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:
811-23344 and 811-23343
Name of Fund:
BlackRock Funds VI
BlackRock Advantage CoreAlpha Bond Fund

Master Investment Portfolio II
Advantage CoreAlpha Bond Master Portfolio
Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service:  John M. Perlowski, Chief Executive Officer, BlackRock Funds VI and Master Investment Portfolio II, 50 Hudson Yards, New York, NY 10001
Registrant's telephone number, including area code:
(800) 441-7762
Date of fiscal year end:
12/31/2025
Date of reporting period:
12/31/2025
Item 1 — Report to Stockholders
(a) The Report to Shareholders is attached herewith
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BlackRock Advantage CoreAlpha Bond Fund
Institutional Shares | BCRIX
Annual Shareholder Report — December 31, 2025
This annual shareholder report contains important information about BlackRock Advantage CoreAlpha Bond Fund (the “Fund”) for the period of January 1, 2025 to December 31, 2025. The Fund invests all of its assets in the Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio II.  You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year ?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $30(a) 0.29%(a)
​(a)
Because the Fund invests all of its assets in the Master Portfolio, the expense example reflects the net expenses of both the Fund and the Master Portfolio.
How did the Fund perform last year ?
  • For the reporting period ended December 31, 2025, the Fund’s Institutional Shares returned 6.79%.
  • For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index returned 7.30%.
What contributed to performance?
Positive contributions to the Fund’s absolute performance for the period were led by exposure to higher yielding, credit-oriented areas of the bond market as a resilient economy supported stable credit spreads, with the exception of a brief spike in early April on tariff fears. In addition, as the period progressed and labor data softened, the market anticipated that the U.S. Federal Reserve was poised to begin cutting its benchmark overnight lending rate, leading yields lower and bond prices higher. Specifically, the Fund’s holdings of securitized assets, high yield corporate bonds and investment grade corporate bonds led contributions to return.
What detracted from performance?
The Fund’s positioning across global interest rate markets using cross-market rate swaps was the largest detractor from absolute performance for the period.
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: January 1, 2016 through December 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
 See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares 6.79 % (0.67 )% 2.08 %
Bloomberg U.S. Aggregate Bond Index 7.30 (0.36 ) 2.01
Key Fund statistics
Net Assets $722,727,638
Number of Portfolio Holdings 1
Net Investment Advisory Fees $1,700,178
Portfolio Turnover Rate of the Master Portfolio 183%
On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock CoreAlpha Bond Fund (the “Predecessor Fund”), a series of BlackRock Funds III, through a tax-free reorganization (the “Board Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Board Reorganization.
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.
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 and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 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.
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BlackRock Advantage CoreAlpha Bond Fund
Institutional Shares | BCRIX
Annual Shareholder Report — December 31, 2025
BCRIX-12/25-AR
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BlackRock Advantage CoreAlpha Bond Fund
Investor A Shares | BCRAX
Annual Shareholder Report — December 31, 2025
This annual shareholder report contains important information about BlackRock Advantage CoreAlpha Bond Fund (the “Fund”) for the period of January 1, 2025 to December 31, 2025. The Fund invests all of its assets in the Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio II.  You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year ?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $56(a) 0.54%(a)
​(a)
Because the Fund invests all of its assets in the Master Portfolio, the expense example reflects the net expenses of both the Fund and the Master Portfolio.
How did the Fund perform last year ?
  • For the reporting period ended December 31, 2025, the Fund’s Investor A Shares returned 6.53%.
  • For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index returned 7.30%.
What contributed to performance?
Positive contributions to the Fund’s absolute performance for the period were led by exposure to higher yielding, credit-oriented areas of the bond market as a resilient economy supported stable credit spreads, with the exception of a brief spike in early April on tariff fears. In addition, as the period progressed and labor data softened, the market anticipated that the U.S. Federal Reserve was poised to begin cutting its benchmark overnight lending rate, leading yields lower and bond prices higher. Specifically, the Fund’s holdings of securitized assets, high yield corporate bonds and investment grade corporate bonds led contributions to return.
What detracted from performance?
The Fund’s positioning across global interest rate markets using cross-market rate swaps was the largest detractor from absolute performance for the period.
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: January 1, 2016 through December 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
 See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares 6.53 % (0.92 )% 1.80 %
Investor A Shares (with sales charge) 2.27 (1.72 ) 1.38
Bloomberg U.S. Aggregate Bond Index 7.30 (0.36 ) 2.01
Key Fund statistics
Net Assets $722,727,638
Number of Portfolio Holdings 1
Net Investment Advisory Fees $1,700,178
Portfolio Turnover Rate of the Master Portfolio 183%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock CoreAlpha Bond Fund (the “Predecessor Fund”), a series of BlackRock Funds III, through a tax-free reorganization (the “Board Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Board Reorganization.
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.
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 and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 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.
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BlackRock Advantage CoreAlpha Bond Fund
Investor A Shares | BCRAX
Annual Shareholder Report — December 31, 2025
BCRAX-12/25-AR
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BlackRock Advantage CoreAlpha Bond Fund
Investor C Shares | BCRCX
Annual Shareholder Report — December 31, 2025
This annual shareholder report contains important information about BlackRock Advantage CoreAlpha Bond Fund (the “Fund”) for the period of January 1, 2025 to December 31, 2025. The Fund invests all of its assets in the Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio II.  You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year ?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $133(a) 1.29%(a)
​(a)
Because the Fund invests all of its assets in the Master Portfolio, the expense example reflects the net expenses of both the Fund and the Master Portfolio.
How did the Fund perform last year ?
  • For the reporting period ended December 31, 2025, the Fund’s Investor C Shares returned 5.75%.
  • For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index returned 7.30%.
What contributed to performance?
Positive contributions to the Fund’s absolute performance for the period were led by exposure to higher yielding, credit-oriented areas of the bond market as a resilient economy supported stable credit spreads, with the exception of a brief spike in early April on tariff fears. In addition, as the period progressed and labor data softened, the market anticipated that the U.S. Federal Reserve was poised to begin cutting its benchmark overnight lending rate, leading yields lower and bond prices higher. Specifically, the Fund’s holdings of securitized assets, high yield corporate bonds and investment grade corporate bonds led contributions to return.
What detracted from performance?
The Fund’s positioning across global interest rate markets using cross-market rate swaps was the largest detractor from absolute performance for the period.
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: January 1, 2016 through December 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
 See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares 5.75 % (1.67 )% 1.20 %
Investor C Shares (with sales charge) 4.75 (1.67 ) 1.20
Bloomberg U.S. Aggregate Bond Index 7.30 (0.36 ) 2.01
Key Fund statistics
Net Assets $722,727,638
Number of Portfolio Holdings 1
Net Investment Advisory Fees $1,700,178
Portfolio Turnover Rate of the Master Portfolio 183%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock CoreAlpha Bond Fund (the “Predecessor Fund”), a series of BlackRock Funds III, through a tax-free reorganization (the “Board Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Board Reorganization.
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.
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 and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 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.
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BlackRock Advantage CoreAlpha Bond Fund
Investor C Shares | BCRCX
Annual Shareholder Report — December 31, 2025
BCRCX-12/25-AR
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BlackRock Advantage CoreAlpha Bond Fund
Class K Shares | BCRKX
Annual Shareholder Report — December 31, 2025
This annual shareholder report contains important information about BlackRock Advantage CoreAlpha Bond Fund (the “Fund”) for the period of January 1, 2025 to December 31, 2025. The Fund invests all of its assets in the Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio II.  You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year ?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $25(a) 0.24%(a)
​(a)
Because the Fund invests all of its assets in the Master Portfolio, the expense example reflects the net expenses of both the Fund and the Master Portfolio.
How did the Fund perform last year ?
  • For the reporting period ended December 31, 2025, the Fund’s Class K Shares returned 6.84%.
  • For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index returned 7.30%.
What contributed to performance?
Positive contributions to the Fund’s absolute performance for the period were led by exposure to higher yielding, credit-oriented areas of the bond market as a resilient economy supported stable credit spreads, with the exception of a brief spike in early April on tariff fears. In addition, as the period progressed and labor data softened, the market anticipated that the U.S. Federal Reserve was poised to begin cutting its benchmark overnight lending rate, leading yields lower and bond prices higher. Specifically, the Fund’s holdings of securitized assets, high yield corporate bonds and investment grade corporate bonds led contributions to return.
What detracted from performance?
The Fund’s positioning across global interest rate markets using cross-market rate swaps was the largest detractor from absolute performance for the period.
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: January 1, 2016 through December 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
 See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class K Shares 6.84 % (0.64 )% 2.12 %
Bloomberg U.S. Aggregate Bond Index 7.30 (0.36 ) 2.01
Key Fund statistics
Net Assets $722,727,638
Number of Portfolio Holdings 1
Net Investment Advisory Fees $1,700,178
Portfolio Turnover Rate of the Master Portfolio 183%
On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock CoreAlpha Bond Fund (the “Predecessor Fund”), a series of BlackRock Funds III, through a tax-free reorganization (the “Board Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Board Reorganization.
Prior to March 28, 2016 for Class K Shares, the performance of the class is based on the returns of a series of Master Investment Portfolio, adjusted to reflect the estimated annual fund fees and operating expenses of the respective share class of the Predecessor Fund.
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.
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 and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 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.
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BlackRock Advantage CoreAlpha Bond Fund
Class K Shares | BCRKX
Annual Shareholder Report — December 31, 2025
BCRKX-12/25-AR
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Advantage CoreAlpha Bond Master Portfolio
Annual Shareholder Report — December 31, 2025
This annual shareholder report contains important information about Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”) for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Master Portfolio, which is included within the BlackRock Advantage CoreAlpha Bond Fund’s additional information at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Master Portfolio costs for the last year ?
(based on a hypothetical $10,000 investment)
Master Portfolio name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Advantage CoreAlpha Bond Master Portfolio $25 0.24%
Key Master Portfolio statistics
Net Assets $723,031,885
Number of Portfolio Holdings 2,059
Net Investment Advisory Fees $1,700,178
Portfolio Turnover Rate 183%
What did the Master Portfolio invest in?
(as of December 31, 2025)
Portfolio composition
Investment Type Percent of Total
Investments(a)
Corporate Bonds 36.8 %
U.S. Government Sponsored Agency Securities 27.3 %
U.S. Treasury Obligations 16.9 %
Non-Agency Mortgage-Backed Securities 12.7 %
Asset-Backed Securities 5.2 %
Foreign Agency Obligations 0.6 %
Municipal Bonds 0.5 %
Capital Trusts — %(b)
Common Stocks — %(b)
Credit quality allocation
Credit Rating(c) Percent of Total
Investments(a)
AAA/Aaa(d) 45.8 %
AA/Aa 3.2 %
A 14.3 %
BBB/Baa 23.9 %
BB/Ba 4.8 %
B 2.2 %
CCC/Caa 0.5 %
N/R 5.3 %
​(a)
Excludes short-term securities, short investments and options, if any.
​(b)
Rounds to less than 0.1%.
​(c)
For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.
​(d)
The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa.
Additional information
If you wish to view additional information about the Master Portfolio, including but not limited to financial statements and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
©2025 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.
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Advantage CoreAlpha Bond Master Portfolio
Annual Shareholder Report — December 31, 2025
12/25-AR

(b) Not Applicable

 

Item 2 –

Code of Ethics – Each registrant (each a “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 registrants undertake 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 – Each registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Arthur P. Steinmetz

Lorenzo A. Flores

Catherine A. Lynch

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

 

Item 4 –

Principal Accountant Fees and Services

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

 

     (a) Audit Fees   

(b) Audit-Related

Fees1

    (c) Tax Fees2    (d) All Other Fees
Entity Name  

 Current 
Fiscal

Year

End

   

 Previous 

Fiscal

Year

End

   

 Current 

Fiscal

Year

End

   

 Previous 

Fiscal

Year

End

   

 Current 

Fiscal

Year

End

   

 Previous 

Fiscal

Year

End

   

 Current 

Fiscal

Year

End

   

 Previous 

Fiscal

Year

End

BlackRock Advantage CoreAlpha Bond Fund   $11,514    $11,514    $0    $0    $17,850    $17,000    $0    $0
Advantage CoreAlpha Bond Master Portfolio   $45,450    $45,450    $0    $0    $0    $0    $0    $0

The following table presents fees billed by PwC that were required to be approved by each registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Funds 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 Funds (“Affiliated Service Providers”):

 

      Current Fiscal Year End      Previous Fiscal Year End 

(b) Audit-Related Fees1

   $0    $0

(c) Tax Fees2

   $0    $0

(d) All Other Fees3

   $0    $0

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

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

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

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the 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

 

2

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

 

Entity Name     Current Fiscal Year 
End		     Previous Fiscal 
Year End
BlackRock Advantage CoreAlpha Bond Fund    $17,850    $17,000
Advantage CoreAlpha Bond Master Portfolio    $0    $0

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) Not Applicable

(j) Not Applicable

 

Item 5 –

Audit Committee of Listed Registrant – Not Applicable

 

Item 6 –

Investments

(a) The registrants’ 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 registrants’ Financial Statements are attached herewith.

(b) The registrants’ Financial Highlights are attached herewith.

 

 

3

 
December 31, 2025 
2025 Annual Financial Statements
and Additional Information
 
BlackRock Funds VI
• BlackRock Advantage CoreAlpha Bond Fund
 
Not FDIC Insured • May Lose Value • No Bank Guarantee
Table of Contents 
Page
 
3
4
6
7
8
12
16
17
18
42
43
44
45
46
57
58
60
2
Derivative Financial Instruments
The Advantage CoreAlpha Bond Master Portfolio (the "Master Portfolio") may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Master Portfolio must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Master Portfolio’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Master Portfolio can realize on an investment and/or may result in lower distributions paid to shareholders. The Master Portfolio’s investments in these instruments, if any, are discussed in detail in the Master Portfolio Notes to Financial Statements.
BlackRock Advantage CoreAlpha Bond Fund
Derivative Financial Instruments
3
Statement of Assets and Liabilities
December 31, 2025
 
 
BlackRock
Advantage
CoreAlpha
Bond Fund
ASSETS
Investments, at value — Master Portfolio
$ 723,031,885
Receivables:
Capital shares sold
1,346,961
From the Administrator
2,459
Total assets
724,381,305
LIABILITIES
Payables:
Administration fees
29,697
Capital shares redeemed
763,221
Contributions to the Master Portfolio
583,740
Income dividend distributions
212,225
Professional fees
11,512
Service and distribution fees
53,272
Total liabilities
1,653,667
Commitments and contingent liabilities
NET ASSETS
$ 722,727,638
NET ASSETS CONSIST OF
Paid-in capital
$ 918,893,647
Accumulated loss
(196,166,009)
NET ASSETS
$ 722,727,638
4
2025 BlackRock Annual Financial Statements and Additional Information
Statement of Assets and Liabilities  (continued)
December 31, 2025
 
 
BlackRock
Advantage
CoreAlpha
Bond Fund
NET ASSET VALUE
Institutional
Net assets
$ 412,657,645
Shares outstanding
47,177,995
Net asset value
$ 8.75
Shares authorized
Unlimited
Par value
No par value
Investor A
Net assets
$ 251,414,762
Shares outstanding
28,739,149
Net asset value
$ 8.75
Shares authorized
Unlimited
Par value
No par value
Investor C
Net assets
$ 513,974
Shares outstanding
58,731
Net asset value
$ 8.75
Shares authorized
Unlimited
Par value
No par value
Class K
Net assets
$ 58,141,257
Shares outstanding
6,641,365
Net asset value
$ 8.75
Shares authorized
Unlimited
Par value
No par value
See notes to financial statements.
Fund Statement of Assets and Liabilities
5
Statement of Operations
Year Ended December 31, 2025
 
 
BlackRock
Advantage
CoreAlpha
Bond Fund
INVESTMENT INCOME
Net investment income allocated from the Master Portfolio:
Dividends — affiliated
$359,521
Interest — unaffiliated
34,162,014
Securities lending income — affiliated — net
104,857
Payment-in-kind interest — unaffiliated
5,597
Expenses
(1,764,322
)
Fees waived
64,144
Total investment income
32,931,811
FUND EXPENSES
Service and distribution — class specific
648,204
Administration — class specific
354,667
Professional
11,463
Miscellaneous
3,561
Total expenses
1,017,895
Less fees waived and/or reimbursed by the Administrator
(42,183
)
Total expenses after fees waived and/or reimbursed
975,712
Net investment income
31,956,099
REALIZED AND UNREALIZED GAIN (LOSS) ALLOCATED FROM THE MASTER PORTFOLIO
Net realized gain (loss) from:
Investments — unaffiliated
(3,555,661
)
Investments — affiliated
(2,020
)
Forward foreign currency exchange contracts
(411,104
)
Foreign currency transactions
204,368
Futures contracts
(1,594,368
)
Swaps
(1,092,071
)
 
(6,450,856
)
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated
20,272,714
Investments — affiliated
394
Forward foreign currency exchange contracts
11,563
Foreign currency translations
123,072
Futures contracts
190,416
Swaps
423,790
 
21,021,949
Net realized and unrealized gain
14,571,093
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$46,527,192
See notes to financial statements.
6
2025 BlackRock Annual Financial Statements and Additional Information
Statements of Changes in Net Assets
 
 
BlackRock Advantage CoreAlpha Bond Fund
 
Year Ended
12/31/25
Year Ended
12/31/24
 
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income
$31,956,099
$30,331,219
Net realized loss
(6,450,856
)
(5,246,735
)
Net change in unrealized appreciation (depreciation)
21,021,949
(13,156,042
)
Net increase in net assets resulting from operations
46,527,192
11,928,442
DISTRIBUTIONS TO SHAREHOLDERS(a)
Institutional
(18,079,408
)
(16,121,819
)
Investor A
(11,283,389
)
(11,802,257
)
Investor C
(16,050
)
(19,310
)
Class K
(2,874,236
)
(2,616,453
)
Decrease in net assets resulting from distributions to shareholders
(32,253,083
)
(30,559,839
)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions
10,086,262
(1,444,096
)
NET ASSETS
Total increase (decrease) in net assets
24,360,371
(20,075,493
)
Beginning of year
698,367,267
718,442,760
End of year
$722,727,638
$698,367,267
 
(a)
Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
See notes to financial statements.
Fund Statements of Changes in Net Assets
7
Financial Highlights
(For a share outstanding throughout each period)
 
 
BlackRock Advantage CoreAlpha Bond Fund
 
Institutional
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Net asset value, beginning of year
$8.58
$8.78
$8.65
$10.32
$10.79
Net investment income(a)
0.40
0.39
0.31
0.23
0.21
Net realized and unrealized gain (loss)
0.17
(0.20
)
0.15
(1.69
)
(0.42
)
Net increase (decrease) from investment operations
0.57
0.19
0.46
(1.46
)
(0.21
)
Distributions(b)
From net investment income
(0.40
)
(0.39
)
(0.33
)
(0.13
)
(0.15
)
From net realized gain
—
—
—
—
(0.06
)
Return of capital
—
—
—
(0.08
)
(0.05
)
Total distributions
(0.40
)
(0.39
)
(0.33
)
(0.21
)
(0.26
)
Net asset value, end of year
$8.75
$8.58
$8.78
$8.65
$10.32
Total Return(c)
Based on net asset value
6.79
%
2.20
%
5.41
%
(14.24
)%
(1.98
)%
Ratios to Average Net Assets(d)(e)
Total expenses
0.29
%
0.29
%
0.30
%
0.29
%
0.30
%
Total expenses after fees waived and/or reimbursed
0.29
%
0.29
%
0.29
%
0.29
%
0.30
%
Net investment income
4.59
%
4.45
%
3.58
%
2.50
%
2.00
%
Supplemental Data
Net assets, end of year (000)
$412,658
$367,055
$367,970
$559,142
$839,388
Portfolio turnover rate of the Master Portfolio(f)
183
%
142
%
201
%
205
%
219
%
 
(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)
Includes the Fund’s share of the Master Portfolio’s allocated net expenses and/or net investment income.
(e)
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.
(f)
Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
 
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Portfolio turnover rate (excluding MDRs)
103
%
96
%
118
%
107
%
123
%
See notes to financial statements.
8
2025 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)
(For a share outstanding throughout each period)
 
 
BlackRock Advantage CoreAlpha Bond Fund (continued)
 
Investor A
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Net asset value, beginning of year
$8.58
$8.78
$8.65
$10.32
$10.79
Net investment income(a)
0.38
0.36
0.29
0.21
0.18
Net realized and unrealized gain (loss)
0.17
(0.19
)
0.14
(1.70
)
(0.42
)
Net increase (decrease) from investment operations
0.55
0.17
0.43
(1.49
)
(0.24
)
Distributions(b)
From net investment income
(0.38
)
(0.37
)
(0.30
)
(0.10
)
(0.12
)
From net realized gain
—
—
—
—
(0.06
)
Return of capital
—
—
—
(0.08
)
(0.05
)
Total distributions
(0.38
)
(0.37
)
(0.30
)
(0.18
)
(0.23
)
Net asset value, end of year
$8.75
$8.58
$8.78
$8.65
$10.32
Total Return(c)
Based on net asset value
6.53
%
1.94
%
5.15
%
(14.46
)%
(2.23
)%
Ratios to Average Net Assets(d)(e)
Total expenses
0.54
%
0.54
%
0.55
%
0.54
%
0.55
%
Total expenses after fees waived and/or reimbursed
0.54
%
0.54
%
0.54
%
0.54
%
0.55
%
Net investment income
4.33
%
4.18
%
3.35
%
2.26
%
1.74
%
Supplemental Data
Net assets, end of year (000)
$251,415
$265,350
$297,914
$322,124
$445,358
Portfolio turnover rate of the Master Portfolio(f)
183
%
142
%
201
%
205
%
219
%
 
(a)
Based on average shares outstanding.
(b)
Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)
Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.
(d)
Includes the Fund’s share of the Master Portfolio’s allocated net expenses and/or net investment income.
(e)
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.
(f)
Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
 
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Portfolio turnover rate (excluding MDRs)
103
%
96
%
118
%
107
%
123
%
See notes to financial statements.
Fund Financial Highlights
9
Financial Highlights (continued)
(For a share outstanding throughout each period)
 
 
BlackRock Advantage CoreAlpha Bond Fund (continued)
 
Investor C
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Net asset value, beginning of year
$8.58
$8.79
$8.66
$10.33
$10.80
Net investment income(a)
0.32
0.30
0.23
0.14
0.11
Net realized and unrealized gain (loss)
0.17
(0.21
)
0.14
(1.69
)
(0.43
)
Net increase (decrease) from investment operations
0.49
0.09
0.37
(1.55
)
(0.32
)
Distributions(b)
From net investment income
(0.32
)
(0.30
)
(0.24
)
(0.04
)
(0.04
)
From net realized gain
—
—
—
—
(0.06
)
Return of capital
—
—
—
(0.08
)
(0.05
)
Total distributions
(0.32
)
(0.30
)
(0.24
)
(0.12
)
(0.15
)
Net asset value, end of year
$8.75
$8.58
$8.79
$8.66
$10.33
Total Return(c)
Based on net asset value
5.75
%
1.07
%
4.36
%
(15.09
)%
(2.96
)%
Ratios to Average Net Assets(d)(e)
Total expenses
1.29
%
1.29
%
1.30
%
1.29
%
1.30
%
Total expenses after fees waived and/or reimbursed
1.29
%
1.29
%
1.30
%
1.29
%
1.29
%
Net investment income
3.64
%
3.48
%
2.64
%
1.47
%
1.01
%
Supplemental Data
Net assets, end of year (000)
$514
$453
$431
$413
$865
Portfolio turnover rate of the Master Portfolio(f)
183
%
142
%
201
%
205
%
219
%
 
(a)
Based on average shares outstanding.
(b)
Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)
Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.
(d)
Includes the Fund’s share of the Master Portfolio’s allocated net expenses and/or net investment income.
(e)
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.
(f)
Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
 
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Portfolio turnover rate (excluding MDRs)
103
%
96
%
118
%
107
%
123
%
See notes to financial statements.
10
2025 BlackRock Annual Financial Statements and Additional Information
Financial Highlights (continued)
(For a share outstanding throughout each period)
 
 
BlackRock Advantage CoreAlpha Bond Fund (continued)
 
Class K
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Net asset value, beginning of year
$8.58
$8.79
$8.66
$10.33
$10.80
Net investment income(a)
0.41
0.39
0.32
0.24
0.22
Net realized and unrealized gain (loss)
0.17
(0.21
)
0.14
(1.70
)
(0.43
)
Net increase (decrease) from investment operations
0.58
0.18
0.46
(1.46
)
(0.21
)
Distributions(b)
From net investment income
(0.41
)
(0.39
)
(0.33
)
(0.13
)
(0.15
)
From net realized gain
—
—
—
—
(0.06
)
Return of capital
—
—
—
(0.08
)
(0.05
)
Total distributions
(0.41
)
(0.39
)
(0.33
)
(0.21
)
(0.26
)
Net asset value, end of year
$8.75
$8.58
$8.79
$8.66
$10.33
Total Return(c)
Based on net asset value
6.84
%
2.13
%
5.46
%
(14.19
)%
(1.93
)%
Ratios to Average Net Assets(d)(e)
Total expenses
0.29
%
0.29
%
0.30
%
0.29
%
0.30
%
Total expenses after fees waived and/or reimbursed
0.24
%
0.24
%
0.24
%
0.24
%
0.25
%
Net investment income
4.68
%
4.54
%
3.67
%
2.57
%
2.06
%
Supplemental Data
Net assets, end of year (000)
$58,141
$65,509
$52,127
$66,102
$72,493
Portfolio turnover rate of the Master Portfolio(f)
183
%
142
%
201
%
205
%
219
%
 
(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)
Includes the Fund’s share of the Master Portfolio’s allocated net expenses and/or net investment income.
(e)
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.
(f)
Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
 
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Portfolio turnover rate (excluding MDRs)
103
%
96
%
118
%
107
%
123
%
See notes to financial statements.
Fund Financial Highlights
11
Notes to Financial Statements
 
1.
ORGANIZATION
BlackRock Funds VI (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 Delaware statutory trust. BlackRock Advantage CoreAlpha Bond Fund (the “Fund”) is a series of the Trust. The Fund is classified as a diversified fund under the 1940 Act. 
The Fund seeks to achieve its investment objective by investing all of its assets in Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”), a series of Master Investment Portfolio II (“MIP II”), an affiliate of the Fund, which has the same investment objective and strategies as the Fund. The value of the Fund’s investment in the Master Portfolio reflects the Fund’s proportionate interest in the net assets of the Master Portfolio. The performance of the Fund is directly affected by the performance of the Master Portfolio. At December 31, 2025, the percentage of the Master Portfolio owned by the Fund was 100.00%. The financial statements of the Master Portfolio, including the Schedule of Investments, are included elsewhere in this report and should be read in conjunction with the Fund’s financial statements.
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 and Investor C Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan). 
Share Class
Initial Sales Charge
CDSC
Conversion Privilege
Institutional and Class K
No
No
None
Investor A Shares
Yes
No(a)
None
Investor C Shares
No
Yes(b)
To Investor A Shares after approximately 8 years
 
(a)
Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.
(b)
A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.
The Board of Trustees of the Trust and Board of Trustees of MIP II are referred to throughout this report as the “Board” and the members are referred to as “Trustees.”
The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (“BAL” or the “Administrator”) or its affiliates, is included in a complex of funds referred to as the BlackRock Fixed-Income 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, contributions to and withdrawals from the Master Portfolio are accounted for on a trade date basis.  The Fund records its proportionate share of the Master Portfolio’s income, expenses and realized and unrealized gains and losses on a daily basis.  In addition, the Fund accrues its own expenses. 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.
Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by the Fund’s Board, the trustees who are not “interested persons” of the Fund, as defined in the 1940 Act (“Independent Trustees”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.
The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Fund, as applicable. Deferred compensation liabilities, if any, are included in the Trustees’ and Officer’s fees payable in the Statement of Assets and Liabilities and will remain as a liability of the Fund until such amounts are distributed in accordance with the Plan. Net appreciation (depreciation) in the value of participants’ deferral accounts is allocated among the participating funds in the BlackRock Fixed-Income Complex and reflected as Trustees and Officer expense on the Statement of Operations. The Trustees and Officer expense may be negative as a result of a decrease in value of the deferred accounts.
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.
12
2025 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements  (continued)
 
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 Administrator, 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 Funds’ adoption of the new standard did not have a material impact 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 policy is to value its financial instruments at fair value. The Fund records its investment in the Master Portfolio at fair value based on the Fund’s proportionate interest in the net assets of the Master Portfolio. Valuation of securities held by the Master Portfolio is discussed in Note 3 of the Master Portfolio’s Notes to Financial Statements, which are included elsewhere in this report.
4.
ADMINISTRATION AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Administration: The Trust, on behalf of the Fund, entered into an Administration Agreement with BAL, to provide general administrative services (other than investment advice and related portfolio activities). BAL has agreed to bear all of the Fund’s ordinary operating expenses, excluding, generally, investment advisory fees, distribution fees, brokerage and other expenses related to the execution of portfolio transactions, extraordinary expenses and certain other expenses which are borne by the Fund. BAL may delegate certain of its administration duties to sub-administrators. BAL is entitled to receive for these administrative services an annual fee based on the average daily net assets of the Fund as follows: 
 
Institutional
Investor A
Investor C
Class K
Administration fees - class specific
0.05
% 
0.05
% 
0.05
% 
0.05
% 
For the year ended December 31, 2025, the following table shows the class specific administration fees borne directly by each share class of the Fund: 
 
Institutional
Investor A
Investor C
Class K
Total
Administration fees — class specific
$ 194,965
$ 128,762
$ 220
$ 30,720
$ 354,667
From time to time, BAL may waive such fees in whole or in part. Any such waiver will reduce the expenses of the Fund and, accordingly, have a favorable impact on its performance.
Service and Distribution Fees:  The Trust, on behalf of the Fund, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Administrator. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of the Fund as follows: 
Share Class
Service Fees
Distribution Fees
Investor A
0.25
% 
N/A
Investor C
0.25
0.75
% 
BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder servicing and distribution services to the Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.
For the year ended December 31, 2025, the following table shows the class specific service and distribution fees borne directly by each share class of the Fund: 
Fund Name
Investor A
Investor C
Total
BlackRock Advantage CoreAlpha Bond Fund
$ 643,809
$ 4,395
$ 648,204
Other Fees:  For the year ended December 31, 2025, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares for a total of $7,785.
For the year ended December 31, 2025, affiliates received CDSCs as follows: 
Fund Name
Investor C
BlackRock Advantage CoreAlpha Bond Fund
$ 395
Expense Waivers and Reimbursements:  The fees and expenses of the Fund’s Independent Trustees, counsel to the Independent Trustees and the Fund’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Fund. BAL has contractually agreed to reimburse the Fund or provide an
Fund Notes to Financial Statements
13
Notes to Financial Statements  (continued)
 
offsetting credit against the administration fees paid by the Fund in an amount equal to these independent expenses through June 30, 2026. The amount waived is included in fees waived and/or reimbursed by the Administrator in the Statement of Operations. For the year ended December 31, 2025, the amount waived was $11,463.
BAL has contractually agreed to waive 0.05% of the administration fee payable to BAL applicable to Class K Shares of the Fund through June 30, 2026. The amount waived is included in fees waived and/or reimbursed by the Administrator in the Statement of Operations. For the year ended December 31, 2025, the amount waived was $30,720.
Interfund Lending: Prior to March 3, 2025, in accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), the Fund could participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. Effective March 3, 2025, the Interfund Lending Program was not renewed but remains available for renewal in the future.
During the period ended March 3, 2025, the Fund did not participate in the Interfund Lending Program.
Trustees and Officers:  Certain trustees and/or officers of the Trust are directors and/or officers of BlackRock, Inc. (“BlackRock”) or its affiliates.
5.
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 December 31, 2025, 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 net asset value (“NAV”).
The tax character of distributions paid was as follows: 
Fund Name
Year Ended
12/31/25
Year Ended
12/31/24
BlackRock Advantage CoreAlpha Bond Fund
Ordinary income
$ 32,253,083
$ 30,559,839
As of December 31, 2025, the tax components of accumulated earnings (loss) were as follows: 
Fund Name
Non-Expiring
Capital Loss
Carryforwards(a)
Net Unrealized
Gains (Losses)(b)
Qualified
Late-Year
Ordinary Losses(c)
Total
BlackRock Advantage CoreAlpha Bond Fund
$ (167,022,120
)
$ (28,692,654
)
$ (451,235
)
$ (196,166,009
)
 
(a)
Amounts available to offset future realized capital gains.
(b)
The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and straddles, dividends payable,
the realization for tax purposes of unrealized gains (losses) on certain futures and foreign currency exchange contracts and amortization and accretion methods of premiums and
discounts on fixed income securities.
(c)
The Fund has elected to defer these qualified late-year losses and recognize such losses in the next taxable year.
6.
 CAPITAL SHARE TRANSACTIONS 
Transactions in capital shares for each class were as follows: 
 
Year Ended
12/31/25
Year Ended
12/31/24
Fund Name / Share Class 
Shares 
Amounts 
Shares 
Amounts 
BlackRock Advantage CoreAlpha Bond Fund 
Institutional
Shares sold
8,582,742
$ 73,993,820
9,958,592
$ 87,068,769
Shares issued in reinvestment of distributions
2,075,597
18,056,902
1,836,577
15,925,448
Shares redeemed
(6,275,410)
(54,324,989)
(10,905,084)
(93,284,468)
 
4,382,929
$ 37,725,733
890,085
$ 9,709,749
14
2025 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements  (continued)
 
 
Year Ended
12/31/25
Year Ended
12/31/24
Fund Name / Share Class (continued)
Shares 
Amounts 
Shares 
Amounts 
BlackRock Advantage CoreAlpha Bond Fund (continued)
Investor A
Shares sold and automatic conversion of shares
1,036,300
$ 8,983,151
1,153,153
$ 10,001,978
Shares issued in reinvestment of distributions
1,262,443
10,978,549
1,321,667
11,460,396
Shares redeemed
(4,493,987)
(38,965,180)
(5,463,638)
(47,414,714)
 
(2,195,244)
$ (19,003,480)
(2,988,818)
$ (25,952,340)
Investor C
Shares sold
14,757
$ 128,537
25,706
$ 223,087
Shares issued in reinvestment of distributions
1,775
15,447
2,155
18,707
Shares redeemed and automatic conversion of shares
(10,579)
(91,039)
(24,128)
(207,560)
 
5,953
$ 52,945
3,733
$ 34,234
Class K
Shares sold
1,209,461
$ 10,460,010
3,682,765
$ 31,953,551
Shares issued in reinvestment of distributions
330,295
2,874,393
301,299
2,613,677
Shares redeemed
(2,530,009)
(22,023,339)
(2,284,269)
(19,802,967)
 
(990,253)
$ (8,688,936)
1,699,795
$ 14,764,261
 
1,203,385
$ 10,086,262
(395,205)
$ (1,444,096)
As of December 31, 2025, BlackRock HoldCo 2, Inc., an affiliate of the Fund, owned 1,924  Investor C Shares of the Fund.
7.
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.
Fund Notes to Financial Statements
15
Report of Independent Registered Public Accounting Firm
 
To the Board of Trustees of BlackRock Funds VI and Shareholders of BlackRock Advantage CoreAlpha Bond Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of BlackRock Advantage CoreAlpha Bond Fund (the "Fund") as of December 31, 2025, the related statement of operations for the year ended December 31, 2025, the statement of changes in net assets for each of the two years in the period ended December 31, 2025, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2025 (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 December 31, 2025, 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 December 31, 2025 and the financial highlights for each of the five years in the period ended December 31, 2025 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 the security owned as of December 31, 2025 by correspondence with the accounting agent. We believe that our audits provide a reasonable basis for our opinion.
/s/PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
February 24, 2026
We have served as the auditor of one or more BlackRock investment companies since 2000.
16
2025 BlackRock Annual Financial Statements and Additional Information
Important Tax Information (unaudited)
 
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 December 31, 2025: 
Fund Name
Federal Obligation
Interest
BlackRock Advantage CoreAlpha Bond Fund
$ 6,068,912
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 December 31, 2025:  
Fund Name
Interest
Dividends
BlackRock Advantage CoreAlpha Bond Fund
$ 31,573,334
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 December 31, 2025: 
Fund Name
Interest-
Related
Dividends
BlackRock Advantage CoreAlpha Bond Fund
$ 31,598,087
Important Tax Information
17
Schedule of Investments
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
 
Security
 
Par
(000)
Value
Asset-Backed Securities
ACHV ABS Trust, Series 2024-1PL, Class B, 6.34%,
04/25/31(a)
$
291
$ 295,071
Affirm Asset Securitization Trust(a)
 
Series 2023-X1, Class D, 9.55%, 11/15/28
 
381
382,826
Series 2024-A, Class B, 5.93%, 02/15/29
 
1,250
1,251,971
Series 2024-B, Class C, 5.06%, 09/15/29
 
3,500
3,504,411
Series 2024-X1, Class D, 7.29%, 05/15/29
 
1,750
1,751,066
Series 2024-X2, Class C, 5.62%, 12/17/29
 
1,050
1,051,962
Series 2024-X2, Class D, 6.08%, 12/17/29
 
525
529,495
Series 2025-X1, Class B, 5.19%, 04/15/30
 
2,000
2,005,596
Series 2025-X1, Class D, 6.11%, 04/15/30
 
2,000
2,017,821
Series 2025-X2, Class C, 4.93%, 10/15/30
 
750
751,364
Affirm Master Trust(a)
 
Series 2025-3A, Class B, 4.75%, 10/16/34
 
1,460
1,457,842
Series 2025-3A, Class C, 4.89%, 10/16/34
 
2,600
2,600,061
Blue Bridge Funding LLC, Series 2023-1A, Class A,
7.37%, 11/15/30(a)
 
166
166,975
Carvana Auto Receivables Trust
 
Series 2021-N2, Class B, 0.75%, 03/10/28
 
124
121,598
Series 2021-N2, Class C, 1.07%, 03/10/28
 
349
341,398
Chase Funding Trust, Series 2004-2, Class 2A2, (1-mo.
Term SOFR + 0.61%), 4.35%, 02/26/35(b)
 
48
47,437
CWABS, Inc. Asset-Backed Certificates, Series 2004-1,
Class M1, (1-mo. Term SOFR + 0.86%), 4.60%,
03/25/34(b)
 
4
3,924
Drive Auto Receivables Trust, Series 2024-2, Class C,
4.67%, 05/17/32
 
790
795,019
Louisiana Local Government Environmental Facilities &
Community Development Authority, Series 2022-
ELL, Class A3, 4.28%, 02/01/36
 
85
84,322
NetCredit Combined Receivables LLC(a)
 
Series 2024-A, Class A, 7.43%, 10/21/30
 
14
13,836
Series 2024-A, Class B, 8.31%, 10/21/30
 
1,000
1,011,290
Series 2025-A, Class A, 7.29%, 10/20/31
 
669
683,070
OnDeck Asset Securitization Trust IV LLC, Series 2023-
1A, Class A, 7.00%, 08/19/30(a)
 
1,460
1,474,881
OneMain Financial Issuance Trust, Series 2019-2A,
Class A, 3.14%, 10/14/36(a)
 
5,690
5,609,502
Santander Drive Auto Receivables Trust,
Series 2024-1, Class C, 5.45%, 03/15/30
 
510
516,090
Sunbit Asset Securitization Trust, Series 2025-1,
Class A, 5.36%, 07/15/30
 
1,670
1,681,046
Upstart Securitization Trust, Series 2025-3, Class B,
5.02%, 09/20/35(a)
 
900
896,645
Westlake Automobile Receivables Trust(a)
 
Series 2023-1A, Class D, 6.79%, 11/15/28
 
2,880
2,945,659
Series 2023-4A, Class C, 6.64%, 11/15/28
 
1,080
1,101,581
Security
 
Par
(000)
Value
Asset-Backed Securities (continued)
Westlake Automobile Receivables Trust(a) (continued)
 
Series 2024-1A, Class D, 6.02%, 10/15/29
$
1,360
$ 1,394,334
Series 2024-2A, Class D, 5.91%, 04/15/30
 
2,030
2,072,826
Total Asset-Backed Securities — 5.3%
(Cost: $38,469,390)
38,560,919
 
 
 
 
Shares
 
Common Stocks
Financial Services(c)(d) — 0.0%
Edcon Holdco 1
 
1,643,590
1
Edcon Holdco 2
 
163,560
—
 
 
1
Total Common Stocks — 0.0%
(Cost: $ — )
1
 
 
 
Par
(000)
 
Corporate Bonds
Advertising Agencies — 0.0%
Omnicom Group, Inc., 3.38%, 03/01/41(a)
$
78
59,052
Aerospace & Defense — 0.3%
Bombardier, Inc.(a)
 
7.25%, 07/01/31
 
168
179,029
6.75%, 06/15/33
 
276
291,728
GE Capital International Funding Co. Unlimited Co.,
4.42%, 11/15/35
 
250
243,960
General Dynamics Corp., 2.25%, 06/01/31
 
550
500,264
General Electric Co., 4.90%, 01/29/36
 
245
248,742
TransDigm, Inc.(a)
 
7.13%, 12/01/31
 
187
196,531
6.63%, 03/01/32
 
187
194,558
6.38%, 05/31/33
 
350
359,145
6.25%, 01/31/34(e)
 
15
15,565
6.75%, 01/31/34(e)
 
40
41,667
 
 
2,271,189
Air Freight & Logistics — 0.0%
Stonepeak Nile Parent LLC, 7.25%, 03/15/32(a)
 
148
156,628
Automobile Components(a) — 0.1%
Garrett Motion Holdings, Inc./Garrett LX I SARL,
7.75%, 05/31/32
 
259
275,283
18
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Automobile Components (continued)
IHO Verwaltungs GmbH, (8.00% Cash or 8.75% PIK),
8.00%, 11/15/32(f)
$
110
$ 115,863
Phinia, Inc., 6.63%, 10/15/32
 
69
71,446
 
 
462,592
Automobiles — 0.2%
American Honda Finance Corp., 4.90%, 03/13/29
 
450
459,809
Aston Martin Capital Holdings Ltd., 10.00%,
03/31/29(a)
 
211
196,387
Carvana Co., (11.00% Cash or 13.00% PIK), 9.00%,
06/01/30(a)(f)
 
126
131,740
New Flyer Holdings, Inc., 9.25%, 07/01/30(a)
 
196
210,665
Nissan Motor Acceptance Co. LLC(a)
 
6.95%, 09/15/26
 
61
61,671
5.63%, 09/29/28
 
55
55,155
6.13%, 09/30/30(e)
 
170
170,024
Nissan Motor Co. Ltd.(a)
 
7.50%, 07/17/30
 
106
111,230
7.75%, 07/17/32
 
215
228,375
8.13%, 07/17/35
 
100
106,262
 
 
1,731,318
Banks — 2.2%
Bank of Montreal
 
2.65%, 03/08/27(e)
 
435
428,708
5.72%, 09/25/28
 
20
20,852
(1-day SOFR + 0.88%), 4.57%, 09/10/27(b)
 
215
215,804
Canadian Imperial Bank of Commerce, 5.26%,
04/08/29
 
300
310,666
Fifth Third Bancorp, (1-day SOFR + 2.34%), 6.34%,
07/27/29(b)
 
140
147,437
Freedom Mortgage Corp., 12.25%, 10/01/30(a)
 
81
89,841
HSBC Holdings PLC, (1-day SOFR + 1.43%), 5.13%,
11/06/36(b)
 
485
486,326
ING Groep NV(b)
 
(1-day SOFR + 1.56%), 6.08%, 09/11/27(e)
 
855
866,386
(1-day SOFR + 2.09%), 6.11%, 09/11/34
 
545
588,838
Inter-American Development Bank, 4.50%, 05/15/26
 
1,730
1,734,399
JPMorgan Chase & Co., (1-day SOFR + 1.64%),
5.58%, 07/23/36(b)
 
320
331,024
M&T Bank Corp., (1-day SOFR + 2.80%), 7.41%,
10/30/29(b)
 
1,410
1,529,729
Morgan Stanley Private Bank NA, (1-day SOFR +
1.08%), 4.73%, 07/18/31(b)
 
1,825
1,849,998
Royal Bank of Canada
 
3.63%, 05/04/27
 
630
629,273
5.20%, 08/01/28
 
40
41,237
5.00%, 02/01/33
 
10
10,294
Santander U.K. Group Holdings PLC, (3-mo. SOFR US
+ 1.66%), 3.82%, 11/03/28(b)
 
240
238,411
Truist Financial Corp., (1-day SOFR + 0.86%), 1.89%,
06/07/29(b)
 
10
9,500
U.S. Bancorp(b)
 
(1-day SOFR + 1.41%), 5.42%, 02/12/36(e)
 
965
1,002,954
(1-day SOFR + 1.86%), 5.68%, 01/23/35
 
155
163,665
Wells Fargo & Co.(b)
 
(1-day SOFR + 1.38%), 5.21%, 12/03/35
 
775
791,687
(1-day SOFR + 1.50%), 3.35%, 03/02/33
 
433
404,135
(1-day SOFR + 1.78%), 5.50%, 01/23/35
 
105
109,554
(1-day SOFR + 1.79%), 6.30%, 10/23/29
 
308
325,431
(1-day SOFR + 1.98%), 4.81%, 07/25/28
 
840
849,406
(1-day SOFR + 2.06%), 6.49%, 10/23/34
 
180
199,250
(1-day SOFR + 2.10%), 4.90%, 07/25/33
 
409
415,362
Security
 
Par
(000)
Value
Banks (continued)
Wells Fargo & Co.(b) (continued)
 
(1-day SOFR + 2.53%), 3.07%, 04/30/41
$
70
$ 54,291
(3-mo. CME Term SOFR + 1.26%), 2.57%, 02/11/31
 
1,374
1,283,295
(3-mo. CME Term SOFR + 1.43%), 2.88%, 10/30/30
 
80
76,103
(3-mo. CME Term SOFR + 4.03%), 4.48%, 04/04/31
 
535
538,535
(3-mo. CME Term SOFR + 4.50%), 5.01%, 04/04/51
 
360
328,990
Westpac Banking Corp., 2.96%, 11/16/40
 
120
91,428
 
 
16,162,809
Beverages — 0.3%
Coca-Cola Co.
 
3.00%, 03/05/51
 
90
60,095
5.30%, 05/13/54
 
610
598,792
5.40%, 05/13/64
 
400
388,549
Diageo Capital PLC
 
2.13%, 04/29/32
 
380
330,672
5.50%, 01/24/33
 
725
763,438
PepsiCo, Inc., 4.65%, 02/15/53
 
365
321,477
 
 
2,463,023
Biotechnology — 0.6%
Amgen, Inc.
 
2.60%, 08/19/26
 
800
793,799
5.65%, 03/02/53
 
165
161,568
Genmab AS(a)
 
6.25%, 12/15/32
 
200
204,969
7.25%, 12/15/33
 
210
220,586
Regeneron Pharmaceuticals, Inc., 1.75%, 09/15/30
 
2,440
2,176,766
Royalty Pharma PLC
 
5.40%, 09/02/34
 
500
512,163
5.20%, 09/25/35
 
190
190,961
 
 
4,260,812
Building Materials — 0.4%
Carlisle Cos., Inc., 5.55%, 09/15/40(e)
 
100
101,339
CRH America Finance, Inc., 5.50%, 01/09/35
 
1,235
1,285,320
Eagle Materials, Inc., 2.50%, 07/01/31
 
555
504,002
Martin Marietta Materials, Inc., 5.15%, 12/01/34
 
620
632,589
Masco Corp., 2.00%, 10/01/30
 
160
142,761
Trane Technologies Financing Ltd., 4.50%, 03/21/49
 
95
81,696
 
 
2,747,707
Building Products — 0.1%
Home Depot, Inc.
 
5.40%, 09/15/40
 
200
206,594
3.13%, 12/15/49
 
110
74,975
5.40%, 06/25/64
 
30
28,671
Lowe’s Cos., Inc.
 
3.35%, 04/01/27
 
280
277,981
5.80%, 09/15/62
 
55
53,731
QXO Building Products, Inc., 6.75%, 04/30/32(a)
 
280
292,437
 
 
934,389
Capital Markets — 1.3%
Ameriprise Financial, Inc., 5.70%, 12/15/28
 
720
754,697
Ares Capital Corp.
 
2.15%, 07/15/26
 
352
347,481
2.88%, 06/15/28
 
425
406,172
ARES Capital Corp., 5.10%, 01/15/31
 
200
197,542
Ares Management Corp., 5.60%, 10/11/54
 
463
438,551
Bank of New York Mellon Corp., (1-day SOFR +
1.51%), 4.71%, 02/01/34(b)
 
270
270,977
Blue Owl Finance LLC, 6.25%, 04/18/34
 
970
1,000,259
Brookfield Capital Finance LLC, 6.09%, 06/14/33
 
145
155,060
Master Portfolio Schedule of Investments
19
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Capital Markets (continued)
Brookfield Finance, Inc.
 
5.68%, 01/15/35
$
500
$ 517,075
5.33%, 01/15/36
 
275
275,392
Charles Schwab Corp.
 
5.88%, 08/24/26
 
415
419,542
2.45%, 03/03/27
 
45
44,290
3.20%, 01/25/28
 
4
3,945
1.65%, 03/11/31
 
3
2,631
2.30%, 05/13/31
 
13
11,769
1.95%, 12/01/31
 
105
91,947
2.90%, 03/03/32
 
4
3,663
(1-day SOFR + 1.88%), 6.20%, 11/17/29(b)
 
358
378,636
(1-day SOFR + 2.21%), 5.64%, 05/19/29(b)
 
92
95,505
(1-day SOFR + 2.50%), 5.85%, 05/19/34(b)
 
31
33,207
FS KKR Capital Corp.
 
2.63%, 01/15/27
 
800
777,919
6.88%, 08/15/29(e)
 
730
735,900
6.13%, 01/15/30(e)
 
179
176,194
Icahn Enterprises LP/Icahn Enterprises Finance Corp.
 
9.75%, 01/15/29(e)
 
108
107,670
10.00%, 11/15/29(a)
 
106
105,925
9.00%, 06/15/30(e)
 
96
91,764
Jane Street Group/JSG Finance, Inc., 6.75%,
05/01/33(a)
 
66
68,891
LPL Holdings, Inc., 5.65%, 03/15/35
 
945
968,626
Osaic Holdings, Inc.(a)
 
6.75%, 08/01/32
 
25
26,115
8.00%, 08/01/33
 
15
15,595
Stonex Escrow Issuer LLC, 6.88%, 07/15/32(a)
 
90
93,351
StoneX Group, Inc., 7.88%, 03/01/31(a)
 
322
342,099
VFH Parent LLC/Valor Co-Issuer, Inc., 7.50%,
06/15/31(a)
 
100
104,748
 
 
9,063,138
Chemicals — 0.3%
Air Products and Chemicals, Inc., 2.70%, 05/15/40
 
87
65,254
CVR Partners LP/CVR Nitrogen Finance Corp., 6.13%,
06/15/28(a)(e)
 
193
193,524
Perimeter Holdings LLC, 01/15/34(a)(g)
 
70
69,540
Rain Carbon, Inc., 12.25%, 09/01/29(a)(e)
 
154
160,366
RPM International, Inc.
 
3.75%, 03/15/27
 
105
104,515
2.95%, 01/15/32
 
227
205,750
Sherwin-Williams Co., 5.15%, 08/15/35
 
1,400
1,424,648
SK Invictus Intermediate II SARL, 5.00%, 10/30/29(a)
 
234
231,706
 
 
2,455,303
Commercial Services & Supplies — 0.7%
ADT Security Corp., 5.88%, 10/15/33(a)
 
150
151,859
Belron U.K. Finance PLC, 5.75%, 10/15/29(a)
 
136
138,882
Ford Foundation
 
Series 2020, 2.42%, 06/01/50(e)
 
5
2,975
Series 2020, 2.82%, 06/01/70
 
30
16,913
FTAI Aviation Investors LLC, 7.00%, 06/15/32(a)
 
176
185,021
Georgetown University, Series 20A, 2.94%, 04/01/50
 
27
17,342
Graham Holdings Co., 5.63%, 12/01/33(a)
 
220
222,116
Hertz Corp., 12.63%, 07/15/29(a)(e)
 
63
63,546
Massachusetts Institute of Technology, 3.07%,
04/01/52
 
264
174,266
Northwestern University, Series 2020, 2.64%, 12/01/50
 
266
166,669
President and Fellows of Harvard College, 2.52%,
10/15/50(e)
 
54
32,885
Rockefeller Foundation, Series 2020, 2.49%, 10/01/50
 
72
43,523
Security
 
Par
(000)
Value
Commercial Services & Supplies (continued)
S&P Global, Inc., 4.80%, 12/04/35(a)
$
285
$ 284,122
TR Finance LLC, 3.35%, 05/15/26
 
800
796,751
United Rentals North America, Inc., 5.38%, 11/15/33(a)
 
145
144,897
University of Chicago
 
Series 20B, 2.76%, 04/01/45
 
148
116,987
Series C, 2.55%, 04/01/50
 
157
102,106
University of Southern California
 
4.98%, 10/01/53(e)
 
10
9,186
Series 21A, 2.95%, 10/01/51
 
190
123,380
Verisk Analytics, Inc.
 
4.13%, 03/15/29
 
1,056
1,053,908
5.25%, 06/05/34
 
1,170
1,197,913
Yale University, Series 2020, 2.40%, 04/15/50
 
272
163,119
 
 
5,208,366
Communications Equipment — 0.4%
CommScope LLC(a)
 
8.25%, 03/01/27
 
82
82,637
9.50%, 12/15/31(e)
 
170
171,707
Motorola Solutions, Inc.
 
4.60%, 05/23/29(e)
 
260
263,121
5.40%, 04/15/34
 
625
645,400
5.55%, 08/15/35
 
230
239,016
5.50%, 09/01/44
 
927
903,104
Viasat, Inc.(a)
 
6.50%, 07/15/28
 
216
210,005
7.50%, 05/30/31
 
329
312,812
 
 
2,827,802
Construction & Engineering(a) — 0.1%
AECOM, 6.00%, 08/01/33
 
66
67,641
HTA Group Ltd., 7.50%, 06/04/29
 
204
211,013
Tutor Perini Corp., 11.88%, 04/30/29(e)
 
108
119,897
 
 
398,551
Consumer Discretionary — 0.3%
Automatic Data Processing, Inc., 4.75%, 05/08/32
 
680
696,455
Quanta Services, Inc.
 
2.90%, 10/01/30
 
890
833,008
5.10%, 08/09/35
 
360
360,770
3.05%, 10/01/41
 
605
448,040
RELX Capital, Inc., 5.25%, 03/27/35
 
120
123,852
 
 
2,462,125
Consumer Finance — 1.2%
American Express Co.
 
4.05%, 05/03/29
 
186
186,573
(1-day SOFR + 1.00%), 5.10%, 02/16/28(b)
 
720
728,363
(1-day SOFR + 1.93%), 5.63%, 07/28/34(b)
 
255
266,317
(1-day SOFR Index + 1.32%), 5.44%, 01/30/36(b)
 
1,155
1,199,663
Atlanticus Holdings Corp., 9.75%, 09/01/30(a)(e)
 
152
152,190
Capital One Financial Corp.(b)
 
(1-day SOFR + 1.56%), 5.46%, 07/26/30
 
960
994,865
(1-day SOFR + 2.04%), 6.18%, 01/30/36
 
380
396,675
(1-day SOFR + 2.37%), 5.27%, 05/10/33
 
105
107,692
(1-day SOFR + 2.64%), 6.31%, 06/08/29
 
93
97,599
(1-day SOFR Index + 3.37%), 7.96%, 11/02/34
 
710
837,087
Enova International, Inc.(a)
 
11.25%, 12/15/28(e)
 
132
139,594
9.13%, 08/01/29
 
196
208,635
EZCORP, Inc., 7.38%, 04/01/32(a)
 
55
58,353
goeasy Ltd.(a)
 
9.25%, 12/01/28
 
223
229,296
7.63%, 07/01/29
 
125
123,602
20
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Consumer Finance (continued)
goeasy Ltd.(a) (continued)
 
7.38%, 10/01/30
$
105
$ 101,042
Mastercard, Inc.
 
4.55%, 01/15/35
 
385
384,935
2.95%, 03/15/51
 
1,580
1,037,431
OneMain Finance Corp.
 
6.63%, 05/15/29
 
115
119,111
7.88%, 03/15/30
 
195
206,176
7.50%, 05/15/31
 
201
211,482
S&P Global, Inc.
 
5.25%, 09/15/33
 
95
99,761
2.30%, 08/15/60
 
463
234,137
SLM Corp., 6.50%, 01/31/30
 
31
32,087
Synchrony Financial, 7.25%, 02/02/33
 
277
297,557
Visa, Inc., 3.65%, 09/15/47
 
385
300,313
 
 
8,750,536
Consumer Staples Distribution & Retail — 0.4%
Costco Wholesale Corp., 1.75%, 04/20/32(e)
 
160
138,790
Kroger Co., 5.00%, 09/15/34
 
240
241,326
U.S. Foods, Inc.(a)
 
7.25%, 01/15/32
 
125
131,391
5.75%, 04/15/33
 
152
154,826
United Natural Foods, Inc., 6.75%, 10/15/28(a)(e)
 
218
218,205
Walmart, Inc.
 
4.90%, 04/28/35(e)
 
1,595
1,639,688
4.50%, 09/09/52
 
200
176,149
 
 
2,700,375
Containers & Packaging — 0.2%
Ardagh Metal Packaging Finance USA LLC/Ardagh
Metal Packaging Finance PLC, 4.00%, 09/01/29(a)
 
313
294,654
Packaging Corp. of America
 
5.70%, 12/01/33
 
420
443,062
4.05%, 12/15/49
 
900
713,441
 
 
1,451,157
Distributors — 0.1%
WW Grainger, Inc., 4.45%, 09/15/34
 
880
872,123
Diversified REITs — 0.6%
American Tower Corp.
 
5.80%, 11/15/28
 
280
292,300
5.00%, 01/31/30
 
60
61,437
5.40%, 01/31/35
 
70
72,055
Crown Castle, Inc., 2.10%, 04/01/31
 
505
445,685
ERP Operating LP, 4.65%, 09/15/34
 
330
326,527
GLP Capital LP/GLP Financing II, Inc.
 
5.63%, 09/15/34
 
500
507,274
5.75%, 11/01/37
 
200
198,923
Iron Mountain, Inc.(a)
 
7.00%, 02/15/29
 
90
92,449
6.25%, 01/15/33
 
94
94,787
Millrose Properties, Inc.(a)
 
6.38%, 08/01/30
 
55
56,277
6.25%, 09/15/32
 
221
222,985
Prologis LP, 5.25%, 06/15/53
 
145
137,783
Rithm Capital Corp.(a)
 
8.00%, 04/01/29
 
273
280,289
8.00%, 07/15/30
 
90
92,040
VICI Properties LP
 
5.75%, 04/01/34
 
930
959,758
Security
 
Par
(000)
Value
Diversified REITs (continued)
VICI Properties LP (continued)
 
5.63%, 04/01/35
$
610
$ 622,925
5.63%, 05/15/52
 
77
71,971
 
 
4,535,465
Diversified Telecommunication Services — 1.3%
AT&T, Inc.
 
1.70%, 03/25/26
 
924
919,326
4.55%, 11/01/32
 
2,200
2,185,693
4.85%, 03/01/39
 
385
366,115
Cisco Systems, Inc., 4.95%, 02/24/32
 
1,000
1,032,048
Connect Finco SARL/Connect U.S. Finco LLC, 9.00%,
09/15/29(a)
 
280
297,007
EchoStar Corp.
 
(6.75% Cash or 6.75% PIK), 6.75%, 11/30/30(f)
 
360
368,809
10.75%, 11/30/29
 
325
359,386
Frontier Communications Holdings LLC, 6.75%,
05/01/29(a)
 
351
353,658
GCI LLC, 4.75%, 10/15/28(a)
 
116
113,131
Level 3 Financing, Inc.(a)
 
4.25%, 07/01/28(e)
 
156
148,980
6.88%, 06/30/33
 
310
317,216
7.00%, 03/31/34
 
135
139,127
Lumen Technologies, Inc., 10.00%, 10/15/32(a)
 
54
54,270
Sprint Capital Corp., 8.75%, 03/15/32
 
740
894,924
Telecom Italia Capital SA
 
6.00%, 09/30/34(e)
 
70
71,849
7.20%, 07/18/36
 
91
98,686
7.72%, 06/04/38(e)
 
92
101,910
Verizon Communications, Inc.
 
5.25%, 04/02/35(e)
 
910
924,913
5.40%, 07/02/37(a)
 
812
820,696
 
 
9,567,744
Electric Utilities — 2.5%
AEP Texas, Inc.
 
5.25%, 05/15/52
 
140
128,372
Series I, 2.10%, 07/01/30
 
260
236,797
AEP Transmission Co. LLC
 
3.15%, 09/15/49
 
30
20,280
Series O, 4.50%, 06/15/52
 
130
110,199
Alabama Power Co., 3.45%, 10/01/49
 
370
263,144
Alpha Generation LLC, 6.25%, 01/15/34(a)
 
29
29,260
Ameren Illinois Co., 5.55%, 07/01/54
 
75
73,742
Appalachian Power Co., Series X, 3.30%, 06/01/27
 
90
89,141
Arizona Public Service Co.
 
2.95%, 09/15/27(e)
 
300
295,229
5.70%, 08/15/34
 
50
52,561
Atlantic City Electric Co., 2.30%, 03/15/31
 
370
335,326
Baltimore Gas and Electric Co., 2.90%, 06/15/50
 
170
108,740
Berkshire Hathaway Energy Co., 4.45%, 01/15/49
 
200
166,773
Black Hills Corp., 6.00%, 01/15/35
 
150
159,967
CenterPoint Energy Houston Electric LLC
 
5.20%, 10/01/28
 
30
30,973
Series AH, 3.60%, 03/01/52
 
55
40,025
Series AJ, 4.85%, 10/01/52
 
75
67,082
Series AQ, 4.95%, 08/15/35
 
125
125,890
Commonwealth Edison Co.
 
2.20%, 03/01/30
 
190
175,935
4.00%, 03/01/49
 
90
70,142
Series 130, 3.13%, 03/15/51
 
70
46,422
Connecticut Light and Power Co., 4.95%, 01/15/30
 
80
82,071
Master Portfolio Schedule of Investments
21
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Electric Utilities (continued)
Consolidated Edison Co. of New York, Inc.
 
5.70%, 05/15/54
$
130
$ 129,580
Series 2006-A, 5.85%, 03/15/36
 
500
531,252
Constellation Energy Generation LLC, 5.80%,
03/01/33
 
175
186,756
Consumers Energy Co.
 
4.60%, 05/30/29
 
50
50,812
4.63%, 05/15/33(e)
 
110
110,326
2.65%, 08/15/52
 
72
44,504
4.20%, 09/01/52
 
60
48,161
Dominion Energy, Inc.
 
5.38%, 11/15/32
 
140
145,345
Series C, 3.38%, 04/01/30
 
58
55,961
DTE Electric Co., Series B, 3.65%, 03/01/52
 
217
159,756
Duke Energy Carolinas LLC, 5.35%, 01/15/53
 
100
95,932
Duke Energy Corp.
 
2.65%, 09/01/26
 
300
297,442
4.85%, 01/05/29
 
180
183,527
4.20%, 06/15/49
 
530
417,128
5.00%, 08/15/52
 
60
52,970
Duke Energy Florida LLC, 5.88%, 11/15/33
 
85
91,757
Duke Energy Indiana LLC
 
5.25%, 03/01/34
 
60
62,140
5.40%, 04/01/53
 
20
18,992
Duke Energy Ohio, Inc., 4.30%, 02/01/49
 
100
81,732
Duke Energy Progress LLC, 5.10%, 03/15/34
 
50
51,518
Entergy Arkansas LLC, 5.75%, 06/01/54
 
30
30,236
Entergy Mississippi LLC
 
5.00%, 09/01/33
 
180
182,941
5.85%, 06/01/54
 
40
40,305
Entergy Texas, Inc., 3.55%, 09/30/49
 
220
156,847
Evergy Kansas Central, Inc., 3.45%, 04/15/50
 
130
91,646
Evergy Metro, Inc., 5.40%, 04/01/34
 
35
36,410
Evergy, Inc., 2.90%, 09/15/29
 
50
47,645
Eversource Energy, Series M, 3.30%, 01/15/28
 
200
196,437
Exelon Corp.
 
5.15%, 03/15/29
 
45
46,267
5.60%, 03/15/53
 
70
67,841
FirstEnergy Transmission LLC, 5.00%, 01/15/35
 
25
25,050
Florida Power & Light Co.
 
4.80%, 05/15/33
 
55
56,069
4.05%, 10/01/44
 
300
249,888
3.15%, 10/01/49
 
40
27,394
2.88%, 12/04/51
 
90
57,364
5.60%, 02/15/66
 
55
54,137
Georgia Power Co., 4.85%, 03/15/31
 
300
307,798
Idaho Power Co., 5.80%, 04/01/54
 
70
71,029
Indiana Michigan Power Co., 5.63%, 04/01/53
 
50
49,474
Interstate Power and Light Co.
 
2.30%, 06/01/30
 
20
18,360
5.60%, 06/29/35
 
20
20,814
Kentucky Utilities Co., 3.30%, 06/01/50
 
60
41,304
MidAmerican Energy Co.
 
3.10%, 05/01/27
 
100
99,032
3.15%, 04/15/50
 
60
40,621
2.70%, 08/01/52
 
105
64,166
National Grid PLC, 5.42%, 01/11/34
 
90
93,091
National Rural Utilities Cooperative Finance Corp.
 
3.70%, 03/15/29
 
330
325,887
5.15%, 06/15/29
 
80
82,736
Nevada Power Co., 6.00%, 03/15/54
 
90
92,213
Security
 
Par
(000)
Value
Electric Utilities (continued)
NextEra Energy Capital Holdings, Inc.
 
3.55%, 05/01/27
$
245
$ 243,540
2.25%, 06/01/30
 
200
183,929
5.00%, 07/15/32
 
50
51,213
5.55%, 03/15/54(e)
 
80
77,272
Northern States Power Co.
 
5.40%, 03/15/54
 
85
82,400
5.65%, 06/15/54
 
70
70,468
NSTAR Electric Co.
 
3.10%, 06/01/51
 
110
73,521
4.95%, 09/15/52
 
90
81,151
Oglethorpe Power Corp., 6.20%, 12/01/53
 
65
66,654
Ohio Power Co., 5.65%, 06/01/34
 
150
156,413
Oklahoma Gas and Electric Co., 5.60%, 04/01/53
 
65
63,664
Oncor Electric Delivery Co. LLC
 
3.80%, 06/01/49
 
120
90,498
4.60%, 06/01/52
 
40
33,656
4.95%, 09/15/52
 
70
62,341
Pacific Gas and Electric Co.
 
3.00%, 06/15/28
 
100
96,964
4.55%, 07/01/30
 
65
64,721
6.95%, 03/15/34
 
10
11,121
3.30%, 08/01/40
 
90
68,126
4.95%, 07/01/50
 
270
228,213
3.50%, 08/01/50
 
190
128,117
6.75%, 01/15/53
 
70
74,447
5.90%, 10/01/54
 
95
91,048
PacifiCorp, 4.13%, 01/15/49
 
280
208,698
PECO Energy Co., 3.05%, 03/15/51
 
70
45,656
PPL Electric Utilities Corp.
 
4.85%, 02/15/34
 
145
146,533
5.25%, 05/15/53
 
130
124,552
Public Service Co. of Colorado
 
4.05%, 09/15/49
 
20
15,615
5.75%, 05/15/54
 
130
130,105
Public Service Co. of Oklahoma, 5.20%, 01/15/35
 
150
151,622
Public Service Electric and Gas Co.
 
3.10%, 03/15/32
 
85
78,752
5.20%, 03/01/34
 
295
303,869
2.05%, 08/01/50
 
105
56,692
Puget Sound Energy, Inc., 5.45%, 06/01/53
 
100
96,103
San Diego Gas & Electric Co., 5.35%, 04/01/53
 
95
89,741
Sempra
 
3.70%, 04/01/29
 
140
137,789
5.50%, 08/01/33(e)
 
100
104,428
Southern California Edison Co.
 
5.45%, 06/01/31
 
240
248,176
3.65%, 02/01/50
 
100
69,924
5.75%, 04/15/54
 
20
18,751
Series C, 4.13%, 03/01/48
 
370
280,825
Southern Co.
 
3.25%, 07/01/26
 
350
348,791
5.70%, 03/15/34
 
185
194,762
System Energy Resources, Inc., 5.30%, 12/15/34
 
820
828,836
Talen Energy Supply LLC(a)
 
6.25%, 02/01/34
 
185
188,684
6.50%, 02/01/36
 
205
211,988
Tampa Electric Co.(e)
 
5.15%, 03/01/35
 
755
765,599
3.45%, 03/15/51
 
35
24,763
Tucson Electric Power Co.
 
1.50%, 08/01/30(e)
 
90
80,021
22
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Electric Utilities (continued)
Tucson Electric Power Co. (continued)
 
5.50%, 04/15/53
$
30
$ 28,769
Union Electric Co.
 
4.00%, 04/01/48
 
230
182,494
5.45%, 03/15/53
 
10
9,638
Virginia Electric and Power Co.
 
3.30%, 12/01/49
 
190
130,848
5.35%, 01/15/54
 
195
182,813
5.65%, 03/15/55
 
40
39,164
Series A, 3.80%, 04/01/28
 
750
747,216
Series D, 5.60%, 09/15/55
 
65
63,131
Vistra Operations Co. LLC, 7.75%, 10/15/31(a)
 
104
110,154
Wisconsin Electric Power Co., 4.75%, 09/30/32(e)
 
20
20,364
Wisconsin Power and Light Co., 5.38%, 03/30/34
 
90
92,783
Wisconsin Public Service Corp., 3.30%, 09/01/49
 
85
59,034
Xcel Energy, Inc.
 
4.00%, 06/15/28
 
900
900,037
5.45%, 08/15/33
 
100
103,221
3.50%, 12/01/49
 
50
35,823
 
 
17,952,905
Electronic Equipment, Instruments & Components — 0.6%
Allegion PLC, 3.50%, 10/01/29
 
90
87,734
Arrow Electronics, Inc., 5.88%, 04/10/34
 
880
917,986
CDW LLC/CDW Finance Corp.
 
3.25%, 02/15/29
 
880
847,214
3.57%, 12/01/31
 
610
568,210
Honeywell International, Inc., 4.50%, 01/15/34
 
750
743,343
Jabil, Inc., 1.70%, 04/15/26(e)
 
1,055
1,047,663
Keysight Technologies, Inc., 4.95%, 10/15/34
 
325
327,343
 
 
4,539,493
Energy Equipment & Services(a) — 0.1%
Tidewater, Inc., 9.13%, 07/15/30
 
269
288,621
USA Compression Partners LP/USA Compression
Finance Corp., 7.13%, 03/15/29(e)
 
91
94,195
Viridien, 10.00%, 10/15/30
 
150
158,172
Weatherford International Ltd., 6.75%, 10/15/33
 
170
174,099
 
 
715,087
Entertainment — 0.0%
Warnermedia Holdings, Inc., 5.14%, 03/15/52
 
102
67,203
Environmental, Maintenance & Security Service — 0.4%
Republic Services, Inc.
 
4.75%, 07/15/30
 
115
117,636
5.20%, 11/15/34
 
570
590,172
Waste Connections, Inc.
 
2.60%, 02/01/30
 
305
287,623
5.25%, 09/01/35(e)
 
1,070
1,107,462
Waste Management, Inc., 4.95%, 07/03/31
 
915
947,130
 
 
3,050,023
Financial Services — 4.7%
AerCap Ireland Capital DAC/AerCap Global Aviation
Trust, 4.95%, 09/10/34
 
1,300
1,297,456
Ally Financial, Inc., (5-year CMT + 2.45%), 6.65%,
01/17/40(b)
 
28
28,181
American Express Co., (1-day SOFR + 1.24%), 4.80%,
10/24/36(b)
 
390
385,101
Banco Santander SA
 
5.59%, 08/08/28
 
1,800
1,865,519
(1-year CMT + 0.90%), 1.72%, 09/14/27(b)
 
400
393,214
Bank of America Corp.(b)
 
(1-day SOFR + 0.96%), 1.73%, 07/22/27
 
830
819,412
Security
 
Par
(000)
Value
Financial Services (continued)
Bank of America Corp.(b) (continued)
 
(1-day SOFR + 1.05%), 2.55%, 02/04/28
$
225
$ 221,320
(1-day SOFR + 1.31%), 5.51%, 01/24/36
 
1,370
1,428,359
(1-day SOFR + 1.65%), 5.47%, 01/23/35
 
325
338,559
(1-day SOFR + 1.70%), 5.74%, 02/12/36
 
780
812,758
(1-day SOFR + 1.99%), 6.20%, 11/10/28
 
735
763,747
(1-day SOFR + 2.04%), 4.95%, 07/22/28
 
775
785,973
(3-mo. CME Term SOFR + 3.41%), 4.08%, 03/20/51
 
91
72,913
Bank of Nova Scotia, 1.05%, 03/02/26
 
550
547,501
Bread Financial Holdings, Inc., 6.75%, 05/15/31(a)(e)
 
100
103,532
Burford Capital Global Finance LLC(a)
 
6.88%, 04/15/30
 
50
48,758
9.25%, 07/01/31
 
220
226,514
Charles Schwab Corp., (1-day SOFR + 1.23%), 4.91%,
11/14/36(b)
 
540
536,374
Citigroup, Inc.(b)
 
(1-day SOFR + 1.14%), 4.64%, 05/07/28
 
270
272,192
(1-day SOFR + 1.83%), 6.02%, 01/24/36
 
283
296,412
(1-day SOFR + 2.11%), 2.57%, 06/03/31
 
2,285
2,117,125
Coinbase Global, Inc.(a)
 
3.38%, 10/01/28
 
312
297,225
3.63%, 10/01/31(e)
 
81
72,217
Credit Acceptance Corp.(a)
 
9.25%, 12/15/28
 
192
200,671
6.63%, 03/15/30
 
105
105,207
Freedom Mortgage Holdings LLC, 8.38%,
04/01/32(a)(e)
 
40
42,107
Goldman Sachs Group, Inc.(b)
 
(1-day SOFR + 0.80%), 1.43%, 03/09/27
 
370
368,109
(1-day SOFR + 1.09%), 1.99%, 01/27/32
 
1,073
953,221
(1-day SOFR + 1.25%), 2.38%, 07/21/32
 
1,295
1,159,817
(1-day SOFR + 1.28%), 2.62%, 04/22/32
 
1,377
1,255,566
(1-day SOFR + 1.42%), 5.02%, 10/23/35
 
1,530
1,538,191
(3-mo. CME Term SOFR + 1.69%), 4.41%, 04/23/39
 
370
341,835
HSBC Holdings PLC(b)
 
(1-day SOFR + 1.29%), 5.29%, 11/19/30
 
735
758,358
(1-day SOFR + 1.56%), 5.45%, 03/03/36
 
570
588,071
(1-day SOFR + 1.90%), 5.87%, 11/18/35
 
570
595,146
(3-mo. CME Term SOFR + 1.87%), 3.97%, 05/22/30
 
1,740
1,718,851
Intercontinental Exchange, Inc., 3.00%, 09/15/60
 
180
107,610
JPMorgan Chase & Co.(b)
 
(1-day SOFR + 0.80%), 4.92%, 01/24/29
 
1,720
1,751,975
(1-day SOFR + 1.26%), 2.96%, 01/25/33
 
415
380,837
(1-day SOFR + 1.34%), 4.95%, 10/22/35
 
805
812,936
(1-day SOFR + 1.99%), 4.85%, 07/25/28
 
665
673,550
(1-day SOFR + 2.08%), 4.91%, 07/25/33
 
470
478,793
(3-mo. CME Term SOFR + 1.11%), 1.76%, 11/19/31
 
580
515,263
(3-mo. CME Term SOFR + 1.25%), 2.58%, 04/22/32
 
1,063
971,637
Mitsubishi UFJ Financial Group, Inc.(b)
 
(1-year CMT + 0.95%), 2.31%, 07/20/32
 
425
379,013
(1-year CMT + 0.97%), 2.49%, 10/13/32
 
315
282,153
Mizuho Financial Group, Inc., (1-year CMT + 1.90%),
5.75%, 07/06/34(b)
 
590
624,931
Morgan Stanley
 
3.88%, 01/27/26
 
200
199,973
4.30%, 01/27/45
 
233
201,647
(1-day SOFR + 1.03%), 1.79%, 02/13/32(b)
 
415
364,474
(1-day SOFR + 1.14%), 2.70%, 01/22/31(b)
 
65
60,970
(1-day SOFR + 1.20%), 2.51%, 10/20/32(b)
 
210
188,340
(1-day SOFR + 1.42%), 5.59%, 01/18/36(b)
 
525
548,617
(1-day SOFR + 1.45%), 5.17%, 01/16/30(b)
 
140
143,719
(1-day SOFR + 1.58%), 5.83%, 04/19/35(b)
 
205
217,845
(1-day SOFR + 1.73%), 5.47%, 01/18/35(b)
 
55
57,171
Master Portfolio Schedule of Investments
23
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Financial Services (continued)
Morgan Stanley (continued)
 
(5-year CMT + 2.43%), 5.95%, 01/19/38(b)(e)
$
265
$ 278,864
Nasdaq, Inc., 3.85%, 06/30/26
 
32
31,984
OneMain Finance Corp., 6.75%, 09/15/33
 
95
96,200
PennyMac Financial Services, Inc.(a)
 
7.13%, 11/15/30
 
120
126,147
6.88%, 05/15/32
 
207
216,707
6.88%, 02/15/33
 
140
146,153
6.75%, 02/15/34
 
35
36,180
Rocket Cos., Inc.(a)
 
6.50%, 08/01/29
 
130
134,080
6.13%, 08/01/30
 
105
108,536
6.38%, 08/01/33
 
42
43,790
UBS Group AG, (1-day SOFR + 1.73%), 3.09%,
05/14/32(a)(b)
 
240
222,665
UWM Holdings LLC(a)
 
6.63%, 02/01/30
 
287
290,610
6.25%, 03/15/31
 
125
124,801
 
 
34,173,683
Food Products — 0.2%
Pilgrim’s Pride Corp., 3.50%, 03/01/32
 
1,100
1,016,175
Post Holdings, Inc.(a)(e)
 
6.38%, 03/01/33
 
264
266,640
6.25%, 10/15/34
 
105
105,583
 
 
1,388,398
Ground Transportation — 0.2%
Burlington Northern Santa Fe LLC, 3.05%, 02/15/51
 
383
252,405
CSX Corp.
 
2.60%, 11/01/26
 
800
791,558
4.90%, 03/15/55(e)
 
55
49,287
Danaos Corp., 6.88%, 10/15/32(a)(e)
 
275
284,120
 
 
1,377,370
Health Care Equipment & Supplies — 0.1%
Abbott Laboratories, 4.90%, 11/30/46
 
265
249,511
Bausch & Lomb Corp., 8.38%, 10/01/28(a)
 
140
146,125
Insulet Corp., 6.50%, 04/01/33(a)
 
207
215,774
Zimmer Biomet Holdings, Inc.
 
4.70%, 02/19/27
 
50
50,414
5.35%, 12/01/28
 
160
165,416
 
 
827,240
Health Care Providers & Services — 1.2%
Allina Health System, Series 2021, 2.90%, 11/15/51(e)
 
230
144,615
Banner Health, Series 2020, 3.18%, 01/01/50(e)
 
119
81,079
Baylor Scott & White Holdings, Series 2021, 2.84%,
11/15/50
 
92
58,249
Beth Israel Lahey Health, Inc., Series L, 3.08%,
07/01/51(e)
 
169
110,603
CommonSpirit Health, 3.91%, 10/01/50
 
339
253,188
DaVita, Inc.(a)
 
6.88%, 09/01/32
 
123
128,039
6.75%, 07/15/33
 
90
93,320
Fortrea Holdings, Inc., 7.50%, 07/01/30(a)(e)
 
156
159,448
Fred Hutchinson Cancer Center, Series 2022, 4.97%,
01/01/52
 
130
117,415
Hackensack Meridian Health, Inc., Series 2020, 2.88%,
09/01/50
 
58
37,387
HCA, Inc.
 
5.45%, 04/01/31
 
535
558,379
3.63%, 03/15/32
 
720
680,062
5.60%, 04/01/34
 
425
443,241
Security
 
Par
(000)
Value
Health Care Providers & Services (continued)
HCA, Inc. (continued)
 
5.13%, 06/15/39
$
485
$ 468,369
3.50%, 07/15/51
 
175
118,616
4.63%, 03/15/52
 
745
608,412
6.00%, 04/01/54
 
180
178,947
5.95%, 09/15/54
 
170
167,942
Hoag Memorial Hospital Presbyterian, 3.80%, 07/15/52
 
73
55,291
Inova Health System Foundation, 4.07%, 05/15/52
 
18
14,259
Kaiser Foundation Hospitals
 
Series 2021, 2.81%, 06/01/41
 
57
42,331
Series 2021, 3.00%, 06/01/51
 
161
105,301
Memorial Sloan-Kettering Cancer Center, Series 2020,
2.96%, 01/01/50
 
46
30,184
Methodist Hospital, Series 20A, 2.71%, 12/01/50
 
87
53,625
MPH Acquisition Holdings LLC, (6.50% Cash and
5.00% PIK), 11.50%, 12/31/30(a)(f)
 
173
182,947
Providence St. Joseph Health Obligated Group,
Series 21A, 2.70%, 10/01/51
 
136
80,359
Quest Diagnostics, Inc.
 
4.60%, 12/15/27
 
1,125
1,138,435
4.63%, 12/15/29
 
1,380
1,403,397
Sutter Health, Series 20A, 3.36%, 08/15/50
 
54
37,756
UMass Memorial Health Care Obligated Group, 5.36%,
07/01/52(e)
 
42
39,443
UnitedHealth Group, Inc., 6.05%, 02/15/63
 
195
199,163
Universal Health Services, Inc., 5.05%, 10/15/34
 
645
632,923
WakeMed, Series A, 3.29%, 10/01/52(e)
 
81
55,643
 
 
8,478,368
Health Care REITs — 0.5%
Diversified Healthcare Trust
 
4.75%, 02/15/28(e)
 
150
144,791
7.25%, 10/15/30(a)
 
25
25,562
4.38%, 03/01/31
 
179
157,525
MPT Operating Partnership LP/MPT Finance Corp.,
5.00%, 10/15/27
 
161
155,426
Omega Healthcare Investors, Inc., 5.20%, 07/01/30
 
1,000
1,017,683
Ventas Realty LP
 
5.10%, 07/15/32
 
280
287,812
5.00%, 01/15/35
 
670
670,821
Welltower OP LLC, 4.50%, 07/01/30
 
1,140
1,152,707
 
 
3,612,327
Hotel & Resort REITs — 0.1%
Host Hotels & Resorts LP, 5.70%, 07/01/34
 
806
832,686
Hotels, Restaurants & Leisure — 1.0%
Acushnet Co., 5.63%, 12/01/33(a)
 
65
65,730
Darden Restaurants, Inc.
 
4.35%, 10/15/27
 
355
356,654
4.55%, 10/15/29
 
355
358,267
6.30%, 10/10/33
 
240
260,480
Genting New York LLC/GENNY Capital, Inc., 7.25%,
10/01/29(a)
 
149
152,809
Hilton Domestic Operating Co., Inc., 6.13%,
04/01/32(a)
 
114
118,048
Hyatt Hotels Corp., 5.38%, 12/15/31
 
1,625
1,673,753
Las Vegas Sands Corp., 6.20%, 08/15/34
 
85
89,336
Light & Wonder International, Inc.(a)
 
7.25%, 11/15/29
 
63
64,705
7.50%, 09/01/31
 
198
206,579
6.25%, 10/01/33
 
65
65,806
Lindblad Expeditions LLC, 7.00%, 09/15/30(a)
 
40
41,727
24
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Hotels, Restaurants & Leisure (continued)
Marriott International, Inc.
 
5.00%, 10/15/27
$
170
$ 172,874
5.55%, 10/15/28
 
310
321,920
5.35%, 03/15/35
 
800
821,900
Series AA, 4.65%, 12/01/28
 
46
46,803
Series FF, 4.63%, 06/15/30
 
41
41,612
Series HH, 2.85%, 04/15/31
 
670
621,146
McDonald’s Corp.
 
3.63%, 09/01/49
 
180
132,460
5.15%, 09/09/52(e)
 
350
324,878
Resorts World Las Vegas LLC/RWLV Capital, Inc.,
8.45%, 07/27/30(a)
 
72
71,138
Royal Caribbean Cruises Ltd., 5.38%, 01/15/36
 
250
251,047
Viking Cruises Ltd., 5.88%, 10/15/33(a)
 
81
82,252
Warnermedia Holdings, Inc.
 
4.05%, 03/15/29(e)
 
75
72,585
4.28%, 03/15/32
 
85
74,615
5.05%, 03/15/42
 
210
147,787
Wynn Macau Ltd., 6.75%, 02/15/34(a)
 
200
202,812
 
 
6,839,723
Household Durables — 0.2%
Century Communities, Inc., 6.63%, 09/15/33(a)
 
5
5,056
Lennar Corp., 4.75%, 11/29/27
 
90
90,722
NVR, Inc., 3.00%, 05/15/30
 
1,375
1,301,424
Sekisui House U.S., Inc., 3.97%, 08/06/61(e)
 
30
20,150
Somnigroup International, Inc., 4.00%, 04/15/29(a)
 
98
95,480
Whirlpool Corp.
 
6.13%, 06/15/30
 
70
69,915
4.50%, 06/01/46(e)
 
48
36,042
4.60%, 05/15/50(e)
 
48
35,287
 
 
1,654,076
Household Products — 0.0%
Kimberly-Clark Corp., 2.88%, 02/07/50
 
160
105,771
Independent Power and Renewable Electricity Producers(a) — 0.0%
NRG Energy, Inc.
 
6.25%, 11/01/34
 
36
36,973
6.00%, 01/15/36
 
58
58,768
 
 
95,741
Industrial Conglomerates — 0.0%
Eaton Corp., 4.70%, 08/23/52
 
90
80,124
Enpro, Inc., 6.13%, 06/01/33(a)
 
152
156,848
 
 
236,972
Insurance — 1.5%
Acrisure LLC/Acrisure Finance, Inc., 6.75%,
07/01/32(a)
 
50
51,505
Aflac, Inc., 4.75%, 01/15/49
 
45
39,658
Allstate Corp., 5.05%, 06/24/29
 
470
485,469
American International Group, Inc., 4.85%, 05/07/30(e)
 
470
481,685
Arthur J Gallagher & Co.
 
3.50%, 05/20/51
 
440
306,774
6.75%, 02/15/54
 
235
259,655
Assurant, Inc., 5.55%, 02/15/36
 
305
309,895
Assured Guaranty U.S. Holdings, Inc., 6.13%,
09/15/28
 
335
351,916
Athene Holding Ltd.
 
3.95%, 05/25/51
 
30
20,961
3.45%, 05/15/52(e)
 
55
34,741
Security
 
Par
(000)
Value
Insurance (continued)
Baldwin Insurance Group Holdings LLC/Baldwin
Insurance Group Holdings Finance, 7.13%,
05/15/31(a)
$
224
$ 232,086
Berkshire Hathaway Finance Corp.
 
4.20%, 08/15/48
 
125
104,317
2.85%, 10/15/50
 
95
61,107
3.85%, 03/15/52
 
175
134,663
Brighthouse Financial, Inc., 3.85%, 12/22/51
 
120
72,221
Brown & Brown, Inc.
 
4.20%, 03/17/32
 
120
116,116
5.65%, 06/11/34
 
230
237,313
4.95%, 03/17/52
 
340
296,524
CNA Financial Corp., 5.20%, 08/15/35
 
400
401,909
Everest Reinsurance Holdings, Inc., 3.50%, 10/15/50
 
800
556,753
Fairfax Financial Holdings Ltd.
 
3.38%, 03/03/31
 
360
339,818
6.35%, 03/22/54
 
330
341,796
6.10%, 03/15/55
 
254
254,632
Fidelity National Financial, Inc., 3.40%, 06/15/30
 
1,000
954,233
Markel Group, Inc., 6.00%, 05/16/54
 
485
488,059
Marsh & McLennan Cos., Inc.
 
4.75%, 03/15/39
 
111
106,861
4.20%, 03/01/48
 
515
423,630
MGIC Investment Corp., 5.25%, 08/15/28
 
63
63,001
Principal Financial Group, Inc.
 
5.38%, 03/15/33
 
233
243,352
5.50%, 03/15/53
 
90
87,619
Progressive Corp.
 
4.13%, 04/15/47
 
135
111,569
3.70%, 03/15/52
 
35
26,224
RenaissanceRe Holdings Ltd., 5.75%, 06/05/33
 
1,000
1,045,596
Travelers Cos., Inc., 5.45%, 05/25/53
 
140
137,958
Unum Group, 4.13%, 06/15/51
 
410
311,149
Willis North America, Inc., 5.90%, 03/05/54
 
940
938,322
 
 
10,429,087
Interactive Media & Services — 0.5%
Alphabet, Inc.
 
4.50%, 05/15/35
 
1,975
1,964,480
2.25%, 08/15/60
 
335
171,620
Cogent Communications Group LLC/Cogent Finance,
Inc.(a)
 
7.00%, 06/15/27
 
120
119,956
7.00%, 06/15/27(e)
 
111
111,074
Meta Platforms, Inc.
 
4.60%, 11/15/32
 
185
186,487
5.60%, 05/15/53
 
170
162,717
5.63%, 11/15/55
 
325
311,925
Netflix, Inc., 5.40%, 08/15/54
 
100
96,906
Snap, Inc., 6.88%, 03/01/33(a)(e)
 
239
247,663
 
 
3,372,828
Internet Software & Services — 0.6%
Getty Images, Inc.(a)(e)
 
11.25%, 02/21/30
 
102
95,643
10.50%, 11/15/30
 
215
216,777
GrubHub Holdings, Inc., (6.00% Cash and 7.00% PIK),
13.00%, 07/31/30(a)(e)(f)
 
178
144,893
Match Group Holdings II LLC(a)
 
5.63%, 02/15/29
 
72
72,220
6.13%, 09/15/33
 
142
143,701
Master Portfolio Schedule of Investments
25
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Internet Software & Services (continued)
Rakuten Group, Inc.(a)
 
11.25%, 02/15/27
$
225
$ 240,570
9.75%, 04/15/29
 
200
223,692
Uber Technologies, Inc., 5.35%, 09/15/54
 
115
109,672
VeriSign, Inc.
 
2.70%, 06/15/31
 
2,332
2,123,011
5.25%, 06/01/32
 
225
231,267
Wayfair LLC(a)
 
7.25%, 10/31/29
 
218
227,520
7.75%, 09/15/30(e)
 
335
356,929
 
 
4,185,895
IT Services — 0.2%
Accenture Capital, Inc., 4.50%, 10/04/34
 
95
93,648
CACI International, Inc., 6.38%, 06/15/33(a)
 
128
132,439
Fair Isaac Corp., 6.00%, 05/15/33(a)
 
102
104,769
IBM International Capital Pte. Ltd.
 
5.25%, 02/05/44
 
300
289,652
5.30%, 02/05/54
 
200
186,400
International Business Machines Corp., 4.25%,
05/15/49
 
746
602,404
Kyndryl Holdings, Inc., 4.10%, 10/15/41
 
30
23,762
Oracle Corp., 5.95%, 09/26/55
 
125
110,752
 
 
1,543,826
Leisure Products(a) — 0.1%
Amer Sports Co., 6.75%, 02/16/31(e)
 
269
281,355
Life Time, Inc., 6.00%, 11/15/31
 
154
157,775
Patrick Industries, Inc., 6.38%, 11/01/32
 
200
205,190
 
 
644,320
Machinery — 0.4%
IDEX Corp., 2.63%, 06/15/31
 
2,189
1,999,204
Manitowoc Co., Inc., 9.25%, 10/01/31(a)(e)
 
117
125,670
Otis Worldwide Corp.
 
3.11%, 02/15/40
 
70
54,979
3.36%, 02/15/50
 
70
49,727
Westinghouse Air Brake Technologies Corp., 5.61%,
03/11/34
 
310
325,521
 
 
2,555,101
Media — 1.0%
AMC Networks, Inc.
 
10.25%, 01/15/29(a)(e)
 
275
288,368
4.25%, 02/15/29
 
173
153,741
10.50%, 07/15/32(a)(e)
 
206
227,577
APLD ComputeCo LLC, 9.25%, 12/15/30(a)
 
395
387,456
CCO Holdings LLC/CCO Holdings Capital Corp.
 
5.38%, 06/01/29(a)
 
140
138,421
6.38%, 09/01/29(a)
 
31
31,426
7.38%, 03/01/31(a)(e)
 
355
362,273
4.50%, 05/01/32(e)
 
132
118,475
Charter Communications Operating LLC/Charter
Communications Operating Capital, 3.95%,
06/30/62
 
385
231,665
Cipher Compute LLC, 7.13%, 11/15/30(a)(e)
 
60
61,109
Comcast Corp., 2.35%, 01/15/27
 
200
196,918
CSC Holdings LLC(a)
 
5.50%, 04/15/27
 
150
128,613
11.25%, 05/15/28
 
351
279,278
Directv Financing LLC, 8.88%, 02/01/30(a)
 
39
39,460
Directv Financing LLC/Directv Financing Co-Obligor,
Inc.(a)
 
5.88%, 08/15/27
 
57
57,335
Security
 
Par
(000)
Value
Media (continued)
Directv Financing LLC/Directv Financing Co-Obligor,
Inc.(a) (continued)
 
10.00%, 02/15/31
$
183
$ 187,035
Discovery Communications LLC, 5.00%, 09/20/37
 
100
80,012
DISH DBS Corp.(e)
 
7.38%, 07/01/28
 
156
150,841
5.75%, 12/01/28(a)
 
151
148,245
FactSet Research Systems, Inc.
 
2.90%, 03/01/27
 
1,575
1,551,217
3.45%, 03/01/32
 
483
448,807
Flash Compute LLC, 7.25%, 12/31/30(a)
 
85
84,215
Fox Corp., 5.48%, 01/25/39
 
500
501,454
Gray Media, Inc., 9.63%, 07/15/32(a)(e)
 
20
20,755
iHeartCommunications, Inc.(a)
 
9.13%, 05/01/29(e)
 
322
310,121
10.88%, 05/01/30
 
271
234,179
Nexstar Media, Inc., 4.75%, 11/01/28(a)(e)
 
146
144,941
Sinclair Television Group, Inc.(a)
 
5.50%, 03/01/30(e)
 
102
92,420
4.38%, 12/31/32
 
140
110,229
8.13%, 02/15/33
 
90
93,999
Sirius XM Radio LLC, 4.13%, 07/01/30(a)(e)
 
80
76,085
Time Warner Cable LLC, 4.50%, 09/15/42
 
250
192,256
Versant Media Group, Inc., 7.25%, 01/30/31(a)(e)
 
25
25,792
WULF Compute LLC, 7.75%, 10/15/30(a)
 
220
226,655
 
 
7,381,373
Metals & Mining — 1.1%
BHP Billiton Finance USA Ltd.
 
4.75%, 02/28/28
 
1,575
1,599,546
4.90%, 02/28/33
 
565
576,520
Century Aluminum Co., 6.88%, 08/01/32(a)
 
141
145,273
Champion Iron Canada, Inc., 7.88%, 07/15/32(a)
 
100
106,165
Cleveland-Cliffs, Inc., 7.63%, 01/15/34(a)(e)
 
205
214,229
Commercial Metals Co.(a)
 
5.75%, 11/15/33
 
65
66,465
6.00%, 12/15/35
 
120
123,019
Eldorado Gold Corp., 6.25%, 09/01/29(a)
 
138
138,679
First Quantum Minerals Ltd.(a)
 
9.38%, 03/01/29
 
140
147,420
8.00%, 03/01/33(e)
 
200
213,106
Fortescue Treasury Pty. Ltd., 6.13%, 04/15/32(a)(e)
 
168
175,305
Ivanhoe Mines Ltd., 7.88%, 01/23/30(a)
 
200
206,000
Kaiser Aluminum Corp., 5.88%, 03/01/34(a)(e)
 
95
95,298
Mineral Resources Ltd., 7.00%, 04/01/31(a)(e)
 
218
227,331
New Gold, Inc., 6.88%, 04/01/32(a)
 
129
136,900
Novelis Corp., 6.88%, 01/30/30(a)(e)
 
95
98,643
Perenti Finance Pty. Ltd., 7.50%, 04/26/29(a)
 
130
135,200
Reliance, Inc., 2.15%, 08/15/30
 
1,575
1,425,531
Rio Tinto Finance USA Ltd., 2.75%, 11/02/51
 
10
6,199
Rio Tinto Finance USA PLC, 5.25%, 03/14/35
 
785
808,891
Southern Copper Corp., 7.50%, 07/27/35
 
900
1,060,029
Taseko Mines Ltd., 8.25%, 05/01/30(a)(e)
 
169
179,518
Vallourec SACA, 7.50%, 04/15/32(a)
 
100
106,178
 
 
7,991,445
Mortgage Real Estate Investment Trusts (REITs)(a) — 0.1%
Apollo Commercial Real Estate Finance, Inc., 4.63%,
06/15/29
 
110
106,388
Blackstone Mortgage Trust, Inc., 7.75%, 12/01/29
 
169
180,309
26
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Mortgage Real Estate Investment Trusts (REITs) (continued)
EF Holdco/EF Cayman Holdings/Ellington Fin REIT
Cayman/TRS/EF Cayman Non-MTM, 7.38%,
09/30/30
$
35
$ 35,274
Starwood Property Trust, Inc.
 
3.63%, 07/15/26
 
152
151,256
7.25%, 04/01/29
 
87
91,881
6.50%, 10/15/30
 
85
88,620
 
 
653,728
Multi-Utilities — 0.3%
AmeriGas Partners LP/AmeriGas Finance Corp.,
9.38%, 06/01/28(a)
 
283
293,401
Atmos Energy Corp.
 
1.50%, 01/15/31(e)
 
30
26,313
5.75%, 10/15/52(e)
 
105
106,091
5.45%, 01/15/56
 
40
38,697
CenterPoint Energy Resources Corp., 5.25%, 03/01/28
 
85
87,107
National Fuel Gas Co., 5.95%, 03/15/35
 
450
470,369
NiSource, Inc.
 
3.60%, 05/01/30
 
60
58,293
5.35%, 04/01/34
 
80
82,470
3.95%, 03/30/48
 
130
101,389
5.00%, 06/15/52
 
20
17,693
Piedmont Natural Gas Co., Inc., 3.50%, 06/01/29
 
80
78,200
Southern California Gas Co., 5.75%, 06/01/53
 
100
99,353
Southern Co. Gas Capital Corp.
 
5.75%, 09/15/33
 
140
148,350
4.95%, 09/15/34
 
10
10,028
Southwest Gas Corp.
 
3.70%, 04/01/28
 
80
79,275
2.20%, 06/15/30
 
85
77,241
Washington Gas Light Co., 3.65%, 09/15/49
 
30
21,795
 
 
1,796,065
Oil, Gas & Consumable Fuels — 3.1%
Aethon United BR LP/Aethon United Finance Corp.,
7.50%, 10/01/29(a)
 
96
100,577
Antero Midstream Partners LP / Antero Midstream
Finance Corp., 5.75%, 07/01/34(a)
 
75
75,567
Antero Midstream Partners LP/Antero Midstream
Finance Corp., 5.75%, 10/15/33(a)
 
55
55,332
BKV Upstream Midstream LLC, 7.50%, 10/15/30(a)
 
220
222,919
California Resources Corp.(a)
 
8.25%, 06/15/29
 
259
270,909
7.00%, 01/15/34
 
90
88,654
Calumet Specialty Products Partners LP/Calumet
Finance Corp., 9.75%, 07/15/28(a)(e)
 
181
182,922
Canadian Natural Resources Ltd., 4.95%, 06/01/47
 
100
88,010
Cheniere Corpus Christi Holdings LLC, 5.13%,
06/30/27
 
160
161,547
Cheniere Energy, Inc., 5.65%, 04/15/34
 
600
622,428
Chevron Corp., 3.08%, 05/11/50
 
60
40,683
Chevron USA, Inc., 4.98%, 04/15/35
 
2,160
2,212,801
Chord Energy Corp.(a)
 
6.00%, 10/01/30
 
80
80,981
6.75%, 03/15/33(e)
 
125
129,265
CNX Resources Corp.(a)
 
7.38%, 01/15/31(e)
 
112
115,978
7.25%, 03/01/32
 
136
141,970
ConocoPhillips Co., 3.80%, 03/15/52
 
85
62,353
Continental Resources, Inc., 4.38%, 01/15/28
 
100
99,804
Coterra Energy, Inc.
 
4.38%, 03/15/29
 
660
661,748
Security
 
Par
(000)
Value
Oil, Gas & Consumable Fuels (continued)
Coterra Energy, Inc. (continued)
 
5.60%, 03/15/34
$
260
$ 267,890
5.40%, 02/15/35
 
205
208,074
CVR Energy, Inc., 8.50%, 01/15/29(a)
 
142
145,954
DCP Midstream Operating LP, 3.25%, 02/15/32
 
17
15,629
Delek Logistics Partners LP/Delek Logistics Finance
Corp.(a)
 
8.63%, 03/15/29
 
370
387,821
7.38%, 06/30/33
 
60
61,227
Devon Energy Corp.(e)
 
5.20%, 09/15/34
 
200
199,118
5.75%, 09/15/54
 
300
275,669
Diamond Foreign Asset Co./Diamond Finance LLC,
8.50%, 10/01/30(a)
 
88
93,222
Diamondback Energy, Inc.
 
6.25%, 03/15/33
 
125
134,682
5.90%, 04/18/64
 
170
160,475
Energy Transfer LP
 
5.20%, 04/01/30(e)
 
190
195,705
5.60%, 09/01/34
 
550
566,014
5.40%, 10/01/47
 
610
548,172
EOG Resources, Inc., 5.65%, 12/01/54(e)
 
125
122,257
Equinor ASA, 3.25%, 11/18/49
 
500
348,519
Expand Energy Corp., 5.70%, 01/15/35
 
297
307,357
Exxon Mobil Corp., 3.45%, 04/15/51
 
5
3,586
Genesis Energy LP/Genesis Energy Finance Corp.
 
8.25%, 01/15/29
 
128
133,617
8.88%, 04/15/30
 
19
19,994
7.88%, 05/15/32
 
134
139,683
8.00%, 05/15/33
 
75
77,858
Global Partners LP/GLP Finance Corp., 8.25%,
01/15/32(a)(e)
 
164
172,737
Gulfport Energy Operating Corp., 6.75%, 09/01/29(a)(e)
 
211
217,896
Ithaca Energy North Sea PLC, 8.13%, 10/15/29(a)
 
350
361,565
Kinder Morgan Energy Partners LP, 6.95%, 01/15/38
 
300
336,976
Kinder Morgan, Inc., 5.95%, 08/01/54
 
470
466,937
Magnolia Oil & Gas Operating LLC/Magnolia Oil & Gas
Finance Corp., 6.88%, 12/01/32(a)
 
194
199,388
MPLX LP
 
4.80%, 02/15/31
 
875
884,188
5.20%, 03/01/47
 
47
41,999
4.70%, 04/15/48
 
355
295,049
5.50%, 02/15/49
 
535
491,292
4.90%, 04/15/58
 
340
278,308
Nabors Industries, Inc.(a)
 
9.13%, 01/31/30
 
209
218,522
8.88%, 08/15/31
 
153
148,424
7.63%, 11/15/32
 
78
76,664
NGL Energy Operating LLC/NGL Energy Finance
Corp.(a)
 
8.13%, 02/15/29
 
142
147,391
8.38%, 02/15/32
 
158
163,619
Noble Finance II LLC, 8.00%, 04/15/30(a)
 
261
271,157
ONEOK Partners LP, 6.13%, 02/01/41
 
75
76,890
ONEOK, Inc.
 
6.35%, 01/15/31
 
1,140
1,223,521
6.10%, 11/15/32
 
590
631,352
7.15%, 01/15/51
 
80
87,839
Phillips 66 Co., 5.65%, 06/15/54
 
120
112,639
Plains All American Pipeline LP, 5.95%, 06/15/35
 
775
807,111
Plains All American Pipeline LP/PAA Finance Corp.
 
3.55%, 12/15/29
 
150
145,722
Master Portfolio Schedule of Investments
27
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Oil, Gas & Consumable Fuels (continued)
Plains All American Pipeline LP/PAA Finance
Corp. (continued)
 
5.70%, 09/15/34
$
70
$ 72,186
4.90%, 02/15/45
 
170
148,690
Seadrill Finance Ltd., 8.38%, 08/01/30(a)
 
36
37,438
Shell Finance U.S., Inc.(a)
 
6.38%, 12/15/38
 
67
74,629
3.00%, 11/26/51
 
178
114,170
Talos Production, Inc.(a)
 
9.00%, 02/01/29
 
202
209,805
9.38%, 02/01/31(e)
 
202
210,687
Targa Resources Corp.
 
5.50%, 02/15/35
 
1,345
1,377,753
5.55%, 08/15/35(e)
 
975
997,923
TotalEnergies Capital SA, 5.49%, 04/05/54(e)
 
440
425,444
Valaris Ltd., 8.38%, 04/30/30(a)(e)
 
262
272,602
Venture Global LNG, Inc.(a)(e)
 
8.13%, 06/01/28
 
41
41,529
8.38%, 06/01/31
 
80
79,554
9.88%, 02/01/32
 
83
85,745
Venture Global Plaquemines LNG LLC, 6.75%,
01/15/36(a)
 
54
55,312
Vermilion Energy, Inc., 7.25%, 02/15/33(a)(e)
 
225
211,995
Western Midstream Operating LP
 
6.35%, 01/15/29
 
65
68,402
5.50%, 12/15/35
 
485
482,421
 
 
22,650,442
Passenger Airlines(a) — 0.1%
American Airlines, Inc., 8.50%, 05/15/29
 
132
138,058
JetBlue Airways Corp./JetBlue Loyalty LP, 9.88%,
09/20/31(e)
 
221
222,649
 
 
360,707
Personal Care Products — 0.0%
Colgate-Palmolive Co.
 
3.25%, 08/15/32
 
90
84,798
3.70%, 08/01/47
 
30
23,662
 
 
108,460
Pharmaceuticals — 1.2%
1261229 B.C. Ltd., 10.00%, 04/15/32(a)
 
450
468,008
AbbVie, Inc.
 
4.05%, 11/21/39
 
50
44,633
4.40%, 11/06/42
 
135
120,083
4.70%, 05/14/45
 
145
131,128
5.40%, 03/15/54
 
260
252,765
5.50%, 03/15/64
 
165
160,189
Amneal Pharmaceuticals LLC, 6.88%, 08/01/32(a)
 
189
199,643
AstraZeneca PLC, 4.38%, 11/16/45
 
200
176,161
Bausch Health Cos., Inc., 11.00%, 09/30/28(a)
 
135
139,838
Cardinal Health, Inc.
 
5.45%, 02/15/34
 
158
164,157
5.35%, 11/15/34
 
750
773,124
Cencora, Inc.
 
3.45%, 12/15/27
 
1,427
1,414,354
4.85%, 12/15/29
 
420
429,319
2.70%, 03/15/31
 
117
107,794
5.15%, 02/15/35(e)
 
155
158,419
CVS Health Corp.
 
5.00%, 09/15/32
 
400
408,268
5.45%, 09/15/35
 
700
716,527
Eli Lilly & Co.
 
4.90%, 02/12/32
 
530
547,847
Security
 
Par
(000)
Value
Pharmaceuticals (continued)
Eli Lilly & Co. (continued)
 
4.88%, 02/27/53
$
115
$ 105,068
5.55%, 10/15/55
 
60
60,396
4.95%, 02/27/63
 
160
144,280
5.65%, 10/15/65
 
105
105,799
HLF Financing SARL LLC/Herbalife International, Inc.,
12.25%, 04/15/29(a)
 
163
175,998
Johnson & Johnson
 
3.63%, 03/03/37
 
195
177,208
3.70%, 03/01/46
 
279
226,087
Merck & Co., Inc.
 
4.00%, 03/07/49
 
330
264,077
5.00%, 05/17/53
 
710
652,101
Novartis Capital Corp., 2.75%, 08/14/50
 
271
173,421
Organon & Co./Organon Foreign Debt Co-Issuer BV,
6.75%, 05/15/34(a)
 
100
89,948
Pfizer Investment Enterprises Pte. Ltd., 5.34%,
05/19/63
 
80
74,224
Pfizer, Inc., 7.20%, 03/15/39
 
80
95,369
Zoetis, Inc., 3.00%, 05/15/50
 
100
66,240
 
 
8,822,473
Real Estate Management & Development — 0.1%
Anywhere Real Estate Group LLC/Realogy Co-Issuer
Corp.(a)
 
5.75%, 01/15/29
 
108
104,889
5.25%, 04/15/30
 
92
85,702
CBRE Services, Inc., 5.95%, 08/15/34
 
500
534,215
Five Point Operating Co. LP, 8.00%, 10/01/30(a)
 
145
151,493
 
 
876,299
Residential REITs — 0.1%
Realty Income Corp., 4.75%, 02/15/29
 
630
641,383
Retail REITs — 0.2%
Simon Property Group LP
 
4.75%, 03/15/42
 
700
645,158
4.25%, 11/30/46
 
700
583,859
3.25%, 09/13/49
 
330
227,311
 
 
1,456,328
Semiconductors & Semiconductor Equipment — 0.2%
Amkor Technology, Inc., 5.88%, 10/01/33(a)
 
160
163,301
ams-OSRAM AG, 12.25%, 03/30/29(a)
 
195
207,124
Analog Devices, Inc.
 
1.70%, 10/01/28
 
385
363,403
2.80%, 10/01/41
 
240
177,016
2.95%, 10/01/51
 
30
19,463
Broadcom, Inc., 4.00%, 04/15/29(a)
 
80
79,663
Kioxia Holdings Corp., 6.63%, 07/24/33
 
166
172,619
Marvell Technology, Inc., 5.95%, 09/15/33
 
90
96,226
Texas Instruments, Inc., 2.70%, 09/15/51(e)
 
570
348,605
 
 
1,627,420
Software — 1.4%
AppLovin Corp.
 
5.13%, 12/01/29
 
350
359,004
5.38%, 12/01/31
 
815
845,130
Cloud Software Group, Inc.(a)
 
9.00%, 09/30/29
 
116
120,815
8.25%, 06/30/32
 
100
104,504
CoreWeave, Inc.(a)(e)
 
9.25%, 06/01/30
 
507
471,395
9.00%, 02/01/31
 
216
197,968
Electronic Arts, Inc., 2.95%, 02/15/51(e)
 
150
138,361
28
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Software (continued)
Intuit, Inc.
 
1.65%, 07/15/30
$
71
$ 63,778
5.20%, 09/15/33
 
460
480,910
5.50%, 09/15/53
 
150
147,739
Microsoft Corp.
 
2.53%, 06/01/50
 
325
198,428
2.50%, 09/15/50
 
125
75,715
MSCI, Inc., 5.15%, 03/15/36
 
740
734,585
Oracle Corp.
 
2.95%, 04/01/30
 
385
355,420
4.65%, 05/06/30
 
235
232,941
2.88%, 03/25/31
 
615
552,634
5.50%, 08/03/35
 
1,610
1,577,611
3.65%, 03/25/41
 
845
616,444
4.50%, 07/08/44
 
90
68,893
3.60%, 04/01/50
 
70
43,604
3.95%, 03/25/51
 
111
73,034
5.55%, 02/06/53
 
427
354,359
5.38%, 09/27/54
 
720
582,317
3.85%, 04/01/60
 
683
417,346
Pagaya U.S. Holdings Co. LLC, 8.88%, 08/01/30(a)(e)
 
287
249,872
Roper Technologies, Inc., 4.50%, 10/15/29
 
665
671,277
Sabre GLBL, Inc., 10.75%, 03/15/30(a)
 
1
1,053
ServiceNow, Inc., 1.40%, 09/01/30
 
72
63,434
 
 
9,798,571
Specialty Retail — 0.3%
Advance Auto Parts, Inc.(a)
 
7.00%, 08/01/30
 
212
213,123
7.38%, 08/01/33(e)
 
285
286,131
AutoZone, Inc.
 
5.05%, 07/15/26
 
920
925,203
4.50%, 02/01/28
 
180
181,642
5.40%, 07/15/34(e)
 
65
67,289
Dick’s Sporting Goods, Inc., 4.00%, 10/01/29(a)
 
80
78,453
FirstCash, Inc., 6.88%, 03/01/32(a)
 
229
238,206
Kohl’s Corp., 10.00%, 06/01/30(a)
 
160
176,202
Macy’s Retail Holdings LLC, 7.38%, 08/01/33(a)(e)
 
85
90,096
Nordstrom, Inc., 4.38%, 04/01/30(e)
 
85
81,251
QVC, Inc., 6.88%, 04/15/29(a)
 
252
108,990
 
 
2,446,586
Technology Hardware, Storage & Peripherals — 0.2%
Diebold Nixdorf, Inc., 7.75%, 03/31/30(a)
 
25
26,604
NCR Atleos Corp., 9.50%, 04/01/29(a)
 
178
193,197
NetApp, Inc., 5.70%, 03/17/35(e)
 
713
746,186
Seagate Data Storage Technology Pte. Ltd., 5.88%,
07/15/30(a)
 
70
72,161
 
 
1,038,148
Textiles, Apparel & Luxury Goods — 0.2%
Ralph Lauren Corp., 5.00%, 06/15/32(e)
 
1,200
1,233,039
Tobacco — 1.2%
Altria Group, Inc.
 
2.45%, 02/04/32
 
1,550
1,370,637
5.63%, 02/06/35
 
135
140,358
5.80%, 02/14/39
 
727
749,277
5.95%, 02/14/49
 
600
599,874
4.45%, 05/06/50
 
215
172,333
3.70%, 02/04/51
 
430
303,860
4.00%, 02/04/61(e)
 
965
699,437
BAT Capital Corp.
 
5.83%, 02/20/31
 
190
201,576
Security
 
Par
(000)
Value
Tobacco (continued)
BAT Capital Corp. (continued)
 
7.75%, 10/19/32
$
25
$ 29,201
6.00%, 02/20/34
 
1,200
1,284,853
4.39%, 08/15/37
 
420
386,887
7.08%, 08/02/43
 
145
162,867
7.08%, 08/02/53
 
170
192,740
Philip Morris International, Inc.
 
5.75%, 11/17/32
 
710
758,801
5.38%, 02/15/33
 
290
303,249
5.63%, 09/07/33
 
650
689,448
4.25%, 11/10/44
 
510
433,784
Turning Point Brands, Inc., 7.63%, 03/15/32(a)
 
98
104,303
 
 
8,583,485
Transportation Infrastructure — 0.0%
United Parcel Service, Inc., 5.30%, 04/01/50(e)
 
280
267,911
Water Utilities — 0.1%
American Water Capital Corp.
 
2.80%, 05/01/30
 
270
255,941
5.45%, 03/01/54
 
65
63,020
Essential Utilities, Inc.
 
2.70%, 04/15/30
 
180
169,014
5.38%, 01/15/34
 
75
77,413
 
 
565,388
Wireless Telecommunication Services — 0.5%
Millicom International Cellular SA(a)
 
6.25%, 03/25/29
 
67
67,736
7.38%, 04/02/32
 
253
263,042
T-Mobile USA, Inc.
 
5.15%, 04/15/34
 
75
76,667
5.30%, 05/15/35
 
1,120
1,148,352
5.50%, 01/15/55
 
165
156,273
5.25%, 06/15/55
 
550
501,032
3.60%, 11/15/60
 
420
279,032
5.80%, 09/15/62
 
685
674,221
Verizon Communications, Inc., 5.88%, 11/30/55
 
55
54,340
Zegona Finance PLC, 8.63%, 07/15/29(a)(e)
 
294
311,840
 
 
3,532,535
Total Corporate Bonds — 37.6%
(Cost: $275,493,823)
272,052,113
Foreign Agency Obligations
Canada — 0.1%
Province of Quebec Canada, 4.50%, 09/08/33
 
600
607,374
Chile — 0.1%
Chile Government International Bonds, 3.10%,
01/22/61
 
650
403,975
Indonesia — 0.1%
Indonesia Government International Bonds
 
4.75%, 07/18/47(a)
 
300
280,687
3.35%, 03/12/71
 
200
129,500
 
 
410,187
Mexico — 0.2%
Mexico Government International Bonds
 
6.05%, 01/11/40
 
100
99,540
4.50%, 01/31/50
 
340
257,210
Master Portfolio Schedule of Investments
29
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Mexico (continued)
Mexico Government International Bonds (continued)
 
7.38%, 05/13/55
$
630
$ 677,880
3.77%, 05/24/61
 
535
329,025
 
 
1,363,655
Panama — 0.0%
Panama Government International Bonds, 3.87%,
07/23/60
 
220
145,310
Peru — 0.0%
Peru Government International Bonds
 
3.55%, 03/10/51
 
455
319,637
6.20%, 06/30/55
 
60
61,770
 
 
381,407
Philippines — 0.1%
Philippines Government International Bonds
 
2.65%, 12/10/45
 
200
132,575
3.20%, 07/06/46
 
200
143,500
5.90%, 02/04/50
 
240
253,080
 
 
529,155
Poland — 0.0%
Republic of Poland Government International Bonds,
Series 30Y, 5.50%, 03/18/54
 
250
238,479
South Korea — 0.0%
Export-Import Bank of Korea, 5.13%, 09/18/33
 
220
230,743
Total Foreign Agency Obligations — 0.6%
(Cost: $4,921,876)
4,310,285
Municipal Bonds
California — 0.1%
Bay Area Toll Authority, RB, BAB
 
Series F-2, 6.26%, 04/01/49
 
100
105,492
Series S-1, 6.92%, 04/01/40
 
25
28,355
Bay Area Toll Authority, Refunding RB, Series F-3,
3.13%, 04/01/55(e)
 
140
92,894
California State University, Refunding RB, Series B,
2.98%, 11/01/51
 
145
96,825
Regents of the University of California Medical Center
Pooled Revenue, RB
 
Series N, 3.01%, 05/15/50
 
120
80,128
Series N, 3.71%, 05/15/2120
 
85
53,593
State of California, GO, BAB, 7.60%, 11/01/40
 
150
183,603
State of California, Refunding GO, 3.50%, 04/01/28(e)
 
200
199,527
University of California, RB, Series AD, 4.86%,
05/15/2112
 
115
95,432
 
 
935,849
Florida — 0.0%
State Board of Administration Finance Corp., RB,
Series A, 2.15%, 07/01/30
 
119
109,493
Illinois — 0.1%
Chicago O’Hare International Airport, ARB, Series C,
Senior Lien, 4.47%, 01/01/49
 
65
56,964
Sales Tax Securitization Corp., Refunding RB,
Series B, 2nd Lien, 3.24%, 01/01/42
 
140
115,112
State of Illinois, GO, 5.10%, 06/01/33
 
223
228,034
 
 
400,110
Louisiana — 0.0%
Louisiana Local Government Environmental Facilities &
Community Development Authority, RB, Series A-4,
4.48%, 08/01/39
 
65
62,758
Security
 
Par
(000)
Value
Maryland — 0.0%
Maryland Health & Higher Educational Facilities
Authority, Refunding RB
 
Series D, 3.05%, 07/01/40
$
115
$ 89,961
Series D, 3.20%, 07/01/50(e)
 
80
54,160
 
 
144,121
Massachusetts — 0.0%
Commonwealth of Massachusetts, GOL, Series H,
2.90%, 09/01/49(e)
 
100
68,748
Michigan — 0.1%
University of Michigan, RB
 
Series A, 3.50%, 04/01/52
 
38
28,197
Series B, Sustainability Bonds, 3.50%, 04/01/52
 
67
49,716
University of Michigan, Refunding RB, Series C, 3.60%,
04/01/47
 
238
199,393
 
 
277,306
New Jersey — 0.0%
New Jersey Turnpike Authority, RB, BAB, Series A,
7.10%, 01/01/41
 
150
175,260
New York — 0.1%
City of New York, GO, Series B-1, Sustainability Bonds,
5.83%, 10/01/53
 
130
133,788
New York City Municipal Water Finance Authority,
Refunding RB, 5.88%, 06/15/44
 
250
254,090
Port Authority of New York & New Jersey, ARB
 
Series 192, 4.81%, 10/15/65
 
50
44,771
Series 210, 4.03%, 09/01/48
 
200
166,596
Port Authority of New York & New Jersey, RB,
Series 191, 4.82%, 06/01/45
 
200
183,740
 
 
782,985
Oklahoma — 0.0%
Oklahoma Development Finance Authority, RB,
Series A-2, 4.62%, 06/01/44(e)
 
110
106,060
Pennsylvania — 0.0%
Pennsylvania State University, Refunding RB, Series D,
2.84%, 09/01/50
 
80
54,015
Texas — 0.1%
Board of Regents of the University of Texas System,
Refunding RB, Series B, 2.44%, 08/15/49
 
105
65,355
Dallas Area Rapid Transit, Refunding RB, Series A,
Senior Lien, 2.61%, 12/01/48
 
100
68,549
Dallas Fort Worth International Airport, Refunding RB,
2.84%, 11/01/46
 
100
72,407
Grand Parkway Transportation Corp., Refunding RB,
Subordinate, 3.24%, 10/01/52
 
100
69,266
 
 
275,577
Virginia — 0.0%
University of Virginia, Refunding RB, Series U, 2.58%,
11/01/51
 
60
37,055
Total Municipal Bonds — 0.5%
(Cost: $4,364,293)
3,429,337
Non-Agency Mortgage-Backed Securities
Collateralized Mortgage Obligations — 12.9%
Citigroup Mortgage Loan Trust, Series 2013-AA,
Class A, 3.00%, 05/25/42(a)(b)
 
3
3,199
Connecticut Avenue Securities Trust(a)(b)
 
Series 2019-R04, Class 2B1, (30-day Avg SOFR +
5.36%), 9.24%, 06/25/39
 
1,227
1,248,858
30
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Collateralized Mortgage Obligations (continued)
Connecticut Avenue Securities Trust(a)(b) (continued)
 
Series 2020-R02, Class 2B1, (30-day Avg SOFR +
3.11%), 6.99%, 01/25/40
$
1,000
$ 1,016,768
Series 2020-SBT1, Class 1M2, (30-day Avg SOFR +
3.76%), 7.64%, 02/25/40
 
3,500
3,607,064
Series 2021-R01, Class 1B1, (30-day Avg SOFR +
3.10%), 6.97%, 10/25/41
 
3,250
3,302,271
Series 2021-R02, Class 2B1, (30-day Avg SOFR +
3.30%), 7.17%, 11/25/41
 
1,900
1,936,721
Series 2021-R03, Class 1B1, (30-day Avg SOFR +
2.75%), 6.62%, 12/25/41
 
4,625
4,693,611
Series 2022-R01, Class 1B1, (30-day Avg SOFR +
3.15%), 7.02%, 12/25/41
 
4,042
4,118,026
Series 2022-R02, Class 2B1, (30-day Avg SOFR +
4.50%), 8.37%, 01/25/42
 
1,300
1,343,415
Series 2022-R02, Class 2M2, (30-day Avg SOFR +
3.00%), 6.87%, 01/25/42
 
3,540
3,603,816
Series 2022-R03, Class 1B1, (30-day Avg SOFR +
6.25%), 10.12%, 03/25/42
 
2,860
3,032,701
Series 2022-R04, Class 1B1, (30-day Avg SOFR +
5.25%), 9.12%, 03/25/42
 
3,400
3,564,942
Series 2022-R04, Class 1M2, (30-day Avg SOFR +
3.10%), 6.97%, 03/25/42
 
3,500
3,584,771
Series 2022-R05, Class 2B1, (30-day Avg SOFR +
4.50%), 8.37%, 04/25/42
 
1,500
1,562,197
Series 2022-R05, Class 2M2, (30-day Avg SOFR +
3.00%), 6.87%, 04/25/42
 
1,323
1,352,216
Series 2024-R02, Class 1B1, (30-day Avg SOFR +
2.50%), 6.37%, 02/25/44
 
2,250
2,290,796
Series 2024-R05, Class 2M2, (30-day Avg SOFR +
1.70%), 5.57%, 07/25/44
 
1,690
1,695,814
Credit Suisse First Boston Mortgage Securities Corp.,
Series 2004-6, Class 3A1, 5.00%, 09/25/19
 
5
2,511
Fannie Mae Connecticut Avenue Securities,
Series 2018-C01, Class 1M2C, (30-day Avg SOFR +
2.36%), 6.24%, 07/25/30(b)
 
1,369
1,380,295
Freddie Mac STACR REMIC Trust(a)(b)
 
Series 2020-HQA5, Class B1, (30-day Avg SOFR +
4.00%), 7.87%, 11/25/50
 
2,000
2,197,042
Series 2021-DNA1, Class B1, (30-day Avg SOFR +
2.65%), 6.52%, 01/25/51
 
3,500
3,664,386
Series 2021-DNA2, Class B1, (30-day Avg SOFR +
3.40%), 7.27%, 08/25/33
 
3,100
3,418,108
Series 2021-DNA3, Class B1, (30-day Avg SOFR +
3.50%), 7.37%, 10/25/33
 
2,500
2,798,072
Series 2021-DNA5, Class B1, (30-day Avg SOFR +
3.05%), 6.92%, 01/25/34
 
3,000
3,186,517
Series 2021-DNA5, Class B2, (30-day Avg SOFR +
5.50%), 9.37%, 01/25/34
 
1,000
1,195,000
Series 2021-DNA6, Class B1, (30-day Avg SOFR +
3.40%), 7.27%, 10/25/41
 
3,520
3,581,913
Series 2021-DNA7, Class B1, (30-day Avg SOFR +
3.65%), 7.52%, 11/25/41
 
2,243
2,294,400
Series 2021-HQA1, Class B1, (30-day Avg SOFR +
3.00%), 6.87%, 08/25/33
 
3,750
4,074,313
Series 2021-HQA2, Class B1, (30-day Avg SOFR +
3.15%), 7.02%, 12/25/33
 
1,000
1,103,385
Series 2021-HQA4, Class M2, (30-day Avg SOFR +
2.35%), 6.22%, 12/25/41
 
1,000
1,008,541
Series 2022-DNA1, Class B1, (30-day Avg SOFR +
3.40%), 7.27%, 01/25/42
 
3,250
3,325,232
Security
 
Par
(000)
Value
Collateralized Mortgage Obligations (continued)
Freddie Mac STACR REMIC Trust(a)(b) (continued)
 
Series 2022-DNA2, Class M2, (30-day Avg SOFR +
3.75%), 7.62%, 02/25/42
$
1,587
$ 1,634,237
Series 2022-DNA3, Class M2, (30-day Avg SOFR +
4.35%), 8.22%, 04/25/42
 
2,500
2,603,941
Series 2022-DNA4, Class M2, (30-day Avg SOFR +
5.25%), 9.12%, 05/25/42
 
3,000
3,167,534
Series 2022-DNA7, Class M2, (30-day Avg SOFR +
7.00%), 10.87%, 03/25/52
 
1,500
1,645,731
Series 2022-HQA1, Class B1, (30-day Avg SOFR +
7.00%), 10.87%, 03/25/42
 
1,620
1,727,245
Series 2022-HQA1, Class M2, (30-day Avg SOFR +
5.25%), 9.12%, 03/25/42
 
4,150
4,353,095
Series 2022-HQA3, Class M1B, (30-day Avg SOFR
+ 3.55%), 7.42%, 08/25/42
 
2,500
2,599,987
 
 
92,918,671
Commercial Mortgage-Backed Securities(b) — 0.1%
BBCMS Mortgage Trust, Series 2023-C22, Class A5,
6.80%, 11/15/56
 
600
669,485
GS Mortgage Securities Trust, Series 2015-GC30,
Class B, 3.96%, 05/10/50
 
198
189,246
JP Morgan Chase Commercial Mortgage Securities
Trust, Series 2006-CB16, Class B, 5.67%, 05/12/45
 
210
10,823
 
 
869,554
Total Non-Agency Mortgage-Backed Securities — 13.0%
(Cost: $94,640,585)
93,788,225
Preferred Securities
Capital Trusts — 0.1%(b)
Electric Utilities — 0.0%
Electricite de France SA, 9.13%(a)(h)
 
94
109,317
Health Care Equipment & Supplies — 0.1%
CVS Health Corp.
 
6.75%, 12/10/54
 
126
131,591
7.00%, 03/10/55
 
128
134,278
 
 
265,869
 
375,186
Total Preferred Securities — 0.1%
(Cost: $376,760)
375,186
U.S. Government Sponsored Agency Securities
Agency Obligations — 0.1%
Uniform Mortgage-Backed Securities, 6.00%, 08/01/55
 
698
717,680
Collateralized Mortgage Obligations — 0.1%
Freddie Mac STACR REMIC Trust, Series 2020-DNA6,
Class B1, (30-day Avg SOFR + 3.00%), 6.87%,
12/25/50(a)(b)
 
680
726,028
Commercial Mortgage-Backed Securities — 0.9%
Fannie Mae-Aces(b)
 
Series 2018-M1, Class A2, 2.98%, 12/25/27
 
949
935,960
Series 2018-M7, Class A2, 3.03%, 03/25/28
 
1,393
1,373,095
Series 2018-M8, Class A2, 3.31%, 06/25/28
 
2,955
2,921,902
Freddie Mac Multifamily Structured Pass Through
Certificates, Series K072, Class A2, 3.44%,
12/25/27
 
1,190
1,181,167
 
 
6,412,124
Master Portfolio Schedule of Investments
31
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
Mortgage-Backed Securities — 26.8%
Fannie Mae Mortgage-Backed Securities
 
3.00%, 02/01/47
$
47
$ 42,491
4.00%, 02/01/47 - 02/01/57
 
921
877,140
3.50%, 11/01/51
 
2,742
2,529,201
(11th District Cost of Funds + 1.25%), 4.18%,
09/01/34(b)
 
34
33,040
(12-mo. RFUCCT US + 1.43%), 6.43%, 04/01/35(b)
 
16
16,386
(12-mo. RFUCCT US + 1.53%), 6.36%, 05/01/43(b)
 
9
9,686
(12-mo. RFUCCT US + 1.54%), 6.25%, 06/01/43(b)
 
19
19,523
(12-mo. RFUCCT US + 1.71%), 6.71%, 04/01/40(b)
 
1
984
(12-mo. RFUCCT US + 1.75%), 6.47%, 08/01/41(b)
 
9
9,198
(12-mo. RFUCCT US + 1.78%), 6.39%, 01/01/42(b)
 
4
4,084
(12-mo. RFUCCT US + 1.81%), 6.71%, 02/01/42(b)
 
1
550
(12-mo. RFUCCT US + 1.82%), 6.57%, 09/01/41(b)
 
10
10,263
(6-mo. RFUCCT US + 1.04%), 5.29%, 05/01/33(b)
 
2
1,876
(6-mo. RFUCCT US + 1.36%), 5.93%, 10/01/32(b)
 
6
5,644
Freddie Mac Mortgage-Backed Securities
 
2.50%, 02/01/27
 
58
57,221
3.00%, 05/01/27 - 10/01/47
 
3,726
3,424,251
6.00%, 11/01/28 - 04/01/38
 
127
134,430
6.50%, 06/01/29 - 08/01/36
 
144
153,239
7.50%, 12/01/30
 
—
(i)
243
4.50%, 04/01/31 - 01/01/49
 
724
725,394
3.50%, 03/01/32 - 04/01/49
 
4,591
4,355,127
5.50%, 05/01/33 - 08/01/38
 
328
338,476
5.00%, 08/01/33 - 03/01/48
 
214
219,258
4.00%, 07/01/41 - 01/01/49
 
1,993
1,933,584
(11th District Cost of Funds + 1.25%), 4.17%,
11/01/27(b)
 
6
6,294
(12-mo. RFUCCT US + 1.60%), 6.35%, 08/01/43(b)
 
3
2,636
(12-mo. RFUCCT US + 1.65%), 6.40%, 05/01/43(b)
 
11
10,975
(12-mo. RFUCCT US + 1.67%), 6.37%, 08/01/41(b)
 
10
10,701
(12-mo. RFUCCT US + 1.75%), 6.75%, 04/01/38(b)
 
26
26,926
(12-mo. RFUCCT US + 1.75%), 6.71%, 02/01/40(b)
 
14
14,543
(12-mo. RFUCCT US + 1.79%), 6.41%, 09/01/32(b)
 
—
(i)
147
(12-mo. RFUCCT US + 1.89%), 6.60%, 07/01/41(b)
 
3
3,333
(12-mo. RFUCCT US + 1.90%), 6.78%, 01/01/42(b)
 
—
(i)
31
(1-year CMT + 2.34%), 6.59%, 04/01/32(b)
 
2
2,469
Ginnie Mae Mortgage-Backed Securities
 
6.50%, 06/15/28 - 09/20/55
 
1,376
1,424,969
7.50%, 08/20/30
 
1
1,030
6.00%, 01/15/32 - 08/20/55(j)
 
2,994
3,059,812
5.00%, 11/20/33 - 01/15/55(j)
 
4,208
4,216,513
5.50%, 05/20/36 - 07/20/55(j)
 
5,178
5,241,407
4.50%, 03/15/39 - 01/22/56(j)
 
3,199
3,143,566
4.00%, 09/15/40 - 09/15/49
 
3,617
3,482,214
3.50%, 01/15/41 - 02/20/52
 
4,826
4,474,250
3.00%, 01/20/43 - 09/20/52
 
5,056
4,583,161
2.50%, 12/20/46 - 01/15/55(j)
 
6,610
5,672,813
2.00%, 12/20/51 - 01/15/55(j)
 
6,735
5,578,582
Uniform Mortgage-Backed Securities
 
3.00%, 08/01/27 - 01/14/56(j)
 
10,302
9,407,392
2.50%, 09/01/28 - 01/15/55(j)
 
25,167
21,856,806
4.50%, 04/01/29 - 01/15/55(j)
 
4,900
4,845,822
7.50%, 09/01/29
 
—
(i)
381
4.00%, 12/01/30 - 01/14/56(j)
 
4,530
4,410,449
6.50%, 12/01/30 - 09/01/55(j)
 
5,352
5,605,578
Security
 
Par
(000)
Value
Mortgage-Backed Securities (continued)
Uniform Mortgage-Backed Securities (continued)
 
3.50%, 11/01/31 - 06/01/49
$
4,458
$ 4,242,156
7.00%, 01/01/32 - 06/01/32
 
8
7,854
6.00%, 03/01/32 - 09/01/55(j)
 
30,136
30,998,420
5.50%, 10/01/32 - 10/01/55(j)
 
11,455
11,705,005
5.00%, 05/01/33 - 01/15/55(j)
 
7,746
7,765,237
2.00%, 12/01/35 - 01/15/55(j)
 
37,221
31,275,953
1.50%, 03/01/36 - 07/01/51
 
7,373
6,136,428
 
 
194,115,142
Total U.S. Government Sponsored Agency Securities — 27.9%
(Cost: $218,016,809)
201,970,974
U.S. Treasury Obligations
U.S. Treasury Bonds
 
2.00%, 11/15/41
 
11,700
8,165,777
2.88%, 05/15/43
 
4,000
3,105,156
4.13%, 08/15/44 - 08/15/53
 
15,700
14,327,696
3.38%, 11/15/48
 
12,200
9,652,774
U.S. Treasury Notes
 
4.00%, 02/29/28
 
46,055
46,535,339
3.63%, 05/31/28
 
2,800
2,807,328
4.63%, 04/30/29
 
7,100
7,329,363
4.38%, 11/30/30
 
30,000
30,863,672
3.88%, 08/15/34
 
2,470
2,431,985
Total U.S. Treasury Obligations — 17.3%
(Cost: $126,025,402)
125,219,090
Total Long-Term Investments — 102.3%
(Cost: $762,308,938)
739,706,130
 
 
 
 
Shares
 
Short-Term Securities
Money Market Funds — 4.1%
BlackRock Cash Funds: Institutional, SL Agency
Shares, 3.89%(k)(l)(m)
 
29,243,675
29,258,297
BlackRock Cash Funds: Treasury, SL Agency Shares,
3.72%(k)(l)
 
100,000
100,000
 
29,358,297
 
 
 
Par
(000)
 
U.S. Government Sponsored Agency Securities — 0.6%
Fannie Mae-Aces, Series 2016-M13, Class A2,
2.53%, 09/25/26(b)
$
526
520,662
Freddie Mac Mortgage-Backed Securities
 
4.00%, 03/01/26
 
1
1,423
3.50%, 04/01/26
 
1
471
Freddie Mac Multifamily Structured Pass Through
Certificates
 
Series K055, Class A2, 2.67%, 03/25/26
 
1,424
1,418,838
Series K060, Class A2, 3.30%, 10/25/26
 
1,190
1,183,008
32
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
(Percentages shown are based on Net Assets)
Security
 
Par
(000)
Value
U.S. Government Sponsored Agency Securities (continued)
Freddie Mac Multifamily Structured Pass Through
Certificates (continued)
 
Series K061, Class A2, 3.35%, 11/25/26(b)
$
1,515
$ 1,506,430
Uniform Mortgage-Backed Securities
 
4.00%, 05/01/26
 
1
1,377
3.00%, 12/01/26
 
1
777
 
4,632,986
Total Short-Term Securities — 4.7%
(Cost: $34,012,935)
33,991,283
Total Investments — 107.0%
(Cost: $796,321,873)
773,697,413
Liabilities in Excess of Other Assets — (7.0)%
(50,665,528
)
Net Assets — 100.0%
$ 723,031,885
 
(a)
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933,
as amended. These securities may be resold in transactions exempt from registration to
qualified institutional investors.
(b)
Variable rate security. Interest rate resets periodically. The rate shown is the effective
interest rate as of period end. Security description also includes the reference rate and
spread if published and available.
(c)
Security is valued using significant unobservable inputs and is classified as Level 3 in the
fair value hierarchy.
(d)
Non-income producing security.
(e)
All or a portion of this security is on loan.
(f)
Payment-in-kind security which may pay interest/dividends in additional par/shares
and/or in cash. Rates shown are the current rate and possible payment rates.
(g)
When-issued security.
(h)
Perpetual security with no stated maturity date.
(i)
Rounds to less than 1,000.
(j)
Represents or includes a TBA transaction.
(k)
Affiliate of the Master Portfolio.
(l)
Annualized 7-day yield as of period end.
(m)
All or a portion of this security was purchased with the cash collateral from loaned
securities.
Affiliates
Investments in issuers considered to be affiliate(s) of the Master Portfolio during the year ended December 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: 
Affiliated Issuer
Value at
12/31/24
Purchases
at Cost
Proceeds
from Sales
Net
Realized
Gain (Loss)
Change in
Unrealized
Appreciation
(Depreciation)
Value at
12/31/25
Shares
Held at
12/31/25
Income
Capital Gain
Distributions
from
Underlying
Funds
BlackRock Cash Funds: Institutional, SL Agency Shares
$ 34,828,678
$ —
$ (5,568,755
)(a)
$ (2,020
)
$ 394
$ 29,258,297
29,243,675
$ 460,193
(b)
$ —
BlackRock Cash Funds: Treasury, SL Agency Shares
100,000
—
—
—
—
100,000
100,000
4,185
—
 
 
$ (2,020
)
$ 394
$ 29,358,297
$ 464,378
$ —
 
(a)
Represents net amount purchased (sold).
(b)
All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and
from borrowers of securities.
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts 
Description
Number of
Contracts
Expiration
Date
Notional
Amount (000)
Value/
Unrealized
Appreciation
(Depreciation)
Long Contracts 
10-Year Australian Treasury Bonds
37
03/16/26
$ 2,703
$ 14,750
10-Year U.S. Treasury Note
22
03/20/26
2,474
(1,405
)
10-Year U.S. Ultra Long Treasury Note
196
03/20/26
22,543
(169,950
)
U.S. Long Bond
128
03/20/26
14,796
(228,000
)
Ultra U.S. Treasury Bond
121
03/20/26
14,278
(356,129
)
Long Gilt
26
03/27/26
3,202
(5,456
)
2-Year U.S. Treasury Note
365
03/31/26
76,208
(51,239
)
5-Year U.S. Treasury Note
212
03/31/26
23,173
(84,962
)
 
(882,391
)
Master Portfolio Schedule of Investments
33
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
 
Futures Contracts (continued)
Description
Number of
Contracts
Expiration
Date
Notional
Amount (000)
Value/
Unrealized
Appreciation
(Depreciation)
Short Contracts 
Euro Bund
2
03/06/26
$ 300
$ (167
)
10-Year Canadian Bond
16
03/20/26
1,409
16,425
 
16,258
 
$ (866,133
)
Forward Foreign Currency Exchange Contracts 
Currency Purchased
Currency Sold
Counterparty
Settlement Date
Unrealized
Appreciation
(Depreciation)
AUD
382,000
USD
253,772
Bank of America N.A.
03/18/26
$ 1,177
BRL
1,327,000
USD
236,996
HSBC Bank PLC
03/18/26
1,118
CAD
452,000
USD
329,840
Citibank N.A.
03/18/26
547
CAD
316,530
USD
229,689
Morgan Stanley & Co. International PLC
03/18/26
1,676
CLP
218,854,000
USD
237,035
Citibank N.A.
03/18/26
6,274
CLP
1,120,987,500
USD
1,212,757
Morgan Stanley & Co. International PLC
03/18/26
33,488
COP
1,196,601,800
USD
305,860
Bank of America N.A.
03/18/26
3,243
CZK
22,421,340
EUR
921,945
Goldman Sachs International
03/18/26
4,758
EUR
92,836
CHF
86,000
JPMorgan Chase Bank N.A.
03/18/26
70
EUR
149,088
CHF
138,000
JPMorgan Chase Bank N.A.
03/18/26
252
EUR
124,330
NOK
1,475,000
Deutsche Bank AG
03/18/26
311
EUR
245,109
SEK
2,650,000
Barclays Bank PLC
03/18/26
91
EUR
437,789
SEK
4,734,119
Citibank N.A.
03/18/26
59
EUR
110,000
USD
128,660
JPMorgan Chase Bank N.A.
03/18/26
1,048
EUR
1,976,520
USD
2,311,702
Natwest Markets PLC
03/18/26
18,936
GBP
736,000
USD
984,562
Bank of America N.A.
03/18/26
7,348
GBP
207,000
USD
278,973
Citibank N.A.
03/18/26
2
GBP
282,000
USD
375,767
JPMorgan Chase Bank N.A.
03/18/26
4,285
GBP
457,000
USD
610,042
Morgan Stanley & Co. International PLC
03/18/26
5,859
HUF
86,027,000
EUR
221,158
Goldman Sachs International
03/18/26
1,010
HUF
81,168,000
EUR
209,282
Standard Chartered Bank
03/18/26
227
INR
19,577,000
USD
216,120
Bank of America N.A.
03/18/26
277
INR
13,082,500
USD
143,504
Goldman Sachs International
03/18/26
1,106
INR
19,728,000
USD
215,708
Goldman Sachs International
03/18/26
2,358
INR
23,146,000
USD
254,195
HSBC Bank PLC
03/18/26
1,652
INR
78,818,500
USD
869,549
JPMorgan Chase Bank N.A.
03/18/26
1,682
KRW
570,680,460
USD
389,878
JPMorgan Chase Bank N.A.
03/18/26
6,351
MXN
1,039,000
USD
57,287
Barclays Bank PLC
03/18/26
3
MXN
3,973,000
USD
216,310
Goldman Sachs International
03/18/26
2,759
MXN
1,078,000
USD
59,398
JPMorgan Chase Bank N.A.
03/18/26
43
MXN
2,536,500
USD
139,682
Morgan Stanley & Co. International PLC
03/18/26
180
MXN
2,265,000
USD
124,660
Standard Chartered Bank
03/18/26
231
MXN
3,077,000
USD
169,597
State Street Bank and Trust Co.
03/18/26
67
MXN
4,150,000
USD
228,675
State Street Bank and Trust Co.
03/18/26
154
NOK
2,201,000
EUR
185,061
Citibank N.A.
03/18/26
84
PHP
12,822,000
USD
216,292
Societe Generale
03/18/26
327
SEK
17,113,200
EUR
1,577,122
JPMorgan Chase Bank N.A.
03/18/26
6,184
SGD
323,000
USD
251,302
Citibank N.A.
03/18/26
1,168
SGD
860,300
USD
668,213
UBS AG
03/18/26
4,234
THB
32,539,600
USD
1,026,418
Goldman Sachs International
03/18/26
11,745
THB
4,850,000
USD
154,705
HSBC Bank PLC
03/18/26
32
TWD
3,208,000
USD
101,541
HSBC Bank PLC
03/18/26
427
USD
218,608
COP
837,531,000
Barclays Bank PLC
03/18/26
2,259
USD
1,436,765
EUR
1,218,000
BNP Paribas SA
03/18/26
545
USD
293,950
EUR
249,000
Morgan Stanley & Co. International PLC
03/18/26
339
USD
502,029
EUR
425,000
Morgan Stanley & Co. International PLC
03/18/26
885
USD
304,765
JPY
47,338,500
JPMorgan Chase Bank N.A.
03/18/26
676
USD
217,075
MXN
3,928,000
Barclays Bank PLC
03/18/26
487
34
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
 
Forward Foreign Currency Exchange Contracts (continued)
Currency Purchased
Currency Sold
Counterparty
Settlement Date
Unrealized
Appreciation
(Depreciation)
USD
792,268
NZD
1,364,900
State Street Bank and Trust Co.
03/18/26
$ 4,301
USD
90,968
THB
2,827,000
Goldman Sachs International
03/18/26
774
USD
216,991
THB
6,794,000
Standard Chartered Bank
03/18/26
232
ZAR
3,644,000
USD
216,328
Barclays Bank PLC
03/18/26
2,604
ZAR
5,513,000
USD
326,005
Barclays Bank PLC
03/18/26
5,217
ZAR
1,608,000
USD
95,305
Citibank N.A.
03/18/26
1,304
ZAR
2,367,000
USD
140,153
Citibank N.A.
03/18/26
2,057
ZAR
32,484,500
USD
1,897,895
Citibank N.A.
03/18/26
53,781
IDR
3,656,182,000
USD
217,747
Deutsche Bank AG
03/25/26
745
IDR
2,531,934,000
USD
150,544
HSBC Bank PLC
03/25/26
763
USD
216,885
IDR
3,623,827,000
HSBC Bank PLC
03/25/26
327
 
 
 
 
 
 
210,139
AUD
145,000
USD
96,959
JPMorgan Chase Bank N.A.
03/18/26
(185
)
BRL
6,156,400
USD
1,107,240
Goldman Sachs International
03/18/26
(2,549
)
CAD
651,310
USD
477,058
Citibank N.A.
03/18/26
(987
)
CAD
1,449,690
USD
1,062,492
Citibank N.A.
03/18/26
(2,850
)
CAD
567,000
USD
414,841
Morgan Stanley & Co. International PLC
03/18/26
(396
)
COP
1,124,746,000
USD
292,674
Goldman Sachs International
03/18/26
(2,132
)
EUR
185,331
CHF
172,000
Barclays Bank PLC
03/18/26
(262
)
EUR
258,098
CHF
240,000
Barclays Bank PLC
03/18/26
(959
)
EUR
563,511
CHF
524,900
Deutsche Bank AG
03/18/26
(3,243
)
EUR
182,876
CHF
170,000
JPMorgan Chase Bank N.A.
03/18/26
(613
)
EUR
230,719
CHF
214,000
JPMorgan Chase Bank N.A.
03/18/26
(169
)
EUR
251,029
CHF
233,000
JPMorgan Chase Bank N.A.
03/18/26
(390
)
EUR
182,765
CZK
4,462,000
Barclays Bank PLC
03/18/26
(1,782
)
EUR
183,295
CZK
4,463,000
Barclays Bank PLC
03/18/26
(1,205
)
EUR
208,045
CZK
5,054,000
Barclays Bank PLC
03/18/26
(802
)
EUR
184,446
CZK
4,483,000
JPMorgan Chase Bank N.A.
03/18/26
(822
)
EUR
62,746
CZK
1,528,000
Royal Bank of Canada
03/18/26
(423
)
EUR
183,227
CZK
4,453,000
State Street Bank and Trust Co.
03/18/26
(799
)
EUR
403,038
HUF
156,902,000
Barclays Bank PLC
03/18/26
(2,226
)
EUR
172,607
HUF
67,958,000
HSBC Bank PLC
03/18/26
(3,273
)
EUR
182,988
HUF
70,967,000
HSBC Bank PLC
03/18/26
(190
)
EUR
95,269
HUF
36,956,860
Morgan Stanley & Co. International PLC
03/18/26
(127
)
EUR
182,372
HUF
71,217,000
Royal Bank of Canada
03/18/26
(1,676
)
EUR
63,489
NOK
762,000
State Street Bank and Trust Co.
03/18/26
(714
)
EUR
2,350,477
PLN
9,988,000
Goldman Sachs International
03/18/26
(9,487
)
EUR
184,590
SEK
2,008,000
Citibank N.A.
03/18/26
(1,272
)
EUR
58,744
SEK
635,881
Goldman Sachs International
03/18/26
(62
)
EUR
284,647
SEK
3,092,000
Goldman Sachs International
03/18/26
(1,479
)
EUR
308,225
SEK
3,338,000
Goldman Sachs International
03/18/26
(498
)
EUR
131,130
SEK
1,429,000
Standard Chartered Bank
03/18/26
(1,182
)
GBP
280,000
USD
377,740
Goldman Sachs International
03/18/26
(383
)
INR
11,950,000
USD
132,108
HSBC Bank PLC
03/18/26
(17
)
JPY
33,403,000
USD
217,184
HSBC Bank PLC
03/18/26
(2,613
)
JPY
15,486,000
USD
99,820
JPMorgan Chase Bank N.A.
03/18/26
(343
)
MXN
7,680,000
USD
423,535
Morgan Stanley & Co. International PLC
03/18/26
(64
)
MXN
2,342,000
USD
129,627
State Street Bank and Trust Co.
03/18/26
(490
)
NZD
371,000
USD
216,576
Bank of America N.A.
03/18/26
(2,395
)
NZD
520,000
USD
300,893
Bank of America N.A.
03/18/26
(693
)
NZD
763,000
USD
442,448
Bank of America N.A.
03/18/26
(1,963
)
NZD
786,000
USD
458,399
Bank of America N.A.
03/18/26
(4,636
)
NZD
72,890
USD
42,356
Barclays Bank PLC
03/18/26
(276
)
NZD
444,000
USD
258,197
Barclays Bank PLC
03/18/26
(1,873
)
NZD
446,110
USD
259,078
Goldman Sachs International
03/18/26
(1,536
)
PHP
5,054,000
USD
85,811
Bank of America N.A.
03/18/26
(427
)
PHP
16,690,000
USD
283,892
Bank of America N.A.
03/18/26
(1,925
)
PHP
7,980,000
USD
135,171
HSBC Bank PLC
03/18/26
(354
)
PHP
12,802,000
USD
216,910
HSBC Bank PLC
03/18/26
(628
)
PHP
10,715,000
USD
182,228
Standard Chartered Bank
03/18/26
(1,205
)
PLN
285,000
EUR
67,443
Morgan Stanley & Co. International PLC
03/18/26
(170
)
Master Portfolio Schedule of Investments
35
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
 
Forward Foreign Currency Exchange Contracts (continued)
Currency Purchased
Currency Sold
Counterparty
Settlement Date
Unrealized
Appreciation
(Depreciation)
SGD
176,000
USD
137,600
Royal Bank of Canada
03/18/26
$ (31
)
TWD
6,762,000
USD
216,606
Goldman Sachs International
03/18/26
(1,670
)
TWD
16,227,100
USD
520,700
Goldman Sachs International
03/18/26
(4,908
)
USD
690,448
AUD
1,035,000
Bank of America N.A.
03/18/26
(316
)
USD
73,342
AUD
111,000
HSBC Bank PLC
03/18/26
(740
)
USD
73,095
AUD
110,000
Morgan Stanley & Co. International PLC
03/18/26
(320
)
USD
389,854
AUD
589,000
State Street Bank and Trust Co.
03/18/26
(3,248
)
USD
3,884,790
AUD
5,845,200
UBS AG
03/18/26
(16,328
)
USD
215,478
BRL
1,207,000
Barclays Bank PLC
03/18/26
(1,103
)
USD
214,844
BRL
1,200,000
HSBC Bank PLC
03/18/26
(481
)
USD
167,359
CAD
230,000
HSBC Bank PLC
03/18/26
(758
)
USD
216,472
CAD
297,000
HSBC Bank PLC
03/18/26
(619
)
USD
412,000
CAD
568,000
HSBC Bank PLC
03/18/26
(3,176
)
USD
301,288
CAD
414,000
JPMorgan Chase Bank N.A.
03/18/26
(1,323
)
USD
468,464
CAD
643,000
JPMorgan Chase Bank N.A.
03/18/26
(1,533
)
USD
680,411
CAD
934,000
JPMorgan Chase Bank N.A.
03/18/26
(2,291
)
USD
80,148
CAD
110,000
State Street Bank and Trust Co.
03/18/26
(256
)
USD
91,803
CLP
84,205,000
Morgan Stanley & Co. International PLC
03/18/26
(1,811
)
USD
217,109
COP
849,547,000
Bank of America N.A.
03/18/26
(2,344
)
USD
137,006
COP
535,958,000
BNP Paribas SA
03/18/26
(1,441
)
USD
122,896
COP
480,178,000
Goldman Sachs International
03/18/26
(1,142
)
USD
152,953
EUR
130,000
Citibank N.A.
03/18/26
(338
)
USD
443,347
EUR
377,000
JPMorgan Chase Bank N.A.
03/18/26
(1,197
)
USD
1,087,895
EUR
924,000
Morgan Stanley & Co. International PLC
03/18/26
(1,651
)
USD
263,525
GBP
197,000
Citibank N.A.
03/18/26
(1,972
)
USD
1,187,158
GBP
890,920
Toronto-Dominion Bank
03/18/26
(13,538
)
USD
217,793
INR
19,709,000
HSBC Bank PLC
03/18/26
(63
)
USD
271,736
KRW
400,484,000
Citibank N.A.
03/18/26
(6,324
)
USD
181,530
KRW
267,466,000
HSBC Bank PLC
03/18/26
(4,175
)
USD
193,214
KRW
285,541,000
HSBC Bank PLC
03/18/26
(5,040
)
USD
980,815
MXN
18,012,250
Standard Chartered Bank
03/18/26
(12,373
)
USD
550,150
PHP
32,753,210
Goldman Sachs International
03/18/26
(3,193
)
USD
216,606
SGD
278,000
Goldman Sachs International
03/18/26
(690
)
USD
237,305
SGD
304,000
HSBC Bank PLC
03/18/26
(314
)
USD
278,522
THB
8,813,000
HSBC Bank PLC
03/18/26
(2,653
)
USD
217,061
THB
6,832,000
Standard Chartered Bank
03/18/26
(911
)
USD
690,362
THB
21,667,000
Standard Chartered Bank
03/18/26
(915
)
USD
58,536
IDR
980,328,473
Goldman Sachs International
03/25/26
(48
)
 
 
 
 
 
 
(165,979
)
 
$ 44,160
Centrally Cleared Credit Default Swaps — Sell Protection 
Reference Obligation/Index
Financing
Rate Received
by the Master Portfolio
Payment
Frequency
Termination
Date
Credit
Rating(a)
Notional
Amount (000)(b)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
CDX.NA.HY.45.V1
5.00
% 
Quarterly
12/20/30
B-
USD
13,186
$ 1,026,133
$ 912,478
$ 113,655
 
(a)
Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.
(b)
The maximum potential amount the Master Portfolio may pay should a negative credit event take place as defined under the terms of the agreement.
Centrally Cleared Inflation Swaps 
Paid by the Master Portfolio
Received by the Master Portfolio
Termination
Date
Notional
Amount (000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Reference
Frequency
Rate
Frequency
 
2.59%
At Termination
US CPI for All Urban
Consumers NSA
At Termination
08/28/35
USD
660
$ (9,118
)
$ 293
$ (9,411
)
36
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
 
Centrally Cleared Inflation Swaps (continued)
Paid by the Master Portfolio
Received by the Master Portfolio
Termination
Date
Notional
Amount (000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Reference
Frequency
Rate
Frequency
 
2.59%
At Termination
US CPI for All Urban
Consumers NSA
At Termination
09/03/35
USD
350
$ (4,914
)
$ 339
$ (5,253
)
2.55%
At Termination
US CPI for All Urban
Consumers NSA
At Termination
09/18/35
USD
340
(3,476
)
7
(3,483
)
2.54%
At Termination
US CPI for All Urban
Consumers NSA
At Termination
09/19/35
USD
690
(6,489
)
14
(6,503
)
2.56%
At Termination
US CPI for All Urban
Consumers NSA
At Termination
09/22/35
USD
630
(7,120
)
904
(8,024
)
2.53%
At Termination
US CPI for All Urban
Consumers NSA
At Termination
10/09/35
USD
350
(3,238
)
62
(3,300
)
2.47%
At Termination
US CPI for All Urban
Consumers NSA
At Termination
11/18/35
USD
1,020
(4,917
)
21
(4,938
)
1.97%
At Termination
Eurostat Eurozone HICP Ex
Tobacco Unrevised
At Termination
12/15/35
EUR
410
(2,558
)
(29
)
(2,529
)
1.97%
At Termination
Eurostat Eurozone HICP Ex
Tobacco Unrevised
At Termination
12/15/35
EUR
410
(2,499
)
10
(2,509
)
1.97%
At Termination
Eurostat Eurozone HICP Ex
Tobacco Unrevised
At Termination
12/15/35
EUR
410
(2,396
)
98
(2,494
)
 
$ (46,725
)
$ 1,719
$ (48,444
)
Centrally Cleared Interest Rate Swaps 
Paid by the Master Portfolio
Received by the Master Portfolio
Effective
Date
Termination
Date
Notional
Amount (000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Rate
Frequency
Rate
Frequency
6-mo. EURIBOR, 2.11%
Semi-Annual
2.22%
Annual
03/18/26
03/18/28
EUR
15,870
$ (29,239
)
$ 3,990
$ (33,229
)
6-mo. EURIBOR, 2.11%
Semi-Annual
2.35%
Annual
03/18/26
03/18/28
EUR
31,280
29,745
(5,263
)
35,008
3.22%
Annual
1-day SOFR, 3.87%
Annual
03/18/26
03/18/28
USD
121,866
131,505
(75,803
)
207,308
3.47%
Annual
1-day SONIA, 3.73%
Annual
03/18/26
03/18/28
GBP
49,069
(4,084
)
(11,831
)
7,747
Tokyo Overnight Average Rate,
0.73%
Annual
1.11%
Annual
03/18/26
03/18/28
JPY
1,317,992
(21,345
)
40
(21,385
)
Tokyo Overnight Average Rate,
0.73%
Annual
1.13%
Annual
03/18/26
03/18/28
JPY
5,843,000
(76,961
)
178
(77,139
)
2.31%
Annual
6-mo. EURIBOR, 2.11%
Semi-Annual
03/18/26
03/18/29
EUR
15,120
53,950
(8,685
)
62,635
2.45%
Annual
6-mo. EURIBOR, 2.11%
Semi-Annual
03/18/26
03/18/29
EUR
6,140
(5,926
)
(2,203
)
(3,723
)
1-day CORRA, 2.25%
Semi-Annual
2.49%
Semi-Annual
03/18/26
03/18/29
CAD
13,520
(46,160
)
5,035
(51,195
)
3.23%
Annual
1-day SOFR, 3.87%
Annual
03/18/26
03/18/29
USD
12,760
32,722
(8,218
)
40,940
1-day SONIA, 3.73%
Annual
3.52%
Annual
03/18/26
03/18/29
GBP
13,610
(1,545
)
7,260
(8,805
)
1-day SONIA, 3.73%
Annual
3.57%
Annual
03/18/26
03/18/29
GBP
3,600
5,434
2,562
2,872
3-mo. BBSW, 3.74%
Quarterly
4.08%
Quarterly
03/18/26
03/18/29
AUD
3,960
(4,862
)
26
(4,888
)
2.49%
Annual
6-mo. EURIBOR, 2.11%
Semi-Annual
03/18/26
03/18/31
EUR
6,600
43,190
(4,694
)
47,884
6-mo. EURIBOR, 2.11%
Semi-Annual
2.62%
Annual
03/18/26
03/18/31
EUR
30
11
(32
)
43
1-day SOFR, 3.87%
Annual
3.35%
Annual
03/18/26
03/18/31
USD
39,707
(223,674
)
(126,331
)
(97,343
)
3.49%
Annual
1-day SOFR, 3.87%
Annual
03/18/26
03/18/31
USD
3,890
(3,254
)
1,677
(4,931
)
1-day SONIA, 3.73%
Annual
3.65%
Annual
03/18/26
03/18/31
GBP
8,703
(4,666
)
11,895
(16,561
)
3.72%
Annual
1-day SONIA, 3.73%
Annual
03/18/26
03/18/31
GBP
5,880
(21,520
)
14,599
(36,119
)
1.80%
Annual
Tokyo Overnight Average Rate,
0.73%
Annual
03/18/26
03/18/36
JPY
284,530
19,666
33
19,633
1.80%
Annual
Tokyo Overnight Average Rate,
0.73%
Annual
03/18/26
03/18/36
JPY
1,247,000
86,553
145
86,408
6-mo. EURIBOR, 2.11%
Semi-Annual
2.82%
Annual
03/18/26
03/18/36
EUR
3,480
(50,415
)
(5,985
)
(44,430
)
6-mo. EURIBOR, 2.11%
Semi-Annual
2.83%
Annual
03/18/26
03/18/36
EUR
7,838
(104,338
)
2,601
(106,939
)
2.92%
Annual
6-mo. EURIBOR, 2.11%
Semi-Annual
03/18/26
03/18/36
EUR
7,050
27,648
26,547
1,101
1-day SOFR, 3.87%
Annual
3.68%
Annual
03/18/26
03/18/36
USD
21,847
(242,727
)
12,976
(255,703
)
1-day SOFR, 3.87%
Annual
3.79%
Annual
03/18/26
03/18/36
USD
2,330
(4,655
)
(285
)
(4,370
)
1-day SONIA, 3.73%
Annual
4.02%
Annual
03/18/26
03/18/36
GBP
34,730
10,626
118,326
(107,700
)
1-day SONIA, 3.73%
Annual
4.05%
Annual
03/18/26
03/18/36
GBP
3,280
13,667
(12,997
)
26,664
3.13%
Annual
6-mo. EURIBOR, 2.11%
Semi-Annual
03/18/26
03/18/56
EUR
3,465
99,867
(12,203
)
112,070
3.13%
Annual
6-mo. EURIBOR, 2.11%
Semi-Annual
03/18/26
03/18/56
EUR
1,620
48,569
4,273
44,296
Master Portfolio Schedule of Investments
37
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
 
Centrally Cleared Interest Rate Swaps (continued)
Paid by the Master Portfolio
Received by the Master Portfolio
Effective
Date
Termination
Date
Notional
Amount (000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
Rate
Frequency
Rate
Frequency
4.02%
Annual
1-day SOFR, 3.87%
Annual
03/18/26
03/18/56
USD
7,500
$ 187,136
$ 2,866
$ 184,270
4.49%
Annual
1-day SONIA, 3.73%
Annual
03/18/26
03/18/56
GBP
14,010
(86,840
)
(109,818
)
22,978
 
 
$ (141,922
)
$ (169,319
)
$ 27,397
Balances Reported in the Statement of Assets and Liabilities for Centrally Cleared Swaps 
Description

Premiums
Paid

Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
Centrally Cleared Swaps(a)
$ 1,129,255
$ (384,377
)
$ 1,015,512
$ (922,904
)
 
(a)
Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Master Portfolio Schedule of Investments. Only current day’s variation margin is reported
within the Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows: 
 
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)
$ —
$ —
$ —
$ —
$ 31,175
$ —
$ 31,175
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange
contracts
—
—
—
210,139
—
—
210,139
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)
—
113,655
—
—
901,857
—
1,015,512
 
$ —
$ 113,655
$ —
$ 210,139
$ 933,032
$ —
$ 1,256,826
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)
$ —
$ —
$ —
$ —
$ 897,308
$ —
$ 897,308
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange
contracts
—
—
—
165,979
—
—
165,979
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)
—
—
—
—
874,460
48,444
922,904
 
$ —
$ —
$ —
$ 165,979
$ 1,771,768
$ 48,444
$ 1,986,191
 
(a)
Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Master Portfolio Schedule of Investments. In the
Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in
net unrealized appreciation (depreciation).
For the period ended December 31, 2025, the effect of derivative financial instruments in the Statement of Operations was as follows: 
 
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Net Realized Gain (Loss) from:
Futures contracts
$ —
$ —
$ —
$ —
$ (1,594,368
)
$ —
$ (1,594,368
)
Forward foreign currency exchange contracts
—
—
—
(411,104
)
—
—
(411,104
)
Options purchased(a)
—
(129,255
)
—
—
—
—
(129,255
)
Swaps
—
(1,023,478
)
—
—
137,055
(205,648
)
(1,092,071
)
 
$ —
$ (1,152,733
)
$ —
$ (411,104
)
$ (1,457,313
)
$ (205,648
)
$ (3,226,798
)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts
$ —
$ —
$ —
$ —
$ 190,416
$ —
$ 190,416
38
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
 
 
Commodity
Contracts
Credit
Contracts
Equity
Contracts
Foreign
Currency
Exchange
Contracts
Interest
Rate
Contracts
Other
Contracts
Total
Forward foreign currency exchange contracts
$ —
$ —
$ —
$ 11,563
$ —
$ —
$ 11,563
Swaps
—
300,968
—
—
171,620
(48,798
)
423,790
 
$ —
$ 300,968
$ —
$ 11,563
$ 362,036
$ (48,798
)
$ 625,769
 
(a)
Options purchased are included in net realized gain (loss) from investments — unaffiliated.
Average Quarterly Balances of Outstanding Derivative Financial Instruments 
Futures contracts:
Average notional value of contracts — long
$161,556,295
Average notional value of contracts — short
11,605,359
Forward foreign currency exchange contracts:
Average amounts purchased — in USD
36,795,886
Average amounts sold — in USD
39,558,661
Options:
Average notional value of swaption contracts purchased
2,575,000
Credit default swaps:
Average notional value — buy protection
27,787,091
Average notional value — sell protection
25,912,478
Interest rate swaps:
Average notional value — pays fixed rate
368,945,090
Average notional value — receives fixed rate
335,696,275
Inflation swaps:
Average notional value — pays fixed rate
9,800,246
Average notional value — receives fixed rate
1,255,032
For more information about the Master Portfolio’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Derivative Financial Instruments — Offsetting as of Period End
The Master Portfolio’s derivative assets and liabilities (by type) were as follows: 
 
Assets
Liabilities
Derivative Financial Instruments
Futures contracts
$ 6,751
$ 167,609
Forward foreign currency exchange contracts
210,139
165,979
Swaps — centrally cleared
1,223
—
Total derivative assets and liabilities in the Statement of Assets and Liabilities
218,113
333,588
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)
(7,974
)
(167,609
)
Total derivative assets and liabilities subject to an MNA
$ 210,139
$ 165,979
The following table presents the Master Portfolio’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Master Portfolio: 
Counterparty
Derivative
Assets
Subject to
an MNA by
Counterparty
Derivatives
Available
for Offset(a)
Non-Cash
Collateral
Received(b)
Cash
Collateral
Received(b)
Net Amount
of Derivative
Assets(c)(d)
Bank of America N.A.
$ 12,045
$ (12,045
)
$ —
$ —
$ —
Barclays Bank PLC
10,661
(10,488
)
—
—
173
BNP Paribas SA
545
(545
)
—
—
—
Citibank N.A.
65,276
(13,743
)
—
—
51,533
Deutsche Bank AG
1,056
(1,056
)
—
—
—
Goldman Sachs International
24,510
(24,510
)
—
—
—
HSBC Bank PLC
4,319
(4,319
)
—
—
—
JPMorgan Chase Bank N.A.
20,591
(8,866
)
—
—
11,725
Morgan Stanley & Co. International PLC
42,427
(4,539
)
—
—
37,888
Natwest Markets PLC
18,936
—
—
—
18,936
Master Portfolio Schedule of Investments
39
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
 
Counterparty
Derivative
Assets
Subject to
an MNA by
Counterparty
Derivatives
Available
for Offset(a)
Non-Cash
Collateral
Received(b)
Cash
Collateral
Received(b)
Net Amount
of Derivative
Assets(c)(d)
Societe Generale
$ 327
$ —
$ —
$ —
$ 327
Standard Chartered Bank
690
(690
)
—
—
—
State Street Bank and Trust Co.
4,522
(4,522
)
—
—
—
UBS AG
4,234
(4,234
)
—
—
—
 
$ 210,139
$ (89,557
)
$ —
$ —
$ 120,582
 
Counterparty
Derivative
Liabilities
Subject to
an MNA by
Counterparty
Derivatives
Available
for Offset(a)
Non-Cash
Collateral
Pledged(b)
Cash
Collateral
Pledged(b)
Net Amount
of Derivative
Liabilities(c)(e)
Bank of America N.A.
$ 14,699
$ (12,045
)
$ —
$ —
$ 2,654
Barclays Bank PLC
10,488
(10,488
)
—
—
—
BNP Paribas SA
1,441
(545
)
—
—
896
Citibank N.A.
13,743
(13,743
)
—
—
—
Deutsche Bank AG
3,243
(1,056
)
—
—
2,187
Goldman Sachs International
29,777
(24,510
)
—
—
5,267
HSBC Bank PLC
25,094
(4,319
)
—
—
20,775
JPMorgan Chase Bank N.A.
8,866
(8,866
)
—
—
—
Morgan Stanley & Co. International PLC
4,539
(4,539
)
—
—
—
Royal Bank of Canada
2,130
—
—
—
2,130
Standard Chartered Bank
16,586
(690
)
—
—
15,896
State Street Bank and Trust Co.
5,507
(4,522
)
—
—
985
Toronto-Dominion Bank
13,538
—
—
—
13,538
UBS AG
16,328
(4,234
)
—
—
12,094
 
$ 165,979
$ (89,557
)
$ —
$ —
$ 76,422
 
(a)
The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.
(b)
Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes.
(c)
Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.
(d)
Net amount represents the net amount receivable from the counterparty in the event of default.
(e)
Net amount represents the net amount payable due to the counterparty in the event of default. 
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Master Portfolio’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Master Portfolio’s financial instruments categorized in the fair value hierarchy. The breakdown of the Master Portfolio’s financial instruments into major categories is disclosed in the Schedule of Investments above. 
 
Level 1
Level 2
Level 3
Total
Assets
Investments 
Long-Term Investments 
Asset-Backed Securities
$ —
$ 38,560,919
$ —
$ 38,560,919
Common Stocks
—
—
1
1
Corporate Bonds
—
272,052,113
—
272,052,113
Foreign Agency Obligations
—
4,310,285
—
4,310,285
Municipal Bonds
—
3,429,337
—
3,429,337
Non-Agency Mortgage-Backed Securities
—
93,788,225
—
93,788,225
Preferred Securities
Capital Trusts
—
375,186
—
375,186
U.S. Government Sponsored Agency Securities
—
201,970,974
—
201,970,974
U.S. Treasury Obligations
—
125,219,090
—
125,219,090
40
2025 BlackRock Annual Financial Statements and Additional Information
Schedule of Investments (continued)
December 31, 2025
Advantage CoreAlpha Bond Master Portfolio
 
Fair Value Hierarchy as of Period End (continued)
 
Level 1
Level 2
Level 3
Total
Short-Term Securities 
Money Market Funds
$ 29,358,297
$ —
$ —
$ 29,358,297
U.S. Government Sponsored Agency Securities
—
4,632,986
—
4,632,986
 
$29,358,297
$744,339,115
$1
$773,697,413
Derivative Financial Instruments(a)
Assets 
Credit Contracts
$ —
$ 113,655
$ —
$ 113,655
Foreign Currency Exchange Contracts
—
210,139
—
210,139
Interest Rate Contracts
31,175
901,857
—
933,032
Liabilities 
Foreign Currency Exchange Contracts
—
(165,979
)
—
(165,979
)
Interest Rate Contracts
(897,308
)
(874,460
)
—
(1,771,768
)
Other Contracts
—
(48,444
)
—
(48,444
)
 
$(866,133
)
$136,768
$—
$(729,365
)
 
(a)
Derivative financial instruments are swaps, futures contracts and forward foreign currency exchange contracts. Swaps, futures contracts and forward foreign currency exchange
contracts are valued at the unrealized appreciation (depreciation) on the instrument.
See notes to financial statements.
Master Portfolio Schedule of Investments
41
Statement of Assets and Liabilities
December 31, 2025
 
 
Advantage
CoreAlpha
Bond
Master Portfolio
ASSETS
Investments, at value — unaffiliated(a)(b)
$ 744,339,116
Investments, at value — affiliated(c)
29,358,297
Cash pledged:
Futures contracts
2,823,000
Centrally cleared swaps
3,388,000
Foreign currency, at value(d)
3,585,929
Receivables:
Securities lending income — affiliated
7,555
Contributions from investors
583,740
Dividends — affiliated
21,302
Interest — unaffiliated
5,856,880
Principal paydowns
947
Variation margin on futures contracts
6,751
Variation margin on centrally cleared swaps
1,223
Unrealized appreciation on forward foreign currency exchange contracts
210,139
Prepaid expenses
5,348
Total assets
790,188,227
LIABILITIES
Collateral on securities loaned
19,913,333
Payables:
Investments purchased
46,714,148
Investment advisory fees
146,964
Trustees’ fees
318
Professional fees
47,991
Variation margin on futures contracts
167,609
Unrealized depreciation on forward foreign currency exchange contracts
165,979
Total liabilities
67,156,342
Commitments and contingent liabilities
NET ASSETS
$ 723,031,885
NET ASSETS CONSIST OF
Investors’ capital
$ 746,362,308
Net unrealized appreciation (depreciation)
(23,330,423)
NET ASSETS
$ 723,031,885
(a) Investments, at cost—unaffiliated
$766,975,248
(b) Securities loaned, at value
$19,048,401
(c) Investments, at cost—affiliated
$29,346,625
(d) Foreign currency, at cost
$3,562,526
See notes to financial statements.
42
2025 BlackRock Annual Financial Statements and Additional Information
Statement of Operations
Year Ended December 31, 2025
 
 
Advantage
CoreAlpha
Bond
Master Portfolio
INVESTMENT INCOME
Dividends — affiliated
$359,521
Interest — unaffiliated
34,162,014
Securities lending income — affiliated — net
104,857
Payment-in-kind interest — unaffiliated
5,597
Total investment income
34,631,989
EXPENSES
Investment advisory
1,706,042
Professional
47,390
Trustees
10,890
Total expenses
1,764,322
Less fees waived and/or reimbursed by the Manager
(64,144
)
Total expenses after fees waived and/or reimbursed
1,700,178
Net investment income
32,931,811
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated
(3,555,661
)
Investments — affiliated
(2,020
)
Forward foreign currency exchange contracts
(411,104
)
Foreign currency transactions
204,368
Futures contracts
(1,594,368
)
Swaps
(1,092,071
)
 
(6,450,856
)
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated
20,272,714
Investments — affiliated
394
Forward foreign currency exchange contracts
11,563
Foreign currency translations
123,072
Futures contracts
190,416
Swaps
423,790
 
21,021,949
Net realized and unrealized gain
14,571,093
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
$47,502,904
See notes to financial statements.
Master Portfolio Statement of Operations
43
Statements of Changes in Net Assets
 
 
Advantage
CoreAlpha Bond
Master Portfolio
 
Year Ended
12/31/25
Year Ended
12/31/24
 
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income
$32,931,811
$31,351,971
Net realized loss
(6,450,856
)
(5,246,735
)
Net change in unrealized appreciation (depreciation)
21,021,949
(13,156,042
)
Net increase in net assets resulting from operations
47,502,904
12,949,194
CAPITAL TRANSACTIONS
Proceeds from contributions
93,565,691
129,247,215
Value of withdrawals
(116,723,567
)
(162,294,199
)
Net decrease in net assets derived from capital transactions
(23,157,876
)
(33,046,984
)
NET ASSETS
Total increase (decrease) in net assets
24,345,028
(20,097,790
)
Beginning of year
698,686,857
718,784,647
End of year
$723,031,885
$698,686,857
See notes to financial statements.
44
2025 BlackRock Annual Financial Statements and Additional Information
Financial Highlights
 
 
Advantage CoreAlpha Bond Master Portfolio
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Total Return
Total return
6.84
%
2.13
%
5.41
%
(14.21
)%
(1.88
)%
Ratios to Average Net Assets(a)
Total expenses
0.25
%
0.25
%
0.25
%
0.24
%
0.24
%
Total expenses after fees waived and/or reimbursed
0.24
%
0.24
%
0.24
%
0.23
%
0.23
%
Net investment income
4.63
%
4.49
%
3.63
%
2.56
%
2.05
%
Supplemental Data
Net assets, end of year (000)
$723,032
$698,687
$718,785
$1,039,366
$1,488,952
Portfolio turnover rate(b)
183
%
142
%
201
%
205
%
219
%
 
(a)
Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.
(b)
Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
 
 
Year Ended
12/31/25
Year Ended
12/31/24
Year Ended
12/31/23
Year Ended
12/31/22
Year Ended
12/31/21
 
Portfolio turnover rate (excluding MDRs)
103
%
96
%
118
%
107
%
123
%
See notes to financial statements.
Master Portfolio Financial Highlights
45
Notes to Financial Statements
 
1.
ORGANIZATION
Master Investment Portfolio II (“MIP II”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. MIP II is organized as a Delaware statutory trust. Advantage CoreAlpha Bond Master Portfolio (the “Master Portfolio”) is a series of MIP II. The Master Portfolio is classified as a diversified fund under the 1940 Act.
The Master Portfolio, together with certain other registered investment companies advised by BlackRock Advisors, LLC (“BAL” or the “Manager”) or its affiliates, is included in a complex of funds referred to as the BlackRock Fixed-Income 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 Master Portfolio 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 (the “trade dates”).  Realized gains and losses on investment transactions are determined using the specific identification method.  Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value.  Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.  Interest income, including amortization and accretion of premiums and discounts on debt securities, and payment-in-kind interest are recognized daily on an accrual basis.
Foreign Currency Translation: The Master Portfolio’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.
The Master Portfolio does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Master Portfolio reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes. The Master Portfolio has elected to treat realized gains (losses) from certain forward foreign currency exchange contracts as capital gain (loss) for U.S. federal income tax purposes. 
Cash: The Master Portfolio may maintain cash at its custodian which, at times may exceed United States federally insured limits. The Master Portfolio may, at times, have outstanding cash disbursements that exceed deposited cash amounts at the custodian during the reporting period. The Master Portfolio is obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statement of Operations.
Collateralization: If required by an exchange or counterparty agreement, the Master Portfolio may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by the Board of Trustees of MIP II (the “Board”), the trustees who are not “interested persons” of the Master Portfolio, as defined in the 1940 Act (“Independent Trustees”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.
The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Master Portfolio, as applicable. Deferred compensation liabilities, if any, are included in the Trustees’ and Officer’s fees payable in the Statement of Assets and Liabilities and will remain as a liability of the Master Portfolio until such amounts are distributed in accordance with the Plan. Net appreciation (depreciation) in the value of participants’ deferral accounts is allocated among the participating funds in the BlackRock Fixed-Income Complex and reflected as Trustees and Officer expense on the Statement of Operations. The Trustees and Officer expense may be negative as a result of a decrease in value of the deferred accounts.
Indemnifications: In the normal course of business, the Master Portfolio enters into contracts that contain a variety of representations that provide general indemnification. The Master Portfolio’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Master Portfolio, which cannot be predicted with any certainty.
Other:  Expenses directly related to the Master Portfolio are charged to the Master Portfolio. 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 Master Portfolio’s Chief Operating Decision Maker (“CODM”) and is responsible for assessing performance and allocating resources with respect to the Master Portfolio. The CODM has concluded that the Master Portfolio operates as a single operating segment since the Master Portfolio
46
2025 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements  (continued)
 
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 Master Portfolio’s financial statements.
Recent Accounting Standard: The Master Portfolio 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 Master Portfolio’s adoption of the new standard did not have a material impact on financial statement disclosures and did not affect the Master Portfolio’s financial position or results of operations.
3.
INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS
Investment Valuation Policies:  The Master Portfolio’s investments are valued at fair value (also referred to as “market value” within the  financial statements) each day that the Master Portfolio is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board has approved the designation of the Master Portfolio’s Manager as the valuation designee for the Master Portfolio. The Master Portfolio determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Master Portfolio’s assets and liabilities:
•Equity investments (except ETF options, equity index options or those that are customized) traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last trade or last available bid (long positions) or ask (short positions) price.
•Fixed-income investments and certain derivative instruments for which market quotations are readily available are generally valued using the last available bid price 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”).
•Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.
•Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE based on that day’s prevailing forward exchange rate for the underlying currencies.
•Interest rate, credit default, inflation and currency swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate market data and discounted cash flows. Total return and equity swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using models that incorporate market trades and fair value of the underlying reference instruments.
Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the Master Portfolio uses current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which occurs after the close of the local markets.
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that the Master Portfolio 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.  
Master Portfolio Notes to Financial Statements
47
Notes to Financial Statements  (continued)
 
For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs:
(i) recent market transactions, including secondary market transactions, merger or acquisition activity and subsequent rounds of financing in the underlying investment or comparable issuers
(ii) recapitalizations and other transactions across the capital structure
(iii) market or relevant indices multiples of comparable issuers
(iv) future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks
(v) quoted prices for similar investments or assets in active markets
(vi) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates
(vii) audited or unaudited financial statements, investor communications and Private Company financial or operational metrics
(viii) relevant market news and other public sources.
Investments in series of preferred stock issued by Private Companies are typically valued utilizing a market approach to determine the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.
Private Companies are not subject to public company disclosure, timing, and reporting standards applicable to other investments held by the Master Portfolio. Certain information made available by a Private Company is as of a date that is earlier than the date the Master Portfolio is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Master Portfolio could receive upon the sale of the investment.
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 Master Portfolio 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 Private Companies that may not have a secondary market and/or may have a limited number of investors.  The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
4.
SECURITIES AND OTHER INVESTMENTS
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
48
2025 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements  (continued)
 
issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States, but are supported by the right of the issuer to borrow from the U.S. Treasury.
Non-agency mortgage-backed securities are securities issued by non-governmental issuers and have no direct or indirect government guarantees of payment and are subject to various risks. Non-agency mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair a borrower’s ability to repay its loans.
Multiple Class Pass-Through Securities: Multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities, may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by a pool of residential or commercial mortgage loans or Mortgage Assets. The payments on these are used to make payments on the CMOs or multiple pass-through securities. Multiple class pass-through securities represent direct ownership interests in the Mortgage Assets. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, a fund’s initial investment in the IOs may not fully recoup.
Capital Securities and Trust Preferred Securities: Capital securities, including trust preferred securities, are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics. In the case of trust preferred securities, an affiliated business trust of a corporation issues these securities, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured with either a fixed or adjustable coupon that can have either a perpetual or stated maturity date. For trust preferred securities, the issuing bank or corporation pays interest to the trust, which is then distributed to holders of these securities as a dividend. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. These securities generally are rated below that of the issuing company’s senior debt securities and are freely callable at the issuer’s option.
Forward Commitments, When-Issued and Delayed Delivery Securities: The Master Portfolio may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Master Portfolio may purchase securities under such conditions with the intention of actually acquiring them but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Master Portfolio may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Master Portfolio assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Master Portfolio’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions. These types of securities may be considered unfunded and may obligate the Master Portfolio to make future cash payments. An unfunded commitment is marked-to-market and any unrealized appreciation (depreciation) is separately presented in the Statement of Assets and Liabilities and Statement of Operations.
TBA Commitments: TBA commitments are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. When entering into TBA commitments, a fund may take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date, if there are expenses or delays in connection with the TBA transactions, or if the counterparty fails to complete the transaction.
In order to better define contractual rights and to secure rights that will help a fund mitigate its counterparty risk, TBA commitments may be entered into by a fund under Master Securities Forward Transaction Agreements (each, an “MSFTA”). An MSFTA typically contains, among other things, collateral posting terms and netting provisions in the event of default and/or termination event. The collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of the collateral currently pledged by a fund and the counterparty. Cash collateral that has been pledged to cover the obligations of a fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral for TBA commitments or cash received as collateral for TBA commitments, respectively. Non-cash collateral pledged by a fund, if any, is noted in the Schedule of Investments. Typically, a fund is permitted to sell, re-pledge or use the collateral it receives; however, the counterparty is not permitted to do so. To the extent amounts due to a fund are not fully collateralized, contractually or otherwise, a fund bears the risk of loss from counterparty non-performance.
Mortgage Dollar Roll Transactions: The Master Portfolio may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (i.e., same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, a fund is not entitled to receive interest and principal payments on the securities sold. Mortgage dollar roll transactions are treated as purchases and sales and a fund realizes gains and losses on these transactions. Mortgage dollar rolls involve the risk that the market value of the securities that a fund is required to purchase may decline below the agreed upon repurchase price of those securities.
Securities Lending: The Master Portfolio may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Master Portfolio collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Master Portfolio is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Master Portfolio and any additional required collateral is delivered to the Master
Master Portfolio Notes to Financial Statements
49
Notes to Financial Statements  (continued)
 
Portfolio, or excess collateral returned by the Master Portfolio, on the next business day. During the term of the loan, the Master Portfolio is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.
As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Institutional Trust Company, N.A. (“BTC”), if any, is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Master Portfolio, except in the event of borrower default. The securities on loan, if any, are disclosed in the Master Portfolio’s Schedule of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the  Statement of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.
Securities lending transactions are entered into by the Master Portfolio under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Master Portfolio, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Master Portfolio can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.
As of period end, the following table is a summary of the Master Portfolio’s securities on loan by counterparty which are subject to offset under an MSLA: 
Counterparty
Securities
Loaned at Value
Cash Collateral
Received(a)
Non-Cash Collateral
Received, at Fair Value(a)
Net
Amount
Barclays Bank PLC
$ 2,228,983
$ (2,228,983
)
$ —
$ —
Barclays Capital, Inc.
388,233
(388,233
)
—
—
BMO Capital Markets Corp.
924,585
(924,585
)
—
—
BNP Paribas SA
2,281,673
(2,281,673
)
—
—
BofA Securities, Inc.
317,764
(317,764
)
—
—
Citadel Clearing LLC
351,490
(351,490
)
—
—
Citigroup Global Markets, Inc.
569,051
(569,051
)
—
—
Deutsche Bank Securities, Inc.
1,698,992
(1,698,992
)
—
—
Goldman Sachs & Co. LLC
1,308,726
(1,308,726
)
—
—
J.P. Morgan Securities LLC
2,384,157
(2,384,157
)
—
—
Mitsubishi UFJ Securities Holdings Co., Ltd.
301,566
(301,566
)
—
—
Morgan Stanley
476,369
(476,369
)
—
—
National Bank of Canada
1,603,918
(1,603,918
)
—
—
Pershing LLC
400,161
(400,161
)
—
—
RBC Capital Markets LLC
1,800,787
(1,800,787
)
—
—
Scotia Capital (USA), Inc.
182,915
(182,915
)
—
—
Scotia Capital, Inc.
41,342
(41,342
)
—
—
State Street Bank & Trust Co.
183,304
(183,304
)
—
—
UBS AG
735,900
(735,900
)
—
—
UBS Securities LLC
247,197
(247,197
)
—
—
Wells Fargo Bank N.A.
471,395
(471,395
)
—
—
Wells Fargo Securities LLC
149,893
(149,893
)
—
—
 
$ 19,048,401
$ (19,048,401
)
$ —
$ —
 
(a)
Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Master Portfolio is disclosed in the
Master Portfolio’s Statement of Assets and Liabilities.
The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Master Portfolio benefits from a borrower default indemnity provided by BlackRock Finance, Inc. BlackRock Finance, Inc.’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Master Portfolio could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Master Portfolio.
5.
DERIVATIVE FINANCIAL INSTRUMENTS
The Master Portfolio engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Master Portfolio and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
50
2025 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements  (continued)
 
Futures contracts are exchange-traded agreements between the Master Portfolio and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Master Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Master Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).
A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Master Portfolio are denominated and in some cases, may be used to obtain exposure to a particular market. The contracts are traded OTC and not on an organized exchange.
The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount reflected in the Statement of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statement of Assets and Liabilities. The Master Portfolio’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain netted against any collateral held by the Master Portfolio.
Options: The Master Portfolio may purchase and write call and put options to increase or decrease its exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.
A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.
Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value – unaffiliated and options written at value, respectively, in the Statement of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statement of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statement of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Master Portfolio writes a call option, such option is typically “covered,” meaning that it holds the underlying instrument subject to being called by the option counterparty. When the Master Portfolio writes a put option, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statement of Assets and Liabilities.
In purchasing and writing options, the Master Portfolio bears the risk of an unfavorable change in the value of the underlying instrument or the risk that it may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Master Portfolio purchasing or selling a security when it otherwise would not, or at a price different from the current market value.
Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Master Portfolio and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).
For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of  Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement  of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Master Portfolio’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.
In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the CCP becomes the Master Portfolio’s counterparty on the swap. The Master Portfolio is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Master Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of  Assets and Liabilities. Pursuant to the contract, the Master Portfolio agrees to receive from or pay to the broker variation margin. Variation margin is recorded as unrealized
Master Portfolio Notes to Financial Statements
51
Notes to Financial Statements  (continued)
 
appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty are amortized over the term of the contract and recorded as realized gains (losses) in the Statement of Operations, including those at termination.
•Credit default swaps — Credit default swaps are entered into to manage exposure to the market or certain sectors of the market, to reduce risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which a fund is not otherwise exposed (credit risk).
The Master Portfolio may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Master Portfolio will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Master Portfolio will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.
•Interest rate swaps — Interest rate swaps are entered into to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).
Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In more complex interest rate swaps, the notional principal amount may decline (or amortize) over time.
•Forward swaps — The Master Portfolio may enter into forward interest rate swaps and forward total return swaps. In a forward swap, the Master Portfolio and the counterparty agree to make periodic net payments beginning on a specified date or a net payment at termination.
•Inflation swaps — Inflation swaps are entered into to gain or reduce exposure to inflation (inflation risk). In an inflation swap, one party makes fixed interest payments on a notional principal amount in exchange for another party’s variable payments based on an inflation index, such as the Consumer Price Index.
Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.
Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Master Portfolio may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract counterparties. An ISDA Master Agreement is a bilateral agreement between the Master Portfolio and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Master Portfolio may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.
Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Master Portfolio and the counterparty.
Cash collateral that has been pledged to cover obligations of the Master Portfolio and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Master Portfolio, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Master Portfolio.  Any additional required collateral is delivered to/pledged by the Master Portfolio on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. The Master Portfolio generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Master Portfolio from the counterparties are not fully collateralized, the Master Portfolio bears the risk of loss from counterparty non-performance. Likewise, to the extent the Master Portfolio has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, the Master Portfolio bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.
For financial reporting purposes, the Master Portfolio does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.
52
2025 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements  (continued)
 
6.
INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Advisory: MIP II, on behalf of the Master Portfolio, entered into an Investment Advisory Agreement with the Manager, the Master Portfolio’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 Master Portfolio’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Master Portfolio.
For such services, the Master Portfolio pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Master Portfolio’s net assets: 
Average Daily Net Assets
Investment
Advisory Fees
First $1 billion
0.24
% 
$1 billion — $3 billion
0.23
$3 billion — $5 billion
0.22
$5 billion — $10 billion
0.21
Greater than $10 billion
0.20
With respect to the Master Portfolio, the Manager entered into a sub-advisory agreement with each of BlackRock International Limited (“BIL”) and BlackRock Fund Advisors (“BFA”) (collectively, the “Sub-Advisers”), each an affiliate of the Manager. The Manager pays BIL and BFA for services they provide for that portion of the Master Portfolio for which BIL and BFA, as applicable, acts as Sub-Adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Master Portfolio to the Manager.
Expense Waivers and Reimbursements:  The fees and expenses of the MIP II’s Independent Trustees, counsel to the Independent Trustees and the Master Portfolio’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Master Portfolio. The Manager has contractually agreed to reimburse the Master Portfolio or provide an offsetting credit against the investment advisory fees paid by the Master Portfolio in an amount equal to these independent expenses through June 30, 2026. The amount waived is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2025, the amount waived was $58,280.
With respect to the Master Portfolio, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees the Master Portfolio pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2026.  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 Master Portfolio.  This amount is included in fees waived and/or reimbursed by the Manager in the  Statement of Operations. For the year ended December 31, 2025, the amount waived was $5,864.
The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Master Portfolio’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, 2026. 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 Master Portfolio.  For the year ended December 31, 2025, there were no fees waived by the Manager pursuant to this arrangement.
Securities Lending:  The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BTC, an affiliate of the Manager, to serve as securities lending agent for the Master Portfolio, subject to applicable conditions. As securities lending agent, BTC bears all operational costs directly related to securities lending, including any custodial costs. The Master Portfolio is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional or BlackRock Cash Funds: Treasury, managed by the Manager or its affiliates. However, BTC has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Master Portfolio bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. BlackRock Cash Funds: Institutional may impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money market fund. Additionally, BlackRock Cash Funds: Institutional will impose a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the amount of the fee is less than 0.01% of the value of the shares redeemed. BlackRock Cash Funds: Institutional will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If BlackRock Cash Funds: Institutional cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.
Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. The Master Portfolio retains a portion of the securities lending income and remits the remaining portion to BTC as compensation for its services as securities lending agent.
Pursuant to the current securities lending agreement, the Master Portfolio retains 82% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.
In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Fixed-Income Complex in a calendar year exceeds specified thresholds, the Master Portfolio, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85%  of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70%  of the total of securities lending income plus the collateral investment fees.
Master Portfolio Notes to Financial Statements
53
Notes to Financial Statements  (continued)
 
The share of securities lending income earned by the Master Portfolio is shown as securities lending income — affiliated — net in the Statement of Operations. For the year ended December 31, 2025, the Master Portfolio paid BTC $33,989 for securities lending agent services.
Interfund Lending: Prior to March 3, 2025, in accordance with an exemptive order (the “Order”) from the SEC, the Master Portfolio could participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Master Portfolio’s investment policies and restrictions. Effective March 3, 2025, the Interfund Lending Program was not renewed but remains available for renewal in the future.
During the period ended March 3, 2025, the Master Portfolio did not participate in the Interfund Lending Program.
Trustees and Officers:  Certain trustees and/or officers of MIP II are directors and/or officers of BlackRock or its affiliates.
7.
 PURCHASES AND SALES
For the year ended December 31, 2025, purchases and sales of investments, including paydowns/payups, mortgage dollar rolls and excluding short-term securities, were as follows: 
 
U.S. Government Securities
Other Securities
Master Portfolio Name
Purchases
Sales
Purchases
Sales
Advantage CoreAlpha Bond Master Portfolio
$ 1,206,190,839
$ 1,210,590,418
$ 142,960,843
$ 122,899,737
For the year ended December 31, 2025, purchases and sales related to mortgage dollar rolls were $585,604,743 and $585,949,132, respectively.
8.
INCOME TAX INFORMATION
The Master Portfolio is disregarded as an entity separate from its owner for tax purposes. As such, the owner of the Master Portfolio is treated as the owner of the net assets,income, expenses and realized and unrealized gains and losses of the Master Portfolio. Therefore, no U.S. federal income tax provision is required.  It is intended that the Master Portfolio’s assets will be managed so the owner of the Master Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.
The Master Portfolio 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 Master Portfolio’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 Master Portfolio’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 Master Portfolio as of December 31, 2025, 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 Master Portfolio’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 Master Portfolio’s NAV.
As of December 31, 2025, 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: 
Master Portfolio Name
Tax Cost
Gross Unrealized
Appreciation
Gross Unrealized
Depreciation
Net Unrealized
Appreciation
(Depreciation)
Advantage CoreAlpha Bond Master Portfolio
$ 796,332,324
$ 10,053,404
$ (32,717,842)
$ (22,664,438)
9.
BANK BORROWINGS
MIP II, on behalf of the Master Portfolio, 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 Master Portfolio may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Master Portfolio, 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 2026 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 December 31, 2025, the Master Portfolio did not borrow under the credit agreement.
54
2025 BlackRock Annual Financial Statements and Additional Information
Notes to Financial Statements  (continued)
 
10.
PRINCIPAL RISKS
In the normal course of business, the Master Portfolio invests in securities or other instruments and may enter into certain transactions, and such activities subject the Master Portfolio 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 Master Portfolio and its investments. The Master Portfolio’s prospectus provides details of the risks to which the Master Portfolio is subject.
The Master Portfolio may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to mandatory and discretionary liquidity fees under certain circumstances.
Market Risk: The Master Portfolio 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 Master Portfolio to reinvest in lower yielding securities. The Master Portfolio may also be exposed to reinvestment risk, which is the risk that income from the Master Portfolio’s portfolio will decline if the Master Portfolio invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below the Master Portfolio 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.
Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Master Portfolio may invest in illiquid investments. An illiquid investment is any investment that the Master Portfolio reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Master Portfolio may  experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Master Portfolio’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Master Portfolio may lose value, regardless of the individual results of the securities and other instruments in which the Master Portfolio invests. The Master Portfolio’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.
The price the Master Portfolio could receive upon the sale of any particular portfolio investment may differ from the Master Portfolio’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Master Portfolio’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Master Portfolio, and the Master Portfolio could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. 
Counterparty Credit Risk: The Master Portfolio 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 Master Portfolio 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 Master Portfolio to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Master Portfolio’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 Master Portfolio.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Master Portfolio since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Master Portfolio does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Master Portfolio.
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 Master Portfolio’s portfolio are disclosed in its Schedule of Investments.
Master Portfolio Notes to Financial Statements
55
Notes to Financial Statements  (continued)
 
The Master Portfolio 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 Master Portfolio 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 Master Portfolio’s performance.
The Master Portfolio 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 Master Portfolio invests.
The Master Portfolio invests a significant portion of  its assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. When a fund concentrates its investments in this manner, it assumes a greater risk of prepayment or payment extension by securities issuers. Changes in economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions. Investment percentages in these securities are presented in the Schedule of Investments.
Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.
11.
SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Master Portfolio 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.
56
2025 BlackRock Annual Financial Statements and Additional Information
Report of Independent Registered Public Accounting Firm
 
To the Board of Trustees of Master Investment Portfolio II and Investors of Advantage CoreAlpha Bond Master Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Advantage CoreAlpha Bond Master Portfolio (one of the series constituting Master Investment Portfolio II, referred to hereafter as the “Master Portfolio”) as of December 31, 2025, the related statement of operations for the year ended December 31, 2025, the statement of changes in net assets for each of the two years in the period ended December 31, 2025, including the related notes, and the financial highlights for each of the five years in the period ended December 31, 2025 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Master Portfolio as of December 31, 2025, 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 December 31, 2025 and the financial highlights for each of the five years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Master Portfolio’s management. Our responsibility is to express an opinion on the Master Portfolio’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 Master Portfolio in accordance with the relevant ethical requirements relating to our audit, which include standards of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, as well as U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission.
We conducted our audits of these financial statements in accordance with the auditing standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America. 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 December 31, 2025 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
February 24, 2026
We have served as the auditor of one or more BlackRock investment companies since 2000.
Master Portfolio Report of Independent Registered Public Accounting Firm
57
Additional Information
 
Changes in and Disagreements with Accountants
Not applicable.
Proxy Results
Not applicable.
Remuneration Paid to Trustees, Officers, and Others
Each of BAL and BFA has contractually agreed to reimburse, or provide offsetting credits to, the Fund/Master Portfolio for the Fund’s/Master Portfolio’s allocable portion of the fees and expenses of the independent trustees of the Trust and MIP II, counsel to such independent trustees and the independent registered public accounting firm.
General Information
Quarterly performance, shareholder reports, semi-annual and annual financial statements, current net asset value and other information regarding the Fund/Master Portfolio 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/Master Portfolio 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.
58
2025 BlackRock Annual Financial Statements and Additional Information
Additional Information (continued)
 
Fund and/or MIP II Service Providers
Investment Adviser and Administrator
BlackRock Advisors, LLC
Wilmington, DE 19809
Sub-Adviser
BlackRock Fund Advisors
San Francisco, CA 94105
BlackRock International Limited
Edinburgh, EH3 8BL
United Kingdom
Accounting Agent and Custodian
State Street Bank and Trust Company
Boston, MA 02114
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Wilmington, DE 19809
Distributor
BlackRock Investments, LLC
New York, NY 10001
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
Philadelphia, PA 19103
Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019
Address of the Fund/MIP II
100 Bellevue Parkway
Wilmington, DE 19809
Additional Information
59
Glossary of Terms Used in these Financial Statements
 
 
Currency Abbreviation 
AUD
 Australian Dollar
BRL
 Brazilian Real
CAD
 Canadian Dollar
CHF
 Swiss Franc
CLP
 Chilean Peso
COP
 Colombian Peso
CZK
 Czech Koruna
EUR
 Euro
GBP
 British Pound
HUF
 Hungarian Forint
IDR
 Indonesian Rupiah
INR
 Indian Rupee
JPY
 Japanese Yen
KRW
 South Korean Won
MXN
 Mexican Peso
NOK
 Norwegian Krone
NZD
 New Zealand Dollar
PHP
 Philippine Peso
PLN
 Polish Zloty
SEK
 Swedish Krona
SGD
 Singapore Dollar
THB
 Thai Baht
TWD
 New Taiwan Dollar
USD
 United States Dollar
ZAR
 South African Rand
 
Portfolio Abbreviation 
ABS
 Asset-Backed Security
ARB
 Airport Revenue Bonds
BAB
 Build America Bond
BBSW
 Bank Bill Swap Rate
CME
 Chicago Mercantile Exchange
CMT
 Constant Maturity Treasury
CORRA
 Overnight Bank of Canada Repo Rate
CPI
 Consumer Price Index
CVR
 Contingent Value Right
EURIBOR
 Euro Interbank Offered Rate
GO
 General Obligation Bonds
GOL
 General Obligation Ltd.
MSCI
 Morgan Stanley Capital International
PIK
 Payment-in-Kind
RB
 Revenue Bonds
REIT
 Real Estate Investment Trust
REMIC
 Real Estate Mortgage Investment Conduit
RFUCCT
 Refinitiv USD IBOR Consumer Cash Fallbacks Term
S&P
 Standard & Poor’s
SOFR
 Secured Overnight Financing Rate
SONIA
 Sterling Overnight Interbank Average Rate
STACR
 Structured Agency Credit Risk
60
2025 BlackRock Annual Financial Statements and Additional Information
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Want to know more?
blackrock.com | 800-441-7762
This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Fund unless preceded or accompanied by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.
 
 

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 – Not Applicable

 

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

 

4

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 registrants’ principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants’ 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 registrants’ 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 registrants’ 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 registrants’ securities are listed – Not Applicable

(a)(3) Section 302 Certifications are attached

(a)(4) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(5) Change in registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached

 

 

5

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrants have duly caused this report to be signed on their behalf by the undersigned, thereunto duly authorized.

BlackRock Funds VI and Master Investment Portfolio II

 

 

 By:

     

/s/ John M. Perlowski       

      

John M. Perlowski

      

Chief Executive Officer (principal executive officer) of

      

BlackRock Funds VI and Master Investment Portfolio II

Date: February 24, 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 registrants and in the capacities and on the dates indicated.

 

 

 By:

     

/s/ John M. Perlowski       

      

John M. Perlowski

      

Chief Executive Officer (principal executive officer) of

      

BlackRock Funds VI and Master Investment Portfolio II

Date: February 24, 2026

 

 

 By:

     

/s/ Trent Walker       

      

Trent Walker

      

Chief Financial Officer (principal financial officer) of

      

BlackRock Funds VI and Master Investment Portfolio II

Date: February 24, 2026

 

ATTACHMENTS / EXHIBITS

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