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bf1:C000223507Member 2025-01-01 2025-12-31 0000844779 bf1:InvestorAInstitutionalMember bf1:S000070274Member bf1:C000223508Member 2025-01-01 2025-12-31 iso4217:USD pure 0000844779 false 485BPOS 2026-04-30 0.0445 -0.1134 0.1167 0.1016 0.1396 0.0471 -0.1112 0.1198 0.1050 0.1438 N-1A BlackRock Funds 2026-08-28 Fund OverviewKey Facts About BlackRock Defensive Advantage Emerging Markets Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Defensive Advantage Emerging Markets Fund (the “Fund”), a series of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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 to provide long-term capital appreciation.</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.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> 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><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </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) 0.0080 0.0080 0.0025 0 0.0345 0.0332 0.0450 0.0412 -0.0339 -0.0327 0.0111 0.0085 <div style="float: left; line-height: 7.44pt; margin-left: 9.6pt; text-align: left; width: 505.00pt;"><span style="color: #000000; font-family: arial; font-size: 7.44pt;">A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after </span><span style="color: #000000; font-family: arial; font-size: 7.44pt;">purchase where no initial sales charge was paid at the time of purchase as part of an investment of $1,000,000 or more.</span><span style="color: #000000; font-family: arial; font-size: 7.44pt; line-height: 8pt;"> </span></div> June 30, 2028 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 the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span></div> <div style="line-height: 10.695pt; text-align: left;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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> 632 1523 2422 4710 87 953 1834 4105 Portfolio Turnover: <div style="line-height: 10.695pt; margin-top: 0.0pt; 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;">211</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span></div> 2.11 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pursues a “defensive” investment style, seeking to provide downside protection with upside potential </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">through active stock selection, risk management and diversification. The Fund seeks to pursue its investment objective </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by investing in securities in a disciplined manner, by using proprietary return forecast models that incorporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">quantitative analysis. These forecast models are designed to prioritize insights that demonstrate downside protection </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as well as identify aspects of mispricing across stocks which the Fund can seek to capture by over- and under-weighting</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> particular equity securities while seeking to control incremental risk.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> borrowings for investment purposes, in equity securities issued by, or tied economically to, companies in emerging</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> markets and derivatives that have similar economic characteristics to such securities. Investments in derivatives are</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> counted toward the Fund’s 80% policy to the extent that they provide investment exposure to one or more market risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> factors associated with such securities. BlackRock considers an emerging market country to include any country that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is: (1) generally recognized to be an emerging market country by the international financial community, including the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">World Bank; (2) classified by the United Nations as a developing country; or (3) included in the MSCI Emerging Markets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index (the “MSCI EM Index”). BlackRock determines that an investment is tied economically to an emerging market if </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">such investment satisfies one or more of the following conditions: (1) the issuer’s primary trading market is in an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">emerging market; (2) the issuer is organized under the laws of, derives at least 50% of its revenue from, or has at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">least 50% of its assets in emerging markets; or (3) the investment is included in an index representative of emerging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund primarily intends to invest in equity securities, which include common stock, preferred stock and depositary </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">receipts, or other financial instruments that are components of, or have characteristics similar to, the securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">included in the MSCI EM Index. The MSCI EM Index is a capitalization-weighted index from a broad range of industries </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">chosen for market size, liquidity and industry group representation. As of July 31, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">2026</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, the issuers in the MSCI EM </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index have a market capitalization ranging from $</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">156.54</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> million to $</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">1.96</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;">trillion</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. The Fund primarily seeks to buy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">common stock and may also invest in preferred stock. The Fund may also purchase convertible securities. From time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to time, the Fund may invest in shares of companies through “new issues” or initial public offerings (“IPOs”).</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may use derivatives, including options, futures, swaps (including, but not limited to, total return swaps, some </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of which may be referred to as contracts for difference) and forward contracts both to seek to increase the return of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund and to hedge (or protect) the value of its assets against adverse movements in currency exchange rates, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rates and movements in the securities markets. In order to manage cash flows into or out of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">effectively, the Fund may buy and sell financial futures contracts or options on such contracts. Derivatives are financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments whose value is derived from another security, a currency or an index, including but not limited to the MSCI </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">EM Index. The use of options, futures, swaps (including, but not limited to, total return swaps, some of which may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">referred to as contracts for difference) and forward contracts can be effective in protecting or enhancing the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund’s assets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 7pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund seeks to pursue its investment objective by investing in securities in a disciplined manner, by using </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">proprietary return forecast models that incorporate quantitative analysis. These forecast models are designed to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">prioritize insights that demonstrate downside protection as well as identify aspects of mispricing across stocks which </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund can seek to capture by over- and under-weighting particular equity securities while seeking to control </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">incremental risk. BlackRock then constructs and rebalances the portfolio by integrating its investment insights with the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">model-based optimization process.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> borrowings for investment purposes, in equity securities issued by, or tied economically to, companies in emerging</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> markets and derivatives that have similar economic characteristics to such securities. Investments in derivatives are</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> counted toward the Fund’s 80% policy to the extent that they provide investment exposure to one or more market risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> factors associated with such securities. BlackRock considers an emerging market country to include any country that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is: (1) generally recognized to be an emerging market country by the international financial community, including the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">World Bank; (2) classified by the United Nations as a developing country; or (3) included in the MSCI Emerging Markets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index (the “MSCI EM Index”). BlackRock determines that an investment is tied economically to an emerging market if </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">such investment satisfies one or more of the following conditions: (1) the issuer’s primary trading market is in an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">emerging market; (2) the issuer is organized under the laws of, derives at least 50% of its revenue from, or has at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">least 50% of its assets in emerging markets; or (3) the investment is included in an index representative of emerging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities issued by, or tied economically to, companies in emerging markets and derivatives that have similar economic characteristics to such securities. Investments in derivatives are counted toward the Fund’s 80% policy to the extent that they provide investment exposure to one or more market risk factors associated with such securities. <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund primarily intends to invest in equity securities, which include common stock, preferred stock and depositary </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">receipts, or other financial instruments that are components of, or have characteristics similar to, the securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">included in the MSCI EM Index. The MSCI EM Index is a capitalization-weighted index from a broad range of industries </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">chosen for market size, liquidity and industry group representation. As of July 31, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">2026</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, the issuers in the MSCI EM </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index have a market capitalization ranging from $</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">156.54</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> million to $</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">1.96</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;">trillion</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. The Fund primarily seeks to buy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">common stock and may also invest in preferred stock. The Fund may also purchase convertible securities. From time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to time, the Fund may invest in shares of companies through “new issues” or initial public offerings (“IPOs”).</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 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;">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;">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><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 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><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;">Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.</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 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><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;">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><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: 493.0pt;"><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><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 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></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;">Model Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund seeks to pursue its investment objective by using proprietary models that incorporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">quantitative analysis. Investments selected using these models may perform differently than as forecasted due to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the factors incorporated into the models and the weighting of each factor, changes from historical trends, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues in the construction and implementation of the models (including, but not limited to, software issues, issues </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">related to the use of artificial intelligence and machine learning (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">AI</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), and other technological issues). There is no </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">guarantee that BlackRock’s use of these models will result in effective investment decisions for the Fund.</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: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information and data used in the models may be supplied by third parties. Inaccurate or incomplete data may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limit the effectiveness of the models. In addition, some of the data that BlackRock uses may be historical data, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which may not accurately predict future market movement. There is a risk that the models will not be successful in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">selecting investments or in determining the weighting of investment positions that will enable the Fund to achieve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its investment objective.</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;">China Investments 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;">Investments in Chinese securities, including certain Hong Kong-listed and U.S.-listed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, are subject to risks specific to China. China may be subject to considerable degrees of economic, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">political and social instability. Despite significant economic and market reforms in recent decades, the Chinese </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">government’s control over certain sectors and enterprises and significant regulation of investment and industry are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">still pervasive. Chinese companies are subject to the risk that Chinese authorities can intervene in their operations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and structure. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">resulting from governmental influence, a lack of publicly available information and/or political and social instability. </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;">Internal social unrest or confrontations with other countries, including military conflicts in response to such events, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may disrupt China’s economy and markets and result in a greater risk of currency fluctuations, currency non-convertibility,</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> interest rate fluctuations and higher inflation.</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;">China has experienced security concerns, such as terrorism and strained international relations. Additionally, China </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is alleged to have participated in state-sponsored cyberattacks against foreign companies and foreign governments. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Actual and threatened responses to such activity and strained international relations, including purchasing </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">restrictions, sanctions, export controls, tariffs or cyberattacks on the Chinese government or Chinese companies, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may impact China’s economy and Chinese issuers in which the Fund invests. Incidents involving China’s or the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">region’s security may adversely affect the Chinese economy and markets and the Fund’s investments. The Chinese </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">economy is highly reliant on trade. A reduction in spending on Chinese products and services, supply chain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">diversification, the institution of additional tariffs or other trade barriers (including as a result of heightened trade </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tensions or a trade war between China and the United States or in response to actual or alleged Chinese cyber </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">activity) or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Chinese economy. Certain companies may be subject to economic or trade restrictions (but not investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">restrictions) imposed by the United States or other governments due to national security, human rights or other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">concerns of such government. So long as these restrictions do not include restrictions on investments, the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may invest in such companies. Other economic challenges for China include indebtedness, weak consumer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">demand, and an aging population. China continues to face pressure from its trading partners over its exporting of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its excess industrial capacity and overall approach to economic 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;">The United States and China have been engaged in an ongoing trade war with one another, which has led to trade </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">frictions between their economies and negative flow-on consequences on global markets and other nations closely </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">affiliated with those countries. The current political climate has intensified concerns about an ongoing trade war </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">between China and the United States, as each country has imposed tariffs on the other country’s products. These </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions may trigger a significant reduction in international trade, the oversupply of certain manufactured goods, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">substantial price reductions of goods and possible failure of individual companies and/or large segments of China’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">export industry, which could have a negative impact on the Fund’s performance. In addition, there is a risk that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">further capital controls and/or sanctions may be imposed, which could include the prohibition of, or restrictions on, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the ability to own or transfer currency, securities, derivatives or other assets and may also include retaliatory </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions, such as seizure of assets. Any of these actions could severely impair the Fund’s ability to purchase, sell, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transfer, receive, deliver or otherwise obtain exposure to Chinese securities and assets, including the ability to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liquidity of such assets or otherwise adversely affect the Fund’s operations, causing the Fund to decline in value. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">imposed or other escalating actions may be taken in the future. From time to time, China has experienced </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">outbreaks of infectious illnesses. The country may be subject to other public health threats, infectious illnesses, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">diseases or similar issues in the future. Any spread of an infectious illness, public health threat or similar issue </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and generally have a significant impact on the Chinese economy, which in turn could adversely affect the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Chinese companies, including those listed on U.S. exchanges, are not subject to the same degree of regulatory </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">requirements, accounting standards or auditor oversight as companies in more developed countries. As a result, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">information about the Chinese securities in which the Fund invests may be less reliable or complete. Chinese </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">companies with securities listed on U.S. exchanges may be delisted if they do not meet U.S. accounting standards </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and auditor oversight requirements, which would significantly decrease the liquidity and value of the securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There may be significant obstacles to obtaining information necessary for investigations into or litigation against </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Chinese companies, and shareholders may have limited legal remedies. Many Chinese companies listed on U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exchanges use variable interest entities or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">VIEs</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> in their structure as a result of foreign ownership restrictions. Any </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">change in the operations of entities in a VIE structure, the status of VIE contractual arrangements or the legal or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulatory environment in China could result in significant, and possibly permanent and/or total, losses for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments in VIE issuers. The Fund does not select investments based on investor protection considerations.</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;">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; 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><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; 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><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;">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><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;">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><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;">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><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;">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><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;">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><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;">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><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;">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><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;">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><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;">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> <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></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: 10.80pt; 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;">Investment</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">in a Particular Geographic Region or Country 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; font-style: italic; font-weight: bold;">Asia-Pacific </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Countries</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; line-height: 10.695pt;"> </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; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investments in Asian-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Pacific issuers subject the Fund to legal</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulatory,</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;">political,</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;">economic,</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;">currency,</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;">geographic and security risks that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are specific to Asian-Pacific countries</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Certain Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-Pacific countries have experienced </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">economic</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> growth and </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;">industrialization in recent years, but there is no assurance that this growth rate will be maintained. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Some Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-Pacific</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> countries</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;">have experienced expropriation and/or nationalization of assets</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">confiscatory taxation</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">currency </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">devaluations and restrictions, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">political or</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> social instability, and armed conflict</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">An adverse economic or political </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">event in one Asian-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Pacific country may negatively affect countries throughout the region. Because many Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-Pacific</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> countries </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">depend significantly on international trade,</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> shifts in relationships with key trading partners,</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;">such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as China and</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> the United States</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, may have a region-wide economic impact</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain Asian-Pacific countries have </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">developed increasingly strained relationships with the United States or China; if these relations were to worsen, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">they could adversely affect Asian-Pacific issuers that rely on the United States or China for trade and the region as a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">whole. A shift towards protectionist policies by these countries or other key trading partners could suppress exports </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">from Asian-Pacific countries and reduce foreign investment in the region.</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;">Many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-Pacific countries are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">also </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to political risk, including political instability, corruption and regional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">conflicts</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. North Korea and South Korea each have substantial military capabilities, and historical tensions between </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the two countries present the risk of war. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">China has a complex territorial dispute regarding the sovereignty of Taiwan </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and has pledged to take control of Taiwan</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including by force if necessary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Frictions between</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> China and the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Philippines in the South China Sea pose a risk of escalation potentially leading to military conflict</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;">The continuation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or escalation of these or other hostilities may</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;">have an adverse impact throughout</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> the region</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;">In addition, many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-Pacific countries are subject to social and labor risks associated with demands for improved political, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">economic and social conditions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These risks, among others, may adversely affect the value of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments with exposure to Asia.</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></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;">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. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> 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</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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,</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> regional or global events such as war, acts of terrorism, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">natural and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">environmental disasters,</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> the spread of infectious illness or other public health issues</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, recessions, or other events</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund seeks to pursue its investment objective by using proprietary models that incorporate quantitative analysis </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and is subject to “Model Risk” as described above.</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: 505.00pt;"><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></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 </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">artificial intelligence and machine learning (“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">AI</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”)</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, 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; 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;">Small and Mid-Capitalization Company Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Companies with small or mid-size market capitalizations will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">normally have more limited product lines, markets and financial resources and will be dependent upon a more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited management group than larger capitalized companies. In addition, it is more difficult to get information on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">smaller companies, which tend to be less well known, have shorter operating histories, do not have significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">ownership by large investors and are followed by relatively few securities analysts.</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 performance of the Fund has varied for the periods since inception and provides</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> some 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 Index (Net) and the MSCI Emerging Markets Minimum Volatility Index (Net). The MSCI Emerging</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Markets Minimum Volatility Index (Net) is relevant to the Fund because it has characteristics similar to the Fund’s</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> investment strategies. To the extent that dividends and distributions have been paid by the Fund, the performance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. As with all</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> such investments, past performance (before and after taxes) is not an indication of future results. Sales charges are</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> not reflected in the bar chart. If they were, returns would be less than those shown. However, the table includes all</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> applicable fees and sales charges. If BlackRock and its affiliates had not waived or reimbursed certain Fund expenses </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">during these periods, the Fund’s returns would have been lower. Information on the Fund’s performance, including its </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">current net asset value, can be obtained by visiting 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 performance of the Fund has varied for the periods since inception and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the MSCI Emerging Markets Index (Net) and the MSCI Emerging Markets Minimum Volatility Index (Net). The MSCI Emerging Markets Minimum Volatility Index (Net) is relevant to the Fund because it has characteristics similar to the Fund’s investment strategies. 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 Defensive Advantage Emerging Markets 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 8.65% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">September 30, 2024) and the lowest return for a quarter was -10.18% (quarter ended June 30, 2022). The year-to-date return</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> as of June 30, 2026</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> was 18.54</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0865 2024-09-30 lowest return -0.1018 2022-06-30 year-to-date return 2026-06-30 0.1854 For the periods ended 12/31/25Average Annual Total Returns 2020-12-21 2020-12-21 2020-12-21 2020-12-21 0.0798 0.0423 0.0477 0.0588 0.0311 0.0364 0.0573 0.0308 0.0350 0.1432 0.0563 0.0617 0.3357 0.0420 0.0476 0.1342 0.0411 0.0462 <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 the after-tax returns for 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 the after-tax returns for Institutional Shares will vary. Fund OverviewKey Facts About BlackRock Defensive Advantage Emerging Markets Fund Investment Objective <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The investment objective of BlackRock Defensive Advantage Emerging Markets Fund (the “Fund”), a series of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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 to provide long-term capital appreciation.</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; line-height: 10.695pt;"> </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;"> You may pay other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">fees, such as brokerage commissions and other fees to your financial professional or your selected securities dealer, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC (“BlackRock”) </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and its affiliates) (each, a “Financial Intermediary”), which are not reflected in the table and 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) 0.0080 0 0.0326 0.0406 -0.0325 0.0081 June 30, 2028 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 the Fund with the cost of investing in other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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> 83 937 1807 4055 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;">211</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">% of the average value of its portfolio.</span></div> 2.11 Principal Investment Strategies of the Fund <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund pursues a “defensive” investment style, seeking to provide downside protection with upside potential </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">through active stock selection, risk management and diversification. The Fund seeks to pursue its investment objective </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">by investing in securities in a disciplined manner, by using proprietary return forecast models that incorporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">quantitative analysis. These forecast models are designed to prioritize insights that demonstrate downside protection </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as well as identify aspects of mispricing across stocks which the Fund can seek to capture by over- and under-weighting</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> particular equity securities while seeking to control incremental risk.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> borrowings for investment purposes, in equity securities issued by, or tied economically to, companies in emerging</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> markets and derivatives that have similar economic characteristics to such securities. Investments in derivatives are</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> counted toward the Fund’s 80% policy to the extent that they provide investment exposure to one or more market risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> factors associated with such securities. BlackRock considers an emerging market country to include any country that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is: (1) generally recognized to be an emerging market country by the international financial community, including the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">World Bank; (2) classified by the United Nations as a developing country; or (3) included in the MSCI Emerging Markets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index (the “MSCI EM Index”). BlackRock determines that an investment is tied economically to an emerging market if </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">such investment satisfies one or more of the following conditions: (1) the issuer’s primary trading market is in an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">emerging market; (2) the issuer is organized under the laws of, derives at least 50% of its revenue from, or has at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">least 50% of its assets in emerging markets; or (3) the investment is included in an index representative of emerging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund primarily intends to invest in equity securities, which include common stock, preferred stock and depositary </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">receipts, or other financial instruments that are components of, or have characteristics similar to, the securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">included in the MSCI EM Index. The MSCI EM Index is a capitalization-weighted index from a broad range of industries </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">chosen for market size, liquidity and industry group representation. As of July 31, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">2026</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, the issuers in the MSCI EM </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index have a market capitalization ranging from $</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">156.54</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> million to $</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">1.96</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;">trillion</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. The Fund primarily seeks to buy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">common stock and may also invest in preferred stock. The Fund may also purchase convertible securities. From time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to time, the Fund may invest in shares of companies through “new issues” or initial public offerings (“IPOs”).</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund may use derivatives, including options, futures, swaps (including, but not limited to, total return swaps, some </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">of which may be referred to as contracts for difference) and forward contracts both to seek to increase the return of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund and to hedge (or protect) the value of its assets against adverse movements in currency exchange rates, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">interest rates and movements in the securities markets. In order to manage cash flows into or out of the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">effectively, the Fund may buy and sell financial futures contracts or options on such contracts. Derivatives are financial </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">instruments whose value is derived from another security, a currency or an index, including but not limited to the MSCI </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">EM Index. The use of options, futures, swaps (including, but not limited to, total return swaps, some of which may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">referred to as contracts for difference) and forward contracts can be effective in protecting or enhancing the value of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund’s assets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> <div style="margin-top: 7pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund seeks to pursue its investment objective by investing in securities in a disciplined manner, by using </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">proprietary return forecast models that incorporate quantitative analysis. These forecast models are designed to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">prioritize insights that demonstrate downside protection as well as identify aspects of mispricing across stocks which </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the Fund can seek to capture by over- and under-weighting particular equity securities while seeking to control </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">incremental risk. BlackRock then constructs and rebalances the portfolio by integrating its investment insights with the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">model-based optimization process.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> borrowings for investment purposes, in equity securities issued by, or tied economically to, companies in emerging</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> markets and derivatives that have similar economic characteristics to such securities. Investments in derivatives are</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> counted toward the Fund’s 80% policy to the extent that they provide investment exposure to one or more market risk</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> factors associated with such securities. BlackRock considers an emerging market country to include any country that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is: (1) generally recognized to be an emerging market country by the international financial community, including the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">World Bank; (2) classified by the United Nations as a developing country; or (3) included in the MSCI Emerging Markets </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index (the “MSCI EM Index”). BlackRock determines that an investment is tied economically to an emerging market if </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">such investment satisfies one or more of the following conditions: (1) the issuer’s primary trading market is in an </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">emerging market; (2) the issuer is organized under the laws of, derives at least 50% of its revenue from, or has at </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">least 50% of its assets in emerging markets; or (3) the investment is included in an index representative of emerging </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">markets.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> Under normal circumstances, the Fund seeks to invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in equity securities issued by, or tied economically to, companies in emerging markets and derivatives that have similar economic characteristics to such securities. Investments in derivatives are counted toward the Fund’s 80% policy to the extent that they provide investment exposure to one or more market risk factors associated with such securities. <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund primarily intends to invest in equity securities, which include common stock, preferred stock and depositary </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">receipts, or other financial instruments that are components of, or have characteristics similar to, the securities </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">included in the MSCI EM Index. The MSCI EM Index is a capitalization-weighted index from a broad range of industries </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">chosen for market size, liquidity and industry group representation. As of July 31, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">2026</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, the issuers in the MSCI EM </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Index have a market capitalization ranging from $</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">156.54</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> million to $</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">1.96</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;">trillion</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. The Fund primarily seeks to buy </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">common stock and may also invest in preferred stock. The Fund may also purchase convertible securities. From time </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">to time, the Fund may invest in shares of companies through “new issues” or initial public offerings (“IPOs”).</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; line-height: 10.695pt;"> </span></div> 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;">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;">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></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;">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; 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><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 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><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;">Changes in foreign currency exchange rates can affect the value of the Fund’s portfolio.</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 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><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;">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><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: 493.0pt;"><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><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 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></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;">Model Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— The Fund seeks to pursue its investment objective by using proprietary models that incorporate </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">quantitative analysis. Investments selected using these models may perform differently than as forecasted due to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the factors incorporated into the models and the weighting of each factor, changes from historical trends, and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">issues in the construction and implementation of the models (including, but not limited to, software issues, issues </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">related to the use of artificial intelligence and machine learning (</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">AI</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">), and other technological issues). There is no </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">guarantee that BlackRock’s use of these models will result in effective investment decisions for the Fund.</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: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The information and data used in the models may be supplied by third parties. Inaccurate or incomplete data may </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limit the effectiveness of the models. In addition, some of the data that BlackRock uses may be historical data, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">which may not accurately predict future market movement. There is a risk that the models will not be successful in </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">selecting investments or in determining the weighting of investment positions that will enable the Fund to achieve </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its investment objective.</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;">China Investments 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;">Investments in Chinese securities, including certain Hong Kong-listed and U.S.-listed </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">securities, are subject to risks specific to China. China may be subject to considerable degrees of economic, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">political and social instability. Despite significant economic and market reforms in recent decades, the Chinese </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">government’s control over certain sectors and enterprises and significant regulation of investment and industry are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">still pervasive. Chinese companies are subject to the risk that Chinese authorities can intervene in their operations </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and structure. Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">resulting from governmental influence, a lack of publicly available information and/or political and social instability. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Internal social unrest or confrontations with other countries, including military conflicts in response to such events, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may disrupt China’s economy and markets and result in a greater risk of currency fluctuations, currency non-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">convertibility, interest rate fluctuations and higher inflation.</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;">China has experienced security concerns, such as terrorism and strained international relations. Additionally, China </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">is alleged to have participated in state-sponsored cyberattacks against foreign companies and foreign governments. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Actual and threatened responses to such activity and strained international relations, including purchasing </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">restrictions, sanctions, export controls, tariffs or cyberattacks on the Chinese government or Chinese companies, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may impact China’s economy and Chinese issuers in which the Fund invests. Incidents involving China’s or the </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">region’s security may adversely affect the Chinese economy and markets and the Fund’s investments. The Chinese </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">economy is highly reliant on trade. A reduction in spending on Chinese products and services, supply chain </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">diversification, the institution of additional tariffs or other trade barriers (including as a result of heightened trade </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">tensions or a trade war between China and the United States or in response to actual or alleged Chinese cyber </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">activity) or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the </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;">Chinese economy. Certain companies may be subject to economic or trade restrictions (but not investment </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">restrictions) imposed by the United States or other governments due to national security, human rights or other </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">concerns of such government. So long as these restrictions do not include restrictions on investments, the Fund </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">may invest in such companies. Other economic challenges for China include indebtedness, weak consumer </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">demand, and an aging population. China continues to face pressure from its trading partners over its exporting of </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">its excess industrial capacity and overall approach to economic 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;">The United States and China have been engaged in an ongoing trade war with one another, which has led to trade </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">frictions between their economies and negative flow-on consequences on global markets and other nations closely </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">affiliated with those countries. The current political climate has intensified concerns about an ongoing trade war </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">between China and the United States, as each country has imposed tariffs on the other country’s products. These </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions may trigger a significant reduction in international trade, the oversupply of certain manufactured goods, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">substantial price reductions of goods and possible failure of individual companies and/or large segments of China’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">export industry, which could have a negative impact on the Fund’s performance. In addition, there is a risk that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">further capital controls and/or sanctions may be imposed, which could include the prohibition of, or restrictions on, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the ability to own or transfer currency, securities, derivatives or other assets and may also include retaliatory </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">actions, such as seizure of assets. Any of these actions could severely impair the Fund’s ability to purchase, sell, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transfer, receive, deliver or otherwise obtain exposure to Chinese securities and assets, including the ability to </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">liquidity of such assets or otherwise adversely affect the Fund’s operations, causing the Fund to decline in value. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">imposed or other escalating actions may be taken in the future. From time to time, China has experienced </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">outbreaks of infectious illnesses. The country may be subject to other public health threats, infectious illnesses, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">diseases or similar issues in the future. Any spread of an infectious illness, public health threat or similar issue </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and generally have a significant impact on the Chinese economy, which in turn could adversely affect the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments.</span></div> <div style="margin-top: 6pt;"><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Chinese companies, including those listed on U.S. exchanges, are not subject to the same degree of regulatory </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">requirements, accounting standards or auditor oversight as companies in more developed countries. As a result, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">information about the Chinese securities in which the Fund invests may be less reliable or complete. Chinese </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">companies with securities listed on U.S. exchanges may be delisted if they do not meet U.S. accounting standards </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and auditor oversight requirements, which would significantly decrease the liquidity and value of the securities. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">There may be significant obstacles to obtaining information necessary for investigations into or litigation against </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Chinese companies, and shareholders may have limited legal remedies. Many Chinese companies listed on U.S. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">exchanges use variable interest entities or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">VIEs</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> in their structure as a result of foreign ownership restrictions. Any </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">change in the operations of entities in a VIE structure, the status of VIE contractual arrangements or the legal or </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulatory environment in China could result in significant, and possibly permanent and/or total, losses for </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments in VIE issuers. The Fund does not select investments based on investor protection considerations.</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;">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;">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><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; 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><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;">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><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;">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><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;">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><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;">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><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;">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><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;">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><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;">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><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;">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><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;">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> <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></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: 10.80pt; 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;">Investment in a Particular Geographic Region or Country 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; font-style: italic; font-weight: bold;">Asia-Pacific </span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; font-weight: bold;">Countries</span><span style="color: #000000; font-family: arial; font-size: 9.30pt; font-style: italic; line-height: 10.695pt;"> </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; line-height: 10.695pt;"> </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Investments in Asian-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Pacific issuers subject the Fund to legal</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">regulatory,</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;">political,</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;">economic,</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;">currency,</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;">geographic and security risks that </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">are specific to Asian-Pacific countries</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Certain Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-Pacific countries have experienced </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">economic</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> growth and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">industrialization in recent years, but there is no assurance that this growth rate will be maintained. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Some Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Pacific countries</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;">have experienced expropriation and/or nationalization of assets</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">confiscatory taxation</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">currency </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">devaluations and restrictions, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">political or</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> social instability, and armed conflict</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">An adverse economic or political </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">event in one Asian-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Pacific country may negatively affect countries throughout the region. Because many Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Pacific countries </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">depend significantly on international trade,</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> shifts in relationships with key trading partners,</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;">such </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">as China and</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> the United States</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, may have a region-wide economic impact</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Certain Asian-Pacific countries have </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">developed increasingly strained relationships with the United States or China; if these relations were to worsen, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">they could adversely affect Asian-Pacific issuers that rely on the United States or China for trade and the region as a </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">whole. A shift towards protectionist policies by these countries or other key trading partners could suppress exports </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">from Asian-Pacific countries and reduce foreign investment in the region.</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;">Many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-Pacific countries are </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">also </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">subject to political risk, including political instability, corruption and regional </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">conflicts</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. North Korea and South Korea each have substantial military capabilities, and historical tensions between </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">the two countries present the risk of war. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">China has a complex territorial dispute regarding the sovereignty of Taiwan </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and has pledged to take control of Taiwan</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">including by force if necessary</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Frictions between</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> China and</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> the </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;">Philippines in the South China Sea pose a risk of escalation potentially leading to military conflict</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;">The continuation </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">or escalation of these or other hostilities may</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;">have an adverse impact throughout</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> the region</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;">In addition, many </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">Asian</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">-Pacific countries are subject to social and labor risks associated with demands for improved political, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">economic and social conditions.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> These risks, among others, may adversely affect the value of the Fund’s </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">investments with exposure to Asia.</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;">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></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;">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. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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.</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> 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</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">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,</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> regional or global events such as war, acts of terrorism, </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">natural and </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">environmental disasters,</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> the spread of infectious illness or other public health issues</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, recessions, or other events</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">. </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">The Fund seeks to pursue its investment objective by using proprietary models that incorporate quantitative analysis </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">and is subject to “Model Risk” as described above.</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: 505.00pt;"><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></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 </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">artificial intelligence and machine learning (“</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">AI</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">”)</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">, 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;">Small and Mid-Capitalization Company Risk </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">— Companies with small or mid-size market capitalizations will </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">normally have more limited product lines, markets and financial resources and will be dependent upon a more </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">limited management group than larger capitalized companies. In addition, it is more difficult to get information on </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">smaller companies, which tend to be less well known, have shorter operating histories, do not have significant </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">ownership by large investors and are followed by relatively few securities analysts.</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 performance of the Fund has varied for the periods since inception and provides</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> some 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 Index (Net) and the MSCI Emerging Markets Minimum Volatility Index (Net). The MSCI Emerging</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> Markets Minimum Volatility Index (Net) is relevant to the Fund because it has characteristics similar to the Fund’s</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> investment strategies. To the extent that dividends and distributions have been paid by the Fund, the performance </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">information for the Fund in the chart and table assumes reinvestment of the dividends and distributions. As with all</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> such investments, past performance (before and after taxes) is not an indication of future results. The table includes </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">all applicable fees. If BlackRock and its affiliates had not waived or reimbursed certain Fund expenses during these </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">periods, the Fund’s returns would have been lower. Information on the Fund’s performance, including its current net </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">asset value, can be obtained by visiting 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 performance of the Fund has varied for the periods since inception and provides some indication of the risks of investing in the Fund. The table compares the Fund’s performance to that of the MSCI Emerging Markets Index (Net) and the MSCI Emerging Markets Minimum Volatility Index (Net). The MSCI Emerging Markets Minimum Volatility Index (Net) is relevant to the Fund because it has characteristics similar to the Fund’s investment strategies. 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 Defensive Advantage Emerging Markets 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 8.75% (quarter ended </span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">September 30, 2024) and the lowest return for a quarter was -10.17% (quarter ended June 30, 2022). The year-to-date return</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> as of June 30, 2026</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;"> was 18.61</span><span style="color: #000000; font-family: arial; font-size: 9.30pt;">%.</span><span style="color: #000000; font-family: arial; font-size: 1pt; line-height: 0.93pt;"> </span></div> highest return 0.0875 2024-09-30 lowest return -0.1017 2022-06-30 year-to-date return 2026-06-30 0.1861 0.1861 For the periods ended 12/31/25Average Annual Total Returns 2020-12-21 2020-12-21 2020-12-21 0.1438 0.0566 0.0620 0.1205 0.0443 0.0497 0.0958 0.0418 0.0461 0.3357 0.0420 0.0476 0.1342 0.0411 0.0462 <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></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. 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 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. 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. 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. 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. 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% of average daily net assets through June 30, 2028. 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.