Blackrock Funds
10/03/2024 | Press release | Distributed by Public on 10/03/2024 08:58
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 FundsSM
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 FundsSM, 50 Hudson Yards, New York, NY 10001
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 07/31/2024
Date of reporting period: 07/31/2024
Item 1 - Reports to Stockholders
(a) The Reports to Shareholders are attached herewith.
BlackRock Short Obligations Fund
Institutional Shares | BISOX
Annual Shareholder Report - July 31, 2024
This annual shareholder report contains important information about BlackRock Short Obligations Fund (the "Fund") for the period of August 1, 2023 to July 31, 2024.You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441-7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
|
Class name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Institutional Shares
|
$28
|
0.27%
|
How did the Fund perform last year?
-
Although inflation came down over the course of the annual period, it remained above the U.S. Federal Reserve's (the "Fed") stated 2% target.
-
The Fed responded by keeping short-term interest rates in a range of 5.25% to 5.50%.
-
The central bank's decision to keep rates elevated translated to attractive yields on short-term debt.
What contributed to performance?
During the reporting period, the Fund's duration and yield curve positioning contributed positively. The Fund's sector allocations were also a source of positive contribution.
What detracted from performance?
At a time of positive returns for the broader asset class, no aspect of the Fund's positioning was a significant detractor.
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 performance
Cumulative performance: August 1, 2014through July 31, 2024
Initial investment of $10,000
|
Institutional Shares
|
Bloomberg U.S. Aggregate Bond Index
|
ICE BofA 6-Month U.S. Treasury Bill Index
|
|
|
Aug 14
|
10,004
|
10,110
|
10,002
|
|
Sep 14
|
10,008
|
10,042
|
10,003
|
|
Oct 14
|
10,012
|
10,140
|
10,003
|
|
Nov 14
|
10,016
|
10,212
|
10,003
|
|
Dec 14
|
10,011
|
10,222
|
10,005
|
|
Jan 15
|
10,025
|
10,436
|
10,008
|
|
Feb 15
|
10,020
|
10,338
|
10,009
|
|
Mar 15
|
10,024
|
10,386
|
10,009
|
|
Apr 15
|
10,029
|
10,349
|
10,013
|
|
May 15
|
10,035
|
10,324
|
10,014
|
|
Jun 15
|
10,040
|
10,211
|
10,016
|
|
Jul 15
|
10,045
|
10,282
|
10,015
|
|
Aug 15
|
10,050
|
10,268
|
10,016
|
|
Sep 15
|
10,055
|
10,337
|
10,026
|
|
Oct 15
|
10,059
|
10,339
|
10,023
|
|
Nov 15
|
10,065
|
10,311
|
10,022
|
|
Dec 15
|
10,061
|
10,278
|
10,027
|
|
Jan 16
|
10,067
|
10,420
|
10,035
|
|
Feb 16
|
10,074
|
10,494
|
10,039
|
|
Mar 16
|
10,103
|
10,590
|
10,048
|
|
Apr 16
|
10,110
|
10,630
|
10,055
|
|
May 16
|
10,118
|
10,633
|
10,056
|
|
Jun 16
|
10,125
|
10,824
|
10,068
|
|
Jul 16
|
10,143
|
10,893
|
10,071
|
|
Aug 16
|
10,152
|
10,880
|
10,072
|
|
Sep 16
|
10,160
|
10,874
|
10,081
|
|
Oct 16
|
10,169
|
10,791
|
10,087
|
|
Nov 16
|
10,178
|
10,535
|
10,089
|
|
Dec 16
|
10,192
|
10,550
|
10,094
|
|
Jan 17
|
10,201
|
10,571
|
10,102
|
|
Feb 17
|
10,221
|
10,642
|
10,107
|
|
Mar 17
|
10,221
|
10,636
|
10,107
|
|
Apr 17
|
10,232
|
10,719
|
10,115
|
|
May 17
|
10,253
|
10,801
|
10,121
|
|
Jun 17
|
10,264
|
10,790
|
10,131
|
|
Jul 17
|
10,275
|
10,837
|
10,141
|
|
Aug 17
|
10,286
|
10,934
|
10,155
|
|
Sep 17
|
10,297
|
10,882
|
10,162
|
|
Oct 17
|
10,299
|
10,888
|
10,172
|
|
Nov 17
|
10,311
|
10,874
|
10,180
|
|
Dec 17
|
10,316
|
10,924
|
10,191
|
|
Jan 18
|
10,319
|
10,798
|
10,202
|
|
Feb 18
|
10,333
|
10,696
|
10,208
|
|
Mar 18
|
10,338
|
10,764
|
10,223
|
|
Apr 18
|
10,354
|
10,684
|
10,238
|
|
May 18
|
10,383
|
10,761
|
10,255
|
|
Jun 18
|
10,392
|
10,747
|
10,272
|
|
Jul 18
|
10,412
|
10,750
|
10,289
|
|
Aug 18
|
10,443
|
10,819
|
10,309
|
|
Sep 18
|
10,463
|
10,749
|
10,323
|
|
Oct 18
|
10,475
|
10,664
|
10,342
|
|
Nov 18
|
10,497
|
10,728
|
10,363
|
|
Dec 18
|
10,513
|
10,925
|
10,386
|
|
Jan 19
|
10,559
|
11,041
|
10,410
|
|
Feb 19
|
10,581
|
11,035
|
10,429
|
|
Mar 19
|
10,617
|
11,247
|
10,454
|
|
Apr 19
|
10,630
|
11,250
|
10,476
|
|
May 19
|
10,664
|
11,449
|
10,501
|
|
Jun 19
|
10,698
|
11,593
|
10,530
|
|
Jul 19
|
10,720
|
11,619
|
10,550
|
|
Aug 19
|
10,753
|
11,920
|
10,578
|
|
Sep 19
|
10,773
|
11,856
|
10,596
|
|
Oct 19
|
10,793
|
11,892
|
10,623
|
|
Nov 19
|
10,811
|
11,886
|
10,635
|
|
Dec 19
|
10,829
|
11,878
|
10,653
|
|
Jan 20
|
10,858
|
12,106
|
10,669
|
|
Feb 20
|
10,874
|
12,324
|
10,697
|
|
Mar 20
|
10,782
|
12,251
|
10,752
|
|
Apr 20
|
10,882
|
12,469
|
10,753
|
|
May 20
|
10,926
|
12,527
|
10,750
|
|
Jun 20
|
10,946
|
12,606
|
10,752
|
|
Jul 20
|
10,965
|
12,795
|
10,756
|
|
Aug 20
|
10,971
|
12,691
|
10,757
|
|
Sep 20
|
10,966
|
12,684
|
10,759
|
|
Oct 20
|
10,971
|
12,628
|
10,761
|
|
Nov 20
|
10,975
|
12,752
|
10,763
|
|
Dec 20
|
10,979
|
12,769
|
10,764
|
|
Jan 21
|
10,982
|
12,678
|
10,765
|
|
Feb 21
|
10,985
|
12,495
|
10,767
|
|
Mar 21
|
10,977
|
12,338
|
10,769
|
|
Apr 21
|
10,979
|
12,436
|
10,770
|
|
May 21
|
10,993
|
12,477
|
10,771
|
|
Jun 21
|
10,985
|
12,564
|
10,770
|
|
Jul 21
|
10,987
|
12,705
|
10,771
|
|
Aug 21
|
10,989
|
12,681
|
10,772
|
|
Sep 21
|
10,992
|
12,571
|
10,773
|
|
Oct 21
|
10,983
|
12,567
|
10,773
|
|
Nov 21
|
10,974
|
12,604
|
10,773
|
|
Dec 21
|
10,977
|
12,572
|
10,774
|
|
Jan 22
|
10,958
|
12,301
|
10,768
|
|
Feb 22
|
10,949
|
12,164
|
10,767
|
|
Mar 22
|
10,909
|
11,826
|
10,764
|
|
Apr 22
|
10,902
|
11,377
|
10,767
|
|
May 22
|
10,920
|
11,451
|
10,780
|
|
Jun 22
|
10,896
|
11,271
|
10,772
|
|
Jul 22
|
10,931
|
11,547
|
10,782
|
|
Aug 22
|
10,947
|
11,220
|
10,797
|
|
Sep 22
|
10,933
|
10,735
|
10,814
|
|
Oct 22
|
10,956
|
10,596
|
10,832
|
|
Nov 22
|
11,004
|
10,986
|
10,871
|
|
Dec 22
|
11,046
|
10,937
|
10,918
|
|
Jan 23
|
11,113
|
11,273
|
10,955
|
|
Feb 23
|
11,135
|
10,982
|
10,986
|
|
Mar 23
|
11,171
|
11,260
|
11,045
|
|
Apr 23
|
11,230
|
11,329
|
11,083
|
|
May 23
|
11,270
|
11,205
|
11,110
|
|
Jun 23
|
11,298
|
11,165
|
11,163
|
|
Jul 23
|
11,363
|
11,158
|
11,209
|
|
Aug 23
|
11,419
|
11,086
|
11,260
|
|
Sep 23
|
11,452
|
10,805
|
11,310
|
|
Oct 23
|
11,511
|
10,634
|
11,361
|
|
Nov 23
|
11,581
|
11,116
|
11,420
|
|
Dec 23
|
11,654
|
11,541
|
11,479
|
|
Jan 24
|
11,704
|
11,510
|
11,529
|
|
Feb 24
|
11,739
|
11,347
|
11,570
|
|
Mar 24
|
11,789
|
11,452
|
11,621
|
|
Apr 24
|
11,838
|
11,162
|
11,668
|
|
May 24
|
11,888
|
11,352
|
11,723
|
|
Jun 24
|
11,949
|
11,459
|
11,772
|
|
Jul 24
|
12,023
|
11,727
|
11,832
|
See "Average annual total returns" for additional information on fund performance.
Average annual total returns
|
Average Annual Total Returns
|
1 Year
|
5 Years
|
10 Years
|
|
Institutional Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.80%
|
2.32%
|
1.86%
|
|
Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.10
|
0.19
|
1.61
|
|
ICE BofA 6-Month U.S. Treasury Bill Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.58
|
2.32
|
1.70
|
Key Fund statistics
|
Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
$1,133,264,082
|
|
Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
239
|
|
Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
$1,584,361
|
|
Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
34%
|
The Fund has added the Bloomberg U.S. Aggregate Bond Index in response to new regulatory requirements.
On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 6-Month U.S. Treasury Bill Index (the "Index"). Index data prior to March 1, 2021 is for the Index's standard pricing time of 3pm. Index data from March 1, 2021 through November 30, 2023 is for a custom 4pm pricing variant of the Index. Index returns beginning on December 1, 2023 reflect the Index's new standard pricing time of 4pm. The change of the Index's standard pricing time from 3pm to 4pm resulted in the discontinuation of the custom 4pm pricing variant used from March 1, 2021 through November 30, 2023.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.comfor more recent performance information.
What did the Fund invest in?
(as of July 31, 2024)
Portfolio composition
Maturity allocation
|
Investment Type
|
Percent of Net Assets
|
|
Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
37.0%
|
|
Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.5
|
|
U.S. Treasury Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
1.6
|
|
Municipal Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
0.3
|
|
Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
0.2
|
|
Short-Term Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
56.0
|
|
Liabilities in Excess of Other Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
(0.6)
|
|
Percent of Net Assets
|
|
|
1-7 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
7.5%
|
|
8-14 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
6.1
|
|
15-30 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
3.9
|
|
31-60 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
8.5
|
|
61-90 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
10.6
|
|
91-120 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
10.2
|
|
121-150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
1.5
|
|
>150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
51.7
|
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund's prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports 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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, ICE Data Indices, LLC, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
© 2024 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
BlackRock Short Obligations Fund
Institutional Shares | BISOX
Annual Shareholder Report - July 31, 2024
BISOX-07/24-AR
BlackRock Short Obligations Fund
Investor A Shares | BASOX
Annual Shareholder Report - July 31, 2024
This annual shareholder report contains important information about BlackRock Short Obligations Fund (the "Fund") for the period of August 1, 2023 to July 31, 2024.You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441-7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
|
Class name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Investor A Shares
|
$52
|
0.50%
|
How did the Fund perform last year?
-
Although inflation came down over the course of the annual period, it remained above the U.S. Federal Reserve's (the "Fed") stated 2% target.
-
The Fed responded by keeping short-term interest rates in a range of 5.25% to 5.50%.
-
The central bank's decision to keep rates elevated translated to attractive yields on short-term debt.
What contributed to performance?
During the reporting period, the Fund's duration and yield curve positioning contributed positively. The Fund's sector allocations were also a source of positive contribution.
What detracted from performance?
At a time of positive returns for the broader asset class, no aspect of the Fund's positioning was a significant detractor.
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 performance
Cumulative performance: August 1, 2014through July 31, 2024
Initial investment of $10,000
|
Investor A Shares
|
Bloomberg U.S. Aggregate Bond Index
|
ICE BofA 6-Month U.S. Treasury Bill Index
|
|
|
Aug 14
|
10,001
|
10,110
|
10,002
|
|
Sep 14
|
9,993
|
10,042
|
10,003
|
|
Oct 14
|
9,994
|
10,140
|
10,003
|
|
Nov 14
|
9,996
|
10,212
|
10,003
|
|
Dec 14
|
9,997
|
10,222
|
10,005
|
|
Jan 15
|
9,999
|
10,436
|
10,008
|
|
Feb 15
|
10,001
|
10,338
|
10,009
|
|
Mar 15
|
10,003
|
10,386
|
10,009
|
|
Apr 15
|
10,005
|
10,349
|
10,013
|
|
May 15
|
10,007
|
10,324
|
10,014
|
|
Jun 15
|
10,010
|
10,211
|
10,016
|
|
Jul 15
|
10,012
|
10,282
|
10,015
|
|
Aug 15
|
10,004
|
10,268
|
10,016
|
|
Sep 15
|
10,016
|
10,337
|
10,026
|
|
Oct 15
|
10,018
|
10,339
|
10,023
|
|
Nov 15
|
10,021
|
10,311
|
10,022
|
|
Dec 15
|
10,014
|
10,278
|
10,027
|
|
Jan 16
|
10,018
|
10,420
|
10,035
|
|
Feb 16
|
10,022
|
10,494
|
10,039
|
|
Mar 16
|
10,047
|
10,590
|
10,048
|
|
Apr 16
|
10,052
|
10,630
|
10,055
|
|
May 16
|
10,057
|
10,633
|
10,056
|
|
Jun 16
|
10,072
|
10,824
|
10,068
|
|
Jul 16
|
10,077
|
10,893
|
10,071
|
|
Aug 16
|
10,083
|
10,880
|
10,072
|
|
Sep 16
|
10,089
|
10,874
|
10,081
|
|
Oct 16
|
10,105
|
10,791
|
10,087
|
|
Nov 16
|
10,112
|
10,535
|
10,089
|
|
Dec 16
|
10,112
|
10,550
|
10,094
|
|
Jan 17
|
10,119
|
10,571
|
10,102
|
|
Feb 17
|
10,136
|
10,642
|
10,107
|
|
Mar 17
|
10,144
|
10,636
|
10,107
|
|
Apr 17
|
10,152
|
10,719
|
10,115
|
|
May 17
|
10,161
|
10,801
|
10,121
|
|
Jun 17
|
10,169
|
10,790
|
10,131
|
|
Jul 17
|
10,178
|
10,837
|
10,141
|
|
Aug 17
|
10,187
|
10,934
|
10,155
|
|
Sep 17
|
10,196
|
10,882
|
10,162
|
|
Oct 17
|
10,205
|
10,888
|
10,172
|
|
Nov 17
|
10,215
|
10,874
|
10,180
|
|
Dec 17
|
10,218
|
10,924
|
10,191
|
|
Jan 18
|
10,219
|
10,798
|
10,202
|
|
Feb 18
|
10,220
|
10,696
|
10,208
|
|
Mar 18
|
10,233
|
10,764
|
10,223
|
|
Apr 18
|
10,248
|
10,684
|
10,238
|
|
May 18
|
10,264
|
10,761
|
10,255
|
|
Jun 18
|
10,281
|
10,747
|
10,272
|
|
Jul 18
|
10,298
|
10,750
|
10,289
|
|
Aug 18
|
10,317
|
10,819
|
10,309
|
|
Sep 18
|
10,335
|
10,749
|
10,323
|
|
Oct 18
|
10,354
|
10,664
|
10,342
|
|
Nov 18
|
10,363
|
10,728
|
10,363
|
|
Dec 18
|
10,388
|
10,925
|
10,386
|
|
Jan 19
|
10,421
|
11,041
|
10,410
|
|
Feb 19
|
10,442
|
11,035
|
10,429
|
|
Mar 19
|
10,475
|
11,247
|
10,454
|
|
Apr 19
|
10,496
|
11,250
|
10,476
|
|
May 19
|
10,529
|
11,449
|
10,501
|
|
Jun 19
|
10,560
|
11,593
|
10,530
|
|
Jul 19
|
10,570
|
11,619
|
10,550
|
|
Aug 19
|
10,600
|
11,920
|
10,578
|
|
Sep 19
|
10,618
|
11,856
|
10,596
|
|
Oct 19
|
10,647
|
11,892
|
10,623
|
|
Nov 19
|
10,652
|
11,886
|
10,635
|
|
Dec 19
|
10,669
|
11,878
|
10,653
|
|
Jan 20
|
10,695
|
12,106
|
10,669
|
|
Feb 20
|
10,720
|
12,324
|
10,697
|
|
Mar 20
|
10,628
|
12,251
|
10,752
|
|
Apr 20
|
10,725
|
12,469
|
10,753
|
|
May 20
|
10,766
|
12,527
|
10,750
|
|
Jun 20
|
10,784
|
12,606
|
10,752
|
|
Jul 20
|
10,790
|
12,795
|
10,756
|
|
Aug 20
|
10,794
|
12,691
|
10,757
|
|
Sep 20
|
10,797
|
12,684
|
10,759
|
|
Oct 20
|
10,800
|
12,628
|
10,761
|
|
Nov 20
|
10,791
|
12,752
|
10,763
|
|
Dec 20
|
10,792
|
12,769
|
10,764
|
|
Jan 21
|
10,794
|
12,678
|
10,765
|
|
Feb 21
|
10,794
|
12,495
|
10,767
|
|
Mar 21
|
10,795
|
12,338
|
10,769
|
|
Apr 21
|
10,796
|
12,436
|
10,770
|
|
May 21
|
10,796
|
12,477
|
10,771
|
|
Jun 21
|
10,796
|
12,564
|
10,770
|
|
Jul 21
|
10,797
|
12,705
|
10,771
|
|
Aug 21
|
10,797
|
12,681
|
10,772
|
|
Sep 21
|
10,786
|
12,571
|
10,773
|
|
Oct 21
|
10,776
|
12,567
|
10,773
|
|
Nov 21
|
10,776
|
12,604
|
10,773
|
|
Dec 21
|
10,765
|
12,572
|
10,774
|
|
Jan 22
|
10,755
|
12,301
|
10,768
|
|
Feb 22
|
10,734
|
12,164
|
10,767
|
|
Mar 22
|
10,703
|
11,826
|
10,764
|
|
Apr 22
|
10,694
|
11,377
|
10,767
|
|
May 22
|
10,710
|
11,451
|
10,780
|
|
Jun 22
|
10,684
|
11,271
|
10,772
|
|
Jul 22
|
10,705
|
11,547
|
10,782
|
|
Aug 22
|
10,719
|
11,220
|
10,797
|
|
Sep 22
|
10,714
|
10,735
|
10,814
|
|
Oct 22
|
10,724
|
10,596
|
10,832
|
|
Nov 22
|
10,769
|
10,986
|
10,871
|
|
Dec 22
|
10,819
|
10,937
|
10,918
|
|
Jan 23
|
10,872
|
11,273
|
10,955
|
|
Feb 23
|
10,891
|
10,982
|
10,986
|
|
Mar 23
|
10,935
|
11,260
|
11,045
|
|
Apr 23
|
10,980
|
11,329
|
11,083
|
|
May 23
|
11,017
|
11,205
|
11,110
|
|
Jun 23
|
11,054
|
11,165
|
11,163
|
|
Jul 23
|
11,104
|
11,158
|
11,209
|
|
Aug 23
|
11,156
|
11,086
|
11,260
|
|
Sep 23
|
11,197
|
10,805
|
11,310
|
|
Oct 23
|
11,241
|
10,634
|
11,361
|
|
Nov 23
|
11,308
|
11,116
|
11,420
|
|
Dec 23
|
11,377
|
11,541
|
11,479
|
|
Jan 24
|
11,435
|
11,510
|
11,529
|
|
Feb 24
|
11,467
|
11,347
|
11,570
|
|
Mar 24
|
11,514
|
11,452
|
11,621
|
|
Apr 24
|
11,548
|
11,162
|
11,668
|
|
May 24
|
11,606
|
11,352
|
11,723
|
|
Jun 24
|
11,652
|
11,459
|
11,772
|
|
Jul 24
|
11,722
|
11,727
|
11,832
|
See "Average annual total returns" for additional information on fund performance.
Average annual total returns
|
Average Annual Total Returns
|
1 Year
|
5 Years
|
10 Years
|
|
Investor A Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.56%
|
2.09%
|
1.60%
|
|
Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.10
|
0.19
|
1.61
|
|
ICE BofA 6-Month U.S. Treasury Bill Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.58
|
2.32
|
1.70
|
Key Fund statistics
|
Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
$1,133,264,082
|
|
Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
239
|
|
Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
$1,584,361
|
|
Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
34%
|
Average annual total returns reflect reductions for service fees.
The Fund has added the Bloomberg U.S. Aggregate Bond Index in response to new regulatory requirements.
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.
On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 6-Month U.S. Treasury Bill Index (the "Index"). Index data prior to March 1, 2021 is for the Index's standard pricing time of 3pm. Index data from March 1, 2021 through November 30, 2023 is for a custom 4pm pricing variant of the Index. Index returns beginning on December 1, 2023 reflect the Index's new standard pricing time of 4pm. The change of the Index's standard pricing time from 3pm to 4pm resulted in the discontinuation of the custom 4pm pricing variant used from March 1, 2021 through November 30, 2023.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.comfor more recent performance information.
What did the Fund invest in?
(as of July 31, 2024)
Portfolio composition
Maturity allocation
|
Investment Type
|
Percent of Net Assets
|
|
Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
37.0%
|
|
Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.5
|
|
U.S. Treasury Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
1.6
|
|
Municipal Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
0.3
|
|
Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
0.2
|
|
Short-Term Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
56.0
|
|
Liabilities in Excess of Other Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
(0.6)
|
|
Percent of Net Assets
|
|
|
1-7 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
7.5%
|
|
8-14 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
6.1
|
|
15-30 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
3.9
|
|
31-60 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
8.5
|
|
61-90 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
10.6
|
|
91-120 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
10.2
|
|
121-150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
1.5
|
|
>150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
51.7
|
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund's prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports 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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, ICE Data Indices, LLC, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
© 2024 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
BlackRock Short Obligations Fund
Investor A Shares | BASOX
Annual Shareholder Report - July 31, 2024
BASOX-07/24-AR
BlackRock Short Obligations Fund
Class K Shares | BBSOX
Annual Shareholder Report - July 31, 2024
This annual shareholder report contains important information about BlackRock Short Obligations Fund (the "Fund") for the period of August 1, 2023 to July 31, 2024.You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441-7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
|
Class name
|
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
|
Class K Shares
|
$21
|
0.20%
|
How did the Fund perform last year?
-
Although inflation came down over the course of the annual period, it remained above the U.S. Federal Reserve's (the "Fed") stated 2% target.
-
The Fed responded by keeping short-term interest rates in a range of 5.25% to 5.50%.
-
The central bank's decision to keep rates elevated translated to attractive yields on short-term debt.
What contributed to performance?
During the reporting period, the Fund's duration and yield curve positioning contributed positively. The Fund's sector allocations were also a source of positive contribution.
What detracted from performance?
At a time of positive returns for the broader asset class, no aspect of the Fund's positioning was a significant detractor.
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 performance
Cumulative performance: August 1, 2014through July 31, 2024
Initial investment of $10,000
|
Class K Shares
|
Bloomberg U.S. Aggregate Bond Index
|
ICE BofA 6-Month U.S. Treasury Bill Index
|
|
|
Aug 14
|
10,004
|
10,110
|
10,002
|
|
Sep 14
|
9,998
|
10,042
|
10,003
|
|
Oct 14
|
10,003
|
10,140
|
10,003
|
|
Nov 14
|
10,007
|
10,212
|
10,003
|
|
Dec 14
|
10,012
|
10,222
|
10,005
|
|
Jan 15
|
10,017
|
10,436
|
10,008
|
|
Feb 15
|
10,021
|
10,338
|
10,009
|
|
Mar 15
|
10,026
|
10,386
|
10,009
|
|
Apr 15
|
10,031
|
10,349
|
10,013
|
|
May 15
|
10,036
|
10,324
|
10,014
|
|
Jun 15
|
10,042
|
10,211
|
10,016
|
|
Jul 15
|
10,047
|
10,282
|
10,015
|
|
Aug 15
|
10,042
|
10,268
|
10,016
|
|
Sep 15
|
10,057
|
10,337
|
10,026
|
|
Oct 15
|
10,062
|
10,339
|
10,023
|
|
Nov 15
|
10,068
|
10,311
|
10,022
|
|
Dec 15
|
10,064
|
10,278
|
10,027
|
|
Jan 16
|
10,071
|
10,420
|
10,035
|
|
Feb 16
|
10,078
|
10,494
|
10,039
|
|
Mar 16
|
10,106
|
10,590
|
10,048
|
|
Apr 16
|
10,114
|
10,630
|
10,055
|
|
May 16
|
10,122
|
10,633
|
10,056
|
|
Jun 16
|
10,140
|
10,824
|
10,068
|
|
Jul 16
|
10,148
|
10,893
|
10,071
|
|
Aug 16
|
10,157
|
10,880
|
10,072
|
|
Sep 16
|
10,166
|
10,874
|
10,081
|
|
Oct 16
|
10,185
|
10,791
|
10,087
|
|
Nov 16
|
10,195
|
10,535
|
10,089
|
|
Dec 16
|
10,198
|
10,550
|
10,094
|
|
Jan 17
|
10,208
|
10,571
|
10,102
|
|
Feb 17
|
10,228
|
10,642
|
10,107
|
|
Mar 17
|
10,240
|
10,636
|
10,107
|
|
Apr 17
|
10,250
|
10,719
|
10,115
|
|
May 17
|
10,262
|
10,801
|
10,121
|
|
Jun 17
|
10,273
|
10,790
|
10,131
|
|
Jul 17
|
10,285
|
10,837
|
10,141
|
|
Aug 17
|
10,297
|
10,934
|
10,155
|
|
Sep 17
|
10,309
|
10,882
|
10,162
|
|
Oct 17
|
10,322
|
10,888
|
10,172
|
|
Nov 17
|
10,335
|
10,874
|
10,180
|
|
Dec 17
|
10,341
|
10,924
|
10,191
|
|
Jan 18
|
10,346
|
10,798
|
10,202
|
|
Feb 18
|
10,349
|
10,696
|
10,208
|
|
Mar 18
|
10,366
|
10,764
|
10,223
|
|
Apr 18
|
10,383
|
10,684
|
10,238
|
|
May 18
|
10,412
|
10,761
|
10,255
|
|
Jun 18
|
10,421
|
10,747
|
10,272
|
|
Jul 18
|
10,442
|
10,750
|
10,289
|
|
Aug 18
|
10,473
|
10,819
|
10,309
|
|
Sep 18
|
10,494
|
10,749
|
10,323
|
|
Oct 18
|
10,506
|
10,664
|
10,342
|
|
Nov 18
|
10,528
|
10,728
|
10,363
|
|
Dec 18
|
10,545
|
10,925
|
10,386
|
|
Jan 19
|
10,591
|
11,041
|
10,410
|
|
Feb 19
|
10,615
|
11,035
|
10,429
|
|
Mar 19
|
10,640
|
11,247
|
10,454
|
|
Apr 19
|
10,665
|
11,250
|
10,476
|
|
May 19
|
10,700
|
11,449
|
10,501
|
|
Jun 19
|
10,734
|
11,593
|
10,530
|
|
Jul 19
|
10,757
|
11,619
|
10,550
|
|
Aug 19
|
10,780
|
11,920
|
10,578
|
|
Sep 19
|
10,801
|
11,856
|
10,596
|
|
Oct 19
|
10,832
|
11,892
|
10,623
|
|
Nov 19
|
10,841
|
11,886
|
10,635
|
|
Dec 19
|
10,860
|
11,878
|
10,653
|
|
Jan 20
|
10,890
|
12,106
|
10,669
|
|
Feb 20
|
10,918
|
12,324
|
10,697
|
|
Mar 20
|
10,826
|
12,251
|
10,752
|
|
Apr 20
|
10,928
|
12,469
|
10,753
|
|
May 20
|
10,973
|
12,527
|
10,750
|
|
Jun 20
|
10,993
|
12,606
|
10,752
|
|
Jul 20
|
11,002
|
12,795
|
10,756
|
|
Aug 20
|
11,009
|
12,691
|
10,757
|
|
Sep 20
|
11,015
|
12,684
|
10,759
|
|
Oct 20
|
11,020
|
12,628
|
10,761
|
|
Nov 20
|
11,025
|
12,752
|
10,763
|
|
Dec 20
|
11,029
|
12,769
|
10,764
|
|
Jan 21
|
11,033
|
12,678
|
10,765
|
|
Feb 21
|
11,025
|
12,495
|
10,767
|
|
Mar 21
|
11,029
|
12,338
|
10,769
|
|
Apr 21
|
11,032
|
12,436
|
10,770
|
|
May 21
|
11,036
|
12,477
|
10,771
|
|
Jun 21
|
11,039
|
12,564
|
10,770
|
|
Jul 21
|
11,042
|
12,705
|
10,771
|
|
Aug 21
|
11,045
|
12,681
|
10,772
|
|
Sep 21
|
11,036
|
12,571
|
10,773
|
|
Oct 21
|
11,039
|
12,567
|
10,773
|
|
Nov 21
|
11,031
|
12,604
|
10,773
|
|
Dec 21
|
11,024
|
12,572
|
10,774
|
|
Jan 22
|
11,016
|
12,301
|
10,768
|
|
Feb 22
|
10,997
|
12,164
|
10,767
|
|
Mar 22
|
10,968
|
11,826
|
10,764
|
|
Apr 22
|
10,962
|
11,377
|
10,767
|
|
May 22
|
10,980
|
11,451
|
10,780
|
|
Jun 22
|
10,957
|
11,271
|
10,772
|
|
Jul 22
|
10,981
|
11,547
|
10,782
|
|
Aug 22
|
10,998
|
11,220
|
10,797
|
|
Sep 22
|
10,996
|
10,735
|
10,814
|
|
Oct 22
|
11,008
|
10,596
|
10,832
|
|
Nov 22
|
11,057
|
10,986
|
10,871
|
|
Dec 22
|
11,112
|
10,937
|
10,918
|
|
Jan 23
|
11,169
|
11,273
|
10,955
|
|
Feb 23
|
11,191
|
10,982
|
10,986
|
|
Mar 23
|
11,239
|
11,260
|
11,045
|
|
Apr 23
|
11,288
|
11,329
|
11,083
|
|
May 23
|
11,329
|
11,205
|
11,110
|
|
Jun 23
|
11,369
|
11,165
|
11,163
|
|
Jul 23
|
11,424
|
11,158
|
11,209
|
|
Aug 23
|
11,480
|
11,086
|
11,260
|
|
Sep 23
|
11,526
|
10,805
|
11,310
|
|
Oct 23
|
11,574
|
10,634
|
11,361
|
|
Nov 23
|
11,645
|
11,116
|
11,420
|
|
Dec 23
|
11,719
|
11,541
|
11,479
|
|
Jan 24
|
11,770
|
11,510
|
11,529
|
|
Feb 24
|
11,807
|
11,347
|
11,570
|
|
Mar 24
|
11,858
|
11,452
|
11,621
|
|
Apr 24
|
11,907
|
11,162
|
11,668
|
|
May 24
|
11,970
|
11,352
|
11,723
|
|
Jun 24
|
12,020
|
11,459
|
11,772
|
|
Jul 24
|
12,096
|
11,727
|
11,832
|
See "Average annual total returns" for additional information on fund performance.
Average annual total returns
|
Average Annual Total Returns
|
1 Year
|
5 Years
|
10 Years
|
|
Class K Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.88%
|
2.37%
|
1.92%
|
|
Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.10
|
0.19
|
1.61
|
|
ICE BofA 6-Month U.S. Treasury Bill Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.58
|
2.32
|
1.70
|
Key Fund statistics
|
Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
$1,133,264,082
|
|
Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
239
|
|
Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
$1,584,361
|
|
Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
34%
|
The Fund has added the Bloomberg U.S. Aggregate Bond Index in response to new regulatory requirements.
On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 6-Month U.S. Treasury Bill Index (the "Index"). Index data prior to March 1, 2021 is for the Index's standard pricing time of 3pm. Index data from March 1, 2021 through November 30, 2023 is for a custom 4pm pricing variant of the Index. Index returns beginning on December 1, 2023 reflect the Index's new standard pricing time of 4pm. The change of the Index's standard pricing time from 3pm to 4pm resulted in the discontinuation of the custom 4pm pricing variant used from March 1, 2021 through November 30, 2023.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.comfor more recent performance information.
What did the Fund invest in?
(as of July 31, 2024)
Portfolio composition
Maturity allocation
|
Investment Type
|
Percent of Net Assets
|
|
Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
37.0%
|
|
Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
5.5
|
|
U.S. Treasury Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
1.6
|
|
Municipal Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
0.3
|
|
Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
0.2
|
|
Short-Term Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
56.0
|
|
Liabilities in Excess of Other Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
(0.6)
|
|
Percent of Net Assets
|
|
|
1-7 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
7.5%
|
|
8-14 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
6.1
|
|
15-30 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
3.9
|
|
31-60 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
8.5
|
|
61-90 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
10.6
|
|
91-120 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
10.2
|
|
121-150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
1.5
|
|
>150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................
|
51.7
|
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund's prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
Householding
The Fund will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports 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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, ICE Data Indices, LLC, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
© 2024 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
BlackRock Short Obligations Fund
Class K Shares | BBSOX
Annual Shareholder Report - July 31, 2024
BBSOX-07/24-AR
(b) Not Applicable
Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.
Item 3 - Audit Committee Financial Expert - The registrant's board of directors (the "board of directors"), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
Neil A. Cotty
Henry R. Keizer
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 Fees3
|
||||
|
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
|
$24,442
|
$24,442
|
$0
|
$0
|
$11,960
|
$11,960
|
$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
|
1The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.
2The nature of the services includes tax compliance, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, tax distribution and analysis reviews..
3Aggregate 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:
(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
|
$11,960
|
$11,960
|
(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 Financial Statement and Financial Highlights for Open-End Management Investment Companies filed under Item 7 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 - Financial Statements and Financial Highlights for Open-End Management Investment Companies - See Item 7
(a) The registrant's Financial Statements are attached herewith.
(b) The registrant's Financial Highlights are attached herewith.
July
31,
2024
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2024
Annual
Financial
Statements
BlackRock
Funds
SM
BlackRock
Short
Obligations
Fund
Table
of
Contents
Page
2
Schedule
of
Investments
..................................................................................................
3
Statement
of
Assets
and
Liabilities
............................................................................................
10
Statement
of
Operations
..................................................................................................
12
Statements
of
Changes
in
Net
Assets
..........................................................................................
13
Financial
Highlights
.....................................................................................................
14
Notes
to
Financial
Statements
...............................................................................................
17
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
24
Important
Tax
Information
.................................................................................................
25
Additional
Information
....................................................................................................
26
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
...................................................................
28
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
31
Schedule
of
Investments
July
31,
2024
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
3
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
American
Express
Credit
Account
Master
Trust,
Series
2022-4,
Class
A,
4.95%,
10/15/27
..
USD
5,000
$
5,000,197
BMW
Vehicle
Lease
Trust,
Series
2024-1,
Class
A2B,
(SOFR
30
day
Average
at
0.00%
Floor
+
0.40%),
5.75%,
07/27/26
(a)
..........
1,401
1,401,996
BMW
Vehicle
Owner
Trust,
Series
2024-A,
Class
A2B,
(SOFR
30
day
Average
at
0.00%
Floor
+
0.34%),
5.69%,
02/25/27
(a)
......
1,557
1,556,999
CarMax
Auto
Owner
Trust
Series
2022-4,
Class
A2A,
5.34%,
12/15/25
140
139,818
Series
2023-1,
Class
A2A,
5.23%,
01/15/26
750
749,716
Series
2023-2,
Class
A2B,
(SOFR
30
day
Average
at
0.00%
Floor
+
0.85%),
6.19%,
06/15/26
(a)
....................
1,769
1,771,648
Series
2023-3,
Class
A2B,
(SOFR
30
day
Average
at
0.00%
Floor
+
0.60%),
5.94%,
11/16/26
(a)
....................
1,740
1,741,541
Series
2023-4,
Class
A2A,
6.08%,
12/15/26
2,101
2,108,324
Chase
Issuance
Trust,
Series
2022-A1,
Class
A,
3.97%,
09/15/27
..................
4,700
4,645,761
Citibank
Credit
Card
Issuance
Trust,
Series
2023-A1,
Class
A1,
5.23%,
12/08/27
.....
1,379
1,383,841
CNH
Equipment
Trust
Series
2023-A,
Class
A2,
5.34%,
09/15/26
.
1,002
1,000,995
Series
2024-B,
Class
A2A,
5.42%,
10/15/27
1,746
1,751,433
Series
2024-B,
Class
A2B,
(SOFR
30
day
Average
at
0.40%
Floor
+
0.40%),
5.74%,
10/15/27
(a)
....................
1,525
1,525,411
Ford
Credit
Auto
Lease
Trust
Series
2023-B,
Class
A2A,
5.90%,
02/15/26
1,108
1,108,712
Series
2024-B,
Class
A2A,
5.18%,
02/15/27
946
946,664
Ford
Credit
Auto
Owner
Trust
Series
2024-A,
Class
A2A,
5.32%,
01/15/27
2,030
2,031,038
Series
2024-B,
Class
A2A,
5.40%,
04/15/27
1,997
2,001,642
Honda
Auto
Receivables
Owner
Trust
Series
2023-2,
Class
A2,
5.41%,
04/15/26
.
2,142
2,140,752
Series
2024-1,
Class
A2,
5.36%,
09/15/26
.
3,133
3,132,071
Hyundai
Auto
Lease
Securitization
Trust
(b)
Series
2023-B,
Class
A2A,
5.47%,
09/15/25
697
696,517
Series
2023-B,
Class
A2B,
(SOFR
30
day
Average
at
0.00%
Floor
+
0.75%),
6.09%,
09/15/25
(a)
....................
753
753,586
Series
2024-B,
Class
A2A,
5.51%,
10/15/26
2,975
2,983,154
Series
2024-B,
Class
A2B,
(SOFR
30
day
Average
at
0.45%
Floor
+
0.45%),
5.79%,
10/15/26
(a)
....................
1,443
1,443,120
Hyundai
Auto
Receivables
Trust,
Series
2024-B,
Class
A2B,
(SOFR
30
day
Average
at
0.00%
Floor
+
0.37%),
5.72%,
06/15/27
(a)
......
1,694
1,694,160
Mercedes-Benz
Auto
Lease
Trust,
Series
2023-
A,
Class
A2,
5.24%,
11/17/25
..........
2,632
2,630,663
Mercedes-Benz
Auto
Receivables
Trust,
Series
2023-2,
Class
A2,
5.92%,
11/16/26
......
1,615
1,618,554
Nissan
Auto
Receivables
Owner
Trust
Series
2022-B,
Class
A2,
4.50%,
08/15/25
.
133
133,093
Series
2023-A,
Class
A2B,
(SOFR
30
day
Average
at
0.00%
Floor
+
0.65%),
5.99%,
02/17/26
(a)
....................
2,484
2,486,398
Toyota
Auto
Receivables
Owner
Trust
Series
2023-B,
Class
A2A,
5.28%,
05/15/26
1,606
1,604,858
Series
2023-B,
Class
A2B,
(SOFR
30
day
Average
at
0.52%
Floor
+
0.52%),
5.86%,
05/15/26
(a)
....................
1,528
1,529,056
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2024-A,
Class
A2B,
(SOFR
30
day
Average
at
0.00%
Floor
+
0.35%),
5.69%,
12/15/26
(a)
....................
USD
4,501
$
4,501,340
Toyota
Lease
Owner
Trust,
Series
2024-A,
Class
A2B,
(SOFR
30
day
Average
at
0.00%
Floor
+
0.40%),
5.74%,
07/20/26
(a)
(b)
.....
2,138
2,139,207
USAA
Auto
Owner
Trust,
Series
2024-A,
Class
A2,
5.25%,
03/15/27
(b)
..............
1,907
1,908,669
Total
Asset-Backed
Securities
-
5
.5
%
(Cost:
$
62,270,521
)
...............................
62,260,934
Corporate
Bonds
Aerospace
&
Defense
-
0.5%
General
Dynamics
Corp.,
3.50%,
04/01/27
..
1,970
1,921,080
Lockheed
Martin
Corp.,
4.95%,
10/15/25
...
2,220
2,222,638
RTX
Corp.,
5.00%,
02/27/26
...........
1,595
1,598,569
5,742,287
Automobiles
-
3.5%
(b)
BMW
US
Capital
LLC,
(SOFR
Index
at
0.00%
Floor
+
0.38%),
5.79%,
08/12/24
(a)
......
17,735
17,735,485
Daimler
Truck
Finance
North
America
LLC
5.20%
,
01/17/25
..................
2,545
2,541,717
5.00%
,
01/15/27
..................
2,260
2,267,814
Hyundai
Capital
America
5.45%
,
06/24/26
..................
2,005
2,020,904
5.25%
,
01/08/27
..................
2,625
2,641,119
Mercedes-Benz
Finance
North
America
LLC
5.38%
,
08/01/25
..................
3,330
3,338,660
4.90%
,
01/09/26
..................
3,150
3,154,314
4.88%
,
07/31/26
..................
2,840
2,846,179
Volkswagen
Group
of
America
Finance
LLC,
(1-day
SOFR
+
0.83%),
6.21%,
03/20/26
(a)
.
3,140
3,155,692
39,701,884
Banks
-
12.8%
Australia
&
New
Zealand
Banking
Group
Ltd.,
5.09%,
12/08/25
.................
3,245
3,259,691
Banque
Federative
du
Credit
Mutuel
SA
(b)
4.94%
,
01/26/26
..................
4,800
4,794,651
5.09%
,
01/23/27
..................
3,140
3,153,401
BPCE
SA
(b)
5.10%
,
01/26/26
..................
3,140
3,126,831
5.20%
,
01/18/27
..................
2,010
2,023,564
Citibank
NA,
4.93%,
08/06/26
..........
4,420
4,430,363
Citigroup,
Inc.,
(1-day
SOFR
+
2.84%),
3.11%,
04/08/26
(a)
.....................
2,430
2,391,227
Cooperatieve
Rabobank
UA,
3.88%,
08/22/24
6,100
6,093,542
JPMorgan
Chase
&
Co.,
(1-day
SOFR
+
1.85%),
2.08%,
04/22/26
(a)
...........
14,370
14,038,788
KeyBank
NA,
4.15%,
08/08/25
..........
2,050
2,023,458
Mitsubishi
UFJ
Financial
Group,
Inc.
1.41%
,
07/17/25
..................
2,930
2,827,208
(1-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
1.55%),
5.06%
,
09/12/25
(a)
....................
5,895
5,890,395
(1-Year
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
+
1.08%),
5.72%
,
02/20/26
(a)
....................
3,600
3,607,385
National
Australia
Bank
Ltd.
5.20%
,
05/13/25
..................
3,140
3,142,854
4.75%
,
12/10/25
..................
2,160
2,159,152
(1-day
SOFR
+
0.55%),
5.90%
,
01/29/26
(a)
(b)
5,150
5,156,605
Nordea
Bank
Abp
(b)
3.60%
,
06/06/25
..................
4,425
4,365,988
2024
BlackRock
Annual
Financial
Statements
Schedule
of
Investments
(continued)
July
31,
2024
BlackRock
Short
Obligations
Fund
4
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
4.75%
,
09/22/25
..................
USD
6,100
$
6,088,351
5.00%
,
03/19/27
..................
3,150
3,180,406
PNC
Financial
Services
Group,
Inc.
(The),
(SOFR
Index
+
1.09%),
5.67%,
10/28/25
(a)
.
5,450
5,450,634
Societe
Generale
SA,
4.35%,
06/13/25
(b)
....
5,000
4,957,098
Sumitomo
Mitsui
Financial
Group,
Inc.,
5.46%,
01/13/26
......................
4,800
4,831,045
Sumitomo
Mitsui
Trust
Bank
Ltd.
(b)
0.80%
,
09/16/24
..................
8,000
7,949,492
(1-day
SOFR
+
0.44%),
5.81%
,
09/16/24
(a)
10,000
10,002,600
Svenska
Handelsbanken
AB,
3.65%,
06/10/25
(b)
6,600
6,517,420
Wells
Fargo
Bank
NA
5.55%
,
08/01/25
..................
3,340
3,357,695
4.81%
,
01/15/26
..................
3,150
3,150,562
Westpac
Banking
Corp.
5.35%
,
10/18/24
..................
5,500
5,497,944
1.02%
,
11/18/24
..................
2,395
2,363,745
(1-day
SOFR
+
0.30%),
5.71%
,
11/18/24
(a)
8,985
8,986,348
144,818,443
Broadline
Retail
-
0.5%
eBay,
Inc.,
5.90%,
11/22/25
............
5,500
5,555,432
Capital
Markets
-
2.9%
Bank
of
New
York
Mellon
(The),
(1-day
SOFR
+
0.45%),
5.82%,
03/13/26
(a)
...........
2,220
2,220,977
Deutsche
Bank
AG,
4.16%,
05/13/25
......
3,900
3,869,448
Goldman
Sachs
Bank
USA
(a)
(1-day
SOFR
+
0.78%),
5.28%
,
03/18/27
.
3,150
3,162,498
(1-day
SOFR
+
0.77%),
6.15%
,
03/18/27
.
3,150
3,149,833
Macquarie
Bank
Ltd.,
5.39%,
12/07/26
(b)
....
1,990
2,016,254
Morgan
Stanley,
(1-day
SOFR
+
0.56%),
1.16%,
10/21/25
(a)
.....................
2,226
2,203,363
National
Securities
Clearing
Corp.,
5.15%,
05/30/25
(b)
.....................
1,230
1,228,470
UBS
AG
(b)
0.70%
,
08/09/24
..................
3,680
3,675,823
(1-day
SOFR
at
0.00%
Floor
+
0.45%),
5.85%
,
08/09/24
(a)
...............
6,775
6,775,264
1.38%
,
01/13/25
..................
4,430
4,349,641
32,651,571
Chemicals
-
0.3%
Sherwin-Williams
Co.
(The),
4.05%,
08/08/24
.
2,775
2,773,972
Commercial
Services
&
Supplies
-
0.2%
Waste
Management,
Inc.,
4.95%,
07/03/27
..
2,155
2,180,575
Consumer
Finance
-
3.0%
American
Express
Co.,
(1-day
SOFR
+
0.75%),
6.11%,
04/23/27
(a)
................
3,050
3,053,658
American
Honda
Finance
Corp.
(a)
(1-day
SOFR
+
0.60%),
6.01%
,
08/14/25
.
3,130
3,137,596
(1-day
SOFR
at
0.00%
Floor
+
0.50%),
5.85%
,
01/12/26
................
3,010
3,012,688
Caterpillar
Financial
Services
Corp.,
(1-day
SOFR
at
0.00%
Floor
+
0.27%),
5.64%,
09/13/24
(a)
.....................
12,325
12,326,118
John
Deere
Capital
Corp.,
3.40%,
06/06/25
..
4,310
4,253,667
Toyota
Motor
Credit
Corp.
4.40%
,
09/20/24
..................
5,000
4,990,281
5.20%
,
05/15/26
..................
2,975
3,002,600
33,776,608
Consumer
Staples
Distribution
&
Retail
-
0.6%
Walmart,
Inc.,
3.90%,
09/09/25
.........
7,000
6,939,947
Security
Par
(000)
Par
(000)
Value
Electric
Utilities
-
0.8%
Florida
Power
&
Light
Co.,
4.45%,
05/15/26
..
USD
1,915
$
1,907,491
NextEra
Energy
Capital
Holdings,
Inc.
6.05%
,
03/01/25
..................
915
918,773
(SOFR
Index
+
0.76%),
6.11%
,
01/29/26
(a)
3,130
3,142,857
Wisconsin
Public
Service
Corp.,
5.35%,
11/10/25
......................
2,720
2,734,381
8,703,502
Electronic
Equipment,
Instruments
&
Components
-
0.3%
Amphenol
Corp.
4.75%
,
03/30/26
..................
750
749,505
5.05%
,
04/05/27
..................
2,755
2,784,375
3,533,880
Financial
Services
-
1.5%
JPMorgan
Chase
Bank
NA,
5.11%,
12/08/26
.
3,030
3,056,686
National
Rural
Utilities
Cooperative
Finance
Corp.,
Series
D,
(1-day
SOFR
+
0.33%),
5.67%,
10/18/24
(a)
................
5,000
5,001,669
Siemens
Financieringsmaatschappij
NV,
6.13%,
08/17/26
(b)
.....................
8,750
9,002,340
17,060,695
Food
Products
-
1.0%
(b)
Cargill,
Inc.,
4.88%,
10/10/25
...........
5,185
5,188,332
Nestle
Holdings,
Inc.,
4.00%,
09/12/25
.....
6,200
6,153,029
11,341,361
Health
Care
Providers
&
Services
-
0.6%
UnitedHealth
Group,
Inc.
5.00%
,
10/15/24
..................
6,000
5,992,889
4.75%
,
07/15/26
..................
850
852,789
6,845,678
Hotels,
Restaurants
&
Leisure
-
0.3%
Starbucks
Corp.,
4.85%,
02/08/27
........
3,130
3,146,263
Insurance
-
2.3%
(b)
MassMutual
Global
Funding
II,
4.15%,
08/26/25
2,238
2,219,545
New
York
Life
Global
Funding
(1-day
SOFR
+
0.70%),
6.07%
,
06/13/25
(a)
3,700
3,714,284
3.60%
,
08/05/25
..................
6,200
6,112,193
Northwestern
Mutual
Global
Funding,
4.00%,
07/01/25
......................
6,400
6,340,493
Pacific
Life
Global
Funding
II,
(SOFR
Index
at
0.00%
Floor
+
0.86%),
6.24%,
06/16/25
(a)
..
3,515
3,531,182
Principal
Life
Global
Funding
II
0.75%
,
08/23/24
..................
705
702,938
(1-day
SOFR
at
0.00%
Floor
+
0.38%),
5.76%
,
08/23/24
(a)
...............
680
680,095
Protective
Life
Global
Funding,
4.99%,
01/12/27
3,150
3,166,405
26,467,135
Media
-
0.1%
Comcast
Corp.,
5.25%,
11/07/25
........
1,000
1,005,957
Multi-Utilities
-
0.3%
Berkshire
Hathaway
Energy
Co.,
4.05%,
04/15/25
......................
1,000
991,253
WEC
Energy
Group,
Inc.,
5.00%,
09/27/25
..
2,560
2,557,513
3,548,766
Oil,
Gas
&
Consumable
Fuels
-
2.0%
TransCanada
PipeLines
Ltd.,
1.00%,
10/12/24
22,930
22,704,752
Pharmaceuticals
-
1.3%
Bristol-Myers
Squibb
Co.
4.95%
,
02/20/26
..................
4,495
4,516,319
(1-day
SOFR
+
0.49%),
5.90%
,
02/20/26
(a)
2,055
2,062,747
Schedule
of
Investments
(continued)
July
31,
2024
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
5
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Pharmaceuticals
(continued)
Pfizer
Investment
Enterprises
Pte.
Ltd.,
4.65%,
05/19/25
......................
USD
7,600
$
7,577,187
14,156,253
Semiconductors
&
Semiconductor
Equipment
-
0.6%
Analog
Devices,
Inc.,
(SOFR
Index
+
0.25%),
5.62%,
10/01/24
(a)
................
7,055
7,055,841
Specialty
Retail
-
0.9%
Home
Depot,
Inc.
(The)
4.00%
,
09/15/25
..................
1,910
1,893,371
5.15%
,
06/25/26
..................
2,900
2,930,108
Lowe's
Cos.,
Inc.
4.40%
,
09/08/25
..................
4,150
4,120,441
4.80%
,
04/01/26
..................
1,760
1,758,784
10,702,704
Technology
Hardware,
Storage
&
Peripherals
-
0.3%
Hewlett
Packard
Enterprise
Co.,
5.90%,
10/01/24
......................
3,600
3,600,446
Tobacco
-
0.4%
Philip
Morris
International,
Inc.,
5.13%,
11/15/24
5,000
4,993,792
Total
Corporate
Bonds
-
37
.0
%
(Cost:
$
419,263,098
)
..............................
419,007,744
Foreign
Agency
Obligations
Canada
-
0.2%
CDP
Financial,
Inc.
,
4.50%
,
02/13/26
(b)
.....
2,523
2,517,235
Total
Foreign
Agency
Obligations
-
0
.2
%
(Cost:
$
2,519,894
)
...............................
2,517,235
Municipal
Bonds
Illinois
-
0
.1
%
State
of
Illinois
,
Series
2023A
,
GO
,
5.25
%
,
05/01/25
..................
1,485
1,483,535
Other
-
0
.2
%
Taxable
Municipal
Funding
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates,
Various
States
(b)(c)(d)
Series
2020-BTMFT-003
,
RB
,
VRDN
(
Barclays
Bank
plc
LOC
),
5.63
%
,
08/01/24
................
700
700,000
Series
2020-11
,
RB
,
VRDN
(
Barclays
Bank
plc
LOC
),
5.63
%
,
08/01/24
.........
1,120
1,120,000
1,820,000
Total
Municipal
Bonds
-
0
.3
%
(Cost:
$
3,305,000
)
...............................
3,303,535
U.S.
Treasury
Obligations
U.S.
Treasury
Notes
4.75
%
,
07/31/25
..................
6,220
6,221,118
5.00
%
,
08/31/25
-
09/30/25
...........
6,020
6,039,509
4.88
%
,
11/30/25
..................
3,080
3,092,031
1.63
%
,
02/15/26
..................
2,580
2,472,668
Total
U.S.
Treasury
Obligations
-
1
.6
%
(Cost:
$
17,743,483
)
...............................
17,825,326
Total
Long-Term
Investments
-
44.6%
(Cost:
$
505,101,996
)
..............................
504,914,774
Security
Par
(000)
Pa
r
(
000)
Value
Short-Term
Securities
Certificates
of
Deposit
-
8.3%
Domestic
-
1.1%
(a)
Bank
of
America
NA
,
(1-day
SOFR
+
0.27%),
5.65
%
,
02/14/25
..................
USD
3,000
$
3,000,595
HSBC
Bank
USA
NA,
New
York
,
(1-day
SOFR
+
0.30%),
5.63
%
,
02/20/25
.............
10,000
9,998,987
12,999,582
Yankee
-
7.2%
(e)
Bank
of
Montreal,
Chicago
(1-day
SOFR
+
0.30%),
5.63
%
,
02/11/25
(a)
.
5,610
5,612,538
5.50
%
,
06/11/25
..................
9,000
9,025,580
Canadian
Imperial
Bank
of
Commerce,
New
York
,
5.96
%
,
09/20/24
..............
6,000
6,002,676
Commonwealth
Bank
of
Australia,
New
York
,
5.70
%
,
11/19/24
..................
3,870
3,871,664
Cooperatieve
Rabobank
UA,
New
York
,
5.30
%
,
03/05/25
..................
5,500
5,500,330
Credit
Agricole
Corporate
&
Investment
Bank
SA,
New
York
,
5.50
%
,
06/02/25
........
3,840
3,850,524
Credit
Industriel
et
Commercial,
New
York
,
5.55
%
,
04/14/25
..................
10,070
10,090,147
Lloyds
Bank
Corporate
Markets
plc
,
5.10
%
,
07/25/25
..................
4,750
4,751,033
Mizuho
Bank
Ltd.,
New
York
,
(1-day
SOFR
+
0.23%),
5.56
%
,
11/13/24
(a)
............
3,300
3,300,739
Natixis
SA,
New
York
,
5.55
%
,
05/30/25
.....
9,000
9,025,533
Royal
Bank
of
Canada,
New
York
,
5.96
%
,
09/19/24
..................
7,250
7,253,063
Toronto-Dominion
Bank
(The),
New
York
6.00
%
,
08/26/24
..................
4,230
4,231,143
6.00
%
,
10/02/24
..................
9,250
9,255,379
81,770,349
Total
Certificates
of
Deposit
-
8
.3
%
(Cost:
$
94,669,859
)
...............................
94,769,931
Commercial
Paper
-
38.6%
ABN
AMRO
Funding
USA
LLC
,
5.45%
,
10/01/24
(b)
(f)
......................
1,440
1,426,663
American
Honda
Finance
Corp.
(f)
5.66%
,
08/05/24
..................
6,530
6,525,096
5.64%
,
09/16/24
..................
4,600
4,566,969
5.64%
,
09/26/24
..................
8,920
8,842,322
AstraZeneca
plc
,
5.50%
,
10/07/24
(b)
(f)
......
3,130
3,097,648
Australia
&
New
Zealand
Banking
Group
Ltd.
(b)
(1-day
SOFR
+
0.26%),
5.59%
,
04/22/25
(a)
5,500
5,499,924
5.41%
,
06/26/25
(f)
.................
9,000
8,602,515
Banco
Santander
SA
(b)
5.30%
,
08/29/24
(f)
.................
3,180
3,166,247
(1-day
SOFR
+
0.46%),
5.79%
,
01/07/25
(a)
5,000
5,004,755
Bay
Square
Funding
LLC
(a)(b)
(1-day
SOFR
+
0.27%),
5.60%
,
10/11/24
.
5,200
5,201,230
(1-day
SOFR
+
0.23%),
5.56%
,
12/10/24
.
2,500
2,499,861
(1-day
SOFR
+
0.27%),
5.60%
,
01/08/25
.
4,900
4,900,172
Bell
Canada,
Inc.
(b)(f)
5.54%
,
08/02/24
..................
2,750
2,749,173
5.53%
,
08/12/24
..................
6,500
6,488,235
BofA
Securities,
Inc.
(b)(f)
5.54%
,
06/06/25
..................
5,250
5,025,224
5.43%
,
06/17/25
..................
4,000
3,823,332
BPCE
SA
,
5.37%
,
01/31/25
(b)
(f)
...........
3,070
2,989,624
CDP
Financial,
Inc.
(b)(f)
5.20%
,
02/03/25
..................
6,940
6,755,906
2024
BlackRock
Annual
Financial
Statements
Schedule
of
Investments
(continued)
July
31,
2024
BlackRock
Short
Obligations
Fund
6
(Percentages
shown
are
based
on
Net
Assets)
Security
Par
(000)
Par
(000)
Value
Commercial
Paper
(continued)
5.30%
,
07/07/25
..................
USD
6,000
$
5,724,193
Commonwealth
Bank
of
Australia
,
(1-day
SOFR
+
0.20%),
5.53%
,
01/21/25
(a)
(b)
.........
3,300
3,300,075
Concord
Minutemen
Capital
Co.
LLC
,
5.35%
,
01/27/25
(b)
......................
6,000
6,000,000
CRH
America
Finance,
Inc.
(b)(f)
5.59%
,
08/01/24
..................
3,750
3,749,435
5.55%
,
08/12/24
..................
5,000
4,990,925
5.64%
,
10/25/24
..................
2,000
1,973,764
DNB
Bank
ASA
,
5.54%
,
12/05/24
(b)
(f)
.......
5,390
5,291,627
European
Investment
Bank
,
5.12%
,
04/17/25
(f)
11,750
11,332,597
Fiserv,
Inc.
,
5.53%
,
08/07/24
(b)
(f)
..........
16,500
16,482,515
HSBC
USA,
Inc.
(b)(f)
6.29%
,
11/27/24
..................
1,300
1,276,978
5.55%
,
01/21/25
..................
7,630
7,435,872
5.74%
,
02/14/25
..................
3,320
3,225,563
5.83%
,
06/06/25
..................
2,445
2,338,985
Hyundai
Capital
America
,
5.60%
,
08/14/24
(b)
(f)
.
4,880
4,869,655
ING
US
Funding
LLC
5.43%
,
10/24/24
(b)
(f)
................
7,400
7,306,960
(1-day
SOFR
+
0.24%),
5.57%
,
11/18/24
(a)
3,500
3,501,111
Keurig
Dr
Pepper,
Inc.
,
5.56%
,
08/09/24
(b)
(f)
..
2,000
1,997,282
LSEGA
Financing
plc
(b)(f)
5.58%
,
08/20/24
..................
2,750
2,741,704
5.58%
,
08/23/24
..................
3,250
3,238,725
LVMH
Moet
Hennessy
Louis
Vuitton
SE
,
5.44%
,
01/09/25
(b)
(f)
......................
6,880
6,721,361
Macquarie
Bank
Ltd.
(b)
5.79%
,
11/27/24
(f)
.................
3,430
3,369,604
5.31%
,
02/18/25
(f)
.................
6,510
6,322,870
(1-day
SOFR
+
0.40%),
5.73%
,
06/24/25
(a)
8,050
8,055,016
Marriott
International,
Inc.
,
5.57%
,
08/28/24
(b)
(f)
3,500
3,484,984
Marubeni
Finance
America
LLC
,
5.55%
,
08/16/24
(b)
(f)
......................
4,000
3,990,138
Microchip
Technology,
Inc.
,
5.55%
,
08/02/24
(b)
(f)
3,000
2,999,069
National
Australia
Bank
Ltd.
,
(1-day
SOFR
+
0.25%),
5.58%
,
02/18/25
(a)
(b)
..........
12,000
12,002,430
National
Bank
of
Canada
(b)(f)
5.85%
,
11/06/24
..................
8,040
7,923,776
5.57%
,
04/30/25
..................
8,000
7,698,129
5.54%
,
05/23/25
..................
5,680
5,449,082
Nutrien
Financial
US
LLC
,
5.56%
,
08/01/24
(b)
(f)
4,000
3,999,388
Security
Par
(000)
Par
(000)
Value
Commercial
Paper
(continued)
Nutrien
Ltd.
,
5.55%
,
08/12/24
(b)
(f)
..........
USD
4,750
$
4,741,318
Paradelle
Funding
LLC
,
5.48%
,
06/06/25
(b)
(f)
..
12,530
11,997,060
Penske
Truck
Leasing
Co.
LP
(b)(f)
5.55%
,
08/09/24
..................
5,250
5,242,748
5.58%
,
08/26/24
..................
4,000
3,983,807
5.56%
,
09/06/24
..................
3,200
3,181,578
Penske
Truck
Leasing
Co.
LP
/
PTL
Finance
Corp.
,
5.59%
,
10/04/24
(b)
(f)
............
10,000
9,899,431
Pfizer,
Inc.
,
5.34%
,
08/06/24
(b)
(f)
..........
9,000
8,992,052
PPG
Industries,
Inc.
,
5.53%
,
08/02/24
(f)
.....
7,250
7,247,816
Royal
Bank
of
Canada
(f)
5.47%
,
10/15/24
(b)
.................
4,050
4,004,924
5.80%
,
11/06/24
..................
8,950
8,822,278
Societe
Generale
SA
,
5.35%
,
10/02/24
(b)
(f)
...
10,400
10,303,600
Svenska
Handelsbanken
AB
,
5.85%
,
08/09/24
(f)
8,750
8,738,479
Telstra
Group
Ltd.
(b)(f)
5.59%
,
11/06/24
..................
11,960
11,779,621
5.58%
,
12/17/24
..................
9,180
8,987,268
TotalEnergies
Capital
SA
,
5.49%
,
09/13/24
(b)
(f)
7,000
6,954,313
United
Overseas
Bank
Ltd.
,
(1-day
SOFR
+
0.20%),
5.53%
,
01/22/25
(a)
(b)
..........
3,000
3,000,169
UnitedHealth
Group,
Inc.
,
5.53%
,
09/16/24
(b)
(f)
.
9,160
9,096,124
Volvo
Treasury
North
America
LP
,
5.41%
,
11/15/24
(b)
(f)
......................
1,750
1,721,621
Vulcan
Materials
Co.
,
5.49%
,
08/01/24
(b)
(f)
...
14,370
14,367,828
VW
Credit,
Inc.
(b)(f)
5.53%
,
08/19/24
..................
5,250
5,234,853
5.54%
,
08/22/24
..................
8,250
8,222,392
Western
Union
Co.
(The)
(b)(f)
5.50%
,
08/01/24
..................
5,750
5,749,125
5.54%
,
08/07/24
..................
12,250
12,236,923
Westpac
Banking
Corp.
,
5.71%
,
11/07/24
(b)
(f)
.
6,870
6,770,467
Total
Commercial
Paper
-
38
.6
%
(Cost:
$
437,139,809
)
..............................
437,234,504
Total
Repurchase
Agreements
-
9
.1
%
(Cost:
$
103,000,000
)
..............................
103,000,000
Total
Short-Term
Securities
-
56.0%
(Cost:
$
634,809,668
)
..............................
635,004,435
Total
Investments
-
100
.6
%
(Cost:
$
1,139,911,664
)
............................
1,139,919,209
Liabilities
in
Excess
of
Other
Assets
-
(
0.6
)
%
.............
(
6,655,127
)
Net
Assets
-
100.0%
...............................
$
1,133,264,082
(a)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(b)
Security
exempt
from
registration
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933,
as
amended.
These
securities
may
be
resold
in
transactions
exempt
from
registration
to
qualified
institutional
investors.
(c)
These
securities
are
short-term
floating
rate
certificates
issued
by
tender
option
bond
trusts
and
are
secured
by
the
underlying
municipal
bond
securities.
(d)
Variable
rate
security.
Rate
as
of
period
end
and
maturity
is
the
date
the
principal
owed
can
be
recovered
through
demand.
(e)
Issuer
is
a
U.S.
branch
of
a
foreign
domiciled
bank.
(f)
Rates
are
the
current
rate
or
a
range
of
current
rates
as
of
period
end.
Schedule
of
Investments
(continued)
July
31,
2024
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
7
Affiliates
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the year
ended
July
31,
2024
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
07/31/23
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
07/31/24
Shares
Held
at
07/31/24
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
$
135,471
$
-
$
(
135,471
)
(b)
$
-
$
-
$
-
-
$
22,402
$
-
-
-
(a)
As
of
period
end,
the
entity
is
no
longer
held.
(b)
Represents
net
amount
purchased
(sold).
For
purposes
of
this
report,
industry
and
sector
sub-classifications
may
differ
from
those
utilized
by
the
Fund
for
compliance
purposes.
2024
BlackRock
Annual
Financial
Statements
Schedule
of
Investments
(continued)
July
31,
2024
BlackRock
Short
Obligations
Fund
8
Repurchase
Agreements
Repurchase
Agreements
Collateral
Counterparty
Coupon
Rate
Purchase
Date
Maturity
Date
Par
(000)
A
t
Value
Proceeds
Including
Interest
Position
Original
Par
Position
Received,
At
Value
Bank
of
America
Securities,
Inc.
...
5
.64
%
(a)
07/31/24
09/05/24
$
12,250
$
12,250,000
$
12,319,090
Corporate/Debt
Obligations,
2.85%
to
7.60%,
due
02/17/39
to
03/25/67
.........
$
14,183,190
$
13,107,502
5
.82
(a)
07/31/24
11/04/24
2,000
2,000,000
2,031,040
Corporate/Debt
Obligations,
0.00%
to
8.94%,
due
07/25/30
to
10/20/31
.........
7,327,839
2,300,001
-
-
$
14,250,000
$
15,407,503
-
-
BNP
Paribas
SA
....
5
.70
(a)
07/31/24
11/04/24
8,250
8,250,000
8,375,400
Corporate/Debt
Obligation,
7.13%,
due
04/01/26
.........
9,237,000
9,488,154
-
-
Citigroup
Global
Markets,
Inc.
...........
5
.64
(a)
07/31/24
10/02/24
16,000
16,000,000
16,157,920
U.S.
Government
Sponsored
Agency
Obligations,
0.24%
to
5.50%,
due
05/20/41
to
02/16/64
.........
603,656,427
17,756,233
5
.66
(a)
07/31/24
11/01/24
6,000
6,000,000
6,087,730
U.S.
Government
Sponsored
Agency
Obligations
and
Corporate/Debt
Obligations,
0.07%
to
7.39%,
due
10/15/24
to
06/25/53
.........
52,246,405
6,394,183
-
-
$
22,000,000
$
24,150,416
-
-
Deutsche
Bank
Securities,
Inc.
...
5
.77
(a)
07/31/24
10/05/24
3,500
3,500,000
3,537,024
Corporate/Debt
Obligations,
4.50%
to
10.00%,
due
06/15/26
to
02/15/31
.......
6,938,399
4,200,000
-
-
Goldman
Sachs
&
Co.
LLC
...........
5
.85
(a)
07/31/24
03/04/25
20,000
20,000,000
20,702,000
Corporate/Debt
Obligations,
0.00%
to
11.40%,
due
09/28/25
to
05/25/66
.......
461,341,299
21,401,735
-
-
Mizuho
Securities
USA
LLC
...........
5
.77
(a)
07/31/24
09/05/24
3,500
3,500,000
3,520,195
Corporate/Debt
Obligations,
2.29%
to
6.66%,
due
07/18/34
to
12/20/50
.........
3,746,043
3,745,000
5
.87
(a)
07/31/24
10/31/24
19,000
19,000,000
19,285,021
Corporate/Debt
Obligation,
2.92%,
due
06/15/29
.........
21,829,000
20,330,696
-
-
$
22,500,000
$
24,075,696
-
-
Wells
Fargo
Securities
LLC
...........
5
.73
(a)
07/31/24
11/04/24
12,500
12,500,000
12,691,000
Corporate/Debt
Obligation,
0.00%,
due
09/11/24
.........
13,211,789
13,125,001
-
-
$
103,000,000
$
111,848,505
-
-
(a)
Variable
rate
security.
Rate
as
of
period
end
and
maturity
is
the
date
the
principal
owed
can
be
recovered
through
demand.
Schedule
of
Investments
(continued)
July
31,
2024
BlackRock
Short
Obligations
Fund
Schedule
of
Investments
9
Fair
Value
Hierarchy
as
of Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
description
of
the
input
levels
and
information
about
the
Fund's
policy
regarding
valuation
of
financial
instruments,
refer
to
the
Notes
to
Financial
Statements.
The
following
table
summarizes
the
Fund's
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the Schedule
of
Investments
above.
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Assets
Investments
Long-Term
Investments
Asset-Backed
Securities
...................................
$
-
$
62,260,934
$
-
$
62,260,934
Corporate
Bonds
........................................
-
419,007,744
-
419,007,744
Foreign
Agency
Obligations
.................................
-
2,517,235
-
2,517,235
Municipal
Bonds
.........................................
-
3,303,535
-
3,303,535
U.S.
Treasury
Obligations
...................................
-
17,825,326
-
17,825,326
Short-Term
Securities
Certificates
of
Deposit
.....................................
-
94,769,931
-
94,769,931
Commercial
Paper
.......................................
-
437,234,504
-
437,234,504
Repurchase
Agreements
...................................
-
103,000,000
-
103,000,000
$
-
$
1,139,919,209
$
-
$
1,139,919,209
Statement
of
Assets
and
Liabilities
July
31,
2024
2024
BlackRock
Annual
Financial
Statements
10
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
ASSETS
Investments,
at
value
-
unaffiliated
(a)
........................................................................................
$
1,036,919,209
Cash
.............................................................................................................
3,130
Repurchase
agreements,
at
value
(b)
.........................................................................................
103,000,000
Receivables:
-
Capital
shares
sold
...................................................................................................
2,686,290
Dividends
-
affiliated
.................................................................................................
1,121
Interest
-
unaffiliated
.................................................................................................
6,979,813
From
the
Manager
...................................................................................................
20
Prepaid
e
xpenses
.....................................................................................................
50,165
Total
a
ssets
.........................................................................................................
1,149,639,748
LIABILITIES
Payables:
-
Investments
purchased
................................................................................................
10,085,973
Administration
fees
...................................................................................................
55,237
Capital
shares
redeemed
...............................................................................................
5,459,792
Income
dividend
distributions
............................................................................................
20,019
Investment
advisory
fees
..............................................................................................
137,119
Trustees'
and
Officer's
fees
.............................................................................................
7,922
Other
affiliate
fees
...................................................................................................
5,928
Professional
fees
....................................................................................................
49,639
Service
fees
.......................................................................................................
109,604
Other
accrued
expenses
...............................................................................................
444,433
Total
li
abilities
........................................................................................................
16,375,666
Commitments
and
contingent
liabilities
$
-
NET
ASSETS
........................................................................................................
$
1,133,264,082
NET
ASSETS
CONSIST
OF:
Paid-in
capital
........................................................................................................
$
1,145,367,822
Accumulated
loss
.....................................................................................................
(
12,103,740
)
NET
ASSETS
........................................................................................................
$
1,133,264,082
(a)
Investments,
at
cost
-
unaffiliated
.................................................................................
$
1,036,911,664
(b)
Repurchase
agreements,
at
cost
..................................................................................
$
103,000,000
Statement
of
Assets
and
Liabilities
(continued)
July
31,
2024
11
Statement
of
Assets
and
Liabilities
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
NET
ASSET
VALUE
Institutional
Net
assets
.........................................................................................................
$
620,183,034
Shares
outstanding
...................................................................................................
61,616,827
Net
asset
value
.....................................................................................................
$
10.07
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Investor
A
Net
assets
.........................................................................................................
$
495,953,438
Shares
outstanding
...................................................................................................
49,306,618
Net
asset
value
.....................................................................................................
$
10.06
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Class
K
Net
assets
.........................................................................................................
$
17,127,610
Shares
outstanding
...................................................................................................
1,699,748
Net
asset
value
.....................................................................................................
$
10.08
Shares
authorized
...................................................................................................
Unlimited
Par
value
.........................................................................................................
$
0.001
Statement
of
Operations
Year
Ended
July
31,
2024
2024
BlackRock
Annual
Financial
Statements
12
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
INVESTMENT
INCOME
Dividends
-
affiliated
.................................................................................................
$
22,402
Interest
-
unaffiliated
.................................................................................................
64,030,013
Total
investment
income
.................................................................................................
64,052,415
EXPENSES
Investment
advisory
..................................................................................................
3,040,362
Service
-
class
specific
...............................................................................................
1,346,031
Transfer
agent
-
class
specific
..........................................................................................
546,177
Administration
.....................................................................................................
496,932
Administration
-
class
specific
..........................................................................................
245,029
Registration
.......................................................................................................
115,822
Professional
.......................................................................................................
68,222
Accounting
services
..................................................................................................
57,534
Printing
and
postage
.................................................................................................
50,081
Custodian
.........................................................................................................
25,927
Trustees
and
Officer
..................................................................................................
18,920
Miscellaneous
......................................................................................................
33,682
Total
expenses
excluding
interest
expense
.....................................................................................
6,044,719
Interest
expense
....................................................................................................
10,393
Total
expenses
.......................................................................................................
6,055,112
Less:
-
Administration
fees
waived
by
the
Manager
-
class
specific
.......................................................................
(
41,021
)
Fees
waived
and/or
reimbursed
by
the
Manager
...............................................................................
(
1,456,001
)
Transfer
agent
fees
waived
and/or
reimbursed
by
the
Manager
-
class
specific
..........................................................
(
1,587
)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
4,556,503
Net
investment
income
..................................................................................................
59,495,912
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
7,869,004
Net
realized
loss
from
investments
........................................................................................
(
3,088,547
)
Net
change
in
unrealized
appreciation
on
investments
...........................................................................
10,957,551
Net
realized
and
unrealized
gain
...........................................................................................
7,869,004
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
..................................................................
$
67,364,916
Statements
of
Changes
in
Net
Assets
13
Statements
of
Changes
in
Net
Assets
See
notes
to
financial
statements.
BlackRock
Short
Obligations
Fund
Year
Ended
07/31/24
Year
Ended
07/31/23
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..............................................................................
$
59,495,912
$
59,858,331
Net
realized
loss
..................................................................................
(
3,088,547
)
(
5,177,524
)
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
10,957,551
13,083,470
Net
increase
in
net
assets
resulting
from
operations
.............................................................
67,364,916
67,764,277
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Institutional
.....................................................................................
(
32,968,051
)
(
35,628,613
)
Investor
A
......................................................................................
(
25,448,746
)
(
22,756,450
)
Class
K
.......................................................................................
(
1,072,242
)
(
1,471,493
)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
...................................................
(59,489,039
)
(59,856,556
)
CAPITAL
SHARE
TRANSACTIONS
Net
decrease
in
net
assets
derived
from
capital
share
transactions
...................................................
(210,284,191
)
(1,138,006,863
)
NET
ASSETS
Total
decrease
in
net
assets
............................................................................
(
202,408,314
)
(
1,130,099,142
)
Beginning
of
year
....................................................................................
1,335,672,396
2,465,771,538
End
of
year
........................................................................................
$
1,133,264,082
$
1,335,672,396
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
2024
BlackRock
Annual
Financial
Statements
14
BlackRock
Short
Obligations
Fund
Institutional
Year
Ended
07/31/24
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Net
asset
value,
beginning
of
year
..............................
$
10.00
$
9.95
$
10.05
$
10.07
$
10.02
Net
investment
income
(a)
....................................
0
.50
0
.32
0
.04
0
.04
0
.17
Net
realized
and
unrealized
gain
(loss)
...........................
0
.07
0
.07
(
0
.09
)
(
0
.02
)
0
.06
Net
increase
(decrease)
from
investment
operations
...................
0.57
0.39
(0.05
)
0.02
0.23
Distributions
(b)
-
-
-
-
-
From
net
investment
income
.................................
(
0
.50
)
(
0
.34
)
(
0
.05
)
(
0
.04
)
(
0
.18
)
From
net
realized
gain
......................................
-
-
-
-
(
0
.00
)
(c)
Total
distributions
...........................................
(0.50
)
(0.34
)
(0.05
)
(0.04
)
(0.18
)
Net
asset
value,
end
of
year
..................................
$
10.07
$
10.00
$
9.95
$
10.05
$
10.07
Total
Return
(d)
Based
on
net
asset
value
.....................................
5.80
%
3.96
%
(0.51
)%
0.20
%
2.28
%
Ratios
to
Average
Net
Assets
(e)
Total
expen
ses
............................................
0.39
%
0.38
%
0.36
%
0.36
%
0.43
%
Total
expenses
after
fees
waived
and/or
reimbursed
...................
0.27
%
0.28
%
0.26
%
0.26
%
0.30
%
Net
investment
income
......................................
4.96
%
3.22
%
0.45
%
0.39
%
1.69
%
Supplemental
Data
Net
assets,
end
of
year
(000)
...................................
$
620,183
$
700,104
$
1,382,186
$
2,037,769
$
1,951,914
Portfolio
turnover
rate
........................................
34
%
18
%
36
%
67
%
40
%
(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)
15
Financial
Highlights
BlackRock
Short
Obligations
Fund
Investor
A
Year
Ended
07/31/24
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Net
asset
value,
beginning
of
year
..............................
$
9.99
$
9.94
$
10.05
$
10.06
$
10.01
Net
investment
income
(a)
....................................
0
.47
0
.30
0
.02
0
.02
0
.15
Net
realized
and
unrealized
gain
(loss)
...........................
0
.07
0
.07
(
0
.11
)
(
0
.01
)
0
.06
Net
increase
(decrease)
from
investment
operations
...................
0.54
0.37
(0.09
)
0.01
0.21
Distributions
(b)
-
-
-
-
-
From
net
investment
income
.................................
(
0
.47
)
(
0
.32
)
(
0
.02
)
(
0
.02
)
(
0
.16
)
From
net
realized
gain
......................................
-
-
-
-
(
0
.00
)
(c)
Total
distributions
...........................................
(0.47
)
(0.32
)
(0.02
)
(0.02
)
(0.16
)
Net
asset
value,
end
of
year
..................................
$
10.06
$
9.99
$
9.94
$
10.05
$
10.06
Total
Return
(d)
Based
on
net
asset
value
.....................................
5.56
%
3.73
%
(0.85
)%
0.06
%
2.08
%
Ratios
to
Average
Net
Assets
(e)
Total
expen
ses
............................................
0.63
%
0.62
%
0.61
%
0.61
%
0.59
%
Total
expenses
after
fees
waived
and/or
reimbursed
...................
0.50
%
0.50
%
0.50
%
0.50
%
0.49
%
Net
investment
income
......................................
4.73
%
3.03
%
0.19
%
0.16
%
1.47
%
Supplemental
Data
Net
assets,
end
of
year
(000)
...................................
$
495,953
$
605,942
$
1,029,382
$
2,008,368
$
2,585,292
Portfolio
turnover
rate
........................................
34
%
18
%
36
%
67
%
40
%
(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)
2024
BlackRock
Annual
Financial
Statements
16
BlackRock
Short
Obligations
Fund
Class
K
Year
Ended
07/31/24
Year
Ended
07/31/23
Year
Ended
07/31/22
Year
Ended
07/31/21
Year
Ended
07/31/20
Net
asset
value,
beginning
of
year
.............................
$
10.01
$
9.96
$
10.07
$
10.08
$
10.04
Net
investment
income
(a)
...................................
0
.50
0
.33
0
.04
0
.04
0
.18
Net
realized
and
unrealized
gain
(loss)
..........................
0
.07
0
.07
(
0
.10
)
(
0
.00
)
(b)
0
.05
Net
increase
(decrease)
from
investment
operations
..................
0.57
0.40
(0.06
)
0.04
0.23
Distributions
(c)
-
-
-
-
-
From
net
investment
income
................................
(
0
.50
)
(
0
.35
)
(
0
.05
)
(
0
.05
)
(
0
.19
)
From
net
realized
gain
.....................................
-
-
-
-
(
0
.00
)
(b)
Total
distributions
..........................................
(0.50
)
(0.35
)
(0.05
)
(0.05
)
(0.19
)
Net
asset
value,
end
of
year
.................................
$
10.08
$
10.01
$
9.96
$
10.07
$
10.08
Total
Return
(d)
Based
on
net
asset
value
....................................
5.88
%
4.04
%
(0.55
)%
0.36
%
2.28
%
Ratios
to
Average
Net
Assets
(e)
Total
expen
ses
...........................................
0.35
%
0.33
%
0.32
%
0.31
%
0.33
%
Total
expenses
after
fees
waived
and/or
reimbursed
..................
0.20
%
0.20
%
0.20
%
0.20
%
0.20
%
Net
investment
income
.....................................
5.02
%
3.27
%
0.39
%
0.41
%
1.84
%
Supplemental
Data
Net
assets,
end
of
year
(000)
..................................
$
17,128
$
29,627
$
54,203
$
537,512
$
123,417
Portfolio
turnover
rate
.......................................
34
%
18
%
36
%
67
%
40
%
(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
17
Notes
to
Financial
Statements
1.
ORGANIZATION
BlackRock
Funds
SM
(the
"Trust")
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"1940
Act"),
as
an
open-end
management
investment
company.
The Trust
is
organized
as
a
Massachusetts
business
trust.
BlackRock
Short
Obligations
Fund
(the
"Fund")
is
a
series
of
the
Trust.
The
Fund
is
classified
as
diversified.
The
Fund
offers
multiple
classes
of
shares.
All
classes
of
shares
have
identical
voting,
dividend,
liquidation
and
other
rights
and
are
subject
to
the
same
terms
and
conditions,
except
that
certain
classes
bear
expenses
related
to
the
shareholder
servicing
and
distribution
of
such
shares.
Institutional
and
Class
K
Shares
are
sold
only
to
certain
eligible
investors.
Investor
A
Shares
bear
certain
expenses
related
to
shareholder
servicing
of
such
shares.
Investor
A
Shares
are
generally
available
through
financial
intermediaries.
Each
class
has
exclusive
voting
rights
with
respect
to
matters
relating
to
its
shareholder
servicing
and
distribution
expenditures.
(a)
Investor
A
Shares
may
be
subject
to
a
CDSC
upon
redemption
of
shares
received
in
an
exchange
transaction
for
Investor A
Shares
of
a
fund
advised
by
BlackRock
Advisors,
LLC
(the
"Manager")
or
its
affiliates
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase
of
such
fund.
The
Fund,
together
with
certain
other
registered
investment
companies
advised
by
the
Manager or
its
affiliates,
is
included
in
a
complex
of
funds referred
to
as
the
BlackRock
Multi-Asset
Complex.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
("U.S.
GAAP"),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies:
Investment
Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
Dividend
income
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
dates.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
dates
at
fair
value.
Interest
income,
including
amortization
and
accretion
of
premiums
and
discounts
on
debt
securities,
is
recognized
daily
on
an
accrual
basis.
Income,
expenses
and
realized
and
unrealized
gains
and
losses
are
allocated
daily
to
each
class
based
on
its
relative
net
assets.
Bank
Overdraft:
The
Fund
had
outstanding
cash
disbursements
exceeding
deposited
cash
amounts
at
the
custodian
during
the
reporting
period.
The
Fund
is
obligated
to
repay
the
custodian
for
any
overdraft,
including
any
related
costs
or
expenses,
where
applicable.
For
financial
reporting
purposes,
overdraft
fees,
if
any,
are
included
in
interest
expense
in
the
Statement
of
Operations.
Distributions:
Distributions
from
net
investment
income
are
declared daily
and
paid
monthly.
Distributions
of
capital
gains
are
recorded
on
the
ex-dividend
dates
and
made
at
least
annually.
The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP.
Indemnifications:
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
The
Fund's
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
the
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to the
Fund
or
its
classes
are
charged
to
the
Fund
or
the
applicable
class.
Expenses
directly
related
to
the
Fund
and
other
shared
expenses
prorated
to
the
Fund
are
allocated
daily
to
each
class
based
on
its
relative
net
assets
or
other
appropriate
methods.
Other
operating
expenses
shared
by
several
funds,
including
other
funds
managed
by
the
Manager,
are
prorated
among
those
funds
on
the
basis
of
relative
net
assets
or
other
appropriate
methods.
3.
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS
Investment
Valuation
Policies:
The
Fund's
investments
are
valued
at
fair
value
(also
referred
to
as
"market
value"
within
the
financial
statements)
each
day
that
the
Fund
is
open
for
business
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Board
of
Trustees
of
the
Trust
(the
"Board")
has
approved
the
designation
of
the
Fund's
Manager
as
the
valuation
designee
for
the
Fund.
The
Fund
determines
the
fair
values
of
its
financial
instruments
using
various
independent
dealers
or
pricing
services
under
the
Manager's
policies.
If
a
security's
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
the
Manager's
policies
and
procedures
as
reflecting
fair
value.
The
Manager
has
formed
a
committee
(the
"Valuation
Committee")
to
develop
pricing
policies
and
procedures
and
to
oversee
the
pricing
function
for
all
financial
instruments,
with
assistance
from
other
BlackRock
pricing
committees.
Fair
Value
Inputs
and
Methodologies:
The
following
methods
and
inputs
are
used
to
establish
the
fair
value
of
the
Fund's
assets
and
liabilities:
Fixed-income investments
for
which
market
quotations
are
readily
available
are
generally
valued
using
the
last
available
bid
price
or
current
market
quotations
provided
by
independent
dealers
or
third-party
pricing
services. Pricing
services
generally
value
fixed-income
securities
assuming
orderly
transactions
of
an
institutional
round
lot
size,
but
a
fund
may
hold
or
transact
in
such
securities
in
smaller,
odd
lot
sizes.
Odd
lots
may
trade
at
lower
prices
than
institutional
round
lots.
The
pricing
services
may
use
matrix
pricing
or
valuation
models
that
utilize
certain
inputs
and
assumptions
to
derive
values,
including
transaction
data
(e.g.,
recent
representative
bids
and
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)
2024
BlackRock
Annual
Financial
Statements
18
offers),
market
data, credit
quality
information,
perceived
market
movements,
news,
and
other
relevant
information.
Certain
fixed-income
securities,
including
asset-
backed
and
mortgage
related
securities
may
be
valued
based
on
valuation
models
that
consider
the
estimated
cash
flows
of
each
tranche
of
the
entity,
establish
a
benchmark
yield
and
develop
an
estimated
tranche
specific
spread
to
the
benchmark
yield
based
on
the
unique
attributes
of
the
tranche.
The
amortized
cost
method
of
valuation
may
be
used
with
respect
to
debt
obligations
with
sixty
days
or
less
remaining
to
maturity
unless
the
Manager
determines
such
method
does
not
represent
fair
value.
Repurchase
agreements
are
valued
at
amortized
cost,
which
approximates
market
value.
If
events
(e.g.,
market
volatility,
company
announcement or
a
natural
disaster)
occur
that
are
expected
to
materially
affect
the
value
of
such
investment,
or
in
the
event
that application
of
these
methods
of
valuation
results
in
a
price
for
an
investment
that
is
deemed
not
to
be
representative
of
the
market
value
of
such
investment,
or
if
a
price
is
not
available,
the
investment
will
be
valued
by
the
Valuation
Committee
in
accordance
with the
Manager's policies
and
procedures
as
reflecting
fair
value
("Fair
Valued
Investments").
The
fair
valuation
approaches
that
may
be
used
by
the
Valuation
Committee include
market
approach,
income
approach
and
cost
approach.
Valuation
techniques
such
as
discounted
cash
flow,
use
of
market
comparables
and
matrix
pricing
are
types
of
valuation
approaches
and
are
typically
used
in
determining
fair
value.
When
determining
the
price
for
Fair
Valued
Investments,
the
Valuation
Committee
seeks
to
determine
the
price
that
the
Fund
might
reasonably
expect
to
receive
or
pay
from
the
current
sale
or
purchase
of
that
asset
or
liability
in
an
arm's-length
transaction.
Fair
value
determinations
shall
be
based
upon
all
available
factors
that
the
Valuation
Committee
deems
relevant
and
consistent
with
the
principles
of
fair
value
measurement.
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows:
Level
1
-
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
the
Fund
has
the
ability
to
access;
Level
2
-
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market-corroborated
inputs);
and
Level
3 -
Unobservable
inputs
based
on
the
best
information
available
in
the
circumstances,
to
the
extent
observable
inputs
are
not
available
(including
the
Valuation
Committee's
assumptions
used
in
determining
the
fair
value
of
financial
instruments).
The
hierarchy
gives
the
highest
priority
to
unadjusted
quoted
prices
in
active
markets
for
identical
assets
or
liabilities
(Level
1
measurements)
and
the
lowest
priority
to
unobservable
inputs
(Level
3
measurements).
Accordingly,
the
degree
of
judgment
exercised
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
The
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
fair
value
hierarchy
classification
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety. Investments
classified
within
Level
3
have
significant
unobservable
inputs
used
by
the
Valuation
Committee
in
determining
the
price
for
Fair
Valued
Investments.
Level
3
investments
include
equity
or
debt
issued
by
privately
held
companies
or
funds
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
4.
SECURITIES
AND
OTHER
INVESTMENTS
Asset-Backed
and
Mortgage-Backed
Securities:
Asset-backed
securities
are
generally
issued
as
pass-through
certificates
or
as
debt
instruments.
Asset-backed
securities
issued
as
pass-through
certificates
represent
undivided
fractional
ownership
interests
in
an
underlying
pool
of
assets.
Asset-backed
securities
issued
as
debt
instruments,
which
are
also
known
as
collateralized
obligations,
are
typically
issued
as
the
debt
of
a
special
purpose
entity
organized
solely
for
the
purpose
of
owning
such
assets
and
issuing
such
debt.
Asset-backed
securities
are
often
backed
by
a
pool
of
assets
representing
the
obligations
of
a
number
of
different
parties.
The
yield
characteristics
of
certain
asset-backed
securities
may
differ
from
traditional
debt
securities.
One
such
major
difference
is
that
all
or
a
principal
part
of
the
obligations
may
be
prepaid
at
any
time
because
the
underlying
assets
(i.e.,
loans)
may
be
prepaid
at
any
time.
As
a
result,
a
decrease
in
interest
rates
in
the
market
may
result
in
increases
in
the
level
of
prepayments
as
borrowers,
particularly
mortgagors,
refinance
and
repay
their
loans.
An
increased
prepayment
rate
with
respect
to
an
asset-backed
security
will
have
the
effect
of
shortening
the
maturity
of
the
security.
In
addition,
a
fund
may
subsequently
have
to
reinvest
the
proceeds
at
lower
interest
rates.
If
a
fund
has
purchased
such
an
asset-backed
security
at
a
premium,
a
faster
than
anticipated
prepayment
rate
could
result
in
a
loss
of
principal
to
the
extent
of
the
premium
paid.
For
mortgage
pass-through
securities
(the
"Mortgage
Assets")
there
are
a
number
of
important
differences
among
the
agencies
and
instrumentalities
of
the
U.S.
Government
that
issue
mortgage-related
securities
and
among
the
securities
that
they
issue.
For
example,
mortgage-related
securities
guaranteed
by
Ginnie
Mae
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
Ginnie
Mae
and
such
guarantee
is
backed
by
the
full
faith
and
credit
of
the
United
States.
However,
mortgage-related
securities
issued
by
Freddie
Mac
and
Fannie
Mae,
including
Freddie
Mac
and
Fannie
Mae
guaranteed
mortgage
pass-through
certificates,
which
are
solely
the
obligations
of
Freddie
Mac
and
Fannie
Mae,
are
not
backed
by
or
entitled
to
the
full
faith
and
credit
of
the
United
States,
but
are
supported
by
the
right
of
the
issuer
to
borrow
from
the
U.S.
Treasury.
Non-agency
mortgage-backed
securities
are
securities
issued
by
non-governmental
issuers
and
have
no
direct
or
indirect
government
guarantees
of
payment
and
are
subject
to
various
risks.
Non-agency
mortgage
loans
are
obligations
of
the
borrowers
thereunder
only
and
are
not
typically
insured
or
guaranteed
by
any
other
person
or
entity.
The
ability
of
a
borrower
to
repay
a
loan
is
dependent
upon
the
income
or
assets
of
the
borrower.
A
number
of
factors,
including
a
general
economic
downturn,
acts
of
God,
terrorism,
social
unrest
and
civil
disturbances,
may
impair
a
borrower's
ability
to
repay
its
loans.
Repurchase
Agreements:
Repurchase
agreements
are
commitments
to
purchase
a
security
from
a
counterparty
who
agrees
to
repurchase
the
same
security
at
a
mutually
agreed
upon
date
and
price.
On
a
daily
basis,
the
counterparty
is
required
to
maintain
collateral
subject
to
the
agreement
and
in
value
no
less
than
the
agreed
upon
repurchase
amount.
Repurchase
agreements
may
be
traded
bilaterally,
in
a
tri-party
arrangement
or
may
be
centrally
cleared
through
a
sponsoring
agent.
Subject
to
the
custodial
undertaking
associated
with
a
tri-party
repurchase
arrangement
and
for
centrally
cleared
repurchase
agreements,
a
third-party
custodian
maintains
accounts
to
hold
collateral
for a
fund
and
its
counterparties.
Typically,
a
fund
and
counterparty
are
not
permitted
to
sell,
re-pledge
or
use
the
collateral
absent
a
default
by
the
counterparty
or the
fund,
respectively.
Notes
to
Financial
Statements
(continued)
19
Notes
to
Financial
Statements
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,
2024,
the
class
specific
service
fees
borne
directly
by Investor
A Shares
of
the
Fund
were
$1,346,031.
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,
2024, the
following
table
shows
the
class
specific
administration
fees
borne
directly
by
each
share
class
of
the
Fund:
Transfer
Agent:
Pursuant
to
written
agreements,
certain
financial
intermediaries,
some
of
which
may
be
affiliates,
provide
the
Fund
with
sub-accounting,
recordkeeping,
sub-transfer
agency
and
other
administrative
services
with
respect
to
servicing
of
underlying
investor
accounts.
For
these
services,
these
entities
receive
an
asset-based
fee
or
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets.
For
the
year ended July
31,
2024,
the
Fund
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
billion
.........................................................................................................
0.25%
$1
billion
-
$3
billion
.....................................................................................................
0.24
$3
billion
-
$5
billion
.....................................................................................................
0.23
$5
billion
-
$10
billion
....................................................................................................
0.22
Greater
than
$10
billion
...................................................................................................
0.21
Share
Class
Service
Fees
Investor
A
..............................................................................................................
0.25
%
Average
Daily
Net
Assets
Administration
Fees
First
$500
million
......................................................................................................
0.0425%
$500
million
-
$1
billion
..................................................................................................
0.0400
$1
billion
-
$2
billion
....................................................................................................
0.0375
$2
billion
-
$4
billion
....................................................................................................
0.0350
$4
billion
-
$13
billion
...................................................................................................
0.0325
Greater
than
$13
billion
..................................................................................................
0.0300
Institutional
Investor
A
Class
K
Total
Administration
fees
-
class
specific
.......................................................
$
133,076
$
107,682
$
4,271
$
245,029
Notes
to
Financial
Statements
(continued)
2024
BlackRock
Annual
Financial
Statements
20
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,
2024,
the
Fund
reimbursed
the
Manager
the
following
amounts
for
costs
incurred
in
running
the
call
center,
which
are
included
in
transfer
agent
-
class
specific
in
the
Statement
of
Operations:
For
the
year ended
July
31,
2024,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Other
Fees:
For
the
year
ended
July
31,
2024
,
affiliates
received
CDSCs
of
$
2,062
for
Investor
A
Shares.
Expense
Limitations,
Waivers
and
Reimbursements:
The
Manager
contractually
agreed
to
waive
its
investment
advisory
fees
by
the
amount
of
investment
advisory
fees
the
Fund
pays
to
the
Manager
indirectly
through
its
investment
in
affiliated
money
market
funds
(the
"affiliated
money
market
fund
waiver")
through
June
30,
2025.
The
contractual
agreement
may
be
terminated
upon
90
days'
notice
by
a
majority
of
the
trustees
who
are
not
"interested
persons"
of
the
Trust,
as
defined
in
the
1940
Act
("Independent
Trustees")
,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
The
amount
of
waivers
and/or
reimbursements
of
fees
and
expenses
made
pursuant
to
the
expense
limitation
described
below
will
be
reduced
by
the
amount
of
the
affiliated
money
market
fund
waiver. This
amount
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
For
the
year
ended
July
31,
2024,
the
amount
waived
was
$281.
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of
the
Fund's
assets
invested
in
affiliated
equity
and
fixed-income mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
June
30,
2025.
The
contractual
agreement
may
be
terminated
upon
90
days'
notice
by
a
majority
of
the
Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
For
the
year
ended
July
31,
2024,
there
were
no
fees
waived
by
the
Manager
pursuant
to
this
arrangement.
The
Manager
contractually
and/or
voluntarily
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
expenses,
excluding
interest
expense,
dividend
expense,
tax
expense,
acquired
fund
fees
and
expenses,
and
certain
other
fund
expenses,
which
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of
the
Fund's
business
("expense
limitation").
The
expense
limitations
as
a
percentage
of
average
daily
net
assets
are
as
follows:
For
the
year
ended
July
31,
2024,
the
Manager
waived
and/or
reimbursed
investment
advisory
fees
of
$1,455,720
which
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statement
of
Operations.
In
addition,
these
amounts
waived
and/or
reimbursed
by
the
Manager are
included
in
the
Statement
of
Operations.
For
the
year ended
July
31,
2024,
class
specific
expense
waivers
and/or
reimbursements were as
follows:
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
"Order")
from
the
U.S.
Securities
and
Exchange
Commission
("SEC"),
the
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
"Interfund
Lending
Program"),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by
the
Fund's
investment
policies
and
restrictions.
The
Fund
is
currently
permitted
to
borrow
and
lend
under
the
Interfund
Lending
Program.
A
lending
BlackRock
fund
may
lend
in
aggregate
up
to
15%
of
its
net
assets
but
may
not
lend
more
than
5%
of
its
net
assets
to
any
one
borrowing
fund
through
the
Interfund
Lending
Program.
A
borrowing
BlackRock
fund
may
not
borrow
through
the
Interfund
Lending
Program
or
from
any
other
source
more
than
33
1/3%
of
its
total
assets
(or
any
lower
threshold
provided
for
by
the fund's
investment
restrictions).
If
a
borrowing
BlackRock
fund's
total
outstanding
borrowings
exceed
10%
of
its
total
assets,
each
of
its
outstanding
interfund
loans
will
be
subject
to
collateralization
of
at
least
102%
of
the
outstanding
principal
value
of
the
loan.
All
interfund
loans
are
for
temporary
or
emergency
purposes
and
the
interest
rate
to
be
charged
will
be
the
average
of
the
highest
current
overnight
repurchase
agreement
rate
available
to
a
lending
fund
and
the
bank
loan
rate,
as
calculated
according
to
a
formula
established
by
the
Board.
During the
year
ended
July
31,
2024,
the
Fund
did
not
participate
in
the
Interfund
Lending
Program.
Trustees
and
Officers:
Certain
trustees
and/or
officers
of
the Trust are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Fund
reimburses
the
Manager
for
a
portion
of
the
compensation
paid
to
the
Fund's
Chief
Compliance
Officer,
which
is
included
in
Trustees and
Officer
in
the
Statement
of
Operations.
Institutional
Investor
A
Total
Reimbursed
Amount
..............................................................................
$
822
$
4,202
$
5,024
Institutional
Investor
A
Class
K
Total
Transfer
agent
fees
-
class
specific
.......................................................
$
345,542
$
199,048
$
1,587
$
546,177
Contractual
(a)
Voluntary
(b)
Institutional
................................................................................................
0.35%
0.30%
Investor
A
.................................................................................................
0.60
0.50
Class
K
..................................................................................................
0.30
0.20
(a)
The
Manager
has
agreed
not
to
reduce
or
discontinue
this
contractual
waiver
or
reimbursement
through
June
30,
2025,
unless
approved
by
the
Board,
including
a
majority
of
the
Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
(b)
The
voluntary
waiver
or
reimbursement
may
be
reduced
or
discontinued
at
any
time
without
notice.
Share
Class
Administration
Fees
Waived
by
the
Manager
-
Class
Specific
Transfer
Agent
Fees
Waived
and/or
Reimbursed
by
the
Manager
-
Class
Specific
Investor
A
.....................................................................................
$
36,750
$
-
Class
K
......................................................................................
4,271
1,587
$
41,021
$
1,587
Notes
to
Financial
Statements
(continued)
21
Notes
to
Financial
Statements
6.
PURCHASES
AND
SALES
For
the
year ended
July
31,
2024,
purchases
and
sales
of
investments, excluding
short-term
investments,
were
as
follows:
7.
INCOME
TAX
INFORMATION
It
is
the
Fund's
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required.
The
Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
the
Fund's
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
years
after
they
are
filed.
The
statutes
of
limitations
on
the
Fund's
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction.
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Fund
as
of
July
31,
2024,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Fund's
financial
statements.
The
tax
character
of
distributions
paid
was
as
follows:
As
of
July
31,
2024,
the
tax
components
of
accumulated earnings
(loss) were
as
follows:
(a)
Amounts
available
to
offset
future
realized
capital
gains.
As
of
July
31,
2024, gross
unrealized
appreciation
and
depreciation
based
on
cost
of
investments
(including
short
positions
and
derivatives,
if
any)
for
U.S.
federal
income
tax
purposes
were
as
follows:
8.
BANK
BORROWINGS
The
Trust,
on
behalf
of
the
Fund,
along
with
certain
other
funds
managed
by
the
Manager
and
its
affiliates
("Participating
Funds"), is
party
to
a
364-day,
$2.40
billion
credit
agreement
with
a
group
of
lenders.
Under
this
agreement,
the
Fund
may
borrow
to
fund
shareholder
redemptions.
Excluding
commitments
designated
for
certain
individual
funds,
the
Participating
Funds,
including
the
Fund,
can
borrow
up
to
an
aggregate
commitment
amount
of
$1.75
billion
at
any
time
outstanding,
subject
to
asset
coverage
and
other
limitations
as
specified
in
the
agreement.
The
credit
agreement
has
the
following
terms:
a
fee
of
0.10%
per
annum
on
unused
commitment
amounts
and
interest
at
a
rate
equal
to
the
higher
of
(a)
Overnight
Bank
Funding
Rate
("OBFR")
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.80%
per
annum,
(b)
the
Fed
Funds
rate
(but,
in
any
event,
not
less
than
0.00%)
in
effect
from
time
to
time
plus
0.80%
per
annum
on
amounts
borrowed
or
(c)
the
sum
of
(x)
Daily
Simple
Secured
Overnight
Financing
Rate
("SOFR")
(but,
in
any
event,
not
less
than
0.00%)
on
the
date
the
loan
is
made
plus
0.10%
and
(y)
0.80%
per
annum. The
agreement
expires
in
April
2025
unless
extended
or
renewed.
Prior
to
April
11,
2024,
the
aggregate
commitment
amount
was
$2.50
billion.
These
fees
were
allocated
among
such
funds
based
upon
portions
of
the
aggregate
commitment
available
to
them
and
relative
net
assets
of
Participating
Funds.
During
the
year ended
July
31,
2024,
the
Fund
did
not
borrow
under
the
credit
agreement.
9.
PRINCIPAL
RISKS
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Fund
and its
investments.
The
Fund's
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject.
U.S.
Government
Securities
Other
Securities
Fund
Name
Purchases
Purchases
Sales
BlackRock
Short
Obligations
Fund
..........................................................
$
17,697,659
$
193,763,781
$
568,181,299
Fund
Name
Year
Ended
07/31/24
Year
Ended
07/31/23
BlackRock
Short
Obligations
Fund
Ordinary
income
...........................................................................................
$
59,489,039
$
59,856,556
Fund
Name
Undistributed
Ordinary
Income
Non-Expiring
Capital
Loss
Carryforwards
(a)
Net
Unrealized
Gains
(Losses)
Total
BlackRock
Short
Obligations
Fund
...........................................
$
114,984
$
(12,226,269)
$
7,545
$
(12,103,740)
Fund
Name
Tax
Cost
Gross
Unrealized
Appreciation
Gross
Unrealized
Depreciation
Net
Unrealized
Appreciation
(Depreciation)
BlackRock
Short
Obligations
Fund
......................................
$
1,139,911,664
$
1,224,384
$
(1,216,839)
$
7,545
Notes
to
Financial
Statements
(continued)
2024
BlackRock
Annual
Financial
Statements
22
Market Risk:
The
Fund
may
be
exposed
to
prepayment
risk,
which
is
the
risk
that
borrowers
may
exercise
their
option
to
prepay
principal
earlier
than
scheduled
during
periods
of
declining
interest
rates,
which
would
force
the
Fund
to
reinvest
in
lower
yielding
securities. The
Fund
may
also
be
exposed
to
reinvestment
risk,
which
is
the
risk
that
income
from
the
Fund's
portfolio
will
decline
if
the Fund
invests
the
proceeds
from
matured,
traded
or
called
fixed-income
securities
at
market
interest
rates
that
are
below
the
Fund
portfolio's
current
earnings
rate.
Municipal
securities
are
subject
to
the
risk
that
litigation,
legislation
or
other
political
events,
local
business
or
economic
conditions,
credit
rating
downgrades,
or
the
bankruptcy
of
the
issuer
could
have
a
significant
effect
on
an
issuer's
ability
to
make
payments
of
principal
and/or
interest
or
otherwise
affect
the
value
of
such
securities.
Municipal
securities
can
be
significantly
affected
by
political
or
economic
changes,
including
changes
made
in
the
law
after
issuance
of
the
securities,
as
well
as
uncertainties
in
the
municipal
market
related
to,
taxation,
legislative
changes
or
the
rights
of
municipal
security
holders,
including
in
connection
with
an
issuer
insolvency.
Municipal
securities
backed
by
current
or
anticipated
revenues
from
a
specific
project
or
specific
assets
can
be
negatively
affected
by
the
discontinuance
of
the
tax
benefits
supporting
the
project
or
assets
or
the
inability
to
collect
revenues
for
the
project
or
from
the
assets.
Municipal
securities
may
be
less
liquid
than
taxable
bonds,
and
there
may
be
less
publicly
available
information
on
the
financial
condition
of
municipal
security
issuers
than
for
issuers
of
other
securities.
Counterparty
Credit
Risk:
The
Fund
may
be
exposed
to
counterparty
credit
risk,
or
the
risk
that
an
entity
may
fail
to
or
be
unable
to
perform
on
its
commitments
related
to
unsettled
or
open
transactions,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Fund
manages
counterparty
credit
risk
by
entering
into
transactions
only
with
counterparties
that
the
Manager
believes
have
the
financial
resources
to
honor
their
obligations
and
by
monitoring
the
financial
stability
of
those
counterparties.
Financial
assets,
which
potentially
expose
the
Fund
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
receivables
due
from
counterparties.
The
extent
of
the
Fund's
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statement
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Fund.
Geographic/Asset
Class
Risk:
A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund's
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within
the
Fund's
portfolio
are
disclosed
in
its Schedule
of
Investments.
The
Fund
invests
a
significant
portion
of
its
assets
in fixed-income securities and/or uses
derivatives tied
to
the
fixed-income
markets.
Changes
in
market
interest
rates
or
economic
conditions
may affect
the
value
and/or
liquidity
of
such investments.
Interest
rate
risk
is
the
risk
that
prices
of
bonds
and
other
fixed-income
securities
will
decrease
as
interest
rates
rise
and
increase
as
interest
rates
fall.
The
Fund
may
be
subject
to
a
greater
risk
of
rising
interest
rates
during
a
period
of
historically
low
interest
rates. The
Federal
Reserve
has
raised
the
federal
funds
rate
as
part
of
its
efforts
to
address
inflation.
Changing
interest
rates
may
have
unpredictable
effects
on
markets,
may
result
in
heightened
market
volatility,
and
could
negatively
impact
the
Fund's
performance.
The
Fund
invests
a
significant
portion
of
its
assets
in
securities
of
issuers
located
in
the
United
States.
A
decrease
in
imports
or
exports,
changes
in
trade
regulations,
inflation
and/or
an
economic
recession
in
the
United
States
may
have
a
material
adverse
effect
on
the
U.S.
economy
and
the
securities
listed
on
U.S.
exchanges.
Proposed
and
adopted
policy
and
legislative
changes
in
the
United
States
may
also
have
a
significant
effect
on
U.S.
markets
generally,
as
well
as
on
the
value
of
certain
securities.
Governmental
agencies
project
that
the
United
States
will
continue
to
maintain
elevated
public
debt
levels
for
the
foreseeable
future
which
may
constrain
future
economic
growth.
Circumstances
could
arise
that
could
prevent
the
timely
payment
of
interest
or
principal
on
U.S.
government
debt,
such
as
reaching
the
legislative
"debt
ceiling."
Such
non-payment
would
result
in
substantial
negative
consequences
for
the
U.S.
economy
and
the
global
financial
system.
If
U.S.
relations
with
certain
countries
deteriorate,
it
could
adversely
affect
issuers
that
rely
on
the
United
States
for
trade.
The
United
States
has
also
experienced
increased
internal
unrest
and
discord.
If
these
trends
were
to
continue,
they
may
have
an
adverse
impact
on
the
U.S.
economy
and
the
issuers
in
which
the
Fund
invests.
Certain
Funds
invest
a
significant
portion
of
their
assets
within
the
financials
sector.
Performance
of
companies
in
the
financials
sector
may
be
adversely
impacted
by
many
factors,
including,
among
others,
changes
in
government
regulations,
economic
conditions,
and
interest
rates,
credit
rating
downgrades,
adverse
public
perception,
exposure
concentration
and
decreased
liquidity
in
credit
markets.
The
impact
of
changes
in
capital
requirements
and
recent
or
future
regulation
on
any
individual
financial
company,
or
on
the
financials
sector
as
a
whole,
cannot
be
predicted,
but
may
negatively
impact
the
Funds.
Significant
Shareholder
Redemption
Risk:
Certain
shareholders
may
own
or
manage
a
substantial
amount
of
fund
shares
and/or
hold
their
fund
investments
for
a
limited
period
of
time.
Large
redemptions
of
fund
shares
by
these
shareholders
may
force
a
fund
to
sell
portfolio
securities,
which
may
negatively
impact
the
fund's
NAV,
increase
the
fund's
brokerage
costs,
and/or
accelerate
the
realization
of
taxable
income/gains
and
cause
the
fund
to
make
additional
taxable
distributions
to
shareholders.
LIBOR
Transition
Risk:
The
Fund
may
be
exposed
to
financial
instruments
that
recently
transitioned
from,
or
continue
to
be
tied
to,
the
London
Interbank
Offered
Rate
("LIBOR")
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
United
Kingdom's
Financial
Conduct
Authority,
which
regulates
LIBOR,
has
ceased
publishing
all
LIBOR
settings,
but
some
USD
LIBOR
settings
will
continue
to
be
published
under
a
synthetic
methodology
until
September
30,
2024
for
certain
legacy
contracts.
SOFR
has
been
used
increasingly
on
a
voluntary
basis
in
new
instruments
and
transactions.
Under
U.S.
regulations
that
implement
a
statutory
fallback
mechanism
to
replace
LIBOR,
benchmark
rates
based
on
SOFR
have
replaced
LIBOR
in
certain
financial
contracts.
The
ultimate
effect
of
the
LIBOR
transition
process
on
the
Fund
is
uncertain.
Notes
to
Financial
Statements
(continued)
23
Notes
to
Financial
Statements
10.
CAPITAL
SHARE
TRANSACTIONS
Transactions
in
capital
shares
for
each
class
were
as
follows:
11.
SUBSEQUENT
EVENTS
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Fund
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Year
Ended
07/31/24
Year
Ended
07/31/23
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
BlackRock
Short
Obligations
Fund
Institutional
Shares
sold
.............................................
36,753,901
$
368,803,781
89,765,988
$
893,322,897
Shares
issued
in
reinvestment
of
distributions
........................
3,281,907
32,938,211
3,573,388
35,604,943
Shares
redeemed
.........................................
(48,436,928)
(485,868,813)
(162,290,630)
(1,615,604,764)
(8,401,120)
$
(84,126,821)
(68,951,254)
$
(686,676,924)
Investor
A
Shares
sold
.............................................
12,761,179
$
127,989,306
10,075,898
$
100,311,541
Shares
issued
in
reinvestment
of
distributions
........................
2,531,841
25,393,681
2,275,377
22,661,582
Shares
redeemed
.........................................
(26,626,421)
(266,901,109)
(55,265,176)
(549,602,427)
(11,333,401)
$
(113,518,122)
(42,913,901)
$
(426,629,304)
Class
K
Shares
sold
.............................................
215,131
$
2,159,161
2,740,282
$
27,299,563
Shares
issued
in
reinvestment
of
distributions
........................
74,494
748,430
69,443
692,846
Shares
redeemed
.........................................
(1,549,227)
(15,546,839)
(5,292,196)
(52,693,044)
(1,259,602)
$
(12,639,248)
(2,482,471)
$
(24,700,635)
(20,994,123)
$
(210,284,191)
(114,347,626)
$
(1,138,006,863)
Report
of
Independent
Registered
Public
Accounting
Firm
2024
BlackRock
Annual
Financial
Statements
24
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,
2024,
the
related
statement
of
operations
for
the
year
ended
July
31,
2024,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
July
31,
2024,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
July
31,
2024
(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,
2024,
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,
2024
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
July
31,
2024
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,
2024
by
correspondence
with
the
custodian
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,
2024
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
2000.
Important
Tax
Information
(unaudited)
25
Important
Tax
Information
The
Fund
hereby
designates
the
following
amount,
or
maximum
amount
allowable
by
law,
of
distributions
from
direct
federal
obligation
interest
for
the
fiscal
year
ended
July
31,
2024:
The
law
varies
in
each
state
as
to
whether
and
what
percent
of
ordinary
income
dividends
attributable
to
federal
obligations
is
exempt
from
state
income
tax.
Shareholders
are
advised
to
check
with
their
tax
advisers
to
determine
if
any
portion
of
the
dividends
received
is
exempt
from
state
income
tax.
The
Fund
hereby
designates
the
following
amount,
or
maximum
amount
allowable
by
law,
as
interest
income
eligible
to
be
treated
as
a
Section
163(j)
interest
dividend
for
the
fiscal
year
ended
July
31,
2024:
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,
2024:
Fund
Name
Federal
Obligation
Interest
BlackRock
Short
Obligations
Fund
.......................................................................................
$
752,258
Fund
Name
Interest
Dividends
BlackRock
Short
Obligations
Fund
.......................................................................................
$
59,490,320
Fund
Name
Interest-Related
Dividends
BlackRock
Short
Obligations
Fund
.......................................................................................
$
43,244,294
Additional
Information
2024
BlackRock
Annual
Financial
Statements
26
Changes
in
and
Disagreements
with
Accountants
Not
applicable.
Proxy
Results
Not
applicable.
Remuneration
Paid
to
Trustees,
Officers,
and
Others
Compensation
to
the
independent
directors/trustees
of
the
Trust
is
paid
by
the
Trust,
on
behalf
of
the
Fund.
General
Information
Quarterly
performance,
semi-annual
and
annual
reports,
current
net
asset
value
and
other
information
regarding
the
Fund
may
be
found
on
BlackRock's
website,
which
can
be
accessed
at
blackrock.com
.
Any
reference
to
BlackRock's
website
in
this
report
is
intended
to
allow
investors
public
access
to
information
regarding
the
Fund
and
does
not,
and
is
not
intended
to,
incorporate
BlackRock's
website
in
this
report.
Electronic
Delivery
Shareholders
can
sign
up
for
e-mail
notifications
of
quarterly
statements,
annual
and
semi-annual
shareholder
reports
and
prospectuses
by
enrolling
in
the
electronic
delivery
program.
To
enroll
in
electronic
delivery:
Shareholders
Who
Hold
Accounts
with
Investment
Advisors,
Banks
or
Brokerages:
Please
contact
your
financial
advisor.
Please
note
that
not
all
investment
advisors,
banks
or
brokerages
may
offer
this
service.
Shareholders
Who
Hold
Accounts
Directly
with
BlackRock:
1.
Access
the
BlackRock
website
at
blackrock.com
2.
Select
"Access
Your
Account"
3.
Next,
select
"eDelivery"
in
the
"Related
Resources"
box
and
follow
the
sign-up
instructions.
BlackRock's
Mutual
Fund
Family
BlackRock
offers
a
diverse
lineup
of
open-end
mutual
funds
crossing
all
investment
styles
and
managed
by
experts
in
equity,
fixed-income
and
tax-exempt
investing.
Visit
blackrock.com
for
more
information.
Shareholder
Privileges
Account
Information
Call
us
at
(800)
441-7762
from
8:00
AM
to
6:00
PM
ET
on
any
business
day
to
get
information
about
your
account
balances,
recent
transactions
and
share
prices.
You
can
also
visit
blackrock.com
for
more
information.
Automatic
Investment
Plans
Investor
class
shareholders
who
want
to
invest
regularly
can
arrange
to
have
$50
or
more
automatically
deducted
from
their
checking
or
savings
account
and
invested
in
any
of
the
BlackRock
funds.
Systematic
Withdrawal
Plans
Investor
class
shareholders
can
establish
a
systematic
withdrawal
plan
and
receive
periodic
payments
of
$50
or
more
from
their
BlackRock
funds,
as
long
as
their
account
balance
is
at
least
$10,000.
Retirement
Plans
Shareholders
may
make
investments
in
conjunction
with
Traditional,
Rollover,
Roth,
Coverdell,
Simple
IRAs,
SEP
IRAs
and
403(b)
Plans.
Additional
Information
(continued)
27
Additional
Information
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Adviser
BlackRock
International
Limited
Edinburgh,
EH3
8JB
United
Kingdom
Accounting
Agent
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
Transfer
Agent
BNY
Mellon
Investment
Servicing
(US)
Inc.
Wilmington,
DE
19809
Custodians
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
The
Bank
of
New
York
Mellon
New
York,
NY
10286
Independent
Registered
Public
Accounting
Firm
PricewaterhouseCoopers
LLP
Philadelphia,
PA
19103
Distributor
BlackRock
Investments,
LLC
New
York,
NY
10001
Legal
Counsel
Sidley
Austin
LLP
New
York,
NY
10019
Address
of
the
Trust
100
Bellevue
Parkway
Wilmington,
DE
19809
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
2024
BlackRock
Annual
Financial
Statements
28
The
Board
of
Trustees
(the
"Board,"
the
members
of
which
are
referred
to
as
"Board
Members")
of
BlackRock
Funds
(the
"Trust")
met
on
April
16,
2024
(the
"April
Meeting")
and
May
16-17,
2024
(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
of
which
extended
over
a
two-day
period,
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
regarding
the
renewal
of
the
Agreements.
In
considering
the
renewal
of
the
Agreements,
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'
investment
performance
analyses,
and
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,
and
such
responses
were
reviewed
by
the
Board
Members.
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
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)
29
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
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
experience
of
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.
The
Board
noted
that
the
engagement
of
the
Sub-Advisor
with
respect
to
the
Fund
facilitates
the
provision
of
investment
advice
and
trading
by
investment
personnel
out
of
non-U.S.
jurisdictions.
The
Board
considered
that
this
arrangement
provides
additional
flexibility
to
the
portfolio
management
team,
which
may
benefit
the
Fund
and
its
shareholders.
B.
The
Investment
Performance
of
the
Fund
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,
2023,
as
compared
to
its
Performance
Peers.
Broadridge
ranks
funds
in
quartiles,
ranging
from
first
to
fourth,
where
first
is
the
most
desirable
quartile
position
and
fourth
is
the
least
desirable.
In
connection
with
its
review,
the
Board
received
and
reviewed
information
regarding
the
investment
performance
of
the
Fund
as
compared
to
its
Performance
Peers
and
the
respective
Lipper
Classification
("Lipper
Classification").
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
that
existed
for
a
portion
of
the
relative
periods.
In
addition
to
reviewing
the
Fund's
performance
and
current
yield,
it
also
reviews
the
liquidity,
duration,
credit
quality
and
other
risk
factors
of
the
Fund's
portfolio.
The
Board
noted
that
for
the
one-
and
three-year
periods
reported,
the
Fund
ranked
in
the
fourth
and
second
quartiles,
respectively,
against
its
Lipper
Classification.
The
Board
noted
that
BlackRock
believes
that
the
Lipper
Classification
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
The
Board
and
BlackRock
reviewed
the
Fund's
underperformance
relative
to
its
Lipper
Classification
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
that
the
fee
and
expense
information
in
the
Broadridge
report
for
the
Fund
reflected
information
for
a
specific
period
and
that
historical
asset
levels
and
expenses
may
differ
from
current
levels,
particularly
in
a
period
of
market
volatility.
The
Board
considered
the
services
provided
and
the
fees
charged
by
BlackRock
and
its
affiliates
to
other
types
of
clients
with
similar
investment
mandates,
as
applicable,
including
institutional
accounts
and
sub-advised
mutual
funds
(including
mutual
funds
sponsored
by
third
parties).
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
(continued)
2024
BlackRock
Annual
Financial
Statements
30
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,
2023
compared
to
available
aggregate
estimated
profitability
data
provided
for
the
prior
two
years.
The
Board
reviewed
BlackRock's
estimated
profitability
with
respect
to
certain
other
U.S.
fund
complexes
managed
by
the
Manager
and/or
its
affiliates.
The
Board
reviewed
BlackRock's
assumptions
and
methodology
of
allocating
expenses
in
the
estimated
profitability
analysis,
noting
the
inherent
limitations
in
allocating
costs
among
various
advisory
products.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors
including,
among
other
things,
fee
waivers
and
expense
reimbursements
by
the
Manager,
the
types
of
funds
managed,
precision
of
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
the
individual
fund
level
is
difficult.
The
Board
noted
that,
in
general,
individual
fund
or
product
line
profitability
of
other
advisors
is
not
publicly
available.
The
Board
reviewed
BlackRock's
overall
operating
margin,
in
general,
compared
to
that
of
certain
other
publicly
traded
asset
management
firms.
The
Board
considered
the
differences
between
BlackRock
and
these
other
firms,
including
the
contribution
of
technology
at
BlackRock,
BlackRock's
expense
management,
and
the
relative
product
mix.
The
Board
considered
whether
BlackRock
has
the
financial
resources
necessary
to
attract
and
retain
high
quality
investment
management
personnel
to
perform
its
obligations
under
the
Agreements
and
to
continue
to
provide
the
high
quality
of
services
that
is
expected
by
the
Board.
The
Board
further
considered
factors
including
but
not
limited
to
BlackRock's
commitment
of
time
and
resources,
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
that
existed
for
a
portion
of
the
relative
periods,
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
third
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
additionally
noted
that
the
breakpoints
can,
conversely,
adjust
the
advisory
fee
rate
upward
as
the
size
of
the
Fund
decreases
below
certain
contractually
specified
levels.
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
any
economies
of
scale
might
benefit
the
Fund
in
a
variety
of
ways
as
the
assets
of
the
Fund
increase.
The
Board
considered
multiple
factors,
including
the
advisory
fee
rate
and
breakpoints,
unitary
fee
structure,
fee
waivers,
and/or
expense
caps,
as
applicable.
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.
With
respect
to
securities
lending,
during
the
year
the
Board
also
considered
information
provided
by
independent
third-party
consultants
related
to
the
performance
of
each
BlackRock
affiliate
as
securities
lending
agent.
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,
in
a
continuation
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,
2025,
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,
2025.
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
advised
by
independent
legal
counsel
throughout
the
deliberative
process.
Glossary
of
Terms
Used
in
this
Report
31
Glossary
of
Terms
Used
in
this
Report
Currency
Abbreviation
USD
United
States
Dollar
Portfolio
Abbreviation
GO
General
Obligation
Bonds
LOC
Letter
of
Credit
RB
Revenue
Bonds
SOFR
Secured
Overnight
Financing
Rate
VRDN
Variable
Rate
Demand
Notes
Want
to
know
more?
blackrock.com
|
800-441-7762
This
report
is
intended
for
current
holders.
It
is
not
authorized
for
use
as
an
offer
of
sale
or
a
solicitation
of
an
offer
to
buy
shares
of
the
Fund
unless
preceded
or
accompanied
by
the
Fund's
current
prospectus.
Past
performance
results
shown
in
this
report
should
not
be
considered
a
representation
of
future
performance.
Investment
returns
and
principal
value
of
shares
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Statements
and
other
information
herein
are
as
dated
and
are
subject
to
change.
Item 8 - Changes in and Disagreements with Accountants for Open-End Management Investment Companies -See Item 7
Item 9 - Proxy Disclosures for Open-End Management Investment Companies - See Item 7
Item 10 - Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies - See Item 7
Item 11 - Statement Regarding Basis for Approval of Investment Advisory Contract- See Item 7
Item 12 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies - Not Applicable
Item 13 - Portfolio Managers of Closed-End Management Investment Companies - Not Applicable
Item 14 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers - Not Applicable
Item 15 - Submission of Matters to a Vote of Security Holders - There have been no material changes to these procedures.
Item 16 - 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 date of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) or 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 17 - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies -Not Applicable
Item 18 - Recovery of Erroneously Awarded Compensation - Not Applicable
Item 19 - Exhibits attached hereto
(a)(1) Code of Ethics - See Item 2
(a)(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the Registrant's securities are listed - Not Applicable
(a)(3) Section 302 Certifications are attached
«section302»
(a)(4) Any written solicitation to purchase securities under Rule 23c-1 - Not Applicable
(a)(5) Change in Registrant's independent public accountant - Not Applicable
(b) Section 906 Certifications are attached
«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 FundsSM
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock FundsSM
Date: September 23, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock FundsSM
Date: September 23, 2024
By: /s/ Trent Walker
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock FundsSM
Date: September 23, 2024