Blackrock Funds

10/04/2022 | Press release | Distributed by Public on 10/04/2022 10:51

Annual Report by Investment Company - Form N-CSR

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 Short Obligations Fund
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds
SM
, 55 East 52nd Street, New York, NY 10055
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 07/31/2022
Date of reporting period: 07/31/2022
Item 1 - Report to Stockholders
(a)
The Report to Shareholders is attached herewith.
(b)
Not Applicable
JULY
31,
2022
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2022
Annual
Report
BlackRock
Funds
SM
BlackRock
Short
Obligations
Fund
Dear
Shareholder,
The
12-month
reporting
period
as
of
July
31,
2022
saw
the
emergence
of
significant
challenges
that
disrupted
the
economic
recovery
and
strong
financial
markets.
The
U.S.
economy
shrank
in
the
first
half
of
2022,
ending
the
run
of
robust
growth
that
followed
the
reopening
of
global
economies
and
the
development
of
COVID-19
vaccines.
Changes
in
consumer
spending
patterns
and
a
tight
labor
market
led
to
elevated
inflation,
which
reached
a
40-year
high.
Moreover,
while
the
foremost
effect
of
Russia's
invasion
of
Ukraine
has
been
a
severe
humanitarian
crisis,
the
ongoing
war
continued
to
present
challenges
for
both
investors
and
policymakers.
Equity
prices
fell
as
interest
rates
rose,
particularly
weighing
on
relatively
high-valuation
growth
stocks
and
economically
sensitive
small-capitalization
stocks.
While
both
large-
and
small-capitalization
U.S.
stocks
fell,
declines
for
small-capitalization
U.S.
stocks
were
steeper.
Both
emerging
market
stocks
and
international
equities
from
developed
markets
fell
significantly,
pressured
by
rising
interest
rates
and
a
strengthening
U.S.
dollar.
The
10-year
U.S.
Treasury
yield
(which
is
inversely
related
to
bond
prices)
rose
notably
during
the
reporting
period
as
investors
reacted
to
higher
inflation
and
attempted
to
anticipate
its
impact
on
future
interest
rate
changes.
The
corporate
bond
market
also
faced
inflationary
headwinds,
and
increasing
uncertainty
led
to
higher
corporate
bond
spreads
(the
difference
in
yield
between
U.S.
Treasuries
and
similarly-dated
corporate
bonds).
The
U.S.
Federal
Reserve
(the
"Fed"),
acknowledging
that
inflation
is
growing
faster
than
expected,
raised
interest
rates
four
times
while
indicating
that
additional
rate
hikes
were
likely.
Furthermore,
the
Fed
wound
down
its
bond-buying
programs
and
began
to
reduce
its
balance
sheet.
Continued
high
inflation
and
the
Fed's
statements
led
many
analysts
to
anticipate
that
interest
rates
have
room
to
rise
before
peaking,
although
investors'
inflation
expectations
began
to
decline
near
the
end
of
the
period.
The
horrific
war
in
Ukraine
has
significantly
clouded
the
outlook
for
the
global
economy,
leading
to
major
volatility
in
energy
and
metals
markets.
Sanctions
on
Russia,
Europe's
top
energy
supplier,
and
general
wartime
disruption
have
magnified
supply
problems
for
key
commodities.
We
believe
elevated
energy
prices
will
continue
to
exacerbate
inflationary
pressure
while
also
constraining
economic
growth.
Combating
inflation
without
stifling
a
recovery,
while
buffering
against
ongoing
supply
and
price
shocks,
will
be
an
especially
challenging
environment
for
setting
effective
monetary
policy.
Despite
the
likelihood
of
more
rate
increases
on
the
horizon,
we
believe
the
Fed
will
ultimately
err
on
the
side
of
protecting
employment,
even
at
the
expense
of
higher
inflation.
In
the
meantime,
however,
we
believe
that
we
are
likely
to
see
a
period
of
slowing
growth
paired
with
relatively
high
inflation.
In
this
environment,
while
we
favor
an
overweight
to
equities
in
the
long-term,
the
market's
concerns
over
excessive
rate
hikes
from
central
banks
moderate
our
outlook.
Furthermore,
the
energy
shock
and
a
deteriorating
economic
backdrop
in
China
and
Europe
are
likely
to
challenge
corporate
earnings,
so
we
are
underweight
equities
overall
in
the
near-term.
We
take
the
opposite
view
on
credit,
where
higher
spreads
provide
near-term
opportunities,
while
the
likelihood
of
higher
inflation
leads
us
to
take
an
underweight
stance
on
credit
in
the
long-term.
We
believe
that
investment-grade
corporates,
U.K.
gilts,
local-currency
emerging
market
debt,
and
inflation-protected
bonds
(particularly
in
Europe)
offer
strong
opportunities
for
a
six-
to
twelve-month
horizon.
Overall,
our
view
is
that
investors
need
to
think
globally,
extend
their
scope
across
a
broad
array
of
asset
classes,
and
be
nimble
as
market
conditions
change.
We
encourage
you
to
talk
with
your
financial
advisor
and
visit
blackrock.com
for
further
insight
about
investing
in
today's
markets.
Sincerely,
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
July
31,
2022
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
(7.81%)
(4.64%)
U.S.
small
cap
equities
(Russell
2000
®
Index)
(6.42)
(14.29)
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
(11.27)
(14.32)
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(16.24)
(20.09)
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
0.21
0.22
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(6.38)
(10.00)
U.S.
investment
grade
bonds
(Bloomberg
U.S.
Aggregate
Bond
Index)
(6.14)
(9.12)
Tax-exempt
municipal
bonds
(Bloomberg
Municipal
Bond
Index)
(3.95)
(6.93)
U.S.
high
yield
bonds
(Bloomberg
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
(6.58)
(8.03)
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Fund
Summary
........................................................................................................
4
About
Fund
Performance
..................................................................................................
7
Disclosure
of
Expenses
...................................................................................................
7
Financial
Statements:
Schedule
of
Investments
................................................................................................
8
Statement
of
Assets
and
Liabilities
..........................................................................................
15
Statement
of
Operations
................................................................................................
17
Statements
of
Changes
in
Net
Assets
........................................................................................
18
Financial
Highlights
.....................................................................................................
19
Notes
to
Financial
Statements
...............................................................................................
22
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
29
Important
Tax
Information
.................................................................................................
30
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
...................................................................
31
Trustee
and
Officer
Information
..............................................................................................
34
Additional
Information
....................................................................................................
38
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
40
Fund
Summary
as
of
July
31,
2022
2022
BlackRock
Annual
Report
to
Shareholders
4
BlackRock
Short
Obligations
Fund
Investment
Objective
BlackRock
Short
Obligations
Fund's
(the
"Fund")
investment
objective
is
to
seek
current
income
consistent
with
preservation
of
capital.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
12-month
period
ended
July
31,
2022,
all
of
the
Fund's
share
classes
underperformed
its
benchmark,
the
ICE
BofA
6-Month
U.S.
Treasury
Bill
Index.
What
factors
influenced
performance?
Investor
outflows
from
the
Fund
in
a
rising
interest
rate
environment
weighed
on
performance
relative
to
the
benchmark.
The
Fund's
positioning
along
the
yield
curve
also
detracted
from
relative
performance.
The
Fund's
below
benchmark
stance
with
respect
to
overall
portfolio
duration
and
corresponding
interest
rate
sensitivity
proved
additive
to
performance
as
the
Fed
moved
to
aggressively
raise
its
benchmark
overnight
lending
rate.
In
addition,
security
selection
aided
relative
return,
most
notably
an
allocation
to
floating
rate
instruments
with
payments
tied
to
the
Secured
Overnight
Financing
Rate
("SOFR").
Describe
recent
portfolio
activity.
The
Fund
sought
to
capture
higher
reinvestment
rates
by
concentrating
purchases
in
one-week
commercial
paper,
which
experienced
steady
increases
in
yield,
and
by
selectively
adding
duration
with
both
fixed
and
floating
rate
investment
grade
corporate
purchases
at
attractive
yields
relative
to
CDs
and
commercial
paper.
The
Fund
maintained
a
substantial
allocation
in
floating
rate
notes
in
order
to
protect
against
an
upward
move
in
interest
rates
given
rising
expectations
for
inflation
and
tighter
Fed
policy.
Describe
portfolio
positioning
at
period
end.
At
period
end,
the
Fund
was
positioned
with
a
below
benchmark
duration
and
corresponding
interest
rate
sensitivity
in
anticipation
of
further
Fed
interest
rate
increases
over
the
remainder
of
2022.
In
this
vein,
more
than
half
of
Fund
assets
were
investing
in
floating
rate
securities,
and
more
than
one-third
of
assets
were
held
in
SOFR-linked
floaters
which
reset
daily
and
allow
the
Fund's
yield
to
benefit
from
rate
hikes.
The
views
expressed
reflect
the
opinions
of
BlackRock
as
of
the
date
of
this
report
and
are
subject
to
change
based
on
changes
in
market,
economic
or
other
conditions.
These
views
are
not
intended
to
be
a
forecast
of
future
events
and
are
no
guarantee
of
future
results.
Fund
Summary
as
of
July
31,
2022
(continued)
5
Fund
Summary
BlackRock
Short
Obligations
Fund
GROWTH
OF
$10,000
INVESTMENT
The
Fund
commenced
operations
on
November
15,
2012.
Performance
Past
performance
is
not
an
indication
of
future
results.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Performance
results
may
include
adjustments
made
for
financial
reporting
purposes
in
accordance
with
U.S.
generally
accepted
accounting
principles.
(a)
Assuming
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional,
Class
K
and
Investor
A
Shares
do
not
have
a
sales
charge.
(b)
Under
normal
market
conditions,
the
Fund
will
invest
in
U.S.
dollar-denominated
investment
grade
and
short-term
fixed
and
floating
rate
debt
securities
maturing
in
three
years
or
less
(with
certain
exceptions)
and
will
maintain
a
dollar-weighted
average
maturity
of
180
days
or
less
and
a
dollar-weighted
average
life
of
365
days
or
less.
(c)
An
unmanaged
index
that
tracks
6-month
U.S.
Treasury
securities.
On
March
1,
2021
the
Fund
began
to
track
the
4pm
pricing
variant
of
ICE
BofA
6-Month
U.S.
Treasury
Bill
Index
(the
"Index").
Historical
index
data
prior
to
3/1/2021
is
for
the
3pm
pricing
variant
of
the
Index.
Index
data
on
and
after
March
1,
2021
is
for
the
4pm
pricing
variant
of
the
Index.
Average
Annual
Total
Returns
(a)
Standardized
30-Day
Yields
(b)
Unsubsidized
30-Day
Yields
(b)
1
Year
5
Years
Since
Inception
(c)
Institutional
...................................................
2.26‌%
2.17‌%
(0.51‌)%
1.25‌%
1.01‌%
Investor
A
....................................................
2.03‌
1.92‌
(0.85‌)
1.02‌
0.75‌
Class
K
.....................................................
2.33‌
2.19‌
(0.55‌)
1.32‌
1.07‌
ICE
BofA
6-Month
U.S.
Treasury
Bill
Index
............................
-‌
-‌
0.09‌
1.23‌
0.81‌
(a)
See
"About
Fund
Performance"
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees,
and
how
performance
was
calculated
for
certain
share
classes.
(b)
The
standardized
30-day
yield
includes
the
effects
of
any
waivers
and/or
reimbursements.
The
unsubsidized
30-day
yield
excludes
the
effects
of
any
waivers
and/or
reimbursements.
(c)
The
Fund
commenced
operations
on
November
15,
2012.
Fund
Summary
as
of
July
31,
2022
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
6
BlackRock
Short
Obligations
Fund
Expense
Example
See
"Disclosure
of
Expenses"
for
further
information
on
how
expenses
were
calculated.
Portfolio
Information
Actual
H
ypothetical
5%
Re
turn
Beginning
Account
Value
(02/01/22)
Ending
Account
Value
(07/31/22)
Expenses
Paid
During
the
Period
(a)
Beginning
Account
Value
(02/01/22)
Ending
Account
Value
(07/31/22)
Expenses
Paid
During
the
Period
(a)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
997.50‌
$
1.29‌
$
1,000.00‌
$
1,023.51‌
$
1.30‌
0.26‌%
Investor
A
................................
1,000.00‌
995.30‌
2.47‌
1,000.00‌
1,022.32‌
2.51‌
0.50‌
Class
K
..................................
1,000.00‌
996.80‌
0.99‌
1,000.00‌
1,023.80‌
1.00‌
0.20‌
(a)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-half
year
period
shown).
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
Net
Assets
Corporate
Bonds
....................................
58.1‌
%
Commercial
Paper
...................................
15.7‌
Certificates
of
Deposit
.................................
10.4‌
Repurchase
Agreements
...............................
8.3‌
Municipal
Bonds
....................................
5.3‌
Asset-Backed
Securities
...............................
1.3‌
Foreign
Government
Obligations
.........................
0.7‌
Money
Market
Funds
.................................
-‌
(a)
Other
Assets
Less
Liabilities
............................
0.2‌
MATURITY
BREAKDOWN
Percent
of
Net
Assets
1-7
days
..........................................
3.3‌
%
15-30
days
........................................
2.9‌
31-60
days
........................................
8.4‌
61-90
days
........................................
5.7‌
91-120
days
.......................................
7.3‌
121-150
days
......................................
2.8‌
>150
days
........................................
69.6‌
(a)
Represents
less
than
0.1%
of
the
Fund's
net
assets.
About
Fund
Performance
7
About
Fund
Performance
/
Disclosure
of
Expenses
Institutional
and
Class
K
Shares
are
not
subject
to
any
sales
charge.
These
shares
bear
no
ongoing
distribution
or
service
fees
and
are
available
only
to
certain
eligible
investors
.
Institutional
Shares
performance
shown
prior
to
the
Institutional
Shares
inception
date
of
July
9,
2013
is
that
of
Class
K
Shares
(which
have
no
distribution
or
service
fees)
and
was
restated
to
reflect
Institutional
Shares
fees.
Investor
A
Shares
are
not
subject
to
any
sales
charge
and
bear
no
ongoing
distribution
fee.
These
shares
are
subject
to
an
ongoing
service
fee
of
0.25%
per
year.
Certain
redemptions
of
these
shares
may
be
subject
to
a
contingent
deferred
sales
charge
("CDSC")
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase.
These
shares
are
generally
available
through
financial
intermediaries.
Investor
A
Shares
performance
shown
prior
to
the
Investor
A
Shares
inception
date
of
March
9,
2018
is
that
of
Class
K
Shares
(which
have
no
distribution
or
service
fees)
and
was
restated
to
reflect
Investor
A
Shares
fees.
Past
performance
is
not
an
indication
of
future
results.
Financial
markets
have
experienced
extreme
volatility
and
trading
in
many
instruments
has
been
disrupted.
These
circumstances
may
continue
for
an
extended
period
of
time
and
may
continue
to
affect
adversely
the
value
and
liquidity
of
the
Fund's
investments.
As
a
result,
current
performance
may
be
lower
or
higher
than
the
performance
data
quoted.
Refer
to
blackrock.com
to
obtain
performance
data
current
to
the
most
recent
month-end.
Performance
results
do
not
reflect
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Figures
shown
in
the
performance
table(s) assume
reinvestment
of
all
distributions,
if
any,
at
net
asset
value
("NAV")
on
the
ex-dividend
date
or
payable
date,
as
applicable.
Investment
return
and
principal
value
of
shares
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Distributions
paid
to
each
class
of
shares
will
vary
because
of
the
different
levels
of
service,
distribution
and
transfer
agency
fees
applicable
to
each
class,
which
are
deducted
from
the
income
available
to
be
paid
to
shareholders.
BlackRock
Advisors,
LLC
(the
"Manager"),
the
Fund's
investment
adviser,
has
contractually
and/or
voluntarily
agreed
to
waive
and/or
reimburse
a
portion
of
the
Fund's
expenses.
Without
such
waiver(s)
and/or
reimbursement(s),
the
Fund's
performance
would
have
been
lower.
With
respect
to
the
Fund's
voluntary
waiver(s),
if
any,
the
Manager
is
under
no
obligation
to
waive
and/or
reimburse
or
to
continue
waiving
and/or
reimbursing
its
fees
and
such
voluntary
waiver(s)
may
be
reduced
or
discontinued
at
any
time.
With
respect
to
the
Fund's
contractual
waiver(s),
if
any,
the
Manager
is
under
no
obligation
to
continue
waiving
and/or
reimbursing
its
fees
after
the
applicable
termination
date
of
such
agreement.
See
the
Notes
to
Financial
Statements
for
additional
information
on
waivers
and/or
reimbursements.
The
standardized
30-day
yield
includes
the
effects
of
any
waivers
and/or
reimbursements.
The
unsubsidized
30-day
yield
excludes
the
effects
of
any
waivers
and/or
reimbursements.
Disclosure
of
Expenses
Shareholders
of
the
Fund
may
incur
the
following
charges:
(a)
transactional
expenses;
and
(b)
operating
expenses,
including
investment
advisory
fees, service
and
distribution
fees,
including
12b-1
fees,
acquired
fund
fees
and
expenses, and
other
fund
expenses.
The
expense
example
shown
(which
is
based
on
a
hypothetical
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
through
the
end
of
the
period)
is
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in
the
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
mutual
funds.
The
expense
example
provides
information
about
actual
account
values
and
actual
expenses.
Annualized
expense
ratios
reflect
contractual
and
voluntary
fee
waivers,
if
any.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their 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.
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Short
Obligations
Fund
8
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
July
31,
2022
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
BMW
Vehicle
Owner
Trust,
Series
2022-A,
Class
A2A,
2.52%,
12/26/24
.........
USD
5,820
$
5,780,901
Ford
Credit
Auto
Owner
Trust
Series
2022-A,
Class
A2,
0.73%,
09/15/24
5,432
5,371,607
Series
2022-B,
Class
A2A,
3.44%,
02/15/25
3,946
3,940,782
Hyundai
Auto
Lease
Securitization
Trust
(a)
Series
2021-C,
Class
A2,
0.24%,
01/16/24
5,802
5,734,324
Series
2022-B,
Class
A2A,
2.75%,
10/15/24
7,750
7,680,783
Toyota
Auto
Receivables
Owner
Trust,
Series
2022-B,
Class
A2A,
2.35%,
01/15/25
...
4,412
4,379,653
Total
Asset-Backed
Securities
-
1.3%
(Cost:
$33,160,312)
..............................
32,888,050
Corporate
Bonds
Automobiles
-
4.2%
(a)
BMW
US
Capital
LLC
0.80%,
04/01/24
.................
2,680
2,566,792
(SOFRINDX
+
0.53%),
2.81%,
04/01/24
(b)
15,615
15,469,906
(SOFRINDX
+
0.38%),
2.66%,
08/12/24
(b)
17,735
17,457,625
Hyundai
Capital
America
2.85%,
11/01/22
.................
2,827
2,822,987
2.38%,
02/10/23
.................
12,340
12,231,116
0.80%,
04/03/23
.................
18,500
18,070,468
Mercedes-Benz
Finance
North
America
LLC
2.55%,
08/15/22
.................
2,095
2,094,772
0.75%,
03/01/24
.................
16,690
15,965,603
Volkswagen
Group
of
America
Finance
LLC
0.75%,
11/23/22
.................
11,350
11,239,340
(SOFR
+
0.95%),
2.48%,
06/07/24
(b)
...
5,140
5,130,666
103,049,275
Banks
-
12.3%
Banco
Santander
SA
3.89%,
05/24/24
.................
6,800
6,820,806
0.70%,
06/30/24
(b)
................
6,800
6,570,377
Bank
of
America
Corp.
(b)
3.00%,
12/20/23
.................
5,000
4,986,708
0.52%,
06/14/24
.................
15,915
15,438,111
Citigroup,
Inc.,
(SOFR
+
1.37%),
4.14%,
05/24/25
(b)
....................
2,025
2,027,122
Credit
Agricole
Corporate
&
Investment
Bank
SA,
0.40%,
01/15/23
(a)
............
15,000
14,826,506
DNB
Bank
ASA
(a)
2.15%,
12/02/22
.................
13,000
12,963,620
(LIBOR
USD
3
Month
+
0.62%),
2.23%,
12/02/22
(b)
...................
7,000
6,995,566
Fifth
Third
Bank
NA,
1.80%,
01/30/23
....
6,840
6,798,847
HSBC
Holdings
plc,
1.16%,
11/22/24
(b)
....
3,785
3,627,713
JPMorgan
Chase
&
Co.
(b)
(SOFR
+
0.58%),
0.70%,
03/16/24
.....
5,000
4,910,982
(SOFR
+
0.58%),
2.86%,
03/16/24
.....
20,000
19,810,163
(SOFR
+
0.98%),
3.85%,
06/14/25
.....
6,600
6,581,368
Keybank
Foundation,
0.43%,
06/14/24
(b)
...
6,000
5,836,650
KeyBank
NA,
(SOFR
+
0.32%),
2.60%,
06/14/24
(b)
....................
14,355
14,161,592
Kookmin
Bank
(a)(b)
(SOFR
+
0.45%),
2.73%,
08/03/22
.....
10,535
10,535,057
(SOFRINDX
+
0.32%),
2.60%,
11/03/22
.
7,000
6,996,941
Mitsubishi
UFJ
Financial
Group,
Inc.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.70%),
4.79%,
07/18/25
(b)
9,410
9,511,645
National
Australia
Bank
Ltd.
1.88%,
12/13/22
.................
10,830
10,789,012
(LIBOR
USD
3
Month
+
0.41%),
2.13%,
12/13/22
(a)(b)
..................
6,000
5,996,218
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
Nordea
Bank
Abp
(a)
1.00%,
06/09/23
.................
USD
4,255
$
4,171,384
3.60%,
06/06/25
.................
4,425
4,407,754
Santander
UK
plc,
2.10%,
01/13/23
......
2,807
2,785,442
Skandinaviska
Enskilda
Banken
AB
(a)
2.20%,
12/12/22
.................
4,740
4,723,002
(LIBOR
USD
3
Month
+
0.65%),
2.37%,
12/12/22
(b)
...................
4,000
3,999,079
Societe
Generale
SA,
4.35%,
06/13/25
(a)
...
5,000
5,024,253
Sumitomo
Mitsui
Financial
Group,
Inc.,
0.51%,
01/12/24
.....................
3,380
3,232,260
Sumitomo
Mitsui
Trust
Bank
Ltd.
(a)
0.80%,
09/12/23
.................
16,306
15,811,765
0.80%,
09/16/24
.................
8,000
7,484,850
(SOFR
+
0.44%),
2.72%,
09/16/24
(b)
...
10,000
9,835,100
Svenska
Handelsbanken
AB,
3.65%,
06/10/25
(a)
6,600
6,573,020
Swedbank
AB,
0.60%,
09/25/23
(a)
.......
14,000
13,529,348
Truist
Bank
1.25%,
03/09/23
.................
10,000
9,883,297
(SOFR
+
0.20%),
2.48%,
01/17/24
(b)
...
20,000
19,741,869
Westpac
Banking
Corp.
2.00%,
01/13/23
.................
5,345
5,316,674
1.02%,
11/18/24
.................
2,395
2,272,016
(SOFR
+
0.30%),
2.58%,
11/18/24
(b)
....
8,985
8,850,359
303,826,476
Beverages
-
1.2%
Coca-Cola
Europacific
Partners
plc,
0.50%,
05/05/23
(a)
....................
28,000
27,271,440
PepsiCo,
Inc.,
0.75%,
05/01/23
........
2,475
2,438,621
29,710,061
Biotechnology
-
0.5%
Gilead
Sciences,
Inc.,
0.75%,
09/29/23
...
12,521
12,163,360
Capital
Markets
-
7.3%
Bank
of
New
York
Mellon
Corp.
(The),
(SOFR
+
0.57%),
3.43%,
06/13/25
(b)
..........
6,600
6,580,890
Credit
Suisse
AG
1.00%,
05/05/23
.................
5,000
4,896,054
0.50%,
02/02/24
.................
2,670
2,538,431
(SOFRINDX
+
0.39%),
2.67%,
02/02/24
(b)
15,000
14,775,153
Deutsche
Bank
AG
Series
E,
0.96%,
11/08/23
..........
9,000
8,654,489
Series
E,
(SOFR
+
0.50%),
2.78%,
11/08/23
(b)
...................
13,175
13,025,345
4.16%,
05/13/25
.................
3,900
3,913,156
Goldman
Sachs
Group,
Inc.
(The)
0.52%,
03/08/23
.................
20,000
19,659,191
(SOFR
+
0.54%),
0.63%,
11/17/23
(b)
....
10,000
9,905,507
(SOFR
+
0.54%),
2.82%,
11/17/23
(b)
....
7,000
6,952,367
1.22%,
12/06/23
.................
4,000
3,877,950
Macquarie
Bank
Ltd.
(a)
2.10%,
10/17/22
.................
12,850
12,823,560
0.44%,
12/16/22
.................
4,120
4,074,696
(SOFR
+
0.30%),
2.58%,
04/06/23
(b)
...
5,000
4,975,944
Morgan
Stanley
(b)
(SOFR
+
0.47%),
0.56%,
11/10/23
.....
15,000
14,864,571
(SOFR
+
0.46%),
0.53%,
01/25/24
.....
8,000
7,870,567
Morgan
Stanley
&
Co.
LLC,
0.73%,
04/05/24
(b)
10,000
9,780,008
UBS
AG
(a)
0.38%,
06/01/23
.................
3,780
3,683,714
(SOFR
+
0.32%),
2.60%,
06/01/23
(b)
...
7,525
7,501,567
(SOFR
+
0.36%),
2.64%,
02/09/24
(b)
...
5,000
4,968,855
0.70%,
08/09/24
.................
3,680
3,466,441
(SOFR
+
0.45%),
2.73%,
08/09/24
(b)
...
6,775
6,723,941
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
9
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
July
31,
2022
Security
Par
(000)
Par
(000)
Value
Capital
Markets
(continued)
1.38%,
01/13/25
.................
USD
4,430
$
4,187,911
179,700,308
Chemicals
-
0.1%
Ecolab,
Inc.,
0.90%,
12/15/23
.........
2,695
2,618,885
Consumer
Finance
-
4.7%
American
Express
Co.,
3.38%,
05/03/24
...
2,695
2,690,602
American
Honda
Finance
Corp.
(LIBOR
USD
3
Month
+
0.15%),
1.65%,
02/22/23
(b)
...................
4,705
4,694,451
0.88%,
07/07/23
.................
838
819,524
(LIBOR
USD
3
Month
+
0.42%),
2.09%,
09/08/23
(b)
...................
5,790
5,774,704
0.75%,
08/09/24
.................
2,040
1,937,936
Capital
One
Financial
Corp.,
(SOFR
+
1.37%),
4.17%,
05/09/25
(b)
...............
6,800
6,742,881
Caterpillar
Financial
Services
Corp.
0.60%,
09/13/24
.................
6,730
6,373,910
(SOFR
+
0.27%),
2.55%,
09/13/24
(b)
...
12,325
12,104,900
Hyundai
Capital
Services,
Inc.,
0.75%,
09/15/23
(a)
....................
15,000
14,442,727
John
Deere
Capital
Corp.
(SOFR
+
0.20%),
2.48%,
10/11/24
(b)
....
11,080
10,908,482
3.40%,
06/06/25
.................
4,310
4,336,356
PACCAR
Financial
Corp.
0.80%,
06/08/23
.................
3,515
3,444,891
3.15%,
06/13/24
.................
2,955
2,947,498
Toyota
Motor
Credit
Corp.
(SOFR
+
0.34%),
2.62%,
10/14/22
(b)
...
18,000
17,990,511
(SOFR
+
0.20%),
1.73%,
02/13/23
(b)
...
13,366
13,335,856
2.90%,
03/30/23
.................
7,000
6,992,817
115,538,046
Diversified
Financial
Services
-
1.4%
LSEGA
Financing
plc,
0.65%,
04/06/24
(a)
..
3,120
2,962,054
National
Rural
Utilities
Cooperative
Finance
Corp.,
Series
D,
(SOFR
+
0.33%),
2.61%,
10/18/24
(b)
....................
5,000
4,940,098
NTT
Finance
Corp.
(a)
0.58%,
03/01/24
.................
6,005
5,729,488
4.14%,
07/26/24
.................
1,120
1,131,319
Siemens
Financieringsmaatschappij
NV,
(SOFR
+
0.43%),
2.71%,
03/11/24
(a)(b)
...
18,980
18,871,207
33,634,166
Diversified
Telecommunication
Services
-
1.1%
Bell
Canada
(The),
Series
US-3,
0.75%,
03/17/24
.....................
8,000
7,656,720
Verizon
Communications,
Inc.
0.75%,
03/22/24
.................
3,325
3,197,065
(SOFRINDX
+
0.50%),
2.78%,
03/22/24
(b)
16,955
16,775,405
27,629,190
Electric
Utilities
-
5.3%
Duke
Energy
Corp.
2.40%,
08/15/22
.................
4,619
4,616,691
(SOFR
+
0.25%),
2.53%,
06/10/23
(b)
...
13,375
13,279,140
Eversource
Energy,
Series
T,
(SOFRINDX
+
0.25%),
2.53%,
08/15/23
(b)
..........
19,015
18,870,989
Florida
Power
&
Light
Co.
(b)
(SOFRINDX
+
0.25%),
2.53%,
05/10/23
.
5,120
5,097,770
(SOFRINDX
+
0.38%),
2.66%,
01/12/24
.
2,505
2,475,593
NextEra
Energy
Capital
Holdings,
Inc.
(b)
(LIBOR
USD
3
Month
+
0.27%),
1.77%,
02/22/23
....................
30,000
29,855,644
(SOFRINDX
+
0.54%),
2.82%,
03/01/23
.
9,305
9,263,783
(SOFRINDX
+
0.40%),
2.68%,
11/03/23
.
20,000
19,750,831
Security
Par
(000)
Par
(000)
Value
Electric
Utilities
(continued)
PPL
Electric
Utilities
Corp.
(b)
(LIBOR
USD
3
Month
+
0.25%),
2.48%,
09/28/23
....................
USD
10,450
$
10,394,314
(SOFR
+
0.33%),
2.61%,
06/24/24
.....
8,080
7,930,711
Xcel
Energy,
Inc.,
0.50%,
10/15/23
......
9,450
9,125,936
130,661,402
Electrical
Equipment
-
0.1%
Rockwell
Automation,
Inc.,
0.35%,
08/15/23
.
2,860
2,773,405
Energy
Equipment
&
Services
-
0.2%
Schlumberger
Finance
Canada
Ltd.,
2.65%,
11/20/22
(a)
....................
3,500
3,492,083
Food
Products
-
1.0%
Hormel
Foods
Corp.,
0.65%,
06/03/24
....
5,565
5,328,265
Nestle
Holdings,
Inc.,
0.61%,
09/14/24
(a)
...
15,000
14,202,278
Unilever
Capital
Corp.,
0.63%,
08/12/24
...
4,635
4,400,429
23,930,972
Gas
Utilities
-
1.9%
Atmos
Energy
Corp.
0.63%,
03/09/23
.................
8,175
8,040,983
(LIBOR
USD
3
Month
+
0.38%),
2.07%,
03/09/23
(b)
...................
23,770
23,731,396
CenterPoint
Energy
Resources
Corp.,
0.70%,
03/02/23
.....................
15,935
15,745,875
47,518,254
Health
Care
Providers
&
Services
-
0.3%
UnitedHealth
Group,
Inc.,
0.55%,
05/15/24
.
8,030
7,672,080
Hotels,
Restaurants
&
Leisure
-
0.1%
Starbucks
Corp.,
(SOFRINDX
+
0.42%),
2.70%,
02/14/24
(b)
....................
3,490
3,456,141
Insurance
-
7.4%
(a)
Brighthouse
Financial
Global
Funding
(SOFR
+
0.31%),
2.59%,
02/24/23
(b)
...
13,655
13,621,857
1.20%,
12/15/23
.................
5,000
4,825,450
Jackson
National
Life
Global
Funding,
(SOFR
+
0.60%),
2.88%,
01/06/23
(b)
..........
36,000
35,988,613
Met
Tower
Global
Funding,
(SOFR
+
0.55%),
2.83%,
01/17/23
(b)
...............
20,060
20,046,337
Metropolitan
Life
Global
Funding
I
(b)
(SOFR
+
0.35%),
2.63%,
09/08/22
.....
27,000
26,995,741
(SOFR
+
0.57%),
2.85%,
01/13/23
.....
24,390
24,376,889
(SOFR
+
0.32%),
2.60%,
01/07/24
.....
20,000
19,819,207
New
York
Life
Global
Funding
(SOFRINDX
+
0.43%),
2.71%,
06/06/24
(b)
3,655
3,637,364
3.15%,
06/06/24
.................
3,360
3,333,221
Northwestern
Mutual
Global
Funding,
4.00%,
07/01/25
.....................
6,400
6,474,295
Principal
Life
Global
Funding
II
0.75%,
08/23/24
.................
705
659,579
(SOFR
+
0.38%),
2.66%,
08/23/24
(b)
...
680
666,150
Protective
Life
Global
Funding
0.50%,
04/12/23
.................
8,150
7,987,047
0.63%,
10/13/23
.................
5,670
5,486,065
0.47%,
01/12/24
.................
10,000
9,538,805
183,456,620
Internet
&
Direct
Marketing
Retail
-
0.2%
Amazon.com,
Inc.,
0.25%,
05/12/23
.....
4,705
4,620,272
Life
Sciences
Tools
&
Services
-
1.3%
Thermo
Fisher
Scientific,
Inc.
(SOFRINDX
+
0.35%),
2.63%,
04/18/23
(b)
15,000
14,954,380
0.80%,
10/18/23
.................
10,000
9,722,844
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Short
Obligations
Fund
10
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
July
31,
2022
Security
Par
(000)
Par
(000)
Value
Life
Sciences
Tools
&
Services
(continued)
(SOFRINDX
+
0.53%),
2.81%,
10/18/24
(b)
USD
7,495
$
7,362,662
32,039,886
Multi-Utilities
-
1.9%
Dominion
Energy,
Inc.,
Series
D,
(LIBOR
USD
3
Month
+
0.53%),
2.36%,
09/15/23
(b)
...
34,725
34,537,342
WEC
Energy
Group,
Inc.,
0.55%,
09/15/23
.
13,610
13,190,532
47,727,874
Oil,
Gas
&
Consumable
Fuels
-
3.2%
Chevron
USA,
Inc.,
(LIBOR
USD
3
Month
+
0.20%),
1.60%,
08/11/23
(b)
..........
40,515
40,533,611
Enbridge,
Inc.
(SOFR
+
0.40%),
2.68%,
02/17/23
(b)
...
9,400
9,364,844
0.55%,
10/04/23
.................
1,890
1,823,464
(SOFRINDX
+
0.63%),
2.91%,
02/16/24
(b)
5,520
5,446,612
TransCanada
PipeLines
Ltd.,
1.00%,
10/12/24
22,930
21,532,912
78,701,443
Pharmaceuticals
-
0.7%
AstraZeneca
plc,
0.30%,
05/26/23
.......
11,775
11,492,711
Roche
Holdings,
Inc.,
(SOFR
+
0.24%),
2.52%,
03/05/24
(a)(b)
...................
5,370
5,341,465
16,834,176
Semiconductors
&
Semiconductor
Equipment
-
0.8%
Analog
Devices,
Inc.,
(SOFR
+
0.25%),
2.53%,
10/01/24
(b)
....................
7,055
6,891,443
NVIDIA
Corp.
0.31%,
06/15/23
.................
10,000
9,758,630
0.58%,
06/14/24
.................
4,000
3,813,788
20,463,861
Software
-
0.1%
Roper
Technologies,
Inc.,
0.45%,
08/15/22
.
2,795
2,791,880
Thrifts
&
Mortgage
Finance
-
0.8%
Nationwide
Building
Society
(a)
2.00%,
01/27/23
.................
17,515
17,369,065
0.55%,
01/22/24
.................
1,520
1,450,044
18,819,109
Total
Corporate
Bonds
-
58.1%
(Cost:
$1,454,526,597)
...........................
1,432,829,225
Foreign
Government
Obligations
South
Korea
-
0.7%
Korea
Development
Bank
(The),
(LIBOR
USD
3
Month
+
0.35%),
1.81%
,
02/18/23
(b)
....
16,690
16,690,837
Total
Foreign
Government
Obligations
-
0.7%
(Cost:
$16,690,000)
..............................
16,690,837
Municipal
Bonds
Alabama
-
0.2%
Alabama
Federal
Aid
Highway
Finance
Authority
Series
2021B,
RB,
0.23%, 09/01/22
....
1,970
1,966,303
Series
2021B,
RB,
0.45%, 09/01/23
....
2,255
2,192,474
4,158,777
Security
Par
(000)
Par
(000)
Value
Arizona
-
0.4%
County
of
Pima
,
Series
2020C,
COP,
0.48%, 12/01/22
.................
USD
1,130
$
1,122,207
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates,
Various
States
(a)(c)(d)
Series
2021-MIZ9070,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
2.72%, 08/01/22
...............
5,000
5,000,000
Series
2021-MIZ9060TX,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
2.59%, 08/01/22
...............
4,108
4,107,673
Taxable
Municipal
Funding
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates,
Various
States
,
Series
2021-BTMFT-004,
RB
,
VRDN
(Barclays
Bank
plc
LOC)
,
2.55%, 08/04/22
(a)
(c)(d)
..........................
1,050
1,050,000
11,279,880
California
-
0.0%
Port
of
Oakland
,
Series
2020R,
RB,
0.82%, 05/01/23
.................
400
392,615
Connecticut
-
0.0%
Connecticut
Housing
Finance
Authority
,
Series
2021A,
Sub-Series
A-4,
RB,
0.30%, 11/15/22
.................
440
439,302
Florida
-
0.3%
County
of
Miami-Dade
Series
2020B,
RB,
0.38%, 04/01/23
....
7,500
7,366,556
Series
2021A,
RB,
0.71%, 10/01/23
....
1,000
967,490
8,334,046
Hawaii
-
0.2%
State
of
Hawaii
,
Series
2020GB,
GO,
0.43%, 10/01/22
.................
4,945
4,929,576
New
York
-
0.8%
City
of
New
York
,
Series
2021D,
GO,
0.43%, 08/01/22
.................
6,970
6,969,139
Long
Island
Power
Authority
Series
2021C,
RB,
0.36%, 03/01/23
....
3,885
3,822,482
Series
2020C,
RB,
0.76%, 03/01/23
....
2,860
2,820,456
New
York
State
Dormitory
Authority
,
Series
2022B,
RB,
2.01%, 03/15/23
.........
705
700,299
Port
Authority
of
New
York
&
New
Jersey
,
Series
2020AAA,
RB,
1.09%, 07/01/23
..
4,140
4,061,986
18,374,362
Other
-
3.4%
Deutsche
Bank
Spears/Lifers
Trust,
Various
States
,
Series
2021DBE-8901,
VRDN
(Deutsche
Bank
AG
LIQ)
,
2.52%, 08/04/22
(a)
(d)
...........................
43,500
43,500,000
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates,
Various
States
(a)(c)(d)
Series
2020-MIZ9030,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
2.59%, 08/01/22
...............
14,855
14,855,000
Series
2020-MIZ9029,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
2.59%, 08/01/22
...............
4,575
4,575,000
Series
2020-MIZ9032,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
2.72%, 08/01/22
...............
5,000
5,000,000
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
11
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
July
31,
2022
Security
Par
(000)
Par
(000)
Value
Other
(continued)
Series
2020-MIZ9035,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
2.72%, 08/01/22
...............
USD
5,000
$
5,000,000
Series
2020-MIZ9036,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
2.72%, 08/01/22
...............
4,000
4,000,000
Taxable
Municipal
Funding
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates,
Various
States
(a)(c)(d)
Series
2020-BTMFT-003,
RB,
VRDN
(Barclays
Bank
plc
LOC),
2.55%, 08/04/22
...............
900
900,000
Series
2020-11,
RB,
VRDN
(Barclays
Bank
plc
LOC),
2.55%, 08/04/22
........
5,430
5,430,000
83,260,000
Total
Municipal
Bonds
-
5.3%
(Cost:
$131,609,537)
.............................
131,168,558
Total
Long-Term
Investments
-
65.4%
(Cost:
$1,635,986,446)
...........................
1,613,576,670
Short-Term
Securities
Certificates
of
Deposit
-
10.4%
Yankee
-
10.4%
(e)
Bank
of
Montreal,
Chicago,
0.50%, 11/28/22
3,000
2,974,887
Barclays
Bank
plc,
New
York,
(SOFR
+
0.30%),
1.83%, 02/03/23
(b)
................
10,000
9,985,578
Bayerische
Landesbank
,
New
York
(LIBOR
USD
3
Month
+
0.16%),
2.93%, 01/27/23
(b)
..............
10,750
10,744,976
0.90%, 06/27/23
.................
12,000
11,697,069
BNP
Paribas
VPG
RHI
Holdings
LLC,
New
York,
0.20%, 09/08/22
.............
7,000
6,982,653
Canadian
Imperial
Bank
of
Commerce,
New
York
(SOFR
+
0.22%),
2.50%, 08/24/22
(b)
....
10,000
10,000,198
1.39%, 09/12/22
.................
5,000
4,993,969
(SOFR
+
0.30%),
2.58%, 01/06/23
(b)
....
3,000
2,997,693
Credit
Suisse
AG,
New
York
(b)
(SOFRINDX
+
0.42%),
2.70%, 07/10/23
.
7,500
7,479,107
(SOFRINDX
+
0.54%),
2.82%, 01/19/24
.
3,000
2,986,648
Kookmin
Bank,
New
York
(b)
(LIBOR
USD
3
Month
+
0.17%),
2.95%, 10/24/22
...............
5,000
5,003,371
(SOFR
+
0.30%),
2.58%, 01/30/23
.....
10,000
9,980,490
(SOFR
+
0.32%),
2.60%, 02/09/23
.....
15,000
14,970,200
Lloyds
Bank
Corporate
Markets
plc,
New
York,
0.40%, 12/01/22
.................
10,000
9,912,978
MUFG
Bank
Ltd.,
New
York
0.30%, 10/31/22
.................
7,500
7,452,101
(SOFR
+
0.28%),
1.81%, 01/24/23
(b)
....
5,000
4,992,194
Natixis
SA,
New
York,
2.13%, 11/18/22
....
4,400
4,388,163
Royal
Bank
of
Canada,
New
York
0.40%, 11/15/22
.................
10,000
9,924,658
(SOFR
+
0.25%),
2.53%, 01/11/23
(b)
....
12,000
11,982,905
4.08%, 07/14/23
.................
25,000
25,088,720
Standard
Chartered
Bank,
New
York
(b)
(SOFR
+
0.30%),
2.58%, 03/13/23
.....
15,000
14,967,630
(SOFR
+
0.35%),
1.88%, 05/01/23
.....
10,000
9,978,961
(SOFR
+
0.42%),
1.95%, 07/28/23
.....
5,000
4,984,700
Svenska
Handelsbanken
AB,
New
York
(b)
(SOFR
+
0.17%),
1.70%, 09/09/22
.....
20,000
19,997,241
(SOFR
+
0.19%),
1.72%, 10/27/22
.....
10,000
9,994,772
Security
Par
(000)
Par
(000)
Value
Yankee
(continued)
Toronto-Dominion
Bank
(The),
New
York
0.34%, 10/28/22
.................
USD
3,000
$
2,982,743
0.73%, 12/30/22
.................
4,000
3,960,908
2.69%, 04/28/23
.................
5,000
4,964,945
2.90%, 06/06/23
.................
10,000
9,932,734
256,303,192
Total
Certificates
of
Deposit
-
10.4%
(Cost:
$257,148,516)
.............................
256,303,192
Commercial
Paper
-
15.7%
ABN
AMRO
Funding
USA
LLC,
1.47%
,
10/03/22
(a)(f)
.....................
6,000
5,971,752
Alinghi
Funding
Co.
LLC
(a)(f)
3.67%,
01/12/23
.................
1,500
1,476,599
4.02%,
04/18/23
.................
6,500
6,326,913
AT&T,
Inc.,
0.92%
,
08/16/22
(a)(f)
..........
10,000
9,987,010
Atlantic
Asset
Securitization
LLC,
2.87%
,
10/19/22
(a)(f)
.....................
4,700
4,670,592
AutoZone,
Inc.,
2.35%
,
08/01/22
(f)
........
12,000
11,997,479
Bank
of
Montreal,
2.80%
,
05/12/23
.......
5,000
4,968,896
Brookfield
Infrastructure
Holdings
Canada,
Inc.,
3.01%
,
09/20/22
(f)
................
5,000
4,979,705
Brookfield
Renewable
Partners
LP,
2.72%
,
08/04/22
(f)
......................
1,000
999,576
Citigroup
Global
Markets,
Inc.,
0.45%
,
08/01/22
(f)
......................
5,000
4,999,042
Collateralized
Commercial
Paper
FLEX
Co.
LLC,
0.27%
,
08/18/22
(a)
............
12,000
11,986,006
Commonwealth
Bank
of
Australia,
0.31%
,
10/21/22
(a)(f)
.....................
5,000
4,968,873
Enel
Finance
America
LLC
(f)
0.40%,
08/03/22
(a)
................
10,000
9,996,478
0.36%,
09/07/22
(a)
................
10,000
9,970,189
0.40%,
09/13/22
.................
16,000
15,944,636
0.40%,
09/15/22
.................
2,000
1,992,736
0.52%,
10/21/22
(a)
................
13,800
13,701,983
2.90%,
12/05/22
(a)
................
5,000
4,935,769
Goldman
Sachs
International,
0.48%
,
11/10/22
(f)
......................
10,000
9,918,042
Hitachi
America
Capital
Ltd.,
2.55%
,
08/04/22
(a)
(f)
............................
22,500
22,490,685
LMA-Americas
LLC,
3.04%
,
11/08/22
(a)(f)
...
8,486
8,413,388
Macquarie
Bank
Ltd.
(a)(b)
(SOFR
+
0.18%),
1.71%,
09/20/22
.....
5,000
4,999,142
(SOFR
+
0.35%),
1.88%,
01/10/23
.....
10,000
9,991,059
National
Australia
Bank
Ltd.,
2.43%
,
02/01/23
(a)
(f)
............................
35,000
34,396,224
National
Bank
of
Canada,
0.34%
,
10/31/22
(a)(f)
5,000
4,963,693
Natixis
SA
(f)
2.95%,
11/01/22
.................
25,000
24,814,618
2.79%,
11/10/22
.................
14,315
14,195,072
Nordea
Bank
Abp
,
0.31%
,
10/21/22
(a)(f)
....
7,000
6,957,272
Skandinaviska
Enskilda
Banken
AB,
1.39%
,
09/12/22
(a)(f)
.....................
15,000
14,956,031
Societe
Generale
SA
(f)
0.33%,
08/31/22
(a)
................
7,000
6,984,959
0.24%,
09/19/22
.................
5,000
4,983,350
Suncor
Energy,
Inc.,
2.48%
,
09/12/22
(f)
....
7,500
7,474,688
Suncorp-
Metway
Ltd.
(f)
1.99%,
10/11/22
.................
9,500
9,444,873
2.10%,
11/07/22
.................
14,750
14,625,730
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Short
Obligations
Fund
12
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
July
31,
2022
Security
Par
(000)
Par
(000)
Value
Commercial
Paper
(continued)
Toronto-Dominion
Bank
(The),
0.20%
,
08/03/22
(a)(f)
.....................
USD
9,000
$
8,997,138
TransCanada
PipeLines
Ltd.,
3.07%
,
10/18/22
(a)
(f)
............................
7,807
7,756,235
UBS
AG
0.25%,
08/18/22
(f)
................
10,000
9,987,017
0.42%,
09/01/22
(a)(f)
...............
5,000
4,988,803
(SOFR
+
0.30%),
1.93%,
12/02/22
(a)(b)
..
3,000
2,997,779
Virginia
Electric
&
Power
Co.,
2.66%
,
08/22/22
(f)
......................
3,256
3,250,743
VW
Credit,
Inc.,
0.35%
,
08/23/22
(a)(f)
......
8,000
7,985,400
Waste
Management,
Inc.
(a)(f)
0.31%,
08/02/22
.................
3,845
3,843,919
0.31%,
09/08/22
.................
8,335
8,309,598
Total
Commercial
Paper
-
15.7%
(Cost:
$388,378,068)
.............................
387,599,692
Security
Shares
Shares
Value
Money
Market
Funds
-
0.0%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
1.76%
(g)(h)
.................
242,996
$
242,996
Total
Money
Market
Funds
-
0.0%
(Cost:
$242,996)
................................
242,996
Total
Repurchase
Agreements
-
8.3%
(Cost:
$203,500,000)
.............................
203,500,000
Total
Short-Term
Securities
-
34.4%
(Cost:
$849,269,580)
.............................
847,645,880
Total
Investments
-
99.8%
(Cost:
$2,485,256,026
)
...........................
2,461,222,550
Other
Assets
Less
Liabilities
-
0.2%
...................
4,548,988
Net
Assets
-
100.0%
..............................
$
2,465,771,538
(a)
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.
(b)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(c)
These
securities
are
short-term
floating
rate
certificates
issued
by
tender
option
bond
trusts
and
are
secured
by
the
underlying
municipal
bond
securities.
(d)
Variable
rate
security.
Rate
as
of
period
end
and
maturity
is
the
date
the
principal
owed
can
be
recovered
through
demand.
(e)
Issuer
is
a
U.S.
branch
of
a
foreign
domiciled
bank.
(f)
Rates
are
the
current
rate
or
a
range
of
current
rates
as
of
period
end.
(g)
Annualized
7-day
yield
as
of
period
end.
(h)
Affiliate
of
the
Fund.
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
year
ended
July
31,
2022
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
07/31/21
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/22
Shares
Held
at
07/31/22
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
..
$
541,627
$
-
$
(298,631)
$
-
$
-
$
242,996
242,996
$
2,052
$
-
-
-
(a)
Represents
net
amount
purchased
(sold).
For
Fund
compliance
purposes,
the
Fund's
industry
classifications
refer
to
one
or
more
of
the
industry
sub-classifications
used
by
one
or
more
widely
recognized
market
indexes
or
rating
group
indexes,
and/or
as
defined
by
the
investment
adviser.
These
definitions
may
not
apply
for
purposes
of
this
report,
which
may
combine
such
industry
sub-classifications
for
reporting
ease.
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
13
Schedule
of
Investments
(continued)
July
31,
2022
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.
.....
2.64
%
(a)
07/29/22
09/02/22
$
32,000
$
32,000
$
32,082,133
U.S.
Government
Sponsored
Agency
Obligations
and
Corporate/Debt
Obligations,
1.80%
to
5.75%,
due
01/30/25
to
10/12/2110
.......
$
53,097,218
$
36,065,715
2.82
(a)
07/29/22
10/02/22
5,000
5,000
5,025,458
Corporate/Debt
Obligation,
3.00%,
due
10/25/58
.........
7,858,362
6,000,000
$
-
$
-
$
37,000
$
42,065,715
$
-
$
-
BNP
Paribas
SA
......
2.65
(a)
07/29/22
11/01/22
25,000
25,000
25,174,826
Corporate/Debt
Obligations,
1.05%
to
11.50%,
due
09/27/23
to
05/25/67
.......
31,400,727
28,662,276
$
-
$
-
Citigroup
Global
Markets,
Inc.
.............
2.59
(a)
07/29/22
09/29/22
16,000
16,000
16,071,369
Corporate/Debt
Obligations,
3.08%
to
3.90%,
due
05/25/58
to
05/25/62
.........
19,037,189
17,120,000
2.61
(a)
07/29/22
10/29/22
6,000
6,000
6,040,020
Corporate/Debt
Obligations,
2.86%
to
4.00%,
due
12/17/35
to
02/26/57
.........
8,530,583
6,423,064
$
-
$
-
$
22,000
$
23,543,064
$
-
$
-
Credit
Suisse
Securities
(USA)
LLC
........
2.89
(a)
07/29/22
11/01/22
27,000
27,000
27,205,913
U.S.
Government
Sponsored
Agency
Obligations
and
Corporate/Debt
Obligations,
0.00%
to
6.89%,
due
03/15/23
to
09/27/66
.........
917,410,528
29,558,792
$
-
$
-
Goldman
Sachs
&
Co.
LLC
2.80
(a)
07/29/22
03/01/23
50,000
50,000
50,836,111
Corporate/Debt
Obligations,
1.16%
to
7.20%,
due
01/18/23
to
10/01/2118
.......
58,484,000
52,558,076
$
-
$
-
Mizuho
Securities
USA
LLC
.............
2.77
(a)
07/29/22
09/02/22
3,500
3,500
3,509,426
Corporate/Debt
Obligations,
5.00%
to
5.25%,
due
07/01/39
to
07/01/49
.........
3,220,000
3,749,817
2.87
(a)
07/29/22
10/28/22
19,000
19,000
19,137,840
Corporate/Debt
Obligations,
2.00%
to
5.71%,
due
03/20/25
to
04/25/51
.........
21,694,278
20,330,001
$
-
$
-
$
22,500
$
24,079,818
$
-
$
-
Wells
Fargo
Securities
LLC
.............
2.03
06/01/22
08/30/22
10,000
10,000
10,050,750
Corporate/Debt
Obligations,
0.45%
to
4.97%,
due
01/18/24
to
08/26/69
.........
13,283,613
10,700,000
2.65
07/27/22
09/22/22
10,000
10,000
10,041,958
Corporate/Debt
Obligations,
0.50%
to
3.35%,
due
02/25/43
to
08/17/54
.........
240,843,597
10,700,000
$
-
$
-
$
20,000
$
21,400,000
$
-
$
-
$
203,500
$
221,867,741
$
-
$
-
(a)
Variable
rate
security.
Rate
as
of
period
end
and
maturity
is
the
date
the
principal
owed
can
be
recovered
through
demand.
2022
BlackRock
Annual
Report
to
Shareholders
BlackRock
Short
Obligations
Fund
14
Schedule
of
Investments
(continued)
July
31,
2022
See
notes
to
financial
statements.
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund's
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund's
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
......................................
$
-
$
1,613,576,670
$
-
$
1,613,576,670
Short-Term
Securities
Certificates
of
Deposit
.....................................
-
256,303,192
-
256,303,192
Commercial
Paper
.......................................
-
387,599,692
-
387,599,692
Money
Market
Funds
......................................
242,996
-
-
242,996
Repurchase
Agreements
...................................
-
203,500,000
-
203,500,000
$
242,996
$
2,460,979,554
$
-
$
2,461,222,550
Statement
of
Assets
and
Liabilities

July
31,
2022
15
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
ASSETS
Investments,
at
value
-
unaffiliated
(a)
........................................................................................
$
2,257,479,554‌
Investments,
at
value
-
affiliated
(b)
.........................................................................................
242,996‌
Cash
.............................................................................................................
85,590‌
Repurchase
agreements,
at
value
(c)
.........................................................................................
203,500,000‌
Receivables:
-‌
Capital
shares
sold
...................................................................................................
20,436,437‌
Dividends
-
affiliated
.................................................................................................
509‌
Interest
-
unaffiliated
.................................................................................................
4,794,068‌
From
the
Manager
...................................................................................................
200‌
Prepaid
expenses
.....................................................................................................
67,419‌
Total
assets
.........................................................................................................
2,486,606,773‌
LIABILITIES
Payables:
-‌
Administration
fees
...................................................................................................
217,616‌
Capital
shares
redeemed
...............................................................................................
18,932,974‌
Income
dividend
distributions
............................................................................................
45,615‌
Investment
advisory
fees
..............................................................................................
627,619‌
Trustees'
and
Officer's
fees
.............................................................................................
3,607‌
Other
affiliate
fees
...................................................................................................
19,442‌
Service
fees
.......................................................................................................
229,944‌
Other
accrued
expenses
...............................................................................................
758,418‌
Total
liabilities
........................................................................................................
20,835,235‌
NET
ASSETS
........................................................................................................
$
2,465,771,538‌
NET
ASSETS
CONSIST
OF:
Paid-in
capital
........................................................................................................
$
2,493,658,876‌
Accumulated
loss
.....................................................................................................
(27,887,338‌)
NET
ASSETS
........................................................................................................
$
2,465,771,538‌
(a)
Investments,
at
cost
-
unaffiliated
........................................................................................
$
2,281,513,030‌
(b)
Investments,
at
cost
-
affiliated
..........................................................................................
$
242,996‌
(c)
Repurchase
agreements,
at
cost
.........................................................................................
$
203,500,000‌
Statement
of
Assets
and
Liabilities
(continued)
July
31,
2022
2022
BlackRock
Annual
Report
to
Shareholders
16
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
NET
ASSET
VALUE
Institutional
Net
assets
..........................................................................................................
$
1,382,185,752‌
Shares
outstanding
...................................................................................................
138,969,201‌
Net
asset
value
......................................................................................................
$
9.95‌
Shares
authorized
....................................................................................................
Unlimited
Par
value
..........................................................................................................
$
0.001‌
Investor
A
Net
assets
..........................................................................................................
$
1,029,382,411‌
Shares
outstanding
...................................................................................................
103,553,920‌
Net
asset
value
......................................................................................................
$
9.94‌
Shares
authorized
....................................................................................................
Unlimited
Par
value
..........................................................................................................
$
0.001‌
Class
K
Net
assets
..........................................................................................................
$
54,203,375‌
Shares
outstanding
...................................................................................................
5,441,821‌
Net
asset
value
......................................................................................................
$
9.96‌
Shares
authorized
....................................................................................................
Unlimited
Par
value
..........................................................................................................
$
0.001‌
Statement
of
Operations

Year
Ended
July
31,
2022
17
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
INVESTMENT
INCOME
Dividends
-
affiliated
.................................................................................................
$
2,052‌
Interest
-
unaffiliated
................................................................................................
23,345,330‌
Total
investment
income
.................................................................................................
23,347,382‌
EXPENSES
Investment
advisory
..................................................................................................
8,142,647‌
Service
-
class
specific
...............................................................................................
3,590,815‌
Transfer
agent
-
class
specific
..........................................................................................
1,285,319‌
Administration
.....................................................................................................
1,265,493‌
Administration
-
class
specific
..........................................................................................
674,328‌
Registration
.......................................................................................................
286,133‌
Accounting
services
..................................................................................................
85,980‌
Custodian
.........................................................................................................
52,590‌
Trustees
and
Officer
..................................................................................................
17,381‌
Miscellaneous
......................................................................................................
192,053‌
Total
expenses
.......................................................................................................
15,592,739‌
Less:
-‌
Administration
fees
waived
-
class
specific
................................................................................
(201,299‌)
Fees
waived
and/or
reimbursed
by
the
Manager
.............................................................................
(3,310,260‌)
Transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
-
class
specific
........................................................
(4,042‌)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
12,077,138‌
Net
investment
income
..................................................................................................
11,270,244‌
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
(34,366,030‌)
Net
realized
loss
from
investments
........................................................................................
(1,883,102‌)
Net
change
in
unrealized
depreciation
on
investments
...........................................................................
(32,482,928‌)
Net
realized
and
unrealized
loss
............................................................................................
(34,366,030‌)
NET
DECREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
.................................................................
$
(23,095,786‌)
Statements
of
Changes
in
Net
Assets

2022
BlackRock
Annual
Report
to
Shareholders
18
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
Year
Ended
July
31,
2022
2021
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..............................................................................
$
11,270,244‌
$
15,263,084‌
Net
realized
gain
(loss)
..............................................................................
(1,883,102‌)
340,828‌
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
(32,482,928‌)
(7,613,459‌)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.....................................................
(23,095,786‌)
7,990,453‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Institutional
....................................................................................
(7,713,116‌)
(9,436,714‌)
Investor
A
.....................................................................................
(2,819,166‌)
(4,338,985‌)
Class
K
.......................................................................................
(878,624‌)
(2,047,542‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(11,410,906‌)
(15,823,241‌)
CAPITAL
SHARE
TRANSACTIONS
Net
decrease
in
net
assets
derived
from
capital
share
transactions
...................................................
(2,083,370,727‌)
(69,141,507‌)
NET
ASSETS
Total
decrease
in
net
assets
............................................................................
(2,117,877,419‌)
(76,974,295‌)
Beginning
of
year
....................................................................................
4,583,648,957‌
4,660,623,252‌
End
of
year
........................................................................................
$
2,465,771,538‌
$
4,583,648,957‌
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
19
Financial
Highlights
BlackRock
Short
Obligations
Fund
Institutional
Year
Ended
July
31,
2022
2021
2020
2019
2018
Net
asset
value,
beginning
of
year
.....................
$
10.05
‌
$
10.07
‌
$
10.02
‌
$
9.99
‌
$
10.03
‌
Net
investment
income
(a)
...........................
0.04
0.04
0.17
0.26
0.18
Net
realized
and
unrealized
gain
(loss)
..................
(0.09)
(0.02)
0.06
0.03
(0.05)
Net
increase
(decrease)
from
investment
operations
..........
(0.05
)
0.02
‌
0.23
‌
0.29
‌
0.13
‌
Distributions
(b)
-
-
-
-
-
From
net
investment
income
........................
(0.05
)
(0.04
)
(0.18
)
(0.26
)
(0.17
)
From
net
realized
gain
.............................
-
‌
-
‌
(0.00
)
(c)
(0.00
)
(c)
(0.00
)
(c)
Total
distributions
.................................
(0.05
)
(0.04
)
(0.18
)
(0.26
)
(0.17
)
Net
asset
value,
end
of
year
.........................
$
9.95
‌
$
10.05
‌
$
10.07
‌
$
10.02
‌
$
9.99
‌
Total
Return
(d)
(0.51)%
-
-
-
-
Based
on
net
asset
value
............................
(0.51
)%
0.20
%
2.28
%
2.96
%
1.34
%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
...................................
0.36
%
0.36
%
0.43
%
0.45
%
0.60
%
Total
expenses
after
fees
waived
and/or
reimbursed
..........
0.26
%
0.26
%
0.30
%
0.26
%
0.28
%
Net
investment
income
.............................
0.45
%
0.39
%
1.69
%
2.59
%
1.75
%
Supplemental
Data
Net
assets,
end
of
year
(000)
..........................
$
1,382,186
‌
$
2,037,769
‌
$
1,951,914
‌
$
1,117,218
‌
$
70,512
‌
Portfolio
turnover
rate
..............................
36
%
67
%
40
%
18
%
87
%
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2022
BlackRock
Annual
Report
to
Shareholders
20
BlackRock
Short
Obligations
Fund
Investor
A
Year
Ended
July
31,
Period
from
03/09/18
(a)
to
07/31/18
2022
2021
2020
2019
Net
asset
value,
beginning
of
period
..................
$
10.05
‌
$
10.06
‌
$
10.01
‌
$
9.99
‌
$
9.99
‌
Net
investment
income
(b)
..........................
0.02
0.02
0.15
0.24
0.07
Net
realized
and
unrealized
gain
(loss)
.................
(0.11)
(0.01)
0.06
0.02
(0.00)
(c)
Net
increase
(decrease)
from
investment
operations
.........
(0.09
)
0.01
‌
0.21
‌
0.26
‌
0.07
‌
Distributions
(d)
-
-
-
-
-
From
net
investment
income
.......................
(0.02
)
(0.02
)
(0.16
)
(0.24
)
(0.07
)
From
net
realized
gain
............................
-
‌
-
‌
(0.00
)
(e)
(0.00
)
(e)
-
‌
Total
distributions
................................
(0.02
)
(0.02
)
(0.16
)
(0.24
)
(0.07
)
Net
asset
value,
end
of
period
.......................
$
9.94
‌
$
10.05
‌
$
10.06
‌
$
10.01
‌
$
9.99
‌
Total
Return
(f)
(0.85)%
-
-
-
-
Based
on
net
asset
value
...........................
(0.85
)%
0.06
%
2.08
%
2.63
%
0.73
%
(g)
Ratios
to
Average
Net
Assets
(h)
Total
expenses
..................................
0.61
%
0.61
%
0.59
%
0.64
%
0.78
%
(i)(j)
Total
expenses
after
fees
waived
and/or
reimbursed
.........
0.50
%
0.50
%
0.49
%
0.47
%
0.42
%
(j)
Net
investment
income
............................
0.19
%
0.16
%
1.47
%
2.37
%
1.87
%
(j)
Supplemental
Data
Net
assets,
end
of
period
(000)
.......................
$
1,029,382
‌
$
2,008,368
‌
$
2,585,292
‌
$
1,136,936
‌
$
621
‌
Portfolio
turnover
rate
.............................
36
%
67
%
40
%
18
%
87
%
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Amount
is
less
than
$0.005
per
share.
(d)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(e)
Amount
is
greater
than
$(0.005)
per
share.
(f)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(g)
Aggregate
total
return.
(h)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
(i)
Offering
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
0.84%
(j)
Annualized.
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
21
Financial
Highlights
BlackRock
Short
Obligations
Fund
Class
K
Year
Ended
July
31,
2022
2021
2020
2019
2018
Net
asset
value,
beginning
of
year
.....................
$
10.07
‌
$
10.08
‌
$
10.04
‌
$
10.01
‌
$
10.04
‌
Net
investment
income
(a)
...........................
0.04
0.04
0.18
0.26
0.18
Net
realized
and
unrealized
gain
(loss)
..................
(0.10)
(0.00)
(b)
0.05
0.04
(0.03)
Net
increase
(decrease)
from
investment
operations
..........
(0.06
)
0.04
‌
0.23
‌
0.30
‌
0.15
‌
Distributions
(c)
-
-
-
-
-
From
net
investment
income
........................
(0.05
)
(0.05
)
(0.19
)
(0.27
)
(0.18
)
From
net
realized
gain
.............................
-
‌
-
‌
(0.00
)
(b)
(0.00
)
(b)
(0.00
)
(b)
Total
distributions
.................................
(0.05
)
(0.05
)
(0.19
)
(0.27
)
(0.18
)
Net
asset
value,
end
of
year
.........................
$
9.96
‌
$
10.07
‌
$
10.08
‌
$
10.04
‌
$
10.01
‌
Total
Return
(d)
(0.55)%
-
-
-
-
Based
on
net
asset
value
............................
(0.55
)%
0.36
%
2.28
%
3.02
%
1.52
%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
...................................
0.32
%
0.31
%
0.33
%
0.45
%
0.53
%
Total
expenses
after
fees
waived
and/or
reimbursed
..........
0.20
%
0.20
%
0.20
%
0.20
%
0.20
%
Net
investment
income
.............................
0.39
%
0.41
%
1.84
%
2.64
%
1.78
%
Supplemental
Data
Net
assets,
end
of
year
(000)
..........................
$
54,203
‌
$
537,512
‌
$
123,417
‌
$
132,264
‌
$
82,549
‌
Portfolio
turnover
rate
..............................
36
%
67
%
40
%
18
%
87
%
(a)
Based
on
average
shares
outstanding.
(b)
Amount
is
greater
than
$(0.005)
per
share.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
fees
and
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds.
See
notes
to
financial
statements.
Notes
to
Financial
Statements
2022
BlackRock
Annual
Report
to
Shareholders
22
1.
ORGANIZATION
BlackRock
Funds
SM
(the
"Trust")
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"1940
Act"),
as
an
open-end
management
investment
company.
The Trust
is
organized
as
a
Massachusetts
business
trust.
BlackRock
Short
Obligations
Fund
(the
"Fund")
is
a
series
of
the
Trust.
The
Fund
is
classified
as
diversified.
The
Fund
offers
multiple
classes
of
shares.
All
classes
of
shares
have
identical
voting,
dividend,
liquidation
and
other
rights
and
are
subject
to
the
same
terms
and
conditions,
except
that
certain
classes
bear
expenses
related
to
the
shareholder
servicing
and
distribution
of
such
shares.
Institutional
and
Class
K
Shares
are
sold
only
to
certain
eligible
investors.
Investor
A
Shares
bear
certain
expenses
related
to
shareholder
servicing
of
such
shares.
Investor
A
Shares
are
generally
available
through
financial
intermediaries.
Each
class
has
exclusive
voting
rights
with
respect
to
matters
relating
to
its
shareholder
servicing
and
distribution
expenditures.
(a)
Investor
A
Shares
may
be
subject
to
a
CDSC
upon
redemption
of
shares
received
in
an
exchange
transaction
for
Investor A
Shares
of
a
fund
advised
by
BlackRock
Advisors,
LLC
(the
"Manager")
or
its
affiliates
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase
of
such
fund.
The
Fund,
together
with
certain
other
registered
investment
companies
advised
by
the
Manager or
its
affiliates,
is
included
in
a
complex
of
open-end
equity,
multi-asset,
index
and
money
market
funds
referred
to
as
the
BlackRock
Multi-Asset
Complex.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
("U.S.
GAAP"),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies:
Investment
Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Dividend
income
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
dates.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
dates
at
fair
value.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities,
is
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets.
Distributions:
Distributions
from
net
investment
income
are
declared
daily
and
paid
monthly.
Distributions
of
capital
gains
are
recorded
on
the
ex-dividend
dates
and
made
at
least
annually.
The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP.
Indemnifications:
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
The
Fund's
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
the
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to the
Fund
or
its
classes
are
charged
to
the
Fund
or
the
applicable
class.
Expenses
directly
related
to
the
Fund
and
other
shared
expenses
prorated
to
the
Fund
are
allocated
daily
to
each
class
based
on
its
relative
net
assets
or
other
appropriate
methods.
Other
operating
expenses
shared
by
several
funds,
including
other
funds
managed
by
the
Manager,
are
prorated
among
those
funds
on
the
basis
of
relative
net
assets
or
other
appropriate
methods.
3.
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS
Investment
Valuation
Policies:
The
Fund's
investments
are
valued
at
fair
value
(also
referred
to
as
"market
value"
within
the
financial
statements)
each
day
that
the
Fund
is
open
for
business
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Fund
determines
the
fair
values
of
its
financial
instruments
using
various
independent
dealers
or
pricing
services
under
policies
approved
by
the
Board
of
Trustees
of
the
Trust
(the
"Board").
If
a
security's
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value.
The
BlackRock
Global
Valuation
Methodologies
Committee
(the
"Global
Valuation
Committee")
is
the
committee
formed
by
management
to
develop
global
pricing
policies
and
procedures
and
to
oversee
the
pricing
function
for
all
financial
instruments.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
the
Fund's
assets
and
liabilities:
Fixed-income investments
for
which
market
quotations
are
readily
available
are
generally
valued
using
the
last
available
bid
price
or
current
market
quotations
provided
by
independent
dealers
or
third-party
pricing
services. Pricing
services
generally
value
fixed-income
securities
assuming
orderly
transactions
of
an
institutional
round
lot
size,
but
a
fund
may
hold
or
transact
in
such
securities
in
smaller,
odd
lot
sizes.
Odd
lots
may
trade
at
lower
prices
than
institutional
round
lots.
The
pricing
services
may
use
matrix
pricing
or
valuation
models
that
utilize
certain
inputs
and
assumptions
to
derive
values,
including
transaction
data
(e.g.,
recent
representative
bids
and
offers),
market
data, credit
quality
information,
perceived
market
movements,
news,
and
other
relevant
information.
Certain
fixed-income
securities,
including
asset-
backed
and
mortgage
related
securities
may
be
valued
based
on
valuation
models
that
consider
the
estimated
cash
flows
of
each
tranche
of
the
entity,
establish
a
benchmark
yield
and
develop
an
estimated
tranche
specific
spread
to
the
benchmark
yield
based
on
the
unique
attributes
of
the
tranche.
The
amortized
cost
method
of
valuation
may
be
used
with
respect
to
debt
obligations
with
sixty
days
or
less
remaining
to
maturity
unless
the
Manager
determines
such
method
does
not
represent
Share
Class
Initial
Sales
Charge
Contingent
Deferred
Sales
Charge
("CDSC")
Conversion
Privilege
Institutional
Shares
...........................................
No
No
None
Investor
A
Shares
............................................
No
No
(a)
None
Class
K
Shares
.............................................
No
No
None
Notes
to
Financial
Statements
(continued)
23
Notes
to
Financial
Statements
fair
value.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds) are
valued
at
that
day's
published net
asset
value
("NAV").
Repurchase
agreements
are
valued
at
amortized
cost,
which
approximates
market
value.
If
events
(e.g.,
market
volatility,
company
announcement or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the
Global
Valuation
Committee,
or
its
delegate,
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value
("Fair
Valued
Investments").
The
fair
valuation
approaches
that
may
be
used
by
the
Global
Valuation
Committee include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the
Global
Valuation
Committee,
or
its
delegate,
seeks
to
determine
the
price
that
the
Fund
might
reasonably
expect
to
receive
or
pay
from
the
current
sale
or
purchase
of
that
asset
or
liability
in
an
arm's-length
transaction.
Fair
value
determinations
shall
be
based
upon
all
available
factors
that
the
Global
Valuation
Committee,
or
its
delegate,
deems
relevant
and
consistent
with
the
principles
of
fair
value
measurement.
The
pricing
of
all
Fair
Valued
Investments
is
subsequently
reported
to
the
Board
or
a
committee
thereof
on
a
quarterly
basis.
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. Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the
Global
Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
privately
held
companies
or
funds
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
4.
SECURITIES
AND
OTHER
INVESTMENTS
Asset-Backed
and
Mortgage-Backed
Securities:
Asset-backed
securities
are
generally
issued
as
pass-through
certificates
or
as
debt
instruments.
Asset-backed
securities
issued
as
pass-through
certificates
represent
undivided
fractional
ownership
interests
in
an
underlying
pool
of
assets.
Asset-backed
securities
issued
as
debt
instruments,
which
are
also
known
as
collateralized
obligations,
are
typically
issued
as
the
debt
of
a
special
purpose
entity
organized
solely
for
the
purpose
of
owning
such
assets
and
issuing
such
debt.
Asset-backed
securities
are
often
backed
by
a
pool
of
assets
representing
the
obligations
of
a
number
of
different
parties.
The
yield
characteristics
of
certain
asset-backed
securities
may
differ
from
traditional
debt
securities.
One
such
major
difference
is
that
all
or
a
principal
part
of
the
obligations
may
be
prepaid
at
any
time
because
the
underlying
assets
(i.e.,
loans)
may
be
prepaid
at
any
time.
As
a
result,
a
decrease
in
interest
rates
in
the
market
may
result
in
increases
in
the
level
of
prepayments
as
borrowers,
particularly
mortgagors,
refinance
and
repay
their
loans.
An
increased
prepayment
rate
with
respect
to
an
asset-backed
security
will
have
the
effect
of
shortening
the
maturity
of
the
security.
In
addition,
a
fund
may
subsequently
have
to
reinvest
the
proceeds
at
lower
interest
rates.
If
a
fund
has
purchased
such
an
asset-backed
security
at
a
premium,
a
faster
than
anticipated
prepayment
rate
could
result
in
a
loss
of
principal
to
the
extent
of
the
premium
paid.
For
mortgage
pass-through
securities
(the
"Mortgage
Assets")
there
are
a
number
of
important
differences
among
the
agencies
and
instrumentalities
of
the
U.S.
Government
that
issue
mortgage-related
securities
and
among
the
securities
that
they
issue.
For
example,
mortgage-related
securities
guaranteed
by
Ginnie
Mae
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
Ginnie
Mae
and
such
guarantee
is
backed
by
the
full
faith
and
credit
of
the
United
States.
However,
mortgage-related
securities
issued
by
Freddie
Mac
and
Fannie
Mae,
including
Freddie
Mac
and
Fannie
Mae
guaranteed
mortgage
pass-through
certificates,
which
are
solely
the
obligations
of
Freddie
Mac
and
Fannie
Mae,
are
not
backed
by
or
entitled
to
the
full
faith
and
credit
of
the
United
States,
but
are
supported
by
the
right
of
the
issuer
to
borrow
from
the
U.S.
Treasury.
Non-agency
mortgage-backed
securities
are
securities
issued
by
non-governmental
issuers
and
have
no
direct
or
indirect
government
guarantees
of
payment
and
are
subject
to
various
risks.
Non-agency
mortgage
loans
are
obligations
of
the
borrowers
thereunder
only
and
are
not
typically
insured
or
guaranteed
by
any
other
person
or
entity.
The
ability
of
a
borrower
to
repay
a
loan
is
dependent
upon
the
income
or
assets
of
the
borrower.
A
number
of
factors,
including
a
general
economic
downturn,
acts
of
God,
terrorism,
social
unrest
and
civil
disturbances,
may
impair
a
borrower's
ability
to
repay
its
loans.
Repurchase
Agreements:
Repurchase
agreements
are
commitments
to
purchase
a
security
from
a
counterparty
who
agrees
to
repurchase
the
same
security
at
a
mutually
agreed
upon
date
and
price.
On
a
daily
basis,
the
counterparty
is
required
to
maintain
collateral
subject
to
the
agreement
and
in
value
no
less
than
the
agreed
upon
repurchase
amount.
Repurchase
agreements
may
be
traded
bilaterally,
in
a
tri-party
arrangement
or
may
be
centrally
cleared
through
a
sponsoring
agent.
Subject
to
the
custodial
undertaking
associated
with
a
tri-party
repurchase
arrangement
and
for
centrally
cleared
repurchase
agreements,
a
third-party
custodian
maintains
accounts
to
hold
collateral
for a
fund
and
its
counterparties.
Typically,
a
fund
and
counterparty
are
not
permitted
to
sell,
re-pledge
or
use
the
collateral
absent
a
default
by
the
counterparty
or the
fund,
respectively.
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
24
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.
For
such
services,
the
Fund
pays
the
Manager
a
monthly
fee
at
an
annual
rate
equal
to
the
following
percentages
of
the
average
daily
value
of
the
Fund's
net
assets:
The
Manager
entered
into
a
sub-advisory
agreement
with
BlackRock
International
Limited
("BIL"),
(the
"Sub-Adviser"),
an
affiliate
of
the
Manager.
The
Manager
pays
BIL
for
services
it
provides
for
that
portion
of
the
Fund
for
which
BIL
acts
as
sub-adviser,
a
monthly
fee
that
is
equal
to
a
percentage
of
the
investment
advisory
fees
paid
by
the
Fund
to
the
Manager.
Service
Fees:
The
Trust,
on behalf
of
the
Fund,
entered
into
a
Distribution
Agreement
and
a Distribution and
Service
Plan
with
BlackRock
Investments,
LLC
("BRIL"),
an
affiliate
of
the
Manager.
Pursuant
to
the
Distribution
and
Service
Plan
and
in
accordance
with
Rule
12b-1
under
the
1940
Act,
the
Fund
pays
BRIL
ongoing
service
fees.
The
fees
are
accrued
daily
and
paid
monthly
at
annual
rates
based
upon
the
average
daily
net
assets
of
the
relevant
share
class
of
the
Fund
as
follows:
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
servicing to
the
Fund.
The
ongoing
service fee
compensates
BRIL
and
each
broker-
dealer
for
providing
shareholder
servicing related
services
to
shareholders.
For
the year
ended
July
31,
2022,
the
class
specific
service
fees
borne
directly
by Investor
A
Shares
of
the
Fund
were
$3,590,815.
Administration:
The
Trust,
on
behalf
of
the
Fund,
entered
into
an
Administration
Agreement
with
the
Manager,
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
to
provide
administrative
services.
For
these
services,
the
Manager
receives
an
administration
fee
computed
daily
and
payable
monthly,
based
on
a
percentage
of
the
average
daily
net
assets
of
the
Fund.
The
administration
fee,
which
is
shown
as
administration
in
the
Statement
of
Operations,
is
paid
at
the
annual
rates
below.
In
addition,
the
Manager
charges
each
of
the
share
classes
an
administration
fee,
which
is
shown
as
administration -
class
specific
in
the
Statement
of
Operations,
at
an
annual
rate
of
0.02% of
the
average
daily
net
assets
of
each
respective
class.
For
the
year
ended
July
31,
2022, 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
year ended July
31,
2022,
the
Fund
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
billion
.........................................................................................................
0.25%
$1
billion
-
$3
billion
.....................................................................................................
0.24
$3
billion
-
$5
billion
.....................................................................................................
0.23
$5
billion
-
$10
billion
....................................................................................................
0.22
Greater
than
$10
billion
...................................................................................................
0.21
Share
Class
Service
Fees
Investor
A
..............................................................................................................
0.25‌%
Average
Daily
Net
Assets
Administration
Fees
First
$500
million
0.0425
%
$500
million
-
$1
billion
0.0400
$1
billion
-
$2
billion
0.0375
$2
billion
-
$4
billion
0.0350
$4
billion
-
$13
billion
0.0325
Greater
than
$13
billion
0.0300
Institutional
Investor
A
Class
K
Total
Administration
fees
-
class
specific
...............................
$
341,896‌
$
287,250‌
$
45,182‌
$
674,328‌
Notes
to
Financial
Statements
(continued)
25
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 year
ended
July
31,
2022,
the
Fund
reimbursed
the
Manager
the
following
amounts
for
costs
incurred
in
running
the
call
center,
which
are
included
in
transfer
agent
-
class
specific
in
the
Statement
of
Operations:
For
the
year ended
July
31,
2022,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Other
Fees:
For
the
year
ended
July
31,
2022
,
affiliates
received
CDSCs
of
$
30,008
for
Investor
A
Shares.
Expense
Limitations,
Waivers,
Reimbursements,
and
Recoupments:
The
Manager
contractually
agreed
to
waive
its
investment
advisory
fees
by
the
amount
of
investment
advisory
fees
the
Fund
pays
to
the
Manager
indirectly
through
its
investment
in
affiliated
money
market
funds
(the
"affiliated
money
market
fund
waiver")
through
June
30,
2023
.
The
contractual
agreement
may
be
terminated upon
90
days'
notice
by
a
majority
of
the
trustees
who
are
not
"interested
persons"
of
the
Trust,
as
defined
in
the
1940
Act
("Independent
Trustees
")
,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
The
amount
of
waivers
and/or
reimbursements
of
fees
and
expenses
made
pursuant
to
the
expense
limitation
s
described
below
will
be
reduced
by
the
amount
of
the
affiliated
money
market
fund
waiver. This
amount
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
For
the
year
ended
July
31,
2022,
the
amount
waived
was
$1,336.
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of
the
Fund's
assets
invested
in
affiliated
equity
and
fixed-income mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
June
30,
2023.
The
contractual
agreement
may
be
terminated
upon
90
days'
notice
by
a
majority
of
the
Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
For
the
year
ended
July
31,
2022,
there
were
no
fees
waived
by
the
Manager
pursuant
to
this
arrangement.
The
Manager
contractually
and/or
voluntarily
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
expenses,
excluding
interest
expense,
dividend
expense,
tax
expense,
acquired
fund
fees
and
expenses,
and
certain
other
fund
expenses,
which
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of
the
Fund's
business
("expense
limitation").
The
expense
limitations
as
a
percentage
of
average
daily
net
assets
are
as
follows:
For
the
year
ended
July
31,
2022,
the
Manager
waived
and/or
reimbursed
investment
advisory
fees
of
$3,308,924
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
by
the
Manager
-
class
specific,
respectively,
in
the
Statement
of
Operations.
For
the
year ended
July
31,
2022,
class
specific
expense
waivers
and/or
reimbursements were
as
follows:
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
"Order")
from
the
U.S.
Securities
and
Exchange
Commission
("SEC"),
the
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
"Interfund
Lending
Program"),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by
the
Fund's
investment
policies
and
restrictions.
The
Fund
is
currently
permitted
to
borrow
and
lend under
the
Interfund
Lending
Program.
A
lending
BlackRock
fund
may
lend
in
aggregate
up
to
15%
of
its
net
assets
but
may
not
lend
more
than
5%
of
its
net
assets
to
any
one
borrowing
fund
through
the
Interfund
Lending
Program.
A
borrowing
BlackRock
fund
may
not
borrow
through
the
Interfund
Lending
Program
or
from
any
other
source
more
than
33
1/3%
of
its
total
assets
(or
any
lower
threshold
provided
for
by
the fund's
investment
restrictions).
If
a
borrowing
BlackRock
fund's
total
outstanding
borrowings
exceed
10%
of
its
total
assets,
each
of
its
outstanding
interfund
loans
will
be
subject
to
collateralization
of
at
least
102%
of
the
outstanding
principal
value
of
the
loan.
All
interfund
loans
are
for
temporary
or
emergency
purposes
and
the
interest
rate
to
be
charged
will
be
the
average
of
the
highest
current
overnight
repurchase
agreement
rate
available
to
a
lending
fund
and
the
bank
loan
rate,
as
calculated
according
to
a
formula
established
by
the
Board.
During the
year
ended
July
31,
2022,
the
Fund
did
not
participate
in
the
Interfund
Lending
Program.
Institutional
Investor
A
Class
K
Total
Reimbursed
amount
.........................................
$
3,812‌
$
23,019‌
$
1,735‌
$
28,566‌
Institutional
Investor
A
Class
K
Total
Transfer
agent
fees
-
class
specific
...............................
$
700,524‌
$
581,079‌
$
3,716‌
$
1,285,319‌
Contractual
(a)
Voluntary
(b)
Institutional
................................................................................................
0.35‌%
0.30‌%
Investor
A
.................................................................................................
0.60‌
0.50‌
Class
K
..................................................................................................
0.30‌
0.20‌
(a)
The
Manager
has
agreed
not
to
reduce
or
discontinue
this
contractual
waiver
or
reimbursement
through
June
30,
2023,
unless
approved
by
the
Board,
including
a
majority
of
the
Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
(b)
The
voluntary
waiver
or
reimbursement
may
be
reduced
or
discontinued
at
any
time
without
notice.
Fund
Name/Share
Class
Administration
Fees
Waived
-
Class
Specific
Transfer
Agent
Fees
Waived
and/or
Reimbursed
-
Class
Specific
BlackRock
Short
Obligations
Fund
Investor
A
.....................................................................................
$
156,118‌
$
326‌
Class
K
......................................................................................
45,181‌
3,716‌
$
201,299‌
$
4,042‌
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
26
Trustees
and
Officers:
Certain
trustees
and/or
officers
of
the Trust are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Fund
reimburses
the
Manager
for
a
portion
of
the
compensation
paid
to
the
Fund's
Chief
Compliance
Officer,
which
is
included
in
Trustees and
Officer
in
the
Statement
of
Operations.
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
year ended
July
31,
2022,
the
purchase
and
sale
transactions
and
any
net
realized
gains
(losses)
with
an
affiliated
fund
in
compliance
with
Rule
17a-7
under
the
1940
Act
were
as
follows:
6.
PURCHASES
AND
SALES
For
the year
ended
July
31,
2022,
purchases
and
sales
of
investments,
including
paydowns
and
excluding
short-term
investments, were $740,566,871
and
$1,445,636,896,
respectively.
7.
INCOME
TAX
INFORMATION
It
is
the
Fund's
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required.
The
Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
the
Fund's
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
years
after
they
are
filed.
The
statutes
of
limitations
on
the
Fund's
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction.
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Fund
as
of
July
31,
2022,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Fund's
financial
statements.
The
tax
character
of
distributions
paid
was
as
follows:
As
of
July
31,
2022,
the
tax
components
of
accumulated earnings
(loss) were
as
follows:
(a)
Amounts
available
to
offset
future
realized
capital
gains.
(b)
The
difference
between
book-basis
and
tax-basis
net
unrealized
gains
was
attributable
primarily
to
the
amortization
methods
for
premiums
on
fixed
income
securities.
As
of
July
31,
2022, gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows:
8.
BANK
BORROWINGS
The
Trust, on
behalf
of
the
Fund,
along
with
certain
other
funds
managed
by
the
Manager
and
its
affiliates
("Participating
Funds"),
is
a
party
to
a
364-day,
$2.50
billion
credit
agreement
with
a
group
of
lenders.
Under
this
agreement,
the
Fund
may
borrow
to
fund
shareholder
redemptions.
Excluding
commitments
designated
for
certain
individual
funds,
the
Participating
Funds,
including
the
Fund,
can
borrow
up
to
an
aggregate
commitment
amount
of
$1.75
billion
at
any
time
outstanding,
subject
to
asset
coverage
and
other
limitations
as
specified
in
the
agreement.
The
credit
agreement
has
the
following
terms:
a
fee
of
0.10%
per
annum
on
unused
commitment
amounts
and
interest
at
a
rate
equal
to
the
higher
of
(a)
Overnight
Bank
Funding
Rate
("OBFR")
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.80%
per
annum,
(b)
the
Fed
Funds
rate
(but,
in
any
event,
not
less
than
0.00%)
in
effect
from
time
to
time
plus
0.80%
per
annum
on
amounts
borrowed
or
(c)
the
sum
of
(x)
Daily
Simple
Secured
Overnight
Financing
Rate
("SOFR")
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.10%
and
(y)
0.80%
per
annum. The
agreement
expires
in
April
2023
unless
extended
or
renewed. These
fees
were
allocated
among
such
funds
based
upon
portions
of
the
aggregate
commitment
available
to
them
and
relative
net
assets
of
Participating
Funds.
During
the
year ended
July
31,
2022,
the
Fund
did
not
borrow
under
the
credit
agreement.
Purchases
...............................................................................................................
$
-‌
Sales
...................................................................................................................
6,070,386‌
Net
Realized
Gain
..........................................................................................................
-‌
Fund
Name
Year
Ended
07/31/22
Year
Ended
07/31/21
BlackRock
Short
Obligations
Fund
Ordinary
income
...........................................................................................
$
11,410,906‌
$
15,823,241‌
Fund
Name
Undistributed
Ordinary
Income
Non-expiring
Capital
Loss
Carryforwards
(a)
Net
Unrealized
Gains
(Losses)
(b)
Total
BlackRock
Short
Obligations
Fund
................................................
$
112,842‌
$
(3,958,184‌)
$
(24,041,996‌)
$
(27,887,338‌)
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
BlackRock
Short
Obligations
Fund
......................................
$
2,485,264,546‌
$
414,019‌
$
(24,456,015‌)
$
(24,041,996‌)
Notes
to
Financial
Statements
(continued)
27
Notes
to
Financial
Statements
9.
PRINCIPAL
RISKS
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Fund
and its
investments.
The
Fund's
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject.
Market Risk:
The
Fund
may
be
exposed
to
prepayment
risk,
which
is
the
risk
that
borrowers
may
exercise
their
option
to
prepay
principal
earlier
than
scheduled
during
periods
of
declining
interest
rates,
which
would
force
the
Fund
to
reinvest
in
lower
yielding
securities. The
Fund
may
also
be
exposed
to
reinvestment
risk,
which
is
the
risk
that
income
from
the
Fund's
portfolio
will
decline
if
the Fund
invests
the
proceeds
from
matured,
traded
or
called
fixed-income
securities
at
market
interest
rates
that
are
below
the
Fund
portfolio's
current
earnings
rate.
Municipal
securities
are
subject
to
the
risk
that
litigation,
legislation
or
other
political
events,
local
business
or
economic
conditions,
credit
rating
downgrades,
or
the
bankruptcy
of
the
issuer
could
have
a
significant
effect
on
an
issuer's
ability
to
make
payments
of
principal
and/or
interest
or
otherwise
affect
the
value
of
such
securities.
Municipal
securities
can
be
significantly
affected
by
political
or
economic
changes,
including
changes
made
in
the
law
after
issuance
of
the
securities,
as
well
as
uncertainties
in
the
municipal
market
related
to,
taxation,
legislative
changes
or
the
rights
of
municipal
security
holders,
including
in
connection
with
an
issuer
insolvency.
Municipal
securities
backed
by
current
or
anticipated
revenues
from
a
specific
project
or
specific
assets
can
be
negatively
affected
by
the
discontinuance
of
the
tax
benefits
supporting
the
project
or
assets
or
the
inability
to
collect
revenues
for
the
project
or
from
the
assets.
Municipal
securities
may
be
less
liquid
than
taxable
bonds,
and
there
may
be
less
publicly
available
information
on
the
financial
condition
of
municipal
security
issuers
than
for
issuers
of
other
securities.
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.
Although
vaccines
have
been
developed
and
approved
for
use
by
various
governments,
the duration
of
this
pandemic
and
its
effects
cannot
be
determined
with
certainty.
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
securities
within
a
single
or
limited
number
of
market
sectors.
When
a
fund
concentrates
its
investments
in
this
manner,
it
assumes
the
risk
that
economic,
regulatory,
political
and
social
conditions
affecting
such
sectors
may
have
a
significant
impact
on
the
Fund
and
could
affect
the
income
from,
or
the
value
or
liquidity
of,
the
Fund's
portfolio.
Investment
percentages
in
specific
sectors
are
presented
in
the
Schedule
of
Investments.
The
Fund
invests
a
significant
portion
of
its
assets
in fixed-income securities and/or uses
derivatives tied
to
the
fixed-income
markets.
Changes
in
market
interest
rates
or
economic
conditions
may affect
the
value
and/or
liquidity
of
such investments.
Interest
rate
risk
is
the
risk
that
prices
of
bonds
and
other
fixed-income
securities
will
decrease
as
interest
rates
rise
and
increase
as
interest
rates
fall.
The
Fund
may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the recent
period
of
historically
low
interest rates. The
Federal
Reserve
has
recently
begun
to
raise
the
federal
funds
rate
as
part
of
its
efforts
to
address
inflation.
There
is
a
risk
that
interest
rates
will
continue
to
rise,
which
will
likely
drive
down
the
prices
of
bonds
and
other
fixed-income
securities,
and
could
negatively
impact
the
Fund's
performance.
Significant
Shareholder
Redemption
Risk:
Certain
shareholders
may
own
or
manage
a
substantial
amount
of
fund
shares
and/or
hold
their
fund
investments
for
a
limited
period
of
time.
Large
redemptions
of
fund
shares
by
these
shareholders
may
force
a
fund
to
sell
portfolio
securities,
which
may
negatively
impact
the
fund's
NAV,
increase
the
fund's
brokerage
costs,
and/or
accelerate
the
realization
of
taxable
income/gains
and
cause
the
fund
to
make
additional
taxable
distributions
to
shareholders.
LIBOR
Transition
Risk:
The
United
Kingdom's
Financial
Conduct
Authority
announced
a phase
out of
the
London
Interbank
Offered
Rate
("LIBOR").
Although
many
LIBOR
rates
ceased
to
be
published
or
no
longer are
representative
of
the
underlying
market
they
seek
to
measure
after
December
31,
2021,
a
selection
of
widely
used
USD
LIBOR
rates
will
continue
to
be
published
through
June
2023
in
order
to
assist
with
the
transition.
The
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.
Notes
to
Financial
Statements
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
28
10.
CAPITAL
SHARE
TRANSACTIONS
Transactions
in
capital
shares
for
each
class
were
as
follows:
11.
SUBSEQUENT
EVENTS
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Fund
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Year
Ended
07/31/22
Year
Ended
07/31/21
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
BlackRock
Short
Obligations
Fund
Institutional
Shares
sold
.............................................
114,224,094‌
$
1,142,376,140‌
247,485,820‌
$
2,489,815,066‌
Shares
issued
in
reinvestment
of
distributions
........................
767,621‌
7,659,950‌
937,297‌
9,428,257‌
Shares
redeemed
.........................................
(178,737,510‌)
(1,787,698,175‌)
(239,626,408‌)
(2,409,957,835‌)
(63,745,795‌)
$
(637,662,085‌)
8,796,709‌
$
89,285,488‌
Investor
A
Shares
sold
.............................................
25,742,576‌
$
257,490,025‌
165,508,079‌
$
1,664,147,730‌
Shares
issued
in
reinvestment
of
distributions
........................
282,059‌
2,806,502‌
429,816‌
4,322,097‌
Shares
redeemed
.........................................
(122,382,390‌)
(1,224,503,828‌)
(223,005,219‌)
(2,241,711,772‌)
(96,357,755‌)
$
(964,207,301‌)
(57,067,324‌)
$
(573,241,945‌)
Class
K
Shares
sold
.............................................
3,694,922‌
$
37,110,163‌
95,119,414‌
$
958,591,149‌
Shares
issued
in
reinvestment
of
distributions
........................
64,966‌
652,160‌
182,522‌
1,838,893‌
Shares
redeemed
.........................................
(51,710,806‌)
(519,263,664‌)
(54,151,443‌)
(545,615,092‌)
(47,950,918‌)
$
(481,501,341‌)
41,150,493‌
$
414,814,950‌
(208,054,468‌)
$
(2,083,370,727‌)
(7,120,122‌)
$
(69,141,507‌)
Report
of
Independent
Registered
Public
Accounting
Firm
29
Report
of
Independent
Registered
Public
Accounting
Firm
/
Important
Tax
Information
To
the
Board
of
Trustees
of
BlackRock
Funds
SM
and
Shareholders
of
BlackRock
Short
Obligations
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
BlackRock
Short
Obligations
Fund
(one
of
the
funds
constituting
BlackRock
Funds
SM
referred
to
hereafter
as
the
"Fund")
as
of
July
31,
2022,
the
related
statement
of
operations
for
the
year
ended
July
31,
2022,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
July
31,
2022,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
(collectively
referred
to
as
the
"financial
statements").
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
July
31,
2022,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
July
31,
2022
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund's
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund's
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
July
31,
2022
by
correspondence
with
the
custodian,
transfer
agent
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/PricewaterhouseCoopers
LLP
Philadelphia,
Pennsylvania
September
23,
2022
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
2000.
Important
Tax
Information
(unaudited)
2022
BlackRock
Annual
Report
to
Shareholders
30
The
Fund
hereby
designates
the
following
amount,
or
maximum
amount
allowable
by
law,
as
interest
income
eligible
to
be
treated
as
a
Section
163(j)
interest
dividend
for
the
fiscal
year
ended
July
31,
2022:
The
Fund
hereby
designates
the
following
amount,
or
maximum
amount
allowable
by
law,
as
interest-related
dividends
eligible
for
exemption
from
U.S.
withholding
tax
for
nonresident
aliens
and
foreign
corporations
for
the
fiscal
year
ended
July
31,
2022:
Fund
Name
Interest
Dividends
BlackRock
Short
Obligations
Fund
.......................................................................................
$
11,343,664‌
Fund
Name
Interest-Related
Dividends
BlackRock
Short
Obligations
Fund
.......................................................................................
$
6,882,811‌
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
31
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
The
Board
of
Trustees
(the
"Board,"
the
members
of
which
are
referred
to
as
"Board
Members")
of
BlackRock
Funds
(the
"Trust")
met
on
April
20,
2022
(the
"April
Meeting")
and
May
10-11,
2022
(the
"May
Meeting")
to
consider
the
approval
to
continue
the
investment
advisory
agreement
(the
"Advisory
Agreement")
between
the
Trust,
on
behalf
of
BlackRock
Short
Obligations
Fund
(the
"Fund"),
and
BlackRock
Advisors,
LLC
(the
"Manager"),
the
Fund's
investment
advisor.
The
Board
also
considered
the
approval
to
continue
the
sub-advisory
agreement
(the
"Sub-Advisory
Agreement")
between
the
Manager
and
BlackRock
International
Limited
(the
"Sub-Advisor")
with
respect
to
the
Fund.
The
Manager
and
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
who
are
not
"interested
persons"
of
the
Trust,
as
defined
in
the
1940
Act,
are
considered
independent
Board
members
(the
"Independent
Board
Members").
The
Board's
consideration
entailed
a
year-long
deliberative
process
during
which
the
Board
and
its
committees
assessed
BlackRock's
various
services
to
the
Fund,
including
through
the
review
of
written
materials
and
oral
presentations,
and
the
review
of
additional
information
provided
in
response
to
requests
from
the
Independent
Board
Members.
The
Board
had
four
quarterly
meetings
per
year,
each
typically
extending
for
two
days,
as
well
as
additional
ad
hoc
meetings
and
executive
sessions
throughout
the
year,
as
needed.
The
committees
of
the
Board
similarly
met
throughout
the
year.
The
Board
also
had
an
additional
one-day
meeting
to
consider
specific
information
surrounding
the
renewal
of
the
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
and
the
Independent
Board
Members
presented
BlackRock
with
questions
and
requests
for
additional
information.
BlackRock
responded
to
these
questions
and
requests
with
additional
written
information
in
advance
of
the
May
Meeting.
At
the
May
Meeting,
the
Board
concluded
its
assessment
of,
among
other
things:
(a)
the
nature,
extent
and
quality
of
the
services
provided
by
BlackRock;
(b)
the
investment
performance
of
the
Fund
as
compared
to
its
Performance
Peers
and
to
other
metrics,
as
applicable;
(c)
the
advisory
fee
and
the
estimated
cost
of
the
services
and
estimated
profits
realized
by
BlackRock
and
its
affiliates
from
their
relationship
with
the
Fund;
(d)
the
Fund's
fees
and
expenses
compared
to
its
Expense
Peers;
(e)
the
existence
and
sharing
of
potential
economies
of
scale;
(f)
any
fall-out
benefits
to
BlackRock
and
its
affiliates
as
a
result
of
BlackRock's
relationship
with
the
Fund;
and
(g)
other
factors
deemed
relevant
by
the
Board
Members.
The
Board
also
considered
other
matters
it
deemed
important
to
the
approval
process,
such
as
other
payments
made
to
BlackRock
or
its
affiliates
relating
to
securities
lending
and
cash
management,
and
BlackRock's
services
related
to
the
valuation
and
pricing
of
Fund
portfolio
holdings.
The
Board
noted
the
willingness
of
BlackRock's
personnel
to
engage
in
open,
candid
discussions
with
the
Board.
The
Board
Members
evaluated
the
information
available
to
it
on
a
fund-by-fund
basis.
The
following
paragraphs
provide
more
information
about
some
of
the
primary
factors
that
were
relevant
to
the
Board's
decision.
The
Board
Members
did
not
identify
any
particular
information,
or
any
single
factor
as
determinative,
and
each
Board
Member
may
have
attributed
different
weights
to
the
various
items
and
factors
considered.
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
32
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,
2021,
as
compared
to
its
Performance
Peers.
Broadridge
ranks
funds
in
quartiles,
ranging
from
first
to
fourth,
where
first
is
the
most
desirable
quartile
position
and
fourth
is
the
least
desirable.
In
connection
with
its
review,
the
Board
received
and
reviewed
information
regarding
the
investment
performance
of
the
Fund
as
compared
to
its
Performance
Peers.
The
Board
and
its
Performance
Oversight
Committee
regularly
review
and
meet
with
Fund
management
to
discuss
the
performance
of
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-,
three-
and
five-year
periods
reported,
the
Fund
ranked
in
the
third,
second,
and
second
quartiles,
respectively,
against
its
Performance
Peers.
The
Board
and
BlackRock
reviewed
the
Fund's
underperformance
relative
to
its
Performance
Peers
during
the
applicable
period.
C.
Consideration
of
the
Advisory/Management
Fees
and
the
Estimated
Cost
of
the
Services
and
Estimated
Profits
Realized
by
BlackRock
and
its
Affiliates
from
their
Relationship
with
the
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).
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,
2021
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
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
(continued)
33
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
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
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
the
Fund's
Expense
Peers.
The
Board
also
noted
that
the
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Fund
were
to
decrease,
the
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
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.
In
addition,
the
Board
noted
that
BlackRock
has
voluntarily
agreed
to
a
cap
to
further
limit
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
At
the
May
Meeting,
as
a
result
of
the
discussions
that
occurred
during
the
April
Meeting,
and
as
a
culmination
of
the
Board's
year-long
deliberative
process,
the
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
the
Advisory
Agreement
between
the
Manager
and
the
Trust,
on
behalf
of
the
Fund,
for
a
one-year
term
ending
June
30,
2023,
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,
2023.
Based
upon
its
evaluation
of
all
of
the
aforementioned
factors
in
their
totality,
as
well
as
other
information,
the
Board,
including
the
Independent
Board
Members,
was
satisfied
that
the
terms
of
the
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.
Trustee
and
Officer
Information
2022
BlackRock
Annual
Report
to
Shareholders
34
Independent
Trustees
(a)
Name
Year
of
Birth
(b)
Position(s)
Held
(Length
of
Service)
(c)
Principal
Occupation(s)
During
Past
Five
Years
Number
of
BlackRock-Advised
Registered
Investment
Companies
("RICs")
Consisting
of
Investment
Portfolios
("Portfolios")
Overseen
Public
Company
and
Other
Investment
Company
Directorships
Held
During
Past
Five
Years
Mark
Stalnecker
1951
Chair
of
the
Board
(Since
2019)
and
Trustee
(Since
2015)
Chief
Investment
Officer,
University
of
Delaware
from
1999
to
2013;
Trustee
and
Chair
of
the
Finance
and
Investment
Committees,
Winterthur
Museum
and
Country
Estate
from
2005
to
2016;
Member
of
the
Investment
Committee,
Delaware
Public
Employees'
Retirement
System
since
2002;
Member
of
the
Investment
Committee,
Christiana
Care
Health
System
from
2009
to
2017;
Member
of
the
Investment
Committee,
Delaware
Community
Foundation
from
2013
to
2014;
Director
and
Chair
of
the
Audit
Committee,
SEI
Private
Trust
Co.
from
2001
to
2014.
28
RICs
consisting
of
162
Portfolios
None
Susan
J.
Carter
1956
Trustee
(Since
2016)
Trustee,
Financial
Accounting
Foundation
from
2017
to
2021;
Advisory
Board
Member,
Center
for
Private
Equity
and
Entrepreneurship
at
Tuck
School
of
Business
from
1997
to
2021;
Director,
Pacific
Pension
Institute
from
2014
to
2018;
Senior
Advisor,
Commonfund
Capital,
Inc.
("CCI")
(investment
adviser)
in
2015;
Chief
Executive
Officer,
CCI
from
2013
to
2014;
President
&
Chief
Executive
Officer,
CCI
from
1997
to
2013;
Advisory
Board
Member,
Girls
Who
Invest
from
2015
to
2018
and
Board
Member
thereof
since
2018;
Advisory
Board
Member,
Bridges
Fund
Management
since
2016;
Practitioner
Advisory
Board
Member,
Private
Capital
Research
Institute
("PCRI")
since
2017;
Lecturer
in
the
Practice
of
Management,
Yale
School
of
Management
since
2019;
Advisor
to
Finance
Committee,
Altman
Foundation
since
2020;
Investment
Committee
Member,
Tostan
since
2021.
28
RICs
consisting
of
162
Portfolios
None
Collette
Chilton
1958
Trustee
(Since
2015)
Chief
Investment
Officer,
Williams
College
since
2006;
Chief
Investment
Officer,
Lucent
Asset
Management
Corporation
from
1998
to
2006;
Director,
Boys
and
Girls
Club
of
Boston
since
2017;
Director,
B1
Capital
since
2018;
Director,
David
and
Lucile
Packard
Foundation
since
2020.
28
RICs
consisting
of
162
Portfolios
None
Neil
A.
Cotty
1954
Trustee
(Since
2016)
Bank
of
America
Corporation
from
1996
to
2015,
serving
in
various
senior
finance
leadership
roles,
including
Chief
Accounting
Officer
from
2009
to
2015,
Chief
Financial
Officer
of
Global
Banking,
Markets
and
Wealth
Management
from
2008
to
2009,
Chief
Accounting
Officer
from
2004
to
2008,
Chief
Financial
Officer
of
Consumer
Bank
from
2003
to
2004,
Chief
Financial
Officer
of
Global
Corporate
Investment
Bank
from
1999
to
2002.
28
RICs
consisting
of
162
Portfolios
None
Lena
G.
Goldberg
1949
Trustee
(Since
2019)
Director,
Charles
Stark
Draper
Laboratory,
Inc.
since
2013;
Senior
Lecturer,
Harvard
Business
School
from
2008
to
2021;
FMR
LLC/Fidelity
Investments
(financial
services)
from
1996
to
2008,
serving
in
various
senior
roles
including
Executive
Vice
President
-
Strategic
Corporate
Initiatives
and
Executive
Vice
President
and
General
Counsel;
Partner,
Sullivan
&
Worcester
LLP
from
1985
to
1996
and
Associate
thereof
from
1979
to
1985.
28
RICs
consisting
of
162
Portfolios
None
Henry
R.
Keizer
1956
Trustee
(Since
2019)
Director,
Park
Indemnity
Ltd.
(captive
insurer)
since
2010;
Director,
MUFG
Americas
Holdings
Corporation
and
MUFG
Union
Bank,
N.A.
(financial
and
bank
holding
company)
from
2014
to
2016;
Director,
American
Institute
of
Certified
Public
Accountants
from
2009
to
2011;
Director,
KPMG
LLP
(audit,
tax
and
advisory
services)
from
2004
to
2005
and
2010
to
2012;
Director,
KPMG
International
in
2012,
Deputy
Chairman
and
Chief
Operating
Officer
thereof
from
2010
to
2012
and
U.S.
Vice
Chairman
of
Audit
thereof
from
2005
to
2010;
Global
Head
of
Audit,
KPMGI
(consortium
of
KPMG
firms)
from
2006
to
2010;
Director,
YMCA
of
Greater
New
York
from
2006
to
2010.
28
RICs
consisting
of
162
Portfolios
Hertz
Global
Holdings
(car
rental);
GrafTech
International
Ltd.
(materials
manufacturing);
Montpelier
Re
Holdings,
Ltd.
(publicly
held
property
and
casualty
reinsurance)
from
2013
to
2015;
WABCO
(commercial
vehicle
safety
systems)
from
2015
to
2020;
Sealed
Air
Corp.
(packaging)
from
2015
to
2021.
Cynthia
A.
Montgomery
1952
Trustee
(Since
2007)
Professor,
Harvard
Business
School
since
1989.
28
RICs
consisting
of
162
Portfolios
Newell
Rubbermaid,
Inc.
(manufacturing)
from
1995
to
2016
Trustee
and
Officer
Information
(continued)
35
Trustee
and
Officer
Information
Name
Year
of
Birth
(b)
Position(s)
Held
(Length
of
Service)
(c)
Principal
Occupation(s)
During
Past
Five
Years
Number
of
BlackRock-Advised
Registered
Investment
Companies
("RICs")
Consisting
of
Investment
Portfolios
("Portfolios")
Overseen
Public
Company
and
Other
Investment
Company
Directorships
Held
During
Past
Five
Years
Donald
C.
Opatrny
1952
Trustee
(Since
2019)
Director,
Athena
Capital
Advisors
LLC
(investment
management
firm)
from
2013
to
2020;
Trustee,
Vice
Chair,
Member
of
the
Executive
Committee
and
Chair
of
the
Investment
Committee,
Cornell
University
from
2004
to
2019;
President
and
Trustee,
the
Center
for
the
Arts,
Jackson
Hole
from
2011
to
2018;
Member
of
the
Board
and
Investment
Committee,
University
School
from
2007
to
2018;
Trustee,
Artstor
(a
Mellon
Foundation
affiliate)
from
2010
to
2015;
Member
of
the
Investment
Committee,
Mellon
Foundation
from
2009
to
2015;
President,
Trustee
and
Member
of
the
Investment
Committee,
The
Aldrich
Contemporary
Art
Museum
from
2007
to
2014;
Trustee
and
Chair
of
the
Investment
Committee,
Community
Foundation
of
Jackson
Hole
since
2014;
Member
of
Affordable
Housing
Supply
Board
of
Jackson,
Wyoming
since
2017;
Member,
Investment
Funds
Committee,
State
of
Wyoming
since
2017;
Trustee,
Phoenix
Art
Museum
since
2018;
Trustee,
Arizona
Community
Foundation
and
Member
of
Investment
Committee
since
2020.
28
RICs
consisting
of
162
Portfolios
None
Joseph
P.
Platt
1947
Trustee
(Since
2007)
General
Partner,
Thorn
Partners,
LP
(private
investments)
since
1998;
Director,
WQED
Multi-Media
(public
broadcasting
not-for-
profit)
since
2001;
Chair,
Basic
Health
International
(non-profit)
since
2015.
28
RICs
consisting
of
162
Portfolios
Greenlight
Capital
Re,
Ltd.
(reinsurance
company);
Consol
Energy
Inc.
Kenneth
L.
Urish
1951
Trustee
(Since
2007)
Managing
Partner,
Urish
Popeck
&
Co.,
LLC
(certified
public
accountants
and
consultants)
since
1976;
Past-Chairman
of
the
Professional
Ethics
Committee
of
the
Pennsylvania
Institute
of
Certified
Public
Accountants
and
Committee
Member
thereof
since
2007;
Member
of
External
Advisory
Board,
The
Pennsylvania
State
University
Accounting
Department
since
founding
in
2001;
Principal,
UP
Strategic
Wealth
Investment
Advisors,
LLC
since
2013;
Trustee,
The
Holy
Family
Institute
from
2001
to
2010;
President
and
Trustee,
Pittsburgh
Catholic
Publishing
Associates
from
2003
to
2008;
Director,
Inter-Tel
from
2006
to
2007;
Member,
Advisory
Board,
ESG
Competent
Boards
since
2020.
28
RICs
consisting
of
162
Portfolios
None
Claire
A.
Walton
1957
Trustee
(Since
2016)
Chief
Operating
Officer
and
Chief
Financial
Officer
of
Liberty
Square
Asset
Management,
LP
from
1998
to
2015;
General
Partner
of
Neon
Liberty
Capital
Management,
LLC
since
2003;
Director,
Boston
Hedge
Fund
Group
from
2009
to
2018;
Director,
Woodstock
Ski
Runners
since
2013;
Director,
Massachusetts
Council
on
Economic
Education
from
2013
to
2015.
28
RICs
consisting
of
162
Portfolios
None
Independent
Trustees
(a)
(continued)
Trustee
and
Officer
Information
(continued)
2022
BlackRock
Annual
Report
to
Shareholders
36
Interested
Trustees
(a)(d)
(a)
The
address
of
each
Trustee
is
c/o
BlackRock,
Inc.,
55
East
52nd
Street,
New
York,
New
York
10055.
(b)
Independent
Trustees
serve
until
their
resignation,
retirement,
removal
or
death,
or
until
December
31
of
the
year
in
which
they
turn
75.
The
Board
may
determine
to
extend
the
terms
of
Independent
Trustees
on
a
case-by-case
basis,
as
appropriate.
(c)
Following
the
combination
of
Merrill
Lynch
Investment
Managers,
L.P.
("MLIM")
and
BlackRock,
Inc.
in
September
2006,
the
various
legacy
MLIM
and
legacy
BlackRock
fund
boards
were
realigned
and
consolidated
into
three
new
fund
boards
in
2007.
Furthermore,
effective
January
1,
2019,
three
BlackRock
Fund
Complexes
were
realigned
and
consolidated
into
two
BlackRock
Fund
Complexes.
As
a
result,
although
the
chart
shows
the
year
that
each
Independent
Trustee
joined
the
Board,
certain
Independent
Trustees
first
became
members
of
the
boards
of
other
BlackRock-advised
Funds,
legacy
MLIM
funds
or
legacy
BlackRock
funds
as
follows:
Cynthia
A.
Montgomery,
1994;
Joseph
P.
Platt,
1999;
Kenneth
L.
Urish,
1999;
Lena
G.
Goldberg,
2016;
Henry
R.
Keizer,
2016;
Donald
C.
Opatrny,
2015.
(d)
Mr.
Fairbairn
and
Mr.
Perlowski
are
both
"interested
persons,"
as
defined
in
the
1940
Act,
of
the
Trust
based
on
their
positions
with
BlackRock,
Inc.
and
its
affiliates.
Mr.
Fairbairn
and
Mr.
Perlowski
are
also
board
members
of
the
BlackRock
Fixed-Income
Complex.
(e)
Mr.
Perlowski
is
also
a
trustee
of
the
BlackRock
Credit
Strategies
Fund
and
BlackRock
Private
Investments
Fund.
Name
Year
of
Birth
(b)
Position(s)
Held
(Length
of
Service)
(c)
Principal
Occupation(s)
During
Past
Five
Years
Number
of
BlackRock-Advised
Registered
Investment
Companies
("RICs")
Consisting
of
Investment
Portfolios
("Portfolios")
Overseen
Public
Company
and
Other
Investment
Company
Directorships
Held
During
Past
Five
Years
Robert
Fairbairn
1965
Trustee
(Since
2018)
Vice
Chairman
of
BlackRock,
Inc.
since
2019;
Member
of
BlackRock's
Global
Executive
and
Global
Operating
Committees;
Co-Chair
of
BlackRock's
Human
Capital
Committee;
Senior
Managing
Director
of
BlackRock,
Inc.
from
2010
to
2019;
oversaw
BlackRock's
Strategic
Partner
Program
and
Strategic
Product
Management
Group
from
2012
to
2019;
Member
of
the
Board
of
Managers
of
BlackRock
Investments,
LLC
from
2011
to
2018;
Global
Head
of
BlackRock's
Retail
and
iShares
®
businesses
from
2012
to
2016.
97
RICs
consisting
of
261
Portfolios
None
John
M.
Perlowski
(e)
1964
Trustee
(Since
2015);
President
(Since
2018)
and
Chief
Executive
Officer
(Since
2010)
Managing
Director
of
BlackRock,
Inc.
since
2009;
Head
of
BlackRock
Global
Accounting
and
Product
Services
since
2009;
Advisory
Director
of
Family
Resource
Network
(charitable
foundation)
since
2009.
99
RICs
consisting
of
263
Portfolios
None
Trustee
and
Officer
Information
(continued)
37
Trustee
and
Officer
Information
Officers
Who
Are
Not
Trustees
(a)
(a)
The
address
of
each
Officer
is
c/o
BlackRock,
Inc.,
55
East
52nd
Street,
New
York,
New
York
10055.
(b)
Officers
of
the
Trust
serve
at
the
pleasure
of
the
Board.
Further
information
about
the
Trust's
Trustees
and
Officers
is
available
in
the
Trust's
Statement
of
Additional
Information,
which
can
be
obtained
without
charge
by
calling
(800)
441-7762.
Name
Year
of
Birth
(b)
Position(s)
Held
(Length
of
Service)
Principal
Occupation(s)
During
Past
Five
Years
Roland
Villacorta
1971
Vice
President
(Since
2022)
Managing
Director
of
BlackRock,
Inc.
since
2022;
Head
of
Global
Cash
Management
and
Head
of
Securities
Lending
within
BlackRock's
Portfolio
Management
Group
since
2022;
Member
of
BlackRock's
Global
Operating
Committee
since
2022;
Head
of
Portfolio
Management
in
BlackRock's
Financial
Markets
Advisory
Group
within
BlackRock
Solutions
from
2008
to
2015;
Previously
Mr.
Villacorta
was
Co-Head
of
BlackRock
Solutions'
Portfolio
Analytics
Group
and
Co-Head
of
Fixed
Income
within
BlackRock's
Risk
&
Quantitative
Analysis
Group.
Jennifer
McGovern
1977
Vice
President
(Since
2014)
Managing
Director
of
BlackRock,
Inc.
since
2016;
Director
of
BlackRock,
Inc.
from
2011
to
2015;
Head
of
Americas
Product
Development
and
Governance
for
BlackRock's
Global
Product
Group
since
2019;
Head
of
Product
Structure
and
Oversight
for
BlackRock's
U.S.
Wealth
Advisory
Group
from
2013
to
2019.
Trent
Walker
1974
Chief
Financial
Officer
(Since
2021)
Managing
Director
of
BlackRock,
Inc.
since
September
2019;
Executive
Vice
President
of
PIMCO
from
2016
to
2019;
Senior
Vice
President
of
PIMCO
from
2008
to
2015;
Treasurer
from
2013
to
2019
and
Assistant
Treasurer
from
2007
to
2017
of
PIMCO
Funds,
PIMCO
Variable
Insurance
Trust,
PIMCO
ETF
Trust,
PIMCO
Equity
Series,
PIMCO
Equity
Series
VIT,
PIMCO
Managed
Accounts
Trust,
2
PIMCO-sponsored
interval
funds
and
21
PIMCO-sponsored
closed-end
funds.
Jay
M.
Fife
1970
Treasurer
(Since
2007)
Managing
Director
of
BlackRock,
Inc.
since
2007.
Charles
Park
1967
Chief
Compliance
Officer
(Since
2014)
Anti-Money
Laundering
Compliance
Officer
for
certain
BlackRock-advised
Funds
from
2014
to
2015;
Chief
Compliance
Officer
of
BlackRock
Advisors,
LLC
and
the
BlackRock-advised
Funds
in
the
BlackRock
Multi-Asset
Complex
and
the
BlackRock
Fixed-Income
Complex
since
2014;
Principal
of
and
Chief
Compliance
Officer
for
iShares
®
Delaware
Trust
Sponsor
LLC
since
2012
and
BlackRock
Fund
Advisors
("BFA")
since
2006;
Chief
Compliance
Officer
for
the
BFA-advised
iShares
®
exchange
traded
funds
since
2006;
Chief
Compliance
Officer
for
BlackRock
Asset
Management
International
Inc.
since
2012.
Lisa
Belle
1968
Anti-Money
Laundering
Compliance
Officer
(Since
2019)
Managing
Director
of
BlackRock,
Inc.
since
2019;
Global
Financial
Crime
Head
for
Asset
and
Wealth
Management
of
JP
Morgan
from
2013
to
2019;
Managing
Director
of
RBS
Securities
from
2012
to
2013;
Head
of
Financial
Crimes
for
Barclays
Wealth
Americas
from
2010
to
2012.
Janey
Ahn
1975
Secretary
(Since
2019)
Managing
Director
of
BlackRock,
Inc.
since
2018;
Director
of
BlackRock,
Inc.
from
2009
to
2017.
Effective
December
31,
2021,
Bruce
R.
Bond
retired
as
a
Trustee
of
the
Trust.
Effective
March
31,
2022,
Thomas
Callahan
resigned
as
a
Vice
President
of
the
Trust
and
effective
May
10,
2022,
Roland
Villacorta
was
appointed
as
a
Vice
President
of
the
Trust.
Additional
Information
2022
BlackRock
Annual
Report
to
Shareholders
38
General
Information
Quarterly
performance,
semi-annual
and
annual
reports,
current
net
asset
value
and
other
information
regarding
the
Fund
may
be
found
on
BlackRock's
website,
which
can
be
accessed
at
blackrock.com
.
Any
reference
to
BlackRock's
website
in
this
report
is
intended
to
allow
investors
public
access
to
information
regarding
the
Fund
and
does
not,
and
is
not
intended
to,
incorporate
BlackRock's
website
in
this
report.
Householding
The
Fund
will
mail
only
one
copy
of
shareholder
documents,
including
prospectuses,
annual
and
semi-annual
reports,
Rule
30e-3
notices
and
proxy
statements,
to
shareholders
with
multiple
accounts
at
the
same
address.
This
practice
is
commonly
called
"householding"
and
is
intended
to
reduce
expenses
and
eliminate
duplicate
mailings
of
shareholder
documents.
Mailings
of
your
shareholder
documents
may
be
householded
indefinitely
unless
you
instruct
us
otherwise.
If
you
do
not
want
the
mailing
of
these
documents
to
be
combined
with
those
for
other
members
of
your
household,
please
call
the
Fund at
(800)
441-7762.
Availability
of
Quarterly
Schedule
of
Investments
The
Fund
files
its
complete
schedule
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to
its
reports
on
Form
N-PORT.
The
Fund's
Form
N-PORT is
available
on
the
SEC's
website
at
sec.gov
.
Additionally,
the
Fund
makes
its
portfolio
holdings
for
the
first
and
third
quarters
of
each
fiscal
year
available
at
blackrock.com/
fundreports
.
Availability
of
Proxy
Voting
Policies,
Procedures and
Voting
Records
A
description
of
the
policies
and
procedures
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
information
about
how
the
Fund
voted
proxies
relating
to
securities
held
in
the
Fund's
portfolio
during
the
most
recent
12-month
period
ended
June
30 is
available
without
charge,
upon
request (1)
by
calling
(800)
441-
7762
;
(2)
on
the
BlackRock
website
at
blackrock.com
;
and
(3)
on
the
SEC's
website
at
sec.gov
.
BlackRock's
Mutual
Fund
Family
BlackRock
offers
a
diverse
lineup
of
open-end
mutual
funds
crossing
all
investment
styles
and
managed
by
experts
in
equity,
fixed-income
and
tax-exempt
investing.
Visit
blackrock.com
for
more
information.
Shareholder
Privileges
Account
Information
Call
us
at
(800)
441-7762
from
8:00
AM
to
6:00
PM
ET
on
any
business
day
to
get
information
about
your
account
balances,
recent
transactions
and
share
prices.
You
can
also
visit
blackrock.com
for
more
information.
Automatic
Investment
Plans
Investor
class
shareholders
who
want
to
invest
regularly
can
arrange
to
have
$50
or
more
automatically
deducted
from
their
checking
or
savings
account
and
invested
in
any
of
the
BlackRock
funds.
Systematic
Withdrawal
Plans
Investor
class
shareholders
can
establish
a
systematic
withdrawal
plan
and
receive
periodic
payments
of
$50
or
more
from
their
BlackRock
funds,
as
long
as
their
account
balance
is
at
least
$10,000.
Retirement
Plans
Shareholders
may
make
investments
in
conjunction
with
Traditional,
Rollover,
Roth,
Coverdell,
Simple
IRAs,
SEP
IRAs
and
403(b)
Plans.
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.
Additional
Information
(continued)
39
Additional
Information
BlackRock
does
not
sell
or
disclose
to
non-affiliated
third
parties
any
non-public
personal
information
about
its
Clients,
except
as
permitted
by
law
or
as
is
necessary
to
respond
to
regulatory
requests
or
to
service
Client
accounts.
These
non-affiliated
third
parties
are
required
to
protect
the
confidentiality
and
security
of
this
information
and
to
use
it
only
for
its
intended
purpose.
We
may
share
information
with
our
affiliates
to
service
your
account
or
to
provide
you
with
information
about
other
BlackRock
products
or
services
that
may
be
of
interest
to
you.
In
addition,
BlackRock
restricts
access
to
non-public
personal
information
about
its
Clients
to
those
BlackRock
employees
with
a
legitimate
business
need
for
the
information.
BlackRock
maintains
physical,
electronic
and
procedural
safeguards
that
are
designed
to
protect
the
non-public
personal
information
of
its
Clients,
including
procedures
relating
to
the
proper
storage
and
disposal
of
such
information.
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Adviser
BlackRock
International
Limited
Edinburgh,
EH3
8JB
United
Kingdom
Accounting
Agent
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
Transfer
Agent
BNY
Mellon
Investment
Servicing
(US)
Inc.
Wilmington,
DE
19809
Custodians
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
The
Bank
of
New
York
Mellon
New
York,
NY
10286
Independent
Registered
Public
Accounting
Firm
PricewaterhouseCoopers
LLP
Philadelphia,
PA
19103
Distributor
BlackRock
Investments,
LLC
New
York,
NY
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
2022
BlackRock
Annual
Report
to
Shareholders
40
Currency
Abbreviation
USD
United
States
Dollar
Portfolio
Abbreviation
COP
Certificates
of
Participation
GO
General
Obligation
Bonds
LIBOR
London
Interbank
Offered
Rate
LIQ
Liquidity
Agreement
LOC
Letter
of
Credit
RB
Revenue
Bonds
SOFR
Secured
Overnight
Financing
Rate
VRDN
Variable
Rate
Demand
Notes
Want
to
know
more?
blackrock.com
|
800-441-7762
This
report
is
intended
for
current
holders.
It
is
not
authorized
for
use
as
an
offer
of
sale
or
a
solicitation
of
an
offer
to
buy
shares
of
the
Fund
unless
preceded
or
accompanied
by
the
Fund's
current
prospectus.
Past
performance
results
shown
in
this
report
should
not
be
considered
a
representation
of
future
performance.
Investment
returns
and
principal
value
of
shares
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Statements
and
other
information
herein
are
as
dated
and
are
subject
to
change.
SHORTS-7/22-AR
Item 2 - Code of Ethics --
The registrant (or the "Fund") has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The
registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.
Item 3 - Audit Committee Financial Expert - The registrant's board of directors (the "board of directors"), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
Neil A. Cotty
Henry R. Keizer
Kenneth L. Urish
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.
The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
Item 4 - Principal Accountant Fees and Services
The following table presents fees billed by Pricewaterhouse Coopers ("PwC") in each of the last two fiscal years for the services rendered to the Fund:
(a) Audit Fees
(b) Audit-Related Fees1
(c) Tax Fees2
(d) All Other Fees
Entity Name
Current Fiscal Year End
Previous Fiscal Year End
Current Fiscal Year End
Previous Fiscal Year End
Current Fiscal Year End
Previous Fiscal Year End
Current Fiscal Year End
Previous Fiscal Year End
BlackRock Short Obligations Fund
$23,300
$23,300
$0
$0
$0
$0
$0
$0
The following table presents fees billed by PwC that were required to be approved by the registrant's audit committee (the "Committee") for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the "Investment Adviser" or "BlackRock") and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund ("Affiliated Service Providers"):
Current Fiscal Year End
Previous Fiscal Year End
(b) Audit-Related Fees1
$0
$0
(c) Tax Fees2
$0
$0
(d) All Other Fees3
$0
$0
1
The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.
2
The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.
3
Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by PwC with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC's auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis ("general pre-approval"). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.


(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g)
The aggregate non-audit fees, defined as the sum of the fees shown under "Audit-Related Fees," "Tax Fees" and "All Other Fees," paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:
Entity Name
Current Fiscal Year End
Previous Fiscal Year End
BlackRock Short Obligations Fund
$0
$0
(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and
the Affiliated Service Providers
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence.
(i) - Not Applicable
(j) - Not Applicable
Item 5 - Audit Committee of Listed Registrant - Not Applicable
Item 6 - Investments

(a) The registrant's Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies - Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - There have been no material changes to these procedures.
Item 11 - Controls and Procedures
(a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act")) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 12 - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies -Not Applicable
Item 13 - Exhibits attached hereto
(a)(1) Code of Ethics - See Item 2
(a)(2) Section 302 Certifications are attached
section302
(a)(3)
Any written solicitation to purchase securities under Rule 23c-1 - Not Applicable
(a)(4)
Change in Registrant's independent public accountant - Not Applicable
(b) Section 906 Certifications are attached
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: September 23, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Funds
SM
Date: September 23, 2022
By: /s/ Trent Walker
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Funds
SM
Date: September 23, 2022