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iso4217:USD pure 0000844779 false 485BPOS 2026-04-30 -0.0364 0.3135 -0.0347 0.3178 N-1A BLACKROCK FUNDS 2026-08-28 Fund OverviewKey Facts About BlackRock Emerging Markets ex-China Fund Investment Objective <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The investment objective of BlackRock Emerging Markets ex-China Fund (</span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Emerging Markets ex-China</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> or the “Fund”), </span><span style="color:#000000;font-family:arial;font-size:9.30pt">a series of BlackRock Funds</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">SM</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> (the “Trust”), is to seek long-term capital appreciation by investing in securities of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers in countries having developing capital markets (other than China).</span></div> Fees and Expenses of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. Amounts in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the table are rounded to the nearest basis point, which in some cases may be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">0.00.</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">You may pay other fees, such </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">as brokerage commissions and other fees to your financial professional or your selected securities dealer, broker, </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">investment adviser, service provider or industry professional (including BlackRock Advisors, LLC (</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">BlackRock</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">) and </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">its affiliates) (each, a </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">Financial Intermediary</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">), which are not reflected in the table and example below.</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> You may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">fund complex advised by BlackRock or its affiliates. More information about these and other discounts is available </span><span style="color:#000000;font-family:arial;font-size:9.30pt">from your Financial Intermediary and in the “Details About the Share Classes” and the “Intermediary-Defined Sales </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Charge Waiver Policies” sections on pages </span><span style="color:#000000;font-family:arial;font-size:9.30pt">30</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">A-1</span><span style="color:#000000;font-family:arial;font-size:9.30pt">, respectively, of the Fund’s prospectus and in the “Purchase of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Shares” section on page </span><span style="color:#000000;font-family:arial;font-size:9.30pt">II-97</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> of Part II of the Fund’s Statement of Additional Information.</span> <br/> <span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the fund complex advised by BlackRock or its affiliates. 25000 Shareholder Fees (fees paid directly from your investment) 0.0525 0 0 0 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0081 0.0081 0.0025 0 0.0267 0.0269 0.0001 0.0001 0.0374 0.0351 -0.0262 -0.0264 0.0112 0.0087 A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. June 30, 2028 Other Expenses have been restated to reflect current fees. The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses and restatement of Other Expenses. Example: <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This Example is intended to help you compare the cost of investing in shares of the Fund with the cost of investing in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other mutual funds. The Example assumes that you invest $10,000 in shares of the Fund for the time periods </span><span style="color:#000000;font-family:arial;font-size:9.30pt">indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual </span><span style="color:#000000;font-family:arial;font-size:9.30pt">costs may be higher or lower, based on these assumptions your costs would be:</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> 633 1379 2143 4140 89 831 1595 3607 Portfolio Turnover: <div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was </span><span style="color:#000000;font-family:arial;font-size:9.30pt">81</span><span style="color:#000000;font-family:arial;font-size:9.30pt">% of the average value of its portfolio.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> 0.81 Principal Investment Strategies of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Under normal market conditions, the Fund invests at least 80% of its net assets plus any borrowings for investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">purposes in securities of issuers located in countries with developing capital markets (other than China), and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">derivatives with similar economic characteristics. Investments in derivatives are counted toward the Fund’s 80% policy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to the extent that they provide investment exposure to the securities included within that policy or to one or more </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market risk factors associated with such securities.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Under normal market conditions, the Fund invests at least 80% of its net assets plus any borrowings for investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">purposes in securities of issuers located in countries with developing capital markets (other than China), and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">derivatives with similar economic characteristics. Investments in derivatives are counted toward the Fund’s 80% policy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to the extent that they provide investment exposure to the securities included within that policy or to one or more </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market risk factors associated with such securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">For purposes of the Fund’s 80% policy, issuers located in countries with developing capital markets (other than China) </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are issuers that are located in a country that is a constituent country of the MSCI Emerging Markets ex China Index. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund considers an issuer to be located in a country if (1) the issuer is organized under the laws of or maintains its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">principal place of business in such country, (2) the issuer’s securities are traded principally in such country, or (3) at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">least 50% of the issuer’s assets, gross revenues or profits in any one of the last two years represents assets or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">activities located in such country. The Fund normally invests in at least three countries at any given time. Except as </span><span style="color:#000000;font-family:arial;font-size:9.30pt">described herein, there are no other limits on the geographic allocation of the Fund’s investments. Because of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">difficulty of investing substantial sums in some developing capital markets, in certain markets, the Fund may limit its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments to a relatively small number of large, actively-traded companies. The Fund may also gain exposure to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities of issuers located in countries with developing capital markets (other than China) through its investments in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other investment companies, including exchange-traded funds, that invest in such securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund can invest in securities denominated in either U.S. dollars or foreign currencies.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">From time to time the Fund may invest in shares of companies through initial public offerings (“IPOs”). The Fund may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">also invest in fixed income securities issued by companies and governments in countries with developing capital </span><span style="color:#000000;font-family:arial;font-size:9.30pt">markets, as well as mezzanine investments. The Fund may invest in fixed income securities of any maturity or credit </span><span style="color:#000000;font-family:arial;font-size:9.30pt">quality, including investments rated below investment grade.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may, when consistent with the Fund’s investment objective, buy or sell options or futures on a security or an </span><span style="color:#000000;font-family:arial;font-size:9.30pt">index of securities and may buy options on a currency or a basket of currencies, or enter into interest rate or foreign </span><span style="color:#000000;font-family:arial;font-size:9.30pt">currency transactions, including swaps (collectively, commonly known as derivatives).</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">To gain exposure to certain securities or markets, the Fund may invest in participation notes issued by banks, broker-dealers</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> and other financial institutions or other structured or derivative instruments that are designed to replicate, or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">otherwise provide exposure to, the performance of that security or market. Participation notes are typically used when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">a direct investment in the underlying security is restricted due to local regulations.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may engage in active and frequent trading of portfolio securities to achieve its primary investment strategies.</span></div> The Fund considers an issuer to be located in a country if (1) the issuer is organized under the laws of or maintains its principal place of business in such country, (2) the issuer’s securities are traded principally in such country, or (3) at least 50% of the issuer’s assets, gross revenues or profits in any one of the last two years represents assets or activities located in such country. The Fund normally invests in at least three countries at any given time. Except as described herein, there are no other limits on the geographic allocation of the Fund’s investments. Because of the difficulty of investing substantial sums in some developing capital markets, in certain markets, the Fund may limit its investments to a relatively small number of large, actively-traded companies. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Emerging Markets Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Emerging markets are riskier than more developed markets because they tend to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect </span><span style="color:#000000;font-family:arial;font-size:9.30pt">returns to U.S. investors. In addition, many emerging financial markets have far lower trading volumes and less </span><span style="color:#000000;font-family:arial;font-size:9.30pt">liquidity than developed markets.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Foreign Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Foreign investments often involve special risks not present in U.S. investments that can </span><span style="color:#000000;font-family:arial;font-size:9.30pt">increase the chances that the Fund will lose money. These risks include:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory </span><span style="color:#000000;font-family:arial;font-size:9.30pt">oversight.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The economies of certain foreign markets may not compare favorably with the economy of the United States with </span><span style="color:#000000;font-family:arial;font-size:9.30pt">respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">payments position.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The governments of certain countries, or the U.S. Government with respect to certain countries, may prohibit or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">impose substantial restrictions through capital controls and/or sanctions on foreign investments in the capital </span><span style="color:#000000;font-family:arial;font-size:9.30pt">markets or certain industries in those countries, which may prohibit or restrict the ability to own or transfer </span><span style="color:#000000;font-family:arial;font-size:9.30pt">currency, securities, derivatives or other assets.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the same extent as does the United States and may not have laws to protect investors that are comparable to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">U.S. securities laws.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities not typically associated with settlement and clearance of U.S. investments.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund’s claims to recover foreign withholding taxes may not be successful, and if the likelihood of recovery of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign withholding taxes materially decreases, due to, for example, a change in tax regulation or approach in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign country, accruals in the Fund’s net asset value for such refunds may be written down partially or in full, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">which will adversely affect the Fund’s net asset value.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Equity Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Convertible Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The market value of a convertible security performs like that of a regular debt </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">their market value may change based on changes in the issuer’s credit rating or the market’s perception of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">converted, a convertible security is also subject to the same types of market and issuer risks that apply to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying common stock, including the potential for increased volatility in the price of the convertible security.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Debt Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">extension risk, and prepayment risk, each of which are described in further detail below:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Credit Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Interest Rate Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being </span><span style="color:#000000;font-family:arial;font-size:9.30pt">equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">management.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset </span><span style="color:#000000;font-family:arial;font-size:9.30pt">only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">debt securities.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value when interest rates change.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color:#000000;font-family:arial;font-size:9.30pt">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">hurt the Fund’s performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Extension Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated, causing the value of these obligations to fall.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Prepayment Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Depositary Receipts Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Depositary receipts are generally subject to the same risks as the foreign securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that they evidence or into which they may be converted. In addition to investment risks associated with the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying issuer, depositary receipts expose the Fund to additional risks associated with the non-uniform terms </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that apply to depositary receipt programs, credit exposure to the depository bank and to the sponsors and other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">parties with whom the depository bank establishes the programs, currency risk and the risk of an illiquid market for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">depositary receipts. The issuers of unsponsored depositary receipts are not obligated to disclose information that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">is, in the United States, considered material. Therefore, there may be less information available regarding these </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers and there may not be a correlation between such information and the market value of the depositary </span><span style="color:#000000;font-family:arial;font-size:9.30pt">receipts. While depositary receipts provide an alternative to directly purchasing underlying foreign securities in their </span><span style="color:#000000;font-family:arial;font-size:9.30pt">respective markets and currencies, they continue to be subject to many of the risks associated with investing </span><span style="color:#000000;font-family:arial;font-size:9.30pt">directly in foreign securities, including political, economic, and currency risk.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Derivatives Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Leverage Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exceed the amount originally invested.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Market Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">derivatives positions to lose value.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Counterparty Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure to such a counterparty.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Illiquidity Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color:#000000;font-family:arial;font-size:9.30pt">difficult for the Fund to value accurately.</span></div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Operational Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issues, settlement issues, systems failures, inadequate controls and human error.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Legal Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">enforceability of a contract.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Volatility and Correlation Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">fluctuations in their values may not correlate with the overall securities markets.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Valuation Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color:#000000;font-family:arial;font-size:9.30pt">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color:#000000;font-family:arial;font-size:9.30pt">instruments or quote prices for them.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Hedging Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may result in certain adverse tax consequences.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Tax Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">realizes from its investments.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Participation Notes </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Investing in participation notes involves the same risks associated with a direct investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">in the shares of the companies the notes seek to replicate. However, the performance results of participation notes </span><span style="color:#000000;font-family:arial;font-size:9.30pt">will not replicate exactly the performance of the issuers or markets that the notes seek to replicate due to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transaction costs and other expenses.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Dollar Rolls Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Dollar rolls involve the risk that the market value of the securities that the Fund is committed to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Geographic Concentration Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— From time to time the Fund may invest a substantial amount of its assets in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers located in a single country or a limited number of countries. If the Fund concentrates its investments in this </span><span style="color:#000000;font-family:arial;font-size:9.30pt">manner, it assumes the risk that economic, political and social conditions in those countries will have a significant </span><span style="color:#000000;font-family:arial;font-size:9.30pt">impact on its investment performance. The Fund’s investment performance may also be more volatile if it </span><span style="color:#000000;font-family:arial;font-size:9.30pt">concentrates its investments in certain countries, especially emerging market countries.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">High Portfolio Turnover Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund may engage in active and frequent trading of its portfolio securities. High </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of higher than normal portfolio turnover may adversely affect Fund performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Leverage Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the “Investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Company Act”), and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">magnified when the Fund uses leverage.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Market Risk and Selection Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">go down in value, including the possibility that the markets will go down sharply and unpredictably. An investor could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">lose money over short periods due to fluctuation in the Fund’s net asset value in response to short-term market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">movements and over longer periods during market downturns. Securities or other investments held by the Fund may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underperform the markets, the relevant indices or benchmarks, or the securities selected by other funds with </span><span style="color:#000000;font-family:arial;font-size:9.30pt">similar investment objectives and investment strategies, or may otherwise fail to perform as intended. The value of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">a security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The success of the Fund’s activities could be affected by interest rates, availability of credit, inflation rates, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">economic uncertainty, changes in laws, tariffs and trade barriers, supply chain disruptions, economic sanctions, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">currency exchange controls, and local, regional or global events such as war, acts of terrorism, natural and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">environmental disasters, the spread of infectious illness or other public health issues, recessions, or other events.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased </span><span style="color:#000000;font-family:arial;font-size:9.30pt">costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund invests.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mezzanine Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Mezzanine securities carry the risk that the issuer will not be able to meet its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligations and that the equity securities purchased with the mezzanine investments may lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mid Cap Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The securities of mid cap companies generally trade in lower volumes and are generally </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subject to greater and less predictable price changes than the securities of larger capitalization companies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">“New Issues” Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> “New issues” are IPOs of equity securities. Securities issued in IPOs have no trading history, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and information about the companies may be available for very limited periods. In addition, the prices of securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">sold in IPOs may be highly volatile or may decline shortly after the IPO.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Non-Diversification Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is a non-diversified fund. Because the Fund may invest in securities of a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an </span><span style="color:#000000;font-family:arial;font-size:9.30pt">individual issuer than a fund that invests more widely.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Operational and Technology Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Preferred Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">preferred securities generally pay dividends only after the company makes required payments to holders of its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">larger companies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Reverse Repurchase Agreements Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Reverse repurchase agreements involve the sale of securities held by the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse </span><span style="color:#000000;font-family:arial;font-size:9.30pt">repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">all. The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund, including the value of the investments made with cash collateral, is less than the value of the securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">These events could also trigger adverse tax consequences for the Fund. In addition, reverse repurchase agreements </span><span style="color:#000000;font-family:arial;font-size:9.30pt">involve the risk that the interest income earned in the investment of the proceeds will be less than the interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expense.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Small Cap and Emerging Growth Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Small cap or emerging growth companies may have limited </span><span style="color:#000000;font-family:arial;font-size:9.30pt">product lines or markets. They may be less financially secure than larger, more established companies. They may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">depend on a more limited management group than larger capitalized companies.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Structured Notes Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Structured notes and other related instruments purchased by the Fund are generally </span><span style="color:#000000;font-family:arial;font-size:9.30pt">privately negotiated debt obligations where the principal and/or interest is determined by reference to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance of a specific asset, benchmark asset, market or interest rate (“reference measure”). The purchase of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">structured notes exposes the Fund to the credit risk of the issuer of the structured product. Structured notes may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">be leveraged, increasing the volatility of each structured note’s value relative to the change in the reference </span><span style="color:#000000;font-family:arial;font-size:9.30pt">measure. Structured notes may also be less liquid and more difficult to price accurately than less complex </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities and instruments or more traditional debt securities.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> Performance Information <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The information shows you how the Fund’s performance has varied for the periods since inception and provides some </span><span style="color:#000000;font-family:arial;font-size:9.30pt">indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the MSCI </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Emerging Markets ex China Index (Net). To the extent that dividends and distributions have been paid by the Fund, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. </span></div><div style="line-height:10.695pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">As with all such investments, past performance (before and after taxes) is not an indication of future results. Sales </span><span style="color:#000000;font-family:arial;font-size:9.30pt">charges are not reflected in the bar chart. If they were, returns would be less than those shown. However, the table </span><span style="color:#000000;font-family:arial;font-size:9.30pt">includes all applicable fees and sales charges. If the Fund’s investment manager and its affiliates had not waived or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reimbursed certain Fund expenses during these periods, the Fund’s returns would have been lower. Updated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">information on the Fund’s performance, including its current net asset value, can be obtained by visiting </span><span style="color:#000000;font-family:arial;font-size:9.30pt">www.blackrock.com or can be obtained by phone at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(800) 882-0052</span><span style="color:#000000;font-family:arial;font-size:9.30pt">.</span></div> The information shows you how the Fund’s performance has varied for the periods since inception and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. Sales charges are not reflected in the bar chart. If they were, returns would be less than those shown. However, the table includes all applicable fees and sales charges. www.blackrock.com (800) 882-0052 Investor A Shares ANNUAL TOTAL RETURNS BlackRock Emerging Markets ex-China Fund As of 12/31 <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">During the periods shown in the bar chart, the highest return for a quarter was 16.92% (quarter ended June 30, 2025) </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and the lowest return for a quarter was -8.81% (quarter ended December 31, 2024). The year-to-date return as of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">June 30, 2026 was 47.90%.</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> highest return 0.1692 2025-06-30 lowest return -0.0881 2024-12-31 year-to-date return 2026-06-30 0.4790 For the periods ended 12/31/25Average Annual Total Returns 2023-03-29 2023-03-29 2023-03-29 2023-03-29 0.2446 0.1433 0.2549 0.1362 0.1574 0.1118 -0.3174 0.1689 0.3461 0.1947 <div style="margin-top:12pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color:#000000;font-family:arial;font-size:9.30pt">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Investor A Shares only, and Institutional Shares will vary.</span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Investor A Shares only, and Institutional Shares will vary. Fund Overview Key Facts About BlackRock Emerging Markets ex-China Fund Investment Objective <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The investment objective of BlackRock Emerging Markets ex-China Fund (</span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">Emerging Markets ex-China</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> or the “Fund”), </span><span style="color:#000000;font-family:arial;font-size:9.30pt">a series of BlackRock Funds</span><span style="color:#000000;font-family:arial;font-size:5pt;position:relative;top:-3.25pt">SM</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> (the “Trust”), is to seek long-term capital appreciation by investing in securities of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers in countries having developing capital markets (other than China).</span></div> Fees and Expenses of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Amounts in the table are rounded to the nearest basis point, which in some cases may be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">“</span><span style="color:#000000;font-family:arial;font-size:9.30pt">0.00.</span><span style="color:#000000;font-family:arial;font-size:9.30pt">”</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">You may pay other </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">fees, such as brokerage commissions and other fees to your financial professional or your selected securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">(“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are not reflected in the table and </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-weight:bold">example below.</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) 0.0081 0 0.0255 0.0001 0.0337 -0.0255 0.0082 June 30, 2028 Other Expenses have been restated to reflect current fees. The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses and restatement of Other Expenses. Example: This Example is intended to help you compare the cost of investing in shares of the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in shares of the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:  84 797 1534 3485 Portfolio Turnover: The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 81% of the average value of its portfolio. 0.81 Principal Investment Strategies of the Fund <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Under normal market conditions, the Fund invests at least 80% of its net assets plus any borrowings for investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">purposes in securities of issuers located in countries with developing capital markets (other than China), and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">derivatives with similar economic characteristics. Investments in derivatives are counted toward the Fund’s 80% policy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to the extent that they provide investment exposure to the securities included within that policy or to one or more </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market risk factors associated with such securities.</span></div> <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Under normal market conditions, the Fund invests at least 80% of its net assets plus any borrowings for investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">purposes in securities of issuers located in countries with developing capital markets (other than China), and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">derivatives with similar economic characteristics. Investments in derivatives are counted toward the Fund’s 80% policy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to the extent that they provide investment exposure to the securities included within that policy or to one or more </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market risk factors associated with such securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">For purposes of the Fund’s 80% policy, issuers located in countries with developing capital markets (other than China) </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are issuers that are located in a country that is a constituent country of the MSCI Emerging Markets ex China Index. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund considers an issuer to be located in a country if (1) the issuer is organized under the laws of or maintains its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">principal place of business in such country, (2) the issuer’s securities are traded principally in such country, or (3) at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">least 50% of the issuer’s assets, gross revenues or profits in any one of the last two years represents assets or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">activities located in such country. The Fund normally invests in at least three countries at any given time. Except as </span><span style="color:#000000;font-family:arial;font-size:9.30pt">described herein, there are no other limits on the geographic allocation of the Fund’s investments. Because of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">difficulty of investing substantial sums in some developing capital markets, in certain markets, the Fund may limit its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investments to a relatively small number of large, actively-traded companies. The Fund may also gain exposure to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities of issuers located in countries with developing capital markets (other than China) through its investments in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other investment companies, including exchange-traded funds, that invest in such securities.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund can invest in securities denominated in either U.S. dollars or foreign currencies.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">From time to time the Fund may invest in shares of companies through initial public offerings (“IPOs”). The Fund may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">also invest in fixed income securities issued by companies and governments in countries with developing capital </span><span style="color:#000000;font-family:arial;font-size:9.30pt">markets, as well as mezzanine investments. The Fund may invest in fixed income securities of any maturity or credit </span><span style="color:#000000;font-family:arial;font-size:9.30pt">quality, including investments rated below investment grade.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may, when consistent with the Fund’s investment objective, buy or sell options or futures on a security or an </span><span style="color:#000000;font-family:arial;font-size:9.30pt">index of securities and may buy options on a currency or a basket of currencies, or enter into interest rate or foreign </span><span style="color:#000000;font-family:arial;font-size:9.30pt">currency transactions, including swaps (collectively, commonly known as derivatives).</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">To gain exposure to certain securities or markets, the Fund may invest in participation notes issued by banks, broker-dealers</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> and other financial institutions or other structured or derivative instruments that are designed to replicate, or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">otherwise provide exposure to, the performance of that security or market. Participation notes are typically used when </span><span style="color:#000000;font-family:arial;font-size:9.30pt">a direct investment in the underlying security is restricted due to local regulations.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may engage in active and frequent trading of portfolio securities to achieve its primary investment strategies.</span></div> The Fund considers an issuer to be located in a country if (1) the issuer is organized under the laws of or maintains its principal place of business in such country, (2) the issuer’s securities are traded principally in such country, or (3) at least 50% of the issuer’s assets, gross revenues or profits in any one of the last two years represents assets or activities located in such country. The Fund normally invests in at least three countries at any given time. Except as described herein, there are no other limits on the geographic allocation of the Fund’s investments. Because of the difficulty of investing substantial sums in some developing capital markets, in certain markets, the Fund may limit its investments to a relatively small number of large, actively-traded companies. You may lose part or all of your investment in the Fund or your investment may not perform as well as other similar investments. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Emerging Markets Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Emerging markets are riskier than more developed markets because they tend to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">develop unevenly and may never fully develop. Investments in emerging markets may be considered speculative. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect </span><span style="color:#000000;font-family:arial;font-size:9.30pt">returns to U.S. investors. In addition, many emerging financial markets have far lower trading volumes and less </span><span style="color:#000000;font-family:arial;font-size:9.30pt">liquidity than developed markets.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Foreign Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Foreign investments often involve special risks not present in U.S. investments that can </span><span style="color:#000000;font-family:arial;font-size:9.30pt">increase the chances that the Fund will lose money. These risks include:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund generally holds its foreign securities and cash in foreign banks and securities depositories, which may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">be recently organized or new to the foreign custody business and may be subject to only limited or no regulatory </span><span style="color:#000000;font-family:arial;font-size:9.30pt">oversight.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The economies of certain foreign markets may not compare favorably with the economy of the United States with </span><span style="color:#000000;font-family:arial;font-size:9.30pt">respect to such issues as growth of gross national product, reinvestment of capital, resources and balance of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">payments position.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The governments of certain countries, or the U.S. Government with respect to certain countries, may prohibit or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">impose substantial restrictions through capital controls and/or sanctions on foreign investments in the capital </span><span style="color:#000000;font-family:arial;font-size:9.30pt">markets or certain industries in those countries, which may prohibit or restrict the ability to own or transfer </span><span style="color:#000000;font-family:arial;font-size:9.30pt">currency, securities, derivatives or other assets.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Many foreign governments do not supervise and regulate stock exchanges, brokers and the sale of securities to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the same extent as does the United States and may not have laws to protect investors that are comparable to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">U.S. securities laws.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Settlement and clearance procedures in certain foreign markets may result in delays in payment for or delivery of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities not typically associated with settlement and clearance of U.S. investments.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;margin-left:12pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:493.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund’s claims to recover foreign withholding taxes may not be successful, and if the likelihood of recovery of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign withholding taxes materially decreases, due to, for example, a change in tax regulation or approach in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">foreign country, accruals in the Fund’s net asset value for such refunds may be written down partially or in full, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">which will adversely affect the Fund’s net asset value.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Equity Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Stock markets are volatile. The price of equity securities fluctuates based on changes in a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">company’s financial condition and overall market and economic conditions.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Convertible Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The market value of a convertible security performs like that of a regular debt </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security; that is, if market interest rates rise, the value of a convertible security usually falls. In addition, convertible </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities are subject to the risk that the issuer will not be able to pay interest, principal or dividends when due, and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">their market value may change based on changes in the issuer’s credit rating or the market’s perception of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuer’s creditworthiness. Since it derives a portion of its value from the common stock into which it may be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">converted, a convertible security is also subject to the same types of market and issuer risks that apply to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying common stock, including the potential for increased volatility in the price of the convertible security.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Debt Securities Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Debt securities, such as bonds, involve risks, such as credit risk, interest rate risk, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">extension risk, and prepayment risk, each of which are described in further detail below:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Credit Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Credit risk refers to the possibility that the issuer of a debt security (i.e., the borrower) will not be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">able to make payments of interest and principal when due. Changes in an issuer’s credit rating or the market’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">perception of an issuer’s creditworthiness may also affect the value of the Fund’s investment in that issuer. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">degree of credit risk depends on both the financial condition of the issuer and the terms of the obligation.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Interest Rate Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The market value of bonds and other fixed-income securities changes in response to interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">rate changes and other factors. Interest rate risk is the risk that prices of bonds and other fixed-income securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">will increase as interest rates fall and decrease as interest rates rise.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The Fund may be subject to a greater risk of rising interest rates during a period of low interest rates. For example, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">if interest rates increase by 1%, assuming a current portfolio duration of ten years, and all other factors being </span><span style="color:#000000;font-family:arial;font-size:9.30pt">equal, the value of the Fund’s investments would be expected to decrease by 10%. (Duration is a measure of the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">price sensitivity of a debt security or portfolio of debt securities to relative changes in interest rates.) The magnitude </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of these fluctuations in the market price of bonds and other fixed-income securities is generally greater for those </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities with longer maturities. Fluctuations in the market price of the Fund’s investments will not affect interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">income derived from instruments already owned by the Fund, but will be reflected in the Fund’s net asset value. The </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund may lose money if short-term or long-term interest rates rise sharply in a manner not anticipated by Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">management.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">To the extent the Fund invests in debt securities that may be prepaid at the option of the obligor (such as mortgage-backed</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> securities), the sensitivity of such securities to changes in interest rates may increase (to the detriment of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund) when interest rates rise. Moreover, because rates on certain floating rate debt securities typically reset </span><span style="color:#000000;font-family:arial;font-size:9.30pt">only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expected to cause some fluctuations in the net asset value of the Fund to the extent that it invests in floating rate </span><span style="color:#000000;font-family:arial;font-size:9.30pt">debt securities.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">These basic principles of bond prices also apply to U.S. Government securities. A security backed by the “full faith </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and credit” of the U.S. Government is guaranteed only as to its stated interest rate and face value at maturity, not </span></div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">its current market price. Just like other fixed-income securities, government-guaranteed securities will fluctuate in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">value when interest rates change.</span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">A general rise in interest rates has the potential to cause investors to move out of fixed-income securities on a large </span><span style="color:#000000;font-family:arial;font-size:9.30pt">scale, which may increase redemptions from funds that hold large amounts of fixed-income securities. Heavy </span><span style="color:#000000;font-family:arial;font-size:9.30pt">redemptions could cause the Fund to sell assets at inopportune times or at a loss or depressed value and could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">hurt the Fund’s performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Extension Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates rise, certain obligations will be paid off by the obligor more slowly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">anticipated, causing the value of these obligations to fall.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Prepayment Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — When interest rates fall, certain obligations will be paid off by the obligor more quickly than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">originally anticipated, and the Fund may have to invest the proceeds in securities with lower yields.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Depositary Receipts Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Depositary receipts are generally subject to the same risks as the foreign securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that they evidence or into which they may be converted. In addition to investment risks associated with the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underlying issuer, depositary receipts expose the Fund to additional risks associated with the non-uniform terms </span><span style="color:#000000;font-family:arial;font-size:9.30pt">that apply to depositary receipt programs, credit exposure to the depository bank and to the sponsors and other </span><span style="color:#000000;font-family:arial;font-size:9.30pt">parties with whom the depository bank establishes the programs, currency risk and the risk of an illiquid market for </span><span style="color:#000000;font-family:arial;font-size:9.30pt">depositary receipts. The issuers of unsponsored depositary receipts are not obligated to disclose information that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">is, in the United States, considered material. Therefore, there may be less information available regarding these </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers and there may not be a correlation between such information and the market value of the depositary </span><span style="color:#000000;font-family:arial;font-size:9.30pt">receipts. While depositary receipts provide an alternative to directly purchasing underlying foreign securities in their </span><span style="color:#000000;font-family:arial;font-size:9.30pt">respective markets and currencies, they continue to be subject to many of the risks associated with investing </span><span style="color:#000000;font-family:arial;font-size:9.30pt">directly in foreign securities, including political, economic, and currency risk.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Derivatives Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The Fund’s use of derivatives may increase its costs, reduce the Fund’s returns and/or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">increase volatility. Derivatives involve significant risks, including:</span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Leverage Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The Fund’s use of derivatives can magnify the Fund’s gains and losses. Relatively small market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">movements may result in large changes in the value of a derivatives position and can result in losses that greatly </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exceed the amount originally invested.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Market Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Some derivatives are more sensitive to interest rate changes and market price fluctuations than </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other securities. The Fund could also suffer losses related to its derivatives positions as a result of unanticipated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">market movements, which losses are potentially unlimited. Finally, BlackRock may not be able to predict correctly </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the direction of securities prices, interest rates and other economic factors, which could cause the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">derivatives positions to lose value.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Counterparty Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Derivatives are also subject to counterparty risk, which is the risk that the other party in the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transaction will be unable or unwilling to fulfill its contractual obligation, and the related risks of having concentrated </span><span style="color:#000000;font-family:arial;font-size:9.30pt">exposure to such a counterparty.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Illiquidity Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The possible lack of a liquid secondary market for derivatives and the resulting inability of the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more </span><span style="color:#000000;font-family:arial;font-size:9.30pt">difficult for the Fund to value accurately.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Operational Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The use of derivatives includes the risk of potential operational issues, including documentation </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issues, settlement issues, systems failures, inadequate controls and human error.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Legal Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — The risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">enforceability of a contract.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Volatility and Correlation Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Volatility is defined as the characteristic of a security, an index or a market to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">fluctuate significantly in price within a short time period. A risk of the Fund’s use of derivatives is that the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">fluctuations in their values may not correlate with the overall securities markets.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Valuation Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Valuation for derivatives may not be readily available in the market. Valuation may be more difficult </span><span style="color:#000000;font-family:arial;font-size:9.30pt">in times of market turmoil since many investors and market makers may be reluctant to purchase complex </span><span style="color:#000000;font-family:arial;font-size:9.30pt">instruments or quote prices for them.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Hedging Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Hedges are sometimes subject to imperfect matching between the derivative and the underlying </span><span style="color:#000000;font-family:arial;font-size:9.30pt">security, and there can be no assurance that the Fund’s hedging transactions will be effective. The use of hedging </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may result in certain adverse tax consequences.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Tax Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Certain aspects of the tax treatment of derivative instruments, including swap agreements and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commodity-linked derivative instruments, are currently unclear and may be affected by changes in legislation, </span></div><div style="line-height:10.695pt;margin-left:12pt;text-align:left;"><span style="color:#000000;font-family:arial;font-size:9.30pt">regulations or other legally binding authority. Such treatment may be less favorable than that given to a direct </span><span style="color:#000000;font-family:arial;font-size:9.30pt">investment in an underlying asset and may adversely affect the timing, character and amount of income the Fund </span><span style="color:#000000;font-family:arial;font-size:9.30pt">realizes from its investments.</span></div><div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">Participation Notes</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Investing in participation notes involves the same risks associated with a direct investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">in the shares of the companies the notes seek to replicate. However, the performance results of participation notes </span><span style="color:#000000;font-family:arial;font-size:9.30pt">will not replicate exactly the performance of the issuers or markets that the notes seek to replicate due to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">transaction costs and other expenses.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Dollar Rolls Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Dollar rolls involve the risk that the market value of the securities that the Fund is committed to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">buy may decline below the price of the securities the Fund has sold. These transactions may involve leverage.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Geographic Concentration Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— From time to time the Fund may invest a substantial amount of its assets in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers located in a single country or a limited number of countries. If the Fund concentrates its investments in this </span><span style="color:#000000;font-family:arial;font-size:9.30pt">manner, it assumes the risk that economic, political and social conditions in those countries will have a significant </span><span style="color:#000000;font-family:arial;font-size:9.30pt">impact on its investment performance. The Fund’s investment performance may also be more volatile if it </span><span style="color:#000000;font-family:arial;font-size:9.30pt">concentrates its investments in certain countries, especially emerging market countries.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">High Portfolio Turnover Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund may engage in active and frequent trading of its portfolio securities. High </span><span style="color:#000000;font-family:arial;font-size:9.30pt">portfolio turnover (more than 100%) may result in increased transaction costs to the Fund, including brokerage </span><span style="color:#000000;font-family:arial;font-size:9.30pt">commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">other securities. The sale of Fund portfolio securities may result in the realization and/or distribution to </span><span style="color:#000000;font-family:arial;font-size:9.30pt">shareholders of higher capital gains or losses as compared to a fund with less active trading policies. These effects </span><span style="color:#000000;font-family:arial;font-size:9.30pt">of higher than normal portfolio turnover may adversely affect Fund performance.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Leverage Risk</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> — Some transactions may give rise to a form of economic leverage. These transactions may include, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">to meet the applicable requirements of the Investment Company Act of 1940, as amended (the “Investment </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Company Act”), and the rules thereunder. Increases and decreases in the value of the Fund’s portfolio will be </span><span style="color:#000000;font-family:arial;font-size:9.30pt">magnified when the Fund uses leverage.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Market Risk and Selection Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Market risk is the risk that one or more markets in which the Fund invests will </span><span style="color:#000000;font-family:arial;font-size:9.30pt">go down in value, including the possibility that the markets will go down sharply and unpredictably. An investor could </span><span style="color:#000000;font-family:arial;font-size:9.30pt">lose money over short periods due to fluctuation in the Fund’s net asset value in response to short-term market </span><span style="color:#000000;font-family:arial;font-size:9.30pt">movements and over longer periods during market downturns. Securities or other investments held by the Fund may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">underperform the markets, the relevant indices or benchmarks, or the securities selected by other funds with </span><span style="color:#000000;font-family:arial;font-size:9.30pt">similar investment objectives and investment strategies, or may otherwise fail to perform as intended. The value of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">a security or other asset may decline due to changes in general market conditions, economic trends or events that </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are not specifically related to the issuer of the security or other asset, or factors that affect a particular issuer or </span><span style="color:#000000;font-family:arial;font-size:9.30pt">issuers, exchange, country, group of countries, region, market, industry, group of industries, sector or asset class. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">The success of the Fund’s activities could be affected by interest rates, availability of credit, inflation rates, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">economic uncertainty, changes in laws, tariffs and trade barriers, supply chain disruptions, economic sanctions, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">currency exchange controls, and local, regional or global events such as war, acts of terrorism, natural and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">environmental disasters, the spread of infectious illness or other public health issues, recessions, or other events.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div><div style="margin-top:4pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">Recent policy initiatives undertaken by the U.S. government have the potential to impact international relations, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">trade agreements and the overall regulatory environment in ways that could create uncertainty and instability in </span><span style="color:#000000;font-family:arial;font-size:9.30pt">domestic and global markets, and could adversely affect the investment performance of the Fund. In particular, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">actions taken by the U.S. government in respect of international trade relations could lead to trade wars, increased </span><span style="color:#000000;font-family:arial;font-size:9.30pt">costs for imported goods, disruptions in supply chains, reduced foreign investment, and instability in regions where </span><span style="color:#000000;font-family:arial;font-size:9.30pt">the Fund invests.</span></div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mezzanine Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Mezzanine securities carry the risk that the issuer will not be able to meet its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">obligations and that the equity securities purchased with the mezzanine investments may lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Mid Cap Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The securities of mid cap companies generally trade in lower volumes and are generally </span><span style="color:#000000;font-family:arial;font-size:9.30pt">subject to greater and less predictable price changes than the securities of larger capitalization companies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">“New Issues” Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> “New issues” are IPOs of equity securities. Securities issued in IPOs have no trading history, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and information about the companies may be available for very limited periods. In addition, the prices of securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">sold in IPOs may be highly volatile or may decline shortly after the IPO.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Non-Diversification Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is a non-diversified fund. Because the Fund may invest in securities of a </span><span style="color:#000000;font-family:arial;font-size:9.30pt">smaller number of issuers, it may be more exposed to the risks associated with and developments affecting an </span><span style="color:#000000;font-family:arial;font-size:9.30pt">individual issuer than a fund that invests more widely.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Operational and Technology Risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— The Fund is directly and indirectly susceptible to operational and technology </span><span style="color:#000000;font-family:arial;font-size:9.30pt">risks, including those related to human errors, processing errors, communication errors, systems failures, </span><span style="color:#000000;font-family:arial;font-size:9.30pt">cybersecurity incidents, and the use of artificial intelligence and machine learning (“AI”), which may result in losses </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the Fund and its shareholders or may impair the Fund’s operations. While the Fund’s service providers are </span><span style="color:#000000;font-family:arial;font-size:9.30pt">required to have appropriate operational, information security and cybersecurity risk management policies and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">procedures, their methods of risk management may differ from those of the Fund. Operational and technology risks </span><span style="color:#000000;font-family:arial;font-size:9.30pt">for the issuers in which the Fund invests could also result in material adverse consequences for such issuers and </span><span style="color:#000000;font-family:arial;font-size:9.30pt">may cause the Fund’s investments in such issuers to lose value.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.0pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Preferred Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Preferred securities may pay fixed or adjustable rates of return. Preferred securities </span><span style="color:#000000;font-family:arial;font-size:9.30pt">are subject to issuer-specific and market risks applicable generally to equity securities. In addition, a company’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">preferred securities generally pay dividends only after the company makes required payments to holders of its </span><span style="color:#000000;font-family:arial;font-size:9.30pt">bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and other debt to actual or perceived changes in the company’s financial condition or prospects. Preferred </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities of smaller companies may be more vulnerable to adverse developments than preferred securities of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">larger companies.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Reverse Repurchase Agreements Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Reverse repurchase agreements involve the sale of securities held by the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund with an agreement to repurchase the securities at an agreed-upon price, date and interest payment. Reverse </span><span style="color:#000000;font-family:arial;font-size:9.30pt">repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">all. The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund, including the value of the investments made with cash collateral, is less than the value of the securities. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">These events could also trigger adverse tax consequences for the Fund. In addition, reverse repurchase agreements </span><span style="color:#000000;font-family:arial;font-size:9.30pt">involve the risk that the interest income earned in the investment of the proceeds will be less than the interest </span><span style="color:#000000;font-family:arial;font-size:9.30pt">expense.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Small Cap and Emerging Growth Securities Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt">— Small cap or emerging growth companies may have limited </span><span style="color:#000000;font-family:arial;font-size:9.30pt">product lines or markets. They may be less financially secure than larger, more established companies. They may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">depend on a more limited management group than larger capitalized companies.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> </div> <div style="clear:both;position:relative;"> </div> </div> <div> <div style="clear:both;margin-top:4.805pt;position:relative;width:100%;"> <div style="float:left;line-height:9.87pt;text-align:left;width:8pt;"><span style="color:#000000;font-family:arial;font-size:8.37pt;position:relative;top:-0.5pt">◼</span></div> <div style="float:left;line-height:10.80pt;margin-left:4pt;text-align:left;width:505.00pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic;font-weight:bold">Structured Notes Risk </span><span style="color:#000000;font-family:arial;font-size:9.30pt;font-style:italic">—</span><span style="color:#000000;font-family:arial;font-size:9.30pt"> Structured notes and other related instruments purchased by the Fund are generally </span><span style="color:#000000;font-family:arial;font-size:9.30pt">privately negotiated debt obligations where the principal and/or interest is determined by reference to the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance of a specific asset, benchmark asset, market or interest rate (“reference measure”). The purchase of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">structured notes exposes the Fund to the credit risk of the issuer of the structured product. Structured notes may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">be leveraged, increasing the volatility of each structured note’s value relative to the change in the reference </span><span style="color:#000000;font-family:arial;font-size:9.30pt">measure. Structured notes may also be less liquid and more difficult to price accurately than less complex </span><span style="color:#000000;font-family:arial;font-size:9.30pt">securities and instruments or more traditional debt securities.</span></div> </div> <div style="clear:both;position:relative;"> </div> </div> Performance Information <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">The information shows you how the Fund’s performance has varied for the periods since inception and provides some </span><span style="color:#000000;font-family:arial;font-size:9.30pt">indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the MSCI </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Emerging Markets ex China Index (Net). To the extent that dividends and distributions have been paid by the Fund, the </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. </span><span style="color:#000000;font-family:arial;font-size:9.30pt">As with all such investments, past performance (before and after taxes) is not an indication of future results. The table </span><span style="color:#000000;font-family:arial;font-size:9.30pt">includes all applicable fees. If the Fund’s investment manager and its affiliates had not waived or reimbursed certain </span><span style="color:#000000;font-family:arial;font-size:9.30pt">Fund expenses during these periods, the Fund’s returns would have been lower. Updated information on the Fund’s </span><span style="color:#000000;font-family:arial;font-size:9.30pt">performance, including its current net asset value, can be obtained by visiting www.blackrock.com or can be obtained </span><span style="color:#000000;font-family:arial;font-size:9.30pt">by phone at </span><span style="color:#000000;font-family:arial;font-size:9.30pt">(800) 882-0052</span><span style="color:#000000;font-family:arial;font-size:9.30pt">.</span></div> The information shows you how the Fund’s performance has varied for the periods since inception and provides some indication of the risks of investing in the Fund. As with all such investments, past performance (before and after taxes) is not an indication of future results. www.blackrock.com (800) 882-0052 Class K Shares ANNUAL TOTAL RETURNS BlackRock Emerging Markets ex-China Fund As of 12/31 <div style="margin-top:6pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">During the periods shown in the bar chart, the highest return for a quarter was 16.99% (quarter ended June 30, 2025) </span><span style="color:#000000;font-family:arial;font-size:9.30pt">and the lowest return for a quarter was -8.79% (quarter ended December 31, 2024). The year-to-date return as of </span><span style="color:#000000;font-family:arial;font-size:9.30pt">June 30, 2026 was 48.19%.</span><span style="color:#000000;font-family:arial;font-size:1pt;line-height:0.93pt"> </span></div> highest return 0.1699 2025-06-30 lowest return -0.0879 2024-12-31 year-to-date return 2026-06-30 0.4819 For the periods ended 12/31/25Average Annual Total Returns 2023-03-29 2023-03-29 2023-03-29 0.3178 0.1692 0.3279 0.1610 0.2016 0.1322 0.3461 0.1947 <div style="margin-top:12pt;"><span style="color:#000000;font-family:arial;font-size:9.30pt">After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not </span><span style="color:#000000;font-family:arial;font-size:9.30pt">reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may </span><span style="color:#000000;font-family:arial;font-size:9.30pt">differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through </span><span style="color:#000000;font-family:arial;font-size:9.30pt">tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.</span><span style="color:#000000;font-family:arial;font-size:9.30pt;line-height:10.695pt"> </span></div> After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. Other Expenses have been restated to reflect current fees. The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses and restatement of Other Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 45, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 45, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 1.11% (for Investor A Shares) and 0.86% (for Institutional Shares) of average daily net assets through June 30, 2028. The Fund may have to repay some of these waivers and/or reimbursements to BlackRock in the two years following such waivers and/or reimbursements, and such repayment arrangement will terminate on March 15, 2030. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider. Such indices use withholding tax rates that are often at a higher rate than the rates to which the Fund is subject in each country, including for countries where the Fund is not subject to withholding taxes. When this is the case, index performance will be lower than if the index used the Fund’s applicable withholding tax rates, if any. A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 35, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. Other Expenses have been restated to reflect current fees. The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets in the Fund’s most recent Annual Financial Statements and Additional Information, which do not include Acquired Fund Fees and Expenses and restatement of Other Expenses. As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 35, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.81% (for Class K Shares) of average daily net assets through June 30, 2028. The Fund may have to repay some of these waivers and/or reimbursements to BlackRock in the two years following such waivers and/or reimbursements, and such repayment arrangement will terminate on March 15, 2030. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non-interested trustees of the Trust or by a vote of a majority of the outstanding voting securities of the Fund. Returns for net indices generally assume the reinvestment of dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the country as determined by the index provider. Such indices use withholding tax rates that are often at a higher rate than the rates to which the Fund is subject in each country, including for countries where the Fund is not subject to withholding taxes. When this is the case, index performance will be lower than if the index used the Fund’s applicable withholding tax rates, if any.