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BLACKROCK FUNDS (0000844779) (Filer)

SEC · EDGAR 财务披露 · October 5, 2026 at 1:12 PM ET

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: 07/31/2026

Date of reporting period: 07/31/2026

Item 1 – Report to Stockholders


(a) The Report to Shareholders is attached herewith.

BlackRock Short Obligations Fund

Image

Institutional Shares | BISOX

Annual Shareholder Report — July 31, 2026

This annual shareholder report contains important information about BlackRock Short Obligations Fund (the “Fund”) for the period of August 1, 2025 to July 31, 2026. 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)

Table Summary

Class name

Costs of a $10,000 investment

Costs paid as a percentage of a $10,000 investment

Institutional Shares

$30

0.29%

How did the Fund perform last year?

  • For the reporting period ended July 31, 2026, the Fund's Institutional Shares returned 3.94%.

  • For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index, returned 2.71% and the ICE BofA 6-Month U.S. Treasury Bill Index, returned 3.89%.

What contributed to performance?

Asset allocation—namely, positions in U.S. Treasuries, commercial paper, and investment-grade corporate bonds—was the primary contributor to the Fund’s absolute performance. The Fund's cash position had no material impact on performance. 

What detracted from performance?

At a time of positive returns for the broader fixed-income market, 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, 2016 through July 31, 2026

Initial Investment of $10,000 

Growth of 10K Chart

Table Summary

Institutional Shares

Bloomberg U.S. Aggregate Bond Index

ICE BofA 6-Month U.S. Treasury Bill Index

Aug 16

$10,009

$9,989

$10,001

Sep 16

$10,017

$9,983

$10,010

Oct 16

$10,026

$9,906

$10,016

Nov 16

$10,035

$9,672

$10,018

Dec 16

$10,048

$9,686

$10,023

Jan 17

$10,057

$9,705

$10,030

Feb 17

$10,077

$9,770

$10,036

Mar 17

$10,078

$9,765

$10,035

Apr 17

$10,088

$9,840

$10,043

May 17

$10,109

$9,916

$10,049

Jun 17

$10,119

$9,906

$10,059

Jul 17

$10,130

$9,949

$10,069

Aug 17

$10,141

$10,038

$10,083

Sep 17

$10,152

$9,990

$10,090

Oct 17

$10,154

$9,996

$10,100

Nov 17

$10,165

$9,983

$10,107

Dec 17

$10,171

$10,029

$10,118

Jan 18

$10,174

$9,913

$10,129

Feb 18

$10,187

$9,819

$10,136

Mar 18

$10,192

$9,882

$10,150

Apr 18

$10,208

$9,809

$10,165

May 18

$10,237

$9,879

$10,182

Jun 18

$10,246

$9,867

$10,199

Jul 18

$10,265

$9,869

$10,216

Aug 18

$10,296

$9,932

$10,235

Sep 18

$10,316

$9,868

$10,250

Oct 18

$10,327

$9,790

$10,269

Nov 18

$10,349

$9,849

$10,290

Dec 18

$10,365

$10,030

$10,312

Jan 19

$10,410

$10,136

$10,336

Feb 19

$10,432

$10,131

$10,355

Mar 19

$10,467

$10,325

$10,380

Apr 19

$10,480

$10,328

$10,402

May 19

$10,514

$10,511

$10,427

Jun 19

$10,547

$10,643

$10,455

Jul 19

$10,570

$10,666

$10,475

Aug 19

$10,601

$10,943

$10,503

Sep 19

$10,621

$10,885

$10,521

Oct 19

$10,641

$10,917

$10,548

Nov 19

$10,659

$10,912

$10,560

Dec 19

$10,677

$10,904

$10,577

Jan 20

$10,705

$11,114

$10,593

Feb 20

$10,721

$11,314

$10,621

Mar 20

$10,630

$11,247

$10,676

Apr 20

$10,729

$11,447

$10,676

May 20

$10,772

$11,501

$10,674

Jun 20

$10,792

$11,573

$10,676

Jul 20

$10,810

$11,746

$10,680

Aug 20

$10,817

$11,651

$10,681

Sep 20

$10,811

$11,645

$10,683

Oct 20

$10,816

$11,593

$10,684

Nov 20

$10,821

$11,707

$10,686

Dec 20

$10,824

$11,723

$10,688

Jan 21

$10,828

$11,639

$10,689

Feb 21

$10,830

$11,471

$10,691

Mar 21

$10,822

$11,327

$10,693

Apr 21

$10,825

$11,417

$10,694

May 21

$10,838

$11,454

$10,694

Jun 21

$10,830

$11,535

$10,694

Jul 21

$10,832

$11,664

$10,695

Aug 21

$10,835

$11,641

$10,696

Sep 21

$10,837

$11,541

$10,697

Oct 21

$10,829

$11,537

$10,697

Nov 21

$10,820

$11,572

$10,697

Dec 21

$10,823

$11,542

$10,698

Jan 22

$10,804

$11,293

$10,693

Feb 22

$10,795

$11,167

$10,691

Mar 22

$10,756

$10,857

$10,686

Apr 22

$10,749

$10,445

$10,689

May 22

$10,766

$10,512

$10,702

Jun 22

$10,743

$10,347

$10,694

Jul 22

$10,777

$10,600

$10,704

Aug 22

$10,793

$10,301

$10,718

Sep 22

$10,779

$9,856

$10,735

Oct 22

$10,802

$9,728

$10,753

Nov 22

$10,849

$10,086

$10,792

Dec 22

$10,891

$10,040

$10,838

Jan 23

$10,957

$10,349

$10,874

Feb 23

$10,978

$10,082

$10,906

Mar 23

$11,014

$10,338

$10,964

Apr 23

$11,072

$10,400

$11,001

May 23

$11,111

$10,287

$11,028

Jun 23

$11,139

$10,250

$11,081

Jul 23

$11,204

$10,243

$11,127

Aug 23

$11,258

$10,178

$11,177

Sep 23

$11,291

$9,919

$11,227

Oct 23

$11,349

$9,763

$11,278

Nov 23

$11,418

$10,205

$11,336

Dec 23

$11,490

$10,595

$11,395

Jan 24

$11,539

$10,566

$11,445

Feb 24

$11,574

$10,417

$11,485

Mar 24

$11,623

$10,513

$11,536

Apr 24

$11,671

$10,248

$11,582

May 24

$11,721

$10,421

$11,637

Jun 24

$11,781

$10,520

$11,686

Jul 24

$11,854

$10,766

$11,748

Aug 24

$11,915

$10,920

$11,810

Sep 24

$11,975

$11,067

$11,871

Oct 24

$12,011

$10,792

$11,909

Nov 24

$12,045

$10,906

$11,953

Dec 24

$12,092

$10,728

$12,005

Jan 25

$12,150

$10,785

$12,047

Feb 25

$12,192

$11,022

$12,086

Mar 25

$12,238

$11,026

$12,127

Apr 25

$12,283

$11,070

$12,169

May 25

$12,329

$10,990

$12,206

Jun 25

$12,373

$11,159

$12,249

Jul 25

$12,420

$11,130

$12,289

Aug 25

$12,478

$11,263

$12,346

Sep 25

$12,523

$11,386

$12,390

Oct 25

$12,568

$11,457

$12,433

Nov 25

$12,611

$11,528

$12,471

Dec 25

$12,655

$11,511

$12,518

Jan 26

$12,698

$11,523

$12,553

Feb 26

$12,737

$11,712

$12,587

Mar 26

$12,754

$11,506

$12,620

Apr 26

$12,795

$11,519

$12,656

May 26

$12,838

$11,554

$12,691

Jun 26

$12,866

$11,582

$12,722

Jul 26

$12,909

$11,431

$12,767

See “Average annual total returns” for additional information on fund performance.

Average annual total returns

Table Summary

Average Annual Total Returns

1 Year

5 Years

10 Years

Institutional Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

3.94%

3.57%

2.59%

Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

2.71

(0.40)

1.35

ICE BofA 6-Month U.S. Treasury Bill Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

3.89

3.61

2.47

Key Fund statistics

Table Summary

Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

$961,614,365

Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

228

Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

$1,239,508

Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

52%

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.com for more recent performance information.    

What did the Fund invest in?

(as of July 31, 2026) 

Portfolio composition

Maturity allocation

Table Summary

Asset Type

Percent of Net Assets

Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

44.2%

Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

8.2

U.S. Treasury Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

2.3

Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.6

Municipal Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.5

Short-Term Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

44.1

Other Assets Less Liabilities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.1

Table Summary

Percent of Net Assets

1-7 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

5.6%

8-14 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

5.9

15-30 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

4.0

31-60 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

7.7

61-90 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

4.2

91-120 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

9.4

121-150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.8

>150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

62.4

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.

©2026 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. 

Image

BlackRock Short Obligations Fund

Institutional Shares | BISOX

Annual Shareholder Report — July 31, 2026

BISOX-07/26-AR

BlackRock Short Obligations Fund

Image

Investor A Shares | BASOX

Annual Shareholder Report — July 31, 2026

This annual shareholder report contains important information about BlackRock Short Obligations Fund (the “Fund”) for the period of August 1, 2025 to July 31, 2026. 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)

Table Summary

Class name

Costs of a $10,000 investment

Costs paid as a percentage of a $10,000 investment

Investor A Shares

$51

0.50%

How did the Fund perform last year?

  • For the reporting period ended July 31, 2026, the Fund's Investor A Shares returned 3.63%.

  • For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index, returned 2.71% and the ICE BofA 6-Month U.S. Treasury Bill Index, returned 3.89%.

What contributed to performance?

Asset allocation—namely, positions in U.S. Treasuries, commercial paper, and investment-grade corporate bonds—was the primary contributor to the Fund’s absolute performance. The Fund's cash position had no material impact on performance. 

What detracted from performance?

At a time of positive returns for the broader fixed-income market, 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, 2016 through July 31, 2026

Initial Investment of $10,000 

Growth of 10K Chart

Table Summary

Investor A Shares

Bloomberg U.S. Aggregate Bond Index

ICE BofA 6-Month U.S. Treasury Bill Index

Aug 16

$10,006

$9,989

$10,001

Sep 16

$10,012

$9,983

$10,010

Oct 16

$10,028

$9,906

$10,016

Nov 16

$10,035

$9,672

$10,018

Dec 16

$10,035

$9,686

$10,023

Jan 17

$10,042

$9,705

$10,030

Feb 17

$10,059

$9,770

$10,036

Mar 17

$10,067

$9,765

$10,035

Apr 17

$10,075

$9,840

$10,043

May 17

$10,083

$9,916

$10,049

Jun 17

$10,091

$9,906

$10,059

Jul 17

$10,100

$9,949

$10,069

Aug 17

$10,109

$10,038

$10,083

Sep 17

$10,118

$9,990

$10,090

Oct 17

$10,127

$9,996

$10,100

Nov 17

$10,137

$9,983

$10,107

Dec 17

$10,140

$10,029

$10,118

Jan 18

$10,141

$9,913

$10,129

Feb 18

$10,142

$9,819

$10,136

Mar 18

$10,155

$9,882

$10,150

Apr 18

$10,169

$9,809

$10,165

May 18

$10,186

$9,879

$10,182

Jun 18

$10,202

$9,867

$10,199

Jul 18

$10,220

$9,869

$10,216

Aug 18

$10,238

$9,932

$10,235

Sep 18

$10,256

$9,868

$10,250

Oct 18

$10,275

$9,790

$10,269

Nov 18

$10,284

$9,849

$10,290

Dec 18

$10,308

$10,030

$10,312

Jan 19

$10,341

$10,136

$10,336

Feb 19

$10,362

$10,131

$10,355

Mar 19

$10,395

$10,325

$10,380

Apr 19

$10,416

$10,328

$10,402

May 19

$10,448

$10,511

$10,427

Jun 19

$10,479

$10,643

$10,455

Jul 19

$10,489

$10,666

$10,475

Aug 19

$10,519

$10,943

$10,503

Sep 19

$10,537

$10,885

$10,521

Oct 19

$10,565

$10,917

$10,548

Nov 19

$10,571

$10,912

$10,560

Dec 19

$10,587

$10,904

$10,577

Jan 20

$10,614

$11,114

$10,593

Feb 20

$10,639

$11,314

$10,621

Mar 20

$10,546

$11,247

$10,676

Apr 20

$10,643

$11,447

$10,676

May 20

$10,684

$11,501

$10,674

Jun 20

$10,702

$11,573

$10,676

Jul 20

$10,707

$11,746

$10,680

Aug 20

$10,711

$11,651

$10,681

Sep 20

$10,714

$11,645

$10,683

Oct 20

$10,717

$11,593

$10,684

Nov 20

$10,708

$11,707

$10,686

Dec 20

$10,710

$11,723

$10,688

Jan 21

$10,711

$11,639

$10,689

Feb 21

$10,712

$11,471

$10,691

Mar 21

$10,712

$11,327

$10,693

Apr 21

$10,713

$11,417

$10,694

May 21

$10,714

$11,454

$10,694

Jun 21

$10,714

$11,535

$10,694

Jul 21

$10,714

$11,664

$10,695

Aug 21

$10,714

$11,641

$10,696

Sep 21

$10,704

$11,541

$10,697

Oct 21

$10,693

$11,537

$10,697

Nov 21

$10,693

$11,572

$10,697

Dec 21

$10,683

$11,542

$10,698

Jan 22

$10,673

$11,293

$10,693

Feb 22

$10,652

$11,167

$10,691

Mar 22

$10,621

$10,857

$10,686

Apr 22

$10,613

$10,445

$10,689

May 22

$10,628

$10,512

$10,702

Jun 22

$10,603

$10,347

$10,694

Jul 22

$10,623

$10,600

$10,704

Aug 22

$10,637

$10,301

$10,718

Sep 22

$10,632

$9,856

$10,735

Oct 22

$10,642

$9,728

$10,753

Nov 22

$10,687

$10,086

$10,792

Dec 22

$10,737

$10,040

$10,838

Jan 23

$10,789

$10,349

$10,874

Feb 23

$10,808

$10,082

$10,906

Mar 23

$10,852

$10,338

$10,964

Apr 23

$10,896

$10,400

$11,001

May 23

$10,933

$10,287

$11,028

Jun 23

$10,969

$10,250

$11,081

Jul 23

$11,019

$10,243

$11,127

Aug 23

$11,071

$10,178

$11,177

Sep 23

$11,112

$9,919

$11,227

Oct 23

$11,156

$9,763

$11,278

Nov 23

$11,221

$10,205

$11,336

Dec 23

$11,290

$10,595

$11,395

Jan 24

$11,348

$10,566

$11,445

Feb 24

$11,380

$10,417

$11,485

Mar 24

$11,426

$10,513

$11,536

Apr 24

$11,460

$10,248

$11,582

May 24

$11,518

$10,421

$11,637

Jun 24

$11,563

$10,520

$11,686

Jul 24

$11,632

$10,766

$11,748

Aug 24

$11,690

$10,920

$11,810

Sep 24

$11,747

$11,067

$11,871

Oct 24

$11,780

$10,792

$11,909

Nov 24

$11,823

$10,906

$11,953

Dec 24

$11,867

$10,728

$12,005

Jan 25

$11,910

$10,785

$12,047

Feb 25

$11,949

$11,022

$12,086

Mar 25

$12,004

$11,026

$12,127

Apr 25

$12,034

$11,070

$12,169

May 25

$12,077

$10,990

$12,206

Jun 25

$12,130

$11,159

$12,249

Jul 25

$12,174

$11,130

$12,289

Aug 25

$12,217

$11,263

$12,346

Sep 25

$12,270

$11,386

$12,390

Oct 25

$12,301

$11,457

$12,433

Nov 25

$12,341

$11,528

$12,471

Dec 25

$12,381

$11,511

$12,518

Jan 26

$12,421

$11,523

$12,553

Feb 26

$12,457

$11,712

$12,587

Mar 26

$12,471

$11,506

$12,620

Apr 26

$12,510

$11,519

$12,656

May 26

$12,549

$11,554

$12,691

Jun 26

$12,588

$11,582

$12,722

Jul 26

$12,615

$11,431

$12,767

See “Average annual total returns” for additional information on fund performance.

Average annual total returns

Table Summary

Average Annual Total Returns

1 Year

5 Years

10 Years

Investor A Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

3.63%

3.32%

2.35%

Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

2.71

(0.40)

1.35

ICE BofA 6-Month U.S. Treasury Bill Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

3.89

3.61

2.47

Key Fund statistics

Table Summary

Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

$961,614,365

Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

228

Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

$1,239,508

Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

52%

Average annual total returns reflect reductions for service fees.

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.com for more recent performance information.    

What did the Fund invest in?

(as of July 31, 2026) 

Portfolio composition

Maturity allocation

Table Summary

Asset Type

Percent of Net Assets

Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

44.2%

Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

8.2

U.S. Treasury Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

2.3

Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.6

Municipal Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.5

Short-Term Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

44.1

Other Assets Less Liabilities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.1

Table Summary

Percent of Net Assets

1-7 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

5.6%

8-14 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

5.9

15-30 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

4.0

31-60 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

7.7

61-90 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

4.2

91-120 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

9.4

121-150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.8

>150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

62.4

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.

©2026 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. 

Image

BlackRock Short Obligations Fund

Investor A Shares | BASOX

Annual Shareholder Report — July 31, 2026

BASOX-07/26-AR

BlackRock Short Obligations Fund

Image

Class K Shares | BBSOX

Annual Shareholder Report — July 31, 2026

This annual shareholder report contains important information about BlackRock Short Obligations Fund (the “Fund”) for the period of August 1, 2025 to July 31, 2026. 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)

Table Summary

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?

  • For the reporting period ended July 31, 2026, the Fund's Class K Shares returned 4.14%.

  • For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index, returned 2.71% and the ICE BofA 6-Month U.S. Treasury Bill Index, returned 3.89%.

What contributed to performance?

Asset allocation—namely, positions in U.S. Treasuries, commercial paper, and investment-grade corporate bonds—was the primary contributor to the Fund’s absolute performance. The Fund's cash position had no material impact on performance. 

What detracted from performance?

At a time of positive returns for the broader fixed-income market, 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, 2016 through July 31, 2026

Initial Investment of $10,000 

Growth of 10K Chart

Table Summary

Class K Shares

Bloomberg U.S. Aggregate Bond Index

ICE BofA 6-Month U.S. Treasury Bill Index

Aug 16

$10,009

$9,989

$10,001

Sep 16

$10,018

$9,983

$10,010

Oct 16

$10,037

$9,906

$10,016

Nov 16

$10,047

$9,672

$10,018

Dec 16

$10,050

$9,686

$10,023

Jan 17

$10,059

$9,705

$10,030

Feb 17

$10,079

$9,770

$10,036

Mar 17

$10,090

$9,765

$10,035

Apr 17

$10,101

$9,840

$10,043

May 17

$10,112

$9,916

$10,049

Jun 17

$10,124

$9,906

$10,059

Jul 17

$10,135

$9,949

$10,069

Aug 17

$10,147

$10,038

$10,083

Sep 17

$10,159

$9,990

$10,090

Oct 17

$10,172

$9,996

$10,100

Nov 17

$10,184

$9,983

$10,107

Dec 17

$10,191

$10,029

$10,118

Jan 18

$10,195

$9,913

$10,129

Feb 18

$10,199

$9,819

$10,136

Mar 18

$10,215

$9,882

$10,150

Apr 18

$10,231

$9,809

$10,165

May 18

$10,260

$9,879

$10,182

Jun 18

$10,269

$9,867

$10,199

Jul 18

$10,290

$9,869

$10,216

Aug 18

$10,321

$9,932

$10,235

Sep 18

$10,341

$9,868

$10,250

Oct 18

$10,352

$9,790

$10,269

Nov 18

$10,375

$9,849

$10,290

Dec 18

$10,391

$10,030

$10,312

Jan 19

$10,437

$10,136

$10,336

Feb 19

$10,460

$10,131

$10,355

Mar 19

$10,485

$10,325

$10,380

Apr 19

$10,509

$10,328

$10,402

May 19

$10,544

$10,511

$10,427

Jun 19

$10,577

$10,643

$10,455

Jul 19

$10,600

$10,666

$10,475

Aug 19

$10,623

$10,943

$10,503

Sep 19

$10,644

$10,885

$10,521

Oct 19

$10,675

$10,917

$10,548

Nov 19

$10,683

$10,912

$10,560

Dec 19

$10,702

$10,904

$10,577

Jan 20

$10,731

$11,114

$10,593

Feb 20

$10,759

$11,314

$10,621

Mar 20

$10,668

$11,247

$10,676

Apr 20

$10,769

$11,447

$10,676

May 20

$10,813

$11,501

$10,674

Jun 20

$10,833

$11,573

$10,676

Jul 20

$10,842

$11,746

$10,680

Aug 20

$10,848

$11,651

$10,681

Sep 20

$10,854

$11,645

$10,683

Oct 20

$10,859

$11,593

$10,684

Nov 20

$10,864

$11,707

$10,686

Dec 20

$10,868

$11,723

$10,688

Jan 21

$10,872

$11,639

$10,689

Feb 21

$10,865

$11,471

$10,691

Mar 21

$10,868

$11,327

$10,693

Apr 21

$10,871

$11,417

$10,694

May 21

$10,875

$11,454

$10,694

Jun 21

$10,878

$11,535

$10,694

Jul 21

$10,881

$11,664

$10,695

Aug 21

$10,884

$11,641

$10,696

Sep 21

$10,876

$11,541

$10,697

Oct 21

$10,878

$11,537

$10,697

Nov 21

$10,870

$11,572

$10,697

Dec 21

$10,863

$11,542

$10,698

Jan 22

$10,855

$11,293

$10,693

Feb 22

$10,837

$11,167

$10,691

Mar 22

$10,808

$10,857

$10,686

Apr 22

$10,802

$10,445

$10,689

May 22

$10,820

$10,512

$10,702

Jun 22

$10,797

$10,347

$10,694

Jul 22

$10,821

$10,600

$10,704

Aug 22

$10,838

$10,301

$10,718

Sep 22

$10,835

$9,856

$10,735

Oct 22

$10,848

$9,728

$10,753

Nov 22

$10,896

$10,086

$10,792

Dec 22

$10,950

$10,040

$10,838

Jan 23

$11,006

$10,349

$10,874

Feb 23

$11,028

$10,082

$10,906

Mar 23

$11,076

$10,338

$10,964

Apr 23

$11,124

$10,400

$11,001

May 23

$11,164

$10,287

$11,028

Jun 23

$11,204

$10,250

$11,081

Jul 23

$11,258

$10,243

$11,127

Aug 23

$11,313

$10,178

$11,177

Sep 23

$11,358

$9,919

$11,227

Oct 23

$11,405

$9,763

$11,278

Nov 23

$11,475

$10,205

$11,336

Dec 23

$11,548

$10,595

$11,395

Jan 24

$11,599

$10,566

$11,445

Feb 24

$11,635

$10,417

$11,485

Mar 24

$11,685

$10,513

$11,536

Apr 24

$11,734

$10,248

$11,582

May 24

$11,796

$10,421

$11,637

Jun 24

$11,845

$10,520

$11,686

Jul 24

$11,919

$10,766

$11,748

Aug 24

$11,982

$10,920

$11,810

Sep 24

$12,043

$11,067

$11,871

Oct 24

$12,080

$10,792

$11,909

Nov 24

$12,127

$10,906

$11,953

Dec 24

$12,163

$10,728

$12,005

Jan 25

$12,222

$10,785

$12,047

Feb 25

$12,265

$11,022

$12,086

Mar 25

$12,312

$11,026

$12,127

Apr 25

$12,358

$11,070

$12,169

May 25

$12,406

$10,990

$12,206

Jun 25

$12,464

$11,159

$12,249

Jul 25

$12,486

$11,130

$12,289

Aug 25

$12,559

$11,263

$12,346

Sep 25

$12,604

$11,386

$12,390

Oct 25

$12,651

$11,457

$12,433

Nov 25

$12,696

$11,528

$12,471

Dec 25

$12,741

$11,511

$12,518

Jan 26

$12,785

$11,523

$12,553

Feb 26

$12,824

$11,712

$12,587

Mar 26

$12,843

$11,506

$12,620

Apr 26

$12,885

$11,519

$12,656

May 26

$12,930

$11,554

$12,691

Jun 26

$12,959

$11,582

$12,722

Jul 26

$13,004

$11,431

$12,767

See “Average annual total returns” for additional information on fund performance.

Average annual total returns

Table Summary

Average Annual Total Returns

1 Year

5 Years

10 Years

Class K Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

4.14%

3.63%

2.66%

Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

2.71

(0.40)

1.35

ICE BofA 6-Month U.S. Treasury Bill Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

3.89

3.61

2.47

Key Fund statistics

Table Summary

Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

$961,614,365

Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

228

Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

$1,239,508

Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

52%

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.com for more recent performance information.    

What did the Fund invest in?

(as of July 31, 2026) 

Portfolio composition

Maturity allocation

Table Summary

Asset Type

Percent of Net Assets

Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

44.2%

Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

8.2

U.S. Treasury Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

2.3

Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.6

Municipal Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.5

Short-Term Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

44.1

Other Assets Less Liabilities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.1

Table Summary

Percent of Net Assets

1-7 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

5.6%

8-14 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

5.9

15-30 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

4.0

31-60 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

7.7

61-90 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

4.2

91-120 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

9.4

121-150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

0.8

>150 days........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

62.4

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.

©2026 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. 

Image

BlackRock Short Obligations Fund

Class K Shares | BBSOX

Annual Shareholder Report — July 31, 2026

BBSOX-07/26-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 trustees (the “board of trustees”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Neil A. Cotty
Henry R. Keizer

Kenneth L. Urish

Claire A. Walton

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 trustees 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 trustees.

Item 4 – Principal Accountant Fees and Services –

The following table presents fees billed by PricewaterhouseCoopers (“PwC”)  in each of the last two fiscal years for the services rendered to the Fund:

(a) Audit Fees

(b) Audit-Related Fees1

(c) Tax Fees2

(d) All Other Fees

Entity Name

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

Current Fiscal Year End

Previous Fiscal Year End

BlackRock Short Obligations Fund

$24,442

$24,442

$0

$0

$0

$12,000

$0

$0

The following table presents fees billed by PwC that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

Current Fiscal Year End

Previous Fiscal Year End

(b) Audit-Related Fees1

$0

$0

(c) Tax Fees2

$0

$0

(d) All Other Fees3

$0

$0

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

2 The 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.

3 Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by PwC with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.

               (e)(1) Audit Committee Pre-Approval Policies and Procedures:

          The Committee has adopted policies and procedures with regard to the pre-approval of services.  Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee.  The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant.  Certain of these non-audit services that the Committee believes are (a) consistent with the Securities and Exchange Commission’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”).  The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period.  Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project.  For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

                        Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services).  The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting.  At this meeting, an analysis of such services is presented to the Committee for ratification.  The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

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


(f) Not Applicable


(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

Entity Name

Current Fiscal Year End

Previous Fiscal Year End

BlackRock Short Obligations Fund

$0

$12,000

              (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 Statements 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

(a) The registrant’s Financial Statements are attached herewith.

(b) The registrant’s Financial Highlights are attached herewith.

July

31,

2026

Not

FDIC

Insured

-

May

Lose

Value

-

No

Bank

Guarantee

2026

Annual

Financial

Statements

and

Additional

Information

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

these

Financial

Statements

................................................................................

31

Schedule

of

Investments

July

31,

2026

BlackRock

Short

Obligations

Fund

Schedule

of

Investments

3

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

BMW

Vehicle

Lease

Trust

Series

2025-2,

Class

A2A,

3.94%,

11/26/27

USD

2,098

$

2,096,880

Series

2025-2,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.31%),

3.93%,

11/26/27

(a)

....................

1,539

1,539,353

Series

2026-1,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.37%),

3.99%,

07/25/28

(a)

....................

3,580

3,580,539

CNH

Equipment

Trust,

Series

2026-A,

Class

A2A,

3.82%,

06/15/29

..............

4,932

4,919,022

Ford

Credit

Auto

Lease

Trust,

Series

2026-A,

Class

A2A,

3.83%,

08/15/28

..........

1,845

1,841,560

Ford

Credit

Auto

Owner

Trust

Series

2025-B,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.30%),

3.93%,

06/15/28

(a)

....................

1,744

1,743,601

Series

2025-C,

Class

A2A,

3.99%,

09/15/28

1,696

1,694,596

Series

2025-C,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.36%),

3.99%,

09/15/28

(a)

....................

1,612

1,612,404

Honda

Auto

Receivables

Owner

Trust

Series

2025-4,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.38%),

4.01%,

06/15/28

(a)

....................

2,886

2,886,715

Series

2026-1,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.34%),

3.96%,

09/21/28

(a)

....................

7,598

7,600,650

Series

2026-2,

Class

A2A,

4.11%,

12/15/28

3,696

3,691,380

Hyundai

Auto

Lease

Securitization

Trust

(b)

Series

2026-A,

Class

A2A,

3.85%,

05/15/28

3,952

3,941,691

Series

2026-A,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.36%),

3.99%,

05/15/28

(a)

....................

1,848

1,847,983

Series

2026-B,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.40%),

4.03%,

09/15/28

(a)

....................

4,456

4,458,671

Hyundai

Auto

Receivables

Trust

(a)

Series

2025-C,

Class

A2B,

(30-day

Average

SOFR

+

0.35%),

3.98%,

07/17/28

....

1,756

1,756,200

Series

2025-D,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.38%),

4.01%,

11/15/28

.....................

6,273

6,275,564

Series

2026-A,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.34%),

3.97%,

02/15/29

.....................

7,564

7,565,402

Nissan

Auto

Receivables

Owner

Trust

Series

2025-B,

Class

A2A,

4.00%,

07/17/28

2,057

2,055,562

Series

2025-B,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.38%),

4.01%,

07/17/28

(a)

....................

1,299

1,299,493

Porsche

Innovative

Lease

Owner

Trust,

Series

2026-1A,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.35%),

3.97%,

10/20/28

(a)

1,170

1,170,169

Toyota

Auto

Receivables

Owner

Trust

Series

2025-D,

Class

A2A,

3.89%,

08/15/28

1,523

1,521,181

Series

2025-D,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.32%),

3.95%,

08/15/28

(a)

....................

1,080

1,080,436

Series

2026-A,

Class

A2A,

3.80%,

12/15/28

3,470

3,463,712

Series

2026-A,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.33%),

3.96%,

12/15/28

(a)

....................

1,102

1,102,504

Series

2026-B,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.38%),

4.01%,

02/15/29

(a)

....................

4,360

4,361,159

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Toyota

Lease

Owner

Trust,

Series

2025-B,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.34%),

3.96%,

05/22/28

(a)

(b)

..........

USD

992

$

992,193

USAA

Auto

Owner

Trust,

Series

2025-A,

Class

A2,

3.98%,

03/15/28

(b)

..............

956

956,082

Volkswagen

Auto

Lease

Trust,

Series

2025-B,

Class

A2B,

(30-day

Average

SOFR

at

0.00%

Floor

+

0.37%),

3.99%,

04/20/28

(a)

......

1,722

1,722,923

Total

Asset-Backed

Securities

—

8

.2

%

(Cost:

$

78,806,742

)

...............................

78,777,625

Corporate

Bonds

Aerospace

&

Defense

—

0.2%

General

Dynamics

Corp.,

3.50%,

04/01/27

..

1,970

1,960,807

Automobiles

—

2.0%

(b)

BMW

US

Capital

LLC

(SOFR

Index

+

0.80%),

4.48%

,

08/13/26

(a)

2,770

2,770,333

4.65%

,

08/13/26

..................

1,175

1,175,216

Hyundai

Capital

America

5.25%

,

01/08/27

..................

2,625

2,633,588

4.85%

,

03/25/27

..................

3,030

3,036,107

(1-day

SOFR

at

0.00%

Floor

+

1.12%),

4.77%

,

06/23/27

(a)

...............

2,835

2,849,772

(1-day

SOFR

at

0.00%

Floor

+

1.03%),

4.69%

,

09/24/27

(a)

...............

2,965

2,979,685

Volkswagen

Group

of

America

Finance

LLC,

4.45%,

09/11/27

.................

3,280

3,268,447

18,713,148

Banks

—

12.8%

ANZ

New

Zealand

International

Ltd.,

4.00%,

01/22/29

(b)

.....................

900

885,696

Bank

of

America

NA,

(1-day

SOFR

+

0.40%),

4.05%,

07/02/27

(a)

................

6,670

6,671,485

Banque

Federative

du

Credit

Mutuel

SA,

5.09%,

01/23/27

(b)

.....................

3,140

3,151,078

BPCE

SA,

5.20%,

01/18/27

(b)

...........

2,010

2,018,386

Citibank

NA

(a)

(1-day

SOFR

+

0.71%),

4.38%

,

11/19/27

.

8,450

8,458,272

(1-day

SOFR

+

0.50%),

4.18%

,

06/18/28

.

6,550

6,552,763

Commonwealth

Bank

of

Australia

(1-day

SOFR

at

0.00%

Floor

+

0.46%),

4.12%

,

11/27/26

(a)

(b)

..............

2,770

2,771,939

4.42%

,

03/14/28

..................

3,035

3,032,083

Series

C

,

4.36%

,

03/27/29

...........

1,740

1,730,612

Cooperatieve

Rabobank

UA

(1-day

SOFR

+

0.59%),

4.25%

,

05/27/27

(a)

6,210

6,224,346

4.88%

,

01/21/28

..................

5,610

5,644,192

Morgan

Stanley

Bank

NA,

(1-day

SOFR

+

0.69%),

4.34%,

10/15/27

(a)

...........

8,770

8,775,288

Morgan

Stanley

Private

Bank

NA,

(1-day

SOFR

+

0.78%),

4.20%,

11/17/28

(a)

..........

2,305

2,291,224

National

Australia

Bank

Ltd.

(a)(b)

(1-day

SOFR

+

0.50%),

4.16%

,

03/06/28

.

2,805

2,808,608

(1-day

SOFR

+

0.54%),

4.21%

,

06/04/29

.

4,935

4,943,735

National

Securities

Clearing

Corp.,

4.35%,

05/20/27

(b)

.....................

5,715

5,719,991

NatWest

Markets

plc,

4.79%,

03/21/28

(b)

....

4,220

4,230,518

Nordea

Bank

Abp

(b)

5.00%

,

03/19/27

..................

3,150

3,164,853

(1-day

SOFR

+

0.70%),

4.37%

,

03/17/28

(a)

2,210

2,219,751

PNC

Financial

Services

Group,

Inc.

(The),

(1-day

SOFR

+

0.61%),

4.08%,

01/26/29

(a)

.....

4,040

4,001,579

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

Schedule

of

Investments

(continued)

July

31,

2026

BlackRock

Short

Obligations

Fund

4

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

Skandinaviska

Enskilda

Banken

AB,

4.38%,

06/02/28

(b)

.....................

USD

6,205

$

6,189,102

Standard

Chartered

Bank,

(1-Year

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

+

0.65%),

4.72%,

05/28/29

(a)

...........

4,950

4,937,891

Sumitomo

Mitsui

Financial

Group,

Inc.,

4.11%,

01/15/29

......................

6,095

5,997,948

Sumitomo

Mitsui

Trust

Bank

Ltd.

(b)

4.45%

,

09/10/27

..................

2,770

2,766,490

(1-day

SOFR

+

0.71%),

4.38%

,

03/05/29

(a)

2,750

2,756,520

Truist

Bank,

Series

I,

(1-day

SOFR

+

0.66%),

4.14%,

01/27/29

(a)

................

2,100

2,081,141

United

Overseas

Bank

Ltd.,

(SOFR

Index

+

0.58%),

4.23%,

04/02/28

(a)

(b)

..........

3,035

3,043,122

Wells

Fargo

&

Co.

(a)

(1-day

SOFR

+

0.78%),

4.43%

,

01/24/28

.

2,980

2,985,345

Series

W

,

(1-day

SOFR

+

0.78%),

4.90%

,

01/24/28

.....................

2,010

2,013,605

Westpac

Banking

Corp.,

(1-day

SOFR

+

0.50%),

4.16%,

03/06/28

(a)

(b)

...............

2,900

2,904,538

Westpac

New

Zealand

Ltd.,

4.13%,

01/29/29

(b)

2,050

2,019,105

122,991,206

Biotechnology

—

0.6%

AbbVie,

Inc.,

(SOFR

Index

+

0.48%),

4.15%,

03/03/28

(a)

.....................

5,385

5,391,277

Broadline

Retail

—

1.0%

Amazon.com,

Inc.

3.85%

,

03/13/28

..................

5,150

5,101,603

(1-day

SOFR

+

0.44%),

4.10%

,

03/13/28

(a)

2,575

2,577,426

3.90%

,

11/20/28

..................

2,010

1,977,871

9,656,900

Capital

Markets

—

3.8%

Bank

of

New

York

Mellon

Corp.

(The),

(SOFR

Index

+

0.68%),

4.34%,

06/09/28

(a)

......

9,240

9,260,319

Macquarie

Bank

Ltd.

(b)

5.39%

,

12/07/26

..................

1,990

1,998,260

3.92%

,

02/03/28

..................

4,285

4,247,361

Morgan

Stanley,

3.63%,

01/20/27

........

9,000

8,977,570

State

Street

Bank

&

Trust

Co.,

(1-day

SOFR

+

0.46%),

4.12%,

11/25/26

(a)

...........

1,135

1,135,715

UBS

AG

(a)

(1-day

SOFR

+

0.50%),

4.17%

,

05/17/27

.

7,760

7,753,920

(1-day

SOFR

+

0.72%),

4.86%

,

01/10/28

.

3,420

3,425,054

36,798,199

Commercial

Services

&

Supplies

—

0.2%

Waste

Management,

Inc.,

4.95%,

07/03/27

..

2,155

2,166,995

Consumer

Finance

—

4.3%

American

Honda

Finance

Corp.

(a)

(SOFR

Index

+

0.72%),

4.37%

,

10/05/26

.

2,000

2,001,205

Series

A

,

(SOFR

Index

at

0.00%

Floor

+

0.93%),

4.59%

,

04/10/28

..........

2,430

2,434,641

Caterpillar

Financial

Services

Corp.

(1-day

SOFR

+

0.38%),

4.03%

,

01/07/27

(a)

2,155

2,155,595

4.50%

,

01/07/27

..................

2,780

2,783,441

3.95%

,

11/14/28

..................

7,500

7,412,529

Hyundai

Capital

Services,

Inc.,

5.25%,

01/22/28

(b)

.....................

5,790

5,822,319

John

Deere

Capital

Corp.

4.50%

,

01/08/27

..................

2,780

2,784,363

4.20%

,

07/15/27

..................

1,165

1,164,956

Toyota

Motor

Credit

Corp.

(a)

(1-day

SOFR

at

0.00%

Floor

+

0.43%),

4.08%

,

06/09/27

................

7,700

7,706,160

Security

Par

(000)

Par

(000)

Value

Consumer

Finance

(continued)

Series

B

,

(SOFR

Index

at

0.00%

Floor

+

0.48%),

4.16%

,

05/12/28

..........

USD

7,280

$

7,283,567

41,548,776

Electric

Utilities

—

0.4%

NextEra

Energy

Capital

Holdings,

Inc.

4.69%

,

09/01/27

..................

1,790

1,792,850

4.85%

,

02/04/28

..................

2,235

2,243,918

4,036,768

Electrical

Equipment

—

0.3%

Eaton

Corp.,

3.85%,

03/06/28

..........

2,550

2,521,893

Electronic

Equipment,

Instruments

&

Components

—

0.7%

Amphenol

Corp.

5.05%

,

04/05/27

..................

2,755

2,767,841

(1-day

SOFR

+

0.53%),

4.21%

,

11/15/27

(a)

3,725

3,730,516

6,498,357

Entertainment

—

0.6%

TWDC

Enterprises

18

Corp.,

2.95%,

06/15/27

6,040

5,974,105

Financial

Services

—

5.5%

Equitable

America

Global

Funding

(b)

3.95%

,

09/15/27

..................

830

822,337

(1-day

SOFR

+

0.71%),

4.37%

,

09/15/27

(a)

3,115

3,119,147

4.30%

,

12/15/28

..................

6,050

5,977,811

JPMorgan

Chase

Bank

NA,

5.11%,

12/08/26

.

3,030

3,037,679

National

Rural

Utilities

Cooperative

Finance

Corp.

(1-day

SOFR

+

0.33%),

3.98%

,

10/30/26

(a)

2,690

2,690,102

(1-day

SOFR

+

0.58%),

4.27%

,

11/22/26

(a)

7,550

7,556,352

Series

D

,

(SOFR

Index

+

0.43%),

4.10%

,

08/09/27

(a)

....................

2,430

2,431,486

4.75%

,

02/07/28

..................

1,350

1,353,371

Nationwide

Building

Society,

1.50%,

10/13/26

(b)

8,900

8,854,582

NTT

Finance

Corp.

(b)

4.57%

,

07/16/27

..................

2,865

2,867,148

4.74%

,

03/31/28

..................

2,400

2,397,954

PayPal

Holdings,

Inc.

(1-day

SOFR

+

0.67%),

4.33%

,

03/06/28

(a)

2,080

2,082,427

4.45%

,

03/06/28

..................

1,305

1,300,292

Siemens

Financieringsmaatschappij

NV,

6.13%,

08/17/26

(b)

.....................

8,750

8,757,151

53,247,839

Food

Products

—

0.4%

Mars,

Inc.,

4.45%,

03/01/27

(b)

..........

3,370

3,376,423

Health

Care

Equipment

&

Supplies

—

0.6%

Stryker

Corp.,

4.55%,

02/10/27

.........

5,935

5,944,201

Hotels,

Restaurants

&

Leisure

—

0.6%

Marriott

International,

Inc.,

4.20%,

07/15/27

..

3,030

3,021,937

Starbucks

Corp.,

4.85%,

02/08/27

........

3,130

3,137,402

6,159,339

Insurance

—

7.2%

(b)

Athene

Global

Funding

(a)

(SOFR

Index

at

0.00%

Floor

+

0.68%),

4.35%

,

08/10/26

................

3,065

3,065,162

(1-day

SOFR

at

0.00%

Floor

+

0.95%),

4.60%

,

04/19/27

................

2,545

2,549,685

(SOFR

Index

at

0.00%

Floor

+

0.95%),

4.61%

,

03/06/28

................

11,065

11,051,183

MassMutual

Global

Funding

II

4.45%

,

03/27/28

..................

5,448

5,441,441

4.00%

,

01/22/29

..................

6,630

6,516,529

Metropolitan

Life

Global

Funding

I,

4.15%,

08/25/28

......................

1,295

1,282,280

Schedule

of

Investments

(continued)

July

31,

2026

BlackRock

Short

Obligations

Fund

Schedule

of

Investments

5

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Par

(000)

Value

Insurance

(continued)

New

York

Life

Global

Funding,

4.20%,

04/20/29

USD

2,405

$

2,373,352

Northwestern

Mutual

Global

Funding

4.49%

,

03/21/28

..................

3,940

3,937,932

4.13%

,

08/25/28

..................

1,425

1,410,522

4.40%

,

03/30/29

..................

5,125

5,086,101

Pacific

Life

Global

Funding

II

(1-day

SOFR

+

0.48%),

4.15%

,

02/04/27

(a)

6,635

6,638,728

(1-day

SOFR

+

0.60%),

4.24%

,

01/27/28

(a)

5,000

5,004,933

4.30%

,

04/27/29

..................

2,405

2,372,636

Principal

Life

Global

Funding

II

4.60%

,

08/19/27

..................

2,910

2,914,862

4.25%

,

08/18/28

..................

1,125

1,113,250

Protective

Life

Global

Funding

4.99%

,

01/12/27

..................

3,150

3,160,280

(1-day

SOFR

at

0.00%

Floor

+

0.85%),

4.52%

,

09/11/28

(a)

...............

5,440

5,452,167

69,371,043

IT

Services

—

0.2%

Accenture

Capital,

Inc.,

3.90%,

10/04/27

....

2,015

2,003,592

Machinery

—

0.8%

Daimler

Truck

Finance

North

America

LLC

(b)

5.00%

,

01/15/27

..................

2,260

2,266,394

4.30%

,

08/12/27

..................

1,620

1,616,339

4.95%

,

01/13/28

..................

1,775

1,781,668

4.15%

,

01/12/29

..................

2,280

2,245,275

7,909,676

Metals

&

Mining

—

0.3%

Rio

Tinto

Finance

USA

plc

4.38%

,

03/12/27

..................

1,040

1,040,920

(SOFR

Index

+

0.84%),

4.50%

,

03/14/28

(a)

1,395

1,403,784

2,444,704

Multi-Utilities

—

0.4%

WEC

Energy

Group,

Inc.,

4.75%,

01/15/28

..

3,575

3,582,800

Pharmaceuticals

—

0.1%

Pfizer,

Inc.,

3.88%,

11/15/27

...........

1,040

1,033,953

Semiconductors

&

Semiconductor

Equipment

—

0.3%

Advanced

Micro

Devices,

Inc.,

4.21%,

09/24/26

3,040

3,038,752

Software

—

0.8%

Salesforce,

Inc.,

4.50%,

03/15/28

........

7,720

7,702,294

Trading

Companies

&

Distributors

—

0.1%

Mitsubishi

Corp.,

4.00%,

09/09/28

(b)

.......

1,035

1,022,363

Total

Corporate

Bonds

—

44

.2

%

(Cost:

$

425,551,037

)

..............................

425,095,410

Foreign

Agency

Obligations

Australia

—

0.6%

NBN

Co.

Ltd.

,

4.00

%

,

10/01/27

(b)

.........

5,925

5,881,688

Total

Foreign

Agency

Obligations

—

0

.6

%

(Cost:

$

5,920,531

)

...............................

5,881,688

Municipal

Bonds

Illinois

—

0.0

%

State

of

Illinois

,

Series

2026A

,

GO

,

4.33

%

,

04/01/27

..................

285

284,850

Security

Par

(000)

Par

(000)

Value

New

York

—

0

.4

%

City

of

New

York

,

Series

2026,

Sub-Series

H-1

,

GO

,

4.19

%

,

02/01/28

...............

USD

615

$

613,391

New

York

City

Transitional

Finance

Authority

Future

Tax

Secured

,

Series

2025J,

Sub-

Series

J-2

,

RB

,

4.51

%

,

11/01/26

........

2,835

2,835,122

3,448,513

Other

—

0

.1

%

Taxable

Municipal

Funding

Trust

,

Series

2020-

11

,

RB

,

VRDN

(

Barclays

Bank

plc

LOC

)

,

3.97

%

,

08/06/26

(b)

(c)

................

720

720,000

Total

Municipal

Bonds

—

0

.5

%

(Cost:

$

4,455,000

)

...............................

4,453,363

U.S.

Treasury

Obligations

U.S.

Treasury

Notes

3.75

%

,

08/31/26

..................

5,815

5,814,091

3.50

%

,

09/30/26

..................

2,930

2,928,228

4.13

%

,

10/31/26

..................

13,355

13,360,113

Total

U.S.

Treasury

Obligations

—

2

.3

%

(Cost:

$

22,090,506

)

...............................

22,102,432

Total

Long-Term

Investments

—

55.8%

(Cost:

$

536,823,816

)

..............................

536,310,518

Short-Term

Securities

Certificates

of

Deposit

—

7.4%

Yankee

—

7.4%

(d)

Banco

Bilbao

Vizcaya

Argentaria,

New

York

3.83

%

,

08/20/26

..................

6,250

6,250,098

4.50

%

,

07/15/27

..................

4,650

4,651,446

Banco

Santander

SA,

New

York

,

4.00

%

,

01/05/27

..................

3,400

3,398,206

Bank

of

Montreal

,

3.80

%

,

11/13/26

........

3,000

2,998,426

Barclays

Bank

plc,

New

York

(1-day

SOFR

+

0.40%),

4.05

%

,

11/19/26

(a)

.

2,500

2,501,651

4.05

%

,

03/12/27

..................

5,000

4,995,385

Canadian

Imperial

Bank

of

Commerce,

New

York

,

3.80

%

,

01/11/27

..............

3,800

3,793,804

Commerzbank

AG

,

3.85

%

,

02/01/27

.......

3,280

3,273,606

Cooperatieve

Rabobank

UA,

New

York

,

3.80

%

,

11/16/26

..................

5,470

5,466,822

National

Bank

of

Kuwait,

New

York

,

4.05

%

,

01/25/27

..................

5,325

5,316,042

Natixis

SA,

New

York

,

4.13

%

,

05/12/27

.....

4,830

4,822,567

Nordea

Bank

Abp,

New

York

,

(1-day

SOFR

+

0.30%),

3.95

%

,

04/22/27

(a)

...........

3,475

3,475,286

Standard

Chartered

Bank,

New

York

,

(1-day

SOFR

+

0.42%),

4.07

%

,

02/05/27

(a)

.....

3,400

3,401,838

Sumitomo

Mitsui

Trust,

New

York

,

4.05

%

,

11/24/26

..................

8,030

8,032,378

Westpac

Banking

Corp.,

New

York

3.89

%

,

08/12/26

..................

3,750

3,750,111

4.00

%

,

03/16/27

..................

5,100

5,091,823

71,219,489

Total

Certificates

of

Deposit

—

7

.4

%

(Cost:

$

71,257,781

)

...............................

71,219,489

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

Schedule

of

Investments

(continued)

July

31,

2026

BlackRock

Short

Obligations

Fund

6

(Percentages

shown

are

based

on

Net

Assets)

Security

Par

(000)

Pa

r

(

000)

Value

Commercial

Paper

—

28.0%

(e)

Alimentation

Couche-Tard,

Inc.

,

4.06

%

,

10/06/26

(b)

......................

USD

2,105

$

2,089,477

American

Honda

Finance

Corp.

(b)

4.07

%

,

08/10/26

..................

1,745

1,743,100

4.07

%

,

08/24/26

..................

6,215

6,198,596

Banco

Santander

SA

,

4.14

%

,

05/04/27

(b)

....

5,000

4,839,701

Bank

of

New

Zealand

,

3.99

%

,

08/12/26

(b)

....

2,000

1,997,554

Bank

of

Nova

Scotia

(The)

,

4.16

%

,

05/20/27

(b)

9,220

8,912,952

Bay

Square

Funding

LLC

,

3.93

%

,

09/02/26

(b)

.

8,790

8,759,527

BPCE

SA

,

4.04

%

,

05/06/27

(b)

............

4,420

4,279,850

Britannia

Funding

Co.

LLC

,

4.19

%

,

01/06/27

(b)

6,650

6,532,047

Bunge

Ltd.

Finance

Corp.

(b)

3.99

%

,

08/12/26

..................

5,550

5,542,649

3.98

%

,

08/18/26

..................

1,985

1,981,027

CDP

Financial,

Inc.

,

4.20

%

,

03/24/27

(b)

.....

3,030

2,948,865

Charles

Schwab

&

Co.,

Inc.

(b)

4.22

%

,

01/05/27

..................

2,630

2,582,960

4.22

%

,

01/26/27

..................

3,800

3,722,734

DNB

Bank

ASA

,

3.72

%

,

10/05/26

(b)

........

3,000

2,979,485

Eaton

Capital

ULC

,

3.99

%

,

08/06/26

(b)

......

2,640

2,638,278

Extra

Space

Storage

LP

(b)

4.03

%

,

08/05/26

..................

9,240

9,234,987

4.07

%

,

08/13/26

..................

3,270

3,265,320

Federation

des

Caisses

Desjardins

du

Quebec

,

3.76

%

,

02/25/27

(b)

.................

8,500

8,300,703

Fidelity

National

Information

Services,

Inc.

(b)

3.97

%

,

08/06/26

..................

3,485

3,482,727

3.98

%

,

08/21/26

..................

5,790

5,776,596

Fidelity

National

Information

Solutions,

Inc.

,

3.96

%

,

08/13/26

(b)

.................

6,700

6,690,465

Glencore

Funding

LLC

,

4.10

%

,

09/01/26

(b)

...

12,060

12,017,320

HSBC

Bank

plc

,

4.19

%

,

04/29/27

(b)

........

6,620

6,408,330

HSBC

USA,

Inc.

,

3.87

%

,

12/23/26

(b)

.......

2,680

2,635,959

Intrepid

Funding

Co.

LLC

,

4.02

%

,

09/17/26

(b)

.

4,495

4,472,273

Lexington

Parker

Capital

Co.

LLC

,

3.93

%

,

08/20/26

(b)

......................

4,660

4,650,186

Lloyds

Bank

Corporate

Markets

plc

,

4.01

%

,

02/08/27

.......................

920

900,138

Macquarie

Bank

Ltd.

,

4.07

%

,

04/23/27

(b)

....

5,600

5,425,606

Security

Par

(000)

Par

(000)

Value

Commercial

Paper

(continued)

Macquarie

Group

Ltd.

,

4.01

%

,

09/01/26

(b)

....

USD

7,020

$

6,995,327

Marubeni

Finance

America

LLC

,

3.82

%

,

08/03/26

(b)

......................

13,000

12,995,684

Mitsubishi

HC

Finance

America

LLC

(b)

4.00

%

,

08/04/26

..................

10,190

10,185,541

4.00

%

,

08/17/26

..................

4,805

4,795,898

National

Bank

of

Canada

(b)

4.09

%

,

05/04/27

..................

10,110

9,788,027

4.30

%

,

06/16/27

..................

2,990

2,878,709

National

Grid

North

America,

Inc.

(b)

4.02

%

,

09/02/26

..................

2,810

2,799,810

4.02

%

,

09/09/26

..................

2,975

2,961,877

NTT

Finance

Americas,

Inc.

,

4.03

%

,

08/12/26

(b)

6,190

6,182,146

Penske

Truck

Leasing

Co.

LP

(b)

4.13

%

,

08/13/26

..................

5,390

5,382,126

4.13

%

,

10/08/26

..................

6,150

6,100,929

4.13

%

,

10/19/26

..................

5,810

5,756,203

PPG

Industries,

Inc.

,

0.00

%

,

09/29/26

(b)

.....

3,910

3,884,194

Pure

Grove

Funding

,

3.98

%

,

09/10/26

(b)

.....

5,320

5,297,053

S&P

Global,

Inc.

,

4.01

%

,

08/12/26

(b)

.......

7,120

7,110,640

Spire,

Inc.

,

4.02

%

,

08/12/26

(b)

...........

2,245

2,242,049

Svenska

Handelsbanken

AB

,

4.27

%

,

04/13/27

(b)

5,950

5,774,880

Tokeneke

Funding

Co.

LLC

,

3.94

%

,

09/10/26

(b)

4,120

4,101,900

Verto

Capital

Compartment

E

,

4.09

%

,

10/13/26

(b)

5,750

5,703,274

Verto

Capital

I

Compartment

A

,

4.19

%

,

01/11/27

(b)

......................

2,890

2,836,162

Verto

Capital

I

Compartment

D

,

4.21

%

,

01/20/27

(b)

......................

8,850

8,675,829

Westpac

Banking

Corp.

,

3.73

%

,

09/08/26

(b)

..

6,000

5,975,487

Total

Commercial

Paper

—

28

.0

%

(Cost:

$

269,545,483

)

..............................

269,433,157

Total

Repurchase

Agreements

—

8

.7

%

(Cost:

$

83,720,000

)

...............................

83,720,000

Total

Short-Term

Securities

—

44.1%

(Cost:

$

424,523,264

)

..............................

424,372,646

Total

Investments

—

99

.9

%

(Cost:

$

961,347,080

)

..............................

960,683,164

Other

Assets

Less

Liabilities

—

0.1

%

....................

931,201

Net

Assets

—

100.0%

...............................

$

961,614,365

(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)

Variable

rate

security.

Rate

as

of

period

end

and

maturity

is

the

date

the

principal

owed

can

be

recovered

through

demand.

(d)

Issuer

is

a

U.S.

branch

of

a

foreign

domiciled

bank.

(e)

Rates

are

the

current

rate

or

a

range

of

current

rates

as

of

period

end.

Schedule

of

Investments

(continued)

July

31,

2026

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,

2026

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

07/31/25

Purchases

at

Cost

Proceeds

from

Sales

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

07/31/26

Shares

Held

at

07/31/26

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

(a)

$

372,041

$

—

$

(

372,041

)

(b)

$

—

$

—

$

—

—

$

11,229

$

—

—

—

(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.

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

Schedule

of

Investments

(continued)

July

31,

2026

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.

...

3

.92

%

(a)

07/31/26

09/07/26

$

4,250

$

4,250,000

$

4,267,586

Corporate/Debt

Obligations,

3.88%

to

6.51%,

due

06/15/39

to

10/25/59

.........

$

5,158,343

$

4,547,502

–

–

Barclays

Capital,

Inc.

.

4

.18

(a)

07/31/26

11/06/26

5,000

5,000,000

5,056,894

Corporate/Debt

Obligations,

5.65%

to

6.51%,

due

01/15/31

to

01/30/59

.........

6,793,000

6,250,469

–

–

BNP

Paribas

SA

....

4

.02

(a)

07/31/26

11/06/26

8,250

8,250,000

8,340,282

Corporate/Debt

Obligation,

13.00%,

due

12/15/30

......

7,430,034

9,487,501

–

–

Citigroup

Global

Markets,

Inc.

...........

3

.98

(a)

07/31/26

11/03/26

6,000

6,000,000

6,063,017

Corporate/Debt

Obligations,

0.38%

to

5.72%,

due

09/18/42

to

06/25/59

.........

286,640,324

6,420,001

–

–

Deutsche

Bank

Securities,

Inc.

...

4

.08

(a)

07/31/26

10/07/26

3,500

3,500,000

3,526,973

Corporate/Debt

Obligations,

0.00%

to

8.25%,

due

06/30/27

to

12/25/66

.........

120,314,199

3,955,186

–

–

Goldman

Sachs

&

Co.

LLC

...........

4

.17

(a)

07/31/26

03/06/27

10,000

10,000,000

10,252,517

U.S.

Government

Sponsored

Agency

Obligations

and

Corporate/Debt

Obligations,

0.00%

to

7.55%,

due

06/16/27

to

11/25/64

.........

16,723,219

10,878,244

–

–

JP

Morgan

Securities

LLC

...........

3

.88

(a)

07/31/26

08/10/26

6,220

6,220,000

6,226,704

Corporate/Debt

Obligation,

2.88%,

due

06/01/29

.........

3,894,000

6,967,502

–

–

Mizuho

Securities

USA

LLC

...........

4

.08

(a)

07/31/26

09/07/26

3,500

3,500,000

3,515,073

Corporate/Debt

Obligation,

2.31%,

due

11/20/51

.........

3,768,083

3,745,000

4

.18

(a)

07/31/26

11/02/26

9,000

9,000,000

9,098,230

Corporate/Debt

Obligation,

12.12%,

due

09/27/32

......

9,481,285

10,350,001

–

–

$

12,500,000

$

14,095,001

–

–

Santander

US

Capital

Markets

LLC

.....

4

.10

(b)

07/31/26

08/03/26

15,500

15,500,000

15,505,296

U.S.

Treasury

Obligations

and

Corporate/Debt

Obligations,

0.00%

to

4.00%,

due

09/15/26

to

05/01/31

.........

17,910,900

16,079,778

–

–

Wells

Fargo

Securities

LLC

...........

4

.07

(a)

07/31/26

11/11/26

12,500

12,500,000

12,645,559

Corporate/Debt

Obligations,

0.67%

to

6.37%,

due

03/15/41

to

05/15/43

.........

76,556,739

13,375,000

–

–

$

83,720,000

$

92,056,184

–

–

(a)

Variable

rate

security.

Rate

as

of

period

end

and

maturity

is

the

date

the

principal

owed

can

be

recovered

through

demand.

(b)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

Schedule

of

Investments

(continued)

July

31,

2026

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

at

the

measurement

date.

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

...................................

$

—

$

78,777,625

$

—

$

78,777,625

Corporate

Bonds

........................................

—

425,095,410

—

425,095,410

Foreign

Agency

Obligations

.................................

—

5,881,688

—

5,881,688

Municipal

Bonds

.........................................

—

4,453,363

—

4,453,363

U.S.

Treasury

Obligations

...................................

—

22,102,432

—

22,102,432

Short-Term

Securities

Certificates

of

Deposit

.....................................

—

71,219,489

—

71,219,489

Commercial

Paper

.......................................

—

269,433,157

—

269,433,157

Repurchase

Agreements

...................................

—

83,720,000

—

83,720,000

$

—

$

960,683,164

$

—

$

960,683,164

Statement

of

Assets

and

Liabilities

July

31,

2026

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

10

See

notes

to

financial

statements.

BlackRock

Short

Obligations

Fund

ASSETS

Investments,

at

value

—

unaffiliated

(a)

........................................................................................

$

876,963,164‌

Cash

.............................................................................................................

356,000‌

Repurchase

agreements,

at

value

(b)

.........................................................................................

83,720,000‌

Receivables:

–‌

Capital

shares

sold

...................................................................................................

2,397,061‌

Interest

—

unaffiliated

.................................................................................................

5,077,489‌

From

the

Manager

...................................................................................................

109,738‌

Prepaid

e

xpenses

.....................................................................................................

64,336‌

Total

a

ssets

.........................................................................................................

968,687,788‌

LIABILITIES

Payables:

–‌

Investments

purchased

................................................................................................

3,885,299‌

Administration

fees

...................................................................................................

44,558‌

Capital

shares

redeemed

...............................................................................................

2,568,037‌

Income

dividend

distributions

............................................................................................

2,650‌

Interest

expense

....................................................................................................

191‌

Investment

advisory

fees

..............................................................................................

75,687‌

Trustees'

and

Officer's

fees

.............................................................................................

604‌

Other

affiliate

fees

...................................................................................................

1,885‌

Professional

fees

....................................................................................................

41,667‌

Service

fees

.......................................................................................................

82,591‌

Other

accrued

expenses

...............................................................................................

370,254‌

Total

li

abilities

........................................................................................................

7,073,423‌

Commitments

and

contingent

liabilities

$

–‌

NET

ASSETS

........................................................................................................

$

961,614,365‌

NET

ASSETS

CONSIST

OF:

Paid-in

capital

........................................................................................................

$

974,007,078‌

Accumulated

loss

.....................................................................................................

(

12,392,713‌

)

NET

ASSETS

........................................................................................................

$

961,614,365‌

(a)

  Investments,

at

cost

—

unaffiliated

.................................................................................

$

877,627,080‌

(b)

  Repurchase

agreements,

at

cost

..................................................................................

$

83,720,000‌

Statement

of

Assets

and

Liabilities

(continued)

July

31,

2026

11

Statement

of

Assets

and

Liabilities

See

notes

to

financial

statements.

BlackRock

Short

Obligations

Fund

NET

ASSET

VALUE

Institutional

Net

assets

.........................................................................................................

$

577,246,944‌

Shares

outstanding

...................................................................................................

57,383,001‌

Net

asset

value

.....................................................................................................

$

10.06‌

Shares

authorized

...................................................................................................

Unlimited

Par

value

.........................................................................................................

$

0.001‌

Investor

A

Net

assets

.........................................................................................................

$

368,237,910‌

Shares

outstanding

...................................................................................................

36,631,554‌

Net

asset

value

.....................................................................................................

$

10.05‌

Shares

authorized

...................................................................................................

Unlimited

Par

value

.........................................................................................................

$

0.001‌

Class

K

Net

assets

.........................................................................................................

$

16,129,511‌

Shares

outstanding

...................................................................................................

1,601,795‌

Net

asset

value

.....................................................................................................

$

10.07‌

Shares

authorized

...................................................................................................

Unlimited

Par

value

.........................................................................................................

$

0.001‌

Statement

of

Operations

Year

Ended

July

31,

2026

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

12

See

notes

to

financial

statements.

BlackRock

Short

Obligations

Fund

INVESTMENT

INCOME

Dividends

—

affiliated

.................................................................................................

$

11,229‌

Interest

—

unaffiliated

.................................................................................................

44,786,359‌

Total

investment

income

.................................................................................................

44,797,588‌

EXPENSES

Investment

advisory

..................................................................................................

2,558,013‌

Service

—

class

specific

...............................................................................................

966,108‌

Transfer

agent

—

class

specific

..........................................................................................

668,856‌

Administration

.....................................................................................................

421,464‌

Administration

—

class

specific

..........................................................................................

204,924‌

Professional

.......................................................................................................

140,277‌

Registration

.......................................................................................................

88,973‌

Printing

and

postage

.................................................................................................

54,518‌

Accounting

services

..................................................................................................

44,312‌

Custodian

.........................................................................................................

18,729‌

Trustees

and

Officer

..................................................................................................

16,171‌

Miscellaneous

......................................................................................................

30,248‌

Total

expenses

excluding

interest

expense

.....................................................................................

5,212,593‌

Interest

expense

....................................................................................................

4,191‌

Total

expenses

.......................................................................................................

5,216,784‌

Less:

–‌

Administration

fees

waived

by

the

Manager

—

class

specific

.......................................................................

(

84,333‌

)

Fees

waived

and/or

reimbursed

by

the

Manager

...............................................................................

(

1,318,505‌

)

Transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific

..........................................................

(

12,883‌

)

Total

expenses

after

fees

waived

and/or

reimbursed

..............................................................................

3,801,063‌

Net

investment

income

..................................................................................................

40,996,525‌

REALIZED

AND

UNREALIZED

GAIN

(LOSS)

$

(

1,891,463‌

)

Net

realized

gain

from

investments

........................................................................................

92,104‌

Net

change

in

unrealized

depreciation

on

investments

...........................................................................

(

1,983,568‌

)

Net

realized

and

unrealized

loss

............................................................................................

(1,891,464‌)

NET

INCREASE

IN

NET

ASSETS

RESULTING

FROM

OPERATIONS

..................................................................

$

39,105,061‌

Statements

of

Changes

in

Net

Assets

13

Statements

of

Changes

in

Net

Assets

See

notes

to

financial

statements.

BlackRock

Short

Obligations

Fund

Year

Ended

07/31/26

Year

Ended

07/31/25

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

..............................................................................

$

40,996,525

‌

$

52,083,990

‌

Net

realized

gain

..................................................................................

92,104

‌

298,672

‌

Net

change

in

unrealized

appreciation

(depreciation)

..........................................................

(

1,983,568

)

1,312,107

‌

Net

increase

in

net

assets

resulting

from

operations

.............................................................

39,105,061

‌

53,694,769

‌

DISTRIBUTIONS

TO

SHAREHOLDERS

(a)

Institutional

.....................................................................................

(

25,290,843

)

(

30,609,861

)

Investor

A

......................................................................................

(

14,960,011

)

(

20,740,292

)

Class

K

.......................................................................................

(

754,837

)

(

732,959

)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

...................................................

(41,005,691

)

(52,083,112

)

CAPITAL

SHARE

TRANSACTIONS

Net

decrease

in

net

assets

derived

from

capital

share

transactions

...................................................

(149,619,418

)

(21,741,326

)

NET

ASSETS

Total

decrease

in

net

assets

............................................................................

(

151,520,048

)

(

20,129,669

)

Beginning

of

year

....................................................................................

1,113,134,413

‌

1,133,264,082

‌

End

of

year

........................................................................................

$

961,614,365

‌

$

1,113,134,413

‌

(a)

  Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

14

BlackRock

Short

Obligations

Fund

Institutional

Year

Ended

07/31/26

Year

Ended

07/31/25

Year

Ended

07/31/24

Year

Ended

07/31/23

Year

Ended

07/31/22

Net

asset

value,

beginning

of

year

..............................

$

10.08

‌

$

10.07

‌

$

10.00

‌

$

9.95

‌

$

10.05

‌

Net

investment

income

(a)

....................................

0

.41

‌

0

.46

‌

0

.50

‌

0

.32

‌

0

.04

‌

Net

realized

and

unrealized

gain

(loss)

...........................

(

0

.02

)

0

.01

‌

0

.07

‌

0

.07

‌

(

0

.09

)

Net

increase

(decrease)

from

investment

operations

...................

0.39

‌

0.47

‌

0.57

‌

0.39

‌

(0.05

)

Distributions

from

net

investment

income

(b)

.......................

(0.41

)

(0.46

)

(0.50

)

(0.34

)

(0.05

)

Net

asset

value,

end

of

year

..................................

$

10.06

‌

$

10.08

‌

$

10.07

‌

$

10.00

‌

$

9.95

‌

Total

Return

(c)

Based

on

net

asset

value

.....................................

3.94

%

4.77

%

5.80

%

3.96

%

(0.51

)%

Ratios

to

Average

Net

Assets

(d)

Total

expen

ses

............................................

0.42

%

0.40

%

0.39

%

0.38

%

0.36

%

Total

expenses

after

fees

waived

and/or

reimbursed

...................

0.29

%

0.29

%

0.27

%

0.28

%

0.26

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................................

0.29

%

0.28

%

0.27

%

0.28

%

0.26

%

Net

investment

income

......................................

4.08

%

4.57

%

4.96

%

3.22

%

0.45

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...................................

$

577,247

‌

$

686,354

‌

$

620,183

‌

$

700,104

‌

$

1,382,186

‌

Portfolio

turnover

rate

........................................

52

%

59

%

34

%

18

%

36

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

15

Financial

Highlights

BlackRock

Short

Obligations

Fund

Investor

A

Year

Ended

07/31/26

Year

Ended

07/31/25

Year

Ended

07/31/24

Year

Ended

07/31/23

Year

Ended

07/31/22

Net

asset

value,

beginning

of

year

..............................

$

10.08

‌

$

10.06

‌

$

9.99

‌

$

9.94

‌

$

10.05

‌

Net

investment

income

(a)

....................................

0

.39

‌

0

.44

‌

0

.47

‌

0

.30

‌

0

.02

‌

Net

realized

and

unrealized

gain

(loss)

...........................

(

0

.03

)

0

.02

‌

0

.07

‌

0

.07

‌

(

0

.11

)

Net

increase

(decrease)

from

investment

operations

...................

0.36

‌

0.46

‌

0.54

‌

0.37

‌

(0.09

)

Distributions

from

net

investment

income

(b)

.......................

(0.39

)

(0.44

)

(0.47

)

(0.32

)

(0.02

)

Net

asset

value,

end

of

year

..................................

$

10.05

‌

$

10.08

‌

$

10.06

‌

$

9.99

‌

$

9.94

‌

Total

Return

(c)

Based

on

net

asset

value

.....................................

3.63

%

4.65

%

5.56

%

3.73

%

(0.85

)%

Ratios

to

Average

Net

Assets

(d)

Total

expen

ses

............................................

0.65

%

0.63

%

0.63

%

0.62

%

0.61

%

Total

expenses

after

fees

waived

and/or

reimbursed

...................

0.50

%

0.50

%

0.50

%

0.50

%

0.50

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................................

0.50

%

0.50

%

0.50

%

0.50

%

0.50

%

Net

investment

income

......................................

3.87

%

4.36

%

4.73

%

3.03

%

0.19

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...................................

$

368,238

‌

$

408,842

‌

$

495,953

‌

$

605,942

‌

$

1,029,382

‌

Portfolio

turnover

rate

........................................

52

%

59

%

34

%

18

%

36

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

16

BlackRock

Short

Obligations

Fund

Class

K

Year

Ended

07/31/26

Year

Ended

07/31/25

Year

Ended

07/31/24

Year

Ended

07/31/23

Year

Ended

07/31/22

Net

asset

value,

beginning

of

year

..............................

$

10.08

‌

$

10.08

‌

$

10.01

‌

$

9.96

‌

$

10.07

‌

Net

investment

income

(a)

....................................

0

.42

‌

0

.47

‌

0

.50

‌

0

.33

‌

0

.04

‌

Net

realized

and

unrealized

gain

(loss)

...........................

(

0

.01

)

0

.00

(b)

0

.07

‌

0

.07

‌

(

0

.10

)

Net

increase

(decrease)

from

investment

operations

...................

0.41

‌

0.47

‌

0.57

‌

0.40

‌

(0.06

)

Distributions

from

net

investment

income

(c)

.......................

(0.42

)

(0.47

)

(0.50

)

(0.35

)

(0.05

)

Net

asset

value,

end

of

year

..................................

$

10.07

‌

$

10.08

‌

$

10.08

‌

$

10.01

‌

$

9.96

‌

Total

Return

(d)

Based

on

net

asset

value

.....................................

4.14

%

4.76

%

5.88

%

4.04

%

(0.55

)%

Ratios

to

Average

Net

Assets

(e)

Total

expen

ses

............................................

0.36

%

0.34

%

0.35

%

0.33

%

0.32

%

Total

expenses

after

fees

waived

and/or

reimbursed

...................

0.20

%

0.20

%

0.20

%

0.20

%

0.20

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................................

0.20

%

0.20

%

0.20

%

0.20

%

0.20

%

Net

investment

income

......................................

4.17

%

4.66

%

5.02

%

3.27

%

0.39

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...................................

$

16,130

‌

$

17,938

‌

$

17,128

‌

$

29,627

‌

$

54,203

‌

Portfolio

turnover

rate

........................................

52

%

59

%

34

%

18

%

36

%

(a)

Based

on

average

shares

outstanding.

(b)

Amount

is

less

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

a diversified fund

under

the

1940

Act.

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

date.

Non-cash

dividends,

if

any,

are

recorded

on

the

ex-dividend

date

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.

Cash:

The

Fund

may

maintain

cash

at its

custodian,

which

at

times

may

exceed

United

States

federally

insured

limits.

The

Fund

may,

at

times,

have

outstanding

cash

disbursements

that

exceed

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.  

Segment

Reporting:

The

Chief

Financial

Officer

acts

as

the

Fund’s

Chief

Operating

Decision

Maker

(“CODM”)

and

is

responsible

for

assessing

performance

and

allocating

resources

with

respect

to

the

Fund.

The

CODM

has

concluded

that

the

Fund

operates

as

a

single

operating

segment

since

the

Fund

has

a

single

investment

strategy

as

disclosed

in

its

prospectus,

against

which

the

CODM

assesses

performance.

The

financial

information

provided

to

and

reviewed

by

the

CODM

is

presented

within

the

Fund’s

financial

statements. 

Recent

Accounting

Standard:

The

Fund

adopted

Financial

Accounting

Standards

Board

Update

2023-09,

Income

Taxes

(Topic

740)

–

Improvements

to

Income

Tax

Disclosures

(“ASU

2023-09”)

during

the

period.

ASU

2023-09

enhances

income

tax

disclosures,

including

disclosure

of

income

taxes

paid

disaggregated

by

jurisdiction.

The

Fund’s

adoption

of

the

new

standard

did

not

have

a

material

impact

on financial

statement

disclosures

and

did

not

affect

the

Fund’s

financial

position

or

results

of

operations.

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

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)

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

18

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

and

certain

derivative

instruments for

which

market

quotations

are

readily

available

are

generally

valued

using

the

last

available

bid

price

(including

evaluated

prices) 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

of

securities

in

certain

asset

classes

may

trade

at

lower

prices

than

institutional

round

lots,

and

the

value

ultimately

realized

when

the

securities

are

sold

could

differ

from

the

prices

used

by

a

fund.

The

pricing

services

may

use

matrix

pricing

or

valuation

models

that

utilize

certain

inputs

and

assumptions

to

derive

values,

including

transaction

data

(e.g.,

recent

representative

bids

and

offers),

market

data, credit

quality

information,

perceived

market

movements,

news,

and

other

relevant

information.

Certain

fixed-income

securities,

including

asset-backed

and

mortgage

related

securities

may

be

valued

based

on

valuation

models

that

consider

the

estimated

cash

flows

of

each

tranche

of

the

entity,

establish

a

benchmark

yield

and

develop

an

estimated

tranche

specific

spread

to

the

benchmark

yield

based

on

the

unique

attributes

of

the

tranche.

The

amortized

cost

method

of

valuation

may

be

used

with

respect

to

debt

obligations

with

sixty

days

or

less

remaining

to

maturity

unless

the

Manager

determines

such

method

does

not

represent

fair

value.

Investments

in

open-end

U.S.

mutual

funds

(including

money

market

funds) are

valued

at

that

day’s

net

asset

value

(“NAV”).

Repurchase

agreements

are

valued

at

amortized

cost,

which

approximates

market

value. 

If

events

(e.g.,

market

volatility,

company

announcement or

a

natural

disaster)

occur

that

are

expected

to

materially

affect

the

value

of

such

investment,

or

in

the

event

that application

of

these

methods

of

valuation

results

in

a

price

for

an

investment

that

is

deemed

not

to

be

representative

of

the

market

value

of

such

investment,

or

if

a

price

is

not

available,

the

investment

will

be

valued

by

the

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

as

of

the

measurement

date.

Fair

Value

Hierarchy:

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments

at

the

measurement

date.

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

that

the

Fund

has

the

ability

to

access

for

identical

assets

or

liabilities;

Level

2

—

Inputs

other

than

quoted

prices

included

within

Level

1

that

are

observable

for

the

asset

or

liability,

either

directly

or

indirectly;

and

Level

3 —

Inputs

that

are

unobservable

and

significant

to

the

entire

fair

value

measurement

for the

asset

or

liability

(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. 

Notes

to

Financial

Statements

(continued)

19

Notes

to

Financial

Statements

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. 

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,

majority-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,

2026,

the

class

specific

service

fees

borne

directly

by Investor

A Shares

of

the

Fund

were

$966,108.

Administration:

The

Trust,

on

behalf

of

the

Fund,

entered

into

an

Administration

Agreement

with

the

Manager,

an

indirect,

majority-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.

Average

Daily

Net

Assets

Investment

Advisory

Fees

First

$1

billion

.........................................................................................................

0.25%

In

excess

of

$1

billion

but

not

exceeding

$3

billion

.................................................................................

0.24

In

excess

of

$3

billion

but

not

exceeding

$5

billion

................................................................................

0.23

In

excess

of

$5

billion

but

not

exceeding

$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%

In

excess

of

$500

million

but

not

exceeding

$1

billion

..............................................................................

0.0400

In

excess

of

$1

billion

but

not

exceeding

$2

billion

...............................................................................

0.0375

In

excess

of

$2

billion

but

not

exceeding

$4

billion

................................................................................

0.0350

In

excess

of

$4

billion

but

not

exceeding

$13

billion

...............................................................................

0.0325

Greater

than

$13

billion

..................................................................................................

0.0300

Notes

to

Financial

Statements

(continued)

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

20

For

the

year

ended

July

31,

2026, 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,

2026

,

the

Fund

did

not

pay

any

amounts

to

affiliates

in

return

for

these

services.

The

Manager

maintains

a

call

center

that

is

responsible

for

providing

certain

shareholder

services

to

the

Fund.

Shareholder

services

include

responding

to

inquiries

and

processing

purchases

and

sales

based

upon

instructions

from

shareholders.

For

the year

ended

July

31,

2026,

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,

2026,

the

following

table

shows

the

class

specific

transfer

agent

fees

borne

directly

by

each

share

class

of

the

Fund:

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,

2027.

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 

contractual

waivers

and/or

reimbursements

of

fees

and

expenses

made

pursuant

to

the

contractual

caps

on

net

expenses

 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,

2026

,

the

amount

waived

was

$

227

.

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,

2027.

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,

2026,

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,

2026,

the

Manager

waived

and/or

reimbursed

investment

advisory

fees

of

$1,318,278 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 fees

waived

and/or

reimbursed

by

the

Manager,

administration

fees

waived

by

the

Manager

—

class

specific

and

transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager—class

specific, respectively,

in

the

Statement

of

Operations.

For

the

year ended

July

31,

2026,

class

specific

expense

waivers

and/or

reimbursements were as

follows: 

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

Class

K

Total

Administration

fees

-

class

specific

.......................................................

$

124,017‌

$

77,288‌

$

3,619‌

$

204,924‌

Institutional

Investor

A

Total

Reimbursed

Amount

..............................................................................

$

999‌

$

8,179‌

$

9,178‌

Institutional

Investor

A

Class

K

Total

Transfer

agent

fees

-

class

specific

.......................................................

$

464,650‌

$

202,505‌

$

1,701‌

$

668,856‌

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,

2027,

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

Institutional

....................................................................................

$

5,447‌

$

12‌

Investor

A

.....................................................................................

75,267‌

11,170‌

Class

K

......................................................................................

3,619‌

1,701‌

$

84,333‌

$

12,883‌

Notes

to

Financial

Statements

(continued)

21

Notes

to

Financial

Statements

6.

PURCHASES

AND

SALES 

For

the year ended

July

31,

2026,

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,

2026,

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.

Management’s

analysis

is

based

on

the

tax

laws

and

judicial

and

administrative

interpretations

thereof

in

effect

as

of

the

date

of

these

financial

statements,

all

of

which

are

subject

to

change,

possibly

with

retroactive

effect,

which

may

impact

the

Fund’s

NAV.

The

tax

character

of

distributions

paid

was

as

follows: 

As

of

July

31,

2026

,

the

tax

components

of

accumulated earnings

(loss) were

as

follows:  

(a)

Amounts

available

to

offset

future

realized

capital

gains.

During

the

year

ended July

31,

2026,

the

Fund utilized

the

following

amount

of

its

capital

loss

carryforward:

As

of

July

31,

2026, 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

2027

unless

extended

or

renewed. These

fees

were

allocated

among

such

funds

based

upon

portions

of

the

aggregate

commitment

available

to

them

and

relative

net

assets

of

Participating

Funds.

During

the

year ended

July

31,

2026,

the

Fund

did

not

borrow

under

the

credit

agreement.

U.S.

Government

Securities

Other

Securities

Fund

Name

Sales

Purchases

Sales

BlackRock

Short

Obligations

Fund

..........................................

$

11,680,932‌

$

303,194,116‌

$

331,169,887‌

Fund

Name

Year

Ended

07/31/26

Year

Ended

07/31/25

BlackRock

Short

Obligations

Fund

Ordinary

income

......................................................................................

$

41,005,691

$

52,083,112

Fund

Name

Undistributed

Ordinary

Income

Non-Expiring

Capital

Loss

Carryforwards

(a)

Net

Unrealized

Gains

(Losses)

Total

BlackRock

Short

Obligations

Fund

.............................................

$

106,696‌

$

(11,835,493‌)

$

(663,916‌)

$

(12,392,713‌)

Fund

Name

Amount

Utilized

BlackRock

Short

Obligations

Fund

.........................................................................................

$

92,104‌

Fund

Name

Tax

Cost

Gross

Unrealized

Appreciation

Gross

Unrealized

Depreciation

Net

Unrealized

Appreciation

(Depreciation)

BlackRock

Short

Obligations

Fund

......................................

$

961,347,080‌

$

534,775‌

$

(

1,198,691‌

)

$

(

663,916‌

)

Notes

to

Financial

Statements

(continued)

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

22

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,

tariffs or

international

tax

treaties

between

various

countries;

or

(iv)

currency,

interest

rate

or

price

fluctuations.

Local,

regional

or

global

events

such

as

war,

acts

of

terrorism,

the

spread

of

infectious

illness

or

other

public

health

issues,

recessions,

or

other

events

could

have

a

significant

impact

on

the

Fund

and its

investments.

The

Fund’s

prospectus

provides

details

of

the

risks

to

which

the

Fund

is

subject. 

Market Risk:

The

Fund

may

be

exposed

to

prepayment

risk,

which

is

the

risk

that

borrowers

may

exercise

their

option

to

prepay

principal

earlier

than

scheduled

during

periods

of

declining

interest

rates,

which

would

force

the

Fund

to

reinvest

in

lower

yielding

securities. The

Fund

may

also

be

exposed

to

reinvestment

risk,

which

is

the

risk

that

income

from

the

Fund’s

portfolio

will

decline

if

the Fund

invests

the

proceeds

from

matured,

traded

or

called

fixed-income

securities

at

market

interest

rates

that

are

below

the

Fund

portfolio’s

current

earnings

rate.

Municipal

securities

are

subject

to

the

risk

that

litigation,

legislation

or

other

political

events,

local

business

or

economic

conditions,

credit

rating

downgrades,

or

the

bankruptcy

of

the

issuer

could

have

a

significant

effect

on

an

issuer’s

ability

to

make

payments

of

principal

and/or

interest

or

otherwise

affect

the

value

of

such

securities.

Municipal

securities

can

be

significantly

affected

by

political

or

economic

changes,

including

changes

made

in

the

law

after

issuance

of

the

securities,

as

well

as

uncertainties

in

the

municipal

market

related

to

taxation,

legislative

changes

or

the

rights

of

municipal

security

holders,

including

in

connection

with

an

issuer

insolvency.

Municipal

securities

backed

by

current

or

anticipated

revenues

from

a

specific

project

or

specific

assets

can

be

negatively

affected

by

the

discontinuance

of

the

tax

benefits

supporting

the

project

or

assets

or

the

inability

to

collect

revenues

for

the

project

or

from

the

assets.

Municipal

securities

may

be

less

liquid

than

taxable

bonds,

and

there

may

be

less

publicly

available

information

on

the

financial

condition

of

municipal

security

issuers

than

for

issuers

of

other

securities.

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

securities

within

a

single

or

limited

number

of

market

sectors.

When

a

fund

concentrates

its

investments

in

this

manner,

it

assumes

the

risk

that

economic,

regulatory,

political

and

social

conditions

affecting

such

sectors

may

have

a

significant

impact

on

the

Fund

and

could

affect

the

income

from,

or

the

value

or

liquidity

of,

the

Fund’s

portfolio.

Investment

percentages

in

specific

sectors

are

presented

in

the

Schedule

of

Investments.

The

Fund

invests

a

significant

portion

of

its

assets

in fixed-income securities and/or uses

derivatives tied

to

the

fixed-income

markets.

Changes

in

market

interest

rates

or

economic

conditions

may affect

the

value

and/or

liquidity

of

such investments.

Interest

rate

risk

is

the

risk

that

prices

of

bonds

and

other

fixed-income

securities

will

decrease

as

interest

rates

rise

and

increase

as

interest

rates

fall.

The

Fund

may

be

subject

to

a

greater

risk

of

rising

interest

rates

during

a

period

of

historically

low

interest

rates.

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.

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.

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

07/31/26

Year

Ended

07/31/25

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

BlackRock

Short

Obligations

Fund

Institutional

Shares

sold

.............................................

38,669,315‌

$

389,831,313‌

51,859,790‌

$

522,617,996‌

Shares

issued

in

reinvestment

of

distributions

........................

2,507,612‌

25,278,714‌

3,033,958‌

30,580,187‌

Shares

redeemed

.........................................

(

51,907,324‌

)

(

523,291,249‌

)

(

48,397,177‌

)

(

487,715,926‌

)

(

10,730,397‌

)

$

(

108,181,222‌

)

6,496,571‌

$

65,482,257‌

Investor

A

Shares

sold

.............................................

11,644,586‌

$

117,306,681‌

13,753,123‌

$

138,492,990‌

Shares

issued

in

reinvestment

of

distributions

........................

1,482,993‌

14,937,175‌

2,056,243‌

20,711,452‌

Shares

redeemed

.........................................

(

17,062,780‌

)

(

171,894,108‌

)

(

24,549,229‌

)

(

247,226,910‌

)

(

3,935,201‌

)

$

(

39,650,252‌

)

(

8,739,863‌

)

$

(

88,022,468‌

)

Class

K

Shares

sold

.............................................

498,242‌

$

5,029,965‌

636,053‌

$

6,414,089‌

Shares

issued

in

reinvestment

of

distributions

........................

74,792‌

754,715‌

68,486‌

691,087‌

Shares

redeemed

.........................................

(

750,519‌

)

(

7,572,624‌

)

(

625,007‌

)

(

6,306,291‌

)

(

177,485‌

)

$

(

1,787,944‌

)

79,532‌

$

798,885‌

(

14,843,083‌

)

$

(

149,619,418‌

)

(

2,163,760‌

)

$

(

21,741,326‌

)

Report

of

Independent

Registered

Public

Accounting

Firm

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

24

To

the

Board

of

Trustees

of

BlackRock

Funds

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,

referred

to

hereafter

as

the

“Fund”)

as

of

July

31,

2026,

the

related

statement

of

operations

for

the

year

ended

July

31,

2026,

the

statement

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

ended

July

31,

2026,

including

the

related

notes,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

July

31,

2026

(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,

2026,

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,

2026

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

ended

July

31,

2026

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,

2026

by

correspondence

with

the

custodian,

transfer

agent

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

/s/

PricewaterhouseCoopers

LLP

Philadelphia,

Pennsylvania

September

23,

2026

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,

2026:

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,

2026:

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,

2026

: 

Fund

Name

Federal

Obligation

Interest

BlackRock

Short

Obligations

Fund

.......................................................................................

$

991,962‌

Fund

Name

Interest

Dividends

BlackRock

Short

Obligations

Fund

.......................................................................................

$

40,996,525‌

Fund

Name

Interest-Related

Dividends

BlackRock

Short

Obligations

Fund

.......................................................................................

$

32,452,399‌

Additional

Information

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

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,

shareholder

reports,

semi-annual

and

annual

financial

statements,

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

5PP

United

Kingdom

Accounting

Agent

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Transfer

Agent

BNY

Mellon

Investment

Servicing

(US)

Inc.

Westborough,

MA

01581

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

Ropes

&

Gray

LLP

New

York,

NY

10036

Address

of

the

Trust

100

Bellevue

Parkway

Wilmington,

DE

19809

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

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

22,

2026

(the

“April

Meeting”)

and

May

19-20,

2026

(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

during

the

year,

as

well

as

numerous

ad

hoc

meetings

and

executive

sessions

throughout

the

year,

as

needed.

The

committees

of

the

Board

similarly

met

throughout

the

year.

The

Board

also

held

the

April

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

provided

additional

information

to

the

Board

in

response

to

specific

questions

and

requests

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

material

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

applicable

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

development

and

application

of

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

applicable;

(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

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,

as

applicable;

(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

or

benefits

that

inure

to

BlackRock

or

its

affiliates

including

relating

to,

as

applicable,

securities

lending

and

cash

management

activities

of

a

Fund.

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

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

(continued)

29

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

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.

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

funds,

relevant

benchmarks,

and

performance

metrics,

as

applicable.

Throughout

the

year,

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

(including

the

tenure

of

or

changes

in

the

portfolio

management

team);

research

capabilities;

investments

by

portfolio

managers

in

the

funds

they

manage;

portfolio

trading

capabilities;

use

of

certain

trading,

portfolio

management,

operations

and/or

information

systems

owned

by

BlackRock;

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,

the

role

of

BlackRock’s

Risk

&

Quantitative

Analysis

Group,

and

BlackRock’s

policies

and

procedures

for

third-party

vendor

oversight.

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

net

asset

value;

and

services

related

to

the

valuation

and

pricing

of

the

Fund’s

portfolio

holdings;

(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

also

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

located

outside

of

the

United

States.

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.

The

Board

was

provided

with

Fund

performance

reporting

and

analysis,

relative

to

applicable

performance

metrics,

by

BlackRock

throughout

the

year

and

at

the

April

Meeting.

In

preparation

for

the

April

Meeting,

the

Board

was

also

provided

with

reports

independently

prepared

by

Broadridge,

which

included

an

analysis

of

the

Fund’s

performance

as

of

December

31,

2025,

as

compared

to

its

Performance

Peers.

Broadridge

ranks

funds

in

quartiles,

ranging

from

first

to

fourth,

where

first

is

the

most

desirable

quartile

position

and

fourth

is

the

least

desirable.

In

connection

with

its

review,

the

Board

received

and

reviewed

information

regarding

the

investment

performance

of

the

Fund

as

compared

to

its

Performance

Peers.

The

Board

and

its

Performance

Oversight

Committee

regularly

review

and

meet

with

Fund

management

to

discuss

the

performance

of

the

Fund

throughout

the

year.

The

Board

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.

In

addition

to

reviewing

the

Fund’s

performance

and

current

yield,

the

Board

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

third

and

fourth

quartiles,

respectively,

against

its

Performance

Peers.

The

Board

and

BlackRock

reviewed

the

Fund’s

underperformance

relative

to

its

Performance

Peers

during

the

applicable

periods.

C.

Consideration

of

the

Advisory/Management

Fees

and

the

Estimated

Costs

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

also

noted

that

while

it

found

the

expense

comparison

provided

by

Broadridge

generally

useful,

it

recognized

that

the

comparison

is

subject

to

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreement

(continued)

2026

BlackRock

Annual

Financial

Statements

and

Additional

Information

30

Broadridge’s

defined

peer

selection

criteria

and

methodology.

The

Board

considered

the

services

provided

and

the

fees

charged

by

BlackRock

and

its

affiliates

to

other

types

of

clients

with

similar

investment

mandates,

as

applicable,

including

institutional

accounts

and

sub-advised

mutual

funds

(including

mutual

funds

sponsored

by

third

parties).

The

Board

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,

2025

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

the

limitations

of

calculating

and

comparing

profitability

at

the

individual

fund

level.

The

Board

received

and

reviewed

statements

relating

to

BlackRock’s

financial

condition.

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

BlackRock’s

technology

business,

BlackRock’s

expense

management,

and

the

relative

product

mix.

The

Board

noted

that,

in

general,

individual

fund

or

product

line

profitability

information

for

other

advisors

is

not

publicly

available.

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

noted

that

the

Fund’s

contractual

management

fee

rate

ranked

in

the

second

quartile,

and

that

the

actual

management

fee

rate

and

total

expense

ratio

ranked

in

the

second

and

first

quartiles,

respectively,

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.

The

Board

also

noted

the

revenue

received

by

BlackRock

and/or

its

affiliates

pursuant

to

an

agreement

that

permits

a

service

provider

to

use

certain

portions

of

BlackRock’s

technology

platform

to

service

accounts

managed

by

BlackRock

and/or

its

affiliates.

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

considered

BlackRock’s

overall

operations

and

its

efforts

to

expand

the

scale

of,

and

improve

the

quality

of,

its

operations.

The

Board

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.

Throughout

the

year,

the

Board

also

received

information

and

reporting,

as

applicable,

regarding

BlackRock’s

soft

dollar,

brokerage,

and

trade

execution

practices.

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,

2027,

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,

2027.

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

these

Financial

Statements

31

Glossary

of

Terms

Used

in

these

Financial

Statements

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 (the “Exchange Act”).

(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.

(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.

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, 2026 

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, 2026 

By:     /s/ Trent Walker                      

          Trent Walker

Chief Financial Officer (principal financial officer) of

BlackRock FundsSM

Date: September 23, 2026

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