
(0.0195‌)
(0.0213‌)
(0.0122‌)
(0.0063‌)
Net
asset
value,
end
of
period
....................
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
Total
Return
(d)
-
0.21%
1.97%
2.15%
-
-
Based
on
net
asset
value
........................
0.00%
(e)(f)
0.21%
1.97%
2.15%
1.23%
0.63%
Ratios
to
Average
Net
Assets
Total
expenses
...............................
0.53%
(g)
0.53%
0.56%
0.60%
0.56%
0.56%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.17%
(g)
0.20%
0.20%
0.20%
0.20%
0.20%
Net
investment
income
.........................
0.01%
(g)
0.18%
1.94%
2.17%
1.18%
0.61%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
272,758‌
$
523,322‌
$
369,187‌
$
336,387‌
$
305,669‌
$
569,757‌
(a)
Amount
is
less
than
$0.00005
per
share.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.00005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Aggregate
total
return.
(f)
Amount
is
less
than
0.005%.
(g)
Annualized.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
14
See
notes
to
financial
statements.
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Premier
Six
Months
Ended
09/30/21
(unaudited)
Year
Ended
03/31/2021
Period
from
07/26/19
(a)
to
03/31/20
Net
asset
value,
beginning
of
period
...........................................................
$
1.00‌
$
1.00‌
$
1.00‌
Net
investment
income
....................................................................
0.0000‌
(b)
0.0021‌
0.0117‌
Net
realized
gain
........................................................................
0.0000‌
(b)
0.0001‌
0.0000‌
(b)
Net
increase
from
investment
operations
..........................................................
0.0000‌
0.0022‌
0.0117‌
Distributions
(c)
-
-
-
From
net
investment
income
................................................................
(0.0000‌)
(d)
(0.0021‌)
(0.0117‌)
From
net
realized
gain
.....................................................................
-‌
(0.0001‌)
(0.0000‌)
(d)
Total
distributions
.........................................................................
(0.0000‌)
(0.0022‌)
(0.0117‌)
Net
asset
value,
end
of
period
................................................................
$
1.00‌
$
1.00‌
$
1.00‌
Total
Return
(e)
-
0.22%
1.18%
Based
on
net
asset
value
....................................................................
0.00%
(f)(g)
0.22%
1.18%
(f)
Ratios
to
Average
Net
Assets
Total
expenses
...........................................................................
0.61%
(h)
0.58%
0.70%
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..................................................
0.18%
(h)
0.20%
0.20%
(h)
Net
investment
income
.....................................................................
0.00%
(g)(h)
0.21%
1.75%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
................................................................
$
37‌
$
37‌
$
37‌
(a)
Commencement
of
operations.
(b)
Amount
is
less
than
$0.00005
per
share.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Amount
is
greater
than
$(0.00005)
per
share.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Aggregate
total
return.
(g)
Amount
is
less
than
0.005%.
(h)
Annualized.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
15
Financial
Highlights
See
notes
to
financial
statements.
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Service
Six
Months
Ended
09/30/21
(unaudited)
Year
Ended
March
31,
2021
2020
2019
2018
2017
Net
asset
value,
beginning
of
period
...............
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
Net
investment
income
........................
0.0000‌
(a)
0.0009‌
0.0165‌
0.0185‌
0.0092‌
0.0009‌
Net
realized
gain
............................
0.0000‌
(a)
0.0001‌
0.0000‌
(a)
0.0000‌
(a)
0.0001‌
0.0024‌
Net
increase
from
investment
operations
..............
0.0000‌
0.0010‌
0.0165‌
0.0185‌
0.0093‌
0.0033‌
Distributions
(b)
-
-
-
-
-
-
From
net
investment
income
....................
(0.0000‌)
(c)
(0.0009‌)
(0.0165‌)
(0.0185‌)
(0.0093‌)
(0.0009‌)
From
net
realized
gain
.........................
-‌
(0.0001‌)
(0.0000‌)
(c)
(0.0000‌)
(c)
-‌
(0.0024‌)
Total
distributions
.............................
(0.0000‌)
(0.0010‌)
(0.0165‌)
(0.0185‌)
(0.0093‌)
(0.0033‌)
Net
asset
value,
end
of
period
....................
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
Total
Return
(d)
-
0.10%
1.66%
1.87%
-
-
Based
on
net
asset
value
........................
0.00%
(e)(f)
0.10%
1.66%
1.87%
0.93%
0.33%
Ratios
to
Average
Net
Assets
Total
expenses
...............................
0.78%
(g)
0.78%
0.84%
0.83%
0.86%
0.89%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.18%
(g)
0.25%
0.50%
0.47%
0.50%
0.50%
Net
investment
income
.........................
0.00%
(f)(g)
0.04%
1.65%
1.87%
0.92%
0.09%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
28,177‌
$
45,926‌
$
5,692‌
$
6,152‌
$
5,655‌
$
6,191‌
(a)
Amount
is
less
than
$0.00005
per
share.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.00005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Aggregate
total
return.
(f)
Amount
is
less
than
0.005%.
(g)
Annualized.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
16
See
notes
to
financial
statements.
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Investor
A
Six
Months
Ended
09/30/21
(unaudited)
Year
Ended
March
31,
2021
2020
2019
2018
2017
Net
asset
value,
beginning
of
period
...............
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
Net
investment
income
........................
0.0000‌
(a)
0.0009‌
0.0164‌
0.0178‌
0.0090‌
0.0025‌
Net
realized
gain
(loss)
........................
0.0000‌
(a)
0.0001‌
0.0000‌
(a)
0.0000‌
(a)
(0.0002‌)
0.0003‌
Net
increase
from
investment
operations
..............
0.0000‌
0.0010‌
0.0164‌
0.0178‌
0.0088‌
0.0028‌
Distributions
(b)
-
-
-
-
-
-
From
net
investment
income
....................
(0.0000‌)
(c)
(0.0009‌)
(0.0164‌)
(0.0178‌)
(0.0088‌)
(0.0025‌)
From
net
realized
gain
.........................
-‌
(0.0001‌)
(0.0000‌)
(c)
(0.0000‌)
(c)
-‌
(0.0003‌)
Total
distributions
.............................
(0.0000‌)
(0.0010‌)
(0.0164‌)
(0.0178‌)
(0.0088‌)
(0.0028‌)
Net
asset
value,
end
of
period
....................
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
Total
Return
(d)
-
0.10%
1.66%
1.80%
-
-
Based
on
net
asset
value
........................
0.00%
(e)(f)
0.10%
1.66%
1.80%
0.88%
0.28%
Ratios
to
Average
Net
Assets
Total
expenses
...............................
0.79%
(g)
0.78%
0.81%
0.90%
0.91%
0.97%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.18%
(g)
0.34%
0.50%
0.54%
0.54%
0.55%
Net
investment
income
.........................
0.00%
(f)(g)
0.10%
1.45%
1.85%
0.90%
0.25%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
1,242,193‌
$
1,677,581‌
$
2,616,196‌
$
484,301‌
$
180,873‌
$
122,896‌
(a)
Amount
is
less
than
$0.00005
per
share.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.00005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Aggregate
total
return.
(f)
Amount
is
less
than
0.005%.
(g)
Annualized.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
17
Financial
Highlights
See
notes
to
financial
statements.
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Investor
C
Six
Months
Ended
09/30/21
(unaudited)
Year
Ended
March
31,
2021
2020
2019
2018
2017
Net
asset
value,
beginning
of
period
...............
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
Net
investment
income
........................
0.0000‌
(a)
0.0008‌
0.0086‌
0.0105‌
0.0017‌
0.0009‌
Net
realized
gain
............................
0.0000‌
(a)
0.0001‌
0.0000‌
(a)
0.0000‌
(a)
0.0001‌
0.0001‌
Net
increase
from
investment
operations
..............
0.0000‌
0.0009‌
0.0086‌
0.0105‌
0.0018‌
0.0010‌
Distributions
(b)
-
-
-
-
-
-
From
net
investment
income
....................
(0.0000‌)
(c)
(0.0008‌)
(0.0086‌)
(0.0105‌)
(0.0018‌)
(0.0009‌)
From
net
realized
gain
.........................
-‌
(0.0001‌)
(0.0000‌)
(c)
(0.0000‌)
(c)
-‌
(0.0001‌)
Total
distributions
.............................
(0.0000‌)
(0.0009‌)
(0.0086‌)
(0.0105‌)
(0.0018‌)
(0.0010‌)
Net
asset
value,
end
of
period
....................
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
$
1.00‌
Total
Return
(d)
-
0.08%
0.87%
1.05%
-
-
Based
on
net
asset
value
........................
0.00%
(e)(f)
0.08%
0.87%
1.05%
0.18%
0.10%
Ratios
to
Average
Net
Assets
Total
expenses
...............................
1.59%
(g)
1.54%
1.62%
1.64%
1.65%
1.62%
Total
expenses
after
fees
waived
and/or
reimbursed
......
0.18%
(g)
0.35%
1.28%
1.28%
1.24%
0.71%
Net
investment
income
.........................
0.00%
(f)(g)
0.09%
0.85%
1.07%
0.17%
0.09%
Supplemental
Data
Net
assets,
end
of
period
(000)
....................
$
12,234‌
$
15,347‌
$
29,973‌
$
15,174‌
$
21,727‌
$
26,434‌
(a)
Amount
is
less
than
$0.00005
per
share.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.00005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Aggregate
total
return.
(f)
Amount
is
less
than
0.005%.
(g)
Annualized.
Notes
to
Financial
Statements
(unaudited)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
18
1.
ORGANIZATION
BlackRock
Funds
SM
(the
"Trust")
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"1940
Act"),
as
an
open-end
management
investment
company.
The Trust
is
organized
as
a
Massachusetts
business
trust.
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
(the
"Fund")
is
a
series
of
the
Trust.
The
Fund
is
classified
as
diversified.
The
Fund
offers
multiple
classes
of
shares.
All
classes
of
shares
have
identical
voting,
dividend,
liquidation
and
other
rights
and
are
subject
to
the
same
terms
and
conditions,
except
that
certain
classes
bear
expenses
related
to
the
shareholder
servicing
and
distribution
of
such
shares.
Institutional
and
Service
Shares
are
sold
without
a
sales
charge
and
only
to
certain
eligible
investors.
Premier
Shares
are
sold
without
a
sales
charge
and
are
only
available
through
financial
intermediaries
trading
on
the
NSCC
Fund/SERV
trading
platform.
Service,
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
Shares
are
generally
available
through
financial
intermediaries.
Investor
C
Shares
are
available
only
through
exchanges
and
dividend
and
capital
gain
reinvestments
by
current
holders.
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).
(a)
Premier
Shares
commenced
operations
on
July
26,
2019.
(b)
Investor
A
Shares
may
be
subject
to
a
CDSC
upon
redemption
of
shares
received
in
an
exchange
transaction
for
Investor A
Shares
of
a
fund
advised
by
the
Manager
(defined
below)
or
its
affiliates
(each,
a
"BlackRock
Fund")
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase
of
such
fund.
Investor C
Shares
may
be
subject
to
a
CDSC
upon
redemption
of
shares
received
in
an
exchange
transaction
for
Investor C
Shares
of
a
non-money
market
BlackRock
Fund.
The
Fund
operates
as
a
"retail
money
market
fund"
under
Rule
2a-7
under
the
1940
Act.
The
Board
of
Trustees
of
the
Trust (the
"Board")
is
permitted
to
impose
a
liquidity
fee
of
up
to
2%
of
the
value
of
shares
redeemed
or
temporarily
restrict
redemptions
from
the
Fund
for
up
to
10
business
days
during
a
90
day
period,
in
the
event
that
the
Fund's
weekly
liquid
assets
fall
below
certain
thresholds.
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
equity,
multi-asset,
index
and
money
market
funds
referred
to
as
the
BlackRock
Multi-Asset
Complex.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
("U.S.
GAAP"),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies:
Investment
Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities,
is
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets.
Distributions:
Distributions
from
net
investment
income
are
declared
daily
and
paid
monthly.
Distributions
of
capital
gains
are
distributed
at
least
annually
and
are
recorded
on
the
ex-dividend
dates.
The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP
.
Liquidity
Fees:
Any
liquidity
fees
imposed
on
the
value
of
shares
redeemed
in
the
event
that
the
Fund's
weekly
liquid
assets
fall
below
certain
thresholds
are
recorded
as
paid-in-capital.
The
liquidity
fees
are
collected
and
retained
by
the
Fund
for
the
benefit
of the
Fund's
remaining
interest
holders.
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.
The
Fund
has
an
arrangement
with
its
custodian
whereby
credits
are
earned
on
uninvested
cash
balances,
which
could
be
used
to
reduce
custody
fees
and/or
overdraft
charges.
The
Fund
may
incur
charges
on
overdrafts,
subject
to
certain
conditions.
Share
Class
Initial
Sales
Charge
Contingent
Deferred
Sales
Charge
("CDSC")
Conversion
Privilege
Institutional
and
Service
Shares
.....................................
No
No
None
Premier
Shares
(a)
..............................................
No
No
None
Investor
A
Shares
..............................................
No
No
(b)
None
Investor
C
Shares
.............................................
No
No
(b)
To
Investor
A
Shares
after
approximately
8
years
Notes
to
Financial
Statements
(unaudited)
(continued)
19
Notes
to
Financial
Statements
3.
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS
Investment
Valuation
Policies:
U.S.
GAAP
defines
fair
value
as
the
price
the
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
Fund's
investments
are
valued
under
the
amortized
cost
method
which
approximates
current
market
value
in
accordance
with
Rule
2a-7
under
the
1940
Act.
Under
this
method,
investments
are
valued
at
cost
when
purchased
and,
thereafter,
a
constant
proportionate
accretion
of
discounts
and
amortization
of
premiums
are
recorded
until
the
maturity
of
the
security.
The
Fund
seeks
to
maintain
its
net
asset
value
("NAV")
per
share
at
$1.00,
although
there
is
no
assurance
that
it
will
be
able
to
do
so
on
a
continuing
basis.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
the
Fund's
assets
and
liabilities:
Fixed-income investments
for
which
market
quotations
are
readily
available
are
generally
valued
using
the
last
available
bid
price
or
current
market
quotations
provided
by
independent
dealers
or
third-party
pricing
services.
Pricing
services
generally
value
fixed-income
securities
assuming
orderly
transactions
of
an
institutional
round
lot
size,
but
a
fund
may
hold
or
transact
in
such
securities
in
smaller,
odd
lot
sizes.
Odd
lots
may
trade
at
lower
prices
than
institutional
round
lots.
The
pricing
services
may
use
matrix
pricing
or
valuation
models
that
utilize
certain
inputs
and
assumptions
to
derive
values,
including
transaction
data
(e.g.,
recent
representative
bids
and
offers),
market
data, credit
quality
information,
perceived
market
movements,
news,
and
other
relevant
information.
Certain
fixed-income
securities,
including
asset-
backed
and
mortgage
related
securities
may
be
valued
based
on
valuation
models
that
consider
the
estimated
cash
flows
of
each
tranche
of
the
entity,
establish
a
benchmark
yield
and
develop
an
estimated
tranche
specific
spread
to
the
benchmark
yield
based
on
the
unique
attributes
of
the
tranche.
The
amortized
cost
method
of
valuation
may
be
used
with
respect
to
debt
obligations
with
sixty
days
or
less
remaining
to
maturity
unless
the
Manager
determines
such
method
does
not
represent
fair
value.
Repurchase
agreements
are
valued
at
amortized
cost,
which
approximates
market
value.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows:
Level
1
-
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
the
Fund
has
the
ability
to
access;
Level
2
-
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market-corroborated
inputs);
and
Level
3 -
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available
(including
the
Global
Valuation
Committee's assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety. The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
4.
SECURITIES
AND
OTHER
INVESTMENTS
Repurchase
Agreements:
Repurchase
agreements
are
commitments
to
purchase
a
security
from
a
counterparty
who
agrees
to
repurchase
the
same
security
at
a
mutually
agreed
upon
date
and
price.
On
a
daily
basis,
the
counterparty
is
required
to
maintain
collateral
subject
to
the
agreement
and
in
value
no
less
than
the
agreed
upon
repurchase
amount.
Repurchase
agreements
may
be
traded
bilaterally,
in
a
tri
party
arrangement
or
may
be
centrally
cleared
through
a
sponsoring
agent.
Subject
to
the
custodial
undertaking
associated
with
a
tri-party
repurchase
arrangement
and
for
centrally
cleared
repurchase
agreements,
a
third-party
custodian
maintains
accounts
to
hold
collateral
for a
fund
and
its
counterparties.
Typically,
a
fund
and
counterparty
are
not
permitted
to
sell,
re-pledge
or
use
the
collateral
absent
a
default
by
the
counterparty
or the
fund,
respectively.
In
the
event
the
counterparty
defaults
and
the
fair
value
of
the
collateral
declines, a
fund
could
experience
losses,
delays
and
costs
in
liquidating
the
collateral.
Repurchase
agreements
are
entered
into
by a
fund
under
Master
Repurchase
Agreements
(each,
an
"MRA").
The
MRA
permits the
fund,
under
certain
circumstances
including
an
event
of
default
(such
as
bankruptcy
or
insolvency),
to
offset
payables
and/or
receivables
with
collateral
held
by
and/or
posted
to
the
counterparty.
As
a
result,
one
single
net
payment
is
created.
Bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
such
a
right
of
offset
in
the
event
of
the
MRA
counterparty's
bankruptcy
or
insolvency.
Based
on
the
terms
of
the
MRA, the
fund
receives
collateral
with
a
market
value
in
excess
of
the
repurchase
price
at
maturity.
Upon
a
bankruptcy
or
insolvency
of
the
MRA
counterparty,
the
fund
would
recognize
a
liability
with
respect
to
such
excess
collateral.
The
liability
reflects
the
fund's
obligation
under
bankruptcy
law
to
return
the
excess
to
the
counterparty.
5.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES
Investment
Advisory:
The
Trust,
on
behalf
of
the
Fund,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Fund's
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
("BlackRock")
,
to
provide
investment
advisory
services.
The
Manager
is
responsible
for
the
management
of the
Fund's
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of the
Fund.
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
20
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
and
Distribution
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
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
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 six
months
ended
September
30,
2021,
the
following
table
shows
the
class
specific
service
and
distribution
fees
borne
directly
by
each
share
class
of
the
Fund:
Administration:
The
Trust
,
on behalf
of
the
Fund,
entered
into
a
Administration
Agreement
with
the
Manager,
and
indirect,
wholly-owned
subsidiary
of
BlackRock,
to
provide
administrative
services.
For
these
services,
the
Manager
receives
an
administration
fee
computed
daily
and
payable
monthly,
based
on
a
percentage
of
the
average
daily
net
assets
of
the
Fund.
The
administration
fee,
which
is
shown
as
administration
in
the
Statement
of
Operations,
is
paid
at
the
annual
rates
below:
In
addition,
the
Manager
charges
each
of
the
share
classes
an
administration
fee,
which
is
shown
as
administration -
class
specific
in
the
Statement
of
Operations,
at
an
annual
rate
of
0.02% of
the
average
daily
net
assets
of
each
respective
class.
For
the
six
months
ended
September
30,
2021, the
following
table
shows
the
class
specific
administration
fees
borne
directly
by
each
share
class
of
the
Fund:
Transfer
Agent:
Pursuant
to
written
agreements,
certain
financial
intermediaries,
some
of
which
may
be
affiliates,
provide
the
Fund
with
sub-accounting,
recordkeeping,
sub-transfer
agency
and
other
administrative
services
with
respect
to
servicing
of
underlying
investor
accounts.
For
these
services,
these
entities
receive
an
asset-based
fee
or
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets.
For
the
six
months ended September
30,
2021,
the
Fund
paid
the
following
amounts
to
affiliates
of
BlackRock
in
return
for
these
services,
which
are
included
in
transfer
agent
-
class
specific
in
the
Statement
of
Operations:
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
Billion
.........................................................................................................
0.450
%
$1
Billion
-
$2
Billion
.....................................................................................................
0.400
$2
Billion
-
$3
Billion
....................................................................................................
0.375
Greater
than
$3
Billion
...................................................................................................
0.350
Service
Fees
Distribution
Fees
Service
..................................................................................................
0.25‌%
-‌%
Investor
A
.................................................................................................
0.25‌
-‌
Investor
C
.................................................................................................
0.25‌
0.75‌
Service
and
Distribution
Fees
Service
.........................................................................................................
$
44,174‌
Investor
A
........................................................................................................
1,802,657‌
Investor
C
........................................................................................................
69,263‌
$
1,916,094‌
Average
Daily
Net
Assets
Administration
Fees
First
$500
Million
0.0425
%
$500
Million
-
$1
Billion
0.0400
$1
Billion
-
$2
Billion
0.0375
$2
Billion
-
$4
Billion
0.0350
$4
Billion
-
$13
Billion
0.0325
Greater
than
$13
Billion
0.0300
Institutional
.......................................................................................................
$
36,675‌
Premier
.........................................................................................................
4‌
Service
.........................................................................................................
3,533‌
Investor
A
........................................................................................................
144,201‌
Investor
C
........................................................................................................
1,385‌
$
185,798‌
Institutional
.............................................................................................................
$
1,184‌
Investor
A
..............................................................................................................
68
0‌
$
1
,
864‌
Notes
to
Financial
Statements
(unaudited)
(continued)
21
Notes
to
Financial
Statements
The
Manager
maintains
a
call
center
that
is
responsible
for
providing
certain
shareholder
services
to
the
Fund.
Shareholder
services
include
responding
to
inquiries
and
processing
purchases
and
sales
based
upon
instructions
from
shareholders.
For
the six
months
ended
September
30,
2021,
the
Fund
did
not
reimburse
the
Manager
any
amounts
in
return
for
these
services.
For
the
six
months ended
September
30,
2021,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Other
Fees:
For
the
six
months
ended
September
30,
2021
,
affiliates
received
CDSCs
as
follows:
Expense
Limitations,
Waivers
and
Reimbursements:
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,
2023,
unless
approved
by
the
Board,
including
a
majority
of
the trustees who
are
not
"interested
persons"
of
the
Trust,
as
defined
in
the
1940
Act
("Independent
Trustees"),
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of the
Fund. For
the
six
months
ended
September
30,
2021,
the
Manager
waived
and/or
reimbursed
investment
advisory
fees
of
$2,786,022,
which
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
In
addition,
these
amounts
waived
and/or
reimbursed
by
the
Manager are
included
in administration
fees
waived
-
class
specific
and
transfer
agent
fees
waived
and/
or
reimbursed
-
class
specific,
respectively,
in
the
Statement
of
Operations.
For
the
six
months ended
September
30,
2021,
class
specific
expense
waivers
and/or
reimbursements are
as
follows:
The
Manager
and
BRIL
have
also
voluntarily
agreed
to
waive
a
portion
of
their
respective
investment
advisory
and
service
and
distribution
fees
and/or
reimburse
operating
expenses
to
enable
the
Fund
to
maintain
minimum
levels
of
daily
net
investment
income
if
applicable.
These
amounts,
if
any,
are
reported
in
the
Statement
of
Operations
as
fees
waived
and/or
reimbursed
by
the
Manager,
administration
fees
waived
-
class
specific,
service
and
distribution
fees
waived
and/or
reimbursed -
class
specific
and
transfer
agent
fees
waived
and/or
reimbursed
-
class
specific.
The
Manager
and
BRIL
may
discontinue
the
waiver
and/or
reimbursement
at
any
time.
For
the
six
months ended
September
30,
2021,
there
were
$2,430,292 waived
and/or
reimbursed
by
the
Manager
and
BRIL
under
this
agreement.
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.
Other
Transactions:
The
Fund
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
six
months ended
September
30,
2021,
the
purchase
and
sale
transactions
and
any
net
realized
gains
(losses)
with
affiliated
fund
s
in
compliance
with
Rule
17a-7
under
the
1940
Act
were
as
follows:
Institutional
.......................................................................................................
$
12,441‌
Premier
.........................................................................................................
17‌
Service
.........................................................................................................
1,166‌
Investor
A
........................................................................................................
165,537‌
Investor
C
........................................................................................................
4,801‌
$
183,962‌
Investor
A
$
26,780‌
Investor
C
268‌
Institutional
..........................................................................................................
0.20‌%
Premier
............................................................................................................
0.20‌
Service
............................................................................................................
0.50‌
Investor
A
...........................................................................................................
0.55‌
Investor
C
...........................................................................................................
1.30‌
Fund
Name/Share
Class
Administration
Fees
Waived
Transfer
Agent
Fees
Waived
and/or
Reimbursed
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Institutional
....................................................................................
$
36,675‌
$
12,
289‌
Premier
......................................................................................
4‌
16‌
Service
......................................................................................
-‌
-‌
Investor
A
.....................................................................................
-‌
-‌
Investor
C
.....................................................................................
-‌
-‌
$
36,679‌
$
12,3
05‌
Purchases
...............................................................................................................
$
-‌
Sales
...................................................................................................................
24,992,649‌
Net
Realized
Gain
(Loss)
.....................................................................................................
-‌
Notes
to
Financial
Statements
(unaudited)
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
22
6.
INCOME
TAX
INFORMATION
It
is
the
Fund's
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required.
The
Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
the
Fund's
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
fiscal
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
September
30,
2021,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Fund's
financial
statements.
7.
PRINCIPAL
RISKS
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Fund
and its
investments.
The
Fund's
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject.
Certain
obligations
held
by
the
Fund
have
a
credit
enhancement
or
liquidity
feature
that
may,
under
certain
circumstances,
provide
for
repayment
of
principal
and
interest
on
the
obligation
when
due. These
enhancements,
which
may
include
letters
of
credit,
stand-by
bond
purchase
agreements
and/or
third-party
insurance,
are
issued
by
financial
institutions. The
value
of
the
obligations
may
be
affected
by
changes
in
creditworthiness
of
the
entities
that
provide
the
credit
enhancements
or
liquidity
features. The
Fund
monitors
its
exposure
by
reviewing
the
creditworthiness
of
the
issuers,
as
well
as
the
financial
institutions
issuing
the
credit
enhancements
and
by
limiting
the
amount
of
holdings
with
credit
enhancements
from
one
financial
institution.
Market
Risk:
Municipal
securities
are
subject
to
the
risk
that
litigation,
legislation
or
other
political
events,
local
business
or
economic
conditions,
credit
rating
downgrades,
or
the
bankruptcy
of
the
issuer
could
have
a
significant
effect
on
an
issuer's
ability
to
make
payments
of
principal
and/or
interest
or
otherwise
affect
the
value
of
such
securities.
Municipal
securities
can
be
significantly
affected
by
political
or
economic
changes,
including
changes
made
in
the
law
after
issuance
of
the
securities,
as
well
as
uncertainties
in
the
municipal
market
related
to,
taxation,
legislative
changes
or
the
rights
of
municipal
security
holders,
including
in
connection
with
an
issuer
insolvency.
Municipal
securities
backed
by
current
or
anticipated
revenues
from
a
specific
project
or
specific
assets
can
be
negatively
affected
by
the
discontinuance
of
the
tax
benefits
supporting
the
project
or
assets
or
the
inability
to
collect
revenues
for
the
project
or
from
the
assets.
Municipal
securities
may
be
less
liquid
than
taxable
bonds,
and
there
may
be
less
publicly
available
information
on
the
financial
condition
of
municipal
security
issuers
than
for
issuers
of
other
securities.
An
outbreak
of
respiratory
disease
caused
by
a
novel
coronavirus
has
developed
into
a
global
pandemic
and
has
resulted
in
closing
borders,
quarantines,
disruptions
to
supply
chains
and
customer
activity,
as
well
as
general
concern
and
uncertainty.
The
impact
of
this
pandemic,
and
other
global
health
crises
that
may
arise
in
the
future,
could
affect
the
economies
of
many
nations,
individual
companies
and
the
market
in
general
in
ways
that
cannot
necessarily
be
foreseen
at
the
present
time.
This
pandemic
may
result
in
substantial
market
volatility
and
may
adversely
impact
the
prices
and
liquidity
of
a
fund's
investments.
The duration
of
this
pandemic
and
its
effects
cannot
be
determined
with
certainty.
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.
Concentration
Risk:
A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund's
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
the
Fund's
portfolio
are
disclosed
in
its Schedule
of
Investments.
The
Fund
invests
a
significant
portion
of
its
assets
in
fixed-income
securities
and/or
uses
derivatives
tied
to
the
fixed-income
markets.
Changes
in
market
interest
rates
or
economic
conditions
may
affect
the
value
and/or
liquidity
of
such
investments.
Interest
rate
risk
is
the
risk
that
prices
of
bonds
and
other
fixed-income
securities
will
increase
as
interest
rates
fall
and
decrease
as
interest
rates
rise.
The
Funds
may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the
current
period
of
historically
low
rates.
The
Fund
invests
a
significant
portion
of
its
assets
in
securities
of
issuers
located
in
Europe
or
with
significant
exposure
to
European
issuers
or
countries.
The
European
financial
markets
have
recently
experienced
volatility
and
adverse
trends
due
to
concerns
about
economic
downturns
in,
or
rising
government
debt
levels
of,
several
European
countries.
These
events
may
spread
to
other
countries
in
Europe
and
may
affect
the
value
and
liquidity
of
certain
of
the
Fund's
investments.
Responses
to
the
financial
problems
by
European
governments,
central
banks
and
others,
including
austerity
measures
and
reforms,
may
not
work,
may
result
in
social
unrest
and
may
limit
future
growth
and
economic
recovery
or
have
other
unintended
consequences.
Further
defaults
or
restructurings
by
governments
and
others
of
their
debt
could
have
additional
adverse
effects
on
economies,
financial
markets
and
asset
valuations
around
the
world.
In
addition,
the
United
Kingdom
has
withdrawn
from
the
European
Union,
and
one
or
more
other
countries
may
withdraw
from
the
European
Union
and/or
abandon
the
Euro,
the
common
currency
of
the
European
Union.
The
impact
of
these
actions,
especially
if
they
occur
in
a
disorderly
fashion,
is
not
clear
but
could
be
significant
and
far
reaching.
Notes
to
Financial
Statements
(unaudited)
(continued)
23
Notes
to
Financial
Statements
LIBOR
Transition
Risk:
The
United
Kingdom's
Financial
Conduct
Authority
announced
a phase
out of
the
London
Interbank
Offered
Rate
("LIBOR").
Although
many
LIBOR
rates
will
be
phased
out
by
the
end
of
2021,
a
selection
of
widely
used
USD
LIBOR
rates
will
continue
to
be
published
through
June
2023
in
order
to
assist
with
the
transition.
The
Fund
may
be
exposed
to
financial
instruments
tied
to
LIBOR
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
transition
process
away
from
LIBOR
might
lead
to
increased
volatility
and
illiquidity
in
markets
for,
and
reduce
the
effectiveness
of
new
hedges
placed
against,
instruments
whose
terms
currently
include
LIBOR.
The
ultimate
effect
of
the
LIBOR
transition
process
on
the
Fund
is
uncertain.
8.
CAPITAL
SHARE
TRANSACTIONS
The
number
of
shares
sold,
reinvested
and
redeemed
corresponds
to
the
net
proceeds
from
the
sale
of
shares,
reinvestment
of
all
distributions
and
cost
of
shares
redeemed,
respectively,
since
shares
are
sold
and
redeemed
at
$1.00
per
share.
As
of
September
30,
2021,
BlackRock
Financial
Management,
Inc.,
an
affiliate
of
the
Fund,
owned
36,744
Premier
Shares
of
the
Fund.
9.
SUBSEQUENT
EVENTS
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Fund
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
d
Fund
Name
/Share
Class
Six
Months
Ended
09/30/21
Year
Ended
03/31/21
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
Institutional
Shares
sold
236,168,879‌
1,170,723,442‌
Shares
issued
in
reinvestment
of
distributions
........................................................
6,460‌
438,340‌
Shares
redeemed
(486,737,579‌)
(1,017,040,963‌)
(250,562,240‌)
154,120,819‌
Premier
Shares
sold
-‌
-‌
Shares
issued
in
reinvestment
of
distributions
........................................................
-‌
-‌
Shares
redeemed
-‌
-‌
-‌
-‌
Service
Shares
sold
5,580,379‌
72,032,686‌
Shares
issued
in
reinvestment
of
distributions
........................................................
678‌
15,339‌
Shares
redeemed
(23,330,331‌)
(31,815,664‌)
(17,749,274‌)
40,232,361‌
Investor
A
Shares
sold
and
automatic
conversion
of
shares
69,064,732‌
1,380,124,647‌
Shares
issued
in
reinvestment
of
distributions
........................................................
28,355‌
2,512,348‌
Shares
redeemed
(504,493,307‌)
(2,321,296,419‌)
(435,400,220‌)
(938,659,424‌)
Investor
C
Shares
sold
4,230,989‌
22,616,645‌
Shares
issued
in
reinvestment
of
distributions
........................................................
257‌
20,363‌
Shares
redeemed
and
automatic
conversion
of
shares
(7,344,393‌)
(37,263,517‌)
(3,113,147‌)
(14,626,509‌)
(706,824,881‌)
(758,932,753‌)
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
2021
BlackRock
Semi-Annual
Report
to
Shareholders
24
The
Board
of
Trustees
(the
"Board,"
the
members
of
which
are
referred
to
as
"Board
Members")
of
BlackRock
Funds
(the
"Trust")
met
on
April
7,
2021
(the
"April
Meeting")
and
May
10-12,
2021
(the
"May
Meeting")
to
consider
the
approval
to
continue
the
investment
advisory
agreement
(the
"Advisory
Agreement")
between
the
Trust,
on
behalf
of
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund
(the
"Fund"),
and
BlackRock
Advisors,
LLC
(the
"Manager"),
the
Fund's
investment
advisor.
The
Board
also
considered
the
approval
of
the
sub-advisory
agreement
(the
"Sub-Advisory
Agreement")
between
the
Manager
and
BlackRock
International
Limited
(the
"Sub-Advisor")
with
respect
to
the
Fund.
The
Manager
and
the
Sub-Advisor
are
referred
to
herein
as
"BlackRock."
The
Advisory
Agreement
and
the
Sub-Advisory
Agreement
are
referred
to
herein
as
the
"Agreements."
The
Approval
Process
Consistent
with
the
requirements
of
the
Investment
Company
Act
of
1940
(the
"1940
Act"),
the
Board
considers
the
approval
of
the
continuation
of
the
Agreements
for
the
Fund
on
an
annual
basis.
The
Board
members
whom
are
not
"interested
persons"
of
the
Trust,
as
defined
in
the
1940
Act,
are
considered
independent
Board
members
(the
"Independent
Board
Members").
The
Board's
consideration
entailed
a
year-long
deliberative
process
during
which
the
Board
and
its
committees
assessed
BlackRock's
various
services
to
the
Fund,
including
through
the
review
of
written
materials
and
oral
presentations,
and
the
review
of
additional
information
provided
in
response
to
requests
from
the
Independent
Board
Members.
The
Board
had
four
quarterly
meetings
per
year,
each
typically
extending
for
two
days,
as
well
as
additional
ad
hoc
meetings
and
executive
sessions
throughout
the
year,
as
needed.
The
committees
of
the
Board
similarly
met
throughout
the
year.
The
Board
also
had
a
fifth
one-day
meeting
to
consider
specific
information
surrounding
the
renewal
of
the
Agreements.
In
particular,
the
Board
assessed,
among
other
things,
the
nature,
extent
and
quality
of
the
services
provided
to
the
Fund
by
BlackRock,
BlackRock's
personnel
and
affiliates,
including
(as
applicable):
investment
management
services;
accounting
oversight;
administrative
and
shareholder
services;
oversight
of
the
Fund's
service
providers;
risk
management
and
oversight;
and
legal,
regulatory
and
compliance
services.
Throughout
the
year,
including
during
the
contract
renewal
process,
the
Independent
Board
Members
were
advised
by
independent
legal
counsel,
and
met
with
independent
legal
counsel
in
various
executive
sessions
outside
of
the
presence
of
BlackRock's
management.
During
the
year,
the
Board,
acting
directly
and
through
its
committees,
considered
information
that
was
relevant
to
its
annual
consideration
of
the
renewal
of
the
Agreements,
including
the
services
and
support
provided
by
BlackRock
to
the
Fund
and
its
shareholders.
BlackRock
also
furnished
additional
information
to
the
Board
in
response
to
specific
questions
from
the
Board.
Among
the
matters
the
Board
considered
were:
(a)
investment
performance
for
one-year,
three-year,
five-year,
and/or
since
inception
periods,
as
applicable,
against
peer
funds,
relevant
benchmarks,
and
other
performance
metrics,
as
applicable,
as
well
as
BlackRock
senior
management's
and
portfolio
managers'
analyses
of
the
reasons
for
any
outperformance
or
underperformance
relative
to
its
peers,
benchmarks,
and
other
performance
metrics,
as
applicable;
(b)
fees,
including
advisory,
administration,
if
applicable,
and
other
amounts
paid
to
BlackRock
and
its
affiliates
by
the
Fund
for
services;
(c)
Fund
operating
expenses
and
how
BlackRock
allocates
expenses
to
the
Fund;
(d)
the
resources
devoted
to,
risk
oversight
of,
and
compliance
reports
relating
to,
implementation
of
the
Fund's
investment
objective,
policies
and
restrictions,
and
meeting
regulatory
requirements;
(e)
BlackRock's
and
the
Fund's
adherence
to
applicable
compliance
policies
and
procedures;
(f)
the
nature,
character
and
scope
of
non-investment
management
services
provided
by
BlackRock
and
its
affiliates
and
the
estimated
cost
of
such
services,
as
available;
(g)
BlackRock's
and
other
service
providers'
internal
controls
and
risk
and
compliance
oversight
mechanisms;
(h)
BlackRock's
implementation
of
the
proxy
voting
policies
approved
by
the
Board;
(i)
execution
quality
of
portfolio
transactions;
(j)
BlackRock's
implementation
of
the
Fund's
valuation
and
liquidity
procedures;
(k)
an
analysis
of
management
fees
paid
to
BlackRock
for
products
with
similar
investment
mandates
across
the
open-end
fund,
exchange-traded
fund
("ETF"),
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable,
and
the
similarities
and
differences
between
these
products
and
the
services
provided
as
compared
to
the
Fund;
(l)
BlackRock's
compensation
methodology
for
its
investment
professionals
and
the
incentives
and
accountability
it
creates,
along
with
investment
professionals'
investments
in
the
fund(s)
they
manage;
and
(m)
periodic
updates
on
BlackRock's
business.
Prior
to
and
in
preparation
for
the
April
Meeting,
the
Board
received
and
reviewed
materials
specifically
relating
to
the
renewal
of
the
Agreements.
The
Independent
Board
Members
continuously
engaged
in
a
process
with
their
independent
legal
counsel
and
BlackRock
to
review
the
nature
and
scope
of
the
information
provided
to
the
Board
to
better
assist
its
deliberations.
The
materials
provided
in
connection
with
the
April
Meeting
included,
among
other
things:
(a)
information
independently
compiled
and
prepared
by
Broadridge
Financial
Solutions,
Inc.
("Broadridge"),
based
on
either
a
Lipper
classification
or
Morningstar
category,
regarding
the
Fund's
fees
and
expenses
as
compared
with
a
peer
group
of
funds
as
determined
by
Broadridge
("Expense
Peers")
and
the
investment
performance
of
the
Fund
as
compared
with
a
peer
group
of
funds
("Performance
Peers");
(b)
information
on
the
composition
of
the
Expense
Peers
and
Performance
Peers
and
a
description
of
Broadridge's
methodology;
(c)
information
on
the
estimated
profits
realized
by
BlackRock
and
its
affiliates
pursuant
to
the
Agreements
and
a
discussion
of
fall-out
benefits
to
BlackRock
and
its
affiliates;
(d)
a
general
analysis
provided
by
BlackRock
concerning
investment
management
fees
received
in
connection
with
other
types
of
investment
products,
such
as
institutional
accounts,
sub-advised
mutual
funds,
ETFs,
closed-end
funds,
open-end
funds,
and
separately
managed
accounts,
under
similar
investment
mandates,
as
well
as
the
performance
of
such
other
products,
as
applicable;
(e)
a
review
of
non-management
fees;
(f)
the
existence,
impact
and
sharing
of
potential
economies
of
scale,
if
any,
with
the
Fund;
(g)
a
summary
of
aggregate
amounts
paid
by
the
Fund
to
BlackRock;
(h)
sales
and
redemption
data
regarding
the
Fund's
shares;
and
(i)
various
additional
information
requested
by
the
Board
as
appropriate
regarding
BlackRock's
and
the
Fund's
operations.
At
the
April
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
Agreements.
As
a
result
of
the
discussions
that
occurred
during
the
April
Meeting,
and
as
a
culmination
of
the
Board's
year-long
deliberative
process,
the
Board
presented
BlackRock
with
questions
and
requests
for
additional
information.
BlackRock
responded
to
these
questions
and
requests
with
additional
written
information
in
advance
of
the
May
Meeting.
At
the
May
Meeting,
the
Board
concluded
its
assessment
of,
among
other
things:
(a)
the
nature,
extent
and
quality
of
the
services
provided
by
BlackRock;
(b)
the
investment
performance
of
the
Fund
as
compared
to
its
Performance
Peers
and
to
other
metrics,
as
applicable;
(c)
the
advisory
fee
and
the
estimated
cost
of
the
services
and
estimated
profits
realized
by
BlackRock
and
its
affiliates
from
their
relationship
with
the
Fund;
(d)
the
Fund's
fees
and
expenses
compared
to
its
Expense
Peers;
(e)
the
existence
and
sharing
of
potential
economies
of
scale;
(f)
any
fall-out
benefits
to
BlackRock
and
its
affiliates
as
a
result
of
BlackRock's
relationship
with
the
Fund;
and
(g)
other
factors
deemed
relevant
by
the
Board
Members.
The
Board
also
considered
other
matters
it
deemed
important
to
the
approval
process,
such
as
other
payments
made
to
BlackRock
or
its
affiliates
relating
to
securities
lending
and
cash
management,
and
BlackRock's
services
related
to
the
valuation
and
pricing
of
Fund
portfolio
holdings.
The
Board
noted
the
willingness
of
BlackRock's
personnel
to
engage
in
open,
candid
discussions
with
the
Board.
The
members
of
the
Board
gave
attention
to
all
of
the
information
that
was
furnished,
and
each
Board
Member
placed
varying
degrees
of
importance
on
the
various
pieces
of
information
that
were
provided
to
them.
The
Board
evaluated
the
information
available
to
it
on
a
fund
by
fund
basis.
The
following
paragraphs
provide
more
information
about
some
of
the
primary
factors
that
were
relevant
to
the
Board's
decision.
The
Board
Members
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
(continued)
25
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
did
not
identify
any
particular
information,
or
any
single
factor
as
determinative,
and
each
Board
Member
may
have
attributed
different
weights
to
the
various
items
and
factors
considered.
A.
Nature,
Extent
and
Quality
of
the
Services
Provided
by
BlackRock
The
Board,
including
the
Independent
Board
Members,
reviewed
the
nature,
extent
and
quality
of
services
provided
by
BlackRock,
including
the
investment
advisory
services,
and
the
resulting
performance
of
the
Fund.
Throughout
the
year,
the
Board
compared
Fund
performance
to
the
performance
of
a
comparable
group
of
mutual
funds,
relevant
benchmarks,
and
performance
metrics,
as
applicable.
The
Board
met
with
BlackRock's
senior
management
personnel
responsible
for
investment
activities,
including
the
senior
investment
officers.
The
Board
also
reviewed
the
materials
provided
by
the
Fund's
portfolio
management
team
discussing
the
Fund's
performance,
investment
strategies
and
outlook.
The
Board
considered,
among
other
factors,
with
respect
to
BlackRock:
the
number,
education
and
experience
of
investment
personnel
generally
and
the
Fund's
portfolio
management
team;
research
capabilities;
investments
by
portfolio
managers
in
the
funds
they
manage;
portfolio
trading
capabilities;
use
of
technology;
commitment
to
compliance;
credit
analysis
capabilities;
risk
analysis
and
oversight
capabilities;
and
the
approach
to
training
and
retaining
portfolio
managers
and
other
research,
advisory
and
management
personnel.
The
Board
also
considered
BlackRock's
overall
risk
management
program,
including
the
continued
efforts
of
BlackRock
and
its
affiliates
to
address
cybersecurity
risks
and
the
role
of
BlackRock's
Risk
&
Quantitative
Analysis
Group.
The
Board
engaged
in
a
review
of
BlackRock's
compensation
structure
with
respect
to
the
Fund's
portfolio
management
team
and
BlackRock's
ability
to
attract
and
retain
high-quality
talent
and
create
performance
incentives.
In
addition
to
investment
advisory
services,
the
Board
considered
the
nature
and
quality
of
the
administrative
and
other
non-investment
advisory
services
provided
to
the
Fund.
BlackRock
and
its
affiliates
provide
the
Fund
with
certain
administrative,
shareholder
and
other
services
(in
addition
to
any
such
services
provided
to
the
Fund
by
third
parties)
and
officers
and
other
personnel
as
are
necessary
for
the
operations
of
the
Fund.
In
particular,
BlackRock
and
its
affiliates
provide
the
Fund
with
administrative
services
including,
among
others:
(i)
responsibility
for
disclosure
documents,
such
as
the
prospectus,
the
summary
prospectus
(as
applicable),
the
statement
of
additional
information
and
periodic
shareholder
reports;
(ii)
oversight
of
daily
accounting
and
pricing;
(iii)
responsibility
for
periodic
filings
with
regulators;
(iv)
overseeing
and
coordinating
the
activities
of
third-party
service
providers
including,
among
others,
the
Fund's
custodian,
fund
accountant,
transfer
agent,
and
auditor;
(v)
organizing
Board
meetings
and
preparing
the
materials
for
such
Board
meetings;
(vi)
providing
legal
and
compliance
support;
(vii)
furnishing
analytical
and
other
support
to
assist
the
Board
in
its
consideration
of
strategic
issues
such
as
the
merger,
consolidation
or
repurposing
of
certain
open-end
funds;
and
(viii)
performing
or
managing
administrative
functions
necessary
for
the
operation
of
the
Fund,
such
as
tax
reporting,
expense
management,
fulfilling
regulatory
filing
requirements,
overseeing
the
Fund's
distribution
partners,
and
shareholder
call
center
and
other
services.
The
Board
reviewed
the
structure
and
duties
of
BlackRock's
fund
administration,
shareholder
services,
and
legal
and
compliance
departments
and
considered
BlackRock's
policies
and
procedures
for
assuring
compliance
with
applicable
laws
and
regulations.
The
Board
considered
the
operation
of
BlackRock's
business
continuity
plans,
including
in
light
of
the
ongoing
COVID-19
pandemic.
B.
The
Investment
Performance
of
the
Fund
and
BlackRock
The
Board,
including
the
Independent
Board
Members,
reviewed
and
considered
the
performance
history
of
the
Fund
throughout
the
year
and
at
the
April
Meeting.
In
preparation
for
the
April
Meeting,
the
Board
was
provided
with
reports
independently
prepared
by
Broadridge,
which
included
an
analysis
of
the
Fund's
performance
as
of
December
31,
2020,
as
compared
to
its
Performance
Peers.
Broadridge
ranks
funds
in
quartiles,
ranging
from
first
to
fourth,
where
first
is
the
most
desirable
quartile
position
and
fourth
is
the
least
desirable.
In
connection
with
its
review,
the
Board
received
and
reviewed
information
regarding
the
investment
performance
of
the
Fund
as
compared
to
its
Performance
Peers
and
a
weighted
average
benchmark
of
similar
funds,
as
defined
by
BlackRock
("Benchmark
Weighted
Average").
The
Board
and
its
Performance
Oversight
Committee
regularly
review
and
meet
with
Fund
management
to
discuss
the
performance
of
the
Fund
throughout
the
year.
In
evaluating
performance,
the
Board
focused
particular
attention
on
funds
with
less
favorable
performance
records.
The
Board
also
noted
that
while
it
found
the
data
provided
by
Broadridge
generally
useful,
it
recognized
the
limitations
of
such
data,
including
in
particular,
that
notable
differences
may
exist
between
a
fund
and
its
Performance
Peers
(for
example,
the
investment
objectives
and
strategies).
Further,
the
Board
recognized
that
the
performance
data
reflects
a
snapshot
of
a
period
as
of
a
particular
date
and
that
selecting
a
different
performance
period
could
produce
significantly
different
results.
The
Board
also
acknowledged
that
long-term
performance
could
be
impacted
by
even
one
period
of
significant
outperformance
or
underperformance,
and
that
a
single
investment
theme
could
have
the
ability
to
disproportionately
affect
long-term
performance.
The
Board
reviewed
the
Fund's
performance
within
the
context
of
the
low
yield
environment.
In
addition
to
reviewing
the
Fund's
performance
and
current
yield,
it
also
reviews
the
liquidity,
duration,
credit
quality
and
other
risk
factors
of
the
Fund's
portfolio.
The
Board
noted
that
for
the
one-
and
three-year
periods
reported,
the
Fund
outperformed
and
underperformed,
respectively,
its
Benchmark
Weighted
Average.
The
Board
noted
that
BlackRock
believes
that
the
Benchmark
Weighted
Average
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
and
BlackRock
reviewed
the
Fund's
underperformance
relative
to
its
Benchmark
Weighted
Average
during
the
applicable
period.
The
Board
noted
that
effective
May
11,
2020,
the
Fund
had
undergone
a
change
in
its
investment
objective
and
investment
strategy,
and
changed
its
name
from
BlackRock
Money
Market
Portfolio
to
BlackRock
Wealth
Liquid
Environmentally
Aware
Fund.
C.
Consideration
of
the
Advisory/Management
Fees
and
the
Estimated
Cost
of
the
Services
and
Estimated
Profits
Realized
by
BlackRock
and
its
Affiliates
from
their
Relationship
with
the
Fund
The
Board,
including
the
Independent
Board
Members,
reviewed
the
Fund's
contractual
management
fee
rate
compared
with
those
of
its
Expense
Peers.
The
contractual
management
fee
rate
represents
a
combination
of
the
advisory
fee
and
any
administrative
fees,
before
taking
into
account
any
reimbursements
or
fee
waivers.
The
Board
also
compared
the
Fund's
total
expense
ratio,
as
well
as
its
actual
management
fee
rate,
to
those
of
its
Expense
Peers.
The
total
expense
ratio
represents
a
fund's
total
net
operating
expenses,
including
any
12b-1
or
non-12b-1
service
fees.
The
total
expense
ratio
gives
effect
to
any
expense
reimbursements
or
fee
waivers,
and
the
actual
management
fee
rate
gives
effect
to
any
management
fee
reimbursements
or
waivers.
The
Board
considered
the
services
provided
and
the
fees
charged
by
BlackRock
and
its
affiliates
to
other
types
of
clients
with
similar
investment
mandates,
as
applicable,
including
institutional
accounts
and
sub-advised
mutual
funds
(including
mutual
funds
sponsored
by
third
parties).
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
26
The
Board
received
and
reviewed
statements
relating
to
BlackRock's
financial
condition.
The
Board
reviewed
BlackRock's
profitability
methodology
and
was
also
provided
with
an
estimated
profitability
analysis
that
detailed
the
revenues
earned
and
the
expenses
incurred
by
BlackRock
for
services
provided
to
the
Fund.
The
Board
reviewed
BlackRock's
estimated
profitability
with
respect
to
the
Fund
and
other
funds
the
Board
currently
oversees
for
the
year
ended
December
31,
2020
compared
to
available
aggregate
estimated
profitability
data
provided
for
the
prior
two
years.
The
Board
reviewed
BlackRock's
estimated
profitability
with
respect
to
certain
other
U.S.
fund
complexes
managed
by
the
Manager
and/or
its
affiliates.
The
Board
reviewed
BlackRock's
assumptions
and
methodology
of
allocating
expenses
in
the
estimated
profitability
analysis,
noting
the
inherent
limitations
in
allocating
costs
among
various
advisory
products.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors
including,
among
other
things,
fee
waivers
and
expense
reimbursements
by
the
Manager,
the
types
of
funds
managed,
precision
of
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
the
individual
fund
level
is
difficult.
The
Board
noted
that,
in
general,
individual
fund
or
product
line
profitability
of
other
advisors
is
not
publicly
available.
The
Board
reviewed
BlackRock's
overall
operating
margin,
in
general,
compared
to
that
of
certain
other
publicly
traded
asset
management
firms.
The
Board
considered
the
differences
between
BlackRock
and
these
other
firms,
including
the
contribution
of
technology
at
BlackRock,
BlackRock's
expense
management,
and
the
relative
product
mix.
The
Board
considered
whether
BlackRock
has
the
financial
resources
necessary
to
attract
and
retain
high
quality
investment
management
personnel
to
perform
its
obligations
under
the
Agreements
and
to
continue
to
provide
the
high
quality
of
services
that
is
expected
by
the
Board.
The
Board
further
considered
factors
including
but
not
limited
to
BlackRock's
commitment
of
time,
assumption
of
risk,
and
liability
profile
in
servicing
the
Fund,
including
in
contrast
to
what
is
required
of
BlackRock
with
respect
to
other
products
with
similar
investment
mandates
across
the
open-end
fund,
ETF,
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable.
The
Board
reviewed
the
expenses
within
the
context
of
the
low
yield
environment,
and
any
consequent
expense
waivers
and
reimbursements
necessary
to
maintain
minimum
levels
of
daily
net
investment
income,
as
applicable.
The
Board
noted
that
the
Fund's
contractual
management
fee
rate
ranked
in
the
fourth
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
the
Fund's
Expense
Peers.
The
Board
further
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
additionally
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Fund's
total
expenses
as
a
percentage
of
the
Fund's
average
daily
net
assets
on
a
class-by-class
basis.
D.
Economies
of
Scale
The
Board,
including
the
Independent
Board
Members,
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
the
Fund
increase,
including
the
existence
of
fee
waivers
and/or
expense
caps,
as
applicable,
noting
that
any
contractual
fee
waivers
and
contractual
expense
caps
had
been
approved
by
the
Board.
In
its
consideration,
the
Board
further
considered
the
continuation
and/or
implementation
of
fee
waivers
and/or
expense
caps,
as
applicable.
The
Board
also
considered
the
extent
to
which
the
Fund
benefits
from
such
economies
of
scale
in
a
variety
of
ways,
and
whether
there
should
be
changes
in
the
advisory
fee
rate
or
breakpoint
structure
in
order
to
enable
the
Fund
to
more
fully
participate
in
these
economies
of
scale.
The
Board
considered
the
Fund's
asset
levels
and
whether
the
current
fee
schedule
was
appropriate.
E.
Other
Factors
Deemed
Relevant
by
the
Board
Members
The
Board,
including
the
Independent
Board
Members,
also
took
into
account
other
ancillary
or
"fall-out"
benefits
that
BlackRock
or
its
affiliates
may
derive
from
BlackRock's
respective
relationships
with
the
Fund,
both
tangible
and
intangible,
such
as
BlackRock's
ability
to
leverage
its
investment
professionals
who
manage
other
portfolios
and
its
risk
management
personnel,
an
increase
in
BlackRock's
profile
in
the
investment
advisory
community,
and
the
engagement
of
BlackRock's
affiliates
as
service
providers
to
the
Fund,
including
for
administrative,
distribution,
securities
lending
and
cash
management
services.
The
Board
also
considered
BlackRock's
overall
operations
and
its
efforts
to
expand
the
scale
of,
and
improve
the
quality
of,
its
operations.
The
Board
also
noted
that,
subject
to
applicable
law,
BlackRock
may
use
and
benefit
from
third-party
research
obtained
by
soft
dollars
generated
by
certain
registered
fund
transactions
to
assist
in
managing
all
or
a
number
of
its
other
client
accounts.
In
connection
with
its
consideration
of
the
Agreements,
the
Board
also
received
information
regarding
BlackRock's
brokerage
and
soft
dollar
practices.
The
Board
received
reports
from
BlackRock
which
included
information
on
brokerage
commissions
and
trade
execution
practices
throughout
the
year.
The
Board
noted
the
competitive
nature
of
the
open-end
fund
marketplace,
and
that
shareholders
are
able
to
redeem
their
Fund
shares
if
they
believe
that
the
Fund's
fees
and
expenses
are
too
high
or
if
they
are
dissatisfied
with
the
performance
of
the
Fund.
Conclusion
The
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
the
Advisory
Agreement
between
the
Manager
and
the
Trust,
on
behalf
of
the
Fund,
for
a
one-year
term
ending
June
30,
2022,
and
the
Sub-Advisory
Agreement
between
the
Manager
and
the
Sub-Advisor,
with
respect
to
the
Fund,
for
a
one-year
term
ending
June
30,
2022.
Based
upon
its
evaluation
of
all
of
the
aforementioned
factors
in
their
totality,
as
well
as
other
information,
the
Board,
including
the
Independent
Board
Members,
was
satisfied
that
the
terms
of
the
Agreements
were
fair
and
reasonable
and
in
the
best
interest
of
the
Fund
and
its
shareholders.
In
arriving
at
its
decision
to
approve
the
Agreements,
the
Board
did
not
identify
any
single
factor
or
group
of
factors
as
all-important
or
controlling,
but
considered
all
factors
together,
and
different
Board
Members
may
have
attributed
different
weights
to
the
various
factors
considered.
The
Independent
Board
Members
were
also
assisted
by
the
advice
of
independent
legal
counsel
in
making
this
determination.
Additional
Information
27
Additional
Information
General
Information
Quarterly
performance,
semi-annual
and
ann
ual
reports,
current
net
asset
value
and
other
information
regarding
the
Fund
may
be
found
on
BlackRock's
website,
which
can
be
accessed
at
blackrock.com
.
Any
reference
to
BlackRock's
website
in
this
report
is
intended
to
allow
investors
public
access
to
information
regarding
the
Fund
and
does
not,
and
is
not
intended
to,
incorporate
BlackRock's
website
in
this
report.
Householding
The
Fund
will
mail
only
one
copy
of
shareholder
documents,
including
prospectuses,
annual
and
semi-annual
reports,
Rule
30e-3
notices
and
proxy
statements,
to
shareholders
with
multiple
accounts
at
the
same
address.
This
practice
is
commonly
called
"householding"
and
is
intended
to
reduce
expenses
and
eliminate
duplicate
mailings
of
shareholder
documents.
Mailings
of
your
shareholder
documents
may
be
householded
indefinitely
unless
you
instruct
us
otherwise.
If
you
do
not
want
the
mailing
of
these
documents
to
be
combined
with
those
for
other
members
of
your
household,
please
call
the
Transfer
Agent at
(800)
441-7762.
Availability
of
Quarterly
Schedule
of
Investments
The
Fund
files
its
complete
schedule
of
portfolio
holdings
with
the
SEC
each
month
on
Form
N-MFP.
The
Fund's
reports
on
Form
N-MFP
are
available
on
the
SEC's
website
at
sec.gov
.
The
Fund
makes
portfolio
holdings
available
to
shareholders
on
its
website
at
blackrock.com
.
Availability
of
Proxy
Voting
Policies,
Procedures and
Voting
Records
A
description
of
the
policies
and
procedures
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
information
about
how
the
Fund
voted
proxies
relating
to
securities
held
in
the
Fund's
portfolio
during
the
most
recent
12-month
period
ended
June
30 is
available
without
charge,
upon
request (1)
by
calling
(800)
441-
7762
;
(2)
on
the
BlackRock
website
at
blackrock.com
;
and
(3)
on
the
SEC's
website
at
sec.gov
.
Shareholder
Privileges
Account
Information
Call
us
at
(800)
441-7762
from
8:00
AM
to
6:00
PM
ET
on
any
business
day
to
get
information
about
your
account
balances,
recent
transactions
and
share
prices.
You
can
also
visit
blackrock.com
for
more
information.
Automatic
Investment
Plans
Investor
class
shareholders
who
want
to
invest
regularly
can
arrange
to
have
$50
or
more
automatically
deducted
from
their
checking
or
savings
account
and
invested
in
any
of
the
BlackRock
funds.
Systematic
Withdrawal
Plans
Investor
class
shareholders
can
establish
a
systematic
withdrawal
plan
and
receive
periodic
payments
of
$50
or
more
from
their
BlackRock
funds,
as
long
as
their
account
balance
is
at
least
$10,000.
Retirement
Plans
Shareholders
may
make
investments
in
conjunction
with
Traditional,
Rollover,
Roth,
Coverdell,
Simple
IRAs,
SEP
IRAs
and
403(b)
Plans.
BlackRock
Privacy
Principles
BlackRock
is
committed
to
maintaining
the
privacy
of
its
current
and
former
fund
investors
and
individual
clients
(collectively,
"Clients")
and
to
safeguarding
their
non-public
personal
information.
The
following
information
is
provided
to
help
you
understand
what
personal
information
BlackRock
collects,
how
we
protect
that
information
and
why
in
certain
cases
we
share
such
information
with
select
parties.
If
you
are
located
in
a
jurisdiction
where
specific
laws,
rules
or
regulations
require
BlackRock
to
provide
you
with
additional
or
different
privacy-related
rights
beyond
what
is
set
forth
below,
then
BlackRock
will
comply
with
those
specific
laws,
rules
or
regulations.
BlackRock
obtains
or
verifies
personal
non-public
information
from
and
about
you
from
different
sources,
including
the
following:
(i)
information
we
receive
from
you
or,
if
applicable,
your
financial
intermediary,
on
applications,
forms
or
other
documents;
(ii)
information
about
your
transactions
with
us,
our
affiliates,
or
others;
(iii)
information
we
receive
from
a
consumer
reporting
agency;
and
(iv)
from
visits
to
our
websites.
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
Additional
Information
(continued)
2021
BlackRock
Semi-Annual
Report
to
Shareholders
28
information.
BlackRock
maintains
physical,
electronic
and
procedural
safeguards
that
are
designed
to
protect
the
non-public
personal
information
of
its
Clients,
including
procedures
relating
to
the
proper
storage
and
disposal
of
such
information.
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Adviser
BlackRock
International
Limited
Edinburgh,
EH3
8BL
United
Kingdom
Accounting
Agent
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
Custodians
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
The
Bank
of
New
York
Mellon
New
York,
NY
10286
Transfer
Agent
BNY
Mellon
Investment
Servicing
(US)
Inc.
Wilmington,
DE
19809
Independent
Registered
Public
Accounting
Firm
Deloitte
&
Touche
LLP
Boston,
MA
02116
Distributor
BlackRock
Investments,
LLC
New
York,
NY
10022
Legal
Counsel
Sidley
Austin
LLP
New
York,
NY
10019
Address
of
the
Trust
100
Bellevue
Parkway
Wilmington,
DE
19809
Glossary
of
Terms
Used
in
This
Report
29
Glossary
of
Terms
Used
in
This
Report
Currency
Abbreviations
USD
United
States
Dollar
Portfolio
Abbreviations
LIBOR
London
Interbank
Offered
Rate
LIQ
Liquidity
Agreement
LOC
Letter
of
Credit
RB
Revenue
Bonds
SBPA
Stand-by-Bond
Purchase
Agreement
SOFR
Secured
Overnight
Financing
Rate
VRDN
Variable
Rate
Demand
Notes
Want
to
know
more?
blackrock.com
|
800-441-7762
This
report
is
intended
for
current
holders.
It
is
not
authorized
for
use
as
an
offer
of
sale
or
a
solicitation
of
an
offer
to
buy
shares
of
the
Fund
unless
preceded
or
accompanied
by
the
Fund's
current
prospectus.
You
could
lose
money
by
investing
in
the
Fund.
Although
the
Fund
seeks
to
preserve
the
value
of
your
investment
at
$1.00
per
share,
it
cannot
guarantee
it
will
do
so.
The
Fund
may
impose
a
fee
upon
sale
of
your
shares
or
may
temporarily
suspend
your
ability
to
sell
shares
if
the
Fund's
liquidity
falls
below
required
minimums
because
of
market
conditions
or
other
factors.
An
investment
in
the
Fund
is
not
insured
or
guaranteed
by
the
Federal
Deposit
Insurance
Corporation
or
any
other
government
agency.
The
Fund's
sponsor
has
no
legal
obligation
to
provide
financial
support
to
the
Fund
at
any
time.
Performance
data
quoted
represents
past
performance
and
does
not
guarantee
future
results.
Total
return
information
assumes
reinvestment
of
all
distributions.
Current
performance
may
be
higher
or
lower
than
the
performance
data
quoted.
For
current
month-end
performance
information,
call
(800)
626-1960.
The
Fund's
current
7-day
yield
more
closely
reflects
the
current
earnings
of
the
Fund
than
the
total
returns
quoted.
Statements
and
other
information
herein
are
as
dated
and
are
subject
to
change.
MM-9/21-SAR
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this semi-annual report
Item 5 - Audit Committee of Listed Registrant - Not Applicable
Item 6 - Investments

(a) The registrant's Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders -There have been no material changes to these procedures.
Item 11 - Controls and Procedures
(a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the period covered by this report
that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 12 -
Disclosure of Securities Lending Activities for Closed-End Management Investment
Companies
- Not Applicable
Item 13 - Exhibits attached hereto
(a)(1) Code of Ethics - Not Applicable to this semi-annual report
(a)(2) Section 302 Certifications are attached
section302
(a)(3) Not Applicable
(a)(4) Not Applicable
(b) Section 906 Certifications are attached
section906

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Funds
SM
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Funds
SM
Date: December 3, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Funds
SM
Date: December 3, 2021
By: /s/ Trent Walker
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Funds
SM
Date: December 3, 2021